J tn tim si vrfHi rui.iiy , 1 in he limit i In
iho uliwilole req iife'n,-iiu !, t.i!i!ir ti-ivic.
Tix'V will lm l I'V lh.n t'tk expenditure of
ls:3 by .v-r fivfi iinlli'iiiii iil'ililMrt. '
The precaulinintrv iiiciisuie a 'winch will be re
commended by jba rerctury of llie Treisuryj to
protect fuitfiTuliy the public credit vimler llie tlictu
tttinns and contingencies lo which our receipt nod
Jipenditure are exposed, ami especially in a cnu,
merdal erisi like the present, are coiiiiinsiinuJ to
your early atteniion. ,;,
. On a firmer nreaaiiM your attention ti .int
KJ Nj vari ru ciiiwiilfirHniini wi ii(tv.rl ol a pre
mpiton law til behalf of Ihe etileM on (he public!
lands mid also ol a law graduating the price tr
ueh land as had lory been in the narkt unsold,
in consequence of tfmir jnfcrWrTi'uliiy 1 be cx
eeution of the acl which waa passed on the first
object has been alteuded with the happiest conse
quence m quieting title, ami aecurirg improve
ment to the industrious; am) it has awn, lo a very
(jrulifying ealKtit, been exempt froin'lthe frauds
which were practised under previous pre-emption
law. It haa, at the rima tune, a was- antictpa
tad, contributed libu'rully during the present year
to the receipts of the I reusury. .
... The pasaMj-eof a gradutinn law, wilii the guard
before recommended would also, I am pnrsuided,
- I(tf e')flgW?faril)rtiri!i rewimi fur aMwrat-yowf,
- ani prove in other respects just end wmebciul.
; Your early consideration of the subject is, there
foreearm-stly requested.
Thn pmfiit condition of the defences of our
principal seaport and navy yard, as represented
by the ccrwhpaTiv.infjr tk44-4hT8tSSMif!.of
War, calls fur the nrly and furious attention of
Congress; and, as cotuttifstuig .itself iutiinatuly with
thfl subject, I cnnmit-wcnrnnrwd oT-iitrrwKly' tw
your consideration the plan subjoined by that fF
cer fir tbeN organisation of the imtlitia (if the Cm-
led lutt'.
III conformity with l'io enjire'scd wi:slcs of Con
gress, an attempt was innde in the cpriii'iy n-rmi-unto
the Florida a sr. by iii''kihIido. fiKtobe
rejrcticd lht thrae humaiicjiiiHiitioiw should mvj
been frustrntil, end thuUhe ert to brine hes"
unhappy ditiii.'uliios to a sitisfjctnry conclusion
should have I lil'-d. Hot, nlier enteriiiK into so-
. . leuitt eiigauiiieuls with thn L'otnrnarultii 'Ji.'nernli
the Indians, without any provocation, recoinmenceil
their acta ottruaclMsry and mornTrr f h rrmmt
of hiwtiliiii's in that Territory tendtirs tt newsssry
Snt I limit4 fifnmmrtiilh vtmr ftfTHli!e e.HiHii i
ration thn plan- wtitcti will, ba suti'intiun to you oy
ie Socrulary o'f War, in order to euahleC I hut do
"" )Wfmcnt to ciniie them li a aucretMful iasuo.
. , ' ft are the president's retnarka on the rmy
nod nxv, and the exploring expedition j Which, a
they coii!aiu nothing new or very ioiporiHin, and
- liektornijaNHr nnwn wo ntwiu BB4rij--
TIm estou'f P'Mt riMulsciiviril-'by'''fliatl''iHr
trlcefeW'lho -'or1W,HaKirt8ll.,9W
miles, ana inn r not aninni iranoiiiiimii upon
llio n 31.490 ihile. The n-lmher of dim! ofli
4-es on thut d iv wastVelve IliiMjsnod tcven Imiidred
nd ipyhlv, aiid onllii tlnrtielh ullimn, tliir'teeo
tliiMiaoU and twenty-eigh
. Tii; revuuuo of iha l'.i").rifo D-parlmnnt f ir
the year ending with the 3?Hh of June kit, was
fair million four liundred and stSyiuy six ihouiciiid
an huiidred au l Imriy ei'iiiil illnrV ethiiaioig ah
inersase- over 4bo yrnewheg yens otw t huodewl
and forty omMhouMud five hundred aftd sixty ilol-
'Itfrs. Tho t'p','!iRiieiil and li:il.ililu' HKlhe Dtj
'. ixar1ibcMiF"U!Mme pwiOi,a;a i"uf niilliua six
- iiiimla'd and twenty-four thousand one hundred and
- seventeen doihira. ' " ' " y T " .
last two yitur has been met out of ihe surplus
which hail prKfioiuly nixuinuliiled. j'ha chs.'i on
Imndonihethirliuibu'lUnio.waf NlMMilf'.'OO.TOl 05,
bh1 thn ciirroiit incouin of the Di'parlimiuUvsriea
ory Jiitja,-.Froin iha tato oi current epeniiitireiaj'
.ilH of the servtro isMjieiiiM Inst- year has hnen
restored, and wiett of (he new najlea estuhlishcd
iX .tltoBCj.oC2j U JubflSIIS. Jiave beit.;tjUUiueJ
ralnm al an annual cost ol ?130t).'):i. Noiitl
atan lmg llie1 p fCun nry diiriculiioa of die cnuiitry,
the rovi.'iiue of'thu D.iprliiicut appeara tn bo in
mag f d ouleas it sliall ba aeri-Mily ;Ium'U4
"ujniiii re'iTTTwVj"iTnTol
piyuieolby ao omnv
-of tlta bank, tt wH bw-wW
lend it. it isgraiifiiigtowiiu-ssiheproini)iitu1ii
v ,. and li'lutity with which lh agvnia of this L)o(arl
2" Uient in general poifnrm their puhlio duties. ,
guiiM) dilHi-utiit's have arisen in rehitmu to con-
tracts Usr theTraiispuriiiliniiofllie niail bv rSTTrnail
"oiid stoaiiils'iStuiripanr.' Tl "ipjieara lhat ili
Itiatiinuui of co.iifieiiitatiii pruvnh.'J by Congrena
for the transprtiiiioii of thn mail upon railroad
is iml ski iridoiit tn induce some of tha ennpiiiim io
onvey Ihent at o noh hours as are required for the I
acciiinin.Hlatiou of the public, li is one of ihe timst
important duties of the Unern Gofemment tn
provide and manil tin fir the use of Ihe people of
the Stale th best praciicablo mail eiiaMihnmiit.
