MESSAGE NO. 1, OF HIS EXCELLENCY GOVERNOR MANNING, TO THE LEGISLATURE OF SOUTH CAROLINA. AT THE BhM&Jf X.'..' ■ ■ ■ ■ SESSION COMMENCING NOV. 27, 1854. COLUMBIA, S. C.: R. W. GIEBES & CO., STATE PRINTERS. 1854.' MESSAGE NO. I. Gentlemen of the Senate. and House of Representatives : Under the uniform action of our system of government, without strife or confusion, new members to the General Assembly have been chosen, to represent the latest views of the people of this Commonwealth, and otherwise to provide for their happiness and welfare. Although this event is of regular recurrence, it is, nevertheless, one full of interest both to you and your constituents. In a country like this, so rapidly growing, and developing each day new events and fresh resources, the legislative mind may well be anxious lest, by the omission of some act—the neglect of some duty—the progressive strides of the State towards wealth and power may, for a space, be retarded. A strong inclination to progress is a characteristic of the race which you in part represent, and is, perhaps, the secret of Anglo-American success and ascendancy. Its spirit prevails over the continent, and is continually hurrying us into new positions of theory and of government. It pervades, to a greater or less extent, every State in the American Union, and is incorporated into its laws, religion, industry and politics. But, on the other hand, all well-regulated understandings will regard, with something like anxiety, that restless desire for change in fundamen¬ tal principles of government, and strong inclination to specific legislation, as encouraging, to an undue extent, the tendencies of popular institutions to run into extremes of opinion and action, the end of which is license without liberty, and law without the assurance of order. Whilst the State for which you legislate can scarcely be said to have kept pace with others in this rapid march of improvement, it may be claimed for it that it has more surely attained those qualities of govern¬ ment which are most likely to ensure the greatest amount of real happiness to the citizen—maintained a higher degree of social order—preserved a more even balance of power among the co-ordinate branches of govern¬ ment—and been less controlled by cupidity and ambition, those certain forerunners of national degeneracy. Well, then, may you take pride in 4 your State. The feeling is always admissible, but especially so when you live under a Constitution and laws conceived injustice, and administered with purity—under a Legislature independent in its views, and capable and rapid in the discharge of its functions—under Executives content with their limited prerogatives—under a religion without the heterodoxies of these present days—and under a sound, just and high-toned public sentiment. I cannot, therefore, recommend to you, gentlemen, too strongly to watch over with solicitude this noble political organization, and to pre¬ serve it from those changes and innovations which tend to weaken, and eventually to destroy, the happy equilibrium which exists; and I fer¬ vently hope that, far down in the vista of time, when all memorials of us are lost, except those which may remain among its archives, a gracious Providence will preserve this State Government, in all its usefulness and beauty to remote posterity, fresh and glorious in its immortal youth. The year, which is now nearly past, has been one of great calamity throughout the world. War and pestilence, disasters on the ocean, com¬ mercial anxieties and distress, with gales and drought materially shortening the grain and other crops, are some of the melancholy incidents which have marked it. Nor have the people of this State escaped the common misfortunes. The metropolis and some of the lesser towns and portions of the country have been visited by a fatal fever, and other diseases almost as destructive to life, which for a time have arrested all business, destroyed a number of valuable lives, and invested their communities with a pro¬ found gloom. But few families are without some sorrowful event to call to their recollection the past summer as a period of severe trial and mourning. Still we have abundant cause for gratitude to God, for arrest¬ ing the ravages of disease, and for restoring both the city and country to their usual health. The aggregate income of the State from agricultural sources for the present year, is likely to be materially diminished. The yield of short cotton to the planters, notwithstanding a most favorable season for gathering and preparing it for market, will scarcely be equal to the crop of last year, whilst the long cotton and rice on the seaboard have been very much injured generally, and in some instances entirely destroyed, by the equinoctial storms. These numerous circumstances, taken into con¬ nection with the stringency in the money market, and the consequent check given to commerce and trade, induce a strong necessity for economy both in disbursement of money from the Treasury, and in private expendi¬ tures. Fortunately, owing to the previous comparative freedom from debt in the State, the losses both in business and agriculture will only work a temporary injury, which ordinary prudence cannot fail soon to remedy. 