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 by the whole world.

 That the reduced production of some the chief ar

 cles food In Britain and other parts of Enrupe

 may have contributed 10 increase the demand for bread stuf and provisions Is not doubted but that the great snd efficient canse 0 hs increased demand and or increaseh prices consists In the renova of artificial restrictions heretofore imposed Is deeInad o be equally certain That export, offood already Increased and increasing be Yond former example, under the more hberal policy which hns adopted will he sill vastly enlageh un

 less they be checked prevented hy restoration Of the protective policy cannot be donbled. That eonmer rta and navigating interests will be enlarged In cores

 ondiug ratio with the increase of our Trade Is equally certain; while manufacturing interests will sll be

 favored interests of ths country and receive the incl

 dental protection afforded theni by revenue duIies and more than this they cannot justly demand

 In my annual message of December last, lariii of revenue dues bast upon the principles oi the exist l ing law was recommended and have no reason to change the opinions then expressed. In view of the probable beneficial effects of that law re- commend that the policy established by il be

 maintained It has Lut st commenced to operate: and to abandon modify il without giving it fair trial Iwoud be inexpedient and uuwise. Should de

 ects in any of it's details be ascerainsd by actual perence 10 exi-l, these m hereafter be correctedi bnt until such defects shall become manifest the act l should be fairly tested.

 l IL is submi ted for your consideration whether it may not be proper, measure impose venue duties some of tneaIticas embraced in the free list. Should il be deemed proper to impose such duties with view to raise to meet the expenses ofthe war with Mexico or avoid that extent the creation ot public deh they may be re- pealed when the emergency which gave rise to them shall to ex and constitute pat of the per manent policy of the country.

 The of the sixth of August last "to provide for the better organiz the treasury and for the col lection ekeepiug transicr and disbursement ot the public ievenue" has been earned into execution as rapidly the delay necessarily arising out of the ap poutmen ot new officers, taking and approving their bonds and preparing and securing proper places for | the safe keeping of he public pss great measure IS

 Il is not proposed to defects in the details or the measure, yeloped by it's practical oporaton which are fully set forth in the repo of the Secretary of the Treasury which the attention of Congressis invited These defects would impair to some extent the successful operation of the law at all times but l are especially embarrassing when the country is gagged In war, when the expenditures are greatly increased, when loans to be effected, and the d.s bursemenis to be made at points many hundred miles distant in cases from any depository, and a large portion of then. in foreign country The mod fcalions suggested in the report of the Secreaey of the Treasury recommended your ia avorabe consideration.

 In connexon with his subject, invite your atten- ton to the importance of establishing branch of the mint of the United States at aw York. Two thirds of the revenue derived from customs being collect ted at that point the demand for specie pay he du. ties will h. large; and branch mint, where foreign coin and bullion could be immediately converted inlo American coin, would greatly facilitate the transac- Ii In of the public business enlarge the circulation of gold and silver, and be, al the same time. safe de- posiiory the public money

 The importance of graduating and reducing the price of such of the public lands have been long offered in the market. al the minimum authorized by existing laws, and remain unsold, induces me again recommend the subject your favorable ron- sderation Many millions of acres ofthese lands have been offered in the market for than thirty years and larger quantities for than ten or twenty years and being of inferior quality they must re- main unsaeabe for an indefinite period. unless the price at which they may be purchased shall be reduc- ed. To place price upon them above their real value Is not only 10 preven their sale, and thereby deprive the Ire asnry of any income from that source but is un the States in which they e because reiards their growth md increase of population and because they have no power 0 levy tax upon them upon other lands within their limits, held by other proPrietors than the United States, for the support of their local governments.

 The beneficial effects of tue graduation principle have been realized by of lhe States owning the lands within their limits, in which il has been adopted. They have been demonstrated also by the United States acting the trustee of the Chckasaw tribe of Indians in the sale of their lands lying whin the states of Mississippi and Alabama. The Chckasaw lands, which would not command in the market the minimum price established by the laws the United States for the sale of their lands were in pursuance of the treaty of 1854, with that tribe, subsequently offered for sale at graduated and reduced raies for limited periods. The-result wss that large quantities of these lands were purchased which would other wise have remained unsold. The lands were dispos- ed of at their real value, and many persons of limited means were enabled to purchase sinaH tfnctS, upon which they have settled wlhtheir fanes That siini- lar results wonld be produced by the adoption of the graduation policy by the United States, in all he States in which they are the owners of large bodies of lands which have been long in tue mark cannot be doubted. It cannot be a sound policy to withho Id large quantities of the public lands from the and occupation of our citizens, by fixing upon them prices which experience has shown they will not command. On the contrary it IS wise policy to afford facilities to our citizens become the owners low and moder- ate rates of freeholds of their owu instead of being the tenants and dependents of others. If be appre hended that these lands, if reduced in price, would he secured in large quantities by spectators or capital sts the sales may be restricted in mle quantities, actual settlers or persons purchasing for purposes of cultivation.

 In my last annual message submitted for the con sideraton of Congress the present system of nanag ing the mnera lands uf the United States, and re- commended that they should be brought into market aud sod upon such terms and under such restrictions as Congress might prescribe. By the act ofthe elev enh of July last, "the reserved lead mines and con tiguous lands in the States of Illinois and Arkansas, and Territories of Wis onsin and Iowa." were thorized 10 be sold The act is confined, in it's ope- ration, to lead mines and contiguous lands"

 A large portion Of the public lands containing cop per and other is represented to be very valuable. and recommend that provision be made auth lrizng the sale of these lands. upon such terms and cond tions ,her supposed value may in the judgment of Congress, be deemed advisable having due regard to the interests of such of citizens as may be loca be located upon them.

 It will be important during your present session to establish territorial government and to extend the jurisdiction and laws of the United States the territory of Oregon. Our laws regulating trade and intercourse with the Indian tribes east of the Rocky Mountains should be extended the Pacific ocean, and for the purpose of executing hem and preserving friendly relations with the Indian tribes within limits, additional number of Indian agencies will be required, aud should be authorized by law. The establishment of custom-houses and of pr st ces and and for the of fle ma il on such route as the public convenience will sug gest require legislature authority It will be proper to establish asurveyor generals office in thatTerrery. and to make the necessary provision tor surveying the public lands and bring them into market. As our citizens who now reside in that distant region have been subjected to many hardshps pri, ations and sa erifces in their emigration, and by their improve ments have enhanced the value of the public lands in the neigh orhood of their settlements, it is mended thnt liberal grants be made to them Of such portions of those lands they may occupy, and that similar grants rights of pre-emplion be made to all who may emgrale thther within limited period, to be prescribed by law

 The report ofthe Secretary cf War contains deiail ed information relative the several branches of the public services connected with that department. The operations cf tho army have been of satisfactory and highly gratifying character.

 recommend to your rly and favorable consider aton the proposed by the Secretary of War for speedily filling up ihe rank and file of the regular army for it's greater efficiency in the held, anal for raising additional force to during the war with Mexico.

 Embarrassment is likely arise for want of legal provision ithorizng compensation to be made to the agents employed in the seyeral States and Territories pay the revolutionary and other pensioners the l amounts lowed them by law. Your attention is in- vited the recommendations of the Secretary of War this subject These agents incur heavy responsi- biliiies and perform important duiies and reason exists why they should not be placed on the same footing as to compensation with other disbursing off