Newspaper of Burlington Free Press, 16 Aralık 1836, Page 2

Newspaper of Burlington Free Press dated 16 Aralık 1836 Page 2
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every quarter of the Union. Every cillze n in every state who purchases nil article wbich has paid a duly at that port, contri ''b'uTca to the accumulating mass. The sur ' plus collected tliero must, therefore, "bo made' up of moneys or, properly from other states. Thus ttie wealth anil business of " every region from which these eurplus . funds proceed, must bo to some exieni in jured, while that 'ofllio plnco whore the funds arcconccntrnjcd, and arc employed ' in ban king, are proport'ionnbly extended. But both in making the transfer of the funds which nre first necessary to pay the duties and collect the surplus and in ma ' king the ro.transfer, .vhicli becomes ncces ' sary whep the time arrives for the distribu ' tion of that surplus there is a considerable ' period when tho funds cannot ba brought ' into use ; and it is manifest that, besides ' the Iosb inevitable from such an operation, ' ils tendency is to produce fluctuations in the business of the country, which are al 1 ways productive of speculation, and detri mental to the interests nf regular trade. Argument can scarcely he necessary to show that a measure of this character ought not to receive further legislative en couragement. By examining the practical operation of the ratio for distribution, adopted in the depositc bill of the last session, we Ebnll discover other features that appear equally objectionable. Let it be assumed, fur the sake orrnrgumant, that the surplus moneys to bo dpp'dsiled with the States have been collected, and belong to them, in the ratio of their federal representative population an assumption founded on the fact that any deficiencies in our future rcveniio from im posts and 'public lands, must be made up byWircct taxes collected from the states in that ratio. It is proposed to distribute the surplus, say 30,000,000, not accord in? to tho ratio in which it has been eollec ted and belongs to I lie people of the States, in that of their votes in the colleges of elcc tors of Prcsidcnl and Vice President. The effect of a distribution upon that ratio is shown by the annexed table, marked A By an examination of that table, it will be perceived that in l he distribution of n surplus of 30,000,000 dollars, unon that basis there is a great departure from (he principle which regards representation us the true measure of taxation : and it will be found that t lie tendency of that depart ure will be to increase whatever inrqnali lies have been supposed to attend the one ration of our federal system in respect to its bearings upon the different interests of me union. In maliinrr the basis of rcnrcsenlalinn 111 basis of taxation, the framers of Ihc en sti- tution intended to equalize the burdens which arc necessary to support the Govern ment and the adoption of I hat ratio, while it accomplished this object, was also the means of adjuring nlhor orcnt tonics aris ing out of tl.c conflicting views respecting the political equality of the various mem bers'of the confederacy. Whatever there fore disturbs the liberal spirit of tin com promises which established a rule of taxa tion so just and equitable, and which expe rience has proved lo be so well adapted to the. genius and habits of.our people, should bo received with the greatest caution and and distrust. A bare inspection, in the annexed table, or the differences produced by 1 lie rnlin used in the depositc act, compared with the results of a distribution according to the ratio of direct taxation, must satisfy every unprejudiced mind, that tho former ratio contravenes the spirit or the constitution, and produces a degree of injustice in the operation ofthe Federal Government which would bo fatal to tho hope of perpetuating it. ' By the ratio of direct taxation, for ex ample, the Slate of Delaware, in the col lection of g30, 000,000 of revenue; would pay into the Treasury glHH,7IG: and in a distributioc of g:JO,000,000 shn would re ceive back from I lie Government, accord ing to the ralin of the depositc bill, the the sum of 300.122: ond similar results would follow ihc comparison between the small and the large States throughout the Union; thus realizing to the small slates an advantage which would be doubtless as un. acceptable lo them as a motive for incorpo rating the principle in any system which would produce it, as it would "be inconsist cnt with the rights and expectation or the large States. It was certainly the intention of that provision of the constitution which declares that "all duties, imposts and exci ses" shall "be uniform throughout the Uni led States," to make the burdens of taxation fall equally upon the people in whatever State ofthe Union they may reside. Bui what would be I he value of such an uniform rule if the moneys raised bv it could be im mediately