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an atra sesaon or Congress: but in conse quence of a disagreement between the two Houses, neither thou, nur at an) subse quent period, has there been any legisla tion on the subject. The effort made at the last session to obtain the authority of Congress to punish the use of the public money for private purposes as a crime, a measure attended under otherGovernmenis with signal advantage. was also unsuccess ful, from diversities ofopinion in that body, notwithstanding the anxiety doubiless felt by it .o afford every practicable security. Tfe result of this is still to leave the cus tody of the public money wi:hout those safeguards which have been for sever'd years earnestly desired by the Executive: and as die remedy is only to be found iu the-action of the Legislature. it imposeson me the duty of ag-ain submitting to you the propriety of passing a law, providing for the safe keep ina of the public moneys, and especially to ask that its u.e for pri vate purposes by any offit:ers entrusted with it, may be declared to be a felony, punishable with penalties proportioned to the nagnitude of the offence, These circumstances, added to known defects in the existing laws, and unusual derangements in the general operations of trade, have, during the last three years, much increased the difficulties attendant on the collection, keeping, and disburse ment of the revenue, and called forth cor responding exertions from those having themt in charge. Happily hese have been successful beyond expectation. Vast sums have been collected and disbtrsed by the several Departments with unexpected cheapness and ease: transfers have been readily made to every piart of the Union, however di-ant : and defulcations have beeni far less than might have been antici pated, -from ths absence of adequate legal restraints. Since the efficers oft lie Treas ury and Post Otlice Departments were charged with the custody of most of the public moneys reeeived by them, there have been collected sixty-millions of dlol lars, and, excluding the case of the late collector at New York, the awgregate a mount of losses sustained in tle collection connot, it is believed exceed sixty thou sand dollars. The defalcationof the lWte collector at that city, of the extent and circunistnces of which Congress has been fully infortned, ran through all the modes of keeping the public moucy that have been hitherto in use, and was distinguislt by an aggravated disregard of duty, that broke through the restraints of every sys tem, and cannot, therefore, be usefully re ferred to as a test of the comparative saiv ty of either. Additional inlortnation will i also be furnished by the report of the See- f retary of the Treury, in reply to a call made upon that officer by the Iloute of t Representatives at the last svsitton. requir- i ing detailed infornation on the subject of defaults by public officers or agent under 1 each a-lImiinistration, from 17@9 to 1837. 0 This document will besolumitted to you in i u few dav . The general result, (inde- I pendnt 'of thle Post Office which is kept s'parately, and will be stated by itself,) so far as they hear upon this subject, are, i ihat the losses whicn have been, and are likely to be, sustaited, by any class of .1ents, have been-the greatest by banks, i ix.:htidog, as rerjuired in the resolution. I ;heir dep-eeinted paper received for public t ducs; tihat the next largest have been by I Jisbursiog fficers, awl the least bv cnlle- i tm;s and receiveri if the losses on luty a are inc)lm.led, they alone will be I t~ve!H those by hoh collectors atid re- e e ci . Our whole ex perience, therefbro, I fiiraishes t! z-rongest evideiice that the 1..&re- k:gi- ia 'of Couwres- is alone I w-ijng to i :Iy!re in those opetrations the htighes! degree of security and theility. Such also atppeatrs to he~'ve been she ex pierience of other tnati 'n<. F'rom th:e re suIts of' itnqtuiries tmade by the Secretaty of I Treasury int regatrd to the pr-:ctirce amton;: them, I am enabhled to state th:.t in tw'nty seven foreign Governmete, fronm whirch utndoubted informat ion hias beetn oh. tnined, the public tmoneys tir -kept in i charge of public oflicers. Thei concur-r renice of opintion itt favor of th:tt esn is I perhaps as great ats exists on any question I of iuternal adm~tinistrat ion. In the modes of' business antd official re shaints on disbursitng offices, nIo leiah I change was produ~cedl by the suspension or< specie paymienits. The report last referred to will be foutnd tto cota'in also much use- I ful information in relation to this subject. I have heretofore assienedl to Cotngress I my reasonts for believinog that the establish mtent of an Independent National Treastu ry, as contemplated by the Constittutiotn,i is necessary to thes safe acti'on ofl the Fed eral Government. The suspension of spe cie paymetnts in 1837. by the banks having the custody of the public money, shtowetd I in so alarming a degree our dependlence on i those institutions for the performance of I duties requiredl by law, that I then recomn- I mend the eptire dissolution of that con tnection. This recommendation has been subjected, as I desired it should be. to se vere scrutiny and( animated dliscutssion: and I allow myself to believe that, tnt withistandinig the natural diversities of optinion which may be anticipated on all subjects involving such important consid erations, it has secured in its favotr as gen eral a concurrence of pub'ic sentimient as could be expected on one of such mnagni tude. - Recent events hiavo also continuedi to develops newv objections to such a conl nection. Seidom is any bank, under the existing system and practice, able to