The Sun.
London, England, 1837-12-26 00:00:00

injured the other powers of the world. The claims of our
citizens upon Peru, Chili, Brazil, the Argentine Republic, the
Governments formed out of the Republics of Columbia and
Mexico, are still pending, although many of them have been
presented for examination more than twenty years. New
Granada, 'Venezuela, and Ecuador have recently formed a
convention for the purpose of ascertaining and adjusting claims
upon the Republic of Columbia, from which it is earnestly
hoped our citizens will, ere long, receive full compensation for
the injuries originally inflicted upon them, and for the delay in
affording it.
An advantageous treaty of commerce has been conclu'led by
the United States with the Peru Bolivian Confederation, which
wants only the ratification of that Government. The progress
of a subsequent negotiation for the settlement of claims upon
Peru, has been unfavourably affected by the war between that
power and Chili, and the Argentine Republic ; and the same
even is also likely to produce delays in the settlement of our
demands on those powers.
The aggravating circumstances connected with our claims
upon Mexico, and a variety of events touching the honour and
integrity of our Government, led my predecessor to make at
the second session of the last Congress, a special recommenda-
tion of the course to be pursued to obtain a speedy and final
satisfaction of the injuries complained of by this Government
and by our citizens. He recommended a final demand of re-
dress, with a contingent authority to the Executive to make
reprisals if that demand should be made in vain. From the
proceedings of Congress on that recommendation it appeared
that the opinion of both branches of the Legislature coincided
with that of the Executive, that any mode of redress known to
the law of nations might justifiably be used. It was obvious
too, that Congress believed with the President that another
demand should be made, in order to give undeniable and satis-
factory proof of our desire to avoid extremities with a neigh-
bouring power, but that there was an indisposition to vest a
discretionary authority in the Executive to take redress, should
it unfortunately be either denied or unreasonably delayed by
the Mexican Government. So soon as the necessary docu-
ments were prepared, after entering upon the duties of my
office, a special messenger was sent to Mexico to make a final
demand of redress, with the documents required by the provi-
sions of our treaty. The demand was made on the 20th of
July last. The reply, which bears date on the 29th of the
same month, contains assurances of a desire on the part of
that Government to give a prompt and explicit answer res-
pecting to each of the complaints, but that the examination of
them would necessarily be deliberate ; that in this examination
it would be guided by the principles of public law and the obli-
gation of treaties ; that nothing should be left undone that
might lead to the most speedy and equitable adjustment of
our demands ; and that its determination in respect to each
case, should be communicated through the Mexican Minister
here.

Since that time, an Envoy Extrac;rdinary and Minister Ple-
nipotentiary has been accredited to this Government by that
of the Mexican Republic. Ho brought with him asssuranccs
of a sincere desire that the pending differences between the
two Governments should be terminated i❑ a manner satisfac-
tory to both. He was received with reciprocal assurances ; and
a hope was entertained that his mission would lead to a speedy,
satisfactory, and final adjustment of all existing subjects of
complaint. A sincere believer in the wisdom of the pacific
policy by which the United States have always been governed
in their intercourse with foreign nations, it was my particular
desire, from the proximity of the Mexican Republic, and well
known occurrences on our frontier, to be instrumental in ob-
viating all existing difficulties with that Government, and in
restoring to the intercourse between the two Republics, that
liberal and friendly character by which they should always be
distinguished.. I regret, therefore, the more deeply to have
found in the recent communications of that Government so

