A. L. Bisliop—The State Worhs of Pennsylvania. 215 



of corrupt legislation. Its corruption was addressed to the people 

 of the state, not to private individuals. It comprised three projects 

 in an obvious log-rolling combination, — remission of taxes, public 

 improvements, and bank charter."* 



The first section, as before mentioned, repealed the tax laws 

 of 1831, and thus left the state almost taxless. By other sections, 

 more than two millions of dollars were appropriated at once, for 

 the extension of the transportation improvements. Furthermore, 

 in consideration of the privileges conferred upon the bank by this 

 act, and in lieu of all taxes on dividends, it was to pay into the 

 treasury of the commonwealth the sum of $2,500,000, and a further 

 annual sum of $100,000 for twenty yearsf for common school pur- 

 poses. It was also pledged to advance on permanent loan any sum 

 or sums not exceeding in the whole $6,000,000, in return for which 

 the state was to issue negotiable certificates of stock, reimbursable 

 in 1868, bearing interest at 4 or 5 per cent, per annum payable half 

 yearly. It was provided that, if the interest should be at 4 per 

 cent., the loan was to be taken at par; but if at 5 per cent.; the 

 bank must pay a premium of 10 per cent. Again, the bank was 

 obliged to advance to the commonwealth, as a temporary loan, at 

 4 per cent, any sum, not exceeding $1,000,000 a year, reimbursable 

 at the pleasure of the commonwealth, within twelve months from 

 the date of the loan; also it was to subscribe $675,0,00 to the stock 

 of certain railroad and turnpike companies. Such were the con- 

 siderations deemed equivalent to the privileges granted to the 

 bank by its new charter. 



The rechartered bank, which, at best, was a most unstable insti- 

 tution, now entered upon a period of intimate relationship with 

 the state's finances. It attended to the transfer of state stocks, was 

 by law the depository of the state's funds and was the agency 

 through which the semi-annual interest payments were made.J The 

 rapid extension of the public improvements which now followed 

 made it necessary that the state, in accordance with the conditions of 

 the charter, should draw heavily from the bank. But, soon after 

 the latter undertook to make these large payments, the money mar- 

 ket throughout the country began to tighten, and increasing strin- 



" Siimner, Andrew Jackson as a Public Man, p. 338. 

 f The charter was granted for a period of thirty years. 

 $See J. H. Rep., 1836-37, II, p. 22, and 1837-38, II, pp. 33 and 82; also 

 Hunt's Mer. Mag., XX, p. 261. 



