The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1840-01-17 00:00:00

MESSAGE

OF THE
PRESIDENT OF THE UNITED STATES.

WASHINGTON, December 23, 1839.
Fellow-Citizens of the Senate
and House of Representatives :
I regret that I cannot on this occasion congratulate you
that the past year has been one of unalloyed prosperity. The
ravages of tire and disease have painfully afflicted otherwise
flourishing portions of our country ; and serious embarrass-
ments yet derange the trade of many of our cities. But,
notwithstanding these adverse circumstances, that general
prosperity which has been heretofore so bountifully bestowed
upon us by the Author of all good, still continues to call for
our warmest gratitude. Especially have we reason to rejoice
in the exuberant harvest which has lavishly recompensed
well-directed industry, and given to it that sure reward which
is vainly sought in visionary speculations. I cannot indeed
view without peculiar satisfaction, the evidences afforded by the
past season of the benefits that have sprung from the steady
devotion of the husbandman to his honourable pursuit. No
means of individual comfort is more certain, and no source
of national ;prosperity is so sure. Nothing can compen-
sate a people for a dependance upon others for the bread
they eat, and that cheerfa! abundance) on which the happiness
every one so much depends, is to be looked for no where of
with such sure reliance as in the indilstry of the agriculturist
and the bounties of the earth.
With foreign countries, our relations exhibit the same
favourable aspect which was presented in my last annual mes-
sage, and afford continual proof of the wisdom of the
pacific, just, and forbearing policy adopted by the first admi-
nistration of the federal government, and pursued by its
successors. The extraordinary powers vested in me by an
act of congress, for the defence of the country in an-emer-
gency, considered so far probable as to require that the exe-
cutive should possess ample means to meet it, have not been
exerted. They have, therefore, been attended with no other
result than to increase, by the confidence thus reposed in
me, obligations to maintain, with religious exactness, the
cardinal principles that govern our intercourse with other
nations. Happily, in our pending questions with Great
Britain, out of which this unusual grant of authority arose,
nothing has occurred to require its exertion ' • and as it is
about to return to the legislature, I trust that no future
necessity may call for its exercise by them, or its delegation
to another department of the government.
For the settlement of our North-eastern boundary, the
proposition promised by Great Britain for a commission of
exploration and survey, has been received, and a counter
project, including also a provision for the certain and final
adjustment of the limits in dispute, is now before the British
government for its consideration. A just regard to the de-
licate state of this question, and a proper respect for the
natural impatience of the State of Maine, not less than a
conviction that the negotiation has been already protracted
longer than is prudent on the part of either government,
have led me to believe that the present favourable moment
should on no account be suffered to pass without putting the
question for ever at rest. I feel confident that the govern-
ment of her Britannic Majesty will take the same-view of this
subject, as I am persuaded it is governed by desires equally.
strong and sincere for the amicable termination of the con-
troversy.
To the intrinsic difficulties of questions of boundary lines,
especially those described in regions unoccupied, and but
partially known, is to be added in our country the embar-
rassment necessarily arising out of our constitution, by which
the general government is made the organ of negotiating,
and deciding upon the particular interests of the States on
whose frontiers these lines are to be traced. To avoid
another controversy in which a State government might
rightfully claim to have her wishes consulted, previOnsly to
the conclusion of conventional arrangements concerning her
rights of jurisdiction or territory, I have thought it neces-
sary to call the attention of the government of Great Britain
to another portion of our conterminous dominion of which
the division still reniains to be adjusted. I refer to the line
front the eterauce of Lake Superior to the most northwes-
tern point of the Lake of the Woods, stipulations for the
telt of which are to be found in the seventh article of
ty of Ghent. The commissioners appointed under
isle by the two governments having differed in their
s, nude several reports, according. to its stipulations
le points of disagreement, and these differetices are,
be sehrnitted to the arbitration of some friendly
to or State. The disputed points should,be settled,
line desi;;llated, before the territorial gaiertitnent, of
it is one of the boundaries, takes its place in the
s a state, and I rely upon the cordial co-operation of
ta,l evernment to effect that object.
fy reason to believe that distutbances like those
.eieeed the neighbouring British Provinces will
se !. se the sources of corder contentions,-orinter-
j,t •in the continuance of that good understanding
'it is the mutual interest of Great Britain and the
I Stetea to preserve and maintain. :
Ain the Provinces themselves tranquillity is restored,
-- s our frontier that misguided sympathy in favour of
what was presumed to he a general effort in behalf of popular
rights, and which in some instances misled a few of our more
inexperienced citizens, hassubsided into a rational conviction
strongly opposed to all intermeddling with the internal affairs
of our neighbours. The people of the United States feel, as
it is hoped they always wines warm solicitude for the. suc-
cess of all who are sincerely endeavouring to improve the po-
litical condition of mankind. This generous feeling they
cherish towards the most distant nations ; and it was, natu-
ral, therefore, that it should, be awakened with more than
common warmth in behalf of their immediate neighbours.
But it does not belong to their character, as a community, to
seek the gratification of those feelings in acts which violate
their duty as citizens, endanger the peace of their country, and
tend to bring upon it the stain of a violated faith towards
foreign nations. If, zealous to confer benefits oit others,
they appear for a moment to lose sight of the permanent ob-
ligations imposed upon them as citizens, they are seldom long
misled. From all the information I receive, confirmed to
some extent by personal observatiOn, I am satisfied that no
one can now hope to engage in ,such enterprises without en-
countering public indignation, in addition. to the erest.'
penalties of the law. • sevollW
Recent information also leads me to hope
grants from her Majesty's Provinces, who have sonilitleftiO:
within our boundaries, are disposed to become peaceitil6re..
sidents, and to abstain from all, attempts to, endanger Die
peace of that country which has afforded them an
a review of the occurrences on both sides of thaine, it is Satist
factory to reflect, that in almost every complaint against our_
country, the offence may be traced to emigrants from the
Provinces who have sought refuge here. Its the few instances
in which they were aided by citizens of the United States,
the.acts of these misguided men were not only in direct con-,
travention of the laws and well known wishes of their own
Government, but met with the decided disapprobation of the.
people of the United States.
I regret to state the appearance of a different spirit among
her Majesty's subjects in the Canadas. The sentiments of
hostility to our people and iustitutions, which have been so
frequently expressed there, and the disregard of our rights
which have been manifested on some occasions, have, I am
sorry to say, been applauded and encouraged by the people,
and even by some of the subordinate local authorities, of the
Provinces. The chief officers in Canada fortunately have not
entertained the same feeling, and have probably prevented
excesses that must have been fatal to the peace of the two
countries.
I look forward anxiously to a period when all the transact
tions which have grown out of this condition of our affairs,
and which have been made the subjects of complaint and re-
monstrance by the two-governments respectively, shall be
fully examined, and the proper satisfaction given where it is
due from either side.
Nothing has occurred to disturb the harmony of our inter-
course with Austria, Belgium, Denmark, France, Naples,
Portugal, Prussia, Russia, or Sweden. The internal state of
Spain has sensibly improved, and a well grounded hopeexiats
that the return of peace will restore to the people of that
country their former prosperity, and enable the Government
to fulfil all its obligations at home and abroad. The Govern?
silent of Portugal, I have the satisfaction to state; has paid in
full the eleventh and last instalment due to our citizens for
the claims embraced in the settlement made with it on the
3d of March, 1837.
I lay before you treaties of commerce negotiated with the
Kings of Sardinia and the Netherlands, the ratifications of
whic have been exchanged since the adjournment of Con-
gress. The liberal principles of these treaties wilf recom-
mend them to your approbation. That with Sardinia is the
first treaty of commerce formed by that kingdom, and it will,
I trust, answer the expectations of the present sovereign, by
aiding the developement of the resources of his country, and
stimulating the enterprise of his people. That with the Ne-
therlands happily terminates a long existing subject of dis-
pute, and removes from our future commercial intercourse
all apprehension of embarrassment.
'Pee King of the Netherlands has also, in further illustra-
tion of his character for justice, and of his desire to remove
every cause of dissatisfaction, made compensation for an
American vessel captured in 1800 by a French privateer, and
carried into Curaeoa, where the proceeds were, appropriated
to the Use of the colony, then, and for a short time after, un-
der the dominion of Holland. _

