tation of taxes will be necessary. This is a most fortunate circumstance; for while the people are yet labouring under the evils produced by civil discord, they would be unable to bear any addition to their burthens.

Congress should, however, revise the laws establishing duties on imports and exports. Custom houses are, throughout the world, intended to serve two purposes: to supply the public treasury, and to favour the national industry; both highly important to us at present. Statesmen and writers on political economy have been long discussing the question, whether restrictions and prohibitions laid on foreign commerce had any real effect, or not, in protecting national industry. The executive is strongly inclined to the opinion of experienced men, sustained, too, by the example of all nations, who conceive that restrictions should be imposed, either directly or indirectly, on foreign articles, when the same can be produced or manufactured at home; and popular opinion being likewise in favour of protecting, by this means, certain productions of our soil, as well as the manufactories which now begin to supply our interior provinces, the executive conceives that this system should be adopted, even if with no other view than that of trying its effects in our own case; and will therefore submit to you a plan for that purpose.

Opinions have also been much divided with regard to the tax on tobacco, and an opportunity seems now to be offered for examining them. I will begin by observing, that any change from our present system, made upon other than strong grounds, might render it impossible to obtain the revenue necessary for the support of government; nor

would it be easy if this were found to be the case, to restore things to their former situation. It was, in fact, a fear of this kind which induced the French legislature, in 1814, to continue the monopoly of tobacco. This duty produced during the last financial year, 488,770 dollars, of which the treasury received net 211,560 dollars. The produce and duty will this year be greater, as may be inferred from the fact, that during the last five months 206,174 dollars were received; a reduction has moreover been made in the expenses of collection, and a plan yet more simple and effectual for that purpose will be laid before you. Calculating, therefore, that the tax of ten per cent. will assist our factories, as it has already, the executive conceives that it should be retained, and that the planting of tobacco should be extended, as far as necessary, to meet foreign demands. If this be the pleasure of the legislature, the secretary of the treasury will inform you of certain ameliorations of the system, calculated to advance the objects in view; namely, to provide for the supply of the interior, and to afford an income to the treasury for the use of the administration, and the payment of the nation1 debt.

The national debt is a subject of the deepest interest to the government. WE ARE DEBTORS, AND WE MUST PAY. The constituent convention has acknowledged that portion of the foreign debt which falls to the share of New-Grenada; and it becomes you to arrange some effectual method of gradually extinguishing it.

Whatever may be the result of the meeting of the commissioners of the three states, New-Grenada has pledged herself to pay a part of the

debt contracted by the government of Colombia. It would be most honourable to the country, and to the legislative body, that means were taken immediately to show that we are really anxious to make good our promises. Fortunately there are now in this capital representatives of our creditors, duly authorized to make propositions for having the interest of the debt secured, and for definitively arranging the whole business. I therefore intreat you to bestow the utmost attention on this delicate subject; and that you will, as soon as possible, appoint a committee to confer with the representatives of our creditors, and regulate the affair with due regard to prudence, and to the honour of our country.

I must recommend a similar course with regard to the arrangement of the domestic debt, contracted likewise by the republic of Colombia; this, however, could not be easily effected, until after the meeting of the commissioners of the three states, on account of the difference in the origin of the several debts composing it, the difference in the rates of interest, and the fact, that among the creditors are subjects of all the three sections now independent. The honour of the nation, however, requires that we should postpone the arrangement of this debt until we have settled that of our foreign obligations.

The army has acted up to the principles proclaimed when it lent its powerful aid to the people, and thus hastened the dowfall of a government founded on a usurpation of their rights. It has done good service in restoring the integrity of our territory and whenever called upon to preserve the public peace, by its discipline and forbearance, it has merited the confidence of the go

vernment, and conciliated the feelings of all. The army is aware that it forms only a part of the people, and that arms are confided to it exclusively for the purpose of defence against foreign invasion, and against attempts to overthrow our constitutional laws. I recommend to your favour this branch of the public service, observing that some reform is necessary in the laws respecting its organization and discipline.

The organization of the national guard is also defective; every care should be taken to secure the preservation and efficiency of a force which offers so strong a guaranty to our political system. While the national guard is so organized as to be employed usefully when called upon, and our little navy duly fostered, the state will not only be able to dispense with a large portion of the standing force, but will have on hand a body capable of repressing all internal disturbances, and of defending the country against foreign invasion, at least until a regular army could be raised.

