proceeds to perform-of presenting some opinion concerning the amounts to which, under the exist ing laws, and the calls of the different departments, they are likely to attain.

He will further suggest any general changes which appear to him expedient, as well as any new means deemed necessary to meet all the burdens, which, it is apprehended, may be imposed.

The estimates for the ordinary receipts and expenditures in the ensuing year differ some millions from what will be actually received and expended in the present one.

It is calculated, however, that the difference will be what is always most desirable,-some increase of the receipts, and a further diminution of the expenditures.

The estimates for the latter, in the present year, were made less than those of 1839; and the results have corresponded. Indeed, it is a cause of much gratification that the expectations heretofore cherished, of materially reducing the public burdens, have been verified to so great an extent. Thus, the expenses of 1838 fell below those of 1837; while the expenses of 1839, notwithstanding the continuance of the Florida war, were nearly eight millions below those of 1838; and it is expected that the expenses of 1840 will be from two to three millions still lower, or quite ten millions less than those of 1838.

They would have been nearly twelve millions less, had not that war continued, and unusually large payments been made to Indians, under old appropriations.

It is believed that the ordinary expenses of 1841 ought to fall some millions below those in 1840;

as

the pensions have diminished by deaths, fewer Indians remain to be removed, several expensive public buildings have been mos ly finished, and hostilities with the Seminoles must be nearer to a close.

More details concerning the estimates for the next year will be proper, and will illustrate the correctness of some of the preceding results.

It may be stated, from the best data in possession of this Department, that the receipts, under the existing laws, will probably be as follows: From customs

$19,000,000

3,500,000 80,000

1,580,855

24,160,855

A power will exist, under the act of 31st March, 1840, to issue Treasury notes till a year from its passage expires, but not to make the whole emission outstanding at any one time exceed five millions of dollars. This will furnish additional means, equal to the computed amount

which can be issued at the close of the present year, being about

Hence, there may be added, from these several sources, so much as to make the whole means for the next year On the other hand, the expenditures for 1841 for ordinary purposes, if Congress make no reduction in the appropriations requested by the different departments, are estimated

at

This would leave a balance in the Treasury, at the close of the year, equal to

But certain payments must also be made on account of the funded and unfunded debt, unless Congress authorize contracts to be formed for

220,000

342,618

24,723,473

19,250,000

5,473 473

Thus it will be seen that if the whole of these charges, both ordinary and extraordinary, should be required to be extinguished in 1841, the estimated means will be sufficient for that purpose, but may not, besides, leave so large a balance in the Treasury as is convenient and useful. The best mode of obviating any difficulty which might arise from that circumstance will soon be considered by itself. For some further general view of the grounds of the estimate of the expenditures for 1841, it will be necessary to advert a few moments to the new and old appropriations from which those expenditures are to be made.

The new ones, proposed by the different Departments for the service of 1841, amount to $16,621,520 28.

Viz: Civil, diplomatic, and miscella

These would make the new charges, for ordinary purposes, under both new and permanent appropriations, amount to $17,485,520 28. But, including the public debt and the redemption of Treasury notes, these charges would be $22,134,720 28.

It will be perceived, therefore, that the aggregate of actual expenditures during 1841 has been computed to be $1,764,480 higher than the estimated amount of new and permanent appropriations. This is done not only because some small oversights have doubtless occurred in the latter, and unavoidab'e omissions, as will be seen by the notes, but some new private bills, granting money, may be passed by Congress, and a greater proportion of the outstanding appropriations at the end of 1840 (though reduced as much as three or four millions less than at the end of 1839) may be expended in 1841, than will be left unexpended of the new charges imposed. These last two items are usually computed to equal each other. The Departments calculate thai $6,661,123 of the old appropriations will be required to complete the purposes originally contemplated by them.

They propose only to apply about $3,749,904 of them to the service of the ensuing year, without re. appropriation; and the residue, amounting to $138,878, it is expected will go to the surplus fund They estimate the whole of them at the close of the year to be $10,549,905.

VI. A few more explanations of other grounds for the estimates of receipts and expenditures for the next year may be useful.

It will be noticed that the estimates for both are founded principally on the existing laws. Should Congress, therefore, alter the tariff, so as to increase or reduce the duties, the expected amount of receipts must of course be varied in that propor

tion.

So it must be if Congress makes any essential change in respect to the public lands, and either

passes a graduation bill, and creates new land districts in which surveys are ready for large sales, as this would increase the immediate receipts; or if, on the other hand, it should distribute the proceeds of the sales among the States, as that would diminish the revenue applicable to the purposes of the General Government, and render a resort to new taxation, an increased tariff, or a loan, indispensable, to the extent of the distribution.

The estimates of the receipts from customs have been lessened somewhat, because the importation of certain articles paying a duty will, in 1841, be partially postponed to 1842, in consequence of the great reduction in the tariff on them which will take place in the latter year under the existing laws.

So have they been on account of the greater proportionate bounties and drawbacks which are now returned on several articles, and some beneficial operation anticipated from the Independent Treasury in checking speculation.

