ME 9 reasonto run my lord. But I 4 11•11.4" Pr o -Your Purse.' atiiitiin as fast as you can.' std a, draft of fifty thousand florins from ' f :"1. itChamberlain which I want to deliver • • 'The de uce you ! and how came . . to,theet with the .ehamberlainl' • ,•• me it was a debt which' he bad !to.pay to He is going to start this ye '. ry night with his lady faits his estates.' 'Ate, you rand, man!? How do you know -Tithat P s'AdyLord, the Minister of finances will -• pay all:your debts, if you will keep him in minister.' • - *Watchman, you aro besides yourself, . tuiherldid, You see the minister of finances "?' I Phillip - then• related his adventure's to the, Prince, who was greatly surprised and re-. *cod - alits , relation. • -+Ttiii Very': man we are seeking,' cried seVeril voices at ortge, when Phillip, Rosa, ~•:', ;;-and-the Prince, Are surrounded by six . strong officers of the Police. Phillip took the girl's hand, and said : 'Do not be afraid 1' -The Prince patted Philip on the shoulder, slnd 'lt was a foolish trick. I did • not tell you without reason to run away in time.. But-do not be afraid, you shall not rte harnied:!.. , • • 'That ,will be explained hereafter,' one*? the offiOere said, 'in the meantime hu will go with us. .'Whither ?' Phillip asked am on du . ty ; I ant die watchman.' • • '"That we heard, and for that very ma . eon you must go with us.' , Let him alone, gentleman,' said Julian, ;catching for money. As he did not find any. he whispered to Philip, to give them , something, out of the purse. But the po-1 !icemen separated them and said. 'You must both go with us.' Rosa was released. Just. as the watch men were proceeding to take Phillip and the Prince to the Minister of police, a carri age drove up, and a man wearing a star pushed. the policeman aside, and released the Prince. . Julian did not know which way to turn in his embarrusment, for he recognised Duke Hermann. 'Answer 1'- the Duke cried, with. a thun dering voice. • Julian shook his head, and .„ beckoned to the Duke to continuo his way. • and the latter became more anxious to know with whoin he had to deal at the ball. He questioned the policemen, who said that he had orders to take the watchman imme diately to the Minister of Police; that the watchman, had sung scandalous songs, as they had heard with their own earl; and they-had caught him near the church en gaged. in confidental conversation with the mask, who seemed almost as suspicious as the watchman. That the mask had declar ed he belonged to the court; but that was evidently false. They had thought it. therefore, their duty to arrest the mask. 'That man does not belong to the court, the duke replied. 'He has antroduced•hiet self unlawfully into the ball-room,and made every - body believe that ho was Prince ',le . Ilan, But he•had to show at last his fad • • to' rne, as he had 'also deceived me. He is an unknown person, an adventurer. Seize biin then ; you have made a valuable cap ture I.' After these words the duke returned to his carriage, and crying once more, 'let him not escape,!' drove off: ..Tho•Prince saw that he was lost. He 'thought it was improper to show his face to the policemen, because they -would have made his pranks public,. He saw less dan :Or. in unitiesking his face before the head chantberlain, or the Minister of Police. He cried, therefore, with resolution, 'very well, :go' Mil' • They moved on, and Rosa followed them with . tearful eyes: - • , 'As they approached the palace, Philip's l heart beat finer. His; cloak, horn and pole I were taken from him. The Prince said a feW.wcirds to 'a gentleman of rank. The po -ctinA ism. was forthwith sent away.- The Prince went up stairs, and Philip was or- Alered to follow. Before the Prince left him *mated once More to hint, not to be • was led into a small ante . chtnitheri Where. he remained - alone for a long time. At last one of the royal cham berlains came in and said, Come with me, the• King wants to see you." • • • Philip. was frightened almost out of his senses,. His knees became weak. He was . introduced into a beautiful room. There the ota King sat laughing ,at a small table. .Byltie' side Prince Julian was standing . • • 'synhout his mask. No one else was in the 'The king looked at the young man for some'time, apparently with pleasure. orell'me every thing exactly,' the King said, 'as it has happened to night. Philip's in n wh ich courage revived at the kind man ner the venerable old King ad &sped 'him, and he confessed most minute ,- ly,:,wjiat km had done and experienced from • beginning "to the end, yet he was prudent Ittid'mOdest enough to skip those communi• • cetkons.of 'die courtiers, which might have • • brerifibl the Prince into trouble. - Thciiing several dines during Philip's ,noration burst into laughter ; and after hav ing, ttildreased him several questions about liis. flatrillts and trade, he . took some gold pieces . and gave • them to him with these words ' , •vms, go my son, and , take care of your ,n,harm will be', done you, but do tell any.one what you-have done-or heard:tbta_taght lihillip fell on hie Imes before the King, Priered.hie hand while •he stammered words`Of, thanha, As he, rose to de , 71.1144:),ti0cA lulled said t;- . 