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flrPREHI DENT'S .MESSACI) Fellow Citizens of the Senate and of the House of Representatives: 1 congratulate you and our common constituency upon the favorable auspices under which you meet for your lirst aqs aion. Our couutry is at peace Willi all the world. The agitation which, for a time, threatened to disturb the fraternal relations which make us one people, is fast subsiding; and a year of general health and prosperity has orowned the nation with unusual blessings. None can look back to the dangers which are past, or forward to the bright prospect before us, without feeling a thrill of gratification, at the same time that he must be impres sed with a grateful sense of our profound obligations to a benifiocnt Providence, whose paternal care is so manifest in the happiness of this highly favored land. Since the close of tin; last Congress certain Cubans and other foreigners res ident in the Uiiiled States, ,v'10 ^'ere more or less concerned h> J/1? previous invasion of Cuba, of being dis courngcd by its have agtun abused the hospitality' of this country, by making it the sc'ia of the equipment of another mjli'*ry expedition against that po3ses ?/on of hor Catholic majesty, in which they were countenanced, aided and join ed by citizens of the United States. On receiving intelligence that such designs were entertained, I lost no time in issu ing such instructions to the proper officers ?f the .United States as seemed to bo call ?fil for bv, the occasion. By the procla mation, a copy of which is herewith sub mitted, I also warned those who might bo in'dangcr of being inveigled into this schcme, of its uulawful character, and of the penalties which they would incur.?> For some time there was reason to hope that theso measures had sufficed to pre vent any such attempt. This hope, how ever, proved to be delusive. Very early in the morning of the third of August, a steamer called the Pampero, departed from New Orleans to Cuba, having on ,board upwards of four hundred armed men, with evident intentions to make war upou tho authorities of the island. This dxpedition was set on foot in palpable vi olation of the laws of the United States. Its leader was ? Spaniard, and several of the chief officers, and some others engag ed in it, were foreigners. The persons composing it, however, were mostly cit izens of the United Slates. Before this expedition set out, and probably before it was organized, a slight insurrectionary movement, which appeals to have beon soon suppressed, had taken place in the eastern quarter of Cuba.? The importance of this movement was un fortunately so much exaggerated in the accounts of it published in this countiy, that these adventurers seem to have been I led to believe that the Creole population ! of the island not only desired to throw oil - the authority of the mother country, but had resolved upon that step, and had be gun a well-concerted enterprise tor elleet ing it. The persons engaged in the ex pedition were generally young and ill-in- j formed, The steamer in which they epi-, barked fcft New Orleans stealthily and without a clearance. After touching at I Key West, she proceeded to the coast of Cuba, and, on the night between the 11th and lSih of August, landed the persons on bo*rd at Playtas, within about twenty leagues of Havana. The main body of them proceeded to, and took possession of, an inland village, six leagues distant, leaving others to fol- j low in charge of the baggage, as soon as the means of transportation could be ob tained. The latter, having taken up their line of march to connect themselves with the main body, and having proceeded nbout four leagues into the country, were attacked on the morning of the U?th bv a body of Spanish troops, and a, bioody conflict ensued ; after which they retreated to the place of discmbivrcation, where about fifty of them obtained boats ? and re-embarked therein, lliey were, however, intercepted among the keys near the shore by a Spanish steamer eruis Jtil' on the coast, captured and earned to Havana, and, after being examined be fore a military court, were sentenced to ; be publiclv executed, and the sentence was carried into effcct on 'he U>th of Au- ^ ^ On receiving information of what had octlttrred. Commodore Foxhall A. 1 ar-, ker wns instructed to proceed in the steam-frigate Saranao to Havana aud in quire into the charges against the persons executed, the circumstances under which they were taken, and whatsoever referred to their trial and sentenec. Copies ol the instruction*-from the Department of State to him and of his letters to that Depart ment, are herewith submitted. According to the record of the exam ination, the prisoners all admitted the ot fonces charted against them, ot being hostile invaders of the land. At the time of their trial and execution, the main body of the invaders was still in the field, ma kin? war upon the Spanish authorities and Spanish subjects. After the lapse of sotae davs,?being overcome by the Span isli troops, lltey dispersed on the SMlh ol August; LoCtz, their leader, was cap tured some days after, and executed on the 1st O' September. Many of his re maining followers were killed, or died of huuircr and fatigue, and the rest were made prisoners. Of these, none appear to have been executed. Several of them were pardoned upon application of their friends aud others, and the rest, about one hundred and sixty in number, were santto Spain. Of the final disposition insClc of t^esc we have no official tuforma Such is the melancholy result of this Segal and ill-fated expedition, lhns, thoughtless young men have been in duced, by false and fraudulent represen tations, to violate the laws of their coun try, through rash and unfounded expec tations of assisting to accomplish political revolutions in other States, and have lost tlveir lives in ^lie undertaking. Too se vere a judgement can hardly be passed, !jy the indignant sense of the community, upon those, who being better informed themselves, have yet led away the ardor of youth and an iH-directed love of polit ical liberty. The correspondence between this Government and that of Spain rela ting to this transaction is herewith com municated. , Although these offenders against the lawo have forfeited the protection of their Country, yet tVe government may, so far as is consistent vrll" i's relations to o'lier and us fixed purpose to main ijuor, too.' ?Jlow now . at - * tain and enfofce.fhe laws, entertain sym pathy for their unoffending families and friends, as well as, a feeling of compassion for themselves Accordingly no proper effort has been spared, ana none will be spared, to procure the release of such cit izens of the United States, engaged in this unlawful enterprise, as are now' in Con finement in Spain; but it, is to be hoped that such interposition .^ith: the govern men of that country may not be consider ed as affording any ground of expectation that the Government of the United will, hereafter, feel itself under any obli gation of duty to intercede for the -libera tion or pardon of such persons as arc fla grant offenders *bc law of nations and the laws of the United States. These laws mus'be executed. If we desire to mainMin our respectability among the ? nations of the earth, it'behoves us to en force steadily and sternly the neutrality acts passed by Congress, and to follow, as far as may be, the violation of those acts with condign punishment. But what gives a peculiar criminally to | this invasion of Cuba is, that under the lead of. Spanish subjects, and with the aid of citizens of the United States, it had its origin with many; in motives of cupidity. Mont}' was advanced by individ uals, probably in considerable amounts, to purchase Cuban bonds, as they have been called, issued bv Lopez, sold doubt less, at a very large discount, and for the pavment of which the public lands and public property of Cuba, of whatever , kind, and the fiscal resources of the peo ple and government of tliat island, from [ whatever source to be derived, , were piedgctl, no well as ilio good faith of i'ne government expected to be established, i All the means of payment, it is evident, , were only to be obtained by a process of j bloodshed, war, and revolution. ? None | will deny that those who set on foot mil itary expeditions against foreign States by means like these, arc fur more culpable than the ignorant and the necessitous whom they induce to go forth, as the os tensible parties in the proceeding. These originators of the invasion of .Cuba seem to have determined, with coolness and system upon an undertaking which should disgrace their country, violate its laws, and put to hazard the lives of ill-inform ed and deluded men. You will consider whether further legislation be necessary to prevent the perpetration of such offen ces in future. No individuals have a right to hazard the peace of the country, or to violate its laws upon vague notions of altering or reforming governments in other &ut<es. The principle is not only reasonable in it self, and in accordance with public law, but is engrafted into the codes of other nations as well as our own. But while such are the sentiments of this go\ ern nient, it may be added that every inde pendent nation must be presumed to be able to defend its possessions against unau thorized individuals banded together to attack them. The Government of the United States, at all times since its etsab lishmcnt, has abstained and has sought to restrain the citizens of the country, from entering into controversies between other powers, and to observe all the du ties of neutrality. At an early period of the Government, in the administration of Washington, several laws were passed for this purpose. The main provisions of these laws were re-enacted by the act ot April, 1810, by which, amongst other tliinfs, it was declared that if any person shal?, within the territory or jurisdiction of the United States, begin, or set on foot, or provide or prepare the means for any military expedition or enterprise to be carried on from thence against the ter ritory or dominion of any foreign prince or State, or of any colony, district or peo- j pie with whom the United btates are at peace, every person so oBending hi all be lined, not exceeding three thousand <lol; 1 vrs and be imprisoned not more three years ; and this law has been exe cuted and enforced to the full extent of the power of the Government, from that dav to tliis. in proclaiming and adhering to the doctrine of neutrality and non inden tion the United States have not followed the lead of other civilized nations; they have taken the lead themselves and have been followed by others. This was ad mitted bv one of the most eminent of modern British statesmen, w-ho said in Parliament, while a minister of the crown, I ?? that if he wished for a guide in a sys tem of neutrality, he should take that laid down by America in the days of Washington, and the secretaryship of Jefferson and wo see in fact that the act of Congrass of 1818 was followed, the succeeding year by an act of the I ar i Kanient of England, substantially the same in its general provisions. L p to j that time there had been no similar la in England, except certain highly penal