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Tol. IV. for it to proceed until the opening of the next spring. In the month of October l ist, the accompany ing communication was received from the gov ernor of the temporary government of Oregon, giving information of the continuance of the In dian disturbances, ami of the destitution and de fenceless condition of the inhabitants. Orders were immediately transmitted to the commander of our squadron in the Pacific, to despatch to their assistance a part of the nival forces on that sta tion, to furnish them with arms and ammunition, and to continue to give them such aid and protec tion as the navy-could afford, until the army could reach the country. • It is the policy of humanity, and one which’ Bas always been pursued by the United States, to cul tivate the good will of the aboriginal tribes of this continent, and to restrain them froipjmaking war, and indulging in excesses, by mi-id means, rather than by force. That this could have been been done with the tribes in Oregon, had that Ter ritory been hrongTft under the government of our laws at an earlier period, and hid suitable meas ures been adopted by Congress, such as now ex ist in our intercourse with oth *r Indian tribes within our limits, can not lie doubted. Indeed, the immediate, and only c-uise of the existing hos tility of the Indians of Oregon is represented to ha ve been, the long delay of the United States in making to them some trifling compensation, in witch articles as they wanted, fertile country now occupied by our emigrants, which the Indians claimed, and over which they formerly roamed.— This compensation lndVen promised to them by the temporary government established in Oregon, but its fullihnont had been |mMponed from time to time, for nearly two years, whilst those who made it had boon anxiously waiting for Congress to es tablish a territorial government >v *r tiio country. The Indians became at length distrustful of their good faith, and sought redress by plunder and massacre, which finally led to the present difficul ties. A few thousand dollars in suitabl • presents, as a compensation for the country which hud been tit ken possession of by our citizens, wotd I have satisfied the Indians, and have prevented the war. A small amount properly distributed, it is confi dently believed, would soon restore quiet. In this Indian war our of Oregon have liven compelled to take tin* field in their own de fence, have jierlomteil valuable military services, and been subjected to experts* > which have la!l**n heavily upon them. Justice demands that pro vision should be mail • by (’migress to com ionsato them for their services, aiid Jo ref nnd in hen the necessary expenses which they have inn rre 1. ! repeat tin* recommendation heretofore m ule to Con gress. that provision I><* made lor the appointment of a suitable number of In Item agents to re vide among the trifios of Oregon. and tint asm ill sum lie appropriated to enable these agents to • titivate friendly relations with them. If this be done, the presence ol a small military force will be all that irf necessary to keep them in check, and preserve pence. 1 recommend that similar prvisi-m b • made as regards flu? trilies inhabiting northern Texas. New .Mcxiro, (’all* fornia, and'the extensive region lying between onr set tlement* ii tln-ff por-evsion*. as the mmst elireiiv c n0*:".75 •ri—fTe-'i . , -it .. <r and within tbc recently acquired territories. TIt1: A <1 ’ It Kr’s It 12 rOIt T. The Secretary <>f the Treasury will present in his an nual report a highly satisfactory statement of the condi tion of the finances*. ‘J’lie imports for the fiscal year ending on the. thirtieth of June last were of the value of one blind red and fifty four million nine hand red and seven* y-seven thousand eight hundred and seventy-six dollars : of which the amount exported was twenty one. million one hundred and twenty-eight thousan 1 an I ten dollars, leaving one hundred and thirty-three million eight hundred and forty-nine ihon.-and eight him lie I and sixty-dx dollars jn the country for domestic u jc. The value of the exports for the same p riod was one hundred and fifty-four million thirty-two thousand one hundred and thirty-one dollars, cousisting of domestic productions amounting to one hundred anil thirty-two million nine hundred and four thou :m I one hundred and twenty-one dollars, and t weir y.on • millionone linn ilreil and twenty-eight thousand and l-ri dollars of for eign articles. The receipts into the treasury f*r the same period, ex clusive of loans, amounted to thirty-five million tour hundred and lliiriv-m ihou-and seven hundred and fifty dollars and fifty-nine cetm : of which there was derived from customs thirty-one million seven hundred and fiftv aeven thousand and seventy dollars and ninety-six cents; from sales of public lands, tim e million three hundred ami twenty-eight thousand six hundred and forty-two dollars and fifty-six cent? ; and fro;a miscellaneous an I incidental source.-*, three hundred and fifty-one thousand and thirty-seven dollars and seven cents. It will Ik* perceived that tin* revenue from customs for the last fiscal year exceeded by seven hundred and fifty seven thousand and seventy dollars and ninety-six conn* the estimate of the Secretary of the Treasury in his last annual report; and that the aggregate receipts during the same period from customs, lauds, and miscellaneous sources, also exceeded the estimate by the sum of five hundred and thirty-six thousand seven hundred and fifty dollars and fifty-nine cents—indicating, however, a very near approach in the estimate to the actual result. The expenditure during the fiscal year en ling on the thirtieth of June last, including those. lor the war, and exclusive of payments of principal and interest for the public debt, were forty-two million eight hundred and eleven thousand nine hundred and seventy dollars and three cents. It is estimated that the receipts into the treasury for the fiscal year ending on the thirtieth of June, 18FJ. in cluding the balance in the treasury on the first of July Inst, will amount to the sum of fifty-seven million forty eight thousand nig 1 hundred and sixtv-nine dollars and ninety cents; of which thirty-two millions of dollars, it is estimated, will be derived from custom- ; three mill ions of dollars from the sales of the public land* ; and one million two hundred thousand dollars from miscella neous and incidental sources, including the premium upon the loan, and the amount paid and to be paid into (he treasury on account of military contributions in Mex ico, and the sales of arms and vessels and oilier public property rendered unnecessary for the use of the govern ment by tle termination of the ’ war ; and twenty mil lion six hundred and ninety-five thousand four hundred and thirty-five dollars thirty-five cents from loans ul rea.jy negotiated.