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DOCUMENTS.

STATE PAPERS.

THE PRESIDENT'S ANNUAL MESSAGE TO THE CONGRESS OF THE UNITED STATES, DEC. 5th, 1848.

[Continued from page 266.]

In anticipation of the establishment of regular governments over the acquired territories, a joint commission of officers of the army and navy has been ordered to proceed to the coast of California and Oregon, for the purpose of making reconnoissances and a report as to the proper sites for the erection of fortifications or other defensive works on land, and of suitable situation for naval stations. The information which may be expected from a scientific and skilful examination of the whole face of the coast will be eminently useful to congress, when they come to consider the propriety of making appropriations for these great national objects. Proper defences on land will be necessary for the security and protection of our possessions; and the establishment of navy-yards, and a dock for the repair and construction of vessels, will be important alike to our navy and commercial marine. Without such establishments, every vessel, whether of the navy or of the merchant service, requiring repair, must, at great expense, come round Cape Horn to one of our Atlantic yards for that purpose. With such establishments, vessels, it is believed, may be built or repaired as cheaply in California as upon the Atlantic coast. They would give employment to many of our enterprising ship-builders and mechanics, and greatly facilitate and enlarge our commerce in the Pacific. As it is ascertained that mines of gold, silver, copper and quicksilver, exist in New Mexico and California, and that nearly all the lands, where they are found, belong to the United States, it is deemed important to the public interests that a provision be made for a geological and mineralogical examination of these regions. Measures should be adopted to preserve the mineral lands, especially such as contain the precious metals, for the use of the United States; or, if brought into the market, to separate them from the farming lands, and dispose of them in such a manner as to secure a large return of money to the treasury, and at the same time lead to the development of their wealth by individual proprietors and purchasers. To do this, it will be necessary to provide for an immediate survey and location of the lots. If congress should deem it proper to dispose of the mineral lands, they should be sold in small quantities, and at a fixed minimum price.

I recommend that surveyor generals' offices be authorized to be established in New Mexico and California, and provision made for surveying and bringing the public lands into market at the earliest practicable period. In disposing of these lands, I recommend that the right of pre-emption be secured, and liberal grants made to the early emigrants who have settled or may settle upon them.

It will be important to extend our revenue laws over these territories, and especially over California, at an early period. There is already a considerable commerce with California; and until ports of entry shall be established and collectors appointed, no revenue can be received.

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If these and other necessary and proper measures be adopted for the development of the wealth and resources of New Mexico and California, and regular territorial governments be established over them, such will probably be the rapid enlargement of our commerce and navigation, and such the addition to the national wealth, that the present generation may live to witness the controlling commercial and monetary power of the world transferred from London and other European emporiums to the city of New York.

The apprehensions which were entertained by some of our statesmen, in the earlier periods of the government, that our system was incapable of operating with sufficient energy and success over largely extended territorial limits, and that if this were attempted it would fall to pieces by its own weakness, have been dissipated by our experience. By the division of power between the states and federal government, the latter is found to operate with as much energy in the extremes as in the centre. It is as efficient in the remotest of the thirty states which now compose the union, as it was in the thirteen states which formed our constitution. Indeed, it may well be doubted whether, if our present population had been confined within the limits of the original thirteen states, the tendencies to centralization and consolidation would not have been such as to have encroached upon the essential reserved rights of the states, and thus to have made the federal government a widely different one, practically, from what it is in theory, and was intended to be by its framers. So far from entertaining apprehensions of the safety of our system by the extension of our territory, the belief is confidently entertained that each new state gives strength and an additional guarantee for the preservation of the union itself.

In pursuance of the provisions of the thirteenth article of the treaty of peace, friendship, limits and settlement, with the republic of Mexico, and of the act of July the 29th, 1848, claims of our citizens which had been already liquidated and decided against the Mexican republic," amounting, with the interest thereon, to two millions, twenty-three thousand, eight hundred and thirty-two dollars and fifty-one cents, have been liquidated and paid. There remain to be paid of these claims, seventy-four thousand, one hundred and ninety-two dollars and twenty-six cents.

Congress, at its last session, having made no provision for executing the fifteenth article of the treaty, by which the United States assume to make satisfaction for the "unliquidated claims" of our citizens against Mexico, to an amount not exceeding three and a quarter millions of dollars," the subject is again recommended to your favourable consideration.

The exchange of ratifications of the treaty with Mexico took place on the thirtieth of May, 1848. Within one year after that time the commissioner and surveyor which each government stipulates to appoint, are required to meet "at the port of San Diego, and proceed to run and mark the said boundary in its whole course to the mouth of the Rio Bravo del Norte." It will be seen from this provision, that the period within which a commissioner and surveyor of the respective governments are to meet at San Diego, will expire on the thirtieth of May, 1849. Congress, at the close of its last session, made an appropriation for "the expenses of running and marking the boundary line" between the two countries, but did not fix the amount of salary which should be paid to the commissioner and surveyor to be appointed on the part of the United States. It is desirable that the amount of compensation which they shall receive should be prescribed by law, and not left, as at present, to executive discretion.

Measures were adopted at the earliest practicable period to organize the "territorial government of Oregon," as authorized by the act of the fourteenth of August last. The governor and marshal of the territory, accompanied by a small military escort, left the frontier of Missouri in September last, and

took the southern route, by the way of Santa Fe and the river Gila, to California, with the intention of proceeding thence in one of our vessels of war to their destination. The governor was fully advised of the great importance of his early arrival in the country, and it is confidently believed he may reach Oregon in the latter part of the present month, or early in the next. The other officers for the territory have proceeded by sea.

In the month of May last, I communicated information to Congress that an Indian war had broken out in Oregon, and recommended that authority be given to raise an adequate number of volunteers to proceed without delay to the assistance of our fellow citizens in that territory. The authority to raise such a force not having been granted by Congress, as soon as their services could be dispensed with in Mexico, orders were issued to the regiment of mounted riflemen to proceed to Jefferson barracks, in Missouri, and to prepare to march to Oregon as soon as the necessary provision could be made. Shortly before it was ready to march, it was arrested by the provision of the act passed by congress on the last day of the last session, which directed that all the non-commissioned officers, musicians, and privates of that regiment, who had been in service in Mexico, should, upon their application, be entitled to be discharged. The effect of this provision was to disband the rank and file of the regiment; and before their places could be filled by recruits, the season had so far advanced that it was impracticable for it to proceed until the opening of the next spring.

In the month of October last, the accompanying communication was received from the governor of the temporary government of Oregon, giving information of the continuance of the Indian disturbance, and of the destitution and defenceless condition of the inhabitants. Orders were immediately transmitted to the commander of our squadron on the Pacific, to despatch to their assistance a part of the naval forces on that station, to furnish them with arms and ammunition, and to continue to give them such aid and protection as the navy could afford, until the army could reach the country.

It is the policy of humanity, and one which has always been pursued by the United States, to cultivate the good will of the aboriginal tribes of this continent, and to restrain them from making war, and indulging in excesses, by mild means, rather than by force. That this could have been done with the tribes in Oregon, had that territory been brought under the government of our laws at an earlier period, and had suitable measures been adopted by congress, such as now exist in our intercourse with the other Indian tribes within our limits, cannot be doubted. Indeed, the immediate and only cause of the existing hostility of the Indians of Oregon is represented to have been, the long delay of the United States in making to them some trifling compensation, in such articles as they wanted, for the country now occupied by our emigrants, which the Indians claimed, and over which they formerly roamed. This compensation had been promised to them by the temporary government established in Oregon, but its fulfilment had been postponed from time to time, for nearly two years, whilst those who made it had been anxiously waiting for congress to establish a territorial government over the country. The Indians became at length distrustful of their good faith, and sought redress by plunder and massacre, which finally led to the present difficulties. A few thousand dollars in suitable presents, as a compensation for the country which had been taken possession of by our citizens, would have satisfied the Indians, and have prevented the war. A small amount of property distributed, it is confidently believed, would soon restore quiet. In this Indian war our fellow citizens of Oregon have been compelled to take the field in their own defence, have performed valuable military services, and been subjected to expenses which have fallen heavily upon them. Justice demands that provision should be made by congress to compensate them for their ser

vices, and to refund to them the necessary expenses which they have incurred.

I repeat the recommendation heretofore made to congress, that provision be made for the appointment of a suitable number of Indian agents to reside among the tribes of Oregon, and that a small sum be appropriated to enable these agents to cultivate friendly relations with them. If this be done, the presence of a small military force will be all that is necessary to keep them in check, and preserve peace.

I recommend that similar provision be made as regards the tribes inhabiting northern Texas, New Mexico, California, and the extensive region lying between our settlements in Missouri and these possessions, as the most effective means of preserving peace upon our borders, and within the recently acquired territories.

The secretary of the treasury will present in his annual report a highly satisfactory statement of the condition of the finances.

The imports for the fiscal year ending on the thirtieth of June last, were of the value of one hundred and fifty-four million, nine hundred and seventyseven thousand, eight hundred and seventy-six dollars; of which the amount exported was twenty-one million, one hundred and twenty-eight thousand, and ten dollars, leaving one hundred and thirty-three million, eight hundred and forty-nine thousand, eight hundred and sixty-six dollars in the country for domestic use.

The value of the exports for the same period was one hundred and fiftyfour million, thirty-two thousand, one hundred and thirty-one dollars, consisting of domestic productions amounting to one hundred and thirty-two million, nine hundred and four thousand, one hundred and twenty-one dollars, and twenty-one million, one hundred and twenty-eight thousand, and ten dollars, of foreign articles.

The receipts into the treasury for the same period exclusive of loans, amounted to thirty-five million, four hundred and thirty-six thousand, seven hundred and fifty dollars, and fifty-nine cents; of which there was derived from customs thirty-one million, seven hundred and fifty-seven thousand, and seventy dollars, and ninety-six cents; from sales of public lands, three million, three hundred and twenty-eight thousand, six hundred and forty-two dollars, and fifty-six cents; and from miscellaneous and incidental sources, three hundred and fifty-one thousand, and thirty-seven dollars and seven cents.

It will be perceived that the revenue from customs for the last fiscal year exceeded by seven-hundred and fifty-seven thousand, and seventy dollars, and ninety-six cents, the estimate of the secretary of the treasury in his last annual report; and that the aggregate receipts during the same period from customs, lands, and miscellaneous sources, also exceeded the estimate by the sum of five hundred and thirty-six thousand, seven hundred and fifty dollars, and fifty-nine cents-indicating, however, a very near approach in the estimate to the actual result.

The expenditures during the fiscal year ending on the thirtieth of June last, including those for the war, and exclusive of payments of principal and interest for the public debt, were forty-two million, eight hundred and eleven thousand, nine hundred and seventy dollars and three cents.

It is estimated that the receipts into the treasury for the fiscal year ending on the thirtieth of June, 1849, including the balance in the treasury on the first of July last, will amount to the sum of fifty-seven million, forty-eight thousand, nine hundred and sixty-nine dollars and ninety cents; of which, thirty-two millions of dollars, it is estimated, will be derived from customs; three millions of dollars from the sales of the public lands; and one million, two hundred thousand dollars from miscellaneous and incidental sources, including the premium upon the loan, and the amount paid and to be paid into

the treasury, on account of military contributions in Mexico and the sales of arms and vessels and other public property rendered unnecessary for the use of the government by the termination of the war; and twenty million, six hundred and ninety-five thousand, four hundred and thirty-five dollars and thirty cents from loans already negotiated, including treasury notes funded, which, together with the balance in the treasury on the first of July last, make the sum estimated.

The expenditures for the same period, including the necessary payment on account of the principal and interest of the public debt, and the principal and interest of the first instalment due to Mexico on the thirtieth of May next, and other expenditures growing out of the war, to be paid during the present year, will amount, including the reimbursement of treasury notes, to the sum of fifty-four million, one hundred and ninety-five thousand, two hundred and seventy-five dollars and six cents; leaving an estimated balance in the treasury on the first of July, 1849, of two million, eight hundred and fifty-three thousand, six hundred and ninety-four dollars and eighty-four cents.

The secretary of the treasury will present, as required by law, the estimate of the receipts and expenditures for the next fiscal year. The expenditures, as estimated for that year, are thirty-three million, two hundred and thirteen thousand, one hundred and fifty-two dollars and seventy-three cents, including three millions, seven hundred and ninety-nine thousand, one hundred and two dollars and eighteen cents for the interest on public debt, and three million, five hundred and forty thousand dollars for the principal and interest due to Mexico on the thirtieth of May, 1850; leaving the sum of twenty-five mil. lion, eight hundred and seventy-four thousand and fifty dollars, and thirtyfive cents; which, it is believed, will be ample for the ordinary peace expenditures.

The operations of the tariff act of 1846 have been such during the past year as fully to meet the public expectation, and to confirm the opinion heretofore expressed of the wisdom in the change in our revenue system which was effected by it. The receipts under it into the treasury for the last fiscal year after its enactment exceeded, by the sum of five millions, forty-four thousand, four hundred and three dollars and nine cents, the amount collected during the first fiscal year under the tariff act of 1842, ending the thirtieth day of June, 1846. The total revenue realized from the commencement of its operation, on the first of December, 1846, until the close of the last quarter, on the thirtieth of December last, being twenty-two months, was fifty-six million, six hundred and fifty-four thousand, five hundred and sixty-three dollars and seventy-nine cents-being a much larger sum than was ever before received from duties during any equal period under the tariff acts of 1824, 1828, 1832, and 1842. Whilst, by the repeal of highly protective and prohibitory duties the revenue has been increased, the taxes on the people have been diminished. They have been relieved from the heavy amounts with which they were bur dened under former laws in the form of increased prices or bounties paid to favoured classes and pursuits.

The predictions which were made, that the tariff act of 1846 would reduce the amount of revenue below that collected under the act of 1842, and would prostrate the business and destroy the prosperity of the country, have not been verified. With an increased and increasing revenue, the finances are in a highly flourishing condition. Agriculture, commerce and navigation, are prosperous; the prices of manufactured fabrics, and of other products, are much less injuriously affected than was to have been anticipated, from the unprecedented revulsions, which, during the last and present year, have overwhelmed the industry and paralyzed the credit and commerce of so many great and enlightened nations of Europe.

Severe commercial revulsions abroad have always heretofore operated to

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