81 deg. 47 min. 30 sec. parallel of latitude, with the boundary line established by the late treaty dividing said river from its mouth upwards, according to the fifth article of the treaty of Guadalupe. the parallel of 31 deg. 20 min. north latitude; that is to say, below the intersection of the thence along the said parallel of 31 deg. 20 min. to the 111th meridian of longitude west of Greenwich; thence in a straight line to a point on the Colorado River twenty English miles below the junction of the Gila and Colorado Rivers; thence up the middle of the said river Colorado until it intersects the present line between the United States and Mexico. ART. 5. All the provisions of the eighth and ninth, sixteenth and seventeenth articles of the treaty of Guadalupe Hidalgo, shall apply to the territory ceded by the Mexican Republic in the first article of the present treaty. For the performance of this portion of the treaty, each of the two governments shall nominate one commissioner, to meet in the city of ART. 6. No grants of land within the territory Paso del Norte, three months after the exchange ceded by the first article of this treaty bearing of the ratifications of this treaty, to survey and date subsequent to the day-twenty-fifth of Sepmark the dividing line stipulated by this article, tember-when the minister and subscriber to where it shall not have already been surveyed this treaty on the part of the United States proand established by the mixed commission, ac-posed to the Government of Mexico to terminate cording to the treaty of Guadalupe. the question of boundary, will be considered valid or be recognized by the United States, nor will any grants made previously be respected or be considered as obligatory which have not been located and duly recorded in the archives of Mexico. The line established by this commission shall be final, and be considered an integral part, without the necessity of ulterior ratification or approval, and without room for interpretation of any kind by either of the parties contracting. In consequence, the stipulation in the 5th article of the treaty of Guadalupe upon the boundary line therein described is no longer of any force, wherein it may conflict with that here established. ART. 2. The government of Mexico hereby releases the United States from all liability on account of the obligations contained in the eleventh article of the treaty of Guadalupe Hidalgo; and the said article and the thirty-third article of the treaty of amity, commerce and navigation between the United States of America and the United Mexican States concluded at Mexico, on the fifth day of April, 1831, are hereby abrogated. ART. 3. In consideration of the foregoing stipulations, the government of the United States agrees to pay to the government of Mexico, in the city of New York, the sum of ten millions of dollars, of which seven millions shall be paid immediately upon the exchange of the ratifications of this treaty, and the remaining three millions as soon as the boundary line shall be surveyed, marked and established. ART. 7 reaffirms articles 21 and 22 of the treaty of Guadalupe in reference to any future disagreement between the two nations. ART. 8. The Mexican Government having on the 5th of February, 1853, authorized the early construction of a plank and railroad across the Isthmus of Tehuantepec, and, to secure the stable benefits of said transit way to the persons and merchandise of the citizens of Mexico and the United States, it is stipulated that neither government will interpose any obstacle to the transit of persons and merchandise of both nations; and at no time shall higher charges be made on the transit of persons and property of citizens of the United States, than may be made on the persons and property of other foreign nations, nor shall any interest in said transit way, nor in the proceeds thereof, be transferred to any foreign government. The United States shall have the right to transport across the isthmus, in closed bags, the mails of the United States not intended for distribution along the line of communication; also the effects of the United States government and its citizens, which may be intended for transit, and not for distribution on the isthmus, free of custom-house or other charges by the Mexican government. Neither passports nor letters of security will be required of persons crossing the isthmus and not remaining in the country. ART. 4. The provisions of the 6th and 7th articles of the treaty of Guadalupe Hidalgo are hereby abrogated, and the provisions as herein expressed substituted therefor. The vessels and citizens of the United States shall, in all time, have free and uninterrupted passage through the Gulf of California, to and from their posses- When the construction of the railroad shall be sions situated north of the boundary line of the completed, the Mexican government agrees to two countries. It being understood that this open a port of entry in addition to the port of passage is to be by navigating the Gulf of Cali-Vera Cruz, at or near the terminus of said road fornia and the river Colorado, and not by land, on the Gulf of Mexico. without the express consent of the Mexican government; and precisely the same provisions, stipulations and restrictions, in all respects, are hereby agreed upon and adopted, and shall be scrupulously observed and enforced by the two contracting governments in reference to the Rio Colorado, so far and for such distance as the middle of that river is made their common boundary line by the first