Evansville Journal, Volume 11, Number 50, Evansville, Vanderburgh County, 13 December 1845 — Page 2

froi wh U3 a e to thi an in in as

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1S27. for tha security of dur rights and Ihe government and protection of our citizens in Oregon,- Thai it will ultimately he wise 'and proper to make liberal grants of land to the patriotic pioneers, whoy amidst privations and dangers. lead the ivay through savage tribes inhabiting the vast wilderness intert vonlcg between our Frontier settlements and Oregon; and who cultivate , and vare ever ready to defend the soil. I am fully satisfied. .- To doubt whether , they will obtain such ' grants as soon as the convention , between ..the Uiiited States and Great Britain shall havo ceased to exist, would be to doubt the ' justice of Congress; but pending the year's notice, it is worthy of consideration whether a stipulation to this effect - may be made consistently with the spirit of that convention.: . : . . . " .- The recommendations which I have made as to the lH manner of securing our rights in Oregon, are submitted to Congress with great deference. : Should they, in their wisdom, devise any other mode better calculate to accomplish the same object, it shall meet with my hearty concurrence. ,i At the end of the year's notice, should Congress think it proper to make provision for giving that notice, we shall have reached a period when the National rights in Oregon must either ba - abandoned or firmly maintained. That they cannot be abandon- . ed without a sacrifice of both National hon-

. or and interest, is too clear to admit of doubt. Oregon is a part of tho North American continent, to which, it is confidently affirmed, the title of tho United States is the best , now in existence. For the grounds on which that title re ts, f refer you to the cor- . respondence of the late and present Secre- , tary of State with the British plenipotentiary -during the negotiation The British prop. . osition to compromise, which would make .; the Columbia the line south of forty-nino degrees with a trifling addition of detatched , territory to the United Strtes north ot that river, and would leave on the British side : two-thirds of the whole Oregon territory, including the free navigation of the Columbia , andall the valuable harbors on the Pacific, " can never, for a moment, be entertained by the United States, without an abandonment of their just and clear territorial rights, , their own self-respectj and tho National hon- , or. For the information of Congress, I communicate herewith the correspondence which took place between the two Governments during the late negotiation. The rapid extension of our settlements over our Territories heretofore unoccupied, , the addition of new States to our Confederacy, the expausion of frea principles, and our rising greatness as a nation, are attracting the attention of the Powers of Europe, and lately the doctrine ha beer broached in some of them ef a "balance - of power" ' on ,. this continent, to check our , advancement. The United States, sincerely,' desirous of preserving relations of good understanding with all nations, cannot in silence permit any European interference on the North American continont; and, should any such ' tnterference be attempted, will be ready to resist tia.f-a.uy uuuau uuiatwk It is well known to the American people, and to all cations, that .this Government has xiever interfered with the delations subsisting between other Governments- We have nev- , et made ourselves parties to their wars or , their alliances; we have not . sought their lerritories by .conquest: we have not mingled .with parties in their domestic struggles; and ; believing our own form of Government to be tha best, we have never attempted to propagate it by intrigues, by " diplomacy, or by force. "We may claim on this continent a : like exemption from Europe Interference. . The nations of America are equally sovereign and independent with those of Europe; .they profess the same rights, independent of an loraign interposition, to maks - war, ' to conclude peace, and to regulate their internal affairs. : The people of the United States cannot, therefore, view with indifference attempts' of European Powers to inter- . fero with the indspendent action of the nationsof this continent. The Ahierican system of Government is entirely different from that of Europe. Jealousy among the different sovereigns of Europe, Jest any one of them might become toopowerfull fur the rest, has caused them anxiously to desire the establishment ef what they term the "balance of powers." It cannot be permitedsto haveany application on the N. American continent, aud especially to the United States. We must ev er maintain tho principle, thnt the peep.eof tniS continent alono have tne right 'to decide their owq destiny Should any portion ci them, constitatingf an independent gSiato, propose to unito -themselves with our confederacy, this will be a question for them .and usio determine, without- any foreign Interposition. " We can never consent that European Powers shall interofero to prev ntsuch a union because it might distutb the "balance of power" which they may desire to maintain upon thid'eontinent. Near a quarter of a century ago, the principle was - distinctly announced to the world, in the , annual message ot ono of my predecessors, that "the American continents, by "the free and independent conditiqn which they have assumed, and maintained, are henceforth ;not to be consineredas subjects for further colonization by . any European power." , . This principle will apply with greatly increased force should anp European power attempt to establish any new colony in North America. . In the existing circumstances of the world, the present is deemed a proper occasion to, reiterate and reaffirm the principle avowed by Mr. Monroe, and to state rny cordial concurrence ju its wisdom and sound policy. The reassertion of this principle, ejpecially.'itv reference to North Am erica, is at this day hul the promulgation of a poucy which no, L.uropaan power should .cherish thetllsposition to resist- Existing fights of evecy. European naticm should be respected; but 'it is due alike to our safety end our interests, that tho efficient protec- ; tioa of our laws should be, extended over our whole territorial limitst and that it should bo distinctly announced fu the world as our setllcd policy, that no future European colony or dominion thall, with our consent, he planted or established on any part ofthe North American continent. . - .

