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By Master Elscly
Salisbury, Northumberland Co, Pa. Saturday, January 10, is. I a.
Vol. 11Xo. XVI.
ingly.
CjTMrtren hnc-s. mrvkc a s-junrsv,
TERMS OF THE AMERICA'
HENRY D. MA88ER,? PvsLieaiae ab
JOSEPH EISELT. JPaora isi-oaa.
JT. Jfc Editor.
MESSAGE.
th lfiMitl nepswa-e
srMftVc mw.esiwsltlB f PeMWsrlvwuta.
Fellow CiTisiKa: In performance of the
July enjoined on me by the Constitution, I pro
ceed to give you such information of Ok etate
cfthe Commonwealth, and to recommend to
your consideration such measures, as I think
xxpcdtenl, t the present time. The d ischarge
of this duly is, in many respect, beset with
difficulty, but this docs not absolve me from the
obligation created by my official station. In a
wpwit of perfect frankness, I shall submit to ynu,
the best dictates of my judgement, and shall
be happy if, in your wisdom and experience, you
can so modify and improve them as to promote
in a greater degree, the welfare of onr common
constituents, the people of this Commonwealth.
The subject ot the deepest interest, and
greatest perplexity, that calls for our attention
is, the financial condition of the State. Al
though I hare, on several former occasions,
entered into a full and minute exposition of this
matter, 1 cannot refrain from again presenting
it to your consideration, in a manner so distinct
and plain, as to preclude, I trust, the possibility
of misconception on the part of those who feel
an honest (let-ire to understand it I am per
auaded that however embarrassed may be the
pecuniary affairs of the Commonwealth, nothing
if needed to induce the people to provide means
to extricate them, but a clear and candid expo
sition of the nature and extent of the liabilities,
to w hich they are subject The time for con
cealment, evasion and deception on this point, is
at an end. -The contract has been made. The
faith of the State is pledged, and every con
sideration of duty and of lionc require of us, to
know our true condition, and to provide ade-
3uaU means to meet our obligations, and tore
eem nnr plighted faith.
There is due by this State, to the United
States, on account of depoaite of surplus reve
nue, the sum of 82 867,514 79. The funded
debt of the State, amounts to f 36,331,005 68.
This debt i reimbursable as follows :
f 270,031 87 in the year 1341
02.500 00 " 1844
3,516,508 t?l " " 1846
50 000 00 " " 1847
1,000,000 00 1850
2.000,000 00 1853
,1,000,000 00 " " 1854
2.783,161 00 " 1856
7,070,661 00 " " 1858
1,250,000 00 " M 1&59
2,648,680 00 - 1860
120,000 00 " " 1861
8,225.000 00 " " 1862
200,000 00 " 1863
2,515,000 00 " ' 1804
1.797110 00 " 1865
2524,000 00 " 168
1,957,362 00 " 1870
340,931 00 at expiration of certain
bank charters.
?36,331,005 68
This debt has been contracted for the fc!W
ing purposes :
Tor Canals and Railways, $30,006,013 68
To pay interest on public d.cbt, 3.304,303 00
For the use of the Treasury,
For Torn pi kef, Stale Roads,
Bridges, &c,
For the Uuion Canal,
For the Kastcrn Penitentiary,
For the Franklin Railroad,
For the Pa, and Ohio Cam!,
Total
The value of our public im
provement, estimated at
cost, is
Tho State owns bank stock
which cost, at par
The state owns Turnpike
and Bridge stock.
The State owns Canal and
Navigation stock,
The Slate owns Railroad
stock.
Money due on unpatented
lands, estimated at
1,571,660, 00
930,000 00
200,000 00
120,000 00
100.000 P0
50,000 00
830,331,005 68
829,292,105 33
2,108 700 00
2,843,048 86
831,778 CO
850,546 99
1000.000 00
Total, $30,426,239 78
The immediate difficulty of our situation, a
riaes mainly from the payment of the interest
annually accruing on this debt The interest
is about 11,800,000; and this sum, it is incum
bent on the State to provide as it becomes due.
The inconsiderable portion of the funded debt,
now redeemable, can bo doubtless, postponed
until luort auspicious times, but the interest
admits of no such postponement This is in a
S'rcat measure payable to those who cannot af
ord to procrastinate its reception, and whose
means of subsistence depend, on the faithful
adherence of the State, 10 its solemn engage
ments with its loan holders. The income es
pecially appropriated to the payment of this
interest, is derived from the following sources,
to wit : -tolls on canals and railways, auction
duties, tax on collaleial inheritances, dividends
on turnpike, bridgu and navigation stocks, es
cheat and tho tax levied on real and personal
property ic.
