nection with banks, acting under the shield of corporate immunities, and conducted by persons irresponsible to the Government and the people? It is believed that a considerate and candid investigation of these questions will result in the conviction, that the proposed plan is far less liable to objection, on the score of Executive patronage and control, than any bank agency that has been, or can be, devised."

The President next directed the attention of Congress to the character of the funds to be received and disbursed in the transactions of the Government. He stated that there can be no doubt that the intention of the framers of the Constitution, as of the first Congress under it, was that the revenue should be received in nothing but gold and silver. Public exigency alone, at the outset of the Government, continued since during the pressure of war, and afterwards in accordance with previous practice, led to a deviation from this course. On the occurrence of the suspension, the existing laws, prescribing that nothing but specie or its equivalent should be received, had been strictly enforced, as they had been applied to the disbursement of the public moneys to the utmost extent practicable. He presumed that the reception of depreciated paper would not be sanctioned by Congress. Referring to the policy heretofore pursued, of infusing into our circulation a larger proportion of the precious metals, he remarked that under its influence the specie in the country had increased to eighty millions; while the coinage at the mint, between August, 1831, and December, 1836, had amounted to ten millions, exceeding the whole coinage during the thirty-one previous years. This policy would be destroyed by the consent of Congress to receive an irredeemable paper money. Notes actually convertible might be received, provided they be converted into specie, at short and fixed periods, to be kept by the officers of the Treasury. To retain the notes in the Treasury would be to renew, under another form, the loans of public money to the banks, and the evils consequent thereon.

The President considered that ten millions of the precious metals would be abundantly sufficient for the purposes of the public revenue; while a material public advantage would arise from its being enabled to satisfy the public creditors with its drafts or notes, receivable again for public dues. He then showed the fallacy of the opinion that this would introduce an unjust distinction between the currency of the Government and that of the people, to the advantage of the former. He considered that it would be even a real advantage to the banks themselves, by causing them to be conducted with

more caution and on sounder principles; while the use of specie alone for the transactions of the Government would create a demand for it, which would, to a great extent, prevent its exportation, and by keeping it in circulation, maintain a broader and safer basis for the paper currency. There can be no doubt that it was the intention of the framers of the Constitution to guard against a paper currency in any form, but it is not to be expected that the States would now surrender the power of creating banking corporations, it not having being specifically foreseen and guarded against in the Constitution; but a salutary reform will doubtless grow out of the present discussion of the subject by the people.

As one of the remedies against a depreciated paper currency which the Constitution affords, the President suggests the propriety of some uniform bankrupt law. He also suggests the propriety of the extension of a still further indulgence on the bonds due for duties; and called attention to the adoption of proper measures in relation to the settlement of the indebted ness of a portion of the late deposite banks.

The President submitted, that the amount that would be needed for the expenses of the Government beyond the receipts, would be about six millions; and if four millions be reserved in the Treasury for contingencies and the use of the mint, the sum needed would be ten millions. This estimate supposes the further extension of the duty bonds, so as to affect the revenue to the amount of two and a half millions.

The propriety of withholding the fourth instalment ($9,367,214) of the surplus revenue, yet undistributed to the States, is next adverted to; and until the amount can be collected from the deposite banks, for the uses of the Government, it is suggested that Treasury notes may be temporarily issued, to be gradually redeemed as it is received.

The President then proceeded to some general remarks on the powers and duties of the Federal Government in relation to the general business concerns of the country, to the effect that it ought to interfere in them as little as possible; and that its action ought not to be extended, by any temptation of advantage to special interests-whether of agriculture, manufacture, or trade-beyond the restricted limits within which it was designed to act; that being established to give security to us all, under the lasting safeguard of republican institutions, its whole duty is performed, when it enacts and enforces a system of general laws commensurate with, but not exceeding the objects of its establishmentthen leaving every citizen and every interest free to reap, under its general protection, the reward of virtue, industry, and prudence. He therefore felt bound to

abstain from recommending any specific plan for regulating exchanges, relieving mercantile embarrassments, or interfering with the ordinary operations of foreign and domestic commerce. He anticipated an early relief to the distresses of the times, by the natural operation of the productive resources of the country. He did not doubt the ultimate security of the great bulk of those obligations under the pressure of which, at present irredeemable, the country is laboring. He reserved till the usual period of the annual meeting of of Congress that general information of the state of the Union, required of him by the Constitution.

