USA > Georgia > The Confederate records of the State of Georgia, Vol 4 > Part 25
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GOVERNOR CHARLES J. JENKINS
verity, but redeemed by their connection with reformatory appliances. Chief among them is that of solitary con- finement at hard labor, for a term apportioned to the character of the offence. This, which makes the peni- tentiary system, has been generally adopted in the States of the Union, and seldom, if ever, abandoned after trial. Its introduction, always makes a very marked change of system, and I am inclined to think that the disappoint- ment so often expressed in Georgia with its results, has been occasioned mainly by unreasonable expectations entertained in its inception. The wit of man can devise no scheme of punitive justice which will prevent the com- mission of crime-under any system the criminal calen- dar will increase with increasing population. If the sys- tem which has so long existed in Georgia be abandoned, what shall replace it? I am aware of no other sugges- tion than a return to that which preceded it. About thirty years since, the General Assembly of Georgia made this experiment, but the scenes of the whipping post, and the pillory, and the exhibition in the open court of the red hot brand, burning infamy into human flesh, pro- duced in one year such a revulsion of popular feeling, that their immediate successors undid their work, and restored the penitentiary. It may well be questioned, whether our constituency would now look with more equanimity upon such proceedings. In making the change under consideration, the crimes now punishable by confinement in the penitentiary, must be divided in two classes-the more aggravated added to the list of those entailing capital punishment-the other remitted to barbarous sanctions of an exploded code. To the lat- ter I have already alluded. In reference to the former, it may be well to consider the probable efficiency of the
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proposed penalty. Statesman, jurists and publicists, of this day, agree in the opinion that certainty, gives more efficacy to punishment, than severity. Where trial by jury prevails, no reliable estimate can be made of the ยท certainty, with which any proposed punishment will wait upon crime, without consulting public opinion, regarding its propriety. We are not without some data for the application of this test. The number of crimes now sub- jected to capital punishment, in Georgia, is comparatively small; yet it is perfectly notorious, (using the mildest form of expression,) that in such cases, the character of the foreseen punishment, marvelously increases the dif- ficulty of satisfying jurors that the accused has com- mitted the crime charged. So evident is that feeling, that your existing code, provides as one test of the qual- ification of a juror, before he is put upon the accused, the question "are you conscientiously opposed to capital punishment?" This test, as all know, excludes from the jury box, many good, but, as I humbly conceive, sadly mistaken men. I submit whether, in the face of such clear indications of public feeling, it be expedient to swell the list of capital offences, by the addition of minor ones. The horse thief might well prefer to go before the country with the penalty of death impending, rather than with the milder one, affixed by the present code. This view might be extended, but you will readily follow the train of thought.
My recommendation, therefore, is, that instead of abandoning, you address yourselves, with the light of experience, to the work of improving the system. One of its greatest recommendations, theoretically, is that it tends to the reformation of the convict. This merit is wholly denied to it by its opponents. The truth fairly
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stated, probably is, that in this respect it has accom- plished less than was expected. The practical question is, may it not be made to accomplish more? That many convicts will prove utterly incorrigible is to be expected, and in most instances this will be indicated very soon after their admission. These should be subjected to the hardest labor, and to the greatest attainable isolation, thus diminishing their corrupting influence. As regards the less obdurate subjects, it is worthy of consideration whether hope, that great excitant of human action-hope of return to free life, under favorable auspices-hope of shortened imprisonment-hope of mitigation of its se- verity while it lasts, may not be more freely and more judiciously used as a reforming agent. Has it been suf- ficiently considered-has it been fairly tested, how far reward in the shape of mitigated punishment, may con- sists with punishment itself which is meant to be reform- atory? Have extraneous good influences such as moral and religious oral teaching, impressive and well directed reading-been applied with sufficient judgment and per- sistency ? The solitary element of the convict's impris- onment is, doubtless, very potent, because very bitter. Its stringent enforcement to restrain bad influence, and to conquer obduracy, would be eminently proper; whilst its judicious relaxation, as a reward of good conduct, and earnest effort to amendment, might be very salutary.
