214 A. L. Bishop — The State WorJcs of Pennsylvania. 



nary revenue, exclush'e of loans, was $1,643,923.21, of which 

 $562,690 was from taxes, and $684,357.77 from canal and railroad 

 tolls. The interest payments, in 1835, totalled $1,169,455.69, a sum, 

 as will be seen, nearly equal to the entire revenue. In the face of 

 such unsound financial conditions, economy in all matters of public 

 policy and a reinforcement of the tax laws of 1831 would naturally 

 have been expected. On the contrary, however, a wide extension 

 of the internal improvement system was commenced, and the above- 

 mentioned laws were repealed. Let us now examine the circum- 

 stances giving rise to such action. 



The charter of the Bank of the United States was to expire 

 March 3d, 1836. As early as ISTovember preceding this date, proj- 

 ects began to be discussed for getting from Pennsylvania a state 

 charter. This scheme soon became popular, for it appeared that 

 there would be obtained in this way by the state a large sum of 

 ready money, as well as the means for placing loans upon easy 

 terms. Furthermore, the extensive patronage which had already 

 grown up under the past expenditvire of nearly $23,000,000 among 

 jobbers and contractors, as well as under the appointment of 

 numerous operators on the public works, naturally produced a 

 strong party in favor of any movement which would provide for 

 their extension. Besides, many could be found anxious to endorse 

 any reasonable plan to avoid paying taxes. Accordingly, on Feb- 

 ruary 18th, 1836, a bill was passed entitled "An act to repeal the 

 state tax on real and personal property, to continue and extend 

 the improvements of the state by railroads and canals, and to 

 charter a state bank to be called the United States Bank."* This 

 act, then considered the means for effecting the financial redemp- 

 tionf of the state, has been justly characterized as follows : — 



"The act of the Pennsylvania Legislature, by which the United 

 States Bank of Pennsylvania was chartered, is, on its face, a piece | 



* Laws of Poimsylvania, 183ri-36, p. .3G. 



f Governor Rilner, in his annual message for 1836, in speaking of this 

 act said: "Tlie increase of the state debt is arrested. Tlie state tax has been ■ 

 permanently repealed. Loans for the payment of interest, that infallible 

 precursor of private as well as public bankruptcy, liave, I trust, forever I 

 ceased. . . . . The whole of this healthful and cheering change was j 

 produced by one well-time, wise and truly Pennsylvanian act of legislation. 



The Bank of the United States became, as a State institution, 



the means of .producing for Pennsylvania that financial redemption which it 

 had formerly effected for the Union."— J. H. Rep., 1836-37, II, p. 22. 



