Indiana State Sentinel, Volume 6, Number 26, Indianapolis, Marion County, 17 December 1846 — Page 4

h INI (hat thi eource waa beat calculated to have en. able J tha United Stales to extend to them the moat liberal jesliea. Do the 30th of December, 1845, Gen. Herren reaigned. he prei lency. aud y ielJed op the government to Gen. Parade wi&out atra;sle. Thu a revolution accompfuheJ solely by the irmy commanded by Parmtlt, and the aupreroe power in Mexico passed into the hands of a military usurper, who waa known to be bitterlj hostile to the United State. , , Although the nroapect of a pacific adjustment with tha

new government waa onpromiaing, from the known boa- i tility of its head to the United states, yet, determined that nothing should be left u..don on our part to reitore friend-. , , -

ly relauons between the two countries, our minister was "J f-- .uVBU ..iU instructed to present his creJedüaU to the new government, i ' for.re ,m!,7 ,im penme. it in the end ecoand ak to U accredited by it in the diplomatic character j "" . ? lh -h,,"J command it removes the necessity in which ha had been commissioned. These instructions of "i'W'n lrS standing army in time of peace, and be executfdby bis hole of the 1st of March. 1846, address-, F0!" lh't,our, r!' I lhe" "titutions, and are ever d to the Mexican Minister of Foreign Affairs, but bis re- reJJ '? Jef'"J ,nJ frote.cl them' . . quest was insultingly refused by that minister in bis an-! h',at lhe w,r .w." ,n a ,'oar8 pf "S"00 nd sucwer of the I2ta of tf.e smie month. . No alternative re- 1CMfful P'out.on being st.II anxious to arrest its evils, inained for our minister but t demand Lü raisnorts, and , ,"J coniderin5 that, after ihe brilliant victories cf oar return to the United States ; anna on the eighth tnd ninth of May last, the national Thus waa the extraordinary spectacle presented to the j honor could not be c6mpromilted by it, another overture civilix -d world, of a government, in vio'ation of Us own ex-!w" md , Mf x,co-l,7 "J d.recuon, on the twenty, press agreement having twice njected a minister of peace. irenth,lf JJT lt. to terminate hostil.tie. by a peace invested with full power, i adjust all the existing d;lTrr- ;Jrt. ,nd hon; both countries. On the thirty-ßrst nce. between the two countries in a manner just and hon- of Au3sl (.!Io";!.n' ,he Mexican government dec med to orable to both. I am not aware that mo3ern history pre. ept th.a fr.cndly overture but referred to the dec.s.on aenU a parallel ease, in which in time of peace, one nation ? M"'"n tigress to be assembled in the early part has refused even to hear proposition, from another for ter-1 of lhe Pre1se,!t mo"Vh- u 1 7". herewith, a minating exiting Uifficu'iiei .between them. 1 r(,M o lhe l11." r brety of ötjte, propos.ng to

Scarec a hon of !iiiiir.ff our difficult ea. even at a Vemote day, or of preserving peace with Mexico, could be i heruhcJ Eile Parades remained at t! e head of the government. He bad acquired the supreme power by a military revolution, and upon the most solemn pledges to wage war against the United States and to reconquer Texas, which he claimed as a revolted province of Mexico. He bad denounced as guilty of treason, all those Mexicans who considered Texas as no longer constituting a part of the territory of Mexico, and who were friendly to thecaue of peace. The duration of the war which ho waged againft the United States was indefinite, (cause the end which he proposed of the reeonquest of Texas, wss hopeles. Deaides, there was good reason to believe, from all his conduct, that it was his intention to convert the republic of Jlexico into a monarchy, and to ca'l a foreign European prince to the throne. Preparatory to this end, be had during his short role; dostroyed the liberty of the press, tolerating that portion of it only which openly advocated the establishment of a monarchy. The better to secure the success of his ultimate designs, he bad, by an arbitrary decree, convoked a Congress not to be elected by the Tree voice of the people, but to be chosen in a manner to make them subservient to his will, and tj gite him absolute control over their deliberations. Under all these circumstance, it was believed that anj revolution in Mexico founded upon opposition to the ambitious project or Parades, would lend t j promote the cause cf peace as wej 83 prevent any attempted European interference in the alTiirs of the North American continent l-oth objects of deep iuterest to the United States. Any auch fjreijn interference if attempted, must have been resisted by the United States. My views upon that subject were fully communicated to Congress in my last annual message. In any event, it was certain that no change whatever in the government of Mexico which would deprive Parades of power would be for the worse, so far as the United States were concerned, while it waa highly Iroba'oIe that any change muH be f r the better. This was the state of affairs existing when Congress, on the thirteenth of May last, recognized the existence of the war which had been commenced by the government of Parades ) and it became an object of much importance, with a-view to a speedy settlement of our difficulties and the restoration of an honorable peace, that Parades should not retain power in Mexico. Before that time there were symptoms of a revolution ' I j o ' - in Mexico, lavored, as it was understood to be, uy tlie more liberal party, and especially by those who were op- , jiuwu iu luieigu iiuui irjcnte auu 10 iuc inuuuii.iiii.ai luiui ul government, ainta Anna was tuen in exne in iiavana, having been expelled from power and banished from his countiy by a revolution which occurred in December lc'Il ; but it was known that he bad still a considerable party in bis favor in Mexico. It was also equally well known that no vigilance which could be exerted by our squadron would, in all probability, have prevented him from effecting a landing somewhere on the extensive gulf coast of Mexico if ho desired to return to his coun try. cv : He had openly professed an cntiie change of poll-! had expressed his regret that he subverted the feder- : at constitution of 124, and avowed that he was now in (

iavor oi iu restoration, no n.iu puuuciy uecuicu ma i nougn it cu not Decome necessary lor the President to ! peace miy De ueemeu usciui or proper, dui wnicu arc not inbostiliiy, in the strongest terms, to the establishment of a ! u$e tbese appropriations, yet a state of things might have ' dispensable for the public service, may, when the country is monarchy, and to European interference in the affairs of ! irj8en ; waich it would have been highly important for ! nSSed in foreign war, he well postponed to a fuluie period. hi country. Information to ihis effect had been receiT- I him t0 d(J and the wisdota of making them cannot be i By the observance of this policy at your present session ed, from a source believed to be reliable, at the date cf ,,,,,,, If u fu.,u,t thfl, ,u. 5 . . i la.ge amounts may be saved to the treasury, and be applied

the recognition of the existence of the war by Congress and was afterwards fully confirmed bv the receipt of the despatch of our consul in the city of Mexico, with the accompanying documents, which are herewith transmitted. Desides, il was reasonable to suppose that he must see the ruinous consequences to Alexico of a war with the

