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Texas.

red her fully invested with all the rights and attributes which properly belong to independent nations.

The same convention, on the 17th March, adopted a constitution, and provided for a Government ad interim, which took the place of the provisional Government. This constitution was confirmed by the voice of the people in their elections on the first Monday in this month, and the Government ad interim continues until the second Monday in December, when the President and Vice President elect will assume their constitutional duties, and thus perfect, to that extent, the intentions of the people.

The authority of sovereignty, even as to foreign nations, was very soon exercised by Texas after her provisional Government went into operation, and that too at the expense of some of our own citizens.

On the 2d of June last, the American schooner Watchman was captured in Coparo bay, with a cargo of bread, rice, and beans.

On the 19th of the same month, the schooners Comanche and Fanny Butler, similarly laden, were taken in the same neighborhood, and the cargoes of all condemned by the Rusé court for "consisting of articles for the comfort and subsistence of the Mexican army."

The value of the Watchman's invoice was about $4,000 00 That of the Comanche's 7,528 14 Of the Fanny Butler's 8,664 56

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On the 21st of July, the President proclaimed the blockade of Matamoras, the Brazos, Santiago, and all the neighboring estuaries. This included American vessels, and the trade, which is very considerable from our ports to the Rio Grande, particularly from New Orleans, was thus interrupted, and indeed cut off, until the 13th of August, when, upon my representations, the decree was rescinded. These proceedings would give rise to three propositions: First. Whether Mexico, so far from maintaining her ability to protect her own territory, as required by the law of nations, has not failed in that duty, and extended the injury to the commerce of the United States. Secondly. Whether, if Texas is not an integrant of Mexico, but a separate Government, Mexico has not directly violated her treaty of 1831, by allowing the subjects of an adjoining State to blockade her ports. And, third. If Texas is not a distinct Government, but still part of Mexico, whether the latter has not permitted her own subjects to commit acts in relation to the United States which, strictly speaking, amount to a state of imperfect war.

Though early plans were laid to support the Government, in part, by imposts, they were never carried into effect. The whole community were engaged in one occupation, which was war, and therefore it would have been only crippling the cause of the country to have taxed the necessaries that were introduced.

Custom districts were established, and collectors appointed; but, by general consent, the Government acquiesced in the suspension of the law, and to this day every thing is practically free of duty. The consumption of bread-stuffs, provisions, and clothing, is very great, and they are nearly all drawn from the United States.

The products of Texas are principally cotton and corn; the former is the most cultivated, on account of its superior value. This year there will be less than 10,000 bales; but if the country had been quiet there would have been 50,000. Abundance of fine cattle is raised with very little difficulty, and the climate and soil are adapted to the usual grain of our own country.

It is said that the sugar cane would thrive well here, but I should doubt it, though I believe, from personal observation, that the soil would yield abundant crops of indigo, and with but little trouble.

[24th CONG. 2d SESS.

The tonnage of Texas is, as might be expected for a country so new, very small. Heretofore part of the trade was carried on in Mexican shipping, and then the amount was much greater. At present they have not more than a dozen commercial vessels, including two or three steamboats.

I should say that if this country were in a tranquil condition, with an industrious population peaceably engaged in the cultivation of their rich lands, the raising of cattle, which are so abundant, and the associated pursuits of a settled people, properly organized by the restraints and protection of good laws, it would become, in a few years, a market for as much English, French, and other foreign productions, as any State in our Union. The rationale of this would easily appear, by carrying the mind through the vast region comprised within the limits of this country, looking to the population that must necessarily be drawn to it under a proper system, the proximity of our Western and Northwestern territory, and to the interior of Mexico itself, which at no very distant day may be furnished through this medium. But, as things now are, I doubt whether any of those fruits of good order will ever be matured.

The present Government is as well administered as its resources and the appliances of the country will admit; but as it is just in its pupilage, with no strength but confidence in the cause, no help but that which sympathy gives, and is not yet harmoniously adjusted in the motions of its respective branches, it may still be considered a mere experiment upon independence, which the loss of friends or of a single battle may disperse to the winds.

