-ATT' AMERICAN _VO LUN TEER. ■ jpODLianED EVERT TUBn|sDAT lIOItNINO BY Johnß. Bratton. TERMS'. £ _nnn Dollar and Fifty Cents, h*W°ln ad'vAnco’j Two Dollars it. paid within the volt l and Two Dollars and Fifty Cents, if not bMd within the year. Those terms will bo rig idly adhered to in every instance. No sub scription discontinued until all arrearages are paid unless at the option of the Editor.' 1 Advertisements —Accompanied by the cash, and not exceeding one square, will be.insorlcd throe times for One Dollar, and twenty-five cents lor each additional insertion. Those of a great tor length in proportion. Jon-PniNT/NU —Such ns Hand-bills, Posting bills, Pamphlets, Blanks, Labels, &c.,&c., exe cuted with occbracy pnd at the shortest notice. PRESIDENT’S MESSAGE. Fellow-citizens of the Senate and House of Rep resenidtives: In obedience to the command of the Copsli tution, it has now become my duly “ to give the Congress information of the State of the Union, and recommend to their consideration , such measures” as I judge to be “ necessary and expedient.” . . But first, and above all; our thanks are duo 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 tomless our’great Republic ifl time to come as He has blessed it in time 'past. Since the adjournment of the last Con gress our constituents have enjoyed.an unusual •degree of health. • The'earth has yielded her fruits abundantly, and has bountifully reward, <e4 the toil of the husbandman.. Our great sta ples have commanded high prices, and, up 'till within a brief period, our manufacturing, min eral, and mechanical occupations have largely partaken of the general prosperity. We have possessed all the elements of material wealth in rich abundance, and yet, notwithstanding all these advantages, our country-, in its monetary ■interests, is at the present moment in a deplo rable condition. In the midst of unsurpassed plenty in all the productions of agriculture and 'in all the elements of national wealth, we find qtir manufactures suspended, our public works .retarded, our. private enterprises of different dciuds abandoned, and thousands of useful labor ,ersthrown put of employment and reduced to want. The revenue of the Government, which. 5B 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 fiscal year arc very largo in amount. . Under these circumstances a loan may bo re quired before the close of your present session ; but thiS.nltbough deeply to be regretted, would prove to be only a alight..misfortune when com pared with the sufterimand distress prevailing among the people. With this the Government cannot fail deeply, IQ sympathize, though it-nmy be without the power to extend relief. It is our■ duty.to inquire what has produced such unfortunate results, and whether their re currence ciin be prevented. In all former re vulsions, the blilme might have been fairly at tributed to avar tty of co-operating causes ; . .but not so' upon the present occasion. .. It is ap parent that our existing misfortunes have pro .ceeded solely from our extravagant and vicious system of paper currency and bank credits; ex citing thp people to wild speculations and gam bling in stocks. Th&to revulsions must, con tinue to .recur at successive intervals so long as the amount of the paper currency and batik loans and discounts of the country shall be left , to the discretion of fourteen hundred irrespon sible banking institutions,-which, from the ve ry law of their-nature, will consult the interest, of their stockholders father than the public welfare. “ The framers of the 'Constitution, when ihey gave.to Congress the power “ to coin money, and to regulate the value therwif,’'and ptohtb,- • jted tlio. States, from coining money, emitting " .Bills, of credit, or making anything'-'but gold ...and .silver coin a legal tender in’ payment of debts, supposed they had protected the people against the evils of an excessive and irredeema ble paper currency, They are not responsible for the existing anomaly that a Government endowed willi the sovereign attribute.of coining money and regulating the value thereof should have no power 10 prevent others from driving this coin out of the coimlty, and filling up the channels of circulation-with paper which does not represent gold and Silver. ■ It is one of the highest.and most responsible duties of Government to insure to the people a sound circulating medium, the amount of which ought to be ..adapted With the utmost possible wisdom and skill to the wants of internal trade and foreign exchanges. If this be either great ly above or. greatly below the proper standard, the .marketable value of every man’s property is increased or diminished in the same propor tion, and, injustice to individuals, as well ns in calculable evils to the community, arc the con sequence. Unfortunately, under the construction of the Federal Constitution.,which has how prevailed too long td be dliangcd, this important and del iodic duty lifts been dissevered from the coining flower, and virtually transfiirred to more than fourtce'ri K.undred State banks, noting independ ’ cntlyof each other, and regulating their paper -Issues almost exclusively by a regard . to the present interest Of their stockholders. Exercis - ing the sovereign power df pfovidirtg a paper currency, instead of coiri, fo’r the countfy, the first ditty Which these.batiks owe to the public is,, to,keep 1 hi tlfeif ♦mtltsi a sufficient amount pf gold and silvcf to insure the convertibility rff their notes into coin at all times, and under all circumstances. No- bank ought ever to bo chartered without such restrictions ort its busi ness as to secure this'result. All other rcstrid fions are comparatively vain. This is the only true touchstone, the only efficient regulator of a paper currency—thconlyone which can guard : the public against over-issues and bank sus pensions. As a collateral andeventual security, it is doubtless wise, and in nil cases ought to be J-cqaircd, that banks shall hold an amount of United States or State securities equal to their notes in circulation, and pledged for their re demption. This, however; furnishes no ade quate security against over-issues. On the contrary; it may. bo perverted to inflate the cur rency. Indeed, it is possible by this means to convert all the debts of the United S'ates and State Governments into bank notes, without re ference to the specie required to redeem them. However valuable these .securities may bo in themselves, they cannot be converted into gold and silver at the moment of pressure,'as our experience teaches, in sufficient time to prevent . bank suspensions and the depreciation of bank ■notes, In England, which is to a considerable extent a paper-money 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 bn hand gold and sil ver equal to one-third of its combined circula. tion and deposits. 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, ns a field for its circulation; rendering it almost impossible that a sudden and immediate run to a dangerous amount should be madcupon it, the same .proportion would certainly be insuffi cient under our banking system. Each of our fourteen hundred banks has but a limited cir cumference.for its circulation, and in the course of a very few days the depositors and note-hold ers might demand from such, a bank a suffi cient amount in specie to compel it to suspend, even although it bad 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 deposits. What 9 BY JOHN B. BRATTON. 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 theirdeposits $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. pared with their circulation and deposits. 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 tru ly 1 wonderful'that they should have so long con tinued to preserve "their credit, When a demand for the payment of one-seventh of their imme diate liabilities would have driven them in o in solvency- And this is the condition of the banks, notwithstanding that four hundred mil-' lions of gold from-California have flowed in up on us within the last eight , years, and the tide still continues to flow. Indeed, suph 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 deposits .combined, than they did before the discovery of gold in California. Whilst in. the year Igtyjl their specie in proper-, tion to their capital was more than equal to one dollar for four and a half, in 1i847-it does not amount to one dollar for every six dbllars 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 their circulation and deposits,; in 1857 it is not equal to one .dollar in seven and a half of, their circulation and deposits. : . , 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 ru inous contractions. At Successive-intej-vals the best and most enterprising men have .been tempted to their ruin by excessive bank loans of mere paper credit, exciting them to extrava gant importations of foreign goods., wild sepec ulatinns. and ruinous and demoralizing stock gambling. When the crisis arrives, as arrive it must, the banks can extend no relief to the ■people. In a vain struggle to redeem their lia bilities in specie, they are compelled to contract their loans and their issues : and at litst. 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 cx- : pension, raising the nominal price of eve ry article far ibeyond its real value, when, compared.with : the cost of similar articles in conntries-whose circulation is wisely regulated, which has prevented us from competing in our own markets with foreign manufacturers, has produced extravagant importations, and has counteracted the effect of the large incidental protection afforded to our domestic manufac turers; by the revenue tariff. But for thhCv-.U '-'branches ofourmannfaetur es composed of raw .materials, the production of onr otyn country—such as cottOn. iibn. andj woollen;fabrics—would not only have acquired; almost exclusive possession of the home- mat .ket, 4ni t .would Jia.yciccoaied-?fimvlhtmsel vqs-dt foreign riiarket throughout the world. : Deplorable, however, as may be our present financial condition, wo may ,yet indulge in bright hopes for the future. ’ No other nation lias.ever existed which could have endured such violent expansions of paper credi’S without lasting injury,; yet the buoyan cy of youth, tlie energies of qur population, and the spirit which never quails before difficulties, will enable us soon to recover from our present financt.il embarrassment, and may even occa sion us speedily to forget the lesson which they have taught. In the meantime it is the duty of the Gov ernment, by. all proper means wi'hin 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,da cither aspect of the case, it can do but little. Thinks to the In dependent Treasury, the Government has not suspended payment, as it was compelled to do by the failure of the banks in 1837. It will continue to discharge'its liabilities to the peo ple in gold and silver. Its disbursements in coin will pass into circulation,-'and.materially, assist in restoring a sound currency. : From J is high credit, should we be compelled to make a temporary loan, it can be effected on advanta geous terms. This, however, shall,'if possible, be avoided ; but, if not, then the amount shall be limited to the lowest practicable sum- have no right to doubt the sincerity of the I have, therefore, determined that whilst no British Government in their construction of useful Government works already in progress the treaty, it is at the same lime my deliberate, shall be suspended, new works, not already conviction that this construction is hvopposhion commenced, will bo posponed, if this can be both to its letter and its spirit, done Without, injury to the country. Those Under the late- administration negotiations -necessary Tor its defence shall proceed as though were instituted between the two Governments there had been no crisis in ourmonetary affairs, for the purpose, if possible, of removing these —•But the Federal Government cannot do much difficulties; and a treaty having this laudable to provide against a recurrence of existing object in view was signed.at London on the 17th evils. Even if insurmountable constitutional October, 1850, and was submitted by the Prosi. objeotiofis did not exist against the creation of dent to the Senate on the following 10th Docem a National Bank, this Would furnish no ade- b « r - Whether this treaty,-either in its original quato preventive security'. Thejhisiory of, the °F .amended form, would have accomplished the lasTTßank of the Uniled States abundantly object intended without giving; birth to new and proves the truth of tHiA assertidu. I eStoK bank con d not ,f it would regu'ate the issues Certain it lB ho * olver> 0 l ver> g was rendered much and credits of fourteen hundred State banks, , esg objectionably b y (be' different amendments m such a manner as to prevent ine ruinous ex- to it b£ the Senate. The treaty, as amend pansions and contractions in our currency, e d, waif ratified by mo on the 12th March, 1857, which afflicted the country throughout the c£. and was transmitted to Loridon for ratidcatioU istence of the late bank; (insecure us against fu- by the British Government. That Government tore suspensions. In 1825, an effort was made expressed its. willingness to concur in all tho by the Bahk of England ti curtail the issues of amendments made by