The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1857-12-08
GOVERNORS MESSAGE.
III st Snatc a'ii Ho,aS, Of Dtltgatcs of the Genera
lsstr. In If shs G,,u .r.alccaL.h I.-..r.r.u.

IL III S,''ate ani House Of D,kgates of The General
-4sstrn5!y Qf the Commonwealth Of Virginia:
GsvrLsSs,-I address You, in discharge of the
dugy imposed by the constitution, TO "communi.
cate 70 you the condition of the commonwealth
and to recommend to your consideration such
measures ~ may deem expedient
When the pestilence, two years ago, was sent
10 portion of our people, from the morning
even - the time appointed the DESTROYING angel
as in the days o. Araunsh, ''stood by the thresh.
iuS place" and it was commanded, lit is enough.
stsy now thine hsnd." And since then there has
been no famine. nor blasting nor naildew:" the
earth has given forth more than its abundance
and. though war. have shaken the world. we have
been eft al peace, to gather in our bouatifnl har-
vests mo enemy has besieged Us in the land OF
our cities" ami st no time have people ever
been moro healthy. more happy, more plentiful
more sbounding in svery element Of social comfort
aud luxury than they are at the present moment
Governments may be troubled states may be EN-
barrassei in their finances, corporations NAV be
suspenainE, and firms and partnerships in trade
BE falling bat our people. individually, were
never stronger, stauucher; safer in stste of sound
and permsnent prosperity. And this is Ms it
sh )uld be- for states and corporations and trades
cannot long suffer, II the individual people are
fortified and protected and are thus enabled to
afford remedy and relief That il inst our case
most tartunstsly. at this juncture. when com,
rnercisI crisis has threatened to crush the pros
psrity of the nation.
That crisis has been long coming aud ample
time was given for the warning ana watching OF
it. approach. Yet many merchants have fallen
before its blasts our banks have been OBLIGED 10
close their doors IN ibs face Of the storm state
stocks have fallen prostTate before 1t. and prices
with every thing abundant and money scarce are
lowering towards minimum level. 1t is well to
look at o. - causes and at its mode of ope-
raIiou, and TO sose Of its results and effects, in
order to derive lessons at once salutary for the f
tUrs aud relieving for the present.
.t,Hlf Ian md t.aF tly lar
in trade IN consumption, in prices, in Currebcy
and Ia speculation, has occurred. A state of over
stimulation has made us reel and stagger aad near
ly fall like drunken men. The primary and most
potent cause Of this aud condition is the tD9-
m>ns. htcretsnt production ofgo!d.
TAree Hew mines OF the word-Caifornia Aus
trali4, SIberia-sere discovered and opened almost
st once. Their extent and richness are Yet un-
Known. Their operations have produced millions
upon millions Of precious metals. and they still
seem - be eXhaustiess. This led nearly all to
suppose that gold was to be immediately and in-
mcusey deprecated In value, and 10 ssfficient ee-
tmste made OF the immense progress too in
the arts of lie and in the powers of production of
every thing else besides gold. No allowance was
made for the application Of steam, of chemistry, cf
improved machinery, and of concentrated ma
nures. These had generated human operations
human capacities, tar beyond any creation of mar
in past history. The demand tor gold now was
not merely TO supply the attenuated and refined
extravagSnce OF the pigmies of luxury but giants
CJ tIJ0T nave grown up. Win HuSe machines IN
their hands, and their supply and support are
great, beyond any thiLg known in mans expert
ence. Their supply and support must be in pro-
portion to their power of production. Steamers,
ships, cars, canals, railroads, mountain tunnels,
mammoth machines, continents OF improved fields
Of aEriCulture-not mere laces and fashions and
squIpaSes of hYing-requlred more and more gold
than the world ever required before. The increased
supply Of gold, then, ought not to have been eI-
pected to enhance the price Of every thing so
Fpueh- rather gold fall muCb in
its own value, inasmuch a. the demands of produc-
ton and powers of production OF every thing else
had increased in proportion.
Again-The incfease Of the production of gold
caused an immensely greater amount of it to be
employed in making the ordinary utensils of life.
This lessened its proportion for currency.
