THIRD ANNUAL MESSAGE.

WASHINGTON, _December, 1843_.

_To the Senate and House of Representatives of the United States_:

If any people ever had cause to render up thanks to the Supreme Being

for parental care and protection extended to them in all the trials

and difficulties to which they have been from time to time exposed, we

certainly are that people. From the first settlement of our forefathers

on this continent, through the dangers attendant upon the occupation

of a savage wilderness, through a long period of colonial dependence,

through the War of the Revolution, in the wisdom which led to the

adoption of the existing forms of republican government, in the hazards

incident to a war subsequently waged with one of the most powerful

nations of the earth, in the increase of our population, in the spread

of the arts and sciences, and in the strength and durability conferred

on political institutions emanating from the people and sustained by

their will, the superintendence of an overruling Providence has been

plainly visible. As preparatory, therefore, to entering once more upon

the high duties of legislation, it becomes us humbly to acknowledge

our dependence upon Him as our guide and protector and to implore a

continuance of His parental watchfulness over our beloved country. We

have new cause for the expression of our gratitude in the preservation

of the health of our fellow-citizens, with some partial and local

exceptions, during the past season, for the abundance with which the

earth has yielded up its fruits to the labors of the husbandman, for the

renewed activity which has been imparted to commerce, for the revival of

trade in all its departments, for the increased rewards attendant on

the exercise of the mechanic arts, for the continued growth of our

population and the rapidly reviving prosperity of the whole country.

I shall be permitted to exchange congratulations with you, gentlemen of

the two Houses of Congress, on these auspicious circumstances, and to

assure you in advance of my ready disposition to concur with you in the

adoption of all such measures as shall be calculated to increase the

happiness of our constituents and to advance the glory of our common

country.

Since the last adjournment of Congress the Executive has relaxed no

effort to render indestructible the relations of amity which so happily

exist between the United States and other countries. The treaty lately

concluded with Great Britain has tended greatly to increase the good

understanding which a reciprocity of interests is calculated to

encourage, and it is most ardently to be hoped that nothing may

transpire to interrupt the relations of amity which it is so obviously

the policy of both nations to cultivate. A question of much importance

still remains to be adjusted between them. The territorial limits of the

two countries in relation to what is commonly known as the Oregon

Territory still remain in dispute. The United States would be at all

times indisposed to aggrandize itself at the expense of any other

nation; but while they would be restrained by principles of honor, which

should govern the conduct of nations as well as that of individuals,

from setting up a demand for territory which does not belong to them,

they would as unwillingly consent to a surrender of their rights. After

the most rigid and, as far as practicable, unbiased examination of the

subject, the United States have always contended that their rights

appertain to the entire region of country lying on the Pacific and

embraced within 42° and 54° 40' of north latitude. This claim being

controverted by Great Britain, those who have preceded the present

Executive--actuated, no doubt, by an earnest desire to adjust the matter

upon terms mutually satisfactory to both countries--have caused to be

submitted to the British Government propositions for settlement and

final adjustment, which, however, have not proved heretofore acceptable

to it. Our minister at London has, under instructions, again brought the

subject to the consideration of that Government, and while nothing will

be done to compromit the rights or honor of the United States, every

proper expedient will be resorted to in order to bring the negotiation

now in the progress of resumption to a speedy and happy termination. In

the meantime it is proper to remark that many of our citizens are either

already established in the Territory or are on their way thither for the

purpose of forming permanent settlements, while others are preparing

to follow; and in view of these facts I must repeat the recommendation

contained in previous messages for the establishment of military posts

at such places on the line of travel as will furnish security and

protection to our hardy adventurers against hostile tribes of Indians

inhabiting those extensive regions. Our laws should also follow them, so

modified as the circumstances of the case may seem to require. Under the

influence of our free system of government new republics are destined

to spring up at no distant day on the shores of the Pacific similar

in policy and in feeling to those existing on this side of the Rocky

Mountains, and giving a wider and more extensive spread to the

principles of civil and religious liberty.

I am happy to inform you that the cases which have from time to time

arisen of the detention of American vessels by British cruisers on the

coast of Africa under pretense of being engaged in the slave trade have

been placed in a fair train of adjustment. In the case of the _William

and Francis_ full satisfaction will be allowed. In the cases of the

_Tygris_ and _Seamew_ the British Government admits that satisfaction

is due. In the case of the _Jones_ the sum accruing from the sale

of that vessel and cargo will be paid to the owners, while I can not

but flatter myself that full indemnification will be allowed for all

damages sustained by the detention of the vessel; and in the case of the

_Douglas_ Her Majesty's Government has expressed its determination to

make indemnification. Strong hopes are therefore entertained that most,

if not all, of these cases will be speedily adjusted. No new cases have

arisen since the ratification of the treaty of Washington, and it is

confidently anticipated that the slave trade, under the operation of

the eighth article of that treaty, will be altogether suppressed.

