~'
PRESIDENT'S MESSAGE.'
To the Semite and 1
Mute of Representatives of the U. 8,
If any people ever had cause to render
up thanks to the Supreme Being for pater
nal care and protection extended to them
iu all the trials and difficulties to which
they have been from time to time exposed,
we certainly are that People. From the
first settlement of our forefatherq on this
continent—through the dangers attend
ant upon the occupation of a savage wild
erness—through a long period of colonial
dependatice—through the aver of the
Revolution—ill the wisdom which lerl to
the adoption of the present •existin? Re
publican forms of go /el nment—iai the
hazards incident to a war subsequently
waged with one of the most 'powerful
nations of the earth—in the in crease of
our population—hi the spread 'of the arts
and sciences, and in the streng 4 it and dur
ability conferred on political institutions
emenating from the People aral sustained
by their will—the superinteiadance of an
overruling Providence hay, been plainly
visible. As preparatory, therefore, to
entering upon the high duties of legisla
tion, it becomes us huiubl) to acknowlddge
our dependance upon Una as our Guide
and protector, and to irinp4ore a continu
ance of Ris paternal watchfulness over
our beloved country, We have new cause
for the expression . * our gratitude in the
preservation of the health of our fellow
citizens, with sow e partial and local ex
ceptions, during the past season,—for the
abundance with which the earth has yield
ed up its fruits to the labor of the hus
bandinan--for the renewed activity which
has been invparted to commerce—fur the
revival of trade in all its departments—
for the increased rewards attendant on
theexerciue of the mechanic arts—for the
coatinued growth of our population and
the rapidly reviving prosperity of the
whole country. I shall be permitted to
exchange congratulations with you, gen
tlemen of the u.va houses of Congress, on
these auspicious ciacuinstances, and to as
sure you, in advance, of my ready dispo
sition to concur with you in the adoption
of all such ineasures.as shall be calculat
ed to increase the happiness of our cons
stituents and to advaui m the glory of our
common country. •
Since the last adjourniunt of Congress,
the Executive has relaxed no effort to
render indestructible the relations of
amity which so happily oast between the
United States and other countries. The
treaty lately concluded with Great Britian
has tended greatly to increase the good
understanding which a reciprocity of in-
terest is calculated to encou rage, awl it
is urdently to be hoped that nothing may
transpire to interrupt the relations of
amity which it is so obviously the policy
of both nations to cultivate.
A question of much importance still
remains to be adjusted between thins.
The territorial limits of the two countries
in relation to what is commonly known
as the ()vegan territory, still remains in
dispute. The United States would be at
all times indisposes{ to aggrandize them
selves at the expense of any other na
tion, but while they would be restrained
by principles of honor, winch should gov
ern the conduct of nations AS well as that
of individuals, from setting up a demand
for territory which does nut belut. to them,
they would as unwillingly conse;it to a
surrender of their rights. After the
most tight, and as far as practicable, tim
biased examinatiun of the subject, the
United States have always contended that
their rights appertain to the entire region
of country lying on the Pacific, and em•
braced within the forty-second and fifty
fourth 40 usin. of North latitude. This
claim being controverted by Great Brit
ian, those who have pieceeded the pres
ent Executive, actuated, no doubt, by an
earnest desire to adjust the matter upon
terms mutually satisfactory to both coun
tries, have caused to be submitted to the
British Goverment, propositions fur set
tlement and final adjustment, which,
however, have not proved heretofore ac
ceptable to it. Our Minister at London
has, under instructions, again brought the
subject to the consideration of that Gov
erilltient ; and nothing will be done to
romprunsit the rights, or honor of the
United States,
every proper expedient
will be resorted to iii order to bring the
negociationt now in the progress of re
sumption, to a speedy and happy teriniii
[aim ln the mean time it is proper to
remark, that many of our citizens are
either already established in the territory,
or are on their way thither fur the purr
pose of forming permanent settlements,
while others are preparing to follow—and
in view of these facts, I must repeat the
recommendation contained in previous
messages, for the establishment of mili
tary posts, at such places on the line of
travel, as will afford security and protec
tion to our hardy adventurers against hos
tile tribes of Wiens inhabiting those ex•
tensive regions. Our laws should also
follew them, so motliti4 as the circum
stances of the case may serums to require.
