among the comm ./sly' more diligent inquiry into theichei'- ';'''• 'acrier a ef, those operatiOns of,trifffiC, towards web .il deilired tq.,estead such peculiar T 5 y rave , ; .‘.; , :::The Various AElt usections which bear the or domeexchanges differ essential- I is their. nature, operation and utility..., Oroailess of them consists of bills of ex. drawn,:for the purpose of transfer, ripit actual- capital from oue part of the IttoentrY'to anothe r, or to anticipate the ' • ' " itnieeeds of property actuelly transmitied. gills:ad:4a description itra,higlAy uset . in lifts movements of trade, owl well deserve.al I .'llitienceuragemeot which can rightfully be - •!r ~ :*ven to them, knottier class is made up 'ef'.exchange, not 4rawn to transfer ` cap 'it al itor oo the credit of property 7.oabfal. , transmitted, ibut to create fictitious capital. rnikto' g at once crthe character of notes . ' itfilsediated in bank, and of bank notes in eir '' "orletien, and swelling the mass of paper credits 'to a vast extent in the most iiihjec,- manner. These hills have formed, ' 4 l4f libua the last .lew years, a large proportion of-) 'hitt are termed the domestic exchanges of country, serving as the means of usnri. sue profit, and constituting the most unsafe find precarious paper in circulation. • This npacies of traffic, instead of being- upheld, ought to be discounteuaneed by the Goy. .ernment and the people. •-.=yin transferring its funds from place to the Government is on the same foot. log With the private citizen, and crie.y resort to the same levet means. it may do so through the medium of bills drawn by itself, er purchased' from others; and, in these op. .13rations;tt may, in a manner undoubtedly . ',constitutional and legitimate, facilitate and assist exchanges• of individuals founded on . -SetAAransactiens .of trade. The extent to which this may be done, and the best means of effecting it, am entitledlo nu fullest con. . eideration. : Tide has been estowed by the liticretery of the Treasury, and his views Ord, be submitted to , you in his report. But, it was not designed. by the constitu (ln that the Governmeut should assume the l'inagetnent of dmierestic or foreign ex ' Change - It is indeed authorised to regulate, ••• by law, the commerce , between the States, • and to Orrevide a general standard of value = medium of exchange in gold and silver ; bent is skit : proviaee to aid individuals in, thelransfer dtheir funds, otherwise than 6trongh_lhe faCilities affirded by the Post • afrata.Departmeot. As justly might it be nailed - on :to provide for the transportation of • their merchandise, These are operations oftrade. They ought to be conducted by 111 - 1 .080 whn tiro in interested in them, in the same manner that the incidental difficultes , hf other pursuits are encountered by other .Closites'of,Pitiseoe, Such aid hes not been countries.— deemed fleeeagekri other ghout Europe, the doniestic as well foreign exchanges' are tarried on hy • „private houses, oflon,•if not generally, with• ' ' ;itiet Abe assistance of banks. Yet they ex '. ted throughout dietinet sovereignties, and far exceed , in amount the real exchanges of Metes. There is no reason why ` . ..4ititawn may not ter conducted in the same :•, .tier ! with equal cheapness and safety. Certainly. thin might he accomplished, if it Were thyored by those most deeply interest. • and few, can doubt that their own into. VW, a, well as the general welfare of the 'ntinitryswoeld be promoted by leaving such -"'"- subjec ttn . the hands of those to whom it belong.:iiroperly n A system founded on pri. *ate interest ,' ente r pr ise , an d competition, 'tvithoutithe aid of legislative grants or reg. eatinns by law, would rapidly prosper; it (would' be free from the influence of political and extend - the same exemption .to - trade itself; and it would put nn end to those complaiuta of neglect, partielity, injus. 4ine and iiipprenion, which are the unavoida lhle results of interference by the Govern :;,;.ment tn"the proper concerns of individuals. former attempts on the part of the Go vernment to carry its legislation, in t hi., re . . Stiect, - further 'than 'wee' deigned by the •, constitution, have in the end proved jnjuri . and have served only_to convince the great body of the people, more and more, of the certain dangers of blending private in. 