continued from fourth page. til exchanges. Great as has been the increase of our imports during the past y eat 5 our ex ports of domestic products sold in foreign mar kets have been still greater. Out- navicrntirm interest is eminently prosper ous. The number of vessels built in the U. S. has been greater lhan during any preceding pen od of equal length. Large profits.have been de rived bv those wno nave cousuucieu as weu as bv those who have navigated them, bhould the ratio of increase in the number of our mer chant vessels be progressive, and be as great for the future as durine the past year tne time is not distant when our tonnage and commer cial marine will be larger than that of any otn er nation in the world. Whilst the interests of aariculture, of com and of naviea'tion -have been enlarged and invigorated, itis highly gratifying to observe that our manufactures arc also in a prosperous condition. None of the ruinous effects upon this interest, which were apprehended by some as the result of the operation of the revenue s stem established by the act ot I84t, nave hpnn Tnprip.nrfifL On the contrary, the num " . bcr of manufactories, and the amount of capital invested in them is steadily and rapidly increas fR.rHintr rrratifviwr proofs that American enterprise and skiii employed in this branch of -i : i. uiiih nn nthor ndvanta- uumuswu niuni lies than those fairly and incidentally accruing from a just system ol revenue auues, are auyn- dantlv able to meet successtuiiy an competition from abroad, and still derive fair and remuner ating profits. While capital invested in raanufactutes is yielding adequate and fair profits under the . new system, the wages of labor, whether em ployed in manufactures, agriculture, commerce, or "navigation, have been augmented. The toiling millions, whose daily labor furnishes the supply of food and ranner.i.and ail the neccssa ries and comfoits of life, are receiving higher wages, and more steady and permanent employ ment than in any other country, or at any pre vious period of our own history. So successful have been all branches of our industry that a foreign war, which generally - diminishes the resources of a nation, has in no essential degree retarded our onward progress, or checked our general prosperity. With such gratifying evidences of prosperity, and of the successful operation of the revenue act of 1816, every consideration of public poli cy recommends that it shall remain unchanged. It is hoped that the system of impost duties which is established may be regarded as the permanent policy of the country, and that the great interests affected by it may not again be subject to be injuriously disturbed, as they have heretofore been, by frequent and sometimes sud den changes. For the purpose of increasing the revenue, and without changing or modifying the Tates imposed by the act of 1316 on the dutiable ar- tides embraced by its provisions, I again re commend to your favorable consideration the expediency of levying a revenue duty on tea and coffee. The policy which exempted these articles from duty during peace, and when the revenue to be derived from them was not needed, ceases to exist when the country is engaged in war, and requires the use of all its available resources. It is a tax which: would be so generally diffused among the people, that it would be felt oppressively by none, and be complained of by none. It is believed that there are not, in the list of imported articles, any which are more properly the subject of war duties than tea and coffee. It is estimated that three millions of dollars would be derived annually by a moderate duty imposed on these articles. Should Congress avail itself of this addition al source of revenue, not only would the amount of the public loan rendered necessary by the war with Mexico be diminished to that extent, but the public credit, and the public confidence in the ability and determination of the govern ment, to meet all its engagements promptly, would be more firmly established, and the re duced amount of the loan which it may be ne cessary to negotiate could probably be obtained at cheaper rales. Congress is, therefore, called upon to deter mine whether it is wiser to impose the war du ties recommended, or, by omitting to do so, in crease the public debt annually 3,000,000 so long as loans shall be required lo prosecute the war, and afterwards provide, in some other form, to pay the semi-annual interest upon it, and ultimately to extinguish the principal, if, in addition to these duties, Congress should graduate and reduce- the price of such of the public lands as experience has proved will not command the price placed upon them by the government, an additional annual income to the treasury of between half a million and . a-million of dollars, it is estimated, would be derived from this source. Should both measures receive the sanction!' Congress, the annual amount of pub lic debt necessary to be contracted during the continuance of the war would be reduced near four millions: The duties recommended to be levied