munications between the coasts arid the interior, «o aa to ea iblc the owners of the merchandise Import 'ed, to transport and vend it to the inhabitants of the country., It la confidently expected that this difficult tjrWlUi in a greilteXloril, be soon removed by oiir in. creased forces Which have beeii sent tb tho field. Measures liavoTeccntly been adopted by Which tho internal aa well os external revenues of Mexico, liv all places in.our military occupation, will ;be seized and appropriated to the use of our army und navy. Tho policy of levying upon tho enemy, contnbu lions in every form, consistently with'lhe laws of na tions, which it may be practicable , for oiir military commanders to adopt, should sn. my judgement be rigidly enforced; - and orders to this effect have accor dingly.been given. By such’ a pblicy, ul the same time that'our own-treasury will bo relieved from n, heavy drain, the Mexican people-will bo made to feel the burdens of tho war. apd. consulting(lioirown in terest, may.be induced the more readily to require, (hole rulorf to accede tb a jd«t peace. After the adjournment of the last session of Con gress, events transpired in the prosecution of the war which, iniriy judgement, required a greater number oftrpope.in the field than had been anticipated. 'I ho strength of (ho. army was accordingly increased by “accepting” the services of all the volunteer forces authorized by the act of the 13lh 0fM«y,1846, with* but putting.a construction on that qcl, thf correct ness eff which was seriously questioned. . ..Tho,volunteer forces now in the field, with those Which had been, “accepted” to “serve for, twelve taoriths,” and were discharged at the .end‘of their time el scrviccj exhaust the fifty thousand men nu- Ihoriscd by that act. Had it been clear that u proper construction of that act warranted it, the services ot bn additional number would have been callqafor and accepted but doubts existing on this point,Thopow cr‘was nqt exercised. - --Jk It is debmed important that Congress sHßuld, at bn early, period of their session, confer ibe-awhbrity lb raise an additional regular force to servo .during the war with Mexico, and tb bo discharged upon the conclusion an d ratification of a treaty of peace. I invite the attention ofCongrcss to tho views presen ted by the Secretary of War in his report' upon this subject 1 • I reecommentl, also, that authority be given by law to call for and accept tho services of on addi tional number of volunteers, to be exercised at such time'and to such extent as the emergencies of the 'service may require.' , "In prosecuting the war with Mexico, whilst the almost care has been taken to avoid every just canto of complaint on the part‘of neutral nations, and none. , has been given., liberal privileges have been granted to llicir commerce in tho ports of the enemy in our military occupation. ~ The difficulty with the Brazilian Government! which at orio lime threatened to interrupt the friend ly relations between the two countries, will, I trust, be speedily adjusted. I have received information that an'envoy oxtrordinnry aml minister plenipoten tiary to the United Slates will shortly bo appointed 1 by his Imperial Majesty, and it is hoped that ho will < come instructed and prepared to adjust all remaining i differences between the two governments in a man- ' nor acceptable and honorable to both. In tho mean- • time, I hare every reason to believe that nothing will occur to interrupt our amicable relations with 1 Brazil. ‘ It has been my constant effort to maintain and < cultivate the most intimate relations of friendship i with all the independent powers of South America ; 1 and (his policy hna been attended with the happiest ! results. It is true', that the settlement and payment of many juslclaims ofAmcrican citizens against these I nation# have been long delayed. 1 The peculiar position'm which they have been i placed4.and.lho desirooh (he parlof my predecessors, 1 as well os myself, to grant them the utmost indul gence,- have hitherto prevented these claims from 1 being urged in & manner demanded by strict justice. 1 The time has arrived when they ought to be finally < adjusted and liquidated, and efforts are now making for. that purpose. - . It is proper to inform you that tho government of Peru ha# in good faith paid the first two instalments of the indemnity of thirty thousand dollars each.and the greater portion of the interest duo thereon, in execution of the convention between that government and the United States, the ratifications of which wore' 1 exchanged .at. Lima on the 31al of October, 1846. Tho Attorney General of the United Slates, early in'August last, completed the adjudication of the claims updor this convention, and made his re* port thereon, in pursuance of tho act of the eighth of August, 1846. . Tho stuns to which.tho claimants are respectively entitled will bo paid on demand at the troasbry.' ’ , '. T invite ihs early' attention of Congress to tho present condition of our citizens in China. Under our treaty with that power, American citizens are withdrawn from the jurisdiction, whether civil or criminal, of the Chinese government, and placed ' / tinder that of our public functionaries in that country. By these atone can our citizens be tried arid .punish ed for the commission of any crime; by these alone can questions be decided between them, involving tho rights of person and properly; and by these alone can contracts be enforced, into which they may have entered with (he citizens or subjects of foreign powers. *. - • The merchant vessels of the United States lying In (he waters of (he five ports of China opcmlo (of* elgn commerce arc under the exclusive jurisdiction ofofficcrs of (heir own government. Until Congress shall establish competent tribunals to try and punish crimes, and (oexerciqc jurisdiction in civil*case# in Cliina, American citizens there dro subject to no law whatever. Crimes may be committed with impunity, and debts may be contracted without any means to enforce their payment. Inconveniences havoalreu. dy . resulted from the omission of Congress to legis late upon tho subject, and still greater ore appre hended. The British authorities in . China, have already complained that this government has not provided for the punishment of crimes, ortho enforcement of contracts against American citizens in that country, whilst their government haa established tribunals by which an American citizen can recover debts duo from Drillsh subjects. ' Accustomed os the Chinese nro to summary'jus. tice, they could not be made to comprehend why .criminals whoaro citizens of the U. Stales should escape,with impanily.in violation of treaty obliga tions, whilst the punishment of. a Chinese, who had committed nriy criinosiguinsl any American citizen, would be rigorously lndued, the consequen ces might bo fatal to Arnoncan citizens in Citing should n flagrant crime bo ccAimittcd by any one ol them upon a Chinese, amlywhould trial und punish merit not follow .according' to llw requisitions of ibe treaty* - This might disturb, if not destroy, our friendly relations with that empire, arid cause an Interruption of our valuable commerce. Our treaties with thoSubllme Porte, Tripoli, Tunis, Morocco, and Muscat, alsp require the legislation of Congress to carry them into execution, though the necessity for immediate action may not bo so urgent . as in regard to China. The Secretory of State has submitted an estimate to defray the r exponses of opening diplomatic relations with the Papal Slates. The interesting political events oow in progress In these States, as well as a just regard to our commercial interests, have in rny opinion, rendered such u measure highly expedient. Estimates have also been submitted for (ho outfits and' salaries of charges d*afluir« to the republics of Bolivia, Guatemala and Ecuador. The manifest importance of cultivating (Fie most friendly relations with all the independent States upon this continent has induced me to recommend appropriations noocs* •ary for (lie maintenance of these missions. I recommend to Congress that an appropriation be made, to be paid (o the Spanish government for the purpose of distribution the claimants in **the Amlslad case.” 1 entertain the conviction that this (sduo toSpain un'dcr the treaty of October, 1705; and, moreover, that, from the earnest manner ' in which tho claim continues to be urged, so long ns it shall remain unsettled, it will bo a source of irrita tion and discord between the two countries which may prove highly prejudicial to tho Interests of tho United Stales. Good policy, no less than a faithful compliance with our treaty obligations, requires that the inconsiderable appropriation demanded should be made. A statement of tho condition of tho Jinan* will the annual report of the , - Secretary of the riestary. The imports for the last , fiscal year, ending ontho3oth Juno, 1847, wore of the value of one hundred end forly.»l* million five 1 hundred and fortyfivo thousand six hundred and thirty-eight dollars} of which the amount expoited 1 wits eight millions eleven thousand onehundird and fifty-eight -dolfars, leaving one hundred.and thirty, eight million five hundred and lliiriyfour thousand) ; fopr fmndrod and eighty dollars in tlp» country for [iopiestic uw. • • | The value of the exports for the same per iod was ms hundred and (irtyolghl million .in Jmndred und IbrlMlgllt thousand »i* .hundred and. Iwonty-lwn dollar, l ofwliich ono hundred and tidy million «i» , hundred and thirty-seven thousand four hundred and . sixty-four dollars, consisted of domestic productions, j and eight million eleven thousand one hundred and fifty-oight dollars of foreign-articles. . -The-receipts into'the treasury for the same period amounted to twenty-six millions iHroq hundred und y forty-six thousand seven hundred,.and ninety dollars k . and thirty-seven cents* of which there was derived I frouv customs twenty-three millions seven hundred and forty-seven thousand eight hundred arid sixty . four dollars and sixty-six cents; from sales of public • lands, two millions four hundred and ninety-eight thousand three hundred and thirty-five dollars and ; twenty cents; and from-incidcntal and miscollalicous one hundred- thousand five, hundred . and seventy dollars'and finybuc cents. - The last fiscal year during which this amount was received cnißru ced five|monllis under the operation of, the .tariff act of 1842, and seven months during which tho tariff act of 1846 force. During.thb five- months under the act. or 1842, the amount roceWcd from customs; was seven millions eight hundred and forty twoTihoasarid three hundred nnd'six dollars and ninety cents, and during the seven mqnlhh under the act ot 1846, tho amount received was fifteen nlitllpns nine hundred and five thousand five hundred and fifty-seven dollars and seventy-six cents. •The net.revenue' from ciisldfns during the year ending on the first of December, 1846, being the last year under the operation of the tariff act of 1842, was twenty-two, million nine hundred and seventy-one thousand four hundred and three dollars and ton cents; and the net revenue from customs during.the year ending on the first of December, 1847; being the first year under the operation .of the tariff act of 1846, was about thirty-one million five hundred thousand dollars; being an incroas*«x>r revenue for the'first year under the .tariff not of, 1846, of more than eight million five hundred thousand dollars over , that of the last year-under the tariff 0f1842. The expenditures during the fiscal year ending on ■ the 30th of June last, wore fifty-nine million four i hundred and - fifly-bno thousand ono hundred and seventy-seven dollars and sixty-five cents; of which • three million five hundred and twenty-two thousand i and eighty-two dollars and thirty-seven cents was on account of payment of principal and interest of the public debt, including trtti®ry notes redeemed and not funded. The cxpendllljfes, exclusive of payment of public debt, werefifty-fiafmillions nine hundred and twenty-nine thousand find ninety-five dollars and twenty-eight cents. It is estimated that the receipts from the treasury foe the-fiscal year'ending on the 30lh of June, 1848, including the balance in the treasury on the Ist of July last, will amount to forty-two million eight ■ hundred and eighty-six thousand five hundred and forty-five dollars and eighty cents, of which thirty-one million, it is estimated, will be derived from customs; 1 three million five hundred thousand from the sale of j tho public lands; four hundred thousand from inch dental sources, including sales made by the Solicitor of the Treasury; and six milliohtwo hundred and eighty-five thousand two hundred and ninety-four i dollars and fifty-five cents from loans already autho rized by law, which, together with the balance in the treasury on the first of July last* sum estimated. The expenditures for the same period, if pease with Mexico shall not be concluded, and the army., shall be-ineroased as is proposed, will amount,inclug j ding the necessary payments on account of principal I and interest of the public debt and treasury notes, to : fifty-eight million, six hundred and fifteen thousand, six hundred and sixty dollars and seven cents. On tbo first of the present month, the amount of the public debt actually incurred, including treasury notes, was forty-five million six hundred and fifty, nine thousand fix hundred 2nd fifty-nino dollars and forty cents. The public‘ debt duo on the 4th of March, 1845, including treasury notes, was seventeen million seven hundred and eighty-eight thousand seven hundred and ninety-nine dollars and sixty-two cents; and consequently the : addition.made to the public debt since that time is twenty-seven million eight hundred and seventy thousand eight, hundred and fifty-nine dollars and seventy-eight cents. Of tho loan of twenty-three millions authorized by tho act of the twenty-eighth, of January, 1847, tho sum of five millions was paid out to the .public credi tors, or exchanged at par for specie; the remaining 'eighteen millions was offered for specie to the highest bidder not below par, by an'advcrliscmcnl issued by the' Secretary of tbu Treasury, and published from the Dili of February until- tho 10th of April 1847, when it was awarded to tho several highest bidders, at premiums varying (irpm one-eighth of one per cent, to two per cent.-above par. TJIO premium hart been paid into the.treasury, and tho sums awarded deposited in specie in the treasury as fast as it was required by tho tho. government., To meet the expenditures for the remainder of tho present and for tho next fiscal year, ending on the 30lh of June, 1849, a further loan, in aid of the or dinary revenues oflhe government, will bo. necessary. Retaining a sufficient surplus in the treasury, the loan required for tho remainder of the present fiscal year will bo about eighteen millions five liundred : thousand dollars. If the duty on tea and coffee be imposed,and the graduation of tho price of the public lands shall bo made at an early period .of your sess ion, so recommended, tho loan for the.present fiscal year may be reduced to seventeen millions of dollars. The loan maj lie further redured by whatever amount of expenditures can bn saved by*-military contributions collected in Mexico. The most vigor ous measure# for the augmentation of these contri butions have bean directed, and a very considerable sum is expected from that source. Its amount can not, however, be calculated with any certainty. It is recommended thxt tho loan td be made ho author ized upon the same terms, and for tho same time, ns that which was authorized under the provisions of tho act oflhe twenty-eighth of January, 1847. Should tho war with Mexico ho continued until the thirtieth of Juno 1849, it is estimated that a fur* thcr loan of twenty millions five hundred thousand dollars will ho required for the fiscal year ending on that day, iri case no duty be imposed on tea and cof* fee, and the public lands nc not reduced and gradu ated in price, and .no military contributions shall bo collected in Mexico. If the duty on tea and coflee be imposed, and the lands bo reduced and' graduated in price, as proposed, the loan may bo reduced to soyontccn millions of dollars, and will bo subject to be still further reduced by the amount of the milita* ry contributions'which may he made in Mexico., It is not proposed, however, at present, to ask Congress for authority to negotiate this loan for the fiscal year, os it is hoped that the loan asked for the I remainder of the present fiscal year, aided hy milita ry contributions which may he collected in Mexico, . may ho sufficient. If, contrary to. my expectation, r there should he a necessity for It, tho fact will be i communicated to Congress in time for their action during the present session. In no event will a sum exceeding six millions of dollars of this amount bo f needed before tho m- eting of tho scission of Congress o in December, 1848. The act of Ihe thirtieth of July, 1840, “ reducing the duties on imports,’* has been in force since the .first of December last; and I am gratified to state, that all the beneficial effects which were anticipated from its operation have been fnlly realized; The public reMMiue derived from customs during the year ending on the fust of December, 1847, exceeds by more than eight millions of dollars tho amount re ceived in (ho proceeding year tinder tho operation of the act of 1842, which was superseded and repealed by it. Its effects ore visible in tlie great ond almost unexampled prosperity which prevails in every bronch of business. While the repeal of the prohibitory and restrictive 1 duties of the act of 1642, and thq substitution in their place of reasonable revenue rates levied on ar ticles Imported according to their acluai value, has increased .(ho revenue and augmented our foreign trade, all the great interests of the country have been advanced and promoted. Tho great and Important interests of agriculture, which had been not only too much neglected, but ac tually taxed under the protective policy for tho bene fit of other interests, hue been relieved of the burd ens which that policy imposed on them; and our /arincrß and planters, under a more just and liberal j policy, ore finding nevr and profitable markets abroad 1 for their augmented products, ’ j’ I *' i Our commerce is rapidly increasing, anif,i« cxlorr -1 ding more widely the circle of Interna llonal exchanger, Great as has been the increase of our imports during tho past year, our exports of domestic products, sold in foreign markets hate been still grcaicr 1 . Our navigating interest is eminently ptosperous. Tho number of vessels built in the United States Iran been greater than during any preceding period of equal length, Large profits have been derived by those who haveconstrnclcd as woll ns those who have navigated them. Should tho ratio of incronso in the number of our merchant vessels bo progressive, pin) lu» ns grent for tho future as during the past ycur, llio itmolß not diatani when our tonnage and commer cial marine will bo linger than that of any other no tion in tho world. ' ■ ** I Wnilst the interest of agricultiftc, of commerce, , and of navigation have.bcon enlarged and invigoia i Vcd, itjs highly, gratifying to obaci|VQ,thot ourmanu facfurcr.s aro also in a prosperous jpbndflfon. IVono I of the ruinous effects upon this interest, which were apprehended by some, as the result'of. the operation [ of the rcveimo eystom cstaldishcdby the act of 1846, have been experienced. 1 •. On the contrary, the number of manufactories, and ttye amount of capital InvestbdUn them, is steadily and rapidly increasing, affording gratifying proofs that American enterprise and skill employed in this branch of domestic industry, advanta ges than those fairly and incidentally Accruing from a just system of revenue duties, are abundantly able to meet successfully ol| competition from abroad, and still derive fair and remunerating profits. • ' While capitol invested in manufactures is yield ing adequate and fair profits undct'iho new system, the wages of labor, whether employed in manufac tures, ogriculturc, commerce, or navjgat(ion, have been augmented. .The toiling millions, wUoso'daUy labor furnishes the supply of food .and raiment, and all the necessaries and comforts of life, ar.Oj'Mccivir.g higher wages, and more steady and permanent employmaijt than in any other country, pr at any previous period of our own history. , . Wn successful have been all braridhes of our indus try, that a foreign war,'which generally diminishes the resources of a notion, has in.noilcssenliul degree retarded our onward progress, or cb&kcd oar general prosperity. . ■ r V!. With such.gratifying evidences of prosperily, and of-tho successful operation of the revctfaeactof 1846, every consideration of public policy tecommends that it shall remain unchanged. .ft ir-hbped (hat the system of impost duties, .which, it established, may he regarded as the permanent policy qrthe country, and that the great interests affected by If may not again bo subject to bo injuriously they,hare ; heretofore, been, by frequent and.aonjeliines sudden changes. • . 1 . For the purpose of increasing the revenue, and ( without changing or modifying thsJiejkaJimposcd by ; the act 0f.1846, on the dutiable articles embraced by < its provisions, I again recommend lo.your favorable i consideration tho expediency of levying a revenue i duty on tea and coffee, The policy: which .exempt- j cd these articles from duty during peace, and when | the revenue to be derived from them' was not needed, . ceases to exist when the country ln waT > and requires the use of all its available resources. , It-is a tax which would bo ab generally diffused j among the people, tbi tit woald.ibo-fejt oppressively , by none, and bo complained of by nene. It is be- * Moved that there are not,.in the list nrti- , clcs, any which are more properly the subject of war duties than tea and coflee. It is estimated that three | roiljjpns of dollars would be derived, annually by a , moderate duty imposed on these articles. ] Should Congress avail itself-of .this additional source of revenue, not only would the amount of tho public loan rendered necessary; by the war with Mex- . ico bo diminished to that extent, but the public cr d it, and the public confidence in the ability and de termination of the g> ■vernment to its engage ments promptly, would he more firtply established, •*nd the reduced amount of the loah.jvhich it may be : ftanftsary to negotiate could probably bo obtained st meaper rotes. . Congress ss« therefore, called Qprtt\;to determine whether it la wiser to impose the! wjr duties recom mended, or, by omitting to do ab, increase the public debt annually three millions-of dollars so long as loans shall be required to prcsecufe the war, and af terwards provide, in some other formate pay the semi annual interest upon it, and ultimately to .extinguish the principals . . . “V. .. If.-in adnilion, to those duties, Congress should graduate and reduce the price of such of the public lands as oxperienc has proved will not coromnnd the price placed upon them by government, an addition* al,annual income to.the- treasury bM)elweon half a million arid a million dollars, it is. ektlmatcd, would bo derived from this source.. Should’,both measures receive ihe sanction of amount of public debt neccpsary to be contracted during the continuance of tbo war would be reduced nearly four millions of dollars. The duties recommended, to be letfed on tea and coffee, ilia proposed, shall be tbclr dura tion to the end of the war, ami until if public debt rendered necessary to. bo be discharged. Tho'amount of the debt to bet contracted should be limited to thtf’leweet practicable] sum, and should be extinguished as early after the conclusion of the wares iho means op the treasury will permit.. . 'With this view,'it is recommended that, as soon as tbo war shall bo over, all tho surplus in the’ treas ury, not needed for other indispensable objects, shall constitute a sinking fund, and be applied to the pur chase of the funded debt, and that authority be con ferred by law for that purpose. The act of the 6th of August, 1646, “ to establish a warehouse system/* has hern in operation, .more than a year, and has proved to be an important nux- .illary to the tariff of 1646, in -augmenting the reve nue, and extending (ho commerce of the.country- While it has tended to enlarge.commerce, U has been beneficial to our manuafacturcs, by diminishing forced sales at auction of foreign goodi at low prices, to raise the duties to bo advanced on them and by checking fluctuations in the market. The system, although sanctioned liy the experi ence of olhercountries; was entirely new in the U. States, and is susceptible of improvement in some of its provisions. The Secretary of the treasury upon whom was devolved large discretionary, powers in carrying this measure into effect, has collected, and is now collating the practical results of the system in other countries, where tl has long been establish ed, and will report at an early period of your session such further regulations suggested by the Investiga tion as may render it still more effegftvo and benefi cial. ' - Ry the act to "provide for the belter organization of the treasury, and for the Collection, safe keeping, and disbursement of the public revenue," all bonks were discontinued as.fiscal agents of the govern ment, and the paper currency issued liy them wasi no longer permitted to be received in. payment of* public dues. ■' i The constitutional treasury created by this neti wont into operation on the first.of January last. XJn-1 dcr the system eslabliehcd by it, the public money* have been collected, solely kept und disbursed by the direct agency of officers of the government in gold and silver; ond transfers oflorgo amounts have beta mado from points of collodion to points of disburse* ment, without loss to the treasury, or injury or in* convenience to the trade of the country* . While the fiscal operations of the government Haro been conducted with regularity and east, under (his system, it has hud n salutary effect in oljecklhg and I preventing on undue inflation of the paper currency, issued by Clio banks which exist under Stale qhar* ! ters. Requiring, as it does, all dues to the govern* ment to be paid in gold and silver, its effect is to re strain excessive issues of bunk paper the bunks ! disproporlioncd to tho specie in their vaults, for' tlio i reason that they are at all limes liable (t> bC'cullcd I on by tho holders of their notes for IhclrVodpmpllon, i in order to obtain specie for tho payment’bfaullcs I ond other public dues. ’ ■ ' Tho bunks, therefore, must keep (holr business within prudent limits, and bo always in k condition to meet such colls, or run tho hazard echoing com pelled to suspend specie payments, and ‘be thereby discredited. Tho amount of specie imported inlqtho United Slates during the last fiscal year was twenty, four million one hundred and twenty-one thousand two hundred and eighty nine dollars; of which there, was retained In tho country twcntvMwo'million two! hundred and seventy,-six thousand one hundred and BQventy dollars. Hod the former financial system prevailed,and the! fmblio moneys been placed on deposite in banks, near* y the whole bf this amount would have' gone into! their vaults, not to bo thrown Into circulation by them, but to bo withheld, from the hands of the people as a currency, and made tho basis of now enormous issues of bank paper. A largo proportion of tlio apoclo imported has been paid into the treasury for public dues; am) after hav ing boon, to n groat extent, recoined at liio mini, has beep paid out to tho public creditors, and gone into circulation as* a currency among tho people. The amount ofgold jind silver coin now in circulation in tho country la larger Ilian at any former period, Tlio financial system, established by tho constitu tional treasury liue been, thus far, eminently success. /11l in its operations { and I recommend an ndhoronco to nil its essential.provisions, and especially to (hat vital provision which wholly soporotos the govern* merit from nil connexion with banks, and excludes bank paper from nll rovcnuo receipts. , ' In soim* ofita (li*(nlls, not invoking flu genbraf principles, the 'system la defective, and will ro quirn modification. These defects, arid such amendments as oro deemed important, were set , forth in the last annual report of the Secretary of • the Treasury. ’ These amendments are again re-, • .commended ib llib early and favorable considera tion of Congress, ' ■ ', 3 i During the past year, the coinage at the mint i and its branches has exceeded twenty millions of . dollars. This has consisted chiefly in converting the coins of foreign countries Into. American coin, j The largest amount of foreign coin imported hbs | been received at New-York; and if a branch mint! were established at that city, ail the foreign coin received at that port could at once be converted into our own coin, without the expense,.risk, and delay of transporting it to the mint for that pur pose, and the amount recoined would be much larger. * * Experience t has proved that foreign coin, and especially,'foreign gold coin, will not circulate ex tensively as a currency among the people. The important measure of extending obr specie circu lation, both of gold and silver, and of diffusing it among the people, can onlybeeffected by conver ting such foreign coin into American cotm t .J re peat the recommendation contained'in my last annual message for the establishment of a branch of .the mint, of the United States at‘the city of New York. All the public lands which had been surveyed and were ready for market have been .proclaimed for sale during die pnstyear. The quantity offered and, to be offered for sale, under proclamations issued since the first of January last, amounts to nine million one hundred and thirty-eight thou sand five hundred and thirty-one acres. ‘The prosperity of the western stales ami territories in which these lands lie, will bo advanced by their speedy sales. By withholding them from mdrket, theifigrowih and increase of population-would- be retarded, while thousands of our enterprising and meritori ous frontier population would be deprived of the opportunity of securing freeholds for themselves and their families. But in addition to the general considerations which-rendered the early sale of these lands proper, it was a leading* object at this time to derive as large.a sum as possible from this source, and thus diminish, by that , amount, the public loan rendered necessary by the existence of a foreign war; It is estimated that not less than ton millions of acres of the public lands will be surveyed and be fn a condition to be prolcaimed for sale during the year 1048, In my last annual message I prescnled the rea sons which, in my judgment, rendered it properto graduate and reddcetKe price of such of the public lands as have remained unsold for long periods after they had been offered for sale-at public auc tion Many millions of ’ac.ros of public. lands lying within the limits of several of the western states have been offered in the market, and been subject to sale at private entry for more than twenty years, and large quantities for more than thirty years, at tho lowest price proscribed by the existing laws, and it has been found that they will not command that price... ... They, must remain unsold and uncultivated for anindefinite period,unless the price demanded for them by the government.shall be reduced.' No ; satisfactory reason hr perceived, why they should be longer held at rates above their real value? 1 At the present period an additional reason exists for adopting the measure recommended. VVlien the country is engaged in a foreign war, and we must necessarily resort to loans, it would seem te be tho dictate of wisdom that we should avail ourselves of- all our resources, and thus, limit the amount of the public indebtedness to, the* lowest possible sum. I recommend that the.exisling jaws on the sub ject of pre-emption rights bo amended and modi fied so as to operate prospectively, and. to embrace all who may settle upon llio public lands and make improvemfiolflJipon them before they arc surveyed, as well as afterwards, in all cases where such set tlements may be made after.the Ind}&h:tiUe shall have been extinguished. •> If the rights of pre-emption be - thus extended, it will embrace a large and meritorious class of.our citizens. It will Increase the number of small .freeholders npon our borders, who'will be enabled thereby to educate, their children and bthetwise Improve their condition, while they Mrlll be found at all limes, as they have eve; proved themselves to be, in ihe hour of danger, to their country, among our hardiestand bestvoluntecrspldiers; ever ready to tender their services In cases of emergency, and among the last to leave the field sis long as an ene my remains to be encountered. Such a policy will also impress these patriotic pioneer emigrants with deeper feelings of gratitude for the parental care of their government, when they find their deaiest interests secured to thorn'by the permanent laws of the land, and that they arc no longer in danger of losing (heir homes and their hard-earned improvements by being brought into competition with a more wealthy class of pur chasers at the land sales. The attention of Congrcsswos Invited, at (hair lasi and the percceding session, to the importance of establishing a' Territorial government over ourj possessions In Oregon ; and it Is to bo regretted that j there was no legislation on the subject." Our citizens' who inhabited that distant region of country are still I left without the. protection of our laws, or any regular ly organized government. Before the question of limits and boundaries ofllio territory of Oregon Vas I definitely nettled, from the necessity of their condition, the inhabitants had established a temporary govern ment oflheir own. . ■ ~ , v Besides the want of legal authority for Contfndfng such a government, it is wholly inadequate to protect them in their rights of person and.properly, or to secure to them the enjoyment of the privileges of other citizens, to which they are entitled under the constitution of the United Stales. They should have iho right of suffrage, be represented in a Territorial legislature, and by a delegate in Congress; and possess all the rights and privileges which citizens of other portions of the Territories of the U. Slates have heretofore enjoyed or may now enjoy.' Our judicial system, revenue laws,laws regulating trade and intercourse with the Indian tribes, and the protection ofaurlaws generally, should bo extended I over them. . ! In addition to (he inhabitants in (lint territory who had previously emigrated to it, large numbers of our citizens have followed them daring the prcsbnt year; and it is not doubled that during the next and subse quent years (heir numbers will.bo greatly increased. Congrcis,at its last session, established post-routes loading, to Oregon, li'nd between'different points -.within that territory, ami authorized the establish ment of post-otficos at ** Astoria, and such other places on (ho coast of (ho Pacific, within tho territory uf the U. States, as the public interests may require.” Post-otfiecs have accordingly been established, deputy postmasters appointed, and provision made for the transportation of tho moils. The preservation of peace with tho Indian tribes residing west of the UocUy mountains, will render It proper that authority be given by law for the np pointmcnl of an adequate number of Indian agents to reside among them. I recommend that a surveyor general’s office bo established in that territory,and that tho public lands bo surveyed, and. brought into market at an curly period. ... X recommend, also, that grants, upon liberal terms, .of limited quantities of the public lands bo made to all citizens oftho.UnUod Slates who hove emigrated, or may hereafter within a prescribed period emigrate, to Oregon, and settle upon them. Those hardy and adventurous citizens, who Imvo encountered tho dan gets and privations of a long and toilsome ionrhey, and have at length found an abiding plaeo tor them selves and their, families upon tho utmost verge of our western limits, should bo secured in (ho homes 1 which (hoy have improved by their labor. I refer you (o tho accompanying report of (ho Sec-! ‘ tnry .of War for ft dctailod'Wsount of the operations • of the various branches oftho public sorvlco connect- 1 i ed with the department under his charge. Tho du -1 ties devolving on this,department have been unusual i Jy onerous and responsible during the past year, and i liq'ft been discharged with ability and success. v Pacific relations Continue to exist with the various ‘ Indian tribes, and most of them manifest a strong ’ friendship for the United States. Some depredations 1 wore committed during tho past year upon our trains transporting supplies for the army, on tho road be tween tho Western border of Missouri and Santa I i These depredations, which are supposed to have been committed by. bonds from tho region of Now Mexico, liavo bocnafrostcdby tho presence nfa mil* itary force, ordered but for that purpose. Some out* rages havo' bdcn porjpolrnledby a portion of the north western bands upon and - comparatively defenceless neighboring- tribes. Prompt measures, were'taken. 10 prevent such occti/faridea Ucl'wccn one and two.thousand Iridiahs belonging* -to several tribes, have been rcmdvcddurlng thc-yenr from the oast.of the Mississippi to the country allot* ted to them west of that river, as their permanent homo fandarrangcmcnls have becn-mado for others 16 follow.- 1 "' ' . i - Since the treaty of 1846 with tho Cheorokeep, ,thc feuds among: them appear to have they, have become more united and contented than they have’been for many years past. The commissioners appointed in pursuance of the act of Juno twenty* seventh, 1846, to settle claims arising Under the trea ty of 1835*36 with that tribe, have executed their du ties ; and after a patient investigation, and u full and fair examination of.all the eases brought before, them, closed their labors in the month of July last. •. This is tho fpur.th board of commissioners which lias been organized under this treaty. Ample oppor* tunily has been afforded (6 all those interested, ,• to bring forward their claims. tfo doubt.is entertained that impartial justice hos been done by the late board, and that all valid claims'embraced by the treaty have been considered and allowed. , • : This result, and the'final settlement to bo made with this iribc, under the treaty of 1846, which will be completed; and laid before you during the session,, will adjust all questions of controversy between them arid the United States, and produce a state of rola* lions with them simple, well-defined ond satisfactory. Under tho discretionary authority conferred by .the act of the. third of March last, the onnuitics due to the various tribes Have been paid during the. present year, to. the heads, of ..families, instead of to their chiefs, or such persons os they might designate, ns required by tho laws previously existing. This mode of payment has given general satisfaction to tho great body of the Indians, . Justlco lms bcch done to thorn, arid they arc grate* ful to the government for it. A few chiefs and in terested persons may object to this mode of payment; but it is believed to be tho only, mode of preventing fraud and imposition frorri being practised'upon the great body of codimori Indians, constituting a ma jority of all tho tribes. . It, is gratifying to pcrccivo thal a number of the tribes have recently. manifested an increase interest in the cslabUaliment.of schools among them, and are making ropid odvanccsm agriculture—some of them producing insufficient quantity of food for their sup port; end in some'eases a: surplus to dispose of to their neighbors. • The comforts by which those who have received even a very limited education, and have engaged in agricplturc, arc.surrounded, tend gradually to draw off their less civilized brethren. IVom the precarious means of subsistence by the chase; to habits of labor and civilization. ' . The accompanying report of the Secretary of the Navy presents a satisfactory and gratifying account of the condition ahd operations of the. naval service during tho’past year. Our commerce has been pur sued with increased activity, and with safety and success,-in every quarter of the globe under tho pro tection of our flag, which the navy has caused to bo respected.in the most distant seas. In the Gulfof Mexico and in the Pacific, the offi cers and men of our squadrons have displayed dis tinguished gallantry, and performed valuable service. In the early stages of the war with Mexico, her ports on both coasts were blockaded, and more recently many of them have been.captured mulTicld by. the navy. When acting in co-operation with the land forces, the naval officers and men hove performed" gallant rind distlnguishcd.sorvices on land as well ris on water, and deserve the high commendation of the country. r While other maritime powers tire adding to (heir navies large, number of war steamers, it was a wise policy on our part to "make • similar additions to our navy.' The four war steamers, authorized by the act of the third of March, 1847, arc in course of con struction. In addition to the four war steamers authorized by illo act, the Secretary of llio Navy has, .in pursuance of its provisions, entered into contracts for the con* ■(ruction of five steamers, to ,bo employed In the transportation of the United Stales mail “ from New York to New Orleans, touching at Charleston, Sa vanali and Havana, and from Havana id Chogres;” for three steamers to be employed in like ‘manner from Panama to Oregon, “so as to connect; with ,t|io mail frhm Havana to Clmgrcs across the isthmus;-' nhd'for five steamers to bo employed in liko joanner from New York to Liverpool. >. These steamers will be the property of the con tractors, but ore to bo built “under the.superintend ence and direction of a naval constructor in the em ploy oflhe Navy Department, and to be so constructed os to render them convertible at (be least possible expense Into war steamers of the first closs.'* A prescribed number of naval officers, os, wolf as post-office agent, ere to be on board of them } and au thority is reserved to the Navy Department,at oil times control over Baidsleamships," and “to have the right** “ to tnkb them for tho exclusive usb and service of tho United Stales’* “upon itmki’ng proper compensation to the contractors therefor,’* While these steamships will bo employed In trans porting tho mdils of tho United States coastwise, and to foreign countries, upon nn annual compensation id bo paid to tho owners, they will be always ready, up on an emergency requiring it, to bo converted into war steamers j .and the right reserved to take them for public use will add greatly to the efficiency and strength of this description ofottr naval force. .. To the steamers thus outhorized under contracts made by the Secretary of the Navy, should bo added five other steamers authorized under contracts made in pursuance of law by the Postmaster General, ma king an addition. In tho whole, of eighteen war steamers, subject, to bo taken for public use. As further contracts for tho transportion of tho mail In foreign countries may bp authorized by Congress, this , number may bo enlarged Indefinitely, -The enlightened policy by which a rapid commu nication with the various distant parts of the globe is established, by moans of An)cricon-buill. sea steam ers, would find an ample reward in tho increase of our commerce, and in making our country and its resources more favorably known abroad; but the no* lional advantage is still greater, of having our nhvnl officers made familiar, with steam navigation; and of having tho privilege of taking the ships already equipped foe immediate service at a moment’s no tice ; and will bo cheaply purchased by tho, compen sation to bo pofif fof tho transportation of tho mail in them, over and aboVc the postages received, A just national prido, no less than' our commercial interests, .would seem to favor the policy of augmen ting tho numbcrtjf this description ©(‘vessels. They can bo built in our country cheaper and in greater numbers than in any Other in the world, I refer you to tho occnmpnny fug report of (ho Post Master General for n detailed and satisfactory ac count of tho condition and operations of (hat depart* menl during the .past year. It Is gratifying to find that wilMn so short a period after the reduction In tho rates of postage, and notwithstanding tho groat increase of mail semeo, tho revenue received for the year will be Bufficiotfylo defray all (he. expenses, and that no further aid will bo required from the treasury for that purpose. The first of the American mail steamers authorised by the act of 3d of March, 18-15, was completed and entered upon tho service nn the Ist of June Inst, and is now on her third voyage to firemen and other in termediate ports. Tho. other vessels authorised under tho provisions of that act are In course of con struction, and will bo put upon tho lino na soon ns completed. Contracts have also been made for tho transportation of the mail in a stoamerTrodi Charles ton to liavnnah. A rocipcocal nnd satisfactory postal arrangement has been uiado by tho Postmaster General with tho authorities of Bremen; and rioblfficuUy is apprclicn ded in making similar arrangements with all other powers with which wo may have communications by mailsteamers, except with Groat Britain. Onllio arrival of the'first of,tho American stea mers, bound to Brcmon/l Southampton, in the month of. Juno last, the British post office directed' tho collection of discriminating postages on all letters and other mailable matter, which sho took out to Groat Britain, or which went into tho British post office on their way to Pronco and other parts of Europe. * ? ■ Tho effect ofthb order of tho British post offloo is to sullied all loiters and other mailer transported by American steamers to double postage, ano postage having.boon previously paid on them to the United Stoles, while letters tronsmUtod Jn British steamers are subject to pay but a single postage. This, mea sure was adopted with tho avowed object of protect ing tho British line of mail steamers now running between Boston and Liverpool, and,. If permitted to corftinuo, must speedily put an ond to tlio trans portation of all letters and other matter by American j steamers, and to give to British steamers a monopoly , of tho business. A just and fair reciprocity is nit'that-wo dcsiro, end nn lids wo must insist. By onr laws, no such discrimination is made against British steamers bringing letters into bur, ports, but all letters arriving in llio-.U. Stales n£6 -subject to the Bam 0 rn V^ . postage, whether brbtight in-Brilisl, 0 r Am • of vessel*. , 1 reftf.yqhio.ibo report of the p n «i CIIC3n General for a Hill statement of the fuels bf »■ m ° 5 * CT and of the steps, taken by him to comet Uii H }',!! C ' l|!< ! 1 ly. - lie has exerted all .the power conferred him by the existing laws. ‘tyan - .The minister of the United-Slates ol Londn brought the subject, tqvtho' attention of i| )u n** • government, and is now engaged in negotiation! 1 Jbo purpose of .adjusting reciprocal postal nrr« n ° r ments, which shullbo equally just to both count • Should ho fail-in concluding such arrangemcni olnci: 0 lnci : should Great Britain insist on enforcing and unjust measure she has adopted, it wjjj l” c l Ub l necessary 16 confer additional powers on the p™ 0 master General, in order to enable him t 0 m !°? l> emergency, and - to-pul our steamers on an , footing with British steamers engaged in transnoir .tho mail between'tho two countries} and Ire ? mend that such powers bo conferred, CCorn *' ; In view of of our country It it may not be inappropriate, in closing thi/rJ™* 1 nication,'lo cQll to mind the words of wisdom "*1 admonition of the first and most illualrioue ofmv decessors, in his farewell address to his country 9 ’ The greatest and best of, men, who served country so long, and loved it so much foresaw «,■,? “serious concern.” the danger-to' our Union characterizing’, parlies,by geographical discrimin* lions—norlftern and Bouthern t Athintie and toeskrn whence designing men may endeavor to excite belief that iHcro is'a rcaldiffcrcnco of local inlerc i" and views,” and warned his countrymen against h So deep and solemn , was His conviction of (ho I' ’ portanco of the. Union and of preserving |, Qrin m ’ between' its different parts, lh.it ho'dcclarcd country men in that.address, « U is of infinite mome't that ypu should properly .estimate tho immense tain of your, notional Union to your collective and indf vidtinl happiness, that you should cherish'a cordial habitual, and immovable attachment to it • BCCU . ” ming yourselves to, think and to speak of it a . palladium of your political safety and prospcfjJl watching for its preservation with jealous onxietv* discountenancing whatever may suggest even a su picion that It can in any event bo abandoned* and indignantly frowning upon the first dawningoflvcrr attempt to -diencto any portion of onr country from tho; rest, or to. enfeeble tho sacred tics which noir link together.the various parts.” After the lapse of half a century, these ctclmonitions of Washington fall upon us with nil the force of (ruth It is difficult to estimate the “ immense value” of oiirgloriobs Union of confederated States, to which we. arc so much indebted for our growth in jjopuh. lion and wealth, and for nil that constitutes u 8 4 great and a happy nation. , flow unimportant arc all our differenccß of opinion upon minor questions of public policy, compared with Its preservation; and how scrupulously should wo avoid nllngUating topics wh|ch may tend, to dislroct and divide ns into con tending. parties, separated by geographical lines whereby it mny.be weakened or endangered. 1 Invoking, the blessings of llie Almighty Ruler of (ho Universe, upon your deliberations, It will bemr .highest duly, no less.than my sincere pleasure, to co-opcrato with you in all measures which inay lend to promote the honor arid enduring welfare of oar common country. *. JAMKSTIC. POLK, Washington. t)cccmbor, 38d7. Burning of Cue Plinmlx— Ttici his native lam) ami emigrated to America* , I of other nnd equally heart-rending oaacsi * J f whole calamity Is the most, afflicting U\ « . that wo have oyer boon palled upon to rcc° .j’.ipjrr i They had torn Uiemsplvca from the aou r (fl^ ' them birth, nnd bidding adieu l° fl ,e * r , . Itr< *icj i .through toils* hardships and privations, I I forward towards th.o lopd of promise, » sight ofilmt haven of peace dnd rest, ,or w , v • had go long Impcd- und fiifthfully labored, J cll( jcj • overwhelmed in a common destruction, i : theic hopes and their prospecis. M»J° *' j,j ogs 1 Infancy, youth,,exultingmanhood and fee , v jlH' rf • sunk together in a watery grave, Ah • ft £ rUll iolc» » truc,hoartcd,.away in the homes ihpw “. L» iaf( r have loft,.look for- Intelligence of tlioir ir t t vlit» arrlvolin the land whereunip they wc ” ' -yjlieii , hopes that mado-tho heart glad. Then i terrible end may never Mooh that old .no vcr |M i will hearts grow sad, ;oud- tears will, w® f imagined forpelftilness of Ihp lovpd