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By A : A. GAULDING & CO.
“ERROR CEASES TO BE DANGEROUS, WHEN REASON IS LEFT TO COMBAT IT.”—JEFFERSON.
PROPRIETORS.
NEW SERIES, YOL. 2.
ATLANTA, GEO., THURSDAY, NOVEMBER 11, 1858.
NO. 3.
Ctie JntfUigfltcfr.
THURSDAY, NOVEMBER 11, 1858.
r the
State Road.
We are happy to learn that $25,000 for
Month of October has been sent to the State
I’reasury, at Milledgeville, by Col. May, the
worthy Treasurer of the State Road, as the
iett earnings of the Road for the month
jetober. Who can fall out with or object
state Road under such management ?
The “SSmplre State.”
We find in the last issue of the Empire State,
h o salutatory of R. A. Crawford, Esq., who
nts ltecome joint proprietor and associate
alitor of that paper. We know Mr. Crawford
Fell, and congratulate the editorial fraternity
ipon so valuable an acquisition to onr ranks.
Vs a gentleman and an ablo writer, Mr. C. will
*. an honor to the profession, and under the
uint management of himself and Maj. Steele,
he Empire Slate will be well sustained. They
mve our best wishes for their success.
Judge Warner’* Address.
We have before us “An Address delivered
icfore the Thalian and Phi Delta Societies of
Iglethorpe University by Hon. Hiram Wav
er an honorary member of the Plii Delta So-
iety.” The subject chosen by the able si>ea-
er was “The Battle of Life.” No man in
ieorgia, from actual experience, is better
Hialilied to make a practical elaboration of
life interesting and inqiortant subject. The
Milder of his own worldly fortune, the arclii-
;ct of his own fame as a jurist and a 6tates-
uin, he is peculiarly fitted for the task of
istnicting the young and inexperienced in
in- art of fighting successfully “The Battle of
if,.for in the language of the learned ora-
“disguise it as we may, it is a warfare in
hicli some are successful, but many are de-
,lied.” How important then to the young
leu of our country, to learn wisdom from the
aehings of those who have been engaged in
liis “warfare,” and who have borne off the
aim of victory. We advise all our young
fends to endeavor to procure a copy of Judge
Earner’s able address and read it carefully,
ml ponder well its teachings.
Premium List.
We publish to-day, what we suppose to lie
e ton elusion of the List of premiums, which
■re awarded at the late Agricultural hair
Id in this city. The tale day at which we
nent our readers with this information may
L-d a word of explanation at our hands.—
e made an effort to procure a copy of the
■mium list immediately after the close of
c Fair, which we failed to do. Some days
erwards we found in the National American
this city a part of the list, with a notice
at it was to bo continued. Wo contented
i selves with following the lead of our At-
ita cotemporary, in this instance, and inten-
1 to copy the listas it might appear in that
er, from time to time. But it seems our
glilH»rhas failed to procure a full copy
yet; judging from the non appear-
e in that print of the promised con-
nition of the list. Whether he was
re fortunate than ourselves in pro-
ing a copy from the Secretary we know not;
we do know that there was no copy offer-
is from any quarter. Nearly two weeks
r the close of the fair, we are reduced to
necessity of completing our list from the
mins of the “Augusta Chronicle & Senti-
“ a pajier published 170 miles from the
«where the Fair was held. How tliis
it should have been more fortunate than
Atlanta papers we are at a loss to deter-
e. Courtesy at least demanded that the
otary of the Society should have tendered
Press of this csty, each with a certified co-
f the premium list. We charge nothing
lie publication, and wo think it was as
; as the Secretary could have done to fur-
us and our Atlanta cotemporary with a
• over his official signature. Why the
usta i»ai>er should have been preferred to
re will not undertake to say.
Slate Rond—Dr. Lewis.
i; have frequently taken occasion of
to speak of the State Road and its
igement. It however, needs no praise
us. In its present prosperous condition
Is its own talc. Wo must lie allowed in
connection, to say, that Governor
n has been peculiarly fortunate in the
tion of a Superintendent who so perfectly
tliorouglily understands tlio practical
itions of the road, as to make it pay into
State Treasury handsome dividends every
th. As a general rule, he who under
lie management of his own affairs,—
does it profitably—is capable of discliarg-
hoseliigh functions to the public in a su-
r degree, which result to the benefit of
tncerned. Dr. Lewis is that man. Long
he live to enjoy the benefits arising from
thful discharge of duty imposed upon
by the law and the chief Executive of the
When 6ucli opposition prints as tho
them Recorder,” sjicak ..favorably of the
audits management, we feel that we
ot say too much for it. Read below
the “Recorder” of the 2nd inst., has to
ate Road—Dr. Lewis.—While at the
at Atlanta, a few days since, we had the
uro of a first interview with Dr. Lewis,
hie and courteous Superintendent of the
Road. In manners, he is of tho old Vir-
Scliool—affable, free from affectation,
liguified. In the course of abricfcon-
tion touching matters of the road, he po-
■ invited ns with other editors present, to
a trip over the road to Chattanooga with
mber of members of the Legislature on
y last, that we might for ourselves judge
condition, &c. We regret very much
business, engagements did not permit our
g so, bu^t we arc none the less thankful
r. L. foy his polite offer. Dr. L. seems to
general satisfaction to all parties in his
dement of the road and shuns not the
^investigation. ,, ,
hilev hi Atlanta, speaking aboat the road
a Gentleman whose position would au-
20 him to know the facts, we we»e grati-
te hear that the cutting off of ’’dead
»” and other “sponges” upon the State,
■ sufficient to defray the running expense*
e road ! So much for having a man at
ead, who knows his duty and dares lion-
do it, regardless of party politics, or the
plaints of such as would be less scrupu-
about the public good.—Southern Record-
flT’ The Hon. John E. Ward, of Savannah,
at present President of the Senate of the State
of Georgia, we understand has been tendered,
by the President of the United States, the Mis
sion to China. It is thought he will accept.
No man in the State is more worthy or lietter
capable of filling the post.
Eclectic Magazine.
D. C. Ramsaur, agent for the above Maga
zine, is in the city soliciting subscriptions for
the same. It is a good Periodical—contains a
large quantity of reading matter from the pens
of some of the best writers in the country. He
is also agent for “The National Preacher” and
“Halls Journal of Health,”—both good Jour*
nals. He will remain in the city a few days.
If you wish to subscribe call on him.
Medical Card.
We invite attention to the Card of Dr. H.
W. Brown, which appears in our columns this
morning. Dr. B. has been connected with the
Atlanta Medical College from its first organi
zation. He has recently removed to this City
intending to make it his permanent residence^
From an intimate acquaintance of ten years,
we can safely recommend him as a man and a
physician to the good graces and kind offices
of all men.
Cobb on Slavery*
The Law of Negro Slavery in the United
States of America ; to which is prefixed An
Historical Sketch of Slavery. By Thomas
It. R. Cobb, of Georgia. Philadelphia; T. &
J. W. Johnson. Savannah, W. Thorne Wil
liams, 1858.