The amount received from each of these
several sources, during the last fiscal year,
ending 30th November last, is as follows :
f rom tolls on Canals aim ivau
way. Auction duties,
Collateral inheritance,
" Dividends on turnpike,
bridge and navigation
Blocks,
Escheats,
H Tax on real and personal
property, AVc.
1(762,360 41
77.022 15
21,591 43
30,355 72
XiO 64
33,292 77
Total, f924.959 15
The sum in the treasury, applicable to this
nhinet onihe firstday ol this month, uulepen
A..ut nf what will be received during the month
waa 1, 020, WW 38, king 124,042 62 more
than ia necctwary to pay the interest due on the
firnt of February next.
In relation to the assessment and collection
ofthe state taxes, under the net of the 11th
I..... IU0. the rrcateet delinquency is found
.. ..i. ii. Mimtv commissioners. Noreturnor
tutemenl has been received from several of
the count ieu, aYlhougn required by the 6th sec
tion of the said act, to be transmitted to the
Auditor General on or before the first Monday
ofSeptembcr, in each year. It is, therefore,
out ot my power to inform you of the amount
assessed under said net Fiom the information,
nowever, received, I tcel warranted in saying
that it will amount to about half a million, or
within a fraction of it That amount will be
considerably increased by the valuation and
assessment provided by the "act to establish a
tinitorm mode for the valuation of property and
assessment of taxes," passed 15th May, last;
the returns of which are required to be made to
the Auditor General within the present month,
and will be laid before you as soon as received.
The duty of the county commissioners to
make returns of the assessment, Vc, to the
Auditor General, imposed by law, seems not to
be designated and enforced with sufficient pre
cision and certainty. To secure its faithful
performance, I recommend a revision of tho
law.
During the existing state of things, the con
tinuance of taxes assessed, for the payment of
this interest or at least of taxes of some kind
for this purpose, appears to be indespcnsable.
If the distribution of the objects of taxation or
the mode of levying and collecting the tax be
unfair, or onerous, undoubtedly the evil should
be promptly corrected.
I have heretofore declared my determination
to do all that belongs to this department to meet
faithfully the engagements nf the 6tate, and to
maintain unsullied, the credit and fidelity ol
our Commonwealth. My sentiment in rela
tion to these matters have undergone no chance,
and lam pleased to find Unit on tlii9 subject,
there is no diversity of opinion among the
great mass of the citizens of the state. All
atrree that, whenever the constituted authori
ties of the Commonwealth, have entered into
engagements conformably to the constitution
and laws, whether these engagements have
been characterized by due prudence and a
proper regard to the interests of the public, or
not, the honor of the state, the permanence of
our republican institutions, and a sacred regard
to the sanctity of public engagements, require
that the resources of the Coniinonwealth, and
the energies of Iter citizens, be put in requisi
tion, to meet her public engagements promptly,
punctually, and unhesitatingly.Jt is therefore,
respectfully and earnestly urceu upon the le
gisiuture, to take tlie necessary steps, at the
earliest possible day, to ensure this desirable
result
A the most efficient means that have oc
curred to my numl, I wonld suggest the fol
lowing course, I.ct the legislature ascertain
from tlie financial departments, both the ordi
nary revenue, and Vne amount necessary to be
raised annually for tho payment of the interest
on the staf. debt, and the ordinary expenses
of government Let provision also be made to
Cover all rtniiihle rnntincr-nripa and losses nn
i . i r.
1 Colloc'uon. Add to this a sum, though ever so
small, tor a sinking fund, to be applied annu
ally to the extinguishment of the principal of
the public debt and apportion it among the
several counties of the Commonwealth, desig
naling tho amount to be paid bv each, by an u
niform apportionment according to the triennial
or last assessments, with such corrections and
equalization as shall be found necessary, and
on the same objects now taxable, or any others
that the legislature may think preferable.
