FOURTH ANNUAL MESSAGE.

WASHINGTON, _December 5, 1848_.

_Fellow-Citizens of the Senate and of the House of Representatives_:

Under the benignant providence of Almighty God the representatives of

the States and of the people are again brought together to deliberate

for the public good. The gratitude of the nation to the Sovereign

Arbiter of All Human Events should be commensurate with the boundless

blessings which we enjoy.

Peace, plenty, and contentment reign throughout our borders, and our

beloved country presents a sublime moral spectacle to the world.

The troubled and unsettled condition of some of the principal European

powers has had a necessary tendency to check and embarrass trade and to

depress prices throughout all commercial nations, but notwithstanding

these causes, the United States, with their abundant products, have felt

their effects less severely than any other country, and all our great

interests are still prosperous and successful.

In reviewing the great events of the past year and contrasting the

agitated and disturbed state of other countries with our own tranquil

and happy condition, we may congratulate ourselves that we are the most

favored people on the face of the earth. While the people of other

countries are struggling to establish free institutions, under which man

may govern himself, we are in the actual enjoyment of them--a rich

inheritance from our fathers. While enlightened nations of Europe are

convulsed and distracted by civil war or intestine strife, we settle all

our political controversies by the peaceful exercise of the rights of

freemen at the ballot box.

The great republican maxim, so deeply engraven on the hearts of our

people, that the will of the majority, constitutionally expressed, shall

prevail, is our sure safeguard against force and violence. It is a

subject of just pride that our fame and character as a nation continue

rapidly to advance in the estimation of the civilized world.

To our wise and free institutions it is to be attributed that while

other nations have achieved glory at the price of the suffering,

distress, and impoverishment of their people, we have won our honorable

position in the midst of an uninterrupted prosperity and of an

increasing individual comfort and happiness.

I am happy to inform you that our relations with all nations are

friendly and pacific. Advantageous treaties of commerce have been

concluded within the last four years with New Granada, Peru, the Two

Sicilies, Belgium, Hanover, Oldenburg, and Mecklenburg-Schwerin.

Pursuing our example, the restrictive system of Great Britain, our

principal foreign customer, has been relaxed, a more liberal commercial

policy has been adopted by other enlightened nations, and our trade has

been greatly enlarged and extended. Our country stands higher in the

respect of the world than at any former period. To continue to occupy

this proud position, it is only necessary to preserve peace and

faithfully adhere to the great and fundamental principle of our foreign

policy of noninterference in the domestic concerns of other nations. We

recognize in all nations the right which we enjoy ourselves, to change

and reform their political institutions according to their own will and

pleasure. Hence we do not look behind existing governments capable of

maintaining their own authority. We recognize all such actual

governments, not only from the dictates of true policy, but from a

sacred regard for the independence of nations. While this is our settled

policy, it does not follow that we can ever be indifferent spectators of

the progress of liberal principles. The Government and people of the

United States hailed with enthusiasm and delight the establishment of

the French Republic, as we now hail the efforts in progress to unite the

States of Germany in a confederation similar in many respects to our own

Federal Union. If the great and enlightened German States, occupying, as

they do, a central and commanding position in Europe, shall succeed in

establishing such a confederated government, securing at the same time

to the citizens of each State local governments adapted to the peculiar

condition of each, with unrestricted trade and intercourse with each

other, it will be an important era in the history of human events.

Whilst it will consolidate and strengthen the power of Germany, it must

essentially promote the cause of peace, commerce, civilization, and

constitutional liberty throughout the world.

With all the Governments on this continent our relations, it is

believed, are now on a more friendly and satisfactory footing than they

have ever been at any former period.

Since the exchange of ratifications of the treaty of peace with Mexico

our intercourse with the Government of that Republic has been of the

most friendly character. The envoy extraordinary and minister

plenipotentiary of the United States to Mexico has been received and

accredited, and a diplomatic representative from Mexico of similar rank

has been received and accredited by this Government. The amicable

relations between the two countries, which had been suspended, have been

happily restored, and are destined, I trust, to be long preserved. The

two Republics, both situated on this continent, and with coterminous

territories, have every motive of sympathy and of interest to bind them

together in perpetual amity.

This gratifying condition of our foreign relations renders it

unnecessary for me to call your attention more specifically to them.

It has been my constant aim and desire to cultivate peace and commerce

with all nations. Tranquillity at home and peaceful relations abroad

constitute the true permanent policy of our country. War, the scourge of

nations, sometimes becomes inevitable, but is always to be avoided when

it can be done consistently with the rights and honor of a nation.

One of the most important results of the war into which we were recently

forced with a neighboring nation is the demonstration it has afforded of

the military strength of our country. Before the late war with Mexico

European and other foreign powers entertained imperfect and erroneous

views of our physical strength as a nation and of our ability to

prosecute war, and especially a war waged out of our own country. They

saw that our standing Army on the peace establishment did not exceed

10,000 men. Accustomed themselves to maintain in peace large standing

armies for the protection of thrones against their own subjects, as well

as against foreign enemies, they had not conceived that it was possible

for a nation without such an army, well disciplined and of long service,

to wage war successfully. They held in low repute our militia, and were

far from regarding them as an effective force, unless it might be for

temporary defensive operations when invaded on our own soil. The events

of the late war with Mexico have not only undeceived them, but have

removed erroneous impressions which prevailed to some extent even among

a portion of our own countrymen. That war has demonstrated that upon the

breaking out of hostilities not anticipated, and for which no previous

preparation had been made, a volunteer army of citizen soldiers equal to

veteran troops, and in numbers equal to any emergency, can in a short

period be brought into the field. Unlike what would have occurred in any

other country, we were under no necessity of resorting to drafts or

conscriptions. On the contrary, such was the number of volunteers who

patriotically tendered their services that the chief difficulty was

in making selections and determining who should be disappointed and

compelled to remain at home. Our citizen soldiers are unlike those

drawn from the population of any other country. They are composed

indiscriminately of all professions and pursuits--of farmers, lawyers,

physicians, merchants, manufacturers, mechanics, and laborers--and this

not only among the officers, but the private soldiers in the ranks.

Our citizen soldiers are unlike those of any other country in other

respects. They are armed, and have been accustomed from their youth up

to handle and use firearms, and a large proportion of them, especially

in the Western and more newly settled States, are expert marksmen. They

are men who have a reputation to maintain at home by their good conduct

in the field. They are intelligent, and there is an individuality of

character which is found in the ranks of no other army. In battle each

private man, as well as every officer, fights not only for his country,

but for glory and distinction among his fellow-citizens when he shall

return to civil life.

The war with Mexico has demonstrated not only the ability of the

Government to organize a numerous army upon a sudden call, but also to

provide it with all the munitions and necessary supplies with dispatch,

convenience, and ease, and to direct its operations with efficiency. The

strength of our institutions has not only been displayed in the valor

and skill of our troops engaged in active service in the field, but in

the organization of those executive branches which were charged with the

general direction and conduct of the war. While too great praise can not

be bestowed upon the officers and men who fought our battles, it would

be unjust to withhold from those officers necessarily stationed at home,

who were charged with the duty of furnishing the Army in proper time and

at proper places with all the munitions of war and other supplies so

necessary to make it efficient, the commendation to which they are

entitled. The credit due to this class of our officers is the greater

when it is considered that no army in ancient or modern times was ever

better appointed or provided than our Army in Mexico. Operating in an

enemy's country, removed 2,000 miles from the seat of the Federal

Government, its different corps spread over a vast extent of territory,

hundreds and even thousands of miles apart from each other, nothing

short of the untiring vigilance and extraordinary energy of these

officers could have enabled them to provide the Army at all points and

in proper season with all that was required for the most efficient

service.

It is but an act of justice to declare that the officers in charge of

the several executive bureaus, all under the immediate eye and

supervision of the Secretary of War, performed their respective duties

with ability, energy, and efficiency. They have reaped less of the glory

of the war, not having been personally exposed to its perils in battle,

than their companions in arms; but without their forecast, efficient

aid, and cooperation those in the field would not have been provided

with the ample means they possessed of achieving for themselves and

their country the unfading honors which they have won for both.

When all these facts are considered, it may cease to be a matter of so

much amazement abroad how it happened that our noble Army in Mexico,

regulars and volunteers, were victorious upon every battlefield, however

fearful the odds against them.

The war with Mexico has thus fully developed the capacity of republican

governments to prosecute successfully a just and necessary foreign war

with all the vigor usually attributed to more arbitrary forms of

government. It has been usual for writers on public law to impute to

republics a want of that unity, concentration of purpose, and vigor of

execution which are generally admitted to belong to the monarchical and

aristocratic forms; and this feature of popular government has been

supposed to display itself more particularly in the conduct of a war

carried on in an enemy's territory. The war with Great Britain in 1812

was to a great extent confined within our own limits, and shed but

little light on this subject; but the war which we have just closed by

an honorable peace evinces beyond all doubt that a popular

representative government is equal to any emergency which is likely to

arise in the affairs of a nation.

The war with Mexico has developed most strikingly and conspicuously

another feature in our institutions. It is that without cost to the

Government or danger to our liberties we have in the bosom of our

society of freemen, available in a just and necessary war, virtually a

standing army of 2,000,000 armed citizen soldiers, such as fought the

battles of Mexico. But our military strength does not consist alone in

our capacity for extended and successful operations on land. The Navy is

an important arm of the national defense. If the services of the Navy

were not so brilliant as those of the Army in the late war with Mexico,

it was because they had no enemy to meet on their own element. While the

Army had opportunity of performing more conspicuous service, the Navy

largely participated in the conduct of the war. Both branches of the

service performed their whole duty to the country. For the able and

gallant services of the officers and men of the Navy, acting

independently as well as in cooperation with our troops, in the conquest

of the Californias, the capture of Vera Cruz, and the seizure and

occupation of other important positions on the Gulf and Pacific coasts,

the highest praise is due. Their vigilance, energy, and skill rendered

the most effective service in excluding munitions of war and other

supplies from the enemy, while they secured a safe entrance for abundant

supplies for our own Army. Our extended commerce was nowhere

interrupted, and for this immunity from the evils of war the country is

indebted to the Navy.

