that establishment; and to remove all doubt of its being possible to remedy, without sacrifices to the state, the evils arising out of a circulation devoid of credit. The report has been printed and submit. ted to the consideration of the General Assembly, and the members of the committee who presented it are deserving of public acknow. ledgment for the zeal with which they served and the difficulties which they overcame.

"It is therefore unquestionable that the primary cause of the existing calamity is the superabundance of notes; it is, consequently, our duty to withdraw them as soon as possible. And as it cannot be expected that the bank will be able to realize so expensive an operation, the state is bound to do it, since the state is a debtor to the bank; and the national credit, which cannot sustain itself on any other basis than justice and good faith, is highly implicated in its circulating medium.

"The government, convinced of the solidity of the reasons above manifested, cannot but deplore the nature of the means which appear obvious and efficient for this opera. tion of paying off the discredited notes. They are these-1st. To contract a loan in specie, sufficient to cover the amount of the notes lent to the government by the bank, by applying new branches of the revenue for the gradual extinction of the same. 2dly. To convert the notes into paper-money of a different standard, that they may circulate throughout the whole empire, by assigning fresh capitals, in order gradually to pay it off; and, 3dly, to sell national property and impose heavy taxes, in order that the proceeds may, in a few years, extin

guish the debt of the government to the Bank.

"Since, therefore, the sacrifice is necessary, and that it becomes imperative, under present circumstances, to avail ourselves of some one of the means pointed out, the government is persuaded that the first is not so dangerous as the se cond, nor so onerous as the third; and it is besides fully sensible of the necessity of taking measures for the administration and settlement of the affairs of the bank, by supporting and securing the circulation of its notes, guaranteeing its deposits, and by obtaining for the sharehold. ers a reasonable profit. I have resolved to draw up, and, by his majesty the Emperor's orders, I have the honour to submit to you the following:

Art. 1. The Bank of Brazil shall be administered by a commission of seven members, four of whom shall be appointed by the govern ment, and three by a majority of votes of a general assembly of the said bank. The government will select the president of the commis. sion from among the seven members, and the said assembly shall fix the monthly remuneration which shall be due to their services. As soon as the commission is installed, all the existing agreements with the bank shall cease.

Art. 2. The directing commission shall by incessantly engaged-first, in withdrawing from circulation all notes which are payable at the bank, or may have a metallic currency; secondly, in ascertaining the exact number of notes in circulation, substituting for them new ones, which shall be signed by two members; thirdly, in winding up all the accounts of the bank, and especially those relating to the debt

of government: fourthly, in liquida. ting all the regular transactions of the bank, which may be found still pending; fifthly, in receiving the active credits of the bank, and liquidating the passive ones forthwith; and sixthly, in examining the state of the Bahia Orphans' Fund, and of St. Paul, and to liquidate both with speed.

Art. 3. The government shall give to the directing commission the necessary instructions, and will decide on cases of doubt, which may occur in the execution of the preceding article.

Art. 4. The nation shall acknowledge the current value of the present notes of the Brazil bank, and those which may be substituted for them, so that they may freely circulate, and be received as readily as specie by the public until they are duly redeemed, in security for which the primitive funds of the bank are assigned-that is, its funds of reserve, or the metallic funds existing in its coffers, the debt of the government, the debts of private individuals to the bank, and every thing else which may constitute the credits of the bank. The deposits in the bank are also assigned as security to the public.

Art. 5. The debt of the government to the bank, before and after the liquidation by the directing commission, shall continue to pay an interest of 1 per cent., which will be given by the public treasury to the said commission, that it may be divided half-yearly among the shareholders.

Art. 6. The directing commis. sion shall render to the government a monthly account of their labours, and shall every year lay before the Legislative Assembly a state. ment of the affairs of the bank, and

of the administration of them; and when the commission has concluded the liquidation of the bank's debts and credits, and redeemed its notes, they shall distribute the balance which may remain among the shareholders, and then dissolve the establishment.

Art. 7. The government shall be authorized to contract a loan in gold or silver specie, equal to the three fifths of the amount of its actual debt to the bank. The produce of this loan shall be exclusively applied to the purchase of notes of the said bank which are in circulation, according to the value they may be found to bear on the market and all the notes thus bought up shall have no longer any value, excepting as payment to the directing commission on account of the said debt to the bank.

Art. 8. The purchased notes from the market, which are to be cancelled and delivered to the directing commission, shall remain for the account of the Junta, and employed in the reserve fund created by the law of the 15th of November, 1827, so that they may be delivered up by the public treasury to the Junta in extinction of the said loan, in proportion as they are received.

Art. 9. The produce of the loan, authorized by the present law, shall not be applied to any purpose but that which is specified in the 7th article, on pain of the penalties attached to those who dissipate the national property; neither shall the bank note withdrawn with that produce be applied to any other purpose than that specified in that article, under pain of the same penalties.

Art. 10. (This article authorizes the Chamber of Deputies to furnish the necessary subsidies, or a suffi

Gentlemen Representatives,

The government of the province of Buenos-Ayres, sees with the greatest satisfaction the opening of the seventh legislative assembly. At this moment are realized the hopes conceived on the first days of the revolution; therefore it presents itself with the fullest confidence to salute the honourable representa tives, and to give a faithful account of the affairs confided to its direction. Nevertheless, it is not possible to do so with the same minuteness as heretofore, the war having paralyzed a portion of the means of interior improvement; and for this reason, it can only speak of the most important points, as far as the actual state of the country will permit. Internal tranquillity has been the first object to which it directed its attention, satisfied that without that we should be condemned by the world, and be the derision of our enemies. Past experience has not been sufficient to convince us, that the formation of a state is subjected to the general laws of nature, in which nothing can arrive at perfection except slowly and progressively. The government, acting upon this principle, applied itself to the extinction of discord and re-establishment of the quiet of the interior, under whose shade alone can flourish the real interests by which the nation

must be hereafter united. It has the satisfaction to announce to you, that the result has corresponded with its hopes, and that reason has rarely obtained a triumph so easy and rapid in the midst of so much agitation. The government has cause to congratulate itself in the naming of the deputies who have acted in a negotiation so important. The provinces, in addition to having withdrawn their arms from civil war, have given them a more noble direction, and have named representatives to form a convention in the city of Santa Fé, which will probably have the good fortune to lay the foundation of the national happiness.

The negotiations for peace with his majesty the emperor of Brazil, still continue, and there are wellfounded hopes that the day is not far distant in which the war will terminate satisfactorily; notwithstanding which, the government, sensible that honour is the vital principle of nations, continues to support it at every sacrifice, until peace can be realized; and hopes that, should necessity require it, you will with pleasure make every necessary sacrifice. The nations. of our continent continue to give us proofs of their good wishes, and Great Britain renders us constantly the good offices of a true friend. The officers and forces by land and

sea have displayed great constancy and bravery, and have obtained considerable advantages, which recommend them to the respect and gratitude of every good citizen. When it appeared that the war was at a stand, and that the armies of the two hostile powers faced each other, without either being able to advance, an intrepid chief, with a handful of Argentines, has recovered our old possessions of the "Misiones Orientales;" his force has been there increased, and the joy evinced by the inhabitants in returning to the bosom of the republic, sufficiently proves the ab. surdity of conquest. The expedition from the north now marching to the same point, when united to the said force, will form a respectable army, the expense of which is inconsiderable, and which can easi. ly combine its operations with the main army, and will prove the symbol of the concord and enthusiasm of the provinces.

The militia of the city and the country, which had been almost dissolved, and in a state of nullity, has been reorganized, and performs important services, enabling the troops of the line to be placed on the frontiers, and wherever their attentions may be called for in the foreign war. The new line of frontier is established; this undertaking, as desirable as it is important, commenced under the most auspicious circumstances. The Indians, with whom the government continues the measures of peace and conciliation with the most happy effects, will no more commit depredations with impunity, and the immense acquisition of territory has doubled the guaranty of the public debt, so that this burden may be taken off in a short time,

if it is found necessary. But the most important is, that in this establishment we have occupied the interesting position of White Bay, (Bahia Blanca,) which is surrounded with commodious har. bours, agricultural land, and extensive woods. Its maritime coasts abound with fisheries, and some ports, enabling us to have hereafter a respectable marine, which will be the shield of the republic. The communication to Chile by land, from the same point, is short and convenient; and the navigation of the Red river (Rio Colorado) will perhaps afford a more easy exportation of the produce of some of the interior provinces. The government has ordered the land to be surveyed, and to trace out the most proper place to erect a city, to be called the "New Buenos Ayres." The importance to which it is likely to arrive gives it a claim to so glorious a title. The zeal manifested in this undertak. ing, by all those charged with the execution of it, deserves the highest praise. Through the stagnation of our foreign commerce, that of the interior has rapidly increased, especially those capitals that have been applied to agricultural purposes, labourers being abundant, from the cessation of the impress.

In the midst of all this, the establishment of public grammarschools for children in the city and country required particular attention. The government took them into consideration, and having placed at the head of them an individual who is well known for his philanthropy, it has produced the desired effect. Private colleges and houses of education have begun to be established; the govern. ment encourages, by every means,

The

this species of industry, the most useful for the country, and hopes that in a short time it will not be necessary for youths to cross the seas, seeking the treasure of science with the danger of losing those sentiments which alone can be cultivated in their native land. The ladies of the Benevolent So. ciety have shown in the present year how much the nation is indebted to them for their assiduous efforts to forward education. public schools continue in the same state that of San Miguel has improved. The works at the cathedral church, and of the high road to Ensenada, and the canal of San Fernando, are nearly completed. Many country towns have been assisted with funds to repair their churches, or to build new ones; and until, in process of time, our laws and customs be improved, a new prison for debtors is fitting up. The hospitals, especially that for women, receive important improvements; the government thus endeavouring to alleviate the sufferings of the unfortunate. The important establishment of vaccination has been augmented, and its utility has never been more felt than at this moment: whilst the neighbouring provinces are visited by the terrible scourge of the small-pox, it has scarcely been felt in this city, and the government has put in practice every means entirely to eradicate it.

The liberty of the press has of late been greatly abused. Some ill-advised persons have carried its licentiousness to such an extent as to bring discredit upon the country among foreign nations, where it is not possible to know that such productions only produce here contempt for their authors. The law

of the 8th of May has suppressed in part this licentious writing, and public opinion will by degrees banish it. The administration of justice requires a change, from which considerable advantages are expected. The government will have the honour of laying it before you for your consideration. Of all our domestic wants, none is more urgent than to fix, in a certain and positive manner, the basis of the national bank. This establishment, at present, requires the strongest guaranties; and to give them, it will be only necessary to act with prudence.

As the province of Buenos Ayres has providod exclusively the funds for the defence of the nation, it is but fair to state that when the present administration shall have been one year in office, in August next, they will have expended 1,000,000 of dollars less than they had calculated upon; after having discharged enormous outstanding debts, established the frontier, clothed, armed, and paid the army and navy, paid for the transport and armament of the contingents from the provinces, provided the expenses of foreign affairs, and nearly all those of the convention; supplied the parks of artillery and magazines, having attended at the same time to the internal expense of the province. It is true that they have suspended for the present the payment of the interest upon the loan in London, and that this dreadful measure was foreseen in making the above calculations, but it was one of those alternatives necessary to be taken, in order to avoid greater evils: the operation of issuing paper in Buenos Ayres to send gold to England would be like adding fuel to fire, and, in