A question has recently arisen under the tenth article of the subsisting treaty between tho United State? and Prussia. By thuarticl, the consuls of the" two couutnes have had the right to sit as judges and arbitrators in such difference as may arise betwoen the captains and crews of tho vessels belonging to the national whose interests are committed to their change, without the interference of the local authorities, unless the conduct of the crews or of the captains should disturb the order or tranquility , of the country, the said consuls should require their assistance to cause their decisions to bo carried into effect or supported. The Prussian consul at New Bedford, in June, 1844, applied to Mr. Justice" Story to carry into effect a decision made by' him between the captain and crew of tho Prussian ship Borussk.; but the request was refused on tho ground that, without' previous legislation by Cocgress, tho iudicary did not

posses power to givo effect to this article of the treaty. The Prussian Uovernment, through their minister here, havo complained of this violation of the treaty," and have asked the Government of the United States to rdopt the necessary measdres to prevent simitar, violations hereafter- 3ood faith to Prussia, as well as to other nations with whom we have similar treaty -. stipulations, requires, that these should be faithfully ob served. I havi deemed it proper, therefore, to lav tho subject before Congress, and to recommend such legislation as may be necessary to give effect to these 'treaty obligations. . .- - 1 N By virtue of ah arrangement made be tween the Spanish government and that of the United States m December, 1831 Amer ican vessels, since the twenty-ninth of April 1832, have been admittod tj entry in the ports of Spain, including those of the Bal earic and Canary Islands,1 on payment of the same tonage duty ot five cents per ton, as though they had been Spanish vessels; aod this, whether our vessels arrive in Spain directly from the United States, or indirectly from any other country. When Congress, by the act of the twentieth of July, 1832, gave effect to this - arrangement betwoen the two governments, they confined the reduction of tonnage duty merely to Spanish vessels "coming from a port in Spain,1' leaving tha former discriminating duty to-remain against such vessels coming from a port in any other country. It is manifestly unjust that, whilst Aroericanyossels, arriving in the ports of Spain from other countries, pay no more duty than Spanish vessels, Spanish vessels arriving in the ports of the United States from other countries should be subjected to heavy discriminating tonnage duties. This is nei ther equality nor reciprocity, and is in violation of the arrangements concluded in Decembor, 1831, between the two countries. The Spanish Government have made repaited and earnest remonstrances against the inequality, and the favorable attention of Congress has been several times invoked to the subject by my predecessors. I recom mend as an act of justice to Spain, that this ineauahlv be removed bv Cono-mas. nnH xuai we aiscriminaung auues wnicti nave been levied under the act of tha thirteenth of July, 1.832, on Spanish vessels coming to the Umtnd States, from any other foreign country, he refundod. This recomme ndation does not embrace Spanish vessels arriving in the United States from Cuba and Portro Rico, which will stitt sermin subject td thq provisions of the act of Jaiie,thirtiethi 1834 concerning tonnago duty on such vessels. By the .act ottha 14th of July, 1832, coffee was exempted from, duty altogether.-., This exemption was universal, without reference to the country where it was produced, or the national character of the vessel in which it was imported. By the tariff act of the 30rh T August, 1842, this exemption from duly was' restricted to eoflee imported in American vessels from the place of its production; whilst coffee imported under all other circumstances was subjected to a duty of 20 per1 cent, ad valorem. Under this act', and our existing treaty with the King of the Netherlands, Java coffee imported irom the European ports of that kingdom ino the United Stales, whether inf.Dutch of American vessels, now pays this rate of duty- -The Government of the Netherlands complains that. such a discriminating duty should have been imposed on coffee, the prod notion of one of its colonies, and which is chiefly brought from Java to ports of that kingdom, and exported from thence to - foreign countries. Our trade with the Netherlands is highly beneficial to both countries, and our relations with them have ever been of the most iriendly character, . Under all circumstances of the case, I recommend that this discrimination should be abolished, and that the coffee of Java imported from llie Netherlands be placed upon ihe same footing , with that imported directly from Brazil and. other countries where it is produced. ' - .Under ths eighth section of the tariff act of the 30th of A ugus', 1842, a duty of 15 cents per gallon . was imposed on Port wine in casks ... i. : ! .i. i ' . . nunc, um me reu w ines oi several coumnes, wneu iinporieu in casss, a auty ot only 6 cents per gallon was imposed. This discrimination. so lar as regarded tlie i'ort wine ot rrtUgal, was deemed a violation of our treatv with thnt Power, which provides that "no higher or other uuues snan oe imposed on tne importation jnto the United States of America of any article the growth, produce, or manufacture of the kingdom anu possessions 01 i ormgai, man such are or shall be payable on the like articleteing me gru win, proouce,or manuiacture ol any oil) er foreign country,- ' j Accvrmngiy, 10 give eueci 10 tne treaty, as well as to the intention ot Congress, expressed in a proviso to the tariff act itself, that nothing therein contained thould be so construed as to interfere with