Lancaster Intelligencer

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" THAT COUNTRY IS THE MOST PROSPEROUS, WHERE LABOR COMMANDS THE GREATEST REWARD.''—Buchanan.
V OL. XLIX.
CITY OF LANCASTER, TUESDAY MORNING, DECEMBER U), 1848.
NO. 47,
.'aiuttstcv Jntclltgenccv,
ri: iii.isiiKi) i.vKiiY Tt;Ksn.\Y mohxing, BY E. W. HUTTER.
in " Union Court," in the rear of the Market ]louse, adjoining Centre Square.
T E RMS:
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Advertisemknts.—Accompaiiieci by the CASH, and not exceeding one square, will be inserted three limes for one dollar, ami tweiiiy-fivc cents foreach additional insertion. Those of a greater length in proportion.
Ton Printing.—Such as Hand Bills, Posting Bills, Pamphlets, Blanks, Labels, &c., &c., executed with accuracy .ind  at tlie shortest notice.
nS^.PORT   OF   THE   SECRETARY
OF THE TREASURY.
TiiKAsuuY Depajitmknt, Dec. '.', 1S4S.
In obedience to law the following report is sub- nutted-.
The receipts and e.xpeiiditui'e.s for the fiscal year riidiiu; June ?,0, ISIS, were—
I'ronrCiistoms, $31,757,070 96
Kroni public lauds, 3,328,642 .50
I 10111 miscellaneous sources, 3.51,037 07
I'loiu avails of loans and trea'y notes 21,256,700 00
Total Receipts. .^>j(l balance in the IreHsiiry, .Tiilv 1. 1S47,
Total means, llie expenditures   ihiniit;   tbe   same tisoal VP^t were,
.%,693,4.50 09
1,701,2.5125
58,394,701 84
58,241,167 24
Leaviiic; balance   in  treasury .luly 1, 1848'; of
.\s appears in detail by accompany¬ ing statement A. The estimated receipts and expenditures for the
fiscal year ending .Tune 30, IS 10, are—
From customs, 1st quarter, by actual returns,
From customs, 2d, 3d and 4th quar¬ ters, as estimated.
153,534 00
8,991,93,'3 07 23,008,064 93
Fiom public lands. From iniscpllaneous
32,000,000 00 3,000,000 00 1,200,000 00
36.200.000 00
From loans and ireas'ry notes, 1st quarter, by actual returns, per statement B, 10,127,200 00
From loans and trcas'ry notes, 2d, 3d and 4tii quarters, as per state¬ ment C, 10,568,235 30
Total receipts, Add balance in the treasury .Tuly 1st, 1848,
Total means as estimated,
ExpENDiTt;nE3, viz.
The actual expenditures for the last quarter, ending Sept 30,1848, were, 17,866,104 91
As appears in detail b}' accompanying state¬ ment B.
The estimated expendi¬ tures duruig the otlier 3 quarters, tVom (Tct. 1, 1848 to .Tune 3(J, 1S49, are—
C'ivil list, foreign inter¬ course and miscel¬ laneous, 12,169,354 01
Army proper, &c.,        10,464,809 80
Fortifications, ordnance arming militia. Sac,
Indian department.
Pensions,
.\aval establishment.
Interest on public debt and treasury notes,
Treas'rynotes outstand¬ ing and payable when presented.
20,695,435 30
50,895,435 30
153,534 60
57,048,969 90
1,846,697 29
1,589,158 18
722,706 12
6,089,032.56
3,285,423 23
101,989 31
.54,195,275 00
Leaving balance in the
treasurv July 1, 1849,
The estimated receipt.s and expenditures for the fiscal year commencing 1st .July, 1840, and ending ;!Otb .lune. 185fi, are— From customs. From lands, From miscellaneous soiiiees.
2,853,094 84
32,000,000 00
3,000,000 00
400,000 00
Total receipts. Add balance in tbe treasury 1st July 1849,
35,400,000 00 2,853,094 84
Total means as eslimated, 38,253,294 84
The expenditures iluriiig the same period, as estimated by the several Departments of State, Tre.-isury, War, Navy and Postmaster Gen., are— The balance of former appropriations
which will be required  to be  e.v-
pended in this year. Permanent   and   independent appre-
priations, .Specific appropriations a.sked for this
year.
3,702,537 29
5,297,512 52
24,153,102 92
Total 33,213,152 73
This sum is composed ofthe following particulars:
Civil list, foreign intercourse and mis¬ cellaneous,
Army proper, &c.,
Fortifications, ordnance, arming indi- tia, &c.,
Indian department.
Pensions,
Naval establishment.
Interest on iniblic debt ami  treasury notes.
9,347,790 91 5,902,428 61
2,242,559 00 1,104,014 45 1,458,400 00 9,3.58,857 38
3,799,102 38
n the Treasury, 1st
33,213,152 73 5,040 ,.542 11
Leaving balance i of July, 1850,
$38,253,694 84 This statement shows a balance in the treasury on the aoih of June, 1849, of $-2,853,G9t 84, and a balance in the treasury on the 30th ol June, IboO, of ^5,040,542 11. ^      . ,
In the estimated expenditures for the year end- inc oil the :iOth June, 1850, are included balances of° appropriations, amounting to the sum of $3 762 537 2^, a considerable portion ot which may not be required. Unless new and extraordi¬ nary expenditures are authorized by Congress no further loans will be required, and the public debt may be reduced.
