42 as being not only proper in reference to a state of
peace, but just to all the great interests of the country, the necessity
of such modification and reduction as a war measure must now be
manifest. The country requires additional revenue for the prosecution of
the war. It may be obtained to a great extent by reducing the
prohibitory and highly protective duties imposed by the existing laws to
revenue rates, by imposing revenue duties on the free list, and by
modifying the rates of duty on other articles.

The modifications recommended by the Secretary of the Treasury in his
annual report in December last were adapted to a state of peace, and the
additional duties now suggested by him are with a view strictly to raise
revenue as a war measure. At the conclusion of the war these duties may
and should be abolished and reduced to lower rates.

It is not apprehended that the existing war with Mexico will materially
affect our trade and commerce with the rest of the world. On the
contrary, the reductions proposed would increase that trade and augment
the revenue derived from it.

When the country is in a state of war no contingency should be permitted
to occur in which there would be a deficiency in the Treasury for the
vigorous prosecution of the war, and to guard against such an event it
is recommended that contingent authority be given to issue Treasury
notes or to contract a loan for a limited amount, reimbursable at an
early day. Should no occasion arise to exercise the power, still it may
be important that the authority should exist should there be a necessity
for it.

It is not deemed necessary to resort to direct taxes or excises, the
measures recommended being deemed preferable as a means of increasing
the revenue. It is hoped that the war with Mexico, if vigorously
prosecuted, as is contemplated, may be of short duration. I shall be at
all times ready to conclude an honorable peace whenever the Mexican
Government shall manifest a like disposition. The existing war has been
rendered necessary by the acts of Mexico, and whenever that power shall
be ready to do us justice we shall be prepared to sheath the sword and
tender to her the olive branch of peace.

JAMES K. POLK.

WASHINGTON, _June 16, 1846_.

_To the Senate of the United States_:

In accordance with the resolution of the Senate of the 12th instant,
that "the President of the United States be, and he is hereby, advised
to accept the proposal