The tendency in such institutions, as in schools for boys, and higher seminaries of learning, is to one unvary- ing disciplinary course, regardless of difference in traits of character, or in degrees of depravity. It makes the daily administrative routine more easy, and hence the strong temptation to it, but no educator of the young
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ever achieved distinguished success under it, and prison discipline so conducted, must fail likewise.
Should you determine to adhere to the system, much will have to be done to repair the material injury sus- tained by the institution, into which, doubtless, your com- mittees will enquire, as well as into its general manage- ment, to which I am as much a stranger as any, and more than many of you.
The question will probably arise, whether if it be con- tinued, it shall be rebuilt here or established anew at some other point. There are certainly advantages in having such an institution at the seat of the government, which will readily occur to the reflecting mind, and one great objection heretofore existing to the locality, viz. : its inaccessibility, by railroad travel, and transportation, is overcome already, and doubtless it will, ere long, be still more easy of access. There may, however, be ad- vantages, in some other locality, commending it to pref- erence. Of this, you, in your wisdom, will better deter- mine. Should you determine to locate it elsewhere, I respectfully suggest that the present site, with necessary repairs to the buildings, not destroyed, and the addition of others, involving no large expenditure, might be used advantageously, as a labor prison for persons of color convicted of certain crimes. Public works of suitable descriptions, such as the tanning of leather, and the lower and more easily acquired mechanic arts, coming within the purview of the report of the commissioners, herewith transmitted, might be advantageously estab- lished there.
By Act of the General Assembly, approved December 6th, 1862, the executive was authorized to establish, in
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GOVERNOR CHARLES J. JENKINS
connection with Messrs. Devine, Jones and Lee, a card factory, for the supply of a want sorely felt throughout the State. The connection was formed and the factory established on the penitentiary grounds. As in the changed circumstances of the country, it will not be de- sirable to either party to continue the connection, I ad- vise the appointment of an agent or agents, with full authority to settle all matters in account between the parties, and to divide the assets, and make sale of such as may be allotted to the State.
The penitentiary, if continued in operation, will doubtless need the appropriation of more or less money to extinguish in whole or in part the amount due it by the State as stated in the report of the principal keeper, and to which your attention is invited.
STATE FINANCES.
The financial condition of the State, demands serious consideration, and wise action. The currency, in the treasury, when hostilities ceased, is utterly worthless. The functions of all officers of the State government hav- ing been, for several months suspended, no tax has been collected, during the political year just ended. The ex- penses incident to a reorganization of the government have been, thus far, met by temporary loans, and these are now very nearly exhausted. For all practical pur- poses the treasury may be said to be empty.
From what has already been said, it is apparent that during the year upon which we have entered, large sums must be expended, in the revival of important interest. In addition to these, the arrears due upon the civil list of the last year, the interest upon the public debt, unpaid
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for several years, a portion of the principal of that debt, matured, while we have been cut off from connection with the rest of mankind, and the necessary expenses of the government during the political years 1866 and 1867, must necessarily be provided for. I include the expenses of 1867, because if resort be had to taxation, the usual resource for supporting government, that tax must be imposed and collected in the present year. The arrear- ages of the past, and the regularly accruing expenses of the present year, can be met only by the sale of valuable property possessed by the State, or by loans predicted on her credit. The former alternative I may dismiss, as an expedient without advocates.
