State of the Union | Page 6

herself
would be the greatest gainer by the opening of this communication
between the Gulf and the Pacific Ocean, it is presumed that she would
not hesitate to yield her aid in the manner proposed to accomplish an
improvement so important to her own best interests.
We have reason to hope that the proposed railroad across the Isthmus at
Panama will be successfully constructed under the protection of the late
treaty with New Granada, ratified and exchanged by my predecessor on
the 10th day of June, 1848, which guarantees the perfect neutrality of
the Isthmus and the rights of sovereignty and property of New Granada
over that territory, "with a view that the free transit from ocean to ocean
may not be interrupted or embarrassed" during the existence of the
treaty. It is our policy to encourage every practicable route across the
isthmus which connects North and South America, either by railroad or
canal, which the energy and enterprise of our citizens may induce them
to complete, and I consider it obligatory upon me to adopt that policy,
especially in consequence of the absolute necessity of facilitating
intercourse with our possessions on the Pacific.
The position of the Sandwich Islands with reference to the territory of
the United States on the Pacific, the success of our persevering and
benevolent citizens who have repaired to that remote quarter in

Christianizing the natives and inducing them to adopt a system of
government and laws suited to their capacity and wants, and the use
made by our numerous whale ships of the harbors of the islands as
places of resort for obtaining refreshments and repairs all combine to
render their destiny peculiarly interesting to us. It is our duty to
encourage the authorities of those islands in their efforts to improve
and elevate the moral and political condition of the inhabitants, and we
should make reasonable allowances for the difficulties inseparable from
this task. We desire that the islands may maintain their independence
and that other nations should concur with us in this sentiment. We
could in no event be indifferent to their passing under the dominion of
any other power. The principal commercial states have in this a
common interest, and it is to be hoped that no one of them will attempt
to interpose obstacles to the entire independence of the islands.
The receipts into the Treasury for the fiscal year ending on the 30th of
June last were, in cash, $48,830,097.50, and in Treasury notes funded
$10,833,000, making an aggregate of $59,663,097.50; and the
expenditures for the same time were, in cash, $46,798,667.82, and in
Treasury notes funded $10,833,000, making an aggregate of
$57,631,667.82.
The accounts and estimates which will be submitted to Congress in the
report of the Secretary of the Treasury show that there will probably be
a deficit occasioned by the expenses of the Mexican War and treaty on
the 1st day of July next of $5,828,121.66, and on the 1st day of July,
1851, of $10,547,092.73, making in the whole a probable deficit to be
provided for of $16,375,214.39. The extraordinary expenses of the war
with Mexico and the purchase of California and New Mexico exceed in
amount this deficit, together with the loans heretofore made for those
objects. I therefore recommend that authority be given to borrow what
ever sum may be necessary to cover that deficit. I recommend the
observance of strict economy in the appropriation and expenditure of
public money.
I recommend a revision of the existing tariff and its adjustment on a
basis which may augment the revenue. I do not doubt the right or duty
of Congress to encourage domestic industry, which is the great source
of national as well as individual wealth and prosperity. I look to the
wisdom and patriotism of Congress for the adoption of a system which

may place home labor at last on a sure and permanent footing and by
due encouragement of manufactures give a new and increased stimulus
to agriculture and promote the development of our vast resources and
the extension of our commerce. Believing that to the attainment of
these ends, as well as the necessary augmentation of the revenue and
the prevention of frauds, a system of specific duties is best adapted, I
strongly recommend to Congress the adoption of that system, fixing the
duties at rates high enough to afford substantial and sufficient
encouragement to our own industry and at the same time so adjusted as
to insure stability.
The question of the continuance of the subtreasury system is
respectfully submitted to the wisdom of Congress. If continued,
important modifications of it appear to be indispensable.
For further details and views on the above and other matters connected
with commerce, the finances, and revenue I refer to the report of the
Secretary of