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tb&Hiand dollars of what was huteloloro re- | ported by the Department as not effective. j Os former appropriations it is estimated that ; there will remain unexpended at the close of the year, eight millions two thousand nine hundred and twenty five dollars, and that of (his sum there will not be required more than five millions one hundred and forty one thou sand nine hundred and sixty four dollars, to accomplish the objects of all the current ap propriations. Thus it appears that alter sa. tisfying all these appropriations, and after dis charging the last item of our public debt winch be dontTon lhe first of January next, there will remain unexpended in the Treasury an effective balance of about four hundred and forty thousand dollars. That such should be the aspect of our finances is highly flattering to the industry and enterprise of oar popula tion. and auspicious of the wealth and pros peiity which await the future cultivation of thetr growing resources. It is not deemed prudent, however, to recommend any change for the present in our impost rates, the effect ofthe gradual reduction now in progress in many of them, not being sufficiency tested, to guide us in determining the piecise amount of revenue which they will produce. Free from public debt, at peace with all the world, and with no complicated interests to consult in our intercourse with foreign powers the present may be hailed as that epoch tn our history the most favorable for the settlement of those principles in our domestic policy, which shall be best calculated to give stability to our Republic and secure the uiessings ol freedom to our citizens. Among these prin ciples, from our past experience, ii cannot be doubted, that simplicity in he character ulthe Federal Government, ai d a rigid economy m its administration, should be tegrded as fun damental and sacred. All must be sensible that the existence ofthe public debt, oy ren dering taxation necessary for us extinguish m®nt, has increased the difficulties which are inseparable from every exercise of the tax ng power; and that it was, in this respect, a re mote agent in producing these disturbing qu< s lions which grew out of the discussions relt-a ing te the tariff. If such has been the tendency of a debt in curred in the acquisition and maintenance ot vur national rights and liberties, the obliga tions es which all portions of llie-Unien cheer fully acknow lodged, it must be obvious, that whatever is calculated to increase the burdens of Government without necessity, must be fa tal to all our hopes of preserving its true cha racter. While we are felicitating ourselves therefore, upon the extinguish nem of the na tional debt, and the prosperous state of oui finances, let us not be tempted to depart from those sound maxims of public policy, which enjoin a just adaptation ofthe revenue to the expenditures that are consistent with a rigid economy, and an enure abstinence from ail topics of legislation that are not clearly wiibiu the constitutional powers ofthe Governinem, and suggested by the wants of tue country. Proparly regarded, under such a policy, every dimunition ofthe public burdens ana ng from tax ition, gives to individual enterprise, increa- ( sed power, and furnishes io alt the members of our happy Confederacy, new mo.ivus for patriotic affection and support. But above ail, its most important effect will be found in its influence upon the character of the Govarn nient, by confining its action to those objects wnich will be snre to sceure io it the attach meet and support of our fellow citizens. Cimcumstances make it my duty to call the attention ol Congress to the Bank of the U. States. Created for the convenience ot the! Government, that institution has become the scourge ofthe people. Its inierlernnce to postpone the puj meal of a portion of the na tional debt, that it might retain the public mo ney appropriated for (hat purpose, to strength en it m a political contest —the extraordinary extension and contraction of its accommoda tions to the community —its corrupt and par tizan loans —its exclusion of the public direc tor*, tiorn a knowledge of ns most important proceedings—the unlimited authority confer red on the President to expend its funds in hiring writers, and procuring the execution of priming, and the use made of that authority; | the letenlion ofthe pension money and books after the selection ot new agents —the ground- ‘ h-ss cl um to heavy damages, in consequence ot the piotcst ofthe bill drawn on the breach government, have through various channels, been laid before Congress. Immediately alter the o;o of the hst session, the bank through its rh e-idem announced ns ability and readi ness to abandon the system of uoparaiirited curtailment, and die interruption o! domestic exchanges, which it had practised upon liom the lit ol August, 1833, io die 30lh June, 1834, and io extend ns aceommoda.iuQ to the community. The gruun is a -a.i.vU in this annunciatimi, amoun eu to an acKno*lodge ment that the curtailment, i.