that nrt:
opinioa:

The death of the Sultan, has produced no alteration in our
relations with Turkey. Our newly appointed minister resi-
dent has reached Constantinople, and I have received assur-
ances from the present ruler that the obligations of our treaty
and those of friendship, will be fulfilled by himself in the
sai,:e spirit that actuated his. illustrious father..
ret to be obliged to inform you that no convention for
cent of the claims of our citizens upon Mexico has
athiediby the government of that country. The first
formed for that purpose was not presented by "the
__ of Me_xico for.the approliation of its congess, from
that the King of -Prussia, the arbitrator in case of
,recinent in the joint' coonoission to be appointed by the
ed -States and Mexico, would not consent to take upon
elf that friendly office. Although not. entirely satisfied
i toe cOurse:purSued by. Mexico, I felt no hesitation in
icing in the most ,conciliatory spirit the explanation
red, and also cheerfully consented to a new convention,
rde.r to arrange the payments proposed to be made to our
:ens, in a manner which, while equally jnst to them, was
ned less onerous and inconvenient to the Mexican go.-
unent. • - Relying confidently upon the intentions -of that
erninent, Mr. Ellis was directed to repair to Mexico, and
oinatie intercouse has been resumed between the two
ntries. The new convention has, he informs us, been
mtly submitted by the President of. that republic to its
;Tess, under circumstances which promise a speedy rati-,
Lion ; a result which I cannot allow myself to doubt.
nstructions have been given to the Commissioner of the
ited States under out Convention with Texas, for the de-
rcation of the line which separates us from that Republic.
e commissioners df both governments met in New_ Orleans
August last. The joint commission was organized, and
nrned to.. convene at the same place on the 12th of Oc -
It is presumed to be now in the.performance of its

uen r

overnment of Texas has shown its desire to cal-
Iv relations with us, by a prompt reparation for
-tained of in the cases of two vessels of the United

• America a convention has been concluded
: .of its former treaty with the United States.
•atified before the departure of our late Charge
,Jiti that country, and the copy of it brought by
: t.ftceived before the adjournment of the Senate
.ssion.. In the mean while, the period limited
..,Ige of ratifications having expired, I deemed it
consequence of the death of the Charge
to send a special agent to Central America, to
airs of our mission there, and to arrange with the
an extension of the time for the ex.thange a ra-

,sion created by the States which formerly cona-
of Colombia, for adjusting the claims
—.mat, has, by a very unexpected con-
.der which it acts, decided that no
-,e claims of citizens of the U. S.
;)y Columbian privateers, and were
- ~its in the judicial tribunals. This
J. S. to apply to the several
Go-
redress. 'With all these—New
'cuador, a perfectly good under-
... with Venezuela is faithfully, ear-
t country, in the enjoyment of
:...aneing in prosperity under the
o_,stinguished President, General
,beral commercial convention has
:la will be trzunnitted to the Se-

in Empire of Brazil our relations
.es our friendly intereowse with
South America—the Argentine
17,quay, Chili, l'erg, and
Bolivian .COofedera,

zens in that quarter, but the obligations on the new govern-
ments which have arisen out of that Confederation to obserie
its treaty stipulations, will no doubt be soon understood,
and it is presumed that no indisposition will exist to fulfil
those which it contracted with the United States.
The financial operations of the Government during the
present year have, I am happy to say, been very successful.
The difficulties under which the Treasury Department has
laboured from known defects in the existing laws relative to
the safe keeping of the public moneys, aggravated by the sus-
pension of specie
payments by several of the banks holding
public deposits, or indebted to public officers for, notes
received in payment of public dues, have been surmounted to
a very gratifying extent. The large current • expenditures
have been punctually met, and the faith of the government
in all its pecuniary concerns has been scrupulously maintained.
Vie nineteen millions of Treasury notes authorised by the
act of Congress of 1837, and the modifications thereof, with
a *iew to the indulgence of merchants on their duty bonds,
and of the 'deposit banks, in the payment of public moneys
held by them, have been so punctually redeemed as to leave
less than the original ten millions outstanding at any one
time, and the whole amount unredeemed now falls short of
three millions. Of these the chief portion isnot due till next
year, mid the whole would have been already
could the Treasury have realised the payments due to it from
the banks. If those due from them during the next year
shall be punctually made, and if Congress shall keep the ap-
propriations within the estimates, there is every reason to
believe that all the outstandinsTreasury note. extinguished
deemed, and the ordinary expenses defrayed, witshocrt imbepores:
ing on the people any additional burden, either for loans or
increased taxes.
To avoid this, and to keep the expenditure within reasona-
ble bounds, is a duty, second only in imptirptanrocteectteihtnhhefphruer-
servation of our national character, and the
citizens in their civil and political rights. The creation, in
time of peace, of a debt likely to become permanent, is.an
which many of the States are apparently approaching
evil for which there is no equivalent,. The rapidit
ytowthitihs
condition, admonishes us of
One,fourown notd the least important,
is inamaipmoerrtatnot,
is to keep the Federals
Government
impressive to be disregarded. .
e and ouritsh
alwaysest
functions,
ea
tichohnsd,i tsihoonuit
do
discharge, a
with
their exercise be required by any sudden conjuncture of pub-
lic li
•nfairs—a condition to which we are always exposed, and
which may occur when it is least expected. • To this end, it
is indispensable that its finances should be untrammelled,
and its resources, as far as practicable, unencumbered. No
circumstance could present greater obstacles to the accom-
plishment of these vitally important objects, than the creation
of an onerous national debt. Our own experience, and also
that of other nations, have demonstrated the unavoidable and
fearful rapidity with which a public debt is increased, when
the government has once surrendered itself to the ruinous
practice of supplying its supposed necessities by new loans.
The struggle, therefore, on our part, to be successful, must
be made at the threshold. To make our efforts effective,
severe economy is necessary. This is the surest provision
for the national welfare ; and it is, at the same time, the best
preservative of the oanciples on which our institutions rest.
Simplicity and ecoinily in the affairs of State have never
failed to chasten andinvigorate republican principles, while
these have been as surely subverted by national prodigality,
under whatever specious pretext it may have been introduced
or fostered. •
These considerations cannot be lost upon a people who
have never been inattentive to the effect of their policy upon
the institutions they have created for themselves; but at the
present moment their force is augmented by the necessity
which a decreasing revenue must impose. The check lately
given to importations of articles subject to duties, the de-
rangements in the operations of internal trade, and especially
the reduction gradually taking place in our tariff of duties,