. To arrive at thai end, it u in.liS'utuibln that, the
Post OnVe D'p.irtieeut shall bo en ihled Ju cmiIk!
irhntrri-iir wlrtctt thw-trnrla-stni tt tw carriw tiver
railrnsds, as il now d over nil other roads
Should serious iiiciuv.mie:ics ansa (nun the imule.
qnaey of Ilia cnuliJ'isii m llnw pruvided by
or trin unreasonable oom mas by any ol llie r.iilrond
companies, tbe subject ia of such gooeral importance
as to "require the promjil ailennoo of Co .giis
Iu rcl.iit.iii tn st amb nit lines, thn most olliiient
, remedy is obvious, and hss b-ert aigeieJ by the
roalmastur Ltmierai. I lie ar ami iavy ifo.
partmonla already emptny steamboats in their aer
vice, an 1 alih'sih it is by no means desirable) that
ivefiiuiHiii sii'iu'.f Uii'li'it'.rku t'ntt.ti'aiislHi:4,
tion of pascengors or fretglit a a Wines, thro
can be no rcno i iblo olijcciion u running boils,
teinpnrnrily, whe.iever it may bit uscesiiary to put
duwn a'tempt at extortion, lo bo discntiiinued as
nun as reamnuhlo emiiraeta can bo obtained.
jTio ,tuggtat)oin '-f .Pefma'tf r (teneril reh-
ti vu lo the) inadequacy of tho le g il iilloaniieo I )
witnes!' in cas of prost'cuii us for m ui ilejue
diiliniss, msms yims cu'iiiein siniw'i.kirnlimii Tea
safely of the mails rqu!rca that wie;h prosecutions
sliall be elTieieiit, an I justice lu tbe cuizen wlutie
time is required lo be given lo lit jwhlir, ilenands
i:iinj Titity that far enpensra ahsifiW paid, bit tftat
boahitect-r1J-Tt,lImlb c imiiiliiri".if(r"r"
The Ileiporls from the War,.Nav, and I'.wt Of.
fiea IXtpartmont will accnmny this couiuuiiiirv
" tion, and one from tho Treasury D 'rtin'tiL will
be presented to Congress in a, ficw oays.
Fur vartoni detail iu respect to the ninitara in
clnrgn of those departments, 1 would refer you to
. tlioso important dncumenta, sslislieU lhat you will
find in them mmy valuable auggeaii.ms,' winch
will be found wull deserving tho otteutiou of tho
Lecfi-dalore.
From report made in Pccenilier of laM year
by tha Secrolary nf Slate, to the Senate, altui
the trial dork.it of each of tho Circuit Court, ami
the number of mile each jeidue ha to (ravel in the
performance nf hi cliitiesja" great inequality ap
peara imbe amount of labor assigned to each judge.
"Ilia ounibcr of terms lobe held in each id the
courts couismg tha ninth circuit, tho dislnnrfsj
boiw-so tho plaaeetat tscSnm tliej ait, and fioai
lln-nce ti) the seat of G .ivcrowriT, are represented
to be such as tn rT'i- r' it I i p-ee.-nhle f..r tV yi rj
l' that ciVi-int to perform, in a iit.iiiiH r corri'Hxm'l
leg Willi tn public emg -iicies, hi lerm siid circuit
duties, A revision, therefore, it the pvesent ar
rangement of the circuiis seems In bti oiled for,
and is tec oinmeiieleel lei your ueiiice!. ''
1 ihmk it pro(M'r tn cult tour attention to the
. .1 i... 'l . -... i T ..
power usstlilii'u oy 1 errieoritw aiu;;isiiui'- en
thnrian the isxiie ot Donna by coipiirule cimiMiiin
hi lha guamnleA of the 'IVrrlKiry. Congress
pnom-d a law in 1830, providing that no act of a
Tern'fonaf I'wlnTiire wcnrprii:inj Imnks should ;
have the force of law until apprnvd by Congrew,
hat acts a very exceptionable chractervprevi-
nulv paused by the leai,i'al,re "I" Florida, iera
sufbred lo renmiii in force, by virtue ol wiik;ii
btrnd may Je issmyl to a ery large aomuat by
those institutions, upon the faith of the lerriioiy.
A resohitiofi iiili-hdin( to be a joint one (wsned the
nateat llie same aitssion, eapreaniiiglhe seine of
Coiirits that tlio lawa in q iustion ought not to be
pernnlti'il to remain in force unless amended in
many m ttiriul respects, hut it fulled in the llnune
of UpreiC!itHtives for want of time, and the da
sired ainendmen have not ben made '.The in
ttresta iuvedved are of great importance, and the
subject deserves your early and careful attention. '
Tlia aimlinyal agif linn.itf l))L.a"jyJljgl?.ll'l
lo tliu Iwyl iiiruln ol keeointr ami Olbourninit . in
public money! lill injuriously affect the buauicss
of the rnuniry. The sufjiension of specie pay.
menu in 1 437, rendered the use of deposiie banks,
a Drescritwil by the acl of 1830, a aource rather
iriburraS!ieiit Ttiao SjCan iTitTiBCCMrty laeed -
the custody of hiost of lha public money afterwards
collected iu charge of the .public. olli;cr. Tho
new secnntiea for its satety, which im rcquiruu,
were a principal cause of my convening an extra
session of Congresa ; but in consequence of a dia
agreement between the two Houses, neither then,
nor st any aubiequent periisl, hua there been any,
IfJlWal ion no the Bubjwct. , T ellort made at the '
iut seiiii to ohiain the authority ol t-ongresa
tn punwh the use of public money for private
purpose aa a crime, a meiawre . allendej un
dth, other Goveriimenia with signal advan'.age,
wiis'nlso iintMiccessl'ul, froia diverMtic ot opinion
in that ,'bislyi nniwiihsiaiHling I ho anxi'lv doubt,
ten lull bVit lo afford every practicable security.
