ld not be deemed
advisable to carry that recommendation into effect, I would suggest that
authority be given for investing the principal, or the proceeds of the
surplus referred to, in good securities, with a view to the satisfaction
of such other just claims of our citizens against China as are not
unlikely to arise hereafter in the course of our extensive trade with that
empire.

By the act of the 5th of August last Congress authorized the President to
instruct the commanders of suitable vessels to defend themselves against
and to capture pirates. His authority has been exercised in a single
instance only. For the more effectual protection of our extensive and
valuable commerce in the Eastern seas especially, it seems to me that it
would also be advisable to authorize the commanders of sailing vessels to
recapture any prizes which pirates may make of United States vessels and
their cargoes, and the consular courts now established by law in Eastern
countries to adjudicate the cases in the event that this should not be
objected to by the local authorities.

If any good reason exists why we should persevere longer in withholding
our recognition of the independence and sovereignty of Haiti and Liberia,
I am unable to discern it. Unwilling, however, to inaugurate a novel
policy in regard to them without the approbation of Congress, I submit for
your consideration the expediency of an appropriation for maintaining
a charge d'affaires near each of those new States. It does not admit of
doubt that important commercial advantages might be secured by favorable
treaties with them.

The operations of the treasury during the period which has elapsed since
your adjournment have been conducted with signal success. The patriotism
of the people has placed at the disposal of the government the large means
demanded by the public exigencies. Much of the national loan has been
taken by citizens of the industrial classes, whose confidence in their
country's faith and zeal for their country's deliverance from present
peril have induced them to contribute to the support of the government
the whole of their limited acquisitions. This fact imposes peculiar
obligations to economy in disbursement and energy in action.

The revenue from all sources, including loans, for the financial year
ending on the 30th of June, 1861, was $86,835,900.27, and the expenditures
for the same period, including payments on account of the public debt,
were $84,5