all tend materially to lessen'our receipts; indeed it is pro.
bable that the diminution resulting from the last cause alone,
will not fall short of five millions' of dollars in the'year 1842,
as the final reduction of all duties to 20 per cent. then takes
effect. The whole revenue then accruing from the customs,
and from the sales of public lands, if not more, will undoubt--
edly be wanted to defray the necessary expenses of the Go-
vernment under the most prudent administration of its af-
fairs. These are circumstances that impose the necessity of
rigid economy, and require its prompt and constant exercise.
With the legislature rest the power and duty of so adjusting
the public expenditure as to promote this end. By the pro-
visions of the constitution, it is 'only is consequence of ap-
propriations made by law that money can be drawn from the
treasury ; no instance has occurred since the establishment
of the government in which the executive, though a compo-
nent part of the legislative power, hasinterposed an objec-
tion to an appropriation bill on the sole ground of its extra-
vagance. His duty in this respect has been considered ful-
filled. by requesting such appropriations 'only as the public
service may be reasonably expected to require. In the pre-
sent ear lest direction of the public mind towards this sub-
ject, both the executive and the legislattire have evidence of
the strict responsibility to which they will be held ; and,
while 1 am conscious of my own anxious efforts to perform
with fidelity this portion of my publiC functions, it is a,satis-
faction to me •to. be able. to count on a cordial co-operation
from you. • •
At the time I entered upon my present duties, our ordinary
disbursements-s-without including those on account of the
public debt, the post office, and the trust funds in charge of
the government-'-had been' largely increased by appropria-
--Cons for the removal of the Indians, for repelling Indian hos-
tilities,* and for other less urgent expenses which grow out of
an overflowing treasury. Independent of the redemption of
the public debt and trusts, the gross expenditures of seven-
teen and eighteen millions in 1834 and 1335 had, by these
causes, swelled to twenty-nine millions in• 1836, and the ap-
propriations for 1837, made previously to the 4th of
March' caused the expenditure to rise to the very large
amount of thirty-three millions. We were enabled during
the year 1838, notwithstanding the continuance of our Indian
embarrassments, somewhat to reduce this amount ; and that
for the present year 1839, will not in all probability exceed
twenty-six millionSs—or six millibrialess than it was last year.
With a determinatiOrlOiso far as depends on me, to continue
this reduction directed the estimates for 1840 to be
subjected to the.seycest scrutiny, and to be limited to the
absolute requirements, of the public service. They will be
'found less than.theiwenditures of 1839 by over five millions
• of dollars. -
The precautionary measures which will be recommended
by the secretary-6f the treasury, to protect faithfully the pub-
slic credit, under the fluctuations and contingencies to which
lent reoiptS ando*cpenditures are exposed, arid especially in
a commercial erVA like the present,- arc commended to your
[The message. then proceeds to allude to•the sale of public
niniciPal defences of the seaports and navy yards
—the negontatioris•on the subject of the Florida war—the re-
port of the secretary of the navy—the mail service, and the
revenue of the post-office department—the power assumed
by territorial legislatures to authorise the sale of bonds by
corporate companies, on the guarantee of the territory—the
collection, keeping, and disbursement of the revenue—and
the monetary affairs of the Union. The last topic occupies
the greater part of the message. The following are the most
important paragraphs.]
The continued agitation of the question relative to the best
mode of keeping and disbursing the public money, still inju-
riously affects the business of the country. The suspension
of specie payments in 1837, rendered the use of depositbanks,
as prescribed by the act of 1836, a' source rather of embar-
rassment than aid, and of necessity placed the custody of
most of the public money, afterwards collected, in charge of
the public officers. The new securities for its safety, which
this required, were a principal cause of my convening an ex-
tra session of .6itigress ; but in consequence of a disagree-
ment between the two houses, neither then, nor at any sub-
sequent periodVhas there been any legislation on the subject.
The effort made at' the last session to obtain the authority of
congress to punish the use of public money for private pur-
poses as a crime, a measure attended under other govern-
ments with signal advantage, was also unsuccessful, from
diversities of opinion in that body, notwithstanding the an-
xiety doubtless felt by it to afford every practicable security.
The result of this is still'to leave the custody of the public
money without those safeguards which have been for several
years earnestly desired by the 'executive ; and as the remedy
is only to be found in the action of the legislature, it imposes
on me the duty of again submitting to you the propriety of
passing a law, providing for the safe keeping of the public
moneys. and especially to ask that its use for private pur-
poses, by any officers entrusted with it, may be declared to be a
'elony, punishable with penalties proportioned to the magni-
nide of the offence. . _