relumed by a different one which will -give to the poopla of some States much 'more, and to thoso of othors much leg's, than I heir fair proportions.' Were the Fcdcral Government to exempt, in ex press" terms, the imports, products, and manufactures of some portions oi l ho conn try from oil duties, while it imposed heavy ones or) others, tho injustice cuuld not be grealer. I,t .would bo easy to show how.by the op. eratlon of such a principle, Ihn large Stales oT.the Union would not only have to con tribute I heir just i-hare towards the support of the Federal Government, but also to have to bear in some degree the taxes no cessary to support the Governments nftheir smaller sisters; but it is deemed unneces sary to state the details where the general principle is so obvious . A system liable to such objections can never bo supposed lo have been sanctioned hy the framers of the constitution, when they confered on Congress tho taxing pow er: and I feci persuaded that a mature ex mination ofthe subject will satisfy every one that there are insurmountable difficul. ties in the operation of any plan which can be devised of collecting revenue for the purposo of distributing it. Congress is oniy authorized lo levy taxes "to pay me aebli and provide, fur the common defence and general welfare if the United Statet," There is no such provision as would authorize Congress to collect to. gether the properly ofthe country, under the nime of revenue, for tho purposo of dividing it equally or unequally among the Slates or the people. Indeed it is not probable 'that such an idea ever occurred to the States when they adopted the con stitution. But, however this may be, the only safe rulo for us in interpreting tho sowers grsoted to the Federal government, , is to regard the absence of express au t ho r it y In touch a subject so important and delicate' as this is, as equivalent to apro. hibition. 'Even If our powers were less doubtful in this respect, as the constitution now stands, there arc considerations afforded by recent experience, which would seem to make it our duty to avoid a resort to such a system. All will admit that the simplicity and economy ofthe Stale Governments, main ly dcpcnil on the fact thai money has tn bo supplied to support them by Ihc same men, or their agents, who vote it away in appro priation. Hence, when there are extrav agant and wasteful appropriations, there must be n corresponding increase of taxes : and tho people, becoming awakened, will necessarily scrutinize the character of mea stires which thus increase their burdens. By the watchful eye of self-interest, the agents of the people in tho Slate Govern ments aro repressed, and kept, within Ihc limits of a just economy. But if the tie ccssity of levying the taxes be token from those who make the appropriations, and thrown upon a mote distant anil less re sponsible set of public agents, who have power to approach the people by an indi reel and stealthy taxation, there is reason to fear that prodigally will soon supersede those characteristics which have thus far made us look with so much pride and con fidence to the stain governments, as the mainstay of our union and liberties, Tho slate legislatures, instead of studying to restrict their state expenditures nr ' the smallest possible sum, will claim credit for their profusion, and harass the General Government for increased supplies. Piac tically, there would soon bn'but one tax ing power, and that vested in a body of men tar removed from the people, in which the farming and mechanic interests would scarcely be represented. Thpslatcs would gradually lose their purity as well as their independence, they would nut dnro tn murmur at the proceeding ofthe General Government, lest they thould lose their supplies; all would be merged in a practi cal consolidation, cemented by wide, spread corruption, which could only be eradicated by one of those bloody revolutions which occasionally overthrow tho despotic sys tems in i nc old world. In all the oilier aspects in which I have been able tn look at the effect of such i principle uf distribution upon the best in tercsls of the country, I can see nothing to compensate for I he disadvantages to which I have adverted. 