High praise is due to the officers of the several executive bureaus,

navy-yards, and stations connected with the service, all under the

immediate direction of the Secretary of the Navy, for the industry,

foresight, and energy with which everything was directed and furnished

to give efficiency to that branch of the service. The same vigilance

existed in directing the operations of the Navy as of the Army. There

was concert of action and of purpose between the heads of the two arms

of the service. By the orders which were from time to time issued, our

vessels of war on the Pacific and the Gulf of Mexico were stationed in

proper time and in proper positions to cooperate efficiently with the

Army. By this means their combined power was brought to bear

successfully on the enemy.

The great results which have been developed and brought to light by

this war will be of immeasurable importance in the future progress of

our country. They will tend powerfully to preserve us from foreign

collisions, and to enable us to pursue uninterruptedly our cherished

policy of "peace with all nations, entangling alliances with none."

Occupying, as we do, a more commanding position among nations than at

any former period, our duties and our responsibilities to ourselves

and to posterity are correspondingly increased. This will be the more

obvious when we consider the vast additions which have been recently

made to our territorial possessions and their great importance and

value.

Within less than four years the annexation of Texas to the Union has

been consummated; all conflicting title to the Oregon Territory south of

the forty-ninth degree of north latitude, being all that was insisted on

by any of my predecessors, has been adjusted, and New Mexico and Upper

California have been acquired by treaty. The area of these several

Territories, according to a report carefully prepared by the

Commissioner of the General Land Office from the most authentic

information in his possession, and which is herewith transmitted,

contains 1,193,061 square miles, or 763,559,040 acres; while the area of

the remaining twenty-nine States and the territory not yet organized

into States east of the Rocky Mountains contains 2,059,513 square miles,

or 1,318,126,058 acres. These estimates show that the territories

recently acquired, and over which our exclusive jurisdiction and

dominion have been extended, constitute a country more than half as

large as all that which was held by the United States before their

acquisition. If Oregon be excluded from the estimate, there will still

remain within the limits of Texas, New Mexico, and California 851,598

square miles, or 545,012,720 acres, being an addition equal to more than

one-third of all the territory owned by the United States before their

acquisition, and, including Oregon, nearly as great an extent of

territory as the whole of Europe, Russia only excepted. The Mississippi,

so lately the frontier of our country, is now only its center. With the

addition of the late acquisitions, the United States are now estimated

to be nearly as large as the whole of Europe. It is estimated by the

Superintendent of the Coast Survey in the accompanying report that the

extent of the seacoast of Texas on the Gulf of Mexico is upward of 400

miles; of the coast of Upper California on the Pacific, of 970 miles,

and of Oregon, including the Straits of Fuca, of 650 miles, making the

whole extent of seacoast on the Pacific 1,620 miles and the whole extent

on both the Pacific and the Gulf of Mexico 2,020 miles. The length of

the coast on the Atlantic from the northern limits of the United States

around the capes of Florida to the Sabine, on the eastern boundary of

Texas, is estimated to be 3,100 miles; so that the addition of seacoast,

including Oregon, is very nearly two-thirds as great as all we possessed

before, and, excluding Oregon, is an addition of 1,370 miles, being

nearly equal to one-half of the extent of coast which we possessed

before these acquisitions. We have now three great maritime fronts--on

the Atlantic, the Gulf of Mexico, and the Pacific--making in the whole

an extent of seacoast exceeding 5,000 miles. This is the extent of the

seacoast of the United States, not including bays, sounds, and small

irregularities of the main shore and of the sea islands. If these be

included, the length of the shore line of coast, as estimated by the

Superintendent of the Coast Survey in his report, would be 33,063 miles.

It would be difficult to calculate the value of these immense additions

to our territorial possessions. Texas, lying contiguous to the western

boundary of Louisiana, embracing within its limits a part of the

navigable tributary waters of the Mississippi and an extensive seacoast,

could not long have remained in the hands of a foreign power without

endangering the peace of our southwestern frontier. Her products in the

vicinity of the tributaries of the Mississippi must have sought a market

through these streams, running into and through our territory, and the

danger of irritation and collision of interests between Texas as a

foreign state and ourselves would have been imminent, while the

embarrassments in the commercial intercourse between them must have been

constant and unavoidable. Had Texas fallen into the hands or under the

influence and control of a strong maritime or military foreign power, as

she might have done, these dangers would have been still greater. They

have been avoided by her voluntary and peaceful annexation to the United

States. Texas, from her position, was a natural and almost indispensable

part of our territories. Fortunately, she has been restored to our

country, and now constitutes one of the States of our Confederacy, "upon

an equal footing with the original States." The salubrity of climate,

the fertility of soil, peculiarly adapted to the production of some of

our most valuable staple commodities, and her commercial advantages must

soon make her one of our most populous States.

New Mexico, though situated in the interior and without a seacoast, is

known to contain much fertile land, to abound in rich mines of the

precious metals, and to be capable of sustaining a large population.

From its position it is the intermediate and connecting territory

between our settlements and our possessions in Texas and those on the

Pacific Coast.

Upper California, irrespective of the vast mineral wealth recently

developed there, holds at this day, in point of value and importance,

to the rest of the Union the same relation that Louisiana did when that

fine territory was acquired from France forty-five years ago. Extending

nearly ten degrees of latitude along the Pacific, and embracing the only

safe and commodious harbors on that coast for many hundred miles, with

a temperate climate and an extensive interior of fertile lands, it is

scarcely possible to estimate its wealth until it shall be brought under

the government of our laws and its resources fully developed. From its

position it must command the rich commerce of China, of Asia, of the

islands of the Pacific, of western Mexico, of Central America, the South

American States, and of the Russian possessions bordering on that ocean.

A great emporium will doubtless speedily arise on the Californian coast

which may be destined to rival in importance New Orleans itself. The

depot of the vast commerce which must exist on the Pacific will probably

be at some point on the Bay of San Francisco, and will occupy the same

relation to the whole western coast of that ocean as New Orleans does to

the valley of the Mississippi and the Gulf of Mexico. To this depot our

numerous whale ships will resort with their cargoes to trade, refit,

and obtain supplies. This of itself will largely contribute to build

up a city, which would soon become the center of a great and rapidly

increasing commerce. Situated on a safe harbor, sufficiently capacious

for all the navies as well as the marine of the world, and convenient to

excellent timber for shipbuilding, owned by the United States, it must

become our great Western naval depot.

It was known that mines of the precious metals existed to a considerable

extent in California at the time of its acquisition. Recent discoveries

render it probable that these mines are more extensive and valuable than

was anticipated. The accounts of the abundance of gold in that territory

are of such an extraordinary character as would scarcely command belief

were they not corroborated by the authentic reports of officers in the

public service who have visited the mineral district and derived the

facts which they detail from personal observation. Reluctant to credit

the reports in general circulation as to the quantity of gold, the

officer commanding our forces in California visited the mineral district

in July last for the purpose of obtaining accurate information on the

subject. His report to the War Department of the result of his

examination and the facts obtained on the spot is herewith laid before

Congress. When he visited the country there were about 4,000 persons

engaged in collecting gold. There is every reason to believe that the

number of persons so employed has since been augmented. The explorations

already made warrant the belief that the supply is very large and that

gold is found at various places in an extensive district of country.

Information received from officers of the Navy and other sources, though

not so full and minute, confirms the accounts of the commander of our

military force in California. It appears also from these reports that

mines of quicksilver are found in the vicinity of the gold region. One

of them is now being worked, and is believed to be among the most

productive in the world.

The effects produced by the discovery of these rich mineral deposits and

the success which has attended the labors of those who have resorted to

them have produced a surprising change in the state of affairs in

California. Labor commands a most exorbitant price, and all other

pursuits but that of searching for the precious metals are abandoned.

Nearly the whole of the male population of the country have gone to the

gold districts. Ships arriving on the coast are deserted by their crews

and their voyages suspended for want of sailors. Our commanding officer

there entertains apprehensions that soldiers can not be kept in the

public service without a large increase of pay. Desertions in his

command have become frequent, and he recommends that those who shall

withstand the strong temptation and remain faithful should be rewarded.

This abundance of gold and the all-engrossing pursuit of it have already

caused in California an unprecedented rise in the price of all the

necessaries of life.

That we may the more speedily and fully avail ourselves of the

undeveloped wealth of these mines, it is deemed of vast importance

that a branch of the Mint of the United States be authorized to be

established at your present session in California. Among other signal

advantages which would result from such an establishment would be that

of raising the gold to its par value in that territory. A branch mint of

the United States at the great commercial depot on the west coast would

convert into our own coin not only the gold derived from our own rich

mines, but also the bullion and specie which our commerce may bring from

the whole west coast of Central and South America. The west coast of

America and the adjacent interior embrace the richest and best mines of

Mexico, New Granada, Central America, Chili, and Peru. The bullion and

specie drawn from these countries, and especially from those of western

Mexico and Peru, to an amount in value of many millions of dollars, are

now annually diverted and carried by the ships of Great Britain to her

own ports, to be recoined or used to sustain her national bank, and thus

contribute to increase her ability to command so much of the commerce of

the world. If a branch mint be established at the great commercial point

upon that coast, a vast amount of bullion and specie would flow thither

to be recoined, and pass thence to New Orleans, New York, and other

Atlantic cities. The amount of our constitutional currency at home would

be greatly increased, while its circulation abroad would be promoted. It

is well known to our merchants trading to China and the west coast of

America that great inconvenience and loss are experienced from the fact

that our coins are not current at their par value in those countries.

