COMMERCIAL & STATISTICAL

REGISTER.

VOL. IV.

EDITED BY SAMUEL HAZARD.

PHILADELPHIA, WEDNESDAY, JANUARY 13, 1841.

MESSAGE

OF GOVERNOR PORTER OF PENNSYLVANIA.

To the Senate and House of Representatives of

the Commonwealth of Pennsylvania

No. 2.

that although the day fixed for the resumption was more remote than I wished at the time, yet the period of indulgence has nearly passed away, and there is now good ground to believe that the banks of this Commonwealth will, as they are required to du, be prepared again to discharge their liabilities in specie. Should they do so, by continuing strictly to observe the law, and by fulfilling the just expectations of Fellow Citizens:-Among the various duties enjoined by hitherto lost, and more particularly may they do this if prothe public, they may regain the confidence which they have the Constitution on the Executive Magistrate, none is more per measures be adopted for the better regulation and control important and more frequently perplexing, than that of "giv- of their operations. One of the most immediate advantages ing to the General Assembly information of the state of the resulting to the community, from the resumption of specie Commonwealth, and recommending to their consideration payments, will be the entire expulsion from circulation of such measures as he should deem expedient." On this octhe illegitimate brood of small notes that have been poured casion I am happily relieved from much of the anxiety and in upon us, from the neighboring States on all sides, in defiembarrassment attendant upon the discharge of this duty, by ance of law, and of the most active endeavors to suppress referring your attention to the annual message which I had them. I cannot, however, conclude this part of my subject the honor to transmit to the Legislature on the 8th of Janu- without recommending that no increase of our banking capiary last. In that message I felt it to be my imperative duty tal be made under any circumstances, and that effectual proto enter into a full and elaborate exposition of my views on vision be made by law, that if any bank shall, at any time several deeply interesting subjects connected with the pub: hereafter, suspend specie payments, it shall be ipso facto a lic welfare, and especially on the subjects of the internal forfeiture of its charter. Nothing short of an absolute and improvements of the Commonwealth, the public debt, and unconditional provision of this kind can arrest the frequent the reformation of the banking system. In regard to these over-issues by the banks, induced by the inordinate cupidity leading questions of vital interest, and the numerous subor- of those under whose directions they may be conducted.dinate matters intimately associated and blended with them, Let the great principle be distinctly announced, as the founI can add very little to the opinions I expressed, and the redation on which our banking institutions rest, that, hereafter, commendations I made in the message to which I have just there are to be no more su pensions of specie payments in referred you. The experience of the past year has not only Pennsylvania. confirmed, but strengthened my conviction of the justice and propriety of those opinions and recommendations; the people at large, with unexampled unanimity, have approved them; The condition of the public improvements during the past and I earnestly invite your careful deliberation, as I did that year, has been attended to by the officers entrusted with their of the last Legislature, upon those portions of the message, management, with untiring assiduity. They are in a much to which you will find convenient access upon your journals. better state of repair than they ever have been since their So far as respects the reform of the banking system, I per-construction, and but little delay or interruption in business ceive no necessity for changing or modifying, in any essential particular, the recommendations therein contained; and I now here respectfully, but earnestly recommend the adoption of the recommendations I then made on this subject, and trust that the present Legislature will not separate, until they shall have made a searching and through reform of the imperfections and manifold abuses of the present system. To me it has been a subject of deep regret, that my recommendations on that subject did not meet the approbation of the last Legislature, persuaded as I am, that the most beneficial influences would have resulted from their adoption.It is not, however, too late to apply the remedy still; and I again recommend, with anxious earnestness, those measures for reforming the abuses of the banking system to your early

attention.

Resumption of specie payments.

