PRESIDENT'S MESSAGE To the 1st Session of the 32d Congress. Fellow Citizens of th e Senate and of the House of Representatives : I congratulate you and our common coo stitnency upon the favorable auspices under which you meet for your first ses sion. Our country is at peace with alJ the world. The 'agitation which, for a time, threatened to disturb the fraternal relations which make us one people, is fast subsiding; and a year of general prosperi ty and health, has crowned the nation with unusual blessings. None can look back to the dangers which are passed, or forward to i lie bright prospect before us, without feeling a thrill of "ratification, at the same time that he mut with a grateful sense of be impressed our profound obligations to a beneficent Providence. wlto-e paternal care manifest in the happiness of this highlSavored land. Since the close last Congress, certain Cubans and other foreigners resi dent in the United States, who were more or less concerned in the previous invasion of Cuba, instead of being discouraged by its failure, have again abused the hospitali ty of this country, by making it the scene of the equipment of another military expe dition against the possession of her Catho lic majesty, in vhich they were counte nanced, aided and joined by citizens, of the U. S On receiving intelligence that such designs were entertained, I lost no time in issuing such instructions to the proper officers of the U. States as seemed to be called for by the occasion. By the proclamation, a copy of which is herewith 'submitted, 1 also warned those who might be in danger of being inveigled into this scheme ot its unlawful character, and of the penalties which they would incur. For some time there was reason to hope that these measures had sufficed to prevent any such attempt. This hope, however, proved to be delusive. Very early in the morning ot the third of August, a steamor called the Pampero departed from New Orleans for Cuba, having on board up wards of four hundred armed men, with evident intentions to make war upon the authorities of the island. This expedition was set on foot in palpable violation of the laws of the U. Statrs. Its leader was a Spaniard, and several of the chief officers, and some others engaged in it, were foreigners. The persons composing it, however, were mostly citizens of the U. States. Before the expedition set out. and probably before it was organized, a slight insurrectionary movement, which appears to have been soon suppressed, had taken place in the eastern quarter of Cuba. The importance of this movement was unfortunately so much exaggerated in the accounts of it published in this country, that these adventurers seem to have been led to believe that the Creole population of the island not only desired to throw oft the authority of the mother country, but had resolved upon that step, and had begun a well-concerted enterprise for effecting it. The persons engaged in the expedicion e- c gciiiri aiij young anu ill informed. The steamer in which they embarked left New Orleans stealthily and without a clearance. After touching at Key West, she proceeded to the coast of Cuba, and, on the night between the 11th anil I2th of August, landed the persons on board at Playtas, within about twentv leaguesof Havana. The main body of them proceeded to, & took possession of, an inland village, six leagues distant, leaving others to follow in charge of the baggage, as soon as the means ot transportation could be obtained. The latter, having taken up their line of march to connect themselves with the main bodv. and having proceeded about four leagues into the country, were attacked on the morning of the 13th bv a bod y of Spanish troops, and a bloody conflict ensued; after which retreated to the place of disembarca tion, where about fifty ot them obtained boats and re-embarked therein. They were, however, intercepted among the keys near the shore by a Spanish steamer cruis ing on the coast, captured anil carried to Havana, and, after being examined before a militury court, were sentenced to be publicly executed, and the sentence was carried into effect on the 16th of August. On receiving information of what had occurred. Commodore Foxhall A. Parker was instructed to proceed in the steam frigate Saranac to Havana, and inquire into the charges against the persons ex ecuted, the circumstances under which they were taken, and whatsoever referred to their trial and sentence. Copies of the instructions from the Department of State to him, and of his letters to that Depart ment, are herewith submitted. According to the record of the examit.a tion, the prisoners all admitted the offences charged against them, of being hostile in vaders of the island. At the time of their trial and execution the main body of the invaders was still in the field, making war upon the Spanish authorities and Spanish subjects. A fter the lapse of some days, being overcome by the Spanish troops, they dispersed on the 24th of August; Lopez, their leader, was captured tome days after, and executed on the 1st of September. Many of his