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IJV GJEO. W. BOWT?AX. NEW SERIES. GOVERNOR S MESSAGE. Jo Me Honorable, the Senate, awl House of Representatives of the Commonwealth of Pennsylvania, in General Jhitmhly met: GcxTt.KMKX : Whilst the events of the year just closed, pre sent many causes of joy and congratulation, and afford abundant reason for thankfulness to a ben eficent Providence for his goodness and mercy, cur prosperity and happiness, as a people, I re .rr. tto sav, has not been unalloyed. The gen eral growth of the country, the pi ogress of the arts and sciences, and other causes of moral and social comfort, have not, it is true, been inter rupted : but the loss of valuable lives and pro perty, bv the casualties of the elements, has been unusual? froth in number and extent: and in certain sections of our Commonwealth the afflic tions of pestilence and dis-ase have also been sorelv felt. Nor should we estimate lightly the suffering that manifestly exists amongstihe poor in our cities and towns. The drought of the season deprived the busbardman, to some ex ten!, of the anticipated rewards of his labor, and lessened the means of human subsistence : whilst the depression in monetary and business affairs, has deprived many laboreis and mechanics of their usual earnings. The means of subsistence are thus greatly enhanced in value, at the same t,me that the opportunities of earning them are mucli diminished. The field for charity is con sequently wider than usual : and to meet its r. ;b ,nable demands on the part of those blessed with an abundance, will be to sustain the chris tian character, and measurably to mei it the con tinued bounty of Heaven. flie operations of the Treasury for the last year, will he presented to vmi in detail, bv the iiead of that department. The results are high ly satisfactory, showing a steadily increasing revenue from nearly all the ordinary sources. The aggregate receipts Mr the fiscal year of IS.">4, including loans and the balance in the Treasury, on the 33th of November, 1853, a nwunted to the sum of $(>,(>65,912 01. The gr iss payments for the same period, to the sum o! n.">,424,1)83 29: leaving a balance on the 30th of .November, of $1,240,929 72. The extraordinary payments consi-ted of the t II wing items, to wit : loans repaid, $235,- bsS 40 ; to the North Brar.cli canal, $206,552, 7n: to the construction of the new railroad over the Allegheny mountains, $461,921 0-3; 1O the payment of debts on the public works, $389,91.6 38. Of the balance remaining in the Treasury, a portion is applicable to the payment of the State debt, and the remainder to current demands. The simple or ordinary operat ions of the Treasury for the same period, were as follow, to wit: the receipts, exclusive of loans and the : dance in the Treasury on the 39th of Novem- her, IS">3, realized from permanent sources, a. mounted to the sum of $5,218,099. 00. The < dinarv expenditures, including the interest ori th-State debt and ai! the payments on the finished lines of the public works, excluding the payments on new works and loans, amounted t > -SKI I('• ,74-f- Sk; being $1,101,190 If), !< ss than the receipts. This statement may be regarded as the work ings of the Treasury simplified: and as establish ing the gratifying fact, that tiie present reliable revenues of the State, exceed the ordinary or unavoidable expenditures, over a million of dol lars : and that, relieved from tiie demands fir tfe construction of new improvements, the treasury could pav a million or more of the t 'lie deft annually. It will also be perceived ' it the income from these sources is steadily increasing. For instance, in 1846, with the ' ■ tax at present rates, and the same extent :ii pr vi merits in use, with nearly ail the pre - ot sources of revenue in operation, the gross receipts amounted to but little over three and a half millions. No more reliable estimate of the operations 'fthe Treasury fir 1855 can he made, than is furnished in the results for 1854. The ordina ry receipts may he safely estimated at a million of dollars above the unavoidable expenditures. A portion ol this excess will be required to com plete the new Portage railroad, and the Noith i ranch canal: and th" remainder should lie faithfully applied toward the payment of the Slate debt. Tlie aggregate receipts on the public works 5 " t'a? jiast year, as repoired by the Canal ' mmissiotiers, amounted to the sum of $1,876, 8S; and the expenditures to the sum of Nl, 101,570 54 ; leaving a balance of $774,- "■'S 111. from which, however, should be deduc ted th" stun of $37,900, properly chargeable to 'he year, for new locomotives and other unavoid able expenditures—thus reducing the net pro ids to $736,60S 34. If we add to this, $131,- 1 "'6 00 received from the Pennsylvania rail ' *! company for the three mill tax, which is < aimed by some as a part of the income from ;h p-uhlic works, we find a net revenue of J svi.,s)oo• a sum equal to the interest on seven !,f 'n millions of the five pet cent, debt of the v iatr. The aggregate receipts were $57,121 than for the year 1853, and the reduction ' expenditures amounted to over $159,287 00. 