The resumption of specie payments on the part of the banks, which constituted, a year ago, such a formidable portion of the difficulty in the way of efficient legislation, is about to be consummated, without your active interference at all. Under the resolution passed on the 3d day of April last, those institutions are required, on and after the 15th day of January inst., to pay on demand all their notes, bills, deposites, and other liabilities in gold or silver coin, on penalty of the forfeiture of their charter, upon certain conditions set forth in said resolutions. It affords me great pleasure to state, VOL. IV-3

Public Improvement.

has occurred. The amount of business done on the main

line, it is true, has been less than last year, but it has been owing to causes in no degree connected with the management of the public improvements. I refer you to the report of the Canal Commissioners for a detailed and accurate statement of the present condition of the improvements, the sum required to complete those lines in a state of forwardness, and the amount needed for repairs on the canals and railroads now in operation, as well as the amount due for repairs heretofore done.

I feel it to be my duty again to state to the Legislature, that as soon as those portions of the unfinished lines of imwhich, if the work had been suspended, more would have provement, now almost completed, are finished, and upon been lost to the Commonwealth, than by hastening their completion, I think it full time for Pennsylvania to pause in her career of internal improvement, and test for a time the usefulness and value of the stupendous achievements she has already made. I have been from the beginning, the friend and advocate of the internal improvement system of this Commonwealth, and shall continue to be, so long as that system is confined to the main lines and their immediate tributaries; but our immense public debt, and the sacrifices which the people are called upon to make in consequence of it, for the payment of the interest, and of the principal as it falls due, forcibly acmonish us, to consult prudence and economy before we incur additional responsibilities, without a corresponding in.

18

crease of means to meet them. A revival of business, and
the natural augmentation of our population and resources,
will in a short period of time, enable us to realize from our
improvements, many of the advantages of which they are
susceptible, and as I confidently trust, enough, and more
than enough to demonstrate the wisdom of their projectors,
and the soundness of the policy, which led to the enormous
When that day
investment of capital in their construction.
arrives, let canals and railroads be constructed wherever they
promise to be useful throughout the wide extent of the Com-
inonwealth; but until it does arrive, let us husband our re-
sources, and diminish as much as practicable the burthens
now imposed upon the people of the State.

Thus it appears that the resources of the Commonwealth are abundant, but not immediately available for the purpose of paying either the principal or the interest of the public debt.

It is proper here to remark, that it has not been the uniform practice of the Legislature to provide sufficient revenue to meet the current demands upon the State Treasury. The various appropriations of the public treasure have excecded the public income. Out of this state of things a custom has grown up at the Treasury, it seems, to pay the demands upon it, as they are from time to time presented, without reference to the specific appropriation of part of the moneys therein to the payment of the interest upon the public debt, which falls due semi-annually, on the 1st of February and 1st of August. Under this custom it has happened, that from a deficiency of other means, the moneys arising from tolls, auction duties, tax on collateral inheritances, dividends on turnpike, bridge and navigation stocks and escheats, which had been set apart by law towards the payment of the inly to meet other demands upon the Treasury. There will, therefore, be a deficiency in the fund for the payment of interest on the public debt, upon the 1st of February next, of perhaps $800,000. This, as well as every other subject relating to the revenue, belongs so exclusively to the legislative branch of the government, that no recommendation of the Executive can be required, to bespeak for it the necessity for some special legislation in relation to its future disbursement. The Tax.

The amount necessary to complete the main lines and to put the improvements now in use in a thorough state of repair, you will be fully informed of by the Canal Commissioners; which amount of money I would respectfully suggest, should be immediately appropriated so as to enable the Canal Commissioners to make proper arrangements to apply it with most advantage to the public service. Great and im-terest on the public debt, have been paid out indiscriminatemediate repairs to our improvements are indispensable, if we hope to maintain the character of those improvements, and to prevent our immediate Northern and Southern neighbors from diverting from them a large share of the business of the West and South. The honor of Pennsylvania is too deeply involved in this measure to admit of apathy or delay. Feeling as citizens of this Commonwealth should feel on this subject, I am sure no stronger motive to action could be presented to you, than that of enlightened and manly state pride, addressing itself to you through the medium of official duty.

Public Debt-Finances.

