ONE DOLLAR PER ANNUM, INVARIABLY IN ADVANCE.
T () W A N I) A :
Satnrban ftlorninn, Saimani 13. 1535.
Governor's Message.
To the Honorable the Senators awl Members of the
House of Representatives of the General Assembly:
GENTLEMEN: —
Whilst the events of the year just closed,.present
many causes of joy and congratulation, and afford
abundant reason for thankfulness to a benilicent
Providence lor his goodness and mercy our pros
perity and happiness, as a people, I regret to say,
has not been unalloyed The general growth olthe
country, the progress of the arts and sciences, and
other causes of moral and and social comfort, have
not. it is true, been interrupted; but the loss of
valuable lives and property, by the casualties of the
elements, lias been unusual, both in number and
extent; and in certain sections of our Common
wealth the afflictions of pesiilenc iand disease have
also been sorely felt. Nor should we estimate
lightly the sufferings that manifestly exist amongst
the poor in our cities and towns. The drought of
the season deprived the husbandman, to some ex
tent, of the anticipated rewards ol his labor, and
and lessened the means of human subsistence;
whilst the depression in monetary and business af
fairs, has deprived many laborers and mechanics
of their usual earnings. The means of subsistence
are thus greatly enhanced in value, at the same
same time that the opportunities of earning thern
are much diminished. The field for charity iscon
sequently wider than usual ; and to meet its rea
sonable demands on the pari ol ihose blessed with
abundance, will be to sustain the christian charac
ter, and measurably to merit the continued bounty
of Heaven.
The operations of the Treasury for the last year,
will be presented to ycu in detail, by the head of
that department. The results are highly satisfacto
ry, showing a steadily increasing revenue from
neatly all the ordinary sources.
The aggrega'e receipts lor thefiscal year of 1854
including Joans and the balance in the Treasury, on
the 30th November, 1854, amounted to the sum of
56.ft04.D12 01 The gross payments for the same
period, to the sum of $5,424,983 29 ; leaving a
balance on the 30tli of November, of $ 4 240 929 72
The extraordinary payments consisted of the fol
lowing items, to wit: loans repaid, $235,853 40 ;
to the North Btanch canal, $206,552 76; to the
construction of the new railroad over the Allegheny
mountains, $461,921 03; to the payments ol debts
on the public works, $389 946 33. Of the balance
remaining in the Treasury, a portion is applicable
to the payment of the State debt, and the remainder
to current demands.
The simple, or ordinary operations of the Treas
u y for the same period, were as lollows, to wit:
the receipts, exclusive of loans and the balance in
the Treasury on the 30ih ol November, 1853. re
alized from permanent sources, amounted to the
sum 0f55,218_099 00. The ordinary expendiures
including the interest of the State debt and all the
payments on the finished lines of the public works
—excluding the payments on new works an I loans
amounting to £4,116,744 84 ; being $l,lOl 490 15,
less than the receipts.
This statement may be regarded as the wot kings
of the Treasury simplified; and as establishing the
gra'ifying tact, that the present reliable revenues of
the Slate, exceed the ordinary or unavoidable ex
penditures, over a million dollars; and that, re
lieved Irom the demands for the constructions of
new improvements, the Treasury could pay a mil
hon or more of the public debt annually. It will
also be perceived that the income from ihesesour
ces is steadily incroasing. For instance, in 1846,
with the State tax at present rates, and the same
extent of improvements in nse, wiih neatly all the
present sources of revenue in operation, ih gross
receipts amount to but little over three and a half
millions.
No more reliable esumate of the operations of
tne Treasury for 1855 can be made, than is furnish
ed in the results for 1854. The ordinary receipts
tnry be salely estimated at a million of dollars
above the unavoidable expenditures. A portion ol
this exce-s will be required to complete the new
Portage railroad arid the North Br inch canal; and j
the remainder should be faithfully applied teward
the payment of the State debt.
