iirabtor^ilcpork. r —*4 ff' L\ (). GOODRICH, EMTffR* TO WATS^pJUCkZI Gatnrihrn Rio nunn, Januiun 5. 1858 TI^KWS —One Dollar per annum, inmsriablyjn adrtmer.— Funr inflict previous tothe rjej'iratitm of a stibsrrjptiim. notice inilt In giren In/ a printed wrapper, and if not re newed, thr ] taper icill in ull case* be slupjwd. Cl.riHSlStl—77ic Reporter will be tint to Clubs at the fd lowing extremely low riiirt : ii riqiies for $5 00 115 ropirt for. .. ?12 0(1 1<) eopiti for Sooj 20 ropirt for. l5 00 AI) v KRTISKMHNTS— For a square of ten linct or lest. One /tollnr for three or less insertions, and twenty-five cents for each subsequent insertion. Jon-WimK— F.rrrntnl with nrrurary and despateh. and at reasonable i*rim— with every facility for doing Hooks, lltanks, Hand-bills, Ball tickets, $-e. MONKV may be sent by mail, nl our risk—en closed in an en refepe, and properly directed, we will be responsible for its safe delivery. t6r To make room for the President's mes sage, we have been obliged to defer our Local Items, Congressional proceedings, News of the Week, &c. PENNSYLVANIA LEGISLATURE. The legislature of this State convened on Tuesday last, aud the first day's proceedings have reached us. In the House, RICH AKI WON L. WRIGHT, of Philadelphia, was elected Spea bcr upon the first ballot. 11l the Senate, WM. M. PIATT, of Wyoming, was elected Speaker u}>Oii the first ballot. The Governor's Message was expected on Wednesday ; we shall publish it next week. CONGRESS. In the House quite an excitement was occa sioned by Mr. CAMPBELL, of Ohio, offering a resolution placing Mr. OKU, of South Carolina, temporarily in the Speaker's chair. After con siderable discussion, the resolution was with drawn. Several more ballots have been had, with no material difference iu the result from those we have already published. The Message was sent in on Monday ; in the Senate it was received and ordered to be printed ; in the House, after a long debate, it was decided by a vote of 120 to 87 that it should not lie read. PRESIDENT S MESSAGE. Read Monday, December 31, 1855. fellow-Citizens of the Semite and of the. J louse of llrprvseututires : The constitution of the United States pro vides that Congress snail annually assemble on the first Monday of Decemlier, and it has been usual for the President to make 110 communi cation of a public character to the Senate and House of Representatives, until advised of their oeadincss to receive it. I have deferred to this usage until the close of the first mouth of the session, but mv convictions of duty will not permit me longer to postpone the discharge of the obligation enjoined by tlie Constitution, "to give to the Congress information of the state of the Union, and to recommend to their consideration such measures as he shall deem necessary and expedient." It is matter of congratulation that the repub lic is tranquilly advancing in u career of pros perity and peace. FOREIGN RELATIONS CENTRAL AMERICA. Whilst relations of amity continue to exist between the United States aud all foreign pow ers, with some of them grave cf nest ions are de pending, which may require the consideration of Congress. Of such questions, the most important is that which lias arisen out of the negotiations with Great Britain in reference to Central America. Bv the convention concluded between the two governments on the 19th of April, 1850, both parties covenanted that" neither will ever occupy, or fortify, or colonize, or assume or ex ercise any dominion Over Nicaragua, Costa Ri ca. the Misquito Coast, or any part of Central America." It was the undoubted understanding of the United States, in making this treaty, tiiat all the present states of the former republic of Central America, and the entire territory of each, would thenceforth enjoy complete inde pendence • and that both contracting parties engaged equally and to the same extent,for the E resent and for the future, that if either then ad any claim of right in Central America, such claim, and all occupation and authority nnder it, were unreservedly relinquished by the stipulations of the convention ; and that no dominion was thereafter to lie exercised or as sumed in any part of Central America by eith er Great Britain or the United States. This government consented to restrictions in regard to a region of country where we had specific and peculiar interests, only upon the conviction that the like restrictions were in the same sense obligatory upon (ireat Britain. But for this understanding of the force and effect of the (invention, it would never have been concluded by us. So clear was this understanding on the purt of the United States, tiiat, in correspondence contemporaneous with the ratification of the convention, it was distinctly expressed that the mutual covenants of non-ovcupatiou were not intended to apply to the British establishment at the Balize. This qualification is to be as cribed to the fact that in virtue of successive treaties with previous sovereigns of the coun try Great Britain hail obtained a concession of the right to cut mahogany or dye woods at the Balize, but