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greater part of the remainder during the first half of the fiscal year succeeding.

In order that timely notice may be given, and proper measures taken to effect the loan, or such portion of it as may be required, it is important that the authority of Congress to make it be given at an early period of your present session. It is suggested that the loan should be contracted for a period of twenty years, with authority to purchase the stock and pay it off, at an earlier period, at its market value, out of any surplus which may at any time be in the treasury applicable to that purpose. After the establishment of peace with Mexico, it is supposed that a considerable surplus will exist, and that the debt may be extinguished in a much shorter period than that for which it may be contracted. The period of twenty years, as that for which the proposed loan may be contracted, in preference to a shorter period, is suggested, because all experience, both at home and abroad, has shown that loans are effected upon much better terms upon long time, than when they are re-imbursable at short dates.

Necessary as this measure is, to sustain the honor and the interests of the country, engaged in a foreign war, it is not doubted but that Congress will promptly authorize it.

The balance in the treasury on the 1st of July last exceeded nine millions of dollars, notwithstanding considerable expenditures had been made for the war during the months of May and June preceding. But for the war, the whole public debt could and would have been extinguished within a short period and it was a part of my settled policy to do so, and thus relieve the people from its burden, and place the Government in a position which would enable it to reduce the public expenditures to that economical standard which is most consistent with the general welfare, and the pure and wholesome progress of our institutions.

Among our just causes of complaint against Mexico, arising out of her refusal to treat for peace, as well before as since the war so unjustly commenced on her part, are the extraordinary expenditures in which we have been involved. Justice to our own people will make it proper that Mexico should be held responsible for these expenditures.

Economy in the public expenditures is at all times a high duty which all public functionaries of the Government owe to the people. This duty becomes the more imperative in a period of war, when large and extraordinary expenditures become unavoidable. During the existence of the war with Mexico all our resources should be husbanded, and no appropriations made except such as are absolutely necessary for its vigorous prosecution and the due administration of the Government. Objects of appropriation which in peace may be deemed useful or proper, but which are not indispensable for the public service, may, when the country is engaged in a foreign war, be well postponed to a future period. By the observance of this policy at your present session, large amounts may be saved to the treasury, and be applied to objects of pressing and urgent necessity, and thus the creation of a corresponding amount of public debt may be avoided.

[DECEMBER, 1846.

| interests; and these it is recommended should not be granted.

The act passed at your last session "reducing the duties on imports" not having gone into operation until the first of the present month, there has not been time for its practical effect upon the revenue, and the business of the country, to be developed. It is not doubted, however, that the just policy which it adopts will add largely to our foreign trade, and promote the general prosperity. Although it cannot be certainly foreseen what amount of revenue it will yield, it is estimated that it will exceed that produced by the act of 1842, which it superseded. The leading principles established by it are, to levy the taxes with a view to raise revenue, and to impose them upon the articles imported according to their actual value.

The act of 1842, by the excessive rates of duty which it imposed on many articles, either totally excluded them from importation, or greatly reduced the amount imported, and thus diminished instead of producing revenue. By it the taxes were imposed not for the legitimate purpose of raising revenue, but to afford advantages to favored classes, at the expense of a large majority of their fellowcitizens. Those employed in agriculture, mechanical pursuits, commerce, and navigation, were compelled to contribute from their substance to swell the profits and overgrown wealth of the comparatively few who had invested their capital in manufactures. The taxes were not levied in proportion to the value of the articles upon which they were imposed; but, widely departing from this just rule, the lighter taxes were, in many cases, levied upon articles of luxury and high price, and the heavier taxes on those of necessity and low price, consumed by the great mass of the people. It was a system the inevitable effect of which was to relieve favored classes and the wealthy few from contributing their just proportion for the support of Government, and to lay the burden on the labor of the many engaged in other pursuits than manufactures.

