The President animadverted in his message upon the loss of the Fortification Bill, due to the defeat of the three million clause.

Mr.Webster defended himself most conclusively and effectively, and before the session closed the difficulties with France were practically settled.

He also gave great attention to the ever-pressing financial question, trying to mitigate the evils which the rapid accumulation of the public funds was threatening to produce.

He felt that he was powerless, that nothing indeed could be done to avert the approaching disaster; but he struggled to modify its effects and delay its progress.
Complications increased rapidly during the summer.

The famous "Specie Circular," issued by the Secretary of the Treasury without authority of law, weakened all banks which did not hold the government deposits, forced them to contract their loans, and completed the derangement of domestic exchange.