VOLUME 08. NEW SERIES. THE BEDFORD GAZETTE LG PUB UIHED EVETTY FRIDAY MORNING BY ISY B. F. MEYERS, At the following terms, to wit s *I.SOPER annum, CASH, in advance. 2 00 " " if P a 'd within the year, gaiso " " if notpaid within the year. subscription taken lor less than six months, paper discontinued until all arrearages • repaid > unless at the option of the publisher, rt has heen decided by the United States Courts that the stoppage of a newspajr without the payment 0 I arrearnges, is prima facm evidence ot fraud and ii g criminal offence. V3-T|,e courts have decided that persons are ac countable for the subscription price of newspa pers, ii they take them from the postoffice, wheth er they subscribe for them, or not. RATES OF CHARGES FOR ADVER TISING. Transient advertisements will be inserted at the rate of S'• -00 per souare often lines for three inser tions or lest, b , for every subsequent insertion, j;, cents per square will be charged in addition.— Table and figure work double price. Auditor s notices ten lines and under, SI.OO ; upwards often fines and under fifteen $1.50. Liberal reductions Bade to persons advertising by the year. . tOVER \0 R'SJT EfiSA tl E. HARRISBURO, Jan. 8, 1862. To (he honorable the Senate and House of Rep resentatives oj the Commonwealth of Penn sylvania: GENTLEMEN ; It lias pleased Divine Providence, during the fest season, to give us abundant crops, unbroken peace within our borders, unanimity among our people, and thus (o enable (his Commonwealth to do her lull duty to the country, to bersell, and to posterity. For these blessings we have cause to be grateful. The balance in the Treasury on the 30lh of Nov'r. 1860, was §681,4-33 08 Receipts during fiscal year end ing November 30, 1861 6,743,525 02 Tola 1 in Treasury for fiscal year ending Nov. 30, 1861 7,424,958 10 And the payments were 5,873,352 38 Leaving balance in Treasury, Nov. 30, 1861 1,551,605 72 Public debt remaining unpaid, exclusive ot military loans 37,868.516 08 Receipts from military loans, 8,119,879 45 Unexpended of military loans 390,507 41 It will be observed that the fiscal year ends on the 30th of November, and the sinking fund year on the fii t Monday in September, which accounts for 'he apparent deficiency in the a mount of debt paid as stated in the Treasurer's report, and by the Commissioners ol the Sink ing Fund, the State has on hand a surplus of uniforms and equipments which cost about $190,000, which the U. States have agteed to take and pay for at cost. Arrangements have been made with the general government for the reimbursement ol the military expenses of the State since the 27th of July last. The bills as paid are forwarded to Washington and partial repayments have already been made. It will be observed that the receipts from or dinary sources ol revenue for the year 1861 have decreased, but as payments have been made on some of them since the settlement at the end of the fiscal year on the first of Decem ber, and more may reasonably be expected in addition to the payments to be made by the Na tional Government as hereinalter slated the bal ance available in the treasury will be largely increased. It will also be observed that it has not yet been found necessary to call in all ol the loan eflected under the act of the 18th of May last. In some items the ordinary revenue ol 1861 was in excess ol that ot 1860. The loan authorized by the act ol May 15th, 1861, was taken at par. This occurrence, most gratifying under all the then existing circum stances ol embariassment, affords triumphant evidence of the confidence of the people in the stability and integrity of the Commonwealth aud ol their determination to suppotl the Gov ernment. The operations of the Sinking Fund during ♦.he last year have been as showtr by my Pioc lamation of stli September last, as lolltaiv: Debt redeem-d from 4th Septem ber, 1860, to Ist Sept. 1861 $300,801 01 Of stock loans $300,050 00 " interest on certifi cates 3,330 01 relief notes 421 00 I refer to the reports of the State Treasurer and Auditor General for the details of the finan cial atfai.s of the Common wealth. The reports of the Surveyor General and State Librarian will exhibit the state ol the Departments under their cate, ■ The Commissioners of the Sinking r una uur ino- the la-t spring received Horn the Philadel phia and Erie (late Sunbury and Erie) Railioad Company forty bonds ol that Company lor SIOO,OOO each, and, a mortgage to secure the same executed in conlormity with the third sec tion of the act of March the 7th, 1861. That company has also deposited in the State lieas ury its bonds to the amount of five millions of dollars, in accordance with the Cth section ol the same act. On the 9th of May last I grant ed my wairant authorizing the fctale Tieasurer to deliver to the said company one thousand ol said-bonds, being to the amount of one million ol dollars. This warrant was issued in confor mity with the law, the five per cent bonds men tioned in the filth section ol the act (except those belouging to the Slate and now in the Sinking Fuuri) having been previously surren dered and canceled, and satisfaction entered on Nhe Record of the Mortgage mentioned in said filth section. Having received notice from the company that the bonds so delivered to tlie com pany or their proceeds had been appropriated <n accordance with the provisions of the law, on the 21st ol June last I appointed John A. Wright as Commissioner to examine and to re- port to me whether said bonds or their proceed had been appropriated to the purposes require! by the act. His report has not yet been receiv ed by me. It is understood that arrangements have a last been made under which the direct railroai connection between Philadelphia and Erie wil be completed within a short time. It is impos sible to estimate too highly the importance o this great work to the Commonwealth, and es orcially to Philadelphia and Erie and the huh erto neglected counties near its route west o the Susquehanna. By the act ol the 21st April, 1858, for thi sale ol the State canals to the Soubury and Eri railroad company it was provided that it tha company should sell said canals for a gri-aiei sum in the aggregate than three and a half mil lions of dollars, seventy-five per centum of suet excess should be paid to the Commonwealth by a transfer of so much ol such bonds and-secun ties as such company should for (he sam< and payable in-like mannerP^ The company sold the rahals and reporter that the share ol the profit on such sale, due t< the Commonwealth was $281,250 ol whicl $250 was paid in cash and for the remaining $281,000 the Commonwealth received coupot bonds ol the Wyoming canal company to tha Bmount, being a poition of. bonds f.JV $900,001 issued hy that company and si cured by a inorl gage of the Wyoming canal, formerly called tin Lower North Branch canal. These bonds bea an interest ol six per cent, per annum, payabh s-mi-annually on the 15th ol Januaiy and July and the interest was paid by the company (< January last inclusive. The interest due ii July last I.a- not been paid. Judgments having been obtained against the company on some o the coupons foi the unpaid july interest, a bil in equity was filed in the Supreme Court by E bond and stock holder in which such proceed ings were had that by a decree made on the 2d September last the property and alfriis of tht company were placed in the hands of a receiver. A plan has been suggested lor the assent ol the stock and bond holders which contemplate! i sale of the canal under lawful process and a purchase of the same lor (he purpose ol forming a new company, of which the capital stock shall be one million of dollar*, divided into twenty thousand shares ol filly dollars each, of whirl each assenting holder of a mortgage bond foi one thousand dollaisshall be entitled to eighteen -hares, and each assenting holder ol fifty shares }f stock of the Wyoming canal company shall je entitled to nine shares- Ol course noulficei >f the Commonwealth had authority to assent tc :he proposal "t in any way to affect her position It is believed also that the plan is not one thai aught to be assented to by the Commonwealth nd that under all the circumstances, il the con venience of individual parties requires a cbangi ruch as proposed, the debt due to the Common wealth ought to be first paid or fully secured. I suggest that the Act passed Bth of April, 1861, entitled "An Act concerning the sale oi railroads, canals, &c.," should be modified sc that iu ail cases in which a debt may be due tc the Commonwealth by the company as wliost property a public, woik may be sold, the pur clsaers thereof shall not bfc entitled to the bene fits and privileges conferred by the Act unlesi they shall have first paid the debt due to tin Slate, or secured the same by their bonds to tbi Commonwealth secured by a first mortgage or the work itself. 1 con.meud the subject to the immediate con sideration of the Legislature, as an effort may be made at an eailv day to enforce a sale of tin canal, and some provision by Jaw to protect tin interests of the State would in that case be ne cessary. . • The wicked and monstrous rebellion whict broke out many months ago, has not yet beet quelled. Every sentiment of loyally and pa tiiotism demands Us eifectual suppression. In my messages ol the 9th and 30th ot Apri last, I set foi th at length my views ol the char acter and objects of the contest which is stiL pending. Subsequent reflection has confirmee me in the coireclness ol the opinions then ex pressed and to which I refer. In addition ii oujilit to be understood, that looking to the va riety and character of her products and indus try, her mateiial interest alone would render tlx preservation of tile Union from the present as sault upon it, indispensable to Pennsylvania She cannot afford to have a foreign power below or above or bounding her on the Uelawaie, tht Chesa'ieake or the Mississippi, and she wi.l nev er acquiesce iu such a result, whatever may bt the cost in meu and money ol her resistance tc it. On the 9tb of April last I directed the atten tion of the Legislature to the necessity whict existed for an unproved military organization and on the 12th of the same month the \c*. en titled "An Act for the better organization of tin militia of this Common wealth" passed, appro priating the sum ol $500,000 lor the purpose o organizing, equipping and arming the militia On the 15th oi April the President, by procla mation, called for a military force ot 75,00 C men, of which the quota assigned to Pennsylva nia was at first sixteen (afterwards reduced tc fourteen) regiments to serve as inlan'ry or rifle men for the term ol three months unless soonei discharged? This call was enthusiastically re sponded to by the people ol Pennsylvania. I'm first military aid from the loyal Mates, which the Government received at Washington, was s Pennsylvania corps which arrived there prior tc the 19th ol April. On that day the passage ol other coins from this and other States through Baltimore was impeded by force and during nearly iwo weeks afterwards the coinrriuuicatiou between Washington and the loyal States was almost entirely cut off. On the 19lh X receiver; a request from the War Depaitrnent that the leo Ops preparing iu this State should be clothed, armed, equipped, subsisted and transported by the Slate in consequence of the then inability oi the United States. This request was ol course complied with, and twenty-five regiments, (be- Freedom of Thought and Opinion. BEDFORD, PA., FRIDAY MORNING, JANUARY 17,18G2. ing eleven regiments bevood our quota.) com prising 20,175 men froin Pennsylvania served lor the term of three months under the Presi dent's proclamation above referred to. As the furnishing those volunteers with supplies was necessarily under the circumstances a hurried operation, and as complaints were made in re gard to them, and frauds were alleged to have been perpetrated, I appointed a board of commis sioners to investigate the whole subject. A copy of their report with the evidence taken by them has been already laid before the public, it is the intention of the Auditor General to open the accounts of such parties as appear by the testi mony to have been overpaid and this course has already been taken in two of those cases. On the expiration of the term of the three months men in July last, some eight or ten thou sand discharged Pennsylvania volunteers were thrown into Harrisburg without notice and de tained here, waiting to be paid, lor an average time of some ten days. Their tents, camp equije age and cooking utensils had been taken from Wiem at Williamsport, Md., and they arrived here desti'ute of all means of shelter and ol pre paring their food. The Commissary of the U. States furnished uncooked rations, and under the circumstances of emergency I deemed it ne cessary to make arrangements lor aiding in the cooking and baking of the rations, and also lor furnishing meals to such ol the regiments as ar rived during the night or under ciicumstances requiring instant relief. The expenses attend ing these operations amounted so far as asCei tamed to $>744 20, and I recommend that the Legislature make an appropriation to pay them. It ougM to be stated that these expenses would have been much larger, but for the liberal anr patriotic efforts of '.he citizens and especially the ladies of Harrisburg; their free-handed hcspi'al ily and generous aid to our wparied and hur.gry soldiers, deserve remembrance and gratitude. At the special session oi the Legislatuie which commenrjed on the 20th ol April last, I recom mended. the organization of a reserved corps, lo be armed, equipped, clothed, subsisted and paid by tlie State, and drilled in camps of instruction, in anticipation of the exigencies of the country, and by the Act of the 15th of May last, such a corps was directed to be raised, and a b.nn of $3,000,000 was authorized to defray the expen ses of tiiat and other military preparations. M-ti more than sufficient in number to form some ten regiments of the Reserve Corps bad, previ us to the 1 :>'.h of May been accepted by me in pur suance of a call on me (afterwards rescinded,) for twenty-five regiments, and were then air a dv assembled an/t iniut-cl to iiiv control. Most of these men volunteered lit the ft serve Corps and were immediately organized. The remain ing regiments were rapidly recruited and the Corps was thus completed, and George A. Mc- Call, ol Chester county, was commissioned as Major-General, and assigned to the command ol all the forces raised or to be laised under the provisions of the last mentioned act. The regi ments composing the Reserve Corps were in structed in four camps in different parts ol the State, until they weie taken into the service of the United States. Two of these regiments, un der the command of CMonels CharUs J. Biddle and Seneca G. Simmons, and two companies oi artillery under the command ol Col. Charles T. Campbell at the pressing instance of the War Department were sent on the 22d of June last to the relief of Col. Wallace, at Cumberland, and remained lor about six weeks there, and in Wes tern Virginia engaged in active operations. Towards the close of July the whole Corps was called for under requisition, and taken nto the service ol the United Slates. Within fiur days af'er the disaster at Bull's Run, eleven te giments of this fine body of men (armed, drilled, clothed, equipped, and in all respects ready lur active service,) were in Washington. The regi ments and companies from Western Virginia and the remaining two regiments making the whole number of fifteen, soon joined them there, and they are all now in service under I he command of Gen. McCail, who has been commissioned as a Brigadier General by the United States. These fifteen regiments contain fifteen thou sand eight hundred and fifty.six men, and con stitute a division comprising three brigades, a regiment of Artillery and one of Cavalry. The whole expense oi raising, clothing, equipping, subsisting and paying the Reserve Corps (inclu ding the expense ol establishing and fitting the camps of instruction, of recruiting, and supply ing regimental flags, and the expenses ol the campaign of the two regiments and companies in Maryland and Western Virginia, which were all defrayed by the State) has amounted to $855- 444 87. This does not include the transporta tion on Rail Roads, as the separation ol that ac count would have been a work of great labor, nor does it include the pay ol the two regiments during the campaign, but it does include all the expenses, which were heavy, ol teams and trans portation, not on Railroads, lor the two Regi ments on the campaign above mentioned.— Twelve Regiments of the Reserve Corps were paid, subsisted, &c., by the Stale lo the average date o( 22d July. The two regiments in Wes tern Virginia were paid by the Stale to the date of Iheir departure from Harrisburg on (hat ex pedition. The Cavaliy regiment was not paid bv the Stale. It will be perceived that (lie whole average expense per man was $53 9.0. Previous to Ihe 31st of April last, a regiment had been enlisted in the city ol Erie horn North western Pennsylvania. When the call was made on me on that day, for 25 additional regi ments, the Erie tegiment was ordered to march to Harrisburg. The call was rescinited, how ever, before the regiment reached Pittsburg, and I ordered it to encamp at that ci.ty where it remained until the 30th of June. The Nation al Government declined to muster the regiment into service—as all existing requisitions made on the State were more than filled. Much apprehension existed in the Western and South western borders of the State, and it was deemed prudent to retain the regiment at Pittsburg to meet any emergency that might aiise. After !lie passige of Ihe Act of 15th | May, 1861, it was Mxpected that the regiment' would form part of t he fteserveVolunteer Corps; bat an the men had been a long time from home and remained inactive in camp, they declined j entering the service, and were subsisted and paid up to Ihe 30th ot June by the Slate. Two regi ments have sisce Wen enlisted Irom the same pari of Pennsylvania at the city of Erie, one of 1 which has been e,t Washington in service since September, aad the other is now ready for marching orders—and it is due to the first Erie ! regiment to say that most of the men are now : in service. Fuither requisitions for sixteen regiments of Infantry and two Regiments of Civalrv were shortly afterwards made by the War Dppart- | meat. Of these, sixteen have already been raised, and the remaining two are in the course ot organization and nearly ready to march. In addition to the requisitions on the State, ; the War Department had given authoisies to | numerous individuals to raise volunteers in; Pennsylvania, but as that system wa3 found to; create much embarrassment, a general order was ' issued by the War Department on the 25th of : September last placing all such organizations! under the control of the Governor, and shortly ' afterwards a requisition was made on the State : to inctease her quota to 75,000 men. Those; independent organizations, as they were called, j thus liecame Pennsylvania regiments, and as completed and sent forward form part ol the ■ quota of the Stale. The State regiments have tieen numbered, ' and the 'ast to this dale is numbered 115. Two ! of (lie three months regiments have continued 1 in service under the later icquisitions, and re-j tain their original numbers. Deducting there maining twenty-three three moiiths regiments, there aie ninety-two regiments in service and preparing lor it. We have also in service and prepaimg twenty-four companies. The following table of the existing Pennsyl vania volunteer force is given for information : REGIMENTS IN SERVIC"!. 60 regiments of infantry of which 6 were rifle regiments 71,189 11 regiments of cavalry 12,699 1 regiment of artillery— 1,077 84,956 COMPANIES IN SERVICE. 7 companies ol infantry 707 6 " cavalry .....578 6 artillery 936 • - "**" 87 177 S EnlHments in othpr than P-oncyJyama ' organizations, estimated, (the otlicers ol which are in courso of being com missioned,) 6,400 Total in service, S3 577 REGIMENT FREPARING FOR 9ERVICE. 12 regiments of infinity 13,0.92 1 "cavalry 1,136 1 " "artillery 1,077 15,305 COMPANIES TREPARING FOR SERVICE. * 1 company of cavalry, 109 4 companies artillery 624 733 16 038 In service, 93,077 Prepaiing for service, 16,038 ■ Pennsylvania's contribution, 109,615 Exclusive ol 20,175 three months men now d isbauded. The regiments preparing for aervice are in complete. TIIOSP that may not be Ailed by the 16th instant will be consolidated and sent for ward. Of the regiments in service, the 11th and 15th regiments of Infantry are at Annap olis; the 28tb, 29:h, 21st, 66th, 69th, 71st, 72nd and 106 th regiments and one company of I Infantry are in the command of Major Gener al Banks; the 45th, 50th, 55th, 76th and 100 th regiments of Infantry ate in South Carolina; the 48th Infantry are at Haltera? Inlet; the 108 th Infantry and 11th.Cavalry are at Fort re.-s Monroe; the 77th, 7Sth, and 79th, Infan try, the 7th and 7th cavalry, and troop of horse, one squadron ol cavalry, two battalions ol ar tillery are in Kentucky; the 84th and 110 th Infantry are in Western V'rginia, as are also three companies ol Infantry, lour companies ol cavalry, five companies of light artillery; the 87th infantry are at Cockeysville, in Maryland; one company of artillery is a! Fort Delaware; all the remainder of the volunteers Rre at or near Washington. Upwards ol 300 volunteers from Pennsylvania are now prisoners, but as arrangements have been made (or the exchange uf prisoners it may be expected that they will soon be released. In compliance with the joint resolutions of the IGili of May laH, I have procured regimen tal flags lor the Pennsylvania volunteers, and have presented them in person to most of the regiments. In other cases, the regiments being on or near the Potomac, I have requested Mr. Cowan, Senator, and Messrs. Grow and Wright members of the House of Representatives, Irom Pennsylvania, to present them in the name ol the Commonwealth. The General Government requested that the States would abstain Irom purchasing arms, a9 their competition was found injurious in the market, and in view of the large expenditures of money in arming and equipping the volun teer f.rce of the S'ate, provided for the de fence ofthe National Government, 1 did not purchase any as authorized bv the 28th sec tion ot the act of the 15th of May, 1861. The State has now quite as many arras as are nec essary to arm al! her volunteer organizations in existence; but, influenced by the threatening aspect of our relations with foreign governments, I have directed the Adjutant General to pro cure arms as soon aa it can be done on reasuna ble terms and without injurious competition with the National Government. Arms have been distributed among the border counties to all the organizations that have been formed to receive them. 1930 arms have beeu thus dis tributed. I have also addressed a ' letter to the Commissioners ol all the border counties, offer ing aims to them as soon as military organiza tions shall be formed to receive them. Betides thus complying with the requirements of the 27 section of the Act of 15th May last, I have deemed it prudent to off*r five thousand arm' to such military organizations as may be form ed in Philadelphia on a plan to be approved by me as Commander-in-Chief. Muskets arid ri fles to a considerable extent have been furnish ed to the Pennsylvania volunteers from the Slate arsenal.—Others have been sent by the United States authorities to arm them befire leaving the Slate. In some cases regiments have gone without arms under assurances Ir.-m the War Department that they would be arm ed at Washington or other near designated points, and that their immediate departure was required. It was thought wise in these cases not to insist on the arms being sent before the regiments marched, as this would have imposed on the government ari unnecessary expense in freight, and would have been productive of delays which might have been seriously detii mental to the public service. Forty-two pieces of artillery with limbers, caissons, forges, am munition wagons, harness and all the nce*sary implements and equipments were furnished by the State to the artillery regiment of the Re serve Corps. Ten of these weie purchased by the State, and their cost has been refunded by j the United Slates. Diligence has been used in collecting arms throughout the State and repair ing and altering them in the most approved man ner. The State has now 62 pieces of artillery, of which 17 ueed repairs. 26,753 muskets and rifles, some of which are in the hands of the mechanics being repaired, 1910 are in the bands of volunteer corps throughout the Stale; 1930 in the possession of County Commissioners, and 1,000 with (be reserve corns of Phila delphia. In addition to this the city of Philadelphia has 9 pieces of rifled artillery, and 4,976 muskets and rifles. The State has aiso in the arsenal at Harris burg. 1,966 sables and swords, and 1,957 pistols, and the city of Philadelphia has 440 sabres, and 326 pistols with the necessarv accountre ment ♦ There is also in me ■>,...■ . -, _ iarge amount of accoutrements and ammuni tion for artillery and small arms. * The Adjutant General is successfully engag ed in collecting arms throughout the State, and it is expected that the number above stated will he largely increased. Probably, at least 5,000 muskets and rifles and several piece* of artillery will be collected. The care which has been bestowed upon the comfort of the volunteers, and the goodness and sufficiency of their supplies of all kinds, and the excellent arrangements of the Medical Department under the control of Surgeon Gen eral Henry 11. Smith, are proved by the fact that more than 60,000 m<*n have been for vari ous, generally short periods at Camp Cuitin siuce the 19th of April last, and that down to the Ist January inst., there died but forty-nine men at that camp, viz, forty-four from sickness, two(belonging to regiments from other Slates,) who had been injured on railroads, two acci dentally killed in Camp Curtin and one shot im Hairisburg. To facilitate the making of allotments of their pay by our volunteers in the field for the support of their families at home. I appoin ted Hun. EJgar Co wan, Thomas E. Franklin and E. C. Humes, Esqs., commissioners to visit the camps ot our men on and south ol the Potomac, and also James Paik and M. W. Beltzhoover, Esqs., commissioners to visit those in Kentucky and elsewhere in the western county, to call the attention ol the troops to the system of al lotment and to encourage theiu in adopting a practical plan for ca-rymg it into effect. The several reports ol these commissioners are highly satisfactory. for. details on the several subjects connected with the military operations of this State, I re fer to the reports of the Adjutant General, Sur geon General, Quarter Master General, Com missary General and Paymaster General which accompany this Message. The duties imposed on me were so onerous that I found it necessary to invite the tempo rary assistance of gentiemen on my staff" to aid me to pel form them. In this capacity, Cols. Thomas A. Scott, Gideon J. Ball and John A. Wright contribu ted their valuable services from the middle of April until they were called away by other duties, Col. Scott remaining untill he became connected with the War Department, Col. Ball until the Ist of June and Col. Wright until the 23d of July; for the time thus devoted to the service of the State they have reiused-to re ceive any compensation. Cols. Joseph D. Potts, A. L. Russell, J. Brown Parker and Craig Biddle were in ser vice up to the 20lh ol December. The Depart ment ot Telegraph and Transportation was un der the exclusive control of Cel. Potts. The system and economy of its management show how faithfully and well he fulfilled his office. It is but just to all these gentlemen that I should bear lestimouy to the nntireing zeal and fidelity with which their duties were performed. The quota ot the State having been more than filled, and her military force organized, I was enabled on the twentieth of December last, to dispense with a personal staff, and the WHOLE NUMBER, 9B*. ' VOL. 5.N8.1P " 1 I temporary arrangement which bacf been nfrda for its employment was then closed. By the 13th section of the Act of tfjp 15th Of May, 1861, J was authorized to draw my war rants on the Treasury for a sum not exceeding $20,000 for compensation to such prions at might be required to aerve the country in a military capacity, &c. Of this fund I hat* drawn from the Treasury $5,500, out of which I paid the compensation ot my personal staff, al so other expenses of iho military department, and the actual expenses of persons employed on temporary service, uone ol whom received ar.y further compensation, and expenses of lh commissions appointed to investigate alleged frauds, &c., and the expenses of establishing military patrols on the Maryland line and five hundred dollars on secret service. My ac count is settled in the oHi.-e ol the Auditor General up to the Ist of December, On that day I had expended $6,400, and except soma inconsiderable paymeuts made since, the bal ance remains in my hands. The report of the Auditor General will ex hibit the items ol the account. An accouut ot military expenditures by the State on behalf ol the United Slates, as tar as the same had then been ascertained and settled by the accounting departments here, was made up to the Ist day of September, 1861, and pre sentee on the 12'h of ihat month at the Trea sury Department ot the United States for set tlement ami allowance. The sum of $606,- 000, has been received from the Treasury De partment on that account. The repayment by the General Government of the expenses atten ding the organization and support of the Re serve Corps, may not be provided for by any existing act of Congress. As theae expenses were incurred by tbe State for the benefit of the Generai Government, and bave been pro ductive of results moat important to tbe welfare and even safety of Ihe country, it would be right that an act of Congress should be passed providing expressly for their repayment. It lies with the Legislature to adopt tbe proper means for directing the attention ol Congress to this subject. Assurances have been received from tbe Treasury Department that the examination of the military accounts of the State will be pro ceeded in without delay, so that the State may receive a ciedit fur the balance due, in time to apply the same towards the payment of her quota ol tbe direct lax. Assuming the com pletion ol this arrangement, if the State shall assume the direct tax (or Ibis year, a saving of fifteen per cent will accrue to her, and no pres ent increase ot her taxation will tie necessary. Whether this credit be given or not, I re commend that the payment of tbe direct (ax be assumed by the State. J— a.sv iiic aiaw ■ooutiirs lUt? t n f (ax there should be such'revision of the tax laws as will hereafter equitably apportion tbe burden among the various interests now" sub ject to taxation. The saving of fifteen per cent, to the people ot the State by the assump tion is a matter worthy of thought, but a more important consideration is that it will enable you who represent all the varied interests of the commonwealth toapprotion the tax in such manner as to bear equally upon all. Our rev enue laws had imposed on real aDd personal property as its full proportion but little more than one-third of the taxes needed for the ordi nary expenditures of the government. By the act of 16th May last, the lax on this species of property has already been incrased one-sixth. Should the State refuse to consume the United States tax the whole burden ol it will fall upon these interests, interests too, most unfavorably affected by the war, whilst other kinds of prop erty and other sources of revenue f judged by our laws able to pay nearly two-thirds ol the present revenues of the Stale, would not be called on to contribute one dollar ol additional tax. The militia system of Ihe Commonwealth is very imperfect. I eecommend ihe establish ment of a commission to frame and report a system more adequate to the exigency of the times. 1 earnestly recommend to the legislature that provision be made lor the military instruction of youth. The appointment ola military In structor in the normal schools, would in a short period give teachers to the common schools who would be comjietent ro train the boys in attendance on them. It would in my opinion be wise also to provide for the purchase or leas ing by the Commonwealth of a building for a military school, and for employing competent instruct.ons at the expense ol the State, requir ing the pupils to delray the other expenses. No pupil sliocld be admitted to this school with out havlftg passed a thorough examination on mathematics and all fitting subjects of instruc tion except the military art proper. I respect fully urge this .subject ou your early considera tion, as one of material perhaps vital import ancy. I have taken measures lo direct the efficient attention ol tbe General Government to tha fortification of the water approaches on the sea board and Ihe lakes, and arrangements are in the course of being effected which it is hoped will be satisfactory in their result. 1 send with this message a copy of a eom muniaation from General Totten, chief of (ha Military Engineer Department at Washington. I have also represented to the Secretary of tha Navy the necessity for floating defenoes on the Delaware, and have his assurance that they shall be prepared at the earliest moment I have had a correspondence with the au thorities and some of the citizens of Erie on the subject ol the defenceless condition of that city, and the part of the Slate bordering on the lake. On examination it i 9 found that there are DO defences on the lake, and that tbe ordnance at the city of Erie was withdrawn by the National Government in the summer of 1861. The secretary of the Navy, on a request made, direct that the crew of the United
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