President's Message

To the Scnate and House of Represent atines of the United States: Fellow Citizens - You have been assemblod inyour respective halls of Legislatioa under a proclamation hearing the signaturc of theillustrious citizen, who was so lately called by the direct suffrages of the poople, to the discharge of the important functions of the Chief Executive office - u pon the expiration of a single month from the day of his installation he has pa id the great debt of nature, leaving behind him a name associaied with the recollection of numerous benefits conferred upon the country, during a long life of patriotic devotion. With this public bereavement are connected other considerations which will nol escape the attention of Congrcss. The p repara t ion s necessary for his removal to the seat of Government, in view of a residence of four years, must have devolved upon the late President heavy expenditures, whicb, if pertuitted to burlhen the lunited resources of his private fortune, may tend to the serious embarrassment of his surviving family; and it is therefore rcspcctfull y submitted to Congress whether the ordinar}' principies of justice would not díctate the propriety of its legislative interposition. By the provisions of the fundamental law, the powers and duties of the high station to which ha was elected, have devolved upon me; and in the di-poaiiion of the representativos of the States and of the people, wül be found to a great oxtent, a solution of the problem to which our institutions are, for the first time, subjected. In entering upon the duties of this office, I do not feel that it would be becomiog in me to disturb what had been ordered by my lamented predecessor. Whatevei, tberefore, may have been my opinión originally as to the propriety of convening Congress at so early a day from that of its late adjournraent, 1 fbund a new and controlling inducement not to. interfere with the patriotic desires of our late President, in the novelty of the situatie n in which I was so unexpectedly placed. My first wisb, under such circumstanccs, would nccessarily have been lo have called to my aid, in the administration of public aftairs, the combincd wisdom of the two Houses of Congress, in order to take their counsel and advice as to the best mode of extricating the Government and ihe country from the embarrassments weighing heavily en both. I am then most happy in fïnding myself, so eoon alter my accession to the Presidency, surrounded by the immediate representatives of the States and People. No important changos having taken place in our foreign relations since the lasi ses9ion of Congress, it is not deemed necessary, on tbis occasion, to go into a de tailed statement in regard to them. I am happy to say that I see nothing to destroy the hope of being able to preserve peace. The ratification of the treaty with Portugal has been duly exehanged between the two Governments. The Government has not been inattenlive to the interests of those of our citizens who have claims on the Government of Spain, found ed on express treaty sjipulations ; and a hope is indulged that the representations which have been made to that Government on this subject, may lead, ere long, to benericial resuits. A correspondence has taken place bethe Secretary of State and the Minister of Her Bntlnanic Majesty accredited to this Government on the subject ofAlexander M'Leod's indictment and inaprisontnent, copies of which are herewith comraunicated to Congress. In addition to what appears from these papers, it may be proper to state, that Al ex ander M'Leod has been hcard by the Supremo Court of the State of New York, on his motion to be discharged from irnprisonment, and that the decisión of that court has not as yet been pronounced. The Secretary of State has addressed to rae a paper upoa two subjects, interesting to commerce of the country, which will receive my consideration, and which I have the honor to communicate to Congress. So far as it depends upon the course of this Government our relations of good will and friendship will be sedulously cultivated with all nations. The true American policy will be found to consist in the exercise of a spirit of justice to be roanifested in the discharge of all our international obligations to the weakest of the family nations as well as to the most powerful. - Occasional conflicts of opinión may urise. but when the discussions incident to them ure conducted in the language oftruth, and with a strict regard to justice, the scourge of war will for the most part be avoided. The time ought to be regarded as having gone by when a resort to arms is to be csteemed the only proper arbiter of national diiferences. The census recently taken shows a reglarly progressive increase in our populaliou. Upon the breuking out of the war of tos Revolution, our numbers scarcely equulled 3,000,000 soula. Tliey already exceod 17,000,000, and will continue to progrees in a ratio which duplicates in a period of about 23 yeara. The old States cootain a territory sufficient in itself lo maintaio a population of additional millioni, anothe most populous of the new States may even yet be regarded as but partially settled, while the new lands on thia ide of the Rocky Mountains, to say cothing of the immense región vhich stretches irom the baso of those mountains o the Columhia PJver. about 270,000,000of acres, ceded and unceded, still reina in ; to be brought into market. We hold out