These circumstances, added to known defects in the exist-
ing laws, and unusual derangement in the general operations
of trade, have, during the last three years, much increased
the difficulties, attendant on the collection, keeping, and dis-
bursement of the revenue, and called forth corresponding
exertions from those having them in charge. Happily these
have been successful beyond expectation. Vast sunis have
been collected and disbursed by the several Departments
with unexpected cheapness and ease ; transfers have been
readily made to every part of the Union, however distant ;
and defalcations have been far less than might have been

expected, from the absence of adequate legal restraints.
Since the officersot the Treasury and Postoffice Departments
were charged with the custody of most of the public moneys
received by them, there have been collected sixty-six millions
of dollars, and? excluding the case of the late collector at
New York; the aggregate amount o losses sustained in the
collection cannot, it is believed, exceed sixty thousand dol-
lars. The defalcation of the late collector at that city, of
which Congress has been fully informed, ran through all the
modes of keeping the public money that have hitherto been
in use, and was distinguished by an aggravated disregard of
duty, that broke through the restraints of every system, and
cannot, therefore, be usefully referred to as a test of the
comparative safety. of either. Additional information will
also be furnished by the report of the Secretary of the Trea-
sury, in reply to a call made upon that officer by the House
of Representatives at the last session, requiring detailed infor-
mation on the subject of defaults by public officers or agents
under each administration, from 1789 to 1837. This docu-
ment will be submitted to you in a few days. The general

results, (independent of the Postoffice, which is kepi sepa-
rately, and will be stated bX itself;) so far as they bear upon
this subject, are, that the liisges which have been, and are
likely to be, sustained, by any class of agents, have been—
the greatest by bankers, including, as required in the resolu-
tion, their depreciated paper received for public dues ; that
the next largest have been by .disbursing officers, and the
least by collectors and receivers. If the losses on duty bonds
are included, they alone will be three-fold those by both col-
lectors
and receivers. Our whole experience, therefore,
furnishes the strongest evidence that the desired legislation
of Congress is alone wanting to insure in those operations
the highest degree of security and facility. Such also appears
to have been the experience of other nations. From the re-
sults of inquiries made by the Secretary of the Treasury in
regard to the practice among them, I am enabled to state,
that in twenty-two out of twenty-seven foreign gOvernments,
from which undoubted information has been obtained, the
public moneys
,are kept in charge of public officers. This
concurrence-;oPoPinion in favour of that system is perhaps
as great as exists on any question of internal administration.
In the modes of business and official restraints on disbur-
sing officers, no legal change was produced by the suspension
of specie payments. The report last referred to will be found
to contain also much useful information in relation to this
subject.•

I have heretofore assigned to Congress my reason's for
believing that the establishment of an Independent National
Treasury, as contemplated by the constitution, is necessary
to the safe action of the federal government. The suspension
of specie payments in 1837, by the banks having the custody
of the public money, shewed in so alarming a degree our de-
pendence on those institutions for the performance of duties
required by law, that I then recommended the entire disso-
lution of that connection. This recommendation has been
subjected, as I desired it should be, to severe scrutiny and
animated discussion ; and I allow myself to believe, that,
notwithstanding the natural diversities of opinion which may
be anticipated on all subjects involving such important con-
siderations, it has secured in its favour as general a concur-
rence of public sentiment as could be expected on one of
such magnitude.
. .

Recent events have also continued to develope new objec-
tions to such a connection. Seldom is any bank, under the
existing system and. practice, able to meet, on demand, all
its liabilities for deposits and notes in circulation. It main-
tains specie payments, and transacts a profitable business,
only by the confidence of the public in its solvency; and
whenever this is destroyed, the demands of its depositors
and note-holders—pressed more rapidly than it can make
,eollections from its debtors—force it to stop payment. This
loss, f confidence, with its consequences, occurred in 1837,
and air.:rded the apology of the banks for their suspension.
The public then acquiesced in the validity of the excuse ;
and, while the state legislatures did not exact from them
.their forfeited chltrters, Congress, in accordance with the
recommendation of 44-Le executive, allowed them time to pay
aver the public _money ,thew held, although compelled to issue
itreasnry notes to sUpply.the fie.,ficiency thus created. ,-
It nownppears that there are other motives than a want of

