PRESIDENT'S MESSAGE. Fellow citizens of the Senate and of the House of Representatives I congratulate you and our common con stituency upon the favorable auspices under which you meet for your first session. Onr country is at peace with all the world. The agitation which, for a time threatened to disturb the fraternal relations which make us one people, is fast subsiding; and a year of gesteralyrosperity and health has crown ed the nation with unusual blessings. None can lo* beck to the dangers which are pass ed, or fbrward to the bright prospect before us, - Wltout feeling a thrill of gratification, at the fal4B lime that he must be impressed with a grateful sense of our profound obliga tions to a.beneficent Providence, whose pa ternalcare is so manifest in the happiness of this highly-favored land. Since the close of the last Congress, certain Cubans and other foreigners resident in the United States, who were more or less con cerned in the previous invasion of Cuba, in stead of being discouraged by its failure, have again abused the hospitality of this country, by making it the scene of the equip ment of another military expedition against that possession of her Catholic majesty, in which they were countenanced, aided and joined by citizens of the United States. On receiving intelligence that such designs were entertained, I lost no Limo in issuing such in structions to the proper officers of the Uni ted States as seemed to be called for by the occasion. By the proclamation, a copy of which is herewith submitted, I also warned those who might be in danger of being invei gled into this scheme of its unlawful charac ter, and of the penalties which they would incur. For some time there was reason to hope that these measures had sufficed to pre vent any such attempt. This hope, howev er, proved to be delusive. Very early in the morniu,g of the third of August, a steamer called the Pamper° departed from New Or leans for Cuba, having on board upwards of four hundred armed men, with evident inten tions to make war upon the authorities of the island. This expedition was aet on foot in palpable violation of the laws of the United States. Its leader was a Spaniard, and sever al of the chief officers, and some others enga ged in it, were foreigners. The persons composing it, however, were mostly citizens of the United States. Before the expedition set out, and proba bly before it was orgonized, a slight insurrec tionary movement, which appears to have been soon suppressed, had taken place in the eastern quarter of Cuba. The importance of this movement was unfortunately so much exaggerated in the accounts of it published in this country, that thew: , adventurers seem to have been led to believe that the Creole population of the island riot only desired to throw off the authority of the mother coun try, but had resolved upon that step, and had begun a well-concerted enterprise for ef fecting it. The persons engaged in the ex pedition were generally young and ill-in formed. The steamer in which they embark ed left New Orleans stealthily and without al clearance. After touching at Key West, she proceeded to the coast of Cuba, and, on the night between the 11th and 12th of August, landed the persons on board at Playtas, within about twenty leagues of Havana. The main body of them proceeded to, and took possession of, an inland village, six leagues distant, leaving others to follow in charge of the baggage, as soon as the means of transportation could be obtained. The latter, having taken up their line of march to connect themselves with the main body, and having proceeded about four leagues into the country were attacked on the morning of the 13th by a body of Spanish troops, and a bloody conflict ensued; after which they retreated to the place of disembarcation, where about fifty of them obtained beats and re-embarked therein. They were, however, intercepted among the keys near the shore by a Spanish steamer cruising on the coast, captured and carried to Havana, and, after be ing examined before a military court, were sentenced to be publicly executed, and the sentence was carried into effect on the 16th of August. On receiving information of what had oc curred, Commodore Foxhall A. Parker was instructed to proceed in the steam-frigate Saranac to Havana, and inquire into the char ges against the persons executed, the circum stances under which they were taken, and whatsoever referred to their trial and sen tence. Copies of the instructions from the Department of State to him, and of his let ters to that Department, are herewith sub mitted. According to the record of the examina tion, the prisoners all admitted the offences charged against them, of being hostile inva ders of the island. At the time of their trial and execution the main body oh the invaders was still in the field, making war upon the Spanish authorities and Spanish subjects.