The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1862-01-23


Available balance of the gener-
al fund, November 80, 1861, $554,59S 81
By comparing the receipts into the gen.
eral fund for the last year, With the re-
ceipts for the preceding year, it will be
seen there is falling of or deficiency of
S46l Gil IA.
This deficiency is nainly on the follow.
ing items, viz:
Tax on bank dividends.
Tax on real and personal estate.
Interest on railroad and canal bonds.
The deficiency on account of taxes is
to be attributed to financial embarrass-
ments and great depression of business,
caused by the war in which our Govern
ment is engaged.
On the 18th of April last, the Legisla-
ture by "An Act for the better organiza-
ton OF the Militia of the Commonwealth" "
authorized the Governor to negotiate TEN
porary loans to the amount of FIVE hon.
dred thousand dollars to carry out the
provisions of that act. Under this act
temporary loans we're obtained from the
banks in Philadelphia to the amount OF
s475,0OO. On the 18th of May follow
ing, another act was passed, "to create a
loan and to provide for arming the State" "
By the provisions of this act the Governor
and State Treasurer were authorized "to
borrow on the faith of the Commonwealth
any sum not exceeding three millions, OF
dollars, and to issue the bonds of the
Commonwealth for the same at six per
centum interest per annum, and reimbur.
sable at any time after the expiration Of
ten years from their date: Provided
That no certificate should be pegotioatsd
at less than its par value" There being
doubt upon the minds of some of the mem
bers Of the Legislature, as also of the of.
fcers of the State government, whether
six per cent loan could at that time be
negotiated at par. the Governor was au
thorized By the sixth section of the Act o.
10th of May, 'for the payment of mem
bers, &c., to advertise for proposals for the
loan or any part thereof, and 0IIot tile loan
to The highest and best 6idderS" On ex
animation of these two acts by gentlemen
conversant With financial 10 matters. as vel
as BY the Hon. Attorney General of tbt
Commonwealth, it was decided that they
did not sonfer any power to negotiate the
loan at less than it's par value. In this
situation Of things, with a civil war exist
ing against the Government, its very ex
istence, as we'll as the capital of the ma
ton threatened. and Government sizes
under the panic then existing, selling IL
the market at Is per cent below par. i
seemed almost useless to undertake the
nepotistion of our State loan at its pal
value. In this emergency, by the con
sent Of the Governor, called upon two o
the prominent Banking Houses of Phila
adelphia, Messrs. Drexel, and Jay Cooke
& Co., and after consultation with them
they agreed, with the assistance OF thi
Department, to undertake the negotiation
even in the face of all the difficulties sur
rounding it; and to the credit of Pennsyl
vania be it said, that 10 this dark hou
of our country's trial, and in the midst
an excitement such as the country hat
never before known, with the credit o
the General Government rapidly falling
in the market as it then was, the citizen
and corporate Institutions of our Com
mopwe alth most nobly responded to To
fervent and patriotic appeal OF those gen