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. - V government ha established tribunal by which, en Americau citizen can , racuver dobte dit froiiiBriiih subject. , Accustomed, ai theChinete are, to lim ine ry jutlloe, they could not U made to comprehend why criminal, who are ciu- fcans ofthe United Stales, should escape with impunity, in violation of treaty ob ligations: whilst lb puuibment cf Chines, who have committed any crime sgalntt our American cilizent, would be rigorously exacted. Iodeed Ilia come rjuances might be fatal lo American citi zens in China, should a flagrant crime be 1 committed by any one of ibem 'upon '(.'hinese, anil pmiisliment not follow, ac 1 cording to the requisition of the treaty. "Thi might disturb," if not destroy, our ' Iriendly relation wilb tliat Empire, and cautn interruption toourvaluable coin ' iiierc. ' , V '; Our treaties with Ibe Subiime Porte, Tripoli, Tunis, Morocco, and Muscat, al .' require the legislation of Congress In carry tbeni Into execution, though the tie-j-cessity for immediate action may not be so urgent at in regard to China. f The Secretary of Slate has submitted an estimate to defray the expenses of opening diplomatic relations will) the Papal States. The Interesting pdi tical relations in progress in those Slates, us well as our commercial interests, have "' rendered inch a measure highly expedient. Estimates hare also been 111 bin it ted of out fits of Charges d 'affairs to the republics of Ilolivla, Guatemala and Equador. The manifest importance of cultivating the most friendly relations with all the inde pendent Stales of this continent, has in . duced me to recommend appropriations necessary to the maiolanaoce of these mission. ' I recommend lo Congress that an ap propriation be made to be paid Ilia Spau ish (i uverninent , to he distributed aiming . the oltiiinants in the Amislad case. 1 en terlain the opinion that this is due to - jpain, under the treaty of 20lh of October, 1705, and moreover, from the earncs' manner io which the. claim continues l ' be urged. So long as it remains und jusled, it will be a source of irritation be tween th two countries, which may prove highly prejudicial lo the ihleieats of the Uuited Slates. Oood policy, no lets than s faithful compliance with our treaty ob ligations, require that the tnoonaideratle appropriation should be made. 1 A detailed statement of the oondilion ofthe finances will be presented in the annual report of the Secretary of the Treasury. The imports for the fiscal year ending 00 the 8O1I1 June, 1847, wer $140 645,6138, of which the amount- exported wa $8,0U, 159, leaving $138,534,430 iu the country, for dometio use. The value of the exporl fur the mine period, was $158,648,632,, of which $150,637,504 con- aisled of domestic productions, and $8, 011,158 of foreigo articles, The receipts into the Treasury amount ed to $26,346,700,37; of which there was derived from customs $23,747,864.66 from sales of public lands, $2,408,335,211' tod from incidental and miscellaneous sources; $100,570,51. The last fiscal year, during which this amount was re ceived, embraced five months under the tariff act of 1342, and seven mouths dur ing which the tariff act' of 1840 was in ; force. ' During the five months under the operation of the (arifT act of 1842, the amount received from customs was $7, 842,306,00, and during the seven months under the act of 1846, the amount re ceived was "$17,005,557,76. The net 1 revenue from customs in the year ending on the 1st of December, 1840, being the last yearof the tariff act of 1342, was $22,071,403,10; aud the nett revenue from customs, during the year eodlog December 1st, 1S47, being the first year under the operation of the tariff act of 1840, of more than $8,500,000, over that tif the last year over the tariff of 1842. The expenditure during the fiscal year ending on the 30lh of June last, are $59, 451,177 65; of which $3,552,032 37 was on account of payment of principal and interest of the public debt, including treasury notes redeemed and not funded. The expenditures, exclusive of payment of publio debt, were $55,029,005 23, It isesliinalod that the receipt into the treasury fur the fiscal year ending 30th June, 1848, including balance in the treas ury on the 1st of July last, will amount to $42,886,545 60; of which $31,000,000, it is estimated, will be derived from cua toms, $3,500,000 from the sale of the publio land. $400,000 from incidental source, including sales mad by the So licitor of the treasury, and $3,285,204, 95 from lotos already authorized by law; tvuicn, wuo ibe balance id tha treasury, on the first of July last make lb turn e timaled. .. . ; ; , .. . , . 