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* Jr '■»?; wucgnOfl WILLIAM B. JOWEB. AVGUSTA, «EO., MOWMY EVEYI\G } SEFT. 11, 1837. [Sp.!ii-wcok?y.}--\ o|. 0 |. V.~N O ;-79* jmSluftclJ DAILY, SEMI-WEEKLY AM) WEEKL\ At iVo. 261 Broad Street. TEI MS —TW3y papei, Ten’ Dollars por annum in advance. Semi-wcelily pap?r, ni Fiv« Dollars as herelol.ire li advance, or Six at tlie end »l ilii year. Woskly pa oar, Three Dallurs in advance or Four at the end of the year. M— pwni'.i lot* yiw><.wjjivx>i ucj .-cr—rwi CHIIONtCLiS AND SENTINEL. aywiistaT Fridmj- Kvoninsr. Sept. 8, 1837. FOR GOVERNOR GEOK«E R. «IIi»B2S. FOR SENATK, ANDREW J. MILLER. FOR RFPRF.SENTATIVEK. CHARLES J. JENKINS, GEORGE W. CRAWFORD, WILLIAM J. RHODES. THE MESAGE. Wc reserve our Comments upon this document for another day. We prefer that our readers should first judge of it for themselves, and after ward.'* shall have our opinion, or rather transla tion in it. Wc cannot refiain from saying a word or two, about the interest manifested hy all parties to see this Message. It was received here in 47 hours from WaahHigton City ! In four hours after the Express Mad had arrived, it was all in type in our cilice, and in one hour and a half afterwards it was put to Press, some delay having occurred in arranging the Form. From 150 to 200 copies were then taken from the office by the anxious and impatient crowd of citizens, as fast ns they .could be thrown off from the Press. The copy, forwarded by our Correspondent was the only ,» one received at this place, thus compelling every body to wait until it could be re-printed. At a few minutes before five o’clock, Messrs. Guicu & Thomson of the Constitutionalist, received a co py from our office, and before 12 o’clock at night it was put to Press in theirs—the Message, long as it is,having thus gone, through two separate edi tions in this place, within two days r.ml a half after the moment of its delivery to Congress in Washington City. A particular friend of ours, (and one who by the way is a political opponent of H. V. Johnson ) Esq.,) has suggested to us that Mr. J. never was a nullifier, and that Bob Short has consequently done him injustice in ascribing to him a change of principles. If this bo true, we have no doubt but that Mr. Short will readily recant what he has said in relation to that gentleman ; and wc give him this hint now, before any complaints have reached our cars, that ho may have an op portunity of so doing. At the same time* we must remark, that the mistake was a very natural one On the part of Mr. Short. We had also ta ken up his error, (we cannot say now from what source,) or we would certainly have corrected our friend Bob when his piece appeared. After all however, there is enough in Mr. Shorts Commu nication to show that ho looked with very great indulgence up to Mr. J’s. supposed change of po ll U-sJ rentimonts, for he hears testimony to the “honesty” and cleverness of that gen'letnan, in common with his colleagues. This much lor S. | until he can speak for himself, —which will pro [ bably be in two or three days. FOB THE CHRONICLE AND SENTINEL. I “Richmond,” in the Constitutionalist, replies I to me as if he were the author of the letter to the f Standard of Union, on which I remarked last I week. In that letter, ho said the Union party “eschew I ed all compromise.” He now says the Slate j Rights party, “violated the faith,” pledged last [ year, in not continuing the compromise. Now, ( if there were any pledge of faith, jit was, of course, I mutual. Either then, his party violated their I faith, or his letter to the Standard was FALSE. I Here is a simple dilemma, from which all his i Van Buren squirming cannot extricate him. ANTI-VAN. From the New York Herald, Sept. 4. I The packet slTip Ricliard- I son, from Havre, sailed on the 4th ult., has arriv- K ed. Don Carlos remains, by last accounts, still in- B disposed at Cantavicja. Esparleroand Oraa are K directing their march towards the place to besiege B it. ! , Taglioni had arrived in Paris from her triumph al rtflt visit to England. She was to proceed imme- I diatcly for St. Petersburg!!, where she wasexpec- B led by the first of this month. Princess Polignac and family have arrived at I Dieppe. B The Commerce says that matrimonial alliance I is on the tapis, between the Princess Mary (the ■ king’s eldest unmarried daughter) and Prince Al- B exander of Wurtemberg, cousin to the King of B Wurtemberg. The Prince has been in Paris fur I the last ten or twelve days. The Duchess of Orleans, having read in the ■ journals thcaccounls of the conduct of the miller, B near Saint Etienne, who, on his premises being B inundated by the overflowing of the river Furet, K displayed so much courage in saving his mother, ■ his wife, and his children, leaving his property to K the merciless torrent, immediately sent him an or ■ der fur 200 trancs. K Queen Christina of Spain shows great spirit ■ upon herbirthday. The Piesidcntof the Council ■ entered and demanded the dismissal of the Min ■ islcr qf War. Her Majesty became enraged, and ■ reproached Calatrava with wishing to drive from ■ her Council all those who had constantly proved ■ themselves attached to the interests of her diugh ■ for, adding, “It would have been much better to ■ have prepared an act of clemency in favor of those ■ whom you have lately caused to be arrested, and ■ among them, my own chaplain.’ Calatrava ro ■ plied. ‘Madam, that cannot be. On the con- Birary, I lay before you today the names of several ■grandees, who must also be incarcerated. As to displacing of Count Almodovar, I ask it only Hbecause it is demanded by public opinion, to Byhich you must submit.’ Upon this, the Queen the conference by saying, ‘Well, I will of it. You may retire.” Messrs. Anselrao, Salomon, and James Ruths- were at Paris. It is bleievod that a final termination as to the loan so long solicited by government of Queen Christina, is on the ■ Mr. Greely, who was lately released from im jSbrisonment in Frcderiekton, New-Brunswick, BA. left Bangor, on his return to the Madawaska BKrrUory, to resume the taking of the census ■HKre. WzA Wiiappbr !—The following from the HfHa Boonvtlle, Missouri, Herald, a “ leetic” ■■■passes in the way of extravaganza even ||l tSI stories of Ilackelt’s Wildfire. kI;S|V friend writes us from St. Charles, that Kjßce the inundation of Chanvin’s bottom op- IgKito that place, the musquetoes have been ■B very thick that the moon could’not rise ■foiigh them. We suppose this is the cans moon rising so late for some i.’