-ATT'
AMERICAN _VO LUN TEER.
■ jpODLianED EVERT TUBn|sDAT lIOItNINO BY
Johnß. Bratton.
TERMS'.
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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/)
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