LEVVISTUWN GAZETTE I FIRST ANNUAL MESSAGL , OF ANDREW G. CURTSN, Governor of Pennsylvania, To Both Houses of the Legislature. BEAD, JANUARY 8, 1861, 'lb the honorable the Senate and Home of h'epresen tant.es of the Commonwealth of Pennsylvania, GENTLEMEN It lias pleased Divine Providence, during the last season, to give us abundant crops, unbroken peace within our borders, unanimity among our people, und thus to enable this Commonwealth to do her full duty to the country, to herself, and to posterity. For these blessings we have cause to be grateful. The balance in the , Treaeurv on the 80th Nov., 1860, was $851,488.08 The receipts during the fiscal year end ing Nov, 80, 1861, were as follow : From ord'y sources, 8,017,646.57 From tern porary 1< an uDder Act of Apr 12, 1861, at 6 per cent interest, and negotiated at par 476,000 From 6 per cent, loan under Act May 15,1861, also negotiated nt par , 2,612,150 From Bocie y of Ciu ciunatus 600 From United States on ac't military expenses 0u9,000 From Pay M -sters and others, relund ed 82,229.45 Total into Treasury for fiscal year end ing Nov. 30, 1861 7,424,958,10 And the payments as follows : For ord'ry purposes 53,144,480.34 For military expen ses, Under Acts April 12, 1861. and May, 15 and 16, 1861. 474 878 85 1,708,462 170,535 51 For Ain't loan under Act April 12,1831, repaid 375.000 6.878,352.88 Leaving balanoe in Treasury, Nov. 80, 1861 51,551.805 72 j VCBUO DEBT, FUNDED ASK UNFUNDED Received from tem porarvloan, under Act Apr. 12. 1861 475 000 Repaid os above .. 375,000 Outstanding Nov. 30, 1861 100.000 Rec'd from loan uu der Act May 15, 1861 2.012,160 Am't of public debt, funded and un funded. Nov 80, 1860 ..87,969,847.60 Paid during fiscal year 101,881.42 87,863.518.08 Remaining unpaid, (exclusive of mili tary loans alwve mentioned,) Nov. 30. 1861 87,868,616 08 . . atWUBTa AND EXTENDI ITB EI of liXi.IfART EOA^S. Receipts from raill tarv loan und r Act Apr. 12, 1861 476.000 " May 15 2.012,150 From Pay Masters and others refund ed,.. .. 82,229 45 Paid for military ex penses, as ab ve, 2,353,872 04 Paid fui redeeming loan, Act Apr. 12, 875,000 Unexpended of mili- tary loans ... $ 890,507,41 RECEIPTS AND EXPENDITURES OF ORDINARY REVt- Kl'K. Balance in Treasury, from ord' ly sources, Nov. 30, 1830 631.433 05 Bece'd from ord ary sources during fis cal year 3.017,64 > 57 3,699,078.65 Paid for ordinary expenses, as above 3,114,480.84 Unexpended of or- dinary revenue 654,698.81 Rec'd from United States Gov. onac t military expend 606,000 Rec'd from Society of Cincinuatus 50i) Balance in Treasury, above 1,561,805.72 It will be observed that the fiscal year ends on the 30th of November, and the sinking fund year on the tirst Monday in September, which accounts for the apparent deficiency in the amount of debt paid as stated in the Treas urer's report, and !>y the Commissioners of the Sinking Fund. The State has on hand a sur plus of uniforms and equipments which cost about SI9O,'JOO, which the United States have agreed to take and pay for at cost. Arrangements have been made with the general government for the reimbursement of the military expenses of the Stat since the 27th of July last. The bills as paid are forward- d to Washington and partial repayments have already been made. It will be observed that the receipts from or dinary sources of 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 December, and more may reasonably be expected in addition to the payments to be made by the National Gov ernment as hereinafter sated the balance avail able in the treasury will be largely increase I. It will also bo observed that it has not yet been found necessary to cull in ail ~f the lorn < effected under the act of the 18th of May last ' In some items the ordinary revenue of 1861 ' was in excess of that of iB6O. The loan authorised by the aot of May 16th. j 1861, was taken at par. Tnis occurrence, most I gratiij ing under all the then existing circum stances of embarrassment, affords triumphant evidence of the confident*; of the people in the stability and integrity ol the Commonwealth and of their determination to support the Gov ernment. The operations of the Sinking Fund during the last year have been as shown by my Procla mation of sth September last, as follow : Debt redeemed from 4th Septem ber, 1860, to lat Sept 1861 SBOO,BOI 01 Of stock loans $800,050 00 " interest on certifi cates 3,830 01 " relief notes 421 00 I refer to the reports of the State Treasurer and Auditor General for the details of the fi nancial affairs of the Commonwealth. The re ports of the Surveyor General and State Libra rian will exhibit tne state of the Dej artinents under their care. The Commissioners of the Sinking Fund dur ing the last spring received irom tiie Philadel delphia and Erie (late Sunbury and Erie) Rail road Company forty bonds of that Company for SIOO,OOO each, aud a mortgage to secure the same executed