7-tween her-and that Republic.
itselfin afcondition to make present pay-
ment of the amount of the awards, in specie
or its equivalent. _ _
I am happy to be able togay‘ that information
which is esteemed favorable, both to a just
satisfaction of the a‘wa‘i"ds, and a reasonable,
provision for ‘other claims, has been actually
received front Mr. Tompson, the Minister of
the United States, who has promptly and ef-
ficeintly executed the instructions of his
Government, in regard-to this important sub-
ject. , '
The’ (:itizens'of the United States who ac-
~ companied the late expidition to Santa Fe,
. and who were wrongfully taken and held as
risoners ofwar in Mexico, have all been
- iber'ated.
, dqcorrespondence hastaken place between
the Department of State and the Mexican
-Minister of Foreign Affiirs, upon the com-
- plaint of Mexico that citizens of the Uriited
- States were permitted to give aid to the in-
- habitants of Texas in the war existing be-
Copies of
this correspondence are herewith communi-
cated to Congress, toget‘h'e‘r with copies of
letters» on the same subject, addressed to the
‘ Diplomatic corps at Mexico, by the Ameri-
can Minister‘ and the Mexican Scc’r‘e’tary of
State. ‘
Mexico has thoiigfht proper to reciprocate
the mission of the United States to that Gov-
ernment by accrediting‘ to this a minister of
the same rank as that of the representative
of the United States in Mexico. From the
circumstances connected with his mission.
favorable results are anticipated from it. It
is so obviously for the interest of both coun-
tries as neighbors and friends that all causes
‘of mutual dissatisfaction should be removed.
that it is to be hoped neither will omit or
delay the employment of any practicable-
'or honorable means to accomplish that end
The afiairs pending between this Gov-
ernment and several others of the States of
‘this hemisphere formerly under the doinin-
‘ion of Spain, have again, within the past
year, been materially obstructed by the mili-
tary revolutions and conflicts in those coun-
~-tries. '
The ratifications of the treaty between the
United States and the Republic of Ecuador,
of the 13th of June, 1839, have been ex-
changed and that instrument has been duly
promulgated on the part ofthis government.
Copies are now communicated to Congress
with a view to enable that body to make
suchchanges in the laws applicable to our
"intercourse with that Republic, as may be
deemed requisite.
Provision has been tnade by the govern-
ment of Chili for the payment of the claim
on account of the illegal detention of the brig
Warrior at Coquimbo, in 1820. This gov-
‘ernment has reason to expect that other
claims of our citizens against Chili will be
‘hastened to a fiual and satisfactory close.
The Empire of Brazil has not been alto-
‘getlier exempt from the convulsions which
so constantly afflict the neighboring repub-
lics. Disturbances which recently broke
oiit are. however, now understood to be qui-
eted. But these occurrences, by threatening
the stability of the governments or by caiis-
ing incessant and violent changes in them,
or in the persons who administer them, tend
greatly to retard provisions for a just indem-
nity for losses and injuries suffered by indi-
vidual subjects or citizens of other states.-
The government of the United States will
feel it to be its duty, however, to consent to
no delay, not unavoidable. in making satis-
faction for wrongs and injuries sustained by
its own citizens. Many years having, in
some cases, elapsed, a decisive and effectual
course of proceeding will he demanded of
the respective governments against whom
claims have beenepreferred.