United States, and that it would be Ins interest to lavor ,uo lu vvuiuwcuu mo measure at mat time sun exist; and . congress appropriations are proposed tor numerous oujejts peace. j I ss'n submit tlie ulject for your consideration, and tug- j which may or may not be made, with ut materially afIt was under these circumstances and upon these con- ; gest the importance of early action Upon iu Should lhe feeling the public interests and these il is reccommended siderations that it was deemed expedient not to obstruct j appropriation be made, and be ndl needed, it will remain 1 should not be granted. bis return to Mexico, shonld be attempt to do so. Our in the treasury : should it be deemed proper to app'y it in j The act passed at your last session " reducing the duties object was the restoration of peace ; and with that view, j whole or in part, it will be accounted for as other public on imports" not having gone into operation until the first no reason was perceived why we should take part with . expenditures. 1 0f the present month, there has not been time for its pracParades, and aid bim, by means of our blockade, in pre- ; Immediately after Congress had recognized the ex is- tical effect uopn the revenue, and the buisness of the counventing the return of Ins rival to-. Mexico-- On the con- tence of lhe war wjth ,fe,iCB my aMention wa, directed try. to be developed. Il is not doubUd. however, that the

venting the return of his rival to-. Mexieov- On the contrary, it was believed that t ie intestine divisions which ordinary saucily could not but anticipate as the Iruit of; c3anu Anna's return to .Mexico, and his eon tea t with i Pa-

ed Statea. Parades was a soldier by profession, and a : Uet,J w!lh.,,,fl ower of ,h! lwenl,e,h of October, 179o, , the act of IS 12, which it superseded. 1 he leading pnncimonarchistin principle. He had but recently before been , u"der which the Citizen and subjects of either nation who ' pies established by it are. to levy the taxes with a view to successively in a military revolution, by which he bad ob- j 'ball take commissions or letters of marque to act as pri- j raise revenue, and to impose thetn upon the articles importained oowef: He was the sworn enemy of the U. State):! vateeia against lhe other "shall be nuiiuhcd as pirate." ! ted according to lheir actual value.

with which he bad involved his eouniry in the existing war Santa Anna had been expelled from power by the , was known to be in open hostility to Parades, and j army to the commander of our naval forces in lhe Oulfon the fifteenth day ol Slav last, only two days after lhe exist-' .ftf ih. w.r hU hen rfrn.nized bv Con're'B lo ' epce or the war ha-i been ret ognized Dy ongre a, to . place the coasts of Mexico under blockade he was di-; rected not to obstruct the passage ol fcanta A niia to Mex-1 ico should ha attempt to return i Ä retölutroö took place in Mexico in the early part of j August followinjr, by which the power overthrown, and he bas since been ba countrv and is now in exile. Shortly afterwards, Santa Annarefurned. It remains to be se'er, whether hi. return miy not yet prove to be latorable to a pacihe ad-, jrjstment of the existing difficulties, it being manifestly his interest not to persevere in the prosecution of a war infs.l k V, ruin , ...nl.ul. , n,.r,.nS.., uUi u.0,,u ; ...V,, 1 ..v .UT . f-.f --- , uru 111 recunqueai in itlül iu nie iiuiuc. iau e aiu'

publicly pledged against loreign intervention ana trie re- uers lor this purpose were immediately transmitted from Purpose or ramus revenue, mit u an.wii advantages to uvorao classes, atorauon of monarchy in Mexico. In view of these facts that government to the suthoritiesof Cuba and Torto Rico l,ln 'g mnj.-rhy of tlieir fellow citiiens. Those e.u- , . . a - :o-..,l ' b . . umuuiir. vi wuua auu m. unii liim p oyed ia agriculture, tnechanical pursuits, commerce, and nsvigntion, ana circumstances it was, mat, wnen oraers were isrueu tj eierl their utmost v ? me In irVantinrT n alllmrtflal urara Skfniil!awl In svinlrlKrit frrun ihia aMalkatnsa In ava.ll tha kS7.

de. remained in power ,t is morally certain lhat any pa- lhcir conJuct not to have been observed, and as ,e..M fi adjustment would have been bemeh-s,. v ! these Commis.ion. afe in blank, to be filled up with the ' Lpon the Commencement Of hostilities by Mexico 1 nama cf ciliien, anJ guf,jects cf a, nalion, wo m.V be : tlieni an advaataR. which no other pursuits poas; but of UiUnone j azainst lhe Uwflea fctaleS, the indignant spirit ol Hie n.t- ... r.,!, iJÄ .k. . u 1 1 1 ' otliers will cotnnUin hecause lhe duties levied are for revenue. Tliese tion was" at once afouscd. Congress promptly responded w,I1'ng l. P"'"5 lheuj. "hole proceeding can be teyenw d,ItlMj u,cMs frcishu and charges, which the i.np,,tr tn ihn xnprtitions rf the eountrv urd bv the act of tfie con'farU s a mltation to all the freebooters upon earth, t must pay before he can come in competition with the home rm.nufacto tlie expecraiions CI ttie Country, URU, uy I is UCl m Hie willing l0 try for the rrivilece to cruise airainst ' turer H" tarxets, amount on nearly all our leading branchesof thirteenth ofMay last, recognized the fict lhat war ex- j '.''' , lor ine privilege, to cruise against . more7han one-third of the value of tlie imported ani- I isted.bythe act of Mexico, between the Lniled Slates ! American commerce. It will be for our courts of justice cie,and 111 wine caes to nlmoet one half of iu value. Wim such ad-1

and that Republic, and granted the means necessary fr i 10 "eciue wnetner, under such circumstances, these Mexi- vantages, it is not doubted 1 hat our domestic manufactHrers will conits rigorous ?ro.ecu,ion. Being .nvo.ved in a w.r. thus , n Ictler, of marcjue and reprisal shall protect those who r, Commenced by Mexico, and for the justice of which on accept them, and commit robberies upon the high eas un- Indeed, m far from reouiring even incidental revenue duties, our man-

our part we may conhdently appeal to the whore world, I resolved to prosecute it with the utmost vizor. Accordingly, the ports of aiexico orr the Uuil and on ine 1 aci- ; nc nave neen piacea unaer uiocnaue, ana uer wmwij . invaded at several important points. The reports from I U . sTA A m f V ..as . s-t si IV s v av am I 1 1 nF. rn V Oil ioc icMlliiic..,.ui u. ... ..-.j j more in detail of the measures adoj. ted in the emergency I rn which our country was placed, and of the gratify inj j results which have been accomplished. The various coftfrnns of the nrmy have porf-irmed their duty under great disadvantages, with the most distinguished .kill and courage. The victories of Palo All and ftesaca do la Palma, and of Monterey, won ngninst j greatly superior numbers, and against most decided ad- , Tantages in other respects on the part of the enemy wer brilliant in their execution, and entitle our brave j officers and soldiers to the grateful thanks of their coun try. The nation deplores the loss or the brave oliicers and men who have gallantly fallen while vindicating and defending their country's) nzhts and honor. It is I subject of pride and satisfaction tTtat our voFun- j

teer citizen soldiers, who so promptly responded to their j, ,eCommend that Congress should immediately provide by country's catl, Willi an espenence of tho discipline of a ! aw for gIintin letters of m'irque and reprisal against vescampof only a lew wceka.liave borne their part in the hard j eis under the Mexican flag, it is true, theie aie but few fought battle of Monterey with a constancy and cniir5! , if any, commercial vessels of Mexico up'. nttie high seas;

rnial t lhat tf veteran troops, and worthy of the highest admiration. The privations or long marches through the enemy's country, and through a wilderness, have been borne without a murmur. I5y rapid movements the province of i"Ve W Mexrr-n, with Santa Fe, its capital, Ira b;-rt CapturedT" wiiiibut bhrndshed. The navy has co-operated with the army, and renJered important services; if not so brilliant, il is beennse the enemy had no force to meet them on their own element, and because t the defence which nature has interposed in the difficulties" of the navizticn on t'le Meiicsn coast. Our squadron in the Pacific, with the eo-operation of a gallant officer of the arKJ, and a small foref histily collected in that distant country, hate acquired bloodless possession of the Cali-. fornias.and the American flag has Leen raised at eWry important point in the province. I congratiiiWyVir on the success which lias thus atten-' ded our military and naval operations. In less than seven months after Mexico commenced hostilities, at a time selected- by herself, We have' taken possession il many of her principal ports, driven back and pursued her invading army, and acquired military possession of tho 3Ieiicnn provinces of New Mexico, New Leon, Coabuilaramautipasj.acd the Californias, ' territory larger

