: i
' r
d t
t
r
if r
I "
I f
i fi
m
I
iTbese : cortsidelatipfts ; cannot he lost upon a.
the
wilh (he course pursued. br Mexico, ( rll I people who have hever been inattentive to l
nn hesitation iVreceivuiff in the moat cn- I effect of I heir poller Upon the irtsuiouoorthey
cniatorVepirH the explanation offered, nd hie created for lhemM!jrei bu4t e prtent
Vhtrff' ronpnfpH irt new coritfen. moment their forcers aogmentea oj ine necessi
.MiJ'Intiii mtdi In in oil ivuna in 9 man. M "'"-' -J.fc . 1 4 ..
lwov.. , . . " vr TL.j ; 1 1 i cles sobieci w dmies.ahe aeiangeraente in me
-.- m m . - . mm m ; - . -r ' , .
Dtr nuicn wun rqiniiy just. iuiueai,'JyrM
deemed less onerous and . incoovenientj to
the" Mexican Governments-Relying copfi
dently upon ihe intentions of that Govern
ment, Mr. Ellis was directed to repair to
Mexico, and diplomatic intercourse has boerj
resumed between, the two countries. The
new. convention has, he informs us, beeW re
cently submitted by the President of i that
Republic iq its Congress, under circomstan
ces which promise a speedy "ratification a
result whip b I cannot allow myself to doubt.
. Instructions have been given to t6e;Ckri
missionerl of the United Slates under pur
Convention with Texas for the demarca
tion of the line which separates us from
tlfal Republic The commissioners of both
Governments met, in New Orleans in Au
gust last. The joint commission was; or
ganized, ind adjourned to, convene at! the
it
same. place on the twelfth of October
is presumed to be now in the performance
S 1
has
of. its duties.
:il The new Government-of Texas
shown its desire to cultivate friendly rela
lions with us, by a prompt reparation for in
vines complained of in the cases of two
vessels cl the United Males. , . ; JL ;
1 AViih Central America a convention has been
- concluded for the renewal of its former treaty
w'tih the United Elates. This was 'not ratified
before the departure of oar late Charge d'Af-"
4 fa if es from; that country and ... the, copy j p( f it
brought by him was not received before the ad
journment of the Senate at the last session.; In
. the mean while, the period limited for the ex
ehangs of ratifications having expired, 1 deem
ed it expedient, in consequence of the death jof
j. ; the Charge d'Affaires; to send a special agent to
Central America, to close the affairs of our mis
sion there, and to arrange with the Government'
fan extension of. the tioie fur the exchange i of
raiificaiicns. ' i f !
The com mission created by the States which
formerly composed the Republic of Colombia,
for adjusting the claims against that Guiern-
. ;ment, ha9,- by a very unexpected construction of
the treaty under which it acts, decided thjatjno
provision won made fur those claims of dozens
of the United States which arose from captures
by Colombian privateers, and were adjudgied a-
; .gainst the claimants in the judicial rribanals; -
1 his decision will compel the United 5tae9 to
apply to the several Governments formerly uni
ted for redress. With allhese New Grana
da, Venezuela, and Ecuador, a perfectly I good
-understanding exisiy. Our treaty with : Vene
zuela is faithfully carried into execution and
that country, in the enjoyment of tranquility! is
gradually advancing in prosperity under the
guidance of its present distinguished President,
General Paez. With Ecuador, a liberal Scom-
. inorcial convention has lately been concluded,
which will be transmitted to the Senate at an
early day. : 'p-C ' ! !::fr
. VViih the great American Empire of Brazil
our relations continue unchanged, as does pur
friendly intercourse with the other Governments
cf South America-r-the Argentine Republil, and
- the Republics of Uruguay, Chili, Pero and Bo-
li via. The dissolution of the Peru-Bolivian
Confederation may occasion some temporary in
convenience to our citizens in that quarter but
the obligations on the new Governments ivtiich
hare arisen out uf that Confederation to observe
its treaty stipulations, will no doubt be soop ion
derstoiHl, and it is presumed that no indisposition
J5w;jU exist to fulfil those which it contracted with
jhe United Stales - r fj J ;.
UlThe financial operations of the Government
iurtng the preseni : Vear have, I am happy to
y , b.'en very snccessful. The difficulties un-
- which the Treasury Department has labored
IV um known defect in the existing laws! relative
lo tliB safe keeping of the public moneys, aggta
td by suspension of'saecie payments by tiever-
al of the banks holding public deposites, or in
debted to public officers for notes received iti pay
jmcnt of public iues, have been surmounted to a
very gratifying extent. The large current ex
pendttured have been punctually met, and the
flail h- of the Guvernment in !I its pecuniary
concerns hssbeen'scrupulously maintained f.
