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President[ Martin van Buren

         Date[ December 5, 1840


Fellow-Citizens of the Senate and House of Representatives:


Our devout gratitude is due to the Supreme Being for having graciously

continued to our beloved country through the vicissitudes of another year

the invaluable blessings of health, plenty, and peace. Seldom has this

favored land been so generally exempted from the ravages of disease or the

labor of the husbandman more amply rewarded, and never before have our

relations with other countries been placed on a more favorable basis than

that which they so happily occupy at this critical conjuncture in the

affairs of the world. A rigid and persevering abstinence from all

interference with the domestic and political relations of other States,

alike due to the genius and distinctive character of our Government and to

the principles by which it is directed; a faithful observance in the

management of our foreign relations of the practice of speaking plainly,

dealing justly, and requiring truth and justice in return as the best

conservatives of the peace of nations; a strict impartiality in our

manifestations of friendship in the commercial privileges we concede and

those we require from others--these, accompanied by a disposition as prompt

to maintain in every emergency our own rights as we are from principle

averse to the invasion of those of others, have given to our country and

Government a standing in the great family of nations of which we have just

cause to be proud and the advantages of which are experienced by our

citizens throughout every portion of the earth to which their enterprising

and adventurous spirit may carry them. Few, if any, remain insensible to

the value of our friendship or ignorant of the terms on which it can be

acquired and by which it can alone be preserved.


A series of questions of long standing, difficult in their adjustment and

important in their consequences, in which the rights of our citizens and

the honor of the country were deeply involved, have in the course of a few

years (the most of them during the successful Administration of my

immediate predecessor) been brought to a satisfactory conclusion; and the

most important of those remaining are, I am happy to believe, in a fair way

of being speedily and satisfactorily adjusted.


With all the powers of the world our relations are those of honorable

peace. Since your adjournment nothing serious has occurred to interrupt or

threaten this desirable harmony. If clouds have lowered above the other

hemisphere, they have not cast their portentous shadows upon our happy

shores. Bound by no entangling alliances, yet linked by a common nature and

interest with the other nations of mankind, our aspirations are for the

preservation of peace, in whose solid and civilizing triumphs all may

participate with a generous emulation. Yet it behooves us to be prepared

for any event and to be always ready to maintain those just and enlightened

principles of national intercourse for which this Government has ever

contended. In the shock of contending empires it is only by assuming a

resolute bearing and clothing themselves with defensive armor that neutral

nations can maintain their independent rights.


The excitement which grew out of the territorial controversy between the

United States and Great Britain having in a great measure subsided, it is

hoped that a favorable period is approaching for its final settlement. Both

Governments must now be convinced of the dangers with which the question is

fraught, and it must be their desire, as it is their interest, that this

perpetual cause of irritation should be removed as speedily as practicable.

In my last annual message you were informed that the proposition for a

commission of exploration and survey promised by Great Britain had been

received, and that a counter project, including also a provision for the

certain and final adjustment of the limits in dispute, was then before the

British Government for its consideration. The answer of that Government,

accompanied by additional propositions of its own, was received through its

minister here since your separation. These were promptly considered, such

as were deemed correct in principle and consistent with a due regard to the

just rights of the United States and of the State of Maine concurred in,

and the reasons for dissenting from the residue, with an additional

suggestion on our part, communicated by the Secretary of State to Mr. Fox.

That minister, not feeling himself sufficiently instructed upon some of the

points raised in the discussion, felt it to be his duty to refer the matter

to his own Government for its further decision. Having now been for some

time under its advisement, a speedy answer may be confidently expected.

From the character of the points still in difference and the undoubted

disposition of both parties to bring the matter to an early conclusion, I

look with entire confidence to a prompt and satisfactory termination of the

negotiation. Three commissioners were appointed shortly after the

adjournment of Congress under the act of the last session providing for the

exploration and survey of the line which separates the States of Maine and

New Hampshire from the British Provinces. They have been actively employed

until their progress was interrupted by the inclemency of the season, and

will resume their labors as soon as practicable in the ensuing year.


It is understood that their respective examinations will throw new light

upon the subject in controversy and serve to remove any erroneous

impressions which may have been made elsewhere prejudicial to the rights of

the United States. It was, among other reasons, with a view of preventing

the embarrassments which in our peculiar system of government impede and

complicate negotiations involving the territorial rights of a State that I

thought it my duty, as you have been informed on a previous occasion, to

propose to the British Government, through its minister at Washington, that

early steps should be taken to adjust the points of difference on the line

of boundary from the entrance of Lake Superior to the most northwestern

point of the Lake of the Woods by the arbitration of a friendly power in

conformity with the seventh article of the treaty of Ghent. No answer has

yet been returned by the British Government to this proposition.


