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ICON U £ O ft O 1 4 TELE Oft A P ft tms Tlie a j ; e»idU jU*«» iSciA^c. (CoutioJtl.) ■van If oir pj-.ver- Wvfj L-j* doubtful i:i this re ap "t, is ■ Ciii^t>uiUJ!i tui v stands. there arc cotiriii* ervioiu aJordsd by reseut exparienee, which would ae *>ri to -iioxe it our duty to avoid a rosor. to such a system. All will admit that tlie simplicity and economy of the .State Governments, mainly depend uu tbe tact that money has to be supplied to support them by tbe same men, or their axems, who rote it away in appropria tions. Hence, when tlierc arc extravagant and waste ful appropriations, there must be'a corresponding in crease of taws, and tiie people, becoming uwu.teued. Will necessarily scrutinize the character of measures wh ch thus inercase their burdens. By tnc watchful eva of self interest the ajeuts ef the people in t!ie T„-*te Govuriuoduts are repressed, ai d kepi witbiu lie 1 limits of a J tst cco-o ny. 11 at if the necessity of levying t!ie taxes be taken from those who make the appropriation*, anj thrown upon a more distant and ic.ss responsible ■Cl of public agents, who have power to approach tbe people by au indirect uuj stealthy taxation, there is jeisna to fear that prodigality will suonftupercede thos« characteristics which have thus far made us look with to much pride and confidence to the State Govern- ;—-j. . .t , _ , , „ „a Such was the origin of a national hank currency, t those of the deposite banks for an equal period of and such the beginning of those diriicuiti.-s which now tune; and if a comparison be instituted between the npiK-ar in the excessive issues of the banks incorpora- amounts oi service rendered by these institutions on t.-d by tie various Stati s. ' the broader basis which has been used by the advo- Altboagh it may not bo possible, by cr.y legislative : cates of the United States Hank in estimating what State Legislatures, instead of studying to restrict their State expenditure to the smallest possible sum, will claim credit for their profusion, and harrass the Gencr- |i3 Govern inen: for increased supplies. Practically, there would soon be bui one tSXimr power, and tli.it Vested in a body of then far removed from the people, in which the farming and mechanic interests would scarcely be represented. The Statr.s would gradually Jo*s their purity as well as their independence; they Would not dare to inar nirnt the proceedings of the G moral Government, le.it they she..Id lose their sup plies : ill would b j merged in a practical run validation, cemented by wide-upread corruption, which could on ly be eradicated by one of those bloody revolutions Which n -fa-ioiially overthrow life despotic system of the old worl j. In all the other asperts in which I h ive been able to lpn't at the efl’.-ct of such a pr|i(Cipje of distribution USJii td>* beat interests of tiie country, I can sept .mill ing to compensate for tile disadvantage* to which I have adverted. If we consider the protective duties, which arc, in a greet degree, he source of the surplus TOVorije, henciieial to one section of the Union, and prc'ildli'ial to another, there i- no corrective for the e- vil for such a plan of distribution. On the contrary, there is reason to f.-ar that all the complaints which have sprung f-om this cart would l» ■ Aggravated. : v- «sry one must hr setisihi • that a disiribytion of the sur plus must beget a disposition to cherish the menu* which create it; add any system, therefore, into which it enters, mu-4 have n powerful tendency to increase, rather than dimiiiis 1 ! tin* tariff. If it were even admit- tsi! tliat the advantages of a system could be made «•- anal to nJI the sections of the Union, the reasons alrea dy so Urgently c filing for a reduction of the revenue, would, nevertheless, lose none of their force; for it will always he improbable tint an intelligent and virtu ous community can consent to raise ft surplus for the mere purpose of dividing it, diminished, as it irin.-t ev idently be, by the expenses of th- various machinery necessary to”the process. The safest and simplest tnod ‘ of obviating all the difficult':;* which have been inenioued, is to collect on ly revenue enough to nice? the wonts of the Govern ment. and Jet the people keep tiie balance of tit? pro perty in their own hands, to h - used for their own pro- itt. . adi .State will than support its own Government, and contribute its due share toward* tbe support oi' tlie General Government. There would be i o sur plus to cramp and lessen the resources of individual wealth and enterprise, and the hulks would he left to their ordinary menus. Whatever agitations and fluc tuation* might arise from our unfortunate paper sys tem, they could never he attributed, ju*:iyor unjustly, to the action of the Federal ' Government. Thare would be somo guaranty that th» spirit of wild specu lation. which seeks to convert the surplus revenue in to b i lking C-ip.’t-', would ii.* effectually cheeked, and that the scenes of d unc.-ilmnon. which are now so prevalent tb. ough the land, would disappear. j!desiring ffi conceal that the experience and ob-.vvarion of the iu*t two year*, huvooperated a par tial change in my views upon this interesting subject, at is never.'.,clr«.i regretted that the suggestions mode by m* in my anuitnl menaces of ]889 and 1830, have been grciuly misui,woir»ond. At tliat time, the gre at struggle was begun against that latitude, ariau con-true- tion of tbe constitution, which authorizes tin unlimited appropriation of the revenues of the Union to internal improvements within the States, tending to invest in th a hands, and place uudor the control tif the General Government, all the principal roads and canals of the country, in violation of State rights, and in derogation of State authority. At the same Mine, tiie condition of tht manufacturing interest was such as to create at* ap prehension that the duties on imports could not, with- j out extensive mischief, be reduced in season to prevent | the nc-umtilotion of s considerable surplus after the | payment of the nail on a! deb;. In view of the dangers of such a s irp'.u*, and i.i prcforenoe to its appiicaliun ta internal improvements, in delegation of the rights and p.xvirs of the States. the suggestion of an amend- tnc :t of thu constitution to authorise its distribution r-.Mi I: v/iuini: Iternative for wiiat were deem ed ji r — a temporary lesort to relieve au over- b j:■ t ■. T.-e is.trv nn ii he Government could, vvith- i.* s-. idea a. 1 destructive revulsion in the business cl" III'.- ei>i .try. cra.In illy return to the jitel principle of | taisiiig no Mine revetme limn .ho people, in t.cv?s, that is i'-e.es:;,\ry tv«r its economical rapport. liven to-it.liter.i.uivi: w.v* not spoken of but in r.ai.u n-.tioa with .hi iiinendment of the constitution. No tampon- rv in.tonveni iice can justify the exarcis • cf a prohib ited power, or a power not granted by thatinstruinent: an i it vais fiO'ii a einivi. but • even a t miporary character, that it .vas suggested only in connection i *' with a i appeal t > tho source of all legal power in the General Government, t ;« States which have establish ed it. flu .'i 'h uu appeal lias been taken, ami in my opinion a •i>triaucio;i of the surplus revenue !>y Coa* gr •to iiu Suites or the people, is to he con tiden-! ,s a Dn|ig the prohibitions of the constitution. As already intimated, my views have undergone a change,. > fur att to he c mvineed that no alteration of the c.vfts-i iipn.i, in tliia respect, is wise r.r expedient. T.V in liKure of ta anumul iting surpiu* upon the means witliio our power, to change at once tiie system which ha* thus been introduced, and has received the ac.|Uiesonac of nil jioriions of the country, it is certain ly our duty to do tul that is consistent with our consti tutional obligations in preventing tho mischiefs which nro threatened by its undue extension. That the ef forts of the fathers of our Government to guard a- gainst it bv a constitutional provision were found ed on aij'intimate knowledge of the subject, has been frequently attested by the bitter experience of the country The same causes which led them to refuse their sanction to a power authoricing the establishment of incorporations for banking pur noses, now exist in a much stronger degree to urge a* to exert the utmost vigilance in calling into action the means necessary to correct the evils resulting from the unfortuate exercise of the power, and it is to be hoped that the opportuni ty for effecting this great goed, will be improved before the country witnesses new scenes of embarrassment and distress. Variableness must ever be the characteristic of a cur rency, of which the prer ious metals arc not the cbict ingredient, or which can be expanded or contract 'd without regard to die principles that regulate the value of those metal* as a standard in the general trade of the world. With us bank issues constitute .such a curren cy, nnd must ever do So until they are made dependent on those just proportions of gold and silver, as a circu lating medtnm, which experience has proved to be ne cessity, not onlv in this, but in all other commercial countries. Whore those proportions are not infused into tin- circulation, and do not control it, it is manifest that prices must vary according to the tide ot batik is sues, and tho value and stability of property must stand exposed to all the uncertainty which attends the admin istration of institutions that are constantly liabla to the temptation of an interest distinct from tliat of the com munity in which they ere established. The prngri-si of an expansion, or rather a deprecia tion of the currency, by excessive bank issues, is rd- wavs attended by a*loss to the laboring classes.—This port : on of the community have neither time nor op portunity to watch tiie ebbs and flows of the money market. Engaged from day today in their Usual toils, they do not pereieve that although their wages are no minally th'* same, or even somewhat higher, they are greatly reduced in fact by the rapid increase of a spu rious currency, which, os it appears to make money abound, they arc at first inclined to consider u blessing. I- is not with he speculator, by whom this uppow iion is better understood, and is made to contribute to his advantage It Is not until the prices of the : ec ;s- snries of life become so dear that the laboring classes ear,not supply their wants out of their wages, that the wages rise,' and gradually reach a justly proportioned mte to tliat of th® products of their labor. When thus by the depreciation in consequence of the quantity ot paper in circulation, wages as well as prices became exorbitant, it is soon found that the whole cflect of rhe adulteration is a tariff on our home industry for the benefit of the countries where geld and silver circulate, and maintain uniformity and moderation m prices. It is then perceived that the enhancement of tli® price of land and labor produces a coresponding increase in the price ol products, until these products do not sustain a competition with similar ones in oilier countries; and thus noth manufactured and agricultural productions I cease to bear exportation from the country of the spit- j rious currency, because they cannot be sold for cost. | This is the process by which specie is banished by the ! paper of the batiks. Their vaults are toon exhausted to pay for foreign commodities; the next step is a stop- page of specie payment; a total degradation of paper as a currency; unusual depression of prices; the run of d' btorj, ami the accumulation of property in the hands ot cre^tuts and cautious capitalists. it was in view of these evils, together with the dan gerous power wielded by the Hank of the U. States, and its repugnance to our constitution, that I was indu ced to exert the power conferred upon rne by the A- inericau people, to prevent the continuance of that in stitution. itut akhuugh various dangers to our repub lican institutions have been obviated by the failure of that hank to extort from the government a renewal of its .charter, it is obvious that little has been accomplish ed, except a salutary chitiye of public opinion, towards restoring to the country tie sound currency provided for iti tie constitution. In the acts of several of tiie 3talcs ptohibiling the circulation of small notes, and the auxiliary enactments of Congress at the last ses sion forbidding their reception or payment on public account, the true policy of the country lias been ad- v.ui.-oJ. a:,d a larger portion of the precious mttals in fused into our circulating medium. These measures will probably be followed up, in flue lime, by tka e- ilnctinent ot State laws banishing from circulation bank notes of still higher denominations; ami the ob ject may be materially promoted by further acts ot" Con gress, forbidding tire employment, as fiscal agents, of such banks as continue to i&>uc notes of low denomin ations, and throw impediments iu the way of the circu lation of gold and silver. The effects of an extension of bank credits and over of bank paper, have Been strikingly illustrated in they consider the domestic exchanges transacted by it, tiie result will be stUl mote favorable to the deposite banks. The whole amount of public money transferred by the Hank of the Unit -d States in 183d, was $16,000,000. The amount transferred and actu illy paid by the de- positc banks in the year ending the 1st of October last, was $£J.3iO,60J; the amount transferred and paid be tween that period and tbe 6th of November, was $5,- 300,000; and the amount of transfer warrants outstand ing on-that day was $14,450,000; making an aggre gate of $59,168,804. These enormous suras of mon ey first mentioned have been transferred with the great est promptitude and regularity, and the rates at which the exchanges have been negotiated previously to the passage of the deposite act, were generally below those charged by the bank of the Unite.. States. Indepen dently of these services, which are far greater than those rendered by the United States Hank and it* twenty-five branenes, a number of the deposite banks have, with a commendable zeal to aid in tne improve ment of the currency, imported from abroad, at their own expeuse, large sums of the precious metals, for coinage and circulation. In tne same manner have nearly all the predictions turned out iu respect to the effect of the removal of the depositee—a step unquestionably necessary to prevent the evils which it was foreseen the bank itscli would tudeavor to create, iu a final rtruggle to procure a re newal of its charter. It may be thus too, in some de gree, with the further step.- which may be taken to pre vent the excessive issue of other Cauls paper; but it is io be Moped tliat nothing will deter the - cdcrul and State authorities from the firm and vigorous perform ance of their duties to themselves and to the people in this respect. In reducing the revenue to the wants of the Govern ment. your particular attention is invited to those arti cles which constitute die necessaries of life. The du- from taxation would be felt so generally and so benefi cially. To this may be added all kinds of fuel and provisions. Justice and benevolence unite ill favor of releasing tbe poor of oiir cities from burdens which arc not accessary to the support of our Government, and tend only to increase tjje wants of the destitute. It will be seen by the report of the Secretary of the Treasury, am! die accompanying documents, that the Hank ot the United States Inis made uo payment in account of the stock keid by the Governn cut in that institution, although urged to pay any portion which ■iihfiusuu its convenience, and that it has given no in formation when payment may be expected. Nor, al though repeatedly requested, has it furnished the infor mation in relation to its condition, which Congress au thorized die Secretary to collect at their last session; such measures as ate within die power of tne Execu tive have been taken to ascertain the value of the stock and procure tile payment us ea ly as possible. The conduct and present condition of that Hank, and the great amount of capital vested in it by die Unted States, requre your careful attention. Its char ier expired on die 3d day ofMarch last, and it has now uo power but thatgiven'in the 81st section “to use the corporate name, style, and capacity for suits for the final settlement and liquidation of die atVairs and ac counts of the corporation, and for the sale and dispo sition cf their estate, real, personal, and mixed, but net lor any other purpose, or in any odicr manner whatsover, nor for a period exceeding two years after diat the various matters the exniraliouof the said term incorporation.” Hefore nving documents, in respect to those relations, will re- the sales of tho public lauds. From die returns made by the various Jlegislers and Receivers in die early part of last summer, it was perceived that the receipts arising from the sales of lint public lands were increas ing to an unprecedented amount. In effect, however, these receipts amounted to nothing moia than credits i:i bank. The banks lent out their notes to speculators; I they were paid to tiie Receiver.-, and immediately re- I turned to tut banks, to be It: -t out amain and again, be ing more instruments to transfer to speculators the most valuable public land, and pay the Government by a I credit oa the books oi" the bunks. Those credits on I the books of some of the western banks, usually call -d s, were already greatly beyond their immodi- •i m i t r* h -f 1 depunites, were already greatly beyond their nunicdi surplus ‘of revenue is' of 'that! ««* f 1 ' W'^nt. and were rapidly increasing Iudci:u each speculation iuinisln-d means ior another ; for no sooner had one individual cr company paid in the notes, than they were immediately lent to another for a like purpose, and the buuks were extending their business and their issues so largely, as to alarm consid erate men, and render it douhtmi whether these batik credits, if permitted to accumulate, would ultimately be of the lens; value to the Government. The spirit of expansion and speculation was not confined to the de posit banks, throughout the Union, and was giving riso ;o new institutions to aggravate the evil. The safety of the public l ands, and the interest of the people generally, required that these operations should do ckecked; and it became the duty of every branch of the General and State Governments to adopt all legiti- taate and proper means to produce that salutary cflect. Under this view of my duty, I directed the issuing ol the order which will be laid before you by the Secre tary <•! the Treasury, requiring payment for the public l ii.’ds sold to be made in specie, with an exception, un- .’•jjishfi.m of theG’-:: n! Government, and the 8lit _. ii.-* eff-ct- upon the credit system of the roc.::try, pro ducing ifi«t*piw ui: tis o.is audrtiusi scontractions, 3 i-.tir tii.t- i i th * pn tu of property, r.i-h speculations, jdleiMs, i and a deterioration of morals, have txu riit us the imnnpxnt lear.jv, that *my transient nr'i'inn wi.r.'t mav attend the re laitimi ot our reve nue to the av.nrs of ..'ir Government, it is hi be borne in prefiroai'i ri a.i o.vi-flowing Treasury. tghon. as well #< the history of the tnuss which gave birfii to it. f.'-lt :t was th:* purpose of the convention to < aabh-u a currency consisting of the precious me tali. These, If out their per li ar properties, which rendered them tin* standard of value m all other countries, were Adopted in this, is ivoii tocslalilidi its commercial »t»n- c ird i:i rrferr uco t» foreign countries, by a permanent rile, as to cxef'iflic use of a mutable medium ofex- •hangs, sarii i* of certain a-rrir.nlturnl commodities, reragoigi ri bv P:» rlAfUtes of" r.ncie States a* a tender . for <t -fat*. O: 'u< rt'll more pernicious expedient of a pajiev currency- Tit* ii-t. from ihe experience of the evils «f ihe to*cf r <J ;::ng ill ’ revolution, had (m.-.oiim so just!/ i.‘;ioxion*. as ncir only to suggest the clausa »n lie constitution forbidding the emission of bills of credit by the States, bur also in produce that vats in.the convention which negatived the prop.i-.iUon to grant power to Cfr.cr s to chartsr ce-poratoms— q propostl au well ffndrrstood a' th • time, c* intended to authorial the «<ibli-S"n!U of a natlenal bank, vr.'iii'h was ta ir»ne a eurrcTV-. v 0f ban t *:oS: . on a cap ita! ta be eroih' t :n sour extent on: of riovnrnmeni a Pick.v Although this proposition w as refund ?»;• adi- »er: vino of wa ouncerdi in, the ohy-e: ww afterw irds i.i cST.-ct .ilgEiiocil, by its ioganionw advocates, tfiror.gli . Xt sUaiuiiJsso.istnKtioa «> :ua cunstitn'.kin. T.it d’lis <u the devolution wire fktvlcd, a; prices which fa.-:ni*u na c jtit-compand wi.h the iiorciuaJ amount of iV *t3tt*:. a^I under cireumtttneM which exposed the* npouA'eoi'yrn: of tiitk>e who participated iu t&u pas* jaje.df tlid p.".l to distrust. Tiu fact* thg: the value nf lire stork was rr afiy cn 2mneed by the aov.Jcn of the bin*, tiiat it was well aajer.'OM flout * mb -•hui I be tiv* ca*c, a:;.l that ,-nrne Of eb: livocak.* iff us jdi:>..im largjly I^nefib uJ>y it, fypo tg ta t>*r In :fory of tie ti nes, :n3lare. o*ell cAleV) .IgOimA tbe respcci winch height to-. tVrr wi*e be JO dot to Am act on of tbe Cpogrcse* wtu.b crutitdJ tbe vxsfifbuen. On tbe e.>pblUi.rr{jtt of a Mti tnl bans, it became interjn of jo cri }i:0rs, that gw3 should be super- - »ddJ by tbe jMta-r ot the .bank, as a geoerol currency. A eol»t mos dm aaac.wt>ta the gold coins, which -•adn their ei|*i)scaaaa (0jgreign etHXWre*, *s n t*rr- eantib) emnduliig, mere getiwli than ibek retention oijNii V»ae Mimuar. It feNarwe, bso matter of 40Jtirse, iff tut JssAfneJ My those who «*aUisk$d jiri.-i.urc wh cli ha> rincc pervaded our eastern as well a: tae European coininegci.il citieo. Hy preventing the extension of thu credit system, U measurably cutofl' tiie means of speculation, and retarded i'.s progress in monopolizing tiio must valuable of the public lands. It h:is tcini-d to save the new States irom a non-resident proprietorship, one of tne greatest obstacles to the ad vancement ot a new country :uad tiie prosperity of an old one. It has tended io keep open the public lands lor the entry bv emigrants at Government prices, in stead of their being compelled to purchase of specula tors at double or treble prices. AuU it is conveying in to the interior iarge sums in silver and gold, there to en ter permanently into the currency of the country and place it on a firmer foundation. Jt is confidently be lieved that the country will find in flic motives which induced that, and the happy consequences w hich will have eu.-in.-d, much to commend and-nothing to con demn. It remains for Congress, if they approve the policy winch dictated this order, to lollow it up in its various bearings. Much good, in my judgment, would be pro duced by prohibiting sales of the punbe lands, except ti actual settlers, at a reasonable reduction of prices, and to limit tlic quantity which siiali be sold to titem. Although ills believed tbe General Government never ought to receive any thing hut the constitutional cur rency in eevhaugc for .ko public lands, that point isoiffJ be of less importance it tiie lands were sold for iimmediate settlement and cultivation.—Jude-d there is scarcely a mischiiff arising out o* our present laud sys : tern, melodic g the aecutouiaUug surplus of revenue, isbscit wookl not »i once fie remedial! by a restriction on i.iiid oaks, to actual settlers; and it promises other- advantages to the country in general, and to new States w pbrticufcr, which canuoVfaii to receive the most pro- fouixl consul oration of Congaess. experience cootiuues io realize thchixpcetations cn- tertuued as to the capability of the .State Hanks to per form the ditties of fiscal agents for live Gqvonupenuat tbe time of u*e removal of thu deposites. li was alleg ed by the advocates of tbe Hank of the United states, that the State U*nks, whatever might be the regulations of tiie Treasury JJeparuncnt, could not make the trans.- fen reqOired by ahe Government, or negoe.iate the do- xpiraliouof the said term incorporation, file expiration of tiie charter, the stockholders of the bank ch ained an act of incorporation from the legis lature of Pennsylvania, excluding only the United Hints*. Instead of proceedings to w ind up their con corns, and pay over to the United States the amount due on account of the stock held by them, the president aud directors of tho old buuk appear to have transfer red the books, papers notes, obligations, and most or ad of its property to this new corporafion, which en tered upon business as a continuation of the old con cern. Amongst other acts of questionable validity, the notes of the expired corporation are known to have been used as its own, and again put iu circulation.— That tho cld book had no right to issue or re-issue its notes after me expiration oi its charter, cannot be de nied and tliat it could not corner any such right on its substitute, any more than exercise it itself, is equally plain. Iu taw ami honesty, the notes of tbe bank iu circulation, at the expiration of its charter, should have been called in by public advertisement, paid up as pre sented, and together with those on band, cancelled and destroy, d. Their rc-sssue is sanctioned by no law, and warranted by no necessity. It the United States be respens ble in their stock for the payment of those notes, their own benefit, is a fraud on the government, it’the United States is not responsible, then there is no legal resposibility in any quarter, and it is a fraud Oa file country. They arc tile redeemed notes of a dissolved partnership, but, contrary to the wishes of the retiring partner, and without his consent, are again re-issued and circulated. It is the high and peculiar duty ot Congress to decide whether any iurilier legislation be necessary for the security of die. large amount of public property now held and in use by file new bank, und for vindicating the right* of the government, and compelling a speedy and honest settlement with all the creditors of file old bank, public aud private, or whether the subject shall be left to the power now possessed by the executive and J udiciary. It remains to be seen whether file per sons, who as managers of the old buuk, undertook to control tiie Government, retained ilie public dividends, shut tlic ir doors upon a committee offiieHou.se of Representatives, and fiiled tbe country with panic to ucco nplish their own sinister objects, may now, as managers of a new bank, conhnuo with impunity to flood ihe countiy with a spurious currency, use file sevenmillions of Government stock lor their own pro fit, aud refuse to the United States all information as to present c< ndition of their own property, and the pros pect of recovering it into their own possession. The lesson taught by the Hank of the United States cannot well be lost upon the American people. They will take care never again to place so tremendous a p-jvver iu irresponsible hands, mid it will bo fortunate if they seriously consider the consequences which are likely to result on a smaller scale irom the facility with which corporate powers are grunted by their Htatc Gov ernments. I; is believed that the law of the last session regula ting the deposite banks, operates ontrouffyaud unjust ly upon them in many respects; and it ns hoped that Congress, on proper representation, will adopt the modifications which are necessary to prevent this con sequence. ... The report of file Secretary of War ad interim, and the accompanying documents, all which are herewith laid bclore you, will give a lull view of file diversified aud important operations cl that .Department during the past year. The luilitaiy movements rendered necessary by tne aggressions of the hostile portions ot tlic Heuimoie and CreeK uibes oi Indians, aud by other circumstances, res which it is since ascertained have been taken by Governor Call, there is reason to nope that they will soon be enabled to reduce the enemy to subjection.