to ihe people of other countries an invitation to come and settle among us as raembers of our rapidly growing fatnily, and for the bles? iiigá which we offer them, we require of them to look upon our country as their country, and to unite with as in the great task ot preserving our institutions nnd thereby prejerving our liberties . No motives exist of foreign conquesta - we delire but to reclaim our almost inimitable wildernesá, and to introduce into their depth tho lights of" civil jzat ion. While we sball at all times be prepared to vindícate the national honor, our most earoest desire wil be to maintain an unbroken peace. In presenting the foregoing views, l cannot with huid the expression of opinión that there exista nothing in the extensión : of our empire, over our acknowledgcd! possessions, to excite the alarm of the patriot for the safety of our institutions. - The Federative system, leaving to each Slate the care of its dome3tic concerns, and devolviog on the FeJeral Government those of general importance, adraitsin the safety of the greatest expansión; but, at the same time, I deern it proper to ndd that ! there will be found to exist, al all times, an imperious necessity for restraining all the functionaries of this Government within the range of their respective power?, thereby preserving a just balance belween the power granted to this Government andj those reserved lo the States and to the people. Frons the report of the Secretary of the Treasury you will perceive that the fiscal means, present and accruing, are insullïcient to supply the wants of the Government for the current year. The balance in the Treasury on the 4th day of March last, notcovered by outstanding drafts, and exclusive of tru3t funds, is estimated ai1 $860,000. This includes the sum of $215,000 deposited in the mint and its, branches to procure metal forcoinnge and in the proces3 of coining, and which could not be without inconvenience - thus leaving subject to drafts in the various deposi-' tories, the surn of $645,000. By virtue of two several acts oi'Congress, the Secreta-! ry of the Treasury was authorized lo issue, on and after the fourth day of March last, Treasury noies to the amount of $5,413,-' 000, making an aggregate available fund on hand of $6,058,000. But this fund was chargeable with out-' standing Treasury notes, redeemable in the current year, and interest thereon to the estimated amount of $5,280,000. - There is also thrown upon the Treasury the payment of a large amount of demands ! accrued in the whole, or in patt, in former, y'etri, which will exhaust the avaiable fund meaas of the Treasury, and leave the accruing revenue reduced as it is ia amount burthened with debt, and charged wjh the current expenses of the Govern oient. The aggregate amount of outstanding, appropriations, on the 4th day of March' last, was $33,429,616 50, of which $24,-' 2i0,300 will be required during the cur- rent year; and there will also be required for the use of the War Department, additional appropriations to the amount of $2,-; 511,132 98, the special objects of which will be seen by reference to the Report of. the Secretary of War. The anticipated means of the Treasury are greatly inadequate to the demand. The receipts from' customa fbr the last three quartera of the last year, and the firstquarler of the pres en' year, amounted to $12,100000. T.ie receipts for lands for the same time, to $2,742,430 60, showing an average revenue from both sources of $1,236,860 per month. A gradual expansión of trade, growing' out of a Mstoration of confidence, together with a reduction in the expense of collecttng, and punctuality on the part of collect-! ing officers, may cause an addition to themonthly receipts from the customs - they are estimated for the residu e of the year,1 from the4ih of March, at $12,000,000. The receipts from the public lands, for the same time, are estimated at $2,500,000, and from miscellaneous sources, at $170,000, ma Uigan aggregate available fund within the year of $15,315,000, which j will leave a probable deficit of $11,400,132 98. To meet this some temporary. provisión is necessary, until the amountj can be absorbed by the excees of revenues; which are anticipated to accrue at no dis-! tant day. There will fall due within 'he next three months Treasury Notes of the issue ofj 1840, including interest, about $2,850,-' 000. There ia chargeable in the same' period, for arrearages for taking the Sixth Census, $294,090, and the estimated expenditures for the current service are about! about 8,100,000, making the aggregate demand upon the Treasury, prior to the first of September next, about 11,340,000.! The ways and means in the Trensury, and estimaled to accrue within the above named period, consist of about $694.000, of fund available on the 28th ultimo, and unissued balance of Treasury notes authorized by the act of 1841, amouoting to $1,955,000, and astimated receipts from all sources ol $3,800,000, making an aggregato of about 0,450,000, and leaving a probable deficit on the first of September next, of $1,845,000. In order to supply tho wanta of the Government, and intelligent constituency, in view of their best interests, will, without lesitatioti, submit to all necessary burthens. But it is, nevertheless, important so to impose them as to avoid defeaüng hejust expectations of the countrying out oí" pre-exisiing laws. Tbe act of the second March, 1833, commonly cal led the