'i" withdrawal of the business of the Pennsyl vania railroad from the Portage road, readily accounts for this difference. Viewed in every aspect, this exhibit is grati :>tng. } e\v similar systems of improvement in country can present a more favorable pic hire. • Some of them, in other States, have re- C'Utiy been reduced toa condition of virtual in- The increase of business on the State rks fir the two last years, has exceeded our ai 'ticiprtions: and hut for the necessity which retried to exist for a reduction in tolls (o meet |'-rrouiiding competition, the revenue would ave been largely increased. The general '" jveinent now on foot amongst railroad com ! aiiies. to advance these rates, may perhaps re lieve th" State to some extent in this respect. ' he Delaware division makes a most gratify- The gross receipts counted $365,- "■*' ''7, and the expenditures $50,738 67, showing a net profit of $305,58S 40 ; a sum e- j qual to the interest on six million of the public 1 debt, and to 20 per cent, on the original.cost of the work, including the expenditures tor new locks. The North Branch canal and the Columbia railroad also present favorable results. The business and tolls on the former have increased with marked rapidity : and the management on both these branches bear the marks of skill and : economy. The expenses on the Allegheny Portage road have been largelv reduced, and j the business better regulated than at any former j period. As a whole, I feel constrained to say, i that the condition of the public works has been • improved during the last year: in no other par- i ticular, to so valuable an extent, as in the mat ter of contracting debts, which it seems has been almost entirely avoided. The officers on the respective lines report that they have paid all expenses; and some of them have gone s> far as to say to the Canal Board that they will be personally responsible for any debts that may hereafter be discovered. This is truly ti great reform—for nothing has cost the State so much, j as the pernicious practice of making debts on the put,lie works; I still think it should be in terdicted by positive law. In my last message I gave rnv views at length, j as to the principles and rules that should con trol in the management "f the State improve ments, and 1 need not repeat them in this. I would respectfully suggest, however, that so much of the law as binds the Canal Commis sioners to a fixed rate of tolls for the whole sea son, should be repealed. The officers directing the operations of the public works should, it ' seems to me, be left free to meet the exigencies tn trade and commerce, as they may arise. The work on the mountain railroad lias pro gressed slowly, and it is obvious that it will not lie fully completed before the summef of 1835. J n>ust confe.-s myself sadly disappointed as to the time and money consumed in the construc tion of this work. The expend it lues, since I came into office, have greatly exceeded the whole amount estimated as necessary to complete the line : an ! yet, it is but justice to say,-that the Pennsylvania loalroad, Iving parallel with it, has cost a still larger sum per mile. I have endeavored, during my service, to ' guard against the commencement of schemes ot this or any other character, to entail future lia bilities on the Treasury. This ought to he the. settled policv of the State. ,\o new improve ment!? should be undertaken, upon any pretext whatever. The payment of the debt, and that only, should absorb the surplus revenue of the Treasury. If this policy he pursued, no other financial scheme, to pay t!m debt, will be ne cessary. The large annual surplus will reduct II.•> State's indebtedness with sufficient rapidity I regret, exceedingly, the necessity ofannoun ciiig to you that the North Branch canal i - not vet in full operation. It is now more than a year since the Canal Commissioners*'directed the water to be let into the main trunk of that improvement, and declared their confident be lief, that it would he in successful operation bv the middle of last summer : but their sanguine expectations, as weli as those of the people, have, in this respect, been sadly disappointed.— A variety of unfbrseen difficulties presented themselves in th- way of the attainment of this end. The old work, constructed some twelve or fifteen r ears since, as well as some sections of the new , located on the lull side, near the mar gin of the river, w hen tested bv the admission of water, turned out to In* porous, and totally in sufficient in its material and formation. Jn some instances rocks, tiees and stumps, have been concealed thus presenting but a slight ob struction to the passage of the water out into the bed ol (lit river. This is especially the case in much of the old work. Jn ail such sections or places, no remedy, short of a reconstruction of the bottom ol the canal, could prove sullicient: and thi* was necessarily a tedious and expen sive piocess. There isftill a considerable por tion of the work to remodel in this way; hut it is confidently believed'that it will be readv for use iu the t.irlv part of the coming season. That the utmost skill ami vigilance lias at all times been exhibited by the agents of the State, on this line, I do nut believe; but the deficiency, in this particular, on the new work, has not been so palpable as alleged by some. Indeed, since Alay last,great energy has characterized the management on this line : the President of the Canal Board having devoted much of his time to a personal supervision ol the work. But it is obvious, no degree of capacity in the State's a gents, for tiie last year, could have overcome all the difficulties that were encountered, with sufficient celerity, to have entirely satisfied pub lic expectation. At the tin;*- I came into office, the sum ne cessary to complete th:is work was estimated at $772,01)1). Sine-.