The present amount of the public debt is
Permanent loans at 5 per cent.

Do do 4 per cent.

Temporary loans at 4 per cent.

Due United States, on account of depo-
site surplus revenu,

Unpaid appropriations,

$33,086,013 32
200,000 00
15,000 00

$33,301,013 32

2,867,514 78
622,247 59

It is computed that the tax which will be rendered availa"An ble under the act of the 11th of June, 1849, entitled, act to create additional revenue to be applied towards the payment of interest, and the extinguishment of the debt of the Commonwealth," will amount to about $600,000.— The sum which will be raised under this Act, together with the other resources of the Commonwealth, will most probably liquidate the interest account, without further resort to loans for that purpose. This act is to continue in force five years, and provides such a rule for the assessment of taxes, as to fall with gentle weight on those who are little able to bear any addition to their expenses. The articles taxed are those purely of luxury, such as gold watches, pleasure carriages, household furniture exceeding in value three hundred dolUpon an examination of the debts and liabilities of the Com-lars, together with bonds, bills and notes of solvent obligors, monwealth, on the 15th of January 1839, and the subsequent laws passed, anthorizing loans and making appropriations, it will be found that nearly the whole sum borrowed since that Although this act undoubtedly operates with considerable period has been applied to debts and liabilities then due and falling due, on account of the public works finished and in hardship upon those who fall within the reach of its proviprogress to the payment of temporary and stock loans-forsions, still they are comparatively, subjected to very little ininterest on the public debt, and for the repairs of the canals convenience, for in most instances they do not belong to the poorer classes, on whom taxation usually falls with the most and railways of the Commonwealth. peculiar severity.

$36,790,775 69

The only sums appropriated out of the loans authorized
to be made since I came into office, which were not applied
to liabilities then due and growing out of contracts, which
existed at that time, are the following:
To the survey of a railroad from Harrisburg
to Pittsburg,

To stock in the Pennsylvania and Ohio
canal,

To stock in the Franklin Railroad,
To stock in the Monongahela Navigation
Company,

bank stock or stock in other corporations, yielding dividends of at least one per cent. salarics of public officers and real estate.

To impose taxes on any class of our fellow-citizens is not very agreeable, nor a very popular task; but when, as in this case, the honor and fidelity of Pennsylvania must be sacrificed, or a tax of this kind be endured, there are few, $45,000 CO very few men in the Commonwealth, worthy to be ranked among her free, intelligent and upright citizens, who will When, too, it is 50,000 00 shrink from their share of the burthen. 100,000 00 known that those who recommended, and who sanctioned the bill imposing the tax, are no more responsible for the ne100,000 00 cessity that compelled a resort to it, than any of those who are to pay it, the folly and injustice of those who would $295,000 00 condemn, are rendered still more conspicuous. I found the debt upon which this interest was to be paid, in existence when I assumed the functions of the Executive and found nothing to pay it with. The Treasury was exhausted, and $2.108,700 00 no means left to meet this responsibility but further loans, 2,830,348 89 a sale of the improvements, or taxation. The first two were 645,269 00 impracticable, and I was driven by stern necessity to the 335,546 90 adoption of the latter alternative. I saw but one path be1,000,000 00 forc me open to pursuit, and that was the path of duty. I 29,578,506 17 recommended taxation; that recommendation was adopted by the Legislature, and it is a source of proud gratification $36,498,370 96 to me, when I consider that the people of Pennsylvania, al

most to a man, so far as I have been informed, with a firm ness and patriotism worthy of themselves, have yielded to this necessity without murmur or repining. I feel fully convinced that at the expiration of the five years at farthest, with a reasonable degree of prudence, and with strict economy in the management of our affairs, the income of our improvements will render a renewal of this law wholly unne

cessary.

If any difference of opinion exists as to the necessity of this tax, let these questions be answered by those objecting. Does not Pennsylvania owe this debt? Is she not morally and legally bound to pay it and its interest, as it falls due? Can they point out any other mode by which this can be done?

