The New York Herald Newspaper, December 6, 1848, Page 2

— * tion as to abolish slavery within its limits; and the migrants from the older siready preparing te seek regions. dissimilarity of the domestic institutions in t States prevent us from providing for them suitable governments’ These institutions existed at the adoption of the constitution, but the obstacles which ‘they ti terpored were overcome by that spirit of compromise which is now invoked In a conflict of opinions or of interests, real or imaginary, between Eifferent sections of our country, neither can justly demand al! which it might desire to obtain. Each, in | the tree spirit of our institutions, should concede | something to the other Our gallant forces in the Mexi triotiem and up ; there possessions as an indemnity for our j mands against Mexico, were composed of citizens who belenged to no one State or section of our Union They were men from slavebolding and non-siaveholding Stater. from the North and the South, from the East and the West They were all companions. and fellow. citizens of the same common country, en- gaged in the same common cause. When prosecuting that war. they were brethren and friends, and shared | alike with each other common toils, dangers. and suf- ferings, Now, when their work is ended, when peace is restored. and they return again to their homes, put | off the habiliments of war, take their places in society, and resume their pursuits in civil life, surely a spirit ofharmony and concession, and of equal regard for the rights of ell and of all sections of the Union ought | to prevail in providing governments for the acquired | territories—the fruits of their common service. The whole people of the United States and of every Sta'e eontributed to defray the expenses of that war; and it would not be just for anyone section to exclude an- other from all participation in the acquired territory. This would not be in consonance with the just system of government which the framers of the constitution adopted. The question is b lieved to berather abstract than practical, whether slavery ever can or would exist in any portion of the acquired territory. even if it were left to the option of the slaveholding States themselves. From the nature of the climate and productions, in much the larger portion of it, itis certain it could never exist; and in the remainder, the probabilities are it would not. But however this may be, the question, involving, as it does, a principle of equality of rights of | the separate and several States, as equal co-partners in the confederacy, should not be disregarded. In organizing governments over these territories. no duty imposed on Congrese by the constitution requ'res that they should legislate on the subject of slavery, while their power to do so is not only seriously ques- tioned, but denied by many of the soundest expound- ers of that instrument. Whether Congress shall legis- late or not, the people of the acquired territories. when astembled in convention to form State constitutions, will poesess the sole and exclusive power to determine for themselves whether slavery shall or shall not exist witbin their limits. If Congress shall abstain from in- terfering with the question, the people of these terri- tories will be left free to adjust itas they may think proper when they apply for admission as States into the Union. No enactment of Congress could restrain the people of any of the sovereign States of the Union, old or new, north or south, slave-holding or non-slave- holding. from determining the character of their own domestic institutions as they may deem wise and pro- per. Any andall the States?possess this right, and Congress cannot deprive them of it. The people of Georgia might, if they chose, so alter their constitu- war, by whose pa- — ed people of Vermont might so alter their constitution as to admit slavery within its limits. Both States would possess the right; though, as all know, it is not pro- hable that either would exert it. It i: fortunate for the peace and harmony of the Union that this question isin its nature temporary, and can only continue for the brief period which will intervene before California and New Mexico may be admitted as States into the Union. Frou the tide of population now flowing into them, it is highly proba- dle that this will soon occur. Considering the several States and the citizens of the reveral States as equals, and entitled to equal rights under the constitution. if this were an original question, it might well be insisted on that the princi- le of non-interference is the true doctrine, and that ‘ongress could not, inthe absence of any express grant of power, interfere with their relative rights, — Upon a great emergency, however. and under mena- cing dangers to the Union, the Missouri compromise line in respect to slavery was adopted. ‘The same line was extended further west in the acquisition of Texas. After an acquiescence of nearly thirty years in the principle of compromise recognized and established by there acts. and to avoid the danger to the Union which might follow if it were now disregardea, I have heretofore expressed the opinion that that line of com- promise should be extended on the parallel of thirty- six degrees thirty minutes from the western boundary of Texas, where it now terminates, to the Pacific ocean. This is the middle ground of compromise, upon which the different sections of the Union may meet, as they have heretofore met. If this be done, it is confidently believed a large majority of the people of every rection of the country, however widely their abstract opiniens on the subject of slavery may differ, “main to be paid of these cla ticle of the treaty of peace, friendship, limite and set- tlement, with the republic of Mexico, and of the act of July the twenty. ninth, 1848, claims of our citizens which bad been “already liquidated and decided ag t the Mexico with the in! thereon, to sand eight hundred and thirty two dollars and fifty. one cents, have been liquidated and paid, Theré re- ) Seventy-four thousand dollars and twenty-six ene hundred and ninety-two cents. Congress at its last session having made no provi- slow for executing the fifteenth article of the ti by which the United States assume to mal ep for the “ unliquidated claims’ of our citizens against Mexico, to “an amount not wud @ quarter millions of éollars,”’ the recommended to your favorable consid The exchange of ratifications of the treaty with Mexico took. place on the 30th of May, 1848, Within one year after that time, the commissioner and sur- veyor which each government stipulates to appoint, are required to moet “at the port of San Diego, an proceed to run and mark the said boundary in its whole course to the mouth of the Rio Bravo del Norte.” It will be seen from this provision, that the period within which a commissioner and surveyor of the re- spective governments are to meet at Sam Diego, will expire on the 30th of May, 1849. Congress, at the close of its last session, made an appropriation for “ the ex- penres of running and marking the boundary line” between the two countries, but did not fix the amount of salary which should be paid to the commissioner and surveyor to be appointed on the part of the United States. It is desirable that the amount of compensa- tion which they shall receive should be prescribed by law,and not ret as at present, to Executive discretion. Measures were adopted, at the earliest practicable period, to. organize the “Territorial government of Oregon,” as authorized by the act of the fourteenth of Avgust last. The Governor and Marshal of the Ter- ritery, accompanied by a small military escort, left t! fiontier of Missouri in September last. and took the Southern route, by the way of Santa Fe and the river Gila, to California, with the intention of pr ding thence in one of our vessels of war, to their ina- tion. The Governor was fully advised of the great importance of his early arrival in the country, and it is confidently believed he may reach Oregon in the latter part of the present month, or early in the next. The other officers for the Territory have proceeded by fea. In the month of May last, 1 communicated informa- tionto Congress that an Indian war had broken out in Oregon, and recommended that to raise an adequate number of voluntee: without delay to the assistance of our fellow citize: in that territory. The authority to raise such a force not having been granted by Congress, as soon as their services could be dispenred with in Mexico, orders were iesued to the regiment of mounted riflemen to proceed to Jefferson barracks, in Missouri, and to pre- pare to march to Oregon as soon as the necessary pro- vision could be made. Shortly before it was ready to march, it was arrested by the provision of the act pass- ed by Congress on the last day of the last session, which directed that all the non-commissioned officers, musicians, and privates of that regiment, who had been in rervice in Mexico, should, upon thelr applica- tion, be entitled