remains undisposed of, payable at a more
distant day.
Should it be neccessary, in any view that
Congress may take 'of the subject, to rerisa
the existing tariff of duties, I beg leave to
say, that, in the performance of that most
delicate operation, moderate counsels would
seem to be the wisest. The Government,
under which it is our happiness to live, owes
its existence to the spirit of compromise
which prevailed among its framers jarring
and discordant opinions could only have been
reconciled by that noble spirit of patriotism,
which prompted conciliation, and resulted
in harmony. In the same spirit the com
promise bill, as it is commonly called, was
adopted at the session of 1833. While the
people of no portion of the Union will ever
hesitate to pay all necessary taxes for the
support of Government, yet an innate repug
nance exists, to the impositions of burthens
not really necessary for that object- In im
posing duties, however, for the purposes of
revenue; a right to discriminate as to ihe arti
cles on which the duty shall be laid, as well
as the amount, necessarily and most proper
ly exists. Otherwise the Government would
be placed in the condition of having to levy
the same duties upon all articles, the pro
ductive, as well as the unproductive.
The slightest duty upon some, might
- have the effect of causing their importa
tion (o cease, whereas others entering ex
tensively into the consumption of the
country, might bear the heaviest, without
any sensible diminution in the amount
imported. So also the Government may
be justified in so discriminating, by refer
ence to other considerations of domestic
policy connected 'with our manufactures.
So loner as (he duties shall be laid with
distinct reference to the wants of the
Treasury, no well founded objection can
exist against them. It might be esteemed
desirable that no such augmentation of the
taxes should take place as would have
the effect of annulling the land proceeds
distribution act of the last session, which
act is declared to be inoperative the mo
ment the duties are increased beyond 20
per cent the maximum rale established
by (he compromise act. Some of the
provisions of the compromise act, which
will go into effecfon the 30lh day of June
next, may, however, be found exceedingly
inconvenient in practice, under any regu
lations that Congress may adopt. 1 refer
more particularly to that relating to the
home valuation. A difference in value of
the same articles, to some extent, will
. necessarily exist at different ports : but
(hat is altogether insignificant, when
compared with the conflicts in valuation
which are likely to arise from the differen
ces of opinion among the numerous ap
praisers of merchandise. In many instan
ces, the estimates of value must be con
jectural, and thus as many different rales
of value may he established as (here are
appraisers. These differences in valua
tion ma' also be increased by the inclina
tion which, without the slightest imputa
tion on their honesty, may arjse on the
part of the appraisers in favor of their
respective ports of entry. I recommend
this whole subject to the consideration of
Congress, with a single additional remark.
Certainty and permanency in any system
of governmental policy are, in all respects,
eminently desirable ; but more particular
ly is this true m all that aflects trade and
commerce, the operations of which de
pend much more on the certainly of their
returns, and calculations which embrace
distant periods of time, than on high boun
ties, or duties which are liable to constant
fluctuations.
At your late session, 1 invited your at
tention to the condition of the currency
and exchanges, and urged the necessity of
. adopting such measures as were consist
ent with the constitutional competency of
the Government, in order lo correct the
unsoundness of the one, and, as far as prac
ticable, the inequalities of the other. No
country can be in the enjoyment of its full
measure of prosperity, without the pres
ence, a medium of exchange, approxi
mating lo the uniformity of value. What
is necessary as belween the different na
lions of the earth, is also important as be
tween the inhabitants of different parts of
same counlry. With the first, the pre
cious metals constitute the chief medium
of circulation ; and such also would be
the case as to the last, but for inventions
comparatively modern, which have fur
nished, In place of gold and silver, a pa
per circulation. I do not propose to en
ter Into a comparative analysis of (he
' merits of the Iwo systems. Such belongs
more properly to the period of the intro
duction of the paper system. The spec
ulative philosopher might find inducements
to prosecute the inquiry, but his research
es could only lead him to conclude that
the paper sj'slem had probably belter nev
have been introduced, and that society
might have been much happier without if.
'flie practical statesman Jias a very dif
,erenl task lo perform, fie has to look
..alilhingsas they are to take them as he
jf finds thetn to supply deficiencies, and lo
, ;pnme excesses as far as in him lies. The
if ask of furnishing a corrective for dc
, i;ange,mcnts of the paper medium with us,
iis alinost inexpressibly great. The power
exerted by the States (o Charter banking
corporations, and which having been car
ricd to a great excess, has filled the coun
try with (in most of the States) an irre
deemable paper medium, is an evil which,
in some way or other, requires a correc
live. The rates at which bills of exchange
are negocialed between different parts of
the country, furnish an index of the value
of the local substitute for gold and silver,
which is, in many parts, so far deprecia-
I ted as not to be received, except at a large
discount, in payment of debts, or in the
purchase of produce. It could earnestly
be desired that every bank, not possessing
the means oS resumption, should follow
the example of the United Stales Bank of
Pennsylvania, and go into liquidation,
rather than, by refusing to do so, to con
tinue embarrassments in the way of sol
vent institutions, thereby augmenting the
difficulties incident lo the present condi
tion of things. Whether Ihis Government
with due regard to the rights of the Slates
has any power lo constrain the banks
either to resume specie payments or to
force Ihem into liquidation, is an inquiry
which will not fail to claim your consid
eration. In view of the great advantage's
which are allowed the corporators not
among the least of which is the authority
contained in most of their charters to
make loans lo three times the amount of
their capital, thereby often deriving three
times as much interest on the same amount
of money as any individual is by law per
mitted lo receive no sufficient apology
can be urged for a long continued sus
pension of specie payments. Such sus
pension is productive of the greatest det
riment lo the public, by expelling from
circulation the precious metals, and se
riously hazarding the success of any effort
thai this Government can make to increase
commercial facilities, and lo advance the
public interests.
This is the more lo be regretted, and
the indispensible necessity for a sotind
currency becomes (he more manifest,
when we reflect on the vast amount of the
internal commerce of the country. Of
this we have no statistics nor just data for
forming adequate opinions. But there
can be no doubt but that the amount of
transportation coastwise by sea, and the
transportation -inland by railroads and ca
nals, and by steamboats and other modes
of conveyance, over the surface of our
vast rivers and immense lakes, and the
value of properly carried and interchanged
by these means, form a general aggregate
to which Ihe foreign commerce of the
counlry, large as it is, makes bul a dis
tant approach.
In the absence of any controlling pow
er over this subject, which by forcing a
general resumption of specie payments
would at once have the effect of restoring
a sound medium of exchange, and would
leave lo Ihe counlry but little to desire,
what measure of relief, falling within the
limits of our constitutional competency,
does it become this Government to adopt?
It was my painful duty at your last ses
sion, under the weight of most solemn ob
ligations, lo differ with Congress on the
measures which it proposed for my appro
val, and which it doubtless regarded as
corrective of existing evils. Subsequent
reflection, and events since occurring,
have only served lo confirm me in the
opinions then entertained and frankly ex
pressed. I must be permitted to add, thai no
scheme of governmental policy, unaided
by individual exertions, can be available
for ameliorating the present condition of
things. Commercial modes of exchange
and a good currency "are but necessary
means of commerce and intercourse, not
the direct productive sources of wealth.
Wealth can only be accumulated by the
earnings of industry and the savings of
frugality; and nothing can be more ill
judged than to look to facilities in bor
rowing, or lo a redundant circulation, for
the power of discharging pecuniary obli
gations. The counlry is full of resources
and the people full of energy ; and the
great and permanent remedy for present
embarrassments must be sought in indus
try, economy, the observance of good
faith, and the favorable influence of lime.
In pursuance of a pledge given to you
in my last message to Congress, (which
pledge I urge as an apology for adventur
ing to present you the details of anv plan)
the Secretary of (he Treasury will be
ready to submit to you, should you require
it, a plan of finance, which while it throws
around the public treasure reasonable
guards for its protection, and rests on
powers acknowledged in practice to exist
from the origin of the Government, will,
at the same time, furnish lo the country a
sound paper medium, and afiord all reas
onable facilities for regulating the exchan
ges. When submilted, you will perceive
in it a plan amendatory of the existing
laws in relation lo the Treasury Depart
ment subordinate in all respects (o the
will of Congress directly, and the will of
the people indirectly self sustaining,
,should it be found in practice 9 realize
ils promises in theory, and repealable at
the pleasure of Congress. It proposes,
by effectual restraints, and by invoking the
true spirit of our institutions, to separate
Ihe purse from the sword ; or, more pro
perly to speak, denies any other control
to the President over the agents who may
be selected to carry it into execution, but
what may be indispensably necessary to
secure the fidelity of such agents ; and, by
wise regulations, keeps plainly apart from
each other private and public funds. It
contemplates the establishment of a .Board
of control at the seat of Government,
with agencies at prominent commercial
pointsror wherever else Congress shall
direct, for the safe keeping and disburse-
mpnf nf Ihp null 10 mnnev? nnrl n cntictliur0
lion, at the option of the public creditor
of Treasury notes in lieu of gold and-sil-ver
It proposes to limit Ihe issues to an
amount not to exceed $15,000,000, with
out the express sanction of the legislative
power. It also authorizes the leceipl of
individual deposites of gold and'silver lo
a limited amount, and the granting certifi
cates of deposite, divided into such sums
as may be called for by the depositors.
It proceeds a step further, and authorizes
the purchase and sale of domestic bills
and drafts, resting on a real and substan
tial basisj payable at sight, or haying but
a short time lo run, anddrawn on place.s
not less than one hundred miles apart;
which authority, except in so far as may
be necessary for Government purposes ex
clusively, is only to be exerted upon the
express condition that its exercise shall
not be prohibited by the Slate in which
the agency is situated.
In order to cover the expenses incident
to the plan, it will be authorized to re
ceive moderate premiums for certificate
issued on deposits, and on bills bought and
sold, and thus, as far as its dealings ex
lend, to furnish facilities to commercial
intercourse at the lowest possible rales.
and to subduct from theearnings of indus
try, the least possible sum. It uses the
State Banks at a distance, from the agen
cies, as auxilanes, without imparting any
power lo trade m ils name. It is subiect-
ed to such guards and restraints as have
appeared lo be necessary.- It is the crea
ture of law, and exists only at the pleasure
of the legislature. It is made to rest on
an actual specie basis, in order to redeem
me notes at tne places 01 issue produces
no dangerous redundancy of circulation
affords no temptation to speculation is
attended by no inflation of prices: is
equable in its operation makes the Itrea
sury Notes, which it may use along with
the certificates of deposit, and the notef4
of specie -paying banks convertible at"
the place where collected, receivable in
payment of Government dues and with-"
out violating any principle of the Consti
tution, affords the Government ind the
people such facilities as are called for by
the wants of both. Such, il has appear
ed to me, are ifs'recommendations, and in
view of Ihem it will be submilted, when
ever you may require it, lo your consid
eration. I am not able to perceive that any fair
and candid objection can be urged against
the plan, the principal outlines of which I
have thus presented. I cannot doubt but
that the Tiotcs. which it proposes to furnish
at the voluntary option of the public cred
itor, issued in lieu of the revenue and ils
certificates of deposit, will be maintained 1
at an equality with gold and silver every
where. They are redeemed- with gold
and silver on demand, at the place of issue.
Ihey are receivable every where in pay
ment of Government dues. The Treasu
ry notes are limited to an amount of one
fourth less than the estimated annual re
ccipts of the Treasury ; and in addition
Ihey rest upon the faith of the government
for their redemption. If all these assur
ances are not sufficient to make them
available, then the idea, as it seems lo me,
of furnishing a sound paper medium of ex
changes may be entirely abandoned.
If a fear be indulged that the Govern
ment may be tempted lo run into excess
in ils issues, at any future day, it seems lo
me (hat no such apprehension can reason
ably be en(ertained, until all confidence
in the representatives of the Stales and of
the people, as well as of the people them
selves, shall be lost. The weightiest con
siderations of policy require that the re
straints now proposed to be thrown around
the measure should not, for light causes be
removed. To argue against any proposed
plan, its liability lo possible abuse, is to
reject every expedient, since every thing
dependent on human action is liable to
abuse. Fifteen millions of Treasury notes
may be issued as the maximum, but a dis
cretionary power is to be given to (he
board of Control, under that sum, and ev
ery consideration will unite in leading
them to feel their way with caution. For
the eight first years of the existence of the
late bank of the United States, its circula
tion barely exceeded $4,000,000: and for
five of ils most prosperous years, it was
about equal to 16,000,000; furthermore,
the authority given to receive private de
posits to a limited amount, and to issue
certificates in such sums as mav be called
for by the depositors, may so far fill up the
channels of circulation as greally lo di
minish the necessity of any considerabl
issue of treasury notes A restraint upj
on the amount of private deposits lias
seemed to be indispensably necessary,
from an apprehension thought to be well
founded, that in any emergency of trade,
confidence might be,sofar shaken in the
banks as lo induce a withdrawal from
them of private deposits, with a view to
ensure their unquestionable safety when
deposited with the Government, which
might prove eminently disastrous to the
Slafe banks.