1 he expenditures fir the tame period; if peac with Mexico shall not be con cluded, aod th army shall be increased as proposed, will amount, including th ne ceessry payments, 00 account of priocipal and Interest of the publi debt, sod treasu ry notes to $58,615,660 07. Oath first of the present month the amount of lb public debt actually incur red, including tretsury notes, wa $45, 659,660,40. ' The public debt due 'on the 4ih March, 1845, Including treasury notes, wa $V7,7S7.-9,62;aBj consequently lb addition mad t lb cnbtio bl ic tbat tlm. is $27,870,869.78. Of tb loan f t23,O0O,0fO authorized by tb act f 28th f Janoary , 1947, tb sum of $5,C00, 000 was paid out to the publio creditors, or exchanged at par for epecji, The re maining $H,0()0,000 was offered' fur spe cie 'to the highest bidder, not below par, by so advei tiiemenl issued' by llm Secre lafy of the Treasury, and published from the Oib ef February to ibe IU1I1 of April, 1847, when it wasawardod lo the several highest bidders, at a premium ranging from one-eighth of one per cent, to two per cent, above par. The premium has been paid into the treasury, and the sums warded, deposited iu speeie in the trea sury, as fast as it was ueeded by the wants of the government. To meet the expenditures for the re mainder of the present, aod for the next fiscal year, ending on the 30th of June, 1840, a further loan, iu aid of (lie ord ina ry revenue, will be necessary, Retaining a sufficient surplus in the Ircasucy, the luan required for the remainder of the pre-enl fiscal year will be above $18,500, 000. : If the duty on tea and Coffee be im posed, and Ibe graduation of the public lauds shall be made at an early period of your session, as recommended, the loan for the fiscal year may be reduced to $17, 000,000. This may be further reduced, whatever amount of expenditures can be saved by the military contributions col lected in Mexico, The most vigorous measure Tor (lie augmentation of these contributions have been directed: and a very considerable turn is expected from I list source. I Is amount Cannot, however, he calculated with any . certainty. It is recommended that the loans (0 bo made be authorized upon the same term!, which was authorized under the provisions of the act ofthe C8lh of January, 1847. Should thorwar with Mexico be continued till the 30tli of June, 1840 it is estimated that a further loan of $20,500,000 will be required, for the fiscal year ending on that day, in enso no duty be imposed on tea and coffee, and the public lamia bo not reduced and graduated in price, and no military contribution shall bo collected in Mexico. If the duty oil tea and coffee be imposed, and the lands reduced and graduated, in price, as proposed, the loan may be reduced to $17,000,000; and will be subject to bo still further reduced by the amount of the military contributions which may be collected in Mexico. It is not pro posed, however, to oak Congress for authority to negotiate the loans for the next fiscul yoar; as it is Imped that the loans, asked for the remainder of tha present fiscul years, aided by military contributions, which may be col lected in Mexico, may he sufficient. If, con trary to my expectations, there shull be a ne cessity for it, the fact will be communiciited to Congress in time, for their action, during their present session. In no event will a sum exceeding $60,000,000 of this amount be needed before the meeting of the session of Congress of 1P48. The net of July 184G, reducing the duties on imports, hns been in force einco the first of December last; and I am gratified to state that all the beneficial effects which were an ticipated from its operations have been fully realized. The public revenue derived from customs during the year ending 1st of De comber 1817, exceeds by more than $8,000, 0' 0, the amount received in the preceding year, under the act of 1842, and which was superceded dy it. Its effect are visible in the great and almost unexampled prosperity which prevails in almost every branch of bus iness. While the repeal ofthe prohibitory and re strictive duties of the act of 1812, and the substitution, in their place, of reasonable rev enue rates, levied 011 articles imported, ac cording to their actual value, has increased the revenue, and augmented our foreign trade, all tho great interests of tha country have been advanced and promoted. The great and important interests of agri culture, which had been Dot only too much neglected, but actually taxed under the pro tective policy for the benefit of other inter ests, have been relieved ofthe burdens which that policy imposed on them: and onr farmers and planters, under a more just and liberal commercial policy, are finding new and profit able markets aboard for their augmented pro ducts. Our commerce is rapidly increasing, and is extending more widely