In a former letter it was said that the residuum of public domain, after all deductions for military services and "head rights," would be one hundred millions of acres. That statement was made upon the views of the Secretary of the Treasury. Since then I have obtained an original estimate, addressed to the auditor by a scientific gentleman who has officiated as a surveyor, in which he reports that Texas possesses 249,900 square miles, or 160 millions of square acres, and allows 80 millions to be taken up and covered with claims; which amount, he says, "is too large, no doubt, by one half." This would leave 80 millions of acres unencumbered for the State; and, supposing only one fourth of it to be available, would yield, at fifty cents per acre, ten millions of dollars. I should presume this calculation as to quantity is incorrect, as the Mexican Government supposed Texas proper to contain, in 1835, only 104,500,000 acres, and the territory between the Nueces and the Rio Grande, claimed by this country since then, will hardly augment the quantity by 60 millions.

Texas, within the present limits, is nearly four times larger than the largest State in our Union, (Virginia,) and two hundred times larger than Rhode Island, the smallest.

The separation of Texas, as an independent State, from Mexico, it is said, will awaken the attention of some of the European Powers against the slave trade, which her citizens will carry on; but it is contended that this assertion must fail, when it is seen that the constitution prohibits that commerce.

Even if it did not, it is argued that it has been judicially settled, in the highest tribunal in the United States and in England, that whatever may be said against that traffic upon the score of moral consequences, it has nevertheless been protected by the laws of all commercial countries, has been claimed by each and allowed by each, and cannot, therefore, be considered as contrary to the law of nations. Those States whose municipal enactments make that kind of commerce unlawful can of course punish their own subjects who may be engaged in it, but they cannot interfere with the subjects of other Powers found in that trade, although those nations have also prohibited it, because the civil tribunals of one country will not enforce the penal laws of another.

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The administration and people entertain no apprehension that any foreign nation will interfere in their contest with Mexico, as they rely upon the policy and example heretofore set by the United States and Great Britain in the struggle between Spain and her revolted colonies, in which both the former Governments protested against the right of the allied Powers to interpose by forcible means.

Our Government went further, and held that any attempt to extend the peculiar political system of Europe to this continent would be considered dangerous to the peace of its own States. The Texians hold that the only exception to the rule against the rights of interfering by neutral nations, is, when it is in aid of the oppressed, and where the general interests of humanity are infringed by the outrages or evils of despotism; and that Texas, having for years suffered under that condition, is entitled, like the Greeks, to the commiseration of all civilized nations. They say that the revolutionary state of Mexico, since her separation from Spain, has been so boisterous in action and so contradictory in policy, that in examining how far this province has the right to a separate national existence, it necessarily involves the inquiry of whether Mexico herself has not ceased to possess a distinct sovereignty; that the material attributes of a nation are ability to enforce the laws and protect her own institutions; that even in cases of a neutrality, where an abuse of the neutral territory proceeds from the weakness of the sovereign, and her inability to defend it, the party injured acquires authority and may extend his jurisdiction over it; that much more so may that distinct portion of a large State which is found adhering to a written constitution, while the rest are separated into revolting factions, be entitled to an exclusive control over her own limits and people, because the State has not only failed to protect that particular portion of the country, but has taken part in a revolution to overthrow the very principles she was pledged to support. Texas, instead of rising in arms against Mexico, is said to have remained adhering to the republican system, while Mexico deserted it.

Arguments are used, based upon the history of Mexico, to show that her citizens proper were never capable of appreciating liberty in its political American sense, and that her pretended institutions of liberal government and laws, from the time of her separation from Spain to the present day, have existed only in the forms of delusive promises that were always broken to the hope. The first important act of the first President, after the separation from Spain, was to bring the Government back to an order of things more oppressive than that of its ancient rulers; and Iturbide, instead of continuing as President of a republic, regenerated a monarchy, and proclaimed himself an Emperor. Either from an imagined love for freedom vaguely understood, a belief that a constitutional government could be adapted to the habits and notions of the people, or from restless ambition, it seems that General Santa Anna was the first to overthrow the imperial government, the first to aid in the establishment of a republic, and, finally, the first in its destruction.