* including treasury notes funded, •which, together with the balance in the treasury on the first of July last, make the sum estimated. The exjiendiiures for the same period, including the necessary payment on account of the principal and in terest of the public, debt, and the principal and interest of the first instalment due to Mexico on the thirtieth of May next, and other expenditures growing out of the war. to he paid during the present year, will amount, including the reimbursement of treasury notes, to the sum of fifty-four million one hunered and ninety-five thousand two hundred and seventy-five dollar* and six cents ; leaving an estimated balance, in the treasury on the first of July, 1H49. of two million eight hundred and fifty-three thousand six hundred and ninety-four dollars and eighty-four cents. The Secretary of the Treasury w ill present, as requir ed by law, the estimate of the receipt* and expenditures for the next fiscal year. The expenditures as estimated for that year are thirty-three million two hundred and thirteen thousand one hundred and fifty-two dollars and seventy-three cents, including three million seven hun dred and ninety-nine thousand one hundred and two dollars and eighteen cents for the interest on the public debt, and three million five hundred and forty thousand dollars for the principal and interest due to Mexico on the thirtieth of May. 1850; leaving the tutu f twenty five million eight hundred and seventy-four thousand and fifty dollars and thirty-five cents, , which, it is believed, w ill be ample for the ordinary peace expenditures. THE TAKIFF. The operations of the tar iff act of 1816 have been such during the past year as fully to meet the public expecta tion, and to confirm the opinion heretofore expressed of the wisdom of the change in our revenue system which was effected by it. The receipts under it into the* tr us ury for the first fiscal vear after its enactment exceeded by the sum of five million forty-four thousand four hun dred and three dollars and nine cents the amount collec ted during the last fiscal year under th** tariff art of 1812, ending the thirtieth of June, Hl6. The total revenue realised from the commencement of its operation, on the first oITHa einb *r 1846, until tin* clo-e of the lust quar- “AS LITTLK GOVERXMEXT AS POSSIBLE ; THAT LITTLE EMANATING FROM A flO CONTROLLED BY TIIE PEOPLE, AND UNIFORM IN ITS APPLICATION TO YLL.” ter. on tlie thirtieth of September last, being twenty-two m mihs, was fifty-six million six hundred and fifty-four thousand five hundred and sixty-three dollars anil se venty-nine cents—being a much larger sum than was ever before received from duties during an equal period i under the tariff acts of 1824, 18*23, 1832, and 1812. Whilst by the repeal of highly protective and prohibitory duties the revenue has h *en increased, the taxes on the people have been diminished. They have been relieved from the heavy amounts with which they were burden ed under former laws in the form of increased prices or bounties paid classes and pursuits. The predictions which were made, that the tariff act of 181 G would reduce the amount of revenue below that collected under the act of 1842, and would prostrate the business and destroy the prosperity of the country, have not been verified. With an increased and increasing revenue, the finances are in a highW flourishing condi tion. .. e*hnme.rc';\ and navigan'om are pros i porous; the prices of manufactured fabrics, and of other, products, hre much less injuriously affected than was to have been anticipated, from the unprecedented revul sions, which, during the la.st and the present year, have , uv-rwlielrp *d the industry and paralyzed the credit and j comm ree of so many great and enlightend nations of Europe. . S,commercial revulsions abroad have always heretofore operated to depress, and often to affect disas trously, almost every branch of American industry.— The temporary depression of a portion of our manufac ! luring interests is the effect of foreign causes, and is Un less severe than has prevailed on all former similar oc ! casions. It is believed that, looking to the great aggregate of all our interests, the whole country was never more pros ix*.roils than at the present jx-riotl, and never more rapid ly advancing in wealth and population. Neither the f ireign war in which we have been involved, nor the loans which have absorbed so large a portion of ourcap ii;il. nor the commercial revulsion in Great Britain in 1847, nor the paralysis of credit and commerce through out Kurone in 1813, have ufleeted injuriously to any consideraole extent arty of ilie great interests of the country, o; rested our onward march to greatness, wealth, and power. j Had the disturbances in Europe not occured, our com • tneroc would undoubtedly have been still more extend ed, aid would have added still more to the national wealth and public prosperity. But notwithstanding these distuifiances, the operations of the revenue sys tem established by the tariff act of 181 G have been so generally beneficial to the government and the business of the eoimtfV. that no change, in its provisions is de uriudeiTbv a wise public policy, and none is recommend ed. TIIE SUB-TREASURY. The. operations of the constitutional treasury establish ed by the act of th * sixth of August, 1816, in the receipt, custody, and disbursement of the public money, have continued to he successful. Under this system the pub lic finances have been carried through a foreign war, in volving the necessity of loans and extraordinary expend itures, and requiring distant transfers and disbursements, without embarrassment, and no loss has occured of any of the public money deposited under its provisions.— \Vhiint it ha* proved to he. safe and useful to the govern ment, its effects have been most beneficial upon the business of the country. It has tended powerfully to secure an exemption from that inflation and fluctuation of the paper currency, so injurious to domestic industry, nn I rendering so uncertain the rewards of labor, and it is believed lias largely contributed to preserve the whole country from aserio M s commercial revulsion, such as often occurred under the bank doposite system. In the year 18 47 there was a revulsion in the business of Great Britain of great extent and intensity, which was followed by failures in that kingdom unprecedented in number and amount of losses. This b believed to bo the firsi.ia tanee when such disastrous bankruptcies, oc j earring it a country with which we have such exten sive com •. *rcc. produced little Or no injurious up on jbr. >~i * or mirrenciv ccmafond but iiujv affuTs | ted in our lAoney market, and our business and industry were still mrofperous and progressive, j During te present year, nearly the whole continent of Europe pas been convulsed by civil war and revolu tions, attended by numerous bankruptcies, by an unpre | cedented fall in their public securities, and an almost universal paralysis of commerce and industry ; and yet, although our trade and the prices of our products must have been somewhat unfavorably affected by these cau ses, we have escaped a revulsion, our money market is | comparatively easy, an 1 public anJ private credit have, advanced uni! improved. ’ It is confidently believed that wc have been saved from their effect by the salutary operation of the consti tutional treasury. It. is certain, that if the twenty-four millions of specie import id into the country during the fiscal year ending on the thirtieth of June, 1847. had gone into the banks, as to a great extent it must have done, it. would, in the absence of this system, have been made the basis of augmented bank paper issues, probably to an am Mint not less than sixty or seventy millions of dollars, producing, as an inevitable consequence of an ; inflated currency, extravagant prices fora time, and \v;l 1 speculation, which must have been