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MESSAG K. t tl/nw citizent of the Senate and House of Representatives . I regret that I rannot on this occasion congrat ulate you that the past years has been one ol un alloyed prosperity. The ravages of lire and dis ease have painfully afflicted otherwise nourishing portions ol our country; and serious embarrass ments yet derange the trade of many ol oar cit ies. Hut, notwithstanding these adverse circum stances, that general prosqitrity which has been heretofore so bountifully bestowed upon us by the Author of all good, still continues to call tor our warmest gratitude. Especially have we rea son to rejoice in the exuberant harvests winch hare lavishly recompensed well directed indust ry* and given to it that sure toward which is vain ly sought in visionary speculations. I cannot indeed view without peculiar satisfaction, the tv idences afforded by lhopa>t season of the benefits that spring from the steady devotion of the hus bandman 10 his U.mutable pursuit. No means of individual comfort is more certain, mid no source of national prosperily is so sure- Nothing fan compensate a people (or a dependence upon others for the bread they eat; and that cheerful abundance on which the happiness of every one wo much depends, is to bo looked for nowhere with such sure reliance as in the industry of the agriculturist and the bounties of the earth. W ith foreign countries, our relations exhibit the same favorable aspect which was presented in my last annual message, and afford continued proof of the wisdom of the pacific, just, and for bearing policy adopted by the first Administra tion of the Federal Government, and pursued by its successors. The extraordinary powers vest ed in me try an act of Congress, Ibr the defence «fthe country in mi emergency, considered no far probable as to require that the Executive should possesn ample menus to meet it, have not been exerted. They h rve. therefore, been attend ed with no oilier result than to increase, by the confidence thus reposed in me, my obligations to maintain, with religious exactness, the cardinal principles ihnt govern our intercourse with other nations. Happily, in our pending questions wn h 'Great Britain, out of which this unusual grant of authority arose, nothing lias occurred to require its exertion; and us it is about to return to ibe legislature, 1 trust that no luture necessity may cull for its exercise by them, or its delegation to another department of the Government. For the settlement of our Northeastern bounda ry, the proposition promised by Ureal Britain for u conimiscicn ol exploration mid survey, lias been' •received, and « counter project, including also a provision for the certain and final adjustment of the limits in dispute, is now before the linlish Government for its consideration. A just regard to the delicate stale ol this question, and a proper respect for the train al impatience of the Hlule of Maine, not loss than a conviction that (he nego tiation has lio.ii already protracted longer than is prudent on the part of sillier Government, have Jed mo to believe that ihc present favorable mo ment should on no account be suffered to puss without polling the question forever at rest. 1 I*o*l confident that the liovernmenl ol her iiritan ie Majesty will take the same view ollhis subject us 1 am persuaded it is governed by desires equal ly siro gaud rince:** Ibr mean) able termination o: tin* controversy. To the intrinsic difficulties of questions of 1 boundary lures, especially those described in re gions unoccupied, and but partially known, is to be wlded in m;r country the embarrassment in- I cessarily arising out ol our Constitution, by i which the General (ioverninent is made the or gan of negotiating, and deciding up m the parti cular interests ol the .states on whose frontiers ihese lines are lo lie traced. To avoid another controversy in which a Stale Govermacul might rightfully claim to have, her wishes consulted, previously to the conclusion ol coimwtionul ar- ] rangements concerning her nglits ol jurisdiction I or territory, I have thought it necessary lo call the att'cnlum of the (ioverninent el (•«. Jiritsin to I another porlion of our cmiienninotis dominion, I of which the division remains lo be adjusted. I j refer to the line Iro n the entrance ol Luke !Bu -4. use of the VVn ids, slipulat one tor (ho settlement of which an* to he found in the seventh article of the treaty ol Union. The commissioners up- j pointed under dial article l>y the *.wo Uovern- . ments having di tiered in li.cir opinions, made se parate reports, according m lls stipulations, upon I the points of disagreement, and these differences I arc now lo he submitted to the arbitration of tom ■ j friendly sovereign or Kiale. Tin* disputed poinis j should be-outlied, utui the l*«r designated, before i the Territorial t ioverninent, of which it ‘s one of 'no boundaries, lakes its place in the Union as a -Slate, and I lely upon lire cordial co operation of the Hrilisb Uovernmeni lo etlect that object. IJ'herede even, reason to believe dial disturb ances like those which lately agitated the neigh bouring Unlish Frovmces will not ogam prove I.re sources ol border contentions, or interpose obstacles to the continuance of that good under standing which It is lire mutual interest nl tirc.it A* at sin and tin* I. mud States to preserve and itwinUiiu. ! W nh ihviFrovinces themselves tranquillity if restored, turd on our frontier that misgutdod sym fAlliy in favor ol .vn u was presumed to he a go- | li-ml effort in behalf of popular rights, and I which in some instances misled a lew of our more inexperienced citizens lias subsi led into a rational conviction, strongly opjioseil loull inter meddling With me internal ali.u.s ol our neigh- i hors. ’f'lie people of tin; United relates ha-1, as n rU hoped they always will, a warm solicitude 10. the success of all who are uueivly endeavoring 1 lo improve the political condition of mankind. TIPs generous fcciing they cherish towards the most distant nations.; audit tva- natural, Utere fore,.tiinl il should he awakened with more than .f od'ir.ou warmth ip behalf of their immediate j •neighhi rs. But it daws not holonj to their cha racter, as a community, lo seek the gratification of those feelings in acta which violate their duly I a* citizens, endanger the peace of their country, and lend lo firing upon il the stain of it violated I I ulh towards lorelgu nations. If, xc.ihnis to . confer benefits on others, they appear tor a mo ment lo lose sight td the permanent obligations imposed upon them us eit mil, they are seldom long misled. Fromall the mtoruiauoa 1 receive, confirmed lo some extern by perscuat obseiva yio;i. I am saliafied dial no one can n.iv. hope to .engage in such rnuiprizca witJmul encounter ing pubh ’ indignation, in addition to the severest penalties of the law. Kccenl information also leads me -to h ope that *t\ie-fmigrants truly her Majesty’s I’rovinccs, who sWi sought rc.uge w .lliui our boundaries, are disposul ito become peaceitdc residents, and to abstain from all iitlempls to endanger the peace of that country which was afforded them an usy. I im. On a review ol the occurrences on both aides of the line, il isso'.ufae.tury lo reflect, that in almost every complaint against our country, I u offence may be traced lo emigrants from the I’roviu.er wh > have fcong.it rchi 'i* here. In the f*w instances in wh eh they w as* aided by citi zens of the L ulled Stales, the si ts of these mis guided men were not only in direct contravention of the lavs and well known wishes of their own Government. but met with tlie decided disappro bation of llte people ol the United Slates. I regret |0 stale lhe appea;ance of u different spirit among her Majesty's subjects in the Cana da.. The sentiments el hostility to our people an.l institutions, which have been so frequently expressed there, and l|io dlstggpul of our right's Which have been manifested on some occasions, hAVPjlam sorry to sav, been applauded and en evnragod by the people, sod even by some of the j subordinare local autlioinics, of ,he Pronin , a.— 1 he duel officers in Canada foitunalci'y have not entertained the same feeling, and have probably prevented excesses that must have been fatal lo the pcaee of the two counlrii s. I look forward anxiously lo a period wl on all the Iransaotiohs which have grown oul of this condition ol onr affairs, and which have I ecu made (lie subjects of co np.aint and remonstrance by tJie two Governments respectively, shall lie lolly examined, and the proper satisfaction given where it is due from either side. Nothing has occurred to disturb the harmony of »nr intentions with Austria, Belgium, Dm mark, Frame, Naples, I’orlugal, Prussia, Russia, or Sivoeden. 'J'he internal stale of Spain has sensibly improved, and a well grounded hope ex ists that ilh; return of peace will restore to the pe pie of thal country their former prosperity, and enable the Government to fulnl all its obli gations at home and abroad. The Government ! ‘ I Portugal. I have the satisfaction lo state, has paid in toll the eleventh and last instalment due lo our citizens (or the claims embraced in the set tlement made with it on the 3d of March. 1837. j I lay before yon treaties of commerce ncgolia ! ted with the King of Sardinia and of the Nether I lands, the ratifications of which have been ox changed since the adjournment of Congress.— i he liberal principles of those treaties will re commend them to your approbation. That with j Sardinia is the first treaty of commerce formed . by that kingdom, and it will, F trust, answer the i exportations of the present sovereign, by aiding the development ol the resources of his country, and stimulating the enterprise of his people.— Flint with the Netherlands happily terminates a long existing object ol dispute, and removes from onr future commercial intercourse all apprehen sion of embarrassment. The King of the Neih | erlands has also, in further illustration of ins | character for justice, and of his desire to remove j every cause of dissatisfaction, made conipensa ] tion lor an American vessel captured in 18<i0, by | a French privateer, and carried into (’urae.oa, where ibe proceeds were appropriated lo the use ol the colony, thi'n and for a short time after, under the dominion of Holland. Tlredealh of tho lute >ultan has produced n * alteration iu onr relations with Turkey. Our newly appointed Minister Resident has reached (’onslsntinople, and 1 have received assurances From the proem Ruler that (he obligations of our treaty, and those of friend ihip, will be lodil ed by liimsell in the same spirit that a United Ins Illustrious father. I 1 regret to fie obliged to inform you that no con vention for the settlement of the claims ofour cit izens upon Mexico has y.l been ratified by tho (ioverninent of that country, 'J’he first conven tion formed lor that purpose was not presented by the President of Mexico for Hie approbation of its < kmgre s, from a belief that the King of Prussia, the arbitrator in ease of disagreement in 1 the joint c nim ission to be appointed by the Uni | led ffiatea mid Mexico, would not consent to lake upon liimsell that friendly ollieo. Although not entirely satisfied with the course pursued by Mexico, I felt no hosinitieii in re. eiving in the most conciliatory spirit the explanation off-red, and also cheerfully consented to u new conven tion, in order to arrange the payments proposed 1 to he made lo onr citizens, in a manner which, while equally just to tbem was deemed less oner ous and inconvenient I . the Mexican Govern- I iiieul. Relying confidently upon the intentions j of tint Government, Mr. Ellis was directed lo | repair to Mt xico, and diplomatic intercourse nus 1 i been resumed between the two countries. The | j new convention has, he informs us, been recenl- I ly submitted by the President of that Republic to 1 its Congress, under circumstances which promise a speedy ratification, a result which i cannot al low myself to doubt. Instructions have been given to the Uonimis- I sinner of the United States under our Convention with Texas, for the demarcation ol the line whi h ( ! separates us from that Republic. The coinmis ' sinners of both Governments met in New Orleans , in August last. The joint commission was or- , gmiized, Hint adjourned to convene ut the same , place on (he twelfth of October. Ft is presumed t to be now in the performance of its duties. 'Flic new (loveijiriienl of Texas h-s >lmivn its i "••sot in i imivme nh I I!IV relations with us, ly a | prompt reparation lor injuries complained ol in the aies of two vessels ul the United States. | VN ; h Central Am -rfi-i 11 eoovenlmu i.rt'. been ; , | eoiielu led for the renewal of its former treaty | j wnli the United Stales. I Ids was not ratified i below the departure ■•( -uir lan- Charge d' A Hums I ! j from that eouiitryt an I the c >py of it brought by i 1 1 him was not recei-ct befo o the gdjouriioicnt of j 1 i the Senate til the last ses it.tr. In theme n while, : i the period limited for ih 1 exchange of loitfica- j ' j 'ions having expired, 1 deemed it expedient, in ( ' i coc.-rqiionce of tin*death of Ihct'l'.arged'Afl’iirrs i 1 lo send a special agent to (,'ent-al America, to] 1 elo-c the atVilf ofour mission there, mid to ar- , range with the Government an extension of tin* j line- for tlie exchange ofratilli ai omt. The commissi n ere.ited hv the plates which ' formerly composed the Kejmhlk*. of Uolmnhja, for | adjusting tlie eli.ims against that Government, i has, by n very nnexpivteil cmr-tru lion oflfie trea ; ly under wli eli it acts, decided that no provision ] ■ was made for those claims of citizens of tin* Uni- ' ] tel'd ates which uros-* from eaptu rs hy Col nn- i j win privateers, and we;e adjudged against the i 1 cl.ii.mints in the judicial Irihuua'.s. This deeis- j i ion will compel the United Slates lo apply to the i | several Gove, nmeiits formcily uuilorl for redress. | NVilh all the a* —New Granada, Venezuela, ami ; ivniador, a perfectly good understanding exists, j | Our treaty with Venezuela is faithfully carried | | into < xeeuliiiii. and that country, in the enjov ! im nt of tranquility, is gradually advancing in] | prosperity under the guidance of its present ills - ! I linguished President, General Pee/.. v\ ith Eeua- i - dor, a liberal commercial convention has lately I j been com l-.d d. which will be transmitted to the j Senate nt an early day. j With die great American Empire of Brazil - our relations continue unchanged, as docs our ! friendly intercourse with 'ln* other Governments i ofSnilh Nmerica— the Argentine Repn'ilic and ; the Republics of Uruguay. Chili. Peru and Boli : via. The dis.mlniion of the Pern-Bolivian Con j federation in.iv occasion some temporary ineon • venienee to our eiliz-ns in that quinler, but tin- I oM-eationson the new Governments which have i arisen mil of that (ointcderaiion to observe its I , treaty stipulations, will no doubt he soon under j 1 stood, and il is presumed that no imlispositi ni ; 1 will exist in fulfil thus, which it contracted with 1 I the United States. The financial operations of the Government during the pre-enl year have, I J m hnppv lo sav. been very successful. The difllcullies under j j which the Treasury Department has labored fr un j known defects In the existing laws rid titvo loth ■ ; sale keeping ot the public moneys, nggrovaleil hv | tlie snK|M*iisioii of specie payment hv several ot | the hanks holding public deposiles, or indebted t-i j puhUc oflieer* for notes received in payment of ] public dues, have hem surmounted lo a very | gratifying extent. Tho large current expendi ! lures lw>e been punctually met, and ti.e faith of j the Government in all its (leeuniary concerns has j been s rupulously maintained. Flic nineteen millions of Treasury notes nu -1 ihorizvd by the act of Congress of 1837, and the 1 modifications thereof, with a view to the indul gence of merchants on their duty bonds, and of ihcdoposile hanks in the payment of public mo neys held by them, have been so punctually re deemed as to leave less than the original ten mil lions outstanding ut any one time, and the whole amount unredeemed now fads short of three mil lions. Os these the chief portion is not due till next year, end tin* whole would have l*ecn alrea dy extinguished co«M On-Treasury have realized lire payrneiiU due to it from the banks. If those - i due from them during the next year siudi im l [ punctually made, and il'C’ongrrss shall ktc p »!>«• >' nppropriatkns within tiie estimates, there is every ' j reason to lie lie vo that all tlic outstanding Trras -1 ury notes* can Ive redeemed, ami the ordinary ex- I penaes defrayed, without imposing on the people a any additional burdt n, either of loans or imreased i 1 taxes. f i To avoid this, and to keep the expenditures ' | within reasonable hounds, is 11 duly, second only t j in importance to the preservation of our national oh a racier, and the protection of our citizens in : their civil and political rights. The creaaoH, irj ■ timeol peace, of a debt likely to become pernm , | m ot. is mi evil lor w hich there is no rijinvalent.. > | The rapidity tvnli which ninny of the Stall’s are - I apparently approaching to this condition, admon ■ ; islies us of our own duties, in a manner too im , pressive to be disregarded. One, not ibe least. i important, is in keep the Federal Government al- I ways in n condition to discharge, with case and 1 ] vigor, its highest f motions, should their exercise | he required by any sudden conjuncture of public I allairs—a condition to which we me always ex— ■ I posed, t n I which may occur when it is least ex j pcited. To this end. it is indispensable that its finances should he untrammelled, and its rcsoui ces. ns fares practicable, unincumbered. No ci rumslance could present greater obstacles to the j accomplishment of the e vitally irnpoitant oh- I Jecls, than the creation of an onerous national I debt. Our own experience, and also that ofoth [ or nations, have demonstrated the unavoidaioie and fearful rapidity with which a public debt is increased, when the Government has once s’ur rendered itself to the ruinous practice of supp ly ing its supposed necessities by new loans. T ho struggle, therefore, on our part, to he success! ul, must he made at "he threshhold. To make • our efliirts e fleet ive, severe economy is neccssa ry. This is the surest provision for the national vv cl ftire ; and it is. at the same time, the best pres er valivn principle on which our institutions n •«!. Simplicity and economy in the a Hairs ot St. ito have never failed to chio-tcn and invigorate 1 le publican principles, while these have been nv surely subverted by national prodigality, unt leg whatever specious pretexts it may have been in troduced or fostered. The Navy has been usefully and honorably employed in protecting the rights and properly id’ onr citizens, wherever the condition ol Blliiirs. seemed to require its presence. With’the exception ol one instance, where am outrage, accompanied by muni nr, was committed' on a vessel of the United Slat o*. xvihile engaged! in a lawful coininerce, nothing is tknwn to have occurred to impede or molest th c e<rtmq<:.'.se of our citizens on that element whe to it it ,«» .signally displayed, On learning this d: tring acton' pira cy, < ommodore Uead procceilei I im'.nctlui'lci v to the spot, and. receiving no sati etiicliun, uitiici in the surrender of tho mi id. rein c>r the restoration of the plundered property, imliclnd lewire and merited chiislisoinent on the haruariaun. It will b" seen by the report ol Uie then .tarv of the Navy, respecting the dins mut ships of war, that it has been deemed iH-csnarv to station a competent loiee on the coast o. a tri • ca, to prevent «■ fraudulent use of our ihig by to | feigners, ] Kceent experience has shown that the pis i | sions in cur existing laws which relate to the :salts j and transfer of American vessels while abrt ad j are extremely ileleclive. Advantage has ii :ei» [ taken ol tiiese del-ets to give to vessels win l!v belonging to foreigners, and navigating thcoce in. an apparent American ownership. This chat ac tor inti been so well simulated as to offhrd th in compuruiive security in prosecuting the si no trade—a IrafTi:* emphatically denounced in mr statutes, regarded with abhorrenee by our •citi zens, and of which the effectual suppicssin i is nowhere more sincerely desired than in the United .States. These circumstances inilki ■ it proper to lecoinmeinl to your early atlenlic n a caret,il revision oftheio laws so that, without im peding the freedom and facilities of onr nav .ga llon, or impairing an important branch in our in dustry connected with it, the integrity and lie noi ol onr flag in i\ he carefully preserved. Infor na tion, derived from our Consul at Havana, sit nv ing Uie necessoi ••• *>•<•, , |() # f ... of the Senate, near the close of the lasi •Session, but too late, as itappeired, u > lie a'-(ed upon. It will he brought to your notice by the pi opt i di'paitmcni. with udditioual conntit ;ni c.at'ums C om other sources. J ho latest accounts fro i. tire Kxploring , (ex pedition represent il a : tomnhilg suciessfullj in its objects, mid pm a imig results no less use Ini ti> trade and u.i ■ gati -n, than to science, I o.e extent ol post roads covt red bv mail >-cr vi eon the Ul of July last, was about Ido. uOO miles, and die rale of . ual transportation i upon them 31 40(3,878 miles. The nunib.-r of post offices tin that lay was 12,780, and on the ;30t(i nil. 13, this. I'ne cecoie',.* ot tlie Post Office Ueptrtmen t for the year ending wit U the 30lU_ of June lust, i van ;4,4Tii.t:34—exhibiting «u iuenease over .he preceding year oi is',’4l -of',). j'hes’iigjgciaenis end liahdili's ol the Depart merit for the same period aie ; 4.ti;4.' 17. Fhe exd-s of lial-iHues over tire tvvem ie fur the lasi two years is;-.s been owl east of t11,.> sur phis vvliich had previously accm imitated. The cash on bund on the 30tb tilt, was to out SibC 71)1 80, ami the current in wane of .Tie IV>, partim-nt varita very little from the rate d current expenditure. Most of the service suspended ht?t year has been restored, and most of the i ew ioutea established by the act of 7th Jtilv, ls3B, have been set in operation at an anmmt; cost of $130.9(13. Ni t withstanding the pecuniary <>iffi. culties of the country, the revenue ot tho licpul menl appears to he in 'reusing; and unless jt ! shall be soiiausly checked by lac recent snspen j sioii of pay mi ul by so many id'the hanks, it will ] he able not only to nmlnlain tin* j.resent mail I service, but in a short time to extend it. ii j,, j gratifying-lo witness the promptitude and tide- I lily with which the agents of the Department in 1 general perl'omi their public duties. Some difficulties have arisen in relation lo I contract* for tho transportation of the mads by rn bond and steamboat conmaiiies. It appears | that tin' maximum ol compensation provided by ; ; Congress to. the ! ransporl.ilion ol the malls upon 1 I railroads is not suliicicnt lo induce some ol tire j companies toeanvey them al -u- h Imuis as arc i reipured lor tile a comm datum of the pul.lie. It 'is one of tiie most important duties of the (Kite- ! i r.d Government to provide and maudlin lor the j use of the people of the Stales the best pritctica | Ide mad establishment. To «• rive at that i ml. it lis imlispeiisable that the 1 ost Office Department i i shall he (nabled lo control ihe hours at which trie I mail shall be carried over railroads, as it now does ever all other roads. Miiouidserious incou- I veiiience arise from the inadequacy ol me com- i peiisiilioii now provided by law, or from iimvu- j sonahle demands hy any of of the railroal com panies, the subject is of such genera! importance 1 as to require the prompt attention of Congress, In relation to stcainlioiU lines, the most effi cient remedy is obvious, mid bus Ih'<ii suggested, by the Post Master General The VV ai amt Na ! vy Dopartm-nu alriaty imj I y steamboat* in j their service; and although it is tiy no means de- I sirable that the Government should undertake the transportation ot passengers or freight as a busi ness, there can l>e mi reasonable ol iccliou to mi ning boats, temporarily, whenever it may ho i;«. oissary to put down attempts at extortion, to he discontinued as soon as leasonahle contracts can he obtained. The suggivtimis of the Postmaster Ornernl re lative to tie inadequacy of the legal allowance to witnesses hi eases of pio-ccolion- lor mail depre- ; • dutions merit your » rious consideration. Th P I safety ol lue triads requires that suidi prosecution i shall be ertieient; and justice to Ua; cuuc-n who»o ; time is required to be given to the public, demands . ; not only that Ins expenses shall ho pat i, hut ihut f I he shrill receive a reasonable compensation. The leporls from the V\ ar, Navy and Post Of fice Departments will accompany this continual- I i aiirin, mid one from lire 1 rearury Department will he presented lo t ongressin a few days. For various details in respect to the matters in i charge of these Departments 1 would refer you I lo those important documents, satisfied that you ; \ will lind m them many valuable suggestions, i which will lie found well deserving the attention ; : ol the Legislature. From a report made in December of last yi ar by the Secretary of Stale, to the Senate, allowing ! the trial docket of ea‘h of the I, ircuit Goods, and i the number of miles each judge has lo travel in I Idle performance of iiis duties, a great inequality 1 appears in the amount of labor assigned to eacli judge. The number ol terms to be held in each ! of the com Is composing the ninth circuit, the ' distances between the places at which they ait, j and from thence to the seal id Government, are ! reprt sent) d lo be such as lo render it impossible j for the judge of that cirt uit to perform, in a man . ner corr esponding with lire public, cxigi n-ics, ; his term and circuit duties. A revision, therefore, j of the present airangcment of the circuits s. ems i lo be called for, and t» recommended lo your no j tice. j I think il proper to call your attention to the I power assumed by Territorial Legislatures to au thorize the issue of bonds hy corporate compa ! nies on the guaranty of the Territory. Congress i passed a law in 183(3, providing trial no act of n Territorial Legislature incorporating hanks should 1 have the force of law until approved hy Con- I gress; hat acts of a very exceptionable character, I previously passed by the Legislature ot Florida, | were sulli-rcd to remain in force, by virtue ol which bonds may lie issued to a very large union tit by these institutions upon the faith of the Teni tory. A resolution, intending to be a joint one, ( passed the (Senate al the same session, express ing the sense ol Congress that tile laws in ques tion ought not to be permitted lo remain in force unless amended in many material respects, but il failed in the House of Representatives for want I of lime, an 1 the desired amendments have not been made. The. interests involved arc of great . importance, and the subject deserves your early and certain attention. The continued agitation of the question rela . live to the best mode ot keeping rn ■ disbursing the public money st li injuriously aliects the bu siness oi the country. The suspension of specie payments in 1 847 rendered the use o! deposile banks, as prescribed by the act ol 1830, a source i rather of eiin arrassmenl than aid, ami of ncces | sity placed the custody of most of the public mo j neysaltcrwards collected, in charge of the public i 1 officers. Tile new securities lor its safety, which i is required, were a principal cause of my co.uve ; ning an extra session of Congress; Iml in ccuse qu nee nf a disagreement between the two Hou . #es. neither then, no al any subsequent period, [ lias there been any legislation on the s diject.— I The >dfirl made al the last session, to obtain the I authority of Congress, to punish the use of pnl>- i '■ he money for private pnrp s.s as a dim—a I ' inc isure atumiccj under other Governments with • signal advantage—was abo i.iisueccscful, Finn , diversities of opinion in that ! i cly, nolwitlistaml- | i mg die anxiety, doimless felt hy it, lo aiior l evn iry pen; ticalde secur.ly. Fin ic.-iuit ot tins is still i to leave the custody of the public money without ! those safeguards which have be«n for several I year*c.inic-tly desired by the Executive; ami.as tiie remedy is only In inT’ uml in the action of the Legislature, il imposes on me tiie duty of again i-ulcoitiing 1 1 you, tbepro| ricly of passing a law prnviiiin ; thr the sai'e-kivping of the pub lic moneys, and especially to ask that its use for private purpose* by any oflieei enlruslid with it may be decided to lie a teloiiy. pnmsiiable with penalties proportioned to the magnitude of the ofi’cnce. Tiiese eireumstanees, addoil to 1: nown detects in tiie existing laws and unn-ual I'erangemCnt in the general operations oi trade, have, during the last three years, much increased ihe d Ilieaiilea attend nit on .the collection keeping, and dis bursement ol the revenue, ami i-alied forth eorre fj'tHiti.l‘At’iuons iroia most' tlicni in cnarge. j] ippily these nave bei’ii successful be yond expecljilioii. Vast sums have been eollec laiaml disbursed by the several Dcp rtrnents with unexpected aheapm -s and case ; traml'crs have been v, n-.Uty ui.-.ae u. c,, ~ j• ion,however ilislain; .and defalcations Inr lew til in in gin b in: be. n an icipiled, from tile absen eof adequate legal leatrainls. Su u t , t .colli efs of the F easury and pest OIH -e |J,-. par.ment* were charged rub tin custody otT i -g o: iii." public i niff toy* received hy them, there have he. n collected .-ixty-six milliims of dollars, and. excluding the case ol the hue collector at York, the aggregate ti.nuutil ol lossessu-.ta.ired in the col.ei lien canm.", it is bc : i vc.l, exceed six ty thousand dollars. Tiled‘fdca'.i.n of tint late colljctur at that city, ol the extent and eircam sl.iaccs ot which (Jon ;ie.-s itasbeen fullv inform cl, ran through all the modes nf ki'onmg ,: ii' public money tb it, have Iktu hitherto in" u-e, and "'■is diuingushed hy an aggravated disregard of! d iu, timt broke through the rcstra ids of every ; sy i'.cin. uud cannot, Ibe efoic, be usefully ruler- ! ;ed o as a lest ol the comparative safely of eith er. Addition! inlonna ion will also he furnished hy tne report, ot t,ic Secretary ol the Treasury, i i reply to a call ms Ic up u. that officer by tne House oi Representatives at the last scssan'i, re- ' ipiirmg deluded inturiimliun nn the suh'cet aide- 1 I iu.ti by public old 'isor agents under each Ad- , miiiastralton, from 178Dlo FS37. This tloctt- : "'■cut will lie subiioind to yon in h few days. ! The goiu'ia! rcsints, (independent of the" Post I O.llce. which is -epl s.qiaialily. ami will be stated , by i'.scit.) suin' as they bear upon ibis subject, ' arc, (hut kho lo.nso.*; wijich i»ave Uvn. iui'.l an- • 111'* ‘j t»> he, suslanuid. hy u.iy a^viiis, have beo».—ll.e greatest by banks, including, ns I , requoedin tncrcsnlulion tiicirileprecialed paper I | rccciv, d lor public dues; that the next large I ! j have been by di-bin sing nine r». and the least by j j colic 'tors ami receivers. If the losses on duty I j bon is are included they alone will be threefold ! j th-'sc by liutli co lecto s and leceivcis. On,- j j whole expi ri nee. it.cretore,tinnisln s the strong- i i csl evidence that the desired legislation of Con- j ; gross is atone want ng lo insure in those opera- ' lions the highest degree of security and fa ililv. ! jßu • i also appeii's t■lt iv - been the expoiieme f ! , ollier na io;.s. From l e r u sol inquiries I i made by the tjeeret.iry ol the Tre.sury in regard I lo die practice among then*, 1 am enabled to stale ; that in twenty tw o out nf twi n y -s, ven foreign f Governments, t,vm wliieli undonbied inforniation lias been obtain d the public moneys are kept in dialge o. public o.ii mrs. 1 b's coiieurronee of l opinion in favor of that system is perhaps as ! j K ri> lt as exists on any question of internal admin i istiation. . tn the mode of business and official restraints l on disbursing officers, no legal change waj j fro . j ihiced hy the suspenaion ol specie payments. I File report last relerrred to will be found to con ; tain aiso maeh useiul nitoiinalion ni relation to I this suliject. I have heretofore assigned to Congress my reasons lor believing that tho establishment of an Independent Nation d Treasury, as contemplated by the Constit itiou, is necessary to the sale ac tion of the Federal Government. The suspen son of specie payments m 1837, hy tile hanks hiving the custody of the public mom y, showed m «o alarming a degree our depeiidenee on those institutions lor the performance of duties requir ed by law, that I then rec 'iiiinemled the eiiu. c 1 dissolution of that connection. This recommen dation has been su. jeeted. as 1 desired it should be. to severe scrutiny ami animated disciissi.in . 1 and 1 allow tay.idf to heliove that, li itwilhstand \ V v tvfsK* Kiathenynil e\oKihU‘d v\. KSaWWpunl on at! suujecftr inW.vinnwicifen-' poilaul considerations, it lias tKiircil in il s lav or as general a concurrence of public set timei.t as could be expected on one ol such magnitude. Kerent events have also contributed to dpvel ope new olj-elinns to such a connexion. Seldom is any bank. under the existing system and prac tice, aide to meet, on demand, all its liabilities for deposites ami notes in circulation. It maintains ■ specie payments and transacts a profitable busi i ness, only by the confidence of the public in its solvency; ami whenever this is destroyed, the de mands utils depositors and noteholders—pressed more rapidly than it can make collections from its debtors—force it to stop payment. This loss | of confidence, with its consequences, occurred in 1837, and eilorded the apology of the hanks for their suspension. The public then acquiesced in the validity «f the excuse; and, while the Slate Legislatures did not exact from them their for feited charters, Congress in accoidancc with the recommendation ol il.p Executive, allowed them time to pay over the public, money they held, al though compelled to issue Treasury notes to sup ply the deficiency thus created, Jl now appears that there arc other motives than a want of public confidence under which the banks seek to justify ll emselves in a refusal to me t their obligations. Scarcely were the coun try and Government relieved, in a degree, from th > ditfi mlties occasioned by the gi neral suspen sion ol 1837, when a pa tial one. occurring with in thirty months of the former, produced new and serious embarrassments, though it hail no pallia j liou in such circumstances as were alleged in jus tification ol that which had previously taken place. There was nothing In the condition of the coun try to endanger a well managed banking institu tion; commerce was deranged by no foreign war; c cry branch of in inuliteturing industry was crowned with rich rewards; and the more than j usual abundance of our harvests, after supplying our domestic, wants, had left our granaries and storehouses filled with a surplus for exportation. It is in the midst of this, that tut irredeemable and depreciated paper currency is entailed upon the People by a large pi rtion of the banks. They are nut driven t > it by the exhibition of a loss of public confidence or of a sudden pressure from their depositors or note holders, but they excuse themselves by alleging that the current of busi- I noss, and exchange with foreign countries, which draws the precious met ds from their vaults, would require, in i rder to meet it. a larger curtailment “f their loans to a eompa-ntively small portion of the community than it will be convenient for them to bear, or perhaps safe lor the banks to ex act. i’lte plea has ceased to be one of necessity, 1 britv. nienee and policy are now deemed sufficient in warrant lln so institutions in disn gardiiig llteir i solemn obligaiions. Snob conduct is not merely I an injury to individual crediloir., but it is a wrong I to the whole c-mnrr.nniiy, from whose liberality I they bald most valuable privileges—whose right j they violate, whose business they derange, and | (be ■. line ol whoseptopcriy they render unstable i and nnspenre, ft must be evident that this new i ground for bank suspensions; in reference to ■ whirli them u.’iion is not only disconnected with, , leal.wholly independent of. that of the Public, i givts a character to their suspensions more alat | coinr tli.m an which they exhibited before, and Steady increases the impropriety of relying on the hoiks in the transactions of the Government. A large and highly respectable portion of our bulking institutions are, it all -rds toe unfeigned plea-mre to stale, exemplid from all blame on ac count of this second delinquency. They hove, to their gie.it.credit, not only continue! to mo l their cngigeine.iils, but, have even vepu li itod tiie grounds olsnspen-ion no v res >ited to. It vs on ly by such a course that the confidence and good willot the community can be preserved, and. in the sequel, the best iiiieu-sts of the institutions themselves promoted. New danger to the bonks are also daily dis closed from the extension of that system of ex travagant credit of which they are the pillars. Formerly our foreign coionieree was principally founded mi an exchange of c.mirnodilus, includ ing the pie- ioos metals, and leaving in its Iran— actions lint little foreign debt. Sui li is net now ti;ccase. Aided by the facilities afforded by the. b .nks, mere credit has become ton common!*, the the basis of trade. Mans oft he banks thorn-ilv es. not can.cut with largely sn.-unlating ibis ays'cm u u 'itg olb; r.; h ive vaunted the bn.dne.,s. while they impoir the . ta’ i'o , of the nien anlile coin mu'inr ■ th-v In- bettn.ue borrowers, instead of w-e. »rv<; it* -y e-li’.ti-h their agencies abroad ; t .ey i.vii ...'-ge.lv hi st,vks and merelie.od ise ; tii.-y eii'-i'iirage the issue of •.late seeurilics. until the to-eigii ..iurket is glutted with them ; and, mis itiWit!; ttu- b-gitim ite u-c of their own r>i> il and the ever. ise of > ir lawful privilcgia, they raise, by logo loans ail luional mean-f,»r **'• LTV v.irjfl \ oi ‘i’iW. (IlStiSllT.® i*l ten lant on tins i! --iatiat I rum the former coins-.' ■>! !■• niie.ss in this cmuilry are now shored alike by b ums go ! in bvidads. t i an extent of which i there is perhaps n i u evious example in the an nals oi our country. S » lonas a v»t tingtiesa es the laivign iesider, and a sufficient export of our pioiluetioiis to meet any ng.ivsary [attial pay ’ i tenls, b-ave toe li >w oi credit undisturbed, ail appears to be prosperous; but. as soon as it is checked by any hesitation onroad, or by any ina ; bility o make payoienf there in our p odu lions, the evil- ol tiie ay stein a e.dis, ■ osei.l. The paper currency, vvnieb might s-ive tor domestic purpo ses, is uscle.-s to pay the debt due in Europe. Gold and silver are therefore drawn, in exchange . '-or their notes from the funks. To keep up their ; supply of coin, these institutions are obliged to ' call upon their own debtors who pay l;.cm prut : ctp illy in their own notes, which are as unavail able la them as rh-y are to the me chants u meet the foreign demand. Tim calls ol the hanks, , there, ‘hit, in such emergencies, of net easily ex - coed that demand, and produce a corn sounding ; etnl-idmenl.of their accommodations and of the ; currency, at the very moment when the stale of I es tra io render.- t most ini-onvenictit to lie home. I he intensity ot tins pressure on the commuuUy I i H it> prop Ttion to tb ■ previous libe.ulily of ere 1- ! ,t, and consequent expansion of the currency t ! torced sales of property are made at she tin e j when tac tn-a:is ot p trelnt.-dng me most redueed. i and the wo:st calam-ues to to JiviJoals are only ' at Inst tirresic 1 by an op. n vi d -tion of their ob | ligations by the banns, a reload to piy spe. n- lor * men nates, and m imposition upon the eomntu i ndy id a fluctuating and ilepr- - ated eu-reney, 1 hose roast! pa.-uc-s are inherent in tiie pre j sent system. •’■toy are not influenced by the | banks bein ’, large or small, create.l bv National jor r-Tite Govern mints. They are lb results of j the irresistible laws of trade and credit. In t e ! rocenf evc-iil.s whi.-li have so strikingly illustrated I the certain effects of tins.- laws, we have seen lac bank ot the largest capital in the Pinion, es tablished under a National chatter, and Ltvlv strengthened, is we were authoritatively informed I y exchanging that for a State eliarteiy with new and miusu d privileges—in a condition too as it was said, ofen .re soundness and great prosperi ty— not meiely umihle to resist these effects, but the first to \ lebl to them. Nor is it to bo overlooked that there exists a chain ol no- essary depcmlonei. s among liiese in stitutions. winch obliges them, to a great extent, to follow the course of others, notwithstanding its injustice go their own immediate creditors, or injury to the peculiar community in which they are placed. The dependence ol a bank, which is in proportion to the extent ot its debts for circu lation and depositts, is not merely on others in its own vicinity, but on all those' which c mnect it with the centre of tnue. Distant hanks may ful. without seriously affecting those in our prin cipal commerc ial.ities; hut the failure of the latter :s felt til the extremities of the Union. Tin- sus pension at New York, in i 837, was oveiy where 1 folio y.-.t, as a ion g; j I jWiis KTiuwiifStfyecciiliy at Ttnladelph immo u.l j ately aitected iuO hanks oi the it?ouili anil ,I jin a similar manner. This dependence ol our l I wool.! banking system institutions i■, ,fl low large cities, is not found in the laws of then I | organ zition. but in those of trade and exchange.l t The batiks at mat centre to which cum nry flows I j ami where it is required in payments fur me.-. I I chandise, hold the power of controlling those in I regions when-e it comes, wltile the latter possess! no means of restraining them ; so th it tiie value! of individual property, ami the prosperity oftradn| through the whole interior of the country, are! made to depend on the good or had management I of to.; banking institutions in the great seals ofl trade on the seaboard. I Hut this chain ol dependence does not stop I here. It docs not terminate at Philadelphia or I New York, ft teaches across the ocean and I ends in London, the centie of the credit system. I 'i'he same laws ot trade ivhii h give to the banks* ! hi our principal cities power o . er tbc whole bank-1 J log system of the United States, subject the lor- I I mcr. in llteir turn, to I lit; money power in Great I Itrit liii. It is not deemed that the suspension of I the New York banks in 1837, which was follow-1 ed io quick succes.-ton throughout the Union, I j produced by an application ol that power; audit I | is now alleged, in extenuation of the present con- I | dilion of so large a portion of our banks, that I I their embarrassments have arisen from the same I cause. I From tliis influence they cannot now entire!-. * escape, for it has ils origin in the credit 1 cues of the two countries; it is strengthened In- | the current oi trade and nxeliange. which centres! in London, and is renJe.ed n'n.o.-t irr. sistiblc by I the large debts contracted liter by i.urrncrehanlit | our banks, and our .states. It is'tbut, that an in’ I Iroduetion of a new hank into the most distant of | our villages, places the business of that village I within the influence of the money power in Eng. I land. It is thus that every new debt which wc | contract in that country, s--rioti<ly affects our own I cu.-ren-. v, -and extends over tne pursuits of our | citizens its powernd inlluenee. Wo cannot c- | i capo front this by milking new banks, great or J small, .Stale or -National. The same chains | which bind those now existing to the centre of! this system of paper credit, must equally letter I every similar institution we create, it is only bv I the extent to which tins system has been pushed I oi late, that ve have been made, fully aware of its I inesisiibi,! tenibmy to sul-ject mir own banks I am! currency to a vast er.ntrutling power in a tor-1 cign land, and it mlds a new argument to those H yvnieh idustrulo tlu-ir prcc.ariotts s lualion. Er.-1 d.utgci. d. in the li st pla. e, 1-v their own mir* I munugement. and again liy the* conduct ot'cverv I institution which conuet-l them v. itlx the ccnti',--1 trade in our own country, they are yet suli-1 l jet"ted beyond id. ibis to the (.-fleet ot i. itatev | mr-ii-mre-s policy, neci-oS-.ty. or caprice, ma-. unlu n I | those vvlio control the credits oi England to resort I I to. t mean riot to .-ommont upon tiles- measures, I j present or past, and much less to dis; outage the I prosecution of fair commercial dealing fictween I .ite tw > countries, based ~n riti-iprocul benefits • but it bavin- now been made manifest that fi.i- I P-'Wer oi intlieting these, and similar injuries is; I by the resistless law of a credit currency ail J I credit trade, equally capable of extending thtur I j consequences through all the rninifi,-aliens of our I lunkiiig system, and. by that means, indirectly I i obtaining, particnlaily when mr bank a .r used I its depos tories of the public moneys, a dancer-ms I polrti.-al iiiflncneo in the Sinitod Staid-. I ln»o I deemed it my duty to bring the subject to v-atr B no.r-e, and as.; tor it you - rems cons deration, Bj * ' •"» argum-ml r. quired f-ey.iad tin- 1 xp dtion B of ibesi- tacts, to show tl,. i. u -n, .p;ie; y , f using B I iiur :>ank ng insUiulion a.s dc-positoties of (ae B pnhlic money I Can we vriiiutr no?*-’ly to B encounter the risk of the-r indivi iu.il and m.-jiual B inismmngomenl. but, at the same ti.ne, to pb-rB our |..n-ig;i and domestic p-du-y entin-iv umi.-rH tiie emit ol oi a foreign mom-Vdi uiicrcsi ! ToH d-i so is to impair the independence ol our i .- m mint as the present event system lias alrea ly B impa led the independence «>f our banks. liisß to sub nit. all- its imp .riant npe-ali ms, wiu-ritcr B oi |"’a- o or war, to conln if . d i,r thwarted at first by our own banks, and then fix a power i aoroa.t greater liiau ibwo--, lv,-s. icanu(}t brtng^! | myself la depict tiie Imniiliaiiun to w'deh tali I j I •-.iveritmi iit.and people might be sooner or later B j reduced, it the means in defending their eigilts j ire to hr; m.els dependent upiii >s ,-j.vyß jitaictne most powerful of motives to kina ■ them. 1 I , -Nor is it only in referenre to the effect of this® ( | stale ot til mgs <>n lb- tuilopcuib !-ci- o! our Guv-B J *. c' 1 r ’ ] ;)I "i*' u.uik. tout the Kicijcct piesruuß j *'• cimsideration . k u >» !,e v-mved a/soi«B j ns rclatious to the gen-.-iol trade of onr i I lu- fi.ue Knot long past when a deficiency ofß j Imvi-n crops was itiuught to atlord a prutitaiile* i market i-'f the surplus of our iniiui.lj v; but liowß j w;- await will) feverish anxiety the new sot thaß | Luglisn harvest, not so nm-u iovn moltveHol’B i eotnmc’i'jiilile sympathy, but fearful 1.-.-t us auiie-B I tpaled tadtne sbmild miuoxv the field of credilß tiicie. D ies not this speak volumes to the pal-B riol ? Can a system bo bem licicnl, w in-, or ja-tl which creates greater mixie y for interests di-peri-B dan*- on foreign credit than for the gi w-i al pror-B p--r;iy ot our own couti ry. and tim nr ilitable e\-B po.taiioii e! tbc surph.s pirodn.ie ofour labor 1 B •be cirrum.-limecs to who b I lav thus tul*B verted appear to me to aiV> d wei-b y reasotfs.l devclo, ed by hi to events; to be added -o ibusrß wT.i.'h I have on former (i.t;\sioii< oft-red, ivhi-nH sit -milting to your beilerknowcledgo and discern-H ini'i.l the propriety of si puvaling the custody * the public money from hanking inelouMous.— H Nor has any tiling occurred to lesscvr* id ra . v ß opitituil, tne taten oi wli U has linen ikeretJfurrH urged. The only ground mi which lli-t custodyM can U-desin-d by the bunks, is the urofitabli- *«B wmicbtiu-y may maivc ot tUn inon.-y. u-rB would in; regarded in individuals as a breach of B trust, or a i ritnc of great magii-ludc, and velilß may i.c reason iblv doubted whotder, first andß last, it is not attended with mom miscbievotnß c mscqtiences, wh n permitted to the former tte‘B i-> liia taller. J’he practice es permitting tbfH i>n 1 )tt ,* money to he u.-cd bv its keepers as brri’.H i.-: bdicved to i.e peculiar to tus crfimt.y, and , exist scarcely any w bcie els.-. To procun'-'B r hme, improper mihieu-.-cs are appealed to; in>’B t wise cotmeetlmis arc i-btai I -h d betwci n the j vi-inainii mi I vast Hand its of powerful SJl f B !■ ■ Dstulious ; other nn) ives than the public goidH y arc broug it t > bear bjtii on tin; Executive utdß a I Geg.si Hivo d-p irtin, ix s. and scliidi i-.iiubmali-ie-B j Icaihug l ) spr- ial le-islati tui, arc fonnid lli-'B a j made the interest 1-auKing insniiiU-U' p their sloe .holders lormigoout tin- Union to us'B li I their exertions for Idle in -ivusc of taxao.ni d lot- a-cum d tin,u ot a s-g pi.:s rcvimuc; si while an excuse is at!. d.-ti, them .m- an- fut-B a nisbed tor those excessive issues wbich trail It® o i extravagant tiad.ng and spe- illation, and air fill ti | fotrrunners of a r*«t rlei.t abroid. and -l suspr# - B vi j stonof the banks at home B p j impressed, I hereto e, us i am, with the ; ty oi llic lands ol the viovei-nuieiit i.cmg \ndt*B l,! j drawn from Hi-private use ol either banks or m-B ' r | dividual*, and tiie public money It- pt i-\ duly : -i-B bl j pointed public agents; amt bi-iicving.as 1 dodbaß such also is ibejudgmeiit wbicb discussion flection and exj-nience have produrc,i Ju t- a public mind, I leave liio subject wi fi you. c at all events, essential to the iofcresls of the r<>wH *f •nuinly and the business ol tbc Government, h a decision should be made. H u Most of the arguments that dissuade us fnj^fc‘' ( employing banks m toe custody ami disian^B' 1 meat of the public money apply with equal to the receipt o, their notes for public dues. T^^B 1 ' difference is only in form. In on.- instance I Government is a creditor for us deposius,