The highest number in the prison during the past year was one hundred and fifty-four. Of this number, sixteen have been pardoned; three of them on account of insanity; five for good conduct, (the pardons being granted within a few weeks of the expiration of their sentences,) and the remaining eight were pardoned upon the application of the Courts, Juries, and citizens, who were presumed to be well acquainted with each case recommended to the Executive.

There is no duty devolving upon your Executive that is more embarrassing, and surrounded with greater difficulties than the pardoning power. With whatever care he may watch and guard its exercise, he is liable to great impositions. In view of my brief experience on this subject, I have adopted the following rule to be observed as far as practicable in all applications.

They are presented in this communication with the view of submitting them to you, and through you to our fellow citizens, believing, that they may be worthy of being made the subject of Legislation, at least of an advisory character.

Ist. That in all applications for a pardon, notice should be given of the time when the same would be made.

2d. That those who represent the State upon the trial, should furnish at least the substance of the evidence.

By adopting this course, the Executive will be relieved from deciding applications on ex parte petitions, letters, &c., and will have before him the evidence on the trial. This course has been pursued in the State of New York, and the Executive, after one year's experience, speaks in the highest terms of the wisdom of the law.

It is respectfully suggested that power be given in the trial of cases of larceny, to imprison in the County Jails or State Prison at the discretion of the Jury, without regard to the value of property; or, at least, increase the limit prescribed by law for the division between grand and petit larceny. Intimately connected with this change in our criminal law, is the improvement in the regulations of our county prisons. By a very slight change in many counties, we may have the prisoners engaged in useful occupation. Each county should be prepared with buildings for the reception of juvenile offenders, so constructed and furnished as to provide for the regular occupation of all the inmates. It is idle to talk of reforming the young man, who, for his first offence, has been convicted for stealing property of the value of five dollars, and sentenced to two years' imprisonment in the State Prison, thus placing him by the side of the murderer. We must place the young and juvenile offender where his associations and intercourse are with those who will exercise an influence for good, and not with the old and hardened in crime. Our county prisons should be converted into workshopsinto houses of industry-wearing the appearance of decency and order. Active employment should be required of all its occupants; for idleness itself often proves to be the school of vice. In this way

we may not only reform the prisoners, but we should compel them to contribute to their own support, and to pay, by the sweat of the brow, the penalty of the violated law, and cost of conviction, thus directly relieving the counties from a heavy burden which they now pay to sustain those imprisoned. The convict can as well be made to perform labor for his own support in your counties as in your State Prison. The individual convicted for the first offence; the youth; the juvenile offender; or where the circumstances of the case seem to require at the hands of the jury of the county, that the imprisonment should be in the county jail;-your prisoner thus situated will find, daily or weekly, kind parental advice, and the watchful care of those who take an interest in his welfare; and our prisons will become what they should be,-places not only for punishment but for reformation.

The State has an interest is what in called the Georgia Lands, situated in the counties of Laurens, Montgomery, Telfair and Pulaski, in the State of Georgia; about three hundred thousand acres; which cost the State in an arrangement with one of the Banks east, in settling an outstanding debt due us, the sum of Two Hundred and Forty Thousand Dollars. They lie principally upon the waters of the Ocmulgee and Altamaha.

By virtue of a joint resolution passed on the 16th day of February, 1849, a contract was made with my immediate predecessor, by which a sale of these lands, without notice, was made to Martin R. Green, and a conveyance executed, for the sum of one thousand dollars. It is to be regretted that any sale was made of such a large body of lands by the Agent of the State, without reserving the right to the Legislature to confirm or reject the same. It is difficult to determine what is the value of these lands; but from information received the past season, I have reason to believe that a large portion are worth from fifty cents to one dollar per acre.

Your officers of State, in view of the quantity of land and their cost, from the evidence before us, not necessary to be here mentioned, desiring to preserve them from passing into the hands of innocent purchasers, from Mr. Green, without notice, after mature examination, were induced to offer the interest of the State in these lands, for sale. Due notice has been given, and several propositions have been made, some in the way of inquiring as to the title; others as to the value. No sale can be effected so long as the outstanding contract and deed remain as they are. It would require more space than is allotted for this communication, to give the full history of this transaction, and the evidence upon which your Executive acted in offering these lands again for sale; all of which, will, with pleasure, be communicated to your body, or to any committee to whom the subject may be referred.

It is alike due to Mr. Green-to all concerned-that you should thoroughly investigate this subject. You should, upon that investigation, either confirm said sale, and direct the surrendering of all

the title papers, or you should authorize a suit to be brought to set aside the conveyance. I have no hesitation in recommending the bringing of the suit, believing that the State had better receive nothing than to take the one thousand dollars.

The widow and Executrix of the late Edward J. Black, of Georgia, has presented a claim for a thousand dollars against the State, by virtue of a contract made by your Agent of State and her deceased husband, relative to these lands, which requires your investigation.

6.

On the 13th day of October, 1849, arbitrators appointed by my predecessor by virtue of a special act of the Legislature, entitled An act for the relief of Patrick McGinley," passed February 11, 1848, made an award in favor of said McGinley, against the State of Indiana, for the sum of $21,143 00; which said award, together with the papers in the cause, as well as the proceedings, were filed in the Clerk's office of the Floyd Circuit Court. On the 13th day of November, 1849, two warrants were drawn by the Auditor of State upon the Treasurer,-one for the sum of $11,000 dollars; the other for $5,000,-both payable on the 1st day of March, 1850; which warrants were drawn upon the duly authenticated copy of said award, from the Clerk of said court; the papers on file in said office showing that said McGinley agreed to release the sum of $5,143 00, that portion of said award over the sum of $16,000,00, upon the condition that no appeal was taken in the cause, and which sum of $5,143 00 so released, was to be appropriated to the payment of costs, expenses, &c.

