. , I : ,•. ... - .. - . . . . . .. . . . . . • . , , , . . . .. .. . . . , . . .1 . • • . . .. . . .' • C i ll'''• 7 .. • . . e ibl- • • 'r 1 • . , ,:. -. . . , . ' ' nt . .. ',.! . ' 1 .- / gle l lt .. t. , -:. . , . . 4 - .7 . .. , :-. , 1.. .. . . . . . , . . . , , IvoL. LVI. President's Message. Fellow-Citizens of the Senate and of the House of Representatives. The Constitution of the United States provides that Congress shall assemble annually on the first Monday of December, and it has been usual for the President to make do communication of a public character to the Senate and House of Reprosentativew until advised of their readiness to receive it. 1 have deterred to this usage until the close of the first month of the session, but my convictions of duty will not permit me longer to postpone the discharge of the obligation enjoined by the constitution mem the President "to giate the Congress information of the state of the Union, and recommend to their consideration such meas ures as he shall judge necessary and expedient." It is matter of congratulation that the Republic is tranquilly advancing iu a career of prosperity MA peace. Whilst relations of amity continue to exist between the United States and all foreign power, with seine of them grave questions are depending, which may require the consideration of Congress. Of much questions, the most important in that, which has arisen out of the negotiationswith Great Britain in ref emice to Central America. By the convention concluded between the two govern ments on the 19th of April, 1810, both parties covenanted that neither will ever occupy, or fortify, or colonize or assume, or exercise any dominion over Nicaragua, Costa Rica, the Mosquito coast, or any partof Central America." It was the undoubted understanding of the United States, In making this treaty, that all the present States of the former republic of Central America, and the entire territory of each, would thenceforth enjoy complete iude ,pcndence ; and that both contracting parties engaged equally, and to the same extent, for the present anal for the future, that if either of them had any claim of right in Central America, such claim, and all occupation or au thority under it, were unreservedly relinquished by the stipulations of the convention ; and that no dominion was thereafter to be exercised orassumed in any put of Cen tral America, by Great Britain or the United States. This government consoled to restrictions in regard to region of country, wherein we had specific :and peculiar Interests, uuly upon the souviction that the like restric thins were in tine Mille sense obligatory on Great Britain. But for this understanding of the force and effect of the convention, it would never have been concluded by us. So clear was this understanding un the part of the UM .OII States, that, in correstmndence cotemporatieous with the ratification of the Convention it war distinctly ex pressed that tire mutual covenants of 11011-oCellpittioll were not intended to apply to the British establinbillelitS of the Belize. This qualification Is to be ascribed to the fact, that, in virtue of successive treaties with previous sever ereigns of the country, Great Britain had obtained a con cession of the right to cut mahogany or dyewoods at the Belize, but with positive exclusion of all 1101111lill or 005- nreighty ; and thus it confirms the natural construction end underlinsul intport of the treaty as to all the rest of the region to which the stipulations applied. however, became apparent, ut an early day after en t ,ring upon the discharge of my present functions, that Great Britain still continued ill the exercise or assertion of large authority in all that part of Central America connuunly called the Mosquito coast, and covering the entire length .4 the State of Nicaragua. arid a part of Costa Ririe that she regarded the Belie,' ns her absolute domain, and was gradually extending its limits at the expense of the State of Honduras; and that she had for mally colonized a considerable insular group known as the Bay Islands, and belonging, of right, to that State. All these acts orpretensiour of Great Britain, being con trary to the rights of the States of Central America, and to the manifest tenor of her stipulations with the United States, as understood by this government, have been made the subject of negotiation through the American Minister in London. I transmit herewith the instruc tions to him ou the subject, and the corespondence be tween him and tine British Secretary for Foreign Affairs, by which you will perceive that the two goVernments differ widely and irreconcileably as to the cmistruction of the convention, and its effect on their respective relhtions to Central America. Great Britian so construes the convention, as to'ntain tain unchanged all her. previous pretensions over the Mosquito coast, and in different parts of Central Ameri ca. These pretensions, as to the Mosquito coast, are founded on the assumption of political relation between Great Britain and the rentnant of a tribe of Indians on that cceist, entered into at a time when the whole cohin try was a colonial pos.esslon of Spain. It cannot be suc cessfully controverted, that, by the public law of Eu rope and America, no possible act of such Indians or their predecessors could confer on Great Britain any po. laical rights. Great Britain does not allege the ass rot of Spain as the origin of her claims on the .Mosquito coast. She has. on the contrary, by repeated and successive Icalico. re nounced and relinquished all pretensions of her own, and recognized the full and sovereign rights of Spain in the most unequivocal terms. Yet these pretensions, so without solid foundation In the beginning, and thus re peatedly abjured, were, at a recent period, revived by Great Britain against