FIRST ANNUAL MESSAGE ANDREW G. CURTIN, Governor of Pennsylvania, To Both Hots3ei of the Legislature. READ, JANUARY 8, 1861. 2b the honorable the Senate and House of Represen tatives of the Commonwealth of Pennsylvania, Eigermagar It has pleased Divine Providence, during the last season, to give us abundant crops, unbroken peace within our borders, unanimity among our people, and thus to enable this Commonwealth to do her full duty to the country, to herself, and to posterity. For these blessings we have cause to be grateful. The balance In the Treasury on the .80th Nov., 1860, was The receipts during the fiscal year end ing Nov, 80, 1861, were as follow From ord'y sources, 8,017,645.67 From temporary loan under Act of Apr. 12, 1861, at 6 per cent. interest, and negotiated at par 475,000 From 6 per cent. loan under Act . May 16,1861, also negotiated at par.. 2,612,150 From society of Cin cinnatus 600 From United States on ac't military expenses 606,000 From Pay Masters and others, refund ed Total into Treasury for fiscal year end ing Nov. 80, 1861 And the payments as follows : For ord'ry purposes $3,144,480.84 For military expen ses, Under Acts Aprill2, 1861, and May, 15 and 16, 1861, 474,878.86 1,708,482.88 170,635.51 . -- 2,858,872.04 For Ain't loan under Act April 12, 1861, _ repaid Leaving balance in Treasury, Nov. 80, 1881 PUBLIC DEBT, FUNDED AND UNFUNDED Received from tem porazy loan, under Act Apr. 12, 1861 476,000 Repaid as above.... 876,000 Ontatanding Nov.Bo, 1861 • 100,000 Eso'd from loan un der Act May 16, • 1861.. Atn't of public debt, funded and un funded, Nov. 30, 1860 87,969,847.60 Paid during fiscal year 37,868,516.08 Remaining unpaid, (exclusive of mili tary loans above mentioned,) Nov. 80, 1861......... 1110111115 AND ExPaorrumn OP MILITARY VANS, Receipts from mili tary loan under Act Apr. 12, 1861 475,000 " May 16 2,612,160 From Pay Masters and others refund ed Paid for military ex penses, as above, 2,868,872.04 Paid fur redeeming loan, Act Apr. 12, 875,000 Unexpended of mili tary loans MIMPT9 AND EXPANDITUREB OP ORDINARY REVII. Balance in Treasury, . from ord' ry sources, Nov. 80,1860 681,488.08 Bece'd from ord'ary sources during fis. cal year 8,017,646.67 8,699,078,85 Paid for ordinary expenses, as above 8,144,480.84 Unexpended of or iglinary revenue.. . Bec'd from United States Gov. on wet military expend. Bed from Society of anoinnatue Balance in Treasury, as ab0ve. ........ It will be observed that the fiscal year ends on the 80th of November, and the sinking fond year on the first Monday in September, which accounts for the apparent deficieney 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 take and pay for at cost. Arrangements have been made with the general government for the reimbursement of the military expenses of the State since the 27th of July last. The bills as paid are forwarded to Washington and partial repayments have already been made. It will be observed that the receipts from or dinary sources of revenue for the year 1861 have decreased, but as payments have been made on some of ahem since the settlement at the end of the fiscal year on the first of December, and more may reasonably be expected in addition to the payments to be made by the National Gov ernment as hereinafter stated the balance avail able in the treasury will be largely increased. It will also be observed that it has not yet _bean found necessary to call in all of the loan effected under the act of the 18th of gay last. la plume items the ordinary revenue of 1881 wai in excess of that of 1880. BM loan authorised by the act of May 15th, Mel,. mei taken at par. This occrarenhe, most gratifybig under : all the then existing. circum stanced; Of etabarispomit, affords trimnpluta $681,433.08 32,229.45 6,743,525.02 7,424,958,10 376,000 6,878,852 38 $1,551,605.72 100,000 2,612,150 101,881.42 87,868,616.08 82,229.46 8,119,879.45 -- 2,728,872.04 $ 890,507.41 I commend the subject to the immediate considerition of the Legislature, as an effort may be made at an early day to enforce a sale of the canal, and some provision by law to pro tect the interests of the State would in that case be necessary. The wicked and monstrous rebellion which broke out many-months ago, has not yet been quelled. Every' sentiment of loyalty and pa triotism demands its effectual suppression. In my messages of the 9th and 80th of April last, I set forth at length my views of the char acter and objects of the contest which is still pending. 