Our settlements on the shores of the Pacific have already given a great

extension, and in some respects a new direction, to our commerce in that

ocean. A direct and rapidly increasing intercourse has sprung up with

eastern Asia. The waters of the Northern Pacific, even into the Arctic Sea,

have of late years been frequented by our whalemen. The application of

steam to the general purposes of navigation is becoming daily more common,

and makes it desirable to obtain fuel and other necessary supplies at

convenient points on the route between Asia and our Pacific shores. Our

unfortunate countrymen who from time to time suffer shipwreck on the coasts

of the eastern seas are entitled to protection. Besides these specific

objects, the general prosperity of our States on the Pacific requires that

an attempt should be made to open the opposite regions of Asia to a

mutually beneficial intercourse. It is obvious that this attempt could be

made by no power to so great advantage as by the United States, whose

constitutional system excludes every idea of distant colonial dependencies.

I have accordingly been led to order an appropriate naval force to Japan,

under the command of a discreet and intelligent officer of the highest rank

known to our service. He is instructed to endeavor to obtain from the

Government of that country some relaxation of the inhospitable and

antisocial system which it has pursued for about two centuries. He has been

directed particularly to remonstrate in the strongest language against the

cruel treatment to which our shipwrecked mariners have often been subjected

and to insist that they shall be treated with humanity. He is instructed,

however, at the same time, to give that Government the amplest assurances

that the objects of the United States are such, and such only, as I have

indicated, and that the expedition is friendly and peaceful.

Notwithstanding the jealousy with which the Governments of eastern Asia

regard all overtures from foreigners, I am not without hopes of a

beneficial result of the expedition. Should it be crowned with success, the

advantages will not be confined to the United States, but, as in the case

of China, will be equally enjoyed by all the other maritime powers. I have

much satisfaction in stating that in all the steps preparatory to this

expedition the Government of the United States has been materially aided by

the good offices of the King of the Netherlands, the only European power

having any commercial relations with Japan.

In passing from this survey of our foreign relations, I invite the

attention of Congress to the condition of that Department of the Government

to which this branch of the public business is intrusted. Our intercourse

with foreign powers has of late years greatly increased, both in

consequence of our own growth and the introduction of many new states into

the family of nations. In this way the Department of State has become

overburdened. It has by the recent establishment of the Department of the

Interior been relieved of some portion of the domestic business. If the

residue of the business of that kind--such as the distribution of

Congressional documents, the keeping, publishing, and distribution of the

laws of the United States, the execution of the copyright law, the subject

of reprieves and pardons, and some other subjects relating to interior

administration--should be transferred from the Department of State, it

would unquestionably be for the benefit of the public service. I would also

suggest that the building appropriated to the State Department is not

fireproof; that there is reason to think there are defects in its

construction, and that the archives of the Government in charge of the

Department, with the precious collections of the manuscript papers of

Washington, Jefferson, Hamilton, Madison, and Monroe, are exposed to

destruction by fire. A similar remark may be made of the buildings

appropriated to the War and Navy Departments.

The condition of the Treasury is exhibited in the annual report from that

Department.

The cash receipts into the Treasury for the fiscal year ending the 30th

June last, exclusive of trust funds, were $49,728,386.89, and the

expenditures for the same period, likewise exclusive of trust funds, were

$46,007,896.20, of which $9,455,815.83 was on account of the principal and

interest of the public debt, including the last installment of the

indemnity to Mexico under the treaty of Guadalupe Hidalgo, leaving a

balance of $14,632,136.37 in the Treasury on the 1st day of July last.

Since this latter period further purchases of the principal of the public

debt have been made to the extent of $2,456,547.49, and the surplus in the

Treasury will continue to be applied to that object whenever the stock can

be procured within the limits as to price authorized by law.

The value of foreign merchandise imported during the last fiscal year was

$207,240,101, and the value of domestic productions exported was

$149,861,911, besides $17,204,026 of foreign merchandise exported, making

the aggregate of the entire exports $167,065,937. Exclusive of the above,

there was exported $42,507,285 in specie, and imported from foreign ports

$5,262,643.

In my first annual message to Congress I called your attention to what

seemed to me some defects in the present tariff, and recommended such

modifications as in my judgment were best adapted to remedy its evils and

promote the prosperity of the country. Nothing has since occurred to change

my views on this important question.

Without repeating the arguments contained in my former message in favor of

discriminating protective duties, I deem it my duty to call your attention

to one or two other considerations affecting this subject. The first is the

effect of large importations of foreign goods upon our currency. Most of

the gold of California, as fast as it is coined, finds its way directly to

Europe in payment for goods purchased. In the second place, as our

manufacturing establishments are broken down by competition with

foreigners, the capital invested in them is lost, thousands of honest and

industrious citizens are thrown out of employment, and the farmer, to that

extent, is deprived of a home market for the sale of his surplus produce.