— In the meantime, as you will perceive Iw the report of Secretary, there is urgent necessity for further appro priations to suppress these hostilities. Hapily for the interest oflhumanity, the hostilities with the Creeks were brought to a close soon after your adjournment, without the effusion of blood which at one time was apprehended as ineviti ble The uncon ditional submission of the hostile party was followed by their speedy removal to the country assigned them west of the Mississippi. The inquiry as to alleged frauds in the purchase of the reservations of these In dians, and the cause of their hostilities, requested, by tiie resolution of the House of Representatives on the 1st ol'July last, to be made be the President, is now going on, through the agency of commissioners ap pointed fur that purpose. Their report may be expec ted during your present session.' The difficulties apprehended in the Cherokee coun try have been prevented, and the space and safety of that region and its vicinity effectually secured, by the timely ineasmrea taken by the War Department, and still continued. The discretiouary authority given to General Gaines to cross the Sabine and occupy a position as far west ns Nacogdoches, in case he should deem such a step aecsasary U/thc protection of the frontier, and to the fidflbtteiit off tbe ■tioulatioiis contained in our treaty wifll Mexico, and the movement subsequently made by that officer, have been alluded to in a former part oi" this message. At the date of the latest intelligence from Nacogdoches, our troops were yet at that station; but the officer who has succeeded Gen. Gaines has re cently been advised that, from the facts know n at the seat of Government, there would seem to be no ade quate Cause for any longer maintaining that position; and ho was accordingly instructed, incase the troops Were hot already withdrawn under the discretionary powers hefore possessed by him, to give the requisite orders for that purpose on the receipt of the insruc- tions, unless he then shall have in his possessions such information as shall satisfy him that the maintenance of the post is essential to the protection of our frontiers and to the due execution of our treaty stipulations pre viously explained to him. The national policy, founded alike in interest and humanity, so long and so steadily pursued by thjsGov- erniuent, for the removal of file Indian tribes original ly settled on this side of the Mississippi, to file west of that river, may he said to have been consummated by the conclusion of the late treaty with the Cherokees. The measures taken in the execution of that treaty, and in relation to our Indian affairs generally, will lul- Iv appear by referring to the accompanying paper— Without dwelling on the numerous and important to pics embraced in them, I again invite vour attention to tiie importance of providing a well digested and comprehensive system lor file protection, supervision, and improvement of the various tribes now planted in the Indian country. The suggestions submitted by file Commissioners of Indian Allairs, and enforced by the Secretary, on thissubjict, and also in regard to file establishment of additional military posts in the In dian country, are entitled to your profound consider ation. Hath measures are necessary lor the double purpose ol protecting the Indians irom intestine war, and in other respects complying with our engagement to them, and of securing our western, frontiers against incursions whichsOtherwise will assuredly be made ou it. The best hopes of humanity, in regard to the ab original race the welfare of our rapidly increasing set tlements, and the honor of the United States are deep ly involved in the relations existing between this Gov- rninent and the emigrating tribes. I trust, therefore, submitted m the uceompa- >wir, itot ii»i bank Jp« lakttaff-fitf Itaftsdl of large bodies of militia and volunteers. Vv'iui all these events, so far us they were known at die scat of Government before the termination of your last ses sion, you are already acquainted, and it is therefore onlv needful in this place to lay hefore you a brief sum mary flifwhat has since oceured. The war with file Seminole*, during the sunnier, was, on our part chiefly confined to the protection of cur frontier settlements, lrem the incursions ot file enemy; and as a necessary and important u.vau. lor the accomplishment of that end, to tin: maintenance of the post previously established. It* the course cl this duty, several actions took place, iu which file bravery and discipline of both officers und men were conspi cuously displayed, and which 1 have deemed it proper, to notice, in respect to file lormcr, by the granting of brevet rankfor gallant services in the field. Hut as tiie force of the Indians was not so far weakened by .these partial successes, as to lead them to submit,aud as their savage inroads were so frequently repeated, early mcar reive vour early and mature deliberation; aud that it mav issue in file adoption oflegislative measures a- dapted to the circumstances, and duties of the present crisis. You are referred to the report ot the Secretary ot_ the Navy <or a satisfactory view of the operations ol the department under his charge, during the present year. In the construction of vessels at the different navy yards, and in the employment of our ships ami squadrons at sea, that branch of file service has been actively and usefully employed- While the situation of our commercial interest in the West Indict required ; creator number than usual of armed vessels to be kept on that station, it is gratifying to perceive that the protection due to our commerce in other quarters ol the world lias not proved insufficient. Every efl’ort has been made to facilitate the equipment of the ex ploring expedition authorized by tlic act oithe last ses sion, but all file preparation necessary to enable it to sail has not yet been completed. No means will be spared by the Government to fit out the expedition ou a scale corresponding with file liberal appropriation for tiie purpose, and with the elevated character of die objects which are to be etlected by it. I beg leave to renew the rcoinmendation made in my last annual message, respecting the enlistment of boys in our naval service, and to urge upon your at tention the necessity of further appropriations to in crease the number of ships afloat, and to enlarge gen- • rally the capacity and force of the navy. The in crease of our commerce, and our position in regard to the other powers of the world, will always make it our policy and interest to cherish the great’ uaval resour ces of our country. The report of the Postmaster General presents a gratifving picture of the condition of tl e Post Office Department. Its revenues for the year ending the :>0th of June last, were $3,396,455 19, showing an increase of revenue over that of the proceeding year of $404,- 878 53, or more than 13 per cent. The expenditures for the same year were $8,755,682 76, exhibiting a surplus of $618,831 43. The Department has been redeemed from embarrassmant and debt, has accumu lated a surplus exceeding half a million of dollar*, has greatly extended, and is preparing still further to ex tend the mail service, and recommends a reduction of postage equal to about 80 per cent. It is practising upon the great principle, which should control every braueh of our Government, of rendering to the public the greatest good possible, with the least possible taxa tion to the people. The scale of postage suggested by the Postmaster General reco emends itself, not only by the reduction it proposes, but by the simplicity of its arrangements, its conformity with tiie Federal currency, and the im provement