cer, in his last moments had said that 'he had wrong- But on this subject I forbear to enlarge. I would I cannot forbear to speak particularly of lieutenant Gansevoort. Next to me in rank on board the Somers, he was my equal in every exertion to protect and defend her. The perfect harmony of our opinions and of our views of what should be done on each new developement of the dangers that menaced the integrity of my command, gave us a unity of action that added materially to our strength. Never since the existence of our navy, has a commanding officer been more ably and zealously seconded by his first lieutenant. Where all, without exception, have behaved admirably, it might seem invidious to particularize. Yet I cannot refrain from calling your attention to the noble conduct of purser H. M. Heiskell and of passed assistant surgeon R. W. Lecock, for the services which they so freely yielded beyond the sphere of their regular duties. Both, moreover, were in delicate health-passed assistant surgeon Lecock was indeed in no condition to go to sea when he joined the Somers. He had recently returned in the Dolphin from the coast of Africa, where his constitution had been completely shattered by a fever contracted in the river Nunez. He came, however, to his duty, determined and apparently likely to die at his post. He has partially recovered, but is still in delicate health. Both he and Mr. Heiskell cheer-1 fully obeyed my orders to go perpetually armed, to keep a regular watch, to guard the prisoners. The worst weather could not drive them from their posts or draw from them a murmur. Of the conduct of sergeant Michael H. Garty, I with promptitude and fidelity. It cannot indeed be will only say that it was worthy of the noble corps concealed that you have convened under circumstanto which he has the honor to belong. Confined to ces in themselves formidable and imposing. The his hammock, by a malady which threatened to be unfortunate financial embarrassments of the state dangerous at the moment when the conspiracy was present obstacles to the progress of legislation which discovered, he rose at once upon his feet, a well it will require your united wisdom and patriotism to man. Throughout the whole period, from the day surmount. To relieve yourselves as far as possible of Mr. Spencer's arrest, to the day after our arrival, from the difficulties you will have to encounter from and until the removal of the mutineers, his conduct this cause, will of course be your first and most imwas calm, steady and soldier-like. But when his duty portant consideration. In order however, that you was done, and health was no longer indispensable to may fully comprehend the nature and extent of these its performante, his malady returned upon him, and difficulties, it will be necessary to recur to that perihe is still in his hammock. In view of this fine con-od in our history when they commenced. duct, I respectfully recommend that sergeant Garty [ORIGIN AND ACCUMULATION OF THE STATE DEBT.] be promoted to a second lieutenancy in the Marine The rapidity with which the banking institutions corps. Should I pass without dishonor through the of the country were multipled a few years since, ordeal which probably awaits me, and attain, in due and the lavish and reckless manner in which they istime, to the command of a vessel, entitled to a ma- sued their paper, increased the circulating medium rine officer, I ask no better fortune than to have the and standard of value to such an extent as to give an services of sergeant Garty, in that capacity. artificial and fictitious value to every species of proI further respectfully recommend that boatswain's perty, to augment the profits in every department of mates, Oliver B. Browning and William Collins, and business to an unnatural degree, and to revolutionize captain of the forecastle, Charles Stewart, may be the regular and settled laws which previously governappointed boatswains in the navy; that gunner's ed the trade of the country. Consequently the wildmates, Henry King and Andrew Anderson, and quar-est and most extravagant spirit of speculation was enter master Charles Rodgers, be appointed gunners. gendered throughout the entire union. and Thomas Dickerson a carpenter in the navy. I New and extraordinary schemes were embarked believe that nearly all of them would make excel-in, and the success with which they were frequently lent forward officers. I know that that all of them, crowned, only served to encourage others still more without exception, would find on the navy register visionary and chimerical. Fortunate, indeed, would associates inferior to themselves. If promoted, and it have been if this spirit had confined itself to the found unworthy, they will quietly fall back into the people in their individual capacity. Such however stations from which they were advanced. It would was not the case; it soon infused itself into legislative be remembered in the navy that in the only mutiny assemblies, and many of the states were induced to which has been regularly organised in it, the stern adopt the most stupendous systems of improvement. law of necessity had, in the opinion of the command-Influenced by the same spirit, stimulated by a laudaing officer compelled him to hang the ring-leaders ble ambition of keeping pace with her sister states, at the yard arm: that the petty officers who had been and encouraged by the apparent success which had found faithful to their colors, had been promoted. attended the enterprizes they had already commenced It will not be recorded whether they subsequently Illinois was in an evil hour lured from the principles failed by sobriety and good conduct to sustain them- of economy and prudence which has hitherto so signalselves in the honorable elevation to which their ly marked her course. In 1837, in addition to the confidelity had raised them. struction of the Illinois and Michigan canal, which If I shall be deemed by the navy department to had been already undertaken, and which of itself, for bave had any merit in preserving the Somers from an inexperienced and almost infant state, was a githose treasonable toils by which she had been sur- gantic enterprise, the legislature adopted a general rounded since and before her departure from the system of internal improvements, the magnitude of United States, I respectfully request that it may ac- which exceeded the wants, in as great a degree as its crue without reservation for my nephew O. H. Per- estimated cost exceeded the resources of the state. ry, now clerk on board the Somers, and that his To realize the funds necessary for the prosecution of name may be placed on the register in the name left this immense system, as well as the canal, reliance vacant by the treason of Mr. Spencer. I think, un- was mainly had to the credit of the state, which was der the peculiar circumstances of the case, an act of made available by the creation and sale of bonds congress if necessary, might be obtained to authorise bearing six per cent. interest, and reimbursable after the appointment. Throughout the whole period of a long term of years. Such was the delusion of the his service on board the Somers he has performed times that it was proposed to pay the interest as it zealously and with ability the duty of midshipman, would accrue upon these bonds by negotiating them and since the discovery of the mutiny with an ener- in foreign markets, and realizing the difference of gy and courage not unworthy of his name. I pledge exchange, by depositing money thus raised with myself to his entire worthiness; if he were not