. . .• - . ... . . ' , ~,,,_vtin . .a- . 1. ~,„• . . ' --- - 6 l i kl„ I' . 1.. - : . * .” • . . _te ..:, , '' •, I -. • '- ..L i" t r 1 . 1 ' ~ _ „ ; V. IMO . . ' ' ' OL. IN. PRESIDENT'S MESSAGE Fellow citizens of the Senate and House of Representatives :—The past has been an eventful year, and will be hereafter referred to as a marked epoch in the history of •the world. While we have been happily pre served from thiN2alamities of war, our do mestic prosperity has not been entirely un interrupted. The crops, in portions of the country, have been nearly cut off_ Disease has prevailed to a greater extent than usual, and the sacrifice of human life, through casualities by sea and land, is without a parallel. But the pestilence has swept by, and restored salubrity invites the absent to their,homes, and the return of business to its ordinary channels. If the earth has re warded the labor- of the husbandman less bountifully than in preceeding seasons; it has -left him with abundance for domestic wants, and a large surplus for exportation. In the present, therefore, as in the past, we find ample grounds for reverent thankful ness to-the God of Grace and Providence, for his protecting care and merciful dealings with ue as a people. Although our attention has been arrested by painful interest to passing events, yet our country feels no more than the slight vibrations of the convulsions, which have shaken Europe. As individuals, we cannot repress sympathy with human suffering, hor regret for the causes which produce it. As a nation, we are reminded, that whatever interrupts the peace, or checks the prosperi ty, of any part of Christendom, tends, more or less, to involve our own. The condition of States is not unlike that of individuals.— They are mutualty dependent upon each other. Amicable 'relations between them, and reciprocal good will, are essential for the promotion of whatever is desirable in their moral,social, and political condition.— Hence, it has been my earnest endeavor to maintain peace and friendly intercourse with all nations. The wise theory of this government, so early adopted and steadily pursued, of avoid ing all entangling alliances, has hitherto ex empted it from many complications, in which it would otherwise have become involved. Notwithstanding this, our clearly defined and well-sustained course gf action, and our geographical position so-,rothote from Europe, increasing dispositionhas been manifested, by some of its governments,• to supervise, and, in certain respects to direct, our for eign policy. In plans for adjusting the bal ance of power among themselves, they have assumed to take -us into account, and would constrain us to conform our con duct to their views. One or another of the powers of Europe has, from time to time, undertaken to en force arbitrary regulations, contrary in many respects to established principles of inter national law. That law, the United States - have, in their foreign intercourse, uniformly respected and observed, and they cannot re cognize any such interpolations therein, as the temporary interests of others may sug gest. They do not admit, that the sove reigns ot one continent, or of a particular community of states, can legislate for all others. Leaving the trans-atlantic nations to ad just their political system, in the way they may think best for their common welfare, the independent powers of this continent may well assert the right to be exempt from all annoying interference on their part.— Systematic abstinence from intimate po litical connexion with distant foreign nations, does not conflict with giving the widest range to our foreign commerce. This distinction so clearly marked in histo .ry, seems to have been overlooked, or disrui t garded, by some leading foreign states. Our refusal to be brought within, and subjected to, their peculiar system, has, I fear, created a jealous distrust of our conduct, and indu ced, on their part, occasional acts of dis turbing effeet upon our foreign relations. Our present attitude and past course give assurances, which should not be questioned, that our purposes are not aggressive, nor threatening to•the safety and welfare of oth er nations. Our military establishment, in time of peace, is adapted to maintain exte rior defences, and to preserve order among the aboriginal tribes within the limits of the , Union. Our naval force is intended only for the protection of citizens abroad, and of our commerce, diffused, as it is, over all the seas of the globe. The government of the United States, being essentially pacific in policy, stands prepared to repel invasion by the voluntary service of a patriotic peo ple, and provides-no permanent means of foreign aggression. These considerations should allay all apprehension, that we are disposed to encroach on the rights, or en danger the security of other States. Some European powers have regarded, with disquieting concern, the territorial ex pansion of-the United States. This rapid growth has resulted from the legitimate ex ercise of sovereign rights, belonging alike to all nations, and by many liberally exer cised. Under such circumstances, it could hardly have been expected that those among them, which have, within a comparatively recent period, subdued and absorbed ancient kingdoms, planted their standards on every continent, and ,now possess, or claim the control of, the islands of every ocean as their appropriate domain, would look with unfriendly sentiments upon the 'acquisitions of this country, in every instance honorably obtained; or would feel themselves justified in imputing our advancement to a spirit of aggression or to a passion for political pre domination. Our foreign commerce has reached a magnitude and extent nearly equal to that of the first maratime power of the earth, and exceeding that of any other. .Over this great interest, in which not only our mer chants, but all classes of citizens at least in directly, are concerned, it is the duty of the executive and legislative branclieS of the government to exercise a careful supervis ion, and adopt proper. measures for its pro tection. The policy which I have had in view, in regard to this interest, embraces its future as welLas its present security. Long experience has shown that, in gen eral, when the principal powers of Europe are engaged in war, the rights of neutral nations are endangered. This consideration led, in the progress of the war of our inde pendence, to the formation of the celebrated confederacy of armed neutrality, a primary object of which was, to assert the doctrine, that free ships make free goods, except in the case of articles contraband of war: a doctrine which, from the very corrimence rpent of our national being has been a cher. ished idea of the statesmen of this country. At one period or another, every maratime power has, by some solemn treaty stipula tion, recognized that principle ; and it might have been hoped that it would come to be universally received and respected as a rule of international law. But the refusal of one power prevented this, and in the next great war which ensued, that of the:French revo lution, it failed to be respected among the belligerent States of Europe. Notwithstanding this, the principle is' generally admitted to be a sound and salu tary one; so much so, that, at the commence ment of the existing war in Europe, Great Britain and France announced their purpose to observe it for the present; not, however, as a recognized international right, but as a mere concession for the time being. The co-operation, however, of these two power ful maratime nations in the interest of neu . teal rights, appeared _ to me to afford an oc casion, iaviting and justifying, on the part ef the United States, a renewed effort to male the doctrine in question a principle of international law, by means of special con ventions between the several powers of Europe and America. Accordingly, a prop osition, embracing not only the