The vexatious, harassing, and expensive
war which so long prevailed with the Indian
tribes inhabiting the peninsula of Florida,
has happily been terminated; whereby our
army has been relieved from a service of the
most disagreeable character, and the Treas-
ury from a large expenditure. Some casual
outbreaks may occur, such as are incident
to the close proximity of border settlers and
the Indians ; but these. as in all other cases
may be left to the care of the local authorities
aided, when occasion may require, by the
forces of the United States. A sufficient
number of troops will be maintained in Flor-
ida, so long as the remotest apprehensions
of danger shall exist; yet their duties will
be limited rather to the garrisoning of the
necessary posts, than to the maintainance of
active hostilities. It is to be hoped, that a
territory so long retarded in its growth will
now speedily recover fromthe evils incident
to a protracted war, exhibiting, in the in-
creased amount of its rich productions, true
evidences of returning wealth and prosperity
By the practice of rigid justice towards
the numerous Indian tribes residing within
her territorial limits, and the exercise ofa
parental vigilance over their interests, pro-
tecting theiu against fraud and intrusion, and
at the same time using every expedient to
introduce among them the arts of civilized
life, we may fondly hope not only to wean
them from their love of war. but to inspire
them with a love for peace and all its avoca-
tions. With several of the tribes great pro-
gress in eivilizing them has already
been made. The school master and the
missionary’ are found side by side, and the
rcmnants of what _were once numerous and
potverful nations may yet be preserved as
"The builders tip of a new name for them-
selves and their prosterity. '
The balance of the Treasury on the lstof
January, 1842, (exclusive of the amount de-
posited with the States, Trust Funds and In-
demniii.-s.) was $230,483 68. The receipts
into the Treasury duringthethree firstquar-
térs of thegpresent year, from all sources,
amount-to‘$26,616,593 78; ofwhich more
than fourteen millions were received from
customs, and about one million from the
publig-,_ lands, The receipts for the fourth
uafier are estimated at nearly eight millions
ofwhicb four millions are expected from
customs, and three millions and a half from‘
loans and'I‘reasury notes. The expenditli res
of the first three quarters ofthe present year
exceed twenty-six millions; and those esti-
mated for the’ fourth quarter amount to about
eight millions; and it is antici ated there
wi|l.be a deficiency of half a million on the
firstof January next—but that the amount of
°u'm,,ndin:g tyarr‘ants(cstimated at $800,000)
----
will leave an actual balance of about 32:24,-
000 in the Treasury. Among the expendi-
tures of the year, are more than eight mil-
lions for the public debt, and $600,000 on
account of the distribution to the States of
the proceeds of sales of the public lands.
The present tarifl‘of,duties was somewhat
hastily-and hurriedly passed near the close
of the-late session of Congress. That it
should have defects can, therefore, be stir-
prisingto no one. 'l‘o remedy such defects
as may be found to exist in many of its nu-
merous provisions, will not fail tocluim your
serious attention. It may well merit inquiry
whether the exaction of all duties in cash
does not call for the introduction ofa system
which has proved highly benefical in coun-
tries where it has been adopted. 1 refer to
the Warehousing system. The first and
most prominent effect which it has produced
would be to protect the market alike against
redundant or deficient supplies of foreign
f:ibrics——both of which in the long rtin, are
injurious as well to the manufacturer as the
importer.
'l‘he quantity of goods in store being at
all times readily known, it would enable the-
importer, with an approach to accuracy, to
ascertain the actual wants of the market, and
to regulate himself accordingly. If, ho\v-
ever, he should fall into error, by importing
an excess above the public wants, he could
readily correct its evils by availing himself
of the benefit and advantages of the system
thus established. In the storehouse tho-
goods imported would await the demands of
the market, and their issue would be govern-
ed by the fixed principles of demand and
supply. Thus an approximation would be
made to a steadiness and uniformity of price,
which, ifattainable, would conduce to the
lecided advantage ofmercantile and mechan-
ical operations.
The apprehension may be well entertained
that without something to ameliorate the
rigor of cash payments, the entire import
trade may fall into the hands ofa few weal-
thy capitalists in this country and in Europe.
The small importer, who requires all the
money he can raise for investments abroad,
"ind who can but ill afford to pay the lowest
lutics, and would lose the interest upon the
amount thus paid for all the time the goods
might remain unsold, which might absorb
his profits. The rich capitalists abroad, as
well as at home, would thus possess, after a
short time, an almost exclusive monopoly of
the import trade, and laws designed for the
beni.-fit of all, would thus operate for the
benefit of a few —a result wholly unconge-
nial with the spirit of our institutions, and
anti-republican in all its tendencies
The Warehousing System would enable
the importer to watch the market, and to
select his own time for offering his goods for
sale. A profitable portion of the carrying
trade in articles entered for drawback, must
be seriously effected, without the adoption of
some expedient to relieve the cash system.
The Warehousing system would afford that
relief, since the carrier would have a safe
recourse to the public storehouses, and might
without advancing the duty, reship within
some reasonable period, to foreign parts. A
urther effect of the measure would he to su-
percedc the system of drawbacks, thereby
effectually protecting theGovernment against
fraud, as the right of debenture would not
attach to goods after their withdrawl from
the public stores.
