Nothing shall be wanting on the part of the Executive, within the means afforded him, for the promotion of a policy dictated by a sense of justice, and approved by experience. He is satisfied that it will, if carried out, do more to give security to our frontiers than millions expended in fitting expeditions which have never resulted in anything beneficial to the country. Instead of the large sums heretofore annually expended for the purpose of frontier protection, it is believed that the expense of the present year connected with the Indian operations of the Government will exceed but little, if any, the sum of ten thousand dollars.
A policy that was once condemned, and opposed with the greatest vehemence and its projector and advocate denounced, seems now, from the results which have already been attained, to receive that consideration satisfactory to every patriot. It has for many months past arrested the tomahawk, rendered useless the scalping-knife, and afforded the most remote and exposed settlers on our frontier the opportunity of cultivating their fields in peace and reposing in security.
At the close of the last administration the Government came to my hands without a currency, as well as without credit, or the prospect of obtaining the means for conducting its affairs. It was found to be indispensably necessary for the Congress to declare our inability to redeem, at that time, the paper which had been lavishly issued, estimated at at least twelve millions. Appalling and disheartening as was our situation, a plan for a currency was recommended to the representatives of the people for their adoption. The recommendation met the concurrence of Congress only in part; for some of the guarantees essential, as the Executive conceived, to restore confidence, and ensure the redemption of the new currency, were withheld. And notwithstanding the wants and difficulties of the Government at that period, the direct taxes were actually greatly reduced, and their collection postponed nearly twelve months beyond the time they had usually been paid in. Thus was the Government left to rely solely upon the duties upon imports, which from the unsettled state of the country arising from rumors of invasion, were very limited. Under these embarrassing circumstances the experiment of creating and sustaining the new currency was made. The consequence was that the value of Exchequer bills fell as low as twenty-five cents on the dollar. And, in addition to the many other impediments to be encountered, it seemed to be the private interest of many to depreciate their value; and, by promoting their individual advantage, to deprive the Government of this slender means of existence.
By a judicious restraint, however, upon the issues, reducing them much within the amount authorized by law, a currency has been established, notwithstanding the hindrances mentioned, and the delinquency of officers entrusted with the collection of the revenue. The wise and economical administration of the finances of the country by the head of the Treasury, has raised its value to a par with gold and silver; and by the continuance of the same course it can not be doubted that the same value can be supported. It is certainly a subject for gratulation that the practicability of re-establishing the soundness of our currency, and maintaining our credit, has at length been demonstrated.
It is necessary and proper that the country should be supplied with a circulating medium. This may be effected by issuing no more Exchequers at any one time, than the Government can redeem in gold and silver. It is estimated that
