far as it may be absolutely necessary to induce individuals to engage in banking.

It is true that there may be some countries in which, from the superabundance of capital, the bare right to establish a bank corporation, even under the most stringent restrictions, would be so valuable as to be saleable at a premium: but my knowledge of Missouri and the state of its money capital, would lead me to the conclusion that no system of banking, offering such advantages to capitalists as would induce them to pay a bonus for the privilege of operating under it, would be one in which the restrictions would be all that are desirable for the protection of bank creditors. With us the danger is not that we may impose too stringent restrictions and thereby unnecessarily deprive our Treasury of a profit which might be made by selling the right to bank without them, but that we may be compelled to omit restrictions, otherwise judicious, in order not to render the whole system a nullity by deterring capitalists from investing under it. But should, as is most probable, the main question be, in forming a banking system for the State, what restrictions can be introduced without rendering it so stringent as to prevent investments under it, a wide field will be opened for legislative caution and wisdom on the part of the General Assembly. Fortunately the terms of the proposed amendment of the Constitution will relieve you from the necessity of considering some questions of great perplexity in the banking systems of some of our sister States. In Missouri every bank will have to be "based upon a specie capital, and made liable to redeem its issues in gold or silver." This clearly means that the subscriptions to the capital stock of such a bank must be paid only in specie: but to the General Assembly is left the task of devising the means and modes of preserving a specie capital as the basis of operations of such a bank, and of preserving its continuous ability, as well as enforcing its liability to redeem its issues

in coin.

There is, also, nothing in that proposed amendment which will prevent the General Assembly from imposing on any bank such additional liabilities and restrictions as may be prudent. Among the restrictions which have been carried into practice in banks, or suggested by men professing a knowledge of finance, are, liability of individual stockholders beyond the amount of their stock, either to a limited extent, or jointly and severally, for the issues of the bank, in a fixed proportion to its capital, or to the specie on hand at certain periods: preference in payment of liabilities of the bank of note-holders over depositors, and of both over all other creditors; restriction of the rate of interest on loans, and of the proportion of capital to be employed in exchange business: prohibition of usurious loans in the shape of sales or purchases of bills of exchange at exorbitant discounts: restriction of the amount of discounts to directors: exclusion of persons engaged in money-lending from the office of director: penalties on the purchase or sale, directly or indirectly, by any officer of the bank, of bonds, notes, or bills of exchange: reservation of a right by the State to name a portion of the Directors; frequent periodical publication of the state of the Bank's affairs; periodical examination of its condition by persons acting under State authority, and a reservation of a right in the State to alter or repeal the bank's charter.

I will not enter into a discussion of the merits of all these restrictions: the General Assembly, in its wisdom, will select such as they deem

judicious, or devise others to secure the great object for the people of a banking system, viz: a sound currency.

It should, also, in my opinion, be the fixed policy of the State, to establish no bank except on the condition that full liberty be left the General Assembly to alter or revoke its charter. Experience may teach the necessity of new regulations, necessary for the public good, and it can be no injustice to the stockholders for the State to retain such a power; because, if they are dissatisfied with such new regulations, they can always surrender their charter, and invest their capital otherwise; nor is it to be expected that any General Assembly will use such a power to their injury. The amount of capital authorized by the proposed amendment of the Constitution is, doubtless, ample to supply the present demand for banks. Should it, however, be less than that demand, I am inclined to think that it will be sound financial policy to give the preference, in fixing the amount of capital of the banks, to those located in our smaller towns rather than those of the commercial capital of our State.

Bank accommodation to our country merchant is, in fact, accommodation to the wholesale dealers, from whom he makes his purchases in St. Louis or elsewhere, as it enables him to meet his liabilities to them. It is, also, better to have the trade of the State conducted, as far as possible, on the principle that the country merchant should obtain his bank accommodations at the place of his residence, where he is best known and where his property lies, and make his purchases from the wholesale dealers principally in cash, rather than use his credit in the shape of notes to those dealers, to be offered by them for discount at the commercial capital, and there turned into cash. Facilities to the farmer to obtain, in case of necessity, bank accommodations, are also useful in rendering him more independent of speculators and fluctuations of the market in obtaining a fair price for his produce. The preponderance of capital in a commercial center has, also, a tendency to bring the country and smaller towns into a commercial subjection to it-a subjection not only financially unwise, but politically dangerous, as the influence of the money power in any community is greatly increased by its concentration in a few hands and in one place. I confess to a desire to see the country merchant and the farmer, by ample facilities for the use of his credit at home, enabled to conduct his dealings with the wholesale trader on a footing of the greatest independence, to which legislation can enable him to attain: it, also, cannot be denied that a growing spirit of bitter hostility to the time-honored institutions of Missouri, has shown itself in the city of St. Louis among a portion of its inhabitants; and while it would be unwise and unjust to legislate against the interest of any community because of the conduct of a portion of its citizens, yet it is both wise and just to shape your legislation with a view to render the balance of the State independent of its metropolis, which chooses to give aid and comfort to our eneinies.

