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THE GEORGIAN. ' nr~wu.MA.TnT niiTiiooa, ' OITV 48 cbu.VTV I'W’irtll, And publishor of tho Ljiavs HUSKY It. JACKSON, Am MESNAOI TtUoic-CilkcHS of the Senate amt of the Ihusc of ftcprcsentati % The anttunl nioeling of Ctingro?? ih always nu interesting cvont. The Uoprosotitativos of tho Status and of tho Poopio coino fresh from tliuir comlifttoute to I tiled comisul logethur for tho COift? inon good. Alter tin oxiatonco >qf iiour three- fourths of u century ns a froa amHiutepomloiit republic, tho problem no longer remains to lid solved, whether man is eapiddo of solf-govorri- incut. The success of our udmirabld system is n conclusive reflitntiou of tho theories of thoao in other countries who maintain tkafc!*a favored f«\v” nro born to rule, and that thu nuw« of man* kind must bo gnveruod by force. Subject to ,no arbitrary or horedltary authority, the poopio tire tho ohlv sovMoigns recognised by our eoiwtUu- lion. Numerous emigrants of overy Jiuongo and Inngungo, attracted by tho civil and religious froo- dont avo. enjoy, nml by our lmppycammion, an nually crowd to our shores,and transfer tlioir heart, not less than thuirullegiunco, to tho country whoso dominion belongs alouo to the people. No couutry has buen so much favored,or shotild Acknowledge with doepor revoronco tho manifes tations of Urn Diviuo protection. An alUviso Cro- ator directed and guarded us in our infiiut struggle for freedom, and has constantly watched over our surprising progress, until wo have become ono of tliu groat nations of tho enrth. Itte in a country thus favored, and under a go vernment in which tho executive and legislative branches hold their authority for limited periods, »Hko from the people, und where nil uro respon sible to their respective constituencies, that it is again my duty to communicate to Congress upon the state of tho Union, and tho present condition of public affairs. r During the past year the moat gratifying proofs are presented that opr country has been blessed with a wido-sproud and Universal prosperity.— There lias beon no period since thu government was fouuded, when all tho industrial pursuits oft our people havo been more successful, or when labor in all branches of business luus received a fairer or bettor reward. From our ubuudunce wo ' havo been enabled to perform tho pleasing duty of furnishing foo^l for tho starving uullious of loss favored countries. In tho enjoyment of tho bouuties of Providouco at hqmo, such ns havo ruroly fallen to tho lot of any people, it is causa of congratulation, that our intercourse with all tho Powers of the eurtli, ex cept Mexico, continues to bo of an amicablo character. It has ovor boon our chorished policy to culti vate peace and goad will with all natious; and title policy has been steadily pursuod by mo. No cltango lias taken place in our relations with Moxico since tho adjournment of tho last Con- G The war in which tho United States were to eugago with tha government of tin country still continues. I deom it unnecessary, after tho full exposition of thorn containod in my mossngo of tho eleventh of May, 1846, and in my anuuid mcasage at tho comnioucomont of tho session of Congress in December lost, to reiterate tho serious causes of complaiut which wo bud agaiust Mexico boforo she comineuced hostilities. It is siifficiout on the present occasion to say, that tho wuntaif violation oftho rights of ponton and property of our citizens committed by Moxi- co, nor repeated acts of bad faith, througha long series of years, and hur disregard of solemn treat ies, stipulating for indemnity to our injured cit izens, not only constituted ample cause of war on our port, but wore of such an aggravated char acter as would havo justifiedi\s before tho whole worldia resortiugto this extronie.»romody. With ail anxious desire to avoid a rupture between tho two countries, we forbore for years to assert our ’ clear rights by force, ntrd continued to seek re dress for the wrongs wo had sutfered by uniicn- ble negotiation, in tho hope that Mexico might yield to pacific councils nud the demands ofjus- tice. In this liopo we wore disappointed. Oar minister of peace sont to Mexico was Insultingly rejected. The Mexican government refused o- ven to hear tho terms of adjustment which he was authorized to propose ; ami finally, under wholly unjustifiable pretexts, involved tho two countries uiwat, by invading tho territory of tho State of Texas, striking tho first blow, and shed ding the blood of our citizens on pur own soil. . Though tho United State? word thdaggrioved nation, Mexico commenced tho war, nud wo were compelled, in solf-dufonco, to ropel tho in vader, ana to vindicate tho national honor nml in terests by prosecuting it with vigor until we could obtain u just uud honorable pence. On learning that hostilities had been commenc ed by Mexico, I promptly communicated tlmt fact accompauiud with a succinct statement of our oth- er causes of complaint against Moxico, to Con gress 5 and that body, by the act oftho thirteenth of May 1846, declared Unit “by the net of tho re public of Moxico, a state of war exists betwcuu that government and tho United States,”—this act declining the “war to exist hy tho act of tho re public of Mexico,” nud making provision forits prosecution “to a speedy and successful termina tion,” wan passed with grout unanimity by Con gress, there being but two negative voteH in tho Senate, and but fourteen in tho Ilottso of Repre sentatives. Tho oxiriteuco of tho war having thus boon de clared by Congress, it became my duty, under the constitution and the laws, to conduct and proso- cute it. This duty has boon performed; and though, at every stage of its progress,! havo mani fested a willingness to terminate it by a just peaco, Mexico lias refused to uccodo to any terms which could bn accepted by the United Suites, cousia- toutlv with the nutionu! honor aud interest. The rapid and brilliant successes of our arms, and tho vast extent of the ouomy’s territory which had beoii overrun and conquered, before the closo of tho last session of Congress, were fully Known to tlmt body. Since tlmt timo, the war has been prosecuted witli increased energy, and I am gratified to state with a succoss winch com mands universal admiration History presents no parallel of so many glorious victories uciiioved by any nation within so Hliort a period. Our ar my, regulars and volunteers, have covorcd them- soIvoa with imperishable honors. Whonevor aud wherever our forces have encountered tho enemy, though he was in vastly superior num- h0M» and often .entrenched in fortitied positions of his own selection, and of great strongtu, ho lias been defeated. Too much praise cannot bo bes towed upon our officers and men, regulars and volunteers, for their gullantry, discipline, indomi table courage and perseveruuce, all seeking tho postofdanger, aud vioing with ouch other in deeds of noblo during. . While every patriot’s heart must exult, and a prido animate overy bosom, iu he* holding the high proofs of courage, consummate military skill, steady discipline, nml humanity to the vanquished enemy, uxhihitud by our gallant army, tho imtionis culled to mourn over the loss ofinapy brave officers and soldiers who havo fill- lou m detcuco of their country’s honor and inter ests. The bravo dead mot their melancholy futo in a foreign Innd, nobly discharging their duty, and with their country’s flag waving triumphantly in the fuce oftho loo, Their patriotic deeds are justly appreciated,' and will long he remembered by their grateful countrymen. The parental cure of tho government they loved and served should bo extended to tlioir surviving families. Shortly after tho adjournment oftho lastsession or Congress, tho gratifying iutelligonco was r«- ceived oftho signal victory of Buena Visfuand of tho full of tho city of Vera Cruz, and with it tho strongcastlo of Sun Juan do Ullou, hy which it was defended. Believing that uftur these and other succosses so' honorublo to our arms and so disastrous to Moxico, tho period was propitious to atlord her another opportunity, if sho thought proporto embrace it, to outer into negotiations for peaco, a commissioner was appointed to pro ceed to the headquarters of our army, with full powers to enter upou negotiations, und to con clude u just und honorable treaty of peace. He was not directed to mako any now overtures of S euco, but was tho bearer of a despatch from tho ecretarv of State of the United States to the Min ister of Foreign Affairs of Moxico, in reply toouo received from the latter of tho twenty-second of February, 1847, in whioh the Mexican govern ment was informed ofhis appointment, and of his presence nt tho headquarters of pur army, and that he was iuYestud with full powers to cuuuludo a definitive treutyof peace, whenever tho Mexi can'government might signify a^deuire to do so. While I was unwilling to subject tho United States tp unother indignant rofiisai, I was yet re solved that the evils of tho war should not be pro tracted a day longer than might be rendered abso lutely necessary by tlie Mexican government. Care was taken to give no instructions to the oils word give) commissioner which could in any way interfere with our military operations, or relax our enur- gics in tho prosecution oftho war. II« possessed no authority in liny nmiiiiur'to control thorn ope ns. lie wur authorized to exhibit his instruc- MpM nclmli adirt E‘ idled b' _jfr nctivl ... tier ordure. These instnic- .—_ a ha view to intormk hostili ties, lintil tho treaty thus ratified by Moxico could be transmitted to iVushiugton, and recolvethe ac* tioii oftho government oftho United States. Tho commissioner was also directed, on reach ing tho army, to dolivor to the Geueral in com mand thtf "despatch which lid boro from tho Secre tary of Statute the Minister of Foreign Affitirs of Mexlbbi- and, on receiving it, tlio General was instructed by tlio Secretary of War ta{ causd it to bo transmitted to tlio.coiiunandur of tho Alexican force?, with n request that It might bo: communi cated to his government. : Tho coinniistiotipr did not roach .tho headquar ters of the army until after another brilliant vie- tore hud crowned our arms nt Cerro Gordo. Tho despatch which ho boro from f tho Secre tary of War to tho Generalin command of tho army was received by tlmt officor, then ut Jnlapn, on tho 7th day of* Riuy, 1847, togothor with tlio despatch from tho Secretary of State to tha Min ister of Foreign Affairs of Mexico; haviug boon transmitted to him from Vorn Cruz. Tho com missioner arrived at the hodd quarters of tho nrmy a fexV days afterwords. Ilis prosenco with the army nud hw diplomatic character wore made known to tlio Moxicun government, from.Puebla, on tho J2di of Juno, 1847, by the transmission of the despatch from the Secretary of State to tho •Minister of Foreign Afluirs of Mexico. Many weeks elapsed after its receipt, and no overtures were made, nor was any desire ex pressed by the Mexicuu goyornuiout to etiterinto nogotidtions for peiico: • »* .. Our artiiy.-puraued'its. rnttrch on tiio capital, and, ns it approached it, was met by forinidnblo resistance. Our forces, first encountered tho enemy, and achieved signal victories jn thu se verely contested battles of Contreras and Churu- Ijuhco. It svus not until after thoso actions had resulted in decisive victories, aud tlio capital of tho enemy was within our power, tlmt tho Mexi can guvormuent manifested uny disposition to outer into negotiations for peace; ana ovon then, as events havo proved, there is too.umoh reason to believe they .were msiuccre, and that in agree ing to go through tlio forms of negotiation, tho object was to gain timo. to strengthen the de fences of their capital, aud io prepare for fresh resKtaitce. * The General in command oftho army doomed it expedient to suspend hostilities temporarily, by outoriug into uu armistico with a view to tho oponiug of negotiations. Commissioners wore appointed ou tho part of Moxico to meet tiio com missioner on the part of the United States. Thu result of tlio conferences which took placo bo- tweon these functionaries of tiio two govern ments was a failure to conclude a treaty of peace. The commissioner oftho United States took with him tho project of u treaty already prepared, by tho terms of wbich tiio indemnity required by tiio United States was a cession of territory. .It if well known thut tho ouly indemnity which it is in tlio power of Mexico to make iu satisfac tion of the just and long deferred cluims of our citizensagninst her, and tho only moans by which she can reimburse tho United States for tho ox- ponses of tno -war, is a cession to tho United States of a portion of her territory. Moxico has no money to pay, ami no other menus of making the required indemnity. If wo refuse this, we can obtain nothing clso. To reject indemnity,by refusing to accent a cession of territory, would bo to abandon-nil our just demuuds, uud to wngo tlie war, bearing all its oxponscs, without a pur pose or dufniito object. A state of war abrogates treaties previously existing between tho belligerents, aud a treaty of peneo puts an end to all cluims for indemnity—for tortious acts committed, under tiio authority of oho government against tho citizens or subjects of another, unless they are provided lor in its stip ulations. A treaty of peace which would termi nate tho oxisting war, without providing for in-, domuity, would onnbla Mexico—the acknowledg ed debtor, and horsolf tho aggressor in tho war— to relieve herself from her just liabilities. Ity such a treaty, our citizens who hold just donmmfs agaiust her, would havo no remedy cither against Mexico or their own government. Our duty to theso citizens must forever prevent such u poaco, ami no treaty which does not provldo ninplo moans of discharging those demands can receive my sanction. A treaty of peace should sottle all oxisting dif ferences between tlio two coimtries. If an ade quate cession of territory should bo made by such u treaty, the United States should roloaso Mexi co from all hur liabilities, and assume tlioir pay ment to onr own citizens. If, instead of this, tlio United States were to consent to a treaty by which Mexico should a^uin engago to pay the heavy a* mount of imlobtuduuHH which a just indemnity to our government and. our citizens would impose on hur, it is notorious thut sho does not possess tha means to meet such an undertaking. From such a treaty no result could bo anticipated, but the same irritating disappointments which have heretofore atteudedtha violations ofsimilar treaty stipulations oil tho part of Moxico. Such a treaty would bo but a temporary cessutiou of hostili ties, without tlio restoration of tlio friendshio nnd good understanding which should characterize the future intercourse between the two countries. That Congress contemplated tiio acquisition of territorial indemnity wheii Unit body mado provi sion for the prosecution of tho war, is obvious.— Congress could not luvvo meant—when, in May, 1840, thoy appropriated ten millions of dollars, aud authorized the President to employ tho mi litia and naval und military forces of tho U nited Slates, and to accept tho services of fifty thous and. volunteers, to enable him to prosecute tlio wan and when, at tlioir last session, and after our army had iuvadod Mexico, they made additional appropriations and authorized tho raising of ud- ditiouul troops for tlio same, purpose—tlmt no in demnity was to be obtaiuod from Moxico at tho conclusion oftho war; nnd yotit wus certain that, if no Mexicuu territory wus acquired, no indem nity could be obtaiuod. It is further manifest that Congress contem plated territorial indemnity, from the fact tlmt, ut their last session, un act was passed, upon tlio Executive recommendation, appropriating three millions of dollars with that express object. This appropriation wus made “to enable tlie President to conclude a treaty of poaco, limits, and bounda ries with tho republic of Mexico, to he used by him iu the eveut that said treaty, when signed by the authorized agents of tho two governments, and duly rutified by Mexico, shall call for the ex penditure of tho sumo or any part thereof.”— Tho object of asking this appropriation was dis tinctly stated in tho sevoral messages on tho sub ject which I communicated to Congress. Simi lar appropriations mado iu 1803 and 1806, which wore referred to, wore intended to bo applied in part consideration for the cession of Louisiana uud the Florida?. Iu lilco manner it was antici pated that in settling tiio terms of a treaty of “limits and boundaries” with Mexico, a cession of territory estimated to be of greater value than tho umouut of our demands against her might he obtained; and that tiio prompt puymunt of this Hiun-t-m part consideration for tho territory co ded—on tho conclusion of a treaty, and its ratification on her part, might bo an inducement with her to mako such a cos.-hoii of territory as would be satisfactory to tho United States. And although tlio failure to concludesuch a treaty has rendered it unnecessary to use uny part oftho threo millions of dollars appropriated by that act, aud tlie entire sum remains in the treasury, it is still applicable to that object, should the contin gency occur making such application proper. Tho doctrine of no territory is the doc trine of no indemnity; aud if sanctioned, would boa public acknowledgement tlmt our country was wrong, und that the wur declared by Con gress with extraordinary unanimity, wus unjust, and idimtid bo abandoned; uuailmissiaii unfoun ded in fact, aud degrading to the national charac ter. /• The terms oftho treaty proposed hy tho United States were not only just to Mexico, but, consid ering tlie character und amount of our cluims, the unjustifiable aud uuprovoked commencement of hostilities by her, tlie expenses of the wur to which wo euve been subjected, uud the success which had attended our arms, were deemed to be of u most liberal character. The commissioner of the United States was au thorized to agree to tho establishment of tiio itin Grando us the boundary, from its entrance into the Gulf to its intersection with tho southern boundary ofNcw Mexico, in north latitude njjout thirty-two degrees, und to obtain a cession to the United States of the provinces of New Moxico and the California*, and the privilege of tlie right of way itoross tlie isthmus of Tolmuutepoc. The'! bouiuluiy of the ltio Grande, mul the cespiuii to the United-States of New Moxico and lUp, California, constituted an ultimatum which i turn, or which may lie* .... ... sitm ; that wo should press foi Mil ou commissioner yield. "’hat it uii; "luS . <y l» tlior prqvi pal towns and c held in otirtniHl under ho circumstances, ..iifest not onlr t ms, tlmt the Unlj take advautago jpon wresting f (eluding many of] . 'Inch wo hud conqnotod uuu „ occupation,' but wore williug to.conclude a trouty in a spirit of liberality, our commissioner was authorized to stipulate for the restoration to Mexico df ’all our othor conquests. As tlio territory to bo acquired by tho houndu* ry proposed might bo estimated to .bo of groutor value than,a fiiirequivalentTor oiirjust demands, irms.of, u.treaty proposed by $ho Moxi- enu commissioners word wholly inadmissible.— Thoy negotiated us if Mexico wore, tiio.victorioits and not the vatwmUUad' party. They must havo kiiovvu that their ultimatum could never be act ceptod. It required tl|o United States.td dis- inembor Texas, by surrendering to Mexico, thut part of tho torritpry’of that State lying between tho Nueces and the'Rio Grande, included within hor limits bv her luws wlion silo was an indopo ddnt Republic, aud when, she wus aunoxed to the United States aiid admitted by Congress us one of the Status of our .Union. It contained no provision for the payment by Mexico of tho just claims of our citizens. It required indemnity to Mexican citizens for. injuries thoy may linvo : sus tained by our troops in tho prosecution of tlio war. It dbmuuded the right fur Moxico to levy and collect tho Mexican tariff of duties on goods imported into hur ports wile in our military oc- ouputiouduriiig the wur, and the owners of which had paid to officers of thu United .States tho military contributions which had boon levied upon thorny and it offered to code to tho United States, for a pecuniary consideration, tlmt part of Upper California lying north of latitudo thirty suvou do- gruuN. Such wqro tiio onroasonatno terms pro posed by tho Mexican commissioners. Tho cession to the United States by Mexico, oftho provinces of Now Moxico and the Califor nios. as propqsud hy the commissioner of tho U’- nitud States, it wus believed, would bo more in accordance .with the convenience und interests of both natious, than any other cession of territory whioh it wus probable Moxico could be iuducud to niuku. It is manifest to nil who havo observed tho ac tual condition of the Mexican government, for some yonrs past, aud ut present, that if thoso pro vince's should be retained by her, sho could not long continue to hold nnd govern them. Moxico is too feeble a powor to govorn those provinces, lying as they do at a distance of more than a thousand miles from hor capital, and, if attempt- od to be retained by hor, they would constitute but for a short timo, ovon nominally, a part of her dominions. This would he especially tho enso with Upper California. Tho sagacity of powerful Ettropuau nations has long since directed their attention to tlio commercial importance of tlmt province, uud there can bo little doubt that tho moment tho United States shall relinquish their present occu pation of it. and tiieir claim to it as indemnity, un effort would bo made by some foreign I'ower to Possess it, either by conquest or by purchase.— If no foreign government slioflld acquire it iu either of thoso modus, an independent re vain, tionary government would probably bo establish ed by the inhabitants, and such foreigners as may remain in or remove to the country, as soou us it shall bo known tlmt the United States Imvu aban doned it. Such a government would bo too fee ble) long to maintain its separate independent ex istence, and would finally become tuiuoxed to, or bo a dependent colony of, some more powerful State. Should any foreign government attempt to posses? it as a colony,or otherwise to incorporate it with itself, the priuciplo avowed by President Monroe in 1824,nud reaffirmed iu my first mimiui message, tlmt no foreign Powor shall,-with our consent, bo permitted to plant or establish any new colony or dominion on uny part of tlio North American conliuont, must be maintained. Iu maintaining this principle, und in resisting Us in vasion by any foreign Power,wo might be involv ed in other wars more oxpousivo and more diffi cult than that iu which wo are now engaged. ' The provinces ofNuw Moxico and tho Ontt- furnitis are contiguous to tlio territories of tlio United States, nnu if brought under thu govern ment of onr laws, their resources—mineral, agri cultural, tnuimfucturiiig, uud commercial—would soon bo developed. Upper California is bounded on tlio north by our Oregon possessions; aud if held by tlio Uni ted States, would soon bo settled by a hardy, ou- terprising, nnd intelligent portion of our popula tion. The bay of Sun Fruucisao, nnd other har bors along tho Californian coast, would atlord shelter Jbr our liuvy, for our numerous wlinlo ships, uud othor merchant vessels employed in tho Pacific ocean, and would iu a short period become tlio marts of «n oxtensivo and profitable commerce with China, und oilier countries of tiio East. These advantages, in which the whole commer cial world would participate, would at once bo secured to tlio United States by tho cession of this territory; whilo it is ccztain that us long as it rouminsa part of the Mexican dominions, thoy can bo eujnyed noithor by Mexico horsolf nor by auy other nution. New Moxico is a frontier province, nud lm« never boon of any considerable vulno to Mexico. From its locality, it is naturally connected with our western settlemeius. The territorial limits of the State ol'Toxas, too, as defined by her laws, be fore her admission into onr Union, embrace all that portion of New Moxico lying east of tho ltio Grande, while Mexico still claims to hold this ter ritory as a part of her dominions. The adjust ment of this question of boundary is important.' There is unother consideration which induced the bolieftliat tho Mexican government might oven desire to placo this provinco under the protection of tho government oftho United States. Numer ous bunds of fierce aud warlike savages wander over it, and upon its borders. Moxico has been, und must coutiuuo to bo too feoblo to restrain them from committing depredations, robberies uud murders, not only upou tlio inhabitant? of Now Moxico itself, but upon thoso of tiio other uorlhcrn States of Moxico. It would bo u bless ing to all these northern States to have tlioir citi- zeiw protected against them by tho power of tlio United States. At this moment, many Mexicans, principally females uud children, are in captivity among them. IfNew Moxico were held undgov- erned by tho United States, we could effectually prevent these tribes from committing such out rages, und compel them to ruloase thoso captives, und restore thorn to their families and friends. In proposing to acquire Now Mexico and tho Californios, it was known that but an inconsidera ble portion of the Mexicuu poopio would bo trans ferred with thorn, the couutry embraced within those provinces being chiefly an uninhabited re gion. Thoso wore tlio loading considerations which induced mo to authorize tho terms of poaco which wore proposed to Mexico. They were re jected ; und, negotiations being ut an end, hostili- tioswero renewed. An assault was made by our gallant army upou tho strongly-fortified places near tho gates of the city of Mexico, and upon thu city itself; uud after several days of severe