Vevay Times and Switzerland County Democrat, Volume 4, Number 6, Vevay, Switzerland County, 11 January 1840 — Page 2

AKI> .SmTZJ3iSLAKl> : COUNTY DEMOCRAT;'/

the rcj;orl of I be Secretary of tire Treasury, in | reply to a call-made upon tlml officer by the House j ef Urprcoaiitat'.vrs ;i; the fiet session, requiring I detailed information on the subject of defaults ly , public officers or egents under each Administration, frciq 17S9 toil , rh7.‘ This document will bo submitted to you in a feu* days. The genera! results, (independent of the post office, which is ;kept separately and will be slated by IlFolf,) so | fir 113 ji:cy bear upon this subject, arc, that the | losses which,bare been, and are likely to be, euslialued, by any class of agents, greatest fay banks, including,'as required in the resolution, their depreciated paper received for public dues; that the neat largest have been by disbursing/them, anfflho least by collectors and receivers. If the losses on duty boqds arc included, ahey alonn will be threefold those, by both collectors and receivers. Our whole experience, thcrcibre, futrtlahcs the strongest evi*dcnce that the desired IcgishlttaL of Congress is alone wanting to insure, in iho^operations, the highest degree of 6eciirity arid facility, .Such, to hare been lire experience of oil - er nations. From lire resells of inquiries rnadn by the Secretary of the Treasury in regard to the practice among ificm, I am enabled to state, that i in twenty-two outof twenty-seven foreign Gov - |crnincm3,frotn which un'dcmUcd ioffimmlioii has jbeco obtained, 1 the public moneys are kept in charge of public officers,. This concurrence of iopinion'' in' favor of that eystem is perhaps as .great as exists on aby question of internal administration. ‘ \ In the modes «f business and official restraints on disbursing officers, no legal change.was produced by the suspension ofipecie payments! The report last referred to wjj) be found lo contain, also, much useful information-in relation to this subject. ■' - ■ 1 have heretofore assigned to Congress my reaeons for believing that the establishment of hit ludcpcndcotNalioaahTrcaaury, as contemplated by the Constitution, is necessary to thp safe action of tho Federal Government- - The suspension of'spec/c paymeuk in l£f*7, by the banks having, tboicustody pfrjre public moneyshowod intfo alarming a degree our independence on-those institutions ffir tire performance of duties required by linvthjt l<I:en recommend tire entire dissolution’) of that connexion. -This, recommendation haa been subjected, a» : I desired it should be, to ccvcfcUcrutjny* and animated discussion; and I olio wf myself to believo that, notwithstanding tire natural diversities of opinion tyluclt.may lo anticipated on all subjects involving sqch‘ important considerations, it has secured in its favor as generaftf concurrence of pdbltc ee mini out os could he expected on one of Eiich raignitude. itocent evenlo bayo also continued to develop new objccllcns to Bitch a connexion;- Seldom- is any bank; tire existing system and ■ practice, aMa tomcc{ t 'on demand, all its liabilities for depisttes and-udies in circulation. It main-, tains specie payments', and transact?a profitable" business, ouly by the confidence of the public in its solvency; aod'wheneyer'this is .destroyed, tho demands of its depositors and noteholders-— pressed’more yapid Jythanit can makocolleciiohs from its'debtors—force it to stop payment. This' loss ofCoiifidepcQ'wiih its conscqticnops occurred in 1831 and afforded the apology of the banks for their suspension. , Tire public then acquiesced in tho | validity of the cxc.uscj, and, while tho State‘Legislatures did not exact from them their rarrciteiTcharlerH, Congress, in accordsueb with the recommendation oftho Executive, -allowed them - time to pay oyer tho public money they held, although compelled to issue Treasury notes lo supply the deficiency thus created. It tow ttppcarahhat there arc other rap lives than a. want of public confidence under which the banka seek to justify themselves in a refusal to. meet their obligations. Scarcely were the country: and Government relieved,-in a degree, from the-difficulties occasioned hy the-general suspension of lS37,.when a partial one, occurring within-thirty months of the former, produced new and serious embanesments, though it had no palliation in such circumstances as were alleged th justification of that which had previously taken place. There