The war has not been waged with a view to conquest, but, having been
commenced by Mexico, it has been carried into the enemy's country and
will be vigorously prosecuted there with a view to obtain an honorable
peace, and thereby secure ample indemnity for the expenses of the war,
as well as to our much-injured citizens, who hold large pecuniary
demands against Mexico.
Such, in my judgment, continues to be our true policy; indeed, the only
policy which will probably secure a permanent peace.
It has never been contemplated by me, as an object of the war, to make a
permanent conquest of the Republic of Mexico or to annihilate her
separate existence as an independent nation. On the contrary, it has
ever been my desire that she should maintain her nationality, and under
a good government adapted to her condition be a free, independent, and
prosperous Republic. The United States were the first among the nations
to recognize her independence, and have always desired to be on terms of
amity and good neighborhood with her. This she would not suffer. By her
own conduct we have been compelled to engage in the present war. In its
prosecution we seek not her overthrow as a nation, but in vindicating
our national honor we seek to obtain redress for the wrongs she has done
us and indemnity for our just demands against her. We demand an
honorable peace, and that peace must bring with it indemnity for the
past and security for the future. Hitherto Mexico has refused all
accommodation by which such a peace could be obtained.
Whilst our armies have advanced from victory to victory from the
commencement of the war, it has always been with the olive branch of
peace in their hands, and it has been in the power of Mexico at every
step to arrest hostilities by accepting it.
One great obstacle to the attainment of peace has undoubtedly arisen
from the fact that Mexico has been so long held in subjection by one
faction or military usurper after another, and such has been the
condition of insecurity in which their successive governments have been
placed that each has been deterred from making peace lest for this very
cause a rival faction might expel it from power. Such was the fate of
President Herrera's administration in 1845 for being disposed even to
listen to the overtures of the United States to prevent the war, as is
fully confirmed by an official correspondence which took place in the
month of August last between him and his Government, a copy of which is
herewith communicated. "For this cause alone the revolution which
displaced him from power was set on foot" by General Paredes. Such may
be the condition of insecurity of the present Government.
There can be no doubt that the peaceable and well-disposed inhabitants
of Mexico are convinced that it is the true interest of their country to
conclude an honorable peace with the United States, but the apprehension
of becoming the victims of some military faction or usurper may have
prevented them from manifesting their feelings by any public act. The
removal of any such apprehension would probably cause them to speak
their sentiments freely and to adopt the measures necessary for the
restoration of peace. With a people distracted and divided by contending
factions and a Government subject to constant changes by successive
revolutions, the continued successes of our arms may fail to secure a
satisfactory peace. In such event it may become proper for our
commanding generals in the field to give encouragement and assurances of
protection to the friends of peace in Mexico in the establishment and
maintenance of a free republican government of their own choice, able
and willing to conclude a peace which would be just to them and secure
to us the indemnity we demand. This may become the only mode of
obtaining such a peace. Should such be the result, the war which Mexico
has forced upon us would thus be converted into an enduring blessing to
herself. After finding her torn and distracted by factions, and ruled by
military usurpers, we should then leave her with a republican government
in the enjoyment of real independence and domestic peace and prosperity,
performing all her relative duties in the great family of nations and
promoting her own happiness by wise laws and their faithful execution.
If, after affording this encouragement and protection, and after all the
persevering and sincere efforts we have made from the moment Mexico
commenced the war, and prior to that time, to adjust our differences
with her, we shall ultimately fail, then we shall have exhausted all
honorable means in pursuit of peace, and must continue to occupy her
country with our troops, taking the full measure of indemnity into our
own hands, and must enforce the terms which our honor demands.
To act otherwise in the existing state of things in Mexico, and to
withdraw our Army without a peace, would not only leave all the wrongs
of which we complain unredressed, but would be the signal for new and
fierce civil dissensions and new revolutions--all alike hostile to
peaceful relations with the United States. Besides, there is danger, if
our troops were withdrawn before a peace was concluded, that the Mexican
people, wearied with successive revolutions and deprived of protection
for their persons and property, might at length be inclined to yield to
foreign influences and to cast themselves into the arms of some European
monarch for protection from the anarchy and suffering which would ensue.
This, for our own safety and in pursuance of our established policy, we
should be compelled to resist. We could never consent that Mexico should
be thus converted into a monarchy governed by a foreign prince.
Mexico is our near neighbor, and her boundaries are coterminous with our
own through the whole extent across the North American continent, from
ocean to ocean. Both politically and commercially we have the deepest
interest in her regeneration and prosperity. Indeed, it is impossible
that, with any just regard to our own safety, we can ever become
indifferent to her fate.
It may be that the Mexican Government and people have misconstrued or
misunderstood our forbearance and our objects in desiring to conclude an
amicable adjustment of the existing differences between the two
countries. They may have supposed that we would submit to terms
degrading to the nation, or they may have drawn false inferences 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 it altogether without insisting
on any indemnity, territorial or otherwise. Whatever may be the false
impressions under which they have acted, the adoption and prosecution of
the energetic policy proposed must soon undeceive them.