< he extent to which it had been carrn d, wis not n» cessary to the safety ot the Bank, and bad been per sisted in merely i« induce Congress io gram the prayer ot the Bank in its memorial relative to the removal of ttjv deposues, and to give it a new charter. I hey were substantially a confession that al> the real distresses which individuals and tbe country had endured tor the proceeding eix or right months, Had been nt-vdlesslj piu rl”*ed by it, with the view ot affecting, through tho suffering of the people, ine leg.a.a ive uc lu n ol Congress it is a subject ul cungtuu.a (ion, that C ongress aud lhe country had die a rtuv and the firmness i<* bear me affliction : that the energies of our people soon lound re -1 el from this wontou Branuy, in va», unpor isiiuiis ot tne precious metals, from almost ove<y part ot the world; and that ad me close ol tins tremendous ufluit o coutrol our Gov eriinietit, iue Bai.k lound ilsvli powei ess, ana no mnger able io loan vu-. us surplus mean. 1 lie community bad learned to manaege ns al tun t> without its assistance, ana >rade uad al teedy feunonew auxd iar e<; so that on tne first <jl October lasi, lue extraordinary spec tacle was presented of a National Bank, mere than one half of whfcse capital was cither lying unproductive in its vaults, or in the hands of foreign bankers. To the needloss distresses brought on the country during the l ist session of Congress, has since been added tbe open seizure of the dividend.- 1 on the public stock, to the amount of one hundred and seventy thousand and forty one dollars, under pretence of paying dama ges, cost and interest, upon the protested French bill. This sum constituted a portion of the estimated revenues l<»r die year 1824, upon which the appropriations made by Con gress were based- It would as soon h ive been expected that our collectors would seize on the customs or receivers of our land offices on the moneys arising Loin the sale of public lands, tinder pretences of claims against the United Stales, as that the Bank would have | retained the dividends. Indeed, if the prin . ciple be established that any one that may > choose to set up a claim against the Lotted I States, may, without authority of la v, seize upon the public property o money wherever he can find it, ta pay the claim, there will re main no assurance that our revenue will reach the Treasury, or that it will be applied after ■ the appropriation to the purposes designated m the law. The paymasters of our army, and the pursers of our navy may, under like pre i tenses, apply their own use moneys appropria } led to set in motion lhe public force, and in lime of war leave the country without defence. , This measure resorted to by tne bank is diswr- 1 j ganizmg and revolutionary, and it generally , resorted to by private citizens in like cases, ) would fill lhe land with anareny and violenc.e It is a constitutional provision, that ‘‘no money shall be drawn from tbe Treasury but in consequence of appropria ions made by law.” The palpable object ol tins provision is to prevent the expenditure of the public money, for any purpose whatsoever, which shall not have been first approved by the Rep resentatives • ! the People and lhe Stales in Congress assembled, it vests the pow rof declaring for wiiat purposes me public m ey ' shall be expended, in the Legislative Depart m*nt of the Government, to the exclusion of lhe Executive and Judicial, and it is not within the constitutional authority of cither ol those ! Departments, to pay it away without law, or to sanction its payment. According to this plain constitutional pr vision tbe claim wl ..;e Bank can never be pad without an appropria tion by act of Congress. But tne Bank has never asked for an appropriation, it attempts to defeat the provision ofthe Coiisututieu, and obtain payment without an act ot Congress Instead of awaiting an appropriation passed uy both Houses, and approved o me PresiJmii, it makes an appropriation tor itself rand invites an appeal to me Judiciary to sanction it.— That the money had not technically been paid into the Treasury, does not aflect me principle intended to be established by the constitution. The Executive and Judiciary have as ti de right io appropriate and expend the public noney wimeui authority, ol law, beioro it is placed m lhe credit *4 ho freasurer, .is to take it Iroin the treasury, in t.; - annual re port of me Secretary oi the 1 reasury, ami his correspodence with me President of me Bank, and the opinion of tha Attorney . onerii ac companying it, you will find a further examina tion of the claims of me Buna, and lhe course it has pursued. It ssenis duo to mo safety of the public funds remaining in that Bank, and to the hon or of the American People* tiiat measures be taken to seperate (he Government entirely from an institution so mischievous io me pub lic prosperity, and so regardless ol me Con stitution and laws. By transferring the public depesites by appointing other Pension Agems, as