In the third place, the destruction of our manufactures leaves the

foreigner without competition in our market, and he consequently raises the

price of the article sent here for sale, as is now seen in the increased

cost of iron imported from England. The prosperity and wealth of every

nation must depend upon its productive industry. The farmer is stimulated

to exertion by finding a ready market for his surplus products, and

benefited by being able to exchange them without loss of time or expense of

transportation for the manufactures which his comfort or convenience

requires. This is always done to the best advantage where a portion of the

community in which he lives is engaged in other pursuits. But most

manufactures require an amount of capital and a practical skill which can

not be commanded unless they be protected for a time from ruinous

competition from abroad. Hence the necessity of laying those duties upon

imported goods which the Constitution authorizes for revenue in such a

manner as to protect and encourage the labor of our own citizens. Duties,

however, should not be fixed at a rate so high as to exclude the foreign

article, but should be so graduated as to enable the domestic manufacturer

fairly to compete with the foreigner in our own markets, and by this

competition to reduce the price of the manufactured article to the consumer

to the lowest rate at which it can be produced. This policy would place the

mechanic by the side of the farmer, create a mutual interchange of their

respective commodities, and thus stimulate the industry of the whole

country and render us independent of foreign nations for the supplies

required by the habits or necessities of the people.

Another question, wholly independent of protection, presents itself, and

that is, whether the duties levied should be upon the value of the article

at the place of shipment, or, where it is practicable, a specific duty,

graduated according to quantity, as ascertained by weight or measure. All

our duties are at present ad valorem. A certain percentage is levied on the

price of the goods at the port of shipment in a foreign country. Most

commercial nations have found it indispensable, for the purpose of

preventing fraud and perjury, to make the duties specific whenever the

article is of such a uniform value in weight or measure as to justify such

a duty. Legislation should never encourage dishonesty or crime. It is

impossible that the revenue officers at the port where the goods are

entered and the duties paid should know with certainty what they cost in

the foreign country. Yet the law requires that they should levy the duty

according to such cost. They are therefore compelled to resort to very

unsatisfactory evidence to ascertain what that cost was. They take the

invoice of the importer, attested by his oath, as the best evidence of

which the nature of the case admits. But everyone must see that the invoice

may be fabricated and the oath by which it is supported false, by reason of

which the dishonest importer pays a part only of the duties which are paid

by the honest one, and thus indirectly receives from the Treasury of the

United States a reward for his fraud and perjury. The reports of the

Secretary of the Treasury heretofore made on this subject show conclusively

that these frauds have been practiced to a great extent. The tendency is to

destroy that high moral character for which our merchants have long been

distinguished, to defraud the Government of its revenue, to break down the

honest importer by a dishonest competition, and, finally, to transfer the

business of importation to foreign and irresponsible agents, to the great

detriment of our own citizens. I therefore again most earnestly recommend

the adoption of specific duties wherever it is practicable, or a home

valuation, to prevent these frauds.

I would also again call your attention to the fact that the present tariff

in some cases imposes a higher duty upon the raw material imported than

upon the article manufactured from it, the consequence of which is that the

duty operates to the encouragement of the foreigner and the discouragement

of our own citizens.

For full and detailed information in regard to the general condition of our

Indian affairs, I respectfully refer you to the report of the Secretary of

the Interior and the accompanying documents.

The Senate not having thought proper to ratify the treaties which have been

negotiated with the tribes of Indians in California and Oregon, our

relations with them have been left in a very unsatisfactory condition.

In other parts of our territory particular districts of country have been

set apart for the exclusive occupation of the Indians, and their right to

the lands within those limits has been acknowledged and respected. But in

California and Oregon there has been no recognition by the Government of

the exclusive right of the Indians to any part of the country. They are

therefore mere tenants at sufferance, and liable to be driven from place to

place at the pleasure of the whites.

The treaties which have been rejected proposed to remedy this evil by

allotting to the different tribes districts of country suitable to their

habits of life and sufficient for their support. This provision, more than

any other, it is believed, led to their rejection; and as no substitute for

it has been adopted by Congress, it has not been deemed advisable to

attempt to enter into new treaties of a permanent character, although no

effort has been spared by temporary arrangements to preserve friendly

relations with them.

If it be the desire of Congress to remove them from the country altogether,

or to assign to them particular districts more remote from the settlements

of the whites, it will be proper to set apart by law the territory which

they are to occupy and to provide the means necessary for removing them to

it. Justice alike to our own citizens and to the Indians requires the

prompt action of Congress on this subject. The amendments proposed by the

Senate to the treaties which were negotiated with the Sioux Indians of

Minnesota have been submitted to the tribes who were parties to them, and

have received their assent. A large tract of valuable territory has thus

been opened for settlement and cultivation, and all danger of collision

with these powerful and warlike bands has been happily removed.