in extent than that embraced in the original thirteen en million three bandied and fes tj-six thousand cix hundred Statea of the Union, inhabited bv a considerable popula-'aod twenfy-thiee dullata of foiei'n ai tides, lion, and much of it more than a"l!iou.tnI miles from the1 The rtccipts into the treasury for the same year were

nninttf it Mrhirli we Tiad tit stritt, du r forces and comm.n. ..r mniV,Pnr. M v ik. WL,L th. imnort Un i ... . .i. . w i -i - . j ' i miri irniiR bis inn riir in w sitai iidfii a iii fin. i Well may the American people be proud of the energy and gallantry of our rrgular and volunteer officers and soldier1. The events of these few months afford a gratifying proof that our country can, under any emergency. ! confidently rely for the maintenance of her honor, and the iietence oi oer rignta, cn an inactive iorce, reaay at all . . ., - .ri , m vo.uni.n,, ,o rcwnquMtt tue comtons oi noma lor "-"I s''"". .uo ciK.n goTcru merit, and of the reply thereto of the Secretary of Stste. The war will continue to be prosecuted with vigor, as the best means of securing peace. It is hoped that the derision of the Mexicin Congress, to which our last overture has been referreJ, may result in a speedy and honorable peace. With our experience, however, of the unreasonable course of the Mexican authorities, it is the part of widom not to relax in the energy of our military operations until the result is made known. In this view, it is deeim d impurtant to hld military possessions of all the provinces .which hava been taken, until a definitive treaty f peace shall have been concluded and ratified by the two countries. The war has not been waged with a view to conquest; but having been commenced by Mexico, it has been carried into the enemy's country, and will be vigorously prosecuted there, with a view to obtain an honorable peace, and thereby secure ample indemnity fur the expenses of the war, as well as to our much ii-jured citizens, who bad large pecuniary demands against Mexico. Dy the laws of nations a conquered territory is subject to be governed by the conqueror during his military possesions, and until there is cither a treaty of peace, or he shall voluntarily withdraw from it The old civil government being nccesarily superseded, it is the right and duty of the couquerer to secure his conquest, and to provide for the maintenance of civil oiJcr and tha righla of the inbalita ,U. This right has been exercised, and this duty performed, by our military and naval commanders, by the establishment of temporary governments in some of the conquerrd provinces in Mexico, assimilating them as far as practicable to the free institutions of our own country. In the provinces of IVew Mexico, and of the Californias, little if any further resistance is apprehended from the inhabitants to the temporary governments which have thii. from the necessity of the cade, and accorJing to lhe laws of war, been rslabliched. It may be proper to provide for the security of these important conquests by making an adequate appropriation for the purpose of erecting fortifications and defraying the expenses necessarily incident to the maintenance of our possession and authority over them. Near the close of your last session, for reasons communicated to Congress, I deemeJ it important, as a measure for securing a speedy peace with Mexico, that a sum of money should be appropriated and placed in the power of the Lxecuuve, similjr to that which had been made upon two furmcr occasi0Ijg uuril)g e administration of PreeiJent Jtflerson On the twenty-sixth of February, 1803, an apprcpriation of two millions of dollars was made, and placed at the j disposal of the President- Its ot joct is well known. It ; was at that time in contemplation to acquire Louisiana j from France, and it was intended to be applied as a part of the consideration which might be paid for that territory. ' On the thirteenth of February, 1806, the same sum was ,-. . , ... ... . , in hke manner appropriated, with a view to the purchase i of the FloriJss from Spain. These appropriations were made to facilitate negotiations, and as a means to enable the Piesident to accomplish the important olj -ct in view. ' ""I " "V : i "V '7 l . i i "viun. joritiee in both houses of Congress. Indeed, in different ! forms, a bill malting an appropriation of two millions of; dollars passed each House, and it is much to be regretted ' that it did Hot become a law. The reasons which induced tence of lhe war wjth Mexico, my attention was directed ' l0 ho danger ,hat priTa,ccrg might be fitted out In the of CuU nJ pwrto R.c o h(j Cfmmerc of Su,M anJ , ..J f hnenlioa of It affords me pleasure to inform you that I have received ' assurances from the 5panh.h government that this article of lhe treaty shall be faithfully observed on ita part. Or- t la nt out nrivateer in ihn iliur.i .ai.wi it,. TTn;io,i nrffVstnlirinr n ! f ssmrif glateg vrom 0oj fai.i. .r Sll,- f0am flll. - ( , . ,E. UÜ 01 BPaln 1 m fully aallsüed lht h- rca wlU eiecu,rj in iu ,pirit we a4 it eUe tfje UDited g fl. - . ... . , . it ' ful y Pcrfjrm U lhe "hligationa x hich it impose cfn therri. laiotrnMou has been recently received at the Depart- , ucaiea 01 naturalization, signed by Ueneral fcatas, the pre- ; sent he.d of the Mexican governmenu Th. i., ed.. ' reason to apprehend that similar documents have been ' transmitted to other parts of the world. Copies' of these 1 papers, in tianslaiion, are herewith submitted. - r A..V ;1 . .V '.. ...... t nm ,u, .iciiuiiiiarica icquirtu oj me practice 01 civilder ineir authority, Irorn the pains and penalties of piracy, piracy. J If the certificates of naturalizition thus ?ranted be in tended by Mexico to shield Spanish sul iects from the cuilt and pQnisbrr.enl ol pirates, under our treat' they will certainly prove unavailing. Such a sul teifuee ' !. ... wou u oe out a weax device to dtleat the provision of a Büeinn treaty. v f tM4imm ' i ,k.i n... .k.,m : r:...t : i. I . iaw fjr tjje j "( . . j " 'J w (ha" Le f'u by law for the trial and punishment as pirate, of Spanish 30, escaping tne vigilance or their government, ind guilty of privateering asainst the United Claiea' no apprenend serious danger from these privateers. Our navy will be constantly on the alert to protect our commerce. Besides, in case prizes should be made of our American vessels, the Utmost vigilance will be exerted by our bfockadingr squadron to prevent lhe cap tors ironi taxing- mem into Mexican ports, and it is not apprehended that any nation will violate it. neutrality by suffering such prizes to be condemned and sold within its jurisdiction. and it is therefore not proDable that many American Driva leeis would be fitted out, in a case a law should pass authorizing this mode of warfare. It i, notwithstanding, certaia that uch privateers may render gwd service to the commercial interest of the Couatry, by recapturing our merchant ships, should any be taVen by aimed vessel under the Mexicjo flag, as well as by capturing these vessels themselves. Every means within our piwer should te rendered available for the protetioo of our commerce. The annual report of the Secretaty of the Tieasary will exhibit a detailed statement of Ills' condition of the finances. The impoits' for the fiscal year eitding on the- thirtieth of Jun lrt, were of the value of one bundled mhd twentyChe million sir hundred and ninety-one thousand seven hundred and ninety-seven dollars ; of which the amount exported was eleven million ihree hundred and forty-six thousand six hundied and twenty-three dollars i leaving the amount retained in the country for domestic dousumption one hundred and len million' three hundred and forr.five thousand one" hundied and seventy-four dollars. The value of the expoits for the same period was one hundred and thirteen million four bundled and eighty-eighl thousand five huodred and sixteen" dollars of which one hundred and two million one hundred Vtid forty one thousand' eight hundred and ninety-three dollkifcODiisted of domestic productions, and ele v.

