The Sun. — London, England, 1847-12-31 00:00:00

i f. AMERICA. THE. PRESIDENT'S MESSAGE. OPENING OF CONGRESS. LIVERPOOL, THURSDAY. We have this day received advices from New York to the 9th instant inclusive, by the packet-ship Ashburton. They contain full accounts of the open ing of the United States Congress, and a copy of the President's Message, which is, as usual, a lengthy document : a very considerable portion is devoted to the state of affairs in Mexico, and the glorious deeds of the army of invasion. The details of Mr. Trist's mission are also given, and the terms on which he was authorised to treat with Mexico. The President recommends the occupation of Mexico until peace is asked—an indemnity for the past, and security fo the future; but it is needless thus to refer to the several topics. 'We subjoin the Message itself, to gether with the latest M2xican and commercial news received. The steam-ship Britannia arrived at Boston on th; Bth, after a passage of 18 days. It is reported sh, was otf Holyhead this afternoon. She will have severs days' later news from New York. THE MESSAGE. FELLOW CITIZENS OF THE SENATE AND Or THE MOUSE OF REPRESENTATIVES,- The annual meeting of Congress is always an in teresting event. The representatives of the State and of the people come fresh from their constituents to take counsel together for th common good. After an existence of near three-fourths of a century as a free and independent republic, the problem no longer remains to be solved, whether man is capable of self government. The success of our admirable system is a conclusive refutation of the theories of those it, gther countries who maintain that " a favoured few" are born to rule, and that the mas► of mankind must be governed by force. Subject to no arbitrary or he reditary authorit3 , the people are the only sovereip, recognisk d by our constitution. Numerous emigrants of every lineage and lan gunge, attracted by the civil and religious free.lon. we enjoy, and by our happy condition annually crow,' to our shores, and transfer their heart, not less than their allegiance, to the country whose domini-in be longs alone to the people. No country has hen so much favoured, or should acknowledge with deeper reverence the manifestation of the Divine protection. An all-wise Creator directed and guarded u, in our infant struggle for freedom, and has constantly watched over oar surprising pro gress, until we have become one of the groat nations of the earth. It is in a country thus favoured, and uncle: Government in which the executive and legislAtiv, branches hold their authority .for limited periods alike from the people, and where all are responsible to their respective constituencies, that it is again no duty to communicate with Congress upon the stab of the Union, and the present condition of public affairs. _ During the past year the most gratifying proofs are presented that our country h:is been blessed with a wide-spread and universal prosperity. There ha. , been no period since the Government was founded, when all the industrial pursuits of our people have been more successful, or when labour in all branches of business has received a fairer or better reward. From our abundance we have been enabled to perform the pleasing duty of furnishing food fur the starving millions of less favoured countries. MEXICO-THE WAR. In the enjoyment of the bounties of Providence ic home, such as have rarely fallen to the lot of people, it is cause of congratulation, that our inter course with all the Powers of the earth, except Mexico, continues to be of an amicable character. It has been our cherished policy to cultivate peace and goodwill with all nations; and this policy has been steadily pursued by me. No change has taken place in our relations with Mexico since the adjournment of the last Congress. The war in which the United States were forced to engage with the Government of that country still continues. I deem it unnecessary, after the full exposition of them contained in my message of the 11th of May, 1246, and in my annual message at the commence meet of the session of Congress in December last, to reiterate the serious causes of complaint which we had against Mexico before she commenced hostilities. CAUSES OF THE WAR. It is sufficient on the present occasion to say that the wanton violation of the rights of person and pro perty of our citizens committed by Mexico, her re peated acts of bad faith, through a long series of years, and her disregard of solemn treaties, stipulating for indemnity to our injured citizens, not only con stituted ample cause of war on our part, but were of such an aggravated character as would have justified us before the whole world in resorting to this extreme remedy. With an anxious desire to avoid a rup ture between the two countries, we forbore for years to assert our clear rights by force, and continued to seek redress for the wrongs we had suffered by ami cable negotiation, in the hope that Mexico might yield to pacific councils and the demands of justice. In this hope we were disappointed : Our minister of peace sent to Mexico was insultingly rejected. The Mexican Government refused even to hear the terms of adjustment which he was authorised to propose ; and, finally, under wholly unjustifiable pretexts, in volved the two countries in war, by invading the territory of the state of Texas, striking the first blow, and shedding the blood of our citizens on our own foil. Though the United States was the aggrieved nation, Mexico commenced the war, and we were compelled, in self-defence, to repel the invader, and to vindicate the national honour and interests by pro secuting it with vigour, until we could obtain a just and honourable peace. On learning that the hostilities had been com menced by 'Mexico, I promptly communicated that fact, accompanied with a succinct statement of our other causes of complaint against Mexico to C )n -gress ; and that body by the Act of the 13th of May, 1846, declared that "by the Act of the Republic o' Mexico, a state of war exists between that Govern ment and the United Stites"—this Act declaring " the war to exist by the Act of the Republic of Mexico," and making provision for its prosecution "to a speedy and successful termination," was passed with great unanimity by Congress, there being but two negative votes in the Senate, and but fourteen in the House of Representatives. The existence of the war having thus been de clared by Congress, it became my duty, under the constitution and the laws, to conduct and prosecute it. This duty has been performed; and though, at every stage of its progress, I have manifested a willingness to terminate it by a just peace, Mexico has refused to adcede to any terms which could he accepted by the United States, consistently with the national honour and interest. OPERATIONS OF THE ARMY, &c. The rapid and brilliant successes of our arms, and the vast extent of the enemy's territory, which had been overrun and conquered, before the close of the last session of Congress, were fully known to that body. Since that time the war had been prosecuted with increased energy, and I am gratified to state, with a success which commands universal admiration. History presents no parallel of so many glorious victories achieved by any nation within so short a Period. Oar army, regulars and volunteers. have covered themselves with imperishable honours. When ever and wherever our forces hive encountered the enemy, though he was in vastly superior numbers, and often entrenched in fortified positions of his own selection, and of great strength, he has been defeated. Too much praise cannot be bestowed upon our officers an dmr, regul ars and volunteers, for their gallantry, discipline, indomit a bl e courage, and perseverance, all seeking the post of danger, id vieing with each other in deeds of noble daring. 