Under the influence of our free system of
government, new republics are * destined
to spring up, at no distant day, on the
shores of the Pacific, similar in policy
• and feeling to those existing un this side
of the Rocky Mountains, and giving a
wider rind more extensive spread to the
principles of civil and religious liberty.
1 OM 6rppy to inform you that the
rases which have arisen, from time to time,
of the detention of American vessels by
British cruisers on the coast of Africa,
under pretence of being engaged in the
slave trade, leave been placcil in a fait
lain of adjustment. lu tic case of the
William and Francis, foil satisfaction will
be allowed. In the cases of the Tygris
and Seamew, the British Government ad
mits that satisfaction is due. In the
case of the Jones, the sum accruing from
the sale of that vessel and cargo will be
paid to the owuers—while I cannot but
Hatter tnvself that full indemnification
will be allowed tor all damages sustained
by the detention of the vessel—and in the
case of the Douglas, her Majesty's Gov
ernment has expressed its determination
to make indemnification. Strong hopes
are; therefore entertained, that most, if not
all of these cases will be speedily adjust
ed. No new cases have arisen since the
ratification of the Treaty of Washington;
and, it is confidently anticipated, that the
slave trade, under the operation of the
eighth article of that treaty, will be alto
gether suppressed.
The occasional interruption experienc..
ed by our fellow-citizens engaged in the
fisheries on the neighboring coast of Nova
Scotia, has not failed to claim the atten
tion of the Executive. Representations
upon this subject have been made, but as i
yet no definitive answer to those represen- 1
thations has been received from the Brit
ish Government. .
Two other subjects of comparatively
minor impoi tance, but nevertheless of too
much consequence to be neglected, re
mit] still to be adjusted between the two
countries. By the treaty between the
United States and Great Britain, of July,
1815, it is provided that no higher duties
shall be levied in either country on arti
cles imported from the other, than on the
same articles from any other place. In
1836, rough rice, by act of Parliament,
was admitted from the coast of Africa
into Great Britain on the payment of a
duty of one penny a quarter, while the
same article from all other countries, in
cluding the United States, was subjected
to the payment of a duty of twenty shil
lings a quarter. Our Minister at London
has from time to time brought this subject
to the consideration of the British Gov
ernment, but so far without success. He
is instructed to renew his representations
upon it.
Seine years ago a claim was preferred
against the British Government on the
part of certain American merchants, for
the return of export duties paid by them
on shipments of woollen goods to the
United States, after the duty of similar
articles exported to other countries had
been repealed, and conseqeotly in contra
vention of the commercial convention be
tween the two nations securing to us
equality in such cases. 'rile principle on
which the claim rests has long since been
virtually admitted by Great Britain, but
obstacles to the settlement have from
time to time been interposed, so that a
large portion of the amount claimed has
not yet been refunded. Our Minister is
now engaged in the prosecution of the
claim, and I cannot but persuade myself
that the BiiCsli Government will no long
er delay its adjustment.
I am happy to be able to say that noth
ing has occurred to disturb in any degree
the relations of amity which exist between
the United States a , ql France, Austria,
and Russia, as well as with the other
Powers of Europe,since the adjournment
of Congress. Spain has been agitated
with internal convulsions (or many years,
(ruin the effects of which it is to be hoped
she is destined speedily to recover—when,
under a more liberal system of commer•
cial policy on her part, our trade with her
may again fill its old, and so far as her
continental possessions are concerned, its
almost forsaken channels, thereby adding
so the mutual prosperity of the two
countries.