The Report of the Secretary of the Treasury we must, necessarily, greatly condense: The amount reserved in the Treasury on the 1st January, 1807, as increased by the subsequent returns of the banks, was $6,670,137 52; the surplus for distribution, $37,468,859 97; all which has been distributed accordingly, except the fourth instalment, falling due on the 1st October, amounting to $9,367,214 98.

The receipts for the first half of the present year make an aggregate of $13,187,182. If the postponement of duty bonds, hereafter suggested, be adopted by Congress, the receipts for the remaining half will be about $7,000,000; making, with the balance reserved as above stated, an aggregate of $26,857,319.

The total expenditures have been for the first half year $16,733,884 33; for the remaining half they are computed, under the existing appropriations, independently of any further appropriations that Congress may make, to amount to about 16,000,000; making an aggregate for the whole year of $32,733,884; constituting an excess of expenditures of $5,876,565, besides leaving nothing in the Treasury for the use of the mint and contingencies. To meet that excess, and retain one million in the mint and between three and four millions for contingencies, the amount of $10,000,000 must, therefore, be raised, either from the money on deposite with the States, and the instalment due on the 1st October, or from some other source. The balance in the Treasury on the 30th ult. was $14,596,311; the amount of this subject to immediate draft was $8,928,072. In addition, therefore, to the deficiency for the expenditures, there will exist on 1st October next, after defraying the intervening expenses, no sufficient means of any kind to pay the fourth instalment then due to the States, unless the bonds then due, about $4,000,000, and the million and a half then due from the Bank of the United States shall be available, or other provision be made by Congress.

This exhibit does not include the moneys standing to the special credit of the

Post Office Department, and the Patent Office.

At the last annual report the accruing receipts of the year were estimated only at twenty-four millions. The appropriations by Congress exceeded thirty-two millions, a deficiency was therefore inevitable.

After relating the postponements al ready made of the duty bonds, he suggests a further postponement so as to make an extension of six months from the date of maturity of the respective bonds. This would affect the revenue for the present year to the amount of two and a half millions.

An extension of the warehouse system is strongly recommended, as a great improvement in many points of view over the present system of the collection of duties.

The report next considered the obstacles in the way of transferring the last instalment of deposites to the States. In consequence of the troubled condition of the money market, the transfers from the banks of the interior to the seaboard, preparatory to the payment of the fourth instalment had been ordered, for their convenience, to be made during the summer and autumn, but were frustrated by the suspension in May; and thus about twothirds of the money lay in the banks of the west and southwest. If transferred to the States, it must necessarily be in drafts on these banks, now much depreciated in value. All the transfers were not made as ordered, for the July instalment; and though, in making the payments to the States, they were requested to return the orders in which they were made, if not of a satisfactory character to them, for the action of Congress, the amount of $1,165,575 remains unreceipted for, and the orders not returned. Several of these orders have been purchased by the Bank of the United States, presented, and protested; it is for Congress to decide whether payment of them shall be made in any other currency than that in which the rest of the July instalment was paid.

Most of the money will be needed for outstanding appropriations; and, as it is not a debt, but a deposite of a surplus, it is recommended, however the inconvenience to the States is to be regretted, that the fourth instalment be withheld at least till a more convenient season.

But from the deficiency of revenue from bonds postponed and uncollected,the probable postponement of cash duties, to the amount of a million, by the option enjoyed under the existing laws of leaving goods in store,-and from the unavailable character of the money in the Treasury in the hands of banks, it is recommended that some temporary expedient be resorted to, until the latter can become gradually available. One mode would be the issue. of Treasury notes, without interest, re

ceivable for public dues, in moderate amounts, in anticipation of actual accruing revenue, and in low denominations. These would probably be taken at par by most of the public creditors. The President should be empowered to issue them in larger quantities, bearing an interest not to exceed six per cent, if it should unexpectedly be rendered necessary, by the delinquency of the public debtors and the failure of revenue. Provision should be made for their redemption whenever the available moneys in the Treasury and mint exceed four or five millions. For the future custody of the public money, two plans are suggested.

The first is, to assign this additional duty to our existing officers and establishments, viz: the mint and its branches (one to be established in New York), collectors, receivers, and post-masters,-in the large custom-houses the cashiers being made independent of the collectors, with increased salaries and specified duties. With vigilance on the part of the Department and Congress, and careful attention to the bonds required, it is presumed that no serious risk would attend this system. The business would be very slight, and the whole project simple, feasible, and cheap, not exceeding $30,000 in the additional expense.

The other is to establish an organization of some eight or ten receivers-general, at the principal points, a plan in successful practice in some of the most enlightened and opulent governments of Europe, and recommended by this Department as early as 1790. The cost would be about $60,000-the risk not greater than under the former plan, and the efficiency and advantages perhaps greater.

Either of the these methods would effect an important diminution of Executive control and patronage; would promote the efficiency of the Department, and remedy numerous and serious existing evils, arising out of the connection between the Government and the pecuniary interests of individuals, corporate institutions, and classes.

The revenue and expenditures will probably be soon reduced to about $17,000,000. In large sections of the Union, in a healthy state of business, the expenditures correspond conveniently in amount with the receipts in the same sections. The annual transfers to a great distance would not probably exceed two or three millions, and by means of drafts would afford valuable facilities for domestic exchange. By adopting a system of receiving payment in advance, at certain convenient points, of public lands sold, these distant transfers could be reduced to an altogether insignificant amount.

A national bank, as a mode of fiscal management, is presumed to be out of the question.

VOL. I.

The next section was devoted to the. subject of the settlement with the former deposite banks.

The following were the principal facts stated. Between November and May last, though their payments, under the distribution act, exceeded their receipts by about twenty millions, their specie was reduced only from fifteen to thirteen millions, and their circulation, instead of increasing fell from forty-one to thirty-seven millions.

Their specie averaged more than one to three-more than has been customary with the banks of the country; twice as great a proportion as in the banks of England at the same period; and one-fourth greater than that of the Bank of England. Their immediate means and liabilities averaged about one to two and a half.

Since the suspension, their discounts have been reduced about $20,388,776; their circulation $4,991,791; their public deposites $15,607,316, while their specie has diminished less than $3,000,000. Of the 86 employed, ten or eleven have paid all their public balances; in the custody of more than half the others an aggregate of less than $700,000 remains unadjusted. The whole balance in them is $12,418,041.

Suits have been commenced against only nine, because they did not pursue a proper course of reduction, to improve their condition, nor make reasonable efforts to pay the public drafts upon them.

The public creditors have never been required to receive payment of their drafts on the banks in paper, thought they have doubtless in most cases either done so, or have been willing to accept the drafts, which, after presentation and protest, were made receivable by the collectors and receivers.

A large amount of payments have been made in specie, by means of that on hand and since collected.

The Department is of opinion, that an early resumption of specie payments, and the payment of interest on the deposites on hand since the suspension, ought to be made the conditions of whatever indulgence should be extended to them. It has no doubt of the ultimate safety of the deposites.

The banks of the southwest are in the worst condition. Those in the western, and probably in the eastern and middle States have the proportion of specie to circulation of one to two, or one to three.

The specie exported since the suspension, as appearing on the custom-house books, has been $3,708,320; imported within the same period, $3,140,020. Though this does not exhibit the entire quantity exported or imported, the surplus of the former is much less than commonly supposed.

The consideration of the propriety of a bankrupt law was here suggested.

B*

The next section related to the money receivable for public dues. It maintained strongly, that nothing but specie, or its bona fide representative should be permitted. The amount necessary for public payments could not exceed eight or ten millions, even if no kind of paper were receivable. The power of Congress to create a paper currency seems very doubtful. Exchanges can regulate themselves much better than they can be regulated by legislation. If local paper is to be receivable, it should be periodically converted into specie. Treasury certificates issued to the public creditors, drawn on actual specie funds, and made receivable, would unite all the advantages of specie and paper, and could be introduced to great advantage, both for public and private convenience, into the currency.

The Report concluded with a section devoted to "Some general causes and remedies of the present embarrassments." Within the last three years the cotton crop, though before very great, had been increased probably more than one hundred millions of pounds, so as to exceed in a single year the enormous quantity of 540 millions of pounds. The fall of price made a loss of $40,000,000. The fall was chiefly consequent on the overproduction, and the sudden withdrawal of foreign credit The overproduction operated from the inordinate extent of credits and bank issues, and the low rate of public lands, the sales of which had increased to over 20,000,000 acres yearly, when not more than three or four millions were probably naturally required.

The importations of foreign goods amounted to nearly $200,000,000, being a surplus over the exports of $60,000,000; which, after the proper deductions, left a clear balance of commercial debt of $30,000,000.

This was a direct consequence of the expanded credit system. The latter was much stimulated by the large public surplus or deposite. The operation of the deposite act has been very disturbing and injurious, requiring first the collection of from ten to fifteen millions for subdivision among more numerous banks, and then within nine months a collection and transfer of near forty millions more.

The injudicious increase of bank capital, discounts, and issues-making an increase of circulation of near forty millions within three years-has been a very powerful cause. The only effectual remedies lie in a return to sound principles of credit and business. The incidental influence which the General Government can legitimately exercise is comparatively slight. The regulation and reform of the banking system belong to the States.

The Report of the Post-Master General

was very brief and pointed. It stated that immediately after the suspension of specie payments by the banks in New York, circulars were sent out, requiring all postmasters to adhere strictly to the provisions of the laws which permitted the reception of specie alone, or its equivalent; and to those who had been in the habit of making deposites in banks, to retain them in specie, subject to meet the drafts of the Department. No inconvenience arises from the working of this system. The number of offices is very small, in which there could be ever any convenience in the use of banks as depositories, being those whose receipts are large, and not likely to be absorbed, from quarter to quarter, by the collections made by the contractors on their respective routes (in payment of themselves, under the system of collection now generally in operation) and by the drafts of the Department. In these cases, the balance is kept in iron chests or safes, subject to draft, and by vigilant supervision, and careful attention to their bonds, there is little danger of defalcation. For the transfers of moneys required by the Department, being mostly from the large cities on the sea-board to the interior, the drafts on these balances afford a medium even preferable to the specie itself, being available for mercantile remittances. Urgent attempts were made in several quarters to compel the Department to receive depreciated paper, but without success, and they were soon abandoned. No difficulty has been experienced in conducting its affairs, and in performing its engagements; nor is any anticipated, if it is still allowed to collect its revenue in the constitutional currency. And on the whole no further legislation is required to eneble the Department to manage its fiscal concerns, the existing laws being deemed ample for those purposes. 肇

ELECTION OF PRINTER TO THE HOUSE OF

REPRESENTATIVES.*

tion to the late and present administrations, (nominated by Mr. Williams, of N. C.) and the Madisonian, a paper recently established at the seat of Government, under the auspices of the Conservative party, in the hope of counteracting the tendency exhibited by the Administration, and the Democratic party at large, to a strong course of financial reform, which was supposed to threaten danger to the "credit system," as existing in the country, and to the vast interests involved in it. The editor of the Madisonian was put in nomination by Mr. Clarke, of N. Y.

After the reading of the Message, five ineffectual attempts were made to elect a printer. The highest votes for the three respective candidates were, for the editors of the Globe, 104; of the National Intelligencer, 103; of the Madisonian 23, and none of the votes differed more than one or two from these numbers.

The ballotting continued during the two succeeding days, mixed up with a great deal of animated debate; and various attempts were made to substitute other modes of proceeding. Various propositions were offered, but were either withdrawn or laid upon the table. Mr. Pickens was in favor of having the printing executed by contract by the lowest bidder. Several members were strongly desirous to have the printing divorced' from its connection, as it has heretofore existed, with the newspaper press; it was also proposed to divide it among the four principal offices of the city. Mr. Bronson, of N. Y., proposed that the ballotting be suspended till the third Monday of September, and that in the mean time the Clerk be authorized to employ somebody for the purpose, on the same terms as at the last session. This was laid on the table by yeas and nays, 114 to 109. (See Table of Yeas and Nays No. 1.) Three ballottings were held on the second day (Wednesday), by which it appeared that the members of the Opposition were gradually ranging themselves on the side of the Conservative candidate, as the successive votes for Thomas Allen were 27, 42, and 53, those for Gales and Seaton decreasing in a corresponding ratio; and the vote for Blair and Rives remaining firm, as it did, in fact, to the end. A motion was made by Mr. Boon, that the election be held viva voce, instead of by ballot. It was amended by Mr. Patton, so as to extend the principle to all elections of officers by the House. An attempt to lay this on the table was defeated, by yeas 88, nays 132. (See Table, No. 2.) It gave rise to a warm discussion, which extended over to the next day; when it was finally, with the amendments offered, laid on the table without a division, and the House proceeded with the ballotting; and at length, on the

fourth attempt (being the twelfth ballotting) Thomas Allen, the editor of the Madisonian, received the requisite majority of the whole, (113) and was declared duly elected."

Little surprise was excited by the announcement in the National Intelligencer of the following day, that the work would be, in fact, by private contract with the Printer elect, executed in that office. THE SENATE.

THE Senate proceeded without delay to the business of the session. It early evinced a determination not to take up any of the miscellaneous subjects of business which were brought before it by memorials or otherwise; but to confine itself to the financial legislation required by the emergency which had caused the extra session to be convened. The regular standing committees were, however, appointed, as usual. The only two committees of which it is necessary to enumerate the members-none of the others having had occasion to act-are the Committee on Finance, which was composed of Mr. Wright, Chairman, and Messrs. Webster, Nicholas, Benton and Hubbard; and that on the Judiciary, which was composed of Mr. Grundy, Chairman, and Messrs. Morris, King, of Ga., Wall, and Clayton.

The Committee on Finance lost no time in laying before the Senate the entire system of measures which it proposed for the legislation of Congress. On Monday, September 11th, Mr. Wright reported a bill to postpone the payment of the first instalment of the deposites with the States, till further provision of law. On Wednesday he reported three more:

A bill to authorise the issuing of Treasury notes.

Á bill to authorize a further postponement of payment upon duty bonds.

And a bill for adjusting the remaining claims upon the deposite banks.

And finally, on Thursday, three more bills:

A bill to authorize merchandize to be deposited in the public stores, and for other purposes.

A bill imposing additional duties as depositories, in certain cases, on certain officers.

And a bill to revoke the charters of such banks in the District of Columbia as shall not resume specie payments in a limited time, and to prohibit the issuing of small notes therefrom.

We shall best accomplish our objectthat of presenting a distinct view, within as brief limits as possible, of the history of the session-by tracing out the course of proceeding and debate on each bill separately, classifying our arrangement with reference to the continuous succes