BY DAVID OVER.
liOVEUm MESSAGE. I
To the Honorable the Senators and .Members of
fhe]House of Representatives of the Common
wealth of Pennsylvania:
GENTLEMEN:—AIthough the year just closed j
has been one of great depression in the business
and monetary affairs of the country, I am hap
py to be able to announce to the Represent.*- j
lives of the People, that the finances of Penn- j
svlvania are in a most satisfactory condition.
The receipts of the Treasury, from all sour- i
ees, for the fiscal year, ending on tho 30th day '
of November, 1858, were §4,139,778 35; and i
the expenditures, for all purposes, during the
same time, were §3,775,857 06. Leaving an ;
excess of receipts over expenditures of §363,-
921 29.
This exhibit shows that there was actually in !
the Treasury on the first day of December, 1858,
the -urn of §393,921 29, more than there was
on the first day of December, 1857. In addi- ;
tiou to this, among the expenditures for the i
year, were
Loans redeemed, §380,306 85
Relief Notes, redeemed, 41,071 00;
lutercst Certificates, " 116 70 ;
Making of the public debt funded
aud unfunded paid during tho
year the cutu of 421,491 55 !
If we add to this the excess of
money on hand, at the eud of the
fiscal year, over what remained
in the Treasury, at the same
time last year, viz: 363,921 29 .
We have the sum of §785,415 81
Rut this is not all. The amount paid ou the 1
public improvements, including damages and
old claims, during the fiscal year,
was §341,036 58;
While the amount of revenue, from
the same source, for the same pe
riod, Was only 95,070 06 |
Making an excess of expenditures
over receipts, which happily we
will bo relieved from iu the fu
ture, of §245,966 52 |
This sum should, also, be credited to the op- ;
orations of the Treasury, during the year, for ;
it was an extraordinary expenditure, which can
not again occur: and was, in fact, a reduction
of the liabilities of the Commonwealth, to that
anion Dt.
If we add this sum to the amount of debt
paid, and the excess of cash ou hand, we have
tor the year, a balance iu favor of the receipts,
over the ordinary expenditures amounting in
the aggregate to §1,031,382 36.
Rut from this, however, should be deducted
the extraordinary receipts, wuieh were,
Ist. Tho amount paid by the Penn
sylvania Railroad Company, on the
principal of the debt due by tLe said
Company, tor the purchase of the
Main Line. §IOO,OOO
2d. The amount received from the
Girard Rank, for loans of she Common
wealth sold by that bank 28,000
In all §128,000
Which, doducted from the foicgoiug aggre
gat3 of §1,031,382 36, leaves tho true balance
of the ordinary receipts over the ordinary ex
penditures for the fiscal year at §903,382 36.
The funded aud unfunded debt of the Com
monwealth, on tho Ist day of December, 1857,
was as follows :
FUNDED DEDT.
6 per cent, loan § 445,180 00
5 per cent, loan 38,773,212 52
44 per ceut, loan 388,200 00
4 per cent, loan 100,000 00
To this should be added 5 per cent,
Coupon Roods sold by Girard
Rank, not before reported, 28,000 00
Total fuuded debt §39,734,592 52
UNFUNDED DEBT.
Relief notes outstanding §146,421 00
Interest certificates do 23,473 82
do. do. unclaimed 4,448 38
Domestic creditors 802 50
Total unfunded debt §175,145 70
Making the entire debt of the Commonwealth
at the period named §39,909,738 22.
The funded and uufunded debt of the Slate
at the close of the last fiscal year, December
Ist, 1858, stood as follows:
FUNDED DEBT.
0 per cent loans, § 445,180 00
5 per cent loa'ns, 38,420,905 67
4 4 per cent loaus, 388,200 00
4 per ocnt loans, 100,000 00
Total funded debt, k §39,354,285 67
UNFUNDED DEBT.
n
Relief Notes outstanding, §105,350 00
Interest Certificates, 23,357 12
do. do. unclaimed, 4,448 38
Domestic Creditors, 802 50
Total unfunded debt, §133,958 00
Making the public debt ou the first of De
cember last §39,488,543 67. Kinco the olosc
of the fiscal year, the Commissioners of the
Sinking Fund have reedcemed of tho five per
cent loan, the sum of §220,132 51, leaving
the real debt of tho Commonwealth, at this
time, funded and uufundc,d §39,268,111 16.
