The Camden journal. [volume] (Camden, S.C.) 1836-1851, December 17, 1836, Image 2
. limit* of a juat economy. But if the necessity
of levying the taxes, be taken
from those \vh<> ruukc the appropriations,
ami thrown upon a more distant and less
power to approach the people by an in*
direct and stealthy taxation, there is reason
to fear that prodigality will soon supersede
these characteristics which have
"itftns far made us look with so much pride
-niiil confidence to the Slate Governments,
'as the main stay of our Union ami liber'lies,.
The State Legislatures, instead ofj
tn restrict their Slate cipcndi- i
tues lu the smallest possible sum, will
claim credit far their profuiion, andhar-l
rata the General Government for increased
^ sup))lies. Practically, there would soon j
be but one taxing power, and that vested !
in a body of men lar removed from the
people* in which the farming and mechanic
interests would scarcely be represented.
The States would gradually lo?c
their purity as well as their independence;
tuey would nut dare to murmur at the
proceedings of the General Government,
lest they should lose their supplies; all
would be merged in a practical consolidation,
cemented by wide-spread corruption,
which could only be eradicated by
one of those bloody revolutions which
occasionally overthrow the despotic systems
of the old world.
In a.'l the other aspect* in which 1 have been
* " ' * ?? I. nf
00;c lo IOO* ll uu: cum w ?wv<> ?
distribution upon lhe best interests of the country,
1 can ace nothing to compensate for the disadvantages
to which 1 hare adverted. If wo consider
the protcctire duties, which are. in a great degree, 1
the source o! the surplus rerrnue, beneficial to one
sretion of the Union, and prejudicial to another,
there is no correctiTc for the eril in such a plan of
distribution. On the contrary, there >a reason *o i
fear that all the complaint* which have sprang from
this cause would be aggravated Ercry one must
be sensible that a distribution of the surplus most:
beget a disposition to cherish the mea. a which
create it; and any system, therefore into which it:
enters, must hare a powerful tendency to increase, j
rather than diminish the Ui iff. If it were even acL !
mrted tba* the advantages oi such a system could :
be made equal to all the sections of the Union, the
reasons already so urgently calling for s redaction
of the revenue; would, nevertheless, Jose none oi j
their force; for it will always be improbable that an '
intelligent and virtuous community can consent lo
raise a surplus for the mere purpose of dividing it.
diminished as it moat, inevitably be by the ex-;
peases of the various machinery necessary to I lie ;
process.
The safest and simplest mode of oh rutin gall the j
diCcnities which hare been mentioned, is to col- j
lect only revenue enough to meet the wants of the
Government, and let the people keep the balance of'
the property in their own hands, to be used tor their
own profit. Each State will then support its own
*"* ?? mr A it a due share toward*
uuirniun uv, ?
the rapport of the General Gorcrsarnl Thrrr
wodM be oo surplus to era tap sod lessen the resources
*>f individual wealth and enterprise, and 1
tha banks would be left to their ordinary weans, j
Whatorvr agitations sad fluctuations might snse >
frocn our unfortunate paper system, tbev could ne- j
set bo sttributrd. justly or unjustly, to the action j
of the Federal Government. There would be some !
guaranty that the spirit of wild speculation, which ;
seeks to convert the surplus revenue into banking
capital, would be effectually checked, and that the
scenes of demoralization, which arc now so pre- ,
vs*>*Rt through the land, would disappear.
Without desiring to eoUreal that the e a per irnce '
and observation of the last two years, have ope j
rated a partial change m ray views upon this in- j
terrsliajj subjeet, it is nevertheless regretted that
lite suggestions made by me in my annual iiies <
sajprsn? !{??? and IrCW, nave been greatly mtsun*
dcrstood. At that time, the greet struggle was;
begun against that latiludinamu construction of j
>? vtirk authorizes the unliRUlrd i
appropriation of the rrreaar* of the Union w in- j
tcrnal improvements trithir. the States, trading U>!
iasctt in the hands, sad p!tr? under cootwl, ot 1
tiro General Government, ail tiro principal eusda j
and canals of (he country ,ia violation of Slate rights, >
and indenization of State author.tv. At the same j
time, lhi> condition ct the manufacturing interest
arw such as to create an apprehension that the du- j
liea on tmpoiU could not, without eairnuve nv?- :
rhiel, he reduced in season In prerml the cccumu- j
Ution ot a considerable surplus after lite payment '
of the national debt. In rtew of the dangers of!
roch a surplus, and in preterrnca to it* application )
(<> internal improvements. in derogation of Lhe
rights and poirera of the States, (lie suggestion of'
an amendment of the constitution to inliiorrv it* j
distribution was made It was an alternative fur '
what trrre deemed greater ceils?a temporary ft-;
?f?rt to rrliere sn overburdened Treasury until iiir '
Cpvc/nmeat could, without s sudden and destractire
revulsion in (liebusiness of ll>? country, gra I
uistly return to the just principle of raising no '
ware revenue from the per pic, m imac*. than is.
necessary for its commercial support. Krrn ti.at'
nl>miii(? was not stxikrn of hut in connection
with an amendment of the constitution. No trm-'
pynry inconvenience can justify the exercise of a
prohibited power, or a power not granted by tiut i
instrument; and it was from a conviction that thr {
power to distribute even a temporary surplus of rr-'
new m of that character, that it vm suggested !
only iaoMacetioo with an appeal to the some* of all j
legal power in the General Govern n?ent, tlic Hum ,
which ham established it- Mo snch appeal he*
Leen taken, and in toy opinion a distribution <>| the >
aurntus irrvrnne by Congress, either U? the States'
or the people, ia to bo considered as among the
prohibitions of the conrtilutiou. A* already tali- j
mated, my views have undergone a change, so far ,
as to be convinced (last ? ? altrralion of the ror??ti. j
lotion in this respect is wise or expedient The in- '
*1 newer of an iceqinnliunf s<npius upon the ir-?
gislalion of lbs General Government and the
State*, lis effects upon lire credit sratrrn of the
country, producing dangerous rihuiiot)* sad
ruinous contractions, fluctuations in tl?r prre ?.f
property, rash speculation., idleness, vxiratagancr.
and a deterioration of morals, havr taught us the .
important lesson, that so; transient mischief which ,
my attend the reduction of <?ur revs nor to the i
wants of our Government, is to Ic borne in pre
fnvnc* lo an overflowing Tirwar;.
i Wf Jrave to call your attention to anotlwr an I/- '
jeet intimately iwnrutrJ with the prrcrding onr
?<be currency of the country
It i? apparent, fr>??n Hk ?h?le mntrxt of th?foaiatitufirn.
at well aa the hittory ?-f the tune*
which gaae birth In tt. that it *w tbr purpoar ot
thr convention to rslabhah a currency contuUn; ,
of the jgeciottt itwuU Thr jr. from thrir peculiar ]
^mprrties, which rrndan-d thrin thr aUndarri ?>! j
value hi all otb-r counltiea, were adopted in Uu*.:
*< well to rttaWmh ila commercial ninndard in reference
to f imgn cnunlrtct by a permanent rulr.
21 lo f icluflc liio ucr *u n nutuuic fttruiuni of r f
i hang*, ofih ?? of cerUitt agriraiturnl commit d?.1
I'm, INflflirii Hj the lAtult-a of ?t>mr Mates an a
tender far debts, or llir sl.ii inutr pernictot;* etpr- j
client of ? paoer cum-nry Tins last, from tin-.-*,
prime* of liie evil* of i?s?ir* of p*p??r during r
tlie molntiun. I?*d become ro j tut 17 ubniimin, i
a* not onljr to BUjfgeat p!-*"'" tl??* cuoouiu- j
Hon fuHmJdanjj lh# eniiwiim of bill* of credit u> '
iIm States, but n!w? U? produce tl?at vote m tin !
r. j negation which npjftlircd toe proposition i?,
grant power to tV>ii?rr? l<? clnrirr corporation* ?
j p.Miusttiur well otjifcrntrwu} ?t the luue. as intended
t-? authorial* luo r*tab!.>diijie?)! of * national
ttbreh ww I-.' issuea .itrrr:* v i L'l.'iX > t.-.
on a c^?nlol to l>c created to sotnc extent oul of
Government stocks. Although this proposition
! was refused by a direct vote of the convention,
! lite object was afterwards in effect obtained, by
its ingenious advocates, throogh a -trained con*
I stniction of the constitution The debts of the
revolution were funded, at prices which formed
no equivalent compared with the nominal amount
ot the stock, and under circumstances which rx!
poned the motives of some of those who f?:Uci;>a*
, ted in the passage ot the act to distrust.
! Tlic facts that the value of lbs stock was great*
! !y enhanced b/ the creation of the bank, ttial it j
' was well understood that such would be the case,
and that some of the advocates of the measure
were largely benefitted by it, belong to the history
of the Limes, and arc well calculated to dimin*!
* * ?t-i-t. ?--t.1 . U,.riui Kn> brrn !
