Mr. Speaker, and the House, went into the Senate Chamber, and his Excellency the Governor then made the following Speech to the two branches of the Legislature.

Gentlemen of the Senate, and Gentlemen of the House of Representatives.

Before I offer any new business for your consideration, it is proper you should be informed what has been done in regard to divers matters, which have already been the subjects of your Acts and Resolutions. Accordingly I would inform you, That another Commissioner is authorized to settle accounts between the United States and this Commonwealth, and will probably be here in a few days to enter upon the duties of his office. It may be expected therefore, that that business will be brought to an issue as soon as it can be: and this expectation is supported by a letter from the Secretary of Congress, who writes me, that from the progress made in settling the accounts between the United States, and individual States, and private creditors within the same, and from the measures taken to hasten and facilitate the progress of such settlement, there is reason to hope, this great work will soon be compleated.

With regard to the line of jurisdiction between this Commonwealth, and the State of New York, so far as it respects the Eastern boundary of the latter, our Delegates, to whom as well as to Governor Clinton, I sent an authenticated copy of the Act of the General Court empowering Commissioners to settle that line, write me, that the Delegates of the two States had met on that business, but had not then been able to agree on suitable persons as Commissioners; which makes it probable, that Congress will have the appointment of the Commissioners, pursuant to the mutual Acts of the States, without any such previous agreement.

With respect to the conduct of New York, relative to the Western Territory claimed by this State, I wrote, agreeably to your request, to Governor Clinton, and to our Delegates, concerning it. A conference between them was had upon the subject. The substance of it you will find represented in a letter from our Delegates: in agreement with which, Governor Clinton informs me, that according to the duties of his office he shall not fail to lay my letter and the concurrent Resolutions of the

Senate and Assembly, before the Legislature of New York, at their next meeting; and that the earliest opportunity will be embraced of communicating whatever they may direct on the subject.

In compliance with your request, Gentlemen, expressed in several Resolutions the last session, I transmitted to the several States in the Union, a copy of the Act you then passed for regulating Navigation and Commerce. It was accompanied with a circular letter of mine to the Governors of those States respectively in which letter, among other things, it is represented, that it is much to be desired, that Congress may be vested with a well guarded power to regulate the trade of the United States; which being effected, our Act will cease to operate: that in the mean time we have a full confidence, that the mutual friendship of the several States towards each other, and their sentiments of honor and justice, will be a sufficient pledge, that when measures wisely calculated to defeat the unjust designs of any foreign power against the trade, or general interest of the United States, are taken by any individual State, they will be adopted by all; so that no one State may be left to suffer essentially in its own trade by its laudable zeal and exertions for the common safety. To this letter the Governors of several States have replied, that they will lay it before their respective Legislatures at their next meeting. With respect to the Legislature of the State of New Hampshire, I have the pleasure to inform you, that with a generosity and magnanimity becoming one of the United States, and which I am persuaded the rest will not be backward to manifest, they early passed an Act correspondent to ours for regulating Navigation and Commerce. Such correspondent Acts, adopted by all the States, would be productive of happy effects, until Congress should ordain regulations for the general commerce of the confederated body.

In regard to the enlargement of the powers of Congress, I signed and forwarded to our Delegates, agreeably to your request, the several letters you had prepared on that subject. They viewed it, and justly, as being of great consequence; and wishing their sentiments on it might be known to their Constituents, they have, from a sense of the duty they owe them, delayed taking any measures concerning it, until they shall receive your further instructions. The reasons of the delay, their

letters of the 18th of August, and 3d of September, will inform you. This being a matter of a great importance, will require your attentive consideration.

There are divers other things, that have been the subject of the Acts and Resolutions of the General Court ; and the state of them, will be communicated to you by

message.

I shall now lay before you several matters, which you will probably think require your immediate attention.

By a letter I have received from Mr. Secretary Thomson, of the 24th of August, it appears, that it is become necessary and essential to the harmony of the Union, that Congress should be furnished with the means of settling the proportion, to be borne by each State, of the general expences, that have been, or may be, incurred for the common defence and general welfare. And I am requested to bring this subject again under the view of the Legislature of this State, and earnestly to recommend to them, as they have adopted the new rule of apportionment, to take speedy and effectual measures for numbering the inhabitants of this State, and make a return thereof to Congress. As by that letter it seems probable, that the new rule will be adopted by all the States, I do, in compliance with the request, earnestly recommend to you, Gentlemen, to take speedy and effectual measures for the said purpose On a former requisition of Congress, an Act was passed the last year upon the principles of the rule mentioned in the eighth article of the Confederation; by which Act, the number of the inhabitants in the Commonwealth, was ordered to be taken pursuant to that requisition, and returned by a certain day into the Secretary's office. Accordingly a great number of towns, but not the whole, have made return. Perhaps the carrying that Act into full execution relative to the number of our inhabitants, will answer the intention of the new requisition.

