except Monte Video and such other portions of
the eastern bank of the La Plata as are held by Portugal, are still in
the possession of Spain or in a certain degree under her influence.

By a circular note addressed by the ministers of Spain to the allied
powers, with whom they are respectively accredited, it appears that the
allies have undertaken to mediate between Spain and the South American
Provinces, and that the manner and extent of their interposition would
be settled by a congress which was to have met at Aix-la-Chapelle
in September last. From the general policy and course of proceeding
observed by the allied powers in regard to this contest it is inferred
that they will confine their interposition to the expression of their
sentiments, abstaining from the application of force. I state this
impression that force will not be applied with the greater satisfaction
because it is a course more consistent with justice and likewise
authorizes a hope that the calamities of the war will be confined
to the parties only, and will be of shorter duration.

From the view taken of this subject, founded on all the information that
we have been able to obtain, there is good cause to be satisfied with
the course heretofore pursued by the United States in regard to this
contest, and to conclude that it is proper to adhere to it, especially
in the present state of affairs.

I have great satisfaction in stating that our relations with France,
Russia, and other powers continue on the most friendly basis.

In our domestic concerns we have ample cause of satisfaction. The
receipts into the Treasury during the three first quarters of the year
have exceeded $17,000,000.

After satisfying all the demands which have been made under existing
appropriations, including the final extinction of the old 6 per cent
stock and the redemption of a moiety of the Louisiana debt, it is
estimated that there will remain in the Treasury on the 1st day of
January next more than $2,000,000.

It is ascertained that the gross revenue which has accrued from the
customs during the same period amounts to $21,000,000, and that the
revenue of the whole year may be estimated at not less than $26,000,000.
The sale of the public lands during the year has also greatly exceeded,
both in quantity and price, that of any former year, and there is just
reason to expect a progressive improvement in that source of revenue.

It is gratifying to know that although the