stribution of the large surplus
then in the Treasury and the equally sudden and unprecedentedly severe
revulsion in the commerce and business of the country, pointing with
unerring certainty to a great and protracted reduction of the revenue,
strengthened the propriety of the earliest practicable reduction of the
public expenditures.

But to change a system operating upon so large a surface and applicable
to such numerous and diversified interests and objects was more than the
work of a day. The attention of every department of the Government was
immediately and in good faith directed to that end, and has been so
continued to the present moment. The estimates and appropriations for
the year 1838 (the first over which I had any control) were somewhat
diminished. The expenditures of 1839 were reduced $6,000,000. Those of
1840, exclusive of disbursements for public debt and trust claims, will
probably not exceed twenty-two and a half millions, being between two
and three millions less than those of the preceding year and nine or
ten millions less than those of 1837. Nor has it been found necessary
in order to produce this result to resort to the power conferred by
Congress of postponing certain classes of the public works, except by
deferring expenditures for a short period upon a limited portion of
them, and which postponement terminated some time since--at the moment
the Treasury Department by further receipts from the indebted banks
became fully assured of its ability to meet them without prejudice to
the public service in other respects. Causes are in operation which
will, it is believed, justify a still further reduction, without injury
to any important national interest. The expenses of sustaining the
troops employed in Florida have been gradually and greatly reduced
through the persevering efforts of the War Department, and a reasonable
hope may be entertained that the necessity for military operations in
that quarter will soon cease. The removal of the Indians from within
our settled borders is nearly completed. The pension list, one of the
heaviest charges upon the Treasury, is rapidly diminishing by death.
The most costly of our public buildings are either finished or nearly
so, and we may, I think, safely promise ourselves a continued exemption
from border difficulties.

The available balance in the Treasury on the 1st of January next is
estimated at $1,500,000. This sum, with the expected receipts from all
so