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 A treaty of Amity and Commerce has been formed with the Republic of Chilli which, if approved by the Senate, will be laid before you. That goyerumeta seems to be established, and at peace with it's neighbors; and its ports being tn c rsesorts of our ships which are employed in the highly important trade of the fisheries, this commercial convention cannot but beeoi great advantage 10 our fellow citizens en- gaged in that perilous but profitable busi- ness.

 Our commerce with fhe neighboring Slate of Peru, owlEg to the operons du-s ties levied oil our principal articles of ex- port, has been on the decline, and all en- deaYoTs to procure an alteration, have hitlerto proved frnit!ess. With FollYla, wesl,ave yet no diplomatic intcrcourse, and the continual contests carried on between it and Peru have made me defer, until a more favorable period, the appointsncnt of san agent for that purpose.

 An act of atrociors piracy having been. committed on one of our trading ships by the inhabitants ofa settlement on the west coast of Sumatra, afrigafc was despatch- cd with orders to demand satisfaction for tlfe injury, if those who committed II should be found members of regular go- vernment, capable Of maintaining the usu. al relations with foreign nations; but If, as II was supposed, and as they proved 10 be. they were a band of lawless pirates, to infiict such q chastisem cnt as would de- ter them and others from like aggressIens. This last was done, and tue effect las been an increased respect fer our flag m. those distant seas, and additional security for eur commerce.

 4L ton with foreign powers, aliusions have been made to their domestic disturbances or foreign wars, to their revolutions or dissentions. Itgnay be proper to observe, that tEiisae done solely in eases where those events affect our political relations wsth them, or 10 show their operations on our commerce.. Further than this, 1t IS snei- ther our policy nor our right 10 interfere. Our best wishes onsail occasions, our good offices whes required, will De afforded, 10 promote tire domestic tranquility aad for seign peace of all nations with whom we have any intercourse. Any intervention in tileir affairs further than this, even by tic ex precision of an<oiaieia| opinion. Is contrary to our principles ofintes-national policy, and will always be eayoided.

 Isilc report which the Secretary of the treasury viii, n due time, lay before you, will exhibit tie national finances n. highly prosperous state. Owing to fiie- continued success of our commercial en- terprize, which has enabled the merchants to fulfil their engagements with the go- syernment, the receipts from enstcEts du- ring the year, will exceed the estimate presented al the last session and with the other means of tlie Treasury, will. prove fully adequate, not only to meetthe 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 redeeina- b!e. It is now estimated that the customs will yield to the Treasury. during the pre- sent year, upwards of twenty eight mil lions of dollars. The public laDds, how ever, have proved less productive than was anticlpated and according to present in- formation, will fall short of two millions. The expend itures forailo objects6 her than. the public debt, are estimated to amount, during the year, 10 about sixteen mIlllons, while still larger sum, viz: eighteen. millions of dollars, will have been applied to the principal and interest ofthe public debt.

 It is expected, however, that in conse- quence Of ihe reduced rates ofduty which wiii take ofcct.aher tie 3d of sss'arch Bexl, :, there will 5e :, considerable failing oil Tn

 

 It@ill, nevertheless be amply sufficient 10 provide for all the wants of tlc public service, estimated even upon liberal scale, and for tho redemption and pur \ chase of the remainder of ti,e public debt.. On the first of January next, the -entifes public debt of the United States, fintcd and unfunded, will be reduced to within a fraction of seven millions of dollars; of which g .25! aG::ss are net Of right redeem able nntiI the first of January, 1885 and sS4, 735, ,29G, not untilthc second of fJanua-s .ry, 1886 RThe commissioners of the sink ing fund, however,. being invested with full authority 10 purchase the debt al the market price, and the meanssof the Trea- s,,ry being ample, it may be hoped, that. the whole will be extinguishedwithin the year 1853.

 Icannot too earnestly congratulate Con- gress and my fellow citizens on the near approach of that memorable and happy event, the extinction of the public debt ofthis great and free nation Faitllfill io the wise and patriotic policy marked out, by tic Legislation of the country for this object, the present administration has q C. voted 10 it all tIae means which a holrisl- ing commerce has supplied, and a prudent economy preserved, for thepnbllc irea- sury. Within the four yearszf for v cb the people have conEded the Executive power to my charge, fifty -eigbt miIIions of dol lars will have been applied to the payment of tho public debt. That tliIsshas been accomplished without stintmg thesexpen- fditnres Of all other proper obj ects, will be seen by referring tothe liberal provisions ! made during tie same period for tte sup port and increase of our means, of our maritime and military defence, for inter- 1 nal Improvements of a national character, 1 for the removaland preservation of the iD- l dians. and lastly, for the gallant veterans