To meet this, besides the ordinary sources of
public revenue, the State owns bonds received
from the sale of the public works, and which 1
have every reason to believe aie well secured,
amounting to eleveu millions one hundred and
eighty-one dollars. Deducting this from the
outstanding debt, it leaves to be otherwise pro
vided for, the sum of twenty-eight millions
eighty-seven thousand, one bundled and eleven
dollars and sixteen cents.
A Weekly Paper, Devoted to Literature, Politics, the Arts, Sciences, Agriculture, &c„ Sic—Terms: One Dollar and Fifty Cents in Advance.
It is believed th?t, with the existing sources
of revenue, and the observance of strict econ
omy, this sum may be reduced, during the cur
rent year, at least one million of dollars.
The present would seem to|be the appropri
ate time, —wbeu our nation is at peace,—and
when health and reasonable prosperity prevail
within our own bojders, —to greatly reduce the
public debt. We have but to carefully hus
band our legitimate resources, avoiding cxtrav
agaut aud unnecessary appropriation?, and prac
ticing a proper economy in all the departments
of Government, to render the entire extinguish
ment of our debt a fixed fact within a very brief
period. To carefully guard the public treasu
ry at this interesting epoch in our financial his
tory, is so manifestly the duty of the public
authorities, that 1 cannot for ouo moment be
lieve that any other policy will be proposed. If
there he any, who, relying on the improved con
dition of the finances of the State, would en
courage the adoption of new schemes for de
pleting tlio Treasury .or would cut off the sources
of our present revenue, and thus reduce it, let
ail such efforts, coming from whatever quarter
they may, be sternly resisted. Let Pennsylva
nia be just before she is geuerous. Let our
good example be . light, in the pathway of our
sister States, as well as an admonition to our
own local governments. This is due alike to
the fav rs which Providence has so bouutifully
bestowed upon us, and lo that high character
for honesty and integrity which has ever distin
guished tiio people of this good old Common
wealth.
ID pursuance of the act entitled "An Act for
the Sale of the State Oau.ils," approved on the
2lst day of April last, 1 did, as the Governor j
of the Commonwealth, on the 19'.h day of May
1858, convey to the Suubury and Erie Railroad
Company, all the public works belonging to the
Commonwealth, then remaining unsold, consist- j
ing of the Delaware .Division—the Upper and
Lower Branch Divisions—the 'Vest Branch Di
vision—and the Susquehanna Division of the
Pennsylvania Canal, with all the property there- j
unto belonging, or iu anywise appertaining, an 1 i
all the estate, tight, title and interest of this ,
Commonwealth therein, for (he sum of three
millions five hundred thousand dollars. To se
cure the payment of this sum, the Suubury and
Erie Railroad Company paid to the State Trea
surer its bends, secured by a mortgage, as di
rected by the act, for the amount of the | tir
•Um .uoncy. The cumpauy, also, complied
with the provisions of the Act which r?qWaa '
it, as additional security, to execute and deliv- j
er to the State Treasurer a tnortgige on the I
Delaware Division for ouc million—a moitgage .
ou the Susquehanna and West Branch Divis- i
ioua for halt a million—and a mortgage on the j
Upper and Lower North Brauoh Divisions for ;
half a million of dollars. The deeds and .
mortgages were all executed under the immedi
ate supervision of the Attorney General, and
were m strict conformity with the requirements
of the law.
After the conveyances were duly executed
and delivered, possession of the canals was given
to the railroad company.
The act further provided that the Suubury
and Erie Railroad Company should uot re-seil
tLe Canals, or any part of them, witout the con
sent of the Governor; and that if arc-sale were
made for a greater sum, in the aggregate, than
tiiree and a half miilious of dollars, seventy
five per centum of the excess should be paid to
the Commonwealth, iu the bonds of the purcha
sers. It was also provided that upon arc-sale
the mortgages given by the Sntibury aud Erie
Railroad Company to the Commonwealth, upon
the Canals, "should be cancelled by the State
Treasurer aud surrendered to the company by
the Governor, ou deposite made by the said com
pany in the office of tbu State Treasurer, of an
equal amount of the bonds of their grantees,
] secured by mortgage of the canal or canals sold
j as aforesaid"'—with a provision that no trans
fcr of securities should be made until the Gov-
I crnor should be satisfied that the new securities
to be given were sufficient to protect the inter
ests of the State; aud thy his written approval
of the change should bo filed in the office of
the Secretary of the Commonwealth.
