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fay On this subject and also III regard 10 the eStaD- lishment of additional military posts in the Indian countrY, entitled to your profound considerations Bah measures are necessary for the double purpose of protecting the Indians from intestine war, and n other respects complying with our engagements to taem and of securing our western frontier against incursions which otherwise will assuredly be made on if. The best hopes humanity, in regard to the aboriginal race, the welfare of our rapidly extending settlements, and the honor of the United States all deeply involved in the relations existing between this government and he emigrating tribes. trust, therefore that the Far- ous matters submitted in the accompanying documents, in respect 10 those relations, will receive your early and mature deliberations and that 1t may issue in the adoption of legislative adapted 10 the ctFcu stances and duties of the present crisis.

 You referred to the report of the Secretary ot the Navy for satisfactory view of the operations of tho department under his charge, during the present year. fn the construction of vessels at the different navy yards and in the employment of our ships and squad Fons at sea- that branch of the service has been active ay and usefuy employed. While the situation of our commercial interests i'll the West Indies required

 greater number than usual of armed vessels to be kept son that station, is gratifying to perceive that the pro- aection due to commerce Tn other quarters of the world has not proved insufficient. Every effort has been made facilitate the equipment of the exploring expedition, authorized by the act of the last session, but all the preparation necessary to enable sail has not yet been completed. N 0 means will be spared by the government fit out the expedition on scale cor responding with the liberal appropriation for the pur- pose, and with the elevated character of the objects which are to be effected by it.

 beg leave to renew the recommendation made in my last annual message, respecting the enlistment of boys in naval service, and urge upon your aten- ton the necessity of farther appropriations to increase the number of ships aoat and 10 enlarge generaliythe capacity and force of the navy The increase o our commerce. and our position in regard to the other powers of the world will always make 1t out policy cherish racanreas of o,r country.

 The report of the postmaster general presents a gratifying picture of the condition of the post-office de- parment. It's revenues for the year ending the 30th of June last, ,456 l9, showing an increase of revenue over that of the preceding year of S404, S7S,63 or more than B per cent. The expenditures for the same year were S2,755,623 76, exhibiting surplus of S642,S3l 43. The department has been redeemed from embarrassment and debt, has accHmu- lated surplus exceeding half million of dollars, has largely extended and preparing still farther to extend the mail service, and recommends reduction of pos- tages equal 10 about 20 per cent It is practising up- on the great principle which should control every branch of our government, of rendering to the public the great est good possible, with the least possible taxation to the people,

 The scale of postages suggested by the Postmaster General recommends itself not only by the reduction it proposes, but by the simplicity of it's arrangement, its conformity with the Federal currency and the im- provement n will Introduce into the accounts of the department and its agents.

 Your particular attention is invited to the subject of mail contracts with railroad companies. The present laws, providing for the making of contracts are passed upon the presumption bat competition among bidders, will secure the service at fair price, But on most of the railroad lines, there IS competition in that kind of transportation, and advertising therefore useless No contract can now be made with them except such shall be negotiated before the time of offering CT af forwards, and the power of the Postmaster General DaVt thnyoh hiuhny iC utbo Hn,it It would be relief to him, and no doubt would con- duce to the public interest, to prescribe, by law, equitable basis upon which such contracts shall rest, and restrict him by fixed rule of allowance. Under q liberal act Of that sort he would undoubtedly be able to secure the of most of the aroad compan ies, and the interest of the department would be thus advanced.

 The correspondence between the people of the U s. aud the European nations, and particularly with the British Islands, has become very extensive, and quires the nterposion of Congress give security No obstacle Is perceived to interchange of mails be- tween New York and Liverpool or other foreign ports, as proposed by the Postmaster General; the trary promises, by the security will afford to faci tate commercial transactions, and give rise to larged intercourse among the people of different nations, which cannot but have happy effect Through the cy of New ork of the correspondence between the Canadas and Europe is carried on, and urgent representations have been received from the head of the provincial post-ofice, asking the nerpositon of the United States to guard Ii from the accidents and losses to which 1t IS subjected. Some legislation appears to be called for well by our interest, as by comity to the adjoining British Provinces.

 The expedency of providing fre-proof building for the important books and papers of the postofice department, IS worthy of consideration In the pres ent condition of our Treasury it neither necessary nor wise to leave essential public interests exposed to so much danger when they readily be made se- cure There weighy considerations in the location o new building for the department, in favor of placing