in conformity with the third section of the act of March the 7th, 1861. That company has also deposited in the State Treas ury its bonds to the amount of live millions of dollars, in accordance with the Oth section of the same act On the 9th of May last 1 granted my warrant authorizing the State Treasurer to deliver to the said company one thousand of said ixinds, being to the amount of one million of dollars. This warrant was issued in conform ity with the law, the five per cent bonds men tioned in the fifth section of the act (except those belonging to the State aud now in the Sinking Fund) having been previously surren dered and cancelled, and satisfaction entered on the Record of the Mortgage men tioned in said fifth section. Having re ceived notice from the company that tfc e bonds 90 delivered to the company or their proceeds had been appropriated in accordance with the provisions of the law, on the 21st of June last I appointed John A. Wright as Com missioner to examine and to report to me whe ther said bonds or their proceeds had been ap propriated to the purposes required by the act. His report has not yet been received by me. It is understood that arrangements have at last been made under which the direct railroad connection between Philadelphia and Erie will be completed within a short time It is impos sible to estimate too highly the importance of this great work to the Commonwealth, and espe cially to Philadelphia and Erie and the hither to neglected counties uear its route west of the Susquehanna. By the act of the 21st April, 1858, for the Bale of the State canals to the Sunbury ami Erie railroad company it was provided that if that company should sell said cauals for a greater mm in the aggregate than three and a half millions of dollars, seventy five per centum of such excess should be paid to the Common wealth by a transfer of so much of such bonds and securities as said company should receive for the same and payable in like manner. The company sold the canals and reported that the share of the profit on such sale, due to the Commonwealth was $281,250 of which $250 was paid in cash and for the remainiug $281,000 the Commonwealth received coupon bonds of the Wyoming canal company to that amount, being a portion of bonds for $900,000 issued by that company and secured by a mort gage of the Wyoming canal, formerly called the Lower North Branch canal. These bonds bear an interest of six per cent, per annum, payable semi-annually on the 15th of January and July, and the interest was paid by the company to January last Inclusive. The iuterest due in July last has not been paid. Judgments hav ing been obtained against the company onsome of the coupons for the uupaid July interest, a bill in equity was filed In the supreme court by a bond and stock holier in which such proceed ings were had that by a decree made on the 2d September last the property and affairs of the company were placed in the hands of a recei ver. A plan has been suggested for the assent of the stock and bond holders which contemplates a sale of the canal under lawful process and a purchase of the same for the purpose of forming a new company, of which the capital stock shall be oue million of dollars, divided into twenty thousand shares of fifty dollars each, of which each assenting holder of a mortgage bond for one thousand dollars shall be entitled to eighteen shares, and each assenting holder of fifty shares of stock of the Wyoming canal com pany shall be entitled to nine shares. Of course no officer of the Commonwealth had authority to assent to the proposal or in any way to affect her position. It is believed also that the plan is not one that ought to be ass nted to by the Commonwealth, and that under all the circumstances, if the convenience of individual parties requires a change such as proposed, toe debt due to the Commonwealth ought to be first paid or fully secured. I suggest that the Act passed Bth of April, 1861, entitled, "An Act concerning the sale of railroads, canals, &c.," should be modified so that in all cases in which a debt may he due to the Commonwealth by the company as whose property a public work may be sold, the pur chasers thereof shall not be emitted to the bene fits and privileges conferred by the Act unless they shall have first paid the debt due to the State, or secured the same by their bonds to the Commonwealth secured by a first mortgage on the work itself. I commend the subject to the immediate consideration of the Legislature, as an effort may btf made at an early day to enforce a sale of the canal, and some provision by law to pro tect the interests of the State would in that case Le necessary The wicked and monstrous rebellion which broke out many months ago, has not yet been quelled. Every sentiment of loyalty and pa triotism demands its effectual suppression. In my messages of the 9th and 30th of April last, I