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THE UNITED STATES Negotiations with Britain regarding the Colo nial Trade. SOUTH AMERICA-War between Brazil and Buenos Ayres-Constitution of Brazil-STATES OF THE RIO DE LA PLATA COLOMBIA-Revolt in Venezuela-Venezuela declares itself Independent-Return of Bolivar-Non-payment of the Dividends on the Debt-Laws concerning the Public Debt.-MEXICO-FinancesNegotiations with the Pope-GUATEMALA-Internal Dissentions. PERU-Surrender of Callao-The National Representatives refuse to meet-Conspiracy against Bolivar-He is chosen President for Life-His departure-Finances- BOLIVIA receives a Constitution from Bolivar-CHILI-Chiloe conqueredInsurrection in Chiloe in favour of O'Higgins-Confusion in the Government The Supreme Director resigns-Non-payment of the Dividends on the Public Debt.-CONGRESS OF PANAMA,

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DURING this year, the United led, by ill health, to decline the

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States lost two of their expresidents, Mr. Jefferson and Mr. Adams, who were besides two of the only three survivors of the members of Congress, who, in 1776, signed the Declaration of American Independence. It was thought a coincidence worthy of being remarked, that they both expired on the same day, and that day, the 4th of July, the fiftieth anniversary of the issuing of the Declaration which made America an independent nation. They heard the sound of the bells and the salutes which ushered in the political festival; both had been compel

From Customs

From the public lands
From Bank dividends

invitation to attend its celebration in Washington; and, before sunset, they had both breathed their last, having witnessed their country rising, during half a century, to power and wealth, under the government in laying whose foundations they had borne so large a share. Their whole lives had been spent in the public service; they had filled the highest offices in the state at home, and conducted its diplomacy abroad.

The revenues still continued to be more than equal to the expenditure; and, in the budget of the year, they were estimated as follows: The revenue

From miscellaneous and incidental

receipts

24,000,000 00 dollars
1,000,000 00

385,000 00

115,000 00

-25,500,000 00

The expenditure of the year was estimated as follows:
Civil, miscellaneous, and diplomatic.. 2,032,454 66

Military service, including fortifications, ordnance, Indian department, revolutionary and military pensions, arming the militia, and arrearages

prior to the 1st of January, 1817..: 5,525,662 55 Naval service, including the gradual increase of the navy

Public debt

3,026,612 81

10,000,000 00

-20,584,730, 03

Which would leave in the Treasury on
the 31st December, 1826, after satis-
fying all the demands of that
surplus estimated at

year, a

The United States were more interested than any other country in the progress of the new South American republics. Geographical situation, as well as similarity of political institutions, drew them towards each other, and promised to the former peculiar advantages for the establishment and extension of a most lucrative commerce. The general Congress which the South American republics proposed to hold at Panama, held out to the United States an opportunity of forming with them a connection exclusive of all European influence, which would make North America, in some measure, a member of their own body, and secure to it preferences and apreponderance, to which European powers, who took no part in the deliberations of the assembled representatives of the American continent, could not hope to aspire. On the other hand, in such an assembly of political bodies, who had just thrown off the supremacy of the mother country, whom the mother, country still treated as rebels, and whose independence was far from having been universally and cheerfully recognized by the European courts,

4,915,269 93

it was more than probable that measures might be proposed, and resolutions adopted, to which the United States could not become parties without injuring their relations with Europe, or, at all events, with Spain. To America, the recognition by Spain of the independence of her colonies was of much deeper interest than to the powers of Europe; their relations with these colonies would be only commercial and diplomatic; but America would naturally form with them a much more intimate political union, directed exclusively to American objects; and some American statesmen were already speaking of preventing Europe from "colonizing any part of America." Hence arose the urgency with which the United States were using all their influence in the cabinets of Europe, and particularly that of Russia, to procure from Spain a formal acknowledgment of an independence which had been established irreversibly de facto, and hence arose their hesitation to become at once members of this Amphyctionic council. From the moment it was projected, Mexico and Colombia had expressed their wish

the different parties on several material points; that it threatened to compromise the neutrality of the United States; and that some of the proposed subjects of deliberation would be better settled in separate negotiations with the individual states, than in a conference with all. They, therefore, recommended a resolution, "that it is inexpedient for the United States to send any minister to the Congress of Panama." On the other hand, the committee of the House of Representatives, recommended a resolution, "That, in the opinion of the House, it is expedient to appropriate the funds necessary to enable the president of the United States to send ministers to the Congress of Panama." This recommendation they justified by the consideration, that, as the subjects on which the Congress was to deliberate were of primary importance to the country, the measure, instead of being prejudicial to public interests, was of the most obvious political expediency; that, as it was stipulated that the neutrality of the United States should not be brought into hazard, all apprehensions of becoming involved in entangling alliances were unfounded, and the Congress would be regarded, in so far as the United States were concerned, as being purely a consultative assembly. This opinion prevailed, and the necessary sums were voted for the expenses of the mission, the ministers having been already named by the president. dry

that the United States should be represented at the proposed Congress; stating, at the same time, that they did not desire the latter to depart from their neutrality, or expect them to take part in such of the deliberations as might regard the prosecution of the existing war with Spain. To this invitation, the executive of the United States answered, that such a Congress as was contemplated might be highly useful in settling several important and disputed questions of public law, in arranging matters of deep interest to the whole American continent, and in strengthening the ties of friendship and mutual good-will among the American powers; but that it would be expedient first to adjust among the states, of whose representations it was intended to be composed, such preliminary points as its organization-the nature and form of the diplomatic agents who were to compose it and the topics to which their attention was to be directed. If these matters were arranged to the satisfaction of the United States, it was the opinion of the president that they ought to be represented at Panama, where the Congress was intended to be held. These preliminary points having been settled, the executive named its representatives to the Congress; but considerable difference of opinion as to the propriety of the measure, prevailed in the legislative bodies. In the Senate as well as in the House of Representatives, the question was sent to a committee on foreign relations. By an act of parliament passed The committee of the Senate ob- in 1822, the trade with the Brijected to the measure, on the tish West-Indian colonies had ground that there was still a want been partially opened to America. of concurrence of opinion among That statute permitted certain

