The Sun.
London, England, 1844-12-31 00:00:00

TBE SUN, LONDON, TUESDAY MORNING, DECEMBER 31, 1844

IMPORTANT NEWS

The great, experiment of a political confederacy—each
member of which is supreme as to all matters apper-
taining to its local interests, and its internal peace and
happiness—while by a voluntary compact with others,
it confides to the united power of all the protection of
its citizens, in matters not domestic, has been so far
crowned with complete success. The world has wit-
nessed its rapid growth in wealth and population ; and,
under the guide and direction of superintending Provi-
dence, the developments of the past may be regarded
but as the shadowing forth of the mighty future. In
the bright prospects of that future we shall find, as pa-
triots and philosophers, the highest inducements to cul-
tivate and cherish a love of union, and to frown every
measure of effort which may be made to alienate the
States, or the people of the States, in sentiment and
feeling, from each other. A rigid and close adherence
to the terms of our political compact, and, above all, a
sacred observance of the guarantees of the Constitution,
will preserve union on a foundation which cannot be
shaken, while personal liberty is placed beyond hazard
or jeopardy.
The guarantee of religious freedom, of the freedom of
the pre,s, of the liberty of speech, of the trial by jury,
of the habeas corpus, and of the domestic institutions of
each of the States—leaving the private citizen in the full
exercise of the high and ennobling attributes of his na-
ture, and to each State the privilege which can only be
judiciously exerted by itself, of consulting the means
best calculated to advance its own happiness ; these are
the great and important guarantees of the Constitution,
which the lovers of liberty must cherish and the advo-
cates of the union must ever cultivate. Preserving these,
and avoiding all interpolations by forced construction,
under the guise of an imagined expediency, upon the
Constitution, the influence of our political system is des-
tined to be as actively and as beneficially felt on the dis-
tant shores of the Pacific as it is now on those of the
Atlantic Ocean. The only formidable impediments in
the way of its successful expansion (time and space)
are so far in the progress of modification, by the im-
provements of the age, as to render no longer specula-
tive the ability of representatives from that remote re-
gion to come up to the capitol, so that their consti.
tuents shall participate in all the benefits of federal
legislation. Thus it is that in the progress of
time, the inestimable princip!es of civil liberty
will be enjoyed by millions yet unborn, and the
great benefits of our system of Government be ex-
tended to now distant and uninhabited regions. In
view of the vast wilderness yet to be reclaimed, we may
well invite the lover of freedom, of every land, to take
up his abode among us, and to assist us in the great
work of advancing the standard of civilisation, and
giving a wider spread to the arts and refinements of cul-
tivated life. Our prayers should evermore be offered up
to the Father of the Universe for his wisdom to direct
us in the path of our duty, so as to enable us to consum-
mate these high purposes.
One of the strongest objections which has been
urged against confederacies, by writers on Government,
is the liability of the members to be tampered with by
foreign Governments, or the people of foreign States,
either in their local affairs, or in such as affected the
peace of others, or endangered the safety of the whole
confederacy. We cannot hope to be entirely exempt
from such attemptsjon our peace and safety. The United
States are becoming too important in population and re-
sources not to attract the observation of other nations.
It therefore may, in the progress of time, occur that
opinions entirely abstract in the States in which they
may prevail, and in no degree affecting their domestic
institutions, may be artfully, but secretly, ,encouraged,
with a view to undermine the Union. Such opinions
may become the foundations of political parties, until at
last the conflict of opinion, producing an alienation of
friendly feeling among the people of the different States,
may involve in one general destruction the happy insti-
tutions under which we live. It should ever be borne in
mind, that what is true in regard to individuals, is
equally so in regard to States. An interference of one
in the affairs of another is the fruitful source of family
dissensions and neighbourhood disputes ; and the same
cause affects the peace, happiness, and prosperity of
States. It may be most devoutly hoped that the good
sense of the American people will ever be ready to repel
all such attempts, should they ever be made. _

all duty under the act of Congress, commonly known as
the Compromise law, and but few of which were pro-
duced in the United States, was stipulated for on our
part. This treaty was communicated to the Senate at
an early day of its last session, but not acted upon till
near its close ; when, for the want, as lam bound to
presume, of full time to consider it, it was laid upon the
table. This procedure had the effect of virtually re-
jecting it, in consequence of a stipulation contained in
the treaty, that its ratifications should be exchanged on
or before a day which has already passed. The Execu-
tive, acting apon the fair inference that the Senate d,d
not intend its absolute rejection, gave instructions to
our Minister at Berli❑ to re-open the negotiation, so far
as to obtain an extension of time for the exchange of
ratifications. I regret, however, to say that his efforts
in this respect have been unsuccessful. I am, neverthe-
less, not without hope that the great advantages which
were intended to be secured by the treaty may yet be
realised.

