Newspaper of The New York Herald, December 8, 1847, Page 1

Newspaper of The New York Herald dated December 8, 1847 Page 1
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11 WCSROMMHMMMMM TH Whole Ha. 4833I j . __ ' PRESIDENT'S MESSAGE, DELIVERED TO BOTH HOUSES OF CONGRESS TV BSD AT, DEC. T, 1847. Ft How Citirfi of iKt S?nafe ? J ?f tkrn mf Rmart ,6ntativf t ! The toiutl meeting of Congress l? always an lnt?rotting ev*nt. The representative* of the State* anil of the peool* rcmi frmh from their constituents to take ooon eel together for the oonmon good After la riUtence of near three-fourths of m century a* a free and lnd?penJ nt repnblio, the problem no longer remain* to be solved, whether man ! oapable of Nil government.? The success ot our admirable ijitem U a conolusiv* refutation of the theories of those in other countries who maintain that ' a favored few'1 are bora to rule, and that the maw of mankind nrait be governed by force. Subject to no arbitrary or hereditary authority, the people are thy only sovereigns reoognlsed by our oonstltutlon Numerous emigrants of every lineage and language, attracted by the civil and religion* freedom we enjoy, and by our happy condition, annually crowd to our shores, and transfer tiiilr heart, not lea* than their aUegianoe, to tha oouatry (Those dominion belong* alone to the paopla. , Mo country ha* be?n so much favorsd, or should acknowledge with deeper reverence the manifestation* of the Divine protection. An all-wise Creator direetod and ga rded us In onr infant straggle for freedom, and has constantly watched over our surprising progress, until wa have become one of the great nations of the earth. it 1* in a country thui favored, and under a government in whloh the executive and legislative branches hold their authority for limited period), alike from the peoule, and where all are renpontible to their reepective coastltaeneies, that it is again my duty to communicate with Congress upon the state of the Union, and the present condition of publio affairs. Duriug the past year the most gratifying proofs are presented that our country has been bUssed with a wide spread and universal prosperity. There has been no fierlod einoe the govarnment was founded, when all the nJustrial pursuits of oar people have been more successful, or when labor in all oranohes ot business has received a fairer or better reward. From our abundance we have been enabled to perform the pleasing duty of furouiUig food for the starving millions of less favered oountriea. In the enjoyment of the bounties of Providence at home, sucb as have rarely fallen to tho lot of any people, it is oaui,H of congratulation, that onr intercourse with all the powers or the earth, exoept Mexico, continues to bo of an amicable character. it has jverbsen our cherished policy to onltivate peace and good-will with all nations; and this policy has been steadily pursued by me. No cbanue has taken place in our relations with Mexl oo nine* tli* adjournment of tht* last Congress. The war in which the United States were lorced to engage with the g-rvernment of that country at 111 continues I a**m it unnecessary, after the full exposition of them contained in my messoge of tbe eleventh af May, 1640, and in my annual mesrage at the oommenoement of tbe neMton of CongreM la December last. to relterat* tbe eerioui causes of complaint whioh we bad against Mexico before sOe commenced hostilities. I c W sufficient, on the prseent ooculon, to say that the wanton violation of the rights of person and property of our oitlsens committed by Mexico, her repeated acts af bad faith, through a long series of years, and her disregard of solemn treaties, stipulating for indemnity to our l^Jqred citisqon, not only constltutod ample oause of war on ?ur part, but were of suoh an aggravated character as would have justified us before the whole world in resorting to this extreme remedy With an anxious desire to avoid a rapture between the two oeuntrtes, we forbore tor years to assert our clear rights by force, and continued 10 seek redress for the wrongs we had sufferered by amicable negotiation. In the hope that Mexi ?o might yield to paoilln oounoils and the demands of ] j jar.ion la this hope we were disappointed. Our minister of oeaoe sent to Mezloo was Insultingly rejected Tbe Vlexioan government refused even to hear the terms of adjustment whioh he was authorised to propose ; and floali)'. unier wholly unjustifiable pretexts, involved tbe t?o cnuntritn in war by Invading the territory of tbe State of Texas, striking the first blow, and shedding the < blood of our citiseos on our own soil Tbeugh the United States were the aggrieved nation, Mexico commenced the war, and we were compelled, in self defence, to repel the invader, and to vindicate tbe nation** Honor auu interests by prosecuting it wiili vigor u .til we coihU obtain a juit and honorable peace. On l? urniog that hostilities had bten commenced by Mexloo, I promptly oommunlcaled that fact, aocouipa nl? d with a succinct etatemeut of our other oausee of complaint against t'exioo, to Cougress ; and that body, by the act of the thirteenth of May I84 j, declared that " by the act of tbe republlo of Mexico, a state of war exists r?t. ireen that government and the Uoited States," this ?t declaring " the war to exist by tbe act of tbe republio of Moxioo," and melting provision for its prose oution * to a speedy and suocessful termination," was SeSseii with gveat unanimity by Conureen. there being ut tro n-g.tlT, rites io the eenate^nd but fourteen in tL>? Hou.-e f Representatives. The existence of the war having thus been declared by Cougiess. it be?*me my duty, under tue constitution has been performed ; and though, at every stage of Its progress. I have manifested a willingness to terminate It by a jtlBt peace, Mexico Lu refused to uccede to any term* whioh could be aocepted by the United States, ooujiateaUy with the national honor mnd laterest. The rapi'l an J brilliant suooessbs of our axms, and the Tut extant of the enemy's territory whioh had been ; overran and conquered, before the olone of tha last session of Congress, were folly known to that body. 8ino? that time, tne war hat beeu prosecuted with inoieased energy, ami I ?*u ^ratified to state with a success whioh eoouiands universal adaption. History presents no parallel of so many glorious victories achieved by any nation within so abort a period. Our arm*, regular* and voluuteers have covered themselves with linu-risbable houors. Whenever and wherever our forces have en coontered the enemy, though be was in vastly superior numbers, and often entronohed in fortified positions of his own selection, ud of great strength, ha has been defeated. Too muoh praise cannot be bestowed upon our offloers and man, regulars and volunteers, for thsir gallantry, discipline. Indomitable courage and p?i severance, all se?klnj the pest of danger, and vielng with each other In deeds of noble dating. Whlie every patt lot's heart must exult, and a just national pride animate every bosom, In beholding tbe high proofs of courage, consummate military skill, steady disc'pllue, aud humanity to the vanquished enemy, exhibited by our gallant army, the nation Is called to mourn over tbe loss of many brave officer* and soldiers who hav* fkUsn iu defence of their country's honor and Interests. The bittve dead met their melancholy f*te iu a foreign land, nobly discharging their duty, and with their oonntiy's Sag waving tiluuii*hantly In tbe face of tbe foe. Tbelr patriotic deeds are Justly appreciated, and wilt long be remembered by tbeir grateful countrymen. The parental care of the government they loved and served shoold ha extended to their surviving families. Shortly after the adjournment of the last sarslou of Congress. the gratifying ln'.elilgenoe was received ?f the signal victory of Bnena Vista an t of the fall of the oity of Vera (tus, and with it the strong castte of San Juan de Ulna by which it til defended Uellevlng that alUithese and other successes, to liouorable to our arm* and 00 disastrous to Mexioo, the period was propitious to affjrd bur another opportunity, if she thou.ht proper to embrace It, to enter Into negotiations for peace, a oouimisnloner was appointed to prooe?d to the headquarters of our army, with full powers to enter upon negotiations, and to conclude a just and honorable treaty of peaoe. He wae not directed to make any new overtures of peaoe, bat was the bearer of a despatch from the Secretary of State of the United States to the Miulster of Foreign Affair* of Mexioo, in reply to ons reoeived from the Utter of the twenty-sueond of February, 1847, in which the Mexican government was iulorioeu of bis appointment, atid of his presence at the headquarters of our srmj, aud that he waa invested with full powers to cncolude a w 'lot'.: >n treaty of peaee, whenever the Mexloan government might slgn.iy a dcsiu to do so. Wnlle J w*s unwilling to sunject the United 8'ate* to another