1 If we consider the pro leclivc duties, which are, in n great degree, the source of the surplus revenue, huiieli cial lo one section of the Union, and pre judicial lo another, lliero is no corrective for tho evil in such a plan ol distribution On the contrary, there is reason lo fear that all the con plaints which have sprung irom (ins cause, would be aggravated Every one must be sensible that a distri bution of ihc surplus, must beget a disposi tion to cherish the menus which create it ; and any system therefore, into which it en tors, must haven pdwe'rful tendency to in crease, rather than diminish the tariff. If it were even admitted that the advantages of such a system could bo made equal to all llu sections lif the" Union, the reasons already so urgently calling for'n reduction of the revenue, would nevertheless, loose none of llieir force ; fur it will always be improbable that an 'intelligent and virtuous community can consont to raise a surplus lor the mere purpose ol dividing H, dimin ished as it must inevitably be by the ex penses of the various machinery "necessary to the process. The safest and simplest mode of obvia ting all tho difficulties, which have been mentioned, is to collect only revenue enough tn meet the wants of the Govern ment, and let the people keep tho balance ofthe properly in their own hinds, lo be used fur their own profit. Each Slate will then support iis own Government, and contribute ils due share towards the support ol the lieucral Government. There would be no surplus to cramp and lessen tho resources uf individual wealth and enterprise, and the banks would be left to t heir ordinary means. 'Whatever agitations and fluctuations might' arise from our unfortunate paper system, they could never he attributed; justly or unjustly, tn the action of thc'Federal Government. There would be soine'guaranty that the spirit ol wild speculation, which seeks lo convert tho surplus revenue into banking capital, would be effectually checked, and that the scenes of demoralization, which arc now so prevalent through the laud, would dis appear. Without desiring to conceal that the ex. porienco and observation of tho last two years, have operated a partial change in my views upon this interesting subject, it is nevertheless regretted that the sugges tion made by me in my annual mcs-oges of 1020 and 1030, have been greatly mis understood. 'At that lime, iho great strug. gle was began against that laliliidinanan construction ofthe constitution, winch au llionzi's the unlimited appropriation ofthe revenues ofthe Union to internal impmve incuts wiihin ihc Slates, tending lo invest in the hands, and place under the control. of ihc General Government, all the prin cipal roads and canals of tho country, in violation ol stale rights, and in derogation nf siale authority. At the same lime, the condition of the manufacturing interest was such as lo Creole an annrehensian that the duties on imports could not, with out extensive mischief, be reduced in sea sun tn prevent tho accumulation ofn con siderable surplus alter tho pnynenl of the national debt. In view of the dangers of such a surplus, and in' preference to its ap plication lo internal imdrovements, in de rogation'of the rights and powers of the slates, the suggestion ofon amendment of the constitution to authorize its distribu tion' was made. It was an alternative for what were deemed greater evils a tem porary resort to relieve un overburdened Treasury until the Government could with out a sudden and destructive revulsion in tho business of thu country, gradually re turn to the just piinctplo, of raising no mnre revenue from the people, in taxes, than is necessary fur its economical support. M veil that alternative was not spoken of but ill connexion with au amendment of Iho constitution. No temporary inconven. ience can justify tho exorcise of a prohibi ted power, or a power not granted by that instrument; and it was from s conviction that the power to distribute even a tempo rary surplus of revenuo is of that charac ter, thnl it was sucgeslod only in connex ion with au appeal lo Ihn source oT all Id gnl power in tho General Government, the States which hnvo established it. No such appeal has been taken, and in my npinoin n distribution nf Ihn surplus revenue by Congress, either to the Stales or thepcnple, is to be considered as among prohibitions ol I lie constitution. As already intimated, my views have undergone a change, so far as lo bp convinced that nl tentative ol tho constitution in this respect is wise or expedient. The influence of an accumulating surplus upon the legislation of Ihn General Government and the Stales, its effects upon Iho credit system uf Iho country, producing dangerous extensions and ruinous contractions, fluctuations in the price of prnpcrly, rash speculation, Idle ties, extravagance, and n deterioration of morals, have taught us the important les son, that any transient mischief which may attend the reduction of our revenue In the wonts of our Government, is to he bnrnc in preference to an overflowing Tresury. On the establishment of a national bank, it becamo tho intcrot ofils creditors, that irold should bosuperccded by tho paper of tho bank. as a gcncial currency A valuo was sonn at. lacked to tho gold coins, which made llieir ex portation to foreign countries, as a nicrcantllo commodity more profitable than their iclcn tion and uso at homo as money. It fullowcd as a matter of course, ifnot designed by thoso who established tho bank, that Iho bank ba. camo in Direct, a substitute for the mint of tho united States. Such was the origin ofa national bank cur rency, and such the beginning of