with positive exclusion of all sove reignty or domain ; and thus it confirms the natural construction and understood import of the treaty as to all the rest of the region to which the stipulation applied. It however became apparent, at an early day after entering upon the discharge of my present functions, that Great Britain still continued in the exercise or assertion oi large authority in nil part of Central America commonly called the Mosquito ('oast, aud covering the entire length of the state of .Nicaragua aud a part of Costa lticu ; that she regarded the BalizP us her absolute domain, and was gradually exten ding its limits at tlnfexpense of the state of Honduras; and that she had formally coloniz ed a considerable insular group known us the Bay Islands, and belonging, of right, to that State. .V! these act- or pretensions of Great Brit ain, being contrary to tlie rights of the States ] of Central America, ami to the manifest tenor of fceeMtf pulatj#ns |tli the Unitedgfßt|ps,aas .undensoooth |Mirties, and in the discussion, therefore, has not looked to rights which we might assert, independently of the treaty, in consideration of our geographical po sition, and of other circumstances, which cre ate for us relations to the Central American States different from those of any government of Europe. The British government, in its last commu nication, although well knowing the views of the United States, stiil declares that it sees no reason why a conciliatory spirit may not ena ble the two governments to overcome nil ob stacles to a satisfactory adjustment of the sub ject. Assured of the correctness of the construc tion of the treaty constantly adhered to by this government, and resolved to insist on the rights of the United States, yet actuated also by the same desire, which is avowed by the British government, to remove all causes of serious misunderstanding between two nations associa ted by so many ties of interest and kindred, it has appeared to me proper not to consider an amicable solution of the controversy hopeless. There is, however, reason to apprehend,that, with Great Britain in the actual occupation of the disputed territories, and the treaty there fore practically null, so fur as regards our rights, this international difficulty cannot long remain undetermined, without involving in scrions dan ger the friendly relations, which it is the inter est as well as the duty of both countries to cherish and preserve. It will afford me sin cere gratification, if future efforts shall result in the success, anticipated heretofore with more confidence than the aspect of the case permits me now to entertain. KXr.IJSIt RECRUITMENT. One other subject of discussion between Great Britain and the United States has grown oat of the attempt which the exigences of the war in which she is engaged with Russia in dueed her to make, to draw recruits from the United States. It is the traditional and settled policy of the United States to maintain impartial neutrality during the wars, which from time to time, oc cur among the great powers of the world.— j the duties of neutrahtr Bpird|J tfee belligerent states, we may reajonay cfl wet ftieni not to interfere with oat lnvSl cM its benefits. tl"jJ existence ufatirh hostilities, our the individual right to continue all lheijr toined pursuits, by land or by sea, at home or j abroad, subject only to such restrictions in this wu r .the usage of nn-i tions, or special treaties, may impose ; and it is our sovereign right that our jurisdiction and i our territory shall not lie invaded by either of the belligerent parties, for the transit of their armies,, the operations of their Meets, the levy , of troops fAr their service, the fitting out of cruisers by or against either, or any oilier act or incident of war. Ami these undeniable rights of neutrality, individual and national, the United States will uuder uo circumstauccs surrender. Iu pursuance of this policy, the laws of the United States do not forbid their citizens to sell to either of the belligerent powers, articles contraband of war, or to take niuuitious of war or soldiers ou board their private ships for transjHirtation ; and although in so doing, tlie individual citizen exposes his person or projier ty to some of the hazards of war, his acts do not involve any breach of national neutrality, nor of themselves implicate the government. — Thus, during tlie progress of the present war iu Eurojie, our citizens have, without national responsibility therefor, sold gunpowder aud arms to all buyers, regardless of the destina tion of those articles. Our merchantmen have been, and still continue to be, largely employ ed by Great Britain and by France, in trans porting troops, provisions, and munitions of war to the principal soot of the military ojicra tions, and in bringing home their sick and dis abled soldiers ; but such use of our mercantile marine is not interdicted by the international, or by our municipal law, and therefore does not conpromit our neutral relations with Russia. But our municipal law, in accordance with the law of nations, peremptorily