and foreign peace, which their heroic devotion to the cause of their inde pendence merits. In Mexico, a sanguinary struggle is now carried on which has caused some embarrassment to our commerce: but both partie profess the most friendly disposition towards us. To the termination o this contest, we look for the establishment of that secure intercourse, so ne cessary to nations whose territories are contiguous. How important it will be to us, we may calculate from the fact, that, even in this unfavorable state of things, our maritime commerce has increased, and an internal trade, by caravans, from St. Louis to Santa Fe, under the protection of escorts furnished by the Government, is carried on to great advantage, and is daily increasing. The agents, provided for by the treaty with this power, to designate the boundaries which it established, have been named on our part; , but one of the evils of the civil war now raging there, has been, that the appointment of those with whom they were to co-operate, has not yet been announced to us.

The Government of Central America has expelled from its territory the party which, some time since, disturbed its peace. Desirous of fostering a favorable disposition towards us, which has on more than one occasion been evinced by this interesting country, I made a second attempt, in this year, to establish a diplomatic intercourse with them; but the death of the distinguished citizen whom I had appointed for that purpose, has retarded the execution of measures from which I hoped much advantage to our commerce. The union of the three States which formed the republic of Colombia has been dissolved; but they all, it is believed, consider themselves as separately bound by the treaty which was made in their federal capacity. The minister accredited to the federation, continues in that character near the Government of New Granada; and hopes were entertained that a new union would be formed between the separate States, at least, for the purposes of foreign intercourse. Our minister has been instructed to use his good offices, whenever they shall be desired, to produce the reunion so much to be wished for the domestic tranquillity of the parties, and the security and facility of foreign commerce.

Some agitations, naturally attendant on an infant reign, have prevailed in the empire of Brazil, which have had the usual effect upon commercial operations; and, while they suspended the consideration of claims created on similar occasions, they have given rise to new complaints on the part of our citizens. A proper consideration for calamities and difficulties of this nature, has made us less urgent and peremptory in our demands for justice than duty to our fellow-citizens would, under other circumstances, have required. But their claims are not neglected, and will, on all proper occasions, be urged, and, it is hoped, with effect.

I refrain from making any communication on the subject of our affairs with Buenos Ayres, because the negotiation communicated to you in my last annual message, was, at the date of our last advices, still pending, and in a state that would render a publication of the details inexpedient.

A treaty of amity and commerce has been formed with the republic of Chili, which, if approved by the Senate, will be laid before you. That Government seems to be established, and at peace with its neighbors; and its ports being the resorts of our ships, which are employed in the highly important trade of the fisheries, this commercial convention cannot but be of great advantage to our fellow citizens engaged in that perilous but profitable business.

Our commerce with the neighboring State of Peru, owing to the onerous daties levied on our principal articles of export, has been on the decline, and all endeavors to procure an alteration have hitherto proved fruitless. With Bolivia, we have yet no diplomatic intercourse, and the continual contests carrel on between it and Peru, have made me defer, until a more favorable period, the appointment of any agent for that purpose.

Art of atrocious piracy having been committed on one of our trading ship by the inhabitants of a settlement on the west coast of Sumatra, a frigate was despatched with orders to demand satisfaction for the injury, if those who committed it should be found to be members of a regular govern

atcapable of maintaining the usual relations with foreign nations; but if, as it was supposed, and as they proved to be, they were a hand of lawless pirates, to inflict such a chastisement as would deter them and others from like aggressions. This last was done, and the effect has been an increased respect for our flag in those distant seas, and additional security for our commerce.

In the view I have given of our connexion with foreign powers, allusions have been made to their domestic disturbances or foreign wars, to their revolutions or dissensions. It may be proper to observe, that this is done solely in cases where those events affect our political relations with them, or to show their operation on our commerce. Further than this, it is neither Gur policy nor our right to interfere. Our best wishes, on all occasions, our good offes, when required, will be afforded to promote the domestic tranquillity foreign peace of all nations with whom we have any intercourse. Any intervention in their affairs further than this, even by the expression of an official opinion, is contrary to our principles of international policy, and will always be avoided.