* that time trie sum of $ 1,20G,- • r )n2 72 has been expended, and it will still re quire, as estimated by the Canal Board, SOO,- 000 to put it into complete operation. Whilst I regret this unforseen cost arid de lav, I cannot refrain from repeating my mn(al tering confidence in the wisdom of the policy that dictated the completion of this work. The large increase of business and tolls for the year juSt closed, on the old portion of the line, indi cates what we may safely anticipate from the new. and, I cannot doubt, that the gross a motint of business it will command, and the rev enue if will yield, will exceed the most sang uine expectations of its advocates. The inex haustible mines of coal with which that section oft he State abounds, the products of which are destined to JKKSS through I Ids avenue to a limit less market, witi furnish for it a never tailing supply of business and tonnage. Besides, its completion will be an act of justice to the in dustrious and enterprising inhabitants of that part of the Commonwealth, who have hereto fore willingly contributed towards the construc tion of the other improvements of the State from which they could derive but little advantage. It will also add to the general prosperity of the adjacent country; to the value of property, and BEDFORD, PA. FRIDAY MORNING, JAN. 19, 1855. I consequently to the revenues of the State. At the time of my induction into office the funded debt, including accrued interest, amoun ted to the sum of $40,154,457 48 Add to litis the loan of April, 1852, to complete the North Branch Canai 850,000 00 $41,004,457 48 Deduct payments as follow : J: t rest on outstanding : certificates $50,0G3 39 | Receipts to the sink- I ing fund up to this : t itut— 1,057,856 15 Tot a I funded debt, $39,900,537 94 The floating debt and unpaid appropriations at the period already indicated, $1,421,090 15 Deduct the available balance then in the Treasury, 750,000 00 $671,090 15 The floating debt,temporary loans, unpaid appropriations, except for repairs after the Ist December, 1854, ' 1,63:9,000 00 ' Balance in the Treasury Novm j ber 30,1854, after deducting tile amount applicable to the old pub lic debt and the relief issues then on hand, 865,029 00 Balance: $765,929 00 During the same period the following appro priations and payments have been made toward the construction of new improvements, to wit: For the re-construction of the Columbia Railroad, $514,407 66 For the new railroad over the Allegheny mountains, 1,117,953 93 For the completion of the West ern reservoir, 52,388 00 For the North Branch canal, 1,206,352 76 Now locks on the Delaware 1 division, 100,319 99 Sundry special payments, 65,353 71 $3,086,778 05 j , The foregoing figures exhibit the astonishing fact, that the Treasury has been annually pay ing over a million of dollars towards the con struction of new improvemnnts, and at the same time accomplished a small reduction of the pub ' debt. As made my duty, by an act of the Legisla ture, approved the 27th of April last, providing for the sale of the main line of the public works, sealed proposals for its purchase were invited, up to the first .Monday of July last. No ' offers were made under this invitation: and public notice was again given, on the 14th of November last, in accordance with the 29th sect i m of the act, for proposals, to be submitted to the General Assembly : but none have h-en ; received. This improvement is, therefore, still the property of the-State, subject to such disposition as the Legislature may deem neces sary. Mv mind has undergone no change, on the subjeet of setting the public..works, since the period of mv last message. I think the policy of the measure depends mainly upon the price that can he obtained, and the conditions on which purchasers rnav he willing !" hold these works f r the use of tin* public. With a full and fair consideration, and on terms amply pro tective of the rights and interests of the people, in the future enjoyment of these highways—a sale might not prove injurious to the public weal. Kbit it is certainly neither wise nor politic to assume that they must he sold for whatever ran tie obtained : or that they should, in any event, be given aw ay. Nothing could have a more prejudicial effect up n the inter ests of the State, as involved in these improve ments, than the avowal ol such a determina tion. Nor is it less unwise to disparage the value of the Commonwealth's property, n! the very moment of putting it in market for stile.