past been pending between the Government of the French Republic and that of
the Sandwich Islands may be peaceably and durably adjusted so as to secure
the independence of those islands. Long before the events which have of
late imparted so much importance to the possessions of the United States on
the Pacific we acknowledged the independence of the Hawaiian Government.
This Government was first in taking that step, and several of the leading
powers of Europe immediately followed. We were influenced in this measure
by the existing and prospective importance of the islands as a place of
refuge and refreshment for our vessels engaged in the whale fishery, and by
the consideration that they lie in the course of the great trade which must
at no distant day be carried on between the western coast of North America
and eastern Asia.
We were also influenced by a desire that those islands should not pass
under the control of any other great maritime state, but should remain in
an independent condition, and so be accessible and useful to the commerce
of all nations. I need not say that the importance of these considerations
has been greatly enhanced by the sudden and vast development which the
interests of the United States have attained in California and Oregon, and
the policy heretofore adopted in regard to those islands will be steadily
pursued.
It is gratifying, not only to those who consider the commercial interests
of nations, but also to all who favor the progress of knowledge and the
diffusion of religion, to see a community emerge from a savage state and
attain such a degree of civilization in those distant seas. It is much to
be deplored that the internal tranquillity of the Mexican Republic should
again be seriously disturbed, for since the peace between that Republic and
the United States it had enjoyed such comparative repose that the most
favorable anticipations for the future might with a degree of confidence
have been indulged. These, however, have been thwarted by the recent
outbreak in the State of Tamaulipas, on the right bank of the Rio Bravo.
Having received information that persons from the United States had taken
part in the insurrection, and apprehending that their example might be
followed by others, I caused orders to be issued for the purpose of
preventing any hostile expeditions against Mexico from being set on foot in
violation of the laws of the United States. I likewise issued a
proclamation upon the subject, a copy of which is herewith laid before you.
This appeared to be rendered imperative by the obligations of treaties and
the general duties of good neighborhood.
In my last annual message I informed Congress that citizens of the United
States had undertaken the connection of the two oceans by means of a
railroad across the Isthmus of Tehuantepec, under a grant of the Mexican
Government to a citizen of that Republic, and that this enterprise would
probably be prosecuted with energy whenever Mexico should consent to such
stipulations with the Government of the United States as should impart a
feeling of security to those who should invest their property in the
enterprise. A convention between the two Governments for the accomplishment
of that end has been ratified by this Government, and only awaits the
decision of the Congress and the Executive of that Republic.
Some unexpected difficulties and delays have arisen in the ratification of
that convention by Mexico, but it is to be presumed that her decision will
be governed by just and enlightened views, as well of the general
importance of the object as of her own interests and obligations.
In negotiating upon this important subject this Government has had in view
one, and only one, object. That object has been, and is, the construction
or attainment of a passage from ocean to ocean, the shortest and the best
for travelers and merchandise, and equally open to all the world. It has
sought to obtain no territorial acquisition, nor any advantages peculiar to
itself; and it would see with the greatest regret that Mexico should oppose
any obstacle to the accomplishment of an enterprise which promises so much
convenience to the whole commercial world and such eminent advantages to
Mexico herself. Impressed with these sentiments and these convictions, the
Government will continue to exert all proper efforts to bring about the
necessary arrangement with the Republic of Mexico for the speedy completion
of the work. For some months past the Republic of Nicaragua has been the
theater of one of those civil convulsions from which the cause of free
institutions and the general prosperity and social progress of the States
of Central America have so often and so severely suffered. Until quiet
shall have been restored and a government apparently stable shall have been
organized, no advance can prudently be made in disposing of the questions
pending between the two countries.
I am happy to announce that an interoceanic communication from the mouth of
the St. John to the Pacific has been so far accomplished as that passengers
have actually traversed it and merchandise has been transported over it,
and when the canal shall have been completed according to the original plan
the means of communication will be further improved. It is understood that
a considerable part of the railroad across the Isthmus of Panama has been
completed, and that the mail and passengers will in future be conveyed
thereon. Whichever of the several routes between the two oceans may
ultimately prove most eligible for travelers to and from the different
States on the Atlantic and Gulf of Mexico and our coast on the Pacific,
there is little reason to doubt that all of them will be useful to the
public, and will liberally reward that individual enterprise by which alone
they have been or are expected to be carried into effect. Peace has been
concluded between the contending parties in the island of St. Domingo, and,
it is hoped, upon a durable basis. Such is the extent of our commercial
relations with that island that the United States can not fail to feel a
strong interest in its tranquillity. The office of commissioner to China
remains unfilled. Several persons have been appointed, and the place has
been offered to others, all of whom have declined its acceptance on the
ground of the inadequacy of the compensation. The annual allowance by law
is $6,000, and there is no provision for any outfit. I earnestly recommend
the consideration of this subject to Congress. Our commerce with China is
highly important, and is becoming more and more so in consequence of the
increasing intercourse between our ports on the Pacific Coast and eastern
Asia. China is understood to be a country in which living is very
expensive, and I know of no reason why the American commissioner sent
thither should not be placed, in regard to compensation, on an equal
footing with ministers who represent this country at the Courts of Europe.