On the contrary, the revulsions in business which have occurred since the middle of 1839, and deeply affected the revenue of some other countries as well as our own, and the protracted suspension of specie payments by many of the banks, which has continued over a large part of the United States since October in that year, will probably terminate soon, by the salutary reaction of great commercial principles; and that event must be accompanied by a considerable increase of imports and duties. The amount of the latter, therefore, kas been estimated higher than the actual receipts in the present year, but not so high as they were in 1839 by about two millions, nor so high as many anticipate they will be. But if the banks do not speedily resume, it is to be feared that the estimate will prove larger, instead of smaller, than events will verify.

The revenue from lands must continue to be lower under the present laws than might otherwise be expected, because that portion of the vast sales in 1835 and 1836 which were made to speculators, must for some years longer come into the market in competition with the Government; and the emigration to Texas, as well as the continuance of the suspension of specie payments by the banks over much of the West and Southwest, is likely to ope. rate injuriously somewhat longer, though probably with a force much diminished.

In respect to the estimates for expenditures, it need only be observed here, that any considerable addition made by Congress to the new appropriations called for, would require a provision of fur. ther means to meet them, corresponding in amount; and any diminution in those appropriations would also reduce, in a similar manner, the amount of means otherwise necessary.

VII. It is proper to advert next to the best mode of avoiding any inequality between the anticipated receip's and expenditures, either in 1841 or 1842.

It has already been shown that the whole amount of receipts in 1841 will probably be sufficient te discharge all ordinary expn litures, and those parts of the outstanding debt, funded or unfunded, which may become due. But the preservation of a suitable balance in the Treasury may require more than what will probably be left after satisfying other purposes. The raising of any sum for that object in 1841 could, however, be obviated by authorizing a contract to be made, under proper restrictions, extending the period of payment for a portion of the temporary liabilities falling due in that year. Yet, in the opinion of the undersigned, the best mode of providing for this case would b, without either an extension of this kind, or a loan, or a further issue of Treasury notes, or a change in the tariff; but merely by les ening the appropriations for the service of 1841 below the estimates, or by passing such declaratory clauses as to the present tariff, and such acts as to the public lands, as have heretofore been urged on the consideration of Congress.

The arguments in favor of some further diminution in our expenditures, and the general items in which the reduction is considered most compatible with the public interests, were so fully exhibited in the last two annual reports as to render a repetition of them unnecessary.

It was then believed that the laws could be alter

el so as to admit of safely curtailing the appropriations at once, to such an extent that the expenditures need not exceed, in the aggregate, seventeen or eighteen millions yearly. After more of the pensions termina'e, and the removal of the Indians is completed, they could be beneficially contracted to even less than that amount. Such a reduction as is first adverted to seems, therefore, proper to be adopted now, since it could be effected without the probability of injury to any useful national establishment, would promote public frugality, and supersede the necessity either of higher tariffs, direct taxes, or permanent debts.

If that be not done, the secondary measures before suggested, such as a declaratory act to enforce the present tariff, a suitable modification of the drawbacks and bounties; and the passage of bills graduating the price of public lands, as well as creating some new districts for the sale of them, would be likely, if taking effect early, to yield a suitable supply in the course of the year.

It will be observed, however, that though, under either of these arrangements, enough might be ob tained within the whole of 1841 for the objects contemplated, yet not a due or sufficient proportion in the first quart.r; because by that time all the measures are not likely to go into full operation, nor much of the anticipated increase to happen in the actual receipts of duvies under existing laws. Unusually heavy expenses will also fall on that quarter in the next year. In addition to a full portion of most of the current expenses, and the whole pension payments for the first half of the year, and one-third of a million, or more, for all the annual fishing bounties, there will be imposed on it most of the charges for the whole year connected with the session of Congress and private bills, as well as large payments for taking the census, and for the first instalment of the debt of this District; several of them as early even as the first day of January.

From these circumstances, and the considerations that all which is due from the banks may not be then paid, and that the balance in the Treasury, under the policy adopted by Congress of late years, will of necessity be small, while the fluctuations and inequalities are very great between the receipts and expenditures in different portions of the year, to which we are constantly exposed from causes that have on former occasions been explained at length, it must be obvious that entire safety requires a conditional power to be seasonably conferred on the Executive to obtain at any time with 1841 such subsidiary means as may be needed for a few moths, and as may be sufficient to enable the Treasury punctually to discharge, during that year, all the liabilities imposed by Congress.

There is another contingency under the existing laws, as to duties, which requires attention, with a view to be properly prepared far it; though legis. lation concerning the subject is not necessary so carly as in the other case, because the event on which it depends cannot actually happen till the year 1842.

Thus the progressive reduction of the present tariff, which has been going on since 1833, will, after December, 1841, take effect to a much larger extent than heretofore. Nearly two millions and a half of dollars will then be deducted at once.

On the 1st of July afterwards, at least two millions and a half more of duties will be removed; making an aggregate, in six months, of quite five millions. If the imports then should not differ much from those in 1838, this would leave an income from them, not probably exceeding ten or eleven millions of dollars yearly. It will therefore be necessary to make corresponding reductions in the expenditures of 1842, or seasonably provide otherwise, in some permanent manner, to supply any wants likely to happen from this cause.

Should Congress conclude that such reduction in the expenditures cannot properly be made, and that the imports for 1842 will not increase beyond those in 1838, the amount of the defic ency would, in those events, probably differ but little from five millions. Such a deficiency would, under these circumstances, be likely to become permanent, and may be considered the first of that character which will occur under the tariff act of 1833.