— No intelligent private citizen would so act, in reference to his own estate. He would hardly give notice to capitalists, in advance, that he would sell his farm for a lair price: hut if un willing to pay such reasonable consideration, they could have it for half the money. Nor would such a person proclaim, that of all the farms in the country, his was t he least produc tive. It is certainly the wish of many good citi zens of the Slate—perhaps of a majority—that the public works should he sold : but this de sire is evidently based upon the* assumption fhat the measure would he one of real econo my—that it would lessen, without the hazard of increasing, their annual taxes. The real ization, of such an object, it must be perceived, then, depends entirely upon the price and terms. Those who desire a sale, certainly ex pect tiie State to he the gainer bv such a mea sure. No other important, or sufficient reason for parting with this property has been assign ed. Jf is usually said that the works should be sold to pav the public debt and lessen the bur thens of the people ; but it must be observed, that a sale might he made at a price far too low to effect such purpose; and if so, to give them away would be still less likely to produce the desired result. Should ihe gro.ss sum received, not be equal to that on which the nelt earnings would pay the interest, then the ellect would he to increase, rather than diminish these annu al burthens. This is not what the people desire to accomplish by a sale ; nor will they be satis fied with such disposition of their property. The real value of the public works, is a pro position full of difficult v ; and I doubt not the General Assembly will approach the inquiry, duly impressed with its importance. Ten mil- Freedom of Thought and Opinion. lions of dollars was fixed, by the law of last | session, as the price for the main line. This minimum is said by some to be too high, and ! the failure to sell, regarded as the* consequence. ; Others attribute the absence of bidders, to the ' condition of the money market—to the strin gent restrictions imposed upon -the law : and to thai efforts that hac! been previously made to dis parage the value ofthe line. But it is obvious \ that more than one of these causes may have' operated,.; and a greater than all may have ' tiefn, the hope of getting this property on bet- ' ter terms, at a future time. 1 feel very confi dent that the latter consideration was not with- * out its influence. But, he this as it may, it is ; certainly wiser to fail to sell from any one of these causes, than to hazard the works in the : market, without anv restriction or limitation as to price or conditions. A bad sale would as- I suredly be a greater misfortune, than no sale at ! all. The benefits resulting to the people from these improvements, have been numerous ami diversified. They have facilitated trade and commerce : stimulated productive industry in ewry department: and have not only enabled the farmer to reach a ready market with the i fruits of his labor, but have furnished conveni ent out-leis for the rich mineral treasures ofthe State. Without them, the miner wguld be de prived of his occupation, the transporter be left j in helpless destitution, and the Commonwealth | itself be permitted to retain a parsimonious pos session of vast masses of natural and unprodiic- I tive riches. Our predecessors were wise in : opening these avenues to trade and commerce; and if we wish to he rated wise hereafter, we shall not rashly and hastily throw away the ad vatoges of their future use. This use, to the full ystent, in the event of a sale, ran only be secured hy a jealous protection of Ihe right of the people to enjoy it. The very first condi tions of such a measure should he, that the works and every ( ranch of them, b" kept at all times in good order and in operating condition, and remain forever public highways, for the use of ali persons who mav wist) to transport goods or merchandize over them, upon rates not great er than those charged upon other similar, im provements. No corporation should get pos session of these valuable avenues, on such con ; rl it ion c as would enable it to impose unreasona ble burthens on the interna! trade and tonnage ofthe State, or in any way to encroach upon the rights, of the individual citizen. To obviate : such results, the powers, privileges and reslric- I 'ions of any corporation getting the works, should !- minutely defined. Past experience suggests these prudential counsel- Awe have , ofF-wi *weo in thto Stat*s how dflUfb it is to confine the operations of these artificial bodies j within the limits prescribed by the law; and we dioidd iv>t fail *•> profit hy the lesson. By tlie 29ih section of the act ofthe 9th of May last, providing for the ordinary expenses of government and h*r purposes, Nimrod Strickland, of Chester county, John N. Purvi ano', of Butler county, and John Slrobm, of Lancaster county, weie named as commissioners to sefie certain claims and debts against the Commonwealth. It was also marie the duty of tin' G .vi's n-ir to suppl v, bv appointment, any vacancy in this commission which mightoccur. Tim gentlemen already named have declined to i serve. 