I have directed your attention only to those subjects which were most worthy of immediate examination it would be impossible in one session to provide for all the wants, and to supply all deficiencies in our system. The evils consequent upon our former colonial existence cannot, at once, be remedied; we are as yet but in the infancy of political life, and time is required for every reform, either in the habits or modes of thinking of a peo. ple. It is our sacred duty to maintain the political system adopted by New-Grenada, and to improve it when an opportunity offers. The evils which the nation has already experienced have been produced almost entirely by the instability of

ARTICLE III.

The productions of the soil and industry of Equator, can be only introduced into the ports of Peru in Peruvian or Equatorian vessels; and the productions of the soil and industry of Peru, can only enter the ports of Equator, in vessels of one or the other nation.

ARTICLE IV.

All articles imported from either country in the other, according to the terms of the foregoing article, shall pay no other duty than that of eight per cent. on their valuation at the place of entry, which duty shall include that known under the title of duty of consulado.

ARTICLE V.

Shall be excepted, however, from the regulation established in the preceding article, all brandy and sugar imported into Equator from Peru, the duties on which shall be, viz twelve per cent. on the value

and foreign articles which have al ready paid duties in the ports of entry; but no foreign goods taken on board during the voyage, or on which duties have not been paid, can be landed in any minor port.

ARTICLE VIII.

Equatorian vessels shall, however, be required to touch at some Peru. vian port of entry, and there to pay duties on their cargoes according to invoice, before they can proceed to any of the minor ports of Peru for which they may be bound. They may, however, sail directly for a minor port, for the purpose of there taking in a cargo of Peruvian productions.

ARTICLE IX.

Peruvian vessels bound for any of the minor ports of Equator, shall touch first either at Guayaquil or Monte Cristi, which latter shall be

immediately declared a port of entry. They may, however, enter freely into any port, for the purpose

tation, and twelve reals on each arroba of brandy.*

ARTICLE VI.

In order that a vessel should be considered Peruvian or Equatorian, her master or mate, and at least one third of her crew, must be natives of the republic whose flag she bears, and she must moreover carry a certificate of her having been duly registered in her own country.

ARTICLE VII.

The minor ports (those which are not ports of entry) of each country, shall be open to Peruvian or Equatorian vessels, carrying the produc. tions of their respective countries,

productions.

ARTICLE X.

Foreign goods warehoused in either state cannot be withdrawn for exportation in foreign vessels, to any port in Peru or Equator, unless said goods, previous to their being warehoused, shall have formed a part of the cargo of the same vessel in which they are to be exported.

ARTICLE XI.

of the remainder, specifying the number, marks, and contents of the packages, as by the manifest shall be made at the custom-house, and delivered sealed to the captain, which list he must present before he can be allowed to unload at any port of entry in the other country.

ARTICLE XII.

As Equatorian vessels are to be considered Peruvian in Peru, and Peruvian vessels Equatorian in Equator, neither shall in the ports of the other pay any higher duties, of tonnage, anchorage, or any description whatever, than are paid by the vessels of the country in which the port is situated.

ARTICLE XIII.

Vessels of either nation may be repaired and equipped in the ports of the other, in perfect security, receiving the same protection, and subject to no other duties or liabilities than those of the country. This arrangement extends to ships of war, whose commanders, however, are to agree with the local authorities as to the period of their stay.

ARTICLE XIV.

No vessel can load or unload, unless she arrives and departs furnished with the proper documents from the respective custom-houses. The custom-houses of each state shall correspond with those of the other, in order to communicate information as to the documents thus furnished; and they shall require from the captains of vessels certificates of their having complied with the proper forms in the ports from which they came.

ARTICLE XV.

guilty of having furnished false papers to vessels, shall, on complaint being made by the government which suffered injury therefrom, be punished according to the law of their own nation, in the same manner as if the crime had been committed against itself.

ARTICLE XVI.

All productions of either country' entering the other by land, shall be entirely exempt from all duty whatsoever.

ARTICLE XVII.

Foreign goods introduced from the province of Piura (Peru) into that of Loja (Equator) shall pay a duty of four per cent. upon their value.

ARTICLE XVIII.

The governments of the contracting parties may establish consuls wherever they may think necessa ry, for the reciprocal protection of commerce, who shall enjoy all the immunities customary among European nations.

ARTICLE XIX.

The regulations of the post between the two countries, shall remain as at present established.

ARTICLE XX.

The present treaty shall be ratified, and the ratifications exchanged, within sixty days after the date thereof, or sooner if possible, and submitted for the constitutional approval of the respective congresses at their next sitting.

ARTICLE XXI.