Tne aggregate receip's on trie public works for
he past year, as reported by the Canal Commis
sioners. amounted to the sum of Si 876 078 00—
and the expenditures to the sum at 51,101,570 54 ;
leaving a balance oi $774 503 34, from which,
however, should be deducted life sum of $37,900.
properly chargable to the year, for new locomotives
ar; ' 0 her unavoidable expenditures—thus reducing
■ e net profits to $736 608 34. If we add to this, '
v-:3! >OO 00 received from the Pennsylvania rail
1' company for the three mill tax, which is
' nmed by some as a pari ol the income Irom the
I wotks, we find a net revenue of $867,000 ;
a "Um equal to the interest on seventeen millions
-• -e five per cent, debt ol the State. The aggre
I - 3i -' receipts were 857,121 less than for the year
I 18 "Q i
I ard ihe reduction in expenditures amount to
" ■ >139.257,00. The withdrawal o! the business
I ' "' e l >t} nnsylvania railroad from the Portage road
I dy accounts for this difference.
'-wed in every aspect, this exhibit is gratify-
I = lew similar systems of improvement in the
* • r ) can present a more favorable picture. Some
tnr h in other States, have recenily been re
I -■ ! o a condition of virtual insolvency. Ttie
~ LJ ' e °J business on the State woiks for the two
I Hats, has exceeded our anticipations ; and but
I • le necessity which seems to exist for a reJuc-
I '• toils to meet aurrounding competition, the
j -,p Ve ' Ue WOu 'd bave been largely incieascd. The
I er *. movement now on loot amongst railroad
I -oi, an ' e *' 10 advance these rales, may perhaps,
eve ' ! ® ' S!al9 lo some extent in this respect.
THE BRADFORD REPORTER
The Delaware division makes a most gratifying
exhibition The gross leceiptscounted S3GS 325 07,
and the expenditures $59,738 67, showing a net
profit of $305,588 40 ; a sum equal to the interest
on six millions of the public, debt, and to 20 per
cent, on the original cost of the work including the
expenditure lor new works.
The North Branch canal and the Columbia rail
road also present favorable results. The business
and lolls on the former have increased with mark
ed rapidity; and the management on botli these
branches bear the marks of skill and economy.—
The expenses on the Allegheny Portage road have
been largely teduced, and the business better reg
ulated than at any former period. As a whole, I
feel constrained to say, that* the condition of the
publ.c works have been improved during the last
year; in no particular, toso valuable an ex'fnt, as
in the matter of contracting debts, which it scemt
has been almost entirely avoided. The officers on
the respective lines repoit that they have paid all
expenses: and some of them have gone so far as
to say to the Canal Board that they will be person
ally responsible lor any debts that may hereafter
be discovered. This is truly a great reform—lor
nothing has cost the State so much, as the pernici
ous practice of making debts oh the public woiks;
I still think it should be interdicted by positive
law.
In my last message I gave my views at length,
as to the principles and rules that should control in
the management of the State improvements, and I
need no: repeat them in this. 1 would respectfully
suggest, however, that so much of the law as binds
the Canal Commissioners to a fixed rate of tolls for
the whole season, should be repealed. The offi
cers directing the operations of the public works
should, it seems to me, be left free to meet the ex
igencies in trade and commerce, as they may
arise.
The woik on the Mountain railroad lias progres
sed slowly, and it is obvious that it will not be ful
ly completed before the summer of 1855 I must
confess myself sadly disappointed as to the time
and money consumed in the construction of this
work The expenditures, since I came into office,
have greatly exceeded the whole amount estimated
as necessary to complete the line, and yet, it is
but justice lo say, that the Pennsylvania railroad,
lying parallel with it, has cost a still larger sum per
mile.