-glUs p <»’ tew » —son—rmi m ——r—torwta———— | MESSAGE FROM THE I PRESIDENT OF THE UNITE D STATES 'Vo the two Houses of Congress at the Com ■ moHcement of the first session of the 'Twenty 'fifth Congress. Fellow Citizens of the Senate ami House of Hepresenlalives. The act of the 23d June, 1836, regulating the depositee of the public money, and direct ing the employment of State, District, and Territorial banks fur that purpose, made it the duty of the Secretary of the Treasury to discontinue the use of such of them, as should at any time refuse to redeem their notes in specie, and to substitute oihet banks; provi ded a sufficient number cruld be obtained to receive the public depnsitos, upon the terms and conditions there n prescribed. The gen eral and almost simultaneous suspension of specie payment by the banks in May last, ren dered the performance of this duty imperative in respect to those which had been selected under the act; and made it, at the same time, impracticable to employ the requisite number ot others, upon the prescribed condi tions. Tito specific regulations established by Congress, for the deposits and safe keep ing of the public moneys, have thus unox pe<’t»d!y become inoperative, 1 fell it tube my du'y to afford you an early opportunity for the exorcise of your supervisory powers o"?r the subject. I was also led to apprehend that the sUS pension of specie payments, increasing the embarrassments before existing, in the pecn. niary affairs of the country, would so far di minish tl e public revenue, that the accruing receipts into the Treasury, would not, with the reserved five millions, be sufficient to defray the unavoidable expenses of the Government, until the usual period for the meeting of Con gress ; whilst the authority to call upon the States, for a portion of the sums deposited with them, was too restricted to enable the Department to realize a sufficient amount from that source. These apprehensions have boon justifis.l by subsequent results, which render it curtain that this deficiency will oc cur, if additional means bo no! provided by Congress. Tito difficulties experienced by the mercan tile interest, in meeting their engagements, induced them to apply to me, previously to • the actual suspension of specie payments, for indulgence upon tlioir bonds for duties ; and all the relief authorized by laA’, was promptly and cheerfully granted. The dependence ot the Treasury upon the avails of those bonds, to enable it to make tbe deposites with the States required by law, led me in the outset to limit this indulgence to the Ist of Septem ber, but it has since been extended to the Ist of October, that the matter might be submit ted to your further direction. Questions were also expected to arise in the recess in respect to the October instal ment of those deposites, requiring the inter position of Congress. A provision ofanolher act, passed about the same time, and intended to secure a faithful compliance with the obligation of the United States, to satisfy all demands upon them in specie or its equivalent, prohibited the offer ol any bank note, not convcrtable on the spot, into gold or silver, at the will of the holder; and the ability of the Government, with mil lions on deposite, to meet its engagements in the manner thus required by law, was render ed very doubtful by the event to which I have referred. Sensible that adequate provisions for these unexpected exigencies could only bo made by Congress; convinced Uiat some of them would be indispensably necessary to the pub lic service, before the regular period ot your meeting; and desirous also to enable you to exercise at the earliest moment, your full con i stilutional powers for the relief of the coun , try, I could not, with propriety, avoid subject ing you to the inconvenience of assembling aUts earlv a day as the state of the popular representation would permit. lam sure that I have done but justice to your feelings, in believing that this inconvenience will he cheerfully encountered, in the hope of render ing your meeting conducive to the good of the country. 1 During the earliest stages of the revulsion through which we have just passeJ, much ac rimonious discussion arose, and great diver i sity of opinion existed, as to its real causes. This was not surprising. The operations of credit are so diversified, and the influences which affect them so numerous, and often so subtle, that even impartial and well informed tipwaimg nrp seldom found Iff agree in respect to them. To inherent uirticiiTtios wore huso added other tendencies, which were by ho means favorable to the discovery of truth. It was hardly to be expected, that those who lisapproved the policy of the Government in relation to the currency, would in the ex cited state of public fooling produced by the occasion, fail to attribute to that policy any extensive embarrassment in the monetary affairs of the country. The matter thus be came connected with the passions and con flicts of party ; opinions were more or less affected by political considerations ; and dif ferences were prolonged which might other wise have been determined by an appeal to , facts, by the exercise of reason, or by mutual concession. It is, however, a cheering reflec tion, that circumstances of this nature cannot prevent a community so intelligent as ours, from ultimately arriving at correct conclusions. Encouraged by the firm belief of this truth, I proceed to state my views, so far as may be necessary to a clear understanding of the remedies I feel it my duty to propose, and of the reasons by which 1 have been led to re commend them. The history of trade in the United States, for the last three or four years, affords the most convincing evidence that our present condition is chiefly to be attributed to over action in all tlie departments of business ; an over-action, deriving, perhaps, its first impul ses from antecedent causes, but stimulated to its destructive consequences by excessive issues of bank paper, and by other facilities for the acquisition and enlargement of credit. At the commencement of the year 1834, the banking capital of tbe United States, includ ing that of the National Bank then existing, amounted to about two hundred millions of dollars ; the bank notes then in circulation to about ninety-five millions ; and the loans and discounts of the banks to three hundred and twenty-four millions. Between that time and the first of January 1833; being the lat est period to which accurate accounts have been received, our banking capital was in creased to more than two hundred and fifty one millions ; our paper circulation to more than one hundred and forty millions, and the loans and discounts to more th in four hundred and fifty seven millions. To this vast increase are to be added the many millions of credit, acquired by means of foreign loans, contract, ed by the States and State institutions, and, above all, by the lavish accommodations ex tended by foreign dealers to our merchants. The consequence of this redundancy of credit, and of the spirit of reckless specula tion engendered by it, were a foreign debt contracted by ourcitizons, estimated in March last at more than thirty millions of dollars; the extension to traders