The -fiwalTn Hhtr-i-ettH--lease the castody-bf
be public money wilhoiil Ihoso aufeguard which
the Kxectilive; and as tlw renieJy is only to
fWid in the ncrtm of lli Lngisbuure, it impiwes
on me the duly of aain submiliuig to yai tue
pmprirty of passing law, pruyidiug far the aalo
keeping of the public moneys, and emwcially In
nk nnt in use tor private pur Km. t ui
eers eiHrosted ysith' 4rmay- W dviard. ttt.bo.a-
f dnny, puiiishnhle with renalttea propnfUoned to
:lhe''hiagi(titi'de''tiw,deev
These circiimataiieea, ad led to known delects in
tha existing I iw, and uiiusal. dcrangenH'iit rn llw
general operafoiis of trade, have, during tho but
three yearsilii
ant on the collection, keeMog ami disbursenient of
the revejioe, and called firt i correiissidi.ig-exer-li.ais
from thnse having them in charge. Happily
these have been euccedul beyond expectation.
"Vast "iii'ma have been cullected aiid 'dishursedDy -
4hw several Deitarhoenta vrrth tnfrXjiwtOil -clwajt--ness
and ease . transfers have been readily made
Itn every jMirl; of the Ui!Mtt. h iwever ;. distant ji and J
fdetaioatioiKi have' Keon far tetSaii, tlWy Vrugfit 7t.
have lawn anticipated, from the absence of add.
quali.' legal -rest rtinia. Siiico the olficeri of the
Tsssiisv anil.Cuat.OilkaJJiipM'incuta
cl with tfie custody of most of the public money
rerciivea oy juom. umo hbtb wem un.vi ...
siJullH" of dollars, and, excJuding the case of
tho late col.-ctpr at New York,, the. aggregate
afii'iunlwT t.isso sustained lit the cuilociiurt can
lint, tt is iH lliiVed. tgCftefl.llt
The defalcafjcin of the late coUoclor at that city,
uf .Ihauxieiu .and circuiiintaiice v.f wbish jL!ungjtes
haa been fully iiimriued, ran Ibmutfh all the mode
of keeping the public money that have been bith
. .... :.. ... u.u.Hi.iiiu.iii.luul IkU an aiToraaa.
run usii, niiu -a- u,..,..K,... - , -
ttsliiigiiisliecl ty an
stramts of c rv aytem,'and cannot, therefore, be
rosef.Uv-c;liiijB!Lia.jii jtC ibej cinipa.ta.Uya
jlViofiWlfAdd4lo'ai-
lei furnished by the report of tlie Si "crefaxy of the
Treasury, in ro(ily to a call m iduXtjion mat oincer.
b Ihe il hiso of Reprenlatives at the last ees
st iiK renuiriiu deiaile.l tuf irnialmn liajhe auhjectj:
nf d.-fiulii by. public) otRee.iiii ir"!!! L,,,'lr "'i'.L.
A liiniiiisl rat Kin, fro. n 17 -39 to 1 37nVi "clocu.
nienl.will lie auhinitled tn vnil in a few daysXTlie
general results, (in.lepeodent l the Poal OiV',
which is kepi separately, and will be sluled by' IV
ai.) so far aa ihey ber upon this subject, are.V
that thn losses which have been, an I are likely to
ba, autainod,by any clas ol gents, have been ;
the greatest by banks, including, a rrqmred in the
resolution, ..their deprecisted paper received fnr
Buldie dues titst tint neat largest uava bocu by ,
disbursing ntikera, anJ the Wat by cnljector and
Te-CiTlWiT IfTtlirtoaWrtllrt
ded, they aloowill be threefold those bvboth col '
loulnr and receivers. Oir whole experience, .
therefore, fnniiihea Ihe strongesl evidence thai Ihe
dnsued legislalion of CiMigr s is alone wauling to
insure in llm-e oraiiiaa the highest degreo of
security and facility. Such also apars to have .
bt-eu llie exnerieoco of other nations. From the
r-sultt of jtiq-ttrieit made JrjfjUwjWrjMarj;.lw
Tinnanrv li reersnl In Ihe nrMCtlCU BlIIIIIII thOlP,, 1
.' e 1 .
am enabh-d to stale lhat in twenty two out of
I tweoty.rven fonjm Govemmmits. "from which
euMinuUnd luiuruMliuU bas Uoeu outaiw. tlio pub . ...1
he inniiej's are kept in chaigo of public ofliccrs.
This concuirence of oHninrt in favor of that ys.
tem i periMiias great a exist on any question
of internal adutmisiraliuO.
In the modes of busiuesa and oltieinl' rest rai its
oa.dLibuiHin-'.wirictera.rio legal ehargc wea-t-ro.
duce.d by ihe ausjieiiaioa nf ;hhio psymetiis. f lie
repirt liM referreel lo will be found to conlnii.-also
timrli twt'tul m'wrmntion in reintiee to una mty
I have heretofore assiunod lo Oaigress my rea
sons for believing thnt Ihe establishment of an In
dependent National Treasury, contemplated by
Th" t nsrinttinnj taner
7TiFee"rariiiover'm!ui. Tlio sosjieiision of spa .
cie payments in 1H37, by banks having the cust.sly
of the public ui.miov, stiowad in o alarming . oV
g'rea cajr depeneleiK'e on ihnao tnaiitntiona fr thai
perfeiroianee of duties required by law, thut I then
recoiuinended tho enlii ilissolntnm of that f ouuec-.
tiun. This recuniineiMlfiliiHi has been subjected,
aa I desired it should b lo csevere scrutiny and
animated d.srussum and I allow myself 10 believe
lhat, nutwiihsianditig tho n.i'ural diversitiea of
opinion which may be anticijnted 01 all eubjecta
invul viiiir such i.iiitortanl consnlerstions, it has in.
cured iu lis favor as general cmiem rence of pub-
j he eriiienent as eould be expected on one of uch
innifiutude.
