352 SAFETY FUND BANKS, NEW YORK. Safety Fund Banks, New York. § 7. If the Bank Commissioners shall at any time upon examination believe the assets of any such moneyed corre-poration to be of a doubtful character, so as in any degree to impair its capital, they may in their discretion prohibit any such corporation from making any dividend for such period as they may deem prudent, and the safety of the public may require. An act to prevent fraudulent practices in the management of moneyed incorporations and to provide for a prompt replenishing of the Safety Fund. [Passed May 26, 1841.] § 8. It shall be the duty of the Secretary of State to publish with the Session Laws of the year 1841, a chapter con The People of the State of New York, represented in taining the "Act to create a fund for the benefit of the Senate and Assembly, do enact as follows ; 1. It shall not be lawful for any moneyed corporation having banking powers, and subject to the provisions of the safety fund act, to hypothecate or pledge its own notes, or bills, designed for circulation as security for any money borrowed, or money paid or advanced for its use, beyond an amount which added to its bank notes then in actual circulation, shall exceed the sum which the said bank may lawfully issue. § 2. No such moneyed corporation shall guarantee or endorse, so as to become liable upon any of its discounted notes, bills or obligations, beyond the sum which added to its other loans and discounts, shall exceed the amount of loans and discounts which such corporation may legally make. § 3. All bank bills or circulating notes of every such moneyed corporation which are not in the possession of such corporation, or of its agent or correspondent for its own exclusive use and benefit, and subject to its uncondi tional order and disposal, shall be deemed and hereby are declared to be in circulation, and shall in all cases be in cluded in its accounts, and otherwise as bills in circulation. § 4. Any officer of any such moneyed corporation who shall intentionally violate any part of the provisions of the preceding sections, shall be deemed and adjudged guilty of a misdemeanor, and shall upon conviction be fined at the discretion of the Court, not exceeding one thousand dollars, or imprisoned in a county jail not less than six nor more than twelve months, or both. § 5. Whenever the comptroller shall lawfully apply any moneys belonging to the safety fund to the payment of the debts of any banking corporation, the safety fund shall be reduced by the amount of the moneys so applied below the sun required in the fourth section of the act, entitled "An act to create a fund for the benefit of creditors of certain moneyed corporations, and for other purposes;" and in such case every moneyed corporation which shall be subject to said act, shall, on or before the first day of January in every year thereafter, pay to the treasurer of this State such sum as may be required by the comptroller, not exceeding onehalf of one per cent. on its capital stock, as provided in said act. Such annual payments shall continue to be made by every corporation subject to said act, until the aforesaid fund shall be reimbursed and made to amount to the sum provided in the fourth section of said act; after which such annual payments shall be suspended until it shall become necessary again to resort to the said fund for the payment of the debts of any other corporation which may become insolvent, in which case the said payments shall be resumed in manner aforesaid, and so on from time to time as occasion § 6. Corporations which shall have paid to the treasurer creditors of certain moneyed corporations, and for other JOHN C. SPENCER, Secretary of State. Death among Cattle. Owing to the extreme backwardness of the Spring, and the consequent want of provender, we learn that many valuable cattle have died in Kent county, Maryland, and other parts adjacent. We are not aware of any serious injury nearer home, from the same cause, but the same calamity has occurred in Virginia, New York, and many other places. The winter set in very early, as our readers may remember, with an extraordinary snow storm early in December, and stormy in the extreme. The winter of 1840-41, and the from that time till the middle of May, it has been cold and Spring of 1841, will long be remembered by the Agriculturists of the United States as a season of atmospherical pressure and embarrassments in farming. New Route. [Delaware Gazette. The steamer Vermillion arrived at Buffalo a few days since, had among her large cargo, forty hogsheads of Ohio Tobacco, destined for the Baltimore market. The Buffalo Journal says "it is a long journey via Buffalo and the Erie Canal, yet the most speedy and economical route that can be obtained for produce that is seeking a market." N. Y. Times. Remarkably short Passage. The ship Christoval Colon, Capt. Smith, which arrived yesterday from Havana, left that port at seven o'clock in the Sandy Hook on the morning of Wednesday the 12th inst. evening of Wednesday, the 5th May, and took a pilot off at 12 o'clock; thus making the passage in 156 hours, or six and a half days; the shortest passage we believe, on record. The UNITED STATES COMMERCIAL AND The price to subscribers is STATISTICAL REGISTER, is published every Wednesday, at No. 79 Dock street. Five Dollars per annum, payable on the 1st of January of each year. No subscription received for less than a year.