ment, that upon the expenditures then estimated for a state of peace, there would remain on the 1st of July, 1847, a balance in the treasury of $4,332,441 07. Deducting this balance from the excess of expenditures above estimated by the War and Navy Departments, there would result a deficiency of $19,620,463.

It is believed, however, that this deficiency will, from augmented receipts accrued and accruing for the fiscal years 1846 and 1847, be diminished four millions of dollars, which would reduce the deficit on the 1st of July, 1847, to $15,620,463.

It is ascertained by experience, that for the certain, prompt, and convenient payment of the public creditors, at all times and places throughout our extended territory, and the supply of the mint and branch mints for coinage, a sum of four millions of dollars, especially during a state of war, must remain on hand in the treasury, which would again raise the sum to be provided for before the 30th of June, 1847, to $19,620,463.

It is believed, however, that a sum equal to $5,534,057 of additional revenue may be produced by the modification of the tariff herein proposed-namely, to adopt. as a basis, the bill reducing the tariff reported by the Committee of Ways and Means to the House of Representatives on the 14th of April last, together with the augmented and additional duties now proposed and enumerated in schedule A. This change of the bill reported by the committee, omitting the fourth section, would make an addition to the revenue to be produced by that bill, of $5,034,056.

After a very careful examination of the additional data which it has been in my power to obtain since the month of February last, it is my conviction that the bill of the committee will produce a net revenue of at least twenty-six millions of dollars. If to this be added the additional duties proposed to be levied in schedule A, the bill of the committee, with the modifications embraced in that schedule, would produce a net revenue of $30,034,057. This would make an addition of $5,534,057 to the revenue that would be produced under the act of the 30th of August, 1842. If, then, we deduct this $5,534,057 from the deficit above estimated, it would still leave a deficit of $14,086,406.

If, in addition to the modifications of the tariff above suggested. the warehousing system were adopted, as recommended in my annual report of December last, it would make an addition to the annual revenue from customs of one million of dollars, which, deducted from the above deficit, woud leave a deficiency still remaining of $13,086,406.

It is true that the introduction of the warehousing system might diminish the

revenue during a portion of the first year succeeding its adoption; but that it would add one million of dollars per annum to the permanent annual revenue from customs is not doubted.

It is believed also that the reduction and graduation of the prices of the public lands in favor of settlers and cultivators, as recommended in your message of December last, would make an annual addition of half a million of dollars to the revenue derivable from the proceeds of the sales of the public lands, by bringing into market many millions of acres of the public domain which are wholly unsaleable at the present minimum price established by law. Deducting this sum of half a million of dollars from the deficit last above mentioned, would leave still unprovided for, the sum of $12,586,496, which must be met by loans, treasury notes, direct taxation, or excises.

In addition to the strong objections which have been urged against direct taxes and excises, it would be difficult to put in operation such a system in all the States and Territories, so as to realize the required amount in cash, before the 30th of June, 1847. A system of direct taxes and excises, it is believed, would not meet the sanction of the people, unless in the emergency of a war with some great maritime ation, exposing our commerce to great hazard, and greatly reducing the revenue from duties on imports.

The only remaining means for supplying this deficit within the required period, is by loans or treasury notes; and I would accordingly recommend, with a view to the most vigorous prosecution of the existing war with Mexico, so as to bring it to a speedy and honorable termination, that a contingent authority should be vested in this department, with your sanction, to issue treasury notes, or effect a loan of a sum in the aggregate not exceeding the last above-mentioned deficit of $12,586,406.

I think it would be most advantageous to the Government, that a portion of this money should be raised by treasury notes, and the remainder by loans, limiting the interest in both cases to a rate not exceeding six per cent. per annum, and forbidding the negotiation in either case below the par value. If the authority were limited so as to cover this deficit, and the power given to resort to loans or treasury notes, or both, as the emergency might require, the money might be raised at a much lower rate of interest than if the department were confined either to loans alone, or to treasury notes. The experience of the Government has demonstrated that there are periods when loans are most available, and that there are occasions when treasury notes are much better adapted to meet the emergen

ey: and the power to select both, or either, from time to time, would render the negotiation more certain, and probably save a very large amount of interest to the Government. If the war should be speedily terminated, it is possible that a resort to loans or treasury notes might not be required, or if so, for an inconsiderable amount. The same power as now given by law to redeem the loan, even before its maturity, whenever the funds of the Government will permit, so as to liquidate any public debt as soon as possible, should be continued, as also the authority for the reissue of the treasury notes as heretofore provided by law, as well as for their receipt in revenue payments.

The additional duties designated in schedule A, are recommended as a war

measure, and to terminate with the restoration of peace, or as soon thereafter as the state of the public finances will permit their discontinuance.

I have the honor to be, sir,

Most respectfully,
Your obedient servant,

R. J. WALKER,
Secretary of the Treasury.

To the PRESIDENT.

What disposition Congress may make of these recommendations cannot, as yet, be conjectured with any accuracy. The opinion, however, seems to prevail, that the proposed duties on tea and coffee and on some other articles now free, will not be agreed to. But as the larger portion of the sum anticipated from the proposed change in the Tariff, would arise from these duties on articles now free, recourse, if they be refused, must be had to some other supplies-unless, indeed, which is certainly to be hoped and desired, a speedy peace with Mexico should cut short the prodigal war expenditures. But if war is to continue, and additional duties be not levied, and excise and direct taxation be rejected, it will be impossible, except at ruinous and discreditable rates to negotiate loans, or to keep in circulation any considerable amount of treasury notes. Indeed, in regard to the authority to issue these latter at all, Congress is said to hesitate a good deal, from an apprehension, not altogether visionary or unfounded, of the danger of such paper money. It is, indeed, very easy, and therefore very tempting, to a popular Government, when pushed for funds, rather to prefer the issue of paper promises to pay, than to hazard their popularity by levying taxes on the people-but all experience our own during the Revolution in the shape of continental money,

and that of France, during its agony of revolution, in the shape of assignatsproves that such irredeemable issues of Government paper money are so liable to abuse, that in extreme cases only, and under severe restrictions, and to a limited amount, should they ever be authorized. At present, however, it would seem that treasury notes bearing interest, redeemable at a specific term, and receivable for public dues, might be issued to the amount of a few millions without danger of abuse, and to the great relief of the currency.

A few weeks must develop the inindeed in all the cognate questions of Tar tentions of Congress in this regard, and iff, the Public Lands, the Warehousing Bill, and the Sub-Treasury.

The session has lasted already nearly seven months, yet not one of the great measures, said to be fundamental with the party in power, has been matured; and we are disposed now to doubt whether any single one of them will be.

The Sub-Treasury, however it may work in times of peace, cannot answer in war, and it therefore is likely, if passed at all, to be passed in a shape so modified, as hardly to be cognizable under the name.

To the Warehousing Bill great objections are made-as being too general and indiscriminate in its provisions-and therefore as tending to empty into our warehouses the refuse unsaleable surplus stock of all Europe, to lie here free from duty for three years, liable only to a comparatively small charge for storage

and yet ever ready to be thrown into our market at such moment as may offer the most chance of competition ruinous to American fabrics of like general character, but of really superior value. Yet such a bill will be warmly pressedand such a bill, carefully prepared and guarded, would seem a necessary and proper complement of a system such as prevails, of cash duties, since it would give to the importer the opportunity of placing his goods in the public warehouse, and only taking them out and paying the duty on them as they are sold for consumption, and not, as now, be obliged to pay the duty on the whole invoice, months often, before he has an opportunity of selling the goods.

The reduction of the tariff in time of

war, when, productive as it has been found, it cannot yet suffice for our expenditures, is a hazardous experiment;

which some, who might otherwise consent on general principles to a diminution of duties, may feel doubtful about making. The letter of the Secretary of the Treasury in the preceding page calculates, indeed, upon increasing the revenue by the reduction he recommends of duties but seeing that the existing rates produce far more than it was estimated they would by those who insist that high duties necessarily diminish revenue, there will not be as much faith reposed in this Treasury estimate of increased revenue from diminished duties, as if the previous estimates about the opposite result had turned out correctly. We look upon it, therefore, as quite problematical whether there will be any material change in the existing tariff.

Concerning the public lands, the chief effort seems to be to reduce the price of those, which have for a long term of years been offered for sale, without finding purchasers at the present price of $1 25 per acre. Whether this succeed or not, the policy of the general management of the public lands would be little affected thereby; though its success would be one step forward in the

scheme virtually to give away this noble inheritance of the whole American people.

While, therefore, uncertainty continues respecting the measures of the general Government calculated to affect all business pursuits, and war still prevails, there can be none of the settled feeling and security of ordinary peaceful times. Still commerce has not yet suffered any interruption from Mexican hostilities, or hostilities under the Mexican flag on the seas no privateers have been heard ofand although through apprehension of possible evil considerable derangement of business occurred at New Orleans by the withdrawal of credits, the suspension of shipments and the accumulation of produce, business is now measurably returning to its accustomed channels; and if, as is hoped, Mexico may soon consent to treat for peace under the pledge reiterated by the President in the message of the 16th inst., in which he communicated to the Senate the war estimates-of his earnest desire to return to a state of peace-the prospects of the future would look more hopeful.

est.

THE foreign intelligence of the month presents no feature of transcendent interThe war with Mexico has made no advance since our remarks of last month, except that the American army, under General TAYLOR, has taken undisputed possession of Matamoras, and the neighboring region of Mexican territory, and is gradually advancing towards the heart of the country. With England our relations are believed to have been materially improved, by the conclusion of a treaty partitioning the Oregon territory between the rival claimants. The President, iron whatever motive, conforming to the practice of WASHINGTON, solicited the advice of the Senate in regard to the terms of composition. That advice was promptly given: a treaty was framed by the Executive in accordance with it; it was at once ratified by the Senate, by the decisive vote of 41 to 14, and is now on its way to England for final approval by the English Government, which it will doubtless receive, and thus become the sovereign and irrevocable law of the land. The terms of the treaty do not differ essentially from those which have been laid down in this Review as just, desirable

and honorable to both the contending par ties. The 49th parallel to the Straits of Fuca is adopted as the boundary, England retaining the whole of Vancouver's Island, and the right of joint navigation of the Columbia during the continuance of the present charter of the Hudson's Bay Company, a period of about seventeen years. These facts, it should be added, rest as yet upon nothing better than well authenticated rumor, as the proceedings have all been had in secret session, and have not yet been officially divulged. Of their substantial ac curacy, however, we have little doubt, and venture accordingly to congratulate the country upon this satisfactory adjustment of a long-pending and threatening dispute. Granting that the partition is disadvanta geous to either party, which need not be conceded, it certainly is honorable to both: and not only they, but the whole world, have reason to rejoice at the pacific and auspicious result.

In ENGLAND little has occurred of marked interest. The success of Sir Robert Peel's new Corn Bill has been reduced to certainty, by its passage in the House of Lords to a second reading by a large major

ity; and the next steamer will probably bring intelligence of its final enactment into a law. The apprehensions of famine in Ireland are gradually subsiding, and much of the alarm felt upon the subject, though natural and creditable, seems to have been needless. It has had great influence, however, in effecting the adoption of Sir Robert Peel's new and startling changes in the commercial policy of the kingdom,changes of which the importance has as yet been but dimly seen, and which must in the end work an entire revolution in the domestic concerns of Great Britain. No stronger or more striking evidence could have been given of the immense increase of the popular, over the aristocratic, element in the government of the country, than is afforded by the triumphant adoption of these important departures from its old, established, and apparently necessary policy.

In FRANCE public attention seems to have been absorbed by several events of considerable interest, though slight importance. Lecompte, who aspired to become the assassin of Louis Phillipe, has been "questioned" very closely, and seems to have acted entirely from personal animosity. No connection with political conspirators was made even probable. Prince Louis Napoleon, after a captivity of six years, has made his escape from the fortress of Ham, and had arrived in London, whence he was soon to depart for Florence, to visit his aged father, Lucien Bonaparte. He escaped disguised as a carpenter. His release has relieved the Government from unpleasant embarrassment. An interesting debate upon the Foreign Policy of the present Ministry has been had in the Chamber of Deputies, in which M. THIERS made a very able and elaborate attack upon the whole course of the Government in regard to other nations, which was answered with equal ability, and, as is generally conceded, with complete success, by M. GUIZOT. The Minister was assailed with special force respecting the treaty he had concluded with Morocco, and was bitterly reproached for not having insisted on the surrender of that formidable enemy of France, Abd-el-Kader, who has crowned the war in which he has been so long engaged by one of the most atrocious deeds recorded in history. It is announced, on authority which unhappily precludes doubt, that about the last of April he gave orders to his brother-in-law, MustaphaBen-Tami, who commanded in the Deira, and had charge of the French prisoners taken in the last campaign, to rid himself of them, in order to facilitate his retreat, and prevent their rescue by certain tribes of Arabs and of Moors, through the midst of whom Mustapha was about to pass in his flight before the advancing columns of the French. The order was obeyed, and above

three hundred French prisoners, officers and men, unarmed, were butchered in cold blood! This horrible massacre must greatly prolong and deepen the horrors of the war in Algeria. The victories of the French, though some of them have been decisive, seem to have in the end but little effect upon the general contest, and the Arabs have resources for prolonging it indefinitely. The Minister of War has recently published a tableau view of the establishments in Algeria, from which it appears that the native population in the parts examined by the Arab Bureau amounts, in the province of Constantini, to 1,046,716 souls; in that of Algiers to 490,168, and in that of Oran to 477,034, giving a total of 1,983,918. The whole population in Algeria, Tell, and Sa'hara, is estimated at 3,000,000 at least. Demands were made, in 1845, to the Minister of the Interior, for concessions of land, to the number of 1,696, by French subjects, and of 183 by foreigners; the demands made to the Minister of War were more important. The French families demanding to emigrate are 464 in number, and their resources reach the sum of 15,091,359 fr.; the foreign families are 572 in number, and their property amounts to 786,195 fr. The civil population which, in December 31, 1844, consisted of 75,420 individuals, had increased in December 31, 1845, to 96,119; the agricultural population in the establishments founded by the Government amounts to 42,812. Not less than 21,009 orders for gratuitous passages were issued in 1845 by the Minister of War.

The French are about to send a vessel to South America, to institute a new hydro. graphical survey of the Gulf of Panama, from Point Mala to the bay of Choco. The first soundings of the Pacific side were taken in 1843, by the Danae, and it is now proposed to complete the important work which was then commenced.

The German Zollverein, or Customs Union, is about to hold its Congress at Berlin, when the accession of Hanover to the League is confidently expected. The commercial treaty between the United States and the Zollverein, negotiated recently by Mr. WHEATON, as will be remembered. failed to receive the sanction of the Senate. It is not unlikely that a renewed attempt will be made, in the Zollverein Conference to accomplish the objects aimed at by this rejected treaty. The importance of the Association, and the number of people comprised within its regulations, render desirable on our part some established commercial relations. The League, it will be recollected, has its origin in a series of treaties made generally for terms of six years, in some instances for four only. Upon the expiration of each term, a Congress or Conference of the Zollverein determines whether the association shall be

continued, and what henceforth shall be the tariff of duties to be imposed. At each Congress, the treaties which may have been concluded since the last meeting are presented for ratification. The Zollverein is a confederation of States for commercial purposes. The States at present composing it, are: The Kingdom of Prussia, excepting the Principality of Neufchatel; the Kingdom of Saxony; the Association of the States of Thuringia, of which Weimar is the capital; the Duchy of Brunswick, including the Hanoverian possessions within its limits; the Kingdom of Bavaria; the Kingdom of Wurtemburg; the Grand Duchy of Baden; the Grand Duchy of Hesse; the Electorate of Hesse; the Duchy of Nassau; the Grand Duchy of Luxemburg; the City of Frankfort; the States Anhalt, Reuss, Hohenzollern, Lippe, and Waldock. These States comprise, altogether, a population of 28,000,000 souls, of which Prussia alone counts upwards of 16,000,000. Thus the relative power of Prussia in the Confederation is more than half. Prussia owns also the ports on the North Sea. In treaties, Holland, Belgium, Scandinavia, Russia, France and England, the Zollverein is represented by the Prussian Cabinet, which negotiates and settles the terms. The concerns of the Zollverein with Switzerland, are managed by Austria; and with the Italian States and Turkey, by the Bavarian Cabinet. The Zollverein has commercial treaties with Holland, Belgium, France, England, Portugal, Sardinia, Austria, Russia, Turkey and Denmark. The receipts of the customs of the Zollverein amount to $8,750,000 for Prussia, and about $17,500,000 in all. These statistics exhibit sufficiently the commercial importance of the Association, and demonstrate the policy of establishing with it advantageous commercial relations. But great and just doubts are entertained of the propriety of fixing on tariffs by treaty, and thus placing beyond the reach of Congress the power expressly committed to it by the Constitution, of laying duties upon imported goods. We do not think any such arrangement should or could receive the sanction of the proper authorities in the United States.

Influences are at work, and events are in progress, in ITALY, which are attract ing general attention in Europe, and which cannot fail, at no distant day, to produce important results. The weakness and utter incapacity of most of the Governments of the Papal States, have not only tended to cramp the resources and sacrifice the welfare of the people to a policy long since obsolete; but have aided to perpetuate the domination secured by Austria over the Peninsula, by the arrangements made at the Congress of Vienna. Nothing is wanted but able, efficient and enlightened statesmen, to bring the Italian States out of the

channels of political intrigue in which they have so long been compelled to move, and to place them upon the broad highway of public improvement, on which nearly all the other civilized nations of the world are making so rapid progress. Some of the Italian States are beginning to perceive and to act upon these principles; and they are thus gradually establishing an independent policy. In Sardinia, especially, the enlightened and patriotic king, Charles Albert, has taken steps which cannot fail to work out for his country results of the most important and beneficial character. For some years past, intelligent observers in Europe have remarked the progress which his government has made in the path of political reform. His police regulations have gradually become less and less offensively stringent; his supervision has become more tolerant of opinion and of speech; the ultimate control of the public instruction has been committed to men the most distinguished in the country, who, though devoted to the government, are most inimical to the priests upon whom has hitherto devolved the whole system of education: and the restrictions upon trade, which, having no protective purpose to serve, have simply checked and destroyed the commerce of the kingdom, have been greatly relaxed and are rapidly disappearing altogether. The king, as the Paris Debats well remarks, fully understands that the day of political violence and embittered contention has passed, and has wisely raised the standard of reform, being certain, that he who most promptly and fully meets the exigencies of the country as they arise, will render most remote the probability of violent disturbances and bloody revolutions.

The distinguished men of Peidmont, in assembling at the General Congress, have zealously seized the opportunity of rendering themselves useful to their country. The Abbé GIOBERTE, a philosopher and theologian of great merit, has given the signal for the movement by the publication of a work, at once political and moral, upon Italy. This eloquent writer, paying less regard than some of his countrymen to the Utopias of speculative radicals, has proved in a most impressive manner, that to render certain the progress and regeneration of Italy, it is necessary to withdraw the princes from those bloody revolutions which have so widely separated them from their people, and to engage them heartily and zealously in the national cause. He has not failed to remark, with the highest satisfaction and the most deserved eulogium, the noble manner in which the king of Sardinia has already entered upon this noble career. Soon after the appearance of this work of Gioberte, one of the most eminent literary men of Turin, Count CÆSAR BALEO, published an essay upon the Hopes