ls il objected that it is proposed lo au
thorize the agencies to deal in bills of Ex
change? Is it answered, that such deal
ings are to be carried on at the lowest pos
sible premium are made lo rest on an
unquestionably sound basis are designed
to reimburse merely the expenses which
would otherwise devolve upon the Trea
sury, and are in strict subordination to the
decision of the Supreme Court, in the case
of the bank of Augusta against Earle,and
other leported cases ; and thereby avoids
all conflict with State jurisdiction, which 1
hold to he indispensably requisite. It
leaves the banking privilege of ihe States
without interference looks to the Trea
sury and the Union, and, while furnish
ing every facility to the first, is careful of
the interests of the last. But above all, it
is created by law, is amendable by law,
and is repealable by law : and wedded as
I am to no theory, but looking solely to
the advancement of the public good, 1
shall be amongst the very first to urge its
repeal, if it be found not to subserve the
purposes and objects for which it may be
created. Nor will the plan be submilted
in any overweening confidence in the suf
ficiency of my own judgment, but with
much greater reliance on the wisdom and
patriotism of Congress. I cannot abandon
this subject without urging upon you, in
the most emphatic manner whatever may
be your action on llie suggestions which I
have felt it my duty to submit, to relieve
the Chief Executive Magistrate by any
and all constitutional means, from a con
trolling power over the public Treasury.
If, in the plan proposed, should you deem
it worthy of your consideration, that sep
aration is not as complete as you may de
sire, you will doublless, amend it in that
particular. For myself, I disclaim all de
sire to have any control over the public
moneys, other than what is indispensably
necessary, lo execute the laws which you
may pass.
Nor can I fail to advert, in this connec
tion, to the debts which many of the States
of the Union have contracted abroad, and
under which they continue to labor. That
indebtedness amounts to a sum not less
than $200,000,000, and which has been
retributed to them, for the most part, jn
works ofHnternal improvement, which are
destined improve of vast importance in
ultimately advancing their prosperity and
wealth. For (he debts thus contracted,
the States are alone responsible. I can
do no more than express the belief that
each State will feel itself bound by every
consideration of honor, as well of interest,
to meet its engagements with punctuality.
The failure, however, of any one Slafe to
do so, should in no degree affect the cre-.
dit of the rest ; and the foreign capitalists
will have no just cause to experience
alarm as to all oilier State stocks, because
any one or more of the Stales may Be
glect lo provide with punctuality the
means of redeeming their engagements.
Even such States, should there be any,
considering the great rapidity with which,
their resources arc developing themselves,
will not fail to have the means, at no very
distant day, to redeem their obligations to
the uttermost farthing ; nor will I doubt
hut thai in view of thai honorable conduct
which has evermore governed the States,
and the People of this Union, they will
each and all resort lo every legitimate ex
pedient, before they will forego a faithful
compliance with their obligations.
From the report of the Secretary of
War, and other reports accompanying it,
you will be informed of the progress which
has been made in the fortifications design
ed for the protection of our principal ci
ties, roadsteads, and inland frontier, dur
ing the present year ; together with their
true slate and condition. They will be
prosecuted lo completion with all the ex
pedition which the means placed by Con
gress at the disposal of the Executive will
allow.
1 recommend particularly lo your con
sideration, that portion of the Secretary's
report which proposes the establishment
of a chain of military posts, from Council
Bluffs to some point on the Pacific Ocean,
within our limits. The benefit thereby
'destined lo accrue to our citizens engaged
in the fur trade over that wilderness re
gion, added lo the importance of cultiva
ting friendly relations with savage tribes
inhabiting it. and at the same lime of giv
ing protection to our frontier settlement?,
and of establishing the means of safe in
tercourse between the American settle
ments at (hp moiith of the Columbiu rivqr,
anjfoose onWisfde of the Rocky MmuT
(axtswould seem (6 suggest Ihe'import
ar&e of carrying into effect the reenm.