I ua l IC rcjpcci Wllicil luirm UUKi..
i i!u? to the action of liic Congress which created
; the inst:luticn.
On the establishment of a national hank, it be,
canir the interesst of it* creditor*, thai ?"ld ahoald
be superseded by liic paper ??f toe hack, a* a geu- j
I era! currency A va ue was *oon attached to the i
j gold coins, which made their exportation to for-1
eieri countries, aa a mercantile commodity. more
profitable than their retention and u* at Lome aa
money. It followed, an a mailer of course; if not
designed by those who established the bank, that
the bank became, in effect, a substitute for the
mint of the United Stale*.
I Such was the origin of a national ba:?V currency.
and such the beginning of those difficult^*
which now appear in the excersirp issues of the
hank* incorporated by the earioos Stales.
Although it may nut be possible, by any loguda-.
f tire moans within our power, to change at once
| the ?y*!rm which has tho* been introduced, and
ha* reccsred the acquiescence of all portions of the
counter it ,m certain!* oar dutT to do all that i* l
cotu'.v.rr.t with our constitutional obligation* in
I preventing li?c mischiefs which are threatened bj
it* undue extension. That the efforts of the fai
it.cn of onr Government to guard ngainsi it by
a constitutions! provision were foandid on an in- j
timale knowledge of the subject, haj been fre!
quently attestea br the bitter experience of the
coentrr. The same causes which led them to re-'
1 fuse their sanction to a power authorising the rsi
Itbltshmenl ol incorporations for banking purposes,
now exist in a imir.li stronger d?*grec to urge
us to ejert Uk* utmost vigilance in calling into action
mean* necessary to correct the cr.Is resulting
from the unfortunate exercise of the power, and it
is to be Iwpcd that the opportunity for effecting
Uus great trill be improved before the
country witnesses new ecencn of embarrassment
and diitrrtt
Variableness must ever be characteristic of a
currrncy, of which the prrcmus metals are not
the chief ingredient, or u Inch can be expanded or
" ?? ??>1 in 1K0 hnnrtnlr-i ihlt
WUU<??.U-U AHu rut ll %-w
rr ?u!a'.r the value of Uiote metals a* a standard
in lisc general trade of the world. With u* uxni.
i*Uf? constitute such a cuirvncy. and must ever
do >y until thrj are made dependent on those josl
propertied# of gold and ailrer, as a circulating
medium. which experience has proved to be nrccaaarr,
not only in this. bet in a!) other commercial
countries Where tb.wc proportion# are cot
mfu-vd .r.to the cuculaUon, and do cot control it,
it ia nixytfe#: that price* ejus virx according to
the tide of bank issues, and thr value and stability
of property must aland nmwd to all the uncertainty
which attend* (lac- administration ot institution#
that are constantly liable to thr temptation
of an interest distinct from that of the community
ia which they are established.
The pmjreas of an expansion, or raiber a deprrratiuo
of the currency, by excessive bank issues,
is altraja attended by a I?m to I lie laboring
classes. This p rtion of the community have neither
time nor opportumlv to watch the ebbs and
Hwi of the mt nrr market. Enjrajjrd froci dav !
In day ?n Uir;r uwful IwU, the* d<> not prrccitc j
that although their wa?ca arr noinc&l!; the ?a??c, !