The idea that such a deficiency in time of peace ought to be supplied by issues of Treasury notes, or by a loan, has never been entertained by the undersigned. Nor can it be countenanced by any sound principles either of finance or political economy. The inquiry then recurs, what other mode would be more eligible? When we possessed an extraordinary surplus, it was considered prudent by Congre's to make deposites with the States, with a view to be returned in an exigency, rather than to invest a portion of it safely and productively, so as to be realized in such an event. It would therefore be consistent with that arrangement to recall, in 1842, such part of the surplus as may be then needed.

That course, however, appears not very likely to be adopted, since the former power given to this Department to recall these deposites has been taken away by Congress.

Another practicable mode would be to resort to direct taxes. But this is so unsuited to the general habits, and so uncongenial to the opinions ef most of our population, that its adoption is not to be anticipated. Some other permanent resource must then be looked to. The choice will probably rest between the large reduction of expenditures, with the other accompanying measures before specifie), and some extensive modification of the present tariff. Explanations have heretofore been given by the undersigned in favor of the former course; and it would probably prove sufficient to meet the emergency, if the reduction be pushed vigorously, and especially if the imports after 1841 shall exceed those in 1838, which is regarded as probable.

But Congress may not coincide with him in opinion on these points, and, for covering the contingency, may consider the adoption of some permanent change in the tariff as preferable, and as not too early at the present session, to give full notice of its character, before going into operation, in order that the different interests most affected by it shall have time to become gradually adjusted to its provisions.

In that event, it might be supposed that the undersigned had avoided due responsibility, and a timely discharge of duty, if he were not prepared to offer some views concerning the details, as well as general principles, which he deems applicable to such a change. He has therefore examined the subject, and is ready to present the results at any moment either House of Congress shall express a wish to that effect. But he refrains from submitting them without a special request, because some doubt exist, under circumstances which can be properly appreciated, as to the delicacy of his discussing a measure at this time, which the Legis!ature may not consider it necessary to act on till a new Congress assembles.

VIII. The mode of keeping the public money recently established by Congress, has thus far an. swered the expectations of this Department.

The numerous labors, perplexities, and delays of putting a new system into operation, have been mostly overcome, and no losses whatever are known to have occurred under it.

Some of the provisions in the law are deemed objectionable in their details, and are respec fully recommended to Congress for revision. But they are not supposed to affect in the slightest degree any principle involved in the measure.

Thus, the ordinary clerks authorized are numerous enough, yet a principal one is needed at New York city, with such compensation as is usual at a place of so large and important business.

On full inquiry, it has been found also that no site could probably be purchased for the erection of an office at St. Louis, which would be more suita ble than a lot now owned by the United States; and it may be, under a further examination which is in progress, that no new building could be erected on that site, which would prove more economical and conven ent, than one which can be purcha ed already erected. A suitable change in the appropriation on that subject is therefore respectfully recommended

A provision is needed likewise in case of vacancies, from any cause whatever, in the offices of receivers general and treasurers. One has formerly been asked in relation to collectors of the customs,

in cases of removals and expirations of the terms of office, to prevent an interregnum in the discharge of the duties. This might properly be adopted as to them, and extended to receivers general and the Treasurer of the United States, as well as of the Mint and its branches, in all instances whatever of vacancy or temporary inability of the principal. Perhaps the least objectionable mode to effect this object would be, to direct that the chief clerk of all these officers should, in such cases, aud where no other legal provision now exists, be authorized and required to discharge these duties, at the risk and under the responsibility of the principal and his securities, till the vacancy is filled, or the disability removed.

In consequence of some defects in the phraseclogy of the penal parts of the act, a new clause extending them to all disbursing officers of every character under the General Government would be judicious. A further provision also, respecting the places of deposite, by disbursing officers, of money not in the Treasury, but drawn out and put into their hands for making payments, appears

necessary.

The keeping of such money is now regulated by the act of 3d of March, 1809; and if it is intended to bring it within the operation of the late law as to money in the Treasury, it seems proper to do so by an explicit enactment.

The section requiring disbursing officers to sell their drafts for specie alone, though certain proportions of paper are allowed to be received for all public dues, appears not to be in symmetry with those other provisions. The general influence of the present system is believed to have been thus far salutary. The true standard of value has been rendered more familiar, conadence has been increased in its stability, prices have gradually riven, business improved, and exchanges altered grea'ly for the better.

If something has been or may be lost in convenience, (which is not unlikely,) by the increasing disuse of a paper currency for public paymen's, much more will probably be gained by the ccumstar ces before enumerated, as well as by the greater security in the use of specie, the more stable value imparted by the present system to property and labor, and the strong check established by it, not only against defalcations, but against bank expansions, excessive speculations, and commercial fluctuations.

Even any inconvenience attending this change in the currency used, if found particularly embarrassing, can be overcome hereafter, and the system still maintained, should Congress feel disposed to adopt the measure which was suggested for that purpose by the undersigned in September, 1837.

Such a measure would often furnish every advantage of a circulating medium, casy of transportation, of the highest possible credit, and at the same time requiring an equal amount of specie to be employed, (though in deposite,) and without subjecting any of the fiscal affairs of the Govern ment to that legal dependence on corporations for their management, which is so objectionable in many respects, as never to have been attempted in the management of any of its other affairs, civil or military.