Bustamenté was in favor of a consolidated form of gov ernment, and General Santa Anna for a complete republic; the latter declared for the constitution of Vera Cruz-in 1832 deposed Bustamenté, as well as the Vice President Farias-elected General Barrazan in his place-became himself President of the republic, and, in 1835, repealed the constitution by military orders, which re-established the very system, under new rules, that had caused the revolution of 1823.

The question is then asked by the Texians, is a nation which is incapable of protecting any form of government from overthrow, by a few military leaders, entitled to hold the peaceable citizens of a distant part of her country forever subject to all the evils of anarchy ?

Other arguments are advanced to show that, besides all this, the incongruity between their citizens, who have been practically accustomed to the protection of the laws as well as to liberty in its true meaning, and those untutored subjects of Mexico who, combining a variety of races in one blood, lose the indentity of all, and submit, in the ignorance of their rights and their power, to the authority of a few who are bold, is another reason why the people have a moral right to establish a separate State. Politically considered, they contend that, as allegiance and protection are reciprocal, and Mexico has failed to aid them against the inroads and murders of the Indians, has overturned the republican constitution, the establishment and promised continuance of which were the first inducements to emigration, has for years exhibited a determination to annihilate the colonial settlements, and has, by a law of 1830, excluded the admission of Americans of the North into Texas, Mexico has forfeited her claim to allegiance, which ceased when her protection failed, lost her right of sovereignty over Texas when she violated her compact, and became an enemy to her own citizens when she excluded their brethren from the country.

The only resource left to these citizens in the periods of partial calm when they were oppressed by the laws, or in those boisterous times when the ambition of opposing leaders kept the country in revolution, was to adhere quietly to the principles of a free government, which they had been invited to join, and to wait patiently in the hope of their re-establishment.

Long after the federal system was destroyed, the Texians continued to petition Mexico to restore it, and only took up arms when she was obliged to defend herself against those who made war upon republicanism, so that her present position proceeds not from her own revolutions, but from those of Mexico. In this state of things, the feelings and hopes of the citizens revert to the United States for sympathy, not only because of consanguinity, but because they are pioneers in the new country, carrying with them, in the common cause of humanity, the light of free government, borrowed from their ancient homes. If we view the condition of Texas by comparison with other Governments that are established, it will be found greatly deficient in many of the materials of a nation; but as the independence of States is considered equal in the eye of international law, whatever may be their relative power, and Texas has not only maintained herself within her own boundary, but manifested an ability to invade that of her enemy, it would result that she has thus far accomplished, though in a limited degree, the criterion of sovereignty, in being a "nation which governs itself, independent of foreign Powers."

The only President who has been permitted to exercise his functions for the appointed time, and who has retired to the shades, if not to the enjoyment of private life, unscathed by revolutions, was Victoria, the successor of Iturbide. The United States have, in common with every other Manuel Gomez Pedrazo was elected by a small majority nation, a right to enlarge their resources in the proper acover General Guerrero; but Santa Anna, at the head of the quirement of territory, the extension of their commerce, the military, declared the election void, and proclaimed Guer-increase of revenue, and the promotion of alliances; but, as rero President. Pedrazo fled, and Guerrero was confirmed an offset to this, in reference to the present question, may by Congress. He was invested with the powers of a dic-be considered the doubtful policy in the application of the tator, and refusing to lay them down, Anastasio Busta- rule, from the infancy of Texas, the uncertainty of her abilmenté assumed the presidency, and Guerrero was shot. ity to continue her efforts to the full fruition of freedom, the

Madison's Works.

custom of neutrals not to interfere with belligerants, and the convention between the United States and Mexico, which inculcates the establishment of friendly relations upon a firm basis.

These, and other considerations referred to in my former communications, constitute the reason for pausing in expressing the opinion that Texas is now capable of performing the obligations of an independent nation.

The rigid course of duty, which requires a candid statement from facts, prevails over partialities that prompt a different picture; and though a regard for truth, a sense of national integrity, and a desire to manifest their strict exercise by the United States, may justly delay the period for enrolling Texas in the list of nations, her citizens, and those who participate in the principles of her cause, may be consoled by the certainty that, without the aid of any Government, the career of political freedom which is extending throughout the world will of its own speed accomplish what caution now withholds.