41,103tAPit, bujubly 410 ,YefaL.?flp.iestY , • -1474,401Avilythe:'Yeangoalgrig.t03W/11t ink inthe ,140410,r0H,1/ ,, ltittfo zQ tottp.n",little debt;,hh biovinttho trouble I: hatTo : occaßioned ,hico PhjL :Cing-P94494 wiili a smile, 444 11Pi+sllAo~9P?4t1 a+ ortrinco.k.taid the , King, threatening With ligrgreihgreriVit fortUfls Yoll\that you told nio . :the PA.,. I will -. .40011 .linOro • • . . pardon your wild and foolish'acts. • You de. servo to be punished.' If once more you play such a prank,l shall be inexorable. Nothing will a ve ydn. I must know morn exactly tthe affair ofDuke Herminn. 'Of what' you said of .theimitiisters of pollee and finances. I expect also proofs: Go now and : give a present to the young gardener; He behaved much more-wisely;in your Mantle, . than you did in his,' The Prince left tlip,,King, and ordered Phillip to go with hiM to his palace. Phil lip had there to repeat every word- Ire bad heard or said at the ball. Jn patted him on the shoulder, and sat r 'Listen, Phillip ; you are a - good•aridnadeated fellow. What you said in my name to the chamber lain, Pilzou, Countess Bonau, the marshall and his wife, Col. Cold, the minister of fin ances, and the otlinTrs, I find quite reasona ble, and wilt consider it as if I had said it I myself, and act accordingly. But you must acknowledge the verses which I sang in your name as watchman. You will lose your employment l of watchman, for your punishment. As a compensation I offer yilu the situation of my gardener: I pin you at the head of the gardens of my own chateaus, and 1 will pay you immediately - five thou sand florins fur the draft of the Chamberlain. Presidents Message. Fellow.citizens of the Senate and House of .Representativce : Sixty years have, elapsed since the establish. ment of this Government, and the Congress of the United States again assembles, to legislate for an empire of freemen. The predictions of evil prophets who formerly pretended to foretell the downfall of our institutions, are now re membered only to be derided, and the United States of America; at this moment present to the world the most stable and permanent Govern- ment on earth. Such is the result of the labors of those who have gone before us. On Congress will evi dently depend the future maintenance of our system of free goVernnient, and the transmission of it, unimpaired to posterity. We are at peace with all the nations of the world, and seek to maintain our cherished rela tions of amity with them. During the past year; we have been blessed, by a kind Providence, with as abundance of the fruits of the earth; and, although the destroying angel for a time, visited extensive portions of our territory with the ravages of a dreadful pestilence.yet, the Al mighty has at length deigned to stay his hand, and to restore the inestimable blessing of gener al health to a people who have acknowledged his power, deprecated his wrath, and implored his merciful protection. While enjoying the benefits of an amicable in tercourse with foreign nations, we have nut been insensible to the distraction and wars which have prevailed in other parts of the world. It is a proper theme of thanksgiving to Him who rules the destinies of nations, that we have been able to maintain, amidst all these contests, an independent and neutral position towards all be ' li , erent powers. Our relations with great Britain are of the most friendly character. In consequence (if, the alterations in the British navigation acts,,,lNt ish ve s sels, from British and other foreign ports, wilquntler our existing lawsdafier the first , day of January next, he admitted to entry, in our ports, with cargoes of the growth,'manufacture, or production of any part of the world, on the same terms, as to duties, imposts, sod charges, as vessels of the United : States with their car goet ;• and our - vessels will, be admitted to the same advantages in Bri tish ports, entering there in on the same terms as British vessels. Should no order in conned disturb this legislative ar rangement, the late act in the British Parliament, by which Great Bejtian is brought within the terms proposed byPle act of Congress of the Ist of March, 1817, it is hoped, will be productive of benefit to both countries. A - slight interruption of diplomatic intercourse which occured between this government and France, I am happy to say, has been terminated, and our Minister there has been received. It is therefore unnecessary to refer, now, to the cir cumstances which led to that interruption. I need not express to you the sincere satisfaction with which we shall hail the arrival of another Envoy extraordinary, and Minister Plenipoten tiary from a sister republic, to which we have so long been, and still remain bound by the strongest ties of amity. Shortly after I had entered upon the discharge of the executive duties, I was apprised that a war -steamer, belonging to the German Empire, was being fitted out in the harbor of New York, with the aid of some of our naval officers, ren dered under the permission of the late Secretary of the Navy. This permission was granted du ring an armistice between that empire and the Kingdom of Denmark, which had been engaged in the Schleswig Holstein war. Apprehensive that this act of intervention, on our part, might be viewed as a violatiort"of our neutral obligations, incurred by treaty with Den mark, and of the provisions of the act of Con gress of the 20th of April, 1818, I directed that no further aid should be rendered by any agent or officer of the