A
own safety, we can ever become indifferent to
her fate.
It may be that the Mexican govei'ii'ment and
people have misconstrued or niisuiidci'stood our
forbearance, and our objects, in desiring to con-
clude an amicable adjustment of the existing dif
ferences between the two countries._ They
may have so iposed that we would submit: to
terms degrating to the nation; or they may
have drawn false iiifercnces from the supposed
division of opinion in the United States on the
‘subject of‘ the war, and may have calculated to
gain much by protracting it; and, indeed, that
we might ultimately abandon italtogctlier, witli-
out insisting on any indemnity. tci'ritorial or otli-
erwise. \Vhateve;r in:-iy be the false impres-
sions under which they have acted. the adop-
tion and prosecution of the energetic po-icy pro-
posed must soon uiideccive them.
In the future prosecution of the war, the ene-
my uiust be made to feel its pressure more than
they have heretofore doiio. At its commence-
ment, it was deemed proper to conduct it in a
spirit of forbeara'nco and liberality. \Vith this
end in view, early measures were adopted to
conciliate, as far as a state of war would permit,
the mass ofthe Mexican population; to con-
vince them that tlie.war was waged not iigaiiist.
their faitlilcss govcriiuient. which had’ com-
hienced hostilities; to remove from their -minds
the false impressions which their designing and
iiitcrested rulers had artfully attempted to uiake,
that the war on our part. was one of conquest,
that it was a war against their l'0llgl(m and their
churches, which were to be dcsecratcd and over-
thrown; and that their rights of person and pri-
vate property would be violated. To remove
these false impressions, our commanders in the
field were directed scrupulously to respect their
religion, their churches, and their church prop-
erty, which were in no manner to be violated;
they were directed also to respect the rights of
- persons and property of all who should not take
up arms against us.
Assurances to this effect were given to the
Mexican people by Major General Taylor, in a
proclaiuatiou issued in pursuance ofiustructions
from the Secretary of \Var, in the month of
June, 1846, and iigaiii by Major General Scott,
who acted upon his own convictions of the pro-
priety of issuing it in a proclamation of the 11th
of May, 1847. .
In this spirit of liberality and conciliation,
and with a view to prevent the body of the
Mexican population from taking up arms
against us, was the war conducted on our part.
Provisions and other supplies fur.-iislied to our
army by Mexican citizens were paid for at fair
and liberal prices agreed upon by the parties.
After the lapse ofa few months, it became ap-
parent that these assurances, and this mild
treatment, had failed to produce th‘e desired
effect upon the Mexican population. \Vliile
the war had been conducted on our part ac-
cording to the most humane and liberal princi-
ples observed by civilized nations, it was waged
in a far dilfei'oiit spirit on the part of Mexico.
Not appreciating our forbearance, the Mexi-
can people generally became hostileto the Uni-
ted States. and availed themselves of every op-
portunity to commit the most savage excesses
upon our troops. Large numbers of the popu-
lation took up arms, and. engaging in guerilla
warfare, robbed and murdered in the most crii-
el manner individual soldiers,_ or small parties,
whom accident or other causes had separated
from the iuain body ofour army’; bands of gu-.
erilleros and robbers iiivestcdilie roads, haras-
sed our trains, and, wiienevcr it was in their
power, cut off our supplies.
The Mexicans liavirig thus shown them-
selves to be wholly incapable of appreciating
our forbearance and liberality, it was deemed
proper to change the inaiiiier of conducting the
War, by making them feel its pressure accord-
ing to the usages observed under similar cir-
cumstances by all othc-i‘ civilized nations.
Accordingly, as early as the twenty-second
of September, 18-16, iusti'ucti.ons were given
by the Secretary of \Var to Major Gen. Tay-
lor to “draw supplies ” for ()l1l'.al'l11_')’ “froni
the enemy, without paying for them, and to
require contributions for its support," ifin that
way he was satisfied he conlt “get abundant
supplies for his forces.” In directing the ex
ecution of these iiistruciioiis. much was neces-
sarily lcft to the discretion of the commanding
officer, who was best acquainted with the cir-
cumstances by which he was surrounded, the
wants of the army, and the practicability of en-
forcing the measure.
Gen. Taylor, on the t\vonty—sixth of Octo-
ber, 1846, replierl,'from Monterey, that, “ it
would have been impossible hitherto, and is so
now, to sustain the army to any extent by forc-
ed contributions of money or supplies.” For
the reasons assigned by him, he did not adopt
the policy of his instructions, but declared his
readiness to dose, *‘ should the army, in its fu-
t_ure operations, reach a portion of the country
which may be made to supply the troops with
advantage.” He continued to pay for tho arti-
cles of supply which were drawn from the on-
emy's country.
Similar instructions were issued to Major
General Scott on the third of April, 1847, who
replied, from Jalapa, on the tliirtcenth of May,
1847, that, if it be expected that “the army ‘is
to support itself by forced contrlbutioiis levied
l§lOl'l the country, we may ruin and cx:ispei'ate
t e inhabitants, and starve oursolve.~.” The
same directions was given to him that had been
to Gen. Taylor in this respect. Gen. Scott,
for the reason assigned by him, also continued
to pay for the articles of supply for the army
whicli were drawn from the enemy.
After the army had reached the heart oftbe
most wealthy portion of Mexico, it was sup-
posed that the obstacle which had before that
time prevented it, would not be such as to
render impracticable the levy of. forced contri
butions for its support; and on the first of Sep-
tember, and again on the sixth of October,
1847, the order was repeated in despatclies
addressed by the Secretary of “far to Gene-
ral Scott, and his attention was again called to
the importance of making the enemy bear the
burdens of the war by requiring them to fur-
nish the means of supporting our army; and
liowas directed to adopt this policy, unless, by
doing so, there was danger of depriving the ar-
my of the necessary supplies. Copies oftliesc
despatchcs were forwarded to Gen. Taylor for
his governmen't.
