n a st ui auo n which snail relieve u lrom an ilcpendence on tho will of irresponsible indi fidufcls or cbrporationsf; to . witlnlraw those monbys from t!ie uses of private trade, "and confido them to agcnls 'constitutionally se lected and controlled by lawjHo abstain'frorn improper ntitcrferbnco 'with tho industry of the people, and with'hould inducements to improvident dealings on the part of indi viduals; to givo stability to the concerns of tho Treasury; to preserve the measures of tho Government from the unavoidable re proaches that flow from such a connection, and the banks themselves from tho injuri ous cflcpts of a supposed participation in tho political conflicts of tho day, from which they will otherwise find it difficult to es cape. These are my views upon this important subject; formed after careful reflections, and with 'no desire but tb arive at what is tndst likely to promote the public interest. They arc now, as they wore befnro, submit tal with unfeigned deference for tho opinions of others. It Was hardly to be hoped tiiat Chances so important, on a subject so inter fcsting, could be made without producing a terious diversity of opinion: but so long as those conflicting views are kept above the influence of individual or local interests: so long as they pursue only tho general good, anil are discussed with moderation and can dor, such diversity is a benefit, not an inju- y. 11 a majority ol Congress sco the pub he welfare in a difl'crent light, and more es" pcciully if they should be satisfied that the measure proposed would not be acceptable to tho people; I shall look to their wisdou lo substitute such as may be more conducive to the one, and tnOrO sauTactory to the o- thcr. In any event, they may confidently rely on my hearty co-operation to the ful lest extent, which my views of the Consti lution and inv sense ot duty will permit It is obviously important to this branch t)f the public service, and to the business and quiet of the country, that the whole Subject should in some way be settled and regulated by law; and if possible at you present session, Besides the plans above rclerrcd to 1 am not aware mat any one has been suggested, except that of keeping the public money m the State Banks in snc r.ial ilcpositc, This plan is, to some extent In accordance With the practice ol the Gov ernmenr, and with the present arrangement ot tlie Treasury Department; wlilcli, ox copt perhaps, during the operation of the late deposit act, has always been allowed even durinir the existence of a National Lank, lo make a temporary use of the Slate banks, in particular places, lor the sale kec ping of portions of tho revenue. This dis cretionary power might be continued, if Congress deem it desirable, whatever gen cral system bo adopted. So long as the con nection is voluntary, we need perhaps an ticipate few of those difficulties, and little of that dependence, on tlie banks, which must attend every such connection when coin pnlsoryin its nature, and when so arranged as to make the banks a fixed part of the machinery of Government. It is undoubtedly in the power of Con Press so to regulate and guard it as to pt i vent the public money from being applied I IU IMW UOC:, Ui JllblIMlllljli;U 11 Jill IliU uiiuiia, -of individuals. J hus arranged, although it would not give to the iovcrnuient that en tire control over its own funds which 1 dc I sire to secure to it by the plan I have pro posed, it would, U must be admitted, in great degree, accomplish one of tho objects- , which has recommended that plan to my : judgment the separation of tho nscal con f-nrns nf llii finvr.rnninnt ftnm timer nf in uivjduals or corporations. With these ob i scrvations, I recommend tho whole matter to your dispassionate reflection; confidently hoping that sonic conclusion may be readi ed by your deliberations, which, on the one hand, shall give salety and stability to th fiscal operations of the Government, and be ' consistent, on the other, with the genius of our institut ons, and with the interests and wishes of the great mass of our consti tuents. It was my hope that nothing would oc cur to make necessary, on this occasion, any allusion to tho late National Bank. Thorc aie circumstances, howevnr, connec ted with tlie present stale of its affairs, that bear so directly on the character of tho Government and the welfare of tho citizen, that I should not feel myself excused in neglecting to notice them. The charter which terminated its banking privileges on the fourth of March, 1830, continued its corporate powers two years more, for tho jsolo purpose of closing its affairs, with au thority "to use tho corporalo name, stylo and capacity, for tho purpose of suits for a final settlement and liquidation, and lor tho tale and dispositions of their estate, seal, personal and mixed, but lor no other pur pose or in a-iy other manner wliatsoev- ;r. ts effects were transferred by tho bank to a iew State institution, then recently incor porated, in trust, for tho dischargo of its lebts and the settlement of its affairs. "With Jits trustee, by authority of Congress, an diustment was subsequently made of tho ' . . ...1 . i. .i.