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COLUMBUS,iriIIIWDAY, NOVEMBER 1, IS*> S . MESSAGE. executive” DEPARTMENT,) Millkdgeville, Nov. 3, ISSB. J Fellow-Citizens of the {Senate and House of Representatives: It affords me much pleasure to be aide 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 general suspension of specie payment by the banks ol many of the States, including most of the banks of this State, attended by d!strust 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 branches 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 charters of such banks in this State as had violated the law, and were in a state of sus pension, until the 15th day of this present month, or till the happening of certain contin gencies 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 which it is made illegal for any bank or bank agency, by itself, its officers or 1 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 purchase notes, papers, or evidences of debt, at a greater discount than seven per cent, per annum. — And all notes, bills, drafts and contracts, of every 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 vi olation 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 far as possible, violations of the act, in the particulars above referred to, it is enacted by the eleventh section, that, “ The affidavit of bank officers to their annual and semi-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, violated the provisions of this act. Afod the twelfth section makes the offence per jury, should bank officers swear falsely in ma king their reports. By requiring of bank olfi cers the solemn guaranty of an oath, under heavy penal sanctions, that the law has not been violated by them, the Legislature no doubt believed they had protected the people against such illegal practices in future. Although 1 withheld my sanction from the act on account of other objectionable features in it, and on account of the doubts I entertain ed as to the constitutionality of portions of it, I have no doubt but that such portions of the act as prohibit the taking of usury by the banks, and regulate the manner of making their an nual and semi-annual reports, which apply alike to all banks in the State, are both consti tutional and expedient. Entertaining these views, on the Ist day of June last I issued 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, 1557. As this act had been passed by the Legislature mainly for the relief of the suspended banks, and at the earnest solicita tions of their friends, I had reason, in common with all law-abiding citizens of the State, to suppose that they would render cheerful obe dience to all its requirements. It is with much regret, however, that I have to state to the Le gislature, that by far the greater number of the banks whose suspension had been thus legal ized, and whose charters had been so recently relieved from liability to forfeiture, in open vi olation of the statute passed for their relief, as well as all the banks in the State which had not suspended, either neglected, or openly re fused to obey the law, and make their returns as directed by the positive mandate of the statute; thereby placing themselves in a posi tion of defiance to the constitutional authori ties of the State. In this state of things I issued my proclama tion, as required bylaw, publishing the names of such delinquent banks, and notifying the Treasurer of this State that their bills would not be 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 statutes; and this they have hitherto neglected to do. It is evident therefore, that the penalty of exclud ing their bills from the Treasury, wlifch is the only penalty now prescribed by law for a fail ure to make their returns, is not sufficient to compel obedience to the requirements of the statutes. Doubtless some of the banks have made more by taking usury, and by disregard ing in other respects the act of 22d December last, than they have lost by suffering the pres ent penalty for not making returns in accord ance with existing laws. For the purpose of compelling these corpo rations to yield obedience to the law in future, I 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 col lected in gold and silver, for the entire time during which any such bank may in future re main 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 plea sure to set ihe law at defiance, while individ uals are compelled to sutler rigorous penalties lor its violation. The mandates of the law should be obeyed as promply and implicitly by the most influential and wealthy as by the poorest and most needy. This is republican equality, and our people should be content with nothing less. No sooner had the act of 22d December. 