I j The nineteen milliuns iof Treasury notes an
llhorized by thej acf of Congress of 1837 and
j the modiftcativns thereof, wilh a view to the in
jdulgenee of merchants on their duty bonds, and
I the . dep)8te banks in j the pavment of public
ImnnOVfl fltr Ku'ltiom -KtttfA haon en iitlflnlnqlltr
J l WJ .uviu, H.l WVVII I' UIIV.IUU1 1 J
redeemed as to leave less than the oririna ten
milliuns outstanding at any one time, land line
whole amount unredeemed now falls short of
three millions. Of these the chief portion is noi
due till next year, and the whole would) have
been already extinguished could the Treasury
have realised the payments due to it from the
banks. :if lihse due from them during the next
year shall be punctually made, and if Congress
Inau Keen ine appropriations witntn ine esti
'mates, there is every reason to believe that all
jlheouistahdihg Treasoty notes can be redeemed,
jana ine ordinary expenses defrayed, without im-
' tvitilnrr nV I k a rmnnla antt aJllinftiil ImiJ. ..il.
! B " v 'vl BUUIIIUUll UU1UCU, Cllll
er of loans or increased taxes. !j
txT vpll this; and to keep .the expenditures.
jwiinm reasonable bounds, is a duty, second only
jin iioixrtance to the preservation of our national
tcharactejr,1 and the protection of our citizens in
theit civil and political rights. The creationJ
in. lime 01 peacp, or a debt likely to become per
jmanent.ps an evil fur which there Js no equiva
lent. i,ne rapidity ,with which many i of the
States are appHreotly approaching to this condi-
tton, auraonisru-s us or our own duties, in a man-
per iw ijaapressive to be disregarded. Oi?p, not
ine leasi important, is to keep the Federo Gov
ernment always in a condition to discharge, wilh
ease and -Vijjor. its highest functions,! shoulij
tneir exercise be required bv anv sudden con
jurieiure uf public a (fairs a condition to which'
we are always exposed, and which may i o-cur!
ntu 11 .5 if5i eipeciea. 10 this end. it 13
indispensable that its finances should be ohtram--
melted, and its resources, as far as praciiciblej
....iuuuriru. au circumsnnce could; present
greaur obstacles to the accomplish ment Jof these
.viiaiiy impoitant oojects. than the creation of sn
onerous national debt. Our own experience, and
.also mat ol other naiions have demonstrated
yUhe unavoidable and fearful raptdit? with, which
a public debt is increased, when the Government
has once surrendered itself to the ruinous nrac
'ice of supplying :ts supposed necessities hy mw
loans. The. struggle, therefore, on oir art. 16
:be successful, must be made at the threshold
jTo make oor .-efTurts effective, severs economy is
iier;c94ij. uis is iue soTesi provision; ior tne
oneratioos of internal tradei and especially the
reduction gradually taking Iace in onr tariff of
duties, all tend materially lit lessen our receipts
indeed it is probable tatllfie diminutin result-;
rig from the last cause ajotre, will not fall ahurt
of five millions of idollarsj irf the year 1842, as
the final reduction of aU duties to twenty per
cent, then takes effect j 'be whole revenue
then accruing from the customs, and from the
sales of public lauds, if not more, will acdoubted
I v be wanted to defray the aecessary expenses
of ! the Government under the most prudent ad
ministration of its affairs. These are circum-t.
starices that impose the necessity of rijid econo
my, ano require its prompi aoa onsiaoi ccr-
ctse. vv tth the Legislature rest tne power and
duty of so adjusting the public expenditute as to
promote this emfJ! By the provisions of the Con
stitutbh,it is only in consequence of appropriations
made by law, that money scan be drawn from the
Treasury ; no instance has occurred since the
esiaousnmeni 01 tne uovjernment in wnicn ine
Executive, though a component part of the Le
gislative power, has interposed an. objection lo an
appropriation bil inn the bole ground , of its tx
travagance. His 'doty in hjs respect has been
considered fulfilled by requesting such appropria
tions only as the'public service may be reasona
bly expected to require. In the present earnest
direction of the public mind towards this subject,
both the Executive arid the: Legislature have ev
idence of the strict responsibility to which they
will be held ; and; while I jam conscious of my
own anxious efforis to perform with fidelity this
portion of my public functions, it is'a satisfaction
to! me to oe aoie to count on a coraiat co-opera-
"1-
sioD.s iti our xislipg laws -whichi relate, to the
sale aod transfer of -American vetsels, vihile. a-
broad, are extremal ifs defective. s Ad vantage has
been takn of these defeats to give to vessels who!
lyt belongi ng to fomgners a nd a a vigaiing " 1 1 e
ocean, an apparentrnertcan 1 ownership his
character has beet) SQ well simulated as to afford
themcomparative seicurityio prosecuU ng the slave
trade, a traffic! cmjpKati;aIly denounced in cor
staluteseoardled witb abhorrence jby bur citizens,
and of which the effectual suppression is nowhere
more sine rely desired than 'in the U. States.
