The Sun.
London, England, 1848-12-22 00:00:00

the credit and commerce of so many great and enlightened

stattems of Europe.
It is believed that, looking to the great aggregate of all
our interests, the whole country was never more prosperous
'than at the present period, and never more rapidly advancing
in wealth and population.
Had the disturbances in Europe not occurred, our com-
inane would undoubtedly have been still more extended,
and would have added still more to the national wealth and
public prosperity. But notwithstanding these disturbances,
the operations of the revenue system established by the Tariff
Act of 1846 have been so generally beneficial to the Govern-
ment and the business of the country, that no change in its
provisions is demanded by a wise public policy, and none is
recommended. _ _ _

The operations of the Constitutional Treasury established
by the Act of the 6th of August, 1846, in the receipt, cus-
tody, and disbursement of the public money, have continued
to be successful. Under this system the public finances have
been carried through a foreign war, involving the necessity
of loans and extraordinary expenditures, and requiring dis-
tant transfers and disbursements, without embarrassment,

and no loss has ;Ccurred of any of the public money depo-
sited under its provisions. While it has proved to be safe
and useful to the Government, its effects have been most
beneficial upon the business of the country. Ia the year
1847 there was a revulsion in the business of Great Britain
of great extent and intensity, which was followed by failures
in that kingdom, unprecedented in number and amount of
bases. This is believed to be the first instance when such
disastrous bankruptcies, occurring in a country with which
IvehrAve such extensive commerce, produced little or no in-

jut; ous effect upon our trade or currency.
During the present year nearly the whole continent of
Europe has been convulsed by civil war and revolutions, at-
tended by numerous bankruptcies, by an unprecedented fall
in their public securities, and an almost universal paralysis
of commerce and industry ; and yet, although our trade and
the prices of our products must have been somewhat unfa-
Vourably affected by these causes, we have escaped a revul-
sion, our money market is comparatively easy, and public
and private credit have advanced anti improved.
It is confidently believed that we have been saved from
their effect by the salutary operation of the constitutional_
treasury. It is certain, that if the twenty-four millions of
specie imported into the country during the fiscal year
ending on the 30th of June, 1847, had gone into the banks,
as, to a great extent, it must have done, it would, in the
absence of this system, have been made the basis of aug
mental bank paper issues, probably to an amount not lee;
than sixty or seventy millions of dollars, producing, as an
inevitable consequence of an inflated currency, extravagant
prices for a time, and wild speculation, which must have
been followed, on the reflux to Europe, the succeeding year
of so much of that specie, by the prostration of the business
of the country, the suspension of the banks, and !hest
extensive bankruptcies. Occurring, as this would have
done, at a period when the country was engaged in a
foreign war, when considerable loans of specie were re-
quired for distant disbursements, and -when the banks, the
fiseal agents of the Government, and the depositaries of
its money, were suspended, the public credit must have sunk,
and many millions of dollars, as was the case during the war
of 1812, must have been sacrificed in discounts upon loans,
and upon depreciated paper currency which the Government
would have b,cen compelled to use.
e In my Message of the 6th of July last, transmitting to
Congr-ess the ratified treaty of peace with Mexico, I recom-
mended the adoption of measures for the speedy payment
of the public debt. In reiterating that recommendation, I
refer you to the considerations presented in that message in
its support.
Funded stock of the United States, amounting to about
half a million of dollars, has been purchased, as authorised
by law, since that period, and the public debt has thus been
reduced ; the details of which will be presented in the annual
ifert of the Secretary of the Treasury.
The estimates of expenditure for the next fiscal year will
be ample for all necessary purposes. If the appropriation
bade by Congress shall not exceed the amount estimated,
the means in the treasury will be sufficient to defray all the
expenses of the Government; to pay off the next instalment
of three millions of dollars to Mexico, v;hich will fall due
On the 30th of May next; and still a considerable surplus
Will remain, which should be ".;plied to the further purchase
of the public stock anti ;eduction of the debt. Should en-
larged appron'4
frill be tr; ..siioras be made, the necessary consequence
poeipone the payment of the debt. Though our
dellte as Cattllidtki with most other nations, is small, it is
Inr true ioiicy, and in harmony with the genius of our insti-
.lt:ions, that we should present to the world the rare spectacle
of a great Republic, possessing vast resources and wealth,
wholly exempt from public indebtedness. This would add
still more to our strengh, and give to us a still more com-
manding position among the nations of the earth.
The public expenditure should be economical, and be con-
fined to such necessary objects as are clearly within the
powers of Congress. All such as are not absolutely de-
manded should be postponed, and the payment of the public
debt at the earliest practicable period should be a cardinal
principle of our public policy.
-For the reason assigned in my last annual message, I re-
peat the recommendation that a branch of the Mint of the
United States be established at the city of New York. The
importance of this measure is greatly increased by the acqui-
sition of the rich mines of the precious metals in New Mexico
and California, and especially in the latter.
I repeat the recommendation heretofore made in favour of
the graduation and reduction of the price of such of the pub-
lic lands as have been long offered in the market and have
remained unsold, and in favour of extending the rights of
pre-emption to actual settlers on the unsurveyed as well as
the surveyed lands.

