)Imornrc=■.•_ : 22•2
ICJ:UIf ;Li ED F JUBT:I PAGF..I
'ought to get, specie in ratan for them,
Let th•tue e' Ares whoa, legislaretres clinnee
to a ithori7., t he L.:see et small notes en.
joy the hew fit of sects currency. Penn
sylvania prefers gold and slaver IS smalls
change f.rr her citizens.
While the B inks of other States enjoy the
advantage of snail notes as a substitute for
specie, we should doubtless allow our Bulks,
!list are deprived of it, some indulgence in
reviniing the payment of specie l'or their
not es and liabilities; and this indulgence
s h ou ld 'he extended, nut so much on account
of the Menke themselves, as of the people of
Pennsylvam'ar and their buienens, which
would be mosi deeply affected by imprudent
legislation on the° subject.
It is apparent to the most casual observer
from the foregoing a sestements of the income
of our public improveins`%nte, the resources of
the Commonwealth, and 'be vast amount of
the State debt falling due, ;mil the interest
annually accruing on ,the sr:vle debt, that
Pennsylvania has a da'p a, Tee ,n sustaining
the business and credit of this State , and her
citizens. Whatever measures c r i i ,:ele our
general business operations and pr e •straLe our
credit, force upon us the inevitable n.^cesOLY
of restoring to taxation qr to a sale of ouetnib
lie improvements, or further State loans at: a
heavy sacrifice. Against all these measures ,
I feel a degree of repegnance that cannot he
easily overcome, The yearly income of the ,
people is already burtriZned with taxes—
their
permanent property is, in effect, mort
gaged with an enorme is State debt. In the
state of things it b3hoves the Legislature to
weigh well the pelicydadopting soy measures
that will curtail the avails of the people's in
dustry, or diminish the resources of the Cum
mon wealth to meet its engagements. It should
not be forgotten that, in the case of debts '
already contracted, the direct effect of reduc
ing the moans of the debtor, is to increase the '
relative amount of his debt. The creditor
gains in proportion as the debtor loses, and
no man can foresee the extent of the impend- (,
leg convulsion. The Commonwealth of '
Pennsylvania,is in no situation to augment ;
her State debt, either absolutely or relatively.
Uatried expedients should be considered well.
I respectively seggest the propriety of
mediately inquiring into the condition of the
Banks of ilea Comennwellth, awl of fixing
the earliest period fur the restenotion et epezie
payments that flyer affiet:e and the pee! ic
wants eel eire,ctatiene jeetify. It woald,
limiter], be eerie !lent to grasleete this resew •
tine, either by iho denoininatien of notes or
amounts to be paid, so as to make one thurth
or more payable forthwith, and the residue at
such respective periods as in the wisdom of
the Legislature might seem to be advisable,
provided the time be not long protracted.
I recommend the appointtnentef three Bank
Commissioners, to hold their offizea respect.
tively for one, two, and three years, so that
ono shall be appointed annually, hereafter,
with the acme powers to examine at all times
into the accounts and condition of the Banks
as are possessed by a joint committee of the
Legislature; and if any Bank shall violate its
charter, to institue proceedings to bring it to
justice without delay; or Wally Bank now in
existence be found unsound, to take the pro
per measures immediately to wind up its con
cerns. A proper and prudent supervision of
this kind, by competent and experienced corn
enissioners, selected for their personal weight
p;* et:erecter and knowledge of the system,
wouij ;.Torate as a salutary restraint in the
unuage ,,,,,,:e of our Banks, independent of the
means which eCels a commission would afford
for correctit4e atie. ,7g •
I also recommend iLe:'D"B2g° of a I"vrm'
pelling ell the Banks in Commonwealth
to receive each others notes Ct Par, so long
as the respective Bank.; continuo to redeem
their notes in specie ; and an failure at any
time of any Bang so to redeem its.nntes 'fret
the bank commissioners be required fort :with
to take charge of it and close its operations
and that such hank be permitted to pay out
at its own counter, nothing but its 'own notes
or specie, unless at the option of those who
have demands apart it. lam clearly of the
opinion that such a law would exert a most
salutary Influence on our banking system.