remaining fol lowers were killed, or died of hungar and fatigue, and the rest were made pri soners. Of these, none nr r t n hVf been tried or executed. Several of them were pardoned upon application of their friends and others, and the rest, about one hundred and sixty in number, were sent to Spain. Of the final disposition made of these we have no official information. Such is the melancholy result of this illegal and ill-fated expedition. Thus, thoughtless young men have been induced, by false and fraudulent representations, to violate the law of their country, through rash and unfounded expectations of assist ing to accomplish political revolutions in other States and have lost their lives in the u ndertaking. Too severe a judgment can bardly be passed, by the Indfgnant I sense of the community, upon those who, k: nn k(. : f..-.., .i u i i n-inj; wciict iiHuiuitu iiiciuaeivesi nave yet led away the ardor ot youth and an ill-directed love of political liberty. The correspondence between this Government and that of Spain relating to this transac tion is herewith communicated. Although these offenders against the laws have torieiteti the protection of their coun try, yet the Government may, so far as is consistent with its obligations to other countries, and its fixed purpose to maintain and enforce the laws, entertain sympathy for their unoffending families and friends, as well as a feeling of compassion for them selves. Accordingly no proper effort has been spared, and nne will be spared, to procure the release of such citizens of the U. States, engaged in this unlawful enter prise, asaie now in confinement in Spain ; but it is to be hoped that such interposition with the government of that country may not be considered as affording any ground of expectation that the Government of the United States will, hereafter, feel itself under any obligation or duty to intercede for the liberation or pardon of such per sons as are flagrant offenders against the law of nations and the laws of the United States. These laws must be executed. If we desire to maintain our respectability among the nations of the earth, it behoves piS to enforce steadily and sternly the neu trality acts passed by Congress, and to follow, as far as may be, the violation of those acts with condign punishment. But what gives a peculiar criminality to this invasion of Cuba is, that under the lead of Spanish subjects and with the aid of citizens of the United States, it had its origin, with many, in motives of cupidity. Money was advanced by individuals, pro bably in considerable amounts, to pur chase Cuban bonds, as they have been called, issued by Lopez, sold, doubtless, ata very large discount, and for the pay ment of which the public lands and public, property of Cuba, of whatever kind, and the fiscal resources of the people and gov ernment of that island, from whatever source to be- derived, were pledged, as well as the good faith of the government expected to be established. All these means of pay ment, it is evident, were only to be obtained by a process of bloodshed, war, and revolution. None will deny that those who set on foot military expedi tions against foreign States by means like these, are far more culpable than the ignorant and the necessitous whom they in duce to go forth as the ostensible parties in the proceeding. These originators of the invasion of Cuba seem to have deter mined, with coidness and system, upon an undertaking which should disgrace their country, violate its laws, and put to hazard the lives of ill-informed and deluded men. You will consider whether further legisla tion be necessary to prevent the perpetra tion of such offences in future. No individuals have a right to hazard the peace ot the country or to violate its laws upon vague notions of altering or reforming governments in other States. This principle is not only reasonable in itself, and in accordance with public law: but. tt Antraltad mitt the foil p ft of iKor nations as well as our own. But whih such are the sentiments of this Govern ment, it may be added that everv ind pendent nation must be presumed to be ..kl- i. .i .r i r auie 10 ueieiiu us possessions against un authorized individuals banded together to auacK inem. i he Uovernment of the u. Mates, at all times since its establish. ment, has abstained and has sought to restrain the citizens of the country! from entering into controversies between "other a . a ... powers, anil to observe all the duties of neutrality. At an early period of the Go vernment, in the administration of Wash ington, several laws were passed for this purpose. The main provisions of these laws, were re-enacted by the act of April, 1818, by which, amongst other things, it was declared that if any person shall, with in the territory or jurisdiction of the U. States, begin, or set on foot, or provide, or prepare the means for any militarv ex pedition or enterprise to be carried on from thence against the territory or domi nion of any foreign prince or State, or of any colony, district, or people with whom the U. States are at peace, every person so offending shall be deemed guility of a high misdemeaner, and shall be fined, not exceeding three thousand dollars, and imprisoned not more than three vears. and this law has been executed and "enforced, to the full extent of the power of the Gov ernment, from that day to this. In proclaiming and adhering to the doc trine of neutrality and non-intervention, the U. States have not followed the lead of other civilized nations, they have taken the lead themselves, and have been follow ed by others. This was admitted by one of the most eminent of modern British statesmen, who said in Parliament, while a minister of the crown, "that, if he wish ed for a guide in a system of neutrality, he should take that laid down by America in the days of Washington and . the sec retaryship of Jefferson ;' and we see, in fact, that the act of Congress of 1818 was followed, the succefeding year, by an act of the Parliament of England, substantial ly the same in its general provisions. Up to that time there had been no similar law in fcngland, except certain highly penal statutes passed iu the reign of George II., prohibiting English subjects r . i : . . : i r . from enlisting in foreign service, the avowed object of which statutes was. that foreign armies, raised for the purpose of restoring ine house ot iatuart to the throne, should not be strengthened by recruits from England herself. All must see that difficulties may arise in carrying the laws referred to into ex ecution in a country now having three or four thousand miles of seacoast, with an infinite number of ports and harbors and small inlets, from some of which unlawful expeditions may suddenly set forth, without the knowledge of Government, against the possessions of foreign States. Friendly relations with all, but entang ling alliances, with none, has long been maxim with us. Our true mission is not to propagate our opinion, or impose upon other countries our form of government, by artifice or force, but to teach by ex ample, and show by our success, modera tion and justice, the blessings of self gov ernment and the advantages of free insti tutions. Let every people choose for itself, and make and alter its political in stitutions, to suit its own condition and convenience. But, while we avow and maintain this neutral policy ourselves, we are anxious to see the same forbearance on the part of other nations, whose forms of government are different from our own. The deep interest which we feel in the spread of liberal principles and the estab lishment of free governments, and the sympathy with which we witness every struggle against oppression, forbid that we should be indifferent to a casein which the strong arm of a foreign power is invok ed to stifle: public sentiment and repress the spirit of freedom in any coantry. The governments of Great Britan and France have issued orders to their naval commanders on the West India station to prevent by force, if necessary, the land ing of adventurers from any nation on the Island of Cuba with hostile intent. The copy of a memorandum of a conversation on this subject between the Charged' Affaires of her Britannic Majesty a4 the Acting Secretary ot Staterand of a Subse quent note of the former to the' Depart ment of State, are herewith submitted, to gether with a copy of a note of the Acting Secretary of State to the Minister of the French republic, and of the reply of the latter, on the same subject. These pa pers will acquaint you with the grounds of this interposition of the two leading commercial powers of Eumpe, and with the apprehensions, which this Government could not fail to entertain, that "such in terposition, if carried into effect, might lead to abuses in derogation of the mari time rights of the U. States. The mari time rights of the U. States are founded on a firm, secure, and well defined basis; they stand upon the ground of National Independence and public law, and will be maintained in all their full and just extent. The principle which this Government has heretofore solemnly announced is still adheres to, and will maintain under all circumstances and at all hazard-. That principle is that in every regularly docu mented merchant vessel, the crew who navigate it, and those on board of it, will find their protection in the flag which is over them. No American ship can be allowed to be visited or searched for the purpose of ascertainiug the character of individuals on board, nor can there be allowed any watch by the vessels of any loreign nation over American vessels on the coasts of the IT. States or the seas adjacent thereto. It will be seen by the last communication from the British Charge d Affaires to the Department of State, that he is authorized to assure the Secretary of State that every care will be taken that, in executing the preventive measures against the expedition, which the U. States Government itself has de nounced a not bing entitled to the pro tection of any government, no interference shall take place with the lawful commerce of any nation. In addition to the correspondence on this subject, herewith