Recent events havo also continued lo develope
' new ohiectioiie to such a connexion. Seldom is
Uny bank, under the existing sy -tem and practice,
it.le in meet, on ibjmnnd, all iis liabilities for do.
nejiiiei and uote ra ciroulavtioa. It fBintini
I . '. . . .
niifA ie piivnT-ntH, and trsnnri
rgn,a
it;., ooly hV ItlH Cimll'l' n'"
of ttiC public; in
KM kit Vflil V t Hllil w ii. .i' r i
;is
il i!elroyv!,
i. ii ii hoiil-
the ili-inuiwln of iU d.'l"iil l
rn-nrenil nmre mu.illv ihaii it can
luaxe cm
icclioii from its dcblors force
it to slop pn-
loeurr'This loss of contntence Willi .s
ces recurred in 1837, and atlord.-d lheaK.lnv m
.i..v i..l. r... it...:. 0.11011. lliepiiuiic nmn
(S3 Wiail lll II S7M i,.-., i
acqoienct'a in Ine Viinuny
d in Ihe V.il.ciny - ol ine excu-,
whilo the Mate l-aiHliitiire
lul ma exucl troin
them Iheir forfeited churiers, Congress, in ace
nrd
aoce wil h I he focwBiew'latiwU!UlWfV.!lr?'.
allowed them time ! psy uM,c "m"
they held, Although compelled to jswie Treasury
nniea in Mimilv the ilufu'iencv thus created.
It now appear that itaro are other motives than
a want of public confidence under which Hie bank
tu iiKiilv ilMnnwdvus in a refunal lo meet their
riMbligaiion. Scarcely were the ccsintry and G
ve4inient relieved, in a degree, trnm ine uno.u.
ties Oceaaioned by the general auspensi in of 1337,
when partial one, occurring wiihin thirty months
of the forner, produced new and aerious enibar.
rassnent,hiHih t had no palliation in such cir
cum-Himcesasswere aVged in justificitinn of that
which lud prxinuly Inken place. There was
nothing in the emotion of the country to endanger
well mmiHoed baakiiiff' institution : commerce
manufiicturing in dimry V crowned with rich re
was ai "-.ingeo ov no in ii.il war , it 7
wards ; and Ihe inure thinNistial abundance ot our
hsrvets, after aupplying oudometic wanls, had
left our srananea and itnre hoiis" hlieti , wun
Hialla fi'it'-
irplos tor exo.wtati.au . .Ii iainie tnidst ofjhisjtciniation of the pres condition oT ao large a pur
... l. ....... .1 - , ..... . .v , , ...j 4 ,.f ..... Kmilij ilirt. ll...i u'lirilllirrliindmr.tlti. h..tfi
thatan irredeemable and depreeialed paper 'cur,
rencv is eniaitod inton the people! by large por
lion of the banks. They are nnt drivoci tn it bv
the exhihilino of a loss of publ.c cmoi!iniiror of
a suddim pressure from their depositor orNjicite
holders, but thsy excuse themselves by allfiaajng
that the current of business, and exchange wiih
foreign countries, which. draws the precious metals"
from their vaults, would require:, imorder to meet
it, a larger curtailment nf iheir l.sins lo a enm
paratively amall portinn of the cominunily, ihun
it will be convenient fir them lo bear, or perhaps
tafn for the banks to exact. The plea has erased
to be wis of neeesnity. Convenience and policy
are now deemed sntlicienl tn warrant "lliese inslitu
tions in difg,ar4in-thf!ir aolcuin ohhgntnmKiWnrtT
?ueh conduct is not merely an injury Ic iniliviclunl
Creditors, but it is a wrung to file whole coicnuui
ty.'frorn "whiw Iitfrahty ttiryriiiitd tnnst vnfiiab'e
privileges wIiinmi rights they violate, whose busi-
nesH they cli.-rahge, and the value of whose proper
J ty lliey render unstable and uisecure. It iiiust ,bo-
evicietit umi tins new urnuuu tor iia.iK su.KsiiMioiis,
in ref 'retire lo which thcur aclion is nut only discon
oected with, hut wholly imieutntdoiit of, that, of the
pubi c, give a character tn their iiwiietisiiiia more
"UtaewHos; haivrw4ieti HeyiW4tl hefisi sind
grenily increases ihe impropriety of relyiu on
the hanks in the trannaclions of the Government.
K targe and highly resectable portion of our
tanMffjflnrttiitiiiuw vriTirdiimauifei''r.I
pleasure to Date, exempled from all blame on ac
- . . r . ....
eouui ot tin aecono oeiiiiqiieiiry, I hey have, to
their great credit, not only continiled lo meet their
en jagemems, but have even repudiated life grounds
I upenstonnTr reaoneit to. - n t iinlv" by aui h
C Hirue that the cnuliJi'uce and good will oif tho
community can lie preserved, and, in the sequel,
the beat interest of I he instiiuiHins Iheuiaelves urn-
JVew dangers to the bank are also daily die.
cbieed from Ihe extension of that system of extrav
fijiaiU j-rcdiLuLwhkk Ihev-Jwo thu piUarsrur..
merlv our f rign commerce was prtncuially found
ed on an exchange of commodities, including the
precious jiintoia, and leaving in its transactions but
bid".. forego del)i. Such is.ii.it now the case,: Aided
bf thn flicriltlLM alTirdiid fv llie liiiiiks, "mere credii
haa bccunie toocwwHioly the' baa;sof trader
Many of Ihe banks Ihemsrdves, not content with
taniely. stimulating this aystuiu among others, have-
urped the b.liiness, while they impair the st i.
