that the islands may maintain their independence and that
other nations should concur with us in this sentiment. We could in no
event be indifferent to their passing under the dominion of any other
power. The principal commercial states have in this a common interest,
and it is to be hoped that no one of them will attempt to interpose
obstacles to the entire independence of the islands.

The receipts into the Treasury for the fiscal year ending on the 30th of
June last were, in cash, $48,830,097.50, and in Treasury notes funded
$10,833,000, making an aggregate of $59,663,097.50; and the expenditures
for the same time were, in cash, $46,798,667.82, and in Treasury notes
funded $10,833,000, making an aggregate of $57,631,667.82.

The accounts and estimates which will be submitted to Congress in the
report of the Secretary of the Treasury show that there will probably
be a deficit occasioned by the expenses of the Mexican War and treaty on
the 1st day of July next of $5,828,121.66, and on the 1st day of July,
1851, of $10,547,092.73, making in the whole a probable deficit to be
provided for of $16,375,214.39. The extraordinary expenses of the war
with Mexico and the purchase of California and New Mexico exceed in
amount this deficit, together with the loans heretofore made for those
objects. I therefore recommend that authority be given to borrow
whatever sum may be necessary to cover that deficit. I recommend the
observance of strict economy in the appropriation and expenditure of
public money.

I recommend a revision of the existing tariff and its adjustment on a
basis which may augment the revenue. I do not doubt the right or duty of
Congress to encourage domestic industry, which is the great source of
national as well as individual wealth and prosperity. I look to the
wisdom and patriotism of Congress for the adoption of a system which may
place home labor at last on a sure and permanent footing and by due
encouragement of manufactures give a new and increased stimulus to
agriculture and promote the development of our vast resources and the
extension of our commerce. Believing that to the attainment of these
ends, as well as the necessary augmentation of the revenue and the
prevention of frauds, a system of specific duties is best adapted, I
strongly recommend to Congress the adoption of that system, fixing the
duties at rates high enough to afford substantial and sufficient
encouragement to our own industry and at