followed, on tic* reflux to Europe, the succeeding year, of so much of that specie, by the prostration of the business of the c ountry, the suspension of the bank*, and most exten sive bankruptcies. Occurring, as this would have done, at a jieriod when the country was engaged in a foreign war; when considerable loans of speceie were required for distant disbursements, and when the banks, the fiscal agents of the government, and the depositories of its money, were suspended, arid public* credit must have sunk, and many millions of dollars, as was the case during the war of 1812, must have been sacrificed in discounts upon loans, and upon the depreciated pa per currency which the government would have been compelled to use. Under the operations of the constitutional treasury, 1 not a dollar has been lost by the depreciation of the cur rency. The loans required to prosecute the war with M exico were negotiated by the Secretary of the Treas ury above par, realizing a large premium to the govern ment. The restraining effect of the system upon the tendencies to excessive paper issues by banks has saved the government from heavy losses, and thousands of our business men from bankruptcy and ruin. The wisdom of the system has been tested, by the experience of tlie last two years ; and it is the dictate of noun 1 policy that it should remain undisturbed. The modifications in I some of the detail? of this measure, involving none of its | essential principles, heretofore recommended, are again presented for your favorable consideration. THE PUBLIC! DEBT. In my message of tlie sixth of July last, transmitting | to Congress the ratified treaty of peace with Mexico, I i recommended the adoption of measures for the speedy 1 payment of tlie public debt. In reiterating that rccorn i mendation, I refer you to the considerations presented in ; that message in its support. The public debt, including that authorized lo be negotiated, in pursuance ofexising j laws, and including treasury no*es, amounted at that time to sixty-five million town hundred and seventy eight thousand four hundred and fifty dollars and forty- \ one cents. I Funded stock of tin* United States, amounting ‘ > about lmlf a million of dollars, lias been purchased, as authorized bylaw, since that period, and tbc public | debt ha* thus been reduced ; the details of which will Ik* presented in tlie annual report o r the Secretary of the j Treasury. The estimates of expenditure? for tlie next fiscal ! year, submitted by the Secretary of the Treasury, i it is believed will be ample ftr all necessary purpo j ses. If the appropriations made by Congress shal 1 i not exceed the amount estimated, the means in the | treasury w ill he sufficient to defray all the expenses of the government; to pay off tlie next instalment, of three j millions of dollars to Mexico, which will fall due on ; the thirtieth of May next ; and still a considerable sur plus will remain, which should be applied to the further ! purchase of the public stock and reduction of the debt. | .Should enlarged appropriations be. made, the necessary • consequence will lie to postpone the payment of the debt, j Though our debt, as compared with that of most other nations, is s*nall, it is our true policy, and in harmony with the genius of our institutions, that we should pre sent to tlie world the rare spectacle of a great republic possessing vast resources and wealth, wholly exempt, 1 front public indebtedness. This would add still more to j our strength, and give to us a still more commanding i position among the nations of the earth. Tlie public expenditures should be economical, and j bt* confined to such necessary objects as are clearly within tlie powers of Congress. All such ns arc not ah j sol me I y demanded should iv* postponed, and the payment of the public debt at the earliest practicable jieriod should i Ik: a cardinal principle of our public policy. BRANCH MINTS PUBLIC LANDS. For the reason aligned in my last annual mosnttg*\ I repeat the recommendation that a branch of the mint of tie* United States be established at tin* city of New \ <>rk. Tlio importance of this measure is greatly increased by the acquisition of the rich mines of the precious metals in New Mexico and California, especially in the hitter. I repeat the recommendation, heretofore made, in I favor of the graduation and reduction of the price of • Mich of the public lands us have been long offered in the market, and have remain’ and unsold, mid m favor of AND MERCANTILE ADVERTISER. COLUMBUS, Georgia, Tlanrsjrlay Evening, December I S, IS4B. extending the rights of pre-emption to actual sell!era on the unsurveyed as Well as the surveyed lands. WAR AND NAVY DEPARTMENTS. The condition and ope rations of the army, and the state of other hrances of the public service under thd supervision of the War Department, are satisfactorily pi<>onted in the accompanying report of the Secretary of mir. On the return of peace, our forces were withdrawn from Mexico, and the volunteers and that, portion of tlie regular army engaged for the war were disbanded. Or ders have been issued for stationing tlie forces of our permanent establishment at various positions in our ex tended country, where troops may be required. Owing to the remoteness of some, of these positions, the dettrh ments have not yet reached their destination Notvfi th- Manding the extension of the limits of our eminlrc . • , the tbrrCK required in the new ui.-iftoritfe, it i conit ly believed that our present military establishment is * sufficient for all exigencies, so long as our peaceful rela tions remain undisturbed. Os the amount of military contributions collected in M exico, the sum of seven hundred and sixty nine thou sand six hundred and fifty dollars was applied towards the payment of the first instalment due under the treaty with Mexico. The further sum of three hundred anil forty-six thousand three hundred and sixty-nine dollars and thirty cents has been paid into the treasury, and ulw- ded balances still remain in the hands of dis btn ’ - g officers and those who were engaged in the col lection of these moneys. After the proclamation of peace, no further disbursements were made of any unexpended moneys arising from this source. The balances on hand were directed to be paid into the treasury, and individ ual claims on the fund will remain unadjusted until Congress shall authorize their settlement and payment. These claims are not considerable in number or amount. I recommend to your favorable consideration tlie sug gestions of the Secretary of War and the Secretary of the Navy in regard to legislation on this subject. Our Indian relations are pJesented in a most favorable view in the report from the War Department. The wisdom of our policy in regard to the tribes within our limits, is clearly manifested by their improved and ra pidity improving condition. A most important treaty with the Menomonies lias been recently negotiated by tlie Commissioner of Indian Affairs in person, by which nil their land in the State of Wisconsin—being about four millions of acres—has been ceded to the United States. The treaty will be submitted to the Senate for ratification at an early pe riod of your present session. Within the last four years, eight important treaties have been negotiated with different Indian tribes, and at a cost of one million eight hundred and forty-two thousand dollars ; Indian