luting tlie next year, will, H is believeJ, be "sufficient to enable llie Governruont to meet every engagement, and leave a suitablo bal ance in Uo Treasury at the end of the year, if the romedial measures connected with the customs and tho public lands, heretofore re commended, shall be adopted, a.id the new Appropriations by Oongiess shall not carry me cxpeuurures beyond mo ollicial csti mates. The new system established by Congress for tho safekeeping of tho public money, prescribing the kind of currency to be re ceived for tho public revenue, and providing additional guards and securities against los ses, nas now ueen several months in opora tion. Although it might bo premature, up on an experience of such limited duration, to form a definite opinion in regard to the extent of its influences in correcting many evils under which the Federal Government and the country have hitherto suffered cs pecially those that havo grown qui of bank ing expansions, auepreciaicu currency, ana official defalcations : yet it is but right to say that nothing has occurred in tho practi cal operation of the system lo weaken in the slightest dogreo, but much to strengthen, the confident anticipations of its friends. The grounds of these have been heretofore no fully explained as to require no recapitu lation. In respect to tho facility and con venience it affords in conducting the public sorvice, anil the ability or the Government to discharge throur'li its agency cvorv duty nttendant on the collection, transfer, and dis bursement of the public money with promp titude anu success, l can say, Willi conti nence, that ths apprehensions of thoso who felt it to be their duty to opposd its adoption nave proved to be unfoundod, On tho con trary, this branch of tho fiscal affairs of the Government has been, and it is believed may always be, thus carried on with every desirable facility and security, A few chan ges and improvements in the details of tho system, without affecting any principles in volved in it, will be submitted to you by the Secretary of the Treasury, and will, I am sure, recoive at your hands that attention to which they may, on examination bo found to be entitled. I hare deemed this brief summary of our fiscal affairs necessary to tho due perform ance of a duty specially enjoined upon me by the constitution. It will serve also, to illustrate miro fully the principles by which I havo been guided in reforence to two con tested points in our public policy, which were earliest in their developeroent, and have been more important in their, conse quences, than any that have arUcu under our complicated and difficult, yet admirable, system of governments allude to a national debt, and a national bank. It was in these that tho political contests by which the country has been agitated ever since the adoption of tho constitution, in a great me.v sure, oiiginated: and there is too much rea son to apprehend that the conflicting inter ests and opposing principles thus marshall ed, will continue, as heretofore-, to produce similai, if not aggravated consequences. Coming into office the declared enemy of both,I havo earnestly endeavored to prevent a resort to either. The consideration that a largo public debt affords an apology, and produces, in some degree, a necessity also, for resorting to a system and extent of taxation which is not only oppressive throughout, but likewise so apt to lead, in the cud, to the commission of that most odious of all offences against the principles of republican government the prostitution of political power, conferred for the general benefit, to the aggrandizement of particular classes, and the gratification of individual cupidity is alone sufficient, in dependently of the weighty objections which have already been urged, to render its creation and existence the sourcos of bitter and unappeasable discord. If we add to this, itu inevitable tendency to produce and foster extravagant expenditures of the public money, by which a necessity is cre ated for new loans and new burdens on the people; and, finally, if we refer to the ex amples of every' Government which has ox isted, for proof how seldom it is that tho system, when onco adopted and implanted in tho policy of a country, has failed to ex pand itsetf, until public credit was exhaust ed, and the people were no longer able to endure its increasing weight.it seems impos sible to resist tho conclusion, that no benefits resulting from its career, no extent of con quest, no accession of wealth to particular classes, nor any, nor all its combined ad vantages, can counterbalance its ultimate but certain results a splendid government, and an impoverished people. If a national bank was, as is undeniable, repudiated