submitted, official information has been received at the De partment of State, of assurances by the French government that, in the orders given to the French naval forces, they were expressly instructed, in any opera tions they might engage in, to respect the flag of the U. States wherever it might appear, and to commit no act of hostility upon any vessel or armament under its protection Ministers and consuls of foreign nations are the means and agents of communica tion between us and those nations, and it is of the utmost importance that, while residing in the country, they should feel a perfect security so long as they faith fully discharge their respective duties and are guilty of no violation of our laws This is the admitted law of nations, and no country has a deeper interest in maintain ing it than the U. States. Our commerce spreads over every sea and visits every clime, and our ministers and consuls are appointed to protect the interests of that commerce, as well as to guard the peace of the country and maintain the honor of its flag. But how can they discharge these duties unless they be themselves protected; and, it protected, i must be by the laws of the country in which they reside. And what is due to our own public functiona ries residing in foreign nations is exactly the measure of what is due to the func tionaries of other governments residing here. As in war, the bearers of flags of truce are sacred, or else wars would be interminable, so in peace, embassadors, public ministers, and consuls, charged with friendlv national intercourse, are ob jects of especial respect and protection. each according to the rights belonging to his rank and station. In view of these important principles, it is with deep mor tification and regret I announce to you that, during the exci ement growing out of the executions at Havana, the office of her Catholic majesty's consul at New Orleans was assailed by a mob, his proper ty destroyed, the Spanish flag found in the office carried off and torn ii pieces, and he himself induced to flee for his personal safety, which he supposed to be in danger. On receiving intelligence of these events, I forthwith directed the attorney of the U. States residing at New Orleans'to inquire into the facts and the extent of the pecu niary loss sustained by the consul, with the intention ot laying them before you, that you might make provision for such in demnity to him as a just regard for the honor of the nation, and the respect which is due to a friendly power might, in your judgement, seem to require. The corres pondence upon this subject between the Secretary of State and her Catholic maj esty's minister plenipotentiary is herewith transmitted. The occurrence at New Orleans bat led me to give my attention to the state of our Jaws in regard to foreign embassadors, ministers, and consuls. I think the legis lation of the country is deficient in not providing sufficiently either for the protec tion or the punishment of consuls I therefore recommend the subject to the consideration of Congress. Yourattention is again invited to the question of reciprocal trade between the U. States and Canada and other British possessions near our frontier. Overtures for a convention upon this subject have been received from her Britanic Majesty's Minister Plenipotentiary, but it seems to be in many respect- preferable that the natter should be regulated by reciprocal I legislation. Documents are (aid before you showing the terms which the British government is willing to offer, and the measures which it may adopt, if some arrangement upon this subject shall not be made. From the accompanying copy of a note from the British Legation at Washington, and the reply of the Departemnt of State thereto, it will appear that her Britannic Majesty's government is desirous that a part of the boundary line between Oregon and the British possessions should be au thoritatively marked out; and that an in tention was expressed to apply to Congress for an appropriation to defray the expense thereof on the part of the United States. Your attention ta this subject is ac cordingly invited, and a proper appropria tion recommended. A convention for the adjustment of claims of citizens of the United States against Portugal has been concluded, and the ratifications have been exchanged. The first enstalmentof the amount to be paid by Portugal fell due on the 30th of September last, and has been paid. The President of the French republic, according to the provisions of the conven tion, has been selected as arbiter in the case of the General Armstrong; and has signified that he accepts the trust and the high satisfaction he feels in acting as the common friend of two nations, with which France is united by sentiments of sincere and lasting amity. The Turkish government has expressed its thanks for the kind reception given to the Sultan's agent Amin Bey, on the oc casion of his recent visit to the United States. Ob the 28th of February last a despatch was addressed by the Secretary of State to Mr Marsh, the American Min ister at