We have been favored by the author with a
copy of the above work. From a hasty glance
at its pages we are constrained to the opinion
that it is just the work for the times. The Sa
vannah Republican justly pays the following
compliment to the author, which we heartily
endorse;
“Our purjiose, at this time, is simply to an
nounce the appearance of this valuable work,
and to offer our sincere thanks to the Author
for a copy. We design at an early day, to re
view it at length, and to show how far Mr.
Cobh, by his genius and research, has made
himself the creditor of the lawyers and states
men of his time.
Much has been written on Slavery, but it
was reserved for Georgia to produce the only
thorough historical, philosophical and legal
treatise on the subject.
The work, as indicated in the above trans
cript of the title page, is before us in the form
of a single volume ; though the “Historical
Sketch” is also issued separately, in a volume
to itself, for general circulation ; and we may
add, the library of no gentleman can lie com
plete without it. Price $1 50.
Either volume, or both bound in one, may
be had in this city, at the bookstores of Col.
Williams and Jno. M. Cooper & Co.
Part Second in the volume lieforc us, con
tains a view of the negro slave as a person. An-
itlier volume will be issued at an early day,
setting forth the rules of law to which ax prop
er!y, he is subject.”
For sale by Win. Kay, Atlanta. Ga-
Bueak-bone and Yellow Fever the Same.—
The Savannah Republican says, “in the intro
duction to an able article in the Savannah
Journal of Medicine for the present month,
the writer, Dr. Richard D. Arnold, of this city,
advances the following opinion
“For myself, my belief lias been fixed to
one point, since the yellow fever epidemic of*
1854, and the epidemic of the present season
has merely accumulated proof to my mind, not
furnished any new proof; and that point is
the identity of Dengue or Break-bone with Yel
low Fever.”
There has been a violent outbreak
tig the students of the North Carolina
ersity at Chapel Hill, the principal fea-
of which are ; the burning of one of the
ers in effigy, assaulting the Faculty,
ng the benches, and attacking a private
nee.
' Edward Houghton, cashier of the Litch-
Conn.) Bank, was arrested in New York,
iday, on the charge of embezzling $10,-
Tlie Montgomery and We6t Point Rail-
"oinpany have declared a dividend of
Lollars per share.
Another Wheel-barrow Man.—The Kan
sas City Journal of Commerce states that A. 0.
McGrow, of Pittsburgh Pa., left Kansas City
on the Kite, solitary and alone, for Pike Peak
diggings, taking his provisions, blankets, pick
and shovel, gun and ammunition in a wheel-
harrrow ! When he left Pittsburgh he had
just five cents in money, and no outfit save
what he had on his back. Pitkins, hardware
dealer of Kansas City, who has known Mc
Grow, for some years, filled his wlieel-barrow
with an outfit, and McG. started on his soli
tary pilgrimage of six hundred miles through
an uninhabited country save with Indians and
Buffalos, determined to fill his single-wheeled
coach with shining dust as soon as -anybody.
In passing a train before reaching Westport,
McGrew was offered a place in the company,
but returned thanks for the proffered kindness,
adding that he could not consistently accept
the offer, as he was in great haste, and fear
ed that he might he delayed, and perhaps
caught in the snow, if he travelled with oxen
Our Affairs with Central America.—The
Washington Union, apparently speaking by
authority, says the policy of the United States
is not to acquire Central America, or any part
of it, but to open the Isthmus routes and have
them free to all the world. Meanwhile it is
but fair to claim that the. covenants made with
our people shall be enforced. Not only lias
Costa Rica made ample apology to our Govern
ment, but received Gen. Lamar with great cor
diality. He will attend the convention of the
Central American States about to be held, with
a view to effect the Confederation thereof.
Massachusetts Politics.—Ex-Gov. Gardner
made a speech in Faneuil Hall, Boston, on
Thursday, October 28th, in favor of the elect
ion of Heard, Democrat, to Congress, over
Burlingame.
Yet low Fever.—There have been 4.429
yellow fever deaths in New Orleans this sea
son, and 236 in Galveston, Texas. The dis
ease still prevails at Vicksburg, Miss., and the
mayo cautions strangers to keep away for the
presenr.
flf“ The London Star says a bill is being
prepared there by which no couple will lie
permitted to many- without finding two secu
rities to keep the peace towards each other.—
The sum requ ired willfbo from fifty dollars to
one thousand dollars, according to the wealth
of the parties.
|f7“ The Bank of Athens, on the 1st inst.,
declared a dividend of two dollars and a half
per share.
Not True.—The rumor that Mr. Preston,
of Kentucky, has declined the mission to
.Spain, is untrue. He accepted the appoint
ment. and is preparing for his departure.
‘Well, Alick, how’s your brother Ike get-
ir.g on these times V
'Oil, first-rate. Got a start in the world—
married a widow with nine children ! A pret
ty sizable start, that.’
It was a remark of Themistocles, that he
preferred marrying his daughter to a man who
lacked wealth, rather than to one who lacked
sense.
Punch abb Crinoline.—Punch gives no
quarters to crinoline, having been engaged for
the past year or two in a crusade against it.—
His last shot is entitled the “New Crinoline
Regulator,” representing an oinnilras strung
round with skeleton crinolines, while tho dri
ver stationed at the dooi, remarks to an ap
proaching lady in full dress, ‘ Werry sorry’m
but jKr’ l have to leave yer krinerline out
side.
Arrivals** Coin.—The peculiar condition
of our exchafw on northern cities renders it
an economical n^yement u> bring out (x)in for
the purpose o By the steamship Ala
bama, irom New * “\arriv«d at this port yes
terday, we notice theY^i pt ((f a quarter „ fa
million in specie, of $200,000 is for
Messrs. A. Low & Co., afii $60,000 for the
Marine Bank.—Stw. Repub,
Southern Pacific Railroad.
We publish to-day the authorized account
of the negotiations recently pending in Mar
shall, Texas, for the settlement of the diffi
culties between the two contending parties
claiming the ownership of the Southern Par
cific Railroad. If these negotiations shall be
consummated in the propel spirit by all par
ties by which the great materia] point of go
ing on with the Railroad, shall be immediate
ly pushed onwards, then the country may
rejoice. We see in the future, vast benefit to
the South in this great work, and for Atlanta,
we recognize material benefits, by the comple
tion of the intermediate links from this point
to Vicksburg and thence to Texas. But it is
particularly Tgratifying that the difficulties
have been so harmonised as to bring this mat
ter to a safe conclusion. Col. L. P. Grant
the head of the Road will he in town in a few
days when we shall he able to present to our
readers a fuller account of the proceedings and
the prospects of the great enterprize.
mb. \
1 a An’s
s heart, but
Love may slumber in
it always dreams.
Cabinet Rumors.—Die Wasbfw^, pj, JCB
says there is not the least ground V ^j )( . j a ^ e
rumors of changes in the Cabinet. V e p res .
plent and his official advisers are a ui
“You seem to walk more erect til
uftRiny friend.”
“Yes, I have been straightened by cirt^j.
stances.”
The Pacific Railroad.
