profit fiAzms.l FIRST ANNUAL MESSAGE , OF ANDREW G, CURTIN, Governor of nnvylvania, To Both Honses of the Legislature. BEAD, JANUARY 8, 1861. it the ht/rusrahle the Senate and Houte of ftepresen. tattvet of tii* Commonwealth of Fmmylvania. GEXTLEMEX It has pleased Divine Providence, during the j last season, to give us abundant crops, unbroken ] peace within our borders, unanimity among our people, and thus to enable this Commonwealth to do ber full duty to the country, to herself, and to posterity. For these blessings we have cause to be grateful. The balance in tbe . Treasury on the 80th Nov., 1860, was $881,433.0*8 The receipts during the fiscal yeaT end ing Nov, 80, 1861, were as follow : From ord'y sources, 8,017.646.67 From tern porary 1 an under Act of Apr. 12, 1861. at 6 per cent interest, anil negotiated at par 475,000 From 0 per cent loan utuiar Act May 15,1801, also negotiated at par.. 2,612,160 From socie v of Cin ciunatus 600 From United States on ac't military expenses Ouß,ooo From Pay M -sterg and others, r:und ed §2,229.45 Total into Treasury for fiscal year end ing Nov. 30, 1861 7,424,958.10 And the payments as follows : For otd'ry purposes 53,144,480.54 For military expen ses, Under Acts April 12, 1861. and May, 16 and 18, 1881. 44 8(3 85 1,708 402 08 170,535 51 — 2,863,872 04 For Ain't loan under Act April 12, 1851, repaid 375,000 6.878,352.88 Leaving baianoe in Treasury, Nov. 80, 1861 51.551.605 72 PCELIC- DEBT, tC.NDKD AKD CSPCXDED. Received from tern porarvloan, under Act Apr. 12. 1661 476 000 Repaid as above.. 375,000 Outstanding Nov. 30, 1861 100.000 Rec'd from loan uu der Act May 15, 1861 2.812,160 iult of public debt, fundel and uu funded. Nov 80, 1860 87,969,847.60 Faid during fiscal year 101,881.42 37,863,518.08 Remaining unpaid, (exclusive of mili tary loans above mentioned,) Nov. 30, 1861 37.808.618 08 BSCUPTS AND EXP EN Dir cats or HILirART LOAVg, Receipts from mili tary loan und r Act Apr. 12, 1861 476 000 " May 15 2.612,160 From Pay Masters and others refund ed 32,229 46 Paid for military ex penses, as ab 'V, 2,363,872 04 Paid tor redeeming loan. Act Apr. 12, 875,000 Unexpended of mili- tary loans $ 390,607 41 RECEIPTS AND EXPENDITURES OF ORDINARY RE VE NUE. Balance in I leasury, from ord' i y sources, Nov. 30. 1860 681,433.0S fiece'd from ord ary sources during fis cal yaar. 3,017,645.57 3,699.078.65 Paid for ordinary expenses, as above 3,144,480 31 Unexpended of or- dinary revenue 554,698.31 Bec'd from United States Gov on ac t military expend 606,000 Bec'd from Society of Cincinoatus jqq Balance in Treasury, a* above 81,561,605.72 It will be observed that the fiscal year ends on the 30th of November, and the sinking fund year on the first Monday in September, which accounts for the apparent deficiency in the amount of debt paid as stated in the Treas urer's report, and by the Commissioners of the Sinking Fund. The State has on hand a sur plus of uniforms and equipments which cost about $190,000, which the United States have agreed to t ike and pay for at cost. Amusements have been made with the general government for the reimbursement of the military expenses of the Stat -siuce the 27th of July l ist. 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 1801 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 jiayments to be made by the National Gov ernment as hereinafter! sated the balance avail able in the treasury will be largely increased. It will also be observed that it has not yet been found necessary to cali in ail of the lotn effected under the act of the 18th of May last In some item-the ordinary revenue of 1801 was in excess of that of 18(50 The loan authorised by the aot of May 16th. ISGI, was taken at par. This occurrence, most gratii} ing under all tbe then existing circum stances ot embarrassment, affords triumphant evidence of the confidence of the people in the stability and integrity of 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 oth September last, as follow : Debt redeemed from 4th Septem ber, 1860, to Ist Sept 1861 $300,801 01 Of stock loans $300,050 00 " interest on certifi cates 3,830 01 " relief notes 421 00 1 refci 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 aud State Libra rian will exhibit tue state of the Bet artments under their care. The Commissioners of the Sinking Fund dur ing the last spring received trom tiie Philadel delpbia and Erie (late Sunbury and Erie) Rail road Company forty bonds of that Company for SIOO,OOO each, and 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 five millions of dollars, in accordance with the 6th section of the same act On the 9th of May lastl granted my warrant authorizing the State Treasurer to deliver to the said company one thousand of said lx>nds, being to the amount of one million of dollars. 