With Austria, France, Prussia, Russia, and the remaining powers of Europe I

am happy to inform you our relations continue to be of the most friendly

character. With Belgium a treaty of commerce and navigation, based upon

liberal principles of reciprocity and equality, was concluded in March

last, and, having been ratified by the Belgian Government, will be duly

laid before the Senate. It is a subject of congratulation that it provides

for the satisfactory adjustment of a long-standing question of controversy,

thus removing the only obstacle which could obstruct the friendly and

mutually advantageous intercourse between the two nations. A messenger has

been dispatched with the Hanoverian treaty to Berlin, where, according to

stipulation, the ratifications are to be exchanged. I am happy to announce

to you that after many delays and difficulties a treaty of commerce and

navigation between the United States and Portugal was concluded and signed

at Lisbon on the 26th of August last by the plenipotentiaries of the two

Governments. Its stipulations are founded upon those principles of mutual

liberality and advantage which the United States have always sought to make

the basis of their intercourse with foreign powers, and it is hoped they

will tend to foster and strengthen the commercial intercourse of the two

countries.


Under the appropriation of the last session of Congress an agent has been

sent to Germany for the purpose of promoting the interests of our tobacco

trade.


The commissioners appointed under the convention for the adjustment of

claims of citizens of the United States upon Mexico having met and

organized at Washington in August last, the papers in the possession of the

Government relating to those claims were communicated to the board. The

claims not embraced by that convention are now the subject of negotiation

between the two Governments through the medium of our minister at Mexico.


Nothing has occurred to disturb the harmony of our relations with the

different Governments of South America. I regret, however, to be obliged to

inform you that the claims of our citizens upon the late Republic of

Colombia have not yet been satisfied by the separate Governments into which

it has been resolved.


The charge d'affaires of Brazil having expressed the intention of his

Government not to prolong the treaty of 1828, it will cease to be

obligatory upon either party on the 12th day of December, 1841, when the

extensive commercial intercourse between the United States and that vast

Empire will no longer be regulated by express stipulations.


It affords me pleasure to communicate to you that the Government of Chili

has entered into an agreement to indemnify the claimants in the case of the

Macectonian for American property seized in 1819, and to add that

information has also been received which justifies the hope of an early

adjustment of the remaining claims upon that Government.


The commissioners appointed in pursuance of the convention between the

United States and Texas for marking the boundary between them have,

according to the last report received from our commissioner, surveyed and

established the whole extent of the boundary north along the western bank

of the Sabine River from its entrance into the Gulf of Mexico to the

thirty-second degree of north latitude. The commission adjourned on the

16th of June last, to reassemble on the 1st of November for the purpose of

establishing accurately the intersection of the thirty-second degree of

latitude with the western bank of the Sabine and the meridian line thence

to Red River. It is presumed that the work will be concluded in the present

season.


The present sound condition of their finances and the success with which

embarrassments in regard to them, at times apparently insurmountable, have

been overcome are matters upon which the people and Government of the

United States may well congratulate themselves. An overflowing Treasury,

however it may be regarded as an evidence of public prosperity, is seldom

conducive to the permanent welfare of any people, and experience has

demonstrated its incompatibility with the salutary action of political

institutions like those of the United States. Our safest reliance for

financial efficiency and independence has, on the contrary, been found to

consist in ample resources unencumbered with debt, and in this respect the

Federal Government occupies a singularly fortunate and truly enviable

position.


When I entered upon the discharge of my official duties in March, 1837, the

act for the distribution of the surplus revenue was in a course of rapid

execution. Nearly $28,000,000 of the public moneys were, in pursuance of

its provisions, deposited with the States in the months of January, April,

and July of that year. In May there occurred a general suspension of specie

payments by the banks, including, with very few exceptions, those in which

the public moneys were deposited and upon whose fidelity the Government had

unfortunately made itself dependent for the revenues which had been

collected from the people and were indispensable to the public service.


This suspension and the excesses in banking and commerce out of which it

arose, and which were greatly aggravated by its occurrence, made to a great

extent unavailable the principal part of the public money then on hand,

suspended the collection of many millions accruing on merchants' bonds, and

greatly reduced the revenue arising from customs and the public lands.

These effects have continued to operate in various degrees to the present

period, and in addition to the decrease in the revenue thus produced two

and a half millions of duties have been relinquished by two biennial

reductions under the act of 1833, and probably as much more upon the

importation of iron for railroads by special legislation.


Whilst such has been our condition for the last four years in relation to

revenue, we have during the same period been subjected to an unavoidable

continuance of large extraordinary expenses necessarily growing out of past

transactions, and which could not be immediately arrested without great

prejudice to the public interest. Of these, the charge upon the Treasurer

in consequence of the Cherokee treaty alone, without adverting to others

arising out of Indian treaties, has already exceeded $5,000,000; that for

the prosecution of measures for the removal of the Seminole Indians, which

were found in progress, has been nearly fourteen millions, and the public

buildings have required the unusual sum of nearly three millions.


It affords me, however, great pleasure to be able to say that from the

commencement of this period to the present day every demand upon the

Government, at home or abroad, has been promptly met. This has been done

not only without creating a permanent debt or a resort to additional

taxation in any form, but in the midst of a steadily progressive reduction

of existing burdens upon the people, leaving still a considerable balance

of available funds which will remain in the Treasury at the end of the

year. The small amount of Treasury notes, not exceeding $4,500,000, still

outstanding, and less by twenty-three millions than the United States have

in deposit with the States, is composed of such only as are not yet due or

have not been presented for payment. They may be redeemed out of the

accruing revenue if the expenditures do not exceed the amount within which

they may, it is thought, be kept without prejudice to the public interest,

and the revenue shall prove to be as large as may justly be anticipated.


Among the reflections arising from the contemplation of these

circumstances, one, not the least gratifying, is the consciousness that the

Government had the resolution and the ability to adhere in every emergency

to the sacred obligations of law, to execute all its contracts according to

the requirements of the Constitution, and thus to present when most needed

a rallying point by which the business of the whole country might be

brought back to a safe and unvarying standard--a result vitally important

as well to the interests as to the morals of the people. There can surely

now be no difference of opinion in regard to the incalculable evils that

would have arisen if the Government at that critical moment had suffered

itself to be deterred from upholding the only true standard of value,

either by the pressure of adverse circumstances or the violence of

unmerited denunciation. The manner in which the people sustained the

performance of this duty was highly honorable to their fortitude and

patriotism. It can not fail to stimulate their agents to adhere under all

circumstances to the line of duty and to satisfy them of the safety with

which a course really right and demanded by a financial crisis may in a

community like ours be pursued, however apparently severe its immediate

operation.


The policy of the Federal Government in extinguishing as rapidly as

possible the national debt, and subsequently in resisting every temptation

to create a new one, deserves to be regarded in the same favorable light.

Among the many objections to a national debt, the certain tendency of

public securities to concentrate ultimately in the coffers of foreign

stockholders is one which is every day gathering strength. Already have the

resources of many of the States and the future industry of their citizens

been indefinitely mortgaged to the subjects of European Governments to the

amount of twelve millions annually to pay the constantly accruing interest

on borrowed money--a sum exceeding half the ordinary revenues of the whole

United States. The pretext which this relation affords to foreigners to

scrutinize the management of our domestic affairs, if not actually to

intermeddle with them, presents a subject for earnest attention, not to say

of serious alarm. Fortunately, the Federal Government, with the exception

of an obligation entered into in behalf of the District of Columbia, which

must soon be discharged, is wholly exempt from any such embarrassment. It

is also, as is believed, the only Government which, having fully and

faithfully paid all its creditors, has also relieved itself entirely from

debt. To maintain a distinction so desirable and so honorable to our

national character should be an object of earnest solicitude. Never should

a free people, if it be possible to avoid it, expose themselves to the

necessity of having to treat of the peace, the honor, or the safety of the

Republic with the governments of foreign creditors, who, however well

disposed they may be to cultivate with us in general friendly relations,

are nevertheless by the law of their own condition made hostile to the

success and permanency of political institutions like ours. Most

humiliating may be the embarrassments consequent upon such a condition.

Another objection, scarcely less formidable, to the commencement of a new

debt is its inevitable tendency to increase in magnitude and to foster

national extravagance. He has been an unprofitable observer of events who

needs at this day to be admonished of the difficulties which a government

habitually dependent on loans to sustain its ordinary expenditures has to

encounter in resisting the influences constantly exerted in favor of

additional loans; by capitalists, who enrich themselves by government

securities for amounts much exceeding the money they actually advance--a

prolific source of individual aggrandizement in all borrowing countries; by

stockholders, who seek their gains in the rise and fall of public stocks;

and by the selfish importunities of applicants for appropriations for works

avowedly for the accommodation of the public, but the real objects of which

are too frequently the advancement of private interests. The known

necessity which so many of the States will be under to impose taxes for the

payment of the interest on their debts furnishes an additional and very

cogent reason why the Federal Governments should refrain from creating a

national debt, by which the people would be exposed to double taxation for

a similar object. We possess within ourselves ample resources for every

emergency, and we may be quite sure that our citizens in no future exigency

will be unwilling to supply the Government with all the means asked for the

defense of the country. In time of peace there can, at all events, be no

justification for the creation of a permanent debt by the Federal

Government. Its limited range of constitutional duties may certainly under

such circumstances be performed without such a resort. It has, it is seen,

been avoided during four years of greater fiscal difficulties than have

existed in a similar period since the adoption of the Constitution, and one

also remarkable for the occurrence of extraordinary causes of

expenditures.


But to accomplish so desirable an object two things are indispensable:

First, that the action of the Federal Government be kept within the

boundaries prescribed by its founders, and, secondly, that all

appropriations for objects admitted to be constitutional, and the

expenditure of them also, be subjected to a standard of rigid but

well-considered and practical economy. The first depends chiefly on the

people themselves--the opinions they form of the true construction of the

Constitution and the confidence they repose in the political sentiments of

those they select as their representatives in the Federal Legislature; the

second rests upon the fidelity with which their more immediate

representatives and other public functionaries discharge the trusts

committed to them. The duty of economizing the expenses of the public

service is admitted on all hands; yet there are few subjects upon which

there exists a wider difference of opinion than is constantly manifested in

regard to the fidelity with which that duty is discharged. Neither

diversity of sentiment nor even mutual recriminations upon a point in

respect to which the public mind is so justly sensitive can well be

entirely avoided, and least so at periods of great political excitement. An

intelligent people, however, seldom fail to arrive in the end at correct

conclusions in such a matter. Practical economy in the management of public

affairs can have no adverse influence to contend with more powerful than a

large surplus revenue, and the unusually large appropriations for 1837 may

without doubt, independently of the extraordinary requisitions for the

public service growing out of the state of our Indian relations, be in no

inconsiderable degree traced to this source. The sudden and rapid

distribution of the large surplus then in the Treasury and the equally

sudden and unprecedentedly severe revulsion in the commerce and business of

the country, pointing with unerring certainty to a great and protracted

reduction of the revenue, strengthened the propriety of the earliest

practicable reduction of the public expenditures.