in the interior ot our Country of credits for supplies, greatly beyond the Wants of the people ; the investment of j thirty-nine and a half million 0 .of dollars in unproductive public lands, in the years 1835 and 1836, whilst proceeding year the sales amounted to only four ami a half mill ions ; the creation of debts to an almost ■ countless amount, for real estate in existing or anticipated cities and villages, equally un productive, and at prices now seen to have been greatly disproportionate to their real value; the expenditure of immense sums in improvements which, in many cases, have been found to be ruinously improvident; the diversion to other pursuits of much of the labor that should have been applied to agri. culture, thereby contributing to the expendi ture of largo sums in the importation of grain from Europe ; an expenditure which, amount ing in 1834, to about two hundred and filly thousand dollars, was, in the first two quarters of the present year, increased to more than two millions of dollars; and finally, without enumerating other injurious results, the rapid growth among all classes, and especially in our great commercial towns, of luxurious hab its, founded too often on merely fancied wealth, and detrimental alike to the industry, the resources, and the morals of our people. It was so in possible that such a slate of things could long continue, that the prospect ot revulsion was present to the minds of con siderate men before it actually came. None ■ however, had correctly anticipated its eeveri • ty. A concurrence of circumstances inadc qn.if.e of themselves to produce such wide spread and ca!am; , ‘' , ds emlv.tvasrnents, tend ed so greatly to aggravate t hem, t!'"t they can not be overlooked in considering their history. Among these may be mentioned, most promi nent, the great loss of capital sustained by our commercial emporium in the fire ot Decem ber, 1835—a loss the effects of which were underrated at the time, because postponed for a season by the great facilities of credit then existing; the disturbing effects in our cominon.ial cities, of the transfers of the public moneys required by the depo site law of June, 1536; and the measures adopted by the foreign creditors of our mer chants to reduce their debts, and to withdraw from the United States a large portion of our specie. However unwilling any of our cilizons may heretofore have been to assign to these causes the chief instrumentality in producing the present state of things, the developments sub sequenlly made, and the actual condition of other commercial countries, must, as it seems to mo, dispel all remaining doubts upon the subject. It has since appeared that evils, similar to those suffered by ourselves, have been experienced in Great Britain, on the continent, and indeed, throughout the com mercial world; and that in other countries, as in our own, they have been uniformly preced ed by an undue enlargement ot the bounda ries of trade prompted, as with us, by unpre cedented expansions of the systems of credit. A reference to the amount of hanking capital, and the issues of paper credits put in circula tion in Great Britain, by banks, and in other ways, during the years 1834, 1835, and 1836, will show an augmentation of the paper cur rency there, as much disproportioned to the real wants ol trade as in the United States. With this redundancy of the paper currency, there arose in that country also a spirit of ad venturous speculation, embracing the whole range of human enterprise. Aid was profuse ly given to projected improvements. Large in vestments were made in foreign slocks and loans, credits for goods were granteJ with unbounded liberality to merchants in foreign countries; and all the means of acquiring and employing credit were pul in active opera tion, and extended in thetr effec's to every de partment of business, and to every quarter of • the globe. The reaction was proportioned in its violence to the extraordinary character of events which preceded it. Tne commercial community of Great Britain were subjected to the greatest difficulties, and their debtors in ■ litis country were not only suddenly depriv ed o accustomed and expected credits, but called upon for payments, which, in the ac tual posture of things here, could only be made through a general pressure, and at the most ruinous sacrifices. In view of these facts, it would seem impossij ble for sincere inquirers alter truth to resist the conviction, that the causes of the revulsion in both countries have been substantially the scan j Two natons, the most commercial in the world, enjoying but recently the highest tie. gree of apparent prosperity, and maintaining with each other the closest relatfbns, are sud denly, in a time of profound peace,and without any great national disaster, arrested in their car er, and plunged jnlo a state of umbtrrass im irt and -tva-Wr/tti Cmmtrirs tIITVC witnessed the same redundancy of paper mo ney, and other facilities of credit; the same spirit of speculation ; the same partial succes ses j the same difficulties and revorsnt; and, at length, nearly the same ca tastrophe. The most material difference be tween the results in the two countries has on ly been, that with us there has also occqred an extensive derangement in the fiscal affairs of the Federal and State Governments, occasion ed by the suspension of specie payments by the banks. The history of these causes and effects, in Qredt Britain and the United Stales, is sub stantially the history of the revulsion in all other Commercial countries. The present and visible effects of these circumstances ou the operations ot the Gov ernment, and oh the industry ot the people, point out the objects which cal! fur your im mediate attention. They are—to regulate by laws the safe keep ing, transfer, and disbursement, of the public moneys ; to designate the funds to he received arid paid by the Government; to enable the Treasury to meet promptly every demand up on it; to proscribe the terms of indulgence, and the mode of settlement to he adopted, as well m colluding from individuals the reven ue that has accrued, as in withdrawing it from former depositories, and to devise and adopt such further measures within the constitution al competency of Congress, as will bo best cal ciliated to revive the enterprise and to promote the prosperity of the country. For the deposite, transfer, and disburse ment, of the revenue, National and State Bunks have always, with temporary and lim ited exceptions, been heretofore employed; but, although advocates of each system are to he found, it is apparent that the events of the last few months have greatly augmented the desire, long existing among the people of the United States, to separate the fiscal concerns of the Government from those of individual or corporations. Again, to create a National Bank, as a fis cal agent, would bo to