The powers of Europe, far removed from the west coast of America by

the Atlantic Ocean, which intervenes, and by a tedious and dangerous

navigation around the southern cape of the continent of America, can

never successfully compete with the United States in the rich and

extensive commerce which is opened to us at so much less cost by the

acquisition of California.

The vast importance and commercial advantages of California have

heretofore remained undeveloped by the Government of the country of

which it constituted a part. Now that this fine province is a part of

our country, all the States of the Union, some more immediately and

directly than others, are deeply interested in the speedy development of

its wealth and resources. No section of our country is more interested

or will be more benefited than the commercial, navigating, and

manufacturing interests of the Eastern States. Our planting and farming

interests in every part of the Union will be greatly benefited by it.

As our commerce and navigation are enlarged and extended, our exports of

agricultural products and of manufactures will be increased, and in the

new markets thus opened they can not fail to command remunerating and

profitable prices.

The acquisition of California and New Mexico, the settlement of the

Oregon boundary, and the annexation of Texas, extending to the Rio

Grande, are results which, combined, are of greater consequence and will

add more to the strength and wealth of the nation than any which have

preceded them since the adoption of the Constitution.

But to effect these great results not only California, but New Mexico,

must be brought under the control of regularly organized governments.

The existing condition of California and of that part of New Mexico

lying west of the Rio Grande and without the limits of Texas imperiously

demands that Congress should at its present session organize Territorial

governments over them.

Upon the exchange of ratifications of the treaty of peace with Mexico,

on the 30th of May last, the temporary governments which had been

established over New Mexico and California by our military and naval

commanders by virtue of the rights of war ceased to derive any

obligatory force from that source of authority, and having been ceded

to the United States, all government and control over them under the

authority of Mexico had ceased to exist. Impressed with the necessity

of establishing Territorial governments over them, I recommended the

subject to the favorable consideration of Congress in my message

communicating the ratified treaty of peace, on the 6th of July last, and

invoked their action at that session. Congress adjourned without making

any provision for their government. The inhabitants by the transfer

of their country had become entitled to the benefit of our laws and

Constitution, and yet were left without any regularly organized

government. Since that time the very limited power possessed by the

Executive has been exercised to preserve and protect them from the

inevitable consequences of a state of anarchy. The only government which

remained was that established by the military authority during the war.

Regarding this to be a _de facto_ government, and that by the presumed

consent of the inhabitants it might be continued temporarily, they were

advised to conform and submit to it for the short intervening period

before Congress would again assemble and could legislate on the subject.

The views entertained by the Executive on this point are contained in a

communication of the Secretary of State dated the 7th of October last,

which was forwarded for publication to California and New Mexico,

a copy of which is herewith transmitted. The small military force of

the Regular Army which was serving within the limits of the acquired

territories at the close of the war was retained in them, and additional

forces have been ordered there for the protection of the inhabitants and

to preserve and secure the rights and interests of the United States.

No revenue has been or could be collected at the ports in California,

because Congress failed to authorize the establishment of custom-houses

or the appointment of officers for that purpose.

The Secretary of the Treasury, by a circular letter addressed to

collectors of the customs on the 7th day of October last, a copy of

which is herewith transmitted, exercised all the power with which he

was invested by law.

In pursuance of the act of the 14th of August last, extending the

benefit of our post-office laws to the people of California, the

Postmaster-General has appointed two agents, who have proceeded, the

one to California and the other to Oregon, with authority to make the

necessary arrangements for carrying its provisions into effect.

The monthly line of mail steamers from Panama to Astoria has been

required to "stop and deliver and take mails at San Diego, Monterey, and

San Francisco." These mail steamers, connected by the Isthmus of Panama

with the line of mail steamers on the Atlantic between New York and

Chagres, will establish a regular mail communication with California.

It is our solemn duty to provide with the least practicable delay for

New Mexico and California regularly organized Territorial governments.

The causes of the failure to do this at the last session of Congress are

well known and deeply to be regretted. With the opening prospects of

increased prosperity and national greatness which the acquisition of

these rich and extensive territorial possessions affords, how irrational

it would be to forego or to reject these advantages by the agitation of

a domestic question which is coeval with the existence of our Government

itself, and to endanger by internal strifes, geographical divisions, and

heated contests for political power, or for any other cause, the harmony

of the glorious Union of our confederated States--that Union which binds

us together as one people, and which for sixty years has been our shield

and protection against every danger. In the eyes of the world and of

posterity how trivial and insignificant will be all our internal

divisions and struggles compared with the preservation of this Union

of the States in all its vigor and with all its countless blessings!

No patriot would foment and excite geographical and sectional divisions.

No lover of his country would deliberately calculate the value of the

Union. Future generations would look in amazement upon the folly of such

a course. Other nations at the present day would look upon it with

astonishment, and such of them as desire to maintain and perpetuate

thrones and monarchical or aristocratical principles will view it with

exultation and delight, because in it they will see the elements of

faction, which they hope must ultimately overturn our system. Ours is

the great example of a prosperous and free self-governed republic,

commanding the admiration and the imitation of all the lovers of freedom

throughout the world. How solemn, therefore, is the duty, how impressive

the call upon us and upon all parts of our country, to cultivate a

patriotic spirit of harmony, of good-fellowship, of compromise and

mutual concession, in the administration of the incomparable system of

government formed by our fathers in the midst of almost insuperable

difficulties, and transmitted to us with the injunction that we should

enjoy its blessings and hand it down unimpaired to those who may come

after us.

In view of the high and responsible duties which we owe to ourselves and

to mankind, I trust you may be able at your present session to approach

the adjustment of the only domestic question which seriously threatens,

or probably ever can threaten, to disturb the harmony and successful

operations of our system.

The immensely valuable possessions of New Mexico and California are

already inhabited by a considerable population. Attracted by their great

fertility, their mineral wealth, their commercial advantages, and the

salubrity of the climate, emigrants from the older States in great

numbers are already preparing to seek new homes in these inviting

regions. Shall the dissimilarity of the domestic institutions in the

different States prevent us from providing for them suitable

governments? These institutions existed at the adoption of the

Constitution, but the obstacles which they interposed were overcome

by that spirit of compromise which is now invoked. In a conflict of

opinions or of interests, real or imaginary, between different sections

of our country, neither can justly demand all which it might desire to

obtain. Each, in the true spirit of our institutions, should concede

something to the other.

Our gallant forces in the Mexican war, by whose patriotism and

unparalleled deeds of arms we obtained these possessions as an indemnity

for our just demands against Mexico, were composed of citizens who

belonged to no one State or section of our Union. They were men from

slave-holding and nonslaveholding States, from the North and the South,

from the East and the West. They were all companions in arms and

fellow-citizens of the same common country, engaged in the same common

cause. When prosecuting that war they were brethren and friends, and

shared alike with each other common toils, dangers, and sufferings. Now,

when their work is ended, when peace is restored, and they return again

to their homes, put off the habiliments of war, take their places in

society, and resume their pursuits in civil life, surely a spirit of

harmony and concession and of equal regard for the rights of all and of

all sections of the Union ought to prevail in providing governments for

the acquired territories--the fruits of their common service. The whole

people of the United States, and of every State, contributed to defray

the expenses of that war, and it would not be just for any one section

to exclude another from all participation in the acquired territory.

This would not be in consonance with the just system of government which

the framers of the Constitution adopted.

The question is believed to be rather abstract than practical, whether

slavery ever can or would exist in any portion of the acquired territory

even if it were left to the option of the slaveholding States

themselves. From the nature of the climate and productions in much the

larger portion of it it is certain it could never exist, and in the

remainder the probabilities are it would not. But however this may be,

the question, involving, as it does, a principle of equality of rights

of the separate and several States as equal copartners in the

Confederacy, should not be disregarded.

In organizing governments over these territories no duty imposed on

Congress by the Constitution requires that they should legislate on the

subject of slavery, while their power to do so is not only seriously

questioned, but denied by many of the soundest expounders of that

instrument. Whether Congress shall legislate or not, the people of

the acquired territories, when assembled in convention to form State

constitutions, will possess the sole and exclusive power to determine

for themselves whether slavery shall or shall not exist within their

limits. If Congress shall abstain from interfering with the question,

the people of these territories will be left free to adjust it as they

may think proper when they apply for admission as States into the Union.

No enactment of Congress could restrain the people of any of the

sovereign States of the Union, old or new, North or South, slaveholding

or nonslaveholding, from determining the character of their own domestic

institutions as they may deem wise and proper. Any and all the States

possess this right, and Congress can not deprive them of it. The people

of Georgia might if they chose so alter their constitution as to abolish

slavery within its limits, and the people of Vermont might so alter

their constitution as to admit slavery within its limits. Both States

would possess the right, though, as all know, it is not probable that

either would exert it.

It is fortunate for the peace and harmony of the Union that this

question is in its nature temporary and can only continue for the brief

period which will intervene before California and New Mexico may be

admitted as States into the Union. From the tide of population now

flowing into them it is highly probable that this will soon occur.

