rations. This power can only be limited by their con

sent.

With the adoption of a financial agency of a satisfactory character, the hope may be indulged that the country will 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 burthens 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 of their finances now subjects them.

And, while I must repudiate as a measure founded in eiror, and wanting 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 which this is to be effected addresses itself to the discretion of Congress, as the trustee for the States; and its exercise, after the most beneficial manner, is restrained by nothing in the grants or in the Constitution, so long as Congress shall consult that equality in the distribution which the compacts require.

In the present condition of some of the States, the question of distribution may be regarded as substantially a question between direct and indirect taxation. If the distribution be not made in some form or other, the necessity will daily become more urgent with the debtor States for a resort to an oppressive system of direct taxation, or their credit, and necessarily their power and influence, will be greatly diminished. The payment of taxes, after

the most inconvenient and oppressive mode, will be exacted in place of contributions for the most part voluntarily made, and therefore comparatively uuoppressive The States are emphatically the constituents of this Go vernment; 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 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 revenue 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 these 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 public 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 arrangement as to the price of the public lands which might in future be esteemed desirable.

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 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 pro mises to develope gross enormities in connection with Indran treaties which have been negotiated, as well as 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.

In reflecting on the proper means of defending the coun try, 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 maritime States. We cannot yet see the extent to which this pow er may be applied in belligerent operations, connecting it self as it does with recent improvements in the science of gunnery and projectiles; but we need have no fear of being left, in regard to these things, behind the most active and skilful of other nations, if the genius and enterprise. of our fellow-citizens receive proper encouragement and direction from Government.

True wisdom would, nevertheless, seem to dictate the necessity of placing in perfect condition those fortifications which are designed for the protection of our principal cities and railroads. For the defence of our extended maritime coast, our chief reliance should be placed on our Navy, aided by those inventions which are destined to recommend themselves to public adoption. But no time should be lost in placing our principal cities on the seaboard and the lakes in a state of entire security from foreign assault. Separated as we are from the countries of the old world, and in much unaffected by their policy, we are happily relieved from the necessity of maintaining large standing armies in times of peace. The policy which was adopted by Mr. Monroe, shortly after the conclusion of the late war with Great Britain, of preserving a regular organized staff sufficient for the command of a large military force, should a necessity 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 sys. tem of discipline both promptly and efficiently. All that is required in time of peace is to maintain a sufficient num ber of men to guard our fortifications, to meet any sudden contingency, and to encounter the first shock of war. Our chief reliance must be placed on the militia. They con stitute 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 com plete organization and discipline.

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, $84,006 063, and on the first of January, 1842, the sum of $60,000. In addition to these sums, about $6,000 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, $150,006 063. To meet these payments there is within the control of the department the sum of $28,040, leaving a deficit of $121,966 063. The public faith requires that immediate provision should be made for the payment of these sums.

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.

Athough the laws regulating the Post-Office department only require from the officer charged wth its direction

to report at the usual annual session of Congress, the Post Master 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 accompanying report of that officer, it appears that the existing liabilities of that Department beyond the means of payment at its command cannot be less than five hundred thousand dollars. As the laws organizing that branch of the public service confine the expenditure to its own revenues, deficiencies therein cannot be presented under the usual estimates for the expenses of Government. It must therefore be left to Congress to determine whether the moneys now due to contractors shall be paid from the public Treasury, or whether that Department shall continue under its present embarrassments. It will be seen by the report of the Post Master General, that the recent lettings of contracts in several of the States, have been made at such reduced rates of compensation as to encourage the belief that, if the department was relieved from existing difficulties its future operations might be conducted without any further call upon the general Treasury.

The power of appointing to office is one of a character the most delicate and responsible. The appointing power is evermore exposed to be led into error. With anx

ious solicitude to select the most trustworthy for official stations, I cannot be supposed to possess a personal knowledge of the qualifications of every applicant. I deem it therefore proper, in this most public manner, to invite, on the part of the Senate, a just scrutiny into the character and pretensions of every person whom I may bring to their notice in the regular form of a nomination for office. Unless persons every way trustworthy are employed in the public service, corruption and irregularity will inevitably follow. I shall with the greatest cheerfulness, acquiesce in the decision of that body, and, it is wisely constituted to the Executive department in the performance of this delicate duty, I shall look to its consent and advice,' as given only in furtherance of the best interests of the country.