Since your last session Mexico has threatened to renew the war, and has

either made or proposes to make formidable preparations for invading Texas.

She has issued decrees and proclamations, preparatory to the commencement

of hostilities, full of threats revolting to humanity, and which if carried

into effect would arouse the attention of all Christendom. This new

demonstration of feeling, there is too much reason to believe, has been

produced in consequence of the negotiation of the late treaty of annexation

with Texas. The Executive, therefore, could not be indifferent to such

proceedings, and it felt it to be due as well to itself as to the honor of

the country that a strong representation should be made to the Mexican

Government upon the subject. This was accordingly done, as will be seen by

the copy of the accompanying dispatch from the Secretary of State to the

United States envoy at Mexico. Mexico has no right to jeopard the peace of

the world by urging any longer a useless and fruitless contest. Such a

condition of things would not be tolerated on the European continent. Why

should it be on this? A war of desolation, such as is now threatened by

Mexico, can not be waged without involving our peace and tranquillity. It

is idle to believe that such a war could be looked upon with indifference

by our own citizens inhabiting adjoining States; and our neutrality would

be violated in despite of all efforts on the part of the Government to

prevent it. The country is settled by emigrants from the United States

under invitations held out to them by Spain and Mexico. Those emigrants

have left behind them friends and relatives, who would not fail to

sympathize with them in their difficulties, and who would be led by those

sympathies to participate in their struggles, however energetic the action

of the Government to prevent it. Nor would the numerous and formidable

bands of Indians--the most warlike to be found in any land--which

occupy the extensive regions contiguous to the States of Arkansas and

Missouri, and who are in possession of large tracts of country within the

limits of Texas, be likely to remain passive. The inclinations of those

numerous tribes lead them invariably to war whenever pretexts exist.

Mexico had no just ground of displeasure against this Government or people

for negotiating the treaty. What interest of hers was affected by the

treaty? She was despoiled of nothing, since Texas was forever lost to her.

The independence of Texas was recognized by several of the leading powers

of the earth. She was free to treat, free to adopt her own line of policy,

free to take the course which she believed was best calculated to secure

her happiness.

Her Government and people decided on annexation to the United States, and

the Executive saw in the acquisition of such a territory the means of

advancing their permanent happiness and glory. What principle of good

faith, then, was violated? What rule of political morals trampled under

foot? So far as Mexico herself was concerned, the measure should have been

regarded by her as highly beneficial. Her inability to reconquer Texas had

been exhibited, I repeat, by eight (now nine) years of fruitless and

ruinous contest. In the meantime Texas has been growing in population and

resources. Emigration has flowed into her territory from all parts of the

world in a current which continues to increase in strength. Mexico requires

a permanent boundary between that young Republic and herself. Texas at no

distant day, if she continues separate and detached from the United States,

will inevitably seek to consolidate her strength by adding to her domain

the contiguous Provinces of Mexico. The spirit of revolt from the control

of the central Government has heretofore manifested itself in some of those

Provinces, and it is fair to infer that they would be inclined to take the

first favorable opportunity to proclaim their independence and to form

close alliances with Texas. The war would thus be endless, or if cessations

of hostilities should occur they would only endure for a season. The

interests of Mexico, therefore, could in nothing be better consulted than

in a peace with her neighbors which would result in the establishment of a

permanent boundary. Upon the ratification of the treaty the Executive was

prepared to treat with her on the most liberal basis. Hence the boundaries

of Texas were left undefined by the treaty. The Executive proposed to

settle these upon terms that all the world should have pronounced just and

reasonable. No negotiation upon that point could have been undertaken

between the United States and Mexico in advance of the ratification of the

treaty. We should have had no right, no power, no authority, to have

conducted such a negotiation, and to have undertaken it would have been an

assumption equally revolting to the pride of Mexico and Texas and

subjecting us to the charge of arrogance, while to have proposed in advance

of annexation to satisfy Mexico for any contingent interest she might have

in Texas would have been to have treated Texas not as an independent power,

but as a mere dependency of Mexico. This assumption could not have been

acted on by the Executive without setting at defiance your own solemn

declaration that that Republic was an independent State. Mexico had, it is

true, threatened war against the United States in the event the treaty of

annexation was ratified. The Executive could not permit itself to be

influenced by this threat. It represented in this the spirit of our people,

who are ready to sacrifice much for peace, but nothing to intimidation. A

war under any circumstances is greatly to be deplored, and the United

States is the last nation to desire it; but if, as the condition of peace,

it be required of us to forego the unquestionable right of treating with an

independent power of our own continent upon matters highly interesting to

both, and that upon a naked and unsustained pretension of claim by a third

power to control the free will of the power with whom we treat, devoted as

we may be to peace and anxious to cultivate friendly relations with the

whole world, the Executive does not hesitate to say that the people of the

United States would be ready to brave all consequences sooner than submit

to such condition. But no apprehension of war was entertained by the

Executive, and I must express frankly the opinion that had the treaty been

ratified by the Senate it would have been followed by a prompt settlement,

to the entire satisfaction of Mexico, of every matter in difference between

the two countries. Seeing, then, that new preparations for hostile invasion

of Texas were about to be adopted by Mexico, and that these were brought

about because Texas had adopted the suggestions of the Executive upon the

subject of annexation, it could not passively have folded its arms and

permitted a war, threatened to be accompanied by every act that could mark

a barbarous age, to be waged against her because she had done so.