statutes passed in the reign of George II, prohibiting English subjects from enhs tine in foreign service, the avowed object of which statutes was, that foreign ar mies raised for the purpose of restoring the house of Stuart to the throne, should not be strengthened by recruits trom Eng land herself. i All must sec that difficulties may arise in earn ing the laws referred to into exe ? cution in a country now liav ing three or four thousand miles of seacoast with an infinite number of ports and harbors anc ' small inlets, from some of which ful expeditions may suddenly set forth, without the knowledge of Government, 1 against the possessions of foreign states. Friendly relations with all, but entang ling alliances with none, has long been a maxim with us. Our true mission is not to propagate our opinions, or impose upon other countries our form of government, by artifiee or force ; but to teach by ex ample, and show "by our success, mode ration and justice, the blessings of selt iroverament, and the advantages of free institutions. Let every people choose for itself, and make and alter its political in stitutions to suit its own condition and convenience. But, while we avow and maintain this neutral policy ourselves, we are anxious to see the same forbearance on the part of other nations, whose forms of government are different from our own. The deep interest which we feel in the spread of liberal principles and the estab lishment of free governments, aud the sympathy with which we witness every struggle against oppression, forbid that wo should be indiilerent to a case in which the strong arm of a foreign power, is invoked to stiffle public sentiment and The governments of Great Britain#nd France nave issued orders io their naval commanders on the West India station to prevent by force, if necessary, the landing of adventurer^" from., any nation on the the Island of Cuba with hostile intent.? The copy of a memorandum of a conver sation on the subject between the Charge J 'Affairs of her Britanio Majesty, and the Acting Secretary of State, and of a sub sequent note of the former to the Depart ment of the State, are herewith submitted, together with a copy of a note of the Ac ting Secretary of State to the Minister of the French Republic, and of the reply of ihe latter on the same subject. These ' papers will acquaint you with the grounds of this interposition of the two' leading commercial powers of Europe, and with the apprehensions, which this Govern ment could not fail to entertain, that such interposition, if carried into effect, might lead to abuses in derogation of the mari time rights of the United States. The maritime rights of the United States are founded on a firm, secure, and well-defi ned basis ; they stand upon the ground of National Independence and public law, and will be maintained in all their full and just extent. The principle which this Government has heretofore solemnly announced it still adheres to, and will maintain under all circumstances and at all hazzards. That principle is, that in every regularly docu mented merchant vessel, the crew who navigate it, *nd ?bo*e on board cf ii, will find their protection in the fla<? which is over them. No American ship can be allowed to be visited or searched for the purpose of ascertaining the character of individuals on board, nor can there be al lowed any watch by the-vessels of any foreign nations over American vessels on the coast of the United States Or the seas adjacent thereto. It will be seen by the last communication from the British Charge d'Affaires to the Department of State, that he is authorised to assure the Secretary of State that every care will be taken that, in executing the preventative measures against the expeditions, which the United States Government itself has denounced as not being entitled to the protection of any government, no interfe rence shall take place with the lawful commerce of any nation. In addition to the correspondence on this subject, herewith submitted, official information has been received at the De partment of State, of assurances by the French government that, in the orders given to the French naval forces, they were expressly instructed, in any opera tions they might engage in, to respect the flag of the United Stales wherever it might appear, and to commit no act of hostility upon any vessel or armament under its protection. Ministers and consuls of foreign nations ' are the means and agents of communica j tion between us and those nations, and it is of the utmost importance that, while i residing in the country, they should feel a perfect security so long as they faith fully discharge their respective duties and are guilty of no violation of our laws.? This is the admitted law of nations, and no country has a deeper interest in main taining it than the United States. Our commerce spreads over every sea and vi sits every slime; and our ministers and consuls are appointed to protect the inte rests of that commerce, as well as to guard the peace of the country and maintain the honor of its flag. But how they discharge these duties unless they be themselves protected; and, if protected.it must be by the laws of the country in which they reside. And what is due to our o?vn pub lic functionaries residing in foreign nations i.