But to change a system operating upon so large a surface and applicable to

such numerous and diversified interests and objects was more than the work

of a day. The attention of every department of the Government was

immediately and in good faith directed to that end, and has been so

continued to the present moment. The estimates and appropriations for the

year 1838 (the first over which I had any control) were somewhat

diminished. The expenditures of 1839 were reduced $6,000,000. Those of

1840, exclusive of disbursements for public debt and trust claims, will

probably not exceed twenty-two and a half millions, being between two and

three millions less than those of the preceding year and nine or ten

millions less than those of 1837. Nor has it been found necessary in order

to produce this result to resort to the power conferred by Congress of

postponing certain classes of the public works, except by deferring

expenditures for a short period upon a limited portion of them, and which

postponement terminated some time since--at the moment the Treasury

Department by further receipts from the indebted banks became fully assured

of its ability to meet them without prejudice to the public service in

other respects. Causes are in operation which will, it is believed, justify

a still further reduction without injury to any important national

interest. The expenses of sustaining the troops employed in Florida have

been gradually and greatly reduced through the persevering efforts of the

War Department, and a reasonable hope may be entertained that the necessity

for military operations in that quarter will soon cease. The removal of the

Indians from within our settled borders is nearly completed. The pension

list, one of the heaviest charges upon the Treasury, is rapidly diminishing

by death. The most costly of our public buildings are either finished or

nearly so, and we may, I think, safely promise ourselves a continued

exemption from border difficulties.


The available balance in the Treasury on the 1st of January next is

estimated at $ 1,500,000. This sum, with the expected receipts from all

sources during the next year, will, it is believed, be sufficient to enable

the Government to meet every engagement and have a suitable balance, in the

Treasury at the end of the year, if the remedial measures connected with

the customs and the public lands heretofore recommended are adopted and the

new appropriations by Congress shall not carry the expenditures beyond the

official estimates.


The new system established by Congress for the safe-keeping of the public

money, prescribing the kind of currency to be received for the public

revenue and providing additional guards and securities against losses, has

now been several mouths in operation. Although it might be premature upon

an experience of such limited duration to form a definite opinion in regard

to the extent of its influences in correcting many evils under which the

Federal Government and the country have hitherto suffered, especially those

that have grown out of banking expansions, a depreciated currency, and

official defalcations, yet it is but right to say that nothing has occurred

in the practical operation of the system to weaken in the slightest degree,

but much to strengthen, the confident anticipations of its friends. The

grounds of these have been heretofore so fully explained as to require no

recapitulation. In respect to the facility and convenience it affords in

conducting the public service, and the ability of the Government to

discharge through its agency every duty attendant on the collection,

transfer, and disbursement of the public money with promptitude and

success, I can say with confidence that the apprehensions of those who felt

it to be their duty to oppose its adoption have proved to be unfounded. On

the contrary, this branch of the fiscal affairs of the Government has been,

and it is believed may always be, thus carried on with every desirable

facility and security. A few changes and improvements in the details of the

system, without affecting any principles involved in it, will be submitted

to you by the Secretary of the Treasury, and will, I am sure, receive at

your hands that attention to which they may on examination be found to be

entitled.


I have deemed this brief summary of our fiscal affairs necessary to the due

performance of a duty specially enjoined upon me by the Constitution. It

will serve also to illustrate more fully the principles by which I have

been guided in reference to two contested points in our public policy which

were earliest in their development and have been more important in their

consequences than any that have arisen under our complicated and difficult,

yet admirable, system of government. I allude to a national debt and a

national bank. It was in these that the political contests by which the

country has been agitated ever since the adoption of the Constitution in a

great measure originated, and there is too much reason to apprehend that

the conflicting interests and opposing principles thus marshaled will

continue as heretofore to produce similar if not aggravated consequences.

Coming into office the declared enemy of both, I have earnestly endeavored

to prevent a resort to either.


The consideration that a large public debt affords an apology, and produces

in some degree a necessity also, for resorting to a system and extent of

taxation which is not only oppressive throughout, but is likewise so apt to

lead in the end to the commission of that most odious of all offenses

against the principles of republican government, the prostitution of

political power, conferred for the general benefit, to the aggrandizement

of particular classes and the gratification of individual cupidity, is

alone sufficient, independently of the weighty objections which have

already been urged, to render its creation and existence the sources of

bitter and unappeasable discord. If we add to this its inevitable tendency

to produce and foster extravagant expenditures of the public moneys, by

which a necessity is created for new loans and new burdens on the people,

and, finally, refer to the examples of every government which has existed

for proof, how seldom it is that the system, when once adopted and

implanted in the policy of a country, has failed to expand itself until

public credit was exhausted and the people were no longer able to endure

its increasing weight, it seems impossible to resist the conclusion that no

benefits resulting from its career, no extent of conquest, no accession of

wealth to particular classes, nor any nor all its combined advantages, can

counterbalance its ultimate but certain results--a splendid government and

an impoverished people.