1 accordingly appointed William W. Williamson, of Chester c untv, Wiiljairi En glish, of Philadelphia, and John (1. Magiil, of We.-tinoreland rountv, in their stead. After a tedious and laborious investigation, these gentlemen have completed the duty as signed to them, and the result will be commu nicated to you, in detail, in their own report, j I regret to perceive that the accounts so ex amined and settled, exceed the amount of the 'appropriation nearly $11)0,000. It is well, however, to see the end of claims ot this char acter: arid having accomplished this, it will lie prudent to guard against the recurrence of a similar state of affairs. Indeed, the practice ot : contracting debts on the public works, should jhe at once and forever abandoned. It has been i a fruitful source of confusion in the accounts, if not of palpable wrong upon the Treasury.— The right to scatter the credit of the Common wealth in this unguarded way, is, 1 venture to assert, without a parallel in the management of public affairs. Of the many defects in the sys tem of managing the Stale improvements, this has been the most productive of evil. In my first, as also in mv last annua! message, 1 most earnestly urged the General Assembly to pro | x id-, by law, that no debt should he contracted | bv the officers on the public works:—that the nec.essasv labor and material to maintain these ' works should be paid for in cash—and that : each officer should be compelled to settle his 1 accounts promptly. The examinations just made, demonstrate still more clearly the neces sity for such reform. Repeated attempts have been made to repeal : iso much of tiie act incorporating the Pennsyl j vania railroad company, as requires it to pay 5 into the Treasury annually, a certain per cent nge on the amount of tonnage which may pass over that road as an equivalent for the privih- j ges granted by the Commonwealth: hut the ■ General Assembly have as repeatedly reject ed the proposition : and I sincerely hope, that j ' s > long as the State may need the revenue j from this source, ail future attempts to accom- j plish this end. may meet a similar- fate. Having been connected with the legislation ! which brought this company into existence, and j clearly cognizant of the motives and purposes, j which governed the Legislature in imposing ; ■ this condition on the grant, I can discover no! reason, in subsequent events to justify the re- j , linquishment of this valuable reservation ; hut i many, on the contrary, to sustain its just ice and j | utility. The discussions pending the incorpo- ration of the company, will best indicate the; i object of this restriction. The construction of | a railroad from Harrisburg to Pittsburg, parallel j i with the State works, was very properly urged j as indispensablv necessary to ineel the wants of the travelling jaiblir, and to enable our metrop- j olis to compete successfully with other commer cial cities. The very first and most formida ble difficulty which itself in the way of this enterprise, wag the prejudicial effect such a work might have upon the business and profits ofthe main line of the public improvements.— It was urged on the one hand, that the State works had been constructed at the expense of the people of the entire Commonwealth—that those residing in the extreme portions of the State, as well as those of the interior, had, an nually, contributed towards the payment ofthe interest on the debt which had thus been con tracted ; and, therefore, the Legislature could not, consistently with the principles of justice and equity, make a grant that would depreciate the value of property which belonged to all, for the purpose of fostering the growth and prosperity of a particular portion ofthe Stat**. Good faith and correct moral principle forbade such action. Co the other hand, it was alleg ed that tlie increased business which such an improvement would throw upon the Columbia railroad, and the enhanced ' value of propeity adjacent to the proposed road, from which the State would derive increased revenue in the form of taxes—would constitute an ample remu neration to her coffers, and thus do full justice to the people as the owners of the works to be affected. But a majority of the Legislature concluded that some additional benefits were demanded, and hence the adoption of the pro \ isiori ! i v hich I have referred. The stock was subscribed with a full knowl edge of this reservation, and the acceptance of the charter by the company, was the consum mation of a solemn agreement between them and the State. Yet, under the specious plea that it imposes a tax on trade, the Commonwealth is now ask ed to relinquish this condition: and the case is argued as though it had been the policy of the law that the company should impose this charge of three mills per ton upon every species of pro perty which may pass over its road: and, in this wnv, it is verv readily shown that on coal, iron, lurnher, and other cheap tonnage, this charge would he too great. Rut the company are not obliged to assess this tax on all kinds of tonnage; nor was it the intention of the act that the}' should do so. The design was to make an ex action from the nett profits of (lie company, for the use of the public coffers, as a compensation for a valuable grant, and thereby protect the public improvements from the competition of this new rival. The tax on tonnage, therefore, was intended to indicate only the mode of as certaining the sum to he paid, and not the spe cific tonnage on which it should be charged.