indignant rrfusal, 1 was yet resolved (hat the evils of the war should uoi. be protracted a day longer than might lie reudered absolutely necetaary by the Mexican government. Care was taken to give no instructions to the com missioner which could in any way interfere with our military operations, or relax our energies lu the prosecution of the war He poseesaed no authority in any manner to eoutrol these operations. He was authorized to exhibit his (Dstructious to the General in commaud of the army; and In the event of a treaty being concluded aud ratified on the part of Mexico, be was direr ed to give him notice of that fact. On the happening of such oonllogeney, and on receiving notice thereof, the General Inoomuiaud was instraoted by the Secretary of War to suspend further active military operations until fur ther orders Theoo ln?truailons were given with a view to in eruiit hostilill-s, un'll tbe treaty thus ratified by Mexioo could be transmitted to Washington, and receive the aeilon of the government of the United States. ; The oommlssloner was also directed, on reaobtng the army, to deliver to the General in command the despatch which he bore from he Secretary of State to the minister fit Korelga Affairs of Mexioo, and on receiving it, the O. n?r*l was instructed by the Secretary of War to csus? it to be trannuitteu to the commander of the Mexioan forces, with a request that it might be oomrnijBlotted to his giVernnieut The commissioner did not reach the head quarters of the atmy uutll after another brilliant victory bad frowned our arms at Cerro Gordo. The d>spaiobi which be bore, from the Secretary of War to the General in command of the arinv. was re celved by that oincer. then at Jalapa, on the seventh clay of Alav, 1H17, together with the despatch from til* Hecratiiry of State to tb* Minister of Foreign Alf.ur* of Mexico, having been transmitted to hla from Vera I rui. I he cuiuuiuMoner arrived at tlm healijuarter* of tba army a Uo day* afterward* Hla pre*omo with tha army, aod hla diplomatic character were made krv wnt> ?.h? \]exican government, from t'aehla, on the twelfth of June, 1847. by tba tran*ml*?lou of tbeUeupatcb from tbt Heeretary of Stale to tha Minister ut Foreign Altalr* of Mexico Many week* ?la peed after it* r?oeipt, and no overture* were made, nor ??? any desire ?x|ire**ad by the Mexican government to ?nt<r Into n--g tiatlou* for pence Oi<r army pursued III march upon tba capital.and, a* it approaauej il, wa* met by formidable rsoatanee Our toro?ii Urst encountered th.i enemy, and achieved sigiai victories in tba (averaiy contacted batile* of Contra, a* and ctiuruoiuoo. it fU not until after the** act.on* E NE NEW h&d resulted in daoMva Tiotorl??, an J the capital of the wm wilbin oar power, that the Mexican government manifested any disposition to enter Into negotiations for peace ; and even theo. as events bar* proved, there 1* too muoh reason to lit-Here they were insincere, and thst in agreeing to go through tbe forms of negotiation, tha object was to gain time to strengthen the defrnoaa of their oapltal, and to prepare for freah reslstanoe. Tba General In command of tha army deemed tt expedient to suspend hostilities temporarily, by entering into an armistice with a view to the opening of negotiations. Commissioners were appointed oa tha part of Mexico to maat the commissioner on tbe part of the . United State* The result of tha ooaferenoet which look place between these functionaries of the two goTtrnnwota wu a failure to oonoluile a treaty of peaoe. The comiulsaioner of the United State* took with him the prnjet of a treaty already prepared, by the terms of wbieh tbe indemnity required by the United State* wa* a cession of territory. It 1* wsil known that the only indemnity whieh it U In tbe power of Mexico to make, in satisfaction of the joat and lone deferred claim* of our oltisen* against her, and tbe #?l* mean* by whleh *ha oan reimburse the Unit d State* for tbe expense* of tbe war, i* a a***lon to the United State* of a portion of h?r territory. Mexico ha* no money to pay, and no other mean* of making the required indemnity If we refnae thl*. we oan obtain nothing else To rrjeot Indemnity, by refusing to accept a oeaalon of territory, would be to abandon all our Just demands, and to wage the war, bearing all It* sxpenae*, without a purpose or definite object. A state of war abrogates treaties previously existing between the belligerent*, and a treaty of peaoe put* an end to all claims for indemnity?fortoitiou* acts oommitted, under the authority of one government against the citizen* or *utyeot* of another, nnle** thsy are provided for in it* stipulations. A treaty of peace which would terminate the existing war, without providing for indemnity, wonld enable Mexioo?tbe acknowledged debtor, and herself the aggretsor In tbe war?to relieve herself from her just liabilities. By *noh a treaty, our citlzeus, who hold juat demand* against her, would have no remedy either against Mexioo or th*ir own government. Our duty to the** citizon* must forever prevent such a peace, and no treaty which does uot provide amplo mean* of discharging theae demand* oan receive my sanotlon. A treaty of peaoe should settle all existing differences between tbe two countries. If an adequate reunion of territory should ba made by auoh a treaty, the 1'nlted ah/Mil.l ?U.aa /.ftm .11 I I. kll if .n.l assume their payment to our own citizens. If, instead ol this, the I'nibfd States were to consent to a treaty by wh;oh Mexico should again engage to pay the heavy amount of Indebtedness which a just indemnity to our government and our citizens would impoee on her, it ia notorious that she does not possess the meant to meet such an undertaking. Krotn suoh a treaty no result oould bo anticipated, but the same irritating disappointments which have heretofore attended the violations of imllar treaty stipulations en the part of Mexico. Such a treaty wonid be but a temporary cessation ol' hostilities, without the restoration of the friendship and good understanding which should oharaoterUe the futute intercourse between the two oountrles. That Congress contemplated the acquisition of territorial indemnity when that body made provision for the proseoutlon of the war, Is obvious. Congress could not nave meant?when, in May. 1846, they appropriated ten millions of dollars, and authorised the President to employ the militia and naval, and military forora of the United States, and to acorpt the services of fifty thou sand volunteers, to enable him to proseoute the war; aod when, at their last session, and after our army had Invaded Mexloo. they made additional appropriations aud authorised the raising of additional troops for the same purpose?that no Indemnity was to be obtained from Mexico at the conoloslon or the war; and yet it was certain that, if no Mexican territory was acquired, uo Indemnity oould be obtained It is further manifest that Coegreis oontsmplated territorial Indemnity,from the fact that at their last session, aaaot wis pasted, upon tbe executive recommendation, appropriating three millions of dollars with that exp< ess object This appropriation waa made ' to enable the President to oonolude a treaty ef peace, limits and boundaries with the republio of Mexloo, to be used by him In the event that said treaty, when signed by the authorised agents of the two governments, and duly ratified by Mexloo, shall osll for the expenditure of tbe same, or any part theseof." The object of asking this appropriation was distlnotly stated in tbe several messages on the sabjeot whloli I oommunioatej to Congress. Similar appropriations made In 18U3 and 1808 whloh were referred to, were Intended to be applied in Florida* In Ilk* manner it was anticipated that, iu nettling the term* of a tieaty of "limit* and boundaries" with Mexico, a cestiou of territory utiajiud tu be ol greater T?lue than the amount of our demand* against her might be obtained, and that the prompt payment 01 thia turn?iu part consideration for tha territory ceded ?on the conclusion of a treaty, and it* ratification on her p?rt, might be an iLducetn?nt with her to make suob a oeerion or territory a* would be satisfactory to the United States And although the failure to oonclud* ?uob a trutty has rendered ie unneoeisary to ns any part ol the three million* of dollar* appropriated by that <ut, and the entire turn remain* In ihn treasury, it Is still applicable to that obj ot, should tha contingency occur making such application proper. The dootrlue of no terri ory is the doctrine of no indemnity j and. It sanctioned, would be a publlo acknowledgment that our country was wrong, and that the war declared by Congress with extraordinary unanimiIt. we* uiijust, hiiiI should be abandoned { an aduiit-siou unfounded in fact, and degrading to the national cha yaetar The terms of the treaty propoeed by the IT nited State* were not only lust to Mexico, but, considering the oharaoter and amount of our olalms, the