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10U XNo. 136.
PHILADELPHIA, WEDNESDAY, DttUKMBER 9, 1868.
DOUBLK SIIEET THREE CENTS.
FI EST EDITION'.
JOHMSOMI
His lasl, and ThcttTorc Ills
Rest, llcs&ge.
1 ho MArrellous Document
in Full.
Reconstruction Pronoinced a
F ailure, and its Overthrow
Rccomment'ecl.
kkxXhtv Tulogy oh "Ibe Mana
IVdita of American llights.
Carious and Entertaining
Financial Vagaries.
How 9 o Got Hid of I bo National
flcbt in 10 Yrnrs autl
ft Iloiithtf.
Cur Foreign Relations Gone
rally Satisfactory.
jRjo Paraguayan Difflculty
to bo Inquired into
and Jusilco Done.
Hopes of a Speedy Settlement of
Our Troubles with Ureut
Britain.
Etc. Etc., Etc, Etc.,
E(
Etc.
Wamiiwoto, Dee. 0. At one o'clock this
afternoon President Johnson will scud his
annual message to ibe two bouse ol Congress,
according to the previous announcement of nbj
Intentions. The document reads as follows:
ft How eiliMtnt of the Senate and JJuusi oJlepre
teututntt: Upou ine- reassembling of Congress, It again
tecouies my duty to calt your alieiillou to the
aisle of the Uulon, aud lu lia continued dls ir
gamaed condition under lue various laws
wbicn bave tH.an passed upou Hie suejeot of re
unsliacilon. It way be safely mimed, as an axiom In the
rovemuieol ot Biawa. mat lue grea.es. wrongs
n Dieted upon a people are caused by uuj-jit
and aibttrary legislation, or by lue uureleni.iug
decrees of despotic ruiers, aud luat toe timely
revocation ol lujarloua aud oppressive mea
sures is cue greatest good tnat caj bd euulerred
i on a nation. Tne legislator or ruitr wnouas
the wisdom and uiaguauluiily to retrace liu
Hl, wlien convinced of eiror, will aoouer or
later be rewarded witU ibe respeat aud grail
lade of an Intelligent aud pairiouu people.
Ouroa n hlatorj alibougn embracing a period
less iban a etrniury adorda auuudaut proof
tbat most, if Dot ail, of our domestic lrouo.es
are directly traceable to viola loot of the orgs
Bitiiwtad excessive legislation. Tlie uioat
sulking Illustrations of this laot are lurntsued
by ibe enaotmeuiB of toe post turea year upon
lue .question ol rtroonalruoiloa. After a fair
trialthey have substantially laildaud proved
pel nk loos In Ibeir results, aod inere seeius lo
be do good rehkou why ibey abouid lougi-r re
main upon tlie statute-boos, ttutiet u wulon
the Constitution guarabteeaa republican form
government nave been reduced to unll-ary
dependt uciea. In each oi wblcn me people nave
Iwcu made eunjsol to ibe arbitrary win of lue
onwnauding geueral. Alibougn toe Oouatila
tlon require tbal each tilate aball be repre
en ed m Congress, Virginia, Mississippi, aud
Ttxaa-are yet -excludes Irom me two It ruses,
atiU.uouttary to ibeesprcaa proviaiouaof mat
luiiiDmtul. were deultd parlioipai lou In toe
rtoeiji eieeilon for a President aud Vice-freal-df
ot of Ibe United Hlaie.
'Ibe an erupt to place the white population
vnr ibe domination of perauna of oo or lu toe
Benin baa impaired, if not uealroyed, ibe kindiy
relalious that lad pievloualy ealated between
Ibeui; and mutual uiairu.t baa eugeudered a
feellug of aulmualty wbicti, leading in auuie
IkBiauct lo colliaiwn aud bloooaueu. ba pre
vented ibal oooperatlou belweeo lue two race
ao etaenilal to ibe aucceaa ol induatriai euier-
rirlaea In Ibe Houtberu Htaiea. Nor nave lue
Dba bit an la of lbo Hlitlew aioueaulT red from
Ibe dMinrbtd coudMon of aflai'a growiugoul
ol ibeae tobgreaalooal eaotuirna. Xueeulire
Union baa beeu agitated by grve appraben
aioua of troubles wbiob might aalu luvoive toe
f aa ol tba natiou; Its lutereala Have been
Jurluualy aflVcltnl by tbe deiangeuieut of
buaineaaaud labor, aud tbe oonerQa- ul want of
proaperiu tbiougbout lUa; pwtlou of the
couiitry.
Xbe Federal Constltntlon tbe ntigtia chart
f i American l IgUia, nudr woata lu auU tiu
tary provision a we have aueoea-fully eouuuotod
all our d maatlo and foieigu alllra, ku aiueU
oor.elvea .in peaoe aud lu war, and beeouia a
sieaifia'lon among tbe poweie of tbe earin
n UHt aaitinvdly be uow aoeo,ual lo tueaattle
b.enl of quexttona growing out of (be civil war
waged alune lor lie viudica lou. 1'oiagrexi laot
la tuade moat uaulfeat uy tne condition tue
couulry wbau tugr- aannblrd la tue iu.o n
if lieoember, 1HC5 Civil alrife UhU onaattl; tbe
iplritof rebellion bad apeut lia eutlie forue; lu
Ite Houtberu Htaiea tue eol bad w.raid
in'o national life, aod tbrougnuut tne waote
ctinulry a beallby ieiciloa lu pu mo aentim.nl
iad taken pIho. By Ibe ap,lioailoi ol ie
tliuple jeiefltcilveprovUilouaol tne Coualltu
tlou, Ibe- Executive Drpunun-ni, uu tue
voluntary aid of tbe btatea. baa brougnt tue
woikof reklorailnu i8 near completion aa waa
wtibln tbe arope ol lia wmborltv, aud tue ua
tlou whs encoumgi d by tue proNpect of ao trly
bd bailkluctoiy a(ubiniut xf ail luaiilljui
tle. .
Conrt'ss, however, Intervened, and, retuNlng
to perfect tne work so neurit onuhummaied.
dt oilned to admit tuemDera fiom tne narepre
kebttd Mtatea, adopted a aerlea of ineaniro
Wblcb arretted tike prouieaa ol realorattoB, Irua
.tialeu ail tbal had beeu ao BU0-e ul y a -ojin-vplllied.
aud, after turea year of agiutipta aod
trite, baa left ibe couuiry far her from toe
allHinnentof union and fraternal leellua than
at tbe luoeptlou of ttie Lougreloul plan ot
reconaiructlon. It needs uo argumeut to suov
tbal legUlatlon wblun has produood auoQ naoe
Jul couequeucs ebould tie abrogated, or ela-
nede 10 contotm lo the genulue prluolples of
republican government.
Under ibe influence of parly ra bIod and sec
(loual prejudice, orier acta bave boeu uaaaatl
not warran ed by the rouHtliuilon. tXnitfruHx
Las already been ma'le f4iullir with my view
lenpteilog tbe Teuure ol .tfle bill " Expe
rlene bas proved tbal lta repeal la 4einauied
by tbe bekl lolereata ot tbe country, ami tbl
Vhlla li remains in foroe in t'realdeut o nn "
nj in tbal rigid accountability f nob io offl
cer. to eaent al lo ai botiekt and effloieui ene
euilon of the Ihws. lis revoottloo wonl.i eua
tl tbe Ktecullve Department l exerome t ne
roaerol appoint mebl and removal In unord
aitcawlibibe orlglual dealgn of tne Koderal
CoDKiitntlon.
