iVtlfonl Bnquiici. BY DAVID OVER. ICONCLUTVEK.] In regard to the Tehuantepec route, which has been recently opened under the most fa vorable auspices, our treaty with Mexico of tho 30th December 1853, secures to the citizens of tho United States a right of transit over it for their persons and merchandise, any bo necessary, in order to obtain for itself that justice which it has ill vain attempt ed to secure by peaceful means from the gov ernments of Nicaragua and Costa llica. \V bile it has shown, and will continue to show, the most sincere regard for the rights and iionorof the-e republics, it cannot permit this regard to be met by an utter neglect, on their part, of what is due to the government aud citizens of the United States. Against New Granada we have loug-ftend ing causes of complaint, arising out of the un satisfied claims of our citizens upon that re public ; and to these have beeu more recently added the outrages committed upou our citi zens at Panama in April, 1856. A treaty for the adjustment of these difficulties, was con cluded by the Secretary of State and the Min ister of New Granada, in September, 1857, which contained just and acceptable provisions for that purpose. This treaty was transmitted to Bogota, and was ratified by the government of New Granada, but with certain amendments. It was not, however, returned to this city until after the close of the last session of tho Senate. It will be immediately transmitted to that body for their advico and consent; and should this be obtained, it will remove all our existing causes of complaint against New Granada on the subject of claims. Questions have arisen botween the two gov ernments, as to the right of New Granada to levy a tonnage duty upou the vessels ot the U. States in its ports of the Isthmus, uud to levy a passenger tax upon our citizens arriving in that country, whether with a design to remain there or to pass from oceau to ocean by the transit route ; and also a tax upon the mail of the United States transported over the Panama railroad. The goverumeut of New Granada has beeu informed, that the United States would consider the collection of either of those taxes, as an act in violation of the treaty be tween the two countries, and as 6ucli would bo resisted by the United States. At the same time, we are prepared to discuss these ques tions in a spirit of amity ond justice, and with a sincere desire to adjust them in a satisfactory inaouer. A negotiation for that purpose has already been couimenecd. No effort Las re cently been made '.o collect these taxes, nor is any anticipated under present circumstances. With tits empire of Brazil our relations are of the most friendly character. The produc tions of the two countries, and especially those of au agricultural nature, are such as to invito extensive mutual exebauges. A large quanti ty of Americau flour is consumed iu Brazil ; whilst more thau treble the amouut in value of Brazilian coffee is consumed in the U. States. Whilst this is the case, a heavy duty has beeu levied, until very recently, upon the importa tion of American flour into Brazil, iam grat ified, however, to be able to inform you that iu September last this has been reduced from sl,- 82 to about 49 cents per batrel, and the duties on other articles of our production have been diminished iu nearly the same proportion. I regret to state that the government of Brazil still continues to levy an export duty of about 11 per ecu:, on coffee, notwithstanding .this article* is admitted free from duty iu the U. States. This is a heavy charge upou the consumers of coffee in our country, as we rnir A Weekly Paper, Devoted to Literature, Politics, the Arts, Sciences, Agriculture, &c., See— Terms: One Dollar and Fifty Cents in Advance. chase half of the entire surplus crop of that article raised io Brazil. Our minister, under instructions, will reiterate his efforts to have this export duty removed ; and it is hoped that the enlightened government of the caiperor will adopt this wise, just, and equal policy.— In that event, there is good reason to believo that the commerce between the two countries will greatly increase, much to the advantage of both. The claims of our citizens against the gov ernment of Biazil are not, in the aggregate, of very large amount; but some of those rest upon plain principles of justice, and their settlement ought not to bo longer delayed. A renewed and earnest, aud I trust a successful effort, will be made by our minister to procure their final adjustment. On the 2d of June last, Congress passed a joint resolution authorizing the President "to adopt such measures aud use such force as, in his judgment, may be necessary ami advisable," "for the purpose of adjusting the differences between the U. States and the republic of Paraguay, in connexion with the attack on the U. States steamer Water Witch, and with other measures referred to" in his annual message. An 1 ou the Pith July following, they made an appropriation to defray the expenses and com pensation of a commissioner to that republic, should the President deem it proper to nuke such an appointment. iu compliance with these enactments, 1 have appointed a commissioner, who has proceeded to Paraguay, with full powers and instructions to settle these differences in an amicable and peaceful manner, if this be practicable. llis experience aud discretion justify tbe hope, tLat be may prove successful iu convincing