Foreign policy, the conventional faith of nations, or the efforts of Mexico, may detain Texas lingering in her embryo state for many years; but the fertility of her soil, the remoteness of her situation, which affords an asylum from the angry subjects that often agitate the Northern and Southern parts of our country, and, above all, the current of emigration, which, through the whole West, looks like the advent of the oppressed of all nations seeking to build up free altars in a new hemisphere, must disenthral her by a moral force which no power nor potentates can resist. I have the honor to be your obedient servant, HENRY M. MORFIT.

To the Hon. JOHN FORSYTH,

Secretary of State.

MR. MADISON AND HIS WORKS.

Message of the President of the United States to Congress on the subject.

To the Senate and House of Representatives:

I transmit herewith, to Congress, copies of my correspondence with Mrs. Madison, produced by the resolution adopted at the last session by the Senate and House of Representatives, on the decease of her venerated husband. The occasion seems to be appropriate to present a letter from her on the subject of the publication of a work of great political interest and ability, carefully prepared by Mr. Madison's own hand, under circumstances that give it claims to be considered as little less than official.

[24th CoNG. 2d SESS.

death of Mr. Madison on file in the Department of State.
By application at the offices of the Secretary of the Senate
and Clerk of the House of Representatives, the enclosed
certified copy of a set of resolutions has been procured.
These resolutions, being joint, should have been enrolled,
signed by the presiding officers of the two Houses, and
submitted for the executive approbation. By referring to
the proceedings on the death of General Washington,
such a course appears to have been thought requisite; but
in this case it has been deemed unnecessary, or has been
omitted accidentally. The value of the public expression
of sympathy would be so much diminished by postpone-
ment to the next session, that the Secretary has thought it
best to present the papers, incomplete as they are, as the
basis of such a letter as the President may think proper to
direct to Mrs. Madison.
JOHN FORSYTH,
Secretary of State.

WASHINGTON, July 9, 1836.

MADAM: It appearing to have been the intention of Congress to make me the organ of assuring you of the profound respect entertained by both its branches for your person and character, and of their sincere condolence in the late afflicting dispensation of Providence, which has at once deprived you of a beloved companion, and your country of one of its most valued citizens, I perform that duty by transmitting the documents herewith enclosed.

No expression of my own sensibility at the loss sustained by yourself and the nation could add to the consolation to be derived from these high evidences of the public sympathy. Be assured, madam, that there is not one of your countrymen who feels more poignantly the stroke which has fallen upon you, or who will cherish with a more endearing constancy the memory of the virtues, the services, and the purity, of the illustrious man whose glorious and patriotic life has been just terminated by a tranquil death. I have the honor to be, madam, your most obedient servant, ANDREW JACKSON.

Mrs. DOLLY F. MADISON,

Montpelier, Virginia.

MONTPELIER, August 20, 1836.

I received, sir, in due time, your letter conveying to me the resolutions Congress were pleased to adopt on the occasion of the death of my beloved husband-a communication made the more grateful by the kind expression of your sympathy which it contained.

cy, symmetry, and beauty of character, in all its parts, which secured to him the love and admiration of his country, and which must ever be the subject of peculiar and tender reverence to one whose happiness was derived from their daily and constant exercise.

The high and just estimation of my husband by my Congress has already, at considerable expense, published, countrymen and friends, and their generous participation in a variety of forms, the naked journals of the Revo- in the sorrow occasioned by our irretrievable loss, (expresslutionary Congress, and of the Convention that formed the ed through their supreme authorities and otherwise,) are constitution of the United States. I am persuaded that the only solace of which my heart is susceptible on the dethe work of Mr. Madison, considering the author, the sub-parture of him who had never lost sight of that consistenject-matter of it, and the circumstances under which it was prepared, long withheld from the public as it has been by those motives of personal kindness and delicacy that gave tone to his intercourse with his fellow-men, until he and all who had been participators with him in the scenes he describes have passed away, well deserves to become the property of the nation, and cannot fail, if published and disseminated at the public charge, to confer the most important of all benefits on the present and every succeeding generation-accurate knowledge of the principles of their Government, and the circumstances under which they were recommended, imbodied in the constitution for adoption. ANDREW JACKSON.

