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tm??Te the duty of the comptroller gen? eral to levy the supplementary tax if Deeded. It is "within your provinco to {prescribe the number of months dur? ing which the free schools shall remain open, and in case the taxes heretofore mentioned are insufficient to maintain ,themyou are required to levy such ad? ditional tax upon the property of the State as may be sufficient for such jpurpose. To provide a term of less than six months would be a failure upon your part to satisfy the great demand of our people for better common schools. Unless our youths are better prepared in these foundation schools the. thirst 'for higher education will bo slaked, and onr system of colleges will become topheavy and fall of its own weight. f All the net income to be derived by the State from the sale or license for Jthe sale of intoxicating liquors, all gifts to the State where the purpose is Sot designated, all escheated property, le net assets or funds of all estates or copartnerships in the hands of the courts of the State where there have been no claimants for the same within jthe last 70 years, and the direct tax fund, are set apart as a permanent school fund, to be eecurely invested, and the annual income shall be appor? tioned by the general assembly for the jpurpose of maintaining the public 'schools. This sum will be a large one, and it will be necessary'for you to pre? scribe the manner in which and by jwhom it is to be invested, as the Con? stitution leaves this doubtful. '. It is made the duty of the general assembly to provide for the division of jthe counties into suitable school dis? tricts, ob compact in form as practica? ble, having regard to natural boundtv pries, and not to exceed 49 nor he lets 4han 9square miles in area, etc. It is {impossible for your body to do more than leave this matter in the hands of jthe county, boards of examiners and lother. county school Authorities, en '(: joining upon them the execution of 4 ,;Jihis provision. fe&NAIi AND CHAIQTABLE INSTITUTIONS. The name of the lunatic asylum has foeen changed to the State Hospital for (the Insane. /" It is made the duty of your honora? ble body at your first session after the adoption of the Constitution to pro? jvide such proper and liberal legisla? tion as will guarantee and secure an ennual pension to every indigent or idisabled Confederate soldier and sailor of this State and of the late Confeder? ate St ateB who are citizens of. this State and oIbo to the indigent widows ,f Confederate soldiers and sailors, j 1 feel that it is absolutely unneces? sary for me to say one word in refer? ence to this matter to enable yon to realize your duty. Most of you are Confederate veterans, and those who are not are sons of Confederate sol? diers. Ii there is one thing dear to the hearts of South Carolin a, it is the memory of the lost cause. A . State that exhausted her all to maitaxn it ?cannot be ungrateful in her hour of prosperity to the indigent and disabled Veteran who stands as a living monu? ment of the principles which must fin glly prevail to perpetuate this repnb* c. Let your appropriation be, as' (the Constitution directs, proper and liberal. Having thus gone over in a cursory manner the various articles of the Constitution, it will he seen that the legislation required of you at this ses? sion of your honorable body may he ?classified as follows: . 1. An act to regulate the right of suffrage and for regulation of elec? tions. ? 2. An act defining and protecting the homestead for heads of families and kor persons not heads of families. ' ' 3. An act to provide for the incor? poration of cities and towns and for changing, amending or altering the - {charters thereof. ! 4. An act to provide for the incorpo jration of railroad, telegraph and other transporting and transmitting compa? res. t 5. An act to provide for the incorpo liion of banking institutions. : 6. An act to provide for more speedy ^administration of justice f county courts or increase of circuit judges) and for jthe interchange of circuits* among cir j? cnit judges aed for change of venue. : 7. An act to provide for the appoint? ment or election of a commissioner to ?codafy the laws and define his duties, j 8. An act regulating- the formation of now counties. I 9. An act to provide a uniform as? sessment of property for taxation. ' 10. An act to provide the manner in jwhich claims against the State may bo rtablished and adjusted. There are other matters not so nr jgent that may well be continued until four next regular session. v It is my duty now, at the risk of try? ing your patience, to give you a fash Bight glance at the administration of rehe government during the past year. I would respectfully call your atten ition to the reports of the various {boards and heads of departments, (Which yon will find full and complete, land herewith transmitted to yon. 1 FINANCE AND TAXATION. I Upon my induction into office the deficit for the ordinary expenses for jthe government was $50,000, in the shape of a note of the governor and treasurer hearing interest at the rate of 7 per cent. This has been paid in full as well as all other obligations, and % am happy to inform your honorable