unjustifiable and nnnrflfoktd nomm#no?mfnt nf hnittMMua h? hup th? a*. pen*** of the war to which we have been lubjeoted, and th* aucce** which hai attended our arms were deemad to b? of a moat liberal character The commlMioner of the Uulted State* waa authorised to agree to the eatabliahmant of the Rio Grande as the boundary, from its entrance into the Oulf to It* in teraeolion with the louthern boundary of New Mexioo, in north latitude about thirty-two degree*, and to obtain n ceMion to the United States of the province* ot New Mexico and the California!, and the privilege of the right of way aoro*i the iathmua ot Tehuantepeo. The boundary of th* Rio Grande, and the cesMon to the United Scutes of New Mexioo and Upper California, oon titnted an ultimatum whioh our oomtniaaloner waa, under no oiloumatancr* to yield. That it might be maul est not only to Mexico, but to all other nation*, that the Uo.ted State* were no: dlapoaed to take advantage of a feeble power by iniiaiing upon wreattn; from her all the other provineea, including many of h*r prinoipal town* and citiea, which we had conquered and held in our military occupation, but were willing to oonclude a treaty in a apirlt of liberality, ur commissioner waa authoriaml to atlpulate for the reatoration to .Vlexioo of all our other conquetU. A* thn territory to be acquired by the boundary propoaed might be eatlmated to be of greater vain* than a fair ml lit valan t f/.r ?|? In.l ..... - wan uuth rised to stipulate for the payment of auoh additional pecuniary conjiieratlon af ?u deemed reasonable. The t< rms of a treaty proposed by the Mexican commissioners ware wholly Inadmissible. They begotiaUd ai If Mexico were the victorious, and not the vaaqulsh d party. They must hare known that their ultimatum could never be accepted It required the United Stiles 10 disaieinber Texas, by surrendering to Mexico that part of the territory ot that Hlate lying between the Nuecea and the Hlo Grande, Included within her limits by her laws wlien she was an Independent repnblio, and when she waa annexed to the United States and admit, ted by Congress as one of the States of our Union It contained no provision for the payment by Mexico of thejnst claims of | our citisens. It required indemnity to Mexloan citizens for Injuries they may hare sustained by our troops in the'prosecution of the war It demanded the right for Mexico to isvy and oolieot the vietican tsrilf of duties on goods Imported Into her ports while in our military occupation during the war, and the owners of which had peid tooflloera of the United States the military contributions which had beau levied upon them; and It offered to eede to the United States, lot a pecuniary consideration, that part of Upper California lying north of latitude thlrty-s?ven degrees. Such were the unreasonable terms proposed by the Mex loan oiumlaslonerv The cession to the United Slates, J>y Mexico, of the provinoes of New Mexloo and the California*, as prOposrd by the commissioner of the United dtatee, It was believed, would be more In stccordaoce with the convenience and Interests ef both nations, than any otherjoesslouof territory whlen It Was probable MexJoo oonld be Induced to make It is maalfaat to all who have observed,the actual candltion of tha Mexican government, for soma years past, anil at nr?-ii*nt- that tf t hm? nak..?i.? ku a by ti?r, sum oouia not long continue to hold and govern them. .Mwiloo is too ieoble a power tt> govern these provinces, lying m they do it a distance of more tnen a thousand wiles from her capital. and, If attempted to be retained by ber. they would oonstituta but for a short time, even nominally, a part of bar doinlnioas Ibis would be especially the ease with I'pper Callfor. nia The sagacity of powerful Karopean nation* baa. long sine*, directed their attention to lh<t commercial importance or tLAt proriocn, aad there can be little doubt Ibat the moment the United Slates shall relln qjiiHh tli.ir present ocoupatiou of It, and tbair claim to it ? indemnity, an effort would be made by some ferelgu power to posses It. either by conquest or by purenese If no Wrelgu goverumeut should acquire it In either of these modes, au independent revolutionary government would probably be established by the iabatMtaata. and suob foreigners as may remain in or remove to tne country, a* icon as it shall be known that the l olled States have abandoned it Much a government would be too feeble long to maintain its separate Independent existence, and would finally beooma annexed to, or be a dependent colony of some more powerful State Should any foreign gorernmeot attempt to poases* it as a colony, or otherwise to incorporate it with itself, the principle avowed by President Monroe In IBJi, and reaffirmed in my lir*t annual message, that no foreign p^wer shall, with our oonsent, be permitted to plem or establish any uew eoluny or dominion on any part, of the North American continent, must be maintained In ii.aintaii.ibg this principle, aud in resisting {Us invasion by any foreign powsr,%e might be Involved In other wars, more expensive, and mora diflianlt t han that in winch we aie ow engaged The provlnees of Naw Mexico and the California* are oontlgli.ua to tbs territories of ths United States, and if broagut under the government of our laws, their resources ? miueial. agricultural manufaeturiug,and com* mercial? would son b develoi*ed Upp< r C - Hto.nia Is nounded on the north by our Oregon p<MS*f?lon*, aud If held by toe Uotted States, would soon be settled by a hardy, enterprising,aud Intelligent portion of our yvpuiatitu. The bejr of Mu * raaelseo w yo YORK. WEDNESDAY M and other haibora along tha Cal Worn l*n oo??t, wcrold iffrrd *baltar for ou.- navy.for our Damnroui wbal? ublM anil other merchant ihmU employed la the Puito ooean, and would In a abort period b*oom? tba oarta of an axtanalva and pro&tabke comnaro* with China, sad o*.h?r ountrl#* of tha ?ut Tbeee advantage, 1b wbiah tha whole ootomerolal world would ftartioioitta. would at onoe ba aacured to th* United Statea by the aeaalon of thl* territory; while It U oertaln that u long aa It remain* a part of th* Mexican domioioas, they ou to enjoy*4 Mitlwt by Mitxloo ber??lf. so any other nation. New Mexico la a frontier province, and Am oarer been of any considerable value to Maxioo rrom ita locality. It la naturally connected with our weotern settlement*. The terrltonal Malta of the State of Texaa, too. aa defined by bar laws, before her admission into our Union, ambraoa ail that portion of New Mexico lying eaat of the Rio Oranda, while Mexico atiU claim* to bold tbla territory aa a part of her dotntuioee. The adjuatmant of tbla question of boundary la Important. There la another consideration which Induced the belief that tha Mexican government might even deal re to plaoe tbla province under the protection of the government of the United States. Numerous banda of fierce and warlike tavagea wander over it, and upon Ita border*. Mexico baa been, and muat continue to be, too feeble to reatrain them from committing depredatlona. robberiea and murders, n<Jt only upon the Inhabitant* of New Mexico itaelf, but upon thobe Of the other Northern Statea ot Mexico It would be a bleialng to all the** Northern States to have tbelr citizens protected against them by th* power of the United Statea. At this moment, many Mexican*, principally femalea and children, are In captivity umoag them If New Mexloo were held and governed by the Unltad States, we could effectually prevent theae tribe* from committing such outrage*, and compel tbem to release these captive;, and restore them to their families aud friends In proposing to acquire New Mexloo and the California*, it was known that but an lnoonslderable portion of the Mexican people would be tranaferred with them, the country embraced within these province* being obiefiy an uninhabited region Thau MM ?Ka U..II.. -Vl.u l-J A me to authorise the terms of peace whioh war* proposed to Mexico. They were rejected ; sad, negotiations bslng at an end, hostilities were renewed. An assault wu laadu by oar gallant army upon the atr -ngly fortified placet near the gates of tbu olty of Mexloo, and upon the city lUelf; and, after several days of severe oonfllot, the Mexican furors, vastly superior in number to our own, were driven fr?m the city, and it wait occupied by our troops Immediately after information waa reeeived of tho unfavorable result of the negotiations, believing that his continued preeence with the army oould be productive of no good, 1 determined to reoall our oommlMioncr A despatch to thlit cffvot was transmitted to blm on the sixth of Ootober last. The Mexican government will be ioformed of his reaall; and that, in the existing state of things, I shall not deem it proper to mute any turlher overtures of peace, but shall be at all times ready to reoelve and consider any propoeals whioh may be made by Meilco. Since the liberal proposition of the United Slates was