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were brethren and friends.and shared alike
willi each other common toils, dangers and sufferings. Now, when their work is en ded when peace is restored, and they re turn again to their homes put off the ha biliments of war, take their places in so ciety and resume their pursuits in civil life, surely a spirit of harmony and concession, and of equal regard for tho rights of all, and of all sections of the Union, ought to prevail in providing Governments for the acquired Territories the fruits of their common service. The whole people of tho United Statesand of every State, contrib uted to pay the expenses of that war; and it would not be just for any one section to exclude another from all participation in the acquired territory. This would not be in accordance with the just system of Gov ernment which the frame rs of our Consti tution adopted. The question is belioved to be rather ab stract than practical, whether slavery ever cun or would exist in any portion of the acquired territory, even if it were left to the option of the slaveholdin States them selves. From the nature of the climate and productions of the country, in much the larger portion of it, it is certain it could never exist; and, in the remainder, would - not. But, however this may be, the question' involving as it does a principle of equality of rights of the separate ad several Slates, as equal copartners in the confederacy, should not be disregarded. In organizing Governments over their territories, no duties imposed on Congress by the Constitution require that they should legislate on the subject of slavery, while their power to do so is not only seriously questioned, but denied, by many of the soundest expounders of that instrument. Whether Congress shall legislate or not, the people of the acquired territories, when assembled in convention, will possess the whole and exclusive power to determine whether slavery shall, nr shall not, exist within their limits. If Congress shall ab stain from interfering in the question, the people of these territories will be left free to adjust it as they may think proper, when they may apply for admission as Slates into the Union. No enactment of Congress as could restrain tho people of any of the sovereign Slates of tho Union, old or new, slaveholding or non-slaveholdinp, from de tei mining the apprehensions which were entertained by some of our statesmen in the earlier period of our government that our system was incapable of operating with sufficient energy nnd success over largely extended territorial limits. Those who maintained that if this system was adopted, it would fall to pieces by its own weak ness, have been disappointed by our expe perience. By the division of power be tween the Slates and the Federal Govern ment, the latter is found to operate vViih as much energy at the extremes as in tho cen tre. It is as sufhcient in the remotest of the thirty States which now compose (he Union, as it was in the thirteen States which formed our confederacy. Indeed, il may bo doubted, whether, if nur present popu lation had bern confined within ihe limits of the original thirteen Slates, the tenden cy to concentration would not have been such as to have encroached upon the es sential reserved rights of the States, and ihus make the Federal Government a wide ly different one, practically, from what it id in theory, and was intended to be by its framers. So far from entertaining appre hensions of the safely of our system by the extension of our territory, ihe belief is confidently cntcrlained, that each new Stale give sslrcngih and additional guaran tee for the preservation of the Union it self. In pursuance of ihe provisions of the 13 h Ar tide of ihe treaty of pence, friendship, limits nnd settlement wall ihn republic of Mexico, and of the Act of July 29th, 1848, claims of our cili xans which has been alieady liquidated, and de cided against ihe Mexican Republic, amounting with the interest thereon, to two millions twenty three thousand eight hundied and ih'rty iwo dol lars fifiy-one cents, have been liquidated and pnid. Tliero remains lo be paid of these claims, 74, 192 76. Congress, al its lasl session, having made no provision lor executing Ihn lo:h Article of the ireny, tiy wnicn l lie United states assumed lo make satisfaction for the "unliquidated claims" of our citizens against Mexico, an amount excee ding 63,250,000, the subject is again recomnien tied lo your favorable consideration. Tbe exchange of ratification in the treaty wilh Mexico took place cn the 30ih of May, 1843. Within one year after the lime, the Commissioner and Purveyor, which each government stipulated to appoint, are required lo meet at die Port of San Diego and proceed to run and mark the said b3undary in its whole course, lo llie mouth of ihe T- n . i t t -i, iv o Diavo uet none, it win De seen liom tins provision that the period within which these sur veyors or Ihe respective governments are lo meet at San Diego, will expire on the 10ih of May, 1S49. Congress, at the close of its last session, made an appropriation for the expenses of run. ningand marking the boundary line between the two countries, but did not fix the amount of sala ry which Bhould be paid lo the commissioner and surveyor lo be appointed on ihe part of ihe Uni ted Slates. It is desirable that ihe amount of com pensalion they shall receive should be prescribed by law, and not lefl, as at present, lo executive discretion. Measures were adopted at ihe earliest period lo O'gmlze "ihe lenilorial government of Oregon," as authorized by the al of 1 lih of