forbids, not only foreigners, but their own citizens, to fit out, within tlie limits of the United States, a vessel to commit hostilities against any State with which the United States are at peace, or to increase the force of any foreign armed ves sel intended for such hostilities against a friend- 1)' State. Whatever concern may have been felt by either of the belligerent powers lest private armed cruisers, or other vessels in the service of one, might be fitted out in the jiorts of this country, to depredate ou the property of the other, all such fears have proved to be ground less. Our citizens have been withheld from any such act or purpose by good faith and by j respect to the luw. While the laws of the Union are thus per emptory in their prohibition of the equipment or armament of belligerent cruisers in our |>orts, i they provide not less absolutely that no JHTSOU shall, within the territory or jurisdiction of the United States, enlist or enter himself, or hire ' or retain another person to enlist or enter him self, or to go beyond the limits or jurisdiction of the United States with intent to be enlisted or entered in the service of any foreign State, either as a soldier, or a marine or seaman on board of any vessel of war, letter of marque, J or privateer. And these enactments are also in strict conformity with the law of nations, which declares that no State has the right to raise troops for land or sea service iu another State, without its consent, and whether forbid den by the municipal law or not, the very at tempt to do it, without such consent, is an at tack 011 the national sovereignty. Such beiug the public rights suid the muni cipal law of the Uuited States,no solicitude on the subject was entertained by this government ; when a year since the British Parliament pas sed an act to provide for the enlistment of fo reigners in the military service of Great Brit ain. Nothing on the face of the act, or in its public history, indicated that the British gov ernment proposed to attempt recruitment in the United States ; nor did it ever give intimation of such intention to this government. It was matter of surprise, to find, subsequently, that the engagement of jicrsons within the United States to proceed to Halifax, in Nova Scotia, and there enlist in the service of Great Britain, was going 011 extensively, with little or no dis guise. Ordinary legal steps were taken to ar rest and punish parties concerned, and put an end to acts infringing the municipal law and derogatory to our sovereignty. Meanwhile suitable representations 011 the subject were addressed to the British government. Thereupon it became known, by the admis sion of the British government itself, that tiie attempts to draw recruits from this country, originated with it, or ut least had its approval and sanction ; hut it also appeared that the public agents engaged in it had " stringent in structions" not to violate the municipal law of the Uuited States. It is difficult to understand how it should have sup|oscd that troops could be raised here by Ureat Britain without violation of the mu nicipal law. The unmistakable object of the law was to prevent every sucli act, which, if performed, must lie either iu violation of the law, or iu studied evasion of it, and iu either alternative, the act done would be alike injuri ous to the sovereignty of the United States. In the meantime, the matter acquired addi tional importance by the recruitments iu the United States not being discontinued, and the disclosure of the fact that they were prosecut ed upon a systematic plan devised by official authority, that recruiting rendezvous had been opened in our principal cities, and depots for the reception of recruits established on our frontier ; and the whole business conducted under the supervision and by the regular co operation of British officers, civil and military, in the North American provinces, and some in the United States. The complicity of these officers iu an undertaking, which could only be accomplished by defying our laws, throwing suspicion over our attitude of neutrality, and disregarding our territorial rights, is conclu sively proved by the evidence elicited on the trial of such of their agents as have been aje preheuded and convicted. Some of the officers implicated arc of high official position, and ma ny of tlicni beyond our jurisdiction, so that le gal proceedings could not reach the source of the mischief. These considerations, and the fact that the cause of complaint was not a mere casual oc currence, but a deliberate design, entered ujmvu full knowledge of our laws and national policy, and conducted by responsible public functiona ries, impelled me to present the ease to the Bri tish government, iu order to secure not only a cessation of the wrong, but preparation.