authorized to be made in .April last, large expenditures have been Incurred, aud the precious blood of many of our patriotic fallow-citizens has been shed in the prosecution of the war. This consideration, and the obstinate perseverauoe of Mexico In protracting the war, must lnllusnoe the terms of peaoe whioh it may be deemad proper hereafter to aooept. Our arms having been every wh<-re victorious, having subjected to our mllltAy oooupatlon a larje portion of the enemy's country. Including his capital and negotiations for peaoe having tailed, the Important questions arise?In what manuer the war ought to ba prosecuted ' and what should be our future policy ? I cannot doubt tbat we should eeoure and render available the conquests which we have already madej and that, with this view, we should hold and oooupy, t>y our naval and military forces, all the ports, towns, allies, and provinoes now in our ocoup*tlon, or which may hereatter fell Into our poMettsion; that we thouid press forward our military operations, and levy suoh military contributions on the enemy as may, as tar as practicable, defray the future expenses 01 me war Hail the government of Mazloo aooeded to that suitable aod liberal term proposed, that mod* of adjustment would have been preferred Mexioo having decliaed to do this, and tailed to offer any otb-r term* which could be accepted by the United States, the national honor, no lens than the publlo Interests, require* that the war should be prosecuted with increased energy and power Until a jn*t and satisfactory peaoe can be obtained. In t be meantime, as Mexico r?tuses all indemnity, we should adopt meaAUres to Indemnify oursrlevs, bv apuropriating permanently a portion of h?r territory. Early after the uuatmeacemeot of the war, N. w Mcxico aud Uu Ci?l>loiotas were taken possession of by out forties. Our military and uaval commander* were ordered to couquer and bold them, subjnot to be dl? posed of l.v a treaty uf p??a? '1 bese provinces are now in our undisputed ocoupacion.and hate been so for many month* ; all r*si?tauo? On tt<e part of Mexico baring cuared within their li-nus 1 am satisfied that they should never be surrendered to viexloo Should Congress conour with me In ?hb> opinion, and that they should be retained by the United Sta e* ? indemnity. 1 can perceive no good rea-ou why the civil Jurisdiction and laws of the Uuited States ilniiild not at once lie extended over them 'i'o wait lor a treaty.of peace, suoh as w* are willing to make, by which cur relations towards them would not b? changed, cannot be good policy ; whllntour own interest, and that of the people Inhabiting them, require that a stable, responsible, and frue government uud?r our authority <bould as soon as possible, be established over them. Should Congress, therefore, determine to hold these pruvinoe* permanently, and that they sball hereafter be considered a* constituent parts of our country, the early establishment of territorial government!) over theia will be Important for the more perlect protection of persons and property ; and 1 reoommend that such territorial governments be established. It will promote peaee and tianqullllty among the Inhabitants, by allaying all apprehension that they may *iUl entertain of tie lag again surjected to tne jurisdiction of Mexico. I invite the earl; aad favorable consideration of Congress to thin important subject. Besides New Mexico and the California*. th'.jre are other Mexloan provinces which have been reduced to our possession by oonquest. These other Mexican provinces are now governed by our military and naval ctmmanders, under the general authority which 1* conferred upen a conqueror by the low* of war. They should oontinue to be held as a means of coercing Mexico to ancsde to juit ternm of peao?. Civil an well an military ofHoers are required to conduct such a government.? Adequate compensation to be drawn from contributions levied on the enemy should he fixed by law for such <111. [ jers at may be thus employed Whit further provision may become necessary, aud what flnai disposition it may be proper to make of them, must drpend on the future prngresa ot the war. aud the oourse which Mexioo may think proper hereafter to pursue. With the views I entertain, 1 cannot faror the policy wliloh lias been suggested, either to withdraw our army altogether, or to retire to a designated line, and simply uum iuu vniuu it. iimiuuriw uur army uuo^ttner from thu oonqtiMU they hare mad* by dnedx of uuptralelled bravery, and at thu expanse of bo much blood and I treaauru, In a juet war on our part, and one which, by m? ?et of the enemy,we oould not honorably hava avoided, would be to degrade tbe nation in it< own ettimation and In that of tbe world To retire to a U?e, and simply hold and defend it, would not terminate tbe war. On the contrary, it would encourage Mcxloo to persevere, and tend to protract It Indefinitely. It I* not to be expected that Meiloo, after refuting to eitabllah auch a lUe a? a permanent boundary, when our viotoriou* army are in pnueaaion of her oapltai, and In tbe heart of her coantry, would permit ua to bold It without reeUtance. That ihe would continue the war, and in the moet haraeaiug and annoying form*, there can be no doubt. A. border warfare of the moat saragx character, extending over a 1i?dk line would be uooeMiugly waved. It would require a large army to be kept constantly In tbe field, atatloned at poate and garrlnona along such a line, to protect aud defend it The enemy, relieved from thepr?Mure of our .trme on bla coaata and In the populous partH of the interior, would dlreot hi* attention to thin line, and, a?l?otlag an isolated poet for attaok. would concentrate hla foroea upon It. This would be a condition of affair* which the Mexican*, pnraatng their favorite *y*tem of i guerilla warfare, would prooably pref-r to any other Were we to mumi a defemive attitude on ?uot> a line, : all the ad van agee of ineh a *tate of war would be on tbe tide of the enemy. We could levy no oentribu| tion* upon him, or in any other way make him f?el the I pressure of tne war, but must remain Inactive an J await hia approach, brim in constant uncertainty at what point on the line, or at what tlmu, he m gtit make an assault. He may assemble aud organise an over- 1 whelming force In the interior, on his own irtJa of the lino, anii, concealing hi* purpose, make a sudden aMault ; upon ona tome of oar posts *o distant from aoy other ! hs to prevent the poeelbility of timely succor or r*lu forcemeat* ; and in thia way oar geliant army would b* exposed to the danger of beinj cut off in detail ; or if, by thair unequalled bravery and proweea everywhere exhibited during tbla war, they should reptile* the enemy, their number* stationed at any one poal may be^oo tiaall to puriue him If the enemy be repulsed lu one attack, he would have nothing tu do but to retreat to hl? own 'ide of the line. aud. being in no tear of a pursuing army, may reinforce himself at leisure for another attack on the same or some other post. He may. too, are** the line between our pons, make rapid incursions into the country which we nold, murder the Inhabitant*, ooinoiit depredation* on them, and then retreat to the Interior before a sufficient force oan be concentrated to pursushlm. Huch would probably be the harmssiug obaraoter of * mere defensive war on our part If our force*, when attacked, or threatened with attaok, be permitted to arose'he line, drive hai . the enemy, and conquer him this would b- again to invade the enemy'* country, after having io?t all the advantages of the conquest* we have already made, by having voluntarily abandoned them To hold sueli a line successfully and lu security, it is f*r from being certain that It would not require a* large an army as would be necessary to hold all the conquests we have already made, and to continue the proMuatlon ol the war In the heart of the enemy 's country It Is also far from biing certain that the expenses of the war would be diminished by such a policy. I am pariuaded that the best m-ansof vindicating tlie national honnr and interest, and of bringing the war to an honorable close, will be to prot-eu'.e it. with increased energy and |>ower lu the vi al parts of the enemy's Hualiy. In rny annual message to Congress, of December last, I declared th u " the war has not been waged with a view t<> conquest; but having been commenced by Xex icn. It ha* been c irried luto the enemy's oou.'try. aud will be vigorously prosecuted there, witn a view to obtain an honoracle pence, aud theraby > cure HinptH Indemnity for tftn expeuses uf ttai war, as well a* to our uincb injured eitlseua, who hold Urge pecuniary demands against Mexloj." Suck, la my judfinsat, continue* la |RK 1 ORNING, DECEMBER 8, b? our ttu > policy?mdaad, the only policy wblob will

