PRESIDENT'S - MESSAGE. Allow-citizens of the Senate and of the House of Representatives: The constitution of the United States provides that Congress shall assemble annually on the first Monday of December, and it has been usual for the President to make no communication of n public character to the Senate and House of Representatives until advised of their readiness to receive it. I have deferred to this usage until the close of the first month of the session, but my convictions of duty will not permit me longer to postpone the discharge of the obligation en joined by the constitution upon the -President "to give to the Congress information of the state of the Union, and recommend to their con sideration such measures as he shall judge ne cessary and expedient." It is matter of congratulation that the Repub lic is tranquilly advancing in a career of pros perity and peace. roulaax RELATIONS.-CENTRAL AMERICA Whilst relations of amity contimze to exist be tween the United States and all foreign powers, with some of them grave questions are depend • ing, which may require the consideration of Congress. • Of such questions, the most important is that which has arisen out of the negotiations with Great Britain in reference to Central America. By the convention concluded between the two e 19th of April, 1850, both parties covenantee, --..4l‘a r will ever" 4 , occupy, or fortify, or colonize, crr exercise any dominion over Nicaragua, Costa Rica, the Mosquito coast, or any part of Central America." It was the undoubted understanding of the United States, in making this treaty, that all the present States of the former republic of Central America, and the entire territory of each, would thenceforth enjoy complete independence; and that both contracting parties engaged equally, and to.the same extent, for the present and for the future, that if either then had any claim of tight in Central America, such claim, and all occupation or authority under it, were unreserv edly relinquished by the stipulations of the con vention; and that no dominion was thereafter to be exercised or assumed in any part of Cen tral America, by. Great Britain or the United States. - This government consented to restrictions in regard to a region of country, wherein we had specific and peculiar interests, only. upon the conviction that the like restrictions were in the same sense obligatory on Great Britain. But for • this understanding of the force and effect of the convention, it would never have been concluded . by us. • So clear was this understanding on the part of the United States, that, in correspondence cotemporaneous with the ratification of the con vention; it was distinctly expressed, that the mutual covenants of -non-occupation were not intended to apply to the British establishment at the Balize. This qualification is to be ascribed to the fact, that, in virtue of successive treaties with previous sovereigns of the country, Great Britain had obtained a concession of the right to cut mahogany or dye-woods at the Balize, but with positive exclusion of all domain or sove reignty; and thus it confirms the natural con struction and understood import of the treaty as to all the rest of the region to which the stipu lations 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 exorcise or assertion of large authority in all that part of Central America commonly called 'the Mosquito coast, and covering the entire length of 'the State of Nicaragua, and a part of Costa Rica ; that she regarded the Balize as her abiolute domain, and was gradually extending its limits at the expense of the State of Hondu ras; and that she had formally colonized a con siderable insular group known as the Bay Isl ands, and-belonging, of right, to that State. All these acts or pretensions of Great Britain, being contrary to the rights of the States of Cen tral America, and to the manifest tenor of her stipulations with the United States, as under stood by this governnaeut, have been made the subject of negotiation through the American Minister in London. I transmit herewith the in structions to him on the-subject, and the corres pondence between him and the British Secretary for For.ign Affairs, by which you will perceive that the two governments differ widely and irre concileably as to the construction of the conven tion, and its effect on their respective relations to Central America. Great Britain so construes the convention, as to maintain unchanged all her previous preten sions over the Mosquito coast, and in different parts of Central America. These pretensions, as to the - Mosquito coast., are founded on the as sumption of political relation between Great Bri tain and - the remnant of a tribe of Indians on the coast, entered into at a time when the whole country was a colonial possession of Spain. it cannot be successfully controverted, that, by the public law of Europe and America. no possible act of such Indians or their predecessors could confer on Great Britain any-political rights. Great Britain does not allege the assent of Spain as the origin of - her claims on the Mos quito coast. She has, on the contrary, by fe peated and successive treaties, renounced and relinquished all pretensions of her own, and re cognised the full and sovereign rights of Spain in the most unequivocal terms. Yet these pre tensions, so without solid foundation in the be ginning, and thus repeatedly abjured, were, at