By reference to the report of the Secretary of the Treasury it will be seen
that the aggregate receipts for the last fiscal year amounted to
$52,312,979.87, which, with the balance in the Treasury on the 1st July,
1850, gave as the available means for the year the sum of $58,917,524.36.
The total expenditures for the same period were $48,005,878.68. The total
imports for the year ending June 30, 1851, were $215,725,995, of which
there were in specie $4,967,901. The exports for the same period were
$217,517,130, of which there were of domestic products $178,546,555;
foreign goods reexported, $9,738,695; specie, $29,231,880.
Since the 1st of December last the payments in cash on account of the
public debt, exclusive of interest, have amounted to $7,501,456.56, which,
however, includes the sum of $3,242,400, paid under the twelfth article of
the treaty with Mexico, and the further sum of $2,591,213.45, being the
amount of awards to American citizens under the late treaty with Mexico,
for which the issue of stock was authorized, but which was paid in cash
from the Treasury.
The public debt on the 20th ultimo, exclusive of the stock authorized to be
issued to Texas by the act of 9th September, 1850, was $62,560,395.26.
The receipts for the next fiscal year are estimated at $51,800,000, which,
with the probable unappropriated balance in the Treasury on the 30th June
next, will give as the probable available means for that year the sum of
$63,258,743.09.
It has been deemed proper, in view of the large expenditures consequent
upon the acquisition of territory from Mexico, that the estimates for the
next fiscal year should be laid before Congress in such manner as to
distinguish the expenditures so required from the otherwise ordinary
demands upon the Treasury.
The total expenditures for the next fiscal year are estimated at
$42,892,299.19, of which there is required for the ordinary purposes of the
Government, other than those consequent upon the acquisition of our new
territories, and deducting the payments on account of the public debt, the
sum of $33,343,198.08, and for the purposes connected, directly or
indirectly, with those territories and in the fulfillment of the
obligations of the Government contracted in consequence of their
acquisition the sum of $9,549,101.11.
If the views of the Secretary of the Treasury in reference to the
expenditures required for these territories shall be met by corresponding
action on the part of Congress, and appropriations made in accordance
therewith, there will be an estimated unappropriated balance in the
Treasury on the 30th June, 1853, of $20,366,443.90 wherewith to meet that
portion of the public debt due on the 1st of July following, amounting to
$6,237,931.35, as well as any appropriations which may be made beyond the
estimates.
In thus referring to the estimated expenditures on account of our newly
acquired territories, I may express the hope that Congress will concur with
me in the desire that a liberal course of policy may be pursued toward
them, and that every obligation, express or implied, entered into in
consequence of their acquisition shall be fulfilled by the most liberal
appropriations for that purpose.
The values of our domestic exports for the last fiscal year, as compared
with those of the previous year, exhibit an increase of $43,646,322. At
first view this condition of our trade with foreign nations would seem to
present the most flattering hopes of its future prosperity. An examination
of the details of our exports, however, will show that the increased value
of our exports for the last fiscal year is to be found in the high price of
cotton which prevailed during the first half of that year, which price has
since declined about one-half.
The value of our exports of breadstuffs and provisions, which it was
supposed the incentive of a low tariff and large importations from abroad
would have greatly augmented, has fallen from $68,701,921 in 1847 to
$26,051,373 in 1850 and to $21,948,653 in 1851, with a strong probability,
amounting almost to a certainty, of a still further reduction in the
current year.
The aggregate values of rice exported during the last fiscal year, as
compared with the previous year, also exhibit a decrease, amounting to
$460,917, which, with a decline in the values of the exports of tobacco for
the same period, make an aggregate decrease in these two articles of
$1,156,751.
The policy which dictated a low rate of duties on foreign merchandise, it
was thought by those who promoted and established it, would tend to benefit
the farming population of this country by increasing the demand and raising
the price of agricultural products in foreign markets.
The foregoing facts, however, seem to show incontestably that no such
result has followed the adoption of this policy. On the contrary,
notwithstanding the repeal of the restrictive corn laws in England, the
foreign demand for the products of the American farmer has steadily
declined, since the short crops and consequent famine in a portion of
Europe have been happily replaced by full crops and comparative abundance
of food.
