We have reason to renew the expression of our devout gratitude to the Giver of All Good for His benign protection. Our country presents on every side the evidences of that continued favor under whose auspices it, has gradually risen from a few feeble and dependent colonies to a prosperous and powerful confederacy. We are blessed with domestic tranquillity and all the elements of national prosperity. The pestilence which, invading for a time some flourishing portions of the Union, interrupted the general prevalence of unusual health has happily been limited in extent and arrested in its fatal career. The industry and prudence of our citizens are gradually relieving them from the pecuniary embarrassments under which portions of them have labored; judicious legislation and the natural and boundless resources of the country have afforded wise end timely aid to private enterprise, and the activity always characteristic of our people has already in a great degree resumed its usual and profitable channels. The condition of our foreign relations has not materially changed since the last annual message of my predecessor. We remain at peace with all nations, and no efforts on my part consistent with the preservation of our rights and the honor of the country shall be spared to maintain a position so consonant to our institutions. We have faithfully sustained the foreign policy with which the United States, under the guidance of their first President, took their stand in the family of nations--that of regulating their intercourse with other powers by the approved principles of private life; asking and according equal rights and equal privileges; rendering and demanding justice in all cases; advancing their own and discussing the pretensions of others with candor, directness, and sincerity; appealing at all times to reason, but never yielding to force nor seeking to acquire anything for themselves by its exercise. A rigid adherence to this policy has left this Government with scarcely a claim upon its justice for injuries arising from acts committed by its authority. The most imposing and perplexing of those of the United States upon foreign governments for aggressions upon our citizens were disposed of by my predecessor. Independently of the benefits conferred upon our citizens by restoring to the mercantile community so many millions of which they had been wrongfully divested, a great service was also rendered to his country by the satisfactory adjustment of so many ancient and irritating subjects of contention; and it reflects no ordinary credit on his successful administration of public affairs that this great object was accomplished without compromising on any occasion either the honor or the peace of the nation. With European powers no new subjects of difficulty have arisen, and those which were under discussion, although not terminated, do not present a more unfavorable aspect for the future preservation of that good understanding which it has ever been our desire to cultivate. Of pending questions the most important is that which exists with the Government of Great Britain in respect to our northeastern boundary. It is with unfeigned regret that the people of the United States must look back upon the abortive efforts made by the Executive, for a period of more than half a century, to determine what no nation should suffer long to remain in dispute--the true line which divides its possessions from those of other powers. The nature of the settlements on the borders of the United States and of the neighboring territory was for a season such that this, perhaps, was not indispensable to a faithful performance of the duties of the Federal Government. Time has, however, changed this state of things, and has brought about a condition of affairs in which the true interests of both countries imperatively require that this question should be put at rest. It is not to be disguised that, with full confidence, often expressed, in the desire of the British Government to terminate it, we are apparently as far from its adjustment as we were at the time of signing the treaty of peace in 1783. The sole result of long-pending negotiations and a perplexing arbitration appears to be a conviction on its part that a conventional line must be adopted, from the impossibility of ascertaining the true one according to the description contained in that treaty. Without coinciding in this opinion, which is not thought to be well rounded, my predecessor gave the strongest proof of the earnest desire of the United States to terminate satisfactorily this dispute by proposing the substitution of a conventional line if the consent of the States interested in the question could be obtained. To this proposition no answer has as yet been received. The attention of the British Government has, however, been urgently invited to the subject, and its reply can not, I am confident, be much longer delayed. The general relations between Great Britain and the United States are of the most friendly character, and I am well satisfied of the sincere disposition of that Government to maintain them upon their present footing. This disposition has also, I am persuaded, become more general with the people of England than at any previous period. It is scarcely necessary to say to you how cordially it is reciprocated by the Government and people of the United States. The conviction, which must be common to all, of the injurious consequences that result from keeping open this irritating question, and the certainty that its final settlement can not be much longer deferred, will, I trust, lead to an early and satisfactory adjustment. At your last session I laid before you the recent communications between the two Governments and between this Government and that of the State of Maine, in whose solicitude concerning a subject in which she has so deep an interest every portion of the Union participates. The feelings produced by a temporary interruption of those harmonious relations between France and the United States which are due as well to the recollections of former times as to a correct appreciation of existing interests have been happily succeeded by a cordial disposition on both sides to cultivate an active friendship in their future intercourse. The opinion, undoubtedly correct, and steadily entertained by us, that the commercial relations at present existing between the two countries are susceptible of great and reciprocally beneficial improvements is obviously gaining ground in France, and I am assured of the disposition of that Government to favor the accomplishment of such an object. This disposition shall be met in a proper spirit on our part. The few and comparatively unimportant questions that remain to be adjusted between us can, I have no doubt, be settled with entire satisfaction and without difficulty. Between Russia and the United States sentiments of good will continue to be mutually cherished. Our minister recently accredited to that Court has been received with a frankness and cordiality and with evidences of respect for his country which leave us no room to doubt the preservation in future of those amicable and liberal relations which have so long and so uninterruptedly existed between the two countries. On the few subjects under discussion between us an early and just decision is confidently anticipated. A correspondence has been opened with the Government of Austria for the establishment of diplomatic relations, in conformity with the wishes of Congress as indicated by an appropriation act of the session of 1837, and arrangements made for the purpose, which will be duly carried into effect. With Austria and Prussia and with the States of the German Empire (now composing with the latter the Commercial League) our political relations are of the most friendly character, whilst our commercial intercourse is gradually extending, with benefit to all who are engaged in it. Civil war yet rages in Spain, producing intense suffering to its own people, and to other nations inconvenience and regret. Our citizens who have claims upon that country will be prejudiced for a time by the condition of its treasury, the inevitable consequence of long-continued and exhausting internal wars. The last installment of the interest of the debt due under the convention with the Queen of Spain has not been paid and similar failures may be expected to happen until a portion of the resources of her Kingdom can be devoted to the extinguishment of its foreign debt. Having received satisfactory evidence that discriminating tonnage duties were charged upon the vessels of the United States in the ports of Portugal, a proclamation was issued on the 11th day of October last, in compliance with the act of May 25, 1832, declaring that fact, and the duties on foreign tonnage which were levied upon Portuguese vessels in the United States previously to the passage of that act are accordingly revived. The act of July 4, 1836, suspending the discriminating duties upon the produce of Portugal imported into this country in Portuguese vessels, was passed, upon the application of that Government through its representative here, under the belief that no similar discrimination existed in Portugal to the prejudice of the United States. I regret to state that such duties are now exacted in that country upon the cargoes of American vessels, and as the act referred to vests no discretion in the Executive, it is for Congress to determine upon the expediency of further legislation on the subject. Against these discriminations affecting the vessels of this country and their cargoes seasonable remonstrance was made, and notice was given to the Portuguese Government that unless they should be discontinued the adoption of countervailing measures on the part of the United States would become necessary; but the reply of that Government, received at the Department of State through our charge d'affaires at Lisbon in the month of September last, afforded no ground to hope for the abandonment of a system so little in harmony with the treatment shown to the vessels of Portugal and their cargoes in the ports of this country and so contrary to the expectations we had a right to entertain. With Holland, Sweden, Denmark, Naples, and Belgium a friendly intercourse has been uninterruptedly maintained. With the Government of the Ottoman Porte and its dependencies on the coast of the Mediterranean peace and good will are carefully cultivated, and have been fostered by such good offices as the relative distance and the condition of those countries would permit. Our commerce with Greece is carried on under the laws of the two Governments, reciprocally beneficial to the navigating interests of both; and I have reason to look forward to the adoption of other measures which will be more extensively and permanently advantageous. Copies of the treaties concluded with the Governments of Siam and Muscat are transmitted for the information of Congress, the ratifications having been received and the treaties made public since the close of the last annual session. Already have we reason to congratulate ourselves on the prospect of considerable commercial benefit; and we have, besides, received from the Sultan of Muscat prompt evidence of his desire to cultivate the most friendly feelings, by liberal acts toward one of our vessels, bestowed in a manner so striking as to require on our part a grateful acknowledgment. Our commerce with the islands of Cuba and Porto Rico still labors under heavy restrictions, the continuance of which is a subject of regret. The only effect of an adherence to them will be to benefit the navigation of other countries at the expense of both the United States and Spain. The independent nations of this continent have ever since they emerged from the colonial state experienced severe trials in their progress to the permanent establishment of liberal political institutions. Their unsettled condition not only interrupts their own advances to prosperity, but has often seriously injured the other powers of the world. The claims of our citizens upon Peru, Chili, Brazil, the Argentine Republic, the Governments formed out of the Republics of Colombia and Mexico, are still pending, although many of them have been presented for examination more than twenty years. New Granada, Venezuela, and Ecuador have recently formed a convention for the purpose of ascertaining and adjusting claims upon the Republic of Colombia, from which it is earnestly hoped our citizens will ere long receive full compensation for the injuries inflicted upon them and for the delay in affording it. An advantageous treaty of commerce has been concluded by the United States with the Peru-Bolivian Confederation, which wants only the ratification of that Government. The progress of a subsequent negotiation for the settlement of claims upon Peru has been unfavorably affected by the war between that power and Chili and the Argentine Republic, and the same event is also likely to produce delays in the settlement of out demands on those powers. The aggravating circumstances connected with our claims upon Mexico and a variety of events touching the honor and integrity of our Government led my predecessor to make at the second session of the last Congress a special recommendation of the course to be pursued to obtain a speedy and final satisfaction of the injuries complained of by this Government and by our citizens. He recommended a final demand of redress, with a contingent authority to the Executive to make reprisals if that demand should be made in vain. From the proceedings of Congress on that recommendation it appeared that the opinion of both branches of the Legislature coincided with that of the Executive, that any mode of redress known to the law of nations might justifiably be used. It was obvious, too, that Congress believed with the President that another demand should be made, in order to give undeniable and satisfactory proof of our desire to avoid extremities with a neighboring power, but that there was an indisposition to vest a discretionary authority in the Executive to take redress should it unfortunately be either denied or unreasonably delayed by the Mexican Government. So soon as the necessary documents were prepared, after entering upon the duties of my office, a special messenger was sent to Mexico to make a final demand of redress, with the documents required by the provisions of our treaty. The demand was made on the 20th of July last. The reply, which bears date the 29th of the same month, contains assurances of a desire on the part of that Government to give a prompt and explicit answer respecting each of the complaints, but that the examination of them would necessarily be deliberate; that in this examination it would be guided by the principles of public law and the obligation of treaties; that nothing should be left undone that might lead to the most speedy and equitable adjustment of our demands, and that its determination in respect to each case should be communicated through the Mexican minister here. Since that time an envoy extraordinary and minister plenipotentiary has been accredited to this Government by that of the Mexican Republic. He brought with him assurances of a sincere desire that the pending differences between the two Governments should be terminated in a manner satisfactory to both. He was received with reciprocal assurances, and a hope was entertained that his mission would lead to a speedy, satisfactory, and final adjustment of all existing subjects of complaint. A sincere believer in the wisdom of the pacific policy by which the United States have always been governed in their intercourse with foreign nations, it was my particular desire, from the proximity of the Mexican Republic and well-known occurrences on our frontier, to be instrumental in obviating all existing difficulties with that Government and in restoring to the intercourse between the two Republics that liberal and friendly character by which they should always be distinguished. I regret, therefore, the more deeply to have found in the recent communications of that Government so little reason to hope that any future efforts of mine for the accomplishment of those desirable objects would be successful. Although the larger number--and many of them aggravated cases of personal wrongs--have been now for years before the Mexican Government, and some of the causes of national complaint, and those of the most offensive character, admitted of immediate, simple, and satisfactory replies, it is only within a few days past that any specific communication in answer to our last demand, made five months ago, has been received from the Mexican minister. By the report of the Secretary of State herewith presented and the accompanying documents it will be seen that for not one of our public complaints has satisfaction been given or offered, that but one of the cases of personal wrong has been favorably considered, and that but four cases of both descriptions out of all those formally presented and earnestly pressed have as yet been decided upon by the Mexican Government. Not perceiving in what manner any of the powers given to the Executive alone could be further usefully employed in bringing this unfortunate controversy to a satisfactory termination, the subject was by my predecessor referred to Congress as one calling for its interposition. In accordance with the clearly understood wishes of the Legislature, another and formal demand for satisfaction has been made upon the Mexican Government, with what success the documents now communicated will show. On a careful and deliberate examination of their contents, and considering the spirit manifested by the Mexican Government, it has become my painful duty to return the subject as it now stands to Congress, to whom it belongs to decide upon the time, the mode, and the measure of redress. Whatever may be your decision, it shall be faithfully executed, confident that it will be characterized by that moderation and justice which will, I trust, under all circumstances govern the councils of our country. The balance in the Treasury on the 1st January, 1837, was $45,968,523. The receipts during the present year from all sources, including the amount of Treasury notes issued, are estimated at $23,499,981, constituting an aggregate of $69,468,504. Of this amount about $35,281,361 will have been expended at the end of the year on appropriations made by Congress, and the residue, amounting to $34,187,143, will be the nominal balance in the Treasury on the 1st of January next; but of that sum only $1,085,498 is considered as immediately available for and applicable to public purposes. Those portions of it which will be for some time unavailable consist chiefly of sums deposited with the States and due from the former deposit banks. The details upon this subject will be found in the annual report of the Secretary of the Treasury. The amount of Treasury notes which it will be necessary to issue during the year on account of those funds being unavailable will, it is supposed, not exceed four and a half millions. It seemed proper, in the condition of the country, to have the estimates on all subjects made as low as practicable without prejudice to any great public measures. The Departments were therefore desired to prepare their estimates accordingly, and I am happy to find that they have been able to graduate them on so economical a scale. In the great and often unexpected fluctuations to which the revenue is subjected it is not possible to compute the receipts beforehand with great certainty, but should they not differ essentially from present anticipations, and should the appropriations not much exceed the estimates, no difficulty seems likely to happen in defraying the current expenses with promptitude and fidelity. Notwithstanding the great embarrassments which have recently occurred in commercial affairs, and the liberal indulgence which in consequence of these embarrassments has been extended to both the merchants and the banks, it is gratifying to be able to anticipate that the Treasury notes which have been issued during the present year will be redeemed and that the resources of the Treasury, without any resort to loans or increased taxes, will prove ample for defraying all charges imposed on it during 1838. The report of the Secretary of the Treasury will afford you a more minute exposition of all matters connected with the administration of the finances during the current year--a period which for the amount of public moneys disbursed and deposited with the States, as well as the financial difficulties encountered and overcome, has few parallels in our history. Your attention was at the last session invited to the necessity of additional legislative provisions in respect to the collection, safe-keeping, and transfer of the public money. No law having been then matured, and not understanding the proceedings of Congress as intended to be final, it becomes my duty again to bring the subject to your notice. On that occasion three modes of performing this branch of the public service were presented for consideration. These were, the creation of a national bank; the revival, with modifications, of the deposit system established by the act of the 23d of June, 1836, permitting the use of the public moneys by the banks; and the discontinuance of the use of such institutions for the purposes referred to, with suitable provisions for their accomplishment through the agency of public officers. Considering the opinions of both Houses of Congress on the first two propositions as expressed in the negative, in which I entirely concur, it is unnecessary for me again in to recur to them. In respect to the last, you have had an opportunity since your adjournment not only to test still further the expediency of the measure by the continued practical operation of such parts of it as are now in force, but also to discover what should ever be sought for and regarded with the utmost deference--the opinions and wishes of the people. The national will is the supreme law of the Republic, and on all subjects within the limits of his constitutional powers should be faithfully obeyed by the public servant. Since the measure in question was submitted to your consideration most of you have enjoyed the advantage of personal communication with your constituents. For one State only has an election been held for the Federal Government; but the early day at which it took place deprived the measure under consideration of much of the support it might otherwise have derived from the result. Local elections for State officers have, however, been held in several of the States, at which the expediency of the plan proposed by the Executive has been. more or less discussed. You will, I am confident, yield to their results the respect due to every expression of the public voice. Desiring, however, to arrive at truth and a just view of the subject in all its bearings, you will at the same time remember that questions of far deeper and more immediate local interest than the fiscal plans of the National Treasury were involved in those elections. Above all, we can not overlook the striking fact that there were at the time in those States more than one hundred and sixty millions of bank capital, of which large portions were subject to actual forfeiture, other large portions upheld only by special and limited legislative indulgences, and most of it, if not all, to a greater or less extent dependent for a continuance of its corporate existence upon the will of the State legislatures to be then chosen. Apprised of this circumstance, you will judge whether it is not most probable that the peculiar condition of that vast interest in these respects, the extent to which it has been spread through all the ramifications of society, its direct connection with the then pending elections, and the feelings it was calculated to infuse into the canvass have exercised a far greater influence over the result than any which could possibly have been produced by a conflict of opinion in respect to a question in the administration of the General Government more remote and far less important in its bearings upon that interest. I have found no reason to change my own opinion as to the expediency of adopting the system proposed, being perfectly satisfied that there will be neither stability nor safety either in the fiscal affairs of the Government or in the pecuniary transactions of individuals and corporations so long as a connection exists between them which, like the past, offers such strong inducements to make them the subjects of political agitation. Indeed, I am more than ever convinced of the dangers to which the free and unbiased exercise of political opinion--the only sure foundation and safeguard of republican government--would be exposed by any further increase of the already overgrown influence of corporate authorities. I can not, therefore, consistently with my views of duty, advise a renewal of a connection which circumstances have dissolved. The discontinuance of the use of State banks for fiscal purposes ought not to be regarded as a measure of hostility toward those institutions. Banks properly established and conducted are highly useful to the business of the country, and will doubtless continue to exist in the States so long as they conform to their laws and are found to be safe and beneficial. How they should be created, what privileges they should enjoy, under what responsibilities they should act, and to what restrictions they should be subject are questions which, as I observed on a previous occasion, belong to the States to decide. Upon their rights or the exercise of them the General Government can have no motive to encroach. Its duty toward them is well performed when it refrains from legislating for their special benefit, because such legislation would violate the spirit of the Constitution and be unjust to other interests; when it takes no steps to impair their usefulness, but so manages its own affairs as to make it the interest of those institutions to strengthen and improve their condition for the security and welfare of the community at large. They have no right to insist on a connection with the Federal Government, nor on the use of the public money for their own benefit. The object of the measure under consideration is to avoid for the future a compulsory connection of this kind. It proposes to place the General Government, in regard to the essential points of the collection, safe-keeping, and transfer of the public money, in a situation which shall relieve it from all dependence on the will of irresponsible individuals or corporations; to withdraw those moneys from the uses of private trade and confide them to agents constitutionally selected and controlled by law; to abstain from improper interference with the industry of the people and withhold inducements to improvident dealings on the part of individuals; to give stability to the concerns of the Treasury; to preserve the measures of the Government from the unavoidable reproaches that flow from such a connection, and the banks themselves from the injurious effects of a supposed participation in the political conflicts of the day, from which they will otherwise find it difficult to escape. These are my views upon this important subject, formed after careful reflection and with no desire but to arrive at what is most likely to promote the public interest. They are now, as they were before, submitted with unfeigned deference for the opinions of others. It was hardly to be hoped that changes so important on a subject so interesting could be made without producing a serious diversity of opinion; but so long as those conflicting views are kept above the influence of individual or local interests, so long as they pursue only the general good and are discussed with moderation and candor, such diversity is a benefit, not an injury. If a majority of Congress see the public welfare in a different light, and more especially if they should be satisfied that the measure proposed would not be acceptable to the people, I shall look to their wisdom to substitute such as may be more conducive to the one and more satisfactory to the other. In any event, they may confidently rely on my hearty cooperation to the fullest extent to which my views of the Constitution and my sense of duty will permit. It is obviously important to this branch of the public service and to the business and quiet of the country that the whole subject should in some way be settled and regulated by law, and, if possible, at your present session. Besides the plans above referred to, I am not aware that any one has been suggested except that of keeping the public money in the State banks in special deposit. This plan is to some extent in accordance with the practice of the Government and with the present arrangements of the Treasury Department, which, except, perhaps, during the operation of the late deposit act, has always been allowed, even during the existence of a national bank, to make a temporary use of the State banks in particular places for the safe-keeping of portions of the revenue. This discretionary power might be continued if Congress deem it desirable, whatever general system be adopted. So long as the connection is voluntary we need, perhaps, anticipate few of those difficulties and little of that dependence on the banks which must attend every such connection when compulsory in its nature and when so arranged as to make the banks a fixed part of the machinery of government. It is undoubtedly in the power of Congress so to regulate and guard it as to prevent the public money from being applied to the use or intermingled with the affairs of individuals. Thus arranged, although it would not give to the Government that entire control over its own funds which I desire to secure to it by the plan I have proposed, it would, it must be admitted, in a great degree accomplish one of the objects which has recommended that plan to my judgment--the separation of the fiscal concerns of the Government from those of individuals or corporations. With these observations I recommend the whole matter to your dispassionate reflection, confidently hoping that some conclusion may be reached by your deliberations which on the one hand shall give safety and stability to the fiscal operations of the Government, and be consistent, on the other, with the genius of our institutions and with the interests and wishes of the great mass of our constituents. It was my hope that nothing would occur to make necessary on this occasion any allusion to the late national bank. There are circumstances, however, connected with the present state of its affairs that bear so directly on the character of the Government and the welfare of the citizen that I should not feel myself excused in neglecting to notice them. The charter which terminated its banking privileges on the 4th of March, 1836, continued its corporate power two years more for the sole purpose of closing its affairs, with authority "to use the corporate name, style, and capacity for the purpose of suits for a final settlement and liquidation of the affairs and acts of the corporation, and for the sale and disposition of their estate--real, personal, and mixed--but for no other purpose or in any other manner whatsoever." Just before the banking privileges ceased, its effects were transferred by the bank to a new State institution, then recently incorporated, in trust, for the discharge of its debts and the settlement of its affairs. With this trustee, by authority of Congress, an adjustment was subsequently made of the large interest which the Government had in the stock of the institution. The manner in which a trust unexpectedly created upon the act granting the charter, and involving such great public interests, has been executed would under any circumstances be a fit subject of inquiry; but much more does it deserve your attention when it embraces the redemption of obligations to which the authority and credit of the United States have given value. The two years allowed are now nearly at an end. It is well understood that the trustee has not redeemed and canceled the outstanding notes of the bank, but has reissued and is actually reissuing, since the 3d of March, 1836, the notes which have been received by it to a vast amount. According to its own official statement, so late as the 1st of October last, nineteen months after- the banking privileges given by the charter had expired, it had under its control uncanceled notes of the late Bank of the United States to the amount of $27,561,866, of which $6,175,861 were in actual circulation, $ 1,468,627 at State bank agencies, and $3,002,390 in transitu, thus showing that upward of ten millions and a half of the notes of the old bank were then still kept outstanding. The impropriety of this procedure is obvious, it being the duty of the trustee to cancel and not to put forth the notes of an institution whose concerns it had undertaken to wind up. If the trustee has a right to reissue these notes now, I can see no reason why it may not continue to do so after the expiration of the two years. As no one could have anticipated a course so extraordinary, the prohibitory clause of the charter above quoted was not accompanied by any penalty or other special provision for enforcing it, nor have we any general law for the prevention of similar acts in future. But it is not in this view of the subject alone that your interposition is required. The United States in settling with the trustee for their stock have withdrawn their funds from their former direct liability to the creditors of the old bank, yet notes of the institution continue to be sent forth in its name, and apparently upon the authority of the United States. The transactions connected with the employment of the bills of the old bank are of vast extent, and should they result unfortunately the interests of individuals may be deeply compromised. Without undertaking to decide how far or in what form, if any, the trustee could be made liable for notes which contain no obligation on its part, or the old bank for such as are put in circulation after the expiration of its charter and without its authority, or the Government for indemnity in case of loss, the question still presses itself upon your consideration whether it is consistent with duty and good faith on the part of the Government to witness this proceeding without a single effort to arrest it. The report of the Commissioner of the General Land Office, which will be laid before you by the Secretary of the Treasury, will show how the affairs of that office have been conducted for the past year. The disposition of the public lands is one of the most important trusts confided to Congress. The practicability of retaining the title and control of such extensive domains in the General Government, and at the same time admitting the Territories embracing them into the Federal Union as coequals with the original States, was seriously doubted by many of our wisest statesmen. All feared that they would become a source of discord, and many carried their apprehensions so far as to see in them the seeds of a future dissolution of the Confederacy. But happily our experience has already been sufficient to quiet in a great degree all such apprehensions. The position at one time assumed, that the admission of new States into the Union on the same footing with the original States was incompatible with a right of soil in the United States and operated as a surrender thereof, notwithstanding the terms of the compacts by which their admission was designed to be regulated, has been wisely abandoned. Whether in the new or the old States, all now agree that the right of soil to the public lands remains in the Federal Government, and that these lands constitute a common property, to be disposed of for the common benefit of all the States, old and new. Acquiescence in this just principle