Newspaper Page Text
The Mexicans having thus shown themselvesM
to be A\holl\ incapable ot appreciating our
forbearance and liberality, it was deemed proper
to change the manner of conducting the war,
b} making them leel its pressure according to
the usages obsen ed under similar circumstan
ces by all other civilized nations.
Accordingly, as early as the twenty-second
nf September, 184:5, instructions wore given
by the Secretary of War to Maj. Gen. Taylor
to “draw supplies” for our army “from 'the
enemy, without paying for them, and to re
quire contributions for its support,” if in that
way he was satisfied ho could “get abundant
supplies for his forces.” In directing the ex
ecution of these instructions, much was ne
cessarily left to the discretion of the com
manding officer, who was best acquainted with
the circumstances with which he was surround
ed, the wants of the army, and the practicability
of enforcing the measure.
Gen. Taylor, on the twenty-sixth of Octo
ber, 1846, replied, from Monterey, that “it
would have been impossible hitherto, and is
bo now. to sustain the army to any extent by
forced contributions of money or supplies.”—
For the reasons assigned by him, he did not
adopt the policy of his instructions, but de
clared his readiness to do so, “should the ar
my, in its future operations, reach a portion of
the country which may be made to supply the
troops with advantage.” He continued to
pay for the articles of supply which were !
drawn from the enemy’s country.
Similar instructions were issued to Major
General Scott on the third of April, 1847, who
replied from Jalapa, on the twentieth of May,
1847, that, if it be expected that “the army is
to support itself by forced contributions le
vied upon the country, we may ruin and ex
asperate the inhabitants, and starve ourselves.”
The same discretion was .given to him that had
been to Gen. Taylor in this respect. General |
Scott for the reasons assigned by him, also con
tinued to pay for the articles of supply for the
army which were drawn from the enemv.
After the army had reached the heart'of the
most wealthy portion of Mexico, it was sup
posed that the obstacles which had before that
time prevented it would not be such as to ren
der impracticable the levy of forced contribu
tions for its support; and on the first of Sep
tember, and again on the sixth of October,
1847, the order was repeated in despatches ad
dressed by the Secretary of War to General
Scott, and his attention was again called to
the importance of making the enemy bear the
burdens of the war by requiring them to fur
nish. the means of supporting our army; and
he was directed to adopt this policy, unless, by
doing so, there was danger of depriving the
army of the necessary supplies. Copies of
these despatches were forwarded to General
Taylor for his government.
On the thirty-first of March last, I caused
an order to be issued to our military and na
val commanders to levy and collect a military
contribution upon all vessels and merchandise
which might enter any of the ports of Mexi
co in our military occupation, and to apply
such contributions towards defraying the ex’-
j enses of the war. By virtue of the right of
conquest and the laws of Avar, the conqueror,
consulting his otvn safety or convenience, may
either exclude foreign commerce altogether
from all such ports, or permit it upon such
terms and con lition* as he may prescribe.—
Before the principal ports of Mexico were
blockaded by our navy, the revenue derived
from impost duties, under the laAvs of Mex
ico, Avas paid into the Mexican treasury- After
those ports had fallen, into our military pos
session, the blockade was raised, and com
merce Avith them permitted upon prescribed
terms and conditions. They were open to the
trade of all nations upon the payment of du
ties more moderate in their amount than those
Avhich had been previously levied by Mexico;
-and the revenue, Avhich was formerly paid into
the Mexican treasury, was directed to be col
lected by our military and naval officers, and
applied to the use of our army and navy. —
Care Avas taken that the officers, soldiers, and
sailors of our army and navy should be ex
empted from the operations of the order; and
ns the merchandise imported upon Avhich the
order operated must be consumed by Mexican
citizens, the contributions exacted Avere, in
effect, the seizure of the public revenues of
Mexico, and the application of them to our j
own use. In directing this measure, the ob
ject Avas to compel the enemy to contribute,
as far as practicable, tOAvards the expenses of
the Avar.
For the amount of contributions which have
been levied in this form, I refer you to the ac
companying reports of the Secretary of War
and of the Secretary of the NaA r y, by Avhich
it appears that a sum exceeding half a mil
lion of dollars has been collected.
This amount Avould undoubtedly have been
much larger but for the difficulty of keeping
open communications betAvcen the coast and j
the interior, so as to enable the OAvners of the
merchandize imported, to transport and vend
it to the Inhabitants of the country. It is con
fidently expected that this difficulty w ill, to a |
great extent, be soon remoA r ed by our increas- i
ed farces Avhich have been sent to the field.
Measures have recently been adopted by
which the internal as well as the external rev
enues of Mexico, in all places in our military
occupation, Avill be seized and appropriated to
the use of our army and navy.
The policy of levying upon the enemy con
tributions in every form, consistently Avith the
laAA r s of nations, which it may be practicable
for our military commanders to adopt, should,
in my judgment, be rigidly enforced, and
orders to this effect have accordingly been
given. By such a policy, at the same time
that our own treasury Avill be relieved from a
heavy drain, the Mexican people Avill be made
to feel the burdens of the war, and consulting
their own interests, may he induced the more
readily to require their rulers to accede to a
just peace.
After the adjournment of the last session of
Congress, events transpired in the prosecution
of the Avar, which, in my judgment, required a
greater number of troops in the field than had
l»een anticipated. The strength of the army
was accordingly increased by “accepting” the
sexwiccs of all tlxe volunteer forces authorized
by the act of the 13th of May, 1846, without
putting a eonstruction on that act, the cor
i cctness of which Avas seriously questioned.
The volunteer forces now in the field, Avith
those which had been “accepted,” to “serA'e
for twelve months,” and Avere discharged at
the end of their term of service, exhausts the
fifty thousand men authorized by that act.
Had it been clear that a proper construction
of the act Avarranted it, the services of an addi
tional number Avould have been called for and
accepted ; but doubts existing upon this point,
the poAver Avas not exercised.