The removal of the remnant of the tribe of Seminole Indians from Florida

has long been a cherished object of the Government, and it is one to which

my attention has been steadily directed. Admonished by past experience of

the difficulty and cost of the attempt to remove them by military force,

resort has been had to conciliatory measures. By the invitation of the

Commissioner of Indian Affairs, several of the principal chiefs recently

visited Washington, and whilst here acknowledged in writing the obligation

of their tribe to remove with the least possible delay. Late advices from

the special agent of the Government represent that they adhere to their

promise, and that a council of their people has been called to make their

preliminary arrangements. A general emigration may therefore be confidently

expected at an early day.

The report from the General Land Office shows increased activity in its

operations. The survey of the northern boundary of Iowa has been completed

with unexampled dispatch. Within the last year 9,522,953 acres of public

land have been surveyed and 8,032,463 acres brought into market.

Acres In the last fiscal year there were sold 1,553,071 Located with

bounty-land warrants 3,201,314 Located with other certificates 115,682

Making a total of 4,870,067

In addition there were--Reported under swamp-land grants 5,219,188 For

internal improvements, railroads, etc 3,025,920 Making an aggregate of

13,115,175 Being an increase of the amount sold and located under land

warrants of 569,220 acres over the previous year. The whole amount thus

sold, located under land warrants, reported under swamp-land grants, and

selected for internal improvements exceeds that of the previous year by

3,342,372 acres; and the sales would without doubt have been much larger

but for the extensive reservations for railroads in Missouri, Mississippi,

and Alabama.

Acres For the quarter ending 30th September, 1852, there were sold 243,255

Located with bounty-land warrants 1,387,116 Located with other certificates

15,649 Reported under swamp-land grants 2,485,233 Making an aggregate for

the quarter of 4,131,253

Much the larger portion of the labor of arranging and classifying the

returns of the last census has been finished, and it will now devolve upon

Congress to make the necessary provision for the publication of the results

in such form as shall be deemed best. The apportionment of representation

on the basis of the new census has been made by the Secretary of the

Interior in conformity with the provisions of law relating to that subject,

and the recent elections have been made in accordance with it.

I commend to your favorable regard the suggestion contained in the report

of the Secretary of the Interior that provision be made by law for the

publication and distribution, periodically, of an analytical digest of all

the patents which have been or may hereafter be granted for useful

inventions and discoveries, with such descriptions and illustrations as may

be necessary to present an intelligible view of their nature and operation.

The cost of such publication could easily be defrayed out of the patent

fund, and I am persuaded that it could be applied to no object more

acceptable to inventors and beneficial to the public at large.

An appropriation of $100,000 having been made at the last session for the

purchase of a suitable site and for the erection, furnishing, and fitting

up of an asylum for the insane of the District of Columbia and of the Army

and Navy of the United States, the proper measures have been adopted to

carry this beneficent purpose into effect.

By the latest advices from the Mexican boundary commission it appears that

the survey of the river Gila from its continence with the Colorado to its

supposed intersection with the western line of New Mexico has been

completed. The survey of the Rio Grande has also been finished from the

point agreed on by the commissioners as "the point where it strikes the

southern boundary of New Mexico" to a point 135 miles below Eagle Pass,

which is about two-thirds of the distance along the course of the river to

its mouth.

The appropriation which was made at the last session of Congress for the

continuation of the survey is subject to the following proviso: Provided,

That no part of this appropriation shall be used or expended until it shall

be made satisfactorily to appear to the President of the United States that

the southern boundary of New Mexico is not established by the commissioner

and surveyor of the United States farther north of the town called "Paso"

than the same is laid down in Disturnell's map, which is added to the

treaty.

My attention was drawn to this subject by a report from the Department of

the Interior, which reviewed all the facts of the case and submitted for my

decision the question whether under existing circumstances any part of the

appropriation could be lawfully used or expended for the further

prosecution of the work. After a careful consideration of the subject I

came to the conclusion that it could not, and so informed the head of that

Department. Orders were immediately issued by him to the commissioner and

surveyor to make no further requisitions on the Department, as they could

not be paid, and to discontinue all operations on the southern line of New

Mexico. But as the Department had no exact information as to the amount of

provisions and money which remained unexpended in the hands of the

commissioner and surveyor, it was left discretionary with them to continue

the survey down the Rio Grande as far as the means at their disposal would

enable them or at once to disband the commission. A special messenger has

since arrived from the officer in charge of the survey on the river with

information that the funds subject to his control were exhausted and that

the officers and others employed in the service were destitute alike of the

means of prosecuting the work and of returning to their homes.

The object of the proviso was doubtless to arrest the survey of the

southern and western lines of New Mexico, in regard to which different

opinions have been expressed; for it is hardly to be supposed that there

could be any objection to that part of the line which extends along the

channel of the Rio Grande. But the terms of the law are so broad as to

forbid the use of any part of the money for the prosecution of the work, or

even for the payment to the officers and agents of the arrearages of pay

which are justly due to them.

I earnestly invite your prompt attention to this subject, and recommend a

modification of the terms of the proviso, so as to enable the Department to

use as much of the appropriation as will be necessary to discharge the

existing obligations of the Government and to complete the survey of the

Rio Grande to its mouth.

It will also be proper to make further provision by law for the fulfillment

of our treaty with Mexico for running and marking the residue of the

boundary line between the two countries.

Permit me to invite your particular attention to the interests of the

District of Columbia, which are confided by the Constitution to your

peculiar care.

Among the measures which seem to me of the greatest importance to its

prosperity are the introduction of a copious supply of water into the city

of Washington and the construction of suitable bridges across the Potomac

to replace those which were destroyed by high water in the early part of

the present year.

At the last session of Congress an appropriation was made to defray the

cost of the surveys necessary for determining the best means of affording

an unfailing supply of good and wholesome water. Some progress has been

made in the survey, and as soon as it is completed the result will be laid

before you.

Further appropriations will also be necessary for grading and paving the

streets and avenues and inclosing and embellishing the public grounds

within the city of Washington.

I commend all these objects, together with the charitable institutions of

the District, to your favorable regard. Every effort has been made to

protect our frontier and that of the adjoining Mexican States from the

incursions of the Indian tribes. Of about 11,000 men of which the Army is

composed, nearly 8,000 are employed in the defense of the newly acquired

territory (including Texas) and of emigrants proceeding thereto. I am

gratified to say that these efforts have been unusually successful. With

the exception of some partial outbreaks in California and Oregon and

occasional depredations on a portion of the Rio Grande, owing, it is

believed, to the disturbed state of that border region, the inroads of the

Indians have been effectually restrained.

Experience has shown, however, that whenever the two races are brought into

contact collisions will inevitably occur. To prevent these collisions the

United States have generally set apart portions of their territory for the

exclusive occupation of the Indian tribes. A difficulty occurs, however, in

the application of this policy to Texas. By the terms of the compact by

which that State was admitted into the Union she retained the ownership of

all the vacant lands within her limits. The government of that State, it is

understood, has assigned no portion of her territory to the Indians, but as

fast as her settlements advance lays it off into counties and proceeds to

survey and sell it. This policy manifestly tends not only to alarm and

irritate the Indians, but to compel them to resort to plunder for

subsistence. It also deprives this Government of that influence and control

over them without which no durable peace can ever exist between them and

the whites. I trust, therefore, that a due regard for her own interests,

apart from considerations of humanity and justice, will induce that State

to assign a small portion of her vast domain for the provisional occupancy

of the small remnants of tribes within her borders, subject, of course, to

her ownership and eventual jurisdiction. If she should fail to do this, the

fulfillment of our treaty stipulations with Mexico and our duty to the

Indians themselves will, it is feared, become a subject of serious

embarrassment to the Government. It is hoped, however, that a timely and

just provision by Texas may avert this evil.

No appropriations for fortifications were made at the two last sessions of

Congress. The cause of this omission is probably to be found in a growing

belief that the system of fortifications adopted in 1816, and heretofore

acted on, requires revision.

The subject certainly deserves full and careful investigation, but it

should not be delayed longer than can be avoided. In the meantime there are

certain works which have been commenced, some of them nearly completed,

designed to protect our principal seaports from Boston to New Orleans and a

few other important points. In regard to the necessity for these works, it

is believed that little difference of opinion exists among military men. I

therefore recommend that the appropriations necessary to prosecute them be

made.

I invite your attention to the remarks on this subject and on others

connected with his Department contained in the accompanying report of the

Secretary of War.

Measures have been taken to carry into effect the law of the last session

making provision for the improvement of certain rivers and harbors, and it

is believed that the arrangements made for that purpose will combine

efficiency with economy. Owing chiefly to the advanced season when the act

was passed, little has yet been done in regard to many of the works beyond

making the necessary preparations. With respect to a few of the

improvements, the sums already appropriated will suffice to complete them;

but most of them will require additional appropriations. I trust that these

appropriations will be made, and that this wise and beneficent policy, so

auspiciously resumed, will be continued. Great care should be taken,

however, to commence no work which is not of sufficient importance to the

commerce of the country to be viewed as national in its character. But

works which have been commenced should not be discontinued until completed,

as otherwise the sums expended will in most cases be lost.

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