Butte record., 1856-01-19
Gov. Bfgler's Annual Message.

'"6S VI WV OiSio' W 'nC p coe"N IA A. {.
Legislature. The following portion Of
the Message shows strong and substan-
tial reasons FIR the present Indebtedness
Of the State, and will be read with in
terest BY all.
Before, however, setting forth the f.
nancial cor dilion of the State at the
PRESENT tine, and suggesting such meas
ures Of economy and reform as are deem
ed necessary to reduce the expenditures
Of Government, it may not be improp
er briefly to call your attention to lew
/ facts and circumstances connected with
the early history Of the State, that you
may the better understand and appr. ci-
ate the real caus of the Indebtedness
incurred. For Notwithstanding the er-
rors which may have been committed from
a lack IF correct information and cxpe-
ri nee as to the wants and requ rements
of a new State, emerging at one stride
from the cradle to The estate of full man.
hood, we are entitled 10 the Just inferen-
ces only TO be drawn from car ful ex-
animation of the various causes which
have to very great extent laid the foun-
datioD of our ind. btedness.
1t will be remembered that Cal fornia
uAliAe o'her new States of the confrde-
racy, never received the fostering care
of the General Government and had no
Territorial organic tion,-rh,t wise pro-
vision aptly termed the period OF proba-
ton and tutel,'ge, during which the
agen's of young community are expec-
ted to develop The latent resources Of
the future State, become acquainted
with the wants and requirements Of its
people and learn that experience so
necessary to judicious and proper legis.
lat,on; and that, too, without feeling
the blight OF onerous taxation to support
a cumb rsome and perhaps unnecessary
State Government But fro II the date
Of its first settl,me to its admission in
10 the Union California had been de-
MED he fostering and protecting Care of
Congress, and only felt the rigor of its
law, in the collection of rev nue. for the
support and maintenance of that Govern
IN, mt which had failed to make p owls
ion for the wants aud necessities of her
people.
The failure of Congress to provide a
territorial government for Ca Hernia
compelled her people to institute and
set in mniion all the machinery of an
expensive State Government, without "a
dollar in the t easnry 10 pay the expen-
ses att ndant Upon lis Inauguration and
maintenance.
With an empty treasury, the members
Of the first legislature assembled, and up
on them devolved not only the onerous
duty of provi ling for the payment of in
debledne~s already incurred and for the
imm' date and accIuing demands of the
governm mt, but mt the same time to
give form and vitality to the chaotic ele
menis. which it vas requisite t" mould
t" the genius Of our peopl. and The char
acter of our republican institutions.
Thus surrounded bv circumstances cal-
culatrd to dampen The ardor and depres
the spirits of IA body of men less deter>
mined to complete the work of oraani-
zing a new State, the members of that
legisl ,ture c. st about for the means of
carrying on the new government. The
plan finally adopted although believed
by many 10 be runnus in its consequent
ces, and at the time so regarded by my
self, was the issuance of bonds known
AS the three per cent bonds, bearing an
interest at the rate OF three per mt per
month. Although the policy of this
measure has beer doubt, d by some, and
unequivocally condemn d by others, it is
still true that the peculiar condition of
affairs at that time, the urgent necessi-
ty for funds, and pressing circumstances
with which the representatives Of the
people were surrounded, would seem to
offer an excuse, if not a Justification.
for its adoption.
However that may be, and it is per-
haps unnecessary here further to inquire
into the policy or necessity of this mea-
sure. certain it il, that it laid the foun-
da,inn of our present Indebtedness, and
to il NAV Justly be ascribed much of the
debt at pr, sent existing. For although
the amount of three per c.nt. bonds is
sued was comparative small, they re-
manned outstanding long time. with in
terest fast accommodating, ard rot until
1854 had the whole issue BEEN entirely
redeemed by c. sh payments from the
treasury, aud not until after the inleres'
had exceeded the whole amount of the
principal.
The State was compelled to defer cash
payments for other objects until bond-
bearing such ruinous rate of interest
had bern rede med and ranc He'd Thus,
mainly by this act, was forced upon u,
the scrip system, the results Of which, il
need hardly be said, after our too long
experience, are so fatal to the fnn nncial
credit # State, and proper economy in
the administration of ITS affairs.
The State, thus commencing its oper-
ations, devoid of funds or the immediat.
means for assessing and collecting reve-
nue., was compel ed to pay most extraor-
dinary prices for service performed OF
m ierial furnished. Without necessary
public buildings for the Legislature,
State ofi"ers and Courts large appro.
rriations were requisite in pa, ,ment for
off1ca ranfs Thora vas M prison for