It is deemed important that Congress should,
at an early period of their session, confer the
authority to raise an additional regular force
to serve during tho war w ith Mexico, and to be
discharged upon the conclusion and ratifica
tion of a treaty of peace. I invite the atten
tion of Congress to the view's presented by the
Secretary of War in his report upon this sub
ject.
I recommend, also, that authority be given
by laAv to call for and accept the services of
an additional number of volunteers, to be ex
ercised at such time and to such extent as the
emergencies of the service may require.
In prosecuting the war with Mexico, whilst
the utmost care has been taken to avoid every
just cause of complaint on the part of neutral
nations, and none has been giv'en, liberal pri
vileges have been granted to their commerce
in the ports of the enemy in our military oc
cupation.
I Ihe difficulty with the British government,
which at one rime threatened to inturrupt the
friendly relations between the two countries,
will, I trust, be speedily adjusted. I have re
ceived information that an envoy extraordina
ry and minister plenipotentiary to the United
States will shortly be appointed bv her Im
perial Majesty; and it is hoped that he will
1 come instructed and prepared to adjust all
remaining difference between tho two govern
| meats in a manner acceptable and honorable
jto botb. In the meantime, I have every rea
son to believ’e that nothing will occur to inter
rupt our amicable relations with Brazil.
It has been my const ant effort to maintain and
! cultivate the most intimate relations offreind
i ship with all the independent Powers of South
America; and this policy has been attended
with the happiest result. It is true, that the
] settlement and payment of many just claims of
; American citizens against these nations have
; been long delayed. The peculiar position in
which they haA r e been placed, and the desire
©n the part of my predecessors, as well as my
i self, to grant them the utmost indn I gence,
have hirherto prevented these claims from be
ing urged in a manner demanded by strict
justice. The time has arrived when they
ought to be finally adjusted and
and efforts are now making for that purpose.
It is proper to inform you that the govern
ment of Peru has in good faith paid the first
j two instalments of the indemnity of thirty
thousand dollars each, and the greater portion
of the interests due thereon, in execution of
the convention between that government and
the United States, the ratifications of which
were exchanged at lima on the thirty-first of
October, 1846. The Attorney General of the
United States, early in August last, completed
the adjudication of the claims under this con
vention, and made his report thereon, in pur
suance of the act of the eighth of August,
1843. The sums to wdiich the claimants are
respectively entitled will be paid at the ti#-*sury.
I invdte the early attention of Congress to
the present condition of our citizens in China.
Under our treaty with that power, American
citizens arc withdrawn from the jurisdiction,
whether civil or ciminal,of the Chinese gov rern
meut and placed under that of our public func
tionaries in that country. By these alone can
our citizens be tried and punished for the
commission of any crime ; by these alone caxx
questions be decided between them, involving
the rights of person and property; and by
these alone can contracts be enforced, into
which they may ha\ r e entered with the citizens
or subjects of foreign powers. The merchant
vessels of the Uxxitcd States lying in the waters
of the five ports of China open to foreign com
merce are under the exclusive jurisdiction of
officers of their own government. Until Con
gress shall establish e unpetenttribunals to try
and punish crimes, and to exercise jurisdic
tion in civil cases in China, American citizens
there are subject to no law Avhatever. Crimes
may be committed Avith impunity, and debts
may be contracted without any means to en
force their payment. Inconveniences have al
ready resulted from the omission of Congress
to legislate upon the subject, and still greater
are apprehended. The British authorities in
China have already complained that this gov
ernment has not provided for the punish
ment of crimes, or the enforcement of contracts
against American citizens in that country,
Avhilst their government has established tri
bunals by Avhich an American citizen can re
coAor debts due from British subjects.
Accustomed as the Chinese are to sumraxrv
justice, they could jxot comprehend why
criminals who are citizens of the United States
should escape Avith impunity, in violation of
treaty oblig xtious, Avhilst the punishments of
a Chinese, aa'lxo had committed any crime
against an American citizen, would be rigor
ously exacted. Indeed, the conscquanccs
might ba fatal to American citizens in China,
should a flagrant crime he committed by any
one of them upoxr a Chinese, and should trial
and punishment not follow according to
the requisitions of the treaty. This might
disturb, if not distroy, our friendly relations
with that empire, and cause an interruption of
our vauluable commerce.
Our treaties Avith the Sublime Porte, Tri
poli, Tunis, Morocco, and Muscat, also require
the legislation of Corgress to carry them into
4 execution, though the necessity for immediate
action may not be so urgent as in regard to
China.
The Secretary of State has submitted an es
timate to defray the expense of opening dip
lomatic relations Avith the Papal States." The
interesting political events now in progress in
these States, as Avell as a just regard to our
commercial interests, in my opinion, rendered
such a measure highly expedient.
Estimates haA r e also been submitted for the
outfits and salaries of charg xs d’affaires to the
republic of Bolivia, Guatemala, and E n. idor.
. The manifest importance of cultivating the
most friendly relations Avith all the indepen
dent States upon this continent ha« induced
me to recommend appropriations necessary for
the maintenance of these missions.
I recommend to Congress that an appropria
i tion be made to be paid to the Spanish gov
’ ernment for the purpose of distribution among
the claimants in “the Amistad case.” I en
tertain the conA'iction that this is due to Spain
under the treaty of the of October,
I 1795; and, moreover, that, from the ernest
j manner in Avhich the claim continues to be
urged, so long as it shall remain unsettled, it
• will be a source of irritation and discord be
i tween the two countries, which may prove
highly prejudicial to the interest of tlxe Uni
ted States. Good policy, no less than a faith
ful compliance Avith our treaty obligations,
requires that the inconsiderable appropriation
demanded should be made.
A detailed statement of the condition of the
finances Avill bo presented in the annual re
port of the Secretary of the Treasury. The
i imports for tho last fiscal year, ending on the
30th of June, 1847, were of the value of one
hundred and forty-six million five hundred
. and forty-five thousand six hundred and thir
ty-eight dollars ; of Avhich the amount ex
ported A\'as eight million eleven thousand one
liandrod and fifty-eight dollars, leaving one
hundred and thirty-eight million five hundred
and thirty four thousand four hundred and
eighty dollars in the country for domestic use.
The value of the exports for the same period
was one hundred and fifty-eight million six
hundred and forty-eight thousand six hun
dred and twenty-two dollars ; of which one
bundled and fifty million six hundred and
thirty-seven thousand four hundred and sixty
| four dollars consisted of domestic productions,
and eight million eleven thousand one hun
dred and fifty-eight dollars of foreign articles.
The receipts into the treasury for the same
period amounted to twenty-six million three
hundred and forty-six thousand seven hun
dred and ninety dollars and thirty seven cents,
of Avhich there Avas derived from customs
tAventy-three million seven hundred and forty
seven thousand eight hundred and sixty-four
dollars and sixty-six cents ; from sales of pub
lic lands, tAvo million four hundred and nine
ty-eight thousand three hundred and thirty
five dollars and twenty cents; and from inci
-1 dental and miscellaneous sources, one hundred
I thousand ffve hundred and seventy dollars and
fifty one-ceuts. The last fiscal year during
which this amount Avas received embraced five
j months under the operation of the tariff act of
1842, and seA r en months during which the ta
riff act of 1846 was in force. During the five
months under the act of 1842, the amount je
ceiA’ed from customs was seven million eight
hundred and forty-two thousand three hun
dred and six dollars and ninety cents, and
.during the seven months under the act of
1843 the amount received was fifteen million
nine hundred and live thousand live hundred
and fifty-seven dollars and seventy-six cents.
The nett revenue from customs during- the rear
e%ding on the first of December, 13 16. 1e n? the last
year under the operation ol the tariff act of 1842
was twenty-two million nine hundred and seventy
one thousand four hundred and three dollars and
ten cents; and the nett revenue from customs du
ring the year ending on first of December,
1847, being the first year under the operation of
the tariff act of IS4G, was about thirty-one million
five hundred thousand dollars; being an increase
of revenue for the first year under the tariff act of
184 3, ol more than eight millions five hundred
thousand dollars over that of the last year under
the taritf of 1842.
The expenditures during the fiscal year ending
on the thirtieth of June last, were fifty-nine mih
lions four hundred and fifty-one thousand one hun
dred and seventy-seven do] irs and sixty-live cents:
of which three million five hundred and twenty
two thousand and eighty-two dollar* and thirtv
seven cents was on account of payment of princi
pal and interest of the public debt, including trea
sury notes redeemed and not funded. The expen
diture*, exclusive of payment of public debt, were
fifty-five millions nine hundred and twenty-nine
thousand and ninety-five dollars and twenty-eight
cents.
It is estimated that the receipts into the treasu
ry for the fiscal year ending on the thirtieth of
June, 1818. including the balance in the treasury
oa the first of July last, will amount to about for
ty-two million ei_ht hundred and eighty six thou
sand five hundred and forty-five dollars and cightv
eent*,o wi.i ;h thirty-one million,it is estimate d.wfill
be derived from customs; three million five hundred
thousand from thp sale of public lauds; four hun
dred thousand from incidental sources, including
sales made by the Solicitor of the Treasury; and
six million two hundred and eighty-five thousand
t .vo hi nlred and ninety-so ir dollars and fifty-five
cents from loans already authorize*; by law, which,
together w ith ihe balance in the treasury on the
first of July last, make the sum estimated.*
The expenditures for the same period, if peace
with Mexico shall not be concluded, and the army
shall be increased as is proposed, will amount,
including the necessary payments on account ot
principal and interest of the public debt and
treasury notes, to fifty-eight million six hundred
and sixty dollars and seven cents.
On the first of the present month, the amount of
the public debt actually incurred, including treasu
ry notes, was forty-five million six hundred and
fifty-nine thousand six hundred and fifty-nine dol
lars and forty cents. The public debt due on the
fourth ol March, 1845. including treasury notes,
w T as seventeen million seven hundred and eighty
eight thousand seven hundred and ninety-nine dol
lars and sixty-two cents; and consequently the ad
dition made to the public debt since that time is
twenty-seven thousand eight hundred and fifty
nine dollars and seventy-eight cents.
Os the loon oj twenty-three millions, authorized
by the act of the twenty-eighth of January, 1847,
the sum of live millions was paid out to the’ public
Creditors, or exchanged at par for specie ; the re
maining eighteen millions was offered for specie to
the highest bidder not below par, by an advertise
ment issued by the Secretary of the Treasury .and
published from the ninth of February until
tenth of April, 1347, when it was awarded to the
several highest bidders, at premiums varying- one
eighth of one per cent, to two per cent, above par.
The premium has since been paid into the trea
sury, and the sums awarded deposited in specie in
the treasury as fast as it was required by the
wants of the government.
To meet the expenditures for the remainder of
the present and for the next fiscal vear, ending on
the thirtieth of June, 1849, a further loan, in aid ol
the ordinary revenues of the government, will be
necessary. Retaining a sufficient surplus in the
treasury, the loan required tor the remainder of
the present fiscal year will he about eighteen mil
lion five hundred thousand dollars. If the duty op
tea and coflee be imposed, and the graduation of
the price of the public lands shall be made at an
early period of your session, as recommended, the
loan for the present fiscal year may be reduced to
seventeen millions of dollars. The loan may he
further reduced by whatever amount of expendi
tures can be saved by military contributions col
lected in Mexico. The most vigorous measures
for the augmentation of these contributions have
been directed, and a very considerable sum is ex
pected trom that source. Its amount cannot, how
ever, be calculated with any certainty. It is re
commended that the loan to’be made be authoriz
ed upon the same terms, and for the same time, as
that which was authorized under the provisions of
the act of the twenty-eighth of January, 1847.
Should the war with Mexico be continued until
the thirtieth of June, 1849, it is estimated that a
further loan of twenty million live hundred thou
sand dollars will be required for the fiscal year
ending on th t day, in case no duty be imposed on
tea and coffee, and the public lands be not reduced
and graduated in price, and no military contribu
tions shall be collected in Mexico. If the duty on
tea and coffee be imposed* a id the lands be redu
ced and graduated in price, as proposed, the loan
may be reduced to seventeen millions of dollars,
and will be subject to be still further reduced by
the amount of the military contributions which
may be collected in Mexico. It is not proposed,
however, at present, to a-k Congress for authori
ty to negotiate this loan for the next fiscal year, as
it is hoped that the loan asked for the remainder f
the present fiscal ye ir, aided by military contri
butions which may be collected in Mexico, may
be sufficient. If, contrary to my expectation,
there should be a nece sity for it, the fact will be
communicated to Congress in time for their action
durin' r the present session. In no event will a sum
exceeding six mi ions of dollars of this amount
be nc»d#d before the meeting of the session of
Congress in December, 1848.
The act of the thirtieth of July, 18'’5,“reducing
the diitif-s on imports, 77 has been in force since the
first ot December last; and I am gratified to state,
that all the beneficial effects which were antici
pated from its operation have been fully realized,
i he public revenue derived from customs during
the year ending on the first December. 1847, ex"-
ceeds by more tban eight millions of dollars the
amount received in the preceding year under the
operation of the act of 1842, which was superseded
and repealed by it. Its effects are visible iu the great
and almost unexampled prosperity which prevails
in every branch of business.
Whiie the repeal of the prohibitory and restrictive
duties of the act of 1842, and the substitution in
their place of reasonable revenue rates levied on
articles imported according to their actual value,
has increased the revenue and augmented our for
eign trade, all the great interests of the country
have been advanced and promoted.
The great and important interests of agricul
ture, which had been not only too much neglected,
but actually taxed under the protective policy
for the benefit of other interests, have been re
lieved of the burdens which that policy imposed
oa them; and our farmers and planters, under a
more just and liberal comraercia. policy, are find
ing new and profitable markets abroad for their
augmented products.
v-ur commerce is rapidly increasing, and is ex
tending more widely the circle of international ex
changes. Great as has been the increase of our
imports during the past year, our exports of domes
tic products sold in foreign markets have been still
greater.
Our navigating interest is eminently prosperous.
The number of vessels built in the United States
has been greater than durin any preceding period
of equal length. Large pro As have been derived
by those who have constructed as well as by (hose
who have navigated them. Should the ratio of in
crease in the number of our merchant vessels be
progressive, and be as great for the future as dur
ing the past year, the time is not distant when our
tonnage and commercial marine will ho larger than
that ol any other nation in the world.
W hilstthe interests of agriculture, of commerce,
and of navigation have been enlarged and invigora
ted, it is highly gratifying to observe that our roan
ulacturse* are also in a prosperous condition. None
of fibe rm.ious effects upon this interest, which
were apprehended by some, as the result of the
operation of the revenue system established by the
act of 18-4 G, have been experienced. On the con
trary, the number of manulaciories. and the amount
ot capital invested by them, is steadily and ra
pidly increasing, affording gratifying proofs that
America.' enterprise and skill employed iu this
branch of domestic industry, with no other advan
tages than those fairly anil incidentally accruing
from a just system of revenue duties, are abundant
ly able to meet successfully all competition from
abroad, and still derive fair and remunerating
profits.
While capital invested in manufactures is yield
ing adequate and fair profits under the new sys
tem, the wages of labor, whether employed in
manufactures, agriculture, commerce, or naviga
tion, have been augmented. The toihng millions,
whose daily labor furnishes the supply ol food and
raiment, and all the accessaries and comforts of
i • life, are receiving higher wages, and .more steady
[ and permanent employment than in any other
i country, or at any previous period of our own his
‘ tory.
So successful have been all branches of our in
dustry, that a foreign war, which generally dimin
; ' ishes the resources of a nation, has in no essential
I ; degree retarded our onward progress, or checked
our general prosperity.
With sucli gratifying evidences of prosperity,
and of the successful operation of the revenue act
of 1846, every consideration of public policy re
commends that it shall remain unchanged. It is
- hoped that the system of impost duties which it
established may be regarded as the permanent
policy of the country, and that the great interests
affected by it may not again be subject to be inju
riously disturbed, as they have heretofore been,
bv frequent and sometimes sudden changes.
For the purpose of increasing the revenue, and 1
without chinging or modifying the rates imposed j
by the act of 184 G on the dutiable articles cm- |
braced by its provisions, I again recommend to
your favorable consideration the expediency of
levying a revenue duty on tea and coffee. The
policy which exempted these articles from duty
daring peace, and when the revenue to be derived
from them was not needed, ceases to exist when
the country is engaged in Avar, and requires the
use of all its available resources. It is a lax which
would be so generally diffused among the people,
that it Avouid be felt oppressively by none, and be
complained of by none. It is believed lhat there
are not, in the list of imported art clcs, any which
are more properly the subject of Avar duties than
tea and coffee.
It is estimated that three millions of dollars
would be derived annually by a moderate duty im
posed on these articles.
Should Congress avail itself of this additional
source ot revenue, not only would the amount of
the public loan rendered necessary by the war
with Mexico be diminished to that extent, but the
public credit, and the public confidence in the
ability and determination of the Government to
meet all its engagements promptly, would be more
firmly established, and the reduced amount of the
loan which it may be necessary to negotiate, could
probably be obtained at cheaper rates.
Congress is, therefore, called upon to determine
whether it is Aviser to impose the war duties re
commended. or, I y omitting to do so, increase the
public debt annually three millions of dollars so
long as loans shall be required to prosecute the
Avar, and afterwards provide, in some other form,
to pay the semi-annual interest upon it, and i Iti
mately to extinguish the principal. If, in addition
to these duties, Congress should graduate and re
duce the price of such of the public lands as ex
perience has proi'ed will not command the price
placed upon them by the government, an additional
annual income to the treasury of betAveen half a
million and a million of dollars, it is estimated,
Avouid be derived from this source. Should both
measures receive the sanction of Congress, the
annaui amount of public debt necessary to be con
tracted during the continuance of the Avar, would
be reduced near four millions of dollars. The du
ties recommended to be levied on tea and coffee,
it is proposed, shall be limited in their duration to
the end of the-war, and until the public debt ren
dered necessary to be contracted by it shall be
discharged The amount of the public debt to he
contracted, should be limited to the lowest practi
cable sum. and should be extinguished as earlv
after the conclusion of ihe war as the means oj
the treasury will permit.
With this view, it is recommended that, as soon
as the war shall be over, all the surplus in the
treasury, not needed for other indispensable objects,
shall constitute a sinking fund, and be applied to
the purchase of the funded debt, and that authori
ty be conferred by law for that purpose.
The act of the sixth of August, 18 5, “to estab
lish a warehousing system, 77 has been in operation
more than a year, and has proved to be an impor
tant auxiliary to the tariff act of 1846, in augment
ing the revenue, and extending the commerce of
the country. Whilst it has tended to enlarge com
merce, it has been beneficial to our manulactures,
by diminishing forced sales at auction of foreign
goods at loav prices, to raise the duties to be ad
vanced on them, and by checking fluctuations in
the market. The system, although sanctioned by
the experience of other countries, v/as entirely
new in the United States, and is susceptible ot im
provement in some of its provisions. The St-cre
i tary of the 'Treasury, upon Avhora was devolved
large discretionary powers in carrying this mea
sure into effect, has collected, and is now colla
ting, the practical results of the system in other
countries, where it has long been established, and
Avill report at an early period of your session, such
further regulations suggested by the investigation
as may render it still more effective and benefi
cial.
By the act to “provide for the better organiza
tion of the Treasury, and for the collection, safe
keeping, and disbursement of the Public Revenue, 77
all banks were discontinued as fiscal agents of the
Government, and the paper currency issued by
them Avas no longer permitted to be received in
payment of public dues.
The Constitutional Treasury created by this act
went into operation on the first of January last. —
Under the system established by it, the public
moneys have been collected, safely kept, and dis
bursed by Ihe-dtrect agency of officers of the gov
ernment in gold and silver, and transfers of large
amounts have been made from points of collection
to points of disbursement, without loss to the
Treasury, or injury or inconvenience to the trade
of the country.
While the fiscal operations of the Government
have been conducted with regularity and ease, un
der this system, it has hau a salutary effect in
checking and preventing an undue inflation of the
paper currency issued 6a* the Banks which exist
under State charters. Requiring, as jt does, all
dues to the Government to be paid in gold and sil-
A r er, its efl’ect is to restrain excessive issues of Bank
paper by the Banks disproportioned to the specie
in thier v'aults, for the reason that they are at all
times liable to be called on by the holders of their
notes for their redemption, in order to obtain
specie for the payment of duties and other- public
dues. The banks, therefore, must keep their bu
siness within prudent limits, and be always in a
condition to meet Such calls, or run the hazard of
being compelled to suspend specie payments, and
be thereby discredited. The amount of specie
imported into the United States during the fast fis
cal year was twenty-four million one Hundred and
twenty-one thousand two hundred and eighty-nine
dollars; of which there Avas retained in the country
twenty-two million two hundred and seventy-six
thousand one hundred and seventy dollars. Had
the former financial system prevailed, and ihe pub
lic moneys been placed in deposite in banks., nearly
the whole of this amount would bare go ne into
their vaults, not to be thrown into circulation by
them, but to be w ithheld from the hands of the
people as a currency, and made the basis of new
and enormous issues of bank paper. A large pro
portion of the specie imported has been paid into
the Treasury for public dues; and after having
been, to a great extent, recoined at the Mint, has
been paid out to the public creditors, and gone in
to circulation as a currency among the people.—
The amount of gold and silver coin now in circu
lation in the country is larger than at any former
period.
The financial system esfablished by the consti
tutional treasury has been, thus far, eminently suc
cessful in its operations; and I recommend an ad
herence to all its essential provisions; and especi
ally to that vital provision Avhich wholly separates
the government from all connexion Avith banks, and
excludes bank paper from ah revenue receipts.
In some of its details, not involving its general
principles, the system is defective, and will re
quire modification. These defects, and such a
mendments as are deemed important, were sot
forth in the last annual report of the Secretary of
the Treasury. These amendments are again re
commended to the early ?md favorable co side ra
tion .of Congress,
During the past year, the coinage at the rsint
and its branches has exceeded twenty millions of
dollars. This has consisted chiefly in concerting
the coins of loreign countries into American coin.
The largest amount of foreign oofn imported has
been received at New York; and if a branch, mint
Avere established at that city, all the foreign coin
received at that port could at once be converted
into our OAvn coin, without the expense, risk, and
delay of transporting it to the mint for that pur
| pose, and the amount recoined would be pinch
. larger. ♦
Experience has proved that foreign coin, and
especially foreign gold coin, will not circulate ex
i tensively as a currency among the people. The im.-
; portant measure .of extending our specie circu
lation, both of gold and silver, and of .diffu sing it
among the people, can only be effected by con
verting such foreign coin into American coin. I
i repeat the comm end at ion contained in my last an
• nual message for the establishment of a branch of
, the mint ot the United States at the city of New
I York.
f All the public lands which hare been surveyed
■nin-tui. .am es iur.i-ii-I'. mi iu**
and w'ere ready for the market, have been pro
claimed for sale during the past year. The quan
tity offered and to be offered for sale, under pioc
lamations issued since the first of January last, a
mounts to nine million one hundred and thirty
one acres. The prosperity of the western States
and territories in w hich these jands lie will be ad
vanced by their speedy sale. By withholding
them from a market, their growth and increase ol
population would be retarded, while thousands of
our enterprising and meritorious frontier popula
tion would he deprived of the opportunity of se
curing freeholds for themselves ar.d their families.
But in addition to the general considerations which
rendered the early sale of these lands proper, it
was a loading object at this time to derive as large
a sum as possible from this source, and thus dimin
ish, by that amount, the public loan rendered ne
cessurj by the existence of a foreign Avar.
It is estimated that not less than ten millions of
, acres of the public lands will be surveyed and be
! in a condition to be proclaimed for sale during the
year 18-48.
In ray last annual message. I presented the rea
sons which, in my judgment, rendered it proper to
graduate and reduce the price of such of the pub
lic lands as have remained unsold for long periods
after they had been offered for sale at public auc
tion.
Many millions of acres of public lands lying
within the limits of several Wes ern State s, have
been offered in the market, and been subject to
sale at private entry for more than twenty tears,
and large quantities for more than thirty years, as
t le lowest price prescribed by ihe existing lua t
and it has been found that they will not command
that price. They must remain unsold and unculti
vated for an indefinite period, unless the price de
manded for them by the government shall be re
duced. No satisfactory reason is perceived why
they should be longer held at rates above their
real value. At the present period, an additional
reason exists for adopting the measure recommend
ed. When the country is engaged in a foreign
war, and we must necessarily resort to loans, it
Avouid seem to be the dictate of wisdom that we
should avail ourselves of all our resources, and thus
limit the amount of the public indebtedness to the
lowest possible sum.
1 recommend that the existing laws on Ihe sub
ject of pre-emption rights be amended and modified
so as to operate prospectively, and to embrace all
who may settle upon the public lands and make
improvements upon them before they are surveyed,
as Avell as afterwards, in ail cases where such set
tlements may be made after the Indian title shall
have been extinguished.
If the right of pre-emption be thus extended, it
will embrace a large and meritorious class of our
citizens. It will increase the number of small
freeholders upon our borders, w ho w ill be enabled
thereby .to educate their children, and otherw a *
improve their condition, while they will be found
at all times, as they have ever proved themselves
to be in the hour of danger to their country, among
our hardiest and best volunteer soldiers, ever ready
to tender their services in cases of emergency, and
among the last to leave the field as long as an ene
my remains to be encountered. Such a policy will
also impress these patriotic pioneer emigrants with
deeper feelings of gratitude tor the parental care
of their government, when they find their dearest
interest secured to them by the permanent Jaws of
the land, and that they are no longer in danger of
losing their hofnes and hard-earned iniproremen.s,
by being brought into competition with a more
wealthy class of purchasers at the land sales.
The attention pf Congress Avas invited, at their
last and the preceding session, to the importance
of establishing a Territorial government over our
possessions in Oregon ; and it is to be regretted,
that there was no legislation oa the subject. Our
citizens who inhabit lhat distant region of country,
are still left Avithout the protection of onr laws, or
any regularly organized government. Before the
question of limits and boundaries of the territory
of Oregon Avas definitely settled, from the necessi
ty of their condition, the inhabitants had establish
ed a temporary government of their own. Besides
the want of legal authority for continuing such a
government, it is wholly inadequate to protect them
in their rights of person and property, or to secure
to them the,enjoyment of the privileges of other
citizens, to which they are entitled under the
Constitution of the United States. They should
have the right of suffrage, be represented in a
Territorial Legislature, and by a delegate in Con
gress ; and pose s all the rights and eriviicges
Avhich citizens oj other portions of the i errilories
of the Unit cl. States have heretofore enjoyed, or
may noAv enjoy.
Oarjudici I system, revenue Laws, l uavs regu
lating trade and intercourse with the Indian tribes,
and the protection of our law s generally, should Le
extended over them,.
In addition to the inhabitants in that territory
Avho had previously emigrated to it.largt numbers
of gut citizens have followed .' hem during the pres
ent year ; and it is not doubted that during the next
and subsequent years, their numbers will be great
ly increased.
Congress, at its last session, established post
routes leading to Oregon, and betAveen different
points within that territory, and authorized the es
tablishment of post offices at “Astoria and such
other places on the coasts of the i'acilic, within
the territory of the United States, as the public in
terests may require. 77 Post offices have accord
ingly been established, dejmiy postmasters appoint
ed, and provision made for the transportation of the
mabs.
The preservation of peace w T itb the Indian tribes
residing Attest of the Rocky Mountains, will render
it proper that authority should be given by law for
the appointment of an adequate number of Indian
agents to reside among them.
1 recommend that a surveyor general’s office he
established in that territory, and that the public
lands be surveyed and brought into market at an
early period.
I recommend also, that grants, upon liberal tei ms,
of limited quantities of the public lands, be made to
citizens of the United States w r ho have emi
grated, or may re after within a prescribed pe
riod emigrate, to Oregon, and settle upon them.—
These hardy and adventurous citizens, who have
encountered the dangers and privations of a 1 >ng
and toilsome journey, and have at length found a;i
abiding-place for themselves and their families
upon the utmost verge of om western limits, should
be secured in the homes which they have improved
by their labor.
I refer you to the accompanying report of the Secretary
of War for a detailed account of the operations of the va
rious branches of the public service connected with the
department under his charge. The duties devolving on
this department have been unusual y oncrons and re
sponsible dur ng the past year, and have been discharg
ed with ability and success.
Pacific relations continue to exist with the various In
dian tribes, and most of them manifest a strong friendship
for the U. States. Home depredations w’ere committed
during the past year upon our trains transporting sup
plies for the army, on the road between the western bor
ders of Missouri and canta Fe. These depredations,
which are supposed to have been committed by b inds
from the region of New Mexico, have been arrested bv
the presence of a military force, ordered oi.t for that
purpose. Some outrages have been perpetrated by a por
tion of the northwestern bands upon the weaker and
comparatively defenceless neighboring tribe-*. Prompt
measures were taken to prevent such ooc.ux;cnces in fu
ture.
lletAA'ecn one and two thousand Indians, belonging to
several tribes, have been removed during the year from
the east of the Mississippi to the country allotted to
them west of lhat river, as their permanent borne, and
arrangements have been made for others to follow.
Since the treaty of 1845 with the Cherokee*, the feud*
among them appear to have subsided, and they have be
come more united and contented than they have been
for many years past, ’l'ffe commissioners, appointed in
pursuance of the act of J«j*e 27th, 1846, to settle claims
arising under the tieaty of ’3O with that tribe,
have executed their duties; and after a patient investi
gation, and a full and /air examination of all the cases
brought before them, closed their labors fn the jopon/h of
July last. This is the fourth board of fououlssiiaiers
which has been organized under this treaty. Ample op
portunity has been afforded to all those interested to
bring forward their claims. No doubt is entertained
that impartial justice lias been done by the late board,
and that ail .valid claims embraced by the treaty have
been considered and allow ed- This result, and the final
settlement to be made with this tribe, under the treaty
of 1846, which will l»e completed and laid before you du
ring your session, will adjust questions of controversy
between them and the Cubed States, and produce a
state of relations with .hem simple, well defined, *nd
satisfactory.
Under the discretionary authority conferred by the act
of the third of March last, the annuities due to the va
rious tribes have been paid during the present year to
Tire heads of families instead of to the cheifs, or such
persons as they might designate, as required by the laws
previously existing. This mode of payment has given
general satisfaction to the great body of the Indians,—
Justice has been dope to them, and they are grateful to
the government for it. A few chiefs and interested per
sons may object to this mode of payment, but it is be
lieved te be the only mode of preventing fraud and im
posff iou from , lacing practised upon the great body of
common Indians, constituting a majority of all' the
tribes.
It is gratifying to perceive that a number of the tribes
have recently manifested an increased interest in the es
tablishment of schools among thorn, and are making ra
pid advances in agriculture—some of them producing a
sufficient quantity of food for their support, and in some
case* a surplus to dispose of to their neighbors. The
- ■ jm—»>«3MPW!yw v >
■ j comforts by which those wife have received even a very
. * limited education, and have engaged in agriculture are
i surrounded, r< a I gradually to draw off their less civilized
brethren from Die precarious means « f subsistence by
the chase, to habits of’ labor and civilizeticn.
The accompanying report of the Secretary of the Na
! vy presents a satisfactory and gratifying account of the
condition ami operations of the naval service* during the
- past year. Our commerce has been pursued with in
i’ | creased activity, and with safety and success, in every
,- j quarter of the globe under the protection of our dag,
which the navy has caused to he respected in the most
distant seas.
In the gulf of Mexico, and in the Pacific, the officers
and men of our squadrons have displayed di.-Mo.uishcd
gallantry and performed valuable services. In the early
stages of the war with Mexico, her ports on both coasts
were blockaded, and more recently many of them have
boon raptured and held by the navy when acting in co
operation with the land forces, the naval officers and
men have performed gallant and distinguished services
on land as well as on water, and deserve Hie high com
mendation of the country.
V' hde other maritime powers arc adding to their na
vies 1 irge numbers of war steamers, it was a wise poli
cy on our part to make sim lar additions to our navy,—
The four war steamers authorized by the act of the t>d
March, 1847, are in course of construction.
* In a idition to the four war steam ei 8 authorised bvthia
act, the Secretary of the Navy has, in pursuance of its
> provisions, entered into contracts for the construction of
five steamers,to be employed in the transportation of the
United States Mail “from New Fork to Now Orleans,
touching at Charleston, Savannah, and Havana, and
from Havana to Chagres; for three steamers to be em
ployed in like manner from Panama to Oregon, “so as
> to connect with the mail from Havana to Chagres across
• the isthmus;” and ti,r five steamers to be ip
; likejraanner from New Vork to Liverpool, These steam
ers will be the property of the constructors, but are to I o
I built “under the superintendence am] direction of ans
val constructor in the employ of the Navy Department,
and to be so constructed us to render them convertible
a: the least possible expense into war steamers of the
first class.”
A prescribed number of naval officers, as well as a
• ffice agen s are to lie on board of them; and an
nuity is reserved to tie Nav y Department at all times
to ‘'exercise control over said steam-hips,”nnd “to have
the right” “to take them for the oxc! isive tise and sor
vue of the United “upon making proper com
pensation to the cojiji u f rs tlierefor,”
Whilst these steam-ships will he employed in trans
i porting the mails of the I nited States coastwise, and to
foreign countries, upon a annual compensation to bo
(laid to the owners, they will be always ready, upon an
emergency requiring it, to be converted into war steam
ers ; and tire right rose!’ • d to take them for public use,
will add greatly to the tfficiency and strength of this
description of our naval force. To the steamers thus
: author zed under contracts made by the Secretary of the
, Navy, she uid be added five other strainer authorized
under contract-made in pursuance of law by the post
master General, making an addition, in the wjmje, of
eighteen war steamers, subject to be taken for pu’ulic
use. As further contracts for the transportation of the
mail to foreign countries may be authorized by Congress,
this number may l.c enlarged indefinitely.
The enlightened policy by which a rapid rommiufcn
tion with the various distant parts of the globe is estab
lished, by means *. f American built sea steamers, would
I find amample reward in the increase of our commerce,
and in making nar country and its resources more favor
ably known abroad ; but the national advantage is still
greater, of having our naval officers made familiar with
steam navigation ; and of having the privilege of taking
the ships already equipped for immediate service at a
moment’s notice, and will ba cheaply purchased by the
compensation to be paid for the transportation of tho
mail in them, over and bove the postages received.
A just national pride, n i less than our commercial in
terests, would seem to -favor the policy of augmenting
the number of this description of vessels. They can be
hu It in our country cheaper and in greater numbers than
in any ot her in the world.
I rtferyou to the accompanying report of the Postmas
ter General f..r a detailed and satisfactory account of the -
condition and operations of that department during the
past year. It is grat fy ng to find that, wit hin so sin i t a
period alter the reduction in the rates of postage, ami
m.tw tbstanding the great increase of mail service, if«
revenue r< ce.ved for the ye ir will be sufficient to defre *
idl the expenses, and that no further aid will bo required
from the treasury for that purpose.
The fii>t ofthe American mail steamers authorized by
the act ofthe third of March, le4. r >, was completed and
e itertd upon the service on tiie first of June last, and is
now on her third voyage to Diemen and other interme
diate ports. The other vessels authorized under the
provisions of that act are in course of construction, and
; will be put upon the Due as soon ns completed. Con
tracts have also beeen made for the transportation of tho
mail in a steamer from Ch tries ton to H .van a.
A reciprocal and satisfactory postal arrangement has
been made by the Postmaster General with the author -
ties ofilremen, and no difficulty is apprehended in mak
ing similar arrangements with all other Powers with
which we may have communications by mail steamers,
except with Great Britain,
On the arrival of the first of the American steamers,
b ;und to Bremen, at Sot than pt m, in the month of
I June last, the British post officemrecled the collection of
I discriminate g po tages on all letters and ether mailable
matter, whicu .-ue took out to Great Britain, or which
went into the British Post office on their way to France
and other part, of Europe. The effect of the order ofthe
British post office is to subject all let ters and other mat
ter transported by American steamers to double postage,
one posture hav ng been previously paid on them to tho
United States, while letters transported in British steam
ers are subject to.pay but a single postage. This mca?
sure was adopted with the avowed object of protecting
the British lino of mad steamers now running between
Bo ton and Liverpool, and, if permitted to continue,
must speeddy put an end to the transportation of all let
ters and other matter by American steamers, and give
to British steamers a monopoly <-fthe business, A just
and fair reciprocity is all that we desire, and on this wp
must insist. By oiu laws, no such discrimination is
made against British steamers bringing letters into our
ports, but all letters arriving in the United Sta'es are
subject to the.same rate of postage, whether brought in
British or American vessels. I refer you to the report
ofthe Postmaster General for a full statement of tho
f .ets of the rase, and of the steps taken by him to cof
fset this inequality. lie has exerted all the power con
ferred upon him by the existing laws.
The Minister ot the United States at London lias
brought the subject to the at tention of the British govern
ment, and is now engaged in negotiations for the pur
pose id*adjusting reciprocal postail arrangements, which
shall be equally just to both countries. Should he fail in
concluding such arrangements, and should Great Britain
insist on enforcing the unequal and unjust measure sfio
has adopted, it will become necessary to confer addition
al powers on the Postmaster General, in order to enable
him to meet the emergency, and to put our own steam
ers on an equal foot ng with British steamers engaged in
transporting tiie mail between the two countries; and I
recommend that such powers be conferred.
In view of the existing state of our country, I trust it
may not be inappropriate, in closing this communica
tion, to call to mind the words of wisdom and admoni
tion of rtie first and most illustrious of my predecessors,
in his farewell address to his countrymen.
That greatest and best of men, who served his coun
try’so long, and loved it so much, foresaw, with “seri
ous concern,” the danger to our Union “of characteriz
ing parties by geographical discriminations-— Northern
and Southci'ii , Atlantic and Western —whence designing
men may endeavor to excite a belief that there is a real
d.fference of local interests and views,” and warned hip
country men against it.
So deep and solemn was his conviction of tiw import
tance of the Union and of preserving harmony between
its different parts, that he declared tohis coufitrvmen in
that address, “it is of infinite moment that you should
properly estimate the immense value of your national
Union to your colle live and individual happiness ; th*u
youj-houldcfu r.sh a cordial, habitual and immoveable
attachment to it; accustoming yourselves to think and
to speak of it as a palladium of your political safety and
prosperity; watching for its preservation with jealous
anxiety ; discountenancing whatever may suggest even
a suspicion that it can In any event be abandoned ; and
indignantly frowning upon the first dawning of every
attempt to alienate any portion of our country’ from the
rest, or to .enfeeble the sacred ties w hich now link to -
gether the various parts.”
i Aft r the lapse of half a century, these admonitions of
Washington fall upon us with ail the force of truth. It
j if difficult to est m ite the “immense value” of our gib
: rious Union of confederated States, to. which we are so
| much indebted for our growth in population a id wed h,
j and f>r all that constitutes us a great and a happy nation.
; How unimportant arc all oar differences of opinion upon
minor questions of public policy, compared with its
preservation ; and how scrupulously should we avoid ail
agitating topics which may tend to distract and divide
us into contending parties, separated hy r geographical
lines, whereby it may be weakened or endangered.
Invoking the blessing of the Almighty Euler of the
Universe upon your deiiberations, it will be my highest
duty, no less than my sincere pleasure, to co-operato
with you in all measures which may tend to promote tho
honor and enduring welfare of cur common country.
JANIES K. POLK.
IVashi.xotox, December. 1847.
DTF Advertisements edad'ed, will be attended to in
Our next.
AUGUSTA THEATRE,.
XV. C. FORBES,
Lessee and Manager.
LAST MGHTOF TTIE SEASON.
j FA TURD AY E VENL\G. DEC. 11.1547.
W ill be performed the Comedy of
A ROL4ND FOR AN OLIVER.
Allred Highflyer, ... Mr. Crisp.
Maria Darlington, ... Mrs. Forbes.
FAS SEEL, by Miss AMILIE.
To conclude with the Drama of the
texan Ranger.
Donna Maria, .... Miss Clara Ellis.
fTT’Hnx Tickets 75 cents—Fit 50 cents.
dOecll
UNDER-SHIRTS AND DRAWERS
OF MERINO, COTTON, SILK, >nd ail
other kind?, cheap, at
' Oet.-1 7 IV.M O. PRICE &CO S.