The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1861-01-16

OF the people lis charter requires an all
nual exhibition of its receipts, expenditures,
and operations generally, and these will
doubtless be laid before you.
BY the act passed by the last Legislature,
establishing system OF free banking in
Pennsylvania, and securing the public
a2ains. loss from insolvent banks, radical
changes were made in the banking laws Of
this State Instead of corporations created
by special laws, voluntary associations are
authorized 10 transact the business of bank
ing, without further Legislation, and, as an
indispensaby prerequisite to the issuing OF
bank notes for circulation money, ample
security must be deposited with the Audi
tor General for their prompt redemption
The law makes provision. not only for the
incorporation of new banking associations,
but enables banking institutions already in
existence 10 continue their business for
20 years after the expiration OF their present
charters, upon complying with lis provisions
by Withdrawing their old circulation,
and giving The securities out required
for the redemption of their new is
sues. The public, | am sure, will rejoice
iha: no further necessity exists for legisia-
tive action, either on the subject of creating
new or rechanering old banks, and tn al the
time and attention of their representatives
will now, happily, be no longer monopolized
in the consideration OF subject hitherto
productive Of so much strife and contention,
if not of positive evil.
The rapid increase of private banks,
throughout the State, make il eminently
right that they should be placed under prop
er Legislative restrictions, and that the large
amount of capital TINS employed should be
made to contribute its fair proportion 10 the
revenues of the Common wealth. Their
business, il the aggregate, is now believed
10 amopni to a sum almost if not quite
equal TO the whole business OF the regularly
chartered banks and yet il is entirely un
restricted, and, with the exception OF
merely nominal license tax, is free from
taxation. This is unjust TO every other class of
our taxpaying citizens, and especially so 10
the banking institutions holding charters
from the Commonwealth, for which they
have each paid liberal bonus, aud are, in
addition, subject to a very large tax on their
dividends respectfully commend this
subject 10 the attention of the Legislature.
A high -ense OF duty impels me again
10 call the attention of the Legislature 10 the
inadequscy OF existing laws regulating the
receiving, keeping, any disbursement, of the
revenues OF the Stale. The public moneys
are now paid directly 10 the State Treasu-
rer, who deposits them, at his own discre-
lion, whenever and wherever he chooses,
aud pays them out in sums either small or
great, upon his own unauesled check ex-
clusively. The amount thus received KEPT,
and disbursed is annually between three or
tour millions OF dollars with balances on
hand al times exceeding one million Of
dollars while the bond OF the State Treas
urer Is for only eighty thousand dollars
His accounts are settled monthly by The
Auditor General, by whom the receipts Tor
money paid into the Treasury are counter
signed, aud these are the only safe guards
provided by the law TO prevent The illegal
and improper use of the money of the State
by the Stale Treasurer
Happily, the revenues of the Common.
wealth have hi'heuo been sa fely kept
properly disbursed, and promptly account
ed for, by those in charge of the public
treasury. but. in view of the serious defaI
cations which have occurred elsewhere, and
in other States, this fact should furnish no
reason why we ought not 10 guard against
loss in the future. Referring TO my former
annual messages, respectfully, but most
earnestly, recommend lEat provision be
made by law
FUSt-That no money shall be de posted
by the State Treasurer 10 any hank, or
elsewhere, without first requiring ample
security to be gwen 10 The Commonwealth
for the prompt repayment, of such sum as
may he deposited and lha: such securities
shall be deposited in the Office OF the Audi
tor General
SeeOnd-That all cheeks issued by The
State Treasurer, shall be countersigsed by
the Auditor General, before they are used,
and that daily accounts shall be kept oil the
moneys received. deposited and disbursed,
in the Auditor Generals office, as we'll as
in the Treasury Department.
Ihud-That condensed monthly state
ments, verified by the signatures OF the
Auditor General aud State Treasurer, shall
be published in one newspaper in PhIladei
ohia and one in Harrisburg showing the
balances in the Treasury, and where de
posted, with The particular amount OF each
deposit; and
Fomth-That the bond Of the State Treas
urer be increased to The sum of TWO hun
dred and fifty thousand dollars.
Our various charitable and reiorma:ory in
siiiulions-lhe State Lunatic Hospital, at