AWARD OF THE ARBITRATORS—ADJUSTMENT OF
tue Difficulties between the old and new
SOTTHERN PACIFIC RAILROAD COMPANIES.
Marshall, Texas, October 18,1858.
Messrs. Editors: As a matter of news that
will doubtless he interesting to a large number
of our readers, I send yon the inclosed slip
from the Harrison Flag, and also a copy of the
“award” of the arbitrators selected to settle
the difficulty between the old and new South
ern Pacific Railroad Companies.
It will be seen that the new Company have
succeeded in lopping off all stock that is not
genuine, and that all stock is required to be
sent to Marshall within six months, for ap
proval and that, if found good, it is approved
otherwise it is rejected. This saves the enter
prise, and insures the speedy construction of
the road. When the stock books have been
purged, the Bona fide stockholders are to elect
new officers, and the present ones, both old and
new, are to retire. The Texas movement has
therefore, succeeded in freeing this great en
terprise from its embarrassment.
Harrison
award.
Whereas, Jeptha Fowlkes, President of the
Southern Pacific Railroad Company, chartered
by the State of Texas, in behalf of the Direc
tors and stockholders of said Company, being
fully authorized thereto, have submited to L.
P. Grant, President of Southern Pacific Rail
road Company, organized under the act of toe
Legislature of the State of Texas approved
the 19th of December, 1857, certain points of
difference between their respective organiza
tions, to toe undersigned for final adjustment,
determination and award-each party, as afore
said, in behalf of their respective organizations
as aforesaid, having entered into a bond to the
other in the sum of five hundred thousand
dollars, condition to abide their own agree
ment, and the award of the undersigned or a
majority of the same in toe premises:
And whereas, the party of toe first part has
proposed to toe party of the second part that
all bona fide debts against the Company in the
hands of the new Company shall be paid off
one-fourtli in three months, one-fourth in ffve
months,fane-fourth in seven months,! and the
remainder in nine months, in cash, or with
sueli negotiable paper as shall be good and ap
proved by a majority of the Committee.
To pay the moneyed demand .held against
the Company, and merged in the stock of toe
Company, to receive and take as payment be
made a transfer of the stock with the debt;
Amd where the’party of toe second partagre*
that the bona fide stockholders of the “sold-
out Company” maybe permitted to pay all
the debts recognized and contracted by the
said S. P. R. R. Company, provided the same
shall be paid by the expiration of three months.
But the party of the second part, in consider
ation of such payment, agree that all the stock
held by the corporators of said Company repre
senting said debts shall at the time of said pay
ment, in full, he transfered to the liona fide
stockholders.
And wheras both parties agree that the un
designed, shall settle and determine who are
bona fide stockholders.
Now therefore, touching the points of differ
ence in the forgoing proposition between the
parties, undersigned award and determine
that the said party of the first part shall pay
and satisfy in cash or good negotiable paper, to
be approved by the undesigned, all the bona
fide debts held by the party of the second part,
merged in or represented by their stock injthree
equal payments, at intervals of three, five and
seven months from this date.
It is further awarded and determined, That
on the final payment as aforesaid, the said par
ty of the second part shall assign and deliver
over to such parties of the first part as may
be determined to be bona fide stockholders in
the Compauy of the party first aforsaid all the
stock in the Company of the second part, rep
resenting the debts originally due from the par
ty of the first part, and converted into stock in
toe Company of the party of the second parti
as aferesaid.
The party of the second part proposes that
on executing the agreement proposed for pay
ment and transfer of stock as aforesaid, that
the party of the first part dismiss a certain
suit now pending in the District Court of Har
rison county, Texas, wherein the 8. P. R. R.
Company is plaintiff, and J. M. Saunders and
others, are defendants. The party of toe first
part agrees that the undersigned shall be in
vested with full power to direct the institu
tion, or dismissal of suits between the two
companies, and against others, jointly or sev
erally, and make such orders and requirements
from time to time, as it may deem best to fur
ther the objects of the agreements.
It is therefore awarded and determined,
touching the matters last aforesaid, that if the
party of the first part shall make default in
their said several payments, as herein before
awarded to be paid, or any one thereof, then
and in that case the said suit shall stand dis
missed at his cost and all the rights claimed
by the parties therein shall be and remain
forfeited, and henceforth of no avail whatev
er.
It is further awarded and determined, That
should the party of the first part make default
and forfeit as last aforesaid, that then and in
that ease the said party of the second part
shall succeed to all their rights aud privileges.
And the undersigned regarding the assets or
property of such a corporation as a trust es
tate—equitably liable in whatsoever hands it
may lie, for all tho just and bona fide debts,
created for its benefit alike without discrimin
ation, doth award aud determine that in case
of a forfeiture of the rights of the parties of
the first part, as aforesaid, then and in that
case the said party of the second shall pay and
satisfy all the just and bona - fide debts of the
right due anil owing on account of said South
ern Pacific Railroad Company in three equal
payments at three, five and seven months
from such a forfeiture, such debts to be exam
ined and appro ved by the undersigned.
The undersigned being fully authorized
thereto by the parties aforesaid, doth award,
order, and determine that all the stock claim
ed, held or owned in the company of the par
ty of the first part and each and every memlier
thereof be transmitted to G. G. Gregg, at
Marshall, Harrison county Texas, within six
months from this date. It is futher ordered
and determined that in default hereof the said
stock be held and considered barred and forev
er forfeited.
That all stock surrendered and transmitted
as herein provided and approved as bona fide
stock shall be entered upon the hooks of the
Company to the credit of the owner, and a
reissue made and returned to the same in lieu
of the stock now outstanding.
It isjfurtherl awarded that so soon as the
said stock to he returned shall be examined
and approved as hereinbefore provided, that a
meeting of such stockholders be held for reor
ganization and transaction of business of the
Company.
It is further awarded that on the final pay
ment as heretofore provided by the parity of
the first part and the assignment of stock by
the party of the second part, then the party of
the second part shall deliver possession of said
road-bed property and appurtenances belong
ing to the same.
It is further ordered, That all the other
matters submitted to the undersigned for con-
gidertion be reserved for future action.
Done at Committee Rooms in the city of
Marshall, Texas. October 15th, 1858.
G. G. Gregg,
J. Marshall, .
J. M. Woskom,
H. P. Perry,
Benjamin Long,
Committee.
I have examined the foregoing award and
declare the same meets my approbation.
(Signed,) L. P. Grant, President.
J. Fowlkes, President
We certify that the above and foregoing a-
ward of five pages is & correct copy of the ori
ginal on file with us.
G- G. Gregg, [l. s.]
J. Marshall, [l. s.j
Governor’s Message.
EXECUTIVE DEPARTMENT, |
358. j
MrLLEDGEviLL, Ga., Nov. 3d, 1858
Fellow Citizens of the Senate '
and House of Representatives :
It affords me much pleasure to be able .to
state that the financial condition of the coun
try is greatly improved since the adjournment
of your last session. Previous to that time,
the commercial crisis, aggravated by a gener
al suspension of specie payment by the banks
of many of the States, including most of the
banks of this State, attended by distrust and
loss of confidence, had, depressed the spirits
of our people, and seriously affected all the
great interests of our State.
