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IJV GJEO. W. BOWT?AX.
NEW SERIES.
GOVERNOR S MESSAGE.
Jo Me Honorable, the Senate, awl House of
Representatives of the Commonwealth of
Pennsylvania, in General Jhitmhly met:
GcxTt.KMKX :
Whilst the events of the year just closed, pre
sent many causes of joy and congratulation, and
afford abundant reason for thankfulness to a ben
eficent Providence for his goodness and mercy,
cur prosperity and happiness, as a people, I re
.rr. tto sav, has not been unalloyed. The gen
eral growth of the country, the pi ogress of the
arts and sciences, and other causes of moral and
social comfort, have not, it is true, been inter
rupted : but the loss of valuable lives and pro
perty, bv the casualties of the elements, has been
unusual? froth in number and extent: and in
certain sections of our Commonwealth the afflic
tions of pestilence and dis-ase have also been
sorelv felt. Nor should we estimate lightly the
suffering that manifestly exists amongstihe poor
in our cities and towns. The drought of the
season deprived the busbardman, to some ex
ten!, of the anticipated rewards of his labor, and
lessened the means of human subsistence : whilst
the depression in monetary and business affairs,
has deprived many laboreis and mechanics of
their usual earnings. The means of subsistence
are thus greatly enhanced in value, at the same
t,me that the opportunities of earning them are
mucli diminished. The field for charity is con
sequently wider than usual : and to meet its
r. ;b ,nable demands on the part of those blessed
with an abundance, will be to sustain the chris
tian character, and measurably to mei it the con
tinued bounty of Heaven.
flie operations of the Treasury for the last
year, will he presented to vmi in detail, bv the
iiead of that department. The results are high
ly satisfactory, showing a steadily increasing
revenue from nearly all the ordinary sources.
The aggregate receipts Mr the fiscal year of
IS.">4, including loans and the balance in the
Treasury, on the 33th of November, 1853, a
nwunted to the sum of $(>,(>65,912 01. The
gr iss payments for the same period, to the sum
o! n.">,424,1)83 29: leaving a balance on the
30th of .November, of $1,240,929 72.
The extraordinary payments consi-ted of the
t II wing items, to wit : loans repaid, $235,-
bsS 40 ; to the North Brar.cli canal, $206,552,
7n: to the construction of the new railroad
over the Allegheny mountains, $461,921 0-3;
1O the payment of debts on the public works,
$389,91.6 38. Of the balance remaining in
the Treasury, a portion is applicable to the
payment of the State debt, and the remainder to
current demands.
The simple or ordinary operat ions of the
Treasury for the same period, were as follow,
to wit: the receipts, exclusive of loans and the
: dance in the Treasury on the 39th of Novem-
her, IS">3, realized from permanent sources, a.
mounted to the sum of $5,218,099. 00. The
< dinarv expenditures, including the interest ori
th-State debt and ai! the payments on the
finished lines of the public works, excluding the
payments on new works and loans, amounted
t > -SKI I('• ,74-f- Sk; being $1,101,190 If), !< ss
than the receipts.
This statement may be regarded as the work
ings of the Treasury simplified: and as establish
ing the gratifying fact, that tiie present reliable
revenues of the State, exceed the ordinary or
unavoidable expenditures, over a million of dol
lars : and that, relieved from tiie demands fir
tfe construction of new improvements, the
treasury could pav a million or more of the
t 'lie deft annually. It will also be perceived
' it the income from these sources is steadily
increasing. For instance, in 1846, with the
' ■ tax at present rates, and the same extent
:ii pr vi merits in use, with nearly ail the pre
- ot sources of revenue in operation, the gross
receipts amounted to but little over three and a
half millions.
No more reliable estimate of the operations
'fthe Treasury fir 1855 can he made, than is
furnished in the results for 1854. The ordina
ry receipts may he safely estimated at a million
of dollars above the unavoidable expenditures.