lands to the amount of m-ire than eighteen million five hundred thousand acres, have been ceded to the United Slates; and provision Ims been made lor settling in the country west of the Miss issippi the tribes which occupied this large extent of the public domain. The title to all the Indian lands within the several States of our Union, with the exception of a few small reservations, is now extinguished, and a vast region opened for settlement and cultivation. The accompanying report of the Secretary of the Na vy gives a sat isfactory exhibit of tlie operations and con dition of that I ranch of the public service. A number of small vessels suitable for entering the months of rivers were judiciously purchased duriug the war, and gave great efficiency to the squadron in the Gulfof .Mexico. Outlie return of peace, when no lon ger valuable for naval purposes, and liable to constant deterioration, they were Hold, and the money placed in the treasury. The number of men in the naval service authorized by law during the war, lias been reduced by discharges below the maximum fixed for the peace establishment. Adequate squadrons are maintained in the several quar ters ol the globe where experience lias shown their ser vices may be most usefully employed ; and the naval Horvi**e was nv-r in a condition ot higher discipline or greater efficiency . 1 invite attention to the recommendation o i the sv*(*re tary of the Navy on the subject of the marine cor pc*.— The reduction of the corps at the end of the war requir ed that four officers of each of the three lower grades should be dropp'd from the rolls. A board of officers made the selection ; and those designated were necessa* sily dismissed, but without any alledged fault. Icon cur in opinion with the Secretary, that the service would be improved by reducing the number of landsmen, ami increasing the marines. Such a measure would justify an increase of the number of officers to the extent of the reduction by dismissal, and still the corps would have fewer officers than a corresponding number of tnen in the army. MAIL STEAMERS. The contracts for the transportation of the mail in steamships convertible into war-steamers, promise to re alize all the benefits to our comm *rce and to the navy which were anticipated. The first, steamer thus secured to the government was launched in January, 1317. There are now seven; and in another year there will, probably, be not less than seventeen afloat. While this great national advantage is secured, our social and com mercial intercourse is increased and promoted with Ger many, Great Britain, and other parts of Europe, with all the countries on tlie West (‘oast of our continent, especially with Oregon and California, and between the northern and southern sections of the United States.— Considerable revenue may be expected from postages ; but the connected line from New* York to Cliagres, and thence across the isthmus to Oregon, cannot fail to ex ert a beneficial influence, not now to be estinuted, on the interests of the manufactures, commerce, naviga tion, and currency of the United States. As on impor tant part of tlie system, I recommend to your favorable consideration the establishment of the proposed line of steamers between New Orleans and Vera Cruz. It promises the most happy results in commenting f.ie.’i'lsEp between the two republics, arid in extending reciprocal benefits to the trade and manufactures of both. POST OFFICE DEPARTMENT. Tlie report of the Postmaster General will make known to you tlie operations of that department for the past year. It is gratifying to find the revenues of the department, under the rates of postage now established by law, so rapidly increasing. ‘File gross amount of postage** dur iug the last fiscal year amounted to foo million three hundred and seventy-one thousand an i- verity-seven dollars,exceeding the annual average received for the nine years immediately preceding the passage of he act of the third of .March, 1815, by the nun of mx thoiifand ffeitfUiindred and fifty-three dollars, and exceeding the amount received for the year ending the thirtieth ofjnn *, 1317, by the sum of four hundred and twenty five thousand one hundred and eightv-four dollars. The expenditures for the year, excluding the sum of ninety-four thousand six hundred and seventy-two dol lars, allowed by Congress at its last session to in lividual claimants, and including the sum of one hundred thou sand live hundred dollars paid for the services of the line of steamers between Bremen and New \ ork. amounted to four million one hundred and ninety-eight thousand eight hundred and forty-five dollars, which is less than the annual average for the nine years previous to the act of 1845, by three hundred thousand seven hundred and forty-eight dollars. .The mail routes, on the thirtieth day of Ju ie hist, one hundred and sixty-three thousand two hundred and eighty miles in extern—being an increase during the last year <f nine thousand three hundred and ninety miles. The mails were transported over then, during the same time, forty-one million twelve thousand live hundred and seventy-nine imh s ; making an increase of transpo tauon for the year of two million one hun dred and twenty-four thousand six hundred and eighty miles, whilst the expense was less than that of the pre vious year by four thousand two hundred and thirty five dollars. The increase in thr* mail transportation within the hist three years has been live million three hundred and seventy-eight thousand three hundred and ton mile*, w hilst, the expenses were reduced four luindre I and fif ty-six thousan 1 seven hundred an 1 ihirty-eight dollars —making an increase of service at the rate of fifteen per cent., a reduction in theexpense of m ire than fifteen per cent. During the prist year there have been employed, un der contracts with the Postofliee Department, two ocean st- arn rs in conveying the mails monthly between New York and Bremen, and one, since October last, perform ing semi-monthly service between Charleston and 11a* vanna; and a contract has been made for the transpor tation of the Pacific mails across the isthmus from emig res to Panama. Under the authority given to the Secretary of the Na vy. three ocean steamers have been constructed and sent to the Pacific, nn I are expected to enter upon lie* mail service between Panama and Oregon, and them t'-rmedialu ports, on the first of January next, and a fourth Ims Umn engaged by him for the service between I lav anna and Cliagre* ; so that a regular monthly mail lino will Is* kept up after that time between the l uited Slates and our territories on the Pacific. Notwithstanding this great increase in the mad ser vice, Should lie* revenue continue to increase the present year us it did in the last, there will be received near four hundred ttt.d fiftv thousand dollars more, than the expenditures. “Jg * 7 . :T I These considerations have satisf-:d the P< General that, with certain modi Heat ion of tl 1345, the revenue may he still further inerw reduction of postages made to a uniform ca ee w ithout an interference with tlie prim bean constantly anej. properly enforced, of irtH department sustain ifseti. A well-digested cheap postage system is tlie U t means of diffusing intelligence, am oig the people, and Is of so much importance in a country so extensive as that \ of the U. Stales, that 1 recommend to your favorable I consideration