public eonfidence under which the banks seek to justify
themselves in a refusal to meet their obligations. Scarcely
were the country and government relieved, in a degreoe,. from
the difficulties occasioned by the general suspension tor thea
when a partial one, occurring within thirty months though
former, produced new and serious embarrassments,well alleged
it had no palliation insuch circumstances
in justification of that which had previously
There was nothing in the condition of;
commerce was endan-
ger a well-managed banking
de-
ranged by no foreign war :every tthe acsova ea
rt
ert taken
teon place.
the
more manufacturingth a
than
industry was crowned
and storehouses filled with a
• tic wants, had left our granaries a'brradsn:clinnodf
surplus for exportatn.
depreciated paper currency is entailed upon
usual abundance of our_Ean:rtat:rieiiesists: s'esi,af
tt
heie• supplying
m imidst
s t
o f this, our dtioutmte
as n-
irredeemable and
large Portion of the banks. They are not,
hb;i3;etnahe exhibition. of a loss of public confidence,
pressure from their depositors and note
business, and exchange with foreign countries, which
of
holders, but they excuse themselves by alleging that the cur-
rentcdt)lrrs
icvoepfne oat pa lsielti ,
draws the precious metals from their vaults, would require,
in order to meet it, a large curtailment of their loans to a
comparatively small portion of the community, than it will
be convenient for them to bear, or perhaps safe for the banks
to exact. The plea has ceased to be one of necessity. Con-
venience and policy are now deemed sufficient to warrant
these institutions in disregarding their solemn obligations.
Such conduct is not merely an injury to individual creditors,
but it is a wrong to the whole community, from whose
liberality they hold most valuable privileges—whose rights
they violate, whose business they derange, and the value of
whose property they render unstable and insecure. It must
be evident that this new ground for bank suspensions, in re-
ference to which their action is not only disconnected with,
but wholly independent of, that of the public, gives a cha-
racter to their suspensions more alarming than any which
they exhibited before, and greatly increases the impropriety
of relying on the banks in the ,transactions of the govern-
ment. . .
A large and highly respectable portion of our banking in-
stitutions are, it affords me unfeigned pleasure to state,
exempted from all blame on account of this second delin-
quency. They have, to their great credit, not, only conti-
nued to meet their engagements, but have 'even repudiated
the grounds of suspension now, resorted to. It is only by
such a course that the confidence and good-will' of the com-
munity can be preserved, and, in the sequel, the best interests
of the institutions themselves promoted.
New dangers to the banks are also daily disclosed from
the extension of that system .of extravagant credit of which
they are the pillars. Formerly your foreign commerce was,
principally founded on an exchange of commodities, including
the precious metals, and leaving in its transactions but little
foreign debt. Such is not now the case. Aided by the faci-
lities afforded by the banks; mere credit has become too
commonly the basis of trade. Many of the hanks them-,
selves, not content with stimulating this system among
others, have usurped the business, while theY impair the sta-
bility, of the mercantile community ; they have become
borrowers instead of lenders, they establish their agencies
abroad ; they deal largely in stocks and merchandise, they
encourage the issue of state securities until the foreign mar-
ket is glutted with them ; and, unsatisfied with the legitimate
use of their own capital, and the exercise of their lawful pri-
vileges, they raise, by large loans, additional means for every
variety of speculation. The disasters attendant on this devi-
ation from the former course of business in this country ate
now shared alike by banks and individuals', to an extent of
which perhaps there is no previous example in the annals of
our country. So long as a willingness Of the foreign lender,
and a sufficient export of our productions to meet any neces-
sary partial payments, leave the flow of credit undisturbed,
all appears to be prosperous ; but as soon as it is checked by
any hesitation abroad, or by an inability to make payment
there in our productions, the evils of the system are disclosed.
The paper currency which might serve for domestic purposes
is useless to pay the debt due to Europe. Gold and silver
are therefore drawn, in exchange for their notes, from the
banks. To keep up their supply of coin, these institutions
are obliged to call upon their own debtors, who pay them
principally in their own notes, which are as unavailable to
them as they are to the merchants to meet the foreign
demand.
The calls of the Banks, therefore, in such emergencies, of
necessity, exceed that demand, and produce a corresponding
curtailment of their accommodations and of the currency, at
the very moment when the state of trade renders it most in-
inconvenient to be borne. The intensity of this pressure on
the community is in proportion to the previous liberality of
credit and consequent expansion of the currency ; forced sales
of property are made at the time when the means of purcha-
sing are most reduced, and the worst calamities to individu-
als are only at last arrested, by an open violation of their ob-
ligations by the banks,- a refusal to pay specie for their notes,
and an imposition upon the community of a fluctuating and
depreciated currency.
These consequences are inherent in the present system.
They are 'not influenced by the banks being large or small,
created by National or State Governments. They are the
results of the irresistible laws of trade and credit. In the
recent events which have so strikingly illustrated the certain
effects of these laws; we have seen the bank of the largest
capital in the Union, established under a National charter,
and lately strengthened, as we were authoritatively informed, ,
by exchanging that for a State charter, with new and unusual
privileges—in a condition too, as it was said, of entire sound-
ness and great prosperity—not merely unable to resist these
effects, but the first to yield to them.
Nor is it to be oveilooked that there exists a chain of ne-
cessary dependence among these institutions which obliges
them, to a great extent, to follow the course of others, not-
withstanding its injustice to their own immediate creditors,
or injury to the particular community in which they are
placed. This dependence of a bank, which is in prof ortion
to the extent of its debts for circulation and deposits is not
merely on others in its own vicinity, but on all those which
connect it with the centre of trade. Distant banks may fail,
without seriously affecting those in our principal commercial
cities; but the failure of the latter is felt at the extremities
of the Union. The 'suspension at New York, in 1837, was
every where, with very few exceptions, followed,'as- soon
as it was known ; that" recently at Philadelphia immediately
affected the banks of the South and West in a similar man- '
ner. The dependence of our whole 'banking system on the
institutions in a fcw,large cities, is not found in' the laws of
their organization, but in thOse of trade and exchange. The
banks at that centre tss which currency flewssand• where it is