- r, . i-i snre interest which iuu uuvcrmneni iiau i the stock of the institution. The manner l which a trust unexpectedly created upon ic act granting the charter, and involving tich (?reat public interest, tfas been exocu- u would, under any circumstances, bo a ' ... c: .1-... I... I n.nw. Ann IBU'jOClOI inquiry, uuv muuii iuuiu uum (deserve your attention, when it embraces 10 T0UUIUJH1UU Wl UUHuiii'iif v .f...m w t,orty aim rreuir 01 me uiuieu t?uuv liave civen value, The two years allowed art "now nearly at ah end. It is well -un-derslcfod that the trustee has not redeemed and caricclled the outstanding notes of tho bank, but lias reissued, arid is actually fais- auiug-Hiiico mo unrn oi luarcn, ioao, the notes which liavo been "received by it, to a vast amount. According to its own official statement. so late as tho first of October last, nineteen months alter tho banking "privileges given by thcr charter had expired, it had under its controul Uncancelled notes nftbo lni Tinnl.- '61 the United States to the amount of twen- seven millions, five hundred and sixtv- ono thcrasand eight hundred and sxly-six dollars, of which six millions, one hundred arid seventy-five thousand chrht hundred and sixty-one dollars were m actual circula tion, one million four himdrcd and sixty eight thousand six hundred a'nd twenty seven dollars at Stato bank atrcncica.'nnd three millions, two thousand three hundred & ninety dollars in transitu; thus showing uiaiupwarus 01 icn minions and a hull of the notes or the old bank wcro then still kept outstanding. The i mnrnnrlnlv nf lliia procedure is obvious: it being tho duty of tho triiElec to cancel and not lo nut forth the notes of an institution, whose concerns it had undertaken to wind up. If the trus ticehas a right tore-issue these notes nov, l can sec no reason why ltinay not eontin ue to do so alter tho expiration ol tho two years. As no onouotild have anticipated a course so extrnordinnrv. lii nrnliitilfm-v clause of the charter above quoted was not accompanied by any penalty orthcr special provision for enforcing it; nor have wc any general law lor the prevention ol similar acts in futurci " But it is not in this view of the subject 1- il.i ........ :i i uiuuc in. ii. juui iiiiui jiusuiuii js rcquneu. The United States, in settling with the trustee for their stock, have withdrawn their funds from their former direct liabili ty to the creditors of the old bank; yet notes of the institution continue lo be sent forth in Us name, and apparently upon the autho rity ol the United btates. The transactions connected with the emnlovmcnt of the bills of tlie old bank are of vast extent; and should Ihoy result unfortunately, the inter ests ofindividuals may bo deeply compro mised. Without undertaking to decide how far, or in what form, if any, the trustee ill i .1 . . J . . . couiu oo maue naoie lor notes which con tain no obligation on its pait: or tho old bank, for such as are put in circulation af- i .1. - !.!. I ..1 mr uiu expiration 01 lis cnaricr, anu wiin out its anthority; or the Government for in demuity, in case of loss, the question still presses itself upon vour consideration, Whether it is consistent with duty and good faith on the part of tho Government to witness this proceeding without a single cllortto ariest it. I he report of Ihc Commissioner of the General Land Office, which will be laid before you by the Secretary of-thc Treasu ry, will show how the aflairs of that oflice have been, conducted for the past year, inn disposition ol tho public lands is one ol the most important trusts confided to Congress. The practicability of retaining the title and control ol such extcnsivodo mams in ihc General Government, and at tho same time admitting tho Territories em bracing thcln into the Federal Union as cocquals with the original States, was " scri ously doubled by many of our wisest slates men. All feared that they would become a sourco of discord, and many carried their apprchensoins so far as to set? in them the seeds of a future dissolution of the Confed eracy But happily our experience lias al ready been sufficient to quiet, in a great de gree all such apprehensions. The posi tion, at