by the people of the new States has naturally promoted a disposition to adopt the most liberal policy in the sale of the public lands. A policy which should be limited to the mere object of selling the lands for the greatest possible sum of money, without regard to higher considerations, finds but few advocates. On the contrary, it is generally conceded that whilst the mode of disposition adopted by the Government should always be a prudent one, yet its leading object ought to be the early settlement and cultivation of the lands sold, and that it should discountenance, if it can not prevent, the accumulation of large tracts in the same hands, which must necessarily retard the growth of the new States or entail upon them a dependent tenantry and its attendant evils. A question embracing such important interests and so well calculated to enlist the feelings of the people in every quarter of the Union has very naturally given rise to numerous plans for the improvement of the existing system. The distinctive features of the policy that has hitherto prevailed are to dispose of the public lands at moderate prices, thus enabling a greater number to enter into competition for their purchase and accomplishing a double object--of promoting their rapid settlement by the purchasers and at the same time increasing the receipts of the Treasury; to sell for cash, thereby preventing the disturbing influence of a large mass of private citizens indebted to the Government which they have a voice in controlling; to bring them into market no faster than good lands are supposed to be wanted for improvement, thereby preventing the accumulation of large tracts in few hands; and to apply the proceeds of the sales to the general purposes of the Government, thus diminishing the amount to be raised from the people of the States by taxation and giving each State its portion of the benefits to be derived from this common fund in a manner the most quiet, and at the same time, perhaps, the most equitable, that can be devised. These provisions, with occasional enactments in behalf of special interests deemed entitled to the favor of the Government, have in their execution produced results as beneficial upon the whole as could reasonably be expected in a matter so vast, so complicated, and so exciting. Upward of 70,000,000, acres have been sold, the greater part of which is believed to have been purchased for actual settlement. The population of the new States and Territories created out of the public domain increased between 1800 and 1830 from less than 60,000 to upward of 2,300,000 souls, constituting at the latter period about one-fifth of the whole people of the United States. The increase since can not be accurately known, but the whole may now be safely estimated at over three and a half millions of souls, composing nine States, the representatives of which constitute above one-third of the Senate and over one-sixth of the House of Representatives of the United States. Thus has been formed a body of free and independent landholders with a rapidity unequaled in the history of mankind; and this great result has been produced without leaving anything for future adjustment between the Government and its citizens. The system under which so much has been accomplished can not be intrinsically bad, and with occasional modifications to correct abuses and adapt it to changes of circumstances may, I think, be safely trusted for the future. There is in the management of such extensive interests much virtue in stability; and although great and obvious improvements should not be declined, changes should never be made without the fullest examination and the clearest demonstration of their practical utility. In the history of the past we have an assurance that this safe rule of action will not be departed from in relation to the public lands; nor is it believed that any necessity exists for interfering with the fundamental principles of the system, or that the public mind, even in the new States, is desirous of any radical alterations. On the contrary, the general disposition appears to be to make such modifications and additions only as will the more effectually carry out the original policy of filling our new States and Territories with an industrious and independent population. The modification most perseveringly pressed upon Congress, which has occupied so much of its time for years past, and will probably do so for a long time to come, if not sooner satisfactorily adjusted, is a reduction in the cost of such portions of the public lands as are ascertained to be unsalable at the rate now established by law, and a graduation according to their relative value of the prices at which they may hereafter be sold. It is worthy of consideration whether justice may not be done to every interest in this matter, and a vexed question set at rest, perhaps forever, by a reasonable compromise of conflicting opinions. Hitherto, after being offered at public sale, lands have been disposed of at one uniform price, whatever difference there might be in their intrinsic value. The leading considerations urged in favor of the measure referred to are that in almost all the land districts, and particularly in those in which the lands have been long surveyed and exposed to sale, there are still remaining numerous and large tracts of every gradation of value, from the Government price downward; that these lands will not be purchased at the Government price so long as better can be conveniently obtained for the same amount; that there are large tracts which even the improvements of the adjacent lands will never raise to that price, and that the present uniform price, combined with their irregular value, operates to prevent a desirable compactness of settlements in the new States and to retard the full development of that wise policy on which our land system is founded, to the injury not only of the several States where the lands lie, but of the United States as a whole. The remedy proposed has been a reduction of the prices according to the length of time the lands have been in market, without reference to any other circumstances. The certainty that the efflux of time would not always in such cases, and perhaps not even generally, furnish a true criterion of value, and the probability that persons residing in the vicinity, as the period for the reduction of prices approached, would postpone purchases they would otherwise make, for the purpose of availing themselves of the lower price, with other considerations of a similar character, have hitherto been successfully urged to defeat the graduation upon time. May not all reasonable desires upon this subject be satisfied without encountering any of these objections? All will concede the abstract principle that the price of the public lands should be proportioned to their relative value, so far as can be accomplished without departing from the rule heretofore observed requiring fixed prices in cases of private entries. The difficulty of the subject seems to lie in the mode of ascertaining what that value is. Would not the safest plan be that which has been adopted by many of the States as the basis of taxation--an actual valuation of lands and classification of them into different rates? Would it not be practicable and expedient to cause the relative value of the public lands in the old districts which have been for a certain length of time in market to be appraised and classed into two or more rates below the present minimum price by the officers now employed in this branch of the public service or in any other mode deemed preferable, and to make those prices permanent if upon the coming in of the report they shall prove satisfactory to Congress? Could not all the objects of graduation be accomplished in this way, and the objections which have hitherto been urged against it avoided? It would seem to me that such a step, with a restriction of the sales to limited quantities and for actual improvement, would be free from all just exception. By the full exposition of the value of the lands thus furnished and extensively promulgated persons living at a distance would be informed of their true condition and enabled to enter into competition with those residing in the vicinity; the means of acquiring an independent home would be brought within the reach of many who are unable to purchase at present prices; the population of the new States would be made more compact, and large tracts would be sold which would otherwise remain on hand. Not only would the land be brought within the means of a larger number of purchasers, but many persons possessed of greater means would be content to settle on a larger quantity of the poorer lands rather than emigrate farther west in pursuit of a smaller quantity of better lands. Such a measure would also seem to be more consistent with the policy of the existing laws--that of converting the public domain into cultivated farms owned by their occupants. That policy is not best promoted by sending emigration up the almost interminable streams of the West to occupy in groups the best spots of land, leaving immense wastes behind them and enlarging the frontier beyond the means of the Government to afford it adequate protection, but in encouraging it to occupy with reasonable denseness the territory over which it advances, and find its best defense in the compact front which it presents to the Indian tribes. Many of you will bring to the consideration of the subject the advantages of local knowledge and greater experience, and all will be desirous of making an early and final disposition of every disturbing question in regard to this important interest. If these suggestions shall in any degree contribute to the accomplishment of so important a result, it will afford me sincere satisfaction. In some sections of the country most of the public lands have been sold, and the registers and receivers have very little to do. It is a subject worthy of inquiry whether in many cases two or more districts may not be consolidated and the number of persons employed in this business considerably reduced. Indeed, the time will come when it will be the true policy of the General Government, as to some of the States, to transfer to them for a reasonable equivalent all the refuse and unsold lands and to withdraw the machinery of the Federal land offices altogether. All who take a comprehensive view of our federal system and believe that one of its greatest excellencies consists in interfering as little as possible with the internal concerns of the States look forward with great interest to this result. A modification of the existing laws in respect to the prices of the public lands might also have a favorable influence on the legislation of Congress in relation to another branch of the subject. Many who have not the ability to buy at present prices settle on those lands with the hope of acquiring from their cultivation the means of purchasing under preemption laws from time to time passed by Congress. For this encroachment on the rights of the United States they excuse themselves under the plea of their own necessities; the fact that they dispossess nobody and only enter upon the waste domain: that they give additional value to the public lands in their vicinity, and their intention ultimately to pay the Government price. So much weight has from time to time been attached to these considerations that Congress have passed laws giving actual settlers on the public lands a right of preemption to the tracts occupied by them at the minimum price. These laws have in all instances been retrospective in their operation, but in a few years after their passage crowds of new settlers have been found on the public lands for similar reasons and under like expectations, who have been indulged with the same privilege. This course of legislation tends to impair public respect for the laws of the country. Either the laws to prevent intrusion upon the public lands should be executed, or, if that should be impracticable or inexpedient, they should be modified or repealed. If the public lands are to be considered as open to be occupied by any, they should by law be thrown open to all. That which is intended in all instances to be legalized should at once be made legal, that those who are disposed to conform to the laws may enjoy at least equal privileges with those who are not. But it is not believed to be the disposition of Congress to open the public lands to occupancy without regular entry and payment of the Government price, as such a course must tend to worse evils than the credit system, which it was found necessary to abolish. It would seem, therefore, to be the part of wisdom and sound policy to remove as far as practicable the causes which produce intrusions upon the public lands, and then take efficient steps to prevent them in future. Would any single measure be so effective in removing all plausible grounds for these intrusions as the graduation of price already suggested? A short period of industry and economy in any part of our country would enable the poorest citizen to accumulate the means to buy him a home at the lower prices, and leave him without apology for settling on lands not his own. If he did not under such circumstances, he would enlist no sympathy in his favor, and the laws would be readily executed without doing violence to public opinion. A large portion of our citizens have seated themselves on the public lands without authority since the passage of the last preemption law, and now ask the enactment of another to enable them to retain the lands occupied upon payment of the minimum Government price. They ask that which has been repeatedly granted before. If the future may be judged of by the past, little harm can be done to the interests of the Treasury by yielding to their request. Upon a critical examination it is found that the lands sold at the public sales since the introduction of cash payments, in 1820, have produced on an average the net revenue of only 6 cents an acre more than the minimum Government price. There is no reason to suppose that future sales will be more productive. The Government, therefore, has no adequate pecuniary interest to induce it to drive these people from the lands they occupy for the purpose of selling them to others. Entertaining these views, I recommend the passage of a preemption law for their benefit in connection with the preparatory steps toward the graduation of the price of the public lands, and further and more effectual provisions to prevent intrusions hereafter. Indulgence to those who have settled on these lands with expectations that past legislation would be made a rule for the future, and at the same time removing the most plausible ground on which intrusions are excused and adopting more efficient means to prevent them hereafter, appears to me the most judicious disposition which can be made of this difficult subject. The limitations and restrictions to guard against abuses in the execution of a preemption law will necessarily attract the careful attention of Congress, but under no circumstances is it considered expedient to authorize floating claims in any shape. They have been heretofore, and doubtless would be hereafter, most prolific sources of fraud and oppression, and instead of operating to confer the favor of the Government on industrious settlers are often used only to minister to a spirit of cupidity at the expense of the most meritorious of that class. The accompanying report of the Secretary of War will bring to your view the state of the Army and all the various subjects confided to the superintendence of that officer. The principal part of the Army has been concentrated in Florida, with a view and in the expectation of bringing the war in that Territory to a speedy close. The necessity of stripping the posts on the maritime and inland frontiers of their entire garrisons for the purpose of assembling in the field an army of less than 4,000 men would seem to indicate the necessity of increasing our regular forces; and the superior efficiency, as well as greatly diminished expense of that description of troops, recommend this measure as one of economy as well as of expediency. I refer to the report for the reasons which have induced the Secretary of War to urge the reorganization and enlargement of the staff of the Army, and of the Ordnance Corps, in which I fully concur. It is not, however, compatible with the interests of the people to maintain in time of peace a regular force adequate to the defense of our extensive frontiers. In periods of danger and alarm we must rely principally upon a well-organized militia, and some general arrangement that will render this description of force more efficient has long been a subject of anxious solicitude. It was recommended to the First Congress by General Washington, and has been since frequently brought to your notice, and recently its importance strongly urged by my immediate predecessor. The provision in the Constitution that renders it necessary to adopt a uniform system of organization for the militia throughout the United States presents an insurmountable obstacle to an efficient arrangement by the classification heretofore proposed, and I invite your attention to the plan which will be submitted by the Secretary of War, for the organization of volunteer corps and the instruction of militia officers, as more simple and practicable, if not equally advantageous, as a general arrangement of the whole militia of the United States. A moderate increase of the corps both of military and topographical engineers has been more than once recommended by my predecessor, and my conviction of the propriety, not to say necessity, of the measure, in order to enable them to perform the various and important duties imposed upon them, induces me to repeat the recommendation. The Military Academy continues to answer all the purposes of its establishment, and not only furnishes well-educated officers to the Army, but serves to diffuse throughout the mass of our citizens individuals possessed of military knowledge and the scientific attainments of civil and military engineering. At present the cadet is bound, with consent of his parents or guardians, to remain in service five years from the period of his enlistment, unless sooner discharged, thus exacting only one year's service in the Army after his education is completed. This does not appear to me sufficient. Government ought to command for a longer period the services of those who are educated at the public expense, and I recommend that the time of enlistment be extended to seven years, and the terms of the engagement strictly enforced. The creation of a national foundry for cannon, to be common to the service of the Army and Navy of the United States, has been heretofore recommended, and appears to be required in order to place our ordnance on an equal footing with that of other countries and to enable that branch of the service to control the prices of those articles and graduate the supplies to the wants of the Government, as well as to regulate their quality and insure their uniformity. The same reasons induce me to recommend the erection of a manufactory of gunpowder, to be under the direction of the Ordnance Office. The establishment of a manufactory of small arms west of the Alleghany Mountains, upon the plan proposed by the Secretary of War, will contribute to extend throughout that country the improvements which exist in establishments of a similar description in the Atlantic States, and tend to a much more economical distribution of the armament required in the western portion of our Union. The system of removing the Indians west of the Mississippi, commenced by Mr. Jefferson in 1804, has been steadily persevered in by every succeeding President, and may be considered the settled policy of the country. Unconnected at first with any well-defined system for their improvement, the inducements held out to the Indians were confined to the greater abundance of game to be found in the West; but when the beneficial effects of their removal were made apparent a more philanthropic and enlightened policy was adopted in purchasing their lands east of the Mississippi. Liberal prices were given and provisions inserted in all the treaties with them for the application of the funds they received in exchange to such purposes as were best calculated to promote their present welfare and advance their future civilization. These measures have been attended thus far with the happiest results. It will be seen by referring to the report of the Commissioner of Indian Affairs that the most sanguine expectations of the friends and promoters of this system have been realized. The Choctaws, Cherokees, and other tribes that first emigrated beyond the Mississippi have for the most part abandoned the hunter state and become cultivators of the soil. The improvement in their condition has been rapid, and it is believed that they are now fitted to enjoy the advantages of a simple form of government, which has been submitted to them and received their sanction; and I can not too strongly urge this subject upon the attention of Congress. Stipulations have been made with all the Indian tribes to remove them beyond the Mississippi, except with the bands of the Wyandots, the Six Nations in New York, the Menomonees, Munsees, and Stockbridges in Wisconsin, and Miamies in Indiana. With all but the Menomonees it is expected that arrangements for their emigration will be completed the present year. The resistance which has been opposed to their removal by some of the tribes even after treaties had been made with them to that effect has arisen from various causes, operating differently on each of them. In most instances they have been instigated to resistance by persons to whom the trade with them and the acquisition of their annuities were important, and in some by the personal influence of interested chiefs. These obstacles must be overcome, for the Government can not relinquish the execution of this policy without sacrificing important interests and abandoning the tribes remaining east of the Mississippi to certain destruction. The decrease in numbers of the tribes within the limits of the States and Territories has been most rapid. If they be removed, they can be protected from those associations and evil practices which exert so pernicious and destructive an influence over their destinies. They can be induced to labor and to acquire property, and its acquisition will inspire them with a feeling of independence. Their minds can be cultivated, and they can be taught the value of salutary and uniform laws and be made sensible of the blessings of free government and capable of enjoying its advantages. In the possession of property, knowledge, and a good government, free to give what direction they please to their labor, and sharers in the legislation by which their persons and the profits of their industry are to be protected and secured, they will have an ever-present conviction ot the importance of union and peace among themselves and of the preservation of amicable relations with us. The interests of the United States would also be greatly promoted by freeing the relations between the General and State Governments from what has proved a most embarrassing incumbrance by a satisfactory adjustment of conflicting titles to lands caused by the occupation of the Indians, and by causing the resources of the whole country to be developed by the power of the State and General Governments and improved by the enterprise of a white population. Intimately connected with this subject is the obligation of the Government to fulfill its treaty stipulations and to protect the Indians thus assembled "at their new residences from all interruptions and disturbances from any other tribes or nations of Indians or from any other person or persons whatsoever," and the equally solemn obligation to guard from Indian hostility its own border settlements, stretching along a line of more than 1,000 miles. To enable the Government to redeem this pledge to the Indians and to afford adequate protection to its own citizens will require the continual presence of a considerable regular force on the frontiers and the establishment of a chain of permanent posts. Examinations of the country are now making, with a view to decide on the most suitable points for the erection of fortresses and other works of defense, the results of which will be presented to you by the Secretary of War at an early day, together with a plan for the effectual protection of the friendly Indians and the permanent defense of the frontier States. By the report of the Secretary of the Navy herewith communicated it appears that unremitted exertions have been made at the different navy-yards to carry into effect all authorized measures for the extension and employment of our naval force. The launching and preparation of the ship of the line Pennsylvania and the complete repairs of the ships of the line Ohio, Delaware, and Columbus may be noticed as forming a respectable addition to this important arm of our national defense. Our commerce and navigation have received increased aid and protection during the present year. Our squadrons in the Pacific and on the Brazilian station have been much increased, and that in the Mediterranean, although small, is adequate to the present wants of our commerce in that sea. Additions have been made to our squadron on the West India station, where the large force under Commodore Dallas has been most actively and efficiently employed in protecting our commerce, in preventing the importation of slaves, and in cooperating with the officers of the Army in carrying on the war in Florida. The satisfactory condition of our naval force abroad leaves at our disposal the means of conveniently providing for a home squadron for the protection of commerce upon our extensive coast. The amount of appropriations required for such a squadron will be found in the general estimates for the naval service for the year 1838. The naval officers engaged upon our coast survey have rendered important service to our navigation. The discovery of a new channel into the harbor of New York, through which our largest ships may pass without danger, must afford important commercial advantages to that harbor and add greatly to its value as a naval station. The accurate survey of Georges Shoals, off the coast of Massachusetts, lately completed, will render comparatively safe a navigation hitherto considered dangerous. Considerable additions have been made to the number of captains, commanders, lieutenants, surgeons, and assistant surgeons in the Navy. These additions were rendered necessary by the increased number of vessels put in commission to answer the exigencies of our growing commerce. Your attention is respectfully invited to the various suggestions of the Secretary for the improvement of the naval service. The report of the Postmaster-General exhibits the progress and condition of the mail service. The operations of the Post-Office Department constitute one of the most active elements of our national prosperity, and it is gratifying to observe with what vigor they are conducted. The mail routes of the United States cover an extent of about 142,877 miles, having been increased about 37,103 miles within the last two years. The annual mail transportation on these routes is about 36,228,962 miles, having been increased about 10,359,476 miles within the same period. The number of post-offices has also been increased from 10,770 to 12,099, very few of which receive the mails less than once a week, and a large portion of them daily. Contractors and postmasters in general are represented as attending to their duties with most commendable zeal and fidelity. The revenue of the Department within the year ending on the 30th of June last was $4,137,056.59, and its liabilities accruing within the same time were $3,380,847.75. The increase of revenue over that of the preceding year was $708,166.41. For many interesting details I refer you to the report of the Postmaster-General, with the accompanying papers, Your particular attention is invited to the necessity of providing a more safe and convenient building for the accommodation of that Department. I lay before Congress copies of reports submitted in pursuance of a call made by me upon the heads of Departments for such suggestions as their experience might enable them to make as to what further legislative provisions may be advantageously adopted to secure the faithful application of public moneys to the objects for which they are appropriated, to prevent their misapplication or embezzlement by those intrusted with the expenditure of them, and generally to increase the security of the Government against losses in their disbursement. It is needless to dilate on the importance of providing such new safeguards as are within the power of legislation to promote these ends, and I have little to add to the recommendations submitted in the accompanying papers. By law the terms of service of our most important collecting and disbursing officers in the civil departments are limited to four years, and when reappointed their bonds are required to be renewed. The safety of the public is much increased by this feature of the law, and there can be no doubt that its application to all officers intrusted with the collection or disbursement of the public money, whatever may be the tenure of their offices, would be equally beneficial. I therefore recommend, in addition to such of the suggestions presented by the heads of Departments as you may think useful, a general provision that all officers of the Army or Navy, or in the civil departments, intrusted with the receipt or payment of public money, and whose term of service is either unlimited or for a longer time than four years, be required to give new bonds, with good and sufficient sureties, at the expiration of every such period. A change in the period of terminating the fiscal year, from the 1st of October to the 1st of April, has been frequently recommended, and appears to be desirable. The distressing casualties in steamboats which have so frequently happened during the year seem to evince the necessity of attempting to prevent them by means of severe provisions connected with their customhouse papers. This subject was submitted to the attention of Congress by the Secretary of the Treasury in his last annual report, and will be again noticed at the present session, with additional details. It will doubtless receive that early and careful consideration which its pressing importance appears to require. Your attention has heretofore been frequently called to the affairs of the District of Columbia, and I should not again ask it did not their entire dependence on Congress give them a constant claim upon. its notice. Separated by the Constitution from the rest of the Union, limited in extent, and aided by no legislature of its own, it would seem to be a spot where a wise and uniform system of local government might have been easily adopted. This District has, however, unfortunately been left to linger behind the rest of the Union. Its codes, civil and criminal, are not only very defective, but full of obsolete or inconvenient provisions. Being formed of portions of two States, discrepancies in the laws prevail in different parts of the territory, small as it is; and although it was selected as the seat of the General Government, the site of its public edifices, the depository of its archives, and the residence of officers intrusted with large amounts of public property and the management of public business, yet it has never been subjected to or received that special and comprehensive legislation which these circumstances peculiarly demand. I am well aware of the various subjects of greater magnitude and immediate interest that press themselves on the consideration of Congress, but I believe there is not one that appeals more directly to its justice than a liberal and even generous attention to the interests of the District of Columbia and a thorough and careful revision of its local government.