— Ihe subject is still under discussion, the result of which will be communicated to you in due time. BRITISH RELATION'S GEXERAI.I.Y. I reiicut the reeumiueudutiou submitted to the last Congress, that provisions lie made for tlie aj >{h >i utiiu'iil of a commissioner, in counex iOHrith i-i-teat ta'-swry aniiestab snirtMaiK-line Svlim dHides tjßk terri4 tofy fnnii*)e t*asH of Be e\. and beM dungljlof be^cenjtltc, subjects of Great Tfntain and the citizens of the United States, including their respective a speedy arrangement has contributed hitlierto to induce ou both sides forbearance to assert by force what each claim as a right. Continu -1 ance of delay on the part of the two govern ments jto set in the -pattcr* p ill jticvfuse tire dangers ftn'd ißfficdltirts of the cAlrtrAvWsy; Misundei standing exist* a* to tlta extant, character ami value of the possessor rights of the Hudson's Bay Company, and the pro|ierty of the Puget's Sound Agricultural Comjaiiiy, reserved in our treaty with Great Britain rela tive to tli Territory of Oregon. I have rear son to believe that a eessiou of the rights of both companies to the United States, which would be the reaiiiest menus of terminating all questions,eau be obtained on reasonable terms; and, with a view to this end, I present the sub ject to the consideration of Congress. The colony of Newfoundland, having enact ed the laws trequired by the treaty of the sth of June, 1554, is now placed ou the same foot j iiig, in respect to commercial intercourse with the United States, as the other British North American provinces. The commission, which that treaty contem plated for tbopurposcof determining the rights J of fishery in rivers and mouths of rivers ou the coasts of the United States and the British North American provinces, lias been organized and has commenced its labors ; to complete J which there is need further appropriations for the service of another season. SOUND DUES. In pursuance of the authority, conferred by a resolution of the Senate of the United States, passed on the 3d day of March last, notice was given to Denmark, on the 14th day of April, ! of the intention of this government to avail it self of the stipulation of the subsisting conven tion of friendship, commerce and navigation be tween that kingdom and the United States, whereby either party might, after , ten years, terminate the same at the expirutiou of out* year from the date of uotiec for that purjKise. The considerations which led me to call the attention of Congress to that convention, and induced the Senate to adopt the resolution re ferred to, still continue iu full force. The con vention contains an article, which, although it docs not directly engage the United States to i submit to the imposition of tolls ou the vessels ! and cargoes of Americans passing into or from ! the Baltic sea, during the continuance of the treaty, yet may, by possil i!ity, be construed as implying such submission. The exaction of , those tolls not being justified by any principle | of international law, it became the right and j the duty of the United States to relieve thciu ' selves from the implication of engagement on the subject, so as to be perfivtlv free to act in the premises in such way as their public inter ests and honor demand. I remain of the opinion that the United States ought not to submit to the payment of the Sound dues, not so much because of their amount, which is a secondary matter, but lo calise it is in effect the recognition of the right of Denmark to treat one of the great maritime highways of nations as a close sea, and the na vigation of it as privilege for which tribute may be inqioscd upon those who have occasion to use it. Tli'is government, on a former occasion not unlike the present, signalized it- determination to maintain the freedom of the seas, and of the great natural channels of navigation. The Barbnrv States had, fur a long time, coerced the payment of tribute from all nations whose ships frequented the Mcdterrancan. To tlie last demand of such pnymcut made by them, the Uuited Stales, although sulfering less by their depredations than many other nations, returned the explicit answer, that vre preferred war to tribute, and thus opened the way to the relief of the commerce of the world from an iguominous tax, so long submitted to by the more powerful nations of Europe. If the manner of payment of the Sound dues dill'er from that of the tribute formerly conced ed to the Barhary States, >till their exaction by Denmark has no better foundation in right. Each was, in its origin, nothing but a tax on a common natural right, extorted by tliose, who were at that time able to obstruct the free and secure enjoyment of it, but who no longer jos sess that power. Denmark, while resisting our assertions of the freedom of the Baltic Sound aud Belts,has indicated a readiuess to make some new ar rangement 011 the subject, aud has invited the governments interested, including the United States, to be represented iu a convention to assemble for the purj>osc of receiving and con sidering a projiosition, which she intends to submit, for the capitalization of the Sound dues, aud the distribution of the sum to lie paid as commutation among the governments, accord ing to the respective proportions of their mari time commerce to aud from the Baltic. I have declined iu behalf of the United States to ac cept this