WASHINGTON, _May 10, 1838_.
_To the Senate and House of Representatives_:
I submit to the consideration of Congress a statement prepared by the
Secretary of the Treasury, by which it appears that the United States,
with over twenty-eight millions in deposit with the States and over
fifteen millions due from individuals and banks, are, from the situation
in which those funds are placed, in immediate danger of being rendered
unable to discharge with good faith and promptitude the various
pecuniary obligations of the Government. The occurrence of this result
has for some time been apprehended, and efforts made to avert it. As the
principal difficulty arises from a prohibition in the present law to
reissue such Treasury notes as might be paid in before they fell due,
and may be effectually obviated by giving the Treasury during the whole
year the benefit of the full amount originally authorized, the remedy
would seem to be obvious and easy.
The serious embarrassments likely to arise from a longer continuance
of the present state of things induces me respectfully to invite the
earliest attention of Congress to the subject which may be consistent
with a due regard to other public interests.