In revising the existing tariffof duties,
should you deem it proper to do so at your
present session, I can only repeat the sug-
gestions and recommendations which, upon
several occasions, I have heretofore felt it to
be my duty to ofier to Congress. The
great, primary and controlling interest of the
American people is union—iinion not only
in the mere forms of government, forms
which may be broken—but union founded
in an attachment of States andindividiials for
each other. This union in sentiment and
feeling can only be preserved by the. adoption
ofthat course of policy which, neither giv-
ing exclusive benefits to some, nor imposing
unnecessary burdens upon others, shall cori-
sult the interests of all, by pursuinga course
of moderation, and thereby seeking to har-
monize public opinion, and causing the peo-
ple every where to feel and to know that the
Government is careful ofthe interests of all
alike-. Nor is there any subject in regard
to which moderation, connected with a wise
discrimination, is more necessary than in the
imposition of duties on imports.
Whether reference be had to revenue, the
primary object inthe imposition of taxes, or
to the incidents which necessarily flow from
their imposition, this is entirely true. Ex-
travagant duties defcat their end and object,
not only by exciting in the public mind a
hostility to the manufacturing interests, but
by inducing a system of smuggling on an
extensive scale. and the practice of every
manner of fraud upon the Revenue, which
the utmost vigilance ofthe government can-
not effectually suppress. An opposite course
of policy would be attended by results es-
sentially different of which every interest of
society, and none uiore than those of the
mzinufiicturer, would reap important advan
tages. Among the most striking of its bene.
fits would be that derived from the general
acquiescence of the country in its’ support,
and th_e consequent permenancy and stability
which would be given to all the operations of
industry. -It cannot be too often repented,
that no system of legislation can be wise
which is fluctuating and uncertain. No in-
terest can thrive under it.
The prudent capitalist will never adven
tore his capital in manufacturing establish-
ments, or any other leading pursuit of life, if
there exists a state ofuncertaiinty as to wheih-
er the Government will repeal to-moi-row
what it has enacted to-day. Fitful profits,
however high, if threatened with a ruinous
reduction by a vacillating policy on the part
of Government, will scarcely tempt him to
trust the money which he has acquired by a
life of labor, upon the uncertain adventure.
Itherefore, in the spirit of conciliation, and
influenced by no other desire than to rescue
the great interestsof the country from the
vortcx of political contention, and in the dis-
charge of the high and. solemn duties ofthe
place which I now occupy, recommend mod.
erate duties imposed with a wise discrimina-
tion as totheir several objects, as being not
vantngeous to every interest of society.’
The report of the Secretary of the War
Department exhibits a very full and satis-
factory account of the various and important
interests committed to the charge of that
officer. It is particularly gratifying to find
that the expenditures for the military service
are greatly reduced in amount-—that a strict
system of economy has been introduced into
the service, and the abuses of past years
greatly reformed. The fortifications on our
maritime frontier have been prosecuted with
much vigor, and at many points our defences
are in a very considerable state of forward-
ness. ' The suggestions in referenceto the
establishment of means of communication
with our territories on the Pacific; and to
the surveys so essential to a knowledge ofthe
resources of the intermediate country, are
entitled to the most favorable consideration.
VVhile I would propose nothing inconsistent
with friendly negotiations to settle the extgpi
of our claims in that region, yet a prudeht
forecast points out the necessity of such meas-
ures as may enable us to maintain our rights.
The arrangements made for preserving our
neutral relations on the boundary between
us and Texas, and keeping in check the
Indians in that quarter, will be maintained
so long as circumstances may require.
For several years angry contentions have
grown out of the disposition directed by law
to be made ofthe mineral funds held by the
Government in several of the States. The
Government is constituted the landlord, and
the citizens of the States wherein lies the
lands are its tenants. The relation is an
unwise one, and it would be much more con-
ducive of the public interest that a sale of
the lands should be made than that they
should remain in their present condition.-—
The supply of ore would be more abundant-
ly and certainly furnished when to be drawn
from the enterprise and the industry of the
proprietor, than under the present system.