the Central American States, the legitimate successors to all the ancient jurisdiction of Spain in that region. They were first applied only to a defined part of the coast of Nicaragua, afterwards to the whole of its Atlantic coast, and lastly to a part of the coast of Costa Rica; and they are now reasserted to this extent, notwithstanding engagements to the United States. On the eastern coast of Nicaragua and Costa Rica, the interference of threat Britain, though exerted at one time in the form of military occupation of the port of San Juan del Norte, then in the peaceful possession of the appropriate authorities of the Central America States, is now presented by her as the rightful exercise of a pro tectorship over the Mosquito tribe of lulians. • But the establishment at the Belize , note reaching far beyond its treaty limits into the State of Honduras, and that of the Bay Islands, appertaining of right to the same State, are as distinctly colonial ~,, ,o vernments as those ofJantaica or Canada, and theref.we contrary to the very letter as well as to the spirit of the convention with the United States, as it was at the time of ratifica tion, and now is, understood by this ~, o veruntent. The interpretation which the British government thus in assertion and act, persists in ascribing to the conven tion, entirely changes its character. While it holds us to all our obligations, it in a great measure releases Great Britain from those, which constituted the consid ation of this government for entering into the conven tion. It is impossible, in my judgment, for the United States to acquiesce in such a construction of the respect ive relations of the two governments to Central America. To a renewed call by this government up on Great Britain, to abide by, and carry. into effect, the stipulations of the convention, according to its obvious import, by with drawing from the possession or colonization of portions of the Central American States of Honduras, Nicaragua and Costa Rica, the British government has at length replied, affirming that the operation of the treaty is prospective only, and did not require Great Britain to abandon or contract any posses sions held by her in Central America at the date of its conclusion. This reply substitutes a partial issue in the place of the general one presented by the United States. The . British government passes over the question of the rights of Great Britain, real or supposed, in .Central America, and assumes that she had' such rights at the date of the treaty, and that those rights comprehended the protectorship of the Mosquito Indians, the extended jurisdiction o nd limits of the Balize, and the colony of the Bay Islands, and therefore proceeds by implication to infer, that, if the stipulations of the treaty be merely future in effect, Great Britain may still continue to hold the con tested portions of Central America. The Uni ted States cannot admit either the infer ences or the premises. We steadily deny, that, at the date of the treaty, Great Aritain had any possessions there, other than the limited and peculiar establishment at the Balize, and maintain that, if she had any, they were surrendered by the convention. This government, recognising the obliga tions of the treaty, has of course desired to see it executed in good faith by both parties, and in the discussion, therefore, has not looked to rights, which we might asssert, independently of the treaty, in consideration of our geographical position and of other circumstances, which create for us relations to the Centel American States, different from those of any government of urope. The British government, in its last com municatiomalthough well knowing the views of 'the - United States, still declares that it sees no reason why a conciliatory spirit may not enable the two governments to overcome all obstacles to a satisfactory adjustment of the subject. Assured of the correctness of the construc tion of the treaty constantly adhered to by this government, and resolved to insist on the rights of the United States, yet actu ated alSo by the same desire which is avow ed by the British government, to remove all causes of serious misunderstanding between t No nations associated by so many ties of in terest and kindred, it has appeared to me proper not to consider 411 amicable solution of the controversy hopeless. There is, however, reason to apprehend that, with Great Britain in the actual occu pation of the disputed territories, and the treaty therefore practically null, so far as regards our rights, this international difficul ty cannot long remain undetermined, with out involving in serious danger the friendly relations which it is the interest as, well as duty of both countries to cherish and pre serVe. It will afford me the sincere gratifica tion if futur efforts shall result in the suc cess, anticipated heretofore with more con fidence thau the aspect of the case permits me now to entertain. RECRUITMENT. One other subject of discussion between the United States and Great Britain has grown out of tie attempt, which the exigen cies of the war in which she is engaged with Russia induced her to make, to drawrecruits from the United States. It is the traditional and settled policy of the United States to maintain impartial neu trality during the wars which from time to time occur among the great nations of the world. Performing all the duties of neu trality towards the respective belligerent states, we may reasonably expect them not to interfere with our lawful enjoyment of its benefits. Notwithstanding the existence of such L. stilitiee, our citizens retain the indi vidual right to continue all their accustom ed pursuits, by land of sea, at home or abroad subject wily - to spell restrictions in this rela tion as the laws of war, the usage of nations, or