5 For an abstract of tbe condition of the finances of the State, I beg to refer you to my last Annual Message. The nett profits of the Bank of the State for the present fiscal year amount to the sum of two hundred and ninety-five thousand dollars, ($.295,000,) against three hundred and thirty thousand dollars ($3d0,000) the nett profits of 1853, thus showing a diminution in the income of the State from that source to the extent of thirty-five thousand dollars, ($35,000.) It was to have been anticipated that the profits of the Bank for the present year would fall short of that of the year previous. The great stringency in the money market, which has extended over the whole country, necessarily curtailed its operations. I herewith have the honor to lay before you the Annual Statement of the Bank to the 1st of October, 1854, showing total funds to the amount of seven millions three hundred and eight thousand six hundred and five dollars and fifty cents, ($7,308,605.50.) During the year, twenty-five thousand dollars ($25,000) have been applied to the reduction of the State debt. By comparing the balance in the Treasury on the 1st of October, 1853, with that of a corresponding period during the year 1854, it will be per¬ ceived that there is a falling off of eighty-one thousand four hundred and sixty-three dollars and five cents, ($81,463.05.) The income derived for several years from stock in the South Carolina Railroad Company will be withdrawn from the Treasury, in consequence of its exchange for stock in other Railroad Companies. On the other hand, there is reason to sup¬ pose that the cash receipts from taxes will considerably exceed those of the last year. In the Upper Division alone, the receipts from this source exceed those of the year previous by the sum of eighteen thousand five hundred and thirty-eight dollars and seventy-two cents, ($18,538.72.) In June last, I received from Mr. Anthony Hyde, of Washington, a Treasury draft for seventeen thousand seven hundred and eighty-six dol¬ lars and five cents, ($17,786.05,) which I have placed in the Bank to the credit of the State. This is a portion of the sum appropriated by the last Congress in satisfaction of a claim made by this State for losses sus¬ tained in equipping a regiment of volunteers, in 1836, for the Florida war. It appears that there is the further sum of fifteen hundred and eighty- three dollars ($1583) still due under the appropriation. A charge of ten per cent, for commissions was made by Mr. Hyde for collection, but I did not conceive myself authorized to pay it without authority from the Legislature. Until this question is determined by you, I have suffered the fifteen hundred and eighty-three dollars ($1583) above mentioned to remain in the United States Treasury, to meet such com¬ pensation as you may allow. 6 I herewith lay before you both Mr. Hyde's report upon the case and other papers connected therewith. At the last annual meeting of the Legislature, in connection with the Comptroller General, I was directed, by Act to issue bonds of the State to the amount of two hundred and fifty thousand dollars, ($250,000,) for the purpose of forwarding the construction of the new State Capitol. The bonds were accordingly prepared under the immediate auspices of the President of the Bank, were duly executed, and offered in the market for sale. But, owing to monetary difficulties, there was little or no demand for such securities, and but a portion of them were disposed of. Under these circumstances, after consultation with the President of the Bank, it was deemed advisable for him to proceed to New York, and offer them in that market. There he found similar difficulties, somewhat increased from the fact that the bonds were made payable at the State Treasury, and not in New York, as was preferred. He nevertheless effected a sale to the amount of - $130,000 00 Upon which a premium was received nett of - 3,393 64 There remain unsold bonds to the amount of - - 120,000 00 ' Of these there are lodged in the Bank of the State - 20,000 00 And in the Bank of the Republic, New York - - 100,000 00 In connection with this statement of our financial affairs, I desire, with great deference, to submit a few suggestions with regard to the present condition of banking operations, their effect upon the money market, and upon the people and business of the State. The Legislature, two years since, acting under what appeared then to be a general demand for increased banking facilities, established a number of new Banks, thereby enlarging the banking capital to the extent of two millions, six hundred and eighty-five thousand four hundred and seventy- five dollars, ($2,685,475.) The impression seemed generally to prevail that this step would make money more abundant, and that the increased want of it, both for commerce and internal transactions, would be amply met. Those who dealt in stocks, and in foreign and domestic exchange, joined the agricultural interests in the demand; and the result, as has been clearly demonstrated by experience, has disappointed the expectations of both. Instead of increased discounts by notes in a period of unusual difficulty in money affairs, and an increased amount of money in circulation, the dis¬ counts are less than they were previous to the establishment of the new- Banks, and the want of money greater than at any period since the com¬ mercial disasters of 1837. Both those who deal in stocks and exchange, and those engaged in agriculture, are alike clamorous for some legislation to remedy existing pecuniary evils. 7 It is proper to inquire into the causes which have led to these results, and to endeavor to suggest a remedy, which I shall do as briefly as possible. It is well known that previous to the creation of the new Banks, at least one-third of the capital and credit of the old Banks was employed beyond the limits of the State, which would go to show that even then there was too much Banking Capital. With the recent increase of it, the amount sent abroad is greatly enlarged, and perhaps is equal to half of all the Banking Capital in the State, and whilst Stockholders are benefitted by this mode of operation, the wants of the great mass of the community are neglected. It is certainly to be expected, that the money of the Banks will be employed in those places from which the largest per centage in busi¬ ness is to be derived, and that where the interest at home is restricted to six per cent., capital will go where ten and fifteen per cent is to be had. The utter failure of banking in Mississippi, Alabama, and Florida, opened a new. and extensive field for the employment of Bank Capital; and the reputation of the banks of South Carolina, and the credit which is attached to their