'wrests with the , operations of public heel • and there is no reason to suppose that eepetition of them now wield be more sue. ceselbl, It camel be concealed that there exist, in our community, opinions and feelings on 'thiesfiblect in direct oppoaition to each oth er. A large portion of them, combining great intelligence, activity, andfluence i pm no, doubt sincere in their boner that the Operations of trade ought to be assisted by such a connexion: they regard a national 'hookas neceovary' for this purpose; and they itre disinelined to'every measure that does stet tend, sooner or , tater, to the establish ment ortguch*nn institution... On the other hand'' a majority" of the people are believed • tobo irreconcilably opposed to that measure: they se/ wider such a concentration of power ' - datigeroes to their liberties . ; and many of Otetri regard it es ti violationof the constitu ' ilif‘'' , Tbiscollieion of opinion has doubt less • • " abed • much ofthe embarrassment to which h t o te commer cialtransactions ofh country 4 lately been exposed." B.anktiog has *OR* alualitical topic of the highest in. v 7 -t-betas trade has suflbred in the conflic t speedy termination of this onAtittlimits;tiesrever deferable, is scarcely eerie' teil. We have seen; for utterly 4 -4 '`„,.. 4oo4 lnentitti, that those who advticate a 'boa, by Whatever motive they fi 11. Ime‘iced, constitute a portion el ty, tort numerous tn'allow us to . ` a *milli abandonment of their fa- 1 . c:,sitber bend,,they must IL in erroutions estimate of the • - and temper' of the American WAR that they have comic', , . . ile*°o night Or itisofficient:grnunds, their persevering opPositionth such an institution; or that they aan be iridithed by pecuniary pressure, or by, any .other combination of circurnstancee, to surrender principles they have so long and. so inflexibly maintained. My own views of the subject are 'Linehan. gad. They have been repeatedly and un reservedly announced to my fellow.citizene, who, with full knowledge of them, conferred upon me the two hig - hest offices of the Gov ernment. On the last of these occasions, licit it due to the people to apprise them, distinctly, that, in the event of .my,election, I would not be able to cooperate in - the re establishment of a national bank. Tothese sentiments, I have . now only to add the ex pression of an increased conviction that the re-establishment of such a bank, in any form, whilst it would not accomplish the beneficial purpose promised by its. advocates, would unnair the rightful supremacy of the pupa. lar will, injure the .charscter and diminish the influence of our political system, and bring once more into existence a concentra. ted moneyed power, hostile to the spirit. and threntening the permariency of our republi- can institutions. ow, indeed, after 'idanianded fruit! and an omission Kiwi*" exchange to I and serious com serve to exempli. itnong some of our powers of the Gov control to subjects interfere. They tion of an institu ts. On the eon. Local banks have been employed for the deposite and distribution ,of the revenue, et all times v:irtially, and, on three different occasions, exclusively: first, anterior,to the establishment of the first Batik of the United States; secendly,in the iniervel between the terrnieation sAciihret institution and the char ter of its successors and, thirdly, during the limited .period •which has now so abruptly closed. T 4 ,conwixinn, thus repeatedly at tempted, proved unsatisfactory on each suc cessive oecasionuotwithstanding the various measures which were adopted to facilitate or insure its success. On the last occasion, in the year 1831, the employment of the State banks was guarded,especially,in every way which experience and caution could sug gest. Personal security was required for the safe-keeping and prompt payment of the moneys to be received; and full returns of their .condition were, (rem time to time, to he made by the depositaries. in the firt stages, the measure was eminently success fulsnetwitlistanding the vielent opposition of the Bank of the United States, and the un ceasing (glints made to overthrow it. The selected banks performed, with fidelity, end . without any embarrassment to themselves or to the community, their engagements to the Government; and the system promised to be permanently useful. But when it be came necessary,under the net of June,aB3B, to withdraw from them the pnblie money, for the purpose of placing it in additFinal in. stitutions, or of transferring it to the States, they found it, in many casest, inconvenient to comply with the demands of the Treasu ry, and numerous and pressing applications were made kir indulgence or relief. As the instalments under the deposit° law became payable, their own embarrassments, and the necessity under which they lay ofcurtailing their discounts and calling in their debts, increased the general distress, and contribu• ted, with other causes, to hasten the revul sion in which, at length, they, in common with the other banks, wore fatally involved. Under these circumstances, it becomes our solemn duty to inquire whether there are not, in any connexion between the Gov °remota and banks of issue, evils of great magnitude, inherent in its very nature, and against which no precautions can effectually guard. Unforeseen in the organization of the Gov ernment,and forced on the