1557, 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 to extend accommodations to any except perhaps to a favored few, such as cotton buyers and other speculators. Mer chants and others, compelled to have Northern exchange, were generally unable to obtain it for less than three per cent. The price of cot ton declined, and monetary distress became general 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 alter the banks of the great cities of the North and West had resumed specie pay ment, and until the just indignation of an in jured people, expressed through the public press, by public meetings and otherwise, be came so prevalent that they felt compelled by fear of future consequences, to retrace their steps and curtail the speculation they other wise would have made out of the suspension. They therefore prepared to resume on the Ist day of May last; thus admitting, by their re sumption six months in advance ot the time fixed by the statute, that no such necessity as they represented to the Legislature ever did exist for the passage of the act. A gentleman of o-reat ability 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 apologising for the suspension, and re ferring to the fact that the Legislature had given time till the 15th November, says: “Our banks, impatient under the supposed odium of suspension, resolved to resume on the Ist of the present month,” (May.) It is a fair infer ence, therefore, that the banks would have continued the suspension till the time fixed by the act for them to resume, but for the pres sure of public opinion, and their impatience “under the supposed odium of suspension ” Public opinion having thus compelled the banks to resume before the lime fixed by the statute, and the crisis having passed, we, as rational men, should learn wisdom by experi ence, and try to provide as far as possible against abuses of their privileges by these cor porations in future. 1 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 extension of this policy would soon enable these monopolies to con trol the government of Georgia, and make the people the subjects of their power. It is al ready claimed by some, that they now have the power, by combinations and the free use of large sums of money, to control the politi cal conventions and elections of our State, and in this way to crush those who may have the independence to stand by the rights of the people, in opposition to their aggressive power. I trust that the bold, independent and patriotic people of Georgia may never be compelled to bow the neck in subjection to the yoke thus intended to be imposed by the corporate pow ers of the State. Let it not be forgotten, how ever, by those who have watched with anxi ety the growing power of corporate influence that the price of republican liberty is perpet ual vigilance. The monetary and commercial afl'airs of the country must necessarily remain subject to panics, under heavy pressures, at certain, if not frequent intervals, as long as our present banking system is continned 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 judgment. 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 specie 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 be till the end of a lengthy and uncertain liti gation. It is clear, therefore, that our present paper currency is not a currency convertible, at all times, into gold and silver upon presen tation ; and that only one-third of it, should payment be demanded on all at one time, can, in the nature of things, be so convertible, so long as the banks issue three dollars in paper for one in coin. In my judgment no paper currency is safe which is not so regulated as to be at all times readily con vertible into gold and silver. It is true, our peo ple, by n, sort of common consent, receive the bills of the banks and use them as money though in re ality they rest upon no solid specie basis. But sad experience has taught us that such a circula ting medium subjects the country to panic at the first breath of distrust or suspicion, which may be produced by the 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 the bank their bills as mo ney. The banks receive interest, and often ex change, upon them. When required to redeem their bills in specie, they suspend, if they choose to do so : and then, if an attempt 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 debts contracted by them for the bills of the banks; notwithstanding those bills, when they received them, rested on a basis of only one third specie. The high perogative of exercis ing banking privileges, and of issuing their own notes or bills to be circulated as money, not rest ing upon any solid specie basis, is secured to the banks under our present system of legislation as an exclusive right, while the exercise of similar priv ileges upon like terms is denied 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 ad vantages over their fellow citizens, and may often enable the managers of these corporations to amass great wealth by their high salaries and large prof its. It may, however, be said, that many of the stockholders are widows and orphans; that the stock is in the market for all, and that the divi dends are not greater than the profits realized from other investments. This may be admitted. In deed, it seems in practice to be generally true, that the corporate privileges do not result so much to the benefit of the mass of stockholders as to the benefit of the few who manage the 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, Teal estate and other property purchased out of the profits of the bank and held by tlie corporation. Besides, we should consider a reserved fund of 2, 3 or 4 hundred thousand dollars, made up of ac cumulated profits, and often kept back by our lar ger banks and not distributed among the stock holders, together with the high salaries of all the officers of the bank, which must be paid before any dividends are distributed. These sums though made out of the people by the banks, are not semi-annually divided among the stockholders.— To these add all sums paid to attorneys, agents, tfcc., and all amounts lost by defaulting agents, which, wile they cannot be set down aS profits of the corporation, sinee neither its officers proper nor its stockholders are benefitted 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 tlie 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 184 Sand 1549, issued $515,000 of her bonds to meet her liabilities on account of the Central Bank. $240,000 of which are still outstanding.