Indiana American, Volume 16, Number 50, Brookville, Franklin County, 8 December 1848 — Page 2

PRESIDENT'S MESSAGE. Fellow-citizens of Senate, and ITouse of fieprttentotive.it Under the benignant Providence of Almighty God, the representatives of the States and ol the people, are again brought together to deliberate for the public good. The gratitude of the nation to the Sovereign Arbitrator of all human events, should be commensurate with the boundless blessings which we enjoy. Peace, plenty and contentmr. reign throughout our borders, and our beloved- -Imtry presents a sublime moral spectacle to the world. The troubled and unsettled condition of some ol the principal European powers, has had a necessary tendency to check and embarrass trade, and to depress prices throughout all commercial nations; but notwithstanding these causes the United States, with their abundant products, have felt their effects lees severely than any other country, and all our reat interests are still prosperous and successful. In reviewing the great events of the past year, and contrasting the agitated and disturbed state of other countries with our own tranquil and happy condition, we may congratulate ourselves that we are the most tavored people on the face of the earth. W hile the people of other countries are struggling tor free institutions, under which man may govern himself, we are in the actual enjoyment of them, a rich inheritance from our fathers. While e ntiehtened nations of Europe are convulsed, and distracted by civil war, or intense strife, we settle all our political controversies by the peaceful exercise ol the rights of freemen at the ballot box. The great republican maxim so deeply engraved on the hearts ot our people, that the will of the majority, constitutionally expressed, shall prevail, is our sure safeguard against force and violence. It is a subject t just pride, that our fame and character as a nation, continue rapidly to advance in the estimation of therivilized world. To our wise and free institutions it is to le attributed, that while other nations have achieved glory at the price of the suffering, distress and impoverishment of their people, we have won our honorable position in the midst of an uninterrupted

prosperity, and of an increasing individual comfort and happiness. I am happy to inform yon that our relations with all nations are friendly and pacific Advantageous treaties of commerce have been concluded within the last four years with New vrenacia, rem, the two Sicilies, Helgium, Hanover, Oldenburgh, Mechlenburg, Schwerin. Pursu ing our example, the restrictive system ol Great fintain, our principal foreign customer, lias been relaxed; a more liberal commercial policy has been adopted by oilier enlightened nations, and our trade has been greatly enlarged and extended. Our country stands higher in the respect of the world than at any former period. To continue to ccupy this proud position it is only necessary to preserve peace and faithfully adhere to the great and fundamental principle ot our policy, non-interterenee in me uoniesuc concerns ot other nations. We recogniz; in all nations the rights which we enjoy uumeiTe, anu to cnange ana relorm their political institutions according to their own wills ami nleaeure. Nor do we look behind existing governments capable ot maintaining their own authority. We recognise all such actual governments, not only mm me uiciaiea oi irue policy, but trom a sacred regard ior me independence ot nations. vV hile this is our settled policy, it does not follow that we can ever be indifferent sjiectators ol the process oi iioerai principles, i he government and people of the United States hailed with enthusiasm and delight the establishment of the French Ke pui.nc, as we now nail the efforts in progress to unite the states ot Germany in a Confederation similar in manv resuects to our own t-e.Wnl I If the great and enlightened German States mvn. pying aa they do a central and commanding osiuon in Europe, shall succeed in establishing such a Confederated t Government, securing at the same tune to the citizens ot each State, local govern nients adapted to the peculiar condition of each unrestricted trade, and intercourse id. .-.., it will be an important era.in human events. Whilst it win consolidate and strengthen the power of tier many, it must essentially promote the cause o peace, commerce, civilization, and constitutional liberty, throughout the world V Hit all the Governments on this continent, our relations, it is believed, are now on more Iriendly and satisfactory foot inn than they have ever lieen at any former tieriod. Since th exchange of ratifications of the treaty of peace with Mexico, our intercourse with the government of that Republic has been ol the most ltiendly character. The Minister Plenipotentiary of the United States to ivrexico, uaa been received and accredited, and M.r.ul,,ui. -it:ciiiauoii 1 mm Mexico ot similar man. nas oeen recei ved and accepted by this gov eminent, i ne amicable relations between the two countries, which had been suspended, have lecn happily restored, and are defined, 1 trust to be long preserved. The two Republics, both situated ..u. touiuieni, ana with contiguous territorie have every motivo ot nym, ,J interest i bind them tosether in perpetual amity iuo lauijiiig Luiiumoii 01 our loreisn relations tenders it unnecessary tor me to call your alienlioi more especially to tnem It has been my constant aim and desire, to rnlii vate peace and commerce with all nations.- tran omlity at home and Deaeeful relations ahn. I stitute the true permanent policy ot our country vv ar, the scourge ol nations; sometimes becomes inevitable, but is always to be avoided w hen it can r.e aone consistently with the right and honor the nation. t me ot ihe most important results of the war into which we were recently torced with a neighboring nation, ts the demonstration it has afforded of the military strength ot our country. Before the late w ar w an .Mexico, European and other toreign pow ..,,riMlra Hiipeneci ami erroneous views o cur physical strength as a nation, and of our al.it i ty to prosecute war and a war waved out of our cw n country, ihey saw that our standing army cui uie peace establishment did riot exceed 10,000 m-muiraeo tnemseivr, to maintain in peace, large standing armies, tor the protection ol thrones against their own. subjects, as well as against foreign enemies, tlIT-y feac not conceived vuai u was impossible tor a nation without such an army, w ell disciplined and of long service, to wane . , y ..y. i uey neia in low repute our mi una, , and were lm froln regarding them as an etlec tive tore.e, unless it might be for Umporary defen ?.'.Ye Operations when invaded on our own soil 1 oe event ol ttie late war with Mexico, have not only undeceived them, but have removed erroneous impressions which have prevailed to some extent even among a portion ot our own countrymen That war has demonstrated that upon the breaking out of hostilities not anticipated, and tor which no previous preparation has been made, a volunteer army of citizen soldiers equal to veteran troops, and in numbers equal to any emergency, can in a short period be brought into the field. Unlike what would have oecurrcd in any other country, we were under no necessity ot resorting to conscriptions. On the contrary, such was the number of volunteers who patriotically tendered their services, that the chiel uinicuuy was in maKing selections and determin ing who should remain at home. Our citizen sol diers are unlike those drawn from the population ol any oilier country. 1 uey are composed indiscriminately of all protessions and pursuits; of farmers. lawyers, physicians, merchants, manufacturers mechanics, and laborers; and thus not only among the otticers, but the private soldiers in the rank Our citizen soldiers are unlike those of any other o.imry in ouier respects, j ney are armed, and nav e oeen accustomed trom their youth up to han die and use tire arms: and a larsre nnrtion of tl.om especially in the western and more newly settled tates, are expert marksmen. They are men who 15 rwpuiaiion to maintain at home by their umuui-i in ine iieiu, ana they are intelligent anu mere is an individuality ol character which i murrain tne ranks ol no other army. l nc war with Mexico has demonstrated not on ly me ability ot the government to organize a numerous army upon a sudden emergency, but also to provide it with all the munitions and ne cessary supp ies with dispatch, convenience and ease, and to direct its operations with efficiency. I he strength ol our institutions has not only been displayed in the valor and skill of our troops engaged in active service in the field, but in an organization ot those executive branches which vere charged with the general direction and conduct of the war. While too great praise cannot Iw bestowed upon the officers and men who fought our battles, it would be unjust to withhold from those otticers necessarily stationed at home who were charged with the duty of lumishing the army, in proper time and at proper places, with all the munitions of w ar and other supplies, necessary to make it efficient, the commendation which they are entitled. The credit due to this class of our officers is the greater, when it is considered that no army in ancient or modern times was ever lietter appointed or provided than our army in Mexico. Operating in an ene-m"lf"?'"rT-1",,u,ved" A miles from the seat ol tbefpeUral government, d.'vrer' corps spread over a vast extern of territory, h.iuoi -la and even