— Subscribers out of the principal cities to pay in advance. PRINTED BY WILLIAM F. GEDDES, COMMERCIAL & STATISTICAL REGISTER. VOL. IV. EDITED BY SAMUEL HAZARD. PHILADELPHIA, WEDNESDAY, JUNE 9, 1841. PRESIDENT'S MESSAGE. To the Senate and House of Representatives of the United States. The late President-Extra Session. Fellow-Citizens-You have been assembled in your respective halls of legislation, under a Proclamation bearing the signature of the illustrious citizen, who was so lately called by the direct suffrages of the people, to the discharge of the important functions of their chief Executive officeupon the expiration of a single month from the day of his installation, he has paid the great debt of nature, leaving behind him a name associated with the recollection of numerous benefits conferred upon the country, during a long life of patriotic devotion. With this public bereavement are connected other considerations which will not escape the attention of Congress. The preparations necessary for his removal to the seat of Government in view of a residence of four years, must have devolved upon the late President heavy expenditures, which, if permitted to burthen the limited resources of his private fortune, may tend to the serious embarrassment of his surviving family; and it is therefore respectfully submitted to Congress whether the ordinary principles of justice would not dictate the propriety of its legislative interposition. By the provisions of the fundamental law, the powers and duties of the high station to which he was elected, have devolved upon me; and in the dispositions of the representatives of the States and of the people, will be found, to a great extent, a solution of the problem to which our institutions are for the first time subjected. No. 23. citizens who have claims on the Government of Spain, founded on express treaty stipulations; and a hope is indulged that the representations which have been made to that Government on this subject, may lead, ere long, to beneficial results. Case of Alexander McLeod. A correspondence has taken place between the Secretary of State and the Minister of Her Britannic Majesty accredited to this Government on the subject of Alexander McLeod's indictment and imprisonment, copies of which are herewith communicated to Congress. In addition to what appears from these papers, it may bo proper to state, that Alexander McLeod has been heard by the Supreme Court of the State of New York, on his mo tion to be discharged from imprisonment, and that the decision of that Court has not as yet been pronounced. Commerce of the country. The Secretary of State has addressed to me a paper upon two subjects, interesting to the commerce of the country, which will receive my consideration, and which I have the honor to communicate to Congress. So far as it depends upon the course of this Government our relations of good will and friendship will be sedulously cultivated with all nations. The true American policy will be found to consist in the exercise of a spirit of justice to be manifested in the discharge of all our international obligations to the weakest of the family of nations as well as to the most powerful. Occasional conflicts of opinion may arise, but when the discussions incident to them are conducted in the language of truth, and with a strict regard to justice, the scourge of war will for the most part be avoided. The time ought be regarded as having gone by when a resort to arms is to be esteemed as the only proper arbiter of national differences. Increase in our population. In entering upon the duties of this office, I did not feel that it would be becoming in me to disturb what had been ordered by my lamented predecessor. Whatever, therefore, may have been my opinion originally as to the propriety of convening Congress at so early a day from that of its late adjournment, I found a new and controlling inducement not to interfere with the patriotie desires of the The census recently taken shows a regularly progressive late President, in the novelty of the situation in which I was increase in our population. Upon the breaking out of the so unexpectedly placed. My first wish, under such circum- war of the revolution our numbers scarcely equalled 3,000,stances, would necessarily have been to have called to my 000 of souls, they already exceed 17,000,000, and will conaid, in the administration of public affairs, the combined tinue to progress in a ratio which duplicates in a period of wisdom of the two Houses of Congress, in order to take about 23 years. The old states contain a territory sufficient their counsel and advice as to the best mode of extricating in itself to maintain a population of additional millions, and the Government and the country from the embarrassments the most populous of the new States may even yet be reweighing heavily on both. I am then most happy in find-garded as but partially settled, while of the new lands on ing myself so soon, after my accession to the Presidency, surrounded by the immediate representatives of the States and people. Foreign Relations. No important changes having taken place in our foreign relations since the last session of Congress, it is not deemed necessary, on this occasion, to go into a detailed statement in regard to them. I am happy to say that I see nothing to destroy the hope of being able to preserve peace. Treaty with Portugal. The ratification of the treaty with Portugal has been duly ex changed between the two Governments. This Government has not been inattentive to the interests of those of our VOL. IV.