or even fowwhsj higher. ilirjr am* greatly re. j
dueed in fact by the rapid incrrcw uf a ipunoot j
Currency which, oa it apprara to t.jsio money '
abound, they ore at f?r?t inclined to ror.ndrr a i
b!e*?:n?. It i* nol ?o with the peculator, by
whom this operation i? better understood, end u
made to contribute to iu* adrantagr. It i? not en*
til the prices of the iwceunm of lit* become to
dear that the laboring cia??ra cannot supply their
want* oct of their wage*, that the wag*"* *" *?t0<*
gradually nrarh a jo*tlr arojwlionro tale to that
of the products of their labor. When thus by the
depreciation in conacourncr of the quantity of
paper u> circulation, wage* u well a* price* become
exorbitant, it u soon found thslyic wholr
cfleet of the adulteration xa a tariff ?o our home
snduatry f?r the benefit oi the countries where
**u ?<.?hUi? itid tnslnliiti uniformity
?V,M
and moderation in pncea. It ta thm prrceirrd
that tij?- ruhanccovrni of U?e price of land and labor
produera a corrvaponding mraraae tn the price
of prodocta, until tbrsr products do not aus'ain a
competition Willi similar ones in other countries,
and Ihua LoUa manufxctutrd and agricultural production*
cease to bear nportitioa lio?n the cun
try of the spunons currency, brcauw thcr cannot
If told for coat. Tina ta tlx1 pieces* t?jr winch ?j*
cie is Usiushrd by the paper of the banks. Their
Tar.ila are aoon rtbaustrd to nay for foinen coin
moditim; the next atop is a stoppage of apecie
payment; a total degradation of paper as a curlooey
; unusual depression of prices ; the rain of
debtor*, and the accumulation uf property in the
lunda uf creditor* and cauUoti* capitalist*
It ?raa In Ticw of there evil*, together with the
dangerous power trield-d by the lianfc of tlx
I'mled Kiau-s, and iu tcpofuaucr to our couatitu
lion, that I was induced lorxrn UJC B"WT[ IUIIKI- |
re<J upon me t?jr the American people, U> prevent
the eoftUsosflff <t (bat institution But, although
nrioui 0tn|tn to our republican institutions have
brrn obviated by the laiiurr of that bank to cilofl
from the Ciuvrrnutent a irncual of ita ciurkr it
u obvious that littla has been accomplished, except
a salutary change of public opinion, towards
featuring U? the country the aoon j currenry provided
for in the constitution. In the acts of ?errial
of the Stau*? prohibit.ng the cin? la\'-r o: r.iall
notes, and the auiiliarr enactments cf r.j.vss
at the Inst on fori'????* th*;r reo-puwn *>r
payment nit pub In: account, I.W '.rur j Oncjr <>f ?lie
counir> hi* Uto advanced, 4>*i lifter p rtuui
of tl,c prc'iu# tncu!* ia/acd in'jti cur .-irciiiating j
medium There rnruurrt?ill ejr-?* '.-ly be ;
? l? . -n?nt nf State '
r?l yj?, in ?. .* ii.n.- v? -
Un bnn;?hirr ?; . . U?nk antra of atiJl
ti-2' ?"i iliie objecl'ruay b?* ma- j
Irntiij prmucud ity farther ?cl? of forbidding
thr employment, as firs! lit*, of ?ueh
bank* as continue to lean* nntr? i >*v t!<-nor.ina.
tion*, and throw tmpidir**e '!> ? ti.- way of the
circuUti :? f e !d .. J .lit-:
The rifi rl* of an ritrnN?() oI bank rrodiU l.ntl
orrr iuufi of hank jwper. harr been aUikingiy ifluatrated
in tlx* nab s <*f the ptjbbr Itnd* Fiom Iho
return* made by the vari<*ua llrjjMrra and Kern
rer? in the earlr part ol last atiuiuirr, it w ?* prjcci
red that the receipt* anaing from the aalr* ?f the.
public land* were increasing t.? an unprecedented
amount I u ? fleet, )m>* errr, tbr?r n rripU a 1 noun
Wd t'? nothing ui"fe than rredit* in bank f'bo
IniiM Irnioiit their ;io!e? to a tire 111 a tor*: thee wen*
paid to the llfcriri'rn iui?l immediately returned to
i>u< iinnk*. to Ite lent out a?;am rnilt^nn, being
mere instrument* to transfer to ?jw< nlators tinlitest
valuable public land,ami pit the (inirrnmcnl
hjr a credit ?>n the books r?t the btnk? Those j
credits on the <? k? <>f ?oiiir nf IV w< ?trm hank*, j
usualljr called ?lcpo*ite*. weir already erratty |?? !
jroliml there immediate means of payment, and !
*err rapidly incfrasinj* liidrrd cjcIi speculation i
furnished means for another; f,?r no sooner h?l mi ndividnsl
or company paid in flic notes, thin thej !
were mimeihalrly lent louiwlier f<o ? like purpose j
and the bank* urn* extending their business and
'heir issues *o hrsrtr. as to alarm considerate men '
and render it doubtful wlx-ther these hank credit-,]
if j*?-rmiite<| io ai cumulate, uould ultimately be til 1
' !V I'.as! 'o \U; ^orczuiistitt. The sprit o.'I
expansion and jmecalauun no* nwl coniinccl to the
depoaitc banks, out pervaded the whole multitude
oi bank* throughout the Union, and was giving
rise to new institutions to aggravate the evil.
The safely of the public funds, nod the
intercut of ;hc people generally, required
ill at these operations should be checked;
and it became the duty of every branch of
the General and State Governments to
, adopt all legitimate and proper means to
produce that salutary effect. Under this
a t ti,o nf
| the order which will be laid before you by
the Secretary of the Treasury, requiring
payment for the public lands sold to be
made iu specie, with an exception until
the loth of the present month, in favor of
actual settlers. This measure has produced
many salutary consequences. It
checkrd the career of the western banks,
and gave them additional strength in anticipation
of the pressure which has since
pervaded our eastern as well as the Eu
j ropcan commercial cities. By preventing
I the extension of the credit system, it uicn1
surably cut off the means of speculation,
and retarded its progress in monopolizing
the most valuable of the public lands.