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 interest alone would render the preservation of the Union from the pres ent assault upon it, indispensable to Pennsylva nia. She cannot afford to have a foreign pow er below or abOve or bounding her on the Dela ware, the Chesapeake or the Mississippi, and she will never acquiesce in such a result, what ever may be the coot in men and money of her resistance to it. 654,698.81 606,000 $1,551,605.72 On the 9ih of April last I directed the atten: , tion of the Legislature to the necessity which existed for an improved military organization, and on the 12th of the same month the Act entitled "An Act for the better organization of the militia of this Commonwnalth" passed, ap propriating the sum of $500,000 for the purpose of organizing, equipping and arming the mill tia. On the 15th of April the President, by proclamation, called for a military force of 75,- 000 men, of which the quota assigned to Penn sylvania was at first sixteen (afterwards reduced to fourteen) regiments to serve as infantry or riflemen for the term of three 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 19th of olprii. On that day the passage of other corps; from this and other Stares through Baltimore was imped ed by force and during nearly tivcruks after wards the communication between ifatibington and the loyal Stites was aim* eidirelt cut off. On the 19th 1 received a reqnsat **MIN; War P9PattlsOnt . AIM tire troops PrePan4 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 .sth September last, as follow : Debt redeemed from 4th Septeni ber, 1860, to Ist Sept. 1861 $300,801 0 Of st ock loans $300,050 00 " interest on certifi cates " relief notes I refer to the reports of the State Treasurer and Auditor General for the details of the fi nancial affairs of the Commonwealth. The re ports of the Surveyor General and State Libra rian will exhibit the state of the Dei-artments under their case. The Commissioners of the Sinking Fund dur ing the last spring received trom- tee Philadel dolphin and Erie (late Sunbury and 'Erie) Rail road Company forty bonds of that Company for $lOO,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 Trims 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 bat I granted• my warrant authorizing the State Treasurer to deliver to the said company one thousand of said bonds, being to the amount of one million of dollars. This warrant was issued in conform ity with the law, the five per cent bonds men tioned in the fifth section of the . act (except those belonging to the State and 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 mind notice from the company that the bonds so delivered to the company or their proceeds had been appropriated in accordance with the provisions of the law, on the 21st of June last I appointed John A. Wright as Com missioner to examine and to report to me whe ther said bonds or their proceeds had been ap propriated to the purposes required by the act. His report has not yet been received by me. It is understood that arrangements have at last theca made under which the direct railroad connection between Philadelphia and Erie will be completed within a short time. It is impos sible to estimate too highly the importance of this great work to the Commonwealth, and espe cially to Philadelphia and Erie and the hither to neglected counties 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 company should sell said canals for a greater sum in the aggregate than three and a half millions of dollars, seventy-five per centum of such excess should be paid to the Common. wealth by a transfer of so much of such bonds and securities as said company should receive for the same and flyable in like manner. The company sold the canals and reported that the share of-the profit on such sale, due to the Commonwealth was $281,250 of which $250 was paid in cash and for the remaining $281,000 the Commonwealth received coupon bonds of the Wyoming canal company to that amount, being a portion of bonds for $900,000 issued by that company and secured by a mort gage of the Wyoming Canal, formerly called the Lower Northaßranch canal. These bonds bear an interest of six per cent. per annum, payable semi-annually on the 15th of January and July, and the interest was paid by the company to January last inclusive. The. interest due in July last has not been paid. Judgments hav 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 holder in which such proceed ings were had that by a decree made on the 2d September last the property'and affairs of the company were placed in the bands of a recei ver. A plan has been suggested for the assent of the stock and bond holders which contemplates a sale of the canal under lawful process and a purchase of the same for the purpose of forming a new company, of which the capital stock shall be one million of dollars, divided into twenty thousand shares of fifty dollars each, of which each assenting holder of a mortgage bond for one thousand dollars .shall be entitled to eighteen shares, and each assenting holder of fifty shares of stock of the Wyoming canal com pany shall be entitled to nine shares. Of course no officer of the Commonwealth had authority to assent to the proposal or in any way to affect her position. It is believed