by the framers of tho constitution ns incompatible with the rights of the States nnd the liberties of the people; if, from the beginning, it has been regarded by largo portions of our citizens as coming in direct collision with that reat and vital amend rnentofthe constitution, which declares that all powers uot conferred by that instru ment on the General Government are re reserved to the Stales and to the people; if it has been viewed by them as the first great stop in the march of latitudinous construc tion, which, unchecked, would render that sacred instrument of as littlo value as an un written constitution, dependent, as it would alone be, for its meaning, on the interested interpretation of a dominant party, and affor ding no security to the rights of the minor ity; -if such is undeniably the case, what rational grounds could have been conceived for anticipating aught but determined oppo eition to such an institution at the present day? Could n different result Lave been expec ted, when tho consequences which havo flowed from Its creation, and particularly frpm its struggles to perpetuate its existence had confirmed, in so striking a manner, the apprehensions or its earliest opponents! when It had been so clearly demonstrated that a concentrated money power, wielding so vast a capital, and combining bucIi incal culable means of influence, may, in llioio peculiar conjuncturea to which this Govern ment is unavoidably exposed, prove nn overmatch for the political power of the people themselves! when the truo character of its capacity to regulate, according to ita will and its interests.and the intorests of its favorites , tho value and produotion of the labor and property of every man in this ex tended country, had been so fully and Tear fully developed; when it was notorious that all classes of this great community had, by moans of the power and influence it thus possesses, been infected to madness with a spirit of heedless speculation! when it had been seen that, secure in the support of the combination of influences by which it was surrounded, it could violato its charter, and set tho laws at defiance with impunily; and when, too, it had become most apparent thaf to believe that such an accumulation of powers can ever be granted without tho certainty of being abused, was to indulge in a fatal delusion? To avoid tho necessity of a permanent flfll,, ntlfl ifB !MA(.!t.1.tH ' . . T I -I,., iuuii.iuiv i-onacqueur.es, i nave anvocatea, anu ondervored lo carry into ef fect, tho nolicv of cnnfininir thn finntunriq. lions lor the public service to such objects oniy as are cieariy within the constitutional authority of the Federal On vnrnmnnl nf n v eluding from hs expenses those improvident uiiu unauuionzeu giants ol public money for works of internal were eo wisely arrestotl by the constitution- "v,iu3iiiun ui my prcuecessor, nnu which, if they had not been so checked, WOUld lontT before this limn Inm Snvnlvnit the finances of the General Government in embarrassments far prealcr limn il tfiRf which arc now exnerienced liv anv nf ihn simoo- or limiting all our expenditures to that sim ple, unostentatious, anu economical admin istration of public affairs, which is alone consistent with the character of our institu tions; or collecting annually from the cus toms, and the sales nf nntilin l-inila n ran. ue fully adenuate lo defrav nil ihn pvnonoo. thus incurred, but, under no pretence what- soeuer, to impose taxes upon the people to a greater amoullt than was nnlnallv nivwtn. ry to the public service, conducted upon the principle? i nave siatcu. In lieu of a national bank, or a depen dence upon banks of any description, for the management or our fiscal affairs, I reccom mended the adoption of the system which is now 111 successful nnflratinn.Thiit arctnm affords every requisite facility for tho trans- action oi tito peouniary concerns ot the Go vernment, will, it is confidently anticipated produce in other respects many of the ben efits which haw been from time to time ex nected from tho creation nfn n:itinn.