We have reason to renew the expression of our devout gratitude to the Giver of All Good for His benign protection. Our country presents on every side the evidences of that continued favor under whose auspices it, has gradually risen from a few feeble and dependent colonies to a prosperous and powerful confederacy. We are blessed with domestic tranquillity and all the elements of national prosperity. The pestilence which, invading for a time some flourishing portions of the Union, interrupted the general prevalence of unusual health has happily been limited in extent and arrested in its fatal career. The industry and prudence of our citizens are gradually relieving them from the pecuniary embarrassments under which portions of them have labored; judicious legislation and the natural and boundless resources of the country have afforded wise end timely aid to private enterprise, and the activity always characteristic of our people has already in a great degree resumed its usual and profitable channels. The condition of our foreign relations has not materially changed since the last annual message of my predecessor. We remain at peace with all nations, and no efforts on my part consistent with the preservation of our rights and the honor of the country shall be spared to maintain a position so consonant to our institutions. We have faithfully sustained the foreign policy with which the United States, under the guidance of their first President, took their stand in the family of nations--that of regulating their intercourse with other powers by the approved principles of private life; asking and according equal rights and equal privileges; rendering and demanding justice in all cases; advancing their own and discussing the pretensions of others with candor, directness, and sincerity; appealing at all times to reason, but never yielding to force nor seeking to acquire anything for themselves by its exercise. A rigid adherence to this policy has left this Government with scarcely a claim upon its justice for injuries arising from acts committed by its authority. The most imposing and perplexing of those of the United States upon foreign governments for aggressions upon our citizens were disposed of by my predecessor. Independently of the benefits conferred upon our citizens by restoring to the mercantile community so many millions of which they had been wrongfully divested, a great service was also rendered to his country by the satisfactory adjustment of so many ancient and irritating subjects of contention; and it reflects no ordinary credit on his successful administration of public affairs that this great object was accomplished without compromising on any occasion either the honor or the peace of the nation. With European powers no new subjects of difficulty have arisen, and those which were under discussion, although not terminated, do not present a more unfavorable aspect for the future preservation of that good understanding which it has ever been our desire to cultivate. Of pending questions the most important is that which exists with the Government of Great Britain in respect to our northeastern boundary. It is with unfeigned regret that the people of the United States must look back upon the abortive efforts made by the Executive, for a period of more than half a century, to determine what no nation should suffer long to remain in dispute--the true line which divides its possessions from those of other powers. The nature of the settlements on the borders of the United States and of the neighboring territory was for a season such that this, perhaps, was not indispensable to a faithful performance of the duties of the Federal Government. Time has, however, changed this state of things, and has brought about a condition of affairs in which the true interests of both countries imperatively require that this question should be put at rest. It is not to be disguised that, with full confidence, often expressed, in the desire of the British Government to terminate it, we are apparently as far from its adjustment as we were at the time of signing the treaty of peace in 1783. The sole result of long-pending negotiations and a perplexing arbitration appears to be a conviction on its part that a conventional line must be adopted, from the impossibility of ascertaining the true one according to the description contained in that treaty. Without coinciding in this opinion, which is not thought to be well rounded, my predecessor gave the strongest proof of the earnest desire of the United States to terminate satisfactorily this dispute by proposing the substitution of a conventional line if the consent of the States interested in the question could be obtained. To this proposition no answer has as yet been received. The attention of the British Government has, however, been urgently invited to the subject, and its reply can not, I am confident, be much longer delayed. The general relations between Great Britain and the United States are of the most friendly character, and I am well satisfied of the sincere disposition of that Government to maintain them upon their present footing. This disposition has also, I am persuaded, become more general with the people of England than at any previous period. It is scarcely necessary to say to you how cordially it is reciprocated by the Government and people of the United States. The conviction, which must be common to all, of the injurious consequences that result from keeping open this irritating question, and the certainty that its final settlement can not be much longer deferred, will, I trust, lead to an early and satisfactory adjustment. At your last session I laid before you the recent communications between the two Governments and between this Government and that of the State of Maine, in whose solicitude concerning a subject in which she has so deep an interest every portion of the Union participates. The feelings produced by a temporary interruption of those harmonious relations between France and the United States which are due as well to the recollections of former times as to a correct appreciation of existing interests have been happily succeeded by a cordial disposition on both sides to cultivate an active friendship in their future intercourse. The opinion, undoubtedly correct, and steadily entertained by us, that the commercial relations at present existing between the two countries are susceptible of great and reciprocally beneficial improvements is obviously gaining ground in France, and I am assured of the disposition of that Government to favor the accomplishment of such an object. This disposition shall be met in a proper spirit on our part. The few and comparatively unimportant questions that remain to be adjusted between us can, I have no doubt, be settled with entire satisfaction and without difficulty. Between Russia and the United States sentiments of good will continue to be mutually cherished. Our minister recently accredited to that Court has been received with a frankness and cordiality and with evidences of respect for his country which leave us no room to doubt the preservation in future of those amicable and liberal relations which have so long and so uninterruptedly existed between the two countries. On the few subjects under discussion between us an early and just decision is confidently anticipated. A correspondence has been opened with the Government of Austria for the establishment of diplomatic relations, in conformity with the wishes of Congress as indicated by an appropriation act of the session of 1837, and arrangements made for the purpose, which will be duly carried into effect. With Austria and Prussia and with the States of the German Empire (now composing with the latter the Commercial League) our political relations are of the most friendly character, whilst our commercial intercourse is gradually extending, with benefit to all who are engaged in it. Civil war yet rages in Spain, producing intense suffering to its own people, and to other nations inconvenience and regret. Our citizens who have claims upon that country will be prejudiced for a time by the condition of its treasury, the inevitable consequence of long-continued and exhausting internal wars. The last installment of the interest of the debt due under the convention with the Queen of Spain has not been paid and similar failures may be expected to happen until a portion of the resources of her Kingdom can be devoted to the extinguishment of its foreign debt. Having received satisfactory evidence that discriminating tonnage duties were charged upon the vessels of the United States in the ports of Portugal, a proclamation was issued on the 11th day of October last, in compliance with the act of May 25, 1832, declaring that fact, and the duties on foreign tonnage which were levied upon Portuguese vessels in the United States previously to the passage of that act are accordingly revived. The act of July 4, 1836, suspending the discriminating duties upon the produce of Portugal imported into this country in Portuguese vessels, was passed, upon the application of that Government through its representative here, under the belief that no similar discrimination existed in Portugal to the prejudice of the United States. I regret to state that such duties are now exacted in that country upon the cargoes of American vessels, and as the act referred to vests no discretion in the Executive, it is for Congress to determine upon the expediency of further legislation on the subject. Against these discriminations affecting the vessels of this country and their cargoes seasonable remonstrance was made, and notice was given to the Portuguese Government that unless they should be discontinued the adoption of countervailing measures on the part of the United States would become necessary; but the reply of that Government, received at the Department of State through our charge d'affaires at Lisbon in the month of September last, afforded no ground to hope for the abandonment of a system so little in harmony with the treatment shown to the vessels of Portugal and their cargoes in the ports of this country and so contrary to the expectations we had a right to entertain. With Holland, Sweden, Denmark, Naples, and Belgium a friendly intercourse has been uninterruptedly maintained. With the Government of the Ottoman Porte and its dependencies on the coast of the Mediterranean peace and good will are carefully cultivated, and have been fostered by such good offices as the relative distance and the condition of those countries would permit. Our commerce with Greece is carried on under the laws of the two Governments, reciprocally beneficial to the navigating interests of both; and I have reason to look forward to the adoption of other measures which will be more extensively and permanently advantageous. Copies of the treaties concluded with the Governments of Siam and Muscat are transmitted for the information of Congress, the ratifications having been received and the treaties made public since the close of the last annual session. Already have we reason to congratulate ourselves on the prospect of considerable commercial benefit; and we have, besides, received from the Sultan of Muscat prompt evidence of his desire to cultivate the most friendly feelings, by liberal acts toward one of our vessels, bestowed in a manner so striking as to require on our part a grateful acknowledgment. Our commerce with the islands of Cuba and Porto Rico still labors under heavy restrictions, the continuance of which is a subject of regret. The only effect of an adherence to them will be to benefit the navigation of other countries at the expense of both the United States and Spain. The independent nations of this continent have ever since they emerged from the colonial state experienced severe trials in their progress to the permanent establishment of liberal political institutions. Their unsettled condition not only interrupts their own advances to prosperity, but has often seriously injured the other powers of the world. The claims of our citizens upon Peru, Chili, Brazil, the Argentine Republic, the Governments formed out of the Republics of Colombia and Mexico, are still pending, although many of them have been presented for examination more than twenty years. New Granada, Venezuela, and Ecuador have recently formed a convention for the purpose of ascertaining and adjusting claims upon the Republic of Colombia, from which it is earnestly hoped our citizens will ere long receive full compensation for the injuries inflicted upon them and for the delay in affording it. An advantageous treaty of commerce has been concluded by the United States with the Peru-Bolivian Confederation, which wants only the ratification of that Government. The progress of a subsequent negotiation for the settlement of claims upon Peru has been unfavorably affected by the war between that power and Chili and the Argentine Republic, and the same event is also likely to produce delays in the settlement of out demands on those powers. The aggravating circumstances connected with our claims upon Mexico and a variety of events touching the honor and integrity of our Government led my predecessor to make at the second session of the last Congress a special recommendation of the course to be pursued to obtain a speedy and final satisfaction of the injuries complained of by this Government and by our citizens. He recommended a final demand of redress, with a contingent authority to the Executive to make reprisals if that demand should be made in vain. From the proceedings of Congress on that recommendation it appeared that the opinion of both branches of the Legislature coincided with that of the Executive, that any mode of redress known to the law of nations might justifiably be used. It was obvious, too, that Congress believed with the President that another demand should be made, in order to give undeniable and satisfactory proof of our desire to avoid extremities with a neighboring power, but that there was an indisposition to vest a discretionary authority in the Executive to take redress should it unfortunately be either denied or unreasonably delayed by the Mexican Government. So soon as the necessary documents were prepared, after entering upon the duties of my office, a special messenger was sent to Mexico to make a final demand of redress, with the documents required by the provisions of our treaty. The demand was made on the 20th of July last. The reply, which bears date the 29th of the same month, contains assurances of a desire on the part of that Government to give a prompt and explicit answer respecting each of the complaints, but that the examination of them would necessarily be deliberate; that in this examination it would be guided by the principles of public law and the obligation of treaties; that nothing should be left undone that might lead to the most speedy and equitable adjustment of our demands, and that its determination in respect to each case should be communicated through the Mexican minister here. Since that time an envoy extraordinary and minister plenipotentiary has been accredited to this Government by that of the Mexican Republic. He brought with him assurances of a sincere desire that the pending differences between the two Governments should be terminated in a manner satisfactory to both. He was received with reciprocal assurances, and a hope was entertained that his mission would lead to a speedy, satisfactory, and final adjustment of all existing subjects of complaint. A sincere believer in the wisdom of the pacific policy by which the United States have always been governed in their intercourse with foreign nations, it was my particular desire, from the proximity of the Mexican Republic and well-known occurrences on our frontier, to be instrumental in obviating all existing difficulties with that Government and in restoring to the intercourse between the two Republics that liberal and friendly character by which they should always be distinguished. I regret, therefore, the more deeply to have found in the recent communications of that Government so little reason to hope that any future efforts of mine for the accomplishment of those desirable objects would be successful. Although the larger number--and many of them aggravated cases of personal wrongs--have been now for years before the Mexican Government, and some of the causes of national complaint, and those of the most offensive character, admitted of immediate, simple, and satisfactory replies, it is only within a few days past that any specific communication in answer to our last demand, made five months ago, has been received from the Mexican minister. By the report of the Secretary of State herewith presented and the accompanying documents it will be seen that for not one of our public complaints has satisfaction been given or offered, that but one of the cases of personal wrong has been favorably considered, and that but four cases of both descriptions out of all those formally presented and earnestly pressed have as yet been decided upon by the Mexican Government. Not perceiving in what manner any of the powers given to the Executive alone could be further usefully employed in bringing this unfortunate controversy to a satisfactory termination, the subject was by my predecessor referred to Congress as one calling for its interposition. In accordance with the clearly understood wishes of the Legislature, another and formal demand for satisfaction has been made upon the Mexican Government, with what success the documents now communicated will show. On a careful and deliberate examination of their contents, and considering the spirit manifested by the Mexican Government, it has become my painful duty to return the subject as it now stands to Congress, to whom it belongs to decide upon the time, the mode, and the measure of redress. Whatever may be your decision, it shall be faithfully executed, confident that it will be characterized by that moderation and justice which will, I trust, under all circumstances govern the councils of our country. The balance in the Treasury on the 1st January, 1837, was $45,968,523. The receipts during the present year from all sources, including the amount of Treasury notes issued, are estimated at $23,499,981, constituting an aggregate of $69,468,504. Of this amount about $35,281,361 will have been expended at the end of the year on appropriations made by Congress, and the residue, amounting to $34,187,143, will be the nominal balance in the Treasury on the 1st of January next; but of that sum only $1,085,498 is considered as immediately available for and applicable to public purposes. Those portions of it which will be for some time unavailable consist chiefly of sums deposited with the States and due from the former deposit banks. The details upon this subject will be found in the annual report of the Secretary of the Treasury. The amount of Treasury notes which it will be necessary to issue during the year on account of those funds being unavailable will, it is supposed, not exceed four and a half millions. It seemed proper, in the condition of the country, to have the estimates on all subjects made as low as practicable without prejudice to any great public measures. The Departments were therefore desired to prepare their estimates accordingly, and I am happy to find that they have been able to graduate them on so economical a scale. In the great and often unexpected fluctuations to which the revenue is subjected it is not possible to compute the receipts beforehand with great certainty, but should they not differ essentially from present anticipations, and should the appropriations not much exceed the estimates, no difficulty seems likely to happen in defraying the current expenses with promptitude and fidelity. Notwithstanding the great embarrassments which have recently occurred in commercial affairs, and the liberal indulgence which in consequence of these embarrassments has been extended to both the merchants and the banks, it is gratifying to be able to anticipate that the Treasury notes which have been issued during the present year will be redeemed and that the resources of the Treasury, without any resort to loans or increased taxes, will prove ample for defraying all charges imposed on it during 1838. The report of the Secretary of the Treasury will afford you a more minute exposition of all matters connected with the administration of the finances during the current year--a period which for the amount of public moneys disbursed and deposited with the States, as well as the financial difficulties encountered and overcome, has few parallels in our history. Your attention was at the last session invited to the necessity of additional legislative provisions in respect to the collection, safe-keeping, and transfer of the public money. No law having been then matured, and not understanding the proceedings of Congress as intended to be final, it becomes my duty again to bring the subject to your notice. On that occasion three modes of performing this branch of the public service were presented for consideration. These were, the creation of a national bank; the revival, with modifications, of the deposit system established by the act of the 23d of June, 1836, permitting the use of the public moneys by the banks; and the discontinuance of the use of such institutions for the purposes referred to, with suitable provisions for their accomplishment through the agency of public officers. Considering the opinions of both Houses of Congress on the first two propositions as expressed in the negative, in which I entirely concur, it is unnecessary for me again in to recur to them. In respect to the last, you have had an opportunity since your adjournment not only to test still further the expediency of the measure by the continued practical operation of such parts of it as are now in force, but also to discover what should ever be sought for and regarded with the utmost deference--the opinions and wishes of the people. The national will is the supreme law of the Republic, and on all subjects within the limits of his constitutional powers should be faithfully obeyed by the public servant. Since the measure in question was submitted to your consideration most of you have enjoyed the advantage of personal communication with your constituents. For one State only has an election been held for the Federal Government; but the early day at which it took place deprived the measure under consideration of much of the support it might otherwise have derived from the result. Local elections for State officers have, however, been held in several of the States, at which the expediency of the plan proposed by the Executive has been. more or less discussed. You will, I am confident, yield to their results the respect due to every expression of the public voice. Desiring, however, to arrive at truth and a just view of the subject in all its bearings, you will at the same time remember that questions of far deeper and more immediate local interest than the fiscal plans of the National Treasury were involved in those elections. Above all, we can not overlook the striking fact that there were at the time in those States more than one hundred and sixty millions of bank capital, of which large portions were subject to actual forfeiture, other large portions upheld only by special and limited legislative indulgences, and most of it, if not all, to a greater or less extent dependent for a continuance of its corporate existence upon the will of the State legislatures to be then chosen. Apprised of this circumstance, you will judge whether it is not most probable that the peculiar condition of that vast interest in these respects, the extent to which it has been spread through all the ramifications of society, its direct connection with the then pending elections, and the feelings it was calculated to infuse into the canvass have exercised a far greater influence over the result than any which could possibly have been produced by a conflict of opinion in respect to a question in the administration of the General Government more remote and far less important in its bearings upon that interest. I have found no reason to change my own opinion as to the expediency of adopting the system proposed, being perfectly satisfied that there will be neither stability nor safety either in the fiscal affairs of the Government or in the pecuniary transactions of individuals and corporations so long as a connection exists between them which, like the past, offers such strong inducements to make them the subjects of political agitation. Indeed, I am more than ever convinced of the dangers to which the free and unbiased exercise of political opinion--the only sure foundation and safeguard of republican government--would be exposed by any further increase of the already overgrown influence of corporate authorities. I can not, therefore, consistently with my views of duty, advise a renewal of a connection which circumstances have dissolved. The discontinuance of the use of State banks for fiscal purposes ought not to be regarded as a measure of hostility toward those institutions. Banks properly established and conducted are highly useful to the business of the country, and will doubtless continue to exist in the States so long as they conform to their laws and are found to be safe and beneficial. How they should be created, what privileges they should enjoy, under what responsibilities they should act, and to what restrictions they should be subject are questions which, as I observed on a previous occasion, belong to the States to decide. Upon their rights or the exercise of them the General Government can have no motive to encroach. Its duty toward them is well performed when it refrains from legislating for their special benefit, because such legislation would violate the spirit of the Constitution and be unjust to other interests; when it takes no steps to impair their usefulness, but so manages its own affairs as to make it the interest of those institutions to strengthen and improve their condition for the security and welfare of the community at large. They have no right to insist on a connection with the Federal Government, nor on the use of the public money for their own benefit. The object of the measure under consideration is to avoid for the future a compulsory connection of this kind. It proposes to place the General Government, in regard to the essential points of the collection, safe-keeping, and transfer of the public money, in a situation which shall relieve it from all dependence on the will of irresponsible individuals or corporations; to withdraw those moneys from the uses of private trade and confide them to agents constitutionally selected and controlled by law; to abstain from improper interference with the industry of the people and withhold inducements to improvident dealings on the part of individuals; to give stability to the concerns of the Treasury; to preserve the measures of the Government from the unavoidable reproaches that flow from such a connection, and the banks themselves from the injurious effects of a supposed participation in the political conflicts of the day, from which they will otherwise find it difficult to escape. These are my views upon this important subject, formed after careful reflection and with no desire but to arrive at what is most likely to promote the public interest. They are now, as they were before, submitted with unfeigned deference for the opinions of others. It was hardly to be hoped that changes so important on a subject so interesting could be made without producing a serious diversity of opinion; but so long as those conflicting views are kept above the influence of individual or local interests, so long as they pursue only the general good and are discussed with moderation and candor, such diversity is a benefit, not an injury. If a majority of Congress see the public welfare in a different light, and more especially if they should be satisfied that the measure proposed would not be acceptable to the people, I shall look to their wisdom to substitute such as may be more conducive to the one and more satisfactory to the other. In any event, they may confidently rely on my hearty cooperation to the fullest extent to which my views of the Constitution and my sense of duty will permit. It is obviously important to this branch of the public service and to the business and quiet of the country that the whole subject should in some way be settled and regulated by law, and, if possible, at your present session. Besides the plans above referred to, I am not aware that any one has been suggested except that of keeping the public money in the State banks in special deposit. This plan is to some extent in accordance with the practice of the Government and with the present arrangements of the Treasury Department, which, except, perhaps, during the operation of the late deposit act, has always been allowed, even during the existence of a national bank, to make a temporary use of the State banks in particular places for the safe-keeping of portions of the revenue. This discretionary power might be continued if Congress deem it desirable, whatever general system be adopted. So long as the connection is voluntary we need, perhaps, anticipate few of those difficulties and little of that dependence on the banks which must attend every such connection when compulsory in its nature and when so arranged as to make the banks a fixed part of the machinery of government. It is undoubtedly in the power of Congress so to regulate and guard it as to prevent the public money from being applied to the use or intermingled with the affairs of individuals. Thus arranged, although it would not give to the Government that entire control over its own funds which I desire to secure to it by the plan I have proposed, it would, it must be admitted, in a great degree accomplish one of the objects which has recommended that plan to my judgment--the separation of the fiscal concerns of the Government from those of individuals or corporations. With these observations I recommend the whole matter to your dispassionate reflection, confidently hoping that some conclusion may be reached by your deliberations which on the one hand shall give safety and stability to the fiscal operations of the Government, and be consistent, on the other, with the genius of our institutions and with the interests and wishes of the great mass of our constituents. It was my hope that nothing would occur to make necessary on this occasion any allusion to the late national bank. There are circumstances, however, connected with the present state of its affairs that bear so directly on the character of the Government and the welfare of the citizen that I should not feel myself excused in neglecting to notice them. The charter which terminated its banking privileges on the 4th of March, 1836, continued its corporate power two years more for the sole purpose of closing its affairs, with authority "to use the corporate name, style, and capacity for the purpose of suits for a final settlement and liquidation of the affairs and acts of the corporation, and for the sale and disposition of their estate--real, personal, and mixed--but for no other purpose or in any other manner whatsoever." Just before the banking privileges ceased, its effects were transferred by the bank to a new State institution, then recently incorporated, in trust, for the discharge of its debts and the settlement of its affairs. With this trustee, by authority of Congress, an adjustment was subsequently made of the large interest which the Government had in the stock of the institution. The manner in which a trust unexpectedly created upon the act granting the charter, and involving such great public interests, has been executed would under any circumstances be a fit subject of inquiry; but much more does it deserve your attention when it embraces the redemption of obligations to which the authority and credit of the United States have given value. The two years allowed are now nearly at an end. It is well understood that the trustee has not redeemed and canceled the outstanding notes of the bank, but has reissued and is actually reissuing, since the 3d of March, 1836, the notes which have been received by it to a vast amount. According to its own official statement, so late as the 1st of October last, nineteen months after- the banking privileges given by the charter had expired, it had under its control uncanceled notes of the late Bank of the United States to the amount of $27,561,866, of which $6,175,861 were in actual circulation, $ 1,468,627 at State bank agencies, and $3,002,390 in transitu, thus showing that upward of ten millions and a half of the notes of the old bank were then still kept outstanding. The impropriety of this procedure is obvious, it being the duty of the trustee to cancel and not to put forth the notes of an institution whose concerns it had undertaken to wind up. If the trustee has a right to reissue these notes now, I can see no reason why it may not continue to do so after the expiration of the two years. As no one could have anticipated a course so extraordinary, the prohibitory clause of the charter above quoted was not accompanied by any penalty or other special provision for enforcing it, nor have we any general law for the prevention of similar acts in future. But it is not in this view of the subject alone that your interposition is required. The United States in settling with the trustee for their stock have withdrawn their funds from their former direct liability to the creditors of the old bank, yet notes of the institution continue to be sent forth in its name, and apparently upon the authority of the United States. The transactions connected with the employment of the bills of the old bank are of vast extent, and should they result unfortunately the interests of individuals may be deeply compromised. Without undertaking to decide how far or in what form, if any, the trustee could be made liable for notes which contain no obligation on its part, or the old bank for such as are put in circulation after the expiration of its charter and without its authority, or the Government for indemnity in case of loss, the question still presses itself upon your consideration whether it is consistent with duty and good faith on the part of the Government to witness this proceeding without a single effort to arrest it. The report of the Commissioner of the General Land Office, which will be laid before you by the Secretary of the Treasury, will show how the affairs of that office have been conducted for the past year. The disposition of the public lands is one of the most important trusts confided to Congress. The practicability of retaining the title and control of such extensive domains in the General Government, and at the same time admitting the Territories embracing them into the Federal Union as coequals with the original States, was seriously doubted by many of our wisest statesmen. All feared that they would become a source of discord, and many carried their apprehensions so far as to see in them the seeds of a future dissolution of the Confederacy. But happily our experience has already been sufficient to quiet in a great degree all such apprehensions. The position at one time assumed, that the admission of new States into the Union on the same footing with the original States was incompatible with a right of soil in the United States and operated as a surrender thereof, notwithstanding the terms of the compacts by which their admission was designed to be regulated, has been wisely abandoned. Whether in the new or the old States, all now agree that the right of soil to the public lands remains in the Federal Government, and that these lands constitute a common property, to be disposed of for the common benefit of all the States, old and new. Acquiescence in this just principle by the people of the new States has naturally promoted a disposition to adopt the most liberal policy in the sale of the public lands. A policy which should be limited to the mere object of selling the lands for the greatest possible sum of money, without regard to higher considerations, finds but few advocates. On the contrary, it is generally conceded that whilst the mode of disposition adopted by the Government should always be a prudent one, yet its leading object ought to be the early settlement and cultivation of the lands sold, and that it should discountenance, if it can not prevent, the accumulation of large tracts in the same hands, which must necessarily retard the growth of the new States or entail upon them a dependent tenantry and its attendant evils. A question embracing such important interests and so well calculated to enlist the feelings of the people in every quarter of the Union has very naturally given rise to numerous plans for the improvement of the existing system. The distinctive features of the policy that has hitherto prevailed are to dispose of the public lands at moderate prices, thus enabling a greater number to enter into competition for their purchase and accomplishing a double object--of promoting their rapid settlement by the purchasers and at the same time increasing the receipts of the Treasury; to sell for cash, thereby preventing the disturbing influence of a large mass of private citizens indebted to the Government which they have a voice in controlling; to bring them into market no faster than good lands are supposed to be wanted for improvement, thereby preventing the accumulation of large tracts in few hands; and to apply the proceeds of the sales to the general purposes of the Government, thus diminishing the amount to be raised from the people of the States by taxation and giving each State its portion of the benefits to be derived from this common fund in a manner the most quiet, and at the same time, perhaps, the most equitable, that can be devised. These provisions, with occasional enactments in behalf of special interests deemed entitled to the favor of the Government, have in their execution produced results as beneficial upon the whole as could reasonably be expected in a matter so vast, so complicated, and so exciting. Upward of 70,000,000, acres have been sold, the greater part of which is believed to have been purchased for actual settlement. The population of the new States and Territories created out of the public domain increased between 1800 and 1830 from less than 60,000 to upward of 2,300,000 souls, constituting at the latter period about one-fifth of the whole people of the United States. The increase since can not be accurately known, but the whole may now be safely estimated at over three and a half millions of souls, composing nine States, the representatives of which constitute above one-third of the Senate and over one-sixth of the House of Representatives of the United States. Thus has been formed a body of free and independent landholders with a rapidity unequaled in the history of mankind; and this great result has been produced without leaving anything for future adjustment between the Government and its citizens. The system under which so much has been accomplished can not be intrinsically bad, and with occasional modifications to correct abuses and adapt it to changes of circumstances may, I think, be safely trusted for the future. There is in the management of such extensive interests much virtue in stability; and although great and obvious improvements should not be declined, changes should never be made without the fullest examination and the clearest demonstration of their practical utility. In the history of the past we have an assurance that this safe rule of action will not be departed from in relation to the public lands; nor is it