The topics of the condition of the banks of the Union; the state of the currency; the proper places of deposite for the public funds, and other matters immediately connected with them, have engrossed a considerable portion of the annual reports from this Department for several years.

But the keeping of the money in the Treasury being how separated from the banks, and the kind of money to be received and paid out fixed by new legal provisions, it is not considered material at this time further to discuss these matters, hin to submit the general remarks which wil be found at the close of this communication.

IX. Some miscellaneous topics connected with the finances deserve a brief notice.

The various measures heretofore recommended to Congress by the undersigned, and which have not yet been finally acted on, are again respectfully recalled to its attention.

Without recapitulating them, it will be found, on a reference to former reports, that many of the sub

jects possess much importance in a fiscal view, and every year's experience has strengthened the conviction of the usefulness of early action upon them.

It affords me pleasure to state that, since the last ses ion, the Neapolitan Government, under its treaty of indemnity, has paid promptly another instalment, which this Department has been enabled to have remitted home early, and distributed among the claimants.

The situation of the General Land Office, and its operations within the year, will be submitted separately in a few days.

Six old land districts have been recently discontinued, under the act of June 12, 1840. It is believed that some others might economically and usefully be abolished by Congress, though not coming within the provisions of that law. Such is the office at Greensburg, Louisiana. One district in Indiana, including the capital of the State, is thought, from its peculiar position, to require special legislation to exempt it from the operation of the late act.

This occasion is taken, also, to renew the recom. mendations, before presented by this Department to Congress and the appropriate committees, for the discontinuance of certain officers now employed in the collection of duties, whose further services, it has been believed, could be safely dispensed with, in consequerce of the reduction in business of late years at the different places where they are station. ed. They include some collectors and naval officers, and several surveyors, amounting in all eighteen, but whose offices cannot be abolished without new legislation.

All the subordinate custom-house officers, which it is competent for this Department, without such legislation, to dispense with, and whose situation was in other respects similar, have already been discontinued, including, within two years, more than fifty officers, and, besides those, five vessels and boats, with nearly one hundred men, in the cutter service. In about forty other cases, the compensat on of officers and light-house keepers has been reduced.

X. In closing this last annual report of the undersigned, it may be expected that he would advert, for a moment, to the general character of some of our financial operations during the period of his connection with the Treasury Department.

Though employed in different Executive offices nearly ten years, he has been connected with the Treasury only from six to seven of them.

During this term there has occurred much to evince the great fiscal power, as well as prosperity of the Union. Some reverses have, at times, overtaken the rashness displayed by parts of the community in certain branches business, and have extended their adverse influences to the revenue dependent upon them. But the period and the country, as a whole, have been almost unexampled in prosperous developments.

Thus, in respect to our receipts. Notwithstanding the unusual revulsions in imports on two ccca. sions, so sensibly lessening the revenue; notwithstanding any losses sustained in those crises, by the Government, through officers, banks, or merchants; and notwithstanding the biennial reduction in the duties, which has by law been constantly going on, as well as the remission of several milions to railroad corporations, and under new judicial constructions; yet our condition has been so flourishing, as to yield a revenue during that time sufficient, after all those deductions, to accomplish the following important results. It has enabled the Treasury to meet the current expendi. tures of the Government, as well as the extraordinary ones by Indian wars, treaties, and other costly measures, and, without imposing any new taxes, or higher tariff, and without any new funded debt whatever, but extinguishing considerable remains of the old one, and paying the interest on that assumed for this District, to save the unprecedented surplus of more than twenty-eight millions of doɔllars, and deposite the same with the States for safe keeping till needed by the General Govern

ment.

Toe only permanent aid in effecting this, beyond the receipts from ordinary sources, has teen the

debt due from the United States Bank, of about eight millions, and the Treasury notes now outstanding, equal to nearly four and a half millions. But during that period, a sum not far from the first amount has been applied to the discharge of the principal and interest of the old funded debt; so that, towards the payment of all other expenses, only between four and five millions, beyond what was temporary, and what has already been refunded or adjusted, have been received from any extraneous Source whatever.

It follows, therefore, that the current revenue, notwithstanding all reductions, has bɛen adequate to defray both the ordinary and extraordinary demands, and, after taking from what is deposited with the States, sufficient to extinguish every kind of indebtedness created on account of the General Government during the same period, to leave on hand the large balance of nearly twenty-four millions.

It is true that the available sums in the Treasury at the commencement and close of the period in question will probably prove different in amount; but if made equal, a surplus would still be left, which is likely to exceed seventeen or eighteen millions of dollars.

Beside this recorded evidence of the prosperity of the country and the fiscal ability of the General Government in those years, it is gratifying, amidst many misapprehensions concerning the subject, to reflect on another circumstance connected with our financial operations, which has also become matter of history. It is this: Though destitute of the aid of a United States Bank as a fiscal agent during that period, and baffled by various unremedied imperfections in the laws connected with the finances, as well as embarrassed by two suspensions of specie payments by many of the State banks-one still continuing; yet the Treasury has been able to make its vast collections, transfers, and payments, with promptitude, and in most cases with specie or its equivalent.