'While every patriot's heart must exult, and a just national pride animate every bolo in beholding the high proofs of courage , consummat e m ili tary s kill , ' steady discipline, and humanity to the vanquished enemy, exhibited by our gallant army, th e nation is called to mourn over the loss of many brave officers in ch e a t r t a h i e n i gr and soldiers who have falle n in def ence of their coun try's honour and interests. The braved discharging their fate in a foreign land,' nobly their duty, and with their country s flag waving tri umphantly in the face of the foe. Their patriotic deeds are justly appreciated, and will long be remem bered by their grateful countrymen. The parental care of the Government they loved and served should be extended to their surviving families. Shortly after the adjourrfment of the last session of Congress, the gratifying intelligence was received of the signal victory of Buena Vista, and of the fall of th,s city of Vera Cruz, and with it the strong castle of San Juan de Ulloa, by which it was defended. Believing that after these and other successes, so honourable to our arms, and so disastrous to Mexico, the:period was propitious to afford her another oppor tunity, if she thought proper to embrace it, to enter into negotiations for peace, a Commissioner was ap pointed to proceed to the head-quarters of our army, with full powers to enter upon negotiations, and to conclude a just and honourable treaty of peace. Ile was not directed to make any new overtures 'f peace, but was the bearer of a dispatch from the Secretary of State of the United States to the Minis ter of Foreign Affairs of Mexico, in reply to one received from the later of the 22d of February, 1847, in which the Mexican Government was informed of his appointment, and of his presence at the head quarters of our army, and that he was invested with full power to conclude a definite treaty of peace, when ever the Mexican Government might signify a desire to do so. While I was unwilling to subject the United States to another indignant refusal, I was yet resolved that the evils of the war should not be protracted a day longer than might be rendered ab sulutely necessary by the Mexican Government. Care was taken to give no instructions to the Com missioner which could in any way interfere with our military operations, or relax our energies in the pro secution of the war. He possessed no authority in any manner to control these operations. He was Authorised to exhibit his instructions to the General in command of the army, and in the event of a treaty being concluded and ratified on the part of Mexico, he %5 as directed to give him notice of that fact. On the happening of such contingency, and on receiving notice thereof, the General in command was instructed by the Secretary of War to suspend further active military operations until further orders. These in structions were given with a view to intermit hos tilities, until the treaty thus ratified by Mexico could he transmitted to Washington, and receive the sanction of the Government of the United States. The Commissioner was also direcl - ed, on reaching the army, to deliver to the General in command the dispatch which he bore from the Secretary of State to the Minister of Foreign Affairs of Mexico, and on receiving it, the General was instructed by the Secretary of War to cause it to be transmitted to the Commander of the Mexican forces, with a request that it might be communicated to his Government. The Commissioner did not reach the head-quarters of the army until after another brilliant victory had crowned our arms at Cerro Gordo. The dispatch which he bore from the Secretary of War to the General in command of the army was received by that officer, then at Jalapa, on the 7th day of May, 1847, together with the dispatch from he Secretary of State to the Minister of Foreign Affairs of Mexico, having been transmitted to him from Vera Cruz. The Commissioner arrived at the head-quarters of the army a few days afterwards His presence with the army, and his diplomatic ch aracter, were made known to the Mexican Go• vernment, from Puebla, on the 12th of June, 1847, V the transmission of the dispatch from the Secretary State to the Minister of Foreign Affairs of Mexico. Many week 3 elapsed after its receipt, and no over i.tres were made, nor was any desire expressed by the Mexican Government to enter into negotiations for peace. Our army pursued its march upon the capital, and, its it approached it, was met by formidable resistance. Our forces first encountered the enemy, and achieved signal victories, in the severely contested battles of Contreras and Churubusco. It was not until after rhese actions had resulted in decisive victories, and the capital of the enemy was within our power, that the Mexican Government manifested any disposition to enter into negotiations for peace ; and even then, as events have proved, there is to) much reason to believe they were insincere, and that in agreeing to go through the forms of negotiation, the object was to gain time to strengthen the defences of their capital, and to pre pare for fresh resistance. The General in command of the army deemed it expedient to' suspend hostilities temporarily, by enter ing into an armistice with a view to the opening of negotiations. Commissioners were appointed on the Part of Mexico to meet the Commissioners, on the part of the United States. The result of the conferences which took place between these functionaries of the two Governments was a failure to conclude a treaty of peace. THEORY UPON TREATIES AND INDEM NITIES. The Commissioner of the United States took with him the project of a treaty already prepared, by the terms of which the indemnity required by the United States was a cession of territory. It is well known that the only indemnity which it is in the power of Mexico to make in satisfaction of the just and long-deferred claims of our citizens against her, and the only means by which she can reimburse the United States for the expenses of the war, is a cession to the United States of a portion of her territory. Mexico has no money to pay, and no other means of making the required indemnity. If tine refuse this, we can obtain nothing else. To reject indemnity, by refusing to accept a cession of terri tory, would be to abandon all our just demands, and to wage the war, bearing all its expenses, without a purpose or a definite object. A state of war abrogates treaties previously exist ing between the belligerents, and a treaty of peace puts an end to all claims for indemnity—for tor tuous acts committed, under the authority of one Government against the citizens or subjects of an other, unless they are provided for in its stipulations. A treaty of peace, which would terminate the existing war, without providing for indemnity, would enable Mexico, the acknowledged debtor, and herself the aggressor in the war—to relieve herself from her just liabilities. By such a treaty, our citizens who hold just demands against her, would have no remedy either against Mexico or their own Government. Our duty to these citizens must for ever prevent such a peace, and no treaty which does not provide ample means of discharging these demands can receive my sanction. A treaty of peace should settle all existing differ ences between the two countries. If an adequate cession of territory should be made by such a treaty, the United States should release Mexico from all her liabilities, and assume their payment to our own citizens. If, instead of this the United States were to consent to a treaty by which Mexico should again engage to pay the heavy amount of our indebtedness which a just indemnity to our Government and our citizens would impose on her, it is notorious that she does not possess the means to meet such an un dertaking. From such a treaty no result could be anticipated, but the same irritating disappointments which have heretofore attended the violations of similar treaty stipulations on the part of Mexico. Such a treaty would be but a temporary cessation of hostilities, without the restoration of the friendship and good understanding which should characterise the future intercourse between the two countries. That Congress contemplated the acquisition of ter ritorial indemnity when that body made provision for the prosecution of the war, is obvious. Congress could not have meant—when in May, 1846, they appropriated ten millions of dollars, and authori,ed the President to employ the militia and naval and military forces of the United SVE es, to accept the services of fifty thousand volunteers, to enable him to prosecute the war; and when, at their last session, and after our army had invaded Mexico, they made additional appropriations, and authorised the raising of additional troops for the same purpose—that no indemnity was to be obtained from Mexico at the conclusion of the war; and yet it was certain that, if no Mexican territory was acquired, no indemnity could he obtained. _ _ It is further. manifest that Congress contemplated territorial indemnity, from the fact that, at their last session, an Act was passed, upon the Executive re commendation, appropriating thrill" millions of dol lars with that express object. This appropriation was made " to enable the President to conclude a treaty of peace, limits, and boundaries, with the Republic of Mexico, to be used by him in the event that said treaty, when signed by the authorised agents of the two Governments, and duly ratified by Mexico, shall call for the expenditure of the same, or any part thereof." The object of asking this appropriation was distinctly stated in the several messages on the subject which I communicated to Congress. Similar appro priations, made in 1803 and 1806, which