tion in price in many articles therein included, chiefly in consequence of the settlement of America, and the introduction of her products into general commerce, it has become quite inapplicable.

It is presumed to have been the intention of the framers of that tariff to fix a duty of about one per centum ad valorem upon the articles therein enumerated, but the change in value of many of those commodities, and the absence of any corresponding change in the duty, has, in many instances, increased the ad valorem from one per centum to three, four, and even seven; and this, generally, upon those articles which form the chief exports of the United States, of South America, and the West India Islands: such as the articles of cotton, rice, raw sugar, tobacco, rum, Campeachy wood, &c.

On all articles not enumerated in this ancient tariff it is stipulated by the treaty of 1701, that the "privileged nations," or those who have treaties with Denmark, shall pay an ad valorem of one per cent; but the value of these articles being fixed by some rules known only to the Danish Government, or at least unknown to us, this duty appears uncertain and fluctuating, and its estimate is very much left to the arbitrary discretion of the custom-house officers at Elsinore.

It has been, by some of the public writers in Denmark, contended that goods of privileged nations, carried in the vessels of unprivileged nations, should not be entitled to the limitation of one per centum ad valorem, but should be taxed one and a quarter per centum, the amount levied on the goods of unprivileged nations; and, also, that this limitation should be confined to the direct trade, so that vessels coming from or bound to the ports of a nation not in treaty with Denmark should pay on their cargoes the additional quarter per cent.

These questions, although the former is not of so much consequence to us, who are our own carriers, are still, in connexion with each other, of sufficient importance to render a decision upon them, and a final understanding, extremely desirable.

These Sound-dues are, moreover, in addition to the port charges of lightmoney, pass-money, &c., which are quite equal to the rates charged at other places, and the payment of which, together with the Sound-dues, often causes to vessels considerable delay at Elsinore.

The port charges, which are usual among all nations, to whose ports vessels resort, are unobjectionable, except that, in this case, they are mere consequences of the imposition of the Sound-dues, following, necessarily, upon the compulsory delay at Elsinore, of vessels bound up and down the Sound with cargoes, with no intention of making any importation into any port of Denmark, and having no other occasion for delay at Elsinore, than that which arises from the necessity of paying the Sound-dues, and in so doing, involuntarily subjecting themselves to these other demands.

These port-duties, would appear to have some reason in them, because of the equivalent; while, in fact, they are made requisite, with the exception, perhaps, of the expense of lights, by the delay necessary for the payment of the Sound-dues.

The amount of our commerce with Denmark, direct, is inconsiderable, compared with that of our transactions with Russia, Sweden, and the ports of Prussia, and the Germanic Association on the Baltic; but the sum annually paid to that Government in Sound-dues, and the consequent port

charges by our vessels alone, is estimated at something over one hundred thousand dollars.

The greater proportion of this amount is paid by the articles of cotton, sugar, tobacco, and rice; the first and last of these paying a duty of about three per cent. ad valorem, reckoning their value at the places whence they come.

By a list published at Elsinore, in 1840, it appears that between April and November of that year, seventy-two American vessels, comparatively a small number, lowered their topsails before the castle of Cronberg. These were all bound up the Sound to ports on the Baltic, with cargoes, composed in part of the above named products, upon which alone, according to the tariff, was paid a sum exceeding forty thousand dollars for these dues.

Having disposed of these cargoes, they returned laden with the usual productions of the countries on the Baltic, on which, in like manner, were paid duties on going out through the Sound, again acknowledging the tribute by an inconvenient and sometimes hazardous ceremony.

The whole amount thus paid within a period of eight months on inward and outward bound cargoes, by vessels of the United States, none of which were bound for, or intended to stop at, any port in Denmark, except compulsorily at Elsinore, for the purpose of complying with these exactions, must have exceeded the large sum above named.