Other considerations of a controlling character influenced the course of

the Executive. The treaty which had thus been negotiated had failed to

receive the ratification of the Senate. One of the chief objections which

was urged against it was found to consist in the fact that the question of

annexation had not been submitted to the ordeal of public opinion in the

United States. However untenable such an objection was esteemed to be, in

view of the unquestionable power of the Executive to negotiate the treaty

and the great and lasting interests involved in the question, I felt it to

be my duty to submit the whole subject to Congress as the best expounders

of popular sentiment. No definitive action having been taken on the subject

by Congress, the question referred itself directly to the decision of the

States and people. The great popular election which has just terminated

afforded the best opportunity of ascertaining the will of the States and

the people upon it. Pending that issue it became the imperative duty of the

Executive to inform Mexico that the question of annexation was still before

the American people, and that until their decision was pronounced any

serious invasion of Texas would be regarded as an attempt to forestall

their judgment and could not be looked upon with indifference. I am most

happy to inform you that no such invasion has taken place; and I trust that

whatever your action may be upon it Mexico will see the importance of

deciding the matter by a resort to peaceful expedients in preference to

those of arms. The decision of the people and the States on this great and

interesting subject has been decisively manifested. The question of

annexation has been presented nakedly to their consideration. By the treaty

itself all collateral and incidental issues which were calculated to divide

and distract the public councils were carefully avoided. These were left to

the wisdom of the future to determine. It presented, I repeat, the isolated

question of annexation, and in that form it has been submitted to the

ordeal of public sentiment. A controlling majority of the people and a

large majority of the States have declared in favor of immediate

annexation. Instructions have thus come up to both branches of Congress

from their respective constituents in terms the most emphatic. It is the

will of both the people and the States that Texas shall be annexed to the

Union promptly and immediately. It may be hoped that in carrying into

execution the public will thus declared all collateral issues may be

avoided. Future Legislatures can best decide as to the number of States

which should be formed out of the territory when the time has arrived for

deciding that question. So with all others. By the treaty the United States

assumed the payment of the debts of Texas to an amount not exceeding

$10,000,000, to be paid, with the exception of a sum falling short of

$400,000, exclusively out of the proceeds of the sales of her public lands.

We could not with honor take the lands without assuming the full payment of

all incumbencies upon them.

Nothing has occurred since your last session to induce a doubt that the

dispositions of Texas remain unaltered. No intimation of an altered

determination on the part of her Government and people has been furnished

to the Executive. She still desires to throw herself under the protection

of our laws and to partake of the blessings of our federative system, while

every American interest would seem to require it. The extension of our

coastwise and foreign trade to an amount almost incalculable, the

enlargement of the market for our manufactures, a constantly growing market

for our agricultural productions, safety to our frontiers, and additional

strength and stability to the Union--these are the results which would

rapidly develop themselves upon the consummation of the measure of

annexation. In such event I will not doubt but that Mexico would find her

true interest to consist in meeting the advances of this Government in a

spirit of amity. Nor do I apprehend any serious complaint from any other

quarter; no sufficient ground exists for such complaint. We should

interfere in no respect with the rights of any other nation. There can not

be gathered from the act any design on our part to do so with their

possessions on this continent. We have interposed no impediments in the way

of such acquisitions of territory, large and extensive as many of them are,

as the leading powers of Europe have made from time to time in every part

of the world. We seek no conquest made by war. No intrigue will have been

resorted to or acts of diplomacy essayed to accomplish the annexation of

Texas. Free and independent herself, she asks to be received into our

Union. It is a question for our own decision whether she shall be received

or not.

The two Governments having already agreed through their respective organs

on the terms of annexation, I would recommend their adoption by Congress in

the form of a joint resolution or act to be perfected and made binding on

the two countries when adopted in like manner by the Government of Texas.

In order that the subject may be fully presented in all its bearings, the

correspondence which has taken place in reference to it since the

adjournment of Congress between the United States, Texas, and Mexico is

herewith transmitted.

