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cnied condennalOn, yet no other scheme of finance seemed to have been concurred in. To you, then, who have come directly from the bod, of our common constituents, l submit the entire question, as best qualified 10 give full exposition of their wishes and opinions. shall he ready to concur with you in the adoption of such system you may pro- pose, reservng myself the ultimate power o reject ing any measure which may, m my 'Iew ol II, con hct with the Constitution, or otherwise JeopardIAe the power ot the country-a power which could not pat with even if would, but which wllnol believe any act of yours will call into requsition.

 l beg leave particularly to call your attention to the accompanying report from the Secretary of War. Besides the present state of the war winch has SD long afflicted the Territory of Florida, and the va rous other matters of interest therein referred to, you will leam from it that the secretary has nstitu- ted an enquiry into abuses, which promises to deve

 lop gross enclnties in connection with Indian rea- tics which have been negotiated well as in the ex penditures for the removal and subsistence of the ln dians. He represents also other irregularities of a serious nature that have grown mp in the practice of the Indian Department, which will require the ap- propriation of 200, 900 to correct, and which claim the immediate attention of Congress.

 In refiecting the proper means of defending the country, shut eyes to the consequences which the introduction and use of the power of steam upon the are likely to produce in wars between maratme states. We cannot yet see the extent to which this power may be applied in bellgerent oper ations, connecting itself it does with recent i'm provements in the science of gunnery and projectes; but need not 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 ci tizens receive proper encouragement and direction from Government.

 True wisdom would, nevertheless, seem to dictate the necessity of placing in perfect condition those for tifcat0ns which are designed for the protection of principal cities and roadsteads. For the defence of our extensive maratine coast. our chef reliance should be placed our Navy, aided by those inven- tions which are destined to recommend themselves to public adoption-but time should be lost m plac- ing our principal cities the sea board, and the lakes, in state of entire security from foreign as- sault. Separated from the countries of the old World, and in much unaffected by their policy, we are happily relieved from the necessity of main tainng large standing armies in times of peace The policy which was adopted by Mir. Monroe, shortly at- ter the concusio of the late with GreatBritain, ofpreservins regularly organized staff, sufficient for lhe command of large military force, should the cessity of one arise is founded well in economy as in true wisdom. Provision is thus made, upon filling up the rank and file, which can readily be done any energe,cy, for the introduction of system of discipline, both promptly and efficiently. All that is required u time of peace is to maintain sufficient number of men to guard our Notifications, meet any suddtn contingency, and to encounter tine first shock of var. Our chief reliance must be placed on the milth; they constitute the great body of national guards, and, inspired by ardent love of country, will be ready at all times, and at all seasons to re- pair wth alacrty to it's defence. It will be regard ed by congress-, doubt not, at a suitable time, of its highest duties to attend to their complete organization and discipline.

 cannot avoid recurring, in connection with this subject, to the necessity which exists for adopting some suitable measure, whereby the unlimited Iion of banks by the states may be corrected in fu ture. Such results can be most readily achieved by the consent of the stales be expressed in the form of compact among themselves, which they can only enter into with the consent and appreciation of this government consent which might, ia the present emergency of the public demands, ustiably be given by Congress in advance of any action by the States as an inducemem such action upon terms well des fined lv the act of tender Such measure address; ing itself to the calm reflection of the States would find in the experience of the past and the condition oi the present, much to sustain it-aud II is greatly to be doubted whether any scheme of finance can prose for any length of time successful, while the states shal continue in the trained power of ating banking corporation. This power only Le limited by their consent.

 ith the adoption of financial agency of a sats- factory character, the hope may be nduged that the country may thence return 10 state of prosperity measures auxiliary theretO and in some measure in- separably connected with its success will doubtless claim the attention of congress. Among such dis tribution of the proceeds of the sales of the public lands provided such distribution does not force up on congress the necessity of imposing upon commerce heavier burthens than those contemplated by the of 1888, would act efficient remedial measure by being brought directly aid of the As sincerely devoted to the task of preserving just ba

 lance in our system of government by the n,anta- nance of the states in condition the most free and respectable, and in the full possession of all their power can otherwise than feel desrious for their emancipation from the situation to which the pres- sure their finances now subjects them. And while must repudate, az measure founded in error, and wanting constitutional sanction, the slightest ap- proach assumption by this Government of the debt of the yet in the distribution advered much to recommend It. The compacts between the proprietor states and this government expressly gua rautee the States all the benefits which may arise from the sales The mode by which this is to etfec- ted addresses itself to the discretion of Congress the trustee for the states and it's exercise after the most beneficial manner, is restrained by nothing in the grants in the Constitution long congress shall consult that equality in the distribution which the compact requires. In the present condition of some of the states the question of distribution may be regarded as substantially question between di- rect and indirect taxation. If the distribution be made in form other, the necessity will daily become more urgent with tine debtor states for re- sort to an oppressive system of direct taxation, or tleir credit, and necessarily their power and infu euce will be greatly diminished. The payment of taxes often the most Inconvenient and oppressive mode, will be exacted in place of contributions for the most part voluntarily made, and therefore paratively unoppressve. The statrs are emphatcal-

 the constituents of this government, and we should be entirely regardless of the objects held in view by them in the creation of this government, if could be indifferent to their good, The happy effects of such measure upon all the states, would immediate

 y be manifested, With the debtor states it would effect the relief great extent of the citizens from heavy burthen of direct taxation, which presses with severity on the laborng classes, and eminently assist in restoring the general prosperity An inme- diate advance would take place in the price of the state securities, and the attitude oi the states would become once more, as it should be, lofty and erect. With states laboring under no extreme pres sure from debt, the fund which they would derive from this source would enable them improve their con dtion in an eminent degree.

 So far as this Government is concerned, appropri- atons to domestic objects approaching in amount the revenue derived from the land sales might be aban- doned and thus system of unequal and therefore just legislation would be substituted by dispen- sing equality to all the members of this confederacy. Whether such distribution shsud be made directly to the States in the proceeds of the sates or in the form of profits by virtue of the operations of any s cal agency having those proceeds its basis, should such measure be contemplated by Congress, would well deserve its consideration. Nor would such dis position of the proceeds of the saes in any manner, prevent Congress from time to time from passing all necessary pre-emption laws for the benefit of the ac tual settlers-or from making any new arrangement as to the price of the public lands which might in f turc be esteemed desirable.

 The state of the Navy pension fund requires the immediate attention of Congress. By the operation of the act of the Sd of March, 1884, entitled an act for the more equitable administration of the Navy Pension fund" that fund has been exhaustad It will bc seen from the accempanying report of the