Year: 1870

lDEn H4, lOtV. y ,....,..


In view Of the importance Of this qucs-
ton, earnestly urge upon Congtess early
action, and m expression Of its views as to
the best means of acquiring San Domingo.


HOW THE ACQUISITION NAY BE MADE.


My suggestion is, that by joint rssoiu-
tion of the two Houses Of Congress the
Executive may be AUTHORISED 70 appoint Q
commission 70 negotiate for tFsefy with
the authorities Of San Domingo tor the ac-
QUESTION Of that island; that an appropri-
stiou be made to defray the expenses Of
such commission that the question may
then be determined by the action of the
two Houses of Congress upon resolution
Of annexation, as in the case Of the acqui-
sition of Texas. So convinced am of all
the advantages to flow from the acquisition
Of San Domingo, and the great disadvanta-
ges (might almost say calamities) from its
nor. acquisition, that I believe the subject
hos only to be investigated to be approved.


THE "FREE ZONE" OF MEXICO.


It is to be regretted that our represent
tions in regard to the injurious effects, es.
pecially upon the revenue Of the United
States, of the policy Of the Mexican Gov
ernment in exempting from import duties
large tract Of its territory upon our Dor:
ders, have not only been fruitless, but that
it is even proposed in that country to ex.
tend the limits within which the privilege
adverted to has hitherto been engaged.
The expediency Of looking into aud giving
your serious consideration to the proper
means for countervailing this scheme.


THE CURRENCY AND THE BANKS. 3


At the last session of Congress respect
fully recommended that an appropriation
be made, and authority be given to issue
new bills, upon such paper and in such
form as may be designated. The Secretary
Of the Treasury, through the Comptroller
Of Currency, in his report Of 1869, recon-
mended the establishment of an agency in
the city of New York, under the control of
the National Banks, for the redemption of
their issue. Tho substance Of this recon-
,neudation seems to be that it is not only
proper but necessary, aud that the expense
should be borne by the Banks.


Coupled with this Recommendation, I
take this occasion to say that the banking
system Of the country appears to be well
managed, and to answer reasonably the
purpose for which it was established. It
is no doubt true that the Treasury notes,
in representing an equal amount of the
public debt without interest, are the most
economical circulation for the Government;
but it should be considered that the bank
ing institutions of the country are the agen-
cies by which business is established and
fostered. The whole system of banking
should be extended only for the purpose Of
meeting the demands of business, but when
the demands are urgent, concession should
be made, upon the ground that prosperity
Of business is more important than the
mere saving Of interest arising from the
circulation Of treasury notes.


REVIVAL OF AMERICAN COMMERCE.


Our depressed commerce is subject to
which l called your special attention st the
last session, and suggested that it would,
in the future, have to look more to the
countries south of US aud to China and
Japan, for its markets Our representa-.
tives to all these Governments have exert
ed their influence to encourage trade be.
tween the United States aud the countries
to which they are accredited, but the fact
exists, that the carrying is done almost en-
tirely by foreign bottoms, and while this
state Of affairs exists, We cannot control our
due share of the commerce Of the world.
That between the Pacific States and China
and Japan, is about all the carrying trade
now conducted in American vessels. /
would recommend liberal policy towards
that line Of American steamers-one that
will insure its success and its increased
usefulness. The cost of building iron YES:
sels--the only ones that can compete with
foreign ships 10 the carrying trade-is so
much greater 10 the United States than in
foreign countries, that without some assist
ance from the Government, they cannot be
successfully built here. There will be
several propositions laid before Congress
in the course Of the present session, look.
ing to remedy for this evil; even il it
should be at some cost 70 the national
treasury. I hope such encouragement will
be given as will revive American shipping
on the high-seas, and American ship build
ing at home. 1''eta sN
NEW BUILDING FOR STATE DEfAHrMENT.


The condition Of the archives Of the De-
partment Of State calls for the early action
Of Congress. The building now rented by
that Department is frail structure, at an
iucon nvenieut distance from the Executive
mansion, aud from the other Departments;
it is ill.adapted to the purposes for which
it is used has not capacity to ,aceommo-
date the archives, and Is not tire.proof: Its
remote situation, its slender construction
and absence Of supply Of water in the
neighborhood. leaves but little hope Of
safety for either the building or its con-
tents iu the case Of the accident Of fire
its destruction would cause the loss of the
rolls containing the original Acts and Rcso-