little reason to hope that any future efforts of mine for the ac-
complishment of those desirable objects would he successful.
Although the larger number, and many of them aggravated
cases of personal wrongs have been now for years before the
Mexican Government, and some of the causes of national
complaint, and those of the most offensive character, admitted
of immediate, simple, and satisfactory replies, it is only within
a few days past that any specific communication in answer to
our last demand made five months ago, have been received
from the Mexican Minister. By the report of the Secretary
of State, herewith presented, and the aecompanying docu-
ments, it will be seen, that for not one of our public complaints
has satisfaction bean given or offered; that but one of the
cases of personal wrong has been favourably considered ; and
that but four cases of both descriptions, out of all those formally
presented, and earnestly pressed, have as yet been decided
upon the Mexican Government.
Not perceiving in what manner any of the powers given to
the Executive alone could be farther usefully employed in
bringing this unfortunate controversersy to a satisfactory ter-
mination, the subject was by my predecessor referred to Con-
gress, as one calling for its interposition. In accordance with
the clearly understood wishes of the Legislature, another and
formal demand for satisfaction has been made upon the Mexi-
can Government, with what success the documents now com-
municated will show. On a careful and deliberate examina-
tion of their contents, and considering the spirit manifested
by the Mexican. Government, it has become my painful duty
to return the subject as it now stands to Congress, to whom it
belongs, to decide upon the time, the mode, and the measure
of redress. Whatever may be your decision, it shall be faith-
fully executed, confident that it will be characterised by that
moderation and justice which will, I trust, under all circum-
stances, govern the councils of our country.
The balance in the Treasury on the Ist day of January,
1837, was forty-five millions nine hundred and sixty-eight
thousand five hundred and twenty-three dollars. The receipts
during the present year from all-sources, including the amount
of Treasury notes issued, are estimated at twenty-three mil-
lions four hundred and ninety-nine thousand nine hundred and
eighty-one dollars, constituting an aggregate of sixty-nine
millions four hundred and sixty-eight thousand five hundred
and four dollars. Of th's amount, about thirty-five millions
two hundred and eighty-one thousand three hundred and sixty-
one dollars have been expended at the end of the year on
appropriations made by Congress ' • and the residue, amount-
ing to thirty-four millions one hundred and eighty-seven
thousand one hundred and forty-three dollars, will be the
nominal balance in the Treasury on the first of January next.
But of that sum, only one million eighty-five thousand four
hundred and ninety-eight dollars is considered as immediately
available for, and applicable to, public purposes. Those
portions of it which will be for some time unavailable, consist
chiefly of sums deposited with the States, and due from the
former deposite banks. The details upon this subject will be
found in the annual report of the Secretary of the Treasury.
The amount of Treasury notes, which it will be necess;,ry to
issue during the year on account of those funds being un-
available, will, it is supposed, not exceed four and a half
millions. It seemed proper, in the condition of the country,
to have the estimates on all subjects made as low as prac-
ticable, without prejudice to any public measures. The De-
partments were, therefore, desired to prepare their estimates
accordingly ; and I am happy to find that they have been able
to graduate them on so economical a scale. In the great and
often unexpected fluctuations to which the revenue is sub-
jected, it is not possible to compute the receipts beforehand
with great certainty ; but should they not differassentirdly
from present anticipations, and should the appropriations not
much exceed the estimates, no difficulty seems likely to hap-
pen in defraying the current expenses with promptitude and
fidelity.
Notwithstanding the great embarrassments which have re-
cently occurred in commercial affairs, and the liberal indul-
gence which, in consequence% of those embarrassments, has
been extended to both the merchants and the banks, it is gra-
tifying to be able to anticipate that the Treasury notes, which
have been issued during the present year, will be redeemed,
and that the resources of the Treasury, without any resort to
loans or increased taxes, will prove ample for defraying all
charges imposed on it during 1838.
The report of the Secretary of the Treasury will afford you
a more minute exposition of all matters connected with the
administration of the finances during the current year—a pe-
riod which, for the amount of public moneys disbursed and de-
posited with the states, as well as the financial difficulties en-
countered and overcome nas few parallels in our history.
Your attention was, at the last session, invited to the neces-
sity of additional legislative provisions in roseect to the eel-
lection, safe keeping, and tranfer of the public money. No
law having been then matured, and not understanding the pro-
ceedings of Congress as intended to be final, it becomes my
duty again to bring the subject to your notice.
On that occasion, three modes of performing this branch of
the public service were presented for consideration.—These
were the creation of a national bank ; the revival, with modi-
fications, of the desposite system established by the Act of the
23d June, 1836, permitting the use of the public moneys by
the banks ; and the discontinuance of the use of such institu-
tions for the purposes referred to, with suitable provisions for
their accomplishment through the agency of public officers.
Considering the opinions of both houses of Congress on the
two first propositions as expressed in the negative, in which I
entirely concur, it is unnecessary for me again to recur to them.
In respect to the last, you have had an opportunity since
our adjournment, not only to test still further the expe-
diency of the measure, by the continued practical operation
of such parts of it as are now in force, but also to discover
what should ever be sought for and regarded with the utmost
deference—the opinions and wishes of -the people. The
national will is the supreme law of the Republic, and on all
subjects within the limits of his constitutional powers, should
be faithfully obeyed by the public servant. Since the mea-
sure in question was submitted to your consideration most
of you have enjoyed the advantage of personal communi-
cation with your constituents. For one state only has an
election been held for the Federal Government; but the
early day at which it took place deprives the measure under
consideration of much of the support it might otherwise have
derived from the result.
Local elections for State officers have, however, been held
in several of the States, at which the expediency of the plan
proposed by the Executive has been more or less discussed.
You will, I am confident, yield to their results the respect
due to every expression of the public voice: Desiring, howe-
ver, to arrive at truth and a just view of the subject in all its
bearings, you will at the same time remember that questions
of far deeper and more immediate local interest than the fiscal
plans of the National Treasury, were involved in those elec-
tions. Above all, we cannot overlook the striking fact, that
there were more than one hundred and sixty millions of bank
capital, of which large portions were subject to actual for-
feiture, other large portions upheld only by special and limited
legislative indulgences—and most of it, if not all, to a greater
or less extent, dependent for a continuance of its corporate
existence upon the will of the. State Legislatures to be then
chosen. Apprised of this circumstance, you judge whe-
ther it is not most probable that the peculiar condition of that
vast interest in these respects, the extent to which it has been
spread through all the ramifications of society, its direct con-
nection with the then pending elections, and the feelings it
was calculated to infuse into the canvass, have exercised a far
greater influence over the result, than any which could pos-