Treasury by early necessities, the practice of employing banks was, in truth, from the beginning, more a measure of emergency than of sound policy. When we started into existence as a nation, in addition to the burdens of the new Gov ernment, we Assumed all the large but hon orable- load of debt which was the price of our liberty; but we hesitated to weigh down the infant industry of the country by resort ing to adequate taxation for the necessary revenue. The facilities of banks, in return for the privileges they ncqui red,were prompt ly offered, and, perhaps,too readily received by an embarrassed Treasury. During :he long continuance of a national debt, and the intervening difficulties of a foreign war, the connexion was continued from motives of convenience. But these causes have. long since passed away. We have nn emergen cies that make banks necessary to aid the wants of the Treasury; we have no load of national debt to provide for; and we have on actual deposilo a large surplus. No public interest, therefore,now requires the renewal of a connexion that circumstances have dis solved. The complete organization of our Government; the abundance ofour resources; the general harmony which prevails between —all enable us now to select the system most consistent with the constitution, and most conducive to the public welfai e. Should we, then, connect the Treasury,for a fourth time, with the local hanks, it can only bo under a conviction that.past failures have arisen from accidental, not inherent defects. A danger, difficult if not impossible to be avoided in such an armngementis made strik ingly evident in the very event by which it has now been defeated. A sudden act of the banks intrusted with the funds of the people deprives thEareasury,without fault or agen cy of the Government, of the ability to pay its oreditors in the currency they have by law a right to demand. .Thiacircumstance, no fluctuation of e,ommeroe could have pro duced, if the - public revenue had been col lected in the legal curreney,and kept itithat form by the officers of the Treasury. "The citizen whose waney was in bank, receives it bank, since the suspension, at a sacrifice in its amount; whilst he who kept it in the legal currency of the country,and in his own possession, pennies without loss the current of his business,. The Government, placed in the situation of the former, is involved in embarrassments it could not have suffered, had it pursued the course of the latter. These enibarraesmenteare atoreoViitaugatented by those sahgary and just laws which forbid it to use a depreciated currency,. and, by so doing,take from the Government the ability which individuals have of accommodating .their transactions to such a catastrophe, A system which oan,in a time of profowid peace,when there is a large revenue laid by, ' thwtsad4enllt preveat the atelicat iou a ild tlie he different States and with foreign powers use of the money of thaponple in the manner and for the elects they have di rected,cannot be wise. flut - who can think, without pain ful refleetion,that, under it, the same unfore seen events mightrhare befallen us in the midst ola war, and taken (*minims, at the moment when most wanted, the use of those very means which were treasured up to pro mote the national welfare,, and guard our national rights! To such embarrassments and to such dangers will this Government be always exposed,whilst it takes the moileys raised for, and necessary to, the publii ser• vice, out of the hands of its own offieers,and converts them into a mere rigkref action iitainst corporations ii pd with the pos session of them. Neiman such results be effectually guarded against in such a system without investing the Executive with a con trol over the banks themselves,whet he r State or national,that might with reason be objec ted to. Ours is, probably,the only Govern ment in the world that is liable, in the man agement of its fiscal co ncerria,to occurrences like these, But this imminent risk is not the only dan• ger attendant on the surrender of the public money to the custody and control of local corporations. Though the object is aid to the Treasury, its etrect ti►ay be to introduce int o tile op. rations of the Government influ• ences the most subtle, founded ou interests the most selfish. The use by the hanks,for their own benefit of the money deposited with them, has re• ceived .he sanction °Otte Government from the commencement of this connexion. The money received from the people, n►steud of being kept till it is needed for their use, is, in consequence of this authority, a fund on which discounts are made for the profit of those who happen to be owners of stock in the banks selected as depositories. The sup posed, and often exaggerated, advantages of such a boon,will always cause it to be souulit for with avidity. I will not stop to consider on