a recent period, revived by Great Britain against the Central American States, the legitimate suc cessors to all the ancient jurisdiction of Spain in that region. They were first applied only to a defined part of the coast of Nicaragua, after wards to the whole of its Atlantic coast, and lastly to a part of the coast of Costa Rica; and they are now reasserted to this extent, notwith at-nding engagements to the United States. On the easteru coast of Nicaragua and Costa Rica, tlie interference of treat Britain, though exerted at one time in the form of military,ocanr pation of the pcgt9f,,glan tipproprlate au -I.ll4ifiee the Central American States, is now ;presented by her as the rightful exercise of a protectorship over the Mosquito tribe of In dians. But the establishment at the Baliza, now reaching far beyond its treaty limits into the State of Honduras, and that of the Bay Islands, appertaining of right to the same State, are as distinctly colonial governments as those of Ja maica or Canada, and therefore contrary to the very latteras well as the spirit of the convention: with the United States, as it was at the time of ratification, and now is, understood by this gov ernment The interpretation which the British govern _xnent,,thus assertion and act, persists in as • character. While it "held - Sias all' mit' obligaz' Lions, it in a great measure releases Great Bri tain frOm those which constituted the conside ration of this government for entering into the convention. It is impossible, in my judgment, for the United States to acquiesce in such a con struction of the respective relations of the two governments to Central America. To a renewed call by this government upon Great Britain, to abide by, and carry into effect, the etipttlations of the convention according, to its obvious import, by withdrawing from the possession or colonization of portions of the Cen tral American States of Honduras, Nicaragua, and Costa Rica, the British government has at length replied. affirming that the operation of the treaty is prospective only, and did not re- quire Great Britain to abandon or contract any - possessions held by her in Central America at the date of its Conclusion. This reply substitutes s. partial: issue, in the place of the general one presented by tho Uni ted States. The British goverrunent passes over t he question of the rights of Great Britain, real or supposed, in Cent' al America, and assumes that she had such rights at tho date of the treaty, and that those rights comprehended the protectorship of the Mosquito Indians, the ex tended jurisdiction and Emits of the Belize, and the colony of the Bay Isi ,nds, and thereupon proceeds ley implication to infer, that, if the stipulations of the treaty be merely future in eff ec t, Great Britain may still continue to hold the contested portions of Central America. The United States cannot admit either the inference or the premises. We steadily deny, that, at the ddto of the treaty, Great Britain had tiny pos sessions there, other than the limited and pecu liar establishment at the 13alize, and maintain that, if she had any, they were surrendered by the convention. This government, recognizing the obligations of the treaty, has of course desired to see it ex ecuted in good faith by both parties, 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 create for us relations to the Central American States, different from those of any government of Eu rope. The British government, in its last communi cation, although well knowing the views of the 'United States, still declares that it sees no rea son why a conciliatory spirit may not enable the two governments to overcome all obstacles to a satisfactory adjustment of the subject. Assured of the correctness of the construction of the treaty constantly adhered to by this gov ernment, and resolved to insist on the rights of the United States, yet actuated also by the same desire, which is avowed by the British govern ment, to remove all causes of serious misunder standing between two nations associated by-so many ties of interest and kindred, it has appear ed to me proper not to consider an amicable so lution 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 therefore practically null, so far as regards our rights, this international difficulty cannot long remain undetermined, without involving in seriona 44..1- lExr - "-.-- friendly relations, which it is the inte ' rest as well as the duty or tooth maul/tries to che rish and preserve. It will afford me sincere gratification', if future efforts shall result in the success anticipated heretofore with more confi dence than the aspect of the case permits me now to entertain. ItgCRtUTMENT One other subject of discussion between the United States and Great Britain has grown out of the attempt, which the exigencies of the war in which she is engaged with Russia induced 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, occur among the great powers of the world. Per forming all the duties of neutrality towards the respective belligerent states, we may reasonably expect them not to interfere with oar lawful en joyment of its benefits. Notwithstanding the existence of such hostilities, our citizens retain the individual right to continue all their accus tomed pursuits, by land or by sea, at home or abroad, subject only to such restrictions in this relation as the laws of war, the usage of na tions, or