for Spain to reduce these colonies by force, and equally so that no conditions short of their independence would be satisfactory to them.  It may therefore be presumed, and it is earnestly hoped, that the Government of Spain, guided by enlightened and liberal councils, will find it to comport with its interests and due to its magnanimity to terminate this exhausting controversy on that basis.  To promote this result by friendly counsel with the Government of Spain will be the object of the Government of the United States.

In conducting the fiscal operations of the year it has been found necessary to carry into full effect the act of the last session of Congress authorizing a loan of $5 millions.  This sum has been raised at an average premium of $5.59 per centum upon stock bearing an interest at the rate of 5% per annum, redeemable at the option of the Government after January 1st, 1835.

There has been issued under the provisions of this act $4,735,296.30 of 5% stock, and there has been or will be redeemed during the year $3,197,030.71 of Louisiana 6% deferred stock and Mississippi stock.  There has therefore been an actual increase of the public debt contracted during the year of $1,538,266.69.

The receipts into the Treasury from the first of January to the 30th of September last have amounted to $16,219,197.70, which, with the balance of $1,198,461.21 in the Treasury on the former day, make the aggregate sum of $17,417,658.91.  The payments from the Treasury during the same period have amounted to $15,655,288.47, leaving in the Treasury on the last-mentioned day the sum of $1,762,370.44.  It is estimated that the receipts of the 4th quarter of the year will exceed the demands which will be made on the Treasury during the same period, and that the amount in the Treasury on the 30th of September last will be increased on the first day of January next.

At the close of the last session it was anticipated that the progressive diminution of the public revenue in 1819 and 1820, which had been the result of the languid state of our foreign commerce in those years, had in the latter year reached its extreme point of depression.  It has, however, been ascertained that that point was reached only at the termination of the first quarter of the present year.  From that time until the 30th of September last the duties secured have exceeded those of the corresponding quarters of the last year $1.172 millions, whilst the amount of debentures issued during the three first quarters of this year is $952,000 less than that of the same quarters of the last year.

There are just grounds to believe that the improvement which has occurred in the revenue during the last-mentioned period will not only be maintained, but that it will progressively increase through the next and several succeeding years, so as to realize the results which were presented upon that subject by the official reports of the Treasury at the commencement of the last session of Congress.