, 1844-12-21

der the existing financial SYSTEM resting upon the act of l1o9,
and the resolution of lSI6-the currency of the country has at
tanned a state of perfect S%oundncsS: and the rates OF exchange
between different parts of the union, which. IN 1911, denoted:
by their enormous amount, the great depreciation, a"o IN ie
worthlessness, Of the currency in most OF the State-are no"
reduced to little more than the mere expense OF transporting
specie from place to place, and the risk incidental to the opera
ton. In a new country like that of the United States-where
so many Inducements are held out for speculation-the dePoS-
itories of the surplus revenue, consisting OF banks OF any ots-
criptiOn. when it reaches any considerable amount, raiuiIt ne
closest vigilance on the part of the government. All banking
institutions, under whatever denomination they may pass:
governed by an almost exclusive regard TO the interest Oh INC
stockholders. The interest consists in the augmentation Oh
profits, in the form of dividends, and a large surplus revenue
entrusted to their custody is but too apt to lead TO excessive
loans and to cXtravagantly large issues OF paper: 5 g
sary consequence, prices are nominaiiy Increased, ana ue spec
ulative mania every where seizes upon the public mind a
fictitious state Of prosperity for 4 season exists; ana, III te ian-
guage of the day, money becomes plenty.
Contracts ara entered into by individuals, resting OIL inns uh-
substantial state of things, but the de!usion speedily passes a.
way, and the country is overun by an Indebtedness 50 ~'lgmy
as 10 OvcFwhclm many, and tn visit every department vi nut
try with great and ruinouS embarrassment. The greatest wig,
lance becomes necessary on the part of government 10 s.anu
a Riii n n" Is i naarr I n%% that the iasors Of the government will
revenues shall be regarded a. additions tn its banking caPhai,
or as the foundation Of an enlarged circulation. The govern
nenf, through its revenue, has, AT all times, an important part
10 perform IN connexinn with the currency; and II ereAtS {
ponds upon IFS vigilance and care, whether the country be IN,
rolred in embsrra>snonts similar TO those which ii has h"
recently 10 encounter; or aided by the acIon of the treasury,
shall be preserved in a sound and healthy condition,
ms doctrine does in no wav Conflict W o. the exercise OF a
>olhl 'I>ci'ni'na''onin the selection of the articles tn be taxed,
VIZ - me puDIlC veal, Oub IL ii uHes S"S-
., !" '"t s1slative mind. II leaves the range Of selection
"ll'"nncd. and such selection should alw avs be made win an
nni"n- 81 separate and independent state, as pttrlotic ielSsla-
tirr "1l not fail in consulting the interests OF The parts, To a
dept such course as will be best calculated to advance the mar
hlcns u me whole, and thus ensure that perlnah.hcS ID thf
p"hcy Of the government without which all efforts To atanncc
the public prosperity are vain and fnntless. This great and
can do no more than recommend the general principles which
should govern in its execution.
The dangers to be guarded against are greatly augmented
VI 100 I4rpP 4 SuIUllS of revenue. " hen that rDi gFGlt-
iy exceeds IN amount what shall be required by a wise and
prudent forecast to meet unforeseen contingencies, the leglSla-
ture itself may come 10 lee seized with a disposition to indulge
IN eNtravagant appropriations 20 objects, many of which may,
and most probably would be found to conflict with the constitu,
non. A fancicd eNpedicncy is elevated above constitutional
authority, and a reckless and wastcful extravaganza but TOO
certainly follows.
The important power of taxation, which, when exercised III
It's most restricted form, is abandoned on labor and pro'ucton,
IS reSored to under various pretexts, for purposes having no al
unity TO the motives which dictated its grant, and the cxtrava-
Gahce OF government stimulates individual cxtIAvasance, uu-
til the spirit Of a wild and ill-reguated speculation involves
one and all in its unfortunate results. In view Of such fatal
consequences, it may be laid down as an axiom, founded in
moral and political truth, that 10 greater taxes should be i'm
posed than are necessary for an economical administrator OF
the government, and that whatever exists beyond, should be
reduced or modified.
Ircfer you to the report of the secretary Of Wsr, for an ex-
hibiion of the condition of the army; and recommend to you
As well worthy your best consideration, many of the sugges-
tons If contains. The secretary in no degree eXaggerates the
great importace of pressing forward. without delay, inthe work
of erecting and finishing the Notifications, towards placing our
cities roadsides in estate of security aginst the hazards Of hos
tile attack within the last four years; but considering the new
elements winch nave been, OF lae years, employed III tf pro-
pelling Of ships and the formidable implements of destruction
which have been brought into service, we cannot be too active
or vigilant in prepareihg and perfCcting the means Of defence.
l refer you, also, to the Indian tribes within our jurisdiction.
The executive has abdted no efforts in carrying into effect he
well established policy Of the government, which contemplates
a removal of all the tribes residing within the limits OF the
several states. beyond those limits and tits now enabled 10 con-
graduate the country at the prospect Of an early contamination
of this object. Many Of the tribes have already made great
progress in the arts of civilized life: and through the operation
of the schools established among them, aided by the pious men
of various religious denominations-who devote themselves to
the task of their improvement we may fondly hope that the re-
mains of the formidable tribes which were cncc masters Of this
country, will. in their transition from the savage state, To a
condition of refinement and cultivation, add another bright
trophy to adorn the labors of a well directed philanthropy.
In consequence of the difficulties which have existed in the
way of securing titles for the necessary grounds: operations
have not yet been commenced towards the establishment Of
the Navy Yard at Memphis. So soon as the title is perfected,
no further delay will be permitted TO intervene. 1t is well
worthy of your consideration, whether congress should not di
rect the establishment of a rope-walk, in connection with the
Navy Yard, AS a measure not onlyof economy put as highly
useful and necessary. The only establishment of the sort
now connected with the service is located at Boston: and the
of a similar establishment, convenient TO the hemp
growing region, must be apparent TO all.
The report OF the Secretary presents other matters toi
your consideration of an important character in connection
with The service.
In referring you to the accompanying report of the post
IN 'ster general, 1t affords me continued cause of qualification
TO be able to advert to the fact, that the affairs of the depart
'nent, Tor the last four years, have been so conducted, as
rom MS own unslded resources, TO meet IFS large expeIdi-
lures. On my coming into office, Il debt of nearly $780,
100 existc,. Hglnst the Department., which congress dis
h. RE! nv an appropriation from the treasury. The de-
p .r,mcnt on The 4th of March next, will e found, under
he M engagement OF the present efficient head, free from debt
1r em:arr5 ssment. which could only have been done by the
and practice of the greatest vigilance and econ
my. The laws have contemplated, throughout, that the
should be selrsustained, but il may become ne
,ess4ry, with the wisest regard to the public interests, to in
reduce amendments and alterations in the system. There
$ a strong desire manifested in many quarters, so TO alter
he tariff of letter postage, as to reduce the amount of FAX at