lam happy to inform you that Belgium has, by as
" arrdte Royal," issued in July last, assimilated the flag
of the United States to her own, so far as the direct trade
betA een the two countries is concerneJ. This measure
will prove of great service to our shipping interest ; the
trade having heretofore been carried on chiefly in fo-
reign bottoms. I flatter myself that she will speedily
resort to a modification of her system relating to the
tobacco trade, which would decidedly benefit the agri-
culture of the United States, and operate to the mutual
advantage of both countries. -
No definitive intelligence has yet been -received from
our Minister of the conclusion of a treaty with the
Chinese empire ; but enough is known to induce the
strongest hopes that the mission will be crowned with
success.

With Brazil our relations continue on the most
friendly footing. The commercial intercourse between
that growing empire and the United States is becoming
daily of greater importance to both ; and it is the inte-
rest of both that the firmest relations of amity and good
will should continue to be cultivated between them.

The Republic of New Grenada still withholds, not-
withstanding the most persevering efforts have been em-
ployed by our Charg6 d'Affaires, Mr. Blackford, to pro-
duce a different result, indemnity in the case of the brig
Morris. And the Congress of Venezuela, although an
arrangement has been effected between cur Minister and
the Minister of Foreign Affaxs of that Government, for
the payment of 18,000 dollars in discharge of its liabili-
ties in the same case, has altogether neglected to make
provision for its payment. It is to be hoped that a sense
of justice will soon induce a settlement of these claims.
Our late Minister to Chili, Mr. Pendleton, has returned
to the United States without having effected an adjust-
ment in the second claim of the Macedonian, which is
delayed on grounds altogether frivolous and untenable.
Mr. Pendleton's successor has been directed to urge the
claim in the strongest terms; and in the event of a failure
to obtain a permanent adjustment, to report the fact
to the Executive at as early a day as possible, se that the
whole matter may be communicated to Congress.
At your last session, I submitted to the attention of
Congress the Convention with the Republic of Peru, of
the 17th of March, 1841, providing for the adjustment
of the claims of the citizens of the United States against
that Republic ; but no definitive action was taken upon
the subject. I again invite it to your attention and prompt
action.