Tue Germanic Association of Customs
and Commerce, which since its establish
ment in 1855, has been steadily growing
in power and importance, and consists at
this tune of more than twenty German
States, and embraces a population of
`27,000,000 of people united 14 all the
purposes of commercial intercourse with
each;( Cher and with foreign states, offers to
the latter the most valuable exchanges on
principles more liberal than are offaed in
the fiscal system of any other European
power. From its origin, the importance
of the German Union has never been lust
sight of by the United States The indus
try, morality and other valuable qualities
of the German nation, lure always been
well known and appreciated. On this
subject I invite the attention of Congress
to the report of the Secretary of State,
from which it will be seen that while our
cotton is admitted free of duty, and the
duty on rice has been much reduced,
which has already led to a greatly in
creased consumption, a strong disposition
has been recently evinced by that great
body to reduce upon certain conditions,
their present duty upon tobacco. This
being the first intimation of a concession
on this interesting subject ever made by
any European power, 1 cannot but regard
it as well calculated to remove the only
impediment which has su tar existed to
the must liberal commercial intercourse
between us and them. In this view, our
Minister at Berlin, who has heretofore in
dustriously pursued the subject, has been
instructed to enter upon the negotiation
of a commercial treaty, which, while it
will open new advantages to the agricul
tural interests of the United States, and
a more free and expanded field for com
mercial operations, will affect injuriously
no existing interest of the Union. Should
the negociation be crowned with success,
its results will be communicated to both
Houses of Congress.
I communicate herewith certain des
patches received from our Minister at
Mexico, and also a correspondence which
has recently occured between the Envoy
from that Republic and the Secretary of
State. It must be regarded as not a little
extraordinary that the Government of
Mexico, in anticipation of a public dis
cussion, which it has been pleased to in
ter from newspaper publications, as likely
to take place in Congress, relating to the
annexation of 'Texas to the United States,
should so far have anticipated the result
of such discussion as to have announced
its determination to visit any such antici
pated decision by a formal declaration of
war against the United States. II de
signed to prevent Congress from intro
ducing that question, as a tit subject for
its calm deliberation and final judgment,
the Executive has no reason to doubt that
it will entirely fail of its object. The
Representatives of a brave and patriotic
people will suffer no apprehension of fu
ture consequences to embarrass them in the
course of their proposed deliberations.—
Nor will the Executive department of the
Govern ment fail for any such cause, to
discharge its whole duty to the country.
The war which has existed for so long a
time between Mexico and Texas, since
the battle of San Jacinto, consisted for
the most part of predatory incursions,
which, while they have been attended with
much of suferin. to individuals, and
have kept the borders of the two coun
tries in a state of constant alarm, have
failed to approach to any definitive result.
Mexico has flitted out no formidable ar
mament by land or by sea for the subju
gation of Texas. Eight years have now
elapsed since Texas declared her inde
pendence of Moxico, and during that time
she has been recognized as a sovereign
power by several of the principal civiliz
ed states. Mexico, nevertheless, perse
veres in her plans of reconquest, and re
fuses to recognize her independence. The
predatory incursions to which I have allud
ed,have been attended,in one instance,with
the breaking up of the courts of justice
by seizing upon the persons of the judges,
jury and officers of the court, and drag.
ding them along with unarmed, and there
fore non-combatant citizens, into a cruel
and oppresive bondage, thus leaving crime
to go unpunished and immorality to pass
unreproved. A border warfare is ever
more to be deprecated, and over such a war
as has existed for so many years between
these two States, humanity has had great
cause to lament. Nor is such a condition
of timings to be deplored only because of
the individual suffering attending upon it.