navy; and I instructed the Sec retary of State to apprise the Minister of the German empire accredited to this Government, of my, determination to execute the law of the United. States, and to maintain the faith of trea ties with all 'nations': The correspondence. which ensued' between the Department of State and the Minister of the German Empire, is here with laid before you. The execution Of the law and the observance of the treaty were deemed by the to be due to the honor of the country, as well as to the sacred obligations of the :Constitution. I shall not fail to pursue the same course, should a similar case arise with any other nation. Ha ving avowed tha' opinion, on taking the oath of office, that, in disputes between conflicting for eign goiernmenti, it is our interest, not less than our duty, to temain strictly neutral, I shall not abandon it. You will perceive, from the cor respondence submitted to you, in connection with this subject, that the course adopted in this case has been properly regarded by the beliger ant powers interested. Although a Minister of the United States to the German empire was appointed by may predeces sor in 'August, Ma, and has, for a long time, been in attetidaneLe, at Frankfort.on.the-Maine; and although a I:Mister appointed to represent that Empire. was received and accredited here, I .yet no such government as that of the German Empire has been definitely constituted. Mr. Donelson, our representative at Frankfort, re- Mained there several months,in the expectation that a union of the German States,' under one constitution or form of government, might, at length be. organized. .It is believed, by those well acquainted, with the existing. relations be tween Prussia and;he states of Germany. 'that no - such union. can be permanently established without ; her oo.op ixtion. In the event of the Carnation of silch 4 'union, and the organization i ., Of ii cearal'poiver. in lierniany t eiff. - Which - she would forth Is part 4 would become - necessary So withdraw our , ister at Berlin: -but ;slide Prussia exists ati Bodependent kingdom and di plornatiefelations hie maintained with her, there 'can be no necessitg 'for the continuance of the :Wl:slots to,Prestitfokt I have, therefore, recall. 'ed Mr. Doselsoa. And directed the archives of the 'epilog, st 'detract. to be, transferred to the American native itt Perlin.. • .-. Having been apprised that a considerable num ber of adventurers were engaged in fitting out a military expedition, within the. United States, against a foreign country-; and believing, from the beat information I cduld obtain, that it was destined to invade the island of-Cuba. I deed'. ed it due,to the friendly relations .existing be. , •tween the. United States and Spain, to the laws of the United 'States, and, above all, to the Amer ican horror,to exert the lawful authority of this government in suppressing the expedition and preventing the invasion. To this end,l issued a proclamation, enjoining it - upon the officers of the United S tates, civil and military to use all lawful means within their power. A copy of that proclamation is herewith subnitted. The expe dition has been suppressed. So long as the act of Con g ress, or the 20th of April, 1818, which owes its existence to the law of nations and to the policy of Washington himself, shall remain on our statute boolc,l uphold it to be the duty tf the Executive lant'olly to obey its injunctions . While this expedition was in progress, I was informed that a fore'ign'er, who claimed our pro tection. had been clandestinely, and, as was supposed, forcibly tarried ;MT in a vessel from New Orleans to tlib island of Cuba. I immedi• ately caused such steps to be taken as I thought nezessary, in case the information I had receiv ed should prove correct, to vindicate the honor of the ;country, and the tight of every person seeking an asylnm on our sail in the protection of our laws. 'file person alleged to have been abducted was priimptly restored, and the circum stances of the case are now about to undergo investigation before ajudicial tribunal. I would respectfully suggest, that although the crime charged to have been committed in this case is held odious as being in conflict with our opinions on the subject of national sovereignty and per• sonal freedom, there is no prohibition of it, or punishment for it, provided in any act of Con gress. The expediency of supplying this defect in one criminal code is therefore recommended to your consideration. have scrupuitutsly avoided any interference in the wars and contentions which have recent- ly distracted Europe. During the late conflict bet..veert Austria and Hungary, there seemed to be a prospect that the latter might become an independent nation.