1. That neither of the two Powers has an absolute and indisputable right

to the whole contested territory; that each may recede from its extreme

pretensions without impairing national honor or wounding national pride;

and that the way is therefore still open for a renewal of negotiations.

2. That the avowed object of the United States, in giving notice of the

abrogation of the convention, is the determination to assert and

maintain their assumed right of absolute and exclusive sovereignty over

the whole territory; that Great Britain is fully committed on that

point, and has constantly and explicitly declared that such an attempt

would be resisted, and the British interests in that quarter be

protected; and that war is therefore the unavoidable consequence of such

a decisive step--a war not only necessarily calamitous and expensive,

but in its character aggressive, not justifiable by the magnitude and

importance of its object, and of which the chances are uncertain.

3. That the inconveniences of the present state of things may in a great

degree be avoided; that, if no war should ensue, they will be the same,

if not greater, without than under a convention; that not a single

object can be gained by giving the notice at this time, unless it be to

do something not permitted by the present convention, and therefore

provoking resistance and productive of war. If a single other advantage

can be gained by giving the notice, let it be stated.

4th. That it has been fully admitted by Great Britain that, whether

under or without a convention, the United States have the same rights as

herself, to trade, to navigate, and to occupy and make settlements in

and over every part of the territory; and that, if this state of things

be not disturbed, natural causes must necessarily give the whole

territory to the United States.

Under these circumstances, it is only asked, that the subject may be

postponed for the present; that Government should not commit itself by

any premature act or declaration; that, instead of increasing the

irritation and excitement which exist on both sides, time be given for

mutual reflection, and for the subdual or subsidence of angry and

violent feelings. Then, and then only, can the deliberate opinion of the

American people on this momentous question be truly ascertained. It is

not perceived how the postponement for the present and for a time can,

in any shape or in the slightest degree, injure the United States.

It is certainly true that England is very powerful, and has often abused

her power, in no case in a more outrageous manner than by the

impressment of seamen, whether American, English, or other foreigners,

sailing under and protected by the American flag. I am not aware that

there has ever been any powerful nation, even in modern times, and

professing Christianity, which has not occasionally abused its power.

The United States, who always appealed to justice during their early

youth, seem, as their strength and power increase, to give symptoms of a

similar disposition. Instead of useless and dangerous recriminations,

might not the two nations, by their united efforts, promote a great

object, and worthy of their elevated situation?

With the single exception of the territory of Oregon, which extends from

42 to 54° 40´ north latitude, all the American shores of the Pacific

Ocean, from Cape Horn to Behring's Straits, are occupied, on the north

by the factories of the Russian Fur Company, southwardly by

semi-civilized States, a mixture of Europeans of Spanish descent and of

native Indians, who, notwithstanding the efforts of enlightened,

intelligent, and liberal men, have heretofore failed in the attempt to

establish governments founded on law, that might ensure liberty,

preserve order, and protect persons and property. It is in Oregon alone

that we may hope to see a portion of the western shores of America

occupied and inhabited by an active and enlightened nation, which may

exercise a moral influence over her less favored neighbors, and extend

to them the benefits of a more advanced civilisation. It is on that

account that the wish has been expressed that the Oregon territory may

not be divided. The United States and England are the only Powers who

lay any claim to that country, the only nations which may and must

inhabit it. It is not, fortunately, in the power of either Government to

prevent this taking place; but it depends upon them, whether they shall

unite in promoting the object, or whether they shall bring on both

countries the calamities of an useless war, which may retard but not

prevent the ultimate result. It matters but little whether the

inhabitants shall come from England or from the United States. It would

seem that more importance might be attached to the fact that, within a

period of fifteen years, near one million of souls are now added to the

population of the United States by migrations from the dominions of

Great Britain; yet, since permitted by both Powers, they may be presumed

to be beneficial to both. The emigrants to Oregon, whether Americans or

English, will be united together by the community of language and

literature, of the principles of law, and of all the fundamental

elements of a similar civilisation.

The establishment of a kindred and friendly Power on the North-west

Coast of America is all that England can expect, all perhaps that the

United States ought to desire. It seems almost incredible that, whilst

that object may be attained by simply not impeding the effect of natural

causes, two kindred nations, having such powerful motives to remain at

peace, and standing at the head of European and American civilisation,

should, in this enlightened age, give to the world the scandalous

spectacle, perhaps not unwelcome to some of the beholders, of an

unnatural and an unnecessary war; that they should apply all their

faculties and exhaust their resources in inflicting, each on the other,

every injury in their power, and for what purpose? The certain

consequence, independent of all the direct calamities and miseries of

war, will be a mutual increase of debt and taxation, and the ultimate

fate of Oregon will be the same as if the war had not taken place.

