WASHINGTON, _December 5, 1837_.
_Fellow-Citizens of the Senate and House of Representatives_:
We have reason to renew the expression of our devout gratitude to the
Giver of All Good for His benign protection. Our country presents on
every side the evidences of that continued favor under whose auspices
it has gradually risen from a few feeble and dependent colonies to a
prosperous and powerful confederacy. We are blessed with domestic
tranquillity and all the elements of national prosperity. The pestilence
which, invading for a time some flourishing portions of the Union,
interrupted the general prevalence of unusual health has happily been
limited in extent and arrested in its fatal career. The industry and
prudence of our citizens are gradually relieving them from the pecuniary
embarrassments under which portions of them have labored; judicious
legislation and the natural and boundless resources of the country have
afforded wise and timely aid to private enterprise, and the activity
always characteristic of our people has already in a great degree
resumed its usual and profitable channels.
The condition of our foreign relations has not materially changed since
the last annual message of my predecessor. We remain at peace with all
nations, and no efforts on my part consistent with the preservation of
our rights and the honor of the country shall be spared to maintain a
position so consonant to our institutions. We have faithfully sustained
the foreign policy with which the United States, under the guidance of
their first President, took their stand in the family of nations--that
of regulating their intercourse with other powers by the approved
principles of private life; asking and according equal rights and equal
privileges; rendering and demanding justice in all cases; advancing
their own and discussing the pretensions of others with candor,
directness, and sincerity; appealing at all times to reason, but never
yielding to force nor seeking to acquire anything for themselves by
its exercise.
A rigid adherence to this policy has left this Government with scarcely
a claim upon its justice for injuries arising from acts committed by
its authority. The most imposing and perplexing of those of the United
States upon foreign governments for aggressions upon our citizens were
disposed of by my predecessor. Independently of the benefits conferred
upon our citizens by restoring to the mercantile community so many
millions of which they had been wrongfully divested, a great service
was also rendered to his country by the satisfactory adjustment of so
many ancient and irritating subjects of contention; and it reflects no
ordinary credit on his successful administration of public affairs that
this great object was accomplished without compromising on any occasion
either the honor or the peace of the nation.
With European powers no new subjects of difficulty have arisen, and
those which were under discussion, although not terminated, do not
present a more unfavorable aspect for the future preservation of that
good understanding which it has ever been our desire to cultivate.
Of pending questions the most important is that which exists with the
Government of Great Britain in respect to our northeastern boundary. It
is with unfeigned regret that the people of the United States must look
back upon the abortive efforts made by the Executive, for a period of
more than half a century, to determine what no nation should suffer long
to remain in dispute--the true line which divides its possessions from
those of other powers. The nature of the settlements on the borders of
the United States and of the neighboring territory was for a season such
that this, perhaps, was not indispensable to a faithful performance of
the duties of the Federal Government. Time has, however, changed this
state of things, and has brought about a condition of affairs in which
the true interests of both countries imperatively require that this
question should be put at rest. It is not to be disguised that, with
full confidence, often expressed, in the desire of the British
Government to terminate it, we are apparently as far from its adjustment
as we were at the time of signing the treaty of peace in 1783. The sole
result of long-pending negotiations and a perplexing arbitration appears
to be a conviction on its part that a conventional line must be adopted,
from the impossibility of ascertaining the true one according to the
description contained in that treaty. Without coinciding in this
opinion, which is not thought to be well founded, my predecessor gave
the strongest proof of the earnest desire of the United States to
terminate satisfactorily this dispute by proposing the substitution
of a conventional line if the consent of the States interested in the
question could be obtained. To this proposition no answer has as yet
been received. The attention of the British Government has, however,
been urgently invited to the subject, and its reply can not, I am
confident, be much longer delayed. The general relations between Great
Britain and the United States are of the most friendly character, and
I am well satisfied of the sincere disposition of that Government to
maintain them upon their present footing. This disposition has also,
I am persuaded, become more general with the people of England than
at any previous period. It is scarcely necessary to say to you how
cordially it is reciprocated by the Government and people of the United
States. The conviction, which must be common to all, of the injurious
consequences that result from keeping open this irritating question, and
the certainty that its final settlement can not be much longer deferred,
will, I trust, lead to an early and satisfactory adjustment. At your
last session I laid before you the recent communications between the two
Governments and between this Government and that of the State of Maine,
in whose solicitude concerning a subject in which she has so deep an
interest every portion of the Union participates.
The feelings produced by a temporary interruption of those harmonious
relations between France and the United States which are due as well
to the recollections of former times as to a correct appreciation of
existing interests have been happily succeeded by a cordial disposition
on both sides to cultivate an active friendship in their future
intercourse. The opinion, undoubtedly correct, and steadily entertained
by us, that the commercial relations at present existing between the
two countries are susceptible of great and reciprocally beneficial
improvements is obviously gaining ground in France, and I am assured
of the disposition of that Government to favor the accomplishment of
such an object. This disposition shall be met in a proper spirit on our
part. The few and comparatively unimportant questions that remain to
be adjusted between us can, I have no doubt, be settled with entire
satisfaction and without difficulty.
Between Russia and the United States sentiments of good will continue to
be mutually cherished. Our minister recently accredited to that Court
has been received with a frankness and cordiality and with evidences of
respect for his country which leave us no room to doubt the preservation
in future of those amicable and liberal relations which have so long
and so uninterruptedly existed between the two countries. On the few
subjects under discussion between us an early and just decision is
confidently anticipated.
A correspondence has been opened with the Government of Austria for the
establishment of diplomatic relations, in conformity with the wishes of
Congress as indicated by an appropriation act of the session of 1837,
and arrangements made for the purpose, which will be duly carried
into effect.
With Austria and Prussia and with the States of the German Empire (now
composing with the latter the Commercial League) our political relations
are of the most friendly character, whilst our commercial intercourse is
gradually extending, with benefit to all who are engaged in it.
Civil war yet rages in Spain, producing intense suffering to its own
people, and to other nations inconvenience and regret. Our citizens
who have claims upon that country will be prejudiced for a time by the
condition of its treasury, the inevitable consequence of long-continued
and exhausting internal wars. The last installment of the interest of
the debt due under the convention with the Queen of Spain has not been
paid and similar failures may be expected to happen until a portion of
the resources of her Kingdom can be devoted to the extinguishment of
its foreign debt.