-> exaclly the measure of what is due to the functionaries of other governments re siding here. As in war, the bearers of : flags of truce arc sacred, or else wars would be interminable, so in peace, em bassadors, public ministers and consuls, I charged with friendly national intercourse, I are objects of especial respect and protec ! tion, each according to the rights belong ing to his rank and station. In view of these important principles, it is with deep mortification and regret I announce to you that, during the excitement growing out 6f the executions at Havana, the oflice of her Catholic majesty's consul at New Or leans was assaulted by a mob, his proper ty destroyed, the Spanish flag found in the oflice carried oil' and torn in pieces, and he himself induced to flee for lus per sonal safety, which he supposed to be in danger. On receiving intelligence of these events, I forthwith directed the attorney of the United States residjng in New Or leans, to inquire into the facts and the ex tent of the pecuniary loss sustained by the consul, with the intention of laying them before you, that you might make provi sion for such indemnity to him as a just regard for the honor of the nation and the respect which is due to a friendly power might, in your judgment, seem to require. The correspondence upon this subject be tween the Secretary of State and her Cath olic majesty's plenipotentiary, is herewith i transmitted. The occurrence at New Orleans has led me to give my attention to the state of our laws in relation to foreign embassa dors, ministers and consuls. I think the legislation of the country is deficient in not providing sufficiently either for the protection or the punishment of consuls. I therefore recommend the<eubject to the consideration of Congress. Your attention is again invited to the question of reciprocal trade between the United States and Canada, and other Bri tish possessions near our frontier. Over tures for a convention upon the subject have been received from her Britannic Ma jesty's Minister Plenipotentiary, but it that the matter should be regulated by reciprocal legislation'. Documents are laid before you showing the terms which the British government is willing to offer, and the measures which it mav adopt, if some arrangement upon this subject shall not be made. From the accompanying copy of a note from the British Legation at Washington, and tlic reply of the Department of State thereto, it will appear that her Britannic Majesty's government is desirous that a part of the boundary line between Oregon and the British possessions, should be au thoritatively marked out, aud that an in tention wps expressed to apply to Con gress for an appropriation to defray the expense thereof on the part of the United States. Your attention to the subject is seems to bo in many accordingly invited, and % proper appro priation, recommended. - A convention fqr the adjustment cjf claims of citizens of the United States against Portugal has been concluded, and the ratifications have been Exchanged.? The first instalment of the amount to be paid by Portugal feU due on the 30tli of September last, and has been paid. The President of the French .republic, according to the provisions of the cpnven tion, has been selected as arbiter in the case of the General Armstrong; and has signified thit he accepts the thut and the high satisfaction he feels in acting as the common friend of two nations, with which France is united by sentiments of sincere and lasting amity. The Turkish government has expressed its thanks for the kind reception given to the Sultan's agent, Amin Bey, on the oc casion of his recent visit to the United States. On the 28th of February last, a despatched was addressed by the Secre tary of State, to Mr. Marsh, the American Minister at Constantinople, instructing him to ask of the Turkish government per mission for the Hungarians, then impris oned within the dominions of the Sublime Porte, to remove to this country. On the 3d of March last, both Houses of Con gress passed a resolution requesting the President to authoriie the employment of a public vessel to convey to this country Louis Kossuth and his associates in cap tivity. The instruction above referred to was complied with, and the Turkish govern ment having released Governor Kossuth : and his companions from prison, on the ! 10th of September last, they embarked on. board of the United States steam-fri gate Mississippi, which was selected to carry into effcct the resolution of Con gress. Governor Kossuth left the Missis sippi at Gibraltar, for the purpose of ma king a visit to England, and may shortly [be expected in New York. By commu nications to the Department of State he has expressed his grateful acknowledge-, ments for the interposition of this govern ment in behalf of himself and his associ ates. This country has been justly re garded as a safe asylum for those whom political events have exiled from their own homes in Europe ; and it is recommended to Congress to consider in what .manner Governor Kossuth and his companions, brought hither by its authority, shall be received and treated. It is earnestly to be hoped that the dif ferences which have for sometime past been pending between the government of the French republic and that of the Sand wich Islands, may be peaceably and du rably adjusted, so as to secure the inde pendence of those islands. Long before the events which have of late imparted so much importance to the possessions of the United States on the Pacific, we acknowl edged the independence of the Hawaiian government. This Government was first in taking that slep, and several of the lead ing powers of Europe immediately follow 'cd. We were influenced in this measure by the existing and prospective impor tance of the islands as a place of reluge and refreshment for our vessels engaged in the whale fishery, and by the conside ration that they lie in the course of the great trade which must, at no distant