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GOVEKXOIi’S \1 E S S A G E.
KXBCVTIVE DEPARTMENT,
Mill l®asVu.T.. Ga. i
November 3d, 1858.,
f'Moec-Citizen* es tin Senate
and Huuee ot Jtepreeentutaee
It affords me much pleasure to be able to
state that the thmitcia) condition of the coun
try i* greatly improved since the adjournment
of your last session. Previously to that time,
the commercial crisis, aggravated by a general
suspension of specie payment by the banks of
nuiiiy of the States, im.tiding most ot the.
bank's ot this State, atteiide I by distrust and
hiss ot confidence. had depressed tlie spirit ot
our people, ami seriously affected all the great
Interests of our State.
BASKS ASH HASKISG.
On thc22ddi„v ot December last, both branch- j
es of the General Assembly passed, by aeon ,
stitutional majority. without Executive sam
tian. an net entitled “ fin act to provide against
the forfeiture of the several hank charters in
this State, on account ot uoH-rpccie pay ment >
tor a given time, ami for other purposes there
ia named. ’ This act made it tilt duty of the Gov
rrimr to withhold proceeding* mid' r the net ot
18+0. for the forfeiture of the charters of such
banks in this State us had violated the law, and '
were in a stat j of suspension, until the 15th |
day of this present month, or till the hap
pening of certain contingencies mentioned in .
the act. I
In view, doubtless, of the great imposition
practiced upon the people by the banks, in i
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 mi l ninth sections ot 1
said act; by which it is mule illegal for any I
bunk or bank agency, by* itself, its officer* or
agents, directly " r indirectly, to loan money at
* greater rate of intasreat 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.— I
And all notes, bills, drafts and contracts ofcv- i
irv sort whatever, taken for money loaned at
a greater rate of interest llinii seven per ertit.
as well as all notes, papers and evidence, of
■debt Oiseoimted or purchased in violation ot
said act, afe declared to he 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 bill arc tendered ar its
counter in payment therefor, by a citizen of
this State.
The sections containing these provisions
were doubtless inserted m the act for the pur
pose of protecting th ■ people again-t the usu
rious ami exorbitant exactions of tbe banks.—
And to prevent, as far as possible. violations
of the net. in particulars above referred to. it
isenaeted by* the eleventh section, that, "I he
affidavit of bank officer.* to Hair annual and
semi annual reports, shall, in all crises, state
that the bank of which they tire officers, has j
not, by itself, its officers or agents, in any par- ;
♦iculnr, violated the provi-ion* of this act. -- i
And the twelfth section makes the offence per- 1
jury, should hank officers swear falsely in mnk- |
ing their reports. By requiring bank officers
♦he solemn guaranty of .an oath, under heavy 1
penal sanctions, that the law has not lieen xi- ,
olateil by them, the Legislature no doubt be- ■
lievod they had protected the people against ‘
♦ncli illegal practices in f itnre.
Although 1 withheld my sanction from the
get on account of other objectionable teatures
in it, and on account of the doubts I enter
tainevi as to the constitnflomdity of portions of
it, I have no doubt but that Midi portions of
the act as prohibit the taking of usury by the
banks, and regulate the manner ot making
♦heir annua) and semi-annual reports, w hich
apply alike to alfbank- in the State, ar. both
constitutional anti expedient. Entertaining these
vjews. on the Ist day of June hist I issued my
proclamation, calling on tin- bank* to make
tlmir return according to law, and to comply
with said eleventh section ot tin- act id 22d
by the legislature mainly for the relief of the
suspended banks, and at the carne-t solicita
tion of their friend*. 1 had reason in common
with nil law abiding citizens of the State, to
suppose that tiny would render . heerfirl obe
dience to till its requirements. It is w ith much
regret, however, that I have to state to the
Legislature, that by far the greatest.number of
the luniks whose suspension had been so re
eentlv relieved from liability to forfeiture, in
sipen violation of the statute passed for their
relief, as well ns al] the banks in the Stain
wliicli had no' suspended, either neglected or
openly refused to obey the law. and make their
returns as directed by the positive mandate ot
the statute: thereby placing themselves in a
position of defiance to the constitutional au
thorities of the State.
In this state of things I issued my proclama
tion as required by law. publishing the names
of snch delinquent bank*, mi l notifying the
Treasurer of this State that their bill* w ould
not be received in payment of taxes, or of any
debt due the State or the Central bank, until
(they should comply with the law s mid make
their returns as directed by the statutes ; and
have hitherto neglected to do. It is evi
dent, therefore, that the penalty of excluding
their bills from the Treasury, w liieh is the on
ly penalty now prescribed by law tor a failure
to make their returns, is not sufficient to com
pel them to obedience to the requirements of
the statutes. Doubtless some of the banks have
made more by taking usury, ami by disregard
ing in other res|K’Cts the act of 22d December
last, than they have lost by suffering the pres
ent penalty tor not making returns in accord
ance with existing laws.
For the purpose of compelling the e corpo
rations to yield obedience to law in future. 1
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 charte
»if each delinquent bank, be levied mid collect- ,
ed 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 ye- I
♦unis as directed by the statutes. There can
lie no just reasons why wealthy corporations
should be permitted nt their pleasure to set
the law at defiance, while individual* are com
pelled to suffer rigotous fieiialties for its viola- <
tion, The mandates of the law should lie
obeyed as promptly and implieity by the most
Influential and wealthy as by the poorest and
piost newly. This is republican equality and
l>rir people should be content jf itli nothing less.
No sooner bad the act of 22 1 December.
1857, been pa**ed, than the 4 nks. forgetful of
their promises, to expand their circulation, to
discount freely and relieve the c -nntry. refus
ed 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 a favored few, such ascot
ton buyers ami other speculators. Merchants
and others compelled to have Northern ex
change. were generally unable to obtain it for
less than three per cent. The price of cotton
declined, mid monetary distress became gener
al throughout the State.
The banks having tlms abased the generous
confidence reposed in them by the Legi ’aturc,
continued to enjoy the benefits of tie* suspen
•iun long after the batiks of the great cities of
thp North and West had resumed specie pay
dent, and until the just indignation ot an in
jured people, expressed through the public
press, by public meetings and otberw ise, be-
J«me so prevalent that they felt compelled by
jjaar of future consequence*. to retrace their
step* aad rMirta’l the speculation they other
wise would have made out of the *u*|>eiiMoii.