probably houn ? parmanant paaea. 1 It ha* n?f?r ba*a oontampl -tad by ma. u an objaat of i tb i war, to mak? a parmanant oonqoaat of tba rapubllo of Maxico. or to annihilate bar Mparata ailataaoa a* aa I iadapaadant nation On tha contrary, tt baa avar baan my daaira that aha ihooid maintain bar nationality ,aad, toadar a good novtramant. adantad to har oondltlan. ba a frw, Independent and proaperoua republic. Tb* United ! State* were the flrvt among the natlona to raeogo toe her Independence. ftftd km ftlnii d? aired to b* on term* of unity ftnd goo J ntighboihood with h.r This ?h? would not auffer By hir own oonduot ? hare boon compelled to engage la tliu present war la Ite proeecutlon wo aook not h?r overthrow as a nfttlon; bat, In vindicating our nation*! honor, we aeek to obUIn redress for tha wrongs eha hai done on, and Indemnity for our just damends against h?r. Wa demand an honorable peace; ftnd that peso* muat brlna with it indemnity for the paat. ftnd aacurity for tha future Hitherto Mexloo has refuaod all aooommodation by whloh aueh ft paace oould he ohtaioad. Whilst our armies have adranoad from rlotory to victory, from the commencement ot the war. It haa always bean with tha olive branch of peace In theij hania ; ftnd it has been in the power of Meiloo, at every step. to arraat hoatllltiea by accepting It. One great obatacle to tha attainment of peace haa undoubtedly ftriaan from tha Caot, that Mexico haa been ao long held injauhjection by one faotlon or military usurper aft?r another ; ftnd auch ha? bean the condition of Insecurity In whloh their aucoeaalve governments have been placed, that ea?h haa been deterred from making peace. leat, for thla very oauae. rival faotion might expel it from power. Such wa* the fate of Treeldent llerrera'a administration, in lali, for belug dlapoaed even to 1 la ten to the overtures of the United States to prevent tha war, aa la fully continued by an olBolal curreapondcuoit which Wok place In the month of August laat, between him and hla government, a copy of whloh Id herewith oommunioated. " Kor thla oause alone the revolution whloh dtoplaoed him from power waa aet on foot'' by Uenaral raradaa. Suoh nay be tha oondltion of Infeourtty of tha praaent government. There can be no doubt that tha peaoeable and welldisposed Inhabitants of Mexico ara eonvinoed that it la the true interest of their country to oonoludaan honorable peace with tha United Statea, but the apprehension ofbaoomlng the victims ot some military faotion or usurper may hava prevented them from manifesting their feelings by any publla aot Tha removal of anv Kuch apprehension would probably oauaa them to apeak their sentiments freely, and to adopt the measures necessary for the restoration of peaoe. With a people distracted and divided by contending factions, and ft government subject to ecnatftnt changes, by successive revolutions. tliu continued successes of oar arms may fail to seoure a satisfactory peace In suoh event, it may become proper for our commanding generals in the field to give encouragement and insurance* of protection to the friends of dwco in Mexico iin the establishment and inaiuteuanoe of a free republican government of their own choice, able and willing to oondude a peace which would be just to them, and secure to us the Indemnity we demsud This way tjcomn the only mode ol obtaining* such a peace. Should auult be the result, the war which Mexico had forced upon us. would thud be converted into an enduring blessing to herself. After finding her torn and distracted by fsotlons, and ru'.ed by military usurpers, wu should then leave her with h republican government iu the enjoyment of real Independence, and domestic peace and prosperity, performing all her relative duties iu the great family of uatlons, and promoting her own happiuues by wise laws and their faithful execution. If, after allording this encouragement and protection and after all the persevering and sincere efforts we have made, from the moment Mexico commenced the war. and prior to that time, to adjust our differences with ber, we shall ultimately fall, then we shall have exhausted all honorable means In pursuit ot peac, and must continue to cooupy her oonatry with our troops, taking the fall measure or indemulty into our own hands, and mast enforce the terms which our honor demands. To act otherwise, in the existing state of things In Mexico, and to withdraw our army without a peace, would not only leave all the wrongs of whioh we complala unredressed, bat would be the signal for new and fierce civil dissensions aad new revolutions ?all alike hostile to peaceful relations with the United States Besides, there is danger, if our troops were withdrawn before a pesca was concluded, that the Mexican people, wearied with successive revolutions, and deprived of protection for their persons and property, might at length be inclined to yield to foreign influences, and to cast themselves Into toe arms of some European monarch for proteotlon from th? anarchy and suffering which would ensue This, for our own safety, and In pursuance of onr established policy, we should bu aim palled to resist. Ws ooul.1 uev r .iouvut that Mexico should 1m Kits ?nn??rUd Utn a monitrnhv iTQViiriitsfl hir a fnr?*itrn prtno* Mexico li our near neighbor, and her boundaries are oo-terininous with our own through the whole extent auroflH the North American aon'lnent, from ocean to ocean. Di>th politically and commercially, we have the deepest interest In har regeneratloo and prosperity. Indeed. it Is impce?lble 4hat. with an* just regard to our own fftf>ty, w? (mil erer become indiarmnt to har fata. It may ba that tha Mexican government and paopla bare misconstrued or misunderstood our forbearanoc, and our nlyeote, in dceirlug to m?in'ud? ao nwioalile adjuMment of the existing di(T-rencej between tha two countrle* They may have supposed that wa would submit to terms degrading to tha nation ; or they may have drawn f ile inferences from tha supposed division of opinion in the United States on the subject of tha war, and may have calculated to gain much bv protraotiug It; and, Indeed, that we might ultimately abandon it altogether, without insisting on any Indemnity, territorial or otherwise Whatever may be the false impressions under which they have acted, the adoption and prosecution of the energetio policy proposed mult soon undeoelve them. In the future prosecution of the war, the enemy must be made to teel its pressure more than they hare heretofore done. At its commencement, it was deemed proper to conduot it in a spirit of forbearance and liberality. With thia end in view, early measures were adoDted to conciliate, u tar as a *t*t* of war would permit. th? oan of the Mexican population; to convince them that the war war waged not against the peaceful Inhabitants of Mexico, but against their falthleM .government, which bad commenced hostilities; to remove from their minds the false Impressions whiob their designing and interosted rul?r? had arttully attempted to make, that the war on our part wti one of conquest. that It wan a war against their religion and their churches, which were to j be deseorated and overthrown: and that their right* of person aud private property would be violated. To re- I move these false impressions,our commanders in the field ! were directed scrupulously to reepect their religion, their churches, and their cburch property, whioh were | In n? manner to bo violated , they were directed also to i ri'rtpcct the rights of persons and property of all who i should not take up artn* ugainst us. Assurances to this eilxct were given to tha Mexican j people by Major General Taylor, In a proclamation is- i sued In purtuanoe of instructions from the Secretary of l War, iu tha month of Juue, I1M8, aud again by Major | General Scott, who acted upon his own convlellqns of the propriety of issuing it In a proclamation of the 11th of May, 1847. In thl* spirit of liberality and conciliation, and with a view to prevent the body ot the Mexican population from taking up arms against us. was the war eonduuted on our part. Provisions and otnar supplies furnished to I our army by Mexican citls^ns were paid for at fair and liberal prices agreed upon by the parties After the i lapse of a few months, it became apparent that these assurances. and this mild treatment, had failed to prodnoe the dt.sired effect upon the Mexloan population. While tha war bad been conducted on our part accord log to the most humane and liberal principles observed by olviltsed nations. It was waged la far different spirit on the part of Mexico. Not appreciating our forbearance. tlij Mexican^ people generally became hostile to the United State*, itud availed themsejvea of every opportunity to oomralt tha most savage excesses upon our troops. Large numbers of tha population took up arms, and, eugaglng in guerilla warfare, robbed.and murdered i in the most cruel manner individual soldiers, or small I partis*, whom acoident .or other cause* had aeparated I irom the main body of our army; band* of guerlllaro* and robbers Infested the roads, harasse. our trains, and, whenever It was In