Having received satisfactory evidence that discriminating tonnage
duties were charged upon the vessels of the United States in the ports
of Portugal, a proclamation was issued on the 11th day of October last,
in compliance with the act of May 25, 1832, declaring that fact, and the
duties on foreign tonnage which were levied upon Portuguese vessels in
the United States previously to the passage of that act are accordingly
revived.
The act of July 4, 1836, suspending the discriminating duties upon
the produce of Portugal imported into this country in Portuguese
vessels, was passed, upon the application of that Government through its
representative here, under the belief that no similar discrimination
existed in Portugal to the prejudice of the United States. I regret to
state that such duties are now exacted in that country upon the cargoes
of American vessels, and as the act referred to vests no discretion in
the Executive, it is for Congress to determine upon the expediency of
further legislation on the subject. Against these discriminations
affecting the vessels of this country and their cargoes seasonable
remonstrance was made, and notice was given to the Portuguese Government
that unless they should be discontinued the adoption of countervailing
measures on the part of the United States would become necessary; but
the reply of that Government, received at the Department of State
through our chargé d'affaires at Lisbon in the month of September last,
afforded no ground to hope for the abandonment of a system so little in
harmony with the treatment shown to the vessels of Portugal and their
cargoes in the ports of this country and so contrary to the expectations
we had a right to entertain.
With Holland, Sweden, Denmark, Naples, and Belgium a friendly
intercourse has been uninterruptedly maintained.
With the Government of the Ottoman Porte and its dependencies on the
coast of the Mediterranean peace and good will are carefully cultivated,
and have been fostered by such good offices as the relative distance and
the condition of those countries would permit.
Our commerce with Greece is carried on under the laws of the two
Governments, reciprocally beneficial to the navigating interests of
both; and I have reason to look forward to the adoption of other
measures which will be more extensively and permanently advantageous.
Copies of the treaties concluded with the Governments of Siam and Muscat
are transmitted for the information of Congress, the ratifications
having been received and the treaties made public since the close of the
last annual session. Already have we reason to congratulate ourselves on
the prospect of considerable commercial benefit; and we have, besides,
received from the Sultan of Muscat prompt evidence of his desire to
cultivate the most friendly feelings, by liberal acts toward one of
our vessels, bestowed in a manner so striking as to require on our part
a grateful acknowledgment.
Our commerce with the islands of Cuba and Porto Rico still labors under
heavy restrictions, the continuance of which is a subject of regret. The
only effect of an adherence to them will be to benefit the navigation of
other countries at the expense of both the United States and Spain.
The independent nations of this continent have ever since they
emerged from the colonial state experienced severe trials in their
progress to the permanent establishment of liberal political
institutions. Their unsettled condition not only interrupts their own
advances to prosperity, but has often seriously injured the other powers
of the world. The claims of our citizens upon Peru, Chili, Brazil, the
Argentine Republic, the Governments formed out of the Republics of
Colombia and Mexico, are still pending, although many of them have
been presented for examination more than twenty years. New Granada,
Venezuela, and Ecuador have recently formed a convention for the purpose
of ascertaining and adjusting claims upon the Republic of Colombia,
from which it is earnestly hoped our citizens will ere long receive
full compensation for the injuries inflicted upon them and for the delay
in affording it.
An advantageous treaty of commerce has been concluded by the
United States with the Peru-Bolivian Confederation, which wants only
the ratification of that Government. The progress of a subsequent
negotiation for the settlement of claims upon Peru has been unfavorably
affected by the war between that power and Chili and the Argentine
Republic, and the same event is also likely to produce delays in the
settlement of our demands on those powers.
The aggravating circumstances connected with our claims upon Mexico and
a variety of events touching the honor and integrity of our Government
led my predecessor to make at the second session of the last Congress a
special recommendation of the course to be pursued to obtain a speedy
and final satisfaction of the injuries complained of by this Government
and by our citizens. He recommended a final demand of redress, with a
contingent authority to the Executive to make reprisals if that demand
should be made in vain. From the proceedings of Congress on that
recommendation it appeared that the opinion of both branches of the
Legislature coincided with that of the Executive, that any mode of
redress known to the law of nations might justifiably be used. It was
obvious, too, that Congress believed with the President that another
demand should be made, in order to give undeniable and satisfactory
proof of our desire to avoid extremities with a neighboring power, but
that there was an indisposition to vest a discretionary authority in
the Executive to take redress should it unfortunately be either denied
or unreasonably delayed by the Mexican Government.
So soon as the necessary documents were prepared, after entering upon
the duties of my office, a special messenger was sent to Mexico to make
a final demand of redress, with the documents required by the provisions
of our treaty. The demand was made on the 20th of July last. The reply,
which bears date the 29th of the same month, contains assurances of a
desire on the part of that Government to give a prompt and explicit
answer respecting each of the complaints, but that the examination of
them would necessarily be deliberate; that in this examination it
would be guided by the principles of public law and the obligation
of treaties; that nothing should be left undone that might lead to
the most speedy and equitable adjustment of our demands, and that its
determination in respect to each case should be communicated through
the Mexican minister here.
Since that time an envoy extraordinary and minister plenipotentiary
has been accredited to this Government by that of the Mexican Republic.
He brought with him assurances of a sincere desire that the pending
differences between the two Governments should be terminated in
a manner satisfactory to both. He was received with reciprocal
assurances, and a hope was entertained that his mission would lead
to a speedy, satisfactory, and final adjustment of all existing subjects
of complaint. A sincere believer in the wisdom of the pacific policy by
which the United States have always been governed in their intercourse
with foreign nations, it was my particular desire, from the proximity
of the Mexican Republic and well-known occurrences on our frontier,
to be instrumental in obviating all existing difficulties with that
Government and in restoring to the intercourse between the two Republics
that liberal and friendly character by which they should always be
distinguished. I regret, therefore, the more deeply to have found in the
recent communications of that Government so little reason to hope that
any future efforts of mine for the accomplishment of those desirable
objects would be successful.
Although the larger number--and many of them aggravated cases of
personal wrongs--have been now for years before the Mexican Government,
and some of the causes of national complaint, and those of the most
offensive character, admitted of immediate, simple, and satisfactory
replies, it is only within a few days past that any specific
communication in answer to our last demand, made five months ago, has
been received from the Mexican minister. By the report of the Secretary
of State herewith presented and the accompanying documents it will be
seen that for not one of our public complaints has satisfaction been
given or offered, that but one of the cases of personal wrong has been
favorably considered, and that but four cases of both descriptions out
of all those formally presented and earnestly pressed have as yet been
decided upon by the Mexican Government.