In my last annual message I felt it to be my duty to
make known to Congress, in terms both plain and em-
phatic, my opinion in regard to the war which has so
long existed between Mexico and Texas ; which, since
the battle of San Jacinto, has consisted altogether of
predatory incursions, attended by circumstances revolt-
ing to humanity. I repeat now what I then said, that
after eight years of feeble and ineffectual efforts to
recover Texas, it was time that the war should have
ceased. The United States had a direct interest in the
question. The contiguity of the two nations to our ter-
ritory was but too well calculated to involve our peace.
Unjust suspicions were engendered in the mind of one or
the other of the belligerents against us ; and, as a neces-
sary consequence, American interests were made to
suffer, and our peace became daily endangered. In ad-
dition to which, it must have been obvious to all that the
exhaustion produced by the war subjected both Mexico
and Texas to the interference of other Powers, which,
without the interposition of this Government, might
eventuate in the most serious injury to the United
States. The Government from time to time exerted its
friendly offices to bring about a termination of hostilities
upon terms honourable alike to both the belligerents—
its efforts in this behalf proved unavailing. Mexico
seemed, almost without an object, to persevere in the
war, and no other alternative was left the Executive, but
to take advantage of the well-known dispositions of
Texas, and to invite her to enter into a:treaty for annex-
ing her territory to that of the United States.
Siuce your last session Mexico has threatened to
renew the war, and has either made, or proposes to make,
formidable preparations for Texas. She has issued de-
crees and proclamations,:preparatory to the commence-
ment of hostilities, full of threats revolting to humanity,
and which, if carried into effect, would arouse the at-
tention of all Christendom. This new demonstration
of feeling, there is too much reason to believe, has
been produced in consequence of the negotiation of
the late treaty of annexation with Texas. The
Executive, therefore, could not be indifferent to such
proceedings, and it felt it to be due, as well to itself as to
the honour of the country, that a strong representation
should be made to the Mexican Government upon the
subject. This was accordingly done, as will be seen by
the copy of the accompanying dispatch from the Secre-
tary of State to the United States Envoy at Mexico.
Mexico has no right to jeopardise the pease of the world
by urging any longer a useless and fruitless contest. Such
a condition of things would not be tolerated on the Eu-
ropean continent. Why should it be on this ? A war of
desolation, such as is now threatened by Mexico, cannot
be waged without involving our peace and tranquillity.
It is idle to believe that such a war could be looked upon
with indifference by our own citizens, inhabiting adjoin-
ing States ; and our neutrality would be violated in spite
of all efforts on the part of the Government to prevent it.
The country is settled by emigrants from the United
States, under invitations held out to them by Spain and
Mexico. Those emigrants have left behind them friends
and relatives who would not fail to sympathise with
them in their difficulties, and who would be led by those
sympathies to participate in their struggles, however
energetic the action of Government to prevent it. Nor
would the numerous and forminable bands of Indians,
the most warlike to be found in any land, which occupy
the extensive regions contiguous to the states of Arkansas
and Missouri, and who are in possession of large tracts
of country within the limits of Texas, be likely to re-
main passive. The inclination of these numerous tribes
lead them invariably to war whenever pretexts exist.
Mexico had no just ground of displeasure against this
Government or people for negotiating the treaty. What
interest of hers was affected by the treaty ? She was
despoiled of nothing, since Texas was for ever lost to her.
The independence of Texas was recognised by several of
the leading Powers of the earth. She was free to treat—
free to adopt her own line of policy—free to take the
course which she believed was best calculated to secure
her happiness. Her Government and people decided on
annexation to the United States ; and the Executive
saw, in the acquisition of such a territory, the means of
advancing their permanent happiness and glory. What
principle of good faith then was violated ?—what rule of
political morals trampled under foot? So far as Mexico
herself was concerned, the measure should have been re-
garded by her as highly beneficial. Her inability to re-
conquer Texas has been exhibited, I repeat, by eight—
now nine—years of fruitless and ruinous contest. In the
mean time Texas has been growing in population and
resources. Emigration has flowed into her territory
from all parts of the world, in a current which continues
to increase in strength. Mexico requires a permanent
boundary between that young republic and herself.
Texas, at no distant day, if she continues separate and
detached from the United States, will inevitably seek to
consolidate her strength by adding to her domain in the
contiguous provinces of Mexico. The spirit of revolt
from the control of the Central Government has, there-
fore, manifested itself in some of those provinces ; and it
is fair to infer that they would be inclined to take the
first favourable opportunity to proclaim their inde-
pendence, and to form close alliances with Texas. The
war would thus be endless, or, if cessations of hostilities
should occur, they would only endure for a season.
The interests of Mexico, therefore, could in nothing
be better consulted than in a peace with her neighbours,
which would result in the establishment of a permanent
boundary. Upon the ratification of the treaty, the Exe-
cutive was prepared to treat with her on the most liberal
basis. Hence the boundaries of Texas were left un-
defined by the treaty. The Executive proposed to settle
these upon terms that all the world should have pro-
nounced just and reasonable. No negotiation upon that
point could have been undertaken between the United
States and Mexico in advance of the ratification
of the treaty. We should have had no right—no
power—no authority, to have conducted such a
negotiation ; and to have undertaken it would have
been an assumption equally revolting to the
pride of Mexico and Texas, and subjecting us
to the charge of arrogance ; while to have proposed,
in advance of annexation, to satisfy Mexico for
any contingent interest she might have in Texas would
have been to have treated Texas, not as an independent
power, but as a mere dependency of Mexico. This as-
sumption could not have been acted on by the Executive,
without setting at defiance your own solemn declaration
that the Republic was an independent State. Mexico
had, it is true, threatened war against the United States
in the event the treaty of annexation was ratified. The
Executive could not permit itself to be influenced by
this threat. It represented in this the spirit of our
people, who are ready. to sacrifice much for peace, but
nothing to intimidation. A war, under any circum-
stances, is greatly to be deplored, and the United States
is the last nation to desire it ; but if, as the condition of
peace, it be required of us to forego the unquestionable
right of treating with an independent power, of our own
continent, upon matters highly interesting to both, and
that upon a naked and unsustained pretension of claim
by a third power, to control the free will of the power
with whom we treat—devoted as we may be to peace,
and anxious to cultivate friendly relations with the whole
world, the Executive does not hesitate to say that the
people of the United States would be willing to brave all
consequences sooner than submit to such conditions.
But no apprehension of war was entertained by the Ex-
ecutive ; and I must frankly confess the opinion, that
had the treaty been ratified by the Senate, it would have
been followed by a prompt settlement, to the entire satis-
faction of Mexico, of every matter in difference between
the two countries. Seeing, then, that new preparations
for hostile invasion of Texas were about to be adopted by
Mexico, and that these were brought about because
Texas had adopted the suggestion of the Executive upon
the subject of annexation, it could not passively have
folded its arms and permitted a war, threatened to be
accompanied by every act that could mark a barbarous
age, to be waged against her, because she had done so.
Other considerations of a controlling character in-
fluenced the course of the Executive. The treaty which
had thus been negotiated had failed to receive the rati-