their power, out off our supplies. The Mexicans having thus ahowu themselves to be Vi/.lltr In/ie r.d I 1 ? a f nrnrartinllnrf mtv> tn*KMBi>* <ani4 liberality. It wa* deemed proper ta change the rnusur of conducting the war, by making th?m feel iu preaiure aooording to the u*ages observed under limilar oircumtUntw by all other civilised natlona. Accordingly, *? early as the tw*nty-*eoond of September, 1816, instructions warn given by th? Seoretery of War to Major (Jan. Taylor to draw supplies" for our army " from the enemy, without paying for them, and to requlra contributioiia for Ita support," if in that way be wan satisfied ha could ' gat abundant anppllaa for bia forces " In diracting the execution of these iurtiuctlon*. much waa neceasarlly l?f: to th? discretion of the coininanding officer, who wu beat acquainted with tha clroumitanoe* by whloh he w?a aurroundad, the want* of'he Army, and the practicability of enforcing the meaI ure. Oen. Taylor, on tha twenty-sixth of October, 1846, replied, from >lont?r*y, that "it would have boen Impoaalble hitherto, and i* ?o now, to auataln tha army to any extent by forced contrioutloos of inoney or *uppll**/> For the reaaon* aaaigned by him, ha did not adopt thn policy of hia Instructions, but deolared hit teadlne** to do ao, " should the army, in lta future operation*, reach a portion of the country which may be made to supply the troopa with advantage '' He continued to pay f-.r the artiolft* of aupply which were drawn from the ene- j my'a couutry. Similar instruction* wera Issued to Major General Soott on the third of April, ltU7. who replied, fioiu Jalapa, no the twentieth of May, 1347, that, if It be expected that "the army ia to aupport Itieif by fneed ooutrlbutiona levied upon the couutry, we may ruin and exaaperate the Inhabitant*, aud tlarre ourselve* " The same diacretlon waa given to him that had beeu to to (len Taylor In thla reelect. Oen rtcolt, for the re*, aon aaaigned by him, aleo continued to pay for the artide* .of aupply for the army which wete drawn from the enemy After the ariuy ha I reached the h?*rt of the most wealthy portion of Meilno, It waa suppoaeJ that tlie obataciea which had before that Hue prevented It would not be auch aa io render impracticable the levy of forced contribution* for ita auppor . an l on the firft of He i< tern her, and again on the atxth of October, 1847 the or<i?r waa rapaated l.i (le?p?toHe* addreaeed by the Heoraiary of War to Oeneral Hoalt. a.jd hi* a'tei^on w?* again called to the importnuce of maain the *u< tny l a.r the burdene of tlie war by requiring theui to lur bit.i the mean* of Mippoitlog o*r ainijr, and be aai llreotad to adopt tDi* policy anieae, b? doing *0 th. re waa danger of depnving the army of the neoa**ery auppliea I'Opiefl of theaa despatch#? wera for wa.de J to Oauwai Taylor for hi* government. fERA 1847. On th* thirty-ftm of March laat, I muhJ an order to ba laauvd to our military and naval oommandar* to levy tnd collect a military contribution upon all tMNlliii nmhudlM whioh might enter any or th* porta of Maxloo la our military occupation. and to apply ?uah oontrlbutlona toward* defraying tha *xpen**a of the war. By rlrtua of tha right of oonqu**t and tha lav* of war. tha oooquaror, oooaultlng hi* own eafety or convanUnee. ay atthcr axoluda foreign wm?rM altog*th*r from all auoh port*, or permit it upon such tana* and oondition* aa h* mar prcaariba. before tha principal port* of Mrxioo war* blockaded by oar nary, th* rt?nu? dart Tad from impost datiaa, undtr th* law* of Mexico, waa paid Into th* M*xl*an trraaury. After th? porta bad fallen into our military po**?Mion, th* blockade wa* ralaad. and oomm*ro* wltnftbem p*rmitt*d upon prescribed carina and condition*. They w*r* openrd to th* trad* of all nation* upon tha payment of dnti** mora moderate In their amount than those wfaloh had been previously levied br .Mexico; and the revenue. which tu formerly paid Into the Mexican treasury, waa directed to be collected by oar military Mid naval officer*, and applld to tbe on of our army and nary Car* waa tak?n that the offloers, loldiera and aailore of oar ?rmy and navy should be exempted from the operation* of the order; and aa the merchandise Imparted upon which the order operated must be consumed by Mexloan cltliens. tha contributions exacted were, in effect, the selsure of the publio revenue* of Mexico, and the applioatinu of them to our own usa. In dttaoting this measure, the object was to compel the enemy to oootribute, as far as practicable, towards the expenses of the war. For the amount of aoatributlons whloh have baen levied In this form, 1 refer you to the accompany log repott* of the Secretary of War, and of the Secretary of the Navv. by whloh it appear* that a sum exceeding half a million of dollars has been ooUeotad. This amount would undoubtedly havu been much larger but for the dtffloulty of keeping open communication* between the ooast and the Interior, so as to enable the owner* of the merchandise Imported, to tran*port and vend it to the Inhabitants of the oountry It I* confidently expected that this dtffloulty wiU, to a great extent, be soon removed by our Inortatcd force*, whloh have been sent to the field. Measures have recently been adopted, by whloh the internal as wall as externsl revenues of Mexico, In all plaoes la our military occupation, will be n?l/.?d and appropriated to tha usa of our army and navy. Tbe polloy of levying upon tha enemy contributions In every form, consistently with the Taws of nations, which it may be practicable for our military oom menders to adept, should, in inv judgment, be rigidly enforced, snd orders to this effeot have aooordiugly been given. By such 11 policy, at the same time that our ova treasury will be relieved from a heavy drain, the Mexican people will be made to feel the burdens of the war, and, consulting their own interests, may be induced the more readily to require their ruler* to accede to a just peaoe. After the adjournment of tbe last m-rnlon of Congress, event* transpired in the prosecution of tbs war whloh, in mjr judgment, required a greater number of troups in the field thun bad beeu anticipated The strength of lh? army waa accordingly Increased by "itsceptlng'' the ervlocs of all the volunteer force* authorized by ttie act of tbe 13 th of May, I$40, without putting a construction on thataut, the correctness of which waa seriously queltioned. Tbe volunteer foroea now in the field, with thoae whloh bad been "accepted," to "'serve fur twelve m on the." and ware (Uncharged at the end of their term of service, exhaust the fifty thousand men authorised by that act. Hud it been ulnar that a proper conatructlon of the aot warranted it, the Mrviees of an additional number would have been called for and accepted; but doubt* eilsting upon thU point, the power waa not *xerclaed. It ia deemed important that Congress should, at an early period of their session, oonfer tb? authority to ralsu an additional regular force to aerve during the war with Mexloo, and to be diauharged upon tbe conclnslon and ratification of a treaty of peace. I invite the attention of Congress to tbe views presented by the Secretary of War in bli r.port upon this subj-et I recommend, also, that authority be given by law to call for and accept the service* of an additional number of volunteer*, to be exercised at *unh time and to inch extent as tb* emergeuolea of th* service may require In proseonting the war with Mexico whilst th? utmost care ha* been taken to avoid every just mum of complaint on tba part of natural nation*, and none hat been given, liberal privilege* have been granted to their commerce in th* port* of the enemy in our alUtary occupation. The difficulty with the Braxillan government, which a I on* tlnie threatened to Interrupt the friendly relation bitWMn the two oountrlee, will, 1 truat ba sp??dlly ad juaWd i have received Information that an envoy as traordiaary and minlsUr pl?ulpot?ntlary to tbo I'aUei Hut.'S will Kb Itly h<? uppnlub-d ny liie Imperial Majesty and It is hoped ba will eoma instructed and prepared t< adjust all remaining differenoea between the two govern ' nifuta iu a manner acceptable and honorable to both li 1 the mvanUoiH.I hare every reaaon to bellavethat nothing will ocour to iatarrupt our amioabla relations with bra til | It baa bean my constant effort to maintain and cultivate tb* moat intimate relations of friendship with all tbo Independent power* of Mouth America; and thin Kolicy haa bean attended with tha happiest result* It i true, that the aettlemant and payment of many just claiui* cf American ciliaeDM agMnsi these nations havi' baan long delayed. The peouilar poiltion in which they bav* been placed, and tba dealra on th? part of my predecessors, as well aa myself, to grant thacn tha utmoat Indulgence, have hitherto prevented these claims from being urged in a manner detnnnded by strict justice Tha t me haa arrived when they ought to be finally adjusted and liquidated, and efforts arc now making for that purI posa. I It is proper to Inform you that the government of I'ern | hw in go jd faith paid the Qr?t two initalment) of tb? In > demnlty of thirty thousand dollars each, and the greater portion of the Interest du* therein, la execution of the convention between that government and the I'oited States, the ratifications of whioh were exohtnged al Lima on the thirty- tlrat of Ontober. 