in charge of the
1837, wlien'a paitial one, occurring within
thtrtj months of ihe former,- produced new
ard serious embarrassments, though .it tad
no palliations In such circumstances as were
pledged in justification of that which had
previously taken place.iThere; wa!s nothing
Th effort:, male fnl the ksee tt condition of the country to endanger
well manageu oansing msutuiion com
roerce was deranged by no foreign war; ev
ery branch 01 manuiacturing industry
lic'monev aftet wards collected!
public riic:ersMTMl,e securhies for its safety,
w hich this Irrqred,' wre aj piiocipal "cause w
III Cliing, au una ccNivu ui , vuugipo ,
bo in con Wquence iof a disagreement between
the two Houstti' teither than!, nor at aoy sob-
sequent penoo, oaa itiere oeenpny legisjaiioa ,ou
the subject. J 11 tt;t euort maJe at the last ses
sion to obtain the anthdrity of CongTess to pun
ish the use 01 puniic money for private purposes
as a crime. a measure attended! under other Got
ernments jwiib signal advantage, was also j un-
These cir eumstancf s make it : proper, to recom-1 successful,' from'civerslties of lopinion io that bo-
mend to your early . attention a careful revision of d)t not wiihstanding the, anxiety doubtless fell
these laws, ao that without impeding the free- J) it to afford eVerj ;! practicable ;securily.irhe
dom & facilities of pbr navigation, or impairing an rejsolt of this is stiff toleave: the custody of: the
important branchof r lodustrjconoected with it, public money Without t those safeguards Which
the integrity and honor of our flag maybe carefully have been! fat several years earnestly desired by
preserved. Information derived from our Con- te Executive ;' and as the remedy is only to be
sol al Havana, shoeing the necessity of this, found in the action of the Leg slatore, it imposes
was communicated Jtoi a committee of the Senate on me the duty of again suba itting to you- the
near the close of I be last session,! but too late, as propriety bf passing a law, pit viding for, the safe
it appeared, to be acied upon. It will be brought keeping of the public moneys and especially 10
to your notice by ; the proper department wiihjak that its use for private purposes by any effi
additional commuQications from other sources. , c$n entrusted with; it, . may; he declared to be a
The latest accounts from the Exploring Expe- j felony, punishable with penalties proportioned to
dition represent it as proceeding successfully in
its objects, and promising results no less useful to
trade and navigation than to science, t "
The extent of ; post roads covered by mail ser
ine magnitude of the offence
1 These circumstances, added! to known defects
iti the existing laws, and unusual derangement in
the general operations of trade, have, daring the
1
linn frnm vnn I
I At the time I entered upon my piesent duties,
our ordinary oinu$emenis-wiinoui including
those on account of the public debt; the post of
fice, and the trust funds in charge of the Govern
ment had been largely increased by appropria
tions for the removal of the Indians, for repelling
Indian hostilities, and for other less urgent ex
penses which grew out of an overflowing Trea
sury.; Independent jof the redemption of the
public debt and trusts the gross expenditures of
seventeen and eighteen millions in 1834 and
l 833 had, by these causes j swelled to twenty
pine millions in 1836!;' and the appropriations for
1837, made previously to the fourth of March,
paused the expenditure to rise to the very Jarge
amount of thirty three mill jops. We were ena
bled during the year .lSSSinot withstanding the
continuance of our Indian ernparrassments, some
what 10 reduce this amount and that for the
present year, 1839, wilj noi in all probability ex
coed twenty-six!) millions-or six milliot.s less
lhan it, was last ear.: Vilha determination so
par as depends on me to continue this reduciion,
1 have directed the estimates for 1840 to be sub
jected lo tbe severest scrutiny, and to be limited
to the absolute requiremects of the public service
They will be found less than ithe expenditures of
1839 by over five millions of jdollars.
The piecautiobary measures which will be re
commended by the Secretary of the Treasury,
to protect faithfully the public credit under the
fluctuations and contingencies (to which our re
ceipts and expenditures are j exposed, and espe
jcially in a commeiciaf crisis like the present, are
commended to your early attention.
I Un a former occasion your attention was invi
ted to various considerations in! support of a pre
emption law in behalf of the settlers on the pub
lic lands ; and also of a law graduating the pri
ces for such lands as had long been in the market
unsold, in consequence of their inferior qualitv.
The execution of the act which was -passed on
the first subject has bee nj attended with the
happiest consequences, in quieting titles,' and se
curing improvements to the industrious ; and it
has also, to a very gratifying extent, been exempt
from, the frauds! which were practised under pre
vious pre-emption laws. Jt has, at the same
lime, as'was anticipated contributed liberally
duiing the present year to the receipts of the
treasury... , , j; - j.