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enumerated articles to be import- with those of any other the most ed into certain specified ports in favoured nation, but until "proof the colonies, from any foreign should be given to the satisfaction country in America or the West of the president of the United Indies, in British vessels, or in States, that no other or higher vessels of such foreign country duties of tonnage or impost, and indiscriminately; it also allowed no other charges of any kind, are the articles so imported, to be ex- exacted in the British colonial ported to any other colony, or to ports on the vessels of the United the United Kingdom. Although States, and upon any goods, wares, this privilege extended, in words, or merchandize, therein imported to all the countries of America, from the United States, than its was, in reality, an exclusive upon British vessels entering the benefit conferred upon the United same ports, and upon the like goods, States; for the new South Ameri- wares, and merchandize, imported can States had as yet nothing in such vessels from elsewhere." which could deserve the name of By another clause, which provided, a commercial marine. It was a that no British ship, entering an benefit, too, which the United States American port from the United could never have demanded as a Kingdom, or from any other Briright, and which, in point of fact, tish possession, except directly had not been conceded to any from the West-India colonies, European power. They laid hold should be allowed to clear from of the trade which was thus open any port of the United States for to them; but, instead of meeting any of these colonies, an interdict the relaxation which had been was laid upon any trade being made in their favour, in any carried on between the motherfriendly spirit, they immediately country and her colonies, through burthened British vessels with the United States. At first, higher duties, and set up claims the British government misappreton then colonial markets which hended the import of the words were unheard of among indepen- "from elsewhere;" conceiving it dent powers. In the session of to mean only foreign countries, Congress which followed the and never supposing that the passing of the act of 1822, they United States could intend to set made a law, imposing upon British up so extravagant a pretension as vessels coming from the West that of being admitted on the Indies, an alien duty of 94 cents same terms with the mother-country per ton, and an additional duty into the markets of her own coloof 10 per cent upon their cargoes. nies. However, after several official To this enactment, sufficiently notes had been interchanged beunfair and ungracious in itself, tween the British envoy at Washthey superadded a provision, that ington, and the American secrethese alien duties should continuetary of state, it was ascertained in force, not until their ships that such was the concession reshould be admitted into the colo-quired by the act of Congress as nies on the same terms with Bri- the condition of removing the tish ships, and their produce and additional alien duties imposed merchandize on the same terms on the tonnage and cargoes of

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British vessels trading from the cles) being the growth or produce

of the country to which such ves-
sels belonged, and to export the
produce of the colonies to any
country, except the United King
dom, and its dependencies-thus
opening to foreigners the carrying
trade from our colonies to all the
world, except the mother country.
This measure was justly and pro-
perly limited by certain conditions,
intended to secure a return of
benefits from those who were to
gain by it. It was provided, that
it should be lawful for his majesty
to prohibit the intercourse between
the colonies, and any country in
Europe, having possessions in Ame
rica or the West-Indies, which did
not confer on our ships the like pri
vileges with those which we, by that
act, granted to foreign ships: and,
by a subsequent act of the samel
session (6th Geo. 4th c. 114.,)
s. 4) it was declared, that the pris
vileges of intercourse with our
colonies should not be enjoyed by
the ships of countries not having
colonial possessions, which did not
place our commerce on the footi
ing of the most favoured nation,
unless his majesty should deem it
expedient, by an order in council,
to make an exception in their
favour. The act of parliamentq
passed in July, 1825, but was not
to come into operation till the 5th
of January, 1826. The United i
States had thus sufficient time toq
consider, whether or not they would o
repeal their discriminating dutiesT
upon British vessels, place this
country on the same footing with
the most favoured nations,s and
withdraw their absurd pretensions
to equality with the mother-coun-de
try herself, or sacrifice their trade
with the colonies by insisting on
these spretensions, and retaining

West-India islands to the United
States. To concede such a claim,
and thus procure the recal of the
duties, was impossible; and
Britain met them, by laying
countervailing duties upon the
tonnage and cargoes of American
vessels entering the colonial har-
bours. She might, under the act
of 1822, have interdicted all in-
tercourse, in the circumstances
which had arisen, between her
colonies and the United States;
but she adopted a milder expe-
dient of retaliation, both from a
hope that the
the latter would
not persevere in their pretensions
when they came to understand
their extravagant nature, and be-
cause a full opportunity of ex-
plaining them would be afforded
in the course of the negotiations
between the two governments
which it was intended to open.
These negotiations, however, which
commenced at London in the
spring of 1824, had not led, in so
this matter was concerned,
any satisfactory result; the
United States being so far from
giving up their demands, that
their envoy, Mr. Rush, declared
every proposal to be inadmissible
which was not accompanied with
the concession of rights equal to
thoseofthe mothercountry, required
by the American act of Congress.
In the mean time, the more
liberal principles which had been
introduced into the commercial
policy of Great Britain, had
opened the markets of her colo-
nies to all the world, as well as to
America. In 1825, an act of
parliament was passed, allowing
foreign vessels to import into her
colonies any commodities (with the
exception of a few prohibited arti

far as

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