PRESIDENT'S MESSAGE.
Fellow-citizens of the Senate and House of Repre-
sentalives:
In obedience to the command of the constitu
tion, it has' now become my duty "to give to
Congress information of the state of the Union,
and .recommend to their consideration such
measures" as I judge to be "necessary and ex
pedient."
But - first, and above all, our thanks are due
to Almighty God for the numerous benefits
which He has bestowed upon this people, and
_our united prayers ought to ascend to Him that
He would continue to bless our great Republic
in time to come as He has lilessed it in time
past. Since the adjotirnment of the last Con
gress our constituents have enjoyed an. unusual
degree of health. The earth has yielded her
fruits abundantly, and has bountifully rewarded
the toil of the husbandman. Our great staples
have commanded high prices, and, np to within
a brief period, our manufacturing, mineral, and
mechanical occupations have largely partaken
of the general prosperity. We have possessed
all the elements' of material wealth, in rich
abundance, and yet, notwithstending 'all these
advantages, our country, in its monetary inter
ests, is at the present moment in a deplorable
condition.
In the midst of unsurpassed plenty in all the
v!oductiorts of agriculture and in all the ele
ments of national *wall; we find . our manufac
tures suspended, our publle,WorkS retarded, our
private enterprizes of different kinds abandoned,
and thousands of useful laborers thrown out of
employment and reduced to want. The revenue
of the government, which is chiefly derived from
duties on imports from abroad, has been greatly
reduced, whilst the appropriations made by
Congress at its last session, for the current fis
cal year are very large in amount.
Under .these circumstances a loan may be re
quired before the close of your present session ;
but this, although to he deeply regretted,would
prove to be only a slight misfortune when com
pared with the suffering and distress prevailing
among the people. With this the government
cannot fail deeply to sympathise, though it may
be without the power to extend relief.
It is our duty to inquire what has produced
such unfortunate results, and whether their re
currence can be prevented. In all former re
vulsions the blame might have been fairly at
tributed to a variety of co-operating causes;but
not so upon the present occasion. It is appa
rent that our existing misfortunes have procee
ded solely from our extravagant and vicious
system of paper currency and bank credits, ex
citing the people to wild speculations and gam
bling in stocks. These revulsions must contin
ue to recur at successive intervals so long as
the amount of the paper currency and bank
loans and discounts of the country shall be left
to the discretion of fourteen hundred irrespon
sible banking institutions which from the very
law of their nature will consult the interest of
their stockholders_ rather than the public wel
fare.
The framers of the constitution, when they
gave to Congress the power, "to coin money
and to regulate the value thereof," and prohibit
the States from coining money, emitted bills of
credit, or making anything but gold and silver
coin a tender in payment of debts, supposed
they had protected the people against the evils
of and excessive and irredeemable paper cur
rency. -They are not responsible for the exist
ing anomaly that a government endowed with
the sovereign attribute of coining money and
regulating the value thereof should have no pow
er to prevent others from driving this coin out
nf the country and filling up the channels of
circulation with paper which does not repre
sent gold and eilier.
It fa one of the highest and most responsible
duties of the government to insure to the people
a sound circulating medium,- the amount of
which ought to be adapted with the utmost pos
sible wisdom and skill to the - Wants of internal
trade and foreign exchanges. If this be either
greatly above or greatly below the proper stan
dard, the marketable value of every man's prop
erty is increased_ or diminished in the same pro
portion, and.lnjustice to individuals as well as
incalculable evils to the community are the
consequence. _ _
Unfortunately, under the construction of the
federal constitutien, which has now prevailed
too long to be changed, this important and deli
cate duty has been dissevered from the coining
power and virtually transferred to more than
fourteen hundred State banks, acting indepen
dently of each other, and regulating their paper
issues almost exclusively by a regard to the
present interest of their stockholders. Exercis
ing the sovereign power of providing a paper
currency, instead of coin, for the country, the
first duty which these banks owe to the public
is to keep in their vaults a sufficient amount of
gold and silver to insure the convertibility of
their notes into coin at all times and under all
circumstances. No bank ought ever to be char
tered without such restrictions on its business
as to secure this result. All other restrictions
are comparatively vain.
