seven years had elapsed since Texas had etsablish. 7.a her independence , a treaty was concluded for the aa `" a oationif that republic to the United States, which was rejected by the Senate. Finally, on the arat or March, 1845, Congress passeda joint resolu ”a" F oe a nnexing her to the United States, upon retina preliminary conditions to which her assent T o miltured. The solemnities which characteriz edthe deliberations and conduct of the government an d people of Texas, on the deeply interesting quest mas presented by these re.soluttons, are known. to the world T h e c o ngress the Executives and the people Vos, in a convention elected for that purpose:, ac eepted with great unanimity the proposed terms of = wallop ; and thus consummated on her part the', try tof restoring to our federal Union a vast r arr i tn which had been ceded to Spain by the Flor ida treaty more than a quarter of a century be fore.• After the joint resolution for the annexation of Tens to the United States had been passed by 'our ogr ess, the Mexican Minister at Washington ad dressed a note to the Elecetary of State, bearing date aa the s ixth of March, /8.1 5 , protesting against it aa as ant of aggresssion, the most unjust which can be found recorded in the annals of modern history, sir. that of despoiling a friendly nation, like Mexi co, of a considerable portion of her territory ;" and protesting against the resolution of annexation as Wog an act " whereby the province of Texas, an i nte gral portion of the Mexican territory, is agreed sad admitted into the American Union ;" and he ann ounced that, as a consequence, his mission to the u nt i e d States had termined. and demanded his pass p o rts; which ware granted. It was upon the absurd pretext. made by Mexico, (herself indebted for her independence to a success ful r eeplution,) that the republic of Texas still con tained to be: notwithstanding all that had passed, a province of Mexico ; that this step was taken by the Mexican minister. Every honorable effort has been used by me to avoid the war which followed, but all have proved vain. All our attempts to preserve peace have been rag by insult and resistance on the part of Mexico. Mc efforts to this end commen ced in the tenth of slarch, 1845, in answer to that of the Mexican ruinisler. Whilst declining to reopen a disscussion which bad already been exhausted, and proving again what was known to the whole world, that Texas bad long since achieved her independence, the Secre tary of State expressed the regret of this govern ment that Mexico should have taken offence at the resolution of annexation passed by Congress, and gave assurance that our " most strenuous efforts chat be devoted to the amicable adjustment of eve ry cause of complaint between the sister republics." That I have acted in the spirit of this assurance, will appear from - the events which have since oc curred. Notwithstanding Mexico had abruptly ter minated all diplomatic intercourse with the United States, and ought, therefore, to ask for its resump bon, yet, waiving all ceremony, I embraced the earliest favorable opportu city "to ascertain from the Mexican government whether they would re ceive an envoy from the United States instructed with full power to adjust all the questions in dispute between the two governments." In September, lS4t, I believed a propitious moment for such an overture had arrived. Texas, by the enthusiastic and almost unanimous will of her people, had pro- iounced in favor of annexation. Mexico herself had agreed to acknowledge the in 'epeudance of Texas subject to a condition, it is rne,,winch she had right to impose and no power . _ enforce. _ The last lingering hope of Mexico, if could have retained any, that Texas would ever again become, one of her provinces, must have . teen abanoned. The consul of the United States at the city of Mexico, was, therefore, instructed by the Secretary e,f State on the fifteenth of September, 1845, to make the Inquiry of the Mexican government. The inquiry was made, and on the fifteenth of October, 1845, the Minister of Foreign Affairs of the Meuran government, in a note addressed to our ram!, gave a favorable response, requesting, at the !sine cone, that our naval forces might be with qawn from Vera Cruz while negotiations should be pending. Upon the receipt of this note, our na val fume was promptly withdrawn from Vera Cruz. A minister was immediately appointed, and de puted to Mexico. Every thing bore a promising ;ipect for a speedy and peaceful adjustment of all nor difficulties. At the date of my annual message to Congress, in December last, PO doubt was entertained but that bewould.be received by the Mexican government, and the hope was cherished that all cause of mis understanding between the two countries would be ipeedily removed. In the confident hope that such would be the result of his mission, I informed Con- Eress that I forebore at that time to “ recommened such ulterior measures of redress for the wrongs and injuries we had so long borne, as it would have been proper to make had no such negotiation been instituted." To my surprise and regret, the llenean government though soleinnly pledged to do , 0, upon the arrival of our Minister in Maxim, re 9,ted to receive and accredit him. When he reached Vera Cruz, on the thirtieth of November, 1845, he found that the aspect of affairs had undergone an unhappy change. The govern nett of Gen. Herrera, who was at that time Presi dent of the republic, was tottering to its fall. Gen. Paredes (a military leader) had manifested his de. Irrminatton to overthrow the government of Herrera, nr mi:i:ary revolution : and one of the principal mass which he employed to effect - his purpose,. render the government of Herrera odious to the army and people of Mexico, was by loudly con demning its determination to receive a minister of rare from the United States, to dismember the ter ' tom of Mexico, by ceding away the department of Texas. The government of Herrera is believed to have well disposed to a pacific adjustment of ex ults; difficulties ; but alarmed for its own security, wad in order to ward off the danger of the revolat m led by Paredes, violated its own solemn agree elm, and refused to receive or accredit our min mer; and this, although informed that he bad been invested with full power to adjust all questions in dispute between the two governments. A innng the frivolous pretexts lor:this refusal, the rine:pal one was, that our minister had not gone Wes a special mission, confined to the question of Tens alone, leaving all the outrages upon our flag and CAIT citizens unredressea. The, Mexican government well kenw ' that both ant national honor and the protection due to our cozens imperatively required that the two-questions o Chonndary and indemnity should be treated of keener, as naturally and inseparably blended, and keener, ought to have seen that this course was best calculated to enable the U. States to extend to them ' l '.'lnno liberal justice. On the 30th of Dec., 18 15 . i-; •lierrera resigned the presidency, and yielded t . P.the government to General Paredes without a L mßic Thus a revolution was accomplished " ' % lely by the army commanded by Paredes, and the Reran power in Mexico passed into the bands if Itiltaty usurper ute , who was known to be bitterly In the United States. AW N , °el the prospect of a pacific adjustment , a 'Lb thie oew government was unpromisingfrona , ra hostility of its head to the United States,yet d etermined that nothing should be left undone 013 as Pan to restore friendly relations between the , t rhlries, our minister was instructed to pre= his credentials to the new government, and ask accredited by it in the diplomatic charac -7.2lthich he had been commissioned. These in • e'ss be executed by his note of the first of „7,1848, addressed to the Mexican Minister of i rwi r t f i s Alfaus, but his request was insultingly re ittmk,„.7 that minister on the twelfth of the same 55 Soalternative remained but for our minis itatateZand his passports, and return to the Uni- Thu s - t ate ei l ra; the extraordioary spectacle presented arm Civi l ized world of a government, in violation a iztste 4 r "ress agrement, having twice rejected. Miu st ~.