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oc*leel)ln Constitutionshsl. BY JAJVTES G^IUDISTER. GOVERNORS’ MESSAGE. Executive Department, )_ Milletoeville, Ga., November 3,1555. ) Fellow Citizens of tin Senate and House of Repre sentatives : It affords mo much pleasure to be able to state that the financial condition of the country is great ly improved siuce tile adjournment of your last session. I'revions to that time, the commercial crisis, aggravated by a general suspension of spe cie payment by the banks of many of the States, including most of the banks of this State, attend ed by distrust and loss of confidence, bad depress ed the spirits of our people, and seriously affected all the great interests of our State. HANKS AND BANKING. On the 22d day of December last, both branches of the General Assembly passed, by a constitu tional majority, without Executive sanction, an act entitled “an act to provide against the forfeit ure of the several bank charters'll! this State, on account on non-specie payment for a given time, and for other purposes therein named.’ 1 act made it the duty of the Governor to withhold pro ceedings under the act of 1840, for the forfeiture of the charters of sti ll banks in this State as had violated the law, and were in a state of suspension, until the loth day of the 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-tne name of exchange, 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 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 cr 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 (or money loaned at a greater rate of inter est than seven per cent., as "well as all notes, pa pers and evidences of debt discounted or purchas ed in violation of staid act, are declared to be ut terly milt and void, and irrecoverable in law. The tenth section of the act regulates the per cent, which a bunk may receive for exchange, when its ntvn 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 net for the purposo ot protecting the people against the usurious and ex orbitant exactions of the banks. And to prevent, as far as possible, violations of the act, in the par ticulars above referred to, it is enacted by the eleventh section, that, “The affidavit of hank otli cers to their annual and semi-annual reports, shall, in all cases, state that tin- bank in which they arc officers, has not, by itself, its officers or agents, in any puriiculaf, violated the provisions of this act.” And the twelfth section makes the offence perjury, should bank officers swear falsely in making their reports. By requiring of bank officers the solemn guarauty ol 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 mv sanction from the act on account of other objectionable features in it, and on account of the doubts 1 entertnined 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 aunual and semi-an nual reports, which apply alike to all banks in the State, are both constitutional and expedient. En tertaining these views, on the Ist day of June last I issued my proclamation, calling on the banks to make their returns according lo law, and to com ply with said eleventh section of the act of 22d December, 1857. As had been passed by the legislature mainly tot the relief of the sus pended hanks, and at the earnest solicitations of their friends, I had reason, in common with all law abiding citizens of the Slate, to suppose that they would render cheerful obedience to "all its re -quiremenls. It is with much regret, however, that 1 have to state to the legislature, that by far the greater number of the hanks whose suspension had been thus legalised, and whose charters had been so recently relieved from liability to forfeit ure, in open violation of tile statute passed for their relief, as well as all the banks in the State which had not suspended, cither neglected or opentv refused to obey the Jaw, and make their re turns’as directed by the positive mandate of the statute; thereby placing themselves in a position of defiance to the constitutional authorities of the State. In this state of things I issued my proclamation, as required by law, publishing the names of such ■ delinquent banks, and notilying 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 ts evident, therefore, that the penalty of excluding their bills from the Treasury, which is the only penalty now prescribed by law for a fail ure to make their returns, is not sufficient to com pel obedience to the requirements of the statutes. Doubtless some of the banks have made more by usury, and by disregarding in other respects the act of 22d of December last, than they have lost by suffering the present penalty for not making re turns in accordance with existing laws. For the purpose of compelling these corpora tions to yield obedience to the law in future, I re spectfully recommend that a penalty for disobe dience 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 collected in gold and silver, for the entire time during 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 corpor ations should be permitted at their pleasure to set the law at defiance, while individuals are compel led to suffer rigorous penalties for its violation. The mandates of the law should be obeyed as promptly 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 of December, 1857, been passed, than the banks, forgetful of tbeir promises to expand their circulation, to discount freely and relieve the country, lefustd to discount notes, however good, when offered to them in a legitimate course of banking business, or to ex tend accomodations to any except perhaps a tavor ed few, sueh as cotton buyers and other specula tors. Merchants and others compelled to have northern exchange, were generally unablte to ob tain it for less than three per cent. The price of cotton declined, and monetary distress became general throughout the State. The hanks having thus abused the generous con fidence reposed in them by the legislature, contin ued to enjoy