0 t JJLLAR PER ANNUM INVARIABLY IN ADVANCE. TOWANDA : Thursday morning, January 10,1861. MESSAGE. To the Honorable the Senators and Members „t the House of Representatives of the Com vimueeallh f Transylvania : sti.kmes In submitting to the Gener- Y-sembly niv last annual communication, it s the source of unfeigned gratification to be able to announce to the people, and to their Uppresentatives, that notwithstanding the ..resent unfavorable crisis in the monetary af j ,jrs of this country, and the general prostra te',n of business and credit, the financial con dit.on of Pennsylvania is highly satisfactory. The receipts at the State Treasury, from all sources, for the fiscal year ending ou the 30th of November, 1800, were $3,470,257 31, to which add the available buluuoe in the iieas urv on the Ist day of December, 1859, $839,- L 'o 09, and the whole sum available lor the vear will be found to be $4,318,580 40. iiie expenditures, for all purpo>es, tor the same '£d, were $3,037,147 32. Leaving an available balance in the Treasury, on the Ist dav of December, 1860, of 631,433 08. Ine following items are embraced iu the expendi tures for the fiscal year, v.z : i. gewaoai naig Ke'.tvl • .-sPfpLvA •> ui "" Interest a-rtiti .a.j s---- -• • '- Pome-tie creditor'scn-tibc t. - ...... Damages ou public work-. \ e.J claims —h-14 .1. Making, of the public debt actually paid during thenar, the oi ShJl.tj, SJ The muded and unfunded debt ol" the Com ttiouwealth ou the firat day of December, 1359, wu- us to.lows : KI ND .0 IIEBT. f, nor cent loan- $ 10(1 /."JO 00 37,(i2.>,ir>a at 4 ; di< a-xs.Aoo oo ' a.j we,Ooo oo T funded debt Js.jlU.U.-U 07 LNFCNDLO DEBT. : notes in circulation |101.213u0 lull-rest certificates outstanding 18,51A S3 OJ uucUiuiuii 4.44s US Domestic creditors -02 do total unfunded debt .. 131,077 7u Making the entire debt of the Common wealth, at the period named, $38,648,901 07. The funded and iitduudeii uebl ot the fituie, ut the close of the lu;t lineal year, Dec. 1, '6O, stood as foliow s: I IMJED i>:;cr. fi per cent Joans #IOO 13!) 00 4c d<, ;?Sl,2tW (HJ 4 (lu 100,000 00 Total funded debt ... 37,549,125 72 lmtndkd nr.nr. i Itt-i.uf note-i in circulation 90.402 00 l ...u-re-t certilkaU -, outstanding If>.u74 110 I fW I lls Its I Dwestic creditors' certificates 797 10 Total undiluted debt 120.72176 Making the entire public debt of Pennsyl niiia, on the first day of December, Inst, $37,- .'>'.*,B47 50. to pay the principal and interest of this debt, besides the ordinary sources of-revenue, the Commonweath holds the following mort gage bonds, derived from the sale of her pub !v improvements, viz • ..Is of Penasvlvauia railroad company $7,200,00 • *u i! a.U nf Siinb rv and line raili.<;nl C'u. 3/>oo,l>oii 00 Bands of WyotntitJ caul corj;>ar.\ 2*1,00' 00 T :i. .. 10,061.000 00 A; '.i.t . -c of the it-cat year, on the tirst dav i i Dt-, ember, I- '7. the public debt i.i -. ii> Co u uiinwcaltii, funded and uu tuuded was $39,381,733 22 It i- u. a, at the clo.-c of the fiscal year bSO #37,909,647 50 Having been reduced during the last 3 y'rs 1 yqi 72 D-iv lable balance in the Treasury on w hr-t day ot Dec. 1657, was $.<26,101; 47 vii ■ .; -t day uf Dec. 1-00. it was ... t>si,4A3 06 ''rr?C'Y-.j{ -' .rmer balance in ttie sum of 153,325 01 J i to tltis the sum j.aid at the Treasury ■iirnu- the past thiee years, tor debts #a. I.i i- against the Commonwealth i... ng out of the construction aud iintainance of t!ie pub!i<- improve wats, and which was substantially of the uutuuued debt of the t'orn aomviallh, amouutiug to 171,004 82 And we have the sum of 324,991 42 I>y adding this sum to the aruouut paid on ac public debt from December 1, 1857, to DwMiber 1, 1S'0, io wit: $1,911,890 72, it V:il be lound that during the past three ars the State has not only met all her ordi- Mrv liabilities, including the expenses ot go verotnpnt, and the interest on Iter public debt, but h is diminished hrr actual indebtedness the earn of $2,236,882 15. Cheilitis remembered that for the last '-..roe years the tax on real and persoual estate been Let two und a half mills on the dol -w, while from 1844 to 1857 it was three wills—that for the past two years aud six •Girths the State has received no part of the •ax ijq tonnage due from the Pennsylvania railroad company—and that since July, 1859, •ue interest on the bonds held by the Slate •7mutt the Sunbury and Erie railroad compa :.v has remained due and unpaid, it is certainly ft '° r ' iea: t >' cougratrtldtion, that without U!! r rom these important sources ot revenue, so tgeat u reduction of the public debt has been omphslied in comparatively so short a pe f" lb* s fufldt-d debt of the State is now > Ul -' l ' liiS s ' Doe and unfunded 3 • lating debt, which at that time amount n almost entirely redeemed. It is now re- Jwd to $129,721" 78-and of this sum over "ifcly oue tLou?aud dollars consists of relief f', n J ost which are undoubtedly either j-. ui troytd, and will, therefore, never be .or payment. The claims against r ,..