The recommendation of the Secretary in
regard to the improvements ofthe 'Western
waters and certain prominent harbors on the
lakes, merit, and I doubt not will" receive
your serious attention. The great import-
ance ofthese subjects to the prosperity of
the extensive region referred to and the se-
curity of the whole country in time of war,
cannot escape observation. The losses of
life and property which annually occur in
the navigation of the Mississippi alone, bi-
eause of the dangerous obstructions in the
river, make a loud deman-l upon Congress
for the adoption of efficint measures for their
removal. -
The report ofthe Secretary of the navy
will bring you acquainted with that import-
ant branch of the public defences. Consid
ering the already vast and daily increasing
commerce of the country, apart from the ex-
posure of hostile inroad ofan extended sea-
board, all thut relates to the navy is calcula-
ted to excite particular attention. VVh.itever
tends to'add to its efficiency, without entail-
ing unnecessary charges upon the Treasury
is well worthy of your serious consideration.
It will be seen that while an appropriation
exceeding by less than a million the appropri
ations of the present year, is asked by the
Secretary, yet that in this sum is proposed
to be included $400,000 for the purchiisepm‘
clothing, which when once expended, will
he annually reimbursed by the sale of the
clothr=s,and will thus constitute a perpetual
fund, without any new appropriation to the
same object.
To this may also be added $50,000 asked
to cover the arrearages of the past year; and
$250,000 in order to maintain a competent
squadron on the coastofAfrica; all ofwhich
deducted will reduce life expenditures n('al'
ly within the limits of those of the current
year. While howeverthe expenditures will
thus remain very nearly the same as of the
antecedent year, it is proposed to add greatly
to the operations of the Marine, and in lieu
of only 25 ships in commission, and but
little in the way of building, to keep, with
same expenditure,4l vessels afloat, and to
build 11 ships ofa small class.
A strict system of accountability is estab-
lished, and great pains are taken to insure-
industry, fidelity, and economy in every de-
partment of duty. Experiments have been
instituted to test the quality of various mate-
rials, particularly copper, iron, and coal, so
as to prevent fraud and imposition.
It will appear by the report of the Post-
master General that the great point which,
for several years, has been so much dc-sired,
has, during the current year, been fully
accomplished. The expenditures ofthe dc-
partment, for the current year, have been
brought within its income without lessening
its general usefulness. There has be» u an
increase of revenue equal to $106,000 for
the year 1842 over that of 1841, without as
it is believed,‘any addition having been made
to the number of letters and newspapers
transinitted through the mails. The Post
Office laws have been honestly administered,
and fidelity has been observed in accoiinting
for, and paying over by the suboidin.-ties _of
the Departiiient, the moneys which have
been received. For the details of the ser-
vice, I refer you to the report.
I flatter myself that the exhibition thus
made of the condition of the public adminis-
tration will serve to convince you that every
proper attention has been paid to the interests
of the country by those \\ he have been call-
ed to the heads of the different Departments.
The reduction in the annual expenditures of
the Government already accomplished, furn-
ishes a sure evidence that economy in the
application of the public money, is regarded
asa paramount duty.
At peace with all the world—the personal
liberty ofthe citizen sacredly maintained, and
his rights secured under political institutions
deriving all their authority from the direct
sanction of the people---with a soil fertile
almost beyond example; and a country bless-
ed with every diversity of climate and pro-
duction,—what remains to be done in order
to advance the happiness and prosperity of
such a people .7 Under ordinary circum-
stances this enquiry could readily be an.
swered.
The best that could probably be done for
a people inhabiting such a coiintry,would be
to fortify their peace and security in the pros-_
ecution oftheir various pursuits, by guard
ing them against invasion from without and
violence within. The rest, for the greater
only most likely to be durable, but most ad- part, might be left to their own energy and deposit, to a limited amount, the specie funds
enterprise. The chief embarrasments which
at the moment exibit themselves,» have a-
risen from over actio‘n;-fend the most diffi-
cult task that remains\o be accomplished, is
that of correcting and overcoming its effects.
Between the years 1833 and '38, additions
were made to bank capital and bank issues,
in the form of notes designedjfor circulation.
to an extent enormously great. The‘ ques-
tion seemed to be, not how-the bestcuriency
fn circulation. -
Thus a vast amount of what was called
money—since, for the time being, it answer-
ed the purpose of money--was thrown upon
the country, an over issue which was atten-
ded,‘as a necessary consequence, by an ex-
articles of property, the spread of a specula-
tive mania all over the country, and has fin-
ally ended in a general indebtedness, on the
part ofthe States and individuals. the pros-
tration of public and private credit, a depre-
ciation in the market value of real and per-
sonal estate, and has left large districts of
country almost entirely without any circula-
ting medium.