far as it had the power, by ordering the discontin ianco of tho receipt ot Bank checks m payment of the public dues alter the first of January next, lhe Executive has exerted all ns lawful aui-i uttv > sever me connexion be tween me Government and tins iaithiess cor poral.on. The high handed career oi mis insulation imposes upon mo cons ituimn »i functionaries oi this government, dunes ui inc gravest and i must imperative eharavter —dunes which they , cannot avoid, and from which 1 trust iheiu will be no inclination on the pul otany ol them to sbrsnk. My own sense oi them is most clear, as is also my reauiuess to dis charge those which may ngtiiluiiy tali on me. To ion e any business itlations widi the BaiiK ot the Uml< d btates mat may ba avoided without a violation oi mu nanonai faun, a tlei aal institution has set at open ueh nice me co u ceded ugni fti me govennnuiH m cxamiuu its ailaiis; aitei n has Uane all m its power io de cide lie public aumo.ity hi oilier respects, and !• brmg H mm uisr pa e at Dome and abroad; aiiei it uas attempted to defeat Hie clearly ex piessod will of the people by turning against mein the immense power mous ' d m iu na©d->, and by involving it country umerwi»e peaceful, 11 mrisuiug and nappy, in dissension, emo »r --ras.iieiil and distress—Would inatve tne nation Hse|> a party lo me degradation, so sedulously j pi epared tor the public agents —and da much < io destroy me confidence ui mankind in popu lar governments, and to bring into cvniemp. me>r auumti'y aid eifici ncy 1.1 guarding against an evil ol such magnitude, constdera- j Hous of temporary uonvemence should be ibiuwn out oi the question, ana wj snould ue ’ influenced, bv su<.b motives «*nly .is look to me honor and preservation oi tin- icpuuiicim sys em. Deeply and soiemuly itnpressd with me justice oi these v tews, 1 ieci it to uu my duty io recommend to vuu mit a law De passed au thorizing me sale oi me public stucn; mat me provision ot me cnailer requiring me receip 1 •1 notes <♦! the Bank m payment oi puui.i ! dues, snail in accordance wnu me power ic served to Congress ie me 14. u section oi me ! charter, uu s speeded uaid rn« li.rnn. pays lu ■ tne t reasury me dividends wmitieid and u>> i lews connecting the Government tr its officers 1 with tlie Bai|{, directly or indirectly, bo re- i pealed; and hat the institution be leflhereaf- I ter to its own tsotircee and means. Events satisfied my mind, and 1 think ' the minds ti the American People, that (he ' mischief's aO Jangers which flow from a na tional Bank® overbalance all its advantages. The b<>ld eifi, the present Bank has made to couirol the (Government, tho distresses it has wantonly produced, the violence of which it has been the occasion in one of our cities famed for its observance of law and order, aie bu> premonitions of the fate which awaits the American people should they be deluded into a perpetuation of this institution, or rhe estab lishment of another like it. It is fervently hoped, that, (bus admonished, those who have heieiolbi'6 favored the establishment of a sub stitute for the present Bank, will be md iced to abandon i(, as it is evidently belter to incur | any nconvemence that may be reasonably I expected, than to concentrate the whole mo neyel power ofthe Republic in any form what sover, or under any restrictions. Happily it is already illustrated that the | agencx of such an institution is not necessary to the fiscal operations of the government. — j The State Banks are found Cully adequate to I tire performance of all services which were re quired of he B ink of the United States, quite ■ as piomptly, and with the same cheapness. — Tiioy nave maintained themselves and dis charged all these dunes, while the Bank of the United Slates was still powerful, and in the | field as an open enemy; and it is not posable o conceive that they will find greater difficul ties in their operanons, when that enemy shall cease to exist. The attention of Congress is e irnestly itivil-, !cd to the regulation of the deposites in lhe ita.e B inks, by law. Although lire power now exercised by the Execute Department in ,his behalf, is only such as was uniformity ax e rted through every Administration from the origin of the government up to lhe establish ment of the present B ink, yet it is one which is susceptible of regulation by law, and there fore, oiigiil so to be regulated. The power of Congress to d re t in wuat places he Treasur er hall keep tne moneys m the Treasmy and to impose restrictions upon the Execu tive authority, in relation to their custody and removal, is unlimited, and its exercise will rather be courted than discouraged by those public offi -cis and agents on whom resis lhe responsibility for iheir safety. It is desirable itiai as little power as possible should »o 101 l to me President or Secretary ofthe I'reasury over those institutions —which, being thus (r ed iioni Executive uifl ienee, and without com mon head to direct their operations, w.rnid neitin r nave lhe temptation nor the