special treaties, may impose; and it is our sovereign right that our territory and juris diction shall not be invaded by either of the belligerent parties, for the transit of their armies, the operations of their fleets, the levy of troops for their service, the fitting out of cruisers by or against either, or any other act or incident of war. And these undenia ble rights of neutrality, individual and na tional, the United States will under no cir cumstances surrender. In pursuance of this policy, the laws of the United States do not forbid their citizens to sell to either of the belligerent powers, arti cles, contraband of war, or to take munitions of war or soldiers on board their private ships for transportation; and although, in so doing, the individual citizen exposes his property or person to some of the inizards of war, his acts do not involve any breach of national neutrality, nor of themselves implicate the government. Thus, during the progress of the present war in Europe, our citizens have, without national responsibility therefor, sold gutipowder and arms to all buyers, regard lesWof the destination of those articles. Our merchantmen have been, and still continue to be, largely employed by Great Britain and by France, in transporting troops, provisi ons, and munitions of war to the principal seat of military operations, and in bringing home their sick and wounded soldiers; but such use of our mercantile marine is not in terdicted either by the international or by our municipal law, and therefore does not compromit our neutral relations with Russiit. But our municipal law, in accordance with the law of nations, peremptorily forbids, not only foreigners, but our own citizens, to fit out, within the limits of the United States, a vessel to c.iminit hostilities against any state with the United States are at peace, or to increase the force of any foreign armed vessel intended fur such hostilities against a friendly state. Whatever concern may have been felt by either of the belligerent powers lest private armed cruisers, or other vessels, in the ser vice of one, might be fitted out in the ports of:this country to depredate on the property of the other, all such fears have proved to be utterly groundless. Our citizens have been withheld from such act or purpose by good faith, and by respect for the law. While the laws of the Union are thus per emptory in their prohibition of the equip ment or armament of belligerent cruisers in our ports, they provide not less absolutely that no person shall, within the territory or jurisdiction of the United States, enlist or enter himself, ur hire or retain another per son to go beyond the limits or jurisdiction of the United States with intent to be enlisted, in the service of any foreign state, either as a soldier, or as a marine or seaman on board of any vessel of war, letter of marque, or privateer. And these enactments are also in strict conformity with the law of nations. which declares, that no state has the right to raise troops fbr land or sea service in an other state without its consent, and 'that, whether forbidden by the municipal law or not, the very attempt to do it, without such consent, is an attack on the national sover eignty. Such being the public rights and the mu nicipal law of the United States, no solici tude nn the subject was entertained by this government, when, a year since, the British Parliament passed an act to provide for the enlistment of foreigners in the military ser vice of Great Britain: Nothing on the face of the act, or in its public history, indicated that the British government proposed to at tempt recruitment in the United States; nor did it ever give intimation of such intention to this government. It was matter of sur prise, therefore, to find, subsequently, that the engagement of persons within the United States to proceed to Halifax, in the British province of Nova Scotia, and there enlist in the service of Great Britain, was going on extensively, with little or no disguise. Or dinary legal steps were immediately taken to arrest and punish parties concerned, and so put an end to acts infringing the munici pal law and derogatory to our sovereignty. Meanwhile suitable representations on the subject were addressed to the British gov ernment. Thereupon it became known by the ad mission of the British government itself, that the attempt to draw recruits from this coun try originated with it, or at least had its ap proval and sanction; but it also appeared that the public agents engaged in it had "strinment instructions" not to violate the municipal law of the United States. It is difficult to understand how it should have been supposed that troops could be raised here by Great Britain, without viola tion of the municipal law. The unmistaka ble object of the law was to prevent every such act, which, if performed, must be either in violation of the law, or in studied evasion of it; and, in either alternative, the act done would be alike injurious to the sovereignty of the United States. In the meantime, the matter acquired ad ditional importance, by the recruitments in the United States not being discontinued, and the'disolosure of the fact that they were prosecuted upon a systematic plan devised by official authority; that recruiting rendez vous had been opened in our principal cities, and depots for the reception of recruits es tablished on our frontier: and the whole business conducted under the supervision and by the regular co-operation of British officers, civil and military, some in the North American provinces, and some in the United States. The complicity of those officers in an undertaking, which could only be accom plished by defying our laws, throwing sus picion over our attitude of neutrality, and disregarding our territorial rights, is con: elusively proved