required in payments for merchandise, hold the' peWer of
Controlling those in regions whence it comes, while the latter
possess no means of. restraining them; so that the.iihie-of .
individual property, and the' prosperity of trade, through- the
whole interior of the country, are made to ,depend on` 'the.
good or management Of the banking institutions in the great
seats of trade on the seaboard. .
But this chain of' dependance does not stop Isere.—lt does
not terminate at Philadelphia or New York. It reaches across
the ocean, and ends in London, the centre of the credit system.
The same laws of trade, which give to the bank's in, ontsptin
stern O -
cipal cities power over the whole banking systef tli Vssitssd'
States, subject the former in their turn, to. the ruo yjsoivilf
in Great Britain. It is is not denied that ,tlie sus fish:AM
i
the New York banks in 1837, which ' Wag followed -iii'-iitai
succession throughout the Union; wasprodticed by an appli-
cation of that power; and it is now alleged, in extenuation of
the present condition of so large a portion of out banks, that'
their embarrassments have arisen froth thesaiiibicause. ' bt,l
From this influence they cannot•now entirely; eteape, foriit
has its origin in the `credit currencies of 'the twisCountrieis
it is strengthened by the current of trade and exchange, which
centres in London, and' is rendered almost irresistible by the
large debts contracted there by our useichants, our banks,
and our States. It is thuS that an introduction of a new
bank into the most distant of our villages; places the business
of that village within the influence of the money power in
England. It is thus thatevery'new debt which we contract
in that country, seriously affects our own currency,.and ex-
tends over the pursuits of our citizens its powerful influence.
We cannot escape from this by snaking new banks, great or
small, State or National. The same chains which bind those
now existing in the centre of this system of paper credits,
must equally fetter every similar institution we create: It
is only by the extent to which this system has been-pushed
of late, that we have been made fully aware of its irresistible
tendency to subject our own banks and currency to a vast
controlling power in a foreign land, and it adds a new isegu-
meat to those which • illustrate their precarious situation.
Endangered in-the first place by their own mismanagement,
and again by the conduct of every institution which connects
them with the centre of trade in our own country, they are
yet subjected beyond all this, to the effect of whatever mea-
sures policy, necessity, or caprice, may induce those whO
control the credits of England to resort to. I mean not to
comment upon these measures present or past, and much
less to discourage the prosecution.of fair commercial dealing
between the two countries, based on reciprocal benefits ; but
it having now been made manifest that the power of inflict-
ing these and similar injuries, is, by the resistless law of a
credit currency and credit trade, equally capable of extending
their consequences throUgh all the ramifications of our bank-
ing system, and by that means indirectly obtaining, particu-
larly when our banks are used as depositories of the public
moneys, a dangerous political influence in the United States,
I have deemed it my duty to bring the subject to your no-
tice, and ask for your serious consideration.
Is an argument required beyond the exposition of these
facts, to show the impropriety of using our banking institu-
tions as depositories of the public money ? 'Can we venture
not only to encounter the risk of their individual and mutual
mismanagement, but, at the same time, to place our foreign
and domestic policy entirely under the control of a foreign
moneyed interest? To do so is to impair the independence
of our Government, as the present credit system' has already
impaired the independence. of ouebanks. It is to submit all
its important operations, whether of peace or war, to be con-
trolled or thwarted at first by 'our own banks, and then by a
power abroad greater than: themselves. I cannot bring my-
self to depict the humiliation to which this Government and
people might be sooner or later'reduced, if the means for
defending their rights are fo be made dependant upon those
who may have the most powerful of motivss to impair them.
Nor is it only in reference to the effect of this state of
things on the independence of our Government or of our
banks, that the Subject presents itself for consideration ; it
is to be viewed also in its relations to the general trade of
our country. The time is not long past when a deficiency of
foreign crops was thought to afford a profitable market for
the surplus of our industry; but now we -await with feverish
anxiety the news of the English harvest, not so much from
motives of commendable sympathy, but fearful lest its anti-
cipated failure should narrow the field of credit there. Does
not this speak volumes to the patriot? Can a system be be-.
neficent, wise, or just, which creates greater anxiety for in-
terests dependent on foreign credit, than for the general
prosperity of our own country, and the profitable exporta-
tion of the surplus produce of our labour ?
The circumstances to which I have thus adverted appear
to me to afford weighty reasons, developed by late events, to
be added to those which I have on former occasions offered,
when submitting to your better knowledge and discernment
the propriety of separating the custody of the public money
from banking institutions. Nor has any thing occurred to
lessen, in my opinion, the force of what has been heretofore
urged. The only ground on which that custody can be de-
sired by the banks, is the prpfitable use which they may make
of the money. Such use would be regarded in individuals
as a breach of trust, or a crime of great magnitude, and yet
it may be reasonably doubted whether, first and last, it is
not attended with more mischievous consequences when per-
mitted to the fohner than to the latter. The practice of
permitting the public money to be used by its keepers as
here, is believed to be peculiar to this country, and to exist
scarcely any where else. To procure it here improper influ-
ences are appealed to; unwise connections are established
between the government and vast numbers of powerful
state institutions ; other motives than the public good are
brought to bear both to the executive and legislative de-
partments,
arean fordsaed
eilfis.h
Ictonisibminaadtiamtihs,-e leading to
o f banking special
instituions and their stockholders throughout the union, to
legislation,
use their exertions for the increase of taxation and the accu-
mulation of a surplus revenue; and, while an excuse is
afforded, the means are furnished for those excessive issues
which lead to extravagant trading and speculation, and are
the forerunners of a vast debt abroad, and a suspension of
the bank at home.
Impressed, therefore, is I am, with the propriety of the
funds of the government being withdrawn from the private
use of either banks or individuals, and. the public money
kept by duly appointed public ,agents ; and believing, as I
do, that such also is the judgment which discussion, reflec-
tion, and experience have produced on the public mind, I
leave the subject with you. It is, at all events, essential to
the interests of the community and the business of the
government, that a decision should be made- -
* * _ * * . # # - .-*