MILITAILT AND NAVAL FORCES.
On the return of peace, our forces were withdrawn from
Mexico, and the volunteers and that portion of the regular
army engaged for the war were disbanded. Orders
have been issued for stationing the forces of our perma-
nent establishment at various positions in our extended
eountry where troops may be required. Owing to the
remoteness of some of these positions, the detachments
ave not yet reached their destination. Notwithstand-
n g the extension of the limits of our country and the
forces required in the new territories, it is confidently be-
lieved that our present military establishment is sufficient
for all exigencies, so long as our peaceful relations remain
undisturbed. Of the amount of military contributions col-

lected in Mexico, the sum of seven hundred and sixty-nine
thousand six hundred and fifty dollars was applied towards
the payment of the first instalment due under the treaty with
Mexico. The further sum of three hundred and forty-six
thousand three hundred and sixty-nine dollars and thirty
cents has been paid into the treasury, and unexpected ba-
lances still remain in the hands of disbursing officers and
those who were engaged in the collection of these moneys.
After the proclamation of peace no further disbursements
were made of any unexpended money arising from this
source. The balances on hand were directed to be paid into
the treasury, and individual claims on the fund will remain
unadjusted until Congress shall authorise their settlement
and payment. These claims are not considerable in amount.
I recommend to your favourable consideration the sugges-
tions of the Secretary of War and the Secretary of the Navy
in regard to legislation on this subject.
Our Indian relations are presented in a most favourable
view in the report from the War Department. The wisdom
of our policy in regard to the tribes within our limits is
clearly manifested by their improved and rapidly improving
condition.
A most important treaty with the Menomonies 'has been
recently negotiated by the Commissioner of Indian Affairs
in person, by which all their land in the state of Wisconsin—
being about four millions of acres—has been ceded to the
United States. This treaty will be submitted to the Senate
for ratification at an early period of your present session.
Within the last four years eight important treaties have
been negotiated with different Indian tribes, and at a cost of
1,342,000 dollars; Indian lands to the amount of more than
18,500,000 acres have been ceded to the United States; and
provision has been made for settling in the country west of
the Mississippi the tribes which occupied the large extent of
the public domain. The title to all the Indian lands within
the several states of our Union, with the exception of a few
small reservations, is now extinguished, and a vast region
opened for settlement and cultivation.
The report cf the Secretary of the Navy gives a satisfac-
tory exhibit of the operations and condition of that branch
of the public service.
A number of small vessels suitable for entering the mouths
Of rivers were judiciously purchased during the war, and
gave great efficiency to the squadron in the Gulf of Mexico.
The number of men in the naval service authorised by law
during the war has been reduced by discharges below the
maximum fixed for the peace establishment. Adequate
squadrons are maintained in the several quarters of the globe
where experience has shown their services may be most use-
fully employed, and the naval service was never in a condi-
tion of higher discipline or greater efficiency.
I invite attention to the recommendation of the Secretary
of the Navy on the subject of the marine corps. The re-
duction of the corps at the head of the war required that
four officers of each of the three lower grades should be
dropped from the rolls. A board of officers made the selec-
tion • and those designated were necessarily dismissed, but
without any alleged fault. I concur in opinion with the
Secretary, that the service would be improved by reducing
the number of landsmen, and increasing the marines. Such
a measure would justify an increase of the number of officers
to the extent of the reduction by dismissal, and still the
corps would have fewer officers than a corresponding number
of men in the army.
The contracts for the transportation of the mail in steam-
ships convertible into war-steamers promise to realise all the
benefits to our commerce and to our navy which were anti-
cipated. The first steamer thus secured to our Govern-
ment was launched in January, 1847. There are now
seven ; and, in another year there will, probably, be not
less than seventeen afloat. While this great national ad-
vantage is secured, our social and commercial intercourse
is increased and promoted with
Germany, Great Britain, and
other parts of Europe, with all the
coast of our continent, especially withcountries on the west
Oregon and Cali-
fornia, and between the northern and southern sections of
be expected
the United States. Considerable revenuefrmoayNew York to
from postages ; but the connected lima
ee,stimated,
Chagres, and thence across the Isthmus to%..re_gon, cannot
fail to exert a beneficial influence, not Door:IA:1re
on the interests of the manufactures,
tion, and currency of the United States. As an impoten-
tnaviga
part of the system, I recommend to your favourable consi-
deration the establishment of the proposed line of steamers
between New Orleans and Vera Cruz. It promises the most
happy results in cementing friendship between the two Re-
publics, and in extending reciprocal benefits to the trade
and manufactures of both.
THE POSTAL ARRANGEMENTS.
The report of the Postmaster-General will make known
to you the operations of that department for the past year.
It is gratifying to find the revenues of the department,
under the rates of postage now established by law, so
rapidly increasing. The gross amount of postages during the
last fiscal year amounted to four million three hundred and
seventy-one thousand and seventy-seven dollars, exceeding
the annual average received for the nine years immediately
preceding the passage of the Act of the 3d of March, 1845, by
the sum of six thousand four hundred and fifty-three dollars,
and exceeding the amount received for the year ending the
80,th of June, 1847, by the sum of four hundred and twenty-
five thousand one hundred and eighty-four dollars.
The expenditure of the year, excluding the sum of ninety-
four thousand six hundred and seventy-two dollars, allowed
by Congress at its last session to individual claimants, and
including the sum of one hnndred thousand five hundred
dollars paid for tht services of the line of steamers between
11 emen and New York, amounted to four million one hun-
dred and ninety-eight thousand eight hundred and forty-five
dollars, which is less than the annual average for the nine
years previous to the Act of 1845, by three hundred thousand
-seven hundred and forty-eight dollars.
The mail routes, on the thirtieth day of June last, were
ore hundred and sixty-three thousand two hundred and
eight miles in extent, being an increase during the last year
of nine thousand three hundred and ninety miles. The mails
were transported over them, during the same time, forty-one
million twelve thousand five hundred and seventy-nine
miles; making an increase of transportation for the year of
two million one hundred and twenty-four thousand six hun-
dred and eighty miles, whilst the expense was less than that
of the previous year by four thousand two hundred and thirty-
five dollars.
The increase in the mail transportation within the last
three years has been five million three hundred and seventy-
eight thousand three hundred and ten miles, whilst the ex-
pellees were reduced four hundred and fifty-six thousand