Sales were undo by the Sunbury and Eric
Railroad Company and reported to iue, under
the oath of the President of the different lines,
as follows :
The Upper and Lower North
Branch Canal, to the North Brauch
Canal Company, for §>I,COO,OOO
The West Branch and Susquehanna
j Divisions, to West Brauch and Sus
i quehatina Canal Company, for 500,000
The Delaware Divisiou, to the Del
; aware Division Canal Company, of
| Pennsylvania, for 1,775,000
In all the sum of §3,875,000
Upon investigation and inquiry, having be
come satisfied that these sales were made for
I fair prices, aud upon such terms, and to such
persons composing the various purchasing as
i sociatious, as to insure the puyuicnt of the pur
chase niouey, they were severally approved.
After the contract for the sale of tiic Dela-
I ware Division had been entered into, and my
eousent had been verbally giveu, and sevuuty
five thousand dollars of the purchase moucy
: had been actually paid by the purchasers, upon
the faith of the coiitraet,and my assent I lure to,
I wa9 iuforined that a higher price had been of
fered, by responsible persons, for the canal.—
But uuder the circumstances, my opinion was
• that the offer came too late, and as the Railroad
Company considered itself bound to consum
mate the agreement by a delivery of the deed
and possession of tbo property to the first pur
chasers, I could not, in good faith, withhold my
assent. The North Branch Canal Company,
subsequent to the purchase of that divisiou,
sold that portion of the Canal lying between
Wilkesbarro aud Northumberland !o the Wyo
ming Canal Company for the sum of nine hun
dred and eighty-five thousand dollars.
BEDFORD, PA., FRIDAY, JANUARY 14, 18-5!).
On the 13th of September, 1858, bonds of]
the'various companies owning the different ca
nals, secured by mortgages, were, in pursuance
of the act, and by my approval, deposited with
the State Treasurer to the amount of two mil
lions of dollars; and the mortgages on the ca
nals given by the Sunbury and Erie Railroad
Company, were cancelled by the State Treasu
rer, and surrendered by roe to the company in
accordance with the directions of the law. At
the same time a settlement was made between
the Commonwealth an 1 the Railroad Company,
by which the latter paid to the State seventy
five per centum of tiie proceeds of the re-sale
over aud above the contract price of three and
a half millions. This amounted to two hun
dred add eighty-one thousand two hundred and
fifty* dollars, aud was paid in the following man
ner, viz :
Ronds of the Wyoming Canal Com
pany, secured by mortgage on the
canal from Wilkesbarre to North
umberland, payable in twenty years
with interest at six per cout. paya
ble semi-annual §281,000
Cash 250
Total §281,250
These bonds are well secured, aud the accru
ing interest and principal, when due, will doubt
less be promptly paid.
From information of a reliable character re
cently communicated to me by the President of
the Suubury aud Erie Railroad Company, it
appears that the prospects of an early comple
tion of that public highway are very encour
aging. A large amount of work lias Been
done on the line of the road during the past
season, and at this time, very considerable p'>r
tions of the road are graded and rapidly np
pto idling completion. It is the opinion of the
President of the company that within two years
the work will bo entirely finished, so that cars
will be runutng directly from the ci'y of Phila
delphia to the harbor of Erie.
When this great enterprise shall be consu
roated, and the desire of its friends finally ac
complished. the payment of the three millions
aud a half of mortgage bonds, which the State
h.s received in exchange for the canals, wil!
unquestionably be well secured—whilst the
railroad, itself, will prove of incalculable ad
vantage to our great commercial emporium as
well as to the important, but long neglected re
gion through which it pusses. Its construction
uty--04.-tiio value of the real
estate of the Lotuuionwealtn iuauj w...v. - t.„
cost, aud develope and briug into use the rich
resources of a country which have hitherto re
mained as they were lavishly strewn by the
j baud of nature. 1 nave an abiding confidence
: mat the result will abundantly prove the wis
' doui of the measure, which, while it guaranteed
: the completion of one of the greatest ituprovo
; inonts ever projected iu the Commonwealth, it,
• at the same time, divorced the State from the
j unprofitable and demoralizing management of
; her railroads and canal*.
Whatevcver differences of opinion may, at
any time, have been entertained in regard to
tbo propriety of the details of the legislation
authorizing the sale of the main lime, or the
branches, it can scarcely be doubted that the
public welfare will, in every respect, bo vastly
promoted by the transfer ot the management of
the public works from the State to individual
owuers.