In the future prosecution of the war the enemy must be made to feel its
pressure more than they have heretofore done. At its commencement it was
deemed proper to conduct it in a spirit of forbearance and liberality.
With this end in view, early measures were adopted to conciliate, as far
as a state of war would permit, the mass of the Mexican population; to
convince them that the war was waged, not against the peaceful
inhabitants of Mexico, but against their faithless Government, which had
commenced hostilities; to remove from their minds the false impressions
which their designing and interested rulers had artfully attempted to
make, that the war on our part was one of conquest, that it was a war
against their religion and their churches, which were to be desecrated
and overthrown, and that their rights of person and private 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 property, which were in no manner to be
violated; fhey 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 proclamation issued in pursuance of
instructions from the Secretary of War in the month of June, 1846, and
again by Major-General Scott, who acted upon his own convictions of the
propriety 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 furnished
to our Army by Mexican citizens were paid for at fair and liberal
prices, agreed upon by the parties. After the lapse of a few months it
became apparent that these assurances and this mild treatment had failed
to produce the desired effect upon the Mexican population. While the war
had been conducted on our part according to the most humane and liberal
principles observed by civilized nations, it was waged in a far
different spirit on the part of Mexico. Not appreciating our
forbearance, the Mexican people generally became hostile to the United
States, and availed themselves of every opportunity to commit the most
savage excesses upon our troops. Large numbers of the population took up
arms, and, engaging in guerrilla warfare, robbed and murdered in the
most cruel manner individual soldiers or small parties whom accident or
other causes had separated from the main body of our Army; bands of
guerrilleros and robbers infested the roads, harassed our trains, and
whenever it was in their power cut off our supplies.
The Mexicans having thus shown themselves to be wholly incapable of
appreciating our forbearance and liberality, it was deemed proper to
change the manner of conducting the war, by making them feel its
pressure according to the usages observed under similar circumstances by
all other civilized nations.
Accordingly, as early as the 22d of September, 1846, instructions were
given by the Secretary of War to Major-General Taylor to "draw supplies"
for our Army "from the enemy without paying for them, and to require
contributions for its support, if in that way he was satisfied he could
get abundant supplies for his forces." In directing the execution of
these instructions much was necessarily left to the discretion of the
commanding officer, who was best acquainted with the circumstances by
which he was surrounded, the wants of the Army, and the practicability
of enforcing the measure. General Taylor, on the 26th of October, 1846,
replied from Monterey that "it would have been impossible hitherto, and
is so now, to sustain the Army to any extent by forced 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 do so
"should the Army in its future operations reach a portion of the country
which may be made to supply the troops with advantage." He continued to
pay for the articles of supply which were drawn from the enemy's
country.
Similar instructions were issued to Major-General Scott on the 3d of
April, 1847, who replied from Jalapa on the 20th of May, 1847, that if
it be expected "that the Army is to support itself by forced
contributions levied upon the country we may ruin and exasperate the
inhabitants and starve ourselves." The same discretion was given to him
that had been to General Taylor in this respect. General Scott, for the
reasons assigned by him, also continued to pay for the articles of
supply for the Army which were drawn from the enemy.
After the Army had reached the heart of the most wealthy portion of
Mexico it was supposed that the obstacles which had before that time
prevented it would not be such as to render impracticable the levy of
forced contributions for its support, and on the 1st of September and
again on the 6th of October, 1847, the order was repeated in dispatches
addressed by the Secretary of War to General Scott, and his attention
was again called to the importance of making the enemy bear the burdens
of the war by requiring them to furnish the means of supporting our
Army, and he was directed to adopt this policy unless by doing so there
was danger of depriving the Army of the necessary supplies. Copies of
these dispatches were forwarded to General Taylor for his government.
On the 31st of March last I caused an order to be issued to our military
and naval commanders to levy and collect a military contribution upon
all vessels and merchandise which might enter any of the ports of Mexico
in our military occupation, and to apply such contributions toward
defraying 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 exclude foreign commerce altogether from all
such ports or permit it upon such terms and conditions as he may
prescribe. Before the principal ports of Mexico were blockaded by our
Navy the revenue derived from import duties 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
permitted 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 previously levied by Mexico, and the
revenue, which was formerly paid into the Mexican treasury, was directed
to be collected by our military and naval officers and applied co the
use of our Army and Navy. Care was taken that the officers, soldiers,
and sailors of our Army and Navy should be exempted from the operations
of the order, and, as the merchandise imported upon which the order
operated must be consumed by Mexican citizens, the contributions exacted
were in effect the seizure of the public revenues of Mexico and the
application of them to our own use. In directing this measure the object
was to compel the enemy to contribute as far as practicable toward the
expenses of the war.