— After the lapse of someday's, being overcome by the Spanish troops, they dispersed on the 24th of August; Lopez, their leader, was captured some days after, and executed on Ist of September. Many of his remaining followers were killed, or died of hunger and fatigue, and the rest were made prisoners,— Of these, none appear to have been tried or executed. Several of them were pardoned upon application of their friends and others, and the rest, about one hundred and sixty in number, were sent to Spain. Of the final disposition made of these we have no official information. Such is the melancholy result of this ille gal and ill-fated expedition. Thus, thought less young men have been induced, by false and fraudulent representations, to violate the law of their country, through rash and un founded expectations of assisting to accom plish political revolutions in other States, and have lost their lives in the undertaking.—. Too severe a judgement can hardly be passed, by the indignant sense of the community, upon those who, being better informed them selves, have yet led away the ardor of youth and an ill-directed love of political liberty.— The correspondence between this Govern ment and that of Spain relating to this trans action is herewith communicated. Although these offenders against the laws have forfeited the protection of their country, yet the Government may, so far as is consist ent with its obligations to other countries, and its fixed purpose to maintain and enforce the laws, entertain sympathy for their unof fending families and friends, as well as a feeling of compassion for themselves. Ac cordingly no proper effort has been spared, and none will be spared, to procure the re lease of such citizens of the United States, engaged in this unlawful enterprise, as are now in confinement in Spain; but it is to be hoped that such interposition with the gov ernment of that country may trot be consid- eyed as affording any ground of expectation that the Government of the Unitt;cl States will : hereafter, feel itself under any obliga tion of duty to intercede for the liberation or . pardon of such persons as are flagrant offen ders ag ainst the law of nations and the laws of the United States. These laws must be executed. If we desire to maintain our re- spectability among the nations of the earth, it behoves us to enforce steadily and sternly the neutrality acts passed by Congress, and to follow, as far as may be, the violation of those acts with condign punishment. But what gives a peculiar criminality to this invasion of Cuba is, that under the lead of Spanish subjects and with the aid of citi zens of the United States. it had its origin, with many, in motives of cupidity. Money was advanced by individuals, probably in considerable amounts, to purchase Cuban bonds, as they have been called, issued by Lopez, sold, doubtless, at a very large dis count and for the payment of which the pub- lic lands and public property of Cuba, of whatever kind, and the fiscal resources of the people and government of that island, from what ever source to be derived, were pledged, as well as the good faith of the gov ernment expected to be established. All these means of payment, it is evident, were only to be obtained by a process of bloodshed, war, and revolution. None will deny that those who set on foot military expeditions I against foreign States by means like these are far more culpable than the ignorant anti the necessitous whom they induce to go forth as the ostensible parties in the proceeding.— These originators of the invasion of Cuba seem to have determined, with coolness and system, upon an undertaking which should disgrace their country, violate its laws, and put to hazard the lives of ill-informed and deluded men. You will consider whether further legislation be necessary to prevent the perpetration of such offences in future. No individuals have a right to hazard the peace of the country or to violate its laws upon vague notions of altering or reforming governments in other States. This principle is not only reasonable in itself, and in accor dance with public law, but is engrafted into the codes of other nations as well as our own. But while such are the sentiments of this Government, it may be added that every in dependent nation must be presumed to be able to defend its possessions against unau thorized individuals banded together to at- tack them. The Government of the United States, at all times since its establishment, has abstained and has sought to restrain the citizens of the country, from entering into controversies between other powers, and to observe all the duties of neutrality. At an early period of the Government, in the ad ministration of Washington, several laws were passed for this purpose. The main provisions of these laws were re-enacted by the act of April, 1818, by which, amongst other things, it was declared that if any per son shall, within the territory or jurisdiction of the United States, begin, or set on foot, or provide, or prepare the means for any milita ry expedition or enterprise to be carried on from thence against the territory or dominion of any foreign prince or State, or of any col ony, district, or people with whom the Uni ted States are at peace, every person so of feru:ing shall be deemed guilty of a