The effects are tar more extensive. The
Creator of the universe has given man the
Earth fur his resting place, and its fruits
for his subsistence. Whatever, therefore,
shall make the first or any part of it a
scene of desolation, affects injuriously his
heritage, and may be regarded as a gener
al calamity. Wars may sometimes be
necessary , but all nations have a common
interest in bringing them speedily to a
close. The United States have an imme
diate interest in seeing an end put to the
hostilities between Mexico and Texas.—
They are our neighbors, of the same con
tinent, with whom we are not only desi
rous of cultivating the relations of amity,
but of the most extended commercial in
tercourse, and to practice all the rights
of a neighborhood hospitality. Our own
interests are deeply involved in the mat
ter, since, however neutral may be our
course of policy, we cannot hope to escape
the effects of a spirit of jealousy on the
part of both of the powers. Nor can this
Government be indifferent to the fact that
a warfare, such as is waged between those
two nations, is calculated to weaken both
powers, and finally to render them, and
especially the weaker of the two, the
subjects of interference on the part of
stronger and more powerful nations,
which, intent only on advancing their own
peculiar views,may sooner or later attempt
to bring about a compliance with terms,
as the condition of their interposition,
alike derogotary to the nation granting
them and detrimental to the interests of
the United States. We could not be ex
pected to permit any such interference to
our disadvantage, considering
that Texas
is seperated from the United States by a
mere geographical line, that her territory,
in the opinion of many, formed a portion
of the territory of the United States, that
it is liomoveneous in its population and pur
suits with the adjoining States, makes con
tributions to the commerce of the world
in the some articles with them, and that
most of her inhabitants have been citizens
of the United States, speak the same lan
guage and live undermtilar political in
stitutions with oursellllithis Government
is bound by every consideration of inter
est as well as sympathy, to see that it shall
be left free to act, especially in regard to
her domestic affairs, unawed by force, and
unrestrained by the policy or views of
other countries. In lull view of all these
considerations, the Executive has not hes
itated to express to the government of
Mexico how deeply it deprecated a con
tinuance of war, and how anxiously it de
sired to witness its termination. 1 cannot
but think that it becomes the Ut.ited States,
as the oldest of the American Republics,
to hold a language to Mexico upon this
subject of an unambiguous character. It
is time that this war had ceased. There
must be a limit to all wars ; and if the
parent state, after an eight year's struggle,
has failed to reduce to sub:nission a por
tion of its subjects standing out in revolt
against it, and who have not only pros
claimed themselves to be independent,
but have been recognized as such by other
powers, she ought nut to expect that other
nations will quietly look on, to their obvi
ous injury, upon a protraction of hostili
ties. These United States threw off their
colonial dependence, and established in
dependent Governments; and Great
Britain, after having wasted her energies
in the attempt to subdue them for a less
period than Mexico has attempted to sub
jugate Texas, had the wisdom and justice
to acknowledge their independence, there
by recognizing the obligation which rest
ed on her as one of the fatimily of nations.
An example thus set by one of the proud
est as well as most powerful nations of
the earth, it could in no way disparage
Mexico to imitate. While, therefore,
the Executive would deplore any collision
with Mexico, or any disturbance of the
friendly relations which exist between the
two countries, it cannot permit that Gov
eminent to control its policy, whatever it
may be, toa•aids Texas; but will treat her
as by the recognition of her independence
the United States have declared they
would do as entirely independent of Mex
ico. The high obligation of public duty
may enforce from the constituted authori•
ties of the United States a policy which the
course persevered in by Mexico will have
mainly contributed to produce; and the
Executive, in such a contingency, will
with confiidence throw itself upon the
patriotism of the people to sustain time
government in its course of action.
Measures of an unusual character have
recently been adopted by the Mexican
government calculated in no small degree
to affect the trade of other nations with
Mexico, and to operate injuriously to the
United States. All foreigners by a decree
of the 23d day of September, and after
six months from the day of its promulga•
tion, are forbidden to carry on time business
of selling by retail any goods within the
confines of Mexico. Against this decree
our Minister has not failed to remon
strate.
The trade heretofore carried on by our
citizens with Santa Fee, in which much
capital was already invested, and which
was becoming of daily increasing import
ance, has suddenly been arrested by a de
cree of virtual prohibition on the part of
the Mexican government. Whatever may
be the right of Mexico to prohibit any
particular course of trade, to the citizens
or subjects of foreign powers, this late pro
cedure, to say the least of it, wears a harsh
and unfriendly aspect.
The instalments of the claims recently
settled by the convention nigh Mcxico,
have been punctually paid as they have
fallen due, and our Minister is ergaged
in urging the establishment of a new com
mission in pursuance of the Convention
for the settlement of unadjusted claims.