Recourse must, then, be had to the credit of the State, and the practical questions are, to what extent and in what form it shall be used. I accompany this communi- cation with a tabular estimate of money which will be required for the years 1866 and 1867, amounting to $806,- 830 for 1866, and $791,455 for 1867, which I think will admit no material reduction. Superadding to this sum, so much as you may determine to expend in the recon- struction and refitting, of the Western & Atlantic Rail- road, and the penitentiary, and such other appropria- tions, as it may be your pleasure to make, for the relief of disabled soldiers, for the suffering families of those who fell in the war, which present strong claims upon our humanity and gratitude, and for any other purposes, you will be enabled clearly to estimate the necessities of the State. We may at once assume that the whole out- lay in money which you may determine to make in the political year now current, which will terminate on the first of November next, must be borrowed, unless you
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not only resort to taxation, but materially advance the payment of the tax.
Looking to the year next ensuing, (1867), it will be necessary to determine during your present session, whether you will provide for its wants by levying a tax during the present year, or whether you will put that burden also upon the credit of the State, and give to your constituents, in their reduced circumstances, another year's exemption from State taxation.
It must be borne in mind that there is upon the statute book, an unexecuted law, requiring the payment of a tax in the year recently ended-unexecuted, because of the disorganized condition of the government. I recommend the remission of this tax, and the imposition of a moder- ate one to be collected during the latter part of the pres- ent year, when fruits of its operations shall have been partially realized. In the tabular estimate, before re- ferred to, I have for convenient reference set forth a statement, made up from the report of the late Comp- troller-General-showing what sums different rate per cent. upon the assessed value of property in 1860, (other than slaves,) will yield.
Owing to the late period of your organization, and the circumstances surrounding you in your brief session, no appropriation of money for the civil establishment, in the current year has been made. The first quarter has very nearly expired, and to meet its demands it will be necessary to appropriate a sufficient sum, before a general appropriation act can be matured, and indeed as quickly as possible, the amount of which can be deducted from the estimates in the general bill.
Discouraging as is the present aspect of our finan-
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cial affairs, it may safely be affirmed that you may make the embarrassment only temporary. The entire indebt- edness of the State, clearly ascertained, including its funded debt, interest upon it in arrears, and the tempo- rary loans effected recently to put the government again in operation, falls short of three millions, five hundred thousand dollars. If to this were added two million, five hundred thousand dollars to repair all reparable dam- ages, and meet present necessities, without imposing heavy burthens upon a people temporarily exhausted by protracted war, the whole amount of indebtedness would be six millions of dollars. The annual interest upon this sum, and the annual appropriations for the support of government, upon the scale of estimate here pre- sented, would not exceed eight hundred thousand dollars.
From the earnings of the Western and Atlantic Rail- road, put in good working order, and from a tax of one- eighth of one per cent., upon the property of our people, (these estimates being put intentionally low,) we may safely calculate on an income of one million and fifty thousand dollars, showing a yearly balance in the treas- ury of two hundred and fifty thousand dollars. This annual surplus might be treated as a sinking fund for the public debt, as follows. If the debt be raised to six millions of dollars, (and it may fall considerably short of that amount) the bonds to be hereafter issued, in re- demption of those matured within the last four years, and unpaid; in funding the arrears of interest on the funded debt; and to meet the pressing necessities of the State, will amount to three millions, four hundred and fifty-six thousand, two hundred and fifty dollars. Two per cent. upon this sum, set apart as a sinking fund (ac- cumulative) would amount to sixty-nine thousand, one
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hundred and twenty-five dollars, which deducted from the annual surplus of two hundred and fifty thousand, would leave one hundred and eighty thousand, eight hundred . and seventy-five dollars. This sum set apart and applied faithfully to the payment of the bonds now extant, would (as a little calculation will show), pay their full amount. as they mature, until 1872, when it would extinguish nearly half; leaving about three hundred and seventy thousand dollars to be otherwise provided for, six years hence. That done, the annual surplus would in each year extinguish the maturing debt now existing, and close that account in the year 1881. Meantime the sinking fund provided, as proposed for the newly created debt, if faithfully set apart, and judiciously invested, would silently but surely work out its redemption. One great advantage of the sinking fund is, that it secures confi- dence, and opens the way for favorable negotiations of the securities for which it may be provided. But another incalculable advantage to the debtor State, is that it dis- tributes the burthen of payment equally over all the years the debt has to run, which, for that reason, can never come, with a stunning shock upon the treasury, and necessitate a repetition of the borrowing operation. These are matters of calculation, the data for which are found in the Comptroller-General's report, except the estimated receipts from the Western and Atlantic Rail- road, in which I have full confidence. If it be thought, sufficient margin has not been left for miscellaneous ap- propriations, the reply is, that, the annual income will be swelled by items of taxation not taken into the account, and by dividends on railroad stock, owned by the State, also left out, because not immediately available; whilst, by the gradual extinction of the public debt now existing,
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there will be a corresponding reduction in the amount of interest to be annually paid, leaving each year a larger surplus.