Tue short experience tint we have had al
ready, proves conclusively that the Common
wealth is greatly the gainer, in a financial poiut
of view, aud it has beeu equally demonstrated
that the people at large have been as well, if
uot better, accommodated, by the change.
It would, in my judgment, be a public cala
mity, if, by the happening of uny contingency,
the Commonwealth should be constrained to
again become the owner, and resume the man
agement of any portiou of the public iinprove
meuts.
The power of the General Assembly to pass
tbo Act of the 21st of April, 1858, relative to
the sale of the State canals was questioned be
fore the Supremo Court of the State, since the
transfer of tbo Canals ; and, after full argu
ment, the Constitutionality of the Act was sus
tained by the unanimous jufigmont of the Court.
Since the sale of the public works, and the
settlement of the principle outstanding claims
against the State, it is obvious that there is no
further necessity for a Hoard of Conal Commis
sioners, or a C.iual Department. 1 thorefore,
recommend the abolition of the board, and that
provision be made for the transfer of the records
to the office of tire Auditor General.
In view of tbo foregoing exhibit of our re
soroes and financial condition, it is apparent that
a mo at interesting era has been reached iu the
his to iy of the Commonwealth. Relieved from
the entangling cuibartassiuents of an extausive
system of internal improvements, the means of
the State are now ample for ail legitimate pur
poses, and her public debt is graduliy but cer
tainly disappearing. From these aud other
j causes, governmental action has become greatly
simplified, and the uatuieof the subjects of its
• operation has changed iu a degree no loss re
markable.
The almost entire disposal of the lauds wl'iuh
belonged lo the State, Las already dispensod
with ouo of the Departments created for their
care, aud will, ultimately, render the other un
necessary, except for preserving the evidences of
their transfer.
The sale of the public works has relieved tho
Executive brauch of the Government of many
of its must responsible utid perplexing duties,
and iu effect, dispensed with one of its most
formidable and difficult departments.
iu the same proportion, the action of the Le
gislature will, if tho representatives of the peo
ple be true to the interests icposeu, audsteruly
refuse to entangle tho public with those numer
ous projects and enterprises which are ooutiuu
ally seeking its alliance, bo simplified and econ
omized, purified and strengthened.
And it is as remarkable as it is propitious,
that an era which has thus relieved tho State
authorities of burthens that consisted, either of
mere material interests, or the care of local ad
ministration, —committing the one to the local
sovereignty of the people, and the other to pri
vate or associalcd enterprize,—should also pre
sent for consideration and promotion intellect
ual and moral claims of peculiar importance.
It is at this period in our history that the sjs
tem of public education challenges the atteution
of t'ue most unobservant. And I shall be much
mistaken in tut cautious but stadlast character
of the people of Pennsylvania, if their Repre
sentatives do not make it the first object of
their solicitude.
The annual report of the Superintendent of
Common Schools will lay before you the present
condition of the Common School System, and
of its operations during the past year. Your
close nod scrutinizing attention is invited to the
details of that document.
Including the city of Philadelphia, it will be
observed, that there were in public schools of
the State, during the year which terminated on
the first Monday of last June, 628,201 pupils ;
these were int'ruotcd during an average term
of a little over five months, in 11,281 schools,
by, 13,856 teachers, at a total cost of §2,427,-
632,41.
Here is a public interest, which,— whether
we regard its ramifications into every portion of
our social fabric, its large cost, the important
powers over the present which it wields, or its
incalculable influence upon the future,-undoubt
edly transcends all others committed to the
caro of the secular authorities. This being the
case, I have no hesitation in asserting that the
time has arrived when its full importance should
be recognized, and that its due administration
should be made the duty of a fully organized
aud effective, as well as a separate department
in the government.
Rut the more caro and promotion of our sys
tem of Common Schools importaut and exten
sive as it obviously is, - should not be the sale
object of such a Department If it is true
that the power to punish crime includes also the
right to prevent it, by providing for the proper
intellectual aud moral trainiug of the people,
it would seem to fellow that tho department
charged with the latter momentous duty should
also bo in possession of all tho sources and sub
jects of information, calculated to shod light
upon the oljeet of its action ller.ee the col
lection* jxraugcineut, and practical deductions
f.... popa'®*;;„ 4 in,liisrrial statistics: from
natural defects, such as deafness ano uutuouews,
blinduess and lunacy , from orimo iu its various
forms and developments ; together with such
control over all the literary and scientific in
stitutions in tLe State, as slnll bring their full
condition into view, should also belong to the
; same Departuien f .