were re ferred to, were intended to be applied in part con sideration for the cession of Louisiana and the Floridas. In like manner it was anticipated that, in settling the terms of " limits and boundaries" with Mexico, a cession of territory, estimated to be of greater value than the amount of our demands against her, might be obtained ; and that the prompt payment of this sum—in part consideration for the territory ceded— on the conclusion of a treaty, and its ratification on her part, might be an inducement with her to make such a cession of territory as would be satisfactory to the United States. And, although the failure to conclude such a treaty has rendered it unnecessary to use any part of the three millions of dollars appro priated by that act, and the entire sum remains in the Treasury, it is still applicable to that object, should the contingency occur making such appli cation proper. The doctrine of no territory is the doctrine of no indemnity ; and, if sactioned, would be a public ac knowledgment that our country was wrong, and that the war declared by Congress, with extraordinary unanimity, was unjust, and should be abandoned; an admission unfounded in fact, and degrading to the national character. The terms of the treaty proposed by the United States were not only just to Mexico, but, considering the character and amount of our claims, the unjusti fiable and unprovoked commencement of hostilities by her, the expenses of the war to which we have been subjected, and the success which has attended our arms, were deemed to be of a most liberal cha racter. TtiE SUN, LONDON, FRIDAY EVENING, NEGOTIATIONS. The Commissioner of the United States way au thorised to agree to the establishment of the Rio Grande as the boundary, from its entrance into the Gulf to its intersection with the southern boundary of New Mexico, in north latitude about 32 degrees, and to obtain a cession to the United States of the provinces of New Mexico and the Californias, and the privilege of the right of way across the isthmus of Tehuantepec. The boundary of the Rio Grande, and the cession to the United States of New Mexico and Upper California, constituted an ultimatum, which our Commissioner was, under no circumstances, to yield. That it might be manifested not only to Mexico, but to all other nations, that the United States were not disposed to take advantage of a feeble power by insisting upon wresting from ber all the other pro vinces, including many of her principal towns and cities, which we had conquered and held in our mili tary occupation, but were willing to conclude a treaty in a spirit of liberality, our Commissioner was autho rised to stipulate for the restoration to Mexico of all our other conquests. As the territory to be acquired by the boundary proposed might be estimated to be of greater value than a fair equivalent for our just demands, our Com missioner was authorised to stipulate for the payment of such additional pecuniary consideration as was deemed reasonable. INADMISSIBILITY OF THE MEXICAN TERMS. The terms of a treaty proposed by the Me.tecan Commissioners were wholly inadmissible. They negociated as if Mexico was the victorious, and not the vanquished party. They must have known that their ultimatum could never be ac cepted. It required the United States to dismem ber Texas, by surrendering to Mexico that part of the territory of that state lying between the Nueces and the Rio Grande, included within her limits by her laws when she was an independent republic, and when she was annexed to the United States and ad mi ted by Congress as one of the states of our Union. It contained no provision for the payment by Mexico of the just claims of our citizens. It required in demnity to Mexican citizens for injuries they may have sustained by our troops in the prosecution of the war. It demanded the right for Mexico to levy and collect the Mexican tariff of duties on goods im ported into her ports while in our military occupation during the war, and the owners of which had paid to officers of the United States the military contribu tions which had been levied upon them ; and it offered to cede to the United States, for a pecuniary consi deration, that part of Upper California lying north of latitude 37 degrees. Such were the unreasonable terms propose i by the Mexican Commissioners. The cession to the United States, by Mexico, of the provinces of New M• xico and the Californias, as proposed by the Commissioner of the United States, it was believed, would be more in accordance with the convenience and interests of both nations, than any other cession of territory which it was probable Mexico would be induced to make. It is manifest to all who have observed the actual condition of the Mexican Government for some years past, and at preient, that if these provinces should he retained by her she could not lung continue to hold and govern them. Mexico is too feeble a power to govern these provinces, lying as they do at a distance of more than 1,000 miles from her capital, and if attempted to be retained by her, they would consti tute but for a short time, even nomitally, a part of her dominions. This would be especially the case with Upper Cali fornia. The sagacity of powerful European nations has long since directed their attention to the commer cial importance of that province, and there can he little doubt that the moment the United States shall relinquish their present occupation of it, and their claim to it as an indemnity, an !effort would be made by some foreign power to possess it, either by con quest or by purchase. If no foreign government should acquire it in either of these modes, an inde pendent revolutionary Government would probably be established by the inhabitants, and such foreigners as may remain in or remove to the country, as soon as it shall be known that the United States have abandoned it. Such a Government would be too feeble long to maintain its separate independent existence, and would finally become annexed to or be a dependent colony of some more powerful state. Should any foreign Government attempt to possess it as a colony, or otherwise to incorporate it with itself, the principle avowed by President Munroe, in 1824, and reaffirmed in my first annual message, that no foreign Power shall, with our consent, be per mitted to plant or establish any new colony or domi nion on any part of the North American continent, must be maintained. In maintaining this principle, and in resisting its invasion by any foreign power, we might be involved in other wars more expensive and more difficult than that in which we are now engaged. The provinces of New Mexico and the Californias are contiguous to the territories of the United States, and if brought under the government of our laws, their resources—mineral, agricultural, manufacturing, and commercial—would soon be developed. Upper California is biunded on the north by our Oregon possessions, and if held by the United States would soon be settled by a hardy, enterprising, and intelligent portion of our population. The Bay of San Francisco and other harbours along the Califor nian coast, would afford shelter for our nary, for our numerous whale ships and other merchant vessels employed in the Pacific Ocean, and would in a short period become the marts of an extensive and profit able commerce with China, and other countries of the East. These advantages, in which the whole commercial world would participate, would at once be secured to the United States by the cession of this territory ; while it is certain that, as long as it remains a part of the Mexican dominions, they can be enjoyed neither by Mexico herself, nor any other nation. New Mexico is a frontier province, and has never been of any considerable value to Mexico. From its locality it is naturally connected with our western settlements. The territorial limits of the state of Texas, too, as defined by her laws, before her admis sion into our union, embrace all that portion of New Mexico lying east of the Rio Grande, while Mexico still claims to hold this territory as a part of her do minions. The adjustment of this question of boundary is important. There is another consideration which induced the be lief that the Mexican Government might even desire to place this province under the protection of the Govern ment of the United States. Numerous bands of fierce and warlike savages wander over it, and upon its borders. Mexico has been, and must continue to be, too feeble to restrain them from committing depredations, robberies, and murders, not only upon the inhabitants of New Mexico itself, but upon those of the other northern states of Mexico. It would be a blessing to all these northern states to have their citizens protected against them by the power of the United States. At this moment many