In view of the fact that. in l830,the whole
bank note circulation within tho United
States amounts-d.to but $61,825,828 accord-
ing to the Treasury statements. and that an
addition had been made thereto of the enor-
mous sum of $88,000,000 in seven years;
(the circulation on the 1st January, 1837, be-
ing stated at $149,185,890.) aided by the
great facilities in obtaining loans from Euro-
pean capitalists, who were seized with the
saute speculative inania which prevailed in
the United State-s—-and the large impor-
tations of funds from abroad, the result of
stock sales and loans——no one can be stir-
prised at the apparent, but unsubstantizil state
08 prosperity which every where prevailed
over the land; and while little cause of sur-
prise should be felt at the present prostratir-n
of every thing, and the ruin which has be-
fallen so many ofour fellow citizens. in the
sudden withdrawal from circulation of so
large an amount of bank issucs,since,l837'——
exceeding as is believed the amount added
to the paper currency for a similar period
antecedent to 1837, it ceases to be a matter
of astonishment that such extensive ship-
wreck should be inadelofprivatc fortunes, or
that difficulties should exist in meetingthi—ii'
engagements on the part of the debtor States.
Apart from which, if there be taken into
account the immense losses sustained in like
dishonor of numerous banks, it is less a mat-
-‘for, to be redeemed on presentation, under
-the idea, which isbelieved to be well found-
ed, that such certificates would come in”"aijd t
of the‘ Exclieqiier hills in supplying a‘ safe
and ample paper circulation.
lugs in exchange. the Exchequer should be
authorized not only to exchange its bills for
actual deposites of specie, but for speice or its‘
could be provided, but in what manner the i-quivalent, to sell drafts, charging therefore
greatest amount of bank paper could be put a small but reasonable premium, I cannot
i doubt but that the benefits ofthe la w would
credit, the trade and business of the whole
travagant increase ofthe prices of all the .
‘to indiviiluzils.
Or, if in the place ofth-e’ contemplated deal-
be speedily mrmifested in the revival of the
country. Entertaining this opinion, it be-
comes my duty to urge
Congress, by reference to the strongest con-
siderations ofthe public interests, with such
alterations in its details as Congress may in
its wisdom see fit to make.
1 am well aware that this proposvd altera-
tion and amendment of the laws establishing
the Treasury Department has encountered
various objections, and that among others it
has been proclaimed a Government Bank of
fearful and dangerous import. It is proposed
to confer upon it no extraordi‘nary powers.
It purports to do no more than pay the debts
ofthe Government with the redeemable pa-
per of the govt-rnment—in which respect it
accomplishes precisely what the 'l‘ri-asury
does daily at this time, in issuing to the pub-
lic creditors the Treasury Notes wliicli it is
authorized to issue. It has no l'PS81'llbl8l'lt'¢-
to an ordinary bank, as it furnishes no profits
to private stockholders, and lends no capital
lfzit he objected to as a Gov-
ernment bank, and the ob_iection be available-
—'.hen should all the laws in relation to the
Treasury be repealed, and the capacity of
the GO\’€fDfnt‘_Il'l to collect what is due to it,
or pay what news, he abrogated.
This is the chief purpose of the proposed
Exchequer; and, surely if, in the i.ii:complish-
ment of a purpose so essi-ntizil, it affords a
sound r-ircnlating medium to the country and
facilities to trade, it should be regarded as no
eration. Properly guarded by the provisions
of law, it can run into noilangerous evil, nor
can any abuse rise under it but such as the
legislature itself will he answerable for, if it
be tolerated; since it is btit the creatiire of
ltho law, and is susceptible at all times of
’niodification, iiinendinent or repeal, at the
pleasnre of Congress. I know that it has
bet u object--d that the system would be liable
to be abused by the L"gislature, by whom
alone it could be abused, in the party cen-
ter of surprise that insolvency should have
escaped the blighting influence of the times.