the Senate with the single the amihlry banks under the most favorable exception of the clause relating to :Rnatan and circumstances. The paper currency had been the other-islands fn tho Bay of Honduras. The expanded to a ruinous extent, and the bank article in the original treaty,as submitted foth'o' put forth all its power to contract it in order to Senate, after reciting that those islands and their reduce prices,: and-restore the equilibrium of inhabitants “having boon by a convention Bear tho foreign exchanges. It according! v com- in S date the 27th day of August, 1856, between merioed a system of curtailment of its loans her Britannic Majesty and (ho Republic of Hon nnd issues', in the- vain hope - that the joint d liras, constituted and declared a free territory stock and private banks of the kingdom would ~nlJor tlle soycroigntyof the said Republic of be compelled to follow its examnle ' It found Hon(lllra9 ” stipulated that tho «two contracting however, that as.it contracted they expahdbd’ pa^ tieB do hereby mutually engage to recognise and at-theend of the process, to emplbv the and . r F?P ect ■" a » fll ' ur , e <'™° "'° independence language of a very high official Zhoritv «nd rights of the said (roe territory as a part of “whatever reduciion of the paper circulation ‘ ‘« Rc PUbhc of Hondmas. _ was effected by the Bamc of England (in 18251 * an examination of this convention-ho was more than made up by the issues of the ain r v t', country banks.” ' - C 1856 it was found that, whilst declar • ti.v* n _ ,v ' !n 6 tho Bay Islands to bo «a free territory un *r w . t d would e n ?*\ der *be sovereignty of tho Republic of Hondu- JP* °t> i r^ trfl,n issues and loans of the raa,”. it deprived that Republic of rights without otatc Banks, because its duty as a regulator x>f • which its sovereignty over them' could scarcely the currency must often be in direct conflict I bo. said to exist.. It divided them from tho ro with tho immediate interest of its stockholders. J maindor of Honduras; and gave to their inhabi- If wo expect one agent to restrain or control tarns a separate Government of their own, with another, their interest-must, at least in some legislative, oxo'cufivo, and judicial officers, elec degreo, be antagonistic. But tho directors of a ted by themselves. It deprived the Government Bank of the United States would feel the same nfjlnndnras of the faxing power in every form, interest and the same inclination with the di- j ar| d exempted the popple of the islands from the rectors of the State Banks to expand the cup- PoUormnnco of military duty except for thoir renoy. to accomodate their favorites and friends f n ° dofe " col ' It «l»o prohibited that with loans and to deelnro In,-™ rli„;,l,.nrla Republic from erecting fortifications upon them S ■ A- g dividends.— for their protection—thus leaving (hem open to last bank been ° Uroxperlenc6ln rogard t 0 tIC invasion from any quarter; and, finally, it pro. , , . i vidod “that slavery shall not at any time horq. After all we must mainly rely upon tho pa- after bo permitted to exist themin'.” ■ ■ n tat T S r\? r thC -,r ,r T Had Honduras ratified this convention, she „ virf ? K 1)0 r' If they Wl .' af " ' vou| d have ratified the establishment of a State lord us a real specie basis, for our paper tnrcu- substantially independent within her own limits, , lation by increasing,the denomination, of bank and'a State at all times subject to British inffu- i notes, first to twenty* and afterwards to fifty once and' control'. Moreover, had' the United , dollars; it they will require that the banks States ratified the treaty with Great Britain in | VOL. 44. | shall at all times keep on hand at least one dollar of gold and silver for every three dollars of their circulation and deposits; and if they will provide by. a self-executing enactment, which nothing 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 condiiionrwould go far to. secure us against future suspensions of specie payments. Congress, in my opinion, possess the power to pass a uniform bankrupt law applicable to all banking institutions throughout the United States, and t 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. man ner 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 •onr people, that they, cannot at this day be abolished without much immediate injury to the country.. If we could confine them id 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 will) ad vantage to the public. But this I say, after long and tnuch reflec tion: if experience prove it to be impossible to enjoy the facilities which well-regulated banks might afford, without at the same time suffer ing the calamities which; the excesses of the banks have hitherto inflicted upon the country, it would then be far the lesser evT to deprive them altogether of, the power to. issue a paper Currency, and confine them- to the functions of banks of deposit 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 termina ted.by the appointment of a British minister to this country, who has been. cordially receiv ed. .. ‘ Whilst H is greatly, to the ■ interest, as I am convinced it. is the sincere desire, of the Gov ernments and people of. the .two countries, to be omlerms, of intimate friendship with each .other, it has been pur. misfortune almost al ways to have had some: irritating, if not dan gerous, outstanding question with Great Brit ain. Since ihe origin of .the Government we have beeq employed in negotiating treaties wnh.ihat Power, and afterwards in.discussing their true intent and meaning.) 'dri, this respect, the 'con vention. of April 19, 1850, commonly called the Clayton and Biilwer. treaty-has bteri the most nnfortunate’of all: because the two Gov ernments place directlyiopposile and contradic tory, cohstructiohs.npbmits first and most im portant article. Whilst, in the United States, we believed that this treaty would place both Powerawpon an exact equality by the “tiimila ljnn 'hjlt neither wilt, over “occupy, or fo'-li “ or colonize, or asshme or exercise any do Stiitth’. l , over, any- part; dfjCentriil, America,, tha, the true construction of: this, language has left Ihdm in the rightful possession of all that por tion of Centra I America which wnsih their'oe cupancy ai. the date of thcitrcaty : in, fact, that the treaty is a virtual recognition on the part of the United States, of the right of real Britain, cither as oVner or protector, to the .whole, ex tensive const of Central America, sweeping round from the Eio Hondo to the port and har bor of San Juan de Nicaragua, together with the Adjacent Bay Islands, except the compara tively. Small portion of this between the Sars toonrand Cape Honduras. According to their construction, the- treaty docs ilo more than ’simply prohibit them from extending their pos- Central America beyond the present limits ”It is not too much to assert, that if in the United Slates the treaty had been consider 1 sd susceptible of such aconstruction.it never would have been negotiated under the author!