the benefits of the suspension long after the banks of the great cities of the North and West had resumed specie payment, and until the just indignation of an injured people, expressed through the public press, by public meetings and otherwise, became so prevalent that they felt com pelled by tear of future consequences, to retrace their steps and curtail the speculation they oiner wise would have made out of the suspension. They therefore prepared to resume on the Ist day of May last; thus admiting, by their resumption six months in advance of the time fixed by the stat ute, that no such necessity as they represented to the legislature ever did exist for the passage o. the act. A gentleman of great ability and worth, who is at the head of one of the most important and influential banks in the State, in his report in May last, while apologising for the suspension, and re fering to the fact that the legislature had given time till the 15th of November, says: “Our banks, impatient under the supposed odium of suspen sion, resolved to resume on the Ist of the present month,” (May.) It is a fair inference, therefore, that the banks would have continued the suspen sion tUI the time fixed by the act for them to re sume, but for the pressure of public opinion, and their impatience “ under the supposed odium ol suspension.” Public opinion having thus compil ed the bank 3 to resume before the lime fixed by the statute, and the crisis having passed, we, as rational men, should learn wisdom by experience. t.r, i try to provide asfar aspossible agates' abv - 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 ungarded grant of corporate powers and privileges to moneyed monopolies. And it is believed that a future ex tension of this policy would soon enable these monopolies lo control the government of Georgia and make the people the subjects of their power. It is already claimed by some, that they now have the power, by combinations and the free use of large suras of money, to control the political con ventions and elections of our State, and in this way to crush those who may have the indepen dence to stand by the rights of the people in op position 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 im posed by the corporate powers of the State. Let it not be forgotten, however, by those who have watched with anxiety the growing power of cor porate influence, that the price of Republican lib erty is perpetual vigilance. The monetary and commercial affairs of the country must necessarily remain subject to pan ics, under heavy pressures, at certain, if not fre quent intervals,' as long as our present banking system is continued with its enormous powers and privileges, which hive been enlarged and extend ed by legislative enactment, chartering new hanks from year to year. The people should take this subject into serious consideration, and pronounce upon it a calm and deliberate judgment. Evfcry intelligent person must admit that it is impos sible 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 lor pay. metit at any one time, and the specie be demand ed, it can ilien redeem but one third of them. In that case, if the bank has sufficient assets, or pro perty, tiie other two-thirds may possibly not be an ultimate loss, but payment must be delayed un til tiie money can be realised by a disposition of those assets and properly, which mav not be till j the end of a lengthy and uncertain litigation. It is clear, therelore, that our present paper currency is not a currency convertible, at all times, into gold and silver, upon presentation ; and that only one-third of it, should payment be demanded on all at or.e time, can, in the nature of things, be so convertible so .long as the banks issue three dol lars 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 convertible iuto gold and silver. It is true, our people, by a sort of common consent, re ceive the bills ot the banks and use them as mo ney, though in reality they rest upon no solid specie basis. But sad experience has taiucbt us that sueh a circulating medium subjects the coun try to panic at tbe first breath of distrust or sus picion, which may be produced by tiie failure of a single hunk having a large circulation and exten sive connections with other banks, and may widen and extend to the prostration ot 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 m place of money itself. The people take from the banks their bills as money. Tiie 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 prerogative of exercising banking privileges, and of issuing their own notes or hills to he circulated as money, not resting 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 privileges upon like terms is denied to all indi vidual citizens of tbe State by stringent penal enactments. Tbe privilege of using their own notes as mo ney, gives to the favored few who enjoy it, im mense advantages over their fellow-citizens, and may often enable the managers of these corpora tions to amass great wealth by their high salaries and large profits. It may, however, hi- said that many of tbe stockholders are widows and orphans; that the stock is in the market for all, and that the dividends are not greater than the profits realised from other investments. This may be admitted. Indeed, it seems in practice to be generally true, that corporate privileges do not result so much to the benefit of the mass of stockholders as io the benefit of the few who manage the eorpurati n. 