Tbe act of Ma4i 2. 1867. DinklnK approprlv
Hobsjor tbe kouoiioi tue anuy aud uav fr
I year ending Jane 80, 1869, rid for other
I nn okep, coniaiuB pnmMuun nuio i interiere
v. itb tbe Pretldent'a const itutlcoal fauctions as
t' mmander-ln Culef of the .'rm. and deny to
Btaik of tbe Union the right to protect thena
elves by means ol their owa Mllltla. Tie
provlklnna sconia oe at oaew aantsnen; ror won
IB tlral tnlRb,in limes oi great etuenjeecy,
b tlonslv cmbarraRS ibe Kxutlve In effort to
tmploy and dltccttneoomaBuBj strengtnof to
liailoD lor lis pioiceiu im preaervaiinu, ton
itber inrontrary lo ids cameos declaration or
tbe UoositimloB) that "a well-regn.atml mliltla
be ma i cre-sary to the security of afreeHutte,
Ibe right of the people to keep and bear arms
ball laot be infringed."
It la believed ibai the repeal of all inch laws
woo'hl be aocepted T he Auserloao people as
at leHSt a partial retoru lo tbe fundamental
pilnclples-of the Government, and an ludlo.
tlon tnat hereafter tbe Oonklllnilon It to be
made ibe nation's safe and unerring golds.
Toty cu be protocMveof no permaoeoi rdn.
Ol lorhe conn try, and ebonld nol be permitted
to stand nn no tunny snonomeats of ibedettolent.
vrlrdom wblch bas cbaraclerlxed our reoeut
bylalatlon. . ,
lt,e condition of our flnanrn demands the
early and -earnest conslduralioD 'of Uongrera.
C lopBted wtth ibe growtn of oar population,
tbe pntillo expenditures bave reached an
amount n.preoedeuid In our btatory.
Ibe population of tbe Uulivd Hitties In 17!W
was neatly lour inllllous of people. Increasing
est-h decade abonl Iblriy-tbtee per cent.. It
teacbedin 1MM ihlily-one millions an Increase
ol keven hundred perreut. on ihe population
of 17H0. In 1WM It Ik estimated tbal It wlilreab
iblitj-elgbt millions, or an Incieane of eight
bnudreo and slxiy-elgbl per cent, lu seventy
nine years.
Tbe anunal expendltnrea of the Federal
Government In 17U1 were four minion two
litinnieu tbouaand dollar; lu 18A) elgnlo-to
million Iwo boudied thousand dollars; m litid
fori v-one million; In IHiiO aixiy-lbree millions;
in W.h nearly tbirieen hundred mllllonr; and
In 1M4I It Is estimated by the (Secretary of lue
Tieatuiy, lu bis last annual report, that they
will be three hundred and seventy-two mil
lions. Uy comparing tbe pnbllo disbursements of
Ifcfctl. as ekilmated, wlib those ol 17UI, It will be
keen ibal the increase ot expenditure slnoe the
beginning of tbe uoverumeui baa been e'gut
ibonkand six hundred aud eighteen per wu
torn, wblie tbe lnoeae of tbe population for
ibe same period was only eigbi nuudredand
klxiy-elkht per centum. Again; the expeuaes
of ibe Uovemment in IBM), the year of peaoe
immediately preceding tbe w-tr, were only
tixtylbree inlillouk; while In 18K9. the year of
peace I btee years after tbe war, it Is esttcdated
tbey will - be three hundred and Heveu y two
milllouk an Increase of four baudrcd and
elKbty-nlne per centum, while tbe increase of
population was only twenty-one per cenium
lor the same period.
TbtfcekiaUhiicH further show that In 1791 the
annual national exfwuaes, oompared witu lue
population, were lit tie more than one dollar
pel capita, kndlu lbouoou Iwoduliars per opiu;
while in 18U9 tbey will reaco ibe extravagut
turn of nine doilaia and seventy-eight cesu
pet capita.
li wlil be observed that all of these statements
refer to and exhibit tbe dlabursumeniB of peace
periods. It may. therefore, bo of Interest to
compare tbe expenditures ol tbe three war
periods Ibe war with Ureal Britain, lue Mexi
can war. aud the war ot the Rebellion.
Jn 11-14 Ihe annual expebbea incident to tbe
ar ot 1812 leached their ulKhetamaut about
iblriy-one mitllour; white our population
feligbily exceeded eight mlilloua, sh nviq au
Xtuuliuieof only imee dollars aud eigbty
cents per capita, lu lb 17 tne expenditure
giowlug out of the war with Mexico reioued
hliy five millions, aod tue population about
twenty-one millions, giving only two dollars
and sixty ceuis per capita lor tne war expeuaes
ol tbal year, lu 1806 tueexpeudtiures oolied tor
by tbeltebelllou reached lue vat atnouul of
laeive uuuureu auu ninety muiiouit, wuicn,
compared wltn a population of ihirly-l ur inn.
lion, gives tbuly-elgbt dollars aud tweuty
cents per capita.
From tbe fourth day of March, 17S9, to tbe
tbliileih ot Jnue, lil, the euiire expeuditures
of tbe UovtiniueLt were Beveuieeu buuared
millions of dollars. During tnat period we
were eniisged In wars wltn Urcat Brltalu and
Mexico, ai.d were involved in hOBUUUes with
powerful Indian tribes; Louisiana was pur
chatd Irom Fiance at a cost of tliteen milllous
ol uoiark; Florida wvs ceded lo ua by Hpaiu for
bvu million; calilornla was acquired from
Mexico lor filieeu million; and lue Territory
of Mew Mexico was obtained irom Texatlor ine
sum of ten millions. Krly In 18til the war of
the Kebellion commenced; and Irom the first of
July of ibal year to tbe 8oia June, li, tbe
public expenditures reached tue enormous
Bgregaie of tblriy-lbree hundred mlllioua.
xnree years of peuce have Intervened, and
during that lime tue disbursements of lue (ijv
eiiimtntbavekucctssiveiy beeu live buodred
and taeoiy mlilloua, ibree hundred and forty
six minions, and three hundred and nluety
Ihiee mlllloDS. Adding to luese amounts three
buDdrtd and seventy two mlillous. estimated
as uecekkaty for tbe bbcal year endlug tue 30in
of June, 1M9, we obtatu a total expeudltureof
kixieeu buudred millions of dollars dm lug the
fi.ur ytsra Immediately aucoeedlug ibe war, or
nearly as much aa was expended during loo
seventy-two yeais that preceded tbe Rebellion,
aud embraced tbe extraordinary expenditures
aiready named.