This is the only true touchstone, the only
sufficient regulator of a paper currency—the
only one which can guard the public against
over issues and bank suspensions. As a collat
eral and. eventual security it is doubtless wise,
and in all cases ought to be required, that
banks shall hold an amount of United States or
State securities equal to their notes in circula
tion and pledged for their redemption. This,
however, furnishes no adequate security against
over-issues. On the contrary, it may be perver
ted to inflate the currency. Indeed, it is pos
sible by this means to convert all the debts of
the United States and State Governments into
bank notes, without reference to the specie re
quired to redeem them.
However valuable these securities may be in
themselves, they cannot be converted into gold
and silver at the moment of pressure, as our ex
perienee teaches, in sufficient time to Prevent
bank suspensions and the depreciation of bank
notes. In England, which is to a. considerable
extent a paper-currency country, though vastly
behind our own in this respect, it was deemed
advisable, anterior to the act of Parliament of
1844, which wisely separated the issue of notes
from the banking department, for the Bank of
England always to keep on hand gold and silver
equal to one-third of its combined circulation
and deposites.
If this proportion was no more than sufficient
to secure the - convertibility of its notes, with
the whole of Great Britain, and to some extent
the continent of Europe as a field for its circula
tion, rendering it almost impossible that a sud
den and immediate run to a dangerous amount
should be made upon it, the same proportion
would certainly be insufficient under our bank
ing system. Each of our fourteen hundred banks
has but a limited circumference for its circulation
and in the course of a very few days the deposi
tors and note holders might demand from such a
bank a sufficient amount in specie to compel it to
suspend, even although it had coin in its vaults
equal to one-third of its immediate liabilities.
And yet I am not aware,
with the exception
of the banks of Louisiana, that any State bank
throughout the Union has been required by its
charter to keep this or any other proportion of
gold and silver compared with the amount of its
combined circulation and deposites. What has
been the consequence? In a recent report
made by the Treasury Department on the con
dition of the banks throughout the different
States, according to returns dated nearest to
January, 1857, the aggregate amount of actual
specie-in - their vaults is $58,349,838, of their
circulation $214,778,822, and of their deposltea
$230,351,352. Thus it appears that these
banks in the aggregate have considerably less
than one dollar in seven of gold and silver com-
WILLIAM LEWIS,
VOL. XIII.
pared with their circulation and deposites.
It was palpable, therefore, that the very first
pressure must drive them to suspension, and
deprive the people of a convertible currency
with all its disastrous consequences. It is truly
wonderful that they should have so long contin
ued to preserve their credit,when a demand for
the payment of one-seventh of their immediate
liabilities would have driven them into insolven
cy. And this is the condition of the banks,
notwithstanding that four hundred millions-of
gold from California have flowed in upon zus
within the last eight years, and the tide still
continues to flow. Indeed, such has been the
extravagance of bank credits that the banks
now hold a considerably less amount of specie,
either in proportion to their capital or to their
circulation and deposites combined, than they
did before the discovery of gold in California.
Whilst in the year 1848 their specie in pro
portion to their capital was more than equal
to one dollar for four and a half, in 1857 it does
not amount to one dollar for every six dollars
and thirty-three cents 'of their capital. In the
year 1848 the Specie was equal within a very
small fraction to one dollar in five of theif cir
culation and deposites, in 1857 it is not equal
to one dollar in seven and a half of their circu
lation and deposites.
From this statement it is easy to account for
our financial history for the last forty years.—
It has been a history of extravagant expansions
in the business of the country, followed by ruin
ous contractions. At successive intervals the
best and most enterprising men have been temp
ted to their "ruin by excessive bank loans of
mere paper credit, exciting them to extravagant
importations of foreign goods,wild speculations,
and ruinous and demoralizing stock gambling.
When the crisis arrives, as it must, the banks
can extend no relief to the people. In a vain
struggle to redeem their liabilities in specie
they are compelled to contract their loans and
their issues ; and at last, in the hour of distress,
when their assistance is most needed, they and
their debtors together sink into insolvency.
It is this paper system of extravagant expan
sion, raising the nominal price of every article
far beyond its real value, when compared with
the cost of similar articles in countries whose
circulation is wisely regulated, which has pre
vented us from competing in our own markets
with foreign manufacturers, has produced ex
travagant importations and has counteracted
the effect of the large incidental protection af
forded to our domestic manufactures by the
present revenue tariff. But for this the branch
es of our manufactures composed of raw mate
rials, the prOduction of our own country—such
as cotton, iron and woollen fabrics—would not
only have acquired almost exclusive possession
of the home market, but would have created for
themselves a foreign market throughout the
world.