The whole nett revenue from duties during the entire period of four years and three months ofthe operation of the tarirf of 1642, (per table D ) was §101.554,653 12, being an annual average of $28,- 895,208.32. The nett revenue received from the tariff of 1840, during its entire operation, from 1st of December, 1840, to 30th of September, 1848, (per table E,) was §00,054,503 7i\ ov an average of $30,902,480 25 per annum, being an average ol $7,007,280 90 moie jier annum, under the tariff of 1840, than was received under the tariff ol 1842. The nett revenue for the first fiscal year under the tariff of 184G, (per table A,) was $31,757,070 90 being S>757;07b'J0 more than the estimate of this Department, and this amount would go on aug¬ menting every year under this act with a favorable state of foreign commerce and industry in a ratio at least as great as the increase of our population. As the high duties under the act of 1842, were vapidly substituting the domestic articles and ex¬ cluding the foreign rival, the revenue must have declined. If however, the act of 1842 had yielded the average revenue received during the period of its actual operation, this we have seen would have been an annual loss of upwards of seven millions of dollars as compared with the average revenue of the tariff of 1840. With such a result, instead of a large surplus on tlte 30th of June, 1850, there would /have been an addition of more than twenty- live miUlions of dollar? to our national debt, which must ij^ve gone on rapidly increasing, requiring in time ^fp^^*^^ "^^^' ''"'^ larger loans to be negotiated. Ilso the proceeds of the sales of the public vere taken from the treasury for distribution the States, the augmentation of the debt iccumulating interest would have been still japid and alarming.    From this disastrous,
condition we have been saved by the tariff of   1840
yielding from reduced taxes an average excess thus lar of more than seven millions of dollars over the average receipts from the tariff of 1842. Had that act remained in force during the war, from dimin¬ ished revenue the loans must have been greatly aiig.mented in amount, with a small and declining income, and instead of juemimns realized, large discounts must have been allowed. That the re¬ venue would have declined, results from the posi- ticii of the protectionists, that by continuing the system a few years they would supply the whole home market with the protected domestic articles, when the foreign importation must cease, and the revenue also. The result, then, of protection, must be the annihilation ol" the foreign import trade of the country, so far as regards protected products. With the exclusion or diminution of imports, the exports must cease or be reduced, for foreign na¬ tions could not buy them.
We exported last year, (per table F,) §130,203,- 709, in value of domestic products and fabrics, ex¬ clusive of specie, and under low duties, this must go on augmenting. But how can foreign countries pay for these exports, if we will take no imports, or very few, in return? Clearly,our exports must in time cease, or fall to a very small sum, the foreign markets must be destroyed, and the price of our staple exports of cotton, of rice, of tobacco,
of breadstuffs and provisions, must decline, for we cannot take the return in specie from abroad with¬ out exhausting those markets in a single year, nor can we consume at home this augmenting surplus. The British empire (per table G,) took from us, (not during the year of famine, as it is called, ot 1847, but in 1848,) our domestic exports, including cotton, tobacco, rice, breadstuffs and provisions, and other domestic articles, exclusive of specie, to the value of §78,741,410, and Great Britain and Ire¬ land, of the value of $04,222,268; and this is the trade of our best foreign customer, which protec¬ tionists propose to sacrifice by high or prohibitory duties. If the tariff of 1842, gradually excluded, as it must, nearly all British fabrics, could they take $78,741,110 in value of our exports, whilst we would take from them scarcely anything but specie in exchange ? Such a trade would exhaust Great Britain of her surplus specie in a single year, and leave her nothing with which to purchase our ex¬ ports, and so in regard to all other nations.
Thus would go our foreign, markets, commerce and revenue, and with them our carrying trade, and our vessels and steamships would remain at the wharves without freight.
If the importation of protected articles would rapidly deciease when the foreign were high in price, and specific duties operated under the tariff of 1S42. (per table H, compiled from Treasury re¬ turns in 1844.) as a protection from 41 to 243 per cent, what must not have been the decline of im¬ portation and revenue when the foreign article^fell, as it has in many cases, 50 per cent., bringing up the specilic duty from 41 to 82, and from 243 to 436 per cent.' This fact illustrates another objec¬ tion to the specific duty, namely, that although it professes to be stationary, it is in fact constantly augmenting ^fom reduced prices of foreign articles. Experience proves that from improved machinery, new inventions and reduced cost of production, the foreign articles are constantly diminishing in price, whilst the specific duty remaining unchanged, it is continually increasing in ratio as an equivalent ad valorem, and the protection augmenting every year. Thu?, if the price of sugar is six cents a pound and the duty three cents, it would be equal to 50 per cent., ad valorem; but if the price of sugar fell to three cents, the duty would have risen to 100 per* cent, ad valorem, thus doubling the protection, and continually augmenting, with de¬ creasing foreign prices until the duty becomes pro¬ hibitory, and the revenue on such articles disap¬ pears; whereas the ad valorem bears under all changes of price the same e.xact ratio to the cost ol the foreign fabric, and therefore is the most just and equal, as also necessarily insuring a larger revenue.
Annexed will be found the table marked H, of seventy-four principal protected articles, prepared from actual returns, and attached together, with others, to the very able report by Mr. McKay, from the Committee of Ways and Means, of Ilth March, 1844, at the Treasury Department in 1844, embracing coal, iron, glass, salt, sugar, cotton goods, &c., ^c, showing the actual'specific and minimum duties under the tariff of 1842, on those articles, and the equivalent ad valorem, ranging from 41 to -.243 per cent. Now if these foreign articles have fallen in ynice since that date fifty per cent., the equivalent ad valorems would of course now range from 82 per cent, to 4SG per cent., and would go on increasing as the foreign article diminished in price, soon becoming absolutely prohibitory, and destroying all revenue. In this aspect of the case, the objections to the specific duties as a permanent system, vvith a view to revenue are insuperable, whilst their unjust operation upon labor, in impos¬ ing so much higher duties, as an equivalent ad valorem on the cheaper, than the more costly qual¬ ities of goods, cannot be successfully defended.
Our manufacturers do not desire the restoration of the Tariff of 1842. They know from its exces¬ sive and prohibitory duties it will soon annihilate imports and revenues, and produce a reaction fatal to the protective policy. They know also, that frorn its immense bounties, ranging at present prices from sixty to three hundred per cent., it will stimulate domestic productions in a few years to such an extent as finally to prove disastrous to our manufacturers. That which our manufacturers now desire, is what they regard as moderate duties made specific in certain cases. These specific duties will, as is shown, be found constantly augmenting under the operation ol the general principles by which the foreign article is constantly tending to a diminished price, whereas, the ad valorem al¬ ways bearing the same proportion to the value ot the import, is, therefore, always the most just and equal and yielding the largest revenue. The aug¬ mented revenue under the tariff of 1840 has proved that the ad valorem duties can be fairly assessed and collected. It is shown also by the returns, that this augmented revenue is derived Irom a compara¬ tively small amount of foreign imports consumed in the United States. That amount, as shown by the table before referred to, (marked F,) on all those foreign imports thus consumed in the year ending 30th June, 1848, exclusive ot specie, being but §127.400,012 upon which was realized a nett revenue of §31,757,070 96. It appears also, Irom the tables, that so far from this tariff having filled the country with foreign goods beyond its capacity for consumption, the domestic export last year, exclu-
....iptiO-, - -  , ,      , /
sive of specie, actually exceeded by the sum (per same table) of §2,713,097, the foreign imports, ex¬ clusive of specie, consumed the same year in the United States, including all articles but specie, both free and dutiable ; thus showing a balance of foreign trade in our favor without taking into view the immense profit realized in the foreign market on our exports, generally estimated at about fifteen, per cent, or the profits of freight and navigation.
This was not a year of famine abroad, bu. ol abundant crops in Europe, attended also with re¬ vulsions there highly unfavorable to ourcommerce. creating innumerable foreign which vast sums
bankruptcies,  by were lost to American creditors, r^auYrUTo be"i^"placed by the expoj-t of our specie, Si was greatly augmented bythe discredit in
our'market "of all' bills drawn on our foreign ship¬ ments, producing by this artificial use of exchange an unnatural demand for si^cie, and a consequent exportation. But all this specie must soon come back to our country except so far as it is lost by foreign bankruptcy.
It appears that for the year ending June 30th, 1848, not of famine, but abundant crops m Europe our exports of breadstuffs and provisions, per table T amounted to the sum of $37,472,750, being lar¬ gely more than double the average annual export during the Tarifl' of '42. The result this year de¬ monstrates that even without a famine, and m sea- sons of good crops abroad, and even when their means were exhausted the preceding years, by art unprecedented loss of specie producing unpara leled revulsions and bankruptcies, yet with low duties enabling them to exchange their fabrics for our sur¬ plus agrictdtural products they could and did take a larger amount of our breadstuffs and provisions 0 the^^l- of §37,472,751. Thtts f t^ ^J farmers found this large ^ore^gn tn^vmkrthe^v surplus which otherwise must have r^m^'ned im sold here, our navigatory interest received a ne^ impulse as well as our commerce, our tonnage having increased during the last year, per table *, from 2.839,040 to 3,150,502 tons, being more than three times the increase we have realized in the 1 same time under any protective, tariff, and making
the whole   increased   tonnage under   the   tariff of 1840, 588,417 tons.
The increase of our commerce during the two years since the enactment ofthe tariff ol 1840, has been so great that our domestic exports, exclusive of specie coined abroad, exceeded by the vast sum of $80,005,181, the exports of the two years pre¬ ceding under the tariff of 1842, whilst the tarilfof 1S4G has thus augmented our commerce, tonnage and revenue, it has .seen this country pass uninjured through the ordeal of an expensive foreign war. ab¬ sorbing and withdrawing from industry nearly llfty millions of capital for loans. It has seen the great revulsions in England of 1847 pass over us almost unharmed, whilst the general overthrow of govern rnents on the continent of Europe, with the destruc¬ tion of confidence, credit and industry there, and with millions lost to our merchants by foreign bankruptcies: yet even through this ordeal, under the benign influence of the Tariff of 181(>, this country has passed, and is still prosperous and pro¬ gressive, and prices of manufactures are far less depressed than has been the case in all such pre¬ ceding revulsions. Upon the re-enactment of the Tariff of 1842, or any similar restrictive measure, smuggling to a vast extent will become an organ¬ ized system. By estimates from the Topographical Bureau and Coast Surveys, hereto annexed, marked A A & B B, it appears that our direct maritime ocean   front, exclusive   of bays, inlets, islands, &c.,
amounts to 5,120 miles, our frontier upon Mexico .0 1,450, and our frontier upon British possessions to 3.303 miles, making in all 9,879 miles, which we have to guard against smugglers. But, if in ad¬ dition to this, as must be done, we take the shore line of the United States on the Atlantic, the Pacific, and the Gulf, including the bays, sounds and other irregularities of the sea shore, and of sea islands, and of the rivers to head of tides, it makes a dis¬ tance of 33,003 miles, as estimated by the Coast Su-rvey, which added to 4,759 miles of frontier upon the British and Mexican possessions, constitu¬ tes an entire line open to smugglers of 37,822 miles, to protect which against illicit importation under the temptations of such a tariff as that of 1842, would be impossible. In this manner, smuggling, so debasing and demoralizing, so destructive of rev¬ enue, so injurious to the honest trader, and to the whole country, creating a contempt for the laws and the authority of the Union, would become the safety--valve of the protective policy by the opera¬ tion of causes beyond all governmental control.
Since my last report the continent of Europe has been convulsed by revolutions and civil commo¬ tions, paralyzing their commerce, credit and indus¬ try, and diminishing our trade with them,compared with what it would have been, if these events had not occurred. Nevertheless such have been the ad vantages of our more unrestricted commerce with all the world, that the estimates ol revenue for the fiscal year, presented in my last report may yet be realized, the quarter ending on the 30th September last, being the first quarter of the present fiscal year, having yielded $8,991,835,07.
The adoption by each nation of a high tariff is a war upon the labor of the world. As labor is more productive, capital is more rapidly increased and wages augmented. Yet the tariff, by compel¬ ling each nation to employ a portion of its indus- tr}' in articles which can be produced more cheaply abroad, and refusing the exchange, forces labor throughout the world into less profitable pursuits, and, as a consequence diminishes the products of labor as well as its wages. Thus if silks can be manufactured at a less cost in Europe, and bread- stuffs more cheaply in this country, and by high tariffs we prevent the import of silks here, whilst by similar tariffs abroad, or their inability to pur¬ chase from us because we will not take their fabrics in exchange, our breadstuffs are excluded to a greater or less extent from their markets and their silks from our own, labor is forced in both countries into less productive pursuits, and both have sustained a loss. International tariffs diminish the aggregate value of the profits of labor to the extent of hun¬ dreds of millions of dollars every year, and reduce correspondingly the wages of labor.