tbo Paraguayan government, that it is due both to in nor nnd justice, that they should voluntarily and promptly make atonement fur tho wrongs which they hive committed against the United States, aud indemnify our iujutcd ci izens whom they have forcibly despoiled of their property. Should our commissioner prove unsuccessful, after a sincere aud earnest effort, to accomplish tbe object cf his mission, then no alternative will remain, but tbe employment of force to obtain "just satisfaction" from Paraguay, lit view of this contingency, the Secretary of the Navy, under my direction, has fitted out and despatched a naval force, to rendezvous near Buenos Ay res, which, it is believed, will prove sufficient for the occasion, it is my earnest that it may not be found ne cessary to f&sort to this last alternative. When Congress met in December last, the busiuess of the country had just L-een crushed, by one of those periodical rcvuisious, which are the inevitable consequence of out unsound aud extravagant system of hank credits aud inflated currency. Willi all the elements ot ualioual wealth iu abundance, our manufactu res were suspeuded, our useful public and pri vate enterprises were arrested, aud thousands of laborers were deprived of employment aud reduced to want. Universal distress pievaiied among the commercial, manufacturing, and uic cbauicul classes. Tbij revulsion was felt the more severely iu the (J. Stale*, because similar causes had pro duced the like deplorable affect tlirougbout the commercial uations of Kurope. All were ex periencing sad reverses at the saute momcut. Uur manufacturers everywhere buffered se verely, not because of the recent reduction iu the tariff of duties on imports, but because there was no druuaud at auy price for their productions. The people were obliged to re strict themselves, iu their purchases, to articles of prime necessity. In the general prostration of business, the iron manufacturers in different States probably suffered more than auy otber class, and much destitution was the inevitable consequence, among the great number of work men who hid been employed iu this useful brauch of our industry. There could be uo supply where there was uo demand. To pre scut au example, there could he no dcuuud for tail road iruu, after our maguiliceut system nt railroads, extending its benefits to every por tion of the Union, bad been brought to a dead pause. The same cousequtuces Lave resuiteu from similar causes to many otber branches of useful manufactures. It is self-cvideut that where there is uo ability to purchase manufac tured article--, these caunot be sold, aud con sequently must coase to be produced. No government, aud especially a government t>f such limited powers us that of the U. States, could have prevented the late revulsion. The whole commercial world seemed for years to have been rushing to this catastrophe. The same ruinous consequences would have follow ed in the U. States, whether the duties upon foreigu'imports had icmaitied as they were un der the tariff of 1846, or had been raised to a much higher standard. The tariff of 1857 had uo agency iu the result. The general causes existing throughout the world, could uot have bceu controlled by the legislatiou of auy par ticular couutry. The periodical revolutions which havo txist cd in our past history, must contiuue to return at intervals, so long an our present unbounded system of biuk credits shall prevail. They will, however, probably be less severe in the future ; because it is not to be expected, at least for many years to ceiue, that the com mercial nations of Europe, with whose interests cur own are so materially involved, will exposo themselves to similar calamities. But this subject was treated so much at large in my last annual message that 1 shall not pursue it fur ther. Still, I respectfully renew the recom mendation, iu favor of the pussage of a uniform bankrupt law,applicable to banking institutions. This is all the power over the subject which, i believe, the federal got eminent possesses. — Such a law would mitigato, though it might not prevent the evil. The iustinet of self-preser vation might produce a wholesome restraint upon their banking business, if they knew iu BEDFORD. PA., FRIDAY. DECEMBER 24, 1858. advance, that a suspension of specie payments would inevitably produce their civil death. But the effects of tho revulsion are now slowly but surely passing away. Tbe energy and enterprise of our own unbounded resource®, will, witbin the period of another year, restore a state of wholesome industry aud trsde.— Capital has again accumulated in our large citios. The rate of interest is there very low. Confidence is gradually reviving, and so soon as it is discovered that this capital can be pro fitably employed iu comntcroial and manufactu ring enterprises, and in the construction of railroads and other works of publio aud private improvement, prosperity will again smile throughout the land. It 13 vaiu, however, y> disguise the fact from ourselves, that a specu lative inflation of our curreucy, without a cor responding inflation in other countries whose manufactures couie into conipotion witli our owc must ever produce disastrous results to our do, uiestio manufactures. No tariff, short of abso lute prohibition, can prevent these evil con sequences. In connexion with this subject, it is proper to refer to our financial condition. The same causes which have