Deplorable, however, as may be our present
financial condition, we may yet indulge in bright
hopes for the future. No other nation has ever
existed which could have endured such violent
expansions and contractions of paper credit
without lasting injury ; yet the buoyancy of
youth, the energies of our population, and the
spirit which never quails before difficulties, will
enable us soon to recover from our financial em
barrassment, and may even occasion us speedily
to forget the lesson which they have taught.
In the meantime it is the duty of the govern
ment by all proper means within its power, to
aid in alleviating the sufferings of the people
occasioned by the suspension of the banks, and
to provide against a recurrence of the same ca
lamity.- Unfortunately, in either aspect of the
case, it can do but little. Thanks to the inde
pendent treasury, the government has not sus
pended payment, as it was compelled to de •by
the failure of the banks in 1837. It will con
tinue to discharge its liabilities to the people in
gold and silver. Its disbursements in coin will
pass into circulation, and materially assist in
restoring a sound currency. From its high
credit, should wo be compelled to make a tem
porary loan, it can be effected on advantageous
terms. This, however, shall, if possible, be
avoided; but, if not, then the amount shall be
limited to the lowest practicable sum.
I have, therefore, determined that whilst no
useful government works already in progress
shall be suspended, new works, not already
commenced, will be postponed, if this can be
done without injury to the country. Those ne
cessary for its defence shall proceed as though
there had been no crisis in our monetary affairs.
But the Federal Government cannot do much
to provide against a recurrence of existing evils.
Even if insurmountable constitutional objections
did not exist against the creation of a National
Bank, this would furnish no adequate preven
tive security. The history of the last Bank of
the United States abundantly proves the truth
of this assertion. Such a bank could not, if it
would, regulate the issues and credits of four
teen hundred State banks in such a manner as
to prevent the ruinous expansions and contrac
tions in our currency which afflicted throughout
the existence of the late bank, or secure us
against future suspensions. In 1825 an. effort
was made by the Bank of England to curtail the
issues of the country banks under the most fa
vorable circumstances.
The paper currency had been expanded to a
ruinous extent, and the Bank put forth all its
power to contract it in order to reduce prices
and restore the equilibrium of foreign exchan
ges. It accordingly commenced a system of
curtailment of its loans and issues, in the vain
hope that the joint stock and private banks of
the kingdom would be compelled to follow its
example. It found, however, that as it con
tracted they expanded, and at the end of . the
process, to employ the language of a very high
official authority, "whatever reduction of the
paper circulation was effected by the Bank of
England (in 1825) was more than made up by
the issues of the country banks."
But the Bank of the United States would not,
if it could, restrain the issues and loans of the
State banks, because its dutyn..S a regulator of
the currency must often be in direct conflict
with the immediate interests of its stockholders.
If we expect one agent to restrain or control
another their interests must, at least in some
degree, be antagonistic. But the directors of a
Bank of the United States would feel the same
interest and the same inclination with the di
rectors of the State banks to expand the curren
cy, to accommodate their favorites and friends
with loans, and. to declare large dividends. Such
has been our experience in regard to the last
bank.
After all, we must mainly rely upon the pa
triotism and wisdom of the States for the pre
vention and redress of the evil. If they will
afford us a real specie basis for our paper circu
lation by increasing the denomination of bank
•
•LF.
;,.
•• . •
••••• •
1.
notes, first to twenty, .and afterwards to fifty
dollars; if they will require that the banks Shall
at all times keep on hand at least one dollar of
gold and silver for every three dollars of their
circulation and deposites ; and if they will pro
vide by a self-executing enactment, which noth
ing can arrest, that the moment they suspend
they shall go into liquidation, I believe that
such provisions, with a weekly publication by
each bank of a statement of its condition, would
go far to secure us against future suspensions
of specie payments.
Congress, in my opinion,, possesses the power
to pass a uniform bankrupt law applicable to all
banking institutions throughout the United
States, and I strongly recommend its exercise.
This would make it the irreversible organic law
of each bank's existence, that a suspension of
specie payments shall produce its civil death.
The instinct of self-preservation would then
compel it to perform its duties in such a manner
as to escape the penalty and preserve its life.
The existence of banks and the circulation of
bank paper are so identified with the habits of
our people, that they cannot at this day be sud
denly abolished without much immediate injury
to the country. If we could confine them to
their appropriate sphere, and prevent them from
administering. to the spirit of wild and reckless
speculation by extravagant• loans and issues,
they might be continued with advantage to the
public.
But this I say, after long and much reflection:
if experience shall prove it to be impossible to
enjoy the facilities which well-regulated banks
might afford, without at the same time suffering
the calamities which the excesses of the banks
have hitherto inflicted upon the country, it
would then be far the lesser evil to deprive them
altogether of the power to issue a paper curren
cy and confine them to the functions of banks of
deposite and. discount.
Our relations with foreign governments are,
upon the whole, in a satisfactory condition.
The diplomatic difficulties which existed be
tween the Government of the United States and
that of Great Britain at the adjournment of the
last Congress have been happily terminated by
the appointment of a British minister to this
country, who has been cordially received.
'Whilst it is greatly to the interests, as I am
convinced it is the sincere desire, of the govern
ments and people of the two countries to be on
terms of intimate friendship with each other, it
has been our misfortune almost always to have
had some irritating, if not dangerous, outstand
ing questions with Great Britain.
Since the origin of the government we have
been employed in negotiating treaties with that
power, and afterwards in discussing their true
intent and meaning. In this respect, the con
vention of April 19, 1850, commonly called the
Clayton and Bulwer treaty, has been the most
unfortunate of all ; because the two governments
place directly opposite and contradictory con
structions upon its first and most important ar
ticle.
Whilst, in the United States, we believed that
this treaty would place both powers upon an
exact equality by the stipulation that neither
will ever "occupy, or fortify, or colonize, or as
sume to exercise any dominion" over any part
of Central America, it is contended by the Bri
tish government that the true construction of
this language has left them in the rightful pos
session of all that portion of Central America
which was in their occupancy at the date of the
treaty; in fact, that the treaty is a virtual re
cognition on the part of the United States of the
right of Great Britain, either as owner or pro
tector, to the whole extensive coast of Central
America, sweeping round from the Rio Hondo
to the port and harbor of San Juan del Nicara
gua, together with the adjacent Bay Islands,
except the comparatively small portion of this
between the Sarstoon and Cape Honduras. Ac
cording to their construction, the treaty does no
more than simply prohibit them from extending
their possessions in Central America beyond the
present limits. It is not too much to assert
that if in the United States the treaty had been
considered susceptible of such a construction, it
never would have been negotiated under the au
thority of the President, nor would it have re
ceived the approbation of the Senate. The uni
versal conviction in the United States was, that
when our government consented to violate its
traditional and time-honored policy, and to
stipulate with a foreign government never to
occupy or acquire territory in the Central Amer
ican portion of our own continent, the consider
ation for this sacrifice was that Great Britain ,
should, in this respect at least, be placed in the
same position with ourselves. Whilst we have
no right to doubt the sincerity of the British
government in their construction of the treaty,
it is at the same time my deliberate conviction
that this construction is in opposition both to its
letter and its spirit.
Under the late administration negotiations
Were instituted between the two governments for
the purpose, if possible, of removing these diffi
culties ; and a treaty having this laudable object
in view was signed at London on the 17th Octo
ber, 1856, and was submitted by the President
to the Senate on the following 10th of December.
Whether this treaty, either in its original or
amended form, would have accomplished the
object intended without giving birth to new and
embarrassing complication between the two
governments, may perhaps be well questioned.
Certain it is, however, it was rendered much
less objectionable by the different amendments
made to it by the Senate. The treaty, as amend
ed, was ratified by me on the 12th March, 1857,
and was transmitted to London for ratification
by the British government. _ That government
expressed, its willingness to concur in all the
amendments made by the Senate with the single
exception of the clause relating to Ruatan and
the other islands in the Bay of Honduras. The
article in the original treaty, as submitted to
the Senate, after reciting that these islands and
their inhabitants "having been by a convention
bearing date the 27th day of August, 1856, be
tween her Brittanic Majesty and the republic
of Honduras, constituted and declared a free
territory under the sovereignty of the said re
public of Honduras," stipulated that "the two
contracting powers do hereby mutually engage
to'recognize and respect in all future time the
independence and rights of the said free territo
ry as a part of the republic of Honduras."
Upon an examination of this convention be
tween Great Britain and Honduras of the 27th
August, 1856, it was found that, whilst declar
ing the Bay Islands to be "a free territory un
der the sovereignty of the republic of Honda
ras," it deprived that republic of rights without
which its sovereignty over them could scarcely
be said to exist. It divided them from the re
mainder of Honduras, and gave to their inhabi
tants a separate gavornment of their own, with
HUNTINGDON, PA.
-PERSEVrRE.-
DECEMBER 16, 1857.
legislative, executive, and judicial officers elect
ed by themselves.
It deprived the government of Honduras of
the taxing power in every form, and exempted
the people of the island from the performance
of military duty except for their own exclusive
defence. It also prohibited that republic from
erecting fortifications upon them for their pro
tection—thus leaving them open to invasion
from any quarter; and, finally, it provided
that slavery shall not at any time hereafter
be permitted to exist therein."
Had Honduras ratified this convention, she
would have ratified the establishment of a State
substantially independent within her own limits,
and
,a State at all times subject to British influ
ence and control. Moreover, had the United
States ratified the treaty with Great Britain in
its original form, we should have been bound
"to recognize and respect in all future time"
these stipulations to the prejudice of Honduras.
Being in direct opposition in the spirit and
meaning of the Clayton and Bulwer treaty as
understood in the United States, the Senate re
jected the entire clause, and substituted in its
stead a simple recognition of the sovereign right
of Honduras to these islands in the folowing,
language: " The two contracting parties do
hereby mutually engage to recognise and res
pect the islands of Ruatan, Bonaco, Utila,Bar
baretta, Helena, and Morat, situate in th Bay
of Honduras, and off the coast of the republic of
Honduras, as under the sovereignty and as part
of the said republic of Honduras."
Great Britain rejected this amendment, as
signing as the only reason, that the ratifications
of the convention of the 27th August, 1556, be
tween her and Honduras, had not been " ex
changed, owing to the hesitation of that govern
ment." Had this been done, it is stated that
"her Majesty's government would have had lit
tle difficulty in agreeing to the modification
proposed by the Senate, which then would have
had in effect the same signification as the origi
nal wording." Whether this would have been
the effect; whether the mere circumstance of'
the exchange of the ratifications of the British
convention with Honduras prior in point of time
to the ratification of our treaty with Great Bri
taie:Avould "in effect," have had "the same
signification as the original wording," and thus
have nullified the amendment of the Senate,may
well be doubted. It is, perhaps, fortunate that
the question has never arisen.
The British government, immediately after
rejecting the treaty as amended, proposed to
enter into a new treaty with the United States,
similar in all respects to the treaty which they
had just refused to ratify, if the United States
would consent to add to the Senate's clear and
unqualified recognition of the sovereignty of
lionthiras over the Bay Islands the following
conditional stipulation : " Whenever and so soon
as the republic of Honduras shall hive conclu
ded and ratified a treaty with Great Britian, by
- which Great Britian shall have ceded, and the
republic of Honduras shall have accepted, the
said islands, subject to the provisions and con
ditions contained in such treaty.
The proposition was, of course, rejected.—
After the Senate had refused to recognize the
British convention with Honduras of the 27th
August, 1856, with full knowledge of its con
tents, it was impossible for me, necessarily
ignorant of the provisions and conditions"
which might be contained in a future ccn
vention between the same parties, to sanction
them in advance.
The fact is, that when two nations like
Great Britain and the United States, mutu
ally desirous as they are, and I trust ever
may be, of maintaining the most friendly re
lations with each other, have unfortunately
concluded a treaty w hich they understand in
senses directly opposite, the wisest course is
to abrogate such a treaty by mutual consent,
and. commence anew. Had this been done
promptly, all difficulties in Central America
would most probably, ere this, have been ad
justed to the satisfaction of both parties.—
The time spent in discussing the meaning of
the Clayton and Bulwer treaty would have
been devoted to this praiseworthy purpose,
and the task would have been the more easi
ly accomplished because the interest of the
two countries in Central America is identical,
being confined to securing safe transits over
air the routes across the Isthmus.
'Whilst entertaining these sentiments, I shall
nevertheless not refuse to contribute to any rea
sonable adjustment of the Central American
questions which is not practically inconsistent
with the American interpretation of the treaty.
Overtures for this purpose have bees recently
made by the British government in a friendly
spirit, which I cordially reciprocate ; but wheth
er this renewed effort will result in success I am
not yet prepared to express au opinion. A brief
period will determine.
With France our ancient relations of friend
ship still continue to exist. The French gov
ernment have in several recent instances which
need not be enumerated, evinced a spirit of good
will and kindness towards our country which I
heartily reciprocate. It is, notwithstanding,
much to be regretted that two nations whose
productions are of such a character as to invite
the most extensive exchanges and freest com
mercial intercourse, should continue to enforce
ancient and obsolete restrictions of trade against
each other. Our commercial treaty with France
is in this respect an exception from our treaties
with all other commercial nations. It jealously
levies discriminating duties both on tonnage and
on articles, the growth, produce, or manufac
ture of the one country, when arriving in vessels
belonging to the other.
More than forty years ago, on the 3d March,
1815, Congress passed an act offering to all na
tions to admit their vessels laden with their na
tional productions into the ports of the United
States upon the same terms with our own ves
sels, provided they would reciprocate to us
similar advantages. This act confined the re
ciprocity to the productions of the respective
foreign nations who might enter into the propo
sed arrangement with the United States. The
act of May 24, 1828, removed this restriction,
and offered a similar reciprocity to all such ves
sels without reference to the origin of their
cargoes. Upon these principles, our commer
cial treaties and arrangements have been found
ed, except with France ; and let us hope that
this exception may not long exist.
Our relations with Russia remain, as they
have ever been, on the most friendly footing.
The present Emperor, as well as his predeces
sors, have never failed, when the occasion of
fered, to manifest their good will to our coun
try ; and their friendship has always been
highly appreciated by the government and
people of the United States.
With all other European governments, ex
cept that of Spain, our relations are as peace
ful as we could desire. I regret to say that
no progress whatever has been made, since
the adjournment of Congress, towards the
settlement of any of the numerous claims of
our citizens against the Spanish government.
Besides, the outrage committed on our flag by
the Spanish war frigate Ferrolanna, on the
high seas, off the coast of Cuba, in March,
1855, by firing into the American mail steam
er El Dorado, and detaining and searching
her, remains unacknowledged and unredress
ed. The general tone and temper of the
Spanish government towards that of the Uni
ted States are much to be regretted. Our
present envoy extraordinary and- minister
plenipotentiary to Madrid has asked to be re
called : and it is my purpose to send out a
new minister to Spain, with special instruc
tions on all questions pending between the
two governments, and with a determination
to have them speedily , and amicably adjusted,
if this be possible. In the meantime, when
ever our minister urges the just claims of our
citizens on the notice of the Spanish govern
ment, he is met with the objection that Con
gress
have never made the appropriation rec
ommended by President Polk in his annual
message of December, 1847, " to be paid to
the Spanish government for the purpose of
distribution among the claimants in the Am
istad case." A similar recommendation was
made by my immediate predecessor in his
message of December, 1853 ; and entirely
concurring with both in the opinion that this
indemnity is justly due under the treaty with
Spain of Oct. 27, 1795, I earnestly recom
mend such an appropriation to the favorable
consideration of Congress.
A treaty of friendship and commerce was
concluded at Constantinople on the 13th De
cember, 1856, between the United States and
Persia, the ratifications of which were ex
changed at Constantinople on the 13th June,
1857, and the treaty was proclaimed by the
President on the 18th August, 1857. This
treaty, it is believed, will prove beneficial to
American commerce. The Shah has mani
fested an earnest disposition to cultivate
friendly relations with our country, and has
expressed a strong wish that we should be
represented at Teheran by a minister pleni
potentiary ; and I recommend that an appro
priation be made for this purpose.
Recent occurrences in China have been
unfavorable to a revision of the treaty with
that empire of the 3d July, 1844, with a view
to the security and extension of our com
merce. The 24th article of this treaty stipu
lated for a revision of it, in case experience
should prove this requisite ; "in which case
the two governments will, at the expiration
of twelve years from the date of said conven
tion, treat amicably concerning the same, by
means of suitable persons appointed to con
duct such negotiations." These twelve years
expired on the 3d July, 1856 , but long be
fore that period it was ascertained that im
portant changes in the treaty were necessary;
and several fruitless attempts were made by
the commissioner of the United States to ef
fect these changes. Another effort was about
to be made for the same purpose by our com
missioner, in conjunction with the ministers
of England and Prance, but this was sus
pended by the occurrence of hostilities in
the Canton river between Great Britain and
the Chinese Empire. These hostilities have
necessarily interrupted the trade of all na
tions with Canton, which is now in a state
of blockade, and have occasioned a serious
loss of life and property. Meanwhile the in
surrection within the empire against the ex
isting imperial dynasty still continues, and
it is difficult to anticipate what will be the
result.
Under these circumstances, I have deemed
it advisable to appoint a distinguished citi
zen of Pennsylvania, envoy extraordinary
and minister plenipotentiary to proceed to
China, and to avail himself of any opportu
nities which may offer to effect changes in
the existing treaty favorable to American
commerce. He left the United States for the
place of his destination in July last in the
war steamer Minnesota. Special ministers
to China have also been appointed by the
governments of Great Britain and France.
Whilst our minister has been instructed to
oocupy a neutral position in reference to the
existing hostilities at Canton, he will cordially
co-operate with the British. and French min
isters in all peaceful measures to secure by
treaty stipulations, those just concessions to
commerce which the nations of the world
have a right to expect, and which China can
not long be permitted to withhold. From as
surances received, I entertain no doubt that
the three ministers will act in harmonious
concert to obtain similar cominercial treaties
for each of the powers they represent.
We cannot fail to feel a deep interest in all
that concerns the welfare of the independent
republics on our own continent, as well as of
the empire of Brazil.
Our difficulties with New Granada, which
a short time since bore so threatening an as
pect are, it is to be hoped, in a fair train of
settlement in a manner just and honorable to
both parties.
The Isthmus of Central America, including
that of Panama, is the great highway between
the Atlantic and Pacific, over which a large
portion of the commerce of the world is des
tined to pass. The United States aro more
deeply interested than any other nation in
preserving the freedom and security of all
the communications across this isthmus. It
is our duty, therefore, to take care that they
shall not be interrupted either by invasions
from our own country or by wars between
the independent States of Central America.
Under our treaty with New Granada of the
12th of December 1846, we are bound to
guaranty the neutralization of the Isthmus of
Panama, through which the Panama railroad
passes, " as well as the rights of sovereignty
and property which New Granada has and
possesses over the said Territory." This ob
ligation is founded upon equivalents granted
by the treaty to the government and people
of the United States.
tinder these circumstances, I recommend
to Congress the passage of an act authorizing
*
Editor and Proprietor.
the President, in case of necessity, to employ
the land and naval forces of the United States
to carry into effect this guaranty of neutrality
and protection. I also recommend similar
legislation for the security of any other route
across the isthmus in which we may acquire
an interest by treaty.
With the independent republics on this
continent it is both our duty and our interest
to cultivate the most friendly relations. We
can never feel indifferent to their fate, and
must always rejoice in their prosperity. Un
fortunately, both for them and for us, our ex
ample and advice have lost much of their in
fluence in consequence of the lawless expedi
tions which have been fitted out against some
of them within the limits of our country.—
Nothing is better calculated to retard our
steady material progress, or impair our char
acter as a nation, than the toleration of such
enterprises in violation of the law of nations.
It is one of the first and highest duties of
any independent State, in its relations. with
the members of the great family of nations,
to restrain its people from acts of hostile ag
gression against their citizens or subjects.--
The most eminent writers on public law do
not hesitate to denounce such hostile acts as
robbery and murder.
Weak and feeble States, like those of Cen
tral America, may not feel themselves able
to assert and vindicate their rights. The
case would be far different if expeditions were
set on foot within our own territories to make
private war against a powerful nation. If
such expeditions were fitted out from abroad
against any portion of our own country, to
burn down our cities, murder and plunder
our people, and usurp our government, we
should call any power on earth to the strict
est account for not preventing such enormities.
NO. 26,
Ever since the administrltion of General
Washington, acts of Congress have been in
force to punish severely the crime of setting
on foot a military expedition within the lim
its of the United States, to proceed from
thence against a nation or State with whom
we arc at peace. The present neutrality act
of April 20th, 1818, is but little more than a
collection of pre-existing laws. Under this
act the President is empowered to employ the
land and naval forces and the militia "for
the purpose of preventing the carrying on
of any such expedition or enterprise from
the territories and jtirisdiction of the United
States," and the collectors of customs are
authorized and required to detain any vessel
in port when there is reason to believe she
is about to take part in such lawless enter-
prises.
When it was first rendered probable that
an attempt would be made to get up another
unlawful' expedition against Nicaragua, the
Secretary of State issued ioictions to the
marshals and district attorneys, which were
directed by the Secretaries of War and the
Navy to the appropriate army and navy offi
cers, requirina• al them to be vigilant, and to
use their best exertions in carrying into ef
fect the provisions of the act of 1818. Not
withstanding these precautions, the expedi
tion has escaped from our shores. Such en
terprises can do no possible good to the coun
try, but haie already inflicted much injury
both on its interests and its character. 'they
have prevented peaceful emigration from th©
United States to the States of Central Amer
ica, which would not fail to prove hi g hly ben
eficial to the parties concerned. In a pe
cuniary point of view alone, our citizens have
sustained heavy losses from the seizure and
closing of the transit route by the San Juan
between the two oceans.
The leader of the recent expedition was
arrested at New Orleans, but was discharged
on giving bail for his appearance in the in
sufficient sum of two thousand dollars.
I commend the whole subject to the serious
attention of Congress, believing that our duty
and our interest, as well as our national char
acter, require that we should adopt such
measures as will be effectual in restraining
our citizens from committing such outrages.
I regret to inform you that the President
of Paraguay has refused to ratify the treaty
between the United States and that State as
amended by the Senate, the signature of
which was mentioned in the message of my
predecessor to Congress at the opening of its
session in December, 1853. The reason as
signed for this refusal will appear in the cor
respondence herewith submitted.
It being desirable to ascertain the fitness
of the river La Plata and its tributaries for
navigation by steam, the United States Steam
er Water Witch was sent thither for that pur
pose in 1853. This enterprise was success
fully carried on until February, 1855, when,
whilst in the peaceful prosecution of her voy
age up the Parana river, the steamer was
fired upon by a Paraguayan fort. The fire
was returned; but as the Water Witch was
of small force, and not designed for offensive
operations, she retired from the conflict. The
pretext upon which the attack was made was
a decree of the President of Paraguay of Oc
tober, 1854, prohibiting foreign vessels of
War from navigating the rivers of that State.
As Paraguay, however, was the owner of but
one bank of the river of that name, theother
belonging, to Corrientes, a State of the Argen
tine Confederation, the right of its govern
ment to expect that such a. decree would he
obeyed cannot be acknowledged. But the
Water Witch was not, properly speaking, a.
vessel-of-war. She was a small steamer en
gaged in a scientific enterprise intended for
the advantage of commercial States general
ly. Under these circumstances, I am con
strained to consider the attack upon her as
unjustifiable, and as calling for satisfaction
from the Paraguayan government.
Citizens of the United States, also, who
were established in business in Paraguay,
have had their property seized and takenfrom
them, and have otherwise been treated by
the authorities in an insulting and arbitrary
manner, which requires redress.
A demand for these purposes will be made
in a firm but conciliatory spirit. This will
the more probably be granted if the Execu
tive shall have authority to use other means
in the event of a refusal. This is accordingly
recommended.
It is unnecessary to state in detail the alarming condi
tion of the Territory of Kansas at the time of my inaugu
ration. ,The opposing parties then stood in 'hostile array
againt each other, and any accident might have relighted
the flames of civil war. Besides, at this critical moment,
Kansas was left without a governor by the resignation of
Gov. Geary. "
On the 10th of February previous, the territorial legis
lature had passed a law providing for the election of dele
gates on the third Monday ofJune. tea convention to meet
on the first Monday of September, for the purpose of fram
ing a constitution preparatory to admission into the Uni
on. This law was in the main fair andjust; and it is to bo
regretted that all the (plain:led electors had not registered
themselves and voted under its provisions.
At the time of the election for delegates, an extensive,
organization existed in the Territory', whose avowed ob
ject it was, if need be, to put down the lawful government
by force, and to establish a government of their own un
der the so-called Topeka constitution. The persons at
tached•to this revolutionary organization abstained from
taking any part in the election.
The net of the territorial legislature had omitted to pro
vide for submitting to the -people the constitution which
might be framed by the convention; and in the excited
state of public feeling throughout Eames an apprebeusion
extensively prevailed that a design existed to force upon
them a constitution in relation to slavery against their
will. In this emergency it I.....:caine my duty, as it was my
unquestionable right, havingin view the union of all good
citizens in support of the territorial laws, to express an
opinion on the true construction of the provisions con
cerning slavery contained in the orgnnle act of Congress
of the liath May. 1554. Congress declared it to be -.the