-.j, dte ' accru '"g f r °ia the construction aud j, 0w u ' fcr canals aud railroads, are Ue Z. ' < to a tnere "° iai!lal SUi 5 aa <-l, i.i ntare, after providing for the ordinary ex- Pcusc of government, her revenues and'her Sof T eXc!l,Bive| y PP*'■ if, - t ' t*" "j a . f f T *' {< *} )U nteil • ij.noj; -, #ii iin fctl a! I *J( * 4 fe i 4 ##|Jk Vk Tfl ff 4 f Tho people of this Commonwealth have hitherto met, with promptness, the demands made upou them, from time to time, for the ways and means of replenishing the public Treasury ; and now, that they see that the onerous debt with which they have beeu so long burdened, is each year certainly and ra pily disappearing—that the amount required to meet the interest is annually being dimin ished—that consequently a still greater sum can each year be devoted to the reduction of the principal of the debt, without resorting to additional sources of revenue—and that, with a proper husbanding of the resources of the State, the day is riot far distant when direct taxation in Pennsylvania will cease altogether —the payment of such taxes as may for the time be required to meet the public necessities, will continue to be met with cheerfulness and alacrity. But they will unquestionably hold those to whose care they bavo entrusted the financial interests of the State to a ri:;id ac countability. That there should, at this par ticular juncture, when the business and mone tary affairs of the country are so greatly de pressed, lie the strictest economy in public ex penditures, is so manifest, that it can scarcely tie necessary to call attention to so plain a du ty. It is equally clear that any legislation which would tend greatly to lessen the reven ues of the Commonwealth, would, at this time," be peculiarly unwise and inexpedient. The exigencies of the future no tnau can foretell— the prospect before us is beclouded with doubt and uncertainty—it is therefore, no more than the part of wisdom to guard, with unceasing vigiiance, all our present sources of revenue, and to thus be prepared for every possible con tingency. Since July, 1858, the Pennsylvania railroad company has refused to pa/ the tax ou ton nage required to be paid by the act incorpor ating the company, and its various supple ments ; and there is now due to the State, on that account, exclusive of interest, the sum of $674,296 22. lucluding the interest, the sum now due is about $700,000. Before my last annual message was communicated to the Legislature, a case had been tried in the court of common plea-of Dauphin county, betweeu the Commonwealth and the railroad company, involving the question of the constitutionality of this tax, which was decided in favor of the State, and the imposition of the tax pronoun ced constitutional. In January last, another suit was tried between the same parties, in the same court, involving the same question, with a like result, in December last, a judgment was obtained in the district court of Philadel phia, upon one of the semi-animal settlements, for $1 li>,ooo. So that judgment has been obtained for $365,000 of the debt, being the whole amount which became due prior to 1960. Tim tax which accrued during the past year, amounts to £303,829 03. The first set tlement for the year is before the Dauphin County court, on an appeal taken by the com pany ; and the second, or last, settlement was made but a few days since, by the accountant department of the Commonwealth. After the recovery, in the common pleas of Dauphiu county, the cases were removed by writs of error, taken on behalf of the defend ' ants, to the Supreme Court of this St ,te, ' where they were argued in June last, and in : October that tribanal sustained the decision of . riie court of corution pica®, utid held tlie tax j to he t-ieurly constitutional : thus uniting with 1 the law making power in affirming the right of the State to tax a corporation under a law to which it owes its existence. But, notwith standing this concurrence of opinion and ac tion on behalf of the constituted authorities or Pennsylvania, the litigation is not yet at an end ; for the railroad company has recent ly removed the cases, bv writs of error, to the Supreme Court of the United States, w uere they are now pending. Tuat the decision of that court will, when made, fullv sustain the right of a sovereign State to enforce a con tract between the State and a corporation, and entirely vindicate the power of a State to im pose such taxes upen corporations, as in her sovereign will she may deem proper, I cannot for a moment doubt. To complete the history of this important litigation, and to show that every effort has been, thus far, made to compel the payment of this Inrtre sum of money into the Treasury of the State, it is proper to add, that the law officer of the Commonwealth, being of opinion that the writs of error were not i-sued from the Supreme conrt of the United States in time to prevent the collection of the judg ments rendered