I.have endeavored, during my service, to guard
against the commencement of schemes ol this or
any other character, to entail future liabilities on
the Treasury. This ought to A)e the settled policy
of the State. No new improvements should be un
dertaken. upon any pretext whatever. The pay
ment ot the debt, and that only, should absorb the
surplus revenue of the treasury. If litis policy be
pursued, no other financial scheme, to pay the
debt, will be necessary. Thelarge annual surplus
will reduce ffiB State's indebtedness with sufficient
rapidi'y
1 regret, exceedingly, the nscessity of announc
ing 'o you that the North Branch Canal is riot yet
in full operation It is now more than a year since
the Canal Commissioners directed the water to be
let into the mam trunk ol that improvement, and
d 'dated 'heir confident belief, that it would be in
-uec \sslul operation by the middle ol last summer
—but their sanguine expectations, as well as those
of the people, have, in this respect been sadly dis
appointed* A variety ol unforeseen difficulties
presented themselves in the way ot the attainment
t oi this end. The old woik, construed some twelve
j of fifteen years since, as well as some sections ol
the new, located on the hill side, near the mrrgin
of the river, when tested by the admission of water,
| turned out to be porous, and totally insufficient in
its material and formation. In some instances
rocks, roots, trees and stumps have been concealed
under the bottom of the canal channel, covered
only by a few inches ol earth ; thus presenting but
a slight obstruction to the passage of the water out
into ihe bed ol t! e river. This is especially the
case in much of the old work, in all such sections
or places, no remedy, short ola reconstruction ol
the bottom of the canal, could prove sufficient; —
and this was necessarily a tedious arid expensive
process. There is s'ill a considerable portion of
the work to remodel in this way ; but it isconfi
dently believed that it will be ready lor use in the
early part ol the coming season. That the umos,
skill and vigilance has at all times been exhibited
by the agents ol the Sate, on this line, I do not be
lieve; but the deficiency, in this particular, on the
new work, has not been so palpable as alleged by
some. Indeed, since May last, great energy has
characterized the management on this line ; the
President of the Canal Board having devoted much
of his time to a personal supervision of this work
•But it is obvious, no degree of capacity in the
State's agen's. for the last year, could have over
come all the difficulties that were encountered, with
sufficient celerity, to have entirely satisfied public
expectation.
A' the timo I came into office, the sum necessa
rv to complete this woik was estimated at $772,-
000. Since that time the sum of $1 206,552 82
lias been expended, and it will still require, as es
timated by the Canal Board. SGO 000 to put it into
complete operation.
Whilst 1 regret this unforeseen cost and delay, I
cannot refrain from repeating my unfaltering con
fidence in the wisdom of the policy that dictated
the completion o| this woik. The large increase
of business and tolls lor theyear just closed, on the
older portion of the line, indicates what we may
safely anticipate from the new ■ and 1 cannot doubt
that the gross amount ol business it will command,
and the revenue it will yield, will exceed the most
sanguine expectations of its advocates. The inex
haustible mines of coal with which ibtst section ol
die State abounds, the products of which are des
tined to pass through tins avenue to a limitless
maikei, will furnish lor its never failing supply of
bushier and tonnage. Besides, its completion
will be an act of justice to the industiioue and en
terprising inhabitants ol that pait ol the Common-
PUBLISHED EVERY SATURDAY AT TOWANDA, BRADFORD COUNTY, PA., BY E. O'MEARA GOODRICH.
" REGARDLESS OF DENUNCIATION FROM ANY QUARTER."