wor- banks until it should be disbursed, and receiving prethy, the navy is the last profession in whose lists miums upon it; and by subscribing for bank stock, would wish to see his name enrolled. the dividends upon which it was expected would For myself, I only ask that in whatever proceed-greatly exceed the interest upon the bonds with ings it may be necessary to institute against me, as I which the stock was purchased." have considered before all things the honor of my country and the sanctity of its flag, my own honour may also meet with consideration. I ask only that I may not be deprived of my command until proved to be unworthy of it. I I have the honor to be, very respectfully, your I respectfully request that the thanks of the navy the Somers, for their exertions in the critical situa- ILLINOIS. Fellow citizens of senate and house of representatives: It is with pleasure that I again address the assembled representatives of the people. The meeting of the general assembly of the state is an event eminently calculated to awaken interest and solicitude in the public mind. The trusts confided to this department of the government are truly multiplied and important. Upon it devolves the duty of anticipating the wants, directing the energies, and promoting the welfare of the country. In a state, therefore, embracing so nuI respectfully submit, that Mr. J. W. Wales, by merous a population, such a variety of interests, and his coolness, his presence of mind, and his fidelity, so extensive a territory, the business of legislation has rendered to the American navy a memorable must be arduous and complicated. But coming as service. I had a trifling difficulty with him, not dis- you do directly from the mass of your cons'ituency, creditable to his character, on the previous cruise to in every portion of the state, it must be presumed Porto Rico-on that account he was sought out, and that you embrace within your number, all the intampered with. But he was honest, patriotic, hu- formation and knowledge which is necessary for mane; he resisted temptation, was faithful to his flag, a clear and comprehensive understanding of the and was instrumental in saving it from dishonor. A responsibilities which your station enjoin. I must pursership in the navy, or a handsome pecuniary re- be permitted to express the anticipation I conward, would after all be an inconsiderable recom-fidently entertain, that as you understand those respense, compared with the magnitude of his services. ponsibilities, you will not hesitate to discharge them Thus it was contemplated by the advocates of this policy to complete those extensive improvements without any expense to the state during their progress. When once in operation, it was maintained that they would yield a revenue not only sufficient for the payment of the interest upon the cost of their construction, but would furnish a surplus which might ultimately be applied to the liquidation of the principal. The people seeing no prospect of taxation, acquiesced in the use thus made of their credit. the close of 1839, when the vast amounts of bonds This policy therefore, persisted in until towards which were so lavishly thrown into the markets, not only by this state, but many others, reduced their price and checked their further negotiation. Thus terminated our unfortunate and short-lived scheme of improvements, leaving the state with less than thirty miles of a single rail road completed, out of the multitude that had been projected, with an immense debt overwhelming her, and without any permanent means whatever provided to meet the interest that was rapidly accruing upon it. By using the proceeds realized from a few unsettled negotiations, and by sums raised by the hypothecation of bonds at reduced prices, the fund cominissioner was enabled to pay the interest until January, 1841. It then became the duty of the legislature to provide more permanent means for that purpose for the future. Such, however, was the exhausted condition of the state, that it was deemed advisable to resort to the desperate expedient of authorizing the sale of bonds at whatever price they would command, in order to raise funds to meet the interest which would accrue in the ensuing two years. This provision it was supposed would be amply | sufficient to enable the state to meet her obligations, and preserve her plighted faith up to the present time. Experience, however, has demonstrated the insufficiency of this policy. Amount sold by gov. Rey- Our bonds had depreciated so greatly in the market, that the fund commissioner deemed a sale inex-Amount sold by general pedient, and raised money to meet the interest which became due in July, 1841, by hypothecation, at a very reduced rate. The still greater depreciation which subsequently occurred, rendered the further use of bonds totally unavailing. It therefore becomes my unpleasant duty to advise you that no in. terest has been paid since the date last mentioned. Such is a brief account of the origin and accumulation of our public debt. [FINANCIAL CONDITION.] In order that you may clearly as possible comprehend the financial condition of the state at the present time, the following tabular statement is submitted: Bonds sold to the state bank of Illinois, on account of bank stock, $1,765,000 Bonds sold to the bank of Il linois, do. Bonds sold to Irwin & Beers Am't advanced by Wright 1,000,000 00 300,000 00 100,000 00 1,000,000 00 145,188 00 197,000 00 Total canal debt, 254,747 00 900,000 -$2,600,000 00 Bonds outstanding on ac- 116,000 00 100,000 66 "Boorman & Johnson, 100,000 Am't due school, college "Lieut. Levy, 4,000 and seminary funds, Amount due state bank for warrants paid, 808,085 00 294,190 00 66 "John Delafield, "A. H. Bangs, "Erie county bank, 477,910 44 283,000 50,000 100,000 100,000 Bank of Commarce, "Com. bank of Buffalo, 100,000 "Nevins & Townsend Amount due on account Recapitulation. Total bank stock, "E. Riggs, do. 50,000 "Bank U. States, do. 100,000 Canal debt, hypothecated to state State house, 120,000 66 School, col. & semi'ry funds, left with Macalister & Stebbins, by do. on deposit, and by them sold, sold to J. Wright 71,000 at a loss to arrive at the true condition of said bonds. I however infer that interest does not accrue upon the bonds, as the statement in the preceding table, furnished me by the secretary to the fund commissioner shows that interest from the 1st of July, 1841, at the rate of seven per cent. per annum, accrues upon the money advanced, to wit: on $172,405. If this view of the case be correct, then the interest upon this last named sum is all that can be chargeable to the state on account of said contract. The contract made in 1839 by the agents of the state with Messrs. John Wright & Co., of London, by which 1,000 canal bonds of £225 each, were placed in the hands of said Wright & Co., with authority to sell for the benefit of the canal, and the contract made by the fund commissioners about the same time with the same company, by which 1,500 internal improvement bonds of £225 each were placed in their hands, to be sold for internal improvement purposes, 3,742,188 00 remains unadjusted in consequence of the insolvency of said Wright & Co., which occurred in the latter part of the year 1840 or early in 1841. In the spring of 1841. the fund commissioner found it necessary to go to England for the purpose 596,719 71 of adjusting the unsettled affairs, growing out of the negotiations made in that country by his predeces$4,338.907 71 sors. With a view of saving expense to the state, I empowered him, associated with Samuel