-45 this side of the Rocky Mountains, to say nothing of the immense region which stretches from the base of those mountains to the mouth of the Columbia river, about 770,000,000 of acres, ceded and unceded, still remain to be brought into market. We hold out to the people of other countries an invitation to come and settle among us as members of our rapidly growing family, and for the blessings which we offer them, we require of them to look upon our country as their country, and to unite with us in the great task of preserving our institutions and thereby perpetuating our liberties. No motive exists for foreign conquests-we desire but to reclaim our almost illimitable wilderness, and to introduce into their depths the lights of civilization. While we shall at all times be prepared to vindicate the national honor, our most earnest desire will be to maintain an unbroken peace. 354 PRESIDENT'S MESSAGE. Extension of our Empire-Safety of our Institutions. In presenting the foregoing views, I cannot withhold the expression of the opinion, that there exists nothing in the extension of our empire, over our acknowleged possessions to excite the alarm of the patriot for the safety of our institutions. The Federative system, leaving to each State the care of its domestic concerns, and devolving on the Federal Government those of general import, admits in safety of the greatest expansion; but, at the same time, I deem it proper to add, that there will be found to exist, at all times, an imperious necessity for restraining all the functionaries of this Government within the range of their respective powers, thereby preserving a just balance between the powers grant ed to this Government and those reserved to the States and to the People. Finances. From the report of the Secretary of the Treasury you will perceive that the fiscal means, present and accruing, are insufficient to supply the wants of the Government for the current year. The balance in the Treasury on the 4th day of March last, not covered by outstanding drafts, and exclusive of trust funds, is estimated at $860,000. This includes the sum of $215,000 deposited in the mint and its branches to procure metal for coining and in the process of coinage, and which could not be withdrawn without inconvenience -thus leaving subject to draft, in the various depositories, the sum of $645,000. By virtue of two several acts of Congress, the Secretary of the Treasury was authorized to issue, on and after the fourth day of March last, Treasury notes to the amount of $5,413,000, making an aggregate available fund of $6,058,000 on hand. But this fund was chargeable with outstanding Treasury notes redeemable in the current year, and interest thereon, to the estimated amount of $5,280,000. There is also thrown upon the Treasury the payment of a large amount of demands accrued in whole, or in part, in former years, which will exhaust the available means of the Treasury and leave the accruing revenue, reduced as it is in amount, burthened with debt, and charged with the current expenses of the Government. The aggregate amount of outstanding appropriations, on the fourth day of March last, was $33,429,616 50, of which $24,210,000, will be required during the current year, and there will also be required, for the use of the War Department, additional appropriations to the amount of $2,511,132 98, the special objects of which will be seen by reference to the Report of the Secretary of War. The anticipated means of the Treasury are greatly inadequate to this demand. The receipts from customs for the last three quarters of the last year and the first quarter of the present year, amounted to $12,100,000. The receipts for lands for the same time to $2,742,450 60, showing an average revenue from both sources of $1,236,870 per month. A gradual expansion of trade, growing out of a restoration of confidence, together with a reduction in the expenses of collecting and punctuality on the part of collecting officers, may cause an addition to the monthly receipts from the customs-they are estimated, for the residue of the year, from the 4th of March, at $12,000,000. The receipts from the public lands, for the same time, are estimated at $2,500,000, and from miscellaneous sources, at $170,000, making an aggregate of available funds within the year of $14,670,000, which will leave a probable deficit of $11,406,132 98. To meet this, some temporary provision is necessary until the amount can be absorbed by the excess of revenues which are anticipated to accrue at no distant day. 000, of funds available on the 28th ultimo, an unissued bal- Supply of the wants of the Government-Compromise Act. In order to supply the wants of the Government, an intelligent constituency