August, lust. The Governor and Marshal of the Territory, ac- companied by a small escort, lefl the frontier of Missouri in September last, and tuok ihe south em route by the way of Santa Fe and the river Gila, to California, wilh the intention of proceed ing llienceon one of our vessels to their destina tion. The Governor was fully advised of the great importance of his early arrival in thai coun try, end it is confidently believed ho may reach Oregon in the latter part of the present month, or early in ihe next. The other officers for the i erilory nave proceeded by sea In the month of May last, I communicated : information to Congress that an Indian War had bioken out in Uregon, and recommended that eu thoriiy be given to raise an adequate number of Volunteers, to proceed without delay, to llie as sistance of our fellow citizens in ihitt Teritory and ihe authority lo raie such a force. noihvin 1 been granted by Congress, as soon as their ,er-j vices could be dispensed with in Mexico, o,der were issued lo the Kegimenl of Mounted Uifla. men lo proceed lo Jefferson Barracks, in Missou ri, and to prepare lo march lo Oregon as soon as the neceisnry provisions could bo made. Shortly before il was ready lo march, it was arrested by the provision of the Act passed by Congress on the lasl day of the last session, which directed that all non comiirssioncd officeis, musicians, or pri vates, in the regiment, who had been in service, oe uncharged, the effect or this provision was lo disband the rank and file of the regiment; and be- lore their pieces could be filled by recruits, the season had so far advanced that il was impossible to pioceed until the opening of next spring. In Ihe month of October lasl, the accompany ing communication was received fiom the Gover nor of the temporary government of Oregon, giv ing information of the continuation of the Indian disturbances and of the destitute and defenceless condition of the inhabitants. Orders were imme diately transmitted to the commander of our squad ron in the pacific, lo despatch to their assistance a part of the navy on thai station, to furnish them wilh arms and ammunition, and to continue to give them such aid and protection as the navy could afford, until the army could reach the coun try. Il is the policy of humanity, and one which has always been pursued by the .United States to cultivate the good will of the Aboriginal tribes of the continent, and lo restrain them from making war and indulging in excesses, by 'mild means rather than by torce. . 1 hat this could have been done with (he tribes in Oregon, had the Teritory been brought under the government of our laws at an eaily period, and had suitable measures been adopted by Congress, such as now exist in our intercourse with ihe other Indian tribes, wilh in our limits, cannot be doubted. Indeed, the im mediate and only cause of existing hostility of the Indians of Oregon, are represented lo have been Ihe long delay of the United Stales, in mak ing lo them some (rifling compensation in such ar. tides as they wanted, for the country now occu pied by our emigrants, which the Indians claimed and over which ihey formerly roamed, ihe com pensalion hBd been promised to them by the tern porary uovernment established tn Uregon, but its luliillinent had been postponed Irom tune to lime, for nearly two years, whilst those who made it had been anxiously awaiting for Congress to eslab lish a Territorial Government over the country. The Indians became al length distrustful of their good faith, and sought redress by plunder and massacre, which hnally led to the present difficul ties. A few thousand dollars in suitable presents as compensation lor the country which had been taken possession of by our citizens, would have satisfied the Indians, and have prevented the war, A small amount distributed, it is confidently be. lieved, would restore quiet. In this Indian war, our fellow-citizens of Oregon: who have been compelled to take the field in their own defence have performed valuable military services, and have been subjected to expenses which have fall en heavily upon them; so justice demands that provision should be made by Congress, to com pensate them for their sei vices, or to refund lo them the necessary expenses which rhey have in curred. I repeat the recommendation heretofore made lo Congress, that provision he made for tha ep poifitment of a suitable number of Indian Agems to reside among the tribes of Oregon, end that a small sum be appropriated lo enable these agents to cultivate friendly relations with them. Ifthi be done, the res'due ol a small mililary force will be all (hat will be necessary to keep them in check and preserve peace. I recommend that similar provisions be made as regards the tribes inhabiting Northern Texas and New Mexico, California, and the extensive region lying between our settlements and posses sions; as the more ellective means of preserving peace upon our borders, and within the acquired territory. The Secretary of the Treasury will, in his an nual report, exhibit a highly satisfactory state ment of the condition of the Finances. The imports of the fiscal year ending on the 30ihof June last, woreof the value of $151,977, 87G, of which the amount exported was $2l,. 