bility of the mereaiitileromniuiiitv : they have be
come borrowers instead of lenders; they establish
. - ...... . .,r.., in. j c-,.u..,
lSia.ifljecurit.es uut illhe Ijireig.ii jnii rkd is .gluttRd
mm inirii:iiniioi9i inry rocnuritge cue imun 01
ft'Hli. Ibein .; au.L, uns4tifkd. wah lbedeiiiciuiU use
Vltieiriisiti eapttal Olid the exwiwihinrlBW -
ful privingt-, they raiie, by Hree loans, a.l.liiiocia
nv-Hn fur every uriety of specuUiinn. The dis
aster! atteTidant nn this deviation from the firmer
alike by bunks and iialividonls, In an extent of
which there is perhaps no previous example in the
annals of our ponntry. Si 1 long as a willingness
of ihe foreign lender, snd a sulBeient export of csir
pinclucliuns lo meet a y necessary partial pay.
nients, leave the fl iw of credit uudisiuibed, all a p.
rtfaa to be prosKr(ui ; but aa anno aa it ia checked
by Otiy hesitatn nhmad, or by an innhilily tn
make payment ihere in our proitiiciions, the evils
of the cyslnia are di-s:loat-d. The paisr curreocv
which might serve fur dnim-stio purposes, ia use.
to pny t he- dobl due ttvtuoiie (m14 and sti
ver are therefore drawn, in exchange for their
wMea, from Ihe hulk. Tn keep up their supply
of coin, these instituiiona are ejbliged to call upon
their own debtors, who pay them principally in
their own notes, which are as unavailable to them
as they am lo the merchants to ns?el the foreign
de-naud. The cnlls of lhev banks, therefore, 11
such . emery-cric? flf tUtesMty,, exceeel that d.
niaml, and produce correspooiling curtailment of
inrir accoinmcHiattuns ana o the cucrency, L llie
I'tiOr'ieUttlil
wuwt tocoiivenieul Ju slau-tyiajeuaii
mis pressure cm ine cominuuity is in proportion to
.1. lll l". V
uic; previmis norrnmyot ereoiimtiiHeeqiiont-esH
paiwion of the currency forced sale of property
are omde at tho time when the means of purchnsv
in are most reduced, and tho worst ca'amitira lo
.inJ.ii1!i! "re .im!y : JasL.a.rresti;'I, by. jau...flpen
violaiion of their I'ibligati.ais by the banks, refit.
sl tn pay 3pcie f.r their note, and au impusition
utmi the i-iiinniuiiitj pf 1 fljetUAIIIIj fliiJ leprec iu-
ted currency
These coiiseq.tniices are inhere-it in thn prcarnl
system. I nry are not iiin.n need by the ikinks be.
.tOlJI.itJ,)iaU.toaUul.biL-.Ni4aika..oj ,-Ula.iV.4l.tKUlfcOil rhe.t:iccmiite. mi Jeislatv
l ivertimenls. Ihey are the results of the irra
sis,ibV biw of trade and credit, lo Urn recent
eventah h.vo.oW
1am etSTtf tHee tews, we have seen the bank of
thn largest capital iu Ihe Union, established under
a Naiicmal charter, and lately strengthened, aa we
wei authoritatively informed, by exchanging that
for 8tate charter, with new and unusual privi
legea in a c-mduioa too, as it was jaid, of entire
soundness and great prosperity not merely unable
toresisllhepetbuMheto
y ure.Wru umi mere exist a ami believing, at I do, that such also is the judgement
chain ofncenry dejiendence amotii these inslitu-1 which discussion, reflectnm snd experience bsve nrn.
tioii which oblige them, to a great extent, to fol dncrd on the public mind. I leave the Subjent with yon v
low llie course 01 others, nnlwithstanding it atijtt. i Ic eventesIcntial to thn mler.aol thecomi
lice to its own immediate creditors, or injury tn ' mnn,tyj'n xi busiiiess of ihe (iuvern neiit, tlmtane.
Iho (MirticuUr cornmuiiiiy in which thny are placed TT,lrJ', l IT 7777 T"T7" "
Th dependence of bank, which i, in projortim, I inSikt tlhS s . w. I'?"1" " U'm mU'
to tho extent of i.adobu for circulatiei a'od J..;J "2 TZ ? P"
jpostlelirtottmreleontJtheMlaitioarn
, en U th"' whi h conrvvl if with ho centre f
. ' ... i ..I ,ni i n niNiV
t . . .l.i I I W Hill 114 Ml II. 11 I'll. w. .,'.
I f 'lift . ........ .
.iT.i-iii, ' lii.Mi in our tirincieal conuiercni
cities ;
,.,.i it,-Ti.iiiife id lb"' 1 if r i lell
il ttie C''r.i i-
In ol, I .lie, in o.i. ,
'1 !,e u-ieiil"ll ol f I "iK,
where, wiiii very Ii e,-. p-
in 137. w is everv
linnst i:i"i l, hi mhm h il ko ni
cenlly at rinlailrlpliia uiiuie.lial. lv HlWlecI ihe
bunks of llui S itli and W't'M in a .imiUr 11 ffl'liier.
Tins deien.euce of cir whole banking syslecn nil
the institutions in a few Urge cities, is not fnu.id '
in the laws of their orgamaiimn, but in thnse ot
trade and i-whairuO. Tle banks hi thai .niHro to
Jilcnlwwiicy fl.Twatititf'wtieW If i WHrfwf.iir
nvmeiits fiir nierc'iiin.lise. hold the power of con-
w
pay
Irolliug those in regions alienee il comfH, while tint
latter possess no inc uns of restraining them j so that
the vnluAof individual proS'rty, tmd the priwri-
ty of trade, through the whole interior' of tha
couulry, are mnde lo dep'tid on the good or bad
management of the banking iiisiuuiioua in iu;
great seats of trado on the (.eubiHird. '
But this chain o!' dependence does not slop here.
