nd consequently in contravention of the commercial convention between
the two nations securing to us equality in such cases. The principle on
which the claim rests has long since been virtually admitted by Great
Britain, but obstacles to a settlement have from time to time been
interposed, so that a large portion of the amount claimed has not yet
been refunded. Our minister is now engaged in the prosecution of the
claim, and I can not but persuade myself that the British Government
will no longer delay its adjustment.

I am happy to be able to say that nothing has occurred to disturb in any
degree the relations of amity which exist between the United States and
France, Austria, and Russia, as well as with the other powers of Europe,
since the adjournment of Congress. Spain has been agitated with internal
convulsions for many years, from the effects of which, it is hoped, she
is destined speedily to recover, when, under a more liberal system of
commercial policy on her part, our trade with her may again fill its old
and, so far as her continental possessions are concerned, its almost
forsaken channels, thereby adding to the mutual prosperity of the two
countries.

The Germanic Association of Customs and Commerce, which since its
establishment in 1833 has been steadily growing in power and importance,
and consists at this time of more than twenty German States, and
embraces a population of 27,000,000 people united for all the purposes
of commercial intercourse with each other and with foreign states,
offers to the latter the most valuable exchanges on principles more
liberal than are offered in the fiscal system of any other European
power. From its origin the importance of the German union has never been
lost sight of by the United States. The industry, morality, and other
valuable qualities of the German nation have always been well known and
appreciated. On this subject I invite the attention of Congress to the
report of the Secretary of State, from which it will be seen that while
our cotton is admitted free of duty and the duty on rice has been much
reduced (which has already led to a greatly increased consumption),
a strong disposition has been recently evinced by that great body to
reduce, upon certain conditions, their present duty upon tobacco. This
being the first intimation of a concession on this interesting subject
ever made by any European power, I can not but regard it as well
calculated to remove the only