It would be most useful to examine the tariffs of all nations, and ascertain how much labor in each is thereby diverted  into less  productive  pursuits. These tables have never yet been collected, but if, of the thousand million people of the earth, the labor of two   hundred   millions  is thus rendered less  profitable  to  the extent  of one  cent  a day for each,  the annual loss would be six  hundred millions  of  dollars.     Man was   commanded to labor,  but he  was permitted by  his  Maker  to employ his industry in each country in those pur¬ suits   for   which   it  was  best  suited,   and   where his  labor  would be  less  severe  and  better   re¬ warded.    But the laws of man, by high duties, di¬ minish the products of his industry, thus augment his hours of toil and deprive him of the  time de¬ signed by his Creator for the acquisition of know¬ ledge.    These   laws also, whilst   diminishing the wealth of nations, produce discord between them, each by high tariffs proclaiming war upon the in¬ dustry of all others.    Under free trade each nation will profit by the labor of every other; the surplus of each would be thus exchanged  with the others, by a reciprocal commerce beneficial to all parties. The true industrial interests of nations are iden¬ tical, and in exchanging with each  other the pro¬ ducts most cheaply produced by each, labor every where benefits labor, man his brother man, and na¬ tions each other, and their only antagonism is in¬ troduced by human  legislation.    The  doctrine of free trade is the petition of labor to  employ   itself every where in those pursuits best adapted  by na¬ ture to every country,  and yielding,  therefore,   in each the  largest products and highest wages.    It looks upon our   race every where  as  friends and brothers, as  equal in rights and united in interest and  destiny.    Rightly understood, there is perfect unity of interest between man and man, and nation and  nation, and between  capital and  labor.    We see the benefits of reciprocal free trade among all the States of this Union, although their wages, pro¬ ducts and fabrics are as various as those of sepa¬ rate nations, yet all the   States find it   to be their true interest to admit freely the products of each. The benefits  of this unrestricted reciprocal  com¬ merce constitute the great bond of interest constant¬ ly augmenting, which keeps together the various parts; but if the  protective doctrine  be true,   it would be the real interest of each and of all these States to impose duties upon   similar   products in others,   for  the protection  of the  people of each State.    Yet, clear as is the proof ol tlie benefits of reciprocal free trade between the States of this Un¬ ion, the principle as a question of political economy is the same extended to other States not united with us under the same government.    The difference in their political  institutions cannot  affect the great principles of commerce.
The local laws of Ohio and Louisiana, of Missis¬ sippi and Massachusetts, are more variant in some respects than those of many other States beyond the limits of the Union. Now, whilst we acknow¬ ledge the benefits of reciprocal free trade between these four States, thus differing in their local insti¬ tutions, wages and products, the protectionists deny that it would be beneficial to establish reciprocal unrestricted commerce with other States beyond our limits. Yet variant forms of government can make no difference as to the reciprocal benefits of commerce. If free trade be beneficial among re¬ publican States, it might at least be extended to them, although monarchies were excluded; but none will maintain that nations should restrict their commerce with each other, because they difler in their form of government. Although governments may differ, we are one race throughout the globe; the'toiling millions who inhabit it have an interest, and as a question of political economy the benefit of free trade must be the same, whether extended to States within or beyond the limits of the same government; and each State, though separated hereafter by some catastrophe from every other State, would be alike still benefited by reciprocal free trade among the whole, for their commercial interest would not change with the separation frorn the confederacy.
A Congress representing the several States of this Union perceive how injurious would be the effect of a tariff by any one upon its own interest, and that of all States. Now trade is not geographical of political, and if a Congress of delegates from all nations were assembled, they would soon perceive that commerce was a unit, that it was not local, but international, and that tariffs by one or more nations on the products of others were just as in¬ jurious to each and to all nations as would be a tariff in one State upon the products of all the other States of the Union. If, then, in such a Con¬ gress of all nations, re-assembling from time to time, their several tariffs were discussed, and their injurious effects upon each and every other nation
demonstrated, the whole protective system through, out the vvorld would fall before the light of such an investigation. When the laws of nature are beyond the reach of man, there is perfect order, under the direction of Almighty power; but when¬ ever man can disturb these laws, discord and injury are sure to ensue.
The earth, the sun, and countless systems whirl-
chiefly on our own people, who purchase their. Let us buy such imports as we desire at low prices, and the difference of prices that is thus saved to our people is so much gained as an additional capital to encourage our own industry, to increase employment and the wages ol labor.
But if the .system of reciprocal taxation is wrong, what argument can be offered in favor of high du-
circulation of caiiital and realization of profits, but in the still greater loss in arriving al home too late with the cargo, and theniby losing the market, or at least a better piice, and this loss of time and in¬ terest, of prices and markets, is as great in the re¬ turn as in the outward passage. The voyage by steam, from our Atlantic ports to Asia, by ihe route of Chagres and Panama, with a railroad to
ing through universal space, move onward in per-   ties upon fabrics of foreign nations, when they re-    be constructed  by private   enterprise   across  the
feet order and beauty, but even the harmony of the spheres would be disturbed if the legislation of man could interfere and arrest the laws of nature. The natural laws which control trade between nations, and regulate the relations between capital and pro¬ fits on the one hand, and wages and labor on the other, are perfect and harmonious, and the laws of man, which would effect a change, are always in¬ jurious. The laws of political economy are fixed and certain.
Let them alone, is all that is required of man; let all international exchanges of products move as freely in their orbits as the heavenly bodies in their spheres, and their order and their harmony will be as perfect, and their results as beneficial, as is every movement under the laws of nature when undis¬ turbed by the errors and interference of man.
If labor is dear here, and low abroad, in the ex¬ change of products we get more of theirs for a smaller amount of ours, and gain by the exchange. The cheapness of foreign labor is one argument in favor of exchange with them. Thus if we concede, as to linens, that Europe, from cheap labor, could afford to sell two yards for what one would cost here, it would be our interest to purchase from them at the reduced price. But according to the protective theory, the cheaper foreign labor, and the lower the price ofits products, the more should vve e.xclude them by the higher rates of duties. In the absence of duties, we will exchange our surplus products for their cheaper fabrics, and our labor being applied to the production of articles thus ex¬ changed abroad, wages will be enhanced here, by obtaining more extended markets for our products, and getting for them a greater quantity of useful articles, at lower prices. In the absence of tariffs, the divisions of labor would be according to the laws of nature in each nation, and the surplus of each would thus be exchanged among the whole, each employing its labor only in the most product¬ ive pursuits, and therefore the aggregate profits would be largest. If labor were so low in any for¬ eign country that they could furnish  us   goods at
about nominal prices, and these cheap articles were such as we wanted here, it would be our interest to purchase them, in exchange for our products, and the cheaper the foreign articles the greater would be our gain in the exchange. It is a strange objec¬ tion to the purchase of foreign articles that the price is too low.
The argument that we must encourage our infant manufactures was always fallacious, for they would encourage themselves as soon as the country was adapted to them. But are they now infant manu- tactures 1 We have called them so for sixty years, and will they ever cease to be infant manufactures until weaned from legislative protection ? On the first of February next the markets of Great Britain will be open to our breadstuffs at nominal duties. Shall we enlarge the markets for our products by selling them to Great Britain ia the only way in which she can purchase them for a series of years, by taking in exchange such of her fabrics as she can sell to us at cheaper rates than we can make them, to the farmer or planter. This is just a question whether he should have two markets or one. or whether he shall sell more at a higher or lessj and at a lower price. If it be our interest to shut out British fabrics, it would be theirs to renew their corn laws, and exclude our breadstuffs from their markets.