the suggestion of the Poslftianor ’general V lor its improvement. AMERICAN SYSTEM. f Nothing can retard the onward progress of our coun try, and prevent us from assuming and maii\tit:ing tlie rank among the nations, but a disregard of the ex ■fcTSCirrC .. .mm, and are*i., t jn, ; ;.o on unwis ypuV lie policy. We have just closed u foreign war ny tin honorable peace—a war rendered necessary and una voidable in vindication of the country is similar in some respects to that which existed immediately after the close of the war with Great Britain in 1815, and the oc casion is deem .and to he a proper one to take a retrospect of the measures of public policy w hich followed that war. There was at that period of our history a depar ture from our earlier policy. The enlargement of the powers of the federal government by construction, which obtained, was not warranted by any just interpretation of the constitution. A few years after tly close of that war. a series of measures was adopted w’Tmng j bed and combine . constituted what was termed and advocates the “ American system.” The introduction of the new policy was for a time favored by the condition of tlie country ; by the heavy debt which had been contracted during the war; by the depression of the public credit: by the deranged state of the finances and the currency : and by the commercial and pecuniary embarrassment which extensively pre vailed. These wore not the only causes which led to its establishment. The events of the war with Great Britain, ami the embarrassments which had attended its prosecution, had left on the minds of many of our states men the impression that our government was not strong enough, and that to wield its resources successfully in great emergencies, and especially in war, more power should he concentrated in its hands. This increased power they did not s.ek to obtain by the legitimate and prescribed inode—an amendment of the constitution— hut by roustruclion. They saw governments in the old world based upon different orders of socic’y. and so con stituted us to throw the whole power of nations into the hands of a few, who taxed and controlled the many with out responsibility or restraint. In that arrangement they conceived the strength of nations in war consisted. There was also something fascinating in the ease, luxu ry, and display of the higher orders, who drew* their wealth from the toil of tin*, laboring millions. The au thors of the system drew their ideas of political economy from what they had witnessed in Europe, and particu larly in Great Britain. They had viewed the enormous wealth in few hands, and had seen the splendor of the overgrown establishments of an aristocracy which was upheld by the restrictive policy. They forgot to look down upon the poorer classes of the English population, upon whose daily ami yearly labor the great establish ments they so much admired were sustained and sup ported. They failed to perceive that the “scantily-fed and half-clad operatives were not only in abject poverty, but were hound in chains of oppressive servitude for the ben efit of favored classes, who were the exclusive objects of the care of the government. It was not possible to reconstruct society in the*. United States upon the European plan. Here there was a writ ten constitution, by which orders and titles were not recognised or tolerated. A system of measures was therefore devised, calculated if not intended, to with draw power gradually and silently from the States and the mass of the people, am! by construction to approxi mate our government to the European models, substi tuting an aristocracy of wealth for that of orders and ti tles- VV iihont. reflecting upon the dissimilarity STTiOr in stitutions, ami of the condition of our people and those of Europe, they conceived the vain idea of building up in the United States a system similar to that which they admired abroad. Great Britain had a national hank of large capital, in whose hands was concentrated tlie con trolling monetary and financial power of tlie nation; an institution wielding almost kingly power, and exerting vast influence upon all the operations of trade, and upon the policy of the government itself. Great Britain had an enormous public debt, and it had become a part of her public policy to regard tin’s as a “public blessing.“ Great Britain had also a restrictive, policy, which placed fetters and burdens on trade, and trammelled the produc tive industry of the mass <f the nation. By her combin ed system of policy, tlie landlords and other property holders were protected and enriched by the enormous taxes which were levied upon the labor of the country for their advantage. NATIONAL BANK. Imitating this foreign policy, the first step in establish ing the’new system in the United Slates was the crea tion of a nation.d bank. Not. foreseeing the dangerous power and countless evils which such an institution might, entail on the country, nor perceiving the connex ion whif.h it wit* designed to form between the bank and tin* other branches of tlie miscalled “American system,” but feeling the embarrassment* of the treasury, mid war, some of our statesmen who had held different and sound er views were induced to yield their scruples, and, in deed, settled convictions of its unconstitutinnality, and to give it their sanction, a* an expedient which they vainly hoped might produce relief. It was a most unfor tunate error, ns tlie subsequent history and final catas trophe of that dangerous and corrupt institution have a buudanlly proved. Tlie hank, with its numerous branches ramified into the States, soon brought many of the cative political and commercial men in different sec tions of the country into the relation of debtors to it,and dependants upon it for pecuniary favors; thus diffusing throughout tlie mass of society a great number of indi viduals of power and influence to give to public opinion, and to act in concert in cases of emergency. The corrupt power of such u political engine is no longer ama tter of speculation, having been disptaye 1 in numerous in stances, but most signally in the political struggles of JS32-*3-'4, in opposition to the public will represented by a fearless and patriotic President. But the bank was but one branch of the new system. A public debt of more than one hundred and v ‘ millions ofilolliirsexisted; and it is ii"t tob many of the authors of tlie new system did - sfSnl its - speedy paym mtas essential to the public-prosperity, hut looked upon it- continuance as n j national evil. “Whilst tlie debt existed, it furnished aliment to the national bank, and rendered increased taxation necessary to the amount of the interest, exceed img seven millions of dol lars annually. This operated in harmony with the next branch of the ! new system, which was a high protective tariff. This i was to afford bounties to favored classes and particular pursuits, at the expense of all others. A proposition to tax the whole people for the purpose of enriching a few. j was too m Jiistrous to be ojienly made. Tile scheme was, therefore, veiled urid *r the-plausible bn l , delusivj pra* ! text of a in *.asure to protect “home industry;” and many of our people were, for a time led to believe that a tax j which in ihe main l’*!l upon labor, was for the benefit j of the laborer who paid i‘. ‘Fins branch of the ysteui involved a partnership between thogovernm mi! cud th * favored clause?