Farmers' gazette, and Cheraw advertiser. (Cheraw, S.C.) 1839-1843, January 03, 1840, Page 30, Image 2
se? that must have been fatal io the peace o"
fc^^tho two countries.
I look forward anxiously to a period when
nil the transactions which have grown out
O titis condition'of our affairs, nod which
have been made tho subjects of complaint
and remonstrance by the two Governments
respectively, shall be fuWy examiner)^and
the proper satisfaction given whom it is don
from either shto.
-Nothing hatroccurred o disturb tho bar- \
tnon v of our intercourse wi'h Austria^ Belpi
urtfc-Denmarff, Franco, Nnph's lS)rtu?ul,
IVrrssn, Russia, or Sfrcedun. Tire iutcmul
state?>/(Spain has sensibly improved, and n
velt grounded hope exists that the return of
k >11 iL' ii! tA I hp l>POnl/> ra ... rmn. !
n I' IVJ4WIW ' "* %*??H * VU1J- |
^ irv theirfonner^rospiTi'V, "and enable the j
liovprnmont fo fu'fil ail i'j obligations' at !
home and abroad. Tfco Oovernment ofi
HA Portugal, I have rho sataction to state, I
^^ Vltns paid?n fuftVurttfrye^fh and lust lostal- j
|?-Vnt du?f to cmr mirzett^ for the claims em- |
\.ict d in the sel?Wj&nt *made ith it on !
HHk t third of March% 13437.
HB^Afrv hoforo you .treaties of commerce |
H^HBHg^atod with the Kings of Sardinia and
PpgH^tiv*ft3therla w(st the ratifications of which
have been 'iXohanged since the adjournment
of Congress. The liberal principles of
these tn?at?rs w?ll recommend th?*nr\ to your
approbation. That wi'h S.trlinia is thu*
tir-t treaty of commerce forme I by that
kingdom, and it will, I trust, answer the expectations
of the preset.t sovereign, by aidiug
the development ofihe resoureos of his
country, and stimulating the enterprise of
Ins peopl'*, That with the Netherlands
happily terminates a long existing subject of
dispute, and removes from our future cornrneminl
intercourse all apprehension of em
tnrrasmcnt. The K'ngof the Netherlands
h 13 a'so, in further illustration of Ins char?
tor justice, and of his desiroto remove
rvf>ry cans'? of dissatisfaction, made compension
for an American vessel enpured
in l8dt) by a French privateer, and carried j
into Cur :con, where the proceeds vve.e ap- j
propriuted to the use of the colony, then and )
for a short lime after, under the dominion ol I
Upland.
The 4<'adi of the late Sultan has produced
no alteration with our relations with Turkey.
Our newlv appointed Minister Resident
has reached Constantinople, and I
h'iv.? received assurances from the present
UuN-r ilnt the obligations of our treaty, and [
those of friendship, will be fulfilled by h rn- !
s'.lf in tho same spirit that actuated ins il- '
tu*triou* firhcr.
I regret to bo obliged to inform you thai
no convention for the settlement of the
cla'ms of our citizens upon Mexico has yet
been rat.tied by the Government of tint
country. The first convention formed for
that purpose was not presented by the
' President of M< x1co for the approbation ol
its Congress, from a belief that the King of
rrussin, the arbitrator in cast) or disagreement
in tlie joint commission to be appoint.
* cl by the United States anil Mexico, would
not consent to lake upon himself ilmi friendly
office. Although not entirely satisfied
with the Course pursued by Mexico, I f it
no hesitation in receiving the most concilia
(ory spirii tiie explanation offered, and also
cheerfully consented to a new convention,
in ofd*r lo-nrraitfli; the payments proposed
to be made to oar e'tr/.< ns, in n mano'-r
r which, wailo equally just to them, was
deemed less ovierous and inconvenient to.
v V,e
mm n^povernmen\ Relying con-|
^ Vnll)' hpttf) the intentions of that Govern- j
^ was directed to repair to J
Mexico, and diplomatic intercourse has I
. been resumed between the two countries.
The new convention has, he informs us, j
^ been recently submitted by tho President j
of that Rep Alio to its Congress, under dr. !
eumsiances which promise a speedy ratifi- [
ca'io#; iyresult which I cannot aliow my.
doubt.
I ostr ictions have been given to the com
Commissioner of iho Unite ! States under
our Convention with Tex?s, for the demarcation
of the hne which separates us from
thai R-'puhHc. Tne commissioners of bo l>
Government mot in New Orleans in An.
jiust last. *The joint commission was or-1
gao led. and adjourned 10 convene at t'esame
placeoi>tJ^e twelfth of October. Ii
?s pr? s'tmed to be now in the perfurtmn'o
of its duties.