set fo tli at length my views of tbo char acter and objects of the contest which is still pending. Subsequent reflection has continued me in the correctness of the opinions then ex pressed and to which I refer. In addition it ought to be understood, that looking to the va riety and character of her products and indus try, her material interest alone would render the preservation of the Union from the pres ent assault upon it, indispensable to Pennsylva nia She cannot afford to have a foreign pow er below or above or bounding her on the Dela ware, the Cnesapeake or the Mississippi, and she wiil never acquiesce in such a result, what ever may be the cost in men and money of her resistance to it. On the 9th of April last I directed the atten tion of the Legiblature to the necessity which existed for an improved military organization, and on the 12th of the same month the Act entitled ' 'An Act for the better organization of the militia of this Commonwualth" passed, ap propiiatiug the sum of $500,000 for the purpose of organizing, equipping and arming the mili tia On the 15th of April the President, by proclamation, called for a military force of 75,- 000 men, of which the quota assigned to Penil sylvania was at first sixteen (afterwards reduced to fourteen) regiments to serve as infautry or riflemen for the term of thr.e months unless sooner discharged. This call was euthusiasti cally responded to by the people of Pennsylva nia The first military aid from the loyal States, which the Government received at Washington, was a Pennsylvania corps which arrived there prior to the 19ih of April. On that day the passage of other corps trom this and other States through Baltimore w*as imped ed by force and during nearly two weeks after wards the communication between Washington ".ud the loyal States was almost entirely cut oil. On the 19th 1 received a request from the War Department that the troops preparing. iu this State should be clotued, armed, equip ped, subsisted and transported by the State iu consequence of the then inability of the lini ed States Tnis request was of course complied with, and twenty-live regiments, (being eleven regiments beyond our quota,) comprising 20,175 men from Pennsylvania served for the term of three mouths under the President's proclama tion above referred to. As the furnishing those volunteers with supplies was necessarily uuder the circumstances a hurried operation, ami as complaints were made iu regard to them, and frauds were alleged to have been perpetrated, 1 appointed a board of commissioners to investi gate the whole subject. A copy ot their report with the evidence taken by them has been al ready laid before the public It is the intention of the Auditor General to open the accounts of such parties as appear by the testimony 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 ilarrisburg without notice and de tained here, waitiug to be paid, for an average time of some ten days, lilt ir tents, cauip equip age and cooking utensils had been taken troui them at Wiliiatnsport, Md. ,and they arrived here destitute of all means of shelter and of preparing their food. The Commissary of the Uiriied ►States furnished uncooked rations, and under the circumstances of emergency I deemed it tie cessary to make arrangements for aiding in the cooking and biking of the rations, and also for furnishing meals to such of the regiments as arrived during the night or under circum stances requiring instant relief. The expenses attending thee operations amounted so far as ascertained to $744 20, and I recommend that the Legislature make an appropriation to pay them. It ought to be stated that these expenses would have been much larger, but for the lib eral and patriotic efforts of the citizens and espe cially the ladies of Harrishurg ; their free-kand i d hospitality and generous aid to our wearied and hungry soldiers, deserve remembrance and gratitude. At the special session of the Legislature which commenced on the 30th of April last, I recom mended the organization of a reserve corps, to be armed, equipped, clothed, subsisted and paid by the State, and drilled in camps of instruct ion, 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 loan of $3 000,000 was authorized to defray the expenses ot that and other militury preparations. Aleu more than sufficient in numher to form some ten regiments of the Reserve Corps had, previous to the 15th of May been accepted by ine in pursuance of a call on me (afterwards re scinded,) for twenty-five reg.inents, aud were then already assembled aud subject to my con trol. Most of these men volunteered tor rhe Reserve Corps and were immediately organized. The remaining regiments were rapidly recruited and the Corps was thus completed, aud George A. MeCall. of Chester county, was commissioned as Major-General, and assigned to the command of all the forces raised or to be raised uuder