produced pecuniary distress throughout the country, have so reduced the amount of imports from foreign countries, that the revenue has proved inadequate to meet the necessary expenses of the government. To supply the deficiency, Congress, by tbe act of the 23d of December, 1857, authorized the issue of 5520,000,000 of treasury notes; and this proving inadequate, they authorized, by the act of June 14th, 1858, a loan of $20,- 000,000 "to be applied to the p.iyuieut of ap propriations made by law " No statesman would advise, that wo should go on increasing the national debt to meet tbe ordinary expenses of the government. This would bo a most ruinous policy. In case of war, our credit must be our chief resource, at least for the first year,and this would be great ly- impaired by having contracted a large debt in time of peace. It is our true policy, to iu. crcaie our revenue so ns to equal our expendi tures. It would be ruinous to continu\to bor row. Besides, it miy be proper to obseive, that the incidental protection, thus afforded by a revenue tariff, would at the present moment, to some cxteut, increase the confidence of the manufacturing interests, and give a fresh im pulse to our reviving business. To this, sure ly, no person will object. In regard to the mode of assessing and col lecting duties under a strtcYly revenue taritt* 1 have long entertained and ofteu expressed the opinion, that sound policy requires this should be done by specific duties, iu cases to which these can be properly applied. They are w ell adapted to commodities which arc usually sold by weight or measure, and wLicb, from their uature, are of equal or of nearly equal vuluc. Such, for example, are the articles of iron of different classes, raw sugar, and foreign wines and spirits. In my deliberate judgmeut, specific duties are the best, if not the only means of securing the revenue against false and fraudulent invoices, and such has been the practice adopted for this purpose by other commercial nations. Besides, specific duties would affurd to the Auurican manufacturer the incidental advantages to which he is fairly entitled under a revenue tariff. The prcseut system is a sliding scale to his disadvantage. Under it, when piices are high aud busiuess prosperous, the duties rise in amount when he least requires '.heir aid. On the contrary, when prices fall, and he is strug gling against adver.-ity, the duties are diminish ed in the same proportion, greatly to his inju ry- Neither would there he danger that a higher rate of duty thau that intended by Congress, could be levied in the form of specific duties. It weuld be easy to ascertain the average val ue of auy imported article for a series of years; and instead'rf subjecting it to an ad valorem duty at a certain rate per centum, to substitute in its place an equivalent specific duty. Hy such an arrangement the consumer would not be injured, it is true, be might have to pay a little more daty on a given article in one year; but if HO, he would pay a little less iu auother, and in a series of years these would counterbalau -e each other, and amount to the same thing, so far ns his interest is concerned. This iuconvciiieoce would bo irifliug, when con trasted with the additional security thus afford ed against frauds upon the revenue, in which every consumer is directly interested. 1 have thrown out these suggestions as the fruit of my own ol scrvatiou, to which Congress, iu their better judgment, will give such weight as they may justly deserve. •fcjThe report of the Secretary of the Treasury will explain in detail the operations of that de partment of the government. The receipts into the treasury from all sources during the fiscal year eudiug 30th Jane, 1858, including the treasury notes authorized by the act of December 23d, 1857, were seventy million two huudred aud seveuiy-tliree tiiousaud eight hun dred rind sixty-nine dollars uud tifty-uiuo cents, (§70,273,809 59,) which amount, with the balance of seventeen million seven hnudred and ten thousand one huudred and four'.eou dollars aud tweuty-soven cents, (17,710,114- 27) remaiuing iu the treasury at the com mencement of the year, made an aggregate for the service of the year of eighty-seven million uiue hundred and eighty-three thousand nine hundred and eighty-three dollars aud eighty six cents, (§87,983,983 86,) The public expenditures during the fisca 1 year ending June 30, 1858, amounted to eighty-oue million five hundred and eighty live thousand six hundred and sixty-seven dol lars aud seventy-six cents, (§81,585,G07 70,) of which nine million six hundred and eighty four thousand five hundred arid thirty-seven dollars and uißety-riiue cents, (§9,084,537 99) were applied to the payment of the public debt, and the redemption of treasury notes with the 1 interest thereon, leaving in the treasury on Ju a Jy 1, 1858, being the commencement of the 'present fhoal year, six million three hundred and ninety-eight thousand three hundred and sixteen dollars and ten cents, ($6,398,316 10.) ' The receipts into the treasury, during the first quarter of tho present fiscal year, com meaning the Ist July, 1858, including one hulf of the loan of twenty millions of dollars, with the premium upon upon it, authorised by the act of 14th June, 1858, were twenty-five million two huudred and thirty thousand eight hundred and seventy-nine dollars and forty-six | cents, ($25,230,879 46) aod the estimated re ! ceipts for the remaining three quarters to the 30th June, 1859, from ordinary sources, are thirty-iight million five hundred thousand dol. lars, (39,500,000,) making, with the balance before stated, an aggregate of seventy-million one hundred and twenty-nine thousand one hundred amd ninety-five dollars and fifty-six cents, (70,129,195 56.) /"Tue expenditures, during the first quarte'reo?