° C Peace, invested with full powers to • toza me existing differences between the two 11:11.140est aware anner just and honorable to both. —.e.that modern history presents a pa' in which, in time of peace, one Ration ro t Z e d m .c.vee lo hear propositions another. sk arcei mall existing difficultierbetween them. 'late nt° , ,hone of adjusting our difficnilties. even ta, cow , te or of preserving peace with Meat ae ke,:d"oher the while Paredes remained at aip„,ttie government. Re bad acquired the e' sol "c enia r h YLmilitary revolution; and unit pledges to wage war igainst United States; and to reconquer • Texas; which he claimed as a revolted province of Mexico: lie had denounced as guilty of treason all those Mexicans ,who considered Texas as no longer a part of the territory -of Mexieo,'aidosho *ere friendly, to the cause of peace.. The duration of the war whiclile waged.against the Ui States was idefinite, because: the object which he proposed, of the reconquest of Texas, was hopeless. Besides, there was good rea son to believe, from all his conduct, that it was his intention to convert the republic of Mexico into a mo narchy, and to call a foreign European prince to the throne. Preparatory to this end, be bad, during his short rale, destroyed the liberty of the press, tolera tiug'that portion' of it • which openly advocated the establishment of a monarchy: The better to secure the success his ultimate designs; he had by an arbi trary decree, convoked a Congress—not to be elect.; ed by the free voice of the people; but to be chosen I in a manner to make them subservient to his will, and to give him absolute control over their delibe rations. Under all these circumstances, it was believed that any revolution in Mexico, founded upon oppo.; sition to the ambitious projects of Parades, would tend to promote the causeof- peace as well as pre vent any attempted European interference in the af fairs of the North American continent—both objects of 'deep interest to the United States. Any such foreign interference; if attempted, must have been resisted by the-United States. My Views upon that subject were fully communicated to Congress in my last annual message. In any event, it was certain that no change whatever in the government of Mexi co which would deprive Paredes of power could be for the worse, so far as , the United States were con cerned, while it was highly probable that any change' most be for the better. This was the state of affairs existing when Con gress, on the thirteenth of May last, recognised the existence of a war which had been ontomenced by the Governthent of Paredes; and it became an ob- ject of much importance, with a view to a speedy settlement of our difficulties and the restoration of an honorable peace, that Paredes should not retain power in Mexico. Before that time there were symptoms of a revo lution in Mexico, favored, as it was understood to be, by the more liberal party, and especially' by those who were opp)sed to foreign interference and to the monarchial form of government. Santa An- na was then in exile in Davana, having been ex pelled from power and banished from his country by a revolution which occured in December, 1844; but it was known that he had still a considerable party in his favor in Mexico. It was also equally well known that no vigilance which could be exert ed by our squadron, would in all probability, have prevented him from effecting a landing somewhere on the extensive gulf coast of Mexico, if he desired to return to his country. He had openly professed an entire change of policy; had expressed his re- gret that he had subverted the federal constitution of 1824, and avowed that he was now in favor of its restoration. He had pnblicly declared his hos tility, in the strongest terms, to the establishment of a monarchy; and to European interference in the af fairs of his country. Information to this effect had been received, from sources believed to be reliable, at the date of the recognition of the existence of the war by Congress, and was afterwards fully confirm- ed by the receipt of the despatch of our consul in the city of Mexico. with the accompanying docu ments, which are herewith transmitted. Besides, it was reasonable to suppose that he must see the ru inous consequences to Mexico of a war with the U. States, and that it would be his interest to favor peace. It was under these circumstances and upon these considerations that it was deemed expedient not to obstruct his return to Mexico, should he attempt to du so. Our object was the restoration of peace;— end with that view, no reason was perceived why we should take part with Paredes, and aid him, by means of our blockade, in preventing the return of his old rival to Mexico. On the contrary, it was be lieved that the intestine divisions which ordinary sagacity could nut but anticipate as the fruit of San ta Anna's return to Mexico, and his contest with Paredes, might strongly tend to produce a disposi tion with both parties to restore and preserve peace with the United States. Paredes was a soldier by profession, and a monarchist in principle. He had but recently before been successful in a military re volution, by which be had obtained power. He was the sworn enemy of the United States, with which he bad involved his country in the existing war. Santa Anna •had been expelled from power by the army, was known to be in open hostility to Paredes, and publicly pledged against foreign inter vention and the restoration of monarchy in Mexico. In view of these facts and circumstances it was, that, when orders were issued to the commander of our naval forces in the Gulf, on the Ilth day of May last, the day on which the existence of the war was recognised by Congress, to place the coast of Mexi co under blockade, he was directed not to obstruct the passage of Santa-Anna to Mexico, should be attempt to return. ' A revolution took place in Mexico in the early part of August following, by which the power of Paredes was overthrown, and he has since been expelled, from the country, and is now in exile. Shortly af terwards, Santa Anna returned. It remains to be seen whether his return may not prove to be favo rable to a pacific adjustment of the existing difficul ties, it being manifestly his interest not to persevere in the prosecution of a war commenced by Paredes, to accomplish a purpose so absurd as the reconquest of Texas to the Sabine. Had Paredes remained in power, it is morally certain that any pacific adjust ment would have been hopeless. Upon the commencement of the hostilities by Mexico against the United States, the indignant spi rit of the nation was at once aroused. Congress promptly responded to the eipectations of thc coon try, and, by the