high mis demeanor, and shall be fined, not exceeding three thousand dollars, and imprisoned not more than three years; and this law has been executed and enfOrced;to the full extent of the power of the Government, from that day to this. In proclaiming and adhering to the doc trine of neutrality and non-intervention, the United States have not followed the lead of other civilized nations; they have taken the lead themselves, and have been followed by others. This was admitted by one of the most eminent of modern British statesmen, who said in Parliament, while a minister o_ the crown, “that, if he wished for a guide in a system of neutrality, he should take that laid down by America in the ds of Wash ington and the secretaryship of Jefferson ;" and we see, in fact, that the act of Congress of 1818 was followed, the succeeding year, by an act of the Parliament of England, sub stantially the same in its general provisions. Up to that time there had been no similar law in England,. except certain highly penal statutes passed in the reign of George 11, prohibiting English subjects from enlisting in foreign service, the avowed object of which statutes was, that foreign armies, raised for the purpose of restoring the house of Stuart to the throne, should not be strengthened by recruits from England herself. All must see that difficulties may arise in carrying the laws referred to into execution in a country now having three or four thou sand•miles of seacoast, with an infinite num ber of ports and harbors and small inlets, from some of which unlawful expeditions may suddenly set forth, without the knowl edge of Government, against the possessions of foreign States. Friendly relations with all, but entangling alliances with none, has long been a maxim with us. Our true mission is not to propa gate our opinions, or impose upon other countries our form of government, by arti fice or force; but to teach by example, and show by our success, moderation and justice, the blessings of all self-government, and the advantages of free institutions. Let every people choose for itself, and make and alter its political institutions to suit its own con dition and convenience. But, while we avow and maintain this neutral policy our selves, we are anxious to see the same for bearance on the part of other nations, whose forms of government are different from our own. The deep interest which we feel in the spread of liberal principles and the es tablishment of free governments. / and the sympathy with which we witness every struggle against oppression, forbid that we should be indifferent to a case in which the strong arm of a foreign power is invoked to stifle public sentiment and repress the spirit of freedom in any country. The governments of Great Britain and France have issued orders to their naval commanders on the West India station to prevent by force, if necessary, the landing of adventurers from any nation on the Island of Cuba with hostile intent. The copy of a memorandum of a conversation on this sub ject between the Charged Affaires of her Britannic Majesty and the Acting Secretary of State, and of a subsequent note of the for mer to the Department of State, are herewith submitted, together with a copy of a note of the Acting Secretary of State to the Minister of the French republic, and of the reply of the latter, on the same subject. These pa pers will acquaint you with the grounds of this interposition of the two leading commer cial powers of Europe, and with the appre hensions, which this Government could not fail to entertain, that such interposition, if carried into effect, might lead to abuses in derogation of the maritime rights of the l United States are founded on a firm, secure, and well-defined basis; they stand upon the ground of National Independence and public law, and will be maintained in all their full and just extent. The principle which this Government has heretofore solemnly announced it still adheres to, and will maintain under all circumstances and at all hazards. That principle is, that ir. every regularly documented merchant ves sel, the crew who navigate it, and those on board of it, will find their protection in the flag which is over them. No American ship can be allowed to be visited or searched for the purpose pf ascertaining tine character of individuals on board, nor can there be allow ed any watch by the vessels of any foreign nation over American vessels on the coasts of the United State or the seas adjacent there to. It will be seen by the last communica tion from the British Charge d'Affaires to the Department of State, that he is authorized to assure the Secretary of State that every care will be taken that ) in executing the preven tive measures against the expeditions, which the United States Government itself has de nounced as not being entitled to the proton. lion of any government, no interference shall take place with the lawful commerce of any nation. In addition to the correspondence on this subject, herewith submitted, official informa tion has been received at the Department of State, of assurances by the French govern ment that, in the orders given to the French naval forces, they were expressly instructed, in any operations they might engage in, to respect the flag of the United States wher ever it might appear, and to commit no act of hostility upon any vessel or armament un der its protection. Ministers and consuls of foreign nations are the means and agents of communication between us and those nations, and it is of the utmost importance that, while residing in country, they should feel a perfect security so long as they faithfully discharge their re spective duties and are guilty of no violation of our laws. This is the admitted law of nations, and no country has a deeper interest in maintaining it than the United States.