On the thirty-first of March last, I caused
an order to be issued to our military and naval
commanders to levy and collect ri military con-
tribution upon all vessels and ln0l'cl1anLlise
which might enter any of the ports of Mexico
in our military occupation, and to apply such
contributions towards dcfraying the expenses
of the war. By virtue of the right of conquest
and the laws of war, the conqueror, consulting
his own safety or convenience, may either ex- '
"elude foreign commerce altogether from all
such ports, or permit it upon such terms and
>C)[l(lil.lODS as he may prescribe. Before the
principal ports of Mexico were l)lO(:l{:l(lG(l by
our navy, the revenue derived from iinpost du-
ties. under the laws of Mexico, was paid into
the Mexican treasury. After these ports had
fallen into our military possession, the blockade
was raised, and commerce with them perniit-
ted upon prescribed terms and conditions.—
They were opened to the trade of all nations
upon the payment of duties more moderate in
"their amount than those which had been previ-
ously levied by Mexico ; and the revenue,
which was formerly paid into the llvfcxican
- ic relatibiis with the Papal States.
N.
treasuiy, was directed to be" collected by our
military and naval officers, andapplied to the
use of our a.i:i_ny and navy. Care was taken
ibatlhc olliccrs,soldicrs and sailors of our army
and navy should be exempted from the operalioiis
oftlie order; and as the uicrchaiidise iuiported up-
on wliicliitlic order operated inustbe consumed by
Mexican citizeiis,'tlie contributions exacted were,
in effect, the seizure of them to oiirown use. In
directing this 1lIea..~'l1l‘e. the object was to compel
the enemy to contribute, as far as practicable to-
wards the expenses oftlie war.
For the amount of coiitributioiis wliich have
been levied in this form. I refer you to thenc-
coiiipanviiig reports of the Secretary. of ‘Var. and
of the Secretary ofihe Navy, by wliicli it appears
thata sum exccediiig half ii iiiiliioii of dollars has
bean collected. '
"Fliis amount would undoubtedly have been
miicli larger but for the difliculty of keeping opcii
communications between tliecoast and the iiilcrior,
so as to enable the owners of the uicrcliandise im-
ported, to traiisport and vcnil it to the iubabitaiits
of the country. It is confidently expected that this
difiiculty will. to a great extent, be soon removed
by our llICl'C2lSC(.l forces, which have been sent to
the field
l‘lIe:isiii'csbave recently been adopted, by which
the iiiteiiizil as well as external revenues of Mexi-
co. in all places in our inilitary occupation. will be
seized and appropriated to the use of our aruiy
and navy.
The policy of levying upon the enemy contri-
butions iii every forimcoiisistciilly with the laws
of nations, which it may be practicable for our mil-
itary couiiiiaiidcrs to adopt, should, in my judg-
ml‘.l1l., be rigidly eiiforccd. and orders to this effect
have accordingly been given. By such a policy.
at the .-iime time that our own treasury will be re-
licved froui a heavy drain, the illexican people will
be made to frel the burdens of the war, and, con-
sulting their own interests, may be induced the
more readily to require their rulers to accede to a
just peace.
.-\l'ier the adjournment of the .last session of
CUllgl‘€SS, events traiispircd in the proscculioii of
the war which, in my judgiiicnt, required a great-
er numbcr of troops in the field than had been aii-
ticipated Tiic slrciigtli of the army was accor-
dingly lIl(‘l'C:l$e(.l by “accepting” the services of
all the volunteer forces aiitliorizcd by the act of
the Itltli of Lllay, 1846, witliout pulling :1 coIi.~:truc-
tion on the act, the cori'cctnoss of which was scri-
oii.-rlyqiiestioiicd. The volunteer forces now in
the field. with those which have been "‘acccptcd,’,
to " serve for twelve iiiontlis,” and were r.liscliarg-
ed at ilic cud oftlieir term of service, cxliaust the
fifty thoiisaml iiicu aulliorizcd by that act Had it
been clear that a proper construction of the act
warraiiteil it, the services ofan additional number
would have been called for and accepted; but
doubtexi.-*tiiig upon that point. the power was not
exercised. ‘
It is deemed iniportaiit that Congress should,
at an early period cf their session. confer the au-
iliotity llltil. an additional regular force to serve du-
ring the war with Mexico‘, and to be discliiirgeil
upon the conclusion and ratification of a treaty of
peace. I invite the attention of Coiigi-ess to the
views pi'eseuicd by the Secretary of Wariii his re-
port upon llli.'~',~‘lll1_jCCl.
I reconiiiiciid, also, that authority be given by
law to call for and accept the services of an addi-
tional nuiiihcr of V'()lll!lleE‘.l‘F. to be exercised at
such time and to such cxteiitas the euiergeiicies of
the service may rcquirc.
Iii pi'o:-cciitiiig the war wiili Mexico, whilst the
utuio-'1 care has been taken to avoid every just
cause of complaint on the part ofneiitral nations.
and none has been given. liberal privileges have
been _'Zl’5llllell to their commerce in the ports of the
enemy in our niiliiai'_y occupation.
The diliiculty with the Bra’/.illi:iii §I'0Vel‘llll1(3I1l.
which at one limo tlircatencd to interrupt the
friciirll_v relaliolis between the two couiilrics, will
I trust, be spced:l_v adjusted. I have received iii-
foruiatiou that an envoy cxtr:iorI.liiiar_y and minis-
ter plcuipolcntiary to the U. S. will be shortly ap-
pointed by his liiipci'ial illajcsty: and it is hoped he
will come iii.-triicicd and prcprirerl to adjust the re-
iiiaiiiiiig clifl'crciices between the two governments
in a nianuer acceptable and honorable to both. In
the uieanlinic, I have every reason to believe that
iio'.hiii_:__v will occur to interrupt our amicable rela-
tions with Brazil.
