respect to the effect of the removal of the deposits--a step
unquestionably necessary to prevent the evils which it was foreseen the
bank itself would endeavor to create in a final struggle to procure a
renewal of its charter. It may be thus, too, in some degree with the
further steps which may be taken to prevent the excessive issue of
other bank paper, but it is to be hoped that nothing will now deter the
Federal and State authorities from the firm and vigorous performance of
their duties to themselves and to the people in this respect.
In reducing the revenue to the wants of the Government your particular
attention is invited to those articles which constitute the necessaries
of life. The duty on salt was laid as a war tax, and was no doubt
continued to assist in providing for the payment of the war debt. There
is no article the release of which from taxation would be felt so
generally and so beneficially. To this may be added all kinds of fuel
and provisions. Justice and benevolence unite in favor of releasing the
poor of our cities from burdens which are not necessary to the support
of our Government and tend only to increase the wants of the destitute.
It will be seen by the report of the Secretary of the Treasury and the
accompanying documents that the Bank of the United States has made no
payment on account of the stock held by the Government in that
institution, although urged to pay any portion which might suit its
convenience, and that it has given no information when payment may be
expected. Nor, although repeatedly requested, has it furnished the
information in relation to its condition which Congress authorized the
Secretary to collect at their last session. Such measures as are within
the power of the Executive have been taken to ascertain the value of
the stock and procure the payment as early as possible.
The conduct and present condition of that bank and the great amount of
capital vested in it by the United States require your careful
attention. Its charter expired on the third day of March last, and it
has now no power but that given in the twenty-first section, "to use
the corporate name, style, and capacity for the purpose of suits for
the final settlement and liquidation of the affairs and accounts of the
corporation, and for the sale and disposition of their estate--real,
personal, and mixed--but not for any other purpose or in any other
manner what so ever, nor for a period exceeding two years after the
expiration of the said term of incorporation".
Before the expiration of the charter the stock-holders of the bank
obtained an act of incorporation from the legislature of Pennsylvania,
excluding only the United States. Instead of proceeding to wind up
their concerns and pay over to the United States the amount due on
account of the stock held by them, the president and directors of the
old bank appear to have transferred the books, papers, notes,
obligations, and most or all of its property to this new corporation,
which entered upon business as a continuation of the old concern.
Amongst other acts of questionable validity, the notes of the expired
corporation are known to have been used as its own and again put in
circulation. That the old bank had no right to issue or re-issue its
notes after the expiration of its charter can not be denied, and that
it could not confer any such right on its substitute any more than
exercise it itself is equally plain. In law and honesty the notes of
the bank in circulation at the expiration of its charter should have
been called in by public advertisement, paid up as presented, and,
together with those on hand, canceled and destroyed.
Their re-issue is sanctioned by no law and warranted by no necessity.
If the United States be responsible in their stock for the payment of
these notes, their re-issue by the new corporation for their own profit
is a fraud on the Government. If the United States is not responsible,
then there is no legal responsibility in any quarter, and it is a fraud
on the country. They are the redeemed notes of a dissolved partnership,
but, contrary to the wishes of the retiring partner and without his
consent, are again re-issued and circulated.
It is the high and peculiar duty of Congress to decide whether any
further legislation be necessary for the security of the large amount
of public property now held and in use by the new bank, and for
vindicating the rights of the Government and compelling a speedy and
honest settlement with all the creditors of the old bank, public and
private, or whether the subject shall be left to the power now
possessed by the Executive and judiciary. It remains to be seen whether
the persons who as managers of the old bank undertook to control the
Government, retained the public dividends, shut their doors upon a
committee of the House of Representatives, and filled the country with
panic to accomplish their own sinister objects may now as managers of a
new bank continue with impunity to flood the country with a spurious
currency, use the $7 millions of Government stock for their own profit,
and refuse to the United States all information as to the present
condition of their own property and the prospect of recovering it into
their own possession.
The lessons taught by the Bank of the United States can not well be
lost upon the American people. They will take care never again to place
so tremendous a power in irresponsible hands, and it will be fortunate
if they seriously consider the consequences which are likely to result
on a smaller scale from the facility with which corporate powers are
granted by their State governments.
It is believed that the law of the last session regulating the deposit
banks operates onerously and unjustly upon them in many respects, and
it is hoped that Congress, on proper representations, will adopt the
modifications which are necessary to prevent this consequence.