Not perceiving in what manner any of the powers given to the Executive
alone could be further usefully employed in bringing this unfortunate
controversy to a satisfactory termination, the subject was by my
predecessor referred to Congress as one calling for its interposition.
In accordance with the clearly understood wishes of the Legislature,
another and formal demand for satisfaction has been made upon the
Mexican Government, with what success the documents now communicated
will show. On a careful and deliberate examination of their contents,
and considering the spirit manifested by the Mexican Government, it
has become my painful duty to return the subject as it now stands to
Congress, to whom it belongs to decide upon the time, the mode, and
the measure of redress. Whatever may be your decision, it shall be
faithfully executed, confident that it will be characterized by that
moderation and justice which will, I trust, under all circumstances
govern the councils of our country.
The balance in the Treasury on the 1st January, 1837, was $45,968,523.
The receipts during the present year from all sources, including
the amount of Treasury notes issued, are estimated at $23,499,981,
constituting an aggregate of $69,468,504. Of this amount about
$35,281,361 will have been expended at the end of the year on
appropriations made by Congress, and the residue, amounting to
$34,187,143, will be the nominal balance in the Treasury on the
1st of January next; but of that sum only $1,085,498 is considered as
immediately available for and applicable to public purposes. Those
portions of it which will be for some time unavailable consist chiefly
of sums deposited with the States and due from the former deposit banks.
The details upon this subject will be found in the annual report of the
Secretary of the Treasury. The amount of Treasury notes which it will be
necessary to issue during the year on account of those funds being
unavailable will, it is supposed, not exceed four and a half millions.
It seemed proper, in the condition of the country, to have the estimates
on all subjects made as low as practicable without prejudice to any
great public measures. The Departments were therefore desired to prepare
their estimates accordingly, and I am happy to find that they have been
able to graduate them on so economical a scale. In the great and often
unexpected fluctuations to which the revenue is subjected it is not
possible to compute the receipts beforehand with great certainty,
but should they not differ essentially from present anticipations,
and should the appropriations not much exceed the estimates, no
difficulty seems likely to happen in defraying the current expenses
with promptitude and fidelity.
Notwithstanding the great embarrassments which have recently
occurred in commercial affairs, and the liberal indulgence which in
consequence of these embarrassments has been extended to both the
merchants and the banks, it is gratifying to be able to anticipate that
the Treasury notes which have been issued during the present year will
be redeemed and that the resources of the Treasury, without any resort
to loans or increased taxes, will prove ample for defraying all charges
imposed on it during 1838.
The report of the Secretary of the Treasury will afford you a more
minute exposition of all matters connected with the administration of
the finances during the current year--a period which for the amount of
public moneys disbursed and deposited with the States, as well as the
financial difficulties encountered and overcome, has few parallels in
our history.
Your attention was at the last session invited to the necessity of
additional legislative provisions in respect to the collection,
safe-keeping, and transfer of the public money. No law having been then
matured, and not understanding the proceedings of Congress as intended
to be final, it becomes my duty again to bring the subject to your
notice.
On that occasion three modes of performing this branch of the public
service were presented for consideration. These were, the creation of
a national bank; the revival, with modifications, of the deposit system
established by the act of the 23d of June, 1836, permitting the use
of the public moneys by the banks; and the discontinuance of the use of
such institutions for the purposes referred to, with suitable provisions
for their accomplishment through the agency of public officers.
Considering the opinions of both Houses of Congress on the first two
propositions as expressed in the negative, in which I entirely concur,
it is unnecessary for me again to recur to them. In respect to the last,
you have had an opportunity since your adjournment not only to test
still further the expediency of the measure by the continued practical
operation of such parts of it as are now in force, but also to discover
what should ever be sought for and regarded with the utmost
deference--the opinions and wishes of the people.
The national will is the supreme law of the Republic, and on all
subjects within the limits of his constitutional powers should be
faithfully obeyed by the public servant. Since the measure in question
was submitted to your consideration most of you have enjoyed the
advantage of personal communication with your constituents. For one
State only has an election been held for the Federal Government;
but the early day at which it took place deprived the measure under
consideration of much of the support it might otherwise have derived
from the result. Local elections for State officers have, however,
been held in several of the States, at which the expediency of the plan
proposed by the Executive has been more or less discussed. You will,
I am confident, yield to their results the respect due to every
expression of the public voice. Desiring, however, to arrive at truth
and a just view of the subject in all its bearings, you will at the same
time remember that questions of far deeper and more immediate local
interest than the fiscal plans of the National Treasury were involved in
those elections. Above all, we can not overlook the striking fact that
there were at the time in those States more than one hundred and sixty
millions of bank capital, of which large portions were subject to actual
forfeiture, other large portions upheld only by special and limited
legislative indulgences, and most of it, if not all, to a greater or
less extent dependent for a continuance of its corporate existence upon
the will of the State legislatures to be then chosen. Apprised of this
circumstance, you will judge whether it is not most probable that the
peculiar condition of that vast interest in these respects, the extent
to which it has been spread through all the ramifications of society,
its direct connection with the then pending elections, and the feelings
it was calculated to infuse into the canvass have exercised a far
greater influence over the result than any which could possibly have
been produced by a conflict of opinion in respect to a question in the
administration of the General Government more remote and far less
important in its bearings upon that interest.
I have found no reason to change my own opinion as to the expediency
of adopting the system proposed, being perfectly satisfied that there
will be neither stability nor safety either in the fiscal affairs
of the Government or in the pecuniary transactions of individuals and
corporations so long as a connection exists between them which, like
the past, offers such strong inducements to make them the subjects
of political agitation. Indeed, I am more than ever convinced of
the dangers to which the free and unbiased exercise of political
opinion--the only sure foundation and safeguard of republican
government--would be exposed by any further increase of the already
overgrown influence of corporate authorities. I can not, therefore,
consistently with my views of duty, advise a renewal of a connection
which circumstances have dissolved.
The discontinuance of the use of State banks for fiscal purposes ought
not to be regarded as a measure of hostility toward those institutions.