There has Been no material change in our foreign re-
lations since my last annual Message to Congress.
With all the powers of Europe we continue on the most
friendly terms. Indeed, it affords me much satisfaction
to state, that at no former period has the peace of that
enlightened and important quarter of the globe ever been,
apparently, more firmly established. The conviction that
peace is the true policy of nations would seem to be
growing and becoming deeper among the enlightened
every where ; and there is no people who have a stronger
interest in cherishing the sentiments, and adopting the
means of preserving and giving it permanence, than
those of the United States. Amongst these, the first
and most effective are, no doubt, the strict observance of
justice, and the honest and punctual fulfilment of all
engagements. But it is not to be forgotten that, in the
present state of the world, it is no less necessary to be
ready to enforce their observance and fulfilment, in re-
ference to ourselves, than to observe and falfil them, on
our part, in regard to others.
Since the close of your last session, a negotiation has
been formally entered upon between the Secretary of
State and her Britannic Majesty's Minister Plenipoten-
tiary and Envoy Extraordinary residing at Washington,
relative to the rights of their respective nations in and
over the Oregon territory. That negotiation is still
pending. Should it, during your session, be brought to
a definite conclusion, the result will be promptly com-
municated to Congress. I would, however, call your
attention again to the recommendation contained in pre-
vious messages, designed to protect and facilitate emi-
gration to that territory. The establishment of military
posts at suitable points upon the extended line of land
travel, would enable our citizens to migrate in compara-
tive safe ty to the fertile regions below the falls of the Co-
lumbia, and make the provision of the existing convention
for the joint occupation of the territory by subjects of Great
Britain and the citizens of the United States, more avail-
able than heretofore to the latter. These posts would
continue places of rest for the weary emigrant, where he
would be sheltered securely against the danger of attack
from the Indians, and be enabled to recover from the
exhaustion of a long line of travel. Legislative enact-
ments should also be made which should spread over him
the aegis of our laws, so as to afford protection to his
person and property when he shall have reached his dis-
tant home. In this latter respect, the British Govern-
ment has been much more careful of the interests of such
of her people as are to be found in that country than the
United States. She has made necessary provision for
their security and protection against the acts of the
viciously disposed and lawless ; and her emigrant re-
poses in safety under the panoply of her laws. What-
ever may be the result of the pending negotiation, such
measures are necessary. It will afford me the greatest
pleasure to witness a happy and favourable termination
to the existing negotiation, upon terms compatible with
the public honour ; and the best efforts of the Govern-
ment will continue to be directed to this end.