I It tended to keep open the public lands
i for entry by emigrants at Government
; prices, instead of their being compelled
to purchase of speculators at double, or
i treble prices. And it is conveying into
i the interior large sums in silvor and gold,
i there to enter permanently into the currcn;
cy o( the country, and place it on a firmer
; foundation. It is confidently believed
; that the country will find in thr motives
; vliich induced that order, and the happy
' consequences which trill have ensued,
much lo commend and nothing to con*
demn.
I It rcmiins for Congress, if they np|
prove the policy which dictated this or;
dcr, to follow it up in its various bcar|
jogs. Much good, ia my judgement,
i would be produced by prohibiting sales
| of the public lands, except to actual set!
tiers, at a reasonable mlui tiun of price.
! and to limit the quantity which siull !>
sold to them. Although it is believed the
tirnrral Government urvcr ought lo receive
nv thing but constitutional eurrcn
cy in exchange for the public lands that
poi l would be of less importance if the
, lands wrrc sold for immediate settlement!
| and cultivation. Indeed, there is scarce
ly a mischief arising out of our pres-nt.
land *v?trm, including the accumulating
surplus of revenue, which would not be
remedied at once by a restriction on land
. % i ?. :
#ajcs to actual settlers; ami u promise?
other advantages to the country in gencr
ai, and to the new Stale? in particular,
which cannot fail l?? receive the moat
profound consideration ?f Congress.
Experience continues to realize the
expectations entertained as to the capaci
tv of the Stale Hanks to nerform the du
ties of liflcaJ agents for the Government
at the time of the removal of the deqios,
ilea. It uii all r?*d by the* advocates of
the Hank of the United States that the
Stale banks, whatever might be the regu
Intious of the Treasury Department,
could not make the transfers required by
the Government, or negotiate the domes
tie exchanges of the country. It is now
well ascertained that the real domrstic
exchanges performed, through discounts,
by ibr I'luted State? Bank sod its twentylive
branches, were at least one third less
than those of the drpositc hanks for on
equal period of lime; and if a comparison
be instituted between the amounts of scr
rice rendered iy wese iDtduiuui^, uu
the broader basis which has bern used b\
the advocates ol the United Mates bank
i: estimating what they consider the do
mestic exchanges transacted by it, the re
null will be still more favorable to the dr
(Misite bauks.
The whole amount of public money
{transferred bv the Bank of the United
States in 18$*, was $10,000,000. The
amount transferred And actually paid by
the deposile banks in (he yrar ending the
first of October Jast, was $39.310,*99;
the amount transferred and paid between
that period and the sixth of Movrmber
was $0,399.000; and ;hr amount ? f trans
fer warrant* outstanding on that dat ua?
811 150.000; making an aggregate ol
Ami tit* so J Tlie#c enormous sums of
V"V| w^)vv ?t ?
inoiir) fjr&l mentioned hare been iraus
ferrcu with the greatest promtiudc regu
Lrily, and the rate* at which tlu- ex
change* have been negotiated previously
to the parage of the deposite act, were
generally below those charged by the
flank of the Uni.cd States. Independent
ly of these services, which arc far great
cr than those rendered bv the United
States Bank, ant! it* twciity-ttre branches,
a ntnnhnr of the deposite bank* have,
with a commendable /mi to aid in the
improvement of the currency, imported
from abroad, at their tvn expense, large
*11111* of the precious metals, for coinage
und rireulutton.
In the same manner have wo near!) ail
the predion lis turned out in respect to
the < fleet of the removal . f the depo*ite*
?a step unquestionably necessary, to prevent
the evil* tvliicn it was foreseen the
bank itself w ould endeavor to create in
a final struuele to procure a renewal of its
charter* li may he tin:*, too, in
owe degree, with the further stopi
which IIIAv he taken to prevent the excessive
i*sue i>( other hank paper, hut it in
t-? he hoped that nothing will deter the
Frdrrnl Suite nulhoiities from the firm
and \ igorou* performance of thrir duties
th< rusclvrs and tJ the people in this re>
peel.
Iii reducing the revenue to the wants
I the (ict'i rninent, your particular ott<
ntinn is invited Jo 1110*0 articlrs which
Cii'istitutc the nrrcwarici* of life. The
duty en e-r,|( J-111? n* a wnr Isx, cud
i was uo doubt continued to assist a providing
for the payment of the war ?bt*?
