to the federal domain, as an indemnity, increasing its area 50 per cent., and its mineral and commercial resources in an almost limitless degree. These have been the extraordinary results of the first foreign war of the Republic, and they have been attained at a very moderate increase of debt, and without in any degree disturbing the course of commerce, or the progress of the national industry. It is not alone in mere glory that this formidable display of strength is valuable; it is a guarantee that no nation will henceforth wantonly provoke a power so irresistible in its exercise. No government will again presume upon a weakness, manifest only in the absence of a standing army, or infer an easy victory over a people untrained to war. The indomitable valor of the troops in the campaign of Buena Vista, and the skilful generalship in that of Mexico, are qualities that are easily appreciated. While our unsought military triumphs have been the most brilliant, and the conquests of territory the most marked points of the administration, they are, perhaps, of less real importance, and will be regarded by the statesman, the economist and the philanthropist with less satisfaction, than the establishment of sound commercial and financial principles, accompanied by a considerable step towards their practical exposition. In almost every branch of government, in diplomacy, in commerce, in finance and in civil progress, advance has been apparent. --- The leading measure of the past four years may be thus enumerated :1. The Oregon boundary treaty, definitively marking the claims of England upon this continent for the first time since our independence. 2. Treaties of commerce with New Granada, Peru, the Two Sicilies, Belgium, Hanover, Oldenburg, Mecklenburg Schwerin, Saxony and Nassau, opening the way to an extension of our commerce with interior Germany; and also the postal treaty with Great Britain. 3. The Mexican treaty, by which California and New Mexico were acquired. 4. The admission of four new States-Texas, Florida, Iowa and Wisconsin-into the Union, and the erection of Oregon into a Territory. 5. The abandonment of the "protective principle," which has haunted our tariff laws, boding evil to our national industry for thirty years; and the establishment of the revenue ad valorem principle, by which the credit of the country has been restored, and the revenue, which had been deficient from 1837 to 1845, raised to the current expenditure. 6. The establishment of a ware-house system, of a nature similar to that which in England has drawn the carrying trade ofthe world into British harbors, and by which a renewed impulse is given to those causes irresistibly in operation to draw Canada peacefully into the Union. 7. The separation of bank and state, and the establishment and successful opperation of the constitutional treasury plan of finance. 8. The commencement of ocean steam navigation to Bremen and California. 9. The establishment of cheap postage. Each and all of these important measures have had a direct tendency to enlarge the area of the country, multiply its resources, promote the interchange of its products, and to enhance its general prosperity, by removing those injurious restrictions which tend to prevent every producer from disposing of the results of his industry to the best advantage. How the country at large, as well as every department of the Federal and State finances, and the condition of corporate companies, has improved, under the genial înAuence of these measures, is manifest in the fact of enhanced dividends, resumption of payments, rising credit and growing surpluses, with so manifest an increase of the capital of the country as to indicate a permanent reduction in the rent paid for its use. No better proof of the great prospe rity of the country can be adduced than the fact that, for the first time in our commercial history, a revulsion in England, unrivalled in severity, has expended its force in the last two years, without making itself felt at all upon this side of the Atlantic. The progress of our treaties with the other powers of the earth, is a gratifying instance of the consideration to which the country has risen. When the United States had successfully thrown off the yoke of England, they formed a government based on new and untried principles. The sole object of government was avowed to be the protection of the people at large, and to guarantee that every man should enjoy in peace the fruits of his own industry, on a footing of perfect equality, socially and politically. All power was admitted to rest with the people; the federal government possessing no authority, save that which was expressly granted in the instrument which gave it being. The powers derived by the government from a constitution matured after long and anxious deliberations by the founders of the Union, in the memorable Congress of 1776, were specified and clearly defined, being such as confined its relations with foreign countries very nearly, if not quite, to commercial subjects. These circumstances caused the foreign policy of the government to be different from that of any of the existing nations of the earth. After the settlement of territorial limits, the manner, mode, and terms of international commerce came to be almost the exclusive subject of treaties with foreign countries. As a republican Union could have nothing in common with the general policy of monarchical governments, and was likely to encounter nothing but hostility, until the importance of its commerce should command the attention of Europe, it followed that there was little danger of "entangling alliances" in other respects, than in granting special commercial advantages to one nation, to the exclusion of others. A nation of energetic and enterprising people were just emancipated from the colonial state, and were looking round upon a world suddenly opened to their commercial enterprise. Instead of struggling in the bonds of selfish imperial regulations, the nation found itself raised to political equality with all others, but debarred from their intercourse on all sides by their restrictive system. In every direction, absurd interdictions met the American merchant. His commerce, which hitherto had been confined to the mother country, was cut off even from that by the operation of the British navigation laws, which took effect against the states the moment they ceased to be colonies. Those