by the evidence elicited on the trial of such of their agents as have been apprehended and convicted. Some of the officers thus implicated are of high official position, and many of them beyond -our jurisdiction, so that legal proceedings could not reach the source of mischief. These considerations, and the fact that the cause of complaint was not a mere casual occurrence, but a deliberate design entered upon with full knowledg4, of our laws and national policy, and conducted by responsi ble public functionaries, impelled me to pre sent the case to the British government, in order to secure, act only a cessation of the wrong, but its reparation. The subject is still under discussion, the result of which will be communicated to you in due time. BRITISH RELATIONS-COB tinued I repeat the recommendation submitted to the last Congress, that provision be made for the appointment of a commissioner, in connection with Great Britain, to survey and establish the boundary line, which di vides the Territory of Washington from the contiguous British possessions. By reason of the extent and importance of the country in dispute, there has been iminent danger of collision between the subjects of Great Britain and the citizens of the United States, including their respective authorities in that quarter. The prospect of a speedy arrange ment has contributed hitherto to induce on both sides forbearance to assert by force what each claims as a right. Continuance of delay on the part of the two governments to act in the matter will increase the dangers and difficulties of the controversy. Misunderstanding exists as to the extent, character and value of the possessory rights of the Hudson's Bay Company, and the pro perty of the Puget's Sound Agricultural Company, reserved in our treaty wills Great Britain relative to the Territory of Oregon. I have reason to believe that a cession of the rights of both companies to the U. States, " THAT COUNTRY IS THE MOST PROSPEROUS WHERE LABOR COMMANDS THE GREATEST REWARD." LANCASTER CITY, PA., TUESDAY MORNING, JANUARY 8, 1856. which would be the readiest means of termi nating all questions, can be obtained on reasonable terms; and, with a view to this end, I present the subject to the attention of Congress. The colony of Newfoundland, having enacted the laws required by the treaty of the sth of June, 1854, is now placed on the same footing, in respect to the commercial intercourse with the United States, as the other British North American provinces. The commission, which that treaty con templated, for determining the rights of fishery in rivers and mouths of rivers, on the coasts of the United States and the British North American provinces, has been orga nized and has commenced its labors; to com plete which there is needed further appro priations for the service of another season. SOUND DUES In pursuance of the authority, conferred by a resolution of the Senate of the United States passed on the 3d of March last, notice was given to Denmark, on the 14th day of April, of the intention of this government to avail itself of the stipulation of the subsist ing convention of friendship, commerce, and navigation between that Kingdom and the United States, whereby either party might af ter ten years terminate the same at the expi ration of one year from the date of notice for that purpose. The consideration which led me to call the attention of Congress to that convention, and induced the Senate to adopt the resolution re ferred to, still continue in full force. The convention contains an article, which, al though it does not directly engage the United States to submit to the impossition of tolls on the vessels and cargoes of Americans pass ing into or from theßaltic sea, during the continuance of the treaty, yet may, by possi bility, be construed as implying such submis sion. The exaction of those tolls not being justified by any principle of international law it became the right and the duty of the Uni ted States to relieve themselves from the im plication of engagement on the subject, so as to be perfectly free to act in the premises in such way as their Public interest and honor shall demand. I remain of the opinion that the United States ought not to submit to the payment of the Sound dues, not so much because of their amount, which is a secondary matter, but be cause it is in effect the recognition of the right of Denmark to trust one of the great maritime highways of nations as a close sea, and the navigation of it as a privilege for which tri bute may be imposed upon those who have occasion to use it. This government, on a former occasion not unlike the present, signalized its determina tion to maintain the freedom of the seas, and of the great natural channels of navigation. The Barbary States had, for a long time, co erced the payment of tribute from all nations, whose ships frequented the Medetet , anean.— To the last demand of such payment made by them, the United States although suffer ing less by their depredations than ma ny other nations, returned the explicit an swer, that we prefered war to tribute, and thus opened the way to the relief of the com merce of the world from an ignominious tax, so long submitted to by the more powerful nations of Europe. If the manner of payment of the Sound dues differ from that of the tribute formerly conceded to the Barbary States, still their execution by Denmark has no better founda tion in right. Each was, in its orign, noth ing but a tax on a common natural right, ex tdrted. by those, who were at that time able to obstruct the free and secure employment of it, but who no longer possessses that power. Denmark, while resisting our assertion of the freedom of the Baltic Sound and Belts, has indicated a readiness to make some new arrangement on the subject, and has invited the governments