the circle of interna tional exchanges. Great as has been the in crease of our imports during the past year, our exports of domestic products sold in foreign markets have been etill greater- Our navigation interest is ominenlly pros perous. The number of vessels built in the United State has been greater than during any preceding period of equal length. Large profits have been derived by those who have constructed as well as by those who have nav igated them. Should the ratio of increase in the number of our merchant vessels be pro gressive, and be as great for the future as dur ing the past year, th time is not distant when our tonnage and commercial marine will be larger than that of any other nation in the world. Whilst the interests of agriculture, of com merce, and of navigation have been enlarged and invigorated, it is highly gratifying to ob serve that our manufactures are also in a pros perous condition, None of the ruinous effects upon this interests, which were apprehended by some, as the result of the operation of ibe revenue system established by the act of 1846, have been experienced. On the contrary, the number of manufactories, and the amount of capital invested in (hem, is steadily and rapid ly increasing, affording gratifying proof that American enterprise and skill employed in in this branch of domestic industry, with no other advantages than those fairly and inci dentally accruing trom a just system of reve nue duties, are abundantly able to meet suc cessfully all competition from abroad, and till uenve lair ana remunerating profits. ."':, While capital invested in manufactures is yielding adequate Vnd "fair profits under the new system, the "wages of labor, whether em ployed in manufactures, agriculture, com merce, or navigation, have been augmented. The toiling millions, whose daily labor furn ishes the supply of food and raiment, and all the necessaries and comforts' of life, are re ceiving higher wages, end, more steady and permanent employment than in any other country, or at any previous period of our own history. , So successful have been all branches of our industry, that a foreign war, which generally diminishes the resources' of a nation, has in no essential degree retarded our onward pro gress, or checked our general prosperity. With such gratifying evidences of prosper ity, and of the successful operation of the revenue act of 1846, every connideration of public policy recommends that it shall re main unchanged. - It is hoped that the system of impost duties which it established maybe regarded as the permanent policy ofthe coun try, and that the great interests affected by it may not again be subject to be injuriously dis turbed, as they have heretofore been, by fre quent and sometimes sudden changes. For the purpose of increasing the revenue, and without changing or modifying the rates imposed by the act of 1846 on the dutiable articles embraced by its provisions, I again recommend "to your favorable consideration the expediency of levying a revenue duty on tea and coffee. The policy which exempted these articles from duty during peace, and when the revenue to be derived from them was not needed, ceases to exist when the country is engaged in war, and requires tho use of all its available resources. It is a tax which would be so generally diffused among the people, that it would be felt oppressively by none, and be complained of by none. It is believed thut there are not, in the list of imported articles, any which are more proper ly the subject of war duties than tea and cof fee. - ' It is estimated that three millions of dol lars would be derived annually by a moderate, duty imposed on these articles. Should Congress avail itself of this addi tional source of revenue, not only would the amount of the public loan rendered necessary by the war with Mexico be diminished to that extent, but the public credit, and the public confidence in the ability and determination of the government to meet all its engagements promptly, would be more firmly established and the reduced amount of the loan which it may be necessary to negotiate could probably be obtained at cheapor rates. ,. Congress if, therefore, called upon to de termine whether it is wiser to impose'tho war duties recommeded, or, by omitting to do so, increase the public debt annually three mil lions 0 dollars so long as loan shall be re quired to prosecute the war, and afterwards provide, in some other form, to pay tho semi annual interest upon it, and ultimately to ex tinguish the principal.' If, in addition to these duties, Congress should gradualfljnd reduce the price of such of the pub)icifcs eat perience has proved will not command the price placed upon them by tho government, an additional annual income to the treasury of between half a million and a million of dol lars, it is estimated, would be derived from this source. Should both ' measures receive the sanction of Congress, the annual amount of public debt necessary to be contracted during the continuance of the war would be reduced near four millions of dollars. Tho duties recommended to bo levied on tea and coffee, it is proposed shall be limited in their duration to the end of the war, and until the public debt rendered necessary to be con tracted by it shall be discharged. The amount of the public debt to be contracted should be limited lo tho lowest proticable sum, and should ho extinguished as early after tho con clusion of the war as the means of the treas ury will permit. With this view, it U recommended that, as soon as tho war shall be over, all the surplus in the treasury, not needed for other indispen sable objects, shall constitute a sinking fund, and be applied to the purchase of the funded debt, and that authority be conferred by law for that purpose. .. . The act of the sixth of August, 1846, 'to establish a warehousing system,' has been in operation more than a year, and has proved to be an important auxiliary to the tariff act of 1846, in augmenting the revenue, and extending the commerce of tho country. Whilst it has tended to enlarge commerce, it has been beneficial to our manufactures, by diminishing forced sales at auction of foreign goods at low prices, to raiso the duties to be advanced on them, and by checking fluctua tions in the market. The system, although sanctioned by the experience of oilier coun tries, was entirely new in the United States, and is susceptible of improvement in some of its provisions. The Secretary of the Treas ury, upon whom were devolved large discre tionary powers in carrying this measure into effect, has collected, and is now collating, the practical results of the system in other coun trie, where it has long been established, and will report at an early period of your session such further regulations suggested by the investigation as may render it still more ef fective and beneficial. By the act to 'provide for the better organ ization of the treasury, and for the collection, safe keeping, and disbursement of the public revenue,' all banks were discontinued as fia cal agents of the government, and the paper currency issued by them was no longer per mined to be received in payment of public dues. Th constitutional treasury created by this act went into operation on the first of January last. Under the system established by it, the public money bave been collected, safely kept, and disbursed by th direct agency of officer of the government in gold and silver and transfers of large amounts have been made from points of collection to points of disbursement, without loss to the treasury, or injury or inconvenience to the trade of the country:"; '; i , ; ',', ;-; i-V- ' , Whilst the fiscal operations of the gov. eminent have been conducted with regu larity and ease, under Ibis system, it has had a salutary effect in checking and pre venting aft undue inflation of ilia paper currency issued by the banks which exist understate charters. Requiring, as it does, all dues to- the government to be paid in gold and silver, it effect is lo re strain excessive issues of baok paper by the banks dieproportioned to the specie in their vaults, for the reason that they are at all limes liable to ba called on by the holders of their notes for their redemp tion, io order to obtain specie for the pa) ment of duties and other publio due. The banks, therefore, must keep (heir business within prudent limits, and be al ways in a condition to meet such calls, or run the hazard of being compelled to aus pend specie payments, and be thereby dis credited. The amount of specie import ed into the United States during the last GsohI year was twenty-four million ooe hundred and twenty-one ' thousand two hundred and eighty-nine dollars; of which there was retained in the country twenty two million two hundred and seventy six thousand ooe hundred and seventy dollars, Had the former financial system prevail. ed, and the public moneys been placed on aeposite in banks, nearly the whole of this amount would have gone into their vaults, not to be thrown into circulation by them, but to be withheld from the bauds of the poeple as a currency, and made the basis of new and enormous issue of bank pa per. A larger proportion of the specie imported has been paid into the treasury fur public dues; and after having been, to a great extent, recoined at the mini, has been paid out lo the publio creditors, and gone into circulation as a currency among tho people. The amount of gold and sil ver coin now in circulation in tho country is larger than at any former period. The financial system established by the constitutional treasury has been, thus far, eminently successful in its ope rat ions; and I recommend and adherence to all its es sential provisions, an especially to that vital provision which wholly seperates the government from ail connexion with banks, and excludes bank paper from all revenue receipts. In some of its details, not involving its general principles, the system isdefective. and will require modification. These defects, and such amendments as are deemed important, were set forth in the Inst annual report of the Secretary ofthe Treasury. These amendments are again recommended to the early and favorable consideration of Congress. During the past year, the coinnge al the mint and its branches has exceeded twen ty millions of dollars. This bat consisted chiefly 'in converting the coin of foreign countries into American coin. The largest amount offoreign coin im ported has been received at New Tork; and if a branch mint were established at that city, all the foreign coin received at thai port could at once ba converted into our own coin, without the expense, risk, and delay of transporting it to Ihe mint for that purpose, and Ihe amount recoin ed would be much larger. Experiences has proved that foreign coin, and especially foreign gold coin, will not-circulate extensively as a cur rency among the people. The important measure of extending our specie circula tion, both of gold and silver, and of dif fusing it among the people, can only be effectedby converting such foreign coin into American coin. Irepeat Ihe recom mendation containedin , my last annual message for Ihe eitahlisbment of a branch the mint of theUnited State at the city of New York. All the publio lands which had been surveyed and were ready for market have been proclaimed for sale during the past year. The quantity offered and to be of fered for sale, under proclamations issued since the first of January last, amounts to nine million on hundred and thirty-eight thousand five hundred and thirty-one a ere. The prosperity of the western Stales and Territories in which these lands lie will be advanced by theirspeedy sale. By withholding them form market, their growth and increase of population would be retarded, while thousands of our cnterprising'and meritorious frontier pop ulation would be deprived of the oppor tunity of securing feeholds for themselves and their families. Dul in addition to the geseral considerations which rendered the early sale of these land proper, it is a leading object at this time to derive as large sum a possible from this source, and thus diminish, by that amount, the public loan rendered necessary by the existence of a foreign war. It is estimated that not less than ten million of acres of the public lands will ba surveyed aud be in a condition to ba proclamed for sal during tha year 1848. In my last annual message I presented the reason which, in my judgment, rend ered it proper lo gradual and reduce th price of such of th publio land as have remained untold for long period af ter they bid been offrd for tal at pub lio auction. . ' ,' .- Many million of acre of publio Sand lying wiiliin lb limit of several of th waster Slates ba hen offered in th market, aod been subject to ala at pri vat entry for more (ban twenty year, 'and large quantities for more than thirty years; at Ihe lowest pric prescribed by ke existing laws,' aud, it has been found that' they will out coininaod that price. They must remain unsold and nncultiva ted for . an indefinite period,' unlea the price demanded for them by the govern ment shall be reduced. No satisfactory reason is perceived why they, shoul'd be longer held at rales above their real val ue. At the present! period an additional reason exist for adopting the measure re commended. When the country i en gaged iu a foreign war, and we must 'ne cessarily retort to loans, it would seem to belli dictate of wisdom that we should avail ourselves of all our resources, and thus limit the amount of the public in debtedness to the lowest possible sum I recommend that "the existing laws on J me sunjeci 01 pre-empnon riguis oe amended and modified so a to operate prospectively, and to embrace all who may settle upon the public lands and make improvements upon them before they are surveyed, ' as well as afterwards,' in all cases where such settlements may be made after the Indian title shall have been extinguished. If the right of pre emption be ikus ex tended, it will embrace a large and mer itorious class of onr citizens. It will in crease the number of small freeholders upon our borders, who will be enabled thereby to educate their children , and otherwise improve their condition, while they will be found at all times, as they have ever proved themselves to be in the hour of danger to their country, among our hardiest and best volunteer soldiers, ever ready to tender tbeir services in case of emergency; and among the last to leave the field as long as an enemy remains to be encountered. Such a policy will also impress these patriotic pioneer emi grants with deeper feelings of gratitude for the parental care of their government, when they find their dearest interests se cured to them by the permanent laws of the land, and th it they are no longer in danger of losing their homes and hard earned improvements by being brought into competition with a more wealthy class of purchasers at the land sales. The attention of Congress was invited, at their last aod the preceding session, to the importance of establishing a Territo rial government over our possessions in Oregon; and it is lo be regretted that there was no legislation on the subject. Our citizens who inhabit that distant re gion of country are still left without the protection of our taws, or any - regularly organized government. Before 1 lie ques lion of limits and boundaries of lie terri tory of Oregon was definitely settled, from the necessity of their condition, the inhabitants had established a temporart government of their own. Besides the want of legal authority for continuing such a government, it is wholly inade, qtiate to protect them in (heir rights of person and property, or to seem e to them ihe enjoyment of the privilege of other citizens, to which they are entitled under the constitution of the United States. They should have the right of suffrage, be represented in a Territorial legisla ture, and by delegate in Congress; and possess all the rights and privileges which citizens of other portions ofthe Territo ries of the United States have heretofore enjoved, or may now enjoy. Our judicial system, revenue laws, laws regulating trade and intercourse with the Indian tribes, and the protection of onr laws generally, should be extended over them. , . - In addition to the inhabitant in that territory who had previously emigrated lo it, large numbers of our citizens have followed them during Ihe present year; and it is not doubted that during the next and subsequent year' tbeir number will be greatly increased. Congress, af its last session, established post-route leading to Oregon, and be tweeo different points within that lerri tory, and authorized the establishment of poal offices at "Astoria and such other places en the coast ofthe Picifio, within the territory of the United State, a the public interest may require." - Post offi ces have accordingly been established, deputy postmaster appointed, and pro vision made lor the transportation of the mails. The preservation of peace with th In dian tribes residing west of the Rocky mountains will render il proper tbat au thority should be given by law for the ap pomtment of an adequate number of In dian agent lo reaid ainoog them. . 1 recommend that a surveyor general' office b established io that territory, and that lb publio land be surveyed and brought into market at an early period. ,1 recommend, also, that grant, upon liberal term, of limited quanlitie of the public laods be made to all citisen of th United Stale who bave emigrated, or may hereafter within a prescribed period emigrat, to Oregon, and settle upon them- Thet bardy and adventurous cil izens, wbo bav encountered tb dangers and privation of a long aod toilsome jour ney, and btv at length found an abiding plac for tbemslvs aod -their families up on th utmost verge of our western limits, should b secured is th home which I hey bave improved by tkir Ubort , I refer yon Io tb accompanying re port of lb Secretary of War for a detailed account of th operation of th various branche of th public service coaoected with tb department bav been uoutually onerous and responsible during the patt year, and have been discharged with abili ty and ncoe;,Vv--.-,-'.;:. Pacific relations continue to exist with the various Indian tribes, and moet of them man ifest a strong friendship for the United States. Some depredations were committed during the past year upon our train transporting supplies for the army, on the road between the western border of Missouri and Santa Fe. These depredations, which are snppoeed to have been committed by band from the re gion of New Mexico, have been arrested by the presence of a military force,' ordered eet for that purpose. Some outrage have bee perpetrated by a portion of the northwestern bands upon the weaker and comparatively defenceless neighboring tribes. Prompt meas ures were taken to prevent such occurrences in future. ' ' ' ' ' Between one and two thousand Indians, belonging to several tribes, have been re moved during the year from the east of the Missippi to the country alloted to them west of that river, as their permanent home; and arrangements have been made for others to follow.- ' '.;" 1 :;" " .-'-''-" : ' Since the treaty of 1846 with the Chero kees, the feuds among them appear to have subsided, and they have become more united and contented than they have been for many years past. The commissioners, appointed in pursuance of the act of June 27th, 1846, to settle claims arising under the treaty of 1835 36 with that tribe, bave executed their duties; and after a patient investigation, and a full and fair examination of all the cases brought before them, closed their labors in the month of July last. This ia the fourth board of commissioners which has been or ganized under this treaty. Ample opportuni ty has been afforded to all those interested to bring forward their claims. No doubt is en tertained that impartial justice has been done by the late board, and that all valid claims embraced by tho treaty have been considered and allowed. This result, and the final set tlement to be made with this tribe, under tho treaty of 1 840, which will be completed and laid before you during your session, will ad just all questions of controversy between them and the United States, and produce a state of relations with them simple, well-defined, and satisfactory. Under this discretionary authority con ferred by the act of 3d March last, the -annuities due to various tribes have been puid during the present year, to the heads uf families, instead ot to the chiefs, or to such persons as they might designate, ex cept as by the law previously existing, , This mode of payment has given general satisfaction to the great body of the In." dians justice has been done lo tbeni and they are grateful to the government for it. A few chiefs and interested peisons may object to this mode of payment, but it is believed to be ihe only mode of prevent- illO- ll-nilil Hnil itnnriKII Kin frtim haini n.nA. 0 - - - , " r , tised upon the great body of the common ' Indians, constituting a majority of all tb ' ' tribes. - '' '"'' . ', '' - It is gratifying (o perceive that a ntim- ' ' ber of the tutors have recently manifested an interest iu the establishment of schools among ihem, and are making rapid ad vances in agriculture; some of them pro- ducing a sufficient ' quantity of food for their support , and a surplus to dispose of ' to their neighbors. " The comforts bv which those who have received even a very limited education and have engaged in agriculture, aro surrounded, tend gradu- ' ally to draw off tha less civilized brethren from the precarious means of subsistence, by the chase, to habits of labor and civil- ' ization, - ' ' ' The accompanying report of the Secre tary of the Navy present a alisfactory account of the service during the last year. Our commerce ha been punned with in-' ' creased activity, and with safety and suc cess in every quarter of the globe " under lha protection of our fiagi whick the Nary ' has caused to be respected itfnhe most ' distant aeas. ' ' ' ' ' . ' In the Gulf of Mexico and the Pacific, the oflicei and men of our squadron bave displayed distinguished gallantry, and have performed valuable services. '"' In the early stage of the war with Mex- ' ico, her ports on both coasts were block- ' ' aded, and more recently many of them -have been captured and held by tbe Navy." J Whear acting 10 co-operatloo with the land'forces, the-Naval officer and men- ' bave performed gallant and distinguished ' service on land as well a on water, and 1 deserve the high commendation of th ' country. - ; . - - -. While other maratime power ar ad- ' ding to their navie large number of war steainars, it is a wise policy on our part, to make similar additions lo our navy. The four war steamers authorized by lb ' 3d of May, 1637, are in course ofcoostiuc- '' tion. " '.;-! ' " ;'"-' -w';' '' - ,: In addition to tbe four war alcanaer"- authorized by this act, the Secretary lias, ''''' in puisuance of its provision, entered in- " ' to contract for the foiir'sletmert to ba ' '' employed in Ihe transportation of the ' United Slate Mail front New York to-'"" New Orleans, touching at Savanak and':' ' llavanna, anj from Havacna t Chagres; for three steamer to be employed lit ' - ' like manner from Panama to Oregon, o ' ' ; a lo connect with the mail to Cbsgre acros the Iitl.mm. and fur five steamer ' 10- be employed in like manner I 'Liver ' pool. : These steamer will be th proper-' ly of ceotractsrs, but ia b built' oodar ' "''" tb mperinteudants aod direction f CJ oaval constructor, in the employ of th '' oavy department, and to b so constructed -l '' ' 1 a to reader them convertible at th least possible expense into war laineiof the ' J , -