in the State courts, executions were issued to the Sheriff of the County of Dauphin, and proeediugs are now pending in the Supreme Court of this State, to determine whether the Commonwealth can compel the payment of the judgments already recovered, before the final rfK-ision by the Supreme Court of the United States. The Scnbury and Erie railroad compauy having failed to negotiate its mortgage bonds iu their present condition, the expectations confidently entertained of an early completion of that most irnj>ortant improvement, have not been realized. The work daring the past year, however, akhongh greatly retarded, has been continually progressing; upwards of one mil lion of dollars having beeu expended ou the lute froui November, itio'J, to November, ISGO. The whole length ot the road, from the boro' of Suubury to the harbor ou the lake, ut the city of Erie, is -'tis mile* ; of which 1-18 miles ate now finished and iu operatiou, unJ 115 utiles of the remaining portion of the line are graded ; leaving but twenty-five miles yet to grade. Pennsylvania is largely interested iu the early completion and success of this great thoroughfare, not ouly because she is the cred itor of the coutpauy to the amount of three and a half millions of dollars, but for the ad ditional, and more cogent reason, that the im provement, w hen completed, v ill opeu one of the most important channels of trade between the city of Philadelphia aud the great lakes of the west, at the best harbor on Lake Erie, entirely within the limits of our own State, which lias ever been contemplated, it will, moreover, develop the resources of a 'urge PUBLISHED EVERY THURSDAY AT TOWANDA, BRADFORD COUNTY, PA., BY R W. STURROCK. portion of north western Pennsylvania, abound ing with the richest minerals, and a lumber region of unsurpassed excellence, which the munificent hand of the State has hitherto to tally neglected. By disposing of her branch canals to that company, in exchange for its mortgage bonds, the State has already large ly aided in the construction of this great work ; and it may be necessary, to insure its completion, that further legislation should be had in order to render the means of the com pany available. It is evident that a libera! policy, on the part of the government, wiil promote alike the interests of the Common wealth and the railroad company ; neverthe less, great eare should bo taken to protect, as far as possible, the debt now due from the company to the State. If all propositions which may be made for a change in the secu rities now held by the Commonwealth, be carefully considered by tlie Legislature, and no more yielded than sound economy demands, with proper provision for the due application of whatever means may be realized, it is be lieved, that sutlicicnt relief can be granted to the company, to enable it promptly to finish the road, while the security remaining will be fully adequate to insure the ultimate payment of the principal and interest of the bonds of the railroad company now held by the Com monwealth. I recommend this subject to the Legislature, a- one entitled to its most careful consideration, as well on account of its vast importance to that portion of the State through which the railroad passes—to the cities of Philadelphia and Erie—and to the railroad compauy—as to the Commonwealth herself. Premising that whatever policy it may be thought expedient to pursue, should be adopted solely with ref erence to the protectiou uud furtherance of the public interests. The attention of the Legislature is again invited to the subject of general education.— At the preseut juncture it presents peculiar claims. The experience of a quarter oi' a eeu turv has sa tilled the proverbially cautious peo ple uf Pennsylvania, of the adapleduess ot the common school .yateiu to tleir wants und con dition. Mo le, but entirely ir responsible to any superior tribunal. A gov ernment, on the other hand, whether created by consent, or by conquest, when clothed with legislative, judicial and executive powers, is necessarily in its nature sovereigu ; and from this sovereignty flows its right to enforce its laws and decrees by civil process, and, in an emergency, by its military and naval power.— The government owes protection to the people, and they, in torn, owe it their allegiance. Its laws cannot be violated by its citizens, without accountability to the tribunals created to en force its decrees and to punish offenders. Or ganized resistance to it is rebellion. If suc cessful, it may be purged of crime by revolu tion. If unsuccessful, the persons engaged iu the rebellion, may be executed as traitors.