wealth, who have heretofore wiiiingly cou ribnted
toward ihe construction of the other improvements
of thn State, from which they could derive but lit
tle Advantage. It will, also, aJd to the general
prosperity ol the adjacent country ; to the value ol
property, and consequently to the revenues of the
State
At the time ol my inductiou into of
fice the funded debt, including
accurate interest, amounted to the
sum ol #40.151,457 IS
Add to this the loan of April, 1852,
to complete the N. Branch canal, 850,000 00
$41,004,455 48
Deduct payments as follows:
Interest on outstanding certifi
cales, $50,0G3 39
Receipts to the sinking
fund up to this
time, 1,057,856 15
1,103 919 54
Total lunded debt, $36,900,537 94
The floating debt and unpaid appro
priations at the period already in*
dicated, 1,421,090 15
Deduct ihe available balance then
in the Treasury, 750,000 00
$671,090 15
The floating debt, temporary loans,
unpaid appropriations, except for
repairs alter the Ist December,
1854, 1,630 000 00
Balance in the Treasury, Novem
ber 30, 1854. alter deduciing ihe
amount applicable to the old
public debt and the relief issues
then on hand, 865 929 00
Balance, $765,929 00
During the same period the following appropria
lions and payments have been made toward the
construction of new improvements, to wit :
For the re-construction of the Col
umbia railroad, $514,407 CC
For the new railroad over the Alle
gheny mouniains, 1,117,955 93
For ihe completion of ihe Western
reservoir, 52.388 00
For the North Branch canal, 1.206 352 70
New locks of Delaware division, 100,319 99
Sundry special payments, 95,553 71
$3 086,778 05
The foregoing figures exhibit the astonishing
(act, that the Treasury has been annually paying
over a million of dollars towards the construction
ol new improvements and at the same time ac
complished a small reduction of the public debt.
As made my duty, by an act ot the Legislature,
approved the 27th ol April last, providing lor the
sale ol the main line of the public woiks, sealed
' '
proposals for its purcnase were invited, up lo the
ffrst Monday of July last. No offers were made
under this invitation ; and public notice was again
given, on the 14;h of November last, in accordance
with the 29:h section of ihe act, for proposals, lobe
submitted to the General Assembly ; but none have
been received. This improvement is, therefore,
still the property of the Stale, subject to such dis
position as tiie Legislature may deem necessary.
My mind has undergone no change, on the sub
ject of selling the public words, since the period ol
my last message. 1 think the policy of the mens
uie depends mainly upon Ihe price that can be ob
tained, and the conditions on which purchaseis
may be willing to hold those works for the use of
the public. With a full and fail consideration, and
on terms amply protective of ihe rights arid inter
ests ol the people, in Ihe future enjoyment of these
highways—a sale might not prove injurious to the
public weal. But it is certainly neither wise nor
politic to assume that they must be sold for what
ever can be obtained; or that they should, in any
event, be given away. Nothing could have a more j
prejudicial effect upon the interests of the Stale, as
involved in these improvements, than the avowal
of such a determination. Nor is it less unwi=e to
disparage the value of the Commonwealth's pro
petty, at the very moment of putting it in market
for sale. No intelligent private Citi/en would so
act, in reference to his own estate. He would hard
ly give notice to capatalists, in advance, that he
would sell his farm for a lair price; hut if unwil.
ling to pay such reasonable consideration, they
could have it for half the money. Nor would such
a person proclaim, that oi all the farms irt thecoun
try, his was the least productive.
It is certainly the wish of many good citizens of j
the State—perhaps a majority—that the public
works should be sold ; but this desire is evidently
based upon the assumption that tlie measure wou'd
be one of real economy—that it would lessen, with
out the hazard of increasing, their annual taxes
The realization of such au object, it mutt be per
ceived, then, depends entirely upon the price and
terms. Those who desire a sale, certainly expect
ihe State to be the gainer by such a measure. No
other imnottant, or sufficient reason lor parting with
ihepicpcrty has been assigned.
It is usually said that the work should be sold to
pay ihe public debt arid lessen the burthens of the
people; but it must be observed, that a sale might
be made at a price far too low to effect such pur
poses; and if so, to give them away would be still
less likely to produce the desired result. Should
the gross sum received, not be equal to that on
which the net: earnings would pay the inieiest,
then the effect would bo to increase rather than
diminish these annual burthens. This is not what
the people desire to accomplish by a sale ; nor will
they be sati.-fied with such a disposition of their
property.
