wiisl sbufcefl of rcrexiwo haVc been, increased by an issue of Traasury notci of which less than eight millions of dollars., including interest and princi pal, will be outstanding at the end of tho year and by the sale 6fonc of the bonds of thoBahk of the United States, fot 2,354,871. The aggregate of means from these and other sources, with the balance on hand on the 1st of JaA. last, has been applied to the pay ment of appropriations by Congress. The whole expenditure for the year on their i'ccountjincluding the redemption "of more ihan eight millions of TreaS qrcy notes, constitutes an aggrcgato of about fifty million of dollars, and will still leave in the Treasury the balance before ataied. Nearly eight millions of dollars of Treasury notetfare to be paidduringtho 'coming year, in addition to tho ordina ry appropriation for tho support of Government For both these pur poses, the resources of tho Treasury will undoubtedly be sufficient, if tho charges upon it are not increased be yond the annual estimates. No excess, however, is likely to exist; nor can the postponed installment of thesurplus re venue be deposited with the States nor any considerable appropriations be yond the estimates be made, without causing a deficiency in the Treasury. The great caution, advisable at all limes, of limiting appropriations to tho wants of the public service, is render ed necessary at present by the prospec tive rapid reduction of the tariff while the viligant jealousy evidently excited among the people by the occurrences of the last lew years, assures us that they expect from their representatives, and will sustain them in the exercise of, the most r igid economy. Much can be effected by postponing appro priations not immediately required lor the ordinary public service, or for any pressing emergency; and much by reducing the expenditures where the entire and immediate accomplishment of the- object in vie w is not indispensa bly.. When we call to mind tho recent and ex Iremo embarrasments produced by excessive issues of bank paper, aggravated by tho un forsecn withdrawal of much foreign capital, and the inevitable derangement arising from tho. distribution of the surplus revenue a mong tho States aa required by Congress, and consider tho heavy expenses incurred by tho removal of Indian tribes; by tHo mil itary operations in Florida; and on account of tho unusually large appropriations made at the last two annual sessions of Cogross for other objocts, we have striking evidence, in tho present efficient state of our finances "of the abundant Tosources of the country to fulfil all its obligations. Nor is it legs grat ifying tofittd that tho general business of the pommunity, deeply affected as it has been, is reviving with additional vigor, chastened by the lessops of the past, and animated by "Ihe hopes of thb future. By the curtail ment of paper issues; by eutbing the san guine arid adventurous spirit of speculation; and by the honorable application of all avail able means to the fulfilment of obligations, abroad, and facility socured to all tho opera tions of trade. Tho agenoy of lh'i Government in pro ducing these results has been as efficient as its Bowers and means permitted. By with holding from the states tho deposit of the rounu insi&imcm, ana leaving several mil lions at long credits with the banks, princi pally in ono Bection of tho country, and more immediately beneficial to it; and, at tho same time, aiding the banks and com mercial communities in other sections, by postponing the payment of bonds for duties to the amount of between four and five mil lions of dollars; by an issue of Treasury notes as a means to enable the Government to meet. the consequences of their induleen tea; but affording, at the same timo, facili ties tor lenujtanco and exchange and by steadily declining to employ as general de positories of the public revenues, or receive the notes of all banks which refused to re deem them With specie; by these measures, aided by the favorable action of some of the banks, and by tho support and co-operation of a large portion of the community, we havo witnessed ad early resumption of Specid payments in our great commercial capital, promptly followed in almost every part Of tho United States. This result has been alike salutary to the true interests of agriculture, commerce, and manufactures: to public morals, respect for the laws, and that cenhuencepjetween man and man which is so essential in all our social relations i he contrast between tho suspension of im ana that ot 1337 is most striking. The short duration of the latter; tho prompt jcoiuiBuuu ui ousinetjj, we eviueni uenotits resulting from adherence by the Govern menl to 'the cnnnlitntinnnl atnmlml f ,,. instead df sanctioning the suspension by the receipt of irredeemable paper; and the advantages derived from the large amount of specie introduced