also that the plan is not one that ought to be assented to by the Commonwealth, and that under all the circumstances, if the convenience of individual parties requires a‘change such as proposed, the debt due to the Commonwealth ought to be first paid or fully secured. I Suggest that the Act passed Bth of April, 1861, entitled. "An Act concerning the sale of railroads, canals, &c.," should be modified so that in all cases in which a debt may be due to the Commonwealth by the company as whose property a public work may be sold, the pur chasers thereof shall not be =tilled to the bene fits and privileges conferred byithe Act unless they shall have first paid the debt due to the State, or secured the same by their bonds to the Commonwealth secured by a first mortgage on the work itself. in this State should be Clothe!, armed, equip ped, subsisted and transported by the State in consequence of the then inability of the United States. This request warn- of course complied with, and twenty-five regiments, (being eleven regiments beyond our quota,) comprising 20,176 men from Pennsylvania served for the term of three months under the President's proclama tion above referred to.. As the furnishing those volunteers with supplies was neceikarily under the circumstances a hurried operation, and as complaints were made in regard to them, and frauds were alleged to have been perpetrated, I appointed a board of commissioners to investi gate the whole subject. A copy of their report with the evidence taken by them has been al ready laid before the public. It is the intention of the Auditor General to open the accounts of such parties as appear by the testimony to have been overpaid and this course has already been taken in two of those cases. 8,380 01 421 00 $300,801 0 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 Harrisburg without notice and de tained here, waiting to be paid, for an average time of some ten days. Their tents, camp equip age and cooking utensils had been taken from them at Williamsport, Md. and they arrived here destitute of all means of shelter and of preparing their food. The Commissary of the United States furnished uncooked rations, and under the circumstances of emergency I deemed it ne cessary to make arrangements for aiding in the cooking and baking of the rations, and also for furnishing meal 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 appropriatiort to pay them. it ought to be stated that these expenses would have been much larger, but for the lib eral and patriotic efforts of the citizens and espe cially the ladies of Harrisburg ; their free-hand rd hospitality and generous aid to our wearied and hungry soldiers, deserve remembrance and gratitude. At the special session of the Legislature which commenced on the 80th 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 16th of May last, such a corps was directed to be raised, and a loan of $3,000,000 was authorized to defray the expenses o that and other military preparations. Men more than sufficient in number 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 regiments, and were then already assembled and subject to my con trol. Most of these men volunteered for the Reserve Corps and were immediately organized. The remaining regiments wererapidly recruited and the Corps was thus completed, and George A. McCall, of Chester county, was commissioned as Major-General, and assigned to the command of all the forces raised or to be raised under the provisions of the last mentioned act. The regi ments comprising the Reserve Corps were in sttuotad in four camps in different parts of the State, until they were taken into the service 'of the United States. Two of these regiment~, under the commands of Colonels Charles J. Bid die and Seneca G. Simmons, and two • compa nies of artillery under the command of Col. Charles T. ,Campbell at the pressing in stance of the War Department were sent on the 22d of June last to the relief of Col. Wallace, at Cumberland, and remained for pbout six weeks there, and in Western Virginia Nngaged in act ive operations. -Towards the close of July the whole Corps was'called for under requisition, and 'taken into the service of the United Stites; 'Within four days after the disaster at Bull's Rhin, eleven regiments of this fine bodY a 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, and con stitute a division comprising three'brigades, a regiment of Artillery and one of Calalry. The whole expense of raising, clothing, equipping, subsisting and paying the Reserve Corps (including the expense of establishing' and fit ting the camps of instruction, of recrui. g, and supplying regimental flags, and the ex . :of the campaign of the two regiments and compa nies in Maryland and Western Vi • which were all defrayed by the State) has am. ted to $856,444 87. This does not include e trans- portation on Rail Roads, ad the