The globe., January 13, 1858, Image 1

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p 1 1.44=f 41 (0 =lo* 41= 121ciel'AtO ;4 foal
To the Honorable the Senators and _embers
of the House of Representatives of the Gen
eral „Assembly.
GENTLEMEN the suffrage of your fel
low citizens, you have been charged with the
duty of representing them, and the interests
of the Commonwealth, in the Legislative
branch of the Government. The responsibil
ities you have assumed and the duties to be
performed should ever be regarded. as para
mount to every selfish or partitan considera
tion. - The prosperity of the State and the
general welfare of the people, should receive
your earnest attention, and be the aim and
end of your legislative action. To promote
these objects, I will cheerfully, in every legal
and constitutional manner, during the con
tinuance of nay official term, co-operate with
you.
The past year, with the exception of recent
financial embarrassment, has been one of gen
eral prosperity. • No foreign wars—no frater
nal strife, has disturbed the peaceful quiet of
our homes. Unwonted health, with its bles
sings, has been vouchsafed to us. Seed time
and harvest have not failed—the earth bath
yielded her increase, and richly rewarded the
labor of the husbandman. The Arts and
Sciences have been advanced, and the great
interests of Education, Morality and Religion
liberally encouraged and sustained. Our na
tion in its unity—our free institutions in their
integrity, with our rights and privileges, civil
and religious, have been preserved. Recog
nizing in these blessings the goodness of Al
mighty God, we should render to llitn the
homage of grateful hearts and the devotion
of cur sincere praise ; and whilst humbly ac
knowledging his mercies to us as a people,
let us still further express our gratitude to
Min, by acts of individual charity and kind
ness to the poor and helpless in our midst.—
Sorrow now fills the hearts, and adversity
darkens the homes of many of our citizens.
Our liberality should be generous ; our bene
factions munificent; and thus whilst the
wants of the poor and suffering are relieved,
the generous giver will find a rich reward in
the pleasure that results from communicated
good.
The finances of the Commonwealth are in
a very satisfactory condition. During the
past year every demand upon the Treasury
has been promptly paid, from the revenues
derived from the ordinary sources. The op
erations of this Department will be presented
to - you, in detail, in -the report -of -the-- State
Treasurer.
For the fiscal year ending November 30th,
1857, the receipts at the Treasury, including
balance in the Treasury on the first day of
December, 1856, of one million two hundred
and. forty-four thousand seven hundred and
ninety-five dollars and forty-two cents, (1,224,-
795'42) were five millions nine hundred and
thirty-tivethousandthree hundred and eighty
three dollars and twenty-six cents. ($5,935,-
383 26.) The aggregate expenditures for the
same period, were five million four hundred
and seven thousand two hundred and seventy
six dollars and seventy-nine cents. (5,407,-
276 79. Balance in the Treasury December
1, 1857, five hundred and twenty-eight thous
and one hundred and six dollars and forty
seven cents. ($528,106 47.) Excluding the
balance in the Treasury on the first day of
December, 1856, the receipts from all sources
were four million six hundred and ninety
thousand five hundred and eighty-seven dol
lars and eighty-four cents. ($4,690,587 84.)
The ordinary expenditures for the same period
were three million nine hundred and ninety
two thousand three hundred and seventy dol
lars and twenty-nine cents ($3,992,570 29;)
exhibiting an excess of receipts over expendi
tures of six hundred and ninety-eight thous
and two hundred and seventeen dollars and
fifty-five cents, ($698,271 55.) The extraor
dinary payments for the year, were one mil
lion four hundred and fourteen thousand nine
hundred and six dollars and fifty cents, (1,-
414,906 50,) as follows to wit: To the com
pletion of the Portage Railroad, forty-nine
thousand sixty-one dollars and ninety-two
cents, ($49,061 92 ;) to the North Branch ex
tension, one hundred and thirty-eight thous
and seven hundred and ninety-eight dollars
and eighty-five cents; ($138,798 85;) to relay
the South Track of the Columbia Railroad,
ninety-one thousand four hundred and five
dollars and forty-six cents, ($91,405 46;) to
enlarge the Delaware Division, forty-six thous
and two hundred and sixty-three dollars,
($46,263 00;) for motive power in 1856, eighty
one thousand six hundred and four dollars
and twenty-four cents, ($81,604 24;) for re
pair in 1855 and 1856, forty-nine thousand
five hundred and sixty-four dollars and sev
enty-eight cents, (49,564 78;) for the redemp
tion of loans eight hundred and twenty-thous
and and ninety-seven dollars and three cents,
($820,097 03 ;) damages on the Public Works,
forty-six thousand five hundred , a,nd fifty-two
dollars and sixty-five cents; ($46,552 95 ;) old
-claims on the Main Line adjusted under the
several Acts of Assembly forty-six thousand
five hundred and forty-eight dollars and fifty
seven cents, ($46,548 57,) and for the new
State Arsenal and -Farmers High School,
forty-five thousand dollars, ($45,000 00.)
The interest on the funded debt, due in
February and August last, was then prompt
ly paid, and that falling due in February
next, will be paid out of available means now
in the Treasury. By virtue of the provisions
of the Act of the 3d of October, 1857, enti
tled " An Act - providing for the Resumption
of Specie Payment, by the Banks, and for
the Relief of Debtors," the State Treasurer
will be enabled to pay the interest due in
February, in specie or its equivalent. The
credit of the Commonwealth has been fully
and honorably sustained. The promptness
with which every - legitimate demand upon
the Treasury has been met has inspired pub
lic confidence in our securities ; and although
recent and existing financial revulsion may
embarrass the operations of the Treasury,
and reduce to some extent• the revenue, yet
the ability of the State to meet her engage
ments and maintain her credit, under an
honest and economical administration of her
finances, is undoubted. The honor and credit
$1 60
75
. 50
WILLIAM LEWIS,
VOL. XIII.
of the State must and can be preserved in
tact.
The Commissioners of the Sinking Fund,
report the sum of four hundred and fourteen
thousand nine hundred and twenty dollars
and twenty-nine cents, (414,920 29) as now
in the Treasury to the credit of that fund.—
This amount will be applied to the redemp
tion of Relief Notes ; yet in circulation, and
to the payment of the funded debt of the
Commonwealth.
The Commissioners of this fund, on the
7th day of September last, reported to me
that tho sum of one million forty-two thous
and eight hundred and fifty-seven dollars and
sixty-four cents, ($1,042,857 64) of the debt
of the Commonwealth, was held by them, as
follows—viz :
Loans of I9th April, 1853, over due, tempo
rary • $400,000 00
Loans of 9th of May, 1854, over due, tempo
- rary 164,000 00
Certificates of stock, loans of April 11, 1848,
6 per cent • •
_
Certificates of stock, loans of carious dates,
5 per cent 9,316 64
Relief Notes cancelled and destroyed 373,040 00
" "in Treasury, set aside for cancella
tion 30,000 00
Total
As required by law, I directed the certifi
cates and evidences of this indebtedness to be
cancelled ; and on the 19th of September,
1857, issued my proclamation declaring the
payment, extinguishment and final discharge,
of one million forty-two thousand eight hun
dred and fifty-seven dollars and sixty-four
cents ($1,042,857 64) of the public debt.
In addition to the amount reported to be in
the Treasury to the credit of the sinking fund,
and applicable to the payment of the public
debt, the Commissioners of the fund now
hold the sum of seven and one half millions
of dollars ($7,500,000 00) bonds of the Penn
sylvania Railroad Company, pledged by law
to the payment of the funded debt of the
Commonwealth.
By the 4th section of the 11th article of the
Constitution, as amended and ratified by a
majority of the qualified voters of the State
at the general election held on the second
Tuesday of October, 1857, it is made the
duty of the Legislature at its first session af
ter the adoption of this amendment, to create
a Sinking Fund, which shall be sufficient to
pay the accruing interest on the present pub
lic debt and any additional debt thereafter
constitutionally contracted, and annually to
reduce the principal thereof by a sum not
less than two hundred and fifty thousand dol
lars, ($250,000 00) which "Sinking Fund
shall consist of the net annual income of pub
lic works from time to time.-owned by the
State, or the proceeds of the sale of the same,
or any part thereof, and of the income or pro
ceeds of sale of stocks owned by the State,
together with other funds or resources that
may he designated by law. The said Sink
ing Fund may be increased from time to time
by assigning to it any part of taxes or other
revenues of the State, not required for the
ordinary and current expense of government,
and, unless in case of war, invasion or insur
rection, no part of said Sinking Fund shall
be used or applied otherwise than in extin
guishment of the public debt, until the
amount of such debt is reduced below the
sum of five millions of dollars," ($5,000,-
000.)
This being the first session of the Legisla
ture since the adoption of this amendment,
the duty therein enjoined devolves upon you,
and should be promptly and faithfully dis
charged.
The funded and unfunded debt of the State,
including temporary loans on the first day of
December, 1856, as per Reports of Auditor
General and State Treasurer, was as follows,
viz :
6 per cent. loans
5 •b IC CC
.....
43.4“ .....
4 cc cc
Total funded debt
UNFUNDED DUE.
Relief notes in circulation $220.550 00
Interest certificates outstanding 21,891 37
" 4,443 33
Domestic creditors 1,104 00
Balance temporary loan ; April
19, 1853 400,000 00
Balance temporary loan, May
9,1854 134,000 00
Total unfunded debt
The funded and unfunded debt, at the close
of the last fiscal year, December 1, 1857, was
as follows, viz :
6 per cent. loan
5 44 .4
4 3 / 2 .4 4. 4:
4 " "
Total handed debt
UNFUNDED DEBT.
Relief notes in circulation 5146,421 00
Interest certificates outstanding 23,473 82
is u unclaimed 4,448 3S
Domestic creditors 802 50
Total unfunded debt
Total debt December 1, 1857
Total debt December 1, 1556
(4 6( 1, 1557
Decrease during late fiscal year
These statements exhibit the gratifying
fact, that during the past fiscal year, the pub
lic debt has been reduced eight hundred and
twenty thousand ninety-seven dollars and
fifty-five cents. During the same period
large appropriations and payments were made
on account of our public improvements, for
old and unsettled claims adjusted under the
act of last session, and for other extraordi
nary purposes.
The condition of the Treasury prior to the
suspension of specie payments by the Banks,
justified the appropriation of at least two
hundred thousand dollars more in payment
of the public debt, and arrangements were
made by the Treasurer, under the direction
of the Commissioners of the Sinking Fund,
to liquidate that amount ; but after the sus
penjion, and the consequent financial embar
rassment of the country, the proposed pay
ment, from prudential motives, was post
poned. had this payment been made, in ad
dition to the payments already reported, the
statements and-calculations submitted in my
last annual Message in relation to the early
payment and final extinguishment of the
public debts would thus far have been sus
tained by their actual verification. The causes
that prevented their realization, it is believ-
66,501 00
$1,042,857 64
FUNDED DEFT.
.$ 511,781 00
38,866,994 50
...... 388,200 00
100,000 00
$39,866,973 50
$40,701,835 25
FUNDED DEBT.
$ 445,180 00
38,773,212 52
388 7 200 00
100,000 00
_ $30,700,592 52
$32,881,738 22
...........$40,701,835 25
....... 39,881,738 22
$820,097 55
ed, will soon cease to affect injuriously the
revenues of the Commonwealth. Actuated.
by that indomitable energy that has ever
characterized the American people—faltering
for a moment, but not disheartened by the
adverse circumstances that surround us—
roused to more vigorous action by disaster
and defeat, our progress cannot long be
checked, nor our prosperity long be inter
rupted. Confidence, the sensitive, yet pow
erful agency, that binds in unity and strength
the great financial, commercial and indus
trial interests of our country and the world,
has been suddenly impaired, producing fi
nancial and commercial distress, and affect
ing the revenues of the Commonwealth; but
with the advantages resulting from the rapid
development of our resources during the last
quarter of a century—the immensely valua
ble increase of our agricultural, mining and
manufacturing industry during the same pe
riod—the abundant harvests of the past year
—our completed improvements, and all, the
elements of material wealth in our midst, its
restoration at an early period is not proble
matical. Returning confidence will be the
herald of returning prosperity. Notwith
standing, then, the present embarrassment
and gloomy condition of the country, after a.
careful consideration of the present and pro
spective condition of the finances and re
sources of the Commonwealth, I cannot hesi
tate to re-affirm my belief, "that the time is
not far distant when Pennsylvania will stand
redeemed from the oppression of her public
debt, and her people be relieved froth a tax
ation
imposed to meet its accruing interest
and maintain the faith and credit of the
Commonwealth," and that "by practising
strict economy in all departments of the Gov
ernment—avoiding extravagant expenditure
—refusing to undertake any new schemes of
internal improvement, and holding to a rigid
accountability the receiving and disbursing
agents of the State, the realization of these
views may be anticipated with confidence."
As corroborative of the opinion now and
heretofore expressed, a brief review of the
operations of the Treasury during the past
three years, as connected with the payment
of the delft of the Commonwealth, may not
be inappropriate. In my first annual mes
sage to the Legislature, the fact was stated,
that during the three years, intervening be
tween December 1, 1851, and December 1,
1854, the public debt had been increased
one million, five hundred and eighty-four
thousand, three hundred and fifty-nine dol
lars and thirty-four cents ; and that the total
debt at the close of the fiscal year, December
1, 135.1, An. tj-viut: auiflivi.c,cisx
and ninety-eight thousand, five hundred and
ninety-five dollars and seventy-Four cents,
(41,698,595 74.) At the close of the late fis
cal year, December 1, 1857, three years
later, the funded and unfunded debt, as be
fore shown, was thirty-nine millions, _eight
hundred. and eighty-one thousand, seven
hundred and thirty-eight dollars and twenty
two. cents, (39,881,738 22,) decrease in three
years, one million, eight hundred and six
teen thousand, eight hundred and fifty-seven
dollars and fifty-two cents, (1,816,857 52.)
Thus in three years the public debt has
been decreased, by actual payment and. with
out resorting to the expedient of temporary
loans, one million, eight hundred and sixteen
thousand eight hundred. and fifty-seven dol
lars and fifty-two cents. If to this be added
the sum of four hundred and fourteen thou
sand, nine hundred“ and twenty dollars and
twenty-nine cents $(414,920 29) now in the
sinking fund, and applicable to the payment
of the funded debt, the reduction will be two
millions, two hundred and thirty-one thou
sand, seven hundred. and seventy-seven dol
lars and eight-one cents, ($2,231,777 81.)
These facts are not only gratifying, but en
couraging. It has already been stated that
there is in the Sinking Fund the sum of sev
en millions five hundred thousand dollars—
bonds of the Pennsylvania Railroad Com
pany, bearing interest at the rate of five per
centum per annum, payable semi-annually,
and pledged to the payment of the funded
debt. If this sum be added to the reduction
before stated, we have presented to us a vir
tual, if not an actual decrease of the State
debt, of nine millions, seven hundred and
thirty-one thousand, seven hundred and sev
enty-seven dollars and eighty-one cents, (9,-
731,777 81;) showing the total funded and
unfunded debt of the State on the first day
of December, 1857, to have been thirty-one
millions, nine hundred and sixty-six thou
sand, eight hundred and eighteen dollars
and forty-one cents, (31,966,818 41.)
In anticipation of the sale of the Main
Line and the decrease in the public debt, the
State tax, by an act of the last regular ses
sion, was reduced from three to two and one
half mills on the dollar; a reduction equal-to
one sixth of the tax imposed for State purpo
ses prior to that act. These facts speak for
themselves. Well may the people be con
gratulated on such an auspicious beginning
in the process of liquidation, and well may
they with confidence anticipate the day of
their deliverance from State taxation. Finan
cial and. commercial embarrassment may
postpone,—nothing but unwise legislation,
and the imprudent or dishonest management
of our finances, can prevent the early reali
zation of their well founded anticipations.
The condition of the public works, their
general operation, the receipts and expendi
tures during the past fiscal year, will be pre
sented to you in detail in the Report of the
Canal Commissioners.
831,859 75
175,145 70
The total receipts at the Treasury from the
public works, for the year ending November
30, 1857, including receipts from the Main
Line up to the first day of August last, were
one million three hundred and eight thou
sand five hundred and ninety-eight dollars
and sixty-two cents, ($1,308,598 62.) The
aggregate expenditures for the same period
were one million three hundred and twelve
thousand seven hundred and five dollars and
sixty-seven cents, ($1,312,705 67;) the ex
penditures exceeding the revenues four thou
sand one hundred and seven dollars and five
cents, ($4,107.05).
The receipts at the Treasury from the sev
eral Divisions wore as follows, viz : •
HUNTINGDON, PA., JANUARY 13, 1858.
-P.ERSEVERE.-
Main Line, to Augustlst,lBs7 $796,550 33
Susquehanna and North and West Branch Divi
sions 237,718 95
Delaware Division 224,329 34
The receipts from the Delaware Division
are less than those of the previous year. The
completion of rival Railroads and other
causes have lessened the receipts from this
important division of our public works; and
it is feared will continue to decrease them.—
Its management has been satisfactory, and
compared with other divisions of the public
improvements, economical. The net revenue,
at the Treasury, was $174,001 87, a decrease
of $90,093 53, as compared with the receipts
of the preceding year. In addition to the or
dinary expenditures, the sum of $46,263 was
paid for the enlargement and improvement
of this division.
The North Branch Extension of the Penn
sylvania canal, although so far completed in
the fall of 1856, that boats freighted with
coal and products, were successfully passed
through its entire length from Pittson to the
Junction canal, yet in consequence of a large
portion of the "Horse Race Dam" having
been carried away by the freshets of last
spring, business on the canal was suspended
the greater part of the past year. It was re
paired during the summer, and in the fall
business was resumed along its entire length.
Soon after, the same dam was again exten
sively injured by a sudden and heavy fresh
et, and the greater
_part of the canal render
ed useless for business. An appropriation
will he required to re-construct the dam.
This canal, although useful and valuable,
appears to be doomed to failure and disaster.
These are the fruits of former mismanage
ment and fraud in its construction. Every
effort has been made to repair the errors of
its early management, and to complete and
render useful this division of our public
works. Under proper management it can be
successfully accomplished. .
In pursuance of the act of the 16th of May,
1857, providing for the sale of the Main Line
of the public works, after giving the notice
required by law, I caused the said Main Line
to be exposed to publid sale at the Merchants'
Exchange, in the city of Philadelphia, on the
25th day of June last, and sold the same to
the Pennsylvania Railroad Company for the
sum of seven millions five hundred thousand
dollars the highest price bid for the same,
and the minimum price fixed in the act.
After a full compliance by the purchasers
with the conditions of the act authorizing the
sale, and the delivery of the bonds in num
ber and for the amounts equal to and falling
due at the time provided for the' payment of
th - e ro_enctativet instnirnAntg.peretary of
the Commonwealth, on the 8 st ay o July,
A. D. 1857, as directed by the act, transfer
red, under the great seal of the State, to the
Pennsylvania Railroad Company, their suc
cessors or assigns, the whole Main Line of
the public works between Philadelphia and
Pittsburg, together with all the right, title
and interest, claim and demand, of the Com
monwealth of Pennsylvania to all property,
real, personal and mixed, belonging to or
used in connection with the same by the
Commonwealth of Pennsylvania ; and the
purchasers having given notice of their rea
diness to take possession of the said works,
possession of the same was accordingly de
livered to the Company on the first day of
August last, of which notice was given to all
Superintendents and Agents of the Common
wealth, by proclamation bearing date the 31st
day of July, 1857, as required by the law
authorizing the sale.
The bonds of the Pennsylvania Railroad
Company, in the sum of seven and one half
millions of dollars, were received by the
State Treasurer and are held by him for the
Commissioners of the Sinking Fund; the en
tire proceeds of the sale being required by
the 12th section of the act to be paid to the
Sinking Fund and applied to the payment of
the State debt.
I cannot forbear congratulating the people
of the Commonwealth on the consummation
of this sale. Public sentiment as expressed
through the ballot-box, and in other forms
equally significant, demanded it—public po
licy and the interest of the Commonwealth
required it. It is done. The many approve;
few complain, those most who have gained
an unenviable reputation by a, reckless disre
gard of the public interests, as exhibited in
the extravagant, useless and fraudulent e3:-
penditures of the public money for selfish or
partizan purposes.
The sale of the Main Line has directed pub
lic attention to the importance and necessity
of disposing of the remaining divisions of the
public improvements, The reasons and pol
icy that required and justified the sale, of the
one, apply with equal force to the sale of the
other. The propriety of separating the State
from the care and control of the public works,
is not only evident to all who have given the
subject a candid and impartial consideration,
but the necessity is clearly established, by
the history of their construction and manage
ment. They have failed to be a source of
revenue to the Commonwealth, and if retain
ed by the State, wily require an expenditure
in their repair and management, largely ex
ceeding any revenue, that under the most fa
vorable circumstances, can be derived from
them. In any phase of the question, this
separation is desirable, but in connection
with the payment of the public debt, and the
reduction of State taxation, it becomes an
object of more than ordinary interest. A
sale, at the earliest practicable period, of the
whole of our public works, for a fair consid
eration, upon terms just and liberal to the
purchasers, and at the same time amply pro
tective of the rights and interests of the peo
ple, should be authorized by the Legislature.
Such sale, with the application of the pro
ceeds to the payment of the public debt,
would secure its still more rapid entinguish
ment. The subject is recommended to your
unbiased consideration.
The law incorporating the Pennsylvania
Railroad Company imposed a tax of three
mills, per ton, per mile, on all tonnage pass
ing over that road, as an equivalent for any
decrease in the revenues of the Common
wealth, that might arise from the anticipated
competition of the road, with the business of
the Main Line of the public improvements.
This tax is, not imposed upon the Company,
but upon the tonnage, and is paid by the
owners of the freight transported over the
road; the company acting as agents in its
collection and payment to the State. It is
virtually a tax upon the trade and commerce
of the Commonwealth, and upon the com
merce of other States whose productions seek
an Etultern market over this road ; and thus
by increasing the rate of charges and the
cost of transportation the produce of the West
is forced upon the competing railroads of
other States and to other markets than our
own. The necessity that required this tax,
as regards the Comonwealth and her improve
ments, has ceased. Its continuance can only
be justified as a revenue measure. It should
be the policy of the State to invite the trans
mission of the products of other States thro'
her territory to her own markets, and, there
fore, the propriety of relieving the trade and
business of the Commonwealth and country
from this tax upon it, is respectfully submit
ted for your consideration.
In consequence of the suspension of specie
. ayments by the Banks of this and the other
States of the Union, and the financial embar
rassment and general prostration of business,
I deemed it my duty to call, as authorized by
the Constitution, an Extra Session of the
Legislature, to meet at Harrisburg on the
sixth day of October last. Although the re
lief provided by this extraordinary session of
the General Assembly, was not as ample as
the exigency of the case required, yet it was
productive of many beneficial results, and
served to allay the intense excitement and
alarm that pervaded the entire community.
By the act providing for the resumption of
specie payments by the Banks, all banking
institution accepting the provisions of that
law, were required to pay into the Treasury
one-fourth of one per cent. on their capital
stock; the amount realized by the payment
of this bonus has not only defrayed all the
expenses of that session, but will leave a bal
ance in the Treasury of not less than thirty
five thousand dollars—a result certainly not
injurious to the finances of the Common
wealth.
My views expressed in former communica
tions on the subject of banks 'and banking
capital, in their relations to the currency and
the general interests of trade, remain un
changed. However diverse our opinions
may be on this subject, it must be admitted
by all, that the banking and credit systems
are so intimately interwoven with the busi
ness and commerce of the country, that their
sudden separation, or a rash innovation,
w.oull produce consequences of fearful mag
rutucte. Tat - the present - sy - stem or-munimg
is pecfect, is not pretended; that it could be
essentially modified and improved, will not
be denied, The present derangement of the
currency may and will suggest the necessity
of reform, not only in the system itself, but
in the management of our banking institu
tions.
• -
Unlimited credits by corporations or indiz
viduals have and will ever be an unmitigated
evil. They contribute to bank expansions,
rash speculations, extravagant living, and
excessive overtrading ; always sure to be fol
lowed by ruinous revulsions. What the re
medy should be, I do not deem it my pro
vince, under existing circumstances, to sug
gest; but to be permanent and effectual, it
must accord with the natural and necessary
laws of trade. The currency of the country
forms no exception to these laws, and should
be left to their operation and control, so far
as may be consistent with the public good.
It is, therefore, that a system of free bank
ing, based on undoubted public securities,
and coin in such proportion to circulation and
deposites as may be deemed sufficient to se
cure their conversion into specie, on attend,
with proper limitations and restrictions, is
deemed preferable to the present system.—
Its introduction would correct many existing
abuses not only in the system itself, but in
the present mode of banking. These ques
tions. however, with the remedies necessary
to prevent a recurrence of the evils tinder
which we now suffer, together. with the na
ture and extent of the relief, if any; that may
yet be required by the Banks of the Com
monwealth, to enable them to resume the
payment of their liabilities in 'specie, are all
referred to the wisdom of the Legislature.—
They are practical and important business
questions, and as such should receive your
intelligent consideration:
The present condition of our Comirionwealth
and country deserves at least a passing re.:
mark, A severe financial revulsion has oc
curred, inducing a suspension of specie pay
ments by the Banks, not only of this Com
monwealth, but of all the States of the Union,
deranging the currency and affecting disagz
trously all the great interests of commerce
and the industrial pursuits of the citizen.—
Labor is without employment, and thousands
of strong active men are now asking for work
or bread. The causes assigned for these
evils are almost as various as the interests or
prejudices of those who undertake their ex
plication. To whatever cause or causes they
may be referred, it is neither just nor proper
to charge all our present financial and com
mercial distress to the Banks and their man
agement. However much they may, have
contributed, other causes have operated still
more directly and powerfully to produce
these results; and among them first in im
portance and influence is the present system
of low duties, in connection with the ware
housing system, adopted as the policy of the
General Covernment in 1856. The abandon
ment of the protective policy, as embodied in
the Tariff act of 1842, was resisted by Penn
sylvania with a unanimity almost unparal
leled in her history. Her representatives in
both branches of the National Congress stren
uously opposed the repeal of that act. The
evils under which we aro now suffering were
predicted, as a consequence of such repeal.
But other counsels prevailed, the act was re
pealed, and the industry of the country ex
posed to a ruinous competition with the cheap
labor of foreign nations. The disastrous ef
fects of the repeal, were postponed by the
operation of causes well understood by every
intelligent citizen. Famine abroad produc
ed an unprecedented demand for our bread-
Editor and Proprietor.
NO. 30.
stuffs, and the gold of California, although
it may have added to the excitement of our
progress, and contributed its full share in
producing existing financial and commercial
embarrassment, in millions, supplied the
means of paying the overwhelming balances
against us on our foreign importations. Un
der the present system of low duties, the ex
cess of imports over exports has been beyond
the most extravagant wants of the country.
They have been enormous and ruinous—de
structive of domestic industry, and involving
the home manufacturer and home labor, in
one common ruin. We have imported more
than we could pay for, and much more than
we needed. Pennsylvania abounds in iron
ore. Iron and its manufactures are justly
regarded as important elements of her mate
rial wealth ; and from her abundance, if pro
perly fostered and protected by a wise na
tional policy, could supply the markets of
the world ; and yet; since the passage of the
act of 1846, we have imported of iron and
steel and their manufactures, more than two
hundred millions of dollars in value ; paid
for in gold or our fonds and stocks, now held
by foreign capitalists—the interest on which
but adds to the burdens imposed upon us by
our foreign indebtedness. The same is true
of many other important branches of home
industry. Many millions in value of cotton
and woolen goods have, during the same pe
riod,. been imported, that should have been
made in our own workshops, should have
been:Woven on American, and not on British,
French or German looms.