into the country pre vious to 1B37 afford a valuable illustration ot the truo policy c-i the Government in suoh a crisis; nor can the comparison fail to remove the impression that a national bank s necessary jn such emergencies. Not on ly were apecio payniuiiiB resumed wit hont it aid but esohanffes have alin hMn - w aiu, out changes nateaiso been moro rapidly roetorod thm when it oxfetcd; there by showing that pnyato capital, enterprise and priidencc, aro fully adequate to theso ends. On all these points experience scorns to havo confirmed tho viows heretofore sub mitted to Congress. AVc have been saved tho mortification of seeing tho xlissfrcsscs of the community for tho third time seized on to fasten upon tho country so dangerous an institution; and wo may also hope that tho busincs of individuals will hereafter bo relieved from tho injurious effects or a con tinued agitation of that disturbing subject. The limited influence of a national bank in averting dorangement iu the exchanges of tho country,or in compelling tho resumption of specie payments, is now not less appar ent than its tendency to increase in ordinate speculation by sudden expansions and con tractions; its disposition to create panic ank embarrassment lor the promotion of its own designs; its interference with politics, and its far greater power for evil than for good, either in regard to tho local institutions or tho operations of Government itself. What was, in these respects, but apprehension or opinion wiien a national oanK was nrsi es tablished, now stands confirmed by humili ating experience. Tho scenes through which we have passed conclusively prove i . ... 1 now uuio our commerce, agriculture, manu factures, or finances, require such an insti tution, and what dangers arc attendant on its power a power, I trust, never to be conferred by tho American people upon their government, and still less upon mdividauls not responsible to them for its unavoidable abuses. My conviction of the necessity of further legislative provisions for the safe keeping and disbuisement ot the public moneys, and my opinion in regard to tho measure best adapted to the accomplishment of thoso objects, have been already subnunitted to you. These have been strengthened by recent events; and, in the full conviction that time and experience must still further dem onstrate their propriety, I feel it my duty, with respectful deference to tho conflicting viows of others, again to invito your atten tion to them.- With the exception of limited sums de posited in the few banks still employed un der tho act of 1830, tho amounts received for dutied, and, with very inconsiderable exceptions, those accruing from lamb also, have since, tho general suspension of spo- cie payments by tho deposito banks, been kept and disbursed by tho Treasurer, undor his general legal powers, subject to the su perintendence of tho Secretary of the Treas ury. The propriety of defining moro spe cifically, and of regulating by law, the exor cise of this wide scope of Executive dis cretion, has been already submitted to con gress. A change in the office of collector at ono of our principle ports, has brought to light a defalcation of the gravest character, the particulars of which will be laid befoio you in a special report irom tno secretary ol the Treasury. By his report and tho ac companying documonta, it will bo seen that the weekly returns of the defaulting officer apparently exhibited, throughout, a faithful administration of the atlairs entrusted to his management. It, however, now appears that he commenced abstracting the public moneys shortly after his appointment, and continued to do so, progressively increasing me amount, lor the term ot more than sev en years, embracing a portion of tho period during which the public moneys were de posited in the bank of the United States, the whole of that of the state bank deposite system, and concluding only on his retire ment from office, after that system had sub stantially tailed, in consequence ot the sus pension of specie payments. Tho way in which tbis defalcation was bo long concealed, and the steps taken to indemnify the United States, as far as prac ticable, against loss will also bo presented (o you. The case is ono which imperatively claims the attention of Congress, and fur nishes tho strongest motive for the establish ment of a more severe and secure system, for the safe keeping andjdisbursement of the public moneys than any that has heretofore existed. It seems proper at all events, that, by an early enactment, similar to that of other countries, the application of public money by an officer of government to private uses, should be made a felony, and visited with severe and ignominious punishment. This is already, in effect, the law in resneet tn to the mint, and has been productive of the most salutary results. Whatever Byslem is