GOYEB.YOS'S MESSAGE.
To ic Senate and House of Representative's of
the Commonwealth of Pennsylvania,
Fellow Citizens : In performance of the
duty enjoined on me by the ConstTtutmn,4i?pro-
ceod to give you such information of tKe state of
the Commonwealth, and to recommend to your
consideration such measures, as I think expedi
ent, at the present time. The discharge of
culty, but tins does not absolve mo from the ob
ligations created by my official staiion. In a
spirit of perfect frankness. I shall submitto you,
the best dictates of my judgment, and "shall be
happy if, in your wisdom and experience, you
can so modify and improve them as to promote
in a. greater dejjreeewejfare ofourcommon .
constituentsn'hepcop
The subject, of dcVpeslntercst, and greatest
psrplexity.that calls for our attention, is the fi
nancial condition -of the Slate. Although I
haveon"several former occasions, entered into
a full anlrf minute exposition of this matter, I
cannot refrain from again presenting it to your
consideration, in a mannero distinct and plain,
as to preclude, I trust, the possibility ofmiscon
ception. on the part of those who feel au. hones' t
desire ip understand it. I am persuaded that
hriwever embarrassed may be the pecuniary af
fairs of the Commonwealth, nothing is needed
to induce the. people to provide means to extri
cate them, but a clear and candid exposition of
the nature and extent of the liabilities, to which
ihoy are subject. . The time for concealment,
evasion . and deception . on. this' point, is at an
end. The contract has been made. The faith
ofthe3?tate is pledged, and every consideration
of duty and of houor require of us, to know our
true condition, arid to; provide adequate means
to ; meet ourf obligations, -and .to rodeem our
plighted faith. .
.ThM-e is due by this State, to the United
StStes, Tin account of deposite of surplus reve
nue, the sum of $2,667,511 78 The funded
debt oT the- State, amounts to 36.331,005 GS.
This debt is reimbursable as follows :
$270,081 87 in the year
. 02,500- 00
1841
ISM
18JG
1847
1850
1853
1851
185G
1S53
1859
1SG0
1SG1
1SG2
1SG3
1SG1
1SG5
18GS
1S70
3,510,563, 81
50,000 00
a 1,000,000 00
ti
lt it
it
i.
2,000,000 00
'3.000.000 00
?.7S3,1G1 00
',070,6Gr 00
1.250,000 00
2,GtS,GS0 00
120,000 00
3,225,000 00
' 200,000 00
2,515,000 Q0
$1,797,010 00
1,2.524,000 00
1,957.202 00
'310,981 00
t. 4.
It
(( c
It
11
i
at- the expiration of
certam bank chara
ters. Total $30,331,005 G8
This debt has been contracted' for the follow
ing purposos : - 1
For canals and railways, $30,055,013 GS
To pay interest on public debt. . 3.301,303 00
For the use of Treasury, t
1,-571,GS9 00
i or turnpikes, State roads, bridg
es, &c.,
For the'Union Canal. 7
For the .Eastern Penitentiary, !
For the-Frariklin Raifroad,"
For the Pennsylvania and Ohio- -Carfal,
:
930,000 00
200,000 00
120,000 00
100,000' 00
50,000 00
Thtal
-
$30,331,005 G8
The value ofrourinubliaimprove-n
. merits, eslimated at'cost,1s, $29,292,105 33
The S,tate owns bank stock which
: cost, at par ' 1 2,108,700 00
The State owns turnpike 'and
i bridge stock, 4 ' 2,813,018 69
,3lhe -State tSwnsccanal andnav-
ightion stock, u 831,778 GO
The State ownsrailroad stock, 350,510 90
alanev duekon unpatented lands, r
bsiimsted.at ;. V ,1,000,00000
'" Tbtal, J ' $30,420,239 78
The immediaie difficulty of our situation,
arises mairAy from the payment of the interest
annually accruing on this debt. This interest
is about $I',SD0,000; 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 be, doubtless, postponed
until more auspiciousMlmesbut the interest ad
mits of no such postponement. This isin a
great .measure payable to those who cannot af
ford to .procrastinate its reception, and whose
means of subsistence depend, on the faithful ad
hdrence of ihe Estate, to its solemn engagements
.with its loan holders. The income especially
appropriated to the payment of this interest, is
fem'&& frm the following sources, to wit: tolls
,4in etfals ami railways, auction duties, lax on
OttUaisaxal inheritances, dividens -on turnpike,
bndgeV-htd navigation stocks, escheats and the
tax levied en real and personal property, &c.