1 he passage of a graduation law, with the
guards before recommended, would also, I am
persuaded, add considerably to the revenue for
several years, and prove in other respects just
and beneficial. ! 1j ill
Your early consideration of the subject is, there
fore, once more earnestly requested.
IfSSThe present condition of the defences of our
principal seaports and navy yards, as represent
ed by the accompanying report of the Secretary
of War, calls for the early and senoos attention
of Congress; and, as connecting itself intimate
ly with this subject, I cannot! recommend too
strongly to your consideration the plan submitted
by that officer for the organization of the militia
mi me uoi'eo oiates.
Hn conformity with the express wishes of Con
gress, an attempt was made in the spring to ter
minate the r lorida War,; by negotiation. It is to
be regretted that these humane intentions should
have been fiustrated, and that the effort to bring
these unhappy difficulties to a satisfactory eonclu
ston should have tailed. Hut, alter entering in
to solemn engagements with tqe Commanding
General, tbe Indians, without any provocation re
commenced their acts of treachery and minder.
The renewal! of hostilities in I that Territory
renders it necessary! that I should recommend to
your favorable consideration the plan which will
be submitted to you by the Secretary of War, in
order to enable that department to conduct them
to a successful issue. I j
Having had an opportunity ot personally in-
vice on the first of Jniy last, was about 133,999 last three years, much increased the difficulties
miles, and tbe rate pf annual transportation upon aitendanton the collection! peeping, and is-
them 34,496,878 miles. Tbe number of post bprsement o( the revenue, anjd called forth cor-
offices on that dayf was twelve! thousand seven resporiding exertions from those having them in
hundred and eigbty and on the thirtieth ultimo, charge, j Happily these haveheen successful be-
thirteen ihousaud and twenly-eightr - ylond expectation. Vast sumshave been coljec-
i The revenue of ithe Post Office Department ted and disbursed by the several Departments
for the year ending; Mib tbe SOtb June last, was with unexpected cheapness and ease ; transfers
four million four bdodred and seyenty-iix thou- have been readily made to eyejy. part of the Un
sand six hundred j aid thirty-eight dollars ex:- i4n, however distant; and defalcations have been
hibiting an increas tover the preceding year of far less han might have been anticipated, fjom
two hundred and forty -one thousand five bun- the abscence of adequate legal restraints. Since
dred and sixty dolja(r8. The engagements and tpe onlcejrs of the Treasury and Post Office De-
Habilities of the Department for the same period pkrlments were charged with the custody of roost
are four million six: hundred and twenty-four ojT the public moneys received by them, there
thousand one hundred and seventeen dollars. have been collected sixty siij millions of dollars,
The excess of liabilities over the revenue for ahd, excluding Uhe case of; ilje late collector at
(he last two y ears :has been met out of the surplus New York, the aggregate amdunt of losses sua
which had previously accumulated. The cash tjained in! the collection cannot, it is believedr
on hand on the thirtieth ultimo, was about $206,- e'eed 6ixty thousand dollars,; Tbe defalcation of
01 95, and the cirjfeQt income! of the Depart- the late: collector at trjat citf the extent kod
ment Varies very! iili from the rate of current circumstances of which Cong ess has been fully
expenditures. Most of the service suspended informed ran through all the modes of keeping
last year has beenf restored, and most of the new the public money that have b en hitherto in use,
routes established M the act of 7lh July, 1838, abd was distinguished by an aggravated disre-
nave oeen eei in opera won at an annual cost 01 1 oara oil cuiy. mai oroKe mrougn ine restraints 01
$136,963. Notwithsjanding the pecuniary dif
ficulties of the country, the revenue of the De
partment appears tb hi increasing ; and unless it
shall be seriously .checked by the recent suspen
sion of payment by !so: many of the banks, it will
during the last
bear testimony
spectinz a portion pf the ' troops
summer, it gives me pleasure to
10 the success of the efforji lo improve their dis
cipline, by keeping them together in as large bo
dies as the nature of our Service will permit. I
recommend, therefore, thai commodious and pef
ojanent barracks be const ructed; at the severa!
Dosts designated bv! the Secretary of War. Not
withstanding ihe high stale of their discipline
and excellent police, the evils resulting lo the
service from the deficiency of company officers,
were very apparent, and 1 recommended that the
staff officers be permanently separated trom the
'line. . "'-!:' U '- I -1
The navy has been usefully ana honorably em
ployed iti 1 protecting the rights and property of
our citizens, wnerever ipe cunqiuuo 01 auairs
seemed to require its presence. Mth the ex
ception of one instance, where an outrage, accom
panied by murder, ; was committed on a vesserof
the United States while eDgagfd in a lawful
commerce, nothing is known to have occurred 10
impede or molest the enterprise our citizens on
that element where it is So signally displayed.