DECEMBER 6, 1836.

DEPARTMENT OF STATE, July 9, 1836. The Secretary of State has the honor to report to the President that there is no resolution of Congress on the VOL. XIII.-N

The best return I can make for the sympathy of my country is to fulfil the sacred trust his confidence reposed in me-that of placing before it and the world what his pen prepared for their use-a legacy the importance of which is deeply impressed on my mind.

With great respect,

D. P. MADISON. To the PRESIDENT OF THE UNITED STATES.

MONTPELIER, November 15, 1836. SIR: The will of my late husband, James Madison, contains the following provision:

"Considering the peculiarity and magnitude of the oc

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casion which produced the convention at Philadelphia, in 1787, the characters who composed it, the constitution which resulted from their deliberations, its effects during a trial of so many years on the prosperity of the people living under it, and the interest it has inspired among the friends of free government, it is not an unreasonable inference that a careful and extended report of the proceedings and discussions of that body, which were with closed doors, by a member who was constant in his attendance, will be particularly gratifying to the people of the United States, and to all who take an interest in the progress of political science and the cause of true liberty."

This provision bears evidence of the value he set on his report of the debates in the convention; and he has charged legacies on them alone, to the amount of $12,000, for the benefit of literary institutions and for benevolent purposes, leaving the residuary nett proceeds for the use of

his widow.

In a paper written by him, and which it is proposed to annex as a preface to the debates, he traces the formation of confederacies and of the articles of confederation, its defects which caused and the steps which led to the convention, his reasons for taking the debates, and the manner in which he executed the task, and his opinion of the framers of the constitution. From this I extract his description of the manner in which they were taken, as it guaranties their fulness and accuracy:

"In pursuance of the task I had assumed, I chose a seat in front of the presiding member, with the other members on my right and left hands. In this favorable position for hearing all that passed, I noted down in terms legible, and in abbreviations and marks intelligible to myself, what was read from the chair or spoken by the members; and, losing not a moment unnecessarily between the adjournment and reassembling of the convention, I was enabled to write out my daily notes during the session, or within a few finishing days after its close, in the extent and form preserved in my own hand, on my files.

"In the labor and correctness of this I was not a little aided by practice, and by familiarity with the style and the train of observation and reasoning which characterized the principal speakers. It happened, also, that I was not absent a single day, nor more than the casual fraction of an hour in any day, so that I could not have lost a single speech, unless a very short one."

However prevailing the restraint which veiled, during the life of Mr. Madison, this record of the creation of our constitution, the grave, which has closed over all those who participated in its formation, has separated their acts from all that is personal to him or to them. His anxiety for their early publicity, after this was removed, may be inferred from his having them transcribed and revised by himself; and, it may be added, the known wishes of his illustrious friend, Thomas Jefferson, and other distinguished patriots, the important light they would shed for present as well as future usefulness, besides my desire to fulfil the pecuniary obligations imposed by his will, urged their appearance, without awaiting the preparation of his other works; and early measures were accordingly adopted by me to ascertain from publishers in various parts of the Union the terms on which their publication could be effected.

It was also intended to publish with these debates those taken by him in the Congress of the confederation in 1782-'8-'7, of which he was then a member, and selections made by himself, and prepared under his eye, from his letters narrating the proceedings of that body during the periods of his service in it, prefixing the debates in 1776 on the declaration of independence, by Thomas Jefferson, so as to imbody all the memorials in that shape known to exist. This exposé of the situation of the counry under the confederation, and the defects of the old

system of government, evinced in the proceedings under it, seem to convey such preceding information as should accompany the debates on the formation of the constitution by which it was superseded.

The proposals which have been received, so far from corresponding with the expectations of Mr. Madison when he charged the first of these works with those legacies, have evidenced that their publication could not be engaged in by me without advances of funds and involving of risks which I am not in a situation to make or incur.