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 ulso take into the account the banking houses, real estate and other properly purchased out of the profits of the bank and held by the cor poration. Besides, we should consider a reserved fund of two, three or four hundred thousand dol lars, made lip of accumulated profits, and often kept back by our larger banks and not distributed among thoestockholders, together with the high salaries of all the officers of the hank, 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, Ac., and alt amounts lost by de faulting agents, which, while they cannot be set down as profits of the corporation, since neither its officers proper nor its stockholders are benefited thereby, are still sums of money which, under the workings of the system, are drawn by the corpo ration trom 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 liabilities on account of the Central Bank, $240,000 of which 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 people 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 control tiie corporation may have great advantages in being able, if they choose, to obtain such accommoda tions as they may desire, by the use of its funds, when a favorable opportunity lor speculation oc curs. The dividends paid . Stockholders ate, therefore, no proper criterion by. which to judge of the advantages of •!, ■ coi (.oration to those who hold its offices a:--'. and mat •»« its .capital and its opera:: ( the sim i-> : i., :i people on ace: kings ; it... s.vsiem. Thus far I Is ■ ...> ■,’. the supposition th . .. . esc edthree doners for ever; n bar. d in the bunks to nn . supposi tion is more (.■.•. • , . o inks than facts will jus::! ~ - . iS only requires that to J . . : C J three dollars for eve: ■ 1 . ■ . to meet those liabilities. jnd the error of our present ! • banks, suppose tbe : , . of 'he bank be limiT. , , .0, which is to be p_ bv the stock holders. T ,~j s that tlje , ja . bititles of t . time exceed three Umestt 'a! st ick actually paid m. lb - t b e $500,000, in gold and surer, t of the bank may then, without at. . ■ letter of the charter, in.ur 11 !i n bank to any amount that dofcj \~i-i 0 000; and that too without air .. • heir part tole.*p in their vaults the *' * p ,:,l in. or a like sum If they -h i: their s ,eoieand i invest It ir i • t •», leaving! but $!• ’ ■.,, ~.|j I con'rac d*', ’ : a . half, and nr . ..of! their char: . -of; capital ■'• .u.tblir j T_k. • _ - -■ h m A.TJGYJST.A, WEDNESDAY, NOVEMBER 10, 1858. to have been well understood by our people. They have generally believed that our banks, by tbe letter of their charters, were required to have on hand at all'timrs an amount of specie one-third as large as tiie entire amount of their liabilities. The banks have understood the matter very differently, and have not only claimed, but exercised the right when thev regarded it their- interest, to extend their liabilities far beyond three dollars for every one of specie actually on hand to meet those liabil ities. By examination of their returns made to this Department in October, 1857, it will be seen that at the lime of the late suspension ofourbanks in Augusta and Hdvanuah, the liabilities of one of them for bills in circulation and individual de posits, exceeded thirUen dollars for every one dol lar of both specie and bills of other banks which it then had on build. Another had one dollar in specie in its vaults for every fifteen dollars of its liabilities for bills in circulation and deposits. An other bad uot <))#ffi)!!ar in specie for every seven of liability for bills iu circulation and deposits.; and another bad only one dollar in specie for every eleven dollars of its liabilities of the character mentioned above. It ts true these banks had other assets, but those ussels were not money. The ques tion naturally suggests itself, how can such a cur rency be convertible into gold and silver—the money of the Constitution—on demand or presen-' tation? How can a bank with fifteen dollars ot cash liabilities for every one dollar in specie, el even of five dollars for one, pay its liabilities promptly on demand? It is impossidle. And how can its bills be justly considered safe as a cir culating medium, or as money, if it cannot redeem them promptly on demand ? In eousidetation 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 tins be not possible, we should abandon it entirely. lam 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 refor j mation so radical, if attempted, must be the work of years. If the legislature would continually re fuse to charter any new hank, or to enlarge the capital stock of, or re-charter any bank now in ex istence, tlm system would gradually work itself out by efllux of time; and we might, without any sudden shock, return safely to the currency of the Constitution, plant out selves upon-a firm specie basis, and rid ourselves of a system against which the great and good ineu who conducted the revo lution and formed our Constitution intended to guard their posterity, alien they declared in the Constitution tiutl nothing but gold and silver coin should be made a legal tender. In two ol the Suites 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 tiie late commercial pressure was comparatively hut 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 then’ number and thereby increasing their power in the State, I would re spectfully urge the imp rtance of guarding all char ters with much greater stringency in the future. Let the charter of each provide that the entire lia bilities of the bank shall, at no time, exceed three dollars for every one of specie actually in its vaults and bona fide the property of the hank, on pain of immediate forfeiture. Let the simple fact of sus pension of specie payment render the charter ab solutely null and void. This would deter them from engaging in such wild speculations and over issues as compel them to suspend iu case of pres sure. Let provision also be made that all execu tions issued against the corporation may he levied upon the property of any stockholder until the ere ditor be satisfied, leaving the stockholder lo his le gal remedies against the rest of tiie stockholders to enforcecontribut ion among themselves. Let the bills of the banks in the hands of the people at the time of suspension, bear interest from that time till paid. And let the legislature retain the right, by express reservation in tiie charter, to alter, modify or re peal