The amount . received from each of these sev
oral4euTee, during the last fiscal yeavending
.30th KovBEsbfCt last, js as follows:
From tolls canals and railways, $7G2,3G0 41
" Auction dtsties,! . 77,022 15
Collateral itihejitances, ' 21,59143
Dividends onturnpike, bridge
and navigalioimacks, - 30,355 72
l?.M(nti-L : -4iifi- 33G G4
" Tax on real and-wssonal pro-
33,202 77
T6lal -$924 ,5D 15
- The suih in the treasury.1 op-plicrfbto lo tills
con the first dny of this :rjonthfepcnd.
m 9t what will be -received dunnt tJ;ntotiUi,
-a $1,026,936 38, being 'Sl24f0lS to mow
Tihanis necessary to pay the interest dug on tne
iirof February, next.
'r In relation to the assessment and collection
of the Stale taxes, under tho actofthe lllh
June, 1840, the greatest delinquency is found
t'vfftii the -county commissioners. No return or
Element has been received from sverai of the
counties,. although required by the Gill section
nf the said act, to be transmitted to the Auditor
General. iOiivOf before the first Monday ofSep-
joining inach v.eaf . It is, therefore, out of my
' nmver :tp inform you of the amount assessed un
"fer said act". "From the information, however,
received, I feel warranted in saying that it will
amount to aboxtrhtdf -aTnillionror-within a frac
Iflon oP1t-lshat; - amount .-wyU bc considerably
iacroasod bthev41uation.and assessmentspro.
vided by the "Act to establish a uniform modo
ior Uic valuaUon of property and assessment ot
, c
-. 1 - '
a- n
t t
it
j m
m ts
t
i! k
it f r
' t r-
taxes," passed 15th iMay, 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. , "
Tjlie duty of the county Coinmissionersto
make' returns of the assessments, &c. lo the Au
ditor General, imposed by law, seems not to be
designated and enforced with sufficient preci
sion and certainty. To secure its faithful per
formance, J recommends revision1 of ;the law.
During the existing state of -things, the con
tinuance of taxes assessed, for the payment of
this interest, or at leatof taxes of some kind for
this purpose, appears to be indispensable. If
the distribution of the ebjects of taxation, or the
mode of levying and collecfing the' tax be un
fair, or onerous, undoubtedly the evil should bn
I have heretofore declared my deternination
to do all that belongs to this department to meet
falhfully the engagements of the State, and to
maintain unsullied, the credit and fidelity of the.
Commonwealth. My sentiments in relation to
these matters have undergone no change, and I
am pleased to find that on this subject, there is
no diversity of opinion among the great mass of
the citizens of the State. All agree that, when
ever the constituted authorities of the Common
wealth, have entered into engagements con-
, formably to the constitution and laws, whether
these engagements have been characterized by
due prudence and a proper regard to the inter
ests ofihe 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
Commonwealth, and the energies of her citizens,
be put in requisition, to meet her public en
gagements promptly, puctually, and unhesita
tingly. . It is, therefore, respectfully and earn
estly urged upon the Legislature, to take the
nccessrry steps, at the earliest possible day, to
ensure this desirable result.