subsisting treaties witli foreien nations, a .'treasury circular was issued on the 16th of July, 1844, which among other things, ucuiaieu me uuiy on trie ror; wine ol t ortugal, in casks, under the existing laws and treaty, to ue bi eius per gallon, and directed that the cjL.bcaavi uuues wnicn nave teen collected on sucn wine should be refunded. Bv-virtue of another clause to the same section of the actj it is provided that all imitations of port, or any other wines, "shall be subject to the duty provided for the genuine article." Imitations of Port wine, the .production of France, are imported to some extent into the United States: and the Government of that, country now claims that, under a correct construction of the act, these imitations ought not to pay a higher duty than that imposed upon the original Port wine ol Portugal. It appears to me to be unequal and unjust, that French imitations of Port wine should besubjected to a duty of 15 cents, while the more valuable article from Portugal should pay a duty, of 6 cents-per gallon. 1 therefore recommended to Congress such legislation as uiay.be necessary to correct the inequality. the late ireai.ient in his annual message of December last, recommended au appropriation to satisfy theclaims ofthe Texan government against the U S., which had been previuuoly adjusted, au far as the cowers ofthe Executive extend. These claims arose " out of the act o disarming a body of Texan troops under the

command ef Major Snivley, by an officer m the eervice of tha United Stetes, acting under the ordersof our Government, and the forcible ntry into the custom house a't Brayerly's funding on Red river, by certain citizens of the U,. S.; and taking away therefrom the goods seized by the collector of the chetoms aa forfeited under the laws of Texas. This was a, liquidated -debt, ascertained to be doe to Texas when an Independent Stat?. Her acceptance of the terms ol annexation proposed by the United States does not discharge or invalidate the claim. I recommended that provisionbe made lor its payment. The commissioner appointed to China daring the special session ofthe Senate in March last, shortly afterwards set out on his mission in th,e U.S. ship Columbus. On arriving at Rio de Janeiro on his passage, the state of his health

had become so- critical, that, bv the advice of his medical attendants, he returned to the U. S. early in the month of Oct. last.- - Commodore Biddle, commanding the East fndia squadron, proceeded on his voyage in the Columbus and was charged by the commissioner with the duty of exchanging with the prop. er authorities the ratifications of the treaty lately concluded with the Emperor of China. Since the return of the commissioner to the U. S. bis health-has been much improved, and he entertains the confident belief that he will soon be able to proceed on his mission. ' Unfortunately differences continue" to exist among" some of "the nations of South America, which, following our example, have established their independence, ;whilejin others internal dissensions prevail. It is natural iho.t our sym pathies should be warmlyjenlisted for their wel fare; that we should deeire mat ail controversies between them should be amicably adjusted and their Governments administed in a manner to protect the rights and promote the prosperity of their people. It is contrary, however, to our settled policy, to interfere in their controversies w hether external or internal. , I have thus adverted to all the subjects con nected with our loreign relations to which 1 deem it necessary to call your attention.. -Our policy is not only peace with all, but eood will towards all the powers of the earth . While we are just to all. we require that all should be just UuU3. Excepting the differences with Mexico and Great Britain, our relations with nil civilized nations are of the most satisfactory character. It is hoped that in this enlightened age, these differences may be amicably adjusted. . The Secretary of the Treasury in his annual report to Congress, will communicate a full statement of the condition of the finances. The improta for the fiscal year ending on the 30th of June last, were ot the value ot one hundred and seventeen millions two hundred and fifty-four thusand five hundred and sixty-four dollars; of which the amount exported was 15,J46,J.1U dollarsleaving a balance 101,970,734 dollaisfor domestic consumption . . -"" ' " The exports for the same year were of the value of 114,646,606 dollars; of which, the amount of domestic articles was 99,299,776 dollars. The receipts into the Treasury during the same yerwere $29,769,135 56; of which there were derived .from fccustoma $27,538,1 12 70; from sales of public lands, $2,077,022 30; and irom incidental - and miscellaneous sources $163,998 5G. The expenditures for , the same deriod 'vere $22,068,206 98; of which $8,538v167 OX were appllied to the payment of the public debt. The balance in the Treasury on the first of July last, $7,658,306 22, . v The amount ofthe public debt remaining unpaid on the first of October last was seventeen millions seventy-five thousand four hundred and forty. five dollars and fifty-two cents. Further payments of the pubiic debt would have been made, in anticipation ofjthe t period of its re imbursement under the authority conferred up on the Secretary of the Treasury by tho acts of July 31st, 1841, and of April 15th, 1842. and of March 3d, 1843. had not the unsettled state ol our relations with Mexico menaced hostile collision with that power. In vie w of such a contingency. It Was accmioa w.uj -. x the treasury an amount unusually large for or dinary purposes. ' A few years . ago, our whole national debt growing out of the Revolution and war -of 1812 with Great Britain was extinguished, and we presented to the world the rare and noble spec tacle ol a great and growing people, who had fully discharged every obligation. Since that time, the existing dbt has been contracted, and smalt as it is in comparison with the similar bur dens ot other nations tt should be extinguished at ihe earliest practicable period.' - Should the state ofthe couutry permit,and especially .our foreign relations interpose no obstacle, it ia contemplated to apply all the moneys in the treasury, as they accrue beyond what is required for the appropriations by Congress, to its liquidation. I cherish the- hops ot soon being able to congratulate the country on its recovering once more the ioity position which it so recei.tlv occupied. Uur country, which ex hibits to the world the benefits of self govern ment, in developing all the sources of national prosperity, owes to mankind the permanent ex ample of a nation free from the . blighting influ nee ot a public debt. The attention of Congress is invited to the im portance of making suitable modifications and reductions of the rates' ot duty imposed by our present tarin laws, ineoojectoi imposing du ties on imports slioulJJJbe to raise revenue to pay the necessary expanses of Government. Congress may, undoubtedly, in the exercise of a sound discretion, discriminate in arranging the rates of - duty on different articles; but the -j: : : .? i t s i . uiHciinnnationB snouia De wunin tne rcvinue standard, and be made with a view to raise money for the suprjort of Government.- J It becomes important to understaad distinct ly what is meant by a revenue standard, the maximum ol which should not be exceeded in the rates of duty imposed. It is conceded and experience proveB, that duties may be laid so high' as to diminish or prohibit altogeth the im portation of any given article, and thereby leg sen or destroy in some degree the revenue which at low rates, would by derived trorn its imnorta tion. : c l j...- i .1 . oucn auues eiceea ine revenue rates, fe are not imposed to raise money for the support oi Urovernment.- It Congress levy a duty for revenue of one per cent, on a given articlo, it will produce a given amount of money to the Treasury, and will incidentlly and neces sarily arlord protection or advantage to the a mount of one per cent, to the home manufactu rer ot a similar or like article over the importer. If the duty be raised to ten per cent, it will produce a greater amount of money, and afford greater protection. If it be still raised to 20. 25 . . r OA . . ...j :r . . . ' i ttui., aim ii as ii is raised, the rev. enue aeriveu irom it is tound to be increased, ... Pmicvuuii vr nuvKiuage win also De increased; but if it be raised to '31 per cent., and it is touna mat tne revenue produced at that rate is less tnan at per cent, it ceases to be a reven ueuuiy. ine precise point in the ascending v.io ui uuues oi wuicu n is ascertained from experience that the revenue ie greatest, ig the maximum rate ol duty which can be laid lor the bona fids purposed colleeting money for the "rr" v uuveuimeni. a u raise ine duties higher than that point, and thereby diminish the a cuticGicu, is y levy tnem for protection merely, and not forj revenue. As long, then. congress may gradually increase the rate of uuiy on a given article, and revenue is inceased oy sucn increase 01 duty, they are within the revenue standard. When they go beyond that rn"i 03 mcjr muieastj me uuues, the revenue is diminished or destroyed, the act ceases to have for its object the raising of money to support Government, but is for protection mereft. does not follow that Congress should levy the highest duty on all articles of import which they will bear within the revenue standard ; -tor such rates would probably produce a much i'rT. er amount than the economical admini. tr.fi,,,. ofthe Government would require.' Nor does it ioiiow mat duties on all articles should be the same or a horizontal rate.' Some-a rticl PA will bear a much higher revenue duty than othnra Below the maximum of the revenue standard I Congress may and ought to discriminate 9 ' in the rates iniDoaed. tikinu par an m

tliem on different articles aa to produce th e ag

gregate amount, which, when added tothe proceeds of sal es of public, lands, may be needed to pay the economical, expenses of the, Governinenu- : . - . la levying a tariff of duties," Coneress exer cises the taxing power, and for purposes of rev enue may seteci ine oDjects oi taxation, l ney may exempt certain articles altogether, and permit their importation free of duty. On others they may impose low duties. In these classes should be embraced such articles of necessity aaare in general use', and especially such as are consumed by the" laborer and the poor, as well as by the wealthy citizen. Care should be . taken that all the great interests of the country, including manufactures, agriculture, commerce navigation, and the mechanic arts, should as far as maybe practicable, derive equal advantages trom ine incidental protection which a just system of revenue duties may afford, j Taxation, direct or indirect, is a burden and should be so imposed as to operate aa equally as may be on all classes in proportion to their ability to bear it. To make the taxing power. a benefit to one class necessarily increase the burdens beyond their proportion, and would De manifestly unjust The terms "protection to domestic industry" are of popular, import; but they should apply under a just system to all the various branches ol industry in ourcountry. ihe farmer or plan ter who toils yearly in his fields, is engaged in "domestic industry," and is as much entitled to have his labor "protected" as the manufacturer, the man ot commerce, the navigator, or the ma chanic, who. are engaged also ia "domestic in dustry "in their different pursuits. The joint taoorsoi all these classes constitute the aggre gate of the "domestic industry ofthe country,' and they are equally entitled tojthe nation's proa tection. ' No one ot them can justly claim to be the exclusive recipients of "protectionwhich can only. be afforded by increasing hardens on the "domestic industry" of the others. - If these views be correct, it remains to ins quire how far the tariff act of 1842, is consistent with them. 