Tbev therefore prepared to resume on the tir*t
day of May last; thus admitting, by their re
sumption six months in advance of the time
Axed by the rtitilhi, that no siieh necu*sity a*
Iftey represented tn the Legislature ever did
exist fur the pa***gv of the act. A gentleman
of great aljility and worth, wtoo i* at the head
of nno of the most imimrtant and influential
banks in the State, in his report of M*y last;
while iip-ilogiziiig for the suspension, and re
ferring to the fa -t that the Legislature had
■ given till the Istb of November, says: • Our
'batik, impatie.it under the supposed odinm of
suspension, resolved to resume on the first of
the .present month,” (May.) It is fair in
ference, therefore, that the banks would have
Continued the suspension till the time fixed by
the act for them to resume, but for the pre*
sure of public opinion, and their impatience
‘■under the supposed odium ot suspension.'’— ,
Public opinion having thus compelled the banks
to resume before the time fixed by the statute.
1 and the crisis ha ving p.i**ed, we. as rational
men, should learn w isdom by experience, mid
try to provide ns far possible agnin-t abuse*
of their privileges by these corporations in fu
ture.
I presume it w ill not be denied by any one,
that we have erred by a too liberal mid un
| guarded g-mit of corporate powers and privil-
I i ecs to moneyed monopolies. And it is be-
• lieved that a future extension of this policy
, would soon enable these monopolies to control
the government of Georgia and make the peo
: pie the subjects of their pow er. It is already
claimed by some, that, they now have the
pow er, by combinations and the free use of
large sums of motley, to control the political
cimveiitioii* and elections of one State and in
this way to crush those w ho may have the in
I dependence to stand by the rights of the pen
! pie in opposition to their aggressive power. I
I trust that Ihe bold, independent mid patriotic
I 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- ,
j er* of the State. Let it not he Ijirgotten, how
ever, by those who have watched with anxie
ty the grow ing pow er of corporate influence.
' that th? price of republiean liberty is perpetual
, vigilance.
The monetary and commercial affairs of the i
country must necessarily remain subject to
■ panics, under heavy pressures, at certain if not r
l frequent intervals, a* long as our present bank-
i ing system is continued with its enormous
I power* and privilege*, which have been en
‘ larged mid extened by legislative enactment,
' chartering new bunks from year to year. The
people should take this subject into serious
, ennsideratioii. and pronounce upon it a calm
land deliberate judgment. Every intelligent
I person must admit that it is impossible lor a
I bank having a paper circulation three time* a*
j large as the amount of its specie, to redeem all
l its bills in specie on demand. Should all its
j bills be presented for payment nt any one time,
! and the specie be demanded, it can then re-
■ deem but one third of them. In that case, if
the bank has sullleient assets, or property, the
1 other two-third* may possibly iffd lie an ulti
mate loss, but payment mu-t lie delayed till
! tlie money cun be realized by a disposition of
those asset* and property, w hicli may not be
till the end of a lengthy and uncertain litiga
tion. It is clear, therefore, that our present ,
paper currency is nut a currency convertible, nt
all times, into gold and silver upon presenta
tion ; and that only one-third of it, should
j payment he demanded on all at one time, can,
i in the nature ot thing.’, be so convertible, no .
, long a* the banks issue three dollars in paper
! for one in coin.
I In my judgment no paper currency is sale ,
. which is not. so regulated as to be nt all times
I readily convertible into gold and silver. It is I
i true, onr people, by a sort of common consent,
■ receive the bills of the banks and use them as i
I money, though in reality they rest upon no j
1 solid specie basis. But sad exp?riencu has
taught u* that Mich a circulating medium sub-
Ijcets the country to panic at the first breath of
distrust or suspicion, w hicli may be produced
, by the failure of a single bank having a large
circulation and extensive connection* with oth
er banks. an<l may widen and extend to the
prostration of tlie credit of the w hole country.
i Such a currency, having no solid specie basis,
can lie available only so long a* the c uimiuni
ty w ill consent to receive /irmnisrs topay nnu
: ey in place of m"iie;/ iteelf.
I flic people take from the banks their billsa.’
'money. Ihe banks receive interest and often
cAchnnae. upon them. hen required to re
deem tiieir bills in specie, they suspend, it they
■ choose to do so; ami then, if an attempt i*
made to coerce payment in specie, they resist
i I it, bolding a rod over the people by threaten
> ■ ing to make them pay upon a specie basis
! debts contracted by them tor the bills of the
banks; notw itlutauding those bill*, w hen they
received them, listed on a basis of only one
third (specie. flic high prerogative of oxer
' vising banking privileges, and ot issuing their ,
own notes or bills to be circnl.iteil ns money.
■ I not resting upon any solid specie basis, is se
i ■ cured to the banks under our present system
■ ot legislation as an exclusive right, while ex-
• | ereise of similar privileges upon like term* i*
f i denied to all individual citizens of the State by
i stringent penal enactment-.
The privilege of using their own notes n«
money, gives to the favoreil few who enjoy it,
I immense advantages over their fellow citizens, i
and may often enable the managers of these
corporations to amass great wealth by their
high salaries and large profit*. It may liowev-
■ er be said, that many oi the stockholders lire i
widows and orphans; that the stock is in the
■ market for all, and that the dividends are not
greater than the profits realized from other
I investment*. This may be admitted. Indeed.
! it seems in practice to lie generally true, that
corporate privileges do not result so much to
■ the benefit of the ma*s of stiwkhohlers as to
the benefit of the few w ho manage the corpo- ,
■ I ration. To estimate correctly the profits made !
| out of the people by those engaged in banking,
we must not only count the dividend* of sev-
I en, eight or ten percent, distributed among the
i stockhi filers, hut we must also take into the
account the banking houses, real estate and
; other property purchased out of the profits of j
i the bank and held by the corporation. Be
sides, we aliould consider a reserved fund of
I two. three or four hundred thousand dollars.'
I made up of accumulated profits, and often
kept back by our larger banks and not distrib- ,
’ uted among the stockholders, together with
i the high salaries of al! the officers of the bank,
which must, he payed before any dividends are
I distributed. These sum*, though made out of
; the people by the banks, are not semi-nnnnallj i
divided among the stockholders. To these
I add all sums paid to attorney s, agents, <Vc., and
! al! amounts lost by defaulting agents, which, ’
while they cannot be set down ns profits of
, the corporation, since neither its officers prop- .
j er nor its stockholders arc benefited thereby, j
| are still sums of money which, under the
workings of the system, are drawn by the cor- i
I poratiun from the pockets of the people.