BANKS AND BANKING.
On the 22d day of December last, both bran
ches of the General Assembly passed, by a
constitutional majority, without Executive
sanction, an act entitled “an act to provide
against the forfeiture of the several bank char
ters in this State, on account of non-specie
payment for a given time, and for other pur
poses therein named.” This act made it the
duty of the Governor to withhold proceedings
under the act of 1840, for the forfeiture of the
chartes of such banks in this State as had vio
lated the law, and were in a state of suspension
until the 15th day of this present month, or
till the happening of certain contingencies
mentioned in the act.
In view, doubtless, of the great imposition
practiced upon the people by the banks, in
taking from them usury under the name of ex
change, and otherwise, the usury laws of
this State, so far as applicable to banks, were
changed by the eighth and ninth sections of
said act; by wliich it is made illegal for any
bank or bank agency, by itself, its officers or
agents, directly or indirectly, to loan money
at a greater rate of interest than seven per
cent per annum, and at that rate only for a
longer or shorter time ; or to discount or pur
chase notes, papers, or evidences of debt at a
greater discount than seven per cent per an
num. And all notes, bills, drafts and con
tracts of everj' sort whatever, taken for money
loaned at a greater rate of interest than seven
per cent., as well as all notes, papers and evi
dences of debt discounted or purchased in vio
lation of said act, are declared to be utterly
null and void, and irrecoverable in law.
The tenth section of the act regulates the
per cent which a bank may receive for ex
change, when its own bills are tendered at its
counter in payment therefor, by a citizen of
this State.
The sections containing these provisions
were doubtless inserted in the act for the pur
pose of protecting the people against the usu
rious and exorbitant exactions of the banks.
And to prevent, as lar as possible, violations
of the act, in the particular above referred to
it is enacted by the eleventh section, that,
“The affidavit of bank officers to their annual
reports, shall, in all cases, state that the bank
of which they are officers, has not, by itself*
its officers or agents, in any particular, viola
ted the provisions of this act. ’ ’ And the 12th
section makes the offence perjury, should bank
officers swear falsely in making their reports.
By requiring of bank officers the solemn guar
anty of an oath, under heavy penal sanctions,
that the law has not been violated bv them,
the Legislature no doubt believed they had
protected the people against such illegal prac
tices in future.
Although I withheld my sanction from the
act on account of other objectionable features
in it, and on account of the doubts I enter
tained as to the constitutionality of portions
of it, I have no doubt hut that such portions
of the act as prohibit the taking of usury by
the banks, and regulate the manner of making
their annual and semi-annual reports, which
apply alike to all banks in the State, are both
constitutional and expedient. Entertaining
these views, on the 1st day of June last I is
sued my proclamation, calling on the banks
to make their returns according to law, and
to comply with said eleventh section of the
act of 22d December, 1857. As this act had
been passed l>y the Legislature mainly for the
relief of suspended banks, and at the earnest
solicitations of their friends, I liad reason, in
common with all law abiding citizens of the
State, to suppose that they would render cheer
ful obedience to all its requirements. It is with
much regret, however, that I have to state to
the Legislature, that by far the greater num
ber of the banks whose suspension had been
thus legalized, and whose charters had been so
recently relieved from liability to forfeiture, in
open violation of the statute passed for their
relief, as well as all the banks in the State
which had not suspended, either neglected or
openly refused to obey the law and make their
returns as directed by the positive mandate
of the statute ; thereby placing themselves in
a position of defiance to the constitutional au
thorities of the State.
In this state of things I issued my proclama
tion as required by law, publishing the names
of such delinquent banks, and notifying the
Treasurer of this State that their hills would
not lie received in payment of taxes, or
of any debt due the State or the Central
bank, until they should comply with the laws
and make their returns as directed by the stat
utes ; and this theyj have hitherto neglected
to do. It is evident, therefore, that the pen
alty of excluding their hills from the Treasury
which Is the only penalty now prescribed by
law for a failure to make their returns, is not
sufficient to compel obedience to the require
ments of the statutes. Doubtless some of the
hanks have made more by taking usury, and
hv disregarding in other respects the act of
22d December last, than they have lost by
suffering the present penalty for not making
returns in accordance with existing laws.
For the purposes of compelling these corpor
ations to yield obedience to the law in future
11 respectfully recommend that the penalty for
disobedience be increased, and in addition to
the penalty already prescribed, that a tax of
two per cent a month upon the whole amount
of the capital stock mentioned in the charter
of each delinquent bank, be levied and collec
ted in gold and silver, for the entire time dur
ing which any such bank may in future remain
in a state of disobedience, and fail to make its
returns as directed by the statutes. There can
be no just reasons why wealthy corporations
should be permitted at their pleasure to set the
law at defiance, while individuals are compell
ed to suffer rigorous penalties for its violation.
Die mandates of the law should be obeyed as
promptly and implicity by the most influential
and weaithy as by the poorest and most needy.
This is republican equality, and our people
should lie content with nothing less.
No sooner had tho act of 22d December,
1857, been passed, than the banks, forgetful
of their promises to expand their circulation,
to discount freely and relieve the country, re
fused to discount notes, however good, when
offered to them in a legitimate course of bank
ing business, or extend accomodations to any,
except perhaps a favored few, such as cotton
buyers and other speculators. Merchants and
others compelled to have Northern exchange
were generally unable to obtain it for less
than three per cent. Die price of cotton de
clined, and monetary distress became gener
al throughout the State.
The banks having thus abused the generous
confidence reposed in them by the Legislature
continued to enjoy the benefits of the suspen
sion long after the banks of the groat dries of
the North and West had resumed spede pay
ment, and until the just indignation of an in
jured people, expressed through the public
meetings and otndrwise, became prevalent
that they felt compelled by the fear of future
consequences, to retrace their steps and curtail
the speculation they otherwise would have
made out of the suspension. Diey therefore
prepared to resume on the 1st day of May last;
thus admitting, by their resumption six
months in advance of the time fixed by the
statute, that no such necessity as they repre
sented to the Legislature ever did exist for the
passage of the act. A gentleman of great abil
ity and worth, who is at the head of one of
the most important and influential banks in
the State, in his report of May last, while apol
ogizing for the suspension, and referring to
the fact that the Legislature had given time
till the 15th of November, says : “Our hanks,
impatient under the supposed odium of sus
pension, resolved to resume on the 1st of the
present month,” (May.) It is a fair inference,
therefore, that the banks would have contin
ued the suspension till the time fixed liy the
act for them to resume, hut for the pressure of
public opinion, and their impatience “under the
odium of suspension.” Public opinion having
thus compelled the banks to resume before the
time fixed by the statute, and the crisis having
passed, we rational men, should learn wisdom
by the experience, and tiy to provide as far as
possible against abuses of their privileges by
these corporations in future.