— Our commerce spreads over every sea and visits every clime, and our ministers and consuls are appointed to protect the interests of that commerce, as well as to guard the peace of the country and maintain the honor of its flag. But how can they discharge these duties unless they Ile themselves pro tected; and, if protected, it must be by the laws of the country in which they reside.— And what is clue to our own public function aries residing in foreign nations is exactly the measure of what is due to the functionaries of other governments residing here. As in war, the bearers of flags of truce are saored, or else wars would be interminable, so in peace, embassadors, public ministers, and consuls, charged with friendly national inter course, are objects of especial respect and protection, each according to the rights be longing to his rank and station. In view of these important principles, it is with deep mortification and regret I announce to you that, during the excitement growing out of the executions at Havana, the office of her Catholic majesty's consul at New Orleans was assailed by a mob, his property destroy ed, the Spanish flag found in the office carri ed offend torn in pieces, and he himself in duced to flee for his personal safety, which he supposed to be in danger. On receiving intelligence of these events, I forthwith di rected attorney of the United States rai ding at New Orleans to inquire into the facts and the extent of the pecuniary . loss sustained by the consul, with the intention of laying them before you, that you might make pro vision for such indemnity to him as a just regard for the honor of the nation and the respect which is due to a friendly power might, in your judgement, seem to require. The correspondence upon this subject be tween the Secretary of State and her Catho lic majesty's minister plenipotentiary is here with transmitted. The occurrence at Now Orleans has led me to give my attention to the state of our laws in regard to foreign embassadors, min isters, and consuls. I think the legislation of the country is deficient in not providing sufficiently either fer the protection or the punishment of consuls. I there fore recommend the subject to the con sideration of Congress. Your attention is again invited to the ques tion of reciprocal trade between the United States and Canada and other British posses sions near our frontier. Overtures for a con vention upon this subject have been received from her Britannic Majesty's Minister Pleni potentiary, but it seems to be in many re spects preferable that the matter should be regarded by reciprocal legislation. Docu ments are laid before you showing the terms which the British government is willing to offer, and the measures which it may adopt, if some arrangement upon this subject shall not be made. From the accompanying copy of a note from the British Legation at Washington, and the reply of the Department of State thereto, !it will appear that her Britannic Majesty's government is desirous that a part of the boundary line between Oregon and the British Possessions should be authorita tively marked out, and that an intention was expressed to apply to Congress for an appro priation to defray the expense thereof on the part of the United States. Your attention to this subject is accordingly invited, and a pro per appropriation recommended. A convention for the adjustment of claims of citizens of the United States against Por tugal has been concluded, and the ratifica tions have been exchanged. The first instal ment of the amount to be paid by Portugal fell due on the 30th of September last, and has been paid. The President of the French Republic, ac cording to the provisions of the convention, has been selected as arbiter in the case of the General Armstrong; and has signified that he accepts the trust and the high satheaction he feels in acting as the common friend of two nations, with France is united by sen timents of sincere and lasting amity. The Turkish government has expressed its thanks for the kind reception given to the Sultan's agent, Amin Bey, on the occasion of his recent visit to the United States On the 28th of February last a despatch was addres sed by the Secretary of State to Mr, Marsh, the American Minister at Constantinople, instructing him to ask of the Turkist govern ment permission for the Hungarians, then