— And that in 1555, she issued $45,500 of bonds to pay her indebtedness on account of the Darien bank, which are still unpaid, making $285,500 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 people of Georgia hare paid and continue to pay in taxes, and suffer in losses, to sustain the banking system. Again, in many instances, those who control the corporation may have great advantages in being able, if they choose, to obtain such aeeommoda i >ns as they may desire, by the use of its funds, when a favorable opportunity for speculation oc curs. The dividends pai l to stockholders are there fore no proper criterion by which to judge of the advantages of the corporation to those who hold its offices, and control and manage its capital und its operations; or ot the sums lost by the people on account of the workings of the system. Thus far I have discussed this question upon the supposition that the liabilities do not exceed three dollars for every one of specie actually on hand in j the banks to meet and satisfy them. Thissuppo- ■ sition 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 illustration of the error of our present legislation in incorpo rating banks, suppose the amount of the capital stock of the bank be limited by the charter to $500,000, which i3 to be paid in, in gold and sil ver, by the stockholders. The charter then pro vides 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 and silver. The directors of the bank may then, without any violation of the letter of the charter, incur liabilities against the bank to any amount that does not exceed $1,500,- 000 ; and that too, without any obligation on their part to keep in their vaults the $500,000 actually paid in, or a like sum. If they should take out 8400,000 of their specie and invest it in real estate or other property, leaving but SIOO,OOO of specie in the vaults, they may still contract debts to the amount of a million and a half, and may point in triumph to the language 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 our people. — They have generally believed that our banks, by the letter of their charters, were required 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 understood the matter very differ ently, und have not only claimed, but exercised the right when they regarded it their interest, to ex tend 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 suspension of our banks in Augusta and Savannah, the liabilities of one of them for bills in circulation and individual deposits exceed thirteen dollars for every one dol lar of both specie and bills of other banks which it then had on hand. Another had only one dol lar in specie in its vaults for every fifteen dollars of its liability 4 for bills in circulation and depos its. Another had not one dollar in specie for every seven of liability for bills in circulation and de posits. And another had only one dollar in specie tor every eleven dollars of its liabilities of the charac ter 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 sil ver —the money of the constitution —on demand or presentation ? How can a bank with fifteen dollars of cash liabilities for every one dollar in specie, or even of five dollars for one, pay its lia bilities promptly on demand ? It is impossible. And how can its bills be justly considered safe as a circulating medium, or as money , if it cannot re deem 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, and if this be not possible, we should abandon it entirely. I am the advocate of no harsh measure that would either violate the legal rights of the present corporations, (however unwisely they were granted,) or that would bring distress upon the people, by a sudden return from a paper to a specie currency. A re formation so radical, if attempted, must be the work of years. If the legislature would continu ually refuse to charter any new bank, or to en large the capital stock of, or re-charter afty bank now in existence, the system would gradually work itself out by efflux of time; and we might, with out any sudden shock, return safely to the curren cy of the constitution, plant ourselves upon a firm specie basis, and rid ourselves of a system against which the great and good men who conducted the revolution and formed our constitution intended to guard their 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 forfeit ed by the late suspension. And I am informed upon what I consider reliable authority, that the late commercial pressure was comparatively but little felt within the limits of those States. Should our people determine, however, to con tinue the present banking system, and to charter new banks, increasing their number and thereby increasing their power in the State, I would re spectfully urge the importance of guarding ail charters with much greater stringency in the fu ture. Let the charter of each provide that the entire liabilities of the bank shall, at no time, ex ceed three dollars for every one of specie actually in its vaults and bona fide the property of the bank, on pain of immediate forfeiture. Let the simple fact of suspension of specie payment render the charter absolutely null and void. This would deter them from engaging in such wild specula tions an over issues as compel them to suspend in case of pressure. Let provision be made that all