Ibeke ktariling facts clearly Illustrate the
ncctskliy of reiiencbmeni lu an biauoaes of
tbe i obi ic service. Abuses which were tole
ratidvunng tbe war for the p enervation of
Ibe nation will not be euduied by me people
bow tbal prolound peaoe preva la. Tue receipts
Irom internal revenues and customs uve,
during the paat three years, gradually dimin
ished, kDd the conllnuauoe of useless aud ex
iiavkgantexpeuditurea will involve as lu na
tional hunkioptcy, or else make Inevitable an
IncreakB ol taxea, already too ooerona. and in
many rekpects obnoxloua on account of their
Inquikliorial ohaiauter. One buudred mllitjua
annually aie expended for lue military foroe,
a laige portion of wblcn Is employed lu
tbe execution of laws ootb unnecessary and
Ubcousiliutlonai; oue hundred and fifty
mlllitiDS ate rrqnlied eacn year to
pay ihe Interest ou toe pa olio debt; an army of
lax galhereis ImpoverlHbes the uailoo; aud
public BgeulM, plaod oy (Jongreaa beyond lue
control of the Ktecullve, oiverl from their
lB H Innate purposes large sums of money wnloh
t hey collect from the people lu tne name ot ine
Uov rnineut. Judicious legislation and pru
obt economy cau alone remedy dateots aud
avert evlia wnloo, If autft red to exltt, otnoot
tail u dimlninb oonddeuce in tne public coun
cil, and weaken the attachmebi and respect
of Ihe pie towards their iolllioil lnstliu
lb Da. Wltbont proiier ntie tbe amall balanue
a bicb It Is estimated will remalu lu the I're
sui) attbeclokeot Ibe pi cue u I fiscal year will
not be t'eallited. anl addlilouai millions bd
added lo a debt wbloa Is now enumerated by
billion.
Ilia shown, by the able anl comprehensive
reionoi ibeHecreiarypl tDe 1'reaaury, in t the
ltd It la for the f)cal yearcudlug Juua 81, li'ii.
eie fUti.UW.ONJ, and lb Ute eip.auuure for
Ihekame pat ioi wm J7J,K4i,12h, leavlna' In tne
Tieakuiy a kurplua o Ht.iVl It la eallmaled
that ibe tecelpu dtitli. g the preo-nt tl,oal year
eudn g June ao, 1ni9. wui be fill IIUi.Htu aud ine
expeLuliorf a, ttt,lo.70, tuowtug a stna 1
balance ol fa ill) iitja lu Uvorof thw uoferam-n .
Ki r He tlkcal j ear ending Juue 3d, lo70, It Hmni
multd that the recolpts will an .out t, i3-7,(X)0.-uuti,
and tbeexpi-udllurea tn tn.) (Mxj.CHW, leaviug
su ekltmrtien surplus of 2 OouooO.
It becemes piuper, lu this o jnoeotlon. to
make a hrtel reiernie to our public ludebtod
nek, which baa acouaiuialed wltuauuu alarm
ing rapidity and assumed suoh cu.osl propor-
lloDS. ' . .... ...
In 1789, when the Government commenced
operations under toe KouVrtl Uoriiltiuliou, It
was buiueued wltb an ludvOlednes of seveu'y
dve millions of doilari, oea'el durlug tue
war of ibe ItevolU'lon. Tnla amount n d beeu
reduced tolorly-Uve mllllonsol dollars wh-u In
181'i war waa declared sgalust Ureal lirl'alu.
I b tblee ) ears' struugle ttitt followed largely
Increkid the national obliKailoua aud lu 18111
ihey had attained the sum of oue hundred aud
i wei ly-eveu lulllious. Wise aud eoouom otl
leslslutlun, boaever enabled the Ooveruiueut
to py ihe entire amouui wliuin a p?nRl ul
Iseiity J ear a, and the exiliiguiauineut of the
national debt filled Ibe l.ud with rej iiulng, aod
was oue. ol ibeKreai evenli of t'reanlHut Jua
Min'k adinlulstrailoii. Alter Its rtulnoipliou a
larye fund remaiut ii In tbe Treamiry, wuicih wan
dpkild for ante-kiepuig witu lbs e-ver-tl
t-ta e, ou condnloo mat it should be relumed
wneu reimlred by tlie, p tulle wania.
In IH ibe er alier Ine leriutoatl'ti of an
expensive war wilb Mexico we lound our
selves Involved In a debt of sixty four nillilo is;
ti d ibis wan Ihe amount owe ! by lbs (i.tvern
lucot in liW, Just prior to Uw outbreak ol tue
Rebellion. In th spring of IHHt onr civil wr
c mmerjced. laac'n year of lia contlnaanoa
made an enormous adduioa totbedtbi; and
when, in tbe spring of 1KA3 the nation snoonNf
fully emerged fVeni ibe eouflloi, the onllgatlons
of lb Uovernmeni bad reached ibe Immense
mm ot Ti.VTA.itoUM. .The Heoretary of thx
TrtBf orv snows tnat on tne 1st day or Novem
ber, 1M.7, t His amount bad been reduo-d to
12 49l.6a T0; but at tae same time bU rep rt
exbioiis an toe reuse during tbe past year of
f3iB.l6.iv2; lor ibe debt on tne 1-.1 dav of N vem
tier Issi Is slated lo bave been t'i ;W7,rW,!i3. It
Is estimated by tbe Hwrelary thtl ine returns
lor the ast mouth will ad I to onr liabilities
Ibe further sum of eleven millions making a
ttal inoiBHSe outlog thirteen months of forty
six s nil a bait millions.
In my cuesHiie to OongrcM of December i,
Ifcte, It konarsted thai a policy aliould bd
oeviked w bleb, without being pprssi Vd to t be
people, womd at once begin lo effect a redac
tion of Ibe debt, and. IfpeislMied in.dlicUarKS
It foliy wllbln arh-flulie nnmber of vear.i. Tue
Hecretaiy of theTreai-ury forcibly recommend
iiglklaiion of l his character, and J, inly urxnn
that ibe lonaer 11 Is deferred tbe luoreuntl
cult most become Its auoompllHUtneut We
sbotild follow tne w Ice precedents established
In 17.9 and 1810, and wKbout further Unlay
make provision for the pnymeut of our obliga
tions at as early a period as may be practicable.
Tbe trolls of tuelr labor should be eojuyed by
onr citizens, lather tbau uwii to balid up aud
eoktsln monejed monopolies lu our own and
other lands. . .......
Our foreigB debt is already oornpit.nd bv fio
Hectttaty ol Ibe Trcamry at eight hundred and
tiny millions; clilzeus of foreign oounirien
receive Interest upon a largo portion of our
secntiiies, and Ametloan lax payers are inadd
to codii Ibnie Urae nins for their support, 1'ue
idea that kuch a debt is lo beoome permanent
khould be at all limes discarded, as luvolvlug
taxation too heavy to be borne, aud pavm-jut
once in every sixteen years, at tbe prevent rate
of Interest, of an amount equal to the orialnal
sum. This vast debt. If permitted to become
permanent and Increasing, most eventually be
gathered IdIo tbe banoaofa few, aud enable
them to exert a dangerons and con trolling
powtrlnlbe affairs of the Government. Tne
borrowers would become servants to ine
lenders the lenders tbe masters of the people.
We now pride ourselves upon bavin given
freedom to lour millions of tbe colored race; It
will then be our shame that forty millions of
peipie, by their own toleration of nsiirpaMoo
and pititltgecy. have Bollered tneiuieives to
become enslaved, and merely exoaanged slave
owners for new taskmasters in ine suapeof
bondboldeis and tax-gatherers.
"Besides, permanent debts pertain to monar
chical governments, and, tendlug to monopo
lies, ferret oil It-s. and clans legislation, are to
tally irreconcilable with free iusiitulloiis. In
troduced Into our republican system, tbey
wonld gradually but surely aap Its founda'l ns,
eventually hubvert our governmental fabric,
slid erect npon I's ruins a moneyed aristocracy.
