try into the custom-house at Bryarlys Landing, on Red River,
by certain citizens of the United States, and taking away therefrom the
goods seized by the collector of the customs as forfeited under the laws
of Texas, have been adjusted so far as the powers of the Executive
extend. The correspondence between the two Governments in reference
to both subjects will be found amongst the accompanying documents.
It contains a full statement of all the facts and circumstances, with
the views taken on both sides and the principles on which the questions
have been adjusted. It remains for Congress to make the necessary
appropriation to carry the arrangement into effect, which I respectfully
recommend.

The greatly improved condition of the Treasury affords a subject for
general congratulation. The paralysis which had fallen on trade and
commerce, and which subjected the Government to the necessity of
resorting to loans and the issue of Treasury notes to a large amount,
has passed away, and after the payment of upward of $7,000,000 on
account of the interest, and in redemption of more than $5,000,000 of
the public debt which falls due on the 1st of January next, and setting
apart upward of $2,000,000 for the payment of outstanding Treasury notes
and meeting an installment of the debts of the corporate cities of the
District of Columbia, an estimated surplus of upward of $7,000,000 over
and above the existing appropriations will remain in the Treasury at the
close of the fiscal year. Should the Treasury notes continue outstanding
as heretofore, that surplus will be considerably augmented. Although
all interest has ceased upon them and the Government has invited their
return to the Treasury, yet they remain outstanding, affording great
facilities to commerce, and establishing the fact that under a
well-regulated system of finance the Government has resources within
itself which render it independent in time of need, not only of private
loans, but also of bank facilities.

The only remaining subject of regret is that the remaining stocks of the
Government do not fall due at an earlier day, since their redemption
would be entirely within its control. As it is, it may be well worthy
the consideration of Congress whether the law establishing the sinking
fund (under the operation of which the debts of the Revolution and last
war with Great Britain were to a great extent extinguished) should not,
with proper modifications, so as to preven