1 his 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 tbe bonds so delivered to the company or their proceeds had been appropiiated in accordai.ce 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 who t her said bonds or tbeir 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 ami 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, andespe j eially to Philadelphia and Erie and the hither to neglected counties near its route west of the Susquehanna. By the act of the 21st April, 1858, for the sale of the State canals to the Sunbury and Erie ; railroad company it was provided that if that i company should sell said canals for a greater smn in the aggregate than three and a half j millions of dollars, seventy-five per centum of i 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 re l >orted i that the share of the profit on such sale, due to the Commonwealth was $281,250 of which j 8-I''o was paid in cash and for the remaining 8281,000 the Commonwealth received coupon bonds of the Wyoming canal company to that amount, being a portion of bonds for $900,000 issued by tbat 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 loth of January and July, I and the interest was paid by the company to 1 January last inclusive. The interest due in July last has not been paid. Judgments hav i ing been obtained against the company onsome | of the coupons for the unpaid July interest, a bill in equity was filed in the supreme court by a bond and stock hoi ler in which such proceed ings were had that by a decree marie on the 2d September last the property and affairs of the 1 company were placed in the hands of a recei f ver. A plan liar 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 boud for one thousand dollars shall be entitled to eighteen shares, and each assenting holder oi 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 iu any way to affect her position. It is believed also that the plan is not one that ought to l>e 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 Apiil, 1861, entitled, "An Act concerning the sale of railroads, canals, &c.," should be modified so that iu all cases iu which a debt may be due to the Commonwealth by the company as whose property a public work may be sold, the pur chasers thereof shall not be entitled to the t tie fits and privileges conferred by the Act unless they shall have first paid the debt due to the. State, or secured the saute 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 be made at an early day to enforce a sale of the canal, aud some provision by law to pro tect the interests of the State would in that case he 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. Iu my messages of the 9th and 30th of April last. I set fo tir at length rny views of the char acter and objects of the contest which is still pendiug. Subsequent reflection has confirmed 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 iuterest 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 hounding her on the Dela ware, the Cnesapeake or the Mississippi, and she will never acquiesce in such a result, what ever may be the cost in men and money of her resistance to it. Oa the 9ib of April last I directed the atten tion of the Legislature to the necessity which existe i 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 propiiating the sum of $500,000 for the purpjse of organizing, equipping and arming the iniii tia On the !sth of April the President, by proclamation, called for a military force of 75,- 000 men, of which the quota assigned to Penn sylvania was at first sixteen (afcerwards reduced to fourteen) regiments to serve as infantry or riflemen for the term of thr. e months unless sooner discharged. This call was enthusiasti 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 from this and other States through Baltimore was imped ed by force and during nearly two weeks after wards the communication between Washington and the loyal States was almost entirely cut oil. On the 19th 1 received a request from the War Department that the troops preparing in tiiia State should be clothed, armed, equip ped, subsisted aud transported by the State iu <x>n sequence of the then inability of the United States. This request was of Course complied with, and twenty-tive 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 beeu perpetrated, 1 appointed a board of commissioners to investi gate the whole subject. A copy oi tbeir report with the evidence taken by them has been al ready laid before the public It is the iuteutiou of the Auditor General to open the accoUuts 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 liarrisburg without uotice and de tained here, waiting to be paid, for an average time of some ten days, lht ir tents, camp equip age and cooking utensils had been taken trom them at Williamsport, Md. ,and they arrived here destitute of all means of shelter and of preparing their food. The Commissary of the Uuiied States furnished uncooked rations, aud uuder the circumstances of emergency I deemed it ue cess&ry to make arrangements for aiding in the cooking and biking of the rations, aud also for furnishing meals to such of the regiments as arrived during the night or under circum stances requiring instant relief. The expenses attending these 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 tue citizens aud espe cially the ladies of Harrishurg ; their free-hand ed hospitality and generous aid to our