The report which the Secretary of the Treasury will, in due time, lay before you, will exhibit the national finances in a highly prosperous state. Owing to the continued success of our commercial enterprise, which has enabled the merchants to fulfil their engagements with the Government, the receipts from customs during the year will exceed the estimate presented at the last session; and, with the other means of the Treasury, will prove fully adequate, not only to meet the increased expenditures resulting from the large appropriations made by Congress, but to provide for the payment of all the public debt which is at present redeemable. It is now estimated that the customs will yield to the Treasury, during the present year, upwards of twenty-eight millions of dollars. The public lands, however, have proved less productive than was anticipated; and, according to present information, will not much exceed two millions. The expenditures for all objects other than the public debt, are estimated to amount, during the year, to about sixteen millions and a half, while a still larger sum, viz. eighteen millions of dollars, will have been applied to the principal and interest of the public

debt

It is expected, however, that, in consequence of the reduced rates of duty, which will take effect after the 3d of March next, there will be a considerable falling off in the revenue from customs in the year 1833. It will, nevertheless, be amply sufficient to provide for all the wants of the public service, estimated even upon a liberal scale, and for the redemption and purchase of the ren under of the public debt. On the first of January next, the entire public debt of the United States, funded and unfunded, will be reduced to within a fraction of seven millions of dollars: of which $2,227,363 are not of right releemable until the first of January, 1834, and $4,735,296, not un

til the second of January, 1835. The commissioners of the sinking fu however, being invested with full authority to purchase the debt at the n ket price, and the means of the Treasury being ample, it may be hoped t the whole will be extinguished within the year 1833.

I cannot too cordially congratulate Congress and my fellow-citizens the near approach of that memorable and happy event, the extinction of t public debt of this great and free nation. Faithful to the wise and patriot policy marked out by the legislation of the country for this object,t he pr sent administration has devoted to it all the means which a flourishing con merce has supplied, and a prudent economy preserved, for the public Tre sury. Within the four years for which the people have confided the ex cutive power to my charge, fifty-eight millions of dollars will have been ap plied to the payment of the public debt. That this has been accomplishe without stinting the expenditures for all other proper objects, will be seen by referring to the liberal provision made during the same period for the sup port and increase of our means of maritime and military defence, for in ternal improvements of a national character, for the removal and preserva tion of the Indians, and, lastly, for the gallant veterans of the revolution. The final removal of this great burthen from our resources, affords the means of further provision for all the objects of general welfare and public defence which the constitution authorizes, and presents the occasion for such further reduction in the revenue as may not be required for them. From the report of the Secretary of the Treasury, it will be seen that, after the present year, such a reduction may be made to a considerable extent, and the subject is earnestly recommended to the consideration of Congress, in the hope that the combined wisdom of the representatives of the people will devise such means of effecting that salutary object, as may remove those burthens which shall be found to fall unequally upon any, and as may promote all the great interests of the community.

Long and patient reflection has strengthened the opinions I have heretofore expressed to Congress on this subject; and I deem it my duty, on the present occasion, again to urge them upon the attention of the Legislature. The soundest maxims of public policy, and the principles upon which our republican institutions are founded, recommend a proper adaptation of the revenue to the expenditure, and they also require that the expenditure shall be limited to what, by an economical administration, shall be consistent with the simplicity of the Government, and necessary to an efficient public service. In effecting this adjustment, it is due, in justice, to the interest of the different States, and even to the preservation of the Union itself, that the protection afforded by existing laws to any branches of the national industry, should not exceed what may be necessary to counteract the regulations of foreign nations, and to secure a supply of those articles of manufacture essential to the national independence and safety in time of war. If, upon investigation, it shall be found, as it is believed it will be, that the legislative protection granted to any particular interest is greater than is indispensably requisite for these objects, I recommend that it be gradually diminished, and that, as far as may be consistent with these objects, the whole scheme of duties be reduced to the revenue standard as soon as a just regard to the faith of the Government, and to the preservation of the large capital invested in establishments of domestic industry, will permit.

That manufactures adequate to the supply of our domestic consumption would, in the abstract, be beneficial to our country, there is no reason to

doubt; and to effect their establishment, there is, perhaps, no American etizen who would not, for a while, be willing to pay a higher price for then. But for this purpose, it is presumed that a tariff of high duties, designed for perpetual protection, has entered into the minds of but few of our statesmen. The most they have anticipated is a temporary, and, generally, incidental protection, which they maintain has the effect to reduce the price, by dometic competition, below that of the foreign article. Experience, howeve, our best guide on this as on other subjects, makes it doubtful whether the advantages of this system are not counterbalanced by many evils, and whether it does not tend to beget, in the minds of a large portion of our countrymen, a spirit of discontent and jealousy dangerous to the stability of the Union.

What then shall be done? Large interests have grown up under the implied pledge of our national legislation, which it would seem a violation of public faith suddenly to abandon. Nothing could justify it but the pul lic afety, which is the supreme law. But those who have vested their capital in manufacturing establishments, cannot expect that the people will continue, permanently, to pay high taxes for their benefit, when the money is not required for any legitimate purpose in the administration of the Government. Is it not enough that the high duties have been paid as long as the money arising from them could be applied to the common benefit in the extinguishment of the public debt?

Those who take an enlarged view of the condition of our country, must be satisfied that the policy of protection must be ultimately limited to those articles of domestic manufacture which are indispensable to our safety in time of war. Within this scope, on a reasonable scale, it is recommended by every consideration of patriotism and duty, which will doubtless always secure to it a liberal and efficient support. But, beyond this object, we have already seen the operation of the system productive of discontent. In some sections of the republic, its influence is deprecated as tending to concentrate wealth into a few hands, and as creating those germs of dependence and vice which, in other countries, have characterized the existence of monopolies, and proved so destructive of liberty and the general good. A large portion of the people, in one section of the republic, declares it not only inexpedient on these grounds, but as disturbing the equal relations of property by legislation, and therefore unconstitutional and unjust.

Doubtless these effects are, in a great degree, exaggerated, and may be scribed to a mistaken view of the considerations which led to the adoption of the tariff system; but they are, nevertheless, important in enabling us to review the subject with a more thorough knowledge of all its bearings upon the great interests of the republic, and with a determination to dispose of it so that none can, with justice, complain.

It is my painful duty to state that, in one quarter of the United States, opposition to the revenue laws has risen to a height which threatens to thwart their execution, if not to endanger the integrity of the Union. Whatever obstructions may be thrown in the way of the judicial authorities of the General Government, it is hoped they will be able, peaceably, to overcome them by the prudence of their own officers, and the patriotism of the people. But, should this reasonable reliance on the moderation and good sense of all portions of our fellow citizens, be disappointed, it is believed that the laws themselves are fully adequate to the suppression of such attempts as may be immediately made. Should the exigency arise, rendering the execution of

the existing laws impracticable, from any cause whatever, prompt notic it will be given to Congress, with the suggestion of such views and m sures as may be deemed necessary to meet it.

In conformity with principles heretofore explained, and with the hope reducing the General Government to that simple machine which the con tutionreated, and of withdrawing from the States all other influence th that of its universal beneficence in preserving peace, affording an unifo currency, maintaining the inviolability of contracts, diffusing intelligen and discharging, unfelt, its other superintending functions, I recommend t provision be made to dispose of all stocks now held by it in corporatio whether created by the General or State Governments, and placing the pi ceeds in the Treasury. As a source of profit, these stocks are of little or value: as a means of influence among the States, they are adverse to the pu ty of our institutions. The whole principle on which they are based, deemed by many unconstitutional, and to persist in the policy which the indicate, is considered wholly inexpedient.

It is my duty to acquaint you with an arrangement made by the Bank the United States, with a portion of the holders of the three per cent. stock, b which the Government will be deprived of the use of the public funds long than was anticipated. By this arrangement, which will be particularl explained by the Secretary of the Treasury, a surrender of the certificate of this stock may be postponed until October, 1833; and thus the liability the Government, after its ability to discharge the debt, may be continue by the failure of the bank to perform its duties.

Such measures as are within the reach of the Secretary of the Treasury have been taken, to enable him to judge whether the public deposites in tha in tit ition may be regarded as entirely safe; but, as his limited power may prove inadequate to this object, I recommend the subject to the attention o Congress, under the firm belief that it is worthy of their serious investiga tion. An inquiry into the transactions of the institution, embracing the bi and hes as well as the principal bank, seems called for by the credit which is given throughout the country to many serious charges impeaching its character, and which, if true, may justly excite the apprehension that it is no longer a safe depository of the money of the people.

A nong the interests which merit the consideration of Congress after the payment of the public debt, one of the most important, in my view, is that of the public lands. Previous to the formation of our present constitution, it was recommended by Congress that a portion of the waste lands owned by tle States should be ceded to the United States for the purposes of general harniony, and as a fund to meet the expenses of the war. The recommendation was adopted, and, at different periods of time, the States of Massachusetts, New York, Virginia, North and South Carolina, and Georgia, granted their vacant soil for the uses for which they had been asked. As the lands may now be considered as relieved from this pledge, the object for which they were ceded having been accomplished, it is in the discretion of Congress to dispose of them in such way as best to conduce to the quiet, har nony, and general interest, of the American people. In examining this question, all local and sectional feelings should be discarded, and the whole United States regarded as one people, interested alike in the prosperity of their common country.

It cannot be doubted that the speedy settlement of these lands constitutes the true interest of the republic. The wealth and strength of a country are