The occasional interruption experienced by our fellow-citizens engaged

in the fisheries on the neighboring coast of Nova Scotia has not failed

to claim the attention of the Executive. Representations upon this

subject have been made, but as yet no definitive answer to those

representations has been received from the British Government.

Two other subjects of comparatively minor importance, but nevertheless

of too much consequence to be neglected, remain still to be adjusted

between the two countries. By the treaty between the United States and

Great Britain of July, 1815, it is provided that no higher duties shall

be levied in either country on articles imported from the other than on

the same articles imported from any other place. In 1836 rough rice by

act of Parliament was admitted from the coast of Africa into Great

Britain on the payment of a duty of 1 penny a quarter, while the same

article from all other countries, including the United States, was

subjected to the payment of a duty of 20 shillings a quarter. Our

minister at London has from time to time brought this subject to the

attention of the British Government, but so far without success. He is

instructed to renew his representations upon it.

Some years since a claim was preferred against the British Government on

the part of certain American merchants for the return of export duties

paid by them on shipments of woolen goods to the United States after the

duty on similar articles exported to other countries had been repealed,

and consequently in contravention of the commercial convention between

the two nations securing to us equality in such cases. The principle on

which the claim rests has long since been virtually admitted by Great

Britain, but obstacles to a settlement have from time to time been

interposed, so that a large portion of the amount claimed has not yet

been refunded. Our minister is now engaged in the prosecution of the

claim, and I can not but persuade myself that the British Government

will no longer delay its adjustment.

I am happy to be able to say that nothing has occurred to disturb in any

degree the relations of amity which exist between the United States and

France, Austria, and Russia, as well as with the other powers of Europe,

since the adjournment of Congress. Spain has been agitated with internal

convulsions for many years, from the effects of which, it is hoped, she

is destined speedily to recover, when, under a more liberal system of

commercial policy on her part, our trade with her may again fill its old

and, so far as her continental possessions are concerned, its almost

forsaken channels, thereby adding to the mutual prosperity of the two

countries.

The Germanic Association of Customs and Commerce, which since its

establishment in 1833 has been steadily growing in power and importance,

and consists at this time of more than twenty German States, and

embraces a population of 27,000,000 people united for all the purposes

of commercial intercourse with each other and with foreign states,

offers to the latter the most valuable exchanges on principles more

liberal than are offered in the fiscal system of any other European

power. From its origin the importance of the German union has never been

lost sight of by the United States. The industry, morality, and other

valuable qualities of the German nation have always been well known and

appreciated. On this subject I invite the attention of Congress to the

report of the Secretary of State, from which it will be seen that while

our cotton is admitted free of duty and the duty on rice has been much

reduced (which has already led to a greatly increased consumption),

a strong disposition has been recently evinced by that great body to

reduce, upon certain conditions, their present duty upon tobacco. This

being the first intimation of a concession on this interesting subject

ever made by any European power, I can not but regard it as well

calculated to remove the only impediment which has so far existed to

the most liberal commercial intercourse between us and them. In this

view our minister at Berlin, who has heretofore industriously pursued

the subject, has been instructed to enter upon the negotiation of a

commercial treaty, which, while it will open new advantages to the

agricultural interests of the United States and a more free and expanded

field for commercial operations, will affect injuriously no existing

interest of the Union. Should the negotiation be crowned with success,

its results will be communicated to both Houses of Congress.

I communicate herewith certain dispatches received from our minister at

Mexico, and also a correspondence which has recently occurred between

the envoy from that Republic and the Secretary of State. It must but be

regarded as not a little extraordinary that the Government of Mexico,

in anticipation of a public discussion (which it has been pleased to

infer from newspaper publications as likely to take place in Congress,

relating to the annexation of Texas to the United States), should have

so far anticipated the result of such discussion as to have announced

its determination to visit any such anticipated decision by a formal

declaration of war against the United States. If designed to prevent

Congress from introducing that question as a fit subject for its calm

deliberation and final judgment, the Executive has no reason to doubt

that it will entirely fail of its object. The representatives of a brave

and patriotic people will suffer no apprehension of future consequences

to embarrass them in the course of their proposed deliberations, nor

will the executive department of the Government fail for any such cause

to discharge its whole duty to the country.