It is said that other nations will not take our products in exchange for their fabrics, but, vvith reciprocal free trade, they must take them by the universal rule, that the purchaser will buy the cheapest articles, without inquiring whether they were made at home or abroad. To force our in¬ dustry by protective duties into less productive pur¬ suits, by forbidding these exchanges, is to increase the ainount of labor and diminish its products, or, in other words, to force our workmen to labor more and receive less.
The people ofthe Union, as consumers, pursuing their true interest, if left to their own choice, unfet¬ tered by legislation, will purchase the best and cheapest articles. But this is restrained by law, and the consumers compelled, by high duties, to purchase only, or chiefly domestic articles, because this, it is said, will encourage home industry. But the foreign import has been purchased by some do¬ mestic export. The barter may not have been di¬ rect, various factors may have intervened, bills of exchange may have been used, or coin may have adjusted occasional balances; but in a series of years, in the aggregate, international trade is but an exchange of products. Thus the foreign imports bring exchanges for some American exports; our own home industry, which produces that export, has been better encouraged than if forced by law into some other pursuit, rendered profitable only by high duties.
The temporary high price of labor in a particu- ular employment is often imputed to the tariff But if it be conceded that the protected articles are thus enhanced, the additional price paid by the consu¬ mers is so much capital taken from them by the tariff to the full extent of increased prices which otherwise would have constituted a fund lor the employment of labor and the payment of wages. If then anything is gained in the enhanced price by a particular branch of industry, it is at the ex¬ pense of all others, and must result in a diminution of wages depending, as they do, on the aggregate profit of all the capital and labor of the country, and not upon that employed in any particular branch of industry.
Thus, while wages may be temporarily augtnent- ed in some pursuits favored by law, they are dimin¬ ished in all others, and the wages ofa great majority of laborers would be reduced.
From the diminished aggregate capital then fol¬ lows a diminution of the aggregate wages paid in a nation. A vast majority of the labor of this coun¬ try is employed in agriculture, commerce, naviga¬ tion, and the non protective pursuits, and if these are depressed their profits are reduced ; the wages of those employed jn such pursuits fall, many are thrown out of employment, and thus a general fall of wages ensues—the protected manufacturer even¬ tually obtains labor at a very reduced rate. The effect of a protective tariff in truth, is not to en¬ hance wages, but to depress them, and render capital invested in manufactures more profitable by en¬ hanced prices of the protected fabrics. Wages throughout the whole country become lower than they were before, because the aggregate profits ot the capital of the nation engaged in all its industry is diminished. Wages in one branch of industry cannot be high, when they are low in all others, for wages, like all other commodities, unfortunately will soon find the same level. The aggregate prof¬ its of all the labor of the country and not of any particular branch of industry, constitute the fund out of which wages are paid, and if that general fund is reduced by diminished profits, wages through the whole country must eventually fall. If then, the great mass ot labor in this country and of cap¬ ital is invested in agriculture, commerce, navigation, and such branches ot industry as require no protec¬ tion, and these pursuits are injured by a protective tariff, either by diminishing the market for the sur¬ plus raised by those thus employed, reducing the price of what they sell, or compelling them to pay more for what they buy, there must be in time a general fall of wages throughout the country, even although a particular branch cf industry may have been rendered more profitable by a protective tariff. This duty then, instead of protection;; is a tax upon the whole industry of the country invested in pur¬ suits requiring no tariff.
Nor is it any mitigation, bul an aggravation of the evil that some other nations impose high duties on their own consumers of foreign products. The foreign duties may, or may not prove injurious to our industry. If the American article is still in some cases sold abroad to their consumers at a price enhanced by their duty, the injury has been to that extent to them only, and not to us, but when by way of relieving us from the injury, whether real or imaginary, we impose a tax upon our own peo¬ ple as consumers, by compelling them to pay high prices for foreign products by high duties, we only augment the evil. Reciprocal free trade is best for alll and reciprocal high duties worst; when it is sai 1, if foreign nations tax our produce by high duties, we must tax theirs in the same manner, we forget thattheirduty on foreign imports falls mainly on their own people, who purchase such imports, and so likewise our tax on foreign imports falls
ceive our exports at a nominal duty in exchange Formerly, our protectionists admitted that if Great Britain would freely receive our breadstufts we should take their fabrics at low duties, or free of duty in exchange. Then Ihe corn laws were in lull force in Great Britain, and it was supposed would remain so forever. But the system was repealed, our chief agricultural products are now invited free of duty or at a nominal duty on the Istof February next into all their ports. Our protectionists now abandon their former position, and maintain that it injures our farmers to purchase British fabrics at low prices, even though England will take our breadstuffs at a nominal duty in exchange.
Wages can only be increased in any nation in the aggregate by augmenting capital, the fund out of which wages are paid, and the capital gained by saving in the diminished cost of production and prices to the consumers, will invest itself in new pursuits necessarily augmenting the demand for labor, and as a consequence, its aggregate products, profits and wages. On the other hand, the destruc¬ tion or diminution of capital, by destroying or re¬ ducing the funds from which labor is paid, must reduce WMes, It is not, however, by the transfer of the same amount of capital by law from one pursuit to another that the aggregate capital and profits of national industry can be increased, but by the augmentation of the capital, whether by saving or otherwise ; and the radical defect of the restrict¬ ed system is that the Tariff never augments capital, but simply changes the pursuits in which it is in¬ vested, and therefore can never augment wages. On the contrary, it must in the aggregate depress wages by preventing a saving of capital for the employment of labor and the increase of its wages. Our arguments in favor of free trade appeal to all nations to reduce their duties on our products, whereas our arguments for protection are reasons offered to all nations to raise the duties on our ex¬ ports. Our arguments would persuade them also of the mutual benefits of reciprocal free trade, and teach the doctrine of international unity of interest, whereas the other attempts to prove that their in¬ terests are antagonistical, and will be best consulted by each inflicting the greatest injury upon the other by high tariffs. The one would be read abroad in their legislative and executive councils in favor of a reduction of duties on our products—the other would be quoted in favor of raising such duties.