It will have been seen, that it is proposed to meet the over due bonds by issuing other bonds, and, also, to fund the interest in arrear. There is every reason to believe that no difficulty will occur in effecting this negotiation. As evidence of this, I send you, herewith, a copy of a communication from Lewis H. Haslewood, Esq., of Lon- don,* chairman of a committee appointed at a meeting of holders of American securities, on which there are arrears of interest. The very liberal proposition is therein made, to fund all the arrears of interest, and the interest to accrue to January, 1867, inclusive, into a bonded debt, the sole condition being, that a sinking fund be established of two per cent. per annum. The amount of debt represented by Mr. Haslewood, is not stated, but is presumed to include all the sterling bonds of the State, which amount to seventy-two thousand dollars, and may embrace others. If foreign creditors be willing to fund not only our interest in arrear on the first of July last, but that accruing within eighteen months thereafter, can it be supposed our home creditors will hesitate to fund that accruing to the 1st inst .? Without an adequate sinking fund, you can not resuscitate, promptly, the fal- len credit of the State. With it you can. Unless it be resuscitated, you must either hawk your bonds about the money centers, and sell them at an enormous sacrifice, making a nominal rate of seven per cent. equivalent to from eight to ten per cent. and have your credit always depreciated; or you must greatly reduce your expenses,
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*Paper not found.
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GOVERNOR CHARLES J. JENKINS
including salaries, to a standard so low, as to banish from the service of the State, in all departments, citi- zens of sterling virtue and ability; or you must cause your constituents to groan under a weight of taxation, which, now, they are illy able to bear. To avoid these disastrous alternatives, earnest, decided action is dispen- sable; and it is high time that Georgia should adopt a judicious, stable, financial system. I recommend, there- fore, first, that you authorize the executive, as the neces- = sities of the State may require, and to that extent only, to issue bonds of the State, having not less than twenty. nor more than thirty years to run, bearing an interest not exceeding six per cent., for an amount, which added to the existing funded debt, not yet matured, shall not exceed six millions of dollars. Secondly, that for the payment of the interest, and for the creation of a sink- ing fund (accumulative) to discharge the principal of the debt, now proposed to be created, of two per cent. per annum on that principal, so much of the annual in- come of the Western and Atlantic Railroad as may be necessary, be sacredly pledged, and that this pledge be set forth in the bonds. Thirdly, that to the extent of this pledge, all appropriations hitherto made, for Stato uses and policy, of that income, (not involving the viola- tion of contract,) be repealed.
Should these recommendations meet your approval, it may be necessary to contract short loans, to meet pressing necessities; but these may be extinguished, as longer ones are effected.
EDUCATION.