The rate of exchange between the western
and eastern parts of the State, is at times, a
serious harden on the community. The banks
create that burden. Then on whom could it
be placed with more justice and propriety?
They can make those exchanges with much
less expense, than individuals. It would aseist
to restore confidence, as each bank would be
to some extent the surety for the notes of the
°there. It would introduce a wholesome aye..
tem of checks, long wanted, by inducing each
to keep watch 0•.,r the other; and in case of
excessive issues Leyond their ability to redeem
their notes would be returned upon them,
and the bank be forthwih closed. Self-inter
est is thu ruling motive with Banks, and by
this law we should enlist it in support of the
public good. It is manifest that this would
Ise an essential improvement of the present
system, Ind would render our Banks and the
currency founded and cetter than those of any
other State.
I also recommend than provision be made
by law effectually to prevent any bank, or
banks in this commonwealth, from purchasing
and holding bank stock, or any other stock
except their own, and the stock of the State,
or of the United States; and then only to such
an amount as shall merely furnish a fund for
*mediate resort in case of a pressure, or
under pecutior circuinstarices when loans to
the commonwealth are authorized.
The direct operation of the existing law
Las bees, and must be, to induce banks to en
gage in wild speculations, foreign to their
objects and stature, and to divert their capitals
from the legitimate purposes for which they
were chattered, Nothing short of the repeal
ado present law will arrest this inordinate
cupidity, whieh may be fairley regarded as
one of the principal Authors of their present
ornbarreaments. Bank officers should not,
finder arty eircumstances, be permitted to
dabble in stocks, and a Jaw heavily taxing
brokers, and permitting Delo to follow the
buisnese, directly or indirectly, but such as
tney b 3 speeiaily licensed so to do, would, it
is believed, tend greatly to check many of
the evils of which our city populatiun com
plains.
I also recommend, an unennditional repeal
of the law autherizine ewe k holders to vote by
proxies ; or if you should be of opinion that
this would be going to far, then, as least, so
tar as to prevent proxi, Lem being, given by
stockholders resieing rum the county share
the bank is located, and peshibitiegbonafide
etotoltholJers residing out of the county, from
giving proxies to any officer, director or
agent of the Banks. This system of proxies
is susceptible of the grossest abuses. It has
been used to keep in Once directors, presi
dents and cashiers, of hanks, who were not
the free choice of the stockholders. It pre
vents those who are interested in banks from
investigating their management and enables
dishonest htlicers, not only to defraud the
banks but the hanks to defraud the public. It
is an unnecessary exception to the plain rule
of common sense, that where majorities gov
ern, the votes should attend in person.
I also recommend, the prohibition, by law,
of the pernicious practice of issuing what is
denominated pnst notes, by the banks, or notes
payable at a future day. This is a vielation
of the spirit and principles of all judicious
badking ;--it is a dangerous power to be ex
bercised by the banks, and it will, untimately,
!enable them to evade most of our penal laws.
It calls for effectual extirpation.
I also recommend, that the power contained
in the amended constitution, of repealing
bank charters, reserve° to the legislature on
the creation of all such corporations, shall
be made a fundamental article of every bunk
charter in the state. This will bring every
bank charter directly within reach of the
people at all times, and will enable them to
rid themselves of any banking institntion by
repeal, the conduct ur power of which, rem
&Ts it obnoxious.
I `!so recommend, that the time given to
the bar. Its after the presentation of their notes
and re,lisio t o
. pay them is specie, as well as
to make vp, 'catian to a judge by the holders
thereof, to' s:thi Int proof of the fact, fur the
to have their charters
i,”ireose of procettlii:Lr
iiirfeited, shall be restricted from three
montne to Vail , ' day,. This will affiird a
strong guarantee a;ainst a . l future suspen
sions, and place a more speedy .reuedy in the
hands of the people, should such CheCt:r•
I als.) recommend, that the directoct of the
banks of the commonwealth be rendered
personally liable fur the payrner.t dell notes
issued by the banks respectively tw , ler their
direction, if at any time the same in cii'ettla•
thin, and the money due to depositors 010
exceed the ratio of three dollars for one of
the specie in their vaults.