High tariffs should be more useful when they are the most effective. Let us take the interior of New York, remote not only from the ocean, but from railroads and canals. Now if the duty were 20 per cent, on the imports arriving at the city of New York or its vicinage, that city and its neighborhood, by the protective theory, should be more injured by the importation than the interior of the State, the freight to which on many foreign articles might add twenty per cent, to the cost, making the whole enhancement of price forty per cent., and thus op¬ erating as a double protection in the interior com¬ pared with the seaboard. Now if the restrictive theory be true, the resident of the interior being better protected, the tariff and freight on the foreign articles operating as a double duty, should be more prosperous than the resident of the seaboard. But the farmer's products are highest on the seaboard, and lower at every point as we retire from it; low at Albany and Buffalo, still lower at Erie, Detroit, Cleveland, Chicago and Lasalle; whilst the price of all the farmer buys isproportionably enhanced, and nothing but the fact that his lands are cheaper in proportion as they are remote from the foreign market, enables him to sustain the competition.
The protective system is agrarian, and is war ujTon property. It attempts to organize labor and capital, adding to the profits of one pursuit by re¬ ducing that of another. It is incompatible with the security of capital or labor; for capital is but the accumulation of the gains of labor, and there¬ fore whatever destroys the security or profits of capital results in an equal injury to labor. Besides its injurious effects upon industry, it is an arbitrary and despotic power, and if the people should become accustomed to its exercise, looking to legislative support and protection, it would terminate in a struggle for the division and distribution by Con¬ gress every year of properties, profits and capital among the favored classes.
No legislation of man can change the law of capital and wages, namely, that as capital augments, being the source from which wages are paid, there will be an increased demand for labor, and a conse¬ quent addition to its rewards. Capital and wages are the weights in the opposite sides of the scale, vibrating under unchanging laws, wages ascending as capital is augmented, and descending as the cap¬ ital is reduced. If then we would augment wages, as every lover of mankind must desire, we must increase capital, which no tariff or organization of labor can effect: although it may transfer capital from one pursuit to another, always diminishing the aggregate profits when the transfer is forced by
law.
The belief is erroneous, that as manufactures in¬ crease in number, skill, capital and products, they will perpetuate high tariffs. When they attain this condition, and their fabrics exceed the home de¬ mand they will desire free trade, to open to them the foreign markets. In England this is now the case, and their manufacturers are the great advo¬ cates of free trade, as our manufacturers in time will be, and ultimately unite with all other classes in desiring the abandonment of all tariffs and cus¬ tom houses, and   the repeal   of all   restrictions on
commerce.
Congress having extended the revenue laws to Oregon, and created Astoria the port of the district, the Revenue Cutter Cornelius W, Lawrence, was ordered to that coast under the command of Capt, Alexander V, Thoser, an officer of talent, zeal and fidelity. The coast survey was also extended there, and through its aid buoys will be located, and light houses constructed as directed by Congress, The revenue laws not having been extended to Califor¬ nia, no duties could be collected there, but the De¬ partment exercised all its authorities by issuing the circular hereto annexed, (marked Y) opening free trade under the constitution, between its port and the rest of the Union, at the same time guarding the revenue from loss as far as practicable. It is recommended that besides Astoria, collection dis¬ tricts be authorized at San Diego, Monterey, Pun¬ gent Sound and San Francisco, upon the Pacific, Our maritime frontier upon the Pacific is now near¬ ly equal to our Atlantic coast, with many excellent bars and harbors, admirably situated to command the trade of Asia and of the whole western coast of America, while our coastwise trade between the Atlantic, the Gulf and Pacific, must soon become of great value. Congress having directed this De¬ partment to recommend such revenues as will in¬ crease our commerce and revenue, it is suggested that if we desire a lucrative trade, and augmented revenues from our Pacific coast, this object can best be accomplished by many additional steanri- ships upon that ocean, as well as upon the Atlantic and the Gulf
Beneficial as this system has proved  upon the Atlantic and the Gulf in augmenting our commerce and revenue, our tonnage and navigation, it is still better adapted to the Pacific, and the long voyages along its shores, and to Asia.   This tranquil ocean, as indicated by its name, more subject to calms, is better adapted to steamersthan the more boisterous Atlantic, and with less danger of injury to the ma¬ chinery.    The calms of the Pacific, so often retar- din<» the sailing vessel, render shorter and safer the voy^age of the steamship, whilst at other periods, the trade winds, blowing for months continually in one direction, not affecting the course of the steam¬ ers, but forcing sailing vessels so many thousands of miles out of their way, render steam necessary to the profitable navigation of that ocean.    From all these causes, the Pacific must become the prin¬ cipal theatre of the peaceful triumphs of the great expansive power of steam, and we must extend its uses there, under our own flag, if we would desire to contend successfully witn other nations for the trade and specie of Asia   and   Western America. Our imports from  Asia, such as teas, silks and chiefly costly articles, are still better adapted for the steamships than heavy  products.    The  time required in crossing  through the tropics and the equator, firom our Atlantic ports to Asia, and in the long voyages of the sailing vessel, is felt severely,
Isthmus, would soon be accomplished in a month instead of three or four months, and the gain ol time in our coastwise trade between both oceans, would be still greater. In ancient and modern times, the cities and nations that secured the trade of Asia were greatly enriched.
This has occurred successively with Tyre, Sidon, Canhage, Alexandria, Venice, Genoa, Lisbon, Am¬ sterdam and London, whilst this rich  traffic   built up large cities even in the midst of deserts, in   the caravan's route, or the track through which it pass¬ ed; with our front upon   both oceans and the gulf aided by steamships, by low duties, and shortening the voyage by the  Isthmus route, as presented in my annual reports of December 1846 and '47, we may secure this   commerce, and   with it, in time, the command of the trade of the world.    We may also extend our commerce with all the countries bordering upon the coast of western America, richer than all others in the precious metals, but abound¬ ing in articles which we desire but do not produce; whilst new and vast markets will be opened there for our products and manufactures, and the number and profits of our whale ships greatly increased. Distant now as are our possessions upon the Paci¬ fic, if we would desire to extend to them the bene¬ fits and blessings of the American Union and unite them with us in the bonds of an ever augmenting commerce and intercourse, there is at present noth¬ ing but steamships that can perform these  impor¬ tant duties in connexion with a railroad across the Isthmus  of Panama.    Such a road would  always be useful for our trade from the  Atlantic  and the Gulf, with   the western coast of America, and   at least for  heavy products with Asia, and especially with that portion of it near to or south of the equa tor; with the islands in the Indian Ocean and with Australia, even if at some distant period a railroad should connect the Atlantic, the Gulf, and the Mis¬ sissippi with our harbors upon the Pacific.    That such a road will be made   at some future   period, npon the most practicable  route, is not doubted, although from the  time and  capital  required, its completion, unfortunately, may be remote ; but the railroad whicii private enterprise could build with¬ in a year or two across the Isthmus would answer all our present purposes, and would at once bring New York within ten days of the Pacific, and with¬ in thirty days of China, and New Orleans still near¬ er, maintaining also the important communication between our own harbors on the Atlantic, the Gulf and  the Pacific.    The estimates required by law from this department for the revenue likely to arise from foreign commerce with all our ports, including those upon  the Pacific, must   depend upon future events.