disregard the popular will, twice solemnly and unequivocally ex pressed. On no question of domestic policy is there stronger evidence that the sen timents of a large majoniy are deliberately fixed ; and I cannot concur with those who think they see, in recent events, a proof that these sentiments are, or a reason, that they should be, changed. Events, similar in their origin and char acler, have heretofore frequently occurred without producing any such change; and the lessons of experience must be forgotten, if we suppose that the pr .rent overthrow of credit would have been prevented by the exis tence of a national bank. Proneoeuii to ex -1 cccsive issues has ever been the vice of the i bat king system; a vice as prominent m nation i a! ns in State institutions. This propensity is as i subservient to the advancement of private in terests in the one as in the othar; and those who direct them both, being principally guided by the same views, ami influenced by the ~itir.a motives, will be equally ready to stimulate ex travaganee of enterprise by improvement ol credit. How stikmgly is th's conclusion sus tained by experience. The Bmk of the Uni ted States, with the vast powers conferred on it by Congress, did not or could not prevent former and similar embarrassments, nor has the still gre iter strength it has been said to possess, under its present charter, enabled it, m the existing emergency, to check other in stitutions or even to save itself. Ingreal Britain where it has boenscenffhesame causes havebeen attended with the same effects, a national bank possessingJpoWcrs far greater than are asked for by the warmest advocates of such an icstitu tion here, lias also proved unable to prevent an undue expansion of credit, and the evils that flow from it. Nor can I find any tenable ground for the re-establishment of a national bank, in the derangement alleged at present to exist in the domestic exchanges of the country, or in the facilities it may be capable of affording them. Although advantages of this sort vvere anticipated when the first Bank of the United States was crested, they .were regarded an incidental accommodation ; not one w!lie Federal Government was botind, of e» , d be called upon to furnish. This accentin'. lation is now, indeed, after the lapse of tv ‘ ma ny years, demanded from it as among it* first duties; and an omision to aid and regulate CußunetT'ol exchange, is treated as a ground ofloud anti seriftUs complaint. Such results only serve to exemplify the constant desire, among some of our citizens, to enlarge the powers of the GoveifimetiL and extend its control to subjects with which ff should not interfere. They can never justify the cream,,', of an institution to promote such objects. On the contrary, they justly excite among the corn mun ty a more diligent inquiry into the char acter of those operations of trade, towards which it is desired to extend such peculiar fa vors. The various transactions which hoar the name ot domestic exchanges, ditfer essential ly in their nature, operation, and utility- One class of them consists of bills of exchange, drawn for the purpose of transferring actual - captital from one part of the country to another, or to anticipate the proceeds of prop erty actually transmitted. Bdls of this de scription are highly useful in the movements of trade, and well deserve all the encourage ment which can rightfully be given to them. Another class is made up of bills of exchange, nut drawn to transfer actual capital, nor on the credit of properly transmitted, but to cre ate fictitious capital; partaking at once of the character of notes discounted in bank, and of bank notes incirculation ; and swelling tbe mass of paper ere fits to a vast extent in j tiie most objectionable manner. These b 11s ( have formed, for the last lew years, a large | pioportion of what are termed the domestic j exchanges of the country, serving as the , moans of usurious profit, and constituting the most unsafe and precarious p iper in circitla- , lion. Tills species of trafic, instead of being < upheld, ought to be discountenanced by the t Government and the people. , In transferring its funds from place to place, i the Government is on the same footing with the private citizens, and may resort to the samo legal moans. do so through the medium of bills drawn by itself, or purchased from o'hers ; and in these operations it may, in a manner undoubtedly constiluti 1 - .nd legitimate, facilitate and assist exchanges of individuals founded on real transactions of \ trade. The extent to which this may be done, and the best means of effecting it, arc entitled 1 to the fullest consideration. This lias been 1 bestowed by the -Secretary of the Treasury, 1 and his views will he submitted to you in his ' ■ report. But it was not designed by the constitution \ that the government shou’d assu jtc the tnan i agement of domestic or foreign exchange. \ j It is indeed authorised to regulate by law the , commerce between the States, and to provide , j a general standasd of value, nr medium of I eqchange, in gold and silv r; but it is not its t province to aid individuals in the transfer of | their funds,otherwise than through the facili i ties afforded by the Post Office Dnpar imint. . As justly might it be called on to provide for t the transportation ol their merchandise.— • These are operations of trade. They plight t to bo conducted by those who are interested r in them, in the same manner that the iiicidou . tal difficulties of other pursuits are cncuunt i nved by other classes of citizens. Much aid 1 • has not been deemed necessary in other coun i tries. Throughout Europe, the domestic as ■ well as the foreign exchanges are carried on , by private houses, often, if not generally, with- ' ■ out the assistance of banks. Yet they extend throughout distinct sovereignties, and far ox ■ ceed in amount the real exchanges of the U. i S'ates. There is no reason why our own F may not bo conducted in the same manner, • with equal cheapness and safely. Certainly I this might be accomplished, if it were favored by those most deeply interested ; and few can i doubt that their own intercatj as well as the • general welfare of the country, Would he pro moted by leaving such a subject in the hands of those to whom it properly belongs. i A system founded on private interest, cnlcr , prise and competition, without the aid of legisla , live grants or regulations by law, would rapidly prosper; it would be free from tbe influence of political agitation, and extend the same exemp , iidb to trade itself f and it would put an end to . those complaints of neglect, partiality, injustice, and oppression, which arc tlie unavoidable results , of interference by the Government, in the proper concerhs of individuals. All former attempts on ' lb« part of tbe Government to carry ks legisla | lion, ill this respect, further