—the former receiving the proceeds of the tax impored on articles imported, ad tlu? lat’ *: - the in creased price of similar articles produce.iitMs’ •> .’ ed by such tax. It is obvitnn that. Hie portion t > be re- * oeived by the favored cla-s s would..is a > ml be increased in proportion to the iuorea e of th • ret of tax impose ! and diminished as those rates w re re duced to the re. Venn • standard required by the want of tlie government. The rales require Ito produce u suffi cient revenue for the ordinary expenditures of govern ment-, for necessary purposes, were not likely to give to the private partners in-this scheme profits sufficient to satisfy their cupidity : and hence a variety of exp jdieots and pr t *xts wer resorted to for the purpose of enlarg ing tlie expendi tires, and thereby creating a necessity for keeping up a high protective tariff. Th** effect of this policy was to interpose artificial restrictions upon tlie natural course of the business and trade of the coun try, and to advance the interests of large capitalists and monopolists, at the expense of the great in iss of the peo ple, who were taxed to increase their wealth. INTKRN A I IMPROVKMENTS, Another branch o* thi*-v-tem was a comprehensive scheme of internal improvements, capable of in definite enlargement.,artd -ufiiciciii to swallow upas many mil lions annually as could Ik* exacted from the foreign com merce of the country. This was a convenient and ne cessary adjunct of the protective tariff’. It was to l* the great absorbent ol any surplus which might at any time accumulate in tlie treasury, and of the taxes levied on the |wople. not ior the necessary revenue purpose's, hut for the avowed object ol affording protection to the fovored classes. \u\iliary to the s.im • end, if it was not nti essential part ol the system itself, was the scheme which, at a la ter |k?riod, onlaitied for distributing the proceeds of the ►ales of the public lands among the State*. Ollier exj*c dient* were deyint and to take money out of the treasury, and prevent in coining in from an\ other huiiy'*. than os'ie monu fact aremsvif®*-'. Mriff. The authors and Supporter* of the that 1 hiive'TiriMiht*nlvo-nues of the largest ‘expendi -1 was troubled v?j|hAO(V“<ft>r necessary or useful purposes or not, mediately the expenditure* tho greater was the system taxes in tlie form of protective duties. 1 bi x rrrf*sYsT km — kit rcts. measures were unstained by popular nam.:7* n -td plausible arguments, by •which thousands wwv deluded. The bank was 1 ttrbe ari in disposable fiscal agent for the ffoyerimi'uit: was to c qii ilize exchanges, and torcgu&to and .Vnish a sound currency, always and everyvvhtfro of and .iform value.— ‘Flic protective tariff was to give eniploynrerit to “Amer ican labor” at advanced prices • was to protect “home industry,” and furnish a rjjfitt for the farmer. Internal improvements were. into every neighborhood and enhance tlie value f ‘ l v( , V man’s p. o ijHirUy. The and ist op of * ’.wrin.n • jjwus . -.enrich the Snip* j, finish tli-*:*'public works. piSljpiiiiieflh tdo- / out their b irders, and relieve th**m frfnn taxation. But the fact, that for every dollar taken out of tlie treasury for these object a much larger sum was transferred from tlie pockets of the people to the favored classes, was carefully concealed, as was also the tendency if not the the ultima to design of the system to build up an aristoc racy of wealth, to control the masses of society, and mo nopolize tho political power of the country. The several branches of this system were so intimate ly blended together, that in their operation each sustain ed and strengthened the others. Their joint operation was to add new* burdens of taxation and to encourage a largely increased and wasteful expenditure of public money It was the interest of the bank that tho reve nue c .‘ilfcmd and the disbursements made by the gov ’ erntnent should be large, because, being the depository us the public money, the larger the am milt the greater would o * tlie bank profits by its use. It was the inter est of the favored classes, who were enriched by the pro tective tariff, to have the rates of that protection as high as possible ; for the higher those rates, the greater would be their advantage. Jt was the interest of the paople of ail those sections and localities who expected to he benefitted by expenditures for internal improvements, that the amount collected should he as large as possible, to the end that the sum disbursed might also be the larger. The States being the beneficiaries in the distri tiou of tlie land money, (tad an interest in having the rates of tax imposed by the protective tariff large e nough to yield a sufficient revenue from that source to meet the wants of the government, without disturbing or taking from them the laud fund; so that cao.i of the branches constituting the system had a common inter est in swelling tlie public expenditures. They had a di rect interest in maintaining the. public debt unpaid, and increasing its amount, because this would produch an annual increased drain upon the treasury, to the amount of the interest, and render augmented taxes necessary.— The operation and necessary effect of the whole system were to encourage large and extravagant expenditures, and thereby to increase the public patronage, and main tain a rich and splendid government at the expense of a taxed and impoverishsd people. It is manifest that this scheme of enlarged taxation and expenditures, had it continued to prevail, must soon have converted tlie government of the Union, intended by its framers to be a plain, cheap, and simple confeder ation of States, united together for common protection, and charged with a few specific duties, relating chiefly to our foreign affairs, into a consolidated empire, de priving the States of their reserved rights, and the peo ple of their just power and control in the administration of their government. In this manner the whole form and diameter of the government would be changed, not by an amendment of the constitution, hut by resorting to an unwarrantable and unauthorized construction of that instrument. The indirect inode es levying the taxes by a duty on imports, prevents the mass of the people from readily perceiving the amount they pay, and has enabled the few, who were thus enriched, and who *eek to wield the political power of the country, to deceive and de lude thorn. Were th>? taxes enl&n&d by a direct levy Upofl UK CS.'C hfeybu s XuU-k this! CuuLJ not occur. UNCONSTITUTIONALITY OF TIIE BANK AND TARIFF. The whole system was resisted from its inception by many of our ablest statesmen, some of whom doubted its constitutionality and its expediency, while others be lieved it was, in all its branches, a flagrant and danger ous infraction of the constitution, That a national bank, a protective tariff,levied not to raise the revenue needed, but for protection merely, in ternal improvem-uts, and the distribution of the pro ceeds of the sales of the public lands, are measures with out the warrant of the constitution, would, upon the matiirest consideration seem to be clear. It is remarka ble that no one of these measures, involving such mo mentous consequences, is authorized by any express grant of power in the constitution. No one of them is “incident to, as being necessary and proper for the exe cution of. the specific powers” granted by the consti tution. The authority under which it has been attempt ed to justify each of them is derived from inferences and constrruetiou of the constitution which its letter and its whole object and design do not warrant. It is to be conceived that such immense powers would have been left by the framers of tho constitution to mere inferences and doubtful constructions ? Hud it been intended to confer them oil the federal gov ernment, it is but reasonable to conclude that it would have been done by plain and unequivocal grants.