Constantinople, instructing him to ask of the Turkish government permission for the Hungarians, then imprisoned with in the dominions of the Sublime Porte, to remove to this country. On the 3d of March last both Houses of Congress passed a resolution requesting the President to authorize the employment of a public ves sel to convey to this country Louis Kossuth and his associates in captivity. The instruction above referred to was complied with, and the Turkish govern ment having released Governor Kossuth and his companions from prison, on the 10th of September last they embarked on board of the United States steam-frigate Mississippi, which was selected to carry into effect the resolution of Congress. Governor Kossuth left the Mississippi at Gibraltar, for the purpose of making a visit to England, and may shortly be ex pected in New York. By communications to the Department of State he has express ed his grateful acknowledgments lor the interposition of this Government in behalf of himself and his associates. This coun try has been justly regarded as a safe asy lum for those whom political events have exiled from their own homes in Europe ; and it is recommended to Congress to con sider in what manner Governor Kossuth and his companions, bro tght hither by its authority, shall be received and treated. It is earnestly to be hoped that the dif ferences which have for some time past been pending between the government of the French republic and that of the Sand wich Islands, may be peaceably and dura bly adjusted, so as to secure the indepen dence of those islands Long before the events which have of late imparted so much importance to the possessions of the United States on the Pacific, we acknowledged the independence ot the Hawaiian govern ment. This Government was first in tak ing that step, and several of the leading powers of Europe immediately followed. We were influenced in this measure bv the existing and prospective importance of the islands as a place of refuge and refresh ment for our vessels engaged in the whale fishery, and by the consideration that they lie in the course of the great trade which must, at no distant day. be carried on be tween the western coast of North America and Eastern Asia. We were also influenced by a desire that those islands should not pass under the control of any other great maritime State, but should remain in an independent con dition, and so be accessible and useful to the commerce of all nations. I need not say that the importance of these considera tions has been greatly enhanced by the sudden and vast development which the interests of the United. States have attain ed in California and Oregon ; and the policy heretofore adopted in regard to those islands win oe steadily pursued. It is gratifying not only to those who consider the commercial interests of na tions, but also to all who favor the progress of knowledge and the diffusion of religion, to see a community emerge from a savage state and attain such a degree of civiliza tion in those distant seas. It is much to be deplored that the inter nal tranquility of the Mexican republic should again be seriously disturbed; for, since the peace between that republic and the United States, it had employed such comparative repose that the most favorable anticipations for the future might, with a degree of confidence, have been indulged. These, however, have been thwarted by the recent outbreak in the State of Tamaulipas. on the right bank of the Rio Bravo. Having received information that persons from the United States had taken part in the insurrection, and apprehend ing that their example might be followed by others, I caused orders to be issued for the purpose of preventing any hostile ex peditions against Mexico from being set on foot in violation of the laws of the United States. I likewise issued a pro clamation upon the subject, a copy of which j is herewith laid before you. This appear ed to be rendered imperative by the obli- ! gations of treaties and the general duties ot good neighborhood. Id my last annual message I informed Congress that citizens of the U. States had undertaken the connexion of the two oceans by means of a rail- ! road across the Isthmus of Tehauntepec, under j a grant ot ine Mexican government to a citizen of that republic; and that this enterprise would prooaoiy oe prosecuted wiin energy whenever exico should consent to such stipulations with the government of the U. States asshould impart a feeling of security to those who should invest their property in the enterprise. A convention between the two governments for the accomplishment of that end has been rati fied by this government, and only awaits the de cision of the Congress and the Executive of that republic. Some unexpected difficulties and delays have arisen in the ratification of that convention by Mexico, but it is to be presumed that her deci sion will be governed by just and enlightened views, as well of the general importance of the object, as of her own interest and obligations. In negotiating upon this important subject, this government has had in