invitation, for the most cogent rea sons. One is, that Denmark does not offer to submit to the convention the question of her right to levy the Sound dues. A second is, that, if the convention were allowed to take cognizance of that particular question, still it would not be competent to deal with the great international principle involved which affects the right to other cases of navigation aud com mercial freedom, as well as that of access to the Baltic, Above all, by the express terms of the proposition it is contemplated, that the consideration of the Sound Dues shall be com mingled with, and made subordinate to, a mat ter wholly extraneous, the balance ol power among the governments of Europe. While, however, rejecting this proposition, aud insisting on the right of free transit into and from the Baltic, I have expressed to Den mark a willingness, ou the part of the United States, to share liberally with other powers in compensating her for any advantages which commerce shall hereafter derive from expendi tures made by her for the improvement and safety of the navigation of the Sound or Belts. I lay before you, herewith, sundry documents on the subject, in which my views are more fully disclosed. Should no satisfactory nrrauge mcnt be soon concluded, I shall agaiu call your attention tu the subject, with recommendation of such measures as may appear to be required in order to assert and secure the rights of the United States so far as tliey arc affected by the pretensions of Denmark. FH.VN'CK. I announce with much uTatific.ition, that, since the adjournment of the lust Confess,the (|uestion then existing between this govoru uient aud that of France, respecting the French Consul at San Francisco, lias hecu satisfactori ly determined, uutl that the relations of the continue to be of prtHTMSst; which has been l' r K* > V- vl W i United Hteltcs of Greece, growing M of: the sequestration, by public authorities of that country, of property la-longing to the present mAmmmmm in'— il rti A lining vw4.-w ■ bad been the subject of very earnest discussion here tofore, has recently been settled to the stitig faction of the [wirty interested and of both go vernments. . . L { > ; i wai*- WHh fcpriiti; -peaceful relations are still main tniiiiwil r fitirti itiiMift iu* securing the redress w ruin's cpmplaiued of by this government. Spain bus not otjly dis avowed and disapproved the conduct of the officers who illegally seized and detained the steamer Slack Warrior at Havana, but has al so paid the sum claimed as indemnity for the loss thereby inflicted on citizens of the United States. In consequence of a destructive hurricane, wliich visited Culai in 1841, tlie supreme au thority of that island issued u decree, permit ting the importation, for the period of six months, of certain buikUug materials aud pro visions free of duty, but revoked it wheu about half the period only had elapsed, to the injury of citizens of the United Stab's who had pro ceeded to act on the faith of that decree. The Spanish government refused indemnification to the parties aggrieved, until recently, when it was assented to, payment being promised to be made so soon as the umount due euu be ascer tained. Satisfaction claimed for the arrest and search of the steamer Eldorado has not yet been ac corded, but there is reason to believe that it will be, and that ease, with others, continues to be urged on the attention of the Spanish go verimxiit. Ido not abandon the hope of con cluding with Spain some general arrangement, which, if it do not wholly prevent the recur rence of difficulties in Culm, will render them less frequent, and whenever they shall occur, facilitate their more speedy settlement. MEXICO. The intcr{K>sitioa of this government has lieen invoked by mauv of its citizens, ou account of injuries done to their jiersoui; aud property, for which the Mexican government is resjiousible. The unhappy situation of that country, for some time past, has uot allowed its government to give due consideration to claims of private reparation, aud has appeared to cull for and justify some forbearaucc iu such matters ou the part of this government, liut, if the re volutionary movements which have lately oc curred in that rejmblic, cud iu the organiza tion of a stable government, urgent appeals to its justice will then be made, and, it may be hoped, with success, for the redress of all com plaints of our citizens. NICAKAOCA. In regard to the American republics, which, from their proximity and other considerations, have iccuiinr relations to this government, while it Ims been my constant aim strictly to observe all the obligations of political friend ship aud uf good neighborhood, obstacles to this have arisen iu some of them, from their own insufficient power to check lawless irrup j tions, which in effect throws mast of the task ou the United States. Thus it is, that the dis tracted internal eonditiou of the State of Ni earagua has made it incumbent ou me to ap peal to the good faith of our citizens to abstain from unlawful intervention in its affairs, and to adopt preventive measures to