on tea and coffee, it is proposed shall be limited in their duration to the end of the war, and until the public debt rendered necessary to be contracted by it shall be discharged. The amount of the public debt to be contracted should be limited to the lowest practicable sum, and should be extinguished as early after the conclusion of the war as the means of the trea sury will permit. With this view, it is recommended that, as soon as the war shall be over, all the surplus in .e treasury, not needed for other indispensable objects, shall constitute a sinking fund, and be' applied tothe purhcase of the funded debt, and that authority be conferred by law for that pur pose. The act of the 6th of August, 1846, Ho estab ' Jisli a warehousing system,' has been in opera tion more than a year, and has proved to be an important auxiliary to the tariff act of 1846, in augmenting the revenue, and extending the commerce of the country. Whilst it has tended to enlarge commerce, iV Has been beneficial to our manufactures, by- di minishing forced sales at auction of foreign goods at jow prices, to raise the duties to be' ad vanced on them, and by- checking fluctuations in the market. The system, although sanc tioned by the experience of other countries, was entirely new in the United States, and is sus ceptible of improvement in some .of its provi sions. Ths Secretary of the Treasury, upon whom was devolved large discretionary powers in -carrying this measure- into effect, has col lected, and is now collating, the practical re sults of the system in other countries, where it has long been -established). and wi&report at an! early period-of your session such further regu lations1 suggested bylhe investigation; as may render it still more effective and beneficial. By the act to 'provide for the better organiza tion of the treasury, and for the collection, safe keepingj and disbursement of the public reven ue,' all banks were discontinued as fiscal agents of the government, and the paper currency is sued by them was no longer permitted to, be re ceived in payment of public dues. The constitutional treasury created by this act went into operation on the first of January last. Under the system established by it, the public moneys have been collected, safely kept, and disbursed by the direct agency of officers of the government in gold and silver; and trans fers of large amounts have been made from points of collection to points ot disbursement, without loss' to the treasury, or injury or incon venience to the trade of the country While the fiscal operations of the government have, been conducted with regularity and ease, under this system, it has had a salutary effect in checking and preventing an undue inflation of the paper currency issued by the banks which exist under State charters. Requiring, as it does, all dues to the government to be paid in gold and silver, its effect is to restrain exces sive issues of bank paper by the banks, dispro portioned to the specie in their vaults, for the reason that they are at all times liable to be called on by the holders of their notes for their redemption, in order to obtain specie for the payment of duties and other public duties. The banks, therefore, must keep their business with in prudent limits, and be always in a condition to meet such calls, or run the hazaid of being compelled to suspend specie payments, and be thereby discredited. The amount of specie im poited into the United States during the last fiscal year, was $04,131,389, of which there was retained in the country $23,376,170. Had the former financial system prevailed, and the public moneys been placed on deposite in banks, nearly the whole of this amount would have gone into their vaults, not to be thrown into cir culation by them, but to be withheld from the hands of the people as a currency, and made the basis of new and enormous issues of bank paper. A large proportion of the specie import ed has been paid into the treasury for public dues; and after having been, to a great extent, recoined at the mint, has been paid out to the public creditors, and gone into circulation as a currency among the people. The amount of gold and silver coin now in circulation in the country, is larger than at any former period. The financial system established by the con stitutional treasury has been, thus far, eminent ly successful in its operations; and I recommend an adherence to all its essential provisions, -and especially to that vital provision. which wholly separates the government from all connexion with banks, and excludes bank paper from all revenue receipts. In some of its details, not involving its gen eral principles, the system is defective, and will require modification. These defects, and such amendments as- are deemed important, were set forth in the last annual report of the Secretary of the Treasury. Theseamendments are again recommended to the early and favor able consideration of Congress. JJunng the past year, the comage at the mint and its branches has exceeded $30,000,000. Ihis has consisted chiefly in