believed that any necessity exists for interfering with the fundamental principles of the system, or that the public mind, even in the new States, is desirous of any radical alterations. On the contrary, the general disposition appears to be to make such modifications and additions only as will the more effectually carry out the original policy of filling our new States and Territories with an industrious and independent population. The modification most perseveringly pressed upon Congress, which has occupied so much of its time for years past, and will probably do so for a long time to come, if not sooner satisfactorily adjusted, is a reduction in the cost of such portions of the public lands as are ascertained to be unsalable at the rate now established by law, and a graduation according to their relative value of the prices at which they may hereafter be sold. It is worthy of consideration whether justice may not be done to every interest in this matter, and a vexed question set at rest, perhaps forever, by a reasonable compromise of conflicting opinions. Hitherto, after being offered at public sale, lands have been disposed of at one uniform price, whatever difference there might be in their intrinsic value. The leading considerations urged in favor of the measure referred to are that in almost all the land districts, and particularly in those in which the lands have been long surveyed and exposed to sale, there are still remaining numerous and large tracts of every gradation of value, from the Government price downward; that these lands will not be purchased at the Government price so long as better can be conveniently obtained for the same amount; that there are large tracts which even the improvements of the adjacent lands will never raise to that price, and that the present uniform price, combined with their irregular value, operates to prevent a desirable compactness of settlements in the new States and to retard the full development of that wise policy on which our land system is founded, to the injury not only of the several States where the lands lie, but of the United States as a whole. The remedy proposed has been a reduction of the prices according to the length of time the lands have been in market, without reference to any other circumstances. The certainty that the efflux of time would not always in such cases, and perhaps not even generally, furnish a true criterion of value, and the probability that persons residing in the vicinity, as the period for the reduction of prices approached, would postpone purchases they would otherwise make, for the purpose of availing themselves of the lower price, with other considerations of a similar character, have hitherto been successfully urged to defeat the graduation upon time. May not all reasonable desires upon this subject be satisfied without encountering any of these objections? All will concede the abstract principle that the price of the public lands should be proportioned to their relative value, so far as can be accomplished without departing from the rule heretofore observed requiring fixed prices in cases of private entries. The difficulty of the subject seems to lie in the mode of ascertaining what that value is. Would not the safest plan be that which has been adopted by many of the States as the basis of taxation--an actual valuation of lands and classification of them into different rates? Would it not be practicable and expedient to because the relative value of the public lands in the old districts which have been for a certain length of time in market to be appraised and classed into two or more rates below the present minimum price by the officers now employed in this branch of the public service or in any other mode deemed preferable, and to make those prices permanent if upon the coming in of the report they shall prove satisfactory to Congress? Could not all the objects of graduation be accomplished in this way, and the objections which have hitherto been urged against it avoided? It would seem to me that such a step, with a restriction of the sales to limited quantities and for actual improvement, would be free from all just exception. By the full exposition of the value of the lands thus furnished and extensively promulgated persons living at a distance would be informed of their true condition and enabled to enter into competition with those residing in the vicinity; the means of acquiring an independent home would be brought within the reach of many who are unable to purchase at present prices; the population of the new States would be made more compact, and large tracts would be sold which would otherwise remain on hand. Not only would the land be brought within the means of a larger number of purchasers, but many persons possessed of greater means would be content to settle on a larger quantity of the poorer lands rather than emigrate farther west in pursuit of a smaller quantity of better lands. Such a measure would also seem to be more consistent with the policy of the existing laws--that of converting the public domain into cultivated farms owned by their occupants. That policy is not best promoted by sending emigration up the almost interminable streams of the West to occupy in groups the best spots of land, leaving immense wastes behind them and enlarging the frontier beyond the means of the Government to afford it adequate protection, but in encouraging it to occupy with reasonable denseness the territory over which it advances, and find its best defense in the compact front which it presents to the Indian tribes. Many of you will bring to the consideration of the subject the advantages of local knowledge and greater experience, and all will be desirous of making an early and final disposition of every disturbing question in regard to this important interest. If these suggestions shall in any degree contribute to the accomplishment of so important a result, it will afford me sincere satisfaction. In some sections of the country most of the public lands have been sold, and the registers and receivers have very little to do. It is a subject worthy of inquiry whether in many cases two or more districts may not be consolidated and the number of persons employed in this business considerably reduced. Indeed, the time will come when it will be the true policy of the General Government, as to some of the States, to transfer to them for a reasonable equivalent all the refuse and unsold lands and to withdraw the machinery of the Federal land offices altogether. All who take a comprehensive view of our federal system and believe that one of its greatest excellencies consists in interfering as little as possible with the internal concerns of the States look forward with great interest to this result. A modification of the existing laws in respect to the prices of the public lands might also have a favorable influence on the legislation of Congress in relation to another branch of the subject. Many who have not the ability to buy at present prices settle on those lands with the hope of acquiring from their cultivation the means of purchasing under preemption laws from time to time passed by Congress. For this encroachment on the rights of the United States they excuse themselves under the plea of their own necessities; the fact that they dispossess nobody and only enter upon the waste domain: that they give additional value to the public lands in their vicinity, and their intention ultimately to pay the Government price. So much weight has from time to time been attached to these considerations that Congress have passed laws giving actual settlers on the public lands a right of preemption to the tracts occupied by them at the minimum price. These laws have in all instances been retrospective in their operation, but in a few years after their passage crowds of new settlers have been found on the public lands for similar reasons and under like expectations, who have been indulged with the same privilege. This course of legislation tends to impair public respect for the laws of the country. Either the laws to prevent intrusion upon the public lands should be executed, or, if that should be impracticable or inexpedient, they should be modified or repealed. If the public lands are to be considered as open to be occupied by any, they should by law be thrown open to all. That which is intended in all instances to be legalized should at once be made legal, that those who are disposed to conform to the laws may enjoy at least equal privileges with those who are not. But it is not believed to be the disposition of Congress to open the public lands to occupancy without regular entry and payment of the Government price, as such a course must tend to worse evils than the credit system, which it was found necessary to abolish. It would seem, therefore, to be the part of wisdom and sound policy to remove as far as practicable the causes which produce intrusions upon the public lands, and then take efficient steps to prevent them in future. Would any single measure be so effective in removing all plausible grounds for these intrusions as the graduation of price already suggested? A short period of industry and economy in any part of our country would enable the poorest citizen to accumulate the means to buy him a home at the lower prices, and leave him without apology for settling on lands not his own. If he did not under such circumstances, he would enlist no sympathy in his favor, and the laws would be readily executed without doing violence to public opinion. A large portion of our citizens have seated themselves on the public lands without authority since the passage of the last preemption law, and now ask the enactment of another to enable them to retain the lands occupied upon payment of the minimum Government price. They ask that which has been repeatedly granted before. If the future may be judged of by the past, little harm can be done to the interests of the Treasury by yielding to their request. Upon a critical examination it is found that the lands sold at the public sales since the introduction of cash payments, in 1820, have produced on an average the net revenue of only 6 cents an acre more than the minimum Government price. There is no reason to suppose that future sales will be more productive. The Government, therefore, has no adequate pecuniary interest to induce it to drive these people from the lands they occupy for the purpose of selling them to others. Entertaining these views, I recommend the passage of a preemption law for their benefit in connection with the preparatory steps toward the graduation of the price of the public lands, and further and more effectual provisions to prevent intrusions hereafter. Indulgence to those who have settled on these lands with expectations that past legislation would be made a rule for the future, and at the same time removing the most plausible ground on which intrusions are excused and adopting more efficient means to prevent them hereafter, appears to me the most judicious disposition which can be made of this difficult subject. The limitations and restrictions to guard against abuses in the execution of a preemption law will necessarily attract the careful attention of Congress, but under no circumstances is it considered expedient to authorize floating claims in any shape. They have been heretofore, and doubtless would be hereafter, most prolific sources of fraud and oppression, and instead of operating to confer the favor of the Government on industrious settlers are often used only to minister to a spirit of cupidity at the expense of the most meritorious of that class. The accompanying report of the Secretary of War will bring to your view the state of the Army and all the various subjects confided to the superintendence of that officer. The principal part of the Army has been concentrated in Florida, with a view and in the expectation of bringing the war in that Territory to a speedy close. The necessity of stripping the posts on the maritime and inland frontiers of their entire garrisons for the purpose of assembling in the field an army of less than 4,000 men would seem to indicate the necessity of increasing our regular forces; and the superior efficiency, as well as greatly diminished expense of that description of troops, recommend this measure as one of economy as well as of expediency. I refer to the report for the reasons which have induced the Secretary of War to urge the reorganization and enlargement of the staff of the Army, and of the Ordnance Corps, in which I fully concur. It is not, however, compatible with the interests of the people to maintain in time of peace a regular force adequate to the defense of our extensive frontiers. In periods of danger and alarm we must rely principally upon a well-organized militia, and some general arrangement that will render this description of force more efficient has long been a subject of anxious solicitude. It was recommended to the First Congress by General Washington, and has been since frequently brought to your notice, and recently its importance strongly urged by my immediate predecessor. The provision in the Constitution that renders it necessary to adopt a uniform system of organization for the militia throughout the United States presents an insurmountable obstacle to an efficient arrangement by the classification heretofore proposed, and I invite your attention to the plan which will be submitted by the Secretary of War, for the organization of volunteer corps and the instruction of militia officers, as more simple and practicable, if not equally advantageous, as a general arrangement of the whole militia of the United States. A moderate increase of the corps both of military and topographical engineers has been more than once recommended by my predecessor, and my conviction of the propriety, not to say necessity, of the measure, in order to enable them to perform the various and important duties imposed upon them, induces me to repeat the recommendation. The Military Academy continues to answer all the purposes of its establishment, and not only furnishes well-educated officers to the Army, but serves to diffuse throughout the mass of our citizens individuals possessed of military knowledge and the scientific attainments of civil and military engineering. At present the cadet is bound, with consent of his parents or guardians, to remain in service five years from the period of his enlistment, unless sooner discharged, thus exacting only one year's service in the Army after his education is completed. This does not appear to me sufficient. Government ought to command for a longer period the services of those who are educated at the public expense, and I recommend that the time of enlistment be extended to seven years, and the terms of the engagement strictly enforced. The creation of a national foundry for cannon, to be common to the service of the Army and Navy of the United States, has been heretofore recommended, and appears to be required in order to place our ordnance on an equal footing with that of other countries and to enable that branch of the service to control the prices of those articles and graduate the supplies to the wants of the Government, as well as to regulate their quality and insure their uniformity. The same reasons induce me to recommend the erection of a manufactory of gunpowder, to be under the direction of the Ordnance Office. The establishment of a manufactory of small arms west of the Alleghany Mountains, upon the plan proposed by the Secretary of War, will contribute to extend throughout that country the improvements which exist in establishments of a similar description in the Atlantic States, and tend to a much more economical distribution of the armament required in the western portion of our Union. The system of removing the Indians west of the Mississippi, commenced by Mr. Jefferson in 1804, has been steadily persevered in by every succeeding President, and may be considered the settled policy of the country. Unconnected at first with any well-defined system for their improvement, the inducements held out to the Indians were confined to the greater abundance of game to be found in the West; but when the beneficial effects of their removal were made apparent a more philanthropic and enlightened policy was adopted in purchasing their lands east of the Mississippi. Liberal prices were given and provisions inserted in all the treaties with them for the application of the funds they received in exchange to such purposes as were best calculated to promote their present welfare and advance their future civilization. These measures have been attended thus far with the happiest results. It will be seen by referring to the report of the Commissioner of Indian Affairs that the most sanguine expectations of the friends and promoters of this system have been realized. The Choctaws, Cherokees, and other tribes that first emigrated beyond the Mississippi have for the most part abandoned the hunter state and become cultivators of the soil. The improvement in their condition has been rapid, and it is believed that they are now fitted to enjoy the advantages of a simple form of government, which has been submitted to them and received their sanction; and I can not too strongly urge this subject upon the attention of Congress. Stipulations have been made with all the Indian tribes to remove them beyond the Mississippi, except with the bands of the Wyandots, the Six Nations in New York, the Menomonees, Munsees, and Stockbridges in Wisconsin, and Miamies in Indiana. With all but the Menomonees it is expected that arrangements for their emigration will be completed the present year. The resistance which has been opposed to their removal by some of the tribes even after treaties had been made with them to that effect has arisen from various causes, operating differently on each of them. In most instances they have been instigated to resistance by persons to whom the trade with them and the acquisition of their annuities were important, and in some by the personal influence of interested chiefs. These obstacles must be overcome, for the Government can not relinquish the execution of this policy without sacrificing important interests and abandoning the tribes remaining east of the Mississippi to certain destruction. The decrease in numbers of the tribes within the limits of the States and Territories has been most rapid. If they be removed, they can be protected from those associations and evil practices which exert so pernicious and destructive an influence over their destinies. They can be induced to labor and to acquire property, and its acquisition will inspire them with a feeling of independence. Their minds can be cultivated, and they can be taught the value of salutary and uniform laws and be made sensible of the blessings of free government and capable of enjoying its advantages. In the possession of property, knowledge, and a good government, free to give what direction they please to their labor, and sharers in the legislation by which their persons and the profits of their industry are to be protected and secured, they will have an ever-present conviction ot the importance of union and peace among themselves and of the preservation of amicable relations with us. The interests of the United States would also be greatly promoted by freeing the relations between the General and State Governments from what has proved a most embarrassing incumbrance by a satisfactory adjustment of conflicting titles to lands caused by the occupation of the Indians, and by causing the resources of the whole country to be developed by the power of the State and General Governments and improved by the enterprise of a white population. Intimately connected with this subject is the obligation of the Government to fulfill its treaty stipulations and to protect the Indians thus assembled "at their new residences from all interruptions and disturbances from any other tribes or nations of Indians or from any other person or persons whatsoever," and the equally solemn obligation to guard from Indian hostility its own border settlements, stretching along a line of more than 1,000 miles. To enable the Government to redeem this pledge to the Indians and to afford adequate protection to its own citizens will require the continual presence of a considerable regular force on the frontiers and the establishment of a chain of permanent posts. Examinations of the country are now making, with a view to decide on the most suitable points for the erection of fortresses and other works of defense, the results of which will be presented to you by the Secretary of War at an early day, together with a plan for the effectual protection of the friendly Indians and the permanent defense of the frontier States. By the report of the Secretary of the Navy herewith communicated it appears that unremitted exertions have been made at the different navy-yards to carry into effect all authorized measures for the extension and employment of our naval force. The launching and preparation of the ship of the line Pennsylvania and the complete repairs of the ships of the line Ohio, Delaware, and Columbus may be noticed as forming a respectable addition to this important arm of our national defense. Our commerce and navigation have received increased aid and protection during the present year. Our squadrons in the Pacific and on the Brazilian station have been much increased, and that in the Mediterranean, although small, is adequate to the present wants of our commerce in that sea. Additions have been made to our squadron on the West India station, where the large force under Commodore Dallas has been most actively and efficiently employed in protecting our commerce, in preventing the importation of slaves, and in cooperating with the officers of the Army in carrying on the war in Florida. The satisfactory condition of our naval force abroad leaves at our disposal the means of conveniently providing for a home squadron for the protection of commerce upon our extensive coast. The amount of appropriations required for such a squadron will be found in the general estimates for the naval service for the year 1838. The naval officers engaged upon our coast survey have rendered important service to our navigation. The discovery of a new channel into the harbor of New York, through which our largest ships may pass without danger, must afford important commercial advantages to that harbor and add greatly to its value as a naval station. The accurate survey of Georges Shoals, off the coast of Massachusetts, lately completed, will render comparatively safe a navigation hitherto considered dangerous. Considerable additions have been made to the number of captains, commanders, lieutenants, surgeons, and assistant surgeons in the Navy. These additions were rendered necessary by the increased number of vessels put in commission to answer the exigencies of our growing commerce. Your attention is respectfully invited to the various suggestions of the Secretary for the improvement of the naval service. The report of the Postmaster-General exhibits the progress and condition of the mail service. The operations of the Post-Office Department constitute one of the most active elements of our national prosperity, and it is gratifying to observe with what vigor they are conducted. The mail routes of the United States cover an extent of about 142,877 miles, having been increased about 37,103 miles within the last two years. The annual mail transportation on these routes is about 36,228,962 miles, having been increased about 10,359,476 miles within the same period. The number of post-offices has also been increased from 10,770 to 12,099, very few of which receive the mails less than once a week, and a large portion of them daily. Contractors and postmasters in general are represented as attending to their duties with most commendable zeal and fidelity. The revenue of the Department within the year ending on the 30th of June last was $4,137,056.59, and its liabilities accruing within the same time were $3,380,847.75. The increase of revenue over that of the preceding year was $708,166.41. For many interesting details I refer you to the report of the Postmaster-General, with the accompanying papers, Your particular attention is invited to the necessity of providing a more safe and convenient building for the accommodation of that Department. I lay before Congress copies of reports submitted in pursuance of a call made by me upon the heads of Departments for such suggestions as their experience might enable them to make as to what further legislative provisions may be advantageously adopted to secure the faithful application of public moneys to the objects for which they are appropriated, to prevent their misapplication or embezzlement by those intrusted with the expenditure of them, and generally to increase the security of the Government against losses in their disbursement. It is needless to dilate on the importance of providing such new safeguards as are within the power of legislation to promote these ends, and I have little to add to the recommendations submitted in the accompanying papers. By law the terms of service of our most important collecting and disbursing officers in the civil departments are limited to four years, and when reappointed their bonds are required to be renewed. The safety of the public is much increased by this feature of the law, and there can be no doubt that its application to all officers intrusted with the collection or disbursement of the public money, whatever may be the tenure of their offices, would be equally beneficial. I therefore recommend, in addition to such of the suggestions presented by the heads of Departments as you may think useful, a general provision that all officers of the Army or Navy, or in the civil departments, intrusted with the receipt or payment of public money, and whose term of service is either unlimited or for a longer time than four years, be required to give new bonds, with good and sufficient sureties, at the expiration of every such period. A change in the period of terminating the fiscal year, from the 1st of October to the 1st of April, has been frequently recommended, and appears to be desirable. The distressing casualties in steamboats which have so frequently happened during the year seem to evince the necessity of attempting to prevent them by means of severe provisions connected with their customhouse papers. This subject was submitted to the attention of Congress by the Secretary of the Treasury in his last annual report, and will be again noticed at the present session, with additional details. It will doubtless receive that early and careful consideration which its pressing importance appears to require. Your attention has heretofore been frequently called to the affairs of the District of Columbia, and I should not again ask it did not their entire dependence on Congress give them a constant claim upon. its notice. Separated by the Constitution from the rest of the Union, limited in extent, and aided by no legislature of its own, it would seem to be a spot where a wise and uniform system of local government might have been easily adopted. This District has, however, unfortunately been left to linger behind the rest of the Union. Its codes, civil and criminal, are not only very defective, but full of obsolete or inconvenient provisions. Being formed of portions of two States, discrepancies in the laws prevail in different parts of the territory, small as it is; and although it was selected as the seat of the General Government, the site of its public edifices, the depository of its archives, and the residence of officers intrusted with large amounts of public property and the management of public business, yet it has never been subjected to or received that special and comprehensive legislation which these circumstances peculiarly demand. I am well aware of the various subjects of greater magnitude and immediate interest that press themselves on the consideration of Congress, but I believe there is not one that appeals more directly to its justice than a liberal and even generous attention to the interests of the District of Columbia and a thorough and careful revision of its local government.
we have reason to renew the expression of our devout gratitude to the giver of all good for his benign protection our country presents on every side the evidences of that continued favor under whose auspices it has gradually risen from a few feeble and dependent colonies to a prosperous and powerful confederacy we are blessed with domestic tranquillity and all the elements of national prosperity the pestilence which invading for a time some flourishing portions of the union interrupted the general prevalence of unusual health has happily been limited in extent and arrested in its fatal career the industry and prudence of our citizens are gradually relieving them from the pecuniary embarrassments under which portions of them have labored judicious legislation and the natural and boundless resources of the country have afforded wise end timely aid to private enterprise and the activity always characteristic of our people has already in a great degree resumed its usual and profitable channels the condition of our foreign relations has not materially changed since the last annual message of my predecessor we remain at peace with all nations and no efforts on my part consistent with the preservation of our rights and the honor of the country shall be spared to maintain a position so consonant to our institutions we have faithfully sustained the foreign policy with which the united states under the guidance of their first president took their stand in the family of nations that of regulating their intercourse with other powers by the approved principles of private life asking and according equal rights and equal privileges rendering and demanding justice in all cases advancing their own and discussing the pretensions of others with candor directness and sincerity appealing at all times to reason but never yielding to force nor seeking to acquire anything for themselves by its exercise a rigid adherence to this policy has left this government with scarcely a claim upon its justice for injuries arising from acts committed by its authority the most imposing and perplexing of those of the united states upon foreign governments for aggressions upon our citizens were disposed of by my predecessor independently of the benefits conferred upon our citizens by restoring to the mercantile community so many millions of which they had been wrongfully divested a great service was also rendered to his country by the satisfactory adjustment of so many ancient and irritating subjects of contention and it reflects no ordinary credit on his successful administration of public affairs that this great object was accomplished without compromising on any occasion either the honor or the peace of the nation with european powers no new subjects of difficulty have arisen and those which were under discussion although not terminated do not present a more unfavorable aspect for the future preservation of that good understanding which it has ever been our desire to cultivate of pending questions the most important is that which exists with the government of great britain in respect to our northeastern boundary it is with unfeigned regret that the people of the united states must look back upon the abortive efforts made by the executive for a period of more than half a century to determine what no nation should suffer long to remain in dispute the true line which divides its possessions from those of other powers the nature of the settlements on the borders of the united states and of the neighboring territory was for a season such that this perhaps was not indispensable to a faithful performance of the duties of the federal government time has however changed this state of things and has brought about a condition of affairs in which the true interests of both countries imperatively require that this question should be put at rest it is not to be disguised that with full confidence often expressed in the desire of the british government to terminate it we are apparently as far from its adjustment as we were at the time of signing the treaty of peace in 1783 the sole result of negotiations and a perplexing arbitration appears to be a conviction on its part that a conventional line must be adopted from the impossibility of ascertaining the true one according to the description contained in that treaty without coinciding in this opinion which is not thought to be well rounded my predecessor gave the strongest proof of the earnest desire of the united states to terminate satisfactorily this dispute by proposing the substitution of a conventional line if the consent of the states interested in the question could be obtained to this proposition no answer has as yet been received the attention of the british government has however been urgently invited to the subject and its reply can not i am confident be much longer delayed the general relations between great britain and the united states are of the most friendly character and i am well satisfied of the sincere disposition of that government to maintain them upon their present footing this disposition has also i am persuaded become more general with the people of england than at any previous period it is scarcely necessary to say to you how cordially it is reciprocated by the government and people of the united states the conviction which must be common to all of the injurious consequences that result from keeping open this irritating question and the certainty that its final settlement can not be much longer deferred will i trust lead to an early and satisfactory adjustment at your last session i laid before you the recent communications between the two governments and between this government and that of the state of maine in whose solicitude concerning a subject in which she has so deep an interest every portion of the union participates the feelings produced by a temporary interruption of those harmonious relations between france and the united states which are due as well to the recollections of former times as to a correct appreciation of existing interests have been happily succeeded by a cordial disposition on both sides to cultivate an active friendship in their future intercourse the opinion undoubtedly correct and steadily entertained by us that the commercial relations at present existing between the two countries are susceptible of great and reciprocally beneficial improvements is obviously gaining ground in france and i am assured of the disposition of that government to favor the accomplishment of such an object this disposition shall be met in a proper spirit on our part the few and comparatively unimportant questions that remain to be adjusted between us can i have no doubt be settled with entire satisfaction and without difficulty between russia and the united states sentiments of good will continue to be mutually cherished our minister recently accredited to that court has been received with a frankness and cordiality and with evidences of respect for his country which leave us no room to doubt the preservation in future of those amicable and liberal relations which have so long and so uninterruptedly existed between the two countries on the few subjects under discussion between us an early and just decision is confidently anticipated a correspondence has been opened with the government of austria for the establishment of diplomatic relations in conformity with the wishes of congress as indicated by an appropriation act of the session of 1837 and arrangements made for the purpose which will be duly carried into effect with austria and prussia and with the states of the german empire now composing with the latter the commercial league our political relations are of the most friendly