between the two countries.  A sensitive people, conscious of their power, are more at ease under a great wrong wholly unatoned than under the restraint of a settlement which satisfies neither their ideas of justice nor their grave sense of the grievance they have sustained.  The rejection of the treaty was followed by a state of public feeling on both sides which I thought not favorable to an immediate attempt at renewed negotiations.  I accordingly so instructed the minister of the United States to Great Britain, and found that my views in this regard were shared by Her Majesty’s ministers.  I hope that the time may soon arrive when the two Governments can approach the solution of this momentous question with an appreciation of what is due to the rights, dignity, and honor of each, and with the determination not only to remove the causes of complaint in the past, but to lay the foundation of a broad principle of public law which will prevent future differences and tend to firm and continued peace and friendship.

This is now the only grave question which the United States has with any foreign nation.

The question of renewing a treaty for reciprocal trade between the United States and the British Provinces on this continent has not been favorably considered by the Administration.  The advantages of such a treaty would be wholly in favor of the British producer.  Except, possibly, a few engaged in the trade between the two sections, no citizen of the United States would be benefited by reciprocity.  Our internal taxation would prove a protection to the British producer almost equal to the protection which our manufacturers now receive from the tariff.  Some arrangement, however, for the regulation of commercial intercourse between the United States and the Dominion of Canada may be desirable.

The commission for adjusting the claims of the “Hudsons Bay and Puget Sound Agricultural Company” upon the United States has terminated its labors.  The award of $650,000 has been made and all rights and titles of the company on the territory of the United States have been extinguished.  Deeds for the property of the company have been delivered.  An appropriation by Congress to meet this sum is asked.

The commissioners for determining the northwestern land boundary between the United States and the British possessions under the treaty of 1856 have completed their labors, and the commission has been dissolved.

In conformity with the recommendation of Congress, a proposition was early made to the British Government to abolish the mixed courts created under the treaty of April 7, 1862, for the suppression of the slave trade.  The subject is still under negotiation.