and final adjustment, which, how ever, have not proved heretofore acceptable to it. Our Minister at London has, under instructions, again brought the subject to the consideration of the Government; and while nothing will be done to compromise the rights or honour of the United States, every proper expedient will be resorted to in order to bring the negotiation now in progress of resumption to a speedy and happy termination. In the meantime it is proper to remark, that many of our citizens are either already established in the territory, or are on their way thither for the purpose of forming permanent settlements, while others are preparing to follow; and in view of these facts, I must repeat the recommendation contained in previous messages, for the establishment of military posts at such places, on the line of travel as will furnish security and protection to our hardy adventurers against hostile tribes of Indians inhabiting those extensive regions. Our laws should also follow them, so modified as the circumstances of the case may seem to require. Under the influence of our free system of Government, new republics are destined to spring up, at no distant day, on the shores of the Pacific, similar in policy and in feeling to those existing on this side of the Rocky Mountains, and giving a wider and more extensive spread to the principles of civil and religious liberty. I am happy to be able to say, that nothing has occurred to disturb in any degree the relations of amity which exist between the United States and France, Austria, and Russia, as well as with the other powers of Europe, since the adjournment of Congress. Spain has

been agitated with internal convulsions for many years, from the effects of which it is to be hoped she is destined speedily to recover, when, under a more liberal system of commercial policy on her part, our trade with her may again fill its old, and so far as our continental possessions are concerned, its almost forsaken, channels, thereby adding to the mutual prosperity

of the two countries.

"I communicate herewith certain despatches received from our Minister at Mexico, and also a correspondence which has recently occurred between the Envoy from that Republic and the Secretary of State. It must be regarded as not a little extraordinary that the Government of Mexico, in anticipation of a public discussion, which it has been pleased to infer from newspaper publications as likely to take place in Congress, relating to the annexation of Texas to the United States, should have so far anticipated the result of such discussion as to have announced its determination to visit any such anticipated decision by a formal declaration of war against the United States. If designed to prevent Congress from introducing that question, as a fit subject for its calm deliberation and final judgment, the Executive has no doubt that it will entirely fail of its object. The representatives of a brave and patriotic people will suffer no apprehension of future consequences to embarrass them in the course of their proposed deliberation. Nor will the Executive Department of the Governmeut fail, for any such cause, to discharge its whole duty to the country.

The war which has existed for so long a time between Mexico

and Texas has, since the battle of San Jacinto, consisted for the most part of predatory incursions, which, while they have been attended with much of suffering to individuals, and have kept the borders of the two countries in a state of constant alarm, have failed to approach to any definite result. Mexico has fitted out no formidable armament by land or by sea for the subjugation of Texas. Eight years have now elspsed since Texas declared her independence of Mexico, and during that time she has been recognised as a sovereign power by several of the principal civilised states. Mexico, nevertheless, perseveres in her plans of reconquest, and refuses to recognise her independence. The predatory incursions to which I have alluded have been attended, in one instance, with the breaking up of the courts of justice, by the seizing upon the persons of the judges, jury, and the officers of the court, and dragging them, along with unarmed, and therefore non-combatant citizens, into a cruel and oppressive bondage, thus leaving crime to go unpunished, and immorality to pass unreproved. A border warfare is evermore to be deprecated; and over such a war as has long existed between these two States, humanity has had great cause to lament. Nor is such a condition of things to be deplored only because of the individual suffering attendant upon it. The effects are far more extensive. The Creator of the universe has given man the earth for its resting place, and his fruits for his subsistence. Whoever, therefore, shall make the first or any part of it a scene of desolation, affects injuriously his heritage, and it may be regarded

as a general calamity. Wars may sometimes be necessary; but all nations have a common interest in bringing them speedily to a close.