laws, which had been in being for 150 years, had practically never been in operation. The principle of the law was, in brief, that there should be imported into Great Britain no goods, the produce of Asia, Africa, or America, except in British vessels; and goods imported from Europe in vessels of the continent were subjected to higher rates of duties than were laid on those imported in British vessels. It is evident that, down to the independence of the United States, these provisious of the navigation act were a dead letter; because, in the three quarters of the world whence foreign shipping was interdicted, there was no shipping owned except by British subjects. Those built within the colonies had all the privileges of vessels built in England; and, as the Spanish and Portuguese colonies, and the nations of India, had neither vessels, nor means of building them, those of England would have met with no competition, had there been no navigation act, which came first practically into operation when the independence of the Used States was acknowledged; and, as soon as it produced an influence upon trade, its fate was sealed. As respects the United States, it re quired a commercial treaty to modify the operation of the act in their regard. To enter generally into the commerce of the world, it became necessary to acquire the right by treaty, as the natural right had been destroyed by artificial restrictions. The great rivers of Europe-those channels of communication formed by nature to promote trade between neighboring countries, as well as to connect distant nations with the ocean, and through it, with remote climes-were rendered as impassable by hostile laws as if their channels presented natural difficulties to navigation. The United States, a young country, with but little shipping and less capital, distributed among a sparse population, had little to offer in return for the facilities they asked. They demanded that European nations should throw aside the exclusive policy hitherto pursued, and allow United States vessels to visit their wealthy cities, in return for the privilege of sending their vessels to our comparatively poor and unattractive towns. In a republican government, an equal distribution of wealth, and the promotion of the general welfare, in a uniform degree, being the object, trade and commerce, rather than war and glory, are the means to obtain them. It became, therefore, at the formation of the government, a matter of as much importance to fix a rule of intercourse with all foreign nations, as to define the internal policy of the federal government. The same men who brought so much wisdom to the construction of our constitution, considered as anxiously the true principles of fair commercial negotiations between independent states. These principles were, independence, equal favor, and reciprocity, and were laid down and proclaimed to the world for the first time in the diplomatic history of nations, in the preamble to the Treaty of France, February 6, 1778, which was annulled by act of Congress in 1798, for repeated violations on the part of France. That treaty was the foundation of our commercial intercourse, and bore the same relation to our foreign policy that the Declaration of Independence did to our internal government; and it has formed the basis of all subsequent treaties.* As the policy of all monarchial governments is to concentrate great revenues in the hands of the central power, in order that profuse expendi * TREATY BETWEEN FRANCE AND THE UNITED STATES. "The United States, willing to fix, in an equitable and permanent manner, the rules which ought to be followed relative to the correspondence and commerce which the two parties desire to establish between their respective countries, states, and subjects, His Most Christian subjects and said United States, have judged that the said end could not be better attained than by taking, for the basis of their agreement, the most perfect equality and reciprocity, and by carefully avoiding all those burdensome preferences which are usually sources of debate, embarrassment, and discoutent; by leaving, also, each party at liberty to make, respecting commerce and navigation, these interior regulations which it shall find most convenient to itself; and by founding the advantages of commerce solely upon reciprocal utility, and the just rules of free intercourse; reserving, withal, to each party, the liberty of admitting, at its pleasure, other nations to a participation of the same advantages. It is in the spirit of his intention, and to fulfil these views, that certain negotiators were appointed-" &c. &c. Art. 1. There shall be firm, inviolable, and perfect peace, &c. Art. 2. The parties mutually agree not to grant any particular favor to other nations, in respect of commerce and navigation, which shall not immediately become common to the other party, who shall enjoy the same favor, freely, if the concession was freely made, or on allowing the same compensation, if the concession was conditional. Art. 3. No greater duty or impost shall be levied, under any circumstances, upon the subjects of either country, than those of the most favored nation; and the citizens of each shall enjoy all the rights, privileges, &c., that are enjoyed by those of the most favored nation. ture may enlarge the circle of imperial influence, and extend the patronage of the crown, so does occasional war and large armies become a part of the general system of such governments. The many are to be kept poor to support the few in affluence, and sustain the strength of the govern ment. It becomes a consequence of such a system, that the people at large must neither in war nor peace, acquire wealth faster than it can be absorbed into the hands of the government. The policy of such governments has, therefore, ever been to discourage, under the pretext of "protection," all industry that does not throw its profits into the hands of a few individuals, manageable by the crown. Through taxation the general wealth must flow concentratively into the lap of the executive, and from it, in uninterrupted and corrupt channels, through all official action, down to the lowest officials. The late government of France was a melancholy picture of this system of corruption. Thus, the customs department supported 31,400 officials, at an expense of 37,000,000 of francs per annum; and they collected 110,000,000 francs, under a rigid system of