v/as nothing in the condition of the country to endanger n-’well managed banking institution; 1 'commerce was deranged by no foreign war; every branch of manufacturing industry was crowned with rich jcwards; and tho more than usual abundance-of uur harvests, after supplying our domestic wants, had loll-our granapes and Store-houses, ‘ fiHe'd with a surplus for exportation: It is in lire midst of this,-that an-irredeemable and depreciated paper currency is cntailed.upon the people* by a .largo portion of the bank?. They are not driven lo it by tho exhibition of a loss of public confidence, or ofa sudden pressure from their deposif tors or noteholders, but they excuse themselves by alleging that (tie current of business, arid exchange, with foreign countries, whickdraws-thc j precious metals from their vault?, would require in order to meet it, a larger curtailment of their loans lo a comparatkely small portion of tire community, than it will be convenient for them in bear, or perhaps safe for (ho banksio exact. The plea'has ceased to bo one of necessity. .Convenience a'ud policy are now deemed sufficient to warrant these institutions in disregarding their solemn obligations. Such conductis nounerely an injury to individual creditors, but it is a wrong to tho whole community, from whoso liberality they hold most valuable privileges—whose rights Utoy violate, whose business tliey derango lind the ralao of whose property they render unstable and insecure. It must bo evident that Hus new ground'for .bank suspensions, in reference to which their action is not only ■disconnected with, but wholly independent of, that of the public, gives a character to their suspension tnrfro alarming than any which they exhibited bofore, 1 and greatly increases lire impropriety of relying on tho batiks in tho transactions of the Govern-] ment.

tho case, Aided by the facili tics afforded-by. iha banks, mere credit Ins become too commonly! the. basis ol lradc. y .Many of ihe Wnka ihcmselves, not content with largely -stimulaUnij .this system among others, have usurped the business, while they impair tho stability, ofihe mercantile community; they have become- bnrrqivvrs.insicad of lenders; .they establish their agencies abroad; they deal largely in sleeks arid mere inn. disc; they cncotirage the issue of tr.curi* lies until the foreign market is glutted with them; and, unsatisfied with the legtiiaiaicoso of their oivn-capital aad the exercise of their lawful privileges: they raise, by.large loans, additional, means for every variety J of speculation, Thc > disasters attendant on thLs deviation ‘ fiom tlio lormcr course of bysinesapn this country-, are now shared-alike by banks and individuals, to', an extent o_f which there is perhaps no previous, example in the annals.nf our country; So long as' a willingness of th'o foreign lender, and a’sut 1 - ficicnt export" of our productions to meet any necessary partial payments, leave the How of credit undisturbed, all'appears to be prosperous; ‘hut as soon as it is cheeked by any-hesitatlon" abroad, by~anSuability to make payment there in our product ions, the evils of the 1sy stem are disclosed. The pap'er currency "which might servo lot.doiiicstic'purposcs, isuselbss ito. pay tho debt duo in Kuropc. CJold and Eilvcr'oro therefore drawn,- in exchange for them noJLcs, from the" banks, Tokcepup their supply of coin, these inetitutfons aro obliged to icalt. upon their own debtors, who pay them principally .in their own notes*;which arcosuua variable to Uie'm as tliey aro to tho merchants to meet .the foreign demands.The calls of tlio banks", therefore, in such emergencies; of necessity,'.excccd. |hat demand, and praditcc'a corrcspiinfling : cur-, iailmorit of their accorariiodaiiohsaiid of tho currency, ’it lhc very hioment whcii the state of trade renders itmosvjncob venierit to be borne. The" intensity of tins pressure bn the community is in proportion lb the prey feus liberality oferedit and consequent expansion of the currency : tore-* cel ealcs of propcrtyjarc madcal the time \yhcn the means pf piu-chasing are-most reduced, end tho -rivorst calarattie»to indjy id rials arc. only at last arrestcd.'iiy atvopen vlolatioh ortheir oblrgjatione by tho banks, a rdfusal 16 pay specie' for their notes, arid aniiupbsiiion ttpon the community of a ilnctnaling end depreciated.currency.' These consequences ire inherent fathe p*rcsent system. ‘.They arc nqtTnfluericcd by tho. banks being largo or small, efealed by National pr State Government?,. .They arc the results of ‘tlio irresistible laws of trade and credit. In the

by J upon these measures present or past, and. much IjjlesS to discourage th? prosecution of fair'cotn- «• mcrciil dealing between the- two countries, 113 j based on reciprocal benefits; but it ;3, | been made manifest that Hie power of indicting 110 I these and similar injuries, is by the resistless law n- :of accredit currency and credit.trade, equally cacsipalflo of ex lending their consequences jhrough n- !a!l the ramifications of our faanhing-^ystciupand ri- by tiiat means indirectly obtaining, particularly in; when our banks are used as depositories of the sir public moneys, a dangtrims political tnfluenco in hi I the.United States, I have deemed it my duly 10 111 U|ting the subject to.yotir notice and isk for it serious consideration; ■ • lie Is an argument required.beyond the exposition re of these facts, to show the lifipropriely of using to’, cur ’banking institutions as depositories of the us t public money? Can we Venture 'nothnly to firing counter the risk of their iirifridual and . mutual it 1 . mitnia,nagcmerit, bat at the earao trfnei to’. plaice iy our foreign and domestic policy entirely under, of the control of a'foreign moneyed interest! is; do ( sd is to impair the independence pfour Gdv- )»’ crnmcnr, a3''thc present credit system has nlro j ready impaired the independence of our *bauk*. re i’ll is tb'aubmii all its tmpormni : !o|ienfiions, ht whether 'of.peicc or iVarVtobo .comrollfdqr. ay thwarted at first by our own banks, and then by ro a po w e r a b roa d, g rcatcr I can is, hot. bring myself depict Jtltd- humiliation ' of which thisGovernment anil people inighVsoonc ■ 5p or; later he reduqpd, if the means for. defending in their rights, arc to bo' made dependant ■ upon to those who may'have the mosl pow.crftifof mofie laves to impair them. - ■ ; V •. , ' c- Nor is it onljj in reference to tho cfiVct of this stale of things on the iiidcpeniloiicVol our Gov’-' r- ernment or of our banks, that the subject presents r- itself for consi(Jerii:on; il is to be viewed also in of its.relations io'tlic general trrdoiof eirr country, c. fho 1 enno .is not long-past when a deficiency of ty foreign crops was thmiglll tepliord -h profitable [it market for the surplus of ouir industry; .but now c-* wo ..await with feverish anxiety - the-news of the »n Ihiglifilt harveai, not sq much /loni inutivcs of, [j commendabio syfnpaihy, but fearliit anal’ ticipatcdTailurq should naVrow the field of credit r- •hyre.; Docs’nouhis speak volumes to (lie pair ttiotl Uan-asyst.cin’bD berielicefil.'wi=e,or just, i- which creates greater anxiety for interests dc-. , - pendant on ftir ttyi genera! ?. prosperity ofdiir own country ahd the profitable' , c exportation of the VurpKia produce ofcurlabprl al Tho to wh kh I hate thus ■ adi»f verted appear to trie loafibrd weighty reason?, tc developed by laic events, to be added - ip those l- whidh I haVe on former occasions offered, when n sutmiuing to your better discerns- ment the proprktyof separating the’custody of y_ the public money from bankinghisiitulions.. Nor 1, has any thing occurred to lessen, iii my opinion, j, the force bt what; has been hcrcioforb* urged. ), Thdtonly’ground on winch thaticusto.Jyxan be ■- desired by the is the profitable ‘use w Inch r, they tnayinakc of the money,» Such utje would ■ be regarded i nindividualsas a’breach or trust, a or a crime'qf great magnitude, mtd.yet it may be’ > reasonably .whether; first and last, it ’is : ; ■ not attended with morc niischicvqiis' consequcnj cc3, permitted to the former tijan to the ’ * Jailer.'. The practice' of permittipg Dio public j i, money to fo used’by its keepers.as here, is be- l lieved to bo peculiar to’ this counirv/and to exist f r scarcely aay'khcroclsc.* To procuro it here, \ -• improper influences are appealed to; imwise con- ] i, nexions creVslablishedbclwconihc Govcrnrnent t ( ami vitat numbers of powerful Slate institutions; < 3 other inoiiycs than the puhlicgood ape.brought to f - bear both on the Executiye bnil Lcgislntjvo de- ; » pari ments, .'iind ; eel fish combtniiionF, leadi ng'- to ; special Icriflation, 7 arc It?ia made' ihe 1 - iniemt of hshking inpfiiuiionsand iheiV stoc);- 1 f .hold ers t !i roughout the Union‘to usn their exeri 1 s tior.s for the increase of and lhc accutnuj lation ofa surplus rcventid; and, while an excuse 3 is. aflurded,'tltd dieans are* furnished for those ( , excessive issued wlikh-lead.to extravagant trad- f f ing .-uid Speculation, and arc the Torerunners of j ( a vast debi abroad, and a suspension of tlto banks ’ al hqmc. .. : ’ i- ■’ : i .•’• ■ 1 ■. .Impressed; t/krdfdrc, as I am,* with the fpfei- 1 : priety ofthafimdsDftlmGoVcrnrtient being wilhV 1 ; drawn from the private use of duber ban* or , ihdividua??,- the public inpndy.kejit by.'?uly : c , pnbljctagcDji; and belieVing'qs I 'do, 1 that sueb is the judgraciib w bididiscuyfllon, 6 . reflection and ex per ienco h av d : prod u c the - public,.mind, I leavo tho yoii. It i?, ® all eycjits, esiential i o I lid in teres Ijs of the com- B . tuunity. iud the lusinepdof thsGovernment, that , a. dccibion should bo made. :.. . vv-. P faf tho arguments that djs'sua'de us- frprij S cm ploying banks i n the custody and d isbureemont a of the publip money apply, with equal force;* to a the receipts of their notps for. public dues.’ .The’ 0 ; djfisrcnco is only in form. - W one jnstanco tho V Government is a creditor.for tia'Sddposites, and 1 R In the other for the nowa ii;hdId§,-;. They afford I' the same opportnoily for using the public moneys; and equally leap to*all the evila'uudndant 'upon * it, yince a bank can as safely ’•Vw, dis- P | counts on a dopo8/|le.orirc notes inithohands 'of 11 public ofneer its on one.made in its own Vaults. *' ’ Qn tho Qthc'r, hand, |t Would give to the Govern- * mcoi no greaterBecurity;' for, in base of failure, “ the claun_of the noteholder would be no ' beller -JB than that of a depositor, •. Vl i i : v ; I -.arn awaio thaV lho danger of inconvenience ® ! *°j|hq pubh’c. anil unreasonable. nrosearo upon, P ; sound-banks hive - been urgedjw objections ib re-. - ;i the payment ofthe rdvenuo in gold sod d< h, Dcr? These - objections have been greatly ex- •! a ggcraled. : : iFrotn llid .bcst cstiirfalcs '.wo .huy PJ safely; fix the. amount of fpepie in the at p 1 eighiy*fiye:milh*on8 orddIlarff,WDd thc.portiomof tb that .which would he employed at anyione. time pi in thd rcccipU and disbursements oft he Govern- of meat, even if the proposed change wore made'at oi once, would not; it is now, after fiiller inv«tiga- *ii tion,, four.orfiyoj*millionb.; If bs the change were gradual, several years;’ would m elapse before that sum would be required, with as annual opportunities, in.the mean time,' to alter mi tho law, should experience prove it to bo oppres- th sivc or inconvenient.. ; The portions of the com- be munily on whose business thc.change would im* is mediately operate, arc comparatively small, nor re is it believed that its effects would 6c in the least ry unjust or injurfouano them. ' ha in the pay mept of duties, which constitute by cr far *the groatcr portion of the revenue, a very th large proportion is derived from foreign cotmnls- it sion houses and agents of foreign manufacturers, an who sdrthc goods consigned, to them, generally, of at auction, and aftor paying the duties out of the rw avails! remit the rest abrbad in specie or its wl equivalent. That the, amountof duties should, rc< in be ako retained in specie, can

hardly bo made a mailer of complaint. Our!own importing merchants, by whom tho reeiduo of ihb ■ duties'll paid., are not only.peeuliarly interested * in-maintaining a sound currency, which the measure in question will especially p'romotj but are, from nature of their dealing-, bestf’able to know-when specie'will be needed/ and iJW cure u with thd least difficulty or sacrifice. | R e . siding,: too* almost universally in faces' vbere tho revenue it reCeipt-d, abd wb 'M the Graffs used by the Government (or its dllbdfsefienta most, concentrate, they have every oppottnimv to obiairfand use them in plrtgof specie, should it be for their interest or convenience. Of the number; drafts, and Iho facUiurJ they afford, as well as of the rapidity with wliicfi the public funds are drawp and disbursed, ala idea may be formed 'from the Tact that, oflnea/tv I twenty .millions of dollars paid to collcctok and receivers during -.the present year," the, dveraso amount In their hands at any one time bjs not Exceeded a million and a half; and of the] fifteen , millions'received by the collector of New Y or t alone during the present year, the average Lmountheld fay him. stibjfrci to draft during each tfeek, has been Jess than half a million. . The qasc' and safety of the operation* oMfifc Treasury in ktcping,tlie public money, are" promoted by the application of its own drafts to tho j public dues.