'That many of the provisions of that act are in 'violation of the cardinal principles here laid down all must concede. The rate of daty imposed by it on some articles are prohibitory, and on others so high as greatly to diminish Importations, and to produce a less amount of revenue than would be derived from lower rates. They operate as "protection merely" te one branch of "domestic industry" by taxing other branches, . ' , - - By the introduction of minimums, or assumed and false values, and by the imposition of specific duties, the .injustice and inequality of the the act- of. 1842 in its practical operations on different classes and pursuits are Been and felt. Many of the' present duties imposed by it under the operation et these principle, rauge from I per cent to more than 200 per ceat. - They are prohibitory on some articled, and partially so on others, and bear most heavily on articles of common necessity, and but Jtghtly on articles of luxury. - It is so framed that much the greatest burden which it imposes is thrown on labor and,the poorer classes who are least able to bear it, white it protects capital and exempts the rich from paying their just proportion of the taxation required for the support ot Government. 'While it protects the capital of. the wealthy maufacturer, and increases nts p routs, ii aoes not oeue fit the operative or laborers in, his employment, whose wages have not been increased by it Articles ot prime necessity or coaree'quali ty and low price, used by the masses ol the people, are in many instances, subjected by it to heavy taxes, while articles oi liner quality and -higher price, or of luxury, which can be used only by the opulene, are lightly taxed. It imposes heavy and unjust burdens on the farmer, the planter, the commercial man, and those ol all other pursuits except the capitalist who has made his investments in manufactures. All tho great interests of the country ore not, as nearly as may be practicable, equally protected by it. The Government in theory knows no distincstow upon some, favors and privileges which all others may not enjoy.1 It was the purpose of its illustrious founders to base the institution which they reared upon the great and unchang. ing principles of justice and equity, conscious that'll administered jn the spirit in which- they were conceived, they would be felt only by the benfita which they'diffused, and would Secure for' themselves a defence in the hearts ofthe people, more powerful than standing armies, and all means and appliances invented to sustain governments founded on "injustice and oppression. ' The well known fact that the tariff act of 1842 was passed by a majority of one vote in the Senate, and two in the House of Representatives and that some of those who felt themselves constrained, under the 'peculiar circumstances-existing at the time, to vote in its favor, pro claimed us defects, and expressed their determination to aid in its modification" on the first opportunity, affords strong and conclusive evidence that it was not intended to be permanenr, and of the expediency and necessity of its thorough revision. ,....- "In recommending to Congress a reduction of ihe present rates of duty, and a revision and modification of the act ol 1842, lam far from entertaining opinions nntrieudiy to the roanu iacturers. Un the contrary, l desire to see them prosperous, as far as they can be so with out imposing unequal burthens on other inter ests. The advantage under any other system of indirect taxation, even within the revenue stan dard, must be- in favor ofthe manufacturing in terest; and ot this, no other tnterstwill com plain . . " ' " I recommend to Congress the aboliton of the minimum principle, or assumed, arbitrary,' and false values and ol specihe duties, and the sub stitution in their place of ad valorem duties, as the fairest una most;equitable indirect tax which can be imposed, ; By the ad valorem principle alt articles are taxed according tc their coat or value, and those which are of interior quality or of small cost, bear only the just proportion ol the tax with those which are ol superior quality or greater eost. The articles consumed by all are taxed at tbe same rate. a system of ad valorem revenue duties with proper discriminations and proper guards against Irauus in collecting tnem, ii is not aouoiea,wui afford ample incidental advantages to the man ufacturers, and rnaDie tnem u aerive as great profits as can be derived from any other regular business. It is believed tnat sucn a system, strictly within the revenue standard, will place the manulacturing interests on a sta.oie tooting and Inure to their permanent advantage ; while it will, as may be practicable, extend to all the great interests 01 tne country tne inciaeniai pro tection which can oe anoraea oy our revenue laws. Such a system, when once firmly established, would be permanent, and not subject to the constant complaints,.agitations, and changes which must ever occur, when duties are not laid for revenue, but for the protection merely' of a favored interest. a- . . In the deliberations of Congress on this sub jeci, it is hoped that a spirit of mutual conces- . ri - . sion ana compromise oeiween connicung interests may prevail, and that the result of their labors may be crowned with the happiest conse quences. Uy the uonsmuiion oi ine untiea states ii is provided that "no money shall be drawn Irom the t reasury but to consequence oi appropria tions made by law." A pub'ic treasury was undoubtedly contemplated and intended to be created, in which the public money should be kept from the period ot collection until needed for public uses. In the collection and disburse ment of the public money no agencies have ever been employed by law, except such as were ap pointed by the Government, directly responsible j I : ...... I 'I ' I. - J" , : f IO ii, inu uuuer i is cuuuui. x uo eaie neeping ui the pnblic money should be confined to a public treasury, created by law, and under like res ponsibility and control. It is not to be imagin-. ed thut the franiers of the Constitution could have intended that a treasury should be created as a place of deposits and sale keeping of the ublic money which was irresponsible to the Government. The first Congress under the