In the solemn covictions of these truths.
ing necesities ofthe country, I felt it to be
my duty to cause to be submitted to you, at
the commencement of your late session, the
plan ofau Exchiqucr, the whole poiverand
duty of maintaining which, in puri'y and
vigor, was to be exercised by the representa-
tives ofthe people themselves. It was pro-
posed to place it under the control and di-
rection of atreasury board,‘ to consist of three
commi.-sioners, whose duty it should be to
see that the great end of supplying a paper
_,mr.~dium of_i=~xr-lmngra, nt alltin1r:sc0ii1'§‘ftlble
into gold and silver, should be attained.
The Board thus constituted, was given as
much permanency as could be imparted to
it, without endangering the proper share of
responsibility which should attach to all pub-
lic agents. In order to secure all the ad-
vantages ofa well matured experience, the
Commissioners were to hold their offices for
the respective periods of two, four and six
years ; thereby securing at all times in the
management ofthe Exchequer, the services
oftwo 1I)t'Il ofexperience; and to place them
in a condition to exercise ‘perfect independ-
ence of mind and action,it was provided that
their removal should only take place for
actual incapacity or infidelity to the trust,
and to be followed by the President with an
exposition ofthe causes of such removal,
should it occur.
It was proposed to establish subornidaite
boards in each of the States, under the same
restrictions and limitations of the power of
removal, which. with the central board,
should ri-ceive, safely keep, and disburse
the public moneys; and in order to furnish
a sound paper medium ofexcliange, the Ex-
cheqtier should retain ofthe revenue of the
_Govern_ment a sum not cxcec-.ling $5,000,
000, in specie, to bt*setap:irt as required by
its operations, and to pay the public creditor
at his own option, either in specie or Treas-
ury note .denoiiii,L'i,ons not lrss than 5, nor
exceeding hunqhi-d dollars, which notes
should be redce * - at the several places of
l5Sl]f-', an t ‘viable at all [lines and
every wh.
with a restrain upon such issue of hi.»-
the same should not exceed the"'”rii‘a
of815,000,000. _.
In order to guard againgt ,_
incident to fluctuations in "retary
of the Treasury was inv.e'st‘e’(l_’, fitt‘ 9-authority
to issue $5,000,000 of Grpiternnierit stocks,
should the same at tllly,,.I'i_l:l"1‘e be regartled as
necessary, in order to pliicebeyorid hazard
the prompt redemption of the hills which
might be thrown into circulation. Thus in
fact making the issue 0 $15,000,000 of Ex-
chequer bills, rest substantially on $10,000.
000; and keeping in circulation never more
than one do one-lialfdollars for every dollar in
specie. When to this is added that the
bills are not only every where receivable
in Government does, but that the Govern-
ment itsclfwould be bound for their ulti-
mate redemption, no rational doubt can ex-
ist that the paper which the Excequcr would
furnish, would readily enter into general
circulation, and be maintained at all times at
at or above par with gold or Silver,
thereby realizing the great want of the age,
and fulfilling the wishes of the People.
In order to reimburse the Government the
expenses of the plan, it was proposed to in-
vest the Exchequer with the liuiited author-
ity to deal in bills of exchange, unless pro-
hibited by the State in which an agency
might be situated, having only thirty ‘days
to run, and resting on a fair and bona fide
basis. The Legislative will on this point
might be so plainly announced as to avoid
and with an ardent desire to meet the press-‘
‘ iiiliiiriei-'i’i‘r'i“t be made by a chartered institution, is sup-
~ ;b’e;,_miidethen directly by Government agents,
.flicts ofthe day.
That such abuse would irianifi-st itself
gin a change 01 the law which would author-
ize an excessive issue of paper for the pur-
pose of inflating prices and winning popular
favor. To_,that it may be answered, that the
ascription of such a motive to Congress is
altogether gratuitous and inadinissible. The-
theory ofour institutions would lead us to
a different conclusion. But a perfect sccui i-
ty against a proceeding so reckless, would
be found to exist in the very nature oftliings.
The political party which should be so blind
to the true interests of the country, as to re-
sort to such an expepient, would inevitably
nieetgwith final overthrow in the fact that the
moment the paper ceased to be convertible
itito specie, or otherwise promptly redeemed,
it would become worthless, and would. in
the end dishonor the Government, would in-
volvethe people in ruin, and such political
party in hopeless disgrace.
