The attention of Congress is earnestly invited to the regulation of the

deposits in the State banks by law. Although the power now exercised by

the executive department in this behalf is only such as was uniformly

exerted through every Administration from the origin of the Government

up to the establishment of the present bank, yet it is one which is

susceptible of regulation by law, and therefore ought so to be

regulated. The power of Congress to direct in what places the Treasurer

shall keep the moneys in the Treasury and to impose restrictions upon

the Executive authority in relation to their custody and removal is

unlimited, and its exercise will rather be courted than discouraged by

those public officers and agents on whom rests the responsibility for

their safety. It is desirable that as little power as possible should

be left to the President or the Secretary of the Treasury over those

institutions, which, being thus freed from Executive influence, and

without a common head to direct their operations, would have neither

the temptation nor the ability to interfere in the political conflicts

of the country. Not deriving their charters from the national

authorities, they would never have those inducements to meddle in

general elections which have led the Bank of the United States to

agitate and convulse the country for upward of two years.

The progress of our gold coinage is creditable to the officers of the

Mint, and promises in a short period to furnish the country with a

sound and portable currency, which will much diminish the inconvenience

to travelers of the want of a general paper currency should the State

banks be incapable of furnishing it. Those institutions have already

shown themselves competent to purchase and furnish domestic exchange

for the convenience of trade at reasonable rates, and not a doubt is

entertained that in a short period all the wants of the country in bank

accommodations and exchange will be supplied as promptly and as cheaply

as they have heretofore been by the Bank of the United States. If the

several States shall be induced gradually to reform their banking

systems and prohibit the issue of all small notes, we shall in a few

years have a currency as sound and as little liable to fluctuations as

any other commercial country.

The report of the Secretary of War, together with the accompanying

documents from the several bureaux of that Department, will exhibit the

situation of the various objects committed to its administration.

No event has occurred since your last session rendering necessary any

movements of the Army, with the exception of the expedition of the

regiment of dragoons into the territory of the wandering and predatory

tribes inhabiting the western frontier and living adjacent to the

Mexican boundary. These tribes have been heretofore known to us

principally by their attacks upon our own citizens and upon other

Indians entitled to the protection of the United States. It became

necessary for the peace of the frontiers to check these habitual

inroads, and I am happy to inform you that the object has been effected

without the commission of any act of hostility. Colonel Dodge and the

troops under his command have acted with equal firmness and humanity,

and an arrangement has been made with those Indians which it is hoped

will assure their permanent pacific relations with the United States

and the other tribes of Indians upon that border. It is to be regretted

that the prevalence of sickness in that quarter has deprived the

country of a number of valuable lives, and particularly that General

Leavenworth, an officer well known, and esteemed for his gallant

services in the late war and for his subsequent good conduct, has

fallen a victim to his zeal and exertions in the discharge of his duty.

The Army is in a high state of discipline. Its moral condition, so far

as that is known here, is good, and the various branches of the public

service are carefully attended to. It is amply sufficient under its

present organization for providing the necessary garrisons for the

seaboard and for the defense of the internal frontier, and also for

preserving the elements of military knowledge and for keeping pace with

those improvements which modern experience is continually making. And

these objects appear to me to embrace all the legitimate purposes for

which a permanent military force should be maintained in our country.

The lessons of history teach us its danger and the tendency which

exists to an increase. This can be best met and averted by a just

caution on the part of the public itself, and of those who represent

them in Congress.

From the duties which devolve on the Engineer Department and upon the

topographical engineers, a different organization seems to be demanded

by the public interest, and I recommend the subject to your

consideration.

No important change has during this season taken place in the condition

of the Indians. Arrangements are in progress for the removal of the

Creeks, and will soon be for the removal of the Seminoles. I regret

that the Cherokees east of the Mississippi have not yet determined as a

community to remove. How long the personal causes which have heretofore

retarded that ultimately inevitable measure will continue to operate I

am unable to conjecture. It is certain, however, that delay will bring

with it accumulated evils which will render their condition more and

more unpleasant. The experience of every year adds to the conviction

that emigration, and that alone, can preserve from destruction the

remnant of the tribes yet living amongst us. The facility with which

the necessaries of life are procured and the treaty stipulations

providing aid for the emigrant Indians in their agricultural pursuits

and in the important concern of education, and their removal from those

causes which have heretofore depressed all and destroyed many of the

tribes, can not fail to stimulate their exertions and to reward their

industry.