executions issued against the corporation may be levied upon the property of any stockholder until the creditor be satisfied, leaving the stockholder to his legal remedies against the rest of the stock holders to enforce contribution among themselves. Let the bills of the banks in the hands of the peo ple at the time of suspension, bear interest from that time till paid. And let the Legislature re tain the right, by express reservation in the char ter, to alter, modify or repeal it at pleasure. In my opinion it would be best for the Legislature to refuse to grant a charter to any corporation for any purpose whatever without retaining a similar pow er, should its exercise be required by the 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 un willing to trust the corporation without it. Prohibition of Small Bills. Several of the States have already passed laws prohibiting the emission by their banks of small bills. I once entertained doubts whether our Le gislature could do this without a violation of the chartered privileges of the banks; but on more mature reflection .and careful examination, those doubts arc entirely removed from my mind. I therefore recommend the passage of a law prohib iting the emission of small bills 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 circulation of all bills of a denomination under ten dollars, after twelve months after the passage of the act, and those of a denomination under twenty dollars in six months thereafter, or at such other stated times as might be thought best, so as not to embarrass the business transactions of the country. The ef fect of such a law would be to cause small bills to be withdrawn from circulation, and as they must be redeemed by the banks with specie, the specie would go into circulation in their stead. This would cause gold and silver to take the place of bank bills in all the smaller business transactions. The laborer would then receive the price of his la bor in gold and silver, the farmer of small means would generally receive the price of his produce in gold and silver, which would remain good howev er much bank bills might depreciate. Sub-Treasury System. I also beg leave to call the attention of the Gen eral Assembly to the propriety of establishing by 1 law a system for our State similar to the Sub-trea sury system of the United States, the wisdom of which has been fully demonstrated by the benefi cial results of its practical operation. I earnestly recommend the adoption of such a system. Let all payments into the treasury, after a reasonable time to be fixed by the Legislature, be made in gold and silver, and let the State pay the interest upon her publie 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 silver. 0- course the system should go into operation graduf ally. This, 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, placing the currency upon a much more solid specie making the people more independent of banks, and enabling them to withstand the shock with much less injury in case of a commercial crisis and bank suspension. It is believed that no serious-incouvenience could result 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 the State in the payment of her debts due to her creditors, and would again go into circulation among the people., | Should any inconvenience be apprehended in the transportation of specie from the treasury to the | creditor, provision might be made authorizing cer i tificates of deposit to be issued, which might be | paid to the creditor, at his request, in place of the coin. These certificates of deposit might be of such denominations as the Legislature may pre ; scribe, handsomely engraved upon steel plates, which plates” should be deposited in the Treasury ; for safe keeping. Each certificate might be signed i by the Treasurer and countersigned by the Seerc ! tary of State, with the impression of the great seal of the State stamped upon it, and a register of the issue of each kept in the Treasury to prevent coun terfeit. These certificates might be made payable to the person to whom they first issued, or to bear er. They would supply the place of bank bills so far as the conveniences of a paper currency are concerned, while they would be subject to none of the fluctuations of value and the uncertainties of bank bills. They would be taken at the option 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 receiva ble in payment of taxes or of any debt duo the State. They would be a safe medium of exchange, ! and would, to the amount of their issue, be a pa per currency at all times convertible into gold and silver upon presentation at the Treasury. Each dollar 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 be impossible for any citizen to sustain loss upon them. They would be a currency at all times and under all circumstances of uniform par value. This would render the government of the State en tirely independent of all banks and bank agencies, and would in a very great degree destroy the pow er 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 perfectly secure in many of their larger ones. The suggestions made by the Secretary of the Treasury of the United States, (Mr. Cobb,) in his lato report to Congress upon the subject of the es tablishment of a Sub-Treasury system by the States, similar to that of the United States, and the prohibition of the circulation of bank bills un der the denomination of twenty dollars, are, in my judgment, founded in wisdom, and commend them selves to the serious consideration of the Legisla