Mexicans, principally females and children, are in captivity among them. If New Mexico were held and governed by the United States, we could effec tually prevent these tribes from committing such outrages, and compel them to relea le these captives, and restore them to their families and friends. In proposing to acquire New Mexico and the Cali fornias, it was known that but an inconsiderable por tion of the Mexican people would be transferred with them, the country embraced within these provinces being chiefly an uninhabited region. FURTHER MILITARY OPERATIONS. These were the leading considerations which in duced me to authorise the terms of peace which were proposed to Mexico. They were rejected, and nego tiations being at an end hostilities were renewed. An assault was made by our gallant army upon the strongly fortified places near the gates of the city of Mexico, and upon the city itself; and after several days of severe conflict the Mexican forces, vastly su perior in number to our own, were driven from the city, and it was occupied by our troops. Immediately after information was received of the unfavourable result of the negotiations, believing that his continued presence with the army could be pro ductive of no good, I determined to recal our Com missioner. A dispatch to this effect was transmitted to him on the 6th of October last. The Mexican Government will be informed of his reeal ; and that in the existing state of ,things, I shall not deem it proper to make any further overtures of peace, but shall be at all times ready to receive and consider any proposals which may be made by Mexico. Since the liberal proposition of the United States was authorised to be made in April last, large ex penditures have been incurred, and the precious blood of many of our patriotic fellow citizens has been shed in the prosecution of the war. This consideration and the obstinate . perseverance of Mexico in protract ing the war, must influence the terms of peace which it may be deemed proper hereafter to accept. Our arms having been everywhere victorious, hav ing subjected to our military occupation a large portion of the enemy's country, including his capital, and negotiations for peace having failed, the impor tant questions arise—in what manner the war ought to be prosecuted ? and what should be our future policy ? I cannot doubt that we should secure and render available the conquests which we have already made : and that, with this view, we should hold and occupy, by our naval and military forces, all the ports, towns, cities, and provinces now in our occu pation, or which may hereafter fall into our pos session; that we should press forward our military operations, and levy such military contributions on the enemy as may, as far as practicable, defray the future expenses of the war. APPROPRIATION DOCTRINES. Had the Government of Mexico acceded to the equitable and liberal terms proposed, that mode of a , !+n•tment would have been preferred. Mexieo having declined tu do this, iatid .to offer any other terms which could be. accepted by the United States, the national honour, no less than the public interests, requires that the war should be prosecu with increased energy and power, until a just and satis- factory peace can be obtained In the mean time, as Mexico refuses all indemnity, we should adopt measures to indemnify ourselves,by appropriating permanently a portion of her territory. Early after the commence ment of the war, New Mexico and the Californias were taken possession of by our forces. Our mili tary and naval commanders were ordered to conquer and hold them, subject to be disposed of by a treaty of peace. These provinces are now in our undisputed occupa tion, and have been so for many months ; all resist ance on the part of Mexico having ceased within their limits, I am satisfied that they should never be sur rendered to Mexico. Should Congress concur with me in this opinion, and that they should be retained by the United States as indemnity, I can perceive no good reason why the civil jurisdiction and laws of the United States should not at once be extended over them. To wait for a treaty of peace, such as we are willing to make, by which our relations towards them would not be changed, cannot be good policy ; whilst our own interest, and that of the people inha biting them, require that a stable, responsible, and free government under our authority should, as soon as possible, be established ' over them. Should Congress, therefore, deter mine to hold these provinces permanently, and that they shall hereafter be considered as constituent parts of our country, the early establishment of terri torial governments over them will be important for the more perfect protection of persons and property ; and I recommend that such territorial governments he established. It will promote peace and tranquillity among the inhabitants, by allaying all apprehension that they may still entertain of being again subjected to the jurisdiction of Mexico. I invite the early and favourable consideration of Congress to this important subject. Besides New Mexico and the Californias, there are other Mexican provinces which have been reduced to our possession by conquest. These other Mexican provinces are now governed by our military and naval commanders, under the general authority which is conferred upon a conqueror by the laws of war. They should continue to be held as a means of coercing Mexico to accede to just terms of peace. Civil as well as military officers are required to con duct such a government. Adequate compensation to be drawn from contributions levied on the enemy should be fixed by law for such officers as may be thus employed; what further provision may become necessary, and what final disposition it may be proper to make of them, must depend on the future progress of the war, and the course which Mexico may think proper hereafter to pursue. With the views I entertain, I cannot favour the policy which has been suggested, either to withdraw our army altogether, or to retire to a de3ignated line, and simply hold and defend it. To withdraw our army altogether from the conquests they have made by deeds of unparalleled bravery, and at the expense of so much blood and treasure, in a just war on our pirt, and one which, by the act of the enemy, we could not honourably have avoided, would be to degrade the nation in its own estimation anck in that of the world. To retire to a line, and simply hold and defend it, would not terminate the war. On the contrary, it would encourage Mexico to persevere, and tend to protract it indefinitely. It is not to be expected that Mexico, after refusing to establish such a line as a permanent boundary, when our victorious army are in possession of her capital, and in the heart of her country, would permit us to hold it without resist ance. That she would continue the war, and in the most harassing and annoying forms, there can be no doubt. A border warfare of the most savage character, extending over a long line, would be incessantly waged. It would require a large army to be kept constantly in the field, stationed at posts and garrisons along such a line, to protect and defend it. The enemy, relieved from the pressure of our arms on his coasts and in the populous parts of the interior, would direct his atten tion to this line, and, selecting an isolated post for attack, would concentrate his forces upon it. This would be a condition of affairs which the Mexicans, pursuing their favourite system of guerilla warfare, would probably prefer to any other. Were we to assume a defensive attitude on such a line, all the ad vantages of such a state of warfare would be on the side of the enemy. We could levy no contributions upon him, or in any other way make him feel the pressure of the war, but must remain inactive and await his approach, being in constant uucertainty at what point on the line, or at what time he might make an assault. He may assemble and organize an over whelming force in the interior on his own side of the line, and concealing his purpose, make a sudden as sault upon some one of our posts, so distant from any other as to prevent the possibility of timely succour or reinforcements; and in this way our gallant army would be exposed to the danger of being cut off in detail ; or if, by their unequalled bravery and prowess everywhere exhibited during this war, they should repulse the enemy, their numbers stationed at any one post may be too small to pursue him. If the enemy be repulsed in one attack, he would have nothing to do but to retreat to his own side of the line, and being in no fear of a pursuing army may reinforce himself at leisure for another attack on the same or some other post. He may, too, cross the line between our . posts, make rapid incursions into the country