I presume it will not be denied by any one
that we have erred by a too liberal and un
guarded grant of corporate powers and privi
leges to moneyed monopolies. And it is be
lieved that a future extensu n of this policy
would soon enable these monopolies to control
the government of Georgia and make the peo
ple the subjects of their power. It is already
claimed by some, that they now have the pow
er, by combinations and the free use of large
sums of money, to control the political con
ventions and elections of our State, and in tliis
way to crush those who may have the inde
pendence to stand by the rights of the people
in opposition to their aggressive power. I
trust that the bold, independent and patriotic
of Georgia may never be compelled to bow the
neck in subjection to the yoke thus intended
to be imposed by the corporate influence, that
the price of republican liberty as perpetual vig
ilance.
Die monetary and commercial affairs of the
country must necessarily remain subject to
panics, and heavy pressures, at certain, if not
frequent intervals, as long as our present bank
ing system is continued with its enormous
powers and privileges, which have been en
larged and extended by legislative enactment
chartering new banks from year to year. The
people should take this subject into serious
consideration and pronounce upon it a calm
and deliberate judgement. Every intelligent
person must admit that it is impossible for a
bank having a paper circulation three times as
large as the amount of its specie, to redeem
all its bills in spede on demand. Should all
its bills be presented for payment at any one
time, and the specie be demanded, it can then
redeem but one third of them. In that ease,
if the bank has sufficient assets, or property,
the other two-thirds may possibly not be .an
ultimate loss, but payment must be delayed
till the money can be realized by a disposition
of those assets and property, which may not
he till the end of a lengthy and uncertain liti
gation. It is clear, therefore, that our pres
ent imper currency is not a currency convert!
ble, at all times into gold and silver upon pre
sentation ; and that only one-third of it,
should payment be demanded on all at one
time, can, in the nature of tilings, be so conver
tible!, so long as the banks issue.three dollars
in paper for one in coin.
In my judgment no paper currency in sale
which is not so regulated as to be at all times
readily convertible into gold aud silver. It is
true, our people, by a sort of common consent ,
receiveTlie bills of the banks and use them as
money, though in reality they rest upon no
solid spede basis. But sad experience has
taught us that sueli a circulating medium
subjects the country topanicat the first breath
of distrust or suspicion, which may be pro
duced l»y tlie failure of a single bank having a
large circulation and extensive connections
with other banks and may widen and extend
to the prostration of the credit of the whole
country. Such a currency, having no solid
specie basis, can be available only so long as
the community will consent to receive promises
to pay money in place of money itself.
The people take from tlie bauks their bills
as money. The banks receive interest, and
often exchange, upon them. When required
to redeem their bills in specie, they suspend,
if they choose to do so : and then, if an at
tempt is made to coerce payment in specie,
they resist it, holding a rod over the people
by threatening to make them pay upon a
specie basis, is secured to the banks under our
paesent system of legislation as an exclusive
right, while the exercise of similar privileges
upon like terms is deuieil to all individual
citizens of the State by stringent penal enact
ments.
The privilege of using their] own notes as
money gives to the favored few who enjoy it,
immense advantages over their fellow citizens
and may often enable the managers of these
corporations to amass great wealth by their
high salaries and large profits. It may how
ever he siad, that many of the stockholders
are widows and orphans ; that the stock is in
the market for all, and that the dividends are
not greater than the profits realized from
other investments. This may bo admitted.
Indeed, it seems in practice to be gene ally
true, that corporate privileges do not result
so much to the benefit of the mass of stock
holders as to tlie benefit of the few who man
age tlie corporation. To estimate correctly
the profits made out of the people by those
engaged in banking, we must not only count
the dividends of seven, eight or ten per cent
distributed among the stockholders, but we
must also take into the account the banking
houses, real estate and other property purcha
sed out of the profits of the hank and held by
the corporatioiT. Besides, we should consider
a reserved fund of two, three or four hundred
thousand dollars, made up of accumulated
profits, and often kept back by our larger
banks and not distributed among thi stockhol
ders , together with the high salaries of all the
officers of the bank, which must lie before any
dividends are distributed. These sums though
then, without any violation of the letter of the
charter, incur liabilities against the bank to
any amount that does not exceed $1,600,000;
and that too, without any obligation on their
part to leeep in their vaults the $500,000 actual
ly paid in, or a like sum. If they should take
out $400,000 of their specie and invest it in
real estate or other property, leaving but $100,-
000 of specie in the vaults, they may still con
tract debts to the amount of a million and a
half, and may point in triumph to the lan
guage of their charter, and to the fact that the
$500,000 of capital stock was once actually
paid in, as their authority for so doing.
This bank legislation of our State does not
seem to have been well understood by onr peo
ple. They have generally believed that our
banks, by the letter of their charters, were re
quired to have on hand at all times an amount
of specie one third as large as the entire amount
of their liabilities.—The banks have under
stood the matter very differently, and have
not only claimed, but exercised the right when
they regarded it their interest, to extend their
liabilities far beyond three dollars for every
one of specie actually on hand to meet those
liabilities. By examination of their returns
made to this Department in October, 1857, it
will be seen that at the time of the late sus
pension of our banks in Augusta and Savannah,
the liabilities of one of them for hills in circu
lation and individual deposits, exceeded thir
teen dollars for every one dollar of both specie
and bills of other banks which it then had on
hand. Another had only one dollar in specie in
its vaults for every fifteen dollars of its liabili
ties for bills in circulation and deposits. An
other had not one dollar in specie for every seven
of liabilities for bills in circulation and depos
its ; and another hail only one dollar in specie
for every eleven dollars of its liabilities of the
character mentioned above. It is true these
banks had other assets, but those assets were
not money. The question naturally suggests
itself, how can such a currency be convertible
into gold and silver—the money of the consti
tution—on demand or presentation ? How can
a bank with fifteen dollars of cash liabilities for
every one dollar in specie, or even of five dol
lars for one, pay its liabilities promptly on de
mand ? It is impossible. And how can its
bills be justly considered safe as a circulating
medium, or as money, if it cannot redeem them
promptly on demand ?
In consideration of all the imperfections and
abuses of our present banking system, I am of
opinion that we should do all in our power to
bring about its complete reformation, imd if
this be not possible, we should abandon it en
tirely. I am the advocate of no harsh meas
ure that would either violate the legal rights
of the present corporations, (however unwise
ly they were granted,) or that would bring dis
tress upon the people, by a sudden return from
a paper to a specie currency. A reformation
so radical, if attempted, must be the work of
years. If the legislature would continually
refuse to charter any new bank, or to enlarge
the capital stock of, or re-charter nny bank
now in existence, the system would gradually
work Itself out by efflux of time ; air l we might
without any sudden shock, return safely to the
cuirency of the constitution, plant ourselves
upon a firm specie basis, and rid ourselves of a
system against which the great are 1 good men
who conducted the revolution and formed our
constitution intended to guard thei r posterity,
when they declared in the constitution that
nothing but gold and silver coin should be
made a legal tender.
In two of the States of this Union banks are
prohibited by constitutional provision; two
others have no banks, and another had but
two small banks, whose charters, it is said,
have been forfeited by the late suspension.