adopted, such an enactment would be wioo as on muepenueni measure, since much of the public moneys must, in their collodion and ultimate disburseneat, pass twice through the hands of public officers, in whatever manner they are intermediately kept. The government, it must be admit ted, has been from its commencement com paratively fortunate in this respect. But the appointing power cannot always be well advised in its selections, and the experience of every country has shown that public offi cers aro not at an times proof against temp tation. It is a duty, therefore, which the government owes, as well to the interests committed to its care, as to tho officers themselves, to provide every guard against transgressions of this character that is consis tent with reason and humanity. Congress cannot ue too jealous ot the conduct of those who nrft rintriistml wilt, dirt nnMtn mnn.. and I shall at all times be disposed to en courage a watchful discharge of this dutv. If a more direct co-operation on the part of ..u. in ik. .,.;..,:.:. n.. " ..i....!.. ....... . . . i r 1 , 7, 1 wm cohuuom tion m puutic auaus, ot the commun ty at of tho officers entrusted whh the v hr, iu-r . m. .5. -r j and application 6f the public money b deemed desirable, it will givo mo pleasure to assist in tho establishment of any judi cious and constitutional plan by which that object may bo accomplished. You will, in your wisdom, determine upon thopropricty of adopting such a plan, and upon tho mea sure necessary to its effectual execution. When the lato bank of tho United States was incorporated, and mado tho depository of the public moneys, a right was reserved to congress to inspect, at its pleasure, by a committco of that body, tho books and the proceedings of the bank. In ono of tho States whose banking in stitutions are supposed to rahk amongst tho first in point of stability, they aro subjected to constant examination by commissioners appointed forjthat pUrpose,and mush of the success of its banking aystem is attributed to this watchful supervision. Tho same course has also, in view of its beneficial op oration, been adopted by an adjoining State favorably known for the care it has always bestowed on whatever relates to its finan cial concerns. I submit to your considers- ion whether a committee of congress might not be profitably employed m inspecting, at such intervals as might be deemed proper the affairs and accounts of officers entrusted with the custody of the public moneys. Tho frequent performance of this duty might be made obligatory on the committee in respect to those officers who havo large sums in their possession, and left discre tionary in respect to others' They might report to the Executive such defalcations as were found to exist, with a view to a prompt removal from office unless the default was satisfactorily accounted for; and report, al so, to Congress, at the commencement of each session, the result of their examina tions and proceedings. It docs appear to me that, with a subjection of this clasB of public officers to the general super vision of tho Executive, to examinations by acommitte of Congress at periods of which they should haro no previous notice, and to prosecution and puhisment as for felony for every breach of trust, tho safe keeping of the public moneys, under the system proposed, might be placed on a su ror foundation that it has evor occupied since the establishment of the Uovernmont. Tho Secretary of the Treasury will lay before you additional information contain ing new details on this interesting subject. To these I ask your early attention. That it should have given rise to great diversity of opinion cannot be a subject of surprise. After the collection and custody of the pub lic moneys had been for so many years con nected with and made, subsidiary to, the advancement of private interests, a return to tho simple anil self-denying ordinances of the Constitution, could not but bo diffi cult. But time and free discussion elicitittng the sentimonts of the people and aided by that concilntory spirit which have ever characterized their course on great emer gencies, were relied upon for a satisfactory feetilemcnt of the question. Already has this anticipation on one important point at last the impropriety of diverting public money to private purposes boen fully re alized. There is no reason to suppose that legislation upon that branch of the subject would now be embarrassed by a difference of opinion, or fail to receive the cordial sup port of a large majority of our constituents. The connection which formerly existed be tween theGovernment & banks.was in reali ty injurious to both, as well as to the gene ral interests of tho community at large. It aggravated the disaster of trade and the de rangements of commercial intercourse, and administered new excitcmont and additional means to wild and reckless