If private enterprise should soon construct the railroad across the Isthmus; if an adequate number of steamships in consummation ot the beneficial systems already coinmenced, should facilitate the trade between Asia and our Pacific ports, bringing them within twenty days of China, with the best steamers in sufficient number, starting at regular periods from the Atlantic and the Gulf to Chagres, and from Oregon and Cali.ornia, Panaina, to Asia and to the whole eastern coast of America, the commerce of all our ports would be incalculably increased, and the revenue collected on the Pacific rise in a few years to several millions of dollars per annum. Nor is it only with these nations of Asia with whom we already have treaties, that steam¬ ships would increase our commerce, but it would introduce it together with diplomatic relations into vast regions of the East, with whom vve have framed no treaties, estimated to contain one hundred and thirty-five millions of people. Many of these are large and populous empires, abounding in specie and many aitides which we need, but do not pro¬ duce, and desiring also our own products and man¬ ufactures in exchange. Among these Empires with whom we have no treaties, and little or no trade, are Persia, Coruca, Cochin, China, Burmah and Japan, with whom nothing but the steam.ship can successfully introduce our commerce.
Among these is Japan, highly advanced in civili¬ zation, containing fifty inillions of people, separated but two weeks by steam from our Western coast. Its foreign trade is now nearly confined to two Dutch vessels, although it is separated from Holland by eighteen thousand miles, and from our own Pacific coast only by four thousand five hundred miles. Its commerce can be secured to us by persevering and peaceliil efforts. Our steamships would pass on their way to China, through the narrow chan¬ nel separating the two great islands, composing the emjiire of Japan, monthly or weekly in sight of both their coasts, and by thus familiarizing them with our mercantile marine, extending their know¬ ledge, overcoming their prpjudices, and opening to them new views of their own true interest, woidd .soon unseal these ports to our commerce. The ac¬ quisition of our  immense coast  upon the Pacific,
of international trade and business, the place where
assorted cargoes of our ov»'n products, and uianu
factures, as well as those of all   foreign countries,
would be  sold   and   le-shipped,   and   the   point  to
which specie and bullion would flow, as the great
creditor city of the world   for  the  adjustment ol
balances as the factor of all nations and the point
whence this specie would flow into the interior ol
our country through all the great channels of inter
nal   trade  and   intercourse.       With   these   great
events accomplished, and with   abundant  facilities
for the warehousing of foreign and domestic good.s
at New York, it must eventually surpass in wealth.
in commerce and population any European  empo
rium, whilst as a necessary consequence  all our
our other cities and every portion ofthe Union, and
all our great interests, would derive corresponding
advantages.    Our merchants, as must  have   been
expected in any new enterprise, encountered some
difficulties in putting their first lines of steamships
into full and successful operation, but these obstacles.
they are rapidly overcoming.    They encountered
similar difficulties in the commencement of their
first line of packet ships, which .soon, however, out-
.stripped those of all other countries, and the same
success with a liberal governmental policy in the
outset of their good enterprise, will soon follow as
regards their ocean steamships.
In view of the rapidly augmenting trade between our ports on both Oceans, I recommend that an act be passed by Congress, under which all productr. and   fabrics   may   cross  the   Isthmus of  Panama, under the provisions of our recent most important treaty with New Grenada; that foreign goods may be ta'ken from our warehouses and landed iu our ports on either Ocean, or the Gulf in the same manner that goods nov.' warehoused in any port may be taken into, and re-warehoused in another. To  prevent frauds  upon  the  revenue,  it will  be necessary to provide for the appointment of Agents or Consuls to reside at Chagres and Panama, in the same manner as nov.' authorized by Congress in  regard to Chihuahua, under the act of 3d of iMarch, 1845.    Tf this should nol be done, our com¬ merce will be forced twelve thousand miles out ol its course, through the  long  voyage around  Cape Horn.     The  drawback of the  duties on f^Dreigii goods  exported  to   Chihuahua, by the   routes of Missouri, Arkansas and Red River, should be ex¬ tended to that by the Rio Grande, as well as to such other routes through Texas, as may be found safe and practicable; a port of entry should be e.?- tablished at the month of the Rio Grande, as well as at such other points on that river as may be necessary to guard our revenue laws from invasion on that frontier, and  to  secure   the   interior  trade  with Mexico.    The drawbacks of the duty should also be allowed on goods exported to Monterey and Sal tillo, and perhaps other important interior towns in Mexico, on the same considerations as are now ap¬ plicable to Chihuahua.    In recommending the re¬ gulations before referred to, for the transit of goods across the Isthmus of Panama, I would respectiully suggest the extension of the same privileges to the routes by the Mexican  Isthmus of Tehauntepec, by Lake Nicaragua, by the  Rio Ateato and San Janon, to go into effect whenever the same right oi transit can be obtained from ocean to ocean. Some if not all, of these routes may be traversed b)' rail roads, and may become important as well as that by Chagres and Panama, for our foreign and coast wise commerce betvveen the two great ocean?, as well as for the interior trade with IMexico,    New Grenada and Central  America, and the transit hy the Mexican  Isthmus would be highly advanta¬ geous to the whole country, but especially to the valley of the  Mississippi, and  its great depot, the city of Ne.v Orleans, so near the Pacific, by that new and important route.    In connection also with our supply of the precious  metals from the in¬ terior of these countries, as well as from Peru and Chili, and the transportation of our own gold and other minerals from California, these routes may all become useful.
The Collector ol San Diego should be authorized to appoint a deputy at some point in our territor}' as near as may be to the junction of the rivers Gila and Colorado, at the head ot the Gulf of Cali fornia, with a view to our future trade on that Gulf, as authorized by the recent treaty with IMex¬ ico, in connection with Lower California and the adjoining Mexican States ot Scnora and .Sanaloo, so rich in the precious metals, and containing the important ports of Guayamas and Mazatlan.
I review the recommendations heretofore made by me for reciprocal free trade between the Cana¬ das and the United States, on all articles of the growth, manulacture or production of either coun¬ try. I recommend, also, the passage of a law tendering a similar reciprocity to Mexico, It is known that the Canadas, with the consent of Great Britain, and it is believed New Brunswick also, adjoining New England, would cheerfully a.- cept this reciprocity. The advantage lo the Cana das would be great as well as to our ports on the Lakes, the St. Lawrence and the Atlantic, accom¬ panied by increased tolls and business on our in- terinediatp railroads and canals.
With our neighboring republic of IMexico, now revising her tarilF, so ricli in precious metals aud lye stuffs, and other raw material of manufactures
and the introduction there of our steamships, espe-, with whom it is our true interest to encourage tbe cially when private enterprise shall unite the ocean | most friendly relations, and reciprocal and unre by an isthmus route, would, as remarked in my strirted commerce, although she may not at once annual report of December, 1840, "revolutionize in ; enact a reciprocal statute, yet it is clearly her m- our favor the commerce of the world, and" more ! terest to do so, and with such an ofler standing upon rapitlly advance our greatness, wealth and power ; our statute book, it would receive the attention than any event which has occurred since the adop-; of that republic, and in time be adopted, and m.can tion of the constitution."' : while it would present to IMexico the best evidence
The same great subject was again referred to in ! of our anxious desire to maintain wilh her the my annual report of Dec, 1847, "as a new com-j most friendly relations, together with free and re mercial era,"' requiring "ocean steamers" in addi-1 ciprocal commerce and intercourse, tion to saiUng vessels, as connecting us "with | The Mexican tariff proposed by the department China," containing nearly one-third of the popula- \ and enforced by the Piesident of the U. States, tion of the globe. with a view to military contributions in  Mexico,
Our ports upon the Gulf, with those upon both added several milHons of dollars to our means Oceans, fronting upon Europe from the East and , during the recent contest, as well as aided the Asia from the West, occupying the central position   credit and loans of the  government.   It was a
between all the continents of the globe, nearer to them all by convenient routes than any other na¬ tion, including an easy access to the whole interior of our own country, we want only the ocean steam¬ ships of adequate strength, spee 1 and numbers, to i bu^odiminish "th7eviirand losses of wars bv en give us the command ol the trade ol all  nations. ' ¦ ,  . j
Nor should we forget  that in carrying our trade
new, but most salutary example set to billigerents in all future wars not to destroy their own com¬ merce and that of neutral and friendly powers, bv embargo and blockade of the ports of the enemy,
among the great and populous nations of Asia, and i facilitating intercourse with that vast region, pass¬ ing from coast to coast in the short period of twenty days, with monthly or weekly .steamships, the light of Christianity following the path of com¬ merce would return with all its blessings, to the East from which it rose.
In those regions commerce must be the preciir sor of Christianity, commerce, which teaches peace and intercourse betvveen nations, which declarts that rnan is not the enemy of man, nor nation of nation, but that the interests ofall countries and of all mankind are identical, and that they will all advance most rapidly under the general influence of an unrestricted reciprocal trade and intercourse. By our recent acquisitions on the Pacific, Asia has suddenly become our neighbor, with a placid inter¬ vening ocean, inviting our steamships upon a trade of commerce greater than that of all Europe com¬ bined. This commerce is ours, if onr merchant.? and government should, by their united energies, secure for us with Asia a rapid and frequent com¬ munication by steam. Our products and our man- ulactures, and especially our coarse cotton labrics, are precisely what are desired by several hundred millions oftheir people, who will send us back in return their specie, and their rich products, so few of which are raised within our limits. From our coast on the Pacific, as well as from the Gulf and Atlantic and the Isthmus route, we would be much nearer the coast of America, as well as Asia, than any European power, and with the best steamships, in adequate number, with the greater certainty of the voyages, ofthe period of arrival and departure, and economy of time and saving of interest, and with diminished cost of carriage, we would alter- nately supply the Western coast of America, as well as Asia, with our products and manufactures, on better terms than any European nation. We would in time receive the productions of the East in exchange, not only for our own consumption, but to be warehoused in our ports, as onterpots for the supply of Europe; and so lar as European fabrics should reach Asia and the AVestern coast of America, they would alternately pass cheaply through our hands as factors, and in onr vessels, events vvhich would very soon give us the command of the trade and specie of the world.
From these great eventsthe whole country would derive vast benefits, but especially the cily of New York; it would become the depot and storehouse and entrepot of the commerce of the  worM, the
I not only in the loss of interest, and m the less rapid | centre of business and exchanges, the clearing house
couraging our own commerce and that of the rest of the world with the enemy's ports, at more mod erate duties, at the same time devolving upon our enemy, in.stead of our own people, as large a por tion as practicable of the burthens and expenses of the contest, so as lo bring it to a speedv and honorable conclusion. This example, so favora¬ ble to national interest, mitigating so much the losses of war, substituting commerce instead oi embargo and blockade, was received with high satisfaction by all the powers with whom we are at peace, and is believed at the same time to have had no inconsiderable influence in accelerating the peace with Me.xico. This measure was a step in advance of the progress of commerce and civiliza-. tion. It was an example worthv to be set to all nations by the United States, and was so warmly approved by all countries, that if unfortunately for mankind wars .should hereafter occur, and es¬ pecially a general European war, the danger ot which was apprehended to De iinminent, this. American precedent would probably be adopted by other powers, leaving all porta of the enemy open to neutral commerce, and the consequent gain to our country incalculable. We should not only have gained the great principle for which we have so long contended, that firee ships make free goods, in trading with the ports of a neutral, when in her own possession, but we should also terminate the system of actual as well as paper blockades, and leave our commerce unintei- rupted in the ports of all the billigerents. This consideration is rendered more momentous by the fact that our future position, it is hoped in all time to come, will be that of a neutral, and thai as the result in part of our wonderful military power displayed in our recent glorious achieve¬ ments and unparalleled victories, as well as firom the development of our extraordinary moneyed resources, more than one hundred millions of dol¬ lars having been offered by our own capitalists at a premium, for a government six per cent, stock, upon advertisements for less than half of that sum, and shall be permitted to enjoy hereafter the bles¬ sings of uninterrupted peace with all the world.
Among the important results of that reduced Mexican tariff as prepared by this dcpertment 1= the light thrown by its operation.s upon the com¬ merce and revenue of Mexico and the demonstra¬ tion that both would be augmented by its provi¬ sions. So strong has been the efforts produced that a proposition to remove the prohibitions oa nearlv all  our  exports to -Mexico existing   under