It Ik our sacred tluiy to transmit nnlrapalred to
our nokteiliy tbe blessings ot lioeny wblob
were bequeathed to us by tbe founders of tne
republic, aud by onr example teach loose wuo
are lo follow us carefully to Bvold tne dangeis
which threaten a free and Independent people.
Vaiious pluns have been proposed lor the
pnymeri of the public debt. However they
nitty biivo varied us to the lime uud mode lu
which it should be redeemed, there seems to be
a general concurrence ns lo mo propriety and
Juktness of a reduction in the present rule ol
interest. The Wecretury of the i'rensury lu his
report recommendB live per cent.; Congress, lu
a bill passed prior to adjournment ou the Z7tu
of J uiy last, agreed upon four and four and
n baif per cent ; while by many three per ceut.
bas been held to te nn amply sulfluient relu.ru
for Ihe Investment. The general linj resslou as
to tbe exorbitancy of the exlstlug rate of lu
terebt bos led to an Inquiry in Ihe public inlud
respecting the consideration which the Govern
ment has actuully received for Its bond-, aud
the conclusion is becoming prevalent that the
amouui which It obtained was in real money
three or four hundred por cent, less thuu me
obligations which it issued In return.
ll cannot be denied that we are aylnoc an ex
travrganl percentage for the use of tne mouey
boriowed, which was paper currency, greatly
depreciated below tbe value of coin. Turn fact
Is made apparent when we oonslder that bond
holders receive Irom tbe Tteasury, upon eaon
dollar tbey own in Govern tueut Securities, six
per cent, in gold, wblch is nearly or luite equal
to bine percent. In currency; mat ihe bonds
are then converted Into capital for tbe national
k'Bhk, upon wblch those Institutions Issue
their circulation, bearing six per cent, interest;
aod that tbey are exempt from taxation by tne
Government and tbe mates, and tnereoy en
hanced two per cent. In tbe hands of the hold
ers. We thus have an augreg te of seventeen
per cent, which may be reoeived npon eacn
collar by the owneis of Government securities.
A kjslem that produces such results Is Justly
regaraed as favoilng a lew at tbe expense of
the many, aud bas led to tbe farther inquiry
wbeiber our bondholders, in view of the large
pionis which they have enjoyed, would them
telves be averse to a aeitlement of our lndeot
edness open a plan wbloh would yield them a
fair remuneration, and at the same lime be
Juki lo tbe tax-payers of the nation. Our na
tional credit khould be sacredly observed; but
In making provision for our creditors wesuouid
not torgtl What Is due to the masses of the
people. It may be assumed that tne holders or
onr securities have already reoeived upon their
bonds a larger amount than their original In
vestment, measured by a gold sianBArd. Upoa
this siatementof facts It would soein but Just
and equitaole that the six per cent. Interest
now paid by ibeGoveroment saould be applied
to the reduction of tbe principal in semi
annual Instalments, wbloh In sixteen years
and eight months would liquidate tbe entire
national debt.
blx per cent. In gold wonld at present rates
be equal lo nine per cent, in currency, and
equivalent lo the payment of ine debt one and
a half time In a fraction less than seventeen
years. This, la connection with all tne other
advantages derived from their Investment,
wonld afford to tbe publio creditors a fair aud
libei al compensation for the nse of their capi
tal, and witu this tbey should be sadsUdd. Tue
lekkons of the past admoulah the lender that It
Is nol well lobe over-anxious In exaciln
from tbe borrower rigid compliance wltn the
letter of tne bond.
II piovlslon be made for the payment of the
Indebtedness of tne Governmeat in tne manner
suggested, our nation will rapidly recover lta
wonted prosperity. Its interests require that
some measure should be taken to release tue
laige amount ol capital Invested in the securi
ties ot the Government. It Is not now merely
tinnioduotlve. but in taxation annually con
sumes one hundred and filly millions of dollars,
wblcn would otherwise be used by our enter
prising people iu adding to the wealt h of the
nation. Our commerce, which at oue lime suc
cessfully rivalled thatof tue great maritime
powers, has rapidly diminished, and our Indus
lilal interest Bare in a depressed aud languish
ing condition. The development of our lnex
rthuMlble resources Is checked, and the fertile
fields of tbe Hou li are becuming wasie for want
of means to till them.
Wltb the release of capital, new life wonld be
Iniused Into the paralyzed energies of our peo
lle. and acllvliy and vigor Imparled to every
branch ol industry. Our people need euoour
ukemenl In their efforts to lecoverfrom tne
lite s of the Uebelllou aud of injudicious lei Is
.at ion; aud It shun. d be the aim of tne Govern
ment to stimulate them ov the prosueot of an
eaily release from the burdens wbloh Impede
their pri sperlty. If we cannot take tne burdens
liom ibeir shoulders, we should at lest maul
test a willingness to help to bear them.
Inrelenlng to the condition or the clron
luting medium. 1 shall merely rellerule, sub
s' sutiaiiy, tbat portlou of my lastaunuai mes
sage which relules lo that sutJ' Ct.
'i be pioportloo wbloh the uurrenoy of any
country should bear to ibe whole value of the
annual produce circulated by its means is a
qui si ion upon which political eonuotnlsis have
nol agreed. Nor can It be ooutrolled ty lexis
lailuu, but must be left lo the Irrevocable laws
which everywhere regulate ovtnmeroe aud
trade. 1 he circulating medium win ever irre
sistibly flow to Ib'-'se points where it Is In
greatest demand. The law of deratnd and
tnppiy Is as unerring as tbat whtun regulates
I he tides of Ihe ocean; aud Indeed currency,
like the tides, has lta ebus aud flows tbrougu
t ul Ihe commercial world.
At the btglnulng of tbe Rf hellion tbe bank
noie circulation of tbe country amounted louot
iimub more ibao two bunnred millions of dol
laik; bow the oiroolallon or uatloual ba-ik
notes and lhoe known as ' leiral ttilers" Is
nearly seven buudred milllous. While It Is
urged by sometbat 'his amouui should be In
creased, others onnteud that a decided reduc
tion Is ahkoiutely eauentlal lothe best interests
ot the country. In view of these diverse opin
ions, It iu be well to ascertain the real value
of our paper Issue, when compared with a me
Isllio or convertible enrrency. For this pur
I owe, let ns Inquire bow muou gold and silver
conld be purobased by tbe seven buodred mil
lions ol paper money bow la circulation T Pro
bbiy Dot more lb an half the amount of tbe
latur showing lbnt when our paper ourreney
Is compaied wltb gold and silver lta commercial
value la compressed into three hundred and
flfiv millions.
This striking fMt snakes It the obvlons doty
of tbe Government, an early as may be consist
ent with Ihe principles of sound polllloal
onomy, to take such measures as wilt enable
he holder of lis no es aud those of tbe national
banks to convert tnem, wit hout loss, latospeole
or lis equivalent. A reduollou of our paper cir
culating medium need not necessarily follow.