act of the thirteenth of May last, re cognised the fact that war existed, by the act of Mexico, between the United States and that repub lic, and granted the means necessary for its rigo rous prosecution. Being involved in a war thus' commenced by Mexico, and for the justice of which on our part we may confidently appeal to the whole world, I resolved to prosecute it with the utmost' vigor. Accordingly, the ports of Mexico on the Gulf and on the Pacific have been' placed under blockade, and her territory invaded at several int- portant•points. The reports from the departments of War and the Navy will inform you more in detail of the measure adopted in the emergency in which our country "as placed, and of the gratifying re-. sults which have been accomplished. . - The various columns of the army have perform ed their duty under great disadvantages, with the ' most distinguished skill anti courage. The view ries of Palo Alto, and Resaca de la Palma, and pi( Monterey, won against greatly superior numbers, and against most decided advatnages in other re spects on' the part of the enemy, were brilliant in their 'execution, and entitle our' brave officers and, soldiers to the grateful thanks of their coentry.— The nation depleres the loss of the brave officers and then who have gallantly fallen while vindica. ting and defending theircoontry's rights and honor. It is a subject of pride and satisfaction that our volunteer citizen-soldiers, who so promptly respon ded to their country's call, with an experience of the discipline of the camp of "only a few weeks, have borne their part in the - bard fought battle of Monterey with a constancy and courage equal to that of veteran troops, and . worthy of the highest admiration.' The privations of long marches thro' the enemy's country, and through a wilderness have been borne without a Murmur. By rapid move ments the province of New Mexico, with Santa Pe. its capital,has been captured without bloodshed. The navy has co-operated with the army, and rendered 'important services; if not so brilliant, it is because they had no force to meet them on their own ele ment, and because of the defences which nature has interposed in the difficulties of tho navigation on the Mexican coast. Our squadron on the Pacific, with : the co-operatioa of a gallant officer of the army, and a small force hastily collected in, that distant coon try, have acquired bloodless posiession of the C.alDi fornias, and the American Bag has -been raised at every impOrtint point in that. province- • • I congratulate you on the success which has thus attended our -military- and naval operations. lit less than seven months titer Mexico commenced hostilities, at a time selected by, herself, we have taken possession .of many of her principal ports. driven back - and_ pursued ber invading army, and acquired military possession of the Mexican pro vinces of New Mexico, New Leon. Coahuila,Tii matilipus, and the California, a territory larger in extent than that . embraced in the original-thirteen States of the Union, inhabited by a considerable population, and much of it more than a thousand miles from the points at ' , which we had to collect our forces and commence'our movements. 13f the bloCkade, the import and export trade of the enemy. has been int off: • - .'• ' Well may lie American peoplebe proud of :the energy and gallantry tif our regular' and volunteer officers and sofdiert. The events of these few months afford a gratifying proof that our country can, adder any emergency, confidently rely for the maintenance of ber-honor, and the defence of her. rights, on an effective force, ready at all Mmes vol untarily to relinquish the comforts of home for the perils of the camp- - vtn4 though such a force may be for the time expensive, it is in the end economi cal, as the.ability to-command it removes the ne cessity of employing a large standing army in time of peace, and proves that our people love their in -ititntions, and are ever ready to defend and protect them Whilst war was in a coarse of vigorous and suc cessful prosecution, being still anxious to arrest its evils, and considering that, after the brilliant victo ries of onr arms on the eight and ninth of Mayfast, the national honor could not be coroprom iced by it, another overture was made to Mexico, by my di rection, on the twenty' seventh of July last, to ter initiate hostilities by. a peace just and honorable to both countries. On the 31st of August following, the Mexican government declined to accept this friendly overture, but referred .it io the decision ol a Mexican Congress, to be assembled in the earl f part of the present month.• I communicate to you, herewith, a copy of Aherletter of the Secretary of State proposing to reopen negotiations, of the an swer of the Mexican government, and of the reply thereto of the Secretary of State. . The war will continue to be prosecuted with. vigor as the means of securing peace. It is hoped that the decision of the Mexican Congress, to which our last overture has been referred, may result in a speedy and honorable peace. With oprexperience, however,nt the unreasonable courte of the Mexican authorities, it is the part of wisdom not to relax in the energy of our military operations until the re- In this view, it is deemed Am- suit is made known portant to bold military possession of all the pro- vinces which have been taken, until a definitive treaty of peace shall have been concluded and rati- Led by the two countries. The war has not been waged with a view to con quest ; but having been commenced by Mexico, it has been carried into the enemy's country, and will be vigorously prosecuted there; with a view to ob tain an honorable peace, and thereby secure ample indemnity for the expenses of the war, as well as to our much ipjured citizens, who hold large pecuniary demands aga inst Mexico. By the laws of nations a conquered territory is subject to be governed by the conqueror during his military possession, and until there is either a trea ty of peace; or be shall voluntarily withdraw from it. The old civil government being necessarily an• perseded, it is thenright and duty of the conqueror to secure his conquest,and to provide for the main tenance of civil order and the rights of the inhabi tants. This right has been exercised, and this duty performed, by our military and naval commanders, by the establishment of temporary governments in some of the conquered provinces in Mexico, asmi lating them as far as practicable to the free institu tions of our own country. In the provinces ofNew Mexico, and of the Caitfornias, little if any further I resistance is apprehended from the inhabitants to the temporary governments which have thus, from the necessity of the oase,and according to the laws of war, been establisited. It may be proper to pro vide for the security ofthese important conquests by making an adequate appropriation for the pur pose of erecting fortifications and defraying the ex penses necessarily incident to the maintenance of our possession and authority over them. Near the close of oar last session, for reasons communicated to Congress, I deemed it important, as a measure seen - ring a speedy peace with Mexico, that a sum of money should be appropriated and placed in the power of the Executive, similar to that which had been made upon two former occasions, daring the administration of President Jefferson. On the 20th of February, 1803, an appropriation of $2,000,0(0 was made, and placed at the disposal of the President. Its object is well known. It was at that time in contemplation to acquire Louisiana from France, and it was intended to be applied as a part of the consideration 'which might be paid for that territory. On the 13th of February, 1806, the same sum was in like manner appropriated, with a view to the purchase of the Floridas from Spain.