With other American states our rela
tions of amity and good will have remain
ed uninterrupted. Our minister near the
Republic of New Walla(la, has succeeded
in effecting an adjustment of the claim up
on that government for the schooner " By
Chance," Nhich had been pending fur
many years. The claim fur the brig .Mor
ris,' which had its origin during the exist
ance of the Republic of Columbia, and in
demnifidation for which, since the disso
lution of that Republic, has devolved on
its several members, will be urged with
renewed zeul. •
I have much pleasure in saying that the
government of Brazil has adjusted the
claim upon that government in the case of
the schooner John S. Bryan, and that san
guine hopes ale entertained that the same
spirit of Justice will influence its coun
cils in arriving at an early decision upon
the remaining claims; thereby removing
all cause of dissension between two pow
ers, whose interests are to sonic extent in
terwoven with each other.
Our Minister at Chili, has succeeded in
inducing recognition by that government
ol the adjustment effected by his predeces•
sor of the first claims in the case of the Ma
cedonian. The first instalment has been
received by ll►e claimants in the United
States.
Notice of the exchange of ratifications
of the treaty with Peru, which will take
place at Lima, has not yet reached this
country, but it is shortly expected to be
received, when the claims upon that Re
public will doubtless be liquidated and
paid.
In consequence of a misunderstanding
between this government and that of
Buenos Ayres, occurring several years
ago, this government has remained un
represented at that court, while a minister
from it has been constantly resident here,
The causes of irritation have in a great
measure passed away, and it. is in con
templation, in view of important interests
which have grown up in that country, at
some early period during the present ses
sion of Congress, with ►he concurrence of
the Senate, to restore diplomatic relations
between the two countries.
Under the provisions of an act of Con
gress of the last session, a Minister was
despatched from the United States to Chi
na, in August of the pi esent year,who, from
the latest accounts we have from hint, was
at Suez, in Egypt, on the 26th of Septeni
last, on his route to China.
in regard to the Indian tribes residing
within our jurisdictional limits, the great
est vigilance of the government has been
exerted to preserve them at peace among
themselves, and to inspire them with feel.
ings of confidence in the justice of this
government, and to cultivate friendship
with the border inhabitants. This has
happily succeeded to a great extent; but
it is a subject of regret that they suffer
themselves in some instances to be impos
ed upon by artful and designing men—and
this notwithstanding all the efforts of .he
government to prevent it.
The receipts into the Treasury for the
calendar year 1643, exclusive of loans,
were little more than eighteen millions of
dollars; and the expenditures, exclusive
of payments on the public debt, will have
been about twenty•three millions of dol.
lan'. By the act of 1842, a new arrange
! mot of the fiscal year was made, so that
it should commence on the Ist day of July
in each year. The accounts and esti
mates for the current fiscal year, will
show that the loans and Treasury notes
made and issued before the close of the
last Congress, to meet the anticipated de
ficiency, have not Seen entirely adequate.
Although on the Ist of October last, there
was a balance in the Treasury inconse
quence of the provision thus made of
93,914,082 77, yet the appropriations
already made by Congres will absorb that
balance, and leave a probable deficiency
of two millions of dollars at the close of
the present fiscal year. 'filet e are out
standing Treusury notes to about the
amount of four million six hundred
thousand dollars; and should they
be returned upon the Treasury during the
present fiscal year, they will require pro
vision fur their redemption. Ido not,
however, regard this as probable, since
they have obviously entered into the cur
rency of the country, and will continue
to form part of it, if the system now odop.
ted be continued. The loan of 1841,
amounting to Z 5,672,976 88, falls due on
the Ist of January, 1845, and must be pro
vided for or postponed by a new loan.
And unless the resources of revenue
should be materially increased by you,
there will be a probable deficiency for the
service of the fiscal year ending June 30th
1845. of upwards of about four millions
of dollars.
