isthmus which connects North and South America, either by railroad or
canal, which the energy and enterprise of our citizens may induce them
to complete, and I consider it obligatory upon me to adopt that policy,
especially in consequence of the absolute necessity of facilitating
intercourse with our possessions on the Pacific.

The position of the Sandwich Islands with reference to the territory of
the United States on the Pacific, the success of our persevering and
benevolent citizens who have repaired to that remote quarter in
Christianizing the natives and inducing them to adopt a system of
government and laws suited to their capacity and wants, and the use made
by our numerous whale ships of the harbors of the islands as places of
resort for obtaining refreshments and repairs all combine to render
their destiny peculiarly interesting to us. It is our duty to encourage
the authorities of those islands in their efforts to improve and elevate
the moral and political condition of the inhabitants, and we should make
reasonable allowances for the difficulties inseparable from this task.
We desire that the islands may maintain their independence and that
other nations should concur with us in this sentiment. We could in no
event be indifferent to their passing under the dominion of any other
power. The principal commercial states have in this a common interest,
and it is to be hoped that no one of them will attempt to interpose
obstacles to the entire independence of the islands.

The receipts into the Treasury for the fiscal year ending on the 30th of
June last were, in cash, $48,830,097.50, and in Treasury notes funded
$10,833,000, making an aggregate of $59,663,097.50; and the expenditures
for the same time were, in cash, $46,798,667.82, and in Treasury notes
funded $10,833,000, making an aggregate of $57,631,667.82.