The real value of the public wotks, is a propo
sition lull of difficulty ; and doubt not the General
Assembly will approach the inquiry, duly impres
sed with its impotlance. Ten millions of dollars
was fixed, by the law of last session, as the pi ice
for the main line. This minimum is said by some
to be too high, and the failure to sell, regarded a>
the consequence. Others ailiibnte the absence of
bidders, to the condition ol the money market—to
the stfingeul restrictions imposed upon the law;
arid to the efforts that had previously made to dts
parage the value of the line But it is obvious that
more than one of these causes may have operated;
and a greater than all may have been 'he hope Qf
getting this propeity on belter terms, at a future
time. 1 feel very confident that the latter consider
ation was not without its influence. But, be this
as it may, it is certainly wiser to fail to sell from
any one of these causes, than to hazard the works
in the market, without any restriction or limitation
as to price or conditions. A bad sale would as
suredly be a greater misfortune, than no sale at
all.
The benefits resulting to the people from these
improvements, have been numerous and diversi
fied. They have faciliated trade and commerce;
stimulated productive industry in every department;
and have not only enabled the farmer lo reach a
ready market with the fruits of his labor, but have
furnished convenient out lets for Ihe rich mineral
treasures of the State. Without them, the miner
would be deprived of his occupation, the transport
er be left in helpless destitution, and the Common
wealth itselt be permitted to retain a parsimonious
possession of vast masses of natural and unproduc
tive riches. Our predecessors were wise in open
ing these avenues to trade and commerce ; and if
we wish to be rated wise hereafter, we shall not
rashly and hastily throw away the advantages of
their future use. This use, to the full extent, in
the event of a sale, can only be secured by a jeal
ous protection of the right of the people to enjoy it.
The very first conditions of such a measure should
be, that the works, and every branch of thetn, be
kept at all times in good order and in operating
condition, and remain lorever public highways,
for the use of all persons who may wish to trans
port goods or merchandize over ihem, u[ on rates
not greater fftan those charged upon other similar
improvements. No corporation should get pos
sesion of these valuable avenues, on such condi
tions as would enable it to impose unreasonable
burthens on the internal trade and tonnage of the
S'ate, or in any way lo encroach upon the rights of
the individual citizen. To obviate such results, the
powers, priviliges and restrictions ol any corpora
tion getting the works, should be minutely defined.
Fast experience suggests these prudential counsels;
for we have often seen in this State, how difficult
it is to confine the operation of these artificial
bodies within the limits prescribed by the law;
and. we should not fail to profit by the lesson.
By lite 2Qih section of the act ol the 9th of May
las:, providing for the ordinary expenses of govern
ment and other purposes, N'imrod Strickland, of
Chester county, John N. Purviance, of Bu ler
county, and John Strohm, of Lancaster county, were
named as Commissioners to settle certain claims
and debts against the Commonwealth. It was also
made the duty of the Governor to supply by ap
pointment, any vacancy in this commission which
might occnr The gentlemen already having de
ciiried to serve, 1 accordingly appointed William
VV. Williamson, ot Chester county, William Eng
lish of Philadelphia, and John C. Magill, of West
moreland county, in their stead.
After a tedious and laborious investigation, these
gn'lemen have completed the duty assigned to
them, and die result will be communicated to you.
in detail, in their own repoit.
I regret to perceive that the accounts so examin
ed and settled, exceed the amount of the appropria
tion nearly $150,000. It is well, however, to see
the end of claims of this character; and Having ac
complished this it will be prudent lo guard against
the recurrence of a similar state of affairs. Indeed,
the practice of contracting debts on the public
be at once and forever abandoned,
h has been a fruitful source ot confusion in the ac
counts, if net of palpable wrong upon the Treasury.
The right to scatter the credit of the Commonwealth
in this unguarded way, is I venture to assert, with
out a parallel in the management of public affairs.
Ol the many defects in the system of managing
trie State improvements, this lias been the most
productive of evil. In my first, as also in my last
annual message, 1 most earnestly urged the Gen
eral Assembly to provide, by law, that ro debt
should be contracted by the officers on the public
woiks;—that the necessary labor and material to
maintain these works should be paid for in cash—
and that each officer should be compelled to settle
his accounts promp'ly. The examinations just
made, demonstrate still more clearly the necessity
for such reform.