Considering the several States and the citizens of the several States as

equals and entitled to equal rights under the Constitution, if this were

an original question it might well be insisted on that the principle of

noninterference is the true doctrine and that Congress could not, in the

absence of any express grant of power, interfere with their relative

rights. Upon a great emergency, however, and under menacing dangers

to the Union, the Missouri compromise line in respect to slavery was

adopted. The same line was extended farther west in the acquisition of

Texas. After an acquiescence of nearly thirty years in the principle of

compromise recognized and established by these acts, and to avoid the

danger to the Union which might follow if it were now disregarded,

I have heretofore expressed the opinion that that line of compromise

should be extended on the parallel of 36° 30' from the western boundary

of Texas, where it now terminates, to the Pacific Ocean. This is the

middle ground of compromise, upon which the different sections of the

Union may meet, as they have heretofore met. If this be done, it is

confidently believed a large majority of the people of every section of

the country, however widely their abstract opinions on the subject of

slavery may differ, would cheerfully and patriotically acquiesce in it,

and peace and harmony would again fill our borders.

The restriction north of the line was only yielded to in the case of

Missouri and Texas upon a principle of compromise, made necessary for

the sake of preserving the harmony and possibly the existence of the

Union.

It was upon these considerations that at the close of your last session

I gave my sanction to the principle of the Missouri compromise line by

approving and signing the bill to establish "the Territorial government

of Oregon." From a sincere desire to preserve the harmony of the Union,

and in deference for the acts of my predecessors, I felt constrained

to yield my acquiescence to the extent to which they had gone in

compromising this delicate and dangerous question. But if Congress shall

now reverse the decision by which the Missouri compromise was effected,

and shall propose to extend the restriction over the whole territory,

south as well as north of the parallel of 36° 30', it will cease to be

a compromise, and must be regarded as an original question.

If Congress, instead of observing the course of noninterference, leaving

the adoption of their own domestic institutions to the people who may

inhabit these territories, or if, instead of extending the Missouri

compromise line to the Pacific, shall prefer to submit the legal and

constitutional questions which may arise to the decision of the judicial

tribunals, as was proposed in a bill which passed the Senate at your

last session, an adjustment may be effected in this mode. If the whole

subject be referred to the judiciary, all parts of the Union should

cheerfully acquiesce in the final decision of the tribunal created by

the Constitution for the settlement of all questions which may arise

under the Constitution, treaties, and laws of the United States.

Congress is earnestly invoked, for the sake of the Union, its harmony,

and our continued prosperity as a nation, to adjust at its present

session this, the only dangerous question which lies in our path, if

not in some one of the modes suggested, in some other which may be

satisfactory.

In anticipation of the establishment of regular governments over the

acquired territories, a joint commission of officers of the Army and

Navy has been ordered to proceed to the coast of California and Oregon

for the purpose of making reconnoissances and a report as to the proper

sites for the erection of fortifications or other defensive works on

land and of suitable situations for naval stations. The information

which may be expected from a scientific and skillful examination of the

whole face of the coast will be eminently useful to Congress when they

come to consider the propriety of making appropriations for these great

national objects. Proper defenses on land will be necessary for the

security and protection of our possessions, and the establishment of

navy-yards and a dock for the repair and construction of vessels will

be important alike to our Navy and commercial marine. Without such

establishments every vessel, whether of the Navy or of the merchant

service, requiring repair must at great expense come round Cape Horn to

one of our Atlantic yards for that purpose. With such establishments

vessels, it is believed, may be built or repaired as cheaply in

California as upon the Atlantic coast. They would give employment

to many of our enterprising shipbuilders and mechanics and greatly

facilitate and enlarge our commerce in the Pacific.

As it is ascertained that mines of gold, silver, copper, and quicksilver

exist in New Mexico and California, and that nearly all the lands where

they are found belong to the United States, it is deemed important to

the public interest that provision be made for a geological and

mineralogical examination of these regions. Measures should be adopted

to preserve the mineral lands, especially such as contain the precious

metals, for the use of the United States, or, if brought into market, to

separate them from the farming lands and dispose of them in such manner

as to secure a large return of money to the Treasury and at the same

time to lead to the development of their wealth by individual

proprietors and purchasers. To do this it will be necessary to provide

for an immediate survey and location of the lots. If Congress should

deem it proper to dispose of the mineral lands, they should be sold in

small quantities and at a fixed minimum price.

I recommend that surveyors-general's offices be authorized to be

established in New Mexico and California and provision made for

surveying and bringing the public lands into market at the earliest

practicable period. In disposing of these lands, I recommend that the

right of preemption be secured and liberal grants made to the early

emigrants who have settled or may settle upon them.

It will be important to extend our revenue laws over these territories,

and especially over California, at an early period. There is already a

considerable commerce with California, and until ports of entry shall be

established and collectors appointed no revenue can be received.

If these and other necessary and proper measures be adopted for the

development of the wealth and resources of New Mexico and California and

regular Territorial governments be established over them, such will

probably be the rapid enlargement of our commerce and navigation and

such the addition to the national wealth that the present generation may

live to witness the controlling commercial and monetary power of the

world transferred from London and other European emporiums to the city

of New York.

The apprehensions which were entertained by some of our statesmen in the

earlier periods of the Government that our system was incapable of

operating with sufficient energy and success over largely extended

territorial limits, and that if this were attempted it would fall to

pieces by its own weakness, have been dissipated by our experience. By

the division of power between the States and Federal Government the

latter is found to operate with as much energy in the extremes as in the

center. It is as efficient in the remotest of the thirty States which

now compose the Union as it was in the thirteen States which formed our

Constitution. Indeed, it may well be doubted whether if our present

population had been confined within the limits of the original thirteen

States the tendencies to centralization and consolidation would not have

been such as to have encroached upon the essential reserved rights of

the States, and thus to have made the Federal Government a widely

different one, practically, from what it is in theory and was intended

to be by its framers. So far from entertaining apprehensions of the

safety of our system by the extension of our territory, the belief is

confidently entertained that each new State gives strength and an

additional guaranty for the preservation of the Union itself.

In pursuance of the provisions of the thirteenth article of the treaty

of peace, friendship, limits, and settlement with the Republic of

Mexico, and of the act of July 29, 1848, claims of our citizens, which

had been "already liquidated and decided, against the Mexican Republic"

amounting, with the interest thereon, to $2,023,832.51 have been

liquidated and paid. There remain to be paid of these claims $74,192.26.

Congress at its last session having made no provision for executing the

fifteenth article of the treaty, by which the United States assume to

make satisfaction for the "unliquidated claims" of our citizens against

Mexico to "an amount not exceeding three and a quarter millions of

dollars," the subject is again recommended to your favorable

consideration.

The exchange of ratifications of the treaty with Mexico took place on

the 30th of May, 1848. Within one year after that time the commissioner

and surveyor which each Government stipulates to appoint are required

to meet "at the port of San Diego and proceed to run and mark the said

boundary in its whole course to the mouth of the Rio Bravo del Norte."

It will be seen from this provision that the period within which a

commissioner and surveyor of the respective Governments are to meet at

San Diego will expire on the 30th of May, 1849. Congress at the close of

its last session made an appropriation for "the expenses of running and

marking the boundary line" between the two countries, but did not fix

the amount of salary which should be paid to the commissioner and

surveyor to be appointed on the part of the United States. It is

desirable that the amount of compensation which they shall receive

should be prescribed by law, and not left, as at present, to Executive

discretion.

Measures were adopted at the earliest practicable period to organize the

"Territorial government of Oregon," as authorized by the act of the 14th

of August last. The governor and marshal of the Territory, accompanied

by a small military escort, left the frontier of Missouri in September

last, and took the southern route, by the way of Santa Fe and the river

Gila, to California, with the intention of proceeding thence in one of

our vessels of war to their destination. The governor was fully advised

of the great importance of his early arrival in the country, and it is

confidently believed he may reach Oregon in the latter part of the

present month or early in the next. The other officers for the Territory

have proceeded by sea.

In the month of May last I communicated information to Congress that

an Indian war had broken out in Oregon, and recommended that authority

be given to raise an adequate number of volunteers to proceed without

delay to the assistance of our fellow-citizens in that Territory. The

authority to raise such a force not having been granted by Congress,

as soon as their services could be dispensed with in Mexico orders were

issued to the regiment of mounted riflemen to proceed to Jefferson

Barracks, in Missouri, and to prepare to march to Oregon as soon as

the necessary provision could be made. Shortly before it was ready to

march it was arrested by the provision of the act passed by Congress

on the last day of the last session, which directed that all the

noncommissioned officers, musicians, and privates of that regiment who

had been in service in Mexico should, upon their application, be

entitled to be discharged. The effect of this provision was to disband

the rank and file of the regiment, and before their places could be

filled by recruits the season had so far advanced that it was

impracticable for it to proceed until the opening of the next spring.

In the month of October last the accompanying communication was received

from the governor of the temporary government of Oregon, giving

information of the continuance of the Indian disturbances and of the

destitution and defenseless condition of the inhabitants. Orders were

immediately transmitted to the commander of our squadron in the Pacific

to dispatch to their assistance a part of the naval forces on that

station, to furnish them with arms and ammunition, and to continue to

give them such aid and protection as the Navy could afford until the

Army could reach the country.

It is the policy of humanity, and one which has always been pursued by

the United States, to cultivate the good will of the aboriginal tribes

of this continent and to restrain them from making war and indulging in

excesses by mild means rather than by force. That this could have been

done with the tribes in Oregon had that Territory been brought under the

government of our laws at an earlier period, and had other suitable

measures been adopted by Congress, such as now exist in our intercourse

with the other Indian tribes within our limits, can not be doubted.