article of this treaty. The several provisions, stipulations and restrictions contained, in the 7th article of the treaty of Guadalupe Hidalgo shall remain in force only so far as regards the Rio Bravo del Norte, below the initial of the said boundary provided in the first article of this treaty; The two governments will enter into arrangements for the prompt transit of troops and munitions of the United States, which that government may have occasion to send from one part of its territory to another, lying on opposite sides of the continent. The Mexican government having agreed to protect with its whole power the prosecution, preservation and security of the work, the United States may extend its protection as it shall judge wise to it when it may feel sanctioned and warranted by the public or international law. ART. 9 provides for the exchange of ratifications within six months. Expenditures for said year were: TREATY WITH JAPAN. Civil list... Foreign intercourse... Total expenditure... 1854 From customs. $4,649,384 98 7,726,677 13 13,531,310 33 2,609,054 79 11,733,629 48 10,768,192 89 24,336,330 66 .$75,354,680 26 . $20,137,967 50 .$18,639,798 45 2,731,654 12 149,850 28 .$21,521,302 85 IN our Almanac for 1854 we gave a historical account of the operation of the Japanese Expedition under Com. Perry. We now have the pleasure of announcing the entire success of Com. Perry iu opening commercial and friendly relations between the Empire of Japan and the Republic of the United States. On the 31st of March, 1854, a treaty was signed at Yedo which opens the port of Simodi, near the entrance to the Bay The receipts of the first quarter of the fiscal of Yedo, and the port of Hakodadi (near Mats-year, ending Sept. 80, 1854, were as follows: mai) on the Straits of Sangad, to our commerce. The treaty secures assistance to our vessels in case of distress, provides that they shall be furnished with wood, water, coal, provisions, &c., at fixed and reasonable prices; establishes a scale of the value of coin, a standard of weights and measures, and provides for the carrying on of commerce with Japan by the citizens of the United States. The treaty arranges for the residence of American citizens at these ports, and also for the residence of consuls, if, in future, either party should desire it. It also stipulates that Americans residing in or visiting these ports, shall be free to visit the interior to the distance of ten or twelve miles without molestation. NATIONAL FINANCES. FROM the Annual Report of the Secretary of the Treasury we learn that the receipts into the Treasury for the fiscal year ending June 30, 1854, were as follows: 1st quarter-from customs.. from lands.... miscellaneous... Total... The expenditures for the same first quarter were: Civil, miscellaneous and foreign intercourse.. Interior Department. terest and premium.... Total expenditures.... $6,241,749 81 2,175,737 13 8,367,039 92 2,508,791 09 1,876,613 17 $16,169,330 62 The receipts for the first quarter, the estimated receipts for the remaining three quarters, and the balance in the Treasury on the first day of July, 1854, make a total sum of $84,107,967 50 for the service of the fiscal year ending June 30, 1855. .$19,718,822 00 The estimated expenditures for the remaining 1,489,562 05 three quarters of the year are as follows: 147,994 87 Civil list, foreign intercourse, and The estimated receipts for the fiscal year end-ing the price of public lands, and this has been ing June 30, 1856, are as follows: From customs. From lands.... Miscellaneous...... Add estimated balance in the .$56,000,000 00 $62,500,000 00 19,762,046 29 Making the estimated sum of $82,262,046 29 for the service of the fiscal year 1856. Estimated expenditures for the fiscal year 1856: Balance of former appropriations, to be expended this year.........$11,212,905 20 Permanent and indefinite appropriations, to be expended this year..... Appropriations asked for and to be expended this year... Total.. 7,934,411 70 41,722,516 47 $60,869,888 87 leaving the sum of $21,392,212 92 on the 1st of July, 1856. REPORT OF THE GENERAL LAND OFFICE. done, except where the reservation was for a fixed period, or have already been made. In view of the increase of business consequent on the operations of the law graduating the price of the public lands, and the decrease in the compensation of the land offices, caused by that reduction, the Commissioner recommends better provision for remunerating land officers, with allowances for clerk hire and office rent. Of the operation of the graduation law, the report says: "Judging from the reports received, it has been productive of much fraud and perjury, and proved seriously injurious to the actual settlers on the public domain. As far as practicable, these evils have been remedied by construction and instructions; but the law is inherently defective. If it be designed to engraft this feature permanently on our land system, the privilege of purchasing at the graduated price should have been limited to preemptors or made general to all. Now, it is alleged, that persons take the oath required by the law, with the mental qualification that the land will be required for actual settlement and cultivation at some future time. Others, it is stated, have employed men to go forward and make the affidavit, paying all their expenses, and also paying for the land-the emTHE general facts contained in this document ployer agreeing to give his employés, in fee simare as follows: During the year ending June 30, ple, a portion, say an eighth or