128.010, h aving $133,819,866 in the country for domestic nse. The value of the exports for (ho same period was $ 154,082,131, consisting of domestic pro ductions, amounting to $132,904,131, and $ 21,- 128.010 unsold oT foreign articles. The receip's into the Treasury for the same period exclusive of loans, amounted lo $25,436,- 750 56, of which there was derived from customs $35,755,050 95; from sales of public lands $2,328,042 56; and from miscellaneous and in cidenlol sources, 8351,037 07. Il will be perceived that the revenue from the last fiscal year exceeded by $797,070 96, ihe estimates of the Secretary of the Treasury in his last annual report; and that ihe aggregate receipts during the same peiiod from customs, lands and miscellaneous sources; also exceeded the esti mates by the sum of 8536,750 76; indicating however a very near approach in the estimate to the actual result The expenditures during ihe fiscal year ending on the thirtieth of June last, including those for ihe war and exclusive of payment of principle and interest ol the public debt, was $12,811, 970 3. It is estimated that the receipts into the treasu ry for the fiscal year ending on the 30th of June 1849, including the balance in the treasury, on the first of July last will amount to the sum of f 57.040,969 90; of which twelve millions, ilis estimated, will be derived from customs, ihrce millions from the sales of public lands and one million two hundred thousand from miscellaneous and incidental sources, including the premium on ilia loans, and the amount paid, and lo be paid in to the treasury on account ol military conlrihu tions in Mexico, and the sales of arms and vessels and oilier public properly, rendered unnecessary to the uovernment ry the termination of the war; and ifv;u,bya,4J5 JO, from loans already nego listed, including the treasury notes funded, which together with the balance in the treasury on tlx fust of July lasl, makes ihe sum estimated. 1 he expenditures for the same period, inclu ding the necessary payment on account of ihe principle and interest of the public debt, and the principal and interest of the first instalment due to Mexico on the 30th May next, and other expenditures growing out of the war, to be paid during the present year, will amount (including ilia reimbursement ol their treasury notes) lo the sum of $54,195 275 07, leaving nn estimated balance in the treasury on Ihe first of July, 1849, of $285,391 81. llie secretary ol the treasury will present as soon as required by law,, ihe estimates of the The expenditures, as estimated, for the receipts and expenditures for Ihe next fiscal year. year, amount to j y y , I us is; lor llie interest on the public debt, and 13,000,540 dollars for the principal and interest due Mexico, on the 3lst of $,Uy, 1850; leaving the sum of $25,874,0a0 35;, which, ilis believed, will be ample for the rHm.r ,.n.n,i;i.. The operations of the Tariff act of 1816 have been su.h, during the past year, as fully to meet the public expenditures, and lo confirm the opin ion heretofore expiessed on tho wisdom of the change in our Revenue system, which was effec ted by that act. The receipts under il into the Treasury for the first fiscal year after its enact merit, exceed by the sum of $5,844,403 09, the amount collected during the last fiscal year, un der the Tariff act of 1842, ending 30ih June, 1846. The total revenue realized from the com. mencemcnt of the operation, on the 1st of De. ceniber, 1816, uniil the close of the last quartet, on the 30th of September lasl, being twenty-two months, was $56,651,563 75; being a much lar ger sum than was ever before received from duties during any equal period, under the action of high ly protective and prohibiting duties. Ihe reve nue has been increased; the taxes on the people have been diminished. Ihey have been relieved irom ine neavy amounts wnn which ihry were burdened under former laws, in the form of in creased prices or bounties paid lo favored classes and puisuits. The predictions that were made (hat the tariff act of 1815 would reduce Ihe amount of rev enue below that collected under the act of '42, end wholly prostrate their industry and business and destroy the prosperity of, the country, have not been verefied. With an increased and in creasing revenue, the finances are in a highly flourishing condition. - Agriculture, commerce and navigation are prosperous, and the prices of manufactured fabrics, and ol other products, are much less injuriously alluded than was to have been anticipated, from the unprecedented revul sions which, during the last and present year have overwhelmed the industry and paralized the credit and commerce of so many enlightened nations of Europe. -t Severe commercial revulsions abroad have al ways heretofore operated to depress, and often to affect disastrously, almost every branch of Ameri can industry. The temporary depression of portion of our manufacturing interests is the effect of foreign causes, and is far less severe than has prevailed on all former similar occasions. It is believed, that, looking lo ihe great aggregate of all our interests, the whole country was never more prosperous than at the present period, and never more advanced in wealth and population. Neither the foreign war in which we have been involved, nor the loant which have been brought over so large a portion of our capital, nor4' the commercial revulsion in Gieat Britain tn 1847, nor the paralysis and commerce throughout Eu rope in 1818, have" affected injuriously, to any considerable extent, any of the great interests of the country, or arresled our onward march lo greatness, wealth and power. Had the disturbances in Europe not occurred, our commarce would undoubtedly have been still more extended, and would have added still more to the national wealth and public prosperity. out, notwithstanding Iheae disturbances, the oper alions of the revenue system, as established by the tariff ol '46, has been generally beneficial lo the Government