those dif ficullicswhich now appear in the excessive is sues ofthe banks incorporated by the various states. Although it may not bo possible, by anv legislative means within ourpnwer, to change at once tho systcln which'lias thus been intro duced and has received the acquiescence of all poitons ofthe country, it is certainly our duly to do all that is consistent with om- con stitutional obligitions m preventing Iho mis. chiefs which arc threatened by its uiiduo ex tension. That tho efforts ofthe ".it hers our Government lo guard against it by a consii tutinnal provision, were founded on an inti mate knowledge ofthe subject, has boon fre quently attested by the bitlcr experience of iho couniry. I no tamo causes which led them lo irfusc llieir sanction to a power au. lliorizing tho establishment of incorporations for banking purposes, now exist in a much stronger degee lo urge us lo exert tho utmost vigilance in calling into action the means no eesary to correct tho evils resulting from Iho unfortunate exercise of tho power, and it is to be hoped that opportunity for effecting this great good, will be improved before tho'cuun. try witness now scones of embarrassment and distress. Variableness must ever be the characteristic of a cuncncy,of which the precious metals aro not the chief ingredient, nt which can hu expanded or contracted without rpgnrd tn tho principles that rcgululu Iho valtio o?thoso mo lals as a standard in tho general Irado of Iho world. Willi us bank issues constitute such a currency, and niusl ever do so until Ihey aro mado'dcpcndanl on llioso just proportions of gold and silver as a circulating incdium.-Vliicd experience has proved to bo necessary ,nol on. ly in this, but in all oilier commercial coun tries. Where those proportions are not infused iulu tho circutaliun, and do nol control it. it in in.nulest ihat prices must vaty according to tho lide of bank Issues, and tho value nndsta. bihly of properly must stand exposed lo all the uncertainly which attends that adminis tration of institutions that ar0 constantly lia ble to iho temptation ofun interest di-linct from Ihat ofthe community in which they are established. Tlio progress of an expinsion. or rather a depreciation ofjdc currency, by excessive bank iss ics, is always attended by a loss to Iho la boring classes. This porlionof the cinntnu- nuy nave neillicr linio nor opportunity tn wnlcli the ebbs and flows of (do inonev mar ket. Engaged from day lo day in lheiruo ful toils, they do not perceive Ihat although Iho'r wages aro nominally the saino or even somewhat higher, they ire greatly reduced in fact by iho lipid increase of a spurious cur rency, which, as it appears to malm money abound, Ihey aro at first inclined to consider a blessing. 'It is not bo with the speculator, by whom this operation is bolter understood, and is made lo contribute lo his advantage. It is nol until the prices of the nccessirics'of life becomo so dear that the laboring classes cannot supply ihcir wants outoflhcir wages, that Iho wages ti-o, and prnduallv reach a justly proportioned ralo lo that'of tdo pro uucin oi mo lauor. wncn liius'Dy tlio de preciation in consequence ol tho quantity of paper' in circuUton, wages as wellas prices becomo exorbitant, il is soon found Ihat tho whole effect ofllin adulteration is a tariff on our home indmlry for Iho benefit of iho coun tries where gold and silver circulate and maintain uniformity and moderation in pri ces. Jl is then perceived that Iho enhance ment of tho price of land and labor produces a corresponding increaso in the price ofproduci oniii mcc prnnuciH no nni su-ianr a compe tition Willi similar ours in other countries; and thus both mauul'iulutcd and agricjltural urn- duclioiis cease lo bcarcxpnrtaliou from tho country ofthe spurious currency, because thsv cannot ho sold for cost. Thin is the mocers by which specie is banished by Iho paper of lha bunks. Thoir vaults aro soon exhausted to pay for foreign commodities ; tho next step is a stoppage of specie payment; a total de gradation of paper as a currency ; unusual depression ofpiicos; tho rum of debtors, and the accumulation ol property m iho hands of creditors and cautious capitalists. ' It was in view of these evils, together with the dangerous power wielded by the Monk of the united Slates, and its repng. nance to our Constitution, that 'was indu ced tu exert the power conferred upon me by I he American people, to prevent tho continuance n Ihat Institution. Bui ol though various dangers lo our republican institutions havo been nbviotcd by the fail ure of that Bank to extort from the 'Gov. eminent a renewal of its charter it is obvi oils that little lias been accomplished, ex cept a saluiary chango of public opinion, towards restoring to ihc country tho sound currency provided for in the 'Constitution. In the acts ofscveral ofilie Stoles, prohib iting the circulation ofunall notes, and the auxiliary cnacimenls of 'Congrcss