*' the present fiscal year, were twenty-one mil lion seven hundred and eight thousand one hundred and ninety-eight dollars and fifty one cents, ($21,708,198 51,) of which one million and teu thousand one hundred aud forty-two dollars and thirty-seven cents ($1,010,142 27) were applied to the payment of the public debt and the redemption of treasury notes and the interest thereon. The estimated expenditures, duriug the remaining three quarters to 30th June, 1859, are fifty-two million three hundred and fifty seven thousand six hundred and ninety-eight dollars and forty eight cents, (52,- 357,698 48,) making an aggregate of seventy four million sixty-five thousand eight hundred and ninety six dollars, and ninety-nine cents, ($74,065,896 99,) being an exeess of expendi ture, beyond the estimated receipts iuto the treasury from ordinary sources, during the fis cal year to the 30th June, 1859 of three mil lion nine hundred and thirty six thousand seven . hundred undone dollars and forty three centg, < |s3, 937,701 means ate placed by law within the command of the Se cretary of the Treasury, by the reissne of treasury notes redeemed, aud by negotiating ■. the balance of tho loan authorized by the act of 14th June, 1858, to the extent of eleven millions of dollars, which, if realized during tho present fiseal year, will leave a Ssnboct; ia the treasury, on the first day of July, 1859, of seven million sixty three thousand two hun dred and ninety eight .dollars aod fifty seven - " f The estimated receipts during the next fiscal year ending 30th June, 1860, are sixty two millions ofqpllsrs, ($62,000,000,) which, with the above estimated balance of seven million sixty three thousand two hundred anil ninety eight dollars seven cents, (7,063,298- 57 )nnke an aggregate for the service of the nxt fiscal year, of\sixty riiue/itiillion sixty three thousand two hundred jnd ninety eight, dollars aud fifty seven\cente, ($69,063,298- 57.) The estimated expenditures during the next fiscal year June, 1860, are j seveuty three millioif one hundred and thirty nine thousand ouej.uudred forty seven dollars and forty six cents, (73*139, 147 46,) which leave a xfeficit of estimated means, com pared with the estimated expenditures for that year, commencing on the Ist of Juty, 1859, of four mjltion aud seventy five thousand eight bunded aud forty tight dollars aud eighty nine , cents, $(4,075,848 89. *■"'"ls addition to this sum, the Postmaster Oeu eral will require from the treasury, for the service of the Post Office Department, three million eight huudred and thirty eight thou sand seven hundred and twenty eight dollars ($3,838,728,) as explained in the report of the Secretary of the Treasury, which will increase the estimated deficit on the 30th Juue, 1860, to seven million nine hundred and fourteen thousand five hundred and seventy six dollars and eighty nine cents, ($7,914,576 89 ) To provide for the payment of this estimated de ficiency, which will be increased by sueh ap propriations as may be made by Congress, esti mated for in tho report of the Treasury De partment, as well to provide for the gradual redemption, from year to year, of the outstand ing treasury notes, the Secretary of the '1 reas ury recommends sueh a revision of the present tariff as will raise the required amount. After what I have already said, 1 need scarcely add , that I concur iu the opinion expressed in his report—that the public debt should Dot be in creased bv an additional loau, and would there ' fore strongly urge upon Congress the duty of 1 making, at their present session, the necessary provision for meeting these liabilities. The public debt on tho Ist July, 1858, the couimenceiucut of the present fiscal year, was $25,155,977 66. Duriog the first quarter of tho present year, ' the sum of $lO, 000 000 has been negotiated of the loan authorized by the act of 14th June 1858—makiug the present outstanding public debt, exclusive of treasury notes, $35,155,977- 66. There was on tho Ist July, 185b, of treasury notes issued by authority of the act of December '23, 1857, unredeemed, the sum of $19,754,800— making the amount of actu al indebtedness, at that date, $54,910,171 66. ; To this will bo added $10,000,000 during the preaeut fiscal year—this being the reuraiuiug I half of the loan of $20,000,000 uot yet nego tiated. The rapiJ increase of tlie public debt, and ; the necessity which exists for a modification of the tariff, to meet even the ordinary ex penses of the government, ought to admouish us all, iu our respective spheres of duty, to the | practice of rigid economy. The objcc's of ex penditure should be Hunted iD number, as far as'tlus may be practicable, aud the appropria tions necessary to carry them into effect, ought to be disbursed under the strictest accounta bility. Enlightened economy does not consist i in the refusal to appropriate money for consti- , ' tutional purposes, essential to the defeuee, pre jgress and prosperity of the republic, but in tak ing caro that none of this money shall be wast ed by mismanagement, in its application to the objects designated by law. Comparisons between the annual expenditure at the present time, and what it was ten or twenty years ago, are altogether fallacious.