— When the sum is in this way ascertained, it j matters not to the State how the company ob tains the money: whether it be by charges on • freight, or on passengers—on local or on thro' tonnage. Should, therefore, certain kinds of tonnage be improperly oppressed, the fault is with the company, not in the law. And sure ly it will not be contended that the protection thus thrown around the works of the State is unnecessary: so far from this the wisdom and u tilitv of this feature of the company's charter has already been made manifest. The very ex igency anticipated by the Legislature has arisen: the competition of the rail-road is already seri ously felt bv the main line. Relieved from this restraint, hut a meagre portion of the carry ing trade would he left for that branch of our improvements, Nor will it be contended that the Commonwealth does not need this source of revenue. Rut, viewed alone, as a matter interesting to the owners and tiansporters of tonnage, what ■guarantee would they have that the rates of transportation would he reduced, were this tax taken off? None whatever. The company would charge as heretofore, and thus realize the amount of the tax in addition to their present profits. If thev should not do this, their action would differ from tlat of similar corporations un der like circumstances. But to admit, what is claimed, that a reduction in the charges of transportation to a similar extent, would take place, it must be perceived would duplicate the loss to tlie State: for slm would not only thereby lose the amount of the three mill tax, but be de prived of a very large portion of tonnage which would be attracted to the company's road by this reduction in the rates of transportation.— We are thus brought to the simple inquiry, whether the State shall retain this valuable in comp, to which she is so just I v entitled, or whe ther she shall give it to the rail road company. Most certainly the latter alternative should not he adopted, so long as the question of selling the State improvements remains undecided. Asa mere revenue measure, this tax consti tutes an important and increasing item in the annual receipts of the Treasury. In the year JSo.'f, it amounted to the sum of $74,000, and for the year IBf>4, to $131,000. That this amount will be materially increas ed hereafter, is self-evident. If this important item be withdrawn from the Sinking Fund, there will be but little left to sustain its opera tions. I am aware that these views may be met with the plausible argument that trade and commerce should not he thus burthened—that the effect is prejudicial to the business of the State. This is true to a certain extent, and should have its full weight iu the adjustment of a question ot this character. But it will scarcely be conten ted that trade and commerce should be sustain ed bv contributions from a needy Treasury.— On this principle, it could as reasonably be maintained that the State should make no char ges whatever for the use ot her own works. The administration ot Oov. Shunk commen ced the cancellation of the relief issues: and that of my immediate predecessor arrested the process, leaving $650,163 00 of this unsightly currency in circulation. In the spring of '53, the policy of cancellation was again resumed; and up to this date, $4-85,384- 88 had been re ceived into the sinking fund, as applicable to that purpose, leaving the meagre sum of $154>,- 778 12, to provide lor. The gratifying fact TERHS, S2 PER YEAH. is apparent therefore, that, without any furth er legislation on this subject, the entire outstan ding balance of relief notes can be withdrawn from circulation and destroyed during the cur rent year. Tt is true that these issues have not come into the Treasury as rapidly as the funds tor their cancellation have accumulated, and that, consequentiv, a portion of the receipts have not been invested: but this difficulty will be obviated in June next, when the law will go into operation which forbids the banks and receiving officers of the commonwealth tt> pay out these issues, and requires them to be presen ted at the treasury for cancellation. We shall, therefore, soon see the last of a currency which has polluted the channels of circulation for thirteen years past: and T trust that the lesson thus taught has been quite sufficient to warn us against similar errors for all time to come. My opinions on all questions that concern the currency, have seen so often expressed, that they must be well known to the Legislature, and need not be given, at length, in