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| call your particular attention, al 10. to that portion of the Secretary's report which has reference to the act of the late session of Con- gress which prohibited the transfer of any balance of appropriation from o,her heads of appropriation to that for building, equip ment and repair. The repeal of that prohi- bltlon will enable the Departmentto to gye re- hewes' employment to large class of work men who have been necessarily discharged Ill consequence of the want of means to pay 'hem-a circumstance attended, especially at thls season ot the year, with much priva- ton and suffering.

 It gives me great pain to announce to yon the loss of the sean ship s.The Missouri, by fire. in t,., bay of Gibraltar, where she had stopped to renew her supplies of coal, on her voyage to Alexandria with Mir. Cushing, the American Minister to China on board There is ground for high eommendation of the officers and men, for the eooness and intrep dy and perfect submission to discipline evinced un- der the most trying circumstances Surrounded by l raging fire which the utmost exertions could not subdue, and which threatened momentariiy the ex- piosio., of her well filled magazines the officers ey- hibited no signs of fear and the obeyed every order with alacrity Nor was she abandoned until the last gleain of hope of saving her had expired. It is we'll worthy of your consideration whether the loss sustained by the officers and crew in this unlor tunate affair should not be reimbursed to them

 I cannot take leave of this painful subject without adverting to the aid rendered upon the occasion by the British authorities at Gibraltar and the com mander, officers ard crew of the British ship of the line "rhe Malabar'' which was lying at the time in the bay. Every thing that generosity or humanity could dictate was promptly performed It is by such acts of good will by on, to another of the ia mly of nations, that iratcrnal feelings neurish ed, and the blessings of permanent peace secured. I The Report of the Postmaster General will bring you acquainted with the operations of that Depart- nent during the past year, and will suggest to you such notifications of the existing laws as in your opinion the exigeneies of the public service may re- quire. The change which the country has under gone of late years in the mode of travel and rans- portation, has afforded many facilities for the transmission of mail matter out of the regular mail, as to require the greatest vigilance and crcumspee- ton in order to enable the officer at the head of the Department to restrain the expenditures within the income There is also too much reason to fear that the fran<ing privilege has run into great abuse.-- The Department nevertheless has been conducted with the greatest vgor, and has attained at the least possible expense, all the useful objects for which it was established.

 In regard to all the Departments, am quite hap py in the belief that nothing has been left undons which was called for by true spirit of economy, or by system of accountability rigidly enforced.- This is in some degree apparent from the fact that the Government has sustained loss by the default of any of it's agents. In the complex but at the same time, beautiful machinery of our system of Government, 1t IS not matter of surprise that some remote agency may have failed for an instant to fulfil it's desired office but feel confident in the assertion that nothing has occurred to interrupt the harmonious action of the Government itself, and that while the laws have been executed with efI- ciency and vgor, the rights neither of States nor individuals have been trampled on disregarded

 In the meantime the country has been steadily ad- vancing in all that contributes to national greatness The tide of population continues unbroken 10 flow into the States and territories, where refuge is found not only for native born fellow citizens but for emigrants from all parts of the civilized world, who come to partake of the blessings of our free institutions, and to aid by their labor to swell 7 the current of our wealth and power.

 1t is due to every consideration of public policy that the lakes aud rivers of the West should receive all such attention at the hands of Congress as the Constitution will enable it to bestow. Works in fa- yorabe and proper situations the lakes would be found 10 be as ndispensabIv necessary in case of to carry safe and successful naval operations Notifications on the Atlantic sea-board. The ap- propration made by the last Congress for the in- proyement of the navigation of the Mississippi river, has been diligently and efficiently applied.

 cannot close this communication, gentlemen, without recommending to your most favorable con- sideration the interests of this District Appointed by the Constitution it's exclusive legislators, and forming in this particular the only anomaly in system of Government of the Legislative body being elected by others than those for whose advantage they o legslate, You will feel asuperadded ob- satio8 to !ook .ge into their condition and to leave no cause for complaint regret The seat of Go- vcrnment of our associated Republic cannot but be regarded worthy of your parental care.

 In connexion with it's other interests, as well as those of the whole country, recommend that at your present session you adopt such measures, in order to carry into effect the Smithsonian bequest, as in your judgment will be best calculated to con summate the liberal intent of the tesator.

 When, under dispensaon of Divine Providence, succeeded to the Presidential ofice the state of public affairs was embarrassing and critical To add to the irritation consequent upon long standing

 

 f of modern times, involving not only questions of boundary which under the most favorable circum- stances, are always embarrassing, but at the time important and high principles of maratime law border controversies between the citizens and sub lccts of the two countries had ehgehdered state of feeling and of conduct which threatened the most calanitous consequences. The hazards incident to this state of things were greatly heightened by the arrest and Imprisonment of subject of Great Bri- tain, who acting as i was alleged as a part of mi ltary force, had aided in the commission of an act volayc of the territorial jurisdiction of the United States, and involving the murder of citizen of the State of New York, large amount of claims against the Government of Mexico remained unad jnsted, and of several years continuance with the savage tribes of Florida still prevailed, attended with the desoation of a large portion of tha. beau tful territory, and with the sacrifice of many valua b!e lives. To increase the endorsements of the Government, individual and State credit had been nearly stricken down, and confidence in the Gene ral Government was so much impaired that loans of q small amount could only be negotiated at conside- rable sacrifice. As necessary consequence of the q blight which had fallen commerce and mechani- cal industry the ships Of the one were thrown out of employment and the operations of the other had been greatly diminished. Owing to the condition of the currency, exchanges between different parts of the country had become ruinously hgh and trade had 10 depend on deprecated paper currency in conducting its transactions. shall be permitted to congratulate the country that, under overriding Providence, psaee was preserved without sacrifice of the national honor the in Florida was brought to aspeedy termnation large portion of the claims [ on Mexico have been fully adjudicated and in course of payment while justice has been render ed to us in other matters by other nations; conf- dence between man and man is in great measure restored, and the credit of this Government fully and perfectly established. Commerce is becom- ing more and more extended in it's operations, and manufacturing and mechanical industry once more reap the rewards of skill and labor honestly applied. The operations of trade rest on sound currency, a.Jf of chape ff, fhoI