a quarter of the there were 7,085,000 acres sold for cash; 8,402,-land so entered, retaining the balance." The 000 located by land warrants, and 14,000 by other difficulties are further explained, as will be seen certificates; 11,000,000 reported as swamp lands, in the report. The Commissioner discusses at and 1,751,000 for internal improvement-making length the granting of land to the States, and for a total of 23,238,813 acres. For the last quarter, railroad and other improvements. With regard 4,780,000 acres were disposed of, being all togeth- to the Pacific Railroad, he says, the necessity er an increase of sales amounting to 5,600,000 of such a mode of communication becomes daily acres over the previous year, though there is a di- more apparent, and that the only way it can be minution of 2,000,000, including land warrant and secured is by grants of land; and adds, that swamp transactions-the difference being caused should the land system be crippled, this work, by the fact that the most of the grants for bounty and all others of like character, will be rendered lands, swamps, railroads, etc., had previously impracticable. If the object sought in the Gradubeen disposed of. The sales for the third quarter ation Act was to get rid of the lands as soon as of the current calendar year are more than twice practicable, he says, there is but little doubt that as heavy as those for the corresponding quarter object will be attained by it. If, on the contrary, of the previous year, though the locations are the supposition was that the lands would not sell less numerous. From the 30th of September, for more, his statements, he presumes, will satis1858, to the 30th of September, 1884, 9,384,464 factorily show that supposition to be erroneous. acres were surveyed, chiefly in Wisconsin, Iowa, The sales have always been equal to the demand; Minnesota and Florida, and 8,190,917 acres were the supply far, very far beyond it. The demand brought into market. This is exclusive of the at the reduced prices will be increased, but chiefly surveys in California, Oregon and Washington, for purposes of speculation, and the hardy and amounting to 1,686,471 acres, which have not enterprising settler, instead of dealing with a yet been proclaimed for sale. The Commissioner kind and paternal Government in the purchase says, on an average, full one-third more business of his lands, and securing a perfect title, will has been done in the office during the past year have to look to the wealthy monopolist, and trust than in the preceding; of the 26,543,760 acres to his tender mercies, with the risk that his title embraced by the land warrants now issued, is encumbered by prior liens aud mortgages. 22,335,880 acres have been located-leaving only With such views, the Commissioner says the na4,807,880 acres to be satisfied. The report gives a minute detail of the labors of the Department, and recommends more secure deposits for the books and papers; and then presents the operations of the various State and Territorial Surveyors. With regard to railroad lands, it is stated that at the instance of several Members of Congress and others, about 31,000,000 of acres in several of the land States had been withdrawn from market, in anticipation of grants for railroad and other internal improvements. As such REPORT OF THE POSTMASTER-GENERAL. grants were not made, it was deemed expedient to restore these masses of land to market, espeTHE whole number of Post-Offices in the United cially in view of the passage of the bill graduat-States on the 30th June, 1854, was 23,548; net tural suggestion is, that the graduation law be radically amended, if it be the pleasure of Congress to engraft it permanently on the land system; and, in that event, it is further suggested that the 12 1-2 cent class be abolished, or rather donated to the States respectively in which they lie, as the profit will scarcely defray the expense of disposing of them. increase for the year ending that date, 1,228. [ of Postmasters, under the act of Congress, passThe total number of offices on the first of De-ed June 22, 1854, and to another law of Congress, cember, 1854, was 23,925. On the 30th June last making provision for the postal service in the there were in operation 6,697 mail routes. The State of California, and the Territories of Oregon number of contractors was 5,167. The length of and Washington. The following figures, howthese routes is estimated at 219,935 miles. The ever, are made. Estimated expenditures for the total annual transportation of mails was 63,887,-year 1855, exclusive of payments for foreign 005 miles, costing $4,630,676, and divided as fol- postages accruing within the year, $9,841,921 23. lows, viz: 21,267,603 miles by modes not speci- The means of the year, Mr. Campbell states, will fied, at $1,092,833, about 5 cents per mile; 20,-probably amount to $9,989,944 96. Estimated 890,530 miles by coach, at $1,290,095, about 6 surplus, June 30, 1855, $148,023 63. Mr. Campcents per mile; 15,438,889 miles by railroad, at bell recommends the passage of a law authorizing $1,758,610, about 11 cents 4 mills per mile; 5,795,- the establishment of a system of registration of 483 miles by steamboat, at $489,138, about 8 cents all valuable letters, at the option of the corre4 mills per mile. Compared with the services of the spondents-five cents additional postage being year ending 30th June, 1858, there is an increase charged for registration, and all registered letof 1,494,468 miles of transportation, or about 21-2 ters to be made up under