issues in those States, together with the large per centage to be derived there, were a strong temptation to our Banks to send their means abroad. The result of their operations was evidenced by largely increased dividends, which for several years reached six and eight per cent, per annum, and more recently went as high as ten to fifteen per cent. They invest large amounts in those States, in the purchase of bills payable in New Orleans, Mobile, and other Western cities, and when they arrive atmaturity, the funds are re-invested in bills payable at the North or in Europe. These funds centre chiefly in New York, to the extent of their circulation in the West, where they draw interest, or, as is generally the case, are invested in Southern paper. All these changes afford a large per centage on the money in use, and it is, therefore, not surprising that the citizen cannot borrow money at home from Banks at the rate of interest fixed by law. It is in this way that in the past eight months it is supposed that the aggregate amount of exchange operations more than equals loans on notes, and that the sum of notes discounted is actually less than it was before the new Banks were established. During a period that those States already named banked for themselves, and fur¬ nished a supply of paper currency to their own citizens, the Banks of this State were' paying only five to seven per cent per annum in dividends, thus showing conclusively that a very large portion of our banking capital was, and is, diverted from the uses of our own people to supply the financial necessities of the people of other States. I shall not here refer to the hazards in banking, and other incidental objections to such a system, where the field of financial operations is so remote and uncertain. My 8 object is to state such facts as will form the basis of legislation to remedy former errors, satisfy the public wants, and correct tbe present evil as far as it may be done with safety. But upon this head a great difficulty pre¬ sents itself as to a mode which will not embarrass the community, affect the value of property, or interfere with public credit. Undoubtedly the power rests with the Legislature to alter or amend Bank Charters. They are no longer independent as formerly, but are in all respects subject to your revision. To use that power, however, unless for the strongest reasons, is always questionable, and sometimes danger¬ ous, as evinced by the financial history of other States, particularly in the West. The law regulating Banks in Massachusetts was intended to be an effectual check upon the abuses practised by them. That law restricts them to operations at their own counters ; denying them the privilege of establishing agencies abroad. If such a rule is never evaded, it may be attributed rather to the honesty of officers than to any want of financial skill. An evasion of the law is rendered easy by making loans to agents, who shall stipulate to circulate the issues of Banks paying a fixed sum for their use; obligating themselves to make returns at the time agreed upon, and stipulating also for the description of assets to be received by the Banks in return. It is of more than doubtful policy to pass any law which can be so easily rendered nugatory. Besides, if complied with, manifest injury would result to a portion of such institutions. Banks in this State usually transact a large amount of their business through agents, and are dependent upon them for a supply of Northern exchange, which can only be obtained in the seaports. To prohibit the use of agents to the country Banks would seriously embarrass them. Without exchange, they could not supply the wants of the interior, and their issues would, therefore, be depreciated in the seaports; thus giving to Banks there located a great advantage in business. In questions of so much complexity as those relating to banking, it is extremely difficult to point out a remedy , for errors which exist in the system. In the case, however, which I have presented to you, the evils will, in part, effect their own cure. When Alabama shall have increased her private Banks, and thus supply the monied wants of her own people, the necessity for which she now feels, and is beginning to remedy,. Mis¬ sissippi and Florida will follow the example. In that event, the field of operation for the Banks of this State will be circumscribed, and Banking, having its business diverted from those channels, will retain in the State a greater abundance of capital. There is another measure which is a still more effectual remedy for the scarcity of money now existing, notwithstanding the excess of Banking 9 Capital in tlie State, which is the abolishment of the usury laws, in order to bring private and foreign capital into competition with the Banks. Pro¬ vided laws do not make investments insecure, the deficiency of money in one place is certain to be supplied from another, where, as it becomes abundant, the rates of interest are necessarily lowered. There has always existed a prejudice against usury ; and it certainly was to be condemned where the co*n of a country was the only circulating medium, and money was hoarded for loan at exorbitant rates of interest; thereby placing it in the power of such individuals as possessed it, to a certain extent to hold his neighbors' property at his mercy. But since that period, now that the commerce of the world is carried on by the credit system; and bills of exchange, and promises to pay, to a large extent, are the circulating medium, money becomes valuable in proportion as the exigencies or prosperity of trade make it so. Money, like every¬ thing else, ought to have a,relative, not a fixed value. In this State the Usury laws are rarely enforced, and in numberless instances are altogether disregarded. Large sums of money are constantly being invested at exorbitant rates of interest. In New York the paper of citizens of the State is frequently purchased at a very large discount. It often happens