the provisions of the last mentioued act. The regi ments composing the Reserve Corps were in stiuoted in four camps in different parts of the State, until they were taken into the service of the United States. Two of these regiineuts, under the commands of Colonels Charles J. Bid die aud Seneca G. Simmons, and two compa nies of artillery under the command of Col. Charles T. Campbell at the pressing in stance of the War Department were sent on the 22d of June last to the reliet of Col. Wallace, at Cumberland, and remained for about six weeks there, and in Western Virginia engaged in act ive operations. Towards the close of July the whole Corps was called for under requisition, and taken into the service of the United States. Within four days after the disaster at Bull's Ruu, eleven regiments of this fine body of men (armed, drilled, clothed, equipped, aud in all respects ready for active service.) were in Washington. The regiments and companies from Western Virginia and the remaining two regiments making the whole number of fifteen, soon joined them there, and they tiro all tow in service under the command of Gen. McCall, who has been commissioned as a Brigadier General by the United States. These fifteen regiments contain fifteen thou sand eight hundred aud fifty-six men, and con stitute a division cemprisiug three brigades, a regiment of Artillery aud one of Cavalry. The whole expense of raising, clothing, equipping, subsisting and paying the Reserve Corps (including the expense of establishing and tit tiug the camps of instruction, of recruiting, and supplying regimental flags, aud the expenses of the campaign of the two regiments aud compa nies in Maryland and Western Virginia, which were all defrayed by the State) has amounted to $855,444 87. This does not include the trans position on R iil Roads, as the separation of that account would have been a work of great labor, nor does it include the pay of the two re giments duriug the campaign, but it do;B include all the expenses, which were heavy, ofteamsand transportation, not on Railroads, for the two Regiments on the campaign above mentioned. Twelve regiments of the Reserve Corps were paid, subsisted, Sic., by the State to the average date of 22, July. The two regiments in Wes tern Virginia were paid by the State to the date of their departure from Harrisburg on that expedition. The Cavalry regiment was not paid by the State. It will be perceived that the whole average expense per man was $53.95. Previous to the 31st of April last, a regiment had been enlisted in the cUy of Erie from North western Pennsylvania. When the call was made on me on that day, for 25 additional re giments,the Erie regiment was ordered to march to Harrisburg. 'lhe call was rescinded, how ever, before the regiment reached Pittsburg, and I ordered it to encamp at that city where it remained until the 30th of Juue. The Na tional Government declined to muster the regi ment into service—as all existing requisions made on the State were mure 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 arise. After the passage of the Act of 15th May, 1861, it was expected that the regiment would form part of the Reserve Volunteer Corps; but as the men had been a long time from home and remained inactive in camp, they declined entering the service, and were subsisted and paid up to the 30th of June by the State. Two regiments have since been enlisted from the same part of Pennsylvania at the city of E ie, one ot which has been at Washington in service since September, and the other is now ready for inarching orders—and it is due to the first Erie regiment to say that most of the men are now in service. Further requisitions for sixteen regiments of Infantry and two regiments of Cavalry were shortly afterwards made by the War Depart ment. Of these, sixteen have already been raised and are in the service of the United St.tes, and the remaining two are in the course of organization and nearly ready to march. In addition to the requisitions on the State, the War Department had given au thorities to numerous individuals to raise volunteers in Pennsylvania, hut as that system was found to create much embarrass ment, a general order was issued by the War Department on the 2oth of September last plac ing all such organizations under the control of the Governor, and shortly afterwards a requisi tion was made on the State to increase her quota to 75,000 men. Those independent or ganizations, as they were called, thus became Pennsylvania regiments and as completed aud sent forward form part of the quota of the State. The State regiments have been numbered, and the last to this date is numbered 115. Two of the throe months regiments Lave continued in service under the later requisitions, and re tain their original numbers. Deducting the remaining twenty-three three months regiments, there are ninety-two regiments in service and preparing for it. We have also in service and preparing twenty-four companies The following table of the existing Pennsyl vania volunteer force is given for iu forma tion: REGIME -IS IN <-KUViCK b6 regiments of infantry of which 6 were ritle regimeuts 71,189 11 leg intents of cavalry 12]690 1 regiment of artillery L 077 84.956 Companies in service. 