Below is the OCR text representation for this newspapers page.

- ’ Vie bad vanished. Not a trace of him * tin titted, and the water bad left no token iii.iiihl uTtt. a lew dro|i« of dew upou the -lyrile-spTSy."WTHWL altera moment'* pause vtoui-.uneut. Viola kissed olf, and then I the graceful branch in her bosom, i . t.iis moment, the music of the pipe .«- nj,!., iie|r<l from *he neighboring tiers; i • train wa* now more remarkable and lii ii*r (inn before. A brilliant humifiiug iir I ~ho; from the threat, ams hovered above ti ■ and taer» ol the V i-e. None knew what to expect; but after several minutes, all Mailed and graapnd at those bedside them. Toe Va.e itself was now changing its form. A md the bowers appeared a human lace; r ues red and white, bloomed o > the etieeks, the lips were like a blown carnation; the non brown bait hung in 'dusters on the neck, aid was cm true I w.tli flowers; tue alaba? te> si dp ure itself disappeared, and i ■ form .‘spa.lied, ail became that of a ligui suitable to the lovely head. The vision ap peared to uive v *ry gently to the sound of t ie it isie. and t ) lie so s igiit. mat it might have risen into the air upon the evening broe/.e Suddenly one of the ladies ex c at ne l —-‘lt is viola!” and Viola herself rose hi a-n.izem uit from the turf, and con fronted her image. They were exactly similar, except that when the setting sun shone oil the neck and shoulder of the phantom, some of the spectators thought tiie llesti was slight y transparent- V'iola w is determined not to he daunted by the eifo t of puver to which she had challenged th ■ Magician, and looked .at the figure and smiled. The blooming face smiled 100, aed bent slightly towards her; and the ladv could hardly refrain from Murmuring, while s te beheld the copy of herself, “flow ex quisite! How lovely!” With a swift im pulse she stepped forward to touch the face with Iters. The music made a loud and vehement turn, and though to the bystan ders it seemed that Viola kissed the mouth of Viola, tire lips and lace that were present to tile eve and feeling of tha maiden be came at the instant those of the Magician. She trembled t ltd shrunk back. The music from :he thicket changed its and char acter. . .1.1 became more irregular anil plain tive. The in igic form lost its animation; the flowers ami the alabaster returned, and the N/rnplt and Iter thyrsus were fixed again in sculptured beauty. Viola stepped close to the Vase, and lent her brow among the flow rs ou the brim, appneatly sunk in re flection. The others expressed their won der in hasty words and broken sentences, a.. I when they could turn and look quietly round, the Magician was again in their cir cle. Viola raised her h“ad with a thought ful suite still resting her hand upon the V. an ! thanked him for his labor. “But,” sa.d on. of the party to him, “could you r re:se the charm, and turn Viola iuto a vase ?” “That also I would endeavor to do, if I ha i l erjjPperinissior..” “V vt have it,” she answered, “nrovided yon < ill not leave me in that shape, beautiful as ! is. fur 1 am more accustomed to my o wo.” ••No,” he said, “if 1 may but approach tljevase and touch it. 1 can answer for again ace imnlishing your transformation." She nodded Iter assent cheerfully, again he touched hi* instrument. He stood be fore her. and fixed his deep dark eyes on her<, whi c h hardly sustained t v, e look. To the thouc 1 of those around, the forms of both exoa’>,|ed and grew half luminous in the twilight. The music which he now produced, t ongh not loud, was so and melting that it passed through the very hearts, and brains and limbs nt all, and trembled in every fibre of their fingers. It swelled a-d complicated its volume, and seemed to grow upward fro u the pipe, and spin around like i ling 1 ' pillar between earth and *kv And now it was heard to come, not merely from the instrument, but from the hands, and head, and whole figure of the nlnver, and every hair of his long black locks gave forth a stream of melody; Viola was rooted to the ground, but shook and wavered like a tree in a strong wind. In a few seconds the breathing, glowing maiden «mk into a flower-crowned vase, as graceful ' noble as the other which it completely i .Me I r The Mtg'cian seemed exhaus ts and iv his efforts and fell snftlv on the grass ivr '••* pipe beside him. One of Vio a’s • c.ids whispered her companions, “Now were it a jest to prevent him front approach i id thus retain her for a time as she is.” All assenting, and forming a ring between t’ ; o \T p-oiati and the transformed damsel, they dance I laughing around, .so ns to make it impossible for hint <0 approach. He • v/e l at them a moment, rose, and took water in his hand from a fountain n“ ar him, :nd scattered it over them. Instantly i- iev sank in sleep on the green turf, tind the last lon ray of sunset fell on their repose. i.Te then begun to whisper music on his pipe, rather than to play it, drew near gently lo tha vase, and gathering a sprig of myrtle o ,in (Vp. garland, placed it next his heart. Ti e lady swiftly emerged from her enehant niep:, and stood beside him in the clear night. Viola. can voti lorgive me ?” • I’>r w at trim ’ressinn V’ she enquired “T have beep but for a few moments in a dream ” *‘\V,i* it a' inn one?" said the Magi clan. She cast down her eyes, and it was a mo jn-’Ui hel"o -e she replied. ‘•Not painful. But what is your offence ?” “Have yon not Ins vnnr tnvttle ?"’ She felt for it, and blushed to find it mis sing. “Was it for this that you said it was ne cessary von should approach me in order to restore me to mv present form ?” lie colored >mi!ed. and said, “von have guessed well. Bn! you have not yet granted me “anion.” She h“ld out h"r hand ; he pressetl it to hi* lios- and she qurs inned him anew. ‘ Tell me whv von selected rue for the object of your art instead of calling some g> ,H v *tr legion of phantoms out of noth ing ?” •‘Have you ” he replied, ‘nn feeling in Vaor hear* which makes von of greater im portance to me than the fairest spirit that over *h it from t tat to earth He paused Tor an i-tst io» : an I as s' e mn *e no answer, h continued: 1 could indeed have called ti multitude o r h dogs out of oir. all differ ent, but 1 could n >t have give any of them a human heart to love me: and von are the first 1 have found whom T cont.l love, and having in vourself answering affection.” “Will you not release our friends ?” asked Vt and >. “They will awake,” said he, “at the rising of the moon.” When the mo in rose thev awoke, but Viola md the Magician had departed from the I'alace of Morgana Their friends fun id T'-,sarlno in their ears the fragments of aeh mi h"‘W *h“V imagined th<*v Ol'lst ■ "g 1 during tha'r sleep, and of which r vis the purport : - 1 1 m » t t ! Clegs' teir./i tv >il!y **>f plcAfflt dr**vnsj Though change ant] sorrow wc now shall stray. Where lime no longer a son-flash seems. 2 Away fr.im the blooming hours of joy That ne’er were loaded wtlh care or pain ; From a land where earth was all a toy, Ami enough was real, enough for mau. 3 We shall struggle, and toil, an-' mourn. t)nr sky will oilru be dark above, But within us the flame ol song shall burn And still it will be our bliss lo love. PRESIDENT'S MESSAGE. f Concluded.) Ala ge and highly respectable portion of ■ iir banking institution* are. it affords me ileigned pleasure to state, exempted trom . blame on account of this seeonil delin ( icttcy. They have, lo their* great credit, mi only continued to Intel then engage ments. but hive even repudiated the “rounds of suspension now reported to.— It is only by such a course tuat the confi dence and goodwill of the coo muuity can be preserved, and, in the sequel, the best in terests olthe institutions themselves promo ted. New dangers to the hanks .are also daily disclosed from the extension of that system ••( extravagant credit of which tiny are the pillars. Formerly our foreign commerce was principally founded on an exchange of coni uiodites, including the precious metals, and leaving in its transactions but little foreign debt. .Such is not now the case. Aided by the fseilities afforded by the banks, mere credit has become too commonly ihe basis ol ir-ule. Many of the banks themselves, not content with largely stimulating this system among others, have usurped the bu siness. while they impair the stability, of the mercantile community: they ha>e be come borrowers instead of lenders; they es tablish their agencies abtoad; they deal largely in stocks and merchandise; they en cour ige the issue of State securities until the foreign market is glutted with them; and, unsatisfied with the legitimate use ol their own capital and the exercises of their lawful privileges, they raise, by large loans, additional means for every vsriety of specu lation. The disasters attendant on this devi ation from the former course of business in this country, are now shared alike by batiks and individuals, to an extent of which there is perhaps no previous example in the annals of our country. So long as the w illingness of the foreign lender, and a sufficient export of out productions to meet any necessary partin' payments, leave the flow of credit undisturbed, all appears to be prosperous; hut as soon as it is checked by any hesita tion anroad, or by art inabi'ity to make payment there in our productions, the evils of the system are disclosed The paper currency which might serve for domestic purposes, is useless to pay the debt due in Europe. Gold and silver are therefore drawn, in exchange for their notes, (rout the banks. To keep up their supply of coin, these institutions are obliged to call upon their own debtors, who pay them principal ly in their own notes, which are as unavaila ble to tbent as they areto the merchants to meet the foreign demand. The calls nfthe a.oiks, therefore; ':n suelt emergencies, ol necessity, exceed that demand, and pro duce a conesponding curtailment sf their accommodations and of the currency, at the very moment when the state of trade renders it most inconvenient to be borne. The intensity of this pressure on the com munity is in proportion to the previous lib erality of credit and consequent expansion of the currency ; forced sales of property are made at the time when the means of pur chasing are most reduced, and the worst calamities to individuals are only at last ar rested, by an open violation of their obliga tions by the banks, a refusal to pny specie for their notes, and an imposition upon the community ofa finetuating and depreciated currency. These consequences are inherent in tire present system. They are not influenced by the banks being latgt: or small, created by National or State Governments. They are the results ol the irresistible law sos trade and credit. In the recent events which have so strikingly illustrated the certain ef fects of these laws, we ha»e seen the bank of the largest capital in the Union, estab lished under i National charter and lately strengthened, as we were authoritatively in formed, by exchanging that lor a Stale charter, with new and unusual privileges— iua condition too, as it was said, ol entile soundness and great prosperity —not mere ly unable to resist these effects, but the first to yield to them. Nor is it to be overlooked that there exists a chain of necessity dependence among tlies? institutions which obliges them, to a great exfont, to follow the course of others, notwithstanding its injustice to their own immediate creditors, or injury to the par ticular community in which they are placed. This dependence ol a bank, which is in pro portion to the extent u! i ,s debts for circu lation and d<-posites is not purely on others in its own vicinity, but on all tho‘ e connect it with the centre of trade. Dis tant ha ks may fail, without seriously affect - in-i those m our principal commercial cities; hut the failure of the latter is felt at the ex tremities oft In* Union. The suspension at New York, in 1837, was every where, with very few exceptions, followed as soon as it was known; that recently at Philadelphia immediately affected the banks of the South and West in a similar manner. This de pendence of our whole banking system on the institutions in a lew large cities, is not found in the laws of their organization, but in those of trade and exchange. Th., banks at that centre to which currency flows, and where it is required in payments for mer chandize. liohi the power of controlling these in regions whence it comes, while the latter possess no means of restraining them, so that the value of individual property, and the prosperity of trade, through the whole interior of the country, are made to depend on the good or had management of the bank in'.: institutions in the great seats ol trade on the seaboard. But this chain of dependence does not stop litre. It does not terminate at Phila delphia or New York. It reaches across the ocean, and ends in London, the centre of the credit system. The same laws of trade which give to the banks in our principal citi'-s power over the whole banking system of the United States, subject the former, i in their turu, to the money power in Gr at Britain. It is not denied that the suspension | of the New York banks in 1837, which wa* followed in quick succession throughout the i Union, was produced by an application of that power; and it is now alleged, in exten j uatinn of the present condition of so large a portion of our banks, that their embarrass ments have arisen from the same cause. From this influence they cannot now en tirely escape, for it has its origin in the ] credit currrn'des ol the two countries ; it is i strengthen"''! by the current of trade and exchange, which is centred in London, aud . is rendered almost Mrrwiflrild* by the large debts contracted there by our merchants, our bank*, and our States, it is thus that the introduction of anew bank into Ihe most distant of our villages, places Ihe "bu siness ol that village within the influence of the inonev power in England. It is thus that every new debt which we contract in that country, seriouslv affects our own cur rency, and exteuds over the pursuits of our citizens its powerful influence. We cannot escape from (his by making new banks; great or sura.l, S'ate or National. The same chains which bind those now existing tu the centre of this system of paper credit must equally fetter every similar institution we create. It is only by the extent ta which this system has been pushed of late, that we have been made fully aware of its irresisti ble tendency to subject our own batiks and currency to a vast controling power in a for eign land---»ml it adds anew argument to | tlie-e which illustrate their precarious situ ation. Endangered in the first place by their own mismanagement, and again by the conduct of every institution which connects them with the centre of trade in our own country, they are yet subjected, beyond all this, to the effect of whatever measures pol icy, necessity or caprice may induce those who control the credits of England to re sort to. I mean not to comment upon these measures, present nr past, and much less to discourage the prosecution of fair com mercial dealing between the two cour.tries, based on reciprocal benefits ; but it having* now been made manifest that the power of inflicting these and similar injuries is, by the resistless law «fa credit currency and credit trade,equally capahle of extending their consequences through all the ramifi cations of our bankine system, and by that means indirectly obtaining, particularly when our bauks are used as depositories of the public moneys a d..r.gerous political it.flu cure in the United Slates. I have deemed it my duty to bring the subject to your no lice, and ask for it your-erious considera tion. Is an argument requred beyond the exposi tion of these facts, to show the impropriety of using our banking institutions as depositories of the public money ! Can we venture not only to encounter the risk of their individ ual and mutual mismanagement, b t, at the same time to place our foreign and domes tic policy under the control ot a foreign moneyed interest ? To do so, is to impair the independence of our Government, as the present credit system has already im paired t’tc independence of our banks. Jr is to submit all its important operatio; s, whether of peace or w ar, lo be controlled or thwarted at first by our own banks, and then by a power abroad greater than them selves. I cannot bring myself to depict the humililation to which this Government and people might be sooner or later reduced, if the means for defending their rights are to be made dependent upon those who may have t e most powerful of motives to im pair them. Nor is it only in reference to the effect of this state of things on the independence of our Government, or of our banks, that the subject presents itsell for consider tion. It is to be viewed also to its relations to the general trade of our country. The time is not Ion? past, when a deficiency of foreign crops was thought to afford a profitable market for tue surplus ofuur industry, but now we wait with feverish anxiety the news ol the English harvest, not so much from motives of commendable sympathy, but tear ful h-st its anticipated failure should narrow the field of credit there. Does not this speak volumes to the patriot 1 Can a sys tem he beneficent, wise or just, which cre ates greater anxiety fur interests dependent on foreign credit, than for the general pros perity of our own country, and the profita ble exportation of the surplus produce of our labor ? The circumstances to which l have thus adverted appear tome to afford weighty rea sons, developed by late events, to be added to those which I have ou former occasions offered, when sttbmifing to your better knowledge ami discernment, the propriety of separating the custody of the public money from banking institutions. Nor has any thing occurred to lesson, in my opinion, the force of what has been heretofore urg ed. The only grounds on which that cus tody ca tbe desired by the banks, is the profitable use which they may make ol the money. Such use would be regarded in individuals as a breach of trust, or a crime of great magnitude, and yet it may be,rea sonably doubted whether, first and last, it is not attended wi*h more mischievous con s quencc.s, when permitted to the former than the latter. The practice of permit ting the | üblic money to be used by its k iep ets as here, is belli ved to be peculiar to this country and to exist scarcely any whete else. Toprocuieit here, improper influ ences are appealed to ; unwise connections are established between the Government anil vast numbers of powerful State institutions ; other motives than the public good are brought to bear both on the Executive and Legislative departments, and selfish com binations, leading to special legislation, are formed. It is made the interest of banking institu tions and their stockholders throughout the c7.nion to use their exertions for the increase of taxation and the accumulation or asur plus revenue; and, while an excuse is affor ded, the means are furnished for those ex cessive issues which lead to extravagant trading and speculation, and are ( he torerun ners of a vast debt abroad, a.ud a suspension of the banks at home. Impressed, therefore, as I am. with the propriety of the funds of the Government being withdrawn from the private use of ei ther banks or individuals, and the public money kept by duly appointed public age. is and believing as 1 do, that such also is the judgment which discussion, reflection and experience have produced on the public mind, I leave the subject with you. It is, at all events, essential to the interests ol the community and the business ol the Govern ment, that a decision should be made. Most of the arguments that dissuade u* from employing banks, in the custody and disbursemet of' the public money, apply with equal force lo the receipt of their notes for dues. The difference is only inform. In one instance, the Government is a creditor for its deposites. and in the other for the notes it Ito'ds. They afford the same op portunity for using the public moneys, and equally lead to all the evils attendant upon it, since a bank can as safely extend its di counts on a depnsite of its notes in the hands of a public officer as on one made in its own vaults. Oil ihe other hand, it would give to ihe Government no greater security, for, in case of failure, the claim ol the noteholder would be no better than that of a depositor. 1 am aware that the danger ol inconveni ence to the public,and unreasonible pres sure upon sound hacks, have been urged as objections to requinng the payment of the revenue in gold and silver. These objections have been greatly exaggerated. From the best estimates we may safely fix the amount ot specieinthe country at eighty-five mil lions of dollars, aud the portion of that which would be employed at any vue time in the receipts and disbursement.- of t/ie Govern ment; even ii the proposed change w■ r; made at once, w-.ii ld not, it is now, alter toi ler inveetig-ai on, b lievud, exceed tour or five millions. It I lie «m ,-e were giadual, several yea s would il.-qs'r before fnat sßin would be required, wuh annual op(*orluni ties in the meantim«to .tiler tlie law. saoiild experience prove it to be oppressive or in convenient. The portions ol Ihe coutmuni ly on wboss ba-mess the change wool t im mediately operate, are i omparaiiveiy small nor is it believed that its effect would be m the least unjast or injunoi s lo them. Inthe payment ol duties, which consti tute by far the greater portion ot the reven ue, a very targe proportion is derived (ioin foreign commission houses and agent* of foreign manufacturers, who sell the goods consigned to then , generally, at auction, and alter paying ihe duties out ol t lie aval s, remit t' c rest abroad in specie or its equiv alent. That the amount ol duties should, in such cases, he also returned in specie, can hardly be made :> matter of complaint. Out own impoitiug merchants by w hom ihe residue ol the duties is paid, are not onl> peculiarly interested in maintaining a sound currency, which the measure in question will especially promote, but are, liom the nature of their dealings, hesi able to know when specie wi-l ho reeded, and to procure it with the least dificultv or sacrifice. Re siding. 100 s'tuost universally in places where the levenue is received and where the drafts used by the Government lor its disbursements must enure .irate, iiitv Ii vt every opportunity to obtain and ’ use them in I lace ol specie, should it be for their iu t.-resi or convenience. Ol the number ol these drafts, and the facilities they may af ford, as well as of iiie rapidity with which the public funds are drawn and disbursed, an idea may be formed Irotn the fact that, of nearly twenty millions ol dollars |>aici to collectors ami receivers during the present year, the average amount in their hands at anyone time has not exceeded a million and a half; and of the fifteen millions receiv ed by the collecto.i of New York alone du ring the present year, the average amount held by him, sut.jc ct to draft during each week, has been less than halt a million. The ease and safety of the operations of the Treasury in keeping the public money are promoted by the application of its own drafts to the public dues. The objection arising from having them too long outstand ing might be obviated, and they ye made to afford to mere! ants and banks holding them an equivalent for specie, and in that way greatly lessen fheamount actually inquired, it ill less inconvenience will attend t e re quirement of specie in purchase of public lands. Such purchase, except when made on speculation, are. in general, but single transactions, rarely repeated by the same person; and it is a fact, that for the last year and a half during which the notes of sound banks have been received, more than a tno iety ol these payments has been voluntarily made in specie, being a larger proportion than would have ... eu required i" three years under the giaduation proposed. It is moreover a principle than which none is better seltl; b !;v experience, tiia. the supply of the precious nieials w ill always he found adequate to the uses for which they are requited, 'i hey abound in coun tries where no other currency is allowed. I a our own States, where small m tes are ex eluded, gold and silver supply their place. When driven to their hiding phu es by hank suspensions, a liit'e firmness in the commit nity soon restores them iu a sufficient quail tity for ordinary purposes. Postage and other public dues have been collected in coin without serious inconvenience, even in States where a depreciated paper curren cy has existed for years, and this, with the aid of Treasure notes for a par'of th* time, was done without interruption during the suspension of 1837. At the present mo ment, the receipts and disbursements of he Government are made in legal currency in thela-gest portion of the Union. No one suggests a departure from this rule ; and it it can now he successfully carried out, it will be surely attended w ith even less difTi c dty when bank notes a>e again redeemed in specie Indeed, 1 cannot think that a serious ob jection would any where be raised to the receipt and payment of gold and s.lver iu all public transactions, were it n n t from an ap prehension that a surplus in the Treasury might withdraw a targe portion o! it limn circulation, aid 10.-U ii up unprofi'abl in the public vaults. It would not, m my o pinion, be dit-rolt lo , irvci.t such an incon venicucc. from occurring ; but the authen tic statements v lot h I have alia ady si.l,mil ted toyon in regaid to ihcaeiual rmotiut in the public Treasury at any one time during the period embraced iu them, and the lit.l *- probability of a different state of the Trea sury for at least son cye rs to con e, s: in to render it unnecessary to dwell upon it. Congress, horeover, as I have In (ere tb servetl, will in t\\ ry year have an opportu nity to guard against it, should the occur rence of’ any circnmst;mc< s lead us to ap prehend injury from 'his source. View ing the subject in all its aspects, I cannot believe that any period will be more susnic cous than the present lor the adoption ofal measures necessary to maintain the sancti ty of our own engagements, and to aid in securing the com nunily that abundant sup ply of the precious metals wh'cli adds so much to their prosperity, and gives such increased stability to all their dealings. In a country socommercial asours, banks, in some foim, will piobably always exist; but this serves only to render it the more inc mbeut on us, notwithstanding the dis couragements of the past, to strive, in our respective stations, to mitigate the evils they produce—to take from them as rapid ly as the obligations of public faith and a ear ful consideration ol the immediate interest of the community «ill permit, the unjust character of monopolies—to check, so lar as may be nracticablc by prudent legislation those temptations of interest, and those op portunities for their dangerous indulgence, which beset them on every side, and to confine them strictly to the pt rfortnance ol their patamount duty—that ot aiding the operations of commerce, rather than con sulting their own exclusive advantage.— These and other salutary reforms may, it is believed, be accomplished without the vio lation of any of the great principles of the social compact the observance ol which is indespensable to its existence, or interfering iu any way with the useful and profitable, employment of real capital Institutions so framed have existep and still exist elsewhere, giving to commer cial intercourse all necessary facilities, without inflating or depreciating the cur rency. or stimulating speculation. Thus accomplishing their legitimate ends, they have gained the surest gnarmtee for their protection and encouragement in th good w ill of the community. Among- a people so just as ours the same results could not fail to attend a similar course. The direct supervision of the Bauks belongs from the nature of our Gov -rmneni, to the States who authorize liiem. It is to there Leg islature* that the pebpb must mainly look Icr action ou that subject. Bui as me cou duc. ol the Federal lioveri'luent in the management of it* revenue ha* also a pow erlu! though less •iiitiiedia.e influence upon them, u become- our and .iy to see dial a proper uitectuu is g,ven lo it. VV mie die ke< ptfcg ot die public revenue in a seper ale anu imiepeii eul treasury, ami ol col lecting it iu golU and silvei, will have a salutary influence ou die system ol paper cretin witn winch ail banks are connect, and, aim tii ns aid (Hose Unit are sound ad well managed, it will at die same tune sensibly check such as are otherwise, by at once withholding tiie means ol extravagance at lorded by die public funds and restraining tuero Irom excessive issues of notes whicn they would be constancy called upuu lo redeem. I am aware it has been urged that this control mm he b.-s attained and exerted by means ol a National Bank. The Con stitutional objections, which 1 am well known to entertain, would prevent trie in any eveut Irani proposing or assenting to that remedy ; hut in addition lo this, 1 cannot alter past experience bring myself to think that it can any longer be extensively regarded as effec tive lor such a purpose. Tiie history ol the lid National dank diroUgll ail its muta tions show* that it was not so. On the contrary, it may, after a caretul consider ation of the subject be, I think softly stated, that at every period if banking excess it look the lead ; liiat in 1817, and iBrB, in 18.23, ill 1831, and in iBJ4, us vast expan sions, followed by distpesMi g contractions, led to tho-.e ot the ijiate iiistu tious. L swelled and maddened tiie tides of the banking system, but seldom allayed or sate ly directed them. At a lew periods only was a salutary control exercised, bn*, an eager desire on t t- contrary, exhibited for prom in the ffrst place, and if afterwards, its in asurcs w ere severe towards other in stitutions, it was because it* own safety compelled it lo adopt them, it did not (lit ter horn them it. principle or in lorr' ; its measures emanated from the same spirit ol gain. i» li-lt the s:r,-ie tempt ition to over issues. it suffered front and was totally un able to avert, those inevitable laws ot trade, by which it was itself affec-Tted equally with them, and at least on one occasion, at an early day, it was saved onl> by extraordinary 1 y r iot ", from the muh fat.'that attended the weakest institution it prolcssitl to super vise. In 1837 it lulled, equally with others, in redeeming its notes, though the two years allowed by its charter for that purpose had not expired, a large amount of which re mains to the present time outstanding. It i< true, that having so vast a capital, and strengthened by the use ofal! the reveuues of the Government, it possesed more-power, but while it uns'itself, by that circumstance freed from th ■ control which all banks re quire. i'« paramount object and inducement, were left the same to make the most sot its slock holders, i,ot tu regulate t t- currency it ihe country Nor has it, as far as we are a vised, been found to he greatly otherwise els. where. The national character given to h - Bank ofEengland, has not prt vented excessive fluctuations iu tin tr currency, and it proved unable te keep off' a suspen ion i-T specie pavniett's, which lasted for nearly a quarter of a century. And why h leid we expect it to be otherwise? A n-iioii.il 'it,'itutiou, though deriving ii cliaractsr from a different source than the S: u- hanks, is vet constituted upon the me principles, is conducted tiy men equal v exposed to temptation; ad is liable to he same