The two laws passed at the last session of Congress on the subject of

Indian affairs have been carried into effect, and detailed instructions

for their administration have been given. It will be seen by the

estimates for the present session that a great reduction will take

place in the expenditures of the Department in consequence of these

laws, and there is reason to believe that their operation will be

salutary and that the colonization of the Indians on the western

frontier, together with a judicious system of administration, will

still further reduce the expenses of this branch of the public service

and at the same time promote its usefulness and efficiency.

Circumstances have been recently developed showing the existence of

extensive frauds under the various laws granting pensions and

gratuities for Revolutionary services. It is impossible to estimate the

amount which may have been thus fraudulently obtained from the National

Treasury. I am satisfied, however, it has been such as to justify a

re-examination of the system and the adoption of the necessary checks

in its administration. All will agree that the services and sufferings

of the remnant of our Revolutionary band should be fully compensated;

but while this is done, every proper precaution should be taken to

prevent the admission of fabricated and fraudulent claims.

In the present mode of proceeding the attestations and certificates of

the judicial officers of the various States from a considerable portion

of the checks which are interposed against the commission of frauds.

These, however, have been and may be fabricated, and in such a way as

to elude detection at the examining offices. And independently of this

practical difficulty, it is ascertained that these documents are often

loosely granted; some times even blank certificates have been issued;

some times prepared papers have been signed without inquiry, and in one

instance, at least, the seal of the court has been within reach of a

person most interested in its improper application. It is obvious that

under such circumstances no severity of administration can check the

abuse of the law. And information has from time to time been

communicated to the Pension Office questioning or denying the right of

persons placed upon the pension list to the bounty of the country.

Such cautions are always attended to and examined, but a far more

general investigation is called for, and I therefore recommend, in

conformity with the suggestion of the Secretary of War, that an actual

inspection should be made in each State into the circumstances and

claims of every person now drawing a pension. The honest veteran has

nothing to fear from such a scrutiny, while the fraudulent claimant

will be detected and the public Treasury relieved to an amount, I have

reason to believe, far greater than has heretofore been suspected. The

details of such a plan could be so regulated as to interpose the

necessary checks without any burdensome operation upon the pensioners.

The object should be two-fold: To look into the original justice of the

claims, so far as this can be done under a proper system of

regulations, by an examination of the claimants themselves and by

inquiring in the vicinity of their residence into their history and

into the opinion entertained of their Revolutionary services. To

ascertain in all cases whether the original claimant is living and this

by actual personal inspection. This measure will, if adopted, be

productive, I think, of the desired results, and I therefore recommend

it to your consideration, with the further suggestion that all payments

should be suspended 'til the necessary reports are received.

It will be seen by a tabular statement annexed to the documents

transmitted to Congress that the appropriations for objects connected

with the War Department, made at the last session, for the service of

the year 1834, excluding the permanent appropriation for the payment of

military gratuities under the act of June 7th, 1832, the appropriation

of $200,000 for arming and equipping the militia, and the appropriation

of $10,000 for the civilization of the Indians, which are not annually

renewed, amounted to the sum of $9,003,261, and that the estimates of

appropriations necessary for the same branches of service for the year

1835 amount to the sum of $5,778,964, making a difference in the

appropriations of the current year over the estimates of the

appropriations for the next of $3,224,297.

The principal causes which have operated at this time to produce this

great difference are shown in the reports and documents and in the

detailed estimates. Some of these causes are accidental and temporary,

while others are permanent, and, aided by a just course of

administration, may continue to operate beneficially upon the public

expenditures.

A just economy, expending where the public service requires and

withholding where it does not, is among the indispensable duties of the

Government.

I refer you to the accompanying report of the Secretary of the Navy and

to the documents with it for a full view of the operations of that

important branch of our service during the present year. It will be

seen that the wisdom and liberality with which Congress has provided

for the gradual increase of our navy material have been seconded by a

corresponding zeal and fidelity on the part of those to whom has been

confided the execution of the laws on the subject, and that but a short

period would be now required to put in commission a force large enough

for any exigency into which the country may be thrown.