that the best is thus forced off by the impossibility of pro¬ curing money at home, with the necessity of obtaining it either to meet stringent present engagements, or to operate in profitable investment. The discussion of this measure is not a new one. Its adoption is urged with great force in many of the States of the Union, and the change is destined eventually to be made. If it be effected in neighboring States, we cannot avoid it here. England, that wise nation, and especially wise in h6r commercial policy, has already abolished her Usury laws, gradually, to be sure, in the first instance only affecting her commercial transactions; but the change is now complete, and is applied to all her business. Without opposition to any of the institutions or vested interests of the State, I have placed this subject before you for consideration. I have no desire to urge it beyond that point, and leave the question to be decided by your intelligence and judgment. I herewith submit to you a report from the Comptroller General, touch¬ ing the state of the records of his office, which is worthy of your con¬ sideration. The condition of the papers and docurnents referred to, seem to require some attention and labor for their more complete preservation ; and the terms upon which he proposes to have them properly arranged, indexed, and copied, where it is necessary, appear to be moderate and just. Upon referring to the Revolutionary and Colonial records, I find seve¬ ral chasms which should be filled up, in order to make them perfect. I 10 think it advisable, therefore, to authorize the Governor to procure such copies of the missing papers as can doubtless be obtained from the English Archives. I beg leave to lay before you the reports and accompanying papers upon the subject of the new State Capitol. They will be found to be full and explicit. In my last Annual Message. I had the honor to state to the Legislature that the new State Capitol was in proper progress of construction— that the auspices under which the work was carried on were satisfactory—that the work itself was executed in a manner at once elegant and substantial—and that a building would be erected upon the foundations then laid, which would reflect credit upon the taste of the State, and be in every way worthy of her dignity. Since that time, however, I have cause to authorize a radical change of my opinion upon this subject^, Soon after the adjournment of the Legislature, the basement'of the north wing was so far completed as to warrant an order from me for the removal of all the papers belonging to the officers of the several depart^' ments of the State Government into the new apartments, erected for them in that portion of the building. I deemed this step necessary for the protection of the Records and Archives from danger of fire and-other destructive causes, during the removal of the old capitol to its present site. Soon after this event, and during the past spring, the Commissioners appointed by the Legislature to superintend the construction of the new Halls of Legislation, became concerned about certain indications of faulty work in the edifice. Prompt enquiries were instituted. The services of an architect, of acknowledged ability and large professional practice, were called into requisition. At first, the imperfections of the work were not thought to be of a serious character, and that by taking down and reconstructing an inconsiderable portion of it, all defects would be remedied, without loss to the State. In the meantime, the original Architect was superseded in his employment, by placing Mr. Walker in immediate charge of construction, and by engaging the services of Mr. John R. Niernsee, of Baltimore, as the Consulting Architect. To be able to obtain the aid of these gentlemen was deemed by the Commission a fortunate event, as, in addition to their valuable services, the rate of compensation to them per annum, together with the salary paid to Mr. Kay, the Assistant Architect, would not exceed the sum which the late Architect would have received, had no cause occurred to retard the progress of the work. Scarcely had the superintendence of the building been reorganized, when other defects, of a more serious character were discovered, not only in the walls, but in the very foundation, commencing with the laying 11 of the corner stone itself; and a reasonable doubt existed in the minds both of the Commissioners and Architects, if the defect in the groined arches and the walls of the basement story could be remedied, whether the foundations would bear the great weight which they would be re¬ quired to sustain. The Commisioners believed that no doubt upon this subject-should be suffered to exist, and they accordingly, after mature deliberation and consultation with the Architects, gave the order for taking up all the work which to that period had been done upon the edifice. This order has been carried into effect. The material which is available in the construction of another building has been carefully re¬ moved, and placed where it can be used for that purpose, as the Legislature may hereafter direct, i The loss which the State will for the present sustain by this failure in the erection of the new Halls of Legislation, has been clearly ascertained, —and will' appear in the following statement. The particular items are contained in the accompanying report of Mr. Walker, the Constructing -.Architect. The sums advanced from time to time by the State for the erection of Fire Proof Buildings, and subsequently for a new State Capitol, amount ,to ------- $315,000 00 Total amount expended on building - 223,213 12 Value of property and material on hand ready for future use ------- 150,945 37 Lost in workmanship, material, &c. - 72,267 75 Balance in State bonds and cash on hand - - 91,787 00 In this amount expended is included for square opposite Capitol ------ 36,000 00 For removal and repairing of old Capitol - - 14,000 00 In the sum of seventy-two thousand two hundred and sixty-seven dol¬ lars and seventy-five cents, ($72,267.75,) is not included the forfeitures by contractors under their • stipulations with the Commissioners, each of whom gave bond with ample security for the faithful performance of work. The bonds were drawn in proper legal form, distinctly defining the manner in which each kind of work should be executed, and no doubt 'can exist that the contracts are clearly violated. To what extent the State can recover damages by a process of law is yet to be determined. The Solicitor of the Commission, Hon. Mr. DeSaussure, has been instructed to take such steps in the premises as will protect the State from loss. The Commissioners commenced, and for some time, continued work under the contract system by which of course considerable profits accrued to contractors, although the rates paid for work were not larger than are usually admitted for buildings of that character; but recently, under a 12 complete reorganization of the whole system for construction, contracts have been terminated, and the work is now carried on by day labor under the immediate auspices and supervision of architects and foremen by which all profits accrue directly to the State amounting to at least twenty-five per cent., whilst at the same time labor is now systematically applied and work more faithfully executed: By this it will be seerl that all losses hitherto arising will be completely covered before the building is much more than half completed ; and when completed, taking it for granted that a million will be expended upon it, a large amount will, actually be saved to the State. As a strong necessity is apparent for the construction of new Halls of Legislation from the insecurity and decay of the building now occupied by you, it is to be presumed that your original intentions will be carried into effect. In that event I recommend a change of position for the new edi-?; fice. By locating it at the intersection of Senate and Richardson street' with northern and southern exposures it can be seen without obstruction . from the four points of the compass and will present an appearance more., dignified and imposing. Should this suggestion be adopted, it would be : necessary to increase still more the area of ground about it. If the change of location be made, in the end perhaps it may not be a subject much ;to be regretted that delay and disaster attended the first efforts to construct a new capitol for the commonwealth. I have thus laid before you a plain and truthful statement of the facts connected with this subject. Doubtless great dissatisfaction exists as to the action of the Commissioners in the premises. You will judge them with calmness and equity. They had many difficulties to encounter. Quarrying and working granite is a new business in this State, and com¬ petent contractors and mechanics are difficult to' procure. No public edifice of the magnitude of this has ever yet been constructed here. The commissioners have long felt the embarrassment and responsibility of their position. They have only been sustained in their efforts by a sentiment of devotion to the State and a sincere desire to be useful to it. To them the labor has been one of love. They neither expected or desired com¬ pensation for their anxiety, toil and expense; and their chief desire now is that, their efforts, though fruitless, shall be regarded by their fellow citizens as having been directed by zeal and a strict integrity. I recommend to you the appointment of a Special Joint Committee to institute the strictest scrutiny into the reports, statements and accounts herewith submitted ; and present to your body a plan for your future action upon this subject. The South Carolina College upon which you have bestowed so much fostering care and beneficence, continues to deserve your favor and pro- 13 tection. Under the auspices of its present able and distinguished head, it has been steadily increasing in popularity and usefulness. The labo¬ rious efforts, both of his predecessor and himself, to elevate the standard of character and scholarship, have been attended by signal success ; and the'reputation of the Institution in this regard, has been both exalted and extended. In common with all who have the best interest of the State at heart, I earnestly hope that he may long continue to discharge the func¬ tions of his high office. Talents and qualifications such as his, belong to no party or sect. They are the property of the State which they have •benefitted and adorned by their exercise; and she looks forward with confidence, to his continued supervision of an Institution, which was in¬ tended to be, and is, the nursery of her character, genius, and scholar ship. C- During the past year, the College has been benefitted by two noble en" dowments, and in after years, many a youth, ardent in his search after knowledge and in the pursuit of fame, will pour from his heart blessings Upon the names of Allston and Hutchinson. A half century has expired since the establishment of the College, and after the various fortunes and vicissitudes of life, the Alumni are about to assemble to renew their reverence for their Alma Mater, and for a brief period, to freshen the memories of early years. For a day at least, all of her children are to assemble under the maternal roof; and whilst she em¬ braces and blesses her living sons, she will also weave wreaths of immor¬ telles for those who died in their early prime. The scene will be one full of interest, and I hope of usefulness ; and I recommend you to take such steps as will.give increased effect and dignity to the occasion. Each year convinces us of the wisdom which dictated the establish¬ ment of the Arsenal and Citadel Academies. They have afforded a practical education to the youth who have been placed there, the effects of which are more sensibly felt, each day throughout the State. Their knowledge of tactics acquired during the academic term, is plainly perceptible in im¬ provement in the drill of a large portion of the Militia-; and their attain¬ ments in engineering and surveying, is fast supplying, and will soon sup¬ ply altogether the demand for that kind of knowledge in the State. I have no hesitation in expressing the opinion that more benefit has arisen from the few thousand dollars expended annually upon these schools for ten years past, than has accrued to the State from the application of the free school appropriations for thirty years previous. I cannot omit to bring to your notice the efficient, laborious, and disin terested services of the Chairman of the Board of Visitors. Nothing can be more prompt, uniform, and systematic than his administration of affairs ; ajid as long as he continues in his present position, I feel sure that 14 increased success will attend his efforts. I commend these Academies to your especial care and liberality. The State makes provision annually for the education at the South Carolina College of one youth from the Charleston Orphan House, to be selected by the Commissioners. The choice is usually made as a reward for merit, and the privilege has resulted in making many useful and dis¬ tinguished citizens. Through me the Commissioners now ask that suita¬ ble arrangements be made for one at the Citadel or Arsenal Academy, not only on account of the benefit which will arise from it to the indi¬ vidual. but as an additional incentive to exertion on the part of the stu¬ dents in the Orphan House. I cheerfully add my recommendation to their application. I herewith present for your consideration a memorial from the Trustees of the Roper Hospital, asking aid from the State to assist in increasing theit*' means to such an extent as to enable them to open their building, and make it subserve the purposes for which it was originally intended. The means at their disposal are too limited at present to carry this object into effect, and during the prevalence of the epidemic of the past season they were forced to depend upon private liberality to render it available for a temporary period as a hospital for the sick. Citizens from all parts of the State contrib¬ uted to this object, but of course these resources were withdrawn after the violence of the disease had subsided.' With the establishment of the hos¬ pital, having as adjuncts the benevolent associations of the city, the hor¬ rors of these fatal epidemics can be materially mitigated. I refer the papers for your consideration and the exercise of your judgment. There appears to be some objection on the part of our people to the opera¬ tion of the Militia System of this State; and, doubtless, efforts will be made during the session essentially to alter or abolish it. To say that it is without defect, would be to claim for it a merit which no institution possesses. But with my official experience, and from the observation of those who have taken an interest in it for the last thirty years, I am disposed to think it indispensable for the preservation of the martial spirit of our people. No one is wise enough to foresee the necessity which may arise for the exercise of those qualifications of the citizen which the military organiza¬ tion is intended to cultivate. Issues are pending bearing great conse¬ quences along with them, and every one who examines the course of events must feel that at any moment may arise questions which will de¬ mand an exhibition of those qualities which have hitherto given an envia- bl%precedence to the citizen soldiery of this Commonwealth. I recommend that all matters connected with the Militia System be referred to a board of competent officers, whose duty shall be, with ample time for deliberate investigation, carefully to revise it, and submit the result of their labors to 15 you, at your next session. Accompanying this document is the report of the efficient Adjutant and Inspector General upon this subject. The question of reform in the Free School system, has largely engaged the attention of the people during the past year. It has every where been discussed, and the conviction is generally established that radical changes are necessary, in our present plan of public instruction. In my last annual message I expressed the opinion that it would be premature to adopt, at that time, any plan, that might be submitted for your approval, to reconstruct the system ; but advised the appointment of a Minister of Public Instruction, and subsequently a Bo&rd, to act in con¬ cert with him, by whose united labors a plan complete and adequate can be digested^, for your ultimate adoption. I cannot give the reasons for this recommendation in a manner stronger or more forcible, than by jftsing the language of one whose ability all acknowledge. "All therefore that I would now press upon you is, to have public in¬ struction erected into a department of the State Government. That is the first and an indispensable step ; and until that is done, there never can be a plan adequate, consistent, successful. " What we first need is a collection of the facts from which the data of a proper system may be drawn. We must know the number of children in the State, of the ages at which children are usually sent to school, the kind and degree of education demanded, the relative distances of the resi¬ dence of parents, the points at which school houses may be most conve¬ niently erected, the number of buildings required, the number of teachers, and the salaries which different localities make necessary to competent support. Facts of this sort must constitute the groundwork. In posses¬ sion of these, we may then proceed to compare different systems, adopt¬ ing from among them that which seems to be best adapted to our own cir¬ cumstances, or originating a new one, if all should prove unsatisfactory- All, therefore, that in my judgment, the Legislature should undertake at present, is to acquire this preliminary information, including the accumu¬ lation of facts, the comparison of different Common School systems, and the digest of a plan