— These appropriations were made to facilitate ne gotiations, and as a means to enable the President to accomplish the important objects in view.— Though it-did not become necessary for the Presi dent to use these appropriations,yet a state of things might have arisen in which it would have been highly important for him to do so, and the wisdom of making them cannot be doubted. It is believed that the measure recommended at your last session met with the approbation of decided majorities in both houses of Congress. Indeed, in different forms, a bill making an approbation of $2,000,001 passed each house, and it is much to be regretted that it did not become a law. The reasons Which induced me to recommend the measure at that time, still exist; and I again submit the subject for your con sideration, and suggest the importance of early ac-, tion upon it. Should the appropriation be made, and be Just needed, it will remain in the treasury: should it-be deemed proper to apply it in whole or in part, it will be accounted for as other public ex penditures. Immediately after Congress had recognised the existence of the war with Mexico, my attention was directed to the danger that privateers might be fitted out in the ports of Cuba and Porto Rico to prey up on the commerce of the Ilnitid States; and I invi ted the special attention of the Spanish government tcrthe 14th article of our treaty with that power of the 20th of October, -1795, - under which the citizens and subjects of either nation who shall take com missions or letters of .marque to act as privateers against the other, “shall be punished as pirates." It affords me pleasure to inform you that I have received assurances from the Spanish government that this article of the treaty shalt be faithfully ob served on its part. Orders for this purpose were immediately transmitted from that government to the authorities of Cuba and Porto Rico to exert' their utmost vigilance in preventing any attempts to fit out privateers in those islands against the United States. From the good faith of Spain lam fully satisfied that this treaty will be executed in its spirit as well as its letter; whilst the United States will, on their part, faithfully perform a7l the obliga tions which it imposes on them. Information has been recently received at the Department of State that the Mexican government has sent to Havana blank commissions to privateers. and blank certificates of naturalization, • signed by General Silas, the present head of the Mexican go vernment. There is, also, reason to apprehend that similar documents have been transmitted to other parts of the world. Copies of these papers, in trans lation, are herewith transmitted. . As the preliminaries required by the practice of civilized nations for commissioning privateers and, regulating their conduct appear not to have been observed, and as these commissions are in, blank, to be filled up with the names of citizens and sub-1 jets of all nations who may be ' to purchase them, the whole proceeding can only be construed as an invitation to all the freebooters upon earth, who are willing to pay for the- privilege to cruise against American commerce. It will be for our mutts of justice to decide whether, under such Mr cumstances, these Mexican letters of marque and reprisal shat protect those who accept them, and commit robberies upon the high seas under. their authority, from the pains and penalties of piracy. If the certificates of naturalization thus , granted, be intended by Mexico to shield Spanish subjects from the guilt and punishment of piratesoinder our treaty with qpain, they will certainly prove unavail ing. Such a subterfuge would be but a Weak de-, vice to defeat the provisions ofa solemn treaty., . 1.1 - momo:tend that Congress should immediately, provide by law for the trial-and punishment as'pi ratesof Spanish subjects, who, escaping the, vigi lance of their government, shall be found, guilty of priv,sueering against the United States. I do not. apprehend actions' danger [rem these, privateers.-- Our navy will be constantyon.the alert to protect our commerce. Besides, is case prize:l - should be made of American vessels; the Utmost, vigilance will beexerted by our blockading squadron to' pre vent the captors , from taking ihem into. Mexican ports, and it is not apprehended that any nation will, violate its neutrality by suffering inch prizes to be Condemned and sold within its jurisdiction. . I recommend that Contras should immedialelY provide by law for'grnating letters if Marque and reprisal against vessels under the Mexican Asp_ It . 15%1rue - that there are lint few, „if toy; emintercial 'vessels of litexicii 'upon ,the high seis;' - iind it is' therefore not probable' that' Many American pries teen would be Ailed out, in case a lieshould Oise authorizing this mode of warfare: It is; notwilh standing,:cermia 'that such privateers may render good seriice tq the commercial interests' of the country, by recapturing our merchant ships, should any be taken by armed vessels under the Merl can flag, art well as by capturing these vessels themselves: Every means within our power should be rendered available for the protection of oar commerce. - The IMMO rapid of the Beeritity'of the Treasary wilt iihibit a detaikd inideasent Of the, condition of the fiiiiieee. The impede for the llisealyear ending on the 30th of lone list, were of the value of $121,691,7971 of which the amount expoTtei was $11,346123; leas. log the anusant retained in tb"e - country for domestic consumption $110,345;114. - The value of the exports for the same period wee $113,486,516; Of *bleb $102,- 141,693 masted of dometstie prahmtions, anti $11,31100 823 of foreign articles. ' • - the receipts into the treasury for the awe year were $29,499,247.08; of which them was desivesi from ems. Vials $28,712,687 'B7 ;• from sales of public lands. $7,• 694,452 48; land from incidental and miscelhmenue sources, $92 126 71 ;. en 3 the bAstree in the treasury on the, first day of July last wes $9,126,439 08; The amount of the public debt, including treasury notes, on the first of the present month, was $24,258,- 494 60; of which the sum or $17,788,799 62 eras out standing on the fourth of March, 1845, leaving the ern mutt incurred since that time'56,467,694 98. In:order to proasente the war with Mexico with vigor, end enenil. Al the beat means of bringing it to sapeedy and honorable termination; a further loan will be neea• awry to meet .the expenditures for the present and the next final yeses. If the war should be continued until the 00th of Juue, 1848—being the end of the neat fiscal year—ii is estimated 'halite additional loan of 823,000,- 000 will. be required. This estimate is mule upon the assumption that it will he necesstuy to retain constantly in the treasury four millions of dollars to guard against contingencies. If such surplus were not required to be retained, then a loan of nineteen millions of dollars would be sufficient. If, however, Congress should, at the present session, impose a revenue duty on the prin cipal articles now end:sand in the free list, it is estima ted