it at pleasure. In my opinion it would be best for the legislature to refuse to granta charter to any corporation tor any purpose whatever with out retaining a similar power, should its exercise be required by the interests of the Stute or the public good. If-the corporation is unwilling to trust the people with this repealing power, liow much more shoiihl the people be unwilling to trust the corporation without it. Prohibition of Small Pills. —Several of tbe States have already passed laws prohibiting tiie emission by their buuks of small billß. I once entertained doubts whether our legislature could do this with out a violation of the chartered privileges oi the banksi but on mote mature reflection and careful examination, those doubts are entirely removed from my mind. I therefore recommend the pas sage of a law prohibiting the emission of small hills by the banks of this State, and forbidding, under heavy penalties, the circulation within tills State of bill* of a like denomination issued by banks of oilier States. Such an act might pro hibit 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 Btated times ns might be thought best, so as not to embarrass the business transac tions of tbe country. The effect 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 circu lation in their stead. This would cause gold and silver to take the place of bank bills in all tbe smaller business transactions. The laborer would then receive the price of his labor in gold and sil ver, the farmer 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. —l also beg leave to call the attention of the General Assembly to tbe pro priety of establishing by law a Bystem for "onr State similar to tiie sub-treasury system of the United States, the wisdom of which has been fully demonstrated by the beneficial results of its prac tical Operation. I earnestly recommend the adop tion of sueh a system. Let all payments into the treasury, after a reasonable time to be fixed by the legislature, be made in gold and stiver, 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 liabili ties, in gold and silver. Os course the system yhould go into operation gradually. This, in con nection with the prohibition of the circulation ol small bills, would keep out of the banks and in | circulation among the people a large amount of j coin, placing the currency upon a much more solid ! specie basi3, making tbe people more independent I of banks, and enabling them to withstand the shock with much less injury in case of a commercial cri sis and bank suspension. It is believed that no serious inconvenience could result to the tax payer from such a law, as the gold and silver paid into tbe 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 tbe transporta tion of specie from the treasury to the creditor, provision might be made authorising certificates j of deposit to be issued, which might be paid to the creditor at his request in piaec of the coin. These certificates of deposit might he of such de nomination as the legislature may prescribe, hand somely engraved upon steel plates, which plates should be deposited in the treasury for safe keep ing. Each certificate might be signed by the Treasurer and countersigned by tbe Secretary of j State, with the impression of tne great seal of the ; State stamped upon it, and a register of the issue ( of each kept in the treasury to preventcountetfeit. j These certificates might be made payable to the person to whom they first issued or to hi aret. [ Thev would supply the place of bank bills so fur j as the conveniences of a paper currency are ecu- j cerned, while thev would be subject to none of the J fluctuations of value.and the uncertain.us of baok bills - They would be taken at the option only of . the creditor in place of gold and silver. Too gold ; and silver, dollar for dollar, would, v. Y u tl.-y were in circulation, remain in -7 ‘.l*e , jreasury to redeem them A. »'it I » it. ; These certificates, fhos pr. .......-i t-p’-i coin :u j the treasury, dollar for dollar, would be receivable , in payment ot 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 sil ver Upim presentation at the treasury. " Each dollar , of paper would have for its basis a dollar of specie 1 in the treasury, and ns the faith of the S'ato would be pledged for their redemption, it would be im possible for any citizen to sustain loss upon them. They would be a currency at all times and uuder all "circumstances of uniform par value. This would render the government of the State entirely independent of all banks and bank agencies, anil would iu a very great degree destroy the power of the banks over the people, while it would give the people gold aud silver change in all their small transactions, and a paper currency perfectly secure in many of their larger ones. The suggestions made by tiie 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 (o that of the Uuited States, and the prohibition of the circulation of hunk hills un der the denomination of twenty dollars, are, in my judgement, founded :;i wisdom, and commend themselves to the sen s consideration of tiie Legislature. The Star- of Ohio lias already shown her appreciation of '.1., wisdom of thesesugges lions, by transferring mnenof their substance to her statute book, allowing sufficient time for the gradual inauguration of the system inlo practical operation. Western if- Atlantic Railroad. For a statement of the present condition of the Western & Atlantic railroad, tr.s operations and income for the fiscal year ending 3oth September last, I beg leave to refer you t i the report of Dr. John W. Lewis, its able and efficient Suprintendent, who has shown himself to be a most vigilant, active, and valuable public servant. In passing this well merited com pliment upon tiie faithful Superintendent, I would do injustice to bis associate officers, ami the other agents and employees of the road, were 1 to fail to express my entire confidence in their integrity and