cipline of the prisons, I deemed it advisable to request the Superintendent of the Albany County Penitentiary, whose long, intimate and successful connection with penal institutions peculiarly qualified him for the duty, to visit the State prisons, to examine into their police and fiscal management, and to report the result of his observations to me in writing. This he has done. I desired him to make suitable inquiries in regard to the alleged severity of punishments inflicted at Sing Sing, and respecting the administration of the affairs of the Lunatic Asylum connected with the prison at Auburn. I also requested him to make such inquiries as would enable him to determine if the recent murder committed at Clinton prison was the result of any want of proper foresight, or of any insufficiency in the rules or discipline of the prison. The result of his examinations, though necessarily only partial, shows the need of a commission of the character above named. As will be seen below, the actual receipts are fully a quarter of a million of dollars less than the expenses of the prisons. This difference is increased of course beyond what it would be in ordinary times, but is due in a great measure to the mode of contracting the labor of convicts. I would not be understood as underrating the ability or faithfulness of the several officers to whose hands are confided the general and local administration of prison affairs. They have exhibited much interest and have put forth active efforts to preserve order and to render the prisons productive; but the disciplinary and fiscal systems are of many years' standing, and every test proves them to be very faulty. It does not appear possible that able-bodied men, of ordinary intelligence, sentenced in every case for at least two years, and occupying quarters valued at more than a million and a half of dollars, should be unable to meet their support. The subject is certainly of a nature to invite the most scrutinizing attention. It is my deliberate opinion that,

4 See special message of March 14, for Superintendent Pilsbury's report.

when the Constitution shall admit of the change, it will be wise to substitute for the three inspectors of prisons one superintendent, to be appointed by the Governor and Senate, leaving to the wardens the duty, under proper regulations, of contracting for the convict labor and of controlling the government and internal management of the respective prisons."

Discipline, and reformation of the convict, are questions of primary importance in our prison system, and should engage the most serious attention. The subject of finances, though but secondary in comparison, is entitled, especially at this time, to the most careful consideration.

The total expenditure for the prisons during the last fiscal year, including forty-four thousand one hundred and seventy-nine dollars for building and permanent repairs, was three hundrc 1 and eighty-seven thousand one hundred and forty-three dollars and sixty-five cents. The amount of earnings paid into the State Treasury was but ninetytwo thousand nine hundred and thirty-nine dollars and eleven cents. A large sum, however, remains due from the contractors for convict labor. Should application be made to you, too much caution cannot be exercised in entertaining the subject of releasing contractors. Serious injustice has heretofore resulted to the State from interference with obligations of this character. For details respecting commitments and discharges of prisoners, the special care and management of the prisons, I refer you to the annual report of the inspectors.

The three prisons have recently been enlarged, and it is expected that no further appropriations for this purpose will soon be required.

It has been suggested that a small percentage of the earnings of convicts be placed to their credit, and paid

5 A plan of prison administration under the supervision of a superintendent was adopted in 1876, and is embodied in the Constitution in article five, section four.

them on their leaving the prison. There is good reason for believing that future crime would often be prevented, if this were done. Many of the discharged convicts are without friends, and nearly all of them are dependent upon the labor of their own hands for support. Not unfrequently, before procuring employment, or their good resolutions have acquired sufficient strength, their slender means are exhausted, and they choose unfavorably between beggary and theft."

The following is a statement of the number of convicts in the prisons on the 31st of December, viz:

There were in the Asylum for Insane convicts, at Auburn, on the 31st of December, seventy-nine patients. With so limited a number of inmates, requiring a relatively large attendance of officers, the expenses of the institution, even with the strictest economy, will be proportionately large. In this connection, your attention will be called, in the annual report of the Inspectors, to a class of criminal insane, confined in county jails, whose mental condition deserves notice. I recommend you to make suitable provision for removing those of this class most seriously diseased to this Asylum, whom on the application of the district attorney, shall be ordered there by the presiding judge, to be treated at the expense of the respective counties.

6 Chapter 417, passed April 22, 1862, embodied a scheme of commutation for good behavior, including the payment of a limited amount to a convict upon his discharge.

The system of higher education in the colleges and academies of the State continues in uninterrupted operation; and, though the spirit of patriotism, always ardent in the schools, has withdrawn professors and students from the peaceful pursuits of learning to the defence of their country, the number of pupils has not been more reduced than it has often been by financial embarrassment in times of peace. In many of these institutions military companies have been formed, and the students have attained a high degree of perfection in military drill. This is especially true of the State Normal School. Its physical and disciplinary effect has been most salutary—in the former respect even superior to gymnastic exercises. I recommend that works on military tactics be introduced as text books into these institutions, and that drill be made a part of the exercises. To enforce the observance of these requirements, the income of the Literature Fund should be awarded with reference to the proficiency and attention given to this branch of education.

During 1861, the aggregate attendance upon our common schools was about the same as for the year 1860. The expenditure for school buildings and improvements, is in excess of the preceding year. The deportment, health, and future usefulness of the pupils, in preserving, and, if need be, in protecting the institutions and rights of their country, would fully justify me in recommending that male pupils above the age of twelve years be instructed in the elements of military science for a portion of the year in all the schools supported at the public expense, provided it be practicable. It may be so in cities and larger villages; but in country districts, its feasibility is doubted. The subject is worthy your attention.

The building for the People's College is yet in progress. Numerous applications from this and other States have been and are still being made for admission. It is ex

pected by the Trustees that all things will be in readiness for opening the institution next autumn."

The Annual Statistical Reports of the Secretary of State on pauperism, and on criminal statistics, will afford you valuable data on those two topics.

The Superintendent of the Banking Department will be able to present a very satisfactory account of his responsi ble trust. During the fiscal year there was a decrease of about $1,852,000 in banking capital, which at the close stood at $109,982,324. The aggregate of the securities held in trust for the free banks was $30,213,780.59, or an increase of $18,318; while the aggregate circulation issued to free banks was $28,360,482, or a decrease of $380,934. In addition to this, it appears that $464,661.32 in bonds and mortgages have been withdrawn, and government and state stocks have been substituted therefor. Since the close of the fiscal year, about one million dollars in securities have been added, and the circulation has been increased between eight and nine hundred thousand. It will appear that six banks suspended during the fiscal year, with an aggregate capital of $1,464,560. The securities held in trust for their circulating notes were sold by the Superintendent, and all their outstanding circulation, with the exception of that of one bank, is in process of redemption at par. On this, with a circulation of $51,554, there was a loss to holders of seven per cent.8

The Superintendent of the Insurance Department will submit a detailed account of the several insurance companies, located and doing business in this State. From this it will appear that, with a single exception, no failure of Fire, Marine or Life Insurance Companies has occurred during the past year.

7 Chapter 469, passed April 24, appropriated $10,000 to be paid to the trustees of the People's College at Havana, in Schuyler county, on complying with certain conditions prescribed in the act.

8 By chapter 62, passed March 27, incorporated banks were authorized to hold stocks of the State or of the United States.