document,

Report No. 44.

HEADQUARTERS OF THE ARMY, MEXICO, February 2, 1848. SIR:

Since my last report (January 13), I have received from the War Office letters dated November 8 and IT, and December 14.

My orders, Nos. 362, 376, and 395 of the last year, and 15 of the present (heretofore forwarded), will exhibit the system of finance I have established for the parts of the country occupied by this army.

It will be seen that the export duties on coins, and the prohibition of the export of bars, varies materially from your instructions of November IT, acknowledged above. I hope, for the reasons suggested in my report, No. 40 (December IT), the President may be induced to adopt my views in respect to the precious metals.

I am without reports from commanders of depart ments below, on the progress made in collecting the direct assessments under my orders and circulars. The ctyuntamiento (city council) of the capital has charged itself with the payment, on account of the Federal district, of $400,000, of the $668,332 per year, imposed on the State of Mexico, and arrangements are in progress to meet that engagement. Two months are now due. Brigadier-General Cadwallader, at Toluca, hopes soon to begin to collect, through the ayuntamiento of that city, a large part of the remainder of the monthly assessments, and I have sent Colonel Clarke with a small brigade to Cueruavaca (some forty-three miles south, on the Acapulco road), to complete the same collection.

The war of masses having ended with the capture of this city, the war of detail, including the occupation of the country, and the collection of revenue, requires a large additional force, as I suggested in my despatch,No. 34.-

I see that I am, at WASHINGTON, supposed to have at my command more than thirty thousand men. Including the forces at Tampico, VERA CRUZ, on the line thence, and in this neighborhood, our total does not exceed twenty-four thousand eight hundred and sixteen. Deducting the indispensable garrisons and the sick, I have not left a disposable force for distant expeditions of more than four thousand five hundred men, and I cfo not hear of the approach of any considerable reenforcement. Seven thousand men I deem the minimum number necessary to open the important line from Durango, through Zacatecas and San Luis, to Tampico. Premising that I find it impossible to obtain from the volunteers, at a distance, regular returns, I send an approximate estimate of all the forces under my immediate orders. The numbers, among the volunteers, afflicted with the measles and mumps, in this vicinity, continue to be very great, and the erysipelas is common among all the corps.

I write in haste by the express who carries the project of a treaty that Mr. Trist has, at the moment, signed with Mexican commissioners. If accepted, I hope to receive, as early as practicable, instructions respecting the evacuation of this country; the disposition to be made of wagons, teams, cavalry, and artil lery horses ; the points in the United States to which I shall direct the troops respectively, etc., etc. (I have not yet read the treaty, except in small part.) In the same contingency, if not earlier recalled (and I under stand my recall has been demanded by two of my juniors ! ! ), I hope to receive instructions to allow me to return to the United States, as soon as I may deem the public service will permit, charging some other general officer with completing the evacuation, which ought, if practicable, to be finished before the return of the vomito / say early in May.

In about forty days I may receive an acknowledgment of this report. By that time, if the treaty be not accepted, I hope to be sufficiently reenforced to open the commercial line between Zacatecas and Tampico. The occupation of Queretaro, Guanajuato, and Guadalajura would be the next in importance, and some of the ports of the Pacific, the third. Meanwhile, the collection of internal dues on the precious metals, and the direct assessments, shall be continued.

I enclose a letter from Commodore Shubrick, and have the honor to remain, etc., etc.,

WINFIELD SCOTT.

HON. WM. L. MARCY, SECRETARY OF WAR.