At the same time. such a view involves
the utter iinpossihility of furnishing any cur-
rency otherthan that of the precious metals,
for, if the Government itself cannot forcgo
the temptation of excessive pa per issues, what
reliance can be placed in corporations, upon
whom the temptations of individual aggran-
dizemcnt would most strongly operate? The
people would have to blame none but them-
selves for any injury that might arise from a
course so reckless, since their agents would
be the wrong doers, and they the passive
sprctitors. ‘
There can be but tlireeltinds of public
currency. lst. Gold and silver. 2d. The
paper of State institutions; or, 3d. A repre-
sentaiive of the precious metals, provided by
the General Government, or under its au-
thority. Thc. Sub-'l‘reosury system rejected
the last in any form ; and as it was believed
that no reliance could be placed on the is-
sues of local institutions, for the purposes of
general circulation, it necessarily :ind una-
voidably adopted specie as the exclusive cur-
rency for its own use.
And this must ever be the case unless one
of the other kinds be used. The choice, in
the present state of public sentiment, lies be-
t ecu an exclusive specie currency on the
" “hand, and Government issues of some
D ion the other. That these issues can-
posed to be conclusively settled. They must
Foriscveral years past they have been thus
made in the form of Treasury notes, and
have answered a valuable purpose. Their
usefulness has been limited by their being
transient and temporary; “their ceasing to
bear interest at given periods, neccsearily
causes their speedy return, and thus restricts
their range of,'cii'culation,_and, being used
only in the disbiirsenicnts of government,
they_can'not ‘reach those points where they
are niost required.
Byrendering their use permanent, to the
moderate extent already mentioned, by_ofier-
ing no inducement for their return, and by
exchanging them for coin and other valu--s,
they will constitute, to a certain extent, the
general currency so much needed to main-
tziiri the internal trade ofthe country.- And
this is the Exchequer plan, so far as it may
operate in furnishing a currency.
Icannot forego the occasion to urge its
importance to the credit of the government
in a financial view. The great necessity of
resorting to every proper and becoming ex-
pedient, in order to place the Treasury on a
footing of the highest respectability, is en-
:.
.. .. _- <,'.-2 ."
as the basis for the negotiafion of the loans
authorised to be contracted.
I then thought,
hat such an application ofthe public domain
would, without doubt, have placed at the
command of the government ample-funds to
relieve the Treasury from‘ Cthe-~ temper-s‘ry
embarrassments under, which it.labored.-
American credit has suffered a_co_n_siderable
shock in Europe, from the large indebtedness
of the states 55 the temporary inability-bfsome
ofthem to meet thejtiterrst on the_:ir_debts..
, The utter and disastrous prostratioii_ of the
United-States Bank of Pennsylvania had
contributed largely to increase the sentiment
of distrust by reason ofthe loss and ruin sus-
iis adoption upon taim-d by the holders of its stock,'a large
portion of whom were foreigners,"-and many
of whom were alike ignorant of our political
organization and ofouractual responsibilities.
It-was the anxious desire of the Executive"
that in the effort to negotiate the loan abroad,
the American negotiator mightbe able to
point the money lender to the fund mortga-
ged for the redemption of the principal and
interest of any loan he might contract, and
thereby vindicate the government from all
suspicion of bad faith or inability to meet'i1s
c-ngagements. Congress differ: d from the
Executive in this view of the subject. I‘
It became, nevertheless, the duty of the
Executive to resort to t.‘VC|'y~9XPt'dl("‘IfI in its
power to negotiate the authorised loan. Af-
ter a failure to do so in the American market,
a citizen of high character and talent was
sent to Europe with no better success; and
thus the moitifying spectacle has been pir-
sented of the inability of this Governni:-nt to
obtain a loan so small as not in the whole to
amount to uiore than_one-fou'rth,of_ its ordi-
nary annual income; at a time when the
Governments of Europe, although involved
in debt, and with their subjects lit-avilv bur-
dened with tixation, readily obtain loans of
any amount at g-{Pally reduced rates ofinterest.
It would be unprofitable to look further
into this anomalous state of things, but I can-
not conclude without adding that, for a gov-
slight recommendation of it to public consid--ernment which has ‘paid off its debts of two
wars with the largest maritime power of
Europe, and now owing a debt which is
almost next to nothing when compared with
its boundless TESOUTCFS. a government the
strongist in the world, because E-minating
from the popular will, and firmly rooted in
the affections of a great and free people, and
whose fidelity to its cngagi-mi-nts has never
been questioned; for such 11 govciniiicnt to
have tendered to the capitalists ofotl.-er coun-
tries an opportunity for a small investment
of its stock, and yet to have failed, implies
t‘lll'u:f' the most unfounded distrust in its good
faith, or a good purpose, to obtain which, in
the course pursued is the most fatal which
could have been adopted.