7 companies of infantry, "07 6 " '• cavalry 578 0 " " artillery,. 936 2,221 37,177 Enlistments in other than Pennsylva ma organizations, estimated, (the officers of which are iu course of be ing commissioned,) 6 4QQ Total iu service, .. 93 577 regiments preparing to a stßvioe. 12 regimeuts ot infantry 18 092 1 " "cavalry, 1,186 1 " " artillery 1,077 15,305 COMPANIES PREPARING IOK SERVICE -1 company of cavalry, 109 * 4 companies ot artillery, 624 738 16 038 In servioe, 98,677 Preparing for service, 16,088 Pennsylvania's contribution, 1u9,615 Exclusive of 20,175 three mouths men now dis banded. The regiments preparing for service are in complete. Those that may not bo filled oy the Itiih instant will be consolidated and sent for ward. Of the regiments in service, the llth and lotu legiuieuts of Infantry are at Au uapolis; the 28th, 29th, 2ist, 66th, 69ih, 71st, 72ud and 106 th regiments and one compa ny of Infantry are in the command of Major General Banks ; the 45th, 60tn, 55th, 76th and 100 th regiments of Infantry are in South Caro lina ; the 48th Infantry are at Hatteras Inlet; the 108 th Infantry aud llth Cavalry are at Fortress Monroe ; the 77ih, 78th and 79th In fantry, the 7th and 9th cavalry, one troop of horse, one squadron of cavalry, two battali ins of artillery are in Kentucky; the 84lhaud 110 th Infantry are in Western Virgiuia, as are also three companies of Infantry, lour companies of cavalry, five companies of iigtit artillery ; the 87th infantry are at Cockeysville, in Maryland; one compauy of artillery is at Fort Delaware ; all the remainder of the volunteers are at or near Washington. Upwards of 300 volunteers from Pennsylvania are now prisoners, but a arraugements have been made for the exchange of piisoners it may be expected that they will soou be released. In compliance with the joint resolutions of the 16th of May last, 1 have procured regimen tal flags for the Pennsylvania volunteers, ami have presented them in person to most of the regiments. In other cases, the regiments being on or near the Potomac, 1 have requested Mr. Cowau, Senator, and Messrs. Grow and Wright members of the House of Representatives, from Pennsylvania, to present them in the name of the Commonwealth. The General Government requested that the States would abstaiu from purchasing arms, as their competition was found injurious in the market, aud in view of the largo expenditures of mone> inarming aud equippiug the volunteer torce of the State, provided lor the defence of the National Government, I did not purchase any as authorized by the 28th section ol" the act of the 15th of May, 1861. The State has now quite as mauy arms as are necessary to arm all her volunteer organizations in existence; but, influenced by the threatening aspect of our rela tions with foreign governments, 1 have directed the Adjutant General to procure arms as soon as it tan be done on reasonable terms aud withtut injurious competition with the National Gov erment Anus have been distributed among the border counties to all the organizations that have been formed to receive them. 1930 arms have been thus distributed. I have also ad dressed a letter to the commissioners of all the border counties, offering arms to them as soon as military organizations shall be formed to receive them. Besides thus complying with the requirements of the 27th section of the Act of 15th May last, I have deemed it prudent to offer five thousand arms to such military organ izations as may be formed iu Philadelphia on a plan to lie approved by me as Commander-in- Chief. Muskets and rifles teen for vari ous, generally short periods at Camp Curtin since the 19th of April last, and that down to the Ist January inst. there died but forty-nine men at that camp, nz . forty-four form sick ness, imo (belonging to regiments from other 8 tales.) who had been injured on railroads, two accidentally killed in Camp Curtin and one suot iu Harrishurg. lo facilitate the making ot allotments of their pay. by our volunteers iu the tield for the support of their families at home, I ap)>ointed Don Edgar Cowan, Thomas E. Franklin aud E. C. Humes, Esqs , commisssioners to visit the camps of our men on aud south of the Potomac, and also James Park ..ud M W. lieltakeover, Esqs., commissioners to visit those iu Kentucky aud elsewhere iu the western country, to cali the attention of the troops to the system of al lotment and to encoursge them in adopting a practical plan for carrying it into effect. f he seveial reports of these commissioners are highly satisfactory. lor details on lire several subjects connected with the military operations of this State, I re fer to the reports of the Adjutant General, Sur geon General, Quarter .ouster General, Commis sary Geneial aud Paymaster General which ac company this Message. lire duties imposed on me were so ouerous that 1 found it necessary to invite the temporary assistance ot gentlemen on my stall to aid mo to perform them. Iu this capacity, Cols. Thomas A. Scott, Gid eon J. Dall and John A W right contributed their valuable services from the middle of April until they were called away by other du ties. Col. Scott remaining until he became con nected with the War Department, Col Bail until the Ist of June and Col. Wright until the 28d of July ; for the time thus devoted to the service of the State they have refused to re ceive any compensation. Cols Joseph D. Potts, A. L. Russell, J Brown Parker and Craig Biddle were iu service up to the 20th of December. The Department of Telegiaph and Transportation was under the exclusive control of 0.-l. Potts. The system aud economy ot its management show how faithfully aud weii he fulffiled his office. It is but just to all these gentlemen that I should bear testimony to the untiring zeal and fidelity with which their duties were per formed. The quota of the State having been more than filled, ami her military force organized, I was enabled on the twentieth of December last, to disp nse with a personal staff, and the temporary arrangement which had been made for its employment was theu clo. ed. By the 13th section of the Act of the 15th of May, 1861, I was authorised to draw my war rants on the Treasury for a sum not exceeding S2O 000 for compensation to such persons as might be required to serve the country in a military capacity, &c. Of this fund I have drawn from the Treasury $8,500, out of which I paid the compensation ot my personal staff, also other expenses of the military department, and the actual expeuses of persons employed on temporary service, none of whom received any further compensation, and expenses of the commissions appoiuted to investigate alleged frauds, &c., and the expenses of establishing military patrols on the Maryland line and five hundred dollars on secret service. Aly account is settled in the office of the Auditor General up to the Ist of December. On that day I had expended $6,400, and except some incon siderable payments made since, the balance remains in my hands. The report of the Audit -r General will exhi bit the items of the account. An account of military expenditures by the State on behalf of the United States, as far as the same had then been ascertained and settled by the accounting depai tments here, was made up to the Ist day of September, 1861, and pre sented on the 12th of that month at the Trea ury Department of the United States for settle ment and allowance. The sum of $606,000, has been received from the Treasury Department on (hat account. The repayment by the General Governmentof the expenses attending theorgau ization aud support of the Reserve Corps, may not be provided for by any existing act of Con gress. As these expenses were incurred by the State for the benefit of the General Government, and have been productive of results most im portant to the welfare and even safety of the country, It would be right that an act ot Con gress should be passed providing expressly tor their repayment. It lies with the Legislature to adopt the proper means for directing the attention of Congress to this subject. Assurances have beeu received from the Treasury Department that the examination of the military accounts of the State will be pro ceeded in w thout delay, so that the State may receive a credit for the balance due. in time to apply the same towards the payment of her quota of the direct tax. Assuming the com pletion of this arraugement, if the State shall assume the direct tax for this year, a saving of fiiteeu per cent will accrue to her, aud no present in crease of her taxation will be necessary. Whether this credit be given or not, I re commend that the payment of the direct tax be assumed by the State. In case the State assumes the payment of this tax there should be such revision of the tax laws as will hereafter equitably apportion the burden among the various interests now subject or that can properly be made subject to taxation. The saving of fifteen per cent, to the people of the State by the assumption is a mat ter worthy of thought, but a more impot iant consideration is that it will enable you who re present all the varied interests of the Common wealth to apportion the tax in such manner as to bear equally upon all. Our revenue laws hud imposed on real and personal property as its full proportion but little moie than one third of the taxes needed for the ordinary ex penditures of the government. By the act of 15th May last, the tax on this species of property has already