The war which has existed for so long a time between Mexico and Texas

has since the battle of San Jacinto consisted for the most part of

predatory incursions, which, while they have been attended with much of

suffering to individuals and have kept the borders of the two countries

in a state of constant alarm, have failed to approach to any definitive

result. Mexico has fitted out no formidable armament by land or by sea

for the subjugation of Texas. Eight years have now elapsed since Texas

declared her independence of Mexico, and during that time she has been

recognized as a sovereign power by several of the principal civilized

states. Mexico, nevertheless, perseveres in her plans of reconquest, and

refuses to recognize her independence. The predatory incursions to which

I have alluded have been attended in one instance with the breaking up

of the courts of justice, by the seizing upon the persons of the judges,

jury, and officers of the court and dragging them along with unarmed,

and therefore noncombatant, citizens into a cruel and oppressive

bondage, thus leaving crime to go unpunished and immorality to pass

unreproved. A border warfare is evermore to be deprecated, and over such

a war as has existed for so many years between these two States humanity

has had great cause to lament. Nor is such a condition of things to be

deplored only because of the individual suffering attendant upon it. The

effects are far more extensive. The Creator of the Universe has given

man the earth for his resting place and its fruits for his subsistence.

Whatever, therefore, shall make the first or any part of it a scene of

desolation affects injuriously his heritage and may be regarded as a

general calamity. Wars may sometimes be necessary, but all nations have

a common interest in bringing them speedily to a close. The United

States have an immediate interest in seeing an end put to the state of

hostilities existing between Mexico and Texas. They are our neighbors,

of the same continent, with whom we are not only desirous of cultivating

the relations of amity, but of the most extended commercial intercourse,

and to practice all the rites of a neighborhood hospitality. Our own

interests are involved in the matter, since, however neutral may be our

course of policy, we can not hope to escape the effects of a spirit of

jealousy on the part of both of the powers. Nor can this Government be

indifferent to the fact that a warfare such as is waged between those

two nations is calculated to weaken both powers and finally to render

them--and especially the weaker of the two--the subjects of interference

on the part of stronger and more powerful nations, who, intent only on

advancing their own peculiar views, may sooner or later attempt to bring

about a compliance with terms as the condition of their interposition

alike derogatory to the nation granting them and detrimental to the

interests of the United States. We could not be expected quietly to

permit any such interference to our disadvantage. Considering that Texas

is separated from the United States by a mere geographical line; that

her territory, in the opinion of many, down to a late period formed a

portion of the territory of the United States; that it is homogeneous

in its population and pursuits with the adjoining States, makes

contributions to the commerce of the world in the same articles with

them, and that most of her inhabitants have been citizens of the United

States, speak the same language, and live under similar political

institutions with ourselves, this Government is bound by every

consideration of interest as well as of sympathy to see that she shall

be left free to act, especially in regard to her domestic affairs,

unawed by force and unrestrained by the policy or views of other

countries. In full view of all these considerations, the Executive has

not hesitated to express to the Government of Mexico how deeply it

deprecated a continuance of the war and how anxiously it desired to

witness its termination. I can not but think that it becomes the United

States, as the oldest of the American Republics, to hold a language to

Mexico upon this subject of an unambiguous character. It is time that

this war had ceased. There must be a limit to all wars, and if the

parent state after an eight years' struggle has failed to reduce to

submission a portion of its subjects standing out in revolt against it,

and who have not only proclaimed themselves to be independent, but have

been recognized as such by other powers, she ought not to expect that

other nations will quietly look on, to their obvious injury, upon a

protraction of hostilities. These United States threw off their colonial

dependence and established independent governments, and Great Britain,

after having wasted her energies in the attempt to subdue them for a

less period than Mexico has attempted to subjugate Texas, had the wisdom

and justice to acknowledge their independence, thereby recognizing the

obligation which rested on her as one of the family of nations. An

example thus set by one of the proudest as well as most powerful nations

of the earth it could in no way disparage Mexico to imitate. While,

therefore, the Executive would deplore any collision with Mexico or

any disturbance of the friendly relations which exist between the two

countries, it can not permit that Government to control its policy,

whatever it may be, toward Texas, but will treat her--as by the

recognition of her independence the United States have long since

declared they would do--as entirely independent of Mexico. The high

obligations of public duty may enforce from the constituted authorities

of the United States a policy which the course persevered in by Mexico

will have mainly contributed to produce, and the Executive in such a

contingency will with confidence throw itself upon the patriotism of

the people to sustain the Government in its course of action.