A portion ol this excess will be required to com
plete the new Portage railroad, and the Noith
i ranch canal: and th" remainder should lie
faithfully applied toward the payment of the
Slate debt.
Tlie aggregate receipts on the public works
5 " t'a? jiast year, as repoired by the Canal
' mmissiotiers, amounted to the sum of $1,876,
8S; and the expenditures to the sum of
Nl, 101,570 54 ; leaving a balance of $774,-
"■'S 111. from which, however, should be deduc
ted th" stun of $37,900, properly chargeable to
'he year, for new locomotives and other unavoid
able expenditures—thus reducing the net pro
ids to $736,60S 34. If we add to this, $131,-
1 "'6 00 received from the Pennsylvania rail
' *! company for the three mill tax, which is
< aimed by some as a part of the income from
;h p-uhlic works, we find a net revenue of
J svi.,s)oo• a sum equal to the interest on seven
!,f 'n millions of the five pet cent, debt of the
v iatr. The aggregate receipts were $57,121
than for the year 1853, and the reduction
' expenditures amounted to over $159,287 00.
'i" withdrawal of the business of the Pennsyl
vania railroad from the Portage road, readily
accounts for this difference.
Viewed in every aspect, this exhibit is grati
:>tng. } e\v similar systems of improvement in
country can present a more favorable pic
hire. • Some of them, in other States, have re-
C'Utiy been reduced toa condition of virtual in-
The increase of business on the State
rks fir the two last years, has exceeded our
ai 'ticiprtions: and hut for the necessity which
retried to exist for a reduction in tolls (o meet
|'-rrouiiding competition, the revenue would
ave been largely increased. The general
'" jveinent now on foot amongst railroad com
! aiiies. to advance these rates, may perhaps re
lieve th" State to some extent in this respect.
' he Delaware division makes a most gratify-
The gross receipts counted $365,-
"■*' ''7, and the expenditures $50,738 67,
showing a net profit of $305,58S 40 ; a sum e- j
qual to the interest on six million of the public 1
debt, and to 20 per cent, on the original.cost of
the work, including the expenditures tor new
locks.
The North Branch canal and the Columbia
railroad also present favorable results. The
business and tolls on the former have increased
with marked rapidity : and the management on
both these branches bear the marks of skill and :
economy. The expenses on the Allegheny
Portage road have been largelv reduced, and j
the business better regulated than at any former j
period. As a whole, I feel constrained to say, i
that the condition of the public works has been •
improved during the last year: in no other par- i
ticular, to so valuable an extent, as in the mat
ter of contracting debts, which it seems has been
almost entirely avoided. The officers on the
respective lines report that they have paid all
expenses; and some of them have gone s> far
as to say to the Canal Board that they will be
personally responsible for any debts that may
hereafter be discovered. This is truly ti great
reform—for nothing has cost the State so much, j
as the pernicious practice of making debts on
the put,lie works; I still think it should be in
terdicted by positive law.
In my last message I gave rnv views at length, j
as to the principles and rules that should con
trol in the management "f the State improve
ments, and 1 need not repeat them in this. I
would respectfully suggest, however, that so
much of the law as binds the Canal Commis
sioners to a fixed rate of tolls for the whole sea
son, should be repealed. The officers directing
the operations of the public works should, it '
seems to me, be left free to meet the exigencies
tn trade and commerce, as they may arise.
The work on the mountain railroad lias pro
gressed slowly, and it is obvious that it will not
lie fully completed before the summef of 1835.
J n>ust confe.-s myself sadly disappointed as to
the time and money consumed in the construc
tion of this work. The expend it lues, since I
came into office, have greatly exceeded the
whole amount estimated as necessary to complete
the line : an ! yet, it is but justice to say,-that
the Pennsylvania loalroad, Iving parallel with
it, has cost a still larger sum per mile.