wearied and hungry soldiers, deserve remembrance and gratitude. At the special session of the Legislature which commenced ou 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 of that and other military preparations. Men more than sufficient in numoer to form some ten regiments of the Reserve Corps had, previous to the 15th of May been accepted by me in pursuance of a call on me (afterwards re scinded,) for twenty-five reg.ments, aud were then already assembled and subject to my con trol. Most of these men volunteered tor the Reserve Corps aud were immediately organized. The remaining regiments were rapidly recruited and the Corps was thus completed, aud George A. McCall, of Chester county, was commissioned as Major-General, and assigned to the command of ail the forces raised or to be raised uuder the provisious of the last mentioned act. The regi ments composing the Reserve Corps were in stiucted in four camps iu different parts of the State, until they were taken into the service ot the United States. Two of these regiments, under the commands of Colonels Charles J. Bid die aud Seueca G. Simmons, and two compa nies of artillery uuder the command of Col. Charles T. Campbell at the pressing in stance ot the War Department were sent on the 22d of June last to the reliet of Col. Wallace, at Cumberland, aud remained for about six weeks there, and in Western Virginia engaged in act ive operations. Towards the close of July the whole Corps wis called for uuder requisition, and taken into the service of the United States. Within four days after the disaster at Bull's Run, eleven regiments of this tine body of men (armed, drilled, clothed, equipped, and 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 are all now 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 and fifty-six men, aud con stitute a division cemprisiug three brigades, a regiment of Artillery and one of Cavalry. The whole expense of raising, clothing, equipping, subsisting and paying the Reserve Corps (including the expense of establishing aud tit ting 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 dctrayed by ibe State) has amounted to 3855,444 87. This does not include the trans portation on Rdl Roads, as tne separation of that account would have been a work of great labor, nor does it include the pay of the two re giments during the campaign, but it do; 8 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, Ike., 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 city of Erie from North western Pennsylvania. When the call was made ou me on that day, for 25 additional re giments, the Erie regiment was ordered to march to Harrisburg. The call was rescinded, how ever, before the regiment reached Pittsburg, aud I ordered it to encamp at that city where it remained until the 30th of June. The Na tional Government declined to muster the regi ment into service—as all existing requisions made on the State were more than filled. Much apprehension existed in the Western and South western borders of the State, and it was deemed prudent to retain the regiment at Pittsburg to meet any emergency that might 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 aud 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 marching orders—and it is due to the first Erie regimeut to say that most of the men are now in service. I 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 States, and the remaining two are in the course of organisation 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, but as that system was found to create much embarrass ment, a general order was issued by the War Department on the 26th 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 a* completed and 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 three months regiments Lave contiuued in service under the later requisitions, ami re tain their original numbers. Deducting the remaining twenty-three three months regiments, there are ninety-two regiments in service aud 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 inform* tion: REGIMBMS IN c-KUVICK 66 regimen is of infantry of which 6 were ride reghneuts 71,189 11 legimsnts of cavalry... 12,690 1 regiment of artillery 1,077 84,956 COMPANIES IN SKRVtOH. 7 companies of infantry, 707 6 " '• cavulry 578 6 " " artillery, 936 2,221 87,177 Enlistments in other than Peunsylva uia organizations, estimated, (the officers of which are in course of be ing co mm issioned,) (j _ Total iu service, 93,577 REGIMENTS PREPARING FoR s&RViOt. 12 regiments ot infantry 18 092 1 " "cavalry, 1,186 1 " "artillery, 1,077 15,805 COMPANIES PREPARING RAN SERVICE. 