It would give me the highest gratification in this my
last annual communication to Congress, to have been
able to announce to you the complete and entire settle-
ment and adjustment of other matters in difference be-
tween the United States and the Government of her
Britannic Majesty, which were adverted to in a previous
message. It is so obviously the interest of both coun-
tries, in respect to the large and valuable commerce
which exists between them, that all causes of complaint,
however inconsiderable, should be, with the greatest
promptitude, removed, that it must be regarded as cause
of regret that any unnecessary delays should be per-
mitted to intervene. It is true, that, in a pecuniary point
of view, the matters alluded to are altogether insigni-
ficant in amount, when compared with the ample re-
sources of that great nation ; but they, nevertheless—
more particularly that limited class which arise under
seizures and detentions of American ships on the coast of
Africa, upon the mistaken supposition indulged in at the
time the wrong was committed, of their being engaged
in the slave trade—deeply affect the sensibilities of this
Government and people. Great Britain having recog-
nised her responsibility to repair all such wrongs, by her
action in other cases, leaves nothing to be regretted upon
this subject, as to all cases prior to the treat) of Wash-
ington, than the delay in making suitable reparation in
such of them as fall plainly within the principle of others,
which she has lung since adjusted. The injury inflicted
by delays in the settlement of these claims falls with
severity upon the individual claimants, and makes a
strong appeal to her magnanimity and sense of justice
for a speedy settlement. Other matters, arising out of
the construction of existing treaties, also remain unad-
justed, and will continue to be urged upon her attention.
The labours of the joint committee appointed by the
two Governments to run the dividing line, established by
the treaty of Washington, were, unfortunately, much
delayed in the commencement of the season, by the
failure of Congress at the last session, to make a timely
appropriation of hinds to meet the expenses of the Ame-
rican party, and by other causes. The United Status
Commissioner, however, expresses his expectation that,
by increased diligence and energy, the party will be able
to make up for lost time.
We continue to receive assurances of the most friendly
feelings on the part of all the other European powers,
with each and all of whom it is so obviously our interest
to cultivate the most amicable relations. Nor can I an-
ticipate the occurrence of any event which would be
likely in any degree to disturb those relations. Russia,
the great northern power, under the judicious sway of
her Emperor, is constantly advancing in the road of
science and improvement ; while France, guided by the
councils of her wise sovereign, pursues a course calcu-
lated to consolidate the general peace. Spain has ob-
tained a breathing spell of some duration from the in-
ternal convulsions which have, through so many years,
marred her prosperity ; while Austria, the Netherlands,
Prussia, Belgium, and the other powers of Europe, reap
a rich harvest of blessings from the prevailing peace.
I informed the two Houses of Congress, in my
message of December last, that instructions had been
given to Mr. Wheaton, our Minister at Berlin, to nego-
tiate a treaty with the Germanic States composing the
Zollverein, if it could be done, stipulating, as far as it
was practicable to accomplish it, for a reduction of the
heavy and onerous duties levied on our tobacco, and
other leading articles of agricultural production ; and
yielding in return, on our part, a reduction of duties on
such articles, the production of their industry, as should
not come into competition, or but a limited one, with
articles the product of our manufacturing industry.
The Executive, in giving such instructions, con-
sidered itself as acting in strict conformity with the
wishes of Congress, as made known through several mea-
sures which it had adopted, all directed to the accom-
plishment of this important result. The treaty was,
therefore, negotiated ; by which essential reductions
were secured in the duties levied by the Zollverein on
tobacco, rite and lard, accompanied by a stipulation for
the admission of raw cotton, free of duty. In exchange
for which highly important concessions, a reduction of
duties, imposed by the laws of the United States on a
ariety of articles, most of which were admitted free of