speculations, the disappointments of which throw the country into convulsions of panic, and all but produced violence and bloodshed The imprudent expanse of bank credits, which was the natural result of tho command of the revenues of tho State, furnished the re sources for unbounded license in every spe cies of adventure, reduced industry from its regular and salutary occupations by the hope of adundancs without labor, and de ranged the social state by tompting all trades and professions into the vortex of specula tion on remote contingencies. The same wide-spreading influence im peded also tho resources of theGovernment, curtailed its usual ( operations, embarrassed tho fulfilment of its obligations, and seri ously interfering with the execution of the laws. Large appropriations and oppress ive taxes are the natural consequences of such a connection, since they increase the profits of those who are allowed to use tho public funds and make it their-interest that money should be accumulated and expend itures multiplied. It isjfhus that a concen trated money power is tempted to become an active agent in political affairs, and all past experience has shown on which side that influence will be arrayed. We deceive ouralves if we suppose that it will ever be found asserting and supporting the rights of tne community at large, in opposition to the claims of the few. In a Government whose distinguishing characteristic should be a diffusion and e qualization of its benefits and burdens, tho advantage of individuals will be augmented at tho expense of the mass of llio people. Nor is it the nature of combinations foi the acquisition of Legislative influence to con fine their interference to the single object for which they wore originally formed, The temptation to extend it to other matters, is, on tho contrary.not unfrequently, too strong to oe icsisteu. j no inuuence in the direc I "uv "j utuiwivTJj in igj an jiii uaiigBf or being sensibly and Injuriously affected by ! giving to a comparatively small, uut very efficient class, a direct and exclusive per sonal interest in so Important a portion of tho legislation of Congress as that which relates to tho custody of tho public monoys. If laws acting upon private interest cannot always bo avoided, they should bo confined within tho narrowest limits, and left where ever possible, to tho Legislatures of the Slates. When not thus restricted, thoy lead to combinations of powerful associa tions, foster an influence necessarily selfish, and turn tho fair course of legislation to sinister ends, rather than to objects that ad vance public liberty, and promote tho gene ral good. The whole subject now rests with you, I cannot but express a hope that some defi nite measure will be adopted at the present session. It will not, I am sure, bo deomcd out of placo for me here lb remark, that the decla ration of my views in opposition to the po licy of employing banks as deposit dies of tho Government funds, cannot justly bo construed as indicative of hostility; official or personal; to those institutions; or to re peat, in this form, and in connection with this subject, opinions which I have uniform ly entertained, and on all proper occasions, expressed. Though always opposed to their creation in the form of exclusive privi leges, and as a State magistrate aiming by appropriate legislation to secure the com munity against the consequences of their oc casional mismanagement, I have yet cer wished to see them protected in the exer cise of rights conferred by law, and havo never doubted their utility, when properly managed, in promoting the interests of trade, end, through that channel, the other inter ests of the community. To th'e General Government they present them selves merely an State institutions, having no ne cessary connection with iu legislation, or adminis tration. Like other Stale establishments, thoy may be used or not in contacting the affairs' of Govern ment, aa public policy and the general interest of the Union may seem to require. The only safe or proper principlo upon which their intercourse with the Government can be regulated, is that which reg ulates their intercourse with the private citizen theconferring of mutual benefits. When tho Gov ernment tan accomplish a financial oporation bet tar with the aid of the banks than without, it should be at liberty to seek that aid as it would the services of a private banker, cr other capitalists or agents, giving the preference to those who will serve it on the best terms'. Nor can there ever exist an inter est in tho officers of the General Government, as such, inducing them to wr.barrrss or annoy the 8ute banks any morethan to incur the hostility cf any other class of State institutions, or of private citizens. It is not in the'nature of things that hos tility to those institutions can spring from this source, or any opposition to their course of business, except when they themtelvea depart from the ob jects of their creation, and attempt to usurp powers not comcrrci upon them, or to subvert the standard of value established by the Constitution. While opposition to their regular operations cannot exist in this quarter, resistance to any attempt to make the Government dependent upon them for the success ful administration of public affairs, is a matter of du ty, as I trust it ever will be of inclination, no mat ter from what motive or consideration the attempt may originate. It is no more than just to the banks to eay, that, in the late emergency, most of them firmly resisted the strongest temptations to extend their paper is sues, when apparently sustained in suspension of specie payments by public opinion, even though, in some cases, invited by legislative enactments. To this honorable course, aided by the resistance of the General Government, acting in obedience to theCon ftitution and Laws of the United Slates, to the in troduction of an irredeemable paper medium, may be attributed, in a great degree, file speedy restora tion of out currency to a sound state, and the busi ness of the country to its wonted prosperity. The banks have but to continue in the sitmo safe courso, & be content in their appropriate sphcre,to avoid all interference from the General Government, and to derive from it all the protection an 1 benefits which it bestows on othcrStatecstaolUhmentsn the people of the States, and on die Stales themselves. In this, their true position, they cannot but secure the con fidence and good wtll of the )ple and the Govern ment, which they can only lows when, leaping from their legitimate sphere, they attempt to contrpl the legislation of the country, ond pervert the operation of the Goernment to their own purposes. Our experience under the an passed at the last ession, to grant pre-emption rights to settlers on the public lands, has as yet licen too limited to ena ble us to pronounce with safety upon the efficacy of its provisions to carry out the wise und. liberal poli cy of the Government in that respect. There is, however, tho best reason to anticipate favorable re sults from its operation. The recommendations for merly submitted to you in respect to a graduation of the public lands, remain to be finality acted upon. Having found no reawm to change tho views then expressed, your attention to them is again respect fully requested. Every proper exertion has been made and will lie continued to carry out tho wishca of Congress in relation to the tobacco trade, as indicated in the se veral resolutions of the House of Rcpresntativcs and Uip legislation of the two branches. A favorable impression has, I trust, been mado in the different foreign countries to which particular attention has been directed, and although we cannot hope for an early change in their policy, as in many of them n convenient and largo rcvenuo is derived from mo nopolies in the fabrication and salo of thb article, yet, as thcfce monopolies are really injurious to tho people where they are cstiblUhcd, and the revenue derived from them may be loss injuriously and with equal facility obtained from another aud a liberal system of administration, we cannot doubt that our efforts will be eventually crowned with success, if persisted in with temperate firmness, and sustained by prudent legislation. In recommendiug to Congress tho adoption of the necessary provisions at this session for taking tho next census, or enumeration of tho inhabitants of the United States, the suggestion presents itself wiicwcr mo scopo 01 me measure migtit not bo usefully extended, by causing it to embraro authen tic statistical returns of the great interests specially entrusted to, or necessarily affected by tho legisla tion of Congress, The accompanying roport of the Secreta ry of War presents a satisfactory account of tho state of tho army, and of the sever al branches of the public servico confided to the supcrtntendance of that officer. Tho law Incrensuig and organizing th8 military establishment of tho United Slates has bBpn nearly carried into effect, and thd army has been extensively and usefully employed during tho past season. I would again call ttl vour noticn tU u. jects connected with mid essential to tho military uoienccs oi tne country, which were submitted to you at tho last ecssion' but which were not acted upon as is sunl posed, for want of time, The mostimpor. lant of them is tho organization of the mili. tia on tho raarilimo and inland frdhticrs This measure is deemed important.as it is be lieved that it will furnish an effectivo volun teer force in aid of the regular army,and may form tho basis for a general system of or ganization for the entire militia of the Uni led States. The erection of a national foundry and gunpowder manufactory, and ono for making ehiall arms, the latter to bo situated at sonic point west of ihe Alleghe ny mountains, nil appear to bo of sufficient importance to be again urged upon .your at tention. The plan'proposed by the Sec'y of War for the distribution of tho forces of tho Uni ted States in time of peace, is well oaloul. ted to promote regularity and ecomomy in alio fiscal administration of the service, to preserve the discipline of Ihe i troops, and to. render them available maintainancc of tho peace and tranquility of the country. With this view, likewise, I recommend the adopt lion of the plan presented by that officer for the defence of tho western fiontier. The preservation of the lives and property of our fellow citizens whd are settled upon that border country as well as the existence of tho Indian population, which might la tempted by our want of preparation To iusri on their own destruction and attack tho white settlements, all seem to require that this subject should be acted upon without delay, and the War Department authorized to place that country in a state of completo defenee against any assault from the numer ous and warlike tribes which are congreca ted on that border. It offords me sincere pleasure to bo ablo to apprize you of tho entire removal of tho Cherokee nation of Indians to their new homes west of the Mississippi. The moa surcs authorized by Congress at its last session with a view tc the long standing controversy with them, have hacf the hap piost effects. By an agreement concluded with them by tho commanding general in that country, who has performed tho duties assigned to him on the occasion with com mendablecnorgy and humanity, their remo moval ban been principally under the con duct of their own chiefs, and they hava emigrated without any apparent reluctance. Tho successful accomplishment of this important object; the removal, also, of ths, entire Creek nation, with the exception of a small number of fugitives amongst tho Seminolea in Florida; the progress already mado towards a speedy completion of tho removal of the Chickasaws, the Chocbwa the Pottawatamies, the Otawas, and tho Chippewas, with the extensive purchases of Indian lands during ihe present year, have rendered the speedy and successful result of the long established policy of tho Government upon the subject of Indian af fairs entirely certain. Ths occasion is, there fore, deemed a proper one to place this pol icy in surh a point of view as will exoner ate the Government of the United States from the undeserved reproach which has been cast upon it through several succcse'ivo administrations That a mixed occupancy of the same territory, by the white and red man, is incompatible with the safety or liapi piness of either, is a position in respect lo which there has long since ceased to be room for a difference of opinion. Reaioa and experience have alike demonstrated itf impracticability. The bitter fruits of every attempt heretofore to overcome the barriers interposed by nature, have only been de. struction, bolh physical and moial, lo the Indian; dangerous conflicts of authority be tween the Federal and Stale Governm'ente; and detriment to the individual prosperity of the citizen, as to the general improvement of the country. The remedial policy, the principles of which were settled more than thirty yeais ago, under the administration of Mr. Jeffer son, consists in an extinction, for a fair con sideration, of the title lo all the lands slill occupied by the Indians within ihe stales and territories of tho United States, their removal to a country west of the Mississip pi, much more extensive, and bettor adapt ed to their condition, than that on which they then resided; the guarentee lo thorn b the Unitod States, of their exclusive poi session of that country forever, exempt from all intrusions by white men, with am ple provisions for their security against er ternal violence and internal dissentkms, sni the extension to them of suitable facililiei for their advancement in civilization. Thit has not been the noliev nf nirizr nrl. ministrations only but of each In succession dince the hrst ntipmnt in' ...... : .... ..n jiiui ui mr. juonroe. All hare labored io: lid jirrnmnltotimm-i. ...rL jjv . .1. . ' niy Willi Ulliurcill uv nrrrffa rf oiinan.a 'PL- t .iu mauuci ui no i 1 1 t 1 1 1 1 1 n-ia it la ipi.n i u , : . . . . . "ui i a iiuij. iiuiii iiinn in lime, l'ii uii use to conilicis 01 ODininn nni iimtll mi uuiaiiuiia. uul in rpnnnp tn frtM irrici n.i and necessity nf tha inA .ui, nun, iul- ueiMiimnrr. ex tei n t num. m wiu mum oi any calm, judicious, disinter ested friend of the Indian race, accustoraeJ to rellection and enlightened by experienct Occupying.iho double character, of cor tractor on his own account, and guardian fc tho parties contracted with, it was hardil' to be expected that the dealings of the Fei
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