it will introduce into the accounts of the Department and its agents. Your uarticular attention is invited to the subject of mail contracts with rail road companies. The present laws, providing for making of contracts, are based up on the presumption that competition among bidders will secure the service at a fair price. Hut on most ol the rail road lines, there is no competition in that kind of transportation, and advertising is therefore useless. No contract can now be made with them except such as shall be negotiated before the time of offering, oral" terwards, and the power of the Postmaster General to pay them high prices is practically without limitation. | It would be a relief to him, and no doubt would con duce to the public interest to prescribe by law, some equitable basis upon which contracts shall rest, and restrict him by a fixed rule of allowance. Under a liberal act of that sert he would undoubtedly be able ed as to the whole, the number and compensation of persons now employed in tli duties, and the p gross expected to be made during the ensuing year, with a copy of the various correspondence decmca ne cessary to throw light on the subjects which seem to require additional legislation. Claim* have been made for retrospective allowances in behalf of the superin tendent and some of his assistants, which I did not feel justified in granting; other claims have been made for large increases in compensation, which, under all file circumstances of the several cases, I declined making without the express sanction of Congress. In order to obtain that sanction, the subject was, at the last ses sion, on my suggestion, and by request of the immedi ate superintendent, submitted by the Treasury Depart ment to the Committee of Commerce of the House of Representatives. "But no legislative action having ta ken place, the early attention ff Congress is now in vited to the enactment of some express and detailed provisions in relation to the various claims made for ffie past, and to the compensation and allowances deemed proper for me future. It is further respectfully recommended mat such be ing me inconvenience of attention to these duties by the Chief Magistrate, and such the great pressure of business oo the Treasury Department, the general su pervision of me coast survey, and the completion of the weights aud measures, if the works are kept uni ted, should be devolved on a board of officers, organ ized especially for that purpose, or on the Navy Board attached to the Navy Department. All my experience and reflection confirms the con viction I have so often expressed to Congress, in favor of an amendment of me constitution, which will pre vent, in any event, the election of the President and Vice President of the United States devolving on me House of Representatives and me Senate ; and I mere fore beg leave again to solicit your attention to me sub ject. There were various other suggestions in iny last annual message, not acted upon, particularly that re lating to the want of uniformity in the laws of the Dis trict of Columbia, that are deemed worthy of your fa vorable consideration. Before concluding this paper, I think it due to the various Executive Departments to bear testimony to their prosperous condition, and to file ability and in tegrity with which they have been conducted. It has been my aim to enforce in all these a vigilant and faith ful discharge of the public business, and it is gratifying to me to believe that there is no just cause of com plaint from any quarter, at the manner in which they have fulfilled the objects of their creation. Having now finished the observations deemod pro per on mis, the last occasion I shall have of communi cating with the two Houses of Congress, at their meet ing, I cannot omit an expression of the gratitude tvhi- h Is due to the great body of my fellow-cit;zcns, in whose partiality and indulgence I hive found en couragement and support in the many different aud trying scenes through which it has been my lot to pass during my public career. Though deeply sensible that my exertions have not been crowned with a success corresponding to file degree of favor bestowed upon me, I am sure that they will be considered as having been directed by an earnest desire to promote the good of my country; and I am consoled by the persuasion that whatever errors have been committed will find a corrective in the intelligence and patriotism of those who will succeed us. All that has occurred during my administration is calculated to inspire me with in creased confidence in the stability of our institutions; and should I be spared to enter upon that retirement which is so suitable to my age and infirm health, and so much desired by me in other respects, I shall not cease to invoke that beneficent Being to whose provi dence wc are already so signally indebted for the cou- tiiuiencc of Ids blessings ou our beloved country. ANDffi W JACKSON. Washington. December 6, IR!.'. 'itOiumAs From the Jacksonville Courier Dec. 8 THE WAR. By the arrival last Friday ot Cols. Warren an» Fleming, the latter of whom volunteered to join this expedition, we have been furnished with a detailed ac count of the last excursion of the army into the Indian country. The 11th ult. they left Fort Drane. under the command of Gov. Call. The Tennessee Brigade, in number about 1000, commanded by Gen. Armstrong; the Regulars, 250 friendly Creeks, commanded by Col Prieree; and the i.ast Florida Volunteers, all that could be spared from the Posts, between 100 and 800 in number, commanded by Col. Warren. The 13th, the Regulars, the E. F. Volunteers and the Creeks, crossed the Withlacoochee by fording and swimming, to scour the country to the source of that river aud seek the strong hold of the enemy. In cross ing the river, so great was the difficulty, three ol the Regulars were drowned. In the famous cove, they found no pleasing variety for marching, being mud and water, dotted with islands for encamping, with occa sionally small bodies of hammock. On most of the islands they found Indian wigwams. After marching through the mud and water, dec. and seeing no immediate prospect ot a change, Paddy Carr, who prided himself on speaking English, exetaimed, “tunph! This is a natural forlUud: for these devilish horse thieving, rascally Seminole?.” Gov. Call, with the Tennessee Brigade, marched up on the east side of the river. Accounts of the two skirmishes which this division of the army had with the enemy on the 17th and 18th, have been already pub lished' in the Courier. By the kindness of Col- Mills, we are luruish -d with the following particlars of their ur-rch, whi> h, a* it illustrates the incidents and uifScu! tic* of a march iu that utiktiowti home of the Sem inole, h e gladly publish- “On the J4th. we removed our cucansptuaui to tun ther small island, on which rve remttinee Hie I5th. Tli s day we were to have marched out of this cove. But early in tbe day. some of ihe friendly Indians, who were on the east'aid*- of the ! a .„j greater .