Indiana State Sentinel, Volume 7, Number 25, Indianapolis, Marion County, 10 December 1847 — Page 2

By Telegraph for Louisville Democrat. President's Message. FtUuic-atizens of the Senate, ' and of the House of Representatives : The annual meeting of Congress is always ac interesting event. The representatives of the? States

and of the people come fresh from their constituents i to take counsel together for the common good. After an existence of near three quarters of a century, as a free and independent republic, the problem no longer remains to be solved, whether man is capable of eelf-governrnent. The success of our admirable system i-f a conclusive refutation of the theories of those in other countries, who maintain that a fuvored few are born to rule, and that the mass of mankind must be governed by force. Subject to no arbitrary hereditary authority, the people are the only sovereigns recognized by our constitution. Numerous emigrants, of every lineage and language, attracted by the civil and religious freedom we enjoy, and by our happy condition, continually crowd to our shores, and transfer their hearts. rot less than their allegiance, to the country where j country has beeu so much favored, or ßhould acknowledge, with deeper reverence, the manifestation of the Divine protection. An all-wise Creator directed and guarded us in our infant struggle for freedom, and has constantly watched over our surprising progress, until we have become one of the great nations cf the earth. It is in a country thus favored, und under a government in which the executive and legislative brandies hold their authority fur limited periods, alike from the people, and where all are responsible to their respective constituencies, that it is again my duty to communicate with Congress upon the stale of the Union, and the present condition of public affairs. During the past year, the most gratifying proof are presented that our country has been blessed with a wide-spread and universal prosperity. There has been no period, since the government was founded, when all the industrial pursuits of our people have been more successful; or when labor, in all branches of business, has received a fairer or better reward. From our abundance, we have been enabled to perform the pleasing duty of furnishing food for the starving millions of less fuvored countries. In the enjoyment of the bounties of Providence, at home, such as have rarely fallen to the lot of any people, it is cause of congratulation that our intercourse with all the powers of the earth, except ?.Iexico, continues to be of an amicable character. It has ever been our cherished policy, to cultivate peace and good will with all nations; and this policy has been'steadily pursued by me. No change has taken place in our relations with Mexico since the adjournment of the last Congress. The war, in which the United StatPS were forced to engage with the government of that country, still continues. I deem it unnecessary, after the full exposition of then contained in my message of the 11th of .May, 14'3, and my annual message, at the commencement of the session of Congress, in December last, to reiterate the serious causes of complaint which we had against Mexico, before she commenced hostilities. It is sufficient on the present occasion to say, that the wanton violations of the rights of person and property of our citizens, committed by Mexico ; her repeated acts of bad faith, through a long series of years, and her disregard of solemn treaties stipulating for indemnity to our injured citizens, not only constituted ample cause of war on our part, but were of such an aggravating character, as would have justified us before the wnole world, in resorting to this extreme remedy. With an anxious desire to avoid a rupture between the two countries, we forbore for years, to assert our clear rights by force, and continued to seek redress for the wrongs we had suffered, by amicable negotiations, in the hope that Mexico might yield to pacific councils and the demands of justice. In this hope, we were disappointed. Our minister of peace, sent to Mexico, was insultingly rejected. The Mexican Government refused even to hear the terms of adjustment, which he was authorized lo propose, and finally, under wholly unjustifiable pretexts, involved the two countries in war, by invading the territory of the State of Texas, striking the first blow and shedding llio blood of our own citizens, on our own soil. Though the United Stales were the aggrieved nation, Mexico commenced the war. and we were compelled, in self defence lo icpel the invader, and to vindicate tlie nation's honor and interest, by pioiecuting it with vigor, until we could obtain a just and honorable peace. On learning that hostilities had been commenced by Mexico, I promptly communicated that f.ict, accompanied with a succint statement of our other causes cf compluint against Mexico, to Congress, and that body, by the act of the 3 lb of May, 1S46, declared that by the act of the repuLlic of Mexico, a state of war existed between that government sod the United States. This act dcclattd the war to exist by the ct of Mexico; and making provisions for its prosecution to a speedy and successful termination, was passed with great unanimity by Congress thcie tiing but two negative votes in the Senate, and but fourteen in the House cf Kcpresentaivea. The existence of the war having thus been declared by Confess, it became my duty, under the Constitution and the laws, to conduct and pioccufe it. This duty has been pei formed, and though at every stae of its progress, I have mmifesttd a willingness to terminate it by a just peace, Mexico has refused to accede to any terms which could be accepted by the United Stales consitently with the national hooor and interests. The rapid and brilliant success of our arms, and the vast extent of the enemy's ten itories which had been overrun and conquered, befoie the close of the last sesion of Congress, were fully known to that body. Since that lime the war has been prosecuted with increased energy anr) I tin gratified to state, with a success which commands univeisal admiration. History piesents no parallel of so many gloiious victoiies achieved by any nation within so fchurt a peiiod. Gur aimy, teulaj and voluuteeis, have coveted themselves with impeiisbable honors whenever and wherever our foicet have encountered the enemy. Though he was in va-tly supeiiir numbers, aud often entrenched in foitifiedpositioiis of his own selection, and of gieat strength, be has been defeated. Too much piai-e cannot be bestowed upon our officers and men, reulais and volunteers, for their galrantry, discipline, indomitable courage, aud perseverance, all seeking the posts of danger, and vicing with each other in deeds of noble dai10. While every patiiot lieait must exult, and a just national ptide animate cveiy bosom in beholding the high proofs of courage, consummate military skill, steady discipline, and humauity to the vanquished enemy, exhibited by our gallant army, the nation has to mourn the loss of many brave officers and soldiers who have fallen ia defence of their country's honor and interests. The brave dead met their melancholy fate in a foieiga land, nobly discharging their duty, and with their country' flag waving triumphantly in the face of the foe. Their patnotic deed are justly appreciated, and will long be remembered by their grateful countrymen. The parental caie of Ihe government they loved and served should be extended to their suiviviog families. Shortly after the adjoui nment of the last sesion of Congress, the gratifying intelligence wis teceivrd of the battle of Buena Lista, and of Ihe fall of the city of Vvia Cruz, and with it ihr strong castle of Jan Juau d'Ulloa, by which it wa dt frndvd. ßflietii g that after thee and other successes, so honorable to our aim and so disastrous to Mexico, Ihe period wii piophku to irid her another opportunity, if she thought proper t embrace it, t3 enter into negotiations for peace, a commissioner was appointed to proceed to the headquarters of our aimy, w ith full powers to ea'er on negotiations, aud to conclude a just and honorable tieaty of peace, lie was not diiected , to make any new oveilures of peace, but was the beater of a despatch from the Secretary of State of the United States to the Minister of Foreign Affairs of Mexico (in reply lo one received Irum the latter, of the 22A of Febluaty. 1347,) ia which the Mexican government was informed of his appointment, and of bis pretence at the bead quaiters of our army, and that be was invested with full powers to conclude a definitive treaty of peace whenever the Mexican government might signify a desire to do so. While I was unwilling to subject the Uuited States to another inJigQiit refusal, I was yel ieolved that the evils of war should not be piotracted for a day longer than might be rendered necessary by the Mexican government. Care was taken to give no instructions to the commissioner which could in any way in'crfeie with our military energies in the pmsecu'ion of the war. He possessed no authuiiiy in any manner tocoutiol these ops rati.ms. He was authoiized to exhibit Ms ni"tiucti"OS to the Genetal in command of the aimv, anJ in the event of Ihe tieaty being concluded and ratified on the part of Mexico, he was directed to give him notice of that fact. On Ihe happening of such contingency, and on receiving not ire iheieaf, the General in command was iostrue'ed by (he Secretary of War to suspend fuither active military operations until further oiden. These instructions were given with a view to intermit hostilities until the treaty thus ratified by Mexico could be tiansmitled to Washington, and receive the action of the government of the United States. The commissioner wa also directed, on reiching the army, to deliver to the general in command the de?patchc?, which he bore fn-n the Secretary of War to ihe Minister of Foreign Affairs in Mexico, and on receiving it, the tjeneral was instructed by the Secretary of War to cause it to be transmitted to the commander of the Mexican force, with n request that it might he communicated to hisgovcrnmcnt. 1 he commissioner did not reach the head-quarters of the army until another brilliant victory had crowned our arms . at Uerro Gordo. The despatches which he bore from the fecrctary of P.Var to the General ia command of the army, was relvtd by that oflicer, Uten at Jalapa, ou tho t.i d.iy

of May, IS 17, together with the!espatches of the Secretary of Slate, to the Minister of Foreign Affairs of Mexico; having been transmitted to him from Vera Cruz. The commissioner arrived at the bead-quarters of the army a few days afterwards. Ilia presence wilh the army, and his diplomatic character, were rnatie known to the Mexican government from Tuebla, on the 12lh day of June, 1S47, by the transmission of the despatch from the Secretary of State, to the Minister of Foreign Affairs of Mexico. Many weeks elapsed after its reception, and no overtures were made, nor was any desire expressed by the government of Mexico to enter into negotiations for peace. Our army pursued its march upon the capital, and as it. approached, was met by a formidable resistance. Our forces first encountered the enemy and achieved signal victories in the severely contested battles of Contreras and Churubusco. It was not until afior thee actions had resulted in decisive victories, and the capital of the enemy was within our power, that the Mexican government manifested any disposition to enter into any negotiation for peace; aud even then events have proved, there is too much reason to believe, they were insincere, and that in agreeing to go through the forms of negotiation, the object was to gain time to strengthen the defences of I lie capital, and to prepare for fresh resistance. Tho general in command of the army deemed it expedient to suspend hostilities temporarily, by entering into an armistice with a view to the opening of negotiations, and commissioners were appointed on the part cf Mexico, to meet the commissioners on the part of of the United States.' The result of the conferences which took place between the functionaries of the two governments, was a failure to conclude a treaty of peace. The commissioner of the United States took with him the project of the treaty already prepared, by the terms of which the indemnity required by the United States was a cession of territory. It is well known that the only indemnity which it is in the power of Mexico to make, in satisfaction of the just ana long deferred claims of our citizens against her, and the only means by which she can reimburse the U. States, for the expenses of the war, is a cession to the U. States of a portion of her territory. Mexico has no money to pay and no other means of making the requisite indemnity. If we refuse it we can obtain nothing else; to reject indemnity.by refusing to accept territory, would be to abandon all our just demands, and to wage war, bearing all its expenses without a purpose or definite object. A state of war abrogates treaties, previously existing between the belligerents, and a treaty of peace puts an end to all claims for indemnity, for tortuous acts committed under the authority or one government against the citizens anil subjects of another, unless they are provided for in its stipulations. A treaty of peace, which would terminate the existing war. without providing for indemnity, would enable Mexico, an acknowledged debtor, and the aggressor in the war, to relieve herself from her just liabilities; and by such a treaty our citizens, who hold just demands against her, would have no remedy for them, either against Mexico or their own government. Our duty to our citizens must forever prevent such a peace, and no treaty which does not provide ample means of discharging those demands can never receive my sanction. A treaty of peace would settle all difficulties. If an adequate cession of territory be such a treaty, the U. States should release Mexico from all her liabilities, and assume their payment to our "own citizens. If, instead of this, the U. States were to consent to a treaty by which Mexico should again engage to pay the heavy amount of indebtedness, which a just indemnity to our government and citizens would impose on her, it is notorious that she does not possess the means to meet such an undertaking. From such a treaty, no result could be anticipated but the same irritating disappointments which have hitherto attended tho violations of similar treaty stipulations on tho part of Mexico. Such a treaty would be but a temporary cessation of hostilities, without the restoration of the friendship and good understanding which should characterize the intercourse between the two countries. That congress contemplated the acceptance of territorial indemnity, wnen that body made provision for the prosecution cf the war, is obvious. Congress could not have meant, when, in May, 1S4G, they appropriated ten million dollars, and authorized the President to employ the militia and naval and military forces of the U. States, and to accept the services of 50,000 volunteers, to enable him to prosecute the war, and when, at their last session, and after our army had invaded Mexico, they made additional appropriations, and authorized the raising of additional troops for the same purpose, that no indemnity was to be obtained from Mexico at the conclusion of the war; and yet it is certain that if no Mexican territory was acquired, no indemnity would be obtained. It is further manifest that Congress contemplated territorial indemnity from the fact that at their last session an act was passed, upon the Executive recommendation, appropriating three millions of dollars, with that express object. Tho appropriation was made to enable the President to conclude a treaty of peace, limits, and boundaries, with the republic of Mexict, to be used by him in the event that said treaty, when signed by the authorized agents of the two governments, and dulv ratified by Mexico, should call for the expenditure of the same or any part thereof. The object of asking this appropriation was distinctly stated in the several messages which I communicated on .the subject. Similar appropriations, made in 1803 and 1S0G, which were referred to, were intended to be applied in part consideration fot the cession o' Louisiana and the Floridas. In like manner it was anticipated that on settling the terms of a treaty of limits and boundary with Mexico, a cession of territory estimated tobe of greater value than the amount of our demands against her, might be obtained, and that the prompt payment of this sum for the territory ceded in the conclusion of a ireaty and its ratification on her part, might be an inducement with her to make euch a cession of territory as would be satisfactory to the United States. And although the failure to conclude uch a treaty lias rendered it unnecessary to use any of the Js3, 000,000 appropriated by that act, and the entire sum still remains in the treasury, it is still applicable to that object, should the contingency occur making ucli appropriation proper. The doctrine of no territory is the doctrine of no indemnity, and if sanctioned, would be a public ncktiowledgmcnt that our country was wrong, and that the war declared by Congress, with extraordinary unanimity, was unjust and should be abandoned an admission unfounded in fact, and degrading to the national character. The terms of the treaty by the United States, were not only just to Mexico, but, considering the character and amount of our claims, the unjustifiable and unprovoked commencement of hostilities by her, the expenses of the war to which we have been subjected, aud the success which lias attended our arms, were deemed lo be of a most liberal character. The Commissioner of the United States was authorized to agree to the establishment of the Rio Grande us the boundary, from its entrance into tlm liulf to its intersection of the Southern boundary of New Mexico, in north latitude about 32 degrees, and to obtain a cession to the United States of tho provinces of New Mexico and tho California?, and the privilege of the right of way across the Isthmus of Tehuantepec. The boundary of the Rio Grand aud the cession to the United States of New Mexico and Upper California, constituted an ultimatum, which our Commissioner was, under no circumetanccs, to yield. Tint it might be manifest not only to Mexico, but all other nations, that the United States were not disposed to take advantage of a feeble power by insisting upon wresting from her ull her other provinces, including muny of her principal towns and cities which we had conquered and held in our military occupation, but were willing to conclude the treaty in a epirit of liberality, "our Commissioner was authorized to stipulate for tho restoration to Mexico of all other conquests. As the trritury to be acquired by Ihe boundary proposed might be estimated to be of greater value thin a fair equivalent for our jut Jemand, our commissioner was authorized tu etipulalo for the paymeut of uch additional . pecuniary consideration as was deemed reasonable. Thd terms of ireaty proposed by the Mexican government cornmianioners were wholly inadmissible. They negotiated a if Mexico were the victorious and not ihe vanquished parly, or ihey must hive known their ultimttum could never bn accepted. It required the United States to dismember Texaa, by surrendering ta Mexico that part of tho territory of that State lyiriif between the Nueces and the Kio Grande, included within her limits by her laws, when she was an imh pendent republic, and when ahn km admitted by Congress us one of the estates of our Union. Il contained no provision fir iLs jnyuitut of the just claims

of our citizens. Ii required indemnity to Mexican cstizens for the injury they have sustained by our troops in the prosecution of the war. It demanded the right for Mexico to levy and collect the Mexican duties levied on goods imported into her porta while in our military occupation, and the owners of which had paid to officers of the United States, the contribution which had beeen levied upon them, and it offered to cede to the United State for pecuniary consideration, that part of Upper California lyinir north of Uu 37 degrees. Stach were the unreasonable terms proposed by the Mexican commissioners. The cession to ihe United States by Mexico, of the provinces of New Mexico, and the Californias, proposed by the commissioners of the United States, it was believed, would be mnie in accordance with the convenience and iutt-it-Ms of both nation, than any other cession of territory vhich it was probable Mexico could beinJutcdto make. It is manifest to all who have observed the actual conJilion of tho Mexican government for some time past, and at the present time, that if these provinces should be retaineJ bv her, she could not long continue la hold and govern them. Mexico is too feeble a ioer to covern theee provinces, ly

ing, as they do, at a distance of more than a thousand miles from her capital, and if attempted to be retained by her, they wou'd constitute but for a short time, even nominally, a part of her dominions. This would be especially 'the case with Upper California. The sagacity of powerful Enropoan nations have long since directed their attention to the commercial importance of that province, and there can be little doubt that the moment the United States shall relinquish their present occupation of it as indemnity, an effort would be made by some foreign power to possess it, either by conquest or purchase. If no foreign government should acquire it by either of these mode., an independent revolutionary government would probably be established by the inhabitants and such foreigners as may remain in or remove to the country, as soon as it should be known that the United States had abandoned it. Such a government would be too feeble long to retain its separate independent existence, and would finally become annexed to or a dependent colony of some more powerful State. Should any foreign government attempt to possess ilasa colony, or otherwise to incorpoiate it with itself, the principle announced by President Monroe in 1821, sad re-affirmed in my first annual message, that no foreign power shall, wilh our consent, be permittsd to plant or establish any new colony on the North American continent, must be maintained. In maintaining this principle, and in re sisting its invasion by foreign powers, we might be involv ed in other wars more expensive and more uillicult than that in which we are now engaged. The Provinces of New Mexico and the Californias, are contiguous to the territory of the United States, and if brought under the government of our laws, their resources, mineral, agricul lural, manufacturing, and commercial, would soon bode veloped. Upper California is bounded on th north by our Ore pon possessions, and if held by ihe United States, would soon be settled by an enterprising and intelligent portion of our population. The bay of San Franrisco and other hiirbors along the California coast would afford shelter for our navy, our numerous whale ships, and other merchant vessels employed in the Pacific Ocean, and would, in a short period, become marts of an extensive and profitable commerce with Ulnna and other countries oi tue wsi. Tlieseadvantnses.iii which the whole commercial world participate, would at once be secured to the United States by the session of this territory, while it is certain that as , i- .1 S f J ..... lw. .r ionz as 11 remains a pari 01 tue .uexicnu uuiiiiiii""", c can be enioved neither bv Mexico herself, nor any other nation. ISew Mexico is a Irontier, and lias never oeen 01 any considerable value to Mexico. I rom its locality, it is naturally connected with our western settlements. 1 he territorial limits ol the State of Texas, too; limits as defined by her laws before her admission lo our Union, embrace all that portion of New 'Mexico lying east of the Kio Grande ; while Mexico still claims to hold this territory as a part oT her dominions, in the adjustment of the question of boundary. There is another consideration which induced the belief that the Mexican government-might even desire to place this province within the piotection of the Government of the United States. Numerous bands of fierce, war-like savages wander over it and upon its borders. Mexico has been and must continue to be too feeble to restrain them from committing depredations, robberies, and murders, not only upon the inhabitants of Mew Mexico itself, büt upon lliose of the other northern Slates of Mexico. It wuuld be a blessing lo all these northern States to have their citizens protected against them by the power ol the United States. At this moment, many Mexicans, principally fetnah and children, are in captivity among them. If Kew Mexico were held and governed by the United States, wt could effectually prevent these tribes Iron) committing such outrages, and compel them to release these captives and restore ihern to ihcir families and friends. In proposing to acquire New Mexico and the Californias, it was known that an inconsiderable portion of the Mexican people would be transferred with them; the country embraced within these provinces being chiefly an uninhabited region. These were the leading considerations which induced me to authorize the terms of peace, which were proposed to Mexico. They were rejected, and negotiations being at an end, hostilities were renewed, and assault was made by our gallant army upon tho strongly fortified places near the gstes of the city of Mexico, and upon the city itself, and, after several days of severe conflict, the Mexican forces, vastly superior in numbers to our own, were driven from ihn city, and it was occupied by our troops. Immediately afier information was received of the unfauorable result ol negotiations, believing that his contin ued presence could be the product ol no good, I determined to recall our commissioner. A dispatch to this elfeet was transmitted to him on the Clh of October last. The Mexican government will be informed f his recall, and that in the existing state of things I shall not deem it proper to make any further overtures of peace, but shall be at all limes ready to receive and consider any proposals which shall be made by Mexico. Since the liberal proposition of the U. States was authorized to be made in April last, large expenditures have been incurred, and the precious blood of many of our pa triotic fellow citizens has been shed in the prosecution of the war. 1 his consideration and the obstinat perseverance bl Mexico in protracting the war, must influence the terms of peace which it may be deemed proper hereafter to accept. Our arms having been every where victorious, having subjected to our military occupation, a large portion of the enemy's country, including his capital, negotiations for peace having failed, the important question arose, in what manner the war ought to bo prosecuted, and what should be our fitnre policy. I cannot doubt that we should secure and render available the conquests we have already made; for this purpose we should hold and occupy, by our naval and military forces, all Ihe ports towns, cities, ami provinces now in our possession, or which may hereafter full into our possession; that we should press forward our military operations, and levy such military contributions on the enemy as may as far as practicable defray the future expenses of the war. Had the Government of Mexico aeeeded to the favorable and liberal terms proposed, that mode of adjustment would have been preferred. Mexico having declined to accept this, rind failed lo otTer any other terms which would be accepted by the United States, the national honor, no less than the public interests, requires that the war should be prosecuted with increased energy and power, until a just and satisfactory peace can be obtained. In the mean lime, as Mexico refuses all indemnity, wo should adopt measures to indemnify ourselves, by appropriating permanently a portion of her territory. Early after the commencement of the war, New Mexico aud llio Californias were taken possession of by our forces. Our military and naval commanders were order ed to conquer and bold them, subject to the disposed of by n treaty ot peace. These provinces are now in our undisputed occupation, and have been ea for many months; all resilience on the part of Mexico having ceased within their limits. I am satisfied that they should never be surrendered to Mexico. Should Congress concur with me in this opinion and Chat they should be retained by the United Stales ns indemnity, 1 can perceive 110 good reason why the civil jurisdiction nnd the laws of the United States should not at once be extended over them. To wait for a treaty of peace, such as wo are willing to make, by which our relations o them would not be

changed, cannot be good policy, whilst our own interests and that of the people inhabiting them, require that n stable, responsible, and Iree government, under our authority, should be as soon as possible established over them. Suould Congress, therefore, determine to hold thesfl provinces permanently, that ll;ey shall hereafter he considert ed constituent parts of our country, the early establishment of a territorial government over them, will be important, for the more perfect protection of persons and property, and I recommend that such territorial government be established. Il will promote peace nnd tranqnility among the inhabitants by allaying all Hppreliensinn that they may entertain of being subjected ngain to the jurisdiction of Mexico. I invite the early and favorable consideration ol Congress to this important subject. Uesido New Mexico and the Californias, there are other Mexican provinces which have been reduced to our possession by conquest. These other Mexican provinces are governed by our military and naval commanders, under the general authority which is conferred upon a conqueror by tho laws of war. They should continue to be held as a means of coercing Mexico to accede to just terms of peace. Civil us well as military olficers are required to conduct uch a government. Adequate eonipeneitioii to br drawn from contributions levied on tho enemy should be fixed by law for such oflicers as may bo thus employed. What further may becomo necessary, and what final disposition it may bo projer to make of them, must depend oti the future progress of the war and the coarse Mexico may think .proper hereafter to pursue. With the views I entertaili I cannot fi vor the policy which has been su22C3'c either to withdraw - our t i

armies altogether, or to retire to a deMjrnated line and simply hold and defend it. To withdraw our army altogether from the conquest thev have made by

d-'eds of unparalleled bravery, and at the expense of sj much blood and treasure, in a war just on our part, and one which, by the act of the enemy, wecou'd not honorably have avoided, would be to degrade the nation in its own estimation, and in that of the world. To retire to a line and simply hold and defend it, woud riot terminate trie war. On the contrary, it would encourage Mexico to persevere, and tend to protract it indefinitely. It is not to be expected that Mexico, after refusing to establish such a line as a permanent boundary, when tiur victorious armies are in possession of her capital and heart of her country, would permit us to hold it without resistance. Tuat she would continue the war, and that in the most harassing and annoying forms, there can be no doubt. A border wirlarc, of a most savage character, extending over a lon line, would be unceasingly waged, it wuuld re quire a lare army tu be kept continually 111 the held, station ed at 101 ts od gjrnons along such a line, to piutect and deleud it. fhe enemy, tclieved from the presence of our aims on hi coasts, and iu the populous parts ol" the interior, would dneel, aud, selecting an isolated post for attack, would concentrate his fotcc upon iL This would be a cumlitiou of atfsiis which tle Mexicans, puisuing their favorite system of guenilla waif.iie, would piobably ptefer to any other. Were we to assume a defeusive attitude 011 such a line, all the ad vantages cf such a Ute of war would be on the side of the enemy. We could levy no contributions upon him, nor id any other way make him feel the pressure of the war; but must remain inactive and await his approach, being in con stant uncertainty at what point ,f the line or at what lime he might make the assault, fie may assemble and organize an overwhelming force in the iateiior, on hi own side of the line, and, concealing his purpose, mike a suddi-11 assault upon some one of our posts so distant from any other as to pre vent the pjssibility of succor or reinforcements; and in this way our trallant army would be exposed to the danger of being cut oil' in detail, or if, iu their unrivalled biavery and piowes, every heie exhibited during this war, they should tepulse the enemy, their numbets stationed at any one point may be too small to putsue him. Should the enemy be repulsed iu an attack, he will have nothing to do but retreat to Iii own siJe of the hue, and being iu no fear of a puisuing aimy, may reinforce himself at leiiure for an attack ou the same or some other point. He may, too, cross the line between our posts, make incursions into the eountry which we hold, muider the inhabitants thereof, and then ietieat to the inteiior befoie a sufficient foice can be concentrated to pursue him. Such would probably be the hairasMii character of a meie defensive war uu our paiL. If our force?, when attacked or threatened with attack, be permitted to cross the line, drive back the enemy and conquer him, this wuuld be aaiu to invade the enemy's country, after having lost all the aavaoiage ol the conquests we have alieady made, by hav. ioff voluntarily abandoned them. To hold such a line sue cessiuny and in security, it is far from beiu certain that U would not require as large an army as would be necessary to hold all the couquests we have already made, and to con tinue ine prosecution or the war in the lieait of the enemy's country. It is also far fiom being certain that the ex pene of the war would be diminished bv such nolicv. I am persuaded that the best means of vindicating tho national honor and interests and of brinrinff the war to an honorable close, will be to prosecute it with increased en enry aud power in the vital Dart of tho enemv's country, In my annual message to congress I declared the war had not been waped with a view to conquest, but, having been commenced by Mexico, it bus been carried into tho ene my's country, and will be vigorously prosecuted therewith a view 10 obtain an honorable peace, and thereby secure ample indemnity for the expenses of the war as well as to our rnucli injured citizens who hold a lanro pecuniary ile mand against Mexico. Such, in my judgment, continues 10 oe our true policy; indeed tho only policy which will probably secure a permanent peace. It has never been contemplated by me, as an object of the war, to make a permanent conquest of tho Republic of Mexico, or to annihilate her separate existence as an independent nation; on the contrary, it has ever been my deeiro that bIic should maintain her nationality, and under a good government, adapted to her condition, be a prosperous and free republic. The U. States were the first among the nations to recognize her independence, and has always desired to be on terms of amity and good neighborhood with her. This she would not suffer. By her own conduct we have been compelled to engage in the present war. In its prosecution we seek not her overthrow as a nation, but a vindication of our national honor. We seek to obtain redress for the wrong she has done us, and indemnity for our just demands against her. We demand an honorable peace, and that peace must bring with in indemnity for the past and security for the future. Hitherto Mexico has refused all accommodation by which such a peace could be obtained. While our armies have advanced from victory to victory from the commencement of the war, it has always been with the olive branch of peace in their hands, and it has been in the power of Mexico, at every step, to arrest hostilities by accepting it. One great objection to Ihe attainment of peace, has undoubtedly arisen from the fact that Mexico has been so long held in subjection by one faction, or military usurper, after another; and such has been the condition of insecu rity in which these successive governments have beenplaced, that each has been deterred from making peace, lest, for this very cause, a rival faction might expel it from power. Such was the fate of President Herrera's administration in l&' lö, for being disposed even to listen to the overtures of the U. States to prevnt the war, as is fully confirmed bv an official correspendence, which took place in August last, between him and his government, a copy of which is herewith communicated. For this cause alone the revolution which isplaced him from power was set on foot by Gen? Paredes. ?uch may be the condition of insecurity of tho present government. There can be no-doubt that the. peaceable and" well-disposed inhabitants of Mexico, are convinced that it is the true interest of their country to conclude an honorable peace with the U. States; but the apprehension of becoming the victims of some military faction or usurper have prevented them from manifesting their feelings by any public act. The removal of any such apprehension would probably cause them to speak their sentiments, and to adopt tho measures necessary for the restoration of peace. With a people distracted and divided by contending factions and a government subjected to constant changes by successive revolutions, the continued successes of our armies may fail to secure a satisfactory peace. In such an event it may become proper for our commanding generals in the field to give encouragement and assurance of protection to tho friends of peace in Mexico, in the establishing and maintenance of a free republican government, of their own choice, always willing to conclude a peace which would be just to them aud secure to us the indemnity we demand. This may become the only mode of obtaining such a peace. Should such be the result of this war which .Mexico has forced upon us, it would thus be converted into an enduring Messing to hetvelf. After Gliding her lorn and distracted by faclions.and ruled by military usurpers, we should then leave her with a republican government, in theeujoj inent of real indepeiidenre and domestic peace and pmiehiy, per tunning all her relative d Jtiea in the treat lainily nf nations, and promoting her own happiness by wise laws and their faithful execution. lfaner affording the encouragement and protection ; alter all the persevering and sincere efforts we have made Irotii the umiiierit Mexico commenced the war, and prior to that lime, to adjust our difficulties with her, we will ultimately fail, men we shall have exhausted all honorable mean in pursuit of peace, and must continue to occupy her country with our troops, taking the lull n.eafure of Indemnity with our own hands, and must enfoice the terms which our honor demand. To act otherwise, ia the existing elate of things ifi Mexico, and to withdraw our army without a peace, would nc ouly leave a'l the rungs ot w hieb we complain unredressed, bur would be the signal fur new and fierce civil difcsetu-ion and new revolutions, hostile to peaceful relations with Ihe United State. Ursides, there is danger, if our Ironp should be withdrawn before the peace is concluded, that the Mexican people, wearied h ith successive revolutions and tlepiived of protection kit their nervous and property, might be inclined lo yield to foreign influence, and lo erat themselves upon some European monarchy lor prolectiou from Uie anarchy and suireritig which would eusoe. Thin, for our own safety, and in pursuance of established policy, we sliould be compelled to resist. U e could never consent that Mesico should be thus converted into a inon; tchy, governed by a foreign prince. Mexico is our tieit iieiglit or, and her boundaries are coutinunu with nur own, through tbe hole extent across the North American continent, from ocean to ocean. I'olitically and commercially we have Ihe deepest interest in tier regeneration and prosperity. Indeed, It is impossil b), with a just regard to our own safely, we can become indifferent to her fate. Il may I thiit the Mexican government and people have misconceived or miHinderrlnod or miMonstrued our fix lie trance and our objects in desiring lo conclude an amicable adjustment of the ejicting dilhcultirs between Ihe two countries. They may have supposed that we would submit lo terms degrading to the nation ; or tliey may have dniwn false inferences from the supposed division ol opinion in the United States on the snbjt-ctof tbe war, ami may have calculated to gun much by protracting it, and Indeed Hut we might iillimaely uhandon ir altogether, without any indemnity, territorial or other- ! w ise. Whatever mny be tlie labe impression under which they bave acted, the adoption and prosecution of tbe energetic policy proposed, unlet undeceive them. In the future, in prosecuting the war, tbe enemy must be marie to feel il premure more than Ihey b ive done. At iu commencement, it was deemed proper to conduct it in a spirit ol forbeurance and liberality. With this end iu view, en ly measures weie adopted to conciliate, as fir as a tale of war would permit, 'he mas of the Mexican population, and the war was waed not again! the peaceful inhabitants of Mexico, but against their faithless government, which had commenced Inutilities. To remove frum their minds false impiessioti, whw-h their ioteietted ruleis had artfully attempted to make, that tHe war on our pait ai war of conquest, that it was a war against their religion and against their chutches, which were to be destroyed and overthrown, and that rights of peisons and of piivjte piopeity would be violated, to icmore llxse fje impressions, mir commanders in the field were directed yciupuluusly to respect their religion, their chuiche, and their church pioperty; which wi-ie in no manner lo be violaled. They were diiecte d also to repect Ihe tights of persons and propeily tf all who should not lake up arms agxiust US. Assurances to this effect were given to ihe Mexicans by Maj. Geo. Taylor, in a pioclamaii n issued in pursuance of insii uciious fivin the Sf-ctetary of War in Ihe moo 4 of June, IS43, and again by Maj. Gen, Scott, who acted upon hin own convictions of the proptieiy of iu:ti it, iu a ptocUmati m of the I Ith nf Mjy, 1847. lathis spiiitof liberality and conciliation, and with a view lo prevent tbe body of the Mexican population from taking up aims against us, was the war conducted i n our part, l'rovioious aud other supplies furnished lo oue atmies by Mexican citizen weie paid fur at fair and liberal price arced upon by the parties. After the lapse of a few months it became appaicot that these assuiauces and this milti treatment had f-iled t ) pioduce the desired e tree I upon the Mexican popuUsion. This war ha bei n conducted, upon our part, accoidtug to the umst humane and Itbeiil piiucifle objyived by civilised nation j it was wa;-

ed in a far difiVreut spirit on the pait of Mexico. Not spprebiatiii our foi beaiancc, ihe Mexican jei ple. ganeially, became hostile lo the United States, and availed themselves cf the oppoituuity to commit the inot avage excesses upon our troop;'. Laipe dumbeis of the population took up aims, axd ei. gaging in guenilla warfaie, robbed and murdered iu this niostciuel ntaoner individual soldiers or small paities, whom accident or other causes sepatatcd from the cruiu body cf Ihe aimy. Bands of the guerrilla, at.d lubbers infected the toads, haiae-t our tiains, aud whenever it was within their power, cut off our supplies. The Mexicans having thus shown themselves to be wholly incapable of appieciatiug our foibtarance aud libeiality.it was deemed proper to change the manner of conducting the war, making them feel it pressure according lo the us'ues observed under similar ciicumstances to all other civilized

nations. Acioidingly as early as 22d Septem! er. 1S46. instructions were given by the t-'ectetary of War tu Maior Gen . Ta vlor to diaw supplies for our aimy fiom the enemy, paying foi them and to rerjune contributions tot i s suppott. In that way, be was -aiiued he could gel abundant supplies for hi foices. In directing the execution f these insnuctions, much was neccssaiity left lo the commandin officer, who was best ac quainted with the ciicumstances y which he was surrounded, Ibe wants of the army, aud tbe practicability of enforcing the measure. Gen. Taylor, on the 26. h of October, 1S46, replied from Menterey that it would have been impossible hitherto, and is so now, lo sustain the army by forced contributions for supplies. For the reasons sit:ned by him, he did not adopt me policy oi rus instructions, but ceclared his leadiness to do so, should the army io its fuluie operations reach a portion of Ihe country which may be made to supply the tioops to advantage, lie continued to pay lor the articles of supply which were diawn fiom the eoctny'a couutry. . b.milar instructions were issued to Major General Scott on the 3d of April, 1347 ; who replied from Jalapa on the 2Uth of .May, 1847, that, if it be expected that the army is to support itself by forced contribution, levied on the country, we may ruin and exasper ate the inhabitants and starve ourselves. The same direction was driven to him that had been to General Taylor. In this report. General Scott, for the reasons assigned by him, etill continued to pay for articles of supply for the army which were drawn from the enemy. . Aftej the army had reached the heart of the most wealthy portion of Mexico, i was supposed that the obstacles, which had before that time prevented. would not be such as to render impracticable, the levy of forced contributions for its support. On the 1st of September and on the Cth of October, 1847, the order was repeated in despatches addressed by the Secretary ol War to Gen. Scott; and his attention was apain called to ihe importance of making the enemy bear the burdens of the war by requirin;; them to furnish the means of supporting our army; and he was directed to adopt this policy, unless by doing 60 there was danger of depriving tlie army of the necessary supplies. Copies cf these despatches were forwarded to Gen. Taylor for his government. On the 31st of March last I caused an order to be issued to our military and naval commanders to levy and collect a military contribution upon all vessels and merchandise which mijht enter any of the ports of Mexico in our military occupation, and to apply euch contributions towards defraying the expenses of the war. Ey virtue of the rijrht of conquest nnd the laws of war, the conqueror, consulting his own safety or convenience, may cither exclude foreign commerce altogether from all s-uch ports or permit it upon euch terms and conditions as he may prescribe. Be fore the principal ports of Mexico were blockaded by our navy the revenues derived from import duties under the laws of Mexico were paid into the Mexican treasury. After their ports had fallen into our hands and military possession, the blockade was raised and commerce with them permitted upon prescribed terms and conditions. , ihey were open to the trade of all nations upon the payment of duties more moderate in their amount than those which had been previously levied by Mexico; and the revenue which was formerly paid into the Mexican treasury was directed to be collected by our military and naval officers and applied to the use of the army and the navy. Care was taken that the officers, soldiers, and Bailors of our army and navy should be exempted from the operations of the order ; and as tiie merchandise imported, upon which the order operated, must be consumed by Mexican citizens, the contributions were in effect the seizure of the public revenues of Mexico and the application of them to our own use. In directing this measure the object was to compel the enemy to contribute as for as practicable towards the expenses of the war. For the amount of contributions which have been levied in tliis form I refer you to the accompanying reports of the Secretary of War and the Secretary of the Navy, by which it appears that a sum exceeding half a million of dollars has been collected. This amount would undoubtedly have been much larger but for the difficulty of keeping open communication between the coast and interior, so as to enable the owners of the merchandise imported to transport and vend it to the inhabitants of the country. It is confidently expected that this will, to a great extent, be soon removed by our increased forces w hich have been sent to the field. Measures have recently been adopted by which internal as well as external revenues in all places in our military possession will be received and appropriated to the use of our army and navy. The policy of the levying upon the enemy contributions, in every form consistently wilh laws of rations which it may be practicable for our military commanders to adopt, should be rigidly enforced, and orders to this effect have accordingly been given. Ey such a policy, at the same time that our own treasury will be delivered from a heavy drain, the Mexican people will be mide to feel the burdens of the war, and, consulting their own interests, may be induced the more readily to require their rulers to accede to a just peace. After the adjournment of th last wion of Congres, eventi transpired ia the prosecution of the war, which, in my judgment, required a pr eater number of troops in the field than bad been anticipated. The trenpth of the army was accordingly increased by accepting the services of all the volunteer force authorized r the art cf 13th May, 1846, will. out puttirg a construction on thhl aid, the correctness ol which was seriously questioned. The volunteer forces now in the rield, with those which had been accepted lor twelve montba ant were discbarzed at the end of their term cf service, exhausuthe fifty thousand men authorized by that act. Had it been clear that a proper construction of the act warranted the services of an additional number tliey would have been called and accepted but doubts existed upon this point. The power was not cxercUcd. It was deemed important that Congress sliould, at an early period of their sesaion, confer authority to raise an additional lorre to erve Hurin the war with Mexico, and to be discharged upon conclusion and latiMcatioii of a treaty of peace. I invite the attention of Consress to the views presented by the Secretary of War in bis report upon this subject. I recommend that authority be riven by law to Cill for and accept an düilionul number of volunteers to be exercised at such time and to such an extent as the emergency may require. In nrofter.utins the war with Mexico, whilst the utmost care lint bewn taken to avoid every just cause of complaint on the part of neutral nations, and none has been Riven, liberal priviii-jrei Have been granted to the enemy in our military occupation. The t!iiticulty with tbe Brazillian government, which at one time threatened to interrupt the friendly relations between the two countries, will, 1 trusr, be speedily adjusted. I have received inlormation that a minuter extraordinary and plenipotentiary has been appointed by hia Iitiperi.il Mojinty, and it is to be hoped he will come prepiired to iidjuet the differences between the two countries in a manner acreptab'e and honorable to both. In the mean time, I have every reason to believe that nothing will occur to interrupt our ami.-aMe relations with Brazil. It has been my constant effort to maintain and cultivate the most intimate relations of friendship with all the Independent powers ol South America, and thi. policy has been attended with the happiest results. It is true that the tenement and payment of many jut claimi against these nations have long been delayed. Tbe peculir-r position in which they have been plared, and the desire on the part of my predecessor, as well as mym-lf, to grant them the utmost indulgence, have hitherto prevented these chums from being urged in the manner strict justice demanded. The time has arrived when they ourht to l-e bnnlly adjusted and liquidated, and efforts are now making for that purpose. It is proper to Inform you that the government of Peru has in good faiih paid the first instalments of the indemnity of thirty thousand dollars each, and the greater portion of tlie interest due thereon, in execution of the contention between that government and the UniteJ State, the ratifications of which were exchanged nt Lima on the 31st ol October, WG. The Attorney General of tlie L'niied State, early in August last, examined the adjudication of the claims under this convention and made hi report thereon, in pursuance of ihn act of the tlt of Ausust. ldi. The sums to which the claimants are respectively enUtK-d v. ill be paid on demand Bt the Treasury. I Invite the earlv attention of Concress to the present condition of ourcitizens in China. Under our treaty with that power American riüzensar withdrawn from the jurisdiction, whether civil or criminal, of the Chinese government, and plared under that of our public functionaries in "that country, for by these atone can our citui-m be tried and punished for the commission of any crime. By these alone can questions be derided between them involving the rihUof persons and property, rnd by these alone can coii tncts be enforced into whirli tliey may have entered, with the citiiens or subjects of foreijjn pow ers. The merchant veepeia of oilier nations lying in the waters of the five ports of China, though foreign, are under the e.xtln-ive jurisdiction of officers of theirown government. Until Congress can establish competent tribunals to try and punish crimes and to exercise jurisdiction in China, American citizens liiere are subject to no law whatever. Crime may be committed with impunity, and debts contracted without any means to enforce their payment. Inconvcniencies have already resulted from the omission of Congres to legislate unon the subject, nnd still greater are apprehended. The British authorities in China, have nlrendy 'complained that this government hns not provided for tho punishment of crime, or the enforcement of contracts ngainet American citizens in that eountry, whilst their govprnmeot has estahl shed tribunals by which .American citizens can recover debts 5ii front British B'.ihjr-cts. Accustomed, as the Chine are, to summary justice, tiiey could nut bö made to comprehend why cri-

I m'.nals, who are citizens of the Uni'edSiates, should escape with impunity, in violation cf ihe treaty of obli

gations, whilst the punishment of Chinese, who have committed any crihie airamst an American citizen, would be rigorously exacted. Itidi td the consequences might be fatal to American citizens in China, should flagrant crime be committed by any "t:e of these upon a Chinese, and punishment nt followed according to the requisition of :he Ireaty. This miht disturb, if not destroy, the friendly relations wit! tnat empire, and cause an interruption uf our valuable Commerce. Our treaties with the Sublime Forte, Tripoli, lunis. Morocco, and Tuscan, also require the iegilatiu of Congress tu carry theui into execution, though tlie necess4ty for immediate action may not be en urgent as in regard to China. The Secretary of btale has submitted an estimate to defray the expense of open ing diplomatic relations with the 1 apa.1 btatcs. Ihe interesting political events in progress in these Slates as well as our commercial interests, have rendered euch a measure highly rxpedient. Estimates have been submitted of outfits of charge d allures to the republic of Gnetamala and Equador. The mani fest importance cf cultivating the most trienuly rela tions with all the independent States of this continent has induced me to recommend appropriations necessary to the maintenance of these missions. 1 recommend to Congress that an appropriation be made to be paid to tlie Spanish government, J be distributed among the claimants in the Armitad case. I entertain the opinion that this is due to Spain under the treaty of the 20th of October, 1795 ; and moreover, from the tarnot manner in which the claim continue to be urged. So long ns it remains unadjusted, it will be a source of irritation between the two coun tries, which may prove highly prejudicial to the inte rests of ihe united Slates. Uood policy, no less than a faithful compliance with our treaty obligations, requires that the inconsiderable appropriation should be made. A detailed statement of the condition of the finances will be preented in the annual report of the Secretary of tlie Treasury. The imports of the fiscal year, on the 30th June 1547, were $14G,545,6:te, uf which the amount exported was sjS,Ull,158, leaving SlöG.534,40 in the country for domestic use. The value of the exports, for the same period, was 153,G13,G&, of which $150,637, 4G1 consisted of domestic productions, and $3,014,153 of foreijn artides. The lecei pis into the tteasury amounted to $26,346.791.37, of which theie was deiived fiom customs $23,747,S64 66 ; from sales of public lauds, $2,493,335 20; and fiom incidental and miscellaneous somccs, $100,570 51. Tbe last fiscal year, duuug which this amount was received, embraced five months, under the taiiff act cf 1S42. and seven montt.s, dulint; which the tarilT act of 1S4S was in force. During Ihe five months, under the operation of the tariff act of 1S42, the amount received from customs was $7,S42,3C6.90; Süd duiin the seven months, under the act of 1S-46, the amouDt received was $17,905,557.76. The net revenue from customs in the year erdirg on the first of December, 1S46, being the last year of the tarirJact of 1S42, wa $22,071,403, and the net revenue froia customs, duiing the year ending December 1st, 1S47, bein the first year under the opeiation of the taiilT act of 1S46, was about f 3 1,500 ,000, beiuj; an incieasc of revenue for the first year under the tariff act of IS4G, of more than $3,500,000 over that of the last year of the tariff of 1S42. The txpendituies during the fiscal year endin on the 30th June last, are $59,451, 177.6JJ of which $3,522,0S2.37, was on account of payments of principal and interest of the public debt, iucludmj treasury notes ledcemed, and not funded. The txpendituies, exclusive of payment cf public debt, were $5529,C95.2S. It is estimated that the receipts into the treasury for the fiscal year ending 30th June, 1S4S, including 1he balance in j the tieasury on the 1st of July last, will amount to42,SS6,545.S0, of which $.31,000,000 it is estimated will be deiived from customs; $3,500,000 from the saUs of the public lands; $400,000 fiom incidental sources, includine sales made by the solicitor of the treasury, and f 6,2S5,234 95 from loans already authorized by law, which with the balance in the treasury on the 1st of July last, make the sum estimated. The expenditures for the same period, if peace with Mexico shall not be concluded, and the army shall not be incieased, as is proposed, will amount, includiug the necessary payments on ac ount of piincipal and interest of the public debt and tieasuiy notes, to f jS,615,6G0.07. On the hi st of Ihe present month, the amount cf the public debt actually incuneJ, including treasuiy notes, was $45,659.659 40, The public t'ebt due on Ihe 4ih Match, 1845, including tieasury notes, was .I7,78S,793 62, and consequently the addition made to the public debt since that time is $27,S70,S53.7S. Of the loan of $23,000.0.'O, authorized by the act of 2Sth January, 1S47, the sum of $5 000,000 was paid out to the public crcditois, for exchange at par, fur specie. The remaining $18,000,000 wa oßeied for specie to the highest bidders, not below par, by an advertie-netit issued by ihe Secretary of the Treasury, and published front the 9th of February to tbe 10th of April, 1S47, wbeo it wis awarded to the several highest bidders at premium, varying from 4 of 1 per cent to 2 per cent, above par. The premium has been paid into the tieasury, and the sums awardel, deposited in specie iu the tieasury, as fast as it was needed by tbe wants of the government. To meet the expendiluies for the remainder of the present, and for the next fiscal year, ending on the 30th June, 1849, a further loan, io aid of the ordinary revenue, will be necessary. Retaining a sufficient surplus in the Treasury, the loan required for the temainder of the piesent fiscal year will be about $1S,500,OJO. If the duty on lea and coffee be imposed, aud tbe graduation of the public lands shall be made at an early period of your session, as recumnv- ided for the fiscal year, it may be teduced to $17,000,000. Tbe loans may be further reduced whatever amount of expendituretbat can be saved by military contributions collected ia Mexico. Tbe most vigorous measuie for the acquisition of these conti ibutions have been directed, and a very considerable sum is expected from that source. Its amount cannot, howevei, be calculated with any certainty. Il is rec ommended that tbe loans to be made be authoiized upon the same teitos and for tbe same time, which was authorized uuder the provisions of tbe act of the 2Sth Janury, 1S47. Should the war of Mexico be continued until the 30lh June, 1S19, it ia estimated that a further loan of S-J0,5U0,0(I0 will be required for the fiscal year ending on that day, in case no duty be imposed on tea and coffee, and the public lands be not reduced and graduated in price, and no military contributions shall be collected in Jlexico. If the duty on tea and coffee be imposed, and the lands be reduced and graduated in price as proposed, the loan may be reduced to $17,OOO.COO, and will be subject to be still further reduced by the amount of the military contributions in Mexico. It is not proposed, however, to ask Congress for authority to negotiate this loan for tlie next fiscal year, as it is probable that the loan asked for the remainder of the present fiscal year, aided by military contributions which may be collected in Mexico, may be sufficient. If contrary to my expectations, there should be a necessity for it, the fact will be communicated to Congres in time for their action during the present session. In no event will a sum exceeding SG,(MK),lK)0 of this amount be needed before the meeting of tlie 6ession of Congress of The act of the 30th July, ISIS, reducing the duties of imports, has been in force since the first of December last, and 1 am gratified to state that all the beneficial effects which were anticipated from its operation has been fully realized. The public revenue derived from customs during the year ending December, 1847, exceed ed by more than eight millions, Ihe amount of the preceding year under the act of lS42,and which was 6uperceded by it. Its effects are visible in the great and almost unexampled prosperity which prevail in almost every branch of business. While the repal of prohibitory and restrictive duties of tue act of 18-12, and tlie substitution iu their place of reasonable revenue rates, levied on articles imported according to their actual value, has increajed the revenue and augmented our foreign trade, a'l tlie great interests have been advanced and promoted. The great and important interests which had been not only too much neglected, but actually taxed by the protective policy, for the benefit of other interests, have been relieved of the burden which, that policy imposed upon them, and our farmers and plantors, under the more just and liberal commercial policy, are finding new and profitable market ! abroad for their augmented products. Our commerce is rapidly increasing, and is extending more widely the circle of international exchanges. Great as hus been the increase of our imports of the past year, our exports of domestic products sold at foreign markets have beeu still greater. Our navigation interests are eminently prosperous. The number of vessels built in the United. States is greater than daring eny period of equal length. Large profits have been derived by those who have constructed as well as by those who have navigated them. Should tho ratioofincrease iu the' number of our merchant vessels be progressive, and be as great for the future, as during the past year, tho time is not distant when our tonnaa and commercial marine will be larger than that of any other nation in tho world. Whilst the interests of agriculture, of commerce, and of navigation have been enlarged, it is highly gratifying to observe that our manufactures arc also in a prosperous condition. None of the ruinous edicts upon these interests which wero apprehended by some as the result of the operations of the revenue system established by the contrary. Tho number of the manufactories and of the amount of capital invested in them, is ntpidly increasing, affording jrratifying proof that American enterprise nnd skill employed in this branch of domestic iudustry, with no other advanbgo thau those fairly and incidentally accruing from a just system of revenue duties, are abundantly able to meet successfully all competition from abroad, and still derives fair and remunerating profits. While capital invested in innniifaf t Jres is j ieldin adequate nnd lair pro tits under the liev aytteui, the wn-eaf labor, whether .tnploied in iiiauufricturis, agriculture, or navigation, have b.-en augmented. The toiling millions, w hoo daily labor furnishes the