- ty of the President, nor would it have received the approbation of the Senate. The universal conviction in the United Slates was. that when our Government consented, to violate its tra ditional and time-honored policy, and to stipu. late with a foreign Government never to occu py or acquire territory iiv the Central Ameri can portion of our Continent, the. considera tion for this sacrifice was. that Great Britain should, in this respect at least, be placed in thesame position with ourselves. Whilst we —MAi ii ALWAYS BE RIGHT—BUT RIGHT OR WRONG, OUR COUNTRY.” “OUR COUNTRY- CARLISLE, PA., THURSDAY, DECEMBER 17,1857; its original form, we shouldliavo been bound to “ recognise and respect in nil future time?’ those stipulations to the prejudice.ot Honduras. Be.- ing in direct opposition to the spirit and mean ing of the Clayton Bulwer' treaty ns understood iu the United States, the Senate rejected the entire clause, and substituted in its stead a sim ple recognition of the sovereign right of Hondu. ras to these islands in the following language : ‘• The two contracting parties do hereby mutu ally engage to recognise and',respect the islands of Ruatan, Bonnco, Utiln, Barbarotta, Helena, and Morat, situate in the Bay of Honduras, and off' the coast of the Republic of Honduras, ns under the soveroigntywna as part of the said Republic of Honduras.'” . Great Britain rejected this amendment, assign ing as the only reason, that the ratificalions of; flic convention of the 27th August, 1850, bo. tween-hor and Honduras, had- not boon “ 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 imagreeing to th^.niodificatlonpro posed by the Senate, wiiictil then would have had in effect the same signification as the origi. nal.wording.” Whether tbisftronld have been the effect; whether the niercVcircnmstance of the exchange of the ratifications of the British convention with Honduras prior in point of time to the ratification of our treaty with Groat Bri tain would, “in effect,” have had “the same sig nification ns the original wording,”.and thus have, nullified the amendment of the Senate, may well bo doubted. It is, perhaps, fortunate that the question has never arisen/, ■ The British Government, immediately after rejecting the treaty ns amended', proposed to en ter into a new treaty with the' United States, similar, in'all respects, to the treaty which they bad, just refused to ratify; if fife United States would consent to add to the Senate’s clear and unqualified recognition of thB sovereignty of Honduras over tho Bay Islands, the following conditional stipulation: “ Wbefevor and so soon as the Republic of Honduras shall have conclu ded and ratified a treaty with Great Britain, by which Great Britain shall have ceded, and the’ Republic of, Honduras shall accepted, the said islands, subject to the provisions and con ditions contained in such treaty;.” This proposition was, of course, rejected.— After the Senate had rofnsed.fp recognise the British convention with Honduras of the 27th August, 1856, with full knowledge of its con tents, it was impossible , for me; necessarily ig norant of the “ provisions and conditions” which might be contained in a future conven tion between the same parties, tp sanction them in advance. ■ The fact is, that when- two tytjions like Great Britain and the United States, mutually desir ous as they- are, and I trust ever may he, of maintaininglhemost fripndly relations with each other, have unfortunately concluded a treaty which they understand tn sensesdirectly oppo site, the wisest .course is to abrogate *Blloll a treaty by mutual consent,nndJ ! fo commence anew. Had this beendono promptly, all diffi culties inGentral America would'most probably ore this have been adjusted to the satisfaction of both parties. The time spen| in diSctisding the meaning of the Claytoh an3\Bul\ver treaty would have been’ devoted to thij praiseworthy purpose, and the task, would havejbcen tlio move easily accomplished because the |i\t©rest of-the ,two countries in Central Amcfljyais identical,. tfio routes across the Isthmus.?' i • -•. 7 .. ; ■ • ■Whilst entertaining those ’ sen tub on ts, X shall novertholossriot.rcfnso to cbntrfbuleto aby rea sonable ' adjnsfmodt of fbb .•Central American questions Which is not practically.inconsistent with the American interpretation of the treaty. Overtures for this purpose have been recently 1 made by the British Government in a friendly • spirit, which I cordially refioprocato j but whe ther this renewed effort will result in success I am not prepared to express an opinion. A brio! period will determine. ■ With Franci our ancient relation's of , friend, ship still continue to exist. The French Gov ernment have, in several 'recent instances which need not be enumerated, evjnccd a spirit of good will and.kindness towards oflr dbunfry which I heartily reciprocate. It is, notwithstanding, i much to bo regretted that two nations whose I productions are of such a character as to invito the most extensive exchanges and freest com mercial intercourse, should continue to enforce andieht and obsolete restrictions of frado against each other. . Our commercial treaty with Franco is in tin's respect an exception from our treaties with all other commercial nations. It jealously levies discriminating duties both on tonnage tfnd bn articles, the growth, produce, or manufac ture of the one country, when arriving in Ves sels belonging to the other, . More than forty years ago 7 , oh tho Sd itfarcfi, .1815, Congress passed an, act offering to all na- lions to admit their vessels laden with their na- tional jroductiohs'into the ports of the United Stales upon the same terras with our own ves sels, provided they would reciprocate to us sim ilar advantages. This aefoopfinod reciprocity to the productions of the respective, foreign na tions who might enter into the proposed arrange, ment with the United States. The act of May 24, 1828, removed this restriction, and offered a similar reciprocity to all such vessels without reference to the origin of their carg< es. Upon these principles, our commercial treaties and arrangements have been founded, except Willi Prance; and let us hope that this exception may not long exist. ' Our relations with Russia remain, as they have ever boon, on the most friendly footing. The present Emperor, as