It does n..t terminaie at Philadelphia or New York.
It reachee across the licoao, and ends in Loudon,
the centre of the credit system. The same laa
of trade, which givea lo the banks' in oiir principal
citiei power over the whole banking system of the
United States, aubiocl the f irmer, in iheir turn, to
e .k- V...I. lba
mad-that tlie"stisiensiou of ihe New York banks
in 1837, which was followed m quick uecesioo
thronghcail the Union, was prmluced by an apidi
cation of that Dower 1 and it is now hlleged, in cV;
lion of .oiirrtBuk'ftvliial their eintarrartthctita'tV'VO
arisen from the aatiie cause. ,
"From thii influence they ennnot now entirely"!
irTfTiae'iU origin "hi the" credit curreu.'"
cie of the two countries j it is strengthened by the
current of Ira le and exchange, which ceiitr in
London, aiid i rendered almost irresistible by
M'ne largo lehts con'ractcd I here by our nier.
chant, our bauka, and our Slates. It ia thus lhat -
an Vitroductinn of a new bank into the most dia
tanl if our villngca, places the busiticaalof that.,
village -Within Ihe influence nf Ihe money power in
England. lt ia thus that every new .debt winch
we contract ji I bat country, seriously filfii'ts our
own currency, sand extends over the puramls of our
WtTSaiuiiol csscupe
Irom this by making new binks, itreat or aiuall,
Slate or National. I he same chains whicli hind
jthoso tiii existof tiVthe -oonrre nf this ysteo iif--
pper credit, must equally fclter every" similar iii.t
tti'utioti we create. It is )iily by llie exienl In
which this, syslctn has been pushed of late, ili.a wo .
have benn made fully aware of iis irresisiibla ten
ilency to suliji-cl our "vn banks ami ciirreucv to a '
st.fltsltr!ijyiHt
aids a new argument 'to. thiMte wlneh illustrath.
. . . vi i ) , ,
lhsrriim!i
place by their own mismanagement, hoi! iigaiu by
Ihe conduct of every institution which pduoccta
them with the centre of trade in our own country,
they rr-jnPt miujctrd-, bevondtiH this, to1heeii',,ct ha vcilmrtertlfoaiVio-inwcie, beitte t atjtr
of whatever measure policy, necessity, or cap propurlioo than would have be n required jntiw
rice, may induce those who control the credtia ,T ' U" grsduaiinn pnp.ed -P
V . . . 1 , , . It is uioreover a principle than which n.ae a Ma
L'il'IsiiiI lo resort tn. . I mean n it to comment . L.. .1... 1.. .: ;
' , , ,
upon these measure present or, past, and u.uch
tesa 10 uiseourage ine pruaecuumi 01 lair ciiiiuner-
pini L uc-niiiij uei vrrrn .100 1 wo couuiries, pas. '11 on
reciprcical benefits; but it haviilir now been made
matiifea) lhat .the jxiwer of ilifliCMng tbesp and
wiailar cfeiht
' ' 1 .
currency and credit trade, equally capable of ex
tending their consequuces Ibrough all the lamiti
iaiuuuf,oor htuikifiH ayslaiOvaod byhiU-MtfuuiV-.
indirectly oblaiuiug, particularly w lien , our banka .
are used aa depowitoriea of Ihe public moneys, a
dangerous political influence in Ihe United Slate, I
bfla dcetned it toy .ciuty tokioa.Uie:aubiect to your -
nonce, and ask lor it ynor serious cousidenition.
IrtrijrgijmBtirTerquirCiJT
ol these tacts, to show the impropriety of uiug our
baoking maUlutHHsf ss depoaitorjea of the public my""
aey 1. Can w veuture but only to encounU-r the risk
ot their individual and mutual mismanagement, but, at .
the same nine, to place our foreign and dometie poll-
,,ir ,!, ,1.. ..,.. , .si .,.,
G ivernmcnt, as the preaeul credit sy rtem has already
Liiupairud Xha .univ peodouce ot our ban ks. It u u su Ik. -
oulaU rtetttoHc
ws taiitr4W-
banks, ana then by a power abroad greater than them.
selvesL 1 cannot brinir uiysell to eieuiet the humilia
tion lo winch th (j,rnment and ponple -might be -
aeuuer ur but rruucvu, il Ilia me JOS lor QileUiIlllg
U.uir rigbu iwtolm made Sepauelem opso-thnse whe
may have ihe most powerful ot motives to impair them.
iejr ia it only in reference to tho ellect 0 tJna sUte
ol things on the independence of our liovernnieiit yr of
our banks, that Ilia aulijefct presents nsolf fur Cesisieler
si ton ; it w to tw viewed also in its relations lo lha gen
eral trade of our country.
The Uuie iDotloug past when..lefi. -fwy of foreign
cro;ia was Wiuujflit toallord a prohiaWc market for the
surplus ed our luuustry 5 but now we await with fever,
usi anxiety tha news of tl.e Kuglish liarvest, n4 ao
uiucu imiii iiHSives of commeuilablc sviinwthir. In.t
teuriul lost iU anticipated iaiioro houlii narrow the
U44s4i--jli-thi
the patrieKt Con a yslcm Im beneficent, wiae, or just,
wnicn cresies Kreaier anxiety mr inu reseis elepeixlent
on forern credit, than for thegcneial prosperity of our
own country snd the profitable exportalkiu of the ur
plus pro.. nee of our labor 1
The circuinslsnces to which I have thus adverted ap
pear to me to afleird weighty reasons, developed by lata
evoiils, to be added to tlnie winch I have on fiirnier oc-
kiaiona Bem,L f.t-t''Lsujtmtiliigji'j;gurjLs'ite-r kuowl-:
edge snd dMcemmeut the propneiy of si periling the
custodtrnf the public oiouey from bankmg wstttutions. "
I baa beretotura been ureij. 'i'tie on.