To all this add the large sums lost almost ev
ery year, on account of broken banks, whose
j bills are left worthless in the hands of the peo
pie, who have paid full price for them as mon
ey. And take into the account the further
• tact that the State, in 1848 and 1849. issued
A5L5.000 of her bonds to meet her liabilties on
account of the Central Bank. $240.0000f which
are still outstanding. And that in 1855. she
I issued $48,500 ot bonds to pay her indebted-
I ness on account of the Darien bank, which are
still unpaid, making $288,500 of bond* on ae
i count 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
i people—and we may form some estimate of
the amount* which the (icople o! Georgia have
paid ami continue to pay in taxes and suffer in
losses, to su*tain the banking system.
Again, in many instances, those who con
trol the corporation may have great advan
tages in lieing aide if they choose, to obtain
such lu'commodations ns they may desire, by
the use of its fund*, when a favorable opportu
nity for a speculation occurs. Tlie dividends
|»ti<l to stockholders are therefore no proper
criterion by which to judge of the advantage*
of the corporation to those who hold itsoffices,
and control and manage its capital ami it* op
erations; or ot the sum* lost by the people on
account of the workings of the system.
Thu* far I have discussed this question upon
the supposition that the liabilities do not ex
ce»*l three dollars for every one of specie ac
tually on lingd iu the banks to meet and satis
fy them. This *<ip|>ositioti is more favorable -
to many ot the banks than facts will justify.
I'he law of their charters only require* that
their iiabilitias shall not exceed three dyUars,
tor every one of capita) stock actually paid in.
and not three dollars lor every one of specie
actually on hand in the bank* to meet mid sat
isfy them. This supposition is more favora
ble to many of the bank* than facts will justi
fy. Tin- luw of their charters only requires }
tlmt their liabilities shall not exceed three dol- |
birs for every one of capital stock actually paid
in, and not tie ee dollars for every one of specie j
on hand to meet those liabilities. As an illns
tration of the error of onr present legislation in ,
I incorporating banks, suppose the amount of,
the capital stock of the bank be limited by the ■
charter to $500,000, w hich is to be paid in. in
gold and silver, by the stockholders. The ,
charter then provide* that the liabilities of tlie I
bank shall at no time exceed three times the
amount of the capital actually paid in. The '
stockholders /iay in the $500,000 in gold and
silver. Thu directors of the bank may then,
w ithout any violation of tlie letter of the char- 1
ter, incur liabilities against the ha ik to any j
amount that doe* not exceed $1,500,000; and
that, too, without any oldigaton <m their part
to keep in their vault* the $500,000 actually
paid in, or a like sum. If thev should take imt
S4OO ,000 of their specie and invest it in real
estate or other properly, leaving but $100.00(1 '
1 of speeie in vaults, thev mat still contract
, debts to the amount of a million and a halt.
and may point in triumph to the language oi i
their charter, and to the fact that the $500,000
i of capital stock was once actually a>
their authority for so doing.
This hank legislation of our State does not i
seem to have been well understood by our
people. They have generally believed that our
banks by the letter of their charter*, were re<piir- '
ed to have on hatnl at all times an amount of ,
specie one third as large as tlie entire amount
iof their liabilities. The banks have under
stood the matter very ditierently. and have not
only claimed, but exercised the right w hen
they regarded it their intercut, to extern! their
liabilities far beyond three dollar* tor every
one of specie actually on hand to meet those
liabilities. By examination of their returns
made to this Department in October, 1857, it
will be seen that at the time of the late sus
pcns’mn of our banks in Augusta and Savan
nah. the liabilities of one of them for bill* in
circulation ami individual deposits, exceed
t/iirtiea. dollars l<u’ every one dollar of both
specie and bills of other banks which it then
had on hand. Another had one dollar in x/>c
•'ie in its vaults for every fifteen doll.r •« of its
liabilities for bills in circulation and <lepo*its.
Another had not one dollar in specie for every
»eren of liability for bills in circulation ami de
posits; and another had one dollar //< specie
lor every eleven dollars ot its liabilities of tiie
character mentioned above. It is true these
banks had other assets, but those assets were
not money. The question naturally *ugje<ts
itself, how can such a currency be convertible
into gold ami silver—the inOney of the consti
tution—on demand or presentation? How
, can a bank with t /i/7rcn dollars of cash liabili
ties tor every one dollar in specie, or even of
live dollars for one, pay it* liabilities prompt
ly on demand? It is impossible. An 1 how
i can its bills be justly considered safe a* a cir
culating medium or 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
i opinion that we should do all in our power to
j bring about its complete reformation, an ! it
this be not possible, we should abandon it en
tirely. lam the advocate of no harsh meas
ure that would cither violate the legal rights
ot the present corporations, (however unwise
ly they were granted.) or that would bring
distress upon the people, by a sudden return
from a paper to a specie currency. A refor
mation so radical, if attempted, must be the
work of years. If the legislature would < <»n
tinually refuse to charter any new bank, or to
enlarge the capita! stock ot. or re-chart r any
bank now in exi>tem*e. the system would grad
ually work itself out by etllux of time; ami
we might without any sti Men shock, ret ir.i
safely to the currency of the constitute 1. pi mt
ousclvcs upon a tirin specie bads, ami r. I <mr
-1 selves of a system agnin-t which thcgrv.it ano
good men who cond'ictcd the revoluti<> i ami
formed our constitution intended to guard their
posterity, when they declared in the constitu
tion that nothing but gold and silvercuifi should
i be made a legal tender.
In two of the States of this Union bank* arc
prohibited by constitutional provision: two
. others have no bank-, ami another had but two
small banks, whose charter*, it is said, have
been forfeited by the late suspension. Andi
am informed upon what I consider reliable an
thority, that the late commercial pressure was
1 comparatively hut little ielt within the limit*
of those States.