I also recommend, that from and after a
certain period, perhaps of one year. no bank
in this commonwealth shall be allowed to
isrue any notes of a le, denomination than
tr.m do!lar, wil! cnsure ns a larger
ref eirculatinn, and
e currency
da , ion
tiuder
add gr
and tIJ
to exemli,g from
fi'm dollars, folly confirm; the policy of this
recommendation.
t) tier
k)
I also recommend that the banks be prohi
bited front making dividends exceeding seven
per cent, per annum, and that the law pro
hibiting the declaring of dividends during the
suspension of specie payments, be rendered
more effectual. It is understood that several
banks in this commonwealth have want only
and needlessly violated this law since their
suspension in October last. It this be found
to be so, on examination, I recammend fur
ther, the passage of a law repealing their
charters, on such conditions as may seem ex•
pedient to maintain the laws ro
protect the rights of the commttilitv. The
idea of a set of ossoLiated individuals . publicly
declaring a division of profit amoung them
selves, and re:using at the same time to pay
their just pebts, is revolting to every principle
of common honesty and good morale. If the
laws of this commonwealth are thus con
temptuously trampled on, without the poor
pretext of necessity urged in behalf of the
act of suspension, I think it is time an exam
ple was made of the offenders, to vindicate
the lrw, and to punier' their temerity.
1 also recommend that more effectual pro
vision be made to compel the banks to fur
nish full statements of their condition to the
auditor general, or to the bank commission.
ere, should the legislature enact a law fur
heir appointment.
l';:e principle of making the stockholders
. : „ zlteir personal capacity, for tne notes
.. •••
'•
of the bani.. case the corporate funds he
..
inadequate, and equitable; and if
the legislature can dejse
.practicable mode
of bringing it into operOon, I will most
Those
cheerfully co-operate withThosewho share the profits of loaning their c_
should be willing to share the responsinJity
of making that credit good.
The foregoing recommendations and seg.
gestiona, and it adopted, would, in my opin
ion, tend to correct most of the abuses and
evils of our banking system; strengthen the
banks themselves in the confidence of the
people, and secure the pnblic against loss and
imposition.
J will add, that I think a total seperation
between the state and banking institutions
ought to take place. The associations of
private individuals with the state, in
banking institutions, results almost enti
rely to the advantage of the homer. What
ever hopes might have keen founded un
such associations, by the legislature that
the banks thus owned would be at all
times ready to aid the Commonwealth,
have been illusory. Although the state
owns 3750 shares of stock in the Penn.
sylvania bank; 5233 shares in the Phila
delphia bank, and 1708 shares in the
Farmers and Mechanics' bank, :yet she
has not a share in the direction of either
as to control and of the proceedings, and
derives uo benefit from the partnership.
Her capital is used by her individual as
sociates for purposes of private gain anti
spec a lotion, and the commonwealth,
when she wants money, Is compelled to
look elsewhere. I therefore recomniend
the passage of a law authorizing the sale
of the state's stockjin said banks, at such
time and in such manner, as will yield the
greatest amount to the state; or if it be
found that such asle cannot be made with
out too great a sacrifice owing to adverse
circumstances or other causes, that author
ity be given to declare their charters an
nulled, and to divide the assets among the
state and private stockholders. The o
pinion is rapidly gaining ground in this
country, that direct associations between
governments and bunks, is neither advan
tageous to the parties i:onceroutl, nor safe
to th , a 1.4b11c. Cares , ;Lnt:..!!y
depend oti
commerce Littitins, and are
so liable to be infieei.c,J by those ininetry
,convia/4ions and embarrassments in Eu
'rope, which operate with increased fort,
since the telations uE bustness have be
come so iat;mate, anti the cote mo
is rendered so easy by mutton intprhve
meats on the ocean, as to form very it.-
proper depositories fur the money of the
people, and a very insecure basis fir the
public treasury. . .