that an additional revenue of shoot two millions and half, amounting. it is estimated, on the 00th of June, 1848, to four millions of dollar*, would be derived from that source, and the loan required would be reduced by that amount. It is estimated also, that should Congress graduate and reduce the price of such of the public lands as base been long .. in the market, the additional revenue derived frau:l'lbn source amid be annually, for seam! years to come;between half a million and • million or dollars; and the loan required may be reduced by that amount also. Should these measures be adopted, the loan required would not probably exceed eighteen or nine teen millions of dollars—leaving in the treasury a con stant surplus of four millions of dollars. The loan pro- posed, it is estimated, will be sufficient to cover the no. cessary expenditures both fur the war and all other par poses. up to the 30th of June, 1848 ; and an amount of this loan, not exceeding one-ball. may be required dur. in: the present Steal year, and the greater part of the remainder during the first half of the fiscal year succeed- i ng. In or4erkhat timely notice may he given, end proper rneasurea taken to effect the loan, or such portion of it as may be required. it is important that the authority of Congress to make it, be given at an early period :f your present session. ft in suggested that the loan -be contracted fin a period of twenty years, with authority to purthase the stock and pay it off, at an earlier period, at its market value, out of any surplus which may at any time be in the treasury applicable to that purpose. After the establishment of peace with Mesita, it is supposed that a considerable surplus will exist, and that the debt may be extinguished in a much shorter period than that for which it may be contracted. The period of twenty years. as that for which the proposed loan may be con tracted, in preference to a shorter period, is suggested, because all experience, both at home and abroad, has shown that loans are effected upon much beuer terms upon long time,than when they are reimbursable at short dates. Necessary as this measure is to sustain the honor and the interests of the country, engaged in a foreign war, it is not doubted but that Congress will promptly authorize it: The balance in the treasury on the first of July last, tee:soled nine millions of dollars, notwithstanding con siderable expenditures bad been made for the war during the.months of May and June preceding. But for the war, the whole public debt could and would have been extinguished within a abort period ; and it was a part of my settled policy to do a, and thus relieve the people from its burden, and place the government in' a positron which would enable it to reduce the public expenditure to that economical standard which is most consistent with the general welfare, and the pure and wholesome progress of our institutions- Among our just causes of complaint. against Mexico, arising out of her refusal to treat for peace, as well be fore as since the war so unjustly commenced ocher part, are the extraordinary expenditures in which we have been involved. Justice to our own people will make it proper that Mexico should be held responsible for these expenditures. Economy in the Public expenditures is at all times a high duty which all public functionaries of the govern ment owe to the people. This duty becomes the ,more imperative in a period of war, when large and extrarardi. nary expenditures become unavoidable . . tearing the ex istence of the war with Mexico, all our resources should be husbanded, and no...appropriation, made except such as aro absolutely necessary for irs vigorous prosecution and the administration of the government. Objects of appropriation which in peace may be deemed useful or proper, but Which are not Indispensable for the public service, may, when the country is engaged in a foreign war, be well postponed to a future period. By the ob aervance of this policy at your present session, large am.; ounts may be saved to the treasury, and bi applied to objects of pressing and argent necessity. and thus the creation of a conespondingp amount of public debt , may be avoided. • It is not meant to recommend that the ordinary and necessary appropriations for the sukort of government, should be withheld, but it is well known that at every , session of Congress appropriations are proposed for nu. , memos objects which may or may not be made, without materially affecting the public interests; and these it is , recommended should Got be granted. 11 The act Passed at your last session r reducing the du ties on imports" not having gone into operation until the first of the present month, there has not been tune for its practical erect upon the revenue and the business of the country, to be developed. It is not doubted, however, that the just policy which it adopts will add largely to our foreign trade, and promote the general prosperity.— Although it cannot be.ronatnly foreseen what amount of revenue it will yield, it is animated that it will exceed that produced by the act of 1842, which it superseded.: The leading principles established by it are, to levy the j taxes with a view to raise revenue, Rodin impose thenal upon,the articles imported ¢ ling to their actual value. The act of 1842, by the excessive rates of duty which, it imposed on many articles, either totally excluded theno from importation, or greatly reduced the amount imported, and thus diminished instead of producing revenue. By it the taxes wereciniposed noefor the legitimate purpose of raising revenue, but to afford advantages to favored classes, at the expense of a large majority - of their fellow ' cidrons. Those employed in egrroulture, mechanical vomits, commerce and navigation, were compelled to I contribute from their. substance to swell, the profits and overgrown wealth of the comparatively few who tiad in . , vested their capital in manufactures. The taxeswere net levied in proportion to the value of the l artseies upon which they were Imposed t' but, widely . departirig from this just role, the lighter lases were, in many cases, levied upon articles of luxury and high price, and the heavier taxes on those of necessity and low price, con sinned by theireat mare of the people: It was a ;spurn. the inevitable effect Of which waste relieve favored clas ses and the wealthy few from contributing their 'just proportion for the support of government, and ter lay the burden on the labor of the many, engaged In irthar pur suits than manufactures. . • • A system so 'unequal and unjust bas been superseded by the e xisting , law , which imposes duties nee for the tomtit or itijory of Claret co morsoits, but distributes, sod, as far as pr.cticaVe, equalizes the lathUc hod"' among all classes and occupation. The favored times who, under the unequal and unjust' estate whirl has heat "Pealed.. have heretofore nialiaed farge profits, and many them amused largo &dump at ,the =- prose of the many who have been' made , tributary to than, will hare no Reason to complain if they shall be required to - beer their just pro Patios of the urea mese sery for. the cop** of government. 8o far from it, it will bo iterosivid, by as oungoation of the exiathiglaw, in thalweg of day intposfd t within discrimMabom theieNttline:PritutiPAe, beisla.iiita in their The int:Am* sia .a s eku. k luyei g n competition which tbry Mill enjoy gives them am rideentage which no ether Pletinits. Peseta Olut el this none ohms will Complain. because the, &tier' levied toe nenessery for revs, or.