meet on demand. all its liabilities fir deposties and notes in circulation. Je maintains I specie pay ments, and transaets a profitable business, only by the confidence of the public in its solvency; anid whenever this is destroyed, the detmantds of its depositors atnd note holders-pressed more rapidly than. it can make collections from its debt ors-force it to stop paynment. This lossI of confidence wvith its consequences occur-t red itn 1837, and afforded the a pology of the baniks for their suspension. Thue pub-i lic then acquiesced in the validity of the excuse; &,while thestate Legislatures didi not exact fromn them :heir forfeited charters, Congress, in accordance with the recomt mendatin of the Exeetntive, allowedl them time io pay over the public motney thevy held. althoughi conspelled to issue Tre'astiryi notes to stupply the denicietne' thuts created." It now appears 'hat there arc otther mo tives thtan a want of publhic 'ontfidlenie un dci which the banks seek tojustf them-1 selves in a refusal to meet their obligations. Scarcely were the country and govern ment relieved, in-a degree, from the diffi culties occasionsd by the general suspen sion of 1837, when a partial one, oecurrig within thirty months of the former, produ red new and serious embarrassments, though it had no palliation in such circun stances as were alleged in jusificatiin oif that which tiad ptreviously taken place. There was nothing in the condition of the 6ountry to endanger a well managed bank ing insltitutiion; commerce was deranged by no foreign war; every branch of mana facturin industry was crowned with rich rewards: and tie more than usintl abuu dance of our harvests. ;ller supplying our donestic want, had left our granaries and store honses filled with a surplus iir expur tation. It is in the midst of this thiat an irredeemable and depreciated paper cur rency is entailed upon the people by a large portion of the banks. They are ot driven to it by the exhibition of a loss of public confidence, or of a sudden pressure from their depositors and noteholders, but they excuse themselves by allegmng that the enrrent of business, and exciantge with foreign countries, which draws the pre ious metals from their vaults, would re quire, in order to meet it, a larger curiail ment of their loans to a co .parativ.lv sall portion ofthe connuniiytlan it wal ltt coavenient for themn to bear, or perhaps afe for the banks tiexact. The plea has eassed to be one of necessity. Conveni ence antid policy are now deented sutiicient to warrant these Institutions in disregard ing their solemn obligations. Such con duct is not imerely an injur% to individual creditors, but it i- a wrong to the whole community, from whose liberality they hold most valuable privileges-whose rights they vitolate, who.se Lusi.aess they rerange, and the value of whose ptruperty they render unttable and insecure. It must be evident that this new ground for bank suspension, in reference to which their action is not ony disconiected with, but wholly independent of, that of the pub lie, gives a character to their suspensions tore alarming than anv which they ex ibited before, and greatly jiereases the inpropriety of relying on the banks in the transatiots of the governmient. A large and highly respectable portion fotr banking instittumous are, it allirds re tinfeigned pleasure to state, exempted rom all blame on accnumt of this second lelitqueney. They have, to their greai rt-edit. iot only continn,-d to meet their en pagmienms, but have even repudiated the vrounds of suspentsion now resuried to. ti s only by sueh a coirse that the confi lence and goolod will of the commauniiy can It preserved, and, in ite senilel, the best mere-sts of the in .1 utious themselves pro n.'ted. New dangers to the banks arealso daily lisloled from the extension of that avstem If oxtravatgant creditof which they are the illar<. Formerly our foreigu cotmmerce vas prinetpally fhunded on ant exChanie of !ommdlities,including the precions met als, mil leaving itt its transactions but little oreian delit. Such is not now the case. Uided by the facilities allbrded by the >nks, m'ere credit has become too con nonly the basis of trade. Many of the anuks themselves, not cointent with largely stimulaiing this system amtong tlers4 vnye usurped the business, while they be :ome borrowers instead of letders, they talish their agencies abroad; they deal ar!ely in stocks anid imerchamnd]ize; they -neourage the issue of State ,euries until lie foreign inarket is glutted with them; mnd, tunisatislied with the legitimate use of heir own capital antd the exercise of* their awful privileges, the raise, by ltrge loans, dditional mteans for every variety ol slie. dation. The dlisasters atatndant on this leviation from the former course of busi less5 in this country, aire now~ sharud alike :v banks and individluals, toati extetnt of hih the-re is perh-ips no pirevious exam le in the atnnals ef our country. So long is a wiluntiness of the foreigni lender, atid suticieti export oif ouir prodlnetitins to net anyv mnecessary p)artial pasymtems,. ave' the&'jow of c dit utndistturbed, all a p wars to~ he prosp51eriUS; tint as soon as it is :hekeil by any hesitation abroad, or by an inbility to make paj mentt the-re in our iroductions, the evils oh the system aire ielosed. The paper cu rrency which night serve for domnestic purposes, to pay he debt due int l10nrope. Gobil and silver re therefore drawin, in exchange for their ttes, frott the' baniks. To's keep1 tip their tiply of coitn, these institutiouns arc a diged to call tuponi their own denitors, who my thetm principally in their own r.otes, .hih are as utnavaihable tn them as they ire to the merchants to meet the fore.ign lemnid. The calls of the banks, there ore, in such emergenciesof necessity, ex eed that demand, atnd prodtuce a corres >onding cnrt ailmnent of their accormnmoda ions anid of te currenicy, at the very mto nett when the state of trade rendlers it nost inconuvenient to be borne. The ini ensity oif this piressure on the cotmunity in tiropolrtioni to the purevioius libierality of reit atnd conu entitt expatision of the urrencv; forced sales of propeity are ade at the tiume when the means of pur :basing2 are moost redlucetd, and the worst alatities to indlividuails are only at last irrested, by ant opent violatiotn of their oh, igatiomsby the batnks, a refutsal to pay pecie for their notes, and an imoposition ipotn the commtutnityof a fluctuating and lepreciated currenlcy. These counsequtences are inherent in the >resent systm, They are not itauenced y the banks being large or small, crea ed by National or State Goverinments. I'hey are the results of the irresistible la ws >f trade and credit. it the recenit evets which have so strikingly illustramed the 'eraitn effects of these laws, we have seen ie bank oif the largest capitol ini the Union ~stalished under a National charter, and ae strengthiened, as we were authsirita ively informed by exchanting that for a tate charter, with new and.nutnstial priv lees-in a condition too, as it was, said, f entire sountdtess and great prosperity tot merely unable to resist these etets, mt the first to yieltd to thteit. Nor is it to be overlooked that thiere iists a ebain of niecessary depetnee a nung these instittiotns which obiges t hemt, 'o a !reat extent, to follow t he- course of thers, no' withstanditng its injmtsties to their wn iminediate creditor,, or injtury to the parteular commttity-vin which they ate l~a.. T'him dennc~a e .. ban, which is in proportion to the extent Of its debts for circulatiou and deposites, is not merely on others in its own vicinity, but oa all those who connect it with the cen' ire of trade. Distant banks may fail, without seriously affecting those in our principal commercial cities; but the flaiLu1re of the latter is felt ait the extremities of the Union. The suspension at New York, it 1737, was every where, with very few ex repttioans, fillowed, at son as it was known: that recently a, Philadelphia itm inelintely affected the hanks of the South and West in a similar mauner. This de pendence of onr whole banking system on the institmions in a few large cities, is not found in the laws of their organization, but in iliose of trade and excbange. The banks at that centre to whicb currency flows,and where it is received in payneot for nerchandize, hold the power of con trolling those in regions whence it comes, whie the latter posses% no mans of res training them; so ihiat the vaine of individ val property. and the probperity of trade, through the whole interier of the country. are made to depend onl tie good or bad management of the banking instil utions in the great seats of trade onl the seaboard. But the chsin of this dependence doe, not stop here. It does not terminate at Philadelphia or New York. It reachies across the ocean and ends in London, the centre of the credit system. The same laws of trade which give to the hanks in our principal cities power over the whole bianking system of the Uniitei States, sub jet the fortmer, in t heir turn. to th - mr:ey power in Great Britain. It is not dremed that the swzpension of the N. York banks in 1837, which was followed in qinck sie eession throughout thle Union, produced by an application (of that power, and it is inow' alleged in extennation of the present con iion of so large a portion of our banks lint their embarrassnets have arisen frot tie samte cause. Frotm this influence they cannot now entirely escape. for it has its origin in the credit eurrencies of the two countries, it is trCgthtaned by the current of trmde and exchange, which centres in London. and is rendered almost irresistible by the large lebts contractA there by our merciante, ilr banks, and our States. It is thtQ, that an introduction of a new hank into lhe most distant of our vitages, placeq the business of that villnee within the in iluence of the money power in England. It is hiss that every new debt which we -iantract in that country, seriously aff'eets mr currency. aind evtald-a over tie pur uits of our citizens itsi powerfil infitence. We cannot escape from this by making ew binks, great o- smtall. State or Na. rional. 'I'le same cha:ins which tind th'tse ow existitng to the centre of this system if Imper credit, most equally fieher every itmilar instittion we create. 1 is olay Ety the extent to which this system han. aet pushed of late, that we have been nade fully aware od its irresistable tenden -y to subject our own hanks an.1 cirrencv o a vast controllini power itt a foreign land, and it adds a new araument io those vhich illustrate their precariotns sitiation. Iad igcred, in the first place, by their a n mismnaagement, and agnit by the :onduct (f every instittiian which coriect hern with tie centre of tra'de in our own untry, they are yet subjteceied, be-yone all this to the ef'eet of whatever meantar-, iadicy, necessity, or caprice, mutay indue hose ,vho control the credits of Enghad to resort ta. I tean not tocommtnni-mt oap. i these ie.asureo,..present or pneqt, and tmuch less, tot discourae the proseention f fair commercial deanling het ween th wo cotitries, basel on reciprocal benetfit. utt it having now been rmade manifest Int tihe power af inflictitg these-nnd sim luar inaja rie< is, lay the resistles law o tf a a rrrency tanda credit traade. eg nal ly capt al if evtitawlint their contsequtences traiught tillthe r~atienatitons of the bankittg systemr, ad, lay that mteant. i nairectly ohtiiing. partcaarly wvhen ottr hautks a:-e used as Iae poaaitor ies oft te pubilic tto'heys, a dan-t zerans paoliical ittfluience in thte ,U. Stattes, have deettead it my aduty to' bring tha oject tat yotur noatice, and ask foar ii yoaur erious coansideLr~tat. is an argumafeur reaaircad beyotta the ex masit iota (aft tese liaets, tat showv the imprott titv af usinag our battking instituttions ats leositaries ofi thte public money?~ Cata bVe, ventutre ttat oniy t o entconttetr the risk artheir- individlual anal tmttttal mnismnanee ment, baut. at thie ame time, tta place otur oreign and domatestic ptolicy enatarclv undrlr the conttroal ofta liareigna tmoneyed interest? rto ada saa is to im puir the indaeptentdence of rur Government, as the present ciredit sys rem tas alreadyV imnptired the inadepen-t dence of our banks. It is tt snhmnit all its imprtant operatiots, whether of pentce or wartoa be conitrolled tar thwartead at first by or aownt htanks, an'! theta lay a powevr a' arad greater titan themselves. I cantnot |wing~ mtyself tot dlepict the hitmiliation to which thsis Gtoverntment attd peopale maighit le sooner oar later redneedei, if the mieans lar def..ndinag their rights are to bte mtado eedent utpon ahs li whora may hnave the mst powerfatl taf motives to impair them. Nair is it aatty ini referentce to the effect af th state of things on the indaepaendenee afour Gaavernmneni or of our hb aks. that rthe subject presents itself foar consiaderationi it is to bte viewed also in its relation' tothe reneral trade ofot country. rThe time ist not long past wvhen a deficiney af foreignt eraops was thouaht to afford a pronroale mtrket for thte surpittsof our indntatry, hut now we await with feverish anixiety the news of the English harvest, no so much from omotiv.es oaf commeundable sympathty, btut fearfutl lest its anticip-ated fatilutre should narrow the filad caf credit there. Does not bis speak vialutmes to the patriot? Can a -retes greater anziet y faar interesms dhepeni rienatont ltreigna credit titan for the genteral prosperity of our own contmary, aitd the profitable exportatiotnaof thte surplus haro iance aifotar laboar? Tecircumaastances to which I have thtus ad. rtred atppetar to me to afiford wveighaty raeasons. 'ievoped by hate events, to lie added to thtose w vhicha I haare on forater occasions aofferedi. vte suabmaittitng toa your better knowvledgze mdta adiscermttt-ntt the proprietv or seperatinag ,he utody of thme public mtonev front bank. an insuttntionts, Nor haa any thmkt ocenrred 0 lesen.t ait y opinion. tth frce of wvhtat lai ea hethaerto target!. The only grainntd oni ,vhich thaat entodiy can lie desired by the a>attks is the parofittable uase whiich they make of te money. Such ttse wotuld be regarded an maividals, as a braeacit of trust, or a crime of ...at magnitdand.Yvt.t.aY he aasnably doubted whether, first and tiat, it is not ntiand ed with more mischievous consequeices when permitted to the firier than -to the latter. The practice of permitting the public money to be need by its keepers, as here. is beli- ved to be pectilar to tins country, and to exist senircely any wl. re euse. T. pracre it lere improper ilaiences tare appettiteJ to; uinw ie cunetlaxioie are establisaled betw een the Gov ernhtttetet and viat itttnbers of' powt rliu .taet inslitutiutins: oitr moissves tin the pub-le iotId a.e brotng:.t to bear hoth on the Execn tive and Lo-gdlmive Oep~ar mssents, and selfish comlibinations Iendint t tspecial legislaation are bined. It is made the interest of banking; insti tttits and their -touk holders t.irtmglhotti the Uniion tit use thteir exer ioits for the imcrease of taxation and the arctitilation of* at sntrpiilus revenue; aid, while an excuse is aliorded, the tteans art hnrnished for those exceslive isseies which eat to extravigant tradi: g and spieculatiot, and are the fihrerunners of i vast debt abroaiad, and a suspension of the buniks at imnie. Impressed therefore, as I am. vith fite pro iriety or the funds of the Goetnitimeit heing witlid awn fritn the privitie use of either banks or individiuals. tan] the public money kept by duly appointed public agetits sald hehievimrm, as I do that s-eh also i- the -1141g tmt.:.i wihich de eission, refle:-tion, and experience have prir duced ott the public indti, I lene the subject w:t Von. It is lot all eveiis. Csslential to the interests or thle commmtty and the h-vsiness of the Govermneunt that a decision sh.ild he made. Most of the arguments that disunde us from employing bantk. inl the custody and disburs tteut o the public money apply with equal f*o.c to Iie receiit of the-ir iotes flor puble dues. The diffrence is only ins form. It one# instance the Gov.rutent is ;a creditor for its deyosites. andl in the oither for tie tiles it holds. They -ilforil the same opportutnity for using ti- puiblic moneys. and equally lead to all the evils attetdant upon it. sinc,- a batik cat, its salely extend its dist-otuts on a deposite ill its notes in tile haids of a public otlicer its on oie made in its own vaults tnt the tther hand, it would give to lte Goveriinait no ereat:er securitv, for iu case if tiailtnre. the cl im of tie iote holder would be no beater thu that of a depositor. I amn aware that the danger of inconveni ence to the pib:ic. and niretasanable pre-sure upon sound han!ks. have been orged as objec tions to re-quirinig the pa tlent ol' ite re% enna it god and Alver: 'these objections have been gradually exaggerated From tihe best eitiiat s. we may salfely fix iha amotit of spoecie in the con .try it ei'hty live million, ,f dollars, and tlhae portion of that which would Ie employed na anty one timoe in tle receipts aid disbursmentis of the Governmint. even if tlte proanosed change were mattde lot once. would not, it is now, after fuller imvestigit ion. heliev ed. exceed fiur or five milliona. Ifthe change were graduia!, several years would clanj lefore that suma woid hlie required with anno.il oil porinlities in the neaii time to alter ilte itw, shoId experience prove it to ie oppressive or inconirtvenaient. Tle lortionatsri the caiommttunaitv on whose business the change wolld immedi ately operate are comparitive:y small. nor i- it believed that it. effect would hein the least un jts. or in juriouis to them in the pavim-:nt of iutties, which constitate by ilar the :renler portion ofthe r venue, a very .urge p oplortion is derived froi foreigtt comt mlission hionse, :and aigents of foreigin mtannine-. tunrers who sell the goada consignedi to them. eierally, atainetioan sold nfler paying the dit. ties out of the avails. retmit the rest abroad im siCcie or i-s egniiaent. riat the antoutit -eI duties should. im sneh cases. he ailso retniated in specie cans hardly be in tade at matter of cots p'aint. Oinr own iiportinig nrchanis, by whon the residtie af tle dities is paid, tar not ily pecliarly iterr'ste'd inl maintaining a soil cunrrencywhich tte mt0a11 m Ii gne.tioni will especially pronote, hit are from hie .a. tuar" of ilteir dealines. best able to knaow wheni specie will bte aetrdel. ted to procure it with 'he leaslt diffien'ty or san--rifice. lResidling. a,(, 1o alinont universalb- in places where the revenne is receive.l. and wvhere the drnif tsised by Gov. ernmtent fhr its ilishiraeaie.aetsnnat colicentrate they have every ttppartriniv to obtain and use tleit ill place onseoecie. shaanidl it le for their intirest or onvenience. Of tie unmhier of theae dlrafts a-d the frieilitie< they tiny aflard ais well as ofthe rapilitv witht which thI e fi ilIhic funds are dtrawtivit tnd dli.4hnraed. ant idea may he' foiramed fromt the facet ihn', of neairlv twenty miietfs oftdotlnrs naid to calhetors ad recet vers dturing~ thet pre'sent y'ear, the nyvernge a mnnth .-ld by htimi, snhlj-et to draift dutrinig e-cch w.-e'-. has bteeni less thtan hlfl a miillioni, The eate andh safatv oif thie opaerations of thie Trenenry in keaepin~r thte pubh'ie amoneay, are pro motedar b'v thet a piention of its ownt drafis to then pub'tic dates. The objectiotn arisinug front avin! themai tao loang on-staning,~ mtighit lie otni-ieta'd, atnd theiy vet may nulird to merebh:mtt aui h-mks hohtllit'r hetmo, an equivatlent for spae c.it, and in thut way grant'~v lessoani thie amuout -ntnil'yv eqitired.' Still less icont--ience will attendi thie regntiremtetnt of spaee ini pur ctnses or pubihli-- iads Sneh phtal~ses, ex eept whlen mad~e fle speernt'ntionh, tire, int g'ener n, hntt sintgle tranearatiolns.h~nrelv rep~eatted hiv thie satme persant nnd iS is at fact, thiat for the last vear anid a hair, din which th-- tntes of sounid anoks havt" bteeni reaceivedl. iittae thant a moiety of these paymuent~s bits beetn volinn'arily mttade in s pecie. binit a lairger tnro portionm that', wentld hive hien required'mit three years uinder thte grdnationis proposed. Itis moo.-eo'er -a principal than whlich tni'e is better setlted byi --xperien-.e. th at the sulihply of thet precions moetta'swill alwnes be fotnd nide. quite to te naeqn for which they are reqitired They thtontnd in canntttries where th ereis nto other currency allowedl. In ontr twit Ntn'e. wvhere -sm-ill tnotes are exelatded uit' tandl silver mutt ply thecir phnee. Whien drivent ta, their htidintg places by~ beant sutspensions, a little' firmnress it the comnoitv soit rev'ores thent i-- ma so ft cient q tut'itv for ordhieary tpnposes. Posittree anti oth er publhic duies htave bean collected in coin. wvithtont seriotis inconveniencee, even in St:es where at depra citnted paper entrrenny~ has existedl for years antd -htis. with the aid of Tre'sntry nuotes fort ahart of the timne. wvas done withont'interruptiona dutring thta suspenei'en of li3. At the piresent mnomntn. the rececipts aid disbtursemets of thle sovernmient art' madie *in legal enrrettcy int the lanreit porttin of the Uio-tio out- 'suiggests a departure from this rule; aend if it catn now he stu cesitfiully cnrried outt, it wvill be stnrely atte aled with even less ditcnity when bitk notes are again redeemed t specie. Indeed I ennuot thtink that a serious~ ohbetion would tiny whlere h' raised 'o thie receiit aund paymnat ofgnlid atia silver in all puiblic trans atioins, were it tnot foran atpprehe'nsion that a surpus in thes Treausutry mtighrt withdrawu a large poi tion of it fromt cireuhntion. antd lock it upt unprofitbly ini Ihe puliei vaata It wimuld tt in myt oaimonut lhe difllenit to utreventt sauch an incnveientce fromn oc.-trrinut ; bt he ntheit ti stataetiws wvhichl I htave n'rendmy stubmtitted to von ini recnrd tto the .ucteanl amtnnt in ite pn'blic Tlrensary n' any onte time dumring thie pe riod embhracedl in thtemt.nnid the lit he prohnhility ofa differenat state of thue Treasury fur itt least some years to comei seemu to ren-Jer it uttnte cessary lt dwell tnponi it. Congress, tmorever. ue I haive before obhservedl, a il'. mt every year have aut o .ptortuntity 'to guard ni~nio t it. should the occturrenee otf tiny irenmtstanaces lead tis to aunprehend iejntry from this siturce. Viewing the,-nabect in mll its aspects. I cantot believe that anty peind will be tmore atnspironu thant the presenit for the ndoptiont of all meatsutres necessary to maitinit the sanictity of our ownt entgageiments ,tud to aid in seenrmg the conm munity thiat ahuindant sttpply oh' the precions ......ha which adds so much to their prosperit y, and gives such increased stability to all their dealings. In a country so commercial as ours, banks in some fiortan will probably always eXiot:, but Ithis -erves only to reider it the wnoreiicuibent on us, notwitlistanading the discouiragemense af cae past, to striye in our respective staoitimma tu Imiu. ,-te the ev il they prodnee; to take Ihon thetn as rapidly as the obligaions ol public latlU aim a car-.im1 considerutiai ol tie mnediaie nater. ests ol tih' cmmmommntimty will pet ini., tibe 1111,mbt charhactel m1'1 1mo1 oplit 1: to c.ecaC do) luo ura miy be pracicable b% prudent egislation, tInmme temptations of minterest and those opportumtlmca Ior dangermus inidulgeier, which beset miemm, on every side; and to conline thetm strct:y to the perfbrmamnmce ortheir plrummount duty, that iof aiding time operationis of tommn rce, iti.ef than1mm conasulting their own exclusive audamianige. Thaem! n id oilher smalitary rei a.s iay, a0 ms heL.eved, he :mcomiplished widhoutthe violaiior' of any ol' the great pricipl4e of ie social con pact, time observamnce of which is indisiensable to its existence, or miea lering ill anl) way it the oi-eliti and porolitable eimpjloywmnt of reui cp ital. Institutions so framed have existed amad still ex-t elsewhere, giving to commercial imer conrse all necessmry tacilities, wilthout mmfiutmmim or depreciatimg the cnrrency, or stimulat.g speculaiion. This accomph imhing their legmu maie ends, they have gained the surezt giuar amty for t:eir protecti -n and encouragenent1 iin the gmod will of the community. Amom a peoapl s" just is ours, tie same results coulu not fiil to attend a similar comirse. 'I he direct supervision f time banke belongs. fiom the na. tte ufour Government, to mime ;tates; who am thorize lhem. It is to their Legislatures that the people mmnst 1mmi.ly look lor action oin that sihject. Butas theicmdtet ui the Fed. ral Gov eriament ini time nmaiagemeit of time reveuitle has alo a powerltii, thiingl less immediate influ enmce upon tilem, i; becomes our dity to Fee that a proper direc ion ms given to it. While time keeping of the public reveime iii a separate and independent 1reasmiry, and ofclle u tineg it in gold ind silver, n ill have a salmtary ir fin. esive On time svstem of pamper credit, with whichi all baks are'connected, and thus aid those tMat .are soiuid und weli tmiged, it will, at the same time, semsib;y * lim k such as are oiher wise, by at once withholding the meais of ex trava ince ml'Oirdmed by ilim ublic lii.ds, aid restraminig them im excessive ismimt of notes. which they would be constantly called uponm to redeem. I nim awnre it has been urged t' ti.is c, n trol imay be b.-si atiii.ed and exerte.1 by ien 's of a Nat.oil Bank. The ro: stittnnonal ob. ,ections, wl ii I am well kiown to eterain wonil preveit me in anmy e-vent fromi piooa inmg or assetting to that remedy. lit. ini addi '.onm to this. I cmmot, alter past experie: cc. briig myitel t( t:ink that it c:m any longer be extensively ri garded asmriiea-ive for siclm pilr pose. The histmry of the la-e National Bank. through all its muuttatioms shows that it was nmt so Ut the coitrarv it mny. nfter a careitu consideration of the 'mnject. ise. I think. rafely stated that at evt-ry period of bmaking exce.s- it to' k the lead: that inl 1617 and '1d, inl li, inl 1l3 and ini J,31. its vast exlmanstioi;s. followel by ds:ressing coimtratc:ions 1led to thmoe ol'ie Smie institutlis. It swelleld:d maddeined tihe ;iles of tie ba:i niig sy-em, lit seldomn al laved fr sately directed themga. At a few peri ods oil was a sauta: y control exercised, but an "ager desire. oti time contrary, exhibited for profit ii t e first place: anid i1, afterwards. its measiires were severe towards 'ther istitn tiom1.. it was because ots own safety compeli d it to amtmi ihemm. It did not diffir fron ihem in principle air imi form; its nensnre- emamated frmni the same 1pirit of -.nin; it felt the same templatitn to mover-i-sime; it sufired fr.mn, and wa14 totally unnile to avert those ineviiable laws Im trade, liv hieb it was itself auffeted equaully n ithm mm: and at Ieast ton one occe.--ion. at tin early daiv, it ans sav ed only Ly exrmirinary exe, tions, from the satme lute tht artenaded the weake'st institution! it trofessed to smpervis. [i 1 ':;7. i; fanled ,-jmly with thers, in reteemi ing it- niotes, mh'Wo. the two' years llmwed hi its chartar. far that purmse, had not expi ed, a lirge aimonn of which remamin in time preseit time mitsitdinmg. Ii is true, that imavinmg so vast a capital, and stren thened by thie ise of all the revemies of tie Gov-rimment. it poseseel more power. but while it was itself. by that cir eminmtace freed fromn the conitrol which all banks reqnireits parinnoit oheet ,ndI induce imimmt wiere left mime ian .e-to nmake iihe miast 'o-- its stoc'khmoders, noat tom reentiite ilhe cenrrenm e'v of the cotnmtrv. Nor hmas it, as lfar as we mre a'ised, beeni f'ound to be greatly omlherwis elsa'whlere Tme na~tioi:al charaicter given to mime hmami.' of F'mgiatmd, unts imniot'ev'emted excessive flinctin tionas ini thmeir emnrrmtevy amnd it piroved unmablem tom keep ofl' a suispmsion oh' spie~~ pay' emits, which isted for omry a qiarter of a ceitnity. Amid whyi -homind we expect it to bie othenivism 1 A : tia'mal instittion thouigh dmrivi, e its chan' ier fraom mm ditfern'mt smmic'e thin ime .4tatme bamak" is yel cmonstiitutedi l oni mthe siaime principlecs. is enaidmneted bv meim etqually e'xpmsed to templn limon. anii liabile tam the samume disasters; with time adadlitina diadvanitamge, that its muagiumde min casioms anm extent ofi conmfusion and distressm wich'i the imismanumagemenett of smaln!er isi nm. timams couild noti he prodiuced- It ennm scarcely lie donhtm'd thamt mime r'cenmt suispenisin mf the U. Staties Biamnk of Pennmsyitnnim-of whlich time mil'eets tare not felit ini that State alonme, but over hamtf time Uinion-mnd its origini ini a nrse of' husmiens commnciaed ilist it was a niationi insiittin:m atnd there is ito good rea.emn Cor sumi posuig thait thin s'mn consa'ienence n onili nt have'followed, had it still dierived its powv rs i'rom time Genmerail Gomvenmeint. Ii is m vainm whenm'm time influencmes and iumises are the ate, to look foar a dift'ere: ce in' condnect or resits. lHv such creaiiins, we dma therefore hut ii crease th'e mass of' pia er credit aid ipnmer emnrrenmy, withiouti checkinig their ati- nidant evils amn -flue. timationsi. 'rie extenit mf power anad tihe eficiemi cy of organizaiti, n n hichm wen give, so ijir from li'einmg benieicini. are in piractice positively in.:u-' rionus. They stretgihen the chnain ofdepend ence thirouimout time Umnion, subliject all parts minre certaily to commmon disaster, amnd bindi evm'ry bnik miorm' efi etiv.inm the lrst insitance to ih'ose of ouri coimmeei'da eimis, mind, in the cnd, to a fore'ign poawer. In a wonrd. I cannot 'bimt belimve thmat with the ll umnd-rtaindinig of the operations of our banmking system, which ex tperience has prodmuced, pubilic senitimetm is not lesopposed to thme .'rmnmoni of a national bamnk for puriposn's comanuected with emirrencey nmdcom imerc'e, thamn for thomse cmimnnected with the fiscal operationis of mime G'overnmtenit. Y'et time comumm'e' atnd nurirecy of the conn-m try tire sii'erinig evils frinm the oiperittins of time State banks which cannmot and ought not tim lie overlooked. By their means, we hav'e beemn hlooiedi with a del ici; ted pamper. which it wias evidently thme design of the fiamers of' thme Conistituition mai preven-, wh'Ien they regn're Cmolngreeas to 'coin mmonev and regulate the viui nie ol' foreignm coinis," nmmdivihen they fmrbid the States "tiocoim mniey, enmit bills of m redit. imake amny thing but gold amid silver a tnder in payime'nt of debts." or "pass ay law immpairing time ob:gigtion of contracts." "If they did nti emnardi more explici'iy against time preselt state o'f thigs, it wias bieenuse thmey cotmld mot have nuticipatied diat mime fe'w banmks then existing were to swell to an extenmt which wvmon'd expmel tom so y rent it degreme time gold and silver, finr - which they haed provided, from the' channels of' cireniation amid fill thmem wvithm a enmrre'ncy that mefeats time obcts thmey hmtd in view.' The renmedy fomr this must chim'fhy rest with the Siates trom whose legi.imitiotn it has sp rung. No good I ham miighmt accrue ini a piar:icmular case froom the exercise of powers, not obviously comiferred I oni the General Governmnt. would anthorise| its imttrfercmnee, or instify a nourse that might. fi tie slightest degre, Increase, at the esponso uof the Suites., the power of the Federal au. thorities; nor do1 doubt that the States will ai ply the remtedy. 1 iha. the last few years e vents have appealed to il ithe tot, strongly to be eire, ardeti. They have is en that the Con. i.tit.otion.imonglh t..coretically adhei ed to, is sub %erted ill practice; that w hile on the matuto bouok thtere is i o legal tet der but goeld and sil. ver, no law mip;aiting the obliga:isns of con. Iracts, yr t that ill point of fart, the privileges conaerred on buithing corporations have neado thoir notesa, the currer.cy of the countlry; that the ibli aitionls imposed by these notes are vio. lated under the itni:ase o ol intereat or conveni. ence; and itat tite nunmber and power of the. persons connected with these colilouatiolso, or placed under their influence. give them a fear. il weight waen their interes-t is in opposition to the .sitit of the Constitution, and laws. To the people it is i'material whether these re suits are produced by oi en- violationis ot the: aiter, i r l.y the wrkMga of a ytae'm of vihicb the renilt is the sane. An it.flexible executiont even of' the exeo.ting statutes of tuost of the Stales would redress niany evils now undured; wo eth-etna ly sbh.w the banks the dangers of' mtismaningemnent w% hich in#pnt enour ages tset to repeat; a. d would teach all cor. p tirations the useful lesson that they are the subjects of the law and the servants of thee Peo. ple, hat is still wanting to effect these ob. ject must lie sought in additiotal leaislation; or if t!.at be itiunadequa e. in such furtherconstitu. tional graints or restrictions as may bring us back into the path from which we have so wide ly wancdered. In the wean time. it is the duty of the Gen eral Gove'ri.ment to co-operate with the States, by a wise exercise of i; coestitutional powers, and tim enircement of its existing laws. The extent to which it may do so by further enact. tnet-ts, I have already adlverted to, and the wisd, it of Clotg ress may yet enlarge them. Bult, abo% e all. it is incumbent -on us to hold. erect the perienciples (if morality, and law.con. stant. exeentiig our own contracts in accord. ance with the provisions or the Constitution, antd thus set iing as a rallying pouit by which our wh le couttry may be brought back to that safe aid honored standard. Our pieople will not lotg he insensible to the extet t of the bidens entailed upon them - y the false systein that has been operating in their eanguine. energetic. andl industrious char. acter; nor to tie means itecessary to extricate themselves fron these ntnburrassments. The weight which presses upon a large portion of tli People and tl:e Siates is ant enormoes debt, foreigi. and doie. ic, The foreign, delt of our State-e, corporaiions. and meit of business. can senreely be less than two hundred millions of dollars, requiriny more than ten millions of dol. lars. a year to pay the interest. This sim has to ie laid out if the exports of the country aid miast of reces. ity cnt ofrimports to tlhi extent, or linge -he country niore deeply in debt from vear to fear. It is easy to see that the increase 'of this f'oreign debt must augment the annual demand on she exports to, pa% th interest. andi to the ame extent diminish 'the imports and inl propirtion to the enlargement of'the foreign lebt. and the conseitent iterease of interest, timest he the deci ense of' the import trade. In lie of the comifoits which it now brings us, we might have our gigantic banking institutions, and splen-iid, but itt tany instances. profitless, rail ronds aned canals .bsorbing to a great extent in interest eupon the cepital borrowed to con. struct themi, the surl's fruitsofnationalindus ily feor .pears to cotne, and seemainpg for posterity no adegnatereturt- for the comforts which the Ia. burs oftheir hands niglitotlerwisehavesecured. it is tot by the inerense of this debt that relief is to be lought. but in its diminution. Upon this poit., there is. I am happy to say, hope be. fore us: nol so much inl the return otconfidence abroad, which will enable the States to borrow more money. as in a change of public feeling at hai, , %% hich pranipts our people to pause in. their career. sed thini k ofthe means Wf which debts are to be paid before they are contracted. If we would escape embarrassment, public and privnte. we must cease to run in debt, ex. ve t for e hjere s oif nece'issity, ergucha as will yield a certain returni. Let the'faith of ti States, corporntions and individuals, already pledge, he kept with the 'Post pinecillious re gerd. It is dice to our national charicter, as well as ta justice, this should on the part of each be a fixed pri.cip'e ofrcondnct. But it behooves c's all to be mere chary ini tledging it hereafter Ily ceasing to run in det. and apply'ing the stir. phca 'oh our crops and incomtes to tihe discharge ot existinig obligationts. bncy ing lass and selling more. am: tanagin!r all nanirs. pubhlic and pri rate. with strict economry and frugality. we shall ieee otur counitry scoii recetver from a temporary da'precsionm, arising ntot frome atuttral cand per.' muancent cau-es, buat fto thcose I have eainmer. ated, auml adlvamt e with renewved vigor in her career eef prasleri'y. I ortuniate,.v fear uas. at this momenit when, the balance of'tide is greatly agueist uas. and the diti.enihty ot neetinig it enafeucced by the disturb ed statie 01 our tnoniey aflhirs, the boecities of Pr.. ide.nce haive come to relieve us from the conisegm-anee of pmast arrors. A faithful apphi cntion aof the inatte'-ce results of the labors of die lust sessioan will acflord partial relief for thie pe esenet, andl peraevcer nce ire the same ecters. will. ina duaa season, acroeplish the rest. W'e leave had fuall experierce, in past times, of the extraerdieanry resulte '.hich can. in this respect he bcrouight abouct itt a short perinad, by whe nni. ted anda web, directed effin ts of a cocummity hika' acuri. Our surr tics profits, the energy and industey ocl our popualatiomn, and the te red ital tadvyniiatae ''bich I rov.deecce lias bestewed eaponm air counttry in its climcate, its variota ro. dcltiaons indispetnsab'e to othear hnattins. will, in duie tinee, allard caberadan: maenni to perfect the moust case fail eofthiose aabects. for which the 'tate. have beena plungiag themiselves of late in em. lhartatssnmetts anad debt withotnt inapesing on ounisetlves or our childrea, such fearfuienrdlens.. liut let it lie iandel bly ci.gra'.ed "at our minids that reliet is not to1 be fisund in expegients. :In-. de biradness catmeot be lessceted by borrowing: neore mnecy. or hy changing the forma of the de bt. The balance of trade is it t to he turred iln estr favor ha,. creatinig new demcands' upon! tus aba ozed. (Iur cit reacy cannot be jnpsrad.' by the creatineg of niew baks, or more issucest fromt theose thman cow exist. Although these: devices somaetin.es appear to giwe temcpoary. relief they almost invant iably aggravate the evil int the eend. It is etnly b,' retrenaehawelt and re feorm, by cumrtailieng pnblic andh private e-pen. dittiies,'by pay ing ouir debts, acid by reforming our banaking sysite. that we are to expect effect feel relief. security foar the faulure, aid an etndu-. rita" pcosperity. Int shaapig the institutions aual polhicy of'the Gereral Government so0as to preomoate. ace tar as it can with its limited pow. erc, the important enads, you may rely on tmy mo.-t , ordial ceo-opeaationt. Thaat there shouki hare been, in the progress of recet e"vents, doiubea in anty quartets, anad in somte a hecatede oppiosition to every change. e'nnneot suarprise us. U)e.nbes are properly at tendlant on all reforme and it is peculiarly in the neataure ofl such abuses as we are enicouncteritng. to seek to pe'rpetaate their pawee by mneans of' tsme mtfinuence thwy have beent permntted to ac quire. It is their resit, if' not their object, to gaine 'or ihe few an ascendane over the many. lhv securiang to thaemi a moniopy of the curren. ci', the mediumt through whic she miost of the wrants ot zankind are suajpied-to produce throuighouat society a chain of dependenace wihiche leads al; el. sues to look to privileged asa sociations for the mans of sl'eenlhation aicdetz travacgacaet nouriish, in pref'erenee to the tanaly virtues' that give dl'gnaty tie humtan a teere, a craving desire for luxurioui' enjoymaent anid sudedeti wealth. whtich render. those who seek them de'pendant on thoase whosupply them -to substitute for repueblicait simplicity and . eonomical habits a sickly appetite for eflani.'