converting the coins of foreign countries into American coin. Ihe largest amount of foreign com imported has been received at New York; and if a branch mint were established at that city, all the for eign com received at that port could at once be converted into our own corn', without the ex pense, risk, and delay of transporting it to the mint for that purpose, and the amount recoined would be much larger. .experience hasr proved that foreign coin, and especially foreign gold coin, will not circulate extensively as a currency among the people. The important measure of extending our specie circulation, both of gold and silver, and of dif fusing it among the people, can only be effected by converting such foreign coin into American coin. I repeat the recommendation contained in my last annual message for the establishment of a branch of the mint of the United States at the citv of New York. All the public lands which had been sur veyed and were ready for market have been proclaimed for sale, during the past year. The quantity offered and to be offered for sale, un der proclamations, issued since the first of January last, amounts to 9; 138,53 1 acres. The prosperity of the western States and territories in which these lands lie will be advanced by their speedy sale. By withholding them from market, their growth rnd increase of population would be retarded, while thousands of our en terprising and meritorious frontier population would be deprived of the opportunity of securing freeholds for themselves and their families. But in addition to the general considerations which rendered the early sale of these lands proper, it was a leading ing objectat thi3 time to derive as large a sum as possible from this source, and .thus diminish, by that amount,-the public loan rendered necessary by tho existence of . a foreign war. It is estimated that not less than 10,000,000 of acres of tho public lands'will be surveyed and be in a condition to be proclaimed for sale during the year 1848. in my last annual message 1 presented ihe reesons which, in my judgment, rendered it proper to graduate and reduce the price of such of the public lands as have remained unsold for long periods-after they had been offered for sale ai public auction. Many millions of acres of public lands lying, within the limits of several of the western- Slates have been offerered tn ihe market, and been subject to sale at private entry for inoe han twenty yearn, and large quantities for more than -thirty years, 1 ihe lowt price prescribed by iKb existing law, and i has been found that they will not command that price. They must remain-unsold and uncul tivated for an indefinite period unless the price demanded for ihem by , ihe government' shall be reduced. No sati -factory reason is perceived-why they should be longer held at rates above iheir real value. At tho present period an additional reason-exists for adopt ing the measure recommended When ihe .country js engaged in a foreign war, 'and :w0-mim necessarily reson to loans, it woald eVm to. be the dictate of wisdom that we honld avail ourselves of ,a!l.,qur resources,! g?4;hu kiHjunl of, jhc public jnj Hi debiedness.-io the lowest possible sum. S I recommend that the existing laws on the" subject of pre-emption righis.be amended and modified to as to operate prospectively, and to embrace all who may settle upon ihe public lauds and make improvements - upon them before they are surveyed, as well as af terwards, in all cases where such settlements may be made after the Indian title shall have been extinguished. If the right of pre-emption be thu9 extend ed, it will embrace a large and meritorious class of our citizens. It will increase the number of small freeholders upon our bor ders, who will be enabled (hereby to-educate theij children and otherwise improve their condition, while they will be found at all times,-as they have ever" proved themselves to be, in the hour of danger ro their country, among our hardiest and best soldiers, ever ready to lender their services in cases of emerget.cy and among the last to leave the field as long as an enemy remains to be en countered. Such a policy will also impress theso patriotic pioneer emigrants with deeper feelings of gratitude for the parental care of their government, when they find their dear est interests secured to them by the perma nent laws of the land, and that they are no longer in danger of losing their their homes and hard-earned improvements by being brought into competition with a more wealthy class of purchasers at the land sales. The attention of Congress was invited, at their last and the preceding session, to the importance of establishing & Territorial gov ernment over our possession in Oregon; and it is to be regretted that there was no le"is lat'.on on the bubject. Our citizens,-who in habit that distant country, are still left with out the protection of our laws, or any .regu larly organised government. Before the ques tion of limits and boundaries of the territory of Oregon was definitively settled, from the necessity of their