ture. The State of Ohio has already shown her appreciation of the wisdom of these suggestions, by transferring much of their substance to her statute book, allowing sufficient time for the grad ual inauguration of the system into practical ope ration. Western & Atlantic Rail Road. For a statement of the present condition of the Western & Atlantic Railroad, its operations 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 Superintend ent, who has shown himself to be a most vigilant, active, and valuable public servant. In passing this well merited compliment upon the faithful Superintendent, I would do injustice to his asso ciate officers, and the other agents and employees of the Road, were I to fail to express my entire confidence in their integrity and business qualifi cations, and to commend the zeal and energy with which they have exerted themselves for the success of the Road and the advancement of the best in terests of tno State. For their efficiency, fidelity and integrity, they have my sincere thunks, and are, in my opinion, entitled to the thanks of the whole people of Georgia. Owing to the commercial pressure, and the con sequent stagnation of trade and business, the gross incomes of the Road during the present 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 merchandize. 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 considerable portion of the track between those points has been taken up and thor oughly repaired, and small stones pounded into the earth under the new cross tics 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 condi tion than it has been for several years, (a force of about three hundred hands having been employed in its repair most of the summer,) and all the roll ing stock is in good order. Repairs ha vc also been lately 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 Ist day of January last.— This 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. Oth er new iron will be purchased as fast as it is need ed. It is a matter of great importance that the Road be kept in good order. For this purpose it is proper that several miles of the track at dilferent places should lie laid with new iron every year; otherwise the iron on a large portion of the track might wear out at the same time, requiring a very heavy outlay to replace it. I hold that no ad-’ ministration, for the purpose of paying money in to the Treasury or otherwise, has a right to let the Road ruu down. He who does it deserves to be condemned; and I am willing that my adminis tration, so far as the management of the R< ai is concerned, shall be judged by this standard. According to the report of the Senate Commit tee, the present Superintendent, when he took charge of the Road, Ist January last, was charge able with assets amounting to about $57,324 15, due from connecting Roads and solvent agents, with a balance in the Treasury of $15,907 43. And he paid, according to the report, from Ist Jan uary to Ist July the sum of $157,773 23 to credit ors of the Road, on account of indebtedness con tracted prior to Ist January, 185S, and had in the treasury of the Road Ist July a balance of $35,010 96. It will be seen therefore, that the amount in the treasury was much smaller Ist January than it Avas Ist July; and that the amount of debts contracted by former administrations of the Road, and paid by the present Superintendent, from Ist January to Ist July, 1858, tvas $100,449 08 larger than the amount of soWent assets turned over to him. The present Superintendent would seem, therefore, to be entitled to this sum, paid out of bis net earnings as a cash credit. In this sum is in cluded the price of 400 tons of the new iron above mentioned, Avhich was ordered by the former'Su perintendent prior to Ist January last, and has been paid for and laid down by the present Super intendent since that time; Avho has also, through the Treasurer of the Road, paid into the State Treasury, commencing Avith the month of March last, $200,000. Of this sum $175,000 had been j paid in at the date of his report of 30th September, ; and $25,000 since that time for the month of Oeto- j her. The current expenses of the Road have been j paid. No new debts are permitted to accumulate j Avhich 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 of construction under the superintendence of the Chief Engineer of the Road, with workmen hired by the general Superintendent. The build ing is 101 feet wide and 303 feet long, and is a very solid and well built structure. It is built of stone to the spring of the arches, Avhich are turned with brick. It is expected to be comple ted and ready for use in a few weeks. All ex penses of this structure haA e been paid monthly. It is intended that the depot be used by all tue Roads connecting at that place. As some of these Roads Avere not in a condition to incur the expense at the time the Avork was commenced of contributing to its erection, it was thought best, as there was great need of the depot, lor our Road to go on and build it, and take the obligations of the connecting Roads for their proportion of the expense. The Naeliville & Chattanooga Road takes one fourth interest in the depot, and pays SIO,OOO. The East Tennessee and Georgia Rail road Company agrees to take another fourth, and to pay a like sum, at lavo and three years from the time they are ready to use it, Avith semi-annu al interest at the rate of seven per cent per an uum: and it is believed that the Memphis and Charleston Road will also take a fourth interest. Dr. LeAvis took