You, however, have come directly from the people, and are supposed best to know their opinions on this as well as all other subjects; and if you differ in opinion with me on this important subject, and think the tax ought not to have been laid, it is your duty to repeal the law instantly. No part of the tax has yet been collected. Seeing no other mode of extricating the Commonwealth from the difficulties in which I found it, my views and opinions remain unchanged. Yet if the immediate representatives of the people think proper to repeal the law, and can substitute any other mode less objectionable, which will promptly meet the exigency, be it so; the responsibility rests with them.

Faith of the State.

by the opening of the navigation in the spring of 1842.The vast importance of the immediate completion of the main lines, as well to the citizens immediately interested in them, as to the fiscal interests of the Commonwealth, cannot be too strongly pressed upon your attention. They will complete a communication between the great lakes and our commercial metropolis. They will also, by a proper arrangement with the authorities of New York, connect our im-' provements with those of that great (ommonwealth, thus affording an opportunity of exchanging the products of the two States, and strengthening the bonds of our National Union. They will also add largely to the revenue on the works now in use.

Whatever differences of opinion may have existed as to the policy of commencing the Erie Extension and North Branch Canals, there ought to be none now as to their speedy completion. They are nearly finished, a comparatively small sum is necessary to complete them, and the policy of a continued and protracted delay in completing works which the State is pledged to accomplish, until the first work done upon them has become useless from decay, has proved disastrous and ruinous on many occasions.

The course heretofore usual, of neglecting to appropriate a sufficient sum for repairs, and that early in the session, has. been seriously detrimental to the interests of the Commonwealth. At the last session, the Commissioners stated that the lowest estimate for repairs required $700,000, and the Legislature appropriated $500,000, a great portion of which was absorbed by debts then due. The result has shown that the Commissioners were right. The fund has long since been exhausted. The necessary repairs have not been completed. Those who have been engaged at them are unpaid, ' and the Supervisors are without funds to lay in the necessary materials for repairs. The repairs on the lines of Canals in use should ordinarily be made in winter, when they would not interrupt the use of the Canals; and it has usually hap

I can never consent, by word or deed, to countenance the idea that the faith of the State can be violated by a failure to meet her engagements. If there be any in our country who would be willing, if they were able, to abrogate the contracts of the Commonwealth, and be faithless to her creditors, let their doctrine be distinctly avowed and the issue fairly made up before the people, the intelligence and integrity of our citizens would speedily convince the world that they feel the necessity in a republican government of main-pened that before the arrival of winter the officers have no taining unsullied, public faith and national honor.

means at their command, and no appropriation bill is passed until late in the session. The whole system of repairs, in Deficiency in the funds for payment of the interest. consequence of the uncertainty of the time of paying the The deficiency in the funds set apart for the payment of workmen, and those who furnish materials, costs the Comthe interest on the public debt falling due on the 1st of Feb-monwealth much more than it would do, were the means of ruary next, must be promptly provided for. By the act of payment ample, certain, and promptly applied. the eleventh of June last, the Governor is authorized to procure it on loan, and for that purpose proposals have been invited; whether the money can be procured I know not, and in case it cannot, I see no other mode left to avoid the dishonor of the state credit, but the sale of a sufficient amount of the stock owned by the State, in one or the other, or all of the banks in which she is interested. The State owns the following amount of stock in each of the banks named viz: the Bank of Pennsylvania 3750 shares, Philadelphia Bank 5233 shares, Farmers' and Mechanics' Bank 1708 shares. The stock would most probably command a ready sale, and I do most sincerely hope that not a day will be lost before this possible blot on the faith and honor of the State is effectually guarded against by the prompt action of the Legislature,

Internal Improvements.

In my last annual message, the question was distinctly presented to the Legislature whether the works then in progress should be prosecuted to immediate completion or not, and the question was by them determined in the affirmative, and the sum of $600,000 appropriated to each of what has usually been denominated the main lines; and the works being so far progressed in as to warrant the expectation of their being completed in another year, all will now concur in the opinion, I presume, that provision, should be immediately made for the completion of the unfinished works as soon as possible.