Let adequate and certain penalties be imposed
on each county commissioner tor omitting to
have the duplicates issued in time, and on each
assessor for the non-performance of his duties,
and allow the county such a premium, as shall
be thought right if its full quota be paid into
tlie I reasurv, on or before the dav required by
law. It is believed that a committee of the
legislature would be as competent a board as
could be raised, to apportion the quotas of the
several counties, as above mentioned, aided, as
they will be, by the late assessments and cen
sus The establishment of this system by law,
would place the fund to meet the interest on
the public debt, on a permanent foundation,
and silence forever all doubts which interested
speculators might seek to raise on this subject
But it is not only to the loan holders of the
Commonwealth, that she ought to be just in
meeting her engagements. A regard loccuno
my, as well as justice, to the men who labor
upon the repairs ot our canals and rail rjada,
requires thut they should be punctually paid,
I he laborer is worthy ot his hire, and is as me
ritorioiiH a cieditor as the Commonwealth has,
and it is absolutely disreputable that he should
be dependant on the borrowing of money for
his pav.anu be unuble, at times, tor months u
gether, to procure as much for his labor as will
buy li mi a loaf ol bread. It is respectfully sup
gtsted, that when abundant means from taxa
lion are provided to meet the interest of the
tlnte debt, that the tolls on our public works
shall be first applied to their repairs, so that we
may know, at a glance, to what the nett rven-
ue, it any, arising from the in respectively
amounts
It is not to be disguised that we are deeply
in debt ; and that tlie times call for an unnuail-
ing fearlessness in our public functionaries, to
meet the emergency, and to provide the means
for our extrication The neoule arc already
burdened with taxation, and those burdens can
not be diminished, if we expect to pay our
debts. The conduct and motives of those who
make provision to pay them, may be misrepre
sented, and for a time misunderstood. Preju
dice, from the sordid feelings of interest may
be invoked and demagogues and unprincipled
politicians will, doubtless attempt to use it, to
answer their own purposes. Hut the responsi
bility is one which every h meet public function
ary must meet fairly and frankly, and in so do
ing he will be eventually sustained by the peo
ple at large, who never deliberately err, and
who always will reward, with their confidence,
an honest and fearless devotion to their true in
terests, even though it may, at first, have met
with temporary disapprobation.
The mean to pay off' the loan umler the act
of 4th May, 141 to pay the foregoing credit
ore of the state, and the interest on the public
debt, muit be provided before the Legislature
adjourn. Sound policy, way common Tionerty,
demands thin much at vour bands, and I am
pemmded r.o member of the Legislature nl
shrink from a duty enjoined by such considera
tions as these.
It will be found on reference to the amount
of taxes paid by the people, that comparatively
a small portion is levied to discharge the inter
ettlon the public debt Although in the aggre
gate the taxes are onerous, by far the greater
amount is absorbed in the ordinary purposes of
township, city and county affaire. I take great
pleasure in stating the tact, that the increase
of the taxes for the maintenance of the faith and
honor of the state, has been regarded tn a t pirit
of patriotic duty by the public at large, and has
been borne without repining, unless, indeed,
we except a very few persons, residing in por
tions of the state which have reaped almost the
entire benefit of the expenditure of the vast
sums ot money, for the payment of intercut on
which these taxes are imposed. I felt satis
fied when I recommended, early in my official
career, the resort to taxation, mxtead ot addi
tional loans, to pay the interest annually accru
ing, that the enlightened yeomanry of Pennsyl
vania would, under the circumstances, sanction
the recommendation. I am now convinced 1
did not mistake their true character: nor can
the extraordinary conduct of some persons, pro
fessing better principles, who first urged the
adoption ot the measure, and afterwards de
nounced those who acquiesced in it, shake for
a moment my steadfast conviction on this sub
ject I always believed the people would do
their duty, Jet it cost what it might ; the first
instance is vet to he found in our history when
they have flinched from it, ifrightly understood.
i ne unprcceoeniea increase of our popula
tion and resources, cannot fail, in a tew years
to render our improvements so productive as to
supercede the nec-raity for taxation. The ul
timate value ol onr stupendous system of public
works can hardly now be estimated. J hev
have already added an incalculable amount of
value to the property of the citixena of the
Commonwealth, and given an earnest of their
capacity tor to tore usefulness. J he travel and
transportation upon them must increase in full
proportion with the multiplication of our popu-
laiiPii, and the dcvelopemcntof our cxhaustles
resources. hen it ia recollected that the
ponulation of this State in the year 1800, was
only 602,545 ; that in 1820. it was 1,049,313;
and in 184, it was 1,724,033; t-houing an in
crease within the last twenty years, exceeding
the whole population in the year 1800; and
when it is remembered that this immense and
increasing population has imparted, and is im
parting its intellect, energy and industry to 'he
improvements ol the agricultural, mining,
manufacturing and commercial interests of the
Commonwealth ; and that during tlie past year,
when trade and business were greatly depress
ed ; when the Delaware division waa not in
use until about the 1st of August; and when
the important anthracite coal trade from the
Wvoming, bhamokin and ISear valleys, and
other intermediate points to tide ; and the bitu
minous coal trade from the Allegheny moun
tain, on the West Branch, and Juniata region,
to tide; have been barely CMnmenced, the re
ceipts of toll amounted to the aunt of $762,
260,44, it will be difficult to form a just esti
mate of the extent of their future usefulness and
extented receipts.
