by our citizens; the business of exchange, both foreign and domestic, has been conducted with convenience; and the circulating medium has been greally improved. By the use of the Slale Banks, which do not derive their charters from the General Government, and are not controlled by its authority, it is ascertained that the moneys of the United States cau be collected and disbursed without loss or inconvenience, and that all the wants of the community, in relation to exchange and currency, are supplied as well as they have ever been before. Il, under circumstances the most unfavorable to the steadiness of the money market, it has been found that the considerations on which the Bank of the United States rested its claims to the public favor, were imaginary and groundless, it cannot be doubted that the experience of the future will be more deci. sive against them.

It has been seen, that, without the agency of a great moneyed monopoly, the revenue can be collected, and conveniently and safely applied to all the purposes of the public expenditure. It is also ascertained, that, instead of being necessarily made to promote the evils of an unchecked paper system, the management of the revenue can be made auxiliary to the reform which the Legislatures of several of the States have already cornmenced in regard to the suppression of small bills ; and which has only to be fostered by proper regulations on the part of Congress, 10 secure a practical return, to the extent required for the security of the currency, to the constituiional medium. Severeit from the Government as political engines, and not susceptible of dangerous extension and combination, the State Banks will not be tempted, nor will they have the power which we have seen exercised, to divert the public funds from the legitimate purposes of the Government. The collection and custody of the revenue being, on the contrary, a source of credit to thein, will increase the security which the States provide for a faithful Jexecution of their trusts, by multiplying the scrutinies to which their operations and accounts will be subjected. Thus disposed, as well from interest as the obligations of their charters, it cannot be doubled that such conditions as Congress may see fit to adopt respecting the deposites

in these institutions, with a view to the gradual disuse of the small bills, will be cheerfully complied with ; and that we shall soon gain, in place of the Bank of ibe United States, a practical reform in the whole paper system of the country. If, by this policy, we can ultimately witness the

suppression of all bank bills below twenty dollars, it is apparent that gold and silver will take their place, and become the principal circulating medium in the coinmon business of the farmers and mechanics of the country. The attainment of such a result will form an era in the history of our country which will be dwelt upon with delight by every true friend of its liberty and independence. It will lighten the great tax which our paper system has so long collected from the earnings of labor, and do more to revive and perpetuate those habits of economy and siinplicity which are so congenial to the character of republicans, than all the legislation which has yet been attempted.

To this subject I feel that I cannot too earnestly invite the especial attention of Congress, without the exercise of whose authority, the opportunity to accomplish so much public good must pass unimproved. Deeply impressed with its vital importance, the Executive has taken all the steps within his constitutional power, to guard the public revenue, and defeat the expectation which the Bank of the United States indulged, of renewing and perpetuating its monopoly, on the ground of its necessity as a fiscal agent, and as affording a sounder currency than could be obtained without such an institution. In the performance of this duty much responsibility was incurred which would have been gladly avoided, if the stake which the public had in the question could have been otherwise preserved. Although clothed with the legal authority, and supported by precedent, I was aware that there was, in the act of the removal of the deposites, a liability to excite that sensitiveness to Executive power which it is the characteristic and the duty of freemen to indulge: but I relied on this feeling, also, directed by patriotism and intelligence, to vindicate the conduct which, in the end, would appear to have been called for by the best interests of my country. The apprehensions natural to tàis feeling, that there may have been a desire, through the instrumentality of that measure, lo extend the Exec

utive influence, or that it may have been proinpted by molives not sufficiently free from ambition), were not overlooked. Under the opera• tion of our institutions, the public servant who is called on to take a step of high responsibility, should feel in the freedoin which gives rise to such apprehensions, bis highest security. When unfounded, the attention which they arouse, and the discussious they excite, deprive those who indulge them, of the power 10 do barm ; when just, they but hasten the certainty with which the great boily of our citizens never fail to repel an attempt to procure their sanction to any exercise of power inconsistent with the jealous maintenance of their rights. Under such convictions, and entertaining no doubt that my constitutional obligations demanded the steps which were taken in reference to the removal of the deposites, it was impossible for me to be deterred from the path of duty

by a fear that my motives could be misjudged, or that political prejudices could def-at the just consideration of the merits of my conduct. The result has shown how safe is this reliance upon the patriotic teinper and enlightened discernment of the People. That measure has now been before theni, a'ud has stood the test of all the severe analysis which its general importance, the interests it affected, and the apprehensions it excited, were calculated to produce; and it now remains for Congress to consider what legislation has become necessary in consequence,