im prisoned within the dominions of flu/Sublime Porte, to remove to this country. On the 3d of March last both Houses of Congress pass ed a resolution requesting the President to authorise the employment of a pubic vessel to convey to this country Louis IComutti and his associates in captivity. The instruction above referred to was com plied with, and the Turkish government hav ing released Governor Kossuth acid his cona- panions from prison, on the 10th of Septem ber last they embarked on board of the Uni ted States steam-frigate Mississippi, which was selected to carry into effect the resolu tion of Congress, Governor Kossuth left the Mississippi at Gibralter, for the purpose of making a visit to England, and may short ly be expected in New York. By commu nications to the Department of State he has expressed his grateful acknowledgements for the interposition of this Government in behalf of himself and his associates. This country has been justly regarded as a safe asylum for those whom political events have exiled from their own homes in Europe; and it is recommended to Congress to consider in what manner Governor Kossuth and his ' companions, brought hither by its authority, shall be received and treated. It is earnestly to be hoped that the differen ces which have for some time past been pen ding between the government of the French republic and that of the Sandwich Islands, may be peaceably and durably adjusted, so as to secure the independence of those islands. Long before the events which have of late imparted so much importance to the posses sions of the United States on the Pacific, we acknowledge the independence of the Hawai ian government. This government was first in taking that step, and several of the leading powers of Europe immediately followed.— We were influenced in this measure by the existing and prospective importance of the islands as a place of refuge and refreshment for our vessels engaged in the whale fishery, and by the consideration that they lie in the course of the great trade which must, at no distant day, be carried on between the west ern coast of North America and Eastern Asia. We were also influenced by a desire that those islands should not pass under the con trol of any other great maratime State, but should remain in an independent condition, and so be accessible and useful to the' com merce of all nations. I need not say that the importance of these considerations has been greatly enhanced by the sudden and vast de velopement which the interests of the United States have attained in Falifornia and Ore gon; and the policy heretofore adopted in re gard to those islands will be steadily pur ged. It is gratifying not only to those who con sider the commercial interests of nations, but also to all who favor the progress of knowl edge and the diffusion of religion, to see a community emerge from a savage state and attain such a degree of civilization in those distant seas. It is much to be deplored that the internal tranquility of the Mexican republic should again be seriously 'disturbed; for, since the peace between that republic and the United States it had enjoyed such comparative repose that the most favorable anticipations for the future might, with a degree of confidence, have been indulged. These, however, have been thwarted by the recent outbreak in the State of Tamaulipas, on the right bank of the Rio Bravo. Having received information that persons from thii United States had ta. ken part in the insurrection, and apprehend ing that their example might be followed by others, I caused orders to be issued for the purpose of preventing any hostile expeditions against Mexico from being set on foot in violation of the laws of the United States.— I likewise issued a proclamation upon the subject, a copy of which is herewith laid be fore you. This appeared to be rendered im perative by the obligations of treaties and the general duties of good neighborhood. In my last annual message I informed Con gress that the citizens of the United States had under taken the connexion of the two oceans by means of a railroad across the Isth mus of Tehuantepec, under a grant of the Mexican government to a citizen of that re public; and that this enterprize would proba bly be prosecuted with energy whenever Mexico should consent to such stipulations with the government of the United States as should impart a feeling of security to those who could invest their property in the en terprise. A convention between the two govern ments for the accomplishment of that end has been ratified by . this Government, and only awaits the decision of the Congress and the Executive of that republic. Some unexpected difficulties and delays have arisen in the ratification of that conven tion by Mexico, but it is to be presumed that her decision will be governed by just and en lightened views, as well of the general im portance of the object, as of her own interests and obligations. In negotiating upon this important subject, this Government has had in view one, and only one, object. That object has been, and is, the construction or