— theserevenue duties; including freights out cbstgar, . _ which the importer must tee before beef.' come io cora- Petition with the bone manufacturer to ear morkets, amount on pearly all our , loading branches of nt4nutse. tine, to more than oniothird of the value of the imported Wide, and in some MCI to altnottlalf its value. With such advantages, it is not doubted that our d..nestie Mo. nifacturee will continue to prosper, realising in well _ . eondueted establishments even greater porno arm: can be derived from any other regular businc.a. .ludeed, 110 far _from requiring the protection of even incidental - revenue duties, our manufacturers in sevrral leading of • eimodtng their businaa, giving evidence of great loge• achy and of their ability to compete, with increased pre pect of aucties, for the open masitet .4 . thew rid, D.. mastic usanufactaree, to the value of severs) millions of dollars, which Cannot Bud • market at home, are wimp ,ity exported to foreign countries. With suds rates of duty so those established by the existing law, the system will probably he permanent; and capitalists, who have made or shall hereafter make, their investments in manufac tures will knovi upon what to rely. The roantry will be satisfied with these rotes, because the advantages Which the manufacturers, still enjoy, result netersarily L•om the collection of revenue for the support of govern ment. High protective rfolirs, from their unjust opera tion upon the masses of the peOple, cannot tail to give 'tette extensive dissatisfaction and cernpliinr, and In constant efforts to chant. or repeal them, rendering on invesunenta in manufactnres uncertain end precarious. Lower and more permanent safes of duty, at the same time that they will yield to the manufacturer fair and remunerating profits, will secure him against the danger of fieguent changes its the system; which cannot fail to ruinously affect his interests. Simultaneously with the relaxation of the restrictive policy by the United States, Groat Britain, from whose example we derived the system, has relaxed hers. She has modified her corn laws, and reduced many other du ties to moderate revenue rates. After ages of experience, the statesmen of that country have been conitraicted by a stern necessity. and by a public opinion basing its deep foundation in the sufferings and wants of impoverished millions, to abandon a system the effect of which was to build up immense [attune,. in the hands of the few, and to reduce the laboring millions to pauperism and misery. Nearly in the same ratio, that labor was depraved, capi tal wee increased and concentrated by the aitish pro- teens° policy. The smiled the system is Great Britain were at length rendered intolerable, and it has been abandoned, but not without a severe woggle on the p art of the protected and favored classes to retain the unjust advantages which they have so long enjoyed. It was to• be expire-bid that a similar struggle would be made by the same classes in the United States, whenever an attempt was made to modify ' or abolish the same unjust system here. The protective policy had been in operation in the United States for a much shorter period, and its pernicious effects were not. therefore, so clearly perceived and felt. Enonxh, how- ever, was known of these effects, to induce its repeal. It would be strange if, in the face of the example a ~Great Britain,our. principal foreign customer, and of the evils of • system rendered manifest in that country by long and painfobexperience, and in the fire of the im mense advantages which, under a more liberal enamel- cial policy, wit are already deriving, and must continue to derive, by supplying her stinting population with food, the United States should restore a policy which she has been compelled to abandon, and thus diminish her ability .to purchase from us the food and other articles which she so much needs, and we so much desire to sell. 13y the simultaneous abandonment of the. protective policy by Gut Britain and the United States, new and important markets have already been opened for our agri cultural and other products; commerce and navigation base received a new impulse; labor and trade have bees released from the artificial trammels which have so long fettered them; and to a great extent reeepricity, in the exchange of commodities, has been introduced at the Name time by both countries, and greatly forth, benefit of both. Great. Britain has been famed, by the pressure of circumstances at home, to abandon a policy which has been upheld for ages, and to open her markets for our immense surplus of breadstuff's; and it is Confidently be lieved that the other powers of Europe will ultimately see the wisdom, if they be not compelled by the paupor ism and suffinnip of their crowded population, to pur sue a similar policy. Our farmers are more deeply interested is maintaining the just and liberal policy of the existing law that: any other class of our citizens. They constitute a large por tion of our population; and it is well known that wino they prosper, all other pursuits prosper also. They have heretofore not only received none of the cretonnes or fa vors of government. but, by the coequal operations of the protective policy', have been made. by the burdens of tai.: ation which it imposed, to contribute to the bounties which have enriched others. When a foreign as well as a horoe market. is opened to them, they must receive, as they are now receiving, in creased prices for their products. They will find a read ier sale, and at better prices, fur their wheat, flour, rice, Indian corn, beef, pork, lard, butter; cheese, and other articles, which they produce. The home-market alone is inadequate to enable them to dispose of the immense surplus of food and other articles which they an capable of producing, even at the mast reduced prices, for the wannest reason that they 'cannot be consumed in the country. The United States can, from their immense surplus, supply not only the borne demand, but „the de ficiencies of fond required by the whole world. That the reduced production of some of the chief arti cles of food in Greet Britain, and other parts of Europe, may have contributed to increase the demand for our breadstuff* and provisions, is not doubted ; hut that the great and efficient cause of this increased demand, and of increased prices, consists in the removal of -artificialtre striations heretofore imposed, is deemed to be equally certain. That our exports of food, already increased and inerewing beyond former example. under the more liberal policy which ban been adopted,will be still vastly enlarged, unless they be checked or prevented by a restore. lion of the protective policy, cannot be doubted. That our commercial and navigating interests will be enlarged inacorrespontling ratio with the increase of trade, is equ ly certain t while our manufacturing interests will still be the favored interest of the country, end receive the incidental protection afforded them by revenue duties; and more than this they cannot justly demani. In my annual message of December last, a tariff of revenue duties based upon the principles of the existing law was recommended ; and I have seen no reason to change the opinions then expressed. In -.view of the probable beneficial effects of that level I recommend that this policy established by it be maintained. It has bat just