entire success, he has placed in the possession of Government some bases for the undertaking.

Finance.

It affords me sincere pleasure to inform you that the ordinary resources of the country have sufficed to discharge with punctuality all ordinary and extraordinary requirements of the Administration. Order and integrity in the management of the public money have enabled us to meet every outlay requisite for the progress and security of the country; and the Government can now boldly declare in the face of the country that the vexatious invasions on private property, under the denomination of aids, no longer exist in any part of the Republic.

The present Administration entered on office without the antecedents, or even elements, common to all Governments, and indispensable for their existence. Without fixed residence up to the end of last year, without accommodation for the public offices, it was necessary to create everything, and although serious difficulties and great expenses stood in the way, all have been met.

In order to estimate the national revenues in the metropolis, as well as throughout the Republic, our first task was to distinguish, in the budget guaranteed to Buenos Ayres, those items which were national from the provincial entries; and to determine, according to law, the monthly sum which should be given to the province of Buenos Ayres, in guarantee of its budget of 1859. This laborious work has been concluded to the entire satisfaction of both Governments, national and provincial.

In virtue of these arrangements it was ordained that the national revenues of Buenos Ayres should commence to be received for credit of the nation from the 10th of October last, after which date the customs and postal rents should pass to the exchequer of the Republic.

This measure, which was indispensable for defining the limits of the distinct revenues, left the National Government without resources from the Custom-House of Buenos Ayres during the first month of office, while heavy demands pressed on the Treasury for the usual expenditure, at the end of October as well as in November; the only national receipts being from the Rosario Custom-House, which were found insufficient, and Government therefore opened a credit in one of the private banks, as you will be informed by the Minister of the Department.

These credits have been gradually paid off, only a small balance yet remaining due; and it is an undoubted fact that the usual income would have precluded the necessity of this resort, if the National Government had not begun the public service with a month's arrears,

and if it could have reckoned on the collection of the October revenues in the other Custom-Houses of the Republic.

The collection of duties in the riverain and inland CustomHouses required the dispatch of two Commissioners to take possession of them, and to ascertain what reforms and improvements were feasible in their management. The Custom-Houses of the Uruguay and Parana were delivered up so late as November 1st, and only a trifling sum was found to the national credit. One Custom-House was handed over in the middle of February, which caused an important diminution in the revenue which the National Government had to depend upon.

The inspectors of riverain and inland Custom-Houses have rendered very valuable services to the Administration. In accordance with their reports, the chief material necessities have been supplied, as to buildings, preventive officers, &c., with suitable changes in the staff of officials, which has enabled those departments to enter on their functions with the regularity which still continues.

The produce of those different Custom-Houses, along with the receipts of Buenos Ayres, has satisfied all the ordinary and extraordinary outlay of the Administration. All public servants have been paid with religious punctuality.

The Army and War Department have been paid. The coupons on the foreign debt of former years have been discharged. The guarantee of 2,000,000 dollars monthly to the province of Buenos Ayres has been duly paid. The sum of 2,500,000 dollars monthly has been handed over for interest of the public provincial funds and for the redemption of paper-money. The interest and sinking fund of the 3,000,000 loan, of October 1, 1861, have been paid. Auxiliary grants have been made to each of the provinces, besides the current expenses for constructing bridges, roads, and other public works therein.

It has also been a grateful duty to afford Government protection to enterprises of known utility and importance for the country. Foremost among these are the San Juan Mining Association; the Artesian well, which is progressing in its works; the subsidies to new lines of steamers and carriers; and the funds contributed for building churches in divers localities.

It was decreed by law, that the bonds, treasury notes, and vouchers, formerly received in the Custom-Houses of the Confederation, should be paid out of the additional import and export dues created for this and other purposes. The produce of those dues has not sufficed even to pay the interest and sinking fund of the 4,000,000 loan which stood first on the list. If this credit had been charged on the general income of the nation, it would have been already liquidated. For the credit of the country, as well as to simplify the receipts and payments of the treasury, it is advisable [1862-63. LIII.]

4 C

to consolidate all revenues as well as debts, so that all credits may be equal before the law. Government will propose to you, at the proper time, a means of satisfying the debt represented by the bonds, treasury notes, and vouchers, of the late Confederation, which it has not been possible to meet as yet with the extra duties.

The national revenues have suffered a sensible reduction by the nominal value of 20 paper dollars to the silver dollar, as fixed by law, in the payment of public imposts. While duties were collected in this ratio, it was necessary to pay in specie or at the rate of 26 or 27 per dollar, the coupons of the foreign debt, the interest of the loan of October 1, the subsidies to the provinces, and in general all heavy liabilities incurred out of Buenos Ayres. Meanwhile the said law failed to effect the desired result, viz., to check the depre ciation of paper money in this province; and it has only caused a needless waste of public money.

The revenues of the Republic, consisting, for the most part, of Customs dues, are based on a tariff of protection to several industries, with prejudice to the rest. The Government considers that it is high time to pass a new Customs law founded on such principles as ought to govern these imposts.