Banks properly established and conducted are highly useful to the
business of the country, and will doubtless continue to exist in the
States so long as they conform to their laws and are found to be safe
and beneficial. How they should be created, what privileges they should
enjoy, under what responsibilities they should act, and to what
restrictions they should be subject are questions which, as I observed
on a previous occasion, belong to the States to decide. Upon their
rights or the exercise of them the General Government can have no motive
to encroach. Its duty toward them is well performed when it refrains
from legislating for their special benefit, because such legislation
would violate the spirit of the Constitution and be unjust to other
interests; when it takes no steps to impair their usefulness, but so
manages its own affairs as to make it the interest of those institutions
to strengthen and improve their condition for the security and welfare
of the community at large. They have no right to insist on a connection
with the Federal Government, nor on the use of the public money for
their own benefit. The object of the measure under consideration is to
avoid for the future a compulsory connection of this kind. It proposes
to place the General Government, in regard to the essential points of
the collection, safe-keeping, and transfer of the public money, in a
situation which shall relieve it from all dependence on the will of
irresponsible individuals or corporations; to withdraw those moneys from
the uses of private trade and confide them to agents constitutionally
selected and controlled by law; to abstain from improper interference
with the industry of the people and withhold inducements to improvident
dealings on the part of individuals; to give stability to the concerns
of the Treasury; to preserve the measures of the Government from the
unavoidable reproaches that flow from such a connection, and the banks
themselves from the injurious effects of a supposed participation in the
political conflicts of the day, from which they will otherwise find it
difficult to escape.
These are my views upon this important subject, formed after careful
reflection and with no desire but to arrive at what is most likely
to promote the public interest. They are now, as they were before,
submitted with unfeigned deference for the opinions of others. It was
hardly to be hoped that changes so important on a subject so interesting
could be made without producing a serious diversity of opinion; but
so long as those conflicting views are kept above the influence of
individual or local interests, so long as they pursue only the general
good and are discussed with moderation and candor, such diversity is a
benefit, not an injury. If a majority of Congress see the public welfare
in a different light, and more especially if they should be satisfied
that the measure proposed would not be acceptable to the people, I shall
look to their wisdom to substitute such as may be more conducive to
the one and more satisfactory to the other. In any event, they may
confidently rely on my hearty cooperation to the fullest extent to
which my views of the Constitution and my sense of duty will permit.
It is obviously important to this branch of the public service and to
the business and quiet of the country that the whole subject should in
some way be settled and regulated by law, and, if possible, at your
present session. Besides the plans above referred to, I am not aware
that any one has been suggested except that of keeping the public money
in the State banks in special deposit. This plan is to some extent in
accordance with the practice of the Government and with the present
arrangements of the Treasury Department, which, except, perhaps, during
the operation of the late deposit act, has always been allowed, even
during the existence of a national bank, to make a temporary use of the
State banks in particular places for the safe-keeping of portions of the
revenue. This discretionary power might be continued if Congress deem it
desirable, whatever general system be adopted. So long as the connection
is voluntary we need, perhaps, anticipate few of those difficulties and
little of that dependence on the banks which must attend every such
connection when compulsory in its nature and when so arranged as to make
the banks a fixed part of the machinery of government. It is undoubtedly
in the power of Congress so to regulate and guard it as to prevent the
public money from being applied to the use or intermingled with the
affairs of individuals. Thus arranged, although it would not give to
the Government that entire control over its own funds which I desire to
secure to it by the plan I have proposed, it would, it must be admitted,
in a great degree accomplish one of the objects which has recommended
that plan to my judgment--the separation of the fiscal concerns of the
Government from those of individuals or corporations.
With these observations I recommend the whole matter to your
dispassionate reflection, confidently hoping that some conclusion may
be reached by your deliberations which on the one hand shall give
safety and stability to the fiscal operations of the Government, and
be consistent, on the other, with the genius of our institutions and
with the interests and wishes of the great mass of our constituents.
It was my hope that nothing would occur to make necessary on
this occasion any allusion to the late national bank. There are
circumstances, however, connected with the present state of its affairs
that bear so directly on the character of the Government and the welfare
of the citizen that I should not feel myself excused in neglecting to
notice them. The charter which terminated its banking privileges on the
4th of March, 1836, continued its corporate power two years more for
the sole purpose of closing its affairs, with authority "to use the
corporate name, style, and capacity for the purpose of suits for a final
settlement and liquidation of the affairs and acts of the corporation,
and for the sale and disposition of their estate--real, personal, and
mixed--but for no other purpose or in any other manner whatsoever." Just
before the banking privileges ceased, its effects were transferred by
the bank to a new State institution, then recently incorporated, in
trust, for the discharge of its debts and the settlement of its affairs.
With this trustee, by authority of Congress, an adjustment was
subsequently made of the large interest which the Government had in the
stock of the institution. The manner in which a trust unexpectedly
created upon the act granting the charter, and involving such great
public interests, has been executed would under any circumstances be a
fit subject of inquiry; but much more does it deserve your attention
when it embraces the redemption of obligations to which the authority
and credit of the United States have given value. The two years allowed
are now nearly at an end. It is well understood that the trustee has
not redeemed and canceled the outstanding notes of the bank, but has
reissued and is actually reissuing, since the 3d of March, 1836, the
notes which have been received by it to a vast amount. According to its
own official statement, so late as the 1st of October last, nineteen
months after the banking privileges given by the charter had expired, it
had under its control uncanceled notes of the late Bank of the United
States to the amount of $27,561,866, of which $6,175,861 were in actual
circulation, $1,468,627 at State bank agencies, and $3,002,390 _in
transitu_, thus showing that upward of ten millions and a half of the
notes of the old bank were then still kept outstanding.
The impropriety of this procedure is obvious, it being the duty of the
trustee to cancel and not to put forth the notes of an institution whose
concerns it had undertaken to wind up. If the trustee has a right to
reissue these notes now, I can see no reason why it may not continue
to do so after the expiration of the two years. As no one could have
anticipated a course so extraordinary, the prohibitory clause of the
charter above quoted was not accompanied by any penalty or other special
provision for enforcing it, nor have we any general law for the
prevention of similar acts in future.
But it is not in this view of the subject alone that your interposition
is required. The United States in settling with the trustee for their
stock have withdrawn their funds from their former direct liability to
the creditors of the old bank, yet notes of the institution continue
to be sent forth in its name, and apparently upon the authority of the
United States. The transactions connected with the employment of the
bills of the old bank are of vast extent, and should they result
unfortunately the interests of individuals may be deeply compromised.