se tioa of that account would have been a wor of great labor, nor does it include the pay of thk two re-. giments during the campaign, but it doei include all the expenses, which were heavy, of teiamsand transportation, not on Railroads, for, the two Regiments on the 'campaign above mentioned. Twelve regiments of the .Reserve Corps were paid, subsisted, &0.,.by the State to the luverage date of 22, July. The two iegintentein Wes tern Virginia were paid by the State' to the date of their departure trom Harrisburg on that expedition. The Caialry regiment was not paid by the State.be perceiVed that the whole average expense pir man was $58.95. Previous to the 31st of Atall last, a regiment city had been enlisted in the ty Eiriafrom North western Pennsylvania. WUn the . call was made on me on that day, fo4 26 additional re giments, the Erie regiment war ordered to march to Harrisburg: The call wad rescinded, heti ever, before the regiment reached Pittsburg, and I ordered it to encamp it that city where it remained until the 30th of June. The Na tional Government declined to muster the regi ment into service—as all sassing requisions made on the State were more than filled. Much apprehension existed: to the Western and South-western borders of thel State, and it was deemed prudent to retain the, regimens at Pittsburg te' meet any einergenqy 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 (Idris; but as the men had been a longiime from home and remained inactive in camp; they declined entering the service, and were subsisted and paid up td the 30th of Juneitthei State. Two. regimentslutve 'since .-been list& from • the same part of Pennsylvania at the 'city of Erie, one of which has been at Witehtegton in service since Settember, and the other irnow ready for marching orders—and it is due b the- firdt Erie regiment to say that most of th men are now in serviee. Further requisitions for six regiments of Infantry and two regiment's o Cavalry were shortly afterwards made by War .Depart ment. Of these, sixteen ha already been raised and Are in the servii , of llr,a United States, and . the `remaining an h i the course of organization and .:ray ready ;to In addition to the req t State, the War Departmea thorities to numerous indi t volunteers in , Pennsylv, • system was found to create merit, a general order was • Department on the 26th of Se ing all such organixitions.ruid t the Governor, and shortly •al bon was made on the Ntate quota to 75,000 men. - ganizations, as they were cal , Pennsylvania regiments and sent forward form rortit state. if _ 4;14 b" The ti men aye dineasem, and the B last to thiffdati 16. Two of the three months regiments have continued in service under the later _requisitions, and re tain their original numbers. Deducting the remaining twenty-three three months regiments, there are ninety-two regiments in service and preparing for it, We have also in service and preparing twenty-four companies The following table of the existing Pennsyl vania volunteer force is given for informa Lion: 66 regiments of Infantry of which 6 were rifle regiments, 71,189 11 regiments of cavalry 12,690 1 regiment of artillery 1,077 OOMPANTIIB snavtae. 7 companiee of infantry, 707 6 " '• cavalry, 678 6 " " a r tillery, 986 Enlistments in other than Pennsylva nia organisations, estimated, (she officers of which are in muse of be ing commissioned,) ,Total ih service,' •MOMENTS PHYPARING 71PWL 191RVIOC. 1.2 regiments of infantry, 1309 9 2 . 1 .6 tilawafry, 1,16 1 " " artillery 1,077 00ZPANIRS PREPILVSNO IVOR 1311117/1011 1 company of cavalry, • 109 4 companies of artillery, 624 In service, Preparing for service, .... Pennsylvania's contribution, 109,615 Exclnatre of 20,175 three months men now dis banded. The regiments preparing for service are in complete. Those that may not be filled by the 16th instant will be consolidated and sent for ward. Of the regiments in service, the 11th and 16th regiments of Infantry are at An napolis; the 28th, 29th, 21st, 66th, 69th, 71st, 72nd and 106th regiments and one comps ity of Infantry are in the command of Major General. Banks ; the 45th, 50th, 65th, 76th and 100th regiments of Infantry are in South Caro lina ; the 48th Infantry are at Hatteras Inlet ; the 108th Infantry and 11th Cavalry are at Fortress Monroe ; the 77th, 78th and 79th In fantry, the 7th and 9th cavalry, one troop of horse, one squadron of cavalry, two battalions of artillery are in Kentucky; the 84th and 110th Infantry are in Western Virginia, as are also three companies of Infantry, lour companies of cavalry, five, companies of light artillery ; the Eth infantry are at Cockeysville, in Maryland; ore company of artillery is at Fort Delaware ; all the remainder of the volunteers are at or near Washington. Upwards of 300 volunteers from Pennsylvania are now prisoners, but as arrangements have been made for the exchange of