in view of their best interest, will without hesitation, submit to all necessary burthens. But it is, nevertheless, important so to impose them as to avoid defeating the just expectations of the country growing out of pre-existing laws. The act of the 28 March, 1833, commonly called the Compromise Act, should not be altered, except under urgent necessities, which are not believed at this time to exist. One year only remains to complete the series of reductions provided for by that law, at which time provisions made by the same law, and which then will be brought actively in aid of the manufacturing interests of the Union, will not fail to produce the most beneficial results. Under a system of discriminating duties, imposed for purposes of revenue, in unison with the provisions of existing laws, it is to be hoped that our policy will in the future be fixed and permanent-so as to avoid those constant fluctuations which defeat the very objects they have in view. We shall thus best maintain a position, which, while it will enable us the more readily to meet the advances of other countries calculated to promote our trade and commerce, will at the same time leave in our own hands the means of retaliating, with greater effect, unjust regulations. Fiscal Agent-Paper Circulation-Currency. In intimate connection with the question of revenue, is that which makes provision for a suitable fiscal agent capable of adding increased facilities in the collection and disbursement of the public revenues, rendering more secure their custody, and consulting a true economy in the great multiplied and delicate operations of the Treasury Department. Upon such an agent depends, in an eminent degree the establishment of a currency of uniform value, which is of so great importance to all the essential interests of society, and on the wisdom to be manifested in its creation much depends. So intimately interwoven are its operations, not only with the interests of individuals, but with those of the States, that it may be regarded, to a great degree, as controlling both. If paper be used as the chief medium of circulation and the power be vested in the Government of issuing it at pleasure, either in the form of Treasury drafts or any other; or, if Banks be used as the public depositaries, with liberty to regard all surplus from day to day, as so much added to their active capital, prices are exposed to constant fluctuations, and industry to severe suffering. In the one case political considerations directed to party purposes may control, while excessive cupidity may prevail in the other. The public is thus constantly liable to imposition. Expansions and contractions may follow each other in rapid succession-the one engendering a reckless spirit of adventure and speculation, which embraces States as well as individuals-the other causing a fall in prices, and accomplishing an entire change in the aspect of affairs. Stocks of all kinds rapidly decline, individuals are ruined, and States embarrassed-even in their efforts to meet with punctuality the interest on their debts. Such unhappily is the condition of things now existing in the United States.These effects may readily be traced to the causes above referred to. The public revenues being removed from the then There will fall due within the next three months, Treasury Bank of the United States, under an order of a late Presinotes of the issues of 1840, including interest, about $2,850,- dent, were placed in selected State Banks, which, actuated 000. There is chargcable in the same period for arrearages by the double motive of conciliating the Government and for taking the 6th Census, $294,000, and the estimated ex- augmenting their profits to the greatest possible extent, enpenditures for the current service are about $8,100,000, mak-larged extravagantly their discounts, thus enabling all other ing the aggregate demands upon the Treasury, prior to the existing Banks to do the same. Large dividends were declared, which stimulating the cupidity of capitalists, caused first of September next, about $11,340,000. a rush to be made to the Legislatures of the respective States for similar acts of incorporation, which by many of the States, The ways and means in the Treasury, and estimated to accrue within the above named period, consist of about $694, under a temporary infatuation, were readily granted—and thus the augmentation of the circulating medium, consisting almost exclusively of paper, produced a most fatal delusion. An illustration derived from the land sales of the period alluded to, will serve best to show the effect of the whole system. The average sales of the public lands for a period of ten years prior to 1834, had not much exceeded $2,000,000 per annum. In 1834, they attained in round numbers to the amount of $6,000,000, in the succeeding year of 1835, they reached $16,000,000, and the next year of 1836, they amounted to the enormous sum of $25,000,000-thus crowding into the short space of three years upwards of seventythree years' purchase of the public domain. So apparent had become the necessity of arresting this course of things, that the Executive Department assumed the highly questionable power of discriminating in the funds to be used in payment, by