I have endeavored, during my service, to '
guard against the commencement of schemes ot
this or any other character, to entail future lia
bilities on the Treasury. This ought to he the.
settled policv of the State. ,\o new improve
ment!? should be undertaken, upon any pretext
whatever. The payment of the debt, and that
only, should absorb the surplus revenue of the
Treasury. If this policy he pursued, no other
financial scheme, to pay t!m debt, will be ne
cessary. The large annual surplus will reduct
II.•> State's indebtedness with sufficient rapidity
I regret, exceedingly, the necessity ofannoun
ciiig to you that the North Branch canal i - not
vet in full operation. It is now more than a
year since the Canal Commissioners*'directed
the water to be let into the main trunk of that
improvement, and declared their confident be
lief, that it would he in successful operation bv
the middle of last summer : but their sanguine
expectations, as weli as those of the people,
have, in this respect, been sadly disappointed.—
A variety of unfbrseen difficulties presented
themselves in th- way of the attainment of this
end. The old work, constructed some twelve
or fifteen r ears since, as well as some sections of
the new , located on the lull side, near the mar
gin of the river, w hen tested bv the admission
of water, turned out to In* porous, and totally in
sufficient in its material and formation. Jn
some instances rocks, tiees and stumps, have
been concealed thus presenting but a slight ob
struction to the passage of the water out into
the bed ol (lit river. This is especially the case
in much of the old work. Jn ail such sections
or places, no remedy, short of a reconstruction
of the bottom ol the canal, could prove sullicient:
and thi* was necessarily a tedious and expen
sive piocess. There isftill a considerable por
tion of the work to remodel in this way; hut it is
confidently believed'that it will be readv for
use iu the t.irlv part of the coming season. That
the utmost skill ami vigilance lias at all times
been exhibited by the agents of the State, on
this line, I do nut believe; but the deficiency,
in this particular, on the new work, has not been
so palpable as alleged by some. Indeed, since
Alay last,great energy has characterized the
management on this line : the President of the
Canal Board having devoted much of his time
to a personal supervision ol the work. But it is
obvious, no degree of capacity in the State's a
gents, for tiie last year, could have overcome
all the difficulties that were encountered, with
sufficient celerity, to have entirely satisfied pub
lic expectation.
At the tin;*- I came into office, the sum ne
cessary to complete th:is work was estimated at
$772,01)1). Sine-.* that time trie sum of $ 1,20G,-
• r )n2 72 has been expended, and it will still re
quire, as estimated by the Canal Board, SOO,-
000 to put it into complete operation.
Whilst I regret this unforseen cost arid de
lav, I cannot refrain from repeating my mn(al
tering confidence in the wisdom of the policy
that dictated the completion of this work. The
large increase of business and tolls for the year
juSt closed, on the old portion of the line, indi
cates what we may safely anticipate from the
new. and, I cannot doubt, that the gross a
motint of business it will command, and the rev
enue if will yield, will exceed the most sang
uine expectations of its advocates. The inex
haustible mines of coal with which that section
oft he State abounds, the products of which are
destined to JKKSS through I Ids avenue to a limit
less market, witi furnish for it a never tailing
supply of business and tonnage. Besides, its
completion will be an act of justice to the in
dustrious and enterprising inhabitants of that
part of the Commonwealth, who have hereto
fore willingly contributed towards the construc
tion of the other improvements of the State from
which they could derive but little advantage.
It will also add to the general prosperity of the
adjacent country; to the value of property, and
BEDFORD, PA. FRIDAY MORNING, JAN. 19, 1855.
I consequently to the revenues of the State.