Jaudon and James Morrison, of London, to adjust and settle the accounts of the canal. On his arrival, it was found that Messrs. Wright & Co., prior to their bankruptcy, had disposed of a portion of the bonds, over and above the amount of 1,218,275 00 money they had advanced. The sum of £19,776 5s. 8d. was proved on account of the canal, and £33,913 9s. 8d. on account of internal improvements. Since then, a final set$13,836 379 65 tlement of the estate of said bankrupts has been made, and the assets will yield to their creditors, as I am informed, a dividend of about seventy-five cents to the dollar. $2,665,000 00 5.614,196 94 4,338,907 71 116.000 00 808,085 00 294,190 00 $13,836,379 65 $830,182 77 $3,908,000 00 To meet these liabilities the state has the following £69,225 Inter. improvement scrip, & scrip issued by board of auditors outstanding, $886,669 94 Cash obtained by fund com. upon 724 bonds of $1000 each, hypothe'ed to Macalister & Stebbins, yet outstanding, as per statement of fund commissioner, with interest at rate of 7 per cent. per annum on this sum, Sold to cont's on Northern Cross rail road, 94 bonds of $1,000 each, 84 of which have been hypothecated to fund commissioner, by the contractors for the sum of $42,000, Illinois state bank paper, leaving a balance of resources at present unavailable: Lands purchased by the state for 7,000 00 Amount due canal fund from 7,210,122 00 At the date of my last message John Delafield in the sum of Amounting to 238,985 57 acres. In May last, I received a letter dated London, March the 9th, 1842, from Messrs. Morrison, Sons & Co., informing me, that they had received from the assignee of Wright & Co.'s estate, through Amory, Sewell and Moores, solicitors, 742 canal bonds of £225 each, which would be delivered upon my order. In August last, I empowered the fund commissioner, who then expected to start immediately to England, to receive the dividends as before stated, due from the estate of Wright & Co., and also to receive and cancel the 742 canal bonds, then in the hands of Messrs. Morrison & Sons, and instructed him to apply the money thus received to the payment of interest due upon the canal debt in London. I have, however, since understood, that the fund commissioner has abandoned his contemplated voyage to Europe for the present. If the dividends of the assets of the estate of Wright & Co. equal my expectation, the loss incurred by the state, in consequence of their bankruptcy, will be comparatively small, falling only sixteen per cent. 210,132 85 acres. on account of the canal, below the price originally stipulated to be paid for the bonds, and a loss of fil40,332 acres. teen per cent. will be sustained on account of the internal improvement bonds disposed of and unac489,450 42 acres. counted for, prior to their bankruptcy. The residue of the internal improvement bonds, which were not disposed of by said company, I have $201,964 no account of, but presume they have been recovered by the solicitors of the fund commissioner, or remain in the hands of the assignee of said company. [TOTAL AMOUNT OF STATE DEBT AND ITS INTEREST.] Having said this much, in explanation of items and accounts, that could not otherwise be exhibited, by $433,000 recurring to the table, you will perceive that the 50,000 whole amount of our public debt, upon which inter90,000 est accrues, is $13,836,379 65. 90,000 Assuming, however, that the dividends of the capi67,500 tal stock owned in the banks, will equal the interest upon the bank debt, or that the stock will be withdrawn, and deducting it from the above amount, the sum chargeable with interest will then be $11,171,379 65, the interest upon which at six per cent. per annum, amounts to $670,282 77. For the payment of this sum annually, the faith and credit of the state are solemnly and irrevocably pledged. $730,500 I have, however, been informed by the fund commissioner that a part of the above bonds has since been paid for, and that the remainder has been additionally secured. [MEANS FOR PAYMENT.] If, however, payment should not be made, they will remain I presume in the same attitude as at the last meeting of the legislature, and the opinion I then It therefore becomes your duty, as the guardians expressed remains unchanged: that the state is under of the character and reputation of the state, to prono equitable or moral obligation to redeem them. vide if possible the means of paying this sum.The same reasoning would apply to the 71 bonds of There are but two resources upon which you can 1,069,974 94 $1,000 each, left by the fund commissioner with Mac- rely for this purpose. The first, is the landed proalister & Stebbins on deposite, and by them sold, for perty of the state, and second, a resort to direct taxwhich no payment has been made. Not having been ation. $8,279,196 94 furnished a copy of the contract between the fund commissioner and Macalister & Stebbins, by which they advanced $172,405 upon 724 interest bonds of $1,000 each, hypothecated to them, I am, therefore, The state now owns 489,450 42-100 acres of land, equal in quality and location to any within her limits. This amount includes the land appropriated for town purposes on the canal line. tion. Although this land must ultimately attain great | The products of the country cannot be disposed Owing to the failure of both our banks, and the value, it will be impossible to render it available at of for cash at any price, and remain unavaila- consequent scarcity of money, the produce of the present. This opinion will be confirmed by a refer- ble on the hands of the producers, or are barter-country is reduced to the lowest price, in many ence to the attempt that was made to pay the inter-ed for the necessary articles of domestic consump- places cash cannot be realized for it at all. It will est upon the canal debt by a sale of land. be difficult if not impossible to procure current An act was passed during the session of the legisfunds for the payment of taxes. A just regard for lature of 1840, authorising the commissioners to sell their interest dictates that the least possible amount so much of the canal lands and lots, as would be reshould be exacted from them for this purpose at prequired to pay the interest that would accrue that year. sent. Notwithstanding money was more plenty at that time than at present, and the disposition to invest it in land much greater, and notwithstanding the lands then offered were as valuable as any owned by the state, yet only a small portion could be sold, and the policy had to be abandoned as unavailing. This serves to demonstrate the impracticability of realizing funds from the landed resources of the state, to pay the interest upon her debt. is invited. The greatest inconvenience and difficulty will be The only possibility of relief from the heavy em- should be directed. In view of the difficulties surrounding our affairs, and the crisis at which we have arrived, it will devolve upon this general assembly to devise the means, and adopt such policy, as will most speedily and successfully call into requisition and render available the resources of the state. a [RATE OF TAXATION.] I would therefore earnestly recommend that the rate of taxes be reduced as low as the most economical administration of the government will justify. [CONDITION OF THE BANKS.] The condition of our banking institutions demands your most serious attention. Since the unfortunate alliance between them and the state was consummated, they have been the constant objects of legisla tive favor. In order to make that alliance mutually profitable to the