ability to mieriere in the political conflicts of the coun try. Not deriving their charters from the national authorities, they would never have those inducements o meddle in general elec n.ims, which have led the Bank of tne United St ites t<» agitate and convulse the country for upwards of two years. i rtie progress of our gold coinage is credita ble to die viTl et.s oi ttm mint, and premises io a stioii peuod to furnish the country with a i sound and portable currency, whicn will much , diminish me inconvenience to travellers eftiie ■ want of a general paper currency, should me St.i c Banks be incapable of furnishing it. — i These institutions have already shown them selves competent t<> purchase and furnish the domestic exchange tor the convenience el tiade, at reasonable rates, and not a doubt is 1 entertained thm, in a short period, all ttie wants of the country in bank accommodations and exchange, will bo supplied as promptly and cheaply as they have heretofore been by the ; Bank of the United States. If lire several , States shall be induced gradually to reform their banking systems, and prohibit the issue of small notes, we siv ill, in a lew years, have a currency as sound, snd as little liable to fluctuations, as any other commercial country. The report of the Secretary of War, to gether with the accompanying documents from the several bureaux of ibal Department, wilt ex übii the situation of the various objects ■ committed ions ndmims ration. i j\o evuni has ■ 'Courted since your last ses tsion rendering u jcsMiy any movements oi tne army, with me exception ot mo expedition ot the legiment oi dragoons into the territory ' of the wandering and pitdatory inbes, inhibit ing the western frontier and living adjacent io the Mexican boundary. 1 heso tubes have ' been hereto! >re known to us principally by toeir attacks uiion our own citizens and upon omer in nans entitled to the protection ol me Untied Stales, h became necessary lor the peace ol the frontiers io check these habitual inroads, and 1 am nappy to inform you mat the object has been eficciod without be com mission of any ad oi hostility. Col. Dodge arid the troops under his command, have act ed with equal firmness and humanity, and an arrangement his b- en made with loose In dians, whi h it is imped will assure their per manent pacific plauoiis with rhe Luitt” I Sta'es and the o'her tribes ot Indians uj on ' thai border. It is le be r« jjjeied that the pre \ valence ot sicku ss m that quarter has de prived the country of a number ol valuable lives, and pirticularlv that of (general Ueaveß woria, a i officer weii known and esteemed i©r ; his gallant service- in me lave war, and lor him sub->equoiii good conduct, h is laden a vivis i© ms z'lui and exertions in the disc aargi oi ■ ms duty. 1 nc army is in a high state ©I discipline. ' lis moral condition, so far as that is known n re, is good, and the various brandies ol the public service, are careiu’ly attended tu. it is amply sufficient, under me present organiza tion, tor providing the necessary garrisons fur ■ me se i bo ud and lor iht dcieuce ui the inter aal irontier, and also tor preserving the ele- | m nts of military knowledge, and tor keeping Ip ice with those improvements which modern experience is continually making. And these i objects appear to me te embrace all the legitt- f mate purposes for which a perm.incnt military i force should be maintained in our country. Ibe < lessons of history teach us its danger, and the : tendency which exists to increase. 1 his can i be best met and averted by a just caution on the part of the public itself, and of those who represent them in Congress. ' From the duties which devolve on the: Engineer Department, and upon the lepo-’j graphical Engineers, a different organization seems to be demanded by tho public interest, and 1 reccommend the subject to your consi deration. . No important change has, during this sea son taken place io the condition ol the Indi ans. Arrangements are in progress for the removal ofthe Creeks, sad will soon be for the removal of the Seminoles. I regret that lhe Cherokees east of the Mississippi have I not vet determined, us a community, to re ! move. How long the personal causes wbicn | have heretofore retarded that ultimately inevt <able measure, will continue to operate, i am unable to conjecture. It is certain, however, that delay will tiring witn H accumulated evils ! which will render their condition more and i more unpleasant. The experience of every ' year adds to the conviction, that emigration, ! and that alone, can preserve from destruction the remnant of tribes yet living among us.— Tne facility with which the necessaries ol life are procured, and the treaty stipulations pio vidtng and for the emigrant Indians tn their a gricultural pursuits, and m the important con cern of education, and their removal Irom those causes which have heretofore depressed all I and destroyed many ot the tribes, cauuot fall . to simulate their exertions and to reward their I industry. The" two laws passed at the last session o Congress on the subject oi Indian afiairsj have been carried into effect, and detailed in structions for their administration have been given. It will be seen by the estimates lor i the present session, that a great reduction will lake place IU the expenditures of the dep a t ment in consequence of those laws. Anti mere is reason to believe that their operation will be salutary, and that the colontzauon of lite Indians ou the western frontier, together j witli a judicious system of administration, will ■ still i irther reduce the expenses of tms branch 1 of the public service, and at lhe same tune 11 jrj nute its usefulness and efii uency. ' i Circumstances nave been recently develop ed sir.wiug lie existence of extensive frauds uudei tne various laws granting pensions and gruuitieo for Revolutionary services. Il is mipossiblc to estimate the amount winch in iy have been thus irandulemly obtain, d from ihe | national treasury. 1 am satisfied, however, i it lias been such as to justify a re-axammution ! of the system, and the adoption of the necessa ry checks in iis administration. All will ' agree, tha; tim services and sufferings «f the 1 remnant of the levolutiouary band, should be fully compensated. But while tins is done,- every proper precaution should bo laktm to i prevent the admission of fabricated and I fraudulent claims. In the present mode of ' proceeding, the attestations and certificates of judicial officers ol tho various Slates, firm a considerable portion ol ilie checks which are in erposed against commission ol Irauds.— These, however, have been, and may be fa bricated and in such away as to elude detec lion at the examining offices. And independ enilyofthts piacltcal difficuliy, it is nscenain- ! ed that these documents are often loosely granted; sometimes, even blank certificates have been issued, sometimes prepared papers have been signed without inquiry, and, in one instance at least, I tie seal of the court bus been within reach of a person most interested in its improper application. It ta obvious, that, under socti circumstances, no severity of ud inmistiation can check the abuse ol ttie law, 1 and information has, from time to tune, been communicated to the Pension Office, question ing or denying the right of persons placed up on’lhe pension last, "o the bounty ol tho coun try- — But a far more general investigauon is called lor. An-1 I therefore recceinmend, in conformity with lhe suggestion of me Secreta ry of War, that an actual inspection siiould oe made, tn each State, into the circumstances ! and claims of every person now drawing a ’ pension. The honest veteran has nothing to fear from such a scrutiny while ihe fraudulent claimant will bo detected, and the public trea sury relieved, loan am-mm, 1 Have reason to believe, far ureater man has nereiolore been 1 suspected. The details of such a plan, could be so regulated as to interpose the necessary checks, without any burlliensoiiie operation : upon the pensioners. The object shonldeb two fold- 1. To ».ok inte the original justice of the claim 1, of ihs c; ii be done under a pro si ». ms, uy an examination' » n -elves, by inquHing, , , , f reaiueuc , mto their ms- v miun ente.'taiiiw'i of their , . J’ cases, whe- uvr'he l or , u, . i.g and mis by actu i ' pc> I j j , i, ta - epted, to Mroduc- | l|V , t . .. .■> .c ulta, and 1 there-} tu." cc< i.. -. ’• yt '«• consideration, j with t< -r’- ’ ‘ im*; all payments; should be pc necessary reports arc ret ” . -u. ■ v, dl ' by a tabular statement anex- jcd to the documents transmitted to Congress, that ihe appropriations tor objects connected ’with the \Var Department, made at ihe last session, tor the service ol tne year 1834, ex cluding tbe permanent appropriation lor the payment of military gratuities under the act of , i June 7, 1832, me appropriation of two hun dred tnousand dollars for arming and equip ping me inilma, and the appropriation of ten ’ thousand dollars for the civilization ofthe In* ; dians, which are not annually renewed. i amounted to tbe sum of ume millions three i thou’-md two hundred aad aixty-onc dollars, and that the estimates of appropriations necs sary for the same branches of service year 1835, amount to the sum of five milnois | seven hundred and seventy-eight thousand F nine hundred and sixty-four dollars, makingajf difference in the appropriations «f lhe current i*- year over the estimates of appropriations for the next, of three millions two ninety-seven dollars. W* The principal causes which have operated at this lune to produce thisgreatdifference, are shown tn tho reports and documents, and in the detailed estimates. Some of these causes are permanent, and, aided by’ajust course of administration, may continue to operate btgn. ficially upon the public expeditures. A just economy, expending where the pub. lie service requires, and withholding where it > does not, is among the most indispensable du* ties of the government. I refer you to the accompanying report off 