At the time of my induction into office the
funded debt, including accrued interest, amoun
ted to the sum of $40,154,457 48
Add to litis the loan of April,
1852, to complete the North
Branch Canai 850,000 00
$41,004,457 48
Deduct payments as follow :
J: t rest on outstanding
: certificates $50,0G3 39
| Receipts to the sink-
I ing fund up to this
: t itut— 1,057,856 15
Tot a I funded debt, $39,900,537 94
The floating debt and unpaid
appropriations at the period
already indicated, $1,421,090 15
Deduct the available balance
then in the Treasury, 750,000 00
$671,090 15
The floating debt,temporary loans,
unpaid appropriations, except for
repairs after the Ist December,
1854, ' 1,63:9,000 00
' Balance in the Treasury Novm
j ber 30,1854, after deducting tile
amount applicable to the old pub
lic debt and the relief issues
then on hand, 865,029 00
Balance: $765,929 00
During the same period the following appro
priations and payments have been made toward
the construction of new improvements, to wit:
For the re-construction of the
Columbia Railroad, $514,407 66
For the new railroad over the
Allegheny mountains, 1,117,953 93
For the completion of the West
ern reservoir, 52,388 00
For the North Branch canal, 1,206,352 76
Now locks on the Delaware
1 division, 100,319 99
Sundry special payments, 65,353 71
$3,086,778 05
j ,
The foregoing figures exhibit the astonishing
fact, that the Treasury has been annually pay
ing over a million of dollars towards the con
struction of new improvemnnts, and at the same
time accomplished a small reduction of the pub
' debt.
As made my duty, by an act of the Legisla
ture, approved the 27th of April last, providing
for the sale of the main line of the public
works, sealed proposals for its purchase were
invited, up to the first .Monday of July last. No
' offers were made under this invitation: and
public notice was again given, on the 14th of
November last, in accordance with the 29th
sect i m of the act, for proposals, to be submitted
to the General Assembly : but none have h-en
; received. This improvement is, therefore,
still the property of the-State, subject to such
disposition as the Legislature may deem neces
sary.
Mv mind has undergone no change, on the
subjeet of setting the public..works, since the
period of mv last message. I think the policy
of the measure depends mainly upon the price
that can he obtained, and the conditions on
which purchasers rnav he willing !" hold these
works f r the use of tin* public. With a full
and fair consideration, and on terms amply pro
tective of the rights and interests of the people,
in the future enjoyment of these highways—a
sale might not prove injurious to the public
weal. Kbit it is certainly neither wise nor
politic to assume that they must he sold for
whatever ran tie obtained : or that they should,
in any event, be given aw ay. Nothing could
have a more prejudicial effect up n the inter
ests of the State, as involved in these improve
ments, than the avowal ol such a determina
tion. Nor is it less unwise to disparage the
value of the Commonwealth's property, n! the
very moment of putting it in market for stile.—
No intelligent private citizen would so act, in
reference to his own estate. He would hardly
give notice to capitalists, in advance, that he
would sell his farm for a lair price: hut if un
willing to pay such reasonable consideration,
they could have it for half the money. Nor
would such a person proclaim, that of all the
farms in the country, his was t he least produc
tive.
It is certainly the wish of many good citi
zens of the Slate—perhaps of a majority—that
the public works should he sold : but this de
sire is evidently based upon the* assumption
fhat the measure would he one of real econo
my—that it would lessen, without the hazard
of increasing, their annual taxes. The real
ization, of such an object, it must be perceived,
then, depends entirely upon the price and
terms. Those who desire a sale, certainly ex
pect tiie State to he the gainer bv such a mea
sure. No other important, or sufficient reason
for parting with this property has been assign
ed.
Jf is usually said that the works should be
sold to pav the public debt and lessen the bur
thens of the people ; but it must be observed,
that a sale might he made at a price far too low
to effect such purpose; and if so, to give them
away would be still less likely to produce the
desired result. Should ihe gro.ss sum received,
not be equal to that on which the nelt earnings
would pay the interest, then the ellect would
he to increase, rather than diminish these annu
al burthens. This is not what the people desire
to accomplish by a sale ; nor will they be satis
fied with such disposition of their property.