* The objection arising from having them mp long oulsanding, might be obviated, f n<I i e V ct ™ 10 •fiord; to .■merchants and | banks holding them an equivalent for specie, and in "that'way greatlyjcsscn iho : amount tactually required. Still less inconvenience wilf attend the requirement of epedtnn purchases if public lands,.'Such purchases, except when made on speculation, are, in general, butWingle 'transac- ■ lions,irarely repeated by the same person; and it [ i? a fail, that for the Iasi year and a half, durin" . j which the holes ofGound banks tiavo been *je» [ ceived, more than a moiety of these payments has been voluntarily made in specie; being. a |ar»er proportion than wouldMiavo been *rt*quTTcd°ia three years under the graduation proposed, .It is moreover, a-pimciplc, than whilh none is better settled by experience, that the ktipply of the precious meta'Is will always be found adequate to the uses lor which they are required. They abound in' countries whero no other currency ia 'allowed. In cur'd w a Stales, where small notes are.excluded, gold.and silver supply their place. When driven to th’ciy hiding places by bank suspensions, .a little finnpess in the cominenhy soon ■ [restores them in a sufficient quantity for ordinary purposes.- 1’os(age and other public cues have •been cul.'cctedin coin, without inconvenience, even-in States-where a.depreciated paper currency has; existed foryears,’arid Ithi?, with the md of.Treasury holes for aJpart of the time, was ; done without interruption daring the ilmpensidn ofl£37. At the present n.baent, receipts and disbursements of the‘'Government arc taade ia legal currency in the largest portion ■of tho l/uioh—no one suggests a departure from' Ibis rule;'and if it can now be e»cce»sin)Jy carried n in; it will be surely aliended wijh less,difficulty when bank botes arc again rnJenm'd tu specie. - IndeedT cannot lhink.that a sVricur oljectioa iVotild any where he raised to the ihcoipt and payment, of fold and silver in allpubjc ' lions, were it not from an apprelier.Liou.thai » ; surplus in the Treasury.mtglii’withdtaw a largo. * porri on of it from circolatioa, and pick it up on-\ \ profitably ip the public ’ |i-would not.-ia 1 my opinion, hediffic;iU to prevent such an in- 1 convenience from occurring but the nutli<‘»tic slatemtnis whiclyl have a I ready. submitti'd- !<• you in regard to tho actual amount in me public Treasury at any one time during the period embraced .in them, and the little probability ofa different state of theTreasury for at least some years to come, seeni to rendur it unnecessary to dwell upon it.,-Congress, moreover, as 1 hats before, observed,'will in' every yearimVe an opportunity to guard against it, should the occurrence of any circumstances lead us to apprehend injury from, this source. Viewing the subject jnV all its aspects, I cannot believm that any period will be; more- auspicious I band lie present for the adoption of all measures oeebssary to' maintain Th? sanctity of our own engagements, ah 1 Xb aid in securing to the community that aUmdtjnl supply’of the‘precious mclils which add so much io their prosperity, gives such i tiered - ed^Ubility. to all their dealings.; :’In a country io'coinmercial as ours,' banks in some form wil) probably always exist; hut thi? serves only to render it the more incumbent on. notwithstanding the discourage ments of tho pastytq striveinour respective stations to roiligate the'evils they ,prodacc4-io lakc-from them, as rapidlyas the.obligations of public faith and a careful consideration of the immediate interests of the community will permit, the unjust charac-ter-of monopolies,*- lo check, soTar-as.rriay be praciiciblc by pru'dopt legislate, these temptatiohs of iniercsian’d those opportunities for their ’ dangerous indulgence*,.Whicli; besel them on every; side; and to confine them stricily to tho. performaucc.of.their paramount duty, that bfaiding tlie opefationsofcommercc.ratlier than consulting, their own exclusive .advantage. vThcso' and olfaersalutary reforms may, it is believed, be accomplished without the-violation of any of the .great principles of the social compact, the observance of which Is indispcnsible to its existence,, or inlerferiBg In any way with the useful and profitable emplbypicnt of real capital. _ . . Institutions so: framed have existed and still existelse where; giving to[commercial intercourse jail BMesnrjr, facilities, without inflating or dej predating jho'curfency,'or .stimulating epccula- , pen; '- Thus'accomplishing their legitimate ends,: Ihcy fiavD gained the surest guarantee for their ‘ protection and encouragement-in the good will of the coromon/ty- Among a people 10 just as ours the same results could not fail to alien d a similar course. The direct supervision of the banka belongs, from the nature of our Government, ‘ tp-the State's who authorize 'them. But as tho conduct of tho Federal Government in the