These internal improvements, for the con
struction of which the principal amount of the
State debt has been incurred, consists ot tPi
miles of canal and railways completed, and
165 miles of canal in progress of construction
and nearly completed.
The finished works are the following :
The Delaware canal, from lOaston to tide
at Bristol
The main line of canal and railway from
Philadelphia to Pittsburg,
Canal from Beaver on the Ohio river to
Greenville, in the direction of Erie,
Canal from Franklin on the Allegheny
river to lonneaut lake.
Canal, Susquehanna and North Branch
from Duncan 8 Island to Iackawanna
Canal, West Branch from Northumbrlaud
to rarrandsville,
Several side cuts and navigable feeders,
miles
50J
395J
72j
49
11H
73
7
Total canals and railways completed.
Canals in progress and nearly completed:
North Branch extension, from I-acka-
wanna to New York line.
Erie extansion, from Greenville to Erie
harbor.
Wisconisco canal, from Duncan's Island
to ll'iconisco creek,
Tclal canals in progress,
768i
The report of the canal commissioners, with
the accompanying documents, which will short
ly be laid before you, will show in detail, the
state and condition of our public improvements.
Having in former communications to the legis
lature, stated my views in relation to our sys
tem of internal improvements, I beg leave, re
spectively, to refer you to them, aa being nn-
climgeu, wimoni winning unnecessarily 10 ex
tend this communication, by embodying them
in it
Hlien I first entered upon the duties of the
executive department, the question of comple
ting the North Branch and Erie extensions wus
submitted to the action of the legislature. The
representatives ofthe people decided in favor of
completing both, and have by three subsequent
acts, appropriated considerable sums or money
for that purpose. The North Branch canal has
already riM f2.3l',276 38, of which the sum
ofiJt:v-i9,676, 42 remains yet Hue to contractors.
The Erie extension has already cost about 2,
919,507, of which the sum of $574,406 28, is yrt
due to contractors. The grave question is now
presented to your serious consid -ration, wheth
er, under all the circumstances, thoae two lines
are to be forthwith finished, or abandoned for
all time to come, and the entire amount of labor
and money expended upon them thrown away.
Contractors who have gone on to the work, and
perhaps executed the least profitable part of it
will have fuir claims on the justice of the legis
lature for remuneration, for the losses they have
sustained by en abandonment of the work by
the commonwealth. Judgaing from the sue
ceea which u-nally erwn perseverence, in
similar applications, btfera the legislature,
there can be little doubt that this class of claim
ants will not so away unanaW'crcd and unsat
isfied. The farmer whose lands have been cut
up and destroyed will also be a just claimant
for compensation for the injury he has sustain
ed, for which the advantages from the proposed
canal will not be An available set off; and it
may be well to enquire whether the amount of
those claims would not go far towards the com
pletion of those branches of our improvements.
The only valid objecti n to a pioeciitioii of
these works to completion, is the difficulty to be
apprehended in raising the necessary funds for
tho purpose. The rstimnted cost to complete
the Erie extension is $530,142 46, and tho
North Branch $1,298,416, independent of the
arrearages due to contrnctors, as before stated,
which must be paid at nil events. More confi
dence can be placed in tho accuracy ot these
estimates ot the cost of completing these works,
than could be extentrd to tho.se made in the
earlier stages of our public improvement", from
the increased practical experience of those in
trusted with the duty of making them. My
own opinion remains unchanged, that it is our
true policy to go on and complete both these
works with as little delay as possible. This,
however, is a qurstion exclusively for your de
cision. For the debts now due to contractor on thrae
linra, aa well aa for ii pairs on the other lines, ten
dered indiarnsalle, and without which many por
tions of our conats wnu'd have bten umailhle
and usrleaa throughout the sea n. I reprc:fu1ly
urge that aome prompt and immediate rotiioi.e
be mai'e. Many of the contractors have laid out
of tl eir mottry for a long lime, and have suffered
rrioua injurira .y the delay. If no better expe
dient can e dmi'ed.I would terommend the imme
diate ia uintt of a m per rent. tork to all aurh
rrrditoia, redeemable a such lin.e a shall be thought
meat expedient.
