sudden contraction of loans and a reduction of their circulation by the banks, the community will not be left destitute of a circulating medium, nor the streams of business nearly dried up. One mode of effecting this, to some extent at least, is to prohibit the issue and circulation of bank bills of a small denomination. When these are withdrawn, the channels of circulation immediately become filled with silver and gold; and the circulation once established, continues and becomes permanent from the very nature of the case and the necessities of business. So far as my knowledge extends, this was the operation of the restraining law of 1835, and was only interrupted by the suspension of specie payments by the banks. Prior to that event there was no want of silver. The small bills disappeared and their place was supplied with specie, by a process so gentle that the change was scarcely perceptible while going on, and affected no interests in the community, not even those of the banks themselves, but for good. That such would be the effect again, under similar circumstances, I have no doubt. With these views, therefore, I cannot hesitate to recommend a renewed attempt, now or hereafter, as may be deemed best, to effect the design of the law alluded to. No laws, however, can be effectually executed unless sustained by public opinion, especially one of this character. Whether therefore the present, is, or is not, the best time to attempt

its revival-whether it should, at first, embrace so many bills of a small denomination-or whether all its provisions are judiciously adapted to the end proposed, are questions which your own experience, and the knowledge you bring with you from all parts of the State, of the views and wishes of the people, will enable you to decide satisfactorily.

In general I have not deemed it expedient in my communications to the Legislature, to discuss political questions, however important they might be, when they had no direct connexion with the business legitimately coming before you-and it is without an intended departure from this rule, that I allude, by way of fortifying the views just expressed, to the prospect that an important change is about to be effected in the financial operations of the General Government, and consequently, though indirectly, in the currency of the country. "The Independent Treasury system," judging from the elections and other strong indications, after an opposition, able, long continued and fierce, seems, happily, to have received the approbation of the people, and is probably about to be adopted as the established policy of the country. This contemplates, by a gradual change from the present system, a payment of all dues to the National Government in silver and gold. The disbursements of the government being also to be made in the same currency, will infuse a larger

portion of the precious metals into the circulating medium, and thus afford essential aid to those States disposed to restrain the issue and circulation of small bills, in carrying into effect laws enacted for that purpose. If, in addition to this, we consider, that our own banks will undoubtedly adhere to their honorable and commendable policy of maintaining specie payments, there can be no reason to doubt, that specie may be easily and abundantly obtained by the people to supply the place of small bills.

The long pending question in relation to our northeastern boundary, is still open and unadjusted, though we have reason, perhaps, for believing, that it has made some advances during the past year. We have had a renewed expression of opinion on the part of the General Government that the territory in dispute is a part of the State of Maine-an indication of a determination to discharge, in good faith, the duty of that government to this State, of maintaining the integrity of its territory-and a national sanction of the military demonstrations made by this State in February and March last. It is also well understood now by all parties, that however patient and forbearing Maine will be while honest and earnest attempts are being made to run the line and definitely settle the question, she will not submit longer to be deprived of her territory by such a system of vexatious and unjustifiable procras

tination as has heretofore been practised; and that the question must be settled speedily, in some way or other, if hostilities would be avoided. This is gaining something. When parties are fully aware of the precise position they occupy, the next step taken by them will be taken understandingly, whatever else may be said of it. Again, the occurrences of last winter served to awaken the attention of the country to the momentous importance of the question, and to induce such an examination of it as to result in a strong and universal conviction, that the pretence of claim set up by Great Britain to the disputed territory, is palpably unfounded and unjust, and can be persevered in, only, through an utter disregard of the plain and unambiguous terms of the treaty of 1783.

Soon after the termination of your session in March last, a proposition was made by the British Government to the Government at Washington, for establishing a Commission for the purpose of exploration and survey, but it was connected with such limitations and conditions, as, it is understood, caused an immediate rejection of it by the President. After which, and believed to be as early as July last, a counter project was submitted to the British Government, to which, as we learn by the late message of the President, no reply has yet been received.

Pending this negotiation, it seems, the British Government has deemed it expedient to make an exploration of the disputed territory by Commissioners sent out for that purpose-the alleged object being, to obtain topographical information, &c., as a means of promoting an early and just determination of the question in dispute. These Commissioners have completed the exploration, and returned to England to report to their government. What that report is to be, or what is to be the effect of it, remains to be seen. The courtesy due from one government to another, requires us, perhaps, to believe, that the real and avowed design are the same, and that this survey has been undertaken really for the acquisition of information, and not for mere purposes of delay. At all events, a short time will determine. As the Commissioners may be expected to have reached England about the first of January, there will be ample time before the termination of your present session, supposing it to be of the usual length, for the British Government to avail itself of its additional information, and to communicate with the government of the United States, in reply to the counter proposition submitted many months ago. If such communication should not be made within the time anticipated, I think you may fairly regard the British Government as having returned to its old practice of procrastination, and will be justified in adopting more vigorous and