whom the patronage incident to it is to be conferred; whether the selection and control be trusted to Congress or to the Executive, either will be subjected to appeals made in every form which the sagacity ofinte rest can suggest. The b:tnks, under such a system, are etimulated to make the most of their for tunate acquisition; the deposites are treated as an increase of capital; loans and circula tion are rashly augmented; and when the public exigencies require a. return, it is at. tended with einbarras.smentsnot provided for nor foreseen, Thus, banks that thought themselves most fortunate when the public funds were received, find themselves most embarrassed when the season of payment suddenly arrives. Unfortunately, too, the evils of the'system are not limited to the hanks. It stimulates a general rashness of enterprise, and aggra vates the fluctuations of commerce and the currency. This result was strikingly exhib iced during the operations of the late deposite system, and especially in the piirchase of public lands. The order which ultimately directed the payment of gold and' silver in such purchases. greatly checked, bUt could not altogether prevent, the evil. Specie was indeed !tore difficult to be procurenitlffl • notes which the banks could themselves cre ate at pleasure; but still,being obtained from them as a loan, and returned qs a deposite, which they were again at liberty:to use, it only passed round the circle with diminished speed. This operation could not have been perforrned,liad the funds of the Government gone into the Treasury to be regularly dis bursA, and Lut i.;to batiks to tiu learle‘l out for their own profit,while they were permit. ted to substitute for it a credit in account. In expressing these sentiments, I desire not to undervalue the benefits of a salutary credit to any branch of enterprise. The credit bestowed on probity and industry is the just reward of merit, and an honorable incentive to further acquisition. None op pose it, who love their country and under stand its welfare. But, when it is unduly encouraged; when it is made to inflame the public mind with the-temptations of sudden and unsubstantial wealth; when it, turns in dustry into paths that lead, sooner or later, to disappointment and distress, it becomes liable to censure, and needs correction. Far from helping probity and industry, the ruin to which it leads falls most severely on the great laboring classes, who are thrown sud denly out of employment, and,by the failure of magnificent schemes never intended to enrich them, are deprived, in a moment, of their only resource. Abuses of credit and excesses in speculation will happen,in despite of the most salutary laws: no Government, perhaps, can altogether prevent them; but surely every Government can refrain from contributing the stimulus that calls them in to life. Since, therefore, experience has shown, that to lend the public money to the local banks is hazardous to the operations of the Government, at least of doubtful benefit to the institutions thernseNes,and productive of disastrous derangement in the business and currency of the country, is it the part of wisdom again to renew the connextoni It is true that such an agency,is, in many respects, convenient to the Treasury; but it is not indispensable. A limitation of the ex• pensesof the Government to its actual wants and of the revenue to those expenses, with convenient means for its prompt application to the purposes for which it Was raised, are the objects which we should seek to accom plish. The collection s safe-keeping,transfer, and disbursement of the publio money, can, it is believed, be well managed by o ffi cers of the Government. Its collection, and, to a great extent, its disbursement also, have in deed been hitherto conducted solely by them; .neither national nor State banks, when em ployed,being required to do more than keep it safely while in their custody,and transfer and pay it in such portions,and at such times, as the Treasury than direct. Surely, bangs are not more able than the Government ..to secure the money in their possession against accident,violenoear fraud, The assertion that they are sommet assume that a vault in a bank is stronger thana vault, in the Treasury; and that directors,cashiers, and clerks, not selected by the Government, nor• under its control, are more worthy of confideoce than officers'selected from the people, and responsible to the Government; ofcers bound by offri at oaths and boats. Cut a faithfullterformance of their duties, and .soustantly subject lathe alipqrVilttOn of Con greBg. The difficulties of transfer, and the aid heretofore rendered by banks,have been less than is usually supposed, The -actual ac counts show that by far the larger portion of ilayments is made within short-or conve nient distances of aollectionr and the whole number of warrants i