Some correct judgment can be formed of the extent and difficulty of these operations, when it is recollected that the whole sums which have thus been collected, without deducting fractions, added to those sums which have been paid over chiefly by another class of fi ers, have ( exceeded

the extraordinary aggregate of $360 000,000, and been dispersed over a territory of nearly two million square miles in extent. It is, moreover, ascertained that the whole losses within the same time by defaul's, large and small, and in all kinds of offices, will probably not equal half of one per cent. on that amount; and however official delinquencies may, in some cases, have inevitably been aggravated by the unprecedented speculations of the times, and by great revulsions and failures among banks and individuals, those losses will not be one-fourth so large, in proportion to the amounts collected and paid, as in some previous terms, when the system under a United States Bank was in full operation.

A few words may be proper as to the expendi. tures during the same period. Though they were of necessity augmented by some of the circumstances before mentioned, two Indian treaties only, out of a large number, having already involved us in the expense of nearly twenty-three millions of dollars; yet the aggregate of all has been much reduced since the influences of those causes and the impulses of an overflowing Treasury have diminished. The expenditures have fallen yearly since 1837, till they are now only twenty-two and a half millions independent of any debt and trusts, and are supposed to be in progress to a still lower

amount.

The undersigned has earnestly urged a more rapid reduction. He has has considered the great safe. guard against a too splendid central government, which would constantly threaten to overshadow all State independence, and attract the ambition of most of the friends of State Rights from humb'er pa'hs of frugality and principle into the dazzling vortex of higher patronage, honors, and emoluments. While the stimulants to excesses shall continue to lessen, nothing will be necesssary to insure the further success of an economieal policy, but perseverance in retrenchments, wherever they are practicable with

out injury to the public interests. The removas: Indians being mostly finished, and the causes of frontier wars extinguished, unless T objects of expenditure be selected, or a great di largement given to some already existing, u whole amount must, of necessity, contract hereaf very rapidly. The same result will be furt promoted by the deaths of pensioners, increas through advanced age, and the completion of m public works, as well as by persisting in a firm licy to avoid the wasteful expense of unnecessar foreign collisions, and to refrain from those larg expenditures for certain domestic objects, cr! which the jurisdiction of the General Governma is often questionable, and which always open widest door to extravagance, favoritism, and c ruption.

One of the greatest evils to the public service, well as to the security of private business, during part of the above period, has consisted in the f tuations to which both have been subjected.

With only a single year intervening, and wi out any material change in the tariff, or any wha ever in the price of the public lands, we have sta the revenue from ordinary sources suddenly va from nearly fifty millions annually to eighteen; an on two occasions since, vibrate to the extraord nary extent of nearly eight and eleven million yearly.

The transactions of individuals upon which cu revenue depends, must, of course, have undergott an unusual change at the same time.

The imporis fell within two years, in the cas first referred to, from near one hundred and ninety millions to one hundred and fourteen; and in the single ycar just passed, fell almost sixty millions Such inflations and contractions must be destruc tive of all confidence in calculations for the future, while the causes of them shall continue to opera unremedied.

What were those causes?

They will be found to have been chiefly connec ed with the abuses of banking. On the occasion first referred to, they were the superabundance of a fictitious medium of circulation, with the al tendant overtrading and speculations in 1836, and the consequent suspensions of specie payments in 1837, as well as the disasters and scarcity of any ¦ medium till the latter part of A. D. 1838. Ther another expansion commenced, extending into 1839, and accompanied by another increase in im ports of nearly fifty millions, which ended again in the contractions by banks, suspensions, and com. mercial reverses, which have suddenly reduced the imports of 1840 more than one-third, and in many places augmented seriously the embarrassments be fore existing from similar vacillations in the paper

currency.

How far some imprudences abroad, at the same time, similar to these, though in a country enjoying any advantages which can result from a National Bank, may have augmented the evils here, by means of the intimate moneyed relations between us, need not now be discussed, though probably their influence was large and unfavorable.

The causes first named were, likewise, in fall operation here in 1816 and 1817, and were suc ceeded by many of the same deplorable conse quences in 1819 and 1820. One followed the other as inevitably as the ebb of the tide succeeds its flood.

The great principles of trade can never be long violated with impunity; and any fictitious or unna. tural excess of credit soon ends in revulsions, as the Essence of legitimate commerce, consists in an exchange of values for each other, or of values for what truly represen's values, and can be readily converted into them.

All business otherwise becomes a mere game of hazard; speculation must enter into every affair of life; riches and roverty will be dependent on the merest bubbles; prices will change oftener than the wind; regularity in receipts and expenditures be impossible; estimates for the future, whether in public or private matters, become mere conjectures; tariffs require yearly alteration to meet the fluctua tions of business; and the community be kept un. der the constant excitement and depression of the hot and cold fits of a violent fever.

The first remedy sought in 1816, by the estalishment of a National Bank, was supposed, during few ensuing years, to have aggravated those evils; nd the next remedy, adopted in 1824 by a high taff, did not prevent the low prices and bankrupties of 1825, which covered the country with wrecks and ruin.