The delusion incident to an enormous
ly excessive paper circulation, which gave
a fictitious value to every thing, and stun.
elated adventure and speculation to an
extravagant extent has been happily suc
ceeded by the substitution of the precious
metals and paper promptly redeemable in
specie, and thus false values have . disap
peared, and a sounder condition of things
has been iutroduced. The transition, al
though intiintaely connected with the
prosperity of the country, has nevertheless
been attended with much embarrassment
to the government, in its financial con
cerns. So long as foreign importers could
receive payment for their cargoes in u cur
rency of greatly less value than that in
Europe, but fully available here in the
purchase of our agricultual productions,
their profits being immeasurasly augmen
ted by the operation, the shipments were
large and the revenues of the government
became superabundant. But the change
in the character of the circulation from a
I lnominal, and apparently real value, in the
first stages of its existent ce, to an obviously
depreciated value in its second, so that
it no longer answered the purposes of ex•
change or barter, and its ultimate subst
tution by a sound metalic and paper cir
culation combined, has been attended by
diminished importations, and a consequent
falling off of the revenue. This has in.
duced Congress, from 1837, to resort to
the expedient of issuing Treasury notes,
and finally of funding them, in order to
supply deficiencies. I cannot however,
withold the remark that it is in nu way
compatible with the dignity of the gov
ernment, that a public debt should be cre
ated in tittle of peace to meet the current
expenses of the government, and that
temporary expedients should be resorted
to an hour longer that it it possible to a
void them. l'he Executive can do nu
more than employ the means which Con
gress places in his hands for the support
of government ; and happily fur the good .
of the country and for the preservation of
its liberties, it possesses nu power to
levy exactions on the people, or to force
from them contributions to the public re
venue in any form. It can only reccum
mend such measures as may, in its oprn.
ion, be called for by the wants of the pub
lic service, to Congress, with whom alone
rests the power to "lay and collect taxes,
duties, imposts, and excises." 'Phis duty
has upon several occasionsheretnfore been
performed. The present condition of
things gives a flattering prospect that trade
and commerce are rapidly reviving, and
fortunately for the country, the sources of
revenue have only to be opened, in order
Ito prove abundant.
While we can anticipate no consider.
ble increase iii the proceeds of the sales of
the public lands for reasons perfectly ob
vious to all, for several years to come, yet
the public lands cannot otherwise than be
regarded as the foundation of the public
credit. With so large a body of the most
fertile lands in the world under the con
trol and at the disposal of the govern
ment, no one Call reasonably doubt theen
tire ability of the government to meet its
engagements under every emergency. In
seasons of trial and difficulty similar to
those through which we are passing, the
capitalist makes his investments in the
government stocks with the most assured
confidence of ultimate reimbursement;
and whatever may be said in a period of
great financial prosperity, such as existed
for some years after 1833,1 should regard
it us suicidal in a season of financial em
barrassment, eithe.t• to alienate the lands
themselves, or the proceeds arising front
their sales. The first and paramount
duty of those to whom may be entrus•
tett the administration of piiblic affairs,
ja to guard the public credit. In re
establishing the credit • of this central
government, the readiest and most ob
vious mode is taken to restore the
credit of the States. 'Fire extremities
can only be made sound by producing
a healthy action of the central government,
and the history of the present day fully
establishes the fact, that an increase in the
value of the stocks of this government
will, in a majority of instances, be attend
ed by an increase of the value of the
stocks of the States. it should therefore
be a matter of general congratulation that
amidst till the embarrassments arising
from surrounding eircuinstancea, the crtAl
it of the government should have been so
fully restored that it has been enabled to
effect a loan of seven millions of dollars.
to redeem that amount of Treasury notes,
on terms more favorable than any that
have been offered for a number of years.
And the six per cent. stock which was
created in 184 g, has advanced in the
hands of the holders to nearly twenty per
cent. above its par value. The confidence
of the people in the integrity of their gov
ernment has thus been signally manifest
ed. These opinions relat:ve to the public
lands do not in any manner conflict with
the most liberal policy towards those of
our fellow-citizens who press forward
into the wilderness and are the pioneers
of its reclamation. In securing to all
such their rights of pre-emption, the guy
eminent performs but an act of retri
butive justice for sufferings encountered
and hardships endured, and finds ample
remuneration in the comforts which its
policy ensures and the happiness which
it imparts.