well ns his predecessors, have never failed, when the occasion offered, to manifest their good will to our country; and their friendship has always been highly appre ciated by the Government and people of the United States. ... With all other European Govormuenls, ex cept that of Spain, our relations are as peaceful aS wo could desire. I regret to say that no pro gress whatever has-been made, since the ad journment 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 Forrolana On the high seas, off the the coast of Cuba, in March, 1855, by firing into | the American mail steamer El Dorado, and do. ’ (aining and searching lier, remains unacknovy • lodged and unredressed, The general tone and temper of the Spanish Government Towards that of the l/nifed States are much to bo regretted. : Onr present envoy extraordinary and minister • plenipotentiary to Madrid has asked to bo re. called; and it is my purpose to send out a now minister to Spain, with special instructions on atl questions ponding between the two govern ments, and witli a determination to have them speedily and amicably adjusted, if this bo possi bio. In the meantime, whenever onr minister urges fho just claims of our citizens on the no lice of the Spanish' government, ho is mot with the objection that Congress have never made the appropriation recommended by President Polk in his annual message of December, 1847, «to bo paid to the Spanish government tor the purpose of distribution among tho claimants in the Amistad case.” A similarrocommondation was made by.my immediate predecessor in. his message of December, 1853; and entirely con earring with both in tho opinion that this in demnity is justly duo under the treaty witli Spain of-tho 27th October, 1793,1 earnestly re commend such an appropriation to tlio favora hie consideration of Congress. A treaty of friendship and commerce was concluded at C.onstantinoplo on tho 13th Dot comber, 1856, between tho United States and Persia, the ratifications of which wore exchang ed at Constantinople on tho 18th of June, 1857, and tho treaty was proclaimed by the President on tlio 18tli August, 1857. This treaty, it is believed, will prove bonollcial to American Commerce. The Shall lias manifested,an earli est disposition to cultivate friendly rotation's with • our country, and has expressed ft strong wish that wo should be represented at Teheran by a minister plenipotentiary; and I recommend that an appropriation he made for this purpose. Recent occurrences in China have,been unfa vorable to areyision of the treaty with that cm-, pire of the 3d July, 1844, with a view to the ' security and extontion of our commerce. -The. 24th article of this treaty stipulated for a-revis ion of it, in case experience should prove this to be requisite; “in which case the two Gov ernments will, at the expiration of twelve years from the dateof saidconyqntion, treat amicably concerning the same, by means of suitable, per sons appointed to conduct such negotiations. ” These twelve years expired on the 8d July, 1856; but long.boforo that period it was ascer tained that important changes in the treaty were necessary ; and several fruitless attempts wore made-by the commissioner of.the United States to effect these changes. Another effort was about to bo made for the same purpose by our commissioner, in conjunction with the niin isters of England and France; but this was suspended by the ‘occurrence of hostilities in the Canton river between Great Britain and the Chinese Empire. „ Those hostilities have neces sarily interrupted the trade of all nations with Canton which is now in a state of blockade, and have occasioned a serious loss of life and prop erty.' Meanwhile, the insurrection within the empire against the existing imperial dynasty still continues, and it is difficult to anticipate [ what will be the result. Under these circumstances ! have deemed it advisable to appoint a distinguished citizen of Pennsylvania envoy extraordinary and minister plenipotontiary'to proceed to China, and to avail himself of any'opportunities, which may offerto ; effect changes in the existing treaty favorable to American commerce. He left the United States for tho place, of his destination in July last in the war steamer Minnesota. Special" 1 ministers to China have also been appointed by. tho Governments of Great Britain and France. Whilst our minister has been instructed to oc cupy a neutral, position in reference to the ex isting hostilities at Canton, ho will cordially co operate with tho British and French Ministers in all peaceful measures to secure by treaty stipulations, Ihosejust concessions to commerce which the nations of the world have a right to. expect, and which China cannot long bo per-, milted to withhold. From assurances received, I entertain no doubt that the three ministers Will act in harmonious concert to obtain similar . commercial treaties foreach of the Powers they represent. . , • Wo cannot fail to feel a, deep interest in all that concerns the welfare of tho independent Republics on our own continent, as well of the empire of Brazil. Our difficulties With New Grenada, which a short time since bqre so threatening an aspect, are, it is to bo hoped, in a fair train of settle ment, in a manner just and honorable to both parties. . • Tho Isthmus of Central Amoiica, including that of Panama, is the groat highway between tho Atlantic and .Pacific, over which a largo portion of the commerce of tho world is destin ed to pass.. The United States are more deep ly interested than any other nation in pres'erv ; .ing.jh.q jreodom,.and;pecnUty f . < >.r,.ftU.i.hq .commit! wo Isthmus.' It is bur' ditty; therefore, to take care that theyshall not hein- 1 terriipted,' either "by invasions from pur own; country or wars between the indepondant States of Central America. Under bur treaty with New Grenada of the 12th December, 1846, we. are bound to guaranty tho neutrality of the, Isthmus of Panama, through which the Panama Railroad passes, “as well ns the rights of sove reignty and property which New Grenada has and possesses over the , said territory. 