The measure of establishieg an inde
pendent treasury for the general govern
ment, with such multiplied securities and
guards fur the keeping of the public mo
ney, as will render it safe and ennveni•
tmt fur the use ut the government, has
been impetitively called for, and justified
by recent events. Public sentiment is
setting in its favor with unprecidented
strength, and there is every reason to be• i
lieve, that the laudable efforts of the Pies
ident of the United States on behalf of it,
will be successful. Among other reforms
of our resell banking system; I
,do nut
consider this as the least. It will remove
from the banks many temptations to ex •
tend their business to an unreasonable de
gree, it will check foreign importations;
it will save the community from the inani• '
fold evils heretofore suffered in conse
quence of the governments withdrawn
hunt the banks large amounts of its funds:
therein deposited; and will place all the
bankson an equal looting, by preventing
the exercise of that partiality or indul
gence, which may very readily be used to
strengthen and uphold particular banks,
at the hazard of crippling and breaking
up others. Under whatever aspect we
view it, it seems to me to be a measure,
both of wisdo:n and necessity, which
sooner or later wiil meet wilt universal
assent.
f also recommend that thorough loves)
Itigation be made into the facts, ultether or
net any of the banks of this common
'wealth have charged and taken illegal and
u ormus interest, either directly or
throng!' the Action of bills of exchange,
lor by setting' apact. portions of their fun ds -
to be used by ,o tt iou t :-.es or other persons
for such purposes. I havLl reason to be
lieve that all or some of these i:."trigs have
been done by certain banks in the city of
Plulatletplia. And if it should be ase,,r
taint' on investigation, that such is the
ease, I recommended that the charters of
those banks, which have so acted be re
peated, for this gross and unjustifiable vi
olation of this salutary law. I have also
been informed, that certain banks in the
city of Philadelphia. have neglected or
refused to observe the provisions of the
42 section of the act of 16th April, 1833,
relative to the rotation and elect"-
bank directors. This law •
.egard as
gs it should appear
wise and salutary.
on Ingtur
it has been wilfully disre
,
garLu by any bank or banks subject to its
operation, I respectfully suggest the pro
priety, of passing such a law on the sub
ject, as will effectually prevent future vi
olutions, and punish past transgresions.
, .•. •
Saving instieutions and loan companies
have increased greatly in number and im
portancein this commonwealth within a'
few years. Great complaints have been
made, especially in the city of Philadel
phia against their mode of doing business
It is said that they, or some of them, have
taken illegal and usurious rates ut inter
est--that they have dea:t oppressively
and illegally with their debtors and cos
tourers—and that they have contributed,
in some measure, to aggravate the evils
and embarrassments produced by the con
duct of the banks. I recommend strict
inquiry into these and other allegations
against them, and if found to be well
grounded, that the charters of all that
have thus acted be repealed. It is not to
be tolerated, that these creatures of leg- -
islation should set the law at defiance.
I also recommend the passage a law
!Ile more adequate prevention and
-sunisin:ut of frauds and fradulent brea
l•
ches 9f trueby officers of banks, collec
tors of ptou , and all other receivers
and disbursers of pu:.:9 nll.rneYe: e •
cent experience has shown, that t;:yil lia
bilities are altogether insufficient to pro- •
tect the public from fraud and imposition
by these several classes of officers. lam
not, in general, in favor of multiplying
penal law, and thelpeculiar temptations of
forded to these officers to transgress their
duty, and the hope of impunity, arising
from the mere civil responsibility to which
they are subjected, call for the special in
terposition of the legislature. Instances
of delinquencies have occurred within a
short period in which not only has the
commonwealth must probably sustained
considerable losses, but numerous private
persons, little able to bear the consequen
ces, have been deeply affected, and in
some cases entirely ruined. The perpe
trators of these deeds should be taught,
that our penetentiaries were constructed
for the reception of such inmates like them
selves.
