American citizen. [volume] (Butler, Butler County, Pa.) 1863-1872, 1864-01-13

act of that year, intended to provide
against loss to its creditors by reason of
such suspensions. An exigency like the
present could not have been foreseen by
the Legislature, and it is to be inferred
therefore, that they could not have intend
to provide for it.
We derive our system of public loans
from Europe, and the true extent of our
obligation is to be rscertained by referring
to the known established practice of Eu-
ropean governments prior to the dates
when our loans were effected. | mean of
course such Of those governments as were
held to have maintained their national
credit
1t is believed to have been the uniform
practice Of such governments to pay their
interest in paper currency, however de-
preciated during legalized suspension of
specie payments. An observable instance
of this is afforded by the course of the
British Government, which during twenty
FIVE years, from 1857 to 1922, during
which the bank was prohibited by law
from paying out coin for any purpose,
paid the interest on its public debts in
bank notes, which during a great part of
that time ware at heavy discount, some
times amounting to 30 per cent or therea-
bout. Their necessities were not greater
than ours are now.
Among ourselves, at the present time,
Massachusetts, Whose debt is believed to
be very smalD pays the interest in coin.
Ohio and Indiana pay in currency. In
New York it is not known what will be
dore. Her Legislature, by concurrent
resolution, ordered the interest to be paid
in coin to foreign stockholders, in April
last.
At the present rate of premium on gold,
the sum necessary to pay on an amount
sufficient to discharge the annual interest
on the State debt would be more than
81 100000, and to meet this, additional
taxation to that extent would be unayoid-
able. The demands on the Treasury for
other necessary purposes must probably be
such as to render it imprudent to throw
any part of this expenditure on the exist
ing surplus To borrow money from year
to year to pay the interest on past loans
would, of course, be wholly admissible
To leave the act of 1862 in force, and at
tempt to throw the payment of this large
premium annually on the banks, would be
not only fagrantly unjust, but quite i'm
practicable | recommend the whole sub
iect to the careful and immediate consid-
Grafton of the Legislature. Some legis-
lation ought to be had on it before the
close of the present month. In my opin-
ion the Commonwealth will have fulfilled
her obligation by providing for the pay
ment of her interest in the currency of
the Government. Ifthe Legislature should
think fit to continue to pay it in coin, it
will be their duty to levy forthwith the
heavy taxes necessary for that purpose
l must in passing observe that the plan
adopted by one of the States of paying
coin to foreign, and currency to domestic
loan holders, appears to me to be wholly
unwise, and founded on no legitimate
principle.
At the close of the last session, nineteen
bills renewing the charters of certain banks
for another period of five years were pre-
sented to me- OF these | have (tor rea-
sons which will be hereafter communica-
ted withheld my signature from one, and
approved the remainder, | have been led
to sign them by the considerations that
the banks of the Commonwealth pay a
large revenue which the State can i'll af-
ford to lose, and that in the present con-
dition of the country it wouldbe impolitic
to drive so much capital out Of active use
or force it into new employments.
II the National Banking system affords
sufficient inducements, capital will volun-
tarily take that direction. 1t is proper to
observe that the charters of most Of the
banks in question expire at an early peri
cd, while in consequence of the invasion
of the State, during the last summer, they
could not have been reasonably expected
to give the necessary notice Of renewed
applications for. re-charter.
/ recommend an extension of the time
during which the banks are now relieved
from penalties for not paying their obli-
cations in coin.
SALARIES OF PUBLIC OFFICERS.
The increased expenses of living in
vite attention to the salaries Of our pub
lie officers. Those of the Secretary Of the
Common wealth, Auditor General and
State Treasurer, and of the Clerks in
their employment are, in my opinion, toe
low, especially as the exigencies Of the
times have greatly enhanced the labor
and responsibilities of all, and in the case
of the heads of those departments, enforce
a constant attendance at Harrisburg, which
was not formerly required.
BOARD OF MILITARY CLAIMS.
Under the.Act of 10th April, 1862
and its supplement passed 22d April
1868, the Adjutant General, Quartermas
ter General and Commissary General have
been acting as the Board of Military
Claims. They have, up to this time, ap
proved claims to the amount Of Sl66, ,4ls
81 and others hav ealready ybeen presented t.
the further amount of $685., ,l20 29,which
have not yet been acted on.
Under the Act of 22d April, 1868
(P. L., 529,) the Court of Common Pleas
appointed three appraisers to ascertain the
damage done in the counties on the South
ern border by the militia called into ser
vice in September, 1862, by the Ander