special treaties, may impose and-it is our sovereign right that our territory and juris diction shall not be invaded by either of the bel ligerent parties, for the transit of their armies, the operation of their fleets, the levy of troops for their service, the fitting out of cruisers by or against either, or any other act or incident of war. And these undeniable rights of neutrality, individual or national, the United States will under no circumstances surrender. In pursuance of this policy, the laws- of the 'United States do not forbid their citizens to sell to either of the belligerent powers articles con traband of war, or to take munitions of war or soldiers on board their private ships for trans portation; and although, in so doing,•the indi vidual citizen exposes his property or person to some of the hazards of war, his acts do not in volve any breach of national neutrality, nor of themselves implicate the government. Thus, dui ing the progress of the present war in Eu rope, our citizens have, without national res ponsibility therefor, sold gunpowder and arms to all buyers, regardless of the destination of those articl-s. Our crxerchantrnen have been, and still continue to be, largely employed by Great Britain and by Franca, in transporting troops, provisions, and munitions of war to the principal seat of military operations, and in bringing home their sick and wounded soldiers ; but such use of our mercantile marine is not interdicted either by the international, or by our municipal law, and therefore does not compromit our neutral relations with Russia. But our municipal law, in accordance with the law of nations, -peremptorily forbids, not only foreigners, but our own citizens, to fit out, within the limits of the United States, a vessel to commit hostilities against any state with which the United Stateß are at peace, or to in crease the force of any foreign armed vessel in tended for such hostilities against a friendly 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 ports of this country to depredate on the property of the other, all such fears have proved to be utterly groundless. Our citizens have been withheld ,froth any such act or purpose by good faith.and by respect for the law. While the laws of the Union are thus peremp tory in their prohibition of the equipment or armament of bblligerent cruisers in our ports, they provide not less absolutely that no person shall, within the territory or jurisdiction of the United States, enlist or enter himself, or hire or retain another person to enlist or enter himself, or to go beyond the limits or jurisdiction of the United States with intent to be enlisted or en tered, in the service of any foreign state, either as a soldier, or as a marine or seaman on board of any vessel-of-war, letter of marque, or pri vateer. And these enactments are also in strict conformity with the law of nations, which de clares, that no state has the right to raise troops for land or sea service in another state without its consent, and that, whether forbidden by the municipal law or not, the very attempt to d) it, without such co:.sent, is an attack on the na tional sovereignty. Such being the plate rights and the mon;01- pal law of the United States, to soltaitua4k— , - - 7 the subject was entwel•-i-ne - British Parliament missed an act to provide for the enlistment of foreigners in the military service of Great Bri tain. 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 mat ter of surprise, therefore, to find, subsequently, that the engagement of' persons within the Uni ted States to proceed to Halifax, in the British province of Nova Scotia, and there enlist in the service of Great Britain, was going on eaten sb,ely, with little or no disguise. Ordinary legal steps were immediately taken to arrest and punish parties concerned, and so put an end to acts infringing the municipal law tory to our sovereignty. Men own _and deroga , ile suitable . • __vv . represenbitions on the subject - were addressed TherenpOn it became known, by the admis sion of the British government itself, that the attempt to draw recruits from this country ori ginated with it, or at least had its approval and sanction; but it also appeared that the public agents engaged in it had "stringent instruction" not to violate the municipal law of the United States. It is difficult to understand how it amnid have been supposed that troops could be raised here by Great Britain, without violation of the muni cipal law. The unmistakable object of the law was to prevent every such act, which, if per formed, must be either in violation of the law, or in studied evasion of it; end, in either al ternative, the act done would be alike injurious to the sovereignty of the United States. In the meantime, the matter acquired addi tional importance by the recruitments in the United States not being discontinued, and the dis closure of the fact that they were prosecuted upon a systematic plan devised by official au thority; that recruiting rendezvous had been opened in our principal cities, and depots for the reception of recruits established on our fron tier; and the whole business conducted under the supervision and by the regular co-operation or British officers, civil and military, some in the North American provinces, and some in the United States. The complicity of those officers in an undertaking. which could only be accom plished by defying our laws, throwing suspicion over our attitude of neutrality, and disreg•irding out territorial rightg, is conclusively proved by the evidence elicited ou the trial of such of their agents as have been apprehended and con- Nieted. Some of the officers thus implicated are of high official position, and many of theft beyond our jurisdiction, so that legal proceed ings 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 upon with full knowledge of our laws and national policy, and conducted by responsible public func tionaries, impelled me to present the case to the Ilritish government, in order so secure, not only a cessation of the wrong, but its reparation. The subject is still unar discussion, the resul of which will be communicated to you in due time. I repeat the recommend 'lion submitted to the last Congress, that provision be made for the ap pointment of a commissioner, in connexion with Great Britain, to survey and establish the boun dary line, which divides the Territory of Wash ington from the contiguous British possessions. By reason of the extent and importance of the country in dispute, there has been imminent danger of collision between the subjects of Great Belden and the citizens of the United States, including their respective authorities in that quarter. The prospect of a speedy arrangement has contributed hitherto to induce on both sides forbearance to assert by force what each claims as a right. Continuance of delay on the part of the two governments to act in the matter will increase the dangers and difficulties of the con troversy. Misunderstanding exists as to the extent, character, and value of the posses Jory rights of the filltigAtOra May Cioanaysur aiall Lae property of the Pu4et's Sound Agricultural Company, re served in our treaty with, Great Britain relative to the Territory of Oregon. I have reason to believe that a cession of the rights of both com panies to the United States, which would be the readiest means of terminating all questions, can be obtained on reasonable terms ; and, with a view to this end, I present the subject to the at tention of Congress. The colony of Newfoundland, having enacted the laws required by the treaty of the sth of June, 1854, is now placed on the same footing, in respect to commercial intercourse with the United States, as the other British North Ameri can provinces. The commission, which that treaty contem plated,.far determining the rights of fishery in rivers and months of rivers on the coasts of the United States and the British North American provinces, has been- organized and has com menced its labor; to cmnpleto which there is needed 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 Sd of illarchlast, notice wa3 given to Denmark, on the 14th day of April, of the intention of this government to avail itself of the stipulation of the subsisting convention of friendship, commerce, and navigation between that Kingdom and the 'United States, whereby either party might, after ten years, terminate the same at the expiration of one year from the date of notice for that purpose. The considerations *which led me to call the attention of Congress to -that convention, and in duced the Senate to adopt the resolutions refer red to, still continv in full force. The conven tion contains an article, which, although it does not directly engage the United States to submit to the imposition of tolls on the vessels and car goes of Americans passing into or from the Bal tic sea, during the continuance of the treaty, yet may, by possibility, be construed as imply ing such submission. The exaction of those tolls not being justified by any principle of in ternational law, it became the right and the duty of the United States to relieve themselves from the implication of engagement on the subject, sc as to be perfectly free to act in the premises in such way as their public interests ana - norior shall 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 because 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 navigation of it as a privilege for which tribute may be imposed upon those who have occasion to use it. This government, on a former occasion not unlike the preaent, signalized its determination to maintain the freedom of the seas, and of the great natural channels of navigation. The Bar bary States had, for a long time, coerced the payment of tribute from all nations whose ships frequented the Mediterranean. To the last de mand of such payment made by them, the United States, although suffering less by their depreda tions than many other nations, returned the ex plicit answer, that we preferred war to tribute, and thus opened the way to the relief of the commerce of the world from an ignominious tax, so long submitted to by the more powerful na tions of Europe. If the manner of payment of the sound dues differ from that of the tribute formerly conceded to the Barbary States, still 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 those who were at that time able to obstruct the free and secure enjoyment of it, but who no longer pos seas that power. Denmark, while resisting our assertion of the of the Baltic Sound and Belts, has in dicated a readiness to make some new arrange ment on the subject, and has invited the govern meats interested, including the United States, to be represented in a convention to assemble for the purpose of receiving and considering a propo sition which she intends to submit, for the capi talization of the sound dues, and the distribu- ' tion of the sum to be paid as commutation among the governments, according to the re spective proportions of their maritime commerce to and from the Baltic. I have declined in be half of the United States to accept this invita tion, for the most cogent reasons. - irriptt - ill le 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 in other cases of naviga 7 tion and commercial freedom, as well as that of access to the Baltic, Above all, by the express terms of the proposition it is contemplated, that the coasideration of the sound dues shall be commingled witb, and made subordinate to, a matter wholly extraneous, the balance of power among the governments of Burope. While, however, rejecting this proposition, and insisting on the right of free transit into and from the Baltic, I have expressed to Den mark a willingness, on the part of the United States, to share liberally 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 tit. no.viisoilon of the 8,0t13:14 of Belts. I lay before you, herewith, sundry documents on the subject, in which my views are more fully disclosed. Should no satisfactory arrangement be soon concluded, I shall again call your atten tion to 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 they are - affected by the preten sions of Denmark: FICAN CB. I announce, with much gratification, that, since the adjournment of the lust Congress, the questibn, then existing between this Government and that of France, respecting the French cor sul at San Francisco, has been satisfactorily de termined, and that the relations of the two gov ernments continue to be of the most friendly nature. °Teuton A question, also, which has been pending for several. years between the United States and tho Kingdom of Greece, growing out of the seques tration, by public authorities of that country, of property belonging to the present American con sul at Athens, and which had been the subject of very earnest discussion heretofore, has re cently been settled to the satisfaction of the party interested, and of both governments. DEM With Spain, peaceful relations are still main tained, and some progress has been made in se curing the redress of wrongs complained of by this Government. Spain has not only disavowed and disapproved the conduct of the officers who illegally seized and detained the steamer Black Warrior at ITavana, but has also paid the sum clairned as indemnity for the losl thereby in flicted on citizens of the United States. In consequence of a destructive hurricane which visited Cuba in 1844, the supretne anther. , ity of that island issued a decree, permitting the importation, for the period of six months, of certain building materials and provisions, free of duty, but revoked It when about half the pe riod only had elapsed, to the injury of the citi zens of the United States, who bad proceeded to act on the faith of that decree. The Spanish government refused indemnification to the por deo aggrieved until recently, when it was as sented to, payment being promised to be made so soon as the amount due can be ascertained. Satisfaction claimed for the arrest and search of the steamer El Dorado has not yet been ac corded, but there is reason to believe that it will be, and that case, with others, continues to be urged on the attention of the Spanish Govern ment. Ido not abandon the hope of concluding with Spain some general arrangement, which, if it do not 'wholly prevent the recurrence of diffi culties in Cuba, will render them less frequent, and whenever they shall occur, facilitate their more spoedy settlement. MEXICO. The interposition of this government has been invoked by many of its citizens, on account of injuries done to their parsons and property, for which the Mexican republic is responsible. The unhappy situation of that country, for some time past, has not allowed its government to give due 00.0w*r.tiou to claims of private reparation, and has appeared to call for and justify some forbearance in such matters on the part of this government: l3ut, if the revolutionary move ments, which have lately occurred in that repub lic, end in the organization of a stable govern ment, urgent appeals to its justice will then be made, and, it may be hoped, with success, for the redress of all complaints of our citizens.' CENTRAL AMERICA In regard to the American Republics, which, from their proximity and other considerations, have peculiar relations to this Government, while it has been my constant aim strictly to observe all the obligations of political friendship and of good neighborhood, obstacles to this have arisen in some of them, from their own insufficient power to check lawless irruptions, which in effect throws most of the task on the United States. Thus it is that the distracted internal condition of the State of Nicaragua has made it incumbent on me to appeal to the good faith of our citizens to abstain from unlawful intervention in its af fairs, and to adopt preventive measures to the same end, which, on a similar occasion, had the best results in reassuring the peace of the Mexi can States of Sonora and Lower California. TREATIES Since the last session of Congress a treaty of amity, commerce and navigation, and for the surrender of fugitive criminals, with the king dom of the Two Sicilies ; a treaty of friendship, commerce and navigation with Nicaragua; and