The real value of the public works, is a pro
position full of difficult v ; and I doubt not the
General Assembly will approach the inquiry,
duly impressed with its importance. Ten mil-
Freedom of Thought and Opinion.
lions of dollars was fixed, by the law of last |
session, as the price for the main line. This
minimum is said by some to be too high, and !
the failure to sell, regarded as the* consequence. ;
Others attribute the absence of bidders, to the '
condition of the money market—to the strin
gent restrictions imposed upon -the law : and to
thai efforts that hac! been previously made to dis
parage the value ofthe line. But it is obvious \
that more than one of these causes may have'
operated,.; and a greater than all may have '
tiefn, the hope of getting this property on bet- '
ter terms, at a future time. 1 feel very confi
dent that the latter consideration was not with- *
out its influence. But, he this as it may, it is ;
certainly wiser to fail to sell from any one of
these causes, than to hazard the works in the :
market, without anv restriction or limitation as
to price or conditions. A bad sale would as- I
suredly be a greater misfortune, than no sale at !
all.
The benefits resulting to the people from
these improvements, have been numerous ami
diversified. They have facilitated trade and
commerce : stimulated productive industry in
ewry department: and have not only enabled
the farmer to reach a ready market with the
i fruits of his labor, but have furnished conveni
ent out-leis for the rich mineral treasures ofthe
State. Without them, the miner wguld be de
prived of his occupation, the transporter be left
j in helpless destitution, and the Commonwealth
| itself be permitted to retain a parsimonious pos
session of vast masses of natural and unprodiic-
I tive riches. Our predecessors were wise in
: opening these avenues to trade and commerce;
and if we wish to he rated wise hereafter, we
shall not rashly and hastily throw away the ad
vatoges of their future use. This use, to the
full ystent, in the event of a sale, ran only be
secured hy a jealous protection of Ihe right of
the people to enjoy it. The very first condi
tions of such a measure should he, that the works
and every ( ranch of them, b" kept at all times
in good order and in operating condition, and
remain forever public highways, for the use
of ali persons who mav wist) to transport goods
or merchandize over them, upon rates not great
er than those charged upon other similar, im
provements. No corporation should get pos
session of these valuable avenues, on such con
; rl it ion c as would enable it to impose unreasona
ble burthens on the interna! trade and tonnage
ofthe State, or in any way to encroach upon
the rights, of the individual citizen. To obviate
: such results, the powers, privileges and reslric-
I 'ions of any corporation getting the works,
should !- minutely defined. Past experience
suggests these prudential counsel- Awe have
, ofF-wi *weo in thto Stat*s how dflUfb it is to
confine the operations of these artificial bodies
j within the limits prescribed by the law; and
we dioidd iv>t fail *•> profit hy the lesson.
By tlie 29ih section of the act ofthe 9th of
May last, providing for the ordinary expenses
of government and h*r purposes, Nimrod
Strickland, of Chester county, John N. Purvi
ano', of Butler county, and John Slrobm, of
Lancaster county, weie named as commissioners
to sefie certain claims and debts against the
Commonwealth. It was also marie the duty of
tin' G .vi's n-ir to suppl v, bv appointment, any
vacancy in this commission which mightoccur.
Tim gentlemen already named have declined to
i serve. 1 accordingly appointed William W.
Williamson, of Chester c untv, Wiiljairi En
glish, of Philadelphia, and John (1. Magiil, of
We.-tinoreland rountv, in their stead.
After a tedious and laborious investigation,
these gentlemen have completed the duty as
signed to them, and the result will be commu
nicated to you, in detail, in their own report,
j I regret to perceive that the accounts so ex
amined and settled, exceed the amount of the
'appropriation nearly $11)0,000. It is well,
however, to see the end of claims ot this char
acter: arid having accomplished this, it will lie
prudent to guard against the recurrence of a
similar state of affairs. Indeed, the practice ot
: contracting debts on the public works, should
jhe at once and forever abandoned. It has been
i a fruitful source of confusion in the accounts,
if not of palpable wrong upon the Treasury.—
The right to scatter the credit of the Common
wealth in this unguarded way, is, 1 venture to
assert, without a parallel in the management of
public affairs. Of the many defects in the sys
tem of managing the Stale improvements, this
has been the most productive of evil. In my
first, as also in mv last annua! message, 1 most
earnestly urged the General Assembly to pro
| x id-, by law, that no debt should he contracted
| bv the officers on the public works:—that the
nec.essasv labor and material to maintain these
' works should be paid for in cash—and that
: each officer should be compelled to settle his
1 accounts promptly. The examinations just
made, demonstrate still more clearly the neces
sity for such reform.