On learning this daring act of' piracy, Commo
dore Reed proceeded immediately to the spot,
and receiving no sausfactioo, either in the surr
render of the murderers or the restoration of the
plundered ptoperty, Inflicted severe and. merited
ejrery system, and cannot, iberefore, be usefully
referred to as a test oi tne comparative saieiy 01
either.! Additional in formal i(n will also be for
msbed by the report of the Sedretary of the Trea
sury, in reply to a call made upon that officer by
be able not onlytd Maintain the present mail ser- tfie House of Representaliyea at the last session,
vice, but in a sho t jtime to extend it. It isgrat requiring detailed informatior on the' subject of
ifvinc to witness the nromDtitode and fideliiv ilkfaultshv nnblie officers or agents under each
j 0 r ; - r r o - -
with which the agents of this Department in Admibisjirationi, from 1789 to J837. This docu
general perfrnx the!ir dutie. j ment ! will be submitted to yon in a few, days.
oome oimcuiiies pave arisen in reiauon 101 ine general results; imuepeuoem 01 me irosi
contracts for ihe transportation of the mails by
railroad and steamooat companies. It appears
mai me maximum foi; compensation proviaeo Dy
Congress for the transportation of the mails upon
railroads is not iBiifficient to induce some of the
companies to convey them at such hours as are
required tor ine accommoaauon 01 ine pnoiic' 11
is one of the most! important duties of the Geuer-
aruovernmeni 10 provide ana mainiatn tor tni
States the best practtca
l 'i arrive at that end it
ffice, which is kept BeparateTy, and will be
stated by itself,) so far as t they bear upon
tis subject, ire, that the osses which have
bjsenj and are likely to be, sustained, by any
class of agents, have been the greatest! by
bnks, including as required in tie resolu
tion, their depreciated paper, received !for
iliblic dues t that the nextllarg
bf disbursing officers, and; Ihe leastHjy-Coh
are
in
aye been
use of the people 'of the
oie man estaoiisnment. l i arrive at that end it 1 jl. ' Lnri rfl(.P;Pf. if ihe losses on du.
is indiensablejl)he; Post Office Department J fej rf are! ,ncluded, llfey alone willlbe
shall be enabled iloicontrol the hours at which h - , , ? . , ... !. j L
the mails shall W over the railroads, as it W "J?f e J ioin iT"eciD" "uuc"
now does over alii other! roads.! Should serious MHr81 Qat wh6(e experience, therefore,
1 ; aa . - i '!-.. t. . -( . 1 ii
inconveniences arise from the inadequacy of the furnishes the sirongesi eytaence mat tuejae-
, or irom, nn- 1 stiea legisiauon oijuugrrss laaiuua wui
to insure in those opefations the highest
compensation now provided by law
reasonable demands by any of the railroad com
4S
in
panies, the sobjecfs of such general importance degree of security and facility. Such also
as to require thepromp' attention of Congress aUpears to have been theejspenenceof other
In relation :osleimboatlinesi ihe most efficient p.k.k.-!Jr
iiHiiiiiin. riuui iiiDicauuaui iuuuii ivq iuquu
jvious and nas been eoggeaied ny tne ' T , 1 it ; w, 1 . f .
Gerieiral. ri! The War and Navy De- i ec etary of iheAeasury. in regard
already! employ steamboats in their toj tbe practice among thep, I am enabled
remedy is obvious and has been suggested by the
fostmaster
nartmenls
service, and although it is by no means desirable to;!StBle lhat in Iwenly-lwp out of twenty
. ..1 i- .!'! rriir ...11 !..-i- ! - H i ' ; L i ; t
mat ine uovernmennnouiu unaeriaue ine irans- seven loreign .Tovernmenjs, irom wmcu, im
portation of passengeis or freight &s a business, doubted iniorraation has teen oblained,!lhe
there can be no Ireasunable objection to running pijbtic mon:es are kept in charge of puhlic
uuaiS) icujj'ui ai ifj tt iiuciictoi it ui us uvwoooa I nC
rv In nnt Aunt n ::t I Ibnnl s at avtnrtiiiri A t!c. I
continued as soob as reasonable contracts can be
obtained. . tl ! If .1 II -i i !
as
crowned with rich rewards; and the more
than usual abundance of our harvests, after
supplying bur domestic 'wants, had left pur
granaries and storehouses filled with a sur
plus for exportation; j ! It i in the midst of
this, that an irredeemable and depreciated
paper currency is entailed uon the people
by a large portion of the banks. -They !are
not driven to it by the ejthibtiion of a loss
of public confidence, or of a sudden l pres
sore from'their! depositors or nole-holdersi
bat they excuse themselves by alleging thai
the current of, business, and exchange with
foreign countries, which draws the precious
metals from their vaults would require, in
order to meet! it, a large curtailment of their
loans to a comparatively small portion of the
community, than it will be convenient for
them to bear, or, perhaps safe for the banks
to exact. Tbe-plea has ceased to be pee
of necessity. Convenience and policy
now deemed sufficient to warrant these
slitutions in disregarding their solemn obli
gations. Such conduct 13 not merely an in
jury to individual creditors, but it is a wrong
to the whole community, from whose liber
ality they hold most valuable privileges
whose rights they violate, whoso business
they derange, and the value bf, whose ptop
erty thev render unstable ana insecure.