banks and the state, and beneficial to the people, the most liberal policy towards them has been uniformly pursued. Their suspension of specie payments was legalized, and new and extraordinary privileges added to their originally liberal charters. The state contributed her utmost aid to establish their credit and give currency to their circulation. The safe keeping and disbursement of her revenue was confided to one, and the notes of both made receivable in payment of all her dues. Upon institutions thus favored it was natural that people should bestow the full measure of their confidence. Not the slightest doubt of either their solvency or fidelity was entertained. The interests of the country were deemed perfectly secure under their control. It was expected that the facilities they afforded would be ample and permanent, and that their circulation would constitute a safe and convenient currency. All this confidence however was misplaced, and was enjoyed by the banks only to be abused. At the date of my last message, a resort to this measure at the present time, for the payment of inAlthough cash cannot at present be realized for terest, was contemplated, and its practicability was the lands owned by the state, it is nevertheless, not doubted. It was believed by adopting rigid eco- confidently believed, that by the time the outstandnomy in the public expenditures, that not only suffi- ing bonds become payable, those lands will attain cient revenue, for the ordinary expenses of the gov-value at least equal to the whole amount of the pubernment could be derived from the personal property lic debt. and lands then taxable, at the rate of taxes then But as we are unable to pay the accruing interest, levied, but that a considerable surplus might be saved. it is evident that its accumulation will exceed the anThis surplus added to the revenue, that it was anti-nual increase of our means; and when the bonds becipated would be collected from the vast quantity of come due, our ability to meet our obligations will be lands annually becoming taxable, would go far to no greater than at present. wards the payment of interest upon the internal im- Therefore, necessity would seem to point out the provement debt. In the mean time it was expected propriety, if possible, of going into liquidation now, that sales of canal lands would be made to meet the by placing those lands, by legislative enactment, at The most improvident use was made of their creinterest that would accrue upon the canal debt. But the option of the holders of our bonds. dit, discounts were unguardedly made, accommodathis expedient as before stated, has failed, and now By this means it is believed that the interest of tions imprudently granted, and their issues extendthis debt, if provided for, must become like that of the public creditors themselves would be promoted, not only beyond all the bonds of moderation and the internal improvenient, a burden upon taxation: it ed to a very great degree, as it would afford them prudence, but greatly beyond their ability to redeem therefore becomes necessary from this single source, the opportunity of realizing lands upon equitable them. to raise annually, for purposes of interest, $670,282 terms, for the bonds they hold, which otherwise | The inevitable consequence of this impolitic and 77 instead of $320,700. Nor is this the only obsta- must continue unavailable upon their hands, so extravagant course, was a resort for the second time cle, great as it is, that must be encountered in adopt- long as the interest accruing upon them remains uning this policy. The experience of this, and the past year, has shown that the revenue derived from the natural increase of personal property, and the vast quantity of lands annually becoming taxable, will little more than compensate for the reduction produced by the decrease in the value of taxable property, caused by the pecuniary embarrassments of the country. By reference to the assessment list, it will be seen that the quantity of taxable lands for the present year exceeds that of the last more than 3,000,000 of acres, which, at the lowest valuation, increased the revenue $27,000. Yet the reduction upon the value of property previously taxable was so great, that the aggregate assessment of the present year is only increased $10,000. It ought not to be overlooked that this great reduction in the value of taxable property has occurred under the operation of the precautionary provision enacted by the last legislature, fixing the minimum valuation of taxable land at three dollars per acre, without which it is evident that that reduction would have been much greater. It is now obvious, that in consequence of the almost total annihilation of our circulating medium, that a still greater reduction in the value of taxable property must ensue for the next year, and be continued from year to year, so long as the cause which produced it shall exist; while the quantity of new lands annually becoming taxable, will be rapidly diminished. Thus, it will be perceived that the hopes which were formerly so confidently indulged, of paying the interest upon our public debt by this means, have been doubly disappointed. We cannot now expect to realize a revenue from taxation, sufficient to pay any considerable portion of it, without greatly increasing the rate. Under existing circumstances, however, the present rate is found to be so burthensome and oppressive, that I have felt constramed, in another part of this communication, to recommended its reduction. paid. The adoption of this measure would at least evince RETRENCH to a suspension of specie payments. The disregard of principle and faithlessness manifested by this act should have deprived them at once of all legislative support. But at this time they had entwined themselves almost indissolubly around the interests of the country. Every department of business and trade was entirely at their mercy-the people and state were completely within their grasp. The pecuniary embarrassment and distress that would have been occasioned by the sudden withdrawal of their paper from circulation was truly alarming. Influenced by these considerations, and deceived by the deceitful prospects held out by the banks, that In consequence of the depreciation of the notes of they would in a short time be able to recover from the state bank of Illinois, it became my duty, in con- their difficulties, the legislature, which assembled junction with the auditor and treasurer, under to pro- soon after their suspension, again rendered its aid visions of an act entitled "an act, concerning the and indulgence. The utmost liberality and lenity payment of revenue, and for other purposes, ap- was extended to them at that and the succeeding sesproved January 16th, 1836, to publish a proclama- sion. Every measure that would tend to relieve their tion, prohibiting the collectors from receiving the embarrassments and sustain their sinking credit was paper of that institution, in payment of revenue, from freely adopted. By pursuing this policy they merely and after the 12th of September last. In order still postponed a calamity which it was not in their power further to protect the interests of the state, it be to avert. came necessary to address the collectors a subsequent communication admonishing them that the notes of the Bank of Illinois could not be received for more than their current value, and requesting them to suspend the further collection of revenue until after the meeting of the legislature. It is understood that this request has been generally complied with, and in most of the counties no collections have yet been made. This course was suggested under the impression that little or no injury would result to the state, in consequence of the delay, and that you would have it in your power to relieve the people from at least a portion of their burthen. It was believed by introducing proper reform and retrenchment, the ordinary expenses of the state govenment might be reduced greatly below former estimates. With a view to this object a plan will be submitted for your consideration by the proper officers exhibiting the various items of expenditure upon which reductions may be made. Should this plan prove practicable, the rate of taxes levied upon the present assessment may be reduced nearly one half. As the revenue now due is designed to meet the expenditures for 1843, the proposed reduction may be apIn many places money cannot be realized in suffi-plied with great propriety to the assessment of the ient amounts to answer as a medium of exchange. present year. Owing to our accumulated misfortunes, the tides of emigration and wealth have ceased to flow into the state. All the channels of trade are completely obstructed, and the vitality of business seems almost Extinct. That calamity has since fallen upon the country with a paralyzing force. The paper of the banks has depreciated to about one-third of its nominal value. Thus, a loss has been inflicted upon the country corresponding to this depreciation, upon the whole amount of their notes in circulation. The injury they have in this manner occasioned has been greatly aggravated and increased by the peculiar circumstances under which it occurred. The failure of a multitude of banks in the neighboring states, and the great reduction which had been effected in the circulation of others, preparatory to a resumption of specie payments, had caused an exclusive reliance for a currency upon our own institutions. The sudden depreciation of their paper has therefore almost entirely deprived us of a circulating medium. They still remain in a state of suspension, and will, I presume, in some manner, be made the subject of legislation. [REPEAL OF THEIR CHARTERS RECOMMENDED.] Should you merely withdraw your support from them, and leave them in the possession of their chartered privileges, by availing themselves of the reduced value of their paper, they will probably be able at some future period, to resume specie payments, and to some extent, regain their credit. tors. This conclusion is strengthened by the consideration that while the people conferred upon congress the power to collect revenue for the support of the general government, they reserved to the states all the authority and power necessary to collect revenue for the support of the state governments respectively. [ILLINOIS AND MICHIGAN CANAL.] known that the provision of selling bonds at par, for At the last session of the general assembly it was the construction of the Illinois and Michigan canal, which had been previously made, owing to their depreciation in the market, had become and was likely to continue unavailing. In consequence, however, of the exhausted means and fallen credit of the state, no further provision for its prosecution could be made. Since that time, the only reliance for the progress of the work has been the remainder of the proceeds of the sale of 1,000,000 of bonds negotiated by Gen'l Thornton, in 1840. After these funds were exhausted, a portion of the contractors prosecuted their contracts to completion, and proposed to receive from the canal commissioners bonds at par for the estimates due them. Accordingly, bonds were executed and paid to them to the amount of $197,000. But the unprecedented depreciation of Illinois stocks about this time in the eastern market rendered a further continuance of this expedient unavailing. Since then the principal operations upon it have been carried on by the contractors, without any aid from the state, in order to finish existing contracts, and unless means can be derived from some new source, the further prosecution of this work at present is impossible. For a statement of its progress and present condition, I refer you to the report which will be submitted by the board of commissioners. According to a statement recently received from the acting commissioner, the amount which has been expended towards its construction is computed at about $4,800 000, and the amount which will be required for its completion is estimated at $3,000 000. Should this ever happen, there is every reason to ap- The revenue derived from these two sources being | the national treasury by a loan. The extravagance prehend that it would only be to repeat their course in its character the same, congress cannot exercise and folly of this measure, can only be accounted for of imprudence and folly, and to expose the country any more power over one portion than it could over by the corrupting influence of the distribution policy. again to its ruinous and withering effects. They the other. If therefore, it can distribute the pro- The moment the states yield to this tempting influ have already failed to accomplish the object for ceeds of the sales of the public lands, it follows that ence, their independence and sovereignty will be at which they were created, and have proved them- it can also distribute the revenue collected from an end. The privilege of expending the revenue, selves utterly unworthy of trust or confidence. A customs. It then becomes a question, whether or without any of the restraints which the responsibilijust regard for the public interest requires that their not the constitution of the United States clothes ty of its collection imposes, will destroy every princorporate existence should be speedily terminated. congress with the power to collect revenue for the ciple of moderation and economy. The extravaAs the most direct and effectual mode of attaining purpose of distributing to the states. The powers gance which would thus be engendered, would furthis object, I would recommend a repeal of their conferred upon congress by the constitution, are of nish congress with a pretext for collecting by means charters. The power of a succeeding legislature to two classes: first, those which are expressly delegat- of oppressive duties an enormous revenue from the repeal any act of a preceding one affecting the pub-ed; and second, those which are essential or necessa- people, or for encumbering their labor and industry lic interest, results from the very nature of our in-ry to the exercise of delegated powers. The distri- perhaps for ages to come with an immense national stitutions. It is the only effectual security of the bution of the revenue or any portion of it among debt. rights of individuals against the invasions of corpo- the states, is not enumerated among the delegated rate bodies. The period has arrived when it has be- powers, nor will any one, I presume, maintain that come necessary that this power should be asserted it is essential to the exercise of any delegated power. and exercised. The careless and unguarded manner If this view of the subject be correct, the distribuin which chartered privileges have been granted, the tion of the proceeds of the sales of the public lands boldness and impunity with which those privileges among the states, is not warranted by the constituhave been abused, and the injury which has thus tion, and is therefore an usurpation on the part of been inflicted upon the people, forcibly illustrate the congress. absurdity and danger of subscribing to the doctrine of vested rights. The only effectual mode of restraining the grasping and overreaching spirit of monopolies, and of confining them within their chartered limits, is by a prompt and wholesome exercise of the repealing power. Prudence, of course, would die tate that this power should never be wantonly or unnecessarily employed, but when the conduct of a cor-i Having thus pointed out the unconstitutionality of porate institution renders it necessary, or the public this measure, I should leave it without further comwelfare demands it-it should be unhesitatingly exer- ment, were it not for the fact that it is presented to eised. The unwarrantable conduct of our banks, you under circumstances somewhat peculiar. The and their relations to the interest of the people, ren- great financial embarrassments under which the der them in my estimation proper subjects for its ap- state is laboring, furnish a pretext, though not a jusplication. Should you concur with me in opinion, tification, for your accepting the money that has acand repeal their charters, it will become your duty to crued to this state under the provisions of the distriprovide by law for a final settlement of their ac- bution act. The necessities of the state, however counts, in such a manner as to secure as far as pos- great they may be, cannot, in the slightest degree, sible the rights of both the stockholder and credi- justify you in sanctioning the violation of the sacred principles of the constitution. The importance and [DISTRIBUTION OF LAND PROCEEDS. No AGENT AP-value of those principles cannot be estimated by palPOINTED TO RECEIVE THE QUOTA OF ILLINOIS.] try considerations of money. They are the landA communication was addressed to me by the act-marks which have guided our course through periods ing secretary of the treasury, dated November 4th, of prosperity, and must not be lost sight of in sea1842, stating "that the accounting officers have ad- sons of adversity. Prudence, as well as consistenjusted the accounts of the several states and territo- cy, requires that we should at all times and under ries, under the act of congress entitled "an act to ap- all circumstances, insist upon a rigid adherence to propriate the proceeds of the sales of the public lands, them on the part of our rulers. Your action thereand to grant pre-emption rights," approved Septem- fore upon this subject, whatever it may be, must be ber 4th, 1841, and that the sum of $46,289 35 (in- regulated, not by considerations of the convenience cluding the additional ten per centum) has been or necessity of the state, but by solemn convictions found due to the state of Illinois. From this, there of your duty as legislators under the constitution.will be deducted the amount due the United States Another pretext for accepting the portion of the dison account of interest due and unpaid on certain tribution money, now due the state, is found in the stocks of the state, held by the United States, and fact that the law making the distribution, is suspendthe balance will be duly paid on the application of ed in its operations, and no further distribution will the authorised agent of the state." The third sec- probably take place. This, however, is an erronetion of the act above recited provides, that the dis-ous view of the subject. The acceptance of any tributive share of money due to any state or territo- portion of the money by the legislature of the state, ry under the provisions of the law shall be, paid to would be a full and complete acknowledgment of the any person or persons whom the legislature thereof constitutionality of the law. Its completion would give a new and powerful imshould authorise to receive the same, or in case the would be established for the regulation of all future throughout the entire state, and to this source, more And thus a precedent pulse to every department of business and industry legislature was not in session, to any person or per- legislation upon the subject. sons whom the governor should appoint. The period than to all others combined, we might look for relief It must not be forgotten that the suspension of the from our present difficulties. of time which was to elapse between the receipt of law is only temporary, and that its operations will be would present, and the facilities it would afford, The advantages it the above communication and your meeting was so renewed whenever the causes which have produced would cause tides of emigration and floods of wealth short that the state could not be injured by the de- the suspension shall cease to exist, or be removed by to pour into her bosom. Capital would be invested, lay, and as I conceived the matter of sufficient im- the further action of congress. That one or the oth-manufactories erected, and improvements multiplied. portance to require your action, I thought proper to er of these contingencies will soon happen, there can While the revenue, which would be derived from the decline authorising an agent to receive the money, be little doubt. The policy of distribution is pro-rents of surplus water power and tolls, would furn and now subunit it entirely for your consideration.gressive in its nature, and will not be easily checked. ish a permanent and increasing fund which might be I was more strongly prompted to adopt this course This is manifest from the insidious, though rapid applied to the payment of interest upon the public by a knowledge of the fact, that the legislatures of progress it has made since its development up to the several of the states have not only refused to accept present time. the sums of money to which their states respectively became entitled under the provisions of the same of disposing of the surplus revenue was in agitation. It first disclosed itself in 1836, when the question law, but have expressed in strong and decided terms The obstacle which the constitution of the United Although we have no means which we can apply their entire disapprobation of the distribution poli- States presented against its distribution to the states, to the prosecution of the canal at present, yet its cy. The patriotism and devotion to principle that could not at that time be overcome. This obstacle was great importaace, and the vast amount which has these legislative bodies have evinced, by resisting the however circumvented by the provisions of the act been already expended upon it, when compared with influence of this seductive and dangerous policy, of congress, entitled "an act to regulate the depo- the sum wanting for its completion, forbid the idea cannot in my estimation be too highly commend- sites of the public money," under which the surplus of its abandonment. I would, therefore, respectfulIt would be a source of great gratification revenue was virtually distributed to the states. At ly submit the propriety of memorializing congress to should you in your wisdom think proper to imi- the special session of 1841, the constitutional barrier grant to the state an additional quantity of lands, tate their example. was effectually broken down, and an act passed by which, together with what remains of the former [UNCONSTITUTIONALITY OF THE DISTRIBUTION ACT] Congress to distribute to the states the proceeds of donation, will be sufficient for the remaining cost of The distribution of the proceeds of the sales of the the sales of the public lands. This act was passed public lands to the states, is manifestly an exercise of when there was no surplus in the treasury, when a With a view to this object, our efficient and praisepower on the part of congress not delegated by the con- debt of many millions was hanging over it, and when worthy senator, R. M. Young, has introduced a bill stitution of the U. States. The revenue derived from only a few weeks previous to its passage, and during into the senate of the United States, appropriating the sales of the public lands does not differ in any re- the same session of congress, it had become necessa- 477.813 acres of land for that purpose. This quanspect from the revenue collected from customs. This ry to authorise a loan of twelve millions of dollars tity is necessary to raise the grants made to this is evident from the fact, that the cost of purchas to defray the expenses of the government. At this state to an equality with those already received by ing and surveying the public lands is paid out of the time some of the states, it is true, were deeply in the state of Ohio. The bill was referred to the app revenue derived from customs, and whatever deficit valved in debt, but others again were not only entire-propriate committee, and will probly be reported is occasioned in the United States treasury by the ly free from debt, but actually had surplusses in their and acted upon during the present session of condistribution of the former, must be supplied by the treasuries. Yet it was proposed to distribute the gress. Should it be properly urged its success is latter. land revenue to the states, and supply its places in confidently anticipated." ed. It is to be deeply lamented that our embarrassments are such that we cannot at present realise this sum for so noble a purpose. The completion of this magnificent work has long been anticipated as the grand achievement which was to distinguish and give character to Illinois. The sublimity of con necting the great chain of northern lakes with the majestic Mississippi, could only be equalled by its utility. The advantages of this communication in order to be fully appreciated must be realized. debt. [MEMORIAL FOR AID FROM GENERAL GOVERNMENT SUGGESTED.] its construction. The importance of opening this communication and others mentioned in the law, was merely regard not only to Illinois, but to all the states and territo-ed as an act of justice, which was necessary in orries bidazing upon the Lakes and Mississippi. as der to place them upon an equality with those which well as the facilities it would afford, for the trans-had previously received similar grants. portation of the reals, and in case of war the troops and rom it us of war, mark it as an enterprize of high national charteter. [REAPPORTIONMENT.] [CONCLUSION.] Having thus, in an imperfect manner, presented a few of the most prominent subjects which demand your consideration, such other matters as may solicit Under the provisions of an act of congress enti- your attention I must leave your own wisdom to sugtled "an act for the apportionment of representa-gest. I sincerely regret that it has been my duty to tives among the several states according to the sixth exhibit so dark and gloomy a view of our present census," Illinois will hereafter be entitled to seven condition. It is truly unfortunate that the errors of members. It therefore becomes your duty to pro- past legislation should have impeded the progress, vide by law for the election of that number of repre- and almost destroyed the prosperity, of the state. sentatives to the twenty-eighth congress. It cannot But the experience we have had, and the lessons of fail to be a source of gratification and pride to the economy it has taught, will enable us in time to recitizens of Illinois, that while the ratio of represen-pair the injuries that have been inflicted. And I tation has been raised so high as considerably to di- confidently hope that the energies of the people, aidminish the aggregate number of representatives, and ed and encouraged by wiser councils, will rapidly of course to reduce the representation of many of develope the resources of the state, and soon place the states, such has been the almost unexampled in-her upon that eminence which she is at some future crease of our population since the last apportion- period destined to attain. I should do injustice to ment that our own representation has been more my feelings were I close this my last official communication without expressing the profoundest sense of my gratitude to my fellow citizens for the kindness and partiality they evinced in elevating me to the station from which I am about to retire, and congratulating them upon their choice of a successor, whose experience, integrity and talents so eminently qualify him for discharging the responsibilities he is about to assume. than doubled. [ELECTION LAWS.] In conclusion, I would invoke upon your labours the blessings of Him whose province it is to rule the destiny of nations. May He endow you with understanding and wisdom, that will enlighten and guide your deliberations, that your acts may prove salutary to the public good. THOMAS CARLIN. Springfield, December, 7, 1842. THE ARMY. Headquarters of the army, Washington Nov. 14, 1842. | are anxious to join their proper tribe, beyond Arkansas, early in the spring. When all the fragments of tribes shall be brought together, and the insignificance of thei. numbers seen, with the fact that perhaps nnt a family remains uabroken, the desire of reunion in the distant west can hardly fail to become almost universal; and this expectation was a great motive to the arrangement now in a train of successful execution. As was feared, but could not have been entirely prevented, some murders were committed at the beginning of the arrangement, by parties of distant Creeks, before runners could find them, to communicate orders for stopping hostilities. After a delay, this was done, and it is not known that any subsequent painful event has occurred. Brigadier general Worth visited the north on duty, and for a little merited recreation, late in August.He was back in Florida at the beginning of this month. In that short absence he has been well represented by colonel Vose, of the 4th infantry, who has taken all proper measures to protect the exposed citizens, and to stimulate the collection of the Indians. His exertions, under the circumstances, have been crowned with reasonable success, and both commanders are probably now (the 11th) at Tampa Bay, to meet the Creeks, (by appointment of the colonel,) who are en route to the district which they are temporarily to occupy. Before closing this paper, we may hope to receive further satisfactory intelligence from that quarter. Besides two companies of the 3d artillery at St. Augustine, and two of the 7th infantry at Fort Brooke, (Tampa Bay,) intended as permanent garrisons, the 3d and 8th infantry are held on the theatre of recent hostilities, to observe the full execution of the arrangement with the Indians, and, at the same time, to reassure the neighboring citizens. After a few months, it is probable that both regiments will be disposable for other points, where their presence is constantly needed. The transfers of troops, within the year, have been numerous, mostly from Florida, and in proportion as the war in that quarter approached to a close. The frequent recurrence of abuses of the elective franchise in this and other states, should admonish us of the necessity of more carefully and more effectually guarding that right. With a view to the accomplishment of that object, I would respectfully, but earnestly recommend, that the laws regulating elections be revised and so amended as to increase the penalties to be inflicted for their violation. And, also at all future elections in this state to prohibit persons from voting in any precinct except the one in which they may actually reside. This provision, while it would not abridge the rights of any voter, would protect the institution from frauds and corruption. And although it might operate inconveniently in some instances, yet its necessity, and the REPORT OF THE MAJOR GENERAL OF importance of the object to be attained by it, would abundantly justify its enactment. The preservation of this right in its utmost purity is essential to the maintenance of all our other republican institutions. Through its exercise alone can the majority of the The 6th infantry left the theatre of operations in people peaceably redress their wrongs, enact their February, to take position at Jefferson barracks laws, and select their rulers, and retain the powers (near St. Louis) as a western reserve; thence, on of government in their own hands. While its exer- Of field operations there have been none, except an alarm, it proceeded to the upper Red river in cise secures us the enjoyment of all the privileges under Colonel (since Bravet Brigadier General) April, where, leaving six companies, four returned to and immunities of freemen, its abuse would be Worth, in Florida. His movements against the hos- garrison Forts Smith and Gibson, on the Arkansas. equally fatal to our liberty. Its corruption would tile Indians in that territory, during seven months, The 3d artillery followed in March, to garrison the subject the virtuous and intelligent majority to the commencing with December, were numerous, inces- works in Pensacola harbor, at Mobile point, New usurpation and tyranny of a vicious and ignorant mi- sant, well combined, and attended with great general Orleans, and its vicinity. The 2d infantry was the nority. Thus, this institution, instead of protect- success. The officers, down to the junior in rank next to embark (in May) to relieve the 4th artillery in ing and supporting the government, would become with scarcely an intermediate exception, gave to the the works from Lake Erie to the foot of Lake Ontathe means of its overthrow. It would therefore seem chief in command a zealous and effective support, rio, when the latter regiment came down to garthat any provision which may be necessary for its and were, in turn, well sustained by the hardihood rison Fort Monroe, Hampton Roads, Fort Severn, preservation should be promptly and unhesitatingly and patient endurance of their men. At intervals Annapolis, and Fort McHenry, near Baltimore. adopted. all were chcered by partial captures. The principal The 2d infantry also relieved a company of the LAND DONATIONS FROM THE GENERAL GOVERNMENT. Combat occurred in April, and was waged with spirit Ist artillery at Plattsburg, (Lake Champlain,) By an act of congress, entitled "an act to distribute on both sides, between a few companies of different which thence went to Fort Adams, (Rhode Island,) the proceeds of the sales of the public lands, and to regiments under the gallant Worth in person, and and the 4th artillery found one company of the 24 grant pre emption rights," approved September 4th, the desperate band of Halleck Tustenuggee. The artillery at Fort Monroe, which then joined others 1841, the quantity of 210,135 85 100 acres of land result, on the spot, was the total defeat of the enemy of the same regiment in the harbor of New York.was granted to the state of Illinois. An act was pas- with a small loss on our part, soon followed by the Of the five troops of the 2nd dragoons remaining in sed on the 19th of March, 1842, authorising the capture of the entire band and its enterprising lea- Florida at the date of my last annual report. four governors of the states of Illinois, Arkansas, and der. Lieutenant Colonel Garland of the 4th, Major marched in June: one was halted as a part of the Missouri, to select the lands granted to those states (since Brevet Lieutenant Colonel) Belknap of the garrison at the Baton Rouge arsenal; three joined the respectively. 8th, major Plympton of the 2nd, (infantry regi- first half of the regiment on the Red river; and the In conformity with the provisions of this act, I ap-ments,) and captain Ker of the 2nd dragoons, (each troop left in Florida has since (in September) been pointed agents. and caused the before-mentioned added to the garrison of Baton Rouge-a favorable quantity of land to be selected and located, with the position whence to ascend any of the western rivers, registers of the land offices in the different districts or to descend to New Orleans. The 7th infantry, in which the selections were made. In selecting The forced surrenders, on this and many previous stationing as has been said, two companies at this land, the agents were directed to visit and exa- occasions, had now reduced the Indians at large to Tampa Bay, left the field in June, to relieve the 31 mine every separate tract, and to select none but the perhaps less than 300-including men, women and artillery along the Gulf, west, and about New Orfirst quality. By the accompanying reports you will children-widely scattered over the territory, in leans, when the latter regiment passed around to the perceive that they discharged the trust confided to small fragments of bands. The president having Atlantic, and now occupies Fort Marion, St. Augusthem with great care and fidelity. The land is re- decided on a corressponding change of measures, his tine, (Oglethrope barracks, Savannah,) Fort Moulpresented to be of the finest quality, and advantage-views were despatched to colonel Worth, May 12th. trie, (Charleston harbor,) Fort Macon. (Beaufort, N. ously located, and will, I have no doubt, prove high- Under his judicious management, a cessation of hos- Carolina,) and Fort Johnson, (below Wilmington, on ly valuable to the state. Although this land was tilities was early brought about, on the condition that the Cape Fear); and, finally, six companies of the granted by the law which provides for the distribu- such of these Indians as might not choose volunta- 4th infantry left Florida in September, and have been tion of the land revenue among the states, to which rily to emigrate to the west shonld pass without un- joined by three from the Arkansas, of the same regimeasure I have felt constrained in another part of necessary delay, into certain narrow limits in the ment, at Jefferson barracks. The reserve in this this communication to express my decided objec-south of the territory, and far from the resident citi- central position, now consists of but eight companies tions, yet those objections are not applicable to a zens. -one of the same regiment being still at Baton Rouge and another having recently gone to a new post on the Marmatou, west of Missouri. the commander of a small detachment,) together with grant of land. Congress cannot distribute the pro- The Indians who were at the time below Tampa This enlightened and liberal policy was long since adopted, and extensive donations made to several of the states. The present grant, therefore, to Illinois, their promises-dilatoriness, under the circumstan- The same alarm that took the 6th infantry to Red river caused the march of five troops of the 1st dragoons from Fort Leavenworth, on the Missouri, as far south as the Arkansas. They have returned north, and Fort Wayne, in the Cherokee country, having been abandoned, its garrison (two troops of the same regiment) were ordered to establish the new post on the Marmatou. There have been a few other transfers of single companies, which, with the actual distribution of the whole army, wl be sufficientlp seen in the table (C) herewith. |