As .the most efficient means that have' occur
red to my mind, I would suggest the following
course. Let the Legislature ascertain'from the
financial departments, both the ordinary-revenue,
and ihc amount necessary to be raised, an
nually, for the payment of the interest on the
State debt, and the ordinary expenses of gov
ernment. Let provision also be made to cover
all possible coritingences and losses on collec
tion. Add to this a sum, though ever so small,
for a sinking fund, to be applied annually to the
-extinguishment of the principal of the public
debt, and apportion it among the several coun
ties of the Commonwealth, designating the
amount to be paid by each, by an uniform ap- .
portionment according to the triennial, or last
assessments, with such corrections and equaliza
tion as shall be found necessarry, 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 coun-
ty. commissioner for omitting to have the dupli
cates 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 the Treasury,
on or before the day required by law. It is be
lieved that a committee of the .Legislature would
be as competent a board as could be raised, to
apportion the quota of the several counties, as
above-mentioned, -aided, as they will be, by the
late assessments and census. . The establish
ment 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 the
meeting of her engagements. A regard to econ
omy, as well as justice, to the man who labor
upon the repairs of our canals and rail roads,
requires that they should be punctually paid
The laborer is worthy of his hire, and is ns mer
itorious a creditor as the Commonwealth has,
and it is absolutely disreputable that .he should
be dependant on the borrowing of money for
his pay, and be unable, at times, for months to
gether, to procure as much for his labor as will
buy him a loaf of bread. It is respectfully sug
gested, that when abundant means from taxa
tion are provided to meet the interest of the
State debt, that the lolls on our public works
shall be first applied to their repairs, so that
we may know, at a glance, to wha. the nett
revenue, if any, arising from them, respectively
amounts.
It is not to be, disguised that we are deeply
in debt ; and that tho times call for an tin quail
ing fearlessness in our public functionaries, to
meet the emergency, and to provide the means
for our extrication. The people are already
burdened with taxation, and those burdens can
not be, diminished, if we expect to pay dur
debts. The conduct and motives of those who
make provision to pay them, may be misrepre
sented, mid 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 Ihcir own purposes. But the responsi
bility is one which crery honest public func
tionary must meet fairly and frankly, and in so
doing he will be eventually sustained by the
people at large, who never deliberately err,
and who always will reward, with their confi
dence, an honest and fearless devotion to their
true interests, even though it rjia', at first, have
met with temporary disapprobation.
The means io pay off the loan under the act
of 4th May, 1841,-Mo pay the foregoing credi
tors of the State, and the inteieat on the public
dobt, must be provided before the Legislature
adjoutn3. Sound policy, nay common honestyj
demands this much at your hands, and 1 ant
pewua'ded nb member of the Legislature will
shrink from a duty enjoined by such considera
tions as ihcse.
It will be found on reference to the amount
of taxes paid by the people, that comparatively
a small portion is levied to discharge tho inte
rest on the public debt.. Although in the ag'
gregate the taxes are onerous, by far the great
cr amount is absorbed in ihe ordinary purposes.
t)f township, city, and county affairs. 1 take
great pleasure in stating the fact, that the in
crease of the taxes for the maintenance of the
faith and honor of the State, has been regarded
in a spirit of patriotic duty by the public at
large, and has been borne without repining, un
less, indeed, we except a very few persons, re
siding in portions of the State which have reap
od almost the entire benefit of the expenditure
of the vast sums of money, for the-payment of
interest on which these taxes are imposed. 1
felt satisfied when I rccommened, early ip my
official career, the resort to taxattoU, instead of
additional loans, to pay the interest annually ac
' cruino-, that the enlightened yeomanry of Penn
sylvania would, under the circumstances, sanc
tion the recommendation. 1 am now convinc
ed I did not mistake their true character ; nor
can the,extraordinary conduct,of some persons,
professing better principles, who first ufged lhe
adoption of the measure, and afterwards de
nounced those who acquiesced in it, shake for
a moment my steadfast convictions on this sub
ject. I always believed the people would do
theirduty, letit-cost what itmight;-thefirst:'in-
stance is yet to be found in our history when
they have flinched from it, if rightly under
stood. The unprecedented increase of our popula
tion and resouict'S, cannot fail, in a few yeaits,
to render our improvements so productive as
to supercede the necess ty for taxation. The.
ultimate value of our stupendous system of
nublic works can hardly now be estimated.
They have already added an incalculable J
amount of value to the property of the citi'.
zens of the Commonwealth, and given 'an ear
ncsc of their capacity for future usefuhiffsB.