one time assumed that tho adnns siou of new Slates into the Union on tho same footing with the original States, was incompatible with ft right ol soil In tho U imcu oiaics, anu operated as u surrender thereof, notwithstanding the terms of the compacts' by which their admission was Ia- signed to be regulated has been wisely abandoned. Whether in the1 new or tho old Sftes, all now agree that tho right of soil to the pub lie lands remains in the Federal Govorn mcnt. and that theso lauds constitute common property, 10 be disposed of for the common benefit of all the Stated, old and new. Acquiescence in this just principle uy tho people ol the new states lias natu rally promoted a disposilion to adopt the most iiberal policy in the sale of the public lauds. A policy which should be limited to the mere object of selling tho lands for the greatest possible sum of money, without 1 t l' I . 1 I iLiim ui nigiicr consiucrauons, iinus uu few advocates, On the contrary, it is i'cn orally conceded, that whilst the modo of disposition adopted by the Government should always bo a prudent ono, yet ils lca ding object ought to bo the early sctllcment and cultivation of tho lands sold; and that it should discountenance, If it cannot prevent tho accumulation ol large tracts in the same hands, which must necessarily retard the growth of the new States, or entail upon them a dependent tenantry, and its atten dant evils. A question embracing such inpoftant in terests, and so well calculated to enlist the feelings of tho people in every quarter of the Union; has vory naturally given rise to numerous plans for the improvement of tho existing system. Tho distinctive featuros of the policy that has hitherto prevailed, are, to despose of the public hinds ntinodor ale prices, thus enabling a groatai number to enter into competition for thoir purchase, and accomplishing u double object of 'promo ting their rapid'scttlement by the jniicha eis, and at tho same timo irtcroasing the re ceipts of the Treasury; o sell for cash, thereby preventing the disturbing influence of a largo mass of private ciltzens ind6btcd to 1110 Uovcrnmcnt, which thoy have -a voice in controlling; to bring them into mar ket ho lastcr than good lands are supposed to bo wanted for improvements, thereby preventing the accumulation of largo tracts in fow hands, and to apply tho proceeds of the sales to tho general purposes of tho Go vernment; thus diminishing tho amount to bb raised from tho people of the States by taxation, and giving each Stato its portion of the benefits lo bo derived from this com mon fund in a maimer the most quiet, and at the same time, perhaps, tho most equi table, that can uo devised. Theso provisions, with occasioned enact ments in behalf of special interests deemed entitled to tho favor of the Government, have, in thoir execution, produced results as bcnclical upon the whole as could rea sonably be expected in a matter so vast, so complicated, and so exciting. Upwards of seventy millions ol acres have been sold Ihc greater part' of which is believed to have been purchased for actual settlement. Tho population ol the new blalcs and 1 crnto ries created out of the public domain, increa sed between 1800 and 1830, from less than sixty thousand to upwards of two millions three hundred thousand souls, constituting, at the latter period, about one-fifth of the whole pcoplo ol thO United states. J he increase since .cannot bo accurately known, but the whole may now bo safely estima ted at over three and a half millions of souls'; compossing nine Slates; Ihc repre sentatives of which constitute above one third of the Senate, and over one-sixth of the House of Representatives of the United States. Thus lias been formed a body of free and indipendent landholders, with a rapidity unequalled in the history of minkiiid; and this great result has been produced without leaving any thing for future adjust incut be tween tlie Government and its citizens. The system under which so much has been ac complished cannot be intrinsically bad, and with occasonal modifications, to correct abuses and adapt it to changes Of circum stances, may, 1 think, be safely, trusted for the future. There is, in the" management of such extensive interests, much virtue in stability and although great and abvions improvements should not be declined, chan ges should ncvei be made without tho ful lest examination, & Ihc clearest demonstra tion of their practical utility. In the histo ry of the past we have an assurance that this safe rule of action will not be departed from in relation to tho public lands; nor is it believed that any necessity exists for in terfering with the fundamental