this com munication. Without, at any time, assuming it would be wise for this State, regardless of the policy of other Commonwealths, to dispense suddenly and entirely with banks of issue, it has been uniformly held that the amount ofban king capital as a basis for paper circulation, should be closely limited to the urgent wants of commerce and trade. If the experience of the country is worth any thing at all, it has demon strated the correctness of this policy: and that the use of small Bank notes should be discoura ged and forbidden. In accordance with this view of the subjpct, I have, on past occasions, refused to sanction any extensive increase of banking capital. ' Everv commercial country is liable to alter nate seasons of excitement and depression; to periods of extravagant over-trading, followed by ruinous revulsions. The reaction now felt is the inevitable, if not the natural counterpart of an undue expansion of credit, in the lornr of bank paper, railroad, State and corporation bonds and individual obligations. In those States where the free, or stock-banking system had stimulated the expansion, the workings of the reaction have been disastrous. In our own beloved Commonwi>alth the shock has been sen sibly felt, though far less severe than in other parts of the country. Her partial escape, it is believed, is mainly owing to her prudent and restrictive policy in the use of hank credit. It is, at least, very clear, that had the Iree or stock-hanking plan, at onetime so zealously ad vocated, been adopted jn this State, or had our present system been .greatly expanded, the posi tion of affairs in our commercial metropolis would not have Keen #o.favorable as at present. Had the natural tendency to speculation recei ved this artificial stimulant—the limits of safe ty, like the lessons of experience, would have been passed unheeded: as it is, some good men in the pursuit of useful enterprises, have been prostrated. It is most unfortunate, that under this influence, all must suffer alike. Those who profit least bv the expansion, are often effected most bv the contraction. This is especially the case with labor, which is uniformly the last to he elevated in times of prosperity, and the first to go down in those of depression. The Banks, as a general rule, make the most out of these convulsions. It is often their error to flatter the merchant and trader when the tide of pros perity runs high, and to forsake him o'n the first appearance of its ebbing. Even sound banks, and of good reptitp, it is said, are seeking to make money out of the present crisis, by shar ing their capita! and its benefits with brokers and jobbers, instead of aiding the business com munity at legitimate rates. How far these al legations are warranted, it is difficult to decide: but it is to be hoped that few, if any of our banks are justly liable to this charge, for such a practice would be highly improper and well calculated to excite discontent. Such a depar ture from legitimate business would demand a prompt remedy at your hands. It may he dif ficult to confine these institutions to their pro per business, with the prospect of better profits in other quarters: but they should be rnadp to feel that thev have been created for a higher purpose than merely to enrich the stockhold ers. The crisis is a trying one: but there is still rea son to hop" that the credit and trade of the country will never suffer as much as it has done on similar occasions, in times past. There is now no National Hank to mislead the mercan tile class, and to embarrass the commerce which it professed to aid. Still the shock will be great enough to lead the public mind to enquire after a remedy for these periodical convulsions. And, surelv, we mav he permitted to hope, that the good sense ofthe people will never again he im posed upon hv those tfrude experiments which have, on some former occasions, so fearfully ag gravated the evils thev were intended to remedy. I respect fully advise the General Assembly against all such dangerous experiments. The remedy, to be permanent, must be a natural one: artificial means may add to present derange ments : but cannot correct them. An extensive increase of banking capital and other expedients will, doubtless, he pressed upon your attention : but it is hoped that no such fallacy may find fa vor. Nor is there any sufficient reason for the alarm and sensitiveness manifested in certain quarters : the real wealth of the country still exists, and the natural elements of prosperity are no less than heretofore. It is the shadow, not the substance that is passing aw ay. The business community should look the danger bravely in the face, and by their energy, hones ty and enterprise, overcome it. Mutual confi dence and forbearance should be cherished by all. as a means of accomplishing this desirable end. Tn accordance with the provisions ofalaw passed in April last, a vote of the people was taken, a! the October election, on the policy of prohibiting the manufacture and sale of intoxi cating liquors : lf)S,3-f-2 votes were cast in fa vor of the measure, and 163,010 votes against it. VOL XXIII, NO. 23.