APPENDIX.

WAR EXPENSES.

Those expenses may be arranged under three heads: 1st. Such as are of a

permanent nature, and should be considered as belonging to the Peace

establishment of the country. 2dly. Those which should be adopted when

there is an impending danger of war. 3dly. Those which actual war

renders necessary.

To the first class belong all those, which provide for objects that

require considerable time to be executed, and cannot, without great

difficulty, be accomplished pending a war. Such are fortifications,

building ships of war including steamers, accumulating materials for the

same purpose, Navy Yards, providing a sufficient artillery, and other

important objects of the ordnance department. It may be taken for

granted, that Government has done, or will do all that is necessary and

practicable in that respect.

The preparatory measures which should be adopted, when there is danger

of war, are those respecting which the greatest variety of opinions must

be expected. It has been repeatedly asserted, that such is the structure

of our Government, that it never will or can prepare for war, till after

it has actually commenced; that is to say, that, because Congress was

dilatory in making effectual provision for carrying on the last war

against Great Britain, and because the Administration, at the time when

it was declared, was inefficient and not well calculated for conducting

it, the United States are bound for ever to incur, at the commencement

of every war, the disasters of one or two years, before they can be

induced to put on their armor. The past is irrevocable and of no other

use, than as far as it may teach us to avoid the faults that were

formerly committed. When our Government relies on the people for being

sustained in making war, its confidence must be entire. They must be

told the whole truth; and if they are really in favor of war, they will

cheerfully sustain Government in all the measures necessary to carry it

into effect. The frank annunciation of the necessity of such measures is

called, "creating a panic." It is not the first time that under similar

circumstances the same language has been held. If there be no danger or

intention of making war, those create a panic, who proclaim a

determination to assert the exclusive sovereignty of the United States

over the whole contested territory, with the full knowledge that Great

Britain has uniformly and explicitly declared, that she would resist any

such attempt. If instead of telling the people the whole truth, the

attempt to conceal from them the necessity of the measures requisite for

carrying on the war should be successful, a reaction in the public

sentiment will most certainly take place, whenever it will have become

impossible to delay any longer the heavy burden of taxation, for which

the Nation had not been prepared.

I will not dwell on the necessary preparations of a military character,

otherwise than by referring to some notorious facts.

The primary causes of the disastrous results of the campaign of 1812,

were the want of a naval force on the Lakes, and that of a sufficient

regular force. Government had obtained a correct statement of the

regular force of the British in Canada, with the exception of the

garrison of Quebec. This last was estimated at about three thousand men,

and could not be lessened without great inconvenience and some danger.

The regular force at Montreal, St. John's, and Three Rivers, amounted to

1130 men; that in the whole of Upper Canada, to 720. The act to raise an

additional military force of 25,000 men was passed on the 11th of

January, 1812. The selection of the officers was not completed before

the termination of that year; the recruiting service was not organized

in time; the enlistments for the regular army fell short of the most

moderate calculation; and the total number recruited was so small, as to

render it impossible to strike a decisive blow on any one of the most

important points from Montreal upwards, insignificant as was the force

by which they were defended. The volunteer act was also extremely

unproductive. At that time the treasury was amply supplied; and the want

was not that of money, but of a regular force.

Such force cannot be raised without money; and yet it will be admitted

that it would be extremely difficult to induce Congress to lay internal

taxes or duties before war was declared or certain. In order to provide

means for having an additional regular force ready to act as soon as

actual war takes place, a loan and Treasury notes must be resorted to.

But it is deemed absolutely necessary, that the internal taxes should be

imposed simultaneously with the declaration of war, and that provision

should be made for their immediate collection. With the exception of the

act for doubling the duties on importations, Congress did not pass any

law for imposing any new taxes or duties, till more than one year after

the declaration of the last war; nor did it even lay a second direct tax

in the year 1814. It was not till after public credit was ruined, after

Treasury notes which were had due remained unpaid, and after Mr. Dallas

had been placed at the head of the Treasury, that at last the laws for

imposing a double direct tax, for increasing the rate of the existing

internal duties, and for laying new ones, were enacted. The peace was

ratified immediately after; and in point of fact, no more than 3,877,000

dollars were paid in the Treasury before the end of the war, on account

of the direct tax and all other internal taxes or duties. There were

received from the same sources 20,654,000 dollars in the years 1815,

1816 and 1817.

The preparatory measures necessary, in order to insure an immediate

collection of internal taxes, whenever the laws imposing such taxes

shall have been passed, are those on which I may speak with confidence.