It has been my constant effort to maintain and
cultivate the most intimate relations of ll‘lL‘ll(‘l.~‘l1l[)
with the iiiilepcndciit powers of South America;
and this policy has been attended with the happi-
r‘:=l l'(‘.Sl1llS. It is true. that Ilie sctileineut and pay-
ment of maiiyjust claims ofAnicrican citizei-is
:i_£:7iinst tliesc iiatious have been long dcl.'ive.d.--
The pcciiliar position in which they have been
placed, and the desire on the part of my predeces-
sors, as well as iiiyself, to grant them the lituiost
indulgence, li:-ivo liiilicito prevented the claims
from bciiijz urged in a ui:-inner demanded by strict
justice. Tlictiuie has arrived when tlicv ouglitto
be finally adjusted and liquidated, and efforts ‘are
now llldlillig for that purpose.
It is proper to inform you that the government
of Peru has in good faith paid the first two instal-
mcuis of the indemnity of' thirty thousand dollars
each, and the greater portion of the iiitercstdue
illL£~i'C0ll, in execution of tlic coiivciilioii between
that govcriiuiriit and the United Stale-‘, the ratifi-
catious of which were excliiiiigcrl at Lima on the
thirty-first of October, 1846. The Attorney Geno-
ral of the United States. early in August last, coiii-
pletcd the adjudication of 'tlic cliiiins under this
coiiveufioii. and made his report thereon. in par-
suance ofilie act oftlie ciglitli of August, ]846.——
The sums to which the claimants are i'especli\‘ely
cntizlcd will be paid on demand at the treasury.
[invite the 6Fll‘l_V attention of Coiigre;-'s to the
preseiit condition of our citizens in China. , Under
our treaty with that power, American citizens ai'e
withdrziwii from the jurisdiction, whctlier civil or
criminal, of _ihe Chinese goverunicnt, and placed
uiider that of our public functionaries in that couii-
try. By tlic.-‘e alone can our citizens be tried and
puni.-‘lied for the coinmissioii ofauy crime: by
these alone can qucstioiis be decided between
them, involving the right of person and property;
and by these alone can contracts be ciiforccd. into
which they may have entered with the citizens or
subjects offoreigii powers. The iiicrclimit vessels
of the United States lyiiig iii the waters ofllie fivc
ports 0fCliiiia open to foreign commerce are under
the exclusivejurisdiction of officers. of their own
govcrnm_eiit. Until Coiigrcss shall establish coin-
petairt uiliiiiials to try and punish crimes. and to
exercise _piri.<diction in civil cases in China. Amer-
ican cilizciis tlirire are subject to no law whatever.
"*Criuics may be committed with impunity. and
debts ma_v be contracted without auv means to en.
force their payment. Iiicoiivciiieiicbs have already
resulted from the omission of Congress to levjglgue
upon the subjpct, and still greater are appi':hend.
ed. The British authorities in China have alreadv
complained that this govcriiinciit has not provideil
for the puni.-'l1irient of crimes, or the ciiforceinciit
ofcontracis against American citizeiis in tliatcouu-
try, whil.-.t their government l-ias established tribu-
nals by which an :\nicricaii citizen can recover
debts due from liriii.-th subjects.
Acciistoiiicd as the Chinese are to summary jus-
tice, they could not be made to coinpmheiirf vvhv
criminals who are citizciis of the Uiiilcd State's
should escape with iinpuuity, in violation of treaty
oliligritioiis, whilst the piiiiisliuieiit ofa (.‘hine,.~e,
who had coiiiniittcd any crime, against and Ameri-
can citizen, would be rigorously exacted. Indeed,
the consequeiices might be fatal to American citi-
zens in China, should a flagrant crime he commit-
ted by any one ofthcm upon :rCliinesc, and should
trial and piiuisbnicut not folldw according to the
requisitions of the treaty. This inight disturb, if
not destroy, our friendly relations vvitb that em-
piro, and cause an interruption of our valuable
comineree.
Our treaties with the Sublime Portc, Tripoli.
Tunis, Morocco. and Muscat, also require the leg-
islation ol'Coiigress to carry them into execmim,
tliough the liecessily for immediate action may iiof
be so iirgent as in regard to China;
The Secretary of State has submitted an esti-
mate to defray the expense of opening diplomat-
The interests
iiig political events now in progress in these
States, as well as a just regard to our couiinercial
interests, have, in my opinion, rendered such a
iiicasiirc highly. expedient. ‘
Estimates ‘also have been submitted for the
outfits and salaries o‘f'chai'gcs d’afl'aircs to the re-
‘ publics of‘ Bolivia, Gtiateinala, and Ecuador.—-
T_h0 .m=1nif.est_impor_t:ince of cult.ivj.1ting the most
friciidlyrelations with all_thc independent States
upon _Il'1lS continent has induced me to recom-
mend appropriations necessary for the mainte-
nance of‘ these missions. - _ _
I 1‘.3CO[I1I'n_<'.‘fl(l. to Congress that an appijopriatioii
be made, to be paid to_ the Spanish government
for the purpose of distiabuting among the claim-
ants in “the Amistad case.” I entertain the
conviction that this is due to Spain under the
treaty of the 20th of‘ October, 1795; and moreo-
ver, that, from the earnest manner in which the
claim continues to be urged, so long as it shall re-
main unsettled, it we ,a source of‘ irritation and
discord between the two countries, which may
prove highly prejudicial to the interests of _tlic
United States. -Good policy, no less than faith-
ful compliance with our treaty obligati0_nS, N3-
quircs that the iucoiisiderable appropriation de-
manded should be made.