than was designed by the Yonstitution, have in the end proved in jurious, and have served only to convince the great body of the people, more and more, of tlie certain dangers ofUlending private interests with the operations of public business; and there is no reason to supposs that a repetition of them ! now would be more successful. It cannot be concealed that there exists, in our community, opinions and feelings on ibis subject ! in direct opposition to each other. A large por tion of them, combining great intelligence, activi ty, and influence, are do doubt sincere in their be lief that the operations of trade ought to bo assis tod by such a connection; they regard a national bank ns necessary for Ibis purpose, and they are disinclined to every measure that docs not lend, sooner or later, to the establishment of such an institution. On the other hand, a majority of the people are believed to be irreconcilably opposed to that measure: they consider such a concentration , of power dangerous to their liberties; and many , of them regard H as a violation of the Constitu tion. This collision of opinion has, doubtless, , caused much of the embarrassment to which Ilia ; commercial transactions of the country have late- ) ly been exposed. Banking has become a political , topic of the highest interest, and trade has suffer ed in the conflict of parties. A speedy termina tion of Itiia elate of things, however desirable, is scarcely to be expected. We have seen (or near ly half a century, that those who advocate a na tional bank, by whatever motive they mayjbo in fluenced, constitute a portion of our community too numerous to allow us to hope for an early . abandonment of their favorite plan. On tbe other hand, they must indeed form an erroneous esti mate Os th« intelligence and temper of tbu Amen- ' j tan people, Who suppose that hi •• eontin- 1 —ii ■ !■>■—■—!■■■ ■■——!■ twnwKayr-Tr—vn ■-sat, on slighter insufficient grounds, tlTcir pers°- vering opposition to such an institution ; or that ‘hey can bo induced by pecuniary preasuie or by .ny other combination of circumstances, to sur render principles they have so long and so inflex ibly maintained. My own views of the subject are unchanged. They have been repeatedly and unreservedly an nounced to my fellti v citizens; who, with full knowledge of them, conferred upon me the two highest offices of (lie Government. On tbe Inst of these occasions, I felt it duo to the people to apprize them •li ttnclly, that, in the event of my election, I would not he able to co-operate in the ; reestablishment of a national bank. To these sentiments, I have now only to ad I the expression of au increased conviction, that thg re-establish merit of such a bank, in any form.wbilst it would not accomplish the beneficial purpose promised by its advocates, would impair the rightful suprema cy of the popular will; injure the character and diminish the influence of our political system; ami tiring once more into existence a concentrated moneyed power, hostile to tile spirit, and threat ening the permanency, of our republican institu tions, Local banks have been employed for the depo site and distribution of the revenue; at all limes partially, and on three different occasions, exclu sively; first, anleiior to the establishment of the first bank of the United Sialcs; secondly, in the Interval between lilt termination of that institu tion and the charter of its successor; and thirdly, during the limited period which has now so ab ruptly closed. The connection thus repeatedly attempted, proved unsatisfactory on each succes sive occasion, notwithstanding tile various meas ures which wore adopted to facilitate or insure its success. On the last occasion, in the year 1833, the employment of tile Stale banks Was guarded especially in every way which experience and caution could suggest. Personal security was required for the safe-keeping and prompt pay ment of the moneys to be received,and full returns of their condition were, from time la tithe td be ffio depositories. In the filet sieges the measure was eminently successful, notwithstand ing the violent opposition of the Bank of the U. Stales, and the unceasing efforts made to over throw it. The select banks performed with fidel ity, & without any embarrassment to themselves I I or the community, their engagements to the Go vernment, and tins system promised to be perma- ' nently useful. But when it became necessary under the net of June, 1836, to withdraw from 1 them the public money,for the purpose of placing ‘ it in additional institution, or of transferring it to ‘ the States, they found it, in many cases, incon- 1 venient to comply with the demands of the Trea- j sury, and numerous and pressing applications were were made for indulgence or relief. As the f instalments under the deposite law became paya ble, their own embarrassments, and the neeessi- J ty under which they lay of curtailing their dis counts and Calling in tlioir debts, increased the f general distress, and contributed, with other cau- 1 sea, to hasten the revulsion in which, at length, 1 they, in common with the ether banks, were fa- 1 tally involved. Under these circumstance's, It becomes our so lemn duty to inquire whether there are not, in * any connection between the Government and 1 banks of Issue, evils of great magnitude, iiilioron- 1 in its very nature, and against which no precau- r tions can effectually guard. J; Unforeseen in the organization of the Govern- “ ment, and forced on the Treasury by early tie- •* ccasitics, the practice of employing banks, was in ' truth, from tbe beginning, more a measure of emergency than of sound policy. When we '■ started into existence as a nation, in addition to 1 the burdens of the now Government, we ussum- 1 od all the large but honorable load of debt which 1 was the price of our liberty; Imt wc hesitated to ‘ weigh down the inlant industry of tbe country ' by resorting to adequate taxation for the noeessn- * ry revenue, The facilities of banks, in return fur ‘ the privileges they acquired, Were promptly offer ed, and perhaps too readily received, by an ornj ’ barrasse 1 Treasury. During the long conliu- 1 nance of a National debt, and the intervening dis- 1 Acuities of a foreign war, the connection was con tinned from motives of convenience; but those 11 causes have long since passed away. Wo have c no emergencies that make banks necessary to 1 aid the wants of the Treasury ; we havd no load * of national debt to provide for, and we have on r actual deposite a largo surplus: No public in- I lerost, therefor.