FIFTH ANNUAL MESSAGE.

December 3, 1833.

_Fellow-Citizens of the Senate and House of Representatives_:

On your assembling to perform the high trusts which the people of the

United States have confided to you, of legislating for their common

welfare, it gives me pleasure to congratulate you upon the happy

condition of our beloved country. By the favor of Divine Providence

health is again restored to us, peace reigns within our borders,

abundance crowns the labors of our fields, commerce and domestic

industry flourish and increase, and individual happiness rewards the

private virtue and enterprise of our citizens.

Our condition abroad is no less honorable than it is prosperous at home.

Seeking nothing that is not right and determined to submit to nothing

that is wrong, but desiring honest friendships and liberal intercourse

with all nations, the United States have gained throughout the world

the confidence and respect which are due to a policy so just and so

congenial to the character of the American people and to the spirit of

their institutions.

In bringing to your notice the particular state of our foreign affairs,

it affords me high gratification to inform you that they are in a

condition which promises the continuance of friendship with all nations.

With Great Britain the interesting question of our northeastern boundary

remains still undecided. A negotiation, however, upon that subject has

been renewed since the close of the last Congress, and a proposition has

been submitted to the British Government with the view of establishing,

in conformity with the resolution of the Senate, the line designated by

the treaty of 1783. Though no definitive answer has been received, it

may be daily looked for, and I entertain a hope that the overture may

ultimately lead to a satisfactory adjustment of this important matter.

I have the satisfaction to inform you that a negotiation which, by

desire of the House of Representatives, was opened some years ago with

the British Government, for the erection of light-houses on the Bahamas,

has been successful. Those works, when completed, together with those

which the United States have constructed on the western side of the Gulf

of Florida, will contribute essentially to the safety of navigation

in that sea. This joint participation in establishments interesting

to humanity and beneficial to commerce is worthy of two enlightened

nations, and indicates feelings which can not fail to have a happy

influence upon their political relations. It is gratifying to the

friends of both to perceive that the intercourse between the two people

is becoming daily more extensive, and that sentiments of mutual good

will have grown up befitting their common origin and justifying the hope

that by wise counsels on each side not only unsettled questions may be

satisfactorily terminated, but new causes of misunderstanding prevented.

Notwithstanding that I continue to receive the most amicable assurances

from the Government of France, and that in all other respects the most

friendly relations exist between the United States and that Government,

it is to be regretted that the stipulations of the convention concluded

on the 4th July, 1831, remain in some important parts unfulfilled.

By the second article of that convention it was stipulated that the sum

payable to the United States should be paid at Paris, in six annual

installments, into the hands of such person or persons as should be

authorized by the Government of the United States to receive it, and

by the same article the first installment was payable on the 2d day of

February, 1833. By the act of Congress of the 13th July, 1832, it was

made the duty of the Secretary of the Treasury to cause the several

installments, with the interest thereon, to be received from the French

Government and transferred to the United States in such manner as he may

deem best; and by the same act of Congress the stipulations on the part

of the United States in the convention were in all respects fulfilled.

Not doubting that a treaty thus made and ratified by the two

Governments, and faithfully executed by the United States, would be

promptly complied with by the other party, and desiring to avoid the

risk and expense of intermediate agencies, the Secretary of the Treasury

deemed it advisable to receive and transfer the first installment by

means of a draft upon the French minister of finance. A draft for this

purpose was accordingly drawn in favor of the cashier of the Bank of the

United States for the amount accruing to the United States out of the

first installment, and the interest payable with it. This bill was not

drawn at Washington until five days after the installment was payable

at Paris, and was accompanied by a special authority from the President

authorizing the cashier or his assigns to receive the amount. The mode

thus adopted of receiving the installment was officially made known

to the French Government by the American chargé d'affaires at Paris,

pursuant to instructions from the Department of State. The bill,

however, though not presented for payment until the 23d day of March,

was not paid, and for the reason assigned by the French minister of

finance that no appropriation had been made by the French Chambers.

It is not known to me that up to that period any appropriation had been

required of the Chambers, and although a communication was subsequently

made to the Chambers by direction of the King, recommending that the

necessary provision should be made for carrying the convention into

effect, it was at an advanced period of the session, and the subject

was finally postponed until the next meeting of the Chambers.

Notwithstanding it has been supposed by the French ministry that the

financial stipulations of the treaty can not be carried into effect

without an appropriation by the Chambers, it appears to me to be not

only consistent with the character of France, but due to the character

of both Governments, as well as to the rights of our citizens, to treat

the convention, made and ratified in proper form, as pledging the good

faith of the French Government for its execution, and as imposing upon

each department an obligation to fulfill it; and I have received

assurances through our chargé d'affaires at Paris and the French

minister plenipotentiary at Washington, and more recently through the

minister of the United States at Paris, that the delay has not proceeded

from any indisposition on the part of the King and his ministers to

fulfill the treaty, and that measures will be presented at the next

meeting of the Chambers, and with a reasonable hope of success, to

obtain the necessary appropriation.

It is necessary to state, however, that the documents, except certain

lists of vessels captured, condemned, or burnt at sea, proper to

facilitate the examination and liquidation of the reclamations comprised

in the stipulations of the convention, and which by the sixth article

France engaged to communicate to the United States by the intermediary

of the legation, though repeatedly applied for by the American chargé

d'affaires under instructions from this Government, have not yet been

communicated; and this delay, it is apprehended, will necessarily

prevent the completion of the duties assigned to the commissioners

within the time at present prescribed by law.

The reasons for delaying to communicate these documents have not been

explicitly stated, and this is the more to be regretted as it is not

understood that the interposition of the Chambers is in any manner

required for the delivery of those papers.

Under these circumstances, in a case so important to the interests

of our citizens and to the character of our country, and under

disappointments so unexpected, I deemed it my duty, however I might

respect the general assurances to which I have adverted, no longer to

delay the appointment of a minister plenipotentiary to Paris, but to

dispatch him in season to communicate the result of his application to

the French Government at an early period of your session. I accordingly

appointed a distinguished citizen for this purpose, who proceeded on his

mission in August last and was presented to the King early in the month

of October. He is particularly instructed as to all matters connected

with the present posture of affairs, and I indulge the hope that with

the representations he is instructed to make, and from the disposition

manifested by the King and his ministers in their recent assurances to

our minister at Paris, the subject will be early considered, and

satisfactorily disposed of at the next meeting of the Chambers.

As this subject involves important interests and has attracted a

considerable share of the public attention, I have deemed it proper

to make this explicit statement of its actual condition, and should

I be disappointed in the hope now entertained the subject will be

again brought to the notice of Congress in such manner as the occasion

may require.

The friendly relations which have always been maintained between the

United States and Russia have been further extended and strengthened by

the treaty of navigation and commerce concluded on the 6th of December

last, and sanctioned by the Senate before the close of its last session.

The ratifications having been since exchanged, the liberal provisions

of the treaty are now in full force, and under the encouragement which

they have secured a flourishing and increasing commerce, yielding its

benefits to the enterprise of both nations, affords to each the just

recompense of wise measures, and adds new motives for that mutual

friendship which the two countries have hitherto cherished toward

each other.

It affords me peculiar satisfaction to state that the Government of

Spain has at length yielded to the justice of the claims which have been

so long urged in behalf of our citizens, and has expressed a willingness

to provide an indemnification as soon as the proper amount can be agreed

upon. Upon this latter point it is probable an understanding had taken

place between the minister of the United States and the Spanish

Government before the decease of the late King of Spain; and, unless

that event may have delayed its completion, there is reason to hope that

it may be in my power to announce to you early in your present session

the conclusion of a convention upon terms not less favorable than those

entered into for similar objects with other nations. That act of justice

would well accord with the character of Spain, and is due to the United

States from their ancient friend. It could not fail to strengthen the

sentiments of amity and good will between the two nations which it is so

much the wish of the United States to cherish and so truly the interest

of both to maintain.

By the first section of an act of Congress passed on the 13th of July,

1832, the tonnage duty on Spanish ships arriving from the ports of Spain

was limited to the duty payable on American vessels in the ports of

Spain previous to the 20th of October, 1817, being 5 cents per ton. That

act was intended to give effect on our side to an arrangement made with

the Spanish Government by which discriminating duties of tonnage were to

be abolished in the ports of the United States and Spain on the vessels

of the two nations. Pursuant to that arrangement, which was carried into

effect on the part of Spain on the 20th of May, 1832, by a royal order

dated the 20th of April, 1832, American vessels in the ports of Spain

have paid 5 cents per ton, which rate of duty is also paid in those

ports by Spanish ships; but as American vessels pay no tonnage duty

in the ports of the United States, the duty of 5 cents payable in our

ports by Spanish vessels under the act above mentioned is really a

discriminating duty, operating to the disadvantage of Spain. Though no

complaint has yet been made on the part of Spain, we are not the less

bound by the obligations of good faith to remove the discrimination,

and I recommend that the act be amended accordingly. As the royal order

above alluded to includes the ports of the Balearic and Canary islands

as well as those of Spain, it would seem that the provisions of the act

of Congress should be equally extensive, and that for the repayment of

such duties as may have been improperly received an addition should be

made to the sum appropriated at the last session of Congress for

refunding discriminating duties.

As the arrangement referred to, however, did not embrace the islands of

Cuba and Puerto Rico, discriminating duties to the prejudice of American

shipping continue to be levied there. From the extent of the commerce

carried on between the United States and those islands, particularly the

former, this discrimination causes serious injury to one of those great

national interests which it has been considered an essential part of our

policy to cherish, and has given rise to complaints on the part of our

merchants. Under instructions given to our minister at Madrid, earnest

representations have been made by him to the Spanish Government upon

this subject, and there is reason to expect, from the friendly

disposition which is entertained toward this country, that a beneficial

change will be produced. The disadvantage, however, to which our

shipping is subjected by the operation of these discriminating duties

requires that they be met by suitable countervailing duties during your

present session, power being at the same time vested in the President

to modify or discontinue them as the discriminating duties on American

vessels or their cargoes may be modified or discontinued at those

islands. Intimations have been given to the Spanish Government that

the United States may be obliged to resort to such measures as are of

necessary self-defense, and there is no reason to apprehend that it

would be unfavorably received. The proposed proceeding if adopted

would not be permitted, however, in any degree to induce a relaxation

in the efforts of our minister to effect a repeal of this irregularity

by friendly negotiation, and it might serve to give force to his

representations by showing the dangers to which that valuable trade is

exposed by the obstructions and burdens which a system of discriminating

and countervailing duties necessarily produces.

The selection and preparation of the Florida archives for the purpose of

being delivered over to the United States, in conformity with the royal

order as mentioned in my last annual message, though in progress, has

not yet been completed. This delay has been produced partly by causes

which were unavoidable, particularly the prevalence of the cholera at

Havana; but measures have been taken which it is believed will expedite

the delivery of those important records.

Congress were informed at the opening of the last session that

"owing, as was alleged, to embarrassments in the finances of Portugal,

consequent upon the civil war in which that nation was engaged," payment

had been made of only one installment of the amount which the Portuguese

Government had stipulated to pay for indemnifying our citizens for

property illegally captured in the blockade of Terceira. Since that

time a postponement for two years, with interest, of the two remaining

installments was requested by the Portuguese Government, and as a

consideration it offered to stipulate that rice of the United States

should be admitted into Portugal at the same duties as Brazilian rice.

Being satisfied that no better arrangement could be made, my consent was

given, and a royal order of the King of Portugal was accordingly issued

on the 4th of February last for the reduction of the duty on rice of the

United States. It would give me great pleasure if in speaking of that

country, in whose prosperity the United States are so much interested,

and with whom a long-subsisting, extensive, and mutually advantageous

commercial intercourse has strengthened the relations of friendship,

I could announce to you the restoration of its internal tranquillity.

Subsequently to the commencement of the last session of Congress the

final installment payable by Denmark under the convention of the 28th

day of March, 1830, was received. The commissioners for examining the

claims have since terminated their labors, and their awards have been

paid at the Treasury as they have been called for. The justice rendered

to our citizens by that Government is thus completed, and a pledge

is thereby afforded for the maintenance of that friendly intercourse

becoming the relations that the two nations mutually bear to each other.

It is satisfactory to inform you that the Danish Government have

recently issued an ordinance by which the commerce with the island of

St. Croix is placed on a more liberal footing than heretofore. This

change can not fail to prove beneficial to the trade between the United

States and that colony, and the advantages likely to flow from it may

lead to greater relaxations in the colonial systems of other nations.

The ratifications of the convention with the King of the Two Sicilies

have been duly exchanged, and the commissioners appointed for examining

the claims under it have entered upon the duties assigned to them by

law. The friendship that the interests of the two nations require of

them being now established, it may be hoped that each will enjoy the

benefits which a liberal commerce should yield to both.

A treaty of amity and commerce between the United States and Belgium

was concluded during the last winter and received the sanction of the

Senate, but the exchange of the ratifications has been hitherto delayed,

in consequence, in the first instance, of some delay in the reception of

the treaty at Brussels, and, subsequently, of the absence of the Belgian

minister of foreign affairs at the important conferences in which his

Government is engaged at London. That treaty does but embody those

enlarged principles of friendly policy which it is sincerely hoped will

always regulate the conduct of the two nations having such strong

motives to maintain amicable relations toward each other and so

sincerely desirous to cherish them.

With all the other European powers with whom the United States have

formed diplomatic relations and with the Sublime Porte the best

understanding prevails. From all I continue to receive assurances of

good will toward the United States--assurances which it gives me no less

pleasure to reciprocate than to receive. With all, the engagements which

have been entered into are fulfilled with good faith on both sides.

Measures have also been taken to enlarge our friendly relations and

extend our commercial intercourse with other States. The system we have

pursued of aiming at no exclusive advantages, of dealing with all on

terms of fair and equal reciprocity, and of adhering scrupulously to all

our engagements is well calculated to give success to efforts intended

to be mutually beneficial.

The wars of which the southern part of this continent was so long the

theater, and which were carried on either by the mother country against

the States which had formerly been her colonies or by the States against

each other, having terminated, and their civil dissensions having so

far subsided as with; few exceptions no longer to disturb the public

tranquillity, it is earnestly hoped those States will be able to employ

themselves without interruption in perfecting their institutions,

cultivating the arts of peace, and promoting by wise councils and able

exertions the public and private prosperity which their patriotic

struggles so well entitle them to enjoy.

With those States our relations have undergone but little change during

the present year. No reunion having yet taken place between the States

which composed the Republic of Colombia, our chargé d'affaires at Bogota

has been accredited to the Government of New Grenada, and we have,

therefore, no diplomatic relations with Venezuela and Equator, except

as they may be included in those heretofore formed with the Colombian

Republic.

It is understood that representatives from the three States were

about to assemble at Bogota to confer on the subject of their mutual

interests, particularly that of their union, and if the result should

render it necessary, measures will be taken on our part to preserve with

each that friendship and those liberal commercial connections which it

has been the constant desire of the United States to cultivate with

their sister Republics of this hemisphere. Until the important question

of reunion shall be settled, however, the different matters which have

been under discussion between the United States and the Republic of

Colombia, or either of the States which composed it, are not likely

to be brought to a satisfactory issue.

In consequence of the illness of the chargé d'affaires appointed to

Central America at the last session of Congress, he was prevented from

proceeding on his mission until the month of October. It is hoped,

however, that he is by this time at his post, and that the official

intercourse, unfortunately so long interrupted, has been thus renewed on

the part of the two nations so amicably and advantageously connected by

engagements founded on the most enlarged principles of commercial

reciprocity.

It is gratifying to state that since my last annual message some of the

most important claims of our fellow-citizens upon the Government of

Brazil have been satisfactorily adjusted, and a reliance is placed on

the friendly dispositions manifested by it that justice will also be

done in others. No new causes of complaint have arisen, and the trade

between the two countries flourishes under the encouragement secured

to it by the liberal provisions of the treaty.

It is cause of regret that, owing, probably, to the civil dissensions

which have occupied the attention of the Mexican Government, the time

fixed by the treaty of limits with the United States for the meeting of

the commissioners to define the boundaries between the two nations has

been suffered to expire without the appointment of any commissioners on

the part of that Government. While the true boundary remains in doubt by

either party it is difficult to give effect to those measures which are

necessary to the protection and quiet of our numerous citizens residing

near that frontier. The subject is one of great solicitude to the United

States, and will not fail to receive my earnest attention.

The treaty concluded with Chili and approved by the Senate at its last

session was also ratified by the Chilian Government, but with certain

additional and explanatory articles of a nature to have required it to

be again submitted to the Senate. The time limited for the exchange of

the ratifications, however, having since expired, the action of both

Governments on the treaty will again become necessary.

The negotiations commenced with the Argentine Republic relative to

the outrages committed on our vessels engaged in the fisheries at the

Falkland Islands by persons acting under the color of its authority, as

well as the other matters in controversy between the two Governments,

have been suspended by the departure of the chargé d'affaires of the

United States from Buenos Ayres. It is understood, however, that a

minister was subsequently appointed by that Government to renew the

negotiation in the United States, but though daily expected he has

not yet arrived in this country.

With Peru no treaty has yet been formed, and with Bolivia no diplomatic

intercourse has yet been established. It will be my endeavor to

encourage those sentiments of amity and that liberal commerce which

belong to the relations in which all the independent States of this

continent stand toward each other.

I deem it proper to recommend to your notice the revision of our

consular system. This has become an important branch of the public

service, inasmuch as it is intimately connected with the preservation

of our national character abroad, with the interest of our citizens in

foreign countries, with the regulation and care of our commerce, and

with the protection of our seamen. At the close of the last session of

Congress I communicated a report from the Secretary of State upon the

subject, to which I now refer, as containing information which may be

useful in any inquiries that Congress may see fit to institute with a

view to a salutary reform of the system.

It gives me great pleasure to congratulate you upon the prosperous

condition of the finances of the country, as will appear from the report

which the Secretary of the Treasury will in due time lay before you.

The receipts into the Treasury during the present year will amount to

more than $32,000,000. The revenue derived from customs will, it is

believed, be more than $28,000,000, and the public lands will yield about

$3,000,000. The expenditures within the year for all objects, including

$2,572,240.99 on account of the public debt, will not amount to

$25,000,000, and a large balance will remain in the Treasury after

satisfying all the appropriations chargeable on the revenue for the

present year.

The measures taken by the Secretary of the Treasury will probably enable

him to pay off in the course of the present year the residue of the

exchanged 4-1/2 per cent stock, redeemable on the 1st of January next.

It has therefore been included in the estimated expenditures of this

year, and forms a part of the sum above stated to have been paid on

account of the public debt. The payment of this stock will reduce the

whole debt of the United States, funded and unfunded, to the sum of

$4,760,082.08, and as provision has already been made for the 4-1/2

percents above mentioned, and charged in the expenses of the present

year, the sum last stated is all that now remains of the national debt;

and the revenue of the coming year, together with the balance now in the

Treasury, will be sufficient to discharge it, after meeting the current

expenses of the Government. Under the power given to the commissioners

of the sinking fund, it will, I have no doubt, be purchased on favorable

terms within the year.

From this view of the state of the finances and the public engagements

yet to be fulfilled you will perceive that if Providence permits me

to meet you at another session I shall have the high gratification of

announcing to you that the national debt is extinguished. I can not

refrain from expressing the pleasure I feel at the near approach of that

desirable event. The short period of time within which the public debt

will have been discharged is strong evidence of the abundant resources

of the country and of the prudence and economy with which the Government

has heretofore been administered. We have waged two wars since we became

a nation, with one of the most powerful kingdoms in the world, both of

them undertaken in defense of our dearest rights, both successfully

prosecuted and honorably terminated; and many of those who partook in

the first struggle as well as in the second will have lived to see

the last item of the debt incurred in these necessary but expensive

conflicts faithfully and honestly discharged. And we shall have the

proud satisfaction of bequeathing to the public servants who follow us

in the administration of the Government the rare blessing of a revenue

sufficiently abundant, raised without injustice or oppression to our

citizens, and unencumbered with any burdens but what they themselves

shall think proper to impose upon it.

The flourishing state of the finances ought not, however, to encourage

us to indulge in a lavish expenditure of the public treasure. The

receipts of the present year do not furnish the test by which we are to

estimate the income of the next. The changes made in our revenue system

by the acts of Congress of 1832 and 1833, and more especially by the

former, have swelled the receipts of the present year far beyond the

amount to be expected in future years upon the reduced tariff of duties.

The shortened credits on revenue bonds and the cash duties on woolens

which were introduced by the act of 1832, and took effect on the 4th of

March last, have brought large sums into the Treasury in 1833, which,

according to the credits formerly given, would not have been payable

until 1834, and would have formed a part of the income of that year.

These causes would of themselves produce a great diminution of the

receipts in the year 1834 as compared with the present one, and they

will be still more diminished by the reduced rates of duties which take

place on the 1st of January next on some of the most important and

productive articles. Upon the best estimates that can be made the

receipts of the next year, with the aid of the unappropriated amount

now in the Treasury, will not be much more than sufficient to meet the

expenses of the year and pay the small remnant of the national debt

which yet remains unsatisfied. I can not, therefore, recommend to you

any alteration in the present tariff of duties. The rate as now fixed by

law on the various articles was adopted at the last session of Congress,

as a matter of compromise, with unusual unanimity, and unless it is

found to produce more than the necessities of the Government call for

there would seem to be no reason at this time to justify a change.

But while I forbear to recommend any further reduction of the duties

beyond that already provided for by the existing laws, I must earnestly

and respectfully press upon Congress the importance of abstaining from

all appropriations which are not absolutely required for the public

interest and authorized by the powers clearly delegated to the United

States. We are beginning a new era in our Government. The national debt,

which has so long been a burden on the Treasury, will be finally

discharged in the course of the ensuing year. No more money will

afterwards be needed than what may be necessary to meet the ordinary

expenses of the Government. Now, then, is the proper moment to fix our

system of expenditure on firm and durable principles, and I can not

too strongly urge the necessity of a rigid economy and an inflexible

determination not to enlarge the income beyond the real necessities

of the Government and not to increase the wants of the Government by

unnecessary and profuse expenditures. If a contrary course should be

pursued, it may happen that the revenue of 1834 will fall short of the

demands upon it, and after reducing the tariff in order to lighten the

burdens of the people, and providing for a still further reduction to

take effect hereafter, it would be much to be deplored if at the end of

another year we should find ourselves obliged to retrace our steps and

impose additional taxes to meet unnecessary expenditures.

It is my duty on this occasion to call your attention to the

destruction of the public building occupied by the Treasury Department,

which happened since the last adjournment of Congress. A thorough

inquiry into the causes of this loss was directed and made at the time,

the result of which will be duly communicated to you. I take pleasure,

however, in stating here that by the laudable exertions of the officers

of the Department and many of the citizens of the District but few

papers were lost, and none that will materially affect the public

interest.

The public convenience requires that another building should be erected

as soon as practicable, and in providing for it it will be advisable to

enlarge in some manner the accommodations for the public officers of

the several Departments, and to authorize the erection of suitable

depositories for the safe-keeping of the public documents and records.

Since the last adjournment of Congress the Secretary of the Treasury

has directed the money of the United States to be deposited in certain

State banks designated by him, and he will immediately lay before you

his reasons for this direction. I concur with him entirely in the view

he has taken of the subject, and some months before the removal I urged

upon the Department the propriety of taking that step. The near approach

of the day on which the charter will expire, as well as the conduct

of the bank, appeared to me to call for this measure upon the high

considerations of public interest and public duty. The extent of its

misconduct, however, although known to be great, was not at that time

fully developed by proof. It was not until late in the month of August

that I received from the Government directors an official report

establishing beyond question that this great and powerful institution

had been actively engaged in attempting to influence the elections of

the public officers by means of its money, and that, in violation of

the express provisions of its charter, it had by a formal resolution

placed its funds at the disposition of its president to be employed in

sustaining the political power of the bank. A copy of this resolution is

contained in the report of the Government directors before referred to,

and however the object may be disguised by cautious language, no one can

doubt that this money was in truth intended for electioneering purposes,

and the particular uses to which it was proved to have been applied

abundantly show that it was so understood. Not only was the evidence

complete as to the past application of the money and power of the bank

to electioneering purposes, but that the resolution of the board of

directors authorized the same course to be pursued in future.

It being thus established by unquestionable proof that the Bank of the

United States was converted into a permanent electioneering engine, it

appeared to me that the path of duty which the executive department of

the Government ought to pursue was not doubtful. As by the terms of the

bank charter no officer but the Secretary of the Treasury could remove

the deposits, it seemed to me that this authority ought to be at once

exerted to deprive that great corporation of the support and countenance

of the Government in such an use of its funds and such an exertion

of its power. In this point of the case the question is distinctly

presented whether the people of the United States are to govern through

representatives chosen by their unbiased suffrages or whether the money

and power of a great corporation are to be secretly exerted to influence

their judgment and control their decisions. It must now be determined

whether the bank is to have its candidates for all offices in the

country, from the highest to the lowest, or whether candidates on both

sides of political questions shall be brought forward as heretofore and

supported by the usual means.

At this time the efforts of the bank to control public opinion,

through the distresses of some and the fears of others, are equally

apparent, and, if possible, more objectionable. By a curtailment of its

accommodations more rapid than any emergency requires, and even while

it retains specie to an almost unprecedented amount in its vaults,

it is attempting to produce great embarrassment in one portion of the

community, while through presses known to have been sustained by its

money it attempts by unfounded alarms to create a panic in all.