suited to the wants of our own people. This can be done by the appointment of a Minister of Public Instruction, who shall be regarded as an officer of the government, compensated by a large salary, and who shall give himself unreservedly to this great interest. Let him be required to traverse the State, to inspect the condition of every neigh¬ borhood, and from personal observation and authentic testimony let him become acquainted with the number, the extent and the circumstances of the children. Let him be prepared to say where school houses can be most conveniently erected, the distances at which they should be removed from -each other, the kind of teacher needed.in each neighborhood, and let 16 him indicate what sections of the State are unprepared for schools in con¬ sequence of the dispersion of their inhabitants. Let him be able to give some probable estimate of the expense incident to the successful operation of an adequate scheme. In the next place, it should be his duty to mas¬ ter the existing systems, whether in this conntry or Europe, and to lay before the Legislature a succinct account of their fundamental provisions. Let him propose the scheme which he thinks ought to be adopted here, and let his report be, referred to an able and learned Commission, charged with the final preparation of such a scheme as we may be ready to enact into law." The expense of carrying into effect the foregoing suggestion should be defrayed out of a reserved per centage upon the present Free School appropriation; thus saving additional drafts of money from the Treasury, and making the Free School fund correct ultimately the abuses and defects of the present system. I had the honor at your last session, to submit to you a statement of the condition of the Blue Ridge Railroad enterprise, and also certain sug¬ gestions with regard to improvements in the State Asylum for the Inshne. Upon these two subjects my opinions, then expressed, remain unchanged; but I forbear to press them upon your consideration for reasons which are obvious to you and which you will not fail to appreciate. Upon the subject of the Asylum I herewith submit for your perusal and careful consideration an elaborate statement from the able physician of the Institution, whose long experience and thorough investigation of the subject entitles his opinions to the highest respect and credit. It pre¬ sents such a variety of facts and arguments, as cannot be embraced, even were it desirable, in the limited space of an annual message. I entreat your examination of them as authority at some future day for your action upon this subject. One fact appears to me to be indisputable, that it would be erroneous policy on the part of the State to expend any farther sums upon the present ^premises and location, beyond the usual annual appropriation, but reserve its means for a future occasion when radical changes may be regarded as indispensable, for the greater comfort and ben¬ efit of the unhappy occupants of that cheerless abode. Upon the subject of the Blue Ridge Railroad, I beg, with the greatest deference, your attention to two enquiries. First, should the enter¬ prise be abandoned for the want of funds to continue it, whether the limi¬ tations attached to the agreements between the several companies in their amalgamation into one, will not eventuate in a separation ; and if so whether or not, there is a probability of their being ever again united, so as to afford the same advantages to this State, in the matter of Western trade and commerce. 17 Secondly, whether, in the event of a failure in the Blue Ridge Railroad enterprise, there is a reasonable hope that North Carolina will allow any road in this State, uniting with one in that, to connect with her great road leading across the Alleghanies to the West, except with such a change of gauge or the substitution of other difficulties, as will forever prevent the people of this State from availing themselves of the advantages of trade with the valleys of the West through that channel, These are serious considerations, and are worthy of your gravest inquiry. My own con¬ viction is, that the advantages which we now possess under present char¬ ters once lost, are lost forever. I have the honor to lay before you a letter from His Excellency the Governor of Georgia, accompanied by the report of a Special Joint Com¬ mittee of the Legislature of that State, upon the subject of the " Memo* jrial of the City Council of Augusta in relation to the bridge across the "Savannah river" at that place, with the request that I would submit the same to your consideration. At your last session, 1 was instructed in conjunction with the Attorney General, to take such steps as were necessary on the part of this State to submit the questions at issue between herself and the State of Georgia u|ion the subject of boundary on the Savannah river to the adjudication of the Supreme Court of the United States. In conformity with this in¬ junction, I addressed a communication to His Excellency the Governor of that State, inviting his co-operation in this measure. I have not yet re¬ ceived a reply; but earnestly hope that the propriety of such a step will be conceded, as the easiest and most equitable mode of adjusting this long¬ standing question. In April last a very large and harmonious Commercial Convention was held in the city of Charleston, which took certain initiatory steps, among various other measures, towards the formation of the Southern Pacific Railroad Company. The Committees appointed by the Convention have submitted the form of an Act of Incorporation of the said Road to be adopted by the Southern States. I herewith submit it, together with other papers connected therewith, to your inspection and consideration. I also transmit to you certain Resolutions from the Legislature of Con¬ necticut and Rhode Island; also certain decrees, regulations, and instruc¬ tions by His Majesty the Emperor of the French, in relation to the Uni¬ versal Exhibition