rule, that free ships make free goods, except contra band articles, but also the less contested one, that neutral property, oth"r than contraband, though on ward enemy's ships. shall be ex empt from confiscation, has been submitted by the iovernment to those of Europe and America. Russia acted promptly in this matter, and a convention was concluded, between that country and the United States, providing for the observance of the principles an nounced, not only •as between themselves, but also as between them and all other na tions, which shall enter into like stipula tions. None of the other powers have as yet taken final action on the subject. lam not aware, however, that any objection to the proposed stipulations has been made; but, on the contrary, they are acknowledged to be essential .to the security ~. )f neutral commerce ; and the only apparent obstacle to their general adoption is in the possibility that it may be encumbered by inadmissible conditions. The King of the Two Sicilies has ex pressed to our Minister at Naples his readi ness to concur in our proposition relative to neutral rights, and to enter into a conven tion on that subject. The King of Prussia entirely approves of the project of a treaty to the same effect, submitted to him, but proposes an additional article providing for the renunciation of pri ivateering. Such an article, for most obvious 'reasons, is much desired by nations having naval establishments, large in proportion to their foreign commerce. If it were adopted as an international rule, the commerce of a nation having comparatively a small naval force, would be very much at the mercy of its enemy, in case of war with a power of decided naval superiority. The bare state ment of the condition in which the United States would be placed, after having surren dered the right to resort to privateers, in the e ent of war with a belligerent of naval supren, cv, will show that this government could neve. 'isten to such a proposition. The navy of the - first maratime power in Europe is at least ten times as large as that of the U. States. The foreign commerce of the two countries is nearly equal, and about equally exposed to hostile depredations. In war between that power and the Uni ted States, without resort on our part to our mercantile marine, the means of our enemy to inflict injury upon our commerce would be tenfold greater than ours-to retaliate.— We could not extricate our eeuntry from this unequal condition, with such an enemy, unless we at once departed from our present peaceful policy, and became a great naval power. Nor would this country be better situated, in war with one of the secondary naval powers. Though the naval disparity would be less, the greater extent, and more exposed condition of our wide spreid com merce, would 4 give 4 any of thein like advan tage over us. The proposition to enter into engagements to forego resort to privateers, in case this country should be forced into war with a great naval power, is not entitled to more favorable con sideration than would be a proposition, to agree not to accept the services of volunteers for operations on land. When the honor or the rights of our country require it to assume a hostile attitude, it confidently relies upon the patriotism of its citizens, not ordinarily devot ed to the military profession, to augment the army and the navy, so as to make them fully adequate to the emergency which calls them into action. The proposal to surrender the right to employ privateers is professedly found ed upon the principle, that private property of unoffending non-combatants though enemies, should be exempt from the ravages of war; but the proposed surrender goes but little way in carrying out that principle, which equally requires that such private property should not Jbe seized or molested by national ships of war. Should the leading powers of Europe concur in proposing, as a rule of internatival law, to ex empt private property, upon the ocean, from seizure by public armed cruisers, as well as by privateers, the United States will readily meet them upon that broad ground. Since the adjournment of Congress, the rat ifications of the treaty between the United States and Great Britain, relative to coast fish eries, and to reciprocal trade with the British North American provinces, have been exchan ged and some of its anticipated advantages are already enjoyed by us, although its full execu tion was to abide certain acts of legislation not yet fully performed. So soon as it was rati fied, Great Britain opened to our commerce the free navigation of the river St. Lawrence, and to our fishermen unmolested access to the shores and bays, from which they had been previously excluded, on the coast of their North American provinces ; in return for which, she asked for the introduction, free of duty, into the ports of the United States, of the fish caught On the same coast by British fishermen. - This being the compensation, stipulated in the treaty, for privileges of the highest impor tance and value to the United States, which were thus voluntarily yielded before it became effective, the request seemed to me to be a rea sonable one ; but it could not be acceded to, from want of authority to suspend our laws im posing duties upon all foreign fish. In the meantime; the Treasury Department issued a regulation, for ascertaining the duties paid or secured by bonds on fish caught on the coasts of the British provinces, and brought to our markets by British subjects, after the fishing grounds had been made fully accessible to the citizens of the United States. I recommend to your favorable consideration a proposition, which will be submitted to you, for authority to 'refund the duties and cancel the bonds thus received. The provinces of Canada and New Brunswick have also antici pated the full operation of the treaty, by leg islative arrangements, respectively, to admit, free of duty, the products of the United States mentioned in the free list of the treaty ; and an arrangement, similar to that regarding Brit ish fish has been made for duties now charge. able on the products of those provinces enu merated in the same free list, and introduced therefrom into the United States; a proposition for refunding which will, in my judgement, be in like manner entitled to your favorable con consideration. There is a difference of opinion between the United States and Great [Britain, as to the boundary line of the Territory of Washington, adjoining the British possessions on the Pacific, which has already led to difficulties on the part of the citizens and local authorities of the two governments. I recommend that provision be made fora commission, to be joined by one on the part of her Britannic Majesty, for the pur pose of running and establishing the line in controversy. Certain stipulations of the third and fourth articles of the treaty concluded by the United States and Great Britain in 18§6, regarding possessory rights of the Hudson's Bay Cordpany, and property of the Puget Sound Agricultural Company, have given rise to se rious disputes, and it Di important to all con cerned, that summary means of settling them amisably should be devised. I have reason to bve, an arrangement can be made on just terms, for the extinguishment otthe rights in question, embracing, also, the right of the Hudson's Bay Company to the navigation of the river Columbia ; and I, therefore, suggest to your consideration, the expediency of making a contingent appropriation for that purpose. France was the early and efficient ally of the United States in their struggle for indepen dence. From that time to the present, with. o l coasional slight interruptions, cordial relations of friendship have existed between the govern ments and people of the two countries. The kindly sentiments, cherished alike by both na tions, have led to an extensive social and com mercial intercourse, which,. I trust, will not be interrupted or checked by any casual event of an apparently unsatisfactory character. The French consul at San Francisco was, not long since, brought into the United States district court at that place, by compulsory process, as A "THAT COUNTRY IS THE MOST PROSPEROUS WHERE LA.I3 t OR COMMANDS TES GREATEST REWAI;D•"-BUCHANAM• CITY OF LANCASTER, TUESDAY MORNING, DECEMBER 12, 1854. • I • a witnessin favor of another foreign consul, in violation, as the, French government conceives, of his privileges under our consular conven tion with France. There being nothing in the transaction which could imply any disrespect to France or its consul, such explanation has been made, as I hope, will be satisfactory. Subsecigntly, misunderstanding arose on the subject of the French government having. ae it appeared, abruptly excluded the Ameri can Minister to Spain from passing through France, on his way from London to Madrid.— But that government has unequivocally disa vowed any design to deny the right of 'transmit to the Minister of the United States ; and, af ter explanations to this effect, he has resumed his journey, and actually returned through France to Spain. I herewith lay before Con gress the correspondence on this subject be tween our envoy at Paris, and tha Minister of Foreign Relations of the French government. The position of our affairs with Spain re mains asiat the close of your last session. In ternal agitation, assuming very nearly the character of political revolution, has recently convulsed that country. The late Ministers were violently expelled front power, and men, of very different views in relation to its inter nal affairs, have succeeded. Since this change, there has been no propitious opportunity to re sume, and press on, negotiations for the ad justment of serious questions of difficulty be tween the Spanish government and the United States. There is reason to believe that our Minister will find the present government more favorably inclined than the preceding to com ply with our just demands, and to make suita ble arrangements for restoring harmony, and preserving peace between the twn countries. Negotiation are pending with Denmark to discontinue the practice of levying tolls on our vessels and their cargoes passing through the Sound. Ido übt doubt that we can claim ex emption therefrom, as a matter of right. It is admitted on all hands, that this exaction is sanctioned, not by the general principles of the law of nations, but only by special conventions, which most of the commercial,hations have en tered into with Denmark. The sth article of our treaty of 1826 with Denmark, provides, that there shall not be paid on the vessels of the United States and their cargoes when pass ing through the Sound, higher duties than those of the must favored nations. This may be regarded as an implied agree ment to submit to the tolls during the contin uance of the treaty, and, consequimily. may embarrass the asertiou of our right to be re leased therefrom There are also other pro visions in the treaty which ought to be modified It was to remain in force fur ten years, and until one year after either party 'lion' I give notice to the other of in nation to terminate it. I deem it expedient that the contemplated notice should be given to the government of Denmark. The naval expedition, despatched about two years since for the purpose of establishing relations with the Empire of Japan, has been ably and skillfully conducted to a successful termination by the officer to whom it was en trusted. A tteaty. opening certain of the ports of that populous country. has been ne gotiated, and in order to give full effect thereto it only remains to exchange ratifications, and adopt requisite commerci 1 regulations The treaty lately concluded bet w‘ en the Uni ted States and Mexico settled some of our most embarrassing difficulties with that country, but numerous claims upon it for wrongs and injuries to our citizens remained unadjusted, and many new cases have been recently added to the former list of grievances. Our legation has been earnest in its endeavors to obtain, from the Mexican government. a Gavot able consideration of these claims, but hitherto without success. This failure is, probably, in some measure, to be ascribed to the disturbed condition of that country. It has been my anxious desire to maintain friendly relations with the Mexican Republic. and to cause its rights and territories to be respected, not only by our citizens, but by foreigners, who have resorted to the United States for the purpose of organizing hostile expeditions against some of the States of that Republic. . . The defenceless condition in which the fron tiers have been left, has stimulated lawless adventurers to embark in these enterprises, and greatly increased the difficulty of euforc ing our obligations of neutrality. Regarding it as my solemn duty to fulfil, efficiently, these obligations, not only towards Mexico, but oth er foreign nations, I have exerted all the Ow ers with which I am invested, to defeat such crimina,l proceedings, and bring to punish. ment those who, by taking a part therein; vi olated our laws. The energy and activity of our civil and military authorities have frus trated the designs of those who meditated ex peditions of this character, except in two in stances. One of these, composed of foreign arc, was at first countenanced and aide.' by the Mexican government itself, it having betu deceived as to their real object The other, small in number, eluded the vigilance of the magistrates at San Francisco, and succeeded n reaching the Mexican territories, but the effective measures taken by this government, compelled the abandonment of the undertak ing. The commission to establish the new line be tween the United States and Mexico. accord ing to the provisions of the treaty o. the 30th of December last, has been organized, and the work is already commenced. Our treaties with the Argentine Confedera don, and with the Republics of Uruguay and Paraguay, secure to us the free navigation of the river La Platte, and some of its larger tri butaries ; but the same success has not atten ded our endeavors kci open the Amazon The reasons in favor of the free use of the. river, I had occasion to present fully, in a former mes sage; and, considering the cordial relations which have long existed between this govern ment and Brazil, it may be expected that pen ding negotiations will, eventually, reach a fa vorable result. Convenient means of transit, between the several parts of the country, are not only de eirable for the objects of commercial and per sonal communication, but essential to its exis teoce under one government. Separated as are the Atlantic and Pacific coasts of the Uni ted States„hy the whole breadth of the conti nent, still the inhabitants of each are closely bound trgether by community of origin and institutions, ane by strong attachment to the Union Hence the canstant and increasing in tercourse, and vast interchange of commercial productions, between these remote divisions of the Republic. At the present time the most practicable and only commodious routes for communication between them are by way of the Isthmus of Central America. It is the du ty of the government to secure these avenues against all danger of interruption In relation to Central America, perplexing questions existed between the United States and G•reat Britain at the time of the cession of California, These, as well as questions which subsequently arose concerning inter oceanic communication across the Isthmus, were, as it was supposed, adjusted by the trea ty of April 19, 1850; but, unfortunately, they have been re opened by a serious misunder standing as to the import of some of its provi sions, a re-adjustment of which is c ,now under consideration Our minister at London has made strenuous efforts to accomplish this deal rable object. but has not yet found it possible to bring the negotiations to a termination As incidental to these questions, I deem it proper to notice an occurrence which happened in Central America, near the close of the last session of Congress. So soon as the necessity wasperceived of establishing inter-oceanic com munications across the Isthmus, a company was organized, under authority of the State of Nicaragua, but composed, for the most part, of citizens of the United States, for the purpose of opening such a transit way, by the river San Juan and Lake Nicaragua, which soon became an eligible and much used route in the trans portation of our citizens and their property be tween the Atlantic and Pacific. Meanwhile, and in anticipation of the completion and im portanoe of this transit way, a number of ad venturers had taken possession of the old Spanish port at the mouth of the river San Juan, in open defiance of thiState or States of Ceiztral America, which, upon becoming in dependent. had rightfully succeeded to the local sovereignty and jurisdiction of Spain, These adienturers undertook to change the name of the place from San Juan del Norte to Greytown, and, though at first pretending to act as the subjects of the Mosquito Indians, they subsequently repudiated -the control of any power whatever, assumed to adopt a dis tinot political organization, and declared them selves an independent sovereign state. If, at some time, a hint hope was entertained that they might become a stable and iespeotuble community, that hope soon vanished They proceeded to assert unfounded claims to civil jurisdiction over Punta Arenns,a i isi tion on the opposite side of the river San in n, which was in possession, under a title whdlly independent of them, of citizens of the Un*ed States, interested in the Nicaragua Transit Company, and which was indispensable nedes nary to the prosperous . operation of this roiute across ~the Isthmus. r..e compaity resi ed their groundless claims; whereupon. they o ceeded to destroy some of its' buildings, nd attempted violently to dispossess it. At a later period they organized a str ng force for the purpose of demolishing the est b lishment at Punta Arenas, but this' mischie•• ous design was defeated by the interposition of one of our ships of war, at that time in ilie hai tor of San Joan Subsequently to this, in Mi.y last, a body of me from Oreytovit crossed over to Punta Arenas, arrogating au thority to arrest, on the charge of murder'', a enptaiu of one of the steamboats of the Transit Company Being well aware that the claim to exercise jurisdiction there would be resisied then. as it had been on previous occasions, they went prepreil to asi-ert it by turcel 0 arms- Our minister to Central America h p peoed to be present on that occasion. Beli # ing that the captain of the steamboat was in b cent fur lie witnessed the transaction ou wb the charge was founded, and believing, a i t i that the intruding party, having no juriA, t tion over the place where they proposed make the arrest, would encqnnter desper resistance it they persisted in their purpose, interposed, effectually, to prevent violence bloodshed. The American —,-• ' one American minister afterwards visitet Greytown, and whilst he was there, a mob, in cluding certain of the so called public function aries of the place, surrounded the house! in which he was, avowing that they came to ar rest him, by order of some person exercising the chief authority. While parleying With them he was wounded by a missile from the crowd. A boat, despatched from the Ameri can steamer "Northern Light" to release from the perilous situation in which he •as understood to be, was fired into by the town guard, and compelled to return. These it'd dents, togther with the known character of he population of Greytown, and their exci ed state, induced just apprehensions that die li-es and property of our citizens at Punta Arenas would be in imminent danger after the depar ture of the steamer with her passengers, for New York, unless a guard was left for ir protection. For this purpose, and in ordeto ensure the safety of the passengers and pr p etty passing over the route, a temporary force was organized, at considerable expense to the United States, for which provision was made at the lastosession of Congress. This pretended community, a heterogenous assemblage gathered from various countries, and composed, for the most part, of blacks and persons ~f mixed blood, had previously gigon other indications of mischevious and dangenaus propensities. Early in the same month,.prOp erty was clandestinely abstracted from the de pot of the Transit Company, and taken Ito Greytown.- The plunderers obtained shelter there, and their pursuers were driven back iby its people, who not only protected the wrong doers and shared the plunder, but treated with rudeness and violence those who sought to -e -cover their property. Such, in substance, are the facts submit ed to my consideration, and proved by trustwor thy evidence. I could not doubt that the case demanded the interposition of this government. Justice required that reparation shouldjbe made for so many and such gross wrongs, and that a course of insolence and plunder, tending directly to the insecurity of the lives of nu merous travellers, and of the rich treasurehe longing to our citizens, passing over this tran sit way, should be peremptorily arrested Whatever it might be in other respects, the community in question, in power to do mis chief, was not despicable. It was well provid ed with ordnance, small arms and ammunition, and might easily seize on the unarmed books, t freighted with millions of property, which pa s ed daily within its reach. It did not prof ss to belong to any regular government, and k 1, in fact, no recognized dependence, or connec tion with, any one to which the United States or their injured citizens might apply for re dress, or which could be held responsiblej in any way, for the outrages committed. Not stand ing before the world in the attitude of an organ ized political society,being neither competent) to exercise the rights nor discharge the obligaticins of a government, it was, in fact a marauding establishment, tooangerous to be disregard ed, and too guilty tipass unpunished, and yet incapable of beingtreated in any other w!ay than as a piratical rort of out laws, or a camp of savages, depredating on emigrant trains lor caravans and the frontier settlements of cival ized States. Seasonable notice was given to the people of Greytown that this government required them to repair the injuries that they had dcine to our citizens, and to make a suitable apology for their insult of our minister, and that a ship of-war would be dispatched thither to enforce compliance with these demands. But the !no tice passed unheeded. Thereupon, a comman der of the navy, in charge of the sloop-of-War " Cyanne," was ordered to repeat the demails, and to insist upon a compliance therewith— Finding that neither the populace or those as suming to have authority over them, manif4t ed any disposition to make the required repar ation, or even to offer excuse for their condupt, he warned them, by a public proclamation, that if they did not give satisfaction withiq a time specified, he would bombard the town.;! By this procedure he afforded them opporiu: ti i p nity to provide for their personal safety. o those also who desired to avoid loss of pr - erty, in the punishment about to be inflicted ' n the offending town he furnished the mean of removing their effects by the boats of his o n ship, and of 'a steamer which he procured' d tendered to them for that purpose. At lergth perceiving no disposition on the part of ?the town to comply with his requisitions, he ap pealed to the commander of her Britannic Ma jesty's schooner "Bermuda," who was seenlto have intercourse, and apparently much influ ence with the leaders among them,—to inter pose, and persuade them to take some course calculated to save the necessity of resorting to the extreme measure indicated in his proclama