With the said letter were enclosed several Resolutions of Congress, and particularly one of April 18th, 1783, to which a further attention is intimated to be necessary, for the purpose of establishing permanent and adequate funds, which shall operate generally, and in just proportion towards doing complete justice to the public creditors, and for restoring public credit: and it is observed in the letter, that every day's delay increases the embarrassments of the Union.

By a Resolution of Congress of the 27th of September, you will observe, Gentlemen, that for the service of the present year, and for the payment of one year's interest on the Foreign and Domestic Debt, and other purposes, it will be necessary, that Three million dollars, in addition to Six hundred forty-nine thousand eight hundred and eighty dollars, be paid into the common treasury, on or before the first day of May next. These two sums are the whole amount of the present year's estimate; from which the latter sum is deducted by reason that so much of the Dutch loan was applied towards a discharge of the last year's estimate, and which the sums required from the States last year will replace: a compliance with that requisition being relied on by Congress to discharge, or make good, the said deduction. Our quota of the Three millions is set at Four hundred forty-eight thousand eight hundred and fifty-four dollars; for the seasonable payment of which, it is incumbent on you, Gentlemen, to make the necessary provision.

As a motive for the cheerful payment of the sum now called for, as well as of past arrearages, the States are reminded, that Congress have passed an Ordinance for the survey and sale of the Western Territory of the United States; and that the proceeds thereof will be applied as a Sinking Fund to extinguish the Domestic Debt. Future requisitions for interest on the Domestic Debt, will therefore be reduced in proportion as this Fund may be rendered productive.

Your attention, Gentlemen, is also called to the state of our own particular Debt, and to ways and means of discharging it. The total amount of it, by the Treasurer's account is, One million four hundred sixty-eight thousand five hundred fifty-four pounds, seven shillings and five pence, and the annual interest of it is Eighty-eight thousand one hundred and twelve pounds, thirteen shillings and three pence. The means of discharging the debt are, the product of the Impost and Excise, which from June, 1784, to June, 1785, was Fifty-seven thousand three hundred and fifty-three pounds, thirteen shillings and eightpence; and the one per cent. on the business of Auctioneers, which for the same time was Eleven hundred seventy-three pounds, eleven shillings and six pence. These products, with that of the new Impost and Excise, may be estimated equal to the interest of the Debt: in which case,

whatever sum you think proper should be annually raised by tax, or in any other way, will, after deducting the common charges of Government, discharge so much of the principal of it. By my direction, the Treasurer has formed a Plan and Calculation for the gradual payment of the whole Debt. According to that Plan, an annual Tax of One hundred thousand pounds, with the aforesaid revenue, as above stated, will cancel the whole Debt, both interest and principal, in fifteen years; and at the same time pay the ordinary charges of Government. Such a tax, with the annual requisitions of Congress for our proportion of the National Debt, will not be distressing to the State, especially as in the future requisitions there probably will be provided certain facilities of payment, in like manner as there are in the present requisition.

Punctuality in the payment of taxes is so essential to public credit, that the existence of the latter depends upon it. To insure it, I would recommend to your consideration whether, in future Tax Acts, it should not be provided, that in every town, on each person's tax, not paid by a given day, interest should be required from that day to the time of payment. This requisition would be a stimulus to punctuality, which would be further excited by an allowance of five per cent. for prompt payment. Such a charge of interest is due to the Commonwealth at large, and justice demands it, with regard to those towns and individuals, who have been, and are, punctual in paying their taxes.

There is a large sum now due for past taxes, the greater part of which is appropriated for the redemption of New Emission Bills, and of State Notes payable in 1784. When these taxes are all paid, there will remain, after making an allowance for those appropriations, a considerable balance, perhaps about Eighty thousand pounds, subject to your appropriation. The honour and faith of the Government being plighted for that redemption, the reminding you of it, I am persuaded, will procure effectual measures to be taken for the payment of those taxes.

On the present year are laid several taxes, amounting to a large sum. They are appropriated for the payment of such a part of the Consolidated Notes as becomes due the present year; and for the redemption of the remaining army Notes, including such of them as will be payable the next year.