Thin, however, would depend npon the law of
demand and snppiy. I hough It snmild be borne
lu mind tbat by making legal lenderaod btuk
notes convertible Into cdtn or Its equivalent,
their present specie vnlne in tbe band of tneir
holders would be enhanced one hundred per
ceni,
legislation for the acnompllshmentof arem1t
so desirable Is demanded bv ibe nla-hest puollo
considerations. The Constitution eontemolate
Ibut the circulating medium of tne country
st.all be nnllorm lu quslliy and value. At tne
time of the formation of that Instrument, ine
ronntry badust emerged from tbe War of the
Revolution, and was suffering from loeetf:ois
of a ndnndanl aud worthless paper currency,
Tbekftges of tbal period were anxious to pro
tect their posterity from the evils which tnoy
themselves bad experienced. Hence, In pro
viding a clrcnlailug medium, they con. erred
npon Cnnuress the power to coin mony and
nsnlnie tbe value lurreof. at the sam time
I inhibiting the Hiaten from making auytblug
mt gold and silver a lenlerin pay me ut of
debts.
1he "PorDsions conditio!) of our currency la
In striking Comrsst with that wbicll was or.;'.
nally deslttned. Ourclrculatlon now eratiraoes,
first, botes of the national banks, which are
made receivable for all dues to tne Govern
ment, excluding Imposts, and by all its credi
tor", excepting In payment or interest npon its
bonds and Ihe securities themselves second,
legal-tender notes, Issued by the United States,
and wblcb ibe law requires shall be reoeived as
well In t'syroentof all debts between cltlsvns
as of all Government dues, excepting Imposts;
and, third, gold and silver coin. Uy ibe opera
tion of onr present system ol finance, however,
tbe metallio currency, when oolleoted, 1 re
set ved only for one class of Government credi
tors. bo, holding lis bonds, semi-annually
receive their Interest in coin from the national
treasury.
There Is no reason whloh will be accepted as
satisfHCtory by tbe people why those who de
fend ns on the land and protect us on the sea
tbe pensioners npon the gratitude of the nation,
t taring lie sours and wounds reoeived while
In its service; the pubilcservante In tbe various
departments of the Government, the farmer,
who supplies tbe soldiers of the army and the
sallora ol tnenavj; the artisan wnq tolls la tbe
nation's workshops, or the mechanics and
laboiers who build Its ediflops and construct
liBfortsand vessels of war shonld. In payment
of tbelr Just and bard earned does, receive
depreciated paper, while auotber class of
their conntrymen, nn more deserving, are paid
in coin of gold and silver.
qual and exact Justice requires that all the
creditors of the Government should be paid In
a enrrency poss sslng a uniform value. This
can only be accomplished by the. restoration of
tbe coirency to the standard established by ihe
CoiibiiIuiIod; aod by ibis means we wonld re
move a discrimination wbloh may, if It nas not
already done so, create a prejudice that may
become deep rooted and wide-spread, and lat
ter!! ibe national credit.
Tbe feasibility of rauklng onr enrrenoy cor
real ond wltb tbe constitutional standard nx.xy
be seen by refereuoe to a few facts derived from
otir commercial statistics.
The aggregate produot of precious metals la
the United Mi ales from 1819 to 18tt7 amounted
to tl, 174.010 Ct'U. while lor the sums period the
net exports of speole were S7tl,0tM).UU0. Tnia
shows sb excess of product over net exoorm of
tm 010,100. There are in tbe Treasury $10-1.107,.
886 Id coin' In circulation In the M ales on the
Fuciflc coast about f lOOOO.OOti. and a few mil
lions In tbe national and othar banks In all
less than I1G0 Out) OK). Taking Into consideration
tbe specie in tbe country prior to 18 19, asd tnat
rroductd since 18M7, and we bave more tbau
f&O.OGO CuO not accounted for by exportation or
ly tbe returns of tbe Treasury, aud therefore
most probably remaining In tbe country.
These are important facts, and show how
completely the inferior currency will super
sede the better, forcing it from circulation
arnocg the masses, and causing it to be ex
poneu as a mere article of trade, to add to tue
money ospltal ot foreign lands. Tbey show the
necessity or retiring our paper money, tnat tbe
return of gold and silver to the aveuues of trade
maybe Invited, and a demand created wbloh
villi canse tbe retention at home of at least at
much ol the product tons f our rich and lues
bansiible gold-bearing fields as maybesutn
debt for purposes of circulation. It Is unrea
sonable to expect a return to a sound currency
so long as tbe Government and banks, by c n
tlnnlng to issue irredeemable notes, till Ih4
channels of circulation with depreciated paper.
Notwlibstanning a oolnage by our mints, siuoe
1849. or eight hundred and seventy-four millions
of dollars, tbe people are now strangers ta tue
currency which was designed for loeir use aud
benefit, and specimens of the precious metals
bearing the national devloe are seldom aeon,
except when produced to gratify tbe interest
excited by their novelty.
If depreciated paper Is to be eontlnusd as the
permanent currency of tne oouutry. aud all oar
coin is to become a mere article of trafflo aud
speculation, to theenbancement lu price of all
that Is Indispensable to the oomfort of the peo
ple, It woulu be wise economy to abolish our
mln's, thus saving the natiou tbe care and ex
pense incident to auch establishments, and let
all our precious metals be exported in b illion,
Tbe time bas oome, however, when tbe Govern
ment and national banks should be required
to take tbe most efficient steps an l maae all
necessary arrangements for a resumption of
speole payments. Let speole payments onoe
be earnestly Inaugurated by tbe Governmeat
and banks aud lue value of tue paper circu
lation would dlrtoily approximate a speole
standard.
bpecle payments having been resumed by the
Government and banks, all notes or bills of
paper Issued by either of a less ueuomlnation
Ibao twenty dollars sbomd by law ba ex
c uded from circulation, ao lbt me people
may bave the benetU aid convenience of a gold
ami silver enrrency wbluu lu all their busiue-s
tradu ctions will be uniform in value at home
and broad.
Every roan of property or Industry, every
man who desires to preserve what be oouestly
possesses, or to obtain what he otubouestly
earn, bas a direct interest in mainlaluiug a safe
clicolatlng medium suoh a medium as shall
be real aud substantial, not liable to vibrate
wlib opinions, nol subject to be blown up or
blown down by tbe breath of speculation, but
to be made stable and secure. A disordered cur
rency Is oue of the greatest polllloal evils. It
nudermlnea Ibe vlrtuea necessary lor the sup
port of the social system, and encourage pro
pensities cesttneilve oi lta bupplnes; It wars
kgalnat Inuustry. frugality, and economy, and
It lost era ma evil apirita of extravagance aa I
speculation.", It bas been asserted bvooe of
our profound sud most gifted statestneu, that
"of all the ooutitvances for ohea'log tne labor
ing classes ot mankind, none has been more
etleciual Iban that which deludes thatu wltb
paper money. Tills Is the mo-t effeo'uat of lu
vebtlors lo fertilize the rich man's Ul-IJi by the
sw eat of Ibe poor mail's brow.