Undoubtedly, the best relief on such occasions is O be found in removing the cause of the disease. So far as regards the General Government, this was attempted in 1837, and since, by gradually withdrawing from the use of banks and their pa-er in its fiscal operations, so as neither to stimuate nor contract their issues by other influences man ordinary business; and by urging on those, who might find their employment sometimes useful, closer regard in doing it, to the safe and sober inluences of the universal laws of trade, as well as in infl.xible adherence to the constitutional stanard of value.

While the General Government shall continue to pursue such a course, it will mitigate and check the evils which others produce, and which they alone, under the limitations in the Constitution, are able entirely to remove. At all events, it will faithfully perform a momentous duty, and exhibit a useful Example for imitation.

In a period of peace and comparative exemption From public debt, as well as from serious difficulty n financial operations, it would hardly seem proper to attempt more by assumptions of doubtful powe's, and by forced constructions in favor of measures by no means certain, if adopted, not to aggravate rather than diminish existing evils, and not to produce others of a character still more dangerous. Much less can it be considered respectful either to State rights or the people, and certainly not competent, in the opinion of the undersigned, to exercise such powers by creating moneyed corporations among them, which many of their number have repeatedly denounced as unconstitutional, and the authority to establish which was originally refused rather than confided to the General Government by the people and the States that formed it. But some other powers expressly conferred can, without question, be exercised further than has yet been done by Congress, and in such a manner as to produce very beneficial consequences upon the currency. Still, it is hoped they will never be pushed so as to trespass on ground really doubtful under the Constitution, and prevent the States from continuing to exercise all the legitimate authority they now possess as to banks and debt, however much it may be regretted that public opinion has not yet run with more strength against the abuses of both, and led to their prompt correc tion. It is not proposed at this time to go into the consideration of farther details on these points. But the danger to be guarded against now, stems to be rather of an opposite character from that of overaction by the General Government in the exercise of its express powers. On the con. trary, apprehensions exist that it may not tinue firm in the support of all which has already been accomplished in connection with the currency. If it should not, and should thus not aid to correct in any degree the rashness of many to force something like a formidable steam power into all kinds of business, without due guards to prevent constant and fatal explosions, myriads of individuals, as well as some corporations and States, are likely to be overwhelmed in still wider ruin, and will ere long probably look to no escape except the application of the sponge of a general bankrupt law to all private liabilities, and the unconstitutional assumption of the public ones by the General Government, so as to tax oppressively those portions of the community who have any thing left to pay for the losses and follies of the

rest.

con

A remedy which has been adverted to by some, and which consists in the creation of more credit, to cure the mischief of an existing excess of credit, or the formation of larger banks with like power of abuses, in order to correct smaller ones, must usually aggravate the evil; and therefore, where it is free from constitutional objections, may, in point · of expediency alone, well be discountenanced. A plan of free banking, adopted by the States,

properly guarded and secured by provisions similar to those recommended by the undersigned as long ago as 1836, with such others as reflection and experience may sanction, appears far preferable. But, independent of that, no changes in the present system, as to banks, seem worthy of strenuous exertions, except those whose direct object shall be to make safer, to restrict, control, and regulate better the institutions that already exist rather than to incorporate more. Above all, should public efforts be directed to strengthen the certainty of prompt specie payments as to all notes out, and of a nearer approach to uniformity in the amount of issues in similar states of trade; and of specie on hand, instead of multiplying them for speculation or cupidity, and thus keeping up a succession of expansions and contractions, which will only inflame the existing disorders, and render the continuance of great flactuations in all public as well as private affairs uvavoidable, endless, and ruinous. With much respect,

LEVI WOODBURY, Secretary of the Treasury. To the PRESIDENT of the Senate of the U. S. DEATH OF HON. JOHN S. SPENCE. Mr. MERRICK rose and addressed the Senate as follows:

Mr. PRESIDENT: Like all other human enjoyments, the gratification of meeting and interchanging our mutual congratulations again on this occasion, is not unmixed with painful and melancholy reflection. To me in an especial manner are the circumstances under which I kow rise to address you afflicting. Yonder vacant seat, sir, explains the cause. My most excellent and estimable colleague, the honorable JoHN S. SPENCE, who for the last several years filled that chair with honor to himself, and advantage to his country, is no more. He closed his useful and valuable life in the latter part of the month of October last, at his residence, in Worcester county, Maryland, surrounded by his amiable and interesting family, and at peace with God and man. He was, it will be remembered, in languid health during great part of our last session, and was often detained from his place here by that cause, which finally obliged him to leave the seat of Governmen', and retire to his own home some time before the adjournment, From the disease which then afflicted him he never perfectly recovered; though there was occasional relief from suffering, there was no effectual cure, and he has now left these and all sublunary scenes forever. He has at different periods of his life filled many of the most important and honorable trusts in the gift of the people of his State, always possessing, always deserving their entire confidence. His course through life was much more of the useful than brilliant order; possessed of a very large stock of sterling worth and virtue, there was about him nothing of ostentatious display. Ever content with the consciousness of doing his duty well and faithfully, he was careless of all other rewards. None knew him who did not honor and esteem him; and all who knew him will join with me in saying that he has left no purer man behind him. Mr. MERRICK then offered the following resolutions, which were unanimously adopted:

Resolved, That the members of the Senate, from a sincere desire of showing every mark of respect due to the memory of the honorable JоHN S. SPENCE, late a member thereof, will go into mourning, by wearing crape on the left arm for thirty days.