principles of the system, or that tho public mind, even in the new States, is desirous of any radi cal alterations. On the contrary the gener al disposition appears to be to make such modification only as will the more effectu ally carry out the original policy of filling our new Stales and Territories with an in1 duslrious and independent population. Tho modification most persrvcringly pressed upon Congress, which has occupi ed so much of its time for years past, and will probably do so for a long lime to come, if not sooner satisfactorily adjusted, is a reduction in tho cost of such portions of the public lauds as arc ascertained to bo unsaleable at the rate now established by law, and a graduation, according to their relative value, of tho prices at which they may hereafter be sold. It is worthy of consideration whether justice may not be done to every interest in this matter, and a voxed question set at rest, perhaps forever by r. reasonable compromise of conflicting opinions. Hitherto after being offered at public salo, lands have been disposed of at ono uniform price, whatever difference there might be in their intrinsic value. Tho leading considerations urged in fa vor of the measure referred to are, that in almost all tho land districts, and particular ly in those in which tho lands have been long surveyed and exposed to sale, thorc are still remaining numerous and large tracts of every gradation of value, from tlie Government price downwards; that these lands will not be purchased at tho Govern ment price, so long as belter can be conve niently obtained for the samo amount; that there aro large tracts which even tho im provements of tho adjacent lands will never raise to that price; and that tho present uni form price, combined with their irregular value, operates to prevent a dcsirablo com pactness of settlement in the now States, and to retard the full dcvclopcmcut of that wise policy on which our land system is founded,' 16 the injury not only of tho scv oral States where the lands he, but of Ihc United States as a wliolo. The remedy proposed has been a reduc tion of price according to the length of timo tho lands have been in market, without refoicnco to any other circumstances. The certainty that tho cfllux Of limb would not always in such cases and perhaps not oven generally, furnish a true criterion of value; and the probability that porsons resjding in tho vicinity, as tho period for the' reduction of prices approached, would postpone pur chases thoy would otherwise make, for tho purposo of availing themselves of tho Ibwer price, with other considerations of a simi lar character, have hitherto been successful ly urged to defeat tho graduation upon time. May not all roasonablo desires upon this subject bo satisfied without encounter ing any of these objections? All will con qeue tho abstraof principle, that tho price of tho public lands should be proportioned to their relative value, so far as that can bo accomplished without departing from the ride heretofore observed; requiring fixed priced in cases ofprivato entries. The difficulty of tho subject seems to lie in tho mode of ascertaining what that value is. Would not the safest plan bo that which has been adopted by many of the Slates as the basis of taxation an actual valuation of lands, and classification of them into dif ferent rates? Would it not bo practicable and expedient to cause the relative valuo ol' the public lands in the old districts, which have been for a certain length of lime in market, 10 be appraised, and classed into two or more rales below the present mini mum price, by iho officers now employed in this branch of the public service, or in any other mode deemed preferable, and to make those prices permanent, it upon the coming in of the report, they shall prove satisfactory to Congress? Cannot all tho objects of graduation bb accomplished in this way, and the objections which have hitherto been urged against it avoided? It would seem to mo '.hut such a step, with restriction of tho sales to limited quantities, and for actual improvement, Would be free lrom all just exception. By tho full exposition of the Value of the lands thus lurnishcd and extensively pro mulgated, persons living at a distance wonld be informed of their true condition, and en abled to enter into competition with those residing m tho vicinity; the means ol ac quiring an independent homo would be brought within the rcacli of many who arc unable to purchase at present prices; the population of the new States would be made more compact, and largo tracts would be sold which would otherwise remain on hand; not only would the land bo brought within tho means