to be discharged. The effect of this provision was to disband the rank and file of the regi- ment; and before their places could be filled by recruits the season had ro far advanced that it was impracti- pers for,it to proceed until the opening of the next sprig. In the month of October last, the accompanying communication was reseived from the governor of the temporary government of Oregon, giving information of the continuance of the Indian disturbances, d of the destitution and defenceless condition of t! nha- bitants. Orders were immediately transmitted to the commander of oursquadron in the Pacific, to despatch to their assistance a part of the maval forces on that station, to furnish them with arms and ammunition, and to continue to give them such aid and protection as the navy could afford, until the army could reach the country. It ie the policy of humanity, and one which has ways been ae ty the United Sta’ ‘to cull the good will of the aboriginal tribes of this continent, and te restrain them from making war, and indulging in excesses, by mild means, rather than by force. That this could heve been done with the tribesin Oregon, had that territory been brought under the government of our laws at an earlier period, and had suitable measures been adopted by Congress, such as now exist in our intercourse with the other Indian tribes within our limits, cannot be doubted. Indeed, the immediate and only cause of the existing hostility of tke Indians of Oregon, is represented to have been the long delay of the United States in making to them some trifling compensation, in such articles as they wanted, for the country now occupied by our emi- grants, which the Indians claimed, and over which they formerly roamed. This compensation had been romised to them by the temporary government estab- ished im Oregon, but its fulfilment had been postponed frem time to time, for nearly two years, whilst those who nade it had been anxiously waiting for Congress to establish a territorial government over the country. The Indians became at length distrustful of their good faith. and rought redress by plunder and massacre, would cheerfully and patriotically acquiesce in it, and peace and harmony would again fill our bordera The restriction north of the line was only yielded to in the case of Missouri and Texas upon a principle of compromise, made necessary for the sake of preserv- ET es harmony, and possibly the existence of the Tnion It was upon these considerations, that at the close of your last session, I gave my sanction to the princi- ple of the Misrouri compromise line. by approving and signing the bill to establish “the territorial govern- ment of Oregon.’’ From a sincere desire to preserve | the harmony ef the Union, and in deference for the acts of my predecessors, I felt constrained to yield my acquiescence to the extent to which they had gone in | compromising this delicate and dangerous question.— But if Congress shall now reverse the decison by which t! Mirsouri compromise was effected. and shall propore to extend the restriction over the whole terri- tory, south as well as north of the parallel of thirty six degrees thirty minutes, it will cease to be a compro- mise. and must be regarded as an original question. It Congress, instead of observing the course of non- interference, leaving the adoption of theirown domes- tic institutions to the people who may inhabit these territories; or if, inetead of extending the Missouri compromise line to the Pacific. shall prefer to submit the legal and eonstitutional questions which may arise to the decision of the judicial tribunals. as was proposed in a bill which passed the Senate at your last sersion, an adjustment may be effected in this mode. If the whole subject be referred to the judiciary. all parts of the Union should cheerfully acquiesce in the final de- cision of the tribunal created by the constitution for the rettlethent cf all questions which may arise under the constitution, treaties, and laws of the United States. Congrees is earnestly invoked, for the sake of the Union, its harmony, and our continued prosperity, as @ vation, to adjust, at its present session, this, the only dangerous ition which lies in our path—if not in some one of the modes suggested, in some other which may be ratiefactory In anticipation the establishment of regular governments over the acquired territories, a joint com- misrion af officers ofthe army snd mavy has been or- dered to proceed to the coast of California and Ore- gon, for the purpore of making reconnoissances and @ Teport as to the proper sites fer the erection of fortifi- cations or other defensive works on land, and of suit- able situations for naval stations. The information which =_¥ expected fromja scientific and skilfal examination of the whole face of the coast will be emi- tly useful to Congress, when they come to consider propriety of making appropriations for these great national objects. Proper defences on land will be ne- censary for the recurity and protection of siona; and the establishment of navy yards, and a dock for the repair and construction of vessels, will be im- portant alike to our navy and commercial marine. _Without such establishmants, every vessel. whether of ‘the nervy or ofthe merehant service. requiring repair, must, at great expense. come round Cape Horn to one of our Atlantic yards for that purpose. With such es- tablishmente, vessels. it is believed, may be built or re- paired as cheaply in California as upon the Atisatic oast. They would give employment to many of our ec ent iting sbip-builders and mechanics, and great}; faciiftate and enlarge our commerce in the Paciic. As it is ascertained that mines of gold. silver, cop- per, and quickeilver exist in New Mexico and Califor- nia. and that nearly all the lands where they are found belong to the United States, it is deemed important to the public interests that provision be made for a geo- logical and mineralcgical examination of these regions. Measures theuld be adopted to preserve the mineral landr, etpecially such a8 contain the precious metals, for the ure of the United States: or if brought into market, to separate them from the farming lands, ond dirpose of them in such manner as to secur turn of money to the trearury, and at the seme time lead to the development of their wealth by individual proprietors and purchasers. To do this, it will be me- cowrary to provide for an immediate survey and loca- tion ef the lots If Congress should deem it proper to dispore of the mineral lands, they should be sold in small quantities. and rt a fixed minimum price. \8' offices be au- din Mexico and Cali- fornia. and provision made for eurveying and bringing the public lands into market at the earliest practicable tod. In disporing of these lands, | recommend that right of pre-emption be secured, and liberal grants made to the early emigrants who have settled or may settle upow them, It will be important to extend our revenue laws over there territories, and especially over California, at an early period. There is already a considerable commerce with California; and until ports of entry shall be establiehed and collectors appointed. no re- venue can be received. If there and other necessary and proper mearures be adopted for the development of the wealth and re. sources of New Mexico and California, and regular territorial governments be established over them, euch will probably be the rapid enlargement of our com- merce and Bavigation and such the addition to the national wealth, that the present generation may live to witners the controlling commercial and monetary power of the world traveferred from London and other Furopean emporiums to the city of New York. The apprehensions which were entertained by some of our statesmen, in the earlier periods of the govern- ment, that our system war incapable of operating with rufficient energy and success over largely extended territorial Hmifs, and that if this were attempted, it Would fall to pieces by its own weakness, have been dirsipated by our experience. By the division of power between the States and the federal government, the latter is found to operate with as much energy in the extremes asin the centre. It is as efficient in the re- Mmotert of the thirty States which now compose the be aI LF. ee in La mop pom Ne ay! formed ustitution. In may we joubted, whether if our present pofulation had been confined within the limite of the original thirteen States, the tendencies to ‘ntralization and consolidation would taining a) the enteetion which finally led to the present difficulties, A few thousand dollars in suitable presente, as a compensa- tion for the country which had been taken possession of by cur citizens. would have satisfied the Indians, perly distributed. it is confidently believed, would soon restore quiet. Im this Indian war our fellow-citizens of Oregon have been compelled to take the field in their own defence, have performed valuable military services, and been subjec*cd td expens fallen heavily upon