Compromiso act, should no be altered,except under urgent necessities, which are not believcd at thia time to exist. One year only remains to complete ihe series of reductions provided for by law, at which time provisions made by the aame law, and which then will be brought actively in aid of the mauufacturing intereso of the Union, will not fail to produce the most benefícial resulta. Undcr a system ofdiscriminating duties, imposcd for purposes of revenue, in union with the provisions of existing laws, it is to be hoped that our policy in future wil) be fixed and permanent - so us to avoid those constant fluctuations which defeat the very objeds they have in view. We shall thus mainmin Lt posilion, which, while it will ennble us the more reudily to meet the advances of otlier countries calculated to promotc our trade and commerce, will at the same time leave in our own hands the means of retaliating, with greater effect, unjus t rejruftuioiisï In in tu i e coiinection with the question of revenue, is that which makes provisión for e suitable iiscal agent, capable of ad ding Jncrcascd facilities in the collection and disbm'sëment of the public revenue?, rendering more secure their custody, and consulung a true economy in the great, raultiplted and delicate operatiuns of the Treasury Department. Upon such an agent depende, in un eminent degree, the establishment of a curreney of uniforrr value, which is of so great importance to all the espential interests of society, and on the wisdom to be manifested in us ere ation muh depends. Sj intimately interwoven are its operations, not only with the interests of individuals, but of States, that il may be regarded, to a great degree. as controlling both. If paper be used as the chief medium of circulation ánd thepowtrjbe vested in the Government of issuing it at pleasure, ei ther in the form of Treasury drafts or any other; or, if Banks be used as the public deposilories, wilh liberty to regard all surplusses, from day to day, as so much added to their active captital, pricesareexposed to constan fluctuations, and mdustry to severe suffenng. In the one case, polilical considerations directed to party purposes may control, while excessive cupidity may prevail in the other. The public is thus constantly liable to imposiüon. Expansione and coutractioas may follow each other ia rapid succefS.on - the one engendering a reckless spirit of adveuture and speculutton, which embraces Siates as well as individuáis - the other causing a fu II in prices, and accomplishing un entire change in the aspect of affairs . Stocks of all sorts fapidly decline, individuals are ruined, audStates embarrassed - even in their effurtB to meet with punctuality the interest on their debts. Such unhappily 13 the condition of things now existing in the United States. These effects may readily be traced 10 the causea above referred to. The public revenue being removed frum the then Bank of the United Stutes, under an order" of a late President, were placed in selected State Banks, which, actuated by the doublé motive of conciliating the Government and augmenting tbeir profits to the greátest possihle extent, enlarged extravaganily tbeir discounts, thus enabling all olher existing banks to do the same. Large dividenda were declared, which, stimuluting the cupidity of cupitalists, csused a rush lo be made lo the Leislatures of the respective States, for similar acts of incorporation, which by many of the States under a temporary infatuation, were readily granted - and thus the augmentaron of the circulating medium, produced a most fatal delusion. An illustration derived trom the land sales oí the period alluded to, will serve best to show the effect of the whole systera. The average sales of the public lands for a period of ten years prior to 1834, had nol much exceedod $2,000,000 per annum. In 1334, they attained in round numbers to the amount of $6,000,000, in the succeeding year of 1835, they reached $16,000, 0Ö0, and the next year, of 1836, they amounted to the enormous sum of $25,000,000- thus crowding into the space of three years upwards of sevetity-three years purchase of the public domain. Sü apparant had become the necesity of arresting this course of things, that the Executive Department assumed the high ly quesüonable power of descriminating in the funds to be used in payment, by different classes of public debtors. A discrimination which was doubtlesoly designed to conect the most ruinous state of things, bj the exaction of specie in all paymants of public lands, but which could not at once arrest the tide which had so strongly set in. Henee the deinand for specie became unceasing, and corresponding prostration rapidly ensued under the necesities creatcd with the banks, to cur. tu il' their discounts, and thcreby to reduce their circulation. I recur to these things with no disposiiion to censure pre-existing admiuUtrations of the government, but simply in exemplificatiou of the trutb of the position which 1 have assumed. If then any fiseul agent which may be created, ehaJl be placed without due restrictions, either in the bands of the administra tors f the Government, or those of private individuals, the temptation to abuse wül prove to be resistless. Objects of po liticaf aggraudizement may seduce thefirst snd the promptins of a boundless cupidity will assail the last. Aaided by the expenonc of the past, it will be the pleasure) f Congreea soto gúard and fortify the