The travel and transportation upon them
must increase in full proportion with the mul
tiplication of our population, and the dey'el
opement of our exhaustless resourcesWhen
it is recollected that the population of this
State in the year 1800, was only 602:545; that
in 1820, it was 1,049,313 ; and in 1840, it was
1,724,033 j showing an increase within the
last twenty years, exceeding the, Whole popu
lation in the year 1800 ; and v heir it is re
membered that this immense increased and
increasing population has imparted, and is
imparting, its intellect, energy and industry to
the, improvements. of the agricultural,, mining
manufacturing and commercial Interests of
the Commonwealth ; and that during the past
year, when trade and business were greatly
depressed ; 'when the Delaware division was
not in use until about thest of August ; and
when the important anthracite coal trade from
the V' oming, Shamokin ,ar.d Hear valleys,
and other intermediate prjjnts to tide ; and
the bituminous coal trade from the Allegheny
mountain, on the West Branch, and Juniata
region, to tide ; have bcenybarely commenced
the receipts of toll amounted to the sum of
6J,260 44, it will be difficult to form a just
estimate of the extent ofthtir future useful
ness and extended receipts,
v.
These internal improvements, for the con
struction of-which the principal amount of the
State debt has been incurred, consists of TCS
miles of canal and railways completed, and
165$ miles of canal in progress of construction
and nearly completed. t
The finished woiks arc the following :
" Miles.
The Delaware canal, from Easton to tide
at Bristol, ' 59;
The mail line of canal andCraihvay from
Philadelphia to Pittsburg, ' 395
Canal from Beaver, on the Oluoriver, to,
Greenville, in the direction offErie, ' 72
Canal from Franklin, on the Allegheny
river, to Conneaut lake, :x 49-
Canal. Susquehanna and North Branch,. .
from Duncan's Inland to Lackawajvna, 11 H
Canal, West Branch, from Northumbr-h
land to Farrandsville, ;r 73
Several aide cuts and navigable feeders, 7
Total canals and railways completed, 168$.,.
Canals in proirress and nearly comnleted :
Miles;..,
Nor'.h Branch extension, from Lackawan- t
na to New York line, 90;
Erie extension, from Grenville to' Eiie
harbor, 62$
Vv iconisco canal, from Duncat,'a Island to
Wiconisso creek, 1.2
Total canals in progress,
1654
The report of the canal commissioner1:, with
the accompanying documents, which will
shortly be laid before you, will show, in detail
the state and condition of our public improve
ments. Having in former communications to
the Legislature, stated my views in relation to
our system of intern.il improvements, 1 beg
leave, respectfully, to refer you to them,- as
being unchanged, without wishing unnecessa
rily to extend this communication, by embo
dying them in it.
When 1 first entered upon the duties of the
executive department, the. question 1 f com
pleting the North branch and Eric extensions,
was submitted to the action of the legislature.
The representatives of the people decided in
favor of completing both, and have by three
subsequent acts, appropriated coiisideralile
sums of money for that purpose. The North
Branch canaf has already cost S2,348,2r6 38,
of which the sum bT $33 676 4'2 remains yet
due to contractors. The Erie extension has
already cost about $2 919,507, of which the
sum of $.i74-,40C 23, is yet due to contractors.
The grave question id now presented to your
serious consideration, whether, under all the
cit cttmstancea, those two lines are to be forth
with finished, or abandoned for all time to
come,.-..nd the entire amount rtf labor and mo
ney expended upon them thrown away. Con
tractors who have gone on to the work, and
perhaps executed the least profitable part of
it, will have fair claims on the justice of (he
legislature for muneratiqn, for the losses
they have sustained by an abandonment of
the work by the common wealth. Judging
from the success which usually crowns perse
verance, in similar applications before the le
gislature, there cap be but little doubt that
this class of clatmatHS will not go away unan
swered and unsatisfied. The farmer whose
lands have been cjut up and destroyed, will al-
so be a just claimant for compensation for the
injury he hai sustained, for which the advan
tages from the proposed canal will not he an
available set cfi"; and it nmy be well to en
quire whether the amount of those claims
would not go far toward the completion of
those brahches of our improvements. The
only valid objection to a prosecution of these
works to complet'un, is the difficulty to be ap
prehended in raising the necessary funds hv
the purpose. I he estimated cost to complete
the Erie, extension is, $536,142 4G, and the
North Branch $1,298,416, independent. of the
ari enrages due contractors, as before stated,
, which must be pail as all events. More con
fidence can be placed in the accuracy of these
estimates of the cost of completing these
works, than could be extended to those made
h the ea:lier stages of our pub'ic improve.