Considering the various banks in this
commonwealth, incorporated at different
times, on different principles, and of wide
ly different amounts of capital, it might
perhaps seem expedient to some that 1
should recommend discriminating i i legis
lotion, applicable in its penal consequen
ces to some and not to all the banks alike.
It will be seen that several of my recom
mendations though expressed in general
terms, will operate on particular !banks
only,—l have not been able to percieve
any .good reason for making discrimina.
tiny recommendations. 1 thik on the con
trary, all banks in a sound condition
'should stand on the same basis, and be
subject to the same general regulations.
ueh of my recommendations, as are ap•
plicabla to particular ranks, are intended
to btirg all, within the operation of the
same rules and restrictioas. The laws
should be made strong enough to control
the most I owe: lid, .Loy will then be so
to be sit ong enctigii to con tot d o; et.c.
er ones. The principles of ban oi:
large or small capital is prcsisely the sail,:
in its influence, except the ditkrelice
degree, upon the human character. Th.
pc-au:A gain at the least expense, is U.._
ruling motive of action iu both, and swa . ) •
• with the same poWer, the bank of one lion
dyed thouuand dollars capital in a cuuntr , ,
village, ae the one of so many millions in
a great commercial tile ti °polls. The
w hole difference consists in rite influence
and power of these re-pective institutions
I think the recommendations I have mane
if incorporated into the charters of the
most powerful banks in the common
wealth, will bring them within the !imme
diate reach of the legislature and the law.
In that condition, they will be humbled in
their lull less ',retentions, and .stripped of
their ability to set at naught as they have
done, the will oldie people. As we can
not get rid of the banks altogether with
out the most serious losses, and income
mences to the public—the extent of 0 hick
can be but impel fectly complicit, 011,n
we consider (Wait would most certainly
reduce our circulating medium very con
siderably, and that tile inevitable conse
quence of such reduction must be to de
preciate our farm lands to one half per
taps of their present value, and all other
property in the saute proportion; increase
in effect, our state debt in a correspond
ing ratio, and individual debts in a like
relative degree: I find in these things mo
tives of no slight weight to my mind fur
urging steadfastly upon the legisluture
the adoption of the suggestions and meas.
urea which I have proposed. Or at least
if other measures should seem to them
preferable, that they should be those of a I
kindred bearing.
I dismiss the further consideration of
our banking system, fully convinced of
its manifold imperfections, and abuses,
and reiterating the hope and the assu- ;
ranee, that this legislature will not sepa• i
rate, till thorough and searching reform,
has hunted out its imperfectiyns, and cur
rected its a`mses. It is fortunate for the
public that the banks have either volunta
rily, or in the natural course of their own
delencive or,;atuzation, placed themselves I
in a condition, where they not only can
not dispute the policy and justice of
form, but must in self defence. 50! , , t0 t h e
lon an J
truth of the very
,dectt,..,, On this
ject, for which Cis sub
lung
Timeormlc
awl sy
.. necessity are powerful reasoners. In
this instance, they convinced even those
who were interested to resist !their con
victions and I accordingly trust, that the
legislature will proceed at once, and con
rogeously, to the accomplishment of this
great, salutary, and long exnected work.l
The public improvements of this com
monwealth, constituting one of its princi
pal resources, as well as as objects, of ex
penditure, must be regarded rs a subject
hardly second in importance to the fi
nances. 'fills system has gradually
grown up to its present magnitude within
the last fifteen years. The internal im
provements of Pennsylvania now consist
of the following number of miles in actu
al operation, to wit, 6 8k lines of canal
and slack water navigation,and 118 miles
of rail road, making together 728 k miles
completed, and now in use-20;1 milesl
tof canal and slack water ;nav igation have
been commenced, and are in a state of
considerable progress.