conditiorMlie inhabitants had established a temporary government of their own. Besides the want of legal author ity for coniinuing such a government, it is wholly inadequate to protect them in their rights of person and property, or to secure to them the enjoyment of the privileges of other citizens, lo which they are entitled under the Constitution of the United States. They should have the right of suffrage, be repre sented in a Tetritorial legislature, and by a delegate in Congress ; and possess all the rights arid priviless which citizens of other portions of the Territories of the U. States have heretofore enjoyed, or may now enjoy. Our judicial system, revenue laws, laws regulating trade and intercourse with the In dian tribes, and the protection of our laws generally, should be extended over them. In addition tothe inhabitants in that terri tory who had previously emigrated to it, large numbers of our citizens have followed them during the present year ; and it is hot doubted thai during the next and subsequent 3rears their numbers will be greatly increased. Congress, at its last session, established post-routes leading to Oregon, and between different points within that territory, and au thorised the establishment of post offices at 'Astoria and such other places on ihe coasi of the Pacific, within the territory of the U. Stales, as the public interests may require.' Post offices have accordingly been estab lished, deputy postmasters appointed, and provision made for ihe transportation of the mails. The preservation of pea'cd with the. Indian tribes residing west of the Rocky mountains, will render ii proper that authority should be given by law for the appoinment of an ade quate number of Indian agents lo reside a- mon teem. I recommend that a "surveyor general's of fice be established in thai territory, and that the public lands be surveyed and brought in to market at an eaily period. I recommend, also, that giants, upon lib eral terms, of limited quantities of the public lands, be made to all citizens of the U. S. who have emigrated, or may hereafter within a prescribed period emigrate to Oregon, and settle upon them. These hardy and adven turous citizens, who have encountered the dangers and privations of a long and toilsome journey, and at length found an abiding place lor themselves and iheir families, upon the utmost verge of our western limits, shoud be seciired,in tlie homes' which they have im proved by iheir labor. , I refer you to tho accompanying report of the Secretary of War for a detailed account of the operations of ihe various branches of the public service connected with tho de- pariment under his charge. The duties de volving on this department have been unusu ally onerous and repnnsible during the past year, and have been . discharged with ability and (success. Pacific relations continue to exist with the various Indian tribes, and' most oPthem man ifest a strong friend&fiip'for the United Slates. Some depredations were committed during the pasi year upon our trains transporting supplies for ihe army, on itie road bet wen the western border Missouri and Santa Fe. These depredations,-which are sup. posed to havo been committed by bands from the region of New Mexico, have been arrest ed by the presence of a military force; or dered oui for that purpose. Some outrages have been perpetrated- by a portion of the nortliwestern bands upon' the weaker and comparatively defenceless triheH., Prompt measures were taken to prevent such occur rences in future. Between one and two thousand Indians, belonging to several tribes, have been re rnov;ed during the year from i.he i eaat of tho .Mis.KisMppMo the. country . allotted to ihen) jwest of that river, as their permanent homtk and arrangements have been made for others lo follow. - ' : f' ' : 'i? Since the treaties of 1846 with thd Cher okees, the feuds among them appear to have subsided, and ihey have becoifte mine united and contented than they have been for many years pait. The commissioners, appointed in pursuance of the act of June 27th, 1846, to settle claims arising under, the treaty of I835-'3G with that tribe, have executed their duties; and after a patient investigation, and a full and fair examination of all the oaes brought before them, closed I heir labors in the month of July lasi. This is -the fourth board of commissioners which, has bee n, or-, uanized under this trea'y. Ample opportu nity has been offered to all thoe interested to bring forward iheir claims.. No doubt is entertained that impartial justi.