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