There is no article the release "(which
from taxation would be felt so gen-rally
and so beneficially. To this may la added
all kinds of fuel au.l provisions. Jus*
j tice and benevolence unite in favor oT**ei
leasing the poor of our cities from birdens
which ore not necessary to the stp1
port of our Government, and tend only to
j increase the wants of the destitute*
; It will be seen by the report of the Secretary of
i the Treasury, and the accompanying docnmeits,
that the Bonk of the United Stales nas made no
* j i- - . I 5?
I payment on accoant of the stock neia oj we *v
I vcrnmont in Uul institution, although urgef to
pay any portion which might suit its conventetce,
1 and that it has given no information when payofnt
may be rxpoctod. Nor, although repeatedly rei
quested, has it furnished the information in els:
tion to its condition, which Congress authoazed
tJie Secretary to collect at tlieir laat session; scch
measures as arc within the power of the Execcivc,
i have been taken to ascertain the value of the
otock, and procure the payment as early ox ptoi.
ble.
j The conduct and present condition of that bank,
and the ^rcat amount of capital rested in it by the
: United Mates, require your corelul attention* Its
charter expired on the 3d day of March last, and
i it Las now no por.cx but that given in Uie 21st section
? to use the corporate name, style, and capa
, city, for the purpoosc of suits for the final settle
went and liquidation of the affairs and account of
the corporation, and for the sale uid disposition 01
their estate, real, personal, and raized, bat not fir
any other purpose, or in any other manner vjjha^
' sover, nor for a period exceeding two years anas
the expiration of the said term of incorporation
Bo fore the expiration of the charter, the slockbol
den of the bank obtained an act of incorporation
from the legislature o! 1'cnnsylrania, excluding
only the United Stairs- Instead of proceeding to
wind up their concerns, and pay over to the Cui
ted Statrs tbr amount of the stock held by Lhem,
the president and directors of the old bank appear
, to hare transferred the books, papers, notes, ob
ligations, and most or all of its property to the
new corporation, which entered upon business as
; a continuation of the old concern Amongst other
: acts of questionable validity, the notesol the ex
i pired corporation arc known to have been iss :ed as
' its own, and again put it: circulation. That the old
bank bsd no right to issue or rc-issuc its notes tiler
the expiration of its charter, cannot be denied,
and that it could not ron&r any auch right on its
' substitute, any more than exercise it ilsell, u equal
| ly plain. In law and honesty, the notes oi the
- bank in circulation, at the expiration of its charter,
' ?b?u!d have been calledln by public advertisement,
i paid up as presented, and, together with those on
hand, ccncrJ.'rd and destroyed Their rt-issoe is
, sanctioned by no law, and warranted by no ncces
j sity. If the United Statrs be responsible in their
?i'?t '?? ?K? mrmrri of limr notes. their re-is
sue, by the new rorpurelico, for their own brorfil,
| is a traud on the Government. If the United
Stales is net responsible, then there is no legal ir
| ?ponrib;.iti in any quarter, and it is a fraud on the
! country. They are the redeemed notes of dis
j so!red partnership, but, contrary to the wishes of
the retiring partner, and without his consent, arc
again rc-;*?ued and circulated.
It is the high and peculiar dcty of Congresa to
' decide whether any further legislation be necessary
' for the security of the large amount of public pro
perty now held and in use bj thr new bank, and
tor Vindicating the fights of the Government, and
compelling a speedy and bonral arttlrinent with all
the creditors of the old bank, public and private,
; or whether the subject shall tie left to the power
now possessed by the Kxeculive aiid Judiciary. It
remain* to be kco whether the persons, who, as
managers of the old hank, undertook to control
the tiovcmmpni, retained the public dividends,
' shut their doors U|<vn a committee ol thr HoUaw ol
. Representative*, and filled the country with panic
to accomplish their own sinister objects, may now,
' as managers of anew bank, continue with impunity
: to flood the country with a spurious currency, use
j the srren millions of Government stock for their
| own profit, and refuse to thr United Slates all infer
milion it !n the nhwiil rolidilion of liw?ir own
' property, and liw pro*pret of recovering it into
! their unn ponrMiou.