Measures of an unusual character have recently been adopted by the

Mexican Government, calculated in no small degree to affect the trade

of other nations with Mexico and to operate injuriously to the United

States. All foreigners, by a decree of the 23d day of September, and

after six months from the day of its promulgation, are forbidden to

carry on the business of selling by retail any goods within the confines

of Mexico. Against this decree our minister has not failed to

remonstrate.

The trade heretofore carried on by our citizens with Santa Fe,

in which much capital was already invested and which was becoming of

daily increasing importance, has suddenly been arrested by a decree of

virtual prohibition on the part of the Mexican Government. Whatever may

be the right of Mexico to prohibit any particular course of trade to the

citizens or subjects of foreign powers, this late procedure, to say the

least of it, wears a harsh and unfriendly aspect.

The installments on the claims recently settled by the convention with

Mexico have been punctually paid as they have fallen due, and our

minister is engaged in urging the establishment of a new commission in

pursuance of the convention for the settlement of unadjusted claims.

With the other American States our relations of amity and good will have

remained uninterrupted. Our minister near the Republic of New Granada

has succeeded in effecting an adjustment of the claim upon that

Government for the schooner _By Chance_, which had been pending for many

years. The claim for the brig _Morris_, which had its origin during the

existence of the Republic of Colombia, and indemnification for which

since the dissolution of that Republic has devolved upon its several

members, will be urged with renewed zeal.

I have much pleasure in saying that the Government of Brazil has

adjusted the claim upon that Government in the case of the schooner

_John S. Bryan_, and that sanguine hopes are entertained that the same

spirit of justice will influence its councils in arriving at an early

decision upon the remaining claims, thereby removing all cause of

dissension between two powers whose interests are to some extent

interwoven with each other.

Our minister at Chili has succeeded in inducing a recognition by that

Government of the adjustment effected by his predecessor of the first

claim in the case of the _Macedonian_. The first installment has been

received by the claimants in the United States.

Notice of the exchange of ratifications of the treaty with Peru, which

will take place at Lima, has not yet reached this country, but is

shortly expected to be received, when the claims upon that Republic will

doubtless be liquidated and paid.

In consequence of a misunderstanding between this Government and that of

Buenos Ayres, occurring several years ago, this Government has remained

unrepresented at that Court, while a minister from it has been

constantly resident here. The causes of irritation have in a great

measure passed away, and it is in contemplation, in view of important

interests which have grown up in that country, at some early period

during the present session of Congress, with the concurrence of the

Senate, to restore diplomatic relations between the two countries.

Under the provisions of an act of Congress of the last session a

minister was dispatched from the United States to China in August of the

present year, who, from the latest accounts we have from him, was at

Suez, in Egypt, on the 25th of September last, on his route to China.

In regard to the Indian tribes residing within our jurisdictional

limits, the greatest vigilance of the Government has been exerted to

preserve them at peace among themselves and to inspire them with

feelings of confidence in the justice of this Government and to

cultivate friendship with the border inhabitants. This has happily

succeeded to a great extent, but it is a subject of regret that they

suffer themselves in some instances to be imposed upon by artful and

designing men, and this notwithstanding all efforts of the Government

to prevent it.

The receipts into the Treasury for the calendar year 1843, exclusive

of loans, were little more than $18,000,000, and the expenditures,

exclusive of the payments on the public debt, will have been about

$23,000,000. By the act of 1842 a new arrangement of the fiscal year was

made, so that it should commence on the 1st day of July in each year.

The accounts and estimates for the current fiscal year will show that

the loans and Treasury notes made and issued before the close of the

last Congress to meet the anticipated deficiency have not been entirely

adequate. Although on the 1st of October last there was a balance in the

Treasury, in consequence of the provisions thus made, of $3,914,082.77,

yet the appropriations already made by Congress will absorb that balance

and leave a probable deficiency of $2,000,000 at the close of the

present fiscal year. There are outstanding Treasury notes to about the

amount of $4,600,000, and should they be returned upon the Treasury

during the fiscal year they will require provision for their redemption.

I do not, however, regard this as probable, since they have obviously

entered into the currency of the country and will continue to form a

portion of it if the system now adopted be continued. The loan of 1841,

amounting to $5,672,976.88, falls due on the 1st day of January, 1845,

and must be provided for or postponed by a new loan; and unless the

resources of revenue should be materially increased by you there will be

a probable deficiency for the service of the fiscal year ending June 30,

1845, of upward of $4,000,000.