For the amount of contributions which have been levied in this form I
refer you to the accompanying reports of the Secretary of War and of the
Secretary of the Navy, by which it appears that a sum exceeding half a
million of dollars has been collected. This amount would undoubtedly
have been much larger but for the difficulty of keeping open
communications between the coast and the interior, so as to enable the
owners of the merchandise imported to transport and vend it to the
inhabitants of the country. It is confidently expected that this
difficulty will to a great extent be soon removed by our increased
forces which have been sent to the field.
Measures have recently been adopted by which the internal as well as the
external revenues of Mexico in all places in our military occupation
will be seized and appropriated to the use of our Army and Navy.
The policy of levying upon the enemy contributions in every form
consistently with the laws of nations, which it may be practicable for
our military commanders to adopt, should, in my judgment, be rigidly
enforced, and orders to this effect have accordingly been given. By such
a policy, at the same time that our own Treasury will be relieved from a
heavy drain, the Mexican people will be made to feel the burdens of the
war, and, consulting their own interests, may be induced the more
readily to require their rulers to accede to a just peace.
After the adjournment of the last session of Congress events transpired
in the prosecution of the war which in my judgment required a greater
number of troops in the field than had been anticipated. The strength of
the Army was accordingly increased by "accepting" the services of all
the volunteer forces authorized by the act of the 13th of May, 1846,
without putting a construction on that act the correctness of which was
seriously questioned. The volunteer forces now in the field, with those
which had been "accepted" to "serve for twelve months" and were
discharged at the end of their term of service, exhaust the 50,000 men
authorized by that act. Had it been clear that a proper construction of
the act warranted it, the services of an additional number would have
been called for and accepted; but doubts existing upon this point, the
power was not exercised. It is deemed important that Congress should at
an early period of their session confer the authority to raise an
additional regular force to serve during the war with Mexico and to be
discharged upon the conclusion and ratification of a treaty of peace. I
invite the attention of Congress to the views presented by the Secretary
of War in his report upon this subject.
I recommend also that authority be given by law to call for and accept
the services of an additional number of volunteers, to be exercised at
such time and to such extent as the emergencies of the service may
require.
In prosecuting the war with Mexico, whilst the utmost care has been
taken to avoid every just cause of complaint on the part of neutral
nations, and none has been given, liberal privileges have been granted
to their commerce in the ports of the enemy in our military occupation.
The difficulty with the Brazilian Government, which at one time
threatened to interrupt the friendly relations between the two
countries, will, I trust, be speedily adjusted. I have received
information that an envoy extraordinary and minister plenipotentiary to
the United States will shortly be appointed by His Imperial Majesty, and
it is hoped that he will come instructed and prepared to adjust all
remaining differences between the two Governments in a manner acceptable
and honorable to both. In the meantime, I have every reason to believe
that nothing will occur to interrupt our amicable relations with Brazil.
It has been my constant effort to maintain and cultivate the most
intimate relations of friendship with all the independent powers of
South America, and this policy has been attended with the happiest
results. It is true that the settlement and payment of many just claims
of American citizens against these nations have been long delayed. The
peculiar position in which they have been placed and the desire on the
part of my predecessors as well as myself to grant them the utmost
indulgence have hitherto prevented these claims from being urged in a
manner demanded by strict justice. The time has arrived when they ought
to be finally adjusted and liquidated, and efforts are now making for
that purpose.
It is proper to inform you that the Government of Peru has in good faith
paid the first two installments of the indemnity of $30,000 each, and
the greater portion of the interest due thereon, in execution of the
convention between that Government and the United States the
ratifications of which were exchanged at Lima on the 31st of October,
1846. The Attorney-General of the United States early in August last
completed the adjudication of the claims under this convention, and made
his report thereon in pursuance of the act of the 8th of August, 1846.
The sums to which the claimants are respectively entitled will be paid
on demand at the Treasury.
I invite the early attention of Congress to the present condition of our
citizens in China. Under our treaty with that power American citizens
are withdrawn from the jurisdiction, whether civil or criminal, of the
Chinese Government and placed under that of our public functionaries in
that country. By these alone can our citizens be tried and punished for
the commission of any crime; by these alone can questions be decided
between them involving the rights of persons and property, and by these
alone can contracts be enforced into which they may have entered with
the citizens or subjects of foreign powers. The merchant vessels of the
United States lying in the waters of the five ports of China open to
foreign commerce are under the exclusive jurisdiction of officers of
their own Government. Until Congress shall establish competent tribunals
to try and punish crimes and to exercise jurisdiction in civil cases in
China, American citizens there are subject to no law whatever. Crimes
may be committed with impunity and debts may be contracted without any
means to enforce their payment. Inconveniences have already resulted
from the omission of Congress to legislate upon the subject, and still
greater are apprehended. The British authorities in China have already
complained that this Government has not provided for the punishment of
crimes or the enforcement of contracts against American citizens in that
country, whilst their Government has established tribunals by which an
American citizen can recover debts due from British subjects.