which we hold, murder the inhabitants, commit depredations on. them, and then retreat to the interior before a sufficient force can be concen trated to pursue him. Such would probably be the harassing character of a mere defensive war on our part. If our forces, when attacked or threatened with attack, be permitted to cross the line, drive back the enemy, and conquer him, this would be again to invade the enemy's country, after having lost all the advantages of the conquests we have already made, by having voluntarily abandoned them. To hold such a line successfully and in security, it is far from being certain that it would not require as large an army as would be necessary to hold all the conquests we have already made, and to continue the prosecution of the war in the heart of the enemy's country. It is also far from being certain that the expenses of the war would be diminished by such a policy. RECOMMENDATION TO PROSECUTE THE WAR. I am persuaded that the best means of vindicating the national honour and interest, and of bringing the war to an honourable close, will be to prosecute it with increased energy and power in the vital parts of the enemy's country. In my annual message to Congress of December last, I declared that "the war has not been waged with a view to conquest ; but having been commenced by Mexico, it has been carried into the enemy's country, and will be vigorously prosecuted there, with a view to obtain an honourable peace, and thereby secure ample indemnity for the expenses of the war, as well as to our much-injured c iti zens , w h o hold large pecuniary demands against Mexico." Sucb, in my judgment, continues to be our true policy—indeed, the only policy which will probably secure a permanent peace. contemplated by me, as an object ha et s never been make a of the e war,to permanent conquest of the republic of Mexico, or to annihilate her separate existence as an independent nation. On the contrary, it has ever been my desire that she should maintain her nationality, and, under a good Government, adapted to her condition, be a free, in- dependent, and prosperous republic. The United States were the first among the nations to recognise her independence, and have always desired to be on terms of amity and good neighbourhood with her. This she would not suffer. By her own conduct we have been compelled to engage in the present war. In its prosecution, we seek not her overthrow as a nation; but, in vindicating our national honour, we seek to obtain redress for the wrongs she has done us, and indemnity for our just demands against her. We demand an honourable peace; and that peace must bring with it indemnity for the past, and security for the future. Hitherto Mexico has refused all accommodation by which such a peace could be ob tained. Whilst our armies have advanced from victory to victory, from the commencement of the war, it has always been with the olive branch of peace in their hands ; and it has been in the power of Mexico, at every step, to arrest hostilities by accepting it. One great obstacle to the attainment of peace has undoubtedly arisen from the fact, that Mexico has been so long held in subjection by one faction or military usurper after another, and such has been the condition of insecurity in which their successive Governments have been placed, that each has been deterred from making peace, lest, for this very cause, a rival faction might expel it from power. Such was the fate of President Herrera's Administration in 1845 for being disposed even to listen to the overtures of the United States to prevent the war, as is fully confirmed by an official correspondence which took place in the month of August last, between him and his Government, a copy of which is herewith commu nicated. For this cause alone the revolution which displaced him from power was set on foot by General Paredes. Such may be the condition of insecurity of the present Government. There can be no doubt that the peaceable and well-disposed inhabitants of Mexico are convinced that it is the true interest of their country to conclude an honourable peace with the United States, but the becoming the victims of some mili t ary apprehensionfac t ion or of usurper may have prevented them from manifesting their feelings by any public act. The removal of any such apprehension would pro bably cause them to speak their sentiments free;y, and to adopt the measures necessary for the restora tion of peace. 'With a people distracted and divided by contending factions, and a Government subject to constant ehaiigts, by successive revulution.i, Lh3 coo tinued successes of our arms may fail to secure a sa tisfactory peace. In ouch event it may become pro per for our commanding generals in the field to give encouragement and assurances of protection to the friends of peace in Mexico in the establishment and maintenance of a free republican Government of their own choice, able and willing to conclude a peace which would be just to them, and secure to us the indemnity we demand. This may become the only mode of obtain ing such a peace. Should such be the result, the war which Mexico has forced upon us would thus be con verted into an enduring blessing to herself. After finding her torn and distressed by factions, and ruled by military usurpers, we should then leave her with a Republican Government, in the enjoyment of real inde pendence and domestic peace and prosperity, perform ing all her relative duties in the great family of nations, and promoting her own happiness by wise laws and their faithful execution. If, after affording this encouragement and protec tion, and after all the perseverance and sincere efforts we have made, from the moment Mexico commenced this war, and prior to that time, to adjust our differ ences with her, we shall ultimately fail, then we shall have exhausted all honourable means in pursuit of peace, and must continue to occupy her country with our troops, taking the full measure of indemnity into our own hands, and must enforce the terms which our honour demands. To act otherwise in the existing state of things in Mexico, and to withdraw our army without a peace, would not only leave all the wrongs of which we com plain unredressed, but would be the signal for new and fierce civil dissensions and new revolutions—all alike hostile to peaceful relations with the United States. Besides, there is danger, if our troops were with drawn before a peace was concluded, that the Mexi can people, wearied with successive revolutions, and deprived of protection for their persons and property, might at length be inclined to yield to foreign influ ence, and to cast themselves into the arms of some European monarch for protection from the anarchy and suffering which would ensue. This, for our own safety, and in pursuance cf our established policy, we should be compelled to resist. We could never con sent that Mexico should be thus converted into a monarchy governed by a foreign prince. Mexico is our near neighbour, and her boundaries are co- terminous with our own through the whole extent across the North American continent, from ocean to ocean. Both politically and commercially we have the deepest interest in her regeneration and prosperity. Indeed, it is impossible that, with any just regard to our own safety, we can ever become in different to her fate. It may be that the Mexican Government and people have misconstrued or misunderstood our forbearance, and our objects, in desiring to conclude an amicable adjustment of the existing differences between the two countries. They may have supposed that we would submit to terms degrading to the natian ; or they may 'have drawn false inferences from the supposed division of opinion in the United States on the subject of the war, and may have calculated to gain much by pro tracting it ; and, indeed, that we might ultimately abandon it altogether, without insisting on any in demnity, territorial or otherwise. Whatever may be the falsi impressions under which they have acted, the adoption and prosecution of the energetic policy proposed must soon undeceive them. In the future prosecution of the war, the enemy must be made to feel its pressure more than they have heretofore done. At its commencement, it was deemed proper to conduct it in a spirit of forbearance and liberality. With this end in view, early measures were adopted to conciliate, as far as a state of war would permit, the mass of the Mexican population; to con vince them that the war was waged not against the peaceful inhabitants of Mexico, but against their faith less Government, which had commenced hostilities; to remove from their minds the false impressions which their designing and interested rulers had artfully at tempted to make that the war on our part was one of co - lquest : that it was a war against their