mqns, f om the increased practical experi
ence nl those entrusted with the duty of mak
ing them. My own opinion remains unchan
ged, that it ,is our true policy to go on and
complete both these works, with, as Hlije de-
lay as possible. This however, is a question
. For the'debts now due "to contractors on under'ahy other mode of treating this sui'j. c
these lines, as well as for. rcpairson the. other the issue must be as idle and frivoU.u,
lines, rendered indispehsableand without heretofore; I do not wish to preclude the
which many portions of our canals would have most searching investigation. I merely desuv
been unavailable and useless throughoutthe to direct your attention in a channel that will
season, 1 respectfully urge that someprompt be beneficial to the public,
and immediate provision be made. Many of One of the grcatcstcvils of Uiefj-equcnt
the contractors have laid out-xfth'e'ir3Srhoney arkl i frivolous investigiu1ons7 is tlVaf Hiey brimr
for a long time, and h&yc-snffered serious inju legislative investigations themselves into dis
ries by the delay. If no better expedient can credit. The persecution of the innocent, al
be devisetlLwould recommend the immedi- ways furnishes a shield to the guilt)',
ate issuing of a six percent stock, to all such It is now, throughout the country, a matter
creditors redeemable at such time as shall of idle sport to talk of these investigations.
be thouglftmost expedient. The mode by which they are brought about
The amount required topaydebts duefor 'is'-well'understocd.'A' few dissatisfied con.
repairs on the several lines of canal and rail tractors, and others, impose on the credulity
roaff: it will be observed by the report of the and stimulate the ambition of some niEmhr...
K3anal Commissioners, is unusually lafge. This
is to be ascribed to the unprecedented breach
which occurred in the Delaware division, in
January last, which cost about $.150,000 ; to
the renewal of the North tiack of the Colum-
bia rail road ; to the rebuilding, in a perma-
nent manner, the Int. ks, bridges and aqueducts
on several of the divisions, and particularly
on the North Branch, where the original su-
persi ructtms, composed entirely of wood, had
so far decayed as to leave no other alternative
than either to renew them throughout, or
abandon the navigation entirely It is also, in
part, to be ascribed to the fact, .that only a
portion of th'e funds appropriated :by the act
of the 4 h of May last, for repairs, and to pay
debts then du'-, became available; leaving a
large bal tnCe of the appropriations of . these
objects, therein authorized, still due to the
public creditors. t
There is always, even under the most econ-
omicl adminis' rations of affairs, a greater .
amountof expense incurred in managing and
keeping inrrepar great public fmprovements
for the Commonwealth, thin it would erst if
they were in the hands of individuals. It is,
therefore, respecttuily suggested tor the con
sideration of the Legislature, whetjier the
public interest would not be promoted, and the
amount of the State debt considerably lessen
ed, by a sale of the canals and rail roads be
longing to the Commonwealth, or at least, a
portion of them, or such other disposition as
would diminish their annual expenses to the
Commonwealth, and increase the amount of
revenue from them.
Were the Commonwealth free from debt, I
should hesitate to recommend the sale of any i
of her pub he improvements. But oppressed
as she r. the cost which the repairs require,
and the necessity of relieving ourselves as far
as poss.ble, induce me to urge action on this
subject, at least so far as regards the Colum
bia rail ro.id, and the Delaware division of
the Pennsylvania canal. It will matter but
little to those interested in the use of the im
provements, whether they are in the hands of
the public or of individuals, provided proper
safeguards are enacted to protect the public,
in the free use and enjoyment of them, and to
guard against abuses and exactions..
If it be objected that sales cannot be effect
ed in the present state of our pecuniary em
barrassments, that will be no reason why a
law should not now be enacted, authorising the
sale of such portions of them as shall be deem
ed proper, subject to the approbation of the
Legislature, on the sale being reported. If
sold, even on an extended credit, if the prin
ciple be secured, and the interest punctually
Lpaid, it will so far relieve the Commonwealth.
It it were made a condition, that State stock
shouhhbi? received in payment, it would prob
ably make the sale more advantageous to the
Commonwealth. The disposition of capital
ists would thus be made known, and it can, at
least, be ascertained whether a sale at an ad
equate price can be effected. Thepolicy of
leasing for a termioF years, one or botmorHhose
improvements, has been more than once sug
gested. Of the propriety of so doing, I am
not prepared to express a decided opinion,but
have thought it worthy of a suggestion, for
your consideration. ." ;
That the public works should b"e unprpduc-.
tive, is owing in a great measure to a Want of
proper legislation on the subject, and unless,
this be remedied, it must impair public confi
dence in their ultimate utility. The Canal
tommissi mcrs have repeatedly urged upon ! the provisionlrorthe. act of 4th May to pro
the legislature, the propriety of allowing the! vide revenue, and hence the capital of the
uommnnwealth, alone, tocarry the pasaengers
on the Columbia rail road, No rail road in
the United States could sustain itself, if it
were to relinquish the carrying of thepassen
gers, yet, on that road, this strange condition
is exhibited. The State has expended in its
construction over four millions of dollars, while
the capi'al employed by those carrying the
passengers is perhaps thirty thousand dollars.
The State on her immense outlay, is reaping
about 3 per cent, while the individuals carri
ers on their thirty thousand dollars; are clear
ing nearly 200 per cent. So it is also, with re
gard to the transportation between Philadel
phia arid Pittsburg. The line of our improve
ment between those cities, was constructed at
a cost tf a fraction over four millions of dolls.
The transportation on it, is monopolized by
some seven or cignt companies, employing a
capital of less than four hundred thousand
dollars: yet, while the State is receiving little
mere than will keep it in repair, the transpor
ters are realizing immense profits, and that
too, on a comparatively small outlay.
This can only be remedied by vesting the
canal commissioners with lull ant! ample au
thority to adopt such measures, as in their
judgment, will be best calculated to enlist in
dividual enterprise, and invite competition.
and to counteract the effectaof the selfish und
monopolizing system, that has controlled, and i
now controls the transportation on our public j
works.
It may possibly be supposed that the catial
commissioners possess adequate "power alrea
dy for this purpose, but this is to mistake the
case. From the nature of that department
of the government, it is always made the tar
get at which the discontented and. interested
point their shafts. Not a session of ttnrlegis
htture passes without harrassing the commis
sioners with investjgations,the whole state
is ransacked for accusers, eve ry act is ques
tii ned and misrepresented, and after all, the
result is fruitless. The first instance is yet to
ne K.unu, in winch any thing tangible has been
produced, or any salutary reform of the sys
tem effected. Were- the legislature to devote
one session to an honest and- thorough exami
nation and correction of the abuses and tie
fects ql the system, without appoying and pur-
suing individirfoiniTlrer ends, not opoidv
of the legislature to offer a petition, complain
mg of public grievances. A committee to in.
vestigate is appointed, subpoenas are issued,
and straightway, swarms of hungry conffderl
ates thtong the seat of government, to prose-
cute their claims before the legislature, to
lounge at the public expense, and join in a
wholesale pillage of the treasury. At the
close of the session the committee reports.
the witnesses return to their homes.and laugh
at the trick' as they pocket the spoils. By re-
ference to this subject, it will be found that a
large poi tion of the legislative expense;, is
incurred in this way. The extraordinary in-
crease of these expenses, over those of all oth-
er departments of the government, has been
oflateyears a matter of just complaint,
It becomes my duty, in the next place, to
invite your earnest attention to the present
condition of the banks, and currency of
state. .It is a most lamentable fact, that, in
relation to this subiect. the trreatest irreiruW-
it v and disorder prevail. It is true, we have
little, if any. -of that wretched illegal trash,
j which, dunng the early part of the If
'years, infected all sections of the- Con
st six
ommon-
wenlth, in the forms of notes, checks, certifi
cates, &c &c. of corporations and individual.-,
for small sums, put forth without lawful au
thority, and in spite'of the prohibitions of law;
but wc have, what is little better, a largf
amount of notes in circulation, ostensibly legal
and purpoitiug to be of equal value, because
founded on the faith of the state, by whatever
bank issued, and yet notwithstanding this fact,
discredited and repudiated by the very insti
tutions for whose benefit and relief they weie
authorized to be issued.
The act of lhe last scssJon entUkd an act
t0 v5cIe rcvcnuc to meet the demands on
the treasury an(, for other eposes," unaei
the nrovk;ons of whIrh thp ' ' ,, nnt hnvp
been thrown into circulation, having become a
law by the sanction of two thirds of the Leg
islature, according to the forms of the Consti
tution, notwithstanding the objections of the
Executive, I have exerted myself to the ut
most, to sve its provisions properly carried in
to effect. This was my duty, as the Execu
tive, and I have faithfully performed it, agree
ably to the best dictates of my judgment. I
did hope that some of the evils which have
resulted from it, might have been obvi ited, if
it was enforced by me, and acted upon in a
spirit of enlarged wisdom by the banks them
selves. This hope has been vain. The worst
anticipations have been realized, and it is my
duty to suggest such a remedy, as appears to
me to be best calculated to correct the griev
ances, under which the public labors.
By this act a loan of three millions one hun
dred thousand dollars was authorized, to pay
specific appropriations made by the said act,,
and the several banks of the. Commonwealthr
subject to the payment of a tax on their divi
dends, were authorized to subscribe for the
samp, in certain proportions to the capital
stock of each.
The whole amount of banking
capital in the Commonwealth, is $23,559,574r
Banking capital not subject to
a tax on dividends, 5, 150,000"
Banking capital subject to the
payment of a tax on dividends, SlS,409,3r4
. Of the banking capital subject to the pay
ment of a tax oivdividends, banks holding to
the amount dfiifilO.836,145, did not accept of
. banks which did acc
accept ot the provisions of
the said act, amounted only to the sum of $7,
573,229. . '.
The whole amount ofthe loan taken by the
accepting banks and paiciinto the treasury is
1,726,650 6 leaviiighexsurnoF-'Sl,343,349
42, which hasinot been received.
On the 30th August, 1841,1 accepted an of
fer ot the Towan'da Bank, to subscribe for an
additional sum of one hundred thousand dol
lars ofthe said loan, and on the same clay, ac
cepted an offer of thejErie bank, to subscribe
for an additional surmof three hundred and
fifty thousand dollars
Of these offers the state, treasurer agreed to
accept from the Erie baiill"surn;qf twenty
five thousand dollars, and from thlt jowanda
bank the sum of thirty seven thousand five
hundred dollars. This bank did not accede to
the proposition to accept a part of the sum of
fered, hence no part of the one hundredHhou
snnd dollars was received at the treasury.
Thus it appears a very large portion of the
banking capiul, subject to the operation of
this bill, has taken no part of the loan at all,
and can, of course, have no claim to indulgence
under .this law. Those banks which have
complied, stand in a different position their
loans must be repaid before they can be forc
ed to resume. It is an inquiry of much ir.i -ment,
whether the banks that have not crsri
plied with the requisitions of the law, ought:
not to be deprived of the advantages arising;
from ute use ot the notes issued by saose that
did.
After the most patient reflection on the sub
ject, I nm persqadccl that the only effectual
ami certain remedy is, to repeal the act so far
as relates to the issue of these notes, and to
provide adequate means to discharge-the loan
on which they are based. To pay this loan a
six per cent stock might be authorized to be
thrown into market, to sell for whatever it
will produce. Should there be a small loss
upon it, 1 am sure it will be deemed a very
inconsiderable matter, compared with the in
convenience the people suffer from the present
state of things. To remedy this, a sacrifice,
to'some extent, is inevitable;
(CQXQ1AJS1Q, NEXT WCJtff.)