'S the Secretary of the Navy, and to the docu. ments which it, for a full view of the operation that important branch of our service, during the present year. It will be seen that the wig. dnm and liberality with which Congress have provided for the grandual increase of our navy material, have been seconded by a ing Zeal and fidelity on the part of those to whom has been confided the execution of laws on the subject, and that but a short period would be n>w required to put in commission <— a force large enough for any exigency igf t) which the country may be thrown. When wo reflect upon our position in rela- tion to other nations, it must be apparent, that in the event of conflicts with them, we mu|* 4 look chiefly te our navy for lhe protection of our national rights. The wide seas which s p irate us from oth- r governments, must of necessity be the theatre on which an enemy will aim to assail us, and unless we are pij. pared to mcei him on this element, we canuh be said t» possess the power requisite to repel or prevent aggression. We cannot, therefore, watch with too much attention this arm of out defence, or cherish with too much care the means by which it can possess the necessare efficiency and extension. To this end our policy has been heretofore wisely directed to 1 the constant employment of a force suKcient ( to guard our commerce, and to the rapid accu mulation ofthe materials, which are necossary ’ to repair our vessels, and construct with ease such new ones us in iy be required in a state of war. z In accordance with this policy, I recom mend to your consideration the erection of ti?a additional Dry D ock described by the .Secre tary ofthe Navy, and also the construction Steam Batteries to which he was referred, for ihe purpose of testing their efficiency as , diaries to the system of defence now in use. The report ofthe Pest master General here- ' ' with submiticd, exhibits the condition and prospects of that Department. From (bat document it appe irs that there was a deficit irt , tho funds ofthe Department, at the commence • ment of the present year, beyond its available moans, of three hundred and fifteen thousand live hundred and ninety nine dollars and nine-' ’ ty eight cents, which on the first of July last had been reduced to two hundred and sixty eight thousand ninety two dollars and seventy ty four cents. It appears, also, that the reve nues for the coming year will exceed tho ex penditures about two hundred and seventy thousand dollars, which, with the excess of revenue which will result from the operations of the current half year, may he expected, in dependently of any increase in the gross amount of postages, to supply lhe entire doficiA before the end 011535. But us this calcula tion is based on the gress amount of postages which hud occurred within the period embra ced by the times of striking the balances, it is obvious that without a progressive increase m . the amount of postages, the existing retrench-" - ments most be persevered in through »Im» y«x»r matJ, that the Department may accumulate a surplus fund sufficient to place it in a condition of perfect ease. It will be observed that the revenues of tho Post Office Department, though they have increased, and their amount is abeve that of any former year, have yet fallen short of th» estimates more than a hundred thousand dol lars. This is attributed in a great degree to the increase of free loiters growing out of the extension and abuse of lhe franking privilege. - There has been a gradual increase in the num tier of executive offices to which it has been granted; and by an act passed in March, 1833, il was extended to members of Congress throughout the whole year. It is believed that a revision ofthe laws relative to the franking ? privilege, with some enactments to more rigidly, the restiiclions under which it is granted, would operate beneficially to tho country, by enabling ihe department at an earlier period to restore the mail facilities that have been withdrawn, and to extend them more widely as the growing settlements of the coun try may require. To a measure so important to tho Govern ment, and so just to our constituents who ask no exclusive privileges for themselves, and are * not willing to concede them to others, I ear ncs ’v recommend lhe serious attention of Con gress. The iinpur ance of the Post Office Depart ment, and tie magnitude to which il has grown, both in its revenues and its epc,rations, seem to demand ns organization by law. The whole of its receipts and disbursements have hitherto been left entirely to Executive con trol, and individual discretion. The principle is as sound in relation to this as to any other Department of the Government, that as littlo discretion should bo confided to the Execu tive officer who conirols it, as is compatible with its efficiency. It is therefore earnestly recommended that it be organized with an au ditor and Treasurer of i>s own, appointed by ihe President and Senate, who shall be bran ches of the Treasury Department.