18-ltl The Attorney (ieneral of the L'nlted Stated, early In August taut, com pleted the adjudication of the claims under this oonven 1 lion, and maiU hla report thereon, In pursuance of tlti hot of the eighth of August, I84B The sums to whlcl the claimant* are respectively entitled will b* paid on da ni&nd at the treaaury. I invite the early attention of (' ongress to the present condition of our citisms in Chin*. Under our treat} with that power. Atnerionn citiiens are withdrawu from the jurisdiction, whether civil or criminal of tb< Chinese government, and placed under that of our public functionaries in that country. By these alone ran our oltiz'n* be tried and punlsned for the oommlsslon of any crime; by these alone o n question* bo decided between them, involving the rights of person and pro perty: and by these alone ran contracts be enforced into whloh they may bare entered with the oitiieun or iuUjfot? of foreiga powera. The merchant vessels ol the 1,'nlted States lying Id the water* of the Are porta ol China open to foreign commerce are under the exclusive jurladictlon of officers of their own government. Until Congress Khali ettabllsh competent tribunals to try and punish orimea, and to exeroise jurisdiction In civil caaei in China, Ameiloan citizens there are subject to no law whatever Crimea may ba committed with Impunity and debts may ba oontraoted without any meana to eu force their paymmt. Inconvenienoea have already refultei frem tha ouiasion of Congrers to legislate upon tha subject, and till greater are apprehended Th? British authorities in China hava already complained that thia government haa not provided for the punish ment of orimea, or tha enforcement of contraota against American eltlieua In that oountry, whilat their govern ment haa eatabltehed tribunals by which an Aiaerloai cltiisn can recover dsbta doe from Brltlsn subject' Accuatomed aa the Chinese are to aummary juttloe they oould not be made to oompreheud why crimlnali who are oltiiena of the United States should eaoape wltl I impunity, In violation of treaty obligation*, whilat thi punishment of Chinese, who had oommltted any crlmi ugtinat an American citlien, would be rigorously exacted I oieed, the consequence* might bo fatal to Americat oltlzHus lu China, should a flagrant crime be committed hv anv oue of theui upon a Chinese, and shnuhl trt^l >m pua1ibm?.<t not follow according to the requisitions o ih? truaty. 'l'bis might disturb, If not destroy, ou friendly relations with that empire, and came an Inter ruptlon of our valuable commerce Our treaties with the Sublime Porte, Tripoli, Tunll Morooco, and Muscat, also require the legislation c ('ODgress to carry them Into execution. though the n? cetsliy for imm?dlat? action may not bs 10 urgent at li regard to China. The, Secretary of State has submitted an eatlmate t defray the expense of opening diplomatic relatione will the Papal States The Interesting political event* no? In progress 1b theae States, aa well as a juet regard to 0111 commercial Interests, have, in my opinion, rendemi euch a measure highly expedient Ketlmatee have also b en submitted fnr the outfits au>l salaries of charges d'affaires to tb? republics of Bolivia, Guatemala, and>'.cuador The manifest importance of cultivating the moat triendly relations with all the Independent btates upon this continent has induoed me to recommend approprlatioes necessary for the maintenanoeof these missions I recommend to Cor.gress that an appropriation be made, to be paid to the rt yen tab government for the purpose of d 1str.button among the claimants In "the Arointed case." I entertain the conviction that this Is due to Spain under the treaty of the '^Oth of October, 1794; and, moreover, tbat, from the earnest manner In whloh the claim aoutlniie* to be urged, ?o long a* It tball remain uoaattled, It will b? iourtM of Irritation and dlncord between the two oountrle*, whloh may prove highly prejudicial to the Interest* of the l.'nlterl Malea Oood policy, no Je*? than a falthlul compliance with our treaty obligation*, require* that the lucoualdetable appropriation demanded rhould be made A detailed *tatem??nt of the condition of the finance* will be pre*ented In thn annual report of the Secretary or ilia Treaaury Thn Import* for tha la?t flacal y?ar, ending on the anib of June, 1847, Were of tha Talue of on* hundred and forty-alx million, fWe hundred and forty-tire thouaand, (Is hundred and tblrty-aight dollar*, of which the aniiunt exported wa**lgbt million ,elev?n tbuuaand. one hundred and flfty-algnt dollar*. learmg one hundred and ibirty eight million Ave hundred ana tblrtyfourg Ihouewud, f?ur bundrrd and eighty dollam in the 04'Uniry fur doniea>.lc us* The ?alu? ul' the eiporta for the lame period, waa one hundred and flfy igbt million, elx hundred and for y-elgbt thouaand, an hundred and twenty.twn dollar*; of whioh one huudred and fifty million,?lx hundred >nd thlny *?T?n thousand, four huudred aud tlxtyfcnr dollar*, conaiited of do ratatic prWWjrtWft*. elgr.t million, ?|e?en thouaand, one hnndred and flfy eight dollar*, ol foreign article* ... 'Che r< ceipia into the tr?a*ury for the iiou period auiou .tad to i w?ntyn? million turee liuudrrd and forty fix th.u aiid acTro hundred aud ninety dollar* and thirly-taren nta, of wbtcn there wai deiWed fiom nuitoin* twenty-three million Karen hundred aud fortyBe?en thoiwaud eight liuujred aud *txty four dollar* and ?Uiy-*u tenu, from mum ol public Una*, two nil LD. rriea Two O?m. Han lour hun.?*aj ud olu?ty ?l?lit tboiiui thfM kM drad ?nJ tbirtyUf* dollar* and ttanlj oan t*, tod (Mb lnoidental and mliolUaoout touroa*, on h?n4r#4 thoaaand fl?? hundred tod Mvanty dollar* and flftj-OM onti Tha last SkiI ywr, dnring whiah this umit wii raoaWtHl. braced Av? months nodar Um ofwitloi of tha tariff aot of 184U, and tovan month* during which tha tariff a?t of 1#4? wa? In fore* Daring th* At* month* undar tha aot of 1M3. tfca amount raaatvad tnn ouatom* *11 aarao million eight hundred and fcrtj-tvo tbounaod thraa hundred and *lx dollar* and nlirtj oanta. a?d during tha **ran month* und*r tha act nf lUirt tha amount raoeirad va* flltaan million nina kaa dred aod At* thousand five hundred and filty-sou* dollar* Ud NTMtf-lil OWtl The net rt'toU" from custom* daring the year ndIng on ths Arst of December, l?4?, bains *he luljatt under tba operation of the tariff not of 1843,was twenty two million nlna hundred and srventyone thoamad four bundrad and three dollar* and tea oaatt; ud tba nat revenue from cuntoms during tba yoar oidlai on tba Ar*t of December, 1847. being tha firrt yoM nndar tba o pa ration of tba tariff not of 1844, -was about thirty ona million Ave bnndrad tbouaand dollar*; being aa la oraaaa of ravanua for tba first mr undar tba tariff oat or 1848, of mora than eight million lira baadrod thousand dollar* over tbat ol tba Uat year undar tba tariff of 1843. Tba expenditure* during the fiscal year ending oa tba tblrtlatb of J una last, vera fifty-nine million foar baadrad and fifty-one thousand ona bundrad aad seveatyseven dollars and sixty-Ave rant*; of wbiob tbrao million fire hundred and twenty-two tbouaand and eightytwo dollar* a d thirty-seven oeuta was oa aoooaat of payment of principal and intercut of tha publio debt, including treasury uot?e redeemed and not funded. Tha expenditures. exclusive of payment ef publio dobt, WOT* tlfty-tive million nine hundred aad twentv-niao thousand and ninety live dollar* and twenty-eight oeats. It i* estimated that the receipts into the treamtw for the ilkoal v?ar ending on tha thirtieth of Juae. 1848, including the balanoein the treasury on tha first of July laat, will amount to forty-two million eight huadrod aad elghty-ilx thousand five hundred and forty-fiva dollars and eighty eenta, of which thirty-one mllUoa, It la estimated, will be derived from custom*; three million ftvo huadrod thousand from tha sals of tha public laad*; four hundred thouiand from incidental aouroo*. lnoladtng salea made by the Solicitor of tha Treasury; aad six mllliea two hundred and eighty-five thousand two hundred and ninety-four dollar* aad Afty-Avo oeats from loan* already authorised by law, which, togotbsr with ths balanoe In the treasury on the first ot July last, mako the sum estimated. The expenditures for the same period, If peace wttb Mexico ahall not be concluded, and the army shall be incmaHea as i? proposeu, wui amount, including me n?oessary paymrtU on aoconnt of principal and interest of the public (Jeht and treasury note*, to fifty-eight million *ix hundred and