different classes of public debtors. A discrimination which was doubtlessly designed to correct this most ruinous state of things, by the exaction of specie in all payments for the public lands, but which could not at once arrest the tide which had so strongly set in. Hence the demands for specie became unceasing, and corresponding prostration rapidly ensued under the necessities, created with the Banks, to curtail their discounts, and thereby to reduce their circulation. I recur to these things with no disposition to censure preexisting administrations of the Government, but simply in exemplification of the truth of the position which I have assumed. If, then, any fiscal agent which may be created, shall be placed without due restrictions, either in the hands of the administrators of the Government, or those of private individuals, the temptation to abuse will prove to be resist less. Objects of political aggrandizement may seduce the first, and the promptings of a boundless cupidity will assail the last. Aided by the experience of the past, it will be the pleasure of Congress so to guard and fortify the public interests, in the creation of any new agent, as to place them, so far as human wisdom can accomplish it on a footing of perfect security. Within a few years past three different schemes have been before the country. The charter of the Bank of the United States expired by its own limitations in 1836; an effort was made to renew it which received the sanction of the two Houses of Congress, but the then President of the United States exercised his veto power, and the measure was defeated. A regard to truth requires me to say, that the President was fully sustained in the course he had taken by the popular voice. His successor to the Chair of State unqualifiedly pronounced his opposition to any new charter of a similar institution; and not only the popular election which brought him into power, but the elections through much of his term seemed clearly to indicate a concurrence with him in sentiment on the part of the people. After the public moneys were withdrawn from the United States Bank, they were placed in deposit with the State Banks, and the result of that policy has been before the country. To say nothing as to the question whether that experiment was made under propitious or adverse circumstances, it may safely be asserted that it did receive the unqualified condemnation of most of its early advocates, and it is believed was also condemned by the popular sentiment. The existing Sub-Treasury system does not seem to stand in higher favor with the people, but has recently been condemned in a manner too plainly indicated to admit of a doubt. Thus, in the short period of eight years, the popular voice may be regarded as having successively condemned each of the three schemes of finance to which I have adverted. As to the first it was introduced at a time (1816) when the State banks, then comparatively few in number, had been forced to suspend specie payments, by reason of the war which had previously prevailed with Great Britain. Whether, if the United States Bank charter which expired in 1811 had been renewed in due season, it would have been enabled to continue specie payments during the war and the disastrous period to the commerce of the country which immediately succeeded, is, to say the least, problematical; and whether the United States Bank of 1816, pro duced a restoration of specie payments, or the same was accomplished through the instrumentality of other means, was a matter of some difficulty at that time to determine.Certain it is that, for the first years of the operation of that Bank, its course was as disastrous as for the greater part of its subsequent career it became eminently successful.As to the second, the experiment was tried with a redundant Treasury, which continued to increase until it seemed to be the part of wisdom to distribute the surplus revenue among the States, which, operating at the same time with the specie circular, and the causes before adverted to, caused them to suspend specie payments, and involved the country in the greatest embarrassment. And, as to the third, if carried through all the stages of its transmutation, from paper and specie to nothing but the precious metals, to say nothing of the insecurity of the public moneys, its injurious effects have been anticipated by the country in its unqualified condemnation. What is now to be regarded as the judgment of the American People on this whole subject, I have no accurate means of determining but by appealing to their more immediate representatives. The late contest, which terminated in the election of General Harrison to the Presi dency, was decided on principles well known and openly declared; and, while the Sub-Treasury received in the result the most decided condemnation, yet no other scheme of finance seemed to have been concurred in. To you, then, who have come more directly from the body of our common constituents, I submit the entire question, as best qualified to give a full exposition of their wishes and opinions. I shall be ready to concur with you in the adoption of such system as you may propose, reserving to myself the ultimate power of rejecting any measure which may