Governor's
Moss a
ffe,
GOVERNOR'S MESSAGE.
To the Senate and House of Representatives, of the
Commonwealth of Pennsylvania,
Gfosm.Bxs2r : No ordinary reasons for thank
fulness to the Great God, crowd themselves upon
the Representatlvea of the people, at this annual
meeting. Abundance during the put year, has
been the reward of honest industry, in every pur
suit of the citizens. Animated with health and
encouraged by success, they have steadily progress
ed in the accomplishment of their destiny, and
while enterprize has been highly favored in the de
velopment of our great resources, the elevating
purposes and life of social organization, religion,
morality, education, refinement and civilization have
been cherished and advanced.
Although peace and tranquility have reigned
within the borders of this State, we are identified
with, and deeply interested in the war with Moxi
co, in which the nation is engaged a war which
the prudence, forbearance, and desire of the people
to retain friendly relations, could not avert ; and
which was eventually forced upon us, by tho duty
that rests upon every well regulated Government,
to protect the rights of its citizens, and maintain
the honor of the nation.
Our religion, our interests, and our institutions,
are essentially peaceful. The people hold in their
hands the sovereignty of the nation, and exact from
their rulers obedience to their will. By their con
trolling influence, they sanction and preserve the
cardinal policy of maintaining amicable relations,
with all other nations. By them the rights of
American citizens, in all parts of the world, and the
honor of the nation are held sacred. Violations of
these national rights and national honor, appeal to
the justice, and invoke the power of the whole peo
ple for their vindication. Tho war of 1812, with
England.and the existing war with Mexico, are illus
trations of this distinguishing feature in the charac
ter of the American people. Patient of injury while
wrongs are sufferablo, and reasonable hopes of a
return to amicable relations, upon equitable princi
ples, can be entertained, yet no nation may, with
impunity, violate the obligations of treaties, or break
faith with the United States.
In defence of these just rights, the power of
this people is resistless. Every citizen holds him
self responsible, and the army springs into exis
tence, not by conscriptions, or contracts for enlist
ments, but by the voluntary impulse of indepen
dent freemen, animated by patriotism and urged
onward to deeds of heroic valor, by the approba
tion of the whole nation. This invincible spirit,
guided by the science and skill of the officers, has
led our armies in Mexico, from one victory to an
other, and from one great triumph to a greater, and
will lead them still onward, until a permanent and
honorable peace is secured. While the honest
pride of every American is gratified, by the
great achievements of our soldiers, his confidence
in our free institutions, and in the means to defend
and preserve them, is strengthened.
In the support and prosecution of the war in
which wc are engaged, Pennsylvania has given
token of her ancient and uniform fidelity to liberty
and the honor of the nation. Her volunteers were
among the first to tender their services, and in every
encounter with the enemy, have magnified the mil
itary fame of tho Commonwealth, by deeds of ro
mantic chivalry and noble daring. In these great
achievements, many of our heroes have fallen in a
foreign land. The moans of the winds of Heaven,
in passing through the long grass on their graves, are
re-echoed by the 6ighs of their friends in the fath
erland, and the sad requiem is a just tribute to their
Bufferings and their valor.
The finances and credit of the 8tale the amount
and condition of the public debt, and the means of
reducing it, are among the objects which claim the
first attention of the Representatives of the people.
The amount of the public debt, on the 1st De
cember. 1846, was $40,789,577 00
On the 1st December. 1847, it was,
according to the Report of the
Auditor General, as follows, viz:
Funded Debt.
6 per cent stocks, $1,752,335 06
5 37,267,990 37
4$ 200,000 00
Relief issues in cir
culation, 931,664 00
Interest certificates
outstanding,
Interest certificates
unclaimed.
Interest on outstan
ding and unclain
ed certificates, at
4$ per cent., to
1st August, 1846,
time of funding,
353,956 43
4,448 38
22,459 80
96,095 47
. 40,628,949 61
Being $160,627 49
lew than it was on the 1st December, 1846.
This payment, or reduction of the debt, within
the last financial year, was effected by the cancella
Hon, at the Treasury, of one hundred and fifty
thousand dollars of the relief issues, and by the
receipt of State slocks in payment of old debts,
which is allowed in certain cases by law.
