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a considerable period must elapse before the census can be completed and published under ihe superintendence of this department, I can only refer you, in the mean time, to the re- • turns, &c., deposited with the clerks of the state courts.

With regard to the boundary, referred to in your letter, it may be observed, that there is but a small portion of it joining the frontier of Michigan, not established. If you request it, authenticated copies will be made and transmitted, of the charts relating to the established boundary, in the department, at the expense of the state of Michigan. The accompanying documents, printed by order of congress, comprises the information possessed by the department, relating to the unsettled portion of the boundary, commencing at the foot of Neebish Rapids.

I have the honor to be, sir,
Your obedient servant,

JOHN FORSYTH.

Letter of John D. Pierce, in relation to the agricultural pro

ducts of Calhoun county.

(Copy.)

Marshall, November 10, 1840. Dear Sir-Agreeable to your request, when here, I proceed to give you a statement in regard to the products of this county, and the amount it would be likely to furnish for transportation, were the Central railroad completed. Of the importance of this road, no one can have an adequate conception, who is not somewhat acquainted with the vast capabilities of the interior and western portions of our state. It is not my purpose to enter the fields of conjecture, but to state facts, and conclusions warranted by them. This county contains 460,800 acres. Wheat is the great staple product of the county. According to the returns of the United States marshal, there was upon the ground, in the summer of 1840, 19,940 acres of this grain, the products of which could not have been less than 300,000 bushels. This number of acres is not quite one twenty-third part of the county. Three times this amount would doubtless be sown the coming year, was the railroad to be forthwith constructed. If we reserve 80,000 bushels for seed, and the supply of our population, it being about 10,000, we shall have for exportation 220,000, equal to 50,000 barrels of flour. This alone, at fifty cents the barrel, would give the state, in toll, $25,000. It is my firm conviction, that if the road could be completed to this place, by a year from this time, we could easily furnish it with one hundred thousand barrels for transportation, the year following. This one article would hence pay to the state, at the above named rate, $50,000; large quantities of pork, and other products, would also be added to the

above. According to the returns above mentioned, the county raised in 1840, of corn, oats, barley and potatoes, 480,019 bushels. Thus far I have said nothing of importations, and the probable amount to be derived from them, and the fare of passengers. But suppose $50,000 to be all the county would pay for all articles of export and import. This sum alone would pay at six per cent, the interest on $800,000, while the road itself, through this county, or from Jackson to this place, could not cost to exceed $350,000. It may be asked, can you flour such an amount of wheat, if raised? We have already in operation, thirty-two run of burr stones, and six more to be put in the mills now built. Twenty-five barrels per day, is certainly a moderate estimate. Suppose the thirty-eight to be in motion only sixty days in the spring, and the same time in the fall season, and the product would be 114,000 barrels of flour. The water power of this county alone, is capable of flouring all the wheat that can be raised in five such counties, and then be time to spare for other purposes. I hardly need to add, that the people of this section feel a deep interest in this great work, and that they rely with confidence, upon your recommending such a course as will secụre its immediate and successful prosecution. Respectfully, your obedient servant,

JOHN D. PIERCE. His ercellency William WOODBRIDGE, Governor of Michigan:

We, the undersigned, fully concur in the foregoing statement of Mr. Pierce. (Signed,)

ISAAC E. CRARY,
SIDNEY S. ALLCOTT,
MARVIN PRESTON,

JOSEPH C. FRINK.
Marshall, November 10, 1840.

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[No. 2.]
Annual report of the Auditor General.

AUDITOR GENERAL'S OFFICE,

Detroit, December 20, 1840. The undersigned respectfully submits to the legislature, the following report:

By a joint resolution of the legislature, at its last session, “ the auditor general was required to open a set of books, exhibiting the appropriations made by the legislature, from the period of the organization of this state, together with the payments thereon." From a slight examination, it was found that many of the fiscal transactions of former years had not been

entered upon the books of this office, and that but few vouch-
ers for the warrants which had been issued, had been retained.
It had been the practice to pass the voucher, with a warrant
written upon it, into the hands of the treasurer, thus leaving
this department destitute of the evidence of payment. In or-
der to carry into effect the foregoing resolution, it becomes ne-
cessary to transcribe the former books, as well as the books of
the treasurer, and also to examine all the files of both offices.

It was also deemed essential to a correct exhibition of the
finances of the state, to open a set of auxiliary books for this
office, showing the sources from which the revenue is derived,
and the objects for which the same is applied.

Some progress had been made previous to the adjournment of the legislature; but in consequence of the increased amount of labor imposed upon this department, it became necessary wholly to suspend the work until late in the season. The consequence has been, that sufficient time had not been found for so thorough a rëexamination of the books as was desired. It is, however, believed that no error will be found in a future review, which will hereafter be made, materially to vary the result.