character whilst our commercial intercourse is gradually extending with benefit to all who are engaged in it civil war yet rages in spain producing intense suffering to its own people and to other nations inconvenience and regret our citizens who have claims upon that country will be prejudiced for a time by the condition of its treasury the inevitable consequence of and exhausting internal wars the last installment of the interest of the debt due under the convention with the queen of spain has not been paid and similar failures may be expected to happen until a portion of the resources of her kingdom can be devoted to the extinguishment of its foreign debt having received satisfactory evidence that discriminating tonnage duties were charged upon the vessels of the united states in the ports of portugal a proclamation was issued on the 11th day of october last in compliance with the act of may 25 1832 declaring that fact and the duties on foreign tonnage which were levied upon portuguese vessels in the united states previously to the passage of that act are accordingly revived the act of july 4 1836 suspending the discriminating duties upon the produce of portugal imported into this country in portuguese vessels was passed upon the application of that government through its representative here under the belief that no similar discrimination existed in portugal to the prejudice of the united states i regret to state that such duties are now exacted in that country upon the cargoes of american vessels and as the act referred to vests no discretion in the executive it is for congress to determine upon the expediency of further legislation on the subject against these discriminations affecting the vessels of this country and their cargoes seasonable remonstrance was made and notice was given to the portuguese government that unless they should be discontinued the adoption of countervailing measures on the part of the united states would become necessary but the reply of that government received at the department of state through our charge at lisbon in the month of september last afforded no ground to hope for the abandonment of a system so little in harmony with the treatment shown to the vessels of portugal and their cargoes in the ports of this country and so contrary to the expectations we had a right to entertain with holland sweden denmark naples and belgium a friendly intercourse has been uninterruptedly maintained with the government of the ottoman porte and its dependencies on the coast of the mediterranean peace and good will are carefully cultivated and have been fostered by such good offices as the relative distance and the condition of those countries would permit our commerce with greece is carried on under the laws of the two governments reciprocally beneficial to the navigating interests of both and i have reason to look forward to the adoption of other measures which will be more extensively and permanently advantageous copies of the treaties concluded with the governments of siam and muscat are transmitted for the information of congress the ratifications having been received and the treaties made public since the close of the last annual session already have we reason to congratulate ourselves on the prospect of considerable commercial benefit and we have besides received from the sultan of muscat prompt evidence of his desire to cultivate the most friendly feelings by liberal acts toward one of our vessels bestowed in a manner so striking as to require on our part a grateful acknowledgment our commerce with the islands of cuba and porto rico still labors under heavy restrictions the continuance of which is a subject of regret the only effect of an adherence to them will be to benefit the navigation of other countries at the expense of both the united states and spain the independent nations of this continent have ever since they emerged from the colonial state experienced severe trials in their progress to the permanent establishment of liberal political institutions their unsettled condition not only interrupts their own advances to prosperity but has often seriously injured the other powers of the world the claims of our citizens upon peru chili brazil the argentine republic the governments formed out of the republics of colombia and mexico are still pending although many of them have been presented for examination more than twenty years new granada venezuela and ecuador have recently formed a convention for the purpose of ascertaining and adjusting claims upon the republic of colombia from which it is earnestly hoped our citizens will ere long receive full compensation for the injuries inflicted upon them and for the delay in affording it an advantageous treaty of commerce has been concluded by the united states with the confederation which wants only the ratification of that government the progress of a subsequent negotiation for the settlement of claims upon peru has been unfavorably affected by the war between that power and chili and the argentine republic and the same event is also likely to produce delays in the settlement of out demands on those powers the aggravating circumstances connected with our claims upon mexico and a variety of events touching the honor and integrity of our government led my predecessor to make at the second session of the last congress a special recommendation of the course to be pursued to obtain a speedy and final satisfaction of the injuries complained of by this government and by our citizens he recommended a final demand of redress with a contingent authority to the executive to make reprisals if that demand should be made in vain from the proceedings of congress on that recommendation it appeared that the opinion of both branches of the legislature coincided with that of the executive that any mode of redress known to the law of nations might justifiably be used it was obvious too that congress believed with the president that another demand should be made in order to give undeniable and satisfactory proof of our desire to avoid extremities with a neighboring power but that there was an indisposition to vest a discretionary authority in the executive to take redress should it unfortunately be either denied or unreasonably delayed by the mexican government so soon as the necessary documents were prepared after entering upon the duties of my office a special messenger was sent to mexico to make a final demand of redress with the documents required by the provisions of our treaty the demand was made on the 20th of july last the reply which bears date the 29th of the same month contains assurances of a desire on the part of that government to give a prompt and explicit answer respecting each of the complaints but that the examination of them would necessarily be deliberate that in this examination it would be guided by the principles of public law and the obligation of treaties that nothing should be left undone that might lead to the most speedy and equitable adjustment of our demands and that its determination in respect to each case should be communicated through the mexican minister here since that time an envoy extraordinary and minister plenipotentiary has been accredited to this government by that of the mexican republic he brought with him assurances of a sincere desire that the pending differences between the two governments should be terminated in a manner satisfactory to both he was received with reciprocal assurances and a hope was entertained that his mission would lead to a speedy satisfactory and final adjustment of all existing subjects of complaint a sincere believer in the wisdom of the pacific policy by which the united states have always been governed in their intercourse with foreign nations it was my particular desire from the proximity of the mexican republic and occurrences on our frontier to be instrumental in obviating all existing difficulties with that government and in restoring to the intercourse between the two republics that liberal and friendly character by which they should always be distinguished i regret therefore the more deeply to have found in the recent communications of that government so little reason to hope that any future efforts of mine for the accomplishment of those desirable objects would be successful although the larger number and many of them aggravated cases of personal wrongs have been now for years before the mexican government and some of the causes of national complaint and those of the most offensive character admitted of immediate simple and satisfactory replies it is only within a few days past that any specific communication in answer to our last demand made five months ago has been received from the mexican minister by the report of the secretary of state herewith presented and the accompanying documents it will be seen that for not one of our public complaints has satisfaction been given or offered that but one of the cases of personal wrong has been favorably considered and that but four cases of both descriptions out of all those formally presented and earnestly pressed have as yet been decided upon by the mexican government not perceiving in what manner any of the powers given to the executive alone could be further usefully employed in bringing this unfortunate controversy to a satisfactory termination the subject was by my predecessor referred to congress as one calling for its interposition in accordance with the clearly understood wishes of the legislature another and formal demand for satisfaction has been made upon the mexican government with what success the documents now communicated will show on a careful and deliberate examination of their contents and considering the spirit manifested by the mexican government it has become my painful duty to return the subject as it now stands to congress to whom it belongs to decide upon the time the mode and the measure of redress whatever may be your decision it shall be faithfully executed confident that it will be characterized by that moderation and justice which will i trust under all circumstances govern the councils of our country the balance in the treasury on the 1st january 1837 was the receipts during the present year from all sources including the amount of treasury notes issued are estimated at constituting an aggregate of of this amount about will have been expended at the end of the year on appropriations made by congress and the residue amounting to will be the nominal balance in the treasury on the 1st of january next but of that sum only is considered as immediately available for and applicable to public purposes those portions of it which will be for some time unavailable consist chiefly of sums deposited with the states and due from the former deposit banks the details upon this subject will be found in the annual report of the secretary of the treasury the amount of treasury notes which it will be necessary to issue during the year on account of those funds being unavailable will it is supposed not exceed four and a half millions it seemed proper in the condition of the country to have the estimates on all subjects made as low as practicable without prejudice to any great public measures the departments were therefore desired to prepare their estimates accordingly and i am happy to find that they have been able to graduate them on so economical a scale in the great and often unexpected fluctuations to which the revenue is subjected it is not possible to compute the receipts beforehand with great certainty but should they not differ essentially from present anticipations and should the appropriations not much exceed the estimates no difficulty seems likely to happen in defraying the current expenses with promptitude and fidelity notwithstanding the great embarrassments which have recently occurred in commercial affairs and the liberal indulgence which in consequence of these embarrassments has been extended to both the merchants and the banks it is gratifying to be able to anticipate that the treasury notes which have been issued during the present year will be redeemed and that the resources of the treasury without any resort to loans or increased taxes will prove ample for defraying all charges imposed on it during 1838 the report of the secretary of the treasury will afford you a more minute exposition of all matters connected with the administration of the finances during the current year a period which for the amount of public moneys disbursed and deposited with the states as well as the financial difficulties encountered and overcome has few parallels in our history your attention was at the last session invited to the necessity of additional legislative provisions in respect to the collection and transfer of the public money no law having been then matured and not understanding the proceedings of congress as intended to be final it becomes my duty again to bring the subject to your notice on that occasion three modes of performing this branch of the public service were presented for consideration these were the creation of a national bank the revival with modifications of the deposit system established by the act of the 23d of june 1836 permitting the use of the public moneys by the banks and the discontinuance of the use of such institutions for the purposes referred to with suitable provisions for their accomplishment through the agency of public officers considering the opinions of both houses of congress on the first two propositions as expressed in the negative in which i entirely concur it is unnecessary for me again in to recur to them in respect to the last you have had an opportunity since your adjournment not only to test still further the expediency of the measure by the continued practical operation of such parts of it as are now in force but also to discover what should ever be sought for and regarded with the utmost deference the opinions and wishes of the people the national will is the supreme law of the republic and on all subjects within the limits of his constitutional powers should be faithfully obeyed by the public servant since the measure in question was submitted to your consideration most of you have enjoyed the advantage of personal communication with your constituents for one state only has an election been held for the federal government but the early day at which it took place deprived the measure under consideration of much of the support it might otherwise have derived from the result local elections for state officers have however been held in several of the states at which the expediency of the plan proposed by the executive has been more or less discussed you will i am confident yield to their results the respect due to every expression of the public voice desiring however to arrive at truth and a just view of the subject in all its bearings you will at the same time remember that questions of far deeper and more immediate local interest than the fiscal plans of the national treasury were involved in those elections above all we can not overlook the striking fact that there were at the time in those states more than one hundred and sixty millions of bank capital of which large portions were subject to actual forfeiture other large portions upheld only by special and limited legislative indulgences and most of it if not all to a greater or less extent dependent for a continuance of its corporate existence upon the will of the state legislatures to be then chosen apprised of this circumstance you will judge whether it is not most probable that the peculiar condition of that vast interest in these respects the extent to which it has been spread through all the ramifications of society its direct connection with the then pending elections and the feelings it was calculated to infuse into the canvass have exercised a far greater influence over the result than any which could possibly have been produced by a conflict of opinion in respect to a question in the administration of the general government more remote and far less important in its bearings upon that interest i have found no reason to change my own opinion as to the expediency of adopting the system proposed being perfectly satisfied that there will be neither stability nor safety either in the fiscal affairs of the government or in the pecuniary transactions of individuals and corporations so long as a connection exists between them which like the past offers such strong inducements to make them the subjects of political agitation indeed i am more than ever convinced of the dangers to which the free and unbiased exercise of political opinion the only sure foundation and safeguard of republican government would be exposed by any further increase of the already overgrown influence of corporate authorities i can not therefore consistently with my views of duty advise a renewal of a connection which circumstances have dissolved the discontinuance of the use of state banks for fiscal purposes ought not to be regarded as a measure of hostility toward those institutions banks properly established and conducted are highly useful to the business of the country and will doubtless continue to exist in the states so long as they conform to their laws and are found to be safe and beneficial how they should be created what privileges they should enjoy under what responsibilities they should act and to what restrictions they should be subject are questions which as i observed on a previous occasion belong to the states to decide upon their rights or the exercise of them the general government can have no motive to encroach its duty toward them is well performed when it refrains from legislating for their special benefit because such legislation would violate the spirit of the constitution and be unjust to other interests when it takes no steps to impair their usefulness but so manages its own affairs as to make it the interest of those institutions to strengthen and improve their condition for the security and welfare of the community at large they have no right to insist on a connection with the federal government nor on the use of the public money for their own benefit the object of the measure under consideration is to avoid for the future a compulsory connection of this kind it proposes to place the general government in regard to the essential points of the collection and transfer of the public money in a situation which shall relieve it from all dependence on the will of irresponsible individuals or corporations to withdraw those moneys from the uses of private trade and confide them to agents constitutionally selected and controlled by law to abstain from improper interference with the industry of the people and withhold inducements to improvident dealings on the part of individuals to give stability to the concerns of the treasury to preserve the measures of the government from the unavoidable reproaches that flow from such a connection and the banks themselves from the injurious effects of a supposed participation in the political conflicts of the day from which they will otherwise find it difficult to escape these are my views upon this important subject formed after careful reflection and with no desire but to arrive at what is most likely to promote the public interest they are now as they were before submitted with unfeigned deference for the opinions of others it was hardly to be hoped that changes so important on a subject so interesting could be made without producing a serious diversity of opinion but so long as those conflicting views are kept above the influence of individual or local interests so long as they pursue only the general good and are discussed with moderation and candor such diversity is a benefit not an injury if a majority of congress see the public welfare in a different light and more especially if they should be satisfied that the measure proposed would not be acceptable to the people i shall look to their wisdom to substitute such as may be more conducive to the one and more satisfactory to the other in any event they may confidently rely on my hearty cooperation to the fullest extent to which my views of the constitution and my sense of duty will permit it is obviously important to this branch of the public service and to the business and quiet of the country that the whole subject should in some way be settled and regulated by law and if possible at your present session besides the plans above referred to i am not aware that any one has been suggested except that of keeping the public money in the state banks in special deposit this plan is to some extent in accordance with the practice of the government and with the present arrangements of the treasury department which except perhaps during the operation of the late deposit act has always been allowed even during the existence of a national bank to make a temporary use of the state banks in particular places for the of portions of the revenue this discretionary power might be continued if congress deem it desirable whatever general system be adopted so long as the connection is voluntary we need perhaps anticipate few of those difficulties and little of that dependence on the banks which must attend every such connection when compulsory in its nature and when so arranged as to make the banks a fixed part of the machinery of government it is undoubtedly in the power of congress so to regulate and guard it as to prevent the public money from being applied to the use or intermingled with the affairs of individuals thus arranged although it would not give to the government that entire control over its own funds which i desire to secure to it by the plan i have proposed it would it must be admitted in a great degree accomplish one of the objects which has recommended that plan to my judgment the separation of the fiscal concerns of the government from those of individuals or corporations with these observations i recommend the whole matter to your dispassionate reflection confidently hoping that some conclusion may be reached by your deliberations which on the one hand shall give safety and stability to the fiscal operations of the government and be consistent on the other with the genius of our institutions and with the interests and wishes of the great mass of our constituents it was my hope that nothing would occur to make necessary on this occasion any allusion to the late national bank there are circumstances however connected with the present state of its affairs that bear so directly on the character of the government and the welfare of the citizen that i should not feel myself excused in neglecting to notice them the charter which terminated its banking privileges on the 4th of march 1836 continued its corporate power two years more for the sole purpose of closing its affairs with authority to use the corporate name style and capacity for the purpose of suits for a final settlement and liquidation of the affairs and acts of the corporation and for the sale and disposition of their estate real personal and mixed but for no other purpose or in any other manner whatsoever just before the banking privileges ceased its effects were transferred by the bank to a new state institution then recently incorporated in trust for the discharge of its debts and the settlement of its affairs with this trustee by authority of congress an adjustment was subsequently made of the large interest which the government had in the stock of the institution the manner in which a trust unexpectedly created upon the act granting the charter and involving such great public interests has been executed would under any circumstances be a fit subject of inquiry but much more does it deserve your attention when it embraces the redemption of obligations to which the authority and credit of the united states have given value the two years allowed are now nearly at an end it is well understood that the trustee has not redeemed and canceled the outstanding notes of the bank but has reissued and is actually reissuing since the 3d of march 1836 the notes which have been received by it to a vast amount according to its own official statement so late as the 1st of october last nineteen months the banking privileges given by the charter had expired it had under its control uncanceled notes of the late bank of the united states to the amount of of which were in actual circulation at state bank agencies and in transitu thus showing that upward of ten millions and a half of the notes of the old bank were then still kept outstanding the impropriety of this procedure is obvious it being the duty of the trustee to cancel and not to put forth the notes of an institution whose concerns it had undertaken to wind up if the trustee has a right to reissue these notes now i can see no reason why it may not continue to do so after the expiration of the two years as no one could have anticipated a course so extraordinary the prohibitory clause of the charter above quoted was not accompanied by any penalty or other special provision for enforcing it nor have we any general law for the prevention of similar acts in future but it is not in this view of the subject alone that your interposition is required the united states in settling with the trustee for their stock have withdrawn their funds from their former direct liability to the creditors of the old bank yet notes of the institution continue to be sent forth in its name and apparently upon the authority of the united states the transactions connected with the employment of the bills of the old bank are of vast extent and should they result unfortunately the interests of individuals may be deeply compromised without undertaking to decide how far or in what form if any the trustee could be made liable for notes which contain no obligation on its part or the old bank for such as are put in circulation after the expiration of its charter and without its authority or the government for indemnity in case of loss the question still presses itself upon your consideration whether it is consistent with duty and good faith on the part of the government to witness this proceeding without a single effort to arrest it the report of the commissioner of the general land office which will be laid before you by the secretary of the treasury will show how the affairs of that office have been conducted for the past year the disposition of the public lands is one of the most important trusts confided to congress the practicability of retaining the title and control of such extensive domains in the general government and at the same time admitting the territories embracing them into the federal union as coequals with the original states was seriously doubted by many of our wisest statesmen all feared that they would become a source of discord and many carried their apprehensions so far as to see in them the seeds of a future dissolution of the confederacy but happily our experience has already been sufficient to quiet in a great degree all such apprehensions the position at one time assumed that the admission of new states into the union on the same footing with the original states was incompatible with a right of soil in the united states and operated as a surrender thereof notwithstanding the terms of the compacts by which their admission was designed to be regulated has been wisely abandoned whether in the new or the old states all now agree that the right of soil to the public lands remains in the federal government and that these lands constitute a common property to be disposed of for the common benefit of all the states old and new acquiescence in this just principle by the people of the new states has naturally promoted a disposition to adopt the most liberal policy in the sale of the public lands a policy which should be limited to the mere object of selling the lands for the greatest possible sum of money without regard to higher considerations finds but few advocates on the contrary it is generally conceded that whilst the mode of disposition adopted by the government should always be a prudent one yet its leading object ought to be the early settlement and cultivation of the lands sold and that it should discountenance if it can not prevent the accumulation of large tracts in the same hands which must necessarily retard the growth of the new states or entail upon them a dependent tenantry and its attendant evils a question embracing such important interests and so well calculated to enlist the feelings of the people in every quarter of the union has very naturally given rise to numerous plans for the improvement of the existing system the distinctive features of the policy that has hitherto prevailed are to dispose of the public lands at moderate prices thus enabling a greater number to enter into competition for their purchase and accomplishing a double object of promoting their rapid settlement by the purchasers and at the same time increasing the receipts of the treasury to sell for cash thereby preventing the disturbing influence of a large mass of private citizens indebted to the government which they have a voice in controlling to bring them into market no faster than good lands are supposed to be wanted for improvement thereby preventing the accumulation of large tracts in few hands and to apply the proceeds of the sales to the general purposes of the government thus diminishing the amount to be raised from the people of the states by taxation and giving each state its portion of the benefits to be derived from this common fund in a manner the most quiet and at the same time perhaps the most equitable that can be devised these provisions with occasional enactments in behalf of special interests deemed entitled to the favor of the government have in their execution produced results as beneficial upon the whole as could reasonably be expected in a matter so vast so complicated and so exciting upward of acres have been sold the greater part of which is believed to have been purchased for actual settlement the population of the new states and territories created out of the public domain increased between 1800 and 1830 from less than to upward of souls constituting at the latter period about of the whole people of the united states the increase since can not be accurately known but the whole may now be safely estimated at over three and a half millions of souls composing nine states the representatives of which constitute above of the senate and over of the house of representatives of the united states thus has been formed a body of free and independent landholders with a rapidity unequaled in the history of mankind and this great result has been produced without leaving anything for future adjustment between the government and its citizens the system under which so much has been accomplished can not be intrinsically bad and with occasional modifications to correct abuses and adapt it to changes of circumstances may i think be safely trusted for the future there is in the management of such extensive interests much virtue in stability and although great and obvious improvements should not be declined changes should never be made without the fullest examination and the clearest demonstration of their practical utility in the history of the past we have an assurance that this safe rule of action will not be departed from in relation to the public lands nor is it believed that any necessity exists for interfering with the fundamental principles of the system or that the public mind even in the new states is desirous of any radical alterations on the contrary the general disposition appears to be to make such modifications and additions only as will the more effectually carry out the original policy of filling our new states and territories with an industrious and independent population the modification most perseveringly pressed upon congress which has occupied so much of its time for years past and will probably do so for a long time to come if not sooner satisfactorily adjusted is a reduction in the cost of such portions of the public lands as are ascertained to be unsalable at the rate now established by law and a graduation according to their relative value of the prices at which they may hereafter be sold it is worthy of consideration whether justice may not be done to every interest in this matter and a vexed question set at rest perhaps forever by a reasonable compromise of conflicting opinions hitherto after being offered at public sale lands have been disposed of at one uniform price whatever difference there might be in their intrinsic value the leading considerations urged in favor of the measure referred to are that in almost all the land districts and particularly in those in which the lands have been long surveyed and exposed to sale there are still remaining numerous and large tracts of every gradation of value from the government price downward that these lands will not be purchased at the government price so long as better can be conveniently obtained for the same amount that there are large tracts which even the improvements of the adjacent lands will never raise to that price and that the present uniform price combined with their irregular value operates to prevent a desirable compactness of settlements in the new states and to retard the full development of that wise policy on which our land system is founded to the injury not only of the several states where the lands lie but of the united states as a whole the remedy proposed has been a reduction of the prices according to the length of time the lands have been in market without reference to any other circumstances the certainty that the efflux of time would not always in such cases and perhaps not even generally furnish a true criterion of value and the probability that persons residing in the vicinity as the period for the reduction of prices approached would postpone purchases they would otherwise make for the purpose of availing themselves of the lower price with other considerations of a similar character have hitherto been successfully urged to defeat the graduation upon time may not all reasonable desires upon this subject be satisfied without encountering any of these objections all will concede the abstract principle that the price of the public lands should be proportioned to their relative value so far as can be accomplished without departing from the rule heretofore observed requiring fixed prices in cases of private entries the difficulty of the subject seems to lie in the mode of ascertaining what that value is would not the safest plan be that which has been adopted by many of the states as the basis of taxation an actual valuation of lands and classification of them into different rates would it not be practicable and expedient to because the relative value of the public lands in the old districts which have been for a certain length of time in market to be appraised and classed into two or more rates below the present minimum price by the officers now employed in this branch of the public service or in any other mode deemed preferable and to make those prices permanent if upon the coming in of the report they shall prove satisfactory to congress could not all the objects of graduation be accomplished in this way and the objections which have hitherto been urged against it avoided it would seem to me that such a step with a restriction of the sales to limited quantities and for actual improvement would be free from all just exception by the full exposition of the value of the lands thus furnished and extensively promulgated persons living at a distance would be informed of their true condition and enabled to enter into competition with those residing in the vicinity the means of acquiring an independent home would be brought within the reach of many who are unable to purchase at present prices the population of the new states would be made more compact and large tracts would be sold which would otherwise remain on hand not only would the land be brought within the means of a larger