prisoners it may be expected that they will soou be released. In compliance with the joint resolutions of the 16th of lily last, I have procured regimen tal flags•for the Pennsylvania volunteers, and have presented them in person to most of the regiments. In other cases, the regiments being on or near the Potomac, I have requested Mr. Cowan, Senator, and Messrs. Grow and Wright members of the'House of Representatives, from Penneylvania, to present them in the name of the Commonwealth. The General Government requested that the States would- abstain from purchasing arms, as their competition was found injuriov in the market, and in view of the large'expenditures of money inarming and equipping the volunteer force 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 of 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 the Adjutant General to procure arms as soon as it can be done on reasonable terms and without injurious oompetilion with the National Gov erment Arms have been distributed among the border counties to all the organizations that have been formed to receive them. 1980 arms have been thus distributed. I have also ad &eased a letter to the commissioners of all the border counties, offering arms to them as soon as military organizations shall be formed to ,receive them. :.Besides. thus-complying with ;the requirements_of the 27th section of the Act of 16th May last, I have deemed it prudent to offer five thousand arms to such military organ izations as may be formedin Philadelphia on a plan to be approved by me as Commander-ha- Chief. Muskets and rifles to 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 leaving the State. In some cases regiments have gone without arms under assurances from the War Department that they would be armed at Washington or other near designated points, and that their immediate departure waa requir ed. It was thought wise in these cases not to insist on the arms being sent before the regi menta 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, harnew and all the necessary im plements and equipments were furnished by the State to the artillery regiment ot- the Re serve Corps. Ten of these were purchased by the State, and their cost has been refunded by the United States. Diligence has been used in col lecting arms throughout the State and repair ing and alt_ ring them in the most approved manner. The State has now 62 pieces of artillery, of which 17 need repairs. • • 26,768 muskets and rifles, some of • which are in the hands of mechanial being repaired, 1910 are in the hands of volunteer corps throughout the State; 1930 in "the' .• possession of County Conunksioners, . and 1,000 with the reserve corps of Philadelphia. In addition to this the city of Philadelphia . 9 pieces of rifled artillery, and 4,976 muskets and rifles.: The State has Ma) in the arsenal at Harris -1,966 'sabres and swords, and 1,957 pistols, and the city of Philadelphia ban 440 sabres, and 826 pistols with the necessary accoutrethents. There is Also in , the Arsenal at Harrisbrirg 'a large amount of accoutreme:nta .and smarm+ . tien for artilleriand small arms. The Adjutant General is succarsfolly engaged in collecting arms throughout the State, and it is expected that the number above stated will he largely laereased. 'Probably, at least, 6,000 muskets and rifles and several pieces of artil lefty. will 02111. *t collected. lions on the 'tad given an- Wale to raise but as that Lch einbarraea zed by the War Heber last plat the contrtd,of i.rde a reglad iaoreade.. her Afixtudent orp '3 thus became completed and, quota of the The care which has been-bestowed upon the comfort of the volunteers, and the goodness +tu2cU sufficiency , of !their , trapplies , of: all kinds; sind4ha.exicellent arnulgernenta-bf the Medical Deparhaenhausiesgthe control of Surgeon Ch3n - ell; Item 11..6mtth,`are proved by the fact ,that *pm than 60,000 men have been for vari o generall short ' le pt. tapp certhi. ate VILIIKatia .thni do to the let Uri hlthlitedllittorty-nme REGIUNNTII IN tIBRVICE men at that camp, viz., forty-four from sick ness, two (belonging to regiments from other States,) who had been injured on railroads, two accidentally killed in Camp Curtin and one shot in Harrisburg. To facilitate the making of allotments of their pay by our volunteers in the field for the support of their families at home, I appointed Hon Edgar Cowan, Thomas E. Franklin and E. C. Humes, Eeqs., commisssioners to visit the camps of our men on and south of the Potomac, and also James Park and M. W. Beltzhoover, Fags:, commissioners to visit those in Kentucky and elsewhere in the western country, to call the attention of the troops to the system of al lotment and to encourage them in adopting a practical plan for carrying it into effect. The several reports of these commissionemare highly satisfactory. For &tails on the several subjects