restriction, which, if modified to that of England, would probably employ but 6,000, instead of 31,400 persons: but, by cheapening the articles purchased by the people, industry would return a better reward; an amelioration would tend to raise their condition, while it weakened the government by diminishing the means of its corruption. When peace was declared, Congress did not condescend to ask treaties of foreign powers acknowledging the independence of the Union; but, as related by Mr. Jefferson, in a letter to Mr. Adams "Were willing, by some of the ordinary international transactions, to receive what would imply that acknowledgment. They appointed commissioners, therefore, to propose treaties of commerce to the principal nations of Europe. I was then a member of Congress; was of the committee appointed to prepare the instructions to the commissioners; was, as you suppose, the draughtsman of those actually agreed to, and was joined by your father and Dr. Franklin to carry them into execution. But the stipulations making part of these instructions, which respected privateering, blockades, contraband, and freedom of the fisheries, were not original conceptions of mine. They had before been suggested by Dr. Frankin, in some of his papers in possession of the public, and had, I think, been recommended in some letters of his to Congress. I happen only to have been the inserter of them in the first public act, which gave the formal sanction of a public authority. We accordingly proposed our treaties, containing these stipulations, to the principal governments of Europe. But we were then just emerged from a subordinate condition; the nations had, as yet, known nothing of us, and had not yet reflected on the relations which it might be to their interests to establish with us. Most of them, therefore, listened to our proposals with coyness and reserve; Old Frederick alone closing with us without any hesitation. The negotiator of Portugal, indeed, signed a treaty with us, which his government did not ratify; and Tuscany was near a final agreement. Becoming sensible, however, ourselves, that we should do nothing with the greater powers, we thought it better not to hamper our country with engagements to those of less significance, and suffered our powers to expire without closing any other negotiation. Austria soon after became desirous of a treaty with us, and her ambassador pressed it often upon me; but, our commerce with her being no object, I evaded his repeated invitations. Had these governments been then apprised of the station we should so soon occupy among nations, all, I believe, would have met us promptly, and with frankness. These principles would then have been established with all; and, from being the conventional law with us alone, would have slid into their engagements with all, and become general." The United States thus took the lead in commercial negotiation, although they may not lay claim to the paternity of a system which had its origin in the Congress of Utrecht-an era remarkable in commercial history for the enlightened views and liberal regulations then embodied in treaty stipulations. Although France was the first to recognise us as a nation we have made less progress with her, in a commercial way, than with most other nations, if we except Spain, that wretched abode of despotism and desolation. The present administration has enlarged the circle of American influence in Europe, more than has been effected in any similar period of our existence, and there now exist 42 treaties between the United States and foreign countries; of these 39 are treaties of reciprocity, containing the "favored nation clause," which stipulates that any concession to one shall be enjoyed by all others, freely, if the concession is made freely, and upon paying the same equivalent, if compensation is stipulated. The great emigration which has taken place between the nations of Europe and the United States, has transferred to the United States a great number of useful citizens, and a considerable amount of property. It has also closely connected the descents of property in the United States with persons in Germany, and, vice versa, a great number of the citizens of the United States inherit property in the countries of Europe. This has given rise to a new class of treaties, particularly with those nations which, remotely situate from the sea, have no occasion for commercial treaties. The first treaty with the Netherlands, in 1782, embraced a clause to remove the duties on the property of emigrants, and to allow the citizens of the United States to inherit property in the Netherlands, without first obtaining letters of naturalization. A similar clause was contained in the first French treaty. This was a wise and liberal provision, and did great credit to the foresight of the negotiators. As the country advanced, and the intercourse became more extended among the citizens of the new and old world, the necessity of extending these provisions to other nations became more urgent. As an instance, it may be remarked, that the kingdom of Bavaria contained, in 1837, 4,315,369 inhabitants; and the emigration from it, in four years, ending with 1839, was 24,507 souls, of whom 23,978 went to the United States. The Bavarian government levied a heavy tax on the money and property carried away, and the amount ascertained as so taxed, was 7,000,000 guilders, or $2,800,000, and was estimated to be about half the actual sum, as a great deal was concealed to avoid the tax. In the other countries of Germany, similar taxes prevailed. With nine of these German states new treaties have been now enacted, abolishing the duty on property inherited by aliens, and upon property conveyed out of the country. Thus gradually has the United States been enabled to bring the countries of Europe towards it, by a successful policy, which, as we have seen, has much progressed in the last four years. From a system of strict exclusion at the close of the last century, England has, under the influence, direct and indirect, of the United States' policy, modified her navigation laws, her colonial laws, her commercial laws, and having now abandoned her corn laws and established a reciprocal postal intercourse, is about to abandon her navigation act, and must soon relinquish her colonies. The speech from the British throne, February 1st, on the day the corn laws ceased to act, contained the following paragraph: |