disaster; with ihe additional dis advantage that its magnitude occasions an t xtent of confusion and distress which the mismanagement ol smaller institutions could not produce. It can scarcely he doubted that the recent suspension ol tlte United .Stales Bank n| Penusyivani i- of which tlie 'fleets are felt not in that State alone, but n'er half (lie Union—had its origin in a course of business commenced while ii was a national institution; and there is no go -d reason for supposing that the same onsequences would not have followed, hat. it « 11 11 derived its powers from the Generai Government. It is in vein, when the in fluences and impulses are the same, to look lor a difference in conduct or results By sucii creations, we do therefore but 'ncreasc the mass of paper ctedit aud paper currency, ,i in (In cumg their ..ue' iiaii evils and fiuciuatious. The extent of power and the efficiency of organization which we give, so fur from being beneficial, are in practice o-oivelv mju imi* !' ev strengthen the claim ol dependence throughout the Union. •ihjt ct ill | it more certainly to romnnm disa*t r, and bind everv hand more eflcctoal v in Hie fit i inst nee. to ihu-eut our com mercial cities, and inthe end, to a foreign power. In a word. I cannot but believe that, with the full nndersta ding o - the op erations of our banking syster , which ex perietice has produced, public sentiment is ..nt iess oposed to the creation of a National Bank for the purposes connected with cur r m y and commerce, than lor those con nected with the fiscal operations of the Government. Yet the commerce and currem yof t e country are suffering evils from the opera tions of the State Haul's which cotinot and ought not to be overlooked. By then means, we have been flooded wuh deprecia led paper, which it was evidently the design olthe framers of the Constitution o prevent, when they required Congress to “coin mo ney and regu'ate the value ol foreign coins,” and when they forbade the States “to coin money, emit bills of credit make any thing but gold and silver a tender in payment of debts,” or “pass any law impairing the ob ligation of contracts.” If they did not guard more explicitly against the present state of things, it was because they could not have anticipated that the few banks then existing were to swell to an extent which would expel to so great a decree tlte gold and silver, for which they had provided, liom the channels of circulation, and fill them with a currency that defeatsthe objects they had in view. The remedy for this must chiefly rest with the States from whose legislation it has sprung. No good that mb'lit accrue in a particular ease from the exercise of power not obviously conferred on the General Government, would author ise its interference, or justify a course that might, in the slightest degree, increase at the expense of the States, the power of the Federal authorities —nor do 1 doubt that the , States will apply the remedy. Within the last few years, events have appealed to them too strongly to he disregarded. They have seen that the Constitution, though theoreti cally adhered to, is subverted in practice, that while on the statue books there is no legal tender hut gold and silver, no law im paring the obligations of contracts, yet that in point of fact, the privileges conferred on banking corporations have made their notes the currency the country that the obligations imposed by these notes are violated under the impulses of interest or convenience ; and that the number and power of the persoa connected with these corporations, or ed under their influence, give them a leartut weigh} when their interest is in opposition to the spirit of the constitution and laws. qq. the people u i* immaterial whether these re sults are produt eu by open violations of the later, or by the workings ol a sysGtn of which the tesulls is the same. An inflexi ble execution even of the existing statut-* ol most of the States, would redress many evils now endured, sou and effectually show the banks the dangers ot mismanagement which impunity encouages them to repeat and would leach alt corporations the uselui lessons thal they are the subjects of Ihe law and the servants of the people. Whati* still » anting to effect these objects, must be i sought in additional legislation; or, if that lie inadequate, in sueh futher constitution al grauts or restrictions as mav bring us 1 back into the path from which we hare so widely wandered; In tlte meantime it is the dnty of sh« General Government to co-operate with the S'ales, by a wise exercise of its constitution al powers, and the enforcement ol its exis ting laws. The extent to which it may dt> so by further enactineuts, have already ad verted to, and tlte wisdom of Congress may yet enlarge them. But, above all, it is in cumbent upon us to hold erect the prin ciples of morality aud laws, constantly exe cuting our own contracts iu accotdat.ee wi |» the provisions of the Constitution, and thus serving as a rallying point by which our whole country may be brought back to that safe and honorable standard. Our people wjil not long be insensible to the extent of the burdens entailed upon them by the aisesvstem that has been operating on their t.mguiiie. energetic, and i tdttstrious ch.it seter, nor to the means necessary to ex