Should our people determine, however, to
continue the present banking sy stem, and to
charter new banks, increasing their number
; and thereby increasing their power in the
State. 1 would respectfully urge tlie import race,
us guarding all charters with much greater
stringency in the future. Let the ( barter of
! each provide that the entire liabilities of the ,
hank shall, at no time, exceed three dollars for (
every one ftf spjeie actu illy in ir* vault* an I
bona fide the property of the hank, on pain of
. immediate forfeiture. Let the simple fact of
suspension of specie payment render the char
ter absolutely null and void. This would de- ;
ter them from engaging in such wild specula- i
i tions and over issues as compel them to sik- j
' pend in ca.se of pres*ure. Let provision also
be made tlfat all executions issued again-t the
corporation may be levied upon the property
of any stockholder until the creditor Be satis
fied, leaving the stockholder to his legal rcme- !
dies against the rest of (he stockholder* to m-
• force conlribiition among themselves. Let the
bills of the banks in the hands <»f the people ar
the time of suspen-ion. bear interest from that
. time till paid. And let the Legislature retain
the right, by express reservation in the char- 1
, ter, to alter, modify <*r repeal it at pleasure.— j
In my opinion it would be best for the Legis
laturc to refuse to grant a charter U». any cor
poration tor any purpose whatever, without
retaining a similar power, should its exercise
• be required by the interests of the State or the
public good. If the corporation is u.iwil.ing
to trust the people with this repealing |M»\ser,
how much more should the people be unwilling
to trust the corporation without it ?
PROHIBITION OF SMAI L BILLS
Several of the State* have already passed
law- prohibiting the emission by their banks
ot small lulls. I onceentertaincil doubts wheth
er our Legislature could do this without a vio
lation of the chartered privileges of the banks;
but on more mature reflect ion and careful ex-
I amination, those doubts are entirely removed
from my mind. I therefore recommend the
pas-age of a law prohibiting the emission of
*mall hills by the banks of this State, and for
bidding, under heavy |»vnakic*. tlie circulation
within this State of bills of a like denomination
i-sued by bank* of other States. Such an act
I might prohibit the circulation of all bilk of ft
denomination under ten dollars, after 12
I month* after the passage of the act. and those
! of a denomination under twenty dollars in six
months thereafter, or nt sich other stated
times as might be thought best, so as not to
embarrass the business transactions of the
country. The effect of such a law would be to
cause small bills to be withdrawn from circu
lation. and as they must l»e 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 bu-inv** transaction*. 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 ami silver, which wouhl re
main good, however much bank bills might
depreciate.
K! II TKEASI-RT -TSTEM.
I al-o beg h ave to call the attention of the
General A*«’inbly to the propriety of estab
lishing by l.\v a *y*tem of onr State similar to
the >i b-trvr*ury system of the United States,
the wisdom of which ha been tally demon
strated by the beneficial result* of it* prm tiril
’ operition. I earnestly rerr-mmend Um adop
tion of such a system. Let all payments into
, Um treasury after a rcawnablo-tmie to be fixed i
' by the Legislature be made in gold and silver,
and let the State pay the interest upon her
public debt, the salaries of her ottic.ers, the per
diem of her Legislator*, the money due the
several counties for school purposes, together
i with all her other liabilities in gold and silver.
I Os course the system should go into operation
' gradually. This, in connection with the pro
hibition of the circulatior. 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 basis,
making the people more inde)»endent of bank*,
and enabling them to withstand the shrwk with ;
' much less injury in ca*e of a commercial crisi
and bank suspension. It is believed that no
seriou* inconvenience could result to the tax
payer from such a law. a* the gold and silver
paid into the Treasury by those indebted to 1
the State, would be returned by the State in
I the payment of her debt- due to her creditor*. ,
' and would again gn into circulation among the
people. Should any inconvenience be appre
hended in the transportation of specie from
the treasury to the creditor, provision might
Ih» made authorizing certificates of deposit to
tie i**ued. which might be paid to the creditor
at hi- request in the place of the coin. These ,
1 certificates of deposit might be of such denom
ination ns the Legislature mav prescribe, hand
somely engraved upon steel plate*, which plate
' should be deposited in the Trva*ury for safe keep
ing. Each certificate might be signed by the
• Treasurer and countersigned by the Secretary of
i State, w ith the impres*ion of the great seal of
the State stampe<l upon it, and a register of
the issue of each kept in the Treasury to pre
vent counterfeit. These certificates might be
made payable to the person to whom they first
insiie or to bearer. They’ would supply the 1
place of bank bills so far as the conveniences of
. paper currency are concerned, while they
would be subject to none of the tluclua
! ntions of value and the uncertainties of bank
hill*. 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,
i when they were in circulation, remain in the
vault- of the Treasury to redeem them when
returned to it. These certificates, thus predi
cated upon coin in the Treasury, dollar lor
dollar, would Be receivable in payment of tax
es or ol any debt due the State. They would
Be a safe medium of exchange, and wouhl. to
the amount of their issue, be a paper currency
at al! times convertible into gold and silver up
on presentation at the Treasury. Each dollar
ot paper would have for its basis a dollar of •
specie in the Treasury, and a; the faith of the
State would he pledged for their redemption,
it would be impossible for a citizen to su-tain
los- upon them. They would l>e a currency at
all time- and under all circumstances of uni
form par value. This would render the gov
ernment of the State entirely independent of
all bank* and bank agencies, and wouhl in a
great degree destroy the power of the hanks
over the people, w hile it would give the people
gold and -ilver change in all their small transac
tion*. ami a paper currency perfectly secure in ,
! many of their larger ones.
The .-uggestion* made by the Secretary of
' the I rea-ury of the United States. ( .Mr. Cobb,) i
I in hi* lute report to Congress upon the subject
of the establishment of a Sub-Treasury system
by the State*, similar to that of the United
• State-, ami the prohibition of the circulation
f of bank It’d!* under the denomination of twen
ty dollar*, are, in my judgment, founded in
wisdom, and commend tbvinselve* to the se-
» rioiis consideration of the Legislature. The
State <»t Ohio has already shown her apprecia
tion oi the wisdom <4 tlie-c -uggestimi*. bv
tran.-terring much of their substance to her
statute Book*, allowing sufficient time for the
1 gradual inauguration of the system into practi
cal operation.
. WESTERN A’ ATI \XTIC RAILROAD.
l «ir .i -tatcinciit «»f tli? present condition of
the e-lvrn dr .\ilm’ c Kailroad, its open.- ,
I tion* and imo ue for theii-cal year ending 3oth
I September la.-t. I beg leave to refer yo It» th •
r report of Dr. John W. Lewis, its able ami ••rli
ci it Snpciiuleirtkut. who has-bo.vn him-elf
i | to be a m «-t vigilant, active a i l valuable pub-
I lie servant. In pa-*‘mg this well merited com
r plimc.it upon lb • faithful Superintendent, I
would do injii-rice to Bis a-* • date officer-, and
i the other agents ami employees of the Road.
j w ere I Io fail to express my entire (•onfidcucu
• i in their integrity ami business ipi.ilifirathm*.