A detailed statement of ilieconclition of the
finances will be presented in the annual report of
the Secretary of the Treasury. The imports for
the last. fiscal year, ending on the 20111 of June,
18-17, were of’ the value of one hundred and forty-
six million, five hundred and forty-five thousand,
six hundred and tliii‘ty-eiglitdollars, of ivliicli the
amount exported was eight million, clcvcn thou-
sand, one liundred and fifty-eiglitdollars, leaving
one hundred and thirty-eight million, tivc-hun-
dred and tliirty-four thousand, four hundred and
eighty dollars in the country for domestic use.— -
’I‘iic value of the exports for the same period,
was one hundred and fifty.eigbt million, SIX 111111‘
drcd and forty-ciglit thousand, six hundred and
twenty-two dollars; of which one hundred and
fifty uiilliou, six hundred and Iliirt_v-seven thou-
sand, four hundred and sixty-four dollars, "consis-
ted of domestic productions, anél fieight njjlltilorli,
eleven thousand, one hundred an fty-eig t o -
lars, of foreign articles
The receipts into the treasury for the same pe-
riod amounted to twenty-six million, tlirec liun-
dred and forty-six thousand, seven hundred and
ninety dollars and thirty-seven cents, of which
there was derived from customs, twenty-three
million seven hundred and forty-seven thousaiid,
elgl1lll1l1!1(ll'(3Cl and sixty-four dollars and sixty six
cents; from sales of public lainds,‘lwo million
four ,-liundred and iiinefy-eiglil thousand three
hundred and thirty-five dollars and twenty cents;
and from incidental and miscellaneous sources,
one hundred tlioiisand five hundred and seventy
dollars and fifty-one cents. 'l‘lie last fiscal year,
during which this amount was received, embrac-
ed five months under the operation of the tariff‘
act of 18-12, and seven months during vvhlichftlio
lariffact of 18-16 was in force. During tie ive
months under the act of 184-2, the amount receiv-
cd from customs was seven mill.iou eight liunclrel
and forty-fivo tliousaiid three hundred and six
dollars and ninety cents, and during the seven
months l.1n.'l4':l' the act of 1816 the amount receiv-
ed was fifteen million nine hundred and five
thousand five. hundred and fifty-seven dollars and
scveiity-six cents.‘
The net revenue from customs during the year
ending on the first of December, 1:516, being the
last year under the operation of the tariff act of
18-12, was twenty-two million nine hundred and
seventy-one thousand four hundred and three
dollars and ten cents ; and the net revenue for
customs during the year ending on the first of
December, 18-17, being llic first year under the
operation of the tariffact of 18-11‘), was about thir-
ty-onc million five hundred tlioiis-and dollars;
being an increase of rcvemie for the first year
under the tariff‘ '.1Cl10f 1846, of more than eight
milllion five liundred tliousaiid dollars overtliat of
the ast rear under the tariffof I5-1:2.
’I‘he expenditures during the fiscal year ending
on the thirteenth of June last, were fifty-nine
million four hundred and fifty one thousand one
hundred and sevciity-scvcn dollars and sixty-five
cents; of which three million five liundred and
lvvcuty-two tliousaud and eiglily-l.wo dollars and
l'hirl_v—scvcn cents was on account of‘ payment of
principal and interest of the public debt, inclu-
ding treasury notes redeemed and not funded.-,—-
'I‘lic expenditiii-cs, exclusive of payment of‘ pub-
lic debt, were fifty-five million nine hundred and
twenty-nine thousand and ninety-five dollars and
twenty-eight cents.
It is estimated that the receipts into the frea-
sury for the fiscal year ending on the thirteenth
of-June, 1918, including the balance in the trea-
sury on the first of July last, will amountlo
forty-two million eight hundred and eighty-six
thousand five hundred and forty-five dollars and
ci;:hty cents, of which tliirty-one million, it is
estimated, will be derived from customs; three
million five hundred thousand from the sale of
publiclauds; four liiindred thousand from inci-
dental sources, including sales made by the So-
licitor of the 'I‘reasur_v; and six million two bun’-
drcd and eighty five thousand two hundred and
niuety—four dollars and fi 1:i_v-five cents from loans
already autliorized by law, which, together with
the balance in the treasury on the first of July
last, make the sum estimated. _
The expenditures for the same period, if peace
with Mexico shall not be coiicludecl, and the ar-
my shall be increased as is proposed, will amount
including the necessary payments on account of
principal and interest of the public debt, and trea-
sury notes, to fifty-ciglit millionsix hundred and
fifteen thousand six hundred and sixty dollars
and seven cents.
On the 1st oftlie present month, the amount of
the public debt actually incurred, including trea-
sury notes, was forty-five million six hundred and
fifty nine tlious-and six hundred and fi1't_v-nine
dollars and forty cents. The public debt due on
the 4th of’ .\'larch 1:45, including treasury notes,
was seventeen million seven liundred and eighty-
eight tliousand seven hundred and ninety-nine
dollars and sixty-two cents; and consequently
the addition made to the public debt since that
time is twenty-seven million eiglit hundred and
seventy thousand eight hundred fifty nine dollars
and seventy-eiglit cents. ‘
Of‘ the loan of twenty-three million, authorized
by the act of the ‘.2‘3lh of January, 1846, the sum
of five million was paid out to the public credi-
tors, or exchanged at par for specie; the remain-
ing eighteen million was offered for specie to the
highest bidder not below par, by an advertise-
ment issued by the Secretary of the ’I‘reasury,
and published from the 9th of February until the
10th of April, lS«l7, when it was awardell to the
several higliestbiddcrs. at premiums varying from
one-eiglith of one per cent. to two per cent above
par. The premium has been paid into the trea-
sury, and the sums awaided deposited in specie
in the trcasnr_v as fast as it was required by the
wants of the Government.
To meet the expenditures for the remainder of
the present and for the next fiscal year, ending
on the thirteenth of June, 1849, a further loan,
in aid of the ordinary revenues of the government,
will be necessary. Retaining :1 sullicient surplus
in the trcasur_v, the loan required for the remain-
der oftbe present fiscal year will be about eigh-
teen million livc liundred lliousand dollars. If
the duty on tea and ‘coffee be imposed, and the
graduation of the price of the public lands shall
be made at an early period of your ccssioii, as re-
commended, the loan for the present fiscal vcar
may be reduced to seventeen millions of‘ dollars.
The loan may be further reduced by wlmiever
amount of expenditures can be savcd'by militarv
contributions collcctcd in Mexico. The mos}
vigorous measures for the augmentation of these-
contributions have been directed, and a very con-
siderable sum is expected from that source. Its
amount cannot, however, be calculated with any
certainty. It is recommended that the loan to be
made he ai_1tliorizcd upon the same terms, and for
thc same time, as that which was authorized un-
der the provisions of the act ofthe twenty-eighth
of January, 1847. .
