The Sun.
London, England, 1854-12-18 00:00:00

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[PRICE SD.

! object of hie "kit entirely defeated, i.:44d'.71. Id,t
circumstances in which the cm:mender #
'-'•Fane
foiled himself, have been absolute abandonmet:t ote
all
claim of our citizens for indemnification, .and Ob.
missive acquiescence in national indignity. It would
• have encouraged in these lawless men a spirit 01 inso-
lence and rapine most dangerous to the lives and pro-
perty of our citizens at Punta Arenas, and probablq em-
boldened them to grasp at the treasures and valu able
merchandise continually passing over the Nicaragua
route. It certainly would have been most satisfactory
to me if the object of the Cyane's mission could have'
been consummated without any act of public force ; but
tho arrogant contumacy of the offenders rendered it im-
possible to avoid the alternative, either to break up their
establishments, or to leave them impressed with the idea
that they might persevere with impunity in a career of
insolence and plunder.
"This transaction has been the subject of complaint
on the part of some foreign powers, and has been cha-
racterised with more of harshness than of justice. If
comparisons were to be instituted, it would not be diffi-
cult to present repeated instances in the history of
states standing in the very front of modern civilisation
where communities, far less offending and more defence-
less than Greytown, have been chastised with mueh
greater severity, and where not cities only have been
laid in ruins, but human life has been recklessly eacri-
feed, and the blood of the innocent made profusely to
mingle with that of the guilty.
" Passing from foreign to domestic affairs, your at-
tention is naturally directed to the financial condition
of the country, always a subject of general interest. •For
complete and exact information regarding the finances,
and the various kanches of the public service connected
therewith, I refer you to the report of the Secretary of
the Treasury, from which it will appear that the amount
of revenue during the last fiscal year, from all sources,
was 73,549,705 dole. ; and that the public expenditure
for the same period, exclusive of payments on account of
the public debt, amounted to 51,018,249 dole. During
the same period the payments made in redemption of
the public debt, including interest and premium,
amounted to 24,336,380 dols. To the sum total of the
receipts of that year is to be added a balance remaining
in the Treasury at the commencement thereof, amount-
ing to 21,942,892 dols. ; and at the close of the same
year, a corresponding balance—amounting to 20,137,967
dole. of receipts above expenditure—also remained in the
Treasury. Although, in the opinion of the Secretary of
the Treasury the receipts, of the current fiscal year are
not likely to equal in amount those of the last, "yet they
will undoubtedly exceed the amount of expe.nditure by
at least 15,000,000 dole. I shall, therefore, continue
to direct that the surplus revenue be applied—s,-5 far as
it can be judiciously and economically done-4o the
reduction of the public debt, the amount of whieth, at
the commencement of the last fiscal year was 67,340.628
dols. ;of which there had been paid on the 20th d of
November, 1854, the sum of 22,365,172 dole., leaTi,v a
balance of out3tanding public debt of only 44,975,4 56
dole., redeemable at different periods within 14 years.
There are also remnants of other government stocks,
most ef which are -already dne, end on which the interest
has ceased, but which have not yet been presented for pay-
ment, amounting to 233,179 dole. This statement exhi-
bits the fact, that the annual income of the government
greatly exceeds the amount of its public debt, which
latter remains unpaid only because the time of payment
has not yet matured, and it canuot be discharged at
once, e:cept at the option of public creditors, who pre-
fer to retain the securities of the United States ; and the
other fact, not less striking, that the annual revenue
from all sources exceeds, by many millions of dollars,
the rm runt needed for a prudent and economical admi-
nistration cf the government.
" The estimates 'presented to Congress from the iiffe-
rent executive departments, at the last session, amounted
to 38,406,581 dols. ; and the appropriations made to `lie
.d
sum of 53,116,95801 r. Of this excess of appropriaticiA
o er estiiva a;, however, more than 20,000,000 dols.
applicable to extraordinary objects, having no reference.
to the us: a' annual expenditure. Among these objects
, were eminwed 10,000,000 dole. to meet the third article
of the treaty between the United States and Mexico ; so
that, in fact, for objects of extraordinary expenditure the
• appropriations were limited to considerable less than
40,030,000 dole. I, therefore, renew my recommenda-
tion for a reduction of the duties on imports. The re-
port of the Secretary of the Treasury presents a series
• f tables showing the operation of the revenue system
for ,everal successive years, and as the general principle
of reduction of duties, with a view to revenue and not
I protection, may now be regarded as the settled policy
of the country, 1 trust that little difficulty will be en-
countered in settling the details of a measure to that
effect.