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