There would have been two hundred thousand
dollars of the relief issues cancelled, within the
year, in accordance with the requirement of the
law but the payment of the interest which fell due
on the first of February, last, left the Treasury so
much exhausted, that the amount which should
have been cancelled on the 81st March, was not
then on hand. It will be recollected that it became
neceetary to anticipate a portion of the means of
the yew, by a loan of $400,000 00, to meet the
Bterest which Ml due on the 1st Pebruafr.
i-
The balance in the Troasury, on
the 1st December, 1846, was, $384,678 70
The receipts into the Treasury,
during the financial year ending
the 30th Nov., 1847, from all
sources, including the loan of
$200,000 00 above referred to,
were, 3,977,025 89
Making an aggregate of 4,361,704 59
The payments made out of the
Treasury, during the same peri
od, including the repayment of
the loan of 200,000, were, 3,680,813 74
Leaving the balance in tho Treasu
ry, on the 1st Dec, 1847, 680 890 85
being $296,212 15, more than it was on the 1st
Dec, 1846.
The estimated amount of available
outstanding taxes, on the 1st
Dec, 1847, was,
and the estimated amount of the
same, on 1st Dec, 1846, was,
which exhibits an increase, in this
item, of
To which add the increase of the
balance in the Treasury, of
548,881 00
542,688 64
6,192 36
296,212 15
and we have the sum of 302,404 51
as the aggregate increaso of tho balance in the
Treasury, and of outstanding taxes on the 1st Dec,
1847, over the same items on the 1st Dec 1846.
This calculation shows, that the reven ucs assessed
and accruing, within the financial year, ending on
the 30th Nov. last, were not only adequate to meet
the demands upon the Treasury, within the year,
but exceeded them by the sum of 302,404 51, as
above stated, and if to this sum be added the amount
of the debt paid within tho year, to wit, 160,627
49, we have the sum of 463,032 00. as the ex
cess of the revenues accruing within the year, over
the payment of the interest on the public debt, the
expenses of the government and the other ordinary
demands upon the Treasury.
This presents a very encouraging view of the
improving condition of the finances of the State.
It is the first time, since the commencement of the
internal improvement system, that the permanent
revenues accruing within the year, unaided from
any other source, havo exceeded or been equal to
the demands upon the Treasury. It is true, the
interest upon the funded debt, and other claims
upon the Treasury, during the two preceding years,
including the payment of a portion of the public
debt, by the cancellation of relief notes, were punc
tually paid ; but, in doing this, the balance which
had accumulated in tho Treasury, on the 1st Dec.
1844, by the previous suspension of the payment
of the interest on the public debt, for two and one
half years, as well as the amount of taxes then
outstanding, were diminished each year, until the
last, as is particularly explained in my annual mes
sages, in 1845 and 1846, to which you are respect
fully referred.
An estimate of the receipts and expenditures, of
the current year, made with much care, and upon
consultation with the other officers of the govern
ment, is hereto appended, by which it appears, that
the estimated amount of receipts into the Treasury,
from all source, for the financial year, ending on
the 30th November, 1848, is 3,921,900 00
And that the estimated amount of
expenditures, for the same po-
riod, including the cancellation
of 200,000 relief notes, is 3,676,890 00
Which exhibits an estimated excess
of receipts, over expenditures, of
To which add the estimate for the
cancellation of relief notes, which
are a part of the public debt,
$315,510 00
200,000 00
And wo have the sum of 545,510 00
as the estimated excess of receipts, of the current
financial year, ending on the30lh November next,
over the payment of the interest on the public
debt, and the current demands upon the Treasury.
Theso estimates, when taken in the aggregate, I
consider entirely safe and reliable. During the
last few years, the actual results have been more
favorable to the Treasury, than were anticipated by
the estimates. Notwithstanding the extraordinary
floods, which occurred during the past year, the
consequent damage to the public works, and the
interruption of the trade upon them, for about two
months, the tolls taken by the collectors, within
the year, according to the report of the Canal
Commissioners, amounted to the sum of 1,581,
575, 87, being 286,081, 11, more than was ta
ken in the preceding year, and exceeded the esti
mate made for the last year, near one hundred thou
sand dollars. Had no unusual interruption of busi
ness occurred, the amount taken would certainly
have reached eighteen hundred thousand dollars.
