dollars, which is to defray the expenses incident to engaging the Shawnees, Delawares, Kickapoos, and Sac and Fox Indians, for service in Florida.

These expenses will comprise those necessarily incurred by the agent in assembling the Indians at some proper point, the cost of their subsistence while there, until they shall have been regularly enrolled and organized into companies and received into the service of the United States, and of such clothing as they may be in immediate want of. Payments for these objects will be made upon accounts certified by the agent whose duty it is to collect the Indians together. Of the sum mentioned, you will place two thousand five hundred dollars in the hands of Captain Bean, to defray the expenses of clothing the Shawnees, Delawares, and Kickapoos, and the remainder you will take charge of, and pay the expenses incident to the assembling of the Sacs and Foxes.

Very respectfully, your most obedient servant,

J. R. POINSETT. Lieut. BENJ. POOLE, St. Louis, Mo.

No. 12.

WAR DEPARTMENT, August 8, 1837. SIR: For the purpose of defraying the expenses incident to assembling the Choctaw Indians required for service in Florida, for subsisting them till they shall have have been enrolled, organized, and regularly mustered into the service of the United States, and of providing them with such atticles of clothing as they may be in immediate want of, the assistant quartermaster at Fort Gibson, has been instructed to place in your hands the sum of five hundred dollars. You will make the payments for the above objects, and for such other expenses as the agent may necessarily incur, on accounts certified by the agent whose duty it is to assemble

the Indians.

With respect to arms for such of these Indians as may not have them, these will be supplied from the arsenal at Baton Rouge, Louisiana; at which place, in transporting the Indians to New Orleans, you will stop, for the purpose of providing the Indians with them.

Very respectfully, your most obedient servant,
J. R. POINSETT.

Capt. BENJ. L. E. BONNEVILLE,

U. S. Army, Fort Gibson, Ark.

No. 13.

WAR DEPARTMENT, August 9, 1837. SIR Captains Gordon and Bean have been selected to assist you in the performance of the duty of engaging the Shawnees, Delawares, and Kickapoos, for service in Florida, imposed upon you by my letter of the 22d ultimo, and to take charge of those Indians and conduct them to Florida, when they shall have been mustered into the service of the United States.

Measures have been taken for placing in the hands of Captains Gordon and Bean, such an amount of funds as will, it is supposed, defray the expenses which it may be necessary to incur previous to the Indians being mustered. These expenses, it is presumed, will principally consist of those incident to the measures for collecting the Indians at one point, their subsistence, and the purchase of such articles of clothing as may be immediately required to render them comfortable, and to create a favorable impression on their part towards the United States. Accounts for these objects will be paid by Captains Gordon and Bean, on your certificate; and I have to request, that in your expenditures, you will be prudent, and as economical as circumstances will permit.

Should you not succeed in engaging the requisite number of either tribes named, you will use your discretion in making up the deficiency from one or both of the others; and should the number of each tribe which you may pre

vail upon to enter the service, fall short of that required, you will endeavor to provide for the deficiency from other tribes, being careful to employ those who would serve with the Shawnees, Delawares, and Kickapoos, without danger of difficulty from dissensions between them. Very respectfully, your most obedient servant, J. R. POINSETT. Major R. W. CUMMINS, Fort Leavenworth, Missouri.

No. 14.

WAR DEPARTMENT, August 9, 1837. SIR: Lieutenant Poole has been selected to assist you in the performance of the duty of engaging the Sacs and Foxes for service in Florida, imposed upon you by my letter of the 22d mltimo, and to take charge of those Indians and conduct them to Florida, when they shall have been mustered into the service of the United States,

These

Measures have been taken for placing in the hands of Lieutenant Poole such an amount of funds as will, it is supposed, defray the expenses which it may be necessary to incur previous to the Indians being mustered. expenses, it is presumed, will principally consist of those incident to the measures for collecting the Indians at one point, their subsistence, and the purchase of such articles of clothing as may be immediately required to render them comfortable, and to create a favorable impression on their part towards the United States. Accounts for these objects will be paid by Lieutenant Poole, on your certificate; and I have to request, that in your expenditures, you will be prudent, and as economical as circumstances will permit.