business qualifications, and to commend tiie zeal and energy with which they have exerted themselves for the success of tiie road and tiie ad vancement of the best interests of Die State. For their efficiency, fidelity and integrity they have my ■sincere thunks, and arc, iu my opinion, entitled to their tiianks ot tiie whole people of Georgia. Owing to the commercial pressure, and (lie con sequent stagnation of trndeand business, Hie gros incomes of the road dating the present year, from frieghts and travel, have been less than tlioy were for the previous year, which was one of unusual prosperity. The low price of corn, wheat and other kinds of grain during die present year, has, in a great degree, prevented their shipment. Not only were prices of wheat much lower than they were the year previous, hut the quantity made ill all that section of country which supplies tiie road with freight, was much less. Merchants limited their purchasers of goods to the limited demand for them in the country ; hence, the diminution of incomes to the road on account of freights on merchandise. 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 lias required a great deal of costly repaiwc A considerable portion of the track between those points has been taken up and thorougly repaired, and small stones pounded into tiie 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 tbe end, us the track in these soft pluces wiil remain firm when once budded in stone. The entire track is believed toH>e in better condition than it lias been for several years, (a force of about three hundred lianas having been employed in its repair most .( the summer,) and all tiie rolling stock is in good order. Repairs have also been lately made at Alatoona, I’etit’s Creek and the Tunnel. Since your last meeting one thousand tons of new T iron have been purchased, which has all been paidfrr since the Ist day of January last. This will iuy about eleven miles of the track with new, heavy bar. Part of this iron bus already been luid down upon the track, and the remainder, now being received, will soon be laid down. Other new iron will be purchased as hist us it is needed. 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 trade at diffe rent pluces should be laid with new iron erery year; otherwise (he iron on a large portiou oflhe track might wear out at the same time, requir ing a very heavy outlay to replace it. I hold that no administration, for the purposo of pay ing money into the Treasury or otherwise, has a right to let the Road run down, lie who does it deserves to be condemned; and I am willing that my administration, so fur as tiie management of the road is concerned, shall he judged by this standard. According lo the report of the Senate Com mittee, tbe present Suprintendent, when be took the charge of the road, Ist January lafct, wus chargeable with assets amounting to about $57, 321 15, due from connecting Roads and solvent agents, with a balance in the Treasury of $15,907 45. And he.paid, according to tbe report, from Ist January, to Ist July, tbe sum of $157,773 23 to creditors of tbe road, on account of indebtedness contracted prior to Ist January, 1858, and had in the Treasury of the road Ist July, 1859, a balance of $35,010 96. It will be seen, therefore, that the amount in the treasury was much smaller first January than it wus first July; and that the amount of debts contracted by former admin istrations of the road, and paid by the pre sent Superintendent, from first January to first July, 2858, was $100,449 08 larger than the amount of solvent assets turned over to him. The present Superintendent would seem therefore to be entitled to this sum, paid out of his net earniDgs as a cash credit. In this sum is in cluded the price of four hundred tons of the new iron above mentioned, which was ordered by the former Superintendent prior to first January lust, and has been paid for and laid down by the pre sent Superintendent since that time; who has also, through the Treasurer of the road, paid into t lie State Treasury, c mmencing with the month of March last, s2oo 600. Os this sum $175,000 had been paid in at the date of his report of goth Sep tember, and $25,000 since that time for the month of October. The current expenses of the road have been paid. No new debts are permited 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 of. construction, under the superinten dence of the Chief Engineer of the road, with workmen hired by the general Superintendent. The building is one hundred and oue feet wide and three hundred and three feet long, and is a very solid and well built structure. It is built of stone, to the spring of thearches, which are turned with brick. It is expected to be completed and ready for use in a few weeks. All expenses of this structure hare been paid monthly. It is intended that tbe depot be used by all the roads connecting at that place. As some of these roads were Dot in a condition to incur the expense, at the time the work was commenced, of contributing to its erec tion, 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 the connecting muds for their proportion of the expense. The Nash- i ville and Chattanooga road takes one-fourtb inter- i est in the depot, and pays siu,ooo. The East Ten- i nessee and Georgia Railroad Company agrees to I take another fourth, and to pay a like sum, at two i and three years from the time they are ready to i use it, with semi-aDnual interest at the rate of seven < per cent, per annum ; and it is believed that the Memphis and Charleston road will also take a i fourth interest. Dr. Lewis took charge of the road the fir- • -1 , of January last, and was under the oece--> applying the net earnings of the morithH ■ > ary and February in payment of debts au road, which existed prior to that lime, a - -ary repairs on the road, including p - iron previously ordered. It will be seen pay merits made into the State trear-: first of March last to the present tiu ; aged