in my view of it conflict with the Constitution, or otherwise jeopard the prosperity of the country; a power which I could not part with even if I would, but which I will not believe any act of yours will call into requisition. Unlimited creation of Banks by the States. I cannot avoid recurring, in connexion with this subject, to the necessity which exists for adopting some suitable measure whereby the unlimited creation of banks by the States may be corrected in future. Such result can be most readily achieved by the consent of the States, to be expressed in the form of a compact among themselves, which they can only enter into with the consent and approbation of this Government; a consent which might, in the present emergency of the public demands, justifiably be given in advance of any action by the States as an inducement to such action upon terms well defined by the act of tender. Such a measure, addressing itself to the calm reflection of the States, would find in the experience of the past, and the condition of the present, much to sustain it. And it is greatly to be doubted whether any scheme of finance can prove for any length of time successful while the States shall continue in the unrestrained exercise of the power of creating banking corporations. This power can only be limited by their consent. Distribution of the proceeds of the Public Lands. With the adoption of a financial agency of a satisfactory character, the hope may be indulged that the country may once more return to a state of prosperity. Measures auxiliary thereto, and, in some measure, inseparably connected with its success, will doubtless claim the attention of Congress. Among such, a distribution of the proceeds of the sales of the public lands, provided such distribution does not force upon Congress the necessity of imposing upon commerce heavier burdens than those contemplated by the act of 1833, would act as an efficient remedial measure by being brought directly in aid of the States. As one sincerely devoted to the task of preserving a just balance in our system of government, by the maintenance of the States in a condition the most free and respectable, and in the full possession of all their power, I can no otherwise than feel desirous for their emancipation from the situation to which the pressure on their finances now subjects them. And, while I must repudiate as a measure founded in error, and want 356 PRESIDENT'S MESSAGE. with recent improvements in the science of gunnery and ing constitutional sanction, the slightest approach to an assumption by this Government of the debts of the States, yet I can see, in the distribution adverted to, much to recommend it. The compacts between the proprietor States and this Government expressly guaranty to the States all the benefits which may arise from the sales. The mode by True wisdom would, nevertheless, seem to dictate the newhich this is to be effected addresses itself to the discretion of Congress, as the trustee for the States; and its exercise, cessity of placing in perfect condition those fortifications after the most beneficial manner, is restrained by nothing in which are designed for the protection of our principal cities the grants or in the Constitution, so long as Congress shall and roadsteads. For the defence of our extended maritime consult that equality in the distribution which the compacts coast our chief reliance should be placed on our navy, aided require. In the present condition of some of the States, by those inventions which are destined to recommend themthe question of distribution may be regarded as substantial- selves to public adoption. But no time should be lost in If the placing our principal cities on the seaboard and the lakes in ly a question between direct and indirect taxation. a state of entire security from foreign assault. Separated distribution be not made in some form or other, the necessity will daily become more urgent with the debtor States as we are from the countries of the old world, and in much for a resort to an oppressive system of direct taxation, or unaffected by their policy, we are happily relieved from the their credit, and necessarily their power and influence, will necessity of maintaining large standing armies in times of be greatly diminished. The payment of taxes, after the peace. The policy which was adopted by Mr. Monroe, most inconvenient and oppressive mode, will be exacted in shortly after the conclusion of the late war with Great Briplace of contributions for the most part voluntarily made, tain, of preserving a regularly organized staff sufficient for the command of a large military force, should a necessity and therefore comparatively unoppressive. for one arise, is founded as well in economy as in true wisdom. Provision is thus made upon filling up the rank and file, which can readily be done on any emergency, for the introduction of a system of discipline both promptly and efficiently. All that is required in time of peace is to maintain a sufficient number of men to guard our fortifications, Our chief reliance must be placed on the to meet any sudden contingency, and to encounter the first shock of war. militia. They constitute the great body of national guards, and inspired by an ardent love