Should you not succeed in engaging the requisite number of Sacs and Foxes, you will endeavor to make up the deficiency from some other tribe, being careful, however, in engaging those who would harmonize in feeling with the Sacs and Foxes, and serve with them without danger of difficulty from dissensions between them. Very respectfully, your most obedient servant, J. R. POINSETT. Gen. J. M. STREET,

To the care of Gen. Wm. Clark, St. Louis, Missouri.

No. 15.

WAR DEPARTMENT, August 9, 1837. SIR Captain Bonneville has been selected to assist you in the performance of the duty of engaging the Choctaws for service in Florida, imposed upon you by my letter of the 22d ultimo, and to take charge of those Indians and conduct them to Florida when they shall have been mustered into the service of the United States.

Measures have been taken for placing in the hands of Captain Bonneville such an amount of funds as will, it is supposed, defray the expenses which it may be necessary to incur previous to the Indians being mustered. These expenses, it is presumed, will principally consist of those incident to the measures for collecting the Indians at one point, their subsistence, and the purchase of such articles of clothing as may be immediately required to render them comfortable, and to create a favorable impression on their part towards the United States. Accounts for these objects will be paid by Captain Bonneville, on your certificate; and I have to request, that in your expenditures, you will be prudent, and as economical as circumstances will permit.

Should you not succeed in engaging the requisite number of Choctaws, you will endeavor to make up the deficiency from some other tribe; being careful, however, in engaging those who would harmonize in feeling with the Choctaws, and serve with them without danger of difficulty from dissensions between them.

Very respectfully, your most obedient servant,
J. R. POINSETT.

Captain WILLIAM ARMSTRONG,

Choctaw Agency, Arkansas.

No. 16.

WAR DEPARTMENT, August 9, 1837. SIR: In the instructions to Major Cummins, whom you are to assist in engaging the Sacs and Foxes required for service in Florida, he is told that those Indians who may not have the necessary arms and accoutrements will be provided with them by the United States; and I have now to inform you that these will be supplied at St. Louis, on your arrival there with the Indians on your way to Florida. Very respectfully, your most obedient servant, J. R. POINSETT.

Lieut. BENJ. L. E. POOLE,

St. Louis, Missouri.

No. 17.

WAR DEPARTMENT, August 9, 1837. GENTLEMEN: In the instructions to Major Cummins, whom you are to assist in engaging the Shawnces, Delawares, and Kickapoos, required for service in Florida, he is told that those Indians who may not have the necessary arms and accoutrements will be provided with them by the United States; and I have now to inform you that these will be supplied at St. Louis, on your arrival there with the Indians on your way to Florida.

Very respectfully, your most obedient servant,
J. R. POINSETT.

Captains WILLIAM GORDON and

J. L. BEAN, Fort Leavenworth, Mo.

UNPAID DUTIES, &c.

Letter from the Secretary of the Treasury, (in obedience to a resolution of the 20th of September,) with statements in relation to the amount of unpaid duties, &c. September 21, 1837. Referred to the Committee of Ways and Means.

TREASURY DEPARTMENT,
September 21, 1837.

SIR: The following report is submitted in compliance with a resolution passed on the 20th instant, in these words:

"Resolved, That the Secretary of the Treasury be directed to lay before this House, statements of the amount of duties unpaid which accrued before the end of the first half of the present year, and when payable; of the amount then due from the Bank of the United States, and when payable; of the data on which the accruing revenues for the last half of the present year were founded.

In answer to the first inquiry, the annexed statement is exhibited, as being the most accurate which can be furnished from materials now in possession of the Department, concerning the amount of duties unpaid which accrued before the end of the first half of the present year, and when payable." (A)

The next statement (B) shows "the amount then due from the Bank of the United States, and when payable.'