It will be seen by recurring to the commercial statistics for the past year
that the value of our domestic exports has been increased in the single
item of raw cotton by $40,000,000 over the value of that export for the
year preceding. This is not due to any increased general demand for that
article, but to the short crop of the preceding year, which created an
increased demand and an augmented price for the crop of last year. Should
the cotton crop now going forward to market be only equal in quantity to
that of the year preceding and be sold at the present prices, then there
would be a falling off in the value of our exports for the present fiscal
year of at least $40,000,000 compared with the amount exported for the year
ending 30th June, 1851.
The production of gold in California for the past year seems to promise a
large supply of that metal from that quarter for some time to come. This
large annual increase of the currency of the world must be attended with
its usual results. These have been already partially disclosed in the
enhancement of prices and a rising spirit of speculation and adventure,
tending to overtrading, as well at home as abroad. Unless some salutary
check shall be given to these tendencies it is to be feared that
importations of foreign goods beyond a healthy demand in this country will
lead to a sudden drain of the precious metals from us, bringing with it, as
it has done in former times, the most disastrous consequences to the
business and capital of the American people.
The exports of specie to liquidate our foreign debt during the past fiscal
year have been $24,963,979 over the amount of specie imported. The exports
of specie during the first quarter of the present fiscal year have been
$14,651,827. Should specie continue to be exported at this rate for the
remaining three quarters of this year, it will drain from our metallic
currency during the year ending 30th June, 1852, the enormous amount of
$58,607,308.
In the present prosperous condition of the national finances it will become
the duty of Congress to consider the best mode of paying off the public
debt. If the present and anticipated surplus in the Treasury should not be
absorbed by appropriations of an extraordinary character, this surplus
should be employed in such way and under such restrictions as Congress may
enact in extinguishing the outstanding debt of the nation.
By reference to the act of Congress approved 9th September, 1850, it will
be seen that, in consideration of certain concessions by the State of
Texas, it is provided that--
The United States shall pay to the State of Texas the sum of $10,000,000 in
a stock bearing 5 per cent interest and redeemable at the end of fourteen
years, the interest payable half-yearly at the Treasury of the United
States.
In the same section of the law it is further provided--
That no more than five millions of said stock shall be issued until the
creditors of the State holding bonds and other certificates of stock of
Texas, for which duties on imports were specially pledged, shall first file
at the Treasury of the United States releases of all claims against the
United States for or on account of said bonds or certificates, in such form
as shall be prescribed by the Secretary of the Treasury and approved by the
President of the United States.
The form of release thus provided for has been prescribed by the Secretary
of the Treasury and approved. It has been published in all the leading
newspapers in the commercial cities of the United States, and all persons
holding claims of the kind specified in the foregoing proviso were required
to file their releases (in the form thus prescribed) in the Treasury of the
United States on or before the 1st day of October, 1851. Although this
publication has been continued from the 25th day of March, 1851, yet up to
the 1st of October last comparatively few releases had been filed by the
creditors of Texas.
The authorities of the State of Texas, at the request of the Secretary of
the Treasury, have furnished a schedule of the public debt of that State
created prior to her admission into the Union, with a copy of the laws
under which each class was contracted. I have, from the documents furnished
by the State of Texas, determined the classes of claims which in my
judgment fall within the provisions of the act of Congress of the 9th of
September, 1850.
On being officially informed of the acceptance by Texas of the propositions
contained in the act referred to I caused the stock to be prepared, and the
five millions which are to be issued unconditionally, bearing an interest
of 5 per cent from the 1st day of January, 1851, have been for some time
ready to be delivered to the State of Texas. The authorities of Texas up to
the present time have not authorized anyone to receive this stock, and it
remains in the Treasury Department subject to the order of Texas. The
releases required by law to be deposited in the Treasury not having been
filed there, the remaining five millions have not been issued. This last
amount of the stock will be withheld from Texas until the conditions upon
which it is to be delivered shall be complied with by the creditors of that
State, unless Congress shall otherwise direct by a modification of the
law.
In my last annual message, to which I respectfully refer, I stated briefly
the reasons which induced me to recommend a modification of the present
tariff by converting the ad valorem into a specific duty wherever the
article imported was of such a character as to permit it, and that such a
discrimination should be made in favor of the industrial pursuits of our
own country as to encourage home production without excluding foreign
competition.