Repeated attempts have been made to repeal so
much of the act incorporating the Pennsylvania
railroad company, as requires it to pay into the
Treasury annually, a certain per centage on the
amount ol tonnage which may pass over that road
as ari equivalent lor the privileges granted by the
Common wealth ; but the General Assembly have
as repeatedly rejected the proposition ; and I sin
cerely tiope, that, so long as the State may need
the revenue from this source, all fu'ure attempts lo
accomplish this end, may meet a similar fate.
Having been connected with the legislature
which brought this company into existence, and
clearly cognizant of the motives and purposes
which governed the Legislature in imposing this
condition on the grant, I can discover no reason, in
subsequent events, to justify the relinquishment ol
this valuable reservation ;. but many on the contrary,
to sustain its justice and utility. The discussions
pending the incorpon ion of the company, will best
indicate the object ol this restriction. The eon
siiuction of a railroad from Harrisburg to Pitts
burg, parallel with the Sta'eworks, was very prop
erly urged as indispensably necessary to meet the
wants ol the travelling public, and to enable our.
metropolis to compete successfully with othercom
mercial cities. The very first and most formida
ble d.ft culty which presented itself in the way of
this enterprise, was the piejudieial effect such a
work might have upon the business and profits of
the main line ol the public improvements. It was
urged on the one hand, that the Slate wotks had
been constructed at the expense ol the people o|
the entire Commonwealth —that those residing in
the extreme portions of the §tate, as well as tho^e
of the interior, had, annually, contributed towards
the payment of the interest on ihe'debi,which had
thus been contracted ; arid, therefore could not.
consistently with the principles ol justice and
equity, make a grant that would depreciate the
value of property which belonged to all, for the
purpose of fostering the growth and prosperity of a
particular portion of the State. Good faith and
correct moral principle forbade such action. On
the other hand,it was alleged that the increased bu
siness which such an improvement would throw
upon the Columbia railroad, and the enhanced value
of property adjacent to the proposed Iroad, from
which Ihe State would derive increased revenue in
the form of taxes—would constitute an ample re
muneration to her coffers, and thus do full justice
to the people as the owners of the works to be
affected. But a majority of the Legislature con
cluded that some additional benefits were demand
ed, and hence the adoption of the provision to
which 1 have referred.
The stock was subscribed with a fullJrnowledge
of this reservation, and the acceptance of the char
ter by the company, was the consummation of a
solemn agreement between them and the State.
Yet, under the specious plea that it imposes a tax
on trade, the Commonwealth is now asked to re
linquish this condition; and the case is argued as
though it had been the policy of the law, that the
company should impose this charge of three mills
per ton upon every species of property which may
pass over its road ; and in this way it is very readily
shown that on coal, iron, lumber and other cheap
tonnage, this charge would be too great. But the
company are obliged to asess this lax on all kinds
of tonnage; nor was it the intention of ihe act that
they should do so. The design was to make an
exaction fiom the nett profits of the company for
the use of the public coffers, as a compen-atiou for
a valuable grant, and thereby protect the public
improvements from the competition of this new
rrival. The tax on tonnage, therefore, was intend
ed to indicate only the mode of ascertaining the
sum to be paid, and not the specific tonnage on
which it stioulJ be charged. When the sum is in
this way ascertained, it matters not to the State how
the company obtains the money ; whether it be by
charges on freight, or on passengers—on local, or
on through tonnage. Should therefore, certain
kinds of tonnage be improperly oppressed, the fault
is with the company, not in the law. And surely
it will not be contended that the protection thus
thrown around the works of the State is unneces
sary ; —so far from this, the wisdom and utility of
this feature of the company 's charter has already
been made manifest. The very exigency anticipat
ed by the Legislature has arisen ; the competition
of the railroad is already seriously felt by the main
line. Relieved from this restraint, but a meagre
portion of the carrying trade would be left for that
branch of our improvements. Nor will it be con
tended that the Commonwealth does not need thi
source of revenue.