at the last Session, forbidding their reception or payment on public accoonl, the truo policy of Ihe couniry has been advanced, and a largo portion ofiho precious meinls infused into our circulating medium. These meas. tires will probably be followed up in due time, by the enactment of Stato laws, ban tiding from circulating bank notes of etill higher denominations; and tho object may be materially promoted by further nets of Congress, forbidding the employment, as fiscal agents, nfsuch banks as continue tu issue notes oTIow denominations, and llirow impediments in the way of tho circulation of gold and silver. The efTecIs of an extension of bank crcd its and over issues ol bank'pupcr, have been strikingly illustrated in thu sales nf Ihc public lauds. From tho returns mddo by the various Registers ond Receivers in lin early part of last summer, il was perceived lha receipts arising from the sales of the public lands were increasing to an unpre cedented amount. In effect, however these receipts nmountcd lo nothing mnre than credits in bank. Tho banks lent out llietr notes to speculators; they were paid to the Receivers, and immediately returned In the hanks, In be lent out again n ml again, be ing mere instruments lo transler lo specu lators tho mn,l' valuable public laud, and pay I lie Government 'by a credit on the books of the banks. Those credits on tin1 books of some of the western bunks, usual ly called depnsttes, wore already greatly beyond their immediate means orpaynvMit, and were rapidly increasing. Indeed each speculation furnished rncaiM for no sooner had one individual or company paid in the nnlcs, than they wore immediately lent In another for a like purpose, and ihc banks were extending their business and their is s'ues so largely, as to alarm considerate men and render it doubtful whether these bank credits, if permitted tn accumulate, would ultimately be of tho Icost value to tho Government. The spirit of expansion and speculation was not confined lo the de positc banks but pervaded the whole mul titude of banks throughout the Union, and waVgiving rise lo new institutions to ag grnvsto tho evil. The safety oflhcpublic funds, and the interest ofthe pcnple generally, required that these operations should be chucked; and it became Iho duty of every branch nf the General and 'Stato Governments lo adopt all legitimate & proper moans tu produce thai sahnurv effect. Under Idis view of my duly. I directed tdo issuing of t he nrder which will be laid before you by tho Secretary ol the Treasury, requiring payment for the public lands sold lo be made in specie, wilh an exception uulil tin; loth (if the present monlh.in favor nf actual settlors. 'This measure has produced many salutary consequences. i checki'd Hi- ca reer nf the western bank-1, and gave tllclii additional strength in anticipation 'of the pressure which litis since pervaded our ens. tern as well ns tdo European cniuniercuil cities. By preventing the extension nl'ili credit system, it measurably cut off I lit means nf speculation, and retarded its pro gress in monopolizing t lie most valuble of the public lands. Il'lias) tended tu save tin; new States from a nnu-resident proprietor sdip, one uf tdo grcnlcst obstacles tn iho advancement of a new couniry and Ihe prosperity of on old one. It has tended in keep open Ihe public lands lor entry by em igrnnls at Governui 'lit prices, in-ti-nil nf their boiiig compelled to purchase of spec, ulalors at double nr treble prices. 'Aiid it is conveying into the interior large sums in silver and gold, there to enter permanently into iho currently oftho country, and place it on a firmer foundation. It is confident, ly believed that the cjuntry will find in I In motives which induced thai order, and the happy consequences which 'will dsve en sued, much to commend and nuldiug to condemn. , Il remains for Congress, if l liny approve iho policy which dictated this order, lo fol low it up in its various bearings. Much good, in my judgment, would be produced by prohibiting sales uf the public lauds. ex cept to nc'nal settlers, at a reasonable re- duel ton ol price, and In limit the , quantity which shall be sold to them. Alilioo"h u is believed the General Government never might io receive any ilinig but the cnn-iitii lionnl currency in exchange for Ino public lands that point would be of less iuipnrlance if Iho lauds were sold for immediate settle mnnt nnd cultivation. Indeed, there is scarcely n mischief arising out of our pres ent land system, including the nccuninlaling surplus of revenue, which would not un remedied nt once by a restriction on land sales lo actual settlors; and it promises other advantage to tho country in general, and to tho newStales in particular, which cai'lint fail to rcei'ivn the most profound consideration 'of Congress, 'Experience continue- to realize Iho ex peciations enii'riained as to the capacity of tliebtale Hunks to perlorm the duties ul fiscal agents for thu (lovernoi 'iit, at the tune of tho removal of thu depositc Ii was alleged by the advocates of llu; Bank of ihe United Stales lhat'thn State' banks, whatever might be the regulations ofthe Treasury Department, cnuld not mnkn Ihe transfers required by the Governuieiu, nr negotiate the domestic exchanges of ihc couniry. ' Il is now wi'll ascertained Ihat tho real domestic exchang.