The numerous frauds which continue to be practiced upon the revenue by
false invoices and undervaluations constitute an unanswerable reason for
adopting specific instead of ad valorem duties in all cases where the
nature of the commodity does not forbid it. A striking illustration of
these frauds will be exhibited in the report of the Secretary of the
Treasury, showing the custom-house valuation of articles imported under a
former law, subject to specific duties, when there was no inducement to
undervaluation, and the custom-house valuations of the same articles under
the present system of ad valorem duties, so greatly reduced as to leave no
doubt of the existence of the most flagrant abuses under the existing laws.
This practical evasion of the present law, combined with the languishing
condition of some of the great interests of the country, caused by over
importations and consequent depressed prices, and with the failure in
obtaining a foreign market for our increasing surplus of breadstuffs and
provisions, has induced me again to recommend a modification of the
existing tariff. The report of the Secretary of the Interior, which
accompanies this communication, will present a condensed statement of the
operations of that important Department of the Government.
It will be seen that the cash sales of the public lands exceed those of the
preceding year, and that there is reason to anticipate a still further
increase, notwithstanding the large donations which have been made to many
of the States and the liberal grants to individuals as a reward for
military services. This fact furnishes very gratifying evidence of the
growing wealth and prosperity of our country.
Suitable measures have been adopted for commencing the survey of the public
lands in California and Oregon. Surveying parties have been organized and
some progress has been made in establishing the principal base and meridian
lines. But further legislation and additional appropriations will be
necessary before the proper subdivisions can be made and the general land
system extended over those remote parts of our territory.
On the 3d of March last an act was passed providing for the appointment of
three commissioners to settle private land claims in California. Three
persons were immediately appointed, all of whom, however, declined
accepting the office in consequence of the inadequacy of the compensation.
Others were promptly selected, who for the same reason also declined, and
it was not until late in the season that the services of suitable persons
could be secured. A majority of the commissioners convened in this city on
the 10th of September last, when detailed instructions were given to them
in regard to their duties. Their first meeting for the transaction of
business will be held in San Francisco on the 8th day of the present
month.
I have thought it proper to refer to these facts, not only to explain the
causes of the delay in filling the commission, but to call your attention
to the propriety of increasing the compensation of the commissioners. The
office is one of great labor and responsibility, and the compensation
should be such as to command men of a high order of talents and the most
unquestionable integrity.
The proper disposal of the mineral lands of California is a subject
surrounded by great difficulties. In my last annual message I recommended
the survey and sale of them in small parcels under such restrictions as
would effectually guard against monopoly and speculation; but upon further
information, and in deference to the opinions of persons familiar with the
subject, I am inclined to change that recommendation and to advise that
they be permitted to remain as at present, a common field, open to the
enterprise and industry of all our citizens, until further experience shall
have developed the best policy to be ultimately adopted in regard to them.
It is safer to suffer the inconveniences that now exist for a short period
than by premature legislation to fasten on the country a system founded in
error, which may place the whole subject beyond the future control of
Congress.
The agricultural lands should, however, be surveyed and brought into market
with as little delay as possible, that the titles may become settled and
the inhabitants stimulated to make permanent improvements and enter on the
ordinary pursuits of life. To effect these objects it is desirable that the
necessary provision be made by law for the establishment of land offices in
California and Oregon and for the efficient prosecution of the surveys at
an early day.
Some difficulties have occurred in organizing the Territorial governments
of New Mexico and Utah, and when more accurate information shall be
obtained of the causes a further communication will be made on that
subject.
In my last annual communication to Congress I recommended the establishment
of an agricultural bureau, and I take this occasion again to invoke your
favorable consideration of the subject.
Agriculture may justly be regarded as the great interest of our people.
Four-fifths of our active population are employed in the cultivation of the
soil, and the rapid expansion of our settlements over new territory is
daily adding to the number of those engaged in that vocation. Justice and
sound policy, therefore, alike require that the Government should use all
the means authorized by the Constitution to promote the interests and
welfare of that important class of our fellow-citizens. And yet it is a
singular fact that whilst the manufacturing and commercial interests have
engaged the attention of Congress during a large portion of every session
and our statutes abound in provisions for their protection and
encouragement, little has yet been done directly for the advancement of
agriculture. It is time that this reproach to our legislation should be
removed, and I sincerely hope that the present Congress will not close
their labors without adopting efficient means to supply the omissions of
those who have preceded them.
An agricultural bureau, charged with the duty of collecting and
disseminating correct information as to the best modes of cultivation and
of the most effectual means of preserving and restoring the fertility of
the soil and of procuring and distributing seeds and plants and other
vegetable productions, with instructions in regard to the soil, climate,
and treatment best adapted to their growth, could not fail to be, in the
language of Washington in his last annual message to Congress, a "very
cheap instrument of immense national benefit."