- However faint that prospect at the time appear ed, I thought it my duty, in accordance with the general sentiment of the American people, who deeply sympathized with the Magyar patriots, to stand prepared, upon the contingency of the es tablishment by her of a permanent government, to be the first to welcome indeoendent Hungary into the family of nations. Fur this purpose, I invested an agent, then in Europe, with power to declare our willingness promptly t recognise her independence, in the event of her ability to sustatn it. The powerful intervention or Rus sia, in the contest, extinguished the hopes of the struggling Magyars. The United States did not, at any time, interfere in the contest; but the feel ings of the nation were strongly enlisted in the cause, and by the suffering s of a brave people, who had made a gallant th ough unsuccessful ef fort to be free. Our claims upon Portugal have been, during the past year, prosectred with renewed vigor, and it has been my object to employ every effort of honorable diplomacy to procure their adjust. ment. Our late Charge d'Affairs at Lisbon, the Hon. George W. Hopkins, made able Al en ergetic, but unsuccessful efforts to settle these unpleasant matters of controversy, and to obtain indemnity. for the wrongs which were the sub jects of complaint. Our present charge d'AiTairs at the court will, also, bring to the prosecution of these claims ability and zeal. The revolutionary and distracted condition of Portugal, in past times has been represented as one of the leading causes of, her delay -in indemnifying our suffer ing citizens. But j• must now say, it is a matter of profound regret that these claims have nor yet been settled. The omission of Poi - tugal to do justice to the American claimants has now as sumed a character so grave and serious, that I shall shortly make it the subject of a special message to Congress with a view to such ulti mate action as its wisdom and patriotism may suggest. With Russia, Austria, Prussia, Sweden, Den mark, Belgium, the Netherlands, and the Italian States, we still maintain our accustomed emica ble relations. During the recent revolutions in the Papal States, our Charge d'Affairs at Rome has been unable to present his letter of credence, which, indeed, he wax directed by my predecessor to withhold until he should receive further orders. Finch was the unsettled condition of things in those States, that it was not deemed expedient to give him any instructions on the subject of pre senting his credential letter different from those ' with which he had been furnished by the late ad- • ministration, until the 25th of June last ; when in consequence of the watit.of accurate information of the exact state of things, at that distance from us, was instructed to exercise his awn discre tion in presenting himself to the existing gov ernment, if, in his judgment, sufficiently stable; or if not, to await further events. Since that pe riod. Rome has undergone another revolution, and he abides the establishment of a government sufficiently permanent to justify him in opening diplomatic intercourse with it. With the Republic of Mexico, it is our true policy to cultivate the most friendly, relations.— Since the ratification of the treaty of Guadalupe Hidalgo, nothing has occurred of a serious char acter to disturb them. A faithful observance of the treaty, and a sincere respect for her rights, can not fail to secure the lasting confidence and friendship of the Republic. The message of my predecessor to the House of Representatives, of the Bth of Febuary last, communicating, in com pliance with a resolution of that body, a copy of a paper called a protocol, signed at Queretaro on the 30th of May. 1848, by the commissioners of the United States and the minister of foreign 'affairs of the Mexican government, having been a subject of correspondence between the Depart ment of State and the Envoy Extraordinary and Minister Plenipotentiary of that republic accre dited to this government, a transcript of that cor respondence is herewith submitted. The Commissioner on the Part of the United States for making the boundary between the two republics, though delayed in reaching San Die go by unforseen obstacles, arrived at that Place within a short period after the time required 'by the treaty, and was there joined by the Commiss foner on the part of Mexico. They entered upon their duties; and, at the date of the latest intelli gence from that quarter, some progress had been made in the survey. The expenses incident to the organization of the commission, and to its conveyance to the point where, its operations were to begin, have so much reduced the furid• appropriated by Congress, that a further sum to cover the charges which must be incurred dur ing the present fiscal year, will be necessary.— The great length of frontier along which the boundary extends, the nature of the adjacent ter ritory, and the difficulty of obtaining supplies, ex cept at or near the eitremes of the line render it also indispensible that a liberal provision should be made to meet the necessary charges iloribg• the decal year 'ending on' the 30th of June 1831. faccordingly recommend this sub ject to your attention. • . - In the adjustment of the claims of American citizens on - Mexicp, provided for by thelatetreaty the employment of counsel, on the - . part of the government, may become important 'for the pur 'pose of assisting the commissioners in protect ing the lotereisth of the United States. I.recom. mend this subject iotbe early and fever - able con• iideration of Congress. • ; Complatnts have been made in .regard : to the inefficiency of the meant; prOvided by. the ,gov ernment of New Grenada for transporting. the United States ttdross the lithttitts of Pana- ma, pursuant 'to dkr Postal convention with that republic, of the 6th erf Starch 1844. Our Charge d'Afiairs at Bogota has . tiven &reeled to make such representations to the government of New -Grenada as will, it- is hoped, lead to a prompt removal of this cause of complaint. The sanguinary civil war with evhich the Re pliblic of Venezuela has for some tithe past been ravaged, has been brought to a close. 