-il haul.' but which havo never linen raliVH? -mmiJI the manifold evils inseparable from wich an inMitution, diminish, to a greater extent than rnillrl lin minmnlilisrl l. .i w "vtHjuwitwu n y l l i j UWICI measure of reform, the patronage nf the Fed eral Government a wise policy in all Go vernments, but moro especially so in uns like ours, which works well only in pro portion as it is made to rely for its support upon tho unbiassc'l ar.d unadulterated opin ions of its constituents; do away, forever.all dependence on corporato bodies, either in tho raising, collecting, safekeeping, or dis bursing the public revenues; and place the Government equally above the temptation of fostering a dangerous and unconstitution al institution at home, or the necessity of adapting its policy to tho views and inter ests of a still more formidable money-power abroad. It is by adopting and carrying out these principles, under circumstances tho most ar duous and discouraging, that the attempt has been made, thus far successrully, to de monstrate to the people of tho United States that a national bank at nil limcs.and a national debt, except it be incurred at a period when the honor and safety of the nation demand the temporary sacrifice of n policy, which should only bo abandoned in such exigencies, are not merely unnecessa ry, but in direct and deadly hostility to tho principles of their Government, a nd" to their own permanent welfare. The progress mado in the developemcnt of these positions, appears in he preceding sketch or the past history and present stale or the financial concerns of tho Federal Go vernment, The fads there stated fully au thorize) the assertion, that all the purposes for which this. Government was instituted have been accomplished during four years of greater pecuniary embarrassment than were before experienced in time of peaae, and in the face of opposition as formidable as any that was ever before arrayed against the policy of an administration; that this has been done when the ordinary revenues of tho Government were generally decreasing, as well from the operation of the laws, as the condition of the nountry, without tho creation of a permanent public debt, or in curring any liability, other than such as the ordinary rosonrces of the Government will speedily discharge, and without tho agency of a national bank. If this view of the proceedings of the Government, for tho period it embraces, bo warrented by the facts ns they are known lo exisl; if the army and navy have been sustained lo the full oxtent authorized by law, and which Congress deemed sufficient for ttie defence of the coiinlav and the pro tection of ita rights and its honor; if this ci vil and diplomatic service has been equally sustained' jf ample provision has been made for the administration of justice and the ex ecution of the laws; if the claims upon pub lic gratitude iii behalf of tho soldiers of thu Revolution have been promptly met; and faithfully discharged, if there havo been no failures in defraying the very largo expendi tures growing out of that long continued and salutary policy or peacefully removing the Indians to legions of comparative-safely and prosperity, if the public faith has at all times, and every wherei been most seruptt I I.. !...-!) I .1-1 ' uvery wncrcf uuuu must 6i;rupti- ilaincd Jy a prompt discharge) of jus, extended, and diversified 1 'P... .... tfnll fl.AA I luusiy luuiiiiaii tho numerous claims on the Treasury; if all theso great and permanent objects, with many olhcrs that might be slated, Jiave, for a seiios of years, marked by peculiar obstacles and dif ficulties, been successfully accomplished without a resort to permanent debt, or the aid of a national bank; hnvo wo not a right lo expect that a policy, tho object of which has been to sustain tho public service indo- Dendeillly of cither nfllincn fruitful sniirnnn of discord; will roceive tho final sanction of a people whose unbiassed and fairly clici teujuagment upon public affairs is never ultimately wronir ? l hat embarrassments in the pecuniary concerns ot individuals, of unexampled ex tent and duration, have recently exiatsd in this as in other commercial nations, is un doubledly truo. To supppse it necessary now to trace thfisn rniprspa In llinir rntmir- ccs, would bo a reflection on the intelligence oi my lellow-citizons. Whatever may liaVO been the nharriritv in tvhin.li Ihn cnh. isct was involved tlurlnf the earlier slairep - c ..... . . . ; a oi tnc rovuision; mere cauuol now be many by whom tho whole question is not fully un dcrstood. Not deeming.it within the constitutional powers oi tno uoneiai Government lo re pair private losses sustained by reverses in business having notionnexion with the pub lie service, either by direct appropriations from the TreaBmv.,nr .menial lnirialntinn designed, to secure exclusive privileges and immunities to individuals or classes in pref erence to. and at thefrennrmn nf. ihn irrnnt , , ' ' -' majority necessarily debarred from any par ticipation in tnem, no alte,mpt to tlo so lias been eitlor made, recnmmendnil. or.r.ncnnr aged, by the present Executive. it is ueiitived, howexer, that the great purposes for tho attainment of. which the Federal Government was instituted have not boen lost sishl of. Intrusted rnlv with certain limited powers, cautiously enuniera .... , o V. J ted, distinctly specified, and defined with .a precision anu clearness winch would seem : . -. i , v .. . , 10 ueiy misconstruction, it has been my rnnslnnl mm tr rnnfinn mt.uolr itifin,i tLa limits so clearly marked out, and so careful ...... .., .u uvj,..M, III 'dbll I. , .11111 (IIU jy guarucu. Having always beeit ot ,opin ion mat tno nest preservative n t in linmn of the States is to be found in a tolal abstin ence from the exercise of all doubtful pow ers on the oart of the Federal Government. rather than in attompts to assume them bv a'looie construction of ihc constitutinn, or an ingenious perversion of its words, I havo i t . i enuoavoreu to nvoiu recommending any measure which I had reason to apprehend would, in the opinion even nf a considera ble minority of my fellow-citizens, bo re garded as (trenching on ihn rights of the States, or tho provisions of the hallowed instrument or our Union. Viewing the aggregate powers or the Federal Govern ment as a voluntary concession of the Sta'es, it seemed to me that euch nnlv Almnhl lm exercised as were at the time intended to be fiven. J have been strenrnliunpd. inn. in iho nrn- priely of this course, by the conviction that an eiioris to go beyond this lend only to produce dissatisfaction' and ilUtrnct. in pv. cito jealousies, and to provoke resistauoo. insieau oi auaing slrepgtt) to the Federal Government, even when "successful, thnv must ever prove a source.of incurable weak ness oy alienating a portion or those adhe sion ig indispensable td tho great aggregate of united strength' and whose voluntarily attachment is, in my 'estimation, far more essential to the efficiency of government Strong in the best of all nnssihln nfrennth the confidence and attachment of all "those who maku up its constituent elements. Thus boliovinrr. it h:iR hnn n nurnnsn n ' - to socuro tn the wholo people, and tp every momoer oi ine conieueracy, by generul, sal utary, and eciual laws alone. iIih hi mfit nf" those republican institutions which it was the ond and aim or the constitution to es tablish, and the imnartial infl nonnn nf ivliir.1. is, in my judgment, indispensable to their perservation. 1 cannot bring mvair to be lieve that the lasting happiness iir the peo ple, the prosperity or tho Stales, or the per manency of their Union, can be maintained by giving prefforenco or priority to any class of citizens in the distribution of Imnp. fits or privilcees. or bv the adnminn nf measures which euricli one portion of the Union at the oxnenso nf nnnilifr- nn, i. r see in the interference of the Federal Gov- ernmont with tho local legislation and re served rights of tho States a remedy for present, or a security against future dan gers. J he first, nnd assurdlv nni tho inct ;m. . . , ..... ,,,w ,wu.,,( portant stop towards relieving thu country iruiu mo conuuion lino which it hail been plunged by excesses in trade, bankinir. nml credit of all kinds, was to nfaee thn Imci. net's transactions of Gdvemmnnt haoir nn .. solid basis; given and receiving in njl coses value for value, and neither 'countenancing nor encouracimrin'oihnfs' thai rlnh, ' .,! tern of credits fiom which it.has been found So diflirull lo escape, .and which lias left nothing behind it but wrecks that, marl; its fatal caiuer. That the financial affairs of the Govern mcnt,arc now, and have been during the wholo pefiqd of these wide-spreading diffi culties, conducted' with a strict and invaria ble regard lo this great fundamental princi ple, and that by the assumplion'and main tenance or tho stand thus taken on the very threshold or the approaching crisis, moro than by any other cause oi causes whatever, tho community ol large has been shielded from the incalculable evils or a general and :.l.r...:. !.. r iiiuuuiiiiu Dupcuaitiii ui specie pay HIGH Is, and n consequent annihilation, for the whole period it' might have lasted, of it just and i M .... I.I n alnniln -.1 f ,,..- . 'It 1. I lie umuuuiu akrtiiuaiu ui vamu, will, It IS UC' levcd, at this period, scarcely bo question cd. A steady adherence on the part of the uovernmeiu, to the policy which has pro dnced such salutary results, aided bv iudi cious Stale legislation, and, what is not less important, by the industry, enterprise, per sovcranco, and economy of tho Ameiican people, cannot fail to raiso the wholo cnun try, at an early period, to a fltatft of unltil and enduring prosperity, not subject to bo again overthrown by the suspension of banks or tho explosion of a bloated credit syatem. It is for the people, and their re presentatives, to decide whether or not the permanent wolfare of the alt good citizens equally desire, 'however widely they may differ as to tho means of its accomplishment) shall be in this way secured; or whother the management or the pecuniary concerns 01 the Uoverment, nnd by consequence, to a condition of tinners which fostered those contractions and ex pansions ol the currency, and thoso reck less buses of credit, from the baleful effects of Which the country has so deeply suffer ed a return that can promise, in the end, no better results than to reproduce the em barrassments the Governraont has experienc ed; and to removo fiom the shoulders of the present, to those of fresh victims, the hitler fruits of that spirit of sneculativn nnlnrnrisn to which our countrymen are bo liable, and upon which the lessons of experience are so unavailing. The choice is an important one nna i sincerely nope that it may be wise ly mado. A rCDOrt from the Rpprntarv nf IVi, nrn. senting a detailed view or the affairs or that ucpanmuni, accompanies this communica tion. The desultory duties- connected with the removal or the Indians, in which the army has been constantly engaged on the north ern and western frontiers, nmt in P.nrwtn have tendered it irripracticsble to carry into iuii cueci me pian recommended by the Secretary fot improving its discipline, In every instance where- the regiments have been concentrated they havo made great progress; and the best results msv lm nmi. cipated from a continuance of this system. During the last season, a part of the troops have been employed in removing Indians from the interjox to. tjie territory assigned uiein in ins west a uuiy which they have performed efGoientlv. and nraisa wnrthv h. manity; and that portion-or them which has been stationed in Florida continued active operalio'ils there throughout tho heats of summer. The policy of the United fltatPR in rnrrarrt to the Indians, of which n succinct account ia given irirny mossage of 1838, and of the . v.vuiniv,j ij vri.iuu i am mi ly sausncnas oeen continued in active op eration throughout the whole neriad of administration. Since the sprinff of 1837. moro than forty thousand Indians have been removod to their homes west of tho Missis- sinni: and I am haunv tn a Hi!, tlmt nn an counts concur in representing the result of ti;is measure as eminent v beneficial in Urn people. 1 he emigration of the Seminnlpn nl nnn has been attended with serious ilflirnliv and occasion bloodshod; hostilities having ueen commenccu Dy me Indians in Florida, under the appichension that they would be compelled, by force; to comply with their treaty stipulations. The exoculion 0r the treaty or Payne's Landing, signed in 1832, but not ratified until 1834. WHS nnclnnnorl at the solicitation of tho Indians, until icir." when they again renewed their agreement to removo peaceably to their new hnmn in tho west. In the face of this snln renewed compact, thoy broke their faith, and commenced hostilities hv thn ere of Major, Dade's command, the murder oi tueir agent.uenerat ihompson.and other acts of cruel troacherv. When th! ming and unexpected intelligence reached me sent oi uovernmeni, every eflbit ap pears to have been made to reinfnr aBn. eral Clinch, who commanded the troons then tn Florida, General Euan's was dc. patched with reinforcements from Charles- ton; troops were called out from Alabama, i ennessee and Ueorgia; and General Scott was sent to lane the command, with ample powers and amnle moans. At thn firm ' 1 ... .... UIBIIHI Geneial Gains, organized a force at New Orleans, and. without waiting for orders, landed in Florida, wficm lm HpU the troops he had brought with him to Gen. ori'ti. Governor Call wassubseniiRnilv-mnintPfi tn conduct a summer campaign, and at the close of it, was replaced by General Jesup, These events and changes look place under the administration of mv nrpclppptsnr Notwithstanding the exertions nf ih rn. rienced officers who had commaiulH ihprp for eighteen months. .-administration of the Government I found the Territory nf VlnriiU i. ...... w. - " vj v iiiuiun I ' atrocities. A slrenunus effort was mt.,u. ately mado to bring these hostilities t0 closcjand tho army under General Jesui,, wa? reinforced until it amounted to ieij thousand men, and furnished with abund ant supplies of every description, In t, campaign a great number of tho t-nemy were captured and destroyed! but the char' acter of the contest was only changed, The Indians, having been defeated in ere ry engagement, dispersed in small bands throughout the country, and beeamc an cu terprising. formidable, and ruthless banditti, 1 General Taylor, who succeeded General Jesup, Used his best exertions lo subdnd them, and was seconded in his efforts by tho officers under his command, but ho ton, failed la protect thu Territory from their depredations. Uy act of signal and cruel treacln ry, they broke tho truce made with them General Macomb, who was Rent