It has now become obvious to all men,
that the Government must look to its own
means for supplying its wants, and it is con-
soling to know thatthese means .'tl'eal_t0g61l)-
er adequate for the object. The Exchequer
ifadopted will greatly aid in bringing alout
this result. Upon what I regard as a well
founded supposition that its bills would be
readily sought for by the public creditors.
5.; that the issue" would in a short 1’...-3
the maximum of 815000.000. ~
that $10,000,000 would there-b=' ‘ - 2: .
the available means ofthe 'I're-.ua.:* ‘~''}*.’.- 9:.
cost or charge. Nor can I fail to urge the
great and beneficial effects which would be
produced in aid ofall the active pursuits oflile.
Its effects upon the solvent State Banks,
which it would force into liquidation those
ofan opposite characterthrough its weekly
settlements, would be highly beneficial; and
with the advantages of a sound currency, the
restoration of confidence and credit would
follow, with a numerous train of blessings.
My convictions are most strong that these
benefits would flow from theadoption of this
measure; but ifthe result should be adverse
there is this security in connection with it,
that the law creating it may be repealed at
the pleasure of the Legislature, without the
slightest implication of its good faith.
I recommend to Congress to take into con-
sideration the propriety of reimbursing a fine
......‘
at the time of the attack and defence of -thiit
city and paid by him. \Vithout designing
any reflection on thejudicial tribunal which
imposed the fine, the remission at this day
may be regarded as not unjust or inexpedie-ni.
'I‘he voice of civil authority was heard
amidstthe glitter of arias and obey:-d by
those who held the sword, thg giving
achievement. .
If the laws were offended, their majesty
was..fully vindicated ; and although the pen-
alty incurred and paid, is worthy of little re-
gard in a pecuniary point of view, it Cari
hardly be doubted that it would begratifying
to the war-worn veteran, now in retirement
and in the winter of his days, to be relieved
from the circumstances in which thiitjudge-
meat placed him.
There are cases in which public function-
aries may be called on to weigh the public
interest against their own personal hazards,
worthy motives, or an overruling sense of
public danger and public necessity, punish-
ment may well be restrained within that
ity of the law, and the subjection oft .s.:-. 1‘L‘iii-
tary to the civil power.
The defence of New Orleans, -till-.« ii:
saved a city from the hands of the N.-4.~:'*=_‘.'.
placed the name of General Jackson among
those of the greatest Captains of the age. and
illustrated one of the brightest p9S'93_°f 0'"
history. Now that the causes ofexcitement
existing at that time, have cqflsed f0 Opefale.
it is believed that the remission of this fine,
av. whatever 0
might cause the eminent man who incurred
general
People.
I have thus, fellow citizens, acquitted my-
selfof my duty under the Constitution,.by
tirely obvious.
The credit of the government may be re-
garded as the very soul of the Government
itself-——a principal of vitality without which
all its movements are languid and all N8
operations embarrassed. In this spirit the
all pretext for partiality or favoritism. It
was furthermore proposed to invest this
Treasury agent with authority to receive on
Executive felt himself bound by,the most
imperative sense of dutyyto submit to Con-
gress at its last session, the propriety of
of individuals, and to grantzcertificatcs there
making a specific pledge‘ of the land fund,
I»
laying before you succintly as I have been
able, the state of the Union, and by inviting.
ance to the country..
most zealously unite its efforts with those of
the legislative Department in the accomplish-'
merit of all that is required to relieve the
wants ofa common constituency, or elevate-
the destinies of a beloved country.
Washington, Dec. 1842. Joan 'I‘vi.zii.
additional lustre to amemorable military.
imposed on General Jackson at New Orleans-
and if the civil law be violated from praise-,
limit which asserts and maintains the author- 1,
f gratification that the remission" ’
and paid it, would be in accordance with tho" -
feeling and wishes of-the American ', -
your attention to measures of much import- ..
The Executive will‘ ,
rb
Norwalk Chronicler