The new Government of Texas, has
?h?.vt) jrs desire to cultivate fr en<l!y relations
wi h u*, by n prompt reparation for injuries
com plained of in lite cases of two vessels
of the United Suites.
With Central America, a convent'on has
been concluded for the renewal of its h>r
mer treaty with toe United S.ates. This
was not ratified before the departure of our
Charge d'AffUirs from that counry, and the
copy of it brought by Him was not received
before the adjournment of the Senate at the |
last session. In the mean while, the pprod j
Jimfred for the exchange of rat ficatious
having expired, I deemed it expedient, in
consequence of the death of iIkj Charge
d'AtFairs, tp s?*nd a special agent to Central
* Anacrica, to close the affairs of our ncssion
there, and to arrange with the Government,
an extension of the time for lite exchange of
ratifications.
Th?.< commission crented by the States,
jvhich formerly composed the Republic of
Colombia, for adjusting the claims against
that Governmen', has, by a very unexpected
construction of the treaty under wh.cli it 1
acts, decided that no provision wus nnJc
lot those claims of Citizens of the United '
S ates, which arose from captures by Co. 1
lombian privateers, and w.ro adjudged 1
against the claimants in the judicial tribu.
nals. This decision will compel the United
States to apply to the several Governments !
formerly united, for redress. With all these J
?New Gmnada, Venezuela, and Ecuador, I
n perfectly good understanding exists. Our
treaty with Venezuela, is faithfully carried 1
into execution, and.that country, in the enjoy. I
ment of tranquility, is gradually advancing in 1
prosperity, under the guidance of its present
<li.stingui-.iied President, General Pacz.?
^tfttkj^^cuator, a liberal commercial coven.
been concluded, which will
Senate aft early
p?EB??pesM?g?ftaHM?kmw i
4L.
With the great American Empire of Brftz
i our relations continue unchanged, ns
does our friendly intercourse with t; e other
Governments of South America?-the Argentine
Republic, and hie R publics of
Uruguay, Chili, Peru rtfod Bolivia. "Tne
dlssoJu'ion of tb^Peru-Bolivian Confederation
may occussfoh som t&mponry iuron
vrnience to our c tizens in that quarter, but
the-obligations on*the new Goveinrnents
wtiich have arisen out of that Conlederut.ou
to observe its treaty sipulations, will no
doubt be soon understood, and it is pre.
suin- d that no indisposition will exist to
fulfil those which it contracted with ihe United
Suites.
Tj?e financial operations of the Government
during the present year have, I am
happy to say, been very successful. " T- e
difficulties under which the Treasury Departnient
has labored from knotvn defects
in the existing laws relative to the safe
k?*epfng of the public moneys,, aggravated
by the suspension of specie payments by
several ol the hanks ho ding public deposits,
or indebted to public officers for notes
received in payment of public dues, have
| been surmounted :o a very gratifying ex.
tent. Tae f rge curr?*nt expenditures have
been punctually met, and the .faith of the
Government in all its pecuniary co ccrus
has been S Tupuously maintained. ,
The nineteen ?n:ll oris of Treasury notes
authorized by, the act ol Congress of 1837,
and Hie modifications thereof, with a view
to the indulgence of men hants on their du
~~ "" O ""
ty bonds, and of the deposite banks in the
payment of public mowys held by them,
havii been so punctually redeemed us to
leave loss li in the original ten millions outstanding
a: any one time, and the wnole
amount unredeemed now falls short of throe
millions. Of these the chief portion is not
due till next year, and the whole would
have been already extinguished could the
Treasury have realized the payments due
to it from the banks. If those due from
them next year shall be punctually made,
and if Congress shall keep the appropriations
within the estimates, there is every
reason to believe that all the outstanding
Treasury notes can be redeemed, and the
ordinary expenses defrayed, without impossing
on the people any additional burden,
eitherol lonis, or increased taxes.
