The Potter journal. [volume] (Coudersport, Pa.) 1857-1872, 1861-01-24
POLITICAL.
GOVERNORS MESSAGE
{ CdHciuded. }

BY the act passed by the last Legislat.
ure, establishing system Of free banking
in Pennsylvania, aud securing the public
against loss frou, inSolvent banks, radical
changes were made III the banking laws
Of this State. lnstead of corporations
created by special laws, voluntary associ-
atlons are authorized to transact the bust
ness of banking. without further leeisla.
tion, and, as an indispensable pre-requis-
lte to the issuing Of bauk notes for circu-
Iation as money, ample security must be
deposited with the Auditor General for
their prompt redemption. The law makes
provision, not only for The Incorporation
of new bauking associations, but enables
banking institutions already in existence
to continue their business for twenty
years after the expiration of their present
charters, upon complying Will, its provis-
ions, by Withdrawing their old cilcI lation
and giving the securities required for the
redemption Of their new issues. The
public, | am sure, will rejoice that no fur
thtr necessity exists for legislative action,
either on the subject of creating new or
rechartcring old banks, and that the time
ard attention of their representatives will
now, happily, be no longer monopolized
in the consideration Of subject hitherto
productive of so much strife and contcn-
ton, if not of positive evil.
The rapid Increase of private banks.
throughout the State, makes it eminently
right tina: they should be placed uAder
proper legislative restrictions, aud that
the large amount of capital thus employ
cd should be made to contribute its fair
proportion to the revenues of the Com
monwealtiI. Their business, in the ag-
gregate, is now believed to amount to a
sum almost, if not quite, equal to the
whole business of the regularly chartered
banks and yet it is e2tirely unrestricted.
and, with the exception of a merely NOM
inal license tax, is free from taxation.
This is unjust to every other class of our
tax paying citizens, and especially so to
the banking institutions holding charters
from the Commonwealth, for which they
have each paid q liberal bonus, and are,
in addition, subject to very large tax
on their dividends. | respectfully com
mend this subject to the attention of the
Legislature.
A high sense of my duty impels me
again 70 call the attention of the Legis-
inture to the inadequacy Of existing laws
regulating the receiving, keeping, and
disbursement OF the revenues of the State.
The public moneys are now paid directly
to the State Treasurer, who deposits them,
at his own discretion, wheucv er and wher-
ever he chooses, and pays them out IN
sums, either small or great, upon his own
unattested check exclusively. The amount
thus received, kept, aud disbursed is an
nually between three and four millions of
dollars, with balances on hand, at times,
exceeding one million of dollars while
the bond of the State Treasurer is for
only eighty thousand dollars. lis ac-
counts are settled monthly by the Audit
or General, by whom the receipts for
money paid into the Treasury are coun-
tersigned, and these are the only safe
guards provided bv law to prevent the H.
legal aud improper use of the money of
the State, by the State Treasurer
Happily, the revenues of the Common
wealth have hitherto been safely kept,
properly disbursed, and promptly account
ed for, by those IN charge of the public
treasury; but. in view of the serious de-
falcations which have occurred elsewhere;