a convention of commercial reciprocity with the Havel - in kingdom, have been negotiated. The latter kingdom and the State of Nicaragua have also acceded to a declaration recognising as in ternational rights the principles contained in the convention between the United States and Rus sia of the 22d of July, 1854. These treaties and conventions will be-laid before the Senate for ratification. T3IEASUItr. The statements made, in my last annual mes sage, respecting the anticipated receipts and ex penditures of the Treasury, have been substan tially 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 all sources, were sixty-five million three thousand nine hun dred and thirty dollars ; and that the public ex penditures for the same period, exclusive of pay ments on account of the public debt, amounted to fifty-six million three hundred and sixty-five thousand three hundred and ninety-three dol lars- During the same period, the payments made in redemption of the public debt, including interest and premium, amounted to nine million eight hundred and forty-four thousand five hun dred and twenty-eight dollars. The balance in the Treasury at the beginning of the present fiscal year, July 1, 1856, was eighteen million nine hundred and thirty-one thousand nine hundred and seventy-six dollars; the receipts for the first quarter, and the esti mated receipts for the remaining three-quarters, amount, together, to sixty-seven million nine hundred and eighteen thousand seven hundred and thirty-four dollars; thus affording in all, as the available resources of the current fiscal year, the sum of eighty-six million eight hundred and fifty six thousand seven hundred and ten dollars. If, to the actual expenditures of the first quar ter of the current fiscal year, be added the pro bable expenditures for the remaining three quar ters, as estimated by the Secretary of the Trea sury, the sum total will be seventy-one million two hundred and twenty-six thousand eight hun dred and forty-six dollars, thereby leaving an estimated balance in the treasury on July 1, 1856, of fifteen million six hundred and twenty three thousand eight hundred and sixty-three dollars and forty-one cents. In the above estimated expenditures of the present fiscal year are included three million dollars to meet the last instalment of the ten millions provided for in the late treaty with Mexico, and, seven million seven hundred and fifty thousand dollars appropriated on account of the debt due to Texas, which two sums make an aggregate amount of tam million seven hundred and fifty thousand dollars, and reduce the ex penditures, actual or estimated, for ordinary ob jects 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 year, was forty million five - hundred and eighty-three thousand six hundred and thirty-one dollars, and, dedue kinaliti *, • a •es an orty - ions dollars The remnant of certain other government stocks, amounting to two hundred and forty three thousand dollars, referred to in my last message as outstanding, has since been paid. I am fully persuaded that it would be difficult to devise a. system superior to that by which the fiscal business of the government is now conducted. Notwithstanding the great number of public agents of collection and disbursement, it is believed that the checks and guards pro vided, including the requirement of monthly returns, render it scarcely possible for any con siderable fraud bn the part of those agents, or neglect involving hazard ofa serious public loss, to. escape detection. I renew, however, the recommendation, heretofore made by me, of the enactment of a. law declaring it felony on the part of public officers to insert false entries in their books of record or account, or to make false - returns, and also requiring them on the terreination of their service to deliver to their successors all books, records, and other. objects of a public nature in their custody. Derived as our public revenue is, in chief part, from duties on imports, its magnitude affords ,gratifying evidence of the prosperity, not only of our commerce, but of the other great interests upon which that depends. The principle that all monies not required for the current expenses of the government should remain for active employment in the hands of the people, and the conspicuous fact that the an- • nual revenue from all sources exceeds, by many millions of dollars, the amount needed for a. prudent and economical administration of pith, . lie affairs, cannot fail to suggest the propriety of an early revision and reduction of the tariff of duties on imports. It is now so generally • conceded that the purpose of revenue alone - can justify the imposition of duties on imports, that, in readjusting the impost tables and sched ules, - which unquestionably require essential modifications, a departure from the principles of tho present tariff is not anticipated. • AIIIIT. The army, during the past year, has been ac tively engaged in defending the Indian frontier,- the state of the service permitting but few and small garrisons in our permanent fortifications. The additional regiments ruthorized at the last session of Congress have been recruited and or ganized, and a large portion of the troops have already been sent to the field. All the duties, which devolve on the military establishment. have been satisfactorily performed, mid' the dangers and privations incident to the character