1 company of cavalry, 109 * 4 companies ot aitillery 624 733 16 038 lu service, 98,577 Preparing for service, 16,038 Pennsylvania's contribution, 109,615 Exclusive of 20,175 three months men now dis banded. The regiuieuU preparing for service are in complete. Those that may not be fiiled by the 16th instant will be consolidated and sent for ward. Of the regiments iu service, the llth and 16tn regiments of Infantry are at An napolis; the 28th, 29th, 21st, 66th, 69th, 71st, 72ud and 106 th regiments and onecomp i ny of Infantry are in itie command of Major General Banks; the 45th, 60ta, 55th, 76th and 100 th regiments of Infantry are iu South Caro lina ; the 48th Infantry are at Hatteras luiet; 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 >ns of artillery are in Kentucky; the 84th aud 110 th infantry are in Western Yirgiuia, as are also three companies of infantry, lour companies ot cavalry, five companies of light ariiliery ; the 87th infantry are at Cockeysvilie, in Maryland; one company of artillery is at Fort Delaw are ; all the remainder of the volunteers are at or near Washington. Upwards of 300 volunteers from Pennsylvania are now prisoueis, but a ai raugeinenUs have been made for the exchange of prisoners it may be expected that they will soon be released. In compliance with the joint resolutions of the 16th of May last, 1 have procured regimen tal flags for the Pennsylvania volunteers, and have presented them iu person to most of the regiments. In other cases, the regiments being on or near the Potomac, 1 have requested Mr. Cowan, Senator, and Messrs. Grow and Wright members of the House of Representatives, from Pennsylvania, to present them in the uame of the Commonwealth. The General Government requested that the States would abstain from purchasing arms, as their competition was found injurious in the market, aud in view ot the large expendituies of money inarming aud equipping the volunteer lorce of the State, provided for the defence of the National Government, I did not purchase any as authorized by the 28th section of the act of the 15th 6f May, 1861. The State has now quite as many 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, I have directed (he Adjutant General to procure arms us soon as it can be done ou reasonable terms aud withiut injurious competition with the National Gov erment Arms have been distributed among the border counties to all the organizations that have been formed to receive them. 1930 arms nave 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 thrin. Besides thus complying with the requirements of the 27th section ol ihe Act of 15th May last, 1 have deemed it prudent to offer five thousand arms to such military organ izations as may be formed iu Philadelphia on a plan to l>e approved by me as Commander-in- Chief. Muskets aud rifles t<s a considerable extent have been furnished to the Pennsyl vania volunteers from the State arsenal.— Others have been sent by the United States authorities to arm them before leaviug the State. In some cases regiments have goue without arms under assurances from the War Depariment that they would be aimed at Washington or other near designated points, and that their immediate departure was requir ed. It was thought wise in these cases not to insist ou the arms being sent before the regi ments marched, as this would have imposed on the government an unnecessary expense in freight, and would have been productive of de lays which might have been seriously detrimen tal to the public service. Forty-two pieces of artillery with limbers, caissons, forges, ammuni tion wagons, harness and all the necessary im plements arid equipments were furnished by the State to the artillery regiment o the Re serve Corps. Ten of th.-se were purchased by the State, and their cost has been refunded by the United States. Diligence has been used iu col lecting arms throughout the State and rep iii ing and altering them in the most approved manner. The State has now 62 pieces of artillery, of which 17 need repairs. 26,758 muskets and rifles, someof which are in the hands of mechanics being repaired, 1910 are in the hands of volunteer corps throughout the State; 1930 in the p 6seSsion of County Commissioners, and 1,000 with the reserve corps of Philadelphia. In addition to this the city of Philadelphia has 9 pieces of rifled artillery, and 4,976 muskets and rifles. The State has also in the arsenal at Harris burg 1,966 aabn-8 and swords, and 1,957 pistols, ai d the city of Philadelphia has 440 sabres, and 326 pisto.s with the necessary accoutrements There is also in the Arsenal at Harrisburg a large amount of accoutrements and ammuni tion for artillery and small arms. The Adjutant General is successfully engaged in collecting arms throughout the State, and it is expected that the number above state.! will be largely increased. Probably, at least, 5,000 muskets and rifles and several pieces of artil lery will still be collected. The care which has been bestowed upon the comfort of the volunte-rs, and the goodness and sufficiency of their supplies of all kinds, and the excellent arrangements of the Medical Department under the control of Surgeon Gen eral Henry H. Smith, are proved by the fact that more than 60,000 men have been 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-uine men at that camp, tie , forty-four from sick ness, two (belonging to regiments from other States.) who had been injur*d on railroads, two accidentally killed in Camp Curtin and oue shot iu Harrishurg. To facilitate the making of allotments of their pay- by our volunteers iu the lield for the support of