Beaver Division of the Pennsylvania Canal. connected with the public improvements of Ohio by the The Beaver division of the Pennsylvania Canal is already Pennsylvania and Ohio Canal, a work which has been completed by individual enterprise, aided by public appropriations from both States, and bids fair to be a valuable tributary to stockholders. It has been accomplished at a less cost than our public improvments, and a profitable investment for the any other work of the kind which I have visited, and is a monument of the wisdom of its projectors, and of the skill prudence and economy of those charged with its construc

tion.

Law authorizing the Canal Commissioners to treat with
New York.

ment of a law authorizing the canal commissioners to treat
I respectfully recommend to the Legislature, the enact-
with the authorities of the State of New York for such a
connexion of our internal improvements with theirs, as will
best promote the interest of the two Commonwealths. The
law should limit the terms and conditions, and define the
power and authorities of the commissioners in such manner
as on due consideration shall be deemed proper.

Selling or leasing water power.

The interest of the Commonwealth would also be adA judicious and immediate appropriation, promptly made vanced by entrusting the same board with the power of sellin anticipation of the usual appropriation bill, specifically for ing, or leasing, water power created by our internal the works under contract-for the completion of the reser- improvements. There are at many points, and in very advoirs at each end of the Portage Railroad-and for ordinary vantageous situations, surplus quantities of water which repairs, is imperiously called for, and will enable the con- could be profitably applied to various branches of manufac tractors to complete the whole, and have them ready for use' ture without injury to the due supply of our canals. The

20

tolls on our public improvements would be increased thereby, and a considerable sum realized from such sale or lease, Guaranty for the paymn of interest on stock of the Bald Eagle and Spring Creek Navigation.

and the true position of our various mineral deposits, has
served greatly to increase the accuracy and value of the large
body of facts now collected. Throughout several extensive
sections of the State, where hitherto, no accurate clue had
been discovered by which particular beds of those useful
substances, iron ore, coal, marble and limestone could be
traced, much of the obscurity has been removed. Several
districts, however, of greater or less extent, yet remain to be
explored. Though some of these have been already faith-
fully examined, one year more will be necessary for unra-
velling the intricacies of their structure and enabling the
geologist to arrive at a satisfactory knowledge of their re-
For this purpose an appropriation will become
sources.
necessary. The amount, however, will be less than the sum
hitherto annually expended. The topographical maps now
in a course of construction, are essential as a basis for the
geological map called for by the law. In the chemical de-
partment of the survey, an extensive series of ores, coals,
cement, fluxes, &c. have been analyzed, resulting in a species
of knowledge now becoming every day more important to
the growing manufacturing, and mining interests of Penn-
sylvania,

By an act of the 7th April, 1835, a guaranty was made, on the part of the State, for the payment of an interest of 5 per cent. for twenty-five years on $200,000 of the capital stock of the Bald Eagle and Spring Creek Navigation Company; and, by a subsequent act, the State has since subscribed $25,000 to the stock of the company. The whole of the work is completed and in active operation, except the last six miles, on which about one-third of the excavation and embankment is made, two locks completed, and another nearly completed. A comparatively trifling sum would finish this work, but the funds of the company are exhausted, and the Commonwealth is annually called upon for the amount of her guaranty, and her subscription is wholly unproductive. It is a very valuable tributary to the State Canal, terminating in one of the richest mineral regions in this or perhaps any other country. Every article coming out of it pays a toll on our State Canal for 150 miles to Columbia. I therefore submit to the better judgment of the Legislature whether sound economy does not dictate the further subseription of a sum sufficient to finish it, believing that its productiveness will then be amply sufficient to relieve the Commonwealth from any further payment of her guaranty.munity. It has been consoling, however, to reflect that dur