religion and their churches, which were to be desecrated and over thrown ; and that their rights of person and private property would be violated. To remove these false impressions our commanders in the field were directed scrupulously to respect their religion, their churches, and their church property, which were in no manner to be violated; they were directed also to respect the rights of the persons and property of all who should not take up arms against us. Assurances to this effect were given to the Mexican people by Major-General Taylor, in a proclamation issued in pursuance of instructions from the Secre tary -of-War, in the month of June, 1846, and again by Major-General Scott, who acted upon his own convictions of the propriety of issuing it in a pro clamation of the 11th of May, 1847. In this spirit of liberality and conciliation, and with a view to prevent the body of the Mexican population from taking up arms against us, was the war con - ducted on our part. Provisions and other supplies furnished to our army by Mexican citizens were paid for at fair and liberal prices agreed upon by the parties. After the lapse of a few months it became apparent that these assurances and this mild treat • went had failed to produce the desired effect upon the Mexican population. While the war .had been conducted in our part according to the most humane and liberal principles observed by civilized nations, it was waged in a far different spirit on the part of Mexico. Not appreciating our forbearance, the Mexican people generally became hostile to the United States, and availed themselves of every oppor tunity to commit the most savage excesses upon our troops. Large numbers of the population tcok up arms, and, engaging in guerilla warfare, robbed and murdered in the most cruel manner individual sol diers, or small parties, whom accident or other causes had separated from the main body of our army ; bands of guerilleros and robbers infested the roads, harassed our trains, and, whenever it was in their power, cut off our supplies. The Mexicans having thus shown themselves to be wholly incapable of appreciating our forbearance and liberality, it was deemed proper to change the manner of conducting the war, by making them feel its pres sure according to the usages observed under similar circumstances by . all other civilized nations. Accordingly, as early as the 22d of September, 1846, instructions were given by the Secretary of War to Major-General Taylor to "draw supplies" for our army " from the enemy, without paying for them, and to require contributions for its support," if in that way he was satisfied he could " get abundant supplies for his forces." In directing the execution of these instruction, much was necessarily left to the discretion of the commanding officer, who was best acquainted with the circumstances by which he was surrounded, the wants of the army, and the practica bility of enforcing the measure. General Taylor, on the 25th of October, 1846, re plied, from Monterey, that " It would have been im possible hitherto, and is so now, to sustain the army to any extent by forced contributions of money or supplies," For the reasons assigned by him, he did not adopt the policy of his instructions, but declared his readiness to do so, " should the army, in its future operations, reach a portion of the country which may be made to supply the troops with advantage." He continued to pay for the articles of supply which were drawn from the enemy's country. Similar instructions were forwarded to Major-Gen. Scott on the 3d of April, 1847, who replied from Jalapa, on the 20th of May, 1847, that if it be ex pected that " the army is to support itself by forced contributions levied upon the country, we may ruin and exasperate the inhabitants and starve ourselves." The same discretion was given to him that had been to General Taylor in this respect. General Scott, for the reason assigned by him, also continued to pay for the articles of supply for the army which were drawn from the enemy. After the army had reached the heart of the most wealthy portion of Mexico, it was supposed that the obstacles which had before that time prevented it would not be such as to render impracticable the levy of forced contributions for its support; and on the Ist of September, and again on the 6th of October, 1847, the order was repeated in dispatches addressed by the Secretary of War to General Scott, and his attention was again called to the importance of making the enemy bear the burdens of the war by requiring them to furnish the means of supporting our army ; and he was directed to adopt this policy, unless by doing so there was danger of depriving the army of the ne cessary supplies. Copies of these dispatches were forwarded to General Taylor for his government. On the 31st of March last I caused an order to be issued to our military and naval commanders to levy and collect a military contribution upon all vessels and merchandise which might enter any of the ports of Mexico in our military occupation, and to apply such contributions towards defraying the expenses of the war. By virtue of the right of conquest and the laws of war, the conqueror, consulting his own safety and convenience, may either exclude foreign commerce altogether from all such ports, or permit it upon such terms and conditions as he may prescribe. Before the principal ports of Mexico were blockaded by our navy, the revenue derived from import duties, under the laws of Mexico, was paid into the Mexican treasury. After these ports had fallen into our mili tary possession, the blockade was raised, and commerce with them permitted upon prescribed terms and con ditions. They were opened to the trade of all nations upon the payment of duties more moderate in their amount than those which had been previously levied by Mexico; and the revenue, which was formerly paid into the Mexican treasury, was directed to be collected by our military and naval officers, and ap plied to the use of our army and navy. Care was taken that the officers, soldiers, and sailors of our army and navy should be exempted from the opera tions of the order; and as the merchandise imp or t e d upon which the order operated must be consumed by Mexican citizens, the contributions exacted were, in effect, the seizure of the public revenu es of 2,lexico, and the application of them to our own use. In directing this measure, the object was to co m p e l the DECEMBER 31, 6847. enemy to contribute, as far as practicable, towards the expenses of the war. For the amount of contributions which have been levied in this form, I refer you to the accompanying reports of the Secretary of War and of the Secre tary of the Navy, by which it appears that a sum, exceeding half a million of dollars has been collected. This amount would undoubtedly have been much larger but for the difficulty of keeping open commu nications between the coast and the interior, so as to enable the ownets of the merchandise imported to transport and vend it to the inhabitants of the coun try. It is confidently expected that this difficult) , will, to a great extent, be soon removed by our in creased forces, which have been sent to the field. Measures have recently been adopted, by which the internal as well as the external revenues cf Mexico, i❑ all places in our military occupation, will be seized and appropriated to the use of our army and navy. The policy of levying upon the enemy contribu tions in every form, consistently with the laws of nations, which it may be practicable for our military commanders to adopt, should, in my judgment, be rigidly enforced; and orders to this effect have accord ingly been given. By such a policy, at the same tine that our own Treasury will be relieved from a heavy drain, the Mexican people will be made to feel the burdens of the war, and, consulting their own in tereA, may be induced the more readily to require their rulers to accede to a just peace. INCREASE OF THE ARMY. After the adjournment of the last session of Con gress, events transpired in the prosecution of the war which, iu my judgment, required a greater number of troops in the field than had been anticipated. The strength of the army was accordingly increased by " accepting" the services of all the volunteer forces authorised by the Act of the 13th of May, 1846, with out putting a construction on that Act, the correct ness of which was seriously questioned. The volunteer forces now in the field, with those which had been " accepted," to serve for twelve months," and were discharged at the end of their term of service, exhaust the 50,000 men authorised by that Act. Had it been clear that a proper construction of the Act warranted it the services of an additional number would have been called for and accepted ; but doubts existing upon