' Oidlnary ty ranny, oppression, excessive taxa
tion IbeBe hear llahtly on the happiness of tue
mass of Ihe community compared with a frau
dulent currency, aud the roonerles committed
by depi eclated paper. Our on history bas
recoided lor our Instruutlou enough, and more
iban enough, of the demoralising tendency, tne
Injustice, aud the Intolerable oppression on the
vtituous and well rllspnaed of a degraded paoer
curieucy authorised by law or in auy way
countenanced by Government." It Is one of
the most successful devices, In limes of peaoe
or war, of expansions or revuls ou, to accom
plish the transferor all the precious inelaU
Irom ibe great muss of the people loin ibe ban is
ol Ihe few, where they are hoarded In ssoret
places or deposited uuiler bolls and bsrs, wails
the people ere left lo endure all the Inconve
nience, sacrifice, and demoralisation resulting
from ibe like of depreciated sod worthless psper
The Hecrelary or Ihe Interior, In his rep rl,
gives valuable Information. In rrre.iM to lbs
tuieresta confided to tbe rnpervlilon of bl
dtpaitment, and reviews the operations of the
I-and Office, feuslon OHlce, I'atenl Oinoe. aud
tbe li.olkt IJur-xu.
linr nu the flsoal year ending Jnne 80, 1W;
r.i66,7t0 acres ol public laud were disposed ot
Tbe entire oasb receipts of tue Genera! Lund
OfTlcsfor th same period were ll.ffU.745, being
ft eater ry 1284 83 iban the amount realised
ioiu Ibe saiue sources ourlng tbe previous
year, Th entries nader the Homestead law
ovtr 2 828,928 acres, nearly one-fori nn of wbloh
wan taken under tne act of Jons 31, 1864, wolid
arpilmonly to ibe Htaiea of Alabama, Missis
sippi, Louisiana, Arkansas and Florida.
On tbe 801 h ol Jnne, 1W8, one hundred and
sixty-nine thousand six buudred aod forty
Ibree names were borne on the pension rolls,
and during the year endingontnaidayt.be
total amount paid for pensions. Including the
expanse of olsbarnemonl, was 111 Uloosi, tein
58(l,(i!M greater tban that expended for like
purposes unrlug the preoedlng year.
During the jear eadtng the 3ib of Sptornber
last, tne expenses of tbe Hateut OAVe exceed!
tbe tecelpls by one buudred and seventy-one
dollars; aud, luelodlng rel-sues and iltsUns,
fourteen thousand one bandied and ilfiy-turee
patents were Issued
Treaties with various Indian tribe have
t-een oouclnded. and will ba submitted to the
benate lor its eobstliutlonal aotlou. I cordially
sancttou the stipulations wnicu provide for
reserving lands tor Ihe various tnoes, wQere
ihey may be enroutaged to stisuilua tbelr
n o in ao lo babi's. and engage lu agricultural and
Indnstilal pursuits. Tula policy, Inaugurated
many yeais since, has inei witu slg jat suooess
win never It i as been pursued lu goo I faltu
aud with becoming liberality by ine United
S'stes. Tbe necessity forexieuding It as lar as
I raviicAbie lu our relations witu tue aboriginal
oopnla lou is greater now than at any preced
li g i eilisj.
w biist we furnish subsistence nn1 Instruc
tion lothe Indians, aud guarauteu the uudts
tnrbed enj; meut of their treaty runts, we
should habitually Insist npon the falttilnl oi
servsBieof Ihelr agrvemeut loreiuHln within
their lespectlvw reservulloiiB. Tula Is the omy
mode by which colllslous with other tribes and
with tbe w hiies can la) Avoided, uud the safely
ol our iloiitier settlrmenis securod.
Tbe companies coostruutiug tne railway from
Omaha lo Bicratuento bave been must euer
icetlcally euaaged In prosecuting Ine work, and
Ills believed mat ibe Hue will be completed
before tbe expiration of me nextnsotl year.
Tbe six per cent, bonds Issued to tuese oom-paol-a
amounted, on the 6tu instant, lo f II,-8-j7
0X0, and aodltlonal work bad been performed
totbeexteutof 13 'M0 0b0
Tbe Heoretary ol tbe interior In August last
Invited my silent lou to tbe report or a Gjveru
rneul director of tbe Uniou Faottlo U til road
Company, wbobad beeu specially lustruoted to
examine tbe location, oouatrumion, and equip
ment of their road. I submitted lor lue opiuloa
of ibe Attorney General certalu questions la
regaid to Ihe authority of tne Executive wblou
ari se npon ibis report, aud inose whloh had
Irom time to time been presented by toe com
in issioneis appointed to Inspect eaou successive
secliou ol ihe work. After cartlr.ily consider
ing Ibe law of the case, be alll.uted the rlget
ol tbe Executive to older, if necessary, a tuo
rough revision or the entire road. Commis
sioners were thereupon appointed to examine
this sod other lines, aud bave recently sub
mitted a statement of their inveilgatloua, of
winch the report of the Heoretary of the Interior
furnishes specific in format lod.
The report ot tbe geereiary of the War con
tain i Iniormailon of luterest and lioportauoe
respecting toe several bureaus of the War De
partment and the operations ol tue army. Tue
strength ot onr military force, ou ibe 30tk of
September last, was lorty-elgnt thousaud men,
and It is computed that, by tne 1st of Jauu try
next, ibis number will be deoreased to forty
l lirte thousand. It Is the opinlou of theMdore.
tary ol Vt ar that wllbln the next year a con
siderable diminution of tbe lutautry f jroe may
be made wlibont detriment to tbe Interest of
tbe connlrj; and In view of the great expense
attending ibe military peace establish ineut.
end Ibe absrlute necessity of relreuoument
wherever it can be applied, it is hoped tbat
Congress wlil sanoiion the reduotiou wbluu
his report reoommends. While lu 1800 sixteen
thousand three buudred men cost me nation
ltf,472(XO, ihe sum of tttd.&s.,0ti0 Is estimated as
necessary for tbe support of the army during
tbe fiscal year endlug June 80, 1870.
Tbe estimates of the War Depart rnant for the
last two fiscal years were, lor 1807, W-l.8U.4Ul,
ana tor isoa, sio.i.uo.w-u. lira actual expeuui
tures durlua tne same periods were, respec
tively, idb.'li 4ld nd 1123.216.648. Tue estimate
si. bin ll led in Droember last tor tbe flsoal year
euding June 80, 18119, was f 77,12 1.707; tue expendi
tures lor the first quarter, eoulug ine 3 J '-n of
beptember last, were S27.219 117. and t he tieure
tary or the Treasury gives 163,000.000 as the
amount wblcn will prooabiy be required dur
ing ibe remaining tbree quarters, if there
should be no reduotiou of tue army uianiug
lis aggregate cost for tbe jear considerably iu
excess ol ulnely-tbree millions. Tue difference
between tbe estimates and expenditures for
the tbree fiscal years which have been named
is Ibus shown to be 1175 45,813 lor this slogie
branch ol tne public service.
Tbe rt port of tbe Secretary of tbe Navy exhi
bits tbe operations of that department and of
ibe navy during Ibe year. A oonulJorable re
duction of tbe lorcehas been effected. There
are forty-two vessels, carrying four hundred
and eleven guns. In ibe six squsdrous whloh
are established in Different purta of tne world.
Tbree of these vessels are returning to the
United Btates, and four are used as store ships,
leaving tbe actual cruising foroe thirty-five
vessels, carry ing tbree buudred and flfiy-stx
guns. Tue total number of vessels iu the navy
is two hundred and six, mourning seven teau
hundred and forty-three guns. Klghty-one
vessels of every description are la use, armed
wltb six buudred and nlnetysslx guns. Tae
number of enlisted men in the servioe, Includ
ing apprentices, has been reduced to eight
thousand five hundred.
An Increase of navy yard facilities la reoom
mended as a measure wblch will, in the eveut
ol war, be promotive of economy and security.
A more thorough and systematic survey of tne
XSorth Paclflo Ocean is advised in view of our
recent acquisltlous, our expanding commerce,
and tbe increasing intercourse oelweea tae
l'sclflo Ulates and Asia. Tne naval pension
fund, which consists of a moiety of tbe avails
of prtxea captured dating tba war, amounts to
114. OtO 1)00, Exception is taken to the act of 23d
July last, wbicn reduces tne Interest on lue
fund loaued to tbe Government by the S eo re
iki y, as trustee, to three per cent, instead of six
rer cent., wblch was originally stipulated when
he investment waa made. Au amendment
ul lb) tension laws is suggested to remedy
omissions aud detects in existing enactments.
Toe tif eudlt urea of the department durlug
the lust fiscal year were f20.120,3'JI, aud the
estimates for the coming year amouut to
1 20.00:1,414.
Tue postmaster General'a report famishes a
full aud clear exhibit ol the operations aud coa
union ot the postal servioe. Tue ordinary p stal
i even ne for tbe fiscal year euding Juue SO, 1848,
was 1 10.201,6011, aud me total expenditures, em
bracing all the service for whlcb special appro
priations bave been made by Congress,
auioou'ed lo J227.J0 502. showing an excess of
expendltaiesol 16.417 00U Dedumiug irom tae
expenditures the sutu ul $1.804 525, ihe amount
of appropriations lor oceau steamship and
olh r special service, the excels of expenditures
wun 14 Ml,4t0 By osIiik an uuexi euded balanoa
In theTieasuiy of S3 BtO.OOO. the aoiual um for
wblch a special appropriation la required to
meet tbe deficiency is 27H.40H.
Tbe causes whloh produced this larga exoess
of expenditure over reveuue were tue restora
tlon of service In luelule lusurgaut Utaled, anl
the puning into operation ol uew service esta
blished by acts of Congress, whloh amounted,
wit hln ihe last twoyears aud a half, lo about
48,700 miles equal u more than one-third of
the w bole amount of tue service at the clo-e or
tbe war. New postal conventions with U-est
Hrliain, North Germany. Ueiginm. tbe Njiher
landa. Hwnxerland, and Itulv, re.psotlvely,
bave beeu can led InloedVol. Under Cuese pro
visions Important tmprovemenis bave resulted
In reduced rales or luteiDational posiae, and
enlarged mall faellliles with European o tun
nies. The cost of Ibe United .Htates transat
lantic ocean mall service since January 1, 180-1,
baa been lurueiy lessened uuder the operation
i f these new oouvenl lops, a reduotiou of over
one-half having beeu e Heeled under the new
arrangements for ocean mail steamship servioe
whlcb went lutoeUeut ou lbai d.il. Tae alien,
lion of Congress la invited to the prao toil sug
gestion aud r.e tin mendsi ions made labia
rttvoii by the Pool ruu'er- General.
tio lnioriabl guest lou has ta-ourred during
Ihe last jear lu our accustomed oordlal aud
friendly luieoouriui wl'h Ca,ia Klca, Gutte
iiikla. Honduras. Han M.lvsrtor, Fraucc, Aus
tria, Uelgium. Hwltsertaud, l'ortnal. tbe Neth
erlands, iM-nmura. stweceii aud Norway, Kome,
Greece. Turkey. I'erla. E. y pi, Lloerla, atorou
oo. Irtpoil. luula, Muaca', ttlam, liorueo, and
Msdaauncar.
1 oidlul te slloBS have also been maintained
with Ibe Aigeullne snd tue Oriental repuullus.
The exi tewked wish of CsmgreaiB that our na
tional good olucts might be teoderod to lUose
repohlics, aud also to Brazil and Paragnar, for
bnnalug to au end the calamlons war wjloa
tins so long been raging In tne valley of Le
rials, ban la-en asslnuuusly complied wltn, aud
IklBt'ly acknowleoiieil b.- all ine belltgerjnts.
1 hat important nenoilailon, however, has tbus
isr beeu without result.
Cbarles A. Waubbura, late United 8 La teg
Minister lo raiaaay, having rrsigoed, and
belt g desltons to leturu lu lb Uaited MMles,
Ite Hear Admiral . oommandlng tbe rsoatn
Atlantic fquaurou was early dlreotel to scad
ktilp-of war to A'ucoior, tne ciptlal of Para
gnay, loieceive Mr. Wasubnrn aod his family
ana temove them liom a sltnstioa wnloi was
lepresenled to bo eudat geiexl by faetlou and
loielgu war. Tbe UraBiilau commander of the
Mliliu Invuolng lorces leiused permlslen to the
' Wasp" to pass ibiongh tbe bnaikadlug forcus
and that vessel reiun.ed to its aocustouied
anclioiage. HeinonsirancH having bee a made
kialnsl this re.ual, ll was promptly overruled
and Ibe Wasp" tbeiefoie resumeu her errand,
leielved Mr Wosuburu ana Ins firmly, sod
eonvejed Ihem to a sale aud convenient sea
poit. In Ihe meantime an excited controversy hud
risen between ine I'lenideut ot I'uraguay aud
the late Uu lieu mates .Minister. vvtMou Is Is un
OeikloiHl giew out of his proceed lous iu itlvlnn
i sylum in the Uuiled tstsies ieuan,,n louilegud
enemies ot tliul ltepub Ic. The question of tne
light to glveusyiuiii is oue always illitloillt.
Hid olleu productive ol great einbarras.tuent.
in biates well organized aud established,
foreign pow ers tetuse e Klier toconcede or exer
cise llial ilghl, except aa I o persons actually
belonsiug to ihe uiploiiiHllo service. On the
oll.tr bund, all such poaers Insist upon oxer
clsu.g ine i lalil oi asj lutn in Uiates where Ilia
luw ol nations is not fully acknowledged, re
spected, aud obeyed,
IPC 1'iesiueui l Paraguay Is understood to
nave opposed lo Mr. vvasouuru's proceedings
Ihe lijoilokB auu ver luiprooabld charge of
I ertoonl Oompllt-ltv lu losurt i otion anil tren.
son. Tue coi renpemdeuce, however, baa not yet
reached Ibe United folates.
Mr. Washburn, lu oouueotlon with this con
tioversy, repieientn that ine Uuiled Hlates citi
kens attached to ibe legal lou were arbitrarily
kelxed at nia slue, wueu leaviug ibe capital of
1 Bisgnsy, committed to pilson, and there sub
jected lo torture lor the purpose of procuring
contesslons ol Iheirown crtmloallty, aud lean,
luouy lo snppoit ibe Preslueul'a allegatlona
yaiust the Untied biates Mi mister; Mr. Ho
Mabob. ibe newly appoiuted M mister to Para
guay; having leacbea the La Plata, has been
ibkiiuoted U pmceed wltb.iul delay to Asun
cion, there to lu veatigau tue vh le sabjeit
The ltear-Admiral cumm in Hug the United
Btaiea Houth Atiautlo squadron has been
directed to atteuu tbe new Miuister with at
proper naval loice to sustain suth Just demands
as the occasion may require, and to vindicate
Ibe rights ol the Uniit-d aiates citizens relcrre I
to, auu of any others wuo m.ty be exposed to
dsbaer in ihe theatieof war. With these ex
cepiious, IrhDuly r uiions bave been main
taiued between the United Buties aud Brazil
and 1 aiagusy.
