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which separates us from that Republic. The
Commissioners Of both Governments met in New
Orleans in August last The joint commission
was organized, and adjourned to convene at the
same place on the twelfth of October 1t is pre-
sumed to be now in the performance of its du-
ties.


The new Government of Texas has shown


its desire to cultivate friendly relations with US.
by prompt reparaton for njuries complained
OF In the of two vessels ofthe United States


With Central America a convention has been
concluded for the renewal of its former treaty
with the United States. This was not ratified
before the departure of our late Charged AZ


fairs from that country and the copy of it brought
by him was not received before the adjournment
of the Senate at the last session. In the mean
while. the period limited for the exchange of ra-
ti6cations having expired, deemed it expedent,
in consequence Of the death of the Charge c'AE
fairs, to send a special agent to Central Ameri-
ca to close the affairs Of our mission there and
to arrange with the Government an extension
of the timefo the exchange of rati6cations. |
| The commission created by the States which |
formerly composed the Republic of Columbia,
for adjusting the claims against that Government,
has, by very unexpected construction of the |
treaty under which it acts, decided that no pro- |
vision was made for those CLAIMS of citizens of |
| tae United States which arose from captures by |
Columbian privateers, and were adjudged a.
gainst the claimants in the judicial tribunals
This decision will compel the United States to
apply 10 the several Governments formerly uni
| ted for redress With all these-New Grana-
da, Venezuela, and Ecuador, perfectly good
understanding exists. Our treaty with Vene-
zuela is faithfully carried into execution, and
that country, in the enjoyment of tranquility is
gradually advancing in prosperity under the gui-
dance OF its present distinguished President. &C.
neral Paez. With Ecuador, liberal CONNER
cal convention has lately been concluded, which
will be transmitted to the Senate at an early day.


With the great American Empire OF Brazil
our relations continue unchanged, does our
| friendly intercourse with the other Governments
of South America-the Argentine Republic
and the Republics Of Uruguay, Chill Peru and
Bolivia The dissolution of the Peru Bolivian
Confederation may occasion some temporary in
convenience to our citizens in that quarter, but
the obligations on the new Governments which
have arisen out Of that Confederation to observe
its treaty stipulation, will no doubt be soon un-
derstood and it is presumed that no indispos-
ton will exist to fulfil those which it contracted
with the United States


The financial operations Of the Government
during the present year have, am happy to say.
| been verv successful. The difficulties under
which the Treasury Department has labored
from known defects in the existing laws relative
to the safe keeping of the public moneys, aggra
waited by the suspension Of specie payments by
several of the banks holding public deposites. or
indebted 10 public officers for notes received in
payment of public dues, have been surmounted
to a very gratifying extent. The large current
expenditures have been punctua!iy met, and the
faith of the Government in all its pecuniary con-
Germs has been scrupulously maintained.


The nineteen millions of Treasury notes nu-
thorized by the act of Congress of 1887, and the
notifications thereof, with view 10 the ndul-
gence of merchants on their duty bonds, and of
the Gepose banks in the payment of public mo-
news held by them, have been so punctually re-
deemed as to leave less than the original ten mil
lions outstanding at any one time, and the whole
amount unredeemed now falls short OF three mil
lions Of these the chief portion is not due till
next year. and the whole would have been al
ready extnguished could the Treasury have rea-
iizpd the payments due to it from the banks. II
those due from them during the next year shall
be punctually made, and if Congress shall keep
the appropriations within the estimates, there is
every reason to believe that all the outstanding
Treasury notes can be redeemed, and the ordi-
nary expenses betrayed, without imposing on the
people any additional burden, either of loans or
increased taxes.


To avoid this, and to keep the expenditures
within reasonable bounds, is duty, second only
in importance to preservation of our national
character, and the protection OF our citizens in
their civil and political rights. The creation, In
time Of peace, of debt likely TO become per-
manent, is an evil for which there is no equiva-
lent The rapidity with which many OF the
States are apparently approaching to this con-
dtion, admonishes of own duties, in
manner too impressive to be disregarded. One,
not the least important, is to keep the Federal
Government always in condition to discharge,
with ease and vigor. its highest functions, should
their exercise be required by any sudden con-
juncture of public affairs-a condition to which
we are always exposed and which may occur
when it is least expected To this end, it is in
dispensabIe that It's finances should be untram-
ineled, and its resources. as far as practicable,
unincumbered. No Circumstance could present
greater obstacles to the mpshment of these
vitality important objects, than the creation of an
onerous national debt. Our own experience
and also that of other nations have demonstra-
ted the unavoidable and fearful rapidly with
which public debt is increased when the Gov
ernment has once surrendered ltselfto the ruinous
practice Of supplying its supposed necessities by
new loans The struggle, therefore, on our part
to be successful. must be made at the threshold
To make our efforts effective, severe economy