interested, including the United States, to be represented in a conven tion to assemble for the purpose of receiving and considering a proposition, which she in tends to submit for the capitalization of the Sound dues, and the distribution of the sum to be paid as oommutation among the govern ments, according to the respective propor tions of their maritime commerce to and from the Baltic. I have declined in behalf of the United States to accept thie invitation, for the most cogent reasons. One is, that Den mark does not offer to submit to the conven tion the question of her right to levy the Sound dues. A second is, that, if the conven tion were allowed to take cognizance of that particular question, still it would not be competent to deal with the great internatio nal principle involved which effects the right in other cases of navigation and ormmercial freedom, as well as that of access to the Baltic. Above all, by the express terms of the propo sition it is contemplated, that the considera tion of the Sound dues shall be commingled with, and made subordinate to a matter whol ly extraneous, the balance of power among the governments of Europe. While, however, rejecting this proposition, and insisting on the right of free transit into 'and from the Baltic, I have expressed to Den mark a willingness on the part of the United States, to share liberally with other powers in compensating her for any advantages which commerce shall hereafter derive from expenditures made by her for the improve. ment aqd safety of the navigation of the Sound and Belts. I lay before you, herewith, sundry docu ments on the subject, in which my views are more fully disclosed. Should no satisfactory arrangement be soon concluded, I shall again call your attention to the subject, with rec ommendation of such measures as may ap pear to be required in order to assert and se cure the rights of the United States so far as they are affected by the pretentious of Den mark. I announce with much gratification, that, since the adjournment of the last Congress, the question, then existing between this gov ernment and that of France, respecting the French Consul at San Francisco, bas been sa tisfactorily determined, and that the rela tions of the two goverments continue to be of the most friendly nature. A question, also, which has been pending for several yearS, between the United States and the Kingdom of Greece, growing out of the sequestration, by public authorities of that country, of property belonging to the present American Consul at Athens, and which had been the subject of very earnest discussions heretofore, has recently been set tled to the satisfaction of the patty interest ed and of both governments. With Spain peaceful relations are still maintained, and some progress has been made in securing the redress of wrongs complained of by this government, Spain has not only disavowed and disapproved the conduct of the officers who'illegally seized and detained the steamer Black Warrior at Havina, bnt has also paid the sum claimed as indemnity for the loss thereby inflicted on citizens of the United States. In consequence of a destructive hurricane which visited Cuba in 1854, the supreme au thority of that island issued a decree, per mitting the importation, for the period of six months, of certain building materials and provisions, free of duty, but revoked it when about half the period only had elapsed, to the injury of citizens of the United States, who had proceeded to act on the faith of that decree. The Spanish Government refused indemnification to the parties aggrieved un til recently, when it was assented to, pay ment being promised to be made so soon as the amount due can be ascertained. Satisfaction claimed for the arrest and search of the steamer El Dorado has not yet been accorded, but there is reason to believe that it will be, and that case, with others, continues to be urged on the attention of the Spanish Government. I do not aban don the hope of concluding with Spain some general arrangement, which, if it do not whol ly prevent the recurrence of difficulties in Cuba, will render them less frequent, and whenever they shall occur facilitate their more speedy settlement. The interposition of this government has been invoked by many-of its citizens, on ac count of injuries done to their persons and property, for which the Mexican republic is responsible. The unhappy situation of that country, for some time past has not allowed its g overnment to give due consideration to claims of private separation, and has appear ed to call for and justify some forbearance in such matters on the part of this government. But, if the revolutionary movements; which have lately occurred in that republic, end in the organization of a staple government, ur gent appeals to its justice will then be made, and, it may be hoped, with success, for the redress of all complaints of our citizens. In regard to the American republics, which, from their proximity and other considera tions, have peculiar relations to this govern ment, while it has been my constant aim strictly to observe all the obligations of poli tical friendship and of good neighborhood, obstacles of this have arisen in some of them, from their own insufficient power to check lawless irruptions, which in effect throws most of the task to the United States. Thus it is that the distracted internal condition of the State of Nicaragua has made it incumb• eut on me to appeal to the good faith of our citizens ty abstain from unlawful interven tion in its affairs, and to adopt preventive measures to the same end ; which, on a sim ilar occasion, had the best results in reassur ing the peace of the Mexican States of Sono ra and Lower California. BM= Since the last session of Congress a treaty of amity, commerce and navigation, and for the