jubhc intereats, in the creation of any iiew agent as to place them, so far as human wisdom can uccomplish it, on a foots ing of pertect security. Within a few yoara past three difTerent scheemes have been before the country The charter of the Bank of the United States, expired by its own iimitations in 1836; an effort was made to renew ii,which received the sane tion of the two Houses of Congrees, but tke President exerci9ed the veto power, and the measures were defeated. A regard to the truth requires" me to say, that the President was fully sustained in the course he had taken by the popular voice. His successor to the Chair of State unqualljfiedly pronounced hisopposition to any new charter of a siniilur institution; and not only the popular election which brought him into power, but the elections through much of his term seemed ulearly to indícate a concurrence with him in sentiment on the part of ihe people. Alter the public moneys were withdrawn from the United States Bank, they were placed in deposite wilh the state Bank?, and the result of' that policy has been befbre the country. To say nothing as to the question w heiher that experiment was made underpropitiousor advers circumstances, it ma y safely be asserted that itdid notreceive the unqualiñed condemnation of most of its early advocates, and itis believed was also condemned by the popular sentiment. The existing subtreasury system does nut scem to síand in high favor with the people, bul has recently buen c;ndemned in a mannerto plainly to achnit of a doubt. Thus in the short period of eight yeaas, the popular voice may bc regarded as ha ving condemned each of these schemea of fina nee to which I have adverted. As to the first, it was introduced at a time (1836) when the State Banks, ihen comparatively few in number, had buen forced to suupend specie payments by reason of the war which had nreviously prevailed with Great Hritain. ' Whether if the U. S. B. charter, which expired ir. 1811, had been renewed in due season it would have been enabled to conlinup specie paynisnts during the war, and the disasterous period to the commerce of ihe country which imrnediately succeeded, is to say the least, problemática! : and wheth er the U. S. Bank or the same was accomplishcd through the instrumentality o other means, was a matter of some difficu ty at that time to determine - certoin itis that for the first years of the operation o that Bank, its course was as disuslerous us its latter years were usefuf. A9 to the secor.d, the experiment was tried with a rebundant treasury, which continued toincrease, until it ssemed to be the part of wisdom to distribute the surplus revcnue among the states - which operating at the same time with the specie circular, ond the causes before adverted to, caused ihem to suspend specie payments, and involved the country iu the greatest embarrassment. And a9 the third, if carried through all the stages o: its transmutalion, from paper and specie to nothing bnt the precious metáis, lo sa) nothing of the insecurity of the public moneys, its injurious effects have been anticipated by the country, in its unqnllifiei condemnation. What is now to be regarded as the judgement of the American people, on this whole Buliject, 1 huve no accurate means ofdelermining, but by appealing to their more immediate representatives. The late contest, which terminated in the elee tion of General Harrison to the Presidency, was decided on principies well kaown and openly declaaed; and while tfee subtreasury received in the result of the mos decided condemnation,yet no other se hem e of fínance seemed tobe concurred in. To you, iben, who have come more directly from the body of our commou constituents 1 submit the entire question, as best qual ified lo give a full exposition of their wish es and opinión?. I shall be ready to coneur with you in the adoption of such system as you may popose, reserving to myseifihe ultímate power of rejectmg any measure, which may, in my view of it, conflict with the constitution, or otherwise jeopardize the power of the country - a power which J could not part with, even if I would, but which I will not believe any act of yours will cali into requisition. I beg leave particularly to cali your att en tion to the accompanying report from the Secretary of War. Besides the present state of the War which has so long afflicted ihe temtory of Florida, and the various uther matters of interest therein referred to, you will learn from it that the Secretary has instituted an inquiry into abuseö, which promises to develop gross enormities in connection withlndian treaties which have been negotiated, as well as in the expenditures for the removal and subsistence of the Indians. He represents also oiher irregularities of a sertous nature that have grown up in the prac tice of the lndian Department, which will require the appropriation of upwards of $200,000 to correct, and which claim the immediate attention of Congress. In reflecting on the proper means of defendiug the countrv, we cannot shut our eyes to the consequences, which the iotroduction und the use of power of steam of steam upon the ocean are likely to pro duce in wars between maritime States. - We cannot yei sfee the extent to which this power may be applied in bel gerent operation9, connecting itself as it does with recent improvements ia the scienceofgunnery and projectiles; but we need ïave no fear of being left, in regard to these