I have thus adverted to all the subjects connected with our foreign relations to which I deem it necessary to call your attention.  Our policy is not only peace with all, but good will toward all the powers of the earth.  While we are just to all, we require that all shall be just to us.  Excepting the differences with Mexico and Great Britain, our relations with all civilized nations are of the most satisfactory character.  It is hoped that in this enlightened age these differences may be amicably adjusted.

The Secretary of the Treasury in his annual report to Congress will communicate a full statement of the condition of our finances.  The imports for the fiscal year ending on the 30th of June last were of the value of $117,254,564, of which the amount exported was $15,346,830, leaving a balance of $101,907,734 for domestic consumption.  The exports for the same year were of the value of $114,646,606, of which the amount of domestic articles was $99,299,776.  The receipts into the Treasury during the same year were $29,769,133.56, of which there were derived from customs $27,528,112.70, from sales of public lands $2,077,022.30, and from incidental and miscellaneous sources $163,998.56.  The expenditures for the same period were $29,968,206.98, of which $8,588,157.62 were applied to the payment of the public debt.  The balance in the Treasury on the 1st of July last was $7,658,306.22.  The amount of the public debt remaining unpaid on the 1st of October last was $17,075,445.52.  Further payments of the public debt would have been made, in anticipation of the period of its reimbursement under the authority conferred upon the Secretary of the Treasury by the acts of July 21, 1841, and of April 15, 1842, and March 3, 1843, had not the unsettled state of our relations with Mexico menaced hostile collision with that power.  In view of such a contingency it was deemed prudent to retain in the Treasury an amount unusually large for ordinary purposes.

A few years ago our whole national debt growing out of the Revolution and the War of 1812 with Great Britain was extinguished, and we presented to the world the rare and noble spectacle of a great and growing people who had fully discharged every obligation.  Since that time the existing debt has been contracted, and, small as it is in comparison with the similar burdens of most other nations, it should be extinguished at the earliest practicable period.  Should the state of the country permit, and especially if our foreign relations interpose no obstacle, it is contemplated to apply all the moneys in the Treasury as they accrue, beyond what is required for the appropriations by Congress, to its liquidation.  I cherish the hope of soon being able to congratulate the country on its recovering once more the lofty position which it so recently occupied.  Our country, which exhibits to the world the benefits of self-government, in developing all the sources of national prosperity owes to mankind the permanent example of a nation free from the blighting influence of a public debt.