"The United States have an immediate interest in seeing an end put to the state of hostilities existing between Mexico and Texas. They are our neighbours, of the same continent, with whom we are not only desirous of cultivating the relations of amity, but of the most extended commercial intercourse, and to practise all the rights of a neighbourhood hospitality. Our own interests are deeply involved in the matter, since, however neutral may be our course of policy, we cannot hope to escape the effects of a spirit of jealousy on the part of both of the Powers. Nor can this Government be indifferent to the fact that a warfare, such as is waged between those two nations, is calculated to weaken both Powers, and finally to render them, and especially the weaker of the two, the subjects of interference on the part of the stronger and more powerful nations, which, intent only on advancing their own peculiar views, may sooner or later attempt to bring about a compliance with terms, as the condition of their interposition, alike derogatory to the nation granting them, and detrimental to the interests of the United States. We could not be expected quietly to permit any such interference to our disadvantage. Considering that Texas is separated from the United States by a mere geographical line, that her territory, in the opinion of many, formed a portion of the territory of the United States, that it is homogeneous in its population and pursuits with the adjoining states, makes contributions to the

commerce of the world in the same articles with them, and that most of her inhabitants have been citizens of the United States, speak the same language, and live under similar political institutions with ourselves, this Government is Government is bound by every consideration of interest, as well as of sympathy, to see that she shall be left free to act, especially in regard to her domestic affairs, unawed by force, and unrestrained by the policy or views of other countries.

In full view of all these considerations, the Executive has not hesitated to express to the Government of Mexico how deeply it deprecated a continuance of the war, and how anxiously it desired to witness its termination. I cannot but think that it becomes the United States, as the oldest of the American republics, to hold a language to Mexico of an unambiguous character. It is time that this war had ceased. There must be a limit to all wars; and if the parent state, after an eight years' struggle, has failed to reduce to submission a portion of its subjects standing out in revolt against it, and who have not only proclaimed themselves to be independent, but have been recognised as such by other powers, she ought not to expect that other nations will quietly look on, to their obvious injury, upon a protraction of hostilities. These United States threw off their colonial depend. ence, and established independent governments; and Great Britain, after having wasted her energies in the attempt to subdue them for a less period than Mexico has attempted to subjugate Texas, had the wisdom and justice to acknowledge their independence, thereby recognising the obliga

tion which rested on her as one of the family of nations. An example thus set by one of the proudest, as well as the most powerful nations of the earth, it could in no way disparage Mexico to imitate. While, therefore, the Executive would deplore any collision with Mexico, or any disturbance of the friendly relations which exist between the two countries, it cannot permit that Government to control its policy, whatever it may be, towards Texas, but will treat her, as by the recognition of her independence the United States have long since declared they would do, as entirely independent of Mexico. The high obligations of public duty may enforce from the constituted autho rities of the United States a policy, which the course persevered in by Mexico will have mainly contributed to produce; and the Executive, in such a contingency, will with confidence throw itself upon the patriotism of the people, to sustain the Government in its course of action.

Measures of an unusual character have recently been adopted by the Mexican Government, calculated in no small degree to affect the trade of other nations with Mexico, and to operate injuriously to the United States. All foreigners, by the decree of the 23d day of September, and after six months from the day of its promulgation, are forbidden to carry on the business by retail of any goods within the confines of Mexico. Against this decree our Minister has not failed to remonstrate.

In regard to the Indian tribes residing within our jurisdictional limits, the greatest vigilance of the Government has been exerted to preserve them at peace among

themselves, and to inspire them with feelings of confidence in the justice of this Government, and to cultivate friendship with the border inhabitants. This has happily succeeded to a great extent; but it is a subject of regret, that they suffer themselves in some instances to be imposed upon by artful and designing men, and this notwithstanding all the efforts of the Government to prevent it.

The reccipts into the Treasury for the calendar year 1843, exclusive of loans, were little more than 18,000,000 dols.; and the expenditure, exclusive of payments on the public debt, will have been about 23,000,000 dols. By the Act of 1842, a new arrangement of the fiscal year was made, so that it should commence on the 1st day of July in each year. The accounts and estimates for the current fiscal year will show that the loans and Treasury-notes made and issued before the close of the last Congress, to meet the anticipated deficiency, have not been entirely adequate. Although on the 1st of October last there was a balance in the Treasury, in consequence of the provision thus made, of 3,914,082 dols. 77 c., yet the appropriations already made by Congress will absorb that balance, and leave a probable deficiency of 2,000,000 dols., at the close of the present fiscal year. There are outstanding Treasury notes to about the amount of 4,600,000 dols.; and should they be returned upon the Treasury during the fiscal year, they will require provision for their redemption. I do not, however, regard this as probable, since they have obviously entered into the currency of the country, and will continue to form a portion of it, if the system

The delusion incident to an enormous paper circulation, which gave a fictitious value to every thing, and stimulated adventure and speculation to an extravagant extent, has been happily succeeded by the substitution of the precious metals and paper promptly redeemable in specie, and thus false values have disappeared, and a sounder condition of things has been introduced. The transition although intimately connected with the prosperity of the country, has nevertheless been attended with much embarrassment to the Government in its financial concerns. So long as the foreign importers could receive payment for their cargoes in a currency of greatly less value than that in Europe, but fully available here in the purchase of our agricultural productions, their profits being immeasurably augmented by the operation, the shipments were large and the revenues of the Government became superabundant. But the change in the character of the circulation, from a nominal and apparently real value, in the first stages of its existence, to an obviously depreciated value in the second, so that it no longer answered the purposes of exchange or barter, and its ultimate substitution by a sound metallic and paper circulation combined, has

been attended by diminished importations, and a consequent falling off in the revenue. This has induced Congress, from 1837, to resort to the expedient of issuing Treasury-notes, and finally of funding them, in order to supply deficiencies. I cannot, however, withhold the remark, that it is in no way compatible with the dignity of the Government, that a public debt should be created in time of peace, to meet the current expenses of the Government, or that temporary expedients should be resorted to an hour longer than it is possible to avoid them. The Executive can do no more than apply the means which Congress places in its hands for the support of Government; and happily for the good of the country, and for the preservation of its liberties, it possesses no power to levy exactions on the people, or to force from them contributions to the public revenue in any form. It can only recommend such measure as may, in its opinion, be called for by the wants of the public service, to Congress, with whom alone rests the power to "lay and collect taxes, duties, imposts, and excises." This duty has, upon several occasions heretofore, been performed. The present condition of things gives a flattering promise that trade and commerce are rapidly reviving, and, fortunately for the country, the sources of revenue have only to be opened, in order to prove abundant.

While we can anticipate no considerable increase in the proceeds of the sales of the public lands, for reasons perfectly obvious to all, for several years to come, yet the public lands cannot otherwise than be regarded as the foundation of the public credit. With

so large a body of the most fertile lands in the world, under the control and at the disposal of the Government, no one can reasonably doubt the entire ability of the Government to meet its engagements under every emergency. In seasons of trial and difficulty, similar to those through which we are passing, the capitalist makes his investment in the Government stocks, with the most assured confidence of ultimate reimbursement; and whatever may be said in a period of great financial prosperity, such as existed for some years after 1833, I should regard it as suicidal, in a season of financial embarrassment, either to alienate the lands themselves, or the proceeds arising from their sales. The first and paramount duty of those to whom may be intrusted the administration of public affairs, is to guard the public credit. In re-establishing the credit of this Central Government, the readiest and most obvious mode is taken to restore the credit of the States. The extremities can only be made sound by producing a healthy action in the Central Government, and the history of the present day fully establishes the fact, that an increase in the value of the stocks of this Government will, in a majority of instances, be attended by an increase in the value of the stocks of the States. It should, therefore, be a matter of general congratulation, that amidst all the embarrassments arising from surrounding circumstances, the credit of the Government should have been so fully restored, that it has been enabled to effect a loan of 7,000,000 dols., to redeem that amount of Treasury notes, on terms more favourable than any that have been