things, behind the most active and skillful of other nations, if the genius and enterprise of our fellow-citizens receive proper eucouragement and directiona from governmenf. True wisdom would, nevertheless, seein. to díctate the necessity of placing in per fect condition those fortifications which, are designed for the prolection of our principal cities and roadsteads. For the dcfence of out exten&ive maritime coast,our chief reliance should be placed on our navy, aided by those inventions wluch are destined to recommend themselves to public adoption - but no time should be lost in placing our principie cilies on the sea board, and the lakes, in a state of entiro security from foreign assault. Seperated as we are from the couniries of the Oíd World, and in much unuflfected by their policy, we are happily relieved from the necessity of rnaintaining large standing armiea intimes of peace. The policy which was adoptcd by Mr. Monroe,shortly afier the conclusión of the late war with Greai Brituin, of preserving a regularly Ü ized siaff, sufficient for the cbmmand of a = large military force, should the necessity . of one arise, is founded as well in econtmy as in true wisdom. Provisión is thus made, upon filling up the rank and file, which ca readily be -' done on any emergency, for the introduction of a sysiem of discipline, boih prompt : ly and efRcientiy. All that is requiredia time of peace. is to maintain a sufficient number of men to guard our fortificationF, to meet any sudden contingency, and to encounter the first shock of war. Our ehiof reliance must be placedon the militia; they constilute the great body of national guards, and inspired by an ardeut love of country, willbe rcady at all limea and at all seasuns to repair with alacrity to its defence. Il will be regarded by Congress, I doubt not, at a suitable lime,aa one of il9 higher duties to attend to their complete organization and discipline. 1 cannot avoid recurring, in connection with this subj, et, lo the necepsity which exists for adopting some suitable meaaure, whereby the uniimited creation of banks by the Slat es, may be corrected in future. Such result can be most readily achieved by ihe consent of the States, to be expresed in the form of a compact among ihem selves, which they can ooly enter int with the consent and approbation ofihia Government. A consent which might, m the present emergency of the public demanda justifiably be given by Congressen advance of any action by the States, aa an inducement to such action upon terma well defined by ihe act of tender. Such u measure, addresaing itself to ihe calrn re- iicciiuu of the States, would tlnd in the experience of ihe past, and the condition of the present, much to sustain it - and it is greatly tobedoubted whether anyscheme of finance can prove for any lengih oí titee successful, while the States shall continue m thè unreslrained power of creating banking corporalions. This power can only be limitcd by iheir consent. With the adoption of a firiancial agency of asatisfatïtory character, the hope may i be indulged ihat the country may once more return.toa state ofprosperity; measures auxilliury thereto, ane in some measure inseparably connected with its suc cess, will duubtless claim the attention of Congress. Among such, a distribution of the proceeds of the t=alcs of the public landd provided such disiribution does not force upon Congress the necessity of imposing upon commerce heavier burthens thua those contemplated by the act of 1833, would act as an efficiënt remedial meaeure by being brought directly in aid of the States. As one sincerely devoted to th task of preserving a juet balance in our sysienvofGovernment by the maintenancc of the States in a condition the most free and re?pcctable,and in the full possession of all their power, I cannot otherwise than [eel desirous for their emancipation from the situation to which the pressure on their finances now subjects them. And while I must repudíate, as a measure founded in error, and wanling constitutional sauction, the sligiitest approach to an assumption by this government of the debts of the Statef yet i can see in the distribution adverted to, much to recommend it. The compacts between the proprietorstatcs and ibis goverument, expressly güar antee to the States all the benefits wbicii may arise from the sales. The modVby which this is to be effected, addresses il-r self to the disjcretion of Congress as the trustee for the States, and itsexercise,aiter the most beneficial umnner,-3 restraifi ed by uothing in the granls or in the constitution, so long as Congress shall consult that equality in the distribution which Ihe compact require. In the present condition of some of the States, the question of distribution may be regarded as substantially a question between direct and indirect laxation. If the distribution be not made in some form or other, thone cessity will daily become more urgent with the debtor-slates for a resort toan oppressive system of direct taxation, or their credit, and necessarily their power and influence, will be greatly diminished. The payment of taxes, often the most inconvenient and oppresive mode, will be exacted in place of contributions for the most part voluutarily made, and therefore comparatively unoppreseive. The stages are emphatically the consutuents of tbis Government, and we should be entirely regardes of the objects held in view b) them, in the creation of this goveramen,