use oT the people of the States the beat practicable mail establishment. To arrive at that cnibit is indispensable tlial iin; Post Olnce Department Eritill bo enabled (o control the hours at which the rnailaslialHc carried over railroads, as it now dors over all other rinds. Should' serious incon-

Veyiohcfia arise from the inadequacy of tho compensation now provided by taw, or from unrcaV ronablc demands by ohy of tho railroad companies, V ibc subject*! s pfsuch general importance as to refjuir? the prompt attention of 'Cwnqrci 5, ' In relation to Gtcainboal lines, the ihc.- 4 1 c:TlcIent remedy is. obvious, and hm* Icon eutrgested by the IVsfinaster General. The War and Havy ■ ; Departments already employ H-Minboals In their service, ami although it U by no means desirable that'the Government should tin Itrtake the transportation of passengers or freight as a business, can bo no .reasonable objection to running . boats, temporarily*, whenever it may be necessary ■io pul down attempts al extortion, 10 be discon1: /tiaucil as socii as reasonable cun rue ts can be-ob-j laincd. Tint suggestions*)! tlie Postmaster General relative 10 tUoinadoquacy ofthpfogal allowance ib,witnesses in cases®/ proieculions for mail depredations, ftienXyouTficriouo consideration. The * Safety of the mails requires that such prosecutions eball,bo efficient, and.justice to the citizen .whose time is required to bo given to tho public, demands not only that his expenses shall be paid, hut that IieSiJv.ll receive-! reasonable compensation.' ‘ t •The Reports'from the \Vdr, Navy, and Post Office Departments will accompany this communication, undone from ihoTrcasary Department will bo presented to Congress in 3 few days. ' For various details in respect to the matters in chargo of theso departments, I would refer* you . to thoso important docutiicnta't satisfied that you will find in. them many valuable suggestions, which willjbo found welldcserying.imi attention of the Legislature. ' | ’ . , /From a report made in December of last vear" ' by tho, Secretary of State, to thb Senate, showing the (rial docket of each of tlta circuit courts, ' and the number of miles each, judge has to .travel ill the performance Of bis duties* a great inequality appears in the amount of jabor assigned to each judge. The number of terms to bo held in each of the courts cobpoaing the ninth circuit, tho distance between the places at which they eiti and from tlienco iq the seat of Government, * are represented to be such as to render it impos- *' eiblo. for the judge of that circuit to perform, iii . a manner fcorrcspondlng with the public exigencies, his term and circuit italics. A, revision, ihorcfore/of the prcsqnt arrangement of the circuits seems to be called for qnd is recommended to your notice. . . 1 think it proper to call your attention.Io the power assumed by Territorial Legislatures ip au- * tbortze. the issue of bonds llyi, corporate companies on the guarantee of Urn Territory. ‘ Corigross pissed a law in lg2G, providing that no act of, a* Territorial Lcgfslaiuro- incorporating . banks shmhl have the force of law until approved by Congress, but acts of ajery exceptionable character previously passed by the Legislature of- * Florida, were suffered remain in fatce; by virtue of which bonds may be issued to a very largii -bmaanfby those mstitaironsjbpori lho faith of the Territory, A resolution intended tt» bu a .'joint one passed the Senate at the same session, 'expressing the sense of.Congress that tlie laws in question qughtjiot to be permitted to* remain in force unless amended in many matcriafrcspccts, ' but it failed in the House of Representatives for want oftims, aqd the desired amendments have not been made. The, interests invoivedhare" of great Importance and.tho subject deserves your early apd careful attention. . • ■ -The continued agitation of tbe question relative to the best mode of keeping and disbursing the public money, Hill injuriously aliecls the