Repeated attempts have been made to repeal :
iso much of tiie act incorporating the Pennsyl
j vania railroad company, as requires it to pay
5 into the Treasury annually, a certain per cent
nge on the amount of tonnage which may pass
over that road as an equivalent for the privih- j
ges granted by the Commonwealth: hut the ■
General Assembly have as repeatedly reject
ed the proposition : and I sincerely hope, that j
' s > long as the State may need the revenue j
from this source, ail future attempts to accom- j
plish this end. may meet a similar- fate.
Having been connected with the legislation
! which brought this company into existence, and
j clearly cognizant of the motives and purposes,
j which governed the Legislature in imposing ;
■ this condition on the grant, I can discover no!
reason, in subsequent events to justify the re- j
, linquishment of this valuable reservation ; hut i
many, on the contrary, to sustain its just ice and j
| utility. The discussions pending the incorpo-
ration of the company, will best indicate the;
i object of this restriction. The construction of |
a railroad from Harrisburg to Pittsburg, parallel j
i with the State works, was very properly urged j
as indispensablv necessary to ineel the wants of
the travelling jaiblir, and to enable our metrop- j
olis to compete successfully with other commer
cial cities. The very first and most formida
ble difficulty which itself in the way
of this enterprise, wag the prejudicial effect such
a work might have upon the business and profits
ofthe main line of the public improvements.—
It was urged on the one hand, that the State
works had been constructed at the expense of
the people of the entire Commonwealth—that
those residing in the extreme portions of the
State, as well as those of the interior, had, an
nually, contributed towards the payment ofthe
interest on the debt which had thus been con
tracted ; and, therefore, the Legislature could
not, consistently with the principles of justice
and equity, make a grant that would depreciate
the value of property which belonged to all,
for the purpose of fostering the growth and
prosperity of a particular portion ofthe Stat**.
Good faith and correct moral principle forbade
such action. Co the other hand, it was alleg
ed that tlie increased business which such an
improvement would throw upon the Columbia
railroad, and the enhanced ' value of propeity
adjacent to the proposed road, from which the
State would derive increased revenue in the
form of taxes—would constitute an ample remu
neration to her coffers, and thus do full justice
to the people as the owners of the works to be
affected. But a majority of the Legislature
concluded that some additional benefits were
demanded, and hence the adoption of the pro
\ isiori ! i v hich I have referred.
The stock was subscribed with a full knowl
edge of this reservation, and the acceptance of
the charter by the company, was the consum
mation of a solemn agreement between them
and the State.
Yet, under the specious plea that it imposes
a tax on trade, the Commonwealth is now ask
ed to relinquish this condition: and the case is
argued as though it had been the policy of the
law that the company should impose this charge
of three mills per ton upon every species of pro
perty which may pass over its road: and, in this
wnv, it is verv readily shown that on coal, iron,
lurnher, and other cheap tonnage, this charge
would he too great. Rut the company are not
obliged to assess this tax on all kinds of tonnage;
nor was it the intention of the act that the}'
should do so. The design was to make an ex
action from the nett profits of (lie company, for
the use of the public coffers, as a compensation
for a valuable grant, and thereby protect the
public improvements from the competition of
this new rival. The tax on tonnage, therefore,
was intended to indicate only the mode of as
certaining the sum to he paid, and not the spe
cific tonnage on which it should be charged.—
When the sum is in this way ascertained, it
j matters not to the State how the company ob
tains the money: whether it be by charges on
• freight, or on passengers—on local or on thro'
tonnage. Should, therefore, certain kinds of
tonnage be improperly oppressed, the fault is
with the company, not in the law. And sure
ly it will not be contended that the protection
thus thrown around the works of the State is
unnecessary: so far from this the wisdom and u
tilitv of this feature of the company's charter
has already been made manifest. The very ex
igency anticipated by the Legislature has arisen:
the competition of the rail-road is already seri
ously felt bv the main line. Relieved from
this restraint, hut a meagre portion of the carry
ing trade would he left for that branch of our
improvements, Nor will it be contended that
the Commonwealth does not need this source of
revenue.