ar.cate themselves form these embarrass ments. The weight which presses upon a large portion ol the people and the Stall*, is an enormous debt, foreign and domestic. The foreign debt of our States, corporations, and men of business, can scarcely be less than two hundred millions of dollars, re quiring more than ten millions of dollars a year to pay the interest. This sum has not been paid out of the exports of the coutt tiy, ami must ol ueccssity cut off imports to that extent, or plunge the country more deeply in debt from year to year. It iseasy to see that the increase of this foreign debt must augment the annul demand on the ex ports to pay the interest, and to the same extent diminish the imports; and in propor tion to the enlargement of tire foreign debt and tlte consequent increase of interest, must he the decrease ol the import trade. In lieu of the comforts which it now brings us, we might have our gigantic banking in stitutions, and splended, but, in many in stances, profitless, railroads and c mats, ab sorbing to a great rxient, in interest upou the capital borrowed to construct them, tffo surplus fruits of national industry for years lo come, and securing to posterity no ad equate return for the comforts which the labors of their hands might otherwise h ire seeuied. It is not by tiie increase of this debt ih.it relief is to be sought, but in its diminution. Upon this point, there is, 1 am happy to say, hope before us; not s* much in ihe return of confidence abroad, which will enable tlte States to borrow more money, as in a change of public feeling at home, which prompts our people to pau*e in their career, and think of the means by which debts are to be paid before they art* contracted. If we would escape embarrass ment, public and private, we must cease to run in debt, except for objects ol necessity, or such as will yield a certain return. Let the faith of tlte States, corporations, aud individuals, already pledged, be kept with the most punctillinu* regard. It is due to our national character, a* well as to justice, that this should on the part of each be a fix' and principle of comluct. But it be hoves ns all lobe more chary in pledging it hereafter. By ceasing to run in debt, and applying the surplus of our crops and in comes to the discharge of existing obliga tion-, buying less and selling more, am! managing all affairs, public and private, with strict economy and frugality, we shall see our country soon recover from a temporary dispression, arising not from natural and permanent causes, but from those 1 have enumerated and advanced with renewed vi ;ur iu her career of prosperity. Fortunately for us at this moment, when the balance of trade is greatly against us, and the difficulty of meeting is enkanced|by the disturbed stale of our money affairs, the bounties of i’rovidence have tome to te lir.ve us liom the cot.sequences of past er rors. Alat.hlni arplicalion olthe immense results ol the labors ol the last srsson will afford partial relief f, t the present and per s'verance in the same course will in due season accom; iish the rest. We have had full experience, in times past ol the extra ordi results w hich can. in this respect. be brought about iua short period, by the united an! w ell directed efforts ol a rom tnuniiy like ours. Our surplus profits, the pueigv and industry of our population, and the wonderful advantages which Providence has bestowed upon our country, in its cli mate. us various productions, indespensa bie to oilier nations will, in due time, af mrd abundant means lo perfect the most useful of those objects, for which the Slates have been plunging themselves of late in embarrassment*and debt, without imposing on ourselves or our children such fearful burdens. But let it be indelibly engraved on our minds that relief is not to be found in ex pedients. Indebtedness cannot be lessened by borrowing more money, or by changing the form of the debt. The balance of Irade is not to be turned in our lavor by creating new demands upon ns abroad. Our cy cannot be improved by the creation of new Banks, or more issues from those which now exist. Although these devices so uetitnes appear to give temporary relief, they aliiiost invariably aggravate th<-0, in the end. It is also by reirenchment and re lortn, by curtailing public and private ex penditures, by paying our debts, and by re forming our banking system, that we are to expect effectual relief, security for the fu ture. and an enduring prosperity. In sha ping the institutions and policy of the Gen erai Government so as to promote, as far as it can w-th its limited powers, these import ant ends, you may rely on my most cordial co-operation. That there should have been, in the pro gress of recent events, doubts in many quar ters, and in some a heated opposition to eve ry change, cannot surprise us. Doubts are properly attendant on all reform ; and it is peculiarly in the nature of such abuses as we are now encountering lo seek to perpetu ate their power by means ol the influence they have been permitted to acquire. It is their result, if not their object, to gain for the few an ascendancy over the many, by securing to them a monopoly o f the curren cy, the medium through which most ofthe wants of mankind are supplied—to produce throughout society a chain ol dependence