» and to commend the zeal ami energy with
. which they have exerted themselves lor the
• *uccc*s of the Road and the a Ivanceineiit of
I the be.-r interest of the State. For their < tii-
j ciency. fidelity and integrity, they have my
• sincere thanks, and arc in my opinion entitled
to the thanks of the whole people of Geor
gia.
• <)w ing to the commercial pressure, ami the
Consequent stagnation of the trade and busi
ness. the gross incomes of the Road during
the present year, from freight and travel, have
been le*s than they were for the previous J
year, w hich was one of unusual prosperity .
I‘he low price <»f corn, w heat and other kinds
■ of grain (luring the present year, has, in a great
i degree, prevente ! their -hipmeiit. Not only
were the prices of wheat much lower than they
were the year previous, bat the quantity made
in all that section of country which supplies tlie
Road w ith freights, was much less.
Merchants limited their purchases of goods
i to the limited demand for them in the country :
i hence, the diminution of incomes to the Road
on account of freight on merchandize.
1 hit portion of the R«»ad track between
Tiuind Hill and Chattanooga, (seven mile* cx
’ ce| t d) whs in a very bad condition when Dr.
Lewis took charge of the Road, and it ha* re
quire I a great deal of costly repairs. A con
-i h r d»le portion of the track between those
point* Iris been taken up and thoroughly re
paired. on! small stones |»oiindcd into the earth
under the new cross tie* at several places
1 where in wet weather the earth is so soft that 1
the Road-bed could not (•therwise be made
, firm. This kind ot repair* i* unite expensive,
j but it i* believed to be the cheapest in the
en 1. a- the track in these soft places will re
main firm when once l»el«lcd in stone. The
i entire track i* Ikdicved to he in better condi- '
: tion than it ha* for several year*, (a force of:
about three hundred hand* having been em
ployed in its repair most of the summer.) and j
all the rolling stock is in good order. Repairs j
have also been lately made at AHatoona, Pe- :
I tit’s ( reek ami the Tunnel.
' Since your last meeting one thousand tons
of new T iron have been purchased, which lias
all been p lid for since the l«t day of January
• • last. This will lay abo it eleven miles of the
track with new. heavy bar. Part of this iron
I ha* already been laid down upon the track.
‘ and the remain ler. now’being received, will
I noon be laid down. Other new iron will be
purchased as fast as it i* needed.
1 i It i* a matter of great importance that the
• , Road be kept in good order. For this pur
po*e it is proper that several miles of the track j
• . at different plapes should be laid with new iron
I j every year; otherwise a large portion of the
> : track might wear out at thc*ametime.requiringn
very heavy outlay to replace it. I hold that no
administration, for the purpose of pay ing inon
’ , ey into the Treasury or other* ine. h:v* a right
‘ to let the road run down. He who does it de
’ serves to be cumlemntul; and I am will ing
I that my ndmiiii<tratioii, so fur a* the manage
ment of the Road is concui'iied, shall be judged
' by this standard.
According to the report of the Senate Com
mittee. the priM-nt Superintendent, when lie
took charge of the Road. l*t January la*t. win
chargeable with asset* amounting to $57,324.-
15, <lne from connecting Road* and solvent
ngent*. with a balance in the Treasury of $15.-
907,43. And In- paid, according to the report,
from l*t January to l*t July the *um of $157,-
773.23 to the creditor* of the Rond,neconnt
of indebtedm** <'mitrneted prior to l*t Janua
ry. 1858. and had in the treiMiry of the Rond
l»t July, n balance of $35,010.98. It will lie
neen. therefore, that the amount in the t retail
ry wa* much .mailer Ist of January than it
waa let of July; and the amount of debt con
tra<.**l bv (ormer adminiatralion* <>f the Road,
and paid by tlir present Superintendent from
Ist January to July, 1858 i wtu $100,449.0# ;
’ Is than the ninon nt of solvent assets turn
oil over to him. The present Superintendent
would seem therefore to be entitled to this
sum. paid out of his not carninp* «■» a cash
' credit. In this Minn is included the price of 463
tons of the new iron above mentioned, wliiqli
was ordered by the former Superintendent pri
or to Ist January last, ami has been paid for
i ami»laid down by the present Superintendent
since that time; who has also, through the
Treasurer of the Road. paid into the State I
Treasury. commenciiiL' with the month of March ,
bi*t. $200,000. (>f this sum $175,000 had been
pah! in at the date of his report of 30th of
I September. and $25,000 since that liineforthc
month of October. The current expenses of
the Road have been paid. No new debts are •
permitted to accunmlate whicli are not prompt
ly paid, if the creditor can be found, at the end
I of each month.
The new passenger depot at ('hattanonga is
, in process of construction under the superin
tendence of the Cliief Engineer of the Road,
with workmen hire*! by the general Superin
tendent. The building is 101 feet wide and
3o:l Met long, and is a very solid and well built
structure. It i* built ot stone to the spring of
the arches, which are turned with brick. It is
, expected to be completed and ready for use in
a tew weeks. All expenses of this structure
. have been paid monthly. It is intended that
the depot be used by all the Roads connecting
at that place. As some of these Roads were
not in a condition to incur the expense at the
time the work was commenced of contributing
to its erection, it was thought best, as there
was great need of the depot, tor our Road to
go on and build it. and take the obligations of
the connecting Roads f«»r their proportion of
the expense. The Nashville & Chattanooga
Road takesone-fonrth interest in the depot, and
pays SIO,OOO. The East Tennessee ami Geor
gia Railroad Company agrees to take another
fourth, and to pay alike sum, at twoand three
, years from the time they are ready to use it,
with semi-annual interest at the rate of seven
per rent, per annum; and it is believed that
rhe Memphis and Charleston Road will also
take a fourth interest.
I)r. Lewis took charge of the Road on the
first day of January last, and was nndcr the
necessity of applying the net earnings of the
months of January and February in payment
of debt* against the Road which existed prior
to that time, ami for necessary repairs on the
Road, including payment for iron previously
ordered. It will be seen that the payments
made into the State Treasury from the first of
March last to the present time, have averaged
twenty-five thousand dollars per month. It is
believed in future that all necessary repairs can
lx? made, all current expenses promptly paid,
every department of the Road kept in first
rate order, ami that an average of $25,000 per
month can be paid into the State Treasury,
from year to year.