of a larger number of pur chasers, but many persons possessed of greater means would be content lo settle on a larger quantity of the poorer lands, rath cr than emigrate further west in pursuit of a smaller quantity of better lands. Sucl a measure would also seem to be more eon sistent with the policy of the existing laws t at ol converting the public domain 10 cuiuvaicu larms owned bv their occu pants. That policy is not best promoted by sending emigration up the almost inter unliable streams ol tho West, to occupy n groups the best spots of land, leaving im incuse wastes behind them, and enlarging the frontier beyond the means of the Gov ernment to afford it adequate protection but in encouraging it to occupy, with rca sonablo (leusoness, the territory over whicl it advances, and find its best defence ii the compact front which it presents to tho Indian tribes. Many ol you will bring to inc consideration ol tho eubject the advanta ges of local knowledge and greater experi ence, and a.ll will be desirous of making an daily and final disposition of every disturb ing question in regard to this important in icrcsi. ii incsc suggestions shall in any decree rontributc to the accomplishment ol so important a result, it will allord me sincere satisfaction. In some sections oflhe country, most of I.. 11! 1 1- 1 I it l .1 win piiiiuc rums nave ueen sold, and the registers and receivers have very little to do. It is a subject worthy of inquiry whether, in many cases, two or more dis tricts may not bo consolidated, and the number of persons employed in this busi ucss considerably reduced. Indeed, tho time will come whon it will be triio policy of the General Government, as to somo of the Slates, to transfer to thorn, for a roa sonablo equivalent; all the refuse and un sold lands, and to withdraw the machinery ol the federal land offices altogether. All who tako a comprehensive view of our fed oral system, and believe that one ol its greatest excellencies consists in interfering as little as possible with the internal con corns of tho States, look forward with grca micrcsi to this result. A 'modification of ihe existing laws respect to tho prices of tho public lands inigiii ;uso nave a mvorauie lniiuenco on tho legislation of Congress in relation to another branch of the subject. Many who have not tho ability to buy at present pri ces, settle on those lands, with the hopo of acquiring from thoir cultivation tho means of purchasing under pre-emption laws, from timo to timo passed by Congress. For this encroachment on the rights of the United States, they excuse thonisr-lves un der tho plea of their own necessities; tho fact that they dispossess nobody, and only ente;- upon the waste domain; that they give additional value to tho public lands in ihcir vicinity, and their intention ultimate ly to pay tho Government prico. So much weight has from timo to timo been attached to theso considerations, that Congress have passed laws giving actual settlers on the public lands a right of pre-emption to the tracts occupied by them at tho minimum price. These laws have in all instances been retrospectivo in their operation, but in a fow yeais after their passage, crowds of new settlers have been found on tho pub lic lands, for nimilar reasons, and under liko expectations, who have been indulged with the sarno privilege. This course of legislation tends to impair public respect foi the laws of tho country. Either tho laws to provont intrusion upon, tho public lands should be executed, or, if that should bo impracticable or inexpedient, thoy should bo modified or repealed. If the public lauds arc to bo cQiisidorcd as opon to bo occupied by any, thoy should, by law, bo thrown opon to all. That which i intended, in all instances to bo legalized, should at once be made le gal, that those who aro disposed to conform to tho laws may enjoy at least equal privi leges with tnoso who aro nor. lint it is not believed to bo tho disposition of Con gress to open tho public lands to occupancy WlllUHll lUgUlill I'llUIUB Ullll 1.1 1I1UI11 Ol 1110 Government price, as such a cnurso must tend to worse evils than tho credit system, which it was found necessary to abolish. It would seem, thcroforo, lo bo tho part of . i i i ' Wisuoia anu suiuiu iiuiiuv iu remove, as far as practicable, tho causes which pro duce intensions upon tho public lands, and then take cnicicnt steps to prevent them m future. Would any single measure be so effec tive in removing all plausible grounds for those intrusions as tho graduation of prico already suggested? A short period of in dustry and e'Conoihy in any part of our country would enable the poorest citizen to ' accumulate