Our teiaiiuus during tha past year with
lionvla, Ecuador, i'eiu. and Chili, have beoomft
especially ineuuly aud o udial. Mpalu aud lue
lepuhllta ol I'ei u, llolivla, aud Ecuador, bave
expressed tbelr willingties to accept ine medl
aiionof the Untied IS uvea lor lermlna'.lug the
war upon the Houitt PaoiUo osask CUtU baa not
finally ceciaied upou tue question, lu the
meantime IbeconUiul ua practically exhausted
itself, since uo beliiaert ot or ho-1 lie movement
bas beeu made by either paity during lite lost
two years, aud lueie are no indications of a
pre st til purpose lo resume hoaillulea ou either
Bide.
Gieat Britain and Fianoe have cordially
seconded our piopoal.iuU of mediation, aud I do
hot loiego tue nope tnat il may soon oe acoepted
by all ine beilige.te.uia, uud lead loaseoure es
Ikbilshuient ul praca aud friendly relatlous
tteiweeu ibe HpsitikU-.iuierlcan republics of the
l'uclho kbd baiu a ieult wblch would be
hlienued with common neueflis io Ihebelllge
ieuisanu inuch advantuge iu all oommeroial
nations. 1 exjmmuuioate. lor ihecoustderaifoa
cl Congites.a coirrspondenoe wblou shows that
the Boiiviau lit tub. le bus esiaollshed the ex
tremely llbei ai principle of receivlug Into lta
citizenship any t-iinteu e f ibe United Htates, or
of any other oi the Ameilcau Republics, upon
tbe simple condition ol voiuuiaty registry.
Tbe ouirespuudeuce Uerewun submitted will
be lounu paiululiy replete with at-counta of the
ruin auu wreicuedueaa prouuoed by recent
earthquakes, ol uiip.raih led severity. In tne
Republic ol Peru, Ecuador, aud Hull via. Tue
uipiomailo ageuia ana naval officers of the
Unned Htates wuo were pieseut In those coun
tries at ibe timeot those disasters furnished all
the lelief In tueir power to tue sutferers, and
were promptly rewaided wUn grateful aud
touching ackbowieM'giueubj by Ihe Congress of
l'eru. An appeal to the cuaiuy of our fellow,
citizens baa been ana we red by wuob liberality.
In lb la cuubecuou I kuoioit au appeal wnioh
lifcB been made by lue Hwiaa Itepubllu, wuose
Governmeul and Instnaiiuus are kindred to
our own, in behalf ol its innabitants, wno are
sufltiiug extreme Oetiintion prodaoed by
ltcent oevastallug iuundallous.
Our relatlous witu M-xico uurlng the year
bave been marked by au lucreaalcg growth of
mutual conhdence. Xne Mexican Governmeat
bas nut jet acted upou the turee treaties cele
brated bere last summer lor establishing lha
rights of uatuiallzed citizens upon a liberal and
Just basis, lor regu aling consular powers, and
lor tbe adjustment ol mutual claims.
All commercial nations, aa well aa friends of
republican institutions, bave occasion lo regret
Ihe lie qnent local olsiuibauoea wbloh occur la
some of the oonsiltueui M-aies of Colombia,
bulbing bas occuired, bowever, to affeo the
harmony aud curuiai irieudsoip whiou bava
lor several yeais exiled between that youthful
and vigorous lepubilo aud onr own.
.Negotiations are pending with a view to tha
tuivey and euusii action ol a amp oaual across
the Isthmus of Dai leu, uuder the ausploea of
theUbl ed tiiates. I uope lo be sbl to submit
tbe results ot that negotiatiua to the Meuaia
curing Its present session.
Tbe veiy libeial. uealy whloh waa entered
into last jear by the United (stales aud Nica
ragua bas Lteu lalifltd by tbe latter republic
Costa Rica, with Ibe eaitiestueksof a sloeureiy
frienoly neighbor, soliciis a reciprocity of trade,
wblcb I commend to the oousldwraliou of Uoa
grets. The convention created by treaty betwesn
the United Btaiea and Veuexuela lu July, 180V3,
lor lue mulual adjust meut ot claims, has been
held, and lis decisions have been reoeived at
ibe Department of male, 1 be heretofore recog
nized Government ot the Uuiled Htates of
Venezuela h. beeu subverted. A Provisional
Government haying beeu Instituted under oir
cumstances wnioh prouil.e durability, It bag
been lormally recognized. -
i have teen reluctantly obliged to ask expla
nation and katlslsuiloii lor uutloual lujoiies
commitled by the Piesiueutol Hayil. Tue po
IltlCHi and social coudltiou of IheRepuolios of
Hayil ana fct. Doiulu is very uuaatisfaotory
and paitilul. Theabolitiouol slavery, wuiua ha
hi en cairled luioi licet lurt,uuout the islaud
ol"at. fouiingo and tne eutlie West Indies, ex
cept the Hpaulsu islands ot Cuba and PorW)
Rico, bas bteu lollowed uy a profound popular
couvictlun oi tbe rlguiiuiueks or repuuitcao la-
siiiaviuus, huu bu iuirua.ur.iro vo secure tuem.
The attempt, however, to establtsn repuoilus '
there ebcouutetu mauy obstacles, mosloi wnioh
may te supposed io lesult I rout long-ludutgd
bablls ol colonial supiueuess aud uepeu leuoe
upon Eiuopeuu luouaruuical powers. WullB
the United (Slates bave, iu ail oouaslona, pro
lessen a ueclued uu wtll.Dgneva tuatauy part of
Ibis oonlluent or lu.ai'Jueut lsiauns snail be
msde a ibeaire lor h new eslaUlisniuent of mo
baicnical pow. r, to i lime bas oeou douo by ns,
on iheotber hai d, to attacu lue oomtuuuliles
by wblcb we are fcuuouuded lo our own ooua
liy.or io itnd eveu a moral supp.rt tj the
el toils tbey are so lesolutely aud ooostautly '
making io secure repuuuoau instlluilons fur
the Ui selves.
It is, Indeed, a question of grave considera
tion wnelher our recent aud present example la
hot calculated to check tne growth aud ex pan
sun ol iieepiiDclples, aud make these oommu.
l.l.IbB rituliiikl. If IlilL HlMfl a ITI IU, I . . m . . ,
whlcb at will consigns to military domination
Htates tbal are luiegrul pans ol our Federal
Union; aud, while ieuuy to resist any attempts
by other nations to extend lo nils n em lap here
the mobarcbloal lusiltuiiousof Europe, assume
to establish over a large port lou of Is people a
rule more absolute barsh, and tyranuiual than
buy known to t Iviub d p wrs.
Tbe Biqnlsliiou ol Ala-ka was made with tba
View oi exteuolu national Jurlsdlo'.l m and
republican principles lu me Atnerloan he ml
kpt.eie. Believlug ibal a further step could be
taken lb ibe sme dlrecllou, I last year entered
into a lieaty witu the King ot Denmark for tha
iiuiKunsc oi iiiivuuni 01 ou t uoiuas and ML
ohu.cn tue best leruia theu attainable, aud
ItDiumuett on Vi4 Jtvjtdh .
i iUds.