-e has been done by the late board, and that all valid claims einbiaced by the treaty- have been considered and allowed. This resuh, and the final settlement to be made with this tribe under the treaty of 1846, which' will be com pleted and laid before ytfu .during the session, ! will adjust all questions of controversy! be tween them and the United Stale?, and pro duce a sta'e of relations with them simple, well-defined, and satisfactory. Under the discretionary authority confer red by the act ol the third of March last, the annuities due to the various tubes have" been paid (hiring the present year to ihe heads of families instead of to their chiefs, or out-h persons as they might designate, as required by the laws previously exiting. This mode of payment has given general sa'isfaciion to the great body of the Indians. Justice has been done to ihem, and they are grateful to the government for it. A few chiefs and in terested persons may object to this mode of payment bin it is believed to be the only mode of preventing fraud and imposition from being practised upon ihe great body of com mon Indians, constituting a majority "of all the tribes. It is gratifying to perceive that a number of the tribes have recently manifested atv in creased interest in the establishment of schools among them, and are making rapid ad vances in agriculture some of ihem pro ducing a sufficient quantity of food for their support, and in some cases a surplus to' dis pose of to their neighbors. The comforts by which those who have received even a' very limited education, and have engaged in agri culture, are surrounded,- tend gradually to drawoffiheir less civilized brothren from the precarious means of subsistence by the chase, to habits of labor and civilization. The accompanying report of the Secretary of the Navy presents a satisfactory and grati fying account of the condition and operations of ihe naval service during the past year. Our commerce has been pursued with in creased activity, and with safety and succss, in every quarter -of the globe under ihe pro tection of our flag, which the navy has caused lo be respected in the most distant seas. In the gulf of Mexico, and in the Pacific, the officers and men of our Squadrons have displayed distinguished gallantry, and per formed valuable services. In the early sta ges of the war with Mexico, her ports on both coasts were blockaded, and more recent ly many of ihem have been captured and held by the navy. When acting in co-operation witn tne land lorces, the naval officers and men have perfrmed gallant and distinguished services on land as well as on water, and de serve the high commendation of the country. Wnile other maritime powers are adding 10 ihesr navies large numbers of war steamers. 11 was a wise policy on our pari to make similar additions to our naiy. The four war steamers authorized by the act of the 3d of March, 1847, are in course of construction. In addition to the four war steamers au thorised by this act, the Secretary of the Na vy has, in pursuance of its provisions, enter ed into contracts for the construction' of five steamers, to be. employed in the transporta tion of the U. S'. mail 'from N. York lo N. Orl eans, touching at Charleston, Savannah and Havana, and from Havana to Chagres ;' for three steamers to be employed in like manner Irom Panama to Oregon, rso a to' connect with the mail from Havana to Cha gres across the Isthmus;' and for five steam ers to be employed in like manner fro.n New York to Liverpool. These steamers will be the properly of the contractors, but are to be built tinder the isiipdrintendance and 'direc tion of a naval rco'tismfctor' ijY the ei'nploy of the Navy Department, and to be so construc ted as to render them convertible at the least possible expense into war steamers of ih'e first class.' A prescribed:. number of naval officers, as well as a post office agent, are to bo on board of them; and authority is reserved to the Na vy Department at all times to"'exercise con irol over said steamships,1 and 'to have the right' 'to take ihem for the exclu-i.ve use and service of the U S.' ' upon miking proper i compensation -to the contractors therefor Whilst these steam-ships will he employed in transporting the mulls of U.-S. coastwise, and to foreign countries, upon ait annual com pensation to be paid to the owner?, they will be always ready, upon aii emergency requir ing it, to be converted into wai steamers; and the right reserved to lake them for public use, will add greatly to the efficiency and strength of our naval force. To the steamers ihqs authorized under contracts made by the Sec rotary of the Navy, should be addod five oth er authorized under contract made in pursu ance of law by ihe Postmaster General, ma king ,anf addfu'nn. in the whole, of, eighteen wo, 0iu,r,R, miujicuo. toe - tai e n for- public use . A8.