Accustomed, as the Chinese are, to summary justice, they could not be
made to comprehend why criminals who are citizens of the United States
should escape with impunity, in violation of treaty obligations, whilst
the punishment of a Chinese who had committed any crime against an
American citizen would be rigorously exacted. Indeed, the consequences
might be fatal to American citizens in China should a flagrant crime be
committed by any one of them upon a Chinese, and should trial and
punishment not follow according to the requisitions of the treaty. This
might disturb, if not destroy, our friendly relations with that Empire
and cause an interruption of our valuable commerce.
Our treaties with the Sublime Porte, Tripoli, Tunis, Morocco, and Muscat
also require the legislation of Congress to carry them into execution,
though the necessity for immediate action may not be so urgent as in
regard to China.
The Secretary of State has submitted an estimate to defray the expense
of opening diplomatic relations with the Papal States. The interesting
political events now in progress in these States, as well as a just
regard to our commercial interests, have, in my opinion, rendered such a
measure highly expedient.
Estimates have also been submitted for the outfits and salaries of
chargés d'affaires to the Republics of Bolivia, Guatemala, and Ecuador.
The manifest importance of cultivating the most friendly relations with
all the independent States upon this continent has induced me to
recommend appropriations necessary for the maintenance of these
missions.
I recommend to Congress that an appropriation be made to be paid to the
Spanish Government for the purpose of distribution among the claimants
in the _Amistad_ case. I entertain the conviction that this is due to
Spain under the treaty of the 20th of October, 1795, and, moreover, that
from the earnest manner in which the claim continues to be urged so long
as it shall remain unsettled it will be a source of irritation and
discord between the two countries, which may prove highly prejudicial to
the interests of the United States. Good policy, no less than a faithful
compliance with our treaty obligations, requires that the inconsiderable
appropriation demanded should be made.
A detailed statement of the condition 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 30th of June, 1847, were of the
value of $146,545,638, of which the amount exported was $8,011,158,
leaving $138,534,480 in the country for domestic use. The value of the
exports for the same period was $158,648,622, of which $150,637,464
consisted of domestic productions and $8,011,158 of foreign articles.
The receipts into the Treasury for the same period amounted to
$26,346,790.37, of which there was derived from customs $23,747,864.66,
from sales of public lands $2,498,335.20, and from incidental and
miscellaneous sources $100,570.51. The last fiscal year, during which
this amount was received, embraced five months under the operation of
the tariff act of 1842 and seven months during which the tariff act of
1846 was in force. During the five months under the act of 1842 the
amount received from customs was $7,842,306.90, and during the seven
months under the act of 1846 the amount received was $15,905,557.76.
The net revenue from customs during the year ending on the 1st of
December, 1846, being the last year under the operation of the tariff
act of 1842, was $22,971,403.10, and the net revenue from customs during
the year ending on the 1st of December, 1847, being the first year under
the operations of the tariff act of 1846, was about $31,500,000, being
an increase of revenue for the first year under the tariff of 1846 of
more than $8,500,000 over that of the last year under the tariff of
1842.
The expenditures during the fiscal year ending on the 30th of June last
were $59,451,177.65, of which $3,522,082.37 was on account of payment of
principal and interest of the public debt, including Treasury notes
redeemed and not funded. The expenditures exclusive of payment of public
debt were $55,929,095.28.
It is estimated that the receipts into the Treasury for the fiscal year
ending on the 30th of June, 1848, including the balance in the Treasury
on the 1st of July last, will amount to $42,886,545.80, of which
$31,000,000, it is estimated, will be derived from customs, $3,500,000
from the sale of the public lands, $400,000 from incidental sources,
including sales made by the Solicitor of the Treasury, and $6,285,294.55
from loans already authorized by law, which, together with the balance
in the Treasury on the 1st of July last, make the sum estimated.
The expenditures for the same period, if peace with Mexico shall not be
concluded and the Army shall be increased as is proposed, will amount,
including the necessary payments on account of principal and interest of
the public debt and Treasury notes, to $58,615,660.07.
On the 1st of the present month the amount of the public debt actually
incurred, including Treasury notes, was $45,659,659.40. The public debt
due on the 4th of March, 1845, including Treasury notes, was
$17,788,799.62, and consequently the addition made to the public debt
since that time is $27,870,859.78.
Of the loan of twenty-three millions authorized by the act of the 28th
of January, 1847, the sum of five millions was paid out to the public
creditors or exchanged at par for specie; the remaining eighteen
millions was offered for specie to the highest bidder not below par, by
an advertisement issued by the Secretary of the Treasury and published
from the 9th of February until the 10th of April, 1847, when it was
awarded to the several highest bidders at premiums varying from
one-eighth of 1 per cent to 2 per cent above par. The premium has been
paid into the Treasury and the sums awarded deposited in specie in the
Treasury 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 30th of June, 1849, a further loan in
aid of the ordinary revenues of the Government will be necessary.
Retaining a sufficient surplus in the Treasury, the loan required for
the remainder of the present fiscal year will be about $18,500,000. 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 session, as
recommended, the loan for the present fiscal year may be reduced to
$17,000,000. The loan may be further reduced by whatever amount of
expenditures can be saved by military contributions collected in Mexico.