and business of the country, and no change in its provisions is demanded by .1 l: I ' t 1 m, me puni-y, aim none is recuminenaea. ins op. eraiions of the Constitutional Treasury, eslab lished by the act of 6ih August, 1846, in Ihe re ceipt, custody and disbursement of the public money, have continued to be successful. Under this system, the public finances have carried through the foreign war, involving the necessity of loans, and extraordinary expenditures, and re quiring distant transfer and disbursements, wilh. out embarrassment, and no toss has occurred of any of the public money deposited under its pro visions. Whilst it hns proved to be safe and useful to the Government, its effects have been most beneficial in the country. Il has hastened powerfully lo secure an exemption from that in flation and fluctuating of ihe paper currency, so injurious lo domestic industry, and indeed so un certain in the rewards of labor, and is believed to have largely contribuled to preserve the whole country from a commercial convulsion, such as. often occurs under the bank deposit system. In the year 1847 there was a revuWon in ihe busi ness of Great Britain, of great extent and inten sily, which was followed by failures in that king dom unprecedented in number and amount of losses. This is believed lo be ihe first instance when such disastrous bankruptcies, occurring in a country wilh which we have such extensive trade and intercourse, in which we were hut little affected in our money market, and our business and industry were still prosperous and 'progress ive. During the present year, nearly the whole con tinenl of Europe has been convulsed by civil war and revolutions, attended by numerous bankrupt cies, and by an unprecedented fall in their secu ri lies, and an almost universal paralysis of com. meice and industry, and although our Hade and prices of our products, must have been somewhat unfavorably affected by llicse causes, we have es caped a revulsion; our money market is compare lively easy, and puoiic and private credit have ad vanced and improved. It is confidently believed, that we have been saved from these effects by ihe salutary operations of the Constitutional Treasury. It is certain, that if the twenty-four millions of specie, imported into the country during ihe fiscal year ending on (he 30ib of June, J S 17, had gone inlo the banks as to a great extent il must have done, it would, in the absence of ihe system, have been mode the basis of augmented bank paper, issued probably lo an amount not less than sixty or seventy mil lions of dollars, producing, as an inevitable con sequence of an inflated currency. exiravagBnl prices for a time, and wild speculation, which must have been followed, on the reflux of Europe the succeeding year, of so much of that specie, by the prostration of the business of the country, the suspension of the bonks, and most extensive bankruptcies. Occurring as this would have done at a peiiod when considerable loans of specie were required for disbursements, and when the banks, the fiscal agents of the Government and the depositories of its monies, would be suspen ded, the public credit must have sunk, and many millions of dollars, as was the case during the war of 1812, must havo been sacrificed, in dis counts upon loans, and upon the depreciated pa per currency which ihe Government would have beon compelled lo use. Under the operations of a constitutional Treas ury, not a dollar has been lost by ihe deprecia lion of ihe currency. The loans renuirrd to nros ecute the war were negotiated by the Secretary of the Treasury ahove par, and realizing a large premium to ine uovernment, The restraining . rt . .(.! .. . .1 . . W eiieci ui ina system upon tne tendencies lo excess ive paper issue by the banks, has saved the Gov eminent Irom heavy losses, and thousands of our business men fiom bankruptcy and ruin. The system has been tested by the experience of llie last two years, and is the dictate of sound policy that it should remain undisturbed. The modifi cations of ihe details f this measure, involving ihe principles heretofore recommended, are a pain presented for your favorable consideration. In my message of the bih July lasl. transmit. ting lo Congress the ratified treaty of peace wilh Mexico, I recommend the adoption of measures for the speedy payment of the nublio debt. In submitting tho recommerjdniion, I refericd you to the consideration presented in that message, inms support. The public debt including that author ized to be negotiated in pursuance of existing laws, and including I reasury notes, amounted at ihnl time lo $65,778,450 41. funded stock of the United Slates, amounting lo about half a million of dollars, has been pur chased, es authorized by law, since that period and the public debt has thus been reduced, the details of which will be presented in the report of the decretory of the 1 reasury. 