attainment of a pas sage from ocean to ocean, the shortest and the best for travellers and merchandise, and equally open to all the world. It has sought to obtain no territorial acquisition, nor any advantages peculiar to itself ; and it would see, fflith the greatest regret, that Mexico should oppose any obstacle to the accom plishment of an enterprise which promises so much convenience to the whole commer cial world, and such eminent advantages to Mexico herself. Impressed with these sen timents and these convictions, the Govern ment will continue to exert all proper efforts to bring about the necessary arrangement with the republic of Mexico for the speedy completion of the work. For some months past the republic of Nic aragua has been the theatre of one of those civil convulsions, from which the cause of free institutions, and the general prosperity and social progress of the States of Central America, have so often and so severely suffer ed. Until quiet shall have been restored, and a government apparently stable shall have been organized, no advance can pru dently be made in disposing of the questions pending between the two countries. lam happy to announce that an inter oceanic communication from the mouth of the St. John to the Pacific has been so far accomplished as that passengers have actual ly traversed it and merchandise has been transported over it; and when the canal shall have been completed, according to the origi nal plan, the means of communication will be further improved. It is understood that a considerable part of the railroad across the Isthmus of Panama has been completed, and that the mail and passengers will in future be conveyed thereon Whichever of the several routes between the two oceans may ultimately prove most eligible for travellers to and from — the differ ent States on the Atlantic and Gulf of Mexi co and our coast on the Pacific, there is little reason to doubt that all of them will be use ful to the public, and will liberally reward that, individual enterprise, by which alone they have been or are expected to be carried into effect. Peace has been concluded between the con tending parties in the bland of St. Domingo, and it is hoped upon a durable basis. Such is the extent of our commercial relations with that island, that the United States cannot fail to feel a strong interest in its tranquillity. The office of Commissioner to China remains unfilled; several persons have been appoint ed, and the place has been offered to others, all of whom have declined its acceptance, on the ground of the inadequacy of the compen-. cation. The annual allowance by law is six thousand dollars, and there is no provision for any outfit. I earnestly recommend the! consideration of this subject to Congress.— Our commerce with China is highly impor tant, and is becoming more and more so, in consequence of the increasing intercourse be tween our ports on the Pacific coast and Eas tern Asia. China is understood to be a coun try in which living is very expensive, and I know of no reason why the American Com missioner sent thither should not be placed, in regard to compensation, on an equal foot ing with ministers who represent this coun try at the courts of Europe. By reference to the Report of the Secretary of the Treasury, it will be seen that the ag gregate receipts for the last fiscal year amounted to $52,312,979 87; which, with. the balance in the Treasury on the Ist July, 1850, gave, as the available means for the year, the sum of $58,917,524 36. The total expenditures for the same period were $48,005,878 68. The total imports for the year ending 30th June, 1851, were $215,725,995 Of which there were in specie, 9,967,901 The exports for the same period were $217,517,130 Of which there were of domestic,products $178,546,555 Foreign goods re- _ exported, Specie, 9.738,695 29,231,880 . . $217,517,130 Since the let of December last the pay ments in cash on account of the public debt, exclusive of interest, have amounted to $7,- 501,456 56; which, however, includes the turn of $3,242,400 paid under the 12th article of the treaty with Mexico, and the further turn of $2,591,213 45, being the amount of awards to American citizens under the late treaty with Mexico, for which the issue of stock was authorized, but which was paid in cash from the Treasury. The public debt on the 20th ultimo, exclu sive of the stock authorized to be issued to Texas by the act of 9th September, 1850, was $62,560,395 26. The receipts for the next fiscal year are es timated at $51,800,000, which, with the pro bable unappropriated balance in the Treasu ry, on the 30th June next, will give, as the probable available means for that year, the sum of $63,258,743 09. It has been deemed proper, in view of the large expenditures consequent upon the ac quisition of territory from Mexico, that the estimates for the next fiscal year should be laid before Congress in such mariner as to distinguish the expenditures so required from the otherwise ordinary demands upon the Treasury. The total enpenditures for the next fiscal year are estimated at 842,892,299 19, of