We have seen in Eastern cities systematic attempts to divert capital from our borders, depreciate our State credit, and even cry down that of our individual merchants, for the sole reason that we protect the institution of negro slavery. This General Assembly will not have done its duty if it omits any wise and just measure to secure for the farmer and country merchant, complete independence of mammoth city banks, to be controlled by enemies to our institutions, ready, as in some financial circles of the great Atlantic cities, to make his credit with them depend on

his political subserviency to their fanatical schemes. To such enemies in our midst, we can give all the favor and protection the Constitution guarantees them: they cannot seriously expect us to put into our mouths a financial bit wherewith to control us. To extend reasonable banking facilities to our commercial capital it is not necessary to run even the slightest risk of converting Missouri into a bank-ridden State, controlled by anti-slavery corporations in St. Louis.

The Geological Survey of the State is progressing as favorably and rapidly as the means at the command of its able and efficient Superintendent, Prof. G. C. SWALLOW, will permit. The results of the labors of the State Geologist and his Assistants, exhibited in the reports already published, must convince every one that the State is most amply compensated for the outlay, by the increase of the wealth of our citizens, from a more extensive knowledge of our great mineral resources. I earnestly recommend such an additional appropriation as will enable the Survey to be continued with efficiency and rapidity.

The Penitentiary continues to be well managed under the present system and I renew my recommendation that the system be maintained.

The State University is in a prosperous and flourishing condition. In this enlightened age it is unnecessary to dwell upon the great importance of such an Institution in our midst, and I cordially commend its interests to your fostering care.

The Deaf and Dumb Asylum, Lunatic Asylum, and Institution for the Education of the Blind, continue to be conducted in a satisfactory manner, and fully merit the humane interest which the State manifests in their preservation and the extension of their benefits to all deserving objects.

The act of the last General Assembly, to provide for the printing and binding of the Revised Statutes, seems to have contemplated that they should be bound in one volume; but, in consequence of the great size of the work, I advised the Superintendent to divide it into two volumes, and he has done so.

An additional appropriation will be necessary to defray the increased expense, and I recommend that it be made.

I have received patents from the United States for a large amount of lands selected by the State or county authorities, in the Springfield, Warsaw, Jackson, and Fayette Land Districts, under the provisions of the act of Congress of the 28th September, 1850, donating swamp and overflowed lands; and I am assured that the State will receive patents for the remainder thus selected in this State as rapidly as the patents can be made out at the proper Department in Washington City. These embrace all the lands that have been selected and reported to the Commissioner of the General Land Office, the validity of which selections have not been disputed by individuals. The time beyond which no further disputes of this character would be allowed, having expired on the 21st of June last, I consider it highly probable that Congress will, at its present session, pass an act authorizing the issuing of patents at once to the States, for all the lands that have been reported, thus dispensing with any further action on the disputed cases.

I again call your attention to the very inadequate salary attached to the office of Governor. About to surrender it, I have no personal interest in having it increased; but my own experience convinces

me that the sum now allowed is insufficient to properly defray the unavoidable expenses of a Chief Magistrate of so large a State as this. I recommend that the salary of Governor be raised to at least three thousand dollars per annum. I also recommend that, in place of the present salaries, fees, and charges allowed the other chief officers of the State at Jefferson City, a fixed compensation to each, of at least two thousand dol lars should be given; house rent, servant hire, provisions and all other expenses necessary to the support of a family, have increased at least two-fold in this city within the last ten years.

I renew my recommendation of the consolidation of the Supreme Court at Jefferson City. Any plausible reasons that might have have been urged against the proposition, when made by me two years ago, are greatly weakened now by the fact that a speedy communication. by railroad exists between St. Louis and the capital.