. Should the war with Mexico be continued un-
til the thirteenth of June, 18-'19,-it is estimated
that a further loan of twenty million five liundred
tliousaiid dollars will be required for the fiscal
year ending on that day, in case no duty be im-
posed on tea and coffee, and the public lands be
not reduced and graduated in price, and no mili-
tary contributions shall be collected in Mexico.
It a duty on ten and coffee be imposed, and the
lands be reduced and graduated in price, as pro-
posed, the loan may be reduced to seventeen
million of dollars, and will be subject to be still
further reduced by the amount of the military
contributions which may be collected in Mexico,
If 15 “°t Pl‘0l70-‘led. however, at present, to ask
Congress for aiitliority to negotiate this loan for
the next fiscal year, as it is hoped that the loan
asked for the remainder of the present flssal year,
aided by ‘military contributions which may be
collected in Mexico, may be sufficient. If‘, con-
tmrj’ to lny expectation, there should be a acces-
sity for it, the fact will be communicated to Con-
gress in time for tlieiraclicn during the present .
session. ‘ In no event will -a sum exceeding six
million of dollars of this amount be needed before
the inectiiig ofthe session of Congress in Decem-
ber, 1848..
The act of the thirtieth of July, 18-16, “re-
ducing the imports,” has been in force since the
first of'Decenibei' last; and I am gratified to state
that all the beneficial effects which were antici-
pated from its operation have been fully realized.
The public revenue derived from customs during
the year ending on the first of December, 1.9117,
cxcccdc by more than eiglit millions of dollars
the amount received in the preceding year under
the operation of the act of 18-'12, which was su-
perseded and repealed by it. Its effects are vis-
iblc in the great and almost uncxainplcd prosper-
ity which pr:-:vails in every brrmcli of busiuc-ss.
I-Vhilc the repeal of the proliibitary and re-
slructivc duties of the act of 18-12, and the sub-.
stituting in their place of reasonable revenue
rates livicd on articles iuipcrled according to
their actual value, has increased tliercvciiue and
augmented our foreign trade, all the great infur-
ests of the country have been advanced and pro-
muted. °
The great and iinporl:-ir.t interests of agricul-
turc, which had been not only too much iicglecl.-
cd, but actually faked under l.lic protective poli-'
cy for the benefit of other intcrc-sis, have l):.‘.z”:11
rclcived of the burdens wlii_.bh that policy im-
posed on them; and our f'-.irmcrs and planters,
under a more just and liberal comiucrci-..l policy
are finding new and profitable markets abroad for
their augincntcd produrts.
Our commerce is rapidly increasing, and is ex-
tending more widely the circle of international
exchanges. Great as has been the increase of
our imports during the past year, our exports of
domeslic products sold in forraign marl-cots have
been still greater.
Our navigation interests is eminently prosper-
ous. The nuinbt-1' of vessels built in the United
Stalcs has been greater than during any preced-
ing period of cquril length. Large profits have
bccn derived by those who have conslructcd as
well as those who liave navigated them. Should
the ratio of increase in the number ofour mer-
chant vessels bc progressive, and be as great for
the future as during the past year, the time is
not distant when our tonnage and commercial ma-
rine will be larger than that of any other nation
in the vorld
W hilst the intei-esls of agricultui':~., of coin-
merce, and of navigation have been eiilaigcd and
invigorated, it is highly gsatit'ying to observe that
our manufactures are also in a prosperous condi-
tion. None of the ruinous effects upon this in-
tcrcst which were appmlieiided by some, as the
result of the opcralion of the revenue system es-
tablislied by the act of 15:16, have been expe-
rienced. On the contrary the number of manu-
facfories, and the amount of capital invested in
them, is steadily and rapidly increasing, afi_‘ording
gratifying proofs that American enterprise and
skill employed in this branch of domestic indus-
try, with no other advantages than those fairly
and incidentally accruing from a just system of‘
revenue duties, are abundantly able to meet suc-
cessfully all competition from abroad, and still
derive fiiir and rcnumerating profits.
While capital invested in II1aI1l1f11ClUI‘(’.3 is
yielding adequate and fair pm.-lit.-‘. under the new
system, the wages of labor, whether emplovcd in
manufactincs, agriculture, commerce, or naviga-
lion, have been augmented Te toilimr millions,
whose daily labor furnishes the supp _v of food
and raiment, and all the necessaries and coinfoi ts
of life, are receiving hig'liei' wages, and more
steady and permanent CII1pl0y1‘ncnl,tl13ll’l in any
other country, or at any previous period of our
own history.
So successful have been all branchrs of our in-
dustry, that a foreign war, vvliich gencrall_v dimin-
ishes the resources of a nation, has in no essen-
tial dcegree retarded our onward progress, or
clicckcd our general prosperity.
With such gi'atil’_ving evidences of prosperity,
and of the successful operation of the rev-
cniic act of 1816, every consideration of public
policy recommends that it shall remain unchaiig-
ed. It. is hoped that the sf/stein of iinpost duties
which it established may be regarded as the per-
manent. policy oftlie coiiiitifv, and that the great
interests affected by it may not again be subject
to be injuriously disturbed, as they have hereto-
fore been, by frequcnl: and sometimes sudden
changes.
For the purpose of increasing the revenue,
and without changing or iiioilifyiiig the rates im-
posed by the act of 1816 on the dutiable I11'llC.l(‘.S
embraced by its provisions, I again recommend
to your favorable consideration the c_xpc(liency
of levying a revenue duty on lea and cofl'ee--
The policy wh_icli exempted these articles f.'o‘n
duty during peace, and when the revenue to be
derived from them was not Il€C(lC(l, CETLSOS to ex-
ist when the country is engaged in war, and re-
quires the use of all its available resources. It
isa tax which would be so gcaicrally diffused
ainong; the people, that it would be felt oppres-
sively by none, and he 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 ten and coffee.
ltis estimated that three millions of dollars
would be derived annually by a moderate duty
imposed on these articles.