4n its pro gress, the rights of ortie df dur citizens resident OT tradingthere have been Violated. Therestora- tion.of tirder will afford the Venezulan govern. meth an opportunity, to examine and redress these grievances and others of longer standing, which our rerre.sentatiires at Caraccas have, hitherto ineffecfnally 'urged upon the attention of that gciv ernMenl, • The extension of are coasst of the United States on the Pacific, and the unexampled rapidity with which the innabitants of California. especially, ate irrereaSin , r in numbers, have imparted new coosequentelro our relations with the other coun tries whose 'territories border upon that ocean. It is probable That the intercourse between those countries acid ottr possessions in that eientter, particularly With the ftepublic of Chili, will be. come extensive and mutually advantageous in proportion as 'California and Oregon Bha II in crease in population and wealth. ft is desirable therefore, that This Government should do every thing in its pOWCT to foster and strengthen its re -laliOns With thotretates, .and that the spirit of amity between us should be mutual and cordial. I recommend the observance of the same course towards all other American States. the United States stands as the great American pow er to which, as their natural alley and friend, they Will alWays be disposed, first to look for mediation and assistance, in the event of any collision between them and ant European nation. As such, we may often kindly mediate in their behalf, without entangling ourselves in foreign wars or unnecessary controversies. Whenever the faith of our treaties width any of them shall require our interference, we must neeessatily in- interpose. A convention has been negotiated with Braxil, vprotiding For the satisfaction of American claims on that goVernment, and will be submitted to the Renate. tiince the last session of Congress we have received an Envoy Extraordinary and Minister Plenipotentiury from that empire, and our relations with it arc founded. upon the most amicable understanding. Your attention is earnestly invited to an amendment of our existing laws relating to the African slave trade, with a view to the efficient suppression of that barbarous traffic. It is not to be denied, that this trade is still, in part, car- ried on by means of vessels built in the United States, and owned or navigated by some of our citizens. The correspondence between the De partnient of State and the Minister and Consul of the United States at Rio Janeiro, which has from time to dine been laid before Congress, represents that it is a customary device to evade the, penalties of our laws by means of sea-letters. Vessels sold in Brazil, when pro vided with such papers by the Consul, instead of returning to the United States, for a new register, proceed, at (ewe to the coast of Afri ca, for the purpose of obtaining cargoes of slaves. Aluch additional information, of the same character, has recently been transmitted to the Department of State. It has not been considered the policy of our laws to subject an American citizen, who, in a foreign country, purchases a vessel built in the United States, to the inconvenience of sending her home for a now register, before permitting her to proceed on a voyage. Any alteration of the laws, which might have a tendency to impede the free trans fer of property in vessels between our citizens, or the free navigation of those vessels between different parts of the world, when employed in lawful commerce, shquld be well and cau r tionsly considered ; but I trust that your wis dom wilt devise a method by which our gen eral policy, Iti this repect, may be preserved, and at the same time the abuse of our flag, by means of sea-letters, in the manner indicated, may be prevented. Having ascertained that there is no prospect of the reunion of the live states of Central America, which formerly composed the repub lic of that name, we have separately negotia ted with some of them treaties of amity and Commerce, which will be laid before the Senate. A contract having been concluded with the . State of Nicaragua, by a company composed of American citizens, for the purpose of con structing a ship canal, through the territory of that State, to connect the Atlantic and Pacific oceans, I have directed the negotiation of a treaty with Nicaragua, pledging both govern ments to protect those who shall engage in and perfect the work. All other nations are invi ted by the state ofNicaragua ' to enter into the same treaty stipulations with her; and the ben etit to be derived by each from such an ar ranaement, will be the protection of this great interroceanic comrnunicatioti against any ['ow -1 er which might seek to obstruct it, or to mon opolize its advantages. All states, entering into such a treaty, will enjoy the right of pas sage through the canal on payment of the same tolls. The work, if constructed under these guar antees, will become a bond of pence, instead of a subject of contention and strife, bet Ween tl:e nations of the earth. Should the great maritime States of Europe consent to this ar rangetnent, (and we have no reason to sup pose that a proposition so fair and honorable will be opposed