The amendments proposed by the Senate to the convention concluded between

the United States and Mexico on the 20th of November, 1843, have been

transmitted through our minister for the concurrence of the Mexican

Government, but, although urged thereto, no action has yet been had on the

subject, nor has any answer been given which would authorize a favorable

conclusion in the future.

The decree of September, 1843, in relation to the retail trade, the order

for the expulsion of foreigners, and that of a more recent date in regard

to passports--all which are considered as in violation of the treaty of

amity and commerce between the two countries--have led to a correspondence

of considerable length between the minister for foreign relations and our

representatives at Mexico, but without any satisfactory result. They remain

still unadjusted, and many and serious inconveniences have already resulted

to our citizens in consequence of them.

Questions growing out of the act of disarming a body of Texan troops under

the command of Major Snively by an officer in the service of the United

States, acting under the orders of our Government, and the forcible entry

into the custom-house at Bryarlys Landing, on Red River, by certain

citizens of the United States, and taking away therefrom the goods seized

by the collector of the customs as forfeited under the laws of Texas, have

been adjusted so far as the powers of the Executive extend. The

correspondence between the two Governments in reference to both subjects

will be found amongst the accompanying documents. It contains a full

statement of all the facts and circumstances, with the views taken on both

sides and the principles on which the questions have been adjusted. It

remains for Congress to make the necessary appropriation to carry the

arrangement into effect, which I respectfully recommend.

The greatly improved condition of the Treasury affords a subject for

general congratulation. The paralysis which had fallen on trade and

commerce, and which subjected the Government to the necessity of resorting

to loans and the issue of Treasury notes to a large amount, has passed

away, and after the payment of upward of $7,000,000 on account of the

interest, and in redemption of more than $5,000,000 of the public debt

which falls due on the 1st of January next, and setting apart upward of

$2,000,000 for the payment of outstanding Treasury notes and meeting an

installment of the debts of the corporate cities of the District of

Columbia, an estimated surplus of upward of $7,000,000 over and above the

existing appropriations will remain in the Treasury at the close of the

fiscal year. Should the Treasury notes continue outstanding as heretofore,

that surplus will be considerably augmented. Although all interest has

ceased upon them and the Government has invited their return to the

Treasury, yet they remain outstanding, affording great facilities to

commerce, and establishing the fact that under a well-regulated system of

finance the Government has resources within itself which render it

independent in time of need, not only of private loans, but also of bank

facilities.

The only remaining subject of regret is that the remaining stocks of the

Government do not fall due at an earlier day, since their redemption would

be entirely within its control. As it is, it may be well worthy the

consideration of Congress whether the law establishing the sinking fund

(under the operation of which the debts of the Revolution and last war with

Great Britain were to a great extent extinguished) should not, with proper

modifications, so as to prevent an accumulation of surpluses, and limited

in amount to a specific sum, be reenacted. Such provision, which would

authorize the Government to go into the market for a purchase of its own

stock on fair terms, would serve to maintain its credit at the highest

point and prevent to a great extent those fluctuations in the price of its

securities which might under other circumstances affect its credit. No

apprehension of this sort is at this moment entertained, since the stocks

of the Government, which but two years ago were offered for sale to

capitalists at home and abroad at a depreciation, and could find no

purchasers, are now greatly above par in the hands of the holders; but a

wise and prudent forecast admonishes us to place beyond the reach of

contingency the public credit.

It must also be a matter of unmingled gratification that under the existing

financial system (resting upon the act of 1789 and the resolution of 1816)

the currency of the country has attained a state of perfect soundness; and

the rates of exchange between different parts of the Union, which in 1841

denoted by their enormous amount the great depreciation and, in fact,

worthlessness of the currency in most of the States, are now reduced to

little more than the mere expense of transporting specie from place to

place and the risk incident to the operation. In a new country like that of

the United States, where so many inducements are held out for speculation,

the depositories of the surplus revenue, consisting of banks of any

description, when it reaches any considerable amount, require the closest

vigilance on the part of the Government. All banking institutions, under

whatever denomination they may pass, are governed by an almost exclusive

regard to the interest of the stockholders. That interest consists in the

augmentation of profits in the form of dividends, and a large surplus

revenue intrusted to their custody is but too apt to lead to excessive

loans and to extravagantly large issues of paper. As a necessary

consequence prices are nominally increased and the speculative mania very

soon seizes upon the public mind. A fictitious state of prosperity for a

season exists, and, in the language of the day, money becomes plenty.

Contracts are entered into by individuals resting on this unsubstantial

state of things, but the delusion speedily passes away and the country is

overrun with an indebtedness so weighty as to overwhelm many and to visit

every department of industry with great and ruinous embarrassment. The

greatest vigilance becomes necessary on the part of Government to guard

against this state of things. The depositories must be given distinctly to

understand that the favors of the Government will be altogether withdrawn,

or substantially diminished, if its revenues shall be regarded as additions

to their banking capital or as the foundation of an enlarged circulation.