Should Congrccss avail itself of this additional
source ofrevenue, not only would the amount of‘
the public loan rendered necessary by the war
with Mexico be diminished to that extent bul,the
public credit, and the public confidence in the
ability and determination of the government to
meet all its engagenienls promptl_v, would be
more firmly established, and the reduced amount
of the loan which it may be necessary to nego-
tiate could probably be obtained at cheap .r rates.
Congress is, therefore, called upon to oetariniiic
whether it is wiser to impose the war duties rec-
ommend, or, by omitting to do so, iacrease the
public debt annually three millions of" dollars,
so long as loans slicll be required to prosecute the
war, and afterwards provide, in some other form,
to pay the semi animal interest upon it, and iil-
tiinately to extinguish the principal. If‘, in {lil-
dition to these duties, Congress sliculd graduate
and reduce the price of such of the public lands
as experience has provedwill not—comniand the
price placed upon them by the government, an
additional annual income to the Tl‘C€t.5lll‘y of be-
tween half a million and a million of dollars, it
is estimated, would be derived from this source.
Should both measures receive the sanction of
Congress, the annual amount of’ public debt ne-
cessary to be contracted during the continuance
of the war would be reduced nearly four millions
of dollars. 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 con-
tracted by-it shall be discharged. The amount
of the public debt to be contracted should be
limited to the lowest practicablesum, and should
be extinguished as early aftci the condlusion if
the war as the means oftlic trcasur_v will permit.
\Vith this view, it is recommended that, as
soon as the war shall be over, all the surplus in
the treasury, not needed for other iiidispeusable
objects, shall constitute a siiil-.ing fund, and be
applied to the purchase ofthe funded debt, and
that aulliority be conferred by law for that pur-
pose. A
The act of the sixth ofAugust, 1846, “ to es-
tablish a wareliousing system,” has been in ope-
ration 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. \Vhilst it has ten-
ded to enlarge commerce, it has been beiicficiid
to our manufactures, by dimiuisliing forced sales
at auction of foreign goods at low prices, to raise
the duties to be advanced on them, and check-
ing fluctuations in the market. The system,
although sanctioned by the experience of other
countries, was entirely iiewin the United States,
and is susceptible ofimprovement in some of its
provisions. The Secretary of the Treasury,
upon whom was devolved large discretionary
powers in carrying this messurc into effect, has
C0lleCl~6da and is now collecting, the practical re-
sults of tl e system in other countries, where it
-has long bcen establ shed, and will report at an
early period of your session such fartlicr regula-
tions suggeitadby the investigation as r.n_ay ren-
der it still more effective and bcn.n.ficial..
By the act to “ provide for the better organi-
zation ofthe ’l‘i'ea.-ury, and‘ for the collection,
safe keeping and disbursement of the public rev-
enue,” all banks were discontinued as fiscal
agents of the governinciit, and the paper cur-
rency issued by them was no longer permitted
to be received in payment of public duos. '
The Constitutional 'l‘i-easury created by this
act went into operation on the 1st. of January
last. Under the system c.-ntublislicd by it, the
public moneys hiive been collected, safely kept
and disbursed by the direct: agency of ofliccrs of
the Govcrnmeiitin gold and silver; and transfers
oflarge amounts have been iriadc from points of
collections to points of’disbui'soiiicnt, wit hour. loss
to the Treasury, or injury or inconvenieiico lo
the lradeof the country. -
\Vhile the fiscal operations of the government
have been conducted with regularity and case,
under this systoin, it has had a salutary effect. in
the papc-.i'cui'i'c-iicy issued by the banks which
(‘..'-€lSll'll1ClC1'Sl2ll0 clini't.crs. Requiriiig,:isitdoes,
all dues to tlie govci'iimcnt. to bu paid in goldaud
silver, its effect is to rc.-train exttessivo issue.-‘ of
bank paper by the bnul~;s dispi'o;:ort.ioncd to the
specie in their vaults, for the l'(‘:’.S0ll that the-y
are at all times liable to be called on by the
liolders of their notes for their redemption, in
order to obtain specie for the payment of duties
and ntliei‘ public dues. The banks, therefore,
must keep their busint-ss within prudent limits,
and be alwa_\,-'5 in a condition to meet such calls,
or run the hazard of being coiiipollcd to suspend
specie payments. and be ll1f:‘.l‘('l)_)" oi.-rcrcditod.
The anioiint. of S})()('lC iniporied.into the Uni-
ted States during the last fiscal year was twen-
ty four million one lll1t:Lll'(‘.d and twenty one
thousand two hundred and eiglity nine dollars;
of which there was detained in the counlr_'y
twenty two million two liundred and scvoiily six
thousandoiie hundred and sevciity dollars. Had
the former financial system pi°c~\'.".3.lo.d, and the
public moneys been placed on Gr-.;‘:o:-it in banks,
nearly the whole of this tll‘.‘.()I1‘.”.i would liavc
gone into tlioir vaults, not to to iii-:‘()V\‘I'1 into cir-
culation byihem, butfo be \Viil:l£('?l(l from (lie
hands of the people as a 'Cl:l'T£'.la(7_Y, and made
tholiasis of new and enoi-mous issues of bank
paper. A large proportion of the specie impor-
ted has been paid into the ti'easiu'y for public
dues; and after having been to a. great extent.
recoiiied at the iniiit. has been paid out to the
public creditors, and gone into circulation as a
currency among the people. Tlic amount of
gold and silvei'co'.n now in circulation in the
country is larger than at any former period.
The finaiiciiil sysleni cstalili.~licd by the
constitutional treasury has been, thus far, eni-
incntly successful in its operations; and I recom-
mend an adherence to allits essential provisions,
and especially .t.o that vital provision which
wholly separates the govo_riimci;t from all con-
x
from all revenue receipts.
, In some of its details, not involvingits general
principles, the S_\'Sl(‘.ll1 is defective, and such
auiendinents as are deemed iuiporttiiit, were set
fortli iii the last annual report of the Secretary
of the 'I‘rcasury; These aiiieudiiicritsai'o again
rccoiiimeiidcd to the early and favorable coiisidc
rations of Congress.