The report of the Secretary of War ad interim and the accompanying
documents, all which are herewith laid before you, will give you a full
view of the diversified and important operations of that Department
during the past year.
The military movements rendered necessary by the aggressions of the
hostile portions of the Seminole and Creek tribes of Indians, and by
other circumstances, have required the active employment of nearly our
whole regular force, including the Marine Corps, and of large bodies of
militia and volunteers. With all these events so far as they were known
at the seat of Government before the termination of your last session
you are already acquainted, and it is therefore only needful in this
place to lay before you a brief summary of what has since occurred.
The war with the Seminoles during the summer was on our part chiefly
confined to the protection of our frontier settlements from the
incursions of the enemy, and, as a necessary and important means for
the accomplishment of that end, to the maintenance of the posts
previously established. In the course of this duty several actions took
place, in which the bravery and discipline of both officers and men
were conspicuously displayed, and which I have deemed it proper to
notice in respect to the former by the granting of brevet rank for
gallant services in the field. But as the force of the Indians was not
so far weakened by these partial successes as to lead them to submit,
and as their savage inroads were frequently repeated, early measures
were taken for placing at the disposal of Governor Call, who as
commander in chief of the Territorial militia had been temporarily
invested with the command, an ample force for the purpose of resuming
offensive operations in the most efficient manner so soon as the season
should permit. Major General Jesup was also directed, on the conclusion
of his duties in the Creek country, to repair to Florida and assume the
command.
The result of the first movement made by the forces under the direction
of Governor Call in October last, as detailed in the accompanying
papers, excited much surprise and disappointment. A full explanation
has been required of the causes which led to the failure of that
movement, but has not yet been received. In the mean time, as it was
feared that the health of Governor Call, who was understood to have
suffered much from sickness, might not be adequate to the crisis, and
as Major General Jesup was known to have reached Florida, that officer
was directed to assume command, and to prosecute all needful operations
with the utmost promptitude and vigor. From the force at his disposal
and the dispositions he has made and is instructed to make, and from
the very efficient measures which it is since ascertained have been
taken by Governor Call, there is reason to hope that they will soon be
enabled to reduce the enemy to subjection. In the mean time, as you
will perceive from the report of the Secretary, there is urgent
necessity for further appropriations to suppress these hostilities.
Happily for the interests of humanity, the hostilities with the Creeks
were brought to a close soon after your adjournment, without that
effusion of blood which at one time was apprehended as inevitable. The
unconditional submission of the hostile party was followed by their
speedy removal to the country assigned them West of the Mississippi.
The inquiry as to alleged frauds in the purchase of the reservations of
these Indians and the causes of their hostilities, requested by the
resolution of the House of Representatives of the first of July last
July 1st, 1836 to be made by the President, is now going on through the
agency of commissioners appointed for that purpose. Their report may be
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 measures taken by the War
Department, and still continued.
The discretionary authority given to General Gaines to cross the Sabine
and to occupy a position as far West as Nacogdoches, in case he should
deem such a step necessary to the protection of the frontier and to the
fulfillment of the stipulations contained in our treaty with Mexico,
and the movement subsequently made by that officer have been alluded to
in a former part of this message. At the date of the latest
intelligence from Nacogdoches our troops were yet at that station, but
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 the discretionary powers before possessed by him, to
give the requisite orders for that purpose on the receipt of the
instructions, unless he shall then have in his possession such
information as shall satisfy him that the maintenance of the post is
essential to the protection of our frontiers and to the due execution
of our treaty stipulations, as previously explained to him.
Whilst the necessities existing during the present year for the service
of militia and volunteers have furnished new proofs of the patriotism
of our fellow citizens, they have also strongly illustrated the
importance of an increase in the rank and file of the Regular Army. The
views of this subject submitted by the Secretary of War in his report
meet my entire concurrence, and are earnestly commended to the
deliberate attention of Congress. In this connection it is also proper
to remind you that the defects in our present militia system are every
day rendered more apparent. The duty of making further provision by law
for organizing, arming, and disciplining this arm of defense has been
so repeatedly presented to Congress by myself and my predecessors that
I deem it sufficient on this occasion to refer to the last annual
message and to former Executive communications in which the subject has
been discussed.