to be held in Paris in 1855. This latter paper was offi¬ cially forwarded to me through the Secretary of State of the United States, and I have accordingly appointed three Commissioners to take charge of such products and other articles from this State as may be intended for exhibition. I would again call your attention to the condition of our enactments with 2 18 regard to the introduction of free persons of color employed as mariners or otherwise on board of vessels trading with our seaports. You are, of course, aware that some of these provisions have long proved a source of dissatisfaction, andhave even been regarded by friendly powers as to some extent inconsistent with our international obligations. The efficiency, too, of the present regulation for the purposes designed has been doubted by many who have given some attention to the sub- ect. Various circumstances, to which it is now unnecessary to allude, seemed for a time to render any alteration inopportune. I would, however, recommend it as a subject worthy of consideration on your part, whether some judicious modifications may not at the present time be adopted—and' whether, while providing sufficiently against any attempt at mischievous interference on the part of .such persons, and vesting power in the municipal authorities to enforce all proper police regulations, the- object in view may not be effected in a mode less offensive to other governments'.'*" Other States which had adopted similar provisions have modified their enact¬ ments without, as I have been informed, experiencing any pernicious conse¬ quences. While we could never sonsent to surrender or impair our right to treat the subject with a view exclusively to our own sense of policy and ex¬ pediency, it is at the same time I think becoming to make proper conces- cions, consistent with this, to what may be fairly regarded as only an at¬ titude of friendly remonstrance. At your last session you passed a very important Act relative to the registration of Births, Deaths, and Marriages. As the appointment of Registrars took place after many of the Tax Collectors had commenced their other duties, and the books and formulas required time for their pre¬ paration, the return has been an imperfect one. I herewith send you the Report of the Registrars, and invite your attention to the suggestions for such modification of the law as will increase its efficiency and valuable results. No appropriation having been made for carrying out the Act, it became necessary for me to charge the Contingent Fund with the neces¬ sary expenditure for books and schedules. As a constituent part of the American Confederate Republic, the ex¬ isting aspect of our foreign relations is a matter of deep interest, and re¬ quires from you watchfulness and solicitude. The laws of comity, which regulate the intercourse of nations, a discreet and sound policy towards ourselves, and the good faith to be observed in maintaining the terms of treaties, should make this nation carefully avoid both the reality and ap¬ pearance of attempting directly or indirectly to grasp any portion of foreign dominion. Whatever can be effected that is desirable for the country to achieve, by open treaty with a distinct and separate power, is a question of policy alone, to which there can be ro objection ; but beyond this the 19 government has no right to go, whether through the agency of unlawful enterprises at home, or indiscreet and anomalous ministerial interfernce 'abroad. Events are transpiring in portions of this Confederacy which are well calculated to arrest the attention and excite the vigilance of the Southern people The results of the late popular elections in certain sections of the Union threaten yet more seriously to disturb the repose, which for a brief period has existed. Those who maintained just and constitutional views of Government policy have been rudely thrown aside, and politi¬ cians returned to office who entertain sentiments destructive to the dura¬ tion of this Union. It is a significant indication of the times, when certain individuals and States have the hardihood to select from the Constitution such portions as subserve their own dangerous and disorganizing views, and reject others to which they are opposed; conduct which, if fully car¬ ried out, would create the worst sort of despotism. These indications cannot be disregarded by the Southern people, and are of the deepest in¬ terest to the whole Confederacy. The man does not live who can tell the results of a separation of these States; but no people possessing a con¬ stitutional government deserve to enjoy its blessings, if they are not pre¬ pared ultimately to risk all the consequences of it. But as the Chief Ma¬ gistrate of this Commonwealth, and looking to these issues, the last thing that I would advise would be violence, intemperance, or precipitation Calm deliberation before action is essentially the best element of success in great movements. As a fundamental proposition, these States had be¬ fore the adoption of the Federal Constitution, and have now, constitutional organizations, capable of performing all the functions of independent gov¬ ernments ; and have the power, under a cordial understanding, not only to protect themselves effectually, but, by a concert of action, to preserve the Federal Government also; and it would be a noble exercise of it, by exhibiting a perfect union of feeling, sentiment and interest, to arrest its rapid march towards the licentiousness and anarchy which otherwise surely await it. Discarding all State and political jealousy, let the rulers and public men of the South unite upon this great principle of conservatism and preserva¬ tion, and the Constitution and the Union are safe; without such union, all is lost. I devoutly commend you, gentlemen, to the protection of that Power, who binds those whom He loves by the closest bonds of affection, and disperses those whom He condemns because they forget him. JOHN L. MANNING. Columbia, November 27,