view one, and only one, object. That object has been, and is, the construction or attainment, of a passage from ocean to ocean, tb shortcut a.d the best for travellers and merchandise, and equally open to all the world. It has sought to obtain no terri torial acquisition, nor any advantages peculiar to itself; and it would see with the -ire test re gret that Mexico should oppose any obstacle to the accomplishment of an enterprise which pro mises so much convenience to the whole com mercial world, and such eminent advantages to M exico herself. Impressed with these senti ments and these convictions, the government will continue to exert all proper efforts to bring about the necessary arrangement with the repub lic of Mexico for the speedy completion of the work. For some months past the republic of Nicar agua has been the theatre of one of those civil convulsions, from which the cause of free insti tution.?, and the general prosperity and social progress of the States of Central America have so often and so severely suffered. Until quiet shall have been restored, and a government apparently stable shall have been organized, no advance can prudently be made in disposing of the questions pending between the two countries. I am happy to announce that an inter-oceanic communication from the mouth of the St John to the Pacific has been so far accomplished as that passengers have actually traversed it, and merchandise has been actually transported over it; and when the canal shall have been complet ed according to the original plan, the means of communication will be further improved. It is understood that a co.widerable part of the railroad across the Isthmus of Panama has been completed, and that the mail and passengers will in niture De conveyed thereon. Whichever of the several , routes between the two oceans may ultimately jprove most eligible for travellers to and from the different States on the Atlantic and Gulf of Mexico and our coast on the Pacific, there is little reason to doubt that all of them will be useful to the public, and will liberally reward that individual enterprise, by which alone they have been or are expected to be carried into eflect. i Peace has been concluded between the con tending parties in the Islandof St. Dmingo,and it is hoped upon a durable basis. Such is the extent of our commercial relations with that Island, that the U. States Cannot fail to feel a strong interest in its tranquility. The office of Commissioini to China remains unfilled ; several persons hve been appointed, and the place has been offered to others, all of whom have declined its acceptance on the ground of the inadequacy of the cotnpens.it ion. The an nual allowance bv law is $6,000, and there is no provision for any outfit. ' I earnestly recommend the consideration of this subject to Congress Our commerce with China is highly important, and is becoming more and more so, in conse quence of the increasing intercourse between our ports on the Pacific coast &. eastern Asia. China is understood to be a country in which living is very expensive, and I know of no reason whv the American Commissioner sent thither should not he placed, in regard to compensation, on an equal footing with ministers who represent this coun try at the couits of Europe. By reference to the report of the Sec'y of the Treasury, it will be seen that the aggregate re ceipts for the last fiscal year amounted to $52, 312,979 87; which, with the balance in the Trea sury on the 1st July, IS50, gave, as the available means for the year, the sum of $58,917,524 36. The total expenditures for the same period were $48,005,878 68. The total imports for the vear ending 30th June 18.11, were $213,725,995 Of which there were in specie 4,967,101 The exports for the same period were $217,517,130 Of which there were of domestic products $17S,546.553 ' For'gn goods re-exported 9,739,693 Specie 29,231,880 $217,317,130 Since the 1st Dec. last the payments in cash on account of the public debt, exclusive of inter est, have amounted to S7.501.456 56; which, however, includes the sum of S3.242.400 paid un der the 12th article of the treaty with Mexico, and the further sum of $2,391,213 45, being the amount of awards to American citizens under the late treaty with Mexico, for which the issue of stock was authorized, but which was paid in cash from the Treasury. The public debt on the 20th ult, exclusive of the stock authorized to be issued toTex..s by the act of 9th September, 1S50, was $62,560,395 26 The receipts for the next fiscal year are esti mated at $51,500,000, which, with the probable unappropriated balance in the Treasury, on the 30th June next, will give, as the probable avail able means for that year, the sum of $63,258,743. It has been deemed pioper, in I view of the large expenditures consequent Upon tfre acquisition of territory from Mexico, that the estimates for the next fiscal year should be laid before Con gress in such manner as to distinguish the expen ditures so required from the otherwise ordinary demands upon the Treasury. The total expenditures for the next fiscal year are eatimated at $42,892,299 19, of which there is required for the ordinary purposes of the gov ernment, other than those consequent upon the acquisition of our new territories, and deducting the payments on account of the public debt, the sum of $33,343,198 S8; and for the purposes con nected directly or indirectly with those terri tories, and in the fulfillment of the obligations of the government, contracted in consequence of their acquisition, the sum of $9,549,101 11. If the views of the Sec'y of the Treasury in re ference to the expenditures required for these territorins shall be met by corresponding action on the part of Congress, and appropriations made in accordance therewith, there will be an esti mated unappropriated balance in the Treasur on the 30th June, 1853, of $20,366,443 90, wherewith to meet that portion of the public debt due on the 1st July following, amounting to $6,237,931 35, as well as any appropriations which may be made beyond the estimates. In thus referring to the estimated expendi tures on account of our newly-acquired territo ries, I may express the hope that Congress will concur with me in the desire that a liberal course of policy may be pursued towards them, and that every obligation, express or implied, entered in to in consequence of their acquisition, shall be fulfilled by the most liberal appropriations for that purpose. ' The values of our domestic exports for the last fiscal year, as compared with those of the previ ous year, exhibit an increase of $43,6 16,322. At first view this condition of our trade with foreig nations woold seem to present the most nattering hopes of its future prosperity. An examination of the details of our exports, however, will snow that the increased value of our exports for tn last fiscal year is to be found in the high Pf of cotton which prevailed during the first half oi that year, which price has since declined abous one-half. , The value of our exports of breadstuff ana provisions, which it was supposed the incentive of a low tariff and large importations from abroaa would have greatly augmented, has fallen from $68,701, 921 in 1S47, to $26,031,373 in 16S0,M to $21,943,653 in 1851, with a strong probabili ty, amounting almost to a certainty, of a still further reduction in the current year. The aggregate values of rice exported during the last fiscal year as compared with the P ous year, also exhibit a decrease amounting to $460,917, which, with decline in the values of the exports of tobacco for the same period, make an aggregate decrease in these two articles of $1,156,751. , . The policy which dictated alow rate of duties on foreign merchandise, it was thought by those who promoted and established it, would tend to benefit the farming population of this country, by increasing the demand and raising the price of agricultural products in foreign markets. The foregoing facts, however, seem to show incontestiblj that no such result has followed the adoption of this policy. On the contrary, notwithstanding tfie repeal of the restrictive corn laws in England, the foreign demand for the pro ducts of the American farmer has steadily de clined, since the short crops and consequent fa mine in a portion of Europe have been happily replaced by full crops and comparative abund ance of food. t i It will be seen by recurring to the commercial statistics for the past year, that the value of our domestic exports has been increased in the sin gle item of raw cotton by $4C,000.000 over the value of that exported for the year preceding. This is not due to any increased general demand for that article, but to the short crop of the pre ceding year, which created an increased demand and an augmented price for the crop of last year. Should the cotton crp now going forward to market be only equal iu quantity to that of the year preceding, and be sold at the present prices, then there would be a falling off in the value of our exports for the piesent fiscal year of at least $40,000,000. compared with the amount export ed tor the year ending 30th June, 1851. The production of gold in California for the past year seems to promise a large supply of that metal frm that quarter for some time to come. This laige nnnn:l increase of the currency of the world must be attended with its usual results. These have already been partially disclosed in the enhancement of prices and a rising spirit of speculation and adventure, tending to overtrad ing, as well at home as abroad. Unless some salutary check shall begiven to these tendencies,, it is to be feared that importations of foreign goods beyond a healthy demand in this country will lead to a sudden drain of the precious me tals from us, bringing vtjth it, as it has done in former times, the most disastrous consequences to the business and capital of the American peo ple. The exports of specie to liquidate our foreign debt during the past fiscal year have been $24, 263,979 over the amount of specie imported. The exports of specie during the first quarter of the present fiscal year have been $14,651,827. Should specie continue to be exported at this rate tor the remaining three quarters of this year, it will drain from our metallic currency duiiiig the year ending 30th June, 1352, the enormous ..mount of $5S',607,30S. In the present prosperous condition of the na tional finances, it w ill become the duty of Con gress to consider the best mode of paying off the public debt. If the pre.