Indeed, the immediate and only cause of the existing hostility of the

Indians of Oregon is represented to have been the long delay of the

United States in making to them some trifling compensation, in such

articles as they wanted, for the country now occupied by our emigrants,

which the Indians claimed and over which they formerly roamed. This

compensation had been promised to them by the temporary government

established in Oregon, but its fulfillment had been postponed from time

to time for nearly two years, whilst those who made it had been

anxiously waiting for Congress to establish a Territorial government

over the country. The Indians became at length distrustful of their good

faith and sought redress by plunder and massacre, which finally led to

the present difficulties. A few thousand dollars in suitable presents,

as a compensation for the country which had been taken possession of by

our citizens, would have satisfied the Indians and have prevented the

war. A small amount properly distributed, it is confidently believed,

would soon restore quiet. In this Indian war our fellow-citizens of

Oregon have been compelled to take the field in their own defense, have

performed valuable military services, and been subjected to expenses

which have fallen heavily upon them. Justice demands that provision

should be made by Congress to compensate them for their services and to

refund to them the necessary expenses which they have incurred.

I repeat the recommendation heretofore made to Congress, that provision

be made for the appointment of a suitable number of Indian agents to

reside among the tribes of Oregon, and that a small sum be appropriated

to enable these agents to cultivate friendly relations with them. If

this be done, the presence of a small military force will be all that is

necessary to keep them in check and preserve peace. I recommend that

similar provisions be made as regards the tribes inhabiting northern

Texas, New Mexico, California, and the extensive region lying between

our settlements in Missouri and these possessions, as the most effective

means of preserving peace upon our borders and within the recently

acquired territories.

The Secretary of the Treasury will present in his annual report a highly

satisfactory statement of the condition of the finances.

The imports for the fiscal year ending on the 30th of June last were of

the value of $154,977,876, of which the amount exported was $21,128,010,

leaving $133,849,866 in the country for domestic use. The value of the

exports for the same period was $154,032,131, consisting of domestic

productions amounting to $132,904,121 and $21,128,010 of foreign

articles. The receipts into the Treasury for the same period, exclusive

of loans, amounted to $35,436,750.59, of which there was derived from

customs $31,757,070.96, from sales of public lands $3,328,642.56, and

from miscellaneous and incidental sources $351,037.07.

It will be perceived that the revenue from customs for the last fiscal

year exceeded by $757,070.96 the estimate of the Secretary of the

Treasury in his last annual report, and that the aggregate receipts

during the same period from customs, lands, and miscellaneous sources

also exceeded the estimate by the sum of $536,750.59, indicating,

however, a very near approach in the estimate to the actual result.

The expenditures during the fiscal year ending on the 30th of June last,

including those for the war and exclusive of payments of principal and

interest for the public debt, were $42,811,970.03.

It is estimated that the receipts into the Treasury for the fiscal year

ending on the 30th of June, 1849, including the balance in the Treasury

on the 1st of July last, will amount to the sum of $57,048,969.90, of

which $32,000,000, it is estimated, will be derived from customs,

$3,000,000 from the sales of the public lands, and $1,200,000 from

miscellaneous and incidental sources, including the premium upon the

loan, and the amount paid and to be paid into the Treasury on account of

military contributions in Mexico, and the sales of arms and vessels and

other public property rendered unnecessary for the use of the Government

by the termination of the war, and $20,695,435.30 from loans already

negotiated, including Treasury notes funded, which, together with the

balance in the Treasury on the 1st of July last, make the sum estimated.

The expenditures for the same period, including the necessary payment on

account of the principal and interest of the public debt, and the

principal and interest of the first installment due to Mexico on the

30th of May next, and other expenditures growing out of the war to be

paid during the present year, will amount, including the reimbursement

of Treasury notes, to the sum of $54,195,275.06, leaving an estimated

balance in the Treasury on the 1st of July, 1849, of $2,853,694.84.

The Secretary of the Treasury will present, as required by law, the

estimate of the receipts and expenditures for the next fiscal year. The

expenditures as estimated for that year are $33,213,152.73, including

$3,799,102.18 for the interest on the public debt and $3,540,000 for the

principal and interest due to Mexico on the 30th of May, 1850, leaving

the sum of $25,874,050.35, which, it is believed, will be ample for the

ordinary peace expenditures.

The operations of the tariff act of 1846 have been such during the past

year as fully to meet the public expectation and to confirm the opinion

heretofore expressed of the wisdom of the change in our revenue system

which was effected by it. The receipts under it into the Treasury for

the first fiscal year after its enactment exceeded by the sum of

$5,044,403.09 the amount collected during the last fiscal year under the

tariff act of 1842, ending the 30th of June, 1846. The total revenue

realized from the commencement of its operation, on the 1st of December,

1846, until the close of the last quarter, on the 30th of September

last, being twenty-two months, was $56,654,563.79, being a much larger

sum than was ever before received from duties during any equal period

under the tariff acts of 1824, 1828, 1832, and 1842. Whilst by the

repeal of highly protective and prohibitory duties the revenue has been

increased, the taxes on the people have been diminished. They have been

relieved from the heavy amounts with which they were burthened under

former laws in the form of increased prices or bounties paid to favored

classes and pursuits.

The predictions which were made that the tariff act of 1846 would reduce

the amount of revenue below that collected under the act of 1842, and

would prostrate the business and destroy the prosperity of the country,

have not been verified. With an increased and increasing revenue, the

finances are in a highly flourishing condition. Agriculture, commerce,

and navigation are prosperous; the prices of manufactured fabrics and of

other products are much less injuriously affected than was to have been

anticipated from the unprecedented revulsions which during the last and

the present year have overwhelmed the industry and paralyzed the credit

and commerce of so many great and enlightened nations of Europe.

Severe commercial revulsions abroad have always heretofore operated to

depress and often to affect disastrously almost every branch of American

industry. The temporary depression of a portion of our manufacturing

interests is the effect of foreign causes, and is far less severe than

has prevailed on all former similar occasions.

It is believed that, looking to the great aggregate of all our

interests, the whole country was never more prosperous than at the

present period, and never more rapidly advancing in wealth and

population. Neither the foreign war in which we have been involved, nor

the loans which have absorbed so large a portion of our capital, nor the

commercial revulsion in Great Britain in 1847, nor the paralysis of

credit and commerce throughout Europe in 1848, have affected injuriously

to any considerable extent any of the great interests of the country or

arrested our onward march to greatness, wealth, and power.

Had the disturbances in Europe not occurred, our commerce would

undoubtedly have been still more extended, and would have added still

more to the national wealth and public prosperity. But notwithstanding

these disturbances, the operations of the revenue system established

by the tariff act of 1846 have been so generally beneficial to the

Government and the business of the country that no change in its

provisions is demanded by a wise public policy, and none is recommended.

The operations of the constitutional treasury established by the act of

the 6th of August, 1846, in the receipt, custody, and disbursement of

the public money have continued to be successful. Under this system the

public finances have been carried through a foreign war, involving the

necessity of loans and extraordinary expenditures and requiring distant

transfers and disbursements, without embarrassment, and no loss has

occurred of any of the public money deposited under its provisions.

Whilst it has proved to be safe and useful to the Government, its

effects have been most beneficial upon the business of the country. It

has tended powerfully to secure an exemption from that inflation and

fluctuation of the paper currency so injurious to domestic industry

and rendering so uncertain the rewards of labor, and, it is believed,

has largely contributed to preserve the whole country from a serious

commercial revulsion, such as often occurred under the bank deposit

system. In the year 1847 there was a revulsion in the business of Great

Britain of great extent and intensity, which was followed by failures

in that Kingdom unprecedented in number and amount of losses. This is

believed to be the first instance when such disastrous bankruptcies,

occurring in a country with which we have such extensive commerce,

produced little or no injurious effect upon our trade or currency.

We remained but little affected in our money market, and our business

and industry were still prosperous and progressive.

During the present year nearly the whole continent of Europe has been

convulsed by civil war and revolutions, attended by numerous

bankruptcies, by an unprecedented fall in their public securities, and

an almost universal paralysis of commerce and industry; and yet,

although our trade and the prices of our products must have been

somewhat unfavorably affected by these causes, we have escaped a

revulsion, our money market is comparatively easy, and public and

private credit have advanced and improved.

It is confidently believed that we have been saved from their effect by

the salutary operation of the constitutional treasury. It is certain

that if the twenty-four millions of specie imported into the country

during the fiscal year ending on the 30th of June, 1847, had gone into

the banks, as to a great extent it must have done, it would in the

absence of this system have been made the basis of augmented bank paper

issues, probably to an amount not less than $60,000,000 or $70,000,000,

producing, as an inevitable consequence of an inflated currency,

extravagant prices for a time and wild speculation, which must have been

followed, on the reflux to Europe the succeeding year of so much of that

specie, by the prostration of the business of the country, the

suspension of the banks, and most extensive bankruptcies. Occurring, as

this would have done, at a period when the country was engaged in a

foreign war, when considerable loans of specie were required for distant

disbursements, and when the banks, the fiscal agents of the Government

and the depositories of its money, were suspended, the public credit

must have sunk, and many millions of dollars, as was the case during the

War of 1812, must have been sacrificed in discounts upon loans and upon

the depreciated paper currency which the Government would have been

compelled to use.

Under the operations of the constitutional treasury not a dollar has

been lost by the depreciation of the currency. The loans required to

prosecute the war with Mexico were negotiated by the Secretary of the

Treasury above par, realizing a large premium to the Government. The

restraining effect of the system upon the tendencies to excessive paper

issues by banks has saved the Government from heavy losses and thousands

of our business men from bankruptcy and ruin. The wisdom of the system

has been tested by the experience of the last two years, and it is

the dictate of sound policy that it should remain undisturbed. The

modifications in some of the details of this measure, involving none of

its essential principles, heretofore recommended, are again presented

for your favorable consideration.

