Fellow Citizens of the Senate and of the 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 July 4th, 1831 remain in some important parts
unfulfilled.

By the second article of that convention it was stipulated that the sum
payable to the United States should be paid at Paris, in six annual
installments, into the hands of such person or persons as should be
authorized by the Government of the United States to receive it, and by
the same article the first installment was payable on February 2d,
1833. By the act of Congress of July 13th, 1832 it was made the duty of
the Secretary of the Treasury to cause the several installments, with
the interest thereon, to be received from the French Government and
transferred to the United States in such manner as he may deem best;
and by the same act of Congress the stipulations on the part of the
United States in the convention were in all respects fulfilled. Not
doubting that a treaty thus made and ratified by the two Governments,
and faithfully executed by the United States, would be promptly
complied with by the other party, and desiring to avoid the risk and
expense of intermediate agencies, the Secretary of the Treasury deemed
it advisable to receive and transfer the first installment by means of
a draft upon the French minister of finance.

A draft for this purpose was accordingly drawn in favor of the cashier
of the Bank of the United States for the amount accruing to the United
States out of the first installment, and the interest payable with it.
This bill was not drawn at Washington until five days after the
installment was payable at Paris, and was accompanied by a special
authority from the President authorizing the cashier or his assigns to
receive the amount. The mode thus adopted of receiving the installment
was officially made known to the French Government by the American
charge d'affaires at Paris, pursuant to instructions from the
Department of State. The bill, however, though not presented for
payment until March 23d, 1833, 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 charge 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 charge 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 December 6th, 1832,
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 July 13th, 1832
the tonnage duty on Spanish ships arriving from the ports of Spain
previous to October 20th, 1817, being five 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 May 20th, 1832, by a royal order dated
April 29th, 1832, American vessels in the ports of Spain have paid five
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 five 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 two
remaining installments was requested by the Portuguese Government, and
as a consideration it offered to stipulate that rice of the United
States should be admitted into Portugal at the same duties as Brazilian
rice. Being satisfied that no better arrangement could be made, my
consent was given, and a royal order of the King of Portugal was
accordingly issued on February 4th, 1833 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 March
28th, 1830 was received. The commissioners for examining the claims
have since terminated their labors, and their awards have been paid at
the Treasury as they have been called for. The justice rendered to our
citizens by that Government is thus completed, and a pledge is thereby
afforded for the maintenance of that friendly intercourse becoming the
relations that the two nations mutually bear to each other.

It is satisfactory to inform you that the Danish Government have
recently issued an ordinance by which the commerce with the island of
St. Croix is placed on a more liberal footing than heretofore. This
change can not fail to prove beneficial to the trade between the United
States and that colony, and the advantages likely to flow from it may
lead to greater relaxations in the colonial systems of other nations.

The ratifications of the convention with the King of the two Sicilies
have been duly exchanged, and the commissioners appointed for examining
the claims under it have entered upon the duties assigned to them by
law. The friendship that the interests of the two nations require of
them being now established, it may be hoped that each will enjoy the
benefits which a liberal commerce should yield to both.

A treaty of amity and commerce between the United States and Belgium
was concluded during the last winter and received the sanction of the
Senate, but the exchange of the ratifications has been hitherto
delayed, in consequence, in the first instance, of some delay in the
reception of the treaty at Brussels, and, subsequently, of the absence
of the Belgian minister of foreign affairs at the important conferences
in which his Government is engaged at London. That treaty does but
embody those enlarged principles of friendly policy which it is
sincerely hoped will always regulate the conduct of the two nations
having such strong motives to maintain amicable relations toward each
other and so sincerely desirous to cherish them.

With all the other European powers with whom the United States have
formed diplomatic relations and with the Sublime Porte the best
understanding prevails. From all I continue to receive assurances of
good will toward the United States--assurances which it gives me no
less pleasure to reciprocate than to receive. With all, the engagements
which have been entered into are fulfilled with good faith on both
sides. Measures have also been taken to enlarge our friendly relations
and extend our commercial intercourse with other States. The system we
have pursued of aiming at no exclusive advantages, of dealing with all
on terms of fair and equal reciprocity, and of adhering scrupulously to
all our engagements is well calculated to give success to efforts
intended to be mutually beneficial.

The wars of which the southern part of this continent was so long the
theater, and which were carried on either by the mother country against
the States which had formerly been her colonies or by the States
against each other, having terminated, and their civil dissensions
having so far subsided as with few exceptions no longer to disturb the
public tranquillity, it is earnestly hoped those States will be able to
employ themselves without interruption in perfecting their
institutions, cultivating the arts of peace, and promoting by wise
councils and able exertions the public and private prosperity which
their patriotic struggles so well entitle them to enjoy.

With those States our relations have 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 charge d'affaires
at Bogota has been accredited to the Government of New Grenada, and we
have, therefore, no diplomatic relations with Venezuela and Equator,
except as they may be included in those heretofore formed with the
Colombian Republic.

It is understood that representatives from the three states were about
to assemble at Bogota to confer on the subject of their mutual
interests, particularly that of their union, and if the result should
render it necessary, measures will be taken on our part to preserve
with each that friendship and those liberal commercial connections
which it has been the constant desire of the United States to cultivate
with their sister Republics of this hemisphere. Until the important
question of reunion shall be settled, however, the different matters
which have been under discussion between the United States and the
Republic of Colombia, or either of the States which composed it, are
not likely to be brought to a satisfactory issue.

In consequence of the illness of the charge 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 charge 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 January 1st, 1834. 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
March 4th, 1832, 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 January 1st, 1834 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 Post Master 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 four or six years, I can not too earnestly invite
your consideration of the subject.

Trusting that your deliberations on all the topics of general interest
to which I have adverted, and such others as your more extensive
knowledge of the wants of our beloved country may suggest, may be
crowned with success, I tender you in conclusion the cooperation which
it may be in my power to afford them.