— This was not done; but the whole structure of which the “American system” consisted, was reared oil no other or better foundation than forced implications and infer ences of power which its authors assumed might be in duced by const ruction from the constitution. But it has been urged that the national bank, which constituted so essential a branch of this combined sys tem of measures, was not anew measure, and that ns constitutionality had been previously sanctioned, be cause a bank hud been chartered in 17‘JI, and Irul re ceived the official signature of President Washington.— A lew facts will show the just weight to which this pre cedent should he entitled as bearing upon the question of constitutionality. Great division of opinion upon tho. subject existed in Congress. It is well known that President Washington entertained serious doubts both as to the constitutionali tydlhd expediency of tlie measure; an 1 while the bill before him for his offieial approval or disapproval, so great were these doubts, that lie required ’ the opin ion in writing” of the members oi his cabinet to aid him in arriving at a decisicn. His cabinet gave their opinion, and were divided upon the subject—General Hamilton being in favor 01. uud Mr. Jetl rsou and Mr. Randolph b *ing opposed to the constitutionality and ex pediency of the hank. It is well known, also, that President Washington retained the bill from Monday, the fourteenth, when it was presented to him, until Fri day, the twenty-fifth of February—being the last mo ment permitted him by the coasitution to deliberate, when li • finally yielded to it his reluctant assent, arid gave it his signature. If is certain that as late as the twenty third of February—being the ninth day after 1 he bill was presented to him—he had arrived at no satisfac tory conclusion ; for on that day he addressed a note to General Hamilton, in which lie informs him that ** this bill was presented to me by the joint committee of Con gress at 12 o'clock on Monday, tlie fourteenth instant;” * and lie requested his opinion ** to wh it precise period, by legal interpretation of tlie constitution, can the Presi dent retain it in his possession, be lore it becomes a law by the t ipe of ten days.” If the proper const ruction was, that the day on which the bill was presented to the President, and the day on which his action was had up on it. w *re both to he counted inclusive, then the tim: gkjl wed him. within which it wotilJ he competent for him jo return it to the House in which it originated with his ‘bjection*. would expire on Tnursday, the livonty fotirtli'*’ February. Gen. il imiltou on the same day returned an answer, in winch lie states: “ 1 give it as mv opinion that you have ten days exclusive of that on which tin* hill was delivered to you, and Sunday*; hence in the present ca<e. if it is returned on Friday, it. will he in time.” By this construction, whieli the Pres i lent adopted, lie gained another day f*r deliberation, and it was not until tlie twenty-fifth of February that he signed the. bill ; thus affording conclusive proof that he ha l at last obtained his own consul to sign it not with out great and almost insuperable difficulty. Additional light lias been recently shed upon the serious doubts which lie had n the .>iibjeet, amounting at one time to a conviction that it was hi? duty to withhold hi* approval from the hill. This is found am ng the manuscript pa per* of Mr. M nli<on, auth irized to he purchased for the use of the govcrunvfU by nn act of tlie session of Con gress. and now for the first tun • act essible to the public. From these papers, it appears that President U idling ton, while he yet held the kink bill in his hands, actu ally requested M.\ M id,son, at that time a member of the House of Representative*. i prepare the draught of a veto message for him. Mr. M i limn, at Ins request, did prepare the draught of siieSt a in ■ -sage, an I scut it to him on the tw nty-fii-t “i I “hiirtrv. l/ I JI. A copy of this original draught in Mr. Malison'* own hand writing, vya* care fully preserved by him, and is am mg tliH paper* lately pnrdi.i •I by Conifers. It i*preceded by a note, written on the *.une sli *et. whi h i** aln in Mr. Madison's handwriting; *• li* full • * •• February 2Dt. 17'JI Copy o|'.i piper made out and unit to the Prifsid *nt at hi* ■ j"* t. to ie*id\ hi • Uittji]!ljn)ii>ri,t*h*itiM fj ~J!y .itgaiti*tYti>* bill tor in rorjK>r;iting it jiutio.ud bill iteitig then be ft/ > him.’’ Among 1 1 ic object inn. l ; jt*iisnsd in this paper Co'the bill, nnd which were submitted lor the cotiniderauyt* sff th© “resident, arc the following.: I object to the hill, because it is an cssenticL?’-. ‘ of the government that powers not delegated by the derfb Nutrition cannot hi* rightfully exercised ; because the power proposed by the bill to be exercised is not expressly delegated, and berans. F cannot satisfy myself that it results from any express power by fair and -,afe rules of interpretati n.’ ? The vveig ~f. y. precedent of the bank of 1791, o-nd the sanction ul tire gre.c: Aiamcof Waahunriou which has been so often tuvuked- * CU!n< a; meaty went ened by thv*Uelop/ >sllu,l, s \e facts. The%xperb tmtfmssiat . re. :<*b I- ‘ ■ fortunate lor the country, - l. -id 11 . is from bankruptcy and ruin, had our pub porary pressure of the tow* upon our financial ami pe cuuiary Interests, and refused to charter the second bank. Os this the country became abundantly satisfied, and at the close of its twenty years’ duration? n.-.i,i the case of the first bank, it niso ceased to exist. Under the repeat ed blows of President Jackson, it reeled and ill, and a subsequent attempt to charter a similar institution was arrested by the veto of President Tyler. Mr. Madison, in yielding his signature to the charter of 1816, did so upon the ground of the respes-to precedents; and as he subsequently declared, “the Bmk of the L niied States, though, on the original question, held to he unconstitutional, received the Exec utive signature.” It is probable that neither the bank of 1791, nor that of 1810, would have been chartered but for the embar rassmemsof the government in its finances, the derange ment of the currency and the pecuniary pressure which existed—the first the consequence of the war of the rev olution. the second the consequence of the war of 1819. Both were resorted to in the delusive hope that they would restore public credit, and afford relief to the gov ernment, and to tiie business of the country. Those of our public men who opposed the whole “Am erican system” at its commencement, and throughout its progress, foresaw and predicted that it was fraught with incalculable mischiefs, and must result iu serious inju ry to tle best interests of the country. For a series of years their wise counsels were unheeded, and the sys tem was established. It was soon apparent that its prac tical operation was unequal and unjust upon different portions of the country, and upon the people engaged iu different pursuits. All were equally entitled to the fa vor and protection of the government. It fostered and elevated the money power, and enriched the favored few by taxing labor, ami at the expense of the many.