the same end, which, on a similar occasion, had the best re sults in re-assuring the peace of the Mexican States of Sotiora aud Lower California. TREATIES. Since the last session of Congress a treaty of amity, commerce aud navigation, and for tlie surrender of fugitive criminals, with the with the kingdom of the Two Sicilies ; a trea ty of friendship, commerce and navigation with Nicaragua; ami a convention of commercial re ciprocity with the Hawaii* kingdom have been negotiated. The latter kingdom aud the State of Nicaragua have also acceded to a declara tion, recognizing as international rights the principles contained in the convention between the United States and ilnssia of the 22d of July, 1754. These treaties and conventions will be laid before the Senate for ratification. TREASURY. The statements made in my last annual message, resjiecting the anticipated receipts and expenditures of the Treasury, have been substantially verified. It appears from the report of the Secretary of the Treasury, that the receipts during the last fiscal year ending June 30, 1855, from ail sources, were sixty-five millions three thousand nine hundred aud thirty dollars; and that the public expenditures for the same period, exclusive of payments on account of the pub lid debt, amounted to fifty-six millions three hundred and sixty-five thousand three hun dred and ninety-three dollars. During the same jieriod, the payments made in redemp tion of the public debt, including interest and premium, amounted to nine millions eight hun dred and forty-four thousand five hundred and twenty-eight dollars. The balance iu the Treasury at the begin ning of the present fiscal year, July I, ISnf, was eighteen millions nine hundred and thirty one thousand nine hundred and seventy-six dollars ; the receipts for the first quarter, and the receipts for the remaiug three quar ters, amount, together, to sixty-seven millious nine hundred and eighteen thousand seven hundred and thirty-four dollars; thus afford ing iu all, us the available resources of the current fiscal year, the sum of eighty-six mil lions eight hundred and fifty-six thousand sev en hundred and ten dollars. If, to the actna! expenditures of the first quarter of the current fiscal year, bo added the probable expenditures for the remaining three quarters, as estimated by the Secretary of the Treasury, the sunt total will be seventy-one million two hundred and twenty-six thousand eight Imudred and forty-six dollars, thereby leaving an estimated balance in the treasury on July 1, 1856, of fifteen million six hnndred and twenty-three thousand eight hundred and sixty-three dollars and forty-one cents. In the above estimate*] expenditures of the present fiscal year are included three million dollars to meet the last instalment provided for in the late treaty with Mexico, and seven million seven hundred ami fifty thousand dol lars appropriated on account of the debt due to Texas, which two sums make an aggregate a mount of ten million seven hundred and fifty thousand dollars, and reduce the expendi tures, actual or estimated, for ordinary objects of the year, to the sum of sixty million four hundred and seventy-six thousand dollars. The amount of the public debt, at the com mencement of the present fiscal vear, was for ty million five hundred and eighty-time sand six hundred and thirty-one dollars ;u |,j ||efcfpKc>bt of the federal gov!! ni ' l at this time is less than f (jr t >v The retnnuhl of certain other government to two hundred and f,,rtv three thousand dollars, referred to in i, lv message as outstanding, has since been* i I ■ hlly t ''"l'lui lhi> il nowhl be d,th cult to devise a system suiierior to thin i _ which Hie f fiscal business of the gov,A is now conducted. Notwithstanding t|„ „ umnlier of public agents or collection aiaf'ijj? burscmcnt, it is lielievcd that the checks aed guards provided, including the require, ,"r oud*ly render it scare,-lv for any considerable fraud on the part agents, .0- neglect involviug liazanl of public loss, to escape detection. I renew !, ( , v ever, the Teeonmu rolnUoii heretofore ruad<> , v me,as the eiiHctiiidnt of a law declariii" it fclii ny on the ]*,rt of puldic officers, to insert fat,, entries in their booksof record or account, or to make false returns, and also requiring them on the termination of their service to deliver to their successors all books, record*, and otlvr objects of a public nature in tlieir custody Derived as our public revenue is, in chiefpart from duties on imports, its magnitude affords gratifying evidence of the prosperity, not only of our commerce, but of the other great in terests u]ou which that depends. The principle that all moneys not required for tlie current exjieiisas of the government should remain for active employment in the j hands of the people, and the conspicuous fuet j that the annual revenue from all sources ex ceeds, by matry millions of dollars, the amount | needed for a prudent and economical adiuini;,- ] tration of pulilie affairs, cannot fail to sU"g fc st ! the propriety of an early revision and redue ! tiou of the