tion ; but that officer, instead of acceding to the request, did nothing more than to protest against the contemplated bombardment. No steps of any sort were taken, by the people, to give the satisfaction required. No individuals, if any there were, who regarded themselves las not responible for the misconduct of the com munity, adopted any means to separate them selves from the fate of the guilty. . The several charges, which the demands for redress were founded, had been publicly knoivn to all for some time, and were again announc ed to them. They did not deny any of thtise charges ; they offered no explanation, nothing in extenuation of their conduct; but contuma ciously refused to hold any intercourse with the commander of the "Cyane?' By - their rb stinate silence they seemed rather desirous to provoke chastisetnent than to escape it. There e i r, is ample reason to believe that this conduct of wanton defiance, on their part, is imputable to the delusive idea that the American gave n ment would be deterrdd from punishing th , through fear of displeasing a formi !able f, r eign power, which, they preshmed to think, looked with complancy upon their aggressive and insulting deportment towards the United States. The " Cyane "at length fired upon the town. Before much injury had been done, the fire was twice suspended, in order to afford opportunity for an arrangement; but this was declined. Most of the buildings of the plae, of little value generally, were, in the seq el, destroyed; but owing to the considerate e cautions taken by our naval Commander, t re was no destruction of life. When the "Cyane" was ordered to Cen al America, it was confidently hoped and expeet ed that no occasion would arise for " a resbrt to violence and destruction of property J.nd loss of life," Instructions to that effect were given to hdi commander. And no extreme act would have been requisite had not the people themselves, by their extraordinary conduct' in the affair, frustated all the possible mild meas ures for obtaining satisfaction. A withdravral from the place, the object of his visit entirely defeated, would, under the circumstances! in which the commander of the Cyane found him self, have been the absolute abandonment of lall claim of our citizens for indemnification and submissive acquiescence in national indignliy. It would have encouraged in these lawless 'den a spirit of insolence and rapine most dangerous to the lives and property of our citizens I at Punta Arenas, and probably emboldened thlm to grasp.st the treasures and valuable merch n dize continually passing over the Nic. •2 a route. It certainly would have been most to t isfactory to me if the objects of the ‘ Cyane s" mission could have been consummated with .ut any act of public force; but the arrogant c . n- tumacy of the offenders rendered it impossible to void the alternative, either to break up their establishment or to leave them impressed with the idea that they might persevere with impun ity in a career of insolence and plunder. This transaction has been the subject of com plaint on the part of some foreign powers, and has been characterized with more of harshness than of justice. - If comparisons were to be instituted, it would be difficult to pi sent repeated instances in the history of States, standing in the very front of modern civilization, where communities, far less offending and more defenseless than Greytown, have been chastised with much greater severity, and where not ; cities only have been laid in ruins, but human life has been recklessly sacrificed, and the blood of the innocent made profusely to mingle with that of the guilty. Passing from foreign to domestic affairs, your attention is naturally directed to the financial con dition of the country, always a subject of generaL interest. For complete and exact information re garding the finances, and the various branches of the public service connected therewith, I refer you to the report of the Secretary of the Treasurer, from which it will appear that the amount of reve nue during the last•fiscal year, from all sources, was seventy-three million five hundred and forty niits thousand seventundred and five d lars : and that the public expenditures for the period exclusive of payments on account of t public debt, amounted to fifty-one million eighteen thou sand two hundred and forty-nine dollars. During the same period, the , payments made in redemption of the public debt, including interest and premium, amounted to twenty-four million three hundred and thirty-six thousand three hundred & eighty dollars. To the sum total of the receipts of that year is to be added 11. balance remaining in the Treasury at the commencement thereof; amounting to twenty one million nine hundred and forty-two thousand eight hundred and ninty-two dollars;and at the close of the same year, a corresponing balance amounting to twenty million one hundred and thirty-seven thousand nine hundred and sixty-seven dollars of receipts above expenditure, also remain ed in the Treasury. Although, in the opinion of the Secretary of the Treasury, the receipts of the current fiscal year are not likely to equal in amount those of the last, yet they will undoubtedly exceed the amount of expenditures by at least fifteen mil lions of dollars. I shall, therefore, continue to di rect that the surplus revenue be applied, so far as it can be judiciously and economically done, to the reduction of the public debt, the amount of which, at the commencement of the last fiscal year, was sixty-seven million three hundred and forty thou sand six hundred and . twenty-eight dollars; of which there had been paid on the twentieth day of November, 1854, the cum of twenty-two million three hundred and sixty-five thousand one hundred and seventy-two dollars; leaving a balance of out standing public debt of only forty-four million nine hundred and seventy-five thousand four hun dred and fifty-six dollars, redeemable at different periods within fourteen years. There are also rem nants of other government stocks, most of which are already due, and on which the interest has ceased, butrwhich have not yet been presented for payment, amounting to two hundred and thirty three thousand one hundred and seventy-nine dol lars. This statement exhibits the fact, that the annual income of the; government greatly exceeds the amount of its public debt, which latter remains unpaid, only because the time of payment has not yet matured, and it cannot be discharged at mite, except at, the option of public creditors, who pre fer to retain the securities of the United States; and the other fact, not less striking that the annual revenue from all sources exceeds, by many millions of dollars, the amount needed for a prudent and economical administration of the government. The estimates presented to Congress from the different Executive Departments, at the last ses sion, amounted to thirty-eight million four hundred and six housand five hundred and eighty-one dol lars, and the appropriations made, to the sum of fifty-eight million one hundred. and sixteen thou sand nine hundred and fifty-eight dollars. •Of this excess of appropriations over estimates, however, more than twenty millions was applicable to extra ordinary objects, having no reference to the usual annual expenditures.. Among these objects, was embraced ten millions to meet the third article of the treaty between the United States and Mexico ; so that, in fact, for objects of ordinary expenditure, the appropriations were limited to considerably less than forty millions of dollars. I therefore, re new my recommendation for a reduction of the duties on imports. The report of the Secretary of the Treasury presents a series of tables, showing the operation of the revenue system for, several successive years, and as the general,principle of re duction of duties with a view to revenues and not protection, may now be regarded as the settled policy of e country, I trust