Therefore, 1 most respectfully, lut earnest
ly, urge upon your favorable consideration, at
the present propiteous moment, the organiza
tion of such a Department, in the room of those
for the care of mere matter whoso agency has
been or soon will be discontinued by the on
ward and upward progress of the Common
wealth.
A suitable Department of Publio Instruc
tion, will not, however, of itself, effect all that
is needed in this direction. TLo geuoral re
sults of the Oommou School system, already
cited, show the importance of its nature, aud
the magnitude of its operations. If wc look,
also, into its special statistics, the conclusion
will be equally olear that certain improvements
in its working machinery arc equally indispen
sable.
It is needless to attempt to prove tiie truism
that the properly qualified teacher is the lite
and success of the school. Rut the tacts are
startling, that of tho 12,828 teachers of out
public schools, exclusive of those iu Philadel
phia, only 5,087 are reported as "qualified" for
their important trust; while 5,387 aro returned
as "medium," or such as are on'y tolerated till
better can be obtained ; aud that 2,313 are
stated to bo "unfit." In other words ; of the
569,880 children attending the schools out of
Philadelphia, ouly about 230,000 (less than one
half) are under proper instruction troru iuferior
teachers ; 100,000 are actually in charge of
persons wholly unfit lor the task.
This present? the subject iu a light that can
not be shut out : and, though the great and
commendable efforts feceutly made by the tea
chers of Pennsylvania, for their own improve
ment, are fully recognized, it can not he con
cealed tlrt there is a work yet to he done, in
this relation, which would seem to be beyond
their unaided power to accomplish.
When, however, we look further into the
special statistics of this branch of the system,
the material for improvement is found to be of
the most promising kind. Ot the 12,828 tea
chers of our common schools, 10,389 are under
thirty years of age, and, 10,916 are natives of
Pennsylvania; and a larger proportion thau iu
most of the other States are permanently devo
ted to the profession of teaching. To render
these fit for the positiou to which they aspire
undoubtedly one of the most useful aud honor
able in the world—and to raise up a constant
supply of well uualified successor?, is the wotk
to be done.
Various modes of effecting this object have
been suggested or tried ; but, after mature re*
flection, C 1 am led to prefer that devised by tho
Act of May 20,1858, entitled "An Act to pro
vide for tho due training of teachers for the
Common Schools of the State." It places, in
relation to the State, tho teacher on the same
footing with the members of such ot the other
Darned professions as have been tecognized by
public authority ; and it is to be regretted that
tbe prostration of business and scarcity ot
money, that so soon followed the passage of the
act, had the effect of checking rnaDy laudable
efforts to put its provisions into operation.
I Under these circumstances, docs it uut become
j the duty of the State to afford uW, or at least to
hold out such induccmenls as shall enable this i
measure to be fairly testod 1
The passago of a law guaranteeing the pay- j
meut of a moderate utn to one Teachers' School j
in each of the districts created by the the act ;
of 1857, would no doubt cause a sufficient j
number to establish the efficiency and practica
bility of the plan, to bo completed in a few ,
years ; the money not to be paid till the schools
were in full and appioved operation. It is not
probable that this grant would cause any con
siderable draft on the treasury; but, even if
tho whole twelve schools should ultimately be
established, the boon would neither be out of
proportion to that which has been conceded to
other institutions,nor the number of gradutates
beyond the wants of the community. Up to
the present time, Pennsylvania has appropriated
about §600,000 in aid of her colleges and
academies, and this mainly in the hope of ob
tabling from them teacheis for the common
schools. Though the benefits of tbis munifi
cence have been, in other respects, quite equal
to the amount given, it will be asserted by DO
one that the avowed object has been to any con
siderable extent effected. It would therefore
appear to be time that the aid of the State
should be brought directly to bear iu favor of
the great object so long contemplated.
1 have thus briefly laid beforcyou the condi
tion of our uobie educational system. It will
afford me sincere pleasure to concur in the
adoption of these, or any other measures, for
its perfectiou, that the wisdom of the legisla
ture may devise.