been increased one-sixth. Should the State refuse to assume the United States tax the whole burden of it will fall upon these in terests, interests too, most, unfavorably affected by the war, whilst other kinds of property aud other sources of revenue, judged by our laws able to pay nearly two thirds of the present revenues of the State, would not bee tiled on to contribute one dollar of additional tax. • The militia system of the Common wealth is very imperfect I recommend the establish ment of a commission to frame and report a system more adequate to the exigency of the times. I earnestly recommend to the legislature that provision be made for the military instruction of youth. The appointment of a military in structor in the normal schools, would iu a short period give teachers to the common schools who would be competent to train the boys in attendance oh them. It would in my opinion be wise also to provide for the purchase or leasing by the Commonwealth of a building for a military school, and for employing competent instructors at the expense of the State,requiri: g the pupils to defray the other expens s. No pupil should be admitted to this school without having passed a thorough examination on mathematics and all fitting subjects of instruc tion txcept the military art proper. I respect fully urge this subject on your early considera tion, as one of material perhaps vital import ance. I have taken measures to direct the efficient attention of the General Government to the fortification of the water approaches on the 6ea b >ard and the 1 tkes, and arrangements are in the course of being effected which it is hoped will be satisfactory in their result. I send with this message a copy of a com munication from General Totteo, chief of the Military Engineer Department at Washington. I have also represented to the Secretaiy of the Navy the nece4#ty for fl ating defence* 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 of the defenceless condition of that city, and the part of the State bordering on the Kite. On uxaud ■A.K it is found that there are no defences on the lake, and that the ordnance at the icity of Erie was withdrawn by the National Gk>veinment in the summer of 18bl The tseeiet.iry of the Navy, on a request made, directed that the crew of the Uuited Sutes steamer Michigan should not be dis banded, as has been usual, and that vesssl will remain in the harbor of Erie during the winter should the National Government unexpectedly tail iu its duty providing adequate detences at our assailable points, East aud West, I ear nestly recommend that the Legislature take prompt means for that purpose. We should be admonished, by recent indications from abroad, to be prepared for our own defence as well as tor the suppression of domestic insur rection. Iu selecting a site for a National Armory, if the public good be alone considered, Pennsyl vania will be preferred, as she affords the com bined advantages of a central position, abun dance of material and skilled mechanics', and a people of undoubted loyalty. 1 commend to the attention of the Legisla ture the report of the Superintendent of the Public Schoo's, the flourishing state of which and the rapid progress of education are subjects of just congratulation ihe reports ot the Lunatic Hospital at Har risburg and of Western Pennsylvania, of the Houses ot Refuge at Philadelphia and Pittsburg, of the Institutions for the Deaf and Dumb and f.i the Blind >nd the Northern Home for Friend less Children at Philadelphia, and of the Penn sylvania Training School for Idiotic and Feeble Minded Children at Media, show that these meritorious charities are well administered, * and 1 recommend th.it the countenance and aid of the Commonwealth be continued to them Under the joint resolution of 16th May last, commissioners have been appointed to revise the revenue laws, whose names will be forthwith submitted for the advice aud consent of the Senate. It is hop d that the commissioners will he able to report during the present session of the Legislature. Considering the grevt labor impo-ed on them, and the vast importance at lite present time of an a'le and efficient per foimauce of the duties of the commissioners, 1 suggest that the compensation provided for by the joint resolution should be increased to an adequate amount. It was evident, long sine**, that it would bo impossible for the batiks to continue to redeem their obligations in coin, in the face of the large issues of paper, the necessity for which was imposed on them and the government by the exigencies of the times. No surprise, there fore, was felt at the supension of specie pay ments by the banks, which took place on Mon day, the 30th of December last. Under the circumstances, I recommend that they be re lieved from ail penalties for this breach of tk law. Pennsylvania has made great efforts to sup port the Government. She has given more and better clothed, and better equipped men than any other State, and has far exceeded her quota ot the military levies. The sons of our best oit izens, young men of education and meaus fill the tanks of her volunteer regiments. 