I need only add to what I have ou fornier occasions said on this subject generally, that in the regulations which Congress may prescribe respecting the custody of the Public Moneys, it is desirable that as little discretion as may be deenied consistent with their safe keeping, should be given to the Executive agents. No one can be more deeply impressed thau I am with the soundness of the doctrine which restrains and limits, by specific provisions, Executive discretion, as far as it can be done consistently with the preservation of its constitutional character. In respect to the control over the public niones, this doctrine is peculiarly applicable, and is in harmony with the great principle which I felt I was sustaining in the coutroversy with the Bank of the United States; which has resulted in severing, to some extent, a dangerous connexion between a moneyed and political power. The duty of the Legislature to define, by clear and positive enactments, the nature and extent of the action which it belongs to the Executive to superintend, springs out of a policy analagous to that with enjoins upon all the branches of the Federal Government an-abstinence from the exercise of powers not clearly granted. In such a government, possessing only limited and specific powers, the spirit of its general administration cannot be wise or just, when it opposes the reference of all doubtful points to the great source of authority, the States and the People ; whose number and diversified relations, securing them against the influences and exciteinents which may mislead their agents, make them the safest depository of power. In its application to the Executive, with reference to the Legislative branch of the Goverument, the same rule of action should make the President ever anxious 10 avoid the exercise of any discretionary authority, which can be regulated by Congress. The biases which may operate upon him will not be so likely to extend to the Representatives of the People in that body.

In my former messages to Congress, I have repeatedly urged the propriety of lessening the discretionary authority lodged in the various deparinients, but it has produced no effect, as yet, except the discontinuauce of extra allowances in the Army and Nary, and the substitution of fixed salaries in the latter. It is believed that the same principles could be advantageously applied, in all cases, and would promote the efficiency and economy of the public service, at the same time that greater satisfaction and more equal justice would be secured to the public officers generally.

The accompanying report of the SECRETARY OF WAR will put you in possession of the operations of the department confided to his care, in all its diversified relations, during the past year.

I am gratified in being able to inform you that no occurrence has required any movement of the inilitary force, except such as is common to a state of peace. The services of the Army have been limited to their usual duties at the various garrisons upon the Atlantic and inland frontier, with the exceptions stated by the Secretary of War. Our small military establishment appears to be adequate to the purposes for which it is maintained, and it forms a nucleus around which any additional force may be collected, should the public exigencies unfortunately require any increase of our military means.

The various acts of Congress which have been recently passed in relation to the army, have improved its condition and have rendered its

organization inore useful and efficient. It is at all times in a state for prompt and vigorous action, and it contains within itself the power of extension to any useful limit; while, at the same tine, it preserves that knowledge, both theoretical and practical, which education and ex

perience alone can give ; and which, if not acquired and preserved in time of peace, must be sought under great disadvantages in time of war.

'The duties of the Engineer Corps press heavily upon that branch of the service; and the public interest requires an addition to its strength. The nature of the works in which the officers are engaged render necessary professional knowlerige and experience, and there is no economy in committing to them more duties than they can perform, or in assigning these to other persons temporarily employed, and too often, of necessity, without all the qualifications which such service denands. I recommend this subject to your attention, and also the proposition submitted at the last session of Congress, and now renewed, for a re-organization of the Topographical Corps. This re-organisation can be effected without any addition to the present expenditure, and with mueh advantage to the public service. The branch of duties which devolves upon these officers is at all times interesting to the community, and the information furnished by them is useful in peace and war.

Much logs and inconvenience have been experienced in consequence of the failure of the bill containing the ordinary appropriations for fortifications, which passed one branch of the National Legislature at the last session, but was lost in the other. This failure was the more regretted, not only because it necessarily interrupted and delayed the progress of a system of national defence, projected immediately after the last war, and siuce steadily pursued, but also because it contained a contingent appropriation, inserted in accordance with the views of the Executive, in aid of this important object, and other branches of the national defence, some portions of which might have been most usefully applied during the past season. I invite your early attention to that part of the report of The Secretary of War which relates to this subject, and recommend an appropriation sufficiently liberal to accelerate the armament of the fortifcations, agreeably to the proposition submitted by him, and to place our whole Atlantic seaboard in a complete state of defence. A just regard to the permanent interests of the country evidently requires this measure, but there are also other reasons, which at the present juncture, give it peculiar force, and make it my duty to call to the subject your special consideration.

The present system of Military Education has been in operation foufficiently long to test its usefulness, and it has given to the army a valuable body of officers. It is not alone in the improvement, discipline, and operation of the troops, that these officers are employed. They are also extensively engaged in the administrative and fiscal concerns of the various matters confided to the War Department; in the execution of the staff duties, usually appertaining to military organization ; in the removal of the Indians, and in the disbursement of the various expenditures growing out of our Indian relations ; in the formation or roads, and in the improvement of harbors and rivers ; in the construction of fortifications ; in the fabrication of much of the materiel required for the public defence ; and in the preservation, distribution, and accountability of the whole; and in other miscellaneous duties, not admitting of classification.

These diversified functions embrace very heavy expenditures of public money, a nd require fidelity, science, and business habiis in their execution; and a system which shall secure' these qualifications is demanded by the public interest.

That this object has been, in a great measure, obtained by the Mililary Academy, is shown by the state of the service, and by the prompt accountability which has generally followed the necessary

advances. Like all other politieal systems, the prosent mode of military education, no doubt, has its imper sections, both of principle and practice; but I trust these can be improved by rigid inspections, and by legislative scrutiny, without destroying the institution itself.

Occurrences, to which we as well as all other nations are liable, both

in our internal and external relations, point to the necessity of an officient organization of the Mililia. I am again induced, by the importance of the subject, to bring it to your attention. To suppress domestic violence, and to repel foreign invasion, should these calamities overtake us, we must rely, in the first instance, upon the great body of the community, whose will has instituted, and whose power must support, the Government. A large standing military force is not consonant to the spirit of our institutions, nor to the feelings of our countrymen; and the lessons of former days, and those also of our own times, show the danger, as well as the enormous expense, of these permanent and extensive military organizations. That just medium which avoids an inadequate preparation on one hand, and the danger and expense of a large force on the other, is what our constituents have a right to except from their Government. This object can be attained only by the maintenance of a small military force, and by such an organization of the physical strength of the country as may bring this power into operation, whenever its services are required. A classification of the population offers the inost obvious means of effecting this organization. Such a division may be made as will be just to all, by transferring each at a proper period of life, from one class to another, and by calling first for the services of that class, whether for instruction or action, which, from age, is qualified for the duty, and may be called to perform it with least injury to themselves, or to the public. Should the danger ever become so imminent as to require additional force, the other classes in succession would be ready for the call. And if, in addition to this organization, voluntary associations were encouraged, and inducements held out for their formation, our militia would be in a state of efficient service. Now, when we are at peace, is the proper time to digest and establish a practicable systein The object is certainly worth the experiment, and worth the expense. No one appreciating the blessings of a republican government, can object to his share of the burden which such a plan may impose. Indeed,

moderate portion of the national funds could scarcely be beller applied than in carying into effect and continuing such an arangement, and in giving the necessary elementary instruction. We are happily at peace with all the world. A sincere desire to continue so, and a fixed deterniination to give no just cause of offence to other nations, furnish, uvfortunately, no certain grounds of expectation that this relation will be uninterrupted.

With this determination to give no offence is associated a resolution, equally decided, lamely to submit to none. The armor and the attitude of defence afford the best security against those collisions which the

ambition, or interest, or some other passion of nations, not inore justifiable, is liable to produce. In many countries, it is considered unsa se to put arms into the hands of the People, and to instruct them in the elements of military knowledge. That fear can have no place here, when it is recollected that the People are the sovereign power. Our Government was instituted, and is supported, by the ballot-box, not by the musket.

Whatever changes a wait it still greater changes must be made in our social institutions, before cur political system can yield to physical force. Tu every aspect, therefore, in which I can view the subject, I am impressed with the importance of a prompi and efficient organization of the militia.