them. Justice demands that pro- vision should be made by Congiess to compensate them fer their services, and to refund to them the ne- | ceasary expenses which they have incurred. I repeat the recommendation heretofore made to Congress, that provision be made for the appointment of a suitable number of Indi: ents to reside among the tribes of Oregon, and that a small sum be appro- priated toenable these agents to cultivate friendiy re- Jations with them. If this be done, the presence of a small military force will be all that is necessary to keep them in check, and preserve peaci Irecommend that similar provision be made as re- gards the tribes inhabiting northern Texas, New Mex- ico, California, and the extensive region lying between our settiements in Missouri and these possessions, as the most effective means of preserving peace upon our borders, and within the recently acquired tories. The Secretary of the Traasury will present in his | annual report,a highly satisfactory statement of the | condition of the finances. | The imports for the fiscal year, ending on the thir- tieth of June last, were of the value of one hundred | and fifty-four million, nine hundred and seventy-se- | ven thousand, eight hundred and seventy-six dollars; of which the amount exported was twenty-one mil- lion one hundred and twenty-eight thousand and ten dollars, leaving one hundred and thirty-three million eight hundred and forty-nine thousand eight hundred aad eixty-eix dollars in the country tor domestic use. The value of the exports for the same iod wasone | Lapdred and fifty-four million thirty-two thousand one hundred and thirty-one dollars, consisting of do- meetic productions, amounting to one hundred and thirty-two million nine hundred and four thousand one hundred and twenty one dollars, and twenty-one miliion one hundred and twenty-eight thousand and ten dollars of foreign articles. The receipt into the treasury, fer the same period, exclusive of loans, amounted to thirty-five million four hundred and thirty-six thousand seven hundred and fifty dollars and fifty-nine cents; of which there was ved from Larag ee thirty-one million seven hundred nd fifty-seven thousand and seventy dollars and ninety-six cents; from sales of public lands, three million three hundred and twenty-eight thousand six hundred and forty-two dollars and fifty-six cents; and from miscellaneous and incidental sources, three 03 d fi ne thousand and thirty-seven dol- It will be perceived that the revenue from customs, for the last fiecal year, exceeded, by seven hundred and fifty-seven thousand and seventy dollars and ninety-six cents, the estimate of the Secretary of the Treasury, in his last apnual report; and that the ag- egate receipts during the same period, from customs, lands, amd miscellaneous sources, also exceeded the estimate, by the sum of five hundred and thirty-six thousand seven hundred and fifty dollars and fifty- nine cents—indicating, however, a very near approach | in the estimate to the actual result, ‘The expenditures during the fiscal year ending on the thirtieth of June last, including those for the war, and exclusive of payments of Principal and interest for the public debt, were forty-two million eight hundred and eleven thousand nine hundred and seventy dollarsand three cents. It is estimated that the receipts into the treasury for the fiecal year ending on the thirtieth of June. 1849, in- cluding the balance in the tressury en the first of Jaly last, will amount to the sum of fifty-seven million forty-eight thourand nine hundred and sixty-nine | dollars and ninety cents; of which thirty-two mil- lions of dollare. it is estimat+ 4, will be derived from cus- tome ; three millions of dollars from the sales of the public lands; and one million two hundred thousand dollars from cellaneous avd incidental sources, in- cluding the loan, and the amount | remivm — the the treasury om account of the sales of arms | and yersels, and other public property, rendered un- necessary for the use of the government by the termi. nation of the wer; and twenty million six hi and ninety-five th 4 four hundred and dollars and thirty cents from loa! including treasury notes funded the balance in the treasury on make the sum estimated. xpenditures for the same period, including the payment en account of the principal and nd the principal and in- t due to Mexico on the thir- tieth of May next, and other expenditures growin; out of the war, te be paid during the present year, wi amount, including the reimbursement of Treasury notes, to the sum of fifty-four million one hundred and ninety-five thousand two hundred d seventy- five dollars and six cents, leaving an estimated balance inthe Treasury on the first of July 1849, of two mil- lion eight hundred and fifty-three thousand six hun- dred and ninety. four dollars and eighty-four cents. The Secretary of the Treasury will present, as re- quired by law, the estimate of the receipts and expen- ditures forthe next fiseal year. The expenditures as estimated for that year are thirty-three million two hundred and thirteen thourand one hundred and fifty-two dollars and reventy-three cents, includin; three million eeven hundred and by Ft aoe thou. je firet of July last, avd have Neath the war. Asmall amount pro. | which have | of June, 1846, The total revenue realized from the commencement of its operation, on the first of Decem- ber, 1646, until the close of the last quarter, on the thirtieth of September last, being twenty. two months was fifty-six million six hundred and fifty-four thou- five hundred and sixty-three dollarsand seventy- se ageing he much larger sum thav was ever before reeeived ym duties during any equal period under the tariff acts 1824, 1828, 1832, and 1542. Whilst by the repeal of highly protecti probibltory duties the revenue bas been increased, the the people have been diminished. ‘They hi relieved from the beavy amounts with which they were burdened under former laws in the form of increased prices or bounties paid to favored classes and pursuits. The predictions which were made, that the tariff a of 1846 would reduce the amount of revenue below that collected under the act of 1842, and would pros- trate the business and destroy the prosperity of the country, have not been verified. With an increased and increasing revenue, the finances are in a highly flourishing condition, Agriculture, commerce, and navigation, are prosperous; the prices of manufactur- ed fabrics, and ef other products, are much less injuri- ously afleeted than was to have been anticipated, frem the unprecedented revulsions which, during the last and the present Page have overwhelmed the industry and paralyzed the credit and commerce of 80 many great and enlightened nations of Europe. Severe commercial revulsions abroad have always heretofore, operated to depress, and often to affect di- eastrously, almost —— branch of American industry. The temporary depression ofa portion of our manufac- turing intererts is the effect of foreign causes, and is far leas severe than has prevailed on all former similiar occasions, It is believed that, looking to the great aggregate of all ourinterests, the whole country was never more prosperous than at the present period, and never more rapidly advancing in wealth and population. Neither the foreign warin which we have been involved, nor the loans which bave absorbed so large a portion of our ercial revulsion in G t Britain nor the paralysis of credit and commerce throughout Europe in 1848, ha eted injuriously to any considerable extent any o! great interests of the country, or arrested our onward march to great- ness, wealth, and power, Had the disturbances in Europe not occurred, our commerce would undoubtedly have been still more ex- tended. and would have added still more to the na- tional wealth and public prosperty. But notwith. standing these disturbances, the operations of the revenue system, established by the tariff act of 1546, have been s0 lly beneficial to the government and the busi ee country, that nochange in its visions is demanded by a wise public policy, and is recommended. ‘The operatione of the constitutional treasury estab- lished by the act of sixth of August, 1846, in the receipt, custody, and disbursement of the public money, have continued te be successful. Under this system the public finances have been carried through a foreign war, involving the necessity of loans and ex- traerdinary expenditures, and requiring distant trans- fers and disbursements, without embarrassment, and no loss has occurred of any of the public money de- posited under its provisions. Whilst it has proved to ‘de safe and useful to the government, its effects have been most beneficial upon the business of the country. It bas tended powerfully to secure an exemption from that infiation and fluctuation of the paper currency 40 injurious to domestic industry, and rendering 80 uncertain the rewards of labor, and it is believed has largely contributed to preserve the whole country from a serious commercial revulsion, such as often oc- curred under the Lank deposite system. In the year 1847 there was a revulsion in the business of Great Britain of great extent and intensity, which was fol- lowed by failures in that kingdom unprecedented in number and amount of losses. This is believed to be P no} the first instance when such disastrous bankru cecwring in ® country with which we have such e tensive commerce, produced little : so injurious eff mai our upon our trade or currency. V affected in our money mark industry were still prosperou progressive During the present year. nearly the whole continent of Ewrope has been conyulsed by civil war and revolu tions, attended umerous bankrupteies, by an u ness an. 5 precedented | in their public securities, and an most univer «| paralysis of commerce and industry ; and yet, al h our trade and the prices of our pro- ducts must somewhat unfavorably affected by there ce aye eecaped a revulsion, our mo- ney marke vely easy, and public and pri- vate credit | and improved, It is cont ed that we have been saved from their effec utary operation of the con- stitutional treasury s certain, that if the twenty- four millions of specie imported into the country dur- ing the fiscal year ending on the 30th of June, 1847, had gone into the banks, as toa great extent it must have done, it would,in the absence of this system, have been made the basis of augmented bank paper issues, probably to an amount not less than sixty or seventy millions of dollars, producing, as an inevitable conrequence of an inflated currency, extravagant rices fora time, and wild speculation, which must | Bave been followed, om the reflux to Europe, the suo« | ceeding year, of so much of that specie, hy the pros- tration of the business of ths country, the suspension of the banks, and most extensive bankruptcies. Oo- curring, 88 this would have done, at a period when the country was engaged in a foreign war; when consider- able loans of specie were required for distant disburse- @ banks, the fis: ents of the ment, and the depositories of its money, were he ublic credit murt have sunk, aud many ions of dollars, as was the case during the war of 1812, must have been sacrifited in discounts upon Joans, and upon the depreciated paper currency which the government would have been compelled to use. Under the operations of the constitutional treasury, not a dollar has been lost by the depreciation of the currency. The loans required to prosecute the war with Mexico were negotiated by the Secretary of the Treasury above par, realizing a latge premium to the government. restraining effect of the system upon the tendencies to excessive pa} ues by banks bas saved the government from heavy losses, and thousands of our business men from bankruptcy and ruin. The wisdom of the system has been tested, by the experience of the last two'Y@Rrs; and it is the dic- tate of seund policy that it should remain undis- turbed. The modifications in some of the details of this measure, involving none of its essential princi- ples, heretofore recommended, are again presented for your favorable consideration. In my mersege of the sixth of July last, transmitting to Congress the ratified treaty of peace with Mexico, [ recommended the adoption of measures for the speedy payment of the public debt. In reiterating that re- commendation, I refer you to the considerations pre- feuted in that messege in its support. The public debt, including that authorized to be negotiated, in purruance of existing laws, and including treasury ounted at that ti: to sixty-five million jundred and seventy-eight thousand four hun- dred and fifty dollars and forty-one cents. Funded stock ofthe United States, smounting to about Lalf a million of dollars, has been purchased, as authorized by law, since that period, and the public debt bas thus been reduced; the details of which will be presented in the annual report of the Secretary of the Trearury. The estimates of expenditures for the next fiscal ear, submitted by the Secretary of the Treasury, it believed will be ample for all Farmers A et be If the appropriations made by Congress not exceed the amount estimated, the means in the treasury will be sufficient to defray allthe expenses of the gorvern- ment; to pay next instalment of three millions of dollars to Mexico, which will fall due on the thirtieth of May next; and still a considerable surplus will re- main, which should be applied to tre farther of the public stock and reduction ofthe debt. Should a | mi enlarged appropriations be made, the con- sequence wil be to pone “the ps it of the debt. Though our debt, as compared with that of most other nations. is small, it is our true policy, and in bar- mony with the genius of our institutions, that we should present to the world the rare spectacle of a great republic, Dg vast resources and wealth. wholly exempt from public indebtedness. This would add still more to our strength, and give to us a stil) more commanding pesition among the nations of the earth. The public expenditures should be economical, and be confined to such necessary objects as are clearly within the powers of Congress. All such as sre net abrolutely demanded should be poe: rg and the payment of the public debt at the earliest practicable perce should be # cardinal principle of our publio oy. For the reason assigned in last annual I repeat the recommendation that a branch of mint of the United States be established at the city of New Yerk, The importance of this measure is greatly increased by the acquisition of the rich mines of the precious metals in New Mexico and California, and especially in the latter. Jrepeat the recommendation, heretofore made, in faver of the graduation and reduction of the price of such of the public lands as have been lo: the market, and have remained unsold, and in favor of extending the rights of pre-emption to actual settlers on the unsurveyed as well as the surveyed lands. ‘The condition and operatio: the army, state of other branches of the public servi the supervision of the War Department, are satisfac- rorily presented in the accompanying report of the Secretary of War. On the return of peace, our forces were withdrawn from Mexico, and the volunteers and that portion of the regular army engaged for the war were disbanded. Orders hi been issued for stationing the forces ofour permanent esteblishment at various positions in our extended country, where ti may be uired. or ‘he remoteness of some of these positions, the have not yet reached their destination. ling the extension of the limits of our the forces required in the new territories, ly believed that our present military establishment is sufficient for all exigencies, so long as our peaceful relations remaim undisturbed. Of the amount of military contributions collected in Mexico, the sum of seven hundred and sixty-nine thou- rand six hundred and fifty dollars was applied towards the payment of the first instalment due under the treaty with Mexico. The further sum of three hun- dred and forty-siz thousand three hundred and sixty- nine dollars and thirty cents has been paid into the treatury, and unexpended balances still remain in the hands of disbursing officers and those who were en- gaged in the collection cf these moneys. After the proclamation of peace, no further disbursements were made of apy unexpended moneys arising from this source. The ces on hand were directed to be paid into the treasury, and individual claims on the fund will remain unadjusted until Congress shall authorize their settlement and payment. ese claims are not rand one hundred and two dollars and ei cents for the interest on the public debt, and illion five hundred and forty thoueand dollars for the princi- al and interest due to to Mexico on the 30th of May, Ti50, leaving the sum of twenty-five million eight hua: dred and seventy-four thousand and fifty dollars and thirt; re conte; which, it lieved, will be amp! for t been ordii " tures. ‘The operations of the taritl act of 1846 hi ve | such during the past year as fully to meet the public different one, | ¢xpectation, and to confirm opinion heretofore was intended | expressed of the witdom of the cha: im our rer stem which was effected by it. The receipts it into the treasury for the first fiscal year after ite enactment by the sum of five million forty ‘that each new State gives strength and an additional | fou! jundred three dollars and @uaranty for the preservation of the | nion itself wii ‘nts, the collected during the last fecal In pursuance of the provisions of the thirteenth ar- | }+at under the tariff act of 1842, ending the thirtieth ‘ . > ~ pumber or amount. I: ecommend to your favorable consideration the sug- gestions of the Seeretary of War and the Secretary of the Navy in regard to legislation on this subject. Our Indian relations are presented in a most favor- able view im the from the War Department. ‘The wisdom of our policy in to the tribes withia our limits, is clearly manifested by their improved a rapidly improving condition. 5 most importent treaty with the Menomonies has been recently yy the Commissioner of In- dian Affairs in person, by wh! i their land in the State of Wisconsin—be' me about four millions of acres has teen ceded to the United Stater. This treaty be eubmitted to the Senate for ratification at an early period of your present session. Within the last focr years, eight important treaties bave beep negotiated with different Indian tribes, aod ate cost of one million eight hundred and forty-two thourand dollars; 'rdian Jands to the amount of more than eighteen milliom five bundred thousand acres, have been ceded to the United States; and provision has been made for settling in the country west of the Mistissipp! the tribes whiob’ occupied this large extent of the public domain. The title to all the Indian lands within the several States of our Union, with the excep- tion few small reservations, is now extinguish me vast region opened for settiement and culti ion. The accompanying report of the Secretary of the Navy gives a satisfactory exhibit of the operations and condition of that branch of the public service. A number of small vessels suitable for entering the mouths of rivers were judiciously purchased during the war, and gave great efficiency to the squadron in the Gulf of Mexico. On the return of peace, when no longer valvable for naval purpose, and liable to con- stant deterioration, they were sold, and the money placed in the treasury, ‘The number of men in the naval service authorized by law during the war. has been reduced by diecharges below the maximum fixed for the peace establish ment. Adequate squadrons are maintained in the several quarters of the globe where experience has shown their services may be most usefully employed ; and the na- val service was never in # condition of higher disci- pline or greater efficiency. J invite attention to the recommendation of the Se- cretary of the Navy on the subject of the marine corps. The reduction of the corps at the end of the war re- quired that four officers ef each of the three lower grades should be dropped from the rolls, A board of officers made the selectio! d those designated were necessarily dismiszed, fault. I concur in opinion with the Secretary, t! vice would be improved by reducing the num- and inoreasing the marines, just an increase of the number of officers to the extent of the reduotion by dismissal, and still the corps would have fewer officers than a corresponding number of men in the army. The contracts for the transportation of the mail in tteamships convertible into war-steamers, promise to reslize all the benefits to our commerce and to the navy which were anticipated. The first steamer thus teoured to the government was launched in January, 1847, There are now din another year there will, probably, be seventeen afloat. While this great national advantage is secured, our social and commercial intercourse is increased and promoted with Germany, Great Britain, and other parts of Eurepe, with all the countries on the Weat Coast of our continent, egpeciaily, with Oregon and California, and between the northern and southern sections of the United States. Considerable revenue may be expected from postages but the eonnected line from New York to Chagres, and thence across the fathmus to Oregon, cannot fail to exert a beneficial influence not now to be estimated, on the interests of the manufactures, commerce, navigation, and curren- cy of the United States. Asan important part of the system, I recommend to your favorable consideration the establishment of the preposed line of steamers be- tween New Orleans and Vera Cruz. It promises the most happy results in cementing friendship between the two republics, and in extending reciprocal benefits to the trade and manufactures ot both. The report of the Postmaster General will make known to you the operations of that department for the past year. It is gratifying to find the revenues of the depart- ment, under the rates of postage now established by law, 6o rapidly increasing. The gross amount of post- ages, during the last fiscal year, smounted to four mil- lion three hundred and seventy-one thousand and seventy seven dollars, exceeding the annual average received for the nine years immediately preceding the | F ge of the act of the third ot March, 1845, by the eur thousand four hundred and fifty-three dol- lars. and exceeding the amount received for the year ending the thirtieth of June, 1847, by the sum of four undred and twenty-five thousand one hundred and eighty-four dollars. | ‘The expenditures for the year, excluding the sum of ninety-four thousand six hundred and seventy-two | dollars, allowed by Congrees at its last session to indi- | vidual claimants, and including the sum ofone hundred | thousand five hundred dollars paid for the services of the line of steamers between Bremen and New York, ‘amounted to four million one hundred and ninety-eight thousand eight hundred and forty. dollars, which is less than nnual average forthe nine years pre- vious to the act of 1845, by three hundred thousand seven hundred and forty-eight dollars. ‘The mail routes, on the thirtieth day of June last, were one hundred and sixty-three thousand two hun- dred and eight miles in extent—being an inorease | during the last year of nine thousand three hundred and ninety miles. The mails were trai (rete over them, during the same time, forty-one million twelve thousand five hundred and seventy-nine miles; making an increase of transportation for the year of two mil- lion one hundred and twenty. four thousand six hun- dred and eighty miles, whilst the expense was less than tha‘ of the previous year by four thousand two hun- dred and thirty-five dollars, ‘The increaee in the mail transportation within the last three years has been five million three hundred and seventy-eight thousand three hundred and ten iniles, whilst the expenses were reduced four hundred and fifty-six thoueand seven hundred and thirty-eight dolla: king an increase of aervice at the rate of fifteen per t, and a reduction in the expenses of more than fifteen per cent. Dusing the past year there have been employed, | under contracts with the post office department, two | ocean steamers in {conveying tue mails monthly be- tween New York and Bremen. and one, since October last, performing semi-monthly service between Charles. | ton and Havana; and a contract has been made for the transportation of the Pacific mails across the | isthmus from Chagtes to Panama. Under the authority given to the Secretary of the Navy, three ocean steamers have been constructed and tent to the Pacific, are expected to enter upon the | mail service between Panama and Oregon, and the in- termediate ports, on the first of January next, and a fourth has been engaged by him for the service be- tween Havana and Chagres; 80 aregular monthly mail line will be kept up aftérAhat time between the United States and our territories on the Pacific. Notwithstanding this great increase in the mail ser- vice, should the revenue continue to increase the pre- sent year as it did in the last, there will be received near four hundred and fifty thousand dollars morethan the expenditures. ere considerations have satisfied the Postmaster General that, with certain modifications of the act of 1845, the revenue may be still further increased, and = ‘Yeduction of postages made to a uniform rate of five cents, without an interference with ald cred which bas been constantly and properly enforced, of making that department sustain itself. ‘A well-digested cheap postage system is the best means of diffusing inteiligence among the people, and is of so much importance’in a country so extensive as that of the United States, that | recommend to your favorable consideration the suggestions of the Post- master General for its improve: Nothing can retard th prev We ead melntalatng try, and ent us from assum! and maintain’ the bute disregard of the e pce of the past, and # recurrence to an unwise public policy. We have just closed «foreign war by an honorable e—a warrendered necessary and unavoidable in vindication of the national rights and honor. The present condition of the country is simi- Jar in some respects to that which existed immediate- ly after the clore of the war with Great Britain in 1815, and occasion is deemed to be a proper one to take a restrospect ofthe measures of the publio policy which followed that war. There was at that period of cur history a de} re from our earlier policy. The enlargement of the powers of the federal government by construction, which obtained, was not warranted by any just interpretation of the constitntion. A few years after the close of that war, a series of measures was adopted which, united and combined, constituted what was termed by their authors and advocates the “American system.” ‘The introduction of the new policy was for a time fa- vored by the condition of the country; by the heavy debt which had been contracted during the war; by the depression of the public credit; by the deranged state of the finances and the currency; and by the commercial und pecuniary embarrassment which ex- teprively prevailed. These were not the only causes which led to its establishment. The events of the war with Great Britain, and the embarrassments which had attended its prosecution, had left on the minds ot many of our statesmen, the impression that our go- yernment was not strong enough, and that to wield its resources successfully,in great emergencies, and espe- cially in war, more power should be concentrated fn ite hands, This increased power they did not seek to obtain by the legitimate and prescribed mode—an amendment of the constitution—but by construc- tion. They saw governments in the old world based upon different orders of society, and so constitut- ea as to throw the whole power of nations into the hands of a few, whe texed and controlled the many without responsibility or restraint. In that yr consisted. There was also something fescini ting in the ease, luxury, and display of the high orders, who drew their from the toil of the 1 boring millions. The authors of the sy: drew the’ {deas of political economy from what they had witness- ed in Europe, and perticularly in Great Britain. They viewed the enormous wealth concentrated in few and had seen the splendor of the overgrown biishments of an aristocracy which was upheld by They forgot to look down upon Emglish population, upon establishments }d and supported. en the restrictive policy. the poorer classes of the whose daily and yearly labor the gr they so much admired were ru: They failed to perceive that the tily-fed and half. clad operatives w not only in abject poverty, but were bound in chains of oppressive servitude for the benefit of favored classes, who were the exolusive Me of the care of the government. It wae not possible to reconstruct society in the United States upon the European plan Here there was 8 written constitution. by which orders and titles were not recognised or tolerated. A system of mea- | tive dutic | encourage a largely increased and wasteful expendi- sures was therefore devised, caloulated, if nob intended, to withdraw power gradually and silently from the States and the mass of the people, and by construc. tion, to approximate our government to the European models, substituting an aristooracy of wealth for that of orders and titles. ‘Without reflecting upon the dissimilarity of our in- stitutions, and of the c6ndition of our people end those of Europe, they conovived the vain idea of build- ing up in the United States a system simiiar to that which they admired abroad. Great Britain had a ne- tional bank of large capital, in whose hands was con. eentrated the controlling monetary and fii wer of the an institution wielding almost ingly powe: ing vast influen all the operations of trad pen the policy govern- it itself. G: Britain had an enormous publia debt, and it had become # part of her publio poliay to ublic blessing.” Great Britein regard this as a had also a restrictive polley, wh | erainmetted power and countless evils which sueh av insti- fans tht ental! op the country, nor pereseiving the connexion which ft was designed to form between the bank and the other branches of the miscalled | “American system,” But feeling the embatrassaents ot the treasury, and of the business of the country, | consequent upon the war, some of our stetesmen who | had held different and sounder views, were induced to | yield their ecruples, aud. indeed, rettled conviction of its unconsti(utionality, and to give it their sanction, anan expedient which they vairly hoped might pro- duce relief It was @ most unfortunate error, as the subsequent history and final catastrophe of that dan- gerous and corrupt institution have abundantly proved. ‘The bank, with it numerous branches ramified nto the States, soon brought many of the active politi- cal and commercial men in different sections of the country into the relation of debtors to it, and depen- dents upon it for pecuniary favors; thus diffusing throughout the mass of society a great number of in- dividuals of power and intiuence to give tone to public opinion, and to act in concert in cases of emergency. The corrupt power of such a political engine is no longer a matter of speculation, having been displayed in numerous inatanoes, but most cignally in the politi- cal struggles of 1882-'3-'4, in opposition to the public will, represented by a fearless and patriotic President. But the bank was but one branch of the new system. A public debt of more than one hundred and twenty millions of dollars existed; and it is net to be disguised that many of the authors of the new system did not re- gard its speedy payment as essential to the public prosperity, But looked upon its continuance as no na- tional evil Whilst the debt existed, it furnished ali- ment to the national bank, and rendered inoreased taxation necessary to tl jount of the interest, ex- ceeding seven millions of dollars annually, This operated in harmony with the next branch of the new system, which was a high protective tariff.— This was to afford bounties to favored classes and par- ticular pursuits, at the expense of all others. A propo- sition to tax the whole people for the purpose of enrich- ing a few, was too monstrous to ba openly made. The scheme was, therefore, d under the plausible but delusive pretext of a measure to protect “home indus- try; and many-of our people wi for @ time, led to believe that a tax, which in the main fell upon labor, was for the bemefit of the laborer who paid it. This branch of the system involved a partnership be- tween the government and the favored classes— the former receiving the proceeds of the tax im- pored on tter the in- creased pri produced at home, caused by sueh tax It is obvious that the portion te be received by the favored classes would, as @ g- neral rule, be increased in piece to the increase of th rates of tax imposed, and diminished as those ra‘ were reduced to the revenue standard required by the wants of the government. The rates required to pro- duce a euflicient revenue for the ordinary expendi- tures of government, for necessary purposes, were not likely to give to the private partners in this scheme profits suficient to satisfy their cupidity; and hence a variety of expedients and pretexts were resorted to for the purpose of enla.ging the expenditures, and thereby creating @ necessity for keeping up « high protective tarift he effect of this policy was to interpose arti- ficial restrictions upon the natural course of the busi- nes d trade of the country, and to advance the interests of large capitalists and monopolists. at the expense of the great mats of the people, who were taxed to increase their wealth. Another branch of this system was a comprehensive scheme of internal improvements, capable of indefinite enlargement, and sufficient tp swallow up as many millions annually ae could be exacted from the foreign commerce of the country. This was a convenient and necersary adjunct of the protective tariff. It was to be the greut absorbent of any surplus which might at any time accumulate in the treasury, and of the tax- es ievied on the people, not for necessary revenue pur- pores, but for the avowed object of affording protec- tion to the favored clasees. Auxiliary to the same end, if it was not an essential stem itself, was the Titer period, obtained, for distribu the rales of the public lands among the States. Other expedients were devised to take money out of the trea- sury, and prevent its coming in from any other source than the protective tariff. The authors and support- ers of the system were the advocates of the largest ex- penditures, whether for necessary or useful purposes or not, because the larger the expenditures the greater was the pretext for high taxes in the form of proteo- ‘These several mearures were susta'ned by popular names and plausible arguments, by which thoucands were deluded. The bank was represented to bean in- dispensable fiscalagent for the government, was to equalize exchanges, aud to regulate and furnish » sound currency, always and every where of uniform yalue, The protective tariff was to give employment to,‘American” labor at advanced prices; was to pretect “home industry,” and furnish a steady market for the farmer., Internal improvements were'to bring trade into every neighborhecd. and enhance the value of every man’s property. The distribution of the land money was to enrich the States, finish their public works, plant schools throughout their borders, and re- lieve them from taxation, But the fact, that for every dollar taken out of the treasury for these objects, a much larger sum was transferred from the pockets of the people to the favored classes, was carefully con- cealed, as was also the tendency, if not the ultimate design, of the system to buildup an aristocracy of wealth, to control the masses of society, and mono- polize the political power of the country. ‘Theseveral branches of this system were so intima- tely blended together, that in their operation each sustained