I have, therefore, thought proper to bring this subject before you at this time, and to go into these general statements in relation to it, which might be carried more into detail, and substantiated by documents now at the Department, to the end that, if you should deem it expedient, instructions may be given to the representative of the United States at Denmark, to enter into friendly negotiations with that Government, with a view of securing to the commerce of the United States, a full participation in any reduction of these duties, or the benefits resulting from any new arrangements respecting them which may be granted to the commerce of other States.

The other subject which, in the opinion of the Secretary, demands the early consideration of the Government, is the Germanic Association or Customs Union, established in Germany, and now in successful operation under the leading auspices of the Government of Prussia. This important association has for its objects, the union of many of the German States into one body, for the purpose of establishing uniform regulations of commerce; uniform duties of importation, exportation, and transit; a system of uniform weights and measures, and a uniform coinage throughout all the members of the association; objects resembling, as will be perceived, important purposes contemplated by the establishment of the General Government of the United States.

In all these States of the association the greatest variety and diversity had previously existed. Each had its own circle of custom-houses, and its peculiar system of duties, constituting them in these respects foreign countries to one another. The effect of these diversities upon trade and manufactures may easily be supposed to have been highly prejudicial to the general commerce of the country.

To Prussia, who had labored for years to bring about this commercial revolution in Germany, chiefly belongs the credit of its accomplishment. She has united the members of the confederation in a treaty which estab

lishes one tariff for all, the duties to be collected on the frontiers of what now forms one great commercial league. The net revenues arising from the duties are divided among the several States in proportion to their respective amounts of population, every article, salt and playing cards excepted, having once paid the duties on the frontier, being permitted to circulate freely among all the States of the Union without any additional impost.

The treaty was concluded in 1834, and was to continue in force until the 1st of January, 1842, and if, during that term, and at latest two years before its expiration, the contrary should not be declared, for twelve years more and afterwards, from twelve years to twelve years it has recently, under these provisions, been renewed for another term of twelve years. The effect of this confederation has probably been to give to Prussia and Germany a new weight in the political balance of Europe; but it is principally interesting to the United States, in its commercial tendencies, and in the hopes which it encourages, of furnishing an enlarged consumption of some. of the staple articles of our production, such as cotton, tobacco, and rice. The German Commercial and Customs Association comprises an ample territory abounding in wealth, industry, population, and resources of every description. The States included in it are, the

It is understood that Brunswick has exhibited an inclination to separate from the Northwestern Union, of which she is now a member, and to join the association, and the accession of the Grand Duchy of Luxemburg is likely soon to swell still higher the total population of the States thus united, which constitutes already the most industrious, enlightened, and prosperous people of Germany.

Three of the German States have not yet acceded to the association, but have formed a separate Commercial and Customs Union, viz :,

And a few of the States of Germany have neither acceded to the association, nor formed any special union among themselves-these are,

States.

The Duchies of Holstein and Lunenburg (belonging to the

King of Denmark)

The Grand Duchy of Mecklenburg Schwerin
The Grand Duchy of Mecklenburg Strelitz -

Population.

471,276

482,925

89,528

The Hanseatic cities of Lubeck, Hamburg and Bremen

245,500

Total

1,289,229

In the accomplishment of her great political object, Prussia has been compelled to make considerable pecuniary sacrifices, her revenues from the customs being less than before the formation of the association; though this falling off has been gradually lessening, owing to the increased population and prosperity of the Kingdom. The attempts made to adjust and compensate this loss have not been successful; but it is believed that the difficulty will be removed by allowing Prussia to levy, for her own exclusive benefit, the transit duties on cotton and other commodities without any material change in the general system.

The nett revenues of the association have increased from about 12,000,000 thalers, collected in 1834, the year of its first establishment, to upwards of 20,000,000, the present amount, exclusive of the expense of collection, amounting to 12 per cent-a prodigious increase, and mainly owing to the rapidly-increasing prosperity and consequently augmented consumption of the German States associated in the League.

With Hanover the United States has recently concluded a treaty of commerce and navigation, through the agency of Mr. Wheaton, minister of the United States at Berlin, which has been ratified. This treaty differs from our commercial treaties with Prussia, the Hanseatic towns, and Denmark, by confining the indirect trade to the productions of the kingdom of Hanover, and of any other country of the confederation on the one side; and on the other, to the productions of the United States and of the South American continent and West India islands. It gives us the right of carrying to Hanover in our vessels the productions of the United States, and of the North and South American continent and islands, in exchange for their right of bringing in Hanoverian vessels to the United States the productions of Hanover, and the countries composing the confederation, and may be regarded as favorable to our navigation.

Several States of the League have manifested dispositions to form treaties with the United States upon a similar basis; but it is not intended, on this occasion to express any opinion upon the policy of establishing the principle of entire reciprocity in commercial treaties with the minor States of Europe.

One of the advantages already acquired by the negotiations of our minister at Berlin, is a considerable reduction of the duties on rice, which, under a resolution of the House of Representatives of 11th June, 1838, he was instructed to endeavor to procure. This important object has been gained, and the consequences as foreseen were immediately beneficial to all parties. A great increase in the importation of Carolina rice, which took place as soon as the reduction of duty on the article became known, was followed by a correspondent increase of revenue drawn from its increased consumption in Germany. The success of this experiment en

courages the belief that a like course in respect to other important staples would be followed by similar results.

The tobacco duties, however, serving as they do the two-fold purpose of raising revenue and of protecting the culture of the tobacco of native growth in Germany, still find formidable obstacles in the way of their remoral or modification. The state of the negotiations on this subject up to the session of 1839 and 1840, is sufficiently explained in the correspondence transmitted to the House of Representatives with the President's message of the 14th of April, 1840.

Several of the States of the Germanic Association have no natural outTheir commerce, therefore, is carried on through rivers, the mouths of which open to the ocean in the territories of other Powers. This shows the importance of the union to all the States composing it; but as the union itself is not a Government, commercial stipulations and conventions must be made with the States of the Union in their political capacities. By a paper annexed, marked A, it will appear that, in March last, Great Britain entered into a convention of commerce and navigation with Prussia, Bavaria, Saxony, Wurtemburg, Baden, the Electorate of Hesse, the Grand Duchy of Hesse, the States forming the customs and commercial union of Thuringia, Nassau, and Frankfort; and similar arrangements with these States might probably be accomplished by the Government of the United States.

Such being the general nature of the association, and 'such our commercial intercourse with it, it becomes matter of interest to consider how far our relations with its several members might be beneficially extended, and if it be thought advisable to enter into commercial treaties with them or any of them, it will remain to be determined whether powers for such a purpose should be conferred upon the minister of the United States at Berlin, or some other diplomatic agency adopted; the general object being to seek the means of enlarging the consumption of the staples of the United States in Germany, and of securing all practicable benefit to their navigation.

There is another part of the subject of our connexion with Germany, which, though of less consequence than those that have been pointed out, is nevertheless one which deeply concerns the numerous German emigrants who are constantly selling their property to proceed to the United States, as well as our naturalized citizens, natives of Germany, inheriting property in that country. Throughout Germany the droit d'aubaine and the droit de detraction exist in the shape of a tax, payable on the withdrawal from the country of personal property which has been inherited by will or succession, or which forms the proceeds of real property inherited in the same manner. In the United States, as all know, no such tax exists.

It is probable that an exemption from this tax might be obtained on the ground of reciprocity. Some of the States have intimated their willingness to enter into arrangements for that purpose. If there should be thought to be no other reason for a formal convention, this particular object might be effected by a simple official declaration, signed by the Secretary of State, under the seal of the Department, certifying that the subjects and citizens of Germany enjoy this immunity in the United States; upon which there is reason to believe that an alteration in their own laws would be made by the States, or some of them, so as to make the right reciprocal. The form