This may be regarded by some as an over es
timate of the legitimate net earnings to be re
alized in future from the R»ad. As an evi
dence, however, of my confidence in its cor
rectness, I have no hesitation in saying that 1
I would risk my personal fortune on the result.
Were I satisfied that it were the desire of the
. Legislature ami people of Georgia, I would
bind myself as an individual to take the Rond
fora term of ten years commencing firstof Jan
uary next; and 1 would give bond in any rea
sonable sum which might be required, with
ample security, to return it in a* good order as
it was Ist J; unary last. I would laydown ten
miles ot new T iron on the track every year,
the-Id iron taken up. or the price of it, being
mine. 1 would take the benefits and the bur
thens of al! contracts mnde by the authorities
of the Road since the l>t of January last, re
ceiving all sums owing to the Road ami paving
all debtsowing by the Road on contracts made
since that time. I would bin I myself that the
present price of f:\ iglits >bould at no time be
im rea-vd. if such increase w«>ul I make the
i freight- higher than the average price charged
for freights 1»\ the other road* in Georgia; .am!
I would pav into the Treasury of the State
$25,000 per nnmt’i for the use of the road, its
equipments aid appurtenance*, to be paid
monthly in cash or in bonds of th * State. <»r
. in the bond- which no v constitute the funded
debt of the road ; for the pavment of which,
the faith of the State has been pledged for
years. Ami every time a payment should be
delayed twenty-five days after it was due. 1
would forfeit and pay to th • State $16,000 for
th‘delay, this would be $300,00 I per an
num principal besides interest. Anda term of
ten years at these rates, counting simple inter
est at seven percent, per annum on ear 11 month*
lv payment from the time it was paid into the
Treasury till the eml of the lease, would yield
the sum of $4,041,250 for the use of the road
for that time.
Regarding the question a- settled, therefore.
; that the road with proper management will
pay into the Treasury $25.0:»0 per month, or
$300,000 annually clear of all expenses and re
pairs the inquiry naturally ar ses, what dispo
sition shall be made of the money.
PAYMENT OF THE PUBLIC DEBT—COMMON’SCHOOL
SYSTEM.
The public del»t of the State amounts at
present to $2,630,506. payable at different
times during the next 20 years. A large por
-1 tion of this debt has been contracted from time
to time ov account of the State Road. This
' debt, it will be remembered, is subjeet by leg
islation, already had. to be increased $900,000,
an account of the State's subscription for stock
in the Atlantic and Gulf Railroad Company.
This would make the whole debt $3,530,500,
should no part of it be redeemed before the
bonds of the State for the above mentioned
$900,000 shall have been issued. By the
terms of the contract with the Bondholders.
$289,500 of this debt is now subject to be paid
at the option of the State, though payment
cannot be demanded till 1863 ami 1868. The
i Central Bank bonds are also falling due in con
’ siderable sums annually. Good faith requires
that the debts of the State be promptly met
when due. And sound policy dictates that
such bonds as are due or not, at the option of
the State, be taken up as fast as she has the
means.
The net earnings of the Western ami Atlan
tic Railroad are already pledge 1 for the pay
: mentof a large portion of this debt. J there
-1 fore recommend the passage of an art setting
1 apart $260,000 per annum of the net earnings
1 of the Road. to be applied in payment and pur
chase of the public debt. And. in view of the '
great and acknowledged necessity existing for
the education of the children of the State, ;
and of the immense advantages 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 permanent Com
mon School Fund for Georgia, to be increased
as fast as the public debt is diminished ; and ,
that the faith of the State be solemnly pledged |
{ that no part of this sum shall ever be applied .
to. or appropriated 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 taken up th ■ $200,000 of the State's
Iwmds, to issue $200,060 of new bonds, paya
ble at some distant period to be fixed by the j
Legislature, to the Secretary of State as Tnis
j tec of the Common School Fund of the State ;
with semi-annual interest at six per cent, per
annum. The bonds to be deposited in the of
fice of the Secretary of State. As the public
debt is thus annually diminished the School
Fund will be annually increased, until the
w hole 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 purpoM « will l»e likewise increased.
Should this plan be adopted, in a few years
the school fund of Georgia, including the pres
ent fund for that purpose, would be in round
numbers S4JMKi,OOO. The amount of interest
accruing from this fund, to l»e expended in
erecting -chool houses and paying teachers,
w otild l>e $240.000 per annum. I am aware
of the difficulties that have laen encountered
by those who have attempted heretofore to j
drvinc a practical an I t*q nd uchoo! ►y»U*m for •
tile Sut«, owing tn n zrmt decree. It is believ
ed, to the fact that portions of our State are
! very densely, while others are quite sparsely
populated. But the tact of our inability to
accomplish all we may desire is no mitticient i
reason why we should neglect to do that which
is in onr pow er. Probably the principal cause !
ot onr failure in the past is attributable to a lack
of funds and of competent teachers.
With the gradual increase of the fund prt>- !
posed, it is not doubted that the wisdom of
our State would troui time to time im-
I prove onr present defective system till it i
would l>e so perfected as to afford the advan- |
tages of an education to all or nearly all the
children of the State. Let the teachers be
paid by the State, and let every free white!
child in the State have an eijnal right to at
tend and receive instruction in the public i
schools. Let it be a Common School, not a
Poor School System. Let the children of the
richest and the rest parents in the State, I
meet in the school room on terms of perfect i
equality ot right. Let there be no aristocracy !
there but an aristocracy of e<dor and of con
duct. In other words, let every free white
child in Georgia, whose conduct is good, stand i
upon an equality of right w ith any and even
other one in the scho<d room. In this wav the 1
advantages of education might be gradually j
diffused among the people, and many of the
noblest intellects in Georgia, now bedimmed
by poverty and not developed for want of ed
ucation. might be made to shine forth in all i
their splendor, blessing both Church and Stale
by their nolde deeds.
Should $4,000,000 be insufficient to raise
annually the sum required, the fund might be
increased from the incomes of the road to any
amount necessary to accomplish the object. 1
| The interest on this fund should lie semi-annu- I
ally distributed equally among the counties, in I
! proportion to the whole number of free white
children in each, between six and sixteen, or
of such other age as the Legislature may desig- '
mate. Authority should also be left with each
county to tax itself, at its own pleasure to in- i
crease its school fund, as at present. And it
should be left to the Interior Court or School
, Commissioners of each county to lay off the
county into snch School districts as will be
most convenient to its population, having due
regard to their number and condition.
Kin CATION OF TKACH EKS.
Assuming that provision will be thus made
to raise all the funds necessary to build school
bouses and pay the teachers to educate all the
i free w bite children of the State, the nextqnes
' tion which presents itself, and perhaps the
most important one of nil is, How shall the
. | State supply herself w ith competent teachers,
raised ill her midst and devoted to her inter
ests and her inst tutions —Southern men, with
Southern heartsand Southern sentiments?
For the purpose of educating Georgia teach
j ers in Georgia colleges, 1 propose that the
State is.ue her bonds payable at such distant
times as the Legislature may designate, bear
ing interest at seven per cent., payable semi
' annually ; the interest to be paid out of the
net earnings of the State Road, and the bonds
to lie redeemed out of its proceeds, should it
ever lie sold. That she deliver $200,000 of
these bonds to the State University, at Athens,
as an additional endowment; $50,000 to the
Georgia Military Institute, at Marietta, and
$50,000 to each of the three denominational
colleges in the State, in consideration that each
of said five Colleges, will bind itself to educate
annually one young man as a State student for
every S2OO of annual interest which the* en
dowment given by the State pays to the Col
lege; furnishing him with board, lodging,
lights, washing, tuition, and nil necessary ex
penses except clothing, w hich might be fur
nished by the student himself or his parents,
she interest on this $400,000 ot bonds would j
be S2H 000 per a.mum. This sum w ould main
tain and instruct, as above suggested, one hun
dred and forty young men annually, being one ;
from each county in the State, and tw o from
each of the fourteen counties having the larg
est population, unless other new counties are
formed. I propose that these young men be
selected from ail the counties in the Mate. .
from that chi . only of young luell w hose pa*
■ r. tits are unable to educate tlieni. and that on
ly such be selected a« ale of goml moral char
a ter. indu-rrious and attentive, w ho desire an
education, and who give pron;ise of future use- 1
Iciness. That the selection be made in each
1 county by a competent committee appointed
by the Inferior Court, after an < xamimition at i
some public place in the comity of all such
young men as desire to become beneficiaries, I
and who w ill attend on a dav to be fixed by |
! the Inferior Court, after giving due notice.— .
Let the committee I.e sworn that they will be
governed in the selection by the merits of the '
.•ipplicant, without prejudice or partiality;
and that they will select no one w hose parents
ate known to be aide to give him a collegiate ,
education w ithout doing injustice to the rest I
iof his family. And I propose that the place ,
of any such student in college be supplied by ’
. another, w henever the faculty of the college ’
| shall certify to the Inferior Court of his conn- !
tv, that lie is neglecting his studies or failing i
| to make reasonable progress, or tlmt lie lias .
■ become addicted to immoral habits. I propose j
that the State, in this maimer, give to each of
the poor young men thus selected, his collegi
ate education, on condition that he w ill enter
- into a pledge of honor, to make teaching his j
profession in the county from which he is sent, j
for as many years as he shall have been main- !
tained and educated by the State in college;
the State permitting him to enjoy the incomes .
of his labor, but requiring him to labor as a i
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 w ith competent teachers. And as these
young men while teaching in the various coun
ties in the State w ould prepare others to teach
without going to college, pure st ream* of learn
ing would thus be caused to flow out from the
colleges, and be diffused among the masses of
the people throughout the State. Then we
would not so often hear the complaint, that
the child must unlearn at one school what it
has taken it months perhaps to learn nt anoth
er under an incompetent teacher. This plan
is intended to equalize as far as possible the
poor with the rich, by giving to as many of
them as possible, at the expense of the State,
an opportunity to educate their sons in college,
a privilege at present confined iilinoft exclusive-
Ily to the rich; as poor men h ive not means to
educate their sons however deserving or prom
ising they may be.
Under the plan above proposed it is not in
tended to make a donation, or absolute gift to
the colleges of a single dollar of the bonds of
the State. It is intended only to deliver the
bonds to the colleges and to pay to them the
interest semi-annually, as a compensation for
them to maintain and educate annually one
hundred and for'y young men of promise, who
i could in no other w ay enjoy the advantages of
; a liberal education ; who in turn are to diffuse
intelligence among the great body of the peo
ple, thereby supplying the State with Georgia
teachers well qualified 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 for the State lie ap
pointed with a salary sufficient to secure the
l>est talent, whose duty it shall be to collect
valuable information ii|m>ii the subject, and re
port annually to the Executive, to be laid be
fore the Legislature. And to traverse the
State in every direction, l isit the schools, ad
dress the people, anil do all in his power to
create a lively interest on the subject ot educa
tion.
Carry out this plan mid who can estimate
its benefits to the State ? 1 regard the educa
tion ot the children of the State, as the grand
objei t of primary importance, w hich should,
if necessary, take precedence ot all other
questions of’State policy. Fori apprehend II
w ill lie readily admitted by every intelligent
person, that the stability and permanence of.
our repiildicnii institutions hang upon the in
telligence and virtue of our people, Xo mon
ardi rules here! Ami it is the pride of our
i s\stu«u of g< vemment that etich citizeu at the |
-7 - " •' 1 1 ~i
ballot box possesses equal rights of sovereign
ty with every other one. Tlianks be to our
Heavenly Father, the impular voice cannot
here lie hushed in the silence of despotism, but
the popular will dictates the laws. May it
thus ever remain ! How important it is, there
fore, that the masses of the people be educated
so each iftny be able to read and understand for
himself the Constitution and hlstorv of his
country, and to jndge and decide for' himself
what are the true principles and policy of bis
government. But how much more important
iit is, in my opinion, that every person i n the
State be enabled to read for him or herself the
Holy Bible, mid to comprehend the great prin
ciples of Christianity, in the etenud truths of
which I tuna firm though humble believer
: Educate the masses and inculcate virtue and
morality, mid you lay Lnthd and deep, in the
hearts of our people, the only sure foundations
ot republican liberty mid religious toleration
; the latter of which is the brightest gem in the
I constitution of our country;
By adopting the pnqaisdd lino of policy we
have it in onr power, w ithout increase bf tax
ation or burdens to onr people, to place Geor
gia, so far as education is concerned, in the
proudest position of any State in the Utiluh.
Let her educate every son and daughter with
in her limits, mid she may then justly boast
that she is the Empire State of not only the
South, but of the whole Union. By tliis plan
the public debt would be reduced, and the
school fund increased, annually, $200,000 • ah<l
the interest amounting yearly to $28,000 on
tin- bonds delivered to the Colleges Mould l>c
paid semi-annually, out of the net earnings of
the State Road ; and there would still be k-ft
an annual income from that source of $72 000
to be applied to other purposes.
KEIH'CTION OF TAXES.
The present annual expenses of the Govern
ment. including the civil establishment, the in
terest on the public debt, support of Asvhinik,
i Academy for the Blind, State Cadets in Milita
; ry Institute. &c., amount to about $446,000;
without including any of the extraordinary ap
propriations. The present annual incomes to
the Treasury from the State tax, the tax on
bank stock, railroads, dividends on bank stock,
and from other miscellaneous sources, such an
a copy grants, testimonials, .tc,, amount to
about $446,000. exclusive of incomes from the
State Road. It follows, therefore, after allow
ing some $22,000 per annum of special appro
pri.-itions, outside of the actual expenses of the
government, that the taxes might he reduced
from the incomes ot the Road abodt $50,000
per annum besides establishing and providing
for the successful operation of the proposei)
school system. Should the Legislature, how
ever, after providing for the reduction of the
public debt, the support of the school system,
and the education of teachers, make any con
siderable appropriations, other than those
w hich may be absolutely necessary to support
the Government, no material reduction of the
taxes could be made.
In the event the Legislature should disap
prove of the proposition to apply the net earn
ings of the Road to the payment of the public
dobt and to the education of the children of the
State, I respectfully recommend that $150,000
per annum, instead of about fifty thousand as
above proposed, be applied in reduction of the
taxes of flic people; and that the stirpins b«
used for such purposes of internal improve
ment as will tend most to the developimnt of
the resources of the State. lam aware there
are those who object to any reduction of taxes,
believing it necessary in order to attach the
people to the Government, to raise large sums
of money from them by taxation, to lie appro
priated in some way by the Legislature. I
take a diffcretit view of this subject, and Ih**
lievc that all unnecessary, wasteful or extrav
agant appropriations should be avoided; end
that no more taxes should be raised than the
necessitie s of the State require, under an
; nomic.il administration of the Governnient.
I cannot believe that the people's h.ye for
the gi-vei-nmcnt would be increased by. high
taxation. When tin- people were paying in
ere.-ised taxes to build the Western <V Atlantic
. Railroad, tiny were told, that if they wield
*nbln.t tot >i*. t lie in<-uim*s of the Road. wh«-tl
tinished. should be applied in )mrt nt least in
rcdwtimi of their taxes. I think they have a
reason toexpict. and a right to ilim.-utd. that
the | ledges shall be redeemed; and 1 rcspect
i;lly urge upon you ns their reprcn ntatives
the propriety of enacting such laws as will give
them the benefit of the incomes of the Road
as above -ngae-ted. Tliis. in my jmlglriet.t,
w ould be infinitely better than to sipmndi r the
funds in huge appropriations of doubtful pro
i priety. It the road be faithfully and economi
cally managed, the net earnings, paid montiily
into the Treasury, and applied to educating
the youth of the State, the payment of the
public debt mid the reduction of the taxes of
, the people, it will then in rcidity be what it
should be n blessing to the whole people of
. Georgia.
ATLANTIC* C.VLF LAILKOAn.
I am informed that the work u|uin flic At
lantic & Gulf Railroad is progressing with rea
sonable rapidity under the management of hr.
.lames ['. Screven, its able and active I’re«i
--! dent Early in the year the necessary evidence
was furnished to me, that the individual stock
holders had paid in twenty per cent, ujion
$6H0.000 of the stock, which entitled the Com
pany, under the provisions of the statute, to
! all for twenty per eent. upon the State’s pres
ent subscription of $500,000. I accordingly,
in connection w ith Col. Watkins, our iiHlnstri-
■ oils and faithful Secretary of State, issued and
delivered to the Company at par SIOO,OOO of
! six per cent. State bonds, payable in New
! York, with coupons attached. The lamda
bear date Ist February, 1858, and have twenty
years to run. The interest is payable semi
annually. This road is intended to devulopc
the resources of a large and interesting portion
of the State.
STATE AID TO RAILROADS.
Other sections of tlie State are still destitute
of the advantages of Railroad facilities. lam
decidedly of the opinion that it would he good
policy for the State to tender her credit, to aid
in the construction of such Roads as may be
necessary to develope her vast resources, pro
vided she be made perfectly secure beyond
doubt against ultimate loss. This could be
done by the endorsement of the bonds of the
company, by the State, after a certain propor
tion of the Roed is first completetl, for an
amount sufficient to enable the company to pur
chase iron for the Road. The bonds thus en
dorsed should be made payable twenty years
after date, with six per cent, interest, pay
able semi-annually ; and let the State take
a mortgage upon the entire Road, and* alf
its appurtenances, declared by law to be prior
to all other liens; to be foreclosed, and the
Road and its appurtenances sold in sixty or
ninety days after the failure of the company to
pay any instalment of either interest or princi
pal when due. And in the event the w hole
Road and its appurtenances, should fail
under such mortgage sale to bring a sum suffi
cient to pay the entire amoitnt for which the
State shall have become liable, on account of
the Company, let the law provide that each
solvent stockholder shall be liable to the State,
according to the nutnlier of the shares he may
own. for his proportion of the deficiency.—
Tliis, in my judgment, would make the State
secure, while it would enable ench coiiqituiy
engaged in the construction of a Road necessa
ry to the development of the resoun es of the
State, to obtain the money requisite to its com
pletion. upon such time and terms as would en
able the company, should the Road prove as
remunerative as its projectors anticipated, to
refund it out of the future net earnings of the
Road, Os course sticli a law should be a gen
eral one, alike applicable to all Roads in any
part of the State, in the betietits of which, sll
Ronds now in progress of construction or to
lie hereafter projected, on equal und well <lo
tined terms, conditions and limitations, might
participate. Guard the State against possibili
ty of loss, mid I am decidedly in favor of State
aid, by lending her credit in the construction
of all -noli Road- a, may lie necessary to the ,
pro-|>erity of her people, and the development
| of her rssourew-