When we reflect upon our position in relation to other nations, it must

be apparent that in the event of conflicts with them we must look

chiefly to our Navy for the protection of our national rights. The wide

seas which separate us from other Governments must of necessity be the

theater on which an enemy will aim to assail us, and unless we are

prepared to meet him on this element we can not be said to possess the

power requisite to repel or prevent aggressions. We can not, therefore,

watch with too much attention this arm of our defense, or cherish with

too much care the means by which it can possess the necessary

efficiency and extension. To this end our policy has been heretofore

wisely directed to the constant employment of a force sufficient to

guard our commerce, and to the rapid accumulation of the materials

which are necessary to repair our vessels and construct with ease such

new ones as may be required in a state of war.

In accordance with this policy, I recommend to your consideration the

erection of the additional dry dock described by the Secretary of the

Navy, and also the construction of the steam batteries to which he has

referred, for the purpose of testing their efficacy as auxiliaries to

the system of defense now in use.

The report of the Post Master General herewith submitted exhibits the

condition and prospects of that Department. From that document it

appears that there was a deficit in the funds of the Department at the

commencement of the present year beyond its available means of

$315,599.98, which on the first of July last had been reduced to

$268,092.74. It appears also that the revenues for the coming year will

exceed the expenditures about $270,000, which, with the excess of

revenue which will result from the operations of the current half year,

may be expected, independently of any increase in the gross amount of

postages, to supply the entire deficit before the end of 1835. But as

this calculation is based on the gross amount of postages which had

accrued within the period embraced by the times of striking the

balances, it is obvious that without a progressive increase in the

amount of postages the existing retrenchments must be persevered in

through the year 1836 that the Department may accumulate a surplus fund

sufficient to place it in a condition of perfect ease.

It will be observed that the revenues of the Post Office Department,

though they have increased, and their amount is above that of any

former year, have yet fallen short of the estimates more than $100,000.

This is attributed in a great degree to the increase of free letters

growing out of the extension and abuse of the franking privilege. There

has been a gradual increase in the number of executive offices to which

it has been granted, and by an act passed in March, 1833, it was

extended to members of Congress throughout the whole year. It is

believed that a revision of the laws relative to the franking

privilege, with some enactments to enforce more rigidly the

restrictions under which it is granted, would operate beneficially to

the country, by enabling the Department at an earlier period to restore

the mail facilities that have been withdrawn, and to extend them more

widely, as the growing settlements of the country may require.

To a measure so important to the Government and so just to our

constituents, who ask no exclusive privileges for themselves and are

not willing to concede them to others, I earnestly recommend the

serious attention of Congress.

The importance of the Post Office Department and the magnitude to which

it has grown, both in its revenues and in its operations, seem to

demand its reorganization by law. The whole of its receipts and

disbursements have hitherto been left entirely to Executive control and

individual discretion. The principle is as sound in relation to this as

to any other Department of the Government, that as little discretion

should be confided to the executive officer who controls it as is

compatible with its efficiency. It is therefore earnestly recommended

that it be organized with an auditor and treasurer of its own,

appointed by the President and Senate, who shall be branches of the

Treasury Department.

Your attention is again respectfully invited to the defect which exists

in the judicial system of the United States. Nothing can be more

desirable than the uniform operation of the Federal judiciary

throughout the several States, all of which, standing on the same

footing as members of the Union, have equal rights to the advantages

and benefits resulting from its laws. This object is not attained by

the judicial acts now in force, because they leave one quarter of the

States without circuit courts.

It is undoubtedly the duty of Congress to place all the States on the

same footing in this respect, either by the creation of an additional

number of associate judges or by an enlargement of the circuits

assigned to those already appointed so as to include the new States.

What ever may be the difficulty in a proper organization of the

judicial system so as to secure its efficiency and uniformity in all

parts of the Union and at the same time to avoid such an increase of

judges as would encumber the supreme appellate tribunal, it should not

be allowed to weigh against the great injustice which the present

operation of the system produces.

I trust that I may be also pardoned for renewing the recommendation I

have so often submitted to your attention in regard to the mode of

electing the President and Vice President of the United States. All the

reflection I have been able to bestow upon the subject increases my

conviction that the best interests of the country will be promoted by

the adoption of some plan which will secure in all contingencies that

important right of sovereignty to the direct control of the people.

Could this be attained, and the terms of those officers be limited to a

single period of either four or six years, I think our liberties would

possess an additional safeguard.

At your last session I called the attention of Congress to the

destruction of the public building occupied by the Treasury Department.

As the public interest requires that another building should be erected

with as little delay as possible, it is hoped that the means will be

seasonably provided and that they will be ample enough to authorize

such an enlargement and improvement in the plan of the building as will

more effectually accommodate the public officers and secure the public

documents deposited in it from the casualties of fire.

