antic and
Pacific oceans: further provisions are required which shall designate
and establish a free port at each end of the canal, and fix the distance
from the shore within which belligerent maritime operations shall not
be carried on. Upon these points there is said to be little doubt that
the two nations will come to an understanding. The company of American
citizens who have acquired from the state of Nicaragua the right of
constructing a ship canal between the two oceans, through the territory
of that state, have made progress in their preliminary arrangements. It
is hoped that the guarantees of the treaty between the United States and
Great Britain will be sufficient to secure the early completion of the
work. Citizens of the United States have undertaken the construction of
a railroad across the Isthmus of Tehuantepec, under grants of the
Mexican government to a citizen of that republic. Some further
stipulations from Mexico are still needed, however, to impart a feeling
of security to those who may embark in the enterprise. Negotiations to
secure them are now in progress. A proposition made by the government of
Portugal to adjust and settle the claims of the United States against
that government, has been accepted by the United States; and it is
expected that a regular convention will be immediately negotiated for
carrying the agreement into effect. The commissioner appointed under an
act of Congress to carry into effect the Convention with Brazil, of
January 27, 1849, has entered upon the performance of his duties: an
extension of time, however, will be required, in consequence of the
failure to receive documents which the government of Brazil is to
furnish. The collection in ports of the United States, of discriminating
duties on the vessels of Chili has been suspended.

The total receipts into the Treasury for the year ending June 30, 1850,
were $47,421,748: expenditures during the same period $43,002,168. The
public debt has been reduced $495,276. Part of the public debt amounting
to $8,075,986 must be provided for within the next two years. A
modification of the tariff is strongly recommended; so as to impose
specific duties sufficient to raise the requisite revenue, and making
such discrimination in favor of the industrial pursuits of our own
country as to encourage home production without excluding foreign
competition. Under the present _ad valorem_ system extensive frauds have
been practiced which show