In this country, the want of a school which
shall combine the elements of learning and ag
ricultural labor, and thus adapt itself to the
education of the farmer, has been most serious
ly felt: for, whilst our many colleges well fill
the usefulness in their appropriate sphere of
influence, it uiu3t be conceded that the training
they impart is badly adapted to the art of
practical agriculture. In Pennsylvania that
interests is so important as to demand at all
times our anxious attention, and active support.
" The Farmers" High School of Pennsylvania,"
lately projected and planned by a few public
spirited individuals, and which has received, to
some cxtcut, tho patronage of the State, and
the contributions of a number of our patriotic
citizens, is destined to afford a place where
young men may be educated at an expense com
mensurate with their mean?, and to -a condition
qualifying them for the pursuit of the business
of the farm. Here, whilst daily occupation
will train the body* to the ability to labor, and
e "~ 1 ttx> unviable faeliuc that he
contributes to bH own support and euocjuni,,
it will instruct and enlarge his mind, that may
give force and effect to all his future efforts.—
The design of the institution is to afford a school
where boys may be thoroughly educated in all
the branches of natural science, and, at the
same tiuic, be murod to the performance of la
bor; so that at their graduation they may return
to their parents abundantly prepared to join
the domestic circle, to give a right direction to
the business of agriculture, aud act well their
part iu every department of life. An object
so fraught with usefulness is entitled to the
I highest commendation.
The application of scientific principles to the
' practical purposes of life, is hut realizing the
full benefit of those laws of nature, to discover
and to profit by which is undoubtedly one of
the great ends of human reason. The more
tbis important object is held in view and affect
ed by our higher institutions of learning, tbe
more valuable and useful will they become.—
The Polytechnic College of Pennsylvania at
Philadelphia, is founded on this basis : and its
uttempt to popularize science, and connect high
acquirement with practical ability, is presented
to your favorable consideration.
Under a resolution of the last llouso of
Representatives a committee was appointed by
the Speaker of the House to examine the state
and condition of several Ranks chartered at
the session of 1857. The resolution directed
the committee to report to the Governor the
result of its examination within ninety days af
ter the adjournment of the Legislature. On
the 20th of July last, the report of the com
mittee, together with tho accompanying evi
dence, was filed in the office of the Secretary
of tho Commonwealth, a copy of which will be
laid before the House of Representatives.
In view of the facts reported by the com
mittee, in reference to the organization and
subsequent management, of the Tioga County
Rank, the Crawford County Rank and the
Rank of Shamokin, I would recommend a care
ful inquiry into the present condition of these
institutions, and if it shall bo ascertained that
the public is likely to suffer injury from the
further existence of either, a speedy aud cer
tain remedy may be found iu a legislative re
peal of tho rights and privileges granted by
the acts of incorporation. The power to alter,
revoke or annul, the charter of a bank whenev
er its continuanco may, in the opiuion of the
legislature, be injurious to the citizens of the
Common wealth, is expressly given by the Con
stitution to the General Assembly, to be exer
cised, however, iu such manner as that no in
justice shall be done to the corporators.
Obedieuce to this constitutional injunction
would require that in the event of a repeal of
the charter of a bank, care should be taken
that the rights of the stockholders to the sur
plus assets of the bauk, after payment of its
debts, were protected; aud that suitable provis
ions should be made for settliug its affairs.
The iujuuetion contaiued in the Constitution,
that the repeal or revocation of at ank charter
shall be in such manner as to work no injus
tice to the corporators, is not a qualification of
the power to revoke, or annul the charter; but
it is simply a requirement that, in taking away
tho charter, the rights of tbe stockholders shall
be protected, so fur as is consistent with the
net of repeal itself. Ido not doubt that the
Legislature may alter, revoke, or annul, auy
existing bar.k charter, whenever in its oprniou
VOL. 32, NO. 3.
the continuance of the charter may be injuri
ous to the citizens of the Commonwealth. Any
other construction of the constitutional reser
vation would make the interests and safety of
the public subservient to the gain of the pri
vate etoekholder. Believing, therefore, that
there is no Want of power, 1 cannot refrain
from expressing my decided opinion, that when
ever it is clear that a bank is insolvent, or in
great danger of becoming so, or whenever its
privileges are so nsed or abused as to serious
ly prejudice the interests of the public, it is the
duty of the law-making power to protect the
people, by destroying its corporate existence.