from Washington fiir the purpose of carrying in to effect tho expressed wishes of Cohgfeis, and have continued their devastations ever' since. General Armistead, who waB irf Florida when General Taylor left the army by permission, assumed the command, anil after active summer operations, was met by propositions for peace; and, from tho fortti. nale coincidence of the arrival in Florida, at the same period, of a delegation from the Seminoles who are happily settled west or tho Mississippi; and aro how anxious to persuade their countrymen to join them there, hopes were for sometime entertained that the Indians might be induced to leave llie Territory without further diflicultw These hopes have proved fallacious, "and hostilities have been renewed throughout tho wholo of the territory. That this contest has endured so long, is to be attributed to causes beyond the control of tho Govern ment. Experienced Generals havo had the command of the troopsj'oflicers and sol' diers havo alike distinguished themselves for their activity, patience, and cnduiing courage; tho army has bcon constantly fur nished with supplies of every description; and we must look for tho causes which havo so long procrastinated the issue of tho con test, in tho vast extent of tho theatre of hostilities, tho almost insuimountablo ob stacles presented by the nature of tho coun try, the climate, and tho wily character of the savages. Tho sites for tho marine hospitaloon iho rivers andakes, which I was authorized to select and cause to be purchased, havo all been designated, but, tho appropriation not proving, sufficient, conditional anangemenO only have been made for their acquisition. It is for Congress to decide whether tlioio conditional pucfinses shall bo sanctioned, and tho humane intentions nf the law carried in to full effect. The navy.aa will appear from tho accom panying report of the Secretary, has been usefully and honorably employed in tho protection of our commerce and citizens in the Mcditeranian, Pacific, on the coast of Brazil, and in the Gulf r Mexico. A small squadron, consisting of the frigate Constel lation and tho.Sloop-of-war Boston, under Commodore Kerney, is now on its way to the China and Indian seas, for the purpose of attending to our interests in that quarter; and Commander Aulic, in the sloop-of-war Yorktown, has been instructed to visit tho Sandwich and Society islands, the coasts of New Zealand and Japan, togother with other ports and islands frequented by our whale-ships, for the purposo or givin them countenance and protection, should they bo required. Other smaller vessels havo boon and still arc, employed in prosecuting llie survoys or tho coast or tho United Stales, directed by various acls or Congress; and those winch have been eomploted will shortly be laid before you. The Exploring expedition, at the latent dale, wns preparing to leave the Bay of Is lands, New Zealand, in further prosecution of objects which have thus far been success fully accomplished. The discovery of a new continent, which was first seen in lati tude GO dec 2 min. south, lonoituda l!i4 deg. 27 min. east and afterwards in latitude 90 deg. Gl min. south, longitude 153 dec. ,40 min. east, by Lieutenants Wilkes and Hudson, for an exteiit of eighteen hundred miles, but on which they were prevented from landing by vast bodies of ice which encompassed it, is. one of the honorable re sults of the enterprise. Lieutenant Wilkes bear testimony to the zeal and good conduct of his officcrB and men ; and it is but ius- tice to mat oiucer to state mat he appears to have performed the duties assigned to him with an ardor, ability, and perseverance which gave every insurance or an honorah!i issue to the undertaking. The report or the Postmaster GetioraL herewith transmitted, will exhibit the snr- yice of that Department the past year, and its present condition. The transportation has boen maintained during the year to tho full extent authorized by the cxistine laws; some improvements have been effected, which the public interest seemed urgently to demand, but not involvine anv material additional expenditure; the contractors havo generally pefouned their engagement? with fidelity; the postmasters, with few excep tions, have rendered their accounts and paid their quarterly balances with promptitude: and the whole service of tho department hau maintained tho efficiency for which it has for several year been distinguished. The acts of Congress establishing now man routes, and requiring more oxnensive services on others.and the increasing wants of the coriutrv, have, for three vpnru nasi. carried the expenditures something beyond the accruing revenues; the nxcess having been met, until tho paBt year.by tho surpluu