this point, the power was not exercised. It is deemed important that Congress should, at an early period of their session, confer the authority to raise an additional regular force to serve during the war with Mexico, an.i to be discharged upon the conclusion and ratification of a treaty of peace. I invite the attention of Congress to the views pre sented by the Secretary of War in his report upon thit subject. I recommend, also, that authorit;• be given by law to call for and accept the service of an addi tional number of volunteers, to be exercised at such time and to such extent as the energies of the service may require. INTERVENTION OF BRAZIL. In prosecuting the war with Mexico, whilst the utmost care has been taken to avoid every just cause of complaint on the part of neutral nations, and none has been given, liberal privileges have been granted to their commerce in the ports of the enemy in our military occupation. The difficulty with the Brazilian Government, which at one time threatened to interrupt the friendly relations between the two countries, will, I trust, be speedily adjusted. I have received information that an Envoy Extraordinary and Minister Plenipotentiary to the United States will shortly be appointed by his Imperial Majesty ; and it is hoped he will come in structed and p epared to adjust all remaining diffe rences between the two Governments in a manner acceptable and honourable to both. In the mean time, I have every reason to believe that nothing will occur to interrupt our amicable relations with Brazil. It has been my constant effort to maintain and cul tivate the most intimate relations of friendship with all the independent Powers of South America ; and this policy has been attended with the happiest re sults. It is true that the settlement and payment of many just claims of American citizens against these nations have been long delayed. The peculiar posi tion in which they have been placed, and the desire on the part of my predecessors, nt well as myself, to grant them the utmost indulgence, tuwe hitherto pre vented these claims from being urged In a manner demanded by strict justice. The time has arrived when they ought to be finally adjusted mad liquidated, and efforts are now making for that purpose. PERU. It is proper to inform you that the Government of Peru has in good faith paid the first two instalments of the indemnity of 30,000 dollars each, and the greater portion of the interest due thereon, in execu tion of the convention between that Governme-t and the United States, the ratifications of which were exchanged at Lima on the 31st of October, 1846. The Attorney-General of the United States, early in August last, completed the adjudication of the claims under this convention, and made his report thereon in pursuance of the Act of the Bth of August, 1846. The sums to which the claimants are respectively entitled will be paid on demand at the Treasury. CHINA. I invite the early attention of Congress to the pre sent condition of our citizens in China. Under our treaty with that power, American citizens are with drawn from the jurisdiction, whether civil or criminal, of the Chinese Government, and placed under that of our public functionaries in that country. By these alone can our citizens be tried and punished for the commission of any crime ; by these alone can ques tions be decided between them, involving the rights of person and property ; and by these alone can con tracts be enforced into which they may have entered with the citizens or subjects of foreign powers. The merchant vessels of the United States lying in the waters of the five ports of China open to foreign commerce are under the exclusive jurisdiction of officers of their own Government. Until Congress shall establish competent tribunals to try and punish crimes, and to exercise jurisdiction in civil cases in China, American citizens there are subject to no law whatever. Crimes may be committed with impunity, and debts may be contracted with out any means to enforce their payment. Inconve niences have already resulted from the omission of Congress to legislate upon the subject, and still greater are apprehended. The British authorities in China have already complained that this Government has not provided for the punishment of crimes, or the enforcement of contracts against American citizens in that country, whilst their Government has established tribunals by which an American citizen can recover debts due from British subjects. Accustomed as the Chinese are to summary justice, they could not be made to comprehend why criminals who are citizens of the United States should escape with impunity, in violation of treaty obligations, whilst the punishment of a Chinese, who had com mitted any crime against an American citizen, would be rigorously exacted. Indeed, the consequences might be fatal to American citizens in China, should a flagrant crime be committed by any one of them upon a Chinese, and should trial and punishment not follow according to the requisition of the treaty. This might disturb, if not destroy, our friendly relations with that empire, and cause an interruption of our valuable commerce. FOREIGN RELATIONS. Our treaties with the Sublime Porte, Tripoli, Tunis, Morocco, and Muscat, also require the legisla tion of Congress to carry theta into execution, though the necessity for immediate action may not be so urg►ent as in regard to China. The Secretary of State has submitted an estimate to defray the expense of opening diplomatic relations with the Papal States. The interesting political events now in progress in these states, as well as a just regard to our commercial interest, have, in my opinion, rendered such a measures highly expedient. Estimates have also been submitted for the outfits and salaries of charges d'affaires to the republics of Bolivia, Guatemala, and Ecuador. The manifest importance of cultivating the most friendly relations with all the independent states upon this continent has induced me to recommend a ppropriations neces sary for the maintenance of these missions. I recommend to Congress that an appropriation be made, to be paid to the Spanish Government for the purpose of distribution among the claimants in " the Amistad case." I entertain the conviction that this is due to Spain under the treaty of the 20th of Oc tober, 1795 ; and, moreover, that, from the earnest manner in which the claim continues to be urged, so long as it shall remain unsettled it will be a source of irritation and discord between the two countries, which may prove highly prejudicial to the interests of the United States. Good policy, no less than a faithful compliance with our treaty obligations, re quires that the inconsiderable appropriation demanded should be made. FINANCIAL AFFAIRS. A detailed statement of the condition of the finances will be presented in the annual report of the Secre tary of the Treasury. The imports for the last fiscal year, ending on the 30th June, 1847, were of the value of 146,545,638 dolls., of which the amount ex ported was 8,011,158 dolls., leaving 138,534,480 dolls, in the country fur domestic use. The value of the exports for the same period was 158,648,622 dolls., of which 150,637,463 dolls. consisted of do mestic productions, and 8,011,158 dolls. of foreign articles. The receipts into the Treasury for the same period amounted to 26,346,790 dolls. 37c., of which there was derived from customs 23,747,864 dolls. 66c,, and from sales of public lands, 2,498,335 dolls, 20e. ; and from incidental and miscellaneous sources, 100,570 dolls. 51c. The last fiscal year, during which this amount was received, embraced five months under the operation of the Tariff Act of 1842, and seven months during which the Tariff Act of 1846 WU in force. During the five month under the Act of 1842 the amount received from customs was 7,842,306 dolls. 90c. ; and durin4 the seven months under the Act of 1846 the amount received was 15,90.5,557 dolls. 76c. The net revenue from customs during the year ending on the Ist of December, 1846, being the last year under the operation of the Tariff Act of 1842, was 22,971,403 dolls. 10c., and the net revenue from customs during the year ending on the Ist of Decem. der, 1847, being the first year under the operation of the Tariff Act of 1846, was about 31,500,000 dollars, being an increase of revenue for the first year under the Tariff Act of 1846, of more than 8,500,000 dollars over that of the last year under the tariff of 1842. The expenditures during the fiscal year ending on the 30th of June last were 69,451,177 dolls. 65c., of which 3,522,012 dolls. 37e. was on account of pay ment of principal and interest f.)f the public debt, in cluding Treasury notes redeutnei nts2 not funded. The expenditures, exclusive of payment 9f public debt, were 55,929,095 dolls. 