by any,) the energies of their people and ours will co-operate in promoting the success of the enterprise.. I do not recom mend any appropriation from the - National treasury for this purpose, nor do I believe that such an appropriation is necessary. Private enterprise, if properly protected, willeomplete the work, should it prove to be feasible. The parties who have procured the charier from Ni caragua, for its construction, desire no assist ance from this Government beyond its protec tion : and they profess that, having examined the proposed line of communication, they will be ready to commence the undertaking when ever that protection shall be extended to them. Should there appear to be reason, on examin ing the whole evidence, to entertain a serious doubt of the practicability of constructing such a canal, that - tloubt could be speedily solved by an actual exploration of the route: Should such a work be constructed, under the common protection of all nations,- for equal benefits to all, it would be neither just nor ex pedient that any treat maritime State should command the communication. The territory through which the canal may be opened ought to be freed from the claims of any foreign pow-. er. No such power should occupy a pnaition that would enable it hereafter to exercise so controlling an influence'ever the commerce of the world, or to obstruct a highway which ought to be dedicated to theeommon uses of mankind. Tho routes across the Isthmas v at Tohaunte pee and Panama, are alio worthy. of our -seri ous consideration. They did not fail to engage the attention of my predecessors. The nego tiator of the treaty of Guadeloupe Hidalgo was instructed to offer a very largo sum of money for the right of transit across the lathmuseof Tetiatuitepec. The Mexican governrnent did not tureedeto theeproposition.forrtfre purchase of the right,Of way, p ro bably beeztase if had ready contracted w ith private mdividurdiforthe oonseetion . ot a paseag,e front, the gattsactialco river to Tehattatepec.. , , . . I shall not renew any proposition to purchase for money,' a tight which ought to be equally secured to all nations, on payment of a reason able !oil to the owners of the l'hiproveinent, Who would doubtless, be well contented that Compensation and the, guarantees or the imaritime States of the world, in sepaiale treat ies negotiated with. Mexico, binding herand them to protect those who stbould'ethitswriet , the work. tinch.guirentees would do more to .se cure the ettinpletiola of 'the communication through the territory of Mexico, than any other reasonable consideration that could be offered and us Mexico herself would be the greatest ginner by the opening of thiti communication between the Gulf and the Pacific ocean ; it is presented that she would not hesitate to yield her ail!, in the manner proposed,to accomplish an improvement 80 important to her own best interests. We have reason to hope that the proposed railroad across the Isthmus at Panama will be successfully- constructed, under the protection of the late treaty with New 'Grenada, ratified . and exchanged by my preetteesser on the 10th day of June, 1848, which guarantees the per fect neutrality of the isthmes, and the rights of sovereignty and property of New Grenada over that territory, "with a view that the free transit from ocean to Ocean may not be interrupted or embarrassed" during ttre existence of the treaty. kt is IV& policy to encourage every practicable route across the Isthmus which connects North and South America, either by railroad 'or canal, which the energy and enterprise °of our citizens may induce them to complete, and I consider it obligatory upon me to adopt that policy, especially in con , sequence of the absolute necessity of facilitat , int.! intercourse with our possessions on the Pe- eific. The position of the Sandwich islands. with reference to the territory of the United States On the Pacific; the success of our persevering and benevolent citizens -who have repaired to that remote quarter in clitistenimitig the natives and inducing them to adopt a system of pm ernmerd and talks sailed to their capacity and wants; and the use made by our numerous whale ships of the harbors ai rl the islands as places of resort for obtaining refreshments and repairs, all combine to render their destiny pe culiarly interesting to us. It is our duty to encourage the, authoritiCs of those islands in their efforts to improve and elevate the mural and political conAtion of those inhabitants; and we should &Aire' reatonable allowances for the difficulties inseparable from this task. We desire that the islands may maintain their in dependence, and that other nations should con cur with us in this sentiment. We could in no event be indifferent to their passing under the dominitht of any other power. The principal commercial States have in this a common in terest, and it is to be hoped that no one of them will attempt to interpose obstacles to the entire independence of the islands. The receipts into the treasury for the fiscal year ending on the thirtieth of June last were, in cash, forty-eight million eight 'htindred and thirty thousand ninety-seven dollars and. fifty cents, ($48,830,097,50 ; ) and in Treasury awes funded, ten millions eight hundred and thirty three thousand dollars, ($10,833,000.) making an aggregate of fifty - mine millions six hundred and sixty-three thou-and ninety-seism dollars and filly cents, (?53,663,097 50.) and the ex pentliimes, for the same time nem, in vsh, forty six millions seven hundred and ninety eight thousand six hundred and sixty-seven dollars and eighty-twocents.) 