fifteen thousand six hundred and sixty dollari and seven cents. On tha 1st of the present month, the amount of tha public debt actually Incurred, including treasury note*, was torty-tlTe million six hundrud and fltty-niao thouaand ail hundrad and fifty-nine dollars forty oenta The public debt due on the 4th of Mnrob 1946, including treasury notes, waa seventeen million sevun hundred and eighty-right thouaand seven hundrad and ninsty-nlne dollara and sixty two oenta ; aud consequently the addition made to the public debt stnoe that tima Is twentyseven million eight hundrad nnd sovsnty thouaand eight hundred andTlt'tv-nlue dollars and seventy-aigbt oenta. .Of th? loan of twenty-three million, authorised by the aet of the 'Jttth of January, >?tf, tha sum of flva million wis paid out to the public oreditors, or exchanged at pir for sprole ; the renmlulng eighteen million waa offered for sperU to the highest bidder not below par, by an advertisement Issaed by tbe Secretary Of tha Treasury, and published from tha 9th of Kebiuary until the 10th if April, 1817, when it wan awarded to the several highest bidders, at prem'uiDH varying from one-eighth of one par a*ut to >? p-r eantj above par. The premium has b-nu paid into ttie treasury, and tha sums awarded deposited in specie In the trcaiury as fast as it was required by the wants of the Government. To meet the expenditures for the remainder of tha present and for the next fiscal year, ending on tha thirtieth of June, 1448, a further loan, in aid of tha ordinary revenues of the government, will ha nseaaaary. Retaining a sufficient surplus in tha traaaury, tha loan required for the remainder of tb* present fiscal y oar will be about eighteen million five hundrad thousand dollars if tha auty on tea and coff?a be imposed, and tha graduation of tha prlee of tha pablic lands shall br t sad* st an early period of jour c-ulon, m reoomg mitDded, the loan for the prearnt flucal Dtf IwnUuoed to seventeen mill'Oni of dollar* Tbe loan nay b? further rod need by whatever amount of expenditures j can b? fared by military oontrlbu'lon* oollaotad ia Moxleo. I be moft Timorous measure* for the augnen j taiioo of tbe*e contribution* have been directed, and* rery oontiderable *um ia expected from that aouroa. Ita , amount cannot. how??i>r, b? calculated iltb My oartaioly It If n commended that tbe loau to ba mada b? autborlied upon the tame term*, and for tba aama time, as tbat which wax auih'.riied uodar the provision* of tb? art of tba twenty-eighth of January, 1847. Should the war with Mexico ba oon'inued until tba thirtieth of Jmm. 184i?, tt it aitlmaUd tbat a forthar loan of twentr million Ova hundred thousand dollara will ba required for tha flsoal year ending oa tbat day, lu ca?a nu duty be iuipoaed ou t?u and coffae, and tha public land* ba not rediced and graduated la prioa aad no military oontributiona ahall ba oollaotad in Maxioo. If tbe duty on taa and coffea ba imposed. and tba ba raducad and graduated in prioa. aJ propoaad. tha toaa may ha tadnoed to eeeentaen million* of dollar*, aad I will ba (ubjtot to ba still further raduoad bj tba amonnt of the military contribution* whloh may be oollaotad la Mexico It 1* not proponed, howeter. at preaent. to ask Congre** for authority to negotiate tbi* loan for tba ntixt flsatl year, an It 1* hoped that the loan aakad for tbe remainder of the pre*ent ll-cal year, aided by mill, tary coatrlbution* whloh may ba collected in Mexico, ! may be (ufflclent. If, oontrary to my expaotatioa, there hould be a neoeMlty for It, the fact will be oomatual'f cated to Cou/re** in time for their aotloa daring tbe million of dollar* of tbU amount b? needed before tha ? meeting of the session of Congreuln DMimbw, ims. j The art of the thirtieth of July, 1846. " reducing thu dutie* on import*," ha* been tn ioroe ilnoe the ft rat of Deoember la-t; and I am gratified to state that all tha beneficial effects which were anticipated from II* operation hare been folly realised. The public mme deL rived from customs during the year ending oa tha first , of December, 1B47, exceeds by more than eight biiiimm ot dollar* the amount received in tha preeisdlnc year ! under the operation of the act of IS4j, which waa superseded and repealed by it 11? effects are vlslule id tha I tfreat and almost unexampled prosperity whloh praralla in every branch of business. While the repeal of the prohibitory and restrictive du tl?s of tb*act of 1W 1*2, and the substitution in thair place of reasonable revenue ratea leviad on artloles imported r according to their actual value, has inoraaaad tha ravt , una and augmented our foreign trade, all tha great Interests of the country have been advanced and pro| mo ted , The groat and Important interests of agrioulture, , which had been not only too much neglected, but actually taxed under the proteotlve policy for the benefit of other interests, have been relieved of tha burdens which that policy Imposed on them ; and onr farmer* and ( planters, under a more jnst and liberal commercial policy , are finding new and profitable markets abroad tot their augmented products Onr commerce is rapidly Increasing, and la extending , more widely tha circle of International axohangaa Oreal as has been tha Id crease of our Imports during tha past | y?ar, onr export* of domestic product* sold u> foreign market* have been still greatar. Onr navigating interest 1* eminently prosperous The ' number of vessels built in the United States ha* bean , greater than during any preceding period of equal length , Large profits have been derived by thoae who have cont structed aa w?ll as by those who have navigated tham. Should the ra'lo of fnorease In the number of onr mar, chant vessels be progressive, and be 4* great for the fu [ ture aa during tb? past year, the time I* not distant I when our tonnage and commercial marine will be larger { than that of any other nation in the world. r Whilst the intereeta of agriculture, of nommaroa, and of navigation have been enlarged and Invigorated, it Is highly gratifying to observe tbat our nunuffcoture* are , also in a prosperous condition. None of the ruJnoaseffrets upon thh Interest which were apprehended by some, as i be result of the operation ?f the rnvenne ays u tem established by the act of 184?, Dave been axpe' eneed. On the contrary, the number of nanufhnto an J ttoearaorot of capital In rested in tham, Ja ste and rapidly Increasing, affording gratifying proof' I Amerloan onterprssa and skill employed in tula b of domestic Industry, with no oth*T advantage. I those fairly and incidentally accruing from a jus' of revenue duties, are abundantly able to meat I fully all competition from abroad, and still d and rrinunerating pronts While capital invested la mtnafaetarM > adequate noil fair profit* under the new syi wegee of labor, whether truployed In tnauufactm culture, commerce, or navigation, have been augi The tolling million*. whoie dally labor furnish, apply oi ftMKl and raiment, and all the nec. tearU comfort* of Ufa, are receiving higher wages and h. steady and peloaanenl employment, than In any oth country, or at any prevloas period of oat own history. Mo auoeeeeful h?va bean all branches of our ladtMtry, that a .orelgn war, which generally dimlniahei the re sources of a nation, has la uo esteutiaf degree retarded o?r onward profreaa, or eheokad oar general prosperity. With *urh gratifying svidenoee of prosperity, and of the eueoewful operation of ihe revenue act of IH46, every consideration ? f public polley recommend* that It lull remain Unchanged It U hoped that I ha system Of linpoet dutiaa which it eetabitshed may be regarded aa the permanent policy of tha country, and that thi great Interests aft otrd by It may not agaia be subject to be . injuriously disturbed, aa they have heretofore been, by licjueut aid sometimes sudd n change* Kor the purpoae of Increasing tlia revenue, and without. changing or modi lying tiia rat** Impoeed by the Act if i 84b on the dutiable article# embraced by lie provision*, I again recommend to your favorable consideration tue egpeuienoy of levy lug a revenue daty on tee and coffer. The policy which exempted these articles fro? diry ourlug p?ae*, and whau Ihe vevaaoe to be derived from thein was not needed, caaaes to aslst wh?n the nuuiitry Is engaged In war, and t centres tha use of all Its available tee uro.s It Is a lax wnlch would be so geaeral y diffustd mnm.g th- people, that It would be fait o,4>r*Miv>-iy by noua. aud ba Complained of by none U Is l?li?t ed tha'. there ara not. In the list of Imported article*, an? whtoh are wore properly the subject of war du ie* than tea and coffee It Is "itimeted that tmee millions of dollars would be derived aouuall) by a moderate duty Imposed on tnese ' artitlae bhould Congress avail Itself of this additional source oi pevenoe, not only would the amount of the public loan reudered aeoeleary by the war with Mexico be diminish

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