the present difficulties. A few thousand dollars in suitable presents,
as a compensation for the country which had been taken possession of by
our citizens, would have satisfied the Indians and have prevented the
war. A small amount properly distributed, it is confidently believed,
would soon restore quiet. In this Indian war our fellow-citizens of
Oregon have been compelled to take the field in their own defense, have
performed valuable military services, and been subjected to expenses
which have fallen heavily upon them. Justice demands that provision
should be made by Congress to compensate them for their services and to
refund to them the necessary expenses which they have incurred.

I repeat the recommendation heretofore made to Congress, that provision
be made for the appointment of a suitable number of Indian agents to
reside among the tribes of Oregon, and that a small sum be appropriated
to enable these agents to cultivate friendly relations with them. If
this be done, the presence of a small military force will be all that is
necessary to keep them in check and preserve peace. I recommend that
similar provisions be made as regards the tribes inhabiting northern
Texas, New Mexico, California, and the extensive region lying between
our settlements in Missouri and these possessions, as the most effective
means of preserving peace upon our borders and within the recently
acquired territories.

The Secretary of the Treasury will present in his annual report a highly
satisfactory statement of the condition of the finances.

The imports for the fiscal year ending on the 30th of June last were of
the value of $154,977,876, of which the amount exported was $21,128,010,
leaving $133,849,866 in the country for domestic use. The value of the
exports for the same period was $154,032,131, consisting of domestic
productions amounting to $132,904,121 and $21,128,010 of foreign
articles. The receipts into the Treasury for the same period, exclusive
of loans, amounted to $35,436,750.59, of which there was derived from
customs $31,757,070.96, from sales of public lands $3,328,642.56, and
from miscellaneous and incidental sources $351,037.07.

It will be perceived that the revenue from customs for the last fiscal
year exceeded by $757,070.96 the estimate of the Secretary of the
Treasury in his last annual report, and that the aggregate receipts
during the same period from customs, lands, and miscellaneous sources
also exceeded