During the past your, the coinage at the mint
mid its branches has cxccmled twenty iiiillioiis
nftl0llil1‘S.- This has consisted chiefly in conver-
ting tlio coins of foreign countries into Ameri-
can coin. .
The lzii-go;-t amount. imported has been receiv-
ed at New York ; and if a branch mint was cs-
tablishcd at that city, all the foreign coin receiv-
ed at that port could at once be convwi-t:‘-(l into
our own coin, without the expciisc, 2 r.=.=:, and do-
lay ofl:i'aiispoi‘t:iiig it totlic.iri'zi;l lii;'1.'::2;t purpo:-to,
and the amount. rccoiucd would la:- much larger.
Experience has proved ll1lil.liiZ'i:‘.l.‘.Zll coin, and
especially foreign gold coin, will not circulate
(‘?x’lCl'lSlV€*.l_\-' as a Clll‘l'U1:(:y among the people.
The iiiipomiiit measure of c:-:1:-iidiiig our .<:pecie
circulation, both ofgold and silver, and of dif-
fusiiigit._aiiiong our people, can only be effects-.l
by converting such foi'c':gn coin into Aiiic-.r'scan
coin. I i'cpc.at the mcoiiiiiicnilulioii coiitaizic-'.l
in my last aiiuual iricssagc fortlic cstiibiisliiiicnt
ofa brancli oftlic mint of the United States at
the city of New York.
All the public lands which had been surveyed
and were ready for market. have been proclaiin-
ed for sale during the past year. 'I‘lie,q-.i:iii:.it_v
offered and to be ofl'cred for sale, unvler procla-
tion issued since the first. of .laiiuary last,
amounts to nine million one liundred and thirty
eight thousand five hundred and tliirty one acres.
The prosperity of the western States and terri-
tories in which these lands lie will be advanced
by their speedy sale. By withliolding them
from market, their growth and increase of pop-
our eiiterprising and nioritorious frontier popii—
scciiriug freeholds for tliemselves and their fam-
ilies.
But in addition to the general consideratioiis
which rendered the early sale of those lands
proper, it vas a leading object at this timeto dp_-
rive as large a sum as possible from this source,
and thus diminish, by that amount, the public
loan rendered necessary by the existence of a
foreign war.
It is estiiiiaizccl that no loss than ten millions
ofacres of the public lands will be surve_vcd
and be in a condition to be proclaimed for sale
during the year 1818.
In my last annual message I presented tli
reasons which, in my judgznent, 1'0n(l()i“0(l- it
proper to graduate and reduce the price Of Silcll
ofthc-public lands as have rcinained‘unsold for
periods after they had been offered for sale at
public auction.
Many millions ofacres of pUl)li(: lands lying
within the limits of several of the we.-x‘iei'o States
have been offered in lCl10l1lll."'l't-.’?l., rind been sub-
ject to sale at private eiitry ii‘-y more Llia ii twen-
ty years, and large qiini:t.i!§e..-. for more than.
thirty years, at the lowest price prescribed by
the existing law.-::,and it has been found thatthey
will iiotcommaiid that price. They must re-
main unsold and uncultivated for an indefinite
period, unless the price demanded for them by
the government shall be reduced. No satisfac-
tory rcasoii is perceived why they should belon-
ger held at rates above tl'icii' real value. Attlie
present period an additional reason exists for
iidopiing the measures recommend:-d.
VVbcn the country is engaged in a foreign war,
and we must necessarily resort to loans,it would
seem to be the dictate of wisdom that we should
avail ourselves of all our resources, mid thus
limit. the ainauut of the public indebtedness to
the lowest sum.
I recominciid that the existinglaws on the
subject of preemption rights be ainondod and
modified so as to operate prospectively, and to
embrace all who may settle upon the public
lands and make iuiprovcnientsupon them before
they are surveyed, as well as afterward, in all
cases where such settlements may be made after
the Indian title shall have been extinguished.
If the right of premption be thus extended, it
will embrace a large and meritorious class ofour
citizens. It will increase the number of small
freeholders upon our borders, who will be ena-
bled thereby to educate their children and oth-
erwise improve their condition, while they will
be found at all times, as they have ever proved
themselves to -be, in the hour of danger to their
country, among ourhardiest and best volunteer
checking and preventing an undue inflation of
ncction with banlas. and excludes bank paper
ulalioii would be retarded, while tliousiiiids of
lalion would be deprived of the oppoi'tiiiiit.y of
cases of emergency, and among the last to leave ‘
the field as long as an enemy remains‘to be en-
countered. Such a policy will also impress
these patriotic pioneer emigrants with deeper
feelings of gratitude for the parental care of
their govcriiment, when they find their dearest
interests secured to them by the permanent laws
of the land, and that they are no longer in den-
gor oflosing their homes iiud hard‘ earned im-
provements by being brought into competition
with a more wcaltliy class of purchasers at the
landsales. '
The attention of Congress was invited, at
their last. and the preceding session, to the im-
poitaiice of establishing a ’l‘erriiorial govern-
lH(‘XJt over our possessions in Oregon; and it is
to be regretted th_atflicre was no logisl.-itiou on
the subject. Our citizens who inhabit that dis-
taiit regioii of country are still left without the
protcct.ion of our laws, or any regularly oi‘ganiz-
cd governineiit. Before .tlic question of limits
and boundaries of the territory of Oregon was
definitely sctilcd, frcin the necessity oflthcir
condition, the inliabitants had rstablislied a tom-
pi ‘in-y government. of their own.
Besides the want of legal ii ulhority for con-
tinuing .~;i:ch a Goveriiuicnr, it. is wholly inade-
quiite to pr0l'c(:t them in their i-iglits of person
and property, or to secure to them the enjoyment
of the privileges of other citizens, to which they
are entitled under the constitution ofthe United
Stalcs. Tlicy should liavo the right. of suffrage,‘
be i'epi'esc.i.tcd in a Territorial lcgisli.tiii'e, and
by a delegate in Coiigi-css; and possess all the
riglits and privileges which citizens of other por-
films of the Territories of the United Suites have
bei-clcforc enjoyed, or may now enjoy.