Constitution, by the act of the 2d of September,

1789. "to establish the 1 reasury Department, provided for the appointment of a treasurer,and made it his duty, to receive and keep the monfes of tha U. .," and -'at all times to submit to the Secretary of the Treasury aq d the comptroller, or either of them, the inspection of the moneys in his hands." That banks, National or State, could not have been intended to be used as a substitute for the treasury spolten of in the Constitution's keepers of the public money, is manifest from the fact that, at that time, there was no National Bank., and but three or four State Banks of Jimited capital existed in the country. Their employment as depositories -was at first resorted to, to a limited extent, but with no avowed intention of continuing .them permanently, in place of the treasury ofthe Constitution. When they' were afterwards from time to time employ ed, it was trom motives of supposed convenience." '.- Our experience has shown that -when banking corporations have been the keapprs of public money, and been thereby made in effect the treasury, the Government can have no guaranty that it 'ean command the use of its own money for public purposes. The late Bank of the U.S. proved to be faithless. The State banks which were afterwards employed ' were faith less: But a few, years ago, with million') of public m oney in their keeping, the Government was brought almost to bankruptcy, and the public credit serionsly impaired, because of their inability or indisposition to pay, on demand, to the public creditors, in the only currency recog-i nised by the Constitution. Their failure oc curred in a period of peace, and great inconve nience'and loss were suffered by the public Irom it. Had the country been involved in a foreign war, that inconvenience and loss won Id have been much greater, and might have resul ted in extreme public calamity.-- 1 he public money should not be mingled with the private funds of banks or individuals, or be used for private purposes. When it is placed in banks for safe keeping, it is in effect loaned to them without interest, and is loaned bythem upon interest to borrowers from them. , The public money is converted into banking capital, and is used and loaned out tor the private profit of bank stockholders; and when call ed tor, las was tne case in itsj,) it may oe in the possession of the borrowers trom tile banks, instead ot being in tne public treasury content plated bv tbe constitution. ' The framers of the constitution could never have intended that the money paid into the treasury should be thus converted to private use, and placed beyond the control of the government. At present, State Banks are employed as de positories, but without adequate regulation ol law, whereby the public money can be secured against the casualittes and excesses, revulsions, suspensions, and defalcations, to which from over issues, overtrading, and inordinate desire' for gain, or other causes, they are constantly exposed. The Secretary basin all cases, when it was practicable, taken collateral security for the amount which they hold, by the pledge ol stocks ot the U. S., or such of the States as were in good credit. Some ofthe deposite banks have given this description of security, and others have declined tcf do so. - Banks which hold the public money are often tempted, by a desire of gain, to. extend their loans, increase their circulation, ami thus stimulate, i I not produce a spirit of speculation and extravagance, which sooner or late must result in ruin to thousands. It the ' public money be not permuted to be thus used, but be kept in the treasury and paid out to the public creditors in gold and silver, the temptation afforded by its deposite with banks to an nndue expansion of their business would be cheeked, while the amount of the "constitutional currency left In circulation, would be enlarged by its employment in the public collections and disburse ments, and the banke themselves would in con sequence be found in a safer and sounder condition. . r tiujiinor ihe oninion thit-i'the f epiraUoD of the moneys of the Government Irom batiking institutions is indispensable for the safely of the funds ot the Government and the rights of tbe people," I recommend to Congress that provision be made by law for such separation, and that a constituiional treasury be created for the sate keeping of the publio money. I be consti lunonai treasury recommended is dosigned as a secure repository forthe public money, without any power to make loans or discounts, or to issue any paper whatever, as a currency or circu lation. 