Rut, viewed alone, as a matter interesting to
the owners and tiansporters of tonnage, what
■guarantee would they have that the rates of
transportation would he reduced, were this tax
taken off? None whatever. The company
would charge as heretofore, and thus realize the
amount of the tax in addition to their present
profits. If thev should not do this, their action
would differ from tlat of similar corporations un
der like circumstances. But to admit, what is
claimed, that a reduction in the charges of
transportation to a similar extent, would take
place, it must be perceived would duplicate the
loss to tlie State: for slm would not only thereby
lose the amount of the three mill tax, but be de
prived of a very large portion of tonnage which
would be attracted to the company's road by
this reduction in the rates of transportation.—
We are thus brought to the simple inquiry,
whether the State shall retain this valuable in
comp, to which she is so just I v entitled, or whe
ther she shall give it to the rail road company.
Most certainly the latter alternative should not
he adopted, so long as the question of selling the
State improvements remains undecided.
Asa mere revenue measure, this tax consti
tutes an important and increasing item in the
annual receipts of the Treasury. In the year
JSo.'f, it amounted to the sum of $74,000, and
for the year IBf>4, to $131,000.
That this amount will be materially increas
ed hereafter, is self-evident. If this important
item be withdrawn from the Sinking Fund,
there will be but little left to sustain its opera
tions.
I am aware that these views may be met with
the plausible argument that trade and commerce
should not he thus burthened—that the effect
is prejudicial to the business of the State. This
is true to a certain extent, and should have its
full weight iu the adjustment of a question ot
this character. But it will scarcely be conten
ted that trade and commerce should be sustain
ed bv contributions from a needy Treasury.—
On this principle, it could as reasonably be
maintained that the State should make no char
ges whatever for the use ot her own works.
The administration ot Oov. Shunk commen
ced the cancellation of the relief issues: and
that of my immediate predecessor arrested the
process, leaving $650,163 00 of this unsightly
currency in circulation. In the spring of '53,
the policy of cancellation was again resumed;
and up to this date, $4-85,384- 88 had been re
ceived into the sinking fund, as applicable to
that purpose, leaving the meagre sum of $154>,-
778 12, to provide lor. The gratifying fact
TERHS, S2 PER YEAH.
is apparent therefore, that, without any furth
er legislation on this subject, the entire outstan
ding balance of relief notes can be withdrawn
from circulation and destroyed during the cur
rent year. Tt is true that these issues have not
come into the Treasury as rapidly as the funds
tor their cancellation have accumulated, and
that, consequentiv, a portion of the receipts
have not been invested: but this difficulty will
be obviated in June next, when the law will
go into operation which forbids the banks and
receiving officers of the commonwealth tt> pay
out these issues, and requires them to be presen
ted at the treasury for cancellation. We shall,
therefore, soon see the last of a currency which
has polluted the channels of circulation for
thirteen years past: and T trust that the lesson
thus taught has been quite sufficient to warn us
against similar errors for all time to come.