846,798,087.82,) and in Treasury notes funded, ten millions . eight -hundred and iltirty.three thousand dollars, (310,833.000.) making an aggregate of fifty seven millions six hundred and thirty-one thousand six .7hundred and sixty-seven dol lars and eighty-two cents, ($57,631,067 : 82 ) The accounts and estimates which will be submitted to Congress in the report of the Sec retary of the Treasury, show that there will probably be a deficit, occasioned by the expert -,es of the Mexican war and treaty, on the first day of July next, of five millions e ight hun dred and twenty-one dollars and sixty-six cents, (55,828,121,6 G.) and on the Ist del elf July 1851, of tell millions five hundred and forty seven thousand and ninety-two dollars and, seventy-three cents, (510.547,092,73.) making in the whole a probable deficit, to be provided for, of sixteen millions three hundred and F•CV. enty-five - thousund two hundred arid fourteen dollars arid thirty-nine cents, (516,375 214,39.) The extraordinary expenses of the war with Mexico. and the purchase of California and New Mexico, exceed ill amount this deficit, together with the loans heretofore made for those objects. I therefore recommend that au• thority be given to borrow whatever sum may be necessary to cover that deficit. I - recent. mend the observance of strict economy in the appropriation and expenditure of the public money. I recommend a revision of the existing tariti, and its adjustment on a basis which may aug. tnent the revenue. Ido not doubt the right or duty . el Congress to encourage domestic indus try, which is the g reat source of 'tenoned us well as individual wealth and prosperity. I look to the wisdom and patriotism of Congress for the adoption of a system which may place home labor, at last, on a sure and permanent footing, and, by due encourageMent of manu factures, give a new and increased stimulus to agriculture, and promote the developement of Our vast resources antithe extension of our com merce. Believing that to the attainment 'of these ends (as well as the necessary augmen tation of the revenue and tine prevention of frauds) a system of specific duties is best adapted. I strongly recommend to Congress the adoption of that system, fixing the defies at rates high enough to afford substantial and sufficient encouragement to our own industry : and at the same 'mig so adjusted as to insure. stability. The question of the Continuance of the Sub treasery system is respeetfully submitted to the wisdom of Congress. If continued, import ant modifications of it appear to be neces sary. Forfurther details and views of the above, and other matters connected with commerce, the finances, and revenue, I refer to the report of the Seeretaiy of the Treasury. No direct atd hasbeengtven by the General, Government loth° improvement of agriculture except by the expenditure of small sums for the collection and publication of agricultural statistics,. atd for .some chemical analyses, which have been, thus far, paid out of the pa tent fund. This aid , is, in my.opinion wholly 1 inadl i urate. .To.give to this leading branch , of Amencan industry.the encouragement which it merits, I respectfully recommend the estab lishment of an Agricultural Ilureatf, to be con nected with the 'l)epartment of the Interior. To elevate the social condition of the agricul turist; to increase his 0408PerilYr and to extend his moans :of usefulness to Ins country?, 'by multiplying his sources: of information, should be the study of statesm a n, and a r nrituary . object with every legislator. , - . provided. .: 1 .No ciVil geverninent havin.f been v by Congress for California,. the ,people of That territory linpelledly . the:necessity of their po litical coudition,-` recently met in.couventioni forthst,pprpests of. Jorming A constitution and State' goveninteni' . which the Weld ailvices give Yoe reason to suppose, has been aecoms 'Alerted - and it is believed they will shortly apply foithe ailmietsion of California into the , Unioo,its a etiveirsiglyst'ate. Should such be the ease; and ehodld their cionaiintion be conform able to the triiiptit4f#iii. of the cmisffintion of the United :Statett,,l4relmom metal their applica tion:to thelavorableermsideration of Congress. :The people. of.emr. Mexico will also, a is believed, at nir..v_eri distant period present themselves for admission intothe Union. he paratory to the adraission of California and New Mexico, the people of each will have in stituted far thernee/ves a republican form of government, 'laying its foundational,' such • principles, and uri!anising its powers M. fault form, as to them :Lill seem mostislikely to ef fect their safety arid happisiess,' awaiting their maim, all esarses of unea siness may be avoided. MI d cenfiderice and kitid feeling preserved. With a view of maintaining the harmony and trangoility so dear to all, wu should abstain from the intro ductiou of those eft icing topies•al a sectional character which- hare hitherto r tiac:d pain ful appreheutiirms in the poblse mind-; and I repeat the solemn warning of the first and most illustrious of my predecessors sphist