and strengthened the others. Their joint operation:was, to add_ new burdens of taxation and to ture of public money. It was the interest of the bank that the revenue collected and the disbursements made by the government should be large, because, be- ing the depository of the ee money, the larger the amount, the eget would be the bank profits by its use. It was the interest of the favored classes, who were enriched by the protective tariff, to have the rates of that protection as high as possible; for the higher thote rates, the greater would be their advan- tage. It was the interest of the ple of all thore sections and localities who expected to be benefited by expenditures for internal improvements, that the amount collected should be as large as possible, to the end that the rum disbursed might also be the larger. The States being the beneficiaries in the distribution of the land moncy, had an interest in having the rates of tax imposed by the protective tariff large enough to yield a sufficient revenue from that source to meet the wants of the government, without disturbing or taking from them the Jand fund; so that each of the branches constituting the system had a common in- terest in swelling the public expenditures. They had a direct interest in maintaining the public debt un- paid. and increasing its amount Decause this would produce an annual increased drain upon thejtreasury, to the amount of the interest, and render augmented taxes necessar, public patronag government at the expense of a taxed and impoverish- ed le. Ie is manifest that this scheme of enlarged taxation and expenditures, bad it continued to il, must soon have converted the government of the Union,in- tended by its framers to be « plain, cheap, and simple confederation of mee, united together for common rotection, and chi with a few specific duties, re- jating chiefly to ou: eign affairs, into a consolidated pote depriving the States of their reserved rights, and the le of their just power and control in the tration of their government. In this manner, overnment would the constitution, id unsutho- administ the whole form and character of the be changed, not by an amendment but by Semin 7 to an unwarrantable rized construction of that instrument. The indirect mode of levying the taxes by a duty on imports, prevents the mass of the people from readily ceiving the amount they pay, and has enabled the ay who are thus enriched, and who seek to wield the political power of the country, to deceive and delude them. ‘Were the taxes collected by a direct levy upon the people, as is the case in the States, this could not occur. The whole system was resisted from its inception by many of our ablest statesmen, some of whom doubted its constitutionality and its expediency, while others believed it was, in all its branches, flagrant and dan- gerous infraction of the constitution. That a national bank, a protective tariff, levied not to raise the revenue needed. but for protection merely, internal improvements, ang the distribution of the proceeds of the sale of the public lands, are measures without the warrant of the constitution, would, upon the maturest. consideration, reem to be clear. Itis ble that no one of these measures, involving such momentous conrequences, is authorized by any express grant of power in the constitution. No one of them is “incident to, as being necessary and proper for the exeoution of. the cific powers” ated by the constitution. The jority under which it has been attempted to justify each of them is derived from inferences and constructions ef the constitution which its letter and its whole object and design do mot warrant. Is it to be conceived that such immense powers would have been left by the framers of the constitution to mere inferences and doubtfuf con- structions? Had it been intended io confer them on the federal government, it is but reasonable to con- clude that it would have been done by plain and une- quivocal grants. This was not done ; but th whole structure of which the “ American item” consisted, was teated on no other or better foundation than forced implications and inferences of power which its authors assumed might be deduced by construction from the constitution. But it has been urged that the national bank, which constituted so ersential a branch of this combined system of measurer, was not a new measure; and that its constetutionality had been previously sanctioned, because a bank had been obartered in 1791, and hi received the officiel signature of President Biol M ton. A few facts will show the just weight to whic this precedent shea vel ing , a8 bearing upon the uestion of constitutionality. Great division of opinion upon the subject existed inCongrers, It is well known that Pres ident Wash- ington entertained serious doubts both as to the con- stitutionality and Cason A of the measure; and while the Dill was before him, for his official approval or disapproval, so great were these doubts, that he quired “the opinion in writing,” of the me nbers of cabinet, to aid him in arriving at @ decision, Hi cabinet gave their opinion, and were divided upon the subject—General Hamilton being in favor of, and Mr. Jeflersonend Mr. Randolph being opposed to the con- stitutionality and expediency of the bank. It is well ino, that President Washington retained the Manteno aia ae went aot Po 1) a wen ‘el ene hi ing the leat moment ‘permitted him by the to deliberate, when he finally yielded to t his reluctant asrent, and gave it his signature. At bin relinat as late as the twenty-third of February —being ni oy, after the bill was presented to him—he had ved at no satisfactory con- elusion ; for, on that 4 he addressed a note to General Hamilton, Im which he him that “this Dill was presented to me by the joint committee of Congress, at 12 o’olook, on Monday, the fourteenth instant;”’ and he request- a his opinion “to period, by legal te ‘of the constitution, oan the President bofore it becomes Le hf proper construction Dill was presented to Ag) aye it t it the day ou which th: | that President Washington, while he yet the President, and the day on whictr ts actio upon it, were both to be counted inotusi the time allowed him, within which it would’ he com- petent for him to returo it to the House in which 16 originated with bis objections, would expire on Thaurs- day the twenty fourth of February, General Hamil- top, omthe same day, returned a» answer, in which he states:—“ I give it 'as my opinion that you have ten days exclusive of that on which the bill was deli- vered to you, and Sundays; hence, in the present case, if it is returned on Friday, it will bein ttme,’* By this construction, which the President adopted, he gained another day for deliberation, and it was not until the twenty-fifth of February that he signed the till; thus affording conclusive proof that he had at last obtained his own consent to sign it not without great and almort insuperable difficulty, Additional see bag been recently shed upon the serious doubts which he had on the subject, amounting at one time toaconviction that it was his duty to withhold his ap- proval from the bill, This is found among the m script papers of Mr. Madison, authorized to be chased for the use of the government b: last ression of Con cersible to the pubite. ‘om these papers, it. api bank billin his hands, actually requested Mr. \ st that time a member of the House of Representatives, to prepare the draft of # veto message for him, Mr, Madiron, at his request, did prepare the draft of such o message, and sent it to him on the twenty- first of February, 1791 A copy of this original ‘drat, ia Mr. Madiron’s own handwriting, was carefully pre- srved by him, and is among the papers lately pur- ed by Congress. Itis preceded by a note, written on the eame sheet, which is also in Mr. Madison’s handwriting, and is a8 follows:— “February 2ist, 1791. Copy of @ paper made out and sent to the President at his it, to be ready in case his judgment should final olde against the Will for incorporating # national bank, the bill being then before him.’” ‘Among the objections assigned in this paper to the Dill.and whioh were submitted for the consideration of the President, are the “| object to the bill, because it is an essential prin- of the government, that powers not delegated by Constitution cannot be rightfully exercised ; bee caare the power proposed by the bill to be exercised is not GP shoei delegated, and becaure | cannot sati: myrelf that it resuits from any express power by fi ‘and safe rules of interpretation.” The weight of the precedent of the bank of 1791, and the- sanction of the [ane mame of Washington which has been s0 often invoked in its support, are eatly weakenediby the developement of these facts. ‘he experiment of that bank satisfied the country that it ought not to be continued, and at the end of twenty yeers Congress refused to recharter it It would have been fortunate for the country, and saved thourands from benkruptoy and ruin, had our public men of 1816 resisted the temporary pressure of the times upon our financial and fperasieky interests, and refused to charter the second bank. Of this the coun- try became abundantly tatisfied, and at the close of its twenty years’ duration, as in the case of the first bank, it also ceased to exist. Under the repeated blows of President Jackson, it reeled and fell anda subsequent attempt to charter a similar institution ‘was arrested by the veto of President Tyler. Mr, Madison, in yielding his signature to the char- ter of 1816, did soupon the ground of the respect due to precedents; end, as he subsequently declared, “ the Bank of the United States, though on the origi- nal question, held to be unconstitutional, received Executive signature.” It is probable that neither the bank of 1791, nor that of 1816, would have chartered but for th bar- rassments of the government in its finances, the de- rangement of the currency and the pecuniary pres- sure which existed—the first the consequence of the war of the revolutioa, and the second the consequence of the war of 1812, Both were resorted to in the delu- sive hope that they would restore public credit, and afford reliet to the government, and to the business of the country. ‘Those of our public men who opposed the whole “American system” at its commencement, and throughout its progresss foresaw and predicted that it was fraught with incalculable mischiefs, and must re- sult in serious injury tothe best interests of the coun- try. Fora series of years their wise counsels a heeded, and the system was blished. It wassoon apparent that its practical operation was unequal and upjust upon different portions of the country, and upon the people engaged in different pursuits, All were equally entitled to the favor and protection of the government. It fostered and elevated the money power. and enriched the favored few by taxing labor, and at the expense of the many. Its effect was to “ make the rich richer, and the poor poorer.” Its ten- dency was to create distinctions in ‘society based on wealth, and to give to the favored classes undue con- trol and sway in our government. It was an organized money power, which resisted the popular will, and sought to shape and control the public Policy. Under the pernicious workings of this combined system of measures, the country witnessed alternate seasons of temporary apparent prosperity ; of sudden a jtrous commercial revulsions ; of unprece- fluctuation of prices, and depression of the great interests of agriculture, pavigation, and com- merce ; of general pecuniary suffering, and of final bankruptcy of thousands. After a severe struggle of more than a quarter of acentury, the system was over- thrown. The bank has been rucceeded by & practical system of finance, conducted and controlled solely by the government. The constitutional currency has been restored ; the public credit maintained unimpared, even in a period of foreign war; and the whole coun- try has become satiefied that banks, national or State, ere not necersar: al agents of the government. Revenue duties have taken the place of the tai The distribution of the money derived trom the sale of the pub!io lands has been abandoned, and the corrupting system of internal improvements, it is hoped, has been effectually checked. it ia not doubted, that if this whole train of measures designed to take wealth from the many, and bestow it upon the few, were to prevail, the effect would be to change the entire character of the government. Or» only danger remains. It is the seductions of thut branch of the system, which consists in internal im- provements, holding out, as it does, inducements tothe people of particular sections and localities to embark the government in them without stopping to calculate the inevitable consequences. This branch of the sys- tem is so intimately combined and linked with the others, thet as surely as an effect is produced by a1 adequate cause, if it be resuscitated and revived, and firmly established, it requires no sagacity to foresee that te will necessarily and dily draw after it the re-establishment of a natiot ank, the revival of a protective tariff, the distribution of the land money, and not only the postponement to the distant future of the payment of the present national debt, but its annual increase. 1 entertain the solemn conviction, that if the inter- nal improvement branch of the‘ American system” be not firmly resisted at this time, the whole series of mea- sures composing it will be speedily re-established, and the country be thrown back from its present high state of prosperity, which the existing policy has produced, and be pres het again to witness all the evils, commer. cial revulsions, depression of pric \d pecuniary em- berrassments, through which we have passed during the last twenty-five years. To guard against consequences fo ruinous, is anob- ject of high national impertance, involving in my judg- ment the continued ‘ity of the country. Thave felt it to be an imperative obligationt o with- hold my constitutional sanction from two bills which had passed to the two houses of Congress, involving the principle of the internal improvement branch of the “American systom, and conflicting in their provisions with the views here expressed. ‘This power,conferred upon the President by the con- stitution, I have on three occasions, during my ad- ministration of the executive department of vern- ment. deemed it my duty to exercise, andon last occasion of making to Congress an annual communica- tion “ of the state of the Union,’ it is not deemed in- appropriate to review the principles and considerations which have governed my action. I deem this the more necessary, because, x the lapse of res Mp d years since the adoption of the constitution, pro- piety of the exercise of this undoubted constitutional power by the President has for the first time been urawn seriously in question by a portion of my fellow- vides that “ every bill which jouse of Representatives and the te, shall before it become a law, be presented to the President of the United States; if he approve, he shall sign it, but if not, he shall return it with his objections, to that house in which it shall have originated, who shallenter the objections at large on their journal and proceed to reconsider it. ‘The preservation of the constitution from infraction is the President's highest G38 He is bound to dis- charge that duty, at whatever hazard of incurring the displeasure of those who may differ with him in opine ion. He is bound to discharge it, as well by his obli- gations to the people who have clothed him with his exalted trust,as by his oath of office, which he not disregard. Nor are the obligations of the Pi valence of jadison, dent, in any degree lessened by the views different from his own in one or bi time Congress shal resolve on measures which he deems subversive of the constitution, or ofthe vital interests of the country, it is the solemn duty to stand in the breach and resist them, The President is bound to approve or disap- prove. every bill which passes Congress and in present~ ed to him for his signature. The constitution makes this his duty, and he cannot escaps it ifhe would He hasno election In deciding upon any Dill presented to him, he must exercise hisown best judgment. If he cannot approve. the constitution commands him to re- bill to the House in which it originated, with tions; and if he fail to do this within ten days. (Sundays excepted.) it shall become a law without his signature. Right or wrong, he may be overruled by a vote of two-thirds of each House; and, in that event, the bill becomes a law without his sano- tion. Ifhis objections be not thus overruled. the sub. ject is only postponed, and is referred to the States ‘and the people for their consideration and decision. The President's power is negative merely, and not af- firmative. He can enact no law. The only effect, therefore, of his withhotting his approval a bill passed by Congress, Js to suffer the existing Inws to re- main unchanged, and the delay occasioned is only thet required toenable the States and the people to con- sider and act upon the subject inthe election of public ents who will carry out their wishes and instruc. tions, Any attempt to coerce the President to yield his ranction to meatures whieh he cannot approve, ‘would be a violation of the spirit of the constitution, pable and fingrant; and if successful, would break jown theindependence of the executive departme: and make the Prerident, by the people. and clothed by the constitutio ith power to dene their rights, the mere instrament of « majority of Co! 3 A surrender, on bis the povers with which the constitution has inverted his office, woukd effect of that itrument, without re. process of ame: r considerations which may fa- juce Congress to pate any bill, President can have nothing to d le must presume them to beas pure an his own, look only to the practical effect of thei: yh othe pit good compared with the eonstitation But it bas beem urged by those who abject ta the ox- i