- performed, through di-coiiuts, by thu Unit, id Suites Hank and ils twenty five branches. were at least one third less than those of Ihe depos itc banks lor an equal period of time; and if a comparison be instituted between ihe amounts of service rendered by those jnsli Intions, tin iho broader basis which has been' used by the advocates nf lio United States Bank in estimating' what they con side." the domestic Exchanges irnns icted by it, ihe result will bo still mure favorable to the depositc banks. The whnle nmonnt ol public money transferred by th" bank nf the United Status in 1032, -was ' 10 000 000 The amounl transferred and actually paid hy iho ih-pos itc hanks in the vear 'ending tlnv first nf October last was jg39 319. U99: Ihe amount transferred and paid between that period and the sixth nf-'Nnvemberwas-' (J5.399.000; and the amount of transfer war-ants out standing on Ihat day was'l-l.-l30 000: ma kine a:i aggrcgrateofjj59,l60 1191. These enormous sums of money first MiKniinned havo been transferred with Hie greatest promptitude and regularity, and the rales at which the exchanges haver been negncia ted' previously to Ihe passago ofthe deposit" act,' werngenerally bebiw those charged by tho Bank of the United Siat. Indepcnd. enily of these services which ao far great or than I hose lendereir by the United Slates Bank, and lis iweuly-fivc branches, a niim ber nf the depusite banks have, with a com inendoblc zeal lo aid in the improvement of the currency, imported from abroad, at their own-expense, large sums of the precious met n Is, fur coinage ond circulation. In Iho same manner have nearly all the predict inns turned out in re'ppct lo the ef fect of the removal of Iho deposilcs a step unquestionably necessary to prevent the evils which it was foreseen the bank itself would endeavor to create. in a final struggle tn procure ii renewal uf its charter. It may be thus, Ino, in e o degree, wilh tho lur- Iher steps which may bo taken lo prevent Ihe nvcessivo issue nf other bank paper; but it is lo be hoped Ihat nntlling'will now til ler ihe Federal and Slate authorities from the firm ond vigorous performance of their duties In themselves and tu the people in this respect. In reducing the revenue to the wants of the Government, your particular attention is invited lo Ihose'arlicles which constitute llin ucnsnrips nf life. The duty on sail was laid as'a war tax, and was no doiibi continued to assist in providing for the pay. ment of tho'war deht. There is no article I In- reh'aso of which frmn taxation woidil bis fell so generally nnd so beneficially. To this may he added nil kind-of fuel ond pro visions. Justice and benevolence tiiiilo in favor of releasing Ihe poor cifotir cities from burdens which arc not necessary to Ihe support ofour Government, and lend only to increaso the wants of the destitute. It will bo seen hy Ihe report oflho'Sec rotary oflhu Treasury, nnd I he 'nccrttni-a-nyitlg'documeniH, Ihat the Bank oftho Uni ted Stales has mode no payment on account of ihe stuck held by Ihe government in that in.siitnlion, nlllinugli urged tn pay any por tion which tn 'ht suit its convenience, and that il has given no information when pay ment may be expected. Nor, oltnugh re peatedly requested, has il furnished the in formation tu relation to ils condition, which congress authorized Iho- Senretnry to' co! lect'al their last session; such uiensuruS'as aro within the p-lwcr hf ihe Executive.have been taken to nscerinin tho value nf the stock, and procure the payment ns early as possible. The lessons taught by the Bank of the United Slates counut well be Inst upon the American people. 'They 'will lake can never again lo place o tremendous a pnw cr in irrc-pnnsjhlo bailds, uud it will be fortunate if Ihey seriously consider Ihc rnnseqit'-nccs which nro likely tn resnli on a smaller' scale' from Ihc lacillly 'wn h which corporate powers art- gnn-pd by the "Stale Governments. -It is believed that Hie law of the last ses'-inn. regulating Ihi-'di-pnsil banks, operates niieronsly and iilij-i-lly upon ih'-m in many ru-pects : and it Is Imped thai' Congress on proper repre. sniuation. will adopt the modifications which are necessary lo prevent this con sequence. The report of the Secretary of War nd interim, and Ihe accompanying dilciiinenis. all winch arc herewith laid Ind'orc von. will give y-ii a lull vn-w nl the diversified and iinporiaui operations of that Department (luring i no pa-i year. Tin: mihlarry movements rendered ne cessary by tin; aggressions of the lio-tih- portion of Ihc Seminnles and Creek tribe.