The amount required to pay ilehta due fur re
paira on tlie retreral lim-a of cat al and railroad, it
will l-e obairtrd by lle report of the Canal Coin
miniiner, is unu.uully latRe. Thia ia to be as
cribed to the Ulpmtic tiled lit each whlrh recurred
in the Ui la ware P vi-n-n, in January laM, which
cost at iut f 150,000; to I lie renewal rf the North
tr.irk of the Columbia rail road; to I lis tetuiMing,
in a permanent manlier, the lorka, bridee and a
uueducie n neveral nf the di'iiion, and particu
larly on the North Br inch, where the original au
poMruclur. f, rompi'eed entirety of wood, had ao
far de. a) ed aa to leave no other alternative, than
eiiht r in ri new them throughout, or abandon the
navigation entirely. It ia also, in art, to be ascri
bed lo the fact, that onl a portion of the furda ap
proptiated by the act of the 4th of May laat, fur te
paita, and to pay debts than due, became available;
leaving a large balance ofthe appropriationa to there
oljtcla, therein author. J, s ill due to the public
ricdilora.
There if alwaye, een under the moat economi
cal adminittratione of affairs, a greater amount of
expeme incurred in managing ami keeping in re
pair great public improvements for lh Common
wealth, thi.n it would rout if they were io the hand
of individuals. It in, therefore, respectfully aURges
trd for the consideration of the Legislature, whether
the public intercut would not I prnmnteJ, and llie
amount nf the 8tate debt considerably lisscned, by
a asle of the ranala snd railroude belonging to the
Commontra th, or at leaat, a portion of them, or
such other ditpotitton aa w..uld diminish their an
nual expenses to the Commonwealth, and incteaae
the amount of revenue from them.
Were the Commonwealth free from debt, I
should hesitate to recommend ihe sale of any of
her public improvements. But oppressed aa she
is, the cost which the repaira require, and the ne
cessity of relieving ouraelvia as far as possible, in
duce me lo urge action on this subject, at lesat so
far as regards the I'olumliia railroad, snd the Dela
ware division of the Pennsylvania canal. It will
matter but little to thoae interested in the use ofthe
improvements, whether they are in ihe bands of the
public or of individual', provided pioper aafrgaarda
are enacted lo protect the public in the free li e and
enjoyment of them, and to guard against abusea
ami eiactiona.
If it tie objected thM aalea cannot be effected in
the present state of our pecun ary embarrassments,
that will be no reason why a law ahould hot now le
enacted authorizing the aale of such portions of
them aa ahatt be deemed proper, subject to the ap
probation of the lgt la'ure on the aale being re
ported. If sold, even on an extended credit, if the
princ pil be serured, and the interest punctually
paid, il will ao far iclieve the Commonwealth. If
it w. re made a condition that State stock should
be received in payment, it would probably make
the sale moie advantageous to the Commonweal h.
The dixpos'tione of eapitelii-t would thus be made
known, and it can, at least, he ascertained Whether
a ssle al an adequate price can be erb-rled. The
olicy of has ng for a term of years, one or both of
those improvements, has been more than 'once sug
gested. Ot the propriety of ao doing, 1 am not pre
pared to expresa a decided opinion, but have ih lught
it worthy of a suggestion fur jour eonsidcrtlion.
That the public Worka.houlJ be unproductive, is
owing in a geat measure to a want of proper le
gislation on ihe subject, and unless this he remedied,
it must impair iiuhlie confidence in their ultimate
utility. The ('anal Commissioners hve repeated
ly urged upon the leg slutuie the propriety of al
lowing Ihe Commonwealth, alone, lo carry the ps-
sensera on the C'ohinih'a rai !. No raihoail in
the United S'a'e. could sustain itself, rf it were to '
trolled, and now conlro's the tranqt rle ion on out
publ c works.
Ii may poasihly be suppoaed that the Canal Com
miaiionera possess adequate power nhe dy fir this
purpose, but line is to mistake the cine. From the
na lire of that I'enaitmeiit of the e ivetntnent, It i
alwava mnde the tuigrt nt which thr d soonlentid
and interested point their abatts. Not n season nf
the hairlalure iiass w ithout harrassing the com
mii-aioiicre with iiivealig iti ir.e, the whole state ia
r.nsnckrd foi eccu eim ev ry act questioned
and mismireseii et. and afb r all, ll.e re-ult is fruit.
less. Tlie fi st instance i yet to be found, in
whluh anv thins Innaible h.ia b. en produced, or a-
ny saluia'rv reform of the ey-tero rlfoclefl. Were
the leei-Uture to devote one session to an honest
and Ihomuuh examination snd correction ofthe a-
buses snd defects of Ihe system, without a.noyiiif
and (Uiauing individuals for sinister end, not o
peiily avowed, much good would be produce d ; Inn
nnilpr snv oilier mode of treaiino this subject, the
i'sue must be aa idle and frivolous aa heretofore,
I do not wish to preclude Ihe moat aea ching in-
ve tirsiion. I merelv desi.e to direct your atten
tion in a channel that will be beneficial to the -ub
lie.