surrender of fugitive criminals, with the kingdom of the Two Sicilies ; a treaty of friendship, commerce and navigation with Nicaragua ; and a convention of commercial reciprocity with the Hawaiin kingdom, have been negotiated. The latter kingdom and the State of Nicaragua have also acceded to a declaration, recognizing as international rights the principles contained in the conven tion between the United States and Bussia of the 22d of July, 1854. These treaties and conventions will be laid before the Senate for ratification. " TRBASCRY The statements made, in my last annual message, respecting the anticipated receipts and expenditures of the Treasury, have been substantially verified. It appears from the report of the Secretary of the Treasury, that the receipts during the last fiscal year ending June 30th, 1855, from all sources, were sixty-five millions three thousand nine hundred and thirty dollars ; and that the public expenditures for the same period, exclusive of payments on account of the public debt, amounted to fifty-six mil lions three hundred and fifty-six thousand three hundred and ninety-three dollars. Du ring the same period, the payments made in redemption of the public debt, including in terest and premium, amounted to nine mil lions eight hundred and forty-four thousanl Ave hundre.l and twenty-eight dollars. The bah.nato in the Treasury at the begin ning of the present fiscal year, July 1, 1855, was eighteen millions nine hundred and thir ty-one thousand nine hundred and seventy six dollars; the receipts of the first quarter, and the estimated receipts for the remaining three quarters, amount, together, to sixty seven millions nine hundred and eighteen thousand seven hundred and thirty-four dol lars ; thus affording in all, as the available resources of the current fiscal year, the sum of eighty-six millions eight hundred and fif ty-six thousand seven hundred and ten dol lars. If, to the actual expenditures of the first quarter of the current fiscal year, be added the probable expenditures for the re maining three-quarters, as estimated by the Secre'ary of the Treasury, the sum total will be seven ty-one millions two hundred and twenty-six thousand eight hundred and forty-six dollars, thereby leaving an estimated balance in the treasury on July 1, 1856, of fifteen millions six hundred and twenty-three thousand eight hundred and sixty-three dollars and forty one cents. In the above estimated expenditures of the present fiscal year are included three millions of dollars to meet the last instalment of ten millions provided for in the late treaty with Mexico, and seven millions seven hundred and fifty thousand dollars appropriated ou account of the debt due to Texas, which two sums make an aggregate of ten millions sev en hundred and fifty thousand dollars, and reduce the expenditures, actual or estimated, for ordinary objects of the year, to the sum of sixty millions four hundred and seventy six thousand dollars. The amount of the public debt, at the com mencement of the present fiscal year, was forty millions five hundred and eighty-three thousand six hundred and thirty-one dollars, and, deduction being made of subsequent payments, the whole public debt of the fed eral government remaining at this time is less than forty millions of dollars. The remnant of certain other government stocks, amounting to two hundred and forty ty-three thousand dollars, referred to in my last message as outstanding, has since been paid. I am fully persuaded that it would he dif ficult to devise a system superior to that, by which the fiscal business of the government is now conducted. Notwithstanding the great number of public agents of collection and die bursement, it is believed that the checks and guards provided, including the requirement of monthly returns, render it scarcely possi ble for any considerable fraud on the part of those agents, or neglect involving hazard of serious public loss, to escape detection. I renew, however, the recommendation, hereto fore made by me, of the enactment of a law declaring it felony on the part of public of ficers to insert false entries into their books of record or account, or to make false returns and also requiring them on the terminalion of their services to deliver to their successors all books, records, and other objets of a pub lic nature in their custody. Derived as our public revenue is, in chief part, from duties on imports, its magnitude affords gratifying evidence of the prosperty, not only of onr commerce, but of the other great interests upon which that depends. The principle that all moneys not requir ed for the current expenses of the govern ment should remain for active employment in the hands of the people, and the conspicu ous fact that the annual revenue from all sources exceeds, by many millions of dollars, the amount needed for a prudent and econo mical administration of public affairs, cannot fail to suggest the propriety of an early re vision and reduction of the tariff of duties on imports. It is now so generally conceded that the purpose of revenue alone can justi fy the imposition of duties on imports, that, in readjusting the impost tables and sche dules, which unquestionably requires essen tial modifications, a departure from the priri ciples of the present tariff is not anticipated. The army, during the past year, has been ac tively engaged in defending.the Indian frontier the state of the service permitting but Jew, and small garrisons in our permanent fortifications. The ad ditional regiments authorized at the last session of Congress have been recruited and organized, and a large portion of the troops have already been sent to the field. All the duties which devolve on the military establishment have been satisfactorily performed, and the dangers and the privations in cident to the