fication of the Senate. One of the chief objections which
were urged against it was found to exist in the fact that
the question of annexation had not been submitted to the
ordeal of public opinion in the United States. However
untenable such an objection was esteemed to be, in view
of the unquestionable power of the Executive to tlege-
tiate the treaty, and the great and lasting interests in-
volved in tee question, I felt it to be my duty to submit
the whole subject to Congress as the best expounders of
popular sentiment. No definite action having been
taken on the sul:jeet by Congress, the question referred
itself directly to the decision of the States and the people.
The great popular election which has just terminated,
afforded the best opportunity of ascertaining the will of
the States and p-ople upon it. Pending that issue, it
became the imperative duty of the Executive to inform
Mexico that the question of annexation was still before
the American people, and that, until their decieiort was
pronounced, any serious invasion of Texas would be re-
garded as an attempt to forestall their judgment, and
ceuld not be looked upon with indifference. lam most
happy to inform you that no such invasion as taken
place, and I trust that, whatever your action may be
upon it, Mexico will see the importance of deciding the
matter by a resort to peaceful expedients in preference to
those of arms. The decision of the people and the States
on this great and interesting subject has been decisively
manifested. The question of annexation has been pre-
sented nakedly to their consideration. By the treaty itself
all collateral and incidental issues, which were calculated
to divide and distract the public councils, were carefully
avoided. These were left to the wisdom of the future
to determine. It presented, I repeat, the isolated question
of annexation; and in that form it has been submitted
to the ordeal of public sentiment. A controlling majority
of the people, and a large majority of the States, have
declared in favour of immediate annexation. Instruc-
tions have thus come up to both branches of Congress,
from their respective constituents, in terms the most
emphatic. It is the will of both the people and the
states that Texas shallbe annexed to the Union promptly
and immediately. It may he hoped that, in earryieg
into execution the public will, thus declared, all collateral
issues may be avoided. Future Legislatures can best
decide as to the number of states which should be formed
out of the territory, when the time has arrived for de-
ciding that question. So with all others. By the
treaty, the United States assumed the payment of the
debts of Texas, to an amount not exceeding 10,000,000
dollars, to be paid, with the exception of a sum felting
short of 400,000 dollars, exclusively out of the proceeds
of the sales of her public lands. We could not, with
honour, take the lands, without assuming the full pay-
ment of all incumbrances upon them.
Nothing has occurred since your last session to in-
duce a doubt that the disposition of Texas remains un-
altered. No intimation of an altered determination on
the part of her Government and people, has been fur-
n;shed to the Executive. She still desires to throw her-
self under the protection of our laws, and to partake of
the blessings of our federative system, while every
American interest would seem to require it. The ex-
tension of our coastwise and foreign trade, to an amount
almost incalculable—the enlargement of the market for
our manufactures—a constantly growing market for our
agricultural productions—safety to our frontiers, and
additional strength and stability to the Union— these
are the results which would rapidly develope themselves
upon the consummation of the measure of annexation.
In such event, I will not doubt but that Mexico would
find her true interest to consist in meeting the advances
of this Government in a spirit of amity.
Nor do I apprehend any serious complaint from any
other quarter ; no sufficient ground exists for such com-
plaint. We should interfere in no respect with the
rights of any. other nation. There cannot be gathered
from the act any other design on our part to do so with
their possessions on this continent. We have interposed
no impediments in the way of such acquisitions of ter-
ritory, large and extensive as many of them are, as the
leading powers of Europe have made, from time to time,
in every part of the world. We seek no conquest made
by war. No intrigue will have been resorted to, or acts
of diplomacy essayed, to accomplish the annexation of
Texas. Free and independent herself, she asks to be re-
ceived into our Union. It is a question for our own de-
cision whether she shall be received or not.

The two Governments having already agreed through
their respective organs on the terms of annexation, I
would recommend their adoption by Congress in the
form of a joint resolution, or act, to be made binding on
the two countries, when adopted in like manner by the
Government of Texas. _ .

In order that the subject may be fully presented i❑
all its bearings, the correspondence which has taken
place in reference to it, since the adjournment of Con-
gress, between the United States, Texas, and Mexico, is
herewith transmitted.
The amendments proposed by the Senate to the con-
vention concluded between the United States and Mexico
on the 20th of November, 1843, have been transmitted
through our Minister, tor the concurrence of the Mexican
Government ; but, although urged thereto, no action has
yet been had on the subject, nor has any answer been
given which would authorise a favourable conclusion in
the future. . .

The decree of September, 1843, in relation to the re-
tail trade, the order for the expulsion of foreigners, and
that of a more recent date in regard to passports—all of
which are considered as in violation of the treaty of
amity and commerce between the two countries, have
led to a correspondence of considerable length between
the Minister for Foreign Relations and our Representa-
tive at Mexico, but without any satisfactory result.
They remain still unadjusted, and many and serious in-
conveniences have already resulted to our citizens in con-
sequence of them.
Questions growing out of the act of disarming a body
of Texian troops under the command of Major Snively,
by an officer in the service of the United States, acting
under the orders of our Goverment; and the forcible
entry into the Custom-house at Bryarly's Landing, on
Red River, by certain citizens of the United States, and
taking away therefrom the goods seized by the collector
of the customs, as forfeited under the laws of Texas,
have been adjusted, so far as the powers of the Execu-
tive extend. The correspondence between the two Go-
vernments, in :reference to both subjects, will be found
amongst the accompanying documents. It contains a
full statement of all the facts and circumstances, with
the views taken on both sides, and the principles on
which the questions have been adjusted. It remains for
Congress to make the necessary appropriation to carry
the arrangement into effect, which I respectfully recom-
mend.