charge of the Road the Ist day of January last, and Avas under the necessity of applying the net earnings of the months of Janu ary and February in payment of debts against the Road Avhich existed prior to that time, and for necessary repairs on the Road, including pay ment for iron preA'iously ordered. It Avill be seen that the payments made into the State treasury from the Ist of March last to the present time, have averaged twenty-five thousand dollars per month. It is believed in future that all necessa ry repairs can be made, all current expenses promptly paid, every department of the Road kept in first rate order, and that an average of $25,000 a month can bo paid into the State treas ury, from year to year. This may be regarded by some as an over esti mate of the legitimate net earnings to be realized in future from the Road. As an evidence, lioav ever, of my confidence in its correctness, I have no hesitation in saying that 1 would risk my per sonal fortune on the result. Were I satisfied that it Avere the desire of the Legislature and people of Georgia, I Avould bind myself as an individual to take the road for a term of ten years commencing Ist January next : and I would give bond in any reasonable sum Avhich might be required, Avith ample security, to return it in as good order as it Avas Ist January last. 1 Avould lay down ten miles of neAv T iron on the track every year, the old iron taken up, or the price of it, being mine. I would take the benefits and the burthens of all contracts made by the authorities of the road since the Ist of January last, receiving all sums owing to the road and paying all debts OAving by the road on contracts made since that time. I Avould bind myself that the present price of freights should at no time be increased, if such in crease Avould make the freights higher than the average price charged for freights by the other roads in Georgia; and I would pay into the trea sury of the State .-£25,000 per month for the use of the road, its equipments and appurtenances, to be paid monthly in cash or in bonds of the State, or in the bonds Avhich now constitute the funded debt of the Road; for the payment of Avhich, the faith of the State has been pledged for years. And every time a payment should be delayed tAventy iive days after it Avas due, I would forfeit and pay to the Stete SIO,OOO for the delay. This would be $300,000 per annum principal besides interest. And a term of ten years at these rates, counting ssmple interest at seven per cent per annum on each monthly payment from the time it Avas paid into the Treasury till the end of the lease, would yield the sum of $4,041,250, for tbo use of the road for that time. Regarding the question as settled, therefore, that the road Avith proper management Avill pay into the Treasury $25,000 per month, or three hundred thousand dollars annually clear of all expenses and repairs, the inquiry naturally ari ses, what disposition shall be made of the money? Payment of the Public Debt—Common School *Sys tem. The public debt of the State amounts at pres ent to $2,630,500, payable at different times du ring the next twenty years. A large portion of this debt has been contracted from time to time on account of the State Road. This debt it Avill be remembered, is subject by legislation, already had, to be increased $900,000, on account of the State’s subscription for stock in the Atlantic and Gulf Railroad Cos. This Avould make the whole debt $3,530,500, should no part of it be redeemed before the bonds of the State for the above men tioned $900,000, shall have been issufd. Ry the terms of the contract with the bond holders, $289,500 of this debt is ijoav subject to he paid at the option of the State, though payment cannot be demanded till 1863 and 1868. The Central Dank bonds are also falling due in considerable sums annually. Good faith requires that the debts of the State be promptly met Avhon due. And sound policy dictates that such bonds as are due or not, at the option of the State, betaken up as fast as she has the means. The net earnings of the Western and Atlantic Railroad ore already pledged for the payment of a large poi-tion of this debt. I therefore recom mend the passage of an act setting apart $200,- 000 per annum of the net earnings of the road, to be applied in payment and purchase of the pub lic debt. And, in vieAV of the great and acknowl edged necessity existing for the education of the children of the State, and of the immense advan tages which would result from the establishment of a practical Common School system, I further recommend that a sum as large as the entire amount of the public debt, be set apart as a perma nent Common School Fund for Georgia, to be in creased asfastas the public debt is diminished ; and that the faith of the State be solemnly pledged that no part of this sum shall ever he applied to, or ap propriated for, any other purpose than that of education. Let the act make it the duty of the Governor each year as soon as he shall have ta ken up the $200,000 of the State’s bonds, to issue $200,000 of neAv bonds, payable at some distant period to be fixed by the Legislature, to the Sec retary of State as trustee of the Common School Fund of the State, with semi-annual interest at six per cent per annum. The bonds to be depos ited in the office of the Secretary of State. As the public debt is annually diminished the School Fund Avill be annually increased, until the whole debt is paid to the creditors of the State, and the amount paid converted into a School