character of the service required of our troops have furnished additional evidence of their courage, zeal and capacity, to meet any requisition which their country may make upon them. For the details of the military operations, the distribution of thli troops, and additional pro visions required for the military service, I refer to the report of the Secretary of War and the accom panying documents. Experience, gathered from events which have transpired since my last annual message. has but served to confirm the opinion then:expressed:of the propriety of making provisions,. by a retired list, for disabled officers, and for increased compensa tion to the officers retained on the list .for active duty. All the reasons which existed, when these measures were reccommended on former occasions, continue without modification, except so far as cir cumstances have given to some of them additional force. The recomendations, heretofore made fora par tial reorganization of the army, are also renewed. The thorough elementary education gi wen to those officers, who commenced their service with the grade of cadet, qualifies them, to' a considerable extent, to"perform the duties of every arm of the service : but to give the highest efficiency to artil ery requires the practice and special etudyof many years ; and it is slot, therefore, beP4eved to be ad- visable to maintain, in time of peace, a larger force of that arm than can be usually employed in the ji...t p duties appertaining ' e service of the field and siege' rtillery. A, The duties e staff iit all its various branches belong to the movements of the troops, and the efficiency of an army in the field would materially depend upon the ability with which those duties are discharged. It is not, as in the ease of the ar tillery, a speciality, but requires, also, an intimate knowledge of the duties of an officer of the line, and it is not doubted that, to complete the educa• tion of an officer for either the line or the general staff, it is desireable that he shall have served in both.; With this' view, it was recommended on a former occasion that the duties of the staff should be mainly performed by details from the line ; and with conviction of the advantages which would re sult from such a change, it is again presented for the consideration of Congress. • NAVY. The report of the Seeretary of the Navy, here with submitted, exhibits in full the naval opera tions of the past year, together with the present condition of the service, and it makes suggestions of further legislation, to which your attention is The construction of the six steam frigates, for which appropriations were made by the last Con gress; has proceeded in the most satisfactory man ner, and with such expedition, as to warrant the belief, that they will be ready for service !early in the coming spring. Important as this addition to our naval force is, it still remains inadequate to the contingent exigencies of the ,pfotection of the extensive sea coast and vast commercial interests of the United States. In view of this fact, and of the acknowledged wisdom of the policy of a grad ual and systematic increase of the navy, an appro priation is recommended for the construction of six steam sloops of-yrar. In regard to the steps taken in execution of the act of Congress to promote the inefficiency of the navy, it is unnecessary for me to say more than to express entire concurrence in the observations on that subjeot presented by the Secretary in his re port. 1311021103 It will be perceived, by the report of the Poet master General, that the gross expenditure of the department for the last fiscal year was nine million nine hundred and sixty-eight thousand three hun dred and forty-two dollars, and the gross receipts seven million three hundred and forty-two thou sand 'one hundred and thirty-six dollars, making anexcess of expenditure over receipts of two mil lion six hundred and twenty six thousand two hundred and six dollars ; and that the cost of mail transportation during that year was six hundred and seventy-four thousand nine hundred and fifty two dollars greater than the previous year. Muoh of the heavy expenditures to whichlthe treasury is thus subjected, is to be ascribed to the large quan tity of printed matter conveyed by the mails, ei ther franked or liable to no postage by law, or to very low rates of postage compared with that char ged on letters, and to the great cost of mail servioe on railroads and by ocean steamers. The sugges tions of the Post Master General on the subject deserve the consideration of Congress. MEM The report of the Secretary of the Interior will engage your attention, as well , for useful sugges • tions it contains, as for the interest and importance of the subjects to which they refer. The aggregate amount of public land sold du ring the last fiscal year, located with military scrip or land warrants, taken up under grants for roads, and selected as swamp lands by States, is twenty four million five hundred and fifty-seven thousand four hundred and nine acres; of which the portion sold was fifteen millions seven hundred and twenty nine thousand five hundred and twenty four acres, yielding in receipts the sum of eleven million four hundred and eighty five thousand three hun dred and eighty dollars. In the same period of time, eight million seven hundred and twenty three thousand eight hundred and fifty four acres have been surveyed ; but, in consideration of the quan tity already subject to entry, no additional tracts have been brought into market. The peculiar relation of the general government to the District of Columbia renders it proper to commend to your care not only its materials, but also its moral interests, including education, more especially in those parts of the district outside of the cities of Washington and