To avoi' this, and to keep the cxpendi-,
tures within roosonahie bounds, is a duty, socon
J only in importance to the preservation of
our nation*! character, and the protection
ufour citizens in their civil and pol tic.al
rights. The creation, ui time of p- aee, of "
debt likely 10 become permanent, is an evl
f ?r which there is no equivalent. The
rapidity will which many of th : States are
apparently approaching to this conditi o, ad
monishes us of our own du ie.s, in ? manner
100 impress ve to be d sr -garb d, One, not
the least important, is 10 keep the Federal
Governm'-nt always in a coudi ion to dis
charge, w til case and vigor, its highest
functions, should their exercise be required
f?y any sudden conjuncture of public affurs
?a condition to which wc are always exposed,
and which may occur when it is
iiuJisnensablo that i s fi.i inees shoul 1 b i
untrammelled, mid its resources, as far a*
practicable, unincumbered. No circum.
stance could present greater obstacles to
the accomplishment of these vitally important
objects, than the creation of an onerous
national debt. Our own exp-ripnee, ami
also tint of other nations, have demonstri
ted ibe unavoidable au<J fearful rapidity wit >
which a public debt is increased, when the
Government has surrendered isolf'o the
ruinous practice of supplying its supposed
necessities by n 4w loans. The struggle,
therefore, on our part, to b" successful,
must be made at tie* t r tsb.hol J. To m ike
our odor s effective, severe economy is necessary.
This is the surest provi-uon for
the naionai wolfare ; and it is, at the same
litne, the best preservative of lite principles
it which our insti'utions rest. Smpieity
and economy in the affairs State have
i.ever failed to chasten and invigorate Rc
publican principles, while these have been
as surely subverto J by national prrdigal ty,
under whatever specious pretext it may have
been in reduced or foster* d.
'? > : i? ?i^?.
i IIC5H V'Wll^iU^raitim^ > I#?i HJ.-M uji'fii
i p- opl'J who lutve never been inn tentive to
the effect oc fieii* policy upon the institutions
liiey have created tor themselves; but
at the present moment file'r force is augmented
by lite necessity whic h a d 'cr asi
ig revenue must impose. The check lately
g ven to importations of articles subject
to duties, I he derangements in the opera ions
of internal trade, and especially tho re luc
tion gndua ly taking place m our tuiiffol
duti s. all tend materially to lessen our receipts;
indtcd i is probable the diminution
resulting from the last cause alone, will not
fall short of five? millions of dollars in the
year 1842, as the final reduction of'nll duties
to t wenty per cent, then takes effect. Tue
whole revenue then accruing from the cuv
.oms, and from the sales of public lands, it
not more, will undoubedly be wanted to
defray the necessary expenses of the Government
under the most prudent administration
of i s atFuirs. These are circumstances
(!%.?? imnruo hf? nf rM'irl rpnnomv
ni l. w r. -- ?
and require its prompt and constant ex- rcise.
With the Legislature rest ;lie power
and duty of so adjusting the public exnendi
ure as to promo e this end. B> tho pro.
visions of the Constitution, it is only in
consequence ofappropia ions made by |aw,
li.it money can be drawn from tho T eas.,
ury; no instancu Ins occurred since tlio establishment
of the Government in which the
Executive, though n component part of
the Legisla ive power, has in'erpos.'d an oh.
jection to an appropriation biil on the sole
ground of its extravagance. His duty in
this respect has been considered fulfilled bv <
requesting such appropriations only as the
public service may be reason .bly expect'-d i
;o require. In the prcasant earnest direc. <
ion of he public mtnd towards his subject, i
ioth the Execu ive and the Legislature have |
widence ofthe strict responsibility to which i
.hey will bo held ; and while I am conscous t
5f my own anxious efforts to perform with i
fidelity this portion of my public functions, (
it is a satisfaction to me to be able to count
on a cordial Co-operation from you.
At the time I entered upon my present
duties, our ordinary disburden) Mits-?without
uiclu lino 11ioso on accoon. of t ie public
debt, the pos: office, atnl the trus funds in
charge of thu Governtneni?hid hon
largely ncreaged by appropr a ions tor the
removal of iii> Indians, for repelling ludi m
hostilities^ and for other less organ* expenses
which grew ou' of an overflow i.ig Treasury
. In lependent of the redemption of
the public debt and trusts, the gro.saexpnditures
of seventeen and eighteen millions in
1834 and 1835 had, by ti?ese cius-s, swell*
od to twenty nine millions in 1836 ; and the
appropria ions for 1837. ma le previously io
the4thof March, cuusedlhe expenditure to
rise to the very large amount of thirty-three [
millions. We were enablijd during the
year 1838, notwithstanding the c-?i):mu *il< e
of our Indian embarrassments, somewhat
o reduce this amount { nnd that for th
present year, 1839. will not in all probability
exceed twenty-si millions?or s:x
millions less ilun it *as last year. W.tUa
determ nation so far as dep nds on inn to
cont nue this reduction. I have d< rented the
estimates of 1840 to be subjected to the severest
scrumy, and to be limited to the ah
solute requirements of the ptihli service.