55 This obligation Is founded upon equivalents granted by the treaty to the Government and people Of the United States. • Under those circumstances, X recommend to Congress the passage of an act authorizing the President, in cas.o of necessity, to employ the .land and.naVal forcos of the United States .to carry info .effect this guarantee of botftrality and protection. I also recommend similar leg- islation for the security of any other route across the Isthmus in which wo may acquire an inter est by treaty. With the independent Republics on fhia c'ofi- tinent it Is both ouf duty and ourintcrosttocul tivatethe most friendly relations. We can nev er fool indifferent to their fate, and must always rejoice in their prosperity. Unfortunately, both' for them and for us, our example and ad vice have lost much of their influence in conse quence of the. lawless expeditions which have been fitted out against some of them within (he limits of our country. Nothing is better calcu lated to retard oiir steady material progress, or impair ofir ebaraefef ad a nation, than the toler ation of such enterprises in violation of the fuW of nations. - ' , It is one of the first and highest duties of any independent State, in its relations with the members of (bo groat family iff nations, to re strain its people from acts of hostile aggression against tboif citizens or subjects- The most eminent writers on public law do not hesitate to denounce such hostile acts as robbery and murder, . . , Weak arid feeble States, like those of Central America, may. not feolthomselvesable to assert and vindicate their rights. The case would be tar different if expeditions wore set on loot within our own tprrito r ics to make private war against a powerful nation. If such expeditions wore (/(fed out from abroad against any portion of our own country, to burn down our cities, murder and plunder our people, arid usurp our Government, wo shriuld call any potter on earth to the strictest account for not preventing such enormities. Ever since the administration of General Washington, Acts of Congress have beeri'in force to prinish severely'<ho crime of Setting ofri loot a military expedition within the limits of the United States, to proceed from thence against a nation or State with whom wo are at peace. The present neutrality act of April 20lh, 1818, is but little'more than a collection of pre-exist ing laws, Under this act the President is em powered to employ' the land and naval forces and the militia “for the purpose of preventing the carrying on of any such expedition of efi terprise froni the territories and Jurisdiction of the United States, ” and the' collectors of cus toms afo 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 at tempt would bo made to get up another unlawful expedition against Nicaragua, the Secretary 61 State issued instructions to the marshalls and district attorneys, which wore directed by the Secretaries of War and the Navy, to the appro priate army and navy officers, requiring them to bo vigilant, and to use their best exertions in, I carrying info effect the provisions of ihe act ol 1818. Notwithstanding these precautions, the expedition has escaped from our shores. Such enterprises can do no possible good to the coun try, but have already inflicted much injury both on its interest and its character. They have prevented peaceful emigration from the United States to the States of Central America, which could not fall to prove highly beneficial to alll the parties concerned. In a pecuniary point o view alone, our citizens have sustained heavy losses from the seizure and closing of the tran : ait route by the San Juan between the two oceans. ■ i Tho loader of tho recent expedition was or rested at New Orleans, but was discharged on giving bail for his appearance in the insufficient sum of two thousand dollars. I commend tho whole subject to tho serious AT $2,00 PER ANNUiI attention of Congress, believing that our duty and out - interest, as well as oitf national charac- I ter, require that wo should adopt such measures aswilj bo.effectual in restraining our citizens frotn commiting Snch ohtrages; . 1 regret to inform you that the President of Paraguay has refused to ratify the treaty be tween the United States and that State ns amended by the Senate, the signature of whiclj I was mentioned in.the message ot my predeces sor, to Congress, at the opening of its session in December; 1858; Tliq reasbns assigned for this refusal jirfll appear in the correspondence here with submitted, - • It being desirable to ascertain the fitness of the river La Plata and its tributaries for naviga tion by steam, the United States steamer Water Witch was sent thither for that.purpo.sain 1858. This enterprise was successfully carried on un til February, 1855, when, whilst in the peaceful prosecution of her voyage up the Parana river, the steamer was' fired upon by a Paraguayan I fort. . The fire was returned! but as the Wafer Witch was of small force, and not designed for offensive operations, she retired from the con flict. ' The pretext, upon which the: attach was. made was a,decree of the President of Para guay of October, 1854, prohibiting foreign vos sels-of-war from navigating (he rivers of that State. As Paraguay, however, was the owner of but one bank of the river of that flame, the other belonging to Corriontes, a State of the Argentine confederation, the right of its gov ernment to expect that such a decree would bo obeyed cannot bo acknowledged. But the Wat- ' er Witch was not, properly speaking, a'vcssel- , of-war. She was a small steamer engaged in n scientific enterprise intended for the advantage of commercial States generally. Under these circnmstaffoes, lam constrained to consider the ' attack upon her as unjustifiable, and as calling for satisfaction from the Paragrayan. govern- : ment: Citizens of the United States, also, who were established in business in Paraguay, have had their property seized and taken from them, and have otherwise been treated by the authorities in an insulting and arbitrary manner, which re quires redress. A. demand for these purposes will be made in firni but conciliatory spirit. This will the more probably bo granted if the 'Executive .shall have authority to use other moans in the event of a refusal. This is accordingly recommended. ■lt .is unnecessary to state in detail the’alarm ing condition: of the Territory of Kansas at the time of my iuaugiifation. The opposing parties then stood in hostile array against each other, aqd any accident might have relighted the flames of civil wnri- Besides, at this critical moment, Kansas was left without a Governor by the re. sigination of Gov. Geary. On the 18th of February previous, the Terri torial Legislature had passed a law providlng for the election of delegates on the 8d Monday of June to a convention to meet on the first Monday of September, for the purpose of.trara ing a constitution preparatory to admission into, the Union, This law was in the fnain fair and just; and it is to bo regretted that all the quali- Hod electors had not registered themselves and voted under its provisions, At the time of the election of delegates, an extensive organization existed in the Territory, whoso avowed object it