all these facta are considered, it may cease

to be a matter of so much amazement abroad, how it happened that our noble army in Mexico, regu-! lars and volunteers, were victorious, upon every battle field, however fearful the odds against them. The war with Mexico has thus fully developed the capaeity of republican governments, to prosecute successfully a just and" necessary foreign war with all the rigor usually attributed to more arbitrary forms of government. It has been usual for writers on public law to impute to Republics a want of that unity, concentration of purpose, and vigor of execution which are generally a dmitted to be long to the nionarclual and aristocratic tortus; and this feature of popular government has been supposed to display itselt more particularly in the conuct ol a war carried on in an enemy s territory. The war with Mexico has developed more stri kingly and conspicuously another featurs in our institutions. It is, that without cost to the government, or danger to our liberty, we have in the bosoms of our society of freemen, available in a just and necessary w ar, virtually a standing army ol two millions of armed citizen soldiers, such as toueht the battles of Mexico. but our military strength does not consist alone in our capacity tor extended and successful opera tions on land. The Navy is an important aim of the national defence. If the services of the Navy were not so brilliant as those of the Army in the late war with Mexico, it was because they had no enemy to meet on their own element. While the army had opportunities ol performing more con snicuous service, the Navy tartretv participated in the conduct of the war. Both branches of the service performed their whole duty to the country. r or the able and gallant service ot the oflicers and men of the Navy, acting independent, as well as in co-operation with our troops in the conquest ol the Calitorniae, the capture ot Vera Uruz, and the sei zure and re-occupation ot other important posi lions on the Gull and racilic coasts, the highest uraise is due. Their vigilance, energy and skill rendered the most effective service in excluding the munitions ot war and other supplies trom the enemy, while they secured a sate entrance tor abundant supplies tor their own army. Our ex tended commerce was no where interrupted, and lor this immunity trom the evils ol war, the coun try Is indebted to the Navy. High praise is due to the otticers ol the several executive bureaus, navy vards. and stations con nected wuh the service, all under the immediate direction of the Secretaiy of the Navy, lor the in dustry, foresight and energy with which every thing was directed, and furnished to give efficiency to that branch ot the service. The same vigilance existed in directing prepara tion of the Navy, as of the Army. There was con cert of action and of purpose between the heads of the two arms of the service. By the orders which were from time to time issued, our vessels ol war on the Pacific, and the Gull of Mexico, were sta Honed in proper time and in proper positions to co operate efficiently with the army. By this means their combined power was brought to bear success fully on the enemy. 1 he great results which have licen developed and brought to light by this war, wilt be ot immeasura ble importance in the future progress of our coun try. They will tend powerfully to preserve us from toreign collisions, and enable us to pursue utnnter mptedly our cherished policy ot "peace with all na lions, entangling alliances with iisne." tVcupying, as we do, a more commanding posi tion among nations than at any former period, our duties and our responsibilities to ourselves and pos terity, are correspondingly increased. I his will be the more obvious when we consider the vast ad litions whirl, have recently lieen made to our ter ritorial acquisitions, and their great importance and value. Within less than four years the annexation of Texas to the Union has been consummand; all conllicting title to the Oregon Territory sou ill of 4'J deg. north latitude, being all that was insisted on by any of my predecessors, has been adjusted; and New Mexico and upper California have been acquired by treaty. Ihe area ot these several territories according to a report carefully prepaied by the Uommissioneis of the General Land onice, trom the most authentic information in Ins posses sion, and which is herewith transmitted, contains l,193,ut.l square miles; or 763,f59,040 acres, while the area ol the remaining twenty nine States, and the territory not yet organized into States east ol the Kocky mountains, contains "J.VJO.fil.i t-quaro miles, are 1,318, K'b.OM acres. These estimates show that the territories recently acquired, and over which our exclusive jurisdiction and dominion have been extended, constitute a country more than halt as large as that which was held by the United States twtore the acquisition. If Oregon I excluded trom the estimate, there will stilt remain within the limits of Texas, New Mexico and Cal fornia SM,r.;S square miles, or M:.,120,7A) acres, being an addition equal to more than one third ot all the territory owned by the United Stub s before ttiis acquisition, and, including Oregon, nearly as great an e vent ot territory as the whole ot Europe, Russia only accepted. I'l.e Mississippi so lately ihe frontier ol om-country, is now only its centre. With the addition ot the late aoqiiivuiuiia. the I1. Stales are now estimated to be nearly as large as the whole ol Europe. It is estimated by the superintendent ol the coast survey, in the accompanying report, that the extent of the sea coast of Texas on the Gull ol Mexico, is upwards of 400 miles; of the coast ol Upper California, on the Pacific, 970 miles; and of Oregon, including the Straits ol Fuca, ot t.fMJ miles, makiim the whole extent of sea coast on ihe Pa cific l,t'AJ miles, and the whole extent on loih the Pacific and the Cull ot Mexico 2,020 miles. The length of tho coast on the Atlantic, from the northern limits ot the U. States, around the Cais ot Florida to the Sabine, on the eastern boundary of 1 exas, is estimated to be .1,000 miles, so tmt the addition of sea o.f, including Oregon, ii very nearly two thirds as great as all we possessed before; and excluding Oregon for an addition ot I,'.t70 miles; 'icing nearly equal to one half the extent of coast which we possessed More these acquisitions. We have now three great maritine fronts on the Atlantic, the Unit ol Mexice and the Pacific, making in the whole, an extent ot sea coast, exceeding fHHHJ miles. This is the extent of the sea coast of the States not including bays, sounds, and small irregularities of the main shore, and of the s a Islands. If these be included, the length of the hore line of coast, is estimated by the superintendent of the coast survey would be .w.003 miles. It would be difficult to calculate the value of -i these immense additions to our territory possessions. Texas, lying contiguous to the Western boundary of I-oumiana. embracing within its limits a part ol the navigable tributary waters of the Mississippi, and an extensive sea coast, could not long have remained in the hands of a foreign power w ithout endangering the peace of our south-western frontier. Ifer products in the vicinity of the tributaries of the Mississippi must have sought a market through these streams, running into and through bur territory, and the danger of irritation and collision of interests between Texas as a toreign State and ourselves, would have been imminent, while the embarrassments of commercial intercourse between them must have been constant and unavoidable. Had Texas fallen into the hanJs.or under the influence and control, of a strong maritime or military foreign power, as she might have done, these dangers would have been still greater. They have been avoided by her voluntary and peace'nl annexation to the United States. Fexas, from her position, was a natural and most indispensable part of our territories. Fortunately, she has been n stored to our country and now constitutes one of the States of our confederacy, "upon an equal f.K.ting with the original States." The salubrity of the climate, the fertility of soil, peculiarly adapted to tiie production ot some ol our most valuable staple com modities, and her commercial advantages, must make her soon one of our most populous Mates New Mexico, though situated in the interior, and without a sea coast, is known to contain much fer tile land, to abound in rich mines of the precious metals, and to be capable of sustaining a large population. From its position, it is the intermediate and connecting territory between our settlements and our possessions in 1 exas, and those on tlie Pacihe coast. Upper California, irrespective of the vast miner al wealth recently developed there, holds at this day, in point of value and importance to the rest of the Union, the same relation that Iiouisianx did, when that fine territory was acquired f rom France 43 years ago. Extending nearly ten degrees of 1a iiiuue aiong tne 1 acinc, ana embracing the only sate and commodious harbor on that coast, tor many hundred miles, with a temperate climate and an extensive interior of fertile lands, it is scarcely possible to estimate its value, until it shall lie bro't under the government of our laws, and its renr ces fully develoied. From its position it must command the rtch commerce ol China, of Asia, of uie islands ol t he Pacific, ol Western Mexico, ol ventral America, the bouth American states, and ol the Russian possessions bordering on that ocean. A great emporium will doubtless speedily arise on the California coast, which may be destined to rival in importance New Orleans itself '"h depot ol the vast commerce which must exist . '"Pacific, will be at some point on the bay ol ! rancisco, and will occupy the same relaiion whole western coast of that oeean, as Newts does to the Valley of the Mississippi and lf ot Mexico. To this depot our numerous ships will resort with their cargoes to trade, nd obtain supplies. This trade w ill largely bute to build up a city, which would soon e the centre of a great and rapidly increasing erce. Situated on a sale harbor, sutticitnily ions for all the navies, as well as the marines world, and convenient to excellent timber ps building, owned by the United States, it Become our great western depot, as know 11, that mines ot the precious metals d to a considerable extent inCal.tornia at the if its acquisition. Kecent discoveries render able that these mines aie more extensive and ble than was anticipated. The accounts ot

the abundance of gold in that territory, are of

such an extraordinary character as would scarcely command belief, were they not corroborated by the anthentic reports ot omcers in the public service, 1 1 j . 1 : . J- . . i j - w no nave visueu tne mineral uistnot, am arrive the facts which they detail trom personal ol s rv ation. Reluctant to credit therepoits 111 general circulation as to the quantity of gold, the ollict r com manding our forces in t. alituriua, visited the mineral district, in July last, for the purpose of obtain ing accurate intormalton on the siibiect. His report to the War Department ot the result of Ins exami nation, and the lacts obtained on the spot, h herewith laid before Congress. When be visited the ountry , there were about 4,0oo persons eiiKHk d in collecting gold. There is every reason to believe that the number ot iersons so ciiu.lored has since been augmented. The explorations already made warrant the beliel that the supply is very lawe, and hat gold is found at various noints in an extensive district ol country. lntormation received from oflicers ol the INav v and other sources, though not so lull and minute. confirm the accounts ot the commander of our military force in California. It appears, alo, ti out these reports, that mines ot quicksilver are lound in the vicinity of the gold region; one t.l 1 hem is now being worked, and is believed to be among tne most productive 111 tne worm. 1 he ettccts produced by the discovery nl these rich mineral deposits, and the success winch has attended the labors of those who have rosoiud to them, have produced a surprising change in ihe state of affairs in California Labor commands most exhorbitant price, and all other pursuits, but that of searching for the; precious metals, are abandoned. Neaily the w hole male population ol the country have gone to the gold district. Ships arriving on the coast, are deserted by their crows, and their voyages suspended lor w ant ol sailors.uur commanding otiieer there enteita.ns appre hensions that soldiers cannot be keut in the tuii.lic service, without a large increase ot pay. IV-i r Hons in his command have Income trrournt, and he recommends that those, who shall witl.staiid tho strong temptation, and remain luithliil should U rewarded. " Tliis abundance of gold, and the all engrossing pursuit ol it, has already caused in Calilontu at unprecedented rise 111 the necessaries ol lit.-. 1 hat we may the more speedily and lullv avai ourselves ol the undeveloped wealth ol these mines it is deemed ol vast importance that ahrftiidiot tin mint ot the l. states be authorised to be es'al. i.ed, durins the present session, in Calili.rnia Among other signal advantage w hich would nsul ironi sucn an esiaiiii.-imn in, vvoui.t he that ol nns mg the gold to H9 par value in that territory. branch mint 01 the t inted Mates at the great com mercial depot on the West coast, would eonver nto our coin, not only the mM th rived tnmi on own ricn mines, but also the bullion an.! specie which our commerce may bring Iroiu the whole west coast, Gentral and Souili America. I West coast ol America, and the ailiacent interior embrace the best mines ol New Mexico, New tire nana, Central America, Chili and Peru. Ihe bullion and sKcie drawn from tliiw c.ituitries, and especially trom those ol Western M. -view and Peru, to an amount in value of many miliums of dollar, are now annually diverted nm! rani, d by the ships of tSreat Britain tn her own ports, to lie recoined, or used to sustain her National l. ini;, and thus contribute to increase her ability to com maud so niuchof the commerce ol tlier world. II a branch mintl established, at the gn at coiiiiueicial point oil tin- coast, avast amount ol bullion and specie would tlow thilher to le recoined, ami puss thence to N. Orleans, N. York, and other Atlantic cities. The amount ol our constitutional currency at home would bo greatly incrcassd while its circulation abroad would lie promoted. It is well known to our merchanis trading to t'l.nui and the-west coast ol America, that great iiicuiiveiiicucc no. I loss are experienced Iroin the lacts that our coins are not current at their par value in tliiwecomitiies. Ihe powers ol Europe removed Ironi the west coast ol America by the Atlantic ocean, which in tervenes, and bv the tedious and dancroii uivigntion around the southern capo ol the cmiiincm ol Anieiica, can never siu eesslully lompctc w ith the Ulliled States in ihe rich and extensive l oiiuni rcc which is openeel to ns at so much Icsi cost by the acquisition ot California The vast importance and commercial advantages of California have- heretofore remained undeveloped by the government ol the coiinti y ol which it constitutes a patt. Now that Ibis line pi..vimi is a part of our country, all l the Stales . the Union, some more immediately ami directly than others, aie deeply interested 111 the speedy development of its wealth and icjonrcesi No :ec!ion ol our country is mote interested, or will be bun Int. d more than the commercial, iiaviuaini and n.ai.u facturing interests of the t-'.aiein .''tales 1 nr planting and tarniin? interests in every part ol the Union will be greaily Itenelittcd by it As niu commerce and navigation are e nlarged and extend, d, our exports ot agricultural product nnd our maim lacttires, will I increased, and in ihe new n.atktis thus opened, they cannot tad to command n 1.111 iterating and profitable prices. 'Phe acquisition of 'nlitnrnia and Now M.,co. the settlement of lliel irei'on U.undaiv, and the annex alloll ot Texas extending to the l.'lo Grande, are results w liich combined, are i.l en aicr 1 .mscquence, and will add more to the etr. nili and wealth ot the nation, than any who li bav prt . eded them since the adoption ol the eoiistitiilii.il Hut to ettect these results, not only Calil.. una, but New Mexico must be brought under the control ot regular organized gov. iiiiiicnis. The existing condition of California, and ot that pan ot New Mexico lying West of the Km Grande, and without the limits ol 1 exas, imperiously dciiiiuula that Congress should, at its present sessson, orcan ize territorial governments over them I Upon the exchange ot ratification ol the treaty 1 of peace w ith Mexico. 011 ihe ::oih ol Mav il.ei. m pornry povcrniiici.is men mi 11 oeen estanii.-iif it over lxew iviexico, naa ceasea to exist. Imprepse-a I .. with the necessity ot establishing territorial ernments over them, I recommended to the favorable consideration of Congress, in my Message cornmunicatiiig the ratified treaty ol peai-e, on ihe oth ol July last, and invoked their action al that - ssion. Congress adjourned without makiiu' any provision lor their government. The inhabitants, by the transfer ol their country, tiave become uiitled to the hem tits of our laws and Constitution, and yet were left without any regularly ornatmed government. Since that time, ihe very iimiitd power possessed by the Executive has Ih.ch exercised to preserve and protect them from the inevitable consequences ol a state of anarch v. The only government which remained w as thai estabii.-hed by military authority during the w ar. Regardino this, de facto government, and that by the presumed consent of theiithabitants.it might be continued I I 1 ,1 , ifoTr.'. 1 WTe ,a,,v,s,Hl "'"' ?J submit to it tor the short intervening period Ik lore

Congress again assembles, and coi.Td legislate on ,1.0111,01,1 """"""" the subject , i It was upon these considerations that at the close The views entertained by the Executive oil Ins 0f your last session. 1 gave my sanction t the sTrl'ia'rT TSl ," wl"nJ,1,'";,1? ,f, ,h" ! rt.i.cipic ol the Missouri Compromise line by ap- . I . ? h .' U tk'e-lT' U"1' I Proving and signing the bill to establish the terr.toMn 1 I,uhl''.'0,l '. 1 '"""! ' I nal government of Oregon. From a sincere detransniilTed ' l'Y "f w',,,rh ,S hpr " "'' e to preserve the harmony of the Union, and in

The small military force of tho regular army, which was serving within ihe limits ot the acipurt d territories at the close ot the war, was retained in them, and additional forces have been ordered there for the protection of the inhabitants, and to preserve and secure the tights and interests ol the U States. No revenue has been. tr could le, collected ai tlie posts in California, because Congress tailed to authorize the establishment of custom hotios. or the appointment of officers lor that purpose, k. The Secretary of the Treasury, by circular letter addressed to Collectors of the Customs, t n the ith day ot t H'tober last, a copy of w hich is with transmitted, exercised all the power w .1, I ITP. wnicli he was invested bv law. In pursuance of the act of the llth August last extending the. benefit o. Post t mice laws ,0 the peupie i v.aiiiornia, me 1 .ist .easier ueiicral has I . ..i n.i.i : 1. . i Pl.. i.eu c- o iTi,,, w . .. naxe procecu, ,1. the one to vailiorilia, niitl lot- tuner 10 1 .regOU, With the : authority to make the necessary arrangem. uts for carrying its provisions into etl.-et. The monthly line evf mail steamers from Panama to Astoria have been required to "stop and deliver and take mails at San lfiego, Montirey, and San Francisco." These mail steamers, connected by tlie Isthmus of Panama with the line ol mail steamers on the Atlantic between New York and Chagres, will establish a regular mail communit-atiou with California. It is our solemn duty to provide, with the least practicable delay, tor New Mexico and Calilornia. regularly organized territorial .governments. The causes of the failure to do this at the last session ot Congress are well known, and deeply iole regret ted. ith the opening prospects ol increased prosperity and national greatness which the acquisition ol these rich and extensive teiritorial possessions adonis, how irrational it would bo to fore-go or to reject these advantages, by the agilatioa of a domestic question which is coeval wuh the existence ot our government itself, and to endanger by internal strifes, peograbhieal divisions and beai.d contests, for political power, or lor any oilie r cause. tne Harmony ol theglonoiis l ni..u ol our contetlerated States; that union which binds us totrciher as one people, and which lor sixty years has been our shield and protoctioil against every danger. In the eves of the worlds and of nosleritv. how trivial and insignificant will Ik- all our internal divisions and struggles compared with the preservation of this Union of the Stales in all its v alor, and with all its countless blessings. No patriot w on!.! foment and excite geographical and sectional di visions. io lover td his country would deliberate ly calculate the value of ihe Union. Future gen erations would took in amazement upon the tolly ol such a course. Other nations at the present dav would kok upon it w ith astonishment; and such .l them as desire lo maintain and perpetuate thrones and monarchist or anstocrauc principles, w ill view it with exultation and delight, because in it they

will see the element of faction, which they hope must ultimately overturn our system. Ours is the great example of a prosperous and free self-govern-! republir, commanding the admiration and the

mitstiori rl all lovets ot Ireedom throughout the world. How solemn, therefore, is the duty, how nipressive the call upon .us, and upon all par's ol ur country 10 cultivate a patriotic spirit ol tin- monv, ol good lellovvship, ot compromise, and inniual concession in the administration ol the incoin:. .ra le system ol government tormed by our lath, .s in the midst ol almost insu-rable difficulties, and Iran butted to us with the injunction that we should enjoy its blessings, and hand it down unim paired to those! w ho may come alter us. In view ol the high and responsible duties which we owe to oiiiselvcs, and to mankind, 1 trust you may be able, hi your prtbc.nl session, to approach the adjustment ol ti.e only domestic question, which seriously threatens or probably ever can tluent. il to distutb the harmony and successful ope ration ol our svatei.i. The immensely valuable possessions of New Mexico and California are already inhabited by s .oiiBidciable population Attracted by their great ertilhy, their mineral wealth, their commercial advantages, and thv salubrity id the climate, emi grants Iroin the older Slates, in great numbers, are already preparing to setk new homes ill these in viiing regions. Miall the dissimilarity r.l domestic institutions in the dihVrenl States pie.venl us from providing lor (hem suitable governments? I hese institutions existed at the adoption of the Constitution, but the obstacles which they interposed were overcome by that spirit ot con. promise which is now invoked. in conliict ol opinions, or ol interests, real or mi aginary, between ditlerent sections of our country, neither can justly demand all which it might de sire to obtain. I. ach. 111 the true spirit ot our in s'.itutions. should concede something to the other. t nr gallant forces 111 the Mexican war, by whose patriotism and unparalleled deeds of arms, we ol.iaiin d tht-e possessions as an indemnity for our lust demands against Mexico, were composed of citizens who Wonged to no State or section ol our Union. They were, men tr im slave-holding and non-slavehol.ling State", from the north and trom the south, from the east and the west. They were all companions in arms, and follow citizens of the same common roimtiy, engaged in the same com nion cause. When prosecuting that war iliey were brethren and h lends, and shared alike with each other common mil, dangers and sullerings. Now when ttetr wotk is ended, when peace is restored and they return again to their homes, put oil the lialiiliiu. nis ot war, lake their places in society and resume their pursuits in civil lite, surely a spin ol harmony and emission, and ol equal regard ior ihe rights ol all, and ol all sections ot the I in on. i.iifht to prevail, 111 providing governments l the acuiiiied territories the lruits of their com 111011 service. The whole people of the United States, ami ol eveiy Slate, contributed to defray the ex uses ot that war- and it would aot be ust ..r any one section to exclude another Iroin all par :u iiiuImii 111 ihu ac 1 111 red territory, i his would not he in Consonance w ith the just system of gov ernment which imp (miners of our constitution adopted. 1 lie question is believed to he rather abstract than practical, wl.i ;h.-r slavery ever can or would exist in any portion of the acipilieil tcrntory, even il it were It'll to the opinion ol the blave-holding Mates themselves. I rom Ihcnalureol theclunate and productions of the country, in much the lareportion ol it, it is certain it could never exist: and 111 the remainder the probabilities are, it w ould not But however tlos may he, the question, involving as it does, a principle of equality ot tights ol the sepaiale and several Males, as equal co partners 111 the coiih-ih racy, should not te disregarded In organizing fovernmeiits over these territories no dm n s imposed on Congress by the Constitution r quire lliat tin y should legislate on the subject o; slavery, while their power to do SO is not only se rioiislv questioned, but dented by many ol Ui soundest expouiidels ol that instrument. Whelli 11 t'oiPTess shall legislate or not, ihe people of tl acquired territories, when assembled in I oilven tion, to I01111 Slate Constitutions, will oeses the solo Riul exclusive power to determine lor tin 111 selves wheth.-r slavery shall, or shall not, en within their limits. ( Congress shall bIwIhii ftom llileilelinu with ihe oiieslli.il, the people ol these territories w ill he leil Hte to adjust it as they 1.1a think pioner. when they apply for admi-.sion States into the I nion. No enactment ol Congress could 1. strain the people d any ol the sovetcig Stales ot the Union, old or new, Noithor Solid slHVeiiolditi'f or iion-sliileholding, trom determinii the 1 haracler ol then own domestic institutions as they mav .leeiu wisp and proper. Any and all ol the Stales possess this ripl.t, and Congress cannot di pine them ol it. The people ol Georgia, mieht il ilu y 1 boose to alter their Constitution as abolish slavery within its limits- and the people ol v ei iiioni iniMlit so alter tneir 1 onstiintion as to an nut slaw 1 y within its limits. Both States won possess thp iisiht; thoiiph, as all know, it is not inibable ihat either would exert it li is loi innate lor the peace and harmony of tl t ti.nt .e.s que-uion is temporary in its in tnre, and can only continue lor the btief ecu which v ill intei vene it lore Gaiitoriiia and New Mt.xico, may be adiiuitid ua Stales into the I iovii f rom the tide ol population now llow iiig intotheru, it is highly probable that this will soon occur Coiisideiing the sr vet at Stales and tlie citizens of ihe several .Mans as equals, and entitled to equal lights under the Constitution, if this were r.n original question it might well he insisted liK.n ll.al the plinciple ol lion nilerlerenee is ihe line doctrine, and that Congress could not in the absence of any expri -a grant of power, intertere w ill. their leiative lights. Upon a great emergency, however, and under menacing dangers lo ihe I 'nion, tl.p Missouri Compromise line 111 respect to avciy, was adopted. 1 he same line wasexten- ! .j t ui ttit.r west in the acquisitioii ol le.xas. Al an aconiesieiu e of lu tojy thirty years in the principle of compromise, recognized and establish ed by these acts, and to avoid the danger to the Union w hit h blight follow if it were now disregard! d, 1 have heretofore e xpressed the opinion that that line id compromise should lie extended on the paiallcl ol ;lii degrees JO minutes, from the western boundary of Texas, where it now terminates, to the Pacific oi-ran. - This is the middle ground ol compromise upon w hich the ditlerent sections ol the Union, may Meet as they have heretofore met. If this be done, it is confidently believed a large maiotitv of the people of every section of the connliy, however widely thtir abstract opinions on the subn et i.f slavery may differ, would cheerfully and patii nii-olly acquiesce in it, and ppace and liari,i..ih w ould aain fill uur borders. The restriction maik i4" the line w as only yieldI 1 l" 1,1 oir- iur-,- o ii.t Alir?Ollll ,.IIU I CABS, IIOOI! !t he principle of compromise made necessary for the I ,0 ,..or. . ,i, 1 ..i .. 'a.... M: ea to in ttie case ci the Missouri and Texas. I con.rainc to -MA rm Z. 2 ," lo which they hail gone in compromising this deli cate and dangerous .juestion. But it Congress shall now reverse the decision oy which the Missouri Compromise was effected, and shall propose to extend the restriction over tlie whole territory, as well as norih of the parallel ot M degiets, JO minutes, it will cease to be a compromise, and must be regarded as an original question. Il Congress, instead of observing the course of noii-iiiterlercnce, leav ing the adoption ol" their do mestic institutions to the people who may inhabit these territories; or if, instead of extending the il., . l'o.... . 1:.. : 1- .1 3?!?! - "a,". ,uucutiiii.iiiii ip.csilOIIB wmcii may rinse, 10 tne ucctsion ol the judicial triI ITZ I" " I " ?' ! l...nnl ... ...l - I.:.. .... - 1 . ... , fleeted in this mode . j ' uujti..iitiim uinj ir i, tne wnoie subioct be re ,,.rr, d , ,he Judicia ry.all parts ol the Cnion hhiii. hecrluuy acquiesce in the luial decision of ihe hri biinnl, created by the Constitution for the settlement ol all questions, which may arise under the Consti union, treaties, or laws of the United States. Congress is earnestly invoked for the sake of the Union, its harmony, and our continued prosperity as a nation, to adjust at its present session, this, the only dangerous question w hich lies ill our path, it not in some one of the modes suggested, in some oilier which may be satisfactory. In anticipation of the establishment of the regular governments over the acquired territories, a joint commission ol i-tJiceis ol the Army and Navy has lvn ordered to proceed to the coast of Calilornia and Oregon, lor the piirjose of making re.e.n-nvira-nce and the report as to the proper sites lor the erection ol fortifications er other defensive works on land, and of suitable situations for Naval stations, and the iidormaiion which may be expected Ironi a sctenufic'and skillul examination ol the whole lace of the coast, would be eminently liselul to (Vmress, when ihey come to consider the propriety ol making appropriations lor these treat national objects. Proper defences on laud will le necessary lor thp security and protection of (ur possessions: and the establishment of our itavy yards, and a dock lor the tepair and consttiiciion ol vessels, will I inqHirtant alike to our navy and commercial marine. Without such establishments, every vessel, whether of the Navy or ol the merchant service, requiring, repair, must, at great expense, come round Cape Horn to oneot our Atlantic Vards lor that purpose; with such establishments, w lit itevet it is believed may lie Luilt or lepairi'd as cheaply in California as upon the Atlan tic coast 1 hey would give employment to many of our enterprising ship builders and mechanics, and greatly la ilnate and enable our commerce in the Pacific. As it is ascertained that mines of gold, silver, copper and quicksilver exisl in New Mexico and e'a!.i..ri..a. and that nearly all the lands where they are tound belong to the United States, u is deemed

important to the public interest that provision be made for a geological and minerological examination of those regions. Measures should be adopted to preserve the mineral lands, especially such as

contain the precious metals, for the use of the United States, or it brought into market, to separate them from the farming lands, and dispose ol them in such a manner as to secure a large return of the money to the treasury, and at the same time ad to the development ol their weaun by indiidual proprietors and purchasers. To do this, it will be ntcessary to provide tor an immediate sur- - I . J r i I . li- m I.l ey aim location oi tne 101s. 11 confess ruoiuu eem it proper to dispose ot the mineral lauds. they should be sold in small quantities, and at a fixed minimum price. 1 recommend that surveyor i.enerai s timet s i suthorized to be established in New Mexico and California, and provision made for surveying and bringing public lands into market at the earliest practicable period. In disposing ol these lands, 1 recommend that the right of pre-emption be se cured, and liberal grams made to the early emi grants, who have settled, or may settle upon tnem. It w ill be important to extend our revenue laws, nver these territories, and esoecially over Califor nia, at an eariv i-.enod. There is already a consid erable commerce with California, and until ports of entry shall be established, and collectors appointed, nn revenue can be received. It these and other necessary and proper measures lrf adopted for the developempnt of the wealth ot New Mexico and Ca ilornia. and regular terntorial governments be established over them, such will probably te tho rapid enlargement ot our commerce and navigation; and such the addition to the national wealth, that the present generation may live lo witness the controlling commercial and monetary power of the world transferred from London, and other European emporiums, to the city ol New York. Phc apprehensions which were entertained bv some til our statesmen, tn the earlier periods of our government, that our system was incapable ol operating with sufficient energy and success over largely extended territorial limits, ana tnat it tins wereadopted.it would tall to pieces by its own weakness, have been dissipated by our experience Hv the division of power between the states and federal governments, the latter is found to operate Willi as mucn energy in me exiremes as in me centre. It is efficient in the remotest 01 me imrty states w hich now compose ihe Union, as it w as in .. . .. t-.- .i. r. i -....:,:., ine lmrievii la.es w incii loii.ieu um vunu.u.iu... Indeed, it mav be doubled, whether, il our prewent population had been confine d w iihin the limits ol the original thirteen Mates, tlie tenaencies to con centration and consolidation would not have been such as to have encroached upon ihe essential reserved rights of the States, and thus make the ted eral t internment a widely ditlerent one, practical ly, from what it is in theory, ana was intended to be by its trainers. So tar trom entertaining appre hensions of the saletv ot our system by the exlen sion ol our territory, the tielief is confidently en icTlained that each new State gives strength and additional guarantee tor the preservation ol tlie Union itself . In pursuance of tlie provisions of the 13lh article ol the treaty ol peace, iiienusiup, limits anu seme nient with the Keoubllc of Mexico, and of the ac of .lulv 2'th. lw4- claims of our citizens which had been "already liquadaied, awd decided against tlie Mexican Republic," amounting, wilh the interest thereon, lo v?,trJ3,t32 51, have been liquidated and paid. T here remains to lie paid their claims, $ .4, lv2 7b" Congress at its last session, having made no pro vision lorexeciiiin.tr tho lfdh article ot the treaty by which the I 'nited States assume to make satis faction lor the "mill. undated claims" ol our cm zens against Mexico, to "an amount not exceeding :.23o,Ot, tin; subject is again recommended lo vour favorable consideration. The exchange ot ratifications in the treaty w ith Mexico, took place on the join ol May, isi5 -Within one year alter that time, the Commissione and Surveyor, which each government stipulates to appoint, are rt quired to meet at tlie port ol Min Ihcoo. and proceed to run and mark the said boundary in iis whole course to the mouth ot the Rio Bravo del Norte." il will be seen from thi provision, that the period within which a Ccmmis sinner and Surveyor ol the respective governments are to meet at Sail Diego, will expire on the Ailh ol Mav IM'i Congress, at the close ol its last ses sum. made an appropriation tor "ttie expenses til running and maiking the be.undaty line" between the two countries, but did not fix the amount ol salaty which should I paid to the Commissioner and Surveyor to tie appointed on the patt ol the f nited States, li is desirable that the amount ol compensation they should receive should be pre scribed by law, and not left as at present, to executive discretion. Measures were adopted at thp earliest practical period to organize "the territorial government ot Oregon," as authorised by the act ol the 14t August last. The governor and marshal ol the territory, accompanied by a small est ni t, left the frontier ot Missouri in September last, and took the southern route, by the way of Santa fe and the river .ill to t alitorrna, Willi the inienlion ot pro c. e.iing ti.cn. e to one ot our vessels ot war to ihei destination. The governor was fully advised e the great importance ol his early aiuval at ihe country, and it is confidently believed he may reach Oregon in the latter part ot thp present month, or early in the next. The other oflicers tor ihe territory, have proceeded by sea. In the month of May last, 1 communicated in formation to Congress that an Indian war had bro ken out in Oregon, and recommended that author ty be given to raise an adequate number ol voltin leers to proceed w ithout delay to the assistance tl our It-How citizens in that territory, and the author ity to raise such a torce not having been grunted bv Congress, as soon as their services could be dis pensed with in Mexice, orders were issued to the regiment ol mounted ritlemen to proceed to Jeffer son Barracks, in Missouri, and to prepare to mnrcl to l Irei on as soon the necessary provision could be made. Shortly before it was ready to march, it was arrested by the provision ot the act passed by Con gress, on the last day of the last session, which di reeled that all the non-commissioned officers, musi scians and privates of thai regiment, w ho had been in service, be discharged. 1 he etlect ol this piovi sion was to disband the rank and file of the regi ment; and before their places could lie filled by re cruits, the season had so far advanced that It was impracticable for it to proceed until opening of the next spring. In the month of October last, the accompanying communication was received from the Governor of tho temporary government of Oregon, giving inlormauon oi ine continuation oi tne inaian disturbances, and of the destitution and defenceless condition of the inhabitants. Orders were immedi ately transmitted to the commander of our sauadron in the Pacific, to dispatch to their assistance a part of the navy on that station, to furnish them with arms and ammunition, and to continue to give them such aid and protection as the navy could afford, until the army could reach the country. It is the policy of humanity, and one which has always been pursued by the United States, to cultivate the good will of the oboriginal tribes of this continent, and to restrain them from making war, and indulging in excesses, by mild means, rather than by force. That this could have been done w ith the tribes in Oregon, had that territory been brought under the government of our laws at an par'!r period, and had suitable measures been adopted by Congress, such as now exist in our in tercourse with the other Indian tribes within our limits, cannot be doubted. Indeed, the immediate and only cause of the existing hostility of the Indians ot Oregon is represented to have been the long delay ol the United States, in making to them some trifling compensa tion, in sucn articles as iney wanted, lor the country now occupied by our emigrants which ihe Indians claim over which they formerly roamed. This compensation had been piomised to them by the temporary government established in Oregon. but its fulfillment had been postponed from time to time for nearly two years, whilst those who made it, had been anxiously waiting lor Congress to establish a territorial government over the country. The Indians liecame at length distrustful of their good faith, and sought redress by plunder and massacre, which finally led to the present difficulties. A few thousand dollars in suitable presents, as a compensation lor the country which had been taken possession e.f by our citizens, would have satisfied the Indians, and have prevented the war. A small amount distributed, it ia confidently believed, would restore suiet. In this Indian war our fellow citizens of Ort-pon who have been compelled to take the field in their own delence, have performed valuable military services, and have been subjected to expenses which have fallen heavily iiMvii ihein; so justice demands that provision should be made by Congress to compensate ihem lor their services; or to refund to them the necessary expenses w hich Ihey have incurred. 1 repeat the recommendation heretofore made to Congress, that provision I made for ttie appointment ol a suitable number ol Indian agents to reside among the trilwa of Oregon, and that a small sum lie appropriated to cnahlp these agents to culnvate friendly relations with them. If this be done, the residue ot a small military force will be all that is necessary to keep them in check and preserve peace. I recommend that similar provision be mads as regards the tribeo inhabiting Northern Texas, New Mexico, Calilotnia, and the extensive region lying between our settlements, and possessions, as the most effective means of preserving peace upon our holders, and within tlie recently acquired territories. The Secretary of the Treasury will present in his annual rerx.it. a highly saiisfactorv statement of the condition of the finances. 1 he imports for the fiscal year ending on the 20ih ol June last, were ol the value of 154.977.876: ot which the amount exported was $21,128,010, leaving 13,S49.S66 in the country, tor domestic use. The value of ihe exports for the same period was 154,032.U1, consisting of domestic productions,

amounting to tl32.904.l21. and 421.12S 010 unanld

of foreign articles. 1 be receipts into the Treasury for the same period, exclusive of loans, amounted to $33,4:!6,750 a?; oi wnicn, mere was aenved trom customs 131,ivn na f 1 . r . i i i . tt.v.u .-v. Hum raics oi puouc isnas, tp..,j'3,r.ix 50; and from miscellaneous and incidental sources, t'J;l,u37 07. It will I perceived that tlie revenue trom cus toms for the last fiscal year exceeded by $747,o7o ?C iiifr f-aiuiiaiv-a ,i utc . r, irmi j ui mc 1 leaaui ) , ill id last annual report; and that the aggregate rereceipt during the same period Ironi customs, lands, lid miscellaneous sources, also exceeded the esti mates by the sum ol 9..'0,.5u :.9 indicating. however, a very near approach in tlie estimate to the actual result. The expenditures during the fiscal year, ending on the 30th June last, including those for the war. and exclusive of payment of principal and interest of the public debt, were f 42,611,970 03. It is estimated thai the receipts into the 1 rcasury for the fiscal year ending on the first of June. 1S49. including the balance in the Treasury on the 1st of July last, will amount to the sum of f 57.015.909,90; cf which 432.0OO.tAlO. it is estimated will be derived from customs; 3,000.0uo from the sales of public lands: and $1,200,000 from miscellaneous and incidental sources, including the premium on the loans, and the amount paid, and to be paid into the treasury on account of military contributions in Mexico: and the sales of arms, and vessels and other public property rendered unnecessary to the government by the termination ol the war: and A20,f.9ft,435,3o from loans already negotiated, in eluding the treasury notes funded, which, togeiher with Ihe balance in the treasury on the 1st of July last, make the sum estimated. The expenditures for the same period, including the necessary payment on account of the principal and interest of the public debt, snd the principal and interest of the first instalment due to Mexico on the 30th of May next, and other expenditures growing out ot the war. to be oaid durim? the crea ent year, will amount, including the reimburse ment ot the 1 reasurv Xvotes. to the sum oi ,- 195,27) Ob, leaving an estimated balance in the 1 reasury, on the 1st ol July, 151, oi j-' ;:.; 643 84. The Secretary of the Treasury will present as soon as required by law, the estimates ol the re ceipts and expenditures lor the next fiscal year. I he expend, lures as estimated for that year, are f 33.799.102 la lor tlie interest on tlie public debt. and $3,000,540 for the principal and interest due to Mexico on the 31st May, lrxi; leaving tbP sum o 25.874,Of0 35, which, it is believed, will be ampli tor the ordinary peace expenditures. The operations of the tariff act of 1S46 have lcen such during ihe past year as fully to meet the pub lic expectation, and toconhrm the opinion t-ieto for expressed, of the wisdom of the change in out revenue system, which wss effected by It, the re ceipts under it into the Treasury, lor the first fiscal vearatier lis enactment txceedod by tne sum ot s.O44.40J ov-ioo trie amount concciea uunn.f tut last fiscal year, under the tariff act of 1842, ending 30lh June, IMo. Ihe total revenue realized trot the commencement of the operation on the 1-tol Decem!er, ltfi, until the close of the last quarter on the 3oth of September last, being twenty-two mouths, was $5,64, 563 79-100, being a much larger sum than was ever before received from duties, during any equal period under the action e.f highly protective, and prohibitory duties-the revenue has been increased the taxes ou tlie H-ople Inn diminished they have een relieved Iroi.i the heavy amounts, with which they wert burdened under former laws, in ilie form ol increased prices, or bounties paid to favored classes and pursuits. The predictions which were made that the Tariff act, ot lB4b, would reduce the amount cl lhc-revenue below that collected under the act of 1;4 !. and would prostrate the industry and business, ami destroy the prosperity of the country, have not been verified. With au nicreaseu ana lucicgsing u-ve line, the finances ale in a highly tiouiisluiig evoditioit. Agriculture, commerce and navigation, are prosperous, and other products, are much less in junously effected than was to have been anticipated from die unprecedented revulsions, which, during the last and present ypar, have overwhelmed the industry, and paralyzed the credit and coin merce of so many enlightened nations ol Euro. Severe commercial rpvnlsinns ahrna.t havt. lways heretofore operated to dppress, and often to - ettect, disastrously, almost eviy branch of Amen I can industry. The temporary depreion of a por- j tion of our inaiiiitHcluring nitere-ts is ihe rrWt of foreign causes, and is lar less severe than has prevailed on all former similar occasions. It is believed that, looking to the great ac-?rf-pste ot all our interests, the whole country was nevermore prosperous than at the present peiiod, and never more advancing in wealth and population. Neither the lore inn war in which we have been involved, nor the loans which have absorbed so Urge a portion ot our capital, nor the commer cial revulsion in Great Britain in 1S47 nor the paralysis ot credit and commerce throughout Eu rone in 1646. have atiected iniuriaiii.lv to anv con tiderable extent any e.f the great interests of the country, or arrested our onw ard march to great ness, wealth, and power. Had the distuibancesin Em one not occurred, out commerce would undoubtedly have been still more extended, and would have added still more to the natural wealth and public prosperity, but o. twithstanding these disturbances, the operation ol the revenue system established by the tanfl ot l w4ti. has been generally beneficial to the country, but no change in its provisions is demanded by the public policy, and none 19 recommended. The operations of tlie Constitutional Treasury established by the act ol the bin ol August, 1;1. in tlie receipt, custody, and disbursement of the public money, have continued to be successful Under this system, the public finances have carried through a toreign war, involving the necessity t.l loans, and extraordinary expenditnres, and requiring distant transfers, and disbursements, without embarrassment, and no loss has occurred of anv ol the public money deposited under iis provisions Whilst it has proved to be safe and useful to the governmen t, us ettecis have been most beneficial on the country, it has tended powerfully to secure an exemption from that inflation, and fluctuation of mo paper currency so injurious to domestic industry, and rendering so uncertain the rew ards of la bor, and is believed to have largely contributed to preserve tne whole country from a commercial revulsion, such as often recur under the bank ueposiie system. In the year 1347, the was a revolution in the business of Great Britain of great extent and intensity, which has followed by failures in that Kingdom, unprecedented in number and amount ol losses. This is believed to be the first instance, when such disasters, bankruptcies occurring in a country with which we have such an extensive trade or currency. We remained but little affected in our money market, and our business and industry were still prosperous and progressive. During the present year, nearly the whole continent of Europe has been convulsed by civil war, and revolutions, attended by numerous bankruptcies, by an unprecedented fall in their public securities, and an almost universal paralysis of commerce and industry, and yet, although our trade. au um prices ui our products must nave oeen somewhat unfavorably affected by these causes, we have escaped a revulsion; our money market is -parauveiy easy, ana public and private credit have advanced and improved. It is confidently believed that we have been saved trom their effect by the salutary operations of the constitutional treasury. It is certain that if the U,tXXD,000 of specie imported into the country, ,i'rLn8. the fiscal year ending on the 30th Jun;1847, had gone into the banks, as to a great extent it must have done, it would, in Uie absence of this system have been made the basis of augmented bank paper, issued probably to an amount not less 60 or .0,000,000 dollars, producing as an inevitable consequence of an inflated currency, extravagant prices for a time, and wild speculatien, which must have been followed on the reflux to Europe, he succeeding year, of so much of that specie, by the prostration of the business of the country the suspension of the banks, and most extensive bankruptcies. Occurring as this would have done, at a period when the Considerable In.r.. f . . eouireu ior uistani disbursements, and when the banks, the fiscal agents of the government and the depositories ot the public money, were suspended, he public credit must have sunk, and many millions of dollars, as w as the case during the warol j , . .. . -v- .u vra rurLic x r ir - urcu rncriiuu in discounts upon loans, and upon the depreciated paper currency w hich the government would have been compelled Under the operations of the cnnminitinci ,. sury, not a dollar ha h.n l..o, i,,, ,k j r- . - -- ' tiic u pie, iniioil The loans required to prosecute the war with ninicu, were negotiated by the Secretary of the V1"'' oovepar, realizing a large premium to k-" i mo. in. l ne rpsiraininir Mpr ni ,i.- ...... tern upon the tendencies to excessive paper issued Jy the banks, has saved the government from heavy losses, and thousands of our business men from osuaruptcy ana ruin, i he system has been tested or ine experience ol the last iwn e, nri .. . , .c i 7 . "i , unu ii ia 1 ICtMttfk Ukiin.i ....I... ... i l y . i : , U1B " snouia remain undisluihed. 1 he modifications of the details of this ...e-sun-, involving inepr.nc;ple3 heretofore recommended, are again presented for your farorable twiiomci oui'il. In my message of the 6,h July last, transmitting to Congres?, the ratified treaty of oeace with Mexico, 1 recommended the adoption of measures um speeuy payment oi the public debt: in reiterating that recommendation, I refer you to the considerations presented in that message in its support. Hie public debt, including that authorized to be negotiated in pursuance ofexisting laws, and including Treasury Notes, amounted it that time to $60,776, 450 41. Funded stock ol the United States, amounting to about hall a million of dollars, has been purchased as authorized bv law. s.n. th public debt has thus been reduced, the details of

which will be presented in tne report of the Seer.

BIT ,,1 11IC 1 ICasUIT. Hie est. mate of extx-mlitnre f.,r ,!, ri year, submitted by the Secretary of 1 reaiurv.'it is beneved, will be ample I. r sil ne cej,arv It Uie apr.raunation made l,v (imcr v,-n . , - - -"--si i-snail ii'tt sJl - ceed the amount ostima!.!, the means in tl T... sury will be sufficient t dc;ray ail the ei,tn..,.. the government; lo pay t tl the next iiut.lm...., ,000.000 toMcXICO.wbiel. w-.ll I. I . JOtli ot May next; slid Mill a con.ijerable surah! ...... ..,.,, ,,. s.io.iiu i-api'iiea to the further purchase of the public s'oek. and reduction of n. hi; should enlarged S i.toi nations be made. th. ncctssary consequence w ill be to wtporiethe pav n ..... t .1. I 'l-i ' . r .... ... o. u.c ui.... m. iiouitn our oebt. as compared with that of most otlier nations in tho ..,rlH ,. mall, it is our true roller, anri in br,..., '.. the motives ol uur insutuuuiis Uiai we should .re- --. .u me uiiu, mt mre sjciacie 01 a great republic. p?cMiiig vast irs-'urces and wealth, whol ly exempt trom lmJebtcdnisj. This would add stib more to our .trer.jjili, and give to us a still more commanding rjosiii'ir. amine ihn .. ,.t earth. " The public extnat-.ure should 1 c-.r,r,m;i and lie confined to such ob tcts a areclear'w with' ... n.t- po--ir 01 ..iii:n-sr n,i ueri as are no; - .i. ... ... i-. - . ' absolutely demanded, should be postponed; the payment ol the public debt a', the eat',, est practicable period should tc a eariii;l principle cf our public policy. tor the reason assigned in niv asi annual mosage, I repeat my recommendation that a branch c.i the mint e't the United Stntrs he etablis bed at the city of Now York The importance of this rnes-' lire is greatly im reused ty the acquisition ol it,, rich mines of pn citis meiala in New Mexico ai,i Calilornia especially the inner. 1 repeat the recc.mmcndH'ion. hpT.Mnf.iw. n,.f ; favor of the graduation and reduction in tin- uiu ol such of the public lauds, as have twn lona ..1. fcred in the market, and l-.fivp remained ,ir.,.l,i and in favor of e Trending the rights ot pre-emption to actual settlers on tne unsutveycU, as well as i surveyed. 1 he condition, and oppranons of the army, ani the state of the other branches under supervision ot the war department, arc: satisfactorily pret.-ntesi in the. accompanying report of the Secretary ct War. On the return e.f peace, our forces wi-ie Withdrawn Irom Mexico, and the volunteers, and thai portion ot the regular armv cr.gared for the war, were disbanded hders have fnen issued l..r sta Honing the forces ol our permanent eslabli&hmer,; at various points i:i . ur extended country, where troops may l re qnireil. OwinT to the re'motenen of some of these positions, the detachments hattf not reached their disiuiaiion, maw iihsiaiiding tLd limits of our ciuiutry, and t!; r.rw terri'ories. it 13 confidently Mieved that our present military establishment is sulit. lent Mr ail cxigein.ici, so ionv as euir peacelul relations remain 111;, listurted. Of the amount of mili'arv contriUuions collected in .Mexico, ihe sum l 7c(,oj0 dollars was applied towards ihe poyim til ol the first instalment due under ihe treaty with Mexico. The further sum of $. Ir .'M'-t W has ben paid to the Treasury, an unexpended balance shll remaining in the hsm'.s ol diobiiisiii o.c. ti;J t'i w )io ere Tirage; in the colli c ion of those monies. After the'proe tauiaiion .1 peace, 110 lander d.srurse.iueute wei -made ol any uim .p. u Jed inoii. j a: isiiov from ih.s soiiice. The balances on hand were directed to be paid into tbe Ttfa-urv, and individual claims will remain nni.iii -le.i until Congress sLali authorise their settl. ni. ii. snd payment. Their claims ar not 1 o.isi.I. .s'.'i in tinmS r. nr " amount. I rt.-.urim-f.l ht vour fsvorabie consideration u, sui'Kesiions ! the t creiaryi l War and tiie izer leime .. ii.. ) in i.srJ to l.-.eis'.sikn on thij subject Our Indian relations are prcented in a most taveiableVii vi 111 the icport Iroin tlie War Ucpannu nt The v is.!..!.i ..I ..nr Mili, y m regard to ti.u tribes U'iiiini oi;r Km. Is, .s cleprli' manifested L, their nut i uvea and ispioty improving condition ' A im-.t important treaty y ith lite Mcnomin-; has , en recently negotiated bv the Commissioner ol Indian attaiis .;i person, by which all their land in the State ot Wirconsiii, l ing about 4,000..X j acres has hern ceded ti the United ftstrg. Thii treaty will be submitted to'the Jenate for ratification at an early period ol your session. vv Hh'ii tbe Inst tour years, 1" pr.rtnnt trcitic have tern nrpot;,tea with dtfierent India:' tribes, and at a cost 01 sl.tslJ.e-oO; lndiau lends 13 tlicaiiiountot inoie ihan lr,io,oi'u have Uen ct--led to ihe Uniti d Tlate-', nnd provision ha been made for settling in the country weel ..f ihe Mississippi, the iiibes w Inch uiLU;ned ilusiaigc extent of domain. The. title to all the Indian lands w ith in the several States of the Union, w ith the exception nt a lew smalt reservations, is now extwguiid.ed, siiid a vast rePion r.piii tor seuiemEnt ani cultivation The accompanying report ! ihe- Secretary cf the Navy gives a satisfactory exhibit r.f the operations and condition ot that bianch of the public service A number ot small rescl. nti.nhic f.ir entering the months ot rivers, w ere judiciously purchased during the w ar and ga'.v gretr elheirbcy to the squadron in ihe loill ot .Mrv.ee- i.in :hf return 0: peace', when no bner ui:ble t..r ns-.nl purpose and liable to consisnlilettiioniiioii.U.ey were sold, and the mom y pla .-. .1 01 ii,.- Treasury. The number of men in ihr Naval 'crt-ice authorized by law during the War has been reduced ty discharges below il,e iiisxiinuin t, ed tor the peace establishment Adtquav .;to.,b..ri: are maimained in the several quarteuol the Globe wherecrperieiice lias show n th.-ir sctwcis may be nioit usefully employed, and ;be Naval : nee w as never ilia condition f higher discipline or reair efriciencj . 1 iiiVHc attention .o i:ie reeomi.icnJalion ol the Secretary of the Navy, i n tho subject of the Marine corps. The reduction t.t the corps nt the end of the war, requited that I ur edlicers i t the thrp lower grades should ho dropped lioiu the tolls. A board of officers made the selection: and those designated were necessarily dismissed, hut without any alleged fault i concur 111 opiiiiuti wuh ttie Secretary, that tlie service would n? improved by reducing the number of !sn Is-ni'-ti, snd increasing the Marines. Such a tn'-ns'in- . ui.l jusniy au increase of the number l officer to the extent l thp reduction by dismissal, and stilt iIip Corps would have fewer office-rs than a orresiiondiii? number 01 men in the army. The contract lor the transmission of the Ma:I :n stenmtlci's eotivc-iihle itm war Rtenniers, promise t i realize all ih benehts lo our Commerce and to the Navy, which were anticipated. The first steamer ilius secured to the government w as lainicl.id in January, 1 Si?. There are now seven: and in a-iother year there will probably be not less lhau seventee n hiloat. Vhiie this great national advantag-: is secured, our civil communication and intercourse a-c increased anrl promoted wi;h Germany, Great liriiam and other parts of Europe, with ali the countries of tlie West Coast of our Continent, and especially with Oregon and California, and between the Northern and Southern sections of tiie United Siatts. Considerable revenue may te expected from postage; but the ronnec erl line from Chnnres and thence across the Isthmus to Oregon, cannot fail M ezert a bener.ua! intense run now to be estimated, in the ir.ie rests of ihe Manuiicturcr, Co.i merce, Navigation, and Currency of the U. States. As an important part of the sya.tm, I recommend to your favorable consideration, the establishment of the proposed lino of s'esmcrs between New Orleans and Vera Cruz. It promises the most happy results in cementing freudsliip between the two Republics, and in extending reciprocal benefits lo t'-e trade and manrtfae-furersof both. The repoii 01 tne rcs. Master General will mke known to you liieoperauuns ot that department ioe tbe pa-t year.: . . . It is gratifying to find the revenues ot the department under the "rates of postage now established bylaw, so rapidly increas ne the gross amount ot postsjp during the 'nt fipcal year amounted to !,- 371 0,7, exceeding the annual average receipts for the nine years immediately preceding the passage of the 3i of March, 18C, by the sum of 6,4a2, and exceeding thp amount received for the year ending the '.'oih ol June, lei ., by the sum 01 124- . . . ,. .. The evprndilnre? for the- ypar excluding tne sum of $4,672, allowed by Coneress at its last session to individual claimants. &c, and including the sum of JlOO,"! pid for the services of the line ot steamers between Bremen and New York, amounted lo .4,ly,'-4'', which is le-s than Uie average for the nine vests previous m tiie act of 151 by f The mail routes on the imix day ot June last, were 103,203 miles in extent btinfran increase during the last yea, of 'W0 miles. The mails were transported over them during the same time, 41,0U.579 miles, making an iucres?p ol transportation for the year of 2,lC4.t.?0 miles, whilst the expense was less than that of the previous year by !.,23f.. ... The iucrease in the mail traneporlauons vvittnn the last three years has !en :'..?73,310 miles, whilst the expenses were reduced $4.".6.77 making an increase ol service at the rateol 10 per cent. During the psst vear there have been employed under contracts with tlie Post Office Department, two Ocean steamers, in conveying the mails monthly between New York and Bremen, and one time en f!i"nko- '', oerform:nf semi-monthly ser vice between Charleston and Havana; ar.d a con tract has been made for the Iransmiesion ot 1 acme mails across the Isthmus trom C hagres to Panama. Under thp authority ffiven to the Seeretarv of the Navy, three Ocean steamers have been constructed and sent to tne racinc, ana are expected to enier urxin the mail service between Panama ana Ore gon, and the intermediate points, on the 1st of Jan uary nexr, ana a lourm nas Deen engaged oy n' .jj. for ihe service between Havana and Chsgres ' that a regular mail line may be kept no after time between the United States and our territories on the Pacific. Notwithstanding this great increase in the mail service, should the revenue continue to increass tb9 present year, as it did in the last, there will be rf'