It must be evident that this new ground! for
bank suspensions, in! reference to which their
1 action is not 1 only disconnected with, j but
wholly independent of, that of the public,
gives a character to ; their suspensions more
alarming than anv which they exhibited be-
fore, and greatly increases the impropriety
of relying on the banks in the transactions
of the Government. ; J
, A large and (highly respectably portion
of our banking institutions are, it affords
me unfegined pleasure to state, exempted
from all blame on account of this second
delinquency.; They have, lo their great
icrjuii, noi oniy continued to meei ineir en
casements, but have even repudiated! the
grounds of suspension now resorted lot It
is only by such a course that the confidence
and good will of the community can be pre
served, and, in the sequel, the best interests
of the institutions themselves promoted
New dangers to the banks are also daily
disclosed from the extension of that system
of extravagant credit of which they are the
pillars. Formerly j our foreign commerce
was principally founded on Ian exchange of
commoditiesvincIuding the precious metals,
and leaving in its transactions but little for
eign debt. Such is not now the case. jAul-
ed by the facilities! afforded by the banks,
mere credit has become too commonly the
basis of trade. Many of the banks them
selves, not content! wilh largely stimulating
this system among others, have usurped the
business, while they impair the stability, of
tho mercantile community : they have be
they
deal
they
come borrowers instead of lenders
icers. I his concurrence ot opinion in
fayor of that system is perhaps as great! as
exists on any question of internal adminis
tration. .. . i ;: ( .
I In the modes of business and official! re-
slfaints on disbursing officers,no legal change
was produced by the suspension ot specie
payments, j jThe report lst referred to Will
bW found to contain also much useful infor
mation in relation to this subject.
j I have heretofore assigned 10 Congress my
reasons for believing that tbe establishment
of art independent Natibnal Treasury,! ad
Contemplated by the Constitution, is neces
sary (5! the safe action of the Federal Gov
Wnmeht. The suspension of specie pay-,
jments in 1837, by the bajiks having the cus
kody of the public money!, showed in so a
L ' . . r 1 . ! I t
parming a degree our aepenueuco uu moso
Institutions for the performance of dujies
required by law, that I tpen recommentled
(the entire dissolution T that connection.
This recommendation has been subjected,
M I desued it should beJ to severe scrutiny
and animated discussion; and I allow my
The suggestions jof the Po6lmasler General
relative to the inadequacy .of the legal allowance
to witnesses in leases of prosecutions for mail
depredations, merit your sericjus consideration.
The safety of the mails requires that such prose
cutions shall be efficient, and justice to the citi
zen whose time is' required to' be given to the
public demands pot .only that his expenses shall
be paid, but that he shall receive a reasonable
eompensatioo-H f ;: I j
The Reports from the War. Navy and Post
Office DepaitmlniSWill accompany this cam mo -nication,
and one from ihe Treasury Department
will be presented jtd Congress in a few days.
For various details in respect to the matters
in charge of these departments, I would refer
you to those important documents, satisfied that
you will find in hem many valuable suggestions,
which will be found well deserving the attention
of the Legislature, j j '
From a repbd made in December of last year
by the Secretary of State to the Senate, showing-
the trial docket of each of the Circuit Courts,
and the number jof miles each judge has to trav
el in the serfarrnartCA of his dutiea. a irreat ine
quality appears In the amount of labor assigned elf to believe that, notwithstanBing the ha
10 eacn juoge. voe DDmoer 01 terms 10 oe neio urai juiversiues 01 opiniop wuicu way ue pu
ib each of the Isoultacomposlnjf the ninth circuit, icipat4d bp all subjects J Involving such im
the distances between the places at which they LOTtaht considerations, if has secured in! its
sit, and from thepce totheeeaA bf Government, 0 &s generalJ a concurrence of public
are represented tci be such as o render it impos i ; - 1I1 L J a '
sible for the judgVof that circuit 10 perfi-rm, ina fenUment as could be expected on onej of
manner corresponding with the public exigencies, such magnitude. t
his term and cirpuit duties. A revision, there- Recent events have also continued to de
fore, of the present arrangement of circuits seems -elope new objections tojsuch a connection,
to be called for, and is recommended to your no- Seldom is any bank, under the existing ays-
lice. .itjl:- .. - i . , iero and practice, able to meet, on demand,
r fhintr 1 1 rirnnAr tn all vnnr attention In lh . . . . .