Emendation upon this head with as little
delay as may be practicable.
The report of the Secretary of the Na
vy, will place you in possession of the
present condition of that important arm
of Ihe national defence. Every effort will
be made to add to ils efficiency, and 1 can
not too strongly urge upon you, liberal ap
propriations to that branch of the public
service. Inducements of the weightiest
character exist for the adoption of this
course of policy. Our extended and oth
erwise exposed maritime frontier, calls for
protection, to the furnishing of which an.
efficient naval force is indispensable. We
look to no foreign conquests, nor do we
propose to enter into competition with
any other nation for supremacy on the
Ocean, but it is due not only to the hon
or, but to the security of the People of
the United Stales, that no nation should
be permitted to invade our waters at plea
sure, and subject our towns and villagos
to conflagration or pillage. Economy in
all branches of the public servfee, is due
from all the public agents to the people ;
but parsimony alone would suggest the
withholding of the necessary means, for
the protection of our domestic firesides
from invasion, and our national honor from
disgrace. I would most earnestly recom
mend to Congress, to abstain from all ap
propriations, for objects not absolutely ne
cessary ; but I take upon myself, without
a moment of hesitancy, all the responsi
bility of recommending the increase and
prompt equipment of that gallant Navyy
which has lighted up every tea with ils
victories, and spread an imperishable glo
ry over the counlry.
The report of the Postmaster General
will claim your particular attention, not
only because of the valuable suggestions
which it contains, but because of the great
importance which, at all times, attaches;
to that interesting branch of the public
service. The increasing expense of trans
porting the mail along the principal routes
necessarily claims the public attention,
and has awakened a corresponding solici
tude on the part of the government. The
transmission of the mails must keep pace
with those facilities of intercommunica
tion which are every day becoming great
er through the building of rail roads and
the application of steam power ; but it
cannot be disguised that in order to do so,
the Post Office Department is subjected
to heavy exactions. The lines of com
munication between distant parts of the
Union, are to a great extent, occupied by
rail roads, which, in the nature of things,
possess a complete monopoly and the de
partment is thereby liable to heavy and
unreasonable charges. This evil is desti
ned to great increase in future; and some
timely measure may become necessary lo
guard against it.
I feel it my duty lo bring under your
consideration a practice which has grown
up in the administration of the Govern
ment, and which, I am convinced ought
to be corrected. 1 allude to the exercise
of the power, which usage rather than rea
son, has vested in the Presidents, of remo
ving incumbents from office in order lo
substitute others more in "favor with the
dominant fKiHyjMy own conduct in m
respect, h npDcntt 0 V e r n e d by a conscien
cious piirposejrj exercise the removing
power only in cases i unfaithfulness or
inability, or in those irV which ils exercise
appeared necessary, irf, order lo discoun
tenance and suppress that spirit of active
partisanship on the part of holders of of
fice, which not-only wilTtdrajvs them from
the study and impartial discharge of their
official duties, but exerts an undue and in
jurious influence over elections, and de
grades the characterof the Government
itself, inasmuch as iu exhibits the Chief
Magistrate as being.parly, through his
agents, in the secret plots or open work
ings of political parlies.
In respect to the exercise of this power,
nothing should be left to discretion which
may safely be regulated by law ; and it is
of high importance to restrain as far as
possible, the stimulus of personal interests
in public elections. Considering the great
increase which has been made in public
offices in the last quarter of a century
and the probability of further increase, we
incur the hazard of witnessing vUdent po
litical contests, directed loo often by the
single object of retaining office, by those
who are in, and obtaining it by those who
are out. Under the influence of thess
convictions I shall cordially concur many
constitutional measures for regulnting,and
by regulating, restraining the power of re
moval. 1 suggest for your consideration the pro-,
priety of making, without further delay,
some specific application of the funds de
rived ur;der the will of Mr. Smithson, of
England, for Iho diffusion of knowledge,
and which have heretofore been vested in
public stocks, until such time as Congress,
should think proper to give them a speci
fic direction. Nor will you, I feel confi
dent, permit any abatement of the princ'h