If a national bank was, as is undeniable, repudiated by the framers of the

Constitution as incompatible with the rights of the States and the

liberties of the people; if from the beginning it has been regarded by

large portions of our citizens as coming in direct collision with that

great and vital amendment of the Constitution which declares that all

powers not conferred by that instrument on the General Government are

reserved to the States and to the people; if it has been viewed by them as

the first great step in the march of latitudinous construction, which

unchecked would render that sacred instrument of as little value as an

unwritten constitution, dependent, as it would alone be, for its meaning on

the interested interpretation of a dominant party, and affording no

security to the rights of the minority--if such is undeniably the case,

what rational grounds could have been conceived for anticipating aught but

determined opposition to such an institution at the present day.


Could a different result have been expected when the consequences which

have flowed from its creation, and particularly from its struggles to

perpetuate its existence, had confirmed in so striking a manner the

apprehensions of its earliest opponents; when it had been so clearly

demonstrated that a concentrated money power, wielding so vast a capital

and combining such incalculable means of influence, may in those peculiar

conjunctures to which this Government is unavoidably exposed prove an

overmatch for the political power of the people themselves; when the true

character of its capacity to regulate according to its will and its

interests and the interests of its favorites the value and production of

the labor and property of every man in this extended country had been so

fully and fearfully developed; when it was notorious that all classes of

this great community had, by means of the power and influence it thus

possesses, been infected to madness with a spirit of heedless speculation;

when it had been seen that, secure in the support of the combination of

influences by which it was surrounded, it could violate its charter and set

the laws at defiance with impunity; and when, too, it had become most

apparent that to believe that such an accumulation of powers can ever be

granted without the certainty of being abused was to indulge in a fatal

delusion?


To avoid the necessity of a permanent debt and its inevitable consequences

I have advocated and endeavored to carry into effect the policy of

confining the appropriations for the public service to such objects only as

are clearly within the constitutional authority of the Federal Government;

of excluding from its expenses those improvident and unauthorized grants of

public money for works of internal improvement which were so wisely

arrested by the constitutional interposition of my predecessor, and which,

if they had not been so checked, would long before this time have involved

the finances of the General Government in embarrassments far greater than

those which are now experienced by any of the States; of limiting all our

expenditures to that simple, unostentatious, and economical administration

of public affairs which is alone consistent with the character of our

institutions; of collecting annually from the customs, and the sales of

public lands a revenue fully adequate to defray all the expenses thus

incurred; but under no pretense whatsoever to impose taxes upon the people

to a greater amount than was actually necessary to the public service

conducted upon the principles I have stated.


In lieu of a national bank or a dependence upon banks of any description

for the management of our fiscal affairs, I recommended the adoption of the

system which is now in successful operation. That system affords every

requisite facility for the transaction of the pecuniary concerns of the

Government; will, it is confidently anticipated, produce in other respects

many of the benefits which have been from time to time expected from the

creation of a national bank, but which have never been realized; avoid the

manifold evils inseparable from such an institution; diminish to a greater

extent than could be accomplished by any other measure of reform the

patronage of the Federal Government--a wise policy in all governments, but

more especially so in one like ours, which works well only in proportion as

it is made to rely for its support upon the unbiased and unadulterated

opinions of its constituents; do away forever all dependence on corporate

bodies either in the raising, collecting, safekeeping, or disbursing the

public revenues, and place the Government equally above the temptation of

fostering a dangerous and unconstitutional institution at home or the

necessity of adapting its policy to the views and interests of a still more

formidable money power abroad.


It is by adopting and carrying out these principles under circumstances the

most arduous and discouraging that the attempt has been made, thus far

successfully, to demonstrate to the people of the United States that a

national bank at all times, and a national debt except it be incurred at a

period when the honor and safety of the nation demand the temporary

sacrifice of a policy which should only be abandoned in such exigencies,

are not merely unnecessary, but in direct and deadly hostility to the

principles of their Government and to their own permanent welfare.


The progress made in the development of these positions appears in the

preceding sketch of the past history and present state of the financial

concerns of the Federal Government. The facts there stated fully authorize

the assertion that all the purposes for which this Government was

instituted have been accomplished during four years of greater pecuniary

embarrassment than were ever before experienced in time of peace, and in

the face of opposition as formidable as any that was ever before arrayed

against the policy of an Administration; that this has been done when the

ordinary revenues of the Government were generally decreasing as well from

the operation of the laws as the condition of the country, without the

creation of a permanent public debt or incurring any liability other than

such as the ordinary resources of the Government will speedily discharge,

and without the agency of a national bank.