'I Imu will tip follini !? ?< Si.ill the f'XDCII'Ji*
tur?'S of 1839 by over five millions of do.
lurs.
The precautionary measures wliicli will
be recommended by the Secretary of the
Treasury, to protect faithfully ill" public
credit under the fluctua'ions ??nd eoutingeuc
p.h to which our reccpts and expenditures
are exposed, and espccidly m a eommer.
cial crisis like die present, uro commended
to your early detention.
On a foimer ocasion your attention
was invited to various considerations >n sup
port of a pre-ernp'ioii law in behalf of the
settlers on the publ e I rids ; and also of a
I iw graduating :h prices for su? h lauds as
had long been in the market unsold, in con-^
S' q'inie? of jh.'ir inferior qual'ty. The
execution of die aci which was passed on
the first subject Iris been at ended well the
liappi st consequences, in quieting till s. and
& fining improvements to the industrious ;
und it bag also, to a very graii'ying ex'en',
been exempt from the frauds which were
practised under previous pre-emption laws.
It has, at the s one time, as was an'icipa-|
ted, contribute I liberally during the present
year to lie receipts of the Tp'asuiy.
The passage of a Gradu idon Law, with
the Guards before recommended, would
als ). I am o -rsuaded. add considerably to
tlif revenue for several years, anil prove in
other resjiec.s jus' nod beneficial.
Your early consideration of the subject,
is therefore, once more earnestly request,
ed.
Tae present condition of the defences of
our principal seaports and navy yards, as
r* pf 'S Mit d by the accompanying report of
the Secretary of War, calls for the early
and serious a tention of Congress; and, as
connecting itself intimately writ tuis subject,
Icmnot recointn n J too s rongly to your|
consideration, die pi in submitted bv tnat |
offi *er, f.?r the organization of the iniiiiia of
the United States
In conformity widithe expressed wishes
o Co; gr ss, an attempt was ni i le til Mr
8, ring 10 terminate the Florida W r by ne*
gotia ion. It is to he regretted that tucs'* tiu
rn.?ie mtontions slioul I h ive been frustrated,
and lint the eiFort to bring these un
happy difficulties to a salisfac ory conclusion
should have fa led* But, aferenering
into solemn engagements with the Com
in in ling General, d? Indians, w.ihou: any
provo-'u ion, recommenced their acts of
treachery and muider. Tue renewal ol
tiostilities in that Territory, renders it necessary
that I sh ?u!d reccommend to your
fiVorahle consider.il on. t ie tdan vvnich will
'-e submit cd to vhi bv tin Seroary c?f
War, in order to rumblet nit department io |
con'luet f!|t?rn to a successful iss e.
II iving haJ in) opportunity of personally
inspecting a portion of tne troops during
the l ist summer, it gives me pleasure 'o bear
tesioiony to I'm su-'coss of tin; < flbrt to
improve their discipline, by keeping tlx rn
tog ih' r in as I r.'e bodies as the nature of
our service will permit. I recommend,
tln-r fori;, tint commodious and permanent
barracks be constructed at tlie Severn1 poets
designahd by die Secretary of ?Var.?
Notwithstanding the high s'ato of their di5?
cipline and excellent police, the "vils resulting
to the service,' from the defi.ueriey of
company offieers, were v? rv apparent, and
I recommend tlmf the start*ollicers he permanently
separated fro n lit'* li c.
The navy has been usefully and honorably
employed in protecting the lights and
property of our citiz ns, wh?T< vcr the condition
of affairs seemed to require its presence.
Wall the eveeri'inn r?f /inn iik num. where !
an ou rig , accompanied l?v murder, was
committed on a vessel of the United States
while engaged in a lawful commerce, nothing
is known to liuve occurred to impede
or molest the enterprise of our citizens ?n
hat element where i? is so signally display.
' d. On learning this daring act of piracy.
Commodore lined proceeded immediaely 'o
ihe spot, and receiving no satisfaction, cither
in ttie surrender of the murdt rors or he
restoration of t ie plundered property, inflicted
severe and merited chastisement on
the barhanans.
It will he seen hy the report of the Secretary
of'hit N ivy respecting the disposition
of our snips of war, that it has bf?en deemed
necessary to sia'ion a competent force on i
the coast of Africa, to prevent a fmudu'ent
use of our fl ig b\ foreigners.