Bat, viewed alone, as a matter interesting to the
owners and transporters of tonnage, what guarantee
would they have that the rates of transportation
would be reduced, were this tax taken off ? None
whatever. The company could charge as hereto
fore, and thus realize the amount of the tax in ad
dition to their present profits. If they shouldnnto t
do this, their action would differ from that of
similar corporations under like circumstances
But to admit, what, is claimed, that a reduction in
the charges of transportation to a similar extent)
would take place, it must be perceived would du
plicate the loss to the State ; for she would not only
thereby lose the amount of the three inili tax, but
be deprived of a very large portion of tonnage
which would be attracted to the company's road
by this reduction in the rates of transportation. We
are thus brought to the simple inquiry, whether the
State shall retain this valuable income, to which
she is so justly entitled, or whether she shall give
it to the railroad company. Most certainly the
latter alternative should not be adopted, so long as
the question of selling lite Slate improvements re
mains undecided.
As a mere revenue measure, this tax constitutes
an important and increasing item in the annual re
ceipts of the Treasury. In 'the year 1853, it
amounted to the sum of $74,00), a: d for the year
1554, to §131,000.
That this amount will be materially increased
hereatter, is sell-evident. If this important item be
withdrawn from the sinking fund, there will he but
little left to sustain its operations.
I ain aware that these views may be met wi h
the plausible arguments that trade and commerce
should not be thus burthened—that the effect is
prejudical to the business of the State. This is true
ly a certain extent; and should have its full weight
in the adjustment of a question of this character
But it will scarcely be contended that trade and com
merce should be sustained by contributions from a
needy Treasury. On this principle, it could as
reasonably bo maintained that the State should
make no charges whatever for the use of her own
works.
The administration of Governor* Shunk com
menced the cancellation of relief issues ; and that
of my immediate predecessors arrested the process,
leaving 5G50.1G3 000 of this unsightly currency in
circulation. In the spring of 1553, the policy of
cancellation was again resumed ; and up to this
date, §455,38 I 88 had beenr received into the sink
ing fund, applicable to that purpose, leaving the
meagre sum of $154,77S 12, to provide for. The
gratifying fact is apparent, therefore, that, without
any further legislation on this subject, the rntire
outstanding balance of relief notes can be with
drawn from circulation and destroyed during the
current year. It is true that these issues have not
cotnc into the Treasury as rapidly as the funds for
their cancellation have accumulated, and that, con
sequently, a portion of'the receipts have not been
invested. but this difficulty will be obviated in
June next, when the taw will go into operation
which forbids the bunks and receiving officers of
the Commonwealth to pay cut hese issue?, and re
WDamEia g^rcqonmropfraift
buires them to be presented at the Treasury (or
cancellation.
Mj 0,/inton on all questions that concern the
currency, have fieerr go often expressed, that they
must be well known to the Legislature, and need
not be given at length, in this commanica ion.-
Without, at any time, assuming it would be wise,
for this State, regardless ofthe policy of other Com
monwealths, todispense suddenly and entirety with
banks of issue, it has been uniformly held that tire
amount of banking capital as a basis for paper cir
culation, should; be closely limited to the urgent
want of commerce and trade. If the experience r 1
the country is worth anything at all, it has demon
strated the correctness ofjhis policy; and that the
use of small bank notes should be discouraged and
forbidden. In accordance with this view of the
subject, I have, on past occasions, refused to sanc
tion any extensive increase of banking capital.
