From the Annual Statement of the Condition and Progress of the Wisconsin Phalanx, for the fiscal year ending December 7, 1846.

"The study and adoption of the principles of industrial Association, have here, as elsewhere, led all reflecting minds to acknowledge the principles of Christianity, and to seek through those principles the elevation of man to his true condition, a state of harmony with himself, with nature and with God. The Society have religious preaching of some kind almost every Sabbath, but not uniformly of that high order of talent which they are prepared to appreciate.

"The educational department is not yet regulated as it is designed to be; the Society have been too busily engaged in making such improvements as were required to supply the necessaries of life, to devote the means and labor necessary to prepare such buildings as are required. We have not yet established our reading-room and library, more for the want of room, than for a lack of materials.

"The social intercourse between the members has ever been conducted with a high-toned moral feeling, which repudiates the slanderous suspicions of those enemies of the system, who pretend that the constant social intercourse will corrupt the morals of the members; the tendency is directly the reverse.

"We have now one hundred and eighty resident members; one hundred and one males, seventy-nine females; fifty-six males and thirty-seven females over the age of twenty-one years. About eighty have boarded at a public table during the past year, at a cost of fifty cents per week and two and a half hours' labor; whole cost sixty-three cents. The others, most of the time, have had their provisions charged to them, and done their own cooking in their respective families, although their apartments are very inconvenient for that purpose. Most of the families choose this mode of living, more from previous habits of domestic arrangement and convenience, than from economy. We have resident on the domain, thirty-six families and thirty single persons; fifteen families and thirty single persons board at the public table: twenty-one families board by themselves, and the remaining five single persons board with them.

"Four families have left during the past year, and one returned that had previously left. One left to commence a new Association: one, after a few weeks' residence, because the children did not like; and two to seek other business more congenial with their feelings than hard work. The Society has increased its numbers the past year about twenty, which is not one-fourth of the applicants. The want of room has prevented us from admitting more.

"There has been 96,297 hours' medium class labor performed during the past year (mostly by males), which, owing to the extremely low appraisal of property, and the disadvantage of having a new farm to work on, has paid but five cents per hour, and six per cent. per annum on capital.

"The amount of property in joint-stock, as per valuation, is $30,609.04; whole amount of liabilities, $1,095.33. The net product or income for the past year is $6,341.84, one-fourth of which being credited to capital, makes the six per cent.; and three-fourths to labor, makes the five cents per hour. We have, as yet, no machinery in operation except a saw-mill, but have a grist-mill nearly ready to commence grinding. Our wheat crop came in very light, which, together with the large amount of labor necessarily expended in temporary sheds and fences, which are not estimated of any value, makes our dividend much less than it will be when we can construct more permanent works. We have also many unfinished works, which do not yet afford us either income or convenience, but which will tell favorably on our future balance-sheets.

"The Society has advanced to the members during the past year $3,293, mostly in provisions and such necessary clothing as could be procured.

"The following schedule shows in what the property of the Society consists, and its valuation: