r ifff IT . .,' v. b A7ssa5a s.5Kasw jh i-nj. is. a . 4 it Fl. L. JOHSSTOS, Editor. ii K IS A FIIEEUAS WHOM IHS TRUTH MAKES Fa EE, AID ALL ARK SLAVICS B&sIDB, II. A. U'l'IIi;, PutlUbcr VOLUME 2. EBNESBURG, PA., THURSDAY, DECEMBER 17, 1868. NUMBER 46. it :WW1I' i. h fa .1 '1 fj 1 j i V J President's Message. Fellow Citizens cf the Stride and House of Representatives ; Upon the re-a.ssembling of Congress, it a3iu becomes my duty to call your attention to the state of the Union, and disorganized condition under tbe various laws which have been passed upon the subject of reconstruc tion It may be safely assumed as an ax ijm in the government of the States, that the greatest wrongs inflicted upon the people are caused by unjust and arbitrary legisla tion, or by tha unrelenting decrees of des potic rulers, anl that injurious and oppres sive measures are the greatest evils that can be inflicted upon a nation. The legislator or the ruler who has the wisdom and mag nanimity to retrace his steps when convincd of error, will sooner or later be rewarded with the respect and gratitude of an intelli gent end patriotic people. Our own history, tdlhough embracing a period of less than a century, affords abundant proof that most, if not all our domestic troubles are directly traceable to violations of the organic law, and excessive legislation. 'X1LK Br.oOSSTKUCTION LAWS SHOCLP "BS KS -PEALED. The most striking illustrations of the fact are furn shed by the enactments of the past three years upon the question of re construct on. After a fair trial they have sub.tautijjly failed and proved pernicious in tht-ir re.-u'ts, and there seems to be no good recsor; wLy they should longer remain upon the fctatutu boi ks. States to which tne O nstitution guarantees a republican f rm of Government, have been reduced to military dependencies, in each of which the people have been made subjects to the arbi trary will of the commanding general. Al though the Constitution requires that each fctat shall be represented in Congress, Vir ginia, M's Jsfoj'pi and Texas are yet exclud ed from the Houses, and contrary to the ex press provis:ons of that instrument, were denied articipation iu the recent election fur a President and Vic President of the United States. Th attempt to place the whole population under the domination of persona of color in the South, has impaired if not destroyed the kindly relations that Lad previously existed between them, and UiUtual distrust has engendered a feeling of animosity whioh, leading in some instances to collision and bloodshed, has prevented that co-operation between the two races so essential to the success of industrial enter prise in the Southern States. Nor Lave the inhabitants of those States alone buffered from the disturbed condition of adairs grow ing out of these Congressional enactments. The entire Union Lad been agitated by grave apprehensions of trouble, which might iagaiu involve the peace of the nation. Its interests have been injuriously afL-cted by the deracgi-aitut of business and labor, the consequent want of prosperity throughout that portk-n of tbe country. The Federal Constitution, the Magna CLarta of Americau rights, under whcjse viae aud salutary provisions we have suc cessfully conducted all our domestic and for eign affairs ; 6ustiucd ourselves in peaca B.'jd in war, and became a great nation among the powers of the earth, must as sure jly now be adequate to the settlement of all questions growing out of the civil war waged alone for its vindicated. This great act is made most manifest by the con dition of the country. When Congress as sembled in the n,nth of Doceinber, 18'J5, civil strife bad erased. Tb spirit of rebel lion LaJ spent its entire force in the South ern States Tho people had warmed into national life, and throughout the whole country a healthy reaction in public senti ment had taken place by the application of the simple, yet effective provisions of the Conrtitutiou. The Executive Department, with the voluntary aid of the States, had 4 brought the work of restoration as near completion as was within the scope of its authority, and the nation was encouraged by tbe prospect of an early and satisfactory adjustment of all its difficulties, Congress, howevej, intervened, and refusing to perfect the work so nearly consummated, declined to admit members from the States, adopted a course of measures, fustrating all that had been successfully accomplished, and. after three years of agitation and strife has left the country farther from the attainment of union and fraternal feeling than at the in ception of the Congressional plan of recon struction. It needs no argument to show that the legislation which has produced such cousequances should be abrogated, or elte made to conform to the genuine princi ples of liepublican Government. Under the influence of party passions and sectional prejudice other acts have beeu passed not warranted by the Constitution. THS TZSURB-Of-OtUCE BILL. Congress has already been made fami'.iar with my views respecting the Unure-of-office till. Experience has proven that its repeal is demanded by the best interests of the country, and that while it remains in force the President cannot enjoin that rigid ac countability of public officers so essentia! to an honeat and efficient execution of the lawB, its revocation would enable the Execu . tive Department to exercise the power of appointment and removal in accordance- - with the original design of the Federal Con- . stitution. THE PRESIDENT AS COmMANDEB IW-CHIKK The act of March 2d, 1867, making ap t propriations for the support of the army for the year ending June 30th, 1868, and for other purposes, contains provisions which interfere with the President's constitutional functions as Commander-in-chief of the ar my, and deny to States of the Union the riht to protect themselves with their own militia. Thesn provisions should be at once annulled, for vrhile the first might, in times of great emergency, Beriously embarrass the Executive in efforts to employ and direct common strength cf the nation for its : prouetUon and preservatioa, the other is contrary to tbe express declaration of tbe Constitution, t1t a weu regulated militia oemg necessary to the' security of a free .tau , the right or th people to keep and tsar arms shall not be infringed. It is be lieved that the repeal of alUucb laws would be accepted by the American people as at ;est a partial return to the fondartental . principles of the government, and an indi ' ton that hreafter tbe CoBstitntwa is t0 be made the nation's safe and unerring guide ; i they can be productive of no permanent j benefit to the country, and should not be permitted to stand as so many monuments of deficient wisdom which has characterized our reoent legislation. THE PCBHO EXPETTDITCRE3. The condition of our finances demands the early and earnest consideration of Gwgress. Compared with the growth of our population, public expenditures have reached an amount unprecedented in our history. The popula tion of the United States in 1790 was nearly four millions of people ; increasing each de cade about thirty-three per cent., it leached in I860 thirty-one millions, an increase of seven hundred percent. on the population in 1790. In 1869. it is estimated it will reach thirty-eight millions, or an increase of eight hundred and sixty-eight per cent, in seventy nine years. The annual expenditures of the Federal Government in 1791 were four mil lions two hundred thousand dollars ; in 1820 eighteen millions two hundred thousand dollais ; in 1850, forty-one millions ; in 1860. sixty-three millions. In 1SG4, nearly thir teen hundred millions, and in 1869, it is es timated by the Secretary of the Treasury ia his last annual report that they will be three hundred and sevtntj-two millions. By comparing the public disbursement of 1SC9 as estimated with those of 1 79 1, it will be seen that the increase since the beginning of our government has been eight thousand six hundred and eighteen per cent., while the increase of the population for the same period was only eight hundred and sixty eight per cent. Again, the expense of the Government in 1860, the year of peace im mediately preceding the war, were only sixty five millions, while in 1S69, tho year of peace three years after the war, it is esti mated tbey will be three hundred and sev enty millions, an increase of four Lundred and eighty-niue per cent, while the increase of population was ouly twenty-one per ceu . for the same period. These statistics fur ther show, that in 1791 the annual national expenses compared with the population were but little more than one dollar per capita, and in 1860, two dollars per capita, while iu 1869 they will reach the extrava gant sum of uine dollars and seveuty-eight oents per capita. It will be observed that all of these statements referred to exhibit the disbursements of peace periods. It may, therefore, be of internet to compare the ex penditures of the three war periods, the war with Great Britain, the Mexican war and the war of the rebellion. In 1814 the an nual expenses incident to the war of 1812 reach the highest amount, abjut $31,000,000 while our population slightly exceeded 8, 000.0GO, 1 showing an expenditure of only three dollars and eighty cents per capita. In 1847 the expenditures growing out of the war with Mexico, reached fifty-five millions, aud the population about twenty-oue mil lions, giving only two dollars and fcixty cents per capita for tho war expenses of that year. In 1866 the expenditure called for by the rebellion reached tho vast amount of twelve hundred and ninety millions, which, compared with a population of thirty-four millious, gives thirty-eight dollars and twenty-eight cents per cents per capita. From the 4th day of March, 1789, to the 30th of June, 18S1, the entire expenditures of tL Government were seventeen hundred million cf dollars. During that peri J we were engaged In wars with Great Britain and Mexica, and were engaged in hostilities with powerful Indian tribta. Louisiana was purchastd from France at n cost of fifteen millions of dollars; Florida was ceded to us by Spain for five millions ; CaliforLia was acquired from Mexico for fifteen millions, and the Territory of New Mexico wa.s ob tained from Texas for the sum of ten mil lions. Early in 1861 the war of the rebel lion commenced, and from the first of July of that year to the thirtieth of June, 1865. the public expenditures reached the enor- I mous aggregate of thirty-three hundred mil- j lions, xhree years of peace have intervened, and during that time the diebur&ementi of the Government Lave successively been five hundred and twenty millions, three hundred and ninety millions. Adding to these amounts three hundred and eeventy-two millions estimated as necessary for the fiscal year ending the 30th of June, 1869, we ob tain a total expenditure of eixleeu hundred millions of dollors during the war, or nearly as much as was expended the seventy-two years that preceded the rebellion, and era braced the extraordinary expenditures already named, these startling facts clearly illustrate tbe necessity of retrenchment in all branches of the public service. Abuses which were tolerated during the war for the preservation of the nation will not be endured by the peo ple now, that profound peaoe prevails. INTERNAL REVENUE AND UST01TS BEOEIPT8. The reeeipt8 from internal revenues aud customs have, during the past three years, gradually diminished, and the continuance of useless and extravagant expenditures will involve us in national bankruptcy, or elso make inevitable an increase of taxes already too onerous and in many respects obnoxious on account of their inquisitorial character. One huadred millions annually are expend ed for the military force, a large portion of which ia employed in the execution of laws both unnecessary and unconstitutional. One hnndied and fifty millions are required each year to pay the interest on the public debt. An army of tax gatherers impoverishes the nation, and public agents, placexl by Con gress beyond tbe control of the Executive, divert from their legitimate purposes large sums of money, which they collect fiom the people in the name of the government. Ju diciouu legislation and prudent economy can alone remedy these defects, -and avert evils which, if suffered to exist, cannot fail to di minish confidence in the public councils and weaken the attachment and respect of the people toward their political institutions. Without proper care the small balance which il is estimated will remain in the Treasury at the close of the present fiscal year will not be realized, and additional millions be added to a debt which is now enumerated by billions. It is shown by the able and comprehensive report of the Secretary of the Treasury that the receipts for the fiscal year ending June 30. 1868, were 4405.638.O8S and that the expenditures for the same pe riod were $377,340,284. leaving in the Trea sury a surplus of -$282,977 98. It is esti mated . that the receipts during the present fiscal jear ending Jane 30, 1999, will be $341,392,868, avid the expenditures $336, 152,470, showing a small balance of $0,240, 398 in favor of the Government. For the fiscal year ending June 30. 1870, it is esti mated that the receipts will amount to $327, 000,000, and the expenditures to $303,000, 000, leaving an estimated surplus of $24, 000,000, THS NATIONAL INDEBTEDNESS. It becomes proper in this connection to make a brief refereuce to our public indebt edness, which has accumulated with such alarming rapidity and assumed such colossal proportions. In 1789, when the Govarn meiit commenced operations under tho Federal Constitution, it was burdened with an indebtedness of seventy-five millions of dollars, created during the war of the Revo lution. This amount bad been reduced to forty-five millions of dollars, when, in 1812, war was declared against Great Britain. The three years' struggle that followed largely increased the national obligations, and in 1816 they hal attained the sum of one hundred and twenty-seven millions. Wise and economical legislation, however enabled the Government to pay the entire amount within a period of twenty j-cars, and the extinguishment of the national debt filled the land with rejoicing, and was one of the great events of President Jackson's administration. After its redetnptiun, a large fund remained in the Treaaurjs which was deposited for safe keeping with the beveral States on condition that it should bo returned when required by the pubiic wants. In 1849, the year after the termina tion of an expensive war with Mexico, we found ourselves involved in a debt of sixty f ur millions, and this was the amount owe. by the govrrninent in I860, just prior to the outbreak of the rebellion. In the ?pring of 1S61 our civil war commenced ; each year of i's continuance made an enormous addi tion to the debt, and when, in the spring of 1S65, the nation successfully emerged from the conflict, the obligations cf the govern ment had reached the immense sum of $2, 873.992,909. The Secretary of the Treas ury shows that on the 1st d.iy of November. 1G7, this amount had been reduced to $2, 491, 504. 450, but at the same time his Lis report exhibits r.n increase d-.irio the past year of $35. 025, 102, for the debt on the firfct day of November last is stated to have been $2,527,129,552. It is estimated by the Secretary that the returns fur the past month will add to our liabilities the further eura of eleven million?, making a total increase during thirteen month of forty six an i a half millions. BEDUCTION C TliE FCSLIC DEBT. The President then argues in favor of a reductiou of the public debt, in which he says we should without further delay make provision fur the payment of our obligations at as early a day as may be practicable. The fruit of the labors of the people, he goes on to say, should be enjoyed by our citizens, rather than be used to build up and sustaiu moneyed monopolies in our own and other lauds. Odr foreign debt is already compu ted by the Secretary cf the Treasury at $850,000,000. Citizens of foreign countries receive interest upon a largi poition of our securities, and American tax-paj ers are made to contribute Urge ums fW their support. The idea that such a debt is to become per manent should be at ail time discarded, as taxation is too heavy to be borne. The President also diecustes the rate of interest uow paid by the Government, and comes to the conclusion that we are paying an extravagaat per centage for the use of the money borrowed. He says: Our national credit should be sacredly ob.-erved, but in making provision for our creditors we should not furget what is due to the tnas-es of the people. It may be assumed that the holdt is of our securities have already received upon their bonds a larger amount than their ori ginal investment, measured by a gold stand ard. Upon this statement of facts it would become jut and equitable that the six per cent, interest now paid by the Government should be applied to the reduction of the principal in semi-annual instalments, which in sixteen years aud eighteen months would liquidate the entire national debt. Six per cent, in gold would at present rates be equal to nine per cent, in currency, aud equivalent to the payment of the debt one and a half times in a fraction less than seventeen years. This, iu connection with all the other ad vantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this tbey should be satisfied. . ". ' OUB OORUEKCT. The President, after adverting to the in flation of the currency, says that it is the obvious duty of the Government, as early as may he consistent with tho principles of eound political economy, to take such mea sures as will enable the holder of its notes and thop of the national banks to oonvert them without loss into specie or its equiva lent. A reduction of our paper circulating medium may not necessarily follow. This, however, would depend upon the law of de mand and supply ; though it should be borne in mind that by making legal-tender and bank notes convertible ioto coin or its equivalent, their present specie value in the hands of their holders would be enhanced oue hundred per cent. Legislation for the accomplishment of a result 60 desirable is de manded by the highest public considerations, lie further says that equal and exact justice requires that all creditors of tho Government should be paid in a currency possessing uni form value. This can only be accomplished by the restoration of currency to the standard established by the Constitution, and by this means we would remove a discrimination which may, if it has not already done so. create a prejudice that may become deep rooted and widespread, and imperil the na tional credit. . THE TUBLIC DOMAIN. The Secretary of the Interior, in Lis re port, gives valuable information in referenco to the interests confined to the supervision of his department, and reviews the opera tions of the Land Office. Pension Office, Pat ent Office and Indian Bureau. During the fiscal year ending June 30th. 1868. six. mil lions six hundred and fifty-five thousand seven hundred acres of public land were dis posed of. The entire cash receipts of the General Land Office for tbe same period were $1,632,745, being greater by $284,883 than the amount realized from the 6ame sources dorleg the previous yar. Tbe entries un der the Homestead law cover two million three hundred and twenty eight thousand nine hundred and twenty-three acres, nearly one-fourth of which was taken under the act of June 21st, 1S67, which applies only to the States of Alabama, Mississippi, Louisi ana. Arkansas and Florida. THE PENSION BUREAU. On the 30th of June. 1868, one hundred and sixty-nine thou.ann six hundred and fiity-three names were borne on tha pension rolls, and during the year ending on that day, the total amount paid for pensions, in- $24,010,982, being $5,391,025 greater than that expended for like purpoas during the preceding year. Exception is taken to the act of 23d July last, which reduces the interest on the fund loaned to the Government by tbe Secretary as trustee, to thre per cent., instead of six per cent., which was originally stipulated when the investment was made. An amend ment of the Penhion laws is suggested to remedy omissions aud defects in existing en actments. The expenditures of the depart ment during the last fiscal year were $201, 203,94, and the estimates for the coming year amount to $20,993,314. THE PAjTBKT OFFICB. During the year ending the 30th of Sep tember last, the expenses of the Patent Ofiioe exceeded the receipts by . ;hundred and seventy one dollars, and including re-issues and designs, fourteen thousand one hundred and fifty-three patents were issued- INDIAN AFFAIUS. Treaties with various Indian tribos have been concluded, aad will bo submitted to the Senate for its constitutional action. I cor diailay sanction the stipulations which pro vido for reserving lands f jr the various tribes, where they may be encouraged to abandon their nomadic habits, and engage in agricul tural and industrial pursuits. This policy, inaugurated many years eince, has met with signal success whenever it has been pursued in good faith and with becoming liberality by the United States. The necessity for ex tending it as far as practicable in our rela tious with the aboriginal population is greater now than at any preceding period. Whilst we furnish subsistence aud instructions to the ludiats and -jmrantee the undisturbed eojoymeut of their treaty rights, we should habitually insist upon the faithful observance of their agreement to remain within their re spective reervRtionsr This is the only mode b' which these collisions with other tribes and with the whites can be avoided and the safety of our frontier settlements secured. the Pacific railways. The companies constructing the railway from Omaha to Sacramento have been most energetically engaged in prosecuting the work, and it is believed that the line will be completed ocfne the expiration of the next fi.scal year. The six per cent, bonds issued to these companies amounted ou the fith in stant tj $44,337,000, and additional work had been performed to the extent of $3,200, 000. The Secretary of the Interior in Au gust last, invited my altentir-n to the report of a Director of the Union Pacific Railroad Company, who had hcen specially instructed to examine the location, construction and equipment of their road, and submitted for the opinion of the Attorney General certain qucti ms in regard to tho authority of the Executive, which arose upon this report, aud those which had from time to time been presented by the Commissioners appointedf appointed to enmine thi an 1 other lines, ami Lave recently submitted a statement o their investigation?, of which the report of the Secretary of the Interior furnishes spec ial information. THE WAP. DEPAliT-MFNT. - The report i f the Secretary of War con tains information of interest respecting the several Buaeans of the War Department, and the operations of the army. The t-trength of our military force on the 30th of September last was 68,600 men, and it is computed that this number will be decreased to 43,000. It is the opinion of the Secretary of War, that within the next year a consid erable diminution of tho infantry force may be made without detriment to the interest of the country, and in view of the great ex pense attending the military establishment and the absolute necessity of retrenchmeat, wherever it cau be applied, it is hoped that Congress will sanction the reduction which his report recommends. While in 1860. sixteen thousand (hree hundred men cost the nation $16,472,000, the sum of $05,632,000 as necessary for the support of the army du ring the fiscal j-ear, ending June 30, 1870. The estimates of war debt, for the last two fiscal yaars. were for 18(57, $33, 814,461, and and for 1868. $25,205,669. Tha actual expenditures during the same periods were respectively, 95.224,415 and $123,246,648. The estimate submitted in December last, for the fiscal year ending June 30, 1869, was $77,124,707. The expenditures for the first quarter, euding the 30th of September last, were $27,219,117. and the Secretary of the Treasury gives $06,000,000 as the amount which will probably be required during the remaining three-quarters, if there should be no reduction of the army, making its aggre gate cost for tho year considerably in excess of ninety-three millions. The difference be tween the estimates and expenditures for the three fiscal years which have been named, is thus shown to be $175,545,343 for this sin gle branch of public service. THE NAVY. The report of the Secretary of the Navy exhibits the operations of that dapartment and of the Navy diuiug tha year. A consid erable reduction of the force has been effected. There are forty-two vessels carrying four hundred and eleven guns in the six squad rons which are established in different parts of the world. Three of these vessels are re turning to the United States and four are Used as storeships. leaving the actual cruis ing force thirty-five vessels, carrying three hundred and fifty six guns. The tolal;num ber of vessels in the Navy is two hundred and six, mounting seventeen hundred and forty-three guns. Eighty-one vessels of ev ery description are in use, armed with six Lundred and ninety-six guns. The number of enlisted men in the service, includicg ap prentices, has been reduced to eight thou sand and five hundred. An increase of navy yard facilities is recommended which will. i ia the event of war, be promotive of economy aad secutity. A more thorough aad sys tematic survey of the North Pacific Ocean is advised, in view of our recent acquisitions, our expanding commerce, and the increasing intercourse between the Pacific States and Asia. The Naval Pension Fund, which consists of a moiety of the avails of prizes captured during the war, amounts to $14, 000,000. THE P0STOFFICE DEPARTMENT. The Postmaster General's report furnishes a foil and clear exhibit of the operations and condition of the postal service The ordina ry postal revenue for the fiscal year ending June 30, 1868, was $15,202,400, and the total expenditures embracing all the service for which special appropriations have been made by Congress, amounted to 22,730, 592, showing an excess of expenditures of 56,437,771 ; showing an excess of expendi tures of $6,437,771 deducting from the ex penditures the turn of $1,896,525. the amount of appropriations for ocean, steam ship and other epecial services, the excess of expenditures was $4,541,466. By uMog an unexpended balance in the Treasury of $3, 800,000. the actual sum for which a special appropriation is required to meet the defi ciency, is $7,412 06. The causes which produced this larste excess of expenditure over revenue, were the restoration of serv ices in the lato insurgent States, aud tbe putting into operation of the new service es tablished by acts of Congress, which amount ed within the last two years and a half to about forty-eight thousand seven hundred miles, equal to more than one-third the whole amount of the service at the dose of the war. New postal conventions with Great Britain. Noith Germany, Belgium, the Netherlands, Switzerland, and Italy, re spectively, have been carried into effect ; under their provisions important improve ments have resulted in the reduced rates of international postage, and the enlarged mail facilities with European countries. The cost of the United States trans-Atlantic Ocean mail service, since January 1, 1868, has been largtly lessened under the opera tion of these new conventions ; reduc tion of over one-half having been effected under the new arrangement for Ocean mail steamship service, which went into effect on that date. The attention of Con gress is invited to the practical suggestions aud recommeudations made in his report, by the Postmaster General. OUR POHEION RELATIONS. No important question has occurred dur ing the last year in our accustomed cordial and friendly intercourse with Costa Rica, Guatemala, Honduras. San Salvador , France, Austria, Belgium, Switzerland, Portugal, the Netherlands. Denmark, Sweden ami Nor way, Rome, Greece, Turkey, Persia, Egypt, Liberia, Morocco, Tripoli, Tunis, Muscat, Siam, Borneo and Madagascar. Cordird relations have also been maintained with the Argentine and the Oriental Republics. The expressed wish of Gngre?s that our national good offices might be tendered to those Re publics, and also to Brazil and Paraguay, for bringing to an end the continuous war which has so long been raging in the Valley of the La Plata, has been assiduously com plied with, and fully acknowledged by all the belligerents. That important negotia tion, however, has thus far been without re sult. Charles A. Washburn, late United States Minister to Paraguay, having resign ed, and being desirous to return to the United States, the Rear Admiral command ing the South Atlantic Squadron was early directed to send a ship of war to Ascencion, the capital of Paraguay, to receive Mr. Washburn and his family, aud remove them from a situation which was represented to be endangered by faction and foreign war. The Brazilian commander of the allied inva ding forces refused permission to the Wasp to pass through the blockading forces, and that vessel returned to its accustomed an chorage, remonstrance having been made agaiust the refusal. It was promptly over ruled, and the Waup therefore resumed her errand, received Mr. Washburne and family, and conveyed them to a 6afe and convenient seaport. Iu"the meantime an excited con trovtrsy had arisen between the President of Paraguay and the late United States Minister, which it is understood grew out of his proceedings in giving asylum in the United States legation to alleged enemies of that Republic. The question of the right to give asylum is one alyi difficult and ctften productive of great embarrassment in States well organized and established. Foreign powers refuse either to concede or exercise that right except as to persons actually be longing to the Diplomatic service. On the other hand all such powers insist upon exer cising the right of asylum in States whpre the law of nations is not fully acknowledged, respected and obeyed. 1 he President of Par aguay is understood to have been opposed to Mr. Washburne's proceedings, owing to the injurious and very improbable charge of personal complicity in insurrection and trea son. Tbe correspondence, however, has not reached the United States. Mr. Washburne, in connection with this controversy, repre sents that two United States' citizens at tached to the legation -were arbitrarily seized at bis side when leaving the capital of Par aguay, committed to prison, and there sub- jected to torture lor tne purpose ol procuring confessions of their own criminality, and testimony to support the President's allega tions against the UniUd States Minister. ; A dispatch has been received from Mr. McMahon, the newly appointed Minister to Paraguay, saying that he had reached the La Plate. Ha has been instructed to proceed without delay to Asunscion, there to investi gate the whole subject. The Rear admiral, commanding the United States South Atlan tic Squadron, has been directed to attend the new Minister with a proper naval force, and to sustain such just demands as the occasion may require, and to vindicate the rights of the United States citizens referred to, and of any others who may be exposed to danger in the theater of war With these exception, friendly relations have been maintained between ths United States and Brazil and Paraguay. Oar rela tions during the past year with Bolivia, Ecuador Peru, aud Chile, have become espec ially frieudly and cordial. Spain and the Republics of Peru, Bolivia and Ecuador have expressed their willingness to accept the meditations of the United States for termina ting the war upon the South Pacific coast. Chile ha uor fiually declared upon the ques tion. In the meantime the couflict has praetteally exhausted li&fA, stnee no belliger ent or hostile movement has been made by either party during tha last two years, aud there are no indications of a present purpose to resume hostilities on either side. Great Britian and France have cordially eecoLded our propositions of mediation, and 1 do not forgo the hope that it may soon be accepted by all the belligerents and laad to a eecsie establishment cf peaoe and friendly relations between the Spaui;h - American R. publio and Spain a result whioh would be attend ed with common benefits to the belligerents, and much advantage to all commercial ca tions. I tcm-uunicate for the consideration of Congress a correspondence which shnws that the Bolivian Republic has established the extremely liberal p ii e'p'e of receiving into its citizenship any citiaen of tbe United States, or of an other of tbe American Re publics, upon the simple coodttion of volun tary registry. Ti e c .rrespondeuce herewith submitted will be found painfully replai with accounts of the ruin and wretchedness produced by recent earthquake of un paralled severity ia the Republics of Per Ecuador and Bolivia. The diplomats agen cy and naval officers of the Uuited States who were present in thee countries at the time of these disasters. furrd-hed all 'the re lief in their power to the tufftrera, and were promptly rewarded with grateful and couching acknowledgements by the Con gress of Peru, an appeal to the charity of cur fellow-citizens has been anpwerd by much liberality. In this connection I sub mit an appeal which has b?en made by the Swiss Republic, wht.se government and in stitutions are kindred to our own, in behalf of its inhabitants, who are suffering extreme destitution produced by recent inundstions. Our relations with Mexico during tbe year have len marked by aD increasing growth of mutual confidence. The Mexican Gov ernment has not yet acted upon the treaties celebrated here last summer for establishing the rights of naturalized citizens upon a Just and liberal basis for regulating Coueiilar pow ers, and fur the adjustment of mutual claims. All commercial nations, fs well as all friends of republican institutions, have occaeion to regret the frequent local disturbances which occur in tome of the constituent Slates of Co lumbia. Nothing has occurred, however, to effect the harmony end cordial friendship which have for several years existed between that youthful and vigorous republic and our own. Negotiations aie pending with a view to the survey and censtrnctian of a ship ca nal across the IsthYnus of Darien, nnder the auspices of the United States. I hope to be able to submit tho result of that negotiation to the Senate dining its present session. The very liberal trenty which was en t -red into last year by the United States and Ni carauga has been ratified by the latter re public. Costa Rico, with the earneritnees of a sincerely friendly neighbor, solicits recipro city of trade, which I commend to the con sideration of Congress. The convention cre ated by' treaty between the Uuited St-ite and Venezuela, in July, 1865, for the mutu al adjustment of claims, has been held, and its decisions have been received at the De partment of State. The heretofore recog nized Government of the United States of Venezuela has been subverted, a Provisional Government having been instituted nnder circumslaners which promise durability. It has been formally recognized. I have been reluctantly obliged to ask ex planation and satisfaction for national inju ries committed by tbe President of Hayti. The political and social condition of the Re public of Ilayti and St. Domingo are very unsatisfactory and painful. The abolition of slavery, which has been carried into effect throughout the Island of St. Domingo and the entire West Indies, except the Spauish islands of Cuba and Porto Rico, has been followed by a profound popular conviction of the rightfulness of republican institutions and an intense desire to secure them. The attempts, however, to establish republics there encounters many obstacles, most of which may be supposed to result from long indulged habits of colonial snpineueos and dependence upon Europpan powers.. EXTENSION OF THE PUBLIC DOMAIN. The Fresilent says that the acquisition cf Alaska was marie with the view of extend ing the National iurisdiction in the American hemisphere ; and, believing that a further step could be taken in the same dirsction, he says that last year he entered into a treaty with the King of Denmark for the purchase of the islands of St. Thomas and St. Johns, on the best terms then attainable, and with the express consent of the people of those islands. This treaty still remains under consideration in the Senate. A new convention has been entered into with Den mark, enlarging the time fixed for the final ratification of the original treaty. He fur ther commends to Congress the consideration of the subject of the peaceful annexation of the two republics of the island of St. Do miugo to the United States. COMMBECIAL BECIPSOCITT WITH HAWAII. The President asks the Senate to confirm the treaty for the establishment of commer cial reciprocity betwoen the Hawaiian King dom and th'iB Govornment. TBBATIKS. The President makes mention of two treaties between the United States and Ilaty, for the regulation of Consular Powers, and the extradition of criminals. A liberal Consular Convention has been negotiated with Belgium. Treaties have been ratified beteeu the United States and North Ger many and Bavaria for the regulation of the rights of naturalized citizens. HUDSON BAT CLAIMS. The examination of claims against the United States by the Hudson Bay Company is being diligently prosecuted. R EVOLUTIONS IS JAPAX A3CD SPA!. Japan remains a theater of civil war, msrk ed by religions incideuts and political severities peculiar to that long isolated empire. The Executive has hitherto maintained strict neu trality among the belligerent, and acknowl edges with pleasure that be has been frankly and fully sustained in that course bv an en lightened concurrence and eo operation of the other trat powers, namely, Great Britain, France, the Netherlands, North Germany and liaiT. Spain having recently undercone a mrnln tion, marked by extraordinary unanimity and jneriCTTiinoii oi oruer, me I rvvis;onl Uovertv meut established at Madrid has boen reconi ed, and the friendly iutercours which has so long napily xisted betweec the two eoantrics remain:! uncbatrgeu. POrCLAB VOTE fOK PRKSIDINT. I renew the recommendation contained in my communication to Congress, dated the Ib.h of Jnly lat, a copy ot which accompanies this mw-'gc, teat the judgment of the people ehonld be taken od the propriety of so amend im? the Federal Constitution that it shall pro vide : 1. Tor the election of President and Vice President by a direct vote of the people, in stead of through the aid of electors, and mi. king them ineligible to re-election to the second term. 2. Pat a distinct designation of the person who shall discharge the duties of President in the event of a vacancy in taat office by the death, repjjrnA'ion, or removal of both the PrerHcet nnd Vice President, 3. For the election of Senators of the Uai ted States directly by the people of the several States. ia.Usad of by the Legislatures. 4 For tho limitation to a period of years of the terms of Federal Judges. Frofonndly impressed with the propriety of making ths important mod fications in the Oorstitution. I re.-reetfuily submit them for the e .rtv and mature consideration of Con gress. We fhould, as far as possible, remove all pretext for violations of the organic law by ramedjicg such imperfections as time and ex perience may develope, ever remembering that the Confutation which at any time exists, until changed bj an explicit and authentic act of the whole people, is eeverally binding upon all. In tlie performance of a duty imposed upon m by th Constitution, I have thus communi cated to Congress information of the state of the Union, and recommended for its couaidera tion such measnrea as have seerm d to me nec-e-vary and expedient. If carried into effect, they will hasten the accomplishment of the great and beneficent purposes for which the constitution was ordained, rd which it co-n-jirehensively states were to form a more per fect unioa, establish justice, insure domestic tranqaiilitr, provide for the common defense, promote tie general welfare, and secure the' blessings of liberty to onrelvd and our pos terity. In Congress are vested all legislative power, and apon them devoWes the responsi bility as well or framing unwise and exces arre laws & for nnrlartinr, -i .. measures absolutely deaaandd by thewactsof the country. Let us earnestly hope that, be fore the expiration of our respective terms of service, now rapidly drawing to a close, an All Wie Providence will eo guide our counsels tu to strengthen and preserve the Federal Union ; inspire reverence for the Cooa itution j restore prosperity and happiness to our whole people, and promote on earth peace and good will toward men. Andbfw Jonssox. Vr'AgHI.XGTON D. C. D0. 2, lSGfi- GxrsiES made their first appearance in ITungary about the-year 1117, in tha reiga of Sigiemond. In Northern Hun gary, inhabited by Slavonians, tbey re mained nomadic. Tbe color of these gyp eies vnrieg from white lo red. In Hun gary proper they number 30,009 to 40, 000. There their tradcaare blacksmiths, ransicians and horse dealers. Maria The resa endeavored to interest them in agri cultural pursuit, but unsuccessfully. It ia told of a band of 1,000 gypsies that they successfully defend! a fortress Rgainst a more numerous force. Driving back their assailants, they boasted that their victory would hare been more corrjDlete if thpw had not expended their powder. Hearing this, the wneray reinsert, captured the fort, and, to their diigrac, killed every gypsy- IsaranocB Esoaps. A remarkabL uc coant is given in a late English paper of the escape of a convict from pris .. . cell in wbicb be was confined had an iron door, with a lock entirely on the outside. Tbc;only implements the prisoner had w re a wooden ppoon. some btta of wire, and needle and thread. Out of tho ppoon h made a key ; by means of the needle he rmesed a thread over and under i!ie door ; bits of wire were poshed through tho in spection hole and fastened to this long thr.:.l extending from top to bottom. The key vf as also pushed through, and being fastened to the thread, was brought oppo site to tb key-hole by dexterous manipu lation of the slender line, worked gently in, then turned by means of iho wire, and the door was opened. This is tho-greatest exhibition of skill and patience on record. A ood story is told on Hancock, a scalawag Judjre in Mississippi. I la had been endeavoring fo conrert a conserva tive negro, and failing, 6wore that "any nijrsrer who woold rttn cmctinst his own ram and color ought to be hung n Sambo hung nia noad for a moment, as if in deep med itation.aod then Iookinir the Juds-a straight o o f in the face, said ; "You say a nigger who votes agin bis own race'and color onjht to be hung ?" "Yes." paid the Judsre. -he ousht to ha hnng." "Well. Judfre." said Sarnbo. "liat you think ought fo be done wid da white i- - i . . man who toio agtn ma own race ana col or?" The Judge bid his sable friend good night, and has never invited him to his house since. Cckb rem Cnour. Tbe parents of young children are apt, at this season cf tbe year, to be anxious about croap. An exchange publishes the following recipe for the reliet of croup, and which we conv fur the benefit of mothers : Take one ounce of b wee t. oil and add to it half an ounce of gum opal. Apply to tbe chest, under the arms, the palms of the hands and hol lows ot the feet It will generally relievo the most severe caws of croup in Ave ndn utea. Remember to use externally, and give the patient pleury of cold water to drink. Ham Toast. Hoil a quarter pound of lean ham ; chop it small, with the yolk of three eggs, well beaten, half an ounce of butter, two tablespoonsful of cream, and a little cayenne pepper. Stir it over the fire till it thickens, and fpjead it on hot toast wirh Hie crust cut off. i I; n