Fund. And as the fund is increased from year to year, the amount of interest to be used for school purposes Avill be likewise increased. Should this plan be adopted, in a feAv years the school fund of Georgia, including the present fund for that purpose, would be in round numbers s4,*- 000,000. The amount of interest accruing from this fund, to be expended in erecting school hou and paying teachers, Avould be $240,000 per annum. I am aAvare of the difficulties Avhieig have been encountered by those avlio ha\-e at tempted heretofore to deAise a practical and equal school system for the State, owing in a great de gree, it is believed, to the fact that portions of our State are very densely, AA’hile others are quite sparsely populated. But the fact of cur inability to accomplish all we may desire is no sufficient reason why Ave should neglect to do that which is in our power. Probably the principal cause of our failure in the past is attributable to a lack of funds and of competent teachers. With the gradual increase of the fund proposed, it is not doubted that the wisdom of our State would, from time to time, improA'e our present de fective system till it would be so perfected as to af ford the auA'antages of an education to all or near ly all the children of the State. Let the teachers be paid by the State, and let eA'ery free white child in the State have an equal right to attend arid re ceive instruction in the jrublic schools. Let it be a Common School, not a Poor School System.— Let the children of the richest and the poorest pa rents in the State, meet in the school-room on terms of perfect equality of right. Let there be no aristocracy there but an aristocracy of color and of conduct. In other words, let every free Avhite child in Georgia, whose conduct is good, stand upon an equality of right with any and eve ry other one in }he school-room. In this way the advantages of education might be gradually dif fused among the people; and many of the noblest intellects in Georgia, now bedimmed by poverty and not developed for want of education, might be made to shine forth in all their splendor, blessing both church and State by their noble deeds. Should $4,000,000 be insufficient to raise annu ally the sum required, the fund might be increased from the incomes of the Road, to any amount ne cessary to accomplish the object. The interest on this fund should be semi-annually distributed equally, rmong the counties, in proportion to the Avhole number of free Avhite children in each, be tween six and sixteen, or of suchpther age as the Legislature may designate, Authority should also b cleft with each couiUy to tax itso-l> • pleasure, to increase us school ffin l. f And it should be left to the IniVri , 1 School commissioners -d eath couiuv. i, the county into such school district.'. most conA-enient to its population, havir 1 gat'd to their number and condition. Education of Teachers. Assuming that provision Avill be thus ; raise all the funds necessary to build m] , ses and pay the teachers to educate all white children of the State, the next , which presents itself, and perhaps the i portant one of all; is, How shall the Star herself Avith competent teachers? rab iniust and devoted to iter interests an> h, tut ions ?—southern men, with so;; and southern sentiments? For the purpose of educating tb. .-.i-r.-p in Georgia colleges, I propose that the >• her bonds payable at such distant time - ■ gislature may designate, bearing inttivs; per cent payable semi-annually. The in be paid out of the net earning of the 8, and the bonds to be redeemed out of its r: should it ever be sold. That she Helix er of-these bonds to the State University, at as an additional endowment; $50,000 to tlx gia Military Institute, at Marietta, an<ls t > u each of the three denominational Colli - - j u State, in consideration that each of saih , leges, will bind itself to educate annually, , - young man as a Slate Student, for every $y annual interest Avhich the eudoAvmen. the State pays to the College; furnishing board, lodging, lights, washing, tuition, mb necessary expenses except clothing, which be furnished by the student himself or his ] The interest on this $400,000 of bonds a\ i $28,000 per annum. This sum Avould r m.; and instruct as above suggested one humhe forty young men annually, being one from >. county in the State, and iavo from each <; fourteen counties having the largest popul unless other ucav counties are formed. I pro; that these young men be selected from all counties in the Stale, from that class on!’ young men whose parents are unable to ede them, and that only such be selected as are ui moral character, industrious and attentive, >, desire an education, and who give promise tore usefulness. That the selection be m I. each county by a competent, committee a; by the Inferior Court, after an e.xamiim ; some public place in the county of all such y, men as desire to become beneficiaries, ;,mi v, ■ , will attend on a day to be fived by the I. r ; Court, after giving due notice. Let the cenm ! tec be sworn that they Avill be governed in if . lection by the merits of the applicant, vvi. ; prejudice or partiality; and that they Avill .and, . no one whose parents are kaoAvn to bo abh to him a collegiate education without doing ; , i. ; ; to the rest of his family. And I propose place of any such student in college be tn; ; , by another, Avhcnever the faculty of the ft-;;, ■ shall certify to the Inferior Court of hi. .ur;, . that he is neglecting his studies or failing t< at; reasonable progress, or that he has become muff - ed to immoral habits. I propose that the in this manner, gh r e to each of the p<.