It appears from the reports of the officers charged with mustering into
service the volunteers called for under the act of Congress of the last
session that 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 was
occasioned by the omission of the governor to apportion the requisition
to the different regiments of militia so as to obtain the proper number
of troops and no more. It seems but just to the patriotic citizens who
repaired to the general rendezvous under circumstances authorizing them
to believe that their services were needed and would be accepted that
the expenses incurred by them while absent from their homes should be
paid by the Government. I accordingly recommend that a law to this
effect be passed by Congress, giving them a compensation which will
cover their expenses on the march to and from the place of rendezvous
and while there; in connection with which it will also be proper to
make provision for such other equitable claims growing out of the
service of the militia as may not be embraced in the existing laws.
On the unexpected breaking out of hostilities in Florida, Alabama, and
Georgia it became necessary in some cases to take the property of
individuals for public use. Provision should be made by law for
indemnifying the owners; and I 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 of our own troops.
No time was lost after the making of the requisite appropriations in
resuming the great national work of completing the unfinished
fortifications on our sea-board and of placing them in a proper state
of defense. In consequence, however, of the very late day at which
those bills were passed, but little progress could be made during the
season which has just closed. A very large amount of the moneys granted
at your last session accordingly remains unexpended; but as the work
will be again resumed at the earliest moment in the coming spring, the
balance of the existing appropriations, and in several cases which will
be laid before you, with the proper estimates, further sums for the
like objects, may be usefully expended during the next year.
The recommendations of an increase in the Engineer Corps and for a
reorganization of the Topographical Corps, submitted to you in my last
annual message, derive additional strength from the great
embarrassments experienced during the present year in those branches of
the service, and under which they are now suffering. Several of the
most important surveys and constructions directed by recent laws have
been suspended in consequence of the want of adequate force in these
corps.
The like observations may be applied to the Ordnance Corps and to the
general staff, the operations of which as they are now organized must
either be frequently interrupted or performed by officers taken from
the line of the Army, to the great prejudice of the service.
For a general view of the condition of the Military Academy and of
other branches of the military service not already noticed, as well as
for further illustrations of those which have been mentioned, I refer
you to the accompanying documents, and among the various proposals
contained therein for legislative action I would particularly notice
the suggestion of the Secretary of War for the revision of the pay of
the Army as entitled to your favorable regard.
The national policy, founded alike in interest and in humanity, so long
and so steadily pursued by this Government for the removal of the
Indian tribes originally settled on this side of the Mississippi to the
W of that river, may be said to have been consummated by the conclusion
of the late treaty with the Cherokees. The measures taken in the
execution of that treaty and in relation to our Indian affairs
generally will fully appear by referring to the accompanying papers.
Without dwelling on the numerous and important topics embraced in them,
I again invite your attention to the importance of providing a
well-digested and comprehensive system for the protection, supervision,
and improvement of the various tribes now planted in the Indian
country.
The suggestions submitted by the Commissioner of Indian Affairs, and
enforced by the Secretary, on this subject, and also in regard to the
establishment of additional military posts in the Indian country, are
entitled to your profound consideration. Both measures are necessary,
for the double purpose of protecting the Indians from intestine war,
and in other respects complying with our engagements with them, and of
securing our western frontier against incursions which otherwise will
assuredly be made on it. The best hopes of humanity in regard to the
aboriginal race, the welfare of our rapidly extending settlements, and
the honor of the United States are all deeply involved in the relations
existing between this Government and the emigrating tribes. I trust,
therefore, that the various matters submitted in the accompanying
documents in respect to those relations will receive your early and
mature deliberation, and that it may issue in the adoption of
legislative measures adapted to the circumstances and duties of the
present crisis.
You are referred to the report of the Secretary of the Navy for a
satisfactory view of the operations of the Department under his charge
during the present year. In the construction of vessels at the
different navy yards and in the employment of our ships and squadrons
at sea that branch of the service has been actively and usefully
employed. While the situation of our commercial interests in the West
Indies required a greater number than usual of armed vessels to be kept
on that station, it is gratifying to perceive that the protection due
to our commerce in other quarters of the world has not proved
insufficient. Every effort has been made to facilitate the equipment of
the exploring expedition authorized by the act of the last session, but
all the preparation necessary to enable it to sail has not yet been
completed. No means will be spared by the Government to fit out the
expedition on a scale corresponding with the liberal appropriations for
the purpose and with the elevated character of the objects which are to
be effected by it.
