an army may be raised upon a few weeks’ notice, and that our citizen soldiers are equal to any troops in the world.  No reason, therefore, is perceived why we should enlarge our land forces and thereby subject the Treasury to an annual increased charge.  Sound policy requires that we should avoid the creation of a large standing army in a period of peace.  No public exigency requires it.  Such armies are not only expensive and unnecessary, but may become dangerous to liberty.

Besides making the necessary legislative provisions for the execution of the treaty and the establishment of Territorial governments in the ceded country, we have, upon the restoration of peace, other important duties to perform.  Among these I regard none as more important than the adoption of proper measures for the speedy extinguishment of the national debt.  It is against sound policy and the genius of our institutions that a public debt should be permitted to exist a day longer than the means of the Treasury will enable the Government to pay it off.  We should adhere to the wise policy laid down by President Washington, of “avoiding likewise the accumulation of debt, not only by shunning occasions of expense, but by vigorous exertions in time of peace to discharge the debts which unavoidable wars have occasioned, not ungenerously throwing upon posterity the burthen which we ourselves ought to bear.”

At the commencement of the present Administration the public debt amounted to $17,788,799.62.  In consequence of the war with Mexico, it has been necessarily increased, and now amounts to $65,778,450.41, including the stock and Treasury notes which may yet be issued under the act of January 28, 1847, and the $16,000,000 loan recently negotiated under the act of March 31, 1848.

In addition to the amount of the debt, the treaty stipulates that $12,000,000 shall be paid to Mexico, in four equal annual installments of $3,000,000 each, the first of which will fall due on the 30th day of May, 1849.  The treaty also stipulates that the United States shall “assume and pay” to our own citizens “the claims already liquidated and decided against the Mexican Republic,” and “all claims not heretofore decided against the Mexican Government,” “to an amount not exceeding three and a quarter millions of dollars.”  The “liquidated” claims of citizens of the United States against Mexico, as decided by the joint board of commissioners under the convention between the United States and Mexico of the 11th of April, 1839, amounted to $2,026,139.68.  This sum was payable in twenty equal annual installments.  Three of them have been paid to the claimants by the Mexican Government and two by the United States, leaving to be paid of the principal of the liquidated amount assumed by the United States the sum of $1,519,604.76, together with the interest thereon.  These several amounts of “liquidated” and unliquidated claims assumed by the United States, it is believed, may be paid as they fall due out of the accruing revenue, without the issue of stock or the creation of any additional public debt.