tariff of duties on imjiorts. ]t p j now so generally conceded that the purpose ; of revenue alone can justify Uie imposition of duties ou imports, that, in re-udjustiug the j m . j {*ost tables and schedules, which miqueMioiiii ! bly require essential modifications, a dvpar j turc from the preaeut tariff is not anticipated. AK.UY The arm) , during the past yenr, has lx* u engaged in defending the Imliau frontier, the state of the service permit ting hut few' ami small garrisons in our |H*ruiaiieiit fortifications. The additional regiments authorized at the lust session of Congress have been recruited and organwed, and a lurge jtortiou of the troops have already been sent to the field. All the duties which devolve <>n the military establishment have been satisfactorily ]orfyriu ed, aud the dangers and privations inoitlent to the the service reiquired ol our troo{>s hare furnished additional evidence of their courage, zeal and capacity to meet auv requisition which their country may make npun tin in. For the details of the military o[ it-ra tions, the distribution of the tro<>ps ami addi tional provisions required for the military ser vice, 1 refer to the report of the Secretary of War and the accompanying docsuiß-uts. Exjieriencc, gathered from event.- which have transpired since my last annual message, has bat served to confirm the o]tiuion tben ex pressed of the propriety of making provision, by a retired list, for disabled officers, and lot increased compeiisation to the Oliv er- retained on the list for active duty. All the reasons which existed when these measures were recom mended on former occasions coatiuue vriiliuot modification, except so lur as circumstances have given to some of them additional force. The recommendations heretofore made for a partial reorganization of the annv, are ai*> renewed. The thorough elementary education given to those officers, who commend- their serviees with the grade of cadet, qualities iiiem, to a considerable extent, to |erfnriii f!.•• ■ iutie of every uriu of tle service ; but to give lite highest efficiency to artillery requires the prac tice and sjK-c-ial study of many years; and > is not, therefore, believed to be advisable i maintain, in time of peace, a larger force of that arm thamtfcui le usually employed in tic duties appertaining to the service of field and siege artillery. The duties of the staff in ail its various branches belong to the m<>s m: - of troops, aud the efficiency of an army intii field would materially dcepeud upon tlie a' i'.ty with which those duties are discharged. 1- 1 not, as in the ease of the artillery, a -pxkilitY, but requires, al>o, an intimate knowledge the duties of an officer of the line, and it is Hot doubted that, to complete the ediic.it. of an officer for either the line <>;• the m r •- staff, it is desirable that he shall have .- i i in both. With this view, it was recommend ed ou a former occasion that the duties of tlie staff should be mainly performed by details from the line ; and, with conviction of toe advantages which would result from such a change, it is again presented for the considera tion of Congress. NAVY. The report of the Secretary of tho Navy, herewith submitted, axhibits in full the "i— --oppcrations of the pa-st year, together with t;. present condition of the service, and it i l|lK ' suggestions of further legislation, to which your attention is invited. The construction of the six steam frigb'" for which appropriations were made by : last Congress, has proceeded in the most sit - factory manner, and with such expedition. to warrant the belief that tiiey will bo rea<:y for service early in the coming -pi'ing. I portant as this addition to our naval fora' it still remains imuleqiiate to the eontin- r exigencies of the protection of the extern-' sea coast and vast commercial interests <>! b'_ United Stares. In vie\v of this fact, and the acknowledged wisdom of the policy > !i •' gradual and systematic iuerea.se of the mo}'-' appropriation is recommended for the c*>"truc tiou of six steam sloops-of-war In regt.rU to the stejvs taken in execution the act o." Cougross to promote the etlicie.i' y of the navy, it is unnecessary for me to more than to express entire concurrence in >•' observations ou that subject, presented by 1111 Secretary in his report. TOST OFKICK. It will be perceived, by the report <*f Postmaster General, that the gross e.\p : " ture of the department for the last tisttt' ~ l" was nine million nine hnudred and -ix'ys -- thousand three hundred and forty two lK ' " ' and the gross receipts seven milb-si three ■ dred and forty-two thousand one l.iiinh'''• thirty-six dollars, making an exec— e! < y : diturr over receipts of two millions " lX ■ '!' dred and twenty-six thousand two '' ' 'b aud six dollars ; ami that the cost oi transportation during that year was s'-x dred ami sovent v-funr thousand nine l" l |" and fifty-two dollars greater than the pf* year. Much oi* the heavy expend > lll which the treasury is thus subjected' t ' u ascribed to tfw large quantity of priato 1 ■ ; ter convevt-d bv the mails, either Iran ' l '