tho means to buy a home at tho lower prices, and leave him wUhout an apology for settling on lands not his own. If ho did not, under such circumstances, he would enlist no sympathy in his favor; and the laws would bo readily executed, without doing violence to public: opinion'. A large portion of our citizens have scal ed themselves on tho public lands, without authority, sinco the passage of the last pre emption law, and now ask the enactment of another to enable them to retain tho lands occupied, upon payment of tho min imum Government price. They ask that which has been repeatedly granted before. If tho future may be judged of by the past, little harm can be dono to the interests of tho Treasury by yielding to their request. Upon a critical examination, it is found that the lands sold at the public sales since the introduction of cash payments in 1820, have produced, on an average, the uclt rev enue of only six cents an acre more than tho minimum Government price. There will bo more productive. The Govern ment, therefore, lias no adequate pecuniary interest to induce it to drive these pcoplo from the lands thoy occupy, for the purposo of selling them to others. Entertaining these views, I recommend thcpassjgo of a pre-emption law for their benefit, in connection with tho preparatory steps towards the graduation of tlie prico of the public lands, and further and more ef fectual provisions to prevent intrusions hereafter. Indulgence to those who have settled on these lands with expectations that past legislation would bo made a rule for the future, and at the uamo lime remo ving tho most plaustb'.o ground on which intrusions aro excused, and adopting moro efficient means to prevent them hereafter, appear to me tho most judicious disposition which can bo made of this difficult subject. The limitations and restrictions to guard a gainst abuses in the execution of a pre-emption law, will necessarily attract the careful attention of Congress, but under no circum stances is it considered expedient to au thorize floating ilaims in ai y shape: They have been heretofore, ahd doubtless would be hereafter, most prolific sources of fraud and oppression, aud instead of opera ting to confer tho favour of the Govern ment on industrious settlers, are often nsod only to minister to a spirit of cupidity at tho expense of tho mom meritorious of that rla.'s. The accompanying report of tho Secre tary of War will bring to your viow tho state of the army, aud all the various sub jects confided to the superintendence of that officer. The principal part of the army has been concentrated in Florida, with a' view, and in the oxpectmion, of bringing tho war in that territory to a speedy flosc. Tho ne cessity of stripping tho posts on tho mari time and inland frontiers of their entire garrisons, for the purposo of assembling in the field an army of less than four thousand men, would seem to indicate the necessity of increasing our regular forces; and tho superior efficiency, as well as greatly di minished expense of tiiat description of troops, recommend this measure as ono of economy as well as of expediency. I re fer to the report for tho reasons which havo induced tho Secretary of War to urgo tho reorganization and enlargement of tho staff of tho army, and of the ordinance corps, in which I fully concur. It is not, however, compatible with the intcicst of tho people to maintain in timo of peace, a regular force adequato to the de fence of our extensive frontiers. In peri ods of danger and aIarm,'wo must rclv prin cipally upon a well organized militia; and somo general arrangement that will render this description of forco moio ofiicicnt, has long been a subject of anxious solicitude. It was recommended to tho first congress by General Washington, and has been sinco frequently brought to your notice, and re cently its importance strongly urged by my inmicdiatp predecessor. Tho provision in tho constitution that renders it necessary to adopt a uniform system of organization for tho militia throughout the United States, presents an insurmountable obstacle to an efficient arrangement by tho classification lierotoforo proposed, and I invito your at tention to tho plan which will bo submitted by tho Secretary of War, for tho organiza tion ofyolunteor corps, and tho instruction of militia officers, as moro simplo and prac ticable, if not equally advantageous, as a. general arrangement of tho whole militiaof tho United Slates. A modorato incroaso of tlio corps, both of military and typographical ongineors, lias boon moro than onco recommended by my predecessor; and. mv conviction of tho
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