The delusion incident to an enormously excessive paper circulation,

which gave a fictitious value to everything and stimulated adventure and

speculation to an extravagant extent, has been happily succeeded by the

substitution of the precious metals and paper promptly redeemable in

specie; and thus false values have disappeared and a sounder condition

of things has been introduced. This transition, although intimately

connected with the prosperity of the country, has nevertheless been

attended with much embarrassment to the Government in its financial

concerns. So long as the foreign importers could receive payment for

their cargoes in a currency of greatly less value than that in Europe,

but fully available here in the purchase of our agricultural productions

(their profits being immeasurably augmented by the operation), the

shipments were large and the revenues of the Government became

superabundant. But the change in the character of the circulation from a

nominal and apparently real value in the first stage of its existence

to an obviously depreciated value in its second, so that it no longer

answered the purposes of exchange or barter, and its ultimate

substitution by a sound metallic and paper circulation combined, has

been attended by diminished importations and a consequent falling off

in the revenue. This has induced Congress, from 1837, to resort to the

expedient of issuing Treasury notes, and finally of funding them, in

order to supply deficiencies. I can not, however, withhold the remark

that it is in no way compatible with the dignity of the Government that

a public debt should be created in time of peace to meet the current

expenses of the Government, or that temporary expedients should be

resorted to an hour longer than it is possible to avoid them. The

Executive can do no more than apply the means which Congress places in

its hands for the support of Government, and, happily for the good of

the country and for the preservation of its liberties, it possesses

no power to levy exactions on the people or to force from them

contributions to the public revenue in any form. It can only recommend

such measures as may in its opinion be called for by the wants of the

public service to Congress, with whom alone rests the power to "lay and

collect taxes, duties, imposts, and excises." This duty has upon several

occasions heretofore been performed. The present condition of things

gives flattering promise that trade and commerce are rapidly reviving,

and, fortunately for the country, the sources of revenue have only to

be opened in order to prove abundant.

While we can anticipate no considerable increase in the proceeds of the

sales of the public lands, for reasons perfectly obvious to all, for

several years to come, yet the public lands can not otherwise than be

regarded as the foundation of the public credit. With so large a body

of the most fertile lands in the world under the control and at the

disposal of this Government, no one can reasonably doubt the entire

ability to meet its engagements under every emergency. In seasons of

trial and difficulty similar to those through which we are passing the

capitalist makes his investments in the Government stocks with the most

assured confidence of ultimate reimbursement; and whatever may be said

of a period of great financial prosperity, such as existed for some

years after 1833, I should regard it as suicidal in a season of

financial embarrassment either to alienate the lands themselves or the

proceeds arising from their sales. The first and paramount duty of those

to whom may be intrusted the administration of public affairs is to

guard the public credit. In reestablishing the credit of this central

Government the readiest and most obvious mode is taken to restore

the credit of the States. The extremities can only be made sound by

producing a healthy action in the central Government, and the history of

the present day fully establishes the fact that an increase in the value

of the stocks of this Government will in a great majority of instances

be attended by an increase in the value of the stocks of the States. It

should therefore be a matter of general congratulation that amidst all

the embarrassments arising from surrounding circumstances the credit

of the Government should have been so fully restored that it has been

enabled to effect a loan of $7,000,000 to redeem that amount of Treasury

notes on terms more favorable than any that have been offered for many

years. And the 6 per cent stock which was created in 1842 has advanced

in the hands of the holders nearly 20 per cent above its par value. The

confidence of the people in the integrity of their Government has thus

been signally manifested. These opinions relative to the public lands

do not in any manner conflict with the observance of the most liberal

policy toward those of our fellow-citizens who press forward into the

wilderness and are the pioneers in the work of its reclamation. In

securing to all such their rights of preemption the Government performs

but an act of retributive justice for sufferings encountered and

hardships endured, and finds ample remuneration in the comforts which

its policy insures and the happiness which it imparts.

Should a revision of the tariff with a view to revenue become necessary

in the estimation of Congress, I doubt not you will approach the subject

with a just and enlightened regard to the interests of the whole Union.