M. VAN BIJRN

Mr. Macready will make his debut at Drury-lane as
Mirebeth, which is to be revived with new scenery, &C.

TOWN COUNCIL PROCEEDIrrS7

A. special meeting of the council was held or Wednesday,
for the discussion of several subjects the coisideratiou of
which had been adjourned.
PURCHASE OF THE BIRKENHEAD PROPERTY.
The MAYOR said that the first business ef the council
would be the proposed purchase of the.Birke4ead property.
The deputy town-clerk would read the minas of the last
council on the subject.
This having been done,
Mr. CURRIE moved the confirmation of therecommenda-,
tion of the Finance Committee, for the purchase of the above
named property, characterising the proposed Pirchaie as one
that was exceedingly judicious and desirable.'
Mr. PLATT seconded the motion, thinking taat the matter
was one of immense importance to the corporation, as well
as calculated to advance the interests of the community at
large. . •
Mr. Alderman Strinr, was opposed to the-ptrchase of the
property, and thought that not many years weed elapse be-
fore the corporation would have to regret. their purchases on
the other side of the water: He thought it his duty to state
this but he would not take up the time of the council in what
he knew would be useless opposition:
Mr. MELLOR opposed the motion on this ground—The
proposed purchase would cost £65,000, which, at two per
cent. per annum,. would be £l3OO a year '• and whatever
benefit might result from the purchase hereafter, the present
inhabitants of the town would be deprived yearly of the use
of that sum. . .
Mr. BLACKBURN observed that Mr. Mellor was wrong in
his calculation. There would' not be a lots'of two per' ent.
on the whole amount of, purchase money, but only on that
part of the property which did not yield any return. There
would, therefore, be no need of a sinking fund, except for
one-fourth part of the purchase::' If he was wrong the town-
clerk would correct him.
The motion was then adopted without a division.

MR. °KILL'S SALARY.
Mr. SHIM. said the motion he was about to make was
matter of simple right, which he believed was vested in every
member of the council. Any one there might do it, and no
one, he believed, had any right to make any
.opposition. lie
moved, therefore, that the Treasurer be ordered to make a
return of all monies paid out of the Corporation fund to Mr.
Charles Okill, since his first connexion with the Corporation,
in 1815, up to the present time, distinguishing the amounts
paid as a fixed salary, from those paid for special and distinct.
services ; and stating, as accurately as possible, the particu-
lar service for which the different sums were paid, with the
dates of the order of council 'relating to each sum, and that
the return be sent to each member of the council as soon as
practicable, but not later than the summons for the next
meeting of the council. . .