Under these circumstances, I have been induced to submit for your consideration whether the publication of these debates be a matter of sufficient interest to the people of the United States to deserve to be brought to the notice of Congress. And should such be the estimation of the utility of these works by the representatives of the nation, as to induce them to relieve me individually from the obstacles which impede it, their general circulation will be insured, and the people be remunerated by its more economical distribution among them.

With high respect and consideration,

D. P. MADISON. To the PRESIDENT OF THE UNITED STATES.

TRANSFERS OF PUBLIC MONEYS.

Report from the Secretary of the Treasury, transmitting statements of Transfers of Public Moneys, in obedience to a resolution of the Senate of the 20th instant. TREASURY DEPARTMENT,

December 26, 1836.

SIR: I have the honor to submit the following report, in further compliance with a resolution of the Senate, passed the 20th instant, directing "that the Secretary of the Treasury communicate to the Senate a detailed statement of all transfers of public moneys ordered since the 23d of June last, for the purpose of executing the act of that date for regulating the deposites of the public money; showing the dates and amounts of such transfers; from what place to what place; from what bank to what bank; and the times allowed for such transfers, respectively; also, a similar statement of all transfers other than such as were made in execution of the aforesaid act."

From the manner of making transfers which has long prevailed in this Department, the cause for making them does not appear on the face of the transfer draft, nor, in general, on any record.

The cause of any particular transfer is, therefore, usually known to no person except the Secretary who orders it; and hence, such transfers as have been issued "since the 23d of June last, for the purpose of executing the act of that date for regulating the deposites of the public money," and which are called for in the first part of the resolution, cannot be discriminated from any others called for in the last part of the resolution, and which may not have been made in execution of the aforesaid act, unless the Secretary is able to do it, and from memory rather than the records.

In order, therefore, to avoid any mistakes as to the whole amount of transfers directed, from all causes whatever, within the period mentioned, the Treasurer was, on the day the resolution reached me, required to prepare an exhibit of the whole since the 23d of June last, and to accompany it by the details desired in the resolution, as to the times of payment and the names of the banks to and from which they have been respectively ordered.

The whole amount of these transfers which have taken effect, or been paid, appears to be $25,129,385.

Those which have not taken effect, and are not payable, many of them till January, February, March, and April, of

Transfers of Public Moneys.

next year, equal $12,910,000, making the whole amount ordered $38,039,385.

[24th CoNG. 2d SESS.

In several cases, therefore, both objects or purposes, when convenient, were seasonably united, and with a mitTo be able to decide, nearly as practicable, what portion igated and more beneficial effect, it is believed, on the of those have been directed "for the purpose of executing whole administration of the law, and the condition of the the deposite act," and what portion, if any, for other ob- money market generally, than if all the transfers to all jects, it will be necessary to advert to the following facts the different States had been delayed till next year, and and explanations. The Department supposes that they at that time have been ordered in much larger sums. may all be construed by some as having been erdered for But, as the payments were not required to be made into that purpose, because they were all issued under the author- the State treasuries till the 1st of January next, and quarity of that act, and the supplement to it, passed July 4, terly thereafter during the year, it will be seen by the ex1836. But a portion of them having been issued with a hibit that few or no separate transfers have yet been orderview to facilitate disbursements and make payments, at ed for equalisation among the States, disunited with the convenient points, of the appropriations by Congress, may other purpose of equalisation among the banks, except such not, in strictness, perhaps, be considered by others as or- as were to take effect the next year, near the dates when dered for the purpose of executing the act, and hence will, the several payments are due to the States themselves, and as far as practicable, be estimated by themselves. The none whatever have been ordered to remain permanently, amount of them, though not attainable with exactness, can, except in cases where great excesses existed in some States, by a few considerations, probably be separated and com- to be reduced, and deficiencies in others to be supplied, and puted distinctly from the rest, with sufficient certainty for where, if desired on account of greater convenience, merely any general object contemplated by the resolution. in point of time, they have not been postponed to 1837. The distinction between permanent and temporary transfers is adverted to in the above remarks because, though that distinction does not; any more than the cause of the transfer, appear on its face, yet it often happens that transfers are made from one place to another on account of its being more easy in the course of trade and exchange to have the money go to that other place, in the first instance, temporarily, and afterwards be forwarded further by new transfers, and with greater public convenience, to the place where it is permanently to remain till expended.