Resolved, That as an additional mark of respect for the memory of the honorable JOHN S. SPENCE, the Senate do now adjourn.

The Senate then adjourned.

HOUSE OF REPRESENTATIVES,

WEDNESDAY, Dec. 9, 1840.

After the Journal had been read,

Mr. RUSSELL offered the following resolutions: Resolved, That the daily hour to which this House stand adjourned, be 12 o'clock, meridian, until otherwise ordered.

Resolved, That the Clerk cause the members of this House to be furnished, during the present ɛession, with such newspapers as they may respectively direct, the expense for each member not to exceed at the rate of three daily papers per annum. Which resolutions were adopted.

ABOLITION OF SLAVERY.

Mr. ADAMS, in pursuance of notice given on yesterday, offered the following resolution:

Resolved, That the standing rule of this House, No. 21, adopted on the 28th of January last, in the following words:

"No petition, memorial, resolution, or other pa. per praying the abolition of slavery in the District of Columbia, or any State or Territory, or the slave trade between the States or Territories of the United States, in which it now exists, shall be received by this House, or entertained in any way whatever," be, and the same is hereby rescinded.

Mr. JENIFER moved to lay the resolution on the table

The SPEAKER reminded the gentleman from Maryland that the gentleman from Massachusetts was entitled to the floor.

Mr. ADAMS, after some preliminary remarks, which were imperfectly heard by the Reporter, hoped the gentleman from Maryland would not press the motion to lay on the table, as it was not his intention to debate the resolution at that time.

Mr. JENIFER said, that as the gentleman from Massachusetts had no intention of debating the resolution, he would withdraw his motion to lay on the table.

Mr. ADAMS, after stating his reasons for offering the resolution at so early a period of the session, observed that he was not willing the role in question should remain in force for a single hour longer, as, in his opinion, it was a direct violation of the Constitution of the United States.

Mr. BANKS did not rise for the purpose of discussing the resolution, but of expressing his regret that the gentleman from Massachusetts had thought proper to offer it. It would be recollected that at the last session the subject had been disposed of by a resolution solemnly ratified by the House; but as the gentleman was desirous of again agitating it, he Mr. B. was anxious to meet the question by a direct vole. He therefore moved to lay the resclution on the table.

And the question being on the motion to lay on the table,

Messrs. BANKS and ADAMS simultaneously demanded the yeas and nays.

Mr. LEWIS WILLIAMS begged leave to ask the gentleman from Virginia to withdraw for the present his motion to lay on the table. On so im portant a subject, he was desirous of the opinion of the whole House, whereas there were not now more than two-thirds of the members in their seats. He was extremely averse to having any partial expression of opinion on the subject, and therefore suggested a postponement of the resolution until that day week.

After the resolution had been again read by the CLERK,

Mr. LEWIS WILLIAMS further suggested to the gentleman from Virginia, that the gentleman from Maryland, [Mr. CoST JOHNSON ] on whose motion the rule in question had been adopted, was not now in his place. Under these circumstances, he thought it no more than fair that the subject should be postponed, in order that the House might have an opportunity of hearing what the gentleman from Maryland might have to say in defence of the rule.

Mr. ADAMS had not the sightest objection to the subject being, for the present, laid on the table, as being on the table it might be called up hereafter, when there should be a full House. He was perfectly willing to hear what the gentleman from Maryland, who had the honor of moving the adop

tion of the rule, might have to say in defence of it, provided the House would hear what he (Mr. A.) might have to say in reply.

The yeas and nays on the motion to lay on the table were then ordered, and being taken, resulted as follows:

YEAS-Messrs. Alford, John W. Allen, Andrews, Atherton, Banks, Bell, Blackwell, Bond, Boyd, Aaron V. Brown, Samp. son H. Butler, William O. Butler, William B. Campbell, Chapman, Chinn, Clifford, Crockett, Cross, John Davis, John W. Da. vis,G. Davis, Dawson, Deberry, Dellet, Earl, Eastman, Galbraith, Gentry, Gerry, Goggin,Green, Habersham, Jno. Hastings, Hawes, Hill of Va. Hill of N. C. Hillen, Hook, Jameson, Jenifer, Cave Johnson, Nathaniel Jones, Keim, Kemble, Kille, Leadbetter, Lucas, McCarty, McClellan, McClure, Marchand, Medill, Miller, Montanya, Montgomery, Sarnuel W. Morris, Morrow, Newhard, Nisbet, Parrish, Rayner, Samuels, Shepard, Albert Smith, Thomas Smith, Stanly, Steenrod, Strong, Stuart, Sumter, Sweeney, Taliaferro, Philip F. Thomas, John B. Thompson, David D. Wagener, Watterson, Weller, John White, Wick, Jared W. Williams, Lewis Williams, and Christopher H. Williams-82.

NAYS-Messrs. Adams, Baker, Barnard, Beatty, Boardman, Brewster, Briggs, Calhoun, Casey, Chittenden, Clark, James Cooper, Cranston, Edward Davies, Doe, Doig, Everett, tillmore, Fletcher, Gates, Goode, Granger, Hiland Hall, Augustus C Hand, Thomas Henry, Hopkins, Jackson, Charles Johnston, Lane, Lincoln, McCulloch, Mallory, Marvin, Mason, Mitcheli, Calvary Morris, Naylor, Osborne, Parmenter, Peck, Randall, Randolph, Rariden, Ridgway, Edward Rogers, Russell, Sergeant, Simonton, Slade, John Smith, Truman Smith, Tillinghast, Toland, Trumbull, Underwood, Peter J. Wagner, Henry Williams, and Winthrop-58.

