to their modification so far as to leave the rate of interest to be fixed by agreement of the parties on commercial paper, and on loans secured by the mortgage or hypothecation of personal property.

TAXATION.

I respectfully call your attention to the reports of the Commis sioners appointed to revise the laws for the assessment of taxes heretofore made to the Legislature, and to the draft of a bill submitted by them in the performance of their duty. It is not denied that the existing laws for the valuation of property and the assessment of taxes are unequal, unjust and ineffective; that the valuation of real estate falls far below its actual value; that much the larger portion of the personal property of the State escapes taxation, and that the tax on mortgages of real estate not only prevents the introduction of capital from abroad, but is rapidly expelling our own heretofore loaned on such security, and transferring it to States in which no such tax is imposed. The objection to this tax does not come from lenders, but from borrowers, and from the owners of real estate, who find it difficult to procure money for improving it. In the city of New York, where there is a deficiency of dwellings, especially for the industrious classes, and where the population is for that reason crowded into narrow spaces, such an imposition is not only a serious obstacle to the extension of the city, but is in the nature of an excise on the health and comfort of its inhabitants. While real estate is known to be valued at one-third or one-half what it is worth, mortgages, where they do not escape the scrutiny of assessors altogether, are appraised at their full value, thus constituting a most unjust and oppressive distinction between two classes of property holders.

While New York has been clinging with a tenacity, for which it is difficult to account, to anti-commercial restrictions, Pennsylvania and New Jersey have been gradually removing them for the purpose of attracting labor and capital. The result of our

inaction and their progress in this respect is illustrated in a manner which should give us cause for grave reflection. During the last ten years the population of New Jersey has increased at the rate of 35 per cent, and that of Pennsylvania at the rate of 21, while ours has increased only at the rate of 13. The natural advantages of New York, especially for commerce, far exceed those of other States; but they are not great enough to enable us to contend successfully with the rivalry of neighbors quite as enterprising as ourselves, unless labor and capital are encouraged by laws as liberal as theirs. It vitally concerns us, therefore, to consider whether we can maintain our ascendency in population and wealth; whether we can succeed in retaining the title of preeminence, which we have borne with the consent of our cotemporaries for half a century; and whether we can preserve our reputation as an enlightened administrator of our own affairs, if we have not the wisdom and courage to cast off the antiquated clogs and badges of an obsolete civilization.

In conclusion, I cannot forbear to express my great anxiety to coöperate with you zealously and in perfect harmony in such measures as, in your superior wisdom, you may deem necessary to accomplish the objects of reform so imperiously demanded by our constituents. We come together sustained and honored by a larger majority than the people of the State have ever before given to their representatives. It is my sincere desire, and I am sure it must be yours, to respond to their confidence by maintaining the public credit, by reforming abuses of administration, by economizing the means placed at our disposal for the general good, by lightening the burdens of taxation, by cherishing the institutions and establishments which minister to the wants of the people, and by devoting our best abilities to the advancement of the prosperity of the State.

JOHN A. DIX.

No. 3.

IN SENATE,

January 7, 1873.

RULES AND ORDERS

OF THE SENATE OF THE STATE OF NEW YORK, ADOPTED JANUARY 19, 1872.

ORDER OF BUSINESS.

Rule 1. The president having taken the chair at the hour to which the Senate shall have adjourned, and a quorum being present, the Journal of the preceding day shall be read, to the eud that any mistakes therein may be corrected.

Rule 2. After the reading and approval of the Journal, the order of business shall be as follows:

1. The presentation of petitions.

2. Reports of standing committees.

3. Reports of select committees.

4. Messages from the Governor.

5. Communications and reports from State officers.

6. Messages from the Assembly.

7. Notices of bills.

8. Introduction of bills.

9. Third reading of bills. 10. Motions and resolutions.

11. Special orders.

12. General orders; but messages from the Governor and Assembly, and communications and reports from State officers, and reports from the committee on engrossed bills, may be received under any order of business.