And J am informed upon what I consider reli
able authority, that the late commercial pres
sure was comparatively but little felt within
the limits of those States.
Should our people determine, however, to
continue tlie present banking system, and to
•charter new banks, increasing their number
and there by increasing tlieir power in the State
I would respectfully urge the importance o
guarding all charters with much greater strin-f
gency in tlie future. Let the charter of each
provide that tlie entire liabilities of the bank
shall, at no time, exceed three dollars for ev
ery one of specie actually in its vaults and bo
na fide the property of tlie hank, on pain of
immediate forfeiture. Let the simple fact of
suspension of specie payment render the char
ter absolutely, null and void. This would de
ter them from'engaging in such wild specula
tions and over issues as compel them to sus
pend in case of pressure. Let provision also
be made that all executions issued against tho
corporation may be levied upon the property
of any stockholder until the creditor be satis
fied, leaving the stockholder to his legal rem
edies against the rest of the stockholders to
enforce contribution among themselves. Let
the bills of the banks in the hands of the peo
ple at the time of suspension, hear interest from
that time till paid. And let the Legislature
retain the right,- by express reservation in the
charter, to alter, modify or repeal it at pleas-
In my opinion it would be ltest for the
ed by the Treasurer and countersigned by the
Secretary of State, with the impression of the
great seal of the State stamped upon it, and a
register or the issue of each kept in the Treas
ury to prevent counterfeit. These certificates
might be made payable to the person to whom
they were first issued or to bearer. They would
supply the place of bank bills so far as the con
veniences of a paper currency are concerned,
while they would be subject to none of the
fluctuations of value and the mirerfaiintiga of
bank bills.—They would be taken at the op
tion only of the creditor in place of gold and
silver. The gold and silver, dollar for dollar,
would, when they were in-circulation, remain
in the vaults of the Treasury to redeem them
when returned to it. These certificates, thus
predicated upon coin in the Treasury, dollar
for dollar, would be receivable in payment of
taxes or of any debt due the State. They would
be a safe medium of exchange, and would, to
the amount of their issue, he a paper currency
at all times convertible into gold and silver
upon presentation at the Treasury. Each dol
lar of paper would have for its basis a dollar of
specie in the Treasury, and as the faith of the
State would be pledged for their redemption,
it would bo impossible for any citizen to sus
tain loss upon them. They would be a cur
rency at all times and under all circumstances
of uniform par value. This would render the
government of the State entirely independent
of all banks and bank agencies, and would in
a very great degree destroy the power of the
banks over the people, while it would give
the people gold and silver change in all their
small transactions, and a paper currency per
fectly secure in many of their larger ones.
The suggestions made by the Secretary of
the Treasury of the United States, (Mr. Cobb,)
in his late report to Congress upon the subject
of the establishment of a Sub-Treasury system
by the States, similar to that of the United
States, and the prohibition of the circulation
of bank bills under the denomination of twen
ty dollars, are, in my judgment, founded in
wisdom, and commend themselves to the seri
ous consideration of the Legislature. The State
of Ohio has already shown her appreciation of
the wisdom of these suggestions, by transfer
ring much of their substance to her statute
book, allowing sufficient time for the gradual
inauguration of the system into practical oper
ation.
Legislature to refuse to grant a charter to any
corporation for any purpose whatever without
retaining a similar power, should its exercise
be required by ihe interests of the State or the
public good. If the corporation is unwilling
to trust the people with this repealing power,
how much more should the people be unwil
ling to trust the corporation without it.
PROHIBITION OF SMALL BILLS.
Several of the States lie ve already passed
laws prohibiting the emission by their banks
of small bills. I once entertained doubts
whether our Legislature could do this without
a violation of the chartered privileges of the
hanks; hut on more mature reflection and
careful examination, those doubts are entire
ly removed from my mind. I therefore recom
mend the passage of a law prohibiting the
emission of small hills by the banks of this
State, and forbidding, under heavy penalties,
the circulation within this State of bills of a
like denomination issued by banks of other
States. Such an act might prohibit the circu
lation of all bills of a denomination under ten
made out of the people by the banks, are not
semi-annually divide damong the stockholders. , ,, - .. ,,
To these add all sums paid to attorneys, agents f ter *™ lve m f ont , hs after
Slc., ana all amounts lost by defaulting agents
which, while they cannot be set down as pro
fits of the corporation, since neither its offi
cers propernor its stockholders are benefited
thereby, are still sums of money which, under
the workings of the system, are drawn by the
corporation from the pockets of the people.
To all this add the large sums lost almost
every year, on account of broken banks, whose
bills are left worthless in the hands of the
people, who have paid full price for them as
money. And take into the account the
further fact that the State, in 1848 and 1849,
issued $515,000 of her bonds to meet her lia
bilities on account of the Central Bank,
$240,000 of wliich are still outstanding. And
that in 1855, she issued $48,500 of bonds to
pay her indebtedness on account of the Darien
bank, which are still unpaid, making $288,500
of bonds on account of these two banks which
still remain a portion of the public debt, the
interest upon which is paid annually out of
the taxes 'of the people—and we may form
some estimate of the amounts which the peo
ple of Georgia have paid and continue to pay
in taxes, and suffer in losses, to sustain the
banking system.
Again, in many instances, those who con
trol the corporation may have great advanta
ges in being able, if t;:cy choose, to obtain
such accommodations as they may desire, by
the use of its funds, when a favorable oppor
tunity for speculation occurs. The dividends
paid to stockholders are therefore no proper,
criterion by which to judge of advantages of
the corporation to those who hold its offices,
and control and manage its capital and its op
erations ; or of the sums lost by the people on
account of the workings of the system.
Dins far I have discussed this question up
on the supposition that tlie liabilities do not
exceed three dollars for every one of sjiecie ac
tually on hand in the banks to meet and satis
fy them. This supposition is more favorable
to many of the banks than facts will justify.
The law of their charters only requires that
their liabilities shall not exceed three dollars
for every one of capital stock actually paid in,
and not three dollars for every one of specie on
hand to meet those liabilities. As an illustra
tion of the error of our present legislation in
incorporating banks, suppose the amount of
the capital stock of the bank be limited by the
charter to $500,000, which is to lie paid in, in
gold and si ver, by the stockholders. The char
ter then provides that the liabilities of the
bank shall at no time exceed three times the
amount of the capital stock actually paid in.
The stockholders pay in the $500,000 in gold
aijd silver. The directors of the bank may
of the act, aud those of a denomination under
twenty dollars in six months thereafter, or at
such other stated times as might lie thought
best, so as not to embarrass the business trans
actions of the country. Die effect of such a
law would be to cause small bills to be with
drawn from circulation, and as they must be
redeemed by the banks with specie, the specie
would go into cii culation in their stead. This
would cause gold and silver to take the place
of bank bills in all the smaller business trans
actions. The laborer would then receive the
price of liis labor in gold and silver, the farm
er of small means would generally receive the
price of his produce in gold and silver, which
would remain good however much bank bills
might depreciate.
SUB-TREASURY SYSTEM.
I also beg leave to call the attention of the
General Assembly to the propriety of establish
ing by law a system for our State similar to
the Sub-treasury system of the United States,
the wisdom of which has been fully demonstra
ted by the beneficial results of its practical op
eration. I earnestly recommend the adoption
of such a system- Let all payments into the
treasury, after a rejisonable time to be fixed
by the Legislature, be made hi gold and silver,
and let the State pay the interest upon her
public debt, the salaries of her officers, the per
diem of her Legislators, the money due the
several counties for school purposes, together
with all her other liabilities, in gold and sil
ver. Of course the system should go into op
eration gradually. Tliis, in connection with
the prohibition of the circulation of small bills,
would keep out of the banks and in circulation
among the people a large amount of coin, pla
cing the currency upon a much m< re solid spe
cie basis, making the people more independent
of banks, and enabling them to withstand the
shock with much less injury in case of a com
mercial crisis and hank suspension.—It is be
lieved that no serious inconvenience could re
sult to the tax payer from such a law, as the
gold and silver paid into the Treasury by those
indebted to the State, would be returned by
tho State in the payment of her debts due to
her creditors, and would again go into circula
tion among the people. Shouldany inconven
ience be apprehended in the trans[)ortation of
specie from tlie treasury to the creditor, pro
vision might he made authorizing certificates
of deposit to be issued, which might he paid to
the creditor at Ids request in place of the coin.
These certificates of deposit might be of such
denomination as the Legislature m iy prescribe,
handsomely engraved upon steel plates, which
plates should lie deposited in the Treasury for
safe keeping. Each certificate might he sign-
WESTERN & ATLANTIC RAIL ROAD.
For a statement of the present condition of
the Western & Atlantic Railroad, its opera
tions and incomes for the fiscal year ending
30th September last, I beg leave to refer you to
the report of Dr. John W. Lewis, its able and
efficient Superintendent, who has shown him
self to be a most vigilant, active, and valua
ble public servant. In passing this well mer
ited compliment upon the faithful Superin
tendent, I would do injustice to his associate
officers, and the othor agents and employees
of the Road, were I to fail to express my entire
confidence in their integrity and business qual
ifications, and to commend the zeal and ener
gy with which they have exerted themselves
for the success of the Road and the advance
ment of the best interests of the State. For
their efficiency, fidelity and integrity they
have my sincere thanks, and are, in my opin
ion, entitled to the thanks of the whole peo
ple of Georgia.
Owing to the commercial pressure, and the
consequent stagnation of trade and business,
the gross incomes of the Road during the pres
ent year, from freights and travel, have been
less than they were for the previous year,
which was one of unusual prosperity. The
low price of corn, wheat and other kinds of
grain during the present year, has in a great
degree, prevented their shipment. Not only
were the prices of wheat much lower than
they were the year previous, but the quantity
made in all that section of country which
supplies the Road with freight, was much
less.
Merchants limited their purchases of goods
to the limited demand for them in the country;
hence, the diminution of incomes to the
Road on account of freights on merchan
dize.
That portion of the Road track between
Tunnel Hill and Chattanooga, (seven miles
excepted) was in a very bad condition when
Dr. Lewis took charge of the Road, and it has
required a great deal of costly repairs. A con
siderable portion of the track between those
points has been taken np and thoroughly re
paired, and small stones pounded into the earth
under the new cross ties at several places
where in wet weather the earth is so soft that
the Road-bed could not otherwise be made
firm. This kind of repairs is quite expensive,
but is believed to be cheapest in the end, as
the track in these soft places will remain firm
when once bedded in stone. The entire track
is believed to be in better condition than it
has been for several years, (a force of about
three hundred hnnds having been employed
in its repair most of the summer,) and all the
rolling stock is in good order. Repairs have
also beena Itely made at Alatoona, Petit’s
Creek and the Tunnel.
Since your last meeting one thousand tons
of new T iron have been purchased, which has
all been paid for since the 1st day of January
last- Diis will lay about eleven miles of the
track with new, heavy bar. Part of this iron
has already been laid down upon the track,
and the remainder, now being received, will
soon be laid down. Other new iron will be
purchased as fast as it is needed,
It is a matter of great importance that the
Road lie kept in good order. For this purpose
it is proper that several miles of the track at
different places should be laid with new iron
every year ; otherwise the iron on a large por
tion of the track might wear out at the same
time, requiring a very heavy outlay to replace
it- I hold that no administration, for the
purpose of paying money into the Treasury or
otherwise has a right to let the Road run down.
He who does it deserves to be condemned; and
I'am willing that my administration, so far as
the management of the Road is concerned,
shall be judged by this standard.
According to the report of the Senate Com
mittee, the present Superintendant, when he
took charge of the Road, 1st January last, was
chargeable with assetts amounting to about
$56,324 15, due from connecting Roads and
solvent agents, with a balance in the Treasu
ry of $15,907 43. And ho paid according to
the report, from 1st January to 1st July the
sum of $157,773 23 to creditors of the road, on
account of indebtedness contracted prior to 1st
January, 1858, and had in the treasury of the
Road 1st July a balance of $35,010 95. It
will he seen therefore, that the amount in the
treasury was much smaller 1st January than
it was 1st July ; and that the amount of debts
contracted by former administrations of the
Road, and paid by the present Superinten
dent, from 1st January to 1st July. 1858, was
$100,44908 larger than theamouut of solvent
assets turned over to him. The Present Su-
peritendent would seem therefore to be enti
tled to this sum, pud out of his net comings
as a cash credit. In this sum is included the
price of400 tons of the new iron above men
tioned, which was ordered l>y the former Su
perintendent prior to 1st January last, and has
been paid for and laid down by the present
Superintendant since that time ; who has also,
through the Treasurer of the Road, paid into
the State Treasury, commencing with the
month of March last, $200,000. Of this sum
$25,000 had been paid in at the date of his re
port of 30th September and $25,000 since
that time for the month of October. The cur
rent expenses of the Road have been paid.—
No new debts are permitted to accumulate
which are not promptly paid, if the creditor
can be found, at the end of each month.
The new passenger depot at Chattanooga is
in process rf construction under the superin-
tendeuce of the Chief Engineer of the Road,
with wookmen hired by the general Superin
tendent. Die building is 101 feet wide and
303 feet long, and is a very solid and well built
structure. It is built of stone to the spriug
of the arches,, which are turned with brick. It
is expected to be completed and ready for use
in a few weeks. All expenses of this structure
have been paid mothly. It is intended that
the depot be used by all the Roads connecting
at that place. As some of these Roads were
not in a condition to incur the expense at the
time the work was commenced of contributing
to its erection, it was thought best as there
was great need of the depot, for our Road to
go on and build it, and take the obligations of
connecting Roads for their proportion of the
expense. The Nashville & Chattaaooga Road
takes one fonrth interest in the depot, and
pays $10,000. The East Tennessee and Geor
gia Railroad Company agrees to take another
fourth, and to pay a like sum, at two or three
years from the time they arc ready toflae it,
with semi-annual interest at the rate of seven
per cent per annum; and it is believed that
the Memphis and Charleston Road will also
take a fourth interest.