The most vigorous measures for the augmentation of these contributions
have been directed and a very considerable sum is expected from that
source. Its amount can not, however, be calculated with any certainty.
It is recommended that the loan to be made be authorized upon the same
terms and for the same time as that which was authorized under the
provisions of the act of the 28th of January, 1847.
Should the war with Mexico be continued until the 30th of June, 1849, it
is estimated that a further loan of $20,500,000 will be required for the
fiscal year ending on that day, in case no duty be imposed on tea and
coffee, and the public lands be not reduced and graduated in price, and
no military contributions shall be collected in Mexico. If the duty on
tea and coffee be imposed and the lands be reduced and graduated in
price as proposed, the loan may be reduced to $17,000,000, and will be
subject to be still further reduced by the amount of the military
contributions which may be collected in Mexico. It is not proposed,
however, at present to ask Congress for authority to negotiate this loan
for the next fiscal year, as it is hoped that the loan asked for the
remainder of the present fiscal year, aided by military contributions
which may be collected in Mexico, may be sufficient. If, contrary to
my expectation, there should be a necessity for it, the fact will be
communicated to Congress in time for their action during the present
session. In no event will a sum exceeding $6,000,000 of this amount be
needed before the meeting of the session of Congress in December, 1848.
The act of the 30th of July, 1846, "reducing the duties on imports," has
been in force since the 1st of December last, and I am gratified to
state that all the beneficial effects which were anticipated from its
operation have been fully realized. The public revenue derived from
customs during the year ending on the 1st of December, 1847, exceeds by
more than $8,000,000 the amount received in the preceding year under the
operation of the act of 1842, which was superseded and repealed by it.
Its effects are visible in the great and almost unexampled prosperity
which prevails in every branch of business.
While the repeal of the prohibitory and restrictive duties of the act of
1842 and the substitution in their place of reasonable revenue rates
levied on articles imported according to their actual value has
increased the revenue and augmented our foreign trade, all the great
interests of the country have been advanced and promoted.
The great and important interests of agriculture, which had been not
only too much neglected, but actually taxed under the protective policy
for the benefit of other interests, have been relieved of the burdens
which that policy imposed on them; and our farmers and planters, under a
more just and liberal commercial policy, are finding new and profitable
markets abroad for their augmented products. Our commerce is rapidly
increasing, and is extending more widely the circle of international
exchanges. Great as has been the increase of our imports during the past
year, our exports of domestic products sold in foreign markets have been
still greater.
Our navigating interest is eminently prosperous. The number of vessels
built in the United States has been greater than during any preceding
period of equal length. Large profits have been derived by those who
have constructed as well as by those who have navigated them. Should the
ratio of increase in the number of our merchant vessels be progressive,
and be as great for the future as during the past year, the time is not
distant when our tonnage and commercial marine will be larger than that
of any other nation in the world.
Whilst the interests of agriculture, of commerce, and of navigation have
been enlarged and invigorated, it is highly gratifying to observe that
our manufactures are 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 system established by the act of 1846
have been experienced. On the contrary, the number of manufactories and
the amount of capital invested in them is steadily and rapidly
increasing, affording gratifying proofs that American enterprise and
skill employed in this branch of domestic industry, with no other
advantages than those fairly and incidentally accruing from a just
system of revenue duties, are abundantly able to meet successfully all
competition from abroad and still derive fair and remunerating profits.
While capital invested in manufactures is yielding adequate and fair
profits under the new system, the wages of labor, whether employed in
manufactures, agriculture, commerce, or navigation, have been augmented.
The toiling millions whose daily labor furnishes the supply of food and
raiment and all the necessaries and comforts of life are receiving
higher wages and more steady and permanent employment than in any other
country or at any previous 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 1846, every consideration of public
policy recommends that it shall remain unchanged. It is hoped that the
system of impost duties which it 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 sudden changes.
For the purpose of increasing the revenue, and without changing or
modifying the rates imposed by the act of 1846 on the dutiable articles
embraced by its provisions, I again recommend 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
of 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 $3,000,000 would be derived annually by a moderate
duty imposed on these articles.
Should Congress avail itself of this additional 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 Government to
meet all its engagements promptly would be more firmly established, and
the reduced amount of the loan which it may be necessary to negotiate
could probably be obtained at cheaper rates.
Congress is therefore called upon to determine whether it is wiser to
impose the war duties recommended or by omitting to do so increase the
public debt annually $3,000,000 so long as loans shall be required to
prosecute the war, and afterwards provide in some other form to pay the
semiannual 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 of Congress, the annual amount of public
debt necessary to be contracted during the continuance of the war would
be reduced near $4,000,000. 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 Treasury will permit.
With this view, it is recommended that as soon as the war shall be over
all the surplus in the Treasury not needed for other indispensable
objects shall constitute a sinking fund and be applied to the purchase
of the funded debt, and that authority be conferred by laws for that
purpose.