the special Post bill, per cent., and of $134,708 cost, being about 3 per and sent under a special envelop to the Postcent. The increase of railroad service is 2,446,- masters. A system of checks and accounts is 684 miles, and the expense $157,281, being 19 per also suggested, in order the more readily to ascent. in transportation, and not quite 1 per cent. certain when valuable letters are missing, and in cost. The increased transportation by modes to give an easier clue to mail robberies. The not specified is 877,157 miles, or about 1 per cent., Postmaster compliments the Collins' line of at a cost of $37,520, or 3 85-100 per cent. The steamers highly, and thinks the original allowtransportation by coaches is less by 439,796 miles, ance made to it by the Government was too low, or about 2 per cent., though at an increased cost but that the present pay is too high. He does of $83,137, or 6 88-100 per cent. The steamboat not, however, recommend any decided course transportation during the past year was reduced with reference thereto. He thinks the California 889,582 miles, or 15 3-8 per cent., at a reduced mail steamers' service costs too much, and sugcost of $143,230, or 29 7-10 per cent. There gests that unless contractors will give weekly serwere in service on the 30th June last, 236 route vice for the present contract price, the Governagents, at a compensation of $181,600 per an- ent had better exercise their right and abrogate num; 21 local agents at $15,490 per annum; the contract by a purchase of the company's ships. and 968 mail messengers, at $92,131 80 per annam; making a total cost of $289,221 80 per annum to be added to the other cost of transporta-REPORT OF THE SECRETARY OF THE NAVY. The Auditor reports the expenditure of the THE Secretary of the Navy recommends an adDepartment for the last fiscal year at $8,577,424 ditional but gradual increase of the Navy; its 12, and the gross revenue, including foreign post- reorganization, and the enactment of new reguages, etc., at $6,955,586 22. This revenue includes lations for the discipline and improvement of the balance against the Department of $138,565 seamen. The movements of the various squad61, resulting from our postal accounts with Great rons are reported in detail. The sloop-of-war Britain, Prussia and Bremen. One of the results Albany was last heard from at Aspinwall on the of the great activity and expansion which have 28th September, when she left for New-York. prevailed in the general business operations of Painful anxiety is felt touching her fate. The the country during the past year, is manifest in steamer Princeton was sent in search of her sevan extraordinary increase in the Post-Office re-eral days since. Lieut. Strain and party are venue, amounting to nearly one million of dol- complimented for enterprise, and exhibition of lars. tion. Deduct the balance in each year, resulting from our postal accounts with England, etc., viz: in 1853, $94,466 27, and in 1854, $138,928 31, and the total increase in 1854 is $970,399 48, or 18 85-100 per cent. In view of the trivial increase of the postage on printed matter, and of the extremely low rates, particularly for newspapers and periodicals, the Postmaster-General recommends that the law be so changed as to omit the clause referred to, leaving the department to fall back upon the act of 1825, under which quarterly payments in advance on newspapers and periodicals have heretofore always been required. powers of endurance and generous devotion to duty in the exploration of the Darien Ship Canal route. The result arrived at is that the proposed Canal is totally impracticable; and this, the Secretary apprehends, settles the question forever. The bombardment of Greytown by the sloop-ofwar Cyane is narrated, and indirectly approved. Commodore Perry is highly complimented for his success in Japan. The Secretary does not propose to increase the number of officers nor materially enlarge the squadrons, and thereby largely increase the current expenses, nor have a navy of the immense size and extent of some of the navies of European powers, but to increase the material of our Navy so as at least to approximate to a state of readiness for emergencies, which wise statesmen strive to avoid, but wiser statesmen prepare to meet. The Postmaster-General states, that the ex- The Secretary renews his recommendations of penditure of the current year, ending June 30, last year for the reorganization of the Navy; 1855, owing to causes not within the control of the creation of a retired list for infirm officers; the Department, will greatly exceed those of the the discharge of the inefficient, and to have last year. Among the causes of this increase, promotions regulated by capacity and merit in Mr. Campbell names the increased compensation 'some degree. instead of by seniority of com mission and pay to some extent controlled by cost sufficient to give some degree of security to sea service. So far as he has authority these the Indian frontiers, for which purpose the reguviews will guide his action, even without legisla-lar force is the most efficient, cheap, proper and tion. The Secretary is far from recommending constitutional means. The increased pay to the restoration of flogging. The experience of enlisted men induced the enlistment of 1,005 the Navy justifies its abrogation. There is, men in October and September last, against 309 however, urgent necessity for some substitute, men during the corresponding months last year. accompanied with a plan of reward as well as The number