On the 5th day of December, 1849, my duties as Executive commenced. The 6th day of February, 1850, being on a visit to the State Prison at Jeffersonville, I called on the Clerk of the Floyd Circuit Court, and requested him to furnish me the papers in the case of McGinley. For the first time, I became acquainted with the fact, that at the time of the rendition of the award, Mr. Bullett, the attorney for the State, and the only person that was authorized by the act aforesaid to appear for the State, had prayed an appeal to the Supreme Court in the cause, and that the same was granted. A copy of the record in the cause was obtained, and legal gentlemen consulted, who made an affidavit of the facts of the case, giving the dates, &c. Upon the application to the Supreme Court, they directed the clerk to docket the cause as an appeal. The cause is now pending in the Supreme Court. The warrants are yet outstanding and unpaid. They are unknown to our law, and issued contrary to the uniform practice, being payable at a future time, thus giving notice to all of their character.

The course adopted in this cause, has been with the concurrent action of your officers of State; and I sincerely hope, that if the highest judicial tribunal in the State; the one that decides the rights of our citizens, has not jurisdiction of this cause, so as to decide the same upon its merits, that you will adopt such measures as will give

that Court ample power. If the Supreme Court of the State shall decide that this claim of McGinley is correct and just, we should pay not only the sixteen thousand dollars, but the last dollar, with interest, that is adjudged to him. If it should be the pleasure of your body to pay these outstanding warrants, you will remember that no payments can be made, unless the tax is levied and the money collected. We have solemnly pledged four-fifths of our State revenue to pay our interest; and the remaining one-fifth is set apart to pay the ordinary expenses of the State. This being an extraordinary demand upon the Treasury, it can be met only by increased taxes, or by virtue of a loan.

From information received from our Senators at Washington, we shall not receive any portion of the three per cent. fund due us, until some action of Congress is had upon the subject.

Your attention is called to the report of the Quarter Master General; particularly, as to the propriety of providing a building for the safe keeping of the public arms.

The report of the Agent of State, exhibits the wisdom of the act of the Legislature at its last session, in the great reduction of expenditures in that department. The suggestions contained in the report are worthy of your consideration.

A citation has been served upon me in the suit of the Vincennes University against the State of Indiana, on a writ of error to the Supreme Court of the United States, from the Supreme Court of this State. It devolves upon you to provide in what manner the rights of the State shall be represented in this cause.

In pursuance of the discretionary power given to the Auditor of State and myself, settlements and compromises have been made with the lessees upon the Central Canal, by which about $4,400 will be realized; the repairs and incidental expenses the past year, have been about $1,250. A suit that was brought, is yet pending in the Supreme Court.

Due notice was given and a sale effected of that portion of the canal lying north of Morgan county. The sale was made to George G. Shoup, John S. Newman and James Rariden, for the sum of $2,425. That portion of the Canal lying in Morgan county was sold to Aaron Aildredge for the sum of six hundred dollars. These sales are subject to be confirmed or rejected by you. I have no doubt that it is to the interest of the State to confirm the sales, and. recommend that you take that course. The sooner the State is entirely disconnected from all public works, the better.

The Convention elected by the people to form a new Constitution for the State is still in session, and will probably not close their labors for some weeks.

The appropriation for the payment of the Convention is already exhausted. It will devolve upon you to make further appropriations for this object.

As the amount collected by the tax levied the past year will not be sufficient to pay the additional expenses of the Convention, I suggest that you anticipate the revenue of the coming year, (the same rate of taxation being continued ;) by a loan for this purpose, as also for the payment of the July interest on our public debt. I have no doubt but that the succeeding January interest will be promptly met by the people through their collectors.

It is your duty at this session to apportion the State into Senatorial and Representative districts. Public opinion seems to demand a reduction of the number in both houses. As to the character of our legislation, quite as much may depend upon the capacity of legislators, as upon their number. Able men will devote themselves to the public service for two reasons chiefly; honor and compensation. Taking into view the condition of our State, the character of our people, and the vast interests which they have at stake in the establishment of a correct system of domestic policy, it would seem that there is too great a difference between the honors and emoluments of the State and National governments. The public business may undoubtedly be disposed of with more system and order, and every interest of the State may be fairly represented and properly protected, by a House of Representatives of seventy-five, and a Senate of thirty members; provided their election shall be made under a system liberal enough to secure to the State the services of her best and ablest citizens.

The subject of the colonization of the free blacks is now beginning to receive that attention which its importance demands. The circumstances which surround us, are pressing our people to look into this subject in the right light, and in a proper spirit.

Our southern brethren are making rapid movements towards abridging the privileges of this class, even to banishment. We in the north are adopting extraordinary means for removing them, by prohibiting them from holding property, excluding them from the protection of the laws, and denying them any rights whatever.

While all this is going on, our better nature, the common sympathies of all men, are beginning to ask these important questions: What is to be the end of all this? Is there no remedy? Is there no cure for this evil?

In the midst of all this excitement and confusion, the light breaks in upon us, which points conclusively to colonization as the only remedy. The infant colony of Liberia, recognized as one among the nations of the earth, begins now to attract the renewed attention of all men, who desire to see an entire separation of the two races. In this great struggle for the separation of the black man from the white, let Indiana take her stand; put her agent into the field. Her citizens are ready. Yea, they are willing to contribute