number of purchasers but many persons possessed of greater means would be content to settle on a larger quantity of the poorer lands rather than emigrate farther west in pursuit of a smaller quantity of better lands such a measure would also seem to be more consistent with the policy of the existing laws that of converting the public domain into cultivated farms owned by their occupants that policy is not best promoted by sending emigration up the almost interminable streams of the west to occupy in groups the best spots of land leaving immense wastes behind them and enlarging the frontier beyond the means of the government to afford it adequate protection but in encouraging it to occupy with reasonable denseness the territory over which it advances and find its best defense in the compact front which it presents to the indian tribes many of you will bring to the consideration of the subject the advantages of local knowledge and greater experience and all will be desirous of making an early and final disposition of every disturbing question in regard to this important interest if these suggestions shall in any degree contribute to the accomplishment of so important a result it will afford me sincere satisfaction in some sections of the country most of the public lands have been sold and the registers and receivers have very little to do it is a subject worthy of inquiry whether in many cases two or more districts may not be consolidated and the number of persons employed in this business considerably reduced indeed the time will come when it will be the true policy of the general government as to some of the states to transfer to them for a reasonable equivalent all the refuse and unsold lands and to withdraw the machinery of the federal land offices altogether all who take a comprehensive view of our federal system and believe that one of its greatest excellencies consists in interfering as little as possible with the internal concerns of the states look forward with great interest to this result a modification of the existing laws in respect to the prices of the public lands might also have a favorable influence on the legislation of congress in relation to another branch of the subject many who have not the ability to buy at present prices settle on those lands with the hope of acquiring from their cultivation the means of purchasing under preemption laws from time to time passed by congress for this encroachment on the rights of the united states they excuse themselves under the plea of their own necessities the fact that they dispossess nobody and only enter upon the waste domain that they give additional value to the public lands in their vicinity and their intention ultimately to pay the government price so much weight has from time to time been attached to these considerations that congress have passed laws giving actual settlers on the public lands a right of preemption to the tracts occupied by them at the minimum price these laws have in all instances been retrospective in their operation but in a few years after their passage crowds of new settlers have been found on the public lands for similar reasons and under like expectations who have been indulged with the same privilege this course of legislation tends to impair public respect for the laws of the country either the laws to prevent intrusion upon the public lands should be executed or if that should be impracticable or inexpedient they should be modified or repealed if the public lands are to be considered as open to be occupied by any they should by law be thrown open to all that which is intended in all instances to be legalized should at once be made legal that those who are disposed to conform to the laws may enjoy at least equal privileges with those who are not but it is not believed to be the disposition of congress to open the public lands to occupancy without regular entry and payment of the government price as such a course must tend to worse evils than the credit system which it was found necessary to abolish it would seem therefore to be the part of wisdom and sound policy to remove as far as practicable the causes which produce intrusions upon the public lands and then take efficient steps to prevent them in future would any single measure be so effective in removing all plausible grounds for these intrusions as the graduation of price already suggested a short period of industry and economy in any part of our country would enable the poorest citizen to accumulate the means to buy him a home at the lower prices and leave him without apology for settling on lands not his own if he did not under such circumstances he would enlist no sympathy in his favor and the laws would be readily executed without doing violence to public opinion a large portion of our citizens have seated themselves on the public lands without authority since the passage of the last preemption law and now ask the enactment of another to enable them to retain the lands occupied upon payment of the minimum government price they ask that which has been repeatedly granted before if the future may be judged of by the past little harm can be done to the interests of the treasury by yielding to their request upon a critical examination it is found that the lands sold at the public sales since the introduction of cash payments in 1820 have produced on an average the net revenue of only 6 cents an acre more than the minimum government price there is no reason to suppose that future sales will be more productive the government therefore has no adequate pecuniary interest to induce it to drive these people from the lands they occupy for the purpose of selling them to others entertaining these views i recommend the passage of a preemption law for their benefit in connection with the preparatory steps toward the graduation of the price of the public lands and further and more effectual provisions to prevent intrusions hereafter indulgence to those who have settled on these lands with expectations that past legislation would be made a rule for the future and at the same time removing the most plausible ground on which intrusions are excused and adopting more efficient means to prevent them hereafter appears to me the most judicious disposition which can be made of this difficult subject the limitations and restrictions to guard against abuses in the execution of a preemption law will necessarily attract the careful attention of congress but under no circumstances is it considered expedient to authorize floating claims in any shape they have been heretofore and doubtless would be hereafter most prolific sources of fraud and oppression and instead of operating to confer the favor of the government on industrious settlers are often used only to minister to a spirit of cupidity at the expense of the most meritorious of that class the accompanying report of the secretary of war will bring to your view the state of the army and all the various subjects confided to the superintendence of that officer the principal part of the army has been concentrated in florida with a view and in the expectation of bringing the war in that territory to a speedy close the necessity of stripping the posts on the maritime and inland frontiers of their entire garrisons for the purpose of assembling in the field an army of less than men would seem to indicate the necessity of increasing our regular forces and the superior efficiency as well as greatly diminished expense of that description of troops recommend this measure as one of economy as well as of expediency i refer to the report for the reasons which have induced the secretary of war to urge the reorganization and enlargement of the staff of the army and of the ordnance corps in which i fully concur it is not however compatible with the interests of the people to maintain in time of peace a regular force adequate to the defense of our extensive frontiers in periods of danger and alarm we must rely principally upon a militia and some general arrangement that will render this description of force more efficient has long been a subject of anxious solicitude it was recommended to the first congress by general washington and has been since frequently brought to your notice and recently its importance strongly urged by my immediate predecessor the provision in the constitution that renders it necessary to adopt a uniform system of organization for the militia throughout the united states presents an insurmountable obstacle to an efficient arrangement by the classification heretofore proposed and i invite your attention to the plan which will be submitted by the secretary of war for the organization of volunteer corps and the instruction of militia officers as more simple and practicable if not equally advantageous as a general arrangement of the whole militia of the united states a moderate increase of the corps both of military and topographical engineers has been more than once recommended by my predecessor and my conviction of the propriety not to say necessity of the measure in order to enable them to perform the various and important duties imposed upon them induces me to repeat the recommendation the military academy continues to answer all the purposes of its establishment and not only furnishes officers to the army but serves to diffuse throughout the mass of our citizens individuals possessed of military knowledge and the scientific attainments of civil and military engineering at present the cadet is bound with consent of his parents or guardians to remain in service five years from the period of his enlistment unless sooner discharged thus exacting only one year service in the army after his education is completed this does not appear to me sufficient government ought to command for a longer period the services of those who are educated at the public expense and i recommend that the time of enlistment be extended to seven years and the terms of the engagement strictly enforced the creation of a national foundry for cannon to be common to the service of the army and navy of the united states has been heretofore recommended and appears to be required in order to place our ordnance on an equal footing with that of other countries and to enable that branch of the service to control the prices of those articles and graduate the supplies to the wants of the government as well as to regulate their quality and insure their uniformity the same reasons induce me to recommend the erection of a manufactory of gunpowder to be under the direction of the ordnance office the establishment of a manufactory of small arms west of the alleghany mountains upon the plan proposed by the secretary of war will contribute to extend throughout that country the improvements which exist in establishments of a similar description in the atlantic states and tend to a much more economical distribution of the armament required in the western portion of our union the system of removing the indians west of the mississippi commenced by jefferson in 1804 has been steadily persevered in by every succeeding president and may be considered the settled policy of the country unconnected at first with any system for their improvement the inducements held out to the indians were confined to the greater abundance of game to be found in the west but when the beneficial effects of their removal were made apparent a more philanthropic and enlightened policy was adopted in purchasing their lands east of the mississippi liberal prices were given and provisions inserted in all the treaties with them for the application of the funds they received in exchange to such purposes as were best calculated to promote their present welfare and advance their future civilization these measures have been attended thus far with the happiest results it will be seen by referring to the report of the commissioner of indian affairs that the most sanguine expectations of the friends and promoters of this system have been realized the choctaws cherokees and other tribes that first emigrated beyond the mississippi have for the most part abandoned the hunter state and become cultivators of the soil the improvement in their condition has been rapid and it is believed that they are now fitted to enjoy the advantages of a simple form of government which has been submitted to them and received their sanction and i can not too strongly urge this subject upon the attention of congress stipulations have been made with all the indian tribes to remove them beyond the mississippi except with the bands of the wyandots the six nations in new york the menomonees munsees and stockbridges in wisconsin and miamies in indiana with all but the menomonees it is expected that arrangements for their emigration will be completed the present year the resistance which has been opposed to their removal by some of the tribes even after treaties had been made with them to that effect has arisen from various causes operating differently on each of them in most instances they have been instigated to resistance by persons to whom the trade with them and the acquisition of their annuities were important and in some by the personal influence of interested chiefs these obstacles must be overcome for the government can not relinquish the execution of this policy without sacrificing important interests and abandoning the tribes remaining east of the mississippi to certain destruction the decrease in numbers of the tribes within the limits of the states and territories has been most rapid if they be removed they can be protected from those associations and evil practices which exert so pernicious and destructive an influence over their destinies they can be induced to labor and to acquire property and its acquisition will inspire them with a feeling of independence their minds can be cultivated and they can be taught the value of salutary and uniform laws and be made sensible of the blessings of free government and capable of enjoying its advantages in the possession of property knowledge and a good government free to give what direction they please to their labor and sharers in the legislation by which their persons and the profits of their industry are to be protected and secured they will have an conviction ot the importance of union and peace among themselves and of the preservation of amicable relations with us the interests of the united states would also be greatly promoted by freeing the relations between the general and state governments from what has proved a most embarrassing incumbrance by a satisfactory adjustment of conflicting titles to lands caused by the occupation of the indians and by causing the resources of the whole country to be developed by the power of the state and general governments and improved by the enterprise of a white population intimately connected with this subject is the obligation of the government to fulfill its treaty stipulations and to protect the indians thus assembled at their new residences from all interruptions and disturbances from any other tribes or nations of indians or from any other person or persons whatsoever and the equally solemn obligation to guard from indian hostility its own border settlements stretching along a line of more than miles to enable the government to redeem this pledge to the indians and to afford adequate protection to its own citizens will require the continual presence of a considerable regular force on the frontiers and the establishment of a chain of permanent posts examinations of the country are now making with a view to decide on the most suitable points for the erection of fortresses and other works of defense the results of which will be presented to you by the secretary of war at an early day together with a plan for the effectual protection of the friendly indians and the permanent defense of the frontier states by the report of the secretary of the navy herewith communicated it appears that unremitted exertions have been made at the different to carry into effect all authorized measures for the extension and employment of our naval force the launching and preparation of the ship of the line pennsylvania and the complete repairs of the ships of the line ohio delaware and columbus may be noticed as forming a respectable addition to this important arm of our national defense our commerce and navigation have received increased aid and protection during the present year our squadrons in the pacific and on the brazilian station have been much increased and that in the mediterranean although small is adequate to the present wants of our commerce in that sea additions have been made to our squadron on the west india station where the large force under commodore dallas has been most actively and efficiently employed in protecting our commerce in preventing the importation of slaves and in cooperating with the officers of the army in carrying on the war in florida the satisfactory condition of our naval force abroad leaves at our disposal the means of conveniently providing for a home squadron for the protection of commerce upon our extensive coast the amount of appropriations required for such a squadron will be found in the general estimates for the naval service for the year 1838 the naval officers engaged upon our coast survey have rendered important service to our navigation the discovery of a new channel into the harbor of new york through which our largest ships may pass without danger must afford important commercial advantages to that harbor and add greatly to its value as a naval station the accurate survey of georges shoals off the coast of massachusetts lately completed will render comparatively safe a navigation hitherto considered dangerous considerable additions have been made to the number of captains commanders lieutenants surgeons and assistant surgeons in the navy these additions were rendered necessary by the increased number of vessels put in commission to answer the exigencies of our growing commerce your attention is respectfully invited to the various suggestions of the secretary for the improvement of the naval service the report of the exhibits the progress and condition of the mail service the operations of the department constitute one of the most active elements of our national prosperity and it is gratifying to observe with what vigor they are conducted the mail routes of the united states cover an extent of about miles having been increased about miles within the last two years the annual mail transportation on these routes is about miles having been increased about miles within the same period the number of has also been increased from to very few of which receive the mails less than once a week and a large portion of them daily contractors and postmasters in general are represented as attending to their duties with most commendable zeal and fidelity the revenue of the department within the year ending on the 30th of june last was and its liabilities accruing within the same time were the increase of revenue over that of the preceding year was for many interesting details i refer you to the report of the with the accompanying papers your particular attention is invited to the necessity of providing a more safe and convenient building for the accommodation of that department i lay before congress copies of reports submitted in pursuance of a call made by me upon the heads of departments for such suggestions as their experience might enable them to make as to what further legislative provisions may be advantageously adopted to secure the faithful application of public moneys to the objects for which they are appropriated to prevent their misapplication or embezzlement by those intrusted with the expenditure of them and generally to increase the security of the government against losses in their disbursement it is needless to dilate on the importance of providing such new safeguards as are within the power of legislation to promote these ends and i have little to add to the recommendations submitted in the accompanying papers by law the terms of service of our most important collecting and disbursing officers in the civil departments are limited to four years and when reappointed their bonds are required to be renewed the safety of the public is much increased by this feature of the law and there can be no doubt that its application to all officers intrusted with the collection or disbursement of the public money whatever may be the tenure of their offices would be equally beneficial i therefore recommend in addition to such of the suggestions presented by the heads of departments as you may think useful a general provision that all officers of the army or navy or in the civil departments intrusted with the receipt or payment of public money and whose term of service is either unlimited or for a longer time than four years be required to give new bonds with good and sufficient sureties at the expiration of every such period a change in the period of terminating the fiscal year from the 1st of october to the 1st of april has been frequently recommended and appears to be desirable the distressing casualties in steamboats which have so frequently happened during the year seem to evince the necessity of attempting to prevent them by means of severe provisions connected with their customhouse papers this subject was submitted to the attention of congress by the secretary of the treasury in his last annual report and will be again noticed at the present session with additional details it will doubtless receive that early and careful consideration which its pressing importance appears to require your attention has heretofore been frequently called to the affairs of the district of columbia and i should not again ask it did not their entire dependence on congress give them a constant claim upon its notice separated by the constitution from the rest of the union limited in extent and aided by no legislature of its own it would seem to be a spot where a wise and uniform system of local government might have been easily adopted this district has however unfortunately been left to linger behind the rest of the union its codes civil and criminal are not only very defective but full of obsolete or inconvenient provisions being formed of portions of two states discrepancies in the laws prevail in different parts of the territory small as it is and although it was selected as the seat of the general government the site of its public edifices the depository of its archives and the residence of officers intrusted with large amounts of public property and the management of public business yet it has never been subjected to or received that special and comprehensive legislation which these circumstances peculiarly demand i am well aware of the various subjects of greater magnitude and immediate interest that press themselves on the consideration of congress but i believe there is not one that appeals more directly to its justice than a liberal and even generous attention to the interests of the district of columbia and a thorough and careful revision of its local government
reason renew expression devout gratitude giver good benign protection country presents every side evidences continued favor whose auspices gradually risen feeble dependent colonies prosperous powerful confederacy blessed domestic tranquillity elements national prosperity pestilence invading time flourishing portions union interrupted general prevalence unusual health happily limited extent arrested fatal career industry prudence citizens gradually relieving pecuniary embarrassments portions labored judicious legislation natural boundless resources country afforded wise end timely aid private enterprise activity always characteristic people already great degree resumed usual profitable channels condition foreign relations materially changed since last annual message predecessor remain peace nations efforts part consistent preservation rights honor country shall spared maintain position consonant institutions faithfully sustained foreign policy united states guidance first president took stand family nations regulating intercourse powers approved principles private life asking according equal rights equal privileges rendering demanding justice cases advancing discussing pretensions others candor directness sincerity appealing times reason never yielding force seeking acquire anything exercise rigid adherence policy left government scarcely claim upon justice injuries arising acts committed authority imposing perplexing united states upon foreign governments aggressions upon citizens disposed predecessor independently benefits conferred upon citizens restoring mercantile community many millions wrongfully divested great service also rendered country satisfactory adjustment many ancient irritating subjects contention reflects ordinary credit successful administration public affairs great object accomplished without compromising occasion either honor peace nation european powers new subjects difficulty arisen discussion although terminated present unfavorable aspect future preservation good understanding ever desire cultivate pending questions important exists government great britain respect northeastern boundary unfeigned regret people united states must look back upon abortive efforts made executive period half century determine nation suffer long remain dispute true line divides possessions powers nature settlements borders united states neighboring territory season perhaps indispensable faithful performance duties federal government time however changed state things brought condition affairs true interests countries imperatively require question put rest disguised full confidence often expressed desire british government terminate apparently far adjustment time signing treaty peace 1783 sole result negotiations perplexing arbitration appears conviction part conventional line must adopted impossibility ascertaining true one according description contained treaty without coinciding opinion thought well rounded predecessor gave strongest proof earnest desire united states terminate satisfactorily dispute proposing substitution conventional line consent states interested question could obtained proposition answer yet received attention british government however urgently invited subject reply confident much longer delayed general relations great britain united states friendly character well satisfied sincere disposition government maintain upon present footing disposition also persuaded become general people england previous period scarcely necessary say cordially reciprocated government people united states conviction must common injurious consequences result keeping open irritating question certainty final settlement much longer deferred trust lead early satisfactory adjustment last session laid recent communications two governments government state maine whose solicitude concerning subject deep interest every portion union participates feelings produced temporary interruption harmonious relations france united states due well recollections former times correct appreciation existing interests happily succeeded cordial disposition sides cultivate active friendship future intercourse opinion undoubtedly correct steadily entertained us commercial relations present existing two countries susceptible great reciprocally beneficial improvements obviously gaining ground france assured disposition government favor accomplishment object disposition shall met proper spirit part comparatively unimportant questions remain adjusted us doubt settled entire satisfaction without difficulty russia united states sentiments good continue mutually cherished minister recently accredited court received frankness cordiality evidences respect country leave us room doubt preservation future amicable liberal relations long uninterruptedly existed two countries subjects discussion us early decision confidently anticipated correspondence opened government austria establishment diplomatic relations conformity wishes congress indicated appropriation act session 1837 arrangements made purpose duly carried effect austria prussia states german empire composing latter commercial league political relations friendly character whilst commercial intercourse gradually extending benefit engaged civil war yet rages spain producing intense suffering people nations inconvenience regret citizens claims upon country prejudiced time condition treasury inevitable consequence exhausting internal wars last installment interest debt due convention queen spain paid similar failures may expected happen portion resources kingdom devoted extinguishment foreign debt received satisfactory evidence discriminating tonnage duties charged upon vessels united states ports portugal proclamation issued 11th day october last compliance act may 25 1832 declaring fact duties foreign tonnage levied upon portuguese vessels united states previously passage act accordingly revived act july 4 1836 suspending discriminating duties upon produce portugal imported country portuguese vessels passed upon application government representative belief similar discrimination existed portugal prejudice united states regret state duties exacted country upon cargoes american vessels act referred vests discretion executive congress determine upon expediency legislation subject discriminations affecting vessels country cargoes seasonable remonstrance made notice given portuguese government unless discontinued adoption countervailing measures part united states would become necessary reply government received department state charge lisbon month september last afforded ground hope abandonment system little harmony treatment shown vessels portugal cargoes ports country contrary expectations right entertain holland sweden denmark naples belgium friendly intercourse uninterruptedly maintained government ottoman porte dependencies coast mediterranean peace good carefully cultivated fostered good offices relative distance condition countries would permit commerce greece carried laws two governments reciprocally beneficial navigating interests reason look forward adoption measures extensively permanently advantageous copies treaties concluded governments siam muscat transmitted information congress ratifications received treaties made public since close last annual session already reason congratulate prospect considerable commercial benefit besides received sultan muscat prompt evidence desire cultivate friendly feelings liberal acts toward one vessels bestowed manner striking require part grateful acknowledgment commerce islands cuba porto rico still labors heavy restrictions continuance subject regret effect adherence benefit navigation countries expense united states spain independent nations continent ever since emerged colonial state experienced severe trials progress permanent establishment liberal political institutions unsettled condition interrupts advances prosperity often seriously injured powers world claims citizens upon peru chili brazil argentine republic governments formed republics colombia mexico still pending although many presented examination twenty years new granada venezuela ecuador recently formed convention purpose ascertaining adjusting claims upon republic colombia earnestly hoped citizens ere long receive full compensation injuries inflicted upon delay affording advantageous treaty commerce concluded united states confederation wants ratification government progress subsequent negotiation settlement claims upon peru unfavorably affected war power chili argentine republic event also likely produce delays settlement demands powers aggravating circumstances connected claims upon mexico variety events touching honor integrity government led predecessor make second session last congress special recommendation course pursued obtain speedy final satisfaction injuries complained government citizens recommended final demand redress contingent authority executive make reprisals demand made vain proceedings congress recommendation appeared opinion branches legislature coincided executive mode redress known law nations might justifiably used obvious congress believed president another demand made order give undeniable satisfactory proof desire avoid extremities neighboring power indisposition vest discretionary authority executive take redress unfortunately either denied unreasonably delayed mexican government soon necessary documents prepared entering upon duties office special messenger sent mexico make final demand redress documents required provisions treaty demand made 20th july last reply bears date 29th month contains assurances desire part government give prompt explicit answer respecting complaints examination would necessarily deliberate examination would guided principles public law obligation treaties nothing left undone might lead speedy equitable adjustment demands determination respect case communicated mexican minister since time envoy extraordinary minister plenipotentiary accredited government mexican republic brought assurances sincere desire pending differences two governments terminated manner satisfactory received reciprocal assurances hope entertained mission would lead speedy satisfactory final adjustment existing subjects complaint sincere believer wisdom pacific policy united states always governed intercourse foreign nations particular desire proximity mexican republic occurrences frontier instrumental obviating existing difficulties government restoring intercourse two republics liberal friendly character always distinguished regret therefore deeply found recent communications government little reason hope future efforts mine accomplishment desirable objects would successful although larger number many aggravated cases personal wrongs years mexican government causes national complaint offensive character admitted immediate simple satisfactory replies within days past specific communication answer last demand made five months ago received mexican minister report secretary state herewith presented accompanying documents seen one public complaints satisfaction given offered one cases personal wrong favorably considered four cases descriptions formally presented earnestly pressed yet decided upon mexican government perceiving manner powers given executive alone could usefully employed bringing unfortunate controversy satisfactory termination subject predecessor referred congress one calling interposition accordance clearly understood wishes legislature another formal demand satisfaction made upon mexican government success documents communicated show careful deliberate examination contents considering spirit manifested mexican government become painful duty return subject stands congress belongs decide upon time mode measure redress whatever may decision shall faithfully executed confident characterized moderation justice trust circumstances govern councils country balance treasury 1st january 1837 receipts present year sources including amount treasury notes issued estimated constituting aggregate amount expended end year appropriations made congress residue amounting nominal balance treasury 1st january next sum considered immediately available applicable public purposes portions time unavailable consist chiefly sums deposited states due former deposit banks details upon subject found annual report secretary treasury amount treasury notes necessary issue year account funds unavailable supposed exceed four half millions seemed proper condition country estimates subjects made low practicable without prejudice great public measures departments therefore desired prepare estimates accordingly happy find able graduate economical scale great often unexpected fluctuations revenue subjected possible compute receipts beforehand great certainty differ essentially present anticipations appropriations much exceed estimates difficulty seems likely happen defraying current expenses promptitude fidelity notwithstanding great embarrassments recently occurred