commenced to operate : and .to abandon or modify it, without giving it a fair trial, would. be inexpedient and unwise, Should defects in any of its details be as certainei by actual experience to exist, these ..inay be hereafter corrected ; but until such defects shall become manifest, the act should be fairly tested. • It is submitted for your consideration,whether it may not be proper, as a waemeuore,stto impose revenue do ties on some of the articles now embraced in the free_ Ilst. Should it be deemed proper to impose inch duties, with a view to raise revenue to meet the expenses of the war with Mexico, or to avoid to that extent the creation of a public debt, their may be repealed when The emer gemey which gave ride to them ehall cease to exist, end einettute no part of the permanent policy of thee:ow:try ; The act of the Sib oCAngest last, "to provide for the better organisation of the treasury. and far the colleetanysamkeepitig transfer and disbursement of the !tektite revenue," has been tar ried into execution as rapidly a. the delay neeerantily ari.ng out of the oppounmmit of new officers, talieg and approving their hones, and, preparing and sneering proper plates ibr ill.: • sasekeeping of the public money, would permit. leas not pro posed thllepart In any respeet.thaln the prineiplea nn:t poles onwteeh this great =eaten. is then led. There are. however. defects in the details of the measure, developed by its practical operation, which are. 'CI forth in the report crew Secretary of the Thesery,lo your aitenoon Wee:tied. The . , dethets world impair to sane extent the seeress aloperation of Vie law at .W 1 times, Inc are eaps'ally embarrass ng When the country is engaged in a war. when the expenditure* are great ly. incromed; , Jantll disbursements made at many hundred miles 411.41114 • fri connexion with this eat feet, I invite your attenfen to the importaneeMeatablialung a braid, of the dent of the t'. S. at' New Perk.. Two-throls of the revetme d rived. f.orn cu.tte t e beingeolleeted at that point, the demand for spemete p.) - the d9ti..wel he large : and a branch mint, where foreign coin and baron could lie unmediately converted Into American c ot., Wouldgreutly . facilitate the •tra motion of the public hustle e, enlarge thectresdatioacif gold and silver. and be, at tbeillatat time. a safe idepotsitory of the public money. The himortance of marinating and ream: mg the price of such of Illepuclic Janda as have beendoneodened in th e market. at the minimum rate itathorized'bfee t erg laws, and remain un sold, induces me squid to recommend the subjeetbayoar favor- - elite corwideration.. Many ndilliorisof *cresol' tbeselands have bean veered in the market *Prelate en: tinny years, and ar gerquamities for noire than ten or, twelay years: and being of an inferior einalitaythey mar reemen urotah• la Loan :rode doe period, unless the price at wideb they may be purchased ' shall be reduced.' •To place a rice upon them above their real value is not Indy , to prevent their sate , and thereby deprive the trees:tey rof any'ineeme from that source, hulls oldest to the elates in which they He. because' it retards their geowh stint 111M11/10 ofpopalatiott x and because they have opposer toihms a tax upon them ea woe other lands within their rends ; held Other proprietors than the United States, for the support their local goirenuncnts. • ' - • , The bencticial effects of the gtaithition Principle have ;men sealized some of the it:Pates owning , the hoot. sei a g g their !int.'s a which it has been adopted. They have been der:am :nu pt also ity the lithted clones, acting settee trustee of the tate - know tr be of Indians is the sale o. their lands lying with in tie" Sin of Mississippi and Alabama. The tfitickmiaw lan A. wiseh would not conunsuld to the withal the minimum cubl rued by the laws of the linked. States for the sate lands. wet,. in pursuance of the treaty of Itithl with that rib.- odered tot sale at graduated and reduced lint ads. The result wait, that large mtantithe of these lauds-were purchased. which would otherw.se have retun,au•d,ustooltL The lands were dAprwli or at their rest va lue. and many persons of limited means brew enabled to pu eblos, stua:: inlets. upon which they liner settled with their th. ka. Chi*: a.u.t Jar -ALAS orton . 4 be Vitobleed by the tian w lei era hisition polcy by Mc United bltetca•, in all the S.. t s Us 'oil cli they - nre the owner...Dl large bagel at lamps, wit eli have Leen 'crag in Market. canna' be doubted. Lt rainier u sound policy to withhold larg e . quantities of the public front the and o. 0.. r c Urea., by filing up oil them pr ees which eXperettee has sbowa they will ooh cow. iml. Ou the tutelary, it is - a wise po. ey , b afford faeihties to our z.-as to become the au u eta, at low and moderate rates, of in c aids of their own, instead of being the tenasliti and dee e olnnui-of. others. lf It be apprehended that 'these lands. if re efree. uralla be Seetaeti is !urge NUMMI:es by fp.- ettln:ons or eaptlaimu the sales may be restricted in hurled yaiun,ties. to actual settlers, or Yowl. , Pureb•mad turpurpow eultivatan. In my laat annual toessrop. I submitted for the considerittiou of rimer,se the preseut system of manes rag the mineral Weals of the United Steles. 'and recommended that they should be brought Ow market awl sold, upon such terms sad tooter such rested oas as Congress might prescrilio.--By the net the 11th of July lasi," the =served lead mines and en itigurois :tto Is in the Suites of • and Arkansas, and • T .rr.tories of Wisconsin and loon." were authorized lobe odd. Toe set iv confined. in its operations, to " lend tallies and con tiguous lands." A lerge trortiou of the roadie lands. containing copper arid other ores, .a rept...semid to be very yaltroble, midi =commend tint prier:lion be made authorizing the sale of these lands. up on each Doles and comlitions as. from their supposed ',slue. to ty. In the judgment M Cou a ress. be deemed advisable, having doe regard the interests or such of our citizens as may eat •d upon them. It 0,11 Irc its or ant, diving your present session. to establish a terrier a' exteemment, and mestend the laws and jurisdic tion of the lin veil :thaws over the territory of Oregon. Our laws regulatrog trade and tetercoorse uhrh the Indian tribie CUM Grum-Rocky mountrona should be emended iodic Pacific ocruit ; and dir the purpose of executing them and preserving fnentll) reletroes with the Indian tribes within sue a littlo tel number of Indian agencies will be required. and should be mftborized by law. The establishment of custom houses. end of post offices and of post mails. and provis'on for the transportancut of the mail on such routes as the paLdro ventence will suggest. require legislative authority.lt will le proper. also. to essablish a surveyor, general's office in that ter ritory, and to make the necessary provision tor surveying the public lands, and brroging them into market. As our eitiiens, who now reside in that distant region. have been subjedted to matt) hardships. privations. and surrifices in their enzgration, toil by their improvements hove enhanced the value of the public lands in the neighborhood of their settlements. it is =- commended that liberal grunts be made to them of snit porions of these lends no they may occupy. told that similar rights or pre-emption be made to all who may emigrate thither within a hafted perod. to be prescribed by law. The report of the Secretary of War °outgun detailed infer melon i attng to the several branches of the public service connected with that department. The operations of the Army have been of ea sansfactory and highly gratifying character. reeuanuend to your early and favorable consideration the measures proposed-by the Secretary of War for speedily filling up the rank and We of the regular army, for its greater elifieron ey in the field. and for raising an additional force to serve dur ing the war with Mexico. Embarrassment is likely to arise for want of legal provisron authorizing compensation to be made to the agents employed by the several States and Territories to pay the revolutionary nod other pensioners the amounts allowed them by_ law. Your aitenfon is invited to the reconicaeridetions of the Secrets of War on this subject. These agents incur heavy respousi's ry ili. ties and perform important duties, awl no reason exists why they should not be placed on the Sauk footing, as to corapetuta bon. w.th other d.sbunting °flit-ere. Oar relations with the various Indian tribes continue to be of a pacific eliaracter. The unhappy gum...taus which have ez isted among the Cherokees for many years past, have bent healed. Since my last annual message Imponam treaties have been a...painted with some of the tribes, by which the Indian tale to iarge tracts of valuable land within the limits of the Suites nod Territories. has been extinguished. and arrange tuella mode for removing them to the country west of the Mi.. Between three and four thousand. of different Oribev, have been removed to the country provided for them by treaty sopulatsons, Mad urrangemvuts have been made libr others to forme. --' In our intercourse with the several tribes particular attention has been given to the importaut subject ot edurat'on. The number of schools established manna them bus been increased mut additaitial means provided. tint orAy for leuebing•thetn the rudiments of edireatron, but of instruMme them in agriculture and the tuceltanie arts. I ref, you to the report of the Secretary of the Navy for a satisfactory view of the operations of the deparment under but charge tlornig the past year. It is gratifying w perceive that while the war with Alessi.° has rendered it necessary to ern ploy an unusual number of one tinned vessel's on her toasts, the protect on due w our commerce in other quarters of the world has not prove.! insufffesent No awaits will be spared to give etlicieney to the naval service in the prosecution of the war; stud I um rompy to know that the officers ant men anzioesly desire to devote themselves to the service of the country in any interprise, however difficult of execution. recommend to your favorable cotsideration the prtmosifon . . . . to add to each of our foreign squadrons an efficient see-meam er, and m especially demanffing attention, the establishment at Penmen's of the necessary means of repairing and fitting the vessels of the Navy employed in the Gulf of Mexico. There are other suggestions in the report winch deserve, and, I doubt not. will Ttet,e your consideration. The progress and condition of the rawl service for the past year are fully presented in the report of the Post-master Gene mi. The revenue for the year ending3Oth of June last, amonnt ed to *L457.1199. which is d 902.641 45 eCnts less than that of the preceding year. The payments for that departm-ut daring the same time amounted to 64.ttul ti -97 21 cents. Of this sum, 6.977- tO cents hove to drawn from the treasury. The disburse mts for the year went a 211,434 77, less than those of the pre -riding year. While the rli sbursements have been thus dimin ished. the mail facilities have been enlarged by new mail tortes of 57.0 miles; an increase of transportation 0f1.764.145 miles, and the establislunent of 415 new post offices. Contractors, postmasters. and others. engaged in this branch of,the service have performed their duties with energy and faithfulness . de:. *Feting commendation. Forman' interesting details connect , ed with the operarons of this ealblisbment. you are referred to the report of the Postmaster General : and his snagestions for improving its revenues are recommended to your favorable consideration. I repeat the opinion repressed In my last an nual messoge.thet.the business of this department should be so regulaied that the revenues derved from it should be mode Coequal the expenditures; and it is believed that this may be done by proper ausliflections of the present laws, as suggested in the report of the Posunaster General, without chatiglng the present rates of postage. With full reliance nn the wisdom and patriotism of your de liberation:, it will he my duty, as n will Ix, my anxious desire, to co-operate with you m even constitutional effort to promote the welfare and maintain the honored put common country. JA.M.P.II K. POLK. NV...streams, December P. 1P46. MerSONS OF TEMPERANCE.—The re gniu meetings of TOWANDA DIVISION. Mk 103, of the Sons of Tempetiace, are held on Tune day Evenings, et 6 o'clock. precisely, in• Temperance Bell, OVilt Atentanye'e & Co's store. Dy onler of the Division. C. S. RUSSELL, R. S. PROPOSALS WILL be received by the North Brandt bon & Coal Company for the parettare ofTimber fie n the Landsat the Company in Bradford county, f a • quantity not less than two millions ffeet, and to be cut during a period not ormeeding two years, and under the direction of no agent of the company . Persons making propos de will state the iecurity they propose to give for the fulfilment of their contrite.. Propoad to be !that the Otficeof Wm. Elwell, Esq.. in Tewanda, on or before the 14 January, o after that day propounds will not be considered. W. }l. Nest N. B. Into and Coal Co. $lOO REWARD. IEXTILL be paid for the deteetion and conviction of V an y - person or persona found cutting, Timber nn tho Lands of the North Branch Iron and Coal Co., tw.t's out autbority. from the Company for ect doing. The Reward wilt be paid through thp hands of. At Towanda. WM ELWELL: CLOTHS, CLOlllB—We wish the attention of all ' who are in want - of Clothe, Cassimeres, &Whet &c., to our large stock en hand. These cloths moat he sold. We never have been undersold. and never will he. Cull and examine. G. F. FLYNT 4. CO. `i_OMIMEVNIKIr. J• N. SUSIN ER, M. D., DENTIST, announces to . Insfriends and the pubdc that he it again in town and will remain a few weeks. ,He will be happy to wait upon his friends, at his rooms at Mr. Woodrutra. on Mau) street—nearly oppusite the Reporter office. CASH WILL , DE PAID FOR SHEEP PELTS. by Am 9. MON'FANYE & FOX.' ADAIINISTRATOWS ,NOTICE. ALL persons indebted to the estate of Joseph Tuthill late of Saithfield township, deed., are requested to make immediate payment, and those having demands against said estate, are 'requested to present them forth. with for adjustment. BENJ. TUTBIILL, Smithfield, Dee. 9, 1846. Administrator.. G..g. FLYNT 8t cos, 'lhe Cheapest Store in Towania ! The truth THAT G. E. F'. do CO.. Imcetaten the brad IR se/. ling cheap geode of all dancriptions, naa eardirdnag those " great Window: a udace ta. 4 te'l bsaalag ticks, and TNe huff; is That 11. E. plpia Ow, will cantata en melt Dry . c,ioneries, Crockery. Hardiest's Sce, cheaper than any when establishment in Baulionl Causgy, and Renumber, That on tbase "taro sayings" hangs all Alto truth that is neeeressery to lemur. goad b ortro i no t o o g awe who purchase for clash. No. b thick R,to. DRINTIii--01arie boloatifurfot of PRINTft. MONTANTE A rux., FS