useful to the commerce of all nations. I need not say that the importance of these considerations has been greatly enhanced by the sudden and vast development which the interests of The United States have attained in California and Oregon; and the policy heretofore adopted in regard to those islands will be steadily pursued.

It is gratifying not only to those who consider the commercial interests of nations, but also to all who favour the progress of knowledge and the diffusion of religion, to see a community emerge from a savage state and attain such a degree of civilization in those distant seas.

It is much to be deplored that the internal tranquillity of the Mexican Republic should again be seriously disturbed; for, since the peace between that Republic and The United States, it had enjoyed such comparative repose that the most favourable 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 apprehending that their example might be followed by others, I caused orders to be issued for the purpose of preventing any hostile expeditions against Mexico from being set on foot in violation of the laws of The United States. I likewise issued a proclamation upon the subject, a copy of which is herewith laid before you. This appeared to be rendered imperative by the obligations of Treaties and the general duties of good neighbourhood.

In my last annual message I informed Congress that citizens of The United States had undertaken the connection of the two oceans by means of a railroad across the Isthmus of Tehuantepec, under a grant of the Mexican Government to a citizen of that Republic; and that this enterprise would probably be prosecuted with energy whenever Mexico should consent to such stipulations with the Government of The United States as should impart a feeling of security to those who should invest their property in the enterprise.

A Convention between the 2 Governments for the accomplishment of that end has been ratified by this Government, and only awaits the decision 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 decision will be governed by just and enlightened views, as well of the general importance of the object, as of her own interests an 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, the shortest and the best for travellers and merchandise, and equally open to all the world. It has sought to obtain no territorial acquisition, nor any advantages peculiar to itself; and it would see, with the greatest regret, that Mexico should oppose any obstacle to the accomplishment of an enterprise which promises so much convenience to the whole commercial world, and such eminent advantages to Mexico herself. Impressed with these sentiments and these convictions, the Government will continue to exert all proper efforts to bring about the necessary arrangement with the Republic of Mexico for the speedy completion of the work.

For some months past, the Republic of Nicaragua has been the theatre of one of those civil convulsions from which the cause of free institutions 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 2 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 merchandize has been transported over it; and when the canal shall have been completed according to the original plan, the means of communication will be further improved. It is understood that a considerable part of the railroad across the Isthmus of Panama has been completed, and that the mail and passengers will in future be conveyed thereon.

Whichever of the several routes between the two oceans may ultimately prove 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 effect.

Peace has been concluded between the contending parties in the Island of St. Domingo, and it is hoped, upon a durable basis. Such is the extent of our commercial relations with that island, that The United States cannot fail to feel a strong interest in its tranquillity.

The office of Commissioner to China remains unfilled; several persons have 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 compensation. The annual allowance by law is 6,000 dollars, and there is no provision for any outfit. I earnestly

Our recommend the consideration of this subject to Congress. commerce with China is highly important, and is becoming more and more so, in consequence of the increasing intercourse between our ports on the Pacific Coast and Eastern Asia. China is understood to be a country in which living is very expensive, and I know of no reason why the American Commissioner sent thither should not be placed, in regard to compensation, on an equal footing with Ministers who represent this country at the Courts of Europe.

By reference to the report of the Secretary of the Treasury, it will be seen that the aggregate receipts for the last fiscal year amounted to 52,312,979 dollars; which, with the balance in the Treasury on the 1st July, 1850, gave, as the available means for the year, the sum of 58,917,524 dollars.

The total expenditures for the same period were 48,005,878 dollars.

The total imports for the year ending

30th June, 1851, were

Of which there were in specie

The exports for the same period were

Dollars.

Dollars. 215,725,995

4,967,901

217,517,130

9,738,695

29,231,880

217,517,13Q

Of which there were of domestic products 178,546,555
Foreign goods re-exported

Specie

Since the 1st of December last, the payments in cash on account of the public debt, exclusive of interest, have amounted to 7,501,456 dollars; which, however, includes the sum of 3,242,400 dollars paid under the 12th Article of the Treaty with Mexico, and the further sum of 2,591,213 dollars, 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 ultimo, exclusive of the stock authorized to be issued to Texas by the Act of 9th September, 1850, was 62,560,395 dollars.

The receipts for the next fiscal year are estimated at 51,800,000 dollars; which, with the probable unappropriated balance in the Treasury on the 30th June next, will give, as the probable available means for that year, the sum of 63,258,743 dollars.

It has been deemed proper, in view of the large expenditures consequent upon the acquisition of territory from Mexico, that the estimates for the next fiscal year should be laid before Congress in such manner as to distinguish the expenditures so required from the otherwise ordinary demands upon the Treasury.

The total expenditures for the next fiscal year are estimated at 42,892,299 dollars, of which there is required for the ordinary purposes of the Government, 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 dollars; and for the purposes connected directly or indirectly with those territories, and in the fulfilment of the obligations of the Government, contracted in consequence of their acquisition, the sum of 9,549,101 dollars.

If the views of the Secretary of the Treasury in reference to the expenditures required for these territories shall be met by corresponding action on the part of Congress, and appropriations made in accordance therewith, there will be an estimated unappropriated balance in the Treasury on the 30th June, 1853, of 20,366,443 dollars, wherewith to meet that portion of the public debt due on the 1st of July following, amounting to 6,237,931 dollars, as well as any appropriations which may be made beyond the estimates.

In thus referring to the estimated expenditures on account of our newly-acquired territories, 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 into 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 previous year, exhibit an increase of 43,646,322 dollars. At first view, this condition of our trade with foreign nations would seem to present the most flattering hopes of its future prosperity. An examination of the details of our exports however, will show that the increased value of our exports for the last fiscal year is to be found in the high price of cotton which prevailed during the first half of that year, which price has since declined about one-half.

The value of our exports of breadstuffs and provisions, which it was supposed the incentive of a low tariff and large importations from abroad would have greatly augmented, has fallen from 68,701,921 dollars in 1847, to 26,051,373 dollars in 1850, and to 21,848,653 dollars in 1851, with a strong probability, 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 previous year, also exhibit a decrease amounting to 460,917 dollars, which, with a decline in the value of the exports of tobacco for the same period, make an aggregate decrease in these 2 articles of 1,156,751 dollars.

The policy which dictated a low rate of duties on foreign merchandize, 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 incontestably, that no such result has followed the adoption of this policy. On the contrary, notwithstanding the repeal of the restrictive corn laws in England, the foreign demand for the products of the American farmer has steadily declined, since the short crops and consequent famine in a portion of Europe have been happily replaced by full crops and comparative abundance of food.

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 single item of raw cotton, by 40,000,000 dollars over the value of that export for the year preceding. This is not due to any increased general demand for that article, but to the short crop of the preceding year, which created an increased demand and an augmented price for the crop of last year. Should the cotton crop now going forward to market be only equal in 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 present fiscal year, of at least 40,000,000 dollars, compared with the amount exported for 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 from that quarter for some time to come. This large annual increase of the currency of the world must be attended with its usual results. These have been already partially disclosed, in the enhancement of prices, and a rising spirit of speculation and adventure, tending to overtrading, as well at home as abroad. Unless some salutary check shall be given 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 metals from us, bringing with it, as it has done in former times, the most disastrous consequences to the business and capital of the American people.

The exports of specie to liquidate our foreign debt during the past fiscal year have been 24,263,979 dollars over the amount of specie imported. The exports of specie during the first quarter of the present fiscal year have been 14,651,827 dollars. Should specie continue to be exported at this rate for the remaining 3 quarters of this year, it will drain from our metallic currency during the year ending 30th June, 1852, the enormous amount of 58,607,308 dollars.

In the present prosperous condition of the national finances, it will become the duty of Congress to consider the best mode of paying off the public debt. If the present and anticipated surplus in the Treasury should not be absorbed by appropriations of an extraordinary character, this surplus should be employed in such way, and under such restrictions as Congress may enact, in extinguishing the outstanding debt of the nation.