the terms and conditions therein prescribed. The general and almost
simultaneous suspension of specie payments by the banks in May last
rendered the performance of this duty imperative in respect to those
which had been selected under the act, and made it at the same time
impracticable to employ the requisite number of others upon the
prescribed conditions. The specific regulations established by Congress
for the deposit and safe-keeping of the public moneys having thus
unexpectedly become inoperative, I felt it to be my duty to afford you
an early opportunity for the exercise of your supervisory powers over
the subject.

I was also led to apprehend that the suspension of specie payments,
increasing the embarrassments before existing in the pecuniary affairs
of the country, would so far diminish the public revenue that the
accruing receipts into the Treasury would not, with the reserved five
millions, be sufficient to defray the unavoidable expenses of the
Government until the usual period for the meeting of Congress, whilst
the authority to call upon the States for a portion of the sums
deposited with them was too restricted to enable the Department to
realize a sufficient amount from that source. These apprehensions have
been justified by subsequent results, which render it certain that this
deficiency will occur if additional means be not provided by Congress.

The difficulties experienced by the mercantile interest in meeting
their engagements induced them to apply to me previously to the actual
suspension of specie payments for indulgence upon their bonds for
duties, and all the relief authorized by law was promptly and cheerfully
granted. The dependence of the Treasury upon the avails of these bonds
to enable it to make the deposits with the States required by law led me
in the outset to limit this indulgence to the 1st of September, but it