Thus, the sum in the Treasury subject to draft on the 23d of June, 1836, was about $34,000,000. Of this amount, about $6,200,000 were then under transfer to different places, and to take effect at future periods, for purposes of safety, and affording facility to future disburse

ments.

On the passage of the deposite law, however, and in execution of the first section of it, prohibiting any amount over three fourths of the capital of any bank to be left in it longer than was necessary to select new banks, and to complete the transfers proper for removing the excess, it became indispensable to transfer, for that purpose alone, about $18,300,000. New transfers for this whole amount became necessary, except in a few cases where the transfers outstanding tended to accomplish that object, though in other cases they quite as much retarded it. The Department, therefore, took immediate steps, even before the adjournment of Congress, to comply with this direction of the law. But it was at once perceived that, by the peculiar phraseology adopted in the deposite act, it was very doubtful whether any of these new transfers could be made to banks in other States than those where the money then was, unless done to facilitate the public disbursements, or unless suitable and sufficient banks to hold the excess could not be obtained in the latter States; and, hence, that the transfers of any of it, for the purpose of beginning the equalisation of the surplus among the different States, could not probably, in any case, however convenient, be carried on at the same time, or be commenced before the 1st of January next. These impressions were communicated by me in reply to several members of Congress who inquired at the Department on the subject, and wished new banks selected, and transfers made under the new act, immediately from States where the public money had greatly accumulated beyond their proportion, to other States where large deficiencies existed.

If this be done sometimes, in the first step of its progress, without a rigid regard to deficiencies or excesses in the bank or State receiving the money, yet, in the next and final step of transferring it to its ultimate destination, those are always strictly adhered to.

In several cases, also, where the transfers are at first, for the convenience of commerce, or other proper cause, ordered to banks in an amount beyond three fourths of their capital, it will be seen that, before all the transfers take effect or become paid, other transfers are ordered from the receiving banks, so as to prevent them from holding permanently more than the amount prescribed in the law. But, besides the transfers of the $18,300,000, rendered imperative to equalise the money among the banks, there has been an accruing revenue since the deposite act passed, amounting to nearly $22,500,000, and most of which, being at first paid into the banks where an excess already existed, and hence not by law retainable there, has also been, necessarily, placed under transfer to some other banks, in compliance with the first section of the act of Congress, except so far as while accumulating; the revenue, whether new or old, has in part been used to meet current expenditures at the places where collected.

annual report, have, under the direction of the President and advice of the director, been made to promote the execution of that desirable object.

In addition to all these removals of money, rendered indispensable under the 12th section of the act, amounting in all to over forty millions of dollars, except the deduction of Accordingly, the form of a bill was, at their request, pre- the current expenditures at those points, equalling perhaps pared, which might, if Congress deemed it proper to legis- one third of the whole $17,500,000 which have been paid late further on the subject, remove the supposed difficulty, out on appropriations since last June, other transfers, to and which, with some modifications, afterwards passed in- the amount of $700,000, authorized for the purpose of supto a supplemental law, on the 4th of July last. Conse-plying the mint with metal for coining, as explained in my quently, in any subsequent proceedings to accomplish those first transfers of about $18,300,000, with a view to equalise the amount among different banks, in conformity to the first section of the deposite act, it was considered that Congress, by the supplemental act, expressly intended to remove the doubts and objections before entertained to the course previously proposed, of combining with the division of the excesses among new banks the commencement of the apportionment of the deposites among the different deficient States, preparatory to a gradual and easy payment to the States themselves the ensuing year.

The result of the whole is, that the amount of transfers ordered to execute only these purposes would be about $30,666,666, or but seven to eight millions less than all the transfers ordered since the deposite act passed.

This residue is near the whole amount which has probably been required to be transferred for facilitating the public disbursements at other points, amounting, since June last, at those other points, it is presumed, to about twelve

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