which there is required for the ordinary pur poses of the Government, other than those consequent upon the acquisition of our new Territories, and deducting the payments on account of the public debt, the sum of $33, 343,198 08; and for the purposes connected directly or indirectly with those Territories, and in the fulfilment of the obligations of the Government, contracted in consequence of their acquisition, the sum of $9,549,101 11. If the views of the Secretary of the Trea sury in reference to the expenditures requir ed for these Territories shall be met by cor responding action on the part of Congress, and appropriations made in accordance there with, there will be an estimated unappropri ated balance in the Treasury on the 30th June, 1853, of $20,366,413 90, wherewith to meet that portion of the public debt due on the first July following, amounting to $6,- 237,931 35, as well as any appropriations which may be made beyond the estimates. In thus referring to the estimated expendi- tures on account of our newly-acquired Ter ritories, I may express the hope that Con gress will concur with me in the desire that a liberal coarse of policy may be pursued to wards them, and that every obligation, ex press or implied, entered into in consequence of their acquisition, shall be fulfilled by the most liberal appropriations for that purpose. • The values of our demestic exports for the last fiscal year, as compared with those of the previous year, exhibit an increase of 543,646,322. At first view this condition of our trade with foreign nations would seem to present the most flattering hopes of its future prosperity. An examination of the details of our exports, however, will show that the incresed value of our exports for the last fiscal year is to be in the high price of cotton which prevailed during the first half of that year, which price has since de clined about one-half. Thoyalue of our exports of breadstuffs and provisions, which it was supposed the incen tive of a low tariff and large importations from abroad would have greatly augmented, has fallen from $68,701,921, in 1847, to $26,051,373 in 1850, and to $21,948,653 in 1851, with a strong probability, amounting almost to a certainty, of a still further reduc tion in the current year. The aggregate values of rice exported du ring the last fiscal year, as compared with the previous year, also exhibit a decrease amounting to $460.917, which, with a de cline in the values of the exports of tobacco for the same period, make an aggregate de crease in these two articles' of $1,156,751. The policy which dictated a low rate of duties on foreign merchandise, it was thought by those who promoted and established it, would tend to benefit the farming population of this country, by increasing the demand and raising the price of agricultural products in foreign markets. The foregoing facts, however, seem to show incontestibly that no such result has followed the adoption of this policy. On the contrary, notwithstanding the repeal of the restrictive corn laws in England, the foreign demand for the products of the American far mer has steadily declined, since the short crops and consequent famine in a portion of Europe have been happily replaced by full crops and comparative abundance of food. It will be seen, by recurring to the coin- mercial statistics for the past year, that the value of our domestic exports has been in creased in the single item of raw cotton by $40,000,000 over the value of that export for the year preceding. This is not due to any increased general demand for that artiole,but to the short crop of the preceding year, which created art increased demand,and an augmen ted price for the crop of last year. Should the cotton crop now going forward to market be only equal in quantity to that of the year pre ceding, and be sold at the present prices, then there would be a falling off in the value of our exports for the present fiscal year of at least $40,000,000, compared with the amount exported for the year ending 30th June, 1851. The production of gold in California for the past year seems to promise a large sup ply of that metal from that quarter for some time to come. • This large annual increase of the currency of the world must be attended with its usual results. These have been al ready partially disclosed in the enhancement of prices and a rising 'spirit of speculation and adventure, tending to overttiding, as well at home as abroad. Unless settle salu tary check shall be given to these tendencies ; it is to be feared that importations of foreign goods beyond a healthy demand in this coun try will lead to a sudden drain of the pre cious metals from us, bringing with it, as it has done in former times, the most disas trous consequences to the business and capi tal of the American people. The exports of specie . to liquidate our for-, eign debt during the past fiscal year have. been $24,263,979 over the amount of specie imported. The exports of specie during the first quarter of the present fiscal year havs been $14,651,827. • Should specie continue to be exported at this