Hf jjrcMiHtiwwbica that ustory can be desired by the"
banks, is the pmlilable Use which they may ms'ke of
the moneyrr Such use would be regnrrJwl in individu
;ils as a breach ol trust, or a crime of grin t magnitude,
and yet it may be reasonably duubtcd whether, first
and last, it is not attended wnb more mischievous con.
fH'""nces, when pennittc.l lo the former .thstUo. lha
Tiitlerr'TIie prsclicecii permitting the piiiiliciamey to
be used, by its keepers as here, is believed lobe peculiar
man rat'.nny0n.Li rati-.t mnri-i any wiis.a
To procure , it here, improper influences are appt-alrst to,
unwise couuKtioiis are establialied between the (Joy. .
eminent and vtt numbers of powerful Ktate ins'itu-
licinaTothvr liintiVe a tliaii tha public ffissj ate bron rtit
nwitta, and selfish eocnbinslmas, leading tn sneeml to.
gislatiem, are firmwl. It, ia niade tho intercai of bank.
tmn and the accuinnlstioo ot a surplua revenue; an I,
while an excuse ia a Horded, the means are furnished
for those excessive wsuos which lead to extravagant
tnding ami spallation, and ar Km forerunners of a
vi -a debt abroad, and a suspension nf the banks st home.
Impressed therefore, as I am, with the propriety of
the fund of lha (rovermnent being withdrawn fiiwn
their ddtea lor public uttel Tftodifi-crcrtee Tmlft
tvra In or.Q in-Hinon, t a C .vetn'nMiit u, (
l r lis Je.n:te, and lu I in ner fir vt n '
l'lt -yiilt ir.l lue M.iie " pp irtu,niy ,,r u., U
ill' met, a'lil eonslly k'9ij li ail tun .ViU h"
ill It, KlIlCU 4 UtllB. ei 1 S-SiJl
a i . . " 'i u
i i.'iu,ili! of IM ! !fj 111 llif; Inudi ,,
f - i--H. il J
pal
i
as on on" iireiiMii os trn iuus. I) i i , , , .
il wnul.l l'I'H tn the (J.iviyii itenl m irr..i .. :ii
"tfor7iii c.e oTUiliire, the'cht.not ihs io.;ho! !,.
'.jbe no b-tier than tfiat of a decent.1. ''r"i4
I ... Ii. .1 .1... .i ........ ..v .
public, ami tKireiisein'ilij preun;S('!,.ii wni) i0
Inve bnen urge.l as ol.j.'Cti.ms tn reipitm. ,k K
inunt of the reveoue in gold and kilverX f
iiiais
iwiuu'ates we may. safety hi thu auaiant ofa-iiW ,
co jiiiry at eig'ity-Bvn niillionM of !.iur, a'n.l
tion of thit which would be einpl iyej at',,,, w
in thn receuita adn clishursemeuta (it tHrfid ,v,
ev.-ii ifthti projsised chinga wure uimle st once ,'!
nut. it. iii nowi nt)er toil itiveHtorntinn t.l;..-j '
Cmr nr live iiolhVihL IT the eh imio u.o, . .
MVM ....
' . , wb'8.iUiiLto.
arul years wnuld elapse bc'tnre that auin winild L
quired, Willi, anna il iipporluniti.s in lie mesn tiin.'''
alter the law, sho ill expefjence prove il to
sive or incouvenmnt The' portion of the cornnT''
on wlmso biintuess the chango would iinmailnuu '
rmesre cnniptiratively amall, nor is it believed tt
efT.'ct would He in the least unjurt ur injuriouatBtu
la th'opsyuieiit of duties, winch constitute hr tu,k!
greater portion ot the revonne, a very lar;e mmZ
. owtlHI Sink
o ruretgn nianntacliiries, who sell tliegoodj ohu'iZ
ties out ot the avai a. remit the rest ahmul i.
lies inn ui ine nuiuo, renin uiu rem anroaa lu snuj.
its equivalent, lhat. Hid amount of duliea ihoulj
such case, ba alsnreUined in ;Mjcie, can kirk
iiiadii a mutter of complaint. t.)ar own impirtinjj,
chants, by Whom the residun of (lie duties is mt, a r
not only p.'culurly iiUerestcC in mainUining a rj
curr-ney, Which tha mnsurs in qiicsiinn will espociti.
best able to kaaw when siwcia will ba neednd. J
fmimitWinnM'VedilWeii or sacrifice. JU.
ding, ton, almost universally in places where the rer.
Due is recmveil, and where IJie drafts uaed by tha Go,,
ermnnnt tor its disburseinents must concentrate, 04
have every nppnriunity to nbtain and use them in '
of specie, s'loolJ it be for their interest or Convenient
ui ins nuiuuer 01 nitue uruiu, ana toe facilitiet Un
in.iv aflord, as well asof tho rapidity with whicktS
public funds are drawn and disbursed, an idet miei
fiirmed frnni the fact that; nf nearly twenty tnitTiuaaar
dnlhrs paid to collectors and receivers during ihepm.
out year, thn avoriga amount in their tiatida uinym
111,10 nusnni e km a million sail a nut; tnttflk
fifteen million received by tho collector of Nes Ynk
"alntiSTft nrig"tneOTeiiTf"eW,"thi) am
by him, subjnet tn drafl during each week, bu Wi
less than half a million.
.riThe 'eaie amd aatety. gf i.tfjetysjiji
in keeping the pu blic muiiny, are pr.siioted by tat if,
plication ot its n'vn dralls to the public dues, 'IV4
jection arising from'hsving them too long ouUUiiiuj,
might be obviated, and Ihey yet made tu alui iow.
chatiu and bunkj IkiUiii? thorn an equivalent for sao
cicvan l.in thiil wny greutly lessen the amount lew."