-,, now requires the renewal of a c connection, circumstances have dissolved. The complete organization of our Government, the * abundance ol our resources, the general liaimoiiy f which prevails between the different Slates, and ' with foreign Powers, all enable ns now to select ' the system most consistent with tlie Constitution, 1 and most conducive, to tbe public welfare. Should ' wc then, connect the Treasury for a fourth time with the local banks, it can only be under a eon- p viction that past failures have arisen from acd- 1 dental, not inherent, defects. * A danger, difficult, if nut impossible, to hd aw 1 oided in such an arrangement, is made strikingly 1 evident in the very event by which it has been now defeated. A sudden act of the banks intrusted ' with the funds of the people, deprives the Tri as- 1 ury, without fault or agency of the government, ' ol the ability to pay i s creditors in the currency ' they have by law a tight to demand. This cir- 1 cuinstance no fluctuation of com merce could have * produced, if tbe public revenue bad been collect- 1 led in the legal currency, and kept in that form ' by the officers of the Treasury. The citizen f whose money was in bank receives it back, since ( the suspension, at a sacrifice in its amount; ‘ wliilst ho who kept it in the legal currency of the 1 country, and in his own possession, pursues, t without loss, the current of his business. The Government, placed in the situation of the former * is involved in embarrassments it could not have t suffered bad it pursued the course of the latter, s These embarrassments arc, moreover, augmented I by those salutary and just laws which foibid it to i use a depreciated currency, and, by so doing, n take from the Government the ability which indi- I viduals have of accommodating their transactions I to such a catastrophe. a A system which can, in a lime of profound < pence, when there is a largo revenue laid by, thus 1 suddenly prevent the application and toe use of I the money of the people, in the manner and for 1 the objects they have directed, cannot be wise ; 1 but who.can think, without painful reflection, 1 that, under it, the same unforeseen events might £ have befallen us in the midst of a war, and taken 1 from us, at the moment when most wanted, the 1 use of those very means which were treasured up 1 to promote the national wrllarc and guard our • national tights 1 To such embarrassments 1 and to such dangers will this Government be > always exposed, whilst it lakes the moneys ' raised for, and n es-isary to, the puqlio ser- I vice, out of the hands of its own officers, and < converts them Into a mere right of action agairist 1 corporations entrusted witli the possession of 1 them. Nor can such results he effectually 1 guarded against in such a system, without hives- 1 ting the Executive with a control over the banks l I themselves, whether State or National, that | 1 might with reason be objected to. Ours is, pro- : bably, the only Government in the world that is liable, in the management of its fiscal concerns, to occurrences like these. But this imminent risk is not the only dange: attenffnal on the snr- 1 render of the public money to the custody and control of local corporations. Though the ob ject is aid to tbe Treasury, Us effect may lie to in- 1 troduce into the operations of the Government, (influences tlie most subtle, founded on interests he most selfish. Tbe use by the banks, for their own benefit, of 1 the money deposited with them, has received the 1 sanction of the Govern ment from the commence ment of this connection. The money received i from the people, instead of l*eing kept till it is i needed for theft use, is, in consequence of this au- 1 thority, a fund,on which discounts are nude for I the profit of those who happen to be owners of I i stock in the banks selected as depositories The ’ supposed and often exsggs.*s..'*-J -i&'s; sges of Bjoii 5 hr-** - il* '■i'.’.' a'S csnf.e :to lie & ignt for . with avidity. I nil) not stop lo consider on whom the patronage incident lo it, is to he conferred; whether the selection and control he trusted to Congress or to the Executive, cither will ho sub jected lo appeals made in every form which the sagacity of interest can suggest. The hunks, under such a system, are stimulated lo make the most of their fortunate acquisition; the depositee arc treated as an increase of capital; loans arm circulation are rashly augmented, and, when the public exigencies require a return, it is attended with embarraassinenis not provided for, ho? fore seen. Thus hanliuhat thought themselves hnwi fortunate when the public funds.worn received, • n, 1 themselves most embarrassed when the sea j con ol payment suddenly arrives. Unfortunately, too, the evils of the system ate nit limited to the hunks. It stimulates u general rashness of enterprise, and aggravates the fluctua tions of commerce and the currency. This result was strikingly exhibited during the operations of the late deposite system; and especially in the purchases of pubic lands. The ordhr which ul Innately directed the payment of gold and silver in such purchases, greatly checked, hut could not altogether prevent, the evil. Specie was indeed more dillicuit to bo procured than the notes which the hanks could themselves create at pleasure; but still, being obtained from them as a loan, and re turned as a deposite, which they were again at liberty lo use, it only passed round the circle with diminished This Operation could not have been had the funds of the Go vernment gone Treasury, lo be rogu'arly disbursed, and not into hanks, to bo loaned out for their own profit, while they were permitted to siihsliiuln for it a credit in account. In expressing these sentiments, 1 desire not lo undervalue (he benefits of o salutary credit to any hrttritli efenterprise. The credit bestowed on probity and industry is the just reward of me rit, and an honoralm- incentive to tiulher acqui sition. None oppose it who love theft country and understand its welfare. Hut when it is un duly encouraged—when it is made to inflame tho public mind with the temptations of sudden ami unsubstantial wealth—when it turns indus try into paths that load sooner or inter to disap pointment and distress—it becomes liable lo cen sure, and needs correction. Ear from helping probity anj ifiuUslry, tho ruin to which it leads tails most severely on the groat laboring classes, whoarcllnown suddenly out ofemployment, and by the failure of magnificent schemes never in tended lo enrich them, are deprived in a moment of their only resource. Abuses of credit and ex- 1 cesses in speculation will happen in despite of the must salutary laws ; no Government perhaps can altogether prevent them; but surely every Government can ro 'rnin from con ributing the 1 stimulus that calls them into life- Since, therefore, experience has shown, dial to lend the public money lo the local banks, is i hazardous to tho operations of the Government, ' at least of doubtful benefit to the institutions ' themselves; and productive of disastrous de rangement in the business and currency of the country, is it the part of wisdom again lo renew the connection ? It is true