power assumed by Territorial JLegislatores to au
thorize the issue of bonds by corporate companies
on the guarantee of the Territory, i Congress pass
ed a law in 1936, providing thai no act of a Ter
ritorial Legislature incorporating banks should
have the force of aw until approved by Congress,
national welfare; and it is, at the same vine, the chastisement on the barbarians.
best pieseryative of the principles on which our It will be. seen by the report of the Secretary
institeiituis rest. Simplicity and ectniny in the,! f he Navy ! respectfngf the disposition of our
affairs of State have nevrr failed to chaiien and ships of ar, that ii has be en ,deWd necessary
invigorate Repuhlicao principles, while these! to station a competent f rle onthe coast of fri-!
have been as surely subverted by natiottiijl prodi- caj to prevtnt a fraudulent use of lour Uagbj3br
gality, undir vhtver specious prctexcisj it may ejgntrs. j" I p T I T
jnaye oaaa intrvduceu or foaiered. Ml ;
all its liabilities for deputes aod notes in
arculatioo. It maintains specie payments,
and transacts a profitable: business, only by
tjhe confidence of the public in its solvency ;
and whenever this is destroyed, tbe demands
rf it Hfnnitnrs and noteholders Dressed
but acts of aye exceptionable character pre- ra0re' rapidly than: it canj make collections
vioosiy passed py me L.egisiaiure 01 i-iorwa, rtoal it? debtors forcd tt to stop payment.
Th'S ISl iUu i loss of confident jwiih its consequen-
which bonds i may be issued to a very large a- 1 , J t j j.u ( 1
mount by those mstitotions, upon! the faith of the ces occurred in I$37, afforded the apol-
Territory. A resolation intending to be a joint Pgy of the banks for thr suspension. The
one passed jthe! Sefnate at ihe same session, ex- public thenl acquiesced :in! the validity of jbe
pressmcr the sense of Congress that the laws in excuse ; aridwhile the IState Legislatures
question ought npl; 16 be permitted to remain in d id nbt exact from them their forfeited char-
force unless amehdvd in many material respects, tlr. Coneress. in accordance with 1 the re-
: WW IF mZ r I T . ; ' . T !
ie House 01 nepreseDiauves mr -L'i:, A,nn nt .uff..,,,,,;.. lt,rl
want of time ' andlthe desired amendments have Ti!"" l'rJWr?r 'j " .2:
but it failed id the House of Representatives for
not been made. IThe interests involved tw-of fV" .fljH""." ""H-r j
great importance' and the subject deserves your
early and careful; attention, f t ; 1 C
-f The coniinoed agitation of the qnesiion rela
tive to the best mode bf. keeping and disbursing
It- : m ft . m . . ! rmm m f
tne puouc moneys sou injonousiy anecis tne ou
sioess of the cooriirv. The sospeosion of specie
held,.altliough compelled to issue Treasury
rlptes to supply the deficijency thus createdlxhaoging thai tor
i It now appears; that there are cine
lives than j a want !of public confidence on
dier which ihe banks seek to justify them
suspension of specie 1 jit- 1 , :r.nf tn ihm, nhlm.ttnn.
baJks, as prescrid by theadiof 1838, a source flj W, WntM
rather of embarrassment ! tha!n aid. and of ne- .relieved, in ai degree, fiPm the difficulties'
. 7 . , ! . t. -. S if !
establish their agencies abroad ; they
largely in stocks and merchandise ;
encourage, the issue of State securities until
the foreign market is glutted With them;
and, unsatisfied with the legitimate use of
their own capital and the exercise of their
lawful privileges, they raise, by large loans,
additional means for every variety of poc
utation. The disasters attendant on this
deviation from the former course of busi
ness in this country, are now shared alike
by banks and individuals, :to an extent of
which there is perhaps no previous example
in the annalof our country. So long as a
willingness of the foreign lender and a suf
ficient export of bur productions to meel
any necessary partial payments, leave the
flow of credit undi3turbed, all appears tn
be prosperous ; but as soon as it is checked
by any hesitation abroad, or by an inability
to make payment there in our productions,
the evils of tbe system are disclosed. The
paper currency . which might servo for
domestic purposes, is useless to pay the
debt due in Europe i. Gold and silver are
therefore drawn, in exchange for their notes
from the banks. To keep up their supply
of coin, these institutions are obliged to
call upon their own debtors, who payjlbem
principally in their own notes, which are
as unavailable tp them as they are to the
merchants to meet the foreign demand.) The
calls of the banks, therefore, in such emer
gencies, of necessity exceed that demand,
and produce a corresponding curtailment of
their accommodations and of the currency,
at the very moment when jthe state of trade
renders it most incooveniept to be borne.