Again--Iust at the moment when the production
of gold was so increased il all called for by the
extraordinary wants OF the principal powers of Eu-
rope. Their immense colonial schemes required
vast expenditures, and added to these wants, war
broke out between Russia, England and France, in
volying all the European and Asiaiic powers; and
the revolution in India has followed Immediately
after the peace Of the Crimea. Astruggle has been
going on for years between the banks of England
and of France, each grasping ut the specie, and
striving to hold the barometer of exchange" for
the world, whilst the governments of Russia, Aus
tria. Prussia and all the other powers of Europe,
collecting their resources and summoning their
means 10 prepare for any conflicts, civil or warke
which may arise England and Franco have the
power purchase up Tue SOIu ds as III pro-
duced, and they have bidden the most of it away
from Ii more wanting in Europe than it
was wanting here; it has gons there, ont of the
reach of 0uI wants now and to get it back premi.
um must be paid by US far greater than that which
paid 10 take it away. We ought not, then. TO
have expected 80 large amount of specie to re-
main in our country, and TO become enlarged
basis for Increase Oi banking capital and circula
tion.
Yet, the popular belief the general delusion was
hat tn haV n hmm dan rF FrrfsfA
that il TO be got for digging without limit aud
that II Was TO be drug If not go begging in the
market. II was to become merchandise, and not re-
main and be any longer money.
The consequence of this deusion should have
been, apparently, to lessen the amount and issue OF
p1psr currency. But, on the contrary, the demand
for a circulation was greater than ever; and the
gold not being here To supply the currency. rs
millions only being left in the public repositories o.
the country, there was multiplication OF banks, q
vast increase OF banking capital and an inflated pa
per circulation of 2ii millions. The number o.
banks increased from C7, in ISi3, the last specie
suspension, to l.4i6 by the lst Of January, 1867
The amount Of banking capital now, ind dependent o.
prvat. banking lie S370o34 $50 and the total ba K
assets. ipciuiing capital. was ,324ol34 452 exclu
siFe OF capital Was 1858, l7STtt; the amount of to
tal banking liabilities $522, ,62l ,351-leaying
total surplus Of sf3D b57 4Oy exclusive Of capital
and the aggregate Of nas<tate liatiittses, of cir
cuiatinn. GepOsits aud cues 10 other banks. was
$5J%A045o1; aud the aggregate Of RtRtedite Ri>aga
te Of specie specie funds notes Of other banks and
sums due from other banks, was but $ls7 ,404 SOP
leaving d,tctcscy Gf immediate medas. on the lst
January 1871, VI 1925 39g SIS Such was the degree
OF Imitation aud deficiency Of immediate means the
the lst January last.
Another reason for this excessive imitation OF our
currency, is the speculation in the Northwestern
territory Of the United States, brought on by the
corfuptIng grants to internal improvements by the
general government. For years past the federal
government has been giving alternate sections oi
the pablIc lands 10 the new states to construct
railroads. These grants were turned over TO the
nes stste corporations of banks, and railroad CON-
panies; aud there corporations have multiplied
ana issueu and speculated to au extent paraiieied
only the fazoo schemes OF old.
For years the congress Of the United States, with
out restraint, without debate or question even il
either house comparatively, has been going on in
career OF extravagsat appropriations 10 internal
improvement, and these lave been partial psrticu
lariy 70 the Dorthwest. Whyf 1t is not pertinent
here 10 inquire, but such il the fact. Whilst
watehtul Jealousy has guarded other branches o
what used to be denounced as the corrupting Anne
rican system OF federalism, this branch OF IL has
been allowed quietly TO grow into policy which
all have directly indirectly silently express
couHtenaueed and encouraged. states northwes
Of the Ohio have had net work Of public improve
mrAts completed Tor them. individuals have mad.
miiiionsfe fortunes. Corporations have bsnkes
upon stocks, and issaed paper money. The liant
Offices have been oysrrun by specuIstors. Thoagf
circulation thsrs has been excessively multiplied
yet the demand for money has bsen 90 increased n
se command shsfs from 10 70 80 per cent psr "a
Esra osf sspeta sns eef srsnsgs hers aaas shstl