that such an agency is in nniiy ro spools convenient to tho Treusurp, hut it is no indispeniable. A limitation of the expenses of the Government to its actual wants, and of tho i revenue to those expenses, with convenient | means fur it prompt application to the purposes i for which it was raised, are tho objects which wo i should seek to accomplish, 'file collection, safe keeping, transfer and disbursement of the public money, can, it is believed, be well managed by olftcers of the Government, its collection, and, to u great extent, its disbursement also, have in deed been hitherto conducted solely by them ; neither National nor •’Stale flanks when employ ed, being required lo do more Ilian keep it solely while in their cusloily, and transfer and pay it in such portion at such times us the Treasury shall direct, Wuruly banks ore not more, able than the Go vernment to secure the money in their possession against accident, violence, or fraud. The asser tion that they arc so, must assume lii.it « vault in a bank is stronger than a vault in the Treasury ; i and that directors, cashiers, and clerks, nol select- i cd by the Government, nor under ils control, are I more worthy of confidence than officers selected , from the people and responsible to tho Govern- i mcnl; officers bound by oificial oaths and bands 1 for a faithful | eiformanee of their duties, and constantly subject to the supervision of Congress. Tlie difficulties of transfer, and the aid hereto fore rendered by bonks, have been less than is u sunlly supposed. The actual accounts show that by far the larger portion of payment is made within short or convenient distances from tho places of collection; and tho whole number of warrants issued at the Tieasury in the year 1831 —a year, tho results of which will, it is believed, afford a safe test for the future—fell short of five , thousand,.or nn average ol less Ilian one daily for each' State; in the city of New York they did I not averago more than two a day, and at the city , Os Washington only four, , The dilficullics herelbTdre cxistiiifi Are, moreo ver, daily lessened l>y an increase in the cheap ness and facility of communication ; and it may bo asserted witli confidence, that the necessary transfers, as well as the safe-keeping and disburse ments of the public moneys, can be with safety and convenience accomplished through the agon- | cy of Treasury officers. This opinion lias been , in some degree, confirmed by actual experience , since the discontinuance of the banks as fiscal a- , gents, in May lasi ; a period, which, from the cm barr i,.;m ills in comtneicial intercourse, present ed obstacles ms great as any that may be hereafter apprehended. The manner of keeping the public money since that period, is fully slated in the report of tho Secretary of the Treasury. That officer also suggests the propriety of assigning, hy law, cer tain additional duties to existing establishments ami officers, which, with the modifications and safeguards referred lo hy him, will, he thinks ena ble the Department to continue to perform this branch qf the public service, without any materi al addition either lo I heir number or to the pres ent expense. Tile extent of the business to be transacted lias already been staled ; and in res pect to tlie amount of money with which the offi cers employed would he entrusted at any one time, it appears that, assuming a balance of five millions to be at all limes kej t in llio Treasury, and the whole of it left in the hands of the collec tors and receivers, the propotliott of each would not exceed an average of thirty thousand dollars ; hut that, deducting one million for the use of the mint, and assuming the remaining four millions to he in the hands of one-half of the present num ber of officer*—a suppositldri dt'omcd more likely to correspond with the fact—the rum in the hands of each would still he less than tho amount of most of the bonus now taken from thp receiv ers of public money. Every apprehension, how ever, on the subject, either in respect to the safely of the money, or the faithful dis barge ol these fiscal transactions, may, it appears to rnc, lie ef fectually removed by adding to tho present uiemp of the Treasury, the establishment uy law, at a few important points, of offices for the deposite and disbursement of such portions of the public revenue as cannot, with obvious safety and con- ! vcnience, be left in tlie possession of tlie collecting 1 officers until paid over by them to the public cfcJ- j itors. Neither tlie amounts retained in their J hands, nor those deposited in tlie offices, would.' in an ordinary condition of the revenue, be larger iq mo,t cases than those o ten under the control of disbursing olficers of the Army and Navy; and might be made entirely safe, by requiring such sc curilios, and excrci drig such controlling supnrvi sion, as Congress may by law proscribe, Tho principal officers whnraap, ointments would be come necessary under this plan, taking the largest number suggested by tho Secretary of the Treas ury, would not exceed ten ; nor the additional ex penses, at the same estimate, sixty thousand dob I >re a year. The-e can be noddnb* of the "W .ra tten of those. ■Vito are entrusted with tire affaire rf-Government,' .o cbftdtf* 'item •With as iitue cy i.o hr- • '* i* consistent tfiih the public interest; and it it > .. Go "ff r f”. and ultimately for the people, to de cide whether the benefits (6 be derived f ru m kerp . Ins our liscnl concerns apart, and severina illo connection which has hitherto existed between I the government and banks, offer sufficient «V vantages to justify tlie necessary expenses. If i c object to bo accomplished is deemed important lo Uic future welfare of tho country I cannot allow myself to believe that tlie addition to the public expenditure of comparatively so small an amount as will he necessary to otibcl it, will be obieclsd id by (be people. fl Will be seen by the repor,’ of the Postmaster Genciul, herewith communicated, that the fiscal allairs of that Department have been successfully C'Uc uclcd since May last upon the nrimyptn of dealing only in the l<- s i| currency /St tlfe United i.ales, nn, l |fi at <t needs no legislation to main-’ turn its credit, and facilitate the management rs its concerns; the exisiing laws being, in the opin lon ol ihut efficrr, ample for those objects. Difficulties will doubtless be encountered for a season, and increased services renuired from lbs public functii naries; auch arc usually incident lo the commencement 0 f every system, but they will be greatly lessened in Hie progress of its ope rations. r I he power and influence supposed to connec ted witli the custody and disbursement of the Pi'l'l 0 money, are topics on which the public mind is naturally, Andyciilh great propriety, peculiarly sensitive. Much has been said on [them in rele." rence lo tlie