As an example of the practical working of
the ;system; official documents exhibit the
fact, that during the past four years the im
ports of foreign merchandise, exceeded our
exports one hundred and eighty-four millions
two thousand seven hundred and sixty-eight
dollars; and as a consequence, the drain of
the precious metals was correspondingly
great. The amount of specie sent out of the
country during that. period, was two hun
dred and thirteen millions three hundred and
sixty-four thottsand three hundred and eigh
ty-four dollars- - - - --specie imported twenty-six
millions nine hundred and twenty-seven
thousand four hundred and twenty-seven
dollars ; leaving a balance against us on spe
cie account of one hundred and eighty-six
millions four hundred and thirty-six thou
sand nine hundred and fifty-seven dollars.—
This depleting process, aggravated by exces
sive importations, unsettled the currency and
induced an inflated paper circulation, result
ing in bank suspensions and financial embar
rassment. But the evil does not end here.—
An inflated paper currency, by cheapening
the price of money; increases in this country
the cost of production, and thus, whilst the
American Manufacturer is exposed, under a
system of low duties, to a ruinous competi
tion with the cheap labor of Europe, ho is
paid for his goods, in a currency less valua
ble than that paid to his foreign competitor.
As a necessary result the home fabric is dri
ven from the market, and the home manu
facturer ruined. The operation of these
causes, stimulated by low duties, is sufficient
to the industrial energies of any peo
pie:
With these facts before us, it is no matter
of surprise that our mills, factories and fur
naces have been closed, and thousands of ho
nest laborers thrown out of employment;
that commerce has scarcely an existence,
that bankruptcy and ruin are around us, and
our general prosperity paralyr ed. To avoid
these disasters, to which we have been perio
dically exposed, reform not only in our sys
iemes, be
come indispensable.
If the principle of the act of 1852 had been
preserved—even if its rate of duties had been
reduced, our spbeib by millions would not
have gone into foreign coffers to build up and
sustain the foreign manufacturer- '
home' in
dustry would be prosperous, and the cry "we
Want work," issuing from a thousand lips,
in our large cities and manufacturing dis
tricts, would not now be heard ; nor would
a foreign debt of nearly five hundred millions
of dollars exist to startle and alarm us.—
That system that practically prefers ronEme
to 1:1011E labor,—that keeps our workshops in
Europe, instead of building and supporting
them here—that takes our gold to_ pay the
wages of the British laborer, whilst our own
are without employment and without bread,
—that fills the country with foreign merchan
dise to the exclusion of the home fabric—that
lays the British rail upon the road through
our iron districts and by our rolling mills,
whilst they are silent and deserted, and that
invites to speculation and extravagance, is at
war -with every true American interest and
should be at once abandoned.
A period of low duties has always been
marked by excessive importations—large ex
ports of specie —overtrading—bank expan
sions and suspensions, and financial and com
mercial revulsions. Under the protective
policy these peculiar and startling character
istics of free trade have all been wanting.—
The history of the country establishes these
facts: A well regulated tariff, adjusted to
protect the productive industry of the coun
try, is not only the true policy of the Govern
ment, but is a better regulator of the curren
cy; and a more certain security against bank
expansions, than any system of plans and
penalties yet devised for the control of bank
pig institutions, or the operations of capital.
To this we should return. Pennsylvania is
Yet true to her ancient and long cherished
convictions of its propriety and necessity.—
She may have been misled. Political and
partizan pressure nifty have forced her from
her true position. This was her misfortune,
not her fault. She sees and feels the wrong,
and with. an emphasis, intensified by her in
juries, will demand redress; protection for
herself and the great industrial interests of
her people.
The agricultural interests of the country
should ever be fostered and sustained by the
State. They are first in necessity and useful.
ness, and constitute the basis of State and
National prosperity. Upon their progress
and development depend the success of our
mechanical, manufacturing and commercial
interests.
Agriculture, in its varied and multiplied
relations, is the unfailing source of National
wealth, and to its promotion all should con
tribute. Individual enterprise and liberality,
State and County associations, have done
much to advance this important branch of
productive industry ; have collected and cir
culated much valuable information; and en
couraged by their honorable exertions, the
progress of scientific and practical agricul
ture. Science and art have nobly proffered
their aid—the State should not withhold her
encouragement and support.-
I have heretofore recommended the estab
lishment of an Agricultural Bureau, in con
nection with some one of the State Depart
ments, to give efficiency to the collection and
diffusion of useful knowledge on this Object.
Impressed with the necessity and ukefolness
of such a Bureau, I again earnestbrrecom
mend it to your favorable consideration.
" The Farmers' High School of, Inns
an institution incorporated'by the Leg-