My opinions on all questions that concern the
currency, have seen so often expressed, that
they must be well known to the Legislature,
and need not be given, at length, in this com
munication. Without, at any time, assuming
it would be wise for this State, regardless of the
policy of other Commonwealths, to dispense
suddenly and entirely with banks of issue, it
has been uniformly held that the amount ofban
king capital as a basis for paper circulation,
should be closely limited to the urgent wants of
commerce and trade. If the experience of the
country is worth any thing at all, it has demon
strated the correctness of this policy: and that
the use of small Bank notes should be discoura
ged and forbidden. In accordance with this
view of the subjpct, I have, on past occasions,
refused to sanction any extensive increase of
banking capital. '
Everv commercial country is liable to alter
nate seasons of excitement and depression; to
periods of extravagant over-trading, followed
by ruinous revulsions. The reaction now felt
is the inevitable, if not the natural counterpart
of an undue expansion of credit, in the lornr of
bank paper, railroad, State and corporation
bonds and individual obligations. In those
States where the free, or stock-banking system
had stimulated the expansion, the workings of
the reaction have been disastrous. In our own
beloved Commonwi>alth the shock has been sen
sibly felt, though far less severe than in other
parts of the country. Her partial escape, it is
believed, is mainly owing to her prudent and
restrictive policy in the use of hank credit. It
is, at least, very clear, that had the Iree or
stock-hanking plan, at onetime so zealously ad
vocated, been adopted jn this State, or had our
present system been .greatly expanded, the posi
tion of affairs in our commercial metropolis
would not have Keen #o.favorable as at present.
Had the natural tendency to speculation recei
ved this artificial stimulant—the limits of safe
ty, like the lessons of experience, would have
been passed unheeded: as it is, some good men
in the pursuit of useful enterprises, have been
prostrated. It is most unfortunate, that under
this influence, all must suffer alike. Those who
profit least bv the expansion, are often effected
most bv the contraction. This is especially the
case with labor, which is uniformly the last to
he elevated in times of prosperity, and the first
to go down in those of depression. The Banks,
as a general rule, make the most out of these
convulsions. It is often their error to flatter
the merchant and trader when the tide of pros
perity runs high, and to forsake him o'n the first
appearance of its ebbing. Even sound banks,
and of good reptitp, it is said, are seeking to
make money out of the present crisis, by shar
ing their capita! and its benefits with brokers
and jobbers, instead of aiding the business com
munity at legitimate rates. How far these al
legations are warranted, it is difficult to decide:
but it is to be hoped that few, if any of our
banks are justly liable to this charge, for such a
practice would be highly improper and well
calculated to excite discontent. Such a depar
ture from legitimate business would demand a
prompt remedy at your hands. It may he dif
ficult to confine these institutions to their pro
per business, with the prospect of better profits
in other quarters: but they should be rnadp to
feel that thev have been created for a higher
purpose than merely to enrich the stockhold
ers.
The crisis is a trying one: but there is still rea
son to hop" that the credit and trade of the
country will never suffer as much as it has
done on similar occasions, in times past. There
is now no National Hank to mislead the mercan
tile class, and to embarrass the commerce which
it professed to aid. Still the shock will be great
enough to lead the public mind to enquire after
a remedy for these periodical convulsions. And,
surelv, we mav he permitted to hope, that the
good sense ofthe people will never again he im
posed upon hv those tfrude experiments which
have, on some former occasions, so fearfully ag
gravated the evils thev were intended to remedy.
I respect fully advise the General Assembly
against all such dangerous experiments. The
remedy, to be permanent, must be a natural one:
artificial means may add to present derange
ments : but cannot correct them. An extensive
increase of banking capital and other expedients
will, doubtless, he pressed upon your attention :
but it is hoped that no such fallacy may find fa
vor. Nor is there any sufficient reason for the
alarm and sensitiveness manifested in certain
quarters : the real wealth of the country still
exists, and the natural elements of prosperity
are no less than heretofore. It is the shadow,
not the substance that is passing aw ay. The
business community should look the danger
bravely in the face, and by their energy, hones
ty and enterprise, overcome it. Mutual confi
dence and forbearance should be cherished by
all. as a means of accomplishing this desirable
end.
Tn accordance with the provisions ofalaw
passed in April last, a vote of the people was
taken, a! the October election, on the policy of
prohibiting the manufacture and sale of intoxi
cating liquors : lf)S,3-f-2 votes were cast in fa
vor of the measure, and 163,010 votes against
it.
VOL XXIII, NO. 23.