their families at home, 1 appointed Hon Edgar Cowan, Thomas E. Franklin and E 0. Humes, Esqs , commisssiouers to visit the camps of our men on and south of tiie Potomac, and also J arms Park .nd AI t\ Beltahoover, Esqs., commissioners to visit those iu Kentucky aud elsewhere iu the western country, to call the attention of the troops to the system of al lotment and to eucourege them iu adopting a practical plan for carrying it into effect. lhe sevetal rejKirts of these cotuuiissiouersare highly satisfactory tor details on the several subjects connected with the military operations of this State, I re fer to the reports of the Adjutant General, Sur geon General, Quarter ilaster General, Commis sary Geueial aud Paymaster General which ac company this Message. lhe duties imposed on me were so onerous that I found it necessary to invite the temporary assistance ot gentlemen on my staff' to tml mo to perform them lu this capacity, Cols. Thomas A. Scott, Gid eon J. Ball and John A. Wright contributed their valuable services from the middle of April until they were called away by other du ties. Col. Scott remaiuiug until he became con nected with the War Department, Col Bail until the Ist of Juue and Col. Wright untii the 23d of July ; for the time thus devoted to the service ot the State they have refused to re ceive any compensation. Cols Joseph D. lVits, A. L. Russell, J. Browu Parker aud Craig Biddle were in service up to the 20th of December. The Department of Telegiaphand Transportation was under the exclusive control of Col. Potts. The system and economy ot its management show how faithfully and well he fulfilled his office. It is but just to ail these gentlemen that 1 should bear testimony to the untiring leal and fidelity with which their duties were per formed. The quota ot the State having been more than filled, aud her military force organized, I was eiiablcd on the twentieth of December hist, to tlisp use with a personal staff, and the temporary arrangement which had been made for its employment was then clo.ed. By the 13th section of the Act of the 15th of May, 1861, I was authorised to draw my war rants on ihe Treasury for a sum not exceeding 320,000 for compensation to such persons as might be required to oerve the country in a military capacity, &c. Of this iund I have drawn from the Treasury 38,500, out of which 1 paid the compensation ot my personal staff, also other expenses of the military department, and the actual expenses of persons employed on temporary service, none of whom received any further compensation, and expenses of the commissions appointed to investigate alleged frauds, &c., and the expenses of establishing military patrols on the Maryland line and five hundred dollars on secret service. My account is settled in the office of the Auditor General up to the Ist of December. On that day I had expended 36,400, and except some incon siderable payments made since, the balance remains in my hands. The report of the Auditor General will exhi bit the items of the account. An account of military expenditures by the State on behalf of the United Suites, as far as ttie same had theu been ascertained and settled by the accounting departments here, was made up to the Ist day of September, 1861, and pre sented on the 12th of that month at the Trea sury Department of the United States for settle ment and allowance. Tiie sum of 3606,000, has been received from the Treasury Department on that account. The repayment by the General Go vernment of the expenses ai tending the organ ization and 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 been received from the Treasury Department that the examination of the military accounts of the State will be pro ceeded iu without 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 completion of this arrangement, if the State shall assume the direct tax for this year, a siving of fifteen per cent will accrue to her, and 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 cf the tax laws as will hereafter equitably apportion the burdeu among the various interests now subject or that can properly be made subject to taxatiou. 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 important consideration is that it will enable you who re present all the varied interests of the Common wealth to apportion the tax in sut h manner as to bear equally upon all. Our revenue laws had imposed on real and personal property as its full proportion but little more than one third of the taxes needed for the ordinary ex penditures of the govern oient. By the act of loth 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 and other sources of revenue, judged by our laws able to pay nearly two thirds of the present revenues of the State, would not be celled on to contribute one dollar of additional tax. * The militia system of the Commonwealth 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 tor 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 instrnctois at the expense of the State,requiring the pupils to defray the other experts s. No pupil should be admitted to this school without having passed a