If this view of the proceedings of the Government for the period it

embraces be warranted by the facts as they are known to exist; if the Army

and Navy have been sustained to the full extent authorized by law, and

which Congress deemed sufficient for the defense of the country and the

protection of its rights and its honor; if its civil and diplomatic service

has been equally sustained; if ample provision has been made for the

administration of justice and the execution of the laws; if the claims upon

public gratitude in behalf of the soldiers of the Revolution have been

promptly met and faithfully discharged; if there have been no failures in

defraying the very large expenditures growing out of that long-continued

and salutary policy of peacefully removing the Indians to regions of

comparative safety and prosperity; if the public faith has at all times and

everywhere been most scrupulously maintained by a prompt discharge of the

numerous, extended, and diversified claims on the Treasury--if all these

great and permanent objects, with many others that might be stated, have

for a series of years, marked by peculiar obstacles and difficulties, been

successfully accomplished without a resort to a permanent debt or the aid

of a national bank, have we not a right to expect that a policy the object

of which has been to sustain the public service independently of either of

these fruitful sources of discord will receive the final sanction of a

people whose unbiased and fairly elicited judgment upon public affairs is

never ultimately wrong?


That embarrassments in the pecuniary concerns of individuals of unexampled

extent and duration have recently existed in this as in other commercial

nations is undoubtedly true. To suppose it necessary now to trace these

reverses to their sources would be a reflection on the intelligence of my

fellow-citizens. Whatever may have been the obscurity in which the subject

was involved during the earlier stages of the revulsion, there can not now

be many by whom the whole question is not fully understood.


Not deeming it within the constitutional powers of the General Government

to repair private losses sustained by reverses in business having no

connection with the public service, either by direct appropriations from

the Treasury or by special legislation designed to secure exclusive

privileges and immunities to individuals or classes in preference to or at

the expense of the great majority necessarily debarred from any

participation in them, no attempt to do so has been either made,

recommended, or encouraged by the present Executive.


It is believed, however, that the great purposes for the attainment of

which the Federal Government was instituted have not been lost sight of.

Intrusted only with certain limited powers, cautiously enumerated,

distinctly specified, and defined with a precision and clearness which

would seem to defy misconstruction, it has been my constant aim to confine

myself within the limits so clearly marked out and so carefully guarded.

Having always been of opinion that the best preservative of the union of

the States is to be found in a total abstinence from the exercise of all

doubtful powers on the part of the Federal Government rather than in

attempts to assume them by a loose construction of the Constitution or an

ingenious perversion of its words, I have endeavored to avoid recommending

any measure which I had reason to apprehend would, in the opinion even of a

considerable minority of my fellow-citizens, be regarded as trenching on

the rights of the States or the provisions of the hallowed instrument of

our Union. Viewing the aggregate powers of the Federal Government as a

voluntary concession of the States, it seemed to me that such only should

be exercised as were at the time intended to be given.


I have been strengthened, too, in the propriety of this course by the

conviction that all efforts to go beyond this tend only to produce

dissatisfaction and distrust, to excite jealousies, and to provoke

resistance. Instead of adding strength to the Federal Government, even when

successful they must ever prove a source of incurable weakness by

alienating a portion of those whose adhesion is indispensable to the great

aggregate of united strength and whose voluntary attachment is in my

estimation far more essential to the efficiency of a government strong in

the best of all possible strength--the confidence and attachment of all

those who make up its constituent elements.


Thus believing, it has been my purpose to secure to the whole people and to

every member of the Confederacy, by general, salutary, and equal laws

alone, the benefit of those republican institutions which it was the end

and aim of the Constitution to establish, and the impartial influence of

which is in my judgment indispensable to their preservation. I can not

bring myself to believe that the lasting happiness of the people, the

prosperity of the States, or the permanency of their Union can be

maintained by giving preference or priority to any class of citizens in the

distribution of benefits or privileges, or by the adoption of measures

which enrich one portion of the Union at the expense of another; nor can I

see in the interference of the Federal Government with the local

legislation and reserved rights of the States a remedy for present or a

security against future dangers.


The first, and assuredly not the least, important step toward relieving the

country from the condition into which it had been plunged by excesses in

trade, banking, and credits of all kinds was to place the business

transactions of the Government itself on a solid basis, giving and

receiving in all cases value for value, and neither countenancing nor

encouraging in others that delusive system of credits from which it has

been found so difficult to escape, and which has left nothing behind it but

the wrecks that mark its fatal career.


That the financial affairs of the Government are now and have been during

the whole period of these wide-spreading difficulties conducted with a

strict and invariable regard to this great fundamental principle, and that

by the assumption and maintenance of the stand thus taken on the very

threshold of the approaching crisis more than by any other cause or causes

whatever the community at large has been shielded from the incalculable

evils of a general and indefinite suspension of specie payments, and a

consequent annihilation for the whole period it might have lasted of a just

and invariable standard of value, will, it is believed, at this period

scarcely be questioned.