Without undertaking to decide how far or in what form, if any, the
trustee could be made liable for notes which contain no obligation on
its part, or the old bank for such as are put in circulation after the
expiration of its charter and without its authority, or the Government
for indemnity in case of loss, the question still presses itself upon
your consideration whether it is consistent with duty and good faith on
the part of the Government to witness this proceeding without a single
effort to arrest it.
The report of the Commissioner of the General Land Office, which will
be laid before you by the Secretary of the Treasury, will show how the
affairs of that office have been conducted for the past year. The
disposition of the public lands is one of the most important trusts
confided to Congress. The practicability of retaining the title and
control of such extensive domains in the General Government, and at the
same time admitting the Territories embracing them into the Federal
Union as coequals with the original States, was seriously doubted by
many of our wisest statesmen. All feared that they would become a source
of discord, and many carried their apprehensions so far as to see in
them the seeds of a future dissolution of the Confederacy. But happily
our experience has already been sufficient to quiet in a great degree
all such apprehensions. The position at one time assumed, that the
admission of new States into the Union on the same footing with the
original States was incompatible with a right of soil in the United
States and operated as a surrender thereof, notwithstanding the terms of
the compacts by which their admission was designed to be regulated, has
been wisely abandoned. Whether in the new or the old States, all now
agree that the right of soil to the public lands remains in the Federal
Government, and that these lands constitute a common property, to be
disposed of for the common benefit of all the States, old and new.
Acquiescence in this just principle by the people of the new States has
naturally promoted a disposition to adopt the most liberal policy in the
sale of the public lands. A policy which should be limited to the mere
object of selling the lands for the greatest possible sum of money,
without regard to higher considerations, finds but few advocates. On the
contrary, it is generally conceded that whilst the mode of disposition
adopted by the Government should always be a prudent one, yet its
leading object ought to be the early settlement and cultivation of the
lands sold, and that it should discountenance, if it can not prevent,
the accumulation of large tracts in the same hands, which must
necessarily retard the growth of the new States or entail upon them
a dependent tenantry and its attendant evils.
A question embracing such important interests and so well calculated
to enlist the feelings of the people in every quarter of the Union has
very naturally given rise to numerous plans for the improvement of
the existing system. The distinctive features of the policy that has
hitherto prevailed are to dispose of the public lands at moderate
prices, thus enabling a greater number to enter into competition for
their purchase and accomplishing a double object--of promoting their
rapid settlement by the purchasers and at the same time increasing the
receipts of the Treasury; to sell for cash, thereby preventing the
disturbing influence of a large mass of private citizens indebted to
the Government which they have a voice in controlling; to bring them
into market no faster than good lands are supposed to be wanted for
improvement, thereby preventing the accumulation of large tracts in few
hands; and to apply the proceeds of the sales to the general purposes of
the Government, thus diminishing the amount to be raised from the people
of the States by taxation and giving each State its portion of the
benefits to be derived from this common fund in a manner the most quiet,
and at the same time, perhaps, the most equitable, that can be devised.
These provisions, with occasional enactments in behalf of special
interests deemed entitled to the favor of the Government, have in their
execution produced results as beneficial upon the whole as could
reasonably be expected in a matter so vast, so complicated, and so
exciting. Upward of 70,000,000 acres have been sold, the greater part of
which is believed to have been purchased for actual settlement. The
population of the new States and Territories created out of the public
domain increased between 1800 and 1830 from less than 60,000 to upward
of 2,300,000 souls, constituting at the latter period about one-fifth
of the whole people of the United States. The increase since can not
be accurately known, but the whole may now be safely estimated at
over three and a half millions of souls, composing nine States, the
representatives of which constitute above one-third of the Senate and
over one-sixth of the House of Representatives of the United States.
Thus has been formed a body of free and independent landholders with a
rapidity unequaled in the history of mankind; and this great result has
been produced without leaving anything for future adjustment between
the Government and its citizens. The system under which so much has
been accomplished can not be intrinsically bad, and with occasional
modifications to correct abuses and adapt it to changes of circumstances
may, I think, be safely trusted for the future. There is in the
management of such extensive interests much virtue in stability; and
although great and obvious improvements should not be declined, changes
should never be made without the fullest examination and the clearest
demonstration of their practical utility. In the history of the past we
have an assurance that this safe rule of action will not be departed
from in relation to the public lands; nor is it believed that any
necessity exists for interfering with the fundamental principles of the
system, or that the public mind, even in the new States, is desirous
of any radical alterations. On the contrary, the general disposition
appears to be to make such modifications and additions only as will the
more effectually carry out the original policy of filling our new States
and Territories with an industrious and independent population.
The modification most perseveringly pressed upon Congress, which has
occupied so much of its time for years past, and will probably do so
for a long time to come, if not sooner satisfactorily adjusted, is
a reduction in the cost of such portions of the public lands as are
ascertained to be unsalable at the rate now established by law, and a
graduation according to their relative value of the prices at which they
may hereafter be sold. It is worthy of consideration whether justice may
not be done to every interest in this matter, and a vexed question set
at rest, perhaps forever, by a reasonable compromise of conflicting
opinions. Hitherto, after being offered at public sale, lands have been
disposed of at one uniform price, whatever difference there might be in
their intrinsic value. The leading considerations urged in favor of the
measure referred to are that in almost all the land districts, and
particularly in those in which the lands have been long surveyed and
exposed to sale, there are still remaining numerous and large tracts of
every gradation of value, from the Government price downward; that these
lands will not be purchased at the Government price so long as better
can be conveniently obtained for the same amount; that there are large
tracts which even the improvements of the adjacent lands will never
raise to that price, and that the present uniform price, combined with
their irregular value, operates to prevent a desirable compactness of
settlements in the new States and to retard the full development of that
wise policy on which our land system is founded, to the injury not only
of the several States where the lands lie, but of the United States as
a whole.
The remedy proposed has been a reduction of the prices according to the
length of time the lands have been in market, without reference to any
other circumstances. The certainty that the efflux of time would not
always in such cases, and perhaps not even generally, furnish a true
criterion of value, and the probability that persons residing in the
vicinity, as the period for the reduction of prices approached, would
postpone purchases they would otherwise make, for the purpose of
availing themselves of the lower price, with other considerations of a
similar character, have hitherto been successfully urged to defeat the
graduation upon time.