Ibe jrnbM taught by the Bank of the United
J Suu-? cnuul wrll br l-??t upon ibr A me t icu people
Thry will lair care never again to place *o
I irrmrndooj a power in irresponsible bands, and it
: will be fortunate if thej seriously consider the
consequences which are likely to result on a smaller
scale from the facility with which corporate
powers are granted by thnr Slate Governments.
li is believed that the tan ui the last session regulating
the depowilc hanks, operates onerously
and unjustly anon Ihcui in many respects; and it
ts hoped that Congress, on proper representation,
will adopt the mcditicaUons which air necessary to
[ prrrent this consequence
The report of the ccervtary of Wared interim,
) and the accompanying document*, all winch are
hcrrw.th laid lirfuie )?>u, m >11 give you lull view
I of the Circr?ifiril and important opcral-ous of tint
Department during the past year.
The military mt<rcn<cnu rendered n.ceswary by
the aggressions el the 1. ?stne ;MniuOa o| tbe Jw
i minor and Cirek lube* or tnmaos, and by other
circumstances, Lav. nquuvd the active employ
! meet of t.rajh ?ui * hoir regular force, including
i tlie n.anne coma, and ? ! laf.'C bodies of ii.ihlia
I au?! ruiuntivn V\ lUi all these cvrnis. so tar at
' fbcy arete known at the scat ?>1 Guvrruioent be
. (orr liar u-runnau->n ?>l tout a*t ?es#i. it, yu ate
! already actjunnU d aud tt t> iu? rclwir fitly nrrulul
' to lint piacr to a* bct<>rr you a burl ruuo.axy of
: it bat has since ttccurrrd.
"1 be war with the fcc.i ir.ole?, during the auui
: tnrr, an, on our , art, chiefly confined to Lbr pro
tcrlion ?t our IrunUci settlements, from the incur
torn ??l tbr enemy ; and or a necessary and im
po riant means lor lite accomplishment of tbai end,
to the maintenance of the poata previously estab
llslird lu tbe coutic of this duly, several actions
to..It piacr, in which the bravery and discipline ot
both oilier rs and men were conspicuously display
rd, and which 1 have deemed it proper to notice,
in rrspcct to tbr I or iiver, by the giauung of brcrct
rank lor gal-ant services in the field Hut as the 1
force of the Indians uan not so lar weakened by
these partial successes, as t<? lead them to aubmtt,
and as their aaragr inroad* were frequently te
prated, early measures were ukcii for placing at
the disposal of (.turnnor Call, n ho. as commander
in rluef ol the Territorial uuliUa. had been tempo j
rarilv invested w ith the command, an ample force, i
- ..f . i
|U| M4V |ruip^r?i * II AUIUIIt^ UiiVIMlVC l?j?TItlUWH?, j
to ti?*- mit*l elite lent manner, so soon an the season
should permit Mnjnr Gvticrtl Jesup uu also
directed on the conclusion of hi* duties in the
Creek country, to repair to Florida, and bmuiik
the command.
'I'lte re*ult of the first movement mode by the
force* under the direction cf tioternor Call, in
October last, as detailed in the accompanying pa I
per*, excited much surprise and disappointment.
A full explanation has been rerouted ot the causes
which led to the failure ol that movement, but has
not yet been received In the mean time, a* it
was loured that tile health of (torernor Call, who
was understood to have suffered much from sick
lies*, might not be adequate to the crisis, end an
Major (ieneral .U-nup was known to have reached
Florida, tint officer was directed to assume the
tummanu. nnu 10 prosecute ail m-eitru! operations
with the utinont promptitude and vigor From the
fnrcr lit hi* dmportl, and the dippofcitionK fie hs?
nude and ?-? instructed to make, andfr?m the very
efficient tin'inurcs which :t u since ascertained
have l-con taken by ftovernor Vail, there i* tonm
t'i hope that tht*y will r.oon he enabled to irduce
the enemy to subjection In the mean time, as
you fill pcrcei* c front the rrnct! ?.f the f??.c:(tarv;
(here is urgent necessity ?ut father appropriation*
to suppress these hostilities. Happily
for the interests o( humanity, the
hostilities with the Creeks irete brought to a
close soon after your adjournment, without
that effusion of blood which at one time was
nnnpalionrlm! jjj inAtiiablc. The nneeindi
tiotial submission of the hostile party was
followed by their speedy removal lo tfaocountry
assigned them west of the Mubu?
sippi. 7 be inquiry as to alleged (rands in
the-purchase of the reservations .of these Indians,
and the causes of their hostilities, requested,
by the resolution of the House of
Representative of the 1st of July last, to be
inadc by the President, is now going on,
through the agency of commissioners appointed
for that purpose. Their report may bo
expected during your present session.