The greatly improved condition of the Treasury af-
fords a subject for general congratulation. The para-
lysis which had fallen on trade and commerce, and which
subjected the Government to the necessity f resorting
to loans and the issue of Treasury notes, to a large
amount, has passed away; and after the payment of up-
wards of 7,000,000 dollars, on account of the interest,
and in redemption of more than 5,000,000 dollars of the
public debt, which falls due on the Ist of January next,
and setting apart upwards of 2,000,000 dollars for the
payment of outstanding Treasury notes, and meeting an
instalment of the debts of the corporate cities of the dis-
drict of Columbia—an estimated surplus of upwards of
7, 000,000 dollars, over and above the existing:appropria-
tions, will remain in the Treasury at the close of the
fiscal year. Should the Treasury notes continue out-
standing, as heretofore, that surplus will be considerably
augmented. Although all interest has ceased upon them
and the Government has invited their return to the
Treasury, yet they remain outstanding, affording great
facilities to commerce and establishing the fact that under
a well-regulated system of finance the Government has
resources within itself, which render it independent in
time of need, not only of private loans, but also of bank
facilities.

The only remaining subject of regret is that the re-
maining stocks of the Government do not fall due at an
earlier day ; since their redemption would be entirely
within its control. As it is, it may be well worthy the
consideration of Congress, whether the law establishing
the sinking fund—under the operation of which the debts
of the Revolution and last war with Great Britain were,
to a great extent, extinguished—should not, with proper
modfications (so as to prevent an accumulation of stir-
plusses, and limited in amount to a specific sum), be re-
enacted. Such provisions, which would authorise the
Government to go into the market for a purchase of its
own stock, on fair terms, would serve to maintain its cre-
dit at the highest point, and prevent, to a great extent,
those fluctuations in the price of its securities which
might, under other circumstances, affect its credit. No
apprehension of this sort is at this moment entertained,
since the stocks of the Government which but two years
ago were offered for sale to capitalists at home and
abroad, at a depreciation, and could find no purchasers,
are now greatly above par in the hands of the holders;
but a wise and prudent forecast admonishes us to place
beyond the reach of contingency the public credit.
It must also be a matter of unmingled gratification
that, under the existing financial system—resting upon
the Act of 1789 and the resolution of 1816—the currency
of the country has attained a state of perfect soundness;
and the rates of exchange between different parts of the
Union, which in 1841 denoted, by their enormous
amount, the great depreciation, and, in fact, worthless
ness of the currency in most of the States—are now re-
duced
to little more than the mere expense of transport-
ing specie from place to place, and the risk incidental to
the operation. In a new country like that of the United
States, where so many inducements are held out for spe-
culation, the depositories of the surplus revenue, con-
sisting of banks of any description, when it reaches any
considerable amount, require the closest vigilance on the
part of the Government. All banking institutions, un-
der whatever denomination they may pass, are governed
by an almost exclusive regard to the interest of the stock
holders. That interest consists in the augmentation of
profits, in the form of dividends, and a large surplus re-
venue entrusted to their custody, is but too apt to lead
to excessive loans and to extravagantly large issues of
paper. As a necessary consequence, prices are nomi-
nally increased, and the speculative mania everywhere
seises upon the public mind.
A fictitious state of prosperity for a season exists ;
and, in the language of the day, money becomes plenty.
Contracts are entered into by individuals, resting on this
unsubstantial state of things, but the delusion speedily
passes away, and the country is overrun by an in-
debtedness so weighty as to overwhelm many, and to
visit every department of industry with great and ruinous
embarrassment. The greatest vigilance becomes neces-
sary on the part of the Government to guard against
this state of things. The depositors must be given dis-
tinctly to understand that the favours of the Govern.•
ment will be altogether withdrawn, or sabstanstially di-
minished, if its revenues shall be regarded as additions
to their banking capital, or as the foundation of an en-
larged circulation. The Government, through its re-
venue, has, at all times, an important part to perform
in connexion with the currency; and it greatly depends
upon its vigilance and care whether the country be in-
volved in embarrassments similar to those which it has
had recently to encounter ; or, aided by the action of the
Treasury, shall be preserved in a sound and healthy

condition.
The dangers to be guarded against are greatly aug-
mented by too large a surplus $ revenue. When that