-ent and anticipated sur plus in the Treasury should not be absorbed bv appropriations of an extraordinary character, this surplus should he employed in such way, and un der such restrictions as Congress may enact, in. extinguishing the outstanding debt of the nation. By reference to the act of Congress approved 9th Sept. 1S50. it will be seen that in considera tion of certain concessions by the State of Texas, it is provided that the "V. States shall pay to the State of Texas the sum of $ 1 0,000.000, in 'a stock bearing 5 per cent, interest, and redeemable at the end of 14-yeais, the interest p.iyahle half yearly, at the Treasury of the United States." In the same section of the law it is further pro vided " that no more than five millions of said stock shall be issued until the creditors of the Stae holding hoods and other certificates of stock of Texas, for which duties on import were specially pledged, shall fust file at the Treasury of the U. States releases of all claims against the U. States, for or on account of said bonds or cer tificates, in such torm as shall be prescribed by the Sec'y of the Treasury, and approved by the President of the United States." The form of release thus provided for has been prescribed by the Sec'y ..f the Treasury and ap proved. It b.s been published in all the leading , newspapers in the commercial cities of the U. S, and all oersons holding claims of the kind speci lied in the foregoing proviso were required to file their releases (in the form thus prescribed) in the Treasury of the U. S., on or before the 1st of Octaber, ls5t Although this publication ha been continued from the 25th March. 151, yet up to the 1st Oct. List comparatively few release had been filed by the creditors of Texas. The autharities of the State of Texas, at the request of the Sec y of the Treasury, have fur nished a schedule of the public debt of that St.de created prior to her admission into the Union, with a copy of the laws under which each class wis contracted. I have. frm the documents furnished bv the Stale .f Texas, determined the classes of ciaiu.s which in my judgment f.ill within the provisions ot the act of Congress of the 9th of Sept 1850 On being officially informed oftheacceptai.ee by rixas of the proposition contained in the act referred to, I caused the stock to be prepared, and the live millions which are to be issued un conditionally, bearing an interest of 5 per cent, from the 1st of Jan'y, 151. have been lor some time re . dy to be delivered to the State ot Texas. The autuonties of Texas, up to the present time, have not authorized any one to receive this stock, and it remains in the Treasury Depart ment, subject to the order .f Texas. Th "I", required by law to be deposited in the Treasury, not having been filed there, the remaining five millions he not been issued. Ibis last amount of the stock will be withheld from Texas until the conditions upon which it is to be delivered shall b complied with by the creditors of that State, unless Congreas shall otherwise direct by a modification of the law In my last annu-1 message, to which I respect, fully refer, I stated briefly the reasons which in duced me to recommend a modification of the present tarifl. by converting the ad valorem into a specific duty, whenever the article imported was of such a character as to permit it, and that such a discrimination should be made in favor of the industrial pursuits ot our own country, as to encourage home production without excluding foreign competition. The numerous frauds which continue to be practised upon the revenue by flse invoices and undervaluations, constitute an unanswerable rea son for adopting specific instead of ad valorem duties in all cases where the nature of the com modity does not forbid it. A striking illustra tion of these frauds will be exhibited in the Re port of the Sec'y of the Treasury, showing the custom-house valuation of the articles imported under a former law subject to specific duties, when there was no inducement to undervalua tion, and the custom house valuations of the same articles, under the present system of ad valorem duties, so greatly reduced as tj leave no doubt of the existence of the most flagrant abuses under the existing laws. This practical evasion of the present law, combined with the languish ing condition of &ome of the great interests of the country, caused by over importations and consequent depressed prices, and with the failure in obtaining a foreign market for our increasing surplus of breadstufls and provisions, has induced me again to recommend a modification of the existing tariff. The report of the Secretary of the Interior,

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