Speech Transcript:

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 North East
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.

Not withstanding 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 1831-07-04 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 6 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 1833-02-02.
By the act of Congress of 1832-07-13 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 5 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 1833-03-23, 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.

Not withstanding 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
their 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 6th
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 1832-12-06, 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 1832-07-13 the
tonnage duty on Spanish ships arriving from the ports of Spain
previous to 1817-10-20, 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 he vessels
of the two nations. Pursuant to that arrangement, which was carried
into effect on the part of Spain on 1832-05-20, by a royal order
dated 1832-04-29, 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 repayments 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 2 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 1833-02-04 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 relation 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
1830-03-28 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 under-gone 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 stattes 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 ratification, 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, in as much 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 sea men. 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 $3,0900,000. 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 to pay off in the course of the present year the residue of
the exchanged 4.5% stock, redeemable on 1834-01-01. 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 4.5% stocks 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, been 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 1832-03-04, 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 1834-01-01 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 memory 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 on 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 charger 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 how
ever 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 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,
not withstanding, 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 duties which upon the sea-board and the
in-land 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 remaining E 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, not withstanding the great
improvements which are every where made in the machinery employed and
in the rapid advances which have 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 probably. 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 4 or 6 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.