In my message of the 6th of July last, transmitting to Congress the

ratified treaty of peace with Mexico, I recommended the adoption of

measures for the speedy payment of the public debt. In reiterating that

recommendation I refer you to the considerations presented in that

message in its support. The public debt, including that authorized to be

negotiated in pursuance of existing laws, and including Treasury notes,

amounted at that time to $65,778,450.41.

Funded stock of the United States amounting to about half a million of

dollars has been purchased, as authorized by law, since that period, and

the public debt has thus been reduced, the details of which will be

presented in the annual report of the Secretary of the Treasury.

The estimates of expenditures for the next fiscal year, submitted by

the Secretary of the Treasury, it is believed will be ample for all

necessary purposes. If the appropriations made by Congress shall not

exceed the amount estimated, the means in the Treasury will be

sufficient to defray all the expenses of the Government, to pay off the

next installment of $3,000,000 to Mexico, which will fall due on the

30th of May next, and still a considerable surplus will remain, which

should be applied to the further purchase of the public stock and

reduction of the debt. Should enlarged appropriations be made, the

necessary consequence will be to postpone the payment of the debt.

Though our debt, as compared with that of most other nations, is small,

it is our true policy, and in harmony with the genius of our

institutions, that we should present to the world the rare spectacle of

a great Republic, possessing vast resources and wealth, wholly exempt

from public indebtedness. This would add still more to our strength,

and give to us a still more commanding position among the nations of

the earth.

The public expenditures should be economical, and be confined to such

necessary objects as are clearly within the powers of Congress. All such

as are not absolutely demanded should be postponed, and the payment of

the public debt at the earliest practicable period should be a cardinal

principle of our public policy.

For the reason assigned in my last annual message, I repeat the

recommendation that a branch of the Mint of the United States be

established at the city of New York. The importance of this measure is

greatly increased by the acquisition of the rich mines of the precious

metals in New Mexico and California, and especially in the latter.

I repeat the recommendation heretofore made in favor of the graduation

and reduction of the price of such of the public lands as have been long

offered in the market and have remained unsold, and in favor of

extending the rights of preemption to actual settlers on the unsurveyed

as well as the surveyed lands.

The condition and operations of the Army and the state of other branches

of the public service under the supervision of the War Department are

satisfactorily presented in the accompanying report of the Secretary of

War.

On the return of peace our forces were withdrawn from Mexico, and the

volunteers and that portion of the Regular Army engaged for the war were

disbanded. Orders have been issued for stationing the forces of our

permanent establishment at various positions in our extended country

where troops may be required. Owing to the remoteness of some of these

positions, the detachments have not yet reached their destination.

Notwithstanding the extension of the limits of our country and the

forces required in the new territories, it is confidently believed that

our present military establishment is sufficient for all exigencies so

long as our peaceful relations remain undisturbed.

Of the amount of military contributions collected in Mexico, the sum of

$769,650 was applied toward the payment of the first installment due

under the treaty with Mexico. The further sum of $346,369.30 has been

paid into the Treasury, and unexpended balances still remain in the

hands of disbursing officers and those who were engaged in the

collection of these moneys. After the proclamation of peace no further

disbursements were made of any unexpended moneys arising from this

source. The balances on hand were directed to be paid into the Treasury,

and individual claims on the fund will remain unadjusted until Congress

shall authorize their settlement and payment. These claims are not

considerable in number or amount.

I recommend to your favorable consideration the suggestions of the

Secretary of War and the Secretary of the Navy in regard to legislation

on this subject.

Our Indian relations are presented in a most favorable view in the

report from the War Department. The wisdom of our policy in regard to

the tribes within our limits is clearly manifested by their improved and

rapidly improving condition.

A most important treaty with the Menomonies has been recently negotiated

by the Commissioner of Indian Affairs in person, by which all their land

in the State of Wisconsin--being about 4,000,000 acres--has been ceded

to the United States. This treaty will be submitted to the Senate for

ratification at an early period of your present session.

Within the last four years eight important treaties have been negotiated

with different Indian tribes, and at a cost of $1,842,000; Indian lands

to the amount of more than 18,500,000 acres have been ceded to the

United States, and provision has been made for settling in the country

west of the Mississippi the tribes which occupied this large extent of

the public domain. The title to all the Indian lands within the several

States of our Union, with the exception of a few small reservations, is

now extinguished, and a vast region opened for settlement and

cultivation.

The accompanying report of the Secretary of the Navy gives a

satisfactory exhibit of the operations and condition of that branch of

the public service.

A number of small vessels, suitable for entering the mouths of rivers,

were judiciously purchased during the war, and gave great efficiency to

the squadron in the Gulf of Mexico. On the return of peace, when no

longer valuable for naval purposes, and liable to constant

deterioration, they were sold and the money placed in the Treasury.

The number of men in the naval service authorized by law during the war

has been reduced by discharges below the maximum fixed for the peace

establishment. Adequate squadrons are maintained in the several quarters

of the globe where experience has shown their services may be most

usefully employed, and the naval service was never in a condition of

higher discipline or greater efficiency.

I invite attention to the recommendation of the Secretary of the Navy

on the subject of the Marine Corps. The reduction of the Corps at the

end of the war required that four officers of each of the three lower

grades should be dropped from the rolls. A board of officers made the

selection, and those designated were necessarily dismissed, but without

any alleged fault. I concur in opinion with the Secretary that the

service would be improved by reducing the number of landsmen and

increasing the marines. Such a measure would justify an increase of

the number of officers to the extent of the reduction by dismissal,

and still the Corps would have fewer officers than a corresponding

number of men in the Army.

The contracts for the transportation of the mail in steamships,

convertible into war steamers, promise to realize all the benefits to

our commerce and to the Navy which were anticipated. The first steamer

thus secured to the Government was launched in January, 1847. There are

now seven, and in another year there will probably be not less than

seventeen afloat. While this great national advantage is secured, our

social and commercial intercourse is increased and promoted with

Germany, Great Britain, and other parts of Europe, with all the

countries on the west coast of our continent, especially with Oregon and

California, and between the northern and southern sections of the United

States. Considerable revenue may be expected from postages, but the

connected line from New York to Chagres, and thence across the Isthmus

to Oregon, can not fail to exert a beneficial influence, not now to be

estimated, on the interests of the manufactures, commerce, navigation,

and currency of the United States. As an important part of the system,

I recommend to your favorable consideration the establishment of the

proposed line of steamers between New Orleans and Vera Cruz. It promises

the most happy results in cementing friendship between the two Republics

and extending reciprocal benefits to the trade and manufactures of both.

The report of the Postmaster-General will make known to you the

operations of that Department for the past year.

It is gratifying to find the revenues of the Department, under the rates

of postage now established by law, so rapidly increasing. The gross

amount of postages during the last fiscal year amounted to $4,371,077,

exceeding the annual average received for the nine years immediately

preceding the passage of the act of the 3d of March, 1845, by the sum of

$6,453, and exceeding the amount received for the year ending the 30th

of June, 1847, by the sum of $425,184.

The expenditures for the year, excluding the sum of $94,672, allowed by

Congress at its last session to individual claimants, and including the

sum of $100,500, paid for the services of the line of steamers between

Bremen and New York, amounted to $4,198,845, which is less than the

annual average for the nine years previous to the act of 1845 by

$300,748.

The mail routes on the 30th day of June last were 163,208 miles in

extent, being an increase during the last year of 9,390 miles. The mails

were transported over them during the same time 41,012,579 miles, making

an increase of transportation for the year of 2,124,680 miles, whilst

the expense was less than that of the previous year by $4,235.

The increase in the mail transportation within the last three years has

been 5,378,310 miles, whilst the expenses were reduced $456,738, making

an increase of service at the rate of 15 per cent and a reduction in the

expenses of more than 15 per cent.

During the past year there have been employed, under contracts with the

Post-Office Department, two ocean steamers in conveying the mails

monthly between New York and Bremen, and one, since October last,

performing semimonthly service between Charleston and Havana; and a

contract has been made for the transportation of the Pacific mails

across the Isthmus from Chagres to Panama.

Under the authority given to the Secretary of the Navy, three ocean

steamers have been constructed and sent to the Pacific, and are expected

to enter upon the mail service between Panama and Oregon and the

intermediate ports on the 1st of January next; and a fourth has been

engaged by him for the service between Havana and Chagres, so that a

regular monthly mail line will be kept up after that time between the

United States and our territories on the Pacific.

Notwithstanding this great increase in the mail service, should the

revenue continue to increase the present year as it did in the last,

there will be received near $450,000 more than the expenditures.

These considerations have satisfied the Postmaster-General that, with

certain modifications of the act of 1845, the revenue may be still

further increased and a reduction of postages made to a uniform rate of

5 cents, without an interference with the principle, which has been

constantly and properly enforced, of making that Department sustain

itself.

A well-digested cheap-postage system is the best means of diffusing

intelligence among the people, and is of so much importance in a country

so extensive as that of the United States that I recommend to your

favorable consideration the suggestions of the Postmaster-General for

its improvement.

Nothing can retard the onward progress of our country and prevent us

from assuming and maintaining the first rank among nations but a

disregard of the experience of the past and a recurrence to an unwise

public policy. We have just closed a foreign war by an honorable

peace--a war rendered necessary and unavoidable in vindication of the

national rights and honor. The present condition of the country is

similar in some respects to that which existed immediately after the

close of the war with Great Britain in 1815, and the occasion is deemed

to be a proper one to take a retrospect of the measures of public policy

which followed that war. There was at that period of our history a

departure from our earlier policy. The enlargement of the powers of the

Federal Government by _construction_, which obtained, was not warranted

by any just interpretation of the Constitution. A few years after the

close of that war a series of measures was adopted which, united and

combined, constituted what was termed by their authors and advocates the

"American system."