It is imperatively necessary to establish banks of issue in all parts of the Republic, in order to furnish capital for the development of industry. A project will shortly be submitted to you for the creation of free banks throughout the Argentine territory; and it is very satisfactory meanwhile to be able to assure Congress that the current year will probably see the inauguration of 3 banks, with large capital, in the towns of Cordoba, Rosario, and Gualeguaichú.

In starting these establishments of credit, the National Government cannot be blind to the influence they must have with reference to the paper money of Buenos Ayres; it is to be hoped that Congress will devise a method either of improving the currency of this province, or of abolishing it, without prejudice to private parties.

Justice.

The Government, in fulfilment of the law, and impressed with the necessity of completing our political organization, installed the Supreme Federal Court of Justice, which is destined to have so mighty and salutary an effect as a moderating power in the development of our national institutions. The Supreme Court, nevertheless, experienced the difficulties incidental to a new institution, devoid of all precedent in the country; it therefore postponed entering on the exercise of its functions until Congress should clearly determine the procedure to be observed in its trials.

Meanwhile it has been usefully employed in the preparation of some commendable works calculated to elucidate the law sanctioned

by Congress immediately before the close of last year's session, as well as to anticipate whatever doubts or questions might arise in a matter so new and so important.

For this reason, too, Government resolved to abstain from the nomination of sectional judges, whose office would have been at least difficult and without purpose, so long as the Supreme Court could not take cognisance of the appeals which might have to be brought before it.

Early in this session will be submitted to you certain projects of law, adequate to meet these requirements, so that the Republic may no longer remain deprived of one of the high powers to which the nation delegates its sovereignty and confides its peace and welfare.

Worship.

The various episcopal dioceses into which the Republic is divided, and to which the spiritual care of the faithful is entrusted, completely fulfil their important mission.

On assuming office the Government found the prelates and dignitaries attached to cathedrals in a deplorable state of indigence, their salaries having been left unpaid for several years past, and some of the churches about to be closed for want of funds to meet the mere expenses of divine worship. These evils were quickly remedied by paying, with punctuality, the allowances provided in the budget, and contributing as far as possible to the repair and construction of churches.

The Bishop of Parana being dead, the chapter proceeded to elect a vicar capitular, without soliciting previous permission to declare the see vacant. Government, however, was convinced by the explanations of the said chapter that this neglect was merely casual, involving no denial of the rights of state patronage, and consequently confirmed the election of the titular Dean D. Miguel Vidal; reserving the integrity of those rights, the observance of which has been recommended to the several diocesan councils, as the surest means of preserving harmony between the civil and ecclesiastical authorities.

Education.

This important branch of administration, on which, in a great measure, depends the future felicity of the country, has been properly attended to by Government, with a willing and especial preference.

There remains, of course, much to be done, in order to satisfy the aspirations both of the country and of the Government; and for this object it was indispensable to have an exact return of the state of education among the youth of the Republic. Application has therefore been made to the several Provincial Governments, calling

for such particulars, and competent persons have been named for the purpose of drawing up a report on the educational establishments depending on national support.

The Government of San Juan has already responded to the wishes of the Federal authority, remitting valuable details which testify to its efforts in the cause of educational reform. As soon as the other provinces shall have furnished similar data, the Government will be enabled to stimulate improvements and developments where requisite, as permitted by the Constitution in this particular.

The Commissioners appointed to inspect the public schools and colleges in Cordoba and Entre Rios, have discharged their duty to the satisfaction of the Government. Their reports show that serious reforms are needful, in order to reap all the advantages of such institutions in the formation of useful and intelligent citizens. Your decided co-operation, at the proper time, is confidently looked for.

Upon the basis of the Ecclesiastical College already existing in this capital, at the charge of the national authority, it was deemed expedient to found, without further burden to the treasury, a national college in which a proportionate number of youths, from the various provinces, might be educated. Thus, for the interest of the rising generation, Government anticipated your approval by establishing the college.

This institute, being placed in the centre of the resources of the metropolis, under the direction of able professors, must render invaluable services towards the creation of virtuous and enlightened members of society, who will take back to their domestic hearths that spirit of fraternity instilled by early associations, so happily calculated to draw closer the bonds of friendly nationality between the provinces.

Enjoying immediate and exclusive care, this college will prove a model whereby to regulate the other public schools endowed by the nation, as also to form new establishments, with your assistance, in divers localities, submitting all to one uniform and convenient system.

War and Marine.

The victory of Pavon and the frank and loyal adhesion of the provinces to the new order of things created by that glorious and eventful triumph, while restoring peace to the Republic, obliged the Government to place a strong body of troops in the most strategic position, to be ready for active movements when required, and to repress any rash efforts at reaction.

The 1st brigade, under General Wenceslaus Paunero, executed the task with honour and glory to the national arms. It re-established order in Rioja, overcoming the grievous obstacles of that province, and restoring to the ranks of order and duty the men who maintained an armed rebellion, having taken shelter in the woods