that little difficulty will be encountered in settling the details of a measure to that effect. In connection with this subject, I recommend a change in the laws, which recent ex,.erience has showu to be essential to the protection of the government. There is no express provision of law, requiring the records and papers of a public character, of the several officers of the govern ment, to be left in their offices for the use of their successors, nor any provision declaring it felony on their..part to make false entries in the books, or return false accounts. In the absence of such express provision by law, the ootgoing officers in many instances, have claimed and exercised the right to take into their own possession, impor tant books and papers, on the ground that these were their private property; and have placed them beyond the reach of the government. Con duct of this character, brought in several instan ces to the notice of the present Secretary of the Treasury, ntaurally awakened his i uspicion,and resulteo in the disclosure that at four porta name ly Oswego, Toledo, Sandusky, and Milwaukie, the treasury had, by false entries, been defraud.: ed, within the four years next preceding March 1853, of thesum of one-hundred and ninety-eight thousand dollars. The great difficulty with which the detection of these frauds has beeli a(tended, in consequence of the abstraction of books and papers by the retiring officers, and the facility with which similar frauds in the public service may bd perpetrated, tender the necessity of new legal eriactmentsy is the respects above referred to quite obvious. For other -material modifies cations' of the revenue laws which scent to the desirable, I refer you to the Secretary of the Treasury. That report and the tables which ac company it, furnish ample proofs of solid foundation on which the financial security of the country rests, and of the salutary influence of the independent treasury system upon commerce and all monetary operations. The experience of the last year furnishes addi tional reasons, I regret to say, of a painful char acter, for the recommendation heretofore made to provide for increasing the military force ens ployed_in the territory inhabited by the Indians.-- The settlers on the northern frontier have suffer ed much from the incursions of predatory bands, and large parties of emigrants to our Pacific pos sessions have been massacred with impunity.— The recurrence of such scenes can only be pre vented by teaching these wild tribes the po, er of, and their responsibility to the United States. From the garrisons of our frontier posts, it :s on ly possible to detach hoops in small bodies; and though these have on all occasions displayed a a gallantry and a stern devotion to duty, which on a larger field would have commended univer sal admiration, they have usually suffered severe iv in those conflicts with superior numbers, and have sometimes 'been entirely .sacrificed; All the disposable force of the army is already em ployed on this service, and is known to be whol ly inadequate to the protection which shoUld be afforded. The public mind of the country has been re cently shocked by savage atrocities committed .upon defenceless emigrants and border settle ments, and hardly less by the unnecessary de struction of valuable lives, where inadequate detachments of troops have undertaken to fur nish the needed aid. Without increase of the military torte, these scenes will be repeated, it is to be . feared, on a larger scale, and with more disastrous consequences. Congress, lam sure, will perceive that the plainest duties and re. eponsibilities of government are involved in this question, and I doubt not that prompt action may be confidently anticipated when delay must be attended by such fearful hazards. The bill of the last session, providing for an increase of the pay of {he rank and file of the army has had beneficial results, not only in fa cilitating enlistments, lit in obvious improve ment in the class of me ltwho enter the service. I regret that corresponding consideration was not bestowed on the °Mears, who, in view of their character and services, and the expenses to which they dye necessarily subject, receive at present what is, in my judgment, inadequate compensation. The valuable services, constantly rendered by the Army, and its inestimable importance, as the nucleus around which the volunteer forces of the nation can promptly gather in the hour' of danger, sufficiently attest the wisdom of main taining a Military peace establishment; but the theory of our . system and the wise practice under it, require that' any proposed augmentation, in time Of peace, be only commensurate with our extended liinitn and frontier relations. While scrupulously adhering to this principle, I find, in existingcircumetances, a necessity for increase of our military' force, and it is believed that lour new !regiments, two of infantry and two of mounted men, will be sufficient to meet thepres ent exigency. !If it were necessary carefully to weigh the cost in a case of such urgency, it would be shown that the additional expenses would be comparatively light. With the increase of numerical force of the army should, I think, be cOnbined certain meas ures of reform in its organic arrangement and administration: The present organization is the result of partial legislation often directed to special objects and interests; and laws regula ting rank and command, having been adopted many years ago from the British code, are not always applicable to our service. It is not sur prising, therefore, that the system should be de• ficient in the symmetry and simplicity essential to the harmonious working of its several parts, and require a careful revision. The present organization by maintaining large staff corps or departments, separates many offi oars from that close connection with troops, and those active duties in the field, which are deem requisite to qualify them for the varied responsi bilities of high command. Were the duties of the army.staff mainly discarged by officers detach ed from their regiments; it is believed that the special service would be eqalfy well performed, and the discipline and instruction of the army be improved. While due regard to the security of the rights in officers, and to the nice sense of honor which should cultivated among them, would seem to exact compliance with the estab lished rule of promotion in ordinary cases, still it can hardly be doubted that the range of pro-- motion by selection, which is now practically confined to the grade of general officers, might be somewhat extended with benefit to the public service. . . Observance of the rule of seniority sometimes leads, eepecially in time of peace, to the promo tion of officers who, alter meritorious and even distinguished service, ma)* have been rendered by age or infirmity, incapable of performing ac tive duty, and whose advancement, therefore, would tend to impair the efficiency of the army. Suitable provision lor this class of officers, by the creation of a retired list, would remedy the evil. without wounding it , just pride of men who, by past services ha, established a claim to high consideration. in again commending this measure In the favorable consikration of Congress, I would suggest that, the power of pla cing officers on the retired list be limited to one year. The practical operation of the measure would thus be tested, and if. alter the lapse of years, there should be occasion to renew the pro vision, it,can be re-produced with any improve ments which experience may indicate. The present orginiz units of the artillery into regimi ills is liable to obvious objectibus. The services of artillery is that of bUtteriea, and an organization of batteries into a corps of artillery would be more consistent with the nature of their ditties. A lar g e part of the troops 110 w called artillery are, and has been on duty as infantry; the distinction