May not all reasonable desires upon this subject be satisfied without
encountering any of these objections? All will concede the abstract
principle that the price of the public lands should be proportioned to
their relative value, so far as can be accomplished without departing
from the rule heretofore observed requiring fixed prices in cases of
private entries. The difficulty of the subject seems to lie in the
mode of ascertaining what that value is. Would not the safest plan
be that which has been adopted by many of the States as the basis of
taxation--an actual valuation of lands and classification of them into
different rates? Would it not be practicable and expedient to cause the
relative value of the public lands in the old districts which have been
for a certain length of time in market to be appraised and classed into
two or more rates below the present minimum price by the officers now
employed in this branch of the public service or in any other mode
deemed preferable, and to make those prices permanent if upon the coming
in of the report they shall prove satisfactory to Congress? Could not
all the objects of graduation be accomplished in this way, and the
objections which have hitherto been urged against it avoided? It would
seem to me that such a step, with a restriction of the sales to limited
quantities and for actual improvement, would be free from all just
exception.
By the full exposition of the value of the lands thus furnished and
extensively promulgated persons living at a distance would be informed
of their true condition and enabled to enter into competition with those
residing in the vicinity; the means of acquiring an independent home
would be brought within the reach of many who are unable to purchase at
present prices; the population of the new States would be made more
compact, and large tracts would be sold which would otherwise remain on
hand. Not only would the land be brought within the means of a larger
number of purchasers, but many persons possessed of greater means would
be content to settle on a larger quantity of the poorer lands rather
than emigrate farther west in pursuit of a smaller quantity of better
lands. Such a measure would also seem to be more consistent with the
policy of the existing laws--that of converting the public domain into
cultivated farms owned by their occupants. That policy is not best
promoted by sending emigration up the almost interminable streams of
the West to occupy in groups the best spots of land, leaving immense
wastes behind them and enlarging the frontier beyond the means of the
Government to afford it adequate protection, but in encouraging it to
occupy with reasonable denseness the territory over which it advances,
and find its best defense in the compact front which it presents to
the Indian tribes. Many of you will bring to the consideration of the
subject the advantages of local knowledge and greater experience, and
all will be desirous of making an early and final disposition of every
disturbing question in regard to this important interest. If these
suggestions shall in any degree contribute to the accomplishment of
so important a result, it will afford me sincere satisfaction.
In some sections of the country most of the public lands have been sold,
and the registers and receivers have very little to do. It is a subject
worthy of inquiry whether in many cases two or more districts may not
be consolidated and the number of persons employed in this business
considerably reduced. Indeed, the time will come when it will be the
true policy of the General Government, as to some of the States, to
transfer to them for a reasonable equivalent all the refuse and unsold
lands and to withdraw the machinery of the Federal land offices
altogether. All who take a comprehensive view of our federal system and
believe that one of its greatest excellences consists in interfering as
little as possible with the internal concerns of the States look forward
with great interest to this result.
A modification of the existing laws in respect to the prices of the
public lands might also have a favorable influence on the legislation
of Congress in relation to another branch of the subject. Many who have
not the ability to buy at present prices settle on those lands with
the hope of acquiring from their cultivation the means of purchasing
under preemption laws from time to time passed by Congress. For this
encroachment on the rights of the United States they excuse themselves
under the plea of their own necessities; the fact that they dispossess
nobody and only enter upon the waste domain: that they give additional
value to the public lands in their vicinity, and their intention
ultimately to pay the Government price. So much weight has from time to
time been attached to these considerations that Congress have passed
laws giving actual settlers on the public lands a right of preemption to
the tracts occupied by them at the minimum price. These laws have in all
instances been retrospective in their operation, but in a few years
after their passage crowds of new settlers have been found on the public
lands for similar reasons and under like expectations, who have been
indulged with the same privilege. This course of legislation tends to
impair public respect for the laws of the country. Either the laws to
prevent intrusion upon the public lands should be executed, or, if that
should be impracticable or inexpedient, they should be modified or
repealed. If the public lands are to be considered as open to be
occupied by any, they should by law be thrown open to all. That which is
intended in all instances to be legalized should at once be made legal,
that those who are disposed to conform to the laws may enjoy at least
equal privileges with those who are not. But it is not believed to be
the disposition of Congress to open the public lands to occupancy
without regular entry and payment of the Government price, as such a
course must tend to worse evils than the credit system, which it was
found necessary to abolish.
It would seem, therefore, to be the part of wisdom and sound policy
to remove as far as practicable the causes which produce intrusions
upon the public lands, and then take efficient steps to prevent them
in future. Would any single measure be so effective in removing all
plausible grounds for these intrusions as the graduation of price
already suggested? A short period of industry and economy in any part of
our country would enable the poorest citizen to accumulate the means to
buy him a home at the lower prices, and leave him without apology for
settling on lands not his own. If he did not under such circumstances,
he would enlist no sympathy in his favor, and the laws would be readily
executed without doing violence to public opinion.
A large portion of our citizens have seated themselves on the public
lands without authority since the passage of the last preemption law,
and now ask the enactment of another to enable them to retain the lands
occupied upon payment of the minimum Government price. They ask that
which has been repeatedly granted before. If the future may be judged of
by the past, little harm can be done to the interests of the Treasury
by yielding to their request. Upon a critical examination it is found
that the lands sold at the public sales since the introduction of cash
payments, in 1820, have produced on an average the net revenue of only
6 cents an acre more than the minimum Government price. There is no
reason to suppose that future sales will be more productive. The
Government, therefore, has no adequate pecuniary interest to induce it
to drive these people from the lands they occupy for the purpose of
selling them to others.
Entertaining these views, I recommend the passage of a preemption law
for their benefit in connection with the preparatory steps toward the
graduation of the price of the public lands, and further and more
effectual provisions to prevent intrusions hereafter. Indulgence to
those who have settled on these lands with expectations that past
legislation would be made a rule for the future, and at the same time
removing the most plausible ground on which intrusions are excused and
adopting more efficient means to prevent them hereafter, appears to me
the most judicious disposition which can be made of this difficult
subject. The limitations and restrictions to guard against abuses in
the execution of a preemption law will necessarily attract the careful
attention of Congress, but under no circumstances is it considered
expedient to authorize floating claims in any shape. They have been
heretofore, and doubtless would be hereafter, most prolific sources of
fraud and oppression, and instead of operating to confer the favor of
the Government on industrious settlers are often used only to minister
to a spirit of cupidity at the expense of the most meritorious of that
class.