A steady adherence on the part of the Government to the policy which has

produced such salutary results, aided by judicious State legislation and,

what is not less .important, by the industry, enterprise, perseverance, and

economy of the American people, can not fail to raise the whole country at

an early period to a state of solid and enduring prosperity, not subject to

be again overthrown by the suspension of banks or the explosion of a

bloated credit system. It is for the people and their representatives to

decide whether or not the permanent welfare of the country (which all good

citizens equally desire, however widely they may differ as to the means of

its accomplishment) shall be in this way secured, or whether the management

of the pecuniary concerns of the Government, and by consequence to a great

extent those of individuals also, shall be carried back to a condition of

things which fostered those contractions and expansions of the currency and

those reckless abuses of credit from the baleful effects of which the

country has so deeply suffered--a return that can promise in the end no

better results than to reproduce the embarrassments the Government has

experienced, and to remove from the shoulders of the present to those of

fresh victims the bitter fruits of that spirit of speculative enterprise to

which our countrymen are so liable and upon which the lessons of experience

are so unavailing. The choice is an important one, and I sincerely hope

that it may be wisely made.


A report from the Secretary of War, presenting a detailed view of the

affairs of that Department, accompanies this communication.


The desultory duties connected with the removal of the Indians, in which

the Army has been constantly engaged on the northern and western frontiers

and in Florida, have rendered it impracticable to carry into full effect

the plan recommended by the Secretary for improving its discipline. In

every instance where the regiments have been concentrated they have made

great progress, and the best results may be anticipated from a continuance

of this system. During the last season a part of the troops have been

employed in removing Indians from the interior to the territory assigned

them in the West--a duty which they have performed efficiently and with

praiseworthy humanity--and that portion of them which has been stationed in

Florida continued active operations there throughout the heats of summer.


The policy of the United States in regard to the Indians, of which a

succinct account is given in my message of 1838, and of the wisdom and

expediency of which I am fully satisfied, has been continued in active

operation throughout the whole period of my Administration. Since the

spring of 1837 more than 40,000 Indians have been removed to their new

homes west of the Mississippi, and I am happy to add that all accounts

concur in representing the result of this measure as eminently beneficial

to that people.


The emigration of the Seminoles alone has been attended with serious

difficulty and occasioned bloodshed, hostilities having been commenced by

the Indians in Florida under the apprehension that they would be compelled

by force to comply with their treaty stipulations. The execution of the

treaty of Paynes Landing, signed in 1832, but not ratified until 1834, was

postponed at the solicitation of the Indians until 1836, when they again

renewed their agreement to remove peaceably to their new homes in the West.

In the face of this solemn and renewed compact they broke their faith and

commenced hostilities by the massacre of Major Dade's command, the murder

of their agent, General Thompson, and other acts of cruel treachery. When

this alarming and unexpected intelligence reached the seat of Government,

every effort appears to have been made to reenforce General Clinch, who

commanded the troops then in Florida. General Eustis was dispatched with

reenforcements from Charleston, troops were called out from Alabama,

Tennessee, and Georgia, and General Scott was sent to take the command,

with ample powers and ample means. At the first alarm General Gaines

organized a force at New Orleans, and without waiting for orders landed in

Florida, where he delivered over the troops he had brought with him to

General Scott.


Governor Call was subsequently appointed to conduct a summer campaign, and

at the close of it was replaced by General Jesup. These events and changes

took place under the Administration of my predecessor. Notwithstanding the

exertions of the experienced officers who had command there for eighteen

months, on entering upon the administration of the Government I found the

Territory of Florida a prey to Indian atrocities. A strenuous effort was

immediately made to bring those hostilities to a close, and the army under

General Jesup was reenforced until it amounted to 10,000 men, and furnished

with abundant supplies of every description. In this campaign a great

number of the enemy were captured and destroyed, but the character of the

contest only was changed. The Indians, having been defeated in every

engagement, dispersed in small bands throughout the country and became an

enterprising, formidable, and ruthless banditti. General Taylor, who

succeeded General Jesup, used his best exertions to subdue them, and was

seconded in his efforts by the officers under his command; but he too

failed to protect the Territory from their depredations. By an act of

signal and cruel treachery they broke the truce made with them by General

MacGrab, who was sent from Washington for the purpose of carrying into

effect the expressed wishes of Congress, and have continued their

devastations ever since. General Armistead, who was in Florida when General

Taylor left the army by permission, assumed the command, and after active

summer operations was met by propositions for peace, and from the fortunate

coincidence of the arrival in Florida at the same period of a delegation

from the Seminoles who are happily settled west of the Mississippi and are

now anxious to persuade their countrymen to join them there hopes were for

some time entertained that the Indians might be induced to leave the

Territory without further difficulty. These hopes have proved fallacious

and hostilities have been renewed throughout the whole of the Territory.

That this contest has endured so long is to be attributed to causes beyond

the control of the Government. Experienced generals have had the command of

the troops, officers and soldiers have alike distinguished themselves for

their activity, patience, and enduring courage, the army has been

constantly furnished with supplies of every description, and we must look

for the causes which have so long procrastinated the issue of the contest

in the vast extent of the theater of hostilities, the almost insurmountable

obstacles presented by the nature of the country, the climate, and the wily

character of the savages.


The sites for marine hospitals on the rivers and lakes which I was

authorized to select and cause to be purchased have all been designated,

but the appropriation not proving sufficient, conditional arrangements only

have been made for their acquisition. It is for Congress to decide whether

these Conditional purchases shall be sanctioned and the humane intentions

of the law carried into full effect.