twenty-five thousand dollars p-,. - j' is believed in future that the nicess-c . r<; - be made, all current expensesp. omr' . ■ '' department of the road kept iu first late and that an average of $25,000 a month can In paid into the State Treasury, from year to year. Ttiis may be regarded by some as an over esti mate of tbe legitimate net earnings to be realised in future from the roud. As an evidence, however, j n ‘ my confidence in its correctness, I havo uo hesi j tatuiu iu saying that l would risk my personal for tune on the result. Were I satisfied that it w ere the desire of the legislature and people of Georgia, I would bind myself, as an individual, to take the road tor a term of ten years, commencing first of January next; and I would give bond in any reasonable sum winch might be required, with ample security, to return it in as good order as it was first January last. I would lay down ten miles ot new T iron oil the track every year, the old iron taken up, or the price of it, being mine. I would take the benefits and tiie burthens of all contracts made by the authorities of the road since the first of January last, receiving all sums owing to the road, and paying all debts owing by ttie 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 charged for freights by the other roads in Georgia; and 1 would pay into the Treasury of the State $25,000 per month, fur tho use of the road, its equipments and appurtenances, to he paid monthly in cash, or in bonds of tho State, or in the bonds which now constitute the funded debt of the road ; for tho pavment of which, the faith of the State lias been pledged for years. And every time a payment should be delayed twenty-five days after it was due, I would forfeit and pay to tiie State SIO,OOO for the delay. This would be $309,000 pel annum principal, besides interest. And a term of ton years at these rates, counting simple interest at seven per cent, per annum, on eacli monthly payment, from the time it wus paid into tho Trea sury till the end ot the lease, would yield the sum of $4,041,250, for tho use of the road for that time. Regarding the question us settled, therefore, that the road, with proper management, will pay into the treasury $25,000 per mouth, or SBOO,OOO an nually, clear of all expenses and repairs, tiie in quiry naturally arises, what disposition shall he inado of tiie money V Payment of the Public Debt—Common School System. —The’public debt of tiie State amounts at present to $2,630,500, payable ut different time during the next twenty years. A large portion of this debt has been contracted from tune to time r p account of the State road. This debt, it will be remembered, is subject by legislation, already had, to be increased $900,OOt), on account of the State’s subscription for stock in the Atlantic and Gulf RItiII nr.d'Gompany. This would make tint whole d t : ’.-1,500, sliculd no part of it he redeemed hr. ire ihe bonds of the State for the above men tioned $900,000 shall have been issued. By tiie tert is of the contract with tho bond holders, $239,500 of this debt is now subject to be paid, at tiie option of tiie Stute, though payment cannot t be deinunded till 1803 and 1808. Tbe Central Bank bonds are also fulling due, inconsiderable - sums, annually. Good faith requires that the debts of the State lie promptly met when due. And sound policy dictates that such bonds as are due or not, at tho option of the State, be taken up us fast as she has the means. The net earniugs of tho Western & Atlantic Rail road are already pledged for the payment of n large portion of this debt. I therefore recommend the passage of an act sitting apart $200,000 per an num ot the net earnings of the road, to be applied in payment nn4 purchase of the public debt. And, in view of the great and acknowledged necessity oxisting for the education of the children of the State, and of the immense advantages which would result from the establishment of a practical com mon school system, I further recommend that a sum as large as the entire amount of the public debt, be set apart as a permanent common school fund for Georgia, to be increased as fast as the public debt is diminished ; and that the faith of tbe Butte be solemnly pledged that no part of thia sum shall ever be applied to, or appropriated for, uny other purpose than that of education. Let the act make it the duty of the Governor, each year, as soon as he shall have taken up the $200,- 000 of the State’s bonds, to issue $200,000 of new bonds, payable at somo distant period, to he fixed by tbe legislature, to tbe Secretary of State, us trustee ot the common school fund of the State, with semi-annual interest at six per cent, per an num. Tho bonds to be deposited iu the office of the Secretary of State. As the public debt is tints diminished, the school fund will be annually in creased, until the whole debt is paid to tbe credit ors of the Stale, and the amount paid converted into a school fond. And as the fund is increased from veer to year, the amount of interest to be used for school purposes will be likewise increased. Should this plun he adopted, in a few years the school fund of Georgia, including the present fund for that purpose, would be, in round numbers, $4,000,000. The amount of interest accruing from this fond to be expended in erecting school houses and paying teachers, would be $240,000 per an- - mini, iam aware of the difficulties which have been encountered by those who have attempted heretofore to devise a practical snd equal school system for tbe State, owing in a great degree, it is believed, to the fact that portions of our Slate are very densely, while others are very sparsely popu lated. But the fact of onr inability to accomplish u-1 we may desire is no sufficient rcuson why we should neglect to do that which is in our power. Frobably, tbe principal cause of our failure in the past is attributable to a lack of funds and of com petent teachers. With tbe gradual increase of the fund proposed, it is not doubted that tbe wisdom of our State would, from time to time, improve onr present de fective system, till it would be so perfected as to afford the advantages of an education to ail, or nearly all, the children of tbe State. Let the teachers be paid by the State, and let every free white child in the State have a-n equal right to at tend end receive instruction in the public schools Ixtt it he a common school, not a poor school, sys tem. Let the children of the richest and the poor est parents in the State meet in tbe 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 white child in Georgia, whose conduct is good, stand upon un equality of right with any and every ' one in the school room. In this way, the advan tages of education might be gradually diffused among the people; and many of tiie noblest intel lects in Georgia, now bedimmed by poverty and not developed for want of education, might be made to shine forth in all their splendor, biassing both church and State by their noble deeds. Should four millions dollars be insufficient to raise annually the sum required, tbe fund might be increased from tbe incomes of the Road, to any amount necessary to accomplish the object. Tbe interest on this fund should be semi-annually di stributed equally, among the counties, in proper tion to the whole number of free white children in each, between six and sixteen, 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 present. And it should be left to the Inferior Court, or school commissioners of the county to lay off'the county into such scliooqDistricts.as will be most convenient to its population, having due regard to tbeir number and condition. JCducation of Teachers. Assuming that provision wiil be thus made to raise ail tbe funds necessary to build school houses and pay the teachers to educate all the free white children of tbeHtate, the next qnestion which presents itself, and perhaps the most important one of all, is, How shall the Htite supply herself with competent teachers’, raised in her midst and devoted to her interests' and her institutions’—southern men, with south ern hearts and southern sentiments’ For the purpose of educating Georgia teachers in Georgia colleges, I propose that the State issue tier bonds payable at such distant times as tbe !"gt-k:ur» may designate, bearing interest at sev - per cent, payable semi-annually. The interest 1 paid out of the net earnings of tbeHtate • - d . and the boDds to be redeemed oot of its .cods, should it ever be sold. That she deliver •' v 'to of these bonds to tbe State University, at . i-o*,asan additional endowment; $50,W0 to • Georgia Military Institute, at Marietta, and , -j to each of the three denominational col -1 jf in this Slate, in consideration that each of l five colleges, will bind itself tocducate unnu ■..lv, oDe young man as a State student, for every $2 tfj of annual interest which tbe endowment YOL. 37-!ISfO. 46. given fcv the State pays to the college; furnishing him with board, lodging, lights, washing, tuition, and all necessary expenses except clothing, which might be furnished by the student himself or his parents. The interest on this $400,000 of bonds would be $23,000 per annum. This sum would maintain and instruct as above suggested one hundred and forty young men annually, being one from each county in the State, and two from each of the fourteen counties having the largest popu lation, unless other new counties are firmed. I propose lliut these young men be selected from all the counties lu the State, from that class only of young men whose parents arc unable to educate them, and that only such be selected ns are of good moral character, industrious and attentive, who desire an education, and who give promise of future usetulneas. That the selection be made in each county by a competent committee appointed by the luferior Court, aftcran examination at some public.place m the county of all such young men as desire to become beneiiciaries, and who will at tend on a day to be tixed by the Inferior Court, alter giving duo notice. Let the committee be sworn that they will bo governed in the selection by the merits of the applicant, without prejudice or partiality; and that they will select no one whoso parents are known to be able to give him a collegiate education without doing injustice to the rest of bis family. And I propose that the place of any such student in college be supplied by an other, whenever the faculty of the college shall certify to the Inferior Court of his county, that he 1 is neglecting his studies or failing to make rea sonable progress, or that he Ims become addicted to immoral lmbits. I propose that the State, in this manner, give to each of the poor young men thus selecicd Jits collegiate education, on condi tion that he will enter into a pledge of honor, to make teaching bis profession in Hie county from which lie is sent, for as many years as he shall have been maintained and educated by the State in collpge ; the State permiting him H> enjoy tho incomes of his labor, but requiring him to labor as a teacher. Many of these young gentlemen would no doubt, adopt teaching as their profession for life. This would supply the State after a few years with com petent teachers. And as these young men while teaching in the various counties in the State would prepare others to teach without going to college, pure streams of learning would thus be caused to II iw out from the colleges, and bo diffused among the masses of tho people throughout the State." TheiV we would not so often hear tho com plaint, Hint the child must unlearn at one school what it has taken it months perhups tolearn at anoth er under un incompetent teacher. Tilts planiß in tended to equalise as fur as possible, the poorwith the rich, by giving to os many of them as possible, at the expense ol the State, nri opportunity to edu cate their sons in college, a privilege at present confined almost exclusively to the rich, us poor men have not means to educate their sons liowev- tfr dstarring or promising they may be. Übuer the plan above proposed it is not intend ed to make n donation, or absolute gift to the col leges, of a single dollar of the bonds of the State. It is intended only to delivor the bonds to the col leges and to puy to them the Interest semi-annual ly, as a compensation for them to maintain and educate annually, one hundred and forty young men of promise, who could in no other way enjoy the advantages of a liberal education; wbo in turn are to diffuse intelligence among the great body of the people, thereby supplying the State with Georgia teachers well qaahned to teach the youth of Georgia; and who would be, at the same time, the natural friends of her institutions. As a part of this plan, I also propose that a general superintendent of schools lor the Slate be ap pointed, with a salary sntlicient to secure the best talent, whose duty it shall be to collect valuable information upon the subject, and roport utfnually to the Executive, to he laid before the legislature. And to traverse the State iu every diroetton, visit tho schools, address the people, and do all in bis power to create a lively interest on the subject of education. Carry out (his plan and who can estimate its benefits to flic State ? I regard the education of tho children of the State as the grand object of primary importance, which should, if necessary, take precedence of ull other questions of Statu po policy; for lunprehend it will be readily admitted by every 1 intelligent person, that the stability ana permanence of our republican institutions hang upon the intelligence and virtue of our people. No monarch rules here! And it is the pride of our system of government that each citizen at the ballot box possesses equal rights of sovereignty' with every other one. Thanks be to our Ueavenly father, t lie popular voice cannot here be hushed in the silence of despotism, but the popular will dictates the laws. May it thus ever remain! How important it is, therefore, that the masses of the people be educated, so each may he able to rend and understand for himself the Constitntinn and hlstory of his country, and to judge and decide for himself wliat aro the true principles and poli cy of Ills government. But how much more im portant it is, in iny opinion, that every person in the Htuto he enabled to read for him or herself the Holy Bible, and to comprehend the great princi ples of Christianity, in the eternal truths of which, I am a firm, though humble believer. Kdncate the masses und inculcate virtue and morality, and you lay broad and deep, in the hearts of our peo ple, the only sure foundations of republican liber ty und religious toleration ; the latter of winch is the brightest gem in the Constitution of our coun ty. By adopting the proposed line of policy, we have it in our power, without increase of taxation or burden to our people, to place Georgia, so far as education is concerned, in the proudest i position of any State in the Union. J,et her edu • cate every son and daughter within her Units, • and she may then justly boast tbat she is the em • pire State of not only the South, but of the whole Union. By this plan the public debt would i be reduced, and the school fund increased, an nually, $200,000; and the interest amounting year ly to $20,000 on the bonds delivered to tho col leges, would be paid semi annually, out of the net earnings of tlio State road; and there would still be left an annual income from tbat source of $72,000 to be applied to other purposes. ' Reduction of lomi.— The present annual expenses of the Government, including the civil estab lishment, the interests on the public debt, sup port of Asylums, Academy for the blind, State cadets in Military Institute, Ac., amount to übout $446,000, without including any of the extraor dinary appropriations. The present annual in comes to the Treasury from the State lax, the fax on bank slock, railroads, dividends on bank slock, aud from other miscellaneous sources, such as copy grants, testimonials, Ac., amount to about $446,000, exclusive of incomes from the State road. It follows, therefore, after allowing some $22,000 pr. annum of special appropriations, out. side-of the actual expenses of the Government, that the taxes might be reduced from tu incomes of the road about $50,000 per annum besides es tablishing and providing for the successful oper- ation of the proposed school system. Should the legislature, however after providiug for the re duction of the public debt, the support of the school system, and the education of teachers, make any considerable appropriations, other than those which may be absolutely necessary to support the Government, no material reduction of the tuxes could be made. In the event the legislature should disapprove of the proposition to applv the net earnings of the road to the payment of the public debt and to the education of the children of the State I re spectfully recommend that $150,000 per annum in . .stead of about fifty thousand as above proposed be applied in reduction of the taxes of the peoi h.' and that the surplus be used for such purpose! of internal improvement as will tend most to the de velopment of the resources of the State. I um aware there are those who object to any reduction of taxes, believing it neceaJkry in order to attach the people to the government to raise large stuns of money from th m by taxation, to be appropria ted u some way by the legislature. I taft u. different view of this subject, and believe that all unnecessary, wasteful or extravagant appropria tions should be avoided; and that no more taxes should be raised than the necessities pf the State require, under an economical administration of the government. I cannot believe that the people’s love for the government would be increased by high tajatlott. When the people were paying increased tare ; build the Western & Atlantic railroad, they were