Year: 1868

nounclng the reduction Of the State debt,


between the annual proclamation of the


Governor and report of the State Treasurer,


arising from the fact that the sinking fund


year terminates on the first Monday in Sep


tember and the fiscal year Of the Treasury


on the 30th of November To prevent


complications of accounts aud annual expla-


nations | recommend that the termination


of the sinking fund year be made the same


as that of the Treasury


The promptitude with which citizens of
/ Pennsylvania come forward last April and


took the whole amount of the twenty three


million loan, (the bids being for upwards of


thirty three millions, )msy be considered a
most ausplclous circumstance in the hnan-


ciai history of the State, and indicates un-
bounded confidence in the good faith and


substantial credit Of the Commonwealth,
The foregoing statement Of the finances is


set forth with pleasure, IN consequence of
their fiourishing condition.


In addition thereto, the balance in favor
of the General Government for Pennsylva


MIA S quota Of the direct tax levied in the


several States for war purposes and for cash
! from the United States, amounting, in all
/ to nearly two millions Of dollars, has been
settled in full by the allowance of claims for
extraordinary expenses incurred by the
/ State during the var


| In consequence of the lapse of time since
/ the remaining claims were contracted, the
want of sufficient vouchers and explana-
tions, and the difficulty of finding the par
| ties, some of them being dead by whom
| they should be made, render their settle
ment difficult, and IN many instances, doubt
! ful, the accomplishment Of which will, how
| ever, be vigorously pursued aud the results
| laid before the Legislature.


Passing from this general review of the
| finances of the State, cannot permit some
Of the most prominent ideas connected with
them to pass unnotced, because they clearly
| indicate the path of duty in the discharge
of the Executive trust. Ii is deemed proper
| to call your attention to the fact that during
the entire year a very large sum of money is
in the keeping Of the State Treasurer. This
sum has not at any time for years been less
| than a million of dollars and at present
amounts to considerably over four Millions
of dollars. That it is unnecessary that
the greater portion of this money should be
kept in the Treasury to meet the ordi-
nary demands upon it is obvious; and that
1t should be withdrawn from circulation is
/ certainly detriment to the business of the
community a contraction to the amount
OF several millions, as ut present, cannot
fail to make Its impression upon those en-
gagged IN mercantile, manufacturing, agri-
cultural, mining and all other kinds of en-
| ployments. This money, | am informed
| upon good authority, can be loaned, with
ample security for It's repayment when
needed, for certain specified periods, at a
reasonable rate of interest, and the proceeds
placed in the Treasury for the benefit of the
State, which would not only be beneficial to
the tax payers, by increasing the public rev.
enue, but also enlarge the accommodations
| for business purposes. If this plan were
adopted, the Withdrawal of the circulating
medium, by the payment of taxes, would
be so brief that it would not materially eff
feet the public welfare The fund thus ae-
quired could be added to the sinking fund,
and would materially aid in the reduction of
the Stat debt.


A glance at the condition of the Treasury
viii show that at least four millions of dol
lars might now be loaned and at four per
cent would realize the handsome sum of
$I60, 600 per annum. Or nearly the whole
amount of the balance now in the Treasury
might be rendered productive by being in
vested in the bonds of the State, bearing six
per cent. interest, even though purchased
at premium. Or, it might be invested in
United States interest bearing bonds which
would be available at any moment neces-
sity might arise for tie use Of the funds. If
that amount were exchanged at par for
United States ten-forty bonds, bearing five
per cent. interest in gold, the product would
be at the rate of $500, 900 per annum, In
gold, or, at the present value Of gold, $780,
900 in currency. Besides, the funds would
not become deprecated and unavailable
by long continuance IN the Treasury. a
law for this purpose could be passed, speci-
tying he method by which the unneeded
money of the Treasury may be loaned, au-
thorizing and empowering the State Treas
urer, aud such others as you may designate,
to execute, or carry out, its provisions.


Your attention il also invited to the fact
that the salary of the State Treasurer, now
only seventeen hundred dollars, is entirely
disproportioled to the duties and RESPONSE
bilIties of that officer, and that the amount
of the bond, eighty thousand dollars, given
by him to the State, is equivalent to no secu-
rity at all, under the present system of plac-
ing, Internationally, the entire funds of
the State in his hands. The only security
is the ineorruptible hopesty and integrity
of the Treasurer. Suppose that when
there is in his keeping millions of dollars the
incumbent Of that office should be tempted
to become a defaulter! How easily could
he secure to his bondsmen the amount for
which they would legally be liable to the
State and appropriate the balance to him.
selfl For years, it seems to me, the Treas
ury of the State has stood, as it were, upon
a volcano Examples all around US show
the fallibility of man, and how frequently
and easily he is sweryed from the path of
rectitude and honor Even many Of those
in the most elevated positions and enjoying
the highest confidence of the public, are of
ten found to yield to the temptations that
surround them. The desire for the rapid
accumulation of wealth; the thousands of
schemes presented 20 excite the cUpidity of
human nature, at the looseness of public
morals, engendered by the escape Of the
guilty from punishment. have so demoral-
lied public sentiment that it may be consid |
cred a wonder almost a mlracle--tbat |
Pennsylvania has so long escaped from the
calamity that might at any time have hap |
pened, or that may hereafter happen, by |
the robbery Of her Treasury, and render |
the suspension of the payment of the inter- |
est upon the State debt, for time, iney-
table


In the performance Of my duty, have |
fOreWarned the Legislature of danger as |
respects her finances, Of no common magni-
tude Itremains for it to determine Bheth-
er this danger shall be averted by prompt |
and efficient legislation and the Treasury /
guarded against the occurrence of so great a
calamity.


EDUCATION.


The report of the Superintendent of the