Onr of the gr. atcst evila of these frequent and
frivol ua invistictti .us, is lint tliey i-rine legist-
live investiest ons themevea into discredit. The
persecution of the innocent, alwaya furnishes
aliield to ihe gtnl y.
It ia now. thiouuhmit the country, a matter o
idle aoort to talk of theae invcatintitiona. The mode
by which ihey are brought about ia well understood.
A few diaslisfled contractors, snd others, impore
on ihe credulity and st mulute the anibition of sorne
number of the legielatnre to offer a petition, com
plsining of public gtievancea. A committee lo in-vei-tiga
e ia appointed, aubprcnaa are issued, an. I
straightway, swarms of hungry confederates throng
the seat of government, to prosecute their claims
hi fore the legislature, lo lounge at the'public ex
pense, and join in a wholcaile pillage ofthe treasu
ry. At the close of the session the committee ic
ports, the witnesses return to their homra, and
l-ugh at the trick, as they pocket the spoils. Hy
n ferencn to llu aubject, it will be found that a
large portion erf the legislative exj.enaea ia Incurred
in thia way. The extraordinary inerense of these
expensea, oer thoae of all otlur departments ofthe
government, has been ol late years a matter ol jun
complaint,
Ii becomes my duty, in the next piece, to invite
y ui earnest attention to lire pre sent condition of
ihe banks, and currency or tins state, it is a moi
lamentable fact, that, in relation to this subject, the
fires I est irregulurity and disorder prevail. It is true,
we have little, if any. of that wnU'fred illvgil trash
in circulation, which, durisg the early pail of the
laal six years, infested all aeetiona of tho Common
wealth, in the forjis of notes, checka, certificates,
tec. Ate, of corporations and individuate, for small
Mima, put forth withdCt lawful authority, kyl in
spite i f the ptohibitiona of law : but we have, what
ia little better, a large amount of not- a in circutinn,
ostensibly legal, and purporting to be of equil val
ue, because founded on the faith of the state, by
whatever bank iaued, and Jet, notwithstanding
thia fact, discredited and "repudiated by the very in
stitutions Tor whoae benefit and ivlief they wete.
thorized to be lasued.
The act of the last session entitled, "an act to
provide reveuue to meet the demande on the trea
aury, and for other purpose," under the provisions
of which, these small hotrs have been thrown into
circulation, having become a law by the aanction
of two-thirds of the legislature, according to the
fnna of Ihe Conatitution, notwithstanding the ob
jectione ofthe Executive, I have exerted myself to
the utmost, to see its provisions properry carried in
to t ffect. Thia waa my duty as the Executive, and
I hate faithfully performed it, agreeably lo the beet
dictates of my judgment. I did hope that some of
the evila whicn have resulted from it, might have
been obvited, if it wa enforced by me, and acted
upon in a spirit of enlarged wisdom, by the banks
thr msclvce. This hope has been vain. The woM
anticipations have been realized, and il is my duly
to augao-t such a remedy, aa appears to me, to be
beat calculated to cornet the critvancer, under
which the public labors.
By th'a act a loan of three milliona one hundred
thouaand dollars waa authorized, to ay s; ec.lic a
propiiationa nude hy the said act, and the several
banks of the Commonwealth, subject lo the pay
ment af a tax on their dividcnJa, were authorized to
subscribe fur the aamc, in certain prnporliuiia to ihe
capital stock of each.
The whole amount of bankin; capi
tal in the Commonwealth ia, $C3 519,3
I) inking capital nol subject to a tat
on dividends. 4,150.000
Banking rSpitsI eubiect to the pay
nient ofa tax on dividenda, $18,409,371
Of ihe banking capital aubject to the payment
ofa tax nn dividends, banka holding to the amount
Of $10 82S.I4S, diJ not accept of the proviiona of
the acl of 4ih May lo piovide revenue, and nence
Ihe ciipitel nf the banks which did accept of the
nrutisiona of the ajid act, amounted only to the
sum of $7,673,529.
The whole amount of the loan taken by the ac
eepline banks snl psil into the treasury i fl.'Sfl,
fi50 68. leav ng the sum of $1,343,349 32, which
hss not been received.