A system so unequal and unjust has been superseded by the existing law, which imposes duties not for the benefit or injury of classes or pursuits, but distributes, and, as far as practicable, equalizes the public burdens among all classes and occupations. The favored classes, who, under the unequal and unjust system which has been repealed, have heretofore realized large profits, and many of them amassed large fortunes, at the expense of the many who have been made tributary to them, will have no reason to complain if they shall be required to bear their just proportion of the taxes necessary for the support of Government. So far from it, it will be perceived, by an examination of the existing law, that discriminations in the rates of duty imposed within the revenue principle, have been retained in their favor. The incidental aid against foreign competition which they still enjoy gives them an advantage which no other pursuits possess; but of this none others will complain, because the duties levied are necessary for revenue. These revenue duties, including freights and charges, which the importer must pay before he can come in competition with the home manufacturer in our markets, Gov-amount, on nearly all our leading branches of manufacture, to more than one-third of the value of the imported article, and in some cases to almost onehalf its value. With such advantages, it is not doubted that our domestic manufacturers will con

It is not meant to recommend that the ordinary and necessary appropriations for the support of ernment should be withheld, but it is well known that at every session of Congress appropriations are proposed for numerous objects which may or may not be made, without materially affecting the public VOL. XVI.-2

DECEMBER, 1846.]

The President's Message.

[29TH CONG.

tinue to prosper, realizing in well-conducted estab- | she so much needs, and we so much desire to sell. lishments even greater profits than can be derived By the simultaneous abandonment of the protective from any other regular business. Indeed, so far policy by Great Britain and the United States, new from requiring the protection of even incidental and important markets have already been opened revenue duties, our manufacturers in several leading for our agricultural and other products; commerce branches are extending their business, giving evi- and navigation have received a new impulse; labor dence of great ingenuity and skill, and of their and trade have been released from the artificial ability to compete, with increased prospect of suc- trammels which have so long fettered them; and cess, for the open market of the world. Domestic to a great extent reciprocity, in the exchange of manufactures, to the value of several millions of commodities, has been introduced at the same time dollars, which cannot find a market at home, are by both countries, and greatly for the benefit of annually exported to foreign countries. With such both. Great Britain has been forced, by the presrates of duty as those established by the existing sure of circumstances at home, to abandon a policy law, the system will probably be permanent; and which has been upheld for ages, and to open her capitalists, who have made, or shall hereafter make, markets for our immense surplus of breadstuffs; their investments in manufactures, will know upon and it is confidently believed that other powers of what to rely. The country will be satisfied with Europe will ultimately see the wisdom, if they be these rates, because the advantages which the manu- not compelled by the pauperism and sufferings of facturers still enjoy result necessarily from the col- their crowded population, to pursue a similar policy. lection of revenue for the support of Government. Our farmers are more deeply interested in mainHigh protective duties, from their unjust operation taining the just and liberal policy of the existing upon the masses of the people, cannot fail to give law than any other class of our citizens. They conrise to extensive dissatisfaction and complaint, and stitute a large majority of our population; and it is to constant efforts to change or repeal them, ren- well known that when they prosper, all other purdering all investments in manufactures uncertain suits prosper also. They have heretofore not only and precarious. Lower and more permanent rates received none of the bounties or favors of Governof duty, at the same time that they will yield to the ment, but, by the unequal operations of the protecmanufacturer fair and remunerating profits, will se- tive policy, have been made, by the burdens of cure him against the danger of frequent changes in taxation which it imposed, to contribute to the the system, which cannot fail ruinously to affect his bounties which have enriched others. interests.

When a foreign as well as a home market is

Simultaneously with the relaxation of the restric-opened to them, they must receive, as they are now tive policy by the United States, Great Britain, from receiving, increased prices for their products. They whose example we derived the system, has relaxed will find a readier sale, and at better prices, for hers. She has modified her corn laws, and reduced their wheat, flour, rice, Indian corn, beef, pork, many other duties to moderate revenue rates. Af- lard, butter, cheese, and other articles, which they ter ages of experience, the statesmen of that coun- produce. The home market alone is inadequate to try have been constrained by a stern necessity, and enable them to dispose of the immense surplus of by a public opinion having its deep foundation in food and other articles which they are capable of the suffering and wants of impoverished millions, to producing, even at the most reduced prices, for the abandon a system the effect of which was to build manifest reason that they cannot be consumed in up immense fortunes in the hands of the few, and the country. The United States can, from their imto reduce the laboring millions to pauperism and mense surplus, supply not only the home demand, but misery. Nearly in the same ratio that labor was the deficiencies of food required by the whole world. depressed, capital was increased and concentrated by the British protective policy.

The evils of the system in Great Britain were at length rendered intolerable, and it has been abandoued, but not without a severe struggle on the part of the protected and favored classes to retain the unjust advantage which they have so long enjoyed. It was to be expected that a similar struggle would be made by the same classes in the United States, whenever an attempt was made to modify or abolish the same unjust system here. The protective policy had been in operation in the United States for a much shorter period, and its pernicious effects were not, therefore, so clearly perceived and felt. Enough, however, was known of these effects to induce its repeal.

It would be strange if, in the face of the example of Great Britain, our principal foreign customer, and of the evils of a system rendered manifest in that country by long and painful experience, and in the face of the immense advantages which, under a more liberal commercial policy, we are already deriving, and must continue to derive, by supplying her starving population with food, the United States should restore a policy which she has been compelled to abandon, and thus diminish her ability to purchase from us the food and other articles which

That the reduced production of some of the chief articles of food in Great Britain, and other parts of Europe, may have contributed to increase the demand for our breadstuffs and provisions, is not doubted; but that the great and efficient cause of this increased demand, and of increased prices, consists in the removal of artificial restrictions heretofore imposed, is deemed to be equally certain. That our exports of food, already increased and increasing beyond former example, under the more liberal policy which has been adopted, will be still vastly enlarged, unless they be checked or prevented by a restoration of the protective policy, cannot be doubted. That our commercial and navigating interests will be enlarged in a corresponding ratio with the increase of our trade is equally certain; while our manufacturing interests will still be the favored interests of the country, and receive the incidental protection afforded them by revenue duties; and more than this they cannot justly demand.

In my annual message of December last, a tariff of revenue duties based upon the principles of the existing law was recommended, and I have seen no reason to change the opinion then expressed. In view of the probable beneficial effects of that law, I recommend that the policy established by it be maintained. It has but just commenced to oper

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ate; and to abandon or modify it without giving it a fair trial, would be inexpedient and unwise. Should defects in any of its details be ascertained, by actual experience, to exist, these may be hereafter corrected; but until such defects shall become manifest, the act should be fairly tested.

It is submitted for your consideration whether it may not be proper, as a war measure, to impose revenue duties on some of the articles now embraced in the free list. Should it be deemed proper to impose such duties, with a view to raise revenue to meet the expenses of the war with Mexico, or to avoid to that extent the creation of a public debt, they may be repealed when the emergency which gave rise to them shall cease to exist, and constitute no part of the permanent policy of the country.

[DECEMBER, 1846.

they have no power to levy a tax upon them as upon other lands within their limits, held by other proprietors than the United States, for the support of their local governments.

The beneficial effects of the graduation principle have been realized by some of the States owning the lands within their limits, in which it has been adopted. They have been demonstrated also by the United States acting as the trustee of the Chickasaw tribe of Indians in the sale of their lands lying within the States of Mississippi and Alabama. The Chickasaw lands, which would not command in the market the minimum price established by the laws of the United States for the sale of their lands, were, in pursuance of the treaty of 1834 with that tribe, subsequently offered for sale at graduated and reduced rates for limited periods. The result was that large quantities of these lands were pursold. The lands were disposed of at their real value, and many persons of limited means were enabled to purchase small tracts, upon which they have settled with their families. That similar results would be produced by the adoption of the graduation policy by the United States, in all the States in which they are the owners of large bodies of lands which have been long in the market, cannot be doubted. It cannot be a sound policy to withhold large quantities of the public lands from the use and occupation of our citizens, by fixing upon them prices which experience has shown they will not command. On the contrary, it is a wise policy to afford facilities to our citizens to become the owners, at low and moderate rates, of freeholds of their own, instead of being the tenants and dependants of others. If it be apprehended that these lands, if reduced in price, would be secured in large quantities by speculators or capitalists, the sales may be restricted, in limited quantities, to actual settlers, or persons purchasing for purposes of cultivation.

The act of the sixth of August last, "to provide for the better organization of the treasury, and for the collection, safekeeping, transfer, and disburse-chased, which would otherwise have remained unment of the public revenue," has been carried into execution as rapidly as the delay necessarily arising out of the appointment of new officers, taking and approving their bonds, and preparing and securing proper places for the safekeeping of the public money, would permit. It is not proposed to depart in any respect from the principles or policy on which this great measure is founded. There are, however, defects in the details of the measure, developed by its practical operation, which are fully set forth in the report of the Secretary of the Treasury, to which the attention of Congress is invited; these defects would impair to some extent the successful operation of the law at all times, but are especially embarrassing when the country is engaged in a war, when the expenditures are greatly increased, when loans are to be effected, and the disbursements are to be made at points many hundred miles distant, in some cases, from any depository, and a large portion of them in a foreign country. The modifications suggested in the report of the Secretary of the Treasury are recommended to your favorable consideration.

In connection with this subject I invite your attention to the importance of establishing a branch of the mint of the United States at New York. Two-thirds of the revenue derived from customs being collected at that point, the demand for specie to pay the duties will be large; and a branch mint where foreign coin and bullion could be immediately converted into American coin, would greatly facilitate the transaction of the public business, enlarge the circulation of gold and silver, and be, at the same time, a safe depository of the public money.

The importance of graduating and reducing the price of such of the public lands as have been long offered in the market at the minimum rate authorized by existing laws and remain unsold, induces me again to recommend the subject to your favorable consideration. Many millions of acres of these lands have been offered in the market for more than thirty years, and larger quantities for more than ten or twenty years; and being of an inferior quality, they must remain unsalable for an indefinite period, unless the price at which they may be purchased shall be reduced. To place a price upon them above their real value is not only to prevent their sale, and thereby deprive the treasury of any income from that source, but it is unjust to the States in which they lie, because it retards their growth and increase of population, and because

In my last annual message I submitted for the consideration of Congress the present system of managing the mineral lands of the United States, and recommended that they should be brought into market and sold, upon such terms and under such restrictions as Congress might prescribe. By the act of the eleventh of July last, "the reserved lead mines and contiguous lands in the States of Illinois and Arkansas and Territories of Wisconsin and Iowa," were authorized to be sold. The act is confined, in its operation, to "lead mines and contiguous lands."

A large portion of the public lands containing copper and other ores is represented to be very valuable, and I recommend that provision be made authorizing the sale of these lands, upon such terms and conditions as their supposed value may, in the judgment of Congress, be deemed advisable, having due regard to the interests of such of our citizens as may be located upon them.

It will be important, during your present session, to establish a territorial government and to extend the jurisdiction and laws of the United States over the Territory of Oregon. Our laws regulating trade and intercourse with the Indian tribes east of the Rocky Mountains, should be extended to the Pacific Ocean; and for the purpose of executing them, and preserving friendly relations with the Indian tribes within our limits, an additional number of Indian agencies will be required, and should

DECEMBER, 1846.]

The President's Message.

be authorized by law. The establishment of custom-houses, and of post-offices and post roads, and provisions for the transportation of the mail on such routes as the public convenience will suggest, require legislative authority. It will be proper, also, to establish a surveyor general's office in that territory, and to make the necessary provision for surveying the public lands, and bringing them into market. As our citizens who now reside in that distant region have been subjected to many hardships, privations, and sacrifices in their emigration, and by their improvements have enhanced the value of the public lands in the neighborhood of their settlements, it is recommended that liberal grants be made to them of such portions of these lands as they may occupy, and that similar grants or rights of pre-emption be made to all who may emigrate thither within a limited period, to be prescribed by law.

The report of the Secretary of War contains detailed information relative to the several branches of the public service connected with that department. The operations of the army have been of a satisfactory and highly gratifying character.

I recommend to your early and favorable consideration the measures proposed by the Secretary of War for speedily filling up the rank and file of the regular army, for its greater efficiency in the field, and for raising an additional force to serve during the war with Mexico.

Embarrassment is likely to arise for want of legal provision authorizing compensation to be made to the agents employed in the several States and Territories to pay the revolutionary and other pensioners the amounts allowed them by law. Your attention is invited to the recommendations of the Secretary of War on this subject. These agents incur heavy responsibilities and perform important duties, and no reason exists why they should not be placed on the same footing, as to compensation, with other disbursing officers.

Our relations with the various Indian tribes continue to be of a pacific character. The unhappy dissensions which have existed among the Cherokees for many years past have been healed. Since my last annual message important treaties have been negotiated with some of the tribes, by which the Indian title to large tracts of valuable land within the limits of the States and Territories has been extinguished, and arrangements made for removing them to the country west of the Mississippi. Between three and four thousand, of different tribes, have been removed to the country provided for them by treaty stipulations, and arrangements have been made for others to follow.

In our intercourse with the several tribes particular attention has been given to the important subject of education. The number of schools established among them has been increased, and additional means provided, not only for teaching them the rudiments of education, but of instructing them in agriculture and the mechanic arts.

I refer you to the report of the Secretary of the Navy for a satisfactory view of the operations of the department under his charge during the past year. It is gratifying to perceive, that while the war with Mexico has rendered it necessary to employ an unusual number of our armed vessels on her coasts, the protection due to our commerce in other quarters of the world has not proved insufficient. No means will be spared to give efficiency to the naval

[29TH CONG. service in the prosecution of the war; and I am happy to know that the officers and men anxiously desire to devote themselves to the service of their country in any enterprise, however difficult of execution.

I recommend to your favorable consideration the proposition to add to each of our foreign squadrons an efficient sea steamer, and, as especially demanding attention, the establishment at Pensacola of the necessary means of repairing and refitting the vessels of the navy employed in the Gulf of Mexico.

There are other suggestions in the report which deserve, and, I doubt not, will receive, your consideration.

The progress and condition of the mail service for the past year are fully presented in the report of the Postmaster General. The revenue for the year ending on the thirtieth of June last amounted to three million four hundred and eighty-seven thousand one hundred and ninety-nine dollars, which is eight hundred and two thousand six hundred and forty-two dollars and forty-five cents less than that of the preceding year. The payments for that department during the same time amounted to four million eighty-four thousand two hundred and ninety-seven dollars and twenty-two cents. Of this sum five hundred and ninety-seven thousand and ninety-seven dollars and eighty cents have been drawn from the treasury. The disbursements for the year were two hundred and thirty-six thousand four hundred and thirty-four dollars and seventyseven cents less than those of the preceding year. While the disbursements have been thus diminished, the mail facilities have been enlarged by new mail routes of five thousand seven hundred and thirtynine miles; an increase of transportation of one million seven hundred and sixty-four thousand one hundred and forty-five miles, and the establishment of four hundred and eighteen new post-offices. Contractors, postmasters, and others, engaged in this branch of the service, have performed their duty with energy and faithfulness deserving commendation. For many interesting details connected with the operations of this establishment, you are referred to the report of the Postmaster General; and his suggestions for improving its revenues are recommended to your favorable consideration. I repeat the opinion expressed in my last annual Message, that the business of this department should be so regulated, that the revenues derived from it should be made to equal the expenditures; and it is believed that this may be done by proper modifications of the present laws, as suggested in the report of the Postmaster General, without changing the present rates of postage.

With full reliance upon the wisdom and patriotism of your deliberations, it will be my duty, as it will be my anxious desire, to co-operate with you in every constitutional effort to promote the welfare and maintain the honor of our common country. JAMES K. POLK.

WASHINGTON, December 8, 1846.

The reading of the Message occupied upwards of two hours.

On motion of Mr. SPEIGHT, it was

Resolved, That 3,500 copies of the Message, and 1,500 copies of the Message and documents, in addition to the usual number, be printed for the use of the Senate.

2D SESS.]

Return of Santa Anna to Mexico.

WEDNESDAY, December 9.

[DECEMBER, 1846.

upon an equal footing with the original States, and with such other provisions and conditions as

The Journal of yesterday was read and ap- may be provided for by the convention framing proved.

Report of Secretary of Treasury. The VICE PRESIDENT laid before the Senate the annual report of the Secretary of the Treasury on the state of the finances.

Mr. SPEIGHT remarked that the report was probably a lengthened one, and its reading would occupy a large portion of time. Unless, therefore, any Senator desired it should be read, he would move to dispense with the reading.

No Senator desiring the report to be read, the motion was agreed to.

Printing of the Report.

On motion of Mr. SPEIGHT, it was Ordered, That the report be printed; and that five thousand copies in addition to the usual number be printed for the use of the Senate.

HOUSE OF REPRESENTATIVES.
WEDNESDAY, December 9.

The Journal of yesterday was read and approved.

The following members, in addition to those who were present on the first day of the session, have since appeared in their seats: Mr. SYKES, of New Jersey; Mr. LEAKE and Mr. MCDOWELL, of Virginia; Mr. LIGON, of Maryland; Mr. BELL, of Kentucky; Mr. DELANO, of Ohio; Mr. EWING, of Pennsylvania; Mr. DOBRIN, of North Carolina; and Mr. HOUSTON, of Alabama.

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said constitution and form of State government, but shall not be presented for admittance until the same shall be accepted and ratified by the qualified electors of this Territory."

Mr. D. said, accompanying the constitution now presented, would be found a letter from the Secretary of the Territory, transmitting a copy of the proclamation of the Governor, declaring the adoption of the constitution by a majority of the qualified electors at the time and in the manner prescribed in the law calling the convention.

Mr. D. said that the vote on the constitution was had on the first Monday in August, the third day of the month, and that Congress had adjourned on the tenth of August. It was therefore impossible to know the result of the vote upon the question of the adoption or rejection of the constitution during the last session; indeed, it was not certainly known in the Territory until some time in September. The 6th section of the 13th article of the constitution provides that "the first general election under this constitution shall be held at such time as the Governor of the Territory, by proclamation, may appoint, within three months after its adoption, for the election of a Goyernor, two members of Congress," &c. Under this provision of the constitution the Territorial Governor issued his proclamation for an election, which took place on the 26th of October last. One of the members elected to this House was in the city, and ready to take his seat as soon as an act or joint resolution could be passed admitting the State.

Mr. D. had seized the earliest moment afforded him, after the appointment of the committees, to present the constitution of his State, and the evidence of its ratification by the people. At the last session an act was passed prescribing the constitution of the State of Iowa, referred to were in perfect harmony-the boun&c. The constitution and the act of Congress daries in each being the same.

Mr. D. said he would call the attention of the Committee on Territories, to whom he should move to refer the subject, to the necessity of speedy action on their part, so that the complete admission of Iowa might be consummated at the earliest day practicable.

The constitution was then referred to the Committee on Territories.

IN SENATE.

WEDNESDAY, December 16. Return of Santa Anna to Mexico. Mr. BARROW submitted the following resolution for consideration:

Resolved, That the President of the United States be requested to inform the Senate, if any officer or agent was sent by him or by his direction to Ha vana, to advise, procure, or in any manner pro

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