of recruits required for the service punishment a substitute which would be prompt of the ensuing year will, probably, not be less and sure-in order to restrain the offender and than 6,000. He recommends the use of camels and deter the inconsiderate; to reward, equally sure, dromedaries for military purposes again, and the generous; to encourage fidelity and pro- asks an appropriation to test their usefulness. mote respectability. It is not the severity, but An increased pay for officers is urged as an act the certainty and promptness of punishment, of justice and necessity. Additional legislation which promote discipline. He recommends that is asked to place the widows and orphans of the the commander of any vessel be authorized by officers and soldiers of the Army on an equality law to order a summary court-martial for the with the widows and orphans of the officers and trial of petty officers and those below them; that soldiers of the Navy. The necessity of a revision they have power to punish by dishonorable dis- of our military legislation in some important charge in any port, or by confinement on re- particulars is pointed out, in order to prevent duced rations, and without pay, with extra labor conflicting claims in regard to rank and comand a denial of shore privileges. It is the Sec-mand which now give rise to much inconvenretary's purpose to immediately adopt, in modi-ience and trouble. One great source of difficulty fied form, the apprentice system, and to en- is the double rank recognized by our laws; to courage the enlistment of American boys from remedy this, it is proposed to give effect to bre14 until 21 years of age; to train them first on a receiving-ship, then on cruisers, in practical seamanship. He is clearly of the opinion, also, that the number of men in the service should be increased at least 2,500. The number of the marine corps is deemed entirely too small, and an indefinitely stated increase is earnestly recommended. The corps would be improved and elevated in character by adopting some system of appointing officers of military education and Inspectors-General; being an addition of three training. Prof. Maury's achievements in de- to those who now, by brevet or otherwise, have veloping his theory of winds and currents, and rank and command as Brigadier - Generals. his preparation of charts, are noticed most flat- Other marked changes in staff appointments, teringly. It is estimated that the saving to our rank and duty, are proposed. Reforms in the commerce by the use of his charts would amount organization of regiments are also suggested. to several millions per annum. Robert L. The expediency of general promotions by seStevens's iron war-steamer, shot and shell niority instead of merit is doubted by the Secreproof, for harbor defense, is rapidly progressing.tary, and the establishment of a retired list again The boilers will be ready to put on board in about three weeks. REPORT FROM THE WAR DEPARTMENT. vet rank only when the President may see fit, and forbid the exercise of brevet commissions in the regiment, troop, or company, where officers are mustered. Elaborate suggestions for reorganization of the staff corps are presented, and compared with European systems. It is proposed that there be nine Brigadier Generals, one for each department; one for QuartermasterGeneral, one for Adjutant-General, and two for urged. Professorships of Ethics and of English studies at the Military Academy are recommended. REPORT OF THE PENSION OFFICE. THE whole number of pensioners, June 30, 1853, was 11,667. Annual amount payable to them, $1,070,079. Same, June 80, 1854, 14,065, and annual amount payable to them, $1,172,651 63. Number of Revolutionary soldiers on the roll, June 30, 1853, 1,395; number of Revolutionary soldiers on the roll, June 80, 1854, 1,069. There have been taken from the rolls of the Army Pensioners during the year ending June 30, 1854, by death, 643; by transfer to the Treasury Department as unclaimed pensions, 883-total 1,526. Of the Navy Pensioners for the year ending Sept. 80, 1854, 24 are reported dead, and 38 transferred to the Treasury Department as unclaimed pensions. Of those transferred to the Treasury Department, but few are again restored to the roll. THE actual strength of the Army is only 10,745. The whole authorized strength is 14,216. The deficiency is fast decreasing by more rapid enlistments. A statement is given of the changes made in the distribution of the army during last year. The removal from Florida of the remnant of the Seminoles, has received the attention of the Department; bnt its efforts have not been very successful. The Indian difficulties elsewhere are alluded to. The massacre of Lieut. Gratton and men by the Sioux is narrated, and the fact stated that the army force is quite inadequate to he protection of our frontier and to punish Indian aggressions. Our entire loss in Indian actions during the year is four officers and sixtythree men killed, and four officers and forty-two men wounded. The occurrences on the frontier furnish deplorable proofs of the insufficiency of our military force, and of the absolute necessity for its increase, which was urged by the SecreREPORT OF THE PATENT OFFICE. tary last year. Our effective force does not exceed 11,000 men, which is entirely inadequate ACCORDING to the Report of the Commissioner for the purposes for which we maintain a stand- of Patents, the arrearages in business in that ing army. Its immediate increase is urged, at a' office have been well pushed forward by in |