thorougli examination on mathematics and all fitting subjects of instruc tion except 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 sea | board and the 1 ikes, and arrangements are in the course of being effected which it is hoped will be satisfactory in their result. I 6end with this message a copy of a coiu municati'in from General Totten, chief of the Military Engineer Department at Washington. I have also represented to the Secretary of the Navy the nece4®ty for fl a ting defences 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 Kke. On exam! ft it is found that there are no defences on the lake, and that the ordnance at the city of Erie was withdrawn by the National Government in the summer of 1801. The Secretary of the Navy, on a request made, directed that the crew of the United States steamer Michigan should not be dis banded, as has been usual, and that vesssl will remain in the harbor of Erie during the winter. >hould the National Government unexpectedly fail in its duty providing adequate defences at our assailable points, East and West, I e*r ueetly 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 for tire suppression of domestic insur rection. In selecting a site for a National Armory if the public good be aione 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 '.he Superintendent of the Public Schoo's, the nourishing state of which and the rapid progress of education are subjects of just congratulation The reports of the Lunatic Hospital at Har tisburg and of Western Pennsylvania, of the Houses ot Kefi.-ge at Philadelphia and Pittsburg, of the Institutions for the Deaf and Dumb auci fa 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 aud I recommend that 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 lor the advice aud conseut of the Senate. It is hop d that the oommissionera will be able to report during the present session of the Legislature. Considering the grett labor inipo-ed on them, and ihe vast importance at the present time of an able and efficient per formance of the duties of the commissioners, I suggest that the compensation provided for by the joint resolution should be increased to an adequate amount. It was evident, long since, that it would be impossible for the banks to continue to redeem (heir obligations in coin, in tbe 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 penal ties for this breach of the 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 of the military levies. Ihe sons of our best oit izens, young men of education and means fill the tanks of her volunteer regiments. Their gallant conduct, whenever an .opportunity haa 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 tho dissolution or reconstruction of it A G. CUMIN. EXECCIJVK CHAMBER, i Harrisburg, Jan. 8, 1861. J Tho South Despairing. A TKAK CLOSING DMDKR. (JLOO2IV AUSPICES AND OPENING WITH EVIL TIDINGS. FROM THE KIEBM>UF KXI MINER OL" JANUARY 2. The year closed under gloomy auspices ; with a check at Drainesville, and a rumored disaster IU Missouri. The year which yesterday began has opened with evil tidings. We fear tUat there is no doubt of the fact that the Northern Union has consented to the surrender of Mason and Slidcll; 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 derives consolation for the loss by considering the in effaceable disgrace that falls on the enemy. Never, since the humiliation of the Dnge and Senate of Genoa before the footstool of Louis XIV has any nation consented to a degradation so deep. If Lincoln and Beward intended to give them up at a menace, why, their people will ask did they ever capture the ambassadors? Wbv the exultant hurrah over the event that went up from the nineteen millions of throats? I Why the glorification of Wilkes? Why the co war'l insults to two unarmed gentlemen, their close imprisonment and the blood-thirsty movemeuts of Congress iu 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 eueourage 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 '' Dropi like a craven cock hie conquer red wing'' at the first growl of the lion. This ig the atti tude of the enemy. It would greatly console ug 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 of infamy. The only charge of bayonets made during the war by Lincoln's soldiers was that of the Fair fax marines on Miss Siidell; 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 liily livers of the Yankees, is partially attributable to the management of the Palmer ston Slinistry. That Cabinet gave Seward and Lincoln the chance of humiliation, when it could have taken redress with the high-hand, and shut the door to apology by re calling Lyons, sending home Adams, and setting the British fleet at once In 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 mouths 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 t.ausmit a heroic memory to posterity, we must prove to ourselves ni 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 eight of its extinction and the spectacle of his country's Ftlia—to die in the last ditch of their defence.
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