The accompanying report of the Secretary of War will bring to your view
the state of the Army and all the various subjects confided to the
superintendence of that officer.
The principal part of the Army has been concentrated in Florida, with a
view and in the expectation of bringing the war in that Territory to a
speedy close. The necessity of stripping the posts on the maritime and
inland frontiers of their entire garrisons for the purpose of assembling
in the field an army of less than 4,000 men would seem to indicate the
necessity of increasing our regular forces; and the superior efficiency,
as well as greatly diminished expense of that description of troops,
recommend this measure as one of economy as well as of expediency.
I refer to the report for the reasons which have induced the Secretary
of War to urge the reorganization and enlargement of the staff of the
Army, and of the Ordnance Corps, in which I fully concur.
It is not, however, compatible with the interests of the people to
maintain in time of peace a regular force adequate to the defense of
our extensive frontiers. In periods of danger and alarm we must rely
principally upon a well-organized militia, and some general arrangement
that will render this description of force more efficient has long
been a subject of anxious solicitude. It was recommended to the First
Congress by General Washington, and has been since frequently brought to
your notice, and recently its importance strongly urged by my immediate
predecessor. The provision in the Constitution that renders it necessary
to adopt a uniform system of organization for the militia throughout
the United States presents an insurmountable obstacle to an efficient
arrangement by the classification heretofore proposed, and I invite your
attention to the plan which will be submitted by the Secretary of War,
for the organization of volunteer corps and the instruction of militia
officers, as more simple and practicable, if not equally advantageous,
as a general arrangement of the whole militia of the United States.
A moderate increase of the corps both of military and topographical
engineers has been more than once recommended by my predecessor, and my
conviction of the propriety, not to say necessity, of the measure, in
order to enable them to perform the various and important duties imposed
upon them, induces me to repeat the recommendation.
The Military Academy continues to answer all the purposes of its
establishment, and not only furnishes well-educated officers to the
Army, but serves to diffuse throughout the mass of our citizens
individuals possessed of military knowledge and the scientific
attainments of civil and military engineering. At present the cadet is
bound, with consent of his parents or guardians, to remain in service
five years from the period of his enlistment, unless sooner discharged,
thus exacting only one year's service in the Army after his education is
completed. This does not appear to me sufficient. Government ought to
command for a longer period the services of those who are educated at
the public expense, and I recommend that the time of enlistment be
extended to seven years, and the terms of the engagement strictly
enforced.
The creation of a national foundry for cannon, to be common to the
service of the Army and Navy of the United States, has been heretofore
recommended, and appears to be required in order to place our ordnance
on an equal footing with that of other countries and to enable that
branch of the service to control the prices of those articles and
graduate the supplies to the wants of the Government, as well as to
regulate their quality and insure their uniformity. The same reasons
induce me to recommend the erection of a manufactory of gunpowder, to
be under the direction of the Ordnance Office. The establishment of a
manufactory of small arms west of the Alleghany Mountains, upon the
plan proposed by the Secretary of War, will contribute to extend
throughout that country the improvements which exist in establishments
of a similar description in the Atlantic States, and tend to a much more
economical distribution of the armament required in the western portion
of our Union.
The system of removing the Indians west of the Mississippi, commenced
by Mr. Jefferson in 1804, has been steadily persevered in by every
succeeding President, and may be considered the settled policy of the
country. Unconnected at first with any well-defined system for their
improvement, the inducements held out to the Indians were confined
to the greater abundance of game to be found in the West; but when
the beneficial effects of their removal were made apparent a more
philanthropic and enlightened policy was adopted in purchasing their
lands east of the Mississippi. Liberal prices were given and provisions
inserted in all the treaties with them for the application of the funds
they received in exchange to such purposes as were best calculated to
promote their present welfare and advance their future civilization.
These measures have been attended thus far with the happiest results.
It will be seen by referring to the report of the Commissioner of Indian
Affairs that the most sanguine expectations of the friends and promoters
of this system have been realized. The Choctaws, Cherokees, and other
tribes that first emigrated beyond the Mississippi have for the most
part abandoned the hunter state and become cultivators of the soil.
The improvement in their condition has been rapid, and it is believed
that they are now fitted to enjoy the advantages of a simple form of
government, which has been submitted to them and received their
sanction; and I can not too strongly urge this subject upon the
attention of Congress.
Stipulations have been made with all the Indian tribes to remove them
beyond the Mississippi, except with the bands of the Wyandots, the Six
Nations in New York, the Menomonees, Munsees, and Stockbridges in
Wisconsin, and Miamies in Indiana. With all but the Menomonees it is
expected that arrangements for their emigration will be completed the
present year. The resistance which has been opposed to their removal by
some of the tribes even after treaties had been made with them to that
effect has arisen from various causes, operating differently on each
of them. In most instances they have been instigated to resistance
by persons to whom the trade with them and the acquisition of their
annuities were important, and in some by the personal influence of
interested chiefs. These obstacles must be overcome, for the Government
can not relinquish the execution of this policy without sacrificing
important interests and abandoning the tribes remaining east of the
Mississippi to certain destruction.
The decrease in numbers of the tribes within the limits of the States
and Territories has been most rapid. If they be removed, they can be
protected from those associations and evil practices which exert so
pernicious and destructive an influence over their destinies. They
can be induced to labor and to acquire property, and its acquisition
will inspire them with a feeling of independence. Their minds can be
cultivated, and they can be taught the value of salutary and uniform
laws and be made sensible of the blessings of free government and
capable of enjoying its advantages. In the possession of property,
knowledge, and a good government, free to give what direction they
please to their labor, and sharers in the legislation by which their
persons and the profits of their industry are to be protected and
secured, they will have an ever-present conviction of the importance of
union and peace among themselves and of the preservation of amicable
relations with us. The interests of the United States would also be
greatly promoted by freeing the relations between the General and State
Governments from what has proved a most embarrassing incumbrance by a
satisfactory adjustment of conflicting titles to lands caused by the
occupation of the Indians, and by causing the resources of the whole
country to be developed by the power of the State and General
Governments and improved by the enterprise of a white population.