'm Ihe estimate of expcnditnrea lor tha next us cat veer, presented by ihe Secretary of the Treas ury, it is believed, will be ample lor all necessaiy purposes. If the appropriation made by Congress shall not exceed ihe amount estimated, the means in the Treasury will be sufficient to defray all the expenses of the Government; (0 pay ofT the next instalment of $3,000,000, lo Mexico, which fall due un the 30ih of May next, and still a con siderable surplus will remain, which should be applied lo further purchases of the public slock and reduction or ihe debt. - bhould other appro prlations be made, the necessary consequence wil be, lo postpone the payment of the debt. Though our debt as compared wilh thai or most other na tions in the world, is small, it is our true policy and in harmony with the nature of our inst'tutions, that wo should present to the world the rare spec table or a great Republic, possessing vast resour ces and wealth, wholly exempt from indebted ness; and it would add still more to our strength, and give lo us a still more commanding position among the nations ol ihe earth. The publio expenses should be economical, and be confined to such objects es are clearly within the power of Congress. All such as are not absolutely demanded, should be postponed. The payment of the public debt at the earliest pracli cable period, should be a cardinal principle of our puouc policy. For the reason assigned in my last Annual Message, 1 repeat my recommendation, that branch of the mint of the Uniled Stales be eslab lished al the City of New York. The importance j) I this measure is greatly increased by the acqui anion ol the mines of precious metals in JNew Mexico and Lahlornia, especially the latter I repeat the recommendation heretofore made in favor of the graduation, end reduction in price ol such of the public lands, as save been long offered in the market, and have remained unsold and in faVor of extending the rights tf pre emption to actual settlers, on the unsurveyed, as well as surveyed lands. - f The condition and operations of tne army, and the state ol the other branches under the super vision of (he War Department, are satisfactorily presented in (lie accompanying reports of the see relary ol war. - On Ihe return of peace, our forces were with drawn from Mexico, and the volunteers and that portion of the regular army engaged for tho war, were discharged. Orders have been issued foi stationing the forces of our permanent establish ment at various points in our extended country where troops may be required. Owing lo the remoteness ol some ol their positions, the detach men Is have not yet reached their destination Notwithstanding the limits of our country, end the new territories, it is confidently believed, that our present military establishment is sufficient for all exigencies, so long as our peaceful relations remain undisturbed. Of the amount of military contributions collect ed in' Mexico, the sum of $769,650 was applied toward the payment of the fiist instalment due under the treaty of Mexico. The further sum of 346,369 30 dollers, has been paid inlo ihe treas. ury. An unci penned Dalance still remains in the hands of disbursing officers, and these are engaged in the collecliou of those moneys. Alter the proclamation of peace, no farther disburse ments were made of any unexpended moneys arising Irom this source. Ihe balance on hand were directed to be paid inlo the Treasury, and ihe individual claims will remain unadjusted until Congress shall authorise their settlement and pay ment. ineso claims are not considerable number or in amount. I recommend for your favorable consideration, the suggestion of the Secretary of War and the Secretary of ihe Navy in regaid to the legislation on this subject. Our Indian relations are presented in a most able re view in a report from the War Department. The wisdom of our policy in regard to the tribes with in our limits, is clearly manifested by their im proved and rapidly improving condition. A most : . . , ... ., , , , important treaty wun ine xwenominees lias open recently negotiated by the Commissioner of Indian Attairs in person, by which all their land in lb State of Wisconsin, being over four millions of acres, has Deen ceeded to the United States. Ihe treaty w'll be submitted lo the Senate for their rat ificalion, at an early period of your session. Within the last 4 years, eight important treaties have been negotiated wilh different tribes; and at a cost of 1,842,000 dollars, Indian lands to the amount of more 8,500,000 acres have been ceded to the United States, and provision has been made lor sealing in the country west of the Mississippi the tribes which occupied this large extent of do mam. The title to all the Indian lands within the several Slates of our Union, wilh the except. ion oi a lew small reservations, is now extin guished, and a vast region opened for settlement i ..!,:..,: ail" kv I ii vaiiuil The accompanying report of the Secretary of the JNavy gives a satilaclory exhibit of the ope rations ol that branch ol the public service. A number of small vessels suitable fur enter- ing the mouths of rivers were judiciously pur chased during ihe war, and gave great efficiency to the squadron in the Gulf of Mexico. On the return of peace, when no longer suitable for Naval purposes, end liable to constant deleriora tion, they were sold and the money placed in the treasury. The number of men in the Naval service, bus ihorized by law 'during the war. has been re duced by discharges below the maximum fixed for the peace establishment. Adequate sound rons are maintained in several quarters of the gioue wnere experience has shown their service may be most usefully employed, and the naval service was never in a condition of higher uincipiiiie or greater einciency. I invite attention to the recommendation of the Secretary of Ihe Navy, on ihe subject of the Ma rine Corps. Tho reduction of the corps al the end of (he war, required that four officers of the three lower grades should be dropped from the roil, a ooard ol oilicers made the selection, and those designated were necessarily dismissed, but without any alleged fault. I concur in the opinion with Ihe Secretary, that ihe service would be improved by reducing (he number of landsmen and increasing the marines. Such measure would justify an increase of ihe number ol oilicers to the extent or tha reduction bv j: : 1 l .!li .1 ii , . ' inoininoBi, biiu sun me corps would nave lewer officeis than a corresponding number of men in ihe army. The contracts for ihe transmission of the mail in Heamshipa, converted inlo war steamers, promises to realize all ihe benefits lo our com' merce aud to the navy, which were anticipated. The first steamer Ihus secured was launched in January, 1818. There are now seven, and in another year there will probably be no less than seventeen afloat. While this great .national advantage is secured, our civil communication and intercourse are increased end piomoted with Germany, Great Britain end other pans of Europe wilh all the countries of the wrsi coast of our continent -and especially with Oregon and California, between the northern and south ern sections of the wtst. Considerable revenue may be expected from postage; but llie connected line from Ohagnea and thence across the isthmus lo Oregon cannot fail to exert a most beneficial influence not now lo be estimated, In the inter course of the manufactures, commerce, naviga tion and currency of the United Slates. As on important part of the system, I race mmend to your favorable consideration the establishment ol ihe proposed line of steamers between New Orleans and Vera Cruz. ' Il promises the most happy lesults in cementing friendship between the two Republics, and in extending reciprocal advantages lo the trade and manufactures of boih Ihe repurt ol the lostmesler beneral will make known lo you the operations of the depart ment for the past year. It is gratifying lo find tho revenues of the De partmenl under the rates of postage now eslab lished by law, so rapidly increasing. The gross amount of postage during the last fiscal yeai amount to $4,371,077, exceeding the annual average receipts for the nine years immrdiately proceeding ihe passage of (he set of the 3d ol March, 1845, by (he sum of $16,453, and excee ding ihe amount received the year ending the 30th or June, 1S47, by the sum or $425,184. The expenditures for the year, excluding the sum of $4,672 allowed by Congress, at its list session, to individual claimants, and including the sum of $100,500, paid for the services of a line of steamers between Bremen and New York, amounted to $4,198,845, which Is less than the average for ihe nine years previous to the act of 184U, by $yuu,743. The mail routes on the 30th day of June last, were 101,208 miles in extent being an increase during the last year of' nine thousand three hun dred and ninety miles. Tho mails were trans ported over thern during the same term 41.012, 579 miles, making an increase of trsnsporiation for the yeer of 2,124,680 miles, whilst (he cx-- pense was less than that or Ilia provious year by four thousand two hundred and thirty-five dollars. The increase in the mail transportation within the last three years has been 5,P73.10 miles, whilst Ihe expenses were reduced $156,737 ma kins an increiseof service at the rote of 15 par cent. During the past year there have been employed in contracts with the Post Office Deportment, two ocean steamers, in conveying the mails monthly between New York and Bremen; end one, since October last, performing semi-monthly service between Charleston and Havana. A contract has been made for the transmission of the Pacific mails across the isthmus, from Cha pros to Panama. Under the authority given to ihe Secretary of the Navy, three ocean steamers have been constructed and sent to the pacific, and are expected to enter upon the mail service be tween Panama and Oregon, and the intermediate points, on the first of Januaiy, of next year; and a fourth has been engaged by him, for the service between Havana and Cliogres, so that a regular mail line will be kept up, after that time, between the United Stales and our territories on the Pacific. ' Notwithstanding the great increase in Ihe mail fernL-p, miijuiu im revenue continue to increase the present year, a it did the Jast, there will be received near AloO.tlOO more than the rxnenspi These consideration! have satisfied the Postmaster Genpral that with certain modifications ul' the act or IH-lo, the revenue may be still further increased and a reduction of postage made to a uniform rate of five cents, without any interference with the principle which has been constant Iv nnd nron erly enforced, of making that Department sustain usen. A well digested postage system is the be means of diffusing intelligtince among the peoplc: and is of so much importance in a country sc extended as this of Ihe United Slates, that "I re commend to your favorable consideration, the sue uvMiuiia in me lustmnsier uenerai, lur its im provement. Nothing can retard tho onward progress of nur country, anil prevpnt us from assuming and main taining the first position among nations, but a dis regara or tne experience ol the past. The introduction of a new policy was for time favored by Ihe condition ol the country, by the heavy debts which had been contracted during uiu nur.uy tne uepressiun or tne pilDHC credit, by trio uerangea state oi me nnances ond the curren cy.and by Ihe commercial and pecuniary embar rassment which extensively prevailed. These were not the only causes which led to its estnblih ment: the even'.s of the war with Great Britain l.L-l ... . . ... iiiiu tne eniDorrnssments wnicn had attended its prosecution, hod left on the minds of manv of our statesmen the impression that our government was nut strong cnougn, ana that, to work its resources successfully in great emergencies, and especially in war, more power snouid be concentrated into his hands. This increased power, they did not seen to ODtain by ine legitimate and prescribed mode an amendment of the constitution but by construction. They saw governments in the old world was based upon different orders of society and so constituted as to throw the whole power of notions into the nanus or a tew, who (axed, un ...nj . . . ..... cuiiiroiieu, tne many, wiinnui responsibility or re striction. In that arrangement, lliuy conceived tho strength of nations, in war, consisted. There wns, also, something fascinating in this luxury and display of tlm higher orders, wJiodrew their weol'h from the toil of the laboring million". Tho outhnrs of the system drew their ideas of their political econi my, from what they had witnessed in Europe, and particularly in ureat Britain. They had viewed the enormous wealth concentre ted in a few hands, and had seen the splendor of the overgrown establishments of an aristocracy which was upheld by the restrictive policy. They forgot to look down upon the poorer classes of the bnglish population, whose luilv and hourly lubor in the great establishments they so much admired and was sustained and supported. They failed to perceive that the scanty led and hair clad opera lives were not only in abject poverty, but were bound in chains nf oppressive servitude, for Ihe benefit of Ihe fuvored classes the exclusive ob jects of the care of government. It wns not possible to reconstruct society in the unitPd b.atcs upon the European plan. There was a written constitution by which orders and titles were not recognized or tolerated. A system of measures was devised, calculated it not intended. to withdraw power gradually and silently from the States and the moss of tho people, and. by con struction, to approximate our government to the Etirnpenn models, and instituting an aris'.ocracv of weaiui iur mai ui urut-rs anu lines. I.L & . .(.. P 1. Without reflect ing upon the dissimilarity of our instn utions, ana tit t lie condition or our people, and those of Europe, ihey conceived the vuin iilen of building up in tho United Status a system simi lar lo that which Ihey admired abroad. Urent Britain hod a National Bank, with a large coDiml. in whoe hands was concentrated the monetorv and financial power of the nation: an institution wil. ding almost kingly power, and exerting vast influ ence upon all the operations of trade, and upon the policy or the Government itself. Great Ilrituin had an enormous public debt, and it had become a part of her publfc policy to rf-L'ard this a a "nn. tional blessing." Great Brilajn had a contracted policy, which placed fuller and burdens upon trade, and trammelled the nroductive industry of the mnss of the nation. Rv her combinH.1 svinm uf policy, tho landlord and other property holilers were enriched, by thr enormous taxes which were levied upon the labor of tha country, fur thoir ad vantage. Imitating this foreign policy, the first sicp to- svanls estiibliihing the new system, was the erec tiorrpf a National Bank. Not forseeing Ihe disas trous power nnd countless evils which such an in stitution might entail on t!io country, nor perceiv ing llie connection which it was designed to fbrm Ix-lwcen llie bank and the other branches of tha iniscullud "American sysloin," but feeling the em bnrrnssmenu of the Treasury, and of the business of the country, consequent upon the war, some of our statesmen who had held different and sounder viows, were Induced to yield meir scrupius, ano, indued, settled con victions uf the unconstitution ality, snd to givo it their sanction, ss an expedient which they vainly hoped migli produce renoi. it was a nio-l unfortunate error, as the subsequent history snd final catastrophe of the dangerous and corrupt instituli on, hnvo abundantly proven. The Bank and its numerous branclie", ramified into I ho ' Slates, sunn brought many of t'.ic active politicians and influential men. in different sections or the nuiitry, into the relation of debtor to il, snd de pendant upon pecuniary favors; thus diffusing through the moss of mcio'.y a great number of in dividuals, of power and influence, to give tone to public opinion, and to act in concert in cases of emergency. The corrup' power of such a politi cal engine is no longer a matter of speculation, ha ving been displayed in numerous instances, but most signally in the political struggle of ld32-';t-'4, in opposition to i lie public will, represented by a fearless and patriotic President. But .lie Bank was but one branch of of this new system. A publio debt of more than $120,000,000 existed, and it is tiot to be disguised that msny of the authors of the new system did not regard its speedy payment as es-eflliol to the the public pros perity, but looked upon its continuance as no nation al evil. Whilst tha debt existed, it furnished a limit to the National Bunk, and rendered increased taxa tion necessary, to the amount of interest, exceed ing seven millions of dollars annually. The next branch of the new system was a high pcotcctive tariff. This was to afford bounties to favored clauses and particular pursuits, at the ex pense ol all others. A proposition to tax the whole people for Ihe purpose of enriching a few, was too monstrous to be openly made. The scheme was therefore veiled under the plausible but de lusive pretext, of a measu re to protect home indus try, and many of our people were, for a lime, led to believe t hat a lax which, in the main, fell upon labor, was for the benefit of the laborer who paid it. This branch of the system involves a partner ship between the Government and the favored classes. The former receiving the proceeds of the tax imposed on articles imported, and Ihe latter the incre ased price of similar articles produced at home, caused by such lax." , Another branch of this system wes a compre hensive scheme of internal improvements, capable of indefinite enlargement, and sufficient to swal low up as many millions, annually, a could be ex acted from the forcigu commerce of the country. This was a convenient and necessary adjunct of the Prut eel ive Tariff. It was to be the great ab sorber of any surplus which might, at any timo, accumulate in the Treasury, and of the taxes lev ied on the people, not for necessary revenue, but for the avowed object of ofl'ordirg protection to tho favored closes. Auxill iary to the same end. if it. was not an es sential part of the system itself, was a scheme, which, at a later period, obtained, for distributing the proceeds of (he sales of the public lanils among the States. Other expedients were devised to toko the money out of the treasury, and to prevent its coming from any olhur source l lion a protective tariff. The au thors and su ppurtcrs of the system were the advo cates of the largest expenditures whether for ne cessary or useful purposes, was not material, be cause the larger the expenditure tbe greater was the pretext for high taxes, in the form of protective duties. Those severs! measures were sustained by popu ler names and plausible arguments, by which thou sands were deluded. The bank was represented tu be an independent fisc al agent, for the govern ment was to equalize exchanges, and lo regulate and furnish a sound currency, always and every where of uniform value. The "protective tariff" was lo give employ ment to "American labor" at advanced prices was to protect "home industry," and furnish a steady market for the farmer. Inter nal improvements were to bring roads to every neighborhood, and enhance the value of eveiy man's property. The distribution of the publio money was to enrich the States finish their pub lic works, plant schools throughout their publio borders, and relieve Ihem from taxation; but the fuc. that for every dollar taken out of the treasury fir these objects, a much larger sum was trans ferred from the pockets of the people to the favored classes, was continually concealed, as was slso the tendency, if not the ultimate design of the sys tem, to build up on aristocracy of wealth, to control the musses of society, and monopolize the political power of the country. The several branches of this system were so intimately blended tugelher in their operations, each sustained and strengthen ed ihe other. Their joint operations was to add new burdens of taxation, and to encourage a largely increasing and wasteful expenditure of public money. It was the interest of the Bank that the revenue collected, nnd di.-bursements made by the government, should be large; because, basing the repository of the public money, the greuter would he the bank profits by its use. It was Ihe interest of ihe favored classes, who were enriched, to have the rates of that protection as high as possible; for the higher these rates, the greater would be their advantages. It was the interest of all lliese persons and local ities, who expected to be benefitted by expenditures for internal improvements, that the amount collect ed should be as large as possible so that the sum disbursed might also be the larger. The Stales being the beneficiaries in Ihe distribution of the land, many had an interest in tho rates proposed by a protective Toriff. That they should be large enough to yield sufficient revenue from that source to meet the wants of Government, without disturb ing the Land funds; so that each of the branches constituting the system, had a common interest in swuiing the public expenditures. They had tbe direct interest in maintaining the nublio debt nn. paid, and increasing its amount, because this would produce an annually increased drain upon the treas ury, to the amount of the interest, and render aug mented taxes necessary. The operation and neces sary effect of the whole system, were, tu encour. age large and cxlruvagant expenditures, and there by increase the public patronage, and maintain a rich ond expensive Governnien'. at the exnense of a taxed and impoverished people. ii is iiiuniiusi mat mis scnenie ot enlarged taxa tion and expenditures, find it continued to nrnvail. must soon liavo converted the Government of the Union intended bv it framers la Im nluin. cheap and simple confederation of States, united togeiner lor common protection, and charged wilh s few specific duties relating chiefly to our foreign affairs, into a consolidated emniro. denrivinff tha Slates of their reserved rights and the people of their just potver and control in the administration of their gove-nincnt. In this manner tho whole form and character of the government 'would be changed, not by an amendment of the constitution, but by resorting to an unwarrantable and unauthor ized const ruction of that instrument. I he indirect mode of levying the (axes by a duty on imports prevented the mass of the people from readily perceiving llie amount they pay, ond lias enabled the few wiio are thus enriched nnd who seek to ' yield the political power of the country lo deceivo ond delude them. Were tho taxes o direct luvy upon the people, as is the case in Ihe Slates, this could not occur. I ho whole system was resisted from Hi inception, by manv of our ablest statesmen. and some of whom doubled il constitu tionality and expediency, whilo others be lieved it was, in all iis branches, s flagrant and dangerous infraction of tho constitu tion.