The principles and views which I have heretofore had occasion to submit

remain unchanged. It can, however, never be too often repeated that the

prominent interest of every important pursuit of life requires for

success permanency and stability in legislation. These can only be

attained by adopting as the basis of action moderation in all things,

which is as indispensably necessary to secure the harmonious action of

the political as of the animal system. In our political organization no

one section of the country should desire to have its supposed interests

advanced at the sacrifice of all others, but union, being the great

interest, equally precious to all, should be fostered and sustained by

mutual concessions and the cultivation of that spirit of compromise from

which the Constitution itself proceeded.

You will be informed by the report from the Treasury Department of the

measures taken under the act of the last session authorizing the reissue

of Treasury notes in lieu of those then outstanding. The system adopted

in pursuance of existing laws seems well calculated to save the country

a large amount of interest, while it affords conveniences and obviates

dangers and expense in the transmission of funds to disbursing agents.

I refer you also to that report for the means proposed by the Secretary

to increase the revenue, and particularly to that portion of it which

relates to the subject of the warehousing system, which I earnestly

urged upon Congress at its last session and as to the importance of

which my opinion has undergone no change.

In view of the disordered condition of the currency at the time and

the high rates of exchange between different parts of the country,

I felt it to be incumbent on me to present to the consideration of

your predecessors a proposition conflicting in no degree with the

Constitution or with the rights of the States and having the sanction

(not in detail, but in principle) of some of the eminent men who have

preceded me in the Executive office. That proposition contemplated the

issuing of Treasury notes of denominations of not less than $5 nor more

than $100, to be employed in the payment of the obligations of the

Government in lieu of gold and silver at the option of the public

creditor, and to an amount not exceeding $15,000,000. It was proposed

to make them receivable everywhere and to establish at various points

depositories of gold and silver to be held in trust for the redemption

of such notes, so as to insure their convertibility into specie. No

doubt was entertained that such notes would have maintained a par value

with gold and silver, thus furnishing a paper currency of equal value

over the Union, thereby meeting the just expectations of the people and

fulfilling the duties of a parental government. Whether the depositories

should be permitted to sell or purchase bills under very limited

restrictions, together with all its other details, was submitted to

the wisdom of Congress and was regarded as of secondary importance.

I thought then and think now that such an arrangement would have been

attended with the happiest results. The whole matter of the currency

would have been placed where by the Constitution it was designed to be

placed--under the immediate supervision and control of Congress.

The action of the Government would have been independent of all

corporations, and the same eye which rests unceasingly on the specie

currency and guards it against adulteration would also have rested on

the paper currency, to control and regulate its issues and protect it

against depreciation. The same reasons which would forbid Congress from

parting with the power over the coinage would seem to operate with

nearly equal force in regard to any substitution for the precious metals

in the form of a circulating medium. Paper when substituted for specie

constitutes a standard of value by which the operations of society are

regulated, and whatsoever causes its depreciation affects society to an

extent nearly, if not quite, equal to the adulteration of the coin. Nor

can I withhold the remark that its advantages contrasted with a bank

of the United States, apart from the fact that a bank was esteemed as

obnoxious to the public sentiment as well on the score of expediency

as of constitutionalty, appeared to me to be striking and obvious.

The relief which a bank would afford by an issue of $15,000,000 of its

notes, judging from the experience of the late United States Bank, would

not have occurred in less than fifteen years, whereas under the proposed

arrangement the relief arising from the issue of $15,000,000 of Treasury

notes would have been consummated in one year, thus furnishing in

one-fifteenth part of the time in which a bank could have accomplished

it a paper medium of exchange equal in amount to the real wants of the

country at par value with gold and silver. The saving to the Government

would have been equal to all the interest which it has had to pay on

Treasury notes of previous as well as subsequent issues, thereby

relieving the Government and at the same time affording relief to the

people. Under all the responsibilities attached to the station which

I occupy, and in redemption of a pledge given to the last Congress

at the close of its first session, I submitted the suggestion to its

consideration at two consecutive sessions. The recommendation, however,

met with no favor at its hands. While I am free to admit that the

necessities of the times have since become greatly ameliorated and that

there is good reason to hope that the country is safely and rapidly

emerging from the difficulties and embarrassments which everywhere

surrounded it in 1841, yet I can not but think that its restoration to

a sound and healthy condition would be greatly expedited by a resort

to the expedient in a modified form.

The operations of the Treasury now rest upon the act of 1789 and the

resolution of 1816, and those laws have been so administered as to

produce as great a quantum of good to the country as their provisions

are capable of yielding. If there had been any distinct expression of

opinion going to show that public sentiment is averse to the plan,

either as heretofore recommended to Congress or in a modified form,

while my own opinion in regard to it would remain unchanged I should be

very far from again presenting it to your consideration. The Government

has originated with the States and the people, for their own benefit and

advantage, and it would be subversive of the foundation principles of

the political edifice which they have reared to persevere in a measure

which in their mature judgments they had either repudiated or condemned.