commercial affairs liberal indulgence consequence embarrassments extended merchants banks gratifying able anticipate treasury notes issued present year redeemed resources treasury without resort loans increased taxes prove ample defraying charges imposed 1838 report secretary treasury afford minute exposition matters connected administration finances current year period amount public moneys disbursed deposited states well financial difficulties encountered overcome parallels history attention last session invited necessity additional legislative provisions respect collection transfer public money law matured understanding proceedings congress intended final becomes duty bring subject notice occasion three modes performing branch public service presented consideration creation national bank revival modifications deposit system established act 23d june 1836 permitting use public moneys banks discontinuance use institutions purposes referred suitable provisions accomplishment agency public officers considering opinions houses congress first two propositions expressed negative entirely concur unnecessary recur respect last opportunity since adjournment test still expediency measure continued practical operation parts force also discover ever sought regarded utmost deference opinions wishes people national supreme law republic subjects within limits constitutional powers faithfully obeyed public servant since measure question submitted consideration enjoyed advantage personal communication constituents one state election held federal government early day took place deprived measure consideration much support might otherwise derived result local elections state officers however held several states expediency plan proposed executive less discussed confident yield results respect due every expression public voice desiring however arrive truth view subject bearings time remember questions far deeper immediate local interest fiscal plans national treasury involved elections overlook striking fact time states one hundred sixty millions bank capital large portions subject actual forfeiture large portions upheld special limited legislative indulgences greater less extent dependent continuance corporate existence upon state legislatures chosen apprised circumstance judge whether probable peculiar condition vast interest respects extent spread ramifications society direct connection pending elections feelings calculated infuse canvass exercised far greater influence result could possibly produced conflict opinion respect question administration general government remote far less important bearings upon interest found reason change opinion expediency adopting system proposed perfectly satisfied neither stability safety either fiscal affairs government pecuniary transactions individuals corporations long connection exists like past offers strong inducements make subjects political agitation indeed ever convinced dangers free unbiased exercise political opinion sure foundation safeguard republican government would exposed increase already overgrown influence corporate authorities therefore consistently views duty advise renewal connection circumstances dissolved discontinuance use state banks fiscal purposes ought regarded measure hostility toward institutions banks properly established conducted highly useful business country doubtless continue exist states long conform laws found safe beneficial created privileges enjoy responsibilities act restrictions subject questions observed previous occasion belong states decide upon rights exercise general government motive encroach duty toward well performed refrains legislating special benefit legislation would violate spirit constitution unjust interests takes steps impair usefulness manages affairs make interest institutions strengthen improve condition security welfare community large right insist connection federal government use public money benefit object measure consideration avoid future compulsory connection kind proposes place general government regard essential points collection transfer public money situation shall relieve dependence irresponsible individuals corporations withdraw moneys uses private trade confide agents constitutionally selected controlled law abstain improper interference industry people withhold inducements improvident dealings part individuals give stability concerns treasury preserve measures government unavoidable reproaches flow connection banks injurious effects supposed participation political conflicts day otherwise find difficult escape views upon important subject formed careful reflection desire arrive likely promote public interest submitted unfeigned deference opinions others hardly hoped changes important subject interesting could made without producing serious diversity opinion long conflicting views kept influence individual local interests long pursue general good discussed moderation candor diversity benefit injury majority congress see public welfare different light especially satisfied measure proposed would acceptable people shall look wisdom substitute may conducive one satisfactory event may confidently rely hearty cooperation fullest extent views constitution sense duty permit obviously important branch public service business quiet country whole subject way settled regulated law possible present session besides plans referred aware one suggested except keeping public money state banks special deposit plan extent accordance practice government present arrangements treasury department except perhaps operation late deposit act always allowed even existence national bank make temporary use state banks particular places portions revenue discretionary power might continued congress deem desirable whatever general system adopted long connection voluntary need perhaps anticipate difficulties little dependence banks must attend every connection compulsory nature arranged make banks fixed part machinery government undoubtedly power congress regulate guard prevent public money applied use intermingled affairs individuals thus arranged although would give government entire control funds desire secure plan proposed would must admitted great degree accomplish one objects recommended plan judgment separation fiscal concerns government individuals corporations observations recommend whole matter dispassionate reflection confidently hoping conclusion may reached deliberations one hand shall give safety stability fiscal operations government consistent genius institutions interests wishes great mass constituents hope nothing would occur make necessary occasion allusion late national bank circumstances however connected present state affairs bear directly character government welfare citizen feel excused neglecting notice charter terminated banking privileges 4th march 1836 continued corporate power two years sole purpose closing affairs authority use corporate name style capacity purpose suits final settlement liquidation affairs acts corporation sale disposition estate real personal mixed purpose manner whatsoever banking privileges ceased effects transferred bank new state institution recently incorporated trust discharge debts settlement affairs trustee authority congress adjustment subsequently made large interest government stock institution manner trust unexpectedly created upon act granting charter involving great public interests executed would circumstances fit subject inquiry much deserve attention embraces redemption obligations authority credit united states given value two years allowed nearly end well understood trustee redeemed canceled outstanding notes bank reissued actually reissuing since 3d march 1836 notes received vast amount according official statement late 1st october last nineteen months banking privileges given charter expired control uncanceled notes late bank united states amount actual circulation state bank agencies transitu thus showing upward ten millions half notes old bank still kept outstanding impropriety procedure obvious duty trustee cancel put forth notes institution whose concerns undertaken wind trustee right reissue notes see reason may continue expiration two years one could anticipated course extraordinary prohibitory clause charter quoted accompanied penalty special provision enforcing general law prevention similar acts future view subject alone interposition required united states settling trustee stock withdrawn funds former direct liability creditors old bank yet notes institution continue sent forth name apparently upon authority united states transactions connected employment bills old bank vast extent result unfortunately interests individuals may deeply compromised without undertaking decide far form trustee could made liable notes contain obligation part old bank put circulation expiration charter without authority government indemnity case loss question still presses upon consideration whether consistent duty good faith part government witness proceeding without single effort arrest report commissioner general land office laid secretary treasury show affairs office conducted past year disposition public lands one important trusts confided congress practicability retaining title control extensive domains general government time admitting territories embracing federal union coequals original states seriously doubted many wisest statesmen feared would become source discord many carried apprehensions far see seeds future dissolution confederacy happily experience already sufficient quiet great degree apprehensions position one time assumed admission new states union footing original states incompatible right soil united states operated surrender thereof notwithstanding terms compacts admission designed regulated wisely abandoned whether new old states agree right soil public lands remains federal government lands constitute common property disposed common benefit states old new acquiescence principle people new states naturally promoted disposition adopt liberal policy sale public lands policy limited mere object selling lands greatest possible sum money without regard higher considerations finds advocates contrary generally conceded whilst mode disposition adopted government always prudent one yet leading object ought early settlement cultivation lands sold discountenance prevent accumulation large tracts hands must necessarily retard growth new states entail upon dependent tenantry attendant evils question embracing important interests well calculated enlist feelings people every quarter union naturally given rise numerous plans improvement existing system distinctive features policy hitherto prevailed dispose public lands moderate prices thus enabling greater number enter competition purchase accomplishing double object promoting rapid settlement purchasers time increasing receipts treasury sell cash thereby preventing disturbing influence large mass private citizens indebted government voice controlling bring market faster good lands supposed wanted improvement thereby preventing accumulation large tracts hands apply proceeds sales general purposes government thus diminishing amount raised people states taxation giving state portion benefits derived common fund manner quiet time perhaps equitable devised provisions occasional enactments behalf special interests deemed entitled favor government execution produced results beneficial upon whole could reasonably expected matter vast complicated exciting upward acres sold greater part believed purchased actual settlement population new states territories created public domain increased 1800 1830 less upward souls constituting latter period whole people united states increase since accurately known whole may safely estimated three half millions souls composing nine states representatives constitute senate house representatives united states thus formed body free independent landholders rapidity unequaled history mankind great result produced without leaving anything future adjustment government citizens system much accomplished intrinsically bad occasional modifications correct abuses adapt changes circumstances may think safely trusted future management extensive interests much virtue stability although great obvious improvements declined changes never made without fullest examination clearest demonstration practical utility history past assurance safe rule action departed relation public lands believed necessity exists interfering fundamental principles system public mind even new states desirous radical alterations contrary general disposition appears make modifications additions effectually carry original policy filling new states territories industrious independent population modification perseveringly pressed upon congress occupied much time years past probably long time come sooner satisfactorily adjusted reduction cost portions public lands ascertained unsalable rate established law graduation according relative value prices may hereafter sold worthy consideration whether justice may done every interest matter vexed question set rest perhaps forever reasonable compromise conflicting opinions hitherto offered public sale lands disposed one uniform price whatever difference might intrinsic value leading considerations urged favor measure referred almost land districts particularly lands long surveyed exposed sale still remaining numerous large tracts every gradation value government price downward lands purchased government price long better conveniently obtained amount large tracts even improvements adjacent lands never raise price present uniform price combined irregular value operates prevent desirable compactness settlements new states retard full development wise policy land system founded injury several states lands lie united states whole remedy proposed reduction prices according length time lands market without reference circumstances certainty efflux time would always cases perhaps even generally furnish true criterion value probability persons residing vicinity period reduction prices approached would postpone purchases would otherwise make purpose availing lower price considerations similar character hitherto successfully urged defeat graduation upon time may reasonable desires upon subject satisfied without encountering objections concede abstract principle price public lands proportioned relative value far accomplished without departing rule heretofore observed requiring fixed prices cases private entries difficulty subject seems lie mode ascertaining value would safest plan adopted many states basis taxation actual valuation lands classification different rates would practicable expedient relative value public lands old districts certain length time market appraised classed two rates present minimum price officers employed branch public service mode deemed preferable make prices permanent upon coming report shall prove satisfactory congress could objects graduation accomplished way objections hitherto urged avoided would seem step restriction sales limited quantities actual improvement would free exception full exposition value lands thus furnished extensively promulgated persons living distance would informed true condition enabled enter competition residing vicinity means acquiring independent home would brought within reach many unable purchase present prices population new states would made compact large tracts would sold would otherwise remain hand would land brought within means larger number purchasers many persons possessed greater means would content settle larger quantity poorer lands rather emigrate farther west pursuit smaller quantity better lands measure would also seem consistent policy existing laws converting public domain cultivated farms owned occupants policy best promoted sending emigration almost interminable streams west occupy groups best spots land leaving immense wastes behind enlarging frontier beyond means government afford adequate protection encouraging occupy reasonable denseness territory advances find best defense compact front presents indian tribes many bring consideration subject advantages local knowledge greater experience desirous making early final disposition every disturbing question regard important interest suggestions shall degree contribute accomplishment important result afford sincere satisfaction sections country public lands sold registers receivers little subject worthy inquiry whether many cases two districts may consolidated number persons employed business considerably reduced indeed time come true policy general government states transfer reasonable equivalent refuse unsold lands withdraw machinery federal land offices altogether take comprehensive view federal system believe one greatest excellencies consists interfering little possible internal concerns states look forward great interest result modification existing laws respect prices public lands might also favorable influence legislation congress relation another branch subject many ability buy present prices settle lands hope acquiring cultivation means purchasing preemption laws time time passed congress encroachment rights united states excuse plea necessities fact dispossess nobody enter upon waste domain give additional value public lands vicinity intention ultimately pay government price much weight time time attached considerations congress passed laws giving actual settlers public lands right preemption tracts occupied minimum price laws instances retrospective operation years passage crowds new settlers found public lands similar reasons like expectations indulged privilege course legislation tends impair public respect laws country either laws prevent intrusion upon public lands executed impracticable inexpedient modified repealed public lands considered open occupied law thrown open intended instances legalized made legal disposed conform laws may enjoy least equal privileges believed disposition congress open public lands occupancy without regular entry payment government price course must tend worse evils credit system found necessary abolish would seem therefore part wisdom sound policy remove far practicable causes produce intrusions upon public lands take efficient steps prevent future would single measure effective removing plausible grounds intrusions graduation price already suggested short period industry economy part country would enable poorest citizen accumulate means buy home lower prices leave without apology settling lands circumstances would enlist sympathy favor laws would readily executed without violence public opinion large portion citizens seated public lands without authority since passage last preemption law ask enactment another enable retain lands occupied upon payment minimum government price ask repeatedly granted future may judged past little harm done interests treasury yielding request upon critical examination found lands sold public sales since introduction cash payments 1820 produced average net revenue 6 cents acre minimum government price reason suppose future sales productive government therefore adequate pecuniary interest induce drive people lands occupy purpose selling others entertaining views recommend passage preemption law benefit connection preparatory steps toward graduation price public lands effectual provisions prevent intrusions hereafter indulgence settled lands expectations past legislation would made rule future time removing plausible ground intrusions excused adopting efficient means prevent hereafter appears judicious disposition made difficult subject limitations restrictions guard abuses execution preemption law necessarily attract careful attention congress circumstances considered expedient authorize floating claims shape heretofore doubtless would hereafter prolific sources fraud oppression instead operating confer favor government industrious settlers often used minister spirit cupidity expense meritorious class accompanying report secretary war bring view state army various subjects confided superintendence officer principal part army concentrated florida view expectation bringing war territory speedy close necessity stripping posts maritime inland frontiers entire garrisons purpose assembling field army less men would seem indicate necessity increasing regular forces superior efficiency well greatly diminished expense description troops recommend measure one economy well expediency refer report reasons induced secretary war urge reorganization enlargement staff army ordnance corps fully concur however compatible interests people maintain time peace regular force adequate defense extensive frontiers periods danger alarm must rely principally upon militia general arrangement render description force efficient long subject anxious solicitude recommended first congress general washington since frequently brought notice recently importance strongly urged immediate predecessor provision constitution renders necessary adopt uniform system organization militia throughout united states presents insurmountable obstacle efficient arrangement classification heretofore proposed invite attention plan submitted secretary war organization volunteer corps instruction militia officers simple practicable equally advantageous general arrangement whole militia united states moderate increase corps military topographical engineers recommended predecessor conviction propriety say necessity measure order enable perform various important duties imposed upon induces repeat recommendation military academy continues answer purposes establishment furnishes officers army serves diffuse throughout mass citizens individuals possessed military knowledge scientific attainments civil military engineering present cadet bound consent parents guardians remain service five years period enlistment unless sooner discharged thus exacting one year service army education completed appear sufficient government ought command longer period services educated public expense recommend time enlistment extended seven years terms engagement strictly enforced creation national foundry cannon common service army navy united states heretofore recommended appears required order place ordnance equal footing countries enable branch service control prices articles graduate supplies wants government well regulate quality insure uniformity reasons induce recommend erection manufactory gunpowder direction ordnance office establishment manufactory small arms west alleghany mountains upon plan proposed secretary war contribute extend throughout country improvements exist establishments similar description atlantic states tend much economical distribution armament required western portion union system removing indians west mississippi commenced jefferson 1804 steadily persevered every succeeding president may considered settled policy country unconnected first system improvement inducements held indians confined greater abundance game found west beneficial effects removal made apparent philanthropic enlightened policy adopted purchasing lands east mississippi liberal prices given provisions inserted treaties application funds received exchange purposes best calculated promote present welfare advance future civilization measures attended thus far happiest results seen referring report commissioner indian affairs sanguine expectations friends promoters system realized choctaws cherokees tribes first emigrated beyond mississippi part abandoned hunter state become cultivators soil improvement condition rapid believed fitted enjoy advantages simple form government submitted received sanction strongly urge subject upon attention congress stipulations made indian tribes remove beyond mississippi except bands wyandots six nations new york menomonees munsees stockbridges wisconsin miamies indiana menomonees expected arrangements emigration completed present year resistance opposed removal tribes even treaties made effect arisen various causes operating differently instances instigated resistance persons trade acquisition annuities important personal influence interested chiefs obstacles must overcome government relinquish execution policy without sacrificing important interests abandoning tribes remaining east mississippi certain destruction decrease numbers tribes within limits states territories rapid removed protected associations evil practices exert pernicious destructive influence destinies induced labor acquire property acquisition inspire feeling independence minds cultivated taught value salutary uniform laws made sensible blessings free government capable enjoying advantages possession property knowledge good government free give direction please labor sharers legislation persons profits industry protected secured conviction ot importance union peace among preservation amicable relations us interests united states would also greatly promoted freeing relations general state governments proved embarrassing incumbrance satisfactory adjustment conflicting titles lands caused occupation indians causing resources whole country developed power state general governments improved enterprise white population intimately connected subject obligation government fulfill treaty stipulations protect indians thus assembled new residences interruptions disturbances tribes nations indians person persons whatsoever equally solemn obligation guard indian hostility border settlements stretching along line miles enable government redeem pledge indians afford adequate protection citizens require continual presence considerable regular force frontiers establishment chain permanent posts examinations country making view decide suitable points erection fortresses works defense results presented secretary war early day together plan effectual protection friendly indians permanent defense frontier states report secretary navy herewith communicated appears unremitted exertions made different carry effect authorized measures extension employment naval force launching preparation ship line pennsylvania complete repairs ships line ohio delaware columbus may noticed forming respectable addition important arm national defense commerce navigation received increased aid protection present year squadrons pacific brazilian station much increased mediterranean although small adequate present wants commerce sea additions made squadron west india station large force commodore dallas actively efficiently employed protecting commerce preventing importation slaves cooperating officers army carrying war florida satisfactory condition naval force abroad leaves disposal means conveniently providing home squadron protection commerce upon extensive coast amount appropriations required squadron found general estimates naval service year 1838 naval officers engaged upon coast survey rendered important service navigation discovery new channel harbor new york largest ships may pass without danger must afford important commercial advantages harbor add greatly value naval station accurate survey georges shoals coast massachusetts lately completed render comparatively safe navigation hitherto considered dangerous considerable additions made number captains commanders lieutenants surgeons assistant surgeons navy additions rendered necessary increased number vessels put commission answer exigencies growing commerce attention respectfully invited various suggestions secretary improvement naval service report exhibits progress condition mail service operations department constitute one active elements national prosperity gratifying observe vigor conducted mail routes united states cover extent miles increased miles within last two years annual mail transportation routes miles increased miles within period number also increased receive mails less week large portion daily contractors postmasters general represented attending duties commendable zeal fidelity revenue department within year ending 30th june last liabilities accruing within time increase revenue preceding year many interesting details refer report accompanying papers particular attention invited necessity providing safe convenient building accommodation department lay congress copies reports submitted pursuance call made upon heads departments suggestions experience might enable make legislative provisions may advantageously adopted secure faithful application public moneys objects appropriated prevent misapplication embezzlement intrusted expenditure generally increase security government losses disbursement needless dilate importance providing new safeguards within power legislation promote ends little add recommendations submitted accompanying papers law terms service important collecting disbursing officers civil departments limited four years reappointed bonds required renewed safety public much increased feature law doubt application officers intrusted collection disbursement public money whatever may tenure offices would equally beneficial therefore recommend addition suggestions presented heads departments may think useful general provision officers army navy civil departments intrusted receipt payment public money whose term service either unlimited longer time four years required give new bonds good sufficient sureties expiration every period change period terminating fiscal year 1st october 1st april frequently recommended appears desirable distressing casualties steamboats frequently happened year seem evince necessity attempting prevent means severe provisions connected customhouse papers subject submitted attention congress secretary treasury last annual report noticed present session additional details doubtless receive early careful consideration pressing importance appears require attention heretofore frequently called affairs district columbia ask entire dependence congress give constant claim upon notice separated constitution rest union limited extent aided legislature would seem spot wise uniform system local government might easily adopted district however unfortunately left linger behind rest union codes civil criminal defective full obsolete inconvenient provisions formed portions two states discrepancies laws prevail different parts territory small although selected seat general government site public edifices depository archives residence officers intrusted large amounts public property management public business yet never subjected received special comprehensive legislation circumstances peculiarly demand well aware various subjects greater magnitude immediate interest press consideration congress believe one appeals directly justice liberal even generous attention interests district columbia thorough careful revision local government
reason renew expression devout gratitude giver good benign protection country present every side evidence continue favor whose auspex gradually rise feeble dependent colony prosperous powerful confederacy bless domestic tranquillity element national prosperity pestilence invading time flourish portion union interrupt general prevalence unusual health happily limit extent arrest fatal career industry prudence citizen gradually relieve pecuniary embarrassment portion labor judicious legislation natural boundless resource country afford wise end timely aid private enterprise activity always characteristic people already great degree resume usual profitable channel condition foreign relation materially change since last annual message predecessor remain peace nation effort part consistent preservation right honor country shall spar maintain position consonant institution faithfully sustain foreign policy united state guidance first president take stand family nation regulate intercourse power approve principle private life ask accord equal right equal privilege render demand justice case advance discuss pretension others candor directness sincerity appeal time reason never yield force seek acquire anything exercise rigid adherence policy leave government scarcely claim upon justice injury arise act commit authority impose perplex united state upon foreign government aggression upon citizen dispose predecessor independently benefit confer upon citizen restore mercantile community many million wrongfully divest great service also render country satisfactory adjustment many ancient irritate subject contention reflect ordinary credit successful administration public affair great object accomplish without compromise occasion either honor peace nation european power new subject difficulty arisen discussion although terminate present unfavorable aspect future preservation good understanding ever desire cultivate pending question important exists government great britain respect northeastern boundary unfeigned regret people united state must look back upon abortive effort make executive period half century determine nation suffer long remain dispute true line divide possession power nature settlement border united state neighbor territory season perhaps indispensable faithful performance duty federal government time however change state thing bring condition affair true interest country imperatively require question put rest disguise full confidence often express desire british government terminate apparently far adjustment time sign treaty peace 1783 sole result negotiation perplex arbitration appear conviction part conventional line must adopt impossibility ascertain true one accord description contain treaty without coincide opinion think well rounded predecessor give strong proof earnest desire united state terminate satisfactorily dispute propose substitution conventional line consent state interested question could obtain proposition answer yet receive attention british government however urgently invite subject reply confident much longer delayed general relation great britain united state friendly character well satisfy sincere disposition government maintain upon present footing disposition also persuade become general people england previous period scarcely necessary say cordially reciprocated government people united state conviction must common injurious consequence result keep open irritate question certainty final settlement much longer deferred trust lead early satisfactory adjustment last session lay recent communication two government government state maine whose solicitude concern subject deep interest every portion union participate feeling produce temporary interruption harmonious relation france united state due well recollection former time correct appreciation exist interest happily succeed cordial disposition side cultivate active friendship future intercourse opinion undoubtedly correct steadily entertain u commercial relation present exist two country susceptible great reciprocally beneficial improvement obviously gain ground france assure disposition government favor accomplishment object disposition shall meet proper spirit part comparatively unimportant question remain adjusted u doubt settled entire satisfaction without difficulty russia united state sentiment good continue mutually cherish minister recently accredit court receive frankness cordiality evidence respect country leave u room doubt preservation future amicable liberal relation long uninterruptedly exist two country subject discussion u early decision confidently anticipate correspondence open government austria establishment diplomatic relation conformity wish congress indicate appropriation act session 1837 arrangement make purpose duly carry effect austria prussia state german empire compose latter commercial league political relation friendly character whilst commercial intercourse gradually extend benefit engage civil war yet rag spain produce intense suffer people nation inconvenience regret citizens claim upon country prejudice time condition treasury inevitable consequence exhaust internal war last installment interest debt due convention queen spain pay similar failure may expect happen portion resource kingdom devote extinguishment foreign debt receive satisfactory evidence discriminate tonnage duty charge upon vessel unite state port portugal proclamation