These consist simply in a previous organization of the machinery

necessary for the collection of every species of internal taxes, and the

assessment of a direct tax. The proper selection of the numerous

officers necessary for the collection always consumes several months. A

previous selection and appointment of those officers would obviate that

difficulty, and would cost nothing, as though appointed they should

receive no pay till called into actual service; this would be the

natural consequence of the manner in which collectors are paid, this

being a per centage on the money collected. The only other necessary

measure in that respect, is that the Secretary of the Treasury should,

at the time of their appointment, supply the collectors with all the

necessary forms of keeping and rendering their accounts.

The assessment in each State of the taxable property of every individual

who possesses such property, is the only operation which requires

considerable time and causes a proportionate delay. This cannot be

otherwise obviated than by making that assessment a preparatory measure,

to be completed before actual war takes place.

In order to facilitate and hasten the process of assessment, I

undertook, in the year 1812, to apportion the direct tax on the several

Counties and State Districts in each State; and the Act of 2d August,

1813, which laid a direct tax of three millions of dollars, was passed

in conformity with that apportionment The process was easy for every

State in which there was a direct State tax; but though derived from the

best data that could be collected, it was defective and partly arbitrary

for the States in which there was no State tax. As there is at present

hardly any (if any) State which has not laid a direct State tax, this

mode may be adopted for the proposed preparatory assessment. This will

reduce the duty of the assessors to the assessment of the quota of each

County or District, on the several individuals liable to the tax, and

the total expense of the assessment to a sum not exceeding probably two

hundred thousand dollars. A more regular and correct assessment will, of

course, be provided for, with respect to the direct taxes which may be

laid after the first year of the war.

The only objection is that of the expense, which would prove useless if

the tax should not be laid, or in other words, if war should not take

place; but certainly this is too small an item to deserve consideration.

This organization, easy and cheap as it is, is all that is necessary in

order to secure an immediate collection of a direct and other internal

taxes and duties, from the moment when they shall have been imposed by

Congress.

The probable annual expenses which must be incurred in a war with

England, and the resources for defraying them, are the next objects of

inquiry.

It is extremely difficult to draw any correct inference from the

expenses of the last war with England: the amount of the arrearages due

on account of the military services at the time when the peace was

ratified, is not stated with precision in any of the public documents

which I have seen. Although the laws show the number of men voted, that

of those actually raised has never to my knowledge been officially

stated. There can be no doubt that the want of a proper organization

increased the amount of expenditure much beyond that which would have

been sufficient under a regular and efficient system. This has

undoubtedly been much improved; yet the expenses incurred in the

Seminole war, compared with the number of men employed and that of the

hostile Indians, show that either there are still some defects in the

organization, or that there were great abuses in the execution.

The payments from the Treasury for the military department, embracing

only those for the army proper, militia and volunteers, and exclusive of

those for fortifications and the Indian department, amounted for the

year 1813 to 18,936,000 dollars, and for the year 1814 to 20,508,000

dollars. The disbursements for the navy are stated at 6,446,000 and

7,311,000 dollars for these two years respectively. By comparing the

reports of the Secretaries of the Treasury of December 1815, 1816, 1817,

it would appear that the arrearages due on 1st January, 1815, exceeded

ten millions of dollars: and it seems certain that the actual war

expenses of 1814 could not have fallen short of 35 to 40 millions of

dollars. It has been asserted that the regular force during that year

amounted to 35,000 men.

The population of the United States has nearly trebled during the

thirty-four years which have elapsed since that in which the last war

against England was declared. Their wealth and resources have increased

in the same ratio; and that, in case of war, these should be brought

into action as promptly as possible, admits of no doubt. Once engaged in

the conflict, to make the war as efficient as possible will shorten its

duration, and can alone secure honorable terms of peace. I have not the

documents necessary for making an approximate estimate of the annual

expenses of a war with Great Britain; and if I had, I could not at this

time perform that amount of labor which is absolutely necessary in order

to draw correct inferences. Taking only a general view of the subject,

and considering the great difference of expense in keeping a navy in

active service, between one of eight frigates and one of ten ships of

the line, fourteen frigates and a competent number of steamers; that

Texas and Oregon are additional objects of defence; that the extensive

system of fortifications which has been adopted will require about

fifteen thousand additional men; and that, in order to carry a

successful and decisive war against the most vulnerable portion of the

British dominions, a great disposable regular force is absolutely

necessary; I am very sure that I fall below the mark in saying that,

after the first year of the war, and when the resources of the country

shall be fully brought into action, the annual military and naval

expenses will amount to sixty or seventy millions of dollars. To this

must be added the expenses for all other objects, which, for the year

ending on the 30th of June, 1845, amounted to near fifteen millions, but

which the Secretary of the Treasury hopes may be reduced to eleven

millions and a half. The gross annual expenses for all objects will be

estimated at seventy-seven millions; to be increased annually by the

annual interest on each successive loan.