On the 30 Tl .Vusut, 1841. ! accepted an offer
of the Towanda Hank, to eubseribe for an addition
al sum of one hundred thousand dollars of tlie a.iiJ
loan, and i n the asme day I accepted an offer of
the E is Uank, to subscribe f .r an additional aum
of three hundred and fifty thousand dollars.
Ol theae off rs the sta'e tressurcr agreed lo ac-
cent fmm the Eiie ltat k. the sum of iw.nty ne
relinquish the carrying ot the paa.engers, yet, on j ,hou,d d,,ilri, nd from ihe Towauda Hank tlie
sum of thirU-reven thou.anJ five hundred dollar..
I Thia bank did not accede 10 the propoaiiion to ac
t ct pt a pari of the aum offered, hence no part of the
him. lie, I thousand ilol srs ws ricturu o, m
that road this strange condition of things ia exhiU
led. The Hitie hss expended in its construction
over four milliona of dollsrs, while the capital em
ployed hy those earn ing ihe passengers, is perhaps
thirty thouaand dollats. The Slate on her Im
mense ou lay, ia reaping about 3 per cent., while
the individual Carriers on their thirty thousand dsl
lars, are clearing nearly SOU per rent. Ho il is, al
so, with regard to thr transportation between Phila
ladelphia and I'illaburg, That line of our improve
ment, between lb .se cities, wuf eie'rueted at a
coat nf a fraction over fourteen millions of dollars.
The transHsrlaion on it is monopol zed by some
aeven or eight eompnes, employing a capital of
leas than four hundred thousand dollars ; yrt, wh le
the State is receiving little more Ibsn will keep it
in repsir, Ihe transporters sre resizing immtnss
profits, ard thai, loo, ou a cumpsratnely smell out
This esn only be remttlied by vestii g the ( snsl
Commissioners with full and ample authority in a
dopl such nies-urrs, as in their judgment will be
I e.l calculated to rw ist individual ent. rprze, snd
itiaire competition, anJ to ejunterart the effects of
Iba srlfi'h and munopt'liiii $ Tttrir, that hss run
one
Ireasurv
Thua il acinar a my large portion oi
.i.. i... Li., ...,.ii.i uhi.-rt In tl e oiteralion of tbia
bill, h .a taken no pail of Ihe loan at all, and e .n,
ol eours. have no clauit in imlu'getice unJr this
law. rUne banks Which have Complied, aland in
different position H eir loan luuat be rep.ii I le
forc they can te foxed to resume. It is aw inqui
ry of much moment, wheilur the In i, Its tbal have
not complied with llie requisitions of the law, ughl
not "o l-e ili pr ved of the advanlag a nrising llom
the use of ihe i ota i-sued by hose that did.
Afier the moat patient reflection on this sub
ject, 1 itn persuaded that the only effectual and
certain retnidy ia to repeal tne act fo faraa
relulea to the issue of tWo noles, and to pro
vide adequate meana to discharge the loan on
which they are based. I o pay this losp, a six
per cs-nt stock might be authonxed to ha thrown
it.tr. market, to Mi fNr whatever it wtU pmdtrce.
ShiViri titer b.' a smiU Vaa up"n it. 1 am eure
il will ho deemed a very iricotiRiderub'c mat
ter, compared with the inconvenience the peo
ple sillier from the present etnte of things J o
remedy this, a sacrifice, to some extent, is in
evitable.
Connected with'llio rpra! oftluskw, should
be the enforcement of specie pi yinnn'.s hy the
banks. An enrly tiny should he fixed for Una
event, nt least as curly as the first of June.
Tlie time, however, is not so material, w liether
it be a few months sinner or later, so time a
certain definite find rousotiable time be fixed.
Your action on this point, cannot lie too prorrpt
frr the public inti.Tcst. The community lma
been long enough held in suspense ltt the fi
nal issue be nt once presented, and it is to bo
hoped the people and the banks will be fro
pared for it when it arrives.
Those banks which are in a eouwl condition,
will conform to the requisitions of the legisla
ture, without much embarrassment j and thoso
which are not, w ill -tlius be brought to the
tnucl'Htonc of their merits. The firnt will sus
tain themselves, the latter must take their
futc. As soon as the produce of the country
lias found its way to market in the spring, the
people will be as able as at any other period, to
endure whatever hardship results Irom this
measure. I do not myself believe, 'that my in
convenience which cttn arife from it, will bo
orcater, nor any thing like so protracted, aa
those which are felt by all clusses now.