Intimately connected with this subject is the obligation of the
Government to fulfill its treaty stipulations and to protect the Indians
thus assembled "at their new residences from all interruptions and
disturbances from any other tribes or nations of Indians or from any
other person or persons whatsoever," and the equally solemn obligation
to guard from Indian hostility its own border settlements, stretching
along a line of more than 1,000 miles. To enable the Government to
redeem this pledge to the Indians and to afford adequate protection to
its own citizens will require the continual presence of a considerable
regular force on the frontiers and the establishment of a chain of
permanent posts. Examinations of the country are now making, with a view
to decide on the most suitable points for the erection of fortresses and
other works of defense, the results of which will be presented to you by
the Secretary of War at an early day, together with a plan for the
effectual protection of the friendly Indians and the permanent defense
of the frontier States.
By the report of the Secretary of the Navy herewith communicated it
appears that unremitted exertions have been made at the different
navy-yards to carry into effect all authorized measures for the
extension and employment of our naval force. The launching and
preparation of the ship of the line _Pennsylvania_ and the complete
repairs of the ships of the line _Ohio, Delaware_, and _Columbus_ may
be noticed as forming a respectable addition to this important arm
of our national defense. Our commerce and navigation have received
increased aid, and protection during the present year. Our squadrons in
the Pacific and on the Brazilian station have been much increased, and
that in the Mediterranean, although small, is adequate to the present
wants of our commerce in that sea. Additions have been made to our
squadron on the West India station, where the large force under
Commodore Dallas has been most actively and efficiently employed in
protecting our commerce, in preventing the importation of slaves, and
in cooperating with the officers of the Army in carrying on the war
in Florida.
The satisfactory condition of our naval force abroad leaves at our
disposal the means of conveniently providing for a home squadron
for the protection of commerce upon our extensive coast. The amount
of appropriations required for such a squadron will be found in the
general estimates for the naval service for the year 1838.
The naval officers engaged upon our coast survey have rendered important
service to our navigation. The discovery of a new channel into the
harbor of New York, through which our largest ships may pass without
danger, must afford important commercial advantages to that harbor and
add greatly to its value as a naval station. The accurate survey of
Georges Shoals, off the coast of Massachusetts, lately completed, will
render comparatively safe a navigation hitherto considered dangerous.
Considerable additions have been made to the number of captains,
commanders, lieutenants, surgeons, and assistant surgeons in the Navy.
These additions were rendered necessary by the increased number of
vessels put in commission to answer the exigencies of our growing
commerce.
Your attention is respectfully invited to the various suggestions of the
Secretary for the improvement of the naval service.
The report of the Postmaster-General exhibits the progress and condition
of the mail service. The operations of the Post-Office Department
constitute one of the most active elements of our national prosperity,
and it is gratifying to observe with what vigor they are conducted. The
mail routes of the United States cover an extent of about 142,877 miles,
having been increased about 37,103 miles within the last two years. The
annual mail transportation on these routes is about 36,228,962 miles,
having been increased about 10,359,476 miles within the same period. The
number of post-offices has also been increased from 10,770 to 12,099,
very few of which receive the mails less than once a week, and a large
portion of them daily. Contractors and postmasters in general are
represented as attending to their duties with most commendable zeal and
fidelity. The revenue of the Department within the year ending on the
30th of June last was $4,137,056.59, and its liabilities accruing within
the same time were $3,380,847.75. The increase of revenue over that of
the preceding year was $708,166.41.
For many interesting details I refer you to the report of the
Postmaster-General, with the accompanying papers, Your particular
attention is invited to the necessity of providing a more safe and
convenient building for the accommodation of that Department.
I lay before Congress copies of reports submitted in pursuance of
a call made by me upon the heads of Departments for such suggestions
as their experience might enable them to make as to what further
legislative provisions may be advantageously adopted to secure the
faithful application of public moneys to the objects for which they
are appropriated, to prevent their misapplication or embezzlement by
those intrusted with the expenditure of them, and generally to increase
the security of the Government against losses in their disbursement.
It is needless to dilate on the importance of providing such new
safeguards as are within the power of legislation to promote these
ends, and I have little to add to the recommendations submitted in the
accompanying papers.
By law the terms of service of our most important collecting and
disbursing officers in the civil departments are limited to four years,
and when reappointed their bonds are required to be renewed. The safety
of the public is much increased by this feature of the law, and there
can be no doubt that its application to all officers intrusted with the
collection or disbursement of the public money, whatever may be the
tenure of their offices, would be equally beneficial. I therefore
recommend, in addition to such of the suggestions presented by the heads
of Departments as you may think useful, a general provision that all
officers of the Army or Navy, or in the civil departments, intrusted
with the receipt or payment of public money, and whose term of service
is either unlimited or for a longer time than four years, be required to
give new bonds, with good and sufficient sureties, at the expiration of
every such period.
A change in the period of terminating the fiscal year, from the 1st
of October to the 1st of April, has been frequently recommended, and
appears to be desirable.
The distressing casualties in steamboats which have so frequently
happened during the year seem to evince the necessity of attempting
to prevent them by means of severe provisions connected with their
customhouse papers. This subject was submitted to the attention of
Congress by the Secretary of the Treasury in his last annual report,
and will be again noticed at the present session, with additional
details. It will doubtless receive that early and careful consideration
which its pressing importance appears to require.
Your attention has heretofore been frequently called to the affairs of
the District of Columbia, and I should not again ask it did not their
entire dependence on Congress give them a constant claim upon its
notice. Separated by the Constitution from the rest of the Union,
limited in extent, and aided by no legislature of its own, it would seem
to be a spot where a wise and uniform system of local government might
have been easily adopted. This District has, however, unfortunately
been left to linger behind the rest of the Union. Its codes, civil
and criminal, are not only very defective, but full of obsolete or
inconvenient provisions. Being formed of portions of two States,
discrepancies in the laws prevail in different parts of the territory,
small as it is; and although it was selected as the seat of the General
Government, the site of its public edifices, the depository of its
archives, and the residence of officers intrusted with large amounts of
public property and the management of public business, yet it has never
been subjected to or received that special and comprehensive legislation
which these circumstances peculiarly demand. I am well aware of the
various subjects of greater magnitude and immediate interest that press
themselves on the consideration of Congress, but I believe there is not
one that appeals more directly to its justice than a liberal and even
generous attention to the interests of the District of Columbia and
a thorough and careful revision of its local government.