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ing much time and expense to remove, have occurred, effectually
suspending for the present, all navigation.

The company now heavily encumbered with debt, appears to
be without sufficient means, or credit, properly to prosecute the
work, and its heavy losses and repeated disasters seem to have
dampened the ardor and destroyed the hopes of the warmest friends
of this great but most unfortunate enterprise.

Several propositions were made to the Legislature at its last
session, for the disposal of the entire State's interest in this work.
One was, for its transfer to the preferred stockholders, or compa-
nies representing them, on certain conditions. Another, for its
sale to a Northern company, who proposed (of course) to assume
all liability to the preferred stockholders, and to give the State in
addition $1,000,000 for its interest in the work. These and other
propositions failed of acceptance, either because the sum named
did not meet the views of a majority of that body, or because the
proposals were presented too late in the session to give proper time
for the consideration that its importance demanded.

In view of the present condition and prospects of this company,
and of the series of disasters which has marked its career for so
many years, should the offer to purchase the State's interest be
renewed, and no constitutional objections to the measure be found
to exist, after the precedent established in 1853, by the sale of the
State's interest in the Susquehanna Rail Road Company, I do
not hesitate to say that in my judgment the State would be great-
ly benefitted by the sale of this work at an equitable valuation.

This great work has been completed mainly by the resources of
the State, and the State is really more interested in the steady and
uninterrupted operation of the canal, than in any revenues she
may in future receive. The probability of the more efficient and
successful prosecution of the work in private hands, possessing the
requisite means to carry forward the enterprise, and governed by
a permanent policy in relation to it, and thereby promoting the
trade and business interests of an important portion of the State,
are considerations to be viewed in close connection with the mea-
sure, and decided as your judgments may dictate.

THE FINANCIAL CRISIS.

The universal prevalence of a most serious monetary revulsion,
which has involved chartered institutions of our own State, in a
direct breach of faith towards the people invites remark from me,
and challenges decisive action on your part. I do not feel at
liberty, to occupy your time and attention with an extended re-
view of the causes which have led to such sudden and wide
spread disaster as we have recently witnessed. They are, how-
ever, distinctly to be seen, and comprehended by intelligent men.
A condition of life, vitiated by the utmost extravagance, has been
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