Columbia telescope. (Columbia, S.C.) 1828-1839, December 17, 1836, Image 3
tu re of this character ought not to receive 1
ferther legislative encouragement.
By examining the practical operation of the
fatio for distribution adopted in the ^epo?i j
bill of the last session, we shall <^5?^^.,?*
features that appear equally objectionaole. ,
Let il be assumed, for the sake ot arS"ment> !
that the surplus moneys to be deP0S^n^ ? |
the States have been collected and belon i
them m the ratio of their federal representa- i
lite population? an assumption founded upon
the lact that any deficiencies m our future
revenue from impost* and public lands must
be made up by direct taxes collected from the
State* in that ratio. It is proposed to distri
bute the surplus, say $30,000,000, not accor
ding to the ratio in which it has been collected
and' belongs to the people of the States but
in that of their votes in the colleges of ^lec
tors of President and Vice President. Ihe
effect of a distribution upon that ratio is
shown by the annexed table, marked A.
By an examination ot that table, it wi e j
perceived that in the distribution of a surplus j
of 830*000,1)00 upon i hat basts, there is a .
o-reat departure from the principle which re
gards representation as the true measure of
" taxation ; and it will be found t fci t.ie ten
dency of that departure will be to increase
whatever inequalities have been supposed to
attend the operation of our h deral system in
respect to its bearings upon the different in
teresu of the Union. In making the basis of
representation the basis of taxation, the fram
es* of the Constitution intended to equalise
' the burdens which are necessary to support
the Government ; and the adoption ot that
rlli*jok while it accomplished this object, was (
^so the means of adjusting other great topics ;
?rtsmg oat of the conflicting views respect
ing' lfaeptrfitical,eqaa lity of the various mem
bers of the Confederacy. Whatever, there**
fore, disturbs the liberal spirit of the compro
mises which established a rule ol taxation so |
iust and eouitable, and which experience has
proved to be so well adapted to the geniiw
and habits of our people, should be received
with the greatest caution and distrust.
A bare inspection, in the annexed table, ot
the differences produced by the ratio used in
thedeposite aci, compared with the results
of a distribution according to the ratio ot
direct taxation, must satisfy every unpreju
diced-mind that the former ratio contravenes
the spirit of the Constitution, and produces a
-degree of injustice m the operation of the
Federal Government which would be fatal to
the hope of perpetuating it. The ratio or
direct taxation, for example, the State
Delaware, in the collection of $30,00(U)00 cn
revenue, would pay into the Trc^nry $188j
716; .and in a distribution of ^0U,UUU,UW
she would receive back from the Government
according to the ratio of the deposite bill,
the sum of ?306,122 ; and similar results
would follow the comparison between the
small and the large States throughout the
Union ; thus realizing to the smail States an
advantage which would be doubtless as unac
ceptable* to them as a motive for incorporating
the ^principle in any system which wouid
i produce it, as it would be inconsistent with
tha /iglits and expectations of the large
States. It was certainly the intention of that ,
provision af the Constitution which declares
that "all -duties, imposts, and excises shall
?be uniform throughout the United States,
to make the burdens of taxation fall equally
n pen- the people, #u whatever State of the
Union they .nay reside. But what would
be the - value of such a uniform rule, it the
moneys raised by it could be immediately
leturned by a different one, which will give
to the people of some States much more, and
to those of others much less than their fair
proportions ? Were the Federal Government
to exempt, \n express terms, the imports, pro
duct*, and manufactures ot some portions or
the country trom ali duties, while it imposed
cavr-eoes on others, the injustice could not
be greater. It would be eaiy ? to show how,
by the operation of such a principle, the large
States of the Union would not only have to
contribute their just share towards the sup
port of }he Federal Government, but also
b?ave-to- bear in some degree the taxes nece?
-*Sy to support the government, of their small
er sisters ; but it is deemed unnecessary to
Hate t,be details where the general principle
is so^ibvious.
A system liable to such objections can nev
er be supposed -to have been sanctioned by the i
fraraers of the Constitution, when they con
ferred on Congress the taxing power ; and 1
feel persuaded that a mature examination or
the subject will satisfy every one that there :
are insurmountable difficulties in the opera- j
tion of any plan which can be devised, or .
collecting revenue for the purpose of distribu- j
tia? iU Congress i? only authorized to levy (
taxes *to pay* the debts and provide fur tie com- I
mon defence and general welfare of the Imted
States " There is no such provision as would I
authorize Congress to collect together the j
property of the country, under the name ot :
revenue, for the purpose of dividing it, equal- |
]y or unequally, among the States or the Feo
pje. Indeed," it is not probable that sach an ;
idea ever occurred to the States, when they
adopt. the Constitution But, however this |
may be, the only safe rule tor us, in inter
preting the powers granted to the Federal j
Government, is to regard the absence of ex
press authority to touch a subject so impor
tant and delicate as this is, as equivalent to
a prohibition. .
Even if our powers were less doubtful in
this respect, as the Constitution now stands,
there are considerations afforded, by recent j
experience, which would seem to make it
our duty to avoid a resort to such a system.