The Navy, as will appear from the accompanying report of the Secretary, has

been usefully and honorably employed in the protection of our commerce and

citizens in the Mediterranean, the Pacific, on the coast of Brazil, and in

the Gulf of Mexico. A small squadron, consisting of the frigate

Constellation and the sloop of war Boston, under Commodore Kearney, is now

on its way to the China and Indian seas for the purpose of attending to our

interests in that quarter, and Commander Aulick, in the sloop of war

Yorktown, has been instructed to visit the Sandwich and Society islands,

the coasts of New Zealand and Japan, together with other ports and islands

frequented by our whale ships, for the purpose of giving them countenance

and protection should they be required. Other smaller vessels have been and

still are employed in prosecuting the surveys of the coast of the United

States directed by various acts of Congress, and those which have been

completed will shortly be laid before you.


The exploring expedition at the latest date was preparing to leave the Bay

of Islands, New Zealand, in further prosecution of objects which have thus

far been successfully accomplished. The discovery of a new continent, which

was first seen in latitude 66° 2' south, longitude 154° 27' east,

and afterwards in latitude 66° 31' south, longitude 153° 40' east,

by Lieutenants Wilkes and Hudson, for an extent of 1,800 miles, but on

which they were prevented from landing by vast bodies of ice which

encompassed it, is one of the honorable results of the enterprise.

Lieutenant Wilkes bears testimony to the zeal and good conduct of his

officers and men, and it is but justice to that officer to state that he

appears to have performed the duties assigned him with an ardor, ability,

and perseverance which give every assurance of an honorable issue to the

undertaking.


The report of the Postmaster-General herewith transmitted will exhibit the

service of that Department the past year and its present condition. The

transportation has been maintained during the year to the full extent

authorized by the existing laws; some improvements have been effected which

the public interest seemed urgently to demand, but not involving any

material additional expenditure; the contractors have generally performed

their engagements with fidelity; the postmasters, with few exceptions, have

rendered their accounts and paid their quarterly balances with promptitude,

and the whole service of the Department has maintained the efficiency for

which it has for several years been distinguished.


The acts of Congress establishing new mail routes and requiring more

expensive services on others and the increasing wants of the country have

for three years past carried the expenditures something beyond the accruing

revenues, the excess having been met until the past year by the surplus

which had previously accumulated. That surplus having been exhausted and

the anticipated increase in the revenue not having been realized owing to

the depression in the commercial business of the country, the finances of

the Department exhibit a small deficiency at the close of the last fiscal

year. Its resources, however, are ample, and the reduced rates of

compensation for the transportation service which may be expected on the

future lettings from the general reduction of prices, with the increase of

revenue that may reasonably be anticipated from the revival of commercial

activity, must soon place the finances of the Department in a prosperous

condition.


Considering the unfavorable circumstances which have existed during the

past year, it is a gratifying result that the revenue has not declined as

compared with the preceding year, but, on the contrary, exhibits a small

increase, the circumstances referred to having had no other effect than to

check the expected income.


It will be seen that the Postmaster-General suggests certain improvements

in the establishment designed to reduce the weight of the mails, cheapen

the transportation, insure greater regularity in the service, and secure a

considerable reduction in the rates of letter postage--an object highly

desirable. The subject is one of general interest to the community, and is

respectfully recommended to your consideration.


The suppression of the African slave trade has received the continued

attention of the Government. The brig Dolphin and schooner Grampus have

been employed during the last season on the coast of Africa for the purpose

of preventing such portions of that trade as were said to be prosecuted

under the American flag. After cruising off those parts of the coast most

usually resorted to by slavers until the commencement of the rainy season,

these vessels returned to the United States for supplies, and have since

been dispatched on a similar service.


From the reports of the commanding officers it appears that the trade is

now principally carried on under Portuguese colors, and they express the

opinion that the apprehension of their presence on the slave coast has in a

great degree arrested the prostitution of the American flag to this inhuman

purpose. It is hoped that by continuing to maintain this force in that

quarter and by the exertions of the officers in command much will be done

to put a stop to whatever portion of this traffic may have been carried on

under the American flag and to prevent its use in a trade which, while it

violates the laws, is equally an outrage on the rights of others and the

feelings of humanity. The efforts of the several Governments who are

anxiously seeking to suppress this traffic must, however, be directed

against the facilities afforded by what are now recognized as legitimate

commercial pursuits before that object can be fully accomplished.


Supplies of provisions, water casks, merchandise, and articles connected

with the prosecution of the slave trade are, it is understood, freely

carried by vessels of different nations to the slave factories, and the

effects of the factors are transported openly from one slave station to

another without interruption or punishment by either of the nations to

which they belong engaged in the commerce of that region. I submit to your

judgments whether this Government, having been the first to prohibit by

adequate penalties the slave trade, the first to declare it piracy, should

not be the first also to forbid to its citizens all trade with the slave

factories on the coast of Africa, giving an example to all nations in this

respect which if fairly followed can not fail to produce the most effective

results in breaking up those dens of iniquity.


M. VAN BUREN


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