-’ostaele* to be surmoun- river, discovered free hosiile Indians, one of '.v hich ! ifJ transporting pruvi-ioi-.s to the points, at a half. They showed their pleasure at the a p . preach of our forces by w hooping, leaping, ru n . niug. ami other similar antics. The diimouuud Regiment of Tennessee Vol. untoers on the right, tho Creeks ou the left, aod the Regulars iu the center, advanced to the charge. When within about 80 yard*, they r «. reived the cuetny ,s fire, aud advanced to about HI) yards, when they returned it, with such eff CC[ a* to drive the enemy back to the hammock.-. The Indians maintained their ground so obstiaate- ly, ehari.svhcn they ato*e Irons the gra-s and scrub to fire, the muzzles of dieir rifles were but a few feet before the then at whom they made the dead U aim. The hostile chiefs were heard several limes to say “carry off the wounded- never tniad the dnul ; here we uiu«t fight,” Alter deufeuiug ronr of ursis for a l*aif ^ hour, onr force* succeeded in dislodging thee, from their strong hold, aud they pursued them hotly, fig thing every step, for about two tni| ei> iu hammock, swamp, and marsh, through tvbich thev were frequently compelled to wade in 3 0 r 4 feet water &i mud". Here the enemy hadgreat- lv the advantage by knowing the fordable paste*. While to pursuit, they passed through twocoru- fields, the largest of which embraced about 150 acres. .. . Alter having gone al.otil two nm*'s, the cneit^ were arrayed on 'he opposite ride of a uar.ow creek or I'ngoou. which extended each way fur ther tinn the eye could icr.rh. Our forces made several u<-*urcessf«l attempts tn cross the lag«* 0( T hose, who made the attempt, were one 111011,61,1 on a bog and the next up to the arms in mau ,nd water, aud constantly exposed to the most deadly fire of the enemy In at the opposite side. The chivalric Majot Motliuc, one of fi, 0 Creeks, was shot through tlic heart, iu boldly at- tempting, at the head of a party of the Creeks, to cross. On receiving the shot, his last words to Capt Watson; oil falling were—“Save my bo- dv. "’ Unfortunate a* he was brave, he had «d- viinc-d too tar to enable auy ens to do so, and he was scalped. ... Finding it impracticable at tr.at late uour, (4 o’clock iu the evening) t<» pursue ihe enemy b e vond this natural barrier, (though fordable in >,.me places by the iudians) iu the face of the enemy ou the opposite side they returned to the camp'. During the engagement in<*re wer* ten of Col. Fierce’s division killed and twelve or fo irteeo wounded, several of whom have sun0 dud. (Jf the enemy, from 14 to IU were found dead. .. . 'Flic death of the brave Mouter was much rs- „r e tted by a!E He bad he* n educated at West Point, aud. on leavtug. was given a cornrn;,rim; the army. But he preferred returning to the. home aud independent file of his I 1 avli-. ri. Like many other brave and chivalric rjiirsls, bis w*i> tbe .iiUfoisuue to take its flight from tfte swamp ,„i.i hammocks of FionJi.. ‘nglonous death!— He met it with a simple request, to save hiiu from disgrace nd to give his weary spirit rest in the other world. , , „ _ , . . The Tennessee Brigade* fully sttnamed ihn: s;ate reputation. All 'he oflio rs end men en gaged in rile battle are represented to have fought vi ,1 a* any General could wish. \i! who wore preseuc represent this as a fcani fought batite. Thu-e who were with “thi hem of the Great Bend,” say, that ouring the Creek and Scniit'ole campaigns, there vt us no such eoutc-tiug inch bv inch, the ground for such a ieugili of limo. This is attributed to their *U|.e: nor knowledge of tbe use of ure arms, their lof- rtier success, aod ihe despair by which they aid urged to any sacrifice. • he iu fluent s ot 1 his l,.st coostticratn u was pa ticuiarly exemplified *u two circumstances.— Oue ol the enemy, after shooting away bt* an:- inunmen, with tbs iastload m his rifle, ascended a tree to have a more deadly aim. Alter firing, h* which otic of the Tennessee volunteers t*as w‘ou.»<lcd. he was brought to the ground by tbs f tUi rifles of the wounded man’s companions. Uv *v»cms not to have regarded hft, :f he couid ..vi&te it b\ the death of an enemy- The eve- :.i- * before the battle nf the Fl>'. they took irom i.ui c .am several, of tho best horses, aud. cutting th ir throats, led them by the trni ou which our forces must pass apparently, to show tln-tr iu»o- Iqucc and hardihood. Oue of the friendly (’reeks, «ho was capiu.-ac iiv some of the hostile Indian* uear For* Draue, Mini, after being with them several days, made that 'he hostile Indians said -.pc, sav*, ••thev r.ould never cross bauds with white men ajta-o in friendship.” The dav after the battle, the army marched for Volusia. wiii«b place, passing through I’ikihh-s* ha atii! the Okehumpkee hammock, they readi ed t-Vid.iv. the 25th. On their way thry saw vecal trails of from .50 to 500 of the enemy lea- ilinu south T heir horse# w» rc so jaded as to forbid pursuit. From the present prospect the war is not like- 1» soon to terminate- The enemy is-apparently :i«. f,.r from being subdued and 1 emoted, as they vn-re a tear stacc. By driving them south the w at is protracted. More time is necessary ” have required the active employment of nearly our to secure the services of most of the rail road compa- —L-i- -—»— *■ — :—1......... ,,.n Mu! nies, and the interest of the department would be thus or Call, who, a* Comuiander-ui-Eluol ot Uie 't errito rial uiihtia, had been temporally invested with the com mand, an atopic force, tor die purpose of resuming of fensive operations, in the most clHcient *ianii*r, as BOOB as the season should permit. Major General Jesup was also directed ou conclusion of his duhea in file Creek country, to repair to Florida and assume the confinand. The result of tbe first movement made by forces un der she direction 01 Governor Call, in October lust, as detailed in file accompanying papers, excited much surprise and disappointment. A lull cxpiana'Eon Ilau been required of the causes which led to the failure of .thadbiuvement, but ha* not yet been received. Iu the 'me an true, as it was feared iliac the health of Governor Cali, whe was understood to have suffered much from sickness, might not to be adequate 10 the crri.s, and as Major General Jesup was known to have reached added to the others hv a toint resolution. Florida, that officer was directed to assume ’tae cow* The care and correspondence as to all mand, and to prosecute all needful operations with the utmost promptitude and vigor. From the force at Us moitic exchanges »>f the country. It if now well as- the I cetuincd that toe r eal domestic, exchanges performed, . . i through discounts, by the I'Uited Slates Bank aud its disposal, and the dispositions he has made and is in- r— ~ ^ ~ j —■—“ twemy-five-brahekrth wtrtrst feast one third kgs than j strutted tomaltCijand fro tactile very efficient cwyia- advanced. The correspondence between the people of the U- nited States and the European Rations, and particular ly with the British Islands, lias become very extensive, and requires the interposition of Congress to give it security. No obstacle is perceived to an interchange of mail* between New York and Liverpool, or other foreign ports, as propo.