—. The government ol the United States, withia the limits assigned to it, is as potential in sov ereignty, as any other government in the civi lized world. The Constitution, aud laws made in pursuance thereof, are expressly declared to be the supreme law of the land. Under the Constitution, the general government has the power to raise and support armies, to create and maintain a navy, and to provide for calling forth the militia to execute its laws, suppress insurrection and repel invasion. Appropriate statutes have been enacted by Congress, to aid in the execution of these important govern mental powers. The creation of the Federal Government, with the powers enumerated in the Constitu tion, was the act of the people of the United States, aud it is perfectly immaterial that the people of the several States acted separately within the territorial limits of each State.— The form of their action is of no coosequence, in view of the fact that they created a Fede ral Government, to which l they surrendered certaiu powers of sovereignty, aud declared those powers, thus surrendered, to be supreme, without reserving to the States, or to the peo ple, the right of secession, nuliiflcatiou or oth er resistance. It is, therefore, clear that there is no constitutional right of secession. Seces sion is only another form of nullification. Ei ther, when attempted to be carried out by force, is rebellion, and should be treated as such, by those whose sworn duty it is to maintaiu the supremacy of the Constitution aud laws of the United Slates It is certainly true, that iu cases of great extremity, "when the oppression of government has lieeome so intolerable that civil war is preferable to longer submission, there remains the revolutionary right of resistance; but where the authority of the government is lim ited by a written Constitution, and each de partment is held in check by the other depart ments, it will rarely, if ever, happen that the citizen may not lie adequately protected, with out resorting to the sacred and inalienable right to resist and destroy a government which has been perverted to a tyranny. But, while denying the right of a State to absolve its citizens from the allegiance which they owe tj the Federal Government, it is nevertheless highly proper that we should care fully and candidly examine the reasons which are advanced by those who Lave evinced a de termination to destroy the Union of these Ameiicau States, and if it shall appear thai any uf the causes of complaint are well found ed, they should be unhesitatingly removed, and as far as pos.-i hie, reparatiou made for the past, and security given for tae future ; for it is .iot to te tolerated, that a government created by the people, and maintained for their benefit, should do injustice to any portion of its citizens. After asserting her right to withdraw from the Uuion, South Carolina, through her con vention, among other reason?, declares that she is justified iu exercising, at this time, that right, because several of the States have for years not only refused tofuffil their constitution obligations, but have enacted laws either nul lifying the Constitution, or rendering useless the acts of Congress relative to the surrender of fugitive slaves—that they have permitted the open establishment of societies, to disturb the peace of other States ; that the people of the uou-slaveholding States have aided in the escape of slaves from their masters, and have incited to servile insurrection those that re main—and have announced their determina tion to exclude the South from the common territory of the Union. As the Representa tives of the people of Pennsylvania, it be comes your solemn duty to examine these se rious charges, made by the authority of a so?- ereigu State. Pennsylvania is included in the list of States that are charged with having refused compli ance with that uiaudate of the Constitution of the United States, which declares " that no person held to service or labor in one State, under the regulations therein, be discharged from such service or labor, but shall be deliv ered up, on claim of tho party to whom such service or labor may be due." So far from admitting the truth of this charge, I unhesi tatingly aver, that, upon a careful examina tion, it will be found that the legislative and judicial action of Pennsylvania, whether as a colony, as a member of the old confedera tion, or under the existing Constitution of the Uuited Stales, has been almost invariably in fluenced by a proper appreciation of ber owu obligations, aud by a high regard tor the rights, the feelings aud the interests of her sister States. As early as 17OA, the provincial authorities of Pennsylvania, after reeitiog in the pream ble, that '* the importation of lodiau slaves from Carolina, or other places, hath been ob served to give the Indians of this province some umbrage for suspicion and dissatisfac tion,'' passed an act agaiust the importation of ludiau slaves lrom any other province, or col ouy, in Atner.ea, but at the same time declar ed, "that so such ludiau slave, as deserting his master's service elsewhere, ?hall fly into this province, shall be understood or constru ed to be comprehended within this act." And wheu, in 187U, more than eight years bcfoio the Constitution of the United States went koXCLLDED O.N iOl'Rrfl. rAsfc 1