The last statement (C) contains the information desired in the last inquiry, as to the data on which the accruing revenues for the last half of the present year were founded." This statement is prepared or. the supposition that, by the expression "accruing revenues," is here meant the revenues estimated in the report at the commencement of the session, as likely to be actually received "for the last half of the present year." Because the Department has not made nor submitted any estimate of the revenues, which may accrue in the last half of the year, and not be then payable. Much of those then accruing will not be payable, or received till another year, and the amount is not, therefore, usually exhibited in reports on the finances of an earlier date, and did not seem material to be exhibit

[25th CoNG. 1st Sess.

It is supposed that the statement required under this head is wished to embrace only the bonds for revenue accruing in the first half of the year A. D. 1837, which were unpaid at the end of that half year; otherwise, it would include all the bonds in previous years that then remained unpaid; and which, from insolvencies, suits, and other causes, are large in amount; and the times when payable, very difficult to be either ascertained, estimated, or described, with accuracy.

The following exhibit, compiled from the returns in the office of the Solicitor of the Treasury, furnishes the fullest and most accurate data on this subject which are now in this Department.

Such of those bonds as were not put in suit, have generally been postponed till the 1st of October. Statement of the amount of custom-house bonds delivered to district attorneys for suit, from 1st January, 1837, to 30th June, 1837, as returned to the Solicitor's office.

IN DISTRICT NORTH OF NEW YORK.

From 1st January to 10th
May, 1837

From 10th May to 30th
June

$29,130 77

206,412 23

Due by the United States Bank on account of the stock owned by the United States, and the navy pension fund, $7,946,356 11; payable in four equal annual instalments, of $1,986,589 04, in September, 1837, 1838, 1839, and 1840, with interest from March 3d, 1836.

Of the above amount, $741,561 28 is on account of the navy pension fund, and has partly been paid, and the residue will be out of the first instalment, when received. It is a portion of a trust fund, and not applicable to general purposes.

C.

The revenues that will actually be received by the Treasury during the last half year of 1837, were in August last estimated on the following data:

1st. Those from lands were computed at about the supposed average for July and

These items and amounts were deemed highly probable, and were independent of any course the Department or Congress might adopt as to the postponement of bonds for duties, or of the cash duties.

But the Department having postponed, and authorized to be postponed till October 1st, all the bonds for duties which fell due before that date, under the conditions and terms detailed in the recent report, it was estimated that in July, August, and September, the actual receipts for duties beyond, or after deducting the debentures and customhouse expenses payable in or chargeable to that quarter of the year, would not much exceed

The debentures alone, it was ascertained and estimated, would amount to near a million of dollars; and so large a part of the receipts was in drafts not paid by the banks, and which could not be paid out again after being redeemed, that the Department was obliged to refund money from former collections to meet the demands on account of debentures and other expenses.

It was next supposed that if Congress postponed till the 1st of January, 1838, all the bonds due on the 1st October, and such as might fall due during the rest of the year, the actual receipts in the last quarter, from duties, would not exceed the debentures and expenses over

This would make the whole receipts, in the last half of the year, only

200,000

1,500,000 $3,200,000

During the fourth quarter it was considered that the expenses would be similar in amount and the debentures either more or less, as the bonds for duties should be paid in or postponed to a greater or less extent.

SAFE KEEPING OF PUBLIC MONEYS.

1,000,000

$4,500,000

But if Congress postponed the bonds due in October, as well as all others falling due within the year, to a period of six months from the time they originally fell due, it was supposed that, in the last quarter, the actual collections from them would be near the additional sum of $2,500,000. None would then become finally due till the middle of November, and thence to the end of the year only such as had been postponed during the last half of May and the month of June. Of these it was expected that a considerable portion would be put in suit and not paid within 1837. This would make, on that hypothesis, an aggregate of receipts for the last half of the year of about $7,000,000.

But if Congress should make no further postponement of any bonds beyond October 1st, it was computed that the additional sum collected in the last quarter, instead of $2,500,000, would be about $5,000,000. It was supposed that, in such an event, a still larger proportion of bonds falling due during the quarter would be put in suit and not collected within the year. This would constitute an aggregate of actual receipts for the last half of the year equal to about $9,500,000.

The bonds put in suit in the third quarter are ascertain

The first method adopted for the safe-keeping of the public money after the organization of the Government under the present constitution, was devised and directed by the Secretary of the Treasury. He appears to have felt empowered to do this, as being the officer invested with general superintendence over the collection and disbursement of the revenue. No law pointed out any specific method to be pursued, but it was merely provided by the act of September 2, 1789, that the Threasurer should "keep" the public money and "disburse the same.

The plan selected was unlike that in most other countries, so far as it required that very little of the money should be kept by the Treasurer himself, at the seat of Government, and in his personal custody. It would, however, seem, from a report to the House of Representatives, 228 May, 1794, that prior to that date small sums had been so kept by him occasionally. Departing from the general practice abroad in some other respects, the Secretary ordered most of the money, after it was collected, to be paid over to several bank agents, and to be then kept as well as disbursed through them. Some of these were located near and some at a distance from the Treasurer; but they, as well as the collectors, till the money was paid over, were always regarded as representing him for this purpose, he keeing the money by them. They reported regularly to him, and acted under instructions from him and the Secretary of the Treasury.

Those fiscal agents at first consisted of the collectors of customs, the commissioner of the revenue, some bankers abroad, and three or four banking institutions at home. No receivers of money from the sales of public lands were then in existence. The method was to have the collectors to keep the money safely till it could be lodged in some bank situated near, which the Department should select, or till it could be transmitted to the Treasurer by some safe conveyance, or be paid out on drafts and bills drawn on them by the Department, or under its orders.

The number of banks thus selected and used before the first charter of the United States Bank is supposed to have

been only four, viz: the Bank of North America at Philadelphia, the Bank of New York, at New York, the Massachusetts Bank at Boston, and the Bank of Maryland at Baltimore.

No losses by defalcation or otherwise are known to have occurred under this method.

[25th CoNG. 1st SESS.

December, 1834, by this Department to Congress, and table B B.)

From October, 1833, to July, 1836, a method was again adopted of using State banks almost exclusively, under the general provisions in the act of Congress of September 2, 1789.

During that period no losses are known to have occurred by banks, except on a deposite in the Bank of Alexandria, in this District, of $27,518. Of that sum, about $14,257 have since been paid, and most of the residue is supposed to be secure.

The residue of the money so deposited appears to have been in the immediate custody of eleven State banks. (See report by the Secretary of the Treasury to House of Representatives, January 10, 1811, table C.)

Under the above method some losses occurred of the public money in the hands of collecting officers, before paid over on drafts or deposited in bank, or transmitted to the Treasurer.

But how much of this and similar defalcations occurred, and is properly chargeable on the safe keeping, and how much on the collection of the public money, cannot be discriminated on the books of the Department, and must be a matter of opinion.

It is not known that any loss happened during that period by the failure of any bank depository.

After the expiration of the charter of the first United States Bank, in 1811, more State institutions were employed, and the former system was thus modified, until the charter of a second United States Bank in 1816.

The losses under this system, from 1811 to 1817, were very inconsiderable, except by delays and depreciations from the suspension of specie payments. No direct losses from banks during that period appear on the records of the Treasury. The third method, adopted in 1816, and carried into effect in 1817, was the first specific one pointed out by law. The act of Congress incorporating the bank provided that the public money be placed in the Bank of the United States and its branches in places where any should be located, unless the Secretary of the Treasury shall at any time otherwise order and direct."

It was left to be implied that, in other places, State banks might be employed, as had previously been done, when found convenient. But no express legislative direction to that effect was given, unless the provision be so considered which permitted the United States Bank, under the approbation of the Secretary of the Treasury, to select and use certain State banks instead of establishing branches. Accordingly, several of the old State banks were continued as public depositories, and several new ones were from time to time added, till 1833, when the deposites, under the power reserved to the Secretary of the Treasury in the charter of the United States Bank, were gradually removed from that institution and its branches to several State banks.

In the mean time, from 1816 to 1833, under the method then in use, some large losses occurred. They were chiefly by means of State banks, though some happened with collectors and receivers, while the money was in their custody. But, as before remarked, these last cannot be separately ascertained and discriminated from the losses in collecting, rather than keeping the revenue. The defalcations by the banks during that period, and which have not since been collected, amount to about $1,100,000, without computing interest, and without reckoning any incidental injuries by the suspension of specie payments, and by the use of a depreciated currency. (See supplemental report, VOL. XIV.A 9

This last mode, as already reported to Congress at its present session, ceased, by operation of law, during the last spring, except in relation to five or six deposite banks, which have continued to redeem their notes in specie.

The direct losses sustained under it appear now to be large. But, in the end, as recently communicated to Congress, they are not considered as likely to amount to any thing, though the disappointments, delays, and injuries under it must, it is manifest, in several cases, be great. The indirect losses to the public creditors and contractors have been considerable, and are difficult to be computed.

Since last May the method adopted has been to use those six banks to the amount authorized under the act of June, 1836, and to resort, in conformity to the eighth section of that act, to the laws before in force, as a guide for keeping the residue.

As stated heretofore, those laws required the Treasurer merely to keep and disburse the public money; and the course has been since pursued of employing the collecting officers, subject to instructions from the Treasury and this Department, to keep the funds as safely as possible which they collect, till placed in one of those six banks, or drawn for expenditure, or till they can be transmitted to the Treasurer, or till Congress make new regulations on the subject. These officers either secure them in iron chests, safes, and vaults of their own, or place them in special deposite in the nearest bank, when the sums are very large, and their present means for the safe-keeping of them are inadequate.

No losses under this method have yet been reported or are supposed to have happened.

It must be obvious, from the above remarks, and the nature of the whole subject, that the statement of losses sustained under the different methods in use at different periods, has been confined to what is found on the Treasury books and returns, and hence to only the direct losses of the money on hand after it is placed in deposite.

The direct losses by receivers and others during the collection of the money, and during its continuance in their possession before paid over or deposited, constitute a distinct inquiry, as well as the direct losses by merchants on duty bonds, by former credits given to others on the sale of public lands, and by defaults of disbursing agents after the money has been once collected, deposited, and again paid out of the Treasury, and placed in their hands for the public claimants entitled to it. None of these seem included in the purview of the present resolution, and it would, if desired, require much labor and time to ascertain their respective amounts with any great degree of accuracy.

The indirect losses are likewise almost entirely conjectural. They are chiefly confined to bank depositories, and not being exhibited on the Treasury books, are not supposed to be embraced in the resolution. It must, however, be manifest that they have at times been large, in consequence of the suspension of specie payments by some of the banks, and of other circumstances adverted to in the sup

TREASURY DEPARTMENT, September 25, 1837. SIR: This report is submitted in compliance with the following resolutions, passed on the 14th instant :

"Resolved, That the Secretary of the Treasury communicate to this House all the orders issued and correspondence with the several deposite banks, in reference to the transfers and payments of the several instalments due to the State governments under the deposite act of 23d of June, 1836.

"Resolved, That he communicate to this House the monthly statements of the condition of the deposite banks, from the 1st day of January last to the present time.

66

Resolved, That he communicate a statement of each draft, and in whose favor drawn, upon which specie was demanded, and protested for non-payment by any deposite bank; also, each State government which has made a demand of specie and not paid, and the time when."

In relation to the first inquiry, copies of all the orders issued and correspondence had with the several deposite banks, in reference to the transfers and payments of the several instalments to the State governments under the deposite act, are annexed, (A to N inclusive, with their respective numbers, and O 1 to 4.) This includes all the orders of every kind, but generally only the correspondence with the several deposite banks on which these orders were given. That is supposed to be what was desired, and not the correspondence with the State authori-| ties and others. Great care has been used to communicate the whole with the banks, though in selecting so many hundreds of orders and letters some may by accident have been omitted.

In reply to the second inquiry, for the "monthly statements. of the condition of the deposite banks from the 1st of January last to the present time," I would observe that the returns are made semi-monthly, and during the period mentioned, equal near fifteen hundred in number. They are, likewise, in many cases long, and so much time and labor would be required for copying them, or even half of the whole number, as to postpone an answer to the call for several weeks. But, since last November, statements have been compiled in this Department periodically, about every three months, from the semi-monthly returns, copies of which may be useful as substitutes for those desired, and are herewith presented, (P Nos. 1 to 5.) If these do not, on examination, furnish all the information requested, the Department will proceed to have the semi-monthly statements copied as soon as practicable, consistent with the pressure of other business, or will send up the originals immediately if preferred.

In compliance with the third and last request in the resolution, a statement is annexed of all drafts, and in whose favor drawn, on deposite banks, which have been reported to this Department as protested by the holders for nonpayment in specie, (O Nos. 1, 5, 6, and 7.)

No drafts are known to have been "protested for nonpayment by any deposite bank," if it be meant by this expression that such bank procured the protest to be made. Nor is it known that any State government has itself made a demand of specie which has not been paid, though this has been done by some of its assignees. As mentioned in my report to Congress on the finances, several transfers in favor of States had not then been receipted to the Treasury, and payment acknowledged. On the contrary, the Department had received notice that some of the transfers chartered by Pennsylvania, and that specie for them had were in possession of the Bank of the United States been demanded by that bank of the depositories on which they were drawn, and not being so paid, a protest had been made, and notice sent to this Department. A schedule of these may be seen in a note to O No. 2. One on the Merchant's Bank is represented by its president to be held under protest by the United States Bank. Notice has likewise been given to the Department of another draft, in favor of the State of Virginia, on one of its own institutions, viz: the Farmers' Bank, for about $117,000, which has been demanded in specie by another of its institutions, viz the Exchange Bank, and not being so paid, it is stated to have been transferred to the United States Bank of Pennsylvania, (K 8,) but no protest on it has yet been received. Respectfully,

Hon. JAMES K. POLK,

LEVI WOODBURY, Secretary of the Treasury.

Speaker of the House of Representatives

List of Documents.

A 1 and 2. Notices sent by the Secretary of the Treasury to the several deposite banks holding puplic money, with regard to the amounts they would probably be respectively required to deposite with the several States B. Notices to banks advising them of the actual issue of State transfer drafts upon them for their respective proportions of deposites to be made with the States, accompanied with the necessary forms.

C 1, 2, 3. Letters received from and addressed to banks in the State of Maine respecting deposites with States. D 1, 2. Letters addressed to banks in Massachusetts respecting deposites with States.

E 1, 2, 3. Letters addressed to and received from banks in Connecticut respecting deposites with States.

F 1, 2, 3. Letters received from and addressed to banks in Rhode Island respecting deposites with States.

G 1, 2, 3, 4, 5, 6, 7. Letters received from and addressed to the Mechanics' Bank, New York, respecting deposites with States.

G 8, 9. Letters addressed to and received from the Bank of America on the same subject.

G 10, 11, Letters received from and addressed to the Brooklyn Bank on the same subject.

G 12, 13, 14, 15, 16. Letters from and to the Merchants' Bank, New York, on the same subject.

G 17, 18, 19, 20. Letters from and to the National Bank, New York, on the same subject.

G 21. Letter from the Manhattan Company, in reply to the notice of issue of transfer draft in favor of the State of Tennessee, being all the special correspondence with that bank on the subject of deposites with States.

G 22, 23, 24, 25, 26, 27, 28, 29. Letters to and from the Commercial Bank of Buffalo respecting deposites with States.

H 1, 2, 3, 4, 5. Letters from and to banks in the State of New Jersey respecting deposites with States.

I. Letter from Bank in the State of Delaware relative to deposites with States.

K 1, 2, 3, 4, 5, 6, 7, 8, 9, 10. Letters to and from banke in Virginia relative to deposites with States.