So the resolution was laid upon the table.
After the vote was announced,

Mr. BEIRNE stated that the Clerk had just passed his name, when he entered the hall; and as it was contrary to the rules for him to vote at that time, he asked permission of the House that his name might be recorded on the important vote just taken.

General consent being necessary for that purpose, and some members olejecting,

Mr. BEIRNE withdrew his request.

Mr. TOLAND moved that the House adjourn. But the motion was not agreed to.

A message was received from the Senate by their Secretary, informing the House that a quorum of the Senate had assembled, and was ready o proceed to business.

Also, that the Senate had concurred in the resolution of the House, for the appointment of a Joint Committee of both Houses to wait upon the President of the United States, for the purpose of informing him that the two Houses had assembled, and were ready to receive any communication he might be pleased to make.

Also, that Messrs. WRIGHT and HUNTINGTON had been chosen to constitute the committee on the part of the Senate.

On motion of Mr. RUSSELL, it was

Resolved, Taat two Chaplains, of different denominations, be elected by Congress-one by each House-to serve during the present session, who shall interchange weekly.

The SPEAKER then laid before the House the Annual Message of the President of the United States;

Which having been read,

On motion of Mr. ATHERTON, it was Resolved, That the Message of the President of the United States be referred to the Committee of the Whole on the State of the Union, and that fifteen thousand copies thereof with the accompanying docvments, and five thousand copies thereof, without the accompanying documents, be printed for the use of the members of the House.

On motion of Mr. HOPKINS,

The House adjourned.

IN SENATE,

THURSDAY, December 10, 1840. Mr. CALHOUN, Mr. ROANE, Mr. WEBSTER, Mr. WHITE, and Mr. TALLMADGE, appeared in their places this morning.

Mr. MANGUM presented the credentials of the Hor. WILLIAM R. GRAHAM, elected by the General Assembly of the State of North Carolins, a Senator for the unexpired term occasioned by the resignation of the Hon. ROBERT STRANGE.

Mr. GRAHAM was then qualified and took his seat in the Senate.

The PRESIDENT communicated the credentials of the Hon. WILLIE P. MANGUM, elected by the Legislature of North Carolina, a Senator from that State, for the unexpired term occasioned by the

Mr. WALL submitted the following resolu Resolved, That a committee of three member appointed, who, together with a like number appointed by the House of Representatives, direct the expenditure of all moneys appropriate to purchase books for the Library of Congres The resolution was considered and agreed Messrs. WALL, PRESTON, and TAPPAN appointed committee on the part of the Senate.

Mr. NORVELL presented the petition of thony Ten Eyck and other citizens of Detroit the passage of a general bankrupt law; which wi referred to the Commi tee on the Judiciary.

Mr. NORVELL gave notice that to-morrow would ask leave to introduce bills of the following titles:

A bill granting to the State of Michigan a quar tity of land to aid said State in the construction t a canal around the Falls of Ste Marie;

A bill supplementary to an act to abolish impr sonment for debt in certain cases;

A bill to create an additional land office int State of Michigan, and for other purposes;

A bill to authorize the Secretary of the Treasury to procure steam-vessels for the revenue service, A bill authorizing the erection of certain highhouses and light-boats, and the establishment certain buoys and beacon lights;

A bill to amend and continue in force the act to incorporate the inhabitants of the city of Wash ington.

Mr. BENTON gave notice that at as early day as the attendance of the Senators would enable him, he would ask leave to introduce a bill for a permanent prospective pre-emption law in favor of the hardy and industrious settlers upon our public lands-the log cabin men. As the session was a short one, he was desirous of taking the earliest opportunity of asking leave to introduce this mes sure in favor of the tenants of log cabins, and he wished the vote on granting leave to be a test vot on the merits of the proposition.

Mr. FULTON gave notice that to-morrow he would ask leave to introduce the following bills:

A bill in relation to donations of land to certain persons in the State of Arkansas;

A bill to quiet the titles of certain land claimants in the States of Missouri and Arkansas, and for other purposes;

A bill to settle the title to certain tracts of land in the State of Arkansas;

A bill to authorize the inhabitants of township eight north, range thirty-two west, in the State of Arkansas, to enter a section of land in lieu of the sixteenth section in said township, upon condition that the same is surrendered to the United States for military purposes;

A bill authorizing the inhabitants of fractional township ten scuth, of range one east, in the State of Arkansas, to enter cue-half section of land for school purposes;

A bill for the relief of George W. Paschal;

A bill for the relief of James Smith of Arkansas; A bill for the relief of sundry citizens of Arkan. sas, who lost their improvements in consequence of a treaty between the United States and the Choctaw

Indians.

A bill allowing drawback upon foreign merchandise exported in the original packages to Chihuahua and Santa Fe, in Mexico.

Mr. CLAY of Alabama gave notice that to morrow he would ask leave to introduce the following bills: