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this was the iame ' offer which had been made by the British, and rejected by the A- merican government in the negotiation of 1820. This proposition was nroDerlv reject ed by the American plenipotentiary on tho day it was submitted. This was the only proposition of compromise offered by the British plenipotentiary. The proposition on the part of Great Britain having boon rejected, the British plenipotentiary requested that a proposal should be made by the United States for " an equitable adjustment of the question." When I came into omce, I found this 10 be the stato of the negotiation. Though enter taining the settled conviction, that th.d British pretensions of title could not be maintained to any portion of the Oregon territory upon any principle of public iaw recognised by nations, yet, in deference to what had been done by my predecessors, and especially in consideration Vnat oroDositionsof comDromise had been thrice made bv two preceding ad ministrations, to adjust the Question on the parallel of forty-nine degrees, and in two of tbem yielding to Ureal Britain the free navi gation of the Columbia, and that the pending -negotiation had been commenced on the basis of compromise, I deemed it to be my duty not abruptly to break off. In consider ation, too, that under the conventions of 1818 and 1827, the citizens and subjects of the two Powers held a joint occupancy of the country, I was induced to make another effort to settle this lone pending con troversy in the spirit of moderation which had given birth to the renewed discus won. A proposition was accordingly made, which was rejected by the British pkni poienuary, wno witiiout submitting any oilier proposition, sultered the negotiation on his part to drop, expressing his trust that tho United States would offer what he saw fit to call "some further proposal for the setl le nient ol the Uregon question, more consistent with fairness and equity, and with the rea sonable expectations of the British govern ment." The proposition thus offered and rejected, repealed the offer of tho parallel of lorty-nine degrees ot north latitude, which had been made by two preceding adminis trations, but without proposing to surrender to Great Britain, as they had done, tho free navigation of the Columbia rivor. The right of any foreign power to the free navigation of any of our rivers, through the heart of our country, was one which I was unwilling to concede. It also embraced a provision to make free to Great Britain any part of ports on the cap of Quadra and Vancouver's island, south of this parallel. Had this been a new question, coming under discussion for the first time, this proposition would not have keen made. The extraordinary and wholly inadmissible demands ot the British govern ment, ana the rejection ot the proposition made in deterence alone to what had been dine by my predecessors, and the implied obligation which their acts seemed to impose, afford satistactory evidence that no compro mise, which the United Slates ought to accept, can be effected. With this conviction, the proposition of compromise which had been made and rejected, was, by my direction, subsequently withdrawn, and our titlo to the ...l.i. r . r.- . i . . wnoi urcguu territory asserted, and, as is believed, maintained by irrefragable facts and arguments. . i no civilized world win see in these pro ceedings a spirit ot liberal concession on the part of the United States; and this govern ment will be relieved from all responsibility which may follow the failuro to settle the controversy. All attempts at compromising having failed, it becomes the duty of Congress to consider what measures it may be proper to adopt for the security and protection of our citizens now inhabiting, or whe may hereafter inhabit Oregon, and for the maintenance of our just title to the territory. In adopting measures for this purpose, care should be taken that nothing be done to violate the stipulations of the conventien ot 185J7, which is still in force. The faith of treaties, in their letter and spirit, has ever been, and, I trust, will over be, scrupulously observed by tho Uuited States. Under that convention, a year's notice is required to be given by either party to the other before the joint occupancy shall terminate, and before either can rightfully assert of exercise exclusive jurisdiction over ny portion of the territory. This notice it would, in my judgment, be propor to give; and I recommend that provision be made by law for giving it accordingly, and terminating in this manner the convention of the sixth of August, 1827. 1 It will become propor for Congress to de termine what legislation they can, in the mean time, adopt without violating this con vention. Beyond all question, the protection of our laws and our jurisdiction, civil and Criminal, ought to be immediately extended over our citizens in Oregon. They have had just cause to complain of our long neglect in this particular, and have, in consequence, been compelled for their own security and protection, to establish a provisional govern ment for themselves. Strong in (heir allegi ance and ardenl in their attachment to the United States, they have been thus cast upon their own resources. They are anxious that our laws should be extended over them, and J recommend that this bo done by Congress with as little delay as possible, in the full ex tent to which the British Parliament have proceeded in regard to British subjects in jhdt (erritory, by tlierr act of July the second, 1821, " for regulating lh? fur-trade, and estab lishing a criminal and civil jurisdiction within certain parts of North America." By this act Great Britain extended her laws a.?d jurisdic tion, civil and criminal, over her subjects, engaged jn thB fur-iradq in that territo.'"- By i), the courts of the province of Upper Canada were empowered to take cognizance of causes civil and criminal, Justfcei of the peace and other judicial officers were author ized to be appointed in Oregon, with power o execute all piocess issuing from tho courts of that province, and to ' sit and hold courts pf record for the trial of criminal' offences ajH misdemeanors," not made the tubject of capital punishment, and also of civil cases, where the cause of action shall not " excee-j in value the amount or sum of two hundred pou ads." Subsequent to the dMe of t.'g act 0f Par liament, a grant was made from the British crown" to the Hudson's Bay Company, of iuo elusive iraaq with the Indian tribes in the Oregon teritorv. suhier.t to a reservation that U shall, not opeiate to the exclusion " of mo sunsets ot any foreign States who, under or by force of any convention for the time heing, between us and such foreign States respectively, may be entitled to, and shall be engaged in, the said trade." It is much to be regretted, that while under this act, British subjects have enjoyed the protection of British lawsjudicialtribunals throughout the whole of Oregon, American citizens, in the same territory, have enjoyed no such protection from their government. At the same time, the result illustrates the character of our oeonle and their institutions. In spite of this neglect, they have multiplied, and their number is rapidly increasing in that territory. They have made no appeal to arms, but have peacefully fortified them selves in their new homes, by the adoption of republican institutions for themselves; furnishing another example of the truth that self-government is inherent in the American breast, and must prevail. It is due to them that they should be embraced and protected by our laws. It is deemed important that our laws, regu lating trade and intercourse with the Indian tribes east of the Rocky mountains should be extended to such tribes as dwell beyond them. The increasing emigration to Oregon, and the care and protection which is due from the government to its citizens in that distant region, make it our duty, as it is our interest, to cultivate amicable relations with the Indian tribes of that territory. For this purpose, I recommend that provision be made for estab lishing an Indian agency, and such sub-agencies as may be deemed necessary, beyond the Rocky mountains. For the protection of emigrants whilst on their way to Oregon, against the attacks of the Indian tribes occupying the country through which they pass, I recommend that suitable number of stockades and block house forts be erected along the usual route between our frontier settlements on the Mis souri and the Rocky mountains; and that an adequate force of mounted riflemen be raised to guard and protect them on their journey. The immediate adoption of these recommen dations by Congress will not violate tho pro visions of the existing treaty. It will bo doing nothing more for American citizens than British laws have long since done for British subjects in the same territory. It requires several months to perform the voyage by sea from the Atlantic Stales to Oregon: and although we have a largo num ber of whale ships in the Pacific, hut few of them afford an opportunity of interchanging intelligence, without great delay, between our settlements in that distant region and tho United States. An overland mail is be lieved to be entirely practicable, and tho im portance of establishing such a mail, at least once a month, is submitted to the favorable consideration of Congress. It is submitted to the wisdom of Congress to determine whether, at their present session, and until after the expiration of the year's notice, any other measures may be adopted consistently with the convention of 1627, for the security of our rights and the government and protection of our citizens in Oregon. That it will ultimately be wise and proper to make liberal grants of land to the patriotic pioneers, who, amidst privations and dangers, lead the way through savage tribes inhabiting the vast wilderness intervening between our frontier settlements and Oregon, and who cultivate and are ever ready to defend the soil, I am fully satisfied. To doubt whether they will obtain such granls as soon as the convention between the United States and Great Britain shall have ceased to exist, would be to doubt the justice of Congress; but, pending tho year's notice, it is worthy of consideration whether a stipulation to this effect may be made, consistently with the spirit of that convention. The recommendations which I have made, as to the best manner of securing our rights in Oregon, are submitted to Congress with great deference. Should they in their wis dom, devise any other mode better calculated to accomplish the same object, it shall meet with my hearty concurrence. At the end of the years notice, should Congress think it proper to make provision for giving that notice, we shall have reached a period when the national rights in Oregon must either be abandoned or firmly maintain ed. That they cannot be abandoned without a sacrifice of both national honor and interest, is too clear to admit of doubt. Oregon is a part of the North American continent, to which, it is confidently affirmed, the tale ot the United States is the best now existence. For the grounds on which that titlo rests, I refer you to the correspond ence of the late and present Secretary of Stato with the British plenipotentiary during the negotiation. The British proposition of compromise, which would make the Colum bia the line south of forty-nine degrees, with a trifling addition of detached territory to the United Slates, north ot that river, and would leave on the British side two-thirds of the whole Oregon territory, including the free navigation of the Columbia and all the val uable harbors on the Pacific, can never, for moment, be cntortamed by the United States, without an abandonment of their just and clear territorial rights, their own self respect, and the national ' honor. Fo the information of Congress, I communicate herewith tho correspondence which took plac" between the two governments during the late- negotiation. The rapid extension of our settlements over our territories heretofore unoccupied; the addition of new Slates to our confederacy; the expansion of free principles, and our ris ing greatnen as a nation, are attracting the Attention of the Powers of Europe; and late ly the doctrine has been broached in some of them, of a " balance of power ' on tbia con tinent, to check our advancement. The United States, sincerely desirous of preserv ing relations of good understanding with all nations, cannot in silence permit any Euro pean interference on the North American contmont; and should any such inlerlerence be attempted, will be ready to resist it at any and all hazards. It is well known to the American people and to all nations, that this government has never interfered with the relations subsisting between other governments. We have never made ourselves parties to their wars or their alliances: we have not sought their territories by conquest; we nave not iningicu wuu pur ties in their domestic struggles: and believing our own form of government to bo the best, we have never attempted to propagate it by intrigues, by diplomacy, or by force. We may claim on this continent a like exemption J . mi . r Irom European interterence. i ne nations oi America are equally sovereign and independ ent with those of Europe. They possess the same rights, independent of all foreign inter position, to make war, to conclude peace, and to regulate their internal affairs. The peoplo of the United States cannot, therefore, view with indiflerence attempts ot European powers to interfere with the independent ac tion of the nations on this continent. The American system of government is entirely different from that of Europe. Jealousy among the different sovereigns of Europe, lest any one of them might become too powerful for the rest, has caused them an xiously to desire the establishment ot what they term the " balance of power." It can not bo permitted to have any application on the North American continent, and especially to the United States. We must ever main tain the principle, that the people of this con tinent alone have the right to decide their own destiny. Should any portion of them, constituting an independent state, propose to unite themselves wilh our confederacy, this will be a question for them and us to deter mine, without any foreign interposition. We can never consent that European Powers shall interfere to prevent such a union, because it might disturb the "balance of power" which they may desiro to maintain upon this conti nent. Near a quarter of a century ago, the principle was distinctly announced to the world, in the annual message of one of my predecessors, that " the American continents, by the free and independent condition which they have assumed and maintain, arc hence forth not to be considered as subjects for future colonization by any European power." 1 his principle will apply with greatly incrcas- ed force, should any European power attempt to establish any new colony in North Amer ica. In tho existing circumstances of the world, the present is deemed a proper occas ion to reiterate and reaffirm the principal avowed by Mr. Monroe, and to state my cor dial concurrence in its wisdom and sound policy. Tho reassertion of this principle, especially in reference to North America, is at this day but the promulgation of a policy which no European power should cherish the disposition to resist. Existing rights of every European nation should be respected; but it is duo alike to our safety and our interests, that the efficient protection of our laws should be extended over our whole territorial limits, and that it should be distinctly announced to the world as our setilcd policy, that no future European colony or dominion shall, with our consent, be planted or established on any part of the North American continent. A question has recently arisen under the tenth article of the subsisting treaty between the United States and Prussia. By this ar ticle, the consuls of the two countries have the right to sit as judges and arbitrators " in such differences as may arise between the captains and crews of the vessels belonging to tho nation whose interests are committed to their charge without the interference of the local authorities, unless tho conduct of the crews or of the captain should disturb the order or tranquility of the country, or the said consuls should require their- assistance to cause their decisions to be carried into effect or supported." The Prussian consul at New Bedford, in June, 1844, applied to Mr. Justice Story to carry into effect a decision made by him be tween the captain and crew of the Prussian ship Borussia; but the request was refused on the ground that, without previous legisla tion by Congress, the judiciary did not possess the power to give effect to this article of the treaty. The Prussian government, through their minister here, have complained of this violation of (he treaty, and have asked the government of the United States to adopt the necessary measures to prevent similar viola tions hereafter. Good faith to Prussia, as well as to other nations with whom we have similar treaty stipulations, requires, that these should be faithfully observed. I have deemed it proper, therefore, to lay the subject be fore Congress, and recommend such legisla tion as may be necessary to give effect to these treaty obligations. By virtue of an arrangement made between the Spanish government and that of the Uni ted States, in December, 1831, American vessels, since the twenty-ninth of April, 1832, have been admitted to entry in the ports of Spain, including (hose of the Balear ic and Canary Islands, on payment of the same tonnage duty of five cents per ton, as though they had been Spanish vessels; and this, whether our vessels arrive in Spain di rectly lrom the United fetates, or indirectly from any other country. When Congress, by the act of the thirteenth of Julv, 1832, gave effect to this arrangement between the two governments, they confined the reduc tion of tonnage duty merely to Spanish ves sels "coming from a port in Spain," leaving the tor me r discriminating duty to remain a gainst such vessels coming from a port in any other country. It is manifestly unjust that, whilst American vessels, arriving in the ports of Spain from other countries, pay no more duty than Spanish vessels, Spanish vessels arriving in the porta of the United States from other countries should be subjected to heavy discriminating tonnage duties. This is neither equality nor reciprocity, and is in violation of the arrangement concluded in December, 1831, between the two coun tries. Tho Spanish government have made repeated and earnest remonsLances against this inequality, and the favorable attention of Congress has been several times invoked to the subject by my predecessors. I recom mend, as an act of justice to Spain, that this inequality be removed by Congress, and that the discriminating duties which have been levied under the act of the thirteenth of July, 1632, on Spanish vessels coming to the Unit ed States from any other foieign country, be refunded. This recommendation docs not embrace Spanish vessels arriving in the Unit ed States from Cuba and Porto Rico, which will still remain subject to the provision of the act of June thirteenth, 1834, concerning tonnage-duty on such vessels. By the act of the fourteenth of July, 1832, coffee was exempted from duty altogether. This exemption was universal, without refer ence to the country where it was produced, or the national character of the vessel in which it was imported. By the tariff act of the thirtieth of August, 1842, this exemp tion from duty was restricted to coffee im ported in American vessels from the placo of its production; whilst coffee imported under all other circumstances was subjected to a duty of twenty percent, ad valorem. Under this act, and our existing treaty with the King of the Netherlands, Java coffee impor ted from the European ports of that kingdom into the Uuited States, whether in Dutch or American vessels, now pays this rato of du ty. The government of the Netherlands complains that such a descriminating duty should have been imposed on coffee, the pro duction of one of its colonies, and which is chiefly brought from Java to the ports of that kingdom, and exported from thence to for eign countries. Our trade with the Nether lands is highly beneficial to boh countries, and our relations with them have ever been of the most friendly character. Under all the circumstances of the case, I recommend that this discrimination should be abolished, and that the coffee of Java imported from the Netherlands bo placed upon the same footing with that imported directly from Brazil and other countries where it is produced. Under tho eighth section of the tariff act of the thirtieth of August, 1842, a duty of fifteen cents per gallon was imposed on Port wine in casks; while, on the red wines of several other countries, when imported in casks, a duty of only six cents per gallon was imposed. This discrimination, so far as regarded the Port wine of Portugal, was deemed a violation of our treaty with that Power, which provides, that "No higher or other duties shall be imposed on the impor tation into the United States of America of any article the growth, produce, or manufac ture of the kingdom and possessions of Portu gal, than such as are or shall be payable on the like article being the growth, produce, or manufacture ot any other foreign coun try." Accordingly, to give effect to the treaty, as well as to the intention of Con gress, expressed in a proviso to the tariff act itself, that nothing therein contained should be so construed as to interfere with subsisting treaties with foreign nations, a treasury circular was issued on the sixteenth of July, 1844, which, among other things, declared the duty on the Port wine of Porta gal, in casks, under tho existing hws and treaty, to be six cents per gallon, and direc ted that the excess of duties which had been collected on such wine should be refunded. By virtue of another clause in the same sec tion of the act, it is provided that all imita tions of Port, or any other wines, "shall be subject to .ho duty provided for the genuine article." Imitatations of Port wine, the pro duction of I1 ranee, are imported to some extent into the United States; aud the gov ernment of that country now claims that, un der a correct construction of the act, these imitations ought not to pay a higher duty than .that imposed upon the original Port wine of Portugal. It appears to me to be unequal and unjust, that French imitations of Port wine should be subjected to a duty of fifteen cents, while the more valuable article from Portugal should pay a duty of six cents only per gallon. 1 thorefote recommend to Con gress such legislation as may bo necessary to correct the inequality. The late President, in his annual message of December last recommended an appropri ation to satisfy the claims of that Texan Government against the United States, of which had been previously adjusted, so tar as the powers of the executive extend. These claims arose out of the act of disarm ing a body of Texan troops under the com mand of Major Snively, by an officer in the service of the United States, acting under the orders of our Government; and the forci ble entry into the custom-house at Bve.'ly's landing, on Red river, by certain citizens of the United States, and taking away therefrom the goods seized by the collector of the cus toms as forfeited under the laws of Texas. This was a liquidated debt, ascertained to be due to Texas when an independent state. Her acceptance of the terms of annexation proposed by the United States does not dis charge or invalidate the claim. I recommend that provision be made tor its payment. The commissioners appointed to China during tho special session of the Senate in March last, shortly atierwards set out on his mission in the United States ship Columbus. On arriving at Rio de Janeiro on his pas sage, the state of his health had become so critical, that, by the advice of his medical attendants, he returned to the United States early in the month of October last. Com modore Biddle, commanding the East India squadron, proceeded on his voyage in the Columbus, and was charged by tho commis sioners with the duty of exchanging with the proper authorities the ratifications ot the treaty la'ely concluded with the Emperor of China. Since the return of the commission er to the United States, his health has been much improved, and he entertains the confi dent belief that ho will soon bo able to pro ceed on his mission. Unfortuntcly, differences continue to exist among some of the nations of South America, which, following our example, have estab lished their independence, while in others, internal dissension prevail. It is natural that our sympathies should be warmly enlisted for their welfare; that we should desire that all controversies between them should be ami cably adjusted, and their governments ad ministered in a manner to protect the rights, and promote tho prosperity of their people. It is contrary, however, to our settled policy, to interfere in their controversies, whether external or internal. I have thus adverted to all the subjects con nected with our foreign relations, to which I deem it necessary to call your attention. Our policy is not only peace with all, but good will towards all the Powers of earth. While we are just to all, we require that all shall be just to us. Excepting tho differences with Mexico and Great Britain, our relations Witb all civilized nations are of the moat satisfac tory character. It is hoped that in tbia en lightened age, these differences may be am icably adjusted. The Secretary of the Treasury, in his an nual report to Congress, will communicate a full statement of tho condition of our finan ces. Tho imports for the fiscal year ending on tho thirtieth of June last, were of value of one hundred and seventeen millions two hundred and fifty-four thousand five hundred and sixty-four dollars, of which the amount exported was fifteen millions three hundred and forty-six thousand eight hundred and thirty dollars leaving a balance of one hun dred and one millions nine hundred and sev en thousand seven hundred and thirty-four dollars for domestic consumption. The ex ports for the same year were of the value of one hundred and fourteen millions six hun dred and forty-six thousand six hundred and six dollais; of which, the amount of domes tic articles was ninety-nine millions two hun dred and ninety-nine thousand seven hun dred and seventy-six dollars. Tho receipts into the treasury during the same year were twenty-nine millions seven hundred aud six ty nine thousand one hundred and thirty-three dollars and fifty-six cents; of which, there were derived from customs, twenty-seven millions live hundred and twenty-eight thou sand one hundred and twelve dollars and seventy cents; from sales of public lands, two millions seventy-seven thousand and twenty-two dollars and thirty cents; and from incidental and miscellaneous sources, one hundred and sixty-three thousand nine hun dred and ninety-eight dollars and fifty-six cents. Tho expenditures for the samo peri od were twenty nine millions nine hundred and sixty-eight thousand two hundred and six dollars and ninety -eight cents; of which, eight millions five hundred and eighty-eight thousand one hundred and fifty seven dollar and sixty-two cents wore applied to the pay ment of tho public debt. The balance in the treasury on the first of July last, was seven millions six hundred and fifty eight thousand three hundred aud six dollars and twenty two cents. The amount of the public debt remaining unpaid on the first of October last was sev enteen millions seventy-five thousand ibur hundred and forty-five dollars and fifty-two cents. Further payments of the public debt would have been made, in anticipation of tho period of its reimbursement under the au thority conferred upon the Secretary of the Treasury by tho acts of July twenty-first, 1641, and of April fifteenth, and of March third, 1843, had not the unsettled state of our relations with Mexico menaced hostilo collision wilh that power. In view of such a contingency, it was deemed prudent to re tain in the treasury an amount unusually large for ordinary purposes. A few years ago, our whole national debt growing out of the Revolution and war of 1812 with Great Britain was extinguished, and we presented to the world the rare and noble spectacle of a great and growing peo ple who had ful'y discharged every obliga tion. Since that time, the existing debt hat been contracted; aud small as it is, in com parison with the similar burdens of most oth er nations, it should be extinguished at tho earliest practicable period. Should the state of tho country permit, and, especially if our foreign relations interpose no obstacle, it is contemplated to apply all the moneys in tho treasury as they accrue beyond what is re quired for the appropriation by Congress, t its liquidation. 1 cherish the hope of soon being able to congratulate the country on its recovering once more the lofty position which it so recently occupied. Our country, which exhibits to the world the benefits of self-government, in developing all the sources of national prosperity, owes to mankind the permanent example of a nation fiee from the blighting influence of a public debt. The attention of Congress is invited to the importance of making suitable modification and reductions of the rates of duty imposed by our present tariff laws. I ho object of imposing duties on imports should be to raise revenue to pay the necessary expenses of government. Congress may, undoubtedly. in the exercise of a sound discretion, discrim inate in arranging the rates of duty on differ ent articles; but the descriminations should be within tho revenue standard, and be mads with the view to raise money for the support of government. It becomes important to understand dis tinctly what is meant by a revenue standard,. the maximum ot which should not be exceed ed in the rates of duly imposed. It is con ceded, and experience proves, that dutiea may be laid so high as to diminish, or pro hibit altogether, the importation of any given a. tide, and thereby lessen or destroy the rev enue which, at lower rates, would be deriv ed from its importation. Such duties exceed the revenue rates, and are not imposed to raise money for the support of government. If Congress levy a duly, for revenue, of one per cent, on a given article, it will produce a given amount of money to the treasury, and will incidentally and necessarily afford pre-