of country, will be found ready at all times and at all seasons to repair with alacrity to its defence. It will be regarded by Congress, I doubt not, at a suitable time, as one of its highest duties to attend to their complete organization and discipline. The States are emphatically the constituents of this Government: and we should be entirely regardless of the objects held in view by them in the creation of this Government if we could be indifferent to their good. The happy effects of such a measure upon all the States would immediately be manifested. With the debtor States it would effect the relief to a great extent of the citizens from a heavy burden of direct taxation which presses with severity on the laboring classes, and would eminently assist in restoring the general prosperity. An immediate advance would take place in the price of the State securities, and the attitude of the States would become once more, as it should ever be, lofty and erect. With States laboring under no extreme pressure from debt, the fund which they would derive from this source would enable them to improve their condition in an eminent degree. So far as this Government is concerned, appropriations to domestic objects, approaching in amount the reve nue derived from the land sales, might be abandoned, and thus a system of unequal and therefore unjust legislation would be substituted by one dispensing equality to all the members of this confederacy. Whether such distribution should be made directly to the States in the proceeds of the sales, or in the form of profits by virtue of the operations of any fiscal agency having those proceeds as its basis, should such measure be contemplated by Congress, would well deserve its consideration. Nor would such disposition of the proceeds of the sales in any manner prevent Congress from time to time from passing all necessary pre-emption laws for the benefit of actual settlers, or from making any new arrangements as to the price of the public lands which might in future be esteemed desirable. Report from the Secretary of War. I beg leave particularly to call your attention to the accompanying report from the Secretary of War. Besides the present state of the war which has so long afflicted the Territory of Florida, and the various other matters of interest therein referred to, you will learn from it that the Secretary has instituted an inquiry into abuses, which promises to develop gross enormities in connexion with Indian treaties which have been negotiated, as well as in the expenditures for the removal and subsistence of the Indians. He represents, also, other irregularities of a serious nature that have grown up in the practice of the Indian Department, which will require the appropriation of upwards of $200,000 to correct, and which claim the immediate attention of Congress. Proper means of defending the Country. In reflecting on the proper means of defending the country, we cannot shut our eyes to the consequences which the introduction and use of the power of steam upon the ocean are likely to produce in wars between the maritime States. We cannot yet see the extent to which this power may be applied in belligerent operations, connecting itself as it does State of the Navy Pension Fund. The state of the navy pension fund requires the immediate attention of Congress. By the operation of the act of the 3d of March, 1837, entitled "an Act for the more equitable administration of the navy pension fund," that fund has been exhausted. It will be seen from the accompanying report of the Commissioner of pensions, that there will be required for the payment of navy pensioners on the first of July next, $84,006 06 1-3, and on the first of January, 1842, the sum of $60,000. In addition to these sums, about 6,000 dollars will be required to pay arrears of pensions, which will probably be allowed between the first of July and the first of January, 1842, making in the whole $150,006 06 1-3. To meet these payments, there is within the control of the department the sum of 28,040 dollars, leaving a deficit of $121,966 06 1-3. The public faith requires that immediate provision should be made for the payment of these sums. A new system of accountability in the Navy. In order to introduce into the navy a desirable efficiency, a new system of accountability may be found to be indispensably necessary. To mature a plan having for its object the accomplishment of an end so important, and to meet the just expectations of the country, require more time than has yet been allowed to the Secretary at the head of the department. The hope is indulged that by the time of your next regular session, measures of importance, in connexion with this branch of the public service, may be matured for your consideration. Post-Office Department. Although the laws regulating the Post-Office Department only require from the officer charged with its direction to report at the usual annual session of Congress, the Postmaster General has presented to me some facts connected with the financial condition of the Department which are deemed worthy the attention of Congress. By the accom. panying report of that officer, it appears that the existing liabilities of that Department beyond the means of payment |