The difficulties apprehended in the Cherokee
country have been prevented, and the
peace and safety of that region and its vicinity
effectually secured, by the timely mear
sures taken by the War Department, and.
still continued.
The discretionary authority given to Gen.
Gaines to cross the Sabine, and to occupy
a position as far west as Nacogdoches, in
case he should deem such a step necessary
- * " ? ?* anrl (A fltA
to 111C ptuictliuu til UtC IIUIIULI, IUJU >v .-V
fulfilment of the stipulations contained farout
treaty with Mexico, and the movement
subsequently made by that offcer, hare been
alluded to iu a former part ortlri^'message.
At the date of the latest intelligence from
Nacogdoches, our troops were jet at that
stat ion; hut the officer who has succeeded
General Gaines has recently been advised
that, from the facts known at the seat of
Government, there would seem to be no adequate
cause for any longer maintaining that
position; and he was accordingly instructed,
in case the troops were not already withdrawn
under ike discretionary powers before
possessed l>j him, to give the requisite orders
lor that purpose on the receipt of tbe
instructions, unless be shall then hare in his
possession such information as shall satisfy
j him that lite maintenance of tbe post is csjscuiiaito
the protection of our frontiers, and
' ? Im*?v cfinnti.
I lO llil' UUC IACLUIIUU VI IMII tym
! (ions, as previously explained to bim.
: Whilst the necessities existing during
j the present year, fur the service of miJi
tia and volunteers, hare furnished new
| proofs of the patriotism of our fellow
citizens, they hare also strongly illustrai
ted the importance of an increase in the
;rank and tile ot the regular army. The
views ot this subject submitted by tho
Secretary of War, in his report, meet my
entire concurrence; and are earnestly
! commended to the deliberate attention of
jCongiess. In this connection it is also
i proper to remind you, that the defects in
our present ir.iliits system arc every day
{rendered more apparent. The duty of
| making further provision by law for or*
i ganizing, arming and disciplining this arm
iof dcftmrc has been so repeatedly pro*
: ncuicd to Congress by myself and my predecessors,
thai 1 deem it so/ficirnf on Una
occasion to refer to tbe list annual tncna?igc,
and to former Kxreutive communications,
in which the subject has been discussed.
4 It appears from the reports of the officers
charged with mustering into service
the volunteers called for under the
i act of Congress of the last session, thai
1 more presented themselves at the place of
. rendezvous in Tennessee than were sufficient
to meet the requisition which had
been made by the {Secretary of "War upon
' the Governor of that State. This waa
; occasioned by the omission of the Goi
vernor to apportion the requisition to tbe
different regiments of militia, so as to ub- ^
.ain the proper number of troops, and no
more. It s< ?-n<* but just to the patriotic
citizens who tepaired to the general rendezvous,
under circumstances atilhotizing
tl-eni to brlicvc that their services were
mi'ded, and would be accepted, thattho
expenses incurred by them while absent
fruui their homes, should be paid by tho
Government. I accordingly recommend
(hat a law to this effect be passed by Congress,
giving them a compensation which
Hili?- v?*r their expenses on the march to
u'?l lion; the place of rendezvous and
?? hue (here; in ci.burcii??n with which, it
will also be piopcr to make pruvibi-.m for
sin h other equitable claims, growing out of
the service of the militia, as may not bo
embraced in the elifting laws.
On the unexpected breaking out of hostilities
in Florida, Alabama, and Georgia,
it became necessary, in some cases, to
tak? the property of individuals for public
use. Provision should be made by
law for imlcmnifxing the owners? end I
1 would also respectfully suggest whether
some provision may not be made, consistently
with the principles of our Government,
for the relief of the sufferers
by Indian depredations, or by the operations
c?f our own troops.
| No time was lost alter (he making of
the requisite appropriations, in resuming
| (lit* great national workol completing the
unfinished fortifications on on; seaboard,
and of placing them in a proper slate of
defence. In consequence, however, of
the very late day at which those billa were
passed, hut little prrgrcss could tc made
during tin- season which has just closed.
A very large om< unt of the moneys granted
at your last season, accordingly, remains
unexpended; but as the work will
be ngnin resumed at the earliest moment
in the coming spring, the balance of the
existing appropriations, and in several
ease-, which will be laid before you with
the proper estimates, ftirlher sun-s for the
i. t * . . - - - J?'*
r-Kc 'Djpcif, may be ufc.ullv espenucu
hiring the next year.
The recommendations of on increase tn
the Engineer Curj s nnrl f??r a reorganization
el i e Tcf-opraj Meal Corps sn }~
mi'.tt 'i 10 \ < m in m v 1 itit cur.''"l mctsag