Ij r'ijiiire.1. Still less ineniivenience will jtjsiijilit
"ri'iqii'ireineiif ofspecie iu uurcliaseaoT 'publiis "Umlii-
audi purciisses, except wiieamaiie on specuuiMiiN
Sucli purchases, except when made on speculum. u,
tha same persiM ; and il is a fact, thai fur lh lot iar
and a half, duruig which the notes of sound ban kite
been receive.!, m.ire tin a a moiety of theta paijemi
9 I suneu uy ruperieuttr, nisi, vuu bhujiit w m ym.tm
me mli ilwaya bjj iouniV adeu.uitaJo tl.e tats Is
wbichvlhev are required. 1 Ucy abound ia Cuoolna
their plaeeA NVhen driven to their hiding places!
- "to" suspsnsioni k luna. trtnjlcs MWt:m-
r.ul...A Ihk.n IM MlrtlMlfll .nrl.nlilW f. .T nfti lAlff
IMII iBiiiiira (imiii m vii..vi.ii..ufi.i.j ." v....j
purposra..v.PustagSnd other public dues bivs bets
collected in Coin, wititoot sersiua incoiivenienrs, lis
itfnrtes wherea"tti,pr,t;ciati''d ptijier cu'rrsnty tssa caw
ted for years, and this, with the aid ot Tnu7 B0,e
for a part ot the tiino, was , dune withost lotsrruptwo
during the suspension of l37- At th P11'1
niei tho.receiuta aiid, d.(S;turir.infints.ofMe.
are miun in lerrrl rtirrstov H insisricw imuuu
j -- . .
Unitukno.onuuggusis a rfcipartura-, trum tnn-ttin;
snd if it can now ba successfully carried oot, it wdJk
surely attended with even less difficulty wnea M
Ootei'ai ijfalit redeemed' In ipecie.""
ndee.1 1 cannot think that a seriesi objeetssi tisli
any where ba raised to the receipt sml p ty meal af fed
snd silver in all public tran'aictions, were h sot km
jjxawtdipjimuiiJJb.it a fin rpl m in tha Truasnrsatt
withdWy1aTge'piTtiiw vw-st-ifom feoils), sat
lock it np Uiiprotilahly lu llie public vaults. Il sstU
c,-in my opnmm, tw difficult tn prevent" snctl tt ft
ineil1swriich 1 havei already ieubmilted to yuu Btifw'
to tlieanlual a iiouiil ui the public Treasury Hist
tl no durinir the penml embraced in them, sml tkcl
lie probibititj of a d.tfercnt state of the.Trcisainfi
at least Sisne years to O ne, aeeoi to renuer a
. ci'sMTTirr-dwetf opoaHt:ungrei.v-wwrenwf, al
have before olsoTveil. will in every year have 11 s
portunily lo guard agtinsl it, Hibeaild the exmntta''
sny circumstances lesd us to apprehend injury fc
this source. Viewing ihe subject la all it ipI
Cannot believe that sny period will be mors ninf"
thsn the present fiir the aduptioaof all im-amns
eeseary tomatntatn the sanctity of ottr own enjsf
nients, snd to sid in securing lo the coinmuiiilj US
abiinilsiit supply of tha precious' metals wlnchid
nnicli to their pftp!rity, and fivos sucii iucressfd
bill! jf tii all their duiliiigii. ,
lit a ftmnfy so csnitiprcial as nns, banks is
FtVmut'prTiBitjty-atwTyiTei
render it the omre i.-vumbe-iit on n, nolwilbliii:l
tlieeliscniirji'.'ineiilsof tlid past. In strive in our re
t.ye station lo mingate the evils they nM"luce; lo'k
from them as rapidly astbo obligatuuts of puW Bl
snd s careful CoOsi ler.it,. m nt llm nnnirtliaia mtf8
of Ihecmnuiunity Will permit, thn unjust chsnclrt
monopolies; lo check ) hr as my be iiraeticieW
pru leiil legislation, . thus:.' temptslions of interest vt
.luttie .opportuuitws tir tloor dunturous inefulsf
whicli beset them on every aide, and cuiiUne tl"
IrtO the) perfituiV nccof their" nnraiiiotliit duty, fli
sultniL' liioir own exclusive advantaire. ' m
ottiertatry reSirih mayt it is believed, '
plished withiHtt the violation of any ol the gret pt
pies of Die social Compact, the observance of wil,
indispensable to it ex stiince, or interlerring !,
way with Uiu useful aiid prulitable einplnyincu'
capital. - y ' - T ',
.. I 1st 1 11 1 ion a ffej f ro aied have eiistcJ.snt! atiUMMr
where, giving lo coimnerciiil intercourse ad ait."!
facilities, wilhoiil infljlinir or tlfpn-ciaiiiigllic"'
... . .... I. .Hi-
their legitimate ends, they htvo'aiiHHl llie BitrM : '
antes fir their protection snd eiicourageHieiil i u
good will ot the community. A n.sig a peop's
as ours the same results cmibf not fail to atieod s
uVtSfr-?VjW-rlrrert s1ieriifiiT'St-tbfcWil
ksiirs, from the nature of nur (J ivcrimient. to theSi-
who authorise them. It is to their Lexisinun''
the neonls must msinls Im.le C.r aetion on th.it
Cut, as the couJuctuJ W ieJioal Guvcrnuifnt "J
iminige nent of its rarenue has alsi a poweriul
loss iminneliatc infl ience upnnthein, it beco.ns(
ty tn see that a prope-r direction is given to it.
tlw keeping ol Urn public revenue in s aepsrst i'
dipoTnlent Treasury, sml of collecting it in f
ilver, will have a silutary infl ience on lb 'fJrf
psper'credit wnh which all bnks ara e.inn''
thttsaid thnso thtlaresoiinil aiiJ wi-IT i.ift'ir''
at tho ssino tune seosi'dy clec.t sucil ss arc otla
by at once withholding the inein ol extrav-g'n
fordel by the piiilic fiin is, and rostraimn
eweiv iema of notes wliich they would be'C''"
ly cille.l upon to redeem. .
- I am aware it harn rurgu 1
tnnv )t Iho be, nitiine j and exerted by Be
;a 4atiootil HiiiH. Ine C'tH"ill'ial noj"-"
jwhiclIiiin well known to eiilertain, would I
font mu in an event from nrooesjioc Of
' ' -