The following number of miles have)
been suspended after expenditures to'
some amount had been mad upon tnem, to
wit: forty seven miles and slack water .
navigation, and twenty two miles of rail
road.i
1 beg leave to refer you to the message
which I had the honor to transmit to the
last legislature, on the 26th of January
1839, as containing a fall and explisit ex
position of my view on the general sub.
ject of our internal improvements, and to
•i;.ie rept Of the canal commissioners for
;bladed statement. f. , f the operations up
on them, during, the pti ear,
with their [condition at the present time.,
; It is due to these officers to state, that,
their duty has been performed with much
ability and efficiency, and that their opin
; ions and recommendations are entitled to
respectful consideration.
bn
this occasion I will merely refer to •
such facts and considerations, connected
with this subject; as appear to me to be
essential to the proper understanding of
its nature and bearing.
The internal improvements of this con
monwealth have been constructed at an
aggregate cost of ,twenty six and a halt
millions of dollars—and when we consid
er that the surface of our teritory is diver
sifted and broken by nnmerous chains of
mountains and by rivers, to a greater de
gree than that of almost any state in the
Union, we must regard our system of in
ternal communication undertaken by a
community distinguished for it , prudence
economy and simplicity of character, as
standing without a parallel in modern
times. The enterprize and perseverance,
of the people 3f Pennsylvania have ena
bled them to .achieve these astonishing
triumphs over the barriers of nature, and
the obstacles incident to their condition,
more formidable still. The great system
originally projected, is almost completed.
In its progress, it has been subjected to
few other fluctuation, and drawbacks,
than arise from pecuniary embarrassments
and from these errors of judgment, and •
accidents of legislation, that are to be mat '
orally expected, from the want of experi
ence en the part of those who directed its
operations, and from the numerous con
flicting local Intereata that prevailed in
the legislature.
lit addition to the payment of the inter
..tr on the public debt, and pro, iiling fur
.m payment of a loan [ann.; due, a util•
a of dollaro itt least, it II be needed
•••r repair,, during the prvst , nt your; for a
• itisfactorary:explanatton of 'winch, l
rE
,o•r you to the report of the Canal Com
nissionets. In vit.tv*,:of this state of things
•he question to distinctly pi eoeuted to the
;ogisiature, st !tether the works naw in pto
.;rent of completion shall, or sited! not he
finished, at the present hull?
(to these several hues 01 improvements
;1m Itilltowing sumo dot i ntone). have Omni
rppropriated and nearly expended; viz
Erie extension, 51,566,666 60
North Branch extension, 1,3-10,666 06
11 isconioco feeder, 210,000 00
Road to avoid the inclined
plane at Columbia, 199,000 00
the most careful estimate of the
cost of completing these several lines, the
following sums will be required, in
addi
tion to the appropriation already made,
viz
For the Erie extension, $2,114,527 85
For the N. li. extrusion, 2,181,535 54
For the Vs iseonisco feeder; 166,193 43
And fur the road to avoid le
inclined plane at Colun.bia, 91,144 97
From this statement it is evident, that
should the legislature determine to SUS
pend the completion of these works, the
sum of 83,322,535 52 expended on them,
will be lost; or should it be determined to
proceed forthwith to the complesion of
them, the sum of $4,553,905 79 will be
required fur that ?purpose. Upon a full
consideration of all these circumstances,
together with the additional fact that these
respective works will be worthless, till
the whole of each be finished, it is for the
legislature to decide what course /sound
policy and official duty call on them to a- 1
dept. The who •e of these lines might be
completed, if sufficient money be appro•
printed at this session, within two years;
and a portion of them during the approach
ing
summer.
In addition to the foregoing work in
state of prog ress , the following hav e b een
suspended by the legislatt:re, after ex•
'pending on cath. ll “ o sula respectively
set down viz:
tt,ysbl:',.; rai l r o a d road, SGS6
'''' ,666 67
'7..entalioning extension of
the West 1.1. - canal, 164.000 CO
Allegheny feeder, 00,000 00
It will not, I presume, be thought ad.
visable by any one, to re-conununce any
of these works under existing rireutustan
ces. Thu first has must probably been
suspended forever.
I took occasion in both my inangoral
addresses, and in the message of 26th of
January last, before referred to, and to
announce it clearly as my deliberate upin
ion, tha, after the completion of the works
then in a state of progress, anti so ads so
ced as to render it less wise to suspend
than to prosecute them with vigor, it
would be time to pause to our improve
ment system, till we could[ judge of it by
its fruits. The experience of the past
year, has greatly strengthened this opin
ion, and satisfied my mind beyond all
doubt, of the manifest impolicy of under
taking any me.v works whatever, at the
present juncture. I deem it an act of
simp!e justice to the legislature, to inv.'
prise them that this is my thorough con
viction of my duty. Should the legisla
tote think proper to prosecute the works
now In progress to immediate completion,
I . respectfully suggest the propriety of pro
voting at once for the whole amount re
quiaed, as to enable the canal commission
ers to execute them in the speediest and
cheape3t manner, and also I would fur
ther suggest the mistaking policy of post
pacing the passage of so important a bill,
as that for 'prosecuting and repairing the
public improvements, until the close oldie
session. Much is lost by the delay, and
nothing gained. By this procrastination
not only is invaluable time lost, lint bills
are sometimes necessarily permitted to be
1 clime laws that do not meet the entire ap
probatitm of all departments of the govern
merit, whose duty it is to sanction them.
Suco tvo the case with the act of 19th of
July 1859 ei7titled "An act to provide for
the ' reprirs of
4 4 e several lines of canal
and railroad, and tu , Continue the improve
mints of the state." rut very impor
tant bill did not prss, until; the last day
of the session of the legislature, at:' l It Was
nut presented to me for my signature, un
till the legislature had actually adjourned
sine die. Had it been presented to ins
during ' the sitting of the legislature, I
frankly say to you, it would nut have re
ceived the executive approbation. But
When it came 0 my hands, there was no
remedy, I was compelled to make choice,
between what I regarded as evils, either
to refuse my assent to it and suspend the
pro.ecution ofthe public Improvements,
net only those in course of construction,
but to arrest those in a state of use—or to
approve of it, }though conferring highly
objectionable powers and privileges on
the banks taking the loan authorized. I
held it under censideration for nearly a
month, and was finally induced to sign it,
in order to prevent the serious evils that
would have resulted to the business of the
country and the character °lour public im
provements, hail there been no provision
made to repair and continue operations on
them at all—The same paramount con
sideration also induce me to take the loan
authorized from the bank of [the United
States of Pennsylvania, which institution
as was to be supposed, would seek to avail
itself orally advantage the legislature had
bestowed on those who furnished the loan
Every other expedien to procure the mo
na was first tried. The usual 'advertise
tnents of the loans produced no bidders—
letters addressed to all other banks in the
city of Philtdeli:hia,
cess. In this cirwr:,oncy, tl.e only
satires, presented. Ac-e either to susp
mr all the improvements, slap th e l on ,
lives and draw the wa'er ill canal:
to obtain loans WI: 1101 :Zed by the
from the Bank of,:,the United d itates
reructantly slop?'! the latterelie,
it to be as a que,.ton rather of extram
ry than constitutional principle, mote
ionnible to my duty, Gan the former.
To almd hereafter a reasonable opt
tunity to th,,Executive, as well as to
two houses of the legislature, to consi
decide tyre whatever bills relative to
pubdc,imp,rovements and so loans
pass these bodies, I hope they will be
sorted to me in time to act in con
with them, or to enable them to judge
themselves in their constitutional c a p s
wheneVer the rrovisions at such laws
not happen to meet my entire approbal
Thus only can die independence of r
derartment Le preserved, without d•
so at the expense of the public enter
ned 'thus alone can the responsibilit
each to the people be rigidly enrol.
without cm Ong a portion or it on
other. I shall never shun any resin
bility whatever, thatjustly devolves
irre,Lut I do not desire to be placed
situation, as a public officer, where
approe or disapprove of particular ut
ures, not on the ground of their intri
merits or demerits, bet because Ly th ,
lion ofa co-ordinate branch of the guy
nient, I have been preelvded from a
and unfettered course of conduct. '
certainly does nut accord with the
spirit of our government.