connected with the military operations of this State, I re fer to the reports of the Adjutant General, Snr geonGeneral, Quarter Master Gederal, Commis sary General and Paymaster General which ac company this Message. The dutiesjmposed on me were so onerous that I found it necessary to invite the temporary assistance of gentlemen on my staff to aid me to perform them. In 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 remaining until he became con nected with the War Department, Col. Ball until the Ist of June and Col. Wright until the 28d of July ; for the time thus devoted to the service of the State they have refused to re ceive any compensation. Cols. Joseph D. Potts, A. L. Russell, J. Brown Parker and Craig Biddle were in service up to the 20th of December. The Department of Telegraph and Transportation was under the exclusive control of Cul. Potts. The system and economy of its management show how falthfully and well he fulfilled his office. It is but just to all these gentlemen that I should bear testimony to the untiring zeal and fidelity with which their duties were per formed. 84,956 2,22 87,177 6,400 98,577 15,806 16.088 98,677 16,038 The quota of the State having been more than filled, and her military force organized, I was enabled on the twentieth of December last, to disptnse with a personal staff, and the temporary arrangement which had been made for its employment was then closed. By the 18th section of the Act of the 15th of May, 1861, I was authorised to draw my war rants on the Treasury for a sum not exceeding $20,000 for compensation to such persons as might be required to serve the country in a military capacity, &c. Of this fund I have drawn from the Treasury $8,500, out of which I paid the compensation of my personal staff, also other expenses of the military department, and the actual expenses of persons employed on temporary service, none of whom reoeived anyfurther 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 $6,400, 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 States, as far as the same had then been ascertained and settled by the accounting departments here, was made up, to the let 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. The sum of $606,000, has been received from the Treasury Department on that account. The repayment by the General Government of theexpenses attending 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- I portant to the welfare and even safety of the country, it would be right that an act of Con gress should be passed providing expressly for 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 j the military accounts of the State will be pro ceeded in 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 saving 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 thisi tax there should be such revision of the tax laws as will hereafter equitably apportion the burden among the various interests now subject or that can properly be made subject to taxation. The saving of fifteen per cent, to the people of the State by the assumption is a mat ter worthy of thought, but a more important consideration is that it will enable you who re present all the varied intereilte of the Common wealth to apportion the tax hi such manner as to bear equally upon all. Our revenue laws had imposed on real andspersonal property as its full proportion but little more than one third of the taxes needed for the ordinary ex penditures of the governtnent. By, the act of 15th May last, the tax on this species of property has already been increased one-sixth. Should the State refuse to assume the United States tax the whole burden of it will fall upon these in terests, interests too, moat unfavorably affected by the war, whilst other kinds of property and other sources ofrevenue, jridg,ed by our laws able to pay nearly two-thirds of the present revenues of the State, would not be called on to cortrib,ute 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 for the military instruction of youth. The appointment of a military in structor in the normal schools, would in a short period give teachers to the common schools who would be competent to train the boys in attendance on 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 employieg competent instructors at the expense, of the State,requiring the pupils to defray the other expenses. No pupil should be admitted to this school without having passed a thorough 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 perbaps 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 likes, and arrangement are in the course of being effected which it is hoped will be satisfactory in their result. I send with this 'message a copy of a corn mnrdcation from General Totten, chief of the Military Engineer Department at Washington. I' have also repreiehted to the Secretary of the NavY the necemity for floating, defences on the