All will admit that the simplicity and econ
omy of the State Governments mainly depend
on the fact that money has to be supplied to
support them by the same men, or their agents ,
who vote it away in appropriations. Henc^,
wh^p there are extravagant and wasteful ap
propriations, there nvist be a corresponding
increase of taxes; and the people, becoming
awakened, will necessarily scrutinize the
character of measures which, thus increase
their burdens. By the watchful eye of seit- j
interest, the agents of the people in the State ,
Governments are repressed, and kept within j
the limits of a just economy. But it the ne- i
cessity of levying the taxes be taken trom i
t+iose who make the appropriations, and i
thrown upon a more distant and less jesponsi
ble set of public agents, who have power to ,
approach the people by an indirect and steal
thy taxation, there is reason to fear thar pro
dicrality will soon supersede those character- j
istics which have thus far made us look with j
so much pride and confidence to the State i
Governments as the main stay of our Union :
and liberties. The State Legislatures in- i
stead of studying to restrict their State ex- j
penditures to the smallest possible sum, will
claim credit for their profus on, and harrass j
the General Government for increased sup- i
plies. Practically, there would soon be but ]
one taxing power, and that vested in a body ;
of men far removed from the people, in which j
the farming and mechanic interests would 1
scarcely be?represented. The Slates would ]
gradually lose their purity as well as their in
dependence ; thev would not ?iare to murmur
at the proceedings of the General Govern
k meat, Test thev should lose their supplies ; all
j would be merged in a practical consolidation, i
j cemented bv widespread corruption, which
I could only be eradicated by one of those
I bloody revolutions which occasionally over
! throw the despotic systems of the old world.
In all the other aspects in which I have
been able to look at the effect ot such a prin
ciple of distribution upon the best interests of
1 the country, I can see nothing to compensate
for the disadvantages to which 1 have advert
ed. If we consider the protective duties,
which are, in a great degree, the source of the
surplus revenue, beneficial to one section of
the Union and prejudicial to another, there is
I no corrective for the evil in such a plan of
distribution ; on the contrary, there is reason
to tear that all the complaints which have
sprung from this cause would be aggravated.
Every one must ba sensible that a distribution
I of the surplus must beget a disposition to
cherish the means which create it; and any
system, therefore, into which it enters, must
have a powerful tendency to increase rather
| than diminish :he tariff. If it were even ad-?
i mitted that the advantages of such a system
i could be made equal to all the sections of the
| Union, the reasons already so urgently calling
' for a reduction of the revenue would, never
? theless, lose none of their force ; for it will
, always be improbable that an intelligent and
virtuous community can consent to raise a
I surplus for the mere purpose of dividing it,
i diminished as it must inevitably be by the
i expenses of the various machinery necessary
! to the process.
I The safest and simplest mode of obviating
I all the difficulties which have been mentioned
i is, to collect only revenue enough to meet the
| wants of the Government, and let the people
keep the balance of their JJfOperty in their
own hands, to be used for their own profit.
Each State will then support ils own Govern
! ment, and contribute its due share towards
the support of the General Government. ?
Theri^would be no surplus to cramp and les
sen the resources of individual wealth and
enterprise, and the banks would be left to
t their ordinary means. Whatever agitations
i and fluctuat ons might arise from our unfortu
nate paper system, they could never be attri
| buted, justly or unjustly, to the action of the
Federal Government. There wou d be some
I guaranty that the spirit of wild speculation,
I which seeks to convert the surplus revenue
| into banking capital would be effectually
i checked, and that the scenes of demoraliza
; tion which are now so prevalent through the
land would disappear.
Without desiring to conceal that the expe^
rience and observation of the last two years
have operated a partial change in my views
upon tins interesting subject, it is neverthe
less regretted that the suggestions made by
me, m my annual messages of 1829 and 1830,
have been greatly misunderstood. At that
time, the great struggle was begun against
the latitudinarian construction of the Consti
I tuticn which authorizes the unlimited appro
priation of the revenues of the Union to inter
nal improvements within the States, tending
to invest in the hands, and place under the
control of 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 time, the con
dition of the manufacturing interests was such
as t > create an apprehension that the duties
on imports could not without extensive mis
chief, be reduced in season to prevent the ac
cumulation of a considerable surplus, after the
payment of the national debt. In view of the
i dangers of such a surplus, and in preference
to its application to internal improvements,
i in derogation of the rights aud powers of the
| States, the suggestion of an amendment of
j the Constitution to authorize its distribution
! was made. It was an alternative for what
were deeruetf greater evils? a "temporary re
sort to relieve an over-burdened Treasury,
untiLthe Government could, without a ?udd?n
and destructive revulsion ia the business of
the country, gradually return^ the just priii- I
c;ple of raising no more revenue Jfrom the
People, in taxes, than is necessary for its eco
nomical support. Even that alternative was
not spoken of but in connexion with an amend
ment cf the Constitution.
No temporary inconvenience can justify .
the exercise of a prohibited power, or a power
not granted by that instru nent ; and it was
from n convietion that the power to distribute
| even a temporary surplus of revenue is of that
i character, that it was suggested only in con
nexion with an appeal to the source of ail
t legal power in the General Government ?
tie States which have established it. No
i such appeal has been taken, and, in my opin
ion, a distribution of the surplus revenue by
Congress, either to the States or the People,
is to be considered among the prohibitions of
the Constitution. As already intimated, my
views have undergone a change, so far as to be
convinced that no alteration of the Constitu
tion in this respect is wise or expedient. ?
The influence of an accumulating surplus upon
the legislation of the General Government and
the States, its effe cts upon the credit system of
the country, producing dangerous extens ions
and ruinous contractions, fluctuations in the
price of property, rash speculation, idleness,
extravagance, and a deterioration of morals,
have taught us the important lesson, that any
transient mischief which may attend the re
duction of our revenue to the wants of our
Government is to be qorne in preference to
an overflowing Treasury.
i beg leave to call your attention to another
subject intimately associated with the prece
ding one ? the currency of the country.