-iuriucr-coniGUtioriho transport Itation of the maH. foreign countries may he authorized by Congress, this number may be enlarged indefinitely. The enlightened policy by which a rapid communication with the various distant parts of the globe is established, by means of Amer ican built &ea steamers, would find an ample reward in the increase of our commerce, and in making our country and its resources more -favorably known abroad;-but ihejiaiional ad vantage is si ill greater, of having our naval officers made familiar with s-eam navigation; and of having ihe privilege of taking ihe ships already equipped for immediate service at a moment's notice ; and will bo cheaply pur chased by- the , compensation to- be -paid for the tran.spnriation of the mait in them, oer and aliove the postages received'. A just national pride, no-less tKati bur com mercial interests, would seem to faor the policy of augmenting the number of this de scription of vessels. They caw be butlt m our country cheaper and in greatec numbers than in any other in. the world. I refer you to ihe accompanying report of the Postmaster General for a detailed and1 satisfactory account of the condiiion and ope rations of that department during the pa -a year. It is uratifving to find that, within so short a period after the reduction in the raw-s of postage, and not withstanding the great in crease of mail service, the revenue received for the year will be sufficient to defray all the expenses and that no fuither aid will be required from the treasury for that purpose. The first of the American mail steamers authorised by the acl of the third of March,. 1845, was compled and entered upon the ser vice on the first of June last, and it is now on her third voyage to Bremen and other in termediate ports. The other vessels author ized under ihe provisions of ihnt act are in course of construction, and will be put upon the line as soon as completed. Contracts have also been made for the lrahportaiion of the mail in a steamer from Charleston to Ha vana1. A- reciprocal and satisfactory postal ar rangement has been made by th Postmaster General with ihe authorities of Bremen, and no difficulty is apprehended in making simi lar arrangements with all other Powers with which" we may have communiratinns.by mail steamer?,- except with Great Britain On the arrival of the fust of the American steamers, bound to Bremen, at Southampton, in the month of June last, the British post office directed ihe collection of discrimina ting" postages or. all letiers and other maila ble mailer, which' she took out to Greal Bri tain, or which vvent into the British post of fice on iheir way to France and oilier puts of Europe. The effect of the order ol the British po&t office is to subject all letters and other matter transported by American steam ers to doable postage, one postage having been previously paid on them lo the Untnd States, while letters transported in British steamers are subject to pay hut a single pos tage. This measure was adopted with tin? avowed object of protecting the British line of mail steamers now running between But ton and Liverpool, and, if permitted to con tinue, must speedily put an end to tho trans portation of all lettuss at.d other mailer ly American steamers, and to give British steam ers a monopoly of the business. -A just and fair reciprociiy is all thai we desire, and on this we must insist. By our laws, no suvh discrimination is made against British stoatn ers bringing letters into our ports, but all le' ters arriving in the U. S are. hubject to the same rate of postage, whether brought in Bri tish or American vessels. I refer you to the report of the Postmaster General' for a full statement of the facts of the case, and of ihe steps taken by him to correct this inequality. He has exeited all ihe power conferred upon him by the existing laws. Tho minister of the United States at Lon don has brought tho subject to ihe British government, and h iioav engaged in negotia tions for the purpose of adjusting reciprocal postal arrangements, which shall be equally jual in both countries. Should he fail in concluding such arrangements, and should Great Britain insist on enforcing the unequal and unjust measure she has adopted, it will become necessary to confer additional pow ers on the Postmaster General, in- order to enable him to meet the emergency, and to put our own steamers on an equal footing with British steamer's engaged in transporting the niail betweeil tire two countries; and I re commend that such powers, be conferred. In -vjew; of the, exjsjjng state of, our coun try, 1 trust it may not be inappropriate, .in closing this communication, lo call to mind the words of wisdom and admonition of tho first' and most illustrious of my predecessors, in his farewell address to his countrymen. That greatest and best of men, who serred his country so long, and loved it so much, foresaw, with " serious concern," the danger tO Our Union " of cliiirnntimiiiir nnri Uxr. geographical discrimiuat.ons-nor and sovinern, Atlantic and western whence dtr- signing men may endeavor to excite a belief lhat there is a real difference of local inter ests and views," and Warned his. countrymen against it. So deep and'solemn was his conviction of the importance of tho Union and of preser ving harmony between its, difforcni pari?, that ho declared to his countrymen :iu that address, " it is of infinite moment' that you should properly estimate the immense value of your national Union to your collective and individual happiness ; that you should cher ish a cardial, habitual,, and immovable attach ment to it; accusioming . yourselves to think sand to speak of jtuas a paUadium of your po liticakiafety and .'prosperity .watchingfor
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