between e two arms being merely nominal. This nominal artillery in our service is entirely disproportionate to the whole - force, and greater than the wants of the country demand. I therefore command the dicontinuance of a distinction, which has on foundation in either the armi: used or the character of the s.etvice ex pected to he performed. In conneetion t with the proposition for the in crease of the army, I have presented these sug gestions with regard to yes tails measures of re form, as the complement of a system, which would product the happiest rcsults from a given expenditure, all which I hope may attract the early attention, and be deemed worthy of the ap proval of Coaeress. The recommendation of the Secretary of the Navy, having reference to more ample provisions for the discipline and general improvement in the character seamen. And for the re organiza tion and groltiol increase 01 the navy, I deem eminently worthy of your favorable consideration The principles, which have controleil our policy in relation to the p•rmauent military force, by sea and land, are sound, consistent with the theo ry of dur system and sirould be no means be dr.reg,arled. Rut, limiting the force to the ob jects Rath-tido !yr- set forth in tire preceeding part ot this message, we sionitd not overlook the pres ent magrittade and prospective extension of our commeicjal marine; tow toil to give weight to the lact that besides I Ile t,vo thousand miles of Atlantic seaboard, we have now a Pacific coast, atrAtelung from Nlitici.m to tlak . British possessions in the north, teeming with wealth and eiderprize, and demanding the constant presence of ships of war: The augmentation 01 the navy has not kept poce with the duties properly and profitably assigned to it in time of peace, and it is inade quate tor the' large field of•ils operations, riot merely in` the present but still more in the pro gressively increasing exigencies of the wealth and commerce 01 the United States. I cordially approQe ot the prof osed apprentice system for our nationalyessels, recommended by the Secre tary of the Navy. _ The occurrence, during the last few months, of marine diatsters of-the most tragic nature, involving, great loss of human life, has produ• ted intense emotions of sympathy and sorrow nhroughout the country. It may be well doubt ed whether all these calamitous- events are wholly attributable to the necessary and in evitable dangers of the sea The merchants, mariners, and ship builders of the U States, are, it is true, unsurpassed in far-reaching enterprises, skill, intelligence, end courage, by any other in the world. But with the in creasing amount of our commercial tonnage in the aggregate, and the larger size and improv ed equipment of the ships now constructed, a deficiency in the supply of,reliable seamen be gins to lie very seriously felt The inconve nience may, perhaps, be met, by due regula tion for the introduction into our merchant ships, of indentured apprentices; which, while it would afford useful cud eligible occupations to numerous young men, would have a tenden cy to raise the character of seamen as a class . And -it is deserving of serious reflection, whe ther it may not be desirable to revise the ex laming laws for the maintenance of discipline at sea, upon which the security of life and pro perty on 'the ocean must to so great an extent depend. Although much attention has alrea dy been given by Congress to the proper con-. struclioa and arrangement of steam vessels, and all passenger ships, still it is believed that the achievements of science and mechanical skill in this direction have not been exhausted No good reason exists for the marked distinc tion, which appear upon our statutes between the laws for protecting life and property at sea, and those for protecting them on land. In most of the States severe penalties are provi ded to punish conductors of trains, engineers, and others employed in the transportation of persons by railway, or by steamboats on rivers. Why should not the same principle be applied to acts of insubordination, cowardice, or other Misconduct on the part of masters and mariners, producing injury or death to passen gers on the high seas, beyond the jurisdiction of any of the States, and where such delinquen cies can be reached only by the power of Con gress ? The whole subject is earnestly com mended to your consideration. The report of the Post Master General, to which you are referred for many interesting details in relation to this important and rapidly extending branch of the public service, shows that the expenditures of the year ending-June 30, 1854, including one hundred and thirty three thousand, four hundred and eighty three dollars of balance due to foreign offices,amonn ted to eight millions seven hundred and ten thousand, nine hundred and seven dollars.— The gross receipts during the same period amounted • to 'six millions, nine hundred and fifty-five thousand, five hundred and eighty-six dollars, exhibiting an expenditure over income of . one million, seven hundred and fifty-five thousand, three hundred and• twenty one dol lars, and a diminution of deficiency, as compa red with the last year, of thr-:e hundred and sixty-one thousand, seven hundred and fifty-six dollars. The increase of tile revenue of the depart ment for the year ending June 30, 1854, over the preceding year. was nine hundred and seventy thousand three hundred and ninety nine dollars No proportionate increase, however, can be anticipated for the current year, in cons'equeuce of the act of CongresS of June 24,1854, providing for increased com pensation to all postmasters. From .these statements, it is apparent that the Poet Office Department, instead of defraying 'its expenses according to the, design at the time of its crea tion, is now, and under existing laws must continue to be, to no small extent, a charge upon the general treasury • The cost of mail transportation, during the. year ending June 30, 1854, exceeds the cost of the preceding year by four hundred and ninety• five thousand and seventy four dollars I again call your attention to the subject of mail transportation by, ocean steamers, and commend the suggestions of the Postmaster General to your early attention. During the last filed year eleven million seventy thousand nib() hundred and thirty five acres of the public lands have been surveyed, and eight million one hundred and ninety thou sand and seventeen sores brought into market . 1 The number of acres s/ld is seven pillion thir" ty five thousand seven hundred mid thirty.five and the amount received therefor ;nine million two hundred and eighty.five thousand five hundred and thirty-three dollarq . The aggre gate amount of land sold, under.nplitary scrip and land warrants, selected as !swamp lands by States, and by locating under grants for roads, is upwards of twenty three millions of acres. The increase bf lands sold, over the previous year, is about six millions of acres;' and the sales during the two first. quarters of the current year preset tbe, extraordinary re suit of five and a half illions sold, exceeding by nearly four millions of acresi the sales of the corresponding. quarters of the last year, thus increasing to an extent unparalleled du ring any like period in our past history, the amount of revenue d rived front this source for the Federal Treesu y. a The commendable p licy of the government, in relation to setting apart public domain for those who have served their country in time of war, is illustrated by he fact, thist since 1790 no less than thirty millions of acres have been applied to this object. 