These are the means by which it seems to expect that it can force a

restoration of the deposits, and as a necessary consequence extort from

Congress a renewal of its charter. I am happy to know that through the

good sense of our people the effort to get up a panic has hitherto

failed, and that through the increased accommodations which the State

banks have been enabled to afford, no public distress has followed the

exertions of the bank, and it can not be doubted that the exercise of

its power and the expenditure of its money, as well as its efforts to

spread groundless alarm, will be met and rebuked as they deserve. In my

own sphere of duty I should feel myself called on by the facts disclosed

to order a _scire facias_ against the bank, with a view to put an end to

the chartered rights it has so palpably violated, were it not that the

charter itself will expire as soon as a decision would probably be

obtained from the court of last resort.

I called the attention of Congress to this subject in my last annual

message, and informed them that such measures as were within the reach

of the Secretary of the Treasury had been taken to enable him to judge

whether the public deposits in the Bank of the United States were

entirely safe; but that as his single powers might be inadequate to the

object, I recommended the subject to Congress as worthy of their serious

investigation, declaring it as my opinion that an inquiry into the

transactions of that institution, embracing the branches as well as the

principal bank, was called for by the credit which was given throughout

the country to many serious charges impeaching their character, and

which, if true, might justly excite the apprehension that they were no

longer a safe depository for the public money. The extent to which the

examination thus recommended was gone into is spread upon your journals,

and is too well known to require to be stated. Such as was made resulted

in a report from a majority of the Committee of Ways and Means touching

certain specified points only, concluding with a resolution that the

Government deposits might safely be continued in the Bank of the United

States. This resolution was adopted at the close of the session by the

vote of a majority of the House of Representatives.

Although I may not always be able to concur in the views of the

public interest or the duties of its agents which may be taken by the

other departments of the Government or either of its branches, I am,

notwithstanding, wholly incapable of receiving otherwise than with the

most sincere respect all opinions or suggestions proceeding from such a

source, and in respect to none am I more inclined to do so than to the

House of Representatives. But it will be seen from the brief views at

this time taken of the subject by myself, as well as the more ample ones

presented by the Secretary of the Treasury, that the change in the

deposits which has been ordered has been deemed to be called for by

considerations which are not affected by the proceedings referred to,

and which, if correctly viewed by that Department, rendered its act

a matter of imperious duty.

Coming as you do, for the most part, immediately from the people and the

States by election, and possessing the fullest opportunity to know their

sentiments, the present Congress will be sincerely solicitous to carry

into full and fair effect the will of their constituents in regard to

this institution. It will be for those in whose behalf we all act to

decide whether the executive department of the Government, in the steps

which it has taken on this subject, has been found in the line of its

duty.

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

annexed to it, exhibits the operations of the War Department for the

past year and the condition of the various subjects intrusted to its

administration.

It will be seen from them that the Army maintains the character it has

heretofore acquired for efficiency and military knowledge. Nothing has

occurred since your last session to require its services beyond the

ordinary routine of duties which upon the seaboard and the inland

frontier devolve upon it in a time of peace. The system so wisely

adopted and so long pursued of constructing fortifications at exposed

points and of preparing and collecting the supplies necessary for the

military defense of the country, and thus providently furnishing in

peace the means of defense in war, has been continued with the usual

results. I recommend to your consideration the various subjects

suggested in the report of the Secretary of War. Their adoption would

promote the public service and meliorate the condition of the Army.

Our relations with the various Indian tribes have been undisturbed

since the termination of the difficulties growing out of the hostile

aggressions of the Sac and Fox Indians. Several treaties have been

formed for the relinquishment of territory to the United States and

for the migration of the occupants of the region assigned for their

residence west of the Mississippi. Should these treaties be ratified by

the Senate, provision will have been made for the removal of almost all

the tribes now remaining east of that river and for the termination of

many difficult and embarrassing questions arising out of their anomalous

political condition. It is to be hoped that those portions of two of the

Southern tribes, which in that event will present the only remaining

difficulties, will realize the necessity of emigration, and will

speedily resort to it. My original convictions upon this subject have

been confirmed by the course of events for several years, and experience

is every day adding to their strength.