— Its effect was to make the rich richer, and the poor poor er - ’ Its tendency was to create distinctions m society based on wealth, and to give to the favored classes undue control ami sway in our government. It was an organ ized money power, which resisted the popular will, ar.d sought to shape and control the public policy. Under the pernicious workings of this combined sys tem of measures, the country witnessed alternate sou sons of temporary apparent prosperity ; of sudden and disastrous commercial revulsions; of unprecedented fluctuation ol prices, and depression of the great inter ests of agriculture, navigation, and commerce ; of gener al pecuniary suffering, and of final bankruptcy of thous ands After a severe struggle of more than a quarter of a century, the system was overthrown. The bank has been succeeded by a practical system of finance, conducted and controlled solely by the govern input. The constitutional currency has been restored ; th e public credit maintained unimpaired, even in a po riod of foreign war : and the whole country has become satisfied that banks, national or State, ore not necessary as fiscal agents of the government. Revenue duties have taken the place of the protective tariff. The distri bution of the money derived from the sale of the public -.jj bec.i abandoned, and flic corrupting ...sum of internal improvements, u is hoped, has ueeu effectually checked. It is not doubted, that if this whole train of me&sors© designed to take wpal h from the many, and bestow it upon the few, were to prevail, the effect would be to change the entire character of the government. One only danger remains. It is the seductions of that branch of the system, which consists iti internal ‘mprovements, holding out as it does, inducements to the people of par ticular sections an 1 localities to embark the government in them wi.bout stopping to calculate the inevitable cou sequences. This branch of the system is so intimately combined and linked with the others, that as surelv us an effort is produced by an adequate cause, if it he re suscitated and revived, and firmly established, it re quires tio sagacity to foresee that it will necessarily and speedily draw alter it the re-establishment of a national bank,the revival of a protective tariff, the distribution of the land money, on 1 not only the postponement to the distant future of-the payment of tiie present national debt, but its annual increase. I entertain the solemn conviction, that if the internal improvement branch of the “ American system” be not firmly resisted at this time, the whole series of meaMirna composing it will be speedily re-established, and the country be thrown back from i:s present high state of prosperity, which the existing policy has produced, and be destined again to witness all tite evils,commercial revul sions, depression of prices, ami pecuniary embarrass ments, through which we have passed during the last twenty-five years. To guard against consequences so ruinous, is an object of high national impoitnnce, involving in my judgment the continued prosperity of the country. THE VETO POWER. F have felt it to be an imperative obligation to withhold my constitutional sanction from two bills which had pass, ed the two houses of Congress, involving the principle of the internal improvement bran- It of the “ American system,*’ and conflicting in their provisions with the views here expressed. This power conferred upon the President by the con stitution, I have on three occasions, during my adminis tration of the executive department of the government, deemed it my duty to exercise ; ami on this last occasion of making to Congress an annual communication “ of the state of the Union,” it i* not deemed inappropriate tore view the principles and considerations which hove gov. erned my action. I deem this the more necessary be cause. nfter the lapse of neurly sixty years since the adoption of the constitution, the propriety of the exer cise of ili s undoubted constitutional power by the Presi dent has for the first time been drawn seriously in ques t on by a portion of my fellow-citizens. The constitution provides that “ every bill which shall have passed the II use of Representatives and the Senate slul!. before it become a law, be presented to tin* President of the U. S. if lie approve, he shall sign it, but if not, he shall return it with his objections, to that house in originated, who shall enter the nl.jei-M. ns their journal ami pro to i ©consider it The preservation from infraction is the President’s highest duty, He is bound to dis charge that duty. at whatever hazard of incurring the displeasure of those who may differ with him in opinion. He is bound to discharge it, us well by his obligations to tlm people who have clothed him with his exalted trust, ns by his oath of office, which he may not disregard.— Nor are the obligations of the President in any degree lessened by the prevalence of views different from his own iu one or both houses of Congress. It is not alone ha*tv an ! inconsiderate legislation ’hat he is required to cherk ; but if at any time Congress shall, alter apparent ly lull deliberation, resolve on measures which he deems subversive of the constitution, or of the vital interests of the country, it is his solemn duty to stand in the breach and resist them. The President is bound to approve, or disapprove, every bill which pac-sra Congress nnd is pre sented to hi in for his signature. Tne constitution make* this his duty, and he cannot escape it if lie would. He his no election. In deciding upon any bill presented to him. he must exercise his own best judgment. If he can not improve, the constitution command-him to return the bbl tii the house in winch it originated, with l is ol jec lions; mil if he fail to do this within ten days, (Sundays excepted ) it shall become a law without liis signature Right or wrong, he may be overruled by a vote of two thirds of each bouse ; til l, in •hut event, the hid be com*s n law without his -miction. If his objections be liot thus overruled, the subject is only postponed, and is referred to the Slates and the people for their considera tion and decision. The President** power is negative merely, and not affirmative. He can enact no law. only effect, therefore, of his w ithholding his approval f a bill passed by Congress, is to sutler the existing laws to remain unchanged. md th-* delay occasioned is only that required to enable ti-e States and the people to con sider ami act upon the snbj-et in the election ul public n ;ciu who will carry out their wishes and instruction*. Anv attempt to coerce the President to yield his sanction l‘i itit* pur. 1 , wiii.'li h** ennnot appfnvH. witulii l*. - viol.- ii.... in.. *|ii, it ufill, (-nn-lill' ,| n, palpable nnil flagrant ; Mil tit ml woulil hr.uk ilnwn ih iinli'p.ilil.iir- or tiii* MXMi-.i.ivtt liepitiini-nt, nut! multi’ the Pr.Mrl.nt. eler*. |M,| t, N th,. i.Mople. mill I'lmlie.l by the cnniUtutim with II ,W.*V to .lull'll.! tli-ir rijjhti, the mere Inutrunvitl'if nii.jiriiy Ml I t.iiigresi. A surretilef, n In- purl, pi’ lit” So. 50.