It is apparent, from the whole context of
the Constitution, as well as the history of the
i times which gave birth to it, that it was the
purpose of t lie Convention to establish a cur
rency consisting ofthe precious mstals. These,
from their peculiar properties, which rendered
them the standard of value iu all other coun
tries, were adopted in this, as well to establish
its commercial standard in reference to foreign
countries, bv a permanent rule, as to exclude
the use of a mutable medium of exchange,
such as of certain agricu.tural commodities,
recognized bv the statutes of some States as a
tender for debts, pr the still more pernicious
expedient of a paper currency. The last,
from the experience of the evils of the issues
of paper during the Revolution, had become
so justly obnoxious, as not^ only to suggest
the clause in the Constitution forbidding the
emission of bills of credit by the States, but
also to produce that vote in the Convent on
which nega'.ived the proposition to grant pow
er to Congress to charter corporations ; a
proposition well understood at the time, as
intended authorize the establishment of a
national bank, which was to issue a currency
of bank notes, on a capital to be created to
some extent out of Government stocks. Al
thoujh this proportion was refused by a direct
vote of the Convention, the object was after
wards in effjet obtained, by its ingenious ad
vocates, through a strained construction of
the Constitution. The debts of the Revolution
were funded at prices which formed no equiv
alent compared with the nominal amount of
the stock, and und -r circumstances which ex
posed the motives ofsonn of those who parti
cipated in the passage of the act, to distrust.
The facts that the value of the stock was
greatly eahanced by the creation of the bank,
that it was well understood that suc/i ttould
be the casi\ and that some of the advocates
of the measure were largely benefitted by it,
belontr to the history cf the times, and are well
calculated to diminish the respect which might
otherwise have been due to the action of the
Conorress which created the institution.
On the establishment of a national bank,
it became the interest ot its creditors that gc> d
should be superceded by the paper of the bank
as a general currency. A value was soon a -
lached to the gold coins, which made their
exportation to foreign countries as a "pan
tile commodity, more profitable than tl'e.f
tention and use at home as money. It tol low
ed as a matter of course, if not designed by
those who established the bank, that t le an i
became, in effect, a substitute for the Mint ot
the United States.
Such was the origin of a national bank cur
rency, and such the beginning ot those diffi
culties which now appear in the exces^ve^
sues of the banks incorporated by the various
SAkhougl> it may not be possible, by any ?
mslative means wiihm our power, to chang
at once the system which has thus been in
troduced, and lias received the acqUl^Cein,.
of all portions of the country, it is certain y
our duty to do all that is consistent with our i
constitutional obligations, in preventing the
mischiefs which are threatened y i s un
extension. That the efforts of the fliers of
our Government to guard against ?t by a con
stitutional provision were founded on an in
timate knowledge of the subject, has been fre
quently attested by the bitter experience of
the countrv. The same causes which led
them to refuse their sanction to a power au
thorizing the establishment of incorporations
for banking purposes, now exist in a mucd
stronger decree to urge us to exert the utmost
vi^il^nce" in calling into action the means ne
cessary to correct the evils resulting from the
unfortunate exercise of the power ; and it is
to be hoped that the opportunity tor effecting
this great good will be improved before tlie
country witnesses new scenes of embarrass
ment and distress. ?
Variableness must ever be the characteris
tic of a currency, of which the precious metals
are not the chief ingredient, or which can be
expanded or contracted without regard to the
principles that regulate the value of those
metals as a standard in the general trade ot
the world. With us bank issues constitute
such a currency, and must ever do so until
thev are made dependent on those just prov
portions of gold and silver, as a, circulating
medium, which experience has proved to be
necessary, not only in this but . other
commercial countries. Where tnose propor
tions are not infused into the circulation, and
do not control i', it is manifest that prices must
vary according to the tide of bank issues, and
the' value and stability ot property must stand
exposed to all the uncertainty which attends
the administration of institutions that are con
stantly liable to the temptation of an interest
distinct from that of the community in which
they are established.
The progress of an expansion, or rather a
deprecation of ihe currency, by excessive
bank issues, is always attended by a ioss to
the laboring classes. This portion ot the
community have neither time nor opportunity
to watch the ebbs and flows of the money
market. Engaged from day to day in their
useful toils, they do not perceive that, although
their wages are nominally the same, or even
somewhat higher, they are greatly reduced, in
fact, by the rapid in ;rease of a spurious cur
rency, which, as it appears to make money
abound, they are at tirst inclined to cunsidi r
a blessing. It is not so with the speculator,
by whom this operation is better.undtrstood,
and is made to contribute to his advantage.?
It is not until the prices of the necessaries w,
life become so dear that the. labonug classes
cannot supply their wants out of their wages,
that the wages rise and gradually reach?
usUy proportioned rate to that of the products
Jof fhenVlabor. Wtien thus, by the deprecia
tion in consequence of the quantity of pa per in
circulation, wages as well as prices become
exorbitant, it is soon found that the whole ef
fect of the adulteration is a tariff on our home
industry for the benefit of the countries where
gold and silver circulate, and maintain unifor
mity and moderation in prices It is then
perceived that the enhancement of the price ot
and and labor produce a correspjnding in
crease in the price of products, until these
products do not sustain a competition with
similar ones in other couutries, and thus both
manufactured and agricultural productions
cease to bear exportation from the country ot
the spurious currency, because they cannot be
sold for cost. This is the process by which
specie is banished by the paper of the banks.
Their vaults are soon exhausted to pay tor
foreign commodities ; the next step is a stop
pa cre? or specie payment ? a total degradation
of paper as a currency? unusual depression ol
prices> the ruin of debtors, and the accumula
tion of property in the hands of creditors and
cautious capitalists.
It was in view of these evils, together with
the danorerous power wielded by the Bank ot
the United States, and its repugnance to our
Constitution, that I was induced to exert the
power conferred upon me by the American
People to orevent the continujnce ot that in^
stitution. 4 Bat, although various dangers to
our republican institutions have been obviated
"by the failure of that bank to extort from t,?e
Government a renewal of its charter, it is ob
vious that little has been accomplished except
a salutary change of public opinion, towards
restoring to the country the sound currency
provided for in the Constitution. In the acts
of several of the States prohibiting the circu
lation of small notes, and the auxiliary enact
ments of Congress at the last session, forbid
ding their reception or payment on public ac
count, the true pol cy of the country has been
advanced, and a larger portion of the precious
metals intused into our circulating medium.?
These measures will piobably bo followed up
in due time by the enactment of State laws,
banishing from circulation bank notes of still
higher denominations; and the object may be
materially promoted by fur'.her acts of Con
fess, forbidding the employment, as fiscal
a<rents, o i such banks as continue to issue
notes of iow denominations, and throw imped
iments in the way of the circulation of gold
and silver. *
The effects of an extension of barik credits
and over issues of bank paper have been
strikingly illustrated in the sales of the pub
lic hnds. From the returns made by the
various Registers and Receivers in the early
part of last summer, it was perceived that the
receipts arising from the sales of the public
la^ds were increasing to an Unprecedented
amount. In effect however, these receipts a
mounted to nothing more than credits in
bank. The banks lent out their notes to
speculators ; they were paid to the Receivers,
and immediately returned to the banks, to be
lent out again and again, being mere instru
ments to transfer to specula' ors thu most valu
able public land, and pay the Government by
a credit on the books ot the banks. Those cred
its On the books of some of the Western banks,
usually called deposites, were already great
ly beyond their immediate means of payment,
and were rapidly increasing. Indeed, each
speculation furnished mentis for another; for
no sooner Iiaci one individual or company paid !
in tin: notes, than they v^ere immediately lent
to another fer a like purpose ; and the banks
were extending- their business and their issues I
so largely as to alarm considerate men, and ,
render it doubtful whether these bank cred- :
its, if permitted to accumulate, would uiti- !
ni?tely be of the least value to the Govern- j
ment. The spirit of expansion and specula- '
tiDn was not confined to the> deposite banks,
but pervaded the whole inulmuiie of banks
throughout the Union, and was giving rise to 1
new institutions to aggravate the evil.
The safety of the public funds, and the interest of i
the People, generally, required that these operations I
should be checked, and it became the duly of every j
branch of the General and State Governments lo j
adopt all legitimate and proper means to produce |
that salutary effect. Under this view of my duty, |
I directed the issuing of the jrder which will be laid
before you by the Secretary of the Treasury, requi
ring payment lor the public lands sold to be made in
specie, with an exception, until the 15th of the
present month in favor of actual settlers. This
measure has prodilcfcd many salutary consequences.
It checked the career of the Western banks, nnd
i gave them additional strength in anticipation of the
pressure which has since pervaded our Eastern as
well as the European commorcial cities. By pre
venting the extension of the credit system, it mea
surably cut off the means of speculation, and re
tarded its progress in monopolizing the most valuable
of the public lands. It has tended to save the new
States from a non resident proprietorship, one of the
greatest obstacles to the advancement of a new
country, and the prosperity of an old one. It has
tended to keep open the public lands for entry by
emigrants, at Government prices, instead of their
being compelled to purchase of speculators at doubk
or treble prices. And it is conveying into the'I!*^
rior large sums in silver and gold, there to enter
permanently into the currency of the country, and
place it on a firmer foundation. It is confidently be
lieved that the country will find, in the motives
wbltHv induced that or?-er, and the happy consequen
ces which will have ensued, much to commend, and
nothing to condemn.
It remains for Congress, if they apppovc the poli
cy which dictated this order, to loilow it up in its.
various bearings. Much good, in my jndgment,
would be produced by prohibiting sales of the pub
lic lands, except to actual settlers, at a reasonable
I reduction of price, and to limit the quantity which
shall be sold to them. Although it is believed the
General Government never ought to receive any
thing but the constitutional currency in exchange
for tnc public lands, that point would be of less im
portance if the lands were sold for immediate set
tlement and cultivation. Indeed, there is scarcely a
mischief arising out of our present land system, in
cluding the accumulating surplus of revenue, which
would not be remedied at once by a restriction on
land sales to actual settlers ; and it promises other
advantages to the country in general, and to the
new States in particular, which cannot fail to receive
.the most profound considemtion of Congress.
Experience continues to realize the expectations
entertained as to the capacity of the State banks to
perform the duties of fiscal agents for the Govern
ment, at the time of the removal of the deposites.
It was alleged by the advocates of the Hank of the
United States, that the State banks, whatever might
be the regulations of the Treasury Department,
could not make the transfers required ??y the Gov
ernment, or negotiate the domestic exchanges of the
country. It is now well ascertained that the real
domestic exchanges, performed through discounts,
by the United States Bank and its twenty-five
branches, were at least one-third less than those of
the deposite banks tor an equal period of timo ; and
if a comparison be instituted between the amounts
of service rendered by these institutions, on the
broader basis which has been. used by the advocates
of the United States Bank, in estimating what they
consider the domestic exchanges transacted by it,
the resnlt will be still more favorable to the deposit
b inks.