late for the remaining three quarters of this year, it will drain from our metallic currency during the year ending 30th June, 1852, the enormous amount of $58,607,308. In the present prosperous condition of the national finances, it will become the duty of Congress to consider the beat mode of paying off the public debt. If the present and anti cipated surplus in the Treasury should not be absorbed by appropriations 0. , an extraor dinary character, this surplus should be em ployed in such way, and under such restric tions, as Congress may enact, in extinguish ing the outstanding debt of the nation. By reference to the act of Congress appro ved 9th September, 1850, it will be seen that, in consideration of certain concessions by the State of Texas, it is provided that the "Uni ' ted States shall pay to the State of Texas the sum of ten millions of dollars, in a stock bearing five per cent. interest, and redeema ' ble at the end of fourteen years, the interest ' payable half yearly, at the Treasury of the United States." In the same section of the law it is further provided "that no more than five millions of • said stock shall be issued until the creditors of the State holding bonds and °the': certifi cates of stock of Texas, for which duties on imports were specially pledged, shall first file at the Treasury of the United States re - leases of all claims - against the United States, for or on account of said bonds or certifi cates, in such form as shall be prescribed by the Secretary of the Treasury, and ap proved by the President of the United States." The form of release thus provided for has been prescribed by the Secretary of the Trea sury, and approved. It has been published in all the leading newspapers in the comrner cial cities of the United States, and all per sons holding claims of the kind specified in the foregoing proviso were required to file their releases (in the form thus prescribed) in the Treasury of the United States, on or be fore the Ist day of October, 1851. Although this publication has been continued from the 25th day of March, 1851, yet up to the Ist of October last comparatively few releases had been filed by the creditors of Texas. The authorities of the State of Texas, at the request of the Secretary of the Treasury, have furnished a schedule of the public debt of that State created pri or to her admission into the Union, with a copy of the laws under which each class was contracted. I have, from the documents furnished by the State of Texas, determined the classes of claims which in my judgement fall within the provisions of the act of Congress of the 9th of September, 1850. On being officially informed of the ac ceptance by Texas of the propositions con tained in the act referred to, I caused the stock to be prepared, and the five millions which arc to be issued unconditionally, bearing an interest of five per cent. from the Ist day of January, 1851, have been for some time ready to be delivered to the State of Texas. The authorities of Texas, up to the present time,'have not authori zed any one to receive this stock, and it remains in the Treasury Department, sub ject to the order of Texas. The releases, required by law to be de posited in the Treasury, no havingt been filed there, the remaining five millions have not been issued. This last amount of the stock will be withheld from Texas until the conditions upon which it is to be delivered shall be complied with by the creditors of that State, unless Congress shall otherwise direct by a modification of the law. In my last annual message, to which 1 respectfully refer, I stated briefly the reasons which induced me to recommend a modification of the present tariff, by con verting the ad valorem in to a specific du ty, wherever the article imported was of such a character as to permit it, and that such a discrimination should be made, in favor of the industrial pursuits of our own country, as to encourage home pro duction without excluding foreign com petition. The numerous frauds which continue to be practised upon the revenue, by false invoices and undervaluations, constitute an unanswerable reason for adopting specific instead of ad valorem duties in all eases where the nature of the commodity does not forbid it. A striking illustration of those frauds will be exhibited in the Re port of the Secretary of the Treasury, showing the custom-house valuation of ar ticles imported under a former law subject to specific duties,when there was no induce ment to undervaluation, and the custom house valuations of the same articles, un der the present system of ad valorem du ties, so greatly reduced as to leave no I doubt of the existence of the most flagrant abuses under the existing laws. This practical evasion of tho present law, com bined with the languishing condition of some of the great int - Orests of the country, caused by over importations and conse quent depressed prices, and with thq fail ure in obtaining a foreign market for our increasing surplus of breadstuffs and pro visions, has induced me again to recom• mend a modifcariou of the existing tariff.