-ed by the Postmaster General; on the contrary, it promises, by the security it will af ford, to facilitate commercial transactions, andgive rise to au enlarged intercourse among the people of the dif ferent nations, which cannot bat have a happy effect. Through the city of New York most of the corres pondence between the Canadas and Europe is now carriedon, and urgent representations have been re ceived from the head of the provincial post office, ask ing file interposition of the United States to guard it from *he accident* and ios*cs to which it is now sub jected. Some legislation appears xo be called for, as well as our own interest, as by comity to the adjoining urcs'were taken for placing at tlic disposal of Govern- British Provinces. or Call. who. as Commai;der-ii:-Ul:iei of file Territo- The expediency of providing a fire-proof building for the important books and papers of the Post Office Department, is xvorthv of consideration. In the pre sent condition of our Treasury, i is neither necessary nor wise to leave essential public interest exposed to so much danger, when they can so readily be tnadu secure. There are weighty considerations in the lo cation of a new building for thi Department in favor of placing it near the other Executive buildings. TTte important subjects of the survey of the coast, and" the manufacture of a 'standard of weights and uicisures of the different custom houses, have been in progress for some year.*, under the general direction ol" the E xeeutive, anil tho immediate superintendence of a gentlemen possessing high ' cientihc attainments.— At the last session of Congress, the making of a set of weights aad measures foreach State in the Union was these sub jects has been devolved on the Treasury Department during the last year. A special report from the Sec retary of the Treasury will soon be communicated to Congrem, which will sfejw what has been accomplish* threw down his rifl- and said, that the He mmoles desired to make peace aud fight uo longer. The ("reel* Indians were alarmed aud ran ofi. A par ty under Capt. Watson pursued after ihcin the whole day without being able to overtake then • At first wc were much elated w i:b the idea of having peace. Hut from subsequent occurrences wo were convinced, that this offci of peace was a mere ruse to delay the army a day, and g iin time to make belter preparation .or our recep lion. *-Ou the I6th. our division marched, and. al ter proceeding about five tnih *. caiuc 10 a neck running through a swamp which v ; s found m be a day’s work to cross. This was u.:;-• rtif F;c:i cc-’s Creek. W e encamped on a fine h!,,b pine i>-r cm “The 17th, xve marched tbrott.k a fine open pine barren, passed some Indian !i‘ui,es wludi b id been recently occupied, xttd f.f otic. f.-:'tn*.l •* cart and a 6 lb. ball, which'-had prntts.t>!y bet ;- fired from Fort Cooper iu tlii* vicini;.. A' nr-on we heard a heavy firing fp ihe e>.- , by wjiu'ii. we knew that the Tennessee troops were: ee.gii ged with th" enemy- Shortly alter, our spies discovered five hostile Indians. Inti they ran iu .0 a h mV nock on the borders ol a beautiful lake. >iid eluded al! pursuit. Wc encamped near this lake. ••Friday. IStli. xve left a camp guard, and mar •• ied round the head of tlic lake and passed 1:1 'iiigil swamps, marshes, and chains of lakes. 1 1 diati village*. &c-—and suddently and unex- -.vUiih -I'tev requirci:. and all the difficulties increased Until son** „! the present campaign increased umu different plau is pursued than the ooe of spending one week in pursuit of the enemy ami ihe next in returning fur provisions. Oseola will find 0" difficulty in making good hi* five years, r or tba credit of our government, he ha* been able te« long to set at defiaure tho whole power o' the United Siates. Gov. Gail has received orders to turn the co:a- nt.iud over to Gen. Jes«p. An expre s. wiih a guard of 4ft for Gen Jf- li* "d of Wat vjm ring bis cninipani ficuriie* beside* *s •mi gcneririlt tun ic will di »:iatu' : frurn s»no;i ami:'.*' ja-Mi l‘“vt and dr pot m pec ted I y came to the bank of tho river once more, where we found an Indian canoe. W wore or- -- ^^ hrought ag , ilM t them- ilered to countermarch to the camp, as our mstuc " u " ■> ” tions were to scour the west side of tiie river aod not to cross it. While the Pioneers were in the ae-t of cutting up tho canoe, a heavy fire x\ ;t* o • ft IMack-Creck, Saturday < ;.mp. ps nothing ha* been :.;s arrival in Florida. Da- : ; >v. < "all has had many dif- ;;c*». with which to contend. Ii has been suggested that Turin!’ inquiry. Wc learn dial tho President bas given instructions to establish a ; cove of the Wuhlscom hec, till the war 1* terminated- t‘v :: 11 nc.-lcr of •!,-.• President, a depot is to bec*- irtbitsbed uu tile t as-i side of the St. Johns at Vo lusia. Lc» three or {1 others be ostnl li*hcd at pro per points, tiinr ihe etiemy’s strong hold, o->t mile-, di-uant. a-d bring as many thousand tne" to operate in different bodies, with sufliriect mentis «.f traiisjiortatim;. and wi:h skiit’t- man agcrncut, the war w ill soon be carted Then the enemy- could soon be brought to terms wh ; -her powder was scarce or not. Untii some so*. course is adopted, the enemy, after fighting wx ,l# they have the advaiige. will elude body "f penod ou us by the bostilcs on the opposite bank. A'c in trehed back to catnp and resumed our march up the river. At 2 o’clock wo heard a heavy fire again to ihe cast. “Saturday, 19th. xve inarched on from ouren fMinpmpirt on the banks of the Withlacoochee, aad crossed the river at the place where tho Tam pa Bay road crosses it, aud encampe d in the forks of the rivers. “Sunday. 20th. marched, aud after crossing the Littie Withlacoochee, met a detachment of the Tennessee Brigade. We eucatnped on Dade’s b title ground. -.."-'loud ty. 2lst, we raarehed on and formed ;« junction with tho Tennessee Brigade, aud west 10 Wahoo Swamp.” The two division of the army uuited. reached the place, where the Tennessee Brigade fought the enemy three days before, ahout II o’clock in the morning. Here they found a large body of th* enemy ready to receive them. They were raogod around in fpeut of a hummock shaped like s cresent for a distance of at least a mile and FROM THE ARMY. By itn arrival from last week* we Icnro that Gen. Jesup with a force of about 400 inco composed of regular troops and Alabama Vo.un- let-rs, hail arrived at Volusia direct from I :inl P. Bay. Ou arriving at the Ocfciawaha he surpri sed a gang nf uegrues 43 in number, and t ,0 the whole of them prtsouera These negroes"* apart of those belonging to Col. O. ri. hr and w ere captured by the ludians in Decembe^ last They are mosily women and children-—- An.Indian was also taken hv his advauC’’ (ri* ar . \Ve umierstaud that this Indian on finding lh“ could not elude pursuit, and must be takei* (I avored tn puss himself off as a friendly who bad strayed from the main body. e° . lust; he was very glad to sec his shook hand* with all around him- , e tr r ntu was soon discovered ami he was secured, r* these uegroes and the Indian much v ‘‘ 1 “ a . h '* formation has been obtained as regards the p tion, movements and future operations o ^ diaus. and alio their services as guides- . negroes state that the day previous t0 «, tafeoD* ao express bad been EBP* to T<*P