The act of the 6th of August, 1846, "to establish a warehousing system,"
has been in operation 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, it has been beneficial to our manufactures by
diminishing forced sales at auction of foreign goods at low prices to
raise the duties to be advanced on them, and by checking fluctuations in
the market. The system, although sanctioned by the experience of other
countries, was entirely new in the United States, and is susceptible of
improvement in some of its provisions. The Secretary of the Treasury,
upon whom was devolved large discretionary powers in carrying this
measure into effect, has collected and is now collating the practical
results of the system in other countries where it has long been
established, and will report at an early period of your session such
further regulations suggested by the investigation as may render it
still more effective and beneficial.
By the act to "provide for the better organization of the Treasury and
for the collection, safe-keeping, and disbursement of the public
revenue" all banks were discontinued as fiscal agents of the Government,
and the paper currency issued by them was no longer permitted to be
received in payment of public dues. The constitutional treasury created
by this act went into operation on the 1st 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 transfers of large amounts have been made from
points of collection to points of disbursement without loss to the
Treasury or injury or inconvenience 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 excessive issues of bank paper by the banks disproportioned
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 dues. The banks, therefore, must keep their business within
prudent limits, and be always in a condition to meet such calls, or run
the hazard of being compelled to suspend specie payments and be thereby
discredited. The amount of specie imported into the United States during
the last fiscal year was $24,121,289, of which there was retained in the
country $22,276,170. Had the former financial system prevailed and the
public moneys been placed on deposit in the banks, nearly the whole of
this amount would have gone into their vaults, not to be thrown into
circulation 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 imported 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 constitutional treasury has been
thus far eminently 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 connection with
banks and excludes bank paper from all revenue receipts.
In some of its details, not involving its general 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. These amendments are again
recommended to the early and favorable consideration of Congress.
During the past year the coinage at the Mint and its branches has
exceeded $20,000,000. This has consisted chiefly in converting the coins
of foreign countries into American coin.
The largest amount of foreign coin imported has been received at New
York, and if a branch mint were established at that city all the foreign
coin received at that port could at once be converted into our own coin
without the expense, risk, and delay of transporting it to the Mint for
that purpose, and the amount recoined would be much larger.
Experience has 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 diffusing 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 city of New York.
All the public lands which had been surveyed and were ready for market
have been proclaimed for sale during the past year. The quantity offered
and to be offered for sale under proclamations issued since the 1st of
January last amounts to 9,138,531 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 and
increase of population would be retarded, while thousands of our
enterprising 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 object at this time to
derive 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 estimated that not less than 10,000,000 acres of the public lands
will be surveyed and be in a condition to be proclaimed for sale during
the year 1848.
In my last annual message I presented the reasons 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 at public auction.
Many millions of acres of public lands lying within the limits of
several of the Western States have been offered in the market and been
subject to sale at private entry for more than twenty years and large
quantities for more than thirty years at the lowest price prescribed by
the existing laws, and it has been found that they will not command that
price. They must remain unsold and uncultivated for an indefinite period
unless the price demanded for them by the Government shall be reduced.
No satisfactory reason is perceived why they should be longer held at
rates above their real value. At the present period an additional reason
exists for adopting the measure recommended. When 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 and thus limit the amount of the public indebtedness to the
lowest possible sum.
I recommend that the existing laws on the subject of preemption rights
be amended and modified so as to operate prospectively and to embrace
all who may settle upon the public lands and make improvements upon
them, before they are surveyed as well as afterwards, in all cases where
such settlements may be made after the Indian title shall have been
extinguished.
If the right of preemption be thus extended, it will embrace a large and
meritorious class of our citizens. It will increase the number of small
freeholders upon our borders, who will be enabled thereby to educate
their 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 to their country, among our hardiest and best volunteer
soldiers, ever ready to attend to their services in cases of emergencies
and among the last to leave the field as long as an enemy remains to be
encountered. Such a policy will also impress these patriotic pioneer
emigrants with deeper feelings of gratitude for the parental care of
their Government, when they find their dearest interests secured to them
by the permanent laws of the land and that they are no longer in danger
of losing 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 a Territorial government over
our possessions in Oregon, and it is to be regretted that there was no
legislation on the subject. Our citizens who inhabit that distant region
of country are still left without the protection of our laws, or any
regularly organized government. Before the question of limits and
boundaries of the Territory of Oregon was definitely settled, from the
necessity of their condition the inhabitants had established a temporary
government of their own. Besides the want of legal authority for
continuing 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, to which they are entitled under
the Constitution of the United States. They should have the right of
suffrage, be represented in a Territorial legislature and by a Delegate
in Congress, and possess all the rights and privileges which citizens of
other portions of the territories of the United States have heretofore
enjoyed or may now enjoy.
Our judicial system, revenue laws, laws regulating trade and intercourse
with the Indian tribes, and the protection of our laws generally should
be extended over them.