It seems to mo it woulJ be far belter, to
bring matters to a crsis at once, thanio suiter
under the s.lov,but death-like torpor that has
already seteed upon all. A very few may,
possibly.full victims a little fo ner, who could
not escape in the end, but the community at
large will ultimately experience effectual re
lief; Let rashness, violence and injustice bo
strenuously avoided, hut no vain hopes, or emp
ty theories should prevent tt'cool, culm contem
plation of our duty, and a 'linn und unshaken
discharge of it, without turning to the right
hand or to the left. A suspension of specie
payments is at variance with every principle
ol correct banking.
The forbearance hitherto extended to tha
banks has not been without its uses. It has
enabled the banks to test their alleged ability,
and to extricate themselves Irwi their difficul
ties, and has added much to tire atoclt of our
experience. It has clettrty demonstrated, that
if the banks could not regtm public confidence,
under the im ulgence they huve received, the
system on which they arc founded is essen
tially unsound, and requires thorough amend
ment or extirpation. We have witnessed, too,
under its influence the tnost fxtraordinnry
changes take pluce, without any sudden or gen
eral convulsion. A bank of thirty-five millions
capital has exploded and gone down in tho
midst of u, "comprehending within its sphero
of business, the most extensive relatione, both
with individuals and with other banks, without
making more thin limited portions of t'.io
Commonwealth feel the blow with oppressive
weight ljoking, therefore, at all these con-.
siderations, the indulgence iierctolore given
to the bunks, furnishes the strongest reason m
favor of the course I suggest, and lully justi
fies its adoption.
I 'have recommended to tnrcc several io
gislaturps the propriety of selling the stock
which the Mate owns in tne tsann oi i-cnn-
sylvanta, tne rtiitaneiptiia r-anK, anu me r ar
incio and Mechanics' isanit, at uscu every ar
gument that 1 could bring to bear upon tne
subject, to convince them of tho propriety of
seporating the Common wen un troin tne banics,
and of disposing ofthe stockshe holds in them.
I recommended it in a message, communicaieu
on the 7th March, 139, on which day the mar
ket price of the said stocks were, tor the Bank
of Pennsylvania, $196 for ?400 paid ; rhilndel
phiaBaiiK fllJ for f 100 paid, and the Far
titers' and Mechanics' Bank $02 for 50 paid.
The same recommendation was sgain made
on the 9th Jan. 110, at which time the follow
ing was the price of said stocks for Bank of
Pennsylvania 410 ; Philadelphia Bank f 99J ;
Fanners' and Mechanics.' Bank fMJ. A simi
lnr recommendation was made fith January
13-11, on which dy the following sales were
matin, viz : for Bank of Pennsylvania M12;
Philadelphia B-ink 100; Farmer's and Me
chanics' bunk b'li, making the taid stocks,
held by the Coniinonwealth, worth f 2,157,070,
By the last sales made during the present
month, the market value of those stocks are,
tor llank of Pennsylvania f 100 ; Philadelphia
Bank Farmers' and Mechanics' Bank
tZO; making the present total worth oflhoso
stocks $002,121; by which it i seen that by
the course pursued by the last legislature, in
refusing to authorize a Bale, the loss sustained
bv the .State, on those stocks, amounts to tno
formulate sum of f 1.255 510. I renew tho
same recomnientlat ion to you, for the reason
given, from lime to time, in my several com
munications on that subject.
Before I dismiss tho subject toucmng tnfl
banks, I desire to call your attention to the pol
icy of rechartering banks, by the legislature,
during tho present session, at all. When a
charter for a bank has beon granted to a num
ber of individuals), for a fixed period of time,
there no express or implied ohl gation to renew
it. On the contrary, the very limitation ehows
that its existence is to bo terminated at the time
designated. Its stockholders know this, and
cannot complain if held to thoir bargain. The
condition t f banks never is known till they are
wound up and closed. Their mode of doing
business, enables them to defy public scrutiny,
and to acquir a credit and standing to which
they may not be justly entitled. Frauds and
irregularities of years perpetration, are con
cealed from the eye of the public, till a finil
settlement ofthe concerns of the bank is made.
Little knots of persons confederate and gather
round theso institutions reap the benefit of
their existence monopolize their advantages,
and perpetuate their power. We seldom find
among them the energy, intellect and entepriso
of tho commnnity, but those who derive their
consequcrfe from iheir combinations sanction
ed anu in vip orated by the law. I cannot think
such a sye-tcm as this of porpetutting these cor
pisratioirs, congenial to our free institutions,
it t'ttahiishe monopolies of the most odious
kind, bccutiae pot )m'tf-4 in duration. If thai
!.oint.s ol the continuity really requires tv.