The introduction of the new policy was for a time favored by the

condition of the country, by the heavy debt which had been contracted

during the war, by the depression of the public credit, by the deranged

state of the finances and the currency, and by the commercial and

pecuniary embarrassment which extensively prevailed. These were not the

only causes which led to its establishment. The events of the war with

Great Britain and the embarrassments which had attended its prosecution

had left on the minds of many of our statesmen the impression that our

Government was not strong enough, and that to wield its resources

successfully in great emergencies, and especially in war, more power

should be concentrated in its hands. This increased power they did not

seek to obtain by the legitimate and prescribed mode--an amendment of

the Constitution--but by _construction_. They saw Governments in the Old

World based upon different orders of society, and so constituted as to

throw the whole power of nations into the hands of a few, who taxed and

controlled the many without responsibility or restraint. In that

arrangement they conceived the strength of nations in war consisted.

There was also something fascinating in the ease, luxury, and display of

the higher orders, who drew their wealth from the toil of the laboring

millions. The authors of the system drew their ideas of political

economy from what they had witnessed in Europe, and particularly in

Great Britain. They had viewed the enormous wealth concentrated in few

hands and had seen the splendor of the overgrown establishments of an

aristocracy which was upheld by the restrictive policy. They forgot to

look down upon the poorer classes of the English population, upon whose

daily and yearly labor the great establishments they so much admired

were sustained and supported. They failed to perceive that the scantily

fed and half-clad operatives were not only in abject poverty, but were

bound in chains of oppressive servitude for the benefit of favored

classes, who were the exclusive objects of the care of the Government.

It was not possible to reconstruct society in the United States upon the

European plan. Here there was a written Constitution, by which orders

and titles were not recognized or tolerated. A system of measures was

therefore devised, calculated, if not intended, to withdraw power

gradually and silently from the States and the mass of the people, and

by _construction_ to approximate our Government to the European models,

substituting an aristocracy of wealth for that of orders and titles.

Without reflecting upon the dissimilarity of our institutions and of the

condition of our people and those of Europe, they conceived the vain

idea of building up in the United States a system similar to that which

they admired abroad. Great Britain had a national bank of large capital,

in whose hands was concentrated the controlling monetary and financial

power of the nation--an institution wielding almost kingly power, and

exerting vast influence upon all the operations of trade and upon the

policy of the Government itself. Great Britain had an enormous public

debt, and it had become a part of her public policy to regard this

as a "public blessing." Great Britain had also a restrictive policy,

which placed fetters and burdens on trade and trammeled the productive

industry of the mass of the nation. By her combined system of policy the

landlords and other property holders were protected and enriched by the

enormous taxes which were levied upon the labor of the country for their

advantage. Imitating this foreign policy, the first step in establishing

the new system in the United States was the creation of a national bank.

Not foreseeing the dangerous power and countless evils which such an

institution might entail on the country, nor perceiving the connection

which it was designed to form between the bank and the other branches of

the miscalled "American system," but feeling the embarrassments of the

Treasury and of the business of the country consequent upon the war,

some of our statesmen who had held different and sounder views were

induced to yield their scruples and, indeed, settled convictions of its

unconstitutionality, and to give it their sanction as an expedient which

they vainly hoped might produce relief. It was a most unfortunate error,

as the subsequent history and final catastrophe of that dangerous and

corrupt institution have abundantly proved. The bank, with its numerous

branches ramified into the States, soon brought many of the active

political and commercial men in different sections of the country into

the relation of debtors to it and dependents upon it for pecuniary

favors, thus diffusing throughout the mass of society a great number of

individuals of power and influence to give tone to public opinion and

to act in concert in cases of emergency. The corrupt power of such a

political engine is no longer a matter of speculation, having been

displayed in numerous instances, but most signally in the political

struggles of 1832, 1833, and 1834 in opposition to the public will

represented by a fearless and patriotic President.

But the bank was but one branch of the new system. A public debt of more

than $120,000,000 existed, and it is not to be disguised that many of

the authors of the new system did not regard its speedy payment as

essential to the public prosperity, but looked upon its continuance as

no national evil. Whilst the debt existed it furnished aliment to the

national bank and rendered increased taxation necessary to the amount of

the interest, exceeding $7,000,000 annually.

This operated in harmony with the next branch of the new system, which

was a high protective tariff. This was to afford bounties to favored

classes and particular pursuits at the expense of all others. A

proposition to tax the whole people for the purpose of enriching a few

was too monstrous to be openly made. The scheme was therefore veiled

under the plausible but delusive pretext of a measure to protect "home

industry," and many of our people were for a time led to believe that a

tax which in the main fell upon labor was for the benefit of the laborer

who paid it. This branch of the system involved a partnership between

the Government and the favored classes, the former receiving the

proceeds of the tax imposed on articles imported and the latter the

increased price of similar articles produced at home, caused by such

tax. It is obvious that the portion to be received by the favored

classes would, as a general rule, be increased in proportion to the

increase of the rates of tax imposed and diminished as those rates were

reduced to the revenue standard required by the wants of the Government.

The rates required to produce a sufficient revenue for the ordinary

expenditures of Government for necessary purposes were not likely to

give to the private partners in this scheme profits sufficient to

satisfy their cupidity, and hence a variety of expedients and pretexts

were resorted to for the purpose of enlarging the expenditures and

thereby creating a necessity for keeping up a high protective tariff.

The effect of this policy was to interpose artificial restrictions upon

the natural course of the business and trade of the country, and to

advance the interests of large capitalists and monopolists at the

expense of the great mass of the people, who were taxed to increase

their wealth.

Another branch of this system was a comprehensive scheme of internal

improvements, capable of indefinite enlargement and sufficient to

swallow up as many millions annually as could be exacted from the

foreign commerce of the country. This was a convenient and necessary

adjunct of the protective tariff. It was to be the great absorbent of

any surplus which might at any time accumulate in the Treasury and of

the taxes levied on the people, not for necessary revenue purposes, but

for the avowed object of affording protection to the favored classes.

Auxiliary to the same end, if it was not an essential part of the system

itself, was the scheme, which at a later period obtained, for distributing

the proceeds of the sales of the public lands among the States. Other

expedients were devised to take money out of the Treasury and prevent

its coming in from any other source than the protective tariff. The

authors and supporters of the system were the advocates of the largest

expenditures, whether for necessary or useful purposes or not, because

the larger the expenditures the greater was the pretext for high taxes

in the form of protective duties.

These several measures were sustained by popular names and plausible

arguments, by which thousands were deluded. The bank was represented to

be an indispensable fiscal agent for the Government; was to equalize

exchanges and to regulate and furnish a sound currency, always and

everywhere of uniform value. The protective tariff was to give

employment to "American labor" at advanced prices; was to protect

"home industry" and furnish a steady market for the farmer. Internal

improvements were to bring trade into every neighborhood and enhance the

value of every man's property. The distribution of the land money was to

enrich the States, finish their public works, plant schools throughout

their borders, and relieve them from taxation. But the fact that for

every dollar taken out of the Treasury for these objects a much larger

sum was transferred from the pockets of the people to the favored

classes was carefully concealed, as was also the tendency, if not the

ultimate design, of the system to build up an aristocracy of wealth, to

control the masses of society, and monopolize the political power of the

country.

The several branches of this system were so intimately blended

together that in their operation each sustained and strengthened the

others. Their joint operation was to add new burthens of taxation and to

encourage a largely increased and wasteful expenditure of public money.

It was the interest of the bank that the revenue collected and the

disbursements made by the Government should be large, because, being the

depository of the public money, the larger the amount the greater would

be the bank profits by its use. It was the interest of the favored

classes, who were enriched by the protective tariff, to have the rates

of that protection as high as possible, for the higher those rates the

greater would be their advantage. It was the interest of the people

of all those sections and localities who expected to be benefited by

expenditures for internal improvements that the amount collected should

be as large as possible, to the end that the sum disbursed might also be

the larger. The States, being the beneficiaries in the distribution of

the land money, had an interest in having the rates of tax imposed by

the protective tariff large enough to yield a sufficient revenue from

that source to meet the wants of the Government without disturbing

or taking from them the land fund; so that each of the branches

constituting the system had a common interest in swelling the public

expenditures. They had a direct interest in maintaining the public debt

unpaid and increasing its amount, because this would produce an annual

increased drain upon the Treasury to the amount of the interest and

render augmented taxes necessary. The operation and necessary effect of

the whole system were to encourage large and extravagant expenditures,

and thereby to increase the public patronage, and maintain a rich and

splendid government at the expense of a taxed and impoverished people.

It is manifest that this scheme of enlarged taxation and expenditures,

had it continued to prevail, must soon have converted the Government of

the Union, intended by its framers to be a plain, cheap, and simple

confederation of States, united together for common protection and

charged with a few specific duties, relating chiefly to our foreign

affairs, into a consolidated empire, depriving the States of their

reserved rights and the people of their just power and control in the

administration of their Government. In this manner the whole form and

character of the Government would be changed, not by an amendment of the

Constitution, but by resorting to an unwarrantable and unauthorized

construction of that instrument.

The indirect mode of levying the taxes by a duty on imports prevents

the mass of the people from readily perceiving the amount they pay, and

has enabled the few who are thus enriched, and who seek to wield the

political power of the country, to deceive and delude them. Were the

taxes collected by a direct levy upon the people, as is the case in the

States, this could not occur.