In this connection I deem it my duty to re
iterate the views expressed in my inaugural ad
dress. 1 then stated, as my decided opinion,
that there should be no further increase of
banks or under the present sys
tem—expresSCu a hostility ro the issue
of notes of a ?a^(Pp!noniiuation—and recom
mended snch a change in our laws relative to
banks, their organization and managment, as
would at leawiWnre beyond all question the
prompt redejjnfttb of all bills or notes put in
circulation jflpßc several bankiug institutions
of the Commonwealth.
Well satisfied of the imperfection of exist
ing laws relative to banks and banking, 1 deem
it a duty to inform the General Assembly that
I cannot give the Executive approval to aDy
bills chartciing additional banks without a rad
ical change in the entire system. It is but just
to state that in my opinion a large majority of
the banks of the Commonwealth are well and
safely managed, and in a perfectly sound con
dition; but this is due to the honesty and intel
ligence of those having charge of them, rather
than to the efficiency of the laws. Under the
management of incapable or dishonest men, ex
perience has shown, that there is really but lit
tle if any security to the public in the regula
tions and restrictions uow to be found in our
bauking code. True wisdom dictates a refor
mation.
The ruinous losses which have fallen upon
the people during the financial pressure of the
past eighteen months, suggest the necessity of
preventing their recurrence. Although
causes may have combined to produce fIMK
disasters, it is too plain to admit of
our banking system has been one of theflHT
promiuent. Tho value of the precious nWlaTs
—the prices of property —and the wages of la
bor—are always affected by the abundance or
scarcity of the paper medium received as a sub
stitute for gold and silver coin. The power of
Hie States to authorize a paper currency, thro'
ie agency v. r . r
j and acknowledged,throughout the Union,andis
uo longer an open question. 15ut it must be ac
i knowledged that the power has been greatly
abused. The delegation of this attribute of
sovereignty to a number of irresponsible cor
porations, without proper checks to limit its ex
ercise, and without providing any security
whatever for the redemptiou of the issues thus
authorized, has been attended with evils of tho
most alatming character. These corporations
are practically made the exclusive judges of the
i amount of paper currency to be furnished to the
; people, and have the exclusive power to con
tract or expand their circulatiou at pleasure.—
Uepositors and other ordinary creditors of
; bauks, need no legislation for their protection.
Every one who Las direct dealings with these
institutions, either a9 depositor or otherwise,
! enters iuto such engagements voluntarily, for
his own advantage, and uiay be safely left to
bis own vigilance, aud the ordinary remedies of
the law, for his protection, liut the millions of
people engaged in industrious pursuits, the
farmer, the mechanic, the merchant nod the ln-
I boring man, are under an imperious necessity
to receive for their merchandize and their labor
the ordinary paper currency of the country. It
is impossible for persons of this description to
investigate the concerns of every inatitution
whoso notes are iu circulation. Hut no inves
tigation could save them from the losses arising
from the defaults and frauds ot bauk officers
1 and the insolvency of bank borrowers.
The note holders of banks h.ivo peculiar
i claims to the protection of the goverumont. —
| Tbcy are involuntary creditors, who are forced
: to receive the notes authorized by the govern
ment. Tiiey have no direct dealings with the
banks. They do not trust the banks from any
: hope of gain. They have no profit in passing
i the notes which they would not have bad iu
pissing gold and silver coin. They constitute
| almost the entire community, and the humble
; and ignorant arc always the greatest sufferers
! when a bank fails to redeem its notes. The
' people are therefore deeply interested in the
, security of the circulation allowed by law, al
i 'hough many of them may never have had a
share of bauk stock, or been witbiu a hundred
miles of its place of business. The Govern
ment that authorizes the issue of a paper cur
rency is under a high moral obligation to re
qire ample aud available security for its re
demption.
The certificates of loan issued by the Gen
eral Government, or by this Commonwealth, at
a value to be fixed upon, with the power to re
quire additional desposits of security, from time
to time, as the loans depreciate in the market,
would be us safe and available as any guaranty
which could be provided.
A law requiring all issues of banks hereafter
organized, to be secured by the pledge of these
loans, would enhance the value of tho present
loans, uDd thus give the holders a premium not
contemplated when they b9iatnc purchasers,
I and for which thoy never gave any valuable
! consideration. This enchained value would bo
derived from a privilege grautod by the State,
and the State ought, therefore, to have the ben
efit of it, as far as this may be secured by leg
islation. The receut amendment of tho Con
stitution circumscribes the power of the Legis
: lature iu creatiug State debts, with an exception
lin favor of the debts, contracted "to redeem