1 Thr ..te suggestions, which I submitted in my annual message of last year, inf i reference to grants of land in aidl of the construction of railways, were leas ful l and explibit than the magnitude of the subjbet and subsequent de• velopments would seem to render; proper and desirable. Of the soundness of the principle then asserted with regard to the !imitation of the power of Congress, I entertain no doubt ; but in its application it is not enongh that the value of lands in a particular locality may be enhanced; that, in fact, a largok. amount of money may probably be receivel, in a given' time, for alternate sections . , than could have been realized for all the sections, without the impulse and influence of the 13 °posed im provements. A prudent propriet or looks be yond limited sections of hie doain, beyond present results, to. the ultimate,effeot whioh a particular line of poliby is likely' to produce upon all his possessions and interests. The government, which is trustee, in ris matter, for the people of the Stites, is b a nd to take the same wise and oomitrehensiv9view Prior to'and duringhe last session of Con• gross, upwards of thi ty million i of acres of , f, land were withdrawn rom public bale with a view to application for rants of this character pending before Cong ass. A careful review of the whole subject led me to direct that all such orders be abrogated, and the lands re stored to market; andrinstruotions were im mediately given to theft effect. The applion liens at the last session cooteMplated the construction of more than five thousand miles of road, and grants top the amount of nearly twenty millions of aortjs of the pudic domain. Even admitting the right on the part of Con gress to he unquestionable, is it quite clear th4t the proposed grants would bi productive of good, and not evil? .1. The different projects are confined, for the present, to eleven States of this Union, and one Territory tThe reasons assigned for the grant 4 show that, it is prono Bed to put the works speedily in process of construction. When vzo reflect, that since the commencement of the cbristructioq of railways in the United States, Stimulated t,it they have been by the large dividends reallicd from the earlier works over tle . great thbroughfares. and between the mot important points of commerce and papulatinn, enoeur.tged by State legislation. anq,pressed forward by the amaz ing energy erprivate len terprise, only seven teen thousand miles fiaie Seen completed in all the States in a gnarter of a century= when we see the cripOed condition ,4 many works commenced andi prosecuted. upon what were deemed to be sonnd pi-4'6416 and safe caloulations,-when wei contemplate the Peer mous absorption of capital withdrawn from the ordinary channels of business, the extra, agAnt rates of 'interest at this moment paid to continue operations, Idle bankruptci, a not . . merely in money, but in charact er, and the inevitable effect upon finances generally ;-- can it he doubted that the tendency is to run to excess in this matt e r' Is it Wise to tug ment this excess by enouraging hopes of sud den wealth expected to fflow from, m.guificent schemes dependent upon the action of Congress' Does the spirit which', has produced such re sults need to be stimubited or checked ' Is it not thy better rule to leave all these works to private enterprise, regulated, and ,when expe dient, aided, by the Co 'operation of States' If constructed by. private , capital, the stimd lant and the check go tOgether, and furnish a salutary restraint against speculative schemes and extravagance. Bt9t it is manifest that, with the most effective guards, there is danger of going too fast and too far. We may well pause before it proposition con templating a simultaneous movement for. the construction of railroads which, in extent, will equal, exclusive of the great Pacific road and all its-branches, nearly} one third of the entire length of such works,now completed, in the United States, and w hich cannot cost, with equipments, lees than one hundred and fifty. millions of dollars. The dangers likely to re suit from combinationslof interests of t hischa racter, can hardly be; overestimated. But, independently of these I L considerations, where is the accurate knowledge, the comprehensive intelligence, which shall disoiiminate between the relative claims of these twenty eight pro posed roads, in eleven States. and one Territo ry? Where will ycu begin and where end? If to enable these companies to execute their proposed works, it is necessary that the aid of the general governmetalt be primarily given, the policy will present la problem so compro• betntive in ita bearings, and so important to our political and social well being, as to claim in anticipatian, the severest analysis. Enter taining these views. I recur with satisfaction to the experience and aetion of the last session of Congress, as furnishing assurance that the subject will not fail Ito elicit a careful re— examination and rigidl scrutiny It was my intention ,to present, on this oc =ilea, some suggestions regarding internal improvements by the; general government, which want of time at the &esti of dhe last nee• !Min prevented my submitting on the return to the House of Representatives, with objections, of the bill entitled. •'ap act making appropri ations for the repair, preservation and cam pletion of Certain public works heretofore commenced under authority of law;" but the apace in this comtnnitication already occupied with other public matter of immediate public exigency constrains me' to reserve that subject for a special message. wlhich will be transmit• ted to the two Houses of Congress at an early day i The judicial establishment of the U. States requires modifinatina, and certain reforms in the manner of conducting the legal business of the government are idea much needed, but as I have addressed you uPon both of th ese sub jects at length before, I have only to-call your attention to the suggestions then made. My former recommenilations, in relation to suitable provision for ,arinue objects of deep interest to the inbabittints of the District of Oblumbia, are renewed Many of these objects partake 19gely of a ational character, and are important. iodepen ently, of their relation to the prosperity of th only considerable or ganized community, en irely Unrepresented in Coogress. I have thus presented suggestions on such subjects ae appear to ne, to he of partibular interest or importance, and therefore Most , worthy of consideration during the short re wetining period allotted to the labors of the present Congress . Otir ((trefoil/its of he iiiirteen United Colonies, in acquiring their u:deperidencti, audio triundieg this Republic of,the UM ad Stains of America, have devolved upoil its, their descendants, the greatest and the most no le mud ever committed to the hands of man, imp sing upon all and °ape cially such as the public rill may have iiivested for the time beieg, wi h political Weenie*, the most sacred obligations. We:have to maintain inviolate the great doctrine of the inherent right of popular self governrmit ; to reconcile the largest liberty Oldie Mat dual citizen, with corn „it plete security of the p tithe order; to render' cheerful obedience to the law:,3 of the land, to unite in entor ing their xecution, and to frown indignantly on ep.combi atiints to resist Them; to harmonize a sincere an ardent devotion to the institutions of religious With the most universal religious toleration; to p eserve the rights of all by causing each to reapt those tit the other ; in carry forward every soci I improvement to the uttermost limit lif hum I perfeetibility, tit the e, free action of mind upon mind.'-uto by lie obtru sive interventionlof misa plied lloree';- to uphold the integrity lied guard t e limitatioas It our or garlic law; to preserve s creel from all touch or usurpation, lie the very p Iladium of our vilitical salvation. the rest tved powers of the several States Red of the peo.ile io cherish,. with loyal teal!) , and devoted affect in, 'his Union, as the Only BUN fielleilillOW on Willeil the hopes et 1 I vii liberty rest ; to administ ir goverumeill with vigi (OONOLIMID ON TOUBTH PAGE.), . 1 NO.
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