Improvements by means of private companies. There are at present many public improvements in a course of construction in our State by means of private companies, most of which I cannot but think are calculated to benefit Pennsylvania in a very high degree. Among the latter I may particularize the Williamsport and Eimira railroad as tending with certainty to produce this result. This road will connect the Grand Erie Canal of New York, by the Seneca Lake, with the West Branch Canal at Williamsport; and also intersect, at Elmira, the great Southern railroad, now being constructed from the Hudson river to Lake Erie, at Dunkirk. The advantage likely to result to our selves from the construction of this road will be, that the great amount of tonnage and travel which now annually finds its way from the lakes, through the State of New York to the Atlantic, will thus be brought directly through our own public improvements to Philadelphia, the distance from Elmira to the latter city, by this route, being 71 miles shorter than from Elmira to the city of New York by any contemplated improvement in that State. Other improvements of a similar character, and perhaps of equal importance, might be noticed.

Publication of all laws of a public nature. Every man is presumed to be present in the Legislature by his representative, and to know what public laws are enacted, and is therefore held to be bound by them from the This notice, however, is but a time of their enactment. I would respectfully suggest, whether constructive one. some provision for the immediate publication of al! laws of a public nature is not necessary, to give to the people actual notice of provisions by which they may be seriously affected.

Public Schools.

The report of the Superintendent of the Public Schools, which will shortly be laid before you, will show the progress which the cause of education is making in public opinion, and the state and condition of the colleges, academies and schools, throughout the commonwealth.

Geological Survey.

Though the active operations of the Geological Survey are not yet entirely completed, a much greater extent of country has been minutely explored during the past season, than in any former one. The State Geologist, and his corps, were laboriously occupied in the field, their researches extending into various districts, both east and west of the Allegheny mountains. The insight acquired during the progress of she survey, into the more minute features of our Geology,

Pecuniary embarrassment in the business community.
It is an undoubted fact, that the few last years have been
a period of pecuniary embarrassment in the business com-

ing a portion of that time, our husbandmen have been reap-
ing a full reward for their labor in abundant crops, for which,
until recently, they have found ready markets, at fair prices.
They had not generally been affected with that mad spirit of
speculation, which at one time seemed to have seized so
large a part of other portions of our citizens, and induced
"haste to get rich."
them to engage in almost every visionary scheme in their

The causes of this embarrassment have been variously explained, as suited the views of those who undertook the task. My own views upon this subject have been fully and freely expressed in my communications to the preceding legislatures. No one, however, can doubt, that when our country is importing large amounts of the luxuries and superfluities of life from foreign countries, and not exporting a sufficiency of our own products to pay for them, there must be a constant drain of the precious metals, and hence at home. A retrenchment among our citizens, of whom a scarcity of money to supply the wants of our community plain republican simplicity has ever been a distinguishing characteristic, in the purchase and use of articles of mere luxury, would greatly tend to lessen this cause of pecuniary embarrassment.

The consequences of the embarrassment in our mercantile and manufacturing operations, are now beginning to be felt, also, by our farmers, in the more recent reduction of the prices of their products, although the fact communicated by the Secretary of the Treasury in his late report is cheering, that during the last year the exports from this country have exceeded the imports by nearly twenty-seven millions of dollars. This is certainly encouraging, especially when we reflect, that in prior years the reverse was the fact; and that without going back further, in the year 1836, the excess of imports exceeded the exports upwards of sixty-one millions of dollars; in 1837, twenty-three and a half millions of dollars; in 1838, five millions of dollars; and in 1839, forty-one millions of dollars; and that in 1837, the import of the single article of silk, a mere luxury, which our own country is as capable of producing as any other, amounted to twentythree millions of dollars, while our export of flour, during the same year, was but about seven millions of dollars. It is to be hoped, and the increased confidence growing out of the resumption of specie payments about to take place, warrants the conclusion, that business will resume its accustomed channels, and taking lessons of prudence from the past, our citizens will not again be tempted into those wild excesses which have well nigh led on to bankruptcy and ruin, and the prostration of public and private credit and confidence.