In addition to the inhabitants in that Territory who had previously
emigrated to it, large numbers of our citizens have followed them during
the present year, and it is not doubted that during the next and
subsequent years 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 authorized the
establishment of post-offices at "Astoria and such other places on the
coasts of the Pacific within the territory of the United States as the
public interests may require." Post-offices have accordingly been
established, deputy postmasters appointed, and provision made for the
transportation of the mails.
The preservation of peace with the Indian tribes residing west of the
Rocky Mountains will render it proper that authority should be given by
law for the appointment of an adequate number of Indian agents to reside
among them.
I recommend that a surveyor-general's office be established in that
Territory, and that the public lands be surveyed and brought into market
at an early period.
I recommend also that grants, upon liberal terms, of limited quantities
of the public lands be made to all citizens of the United States who
have emigrated, or may hereafter within a prescribed period emigrate, to
Oregon and settle upon them. These hardy and adventurous citizens, who
have encountered the dangers and privations of a long and toilsome
journey, and have at length found an abiding place for themselves and
their families upon the utmost verge of our western limits, should be
secured in the homes which they have improved by their labor.
I refer you to the accompanying report of the Secretary of War for a
detailed account of the operations of the various branches of the public
service connected with the Department under his charge. The duties
devolving on this Department have been unusually onerous and responsible
during the past year, and have been discharged with ability and success.
Pacific relations continue to exist with the various Indian tribes, and
most of them manifest a strong friendship for the United States. Some
depredations were committed during the past year upon our trains
transporting supplies for the Army, on the road between the western
border of Missouri and Santa Fe. These depredations, which are supposed
to have been committed by bands from the region of New Mexico, have been
arrested by the presence of a military force ordered out for that
purpose. Some outrages have been perpetrated by a portion of the
northwestern bands upon the weaker and comparatively defenseless
neighboring tribes. Prompt measures were taken to prevent such
occurrences in future.
Between 1,000 and 2,000 Indians, belonging to several tribes, have been
removed during the year from the east of the Mississippi to the country
allotted to them west of that river as their permanent home, and
arrangements have been made for others to follow.
Since the treaty of 1846 with the Cherokees the feuds among them appear
to have subsided, and they have become more united and contented than
they have been for many years past. The commissioners appointed in
pursuance of the act of June 27, 1846, to settle claims arising under
the treaty of 1835-36 with that tribe have executed their duties, and
after a patient investigation and a full and fair examination of all the
cases brought before them closed their labors in the month of July last.
This is the fourth board of commissioners which has been organized under
this treaty. Ample opportunity has been afforded to all those interested
to bring forward their claims. No doubt is entertained 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 settlement to be made with this tribe under the treaty of
1846, which will be completed and laid before you during your session,
will adjust all questions of controversy between them and the United
States and produce a state of relations with them simple, well defined,
and satisfactory.
Under the discretionary authority conferred by the act of the 3d of
March last the annuities due to the various tribes have been paid during
the present year to the heads of families instead of to their chiefs or
such persons as they might designate, as required by the law previously
existing. This mode of payment has given general 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 chiefs and interested persons
may object to this mode of payment, but it is believed to be the only
mode of preventing fraud and imposition from being practiced 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 agriculture, some of them
producing a sufficient quantity of food for their support and in some
cases a surplus to dispose of to their neighbors. The comforts by which
those who have received even a very limited education and have engaged
in agriculture are surrounded tend gradually 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 condition and operations of
the naval service during the past year. Our commerce has been pursued
with increased activity and with safety and success in every quarter of
the globe under the protection of our flag, which the Navy has caused to
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 performed valuable
services. In the early stages of the war with Mexico her ports on both
coasts were blockaded, and more recently many of them have been captured
and held by the Navy. When acting in cooperation with the land forces,
the naval officers and men have performed gallant and distinguished
services on land as well as on water, and deserve the high commendation
of the country.
While other maritime powers are adding to their navies large numbers of
war steamers, it was a wise policy on our part to make similar additions
to our Navy. 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 authorized by this act, the
Secretary of the Navy has, in pursuance of its provisions, entered into
contracts for the construction of five steamers to be employed in the
transportation of the United States mail "from New York to New Orleans,
touching at Charleston, Savannah, and Havana, and from Havana to
Chagres;" for three steamers to be employed in like manner from Panama
to Oregon, "so as to connect with the mail from Havana to Chagres across
the Isthmus;" and for five steamers to be employed in like manner from
New York to Liverpool. These steamers will be the property of the
contractors, but are to be built "under the superintendence and
direction of a naval constructor in the employ of the Navy Department,
and to be so constructed as to render them convertible at the least
possible expense into war steamers of the first class." A prescribed
number of naval officers, as well as a post-office agent, are to be on
board of them, and authority is reserved to the Navy Department at all
times to "exercise control over said steamships" and "to have the right
to take them for the exclusive use and service of the United States upon
making proper compensation to the contractors therefor."