The will of our constituents clearly expressed should be regarded as the

light to guide our footsteps, the true difference between a monarchical

or aristocratical government and a republic being that in the first the

will of the few prevails over the will of the many, while in the last

the will of the many should be alone consulted.

The report of the Secretary of War will bring you acquainted with the

condition of that important branch of the public service. The Army may

be regarded, in consequence of the small number of the rank and file in

each company and regiment, as little more than a nucleus around which

to rally the military force of the country in case of war, and yet

its services in preserving the peace of the frontiers are of a most

important nature. In all cases of emergency the reliance of the country

is properly placed in the militia of the several States, and it may well

deserve the consideration of Congress whether a new and more perfect

organization might not be introduced, looking mainly to the volunteer

companies of the Union for the present and of easy application to the

great body of the militia in time of war.

The expenditures of the War Department have been considerably reduced in

the last two years. Contingencies, however, may arise which would call

for the filling up of the regiments with a full complement of men and

make it very desirable to remount the corps of dragoons, which by an act

of the last Congress was directed to be dissolved.

I refer you to the accompanying report of the Secretary for information

in relation to the Navy of the United States. While every effort has

been and will continue to be made to retrench all superfluities and lop

off all excrescences which from time to time may have grown up, yet it

has not been regarded as wise or prudent to recommend any material

change in the annual appropriations. The interests which are involved

are of too important a character to lead to the recommendation of any

other than a liberal policy. Adequate appropriations ought to be made to

enable the Executive to fit out all the ships that are now in a course

of building or that require repairs for active service in the shortest

possible time should any emergency arise which may require it. An

efficient navy, while it is the cheapest means of public defense,

enlists in its support the feelings of pride and confidence which

brilliant deeds and heroic valor have heretofore served to strengthen

and confirm.

I refer you particularly to that part of the Secretary's report which

has reference to recent experiments in the application of steam and in

the construction of our war steamers, made under the superintendence

of distinguished officers of the Navy. In addition to other manifest

improvements in the construction of the steam engine and application of

the motive power which has rendered them more appropriate to the uses of

ships of war, one of those officers has brought into use a power which

makes the steamship most formidable either for attack or defense. I can

not too strongly recommend this subject to your consideration and do not

hesitate to express my entire conviction of its great importance.

I call your particular attention also to that portion of the Secretary's

report which has reference to the act of the late session of Congress

which prohibited the transfer of any balance of appropriation from other

heads of appropriation to that for building, equipment, and repair.

The repeal of that prohibition will enable the Department to give

renewed employment to a large class of workmen who have been necessarily

discharged in consequence of the want of means to pay them--a

circumstance attended, especially at this season of the year, with much

privation and suffering.

It gives me great pain to announce to you the loss of the steamship

the _Missouri_ by fire in the Bay of Gibraltar, where she had stopped

to renew her supplies of coal on her voyage to Alexandria, with Mr.

Cushing, the American minister to China, on board. There is ground

for high commendation of the officers and men for the coolness and

intrepidity and perfect submission to discipline evinced under the most

trying circumstances. Surrounded by a raging fire, which the utmost

exertions could not subdue, and which threatened momentarily the

explosion of her well-supplied magazines, the officers exhibited no

signs of fear and the men obeyed every order with alacrity. Nor was she

abandoned until the last gleam of hope of saving her had expired. It is

well worthy of your consideration whether the losses sustained by the

officers and crew in this unfortunate affair should not be reimbursed

to them.

I can not take leave of this painful subject without adverting to the

aid rendered upon the occasion by the British authorities at Gibraltar

and the commander, officers, and crew of the British ship of the line

the _Malabar_, which was lying at the time in the bay. Everything that

generosity or humanity could dictate was promptly performed. It is by

such acts of good will by one to another of the family of nations that

fraternal feelings are nourished and the blessings of permanent peace

secured.

The report of the Postmaster-General will bring you acquainted with the

operations of that Department during the past year, and will suggest

to you such modifications of the existing laws as in your opinion

the exigencies of the public service may require. The change which

the country has undergone of late years in the mode of travel and

transportation has afforded so many facilities for the transmission of

mail matter out of the regular mail as to require the greatest vigilance

and circumspection in order to enable the officer at the head of the

Department to restrain the expenditures within the income. There is also

too much reason to fear that the franking privilege has run into great

abuse. The Department, nevertheless, has been conducted with the

greatest vigor, and has attained at the least possible expense all the

useful objects for which it was established.