The opinions expressed in my last biennial message on the subject of a railroad, line of telegraph, and daily mail across the continent to California, have not only remained unchanged, but have been. fortified by further observation and reflection. Events of the present year, also, ought to warn the Government of the United States against pursuing the mistaken policy of making our main lines of communication with our Pacific coast through the possessions of foreign powers. Of the two main lines, that through Nicaragua has for months past been obstructed by the civil war still raging in that unhappy country. The other, over the Isthmus of Panama, has been shown to be attended with imminent danger to the lives and property of our citizens, from the lawless conduct of its inhabitants. We learn from the last message of the President that "questions of a most serious nature are pending between the United States and the Republic of New Grenada," all arising out of this very necessity now imposed on our citizens of using a circuitous route. through foreign territory and over two oceans, instead of a natural and convenient one through our possessions to the Pacific coast. All friends of a speedy mode of communication between the Eastern and Western limits of our Confederacy should rejoice, that the political party which the people have placed in power for the next Presidential term stands pledged in favor of all proper and constitutional efforts by the Federal Government to effect that end.

Already something has been done by our own citizens towards improving the present condition of things. A company has been organized by citizens of this State, and has made the necessary preliminary examinations, with a view to the establishment of an overland mail route from Missouri to California. A bill has, also, been introduced into one branch of Congress for an overland mail route from St. Louis to San Francisco, and for a line of telegraph in connection with it. I trust that it will speedily become a law, and be the first only in a series of judicious legislative acts by the Congress of the United States to draw more closely together the bouds of the Union, in establishing a frequent and rapid overland communication between its Atlantic and Pacific coasts.

This, my last communication to you, gentlemen, will terminate my official connection with you, and with the people of the State of of Missouri. I cannot forego the only opportunity I shall have to return my unfeigned thanks for the many honors they have conferred upon me, and and the generous confidence they have extended to me,

my adminis

tration. I have endeavored invariably and conscientiously to exercise the important powers confided to me in such manner as to advance the great interests of the State, and to maintain its credit and character. If I have committed errors, (as no doubt I have,) I shall carry into my retirement It the pleasing consciousness that they have not been intentional ones. will become the immediate duty of the distinguished citizen who has been called to succeed me to cooperate with you in the promotion of the public prosperity. The circumstances under which he was elected, abundantly attest the confidence of the people; and his sterling integrity, eminent abilities and unquestioned patriotism give the best assurance that nothing will be wanted on his part in devising or aiding in measures of public utility.

I take great pleasure in congratulating you on the auspicious result of the Presidential contest by which these States have just been convulsed. For the first time in the history of the Republic, the solemn warnings of the Father of his Country have been disregarded by a large portion of its people, and a sectional party, having (with a few ignominious exceptions) its adherents solely in those States in which the institution of slavery does not exist, has been rallied to an attack upon the equality of States, which is the corner-stone of our Federal Institutions. But another very large portion of the people of those very States, and in some of them a majority, have proven faithful to the compromises of the Constitution, and driven back the flood of fanaticism which threatened to overwhelm us in its fury. A large debt of gratitude is due by all lovers of the Union and the Constitution to the national men who met and conquered the foes of that Union and Constitution in the Northern States. Let us trust that a conquest gained over such heavy odds will prove a durable one. The experienced statesman who is about to take the helm of our National Government, has before him a task of delicacy and difficulty; but his principles and previous public life afford us ample guarantees that his aims will be only the glory and prosperity of all the States, and the perpetuation of the Union in the spirit in which it was formed by our fathers.

In conclusion, fellow-citizens of the General Assembly, permit me to take leave of you, with sincere wishes for your welfare as individuals, and a confident hope that your labors as legislators will redound to your own honor, and the permanent advantage of our great and beloved State.

EXECUTIVE DEPARTMENT,

City of Jefferson, December 29, 1856.

STERLING PRICE.

}

Mr. Parsons offered the following resolution:

"Resolved, That copies of the Governor's Message be printed for

the use of the House."

Mr. Edwards moved that the blank be filled with 1,000;

Mr. Blakey moved to fill the blank with 10,000;

Mr. Morrison, of Sullivan, moved to fill the blank with 20,000;

Which motion, was agreed to and the resolution adopted.

Mr. McCombs moved that 5,000, of the 20,000 ordered, be printed in

the German language;

Which was agreed to.