The estimate of canal and railroad tolls, for
the current year, is seventeen hundred thousand
dollars, which, there is good reason to believe, is
rather below than above the amount which will be
received. The expenses of repairing the damages
to the public works, by the floods of the past
year, will principally fall upon the current year.
They are, however, included in the estimate of the
expenses of the year, and will not affect the results
presented in the preceding calculations.
The amount of relief issues in circulation, on
the first of December last, was nine hundred and
thirty one thousand, six hundred and sixty four
dollars, of which fifty thousand were cancelled at
the Treasury, on the 31st of Dec, leaving eight
hundred and eighty one thousand, six hundred and
sixty four dollars, still outstanding, The means
of the Treasury, it is believed, will be adequate to
the cancellation of the whole amount now in circu
lation, within the present and succeeding year.
Many of them are so defaced, as to be almost illegi
ble, and are unfit for circulation ; besides they vitiate
the currency, and furnish an excuse for the use of
email notes from other states, in violation of law,
and lessen the circulation of gold and silver among
the people. Justice to the public creditors, who
are compelled to receive them in payment of their
interest, when they are below par, as well as to
tho people at largo, imperatively demands that they
should bo taken out of circulation as soon aa prac
ticable. I, thereforo, rocommond tho passago of a
law, allowing such of the Banks as have issued
theso notes, to fund them at a rate of interest not
exceeding six per cent, par annum payably semi-annually,
and that all the surplus means in the
Treasury, beyond tho payment of tho interest on
the public debt, and the current expense of the
government, be applied, first, to the redemption or
cancellation of those that may remain in circula
tion, as they come into the Treasury, and then to
the payment of the amount funded by the banks.
The resources of tho Treasury will be sufficient
to cancel all that may 6o received in payment of
dues to the Commonwealth, and to pay the banks
tho amount funded within two years. By this pro
cess, should tho banks agree to fund any considera
ble portion of them, they may all be taken out of
circulation wiinm me present year, it may be
urged, that as theso notes do not now bear interest,
they ought not to bo converted into a debt on which
interest will be payable. This, however, is but a
superficial view of tho subject There is no longer
any excuso for a continued violation of the public
faith, by the payment of the public creditors, in a
depreciated currency, and the small amount of in
terest which will have to be paid, if the banks agree
to fund a portion of these notes, will be more than
compensated by relieving the character of the State
from the continuation of this act of injustice, and
the people from the losses incident to a depreciated
circulation. This currency had its origin in an
evasion of the Constitution, and ought to be blotted
out of remembrance.
It may now bo safely assumed, that we have
reached a period, in our finincial history, when the
permanent revenues of the Commonwealth ex
ceed, annually, the interest on the public debt,
and the ordinary demands ipon tho Treasury, by
at least half a million of dollars. And this excess,
it is confidently believed, may, by a judicious re
vision and amendment of the revenue laws a pru
dent and economical course on the part of the legis
lative and Executive departments of the Govern
ment, and the faithful management of the public
works, be augmented in a few years to ono million
of dollars, as a sinking fund, without increasing the
burdens of those who now pay their taxes, on a full
return and fair valuation of their taxable property.
This sum applied semi-annually, with its accruing
interest to the redemption of the five per cent.
State stocks, at par, woulJ discharge upward of
sixteen millions, four hundred thousand dollars, of
the debt in twelve years, and reduce it at the end of
that time, to twenty-three millions. It is believed
that all the relief issues will be redeemed and can
celled, by tho year one tho isand eight hundred and
fifty, and if the operations pf the sinking fund are
then commcnced.on tho furnlcd debt, the result thus
anticipated, will be realized in the year one thousand
eight hundred and sixty-two, at which time, there
is good reason to believe, the net income from the
public works, will be more than sufficient to pay
the interest on the balance of the publio debt, and
thereby relieve the people from all further direct
taxation for this purpose.
Some may view this proposition as visionary,
and delutivo. but I regard it as entirely practicable,
under a wise and prudent administration of the
affaire of the State. The augmenting trade upon
our public works, and the consequent increaie of
business in our commercial oud manufacturing cities
and towns, and the increase of population and tax
able property, within our limits, cannot fail, under
a proper enforcement of tho revenue laws, to add
to the means of the Treasury every year. If, how
ever, this great object is to be effected, the public
revenues must not be diverted to other purposes,
and the most rigid economy, and the strictest ac
countability, of the public agents, must bo required
and enforced. It is among the first, and highest
duties, of those entrusted with the administration
of the government, to adopt the most efficient means,
under existing circumstances, to increase public con
fidence and guard against the good faith of the
State being ever again called in question to reduce
the public debt, and relieve the people from per
petual taxation to pay interest, I, therefore, feel
impelled by a sense of duty, to renew the recom
mendation contained in the last annual message,
which is in those words: "In connection with this
subject, I respectfully recommend to the General As
sembly, the propriety and policy of proposing to tho
people, an amondment to tho Constitution of the
State, under the form of the 10th article of that in
strument, by which the income from tho public im
provements, after deducting the necessary expenses
for rep iirs and superintendence the revenue aris
ing from the State tax on real and personal prop
erty, for a certain period, and such other items of
mcomo as it may be deemed expedient to include,
shall be set apart and sacredly pledged, for the pay
ment of the interest upon the public debt, and the
gradual liquidation of the principal. Such an
amendment, judiciously arranged, would, I appre
hend, meet with the decided approbation of the peo
ple of tho Commonwealth. It would concentrate
public sentiment upon a fixed object remove all
doubt of the fullness of the public credit, and lay
the foundation of the final extinguishment of the
public debt. Tt would give an additional security
and assurance to the people, and to the public cre
ditors, that, in no event, could the public revenue
be diverted from its legitimate object, and would
furnish conclusive reasons, for the prompt and cheer
ful payment of the taxes."
The inequality of taxation arising from large
quantities of property subject to tax under existing
laws, escaping assessment, and tho unequal valua
tion of that which is assessed, continues to bo a
subject of just complaint. I am well aware there
are inherent difficulties connected with the subject,
but still the experience of the operation of the
y stem, and the defects which have become apparent,
will point out soma remedies for the grievances
which exist, and which should be adopted. I,
therefore, most respectfully invite the attention of
the General Assembly, to a thorough exarainatten
of the subject Whatever just amount of taxation
one man escapee by an evasion, or imperfect exe
cution, of the law, ia an imposition and fraud up
on his neighbor, who makes a full return of his
property, and pays a tax upon a fair valuation.
There aro no subjects moro intimately connected
with, or which have a more direct influence upon
the interests of the country, than the currency and
the banking system.
There is good reason to believe, that the prospe
rity of the people of the United Statee, particularly
those connected with the agricultural interests, has
been promoted, by the removal on the part of the
British Government, of the high duties upon our
exports of grain, and other agricultural productions,
and the modification of eur own tariff, by which
tho commercial exchanges of the two countries have
been greatly augmented, without affecting, injuri
ously, so far as I am informed, any of the great
manufacturing interests, or other industrial pursuits
of our people.
Other causes, in combination with those alluded
to, have produced a large influx of specie into the
United States, during the past year, which has gone
into active circulation among tho people, or found
its way into the vaults of the banks. This increase
of the precious metals, while it should dispense, in
a great degree, with the use of paper currency, has
a tendency to increase it, by enlarging the means
of the banks to extend their issues. The effect of
which, if encouraged, will be to promote specula
tion, and over action in every department of busi
ness, and thus make the present substantial pros
perity of the people, the means of producing adver
sity and depression. The operations of the Con
stitutional Treasury have had, and no doubt will
continue to have, a most salutary influence, in re
straining the tendency to excessive banking, by
keeping the public revenues out of the vaults of tho
banks, and compelling them to bo prepared to re
deem their notes, and furnish specie, to meet the
wants of those who have customs, and other dues,
to pay to the Government
Although the restraining influence of this great
measure, upon the banking system, is most bene
ficial, still it does not dispense with the necessity
of caution and prudence, on the part of tho States,
in every thing pertaining to banking and paper cir
culation.
Moderate discriminating duties, with a sound
currency, limited to the specie standard, may be re
garded as the natural and healthy condition of a
countrv. bv which the iust rewards ot labor are
secured, and all the great interests of the people
advanced, while high duties and a redundant paper
currency operate as unnatural stimulants and create
apparent but delusive prosperity
Nothing can contribute so much to the mainte
nance of our present prosperity, aa a sound cur
rency. Pennsylvania is rich in productions of almost
every description required by the wants of mankind ;
and nothing is necessary to make her people the
most independent in the world, but a proper regard
for her true interests. To advance these, she must
not be seduced from her devotion to sound princi
ples, by the artificial contrivances of false econo
mists, whose selfish theories are as delusive, as they
are destructive of the public good.
The present is a most propitious period, when
there is an abundance of rrold and silver in the
countrv, to make a determined effort to increase its
circulation, and securo to the people the currency
which the wisdom of the framers of the Oonstitu-
tion of the United 8tates provided. Instead of
creatine now banks, or increasing the capital of old
nnpc nnr efforts should be directed to secure the
solvency of thoso which already exist, and thereby
render their circulation sound and reliable.
Impressed with the force of these considerations,
I am convinced that the increase of the banking
capital of the State, would bo unwise and impolitic;
and I respectfully recommend, that before any one
of the existing banks is rechartered, a searching
scrutiny be instituted into its affairs, its manage
ment, its credit, and its means ; and if it be found
that the notes have been suffered to depreciate, that
the accommodations have been bestowed upon fa
vorites, and large speculators and dealers in money,
instead of being diffused among moderate and safe
customers; that tho issues have at one period en
couraged speculations by their excess, and at an
other oppressed honest industry, by their contrac
tion ; in short, that the legitimate objects for which
the privileges were granted, have not been by fair,
faithful and judicious management accomplished,
then the charter should be suffered to expire by its
own limitation. The discontinuance of such in
stitutions will promote the public good, and will be
hailed with approbation by all but those who have,
for private gain, wrested them from the purposo for
which they wore established.
ThiB policy, so just towards the public, while it
may, to a moderate extent, diminish the prcsont
amount of banking capital, will strengthen public
confidence in the other banks, and add to tho sta
bility and soundness of tho currency. And as it
may, also, increase tho profits of existing banks,
beyond a just compensation to the shareholders for
their investments, and as this excess of gam is da
rived from the special privileges conferred upon
them by the Legislature, I recommend, that the tax
imposed by the act of the 1st April, 1835, upon
dividends exceeding six per cent, per annum, be
increased. While the inducement to oxcetsive
banking will be reasonably checKeu, ny iub mere
of this tax, the finances ot the oiaie nmj ue, w
ummiuK - . .. r,. : i
some extent, improved, and the puonc we.. pro- inteIleclnal powers and his jreligious
moted. . , i ,u t,;a .,. principles, advances his own happiness and improves
The policy indicated, will lea d to Ihe n ns. P P condition; and, thus, the happiness and
cution of the law prohibiting the circulation of for- & ? . c d E eflbrt tQ
eign notes, under the ZH this' sovereign lawjy placing
as soon as tho Mane a of the pwow or callings beyond its control,
celled. This will be a P08lU.a.dva.n" nJ B has hitherto, and ever will, like every other trans
provement of the currency, which ; should be then de8tructiT8 0f good. If our free insti-
followcd by a law prohibiting the circu atmn of all g .f u u right Aal a men should
notes, below the denom.nal.on often dollar Ihe f u of 0Uf cn.
rfeteoladonwill then be filled with an
abundance of gold and silver, the public secured
against the cbanc of loss by broken bank., and
3fp elated unoy J aad the way w.ll be opart
to such furthor inprovementa, aa tho real inters
and conveniencec; the peoplo may demand.
wry i v
i no cauuonorr enactments l havo sugge
cannot fail to increase, rather than dimin
the amount of souiid circulating medium, fu
entitled to the ptblie confidence. Tbo effect
be to bring thetpecie of the country into acM
circulation, to fcaish the people with a subitansj
currency, that ctanot be impaired by bank failure
and to restrain tse tendency of the banks to tost
means of oppresion m time of adversity.
tice. in some of the States, cal cd FREE BANK-
liir. it is tased. in part, upon spacie, and in
part upon staltgtocks, hypothecated with tho Gov
ernment. In (ther words banks become the cred
itors of the Commonwealth, by purchasing her
bonds ; these ire deposited with the government,
and the government endorses, and returns to the
bankers, notoprepared for circulation, to an equal
amount I cia perceive no grounds for confidenco
in this systeo. It must explode, in a country
where it is aicpted to any considerable extent, when
ever a revukon occurs to test its stability, for it
is a deviation from true principles. Sound and
safe banking can only be based and conducted on
money gold and silver. Neither individuals or
banks, can hd that which they have not ; and if
they lend rodit in tho shape of bank notes, with
out tho meacj to redeem them in gold and silver,
they commita fraud upon the community, as they
lend and pet in circulation, that which is not money,
nor the representative of money.
If this sjstem of converting state stocks into
banking cajital, and hypothecating it as a security
for tho pijtient of bank issues, were not a delu
sion, mortgiges upon real estate, might be used
for the sana-purposo, which would afford an equal
if not a be!ar security, for the payment of notes,
and by tb. process, the whole value of the real
estate ef lis country, might be converted into bank
ing capita!, and the peoplo into a nation of bank
ers. Tbiiproposition shows, that the whole scheme
is illusory wd unsound.
Free taking, in its legitimate sense, is the right
which erery man enjoys, to lend his own money to
whom he pleases. It is the exchange of money
for securities, to repay with interest it involves no
fictitious increase of the circulation, but may be
carried os to an indefinite extent, without affecting
the currency. This is tho free banking, which has
at all tiaes supplied, and does now supply, the
wants of i large proportion of borrowers, and com
mends itself to general confidence and approval, by
its simplicity and adaptation to the circumstances of
the peop's.
The policy of incorporating mining, manufactu
ring, trassporting and other companies, for purpo
ses appropriately within individual competency,
has bm fairly discussed ; and, guided by tho un
erring demonstrations, that those enterprizes are
most successfully aiwl ireneficial7-rTltt.etl,Tmler
the control of individual responsibility, the publis
opinion has been expressed in the spirit of the age
in which we live, against the policy.
While all the great departments of businees in
the Commonwealth are prosperously conducted,
underfree and equal competition, there are yet some
men, who seem to stand still, while the world is
goin? onward around them, and who cherish
the antiquated notion, that the timid, contracted
and elfish aggregation of wealth, under the pro
tection of corporate privileges, is preferable for the
tranuctian of business, to the free ardent and
bounding capabilities of individual entorprize :
a powsr which, since William Penn arrived on theea
short,' in 1682, has changed an immense wil
ernea into fruitful fields, and has, in this march of
chiliation and improvement, provided for the
rt&u, the comfort, the education and refinement,
of two millions of free people- What have
corporations done in this great achievement ?
Where are the trophies of their generous spirit,
thai 'alue or their utility 1 They are behind the
tiaH they belong to an age that is past The
tine was, in other countries, where all the rights of
lbs people ware usurped by despotic governments,
in trrant bv the king to a portion of his sub
ject!, of corporate privileges, to carry on trade or
formunicipai puipu",
rciat, and made the means of resuming some of
theirlcivil rights. Then and there, corporations
hsl "merits, and were cherished by the friends of
iberty. But, in this age ana country, unuer our
fre system, where tne peopie ore suvtacigu iu
int special privileges, it is an inversion oi mo
r!er of minus. It is not to restore, but to taKe
aiay from the people, their common rights, and
gire them to a few. It is to go back to the dark
tj for instruction in the science of government,
t:d having found an example, to wrest it from its
urinal Duroose. and to make it the instrument of
rejtoring the inequality and despotism, which lU
ittroduction tended to correct
fhni. whnre lame investments are re-
pired to cany on a profitable business, (and cor
orators do not associate for that which is unprofit-
111 lUilUU V UMB f,
jble.) individual means are inadequate, is every
where refuted in this happy country.
Further, bv cherishing any particular business,
md surrounding it with special privileges, the natu-
al law. which secures to every branch of business
ts appropriate encouragement ana rowaru, is Tre
ated. Under this law, so kindly provided by Htm
iwnn ruies an minx", c.cij
who rules all things, every individual man, untram-
curM9 rf bad 0Ternment, gaiUed by
"stamped by Him who made us, then every human
'law which impairs this equelily, is radioaliy aad
Intrinsically wrong.