-of- Indians, nml by other circum-lances liavr- required the active employment of nearly nnr whnlu regular force, including the marine corps, nnd ol lamp bodies ot militia ond volunteers. With all these ovpiiJs, so for os they were known ot Hit- seal oi (.iiivcrmnent Dclorp Ihc termination of your lost session, yon nro already jc qnatnleil: and it is therefore only needful in mis pince in lay lielore yon a brief sum. inary of what has since neenr-ed. Thn war wilh Iho Seminoles during Ihp summer, was, on our pari, chii fly confined to the proiecion nf our frontier .setllcinenis. I'rnurlhe incursions ofthe eneinv; and ns a nncpsary -nnd iinnnrtanl means (i)r ,(. nccnmplisltinntit nfinnt end lo the main lenancu oftho post previously established. In ihe rourst; of this duty, several neltnns look place in which the bravery and dis, ciplini- of both officers and men were con spicuously displayed, and which I have deemed il proper lo not ice. in respect tn Ihc former, by Ihe graining of brevet rank fur gallant Rervices in Ihe field. Bill as Iho fore-of Ihe Indians was not so fur weak. 'lied by llieso partial successes, ns In lean them to snlimii, nnd as their savage inroads were frequently rjpenied, cariv measures were taken for placing nt iho ills' po-nl of Call, who as coniinader in chief of the territorial militia. Iiad-b 'en temporarily invested with Ihc command, an ninplo force, for 'Iho purposo of resuming offensive ope rations in the mo-t efficient manner, sn soon ns Iho season should permit. Maj ir General Jesup was also directed nn (he conclusion or his duties in the Creek cniin try, In repair tu Florida and resume the command. The result of the first movement made by the forces under the direction of Gov rnor Call, in October last, as delniled in the nrcoinpnoying papers, excited much surprise and disappointment. A full ex planation has been required of the causes which led to the failure of that movement, hut has not vet been received. In I lie menu inn- il was feared that tin- healili of Gov. Call, who was understood lo havn suffered much from sickness, might not bo adeqiia'o to the crisis, and as Mojnr Gene rnl Josuii wns known lo hnvo resched Flor ida, thn! officer was directed in assume the command, nnd to prosecute all needful ipetatioiis with Ihe uniwi promptitude and vigor- From the force at Ins disposal, aim me Dispositions no has mnde nnd is instructed lo moke, and fruui Ihc lery pffi. cient measures which it is since ascertain ciPlmvo been lakcn by Governor Call, there is reason lo hope I list they will soun be enabled to reduce the enemy lo snbjcc linn. In ihe mean lime, as you will per ceive irom the report ol tho secretary, there is urgent necessily for furl her appro prirttinns lo siipprcss'lhcio hostilities. "Happily fnr'lho interests of humanity, ihe hnstihtias-wiih the Creeks were bni'i lo a" close si-on after your adjournment, without that effusion sif' blond which at' sine lnno was apprehended as inevitable ii... ........ a. i -i . ..,...u. niiuuiissiou nt Ihc Hostile parly was followed by l heir speedy removal lo the couniry assigned for them west nl the Mississippi. The inquiry as to alleged frauds in the purcha-c nf tdo reservations oflliesi; Indians, and Ihe causes of their hostilities, requested hy the resolution ol iIip House of Representatives of Ihe first nf July last, in bo made by tho President, is now going on, through the Bgency of commissioners appointed for thai purpose. Thctr report may be expected during your present session. The difficulties apprehended in the Cher okee couniry have been prevented, ond tho peace and safely of thai region nnd its vi cinity effectually secured, by the timely measures taken by the War Department, nnd still continued. Tho dicretinnary authority given to General Gaines lo cross the Sabine, and 10 occupy a position as fur west as Nncog. docliCK in case he should deem such a step necessary tn the protection nf ihe frontier, odd to the fulfilment of simulations con- mined in nur treaty with Mexico, and Iho movement subsequently made by that offi. cer. havo'bei-n alluded lo in a former part nflbis Message. Al thn dole uf 1 ho latest intelligence from Nacogdoches, our troops were yet nl that station; hut the officer who has succeeded General Gaines has re. ceotly been advised thai from the facts known at tho seat of gnverninciii, ihere would seeni lo be no adequate cause fur any longer maintaining Ihat position; and he Was accordingly in-trucled, in case the trooos worn not nlrendy withdrawn under the discretionary powers before possessed by him lo give the requisite nrders for that purnuso on the receipt of the instruction's unless ho shall then hnvn in his possession Such inflir-nalinn ns shall satisfy linn llia't tlicmainlpnnlicc ofthe post is essential t! the protection of our frontiers, and to Ihe doe execution of our treaty stipulations as previously explained to linn Whilst the