The intensity of this pressure on tho' com
munity is in proportion to the previous lib
erality of credit and consrquent expansion
of the currency ;! forced nales of property
are made at the time when the mean? of pur
chasing are most reduced,! and the worst ca
lamities to individuals are! onlv at last ar
rested, by an open violation of their obliga-
grcat extent, lo fo!K.
notwithstanding its :
immediate creditor?,
ulat community m
This dependence f
portion to the extent
Hon and deposites.
in its own vicinity, l
nect it wilh the c
banks may fail, v. it
those in our princi p . "
the failure of the htt
ilies of the Union T
York, in 1837.
exceptions, followed -
that recently at Phil
fected ihe banks cf f
a similar manner.
whole banking systr
a few large cities, is i
of their organization,
and exchange. Tl
which currency fl j.,
quired in payment?
the power of ccr.tr;
whence it comes, v "
means of restrain);
ue of individual pre
If of trade, through
country, are made t.
bad management cl t
in the great seats cf ;
But this chain i f
stop here,. It doc
delphta or New Yc:
ocean, and ends in
the credit system. '.
which give to the I
les power over tho
the United States, i'
turn, to the money
It is not denied tL:'.
New Yoik Banks i
lowed in quick sucv
Union, was Prod u c
that power ; and it i
tenualion of the pre
a portion of our I--,
ments have arisen fr
From his influenr
escape, for it has il
ctes of he fwp ccur;
he current of rade ar !
in London, and js i
ble by he large
our merchanfs. cr.r
It is hu9 that an t. '
ino he most dtsfa?J c
bustness of Zhaf vtl!
he mortey power in I
every new deb whic!
try, seriously aiTecs t
ends over he pursu
erful influence. Wt
making new banks, q
tonal. The same c
exttng to the cnr
"credt, mus equally l
lion, we create. If h t
his system "has been
have been made fully
tendency to subjecf
rency to a vast cor.r.
land ; and il adds a i.
tlfusrae their precar
ed tn he first pfar t
men, and again by 11
tufion which connect
trade in our own cou:..';
beyond all fhi9, to I.
ores policy, necr ? ,
those who control tl
sort to. I mean r.U
measures present or j
courage he prosccti;.
iiig bween the fvvu c
cal benefits ; but it I .
ifesf ha he poH er ( i
tar injuries, is, by .
currency and credit I:
tending' their conse j 1
cations of our banking
indirectly obtaining, j
are used as dep is; . !
a dangerous politic:;!
States, I have deet:,
subject to your notice,
consideration.
; Is an argument tr
tof ihese facts, to si, 0
our banking i n 3 1 i t a i i
public money ? C
to encounter the ri-'.
mutual mismanage-,
to place our foreign a
under the control of 2 ;
To do so is tp irn p a i r
Government, as the i
already impaired the :
It is to submit all
whether of peare . r
thwarted at first by j
a power abroad great; .
not bring myself to
which this Govern;:
sooner or later reduf
ing their rights are !
those who may have s
4o impair thern.
Nor is it only in r
state of things on il
ern mentor v'f ourt.
itself for censidera''
in its relations to tl.
try. The time .i r
ciency of foreign ci
profitable! market
but now we await
ihe news of the I
from motives cf r
fearful lest its ar.iic!
the field of credit i
volumes to the parr.
lions by the banks, a refusal to pay specie! cent, wise, or j
for their notes, and an imposition upon the
community of a fluctuating and depreciated
currency. '. ..- - . j .
These consequences are inherent in the
present system. They are not influenced by
the banks being large or small, created by
National or State Governments. They are
the' results of the irresistible laws of trade
and credit. Io the recent events which have
so strikingly illustrated the certain effects of
the laws, we have seen the bank of the largest
capital in the Union, established under a na
tional charter, and lately strengthened, as
we were suthori
aiitely informed, by ex
a State charter, with new
and unusual privileges in a condition top,
as it was said, of, entire soundness and great
prosperity not merely unable to resist these
effects, but llie first to yield lo them. ,". v ,
-Nor is it to be overlooked that there ex
ists a chain bf necessary dependence among
accent experience balahown 4hat ihe provi- cessity placed the -cgafody of most of the peb-' occasioned by ihe geiral suspensron! of these institutions wblclCObiigesabem, lo a
IU5 1
letr for interesia tie:
than for ihe general j
try and the profit'. '
produce of our labor
The circumstat:'
verted appear to n. -developed
by late t v
which I have on f r
submitting to your
cernment ihe pro; ri
dy of ibe public rr-t r
Nor has any ihit -opinion,
ihe force f
urged. The only z
can.be desired by il
which they may rr :
w mid be regarded i
trust, or a crime f
it may be reas ;nl' ,
last, it is not alt - -consequences,
l.u ;
to he latter. Ti
public'money to te ?
is believe to be p
exist scarcely any