— The rapid increase of our country in extent and population, renders a corresponding in crease of expenditure, to some extent, unavoid able. This is constantly creating new objects of expenditure, and augmenting the afflouut required for the old. The true questions, then are, have these objects been unnecessarily mul tiplied? or, has tbo amount expended upon any or aJI of tbem, been larger than comports with due economy ? ID accordance with these principles, the heads of the different executive departments of the government have been in structed to reduce their estimates for the next fiscal year to the lowest standard coosistent with the efficiency of the service, and this du- they have performed in a spirit of just economy. The estimates ef the Treasury, War, Navy and Interior Departments, have each been in some degree reduced-; and unless a sudden and unforeseen emergency should arise, it is not an ticipated that a deficiency will exist in either within the present or the next fiscal year. The Post-office Department is placed to a peculiar position, different from tho other departments, and to this 1 shall hereafter refer. I iuvito Congress to institute a rigid scrutiny to ascertain whether the expanses in all the de partments cannot be still further reduced; and 1 promise them all the aid in my power in pur suing the investigation. 1 transmit herewith the'reports made to nte by the Secretaries of War, of the Navy, of the Intel ior, aud of tbo Postmaster General. They each contain valuable information and import ant recommendations, to which I invite the at tention of Congress. In my last annual message, 1 took occasion to recommend the immediate construction of ten small stoamers, of light draught, for the purpose of increasing tho efficiency of t{ie navy, Con gress responded to the recommendation, by au thorizing the construction of eight of tbem.— The progress which has been made in executing this authority, is stated iu the report of tbc Secretary of the Navy. I ooucur with him in (be opinion, that a greater uumber of this class of vessels is nece.-sary, for the purpose of pro tecting in a more efficient manner the perso'us and property of Amort—u citizens c* :be high -seas, and in foreign countries,as well as in guard- ! ing more effectually our owu coasts. I accord ingly recommend the passage of an act for this purpose. Tbo suggestions contained in tbc report of the Secretary of tbc Interior, especially those in regard to tbc disposition of the public do main, tbe peusion and bounty land system, the policy towards tbe Indians, and the amendment of our patent laws, are worthy of tbe serious consideration of UoDgress. The Post Office Department occupies a posi tion very differeut from that of tbe other de partments. For uiauy years it was the policy of the government to render this a self-sustain ing department; and if this cannot now be ac complish :d, in tbe present condition of tbe coun try, we ought to make as near an approach to it as may be practicable. The Postmaster General is placed in a most embarrassiug position by tbe existing laws. He is obliged to carry these into effect. He has no other alternative. He finds, however, that this cannot be done without heavy demands on the truasury over and above what be recoives for postage; and these have been progressively increasing from year to year until they amount ed for the last fiscal year eudiug on tbe 30?h Juue, 1853, to more than four millions aud a half of dollars; whilst it is estimated that for tbe present fiscal year they will amount to §6,- 290,000. Tbe sums are exclusive of the an nual appropriation of §700,000 for "compen sation for tbe mail service performed tor the two houses of Cougress and the other depart ments aud officers of the governmeut in the transportation of free matter." The cause of these large deficits is mainly attributable to the rucieased expense of trans porting the mails. Iu 1852 tbe sum paid for this service was but a fraction above the four millions and a quarter. Since that year it has annually increased until iu 1858 it has reached more than eight millions aud a quarter, aud for the service of 1859, it is estimated that it will amount to more than ten millions of dollars. The receipts of tbo Post Office Department can be made to approach or to equal its expen diture, only by means of the legislation of Con gress. In applying any remedy, care should he takeu that the people shall not be deprived of the advantages, which they are fairly enti tled to eujoy from the Post Office Depariincut. The priucipul remedies recommended to the con sideration of Congress by the Postmaster-Gen eral, are to restore the former rate of postage upon single letters to five cents; to substitute for the franking privilege the delivery to those now entitled to enjoy it, of post office stamps for their correspondence, and to direct the de partment, in making contracts for the transpor tation of the mail, to centime itself to the pay ment of the sum necessary for this single pur pose, without rcquitiug it to he transported iu post coaches or carriages of any particular de scription. Under the present system, the ex pense to the government is greatly increased, by requiring that the mail shall be curried in such vehicles as w