frmthdi ing "any ground for characterizing parities by geographical discriminations.' A collector has been appointed t [fan filo% risen, under the act of Congress extending MA revenue laws over California; and measures have been taken to organise the cuntom-hon ses at that and the other ports mentioned in the act, at the earliest 'period practicable. The col lector proceeded overland, and advices have not yet been received of his arrival at San Fran cisco. Meanwhile it is under Stood that du; customs have continued to tie eollected there by officers acting under mithary authority, as they were during the adminstration of my pre decessor. (t will, I think, be expedient to con firm the collections thus made, mid direct the avails (after such allowances as C0111!1"Ct , S may think fit to authorize) to be expended within the territory, or to be paid him the Treasury, for the purpose of meeting appropriations for the improvllnieot pf its rivers and harbors. A party, engaged on the coast survey, was dispatched to Oregon in January last. According to the latest advices, they bad not left California; and directions have been given to them, as soon as they shall have fixed on the sites of the two lighthouses and the buoys authorised to be constructed and placed in Oregon, to proceed without delay to make reconnoissances of the most impor tant points on the coast of California - , and especially to examine and determine on sites for lighthouses on that coast, the spee dy erection of which is urgently demanded by our rapidly increasing commerce. I have transferred the Indian Agenbies from Upper Missouri and Council Sluff; to Santa Fe and Snit Lake ; and have caused to be appointed sub-agents in the valleys of the Gila, the Sacramento, and San Joaquin Rivers. Still further legal provisions will be necessary to the effective and successful extension of our system of Indian inter course over the new Territories. I reccommend• the establishment of a branch mint in California. as it tt ill, in my opinion afford important facilities to those engaged in mining, as well us to the Government in the disposition of the miner al lands. I also recommend that commissions be organized by Congress, to examine and di.- cide upon the validity of the presetitsubsi&- ting land titles in California and New :Mex ico: and that provision be made for the L.,- tablishment of offices of Surveyor Generdl in New Mexico, California, and Oregon.. and for the surveying arid kluging Mtn market the public lands in those Territories. 'Those lands, remote in position, and diffi cult of access, ought to be disposed of on terms liberal to all, but especially 'favorable to the early emigrants. In order at the situation and character of the principal mineral deposites in Cali fornia may be ascertained, I reccommend that a geological and mineralogical explora tion be connected with the linear surveys. , and that the mineral lands be diVided into small lots suitable for mining, and be dis posed of, by sale or lease, so as to give our citizens an opportunity of procuring.a per manent right of property in the soil. This would seem to be as important to the success of mining as of agricultural. pursuits: The great mineral . wealth of California, and the advantages, which its ports.. And harbors, and those of Oregon.afford,to coin merce, especially with the islandsof•the Pacific and Indian oceans,and the populous regions of Eastern Asia, make it certain that there will arise, id a few yiers,, large and prosperous communities : on: our west ern coast. It, therefore becomes : important that a line of communication, the best and most expeditiOns, which the.nature of .the country will admit, should be 'opened, with in the, territory of the. United States, front the navigable waters of the Allende or the iSulfof Mexico, to the Pacific. Opinion. as elicited and expressed by two large and respectable conventions, lately assembled at St. Louis and Memphis, points toe rail- . road' as if practicable; will best . . meet the' wishes, and wants of the country.... • But While' this, if in successful operation, would be a work of great national „irnri?r lance, and of a value to the eauatiy,,, , whieh it would'be difficult ,to estimate , it:ought al-, so to be regarded as an. undertaking..of.east magnitude and., expense, must, if it be, indeed, practicable, enCeun-• ter many difficulties in lei constigatii*and use. Therefore,. to'avoid failur,s4intli'dis appointritent f . to enable Congregisto . :iridgi. whether; in the condition of •thrs:, country, through which it must pass, !the cork. be feasible, and if it.be (oupd, should he undertaken riska,poimitliropm A_. • merit or Jell to individual enterprise; at ,a the latter., alternative, -what,Day. o n u tet t .. to I rrpcitniittdarrla6. it by ..:iptlre..ely.6l4Mlll4,arnry...:. ineasure, a careful.yeconneistr A ce. °Atha several proposed routes.bie sc s ens*iefts, and a report,tis to the:weal( king such a road, with art ~ : . em i newa : 0 1 4 k, • cost of its construction and I , :ssepaitir.L- , 7t4 , For further' A g, eWB or k ' UMW in " utters cortneetedJ- - wit', Udine DePartinent4- port of the Secretary •; t i i iiifo t osiii .c o, .! recommend -c:, Astir apPYtiPthittilftii.‘l4 l egintiou pg• thu• AkVAllitt I bilideirririiiii•i!- 'runts' .winct i i k„.• & W ait ! I Iv gurrostm_ also fq.tho ,cor!, jjanririn'ofi,thist fob irk4cl;