Hitherto the State has aided the cause of education chiefly, in two ways, first, by the endowment of a Univer-
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sity, and secondly, by setting apart certain funds for distribution among the counties in aid of common schools. The case of the university is somewhat peculiar but readily understood. Its original permanent endowment was in lands, which, with the consent and approbation of the General Assembly, the Trustees sold on a credit, taking bonds and mortgages for purchase money. Sub- sequently, the State assumed the collection of these secu- rities, and assumed to account to the University for the funds as collected. In liquidation of the resulting trans- actions, the State transferred to the university, one thou- sand shares of the Bank of the State of Georgia, owned by her, the par value being one hundred thousand dol- lars. The trustees were expressly forbidden to sell or in any way dispose of this stock, but were by act of the General Assembly guaranteed perpetually, eight per cent. income from the stock; any overplus that might accrue from annual dividends, enuring to the benefit of the in- stitution, and any deficit of the eight thousand dollars, the State being pledged to make good. And this has often been done, no special appropriation being made in each instance, but the deficit always paid at the treasury by provision of the Act authorizing the transfer of the stock, and guaranteeing the annual income from it of eight thousand dollars. This guaranty was doubtless in- duced by two considerations; first, that, (as the history of the transaction spread upon the statute book shows) the transfer of the stock, was intended as a satisfaction and settlement of money collected by the State on the university bonds and mortgages. Secondly, because in making the transfer of bank stock the State assumed to inhibit the sale of it, which would have been unjust, with- out assurance of a certain annual income beyond all con- tingency. Deficits of the amount of the dividend, and
GOVERNOR CHARLES J. JENKINS 469
entire failures of dividends have always in good faith been responded to by the State. One of the results of the late war has been, the utter failure of the bank of the State of Georgia, and the consequent extinction of all possibility of farther dividends. But the obligation of the State remains unimpaired. There are, indeed, annui- ties, (for so they may be called) in arrear since the bank ceased to declare dividends. I am not aware of any purpose on the part of the trustees to urge, at this time of financial embarrassment, any claim for these arrears, and I trust they will forbear it for the present. But to the resumption of the payment of the annuity, they are clearly entitled, and without it, can not keep the univer- sity in successful operation. The late convention, hav- ing the history, I have here briefly detailed, fully pre- sented to them, and in view of the importance of the whole subject placed upon the General Assembly, a Con- stitutional obligation, to "provide for the early resump- tion of its exercises, (which had been unavoidably sus- pended) by a permanent endowment of the university." Relying upon the annuity of eight thousand dollars, the trustees have re-opened the institution, and I have, as you will perceive, in the estimates accompanying this communication, included this item. At as early a day as returning prosperity will permit, it will doubtless be the pleasure of the General Assembly to make the per- manent endowment enjoined by the convention.
In like manner I have included in the estimates, the sum usually accruing from dividends on bank stocks, set apart for the purposes of common school education. This like the other, and like the noble charities in be- half of the insane and the blind, is too important, and too sacred a charge to be permitted to languish and die
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for want of aliment, even in times such as these. I trust the time is not far distance, when much more can and will be done by the State for the education of the masses, and for the relief and comfort of those bereft of the natural senses, or still worse, of reason. Perhaps all we can do now, is to keep these institutions alive that they may hereafter receive proper nurture, and fulfil their missions.
LAWS REGULATING INTEREST.
I respectfully invite the attention of the General As- sembly to the whole subject of legal interest on money. There is no greater vice in government than governing too much. Undue interference with an individual's use of his property, or with transactions between individuals, wherein each seeks, without covinous practices, to ad- vance his own interest, always affects injuriously the general welfare. Hence, good governments do not seek to fix prices of articles, either of necessity or of luxury ; nor do they attempt to fix the compensation to be paid by one man for the temporary use of another's property. Money, or rather the use of it, is as distinctly a subject of value, and its value is fluctuating, as the use or occu- pation of a tenement, or the hire of a horse, or other chattel. Yet while rent and hire are left to be regu- lated by contracting parties, interest on money is fixed by law, and that law enforced by vindicatory sanctions. I am unable to perceive on what principle this difference rests. The usual pretext is, that the restraint is a nec- essary protection to the needy against the usurer. But does he require it more than another child of want, who can procure no sheltering roof for his family, by reason of the occasional appreciation of rents? Does he re-
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