That those tribes can not exist surrounded by our settlements and in

continual contact with our citizens is certain. They have neither

the intelligence, the industry, the moral habits, nor the desire of

improvement which are essential to any favorable change in their

condition. Established in the midst of another and a superior race,

and without appreciating the causes of their inferiority or seeking to

control them, they must necessarily yield to the force of circumstances

and ere long disappear. Such has been their fate heretofore, and if it

is to be averted--and it is--it can only be done by a general removal

beyond our boundary and by the reorganization of their political system

upon principles adapted to the new relations in which they will be

placed. The experiment which has been recently made has so far proved

successful. The emigrants generally are represented to be prosperous

and contented, the country suitable to their wants and habits, and the

essential articles of subsistence easily procured. When the report

of the commissioners now engaged in investigating the condition and

prospects of these Indians and in devising a plan for their intercourse

and government is received, I trust ample means of information will

be in possession of the Government for adjusting all the unsettled

questions connected with this interesting subject.

The operations of the Navy during the year and its present condition are

fully exhibited in the annual report from the Navy Department.

Suggestions are made by the Secretary of various improvements, which

deserve careful consideration, and most of which, if adopted, bid fair

to promote the efficiency of this important branch of the public

service. Among these are the new organization of the Navy Board, the

revision of the pay to officers, and a change in the period of time or

in the manner of making the annual appropriations, to which I beg leave

to call your particular attention.

The views which are presented on almost every portion of our naval

concerns, and especially on the amount of force and the number of

officers, and the general course of policy appropriate in the present

state of our country for securing the great and useful purposes of naval

protection in peace and due preparation for the contingencies of war,

meet with my entire approbation.

It will be perceived from the report referred to that the fiscal

concerns of the establishment are in an excellent condition, and it is

hoped that Congress may feel disposed to make promptly every suitable

provision desired either for preserving or improving the system.

The general Post-Office Department has continued, upon the strength of

its own resources, to facilitate the means of communication between

the various portions of the Union with increased activity. The method,

however, in which the accounts of the transportation of the mail have

always been kept appears to have presented an imperfect view of its

expenses. It has recently been discovered that from the earliest records

of the Department the annual statements have been calculated to exhibit

an amount considerably short of the actual expense incurred for that

service. These illusory statements, together with the expense of

carrying into effect the law of the last session of Congress

establishing new mail routes, and a disposition on the part of the head

of the Department to gratify the wishes of the public in the extension

of mail facilities, have induced him to incur responsibilities for their

improvement beyond what the current resources of the Department would

sustain. As soon as he had discovered the imperfection of the method he

caused an investigation to be made of its results and applied the proper

remedy to correct the evil. It became necessary for him to withdraw some

of the improvements which he had made to bring the expenses of the

Department within its own resources. These expenses were incurred for

the public good, and the public have enjoyed their benefit. They are now

but partially suspended, and that where they may be discontinued with

the least inconvenience to the country.

The progressive increase in the income from postages has equaled the

highest expectations, and it affords demonstrative evidence of the

growing importance and great utility of this Department. The details

are exhibited in the accompanying report of the Postmaster-General.

The many distressing accidents which have of late occurred in that

portion of our navigation carried on by the use of steam power deserve

the immediate and unremitting attention of the constituted authorities

of the country. The fact that the number of those fatal disasters is

constantly increasing, notwithstanding the great improvements which are

everywhere made in the machinery employed and in the rapid advances

which have been made in that branch of science, shows very clearly that

they are in a great degree the result of criminal negligence on the

part of those by whom the vessels are navigated and to whose care and

attention the lives and property of our citizens are so extensively

intrusted.

That these evils may be greatly lessened, if not substantially removed,

by means of precautionary and penal legislation seems to be highly

probable. So far, therefore, as the subject can be regarded as within

the constitutional purview of Congress I earnestly recommend it to your

prompt and serious consideration.

I would also call your attention to the views I have heretofore

expressed of the propriety of amending the Constitution in relation to

the mode of electing the President and the Vice-President of the United

States. Regarding it as all important to the future quiet and harmony

of the people that every intermediate agency in the election of these

officers should be removed and that their eligibility should be limited

to one term of either four or six years, I can not too earnestly invite

your consideration of the subject.

Trusting that your deliberations on all the topics of general

interest to which I have adverted, and such others as your more

extensive knowledge of the wants of our beloved country may suggest,

may be crowned with success, I tender you in conclusion the cooperation

which it may be in my power to afford them.

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