Should a revision of the tariff; with a
view to revenue, become necessary in the
estimation of Congress, I doubt not that
you will approach the subject with a just
and enlightened regard to the interests of
the whole Union. The principles and
views which I have heretofore had occa
sion to submit, remain unchanged. It can,
however, never be too often repeated, that
the prominent interest of every importtnt
pursuit of life, requires for success, per
manency and stability in legislation.—
These can only be obtained by adopting as
the basis of action, moderation in all
things, which is as indispensably necessa
ry to secure the harmonious actiun of the
political as of the animal system. In our
political organization no one section of
the country should desire to have its sup
posed interests advanced at the sacrifice
of all others ; but Union being the great
interest, equally precious to all, should be
fostered and sustained by mutual conces- ,
sions and the cultivation of that spirit of
compromise from which the constitutien
itself proceeded.
You will be informed by the report from
the Treasury department, of the measures
taken under the act of the last session,
authorizing the re-issue of Treasury notes
in lieu of those then' outstanding. The
system adopted in pursuance of existing
laws seems well calculated to save the
country a large amount of interest, while
it affords conveniences and obviates dan
gers and expense in the transmission of
funds to disbursing agents. I refer you
also to that report for the means proposed
by the Secretary to increase the revenue,
and particularly to that portion which re
lates to the subject of the warehousing
system, which I earnestly urged upon
Congress at its last session, and as to this
importance of which my opinion has un
dergone no change. lu view of the dis.
ordered condition of the currency ut the
time, and the high rate of exchange be
tween different parts of the country, I
felt it to be incumbent on me to present
to the consideration of your predecessors y
a proposition conflicting in no degree
with the Constitution, or with the rights
of the States, and having the sanction, riot
in detail, but in principle, of some of the
eminent men who had preceded me in
the Executive office. That proposition
contemplated the issuing of Treasury
notes of a denomination not less than five
nor more than one hundred dollars, to be
employed in the payment of the oblige
tuns of the government in lieu of gold
and silver, at the option of the public cred
itor, and to an amount not exceeding
$15,000,000.
It was proposed to make them receiva
ble everywhere, and to establish at vas iuua
points depositories of gold and sit% er to
be held in trust for the redempt:on of such
notes, so as to ensure their convertability
into specie. No doubt was entertained
that such notes would have maintained a
par value with gold and silver, thus fur.
[fishing a paper currency, of equal value
over the Croon, and fulfilling the dirtied/
of a parental government. Whether the
depositories should be permitted to sell ur
purchase bills under very limited restric
tions, together with all the other details,
was submitted to the wisdom of Congress,
and was regarded as of secondary im
portance. I thought then, and think 'IOW,
that such an arrangement would have
been attended wish the happiest results.
The whole matter of the currency would.
have been placed m here by the Constitir- .
(inn it was designed to be placed—under
the immediate supervision and control of
Congress. The actions of goverment
would have been independent of all cor
porations, and the same eye which rests
unceasingly on the specie currency and
guards it against adulteration„ would also
have rested upon the paper currency, to
control and regulate its issues and protect
it against depreciation. The same rea.
son* which would forbid Congress from
parting with the power over the coinage,/
would seem to operate with nearly equal
force with regard to any substitution ler
the precious metals in the form of a cit.*
culating medium.
Paper, when substituted for specie,
constitutes a standard of value by which
the operations of society are regulated.
and whatever causes its depreciation af
fects society to an extent nearly, if Hot
quite, equal to the adulteration of the coin.
Nor can I withhold the remark, that its ad
vantages, contrasted with a Bank of the
United States, apart from the fact that a
bank was esteemed as obnoxious to the
public sentiment, as well as on the score
of expediency as of the constitutionality
appeared to be striking and obvious.
The relief which a bank would afford
, by an issue of 815,000,030 of its notes,
judging Irvin the eefvrience ut the !ate