01 1 ar.iuts w.is . . . ,. . . 'labor of the many, eninjed in other pursuits than manufactures, nished from the avsna blank commissions to privateers, and blank certi- a system so unequal and unjust has been superseded i.y the exUing

mnr M Nlftl. Ih.f Ihm -- I - J t d J FIlllKqiJUII 111 UW3 MIU Ml 1I r tVT( IIItK71lt. HU W Id V I UC UUffUC.l (111 LÜH

I7.ec! nations lor enmmmcionin nrini .n.l rcm.l.imn . rnenl. to lar Iroin lt. H will be nercrived. üv an exuniinnuon nt thn I

wcnty-Dtne mi.:iom lour Diinuieu aua didcij-oiuc iuc"

two hundred and nrtv-even dollars an I six cents; of which there was derived from customs tweaty-ix million seven . hundied and twelve thousand six hundred and iixtyseven dollais aod eighty-seven cents, from sales of public lands 10 million six hundred and ninety-four thousand four bund. e 1 and fifty-two Jul Urs and forty-eisht cents, and fiom incidental and miscellaneous souices $92,126 71. Theexpenditures for the lime period were twenty-eight million thirty-one thoussnJ one hundred and foartrea dollars aod tweuty cents, and the balance of the treasury on the first day of July lat wss nine million one hundred and twentysix thousand four bundled anJ thirty-niue dollars and eight tents. The amount of the public debt, including treaury notes, on the fit-t of the present month was twenty-four million two hundred and fifty-six thousand four hundied and ninetyfour dollais and sixty cents t of which the sum of seventeen million seven hundred and eight' -eight thousand seven bundled and ninety-nine dollars and sixty-two cents was outstanding oa the 4;hof March. 1S43. learing the ara iunt incurred since that lime six million four huodred and sixtyseven Ihouiand six hundied and ninety-four dollar and ninety-eight cents. In order to prosecute the war with Mexico with vigor and energy, as the best means of bringing it to a speedy and honorable termination, a fuither loan will be necessary to meet the expenditures for the present and the next fi-cal year. If the war should be continued a year loogvr, a iota to the amount of twenty-thiee millions of dollais will be required. This estimate is made upon the asumpt'un that it will be necessary to retain constantly in the tieasary four millions of dollars to guard agaiust contingencies. If such uiplu5 was not required to be retained, then a loin of nineteen millions of dollars wou'd be sufficient. If, however Congress should at the present session, impose a revenue duty on the principal aitichs now cmbiaced in the free li-t, it is estimated that an additional annual revenue or about two millions and a half, amounting, It Is estimated on the thirtieth cf June, IS4S, to fourmillijns of dollais, would be dcihedfiom that source, and the loan tequired would be reduced by thit amount It is estimated, al-io, that shoul I Congress graduate and reduce the piice of such of the public lands as have been lung in the. maikel, the additional revenue deiivcd fiom that source would t e annually, for several years to come, betweeu half a million and a million of dollars j and the loan requited may be reduced by that amount also. Should lhec measures be adopted, the loan required would uotrr taMy exceed eighteen or nineteen millions of dollais leaving iu the treasury a can-tint surplus ol four millions of dollars. The loan proposed, it is estimated, will te sufficient to c,cver the necessary expenditures, both for the war and all ether purposes, up to the thirtieth of June, 1S43; and an amount of this loan, not exceeding one-hulf, may be lequiied duiing the present fi-cal year, and the greater part of the lemiiuder duiing the first half tit the fiscal year succeeding. Ia oidcr llui timely notice may be given, and proper mcv sutes tiken to effect lhe loan, or sucU por'ion of it as may be tequired, it is Impoitant that the authority of Congress to make it, be given at an early period of your present sessi m. It is suested that the loan should be contracted for a pciiod of twenty years, with authoiity to purc.iase the stock and piy it off, at an earlier perioJ, at its maikst value, out of any surplus which may at any time be in the treasury applicable to that purpose. After (be establishment of peace with Afexico, it is supposed tliat a considerable surplus will exist, and that the debt may be extinguished iu a much shorter peiiod than that for which il may be contracted. The period of twenty yeir, as that for which the propped loan may be contracted, in pieferer.ee to a shorter perioJ, is suggested, became all experience, both at home and abroad, has shown that lows aic effected upon much better teims upon Ion; ti ne, than when'they ate reiü.buisable at hoit dates. Necesaiy as this meauie is, to sustain the honor and the iuteie-ts of the country, engaged in a foreign war, il is not doubted but that Cingtess will promptly authorize it. The balance in the tieasury on the first of July la-t exceeded nii.e millions of dj!la:s, notwithstanding considerable expenditures had been made for the war during the months of ilay and June preceding. But for the war, the whole public debt could and would have been extinguished within a shoit period ; and it was a pait of my settled policy to do so, atiu idus relieve tne pcopie iiom its ouieen, aua puce me government in a position which would enable it to teduce the public expenditures to that economical standaid which is most consistent with the general welfaie, and the pure and wholesome progress of our institutions. Among our just cauies of complaint against Mexico, arising out of her refusal to treat for peace, as well befoic as in whirh we have heen involve J... m'mrtm tKsi w is at t iininotlif mim mAnrar1 nn Kar nirt ara I kit awt tjee to our own people will make it proper that ATcxico should be held responsible for these expenditures. Economy in the public expenditures is at all times a high duty which all public functionaries of the government owe tJ ,he rP'e- This duty becomes the more impeiative in a lio of war. ha '"5. "d Mtraordwaiy expenditures become unavoidable. During the existence of the war with ATa;n . , . K- k..,i.,h riation. mart.. .tnt nrh ai aho!ntiv nrpr. r.,r its vigorous prosecution, and the due administration of the government. Objects of appropiiation, which ia time of to objects or pressing and urgent necessity, and thus thecieanon oi a coircsponain amount oi pujiic ueoi may lie avoided. It is not meant to recommend that the ordinary and necessary approprations for the support of the government should be withheld, but it is well known thit at eveiv session of try, to be developed. 1 idst policy which it ad Jtr,j anJ promoIe the eannot luiDly forc ciopts will add largely to our foreign the general prosperity. Although it The act of lt42, by the excessive rates of duty which it Imposed on ly'ced Se amwinMrnowted doc tug revenue By it the wies many articles, either totally excluded them from importation, or errat tea, and tnus amiinisiied instead ol proxes were imposed not for the legitimate mrmrm as I ImI 1a rvmlrlKfitsi fwruw lhia aMalkatnsa In ava.ll tha m.r,Rt and overgrown wealth of the eomnaraiivehr few who had Invested their capital in nMnufactures. The taxes were not levied iu prop. lM,n to the value of the articles upon which they were Imposed; out, widc, frolll iba Ju tute uutet uIr, wef in iiany' M9W te, d articl u , ,nd blgh a be ,,MVlcr tuesontli'eof necessity and low pnos, consumed by thegreat mass of the ,,,1. a wat &em, ,he hievitaWe effect of which was to relieve favored classes and the wealthy few fr.wwntrihuiingiheirj.is wmcn impom amies m tor tne neneni or injury or classes under the uneqml ami unjust system which has been reealed, have heretofore realised large profits, and many of thrin amaosed large fori?"" al,,tle eMnse J'.' manT rw . V.Ü v ef,nt. 'l to theni will have uo reasofr to complain hT llH-y hhnlt be fefjuired lo bear Uieir just proiKKtkin of the laves necessary to the support of govern- ! "lacturers in several Unding branches are extending their business, .i.ina .uiil..r. "f m.tt i-i .... mi it mnA .bill n n .1 ..flltntv t . j utaf giving evidence of great ingenuity and skill, and of their ability to compete with increased proiec! of succms, for lhe open market of the world. Domestic manulactures to the value of several millions of dot lira, which cannot find a market at home are annually exported to Mein countries. With such rates of duty as thane established by the existing law, the system will probably be permanent; and capitalists, who have made or shall hereafter make, theii investments In manufactures will know upon what to rely. The country will be satisfied with these rates because the advarrt.ices which the manufacturers still enjoy result necessarily fiom the collection of revenue for the support of go vernment. High proteciive duties, from Uieir unjust operation tiKn the m.if of the peoote, ennnot fail to Rive rise lo extensive dissatisfaction and eoinpl iint, and lo constant efforts lo change or repeal them, rendering all iiive-tinrnta in manufactures uncertain and precarious. Lower and more permanent rates of duty, at the some lime tliey will yield to the manufacturer 6 ir and remunerating profits, will secure him s'aiast frequent changes in the system, which cannot fail lo ruinously atFect his interests. Simultaneous with lhe relaxation of the restrictive policy by the U. Flaws, Great Britain, from whow example wa derived Uta system, bas relaxed hers. Hie has modified her corn laws and reduced many oilier duties to moderate revenue rates. After aces of experience, tlie statesmen of thai country have been constrained by a stern necessity, und by a iiu Mm: opinion having its deep fnundalkia In ÜM suflerines and wan la of impoverished millions, to abandon a system U;e elf.U of w hich was to build up immense fortunes in tlie hands of the few, and to reduce tlie Lilxwing millions to paupery and misery. Nearly In Um same ratio Ihit In Sur was depressed, capital was increased and concentrated by the llntuli protective policy. . Tlie evilj of the system in Great Britain were at length rendered intolerable', arid K has beert abandoned, but not without a severe simple on the part oi tha protected and favored classes lo retain the unjust! advantages vt'hirh they have so long enjoyed. It waa to be expected that a similar struggle would be made bv the same classes in the United States whenever an attemX was made to modify or abolish the same unjust system here., Tlie protective policy had been lo operation in tie United flutes fora'mueh sh'jrter period, and its pernicious effects were not, therefore, so clearly perceived and tell Enough, bowever, was known of these effects to induce its repeal. Il would be stmnge 11, In the face of the example ol Great Drittln, our principal fieign customer, and of the evils of a system rendered manifest in that country by king and painful experience, and In the tace of lhe immease advantages w hieb, under a more liberal commercial policy, we are. already deriving and must continue to derive, by snp-ilying her starving population w ilti food, lhe United States should restore a policy which she has been compelled to abanflbn, and Ums diminish her ability to purchase from us the (bod and other articles which she so much needs, and we so much, desire to sell. By lhe simultaneous abandonment of lhe protective policy by Great Britain and the United States, new and important maiketa bnve already beea opened for our agricultural and other products; commerce and navigation have received a new Impulse; labor and trade hare been teloased (nun the artificial trammels which have so king fettered them; and lo a great extent reciprocity, in the exchange of commodities, has been .introduced at th same time by both countries, gte.itly for the benefit of both. Great Britain has been dreed, by the pressute of circumstances at home, to a policy w lilcn has been upheld tr ages, and lo open ber markets for our uniuensa surplus of bread -stuffs ; and il is confidently believed that other powers of Europe will ultimately see the wisdom, if they bs not compelled by the pauperism and SutlerIcjs of their crowded population, to pursue a siaular policy. I

,-. a ....., b .IIU II . UiUll IJ ... ' I

Our farmers are more deenlv interested in maintaining Ihm raM siu! 1

liberal pulwy of the existing law than any oilier cla-a ot our citizena. They constitute a large majority of jur populaiion; and K is well known tbilwhen Ihey pro per, all other pursuits prosper also. Tbey nave heretofore not only received none of the bountiea or favors of goveraunit, but, by the unequ l operations of the protective puliey, have been made, by Um burdens of tniaimn which it imposed, lo contribute to the bounties v hieb have enriched others. When the foreign as welt as home market is opened to them, tbey must receive, as they are now receiving, increased prices for their product. They Will find a readier sal', and at better prices for their w heat, flour, rice, Indian corn, beef, pork, lard, butter, cheese, and o her articles which they produce. The home-market alone is inadequate to enable them to dispose of the immense surplus of ' IjoJ mail other articles sbicn tiiey are capabl ol producing, e- v at the most reJuced pr.ces, for the manifest reason that they canuot be consumed in the country. The United Slates can, from their immense surplus, supply not only the home demand, but the deficirncies of iooj required by the whole world. That the reduced production of some cf the chief articles of f-od ia Great Britain, and other parts of Europe, mar have eontribated to increase the demand for oar hreadstutfs and provisions, is not doubted ; but that the rreat and efficient cause of this increased demand, and of increased prices, consists in the removal of artificial restrictions heretofore imposed, is deemed to be equally certain. Thjt our exports of looi, already increased and increasing beyond former example, under the more liberal policy which bas been adopted, w ill be still rastl v enlarged, onlt ss they be checked or prevented by a restoration oi" the protective prlicy cannot be doubted. That commercial and navigating interests will beenlargeJ in a corresponding ratio with the increase of our trale, is eqnay certain ; while our manufactuiing interests will still be th lavored interest of the country, and receive the incidental protection atforded them by revenue duties ; and more than this they cannot justly demand. In my annual mesage of December last, a taritf of revenue duties based upon the principle of the cxUting law was recommended ; and I have seen no reason to change the opinions then expressed. In view of the probable beneficial cnV-cts of that law, I recommended that the policy established by it be maintained. It has but just commenced to operate ; and to abandon or modify it without giving it a fair trial, w ould be inexpedient and unw ise. Should defie s in any of its details be acertainl by actual experience to exist, then.- may hereatW be corrected ; but until such defects should become m'nifest, the act should be fairly tested. It is submitted for jour consideration whether it may not be proper, as a war measure, to impose revenue duties on some of the aruci'-s now embraced in the free list. Should it be deemed proper to impose such duties, with a view to raise revenue to meet the expenses of the w ar w ith Mexico, or to avoid to that extent lhe creation of a public debt, they may be repca.ed when the emergency w hich gave rise to them shall cease to exist, and constitute uo part of the permanent policy of the country. The act of the 6:h of Augmt lat, "to provide for the better organization of the treasury, and for the collection, safe-kecpin j, transfer, and disbursement of the public revenue," has been carried i.-.to execution as rapidly as the delay necessarily arising out of the appointment of new otUccrs, taking and approving their bonds, ani preparing and securing proper places for the safe keeping ct the public money would, permit. It is not proposed to depart in any respect from the principles or po'icy on which this great measure is founded. There are, however, defects in the details of tt roeas ire, developed br its practical operation, w hich are fully set forth in the report of the Secretary ot the Treasury, to w hich the attention of Cpnjre is iuvited.- TheMs defucta would impair, to some extent, the successful operation of the law at all times, but are especially embarrassing w hen the country is engaged in war, w hen the expenditures are greatly increased, w Leu loans are to be elfected, aud the disbursements are to be made at points many hundred miles distant, m some cases, front any depository, and a large portion of them in a foreign country. The modifications suggested in the report of the Secretary of the Treasury are recommended to your favorable consideration. In couneciiou w ith this subject, I invito your attention to the importance of esUblU'ain a branch of the mint of the United States at New York. Two-thirds of the revenue derived from, thecustoros being collected at lhat point, the demand for specie to pny tiie duties will he large ; and a branch mint, where foreign coin and bullion coull be immediately con vetted into American coin, would prea'ly facilitate the tran3ction of the public business, enlarge the circulation of irolJ and silver, and be. at the same time, a safe do douosi'.orv of the uublic money. The importanceof graduating vai reducing the price of such of the public lands as have been long ottered in the market, at the minimum rate authoiized by the existing law s, ani remain unso'd, induces me again to recommend the sutject to. your favorable consideration. Many millions of acres of these lunds have been oltercu in the mar' ket lor more than thirty years ; and being ot an inferior quality, they must remain unsaleable for an indefinite period, unless the p'iccat w hich they may be pntchased shall be reduced. To place a price upon them above their rad va ue is not only. to prevent their sale, and therebv depMve the Treasurv of any income from that source, but is unjust to the States in which they lie, because it retards their growth and increase or population, aua oecsuse tney have no dow-m- to lew a tax. upon them as uion other lands within their limits, helj by other proprietors than the United States, for tha supjiort ol their local governments. The beneficial effects of the eraduation principle have been realiied by some of the States ow ning the lands within their limits, in w hich" it has been adopted. They have been demonstrated by the United States acting as thetrustce of the Chickusaw tribe erf Indians in th j sale of their lands lying w ithin the States of Mississippi and Alabama. The Chickasaw lands, w hich would not command in the market the minimum nrice established bv the law s of the United States for the sale of their lands, w ere, in pursuance of the treaty of lr3t with that trilw, subsequent! v ottered lor sale at graduated and re duced rates lor limited periods. 1 ne resu.t was, mat jargcquamiues of these lands were purchased, which would otherwisehaveremained unsold. The lands were disposed of at their real value, and many persons of limited means w ere enabled to purchase small tracts, upon which they have settled with their families. That similar results would be produced by the adoption of the graduation policy by the United States, in all the States in which they are the ownerg of large bodies of lands which have been long in the market, cannot be doubted. It cannot be sounj policy to withhold large quantities of the public lands from the use and occupation oi our citizens, bv fixing upon them prices w hich experience has shown they will not comrr.imd. On the contrary, it is a wise policy to atlord facilities to our citizens to become the ow ners, at low and moderate rates, of freeholds of their own, instead of being the ten ants and dependants of others. If it be apprehended that these lands, if reduced in price, would be secured in large quantities by speculators or capitalists, the sales may be restricted, in limited quantities, to actual settlers or persons purchasing for purposes of cultivation. In my !at annual message I submitted for the consideration of Congress the present system of managing the mineral lands of the United States, and recommended that they should be brought into market and sold, upon such terms and under such restrictions as Con eres mitrht prescribe. By the act of the llthof July last, " the reseivcd lead mines and contiguous lands in the States of Illinois and Arkansas, and the Territories of Wisconsin and Iowa," w ere authorized to be sold. The act is confined in its operation, to " lead nines and contiguous lands." A large portion of the public lands containing copper and other ores is represented to be very valuable, and I recommend tnaipn vision be made authorizinx the sale of these lands, upon such terms and conditions as their supposed value may, in the judgment of Congress, tie deemed advisable, having due regard to tne interests of such of ourcrizeni as mar be located upon them, It w ill be important dunnirour nresent session, to establish a territorial government, and to extend the jurisdiction and laws of the United States over the Territory or Oregon. Our laws regulating trade and Intercourse w ith the Indian tribes east of the Rocky mountains, should tie extended to the Pacific ocean ; and for the purpooe of executing thera and preserving friendly relations with the Indian tribes within our limits, an additional namber of Indian agencies w ill be required, and should be authorized by law. The establishment of custom houses, and of post unices and post roads, and provision lor the transportation of the mail on such routes as the public canvenience will suggest, re quire legislative authority. It will he proper, a so, to establish a surveyor general's office in that territory, and to make the necessary provision for surveying the public lands, and bringing them into mtrkct. As our citizens who now reside in that distant region hare L'n subjected to many hardships, privations, and sacrifices in their emigration, and by their improvements have enhanced the value oi the public lands in the neighborhood or their settlements, it is recommended that liberal grants be made to them of such por tions of these lauds as they may occupy, and that similar grants or linis ui pre-empuun ue mauu lo an w ho may ciuiiaie winner wkhin a limited period, to be prescribed by law. The report or the Secretary of War contains detailed information relative to the several branches of the public service connected with that department. The operations of the army have been of a satislactory and mgh:y frratilying character. I recommend to your early and favorable consideration the measures proosed by the Secretary of War for speedily fil iug up the rank and file of the regular army, for its greater e'tficiency in the field, and for raising additional force to serve during the war with Mexico. Embarrass ment ia likely to arie for want of legal provision authori.'inr compensation to be made to the agents employed in the several Statesand 1 erri lories to pay the revolutionary and othev pensioners the amounts allowed them bylaw. Your attention is invited to the recommendations of lhe Secretary of War on this subject. These agents incur heavy responsibilities and perform important duties, a.d no reason exists why they should not be Idaced on the same looting, as to compensation, with other disbursing officers. Our relations with the various Indian tribes continue tobe of a pacific character, 'l he unhappy dissensions which "have rxiated among the Clierokecs fur many years past have been healed. Since my last annual message, important treaties have been negotiated with sjme of the tribes, by which tlie Indian title lo large tracts of valuable land, within tlie limits of the Stale and Territories, has tuen extinguished, and arraugcincu's made for removing them to the country west of the Mississippi. Between three and fuur thousand, of different tribes, have been removed to lhe country provided for them by treaty stipulations, and arrangements have been made for others to follow. In our intercourse w ith the several tribes, particular attention has been given to the important subject of education. The number of schools established among iliem has been increased, and additional mean provided, uot only for leaching them the rudiments if education, but of instructing them in agriculture an! the mechanic arts. I refer you. to the report of the Secretary of the Navy for a satisfactory view of the operation of the department under bis charge during the past )ear. It is gratifying to perceive, that while the war with Mexico has rendered il necessary to employ an unusual number of armed vessels on her eoa.t, llie protection due to our commerce in other quarter at the world has nut proved insufficient. No means w ill be spared to give tfliciency to the naval service in the prcscculioii of the war j and I am happy to know that the officers and men anxiously desire to devote themselves to the service of their country in any enterprise, however difficult of execution. I recommend to your favorable consideration the proposition to add to each of our foreign squadrons an efficient sea steamer, and as esptefally demanding attention, the establishment at Pensaeola ol the necessary means of repairing and refitting the vessels of the navy employed in the gulf of Mexico. 1 here are other suggestions in the report which deserve, and, I doubt not. will receive your consideration. 1 he progress and condition of the mail service for the past year are fully presented in the rctort of the Postmaster General. The revenue for the yearendiug on the 13th of June last amounted to 3,437, 199, which is fi SOi ,64 1 45 less than that of the preceding year, 'l he payments for that department during the same lime, amounted to K4.0S4.297 2. Of this sura W7,097 80 have been drawn Irom the treasury. The disbursements for the year were 23r,43i 77 less than those of the preceding year. While the disbursements have been thus diminished, the mail facilities have been enlarged by new mail routes of J739 miles; an increase of tiansportation or 1,764,145 mile, and the establishment of 418 new post sfliee. Contractors, postmaster, and others, engaged in this branch of the service, have performed their duties with an energy and iailkfulnets deserving commendation. For many interesting details connected with the operation oi this establishment, you are referred to "he report ol the Postmaster General ; and hia suggestions for improving the revenues are recommended to your favorable consideration. I repeat the opinion expressed in my last message, that the busine-s of this department should be so regulated that the revenues derived from i should be made to equal the expenditures ; and it is believed that this inav be dene bv pro per modifications of the preseut laws, at suggested iu the report of tlie I'ottinasler General, w ithout changing the present rates of With full reliance anon the wisdom and natriotism of vour de liberations, it will be my duty, as it will be my anxious desire, to co-operate with you in every constitutional effort to promote lhe wcitaic auu maintain llie liuiiur Ul OUT Common COUlllrj . 'poLrT. Washiwgtoic, December 8, 1S46. Tha Naur Vnrb TV knno rF TNJ Ort.U ... iiTI.. exports of grain from this port, from the 1st to the um insi., nave reached upwards ol 7oO,tX)0 bushels, and of flour 83,(100 barrels, which, reduced to grain, would give an aggregate of a million one hundred thousand bushels, worth about one million dollars. When an eatimnte S3 mfidn nf tbn mtmkn. s 1 - - -.-v uuiiiui J L BUIjJJ J required to transport this vast amount of produce, . tilrrof tine Wi th r.thoe In - 6" 'i""wnv.o ui cuuon, jam, tallow, beef, cheese, ashes, &c, the high rate of freiqhts will be accounted for. It is very'questionable if such rates can be sustained for a length of time, and it becomes proper to consider whethergood policy would not dictate less urging upon the part of ehippcrs to get produce forward at once."

Finauclal Condition of the State. ' The "Auditor's report for the fiscal year ending October 31st, 1340, is a very able document, and affords another proof in addition to the many heretofore furnished, of the thorough and efficient manner in which the duties of that important office are discharged. By reference to tlie report it will be seen that at the close of tlie lift fiscal year there was remaining

in the Treasury, provided all warrants to that date had been paid, the sura cf $709,177 40, and that the total receipts from November 1st, 1345, to October 31st, 1310, (including balance on baud November 1st, 13 15,) amount to Total expenditures during same pen "Balance in the Treasury on the 1st day of November, 1S40, provided all warrants issued prior to that date had then been redeemed, From an examination of the Treasurer's books it appears that there are now outstanding warrants to tlie following amount? : Regular Treasury warrants, Internal improvement warrants, C3Ö 61 665 81 Which sums being added to the balance above would make the true amount in the Treasury on the 1st day of November, 1340, .... $590,003 10 The auditor remarks that "During the fiscal year just terminated, all warrants drawn upon the treasury have been paid, without that delay and inconvenience to the public creditors, to which they have been subjected for the last five years. The receipt of funds, applicable to the payment of State dues, has been fully as large as was anticipated in the estimates contained in the last annual report from tliis o!Bce ; and it will doubtless be a matter of congi-at,ulation to the Legislature and the people that, for the future, no apprehension need be entertainrd of the slightest embarrassment in the fis cal operations of the Government. The amount of current funds now on hand, it is true, will not be sufficient to meet the heavy demands upon the treasury, which will fall due prior to the time fixed by law for he payment of the current year's revenue; but it may be relied upon, that as usual, a lare amount of revenue win ue lorwarueu in aavance oi tne regular settlements by county treasurers ; and as an additional resource, it is understood that the Ajent of Slate has now in his hands, from the proceeds of the suspended debt, about twelve thousand dollars, which, upon his annual settlement with this office, will be deposited in the treasury, nnd with the money on hand and receipts from other sources, will form a fund amply adequate lo meet all accounts becoming payable prior to the first of JIarch next. After that period, the available resources of the treasury, it is believed, will not only free it from difficult)', as to its ordinary expenditures, but will realize the calculations upon which w-as based, under the act of the last session of the Legislature, the arrangement for the payment of interest on our public debu" The above remarks of the auditor afford gratifying evidence of the improvement in our general finances, and give assurance to the people of Indiana as well as to her public creditor," that she is in a condition to realize a per nanent restoration of State credit! The ordinary expenditures of the State Government for the fiscal year ending October 31st, 1846, amount to $69,130 59. In point of economy, they contrast favorably with the expenditures of former years. During the fiscal year ending October 31st, 1343, the amount of ordinary expenditures was ... - $91,703 23 Expenditure fur 1340 as above, - - 09,130 59 Retrenchment since 1343, The ordinary expenses for the year ending October 31st, 1844, were - Expenditure for 1346, as above, Retrenchment since 1841. The ordinary expenditures for the year ending October 31st, 1345, were -Expenditure for 1840, as above, $22,571 09 93,037 43 69,136 59 $23,900 69 71,122 29 69,130 59 Retrenchment since last year, - $1,935 70 The amount which will be needed to cover the ordinary expenditures for tlie year 1347, is estimated at $07,400. Thus it will be seen that a rigid system of economy in our public expenditures, continues to be observed ; which is iu striking contrast with' the thriftless management of previous administrations. The amount of the Tublic Debt on which interest is payable by the State, and for which provision must be made, is stated at $11,063,000 The amount which will be d,ue, on the 1st day of January, 1317, on account" of interest on bonds outstanding, and which has accrued since January 1st, 1811, at which time the State failed to pay her interest, is $3,320,940 The amount of interest falling due annually, is $555.120 Our entire foreign indebtedness is as follows, to wit : Bond3 on which the State has to pay interest, $11,063,000 Bonds on which tlie Bank paya interest, 1,390,000 Interest which will be due January, 1st 1847, 3,320,940 Total, $15,734,910 The amount of six per cent, treasury notes issued under the act of February 15, 1340, was, $1,500,000 The total payments on account of six per cent. Treasury notes have been as follows, to-wit : Amount of principal redeemed arid cancelled, $1,157,155 00 Amount of interest allowed, 161,113 90 Total, $1.318,203 96 Amount outstanding at this date $342,645 The amount due on the six per cent. Treasury notes outstanding is as follows, to-wit r Principal outstanding as" above,' $342,845 Interest on same, (estimated) 110,000 Total, $152,345 The amount of five per cent, treasury notes issued under the act of January 31, 13 12, was $722,040 Amount outstanding at this date, $349,905 The amount due on these notes is as follows, to-wit. Principal outstanding as above $349,965 Interest on same (estimated,) 73,500 Total, $423,465 The entire payments on account of five per cent. Treasury notes have been as follows, to-wit: Principal redeemed and cancelled, $372,675 00 Interest on same, 31,920 22 Total; . $104,601 22 Tlie amount of State indebtedness, on account of bonds sold, and outstanding Treasury notes, is as follows, to wit : Bonds on which the State pays interest, $11,063,000 Bonds on which lhe Bank pays iuterest, 1,390,000 Interest which will be due Jan. 1, 1317, 3,326,940 Six per cent, treasury notes outstanding, 312,815 Interest dub on same, (estimated,) 110,000 Five per cent, treasury notes outstanding, 349,985 Interest on' same, (estimated,) 73,500 Total, . .. $16,601,250 "The returns tf the assessments for 1846 are not yet complete, but enough have heen received' to render it certain that the number of polls placed an the du plicates cf 1810 will be 127,000, and the value of taxables $122,000,000, being an increase over tlie returns of 1845 of 2,500 polls, and $3,000,000 of taxable property. By reference to tabular statement No. 1, appended to this report, it will be seen that of the assessments ol ioio aume, tne amount returned delinquent was a little more than fifteen per cout. In

1343, the rate of delinquency was 17 34 on the hundred, and in 1344, it waa $16 8ti ; thus showing a gradual improvement in the collections each year. We may, therefore, safely assume that, for future years, the amount to be returned delinquent, each year will not exceed sixteen per cent of the assessments. It. way also be confidently relied upon, that the number of assessable polls will increase 3,000 each year, and the value of taxable property $3,5 0,000. These estimates are below what the records of this ofhee would justify us in assuming as the increase of our taxable resources, but they are put down at these moderate amounts toavoid al! possibility of cavil. On the ground, therefore, that of the assessments for

1 r,n fa r ' I"uture years, sixteen per cent, will be returned delin- - ' J ' quent, and that the number of polls and amount of od, 1,044,'J77 05 j taxable property will increase as above assumed, the

: 1 following calculations will show the ability of the J State, to comply, promptly and fully, with her part of ithe conditions upon w hich the payment of iuterest on 'our public debt was arranged, under the act of Janun."'19:.lSK".. .., ..... .

uur limits wm not permit us 10 give in exieuso, the elaborate tables alluded to in the paragraph of tlie report quoted above ; and we 6hall therefore content ourselves with the insertion of the concluding portion of this branch of the report. "At the close of the year 1S51, our six per cent. Treasury note circulation will, on the above estimate, have been entirely absorbed, and tlie revenue for the year 1352 will be paid in funds applicable to the payment of our foreign indebtedness. "The amount which will be realized from the assessments of 1352 will be as follows, to-wit: Assessment on $1 43,000,000 of property, $307,500 Assessment on 145,000 polls, - 103,775 Delinquencies collected, Total, -Delinquencies, Costs of collection, -Expenses of State, - Total, - - 45.0UO - $512,275 $74,000 22.250 75,000 - 171,350 Amouut applicable to payment of interest, $340,425 Under the act of January 19, 1340, our public debt, on the 1st day of January, 4853, will be as follows, to-wit: Bonds outstanding, - -$11,003,003 Interest at two and a half per cent, from Jan'y 1st, 1341, , to January 1st. 1317, - - 1,600,200 One half of one per cent, from January 1st, 1317, to January Ut, 1853, - 232,040 Total, ,..- -813,000,240 Two and a half per cent, interest on this sum would te - - - - - 320,506 Which being deducted from the amount applicable to the payment of interest as above, would leave a surplus in the Treasury, on the 1st day of January, 1SÖ4, after paying the interest due July 1st, 1353, aud January 1st, 1351, of - - $13,919 "In making the foregoing estimates, the influences "which will be exerted upon the public prosperity by the completion of the canal, and the re-establishment of the credit of th. State upon an honorable and permanent basis, have not been taken into consideration. It must be evident to all that, as soon as tlie canal shall have opened to at least one third of the State, not only an access to market, but a choice of the best markets in the country, the valne of all lands in that section, and the amount and value of all other kinds of property, will advance largely beyond the increase, which would take place, in the absence of lhat essential element of prosperity. Our popu-r lationi too, we may safely anticipate, will be rapidly enlarged by the swelling tide of immigration, which, for a number of years p ist, has been forced into other channels, by the dread of onerous taxation in our own State. With a redeemed public faith, and an important work of internal improvement in successful operation, we need have but little hesitancy in estimating, that the taxable property in the State, in 1852, will be one hundred and seventy-five millions, instead of a hundred and forty-three, and the number; of taxable polls nearer two hundred thousand,' than the number estimated above." We are strongly impressed with the conviction, that with a view to a saving of interest now accumulating on the outstanding six per cent. Treasury notes,' the legislature should take measures to accelerate the surrender of that currency. The passage of an act, declaring that after a certain date no further interest should be allowed on them, would undoubtedly bavc this effect. Such a course is not without precedent, and no practical evil results would be produced by it, The amount of tolls collected, on the 'Wabash and Erie canal cast of Tippecanoe, for the year ending October 31st, 1340, is - - - $105,257 04 The amount for the previous year was 84,447 28 Showing an increase in tolls for 1310 over 1345, of - - - $20,809 73 The remarks of the Auditor upon the new assessment of lands, made under tlie act of last winter, are entitled to special consideration. They point to an evil,' to which the legislature should speedily apply an efficient corrective, lie says," It will be seen that the effect of the reappraisement, authorized by the act of January 19, 1846, was to decrease the value of lands $350,270, while it increased the value of improvements $613,512, and the value of town lots $511,494. If to tlie decrease in the value of lands, be added the value of the additional acres assessed in 1816, to wit : 303,363 acres at $3 50 per acre, making $1,282,279, the actual decrease for 1846 as compared with 1845, would be $1,032,549. Instances of gross inequality in the value of lands will be readily discovered by reference to the tabular statement. In the county of Jennings, the value of lands per tacro is $1 80; in Bartholomew, it is $3 77, and in Johnson, $1 91. In Rush couuty, the value of lands per acre is $5 43; in Shelby, it is $3 90. Other examples might be given, were the foregoing not sufficient. The necessity of so amending our present revenue system, that an efficient provision may be made against the injustice of unequal assessments, must be evident to all." It would ofljrd us pleasure lo give further extracts; but as that is impractible, we refer our readers to the report itself, for many other matters of interest, to some of which our space does not permit us even to refer; and for details to which we could not do justice without giving the report entire. 07" Jefferson asserted, 60 years ago, that in the natural course of events, the American Union must extend to the Isthmus of Panama ; and even Fisher Ames, with all his croaking despondency as to the fate of our institutions, predicted that this empire was to extend "from ocean to ocean." Our revolutionary fathers tvere anxious to acquire and annex tlie Canadas ; and Charles Carroll was sent as the cenfidential agent of Congress, in 1773, to Canada, to use his influence in bringing all the British provinces into the revolutionary movement ;" which was the reason why his name1 was not signed to the Declaration until some time after the 4th of July. John Quincy Adams contended for the Rio Grande del Norte as the boundary of Texas ; and Mr. Webster made advances' for the acquisition of California. These facts show the tendency of things in relation to our territorial limits- That tendency may be regulated and modified, but cannot be estopped. 07" We publish in another column the very spirited inauirural address of Lt. Gov. 'Dcxsixc. It ii as happy arid appropriate, as it is spirited, and we have no doubt that the tone of earnest sincerity by which it is marked will be fully eustained by the, course of the Lt. Governor as the presiding officer of the Senate. We were not able to procure a copy of the Got-' ernor'e inaugural address in time for this paper, but shall publish it as soon'as it can be procured.'