The whole system was resisted from its inception by many of our

ablest statesmen, some of whom doubted its constitutionality and its

expediency, while others believed it was in all its branches a flagrant

and dangerous infraction of the Constitution.

That a national bank, a protective tariff--levied not to raise the

revenue needed, but for protection merely--internal improvements, and

the distribution of the proceeds of the sale of the public lands are

measures without the warrant of the Constitution would, upon the

maturest consideration, seem to be clear. It is remarkable that no one

of these measures, involving such momentous consequences, is authorized

by any express grant of power in the Constitution. No one of them is

"incident to, as being necessary and proper for the execution of, the

specific powers" granted by the Constitution. The authority under which

it has been attempted to justify each of them is derived from inferences

and constructions of the Constitution which its letter and its whole

object and design do not warrant. Is it to be conceived that such

immense powers would have been left by the framers of the Constitution

to mere inferences and doubtful constructions? Had it been intended to

confer them on the Federal Government, it is but reasonable to conclude

that it would have been done by plain and unequivocal grants. This was

not done; but the whole structure of which the "American system"

consisted was reared on no other or better foundation than forced

implications and inferences of power, which its authors assumed might

be deduced by construction from the Constitution.

But it has been urged that the national bank, which constituted so

essential a branch of this combined system of measures, was not a new

measure, and that its constitutionality had been previously sanctioned,

because a bank had been chartered in 1791 and had received the official

signature of President Washington. A few facts will show the just weight

to which this precedent should be entitled as bearing upon the question

of constitutionality.

Great division of opinion upon the subject existed in Congress. It is

well known that President Washington entertained serious doubts both as

to the constitutionality and expediency of the measure, and while the

bill was before him for his official approval or disapproval so great

were these doubts that he required "the opinion in writing" of the

members of his Cabinet to aid him in arriving at a decision. His Cabinet

gave their opinions and were divided upon the subject, _General

Hamilton_ being in favor of and _Mr. Jefferson_ and _Mr. Randolph_ being

opposed to the constitutionality and expediency of the bank. It is well

known also that President Washington retained the bill from Monday, the

14th, when it was presented to him, until Friday, the 25th of February,

being the last moment permitted him by the Constitution to deliberate,

when he finally yielded to it his reluctant assent and gave it his

signature. It is certain that as late as the 23d of February, being the

ninth day after the bill was presented to him, he had arrived at no

satisfactory conclusion, for on that day he addressed a note to General

Hamilton in which he informs him that "this bill was presented to me by

the joint committee of Congress at 12 o'clock on Monday, the 14th

instant," and he requested his opinion "to what precise period, by legal

interpretation of the Constitution, can the President retain it in his

possession before it becomes a law by the lapse of ten days." If the

proper construction was that the day on which the bill was presented to

the President and the day on which his action was had upon it were both

to be counted inclusive, then the time allowed him within which it would

be competent for him to return it to the House in which it originated

with his objections would expire on Thursday, the 24th of February.

General Hamilton on the same day returned an answer, in which he states:

I give it as my opinion that you have ten days exclusive of that on

which the bill was delivered to you and Sundays; hence, in the present

case if it is returned on Friday it will be in time.

By this construction, which the President adopted, he gained another day

for deliberation, and it was not until the 25th of February that he

signed the bill, thus affording conclusive proof that he had at last

obtained his own consent to sign it not without great and almost

insuperable difficulty. Additional light has been recently shed upon the

serious doubts which he had on the subject, amounting at one time to a

conviction that it was his duty to withhold his approval from the bill.

This is found among the manuscript papers of _Mr. Madison_, authorized

to be purchased for the use of the Government by an act of the last

session of Congress, and now for the first time accessible to the

public. From these papers it appears that President Washington, while he

yet held the bank bill in his hands, actually requested _Mr. Madison_,

at that time a member of the House of Representatives, to prepare the

draft of a veto message for him. _Mr. Madison_, at his request, did

prepare the draft of such a message, and sent it to him on the 21st of

February, 1791. A copy of this original draft, in Mr. Madison's own

handwriting, was carefully preserved by him, and is among the papers

lately purchased by Congress. It is preceded by a note, written on the

same sheet, which is also in Mr. Madison's handwriting, and is as

follows:

_February 21, 1791_.--Copy of a paper made out and sent to the

President, _at his request,_ to be ready in case his judgment should

finally decide against the bill for incorporating a national bank,

the bill being then before him.

Among the objections assigned in this paper to the bill, and which were

submitted for the consideration of the President, are the following:

I object to the bill, because it is an essential principle of the

Government that powers not delegated by the Constitution can not be

rightfully exercised; because the power proposed by the bill to be

exercised is not expressly delegated, and because I can not satisfy

myself that it results from any express power by fair and safe rules

of interpretation.

The weight of the precedent of the bank of 1791 and the sanction of

the great name of Washington, which has been so often invoked in its

support, are greatly weakened by the development of these facts.

The experiment of that bank satisfied the country that it ought not to

be continued, and at the end of twenty years Congress refused to

recharter it. It would have been fortunate for the country, and saved

thousands from bankruptcy and ruin, had our public men of 1816 resisted

the temporary pressure of the times upon our financial and pecuniary

interests and refused to charter the second bank. Of this the country

became abundantly satisfied, and at the close of its twenty years'

duration, as in the case of the first bank, it also ceased to exist.

Under the repeated blows of _President Jackson_ it reeled and fell, and

a subsequent attempt to charter a similar institution was arrested by

the _veto_ of President Tyler.

_Mr. Madison_, in yielding his signature to the charter of 1816, did so

upon the ground of the respect due to precedents; and, as he

subsequently declared--

The Bank of the United States, though on the original question held

to be unconstitutional, received the Executive signature.

It is probable that neither the bank of 1791 nor that of 1816 would have

been chartered but for the embarrassments of the Government in its

finances, the derangement of the currency, and the pecuniary pressure

which existed, the first the consequence of the War of the Revolution

and the second the consequence of the War of 1812. Both were resorted to

in the delusive hope that they would restore public credit and afford

relief to the Government and to the business of the country.

Those of our public men who opposed the whole "American system"

at its commencement and throughout its progress foresaw and predicted

that it was fraught with incalculable mischiefs and must result in

serious injury to the best interests of the country. For a series of

years their wise counsels were unheeded, and the system was established.

It was soon apparent that its practical operation was unequal and unjust

upon different portions of the country and upon the people engaged

in different pursuits. All were equally entitled to the favor and

protection of the Government. It fostered and elevated the money power

and enriched the favored few by taxing labor, and at the expense of the

many. Its effect was to "make the rich richer and the poor poorer." Its

tendency was to create distinctions in society based on wealth and to

give to the favored classes undue control and sway in our Government. It

was an organized money power, which resisted the popular will and sought

to shape and control the public policy.

Under the pernicious workings of this combined system of measures the

country witnessed alternate seasons of temporary apparent prosperity,

of sudden and disastrous commercial revulsions, of unprecedented

fluctuation of prices and depression of the great interests of

agriculture, navigation, and commerce, of general pecuniary suffering,

and of final bankruptcy of thousands. After a severe struggle of more

than a quarter of a century, the system was overthrown.

The bank has been succeeded by a practical system of finance, conducted

and controlled solely by the Government. The constitutional currency has

been restored, the public credit maintained unimpaired even in a period

of a foreign war, and the whole country has become satisfied that banks,

national or State, are not necessary as fiscal agents of the Government.

Revenue duties have taken the place of the protective tariff. The

distribution of the money derived from the sale of the public lands has

been abandoned and the corrupting system of internal improvements, it is

hoped, has been effectually checked.

It is not doubted that if this whole train of measures, designed to take

wealth from the many and bestow it upon the few, were to prevail the

effect would be to change the entire character of the Government. One

only danger remains. It is the seductions of that branch of the system

which consists in internal improvements, holding out, as it does,

inducements to the people of particular sections and localities to

embark the Government in them without stopping to calculate the

inevitable consequences. This branch of the system is so intimately

combined and linked with the others that as surely as an effect is

produced by an adequate cause, if it be resuscitated and revived and

firmly established it requires no sagacity to foresee that it will

necessarily and speedily draw after it the reestablishment of a national

bank, the revival of a protective tariff, the distribution of the land

money, and not only the postponement to the distant future of the

payment of the present national debt, but its annual increase.

I entertain the solemn conviction that if the internal-improvement

branch of the "American system" be not firmly resisted at this time the

whole series of measures composing it will be speedily reestablished and

the country be thrown back from its present high state of prosperity,

which the existing policy has produced, and be destined again to witness

all the evils, commercial revulsions, depression of prices, and

pecuniary embarrassments through which we have passed during the last

twenty-five years.

To guard against consequences so ruinous is an object of high national

importance, involving, in my judgment, the continued prosperity of the

country.

I have felt it to be an imperative obligation to withhold my

constitutional sanction from two bills which had passed the two Houses

of Congress, involving the principle of the internal-improvement branch

of the "American system" and conflicting in their provisions with the

views here expressed.

This power, conferred upon the President by the Constitution, I have on

three occasions during my administration of the executive department of

the Government deemed it my duty to exercise, and on this last occasion

of making to Congress an annual communication "of the state of the

Union" it is not deemed inappropriate to review the principles and

considerations which have governed my action. I deem this the more

necessary because, after the lapse of nearly sixty years since the

adoption of the Constitution, the propriety of the exercise of this

undoubted constitutional power by the President has for the first time

been drawn seriously in question by a portion of my fellow-citizens.

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