THE FIRST JAPANESE TREATY.

Japan's ports were closed to foreigners as late as the beginning of the second half of the nineteenth century, and mariners wrecked on her shores got short shrift. The natives refused to enter into commercial relations with any save their fellows. In 1832, 1845, and 1849, vessels were sent to establish commercial relations with Japan, but without avail. Finally, Commodore M. C. Perry, bearing instructions prepared by Secretary of State Daniel Webster, set sail in November, 1852, with a respectable naval force, prepared to secure a treaty by persuasion, if possible, by force if necessary. He succeeded; two Japanese ports were opened to our trade.

The preceding picture shows Perry, attended by his marines and sailors, forcing an audience upon the authorities. See the articles entitled "Japan" and "Japan, Treaties with," in the Encyclopedic Index for a full statement of the history of that nation and of our relations with her.

The ratification of the treaty with Portugal has been duly exchanged between the two Governments. This Government has not been inattentive to the interests of those of our citizens who have claims on the Government of Spain founded on express treaty stipulations, and a hope is indulged that the representations which have been made to that Government on this subject may lead ere long to beneficial results.

A correspondence has taken place between the Secretary of State and the minister of Her Britannic Majesty accredited to this Government on the subject of Alexander McLeod's indictment and imprisonment, copies of which are herewith communicated to Congress.

In addition to what appears from these papers, it may be proper to state that Alexander McLeod has been heard by the supreme court of the State of New York on his motion to be discharged from imprisonment, and that the decision of that court has not as yet been pronounced.

The Secretary of State has addressed to me a paper upon two subjects interesting to the commerce of the country, which will receive my consideration, and which I have the honor to communicate to Congress.

So far as it depends on the course of this Government, our relations of good will and friendship will be sedulously cultivated with all nations. The true American policy will be found to consist in the exercise of a spirit of justice, to be manifested in the discharge of all our international obligations to the weakest of the family of nations as well as to the most powerful. Occasional conflicts of opinion may arise, but when the discussions incident to them are conducted in the language of truth and with a strict regard to justice the scourge of war will for the most part The time ought to be regarded as having gone by when a resort to arms is to be esteemed as the only proper arbiter of national differences.

The census recently taken shows a regularly progressive increase in our population. Upon the breaking out of the War of the Revolution our numbers scarcely equaled 3,000,000 souls; they already exceed 17,000,000, and will continue to progress in a ratio which duplicates in a period of about twenty-three years. The old States contain a territory sufficient. in itself to maintain a population of additional millions, and the most populous of the new States may even yet be regarded as but partially settled, while of the new lands on this side of the Rocky Mountains, to say nothing of the immense region which stretches from the base of those mountains to the mouth of the Columbia River, about 770,000,000 acres, ceded and unceded, still remain to be brought into market. We hold out to the people of other countries an invitation to come and settle among us as members of our rapidly growing family, and for the blessings which we offer them we require of them to look upon our country as their country and to unite with us in the great task of preserving our institutions and thereby perpetuating our liberties. No motive exists for foreign conquest; we desire but to reclaim our almost illimitable wildernesses

and to introduce into their depths the lights of civilization. While we shall at all times be prepared to vindicate the national honor, our most earnest desire will be to maintain an unbroken peace.

In presenting the foregoing views I can not withhold the expression of the opinion that there exists nothing in the extension of our Empire over our acknowledged possessions to excite the alarm of the patriot for the safety of our institutions. The federative system, leaving to each State the care of its domestic concerns and devolving on the Federal Government those of general import, admits in safety of the greatest expansion; but at the same time I deem it proper to add that there will be found to exist at all times an imperious necessity for restraining all the functionaries of this Government within the range of their respective powers, thereby preserving a just balance between the powers granted to this Government and those reserved to the States and to the people.

From the report of the Secretary of the Treasury you will perceive that the fiscal means, present and accruing, are insufficient to supply the wants of the Government for the current year. The balance in the Treasury on the 4th day of March last not covered by outstanding drafts, and exclusive of trust funds, is estimated at $860,000. This includes the sum of $215,000 deposited in the Mint and its branches to procure metal for coining and in process of coinage, and which could not be withdrawn without inconvenience, thus leaving subject to draft in the various depositories the sum of $645,000. By virtue of two several acts of Congress the Secretary of the Treasury was authorized to issue on and after the 4th day of March last Treasury notes to the amount of $5,413,000, making an aggregate available fund of $6,058,000 on hand.

But this fund was chargeable, with outstanding Treasury notes redeemable in the current year and interest thereon, to the estimated amount of $5,280,000. There is also thrown upon the Treasury the payment of a large amount of demands accrued in whole or in part in former years, which will exhaust the available means of the Treasury and leave the accruing revenue, reduced as it is in amount, burthened with debt and charged with the current expenses of the Government.

The aggregate amount of outstanding appropriations on the 4th day of March last was $33,429,616.50, of which $24,210,000 will be required during the current year; and there will also be required for the use of the War Department additional appropriations to the amount of $2,511,132.98, the special objects of which will be seen by reference to the report of the Secretary of War. The anticipated means of the Treasury are greatly inadequate to this demand. The receipts from customs for the last three quarters of the last year and first quarter of the present year amounted to $12,100,000; the receipts for lands for the same time to $2,742,450, shewing an average revenue from both sources of $1,236,870 per month.

A gradual expansion of trade, growing out of a restoration of confidence, together with a reduction in the expenses of collecting and punctuality on the part of collecting officers, may cause an addition to the

monthly receipts from the customs. They are estimated for the residue of the year from the 4th of March at $12,000,000. The receipts from the public lands for the same time are estimated at $2,500,000, and from miscellaneous sources at $170,000, making an aggregate of available fund within the year of $15,315,000, which will leave a probable deficit of $11,406,132.98. To meet this some temporary provision is necessary until the amount can be absorbed by the excess of revenues which are anticipated to accrue at no distant day.

There will fall due within the next three months Treasury notes of the issues of 1840, including interest, about $2,850,000. There is chargeable in the same period for arrearages for taking the Sixth Census $294,000, and the estimated expenditures for the current service are about $8,100,000, making the aggregate demand upon the Treasury prior to the 1st of September next about $11,340,000.

The ways and means in the Treasury and estimated to accrue within the above-named period consist of about $694,000 of funds available on the 28th ultimo, an unissued balance of Treasury notes authorized by the act of 1841 amounting to $1,955,000, and estimated receipts from all sources of $3,800,000, making an aggregate of about $6,450,000, and leaving a probable deficit on the 1st of September next of $4,845,000.

In order to supply the wants of the Government, an intelligent constituency, in view of their best interests, will without hesitation submit to all necessary burthens. But it is nevertheless important so to impose them as to avoid defeating the just expectations of the country growing out of preexisting laws. The act of the 2d of March, 1833, commonly called the "compromise act," should not be altered except under urgent necessities, which are not believed at this time to exist. One year only remains to complete the series of reductions provided for by that law, at which time provisions made by the same law, and which then will be brought actively in aid of the manufacturing interests of the Union, will not fail to produce the most beneficial results. Under a system of discriminating duties imposed for purposes of revenue, in unison with the provisions of existing laws, it is to be hoped that our policy will in the future be fixed and permanent, so as to avoid those constant fluctuations which defeat the very objects they have in view. We shall thus best maintain a position which, while it will enable us the more readily to meet the advances of other countries calculated to promote our trade and commerce, will at the same time leave in our own hands the means of retaliating with greater effect unjust regulations.

In intimate connection with the question of revenue is that which makes provision for a suitable fiscal agent, capable of adding increased facilities in the collection and disbursement of the public revenues, rendering more secure their custody, and consulting a true economy in the great, multiplied, and delicate operations of the Treasury Department. Upon such an agent depends in an eminent degree the establishment of a currency of uniform value, which is of so great importance to all the essential interests of society, and on the wisdom to be manifested in its

creation much depends. So intimately interwoven are its operations, not only with the interests of individuals, but of States, that it may be regarded to a great degree as controlling both. If paper be used as the chief medium of circulation, and the power be vested in the Government of issuing it at pleasure, either in the form of Treasury drafts or any other, or if banks be used as the public depositories, with liberty to regard all surpluses from day to day as so much added to their active capital, prices are exposed to constant fluctuations and industry to severe suffering. In the one case political considerations directed to party pur poses may control, while excessive cupidity may prevail in the other. The public is thus constantly liable to imposition. Expansions and contractions may follow each other in rapid succession-the one engendering a reckless spirit of adventure and speculation, which embraces States as well as individuals, the other causing a fall in prices and accomplishing an entire change in the aspect of affairs. Stocks of all sorts rapidly decline, individuals are ruined, and States embarrassed even in their efforts to meet with punctuality the interest on their debts. Such, unhappily, is the condition of things now existing in the United States. These effects may readily be traced to the causes above referred to. The public revenues, being removed from the then Bank of the United States, under an order of a late President, were placed in selected State banks, which, actuated by the double motive of conciliating the Government and augmenting their profits to the greatest possible extent, enlarged extravagantly their discounts, thus enabling all other existing banks to do the same; large dividends were declared, which, stimulating the cupidity of capitalists, caused a rush to be made to the legislatures of the respective States for similar acts of incorporation, which by many of the States, under a temporary infatuation, were readily granted, and thus the augmentation of the circulating medium, consisting almost exclusively of paper, produced a most fatal delusion. An illustration derived from the land sales of the period alluded to will serve best to show the effect of the whole system. The average sales of the public lands for a period of ten years prior to 1834 had not much exceeded $2,000,000 per annum. In 1834 they attained in round numbers to the amount of $6,000,000; in the succeeding year of 1835 they reached $16,000,000, and the next year of 1836 they amounted to the enormous sum of $25,000,000, thus crowding into the short space of three years upward of twenty-three years' purchase of the public domain. So apparent had become the necessity of arresting this course of things. that the executive department assumed the highly questionable power of discriminating in the funds to be used in payment by different classes of public debtors-a discrimination which was doubtless designed to correct this most ruinous state of things by the exaction of specie in all payments for the public lands, but which could not at once arrest the tide which had so strongly set in. Hence the demands for specie became