whs, if need be, to put down tho. lawiql government by force, and to ; establish q go,vernroefttttt:#licit jpwn. iradcr:tbo. so-called. Topeka constitution. The persons at tached' to this revolutionary organization ab stained from taking any part in, the election; .The act of the Territorial Legislature bad, omitted to provide for submitting to the people -the Constitution which might be framed by the Convention ; and in fbe,excited state of public feeling .throughout Kansas an apprehension ex tensively prevailed that a design existed to lofco upon them a Constitution in relation to slavery against their will. In this emergency it became my duty, as it was my unquestionable right, having in,view- the union ot all good citizehs irt support of the territorial laws, to express an opinion on the true construction of the provi sions concornlng slavery contained in the orga nic act Of Congress of the 88th May, 1864. Congress declared it fo bo“‘the true intent and meanitig of this act not to legislate slavery into any Territory or State, nor to exclude it there from, Imt to leave the people thereof perfectly free to form and regulate their domestic institu tions in thfeir own way.” Under it Kansas^ ‘‘ when admitted as a State/’ was to “ bo recei ved inlh (ho Union,'with or without slavery, as (heir Constitution may prescribe at tho time of their admission.” Did Congress medn by this language that the delegates elected to frame a Constitution should have authority finally lo decide the question of slavery ? or did they intend, by leaving it to the people, that ihe people of Kan sas themselves should decide this question by a cliH'Ct vote ? On this subject I confess I had never entertained a serious dpubt, and. there fore. in my instructions to Governor Walker, of the 28th March last, I merely said that when vl -a 'Constitution shall be submitted to Ihe peo ple of the Territory, they rririsi. bo protected In the exercise of their right of voting for or against thflt instrument, and the fair expression of the popular will must not be interrupted by fraud or violence.” In expressing ibis opinion, it was far from iny intention to interfere with the dccision.of the people Of Kansas, cithcri for or against slavery. From this I have always carefully abstained. — Intrusle.d with the-duty of. taking “ care that the laws be faithfully' executed," my Only, desire was, that the people of Kansas should furnish to Congress the evidence required by the organ ic act, whether fbr or rigalttst Shivery ; and,.in this ioannerj Smooth thetr passage into the Un ion. In emerging from the condition of territo rial dependence into that of a sovereign State, it was their duty, in my opinion, to make known their will by the Votes of the majority; on the direct qucstitfn whether this important domestic institution should itr should not con- tinue to exist. Indeed, this wns the Only possi ble mode in which their will could be outhenti' cally nseetained. The election of delegates to a Convention must necessarily take place in separate dis- tricts. From this cause it may readily happen, as has often been the case,- that a majority of the people of a State or Territory are on one side of a question, whilst a majority of the re presentatives from the several districts into which it is divided may be upon the other side. This arises from the fact that in some districts delegates may bo elected by small majorities, whilst in others those of different sentiments may receive majorities sufficiently great not on ly to overcome the votes given for the former, but to leave a large majority of the whole peo ple in direct opposition to a majority of the del egates. Besides, our history proves that influ ences may be brought to bear on the represen tative sufficiently powerful to induce him to disregard the will of his constituents.' The truth is, that no other authentic and satisfaoto-' ry mode exists of ascertaining the will of a majority qf the people of any State or Territory on any important and exciting question like that of slavery in Kansas, except by leaving..it to a direct vote. Ifinv wise,.then, was it for Congress to pass over all subordinate and ruler mediate agencies and proceed directly to the source of all legitimate power under our insti tutions! How vain would any other principle prove in praciice ! This may bo illustrated by the case of Kansas. Should she bo admitted into the. Union, with a Constitution cither maintaining or abolishing slavery, against the sentiment of the people, this could have no other cflecl than to continue anti, to osaspcrdlc the cxisting.agi talibn during the brief period required to rfulkti the Constilution conform to the irresistible will of the majority. , •. • The frifcnds and SupfitirtCrS Of. the Nebraska and Kansas act, when struggling oil ft recent occasion to sustain itd.wiSe provisions before the great tribunal of the American people, ne ver differed about its true meaning on this sub ject. Everywhere throughout thb Union they publicly pledged' their faith and their hono 1- . • that they would cheerfully submit the question - °f slavery to the decision of the bona fide peo ple of Kansas, without any.restriction orqual ification whatever., All word cordially united upon the great doctrine of popular sovereignly, : Whidn is tile vital principle of bur free institu tions. , Had it, then been insinuated from any quarter that it would- be a sufficient compliance with the requisitions of (lie organic law for the . members of a Conventioti; thereafter to bo elec ted, to withhold the question of slavery from ! the people, and tb substitute their own will for ' that of it legally-ascertained majority of ail 1 their constituents, this would have.been in: 1 slanlly rejected- Everywhere thty remained - true to the resolution adopted on a celebrated occasion recognizing "the right of the people of all the Territories—including Kansas a.fid Ne braska—acting through the legally anil fairly-- ’ expressed will of it majority of actual residents; and whenever the number of their inhabitants justifies it, to form a Constitution, with dr Without slaVery, and admitted into the, Unibh upon terras of perfect equality with, the other States.” , ■ 1 This Convention to frame a Constitution for Kansas met on the first Slondaj' of September last! They Were called together by virtue df an act of. the Territorial Legislature, whosO . lawful existence had been recognized by Con gress in different forms and by different enact} ments. A largo proportion of llic, citizens bi Kansas did not think proper tb register, their - names and to vole at the election for delegates: but an opportunity to do this having been fair-, ly afforded, their refusal to avail themSelvts of their right could in no manner affect thc-fegali ty of the Convention. - . ’ The Convention proceeded to frame a Con stitution for Kansas, and finally adjourned.oh the 7th day of November. But little difficulty occurred in the Convention, except on the sub-, jeet of slavery. The truth is that the general , provisions of Our rodent State .Constitutions are so similar—and, I may add, so excellent—- that the difference between them-is not essen tial. Under the earlier practice of the Gov ernment, no Constitution framed by the Con- . vcillion of a Territory preparatory to,its ad- . mission into the Union as a State had been sub mitted to the people. 