Dr. Lewis took charge of the Road the 1st
day of Janniuy last, and was under the neces
sity of applying the net earnings of the months
of January and February in payment of debts
against the Road which existed prior to that
time, and for necessary repairs on the Road,
including payment for iron previously order
ed. It will be seen that the payments made
into theState Treasury from the 1st of March
last to the present time, have averaged $25,-
000 per month. It is believed in future that
all necessary repairs can be made, all' current
expenses promptly paid, every department of
the Road kept in first rate order and that an av
erage of $25,000 a month can be paid into the
State Treasury, from year to year,
This may be regarded by some as an over
estimate of the legitimate uet earnings to be
realized in future from the road. As an evi
dence, however, of my confidence in its cor
rectness, I have no hesitation in saying that I
would risk my personal fortune on the result.
Were I satisfied that it were the desire of the
Legislature and people of Georgia I would
bind myself as an individual to take the road
for a term of ten years commencing 1st Janu
ary next; and I would give bond in any reas
onable sum which might be required, with
ample security, to return it in as good order as
it was 1st January last. I would lay down ten
miles of new Tiron on the track every year,
the old iron taken up, or the price of it, being
mine. I would take the benefits and the bur
thens of all contracts made by the authorities
of the road since the 1st of January last, recei
ving all sums owing to the road and paying
all debts owing by the road on contracts made
since that time. I would bind myself that
the present price of freights should at no time
be increased, if such increase would make the
freights higher than the average price charg
ed for freights by the other roads in Georgia ;
and I would pay into the Treasury of the State;
$25,000 per month for the use of the road, its
equipments and appurtenances, to be paid
monthly in cash or bonds of the State, or in
the bonds which now constitute the funded
debt of the Road ; for the payment of which,
the faith of the State has been pledged for
years. And every time a payment should he
delayed twenty-five days after it was due, 1
would forfeit and pay to the State $10,000
for the delay. Diis would be $400,000 pel-
annum principal besides interest, And a
term of ten years at these rates, counting sim
ple interest at seven per cent per annum on
each monthly payment from the time it was
paid into the Treasury till the end of the
lease, would yield the sum of $4,041,250, for
the use of the road for that time.
Regarding the question as s ettled, there
fore, that the road with proper management
will pay into the Treasury $25,000 per month
or three hundred thousand dollars annually
clear of all expenses and repairs, the inquiry
naturally arises, what disposition shall be
made of the money.
PAYMENTS OF THB PUBLIC DEBT—COMMON SCHOOL
The public debt of the State amounts at
present to $2,630,500, payable at different
times during the next twenty years. A largo
portion of this debt has been contracted from
time to time on account of the State Road.
This debt it will be remembered, is subject by
legislation, already liad, to be increased $900,-
000, on account of the State’s subsciiption for
stock in the Atlantic and Gulf Railroad Co.
This would make the whole debt $3,530,500
should no part of it bo redeemed before the
bonds of the State for the above mentioned
$900,000, shall have been iusued. By tho
terms of the contract with the bond holders,
$289, 200 of this debt is now subject to be
paid at the option of the Shite, though
payment cannot be demanded till 1863 and
1868. The central Bank bonds are also falling
due in considerable sums annually. Good faith
requires that the debt of the State be promply
met when due. And sound policy dictates
that such bonds as are due or not, at the op
tion of the State, be taken up as fast as she has
the means.
The net earnings of the Western and Atlan
tic Railroad are already pledged for the pay
ment of a large portion of this debt. I there
fore recommend the passage of an act setting
apart $200,000 per annum of the net enmings
of the Road, to be applied in payment and pur-
flhase of the public debt. And, in view of the
great and acknowledged necessity existing for
the education of the children of the State,
and of the immence advantage which would
result from the establishment of a practical
Common School system, I farther recommend
that asumas large as the entire amount of the
public debt - be set apart as a perminent Com
mon School Fund for Georgia, to be increased
as fast as the public debt is diminished, am.1
that the faith of the State be solemnly pledged
that so no part of this sum shall ever be ap
plied to, or appropriated for auy other pur
pose than that of education. Let the act
make it the duty of the Govorner each year
as soon as he shall have taken up the $200,-
000 or the State’s bonds, to issue $200,000 of
new bonds, payable at some distant period to
be fixed by the Legislature, to the Secretary
of State, as trustee of 'the Commou School
Fund of the State, with semi-annual interest
at six per cent per annum. The bonds to be
deposited in the office of the Secretary of State.
As the public debt is thus annually diminish
ed the School Fund will be annually increas
ed, until the whole debt is paid to the credi
tors of the State, and the amount paid conver
ted into a School Fund. And as the fund is
increased from year to year, the amount of in
terest to be used for school! purposes will be
likewise increased.
Should this plan be adopted, in a few years
the school fund of Georgia, including the pres
ent fund for that purpose, would be in rouni I
numbers $4,000,000. Die amount of interest
accruing from this fund, to he expended in
erecting school houses and paying teachers,
would be $240,000, per annum. I am aware
of the difficulties which have been encountered
by those who have attempted heretofore to
devise a practical and equal school system
for the State, owing in a great degree, it is
believed, to the fact that portions of our
State are very densly, while others are quite
sparsely populated- But the fact of our ina
bility to accomplish all we may desire is no
sufficient reason why we should neglect to do
that which is in our power. Probably the
principle causef o onr failure in the past is at
tributable to a lack of funds and of competent
teachers.
Withthegradualincrea.se of the fund pro
posed, it is not doubted that the wisdom of
our State would, from time to time, improve
our present defective system till it would be
so perfected as to afford the advantage of an
education to all or nerarly all the children of
the State. Let the teachers lie paid by
the State, and let every free white child in the
State have an equal right to attend and re
ceive instruction in the public schools. Let it
be a Common School, not a Poor School Sys
tem. Let the children of the richest and tin-
poorest parents in the State, meet in the school
room on terms of perfect equality of right.
Let there be no aristocracy there but an aris
tocracy of color and of conduct, In other
words, let every free white •hild in Georgia
whose conduct is good, stand upon an equali
ty of right with any and every other one in
the school room. In this way the advantages
of education might lie gradually diffused
among the people; and many of the noblest in
tellects in Georgia, now bedimed by poverty
and not developed for want of education,
might be made toshino forth in all their splenJJ
dor, blessing both church and State by their
noble deeds.
Should $4,000,000 lie insufficient to raise
annually the sum required, the fund might lie
increased from the incomes of the road, to any
amount necessary to accomplish the object.
The interest on this fund should be semi-an
nually distributed equally, among the coun
ties, in proportion to the whole number of
free white children in each between 6 and six
teen, or of such other age as the legislature
may designate. Authority should also be
left with each county to tax itself, at its own
pleasure to increase its school fund, as at pres
ent. And it should be left to the Inferior
Court, or school commissioners of each coun
ty to lay off the county into such school Dis
tricts, as will be most convenient to its popu
lation, having due regard totheir number and
condition.
[CONCLUDED IN THE INSIDE.]