1 cannot doubt that such a treasury as was contemplated by the constitution should be independent of all banking corporations. Tbe money of the people should be kept in the treasury of the people created by law, and be in the custody of agents of the people chosen by themselves, according to the . forms of the constitution; agents who are directly responsible to the Government, who are under adequate bonds and oaths, and who are subject to severe punishment for anV embezzlement, private-use, or mis application of the publio tunds, and lor any failure in other-respects to perform their duties. To say that ihe people or their Govprnmei.t arc incompetent, or not to be trusted with the custody of their own niOney, in their own treasury. provided' by themselves, but must rely on the presidents, cashiers and stockholders of bank ing corporations, not appointed by them nor re sponsible to them, would be to concede that they are incompetent forself government.. In recommending the establishment of a constituiional treasury, in which the publio money shall bo kept, I desire- that adequate provision be made by law for lis safety, and that all Executive discretion or control over it shall be removed except such as may be necessary in directing its disbursement in pursuance of appropriations made by law. Under out present land system, limiting tho minimum price at which the public lands can be entered to ono dollar and twenty five csnts per acre, large quantities of lands of inferior quality remain unsold, because they will not command that price. From the records of the Gen eral Land Office it appears, that, ofthe public lands remaining unsold in the several States ami Territories in which they are situated, thiity nine bullions one hundred and five thousand rive hundred and se venty seven acres have been in market, subject to entry more than 20 years, 49,b3S,44 acres for more than "ten vears; snd lUb,l2b,ybI acres for more than five years.. Much the largest por tion of these lands, will eomiuue to be unsalea ble ot the minimum price at which they areper milted to be sold, so long as large territories of lan ds from which the more valuable portions have not been seclected are annually brought into market by the Government. With the view to ihe sale and settlement of these inforior lands I recommend that the price be graduated and reduced below the present minimum rale, conn ning the sales at the reduced prices to settlers and cultivators in limited quantities. If gradu ated and reduced in price, lor a limited term, to one dollar per acre, and alter the expiration ol Uiat period for a second and third term to lower rates, a large portion ol these lands would be purchased, and many worthy citizens who are unable to pay higher rates, could purchase homes for themselves and their families. By adopting the graduation uhd reduction ol price these interior lands will; be sold lor their real value, while the Stales in which they lie will be fieed from the inconvenience, if not injustice. to which they are subjected, in consequence ot the U. States owning large quantities of public lands within tbeir borders, not liable to taxa tion for the support of 'their- local governments. I recommend the continuance ol the policy of granting pre-emptions, in its most liberal extent to all those who have settled, or may hereafter settle, on the public lands, whether surveyed ot uueurveyed, to winch the Indian title may have been extinguished at the time of settlement. It has beei: lound by exprrieuce, that in consequence of combinations of purchasers and other causes, a very email 'quantity of public lands when sold at pubiic auction, bring a higher price than the minimum rate established by law. The eettlers on the public lands are, however, but rarely able lo secure their' homes and im provements at the public sales at that rate, be-'

causo these combinations, by means of the capitaljthey command, and their superior ability to

purchase, render it impossible lor tne seiner u compete with them in the market. By putting down ail competition these combinations of capitalits and speculators are usually enabled to purchase the lands, including the improvements ol the settlers, at the minimum price of the gov ernment, and either turn them out ot their homes or extort from them, according to their ability to pay, double or quadruple the amount paid for them to the government. , It is to enterprise and perseverence of the hardy pioneers of the West, who penetrate the wilderness with their families, suffer the dangers, the privations and hardships attending the settlement of a new country, and prepare the way for the body of emigrants who, in the course of a few years, usually follow them, that we are, in a great degree, indebted forthe rapid extension and aggrandizement of ourcountry. Experience has proved that no portion of our population are more patriotic than the hardy .fie brave men of the frontier, or more ready to obey the call of their country, and to defend her rights and her honor, whenever and by whatever enemy assailed.. They should be protected from the grasping speculator, and secured at the minimum price ol the public lands, in the humbla homes which they have improved by th.r labor. With this end in view, all vexatious or unnecesary restrictions imposed imposed upon them by the existing pre-emption laws, should be repealed or modified. It is the true policy of thegovernment to afford facilities to its citizens tobecome owners of small portions of our public domain at low and moderate rates. . The present system of mauaging the mineral lands ofthe U. States, is believed to be radically defective. More' than a million of acres of the public lands supposed to' contain lead and other minerals, have been reserved from sale, and numerous leases upon them have been granted -to individuals upon stipulated rent. The system, of granting leases has proved to be not only un profitable to the government, but unsatisfactory to tbe citizens who- have gone upon the lands,and must if continued, lay tho foundation of much futnre difficulty between the government and the lessees. According to the official records, the amounts of rents received by tbe governments for the years 1841, 1842, 1813, and 1844, was $6,334 74, while the expenses of the ystem during the same period, including salaries of superintendents, agentj, clerks, and incidental expenses, were $-26,11 1 1 1 the income" being less than one fourth of tbe expense. Tothis pecuniary loss may be added the injury sustained by the public ia consequence oi tha destruction of timber, - and the careless and wasteful manner of working the mines. . The system has given rise to much litigation between the U. Statea and. individual citizen?, producing irritation and excitement in the mineral region, and involving the government in heavy additional expenditures. -It is believed that similar losses and embarrassments will continue to occur while the present system of leasing these lands remains unchanged. These lands are now under the superindence and care . of the War Department, with Iheordinary duties . of which they have no proper or natural connexion. 