23c. It is estimated that the receipts into the Treasury for the fiscal year ending on.the 30th of June, 1845 1 including the balance in the Treasury on the Ist of July last, will amount to 42,886,545 dolls. 80c., of which 31,000,000, it is estimated, will be derived from customs ; 3,500,000 from the sale of the public lands ; 400,000 from incidental sources, including sales made by the Solicitor of the Treasury ; and 6,285,294 dolls. 55c. from loans already authorised by law, which, together with the balance in the Treasury on the Ist of July last, make the sum estimated. The expenditure for the same period, if peace with Mexico shall not be concluded, and the army shall be increased as is proposed, will amount, including the necessary payments on account of the principal and interest of the public debt and Treasury notes, to 58,615,660 dolls. 7c. On the Ist of .the present month, the amount of the public debt actually incurred, including treasury notes, was 45,659,659 dolls. 40c. The public debt due on the 4th of March, 1845, including Treasury notes, was 17,788,799 dolls. 62c.; and consequently, the addition made to the public debt since that time is 27,370,859 dolls. 78c. Of the loan of 23,000,000, authorised by the Act of the 28th of January, 1846, the sum of 5,000,000 was paid out to the public creditors, or exchanged at par for specie ; the remaining 18.000,000 was offered for specie to the highest bidder not below par, by an advertisement issued by the Secretary of the Trea sury, and published from the 9th of February to the 10th of April, 1847, when it was awarded to the several highest bidders, at premiums varying from k per cent. to 2 per cent. above par. The premium has been paid into the Treasury, and the sums awarded deposited in specie in the Treasury as fast as it was required by the wants of the Government. A FURTHER LOAN. To meet the expenditures for the remainder of the present and for the next fiscal year, ending on the 30th of June, 1849, a further loan, in aid of the or dinary revenues of the Government, will be necessary. Retaining a sufficient surplus in the Treasury, the loan required fur the remainder of the present fiscal year will be about 18,500,000 dolls. If the duty on tea and coffee be imposed, and the graduation of the price of public lands shall be made at an early period of your session, as recommended, the loan for the present fiscal year may be reduced to 17,000,000 dolls. The loan may be further reduced by whatever amount of expenditures can be saved by military contribu tions collected in Mexico. The most vigorous mea sures for the augmentation of these contributions have been directed, and a very considerable sum is ex pected from that source. Its amount cannot, how ever, be calculated with any certainty. It is recom mended that the loan to be made be authorised upon the same terms, and for the same time, as that which was authorised under the provisions of the Act of the 28th of January, 1847. AN EXTRA LOAN ! Should the war with Mexico be continued until the 30th of June, 1849, it is estimated that a further loan of 20,d00,000 dolls. will be required for the fiscal year ending on that day, in case no duty be imposed on tea and coffee, and the public lands be not reduced and graduated in price, and no military contributions shall be collected in Mexico. If the duty on tea and coffee be imposed, and the lands be reduced and gra duated in price, as proposed, the loan may be reduced to seventeen millions of dollars, and will be subject to be still further reduced by the amount of the military contributions which may be collected in Mexico. It is not proposed, however, at present, to ask Congress for authority to negotiate this loan for the next fiscal year, as it is hoped that the loan asked for the re mainder of the present fiscal year, aided by military contributions which may be collected in Mexico, may be sufficient. If, contrary to my expectation, there should be a necessity for it, the fact will be commu nicated to Congress in time for their action during the present session. In no event will a sum exceed? ing six millions of dollars of this amount be needed before the meeting of the session of Congress in De. cen4ber, 1848. • THE TARIFF. The Act of the 80th of July, 1846, " reducing the duties on imports," has been in force since the Ist of December last ; and I am gratified to state that all the beneficial effects which were anticipated from its operation have been fully realised. The public re venue derived from customs during the year ending on the Ist of December, 1847, exceeds by more than 8,000,000 dollars the amount received in the preced ing under the operation of the Act of 1842, which was superseded and repealed by it. Its effects are visible in the great and almost unexampled prosperity which prevails in every branch of business. While the repeal of the prohibitory and restrictive duties of the Act of 1842, and the substitution in their place of reasonable revenue rates levied on ar ticles imported; according to their actual value, has increased the revenue and augmented our foreign trade, all the great interests of the country have been advanced and promoted. AGRICULTURE. The great and important interests of agriculture, which had been not only too much neglected, but actually taxed under the protective policy, for the benefit of other interests, have been relieved of the burdens which that policy imposed on them; and our farmers and planters, under a more just and liberal commercial policy, are finding new and profitable markets abroad for their augmented products. Our commerce is rapidly increasing, and is extend.. ing snore widely the circle of international ex changes. Great as has been the increase of our im ports during the past year, our exports of domestic products sold in foreign markets have been still greater. NAVIGATION AND MANUFACTURES. Our navigating interest is eminently prosperous. The number of vessels built in the United States has been greater than during any preceding period of equal length. Large profits have been derived by those who have constructed, as well as by those wh o . have navigated them. Should the ratio of increase m the number of our merchant vessels be progressive, and be as great for the future as during the past year, the time is not distant when our tonnage and com mercial marine will be larger than that of any other nation in the world. Whilst the interests of agriculture, of commerce, and of navigation have been enlarged and invigo rated, it is highly gratifying to observe that our manufactures are also in a prosperous condition. None of the ruinous effects upon this interest which were apprehended by some, as the result of the operation of the revenue system established by the Act of 1846, have been experienced. On the con trary, the number of manufactories, and the amount of capital invested in them, is steadily and rapidly increasing, affording gratifying proofs that American enterprise and skill employed in this branch of do mestic industry, with no other advantages than those fairly and incidentally accruing from a just system of revenue duties, are abundantly able to meet success fully all competition from abroad, and still derive fair and remunerating profits. While capital invested in manufactures is yielding alequate and fair profits under the new system, the wages of labour whether employed in manufactures, agriculture, commerce, and naviga tion—have been augmented. The toiling millions, whose daily labour furnishes the supply of food and raiment, and all the necessaries and comforts of life, are receiving higher wages and more steady and per manent employment than in any other country, or at any previous period of our history. So successful have been all branches of our industry that a foreign war, which generally diminishes the resources of a nation, has in no essential degree re tarded our onward progress or checked our general prosperity. With such gratifying evidences of prosperity and of the successful operation of the revenue Act of 1846 every consideration of public policy recommends that it shall remain unchanged. It is hoped that the system of import duties which it established may be regarded as the permanent policy of the country, and that the great interests affected by it may not again be subject, to be injuriously disturbed, as they have heretofore been, by frequent and sometimes sudden changes. PROPOSAL OF TEA AND COFFEE DUTIES. For the purpose of increasing the revenue, and without changing or modifying the rates imposed by the Act of 1846, on the dutiable articles embraced by ifs provisions, I again recommend to your favourable consideration the expediency of levying a revenue duty on tea and coffee. The policy which exempted these articles from duty during peace, and when the