The whole amount of public money transferred by
the Bank of the United States in 1832 was 816,000,
000. The amount transferred and actually paid by
the deposite banks in the year ending the 1st of Oc
tober last, was $39,319,899 ; the amount transferred
and paid between that period and the 6th of Novem
ber, was $5,399,000; and the amount of transfer
warrants outstanding, on that day was $14>450,000; j
making an aggregate of $59,168,894. These enor- j
mous sums of money first mentioned have been
transferred with the greatest promptitude and regu
larity ; and the rates at which the exchanges have
been negotiated previously to the passage of the
deposite act were generally below those charged by
tbe Bank of tha United State*. Independently of
these services, which are far greater than those
rendered by the United States Bank and its twenty
&v? branches, a number of the deposite banks have,
with a commendable zeal to aid in the improvement
of the currency, imported from abroad, at their own
expense, large sums of the precious motais for coin
age artd circulation.
In the same manner have nearly all tho predictions
turned out in respect to the effect of the removal of
the deposites ? a step unquestionably necessary to
prevent the evils which it was foreseen the bans
itself would endeavor to create in a final struggle to
procure a renewal of its charter. It. may be thus,
too, in sdfhe degree, with the further steps which
may be taken to prevent the excessive issue of other
bank paper; but it is to bo hoped that nothing
will now deter the Federal and State authorities
from the firm and vigorous performance of their
duties to themselves and to the People in this re
spect.
In reducing the revenue to the wants of the Gov
ernment, your particular attention is invited to those
articles which constitute the necessaries of life.
The duty on Salt was laid as a war tax, and was no
doubt continued to assist in providing for the pay
ment of the war debt. There is no article, the re
lease of which Irom taxation would be felt so generally
and so beneficially. To this may be added, all kinds
of fuel and provisions. Justice and benevolence
unite in favor of releasing the poor of our cities from
burdens which are not necessary to the support of
our Government, and tend only to increase the
wants of the destitute.
It will be seen by the report of the Secretary of
the Treasury, and the accoompanying documents,
that the Bank of the United States has made no
payment on account of the stock held by the Gov
ernment in that institution, although urged to pay
any portion which might suit its convenience, and
that it has given no information when payment may
be expected. Nor, although repeatedly requested,
has it furnished the information in relation to its
condition, which Congress authorized the Secretary
to collect at their last session. Such measures as
are within the power of the Executive have been
taken to ascertain the value of the stock, and pro
cure the payment as early as possible. .
The conduct and present condition of that bank,
and the great amount 'of capital vested in it by the
ijnited Statos, require your careful attention. Its
charter expired on the third day of March last, and
H has now no power but that given in the 21st sec
tion, 44 to use the corporate name, style and capacity,
for the purpose of suits, for the final settlement and
liquidation of the affairs and accounts of the corpora
tion, and for the sale and disposition of their estate,
reafr, personal and mixed, but not for any other pur
pose, or in any other manner whatsoever, nor for a
period exceeding two years after the expiration of
the said term of incorporation." Before the expira
tion of the charter, the stockholders of the Bank
obtained an actof incorporation from the Legislature
of Pennsylvania, excluding only the United States.
Instead of proceeding to wind up their concerns, and
pay over to the United States the amount due on
account of the stock held by them, the President and
Dtrectors ofthe old Bank appear to have transferred
the books, papers, notes, obligations and most or all
of its property, to this new corporation, which enter
ed 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
I have been used as its own, and again put in circu
j lation. That the old Bank had no right to issue or
I re-issue its notes after the expiration of its charter,
cannot be denied ; and that it could not confer any
such right on its substitute any more than excrcisc it
itself, is equally plain. In law and honesty, the
notes of the Bank in circulation at the expiration of
its charter should have been called iu by public ad
vertisement, paid up as presented, and together with
those on hand, cancelled and destroyed. Their re
issue is sanctioned by no law, and warranted by no
necessity. If the United States be responsible in
their stock for the payment of these notes, their re
issue by the new corporation, fortheir^own profit,
is a fraud on the Government. If the United States
is not responsible then there is no legal reponsibdity
in any quarter; and it is a fraud on the country. ?
They arc the redeemed notes of a dissolved partner
ship, but, contrary to the wishes of the retiring part
ner, and without his conscnt, are again re-issued and
circulated.
It is the high and peculiar duty of Congress to
dccidc whether any turthcr legislation be necessary
for the security of the large amount of public prop
erty now held and in use by the new B;ink, and for
vindicating the rights of the Government, and com
polling n speedy and honest settlement ttitfinlitlie
creditors of the old Bank, public and private, rtr
whether the subject shall be left to the power now
possessed by the Kxerutive and Judiciary. It re
m.-tin? to be seen whether the persons who, as mana
gers of the old Bank, undertook to control the Gov
ernment, retained the public dividends, abut their
doors upon a eommi'tee of the House of Represen
tatives, and filled the country with panic to ut-tom
plish their own sinister objects, may now, as rnana
gers of the new Bank, continue, with impunity, to
flood the country with a spurious currency, use the
seven millions of (Government stock for their own
profit, and refuse to the United States all informa
tion as to the present condition of their own proper
ty, and the, prospcct of recovering it into tneirj
own possession. i
The lessons taught by the Bank of tne United!
States cannot well be lost Upon the American People. I
They will take care never again to place so ire- j
mendous a power in irresponsible hands; and it i
will be fortunate if they seriously consider the con
sequences which are likely to result on a Miinllcr '
scale from the facility with which corporate powers
are granted by their State Governments.
It w believed that the law of the last session regu
lating the deposite banks operates onerously Hp]
unjustly upon them in many respects, an 1 it is hopetl
that Congress, on proper representation, will adopt
the modifications w hich arc necessary to prevent this
consequence. . -j
The report of the Sci-tetary of War ad interim,
and the accompanying document*, all of which are
herewith laid before you, will give yoU a full view
of the diversified and important operations eft hat
Department during the past year.
The military movements rendered necessary by
the aggressions of the hostile portions of the Semi
nole ami Creek tribes of Indian*, and by other cir
cumstances, have required file active employment
of nearly our whole regular force, including the ma
rine conos, and of large bodiea-of militia and vol un
tecrs. Witli all these event*,' 00 for as they were
known at the seal of Government betbie the termi
nation of your last sesskm, you are already acquaint
ed ; fl'id it is therefore only needfol inflfcr olace t ?
lay before vj? a brief summary
occurred.
The war 1
was, on low _
of onr frostier.
enemy; and$ as
fyr the aceoi
ance of the a
course of this
which the bravery aud'i , ,
men were conspicuously displayed^tnd which I have
deemed it proper to notice, in respect to the former,
by the granting of brevet rank for gallant services in
the Held. But as the lorce of the Indians was not so
far weakened by these partial successes as to lead
them to submit, and as their savage inroads were
frequently repeated, early measures were taken for
placing at the disposal of Governor Call, who, as
commander-in-chief of the territorial militia, had been
temporarily invested with the command, an ample
force, for the purpose of resumiug offensive opera- ,
tions, in the most efficient manner, as soon as the '
season should permit. Major General Jcsup w as
also directed, on the conclusion of his duties in the j
Creek country, to repair to Florida and asaumc the j
commands
The result of the first movement. made by the
forces under the direction of Governor Call, in Octo
l>er last, as detailed in the accompanying papers, ex
cited much surprise and disappointment. <?? full
explanation has been required of the causes which
led to the failure of that movement, but has not yet
been received. In the mean time, as it was feared
that the health of Governor Call, who was under
stood, to have suffered much from sickness, might not
be adequate to the crisis, and as MajorGeneral Jeaup
was known to have reached Florida, that officer was
directed to assume the command, and to prosecute
all needful operations with the utmost promptitude
and vigor. From the force at his disposal, arid the
dispositions he has made, and is instructed to m ke, '
and frdm the very efficient measures which it is
since ascertained liave been taken by GbvernorCall,
there is reason to hope that they will soon be en
abled to reduce the enemy to subjection. In the
mean time as you will perceive from the report of
the Secretary, there is urgent necessity ;or further
appropriations to suppress these hostilities.
Happily for the interests of humanity, the hostil
ities with the Creeks were brought to a close soon
after your adjournment, without that effusion of
blood which at one time was apprehended as inev
itable. The unconditional submission ol 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 Indians, and the causes of their
hostilities, requested by the reeoltxtibn of the House
of Representatives on the first :o? July' last, to bo
maJ# by the F/eaident, is naw.guiuz_ua, through the
agency of commissioners appointed ?>r that purpose.
Their report may be expcctod during yoor present
session.
The difficulties apprehended in the Cherokeo
country have been prevented, and the peace and
safety of that region and its vicinity effectually se
cured by the timely measures taken by tho War
Department, and still continued.
The discretionary authority givfn to Gen. Gaines
to crosi the Sabine, and to occupy a. position as far
west as Nacogdoches, in case he shaufd deem such a
step necessary to the protection of the frontier, and
to the fulfilment of tho Stipulations contained in our
treaty with Mexico, and the movement subsequently
made by that officer, htu e been alluded to in a for
mer part of this messaged At the date of the latest
intelligence from Nacogdoches, our troops were Vet
at that station ; but the officer who has succeeded
General Gaines, has recently been advised that, from
the facts known at the scat of Government, there
would seem to be no adequate cause for any longer
maintaining that position ; and he wis acordingly
instructed, in case the troops were not already with
drawn under the discretionary powers before pos
sessed by him, to give requisite orders for that ptlf- 1
pose, on the receipt of the instructions, unless he <
shall then have in his possession such information as
shall satisfy him that the maintenance of the post
is essential to the protection of our frontiers, and to
the dufc execution of our treaty stipulations, as pre
viously explained to him.
Whilst the necessities existing during the present
year for the service ef militia and volunteers, Mkc
furnished new proofs of the patriotism of our fellow
citizens, they have also strongly illustrated the
importance of an increase in the rank and file of the
regular army. The views of this subjcct* submitted
by the Secretary of War in his report, meet my en
tire concurrence, and are earnestly commcndcd to
the deliberate attention of Congress. In this con
nexion it is also pfoper to remind you that the defects
in our present militia system are every day render
ed more apparent. The duty of making further pro
vision by law for organizing, arming and disciplining
this arm of defence, has been so repeatedly present
ed to Congres by myself and my predecessors, that
I deem it sufficient, on this occasion, to refer to the
last annual message and to former executive commu
nications in which the subject has been discussed.
It appears, from the reports of the officers charged
with mustering into service the volunteers called for
under the act of Congress of the last session, that
more presented themselves at the jpjaqe qf rendez
vous in Tennessee, than were sufficient' to meet the
requisition which had been made by the Secretary
of ?Var upon the Governor of that Slate. . This was
occasioned by the omission of the Governor to ap
portion the requisition to the different .regiments o j
militia, so as to obtain the proper numbef of troops,
and no more. It seems but just to the patriotic citi
zens who repaired to the general rendezvous, under
circumstances authorizing them to believe tliat their
services were needed, and would be accented; that
the expenses incurred by them, while absent from
their homes, should be paid by the Government. I
accordingly recommend tint a law to this effect be
passed by Congress, giving them a compensation
i which will cover their expenses on the march to and
J from the place of rendezvous, arid while there; in
connexion with which, it will also be nroper to make
' provision for such other equitable claims, growing
i Out of the service of the militia, as may not be cni
j braced in the existing laws.
On the unexpeetcd breaking out of hostilities in
I Florida, Alabama arid Georgia, it became necessary I
! irt some cases, to lake the property of individuals for
; public use. Provision should be made, by law, for
I indemnifying ihc owners; and I would also repectfully
j suggest whether some provision Utay not bo made,
i consistently with the principles of our Government,
i for the relief of the sufferers by Indian depredations,
I or by the operations of our own troops.
j No tiifte was lost, alter the making of the requisite
! appropriations, in resuming the great natiouul work
? of completing the unfinishad fortifications on our
' seaboard, and of placing them in a proper state o!
j defence. In consequence, however, of the very
! late day at which those bills were passed, but little
j progress could be made during the season which has
i: ) us t closed. A very large amount of the moneys
granted at your last session according! yTeroairfs u n
' expended ; but as the work will be again resumed
j at the earliest moment in the coming spring, the
b^ftnee of tho existing appropriations, ana -in sevc
; ral cases, will be laid before you, -with the
! proper estimates, further silms for the like objerts,
may be usefully expended dilring tile nett year.
[RerncnUder ntz' keek.}
Sheriff's Sales.
TjHirrif.L be Sold helbre the Court limine in the
ww tfivt r. of Colombia on the first Monday aiid
Tuesday in January nctt, on Kund(]T tvriti Jof
fieri facias, w itliirr the legal hours of tale ?
lOOacrcs of Lnud* funst* orlc*?, Mtuaied intfce DwJ-_
trie t of Richland, bnuhdfd Sbirtfi by Pauldiiig4J.and?
north hy T?nds originally btfoflgtri* to the * Eatutc or
John Carter, west by Congarrc l{i\< r, and knnwuhy
tho name of Walnut Mifl Trait, at the suit of I'ttf ?. iif
heeler <L Co. v?. Robert Driuldy. adffj'f of (*.
rin.
The House and I.ot iu the Town of fofulnbia, chnJ
lairing lialf an aere ??t" Tjtnd more or Irs*, bflftnflcJ
North by Plain Street, K*>t by John J. Rawls Lotj
and west by Marion Street, at the suit of John 1\ Kintf j
4*. John Black.
62 ncrrsof Ijimls mOr# or less, whereon Mrs.
Sonib Brown now live*, bounded North Writ by Mi
A. Smith'* I .and, Ertst h y Lands belonging to the
Estate of John D. BroWn, and on all other sides by J <
S. Cnignards ikanda.
Also, one hundred ncresof Land toore cr leaa, oil
the twelve inile branch waters ?<f Jackson's Creek,
hounded South by Dr. 8. Pcrdvals Land, *cat hy
f^and belonging to the Eslatcof John BrtoWn, and
on all other aide* by James S. (taignordft Limit*, at
the suit of Benjamin Hart t'J Surah Brown, Et'flof
Jolin I). ISrown, the same property at the suit of Wil
liam Cord A: Co c.?, Sarah Brow n, Ex'rx of John D.
BroWn. Terms cash, purchaser to pay for SlturiA's
(tapers.
S C. DEBRITIL,S. R. D?
Sheriffs Oflire, Colombia, )
Dec. 10, J83G. - ? 46
Auction.
ON Monday morning next, at 10 o'clock will b*
sold be lore our door, a variety of articles, with
Sugar, Coffee, Baron, ic.,
I'OLOCK, SOLOMON, A: CO. Ai/rtrV
Dec. 1G. 1836 &
Trustees of the S. ?. College*
FWYIIE Board will assemble at the [Siccative officet
: JH in the State llouae, at 7 1*. M., on Saturday*
Dec. I?tb.
? By order of Lis Excellency tho Governor, Presi
dent of the Board. J
EDWARD W. JOHNSTON,
k Sccr< tariL
Dec, 17 y ^ 34
MILLS FOR SALK.
THE subscriber declines aeiling bis plantation in
Lancaster District lierctolbfe advertised for
sale, and wishing to remove to if, offers for sale
his MILLS on Oills Creek, with the landa mttachcd
to them, being upwards of two thousand five htin
I dred acres, all within from five to seven miles of Co
lumbia, having on it an abundance of pine for rac
ing, and Black Jack fbr fire wood. The situation of
the-e Mills is so well known that a dcscrjotion m
unnecessary. If not sold Ijefore the first Monday
in January noxt,they will be offered to ihe higher
bidder, l>efore t lie Court House, in Columbia, on thai
day, w hen the terms will be nmde known ? or on
application bcibro to the subscril?cr"orithe prctnwc*.
JA_MES T. WADE, ?r?
Dec. 17, 1836* ;; 55
Large Estate Sale ~
' IN EQUITY.
Wm. B. Vates and Jane "J
his wife, v? Andrew / Bill for division and a<J
Wallace and Sally f count*
Chesnut Taylor. J
BY order from the Court of Equity, I wifl \>flW
for sale before the Court House in Columbia, ort
the 2d Monday in January next, all that splendid and
well known plantation on the Waterree River, lying
on both sides of the River, coroastiHjf <ef ^kelidlew?
ing tract* of land, to witi ? " ' :
One tract of 1000 acres mOre W trte, lying hi Stlrfc
toronthe t^tst side of the Waterree Ilive^ being
the same tract conveyod by John Chesnut and John
C. Taylor, the 25th fflureh 1812? also a tract oi*
3U0 iic res lying iu Richland, on the Weat side of the
River, being tho same conveyed to JohU C. Taylor
by John Chesnut, the 25th March 1811? alma tract
of 414 i acres lying tu Rictdand, being the saor. xm?
veyed by Robert English to John 'laytor, Sf.'1 tho
I 29th Oct, 1823 ? also, another tract colled the HaUari
' tract, of 320 acrcs, in Richland; all the above tracts
adjoin each other, and form one of tho beat plouta
j- lions in'tho district, making; in all, 20341 -acres.
I ' Also 6(J very prime and likely negroes. Term*
of sole, I, 2, 3 and 4 years, interest froui dutopoy
' able annually, bond, mortgage and good pejtouui
i security ? purchasers te pcy lor aU lieoeasary papers.
1 Salo positive. ^ \ II 'v?t' T
* JAMES k CLARK, C E. R. D. ? >
Dec. ^ ? ,3^-3, : .
English Saddlerth
THE Subscriber has just rec^Wtd front feiVef*
pool and London, per shipdtYicfety and VhOsi
Benet, a large and superior assortment of Saddlery*
consisting in part of toe following articles, vft *
Best quality London rrfciJc Indies and Geittlg*
men's Sumiflefsct Saddle* ? "* 8g\
Ilog-skin spring bar Shafio Saddles 5
do Newmarket, Race do.
Chifney, Part, Pelham and brass Military Bittsf
- A great variety of Spring bitted Heads and K?ins.
Weymouth, Pelham and Snaffle do
Split-eve, double pivot. and plain spring Stifrrupsi
Portable, Suwarrow and knob Spurs;
Gig, 'Pandora and Hiding Whips ;
Gig Harriet**, Patent, Collars, Horse Clothing, Cilrpet
Bags and a great variety of other artine*,
which will be disposed of on accommodating tfcrtus.
Likewise has on hand and makefl lb onfef,
kinds of Saddles, Coach and Gig Harness, made by
the best workmen and of first rate materiali
JOS. THOMSON,
Corner of Broad and Church street;
Dec. 12, 1836. 2is 5f Charleston, S.C.
Horse Creek Jlratlemy*
THE underoigned Trustees hare employed M f
Richard B. Rice, who will Open a Classical
School on the first Monday in January nest, at this
place which is situated in Greenville District, on the
Southwest side of Reedy River, five miles above
the Laurens line. The locality of this place is sur
passed by none in the State, for morals, good water,
and health ; thfere are four ehurches for public
1 worship within reach, and good botird can be nod in
the neighborhood Ibr sixty dollars a year- The
terms ol tuition will be '
For. Latin and Greek, - - - $2^
English Grammar, - ' Ifl
Ufeadfng, Writing and Arithmetic, * - 10
The Trustees hope, from tlie reputation of the
Teacher they have employed and the healthy situa
tion where the school will be established that it will
be patronised by a generous public.
J NO. C. SULLIVAN,
S. CALHOUN.
Tumbling Shoals, Dec. 7th, 1836. 5 1 Gt
THE subscriber offers fiir sale his Residence ire
the Town Of Columbia, and would sell his fur
niture with the hoOse, if desirable to the purchaser;
the house contains eight rooms with fire places; lb?
lot contains ^ne and h. half ncres, with Stable, Barto,
Store-houses, and all necessary out buildings to
I make it one of the most desirable residences in Co
lumbia.
Also.
Three squares of I .and, (formerly Randolph's)
near tlie River, under good board fence, and in fine
'order lor cultivation.
WM. GREGG.
Dec. 17, 1836. i){ ileowtf
IraiK SlBSCKllBERS,
ARE CONSTANTLY RECEIVING FROM
i EUROPE, ADDITIONS TO THEIR STOCK
OF DRY GOODS.
rglllEY have an extensive assortment of foreign
-fiL and domestic goods, comprising I)o ITU, Ro?e
and McGrough Blankets; Cl>ihs, Cassimercs and
Satinetts, of every variety; Flannels; Merinos i
Circassians; Vesting?, of all descriptions.
Hosiery, Linons, Cambrics, and all other article*
in their line.
Thcv have very Iatclv rccrivcd an extensive Jh~
I voice of Goods from f'rancc, C?mpri?ing S??.
Crapes, Bombazines, Velvets, Kid and iJeaver t
Gloves, Silk Hosiery and Gloves, Ribbons, Lawn,
Muslins, and every variety of Fancy Goodsj alt
which they offer for sale 011 the most aocoamor*
dating terms. _
SH ACK E I.FORD, BO AG <fe CO.
Corner of Frnzer's Wharf and Last Bayt
Dec 1 IOi t'harl**lv*.