I beg leave to renew the recommendation made in my last annual message
respecting the enlistment of boys in our naval service, and to urge
upon your attention the necessity of further appropriations to increase
the number of ships afloat and to enlarge generally the capacity and
force of the Navy. The increase of our commerce and our position in
regard to the other powers of the world will always make it our policy
and interest to cherish the great naval resources of our country.
The report of the Post Master General presents a gratifying picture of
the condition of the Post Office Department. Its revenues for the year
ending the 30th June last were $3,398,455.19, showing an increase of
revenue over that of the preceding year of $404,878.53, or more than
13%. The expenditures for the same year were $2,755,623.76, exhibiting
a surplus of $642,831.43. The Department has been redeemed from
embarrassment and debt, has accumulated a surplus exceeding half a
million dollars, has largely extended and is preparing still further to
extend the mail service, and recommends a reduction of postages equal
to about 20%. It is practicing upon the great principle which should
control every branch of our Government of rendering to the public the
greatest good possible with the least possible taxation to the people.
The scale of postages suggested by the Post Master General recommends
itself, not only by the reduction it proposes, but by the simplicity of
its arrangement, its conformity with the Federal currency, and the
improvement it will introduce into the accounts of the Department and
its agents.
Your particular attention is invited to the subject of mail contracts
with railroad companies. The present laws providing for the making of
contracts are based upon the presumption that competition among bidders
will secure the service at a fair price; but on most of the railroad
lines there is no competition in that kind of transportation, and
advertising is therefore useless. No contract can now be made with them
except such as shall be negotiated before the time of offering or
afterwards, and the power of the Post Master General to pay them high
prices is practically without limitation. It would be a relief to him
and no doubt would conduce to the public interest to prescribe by law
some equitable basis upon which such contracts shall rest, and restrict
him by a fixed rule of allowance. Under a liberal act of that sort he
would undoubtedly be able to secure the services of most of the
railroad companies, and the interest of the Department would be thus
advanced.
The correspondence between the people of the United States and the
European nations, and particularly with the British Islands, has become
very extensive, and requires the interposition of Congress to give it
security. No obstacle is perceived to an interchange of mails between
New York and Liverpool or other foreign ports, as proposed by the Post
Master General. On the contrary, it promises, by the security it will
afford, to facilitate commercial transactions and give rise to an
enlarged intercourse among the people of different nations, which can
not but have a happy effect. Through the city of New York most of the
correspondence between the Canadas and Europe is now carried on, and
urgent representations have been received from the head of the
provincial post office asking the interposition of the United States to
guard it from the accidents and losses to which it is now subjected.
Some legislation appears to be called for as well by our own interest
as by comity to the adjoining British provinces.
The expediency of providing a fire-proof building for the important
books and papers of the Post Office Department is worthy of
consideration. In the present condition of our Treasury it is neither
necessary nor wise to leave essential public interests exposed to so
much danger when they can so readily be made secure. There are weighty
considerations in the location of a new building for that Department in
favor of placing it near the other executive buildings.
The important subjects of a survey of the coast and the manufacture of
a standard of weights and measures for the different custom houses have
been in progress for some years under the general direction of the
Executive and the immediate superintendence of a gentleman possessing
high scientific attainments. At the last session of Congress the making
of a set of weights and measures for each State in the Union was added
to the others by a joint resolution.
The care and correspondence as to all these subjects have been devolved
on the Treasury Department during the last year. A special report from
the Secretary of the Treasury will soon be communicated to Congress,
which will show what has been accomplished as to the whole, the number
and compensation of the persons now employed in these duties, and the
progress expected to be made during the ensuing year, with a copy of
the various correspondence deemed necessary to throw light on the
subjects which seem to require additional legislation.
Claims have been made for retrospective allowances in behalf of the
superintendent and some of his assistants, which I did not feel
justified in granting. Other claims have been made for large increases
in compensation, which, under the circumstances of the several cases, I
declined making without the express sanction of Congress. In order to
obtain that sanction the subject was at the last session, on my
suggestion and by request of the immediate superintendent, submitted by
the Treasury Department to the Committee on Commerce of the House of
Representatives. But no legislative action having taken place, the
early attention of Congress is now invited to the enactment of some
express and detailed provisions in relation to the various claims made
for the past, and to the compensation and allowances deemed proper for
the future.