1 trust, however, life example set by the last Congress, requiring, that the Constitution of Minnesota ‘.‘should be' ftO. 27. subject to the approval and ratification of the peoplrof the proposed State,” may be followed on future occasions. I took it for granted thdt the Convention of Kansas woiild act irt accord ance with this example, founded.'as if is, oh’ correct principles ; and hence my instructions to Governor Walker, in favor of submitting the’ Constitution to the people, were ckpfeSsed iff general and unqualified terms.' In Ihe-ICansas-Nebraska act, .howevtr, this requirement, as" applicable to the whole Consti tution, had not been inserted, and the Con vention were not bound by its terms to submit any other portion of the instrument to'an elec tion, except that which relates to the "domes tic institution" of slavery* This Will be render ed clear by a simple reference to, its language* It was "not to legislate slavery into any terri tory or Slate; nor lb exclude it therfefrom. biit to leave the people thereof perfectly free to foriii and regulate their domestic institutions in their own way.” According to the, pinin’cbnStrucV lion of Inb sentence, the , words "drtmes(ic in stitutions" have a direct as they have an ap propriate,reference to slavery. “Ilomestic; in stitutions,” are limited to the family.; The re lation between master and slave and a fcW oth ers are "domestic institutions," and are entire ly distinct from institutions of a political char ; nclcr. Besides, there was nO~qumiofr thWhe'- fore Congress, nor indeed has there since been any serious question before (hc_.people of Kan sas or the country, except that which relates 10 the “domestic institution" of slavery. The Contention, after an angry and ■ exoilea. debate, finally determined, by a majority Of only two,' to submit the question, of slavery tO the people, though at the last forty-three of the fifty delegates present affixed their signatures to the Constitution. , A large majority of the Convention were hi favbr of establishing slavery "in Kansas. They accordingly inserted an article in the Con stitution for this purpose similar in form to those which had boon adopted by other Terri to- , rial Conventions. In the'schedule,: bowovO'r, providing for the transition from a Territorial to a State Government, the question .has been, fairly and explicitly referred to the people, ' whether they, will ImVe a Constitution ."with or without slavery.” It declares that, be fore the Constitution adopted by the Conven tion “shall be sent to Congress for admission : into thc.Union ns a State," an election shall be held to decide this <JUes.ti(>if, at tvhfch all thfi (vhitc male inhabitants of the Territory above the age of 21 are entitled to vote. They are to vote by ballot; and ‘'the ballots cast at Said election sliall bO endorsed ‘Constitution with slavery,’ and ‘Constitution With po slavery'.’ ”, It there he a majority in faVor of the “Consti tution with slavery,” then it is to bo transmit ted (0 Congress by the President oftbe Coriveii tion in its original forirf. . If, On the contrary,. there shall be a majority in favor of the “Cnn stitution with no slavery,” then the article pW £ Tiding for slavery Shall be stricken from tho Constitution, by the President of this Convene tion arid it is expressly declared thitt “no slavery shall exist in the State of Kansas, ex cept that tiie right of property in staves now in the Territory shall in no manner be interfer ed with rind in that event it is made his du- ty lo have tho Constitution thus ratified trans- mitlcd to the Congress of the United States for' the admission of the State into the Union. r‘ this election every citizen will have an op portunity of expressing his opinion by his vote, “whether Kansas shall he received into, the Un ion with or without slavery,” and thus this questiorif mtty he. peacefully settled ilt, the very mode required by the organic 'law. The elec tion will be held, under legitimate authority,anti ifany' portion of the inhabitants shall refuse lib vote,, ri fair opportunity’to do so having beef! presented, this will be their own voluntary act, and they’ alone will be responsible fori the cott- sequences. Whether Kansas shall bo a free or a slave Stalt must eventually, tinder SoniC authority, bo decided by an election,; and the question-, can never be more clearly Or distinctly present ed to the people tlian it is at the present mo* meat. 'tjhould this opportunity be rejected,- she indy be involved for years iff domestic dis cord, and possibly in civil war, before she can . again make up the issue-now-, so fortunately tendered, and again reach the point she has al" ready attained. Kansas has for some years occupied too ranch ot the public attention. It is high time this should bo directed to far more important ob jects. When once admitted into the Union,- whether with or without slavery, the excitement beyond her own limits will speedily pass away. and she will then for tho first (imo he left, as she onght to havo been long since, to manage her own affairs in her own way. If her Consti tution on the subject of slavery, or on any othof subject, bo displeasing to a majofity of tho peo ple,,no human power can prevent them from changing it within a brief period. Under those circumstances, it may well be questioned wbe thef the peace aid quiet of the whole cauiltry aro not of greater importance than f(io mere tem porary triumph of either o 1 the political parties in Kansas. Should tho Constitution without slavery hb adopted by tho votes of the majority, tho rights of properly in slaves now in the Territory artf reserved. ’ Tho number of these is very small] but if it were greater tho provision would bet/ equally just and reasonable. These slay ea wefei brought into the Territory under the Constitu tion of iho Unito#Stato9, and are now tho pro. petty of their masters.- Thispoint has.ntlengtK [Concluded on Second Page/) l'
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