conflict, tho Mexicuu forces, vastly superior in number to our own, were driven from tho city, and it was occupied hy our troops. , Immediately after information was recoivod of the unfavorable result of the negotiations, believ ing tlmt his continued presence with the army could bo productive of no good. I determined to recall our commissioner. A despatch to this effect wus transmitted to him on the sixth of October hist. Tho Mexican government will be informed ofhis recall; and that, in the existing stole of things, 1 shall not doom it proper to make uny further o- vertures ofpuuce, but shall bo ut nil times ready to receive und consider any proposals which may ho mado hy Mexico. . Since tho liberal proposition of the United Steles was authorized to ho made in April last, largo expenditures have been incurred, aud thu precious blood of many of our patriotic follow- citizens lias been shed in tho prosecution oftho war. This consideration, and tho obstinate per severance of Moxico in protracting the war,must influence tho terms of-peaco winch it may be doomed proper hereafter to accept. Our arras having been every where victorious, having subjected to our military occupation a largo portion of tiio enemy’s country, including his capital, and negotiations for pease having failed, tiio importnnt questions arise, In what manner the war ought to bo prosocuted J und what should bo our future policy ? 1 cannot doubt thut wo should secure amhreudor'available (be conquests which wo have already -made; and that, with this view,-we should hold and occupy, by our naval and military forces, all tlie ports, towns, cities, uud provinces now in our occupn- r hereafter fa uto our uur possos- OI!l*4 , - 11II..--TU MIUIIIU iui CM44* -HIT Ulllltliry operations] and.levy such niilit y\contributions ou the enemy as may, a? fur as i icucable, defray Itcs of the war. , . . font of M ico acceded - td Ibornl torn proposed, that rould hav luuiu tirelcrred. Icclincd to do is, and failed to rin^wltichcoii bo accepted by --io United States, tho national 1 nor, no low than Ule public interests, requires th tho wur should be prosecuted with Increased o irgy and power 'until a just and satisfiiotory/jioi n can bo obtain ed., In tlio moan time, ns Aicxfco refuses all in demnity,wo shouldkdrij/t fneMuras to indemnify d . wolves, bypnprqijriidmg pjWnnently tt. ppr- tioil of hoi-territory.7 Eurly af r the commence* inant of tlio war, Now Moxio atld tho Califor nia? .wore-taken possession V Jiy our forces. Our military und niVal cdmmmders were ordor- ad to.cauquur aud hold them, ubjoct to bo dis posed of by treaty of pejico.//'*• Thoso provinco* are how itj ouy undisputed oc cupation, and have boon so fenpnuy mouths; all resistance on the part of Mexico having caused within their limits. I am satisfied tlmt they should novor bo sufrondoroil to *Moxlco. Should Congress concur with tno in this opinion, aud that thoy should ho retimed hy tiio Unitiid States as indemnity,I cun pofpuivo no good-roaiqu why tlio civil jurisdiction aid laws of the l/uited Slates should not ut oncelo oxtendud over them. To wqit.for a treaty o^peaco, such us wo are willing to umko, by whichpur relations towards thorn would not bo clmifood, cannot bo good policy, whilst our own intotest, and that of tho poopio in* habiting thorn, reqiire tlmt a stable, ’responsible, luid free gqyermeui under our authority should, us soon as possihl^ bo established ovor them. Should Congress, therefore, determine to hold thbse provinces permanently, und that they ahull hereafter bo considered ns constituent parts of our couutry, tlio curly establishment of territorial governments over them wU\ bn important for tho more porfect protection of persons aud propnty; aud L rccommoud timt such tbrrlrarl.il govern; incuts no osiamisliod. It will promote peace nnd tranquility among the inhabitant*, by allaying all apprehension tlmt they may still entertain of being jiguiu subjected to tiio jurisdiction of Mexico. I invite, the early and favorable' consideration of Congress to this important subject. Besides Now Mexico nnd tho Californios, there are other Mexican provinces which havo been re duced to our possession hy conquest. Those other Mexican provinces are now governed by our military and naval coinmjnders, umlor tho general authority which is conferred upon a con. quoror hy tlio laws of war. Trey should contin ue to ho field its u moans of coercing Mexico to ac cede to just terms of peace. Cjvil ns well ns mil itary officers are required to conduct such n gov ernment. Adequate compensation to.ho drawn from contributions levied on tlieenmuy should ho fixed by law for such officers as may ho thus ompioyml. What furtliar provision limy become necessary, nud wlmt final disposition it may bo proper to niuko of them, mnst depend on tlie fu ture progress of tho war, and the coursu which Mexico may think proper hercuflor to pursito. With tho views I entertain, [ cannot favor the policy which him been suggested; either to with draw our army altogether, or to retire to a de signated line aud simply hold and defend it. .To withdraw onr army altogether from the conquests they liuvu mado by deed? of mipurntcilcd bra very, aud at tlio oxpeuse of so much blood aud treasure,ilia just war on our part, and ouo which, by tlio act oftho enemy, wo could not honora bly havo avoided, would ho to degrade the nation iu its own estimation jtnd in that of the world. To retire to a lino, and simply hold and defend it, would not terminate he war. Ou tho contra ry,.it would oneonrago Mexico to persevere, ami tend to protract it indefinitely. It is not to bo oxpucted thut Mexico, after refusing to establish such a lino as a permanent boundary, when our victorious many are in possession of her capital, nnd inthohonrtof her country, would permit us to hold it without resirftaueo. That she would continue the wur, nnd in tho most harassing aud annoying forms, there enu bo no doubt. A border warfare of tlio most savage character, ox- tending overu long lino, would bo unceasingly waged. It would romiiro a large army to bo kept constantly iu the field, stationed nt posts nml garrisuusaluug such a fine to protect uud defend it. Tiio ououiy, rulioved from tlio pressure of our arms on iiis coasts nnd in tlio populous parts of tho interior, would direct his attention to this fine, und seluctmg un isolated post for attack, would concentrate his furcus niton it. This would bo a condition of affairs Which tiio Mexicans,' pur suing tlioir favorite system of guerilla warfare, would probably prefer to any other. Were we to ussuuio a defensive uUiltufu on such a line, all tho advantages of snob a state of war would bo cm the side of tho enomy. We could lovyno contributions upon him, or in any other way mako him fee! tho pressure of the war, hut must remain inactive anti await his approach, beiug in constant uncertainty nt wlmt point on t o line, or at wlmt timo, ho might make an assault. Ho may assemble and organize un overwhelm ing force in tho interior, on his own side of the line,arid, couceuliug his purpose, mako a sudden ussuult upon some one ofonrpostsso distant from any othor us to prevent the possibility of timely succor or reinforcements; unci in this way our gal lant army would be exposed to the danger oflio- ing-cut oft* in detail; or if, by their unequalled bravery und prowess everywhere exhibited during this wur, they should repulse tho enemy, their numbers stationed ut any ono post may bo too small to pursue hint. If tlie enemy lie repulsed in one attack, ho would have nothing to do Imt to retreat to hisowu side ui'theline, and, beiug in no fear cf a pursuing army, may reinforce himself ut leisure, lor another attack on tho same or some other pent. Ho limy, too, cross tiio lino between our posts, make rapid incursion? into tlio country which we hold, murder tlio inhabitants, commit depredations on them, and then retreat to the in terior before a sufficient force ctin ho concentrated to pursue him. Bitch would probably he the harassing character of a mero-defensive war on our part. If our forces, when attacked, or threat- Gucci with attack, be permitted to cross tho lino, drive lmck the enemy, uud conquer him, this would ho again to sdvatlo the enemy’s country, af ter having lost all the advantages oftho conquests we have already mado, by having voluntarily abandoned them. To hold such a lino success fully und in security, it is llir from being certain that it would not require as largo an army as would he necessary to hold all the conquests wo havo al ready made, and to coutimieitlioprosecution of tiio war in tho heart of tho enemy's country. It is ulso fur from being certain that tlio expenses of tlio war would bo diminished hy such u policy. I am persuaded thut the best means of vindica ting tho nntiounl honor nud interest, aud of bring ing the wur to au houorablo close, will be ta pro secute it with increased energy, and powor in tho vital part? of tho enemy’s country. In my. nnuual message to Congress of Decem ber last, I declared tlmt “tlio wur has not boon waged with u view to conquest; but having been commenced by Mexico, it bn? been carried into the enemy’s country, nml will bo vigorously pros ecuted there with a view to obtain nil honorable peace, nnd thereby secure amnio indemnity for thu expenses oftho war, ns well us to onr much injured citizens, who hold lurgu pecuniary de mands against Aloxico.” Such, iu my judgment, continues to be ourtruo policy—indeed, tlie only policy which will probably secure a permanent peace. It Im? never been contemplated by me. ns an object of tho war, to mako a permanent conquest oftho republic of Mexico, or to annihilate her separate existence ns an independent nation.-? On tlio contrary, it has over been my desire that sho should maintain her nationality, nml, under a good government adapted to her condition,« bo a Iroo, independent, nnd prosperous republic.— The United States wore tiioffirst among the nations to recoguiso her independence, and have always desired to bo oii terms of amity aud good neigh borhood with her. This she would not suffer.—; By hor own conduct wo have boon compelled to engage iu the present war. In its prosecution, we seek not liei; overthrow as a nation; but, in Adjudicating our Rational honor, avu seek to ob tain redress for tho wrongs sho has donous, and indemnity for onr just domain!? against her. Wo dumutul an houorablo peace, and that poaco must bring with it indemnity for the past, nml security for tho future. Hitharto AIcxico has refused all nccommocntiou by which* aty'ch a peace could bo obtained. Whilst onr armies havo advanced from victory to victory, from tho commencement of tiio war, it has always beon with the ojive-brunch of peaco in their hands; arid it has been in tho powor of Moxico, at ovory step, to arrest hostilities 'by accepting it. One great obstaclo to tho attainment of pence has, undoubtedly, arisen from tiio fact,-that Mex ico bag been so long held iu subjection by quo fitciion dr military usurper alter unother; and such has boon tho condition- of insecurity in which their successive governments ha\'e boon placed, that each has beou deterred from making ti rival faction . VenuhmtHerrera’sadministratioiUniel^fbr being disposed oven to listen to tho overtures of tho United States, to prevent;tho war, as U fully confirmed by ; an official correspoiidonci) which ok place In the month or August last, botwoon iu mul his gavorjinumt, a copy of which is h&rowjth communicutcd. “For this causa ulono, tiio revolution which displaced hint from powor wus sot on foot” by General Pnrcdos. Such may bo tho condition of insecurity of tiio present govorntuent. There enn bo no doubt that tho poaooqblo and well-disposed inhabitants of Alcxico arc convinced that it is tlie trim interest of their country to con clude un honorable peaco with tho United States; but fho apprehension of bocojuiug tho victims of some military' faction or usurper may have pro- vonted tiicm from manifesting their feelings by uny. public act. Tho removal of any such ap prehension would probably cause thorn to spook their sontimonta frooly, and Jo udopt tlio mea sures uocessaty for jho restoration of poaco.— With a people distracted and divided by’con tending factions, und a government subject to constant changes, by successive revolutions, tlio continued successes of our arms' may fail to se cure u satisfactory peace. In such event, it may become propor for our cnnimaudinggeiio- ..... t.... '’aid to rals in tho field to givo encouragement "and as surances of protection to tho friends of poaco in Mexico in tlio eHtnblishmout nml muintoiumco of a free republican government of their own choice, able and Avilling to coucludo a poaco which woitld bo just to ffioin, and secure to us tiio indem nity wo demand. This may bocome tho only mode of obtaining such n peace. Should such bo tho result, tho war which Mexico has forced upon us would thus bo convnrtcd into un endur ing blessing to herself. Alter fiudiiig hor torn und distracted by factions, and ruled ny military usurpers, wo should thou leave hor with a repub lican government iu tho onjoyincut of real inde pendence, nnd domestic peace and prosperity, performing all her relative duties in the groat riimlly of nations, nnd promoting her own Imp- pinoss by wise laws and their faithful execution. If, after affording tills encouragement aud pro tection, nml after all tho persevering nud siucoro efforts avo havo mado, from tho moment Aloxico commenced tlio war, und prior to tlmt time, to adjust our differences with her, wo slmll ultimate ly fail, then avo shall have exhausted all honora ble means in pursuit of poaco, and toast con tinue to occupy her country with, our troops, taking tlio full measure of indemnity into' onr own Imnds, and must enforce the terms which our honor demands. To act otherwise, iu tho existing state of tilings ill Aloxico, aud to witiulruAv our army without a ponce, would not only leave nil tlio wrongs of which wo complain unredressed,Imt would be tho signal for now nnd lierco civil disseusious and new revolution?—all aliko hostile to peaceful relations with tlio United States. Besides, there is danger, if our troops were withdrawn before a poaco was concluded, that the Mexican people, wearied with successive rev olutions, uml deprived of protection for tlioir persons uud property, might at length bo inclined to yield to foreign lutluences, und to cust them selves into the arms of somo European monaruli for protection from tlio anarchy aud suffering which would uusuo. This, for our own safety, nnd in pursuance of onr established policy, wo should be compelled to resist. Wo could never consent tlmt Mexico should bo thus converted into a monarchy govomed by a foreign prince. a Mexico is our nour neighbor, and her huiiuda- ries are coterminous with our own, through tho Avholo extent across tlio North American con tinent, from ocean to ocean. Both politically uud commercially, avo havo tho deepest interest in horregoneratain ami prosperity. Indeed, it is impossible tlmt, Avitli any just regard to our own safety, wo cau over become uulilVurout to her Into. It may bo thut tiio Mexican government nud poopio have misconstrued or mismmloratoud onr forbearance, nud our objects, iu desiring to com chute an aiuicubto adjustment of tho existing dif ferences bctAveon tlie two countries. Thoy may have supposed tlmt avo avoiiIU submit to terms degrading to tlio nation; or they may havo drawn false inferences from tho supposed division ofo- piiiion iu tho United State? on tho subject oftho Avur, and may havo calculated to gain much by protracting it; uud, indeed, tlmt avo might ulti mately abandon it altogether,Avithout insisting on any indemnity, territorial or otherwise. What ever may bo the false impressions under Avhich they lmvo acted, tho adoption uml prosecution of tho energetic policy proposed must soon unde ceive them. Iu the future prosecution of tho Avar, the enemy must ho mado to fool its pressure more than they have heretofore done. At it? commencement, it avus deemed proper to conduct it in a spirit offor- boaranco and lihuraiity. With this end in vioAV, enrly measures wore adopted to couciii ate, ns fur as a state of Avar would permit, the mass of theMcxicun population; to convince them that tlio Avar avus wagon not against tho peaceful iuhuhitums of Aloxico, but uguiust tlioir fiiitiitess government, Avhich hud commenced hostilities; to remove from tiieir minds the false impressions Avhich their designing aud interested rulers had artfully attempted to muko, thut tho Avar on our pnrt avus one of conquest; tlmt it was a Avar uguiust tiieir religion uud their churches, Avhich were to bo desecrated und overthrown; and that their rights of person nml private property Avotild bo violated. To remove these false impressions, our com manders in tho Hold Avere directed scrupulously to respect their religion, tlioir churches, nnd their church property, Avhich Avero in no manner to bo violated; they Avero directed also to respect tlio rights of persons aud property ofalUvlio should not take up arms against us. Assurances to this effect Avero given to tho Mexi can people hy Major General Taylor, in a pro clamation issued iu pursuance of instructions from the Secretary of War, in the month of Juno, 1846, and again by Major General Scott, avIio acted up on his own convictions oftho propriety of issuing it in a proclamation of tho eleventh of May, 1847. In this spirit of liberality and conciliation, and Avitli a view to prevent the body of tlio Mexican population from taking up arms agaiust us, avos tlio Avnr conducted on our part. Provisions and othor supplies furnished to our nrmy by Alexican cUtzens wore paid for at fair und liberal prices agreed upon by tho parties. After tho lapse of n few months, it became appnreutjtimt these as surances, uml this mild treutmeut, had failed to pvo- dneo tlie desired oficct upou tho Alexican popula tion. White the Avar lmd been conducted on our part according to the most Immune and liberal principles observed by ch'ilized nations, it avus waged in a far different spirit on tho part of Moxi co. Not appreciating our forbearance, tho Mexi can people generally became-hostile to the United Slates, and uvniled themselves ofevery opportuni ty to commit tlio most snA'nge excesses upon our troops. Large nmnbors of tlio population took up arms, und, engaging in guerilla Avnrfiirq, robbed mul murdered in tho most cruel manner individual soldiers, or k smnll parties, Avliom accident or oilier causes hud separated from tho main body of our nrmy; bands of gucrrilloros aud robbers infested tho roads, harassed our trains, and, ivheuevor it Avna in their power, cut off our supplies. Tlio Alexicnns having thus sIioavij themselves to bo wholly incapable of appreciating our forbear- ancennd liberality,it avos deemed proper to change thommmer of conducting tiio Avar, hy making them feel its pressure uocordiug to tlie ( usages ob served under similar circumstanced by ull other civilized nations. Accordingly, as ogrly ns the tAventy-seeond of September, 184J5, instructions Avero giveu by tho Secretary of Wur to Muj. Gen. Taylor to “ draw Supplies” for our nrmy “ from the enemy, with out paying for them, und to require contributions for its support,” if in tlmt Avay lie was satisfied ho could “ get abundant supplied for his forces.” In directing the execution of thoso instructions, much aa'us necessarily left to thu discretion of tlio conuuauding officer, who was host acquainted Avitli tlio circumstances hy which lie Avns sur rounded, tho Avnuts of tho nrmy, nud tiio practi cability of enforcing tho measure, Gen. Taylor, on tho tiventy-sixth of October, 1846, replied, from Aloutercy, that “it Avouldhuvo been impossible hitherto, and is so now, to sus tain tho nrmy to uny extent by forced contribu tions of money or supplies.” For tho rensous assigned by him, lie did not adopt tlio policy of his instructions, but declared his readiness to do ro “ should tho army, iu its future operations, reach n portion, of^10 country which may be nmdo to supply the troops with advantage.” Ho cautinuod to uny for tho articles of supply which were drawn from tiio onemy’s country. Similar instructions were issued to Major Gon- erul Scott ou tho third of April, 1847, who re plied, from Jalapa, on the twentieth of Alay, 1847, that, if it bo expected tlmt u the army is to sup port itself by forced contributions levied upon tiio country, avo may ruin ayd exasperate the in habitants, and starve btirsolves.” The same dis cretion AvnB given to him that had been to Gen. Taylor iu this respect. Gen. Scott, for tho ‘rea sons assigned by him, also contintiod to pay for the articles of supply dniAvn.from tiio enemy. •After the army had l most Avoiflthy portion of j that the obstacles which’ vonted.it (would not- be t ticabie the levy of forced port; and on tiio first of S' tho sixth of October, 1847; in despatches addressed by : tlfe Secretary of War to General Sctht, and his attention avus again culled to the iinpoitatico of making the enemy bear the burdens oftheVvar by requiring thorn to furnish tiio moans of supporting onr army; nnd hO'was directed to adopt this policy, unlos*, by' doing so, there wus danger of depriving the army oftho uocessery supplies. Copies of those dos* patches Avere forwarded to Gouerai Taylor for lus government. On thp thirty-first of March last, I caused an order to bo issued to mir military and naval couunaudors.to levy and collect a military con tribution, upon all vessels and liierelmndiso which might enter any of tho ports of Aluxico in our military occupation, and to apply such contributions towards defraying tiio expenses of tho Avar. By virtuo of the right of conquest nnd the laws of Avar,tlio conqueror,consulting his oAvn safety or convenience, may either exclude for eign commerce altogether from all such ports, or pomitit upon such term? uud conditions os he may prescribe. Boforo tho principal ports of Mexico Avoro blockaded hy our Navy, tho tho rovonuo derived from impost duties, under tho Iuavs of Mexico avus paid into tiio Alexican treasury. After those porta hud fulleu into our military possession, tiio blockade avhs raised, und commorco Avitli thorn, permitted upou proscribed terms aud conditions. Thoy Avere opened to tho trade of ull nations upon tlio payment of duties more moderate iu tiieir amount than those which had boon previously levied by Mexico; uud the rovuuuo Avhich avus formerly paid into tlie Alexican treasury, Avns directed to bo collect ed by our military a nil. naval officers, and applied to the use of our army and navy. Cure avus ta ken tlmt tlio officers, soldiers and sailors of our army and navy, should bo exempted from the operations, of tlio order; aud as tho mardiamhsu imported upon Avhich ffio ordor operated must ho consumed by Mexican citizens, the contribu tions exacted Avoro, iu effect, tiio seizure of the public rovoiuios of Moxico, aud tho application of them to our uavu use. Iu directing this mea sure,'tiio object avos to compel tho enemy to contribute, us far as practicable, towards tho ex penses of the Avar. For tlio amount of contributions wliioli lmvo been loviod in tuts form, I rufrr you to tU« «cm\m;mnyuu* report* of tiio occi clary of War and of tlio ftuerntury ofllm Nn-*\ bv which it appears Hint n sum axcoodiny hull' a million of dollars Into Jm.ni cnllnctud. This amount would undoubtedly tmvn been much larger, (nil for tlio dilllrully of keepiii# open communications be tween tlm const nnd interior, so us to nimble the owner* of tlio inercliuiidist! imported, to trun-porl utul vend Uto tha iulmbitaiits of tlm country. 11 i i confidently expected that this diflleally will, to a ereut extent, Im soon removed by our iucroasnil forces whioh have been neiit to the Held. Measures lmvo recently born adopted by which Die In* tnrilul iu* well n* tlm external revenues of Mexico, in all places iu our military occupation, will lie soi/.ed uud ap propriated to (he u*e of our nrmy mill imvy. 'I l«« policy of lovyini; upon I lie enemy contribution* iu every form, eomiisteutly with the law* of nations, which it •uny •»' practicable for mir military commanders to ndopt, should, In my Judgment, he rigidly enforced, uud ordor* to this effect havo accordingly been given, riy such a policy, ut tlio sumo lime that our own treasury will Im relieved from a heavy drain, tho Mexicuu people will Im mado to feel tha burduas of tlm war, uml, commitiii# their own in terests, may Im induced the more readily to require their ruler* to nucmlo to a just pence. A-ttar the adjournment of thu hwt »r*«h>n of Comnena, events transpired ill thu prosecution of thu wur which, iu my jilil(fiiiiiiit. raipiirod u grantor imtubor of troops iu tho Held than had hoon anticipated. Tho *trctii;tli oftho nrmy hundred nml’slxty-Tour dif a ; * ,,„,i -^7 wde.orpublieUuwt*, two minion ftwlSdii'*"'/* *«■ ol ? ht thousand three hundred nuVl ifflJi 1 -^ I"', '"H twenty cento s aud from incidents affi J cm, mm iiuiuirod thousand five huudr , !! , l,iu "' 0 "’“'« Ihrt and flfiy ono cents. Tlm lJ{ this amount was received, omliMceil n„A our,ll 1 lri "? »kie] operation oftho tariff uct of 18-ld, nud 8 »«»« W " Ut '* '""ter wh.ch tho IdrifT net P r IMG waiTiu taito Vv". U i" lw ! 1 "'' months uuder tho net or 181:2, tlm ainouniV., U ! ,ri, !*. ,lm 1 tom*Wastovon million olght hundred Lyf V f dlrr0,n *' •and throe hundred aud .!».lolln„ «”| ^^‘»» Ha ring the seven.rnoptha under the net of eolved was fifteen million n| M hundreds.ftl*?."" 1 ' 1 fivoliundrodniid fifty savou dollars and s v“ u Tho non ruvuimo from ciutoSaffiSWl roll- ondmg on tho llrat urDnc:ciul,"r, gin f. ! 1 ' HS JJ5 r u,lr O.o opurnltcin of l,rS“" mivonty-ono tlionsnm! fin,, hundred ii dullnrn und ton cental und tho nett rev "i .. f cutttuuui durmn tho yet c„din B 0 n iffiff 1 December, l8lV, bciig thu find Z r I'P t operation of tho tarilf uct of ffffl J" ihtriy-ono million five hundred Uto,“mid being tiu incrotwe ofrcvctmo for the v ,771 tho htnlhcl Of 184(1, ofntoro than eigh „S3 five hundred lliotianto tI.atof3.Ll. your under tho tariff of1842. Iasl The expenditures tinder tho fiscal year on the thirtieth of Juno last, were fifty-niim , lion four hundred nnd fifty-ono tho,,,,, j "1 linndred rn.il Hovonty-scvcn dtillurs trad j cents; nl winch throe million fi vo jJj'H twcnty-tivo thousand and oightv-two dollar, tlnrly-scvcn cents «•»« on nccount of pnvmmul priuciplo anil interest oftho public dubl, U 1 treasury notes redeemed and not funded Iu cxpendiutre., eschwivo or pnyment or t„i|J' debt, rvero fifiy-tivo million nmn Itiitulml twoiity-nine thmtreuil uud uiuoty-tlvo doll,in twenty-eight emit,. ” It in Ofltiiunted that that the receipts ittla id trensury for thu finalI year Bjd|ljg on tlio tliinietl J ,| e '"“''"'"'B tho hidanco in troE on tlm first ol July last, will a nut to l.irtv-t.re] nulltnn eight hundred and olgltty-iix tl,,,;,"'* 1 If" hundred nnd forty-livo dulbirs a„d 253 ee,us„l wluelt thirty-tme million, it lie.finSL will ho derived from customs i Ihree nfilU® , hundred thou,aud from tlm sale of tlm ititidn; Tour huudred thonsnud front |,£3 sources, including sales Hindu by tlm golicijl lltolretuntryt and six million two hundred J otg Ily-fivo tlioiisaud two bmidred uud niiiitlv-f,,, dollars uud hfiy-Un, cunts ftm,, |,mn. nhcailv ■ 1 fit'■fitted hy law, whioh, together with tbs boL,l in the treasury on Uto first of July Ian, sum eslimotetl. 1 Tho cxpomlitiiro, for the same period, ir n t«, "’lilt Aloxico shall not bo ctmchnlml, nnd ilio a r my shall bo incrouscil as is prujiuse.l.willni including tho ltooossary puymouts on noooiiiiii.fi principal nml intorost of tin* niibliu iloln mul | rM *. ury notes, to fifty-oight million six huiiilrdnM hftoon tlioiisaud six hundred uml sixiy tlollunnul seven cents. “ On the first of tho present month, tlio niifoum of the public debt actually iticurml, indinlin. treasury notes, avus forty-livo uiUlum six \mw\u\ uml lilly-nino thousand s x hiiiiihetl anil iillv-uiH dollars aud forty cunts. The public debt .in,.,., the fourth of March, 1845, including tronsun notes, was sovuntceu million seven hiimln d mi eighty-eight thousand seven hundred ami uinn,. nine Utflhirs and sixty-two cents; nud coiiscimcniL the addiliou uiude to the puldie debt siunii iki time is twonty-seven million eight lituulred aaj seventy thousand eight huudred uud fifty-ninetl4 lnrs nud suveiity-uiglitceiih'. Oftho loan of twenty-three millions, mitliorizcj by tho act oftho twanty-eighth of Jaimnry, ltd*, the sum of fivo millions avus paid out to tlm pub! lie creditors, or exchanged nt par for specie; the reiimining eighteen millions wusolfereil lor*|H!i‘s to the highest bidder uothelmv par, hy nu mlvi-t. tisement. issued hy tho Beeretary of tlui Treiwun, utul published from the ninth of February unlil the tenth of April, .1817, when it aviw awarded in the several highest bidders, at premiums vary tug ftmn one-eighlliofoue pereeul. to two percent, ubiue par. The prumiuiii lias liiam paid into tlm tna*- ury, nnd thu sums awarded deposited in spent*m ' the treasury as lust as it avus required by lint wimu j >f the government. To meet tho expenditures for tiio rouiuiinW oftho present und for the next fiscal year, c-nduig ou the thirtieth of June, 184'.), u tiirthcr loan,in aid oftho ordinary rcA'onues of tlie govoriiimaii. will hu necessary. Retaining a sutlieieut surjiliu iu the treasury, the loan required for the remain der of the present fiscal year will ho iilimil eigh teen million five hundred thousand dollar?. If tho duty ou tea and cufl'eu he imposed, uud the graduation oftho /nice ul'tho puhho lauds slmll he mado at au unity period of your session, as recom mended, llw lean for tiio present fiHCul year may hu reduced to seventeen millions of dollars. Tlio loan may bo further reduced by Avimiovcruuioiiiit of oxpt'iuVttnrea can be saved bv military con tributions collected iu Aloxico. Tlm most rigor ous measures for tlio augmuiilatioii oftiiu.se con tribution? lmvo been directed, nnd u very consid erable sum is expected from that source. It? a- mount cannot, however, be calculated will]any certainty. It is recommended tlmt the loan to Im made be authorized upon tlm same tornw, mul for the same time, a? tlmt Avhich avhs nulhori/.i*d under the provisions of the uct of tlie twenty- oigih of January, 1847. Should tlm war with Mexico, ho continued until tho thirtieth of June, 184!). it is estimated lint a further loan of twenty million live hundred thousand dollar? will be required for tlm fiscal year ending on tlmt day, in case no duty bo im posed on ten nnd coffuuguitl the public lauds lie nut reduced nnd graduated in price; and lie military contributions slmll lie collected in Moxico. Iftho duty on ten nud cofi’ee ho imposed, ami tjm lands liu reduced und graduated iu price,ns proposed,^the loan limy ho retluced to seventeen million? m dollars, and will ho subject to ho still further reduced hy the nmouqt of the military <•««• tritmtioiis which may ho collected in Aloxico. It is not proposed, htiAVovor, nt present, to ask Con gress fur authority to negotiate this loan for tw next fiscal year, us it is hoped that the loan wk™ for the remainder oftho present fiscal year, ju«« by military contributionsAvhieh maybe collected iu Mexico, may ho sufficient. If, contrary to expectation, there should ho a necessity tor it.Uie fact will ho comimuiicuted to Congress in tiine for tlioir ucliou during the present session. In ||# event will n sum exceedin'* six million? of tluuars of this amount be needed before the meeting thoVossiou of Congress iu December, 1848. , The net of the thirtieth of July, 1810 “ rediwroj the duties on imports,” has been ill force on™ tlie first of December last; and I am gratified» state, that all tho beneficial effects Avhich AAfit anticipated from it? operation Imre been f»Hj realized. Thu public revenue derived fr«» customs during thu year’ ending on tlio first December, 1847, exceeds, hy moro tiiati eigw milUotts of dollars tho amount received iu « preceding year under tho oporatioiw ol w net of 1842, Avhich avos superseded und repeal'd by it- Its effects are visible iu tim grout aiw almost unexampled prosperity avIiicIi prevail? every branch of business. Wiiilsl tho repeal of tho prohibitory mul re* Ktrictivu ililtiiw of Mio mil nl J*l-f. nnd tlm «"“• ttttion in tliuir [.liter uf ren»oimb o roroiiin n» Irvieil on iirlidm iinpmtril nccurtlmg to Utott *• inn! vnlnn, linn liicnnwcd tlm rpvuuun mid »(• montrdmir liireign train, nil tlm grenl"" '# of tile country Imvobcou advanced uml 1‘W ""tIw gri-nt nml imiiorlmit Inlorctn of ngrir* lure, wliirli Im*I Imon nol only loo nnwli ""6 “'" but actually taxed under Uio iirolt-mivo 1>oIk)»' the benefit afnUter tntorenu, havo boon rtl ■ oftlui burden, whip)* Hint pf Imy imjnMOd ™ nnd our furmore mul lilmiton, “'iLj mul liberal cnwmoreinl pohoy, ■tre.liuillng non «g prulltitlilo hmrltol. abroad for diotr .nifetn 1 Onr commorco t-> miiiilly inoroa«ing, nod• b” tending inbro widely Iho oirclo. o nitfiinti oxchtutgr.. Groutbn, boon tlio incroM ofoW hnpoft. during Urn iitwl year, onr ox inertio yroducU.old iu foreign uinrltou halt '“our”navigating i'ntoro.l b tllta* PWjj ous. Tlm number ol* vo.iml, limit m tlm hi Status has boon greater Uial|dlinngn|iy prooiomi noHb'd of.Sinnl Tonstli. Lnrgo probtobivo b» derived by dipso trim bare ooiutruotod u by tlto.o wlio lmvo huvlgalod thorn. ^ ratio ofincroimo in tho munlior ol onrm , vorecl. he |,rogre.»ivo, nml ho iw groat lor lh turn a, during the past year, tho nmo lit l ...^ lion ourtbunngo uud uiartno rgor than that of any othor nation in die WOW Whibtdio interests ofngneuttiiro,uf t,onunoic, nml of navigation havo boon onlargod tu ' I orated, it i« highly grot lying to oh.orvo dmt.py monnliioturo. are ol.o in a pro.nprpu. coadm™ Nonoofthoruinou.oirect.upontlu.llitore.l'Wl'aa tvoro upprehonded by eome, a. tho fPfV., j operation, of the rovonuo »y.tem gfHW tho act oflHIt*, have boon kxpononood. On JJ contrary, tho number of ninniifuotono., n to amount of capital invented an and rapidlyim remmig, nflordtng gral'V'"* f'J° that Amorioan untcrprtao aud .lull outploj" 1 thi. branch of UfflVcwttc iinlu.lry, with no , aVautago. thmilho.o fiiirly and incidentally ... nntlehmtoil. Tlm*trrm;tli oftho nrmy avos nrcorilbiffly iucrimscil liy “uci:<'|itimt" tlm sorviiins of nil tlm voidutoor fiirciiH nntliuri/.ml liy tlionnl of tlm lliir- tnontli of May, IS-Jit, without |Mit'tbi|;uRoii*triictii»i<»ii tlmt net, tho corrocuiuM wtiteh wtw snrbwntv »pin»tb»n«il.-— Tlm voluiitourrnrcDs nmv in thnflnltl, with llmin iviiicli lmd howl “ uceDptrit" to "sorvn for hvnlvn umntlis,” utul wore dbdinrgod nl tlm mid of tlioir term of snrvico. «ixlmu*t tlm fifty thnu*iiiid nutlmrl/.nd hy tlmt not. Had H Imcn idtntr Hint u proper coiutrin tinn of tlm net wnmintnd it, tlm *»>r- vlctts of nil liddltimiiil iiiiintiur would lmvo Imuimillnd Ihr uml nenoptud; but duuliU uxisting upon this puiut, tim powor was not tt.\i)rui*ad. It isdimumd iiupnrtiint tlmt Con;fru?8 shoiihl, at nil enrly period of tlioir siit>sioii, cntifnr tlmuiitlmrity to ruisn mi ml- ditiomil rimuhir for go to sorvo during tiio war with Mexico, nud tu ho dinclmri'ud upon tim couchi-dun uud rntillcntion of a treaty of pcuco. I Invito tlm attention nf Congress tn tlm views presented by tlio iJccrelnry of War III his report up ou tills subject. I rocoiiiniend, iiInd, tlmt authority Im irivcii liy law to cull for uud nccept tlm services of an udditimiul iiiiinlicr of vol unteers, lo Im exereised ulkiich limn mu) to such extent us tlm emergencies of tlm service may require. Iu pio'umitiiq.' tlm war with Mexico, whilst the utmost cure (ins been tuhcii to avoid every• in-t t-iiiisu of eoinpluiut on the part of neutral nation*, a’ini mine Inm been jriveil, liberal privileges lmvo been grunted lo tiieir cnuiuiorcu in tlm |mrt* oft Im enemy hi onr military occupation. ThoiliffiettUy with tho JVni/.Hi.ni government, which nt one lime tiireutnimd to interrupt the tVieinliy relnlioim lie- tween the twncoitutries.will, I trust, lie speedily inti»*ted. I have received information tli.u un out oy (•xlrimnliimry und iiiiiiistur pli-uipolDiilinry to tlm United JStntes will shortly bo appointed by hit- Imperial majesty' j und it is Imped tlmt lie wiilcnmu iimtriicted und prepared to udjiist uli remaining ttifl'erences between the two governments in n manner tn- eoptaMe nud lioiiorable to both, fu tlm meantime, I liuvu every ron.-mn to believe tlmt notliiog will occur to|intcrriipt oiirnniicublu relutions witli liruvtil. It bus boon my constant ellort to iiiiiiiituiu nud cultivate tlm limit intimate relations of frieinlhliip with uli tlm inde pendent Fownr? of South America; uud this policy hns been uto’nd.ul with the happiest voselt*. It is true, that tim settlement uml pnyinmitof many just claim* of Aumriean citizens ngniiixt these nation? have been lougdelayed. Tin poeiiliur position In which they have been iilacud, and tin desire on tlm part of my predecessors, as well us myself, to yniut them the utmost indulgence, lmvo hitherto prevented these claim* from lining urged in a iiiiiuimr ileiiiaiulnd hy strict just ice. Tlie tlmu Hum tu-rrived vv him they ouglit to he filially adjusted nnd liquidutud, uud e/lorto uro now making for that piirpiiMi. . It is proper to inform you Hint tlm government of Peru Im* in ’nod fultli paid the first two iii?tiduiniitn of tim Indemnity of thirty thousand dollar? each, uud thu groutor portion of tlm interest due there on,'in execution uf the convention be tween tlmt government mul the United Stutoa, the ratified- thin? of which worenxchiin,sod nt Limn mi tlm thirty-first of October, 18-1(1. The Attorney Geimrnl of the United Slate?, early ill AugltM lust, completed tile adjudication of the ciiiiiii? under till? convention, and made hi? report there in jHi/piiaiico or the net of the eighth of August, 181(1. 'i mi un to which thu claimant? uro respectively entitled will be paid ou demand nt tlm treasury. I invito tim ourly attention of Congress to tlm present condition of our citizens iu Chinn. Under ourtrenty with tlmt power, American citizen? ure withdrawn from the ju risdiction, whether civil or criminal,of thu Chinese govern ment, und placed under tliut of our public functionaries in that country, liy these alouo can our citizen? he tried uud punished for tho commission of any crime; by these alone cun question? be decided between them,involving tlm right? of person nud property; nud by thoso ulono can contract* Im enforced, into which thoy iiiuy lmvo entered with tho citizens or subjects of foreign powers. Tho merchant vessel? oftho United States, lying in the water? oftho liv- 1 o it* of China open to foreign commorco, nro undertlie ex elusive jurisdiction of ollieers of tiieir own government- Until Congress slmll establish competent tribunals to try und iitiniriii crimes, nnd to exercise jurisdiction in civil ca ses in Chinn, American citizen? there ure subjects to no law whatever. Crimes may Im committed with Impunity, mul debts may bo contracted without any mean? to enforce tlmir payment. Inconveniences lmvo already resulted from the omission of Congress to legislate upon tho subject, ami still groutor nro apprehended. Tho llrltlsh authorities in China have already complained that this government im? not provided for tho punishment of crime* or the enforce ment of contract* ogiuttot American citizens iu thut coun try, whilst their government has established trihiimtl* by which nil American citizen cun recover debts due from Ilrit- i?h subjects. Accustomed ns the Cliineso nre to nummary justice, they could not Im made to comprehend why criminal?, who nro oitizgu? of tho Uuitud States, should escape with impunity, in violation of treaty obligations, whilst tlm nnnlsliinent of u Chinese, who had’commit tod any crime iiguliint un Ameri can citizen, would Im rigorouslv exacted. Indeed, tim con sequence? might be fatal to American citizen? iu China, should ullagraut crime lie committed by one ofttimm upuii.’a Chinese, und should trial mid punishment not follow accor ding to tlm requisition* of the treaty. This {might disturb, if not destroy our friendly relations with that empire, uml cause an interrupt ion of our valuable commerce. Onr treaties with the Sublime l’orte, Tripoli, Tunis Mo rocco, und Muscat,utoq require tlm legislation of Congress to curry them into execution, though tlm necessity for iinum- diutu uctioii may not lie so urgent a* in regard to China. The Secrotary of State has submitted nu estimate to de fray the expciue of opening diplomatic relations with tim Papal State?. Tho interesting political events now in pro gress in Ihcso States, us well us a just regard to our com- morcinl interests, have,in my opinion, rendered such a mea sure highly expedient- I-totiinntu* lmvo also boon submitted for tho outfits nnd snlnrios of charges d'ufi'aircs to tlie republics of llolovin, (luutaumlu, uud Uc.uudur. Tim uuiuilest importance ul cultivating tho most friendly relutions with nil tlm inde pendent State* upon this con I incut Im* induced me to re commend uppropriutiou* necessary for the inuintciianco of thoso mission?. I recommend to Congress tlmt nu appropriation lie mado, to bo puid tu tlm .Spanish Government lor tho purpose oi distribution among tlm clniinmits in "tlm Amtotnd case." 1 cuturtuiu tlm conviction that this is dim to Spuiu under tlm treuty of tho twentieth of Uctolmr, 17P5; und, moreo ver, that, from tho curliest manner in which the claim con tinue* to bo urged, so long ns it ahull remain unsettled, it will bo a source of irritation niid'dtocnrd between tha two cnuulrios, which may prove highly prejudicial to tlio in forests of tho United timte*. Good policy, t no less than faithful compliunce with our treaty obligations, require tliut tho inconsiderable appropriation demanded should hu made. A detailed Mutamcut uf tha condition af the fittauce* will lltlOMllll „„ B ,„ v . j - . . bo proseutoil In tlio annual report of the Secretary of tlm • mir , n , um I collimurciiii marine W" 7 Treasury. The import? for tim last fiscal year, ending on “m- 1 * 1 . nilmr nation ill tho AvorW* thirtieth of June, IH17, were of the value .if ono hundred , '* n ” ,,,n * nl auv otllLr 11,11,0,1 ,n and forty-six million fivo linndred nml forty-five thou sand tix hundred and ihirly-eiglit dollar* 5 of which thu amount exported wu* eight million eleven f lioiinuidoue hun dred uud fifty-eight dollars, leuviug one hundred nnd thlr. ty-eight million five linndred and thirty-four thousand four hundred and nighty dollars in tho country for domestic ure. Tho value of tho exports for the inmo pariod wa» ono hun dred und fifty olght million »ix hundred and forty right thousand six hundred and twenty two dnllur*; of which ouo hundred and fifty million *lx, hundred and thirty seven thousand four hundred aud sixty-four dollars couatoted of domestic productions, and right million eleven tlioiisaud one hundred end fifty eight dollars of foreign articles. •Tlio receipts into tlie treasury Ibr tlio tame period a- mountctl tq twenty-six million three hundred and forty-six thousnud seven hundred and ninety dollars nnd thirty-seven cents, of which there was derived from customs twenty- tlira)million seven hundred uud forty-seven thuu-nud eight