Sbody that there in the treasury suffi? cient funds to pay the expenses of the Constitutional convention without any extra taxation npon tho people. An appropriation of said amount, however, (will have to be made by you, as this is jthe only way in which it can be drawn {from-the treasury. J By reason of tho extension of the |time for payment of taxes for the past Ifiscal year under authority of your honorable body, tho State treasurer und governor burrowed ?100,000 with iwhjch tQ njecfc the January 189 Gt Jn; , terest on tho public debt. I refused to pay interest to the brinks npon this amount or any amount borrowed by me for the State purposes, for tho reason that the State deposits all of her funds in such banks and receives no intorest thereon, and from a spirit of reciprocity I deemed it just. I secur? ed the money, I nm glad to say, with? out any serious protest from the [ banks, thus saving tho $2,121.69 in i terest paid out for the previous year. The following statement is given for yonr information showing tho amount of taxes received and disbursed, tho amounts of dispensary profits paid into the treasury, and the phosphate royalty over and above $75,000 placed in the sinking fund and applicable to the general account. The profits from tho dispensary up to the first of Janu? ary, 1896, when the new Constitution went into effect, will also be applica- ? ble to the general account. RECAPITULATION OP RKCEIPTS FOR YEAR ENDING OCTOBER 31, 1895. I Taxes...\..$ 845,708.54 Dispensary, credited dis? pensary account. 802,233.01 Dispensary for appropria? tion of act of December I 1892, refunded general 'account.. 50,000.00 Phosphate royalty. 93,308.71 Privilege tax on fertilizers 30,135.93 Official fees.... ????. 13,917.81 Commissioners* sinking fund. 1,300.00 Morxillfnnd. 21,000.00 Other special accounts... 3,162.39 Assessments for railroad commissioners. 8,828.62 Interest on sinking fund for the reduction of brown 41-2 per cents.. 3,019. SO Loans effected under acts 1893-94.......' 100,000.00 Prom other sources. 1,279,48 $1,971,892.29 Balance October 31,1804 203,256.24 $2,175,148.53 RECAPITULATION OF PAYMENTS FOR YEAR ENDING 31?t OCTOBER, 1895. Legislative expenses.$ 33,370 Educational institution & expenses. 225,038 99 Charitable, penal and sani? tary expenses. 130,511 60 I Interest on public debt and expenses. 269,140 05 State dispenenry. 750,323 58 Salaries Supreme Court, Circuit judges, solicitors. State officers, county auditors and supervisors, public institutions, etc.. 143,8U6 00 I Public printing. 19,607 52 I Investments for sinking fund for reduction of the Brown 4 1-2 per cents. under act 1892. 13,600 91 Pensions and special pen? sioner . 51,109 70 Maintaining militia, 1893 94 and 1894-95. 20,000 00 1 Direct tax fund and inter? est . 17,914 17 I Brown consols, due July, 1893, redeemed. 895 71 Eleotdon expenses. 18,549 73 Befund taxes and overpay? ments refunded county treasurers. 6,060 76 .Contingent funds and sta? tionery and stamps, ex? ecutive offices, Supreme Court and other officers. 7,205- 62 [Constitutional convention appropriation. 3,306 62 I Legal service in Coosaw Co. case and others. 5,950 00 I Loans under act, 1893 and 1894 paid, with interest. 152,121 69 On other occounts.<.. 36,459 68 $1,902,952 5? ! I Balanoo 31st October, 1895. 272,196 01 $2,375,348 53 Statement of general account for I November and December, 1895. RECEIPTS. On account of taxes. November.... $55,379 02 * December.... 196,113 02 -$251,492 04 On account of phosphate Royalty. (November.$ 8*5233 December. 1,450 00 December,*.... 1,846 59 - $4,158 92 On account of Transfer from Dispen? sary. November. 50,000 00 On account Litigation Attorney Gen? eral, November (refund). 147 31 On account Constitutional Convention. December (refund;. 103 90 Total receipts.$305,902 17 Cash balance Oct. 33, 1895 15,241 26 $321,143 43 Statement of general account for November and December, 1895: EXPENDITURES. SALARIES. November...$ 5,537 87 December... 683 40? $6,22127 COTINGENT FUND GOVERNOR. November.. .$ 263 36 December... 412 68? (.75 84 WINTHROP COLLEGE. .$ 1,550 00 November... 1.441 57 December... 3,441 57? 4,433 34 ?"PUBLIC PRINTING. November.. .$ 2,820 50 December... 4,480 74? 7.303 24 CONSTTJTIONAL CONVENTION. November... 866 36 December... 26,197 28? 27,063 64 ?'COUPONS AND STOCK INTEREST. November... 90 00 December... 43,322 41? 43,412 41 Contingent fund State house keeper, Novem? ber. 3 80 Expenses phosphate com? mission December... 65 54 Maintaining quarantine, November. 400 00 Litigation attorney gen? eral, November. 77 74 Repairs governor's man? sion, November.' 8 44 Eepair State house, No? vember. 2 60 Stationery and stampt comptroller general, November. 7 85 JLii^otujg State house and grounds, Novem? ber ........ 56 64 Books supreme court, November. 59 05 Documentary history of South Carolina, No? vember. 33 80 Blanks, etc., county au? ditors and treasurers, December. 1,368 73 Total expenditures. S 91,170 73 General uccount cash balance, Dec. 31, 1895 ?29.972 70 ?321,143 43 ?Pnbic printing ?1,911,13 only in? cluded in October estimate of appro? priation remaining unpaid. **Coupons prior to 1896 $146.25 only, included iu October estimate of appropriation remaining unpaid. RECEIFT8 PHOTTHATE ROTAI/PT. 1894. January.. $ 3,273 61 February. 1,008 94 March. 5,058 29 April. 1,950 00 May. 2,500 00 June. 31,864 84 July.... 6.009 50 August. 3,565 50 September. 11,454 53 Oetober. 3,390 52 November. 5,698 50 Decojiber. 7,524 57 1895. January.:.$ 2,885 25 February. 11,17150 March... 12,120 50 April. 3,460 50 'Aav. 5,540 74 Juns. 5,240 00 Jaly. 14,107 00 August. 5,129 00 September. 9,066 05 October. 11,364 50 November. 3,127 33 December. 8.320 00 $63,898 30 '93,532 97 $155,431 27 From the foregoing it will be seen that we commence the fiscal year with? out a dollar of indebtedness. It will be necessary for your honorable body to provide sufficient revenues to rnn the government for fourteen months instead of twelve as heretofore. This results from the change in the close of the fiscal year from the 3lBt of Octo? ber to the 31st of December under the new Constitution. Two-twelfths of the ordinary expenses of the State govern? ment will have to be added, therefore, to your levy for the next fiscal year in order to make up the deficit at once and remain on a cash basis, Under the provisions of the new Constitution evory dollar of outside revenue here? tofore going into the State Treasury to meet the ordinary expenses of the government except in phosphate roy? alty, which is now hardly sufficient to pay the fixed charge of $75,000 to the idnking fand, has been diverted to the school fund. The dispensary profits, the direct tax fund, escheated estates and all gifts to the State where the pur? pose is not designated go to this equal? izing school fund. We are entirely dependent upon a direct tax to raise funds to meot the ordinary expenses of tho government. I am satisfied, how? ever, we will be able to meet all de? mands with the same levy as for the past year, with the exception, however, of the two months additional. Had the funds of last year been left appli? cable to the ordinary expenses, the levy for the next year would not have exceeded three mills. The total tax? able property of the State for the past fiscal year is $169,448,941. This will be greatly increased another year by the large number of manufactories now in process of erection, and it is to be hoped by a more uniform system of ?assessment, necessary to be devised by your honorable body aB required by the Constitution/ Your present levy will be upon the assessment of 1894-5 for State purposes, but this is not true aB to ^county and schools. The funds arising from taxes of 1894-5 for coun? ty and school purposes were expended on contracts made against them before they were even collected. This condi? tion is unfortunate for the creditors of the counties, who are school teachers and contractors, who are compelled to disconnt their claims at exorbitant rates. To meet the difficulties arising from such a condition, I would respect? fully suggest that all contracts due or to become due, after expending the revenues of the year 1894-5, from any lawful cause prior to January 1, 1896, for county or school pur? poses be declared past indebted? ness and the County authorities be al? lowed to issue bonds to liquidate the same. The bonds could be made pay? able, say in ten years, with provisions for the retirement of a given number each year. The Counties of the State would thus be placed upon a cash basis and teachers relieved of great hard? ship. Much complaint has been made by the Comptroller-General against the present system of assessing the property of corporations other than railroad. I think the complaint well founded, as justice and equity demand uniformity in this particular. We have in ono County the stock of a bank that pays ten per cent, dividend assessed at seventy-fivo cents on the dollar. In an adjoining County a bank that pays eight per cent, divi? dends assessed at one hundred and eight on tho dollar. I would respect? fully suggest to your honorable body that its Stete Board ofBailrond Assce Bors be given jurisdiction over all banking and manufacturing companies in this respect. We would then have one central authority, with no local in? fluences that could bo brought to bear upon it. The same difficulty exists ns to the method of taxing insnrance com? panies. I would respectfully recom? mend that in lien of the present sye tem of taxing net premiums received in the various counties, -which is almost impossible to get at, a fixed per cent, of Buch gross premiums be required to be paid direct into the State Treasury, and, if necessary, the proportion ad? justed between the several Counties. Under the terms of the new Constitu? tion tho General Assembly is authori? zed to impose a graduated tax on in? comes and on professions and business occupations. It is hardly necessary for me to argue to your honorable body the justice of an income tax. It has been advocated upon every stump and throughout the entire Union as the most equitable system of taxing the rich in proportion to the poor. It is impossible to devise a system that will secure a just return of personal property. It has been the dream of legislators and statemen for years, and we are no nearer a solution of the problem today than we were a century ago. I believe an income tax will greatly assist in solving the problem. The present time will be known to his? tory as the great bond era in the histo? ry of our country. As wealth becomes centralized its power is brought to bear, with all its corrupting influences, to obtain nontaxablo securities. The citizens of towns and cities and corpo? rations require more protection from government than the rural population, and it is but proper that they should bear a greater proportion of its bur? dens. Under the law money invested in State and United States bonds is exempt from taxation. The stock of banks and corporations is exempt in proportion to the amount of their cap? ital invested in State bonds. This was intended to encourage the banks to as? sist the State in refunding her debt, and yet not one would come to the escue at the critical moment and we were forced to sell the bonds in for? eign markets. Since that time, how? ever, the banks and investors of the State have purchased them, paying large premiums for them, until now almost the entire issue is owned in Charleston and other cities of the State.. This capital can only be reach? ed by an income tax, and I respectful? ly recommend to your honorable body that a graduated tax be placed upon all incomes of one thousand dollars and upwards, and that County Audi? tors bo given full authority to hear ev? idence and resort to such other means as to your honorable body may seem expedient to obtain full and accurate returns. It will be necessary for you to provide for the payment of the sal? ary of the various School Commission? ers and other expenses for collecting and disbursing school funds out of the general taxes as the Constitution pro? vides. It will be unnecessary for the expenses of the State Penitentiary and the Dispensary to be paid oat of the general fund, ns both institutions are self-supporting. I would, therefore, recommend that in your appropria? tions for these institutions you speci? fically state that such amounts be paid out of their earnings to be deposited in the State Treasury forthat purpose. CHARITABLE AND PENAL INSTITUTION'S. It is always a pleasure to the Exe? cutive to visit the State Hospital for the Insane. This institution is managed and conducted in a manner that must satisfy the most hypercritical. While the amount of the appropriation asked for is apparently greater than that for the preceding year, a study of its de? tails will show that a reduction has been made in the per capita main? tenance from $123;37 last year to $116.76 for the present year. You will see from the recommendation of the Board of Regents that an effort was -made during the past year to pur? chase the Wallace property, consisting pf 108 acres of land, adjacent to the Hospital. The price agreed upon was $25,000, which the Regents expected to pay out of the sui i appropriated for the maintenance of the institution, covering a period of eight years. I could not concur in such an arrange? ment, for the reason that I believed it unwise to establish the precedent whereby the Board of any State in? stitution could increase the public debt of the State to such an amount without express authority from the General Assembly. If the Board can purchase sucn an amount of property upon no other authority than their own, they could to an unlimited amount involve the State in debt. I deem it advisable to purchase this property at the pres? ent time for the reason that it will be absolutely necessary to the needs of the institution in future, and I am sat? isfied to wait for that emergency would entail upon the State a considerable amount of increase in the value of the property, which is within the city limits. I have such great respect for the judgment and ability of the Su? perintendent and Treasurer of the in? stitution as to unhesitatingly endorse their recommendations. The urgent necessity for a brick building for tho confinement of the colored insane will. I am sure, impress itself upon your judgment. It is unjust, and, to bay the least, inhumane, to confine these unfortunates in a fire-trap or place of torture, as "the present quarters now seem to be. Tho brick have been manufactured and everything is in readiness for the builder. During the past year a vacancy occurred in the office of Second Assistant Physician, caused by the resignation of Dr. W. A. Kirby. It is a matter of congratulation to the State and to the institution that 1 was so fortunate in securing the services of Dr. Sarah Campbell Allen to fill tho vacancy. Dr. Allen is a Scuti Cnroliar. bj birti, and the able I mauner in which she performs tho duticBofthe position and tho love borne bcr by the female inmates proves the ?wisdom of placing a woman physician ia charge of these unfortunate patients of her own sex. I commend to your careful consid? eration the carefully prepared and in? structive report of the Superintendent of this institution. DEAF AND BLIND ASYLUM. This instituion continues to be ad? mirably conducted, and with less com? plaint than any institution under our government. The remarkable record as to the health of the students made by the institution may be well consid? ered by the management of other in? stitutions in the State, the cost per capita for medical attention, etc., being only 36 cents, not a single case of serious illness having occurred dnr ing the entire year. This is attributed in a large measure to the kind atten? tion and motherly care given by the Matron of the institution. The Super? intendent asks your honorable body for the following appropriation: For support.$17,500 For repairs. 1,000 For insurance. 874 For electric light plant and laundry machine. 4,620 Euilding for colored pnplis. 8.000 As to the last two items, I am not prepared to recommend their appro? priation. The experience of other in? stitutions in the State with electric light plants has been rather a costly one, and I see no necessity for such a plant in this institution. The build? ing for colored pupils may be allowed to remain as it is until the the finances of the State can afford a new one. I would respectfully recommend the granting of the other appropriations asked for. It will be noted by your honorable body that the Faculty of the institution has been enlarged dur? ing the year and tLe institution gener ollv improved. SINKING FUND. Under the refunding act, $75,000 per annum of the receipts from phos? phate royalty is required to be set apart as a cumulative sinking fund. I found cash on hand to the credit of this account, from the last fiscal year, $25,278.23 uninvested, and drawing no interest. The governor, State treasu? rer and attorney general were made a committee for the purpose of investing this fund. After trying the markets of this State and the principal cities outside of the State, it was found that State bonds could not be purchased for less than 108 and subsequently for 110. This fund being cumulative, and the commission having no authority to cancel the bonds a? purchased, I deem it unwise and inadvisable to purchase securities whose price was higher than par, as by so doing we would lose so much of the sinking fund as was paid out for premiums. I immediately ar? ranged with the banks in which this fund was deposited requiring them to pay four per cent, interest from the time the deposits were placed with them until checked out by the committee. We have since received from the phosphate royalty during the fiscal vear just closed $93,308.71. This is" in bank subject to check of the commission and drawing interest at the same rate. You will readily see that this is a more advantageous arrangement for the ac? cumulation of the fund than its invest? ment in bonds at a premium of 10 per cent. Some legislation is necesavy in order to enable the commission to advantageously invest the fund. I would therefore respectfully recom? mend the following section of the Constitution of the State of Georgia: "Section 14, article VII. The general assembly shall raise by tax? ation each year, in addition to the sum required to pay the public expenses and interest on the public debt, the sum of $100,000, which shall be held as a sinking fund to pay off and retire the bonds of the State which have not yet matured, and shall be applied to no other purpose whatever. If the bonds cannot at any time be purchased at or below par. rhun the sinking fund herein provided for may be loaned by the governor and treasurer of the State; provided, the security which shall be demanded for said loan shall consist inly of the valid bonds of the State, etc." If this is made the law of our State, I am satisfied we can readily obtain from banks of the State 5^1 per cent, interest upon loans secured by a deposit with the State treasurer of the valid bonds of the State; indeed, I have of? fers already from the best bankers of the State to that effect. This arrange? ment is better for the State than the ownership of the bonds, for the reason, as-1 have ?bet?re stated, wo wonld be compelled to pay a premium of 10 per cent, and upwards for the purchase of the bonds in open market with a loss to the fund in proportion to the amount of premium paid and the low rate of interest received and the in? ability of the State to retire the bonds ander the law. Beside, as the bonds mature, the price invariably falls: and as the time for refunding the debt draws near, our sinking fund instead of showing an increase will show a decrease. I am satisfied the intention of the general assembly in making this fund cumulative was to secure its invest? ment in such a manner as to retire at the maturity of the bonds one-haif of the State debt. This can easily be ac? complished in the manner I have in? dicated. There seems to be some difference as to the construction of the statute reg? ulating delinquent taxes; as to when the same become liable to be forfeited to the sinking fund. I feel, however, that it is more apparent than substan? tial. There should be no conflict be? tween these two departments of the government, as it was intended that they should be mutually helpful to eatb. other. Tho law in reference to tho subject j;-: coint??etc end effoctiv.'. ? The system is an outgrowth of 22 years of legislative experimentation ami litigation of tax titles and its wis? dom exemplified by the work being done by the sinking fund commission? ers therennder. In this connection J would respectfully call your attention to the first eight pnges of the report of this board. The act of 1892, as it is being vigorously executed by the sink? ing fund commission, acts as a sum? mary and effective gleaning machine and collects and levies past dne and unpaid for eight months. This feature of the law annually saves to the State thousands of dollars that would other? wise be uncollected and is a great aid in collecting county and school funds. It was not intended, however, that any robbery should be made of the taxes collected or in process of collection applicable'to the ordinary expenses ol the government. Any other adminis? tration of the law would work a hard? ship and inevitably create a deficit in the sum necessary for the purpose of the government. No' legislation in reference to this matter is required, as I am sure the good sense and judgment of the offi? cers executing the law will bring haf raony. i'HOSPHATE INTEREST. This industry has never recovere 1 from the cyclone of 1893, and I fear never will. We have no longer a mo? nopoly of the business, and the dis? covery of phosphate rock in Florida, Tennessee and Algiers has made com? petition very lively. The report oi Phosphate Inspector Jones is gloomy and discouraging, but I fear Mr. Jones takes: too pessimistic a view of the sit? uation. The State received from Januarv, 1894, to January 1895, $62,898.3'?, which was also placed to the account of the sinking fund. From January, 1895, to January, 1896, the receipt* were $91,532.27, which was also placed to the credit of the sinking fund. Be? sides there was $4,158.92 received in November and December last, which was placed to the credit of the general account in the treasury, making in all $95,691.19. There is now due and un? paid by the phosphate companies the sum of $14,019.55 royalty upon rock actually mined and sold. This added to the above amount gives$109,710.74, the amount that should have been re? ceived from January 1st, 1895, to Jan? uary 1st, 1896, representing an output of 219,420 tons. The phosphate roy? alty received for the fiscal year ending October 31st, 1892, was $152,280.40. This upon a royalty of $1 per ton. Up? on the same royalty we would have re? ceived for the past fiscal year $219, 421.48. It must be taken into consideration Lhat the State receives royalty only from rock actually sold and delivered, and not from that actually mined. We are dependent upon the honesty of the companies and the ability of the phos? phate inspector to ascertain the amount paid and received for the rock for our estimate upon which to claim royalty. Last year was a disastrous one for phosphate and fertilizer companies everywhere, caused by short crops and still shorter profits. Unless the situa? tion has greatly changed since my in? spection of the phosphate interests last spring, I am satisfied it would be un? wise in your honorable body to accept the recommendation of the phosphate inspector to reduce the royalty to 25 cents per ton. I have heard of no complaint from the phosphate compa? nies on account of the royalty, and I am satisfied it is low enough for the present at least. There is now due and unpaid by phosphate miners royalty of the past and previous years to the amount of $18,094.70. This amount should have been paid into the treasury, and I have impressed upon the officers charged with its collection the necessity of re? quiring its prompt payment. The companies are under bond, however, and no danger need be feared as to it? ultimate payment. .STATE PENITENTIARY. The report of the Superintendent and board of directors of this institu tution shows it to be in a healthy, suc? cessful and sound financial condition. The number of prisoners confined during the last fiscal year is 72 less than for the previous year. This is due to the sentencing of short-term convicts to the county chaiu-gang. It is to be hoped that the number so sentenced will increase to such on ex? tent as to allow all convicts sentenced to the penitentiary to be employed within the walls or upon the farms operated by the State. The practice of leasing convicts to private parties is objectionable to the people of the State and liable to be abused. In one case, in the county of Oconee, I was compelled to order out the militia for the purpose of protecting a convict who had been assigned to a private contractor within that county. The people became indignant at the liber? ties allowed a convict who deserved the severest punishment. I desire to say, however, that this waB caused by a guard acting without authority and not from any order of tho superinten? dent. When called to the attention oi the authorities of the penitentiary the convict was promptly conveyed to and confined within the walls of the prison. I regret to see a want of harmony among the board of directors, as will appear to yon from the minority re? port submitted by Mr. Willoughby. The matters submitted in such report were called to my attention, and I met with the board in order to see that every means and such information as the books afforded were given the., board for their direction. Mr. WifcS loughby was appointed a committee oi 1 one to inquire into the contracts made by the superintendent and to corres? pond with dealers throughout the United States with a view of obtaining supplies for the institution at as low a orics as possible. I have not recoivol