business of the country. Tlie suspension of specie payments in 1S37, rendered the use of deposits) banks as prescribed by the abt of 1330, a source rather of embarassment than aid, and of necessity placed the custody pf moit of tlie public money afterwards-collected in charge of the public officers. The new securities for its safety, which this required, were a principal cause of my convening an extra session of Congress; but in consequence ot a disagreement between the/two Houses, neither then, not at any subsequent period, has tbcrc been any legislation on , the subject. The effort nude at the lost session to obtain the author, ly of Congress to punish the use of public money ter pi irate purposes as a crime, a measure alttndod under-other Coverh- , meats with signal id vantage, was also unsuccessful, from diversities of opinion ifnlitatsiody, notwithstandihg the anxiety doubtless felt by it to afford every practicable security. The'result of this is still to leave the custody of tho public money without those safeguards, which have been for several years earnestly desired by thcjwxecu- - tire; and as,the remedy isonly to be found in Vie action pf the Legislature, it imposes on me the duty of again submitting to you tho propriety of passing a law, providing for the safe keeping of. , the publfo moneys, arid especially to ask that its* use for imvaia purposes by any officers intrusted with it, may be declared to be a folonv, punishable with penalties proportioned to the ma"ui. lude of tbe offence.. ‘ "

recent events which have so strikingly illustrated the certain effects of these laws, we'have seen the lank of the largest capital lathe Union esunder a AVnonal charter, and lately, strengthened, as we were authoritively informed, by exchanging, that for a State 'charter, with ijcff and unusual privileges—in'a condition too, a#'jt is saidj ofentire soundness and great prosperity— -not merely unable, to resist thtfse effects, but the first to yield-to IhqmV ' -" , ’ . Nor is it fo bo overlooked that there'exists-a chain of necessary dcperida rico among,these institutions which obliges themjtoH great extent; to follow the course of others, * notwithstanding Its Injustico to their own immediate, creditors* or injury to tho particular community in which they are This dependence of a 1 bank’, which id In proportion tb the extent of (fs debts for clrcuialioh and depositesyis hot niereiy ; on. others in its pwn yicttiiiy, but dri alf those which connect it Twith . tbb contrp bf trade; Distant hankBmay /aili : wiihouUcrtou$ly affecting tjhosu in our principal commeVcial cities; bpt tho failnrq;,of the lilter'is fiflt at ilic extremities of. the Union. ".Tho suspenetoh at New YolSr; in 1337, was'every where, with very-few cxcpptipnt?, followed, as soon as fie. was known; t!iat." rccontl y at Philadelphia immediately effected the; banks of the South and-Wesi in' a similar manner. -This

• d'cpcndance OToiir whole banking' system.oil ilio iuEliiuiionsinatewlargcciticij, is not (bund in. tho laws of their organisation, hut.in jhb£q’ oV t trade and exchange, ' The banks St iliat centre to which currency Uowe,’ arid-wlie roiLisreqii i rcd in- pay triema .far ipcrc!iand ize r Iiold'tIi6 p6 wer Of controlling’ whence it cgincs/ i w hilts the latter possess no; m'eitw pf restraining them; eo that I lie! value of ipdiyidaal/propprty, and the prosperity of trade,'through" tlie * whole interior of iIk} country, aro inado io depend-ori the good or bad management of the banking insUimipns' in Cie great seats of trade on‘the ’ sea*' board.’ . ■ / . :.-’ v ; \ - •' !,-• ' v; But; this chain of dependanco dbcs noV- Elop here. ■ It does not tcrniinaio'at Philahelphia .or New York. It rcaches across the: ocean/ and endaih Loudon, ihocentrdbf.the credit system: Tho’ same Jaws of trade,' which gi vqs toTthc banks in onrpririciplecitipspovvcroycr tho whpre banking eyficm of the United States, subject the former, in i,lte.tr lure* to the 'money, power Jr/ Great Ilrjtiiin.Jtjs not denied that tlic.««8pcnsibn of the Nets York banks. In 1537, which was folio wed .