In regard to all the Departments, I am quite happy in the belief that

nothing has been left undone which was called for by a true spirit of

economy or by a system of accountability rigidly enforced. This is in

some degree apparent from the fact that the Government has sustained no

loss by the default of any of its agents. In the complex, but at the

same time beautiful, machinery of our system of government, it is not

a matter of surprise that some remote agency may have failed for an

instant to fulfill its desired office; but I feel confident in the

assertion that nothing has occurred to interrupt the harmonious action

of the Government itself, and that, while the laws have been executed

with efficiency and vigor, the rights neither of States nor individuals

have been trampled on or disregarded.

In the meantime the country has been steadily advancing in all that

contributes to national greatness. The tide of population continues

unbrokenly to flow into the new States and Territories, where a refuge

is found not only for our native-born fellow-citizens, but for emigrants

from all parts of the civilized world, who come among us to partake of

the blessings of our free institutions and to aid by their labor to

swell the current of our wealth and power.

It is due to every consideration of public policy that the lakes and

rivers of the West should receive all such attention at the hands

of Congress as the Constitution will enable it to bestow. Works in

favorable and proper situations on the Lakes would be found to be as

indispensably necessary, in case of war, to carry on safe and successful

naval operations as fortifications on the Atlantic seaboard. The

appropriation made by the last Congress for the improvement of the

navigation of the Mississippi River has been diligently and efficiently

applied.

I can not close this communication, gentlemen, without recommending

to your most favorable consideration the interests of this District.

Appointed by the Constitution its exclusive legislators, and forming

in this particular the only anomaly in our system of government--of the

legislative body being elected by others than those for whose advantage

they are to legislate--you will feel a superadded obligation to look

well into their condition and to leave no cause for complaint or regret.

The seat of Government of our associated republics can not but be

regarded as worthy of your parental care.

In connection with its other interests, as well as those of the whole

country, I recommend that at your present session you adopt such

measures in order to carry into effect the Smithsonian bequest as in

your judgment will be best calculated to consummate the liberal intent

of the testator.

When, under a dispensation of Divine Providence, I succeeded to the

Presidential office, the state of public affairs was embarrassing and

critical. To add to the irritation consequent upon a long-standing

controversy with one of the most powerful nations of modern times,

involving not only questions of boundary (which under the most favorable

circumstances are always embarrassing), but at the same time important

and high principles of maritime law, border controversies between

the citizens and subjects of the two countries had engendered a

state of feeling and of conduct which threatened the most calamitous

consequences. The hazards incident to this state of things were greatly

heightened by the arrest and imprisonment of a subject of Great Britain,

who, acting (as it was alleged) as a part of a military force, had aided

in the commission of an act violative of the territorial jurisdiction of

the United States and involving the murder of a citizen of the State of

New York. A large amount of claims against the Government of Mexico

remained unadjusted and a war of several years' continuance with the

savage tribes of Florida still prevailed, attended with the desolation

of a large portion of that beautiful Territory and with the sacrifice of

many valuable lives. To increase the embarrassments of the Government,

individual and State credit had been nearly stricken down and confidence

in the General Government was so much impaired that loans of a small

amount could only be negotiated at a considerable sacrifice. As a

necessary consequence of the blight which had fallen on commerce and

mechanical industry, the ships of the one were thrown out of employment

and the operations of the other had been greatly diminished. Owing to

the condition of the currency, exchanges between different parts of

the country had become ruinously high and trade had to depend on a

depreciated paper currency in conducting its transactions. I shall

be permitted to congratulate the country that under an overruling

Providence peace was preserved without a sacrifice of the national

honor; the war in Florida was brought to a speedy termination; a large

portion of the claims on Mexico have been fully adjudicated and are in

a course of payment, while justice has been rendered to us in other

matters by other nations; confidence between man and man is in a great

measure restored and the credit of this Government fully and perfectly

reestablished; commerce is becoming more and more extended in its

operations and manufacturing and mechanical industry once more reap the

rewards of skill and labor honestly applied; the operations of trade

rest on a sound currency and the rates of exchange are reduced to their

lowest amount.

In this condition of things I have felt it to be my duty to bring to

your favorable consideration matters of great interest in their present

and ultimate results; and the only desire which I feel in connection

with the future is and will continue to be to leave the country

prosperous and its institutions unimpaired.

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