1 recommend the repeal of the present system, and that these lands be placed under the superintendence and management of the General Land Office, as other public lands, and . be brought imo market and sold on such terms as Congress in their wisdom may prescribe, reserving to the government an equitable percenage of the gross amount of mineral product, & that the pre-emption principle be extended to resident minors and settle rs upon them, at the . minimum price whieh may be established by Congress. - - I refer you to the accompanying report of the Secretary of War for information respecting the present situation of the army and its operation during the past year; the state of our defences; the condition of the public works; and our relations with the various Indian tribes within our limits or Upon our borders. I invite your attention to the suggestions contained in thai report, m relation to these prominent object of national interest. Whan orders were given during the last summer for concentrating a military force on the western frontier of Texas, our troops were widely , dispersed, and in small detachments, occupying posts remote from each other. Tho prompt and expeditious manner in which an army, embracing more than half our peace establishment, was drawn together on an emergency so sudden, reflects great eredit on the officers whJ were entrusted with the execu tion of the orders, as well as upon dicipline of the army itself. "To be in strength to protect and defend the people anJ territory of Texas, in the event Mexico should commence hostilities, or invade her territories with a large force, which she threatened, I authorised the General assigned to the command of the army of occupation tu make requisitions for additional forces from several of the States nearest the Texian territory and which could most expeditiously furnish them, if, in his opinion a larger lorce than that under his command, and the auxiliary aid, which, under like circumstances, he was authorised to receive from Texas, should be re quired. The contingency upon which ihe exercise of this authority depended, has not occurred. The circumstances under which the two companies of Slate artillery from the city of -New Orleans were senhinto Texas, and muskered into the service of the U. States, are fully riated in the report of the becretary ot vvar. 1 recommend to Congress that provUion bo ' made for the payment of these troops, us well as a small number of Texan volunteers, wbom the commanding general thought necessary to receive or muster into oof service. During the last summer, the first regiment ef -dragoons made extensive excursions through the Indian country on our borders, a part of them advancing nearly to the possessions of the Hudson's Bay Company .in the .north, and a part nsfaras the South Pass of the Rocky Moun tains and the head waters ot the tributary streams of the Colorado of the west. The exhi bition of this military . force among the Indian tribes in those regions, and the councils held with them by the commanders' of :he expeditions, it is believed will have a salutary influence, restraining them from hostilities among themselves, and maintaining friendly relations between them and the United States. An interesting account of one of these excursions ac companies ihe-report of the Secretary of War. Under the directions of tbe War Department, Brevet Captain Fremont, of the corps of topographical engineers, lias been employed since 1843 in exploring the country west of the Mississippi, and beyond the Rocky mountains. Two ' expeditious have already been brought to close ; and the reportsof that scientific and enterprising officer have furnished much interesting and valuable information. He is now engaged in a third expedition; but it is expected that this arduous service will be completed in season to en ' able ine to communicate the result to Congress at the present session. Out relations with the Indian tribes are of a favorable character. The policy of removing to a country designed for tbeir permanent residence, "west of the Mississibpi, and without the . limits of the organized States and territories, is better appreciated by them than it was a few years ago; while education is now attended to, and the 'habits of civilized life are gaining ' ground among them. ; ' Serious difficulties of long standing continue to distract the several parties into which the Cherokee are unhapily divided. The efforts of ihe Government to adjust the difficulties betweeti them have heretofore proved unsuccess ful and there remains no probability that this desirable object can bo accomplished without the aid of further legislation by Congress. I will, at an early period of your session, present ' the subject for your consideration, accompanied ;. by an exposition of the complaints and claims ol. the several parties into which the nation is divided, with a view to the adoption of such measures by Congress as may enable the Exec- " uii ve to do jusiice to them respectively, and to. put an end, if pofsi'ile, to the disseution which ; have so long prevailed and still prevails among merit. -