The settlement of claims against the state, heretofore sus-
pended for want of appropriations; the return of another year's
delinquent taxes; the adjustment of the accounts of the seve-
ral county treasurers, together with the numerous applications
for statements of taxes due, rendered necessary not only the
suspension of the work, as above stated, but also the increase
of the number of clerks, beyond the limit fixed by law. The
claims for this additional service have been paid from the con-
tingent fund, upon the order of the governor, and will be by
him accounted for.

The treasury had been overdrawn, at the commencement of
the fiscal year, excluding the amount which had been deposit-
ed in the state bank, $58,037 06.
The receipts for the year amount, as per ab-
stract No. 1, to

$1,203,448 83
The payments and transfers amount, as per
abstract No. 2, to

1,143,015 80

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Leaving in the treasury the sum of

$2,395 97 Before proceeding to give a view of the several funds, it is proper to remark, that the balances stated in the last annual report, vary from those stated in this, in consequence of the fact that several items which were improperly charged to one fund, have been transferred to another in the new books; warrants to nearly the amount of the deficit in the bank fund, had been entered in the general fund.

But the principal variation arises from the deduction of the sum of $489,365 81, the amount stated in the former report,

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as deposited in the Michigan state bank, from the funds; the same having been adjusted by the commissioners appointed for that purpose by the act of April 1, 1840.

The aggregate balances, now reported, do not vary in any other particular from those contained in the last report.

The general fund was overdrawn at the commencement of the fiscal year,

$2,987 59 The receipts of the year amount, as per abstract A, to

114,000 57

$111,012 98

The payments and transfers, as per abstract

B, to

141,485 34

Leaving a deficit of

$30,472 34

By reference to a statement of the balances No. 3, thus deducted for deposits in the State bank, it will be seen that this fund was overdrawn $21,161 43. The effect of this is to diminish the internal improvement fund to the same amount.

If from the payments made during the year on account of this fund, a sum be subtracted equal to the amount paid for appropriations previously made, and for prëexisting claims authorized to be paid by the laws of the last session, the remainder will constitute the actual expenditures of the year. I have no means of ascertaining precisely this amount, but have sufficient data to show that the expenditures of the year have fallen somewhat short of $75,000,

In estimating for the expenses of the year, no notice was taken by my predecessor of these balances, or of the numerous outstanding claims against the state.

In estimating for the future year, I have presented all the balances due by virtue of appropriations heretofore made, and have assumed that claims of no great amount exist unliquidated against the state, which will be chargeable to this fund.

The bills for printing, so far as the "rates are fixed by law," and the work has been done by order of the legislature, have been paid. I have therefore, stated in my estimate of expenditures, which will be found in the appendix, marked No. 4, the sum of $10,000 as the maximum for outstanding claims.

The estimated amount of receipts for specific taxes, is $8,000, which, deducted from the amount as above stated, leaves the sum of $91,624 92 to be provided for, in addition to the

It must be apparent, however, that the accuracy of this estimate will depend much upon the length of the session of the legislature, and upon the sums which may be appropriated during its session.

present deficit.

The internal improvement fund was overdrawn at the commencement of the fiscal year,

$69,531 33 The receipts of the year amount, as per abstract C, to

953,893 26

The payment and transfers

" D,

$884,361 93 906,642 21

Leaving a deficit of

$21,280 28 To meet this deficit and such outstanding claims as may be presented, there remains the sum of $102,812 50, the residue of the April instalment.

Under the provisions of the law of last session, "authorizing the anticipation of certain instalments of the five million loan, I have issued to the Bank of Michigan, drafts for the aggregate sum of

$605,455 00 The amount reserved for interest on the state stocks, is

327,470 00 Leaving the above balance of

102,812 50 I also sent forward a draft for that portion of the loan due by the Morris canal and banking company, which was protested and returned unpaid.

All the claims against the state on account of this fund, have been paid on presentation, so far as appropriations were made. Numerous estimates have been presented by contractors and others, upon the Southern and Central roads, since the appropriations were exhausted, which have not been audited. of the amount of these estimates I can form no very accurate opinion.

In estimating, however, for this branch of the public service, I have assumed that $200,000 will be required for these estimates, and to discharge the state from liabilities for damages and for right of way; and that the sum of $30,000 must be added to the balance now remaining in favor of the Clinton and Kalamazoo canal, for the same purpose, making the sum of

$230,000 00 There remains due upon the iron contract, *60,000 00

The aggregate of the unexpended appropriations, as stated in abstract No. 5, is $287,120 31

From which should be deducted
the balances due from two of the
commissioners, to wit:
L. S. Humphrey, $30,115 40
Rix Robinson,

5,911 66
36,027 06

251,093 25

Making an aggregate of * This sum is stated at 886,000 00, by the late board of commissioners.

$541,093 25

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