'lTieir gallant conduct, wheuever an t opportunity has been afforded to them, has done honor to the Commonwealth. The universal move ment among our people, signifies that they are loyal to the Government established by their lathers, and are determined to quell the present insurrection and preserve the Union, and that they will not tolerate any plan for either the dissolution or reconstruction of it A. G. CURTIN. EXBCTUXVK CHAMBER, I Harrisburg, Jan. 8, 1861. J The South Despairing. A YKAR CLOSING UNDER GLOOMY AUSPICE* A HO OPENING WITH EVIL TIDINGS. PROM THE RIOBM >A I PX I MINER OF JANUARY 2. The year closed under gloomy auspices ; with a check at Draincsville, and a rumored disaster in Missouri. The year which yesterday began has opened with evil tidings. We fear tbat there is no doubt of the fact ihat the Northern Union has consented to the surrender of Mason and Slidell; and with that event all hope of an immediate alliance between the Southern Con federacy and Great Britain must cease. Under other circumstances we might derive a consolation for the loss by considering the in effaceable disgrace that falls on the enemy. Never, since the humiliation of the Doge and Squat.; of Genoa before the footstool of Louis XIV has any nation consented to a degradation so deep. If Lincoln and Seward intended to give them up at a menace, why, their people will ask did they ever capture the ambassadors? Why the exultant hurrah over the event that went up from the nineteen millions of throats? Why the glorification of Wilkes ? Why tha coward insults to two unarmed gentlemen, their close imprisonment and the blood-thirsty movements of Congress in their regard ? But most of all, why did the Government of Lin coln indulge a full Cabinet with an unanimous resolution that, under no circumstances, should the United States surrender Messrs. Mason and Slidell? Why did they encourage the popular sentiment to a similar position? The United States Government and people swore the great oath to stand on the ground they had taken ; the American eagle was brought out, he screeched his loudest screech of defiance—then "Dropt like a craven cock hie conquerredwiny'' at the first growl of the lion. This is the atti tude of the enemy. It would greaily console us to contemplate him, did we not know that no new exhibition of insolence and cowardice could sink him lower in the world's estimation. The United States has lost no character by an exhi bition of poltroonery as yet unknown in the di plomacy of other nations. That country has already sunken beneath the reach ot infamy. The only charge of bayonets made during the war by Lincoln's soldiers was that of the Fair fax marines on Miss Slidell; and the surrender of her father at the first menace of Great Brit ain will create rather more disgust or further disgust. Nor can we hope for a popular revulsion in the Nornern people against the folly and pusil lanimity of their rulers. People and rulers are alike. It is only in the sentiment of England that we can find a ray of encouragement. It is certain that the British wanted war ; that they were confident of getting it; and they will be bitterly disappointed at the unsatisfactory re sult, Now, this result, though apparently due to the lilly livers of tr,e Yankees, is partially attributable to the management of the Palmer ston Ministry. That Cabinet gave fcseward and Lincoln the chance of humiliation, when it could have takeu redress with the high-hand, and shut the door to apology by re calling Lyons, sending home Adams, and setting the British tleet at cnce !n full sail for the scene of action. The Palmerston Ministry is the friend ot the north, and is directly antagonistical to the majority of the British nation. On these data we venture the prophecy that in less than three months this Ministry will fall from power. Whenever it does so, we may anticipate im mediate intervention by Gr at Britain in the affairs of this continent The inclinations and interest of that people are so closely united on this one point, that we do not hesitate to de clare the result a moral necessity. But for some time we may he left alone in this quarrel. Let us not repine, though the task be heavy on the arm. If we would respect ourselves, consolidate our nationality, ensure our future independence, and transmit a heroic memory to posterity, we must prove to ourselves uni to all others that our own unaided strength is sufficient for our own redemption. If it is not, there remains one resolution by which every citizen that is worthy of freedom can avoid the sight of its extinction and the spectacle of his country's fttia—to die in the last ditch of their defence.