Our judiciiil .~z_vsteiii, revenue lzzws, laws regu-
lating ll'Zl(i('. and iiitcrcour.-te with the Indian
tribes, and the protection ofour laws gciiornlly,
should be extended over them.
In addition to the iiiliabitaiits in that territory
who previously emigrated to it, large numbers of
our citizens have followed them during the
presoiit year; and it is not doubted that during
the next and subsequent years their uuinbers
will be greatly iricreascd. .
Congress, at its last session, cstablislied post
routes leading to Oregoii, and between different
points within that territory, and autliorizcd tlio ‘
cstnlilisliiiiciit of post offices at “Astoria and
such other places on the coasts of the Pacific,
within the t(‘.l'l'll()l‘_§‘ oftlie United States, as the
public llIlO1'GSiS may re-quire.” Post offices have
accordingly been establislicd, deputy postmas-
tcrs appointed, and provision niadefor the trans-
portation of the mails.
The pl'O:iCl‘VfitlOl1 of peace with the Indian
tribes residing west of the Rocky mountains will
render it prpocr that. autliorit_'y‘ should be given
by law for tlieappointmcnt of an adequate unin-
bcr of Indian agents to reside among them.
I recoinnicnd that a surveyor geiici-a‘l‘s office be
est.-iblished in that tc.ri-itory, and that public
lands be siirvnycd and brought into market ut
an early period. -
I rcconiiiiciidcd, also, that gi'aiits, upon liberal
terms. of liniitml quantities of the public lands
be made to all citizens of the United_Stat.cs who
have emigrated, or may hereafter within a pro-
.-cribed period cuiigratc, to Oregon, and settle
upon them. These hardy and iidvci:turoi.f citi-
:in:-', who have ciicoiziitcrcd he danger. and
])l'i'-'Z!l.l()l1S of a long and toilsome journey, and
iavc at lciigtli foiimi ii ii abiding place for them-
St'l\'(3S and their uiuiilie; upon the utmost verge
of oui' \vesterii limits, should be secured in the
liomcs which they have improved by their labor.
7 I refer you to the ll(‘CCY1l[)'IInyll1§{ report oftlie
.‘:'eci'i~‘.:ii'y of \Var for a detailed account of the
operations of the various braiiclics of the public
:-‘(‘-1'Vl(‘.(‘. connected 'ith the department under
his charge. The duties devolving on this do-
partincnt have liecn unusually onerous and re-
sprihsililc during the past year, and have been
iliscliargcd with ability and success.
I’acific relations continue to exist with the
various Indian tribes, and most of them manifest
a strong fricndsliip for the United States. Some
dcprcdations were committed (hiring the past
your iqcn our trains trausjrortiiig supplies for
the army, on the road between the western bor-
dor ofi":lissoui'i arid Santa Fe. These depre-
dations, which are supposed to have been com-
iniltcd by _bands from the region of Nexv-Mexico,
have been arre;-.ted by the presence of ii military .
force, ordered out for that. piirpose. Some out-
rages have been ;‘er.pciialed by a portion of the
nortliwcstci-n bands upon the weal-zer and coin-
parativcly dcfeiiceless neighboring tribes.——
Prompt measures were taken to prevent such
()C('ll1'}'Cl}CCS in l'llll1l‘€!.
Between one ai’:d_two tliorsaiid Indians, be-
longing to several tribes, have been reiuoved
during the yea r from the cast of the Mississippi
to the country allottctfto them west ofthiit river
as their pcruiaiaeiit home; and arrangcinonts
liave been made for ()tl1Pl'S to follow.
Since the trezity of 18-16 with the Clierokecs,
ilio fr-iids among them appear to have subsided,
and they have l.'(‘(:l_)l1l81110l‘8Ulilfetl and contented
tliau tlu-._v have been for iiiany years past. The
cominis:-;ioiici's, appointed in pizrsuuiice of the
act of Jluiic 27,1846. to settle claims arising un-
der the treaty of 1835-30’ with that tribe, have
execi1ledt.h0ii'dulies; and after a patient inves-
tigation, and a full and fiiir examination of all
the cases brought before them closed their la-
bor in the month of July last.
This is the foiirth board of commissioners
which lias been organized under this treaty.
Ample opportunity has been afforded to all
I! 1060 iiiierestccl to l‘v1'lZ1g forwai-d their claims,
No doubt is eiitei'i'aiucd that impartial justice
has been done by the late board, and that all
valid claims embraced by the treaty have been
considered and allowed. This result, and the
final scttlenient to be made with this tribe, under
the treaty of 1846, which will be completed and
laid before you during your session, will a_djust
all questions of couti'ovci'sy between them rind
the United Suites, and produce a state of rela-
tious with them simple, well defined and satis-
factory. -
Under llic di.-tcretionary authority conferred
by the act ofihe third of March last, the annu-
i“.ies due to the various tribes have been pad
during the present you r to the heads of families
instead of to thcircliiefs, orsuch persfms as they
might designate, as required by the laws previ-
ously existing. This mode of payment has giv-
on gciieral satisfaction to the great body of the
Indians. Justice has been done to them, and
they are grateful to the government; for it. A
few cliicfs and interested persons may object to
iliis mode of payment, but it is believed to be the
only mode of preventing fraud and imposition
from being practised upon the great body of
common Indians, constituting a majority of all
the tribes. ‘
It is gratifying to perceive that. a number of
the tribes have recently manifested an increased
interest in the establishment of schools among
them, and are making rapid advances in agri-
culturc—soine of them producing a sufiicient
quantity of food for their support and in some
cases ii surplus to dispose of to their neighbors.
The comforts by which those who have received
even a very limited education, and have enga-
ged in agriculture, are surrounded, tend gradu-
ally to draw off their less civilized brethren,
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 gratifying
account of the conditions and operations of the
naval service during -the past year. Our com-
merce has been pursued with increased activity,
soldiers, ever ready to tender their services in
and with safety and success in every quarter of
w'-'
-:4
Norwalk Chronicler