Delaware State journal and statesman., 1867-01-04
,a-iovERNoR,s MNssAaH.

ton by The Executive to the Representative
nftheneople II Ism grateful task TO extend
10 Won such greeting to-day. We are Tree
fron, many Of the wrongs, expressions and
calamities which afiiict the people oil some
al our sister States, We have been spared
the dread effects OF the pestiience, wnieh
haa visited other sections. The lab0rs OF the
hnshandmnn have been rewarded by nbun-
liant crOns: and the continued happiness
and nrosperity of our people ought to In
snire MS with gratitude 10 the Great Ruler oil
the uniyerse. We are indebted for our free
dom from many of the grievances which
have afflicted the people of other States, 10
the wise policy adopted by those TO whom
was committed the legislation oil tine otate
during the existence OF the late disastrous
civil war. No State, occupying similar
position In the Union, has suffered less from
Inc effects Of That war than our own; nor
have the people OF any other State, thus
animated. been more secure In the enjoyment
and exercise Of their rights. These results
are mainly attributable TO the Legislative
wisdom and prudence OF our deher9l MS
sembly; and doubt not, the present Legs
lature will enter upon the discharge OF the
important duties committed 10 them " u
confidiue constituency, with the same purify
of motive, and that they will pursue thosc
duties with the same independence, patient,
persevering determination and patrlotlc pur-
pose which conducted their immediate pre-
deceasors 10 results eminently beneficial 70
the State. and which have commanded lhe
approyal and endorsement of the people:
The Constitution of the state proylues
that the Governor "shall, from Time 10 tllne,
give 10 the General Assembly information OF
affairs concerning the State, and recommend
10 their consideration such measures as ne
shall Judge expedient." In obedience TO
This provision of our Constitution, deem II
NV duty 20 call to the attention OF the
General Assembly several subjects OF vital
interest to the people OF the state. inc
circulating medium, or means aHorueu Inc
people for the transaction OF business, al,
though not under the immediate control o.
the Legislature, is, nevertheless, MS connected
with the financial interests of the state, a
subject we'll worthy their careful and ueilDef-
ate consideration
In a message, which | submitted TO the
Legislature at their January session, loOOl
fell it duty incumbent upon me. as tue
Executive of the State to invite their allen
ton to the change produced in the conul
ton Of our State Banks by an Act OF Con
arese. npproved March ., 1860, enutieu
Fan Act 10 amend an Act entitled AN Act
to provide internal revenue TO support tht
Government, to pay interest on the punl'
debit. and for other purposes. by this ac
Il ia provided, "that every National Banking
Association, State Bank, or State banklnt
Association, shall pay tax OF ten percentuh
on tho amount of notes Of any state Bank
or State Banking Association, pd'd out Dl
them aller the first day of July, elghteei
hundred and sixty.siX.n twas not dilncul
10 forsee that under this provision our STATE
Banks would not, after the first OF July
last. be in a condition 10 afford the SAM
amount OF accommodation to the people tha
they had previously done therefore, Il
tho message before referred to, submitted
your immediate predecessors the view
which then entertained upon this subject
10 that message respectfully refer you 10
my general views, wishing at present simpl
20 invite your attention to the difference be
tween the means of bank accommodate
under the system of State Banks, as II hero
tofore existed, and the National system, u
IL now exists The amount OF bank capiti
in this State, under our former system, wa
two million one hundred and iorty-tVe thol
sand dollars, which was used by the banH
in addition to the notes issued and circulate
by them, in the transaction of their bus
ness. Under State charters, the circulatlo
of our banks was not limited. Allowln
the circulation, which was often above TN
amount, only to equal the capital, Sta
Banks had the means of afIording accomm
dations to the amount of four million w
hundred and ninety thousand dollars: fh
amount, owing to the greatly enhance
value of land, and the rapid advancement
the agricultural and mechanical interests
the State, was scarcely sufficient to supp
the growing wants of the people.
Under the National system, as II at prese
exists. the amount of bank capital in u
State is one million five hundred and hlte
thousand dollars; only ninety pei, cent,
this amount however, is furnished to I
benks in currency by the Federal cover
ment,--fifteen per cent. is required 10
kept in tho vaults, which leaves only abe
seyenty.fiye per cent OF their capt.
amounting to about one million one hi
dred and thirty-six thousand dollars, as
means of accommodation a sum but lit
above one-fourth the means OF our pan
under their State charters. The Farme
Bank and the Smyrna Bank still continue
do business under State charters.-the
mer with capital Of six hundred and eigl
thousand dollars, the latter with capital
one hundred thousand dollars, amountil
together to the sum of seven hundred a
eighty thousand dollars; add this TO the 81
of one million one hundred and thirty
thousand dollars-tO the amount OF mel
of accommodation under the National s
TEN, and you have an aggregate of one
lion nine hundred and sixteen thoust
dollars, being two million three hundred
seventy four thousand less than under
State system. Whether the Directors
Stockholders OF the farmers Bank,
Bank of Smyrna, will consider 1t the
terest of these institutions to continue 10
business under their State charters, v
their circulation taxed out of existence
the operation of Federal laws, remains t
seen--the attempt TO do so may be regar
IA an experiment. 1t is greatly to be hoI
on account of the business interests of
State, and especially Of the localities
which these banks are situated, that
may not find il necessary to go into liqu
tion. This is still more desirable in
sideration OF the interests of the free sch
of the State, large amount of the fund.-
the support Of which are invested in the
meTs' Bank. II is desirable also, on
count Of large number of widows ant
phaps in this State, whose means are 81
Invested In the stock of these institute
III these banks should be compelled TO go
liquidation, the whole amount OF BAN
c6mmodation to the people Of the State
be reduced 10 an amount scarcely ii Il
above one.iourth OF that afforded by
State system This immense reductio
bank decomposition, with the pnprece
ia rapidity ofimproyement now going
the agricultural and mechanical intere
the State, will be exceedingly embarra
10 that portion of our population engag
" lhe currency during, and since the
has prevented any considerable incol
fence, as yet, from this cause but, If thu
reney shall continue to be contracted, d
been intimaied, and as a sound financial
ey would seem 10 INDICATE, as proper
necessary 10 preserve the National
until II is brought down to specie
with the whole bank capital Of the Stal
nopolized by the Federal Government