Every commercial country is liable to alternate
seasons o{ excitement and depression; to periods of
extravagant over trading, followed by ruinous re
vulsions The reaction now felt is the inevitable,
if not the natural counterpart of an undue expan
sion of credit, in the form of bank paper, railroad,
State and corporation bonds and individual obliga
tions. In those states where the free, or stock
banking system had stimulated the expansion, the
workings of the reaction have been disastrous. In
our own beloved Commonwealth, the shock has
been sensibly felt, though far less severe than in
o her parts of the country. Her partial escape, it is
believed, is mainly owing to her prudent and re
striclive policy in the use of bank credit. It is, at
least, very clear,tliat had the free,or stock banking
plan, at one time so zealously advocated, been
adopted in this S ate, or had onr present system
been greatly expanded, the position of affairs in
our commercial metropolis would not have been so
lavorable as at present. Had the natural tendency
to speculation received this artificial stimulant—
the limits of safety, like the Ipssons ol experience,
would have been passed unheeded ; as it is, some
good men, in the pursuit of useful enterprises,have
been prostrated. It is most unfortunate, that under
his influence, all must suffer alike. Those who
profit least by the expansion, are often effected
most by the contraction. This is especially the
case with labor, which is unifoimly the last to be
elevated in times ol prosperity, and the first to go
down in those of depression. The banks, as a ge
neral rule, make the most out of these convulsions.
It is often their error to flatter the meichant and
trailer when the tide of prosperity runs high, and
to forsake him on the first appearance of its ebbing.
Even sound batiks and of good repute, it is said,
are seeking to make money out of the present cri
sis, by sharing their capital and its benefits with
brokers and jobbers, instead of aiding the business
community at legitimate rates. How far these al
legations are warranted,it is difficult lodecide; but
it is to be hoped that few, if any of our banks, ate
justly liable to this charge, for such a practice would
be highly improper, and well calculated lo excite
discontent. Such a departuie from legitimate busi
ness would demand a prompt remedy at your
hands. It may be difficult to confine ihese institu
tions lo their proper business, with the prospect of
belter profits in other quarters; but they should
be made to leel that they have been created lor a
higher purpose than rnereiy to enrich the stock
holders.
The crisis is a trying one ; but there is still rea
son to hope tiiat the credit and trade ol the oounby
will never suffer as much as it has done on similar
occasions, in times past. There is now no Nation
al Hank to mislead the meicantile class, and to em
barrass the commerce which it professed to aid.—
Still the shock will be great enough to lead the pub
lic mind to enquire alter a remedy for these peri
odical convulsions. And, surely, we may be per
mitted to hope, that the good sense of the people
will never again be imposeJ upon by those crude
experiments which have, on some former oc
casions, so tearfully aggravated the evils they were
intended to to remedy. I respectfully advise the
Genera! Assembly against all such expetiments.—
The remedy, tube permanent,must be natural one;
artificial means may add to present derangements;
but cannot correct them.
An extensive increase of banking capital and
other expedients will, doubtless, be piessed upon
your attention ; but K is hoped that no such fallancy
may find favor. Nor is there any sufficient reason
for the alarm and sensitiveness manifested in cer
tain quarters; the real wealth of the country still
exists, and the natural elements of prosperty are no
Jess than heretofore. It is the shadow, not the sub
stance that is passing away. The business com
muni'y should look iho danger in the face, and by
their energy, honesty and enterprise, overcome it.
Mutual confidence and forbearance should be cher
ished by all, as a means of accomplishing tins de
sirable end.
In accordance with the provisions of u law pas
sed in April last, a vote of the people was taken,
at the October election, on the policy of prohibiting
the manufacture and sale of intoxicating liquors—
-154.342 votes were cast in favor of the measure,
and 163.510 votes against it.
The proper regulation of this subject greatly
concerns the moral welfare of .the people, ani to
that reason will claim your anxious consideration.
Perhaps no other moral question within the raage
of your authority, so deeply interests the people of
every class, race and condi'ion. Indeed, the un •
moderate use of intoxicating drinks is ati evil dial
has lelt i'.s fatal maik in every vicinage. Its pro
gress, fortunately, has been stead.ly resisted by in
dividuals and societies, who have employed the
power ol truth and reason against it. Theso efforts
have done much, and may do more hereafter to
mitigate the evil. Avoiding all vexatious encroach
merits upon iho rights and privileges of every citi
zen, theie t? clearly no reason why the influence
of a well designed law, regulating and restraining
the sale of intoxicating liquors, should not be
brought to the aid of these individual efforts.—
Although the vote of the people would seem to u-