Delaware, and have his assurance that they PigaPrelekted theearlieet moment. ve° had a cOrrestoSndende . with the 'au thorities and eo4 of the citme' pa of Erie 'on Vit y ~ t tfifie'defeicelees condition of that ci , and e part of the State bordering on the lake. On exatuit, there are no defences oni' the ordnauCe at the city 4,f E. ' ; by the National 1861. The Secretary of made, directed that th e States steamer as Michigan banded, as h been us . ati. a 1 1 remain in the harbor I,t Should the Nation a l ii„ e , l fail in its duty providing ~,j, our assailable points. neatly recommend that ti ,• prompt means for that purr,,.;.be admonished, by le, lit la abroad, to be prepare,l for t ) ;,, well as for the supple,leu rection. In selecting a site fait the public good be al ~,,• vania will be preferred, blued advantages of a Letitrii dance of material and :1;111, .1 people of undoubted loalty I commend to the latera l , ..- ture the report of ilie su l Public Schools, the and the rapid progress of „ of just congratulation. The reports of the Lunati risburg and of We. -tern Houses 01 Refug e at Phi ladel;l..l of the Institutions for the far the Lilind and the N. , ,t1,11. Ii less Children at Phil...l,lphi sylvania Training tichool Minded Children at M,.11.1 meritorious chaiiti,.. and I recommend th a the e a, of the Commonweaith ~a.t Under the joint commimioners revenue laws, whose , submitted for the Senate. It is hop d that will be able to report of the Legislature. celisia, impmed on them, and e the present time or a. a formance of the , suggest that the coinpeh- th ; the joint resolution adequate amount. It was evident, I,;nz impossible for the burl, their obligations hi t large issues of pap, was imposed on then' ah.l I the exigencies of the tin,, • fore, was felt at the ments by the banks, whi; I; day, the 30th of I),.cenii-.: circumstances, I rccunurrc 1 lievei from all penalti, , law. Perm/ylvania has made _ port the Government. better clothed, and hem:: , any other State, and has of the military levies. 7LL. izens, young men 0( ~ k cat. , , the ranks of her c duut.cr I gallant conduct, w1n.10.1.,.r been afforded to dim. L. the Commonwealth. 'I mont among our are loyal to the Gov , runi.:,[ their lathers, and ar, present insurrection and and that they will not 1,.: either th© di ti .uil or EXECUMS Harrisburg, Jan. A Model Proclamation -It ginia Guerrili:i The Wheeling Inteliyq , r We are indebted t.• N.t., original copy of the .1 tion to the world's of a captain of a gii .g thieves in the Allt•J hang w.o.r found in the possus,iol, “E sons (familiarly known i < •• was wounded and cirtir-i • [. the Pendleton county line. der Lieutenant F A. t Virginia, who have hi en Rion with a view of "this 10.11 t : " I hear By Notify ail tarn u. to the dry fork Company theava and felt., di-tat usurped the power of t h e r:- Company and 1 all sow - to set toot of the soil of ,o , ! I Read White Blue alai 'BAIR name if nee( ssary at otl., • thear wepon and defend 11 i they at leading Enun.r ill O.! ..• Wee Neerl them the tfry and leav us to sta. d Bei . creants and herelinus of ti. , N.. trate thear dark deol on A I. comory wee will 011).Se means that the god of Bit lc power But not to di fende th. pitrate thear dark do, d: ‘,a l t: Blunt Now man come iu Control them ou •., from them in A Comm 1 d it wadgeous of sin is (1..u1i And 16e such is death. "Wadgeous" for wage' , ,t the variation "waticinus Batle can place in our power" i 4 depends on his ability to appears. If he should chance would'nt be near so wr II will , h era" as if he should have pi u~c very jealous of his authority the penalty of impertii,r•ot 14oti Slidell Sea-Sick—Maso n him with Brandy . The Boston Traveler tells Eli:- -1 , "We bear th it Mr. S.J , -11 - aick in the tug Starlight, %via, Princetown. Mason was entire'} f disorder, and upon hearluC of tlr his friend, sent him a tumbler which had a favoralae ffe.t. 10! Slidell expressed his heartfrit mat. than fen minutes after the four rt , sioners were received on board was under weigh, and praludly cape before the gale c onweLcol. to the eastward, and is pr-habl Halifax." %ruins the past three: southern cities have su.lerol tions to an extent wiihout PA give below the most disastrous dates of their occurrence' Dec. I2—Charleston, Dec, 17—Greenville, Dec. 22—Nashville, lenn Jan. I—Richmond, Total, Da English papers calculate o n 1„ of the French government re"" ton before Mr. Seward seudi Lyons in regard to the dern:itid c f t 1 government. The papers exprr, he the French despatch will reach Wail time to influence the reply of Mr. Tae London nitteS bas CFI tit zl tary Chase's financial rep.e, and length on the extraordinary t'N ; borrowing system, deel,lljllll ti.a I I anything in England's bittory. Pianos is about to send ran f,.re,, the squadron off .Ifexico, and also the off the north Western coast of Aerici. MEM