issue 11th day october last compliance act may 25 1832 declare fact duty foreign tonnage levy upon portuguese vessel unite state previously passage act accordingly revive act july 4 1836 suspend discriminate duty upon produce portugal import country portuguese vessel pass upon application government representative belief similar discrimination exist portugal prejudice united state regret state duty exact country upon cargo american vessel act refer vest discretion executive congress determine upon expediency legislation subject discrimination affect vessel country cargoes seasonable remonstrance make notice give portuguese government unless discontinue adoption countervail measure part unite state would become necessary reply government receive department state charge lisbon month september last afforded ground hope abandonment system little harmony treatment show vessel portugal cargo port country contrary expectation right entertain holland sweden denmark naples belgium friendly intercourse uninterruptedly maintain government ottoman porte dependency coast mediterranean peace good carefully cultivate foster good office relative distance condition country would permit commerce greece carry law two government reciprocally beneficial navigating interest reason look forward adoption measure extensively permanently advantageous copy treaty conclude government siam muscat transmit information congress ratification receive treaty make public since close last annual session already reason congratulate prospect considerable commercial benefit besides received sultan muscat prompt evidence desire cultivate friendly feeling liberal act toward one vessel bestow manner strike require part grateful acknowledgment commerce islands cuba porto rico still labor heavy restriction continuance subject regret effect adherence benefit navigation country expense united state spain independent nation continent ever since emerge colonial state experience severe trial progress permanent establishment liberal political institution unsettled condition interrupt advance prosperity often seriously injured power world claim citizen upon peru chili brazil argentine republic government form republic colombia mexico still pending although many present examination twenty year new granada venezuela ecuador recently form convention purpose ascertain adjust claim upon republic colombia earnestly hop citizen ere long receive full compensation injury inflict upon delay afford advantageous treaty commerce conclude united state confederation want ratification government progress subsequent negotiation settlement claim upon peru unfavorably affect war power chili argentine republic event also likely produce delay settlement demand power aggravate circumstance connect claim upon mexico variety event touch honor integrity government lead predecessor make second session last congress special recommendation course pursue obtain speedy final satisfaction injury complain government citizen recommend final demand redress contingent authority executive make reprisal demand make vain proceeding congress recommendation appear opinion branch legislature coincide executive mode redress know law nation might justifiably use obvious congress believe president another demand make order give undeniable satisfactory proof desire avoid extremities neighbor power indisposition vest discretionary authority executive take redress unfortunately either deny unreasonably delay mexican government soon necessary document prepare enter upon duty office special messenger send mexico make final demand redress document require provision treaty demand make 20th july last reply bear date 29th month contains assurance desire part government give prompt explicit answer respect complaint examination would necessarily deliberate examination would guide principle public law obligation treaty nothing leave undone might lead speedy equitable adjustment demand determination respect case communicate mexican minister since time envoy extraordinary minister plenipotentiary accredit government mexican republic bring assurance sincere desire pending difference two government terminate manner satisfactory receive reciprocal assurance hope entertain mission would lead speedy satisfactory final adjustment exist subject complaint sincere believer wisdom pacific policy united state always govern intercourse foreign nation particular desire proximity mexican republic occurrence frontier instrumental obviate exist difficulty government restore intercourse two republic liberal friendly character always distinguish regret therefore deeply found recent communication government little reason hope future effort mine accomplishment desirable object would successful although large number many aggravated case personal wrong year mexican government cause national complaint offensive character admit immediate simple satisfactory reply within day past specific communication answer last demand make five month ago receive mexican minister report secretary state herewith present accompany document see one public complaints satisfaction give offer one case personal wrong favorably consider four case description formally present earnestly press yet decide upon mexican government perceive manner power give executive alone could usefully employ bring unfortunate controversy satisfactory termination subject predecessor refer congress one call interposition accordance clearly understood wish legislature another formal demand satisfaction make upon mexican government success document communicate show careful deliberate examination content consider spirit manifest mexican government become painful duty return subject stand congress belongs decide upon time mode measure redress whatever may decision shall faithfully execute confident characterize moderation justice trust circumstance govern council country balance treasury 1st january 1837 receipt present year source include amount treasury note issue estimate constitute aggregate amount expend end year appropriation make congress residue amount nominal balance treasury 1st january next sum consider immediately available applicable public purpose portion time unavailable consist chiefly sum deposit state due former deposit bank detail upon subject find annual report secretary treasury amount treasury note necessary issue year account fund unavailable suppose exceed four half million seem proper condition country estimate subject make low practicable without prejudice great public measure department therefore desire prepare estimate accordingly happy find able graduate economical scale great often unexpected fluctuation revenue subject possible compute receipt beforehand great certainty differ essentially present anticipation appropriation much exceed estimate difficulty seem likely happen defray current expense promptitude fidelity notwithstanding great embarrassment recently occur commercial affair liberal indulgence consequence embarrassment extend merchant bank gratify able anticipate treasury note issue present year redeem resource treasury without resort loan increase tax prove ample defraying charge impose 1838 report secretary treasury afford minute exposition matter connect administration finance current year period amount public money disburse deposited state well financial difficulty encounter overcome parallel history attention last session invite necessity additional legislative provision respect collection transfer public money law mature understanding proceeding congress intend final becomes duty bring subject notice occasion three mode perform branch public service present consideration creation national bank revival modification deposit system establish act 23d june 1836 permitting use public money bank discontinuance use institution purpose refer suitable provision accomplishment agency public officer consider opinion house congress first two proposition express negative entirely concur unnecessary recur respect last opportunity since adjournment test still expediency measure continue practical operation part force also discover ever seek regard utmost deference opinion wish people national supreme law republic subject within limit constitutional power faithfully obey public servant since measure question submit consideration enjoy advantage personal communication constituent one state election hold federal government early day take place deprived measure consideration much support might otherwise derive result local election state officer however hold several state expediency plan propose executive less discussed confident yield result respect due every expression public voice desire however arrive truth view subject bearing time remember question far deep immediate local interest fiscal plan national treasury involve election overlook strike fact time state one hundred sixty million bank capital large portion subject actual forfeiture large portion uphold special limited legislative indulgence great less extent dependent continuance corporate existence upon state legislature choose apprise circumstance judge whether probable peculiar condition vast interest respect extent spread ramification society direct connection pending election feeling calculate infuse canvas exercise far great influence result could possibly produce conflict opinion respect question administration general government remote far less important bearing upon interest find reason change opinion expediency adopt system propose perfectly satisfy neither stability safety either fiscal affair government pecuniary transaction individual corporation long connection exists like past offer strong inducement make subject political agitation indeed ever convinced danger free unbiased exercise political opinion sure foundation safeguard republican government would expose increase already overgrown influence corporate authority therefore consistently view duty advise renewal connection circumstance dissolve discontinuance use state bank fiscal purpose ought regard measure hostility toward institution bank properly establish conduct highly useful business country doubtless continue exist state long conform law find safe beneficial create privilege enjoy responsibility act restriction subject question observe previous occasion belong state decide upon right exercise general government motive encroach duty toward well perform refrain legislate special benefit legislation would violate spirit constitution unjust interest take step impair usefulness manages affair make interest institution strengthen improve condition security welfare community large right insist connection federal government use public money benefit object measure consideration avoid future compulsory connection kind propose place general government regard essential point collection transfer public money situation shall relieve dependence irresponsible individual corporation withdraw money use private trade confide agent constitutionally select controlled law abstain improper interference industry people withhold inducement improvident dealing part individual give stability concern treasury preserve measure government unavoidable reproach flow connection bank injurious effect suppose participation political conflict day otherwise find difficult escape view upon important subject form careful reflection desire arrive likely promote public interest submit unfeigned deference opinion others hardly hop change important subject interesting could make without produce serious diversity opinion long conflict view keep influence individual local interest long pursue general good discuss moderation candor diversity benefit injury majority congress see public welfare different light especially satisfied measure propose would acceptable people shall look wisdom substitute may conducive one satisfactory event may confidently rely hearty cooperation full extent view constitution sense duty permit obviously important branch public service business quiet country whole subject way settle regulated law possible present session besides plan refer aware one suggest except keep public money state bank special deposit plan extent accordance practice government present arrangement treasury department except perhaps operation late deposit act always allow even existence national bank make temporary use state bank particular place portion revenue discretionary power might continue congress deem desirable whatever general system adopt long connection voluntary need perhaps anticipate difficulty little dependence bank must attend every connection compulsory nature arrange make bank fix part machinery government undoubtedly power congress regulate guard prevent public money apply use intermingled affair individual thus arrange although would give government entire control fund desire secure plan propose would must admit great degree accomplish one object recommend plan judgment separation fiscal concern government individual corporation observation recommend whole matter dispassionate reflection confidently hop conclusion may reach deliberation one hand shall give safety stability fiscal operation government consistent genius institution interest wish great mass constituent hope nothing would occur make necessary occasion allusion late national bank circumstance however connect present state affair bear directly character government welfare citizen feel excuse neglecting notice charter terminate banking privilege 4th march 1836 continue corporate power two year sole purpose close affair authority use corporate name style capacity purpose suit final settlement liquidation affair act corporation sale disposition estate real personal mixed purpose manner whatsoever banking privilege cease effect transfer bank new state institution recently incorporate trust discharge debt settlement affair trustee authority congress adjustment subsequently make large interest government stock institution manner trust unexpectedly create upon act grant charter involve great public interest execute would circumstance fit subject inquiry much deserve attention embrace redemption obligation authority credit united state give value two year allow nearly end well understood trustee redeem canceled outstanding note bank reissue actually reissue since 3d march 1836 note receive vast amount accord official statement late 1st october last nineteen month bank privilege give charter expire control uncanceled note late bank united state amount actual circulation state bank agency transitu thus show upward ten million half note old bank still keep outstanding impropriety procedure obvious duty trustee cancel put forth note institution whose concern undertake wind trustee right reissue note see reason may continue expiration two year one could anticipate course extraordinary prohibitory clause charter quote accompany penalty special provision enforce general law prevention similar act future view subject alone interposition require united state settle trustee stock withdrawn fund former direct liability creditor old bank yet notes institution continue send forth name apparently upon authority united state transaction connect employment bill old bank vast extent result unfortunately interest individual may deeply compromise without undertake decide far form trustee could make liable note contain obligation part old bank put circulation expiration charter without authority government indemnity case loss question still press upon consideration whether consistent duty good faith part government witness proceed without single effort arrest report commissioner general land office lay secretary treasury show affair office conduct past year disposition public land one important trust confide congress practicability retain title control extensive domain general government time admit territory embrace federal union coequals original state seriously doubt many wise statesman fear would become source discord many carry apprehension far see seeds future dissolution confederacy happily experience already sufficient quiet great degree apprehension position one time assume admission new state union foot original state incompatible right soil united state operate surrender thereof notwithstanding term compact admission design regulate wisely abandon whether new old state agree right soil public land remain federal government land constitute common property disposed common benefit state old new acquiescence principle people new state naturally promote disposition adopt liberal policy sale public land policy limit mere object selling land great possible sum money without regard high consideration find advocate contrary generally concede whilst mode disposition adopt government always prudent one yet lead object ought early settlement cultivation land sell discountenance prevent accumulation large tract hand must necessarily retard growth new state entail upon dependent tenantry attendant evils question embrace important interest well calculate enlist feeling people every quarter union naturally give rise numerous plan improvement exist system distinctive feature policy hitherto prevail dispose public land moderate price thus enable great number enter competition purchase accomplish double object promote rapid settlement purchaser time increase receipt treasury sell cash thereby prevent disturb influence large mass private citizen indebted government voice control bring market faster good land suppose want improvement thereby prevent accumulation large tract hand apply proceeds sale general purpose government thus diminish amount raise people state taxation give state portion benefit derive common fund manner quiet time perhaps equitable devised provision occasional enactment behalf special interest deem entitle favor government execution produce result beneficial upon whole could reasonably expect matter vast complicate excite upward acre sell great part believe purchased actual settlement population new state territory create public domain increase 1800 1830 less upward soul constitute latter period whole people united state increase since accurately know whole may safely estimate three half million souls compose nine state representative constitute senate house representative united state thus form body free independent landholder rapidity unequaled history mankind great result produce without leave anything future adjustment government citizen system much accomplish intrinsically bad occasional modification correct abuse adapt change circumstance may think safely trusted future management extensive interest much virtue stability although great obvious improvement decline change never make without full examination clear demonstration practical utility history past assurance safe rule action depart relation public land believe necessity exist interfere fundamental principle system public mind even new state desirous radical alteration contrary general disposition appear make modification addition effectually carry original policy fill new state territory industrious independent population modification perseveringly press upon congress occupy much time year past probably long time come sooner satisfactorily adjust reduction cost portion public land ascertain unsalable rate establish law graduation accord relative value price may hereafter sell worthy consideration whether justice may do every interest matter vexed question set rest perhaps forever reasonable compromise conflict opinion hitherto offer public sale land dispose one uniform price whatever difference might intrinsic value lead consideration urge favor measure refer almost land district particularly land long survey expose sale still remain numerous large tract every gradation value government price downward land purchased government price long well conveniently obtain amount large tract even improvement adjacent land never raise price present uniform price combine irregular value operate prevent desirable compactness settlement new state retard full development wise policy land system found injury several state land lie united state whole remedy propose reduction price accord length time land market without reference circumstance certainty efflux time would always case perhaps even generally furnish true criterion value probability person reside vicinity period reduction price approach would postpone purchase would otherwise make purpose avail low price consideration similar character hitherto successfully urge defeat graduation upon time may reasonable desire upon subject satisfy without encounter objection concede abstract principle price public land proportion relative value far accomplish without depart rule heretofore observe require fix price case private entry difficulty subject seem lie mode ascertain value would safest plan adopt many state basis taxation actual valuation land classification different rate would practicable expedient relative value public land old district certain length time market appraise classed two rate present minimum price officer employ branch public service mode deem preferable make price permanent upon come report shall prove satisfactory congress could object graduation accomplished way objection hitherto urge avoid would seem step restriction sale limited quantity actual improvement would free exception full exposition value land thus furnish extensively promulgated person live distance would inform true condition enable enter competition reside vicinity mean acquire independent home would bring within reach many unable purchase present price population new state would make compact large tract would sell would otherwise remain hand would land bring within mean large number purchaser many person possess great mean would content settle large quantity poor land rather emigrate far west pursuit small quantity well land measure would also seem consistent policy exist law convert public domain cultivate farm own occupant policy best promote send emigration almost interminable stream west occupy group best spot land leave immense waste behind enlarge frontier beyond mean government afford adequate protection encourage occupy reasonable denseness territory advance find best defense compact front present indian tribe many bring consideration subject advantage local knowledge great experience desirous make early final disposition every disturb question regard important interest suggestion shall degree contribute accomplishment important result afford sincere satisfaction section country public land sell register receiver little subject worthy inquiry whether many case two district may consolidate number person employ business considerably reduce indeed time come true policy general government state transfer reasonable equivalent refuse unsold land withdraw machinery federal land office altogether take comprehensive view federal system believe one great excellency consist interfere little possible internal concern state look forward great interest result modification exist law respect price public land might also favorable influence legislation congress relation another branch subject many ability buy present price settle land hope acquire cultivation mean purchase preemption law time time pass congress encroachment right unite state excuse plea necessity fact dispossess nobody enter upon waste domain give additional value public land vicinity intention ultimately pay government price much weight time time attach consideration congress pass law give actual settler public land right preemption tract occupy minimum price law instance retrospective operation year passage crowds new settler find public land similar reason like expectation indulge privilege course legislation tend impair public respect law country either law prevent intrusion upon public land execute impracticable inexpedient modify repeal public land consider open occupied law thrown open intend instance legalize make legal disposed conform law may enjoy least equal privilege believe disposition congress open public land occupancy without regular entry payment government price course must tend bad evil credit system find necessary abolish would seem therefore part wisdom sound policy remove far practicable cause produce intrusion upon public land take efficient step prevent future would single measure effective removing plausible ground intrusion graduation price already suggest short period industry economy part country would enable poor citizen accumulate mean buy home low price leave without apology settle land circumstance would enlist sympathy favor law would readily execute without violence public opinion large portion citizen seat public land without authority since passage last preemption law ask enactment another enable retain land occupy upon payment minimum government price ask repeatedly grant future may judge past little harm do interest treasury yield request upon critical examination find land sell public sale since introduction cash payment 1820 produced average net revenue 6 cent acre minimum government price reason suppose future sale productive government therefore adequate pecuniary interest induce drive people land occupy purpose sell others entertain view recommend passage preemption law benefit connection preparatory step toward graduation price public land effectual provision prevent intrusion hereafter indulgence settle land expectation past legislation would make rule future time remove plausible ground intrusion excuse adopt efficient mean prevent hereafter appear judicious disposition make difficult subject limitation restriction guard abuse execution preemption law necessarily attract careful attention congress circumstance consider expedient authorize float claim shape heretofore doubtless would hereafter prolific source fraud oppression instead operate confer favor government industrious settler often use minister spirit cupidity expense meritorious class accompany report secretary war bring view state army various subject confide superintendence officer principal part army concentrate florida view expectation bring war territory speedy close necessity strip post maritime inland frontier entire garrison purpose assemble field army less men would seem indicate necessity increase regular force superior efficiency well greatly diminish expense description troop recommend measure one economy well expediency refer report reason induce secretary war urge reorganization enlargement staff army ordnance corp fully concur however compatible interest people maintain time peace regular force adequate defense extensive frontier period danger alarm must rely principally upon militia general arrangement render description force efficient long subject anxious solicitude recommend first congress general washington since frequently bring notice recently importance strongly urge immediate predecessor provision constitution render necessary adopt uniform system organization militia throughout united state present insurmountable obstacle efficient arrangement classification heretofore propose invite attention plan submit secretary war organization volunteer corp instruction militia officer simple practicable equally advantageous general arrangement whole militia united state moderate increase corp military topographical engineer recommend predecessor conviction propriety say necessity measure order enable perform various important duty impose upon induces repeat recommendation military academy continue answer purpose establishment furnishes officer army serf diffuse throughout mass citizen individual possess military knowledge scientific attainment civil military engineering present cadet bound consent parent guardian remain service five year period enlistment unless sooner discharge thus exact one year service army education complete appear sufficient government ought command long period service educate public expense recommend time enlistment extend seven year term engagement strictly enforce creation national foundry cannon common service army navy united state heretofore recommend appear require order place ordnance equal footing country enable branch service control price article graduate supply want government well regulate quality insure uniformity reason induce recommend erection manufactory gunpowder direction ordnance office establishment manufactory small arm west alleghany mountain upon plan propose secretary war contribute extend throughout country improvement exist establishment similar description atlantic state tend much economical distribution armament require western portion union system remove indian west mississippi commence jefferson 1804 steadily persevere every succeed president may consider settled policy country unconnected first system improvement inducement hold indian confine great abundance game find west beneficial effect removal make apparent philanthropic enlighten policy adopt purchase land east mississippi liberal price give provision inserted treaty application fund receive exchange purpose best calculate promote present welfare advance future civilization measure attend thus far happy result see refer report commissioner indian affair sanguine expectation friends promoter system realize choctaw cherokee tribes first emigrate beyond mississippi part abandon hunter state become cultivator soil improvement condition rapid believe fitted enjoy advantage simple form government submit received sanction strongly urge subject upon attention congress stipulation make indian tribe remove beyond mississippi except band wyandots six nation new york menomonees munsees stockbridges wisconsin miamies indiana menomonees expect arrangement emigration complete present year resistance oppose removal tribe even treaty make effect arisen various cause operate differently instance instigate resistance person trade acquisition annuity important personal influence interested chief obstacle must overcome government relinquish execution policy without sacrifice important interest abandon tribe remain east mississippi certain destruction decrease number tribes within limit state territory rapid remove protected association evil practice exert pernicious destructive influence destiny induce labor acquire property acquisition inspire feeling independence mind cultivate taught value salutary uniform law make sensible blessing free government capable enjoying advantage possession property knowledge good government free give direction please labor sharer legislation person profit industry protect secured conviction ot importance union peace among preservation amicable relation u interest united state would also greatly promoted freeing relation general state government prove embarrass incumbrance satisfactory adjustment conflict title land cause occupation indian cause resource whole country develop power state general government improve enterprise white population intimately connect subject obligation government fulfill treaty stipulation protect indian thus assemble new residence interruption disturbance tribes nation indian person person whatsoever equally solemn obligation guard indian hostility border settlement stretch along line mile enable government redeem pledge indian afford adequate protection citizen require continual presence considerable regular force frontier establishment chain permanent post examination country make view decide suitable point erection fortress work defense result present secretary war early day together plan effectual protection friendly indians permanent defense frontier state report secretary navy herewith communicate appear unremitted exertion make different carry effect authorize measure extension employment naval force launch preparation ship line pennsylvania complete repair ship line ohio delaware columbus may notice form respectable addition important arm national defense commerce navigation receive increase aid protection present year squadron pacific brazilian station much increase mediterranean although small adequate present want commerce sea addition make squadron west india station large force commodore dallas actively efficiently employ protect commerce prevent importation slave cooperate officer army carry war florida satisfactory condition naval force abroad leave disposal mean conveniently provide home squadron protection commerce upon extensive coast amount appropriation require squadron find general estimate naval service year 1838 naval officer engage upon coast survey render important service navigation discovery new channel harbor new york large ship may pass without danger must afford important commercial advantage harbor add greatly value naval station accurate survey georges shoal coast massachusetts lately complete render comparatively safe navigation hitherto consider dangerous considerable addition make number captain commander lieutenant surgeon assistant surgeon navy addition render necessary increase number vessel put commission answer exigency grow commerce attention respectfully invite various suggestion secretary improvement naval service report exhibit progress condition mail service operation department constitute one active element national prosperity gratify observe vigor conduct mail route united state cover extent mile increase mile within last two year annual mail transportation rout mile increase mile within period number also increase receive mail less week large portion daily contractor postmaster general represent attend duty commendable zeal fidelity revenue department within year end 30th june last liability accrue within time increase revenue precede year many interesting detail refer report accompany paper particular attention invite necessity provide safe convenient build accommodation department lay congress copy report submit pursuance call make upon head department suggestion experience might enable make legislative provision may advantageously adopt secure faithful application public money object appropriate prevent misapplication embezzlement intrusted expenditure generally increase security government loss disbursement needless dilate importance provide new safeguard within power legislation promote end little add recommendation submit accompany paper law term service important collect disburse officer civil department limit four year reappointed bond require renew safety public much increase feature law doubt application officer intrust collection disbursement public money whatever may tenure office would equally beneficial therefore recommend addition suggestion present head department may think useful general provision officer army navy civil department intrust receipt payment public money whose term service either unlimited long time four year require give new bond good sufficient surety expiration every period change period terminate fiscal year 1st october 1st april frequently recommend appear desirable distress casualty steamboat frequently happen year seem evince necessity attempt prevent mean severe provision connect customhouse paper subject submit attention congress secretary treasury last annual report notice present session additional detail doubtless receive early careful consideration press importance appear require attention heretofore frequently call affair district columbia ask entire dependence congress give constant claim upon notice separate constitution rest union limit extent aided legislature would seem spot wise uniform system local government might easily adopt district however unfortunately left linger behind rest union code civil criminal defective full obsolete inconvenient provision form portion two state discrepancy law prevail different part territory small although select seat general government site public edifices depository archive residence officer intrust large amount public property management public business yet never subject receive special comprehensive legislation circumstance peculiarly demand well aware various subject great magnitude immediate interest press consideration congress believe one appeal directly justice liberal even generous attention interest district columbia thorough careful revision local government