In my message at the opening of the last session it was my happiness to congratulate you on the pros-

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perity then so eminently enjoyed by every portion of our beloved country; and from my inmost heart did I rejoice to see the industrious citizen every where reap the rich rewards of his labor. And although even then, I was not without strong apprehensions of an early reverse, I am confident no human forecast could have anticipated, so sudden a calamity as has been brought upon the country by the action of the Federal Government upon its currency. At the time the President of the United States assumed the responsibility of ordering the public moneys to be removed from their legal deposite in the Bank of the United States, for the purpose, as he avowed, of preventing the re-charter of that institution by Congress, there never was a sounder currency, or a more healthy state of things in any government in the world. To effect this great object, namely, that of destroying the United States Bank, rival institutions were to be created: and it will be remembered that immediately after the removal of the deposits the Government party commenced establishing State Banks, whilst State Legislatures, deluded by the fallacious promise of advantages to be derived from the deposites to be made in these institutions, which were to be fiscal agents of Government, readily fell into the measure. As might have been expected, hundreds of new banks instantly sprung up, their enormous issues of irredeemable paper afforded the inducement of universal extravagant speculation, and gave us what all must now regard a depraved and worthless currency.

Before the public were aware of the ruin which this wild scheme portended, the Executive and a portion of its party seeing their error it would seem, endeavored to escape its consequences by amusing the people with the absurd and impracticable project of an exclusive hard money currency. I say absurd—for as well might the Executive of the United States expect to compel the citizens of the great valley to abandon the use of steam boats and resume the flat bottom and barge in the navigation of its thousand streams and rivers as to force them to give up a sound paper currency, at all times convertible into specie, with all its adaptedness to the purposes of the commerce and business of the country. Before such a scheme can be prosecuted to the results they promised, the intelligence, commerce, liberties and boundaries of all of these United States must be obliterated, and the people yield to the stubborn will and rule of a despot. These Experiments, as they have been styled by their authors, may and I believe have had

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their political effect; but they have also had their effect upon the country acknowledged to be full of resources, distinguished for its intelligence, its enterprise, and wonderful prosperity, in reducing it to an almost universal bankruptcy; in prostrating alike its business, its energies, and confidence.

It was in view of the motive which dictated the measure, and in anticipation of some of these results, that I opposed at first, the establishment of the State Bank of Illinois; as I did also last winter, both the increase of its capital and that of the Bank of Shawneetown.

But it is easier sometimes, to trace the causes of evils, than to find out a remedy for them. The enquiry, however, is important and useful, as the discovery of the cause, not unfrequently suggests the remedy. That you will have it in your power, to do all demanded by the present exigency, is more than I dare hope. Probably as much as can at present be effected, will be to place our own State in such an attitude, as to parry off the blow, and stay as far as possible, the effects of the crisis upon our interests, until Congress, the only legitimate power under our Constitution, shall regulate the currency, and restore it to its former sound condition and beneficent action.

The connection of the State with the Banks of Illinois, renders an attention to its affairs, a matter of immediate and imperative duty.

By an act to increase the capital stock of certain Banks, &c.[etc.] approved March 4th, 1837, it is made the duty of the Fund Commissioners, to subscribe two millions of dollars to the State Bank of Illinois, and one million to the stock of the Bank of Illinois at Shawneetown; and by the 11th section of said act, the Bank is made the fiscal agent of the State. One thousand shares of the stock of the State Bank of Illinois were subscribed for by the State, for which $100,000 of public money was paid in MARCH last. The Bank took the loan negotiated last year in New York, of $100,000, for which it agrees to place a credit in the Bank, to the Canal Fund for $105,000, including five per cent. premium. It has also agreed to pay the State Bonds for the Wiggins’ loan of $100,000. The Auditor’s books show a deposite of State funds now in the Bank of $388,669[.]51. The report of the Canal Commissioner, of the 23d of May, shews a deposite of Canal funds in the Branch at Chicago, to the amount of $285,834[.]89.

There is $60,000 of the State funds on deposite in the

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Bank at Shawneetown, and the Commissioners of the School Fund, hold a draft from the Treasury of the United States on it for $16,100, which several sums make the responsibilities of these Banks to the State, amount to $1,055,604[.]40. These Banks both having stopped paying their notes in specie in May last, and as by the 25th section of the act, incorporating the State Bank of Illinois,—approved Feb. 12th, 1835, and by the supplement to said act, Approved January 18th, 1836, it is provided, that if said corporation shall neglect or refuse to pay its notes in specie for sixty days, it forfeits its charter, and is required immediately to discontinue all its operations, except for receiving and collecting its debts; and as it is believed, that while all other Banks refuse, the Banks of no one State, however solvent, can safely or long continue to pay specie for their notes; it will be perceived, at once, that immediate Legislative action is indispensable for the protection and security of those important interests. In the adoption of any measure which your wisdom may suggest, in relation to the Banks, or for the better security of the interests of the State connected with them, care should be taken to require a reduction of their notes in circulation, and prevent any increase of their responsibilities, so as to ensure a resumption of specie payments as early as possible.

It can admit of no doubt, that if the Banks of Illinois, which are known to be as solvent as any other banks in the country, under existing circumstances, were to persist in paying out specie for their notes, the result would be, at no long period, an entire transfer from their own to the vaults of other Banks—the ultimate but sure loss of their capital—the imminent jeopardy of the State funds—and be so crippled, if not crushed in their operations, as to embarrass most seriously, the movements of the community at large; and not less seriously, the improvements, business, and commerce of the State, with all of which it is intimately connected.

For the same important considerations that I opposed the act, requiring the Fund Commissioners to subscribe on behalf of the State for three millions of dollars of the stock of those Banks, to be paid for by the sale of State bonds, I am now satisfied ought to be repealed forthwith, and do accordingly recommend it to be done.

Your attention should also be directed to the Surplus Revenue, the fourth instalment of which becomes due on the 30th day of September next; inasmuch as the Banks in which it

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was deposited have all stopped specie payments; and your resolution requires the Treasurer to receive it only in specie, which at present is impracticable.

In the midst of the disasters which have already fallen on the commercial world, and which are still threatening us on all sides, a favorable opportunity occurs to escape from the perils of that system of Internal Improvements adopted last winter, which to my apprehension os so fr[a]ught with evil: and for the reason assigned when I refused my assent to the enactment passed in its favor, as well as from existing pecuniary troubles and derangements, I now recommend its repeal.—Aware that it is always difficult, and sometimes grievous, at least partially, to abandon even a bad system after the interests of society have become identified with it, it is with reluctance, much more in regard to this fact, than hesitation as to the propriety of the step, that I urge the recommendation: especially, too, as my conviction is deep and firm that such undertakings belong rather to arbitrary and despotic Governments, than to the republican institutions of a free people, as by the power of patronage and official influence, they tend to corrupt the many and exalt the few. In all the melancholy histories of departed liberty, the process of decay commenced in the people’s neglect and disuse of their own rights and privileges, and progressed in the ignorant and fatuous transfer of them to their rulers. And of all the dark symptoms which indicate the evil at work in our own system, none seems so fearful, so alarming, as the steady, nay, rapid departure of power from the hands of the people to the hands of the Government—a fact sufficiently obvious to all who have observed the political movements of the last eight years.

If to the power and influence which necessarily belong to political station there be added the immense patronage no less involved in extended public works, there may come a struggle between the people and their rulers; but too late for the former to regain what the latter have stolen. Let the present pernicious system be rescinded, and in its stead adopt the safer, the more generous, more economical, most expeditious, and in every respect the preferable plan of encouraging private individuals and corporations by suitable aid from the State—and thus escape the intrigue, venality, waste and corruption inherent in that patronage which must grow out of such as system as the present.

A report of the Board of Internal Improvements to the Executive of 5th June, is herewith enclosed, which exhibits its operations to date. A report and correspondence of the Canal Commissioners are also transmitted. By the correspondence, it will be seen that the calling of the Legislature together has been urged upon the Executive by them as necessary for the carrying on of that favorite work, and because of the probable difficulty of collecting the 2d instalment on the lots sold in Chicago, which fell due on the 20th of June last.

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Having received a letter from the Board informing me they would make a full report to the Legislature of all their operations present and plans for the future, I will leave this subject with an earnest recommendation of it to your fostering care: hoping that this great work will be carried forward with all the expedition, consistent with a just economy. As I consider it a national work, and ourselves as managers of the fund, appropriated by Congress for its accomplishment, it would seem to be our duty faithfully to apply these means; and upon its completion, after a suitable reservation for repairs and improvements, and with due consideration for the rights of the State, it will be equally our duty and interest to make this canal free as the waters of the lake.

Unpleasant as the subject is to myself, and may be to others, I feel bound again to call your attention, and through you that of our constituents, to the affairs of our National Government, especially of its Executive branch; to the action of which I confidently believe many of the evils we are now suffering, and with which we are threatened, are fairly to be attributed. There must be change there must be reform. The Public Treasury must be again firmly placed in the custody of the law; and all power and control over it by the Executive of the United States must be repudiated. The Executive should be prohibited under severe penalties from establishing a rule in violation of law to collect the revenue in one quarter of the country in specie only, and in another to collect in bank paper; or from using any other means for diverting the specie (which is the only safe basis of exchanges) from the ordinary channels of business. Congress must regulate the currency by law, and place it out of Executive or official power, either to try experiments, or make speculations upon it. The patronage of the Executive must be reduced, and his power to remove public officers so modified as to prevent his displacing a faithful and competent man, either to gratify party malice, or to intimidate him in the free and independent exercise of the elective franchise; so, also, as will secure him against Executive tyranny, and all control over his official acts, except such as the law imposes; that his qualifications, fidelity and ability, may be his only hope of retaining office.

That control over the public press and Congress which has been so powerfully exercised by the appointment of newspaper editors and members of the Senate and House of Representatives to high and lucrative offices by the Executive, should as far as possible be obviated. The constitutional and legal right of each or both Houses of Congress to examine into the official conduct of every officer in the Government, should be clearly established, as it is the only efficient check the people have upon their public servants; whilst public expenditures must be reduced and more economy and simplicity in the administration of Government be observed, before we can ever be secure of these ines-

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timable blessings hitherto enjoyed under our constitution and excellent form of Government. I pray gentlemen, that the State may experience the full measure of your patriotism. Never was wisdom from above to direct your counsels, more to be implored than at this moment. Party spirit in its mildest form has ever been found an enemy to liberty and sound legislation: but when it is the offspring of ambition and avarice, directed by designing bad men in high places, it begets a blind devotion and infuriated zeal, which shuts the door against all reason, justice and patriotism. May God in his infinite wisdom and mercy avert such an evil from this country, and that justice and the laws may prevail, and that every man in this broad land may sit down again with confidence under the shadow of the constitution in the peaceable and quiet enjoyment of his rights and privileges. No power must be allowed to exist in this country superior to that of the people, or that does not acknowledge the supreme and inflexible authority of the law as the rule of action both for the President and every other functionary of the Government.