Keeping in view these various eirc
stances and interests, the question is
serried to the consideration of the leg
,cure, how is the money to be procurer
pay the interest - on ol e state debt; to
the seueral lean s falling due; and ti
tray the ether necessary expenditure
the memonwealtla However fore'
ale the difficulties we must encou;
there is no avenue of escape from I
responsibilities left open to us. We :
meet them without shrinking, or post
uncut. The sum of 2003.000 du
must be obtained for the year follow
By the sale of the stock held by the c
monwealth, in the Bank of Pennsylvn
Philadelphia Bank, and Farmer's and
chante's Bank, the sum of two null
one hundred and eight thousand s
hundred dollars may be realized, b
will require lime to carry this open
into either. The sum of 600,000 dc
twist be had on or before the first d:
next month, and the balance durim
remainder of the year. Nothing ca
expeoted from other sources—even
loans would, perhaps, fail to answe
present exigency. What then retrial
be done? Ali own deliberate opiffie
that resort to taxation, provided th
shall be so regulated as to bear wi
little hardships as possible on the pc
is the only possible remedy to exti
the commonwealth from the ember
ments by which we find her surrount
In stating to the legislature the ge
resources of the commonwealth, 1 k
to be my duty to refer to you, withal
commending it, to another remedy,
may put the evil day off fora time, s
the legislature think !limper to ado
By the act incorporating the bank a
United States, that institution is but
10211 to the' commonwealth, at fon
cent, interest, six millions of dollars
required by law. It will be for tht
'stature, alter examining into its co
and condition, if taxation be deeme
politic, to determine whether this
shall be called for from that bank—
so, to appropriate the Caine specifica
payment of the inteaest on the state
and to the immediate completion t
main lines of canal under contract,
' , state of forwardness, and to no mile
poses whateuer. In expressing my
opinion in favor of a resort to taxat
do it w:th no inconsiderable degree
luctance; but it must be obvious to
citizen of the commonwealth, th
house, his farm, and his property a
pledged, beyond possibility of relt
the ultimate payment of the state
and the interest thereon accruing, a
bly to the stipulation with the loan
ers. Nor is this tha worst view
situation.
The state has been actually comp,
,zyearspast, from a million to a mii:'
a h a il 6.finteaest annually; and the (i
is now subioittcd whether we are
continue adding ;ialf yearly, this en
amount of interest to the principal
state debt, and continue in the pusill
course of policy from year to year, c
fling oft' the evil ' day, and eetalhng chts
ful legacy to posterity. It is a repr,
thepeople of Pennsylvania to su pp er can longer be kept is the dark, in rc'
the situation in which we find them.
All the,( want to know, to ensure a
compliance with the indespensibin ca
their patriotism, is to know the nece
the measure. The experience of ma
half a century, fortifies me in the b;li
the good sense of the people of thi
commonwealth, isliarely appealed to
In assuming the responsibility of rte.
ding this measure I am fully sensible
is to be encountered, and aware of
sequences that are to follow; and if
expression of the honest convictions
own mind, and tile fearless discharg
duties incumbent on me, I shall not t
out by my fellow citizens I shall at le.
the consolation to know, that I ha
that Which I conscientioutfly belies
right, and which I think will bear
flection of after years. The time
sins is gone; the public mind has b
long fed with miserable expedient
time fur action is at hand. Our
expects every man to do his duty,
that has not nerve enough fm th.
should give place to those better I
, the emergency. Neither the prose'
' lature, nor myself, had any thing t: