I'IIESIDUW'S ME3S.MiE. Fellow-citizens if Ike St na!e ami of the Houie of Jleprae/ilatives • I congratulate you and our common con stituency upon the favorable auspices under "which YOU meet for your first session. Our country is at peace with all the world. Ihe agitation which, for a time, threatened to disturb the fraternal relations which makes us one people, is last subsiding: and it year of general prosperity and health has crowned the nation with unusual blessings. None •can look back to the dangers which are passed, or forward to the bright prospect before us, without feeling a thrill ol gratifi cation, at the same time that he must be im pressed with a grateful sense of our profound obligations to a benilicent Providence, whose paternal care is so manifest in the happiness of this highly-favored land. * Since the close of the last Congress, certain Cubans and other foreigners resident in the United States, who were inore or le<s con tented in the previous ima-noii ut l uha, instead of being dis, enraged by its failure, have again abus td the hospitality ul this ecuutrv, of making it the scene of the equip ment of another military expedition against that possession of her Catholic majesty, iti which they were countenanced, aided and joined by citizens of the United States. On i .-eiving intelligence that such designs were . utertaiued, 1 lost no time in issuing such instructions to the proper officers of the 1 ni t a States as seemed to be called for by the oce-u-i 1.1. By the proclamation, a copy of which is herewith submitted, 1 also warned those who might be in danger ot heing in veigled into this scheme of its unlawful char acter, and of the penalties which they would ; licitr. I'or some time there was reason to hope that the- measures bad sufficed to pre vent any such attempt. This hope, however, proved "to be delusive. Very early in the morning of the 3d of August, a steamer • ailed the Pampero departed from New Or leans for Cuba, having on board upwards of four hundre I armed men, with evident inten tion- to make war upon the authorities of the island. This expedition was set on foot in palpable violation of the laws of the I'nited States. Its b a ler was a Spaniard, ami sev eral of tie- chief officers and some others engaged in it, were foreigners. The persons c it. however, were mostly citizens oi the United States. Before the ex [.edition sot out, and probably "before it was organized, a slight insurrec tionary movement, which appears to have been soon suppressed, had taken place in the eastern quarter of Cuba. The importance of this movement was unfortunately so much exaggerated in the accounts of it published in this country, that these adventurers seem to have been led to believe that the Creole population of the island not only desired to throw off the authority of the mother country, but had resolved upon that step, and had begun a well-concerted enterprise for effect ing it. The persons engaged in the expedi tion were generally young and ill-informed. The steamer in which they embarked left New Orleans stealthily and without a clear ance. After touching at Key West, she pro ceeded to the coast of Cuba, and, on the night between the 11th and 12th of August, landed the persons on hoard at I'laytas, within about twenty leagues of Havana. The main body of them proceeded to, and took possession of, an inland village, six leagues distant, leaving others to follow in charge of the baggage, as soon as the means of transportation could he obtained. The latter, having taken up their line of march to connect themselves with the main body, and having proceeded about four leagues into the country, were attacked on the morning of the 13th by a body of Spanish troops, and a bloody conflict ensued: after which they retreated to the place of diseinharcatioc, where about fifty of them obtained boats and re-embarked therein. They were, however, intercepted among the keys near the shore by a Spanish steamer cruising on the coast, captured and carried to Havana, and, after being examined before a military court, were sentenced to bo publicly executed, and the sentence was carried into effect on the 10th of August. On receiving information of what bad oc curred, Commodore Foxhall A. Darker was cinstructed to proceed in the steam frigate Sarauac to Havana, and inquire into the charges against the persons executed, the circumstances under which they were taken, and whatsoever referred to their trial ami sentence. Copies of the instructions from the Department of State to him, and of his letters to that Department, are herewith submitted. According to the record of the examination, the prisoners all admitted the offences charged against them, of being hostile invaders of the island. At the time of their trial and execu tion the main body of the invaders was still in tiie field, making war upon the Spanish authorities and Spanish subjects. After the lapse of sonn* days, being overcome by the Spanish troops, they dispersed on the 24tii f August; L>po;:. their leader, was captured some day ; after, and executed on the Ist of September. Many of bis remaining followers were killed, or died of hunger and fatigue, and the rest were made prisoners. Of these, none appear to have b<-en tried or executed. Several of them were pardoned upon applica tion <>f their friends and others, aud the rest, about one hundred and sixty in number, were sent to Spain. Of the final disposition made of these wo have no official information. Sii'-h is the melancholy result of this illegal ami ill fated expedtion. Thus, thoughtless y-'UUg men have been induced, by false and fraudulent representations, to violate the law oi tlcir country, through rash ami unfounded xpeetatioris of assisting to accomplish politi cal revolutions in other States, arid have; lost their Five: in the undertaking. Too seven; a judgment- can* hardly be passed, by the in dignant sense of the community, upon those who, being be',lor informed themselves, have - ( _'t b'd away the ardor of youth and an ill ■dirceied love of politi.-al lilewtv. The corres pondence b -tweeu this government, and that of Spain relating to this transaction b here with co immi n ie? ted. Although these alien lev- against the laws have "lor (cited the protection of their country, yet the Government may, so far as is consist ent with its obligations to other countries, and its fixed pnrp i.se to maintain and enforce the laws, entertain sympathy for their unof fending families and friends, as well as a feeling of compassion for themselves. Ac cordingly no proper effort has been spared, to procure the release of such citizens of the United States, engaged in this unlawful on t Tpri.-e, as arc now tn confinement in Spain; hut it is to be hoped that such Interposition with the government of that country may not be considered as affording any ground of ex pectation that the Government of the United Siates will, hereafter, feel itself under any obligation of duty to intercede for tlie libera tion or pardon of such persons as are flagrant offender!- against the law of nations and the iaw.-> of the United States. These laws must be executed. If we desire to maintain our ( respectability unioug the nations of the earth, it behoves us to enforce steadily and sternly the neutrality acts passed by Congress, and to follow, as far as may be, the violation of those acts with condign punishment. But what gives a peculiar criminality to this invasion of Cuba is, that under the lead of Spanish subjects and with the aid ut citi zens of the United States, it had its origin, with many, in motives of cupidity. Money was advanced by individuals, probably in considerable amounts, to purchase Cuban bonds, as they have been called, issued by Lopez, sold, doubtless, at a very large dis count, and for the payment of winch the pub lic lands aiul public property of Cuba, of whatever kind, and the fiscal resources of the people and government of that island, from whatever source to be derived, were pledged, as well as the good faith of the government expected to be established. All these means of payment, it is evident, were only to be obtained by a process of bloodshed, war. and revolution. None will deny that those who set on foot military expeditions against foreign States by means like these, are far more cul- , pable than the ignorant and the necessitous whom they induce to go forth as the osten- j sible parties in the proceeding. These origi nators of the invasion of Cuba seem to have determined, with coolness and system, upon j an undertaking which should disgrace their country, violate its laws, and put to hazard the lives of ill-informed and deluded men. j Von will consider whether further legislation he necessary to prevent the perpetration of j such offences in the future. Xu individuals have a right to hazard the peace ot' the country or to violate its laws upon vague notions of altering tir reforming governments in other States. This principle is not only reasonable in itself, and in ac cordance with public law. but is engrafted into the codes of other nations as well as our own. But while such are the sentiments of this Government, it may be added that every independent nation must be presumed to be able to defend its possessions against unau thorized individuals banded together to attack them. The Government of the ITiited States, at all times since its establishment, lias ab stained and sought to restrain the citizens of the country, from entering into controversies between other powers, and to observe all the duties of neutrality. At an early period of the Government, in the administration of Washington, several laws were passed for this purpose. The main provisions of these laws were re-enacted by the act of April 1 18, by which, amongst other things, it was decla red that if any person shall, within the terri tory or jurisdiction of the I'nited .States, be gin, or set on foot, or provide, or prepare the means for any military expedition or enter prise to be carried on from thence against the territory or dominion of any foreign prince or State, or of any colony, district, or people witli whom the I'nited States are at peace, every person so offending shall he deemed guilty of a high misdemeanor, and shall he fined, not exceeding SO ,000, and imprisoned not more than three years; and this law ha been executed and enforced, to the full ex tent of the power of the government, from that day to this. In proclaiming and adhering to the doc trine of neutrality ami non-intervention, the I'nited States have not followed the 1 ad of other civilized nations; they have taken the lead themselves, and have been followed by others. This was admitted by one of the most eminent of modern British statesmen, who said in Parliament, while a minister of the crown, "that if he wished for a guide in a system of neutrality, he should take that laid down by America in the days of \V ash iugton and the Secretaryship of Jefferson;" and we see in fact, that the act of Congress of 1818 was followed, the succeeding year, by an act of the Parliament of England, sub stantially the same in its general provisions. I p to that time there had been no similar law in England, except certain highly penal statutes passed in tiie reign of George 11., prohibiting English subjects from enlisting in foreign service, the avowed objects of which statutes was, that foreign armies, rais ed for the purpose of restoring the house of Stuart to the throne, should not be strength ened by recruits from England herself. All must see that difficulties may arise in carrying the laws referred t<> into execution in a country having 3 or 4,000 miles of sea coast, with an infinite number of ports, har bors and small inlets, from some of which unlawful expeditions may suddenly set forth without the knowledge of Government, against the possessions of foreign states. l-'riendly relations with all, hut entangling alliances with none, has long been a maxim with us. Our true mission is not to propa gate our opinions, or impose upon other conn- ] tries our form of government, by artifice or | force; but to teach by example, and show by our success, moderation and justice, the blessings of self government, and the advan tages of free institutions. Let every people choose for itself, and make and alter its polit- i icul institutions to suit its own condition and convenience. But, while we avow and main tain this neutral policy ourselves, we are anx- j ions to see the same forbearance 011 the part of other nations, whose forms of government arc different from our own. The deep inter- | est which we feel in the spread of liberal principles and the establishment of free gov ernments, and the sympathy with which we witness every struggle against oppression, forbid that we should bo indifferent t<> a case in which the strong arm of a foreign power is invoked to stifle public sentiment and re press the spirit of freedom in anv country. The governments of Great Britain and France have issued orders to their naval commanders on the West India station t<> prevent by force, if necessary, the lauding of . adventurers from any nation on the island of Cuba with hostile intent. The copy of a me- . morandum of a conversation on this subject between the < barge d'Affaires of her Brittan nie Majesty and the Acting Secretary of State and of a subsequent note of the former to the Department of State, an- herewith submitted, together with a copy of a note of the Acting Secretary of State to the Minister of the French Republic, and of the reply of the lat ter on the same subject. These papers will acquaint you with the grounds of this inter position of the two leading commercial pow ers of liiirope, and with the apprehensions, which this Government could not fail to ep tertain, that such interposition, if carried in to effect, might lead to abuses in derogation of the maritime rights of the United States. 1 he maritime rights of the United States arc founded on'a firm, secure, and well-defined basis; they stand upon the ground of Nation al Independence ami public law, and will be maintained in all their just and full extent. The principle which this Government has heretofore solemnly announced it still adheres to, and will maintain under all circumstances and at all hazards. That principle is, that in every regularly documented vessel, the crew who navigate it, and those on board of it. will find their protection iu the flag which ,is over them. No American ship can be ul- lowed to he visited or searched for the pur pose of ascertaining the character of individ uals on hoard, nor can there be allowed any watch by the vessels of any foreign nation over American vessels on the coasts of the United States or the seas adjacent thereto. It will he seen by the last communication from the British Charge d' Affaires to the Department of State, that he is authorized to assure the Secretary of State that every care will be taken that, in executing the preven tive measures against the expeditions, which the United States Government itself has de nounced as not being entitled to the protec tion of any government, no interference shall take place with the lawful commerce of any nation. In addition to the correspondence on this subject, herewith submitted, official informa tion has been received at the Department of State, of assurances by the French Govern ment that, in the orders given to the French naval forces, they were expressly instructed, in any operations they might engage in, to respect the flag of the United States wherever it might appear, and to commit no act of hos tility upon any vessel of armament under its protection. Ministers and consuls of foreign nations are the means and agents of communication between us and those nations, atul it is ol the utmost importance that, while residing in the country, they should feel a perfect security so long as they faithfully discharge their re spective duties and are guilty of no violation of our laws. This is the admitted law of na tions, and no country has a deeper interest in maintaining it than the I nitcd States.— Our commerce spreads over every sea and visits every clime, and our ministers and consuls are appointed to protect the interests of that commerce, as well as to guard the peace of die country and maintain the honor of its Hag. But how can tlicy discharge these duties unless they he themselves protected : and, if protected, it must be by the laws of the country in which they reside. And what is dm* to our own public functionaries resi ding in foreign nations is exactly the measure of what is due to the functionaries of other governments residing here. As in war, the bearers of (lags of truce are sacred, or else wars would he interminable, so in peace, embassadors, public ministers and consuls, charged with friendly national intercourse, arc objects of especial respect and protection, each according to the rights belonging to his rank and station. In view of these impor tant principles, it is with deep mortification and regret 1 announce to you that, during the excitement growing out of the executions at Havana, the office of her Catholic majesty's consul at New Orleans was assailed by a mob, his property destroyeL the Spanish Hag found in the office carried off and torn in pieces, and he himself induced to flee for his personal safety, which he supposed to he in danger. On receiving intelligence of these events, I forthwith directed the attorney of the United States residing at New Orleans to inquire into the facts and the extent of the pecuniar}" loss sustained by the consul, with the intention of laying them before you. that you might make provision for such indemnity tit him as a just regard for the honor of the nation and the respect which is due to a friendly power might, in your judgment, scent to require. The correspondence upon this subject between the Secretary of State and her Catholic majesty's minister plenipoten tiary is herewith transmitted. The occurrence at Xew Orleans has led me to give my attention to the state of our laws in regard to foreign ambassadors, ministers and consuls. 1 think the legislation of the country is deficient in not providing suffici ently either for the protection or the punish ment of consuls. I therefore recommend the subject to the consideration of Congress. Your attention is again invited to the ques tion of reciprocal trade between the United States and Canada and other British posses sions near our frontier. Overtures for a con vention upon this subject have been received from her l'rittannic Majesty's Minister Plen ipotentiary, but it seems to be in many re spects preferable that the matter should be regulated bv reciprocal legislation. 1 docu ments are laid before you showing the terms which the British (lovernnn nt is willing to •tier, and the measures which it may adopt, if some arrangement upon this subject shall not be made. From the accompanying copy of si note from the British Legation at Washington, and the reply of the Department of State thereto, it will appear that her Britannic Majesty's government is desirous that it part of the boundary line between Oregon and the British possessions should l)f authoritatively marked out, and that an intention was ex pressed to apply to Congress for an appro priation to defrav the expense thereof on the part of the United States. Your attention to this subject is accordingly invited, and a proper appropriation recommended. A convention for the adjustment of claims uf < itizen.s of the 4 nited States against Por tugal lias been concluded, and tin: ratifi. a tiuiis have been exchanged. The first instal ment of the amount to be paid by Portugal, fell due 011 the 110 th of September last, and has been paid. The President of the French republic, ac cording to the provisions of the convention, has been selected a- arbiter in the case of the General Armstrong; and has signified that he accepts the trust and the high satisfaction he feels in acting as the common friend of two nations, with which France is united by sen timents of sincere and lasting amity. The Turkish Government has expressed its thanks for the kind reception given to the Sultan's agent, Amin Hey, on the occasion of his recent \i--it to the 1 nited States. <hi the 28th of February last, a despan-h was addres sed by the Seeretary <d' State, to Mr. Marsh, the American Minister at Constantinople, instructing him to ask of the Turkish gov ernment permission for the Hungarians then imprisoned within the dominions of the Sub lime l'orte, to remove to this country. On the P.d of March last both I louses of Congress passed a resolution requesting the President to authorize the employment of a public ves sel to convey to this country Louis Kossuth and his associates in captivity. The instruction above referred to was com plied with, anil the Turkish government hav ing released Governor Kossuth and his com panions from prison, on the lOtli ot September last they embarked on board the Fnited States steam-frigate Mississippi, which was selected to carry into effect the resolution of Congress. Governor Kossuth left the Missis sippi at Gibraltar, for the purpose of making a visit to England, and may shortly be ex pected in New York. By communications to the Department of State lie has expressed his grateful acknowledgements for the inter position of this Government in behalf of him self and his associates. This country has been justly regarded as a safe asylum for those whom political events have exiled from their own homes in Europe; and it is recom mended to Congress to consider in what manner Governor Kossuth and his compan- ions, brought hither by its authority, shall be received and treated. It is earnestly to be hoped that the differ ences which have for some time past been pending between the government oi the French republic and that of the Sandwich Islands, may be peaceably and durably ad justed, so as to secure the independence ol those islands, l.ong before the events which have of late imparted so much importane to the possessions of the United States on the Pacific, we acknowledged the independence of the Hawaiian government. This govern ment was first in taking that step, and seve ral of the leading powers of Europe immedi ately followed. We were influenced in this measure by the existing and prospective im portance of the islands as a place of refuge and refreshment for our vessels engaged in the whale fishery, and by the consideration that they lie in the course of the great trade which must, at no distant day, be carried on between the western coast of North America and Eastern Asia. We were also influenced by a desire that those islands should not pass under the con trol of any other great maritime State, but should remain in an independent condition, and so be accessible and useful to the com merce of all nations. I need not say that the importance of these considerations has been greatly enhanced by the sudden and vast development which the interests of the United States have attained in California and Oregon ; and the policy heretofore adopted in regard to those islands will he steadily pursued. It is gratifying not only to those who con sider the commercial interests of nations, but also to all who favor the progress of knowl edge anil the diffusion of religion, to see a community emerge from a savage state and attain such a degree of civilization in those distant seas. It is much to he deplored that the internal tranquility of the Mexican republic should again he seriously disturbed ; for. since the peace between that republic and the 1 nited States, it had enjoyed such comparative re pose that the most favorable anticipations for the future, might, with a degree of confidence, have been indulged. These, however, have been thwarted by the recent outbreak, in the State of Tatnaulipas, on the right ban!; ol the Rio Bravo. Having received information that persons from the United States had taken part in the insurrection, and apprehending that their example might he followed by others, 1 caused orders to be issued for the purpose of preventing any hostile expeditions against Mexico from being set on foot in violation of the laws of the United States. I likewise issued a proclamation upon the sub ject, a copy of which is herewith laid before you. This appeared to be rendered impera tive by the obligations of treaties and the genera! duties of good neighborhood. In my last annual message I informed Congress that citizens of the United States had undertaken the connexion of the two oceans by means of a railroad across the Isthmus of Ti-hauntepec, under a grant of the Mexican government to a citizen of that republic : and that this enterprise would probably be prosecuted with energy when ever Mexico should consent to such stipula tions with the Government of the United States as should impart a feeling of security to those who should invest their property in the enterprise. A convention between the two governments for the accomplishment of that end has been , ratified by this Government, and only awaits j the decision of Congress and the Executive of ; that republic. Sonic unexpected difficulties and delays j have arisen in the ratification of that conven-1 tion by M cxieo, but it is to be presumed that i iter decision will be governed by just and j enlightened views, as well of the general i importance of the object, as of her own inter- j est- and obligations. In negotiating upon this important subject, this Government has had in view one, and j only one, object. That object has been, and is, the construction or attainment of a pas- i sage from ocean to ocean, the shortest and i the lest for travellers and merchandise, and | equally open to till the world. It lias sought to obtain no territorial acquisition, nor any j advantages peculiar to itself; and it would see, with the greatest regret, that Mexico should oppose any obstacle to the accomplish ment- of att enterprise which promises so much convenience to the whole commercial j world, and such eminent advantages to Mex ico herself. Impressed with these sentiments and these convictions, the Government will ; continue to exert all proper efforts to bring j about the necessary arrangement with the j republic of Mexico for the speedy completion of the work. For some months past the republic of Nic aragua has bee it the theatre of one of those civil convulsions, from which the cause of free institutions, and the general prosperity and social progress of the States of Central America, have >o often and so severely suf fered. Until quiet shall have been restored, and a government apparently stable shall have been organized, no advance can pru dently be made in disposing of the questions pending between the two countries. 1 am happy to announce that an inter-oce anic communication from the mouth of the St. John to the Pacific has been so far accom plished as that passengers have actually traversed it and merchandise has been trans ported over it: and when the canal shall have been completed, according to the original plan, the means of communication will he further improved. It is understood that a considerable part of the railroad across the Isthmus of Panama has been completed, and that the mail and passengers will in future be conveyed thereon. Whichever of the several routes between the two oceans may ultimately prove most eligible for travellers to and from the differ ent States on the Atlantic and Gulf of Mexi co and our coast on the Pacific, there is little reason to doubt that all of them will be use ful to the public, and will liberally reward that individual enterprise, by which alone they have been or are expected to be carried into effect. Peace has been concluded between the contending parties in the island of St. Domin go, and it is hoped upon a durable basis. Such is the extent of our commercial rela tions with that island, that the United States cannot fail to feel a strong interest iu its tranquility. The office of Commissioner to China re mains unfilled ; several persons have been appointed, and has been offered to others, all of whom have declined its acceptance, on the ground of the inadequacy of the compensa tion. The annual allowance by law is $6,000, and there is no provision for any outfit, I earnestly recommend the consideration of this subject to Congress. Our commerce with China is highly important, and is becoming more and more so, in consequence of the in creasing intercourse between our ports on the Pacific coast and Eastern Asia. China is understood to be a country in which living is very expensive, and 1 know of no reason why the American Commissioner sent thither should not be placed, in regard to compen sation, on an equal footing with ministers who represent this country at the courts of 1 Europe. Bv reference to the lleport of the Secretary i of the Treasury, it will be seen that the ag ! yregate receipts for the last fiscal year a -1 mounted to 852,312,9711 88: which, with the i balance in the Treasury on the first of July, 1850, gave, as the available means for the i year, the sum of 858,917, ; >24 36. j " The total expenditures for the same period ' were 848,005,878 08. ! The total imports for the year ending 30th June, j 1851, were " $ >15,725,055 j Of which there were in specie 4,007,1)01 The exports lor the samo period were 821. ,517,1.>0 j Of which there were of domestic products 8178,546,555 Foreign goods re-exported 9,738.695 j Specie 29,231,880 Since the Ist Decomltcr last the payments in cash on account of the public debt, exelu j sive of interest, have amounted to 87,501,- 450 sii; which, however, includes the sum of . 83,242,400 paid under the 12th article of the ' treaty with .Mexico, and the further sum of ; 82,501,213 45, being the amount of awards | to American citizens under the late treaty with Mexico, for which the issue of stock was authorized, hut which was paid in cash from the Treasury. The public debt on the 20th ultimo, exclu sive of the stock to be issued to Texas by the act of Sept., 1850, was 802,500,305 20. The receipts of the next fiscal year are es timated at 851,800,000, which, with the pro bable unappropriated balance in the Treasu ry on the 30th June next, will give as the probable available moans for that year, the sum of 802,258,743 0(1. j It has been deemed proper, in view of the ! large expenditures consequent upon the ae ! quisition of territory from Mexico, that the i estimates for the next fiscal year should bo I laid before Congress in such manner as to ! distinguish the expenditures so required from the otherwise ordinary demands upon tlie Treasury. The total expenditures for the next fiscal year are estimated at 842,802,20(1 10, of which there is required for the ordinary pur poses of the Government, other than those consequent upon the acquisition of our new Territories, and deducting payments on ac count of tite public debt, the sunt of 833,- 343,198 08: and for the purposes connected directly or indirectly with those Territories, and in the fulfilment of the obligations of the Government, contracted in consequence ol their acquisition, the sum of 8(4,649,101 11. It the views of the Secretary of the Treas on- in reference to the expenditures required for these Territories shall be met by corres ponding action on the part of Congress, and appropriations made in accordance therewith, there will be an estimated unappropriated balance in the Treasurp on the 30th June, 1852, of 820,300,444 (to, wherewith to meet that portion of the public debt due on the Ist •July following, amounting to 80,237,931 35, as well as any appropriations which may be made beyond the estimates. In thus referring to the estimated expendi tures on account of our newly acquired Ter ritories, I may express the hope that Congress will concur with me in the desire that a liberal course of policy may be pursued to wards them, and that every obligation, ex press or implied, entered into in consequence of their acquisition, shall be fulfilled by the most liberal appropriations for that purpose. The values of our domestic exports for the last fiscal year, as compared with those of the previous year, exhibit an increase of 848,- 040,322. At first view this condition of our trade with foreign nations would seem to pre sent the most flattering hopes of its future prosperity. An examination of the details of our exports, however, will show that the increased value of our exports for the last lis eal year is to be found in the high price of cotton which prevailed during the first half of that year, which price has since declined about one-half. The value of our exports of breadstuff's and provisions, whirh it was supposed the incen tive of a low tariff* and large importations from abroad would have greatly augmented, has fallen from >08.701,021, in I s 17, to 820,- (151.373 in 1850, ami m 821.948,053 in 1851, witli a strong probability, amounting almost to a certainty, of a still further reduction in the current year. The aggregate values of rice exported du ring the last fiscal year, as compared with the previous year, also exhibit a decrease amount ing to 8400,917, which, with a decline in the values of the exports of tobacco for the same period, make an aggregate decrease in these two articles of 81.150,751. The policy which dictated a low rate of du ties on foreign merchandise, it was thought by those who promoted and established it, j would tend to benefit the farming population j of this country, by increasing the demand j and raising the price of agricultural products j in foreign markets. The foreogoing facts, however, seem to show I incontestibly that no such result has followed the adoption of this policy, t>n the contrary, notwithstanding the repeal of the restrictive corn laws in England, the foreign demand for the products of the American farmer has steadily declined, since the short crops and consequent famine in a portion of Europe have been happily replaced by full crops and comparative abundance of food. it will be seen, by referring to the com mercial statistics for the past year, that the value of our domestic exports has been in- • creased in the single item of raw cotton by j 84(MlOO,0tM> over the value of that export for j the year preceding. This is not due to auv . increased general demand for that article, but to the short crop of the preceding year, which created an increased demand and an augmented price for the crop of last year.— Should the cotton crop now going forward to market be only equal in quantity to that of the year preceding, and be sold at the pres ent prices, then there would be a falling oft' in the value of our exports for the present fiscal year of at least *40,000,000, compared with the amount exported for the year ending 30th June. 1851. The production of gold in California for the past year seems to promise a large supply ol that metal from that quarter for some time This large annual increase of the currency of the currency of the world must he attend ed with its usual results. These have been already partially disclosed in the enhance ment of prices and a rising spirit of speeula | tion and adventure, tending to overtrading, as well at home as abroad. Unless some salutary check shall be given to these tenden cies, it is to be feared that importations of foreign goods beyond a healthy demand in this country will lead to a sudden drain of the precious metals from us, bringing with it. as it lias done in former times, the tuns disas trous consequences to the business and capi tal of the American people. • The exports of specie to liquidate our for eign debt during the past fiscal year have I been 821,203,979 over the amount of specie | imported. The export f -j • i>.- during t. .. i first quarter of the present fiscal year ha\,. been £14.051,*-". Should specie continue t be exported at this rate for the remain" thi • quarters of this year, it will drain from our metallic currency during the year ending 30th June, 1852, the enormous amount of SSB,G( 17.30*. In the present prosperous condition of the I national finances, it will become the duty of ! Congress to consider the best mode of I off the public debt. If the present and an tieipated surplus in the Treasury should nut he absorbed by appropriations of an extraor dinary character, this surplus should he em ployed in such way, or under such restric i tious, as Congress may enact, in cxtinuish | ing the outstanding debt of the nation.' By reference to the act (if Congress appro j ved 9th Sept., 1850, it will be seen that, in | consideration of certain concessions bv the ! State of Texas, it is provided that the "Uni : ted States shall pay to the State of Texas the i <um of ten millions of dollars, in a stock hearing 5 per cent, interest, and redeemable at the end of fourteen years, the interest par able half yearly, at the Treasury of the I'm ted States." In the same section of the law it is fur ther provided "that no more than five millions ot said stock shall he issued until the credi tors of the State holding bonds and other cer tificates of stock of Texas, for which duties on imports were specially pledged, shall first file at the Treasury of the United States re leases of all claims against the United States, fur or on account of said bonds or certificates in such form as shall be prescribed bv the Secretary of the Treasury, and approved by j the President of the United States." J lie form of release thus provided fur hns been prescribed by the Secretary of the Trea sury, and approved. It has been published in all the leading newspapers in the comaier j eial cities of the United States, and all per sons holding claims of the kind specified in the foregoing proviso were required to file their releases (in the form thus prescribed)in the Treasury of the United States, on or be fore the l<t day of October, 1851. Although this publication has been continued from the 25th day of March, 1851, yet up to the lstot j October last comparatively few releases had I been filed by the creditors of Texas. The authorities of the State of Texas at i the request of the Secretary of the Treasury, have furnished a schedule of the public debt 1 of that State created prior to her admission into the I nion, with a copy of the laws un der which each class was contracted. i have, from the documents furnished bv the State of Texas, determined the classes of claims which in my judgment fall within the provisions of the act of Congress of the 'Jth of September. 1850. Ou being officially informed of the accept ance by Texas of the propositions contained in the act referred to, I caused the stock to be prepared, and the five millions which are to be issued unconditionally, bearing an in terest of five per cent, from the Ist day of Jauary, 1851, have been for some tiipe ready to be delivered to the State of Texas. The authorities of Texas, up to the present time, have not authorized any one to receive this stock, and it remains in the Treasury De partment, subject to the order of Texas" The releases, required by law to be deposi ted in the Treasury, not having been filed there, the remaing five millions have not been issued. This last amount of the stock will he withheld from Texas until the condi tions upon which it is to be delivered shall he complied with by the creditors of that State, unless Congress shall otherwise direct by a modification of the law. In my last annual message, to which I res pectfully refer, 1 stated briefly the reasons which induced me to recommend a modifica tion of the present tariff' by converting the ad valorem into a specific duty, wherever the article imported was of such a character as to permit it. and that such a discrimination should he made, in favor of the industrial pursuits of our own country, as to encourage home production without excluding foreign competition. The numerous frauds which continue to lie practised upon the revenue, by false invoices and under valuations, constitute an unan swerable reason for adopting specific instead of ad valorem duties in all cases where the nature of the commodity does not forbid it. A striking illustration of these frauds will be exhibited in the Report of the Secretary of the Treasury, showing the custon house valuations of articles imported under a for mer law subject to specific duties, when there was no inducement to undervaluation, and the custom-house valuations of the same ar ticles, under the present system of ad valo rem duties, so greatly reduced as to leave no doubt of the existence of the most flagrant abuses under the existing laws. This prac tical evasion of the present law, combined with the languishing condition of some of the great interests of the country, caused by over importations and consequent depressed prices, and with the failure in obtaining a foreign market for our increasing surplus of bread stuffs and provisions, has induced me again to recommend a modification of the existing tariff. The report of the Secretary of the interior, which accompanies this communication, will present a con densed statement of the operations of that import ant department of the Government. It will be seen that the cash sales of the public lands exceed those of the preceding year, and lhat there is reason to anticipate a still further increase, notwithstanding the large donations which have been made to many of the States, and the liberal grants to individuals as a reward for military servi ces. This fact furnishes very gratifying evidence oU the growing wealth and prosperity ot our country. Suitable measures have been adopted for commen cing the survey of the public lands m California and Oregon. Surveying parties have been organized, and some progress has been made in establishing the principal base and meredian lines. But further le gislation and additional appropriations will be neces sary before the proper subdivisions can be made and the general land system extended over those remote . parts of our territory . On the 3d of March last an act was passed provi i ding for the appointment of three commissioners tu j settle private land claims in California. Three per sons were immediately appointed, all of whom, how - I ever, declined accepting the office, in consequence j of the inadequacy of the compensation. Others were ! promptly selected, who for the same reason, also ; declined; and ii was not until late in the season that | the services of suitable persons could he secured, j A. majority of the commissioners convened, in this ; city, on the 10th of September last, when detailed : instructions were given to them in regard to their | duties. Their first meeting for the transaction of business will be held in Ban Francisco on the Bth of j the present month. I have thought proper to refer i to these facts, not only to explain the causes of the | delay in filling the commission, but to call your at tention to the propriety of increasing the compensa tion of the commissioners. The office is one of , great labor and responsibility, and the compensation should he such as to command men of a high order of talents and the most unquestionable, integrity. The proper disposal of the mineral lands olCnli ; forma is a subject surrounded by great difficulties. In mv last annual message I recommended the sur vey and sale of thorn in small parcels, under such restrictions as would effectually guard against mo [ nopoly and speculation. But upon further 1 n forma- I tion. and in deference to the opinions of persons fa miliar with ihe subject, 1 am imbued to change that I recommendation, and to advise lhat they to permit ; ted to remain, as at present, a common field, open I to the enterprise and industry of all our ut :cns, utt-
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