-jin qiyck ;^ucccesio ri throughout the' Union,, was produccd by pn'appflication. of'.tliat arid it is now allodged, in extenuation of thripresenV condition er so large di. portion of bur banks, their- cinbarrissmehts hiya; arisenfrom the same cause. '* ‘ '• ; .V•,. . :" * this influence they cannot ,nTJw_cntireiy escape/ for it has iU origm iri lhe credit curreir* cies of the I wo countries'; itjs.strengthened by the currcntoftradoandexc.hanga which' centres in London, 1 and is rendered elihpst; jrfesiitir bio by the largo debts contracted thenr by oi>r merchants, our batiks, anriour states. .'It la thus that ap introduction of a npwhank into the most distant of our villages, places the.business-of that village wiihin the Influence of the ibbpcy power in England. It is ihiipjhat every he \v debt which we contract coup try, seriously. affects. our own currency, and extends over tho pursuits ofour citizens its powerful influence, Wo cannot escape from this by.making now banks! great or small. National. 'The samo chains which bind those noiv existing; to tho centre of this system of paper credit, must equally fottcr every similar institution we create. It is only by the exlenitt) which tins systems has been pushed of late, that we have been made fully aware of its irresistible tendency to subject our own banks and currency to a vast controlling power in a foreign land; and it adds a new argument .to those which illustrate their precarious situation. Endangered in the first place by their own mismanagement, and agam by ihb conduct of every institution which connects them with tho centre of trade in our own country, they arc yet subjected, beyond all this, to the effect of whatever measures policy, necessity, or caprice may induce those who control tho credits of England to reroute. 1 mean not to comment

pilose circumsUnces, added to known defects in tile existing |aws and unusual derangement in Uie gcperal operatioBs oftrade; havc,-during.the last three years; much inc&iscd the difficulties attendant on the collection, keeping, and dixfiurEement of the revenue, and called forth corresponding oxcryiona from those haiing them in charge. Happily these have been successful beyond expectation. .Vast sums have been collected and disbursed by the several departments with unexpected cheapness and ease; transfers have been.readily. made to-every part of the Union, however distant; and havo boen far less than might have‘been anticipated, from the ateence of adequate legal restraints. Since the .omepre of the Tn£si,ry and Pos\ Office Ucpirt- - meats were charged with the custody of most of n "vW received by’lhem, there have SdiShf ilxt W«mlli0M of dollars, and St Z h CMe of th(J la ’ t0 “Hector at .New i. it„ amo,lDl ofl0ES c» sustained in the collection cannot, it u, beUcved, exceed sixty thousand dollars. The deflation, of the late collector: at that city, of the extent and circumstance* of which Congress has been fully informed, raj through all the modes of keeping the tmbn'ft money that have been hitherto fn use, and was dhiinguiahed by an aggravated disregard of <'oty tjiat broke through ihc.reatraibts of every I"- rystPiu; and cannot, therefore, be usefully referI n as a test of the comparative safety qf-eithar. Adtyionkl information wiil aUobe furpielied by

A large and highly respectable portion of our bankinginstitutions arc, it affords me unfeigned pleasure to elate, exempted frpm all blame on account of this second delinquency. They have, to their great credit, not pnly continued to meet their engagements, bnt havc (jvcti repudiated ! the grounds of suspension now resorted to. It is ‘only by such a course that the confidence and good wilt of the community can bo preserved, and, in the sequel, the best interests of the institutions themselves promoted.

management of its revenue has aWa-a .powerful’ though Jess immediate influence upon them, it becomes our doty to see that & proper, direction is jjWeo to it. While,the keeping of tho .public revenue in a seperato and Independent Treason ry, and of collecting it in gold ana. ailrer, will . have a salutary influence on the system of paper credit with tyhich all banks are corrected, and thus aid (hose that are soundiand well managed, it will at the same time sensibly check such as are otherwise, by at once withholding tho means of extra vaganceofforded by the public funds, and restraining.them from excessive issues of notes which they would be constantly called upon to redeem, s.\ . c I am aware it has been urged tbatthjs contrcr '

New dangers to the banks are also daily disclosed from the extension of that system of .extravagant credit of which they are the pillars. Formerly our foreign commerce was principally founded on an exchange of commodities, including the previous metals, and Jeavingyn its transactions but little foreign debt. Sucti is not now