day be carried on between the western coast of North America and Eastern Asia. We are also influenced by a desire that those islands should not pass under the control of any other great maritime State, but should remain in an independent con dition, and so be accessible and useful to the commerce of all nations. I need not say that the importance of these conside rations has been greatly enhanced by the sudden and vasf- ilf"*?inpnmpnt whi?f> tK? 1 interests of the United States have at- i tained in California and Oregon, and the ' policy heretofore adopted in regard to those islands will be steadily pursued. It is gratifying not only to those who consider the commercial interests of na tions, but also to all who favor the pro gress of knowledge and the diffusion of religion, to see a community emerge from a savage state and attain such a degree of civilization in those distant seas. It is much to be deplored that the in ternal tranquility of the Mexican repub lic should again be seriouslv disturbed, for, since the peace betwen that republic and the United States, it has enjoyed such comparative repose that the most favora ble anticipations for the future might, with a degree of confidence, have been indul ged. These, however, have been thwar ted by the recent outbreak in the S:ate of Tamauliapas, on the right bank of the Rio Bravo. Having received information that persons from the United States had taken pari in the insurrection, and appre hending that their example might be fol lowed by others, I caused orders to be issued for the purpose of preventing any hostile expeditions against Mexico from being set on foot in violation of the laws of the United States. I likewise issued a proclamation ttpon the subject, a copy of which is herewith laid before you. This appeared to be rendered imperative by the obligations of treaties and the gene ral duties of good neighborhood. In my last annual message I informed Congress that citizens of the United States had undertaken the connexions of the two oceans by means of a railroad across the Isthmus of Tehauntapec, under a grant of the Mexican government to a ci tizen of that republic ; and that this en terprise would probably be prosecuttd with energy whenever Mexico should con sent to such stipulations with the Go vernment of the United States as should impart a feeling of security to those who should invest their propeaty in the enter prise. A convention between the two govern ments for the accomplishment of that end has been ratified by this Government, and only awaits the decision of Congress and the"Executive of that republic. Some unexpected difficulties and delays have arisen in the ratification of that con vention by Mexico, but it is to be presu sumed that her decision will be governed by just and enlightened views, as well of the general importance of the object, as of her own interests and obligations. In negotiating upon this important sub ject, this Government has had in view one and only one object. That object has been, and is, the construction or at-, tainment of a passage from ocean to ocean, the shortest and best for travellers and merchandise, and equally open to all the world. It has sought to obtain no terri torial acquisition, nor any advantages pe culiar to itself; and h would see, with the gre&tekregret, that Mexico should op pose any obstacle to the accomplishment of- an flbterprisfl which promises so mycK conveaienco to the whole commercial world, and such eminent advantages to Mexico heriel? Impressed with these sentiments .and these convictions, the Go vernment will continue to exert all pro per efforts to bring about the necessary arrangement with the republic of Mexico for tfye speedy completion of the work. Fot some months past the republic of Nicaragua has been the theatre of one of those civil convulsions, from which the cause of free institutions, and the general prosperity and social progress of the States of Central America, have so often and so severely suffered. Until quiet shall have been restored, and a government appa rently stable shall have been organized, no advance can prudently be made in disposingof the questions pending between the two countries. I am happy to announce that an inter oceanic communication from the mouth of the St. John to the Pacific has been so far accomplished as that passengers have actually traversed it and merchandise has been transported over it; and when the canal shall have been completed, accor ding to the original plan, the means of communication will be further improved. It is understood that a considerable part of the railroad across the Isthmus of Panama has been completed, and that the mail and passengers will in future be con veyed thereon. "Whichever' of the several routs between! the two oceans may ultimately prove j most eligible for travellers to and from j the different States on the Atlantic and | Gulf of Mexico and our coast on the Pa-! cific, there is little reason to doubt that j all of them will be useful to the public, and will liberally reward that individual enterprise, by which alone they have been or are expected to be oarried into effect. Peace has been concluded between the contending parties on the Island of St. Domingo, and it is hoped upon a durable basis.' Such is the extent of .our com mercial relations with that island, that the United States cannot fail to feel a strong interest in its tranquility. The office of Commissioner to China remains unfilled; several persons have ? been appointed, and the place lias been j offered to others, all of whom have decli ned its acceptance, on the ground of the j inadequacy of the compensation. The j annual allowance by law is six thousand dollars, and there is no provision for any outfit. I earnestly recommend the con- j sideration of this subject to Congress.? j Our commerce with China is highly im- j portant, and is becoming more and more | so, in consequence of the increasing inter course between our ports 011 the Pacific ' coast and Eastern Asia. China is un- j derstood to be a country in which living is very expensive, and 1 know of no re a-; son why the American Commissioner sent: thither, should not be placed, in regard to compensation, on an equal footing with ministers who represent this country at - the courts of Europe. liy reference to the report of the Soc | rotary of tbe Treasury, it will be seen that the aggregate receipts for the fiscal year amounted to $52,312,979 C7; which, with the balance in the Treasury on 1st July, 1850, gave, as the available means 'for the year, the sum of $50,917,524 3G. The total expenditures for the same period were ?48,005,878 68. J'he total imports lor the vear ending SOth Juno. 1851. wcro $215,725,995 Of which there were in specie 4.987.901 Tlie exports l'or the same period were #217,517.1 SO . Uf which there wore of domestic products $173.5 l'V555 Foreicn goods re-exported 9,738,605 ?Socij 29.231.SS0 "?asiY.ai. ,iii? Since the 1st of December last the pay ments in cash on account of the public debt, exclusive of interest, have amounted to ?7,501,456 56; which, however, in cludes the sum of ?3,242,400 paid under the 12th article of the treaty with Mexico, and the further sum of ?2,591,213 45, being the amount of awards to American citizens under the late treaty with Mexi co, for which the issue of stock was au thorized, but which was paid in cash from the Treasury. The public debt on the 20th ultimo, exclusive of the stock authorized to be issued to Texas by the act of 9th Septem ber, 1850, was ?62,560,395 26. The receipts for the next fiscal year are estimated at ?51,800,000, which, with the probable unappropriated balance : in the Treasury, on the 30th June next, will give, as the probable available means for that year, the sum of ?63,258,743 09. | It has been deemed proper, in view of, the large expenditures consequent upon the acquisition of territory from Mexico, j that the estimates for the next fiscal year, should be laid before Congress in such 1 manner as to distinguish the expenditures so required from the otherwise ordinary demands upon the Treasury. The total expenditures for the next fis cal year are estimated at ?42,892,299 19 of which there is required for the ordina ry purposes of the Government, other than those consequent upon the acquisition of our new Territories, and deducting the payments on account of the public debt, the sum of ?33,343,190 08 ; and for the purposes connected directlr or indirectly with those Territories, anJ in the fulfil ment of the obligations of the Govern ment, contracted in consequence of their acquisition, the sum of ?9,549,101 11. If the views of the Secretary of the | Treasury in reference to the expenditures required for these Territories shall be met by corresponding action on the part of Congress, and appropriations made in ac cordance therewith, there will be an es timated unappropriated balance in the! Treasury on tbe 30th June, 1853, of ?20, 366,443 90, wherewith to meet that por tion of the public debt due on the first July following, amounting to ?6,237,931 35, as well as any appropriations which may be made beyond the estimates. In thus referring to the estimated ex penditures on account of our newly ac quired Territories, I may express the hope that Congress will concur with me in the desire that a liberal course of poli cy may be pursued towards them, and that every obligation, express or implied, entered into in consequence of their acqui sition, shall be fulfilled, by the most lib eral appropriations for that purpose. The values of oar domestic exports for the last fiscal rear, as compared with those of the previous year, exhibit as in crease of $43,646,382. At first view this condition of our trade with foreign nation* would seem to present the most flattering hopes of its future prosperity. An examination of the details of our ex ports, however, will shew that the in creased value of ouf exports for the last fiscal year is to be found in the high price of cotton which pretailed during the first half of that year, which price has since declined about one-half. The value of odr exports of breadstuffs and provisions, which it was supposed the incentive of a low tariff and large impor tations from abroad would have greath augmented, has fallen from $68,701,921, in 1847, to $26,061,373 in 1860, and to $21,948,653 in 1851, with a strong prob ability, amounting almost to a certainty, of a still farther reduction in the current year. The aggregate values of rice exported during the last fiscal year, as compared with the previous year, also exhibit a de crease amounting to $460,917, which, with a decline in the values of the exports of tobacco for the same period, make an afferreeate decrease in these two articles of $1,166,751. The policy which dictated a low rate of duties on foreign merchandise, it was thought by those who promoted and es tablished it, would tend to benefit the far ming population of this country, by in creasing the demand and raising the price of agricultural products in foreign markets. The foregoing facts, however, seem to show incontestibly that no such result has followed the adoption of this policy. On the contrary, notwithstanding the repeal' of the restrictive corn laws in England, the foreign demand for the products of the American farmer has steadily declin ed, since the shoiu crops and consequent famine in a portion of Europe have been happily replaced by full crops and com parative abundance of food. It will be seen by recurring to the commercial statistics for the past year, that the value of our domestic exports has been increased in the single item of raw cotton by <$40,000,000 over the value of that export for the year preceding. This is not due to any increased general demand for that article, but- to the short crops of the preceding year, which created an in creased demand and an augmented price for the crop of last year. Should the cot ton crop now going forward to market be only equal in quantity to that of the year preceding, and be sold at the present pri ces, then there would be a falling off in the value of our exports for the present fiscal year of at least $-10,000,000, coin pared with the amount exported for the year ending 30th June, 1051. The production of gold in California for the past year seems to promise a large supply of that metal from that quarter ful some time to come. This large annual increase of the currency of the world must be attended with its usual results. These! have been already partially disclosed in the enchantment of prices and a rising spirit of speculation and adventure, tend ing to overtrading, as w ell at home as abroad. Unless Some salutary check shall be given to these tendencies, it is to be feared that importations of foreign goods beyond a healthy demand in this country will lead to a sudden drain of the precious metals from us, bringing with it, as it has done in former times, the most disastrous consequences to the business and capital of the American people. The exports of specie to liquidate our foreign debt during the past fiscal year have been $24,363,970 over the amount of specie imported. The exports of spe cie during the first quarter of the present fiscal year have been $14,651,027.? Should specie continue to be exported at this rate for the remaining three quarters uf tlila jufii, It -wilt drain lYom our metlll tic currency during the year ending 30th June, 1052, the enormous amount <>f i*ao, 007,308. * In the present prosperous condition oT the national finances, it will become the duty of Congress to consider the best mode of paying off the public debt. If the present and anticipated surplus in the ! Treasury should not be absorbed by appropriations of an extraordinary char acter, this surplus should be employed in such way, and under such restrictions, as Congress may enact, in extinguishing the outstanding debt of the nation. By reference to the act of Congress ap proved 9ih September, 105J, it will be seen that, in consideration of certain con cessions by the State of Texas, it is pro vided that the " United States shall pay to the State of Texas the sum of ten mil lions of dollars in a stock bearing five per cent, interest, ami redeemable at the end of fourteen years, the interest paya ble half yearly, at the Treasury of the United States." In the same section of law it is further firovided " that no more than five lnil ions of said stock shall be indued until the creditors of the State holding bonds and other certificates of stock of Texas, for which duties on imports uerc specially pledged, shall lirst lile at the Treasury uf the United States releases of nil claims against the United States, for or on ac count of said bonds or certificates, in snch form as shall be prescribed by the Sec retary of the Treasury, aud approved by the President of the United States." The form of release thus pro\ ided for has been prescribed by the Secretary of the Treasury, and approved. It lias been published in all the leading newspapers in the commercial cities of the United States, and al) persons holding claims of1 the kind specified in the foregoing provi- ; so were required to file their releases (in the form thus prescribed) in the Treasu ry of the United States, on or before the 1st day of October, 1851. Although this publication lia-s been continued from the 25th day of March, 1051, yet ftp to the first of October last comparatively few releases have been filled bj* the creditors of Texas. The authorities of the State of Texas, at the request of the Secretary of the Treasury, have furnished a schedule of the public debt of the State created prior to her admission into the Union, with a copy of the laws under which each class was contracted. I have, from the documents furnished b7 the State of Texas, determined the classes of claims which in my judgment fall within the provisions of the act of Congress of the 9th of September, 1850. On being officially informed of the ac ceptance by Texas of the propositions, contained in the act referred to, caused; the stock to be prepared, and the fire millions which are to be issued uncondi tionally, bearing an interest of five per ?fttfeirom the first ??LV 1861/ have been for some ta^sSlttabe de_. livered to the State of TeflS^ au. thorities of Texas, up to the pre*v4i have not authorized any one to rCv;v0 this stock, and it remains in the Treasui, Department, subject to the order of Tex [ as. The release, required by law to be de posited in the Treasury, not having been filed there, tbe remaining five millions ! have not been issued. This faist amount I of the stock will be withheld from Texas ! until the condition# upon which it is to be delivered shall bo complied with by the creditors of that State, unless Congress shall otherwise direct by a modification of the law. . In my last annual message, to which 1 respectfully refer, I stated briefly the reasons which induced me to recommcn J I a modification of the present tariff, by ! converting the ad valorem into specific | duty, wherever the article imported was I of such a character as to permit it, ana I that such a discrimination should be made, in favor of the industrial pursuits of our ! own country, as to encourage home pro 1 duction without excluding foreign oompe tion. The numerous frauds which continue l<t be practised upon tho revenue, by false invoices and undervaluations, constitute i nn unanswerable reason for adopting spe cific instead of ad valorem duties in all ' cases where the nature of the commodity docs not forbid it. A striking illustration ?of these frauds wiil be exhibited in the : Report of tho Secretary of the Treasury, showing the custom-house valuation of articles imported under ft foriuer law sub ject to specific duties, when tliere was no inducement to undervaluation, and tl?e j cus torn-house valuation of the same art i - ! cles, under the present system of nd va lorem duties, so generally reduced as to leave no doubt of the existence of the ' most flagrant abuses uuder the existing laws. This practical evasion of the pre ! sent law, combined with the languishing condition of somo of the great interests ? of the country, caused by over impor tations and consequent depressed prices, and with the failure in obtaining i\ for? eign market for our increasing surplus of breadstuff and provisions, has induced me to recommcnd a modification of the i existing tariff. The report of the Secretary of the In terior, which accompanies this communi cation, will present a condensed statement of the operations of that important de partment of the Government. it will be seen thai the cash sales ol the public lauds exceed those of the pre feeding year, and that there is reason to anticipate a stUl further increase, notwith standing the large donations which have been made [to many of the States, and the liberal grants to individuals as a re nard for military services. This fact fur nislica very gratifying evidences of the growing wealth ar.d prosperity of our country. > Suitable measures- have been adopted for commencing the survey ot the itiblic ! lands in California and Oregon. Si rvcy inlj- parlies have been organized, and t some progreshas been made in establish*, ing the principle bast) and meridian lines. But further legislation and addition ;il ap propriations will be necessary "be foi u the i proper subdivisions can be made, ai d the general land system extended over those remote parts of our territory. On the 3d of March last an net was j passed providing for the appointment of 1 three commissioners to settle private land j claims in California. Three persons were immediately appointed, all of whom, | however, declined accepting the office, in consequence of the inadequacy of the compensation. Others were .ui'jinuifb" | i* i?ui t him/ j declined ; and it was not until late in th?; season, that the services of suitable per 1 sons could be secured. A majority of tho commissioners convened, in this city on the lUlh of September last, when de tailed instructions were given to them in regard to their duties. "Their first mee ting for the transaction of business will be held in San Francisco on the 8th day of the present month. I have thought it proper to refer to these ficts, not only to explain the causes of the delay in tilling the commission, but to call your attention to the propriety of increasing the compensation of the commissioners. The office is one of ^reat labor and responsibility, and the compensation should be such as to com mand men of a high order of talents and the most unquestionable integrity. The proper disposal of the mineral lands of California is a subject surroun ded by great difficulties. In my last an nual me-sage I recommended the survey and sale of them in small parcels, uudcr sucli restrictions as would effectually guard against monopoly and speculation. But upon further information, and in deference to the opinions of persons familiar with the subject, 1 am inclined to change that recommendation, and to udtise Unit tl?c;y be permitted to remain, as at present, a common field, open to the enterprise and industry of all our citizen*, until farther experience shall have developed the best policy to be ultimately adopted in regard to them. It is safer to suffer the inconve niences that now exist, for a .short period, than, by permature legislation to fnsten on the country a system founded in er ror, which may place the whole subject beyond the future control of Congress. Tlje agricultural lands should, nowcv er, be surveyed and brought into market with as little delay as possible, that tho titles may becotna fettled, and the inhab itants stimulated to make permanent im. provemenU, and enter on the ordinary pursuits of life. To effect these objects it is desirable that the necessafv provisions be made by law for the establishment of land officcs in California and Oregon, and for tho efficient prosecution of the sur veys at an early uay. liome difficulties have occurred in or ganizing the Territorial government* of New Mexico and Utah ; and, when more accurate information shall be obtained of the causes, a further communication will be made on that subject. In my last annual communication to Congress, I recommended the ettablish ment of an Agricultural Bureau, and I take this occasion again to invoke your favorable consideration of the subject. Agriculture may justly be regarded aa the great interest of our people. Four fifths of our active population are employ ed in tbe cultivation of the soil, and the rapid expansion of our settlements over