Recent cxo- rience has shown that the
provisions in our existing laws \vhi?*li relate
o the sale and transfer of American ves.
sols wutlo abroad, are extremely d fective.
Advantage has been taken of these defects
to give to v<-sse:s wholly belonging to foreigners,
and navigating the oi ?-ati. an appa.
rent American ownership, i liis character
ins been so well stimulated ?,s lo aflbrd
liem compara ive security in prosecuting
hu slave trade, a traffic ermdiatieally delounc'ed
in our statutes, regarded with a b
effectual suppression is no where more
sincereiy desired than in the Uui'ed States.
Tnese cir dmstances make it prop- r to vecomniend
to your early au? n ion a careful
r vision of these laws, so dial, wituout im
petting the freedom and facilities of our
navigation, or impairing an important
branch of our industry connected aitb ii,
the in egrity anil honor of our fl?g inny b
careluily prcs rved. lufoimotion derived
from our Consul at Havana, showing ill
necessity of this, was communicated to a
committee of lac Sen ue near the close of
the last session, bu. too late, as it appeared,
to be acted upon. It will be brought to
your notice bv the proper department, wi h
additional communications from other sour*
j ces.
The latest accounts from the Exploring
Expedition reprs'-ni it as proceeding successfully
in i ii objects, and promising resul s
no less useful to trade and navigation ih in
to science.
The extent of post roads covered by mail
s- rvice on the firs; July last, was about
j 133 991 mil s, and tlie rale of annual .runs*
portation upon them 34.496.878 miles.?
Th?- numh'T of post offices on that d:iy
was 12 760, and on the thirtieth ultimo,
13,028.
J The revenue of the Pos* Office D*partI
moul for the year en ting wiili the 30lh ol
June last, was ?4 476,639, exnibi ing an
ncrense over the proceeding year o!
$241,560. Tee engagmnents and I?mI?i1 itie.s
of tin? Department, lor tiie same period,
are ?4.024,110.
Tt??* excess of liabilities over the revenue
for the last two years, has been met oir ol
the surplus which had previously accumulated,
The cash oti hand on the 30th ultimo,
was abou $206 701 05, and the current
income ol the Department varies vry little
from the rite of current expend',ures.?
Most of the service suspended last year has
been restored, and most of the new rou es
esiab.ishi-d by the act of 7ih July, 183"*,
have be. n set in operation at an annual cost
of $136 063. Notwiths anding l?;e pecuniary
difficulties of the country, the reve.
nue of the Department appears to be inereasing--and
unless it shall he seriously checked
by the recent suspension of payment by
so mmy of die bunks, it will be able no'
o.ily to maintain the present mad service,
but in a short time to extend it. It is gratifying
to witness the promp'itudeand ft lohty
with which tin; agents of this Department in
general perforin their duties.
Some diffi uil n s hav" arisen in relation
to contracts f >r the transportation of the
mails hy r?il road and steumlioat companies.
It appears th>t the max mum t)l
compensation provided hy Congress for the
transpor at ion of the mails upon railroads is
not sufficient to induce some of the eompani's
to convey them at such hours as are
require t for the accommodation of the publie.
It i one orthe most important duties
' of tiie General Government to provide and
maintain for the use of the people of the
States the best practicable mail establ'shwilt.
To :u rive ut that ?*nd, it is uidispcnsablc.lhnt
the Post Offi e Department stioll
tu? ?.nuM,'d I/, mtiirnl the hours at which ti e
mads shall b<' carried over railroads, as it
now /Jot's over all other roads. Santild
serious inconveniences arise from the in
.*id"t|ii:ifiy oi tlx1 compensaion now provide
1 by law, or IVom unr"ns<>uable demands
by any oi the railroad computies, the subject
is of sorb general importance ns to
re/jUTo the prompt attention ot' Congress.
In relai on to steamboat lines, th most
efficient remedy is ohvioos, and lias been
sugg"s ed bv the Postmaster Genera'.?
Tim War and Navy Departments already
employ sen in boa is in their service* and
al.imugh it is by nb in eins desirable tnat
the Gov. merit should undertake the trans
porntion ot p isseng-rs or tr?'ighi as a business,
there can be no reasonable objection
to pinning bouts, temporardy, whenever it
may be necessary *o put down attempts ;it
jcxtoil'on, to be iliscon mueJ as soon us
reason ihie contracts can be obtained.
Tim suggestions of (lie Postmash-r General
relative to the inadequacy of lb" legal
allowance ;o wnni ss< s in cases of pros?cuti
us for mail deprednt ons, merit your s"
rious consideration. The safety of tr.e
mails requires that such prosecu ions shall
ho efficient, and justice to the cit2 m vvhosi
time is required to be given to the public,
demands not only that bis expenses, shall
he paid, but that he shall receive a reasonable
compensation.
Tim Rcpors Irom the War. N ?vy nnd
Post Office Departments will accompany
tins communication, and one fiom the
Treasury Department will be presented tCongress
in a few days.
For various details in respect to the
mat? rs in charge of these Departinen s, I
woul 1 refer you to those important documeuts,
satisfied that you will fiuJ in mem
malty-valuable suggestions, which w.ll lafound
well deserving the attention of tlm
L 'g slature.
1 From a report made in December of laM
wear tiv tiw So rotary ot Slate, to the
" "J ? - - -J
Senate, showing tlie trial docket of each ol
tii*? Circuit Cour s, and tlie number of mile>
each judge has to travel in the performatfee
of his duties, a great in> quality appears in
the amount oflahor assigned to each judge.
The number of terms to he held in each or
he courts composing the ninth cireu t, the
distances between the places at which they
sit, and from thence to the seat of Govern
merit, are represented to be such as to render
it--impossible for tlie Judge of that circuit to
perform, in a m inner correspond tig with
the public exigencies, his term and circuit
dudes. A revis on, 'lierefore, of the ptegeni
arrangement of tiic circuits swing to be
culled for, and is recommended to your notice.
I think it proper to call your at'ention 'o
the power assumed by Terri'orial L''gisla.
lures o authorize the issue of bonds by
corporate companies on tiie guarantee of
the Territory. Congress pass d a law in
183G, providing that no act of a Territorial
Legislature incorporating bank*should have
the forre of law until approved by Congress,
but acts of a very exceptionable character
Florida, wore suffered to remain in force, s
by virtue of whic;> bonds may e issued to s
a very large nmount by those ins itu'ions, I
uj on the faith of he lerri'ory. A resolution i
nteuding to be a joint one passed the i
S?*nti e at the same session, expressing the ?
sense of Congress that the laws in ques ion s
ought not to be permitted ;o remain in lorce >
unl'-ss amended in many materi d respects,
but it failed in the House of R 'jirt'senta .ves \
f r want of lime, and the desired amend f
ments have no: been made. The interests ?
involved are of great importance, and tbe i
subject des"rvcs your eaily and careful i
i u't' n'ion. |
Tne continu-d agiution of tlie question i
rela've to the best mode of keeping and i
disbursing the public money, still injurious- I
ly uffic s the business ol the country.?
Fne suspension of specie pay men's in 1837, 1
rendered the use of deposte banks, as
prescribed by the act of 1836, a soune
rather of embarrassment than aid, and of
necessity placed the custody of most of the
public money afterwards co lected in charge
of the public officers* The new securities
for its safety, rhich this required, were u
principal cause of my convening an extra
, session of Congress ; but in consequence ,
jof u disagreement between the two Houses,
neither then, nor ut any subsequent pe iocf,
Ims there heen any legislation on the sub.. "
i ject. The effort made at the last session
1 mohlain lbr? niilh/?rilu r>rr!iinirrps>5 to nnnisll
J ~?*r- r?-- ? ?
th * use of public money for priv;it<? purpo,
ses as a crime a measure attended under
other Governments with signal advantage,
wag also unsuccessful, from diversities of
opinion in that body, notwithstanding the
anxiety doubtless felt by it to afford every
. practicable security. The result of this is
still to leave the custody of the public, money
without those sufe.gu irds which h ive been
( for several years earnestly d-sired by the
? Ex cutivo ; and as the remedy is only to
1 tie found in the action of the Legislature, it
. iinpog g on me the duty of again submitting
10 )outiu.? propriety of passing a law, providing
for the safe keeping of the- public
moneys, and especially to ask that i's use
for private purposes toy any officers entrust,
ed with it, maybe declared to be n felony,
punishable with penalties proportioned to
o the magnitude of 'he offence.
? These circumstances, added to known
defects in the existing laws, and unusual
derangement in the general operations of
1 trade, have, during the las' three years,
much increased the difficulties attcn nnt
?>n lie collection, keeping, and disbursem
nt of th" revenue, and calied forth corresponding
exertions from those having
hem in charg-, Happily these havp been
successful beyoud exp- c at on. Vast sums,,
tiave been collected and" disbursed by th"
several Depar ments with unexpected
cheapness nnd ease; transfers have been
readily made to every part of the Union,
nowever distant; and defulca'ions liave
h en far l"ss than rnig11 have b en antici
pa ted, from the absence of adequate legal
restrains. Since the officers of the 'IVasu y
and Pos Office Dopirtmen s were charged
with the cus'ody of mos of ilio ptibli
monoyes received bv them, there It >ve been
collected sixty-six mill ons of dollars, and,
excluding the case of the Ire collector at
N"W York, the aggregate nmount of losses
sustained in tho collection cannot, it is
believed, exceed six'y thousand dollars.?
The defalcation of the late collector at h<t
1 city, of the extent and circumstincs of
which Congress Iitis bo'-n 'u!ly informed, ran
through all the modes of keeping the public
money thai have been hitherto in use, <fc was
distinguished by an aggnva ed dis-egard of
duty, hat broke through the resraints of
v *ry system, and cannot, therefore, he use
filly referred to as a test ol" t ie. rompnra..
five safety of either. Additional information
wdl also be furnished by the repor, of the
Secretary of the Treasury, in reply to u
call made upon that officer by the Hons"
of Representatives a. the last session, requiring
detailed information on the subject of
defaults by public "officers or agon's under
each Administration, from 17*9 to 1837.
This document will be submitted to you in
n feiv days. Tl?e general results, (independent
of the Post Office, w iirh is kept ??p i1
lately. and will be s'ated by its-If,) so far as
Ihcy bear upon this subject, ore, that the
' losses which have been, and are likely to
i he, sustained, by nny class of agents, have
I been ?the greatest by banks?irHud ng, as
required in the resolui:o:t, their depreciated
paper received for public du s ; that the
' next largest have been by disbursing officers,
and the least by coll ctors and receivers.
?< .. i - - - - .1 u
II 1110 loss S Oil uu y U HI'IS mi; iiiv nivir.il,
they alono will bo 'hr< efold those by both
collcciors and recmvi rs. Our wholo experience,
therefore furnishes -beslroajfesi evidence
that th? desirhd legion'ion of Congress
is alone wanting ?o insure in (hose operations
tho highest degree of sncurty and
facility. Such also appears to bavo b en
die experience of other nations. From die
results of inquiries made by the Secretary
of the Treasury in regard to the practice
among them, I am enabled to state that in
weiry-two out of twenty-seven foreign
Governments from which undoubted information
has been obtained, the public moneys
re kept in charge of public officers. This
concurrence of opinion in favor o( thatsys.. 1
tern is perhaps as great as exisis on any
question of internal adminislrut'on.
In the modes of business and official re- 1
sirain s on disbursing officers no le. ol '
change was produced by the suspension of I
specie pa\ ments The report last referred <
fo will he found to contain also much useful i
information in relation to this subj -ct. 1
I have heretofore assigned to Congress i
rny reasons for believing that die es ablishi
i 1 VT .. I T* ,
mcnt oi an in?'?*pcnu< ni i^iui ojiui i rcusun, i
as contemplated by the Constitution, is tie- 1
cessary in the safe act on of ili<? Federal 1
Government. The suspension of specie I
payments in 1837, by the banks haying the
custody of the. public money, allowed in so 1
alarming a degree cur dependence on those I
.r.stitutions for the performance of duties <
required by law, that I then recommended i
lie entire dissolution of that connection i
<? '
Th:s recommendation has been subjected,
as I desired it should be, to severe scrutmy 1
ind animated discussion ; and 1 allow myit
lfto believe th.it, notwithstanding the naural
diversities of opinion which may.fe
mticipated on all subjects involving such
mpoitant considerations, it has secured in
ts favor us general concurrence of public
lentiment as could be expected on one of
iucli magni udc.
Recent events have also continued to dc/elopenow
objections to such a connection.
Seldom is any bank, under the existing
*ystem and practice,abfi^to meet, on demand,
all i's liabilities for depositee end
antes in circulation. It maintains specie
payments, and transacts a profitable business,
only by the confidence of the public
in its solvency ; and whenever this is destroyed,
the demands ofits depositors and
no'eholders?pressed more rapidly than it
can make collectors from its deStors?force
it to slop payment. This loss of confidence
with its consequences occured in 183*7, and
afforded the apology of the banks for their
suspension. The public then acqiesccflm the
validity of the excuse; and, while the State
Legislatures did not exact from them their
forfeited charters, Congress, in accordance
wi h the recommendation of the Executive,
allowed them lime to pay over the. public
money they hel.J, althhough compelled to
issue,Treasury notes to supply the deficieney
thus created.
> it now appears that thero arc other motives
than a want of public confidence under which
the? banks seek to justify themselves in
a refusal to meet their obligations. Scarcely
were the country nnd Government relieved,
in a degree, from the difficulties occasioned
by the general suspension of 1837, when a
partial one, ocruring within thirty ittonths of
the former, produced new and serious emharrussments,
though it had no palliation
sue!) circumsiances as were alleged in justification
of tint which had previously taken
place. Tnere was nothing in the condition
of the country to endanger a well managed
banking ins'.itut on ; commerce was deranged
by no foreign war ; every branch of
manufacturing industry was crowned wiili
rich rewards ; and the more than usual ab.
undairo of our harvests, after supplying our
Jonvstic wnnts. had left our granaries and
sore.bouses fiijed with asurplusfor cxpormtion.
It is in the midst of this, that an
irredeemable und depreciated paper currency
is en ailed upon the people by a large
portion of die banks* They ure not driven
toil by the exhibition of a loss of public
confidence, or of a sudden pressure from
their depositors-or note holders, but they
excuse themselves by alleging thai the current
of business and exchange with foreign
countries, which draws the precions metals
from their vaults, would require, in order
to nv ot i>, n larger curtailment of their
loans to a comparatively finall portion of
the community, than it will bo convenient
for them to hear, or perhaps safe for the
banks to exact. The plea lias ceased to be
one of necessity. Convenience and policy
are now deemed sufficient to warrant these
ms'itutio. s in disregarding their solemn oblig
uions. Such conduct is not merely an
injury to individual creditors, but it is a
wrong to the whole community, from whose
lib rainy they hold most valuable ptiyilcgcs
?whose rigliis h< y violaio, whose business
lb*3)' d- range, and the value of whose propnet
tr (.*> , ...M I ^ r.tkin nnrl I ?
7i ij tiicjjr n ii'i?;r uiioin^iv HUM 'u^.uir, %%,
(T)ust l>e evident that this new ground fcf
b ulk suspensions, in reference to which their
action is not only disconnected with, but
wholly independent of, that of the public,
gives a character to their suspensions more
a'nrming than any which they exhibited beforivnd
greatly increases the impropriety of
r lying on the banks in the transactions of
tue Government.
A largo und highly respectable portion of
our banking institHtions lire, it affords mo
unf? igned pleasure to state, exempted from
all blame on account of this second delin--^ ^
quency. They have, to th? ir groat credit, not
only continued to meet their engagements,
but have even repudiated the grounds of
suspension now reported to. It is only by
sit dt a course thai the confidence and good *
will of he community can be preserved,
and. in the sequel, die best interests of tho
ins'itutions themselves promoted.
New dangers to the banks are also daily
disclosed from the extension of that system
of extravagant credit of which they are the
m lrt ro
|/ 11??i o* X villi' I j UUI waipii ^VUllllCl V.U
was principally founded on an exchange of
commodities, including the precious metals,
and leaving in its transactions,hut little lor.
<ign d? hf. Syli is not now the case. At.
ded by the facilities afforded by die banks,
mere credit has become too commonly the
basis of radc. Many of the banks litemselves,
not content with largely simulating
tins system among others, have unsurped
the business, while they impair the stability
o: the mercantile community ; they hnve become
borrowers instead of lenders, they establish
their .agencies abroad ; they deal
largely in stocks and merchandise ; they
encourage the issue of State securities until
the foreign market is glutted with them ;
I '.L *1 I .! 1. l>
mm, iinsaiisucu wun me inguinale use Of
their own capital and the exercise of their
lawful privileges, they raise, by large loans,
a Iditional means for every variety of spec,
ulution. The disasters attendant on this
deviation from the former course of business
in tins country, ore now shared alike by
banks and individuals, to an extent of which
th^re is prhaps no previous example in the
annals of our country. So long as a willingness
of the foreign lender, and a suffic;ent
export of our productions to meet any
nec ssaiy partial payments, leave the flow
of credit undisturbed, all appears to be pros.
,,erous ; hut as soon as it is checked by any
hesitation abroad, or by an inability to make
payment there in our productions, the evils j
of the system are disclosed. The paper
currency which mi?ht serve for domestic
purposes, is useless to pay the debt due in
Europe. Gold and silver are therefore
drawn in, for their notes, from tho
bunks. To keep up their supply of
coin, these nsiitutions are obliged to coll
upon their own debtors, who pay them
principally in their own notes, whieh sre ns
unavailable to them es they ore to the mer. j
charus to meet the] foreign demand. The I