necessities existing during the present year, for the service of mililia ond volunteers have lurnished new proofs of the patriotism nf our lelloAr citizens, they hnvo also strongly illustrated the tnf pnrinnce of nn increase in Iho rank and file, nf ihe regular army. The views nf the subject siibmilted by the secretary of War, in Ins report, meet my enlire concurrence : nnd nre earnestly ntnninended In Ihe delib erate atlcntihn nf Congress. In this con nection it is also proper to rpinmd you, that the defects in our present mililia sys tem nro every day rendered more and inoro apparent. The duty nf making further provision 'by law fur 'organizing, arming and disciplining this nnn of defence, hag been so repe.nedly presontrd lo Congress by myself nnd my predeces-ors, tllaf I deem 11 sufficient on this neensimr lo refer lo the la-l annual inesragp. n nil to' former Ett-cu nvo eniniinicniions in which this subject has'bePii'discu-sed. -It 'appears from Iho reports nT the officers cli-irgi'-d with inns. Inring into rv'ci thu volunteer- called for under ilie set of Congress nf the la.-l sesioti. thai more pre-onled themselves i.t llicplnei- of retid-zvous in'Tenties-ce than were sufficient to 'meet the rrquwitiuu which had been made by the Secretary of War 'iipnn the Governor nl that S'ate, This was occasioned bv Ihn nmt-ainn of Ihe Governor lo apportion the requisition tn the d ff.-renl regiinents of indiin, so as tuiibintn the proper number ol' trie-ps and no more. It eenis bo' ju-l tn the patriot ic citizens who repaired lo the general rendezvous, tinder circum-lances million zing Idem to believe that their seivlces were needed nnd would be oecepied, that the expenses incurred by Idem while absent from their homes should be paid by the Government. I accordingly recommend that a law tn tins effect be passed by duigrr-.s-, giving them a compensation which will ever their expen-es nn the nnrcli to nnd from the place -if rendezvou-, and whil-.-lhere; m connect inn wn h winch, It will nl-o he prop, r In mike provision for such ol her equable claims growing mil i,f the service ( iIR union as may not bo embraced in llu; oi-ling laws. On Ihe unexpected breaking nn! of hos. tilities in Florida. Alabama." nnd Geur gii, it became, ncces-nry. fn some cases, l- Inko tin- properly lit individual- for pub. lie use. I'rovM,,,, sliimhr be made by law for indemnifying tin; owners ; and I would also respectfully suggest whether snmo prnvis-nn may nol be made, consistently with the principles nf our Government, for fne relief of Hie sufferers by Indian depre dations, or by the operations uf our own t roups. No lime was Ion after Iho making nf tho requisite appropriation, in resiiuiMig the great national work, ond nf plocing "thm in a proper stale of defence. ln"eonso. qnence hnwever, of ihe very late day at which inoso puis wero passed, but liltlo prngress could be made during ihe season which had just closed. A very lar-c a mnnnl ofthe money granted ot vour lat session, accordiiif ly, rem i ins unexpended ; but as 'he work will bo again resumed at Ihe earliest moment in the cnnnm sprin", the balance of ihe existing appropriation, and in several cases which will be laid belore you itilh the proper estimates, fur ther sums for the like objects, may be use-fully expended during the nexl year. The recommendations of nn increase in the engineer corps, and P.r a reor.nn'za. lion ol the Topographical corpse, submit led lo vou in my ln-l annual messn"e, de rive additional slu-ngid from the great em barrasmeuls experienced during ina nre. enl year, in those branches oftho service nnn muter which Ihey are now sntlering, heveral nl llu: must unportnnl surveys nn.l cnnstriicltniH directed by recent laws, havo been suspended in con.-cnuenee of the , nf an adequate force in Ihcse corps. The like (ibservolinn may be applied lo ihe Ord nance corps, and the General Stuff tho operations of which, as ihey are now or ganized, must cither be frequently inter rupted or performed by officers taken from iho ine ol the army, to the greal prejudice ol tho service. Fur r, general view of ,0 condition or Ihe Military Arcademy. and of other bran dies of the military servico not already noticed, as well ns f,,r fuller illustrations ot llioso which have been mentioned, refer you to l he accompanying document, and amnng I he vnrinns proposals contained therein for legislative action, I would pr itcularly nntico tho Srcremry of War for the revision ami pay of ihe ormv, as enti-" tied to your favorable regard. The nalinnal policy, founded alike in interpst and humanity, so nn ond to steadily pursued by this Government, for the reinovjl nf the Indian tribes urii'inillv etlled on this side of Mississipi. To tho west side of that river, may be said to hive been cim-innuiaied by the conclusion oftho .ny ,n,.t ' "'C CI,e-ro,ie7- Th. rn.a.nie. taken in tho execution of that treaty, md

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