>r 1 men thus selected his collegiate education, mi, dition that he will enter into a pledge of hm make teaching his profession in the count} . which he is sent, for as many years as 1. g ha\ r e been maintained and educated by tff in College; the State permitting him to enjoy incomes of his labor, but requiring him to fff . as a teacher. Many of these young gentlemen avouM doubt, adopt teaching as their profession Ur; . This Avould supply the State after a few years >w competent teachers. And as these young while teaching in the various counties in tu<- Avould prepare others to teach without g i college, pure streams of learning would tin; 1 caused to 1!oav out from the colleges, and bee: fused among the masses of the people throe, the State. Then we wouid not so often hear the plaint, that the child must unlearn at one -ff what it has taken it months perhaps to loanin'.; other under an incompetent teacher. The intended to equalize as far as possible, th o with the rich, by giving to as many of them possible, at the expense of the State, an ojpm nity to educate their sons in college, a privil at present confined almost exclusively to the ri as poor men have not the means to educate the', sons hoAvever deserving or promising they ir; be. Under the plan above proposed it is not in decl to make a donation, or absolute gift t colleges, of a single dollar of the bonds State. It is intended only to deliver the ho; the colleges and to pay to them the interest -■ annually, as a compensation for them to maim ; and educate annually, one hundred and , young men of promise, who could in no other w enjoy- the advantages of a liberal education: \:i in turn are to diffuse intelligence among the body of the people, thereby supplying :':e with Georgia teachers well qualified to ; e ; ; youth of Georgia : and who would be, at ,i, time, the natural friends of her institution;, part of this plan I also propose that a. ■ Superintendent of schools for the thole. >e ted with a salary sufficient to secure the in ■ whose duty it shall be to collect valuable im ru ination upon the subject, and report aini :, the Executive, to belaid before the legisialie. :■ and to traverse the State in every direction, ■< i the schools, address the peopie, and do ail in ; power to create a lively interest on the subju.’ education. Carry out this plan and who can estinn benefits to the State ? I regard tho educate the children of the State as the grand oi jc ; primary importance, which should, if nece. : take precedence of all other questions of r : policy. For I apprehend it will be readih mitteuby every intelligent person, that the si; i -and permanence of our republican institut; hang upon the intelligence and virture of our j pie. No monarch rules here! And it is th< ! : t of our system of government that each citizen . the ballot box possesses equal rights of seven pu ty with every other one. Thanks be to our Ho; - enly Father, the popular voice cannot he? ‘ ! hushed in the silence of despotism, but the ] pu larwill dictates tho laws. May it thus ever remain! How important it is, therefore, that the mass; s ‘ the people be educated, so each may be able t ; read and understand for himself, the Constitution and history of his country, and to judge and deem for himself, what are the true principles and policy of his government. Hut how much more impor tant it is, in my opinion, that every person in t State be enabled to read for him or herself : the Holy Bible, and to .comprehend the great psi 1- ciples of Christianity, in the eternal truths of wid’ lam a firm, though humble believer. Euucj the masses and inculcate virtue and morality, I<- you lay broad and deep, in the hearts of our }■■-• >- pic, the only sure foundation of republican liberty and religious toleration: the latter of which is ; ho brightest gem in the onstitution of our Ccountry. By adopting the proposed line of policy we have it in our power, without increase ot taxation or burden to our people, to place Georgia, as far as education is concerned, in the proudest po; i tion of any State in the Union. Let her educate every son* and daughter within her limits, and she may then justly boast that she is the,empire Sr& ■-3 of not only the South, but of the whole Union.- — By this plan the public debt would be reduce;, and the school fund increased, annually, ; and the interest amounting yearly to $28,000 c the bonds delivered to the Colleges’ would be paid semi-annually, out of the net earnings of the St; t Road; and there would still be left an annual in come from that source of $72,000, to be applied to other purposes. Reduction of Taxes. The present annual expense of the Government, including the civil establishment, the interest on the public debt, support of Asylum, Academy for the blind, State Cadets in Military Institute, Jc., amount to about $446,000, without including ary of the extraordinary appropriations. The pres ent annual incomes to the Treasury from the State tax. the tax on bank stock, railroads, diA'idends on bank stock, and from other miscellaneous sources, such as copy grants, testimonials, <&e.. amount to about $416,000, exclusive of incomes from tho State Road. It follows thorefore, after allowing somes22,ooo pr. annum of special appropriations, outside of the actual expenses of the Got era men t, that the taxes might bo reduced irom tne incomes of the Road about $50,000 P er annum >esides es