I have not been able to satisfy myself that the bill entitled "An act

to improve the navigation of the Wabash River", which was sent to me at

the close of your last session, ought to pass, and I have therefore

withheld from it my approval and now return it to the Senate, the body

in which it originated.

There can be no question connected with the administration of public

affairs more important or more difficult to be satisfactorily dealt

with than that which relates to the rightful authority and proper

action of the Federal Government upon the subject of internal

improvements. To inherent embarrassments have been added others

resulting from the course of our legislation concerning it.

I have heretofore communicated freely with Congress upon this subject,

and in adverting to it again I can not refrain from expressing my

increased conviction of its extreme importance as well in regard to its

bearing upon the maintenance of the Constitution and the prudent

management of the public revenue as on account of its disturbing effect

upon the harmony of the Union.

We are in no danger from violations of the Constitution by which

encroachments are made upon the personal rights of the citizen. The

sentence of condemnation long since pronounced by the American people

upon acts of that character will, I doubt not, continue to prove as

salutary in its effects as it is irreversible in its nature.

But against the dangers of unconstitutional acts which, instead of

menacing the vengeance of offended authority, proffer local advantages

and bring in their train the patronage of the Government, we are, I

fear, not so safe. To suppose that because our Government has been

instituted for the benefit of the people it must therefore have the

power to do what ever may seem to conduce to the public good is an

error into which even honest minds are too apt to fall. In yielding

themselves to this fallacy they overlook the great considerations in

which the Federal Constitution was founded. They forget that in

consequence of the conceded diversities in the interest and condition

of the different States it was foreseen at the period of its adoption

that although a particular measure of the Government might be

beneficial and proper in one State it might be the reverse in another;

that it was for this reason the States would not consent to make a

grant to the Federal Government of the general and usual powers of

government, but of such only as were specifically enumerated, and the

probable effects of which they could, as they thought, safely

anticipate; and they forget also the paramount obligation upon all to

abide by the compact then so solemnly and, as it was hoped, so firmly

established.

In addition to the dangers to the Constitution springing from the

sources I have stated, there has been one which was perhaps greater

than all. I allude to the materials which this subject has afforded for

sinister appeals to selfish feelings, and the opinion heretofore so

extensively entertained of its adaptation to the purposes of personal

ambition. With such stimulus it is not surprising that the acts and

pretensions of the Federal Government in this behalf should some times

have been carried to an alarming extent. The questions which have

arisen upon this subject have related--To the power of making internal

improvements within the limits of a State, with the right of

territorial jurisdiction, sufficient at least for their preservation

and use. To the right of appropriating money in aid of such works when

carried on by a State of by a company in virtue of State authority,

surrendering the claim of jurisdiction; and To the propriety of

appropriation for improvements of a particular class, viz, for light

houses, beacons, buoys, public piers, and for the removal of sand bars,

sawyers, and other temporary and partial impediments in our navigable

rivers and harbors. The claims of power for the General Government upon

each of these points certainly present matter of the deepest interest.

The first is, however, of much the greatest importance, in as much as,

in addition to the dangers of unequal and improvident expenditures of

public moneys common to all, there is super-added to that the

conflicting jurisdictions of the respective governments. Federal

jurisdiction, at least to the extent I have stated, has been justly

regarded by its advocates as necessarily appurtenant to the power in

question, if that exists by the Constitution.

That the most injurious conflicts would unavoidably arise between the

respective jurisdictions of the State and Federal Governments in the

absence of a constitutional provision marking out their respective

boundaries can not be doubted. The local advantages to be obtained

would induce the States to overlook in the beginning the dangers and

difficulties to which they might ultimately be exposed. The powers

exercised by the Federal Government would soon be regarded with

jealousy by the State authorities, and originating as they must from

implication or assumption, it would be impossible to affix to them

certain and safe limits.

Opportunities and temptations to the assumption of power incompatible

with State sovereignty would be increased and those barriers which

resist the tendency of our system toward consolidation greatly

weakened. The officers and agents of the General Government might not

always have the discretion to abstain from intermeddling with State

concerns, and if they did they would not always escape the suspicion of

having done so. Collisions and consequent irritations would spring up;

that harmony which should ever exist between the General Government and

each member of the Confederacy would be frequently interrupted; a

spirit of contention would be engendered and the dangers of disunion

greatly multiplied.

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