The Government, through its revenue, has at all times an important part to

perform in connection with the currency, and it greatly depends upon its

vigilance and care whether the country be involved in embarrassments

similar to those which it has had recently to encounter, or, aided by the

action of the Treasury, shall be preserved in a sound and healthy

condition.

The dangers to be guarded against are greatly augmented by too large a

surplus of revenue. When that surplus greatly exceeds in amount what shall

be required by a wise and prudent forecast to meet unforeseen

contingencies, the Legislature itself may come to be seized with a

disposition to indulge in extravagant appropriations to objects many of

which may, and most probably would, be found to conflict with the

Constitution. A fancied expediency is elevated above constitutional

authority, and a reckless and wasteful extravagance but too certainly

follows.

The important power of taxation, which when exercised in its most

restricted form is a burthen on labor and production, is resorted to under

various pretexts for purposes having no affinity to the motives which

dictated its grant, and the extravagance of Government stimulates

individual extravagance until the spirit of a wild and ill-regulated

speculation involves one and all in its unfortunate results. In view of

such fatal consequences, it may be laid down as an axiom rounded in moral

and political truth that no greater taxes should be imposed than are

necessary for an economical administration of the Government, and that

whatever exists beyond should be reduced or modified. This doctrine does in

no way conflict with the exercise of a sound discrimination in the

selection of the articles to be taxed, which a due regard to the public

weal would at all times suggest to the legislative mind. It leaves the

range of selection undefined; and such selection should always be made with

an eye to the great interests of the country. Composed as is the Union of

separate and independent States, a patriotic Legislature will not fail in

consulting the interests of the parts to adopt such course as will be best

calculated to advance the harmony of the whole, and thus insure that

permanency in the policy of the Government without which all efforts to

advance the public prosperity are vain and fruitless.

This great and vitally important task rests with Congress, and the

Executive can do no more than recommend the general principles which should

govern in its execution.

I refer you to the report of the Secretary of War for an exhibition of the

condition of the Army, and recommend to you as well worthy your best

consideration many of the suggestions it contains. The Secretary in no

degree exaggerates the great importance of pressing forward without delay

in the work of erecting and finishing the fortifications to which he

particularly alludes. Much has been done toward placing our cities and

roadsteads in a state of security against the hazards of hostile attack

within the last four years; but considering the new elements which have

been of late years employed in the propelling of ships and the formidable

implements of destruction which have been brought into service, we can not

be too active or vigilant in preparing and perfecting the means of defense.

I refer you also to his report for a full statement of the condition of the

Indian tribes within our jurisdiction. The Executive has abated no effort

in carrying into effect the well-established policy of the Government which

contemplates a removal of all the tribes residing within the limits of the

several States beyond those limits, and it is now enabled to congratulate

the country at the prospect of an early consummation of this object. Many

of the tribes have already made great progress in the arts of civilized

life, and through the operation of the schools established among them,

aided by the efforts of the pious men of various religious denominations

who devote themselves to the task of their improvement, we may fondly hope

that the remains of the formidable tribes which were once masters of this

country will in their transition from the savage state to a condition of

refinement and cultivation add another bright trophy to adorn the labors of

a well-directed philanthropy.

The accompanying report of the Secretary of the Navy will explain to you

the situation of that branch of the service. The present organization of

the Department imparts to its operations great efficiency, but I concur

fully in the propriety of a division of the Bureau of Construction,

Equipment, Increase, and Repairs into two bureaus. The subjects as now

arranged are incongruous, and require to a certain extent information and

qualifications altogether dissimilar.

The operations of the squadron on the coast of Africa have been conducted

with all due attention to the object which led to its origination, and I am

happy to say that the officers and crews have enjoyed the best possible

health under the system adopted by the officer in command. It is believed

that the United States is the only nation which has by its laws subjected

to the punishment of death as pirates those who may be engaged in the slave

trade. A similar enactment on the part of other nations would not fail to

be attended by beneficial results.

In consequence of the difficulties which have existed in the way of

securing titles for the necessary grounds, operations have not yet been

commenced toward the establishment of the navy-yard at Memphis. So soon as

the title is perfected no further delay will be permitted to intervene. It

is well worthy of your consideration whether Congress should not direct the

establishment of a ropewalk in connection with the contemplated navy-yard,

as a measure not only of economy, but as highly useful and necessary. The

only establishment of the sort now connected with the service is located at

Boston, and the advantages of a similar establishment convenient to the

hemp-growing region must be apparent to all.

The report of the Secretary presents other matters to your consideration of

an important character in connection with the service.

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