proposed separation of the Govern ment from tlie banking institutiors; and surely no one can object to any appeals or animadver sions on Ihe subject, which are consi-tent with facts, and evince a proper respect for the intelli gence ul the p ople, It a chief Magistrate mayi be allowed lo speak for himself, on such a point,' 1 can truly say, that lo mo me nothing would be more acceptable, than (lie withdrawal from the Executive, to the greatest practicable extent, of all concern in the custody and tli .bursement of Hie public revenue; nol that 1 would shrink from any responsibility cast upon me by the duties of my office, but because it is my firm belief, that tUi capacity for usefulness is in no degree promoted by tho possession of any patronage not actually necesssay to tho performance of those dutic .' Hut under our present form of Government, the interve ition of Executive officers in the custody and disbursement of Hie public money seems to be unavoidable and before it can lie admitted Hint the influence and power of the Executive would be ii.crea cd by dispensing with the agency of hanks, the nature of that intervention in such an agency must bo carefully regarded, and a compar ison must bo instituted between its extent in tlie two cases. The revenue can only lie collected by officers appointed by Hie President, with the advice and connenl ol ihe Senate. The public moneys, in Hie first instance, mutt, therefore, in all casus, pass through hands selected by the Executive.— Other officers appointed in tlm same way, or, as in some cases, by Hie President idone, must also be entrusted witli them when drawn (or the pur pose of disbursement, li is thus seen that, oven when banks are employed, the public funds must twice puss through the hands of executive offi cers. Besides this, (he he id of (he Treasury D - parlment, who also holds Ids office at the pleasure of the President, and some oilier officers of the sumo department, must necessarily bo invested with more or less power in the selection, contin ounce, and supervision, of the hunks that may lie employed. The question is then narrowej' lo tlie single point, whether, in the intermediate slago between the collection and disbursement of the public money, the agency of banks is neces sury to avoid a dangerous extension of Hie patro nage dud influence of the Executi e? But is it elcsi Hint Hiu connection of the Executive with powerful moneyed institutions, capable of minis taring to Hie interest* of men in points where they arc most aceossulilc to corruption, is le-s liable to abuse than Ills constitutional agency in Hie ap pointment and control of the few public officers required by the proposed plan? Will tho public money, when in iheir hands, bo necessarily expo sed to any improper interference on the part oi llio Executive'! May it not ho hoped that a pru dent fear of public jealousy and disapprobation,!!! a matter so peculiarly exposed to them, will deter him item any shell interference, oven if higher motives bo found inoperative? May nol Congress so regulate, by law, the duty of thore officers, and subject it lo such supervision and publicity, ns to prevent Hie possibility of any serious abuse on Hut part of Hie Executive? and is there equal room for such supervision and publicity in a conncciion with hunks, acting under Hie shield of corporate immunities, and conducted by persons irresponsi ble to tho government and Hie people? It is be lieved (Itat a considerate and candid investigation of these questions will result in the conviction, that llio proposed plan is fur less liable to olrjec. lion, on Hie score of Executive patronage and control, than any bank agency that has been, or can bo, devised. With these views', I leave to Congress the mea sures necessary to regulate, in the present emery gency, Hir safe-keeping and transfer of the publis moneys. In the pcrlortnaneo of constitutional duly, I have staled to them, without reserve, the jyrsult of my own reflections. The subject is of great importance; and one on which we can scarcely expect to bo as united in sentiment ns we are in interest, it deserves a full and free dis trust lon, and cannot fall lo be henefittrd by a dis passionate comparison of opinions. Well awnro myself of the duty of reciprocal concession among the co-ordinate branches of the Government, 1 ran promise reasonable spirit of co-operation, so far as it can bo indulged in without the surrender of constitutional objections, which 1 liclicve lo Ini well founded. Any system that may lie adopted should He subjected lo tiro fullest legal provision, so us to leave nothing In the Executive but wlnit is necessary lo the discharge of the duties imposed on him: mid whatever plan may be ultimately established, my own part shall be so discharged us to give lo it a (air trial, und the best prospect of success. The character of die funds to be received and disbursed in lire transact ions of the Government, f kewiso demands your most careful consideration. There car, be no doubt that those o ho framed and adopted the Constitution, having in immedi ate view the depreciated paper of the Gonfidenry —of which five hundred iollars in paper were, at limes, only equal to one dollar in coin—irilcu ded to prevent the rccuircnce of similar evils, so far at least as related lo the transactions of tho new Government. They gave to Congress ex press powsis to coin money, and to regulate Hie value thereof, and of foreign coin; they refused to gve it power to establish eor|»orulions —tlie agents, then as now, chiefly employed lo create a paper currency; they prohibited lire States from making any thing but gold and silver a legal ten der in payment of debts; and tlie first Congress diverted, by positive law, that the revenue should be receded in nothing but gold and silver Public exigency at the. outset of the Govern ment. without direct legislative authority, led to the use of hanks ns li-vat aids to the Treasury. In admitted deviation fiorrj Hie law, al the same period, and under the same exigency, \hc Secre-ag lary of the Treasury received Iheir riiout of Julies. The sole ground on wnfcli tho I practice, thus commenced, was then, or has' ? since, been justified, is lire certain, immediate, und convenient exchange of such notes for specie. The Government did indeed receive Hie incon vertible notes ot Stale banks during the difficul ties of war; and the community submitted with out a murmur to the unequal taxation and multi plied evils of which such a course was productive: With Ho* war. this indulgence ceased, and .the banks wore obliged again to redeem their antes in gold and silver, 'lire Treasury, in accordance with previous practice, continued lo dispense wi'h the currency required by the set of 178!f, and took tho notes of banks'll: ftp! r • J t .• : > pt'd fit spun - ■ I ■ ’ - ore;.. i.o gnaw? sligUffc.* viojv/oii of »*t»tfit* ! ni &<■ fnr