In order to ascertain the amount of new revenue and loans required to

defray that expense, the first question which arises, is the diminution

of the revenue derived from customs, which will be the necessary

consequence of the war.

The actual receipts into the Treasury, arising from that source of

revenue, were in round numbers for the years 1812, 1813, 1814,

respectively 8,960,000, 13,225,000, and 6,000,000 of dollars; and the

nett revenue which accrued during those three years respectively

amounted to 13,142,000, 6,708,000, and 4,250,000 dollars. From the 1st

of July, 1812, the rate of duties on importations was doubled; and in

order to compare these receipts with those collected in peace time, they

must be reduced for those three years respectively, to 7,470,000,[3]

6,600,000 and 3,000,000; or, if the revenue accrued be compared (which

is the correct mode), to 9,850,000,[3] 3,354,000, and 2,125,000 dollars.

At that time the duties accrued were, on account of the credit allowed,

collected on an average only six or eight months later; and the

unexpected importations in the latter half of the year 1812 in American

vessels which arrived with British licenses, subsequent to the

declaration of war and to the act which doubled the rate of duties,

swelled considerably the receipts of the year 1813. It was only in 1814

that the full effect of the war on the revenue derived from that source

was felt.

The diminution in the amount of American and foreign tonnage employed in

the foreign trade of the United States is strongly exhibited by the

following statement:

Tonnage in foreign trade, U. S. American ves. Foreign ves. Total.

Year 1811 948,207 33,203 981,450

" 1812 667,999 47,099 715,098

" 1813 237,348 113,827 351,175

" 1814 59,626 48,302 107,928

And it must be recollected that during the last nine months of 1814,

Great Britain was at peace with all the other Powers of Europe, and that

these were therefore neutrals. Yet they hardly ventured to trade with

us.

The amount of receipts into the Treasury derived from customs, as well

as that of the revenue accrued, exceeded, during the eleven years 1801

to 1811, 132,700,000 dollars, being an annual average of about

12,000,000 dollars. During the same eleven years the average amount of

tonnage employed in the foreign trade of the United States was 943,670

tons, of which 844,170 were in American, and 99,500 foreign vessels.

Thus in the year 1814, the revenue derived from customs had been

reduced to one fourth part (to nearly one sixth part, if compared

according to the revenue accrued, or amount of importations), the

tonnage employed in the foreign trade of the United States to nearly one

ninth; and that of the American vessels employed in that trade, to one

fourteenth part of their respective average amount during the eleven

years of peace.

The small American navy did during the last war with England all and

more than could have been expected. The fact was established to the

satisfaction of the world and of Great Britain herself, that the navy of

the United States, with a parity of force, was at least equal to that of

England. But the prodigious numerical superiority of the British navy

rendered it impossible for a few frigates to protect the commerce of the

United States, which was accordingly almost annihilated. We have now ten

ships of the line, and a proportionate number of frigates and smaller

vessels. The great numerical superiority of the British navy still

continues; and it cannot be doubted that, in case of war, every exertion

will be made by the British Government to maintain its superiority in

our seas and on our coasts. Still it is but a portion of her force that

can be employed in that way, and, taking every circumstance into

consideration, it may be confidently hoped that our commerce, though

much lessened, will be partially protected by our navy. Although the

actual diminution which will be experienced is altogether conjectural, I

think that no great error is to be apprehended in estimating the revenue

from customs, after the first year of the war, at about one half of its

present amount; and the whole revenue from that source, from the sale of

lands and all the branches of the existing income, at fourteen millions

of dollars; leaving to be provided for sixty to sixty-five millions,

besides the interest on loans, which, for a war of three years, may be

estimated at about six millions of dollars on an average. However

energetic and efficient Congress and the Executive may be, the resources

and strength of the nation can be but gradually brought forth: the

expenses will therefore be less during the first year, after which the

whole amount will be required and will be annually wanted. In reference

therefore to the second year of the war--

Assuming the total war expenses at $65,000,000

All the others at 12,000,000

------------

In all, $77,000,000

From which deduct for existing revenue, 14,000,000

------------

To be provided for by taxes and loans, $63,000,000

On the principle that the amount of annual taxes

should be at least equal to the expenses of

the peace establishment and the interest on

the war loans, annual peace expenses at 27,000,000

And for interest on the loans of 1st and 2d years,

viz. 1st year 25, and 2d year 45 millions at

7 per cent. 5,000,000

------------

Together, $32,000,000

From which deduct existing revenue, 14,000,000

------------

Leaves to be provided for by new taxes, at least $18,000,000

And by loans, 45,000,000

------------

$63,000,000

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