I present to you the following statement as to the condition of the State, and my recommendations:

There was received from all sources during the fiscal year ending September 30, 1908, the sum of $51,780,985.23.

Of this amount $18,298,457.43 were realized from the sale of canal and highway bonds, and upon canal debt sinking fund and trust fund accounts, as follows:

Proceeds of sale of barge canal bonds....
Proceeds of sale of bonds and temporary bonds

for highway improvement

Principal and interest on bonds and judgments for canal debt sinking fund and interest on deposits of same

$5,039,611 70

5,950,000 00

5,169,633 65

Trust funds, including twenty-year court and trust funds .

2,139,212 08

$18,298,457 43

Apart from miscellaneous income (amounting to $2,146,275.08) the receipts from taxation showed a decrease of $1,259,597.85 as follows:

Decrease for year ending September 30, 1908. $1,259,597 85

There were disbursed during the last fiscal year $40,767,480.87 as against $39,012,687.28 in the preceding year. Of these disbursements $15,377,341.45 were for canals, highways, trust fund transactions, forest purchases, and redemption of Adirondack Park bonds, exceeding similar outlays in the previous year by $851,732.92, as follows:

The available balance or surplus on September 30, 1908, amounted to $12,857,784.06, a decrease of $820,354.41 as compared with the surplus at the close of the year before.

By reason of the issue of bonds for canal and highway purposes the State debt has been increased to $26,220,660, to wit:

The sinking funds for the canal and highway debts amounted on September 30, 1908, to $15,500,494.14, the residue of the debt in excess of sinking funds being $10,720,165.86.

ECONOMY AND PROGRESS

The growing demands upon administration and the just requirements of our institutional work admonish us to practice the strictest economy. Care in making appropriations and in scrutiny of new proposals for outlays should not be relaxed; and there should be renewed determination to reduce expenses wherever this can be accomplished without injustice or loss of efficiency and to enlarge our commitments only in cases where the exigency is clearly revealed by thorough examination. Wasteful expenditure inflicts a double wrong. It not only is an unwarrantable use of the people's money, but is an unjust

withdrawal from the means available to meet pressing needs. Economy is the essential condition of progress.

CELEBRATION OF DISCOVERIES

We celebrate this year with sister States the Ter-Centenary discoveries of Samuel de Champlain and Henry Hudson, and suitable provision should be made for worthy commemoration. This, however, should not be limited to mere ceremonial, but in our schools and in our voluntary associations we should take advantage of this opportunity to kindle interest in the story of our development. While the formal celebrations will be confined to the scenes of the discoveries, appropriate meetings under local auspices should be held throughout the State and these interesting occasions should contribute powerfully to the re-enforcement of the patriotic sentiment of the people.

OUR FORESTS

During the past year strong impetus was given to the movement for the conservation of our natural resources by the action of the President in calling a conference of the Governors of the States. The people of this State may congratulate themselves upon the measures they have already taken for this purpose. But much remains to be accomplished. Our Forest Preserve now consists of 1,655,760 acres, of which 107,310 acres were purchased or contracted for during the past year. These purchases should be extended as rapidly as prudent use of our available means will permit.

It is idle, however, to extend the State's holdings unless we take proper measures for their protection. The serious menace of forest fires has received most unfortunate illustration during the past season. More than 177,000 acres of public and private lands were burned over and it is estimated that the actual pecuniary loss, for the most part in standing timber, was nearly $650,000. But the serious damage, apart from the destruction of timber, which was wrought in the retardation of new growth defies estimate. We may find some comfort in the record of improved efficiency of the department as shown in the Forest Commissioner's report. It appears by

comparison with the year 1903, the period of maximum fire loss, that with only one-half the number of fires, about 500,000 acres were then burned over and that the pecuniary loss was nearly $900,000. But the measure of protection is still, as our recent experience shows, far from adequate. We should have a more effective system of patrol. The number of fires caused by the use of coal in locomotives makes it necessary, if other precautions are insufficient, that railroad companies should be compelled to use a different fuel. I also concur in the recommendation of the Commissioner that proper provision should be made for the suspension of hunting privileges in time of drought. All other reasonable measures should be taken to prevent fire.

The conservation of our forests is so essential to the maintenance of our water supply and to the health and industrial activities of the people, that the police powers of the State should be used to secure the proper regulation of forests held in private ownership, as for example by preventing the cutting of trees under suitable dimensions. It is also important that fallen trees and accumulated debris should be removed so far as practicable, and with respect to this the State should set an example.

Our present constitutional provision, in so far as it prevents the proper care and nurture of our forest preserve, interferes with its own object. The time must shortly come when, no longer having reason to fear the grasp of the selfish hand and having settled the inviolability of the public interest in our priceless forest possessions, we shall make possible their scientific protection and their proper utilization for the public benefit. We may thus not only secure needed advantages in safeguarding our streams and industrial power, but we may also properly promote the health and enjoyment of the people. We shall not realize the full benefit of these great resources until we not only preserve our forests by intelligent treatment, but also by means of suitable roads and wellkept trails we make our mountain pleasure grounds, under wise regulation protecting woodland and nature's beauty, more accessible to our people and render available to the many the invigoration and the inspiration which few may now enjoy.