Whilst these steamships will be employed in transporting the mails of
the United States coastwise and to foreign countries upon an annual
compensation to be paid to the owners, they will be always ready, upon
an emergency requiring it, to be converted into war steamers; and the
right reserved to take them for public use will add greatly to the
efficiency and strength of this description of our naval force. To the
steamers authorized under contracts made by the Secretary of the Navy
should be added five other steamers authorized under contracts made in
pursuance of laws by the Postmaster-General, making an addition, in the
whole, of eighteen war steamers subject to be taken for public use. As
further contracts for the transportation of the mail to foreign
countries may be 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 American-built
sea 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 the national advantage is still greater--of having our naval
officers made familiar with steam navigation and of having the privilege
of taking the ships already equipped for immediate service at a moment's
notice, and will be cheaply purchased by the compensation to be paid for
the transportation of the mail in them over and above the postages
received.
A just national pride, no less than our commercial interests, would Seem
to favor the policy of augmenting the number of this description of
vessels. They can be built in our country cheaper and in greater numbers
than in any other in the world.
I refer you to the accompanying report of the Postmaster-General for a
detailed and satisfactory account of the condition and operations of
that Department during the past year. It is gratifying to find that
within so short a period after the reduction in the rates of postage,
and notwithstanding the great increase of mail service, the revenue
received for the year will be sufficient to defray all the expenses, and
that no further aid will be required from the Treasury for that purpose.
The first of the American mail steamers authorized by the act of the 3d
of March, 1845, was completed and entered upon the service on the 1st of
June last, and is now on her third voyage to Bremen and other
intermediate ports. The other vessels authorized under the provisions of
that act are in course of construction, and will be put upon the line as
soon as completed. Contracts have also been made for the transportation
of the mail in a steamer from Charleston to Havana.
A reciprocal and satisfactory postal arrangement has been made by the
Postmaster-General with the authorities of Bremen, and no difficulty is
apprehended in making similar arrangements with all other powers with
which we may have communications by mail steamers, except with Great
Britain.
On the arrival of the first of the American steamers bound to Bremen at
Southampton, in the month of June last, the British post-office directed
the collection of discriminating postages on all letters and other
mailable matter which she took out to Great Britain or which went into
the British post-office on their way to France and other parts of
Europe. The effect of the order of the British post-office is to subject
all letters and other matter transported by American steamers to double
postage, one postage having been previously paid on them to the United
States, while letters transported in British steamers are subject to pay
but a single postage. This measure was adopted with the avowed object of
protecting the British line of mail steamers now running between Boston
and Liverpool, and if permitted to continue must speedily put an end to
the transportation of all letters and other matter by American steamers
and give to British steamers a monopoly of the business. A just and fair
reciprocity is all that we desire, and on this we must insist. By our
laws no such discrimination is made against British steamers bringing
letters into our ports, but all letters arriving in the United States
are subject to the same rate of postage, whether brought in British 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 the steps taken by
him to correct this inequality. He has exerted all the power conferred
upon him by the existing laws.
The minister of the United States at London has brought the subject to
the attention of the British Government, and is now engaged in
negotiations for the purpose of adjusting reciprocal postal arrangements
which shall be equally just to 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 powers 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 steamers engaged in transporting the mails
between the two countries, and I recommend that such powers be
conferred.
In view of the existing state of our country, I trust it may not be
inappropriate, in closing this communication, to call to mind the words
of wisdom and admonition of the first and most illustrious of my
predecessors in his Farewell Address to his countrymen.
That greatest and best of men, who served his country so long and loved
it so much, foresaw with "serious concern" the danger to our Union of
"characterizing parties by _geographical_ discriminations--_Northern_
and _Southern_, _Atlantic_ and _Western_--whence designing men may
endeavor to excite a belief that there is a real difference of local
interests and views," and warned his countrymen against it.
So deep and solemn was his conviction of the importance of the Union and
of preserving harmony between its different parts, that he declared to
his countrymen in 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 cherish a cordial, habitual, and immovable
attachment to it; accustoming yourselves to think and speak of it as of
the palladium of your political safety and prosperity; watching for its
preservation with jealous anxiety; discountenancing whatever may suggest
even a suspicion that it can in any event be abandoned, and indignantly
frowning upon the first dawning of every attempt to alienate any portion
of our country from the rest or to enfeeble the sacred ties which now
link together the various parts.
After the lapse of half a century these admonitions of Washington fall
upon us with all the force of truth. It _is_ difficult to estimate the
"immense value" of our glorious Union of confederated States, to which
we are so much indebted for our growth in population and wealth and for
all that constitutes us a great and a happy nation. How unimportant are
all our differences of opinion upon minor questions of public policy
compared with its preservation, and how scrupulously should we avoid all
agitating topics which may tend to distract and divide us into
contending parties, separated by geographical lines, whereby it may be
weakened or endangered.
Invoking the blessing of the Almighty Ruler of the Universe upon your
deliberations, it will be my highest duty, no less than my sincere
pleasure, to cooperate with you in all measures which may tend to
promote the honor and enduring welfare of our common country.