Georgetown. The commissioners appointed to revise and codify the laws of the District have'made such progress in the performance of their task, as' to insure its completion in the time preseribed by the act of Congress. Information has recently been received, that the peace of the settlements in the Territories of Ore gon and Washington is disturbed by hostilites on the part of the Indians, with indications of exten sive combinations of a hostile character among the tribes in that quarter, the more serious in their possible effect by reason of the undetermined for eign interests existing in those Territories, to which your attention has already been especially invited. Efficient measures have been taken, which, it is believed, will restore quiet, and afford protection to our citizens. In the Territory of Kansas there have been acts prejudicial to good order, but as yet none have oc.• curred under circumstances to justify the interpo sition of the Federal Executive. That could only be in case of obstruction to Federal law, or of or ganized resistance to territorial law, assuming the character of insurrection, which, if it should occur, it would be my duty promptly to overcome and suppres. I cherish the hope, however, that the occurrence of any such untoward events will be prevented by the sound sense of the people of the Territory, who, by its organic law, possessing the right to determine their own domestic institutions, are entitled, while deporting themselves peacefully. to the free exercise of that right, and must be pro tected in the enjoyment of it, without interference on the part of the citizens of any of the States. The southern boundary line of this Territory has never been surveyed and established. 'The rapidly extending settlements in that region, and the fact that the main route between Independence ' in the State of Missouri, and New Mexico, is contaguous to this line, suggest the probability that embarras ing questions of jurisdiction may consequently arise. For these and other considerations, I com mend the subject to your early attention. CONSTITUTIONAL THEORY OF TEE GOVERNMENT. I have thus passed in review the general state of the Union, including such particular concerns of the federal government, whether of domestic or foreign relation, as it appeared to me desirable and useful to bring to the special notice of Congress. Unlike the great states of Europe and Asia, and many of those of America, these United States are wasting their strength neither in foreign war nor domestic strife. Whatever of discontent or public dissatisfaction exists, is attributable to the imper fections of human nature,.or is incident to all gov ernments, however perfect, which human wisdom can devise. Such subjects of political agitation, as occupy the public mind, consist, to a great ex tent, of exaggeration of inevitable evils, or over zeal in social improvement, or mere imagination of grievance, having but remote connexion with any of the constitutional functions or duties of the fede ral government. To whatever extent these ques tions exhibit a tendency menacing to the stability of the constitution, or the integrity of the Union, and no farther, they demand the consideration of the Executive, and require to be presented by him to Congress. Before the Thirteen Colonies became a confede ration of independent States, they were associated duly by community of transatlantic origin, by geographical position, and by the mutual tie of com mon dependence on Great Britain. When that tie was sundered, they severally assumed the powers and rights of absolute self-governmeat. The municipal and social institutions of each, its laws of property and of personal relation, even in its political organisation, were such only as each one choose to establish, wholly without interference from any other. In the language of the Declara tion of Independence, each State had "full power to levy war, conclude peace, contract alliances, es tablish commerce, and to do all other acts and things which independent States may of right do." The several colonies differed in climate, in soil, in natural productions, in religion, in system of edu cation, in legislation, and in the forms of political administration ; and they continued to differ in these respects when they voluntarily allied. them selves as States to carry on the war of the revolu tion. The object of that war was to disenthral the United Colonies from foreign rule, which had proved to be oppressive, and to separate them permanently from the mother country : the political result was the foundation of a federal republic of the free white men of the colonies, constituted, as they were, in distinct, and reciprocally independent State governments. As for the subject races, whether Indian or African, the wise and brave statesmen of that day, being engaged in no extra vagant scheme of social change, left them as they were, and thus preserved themselves and their pos terity from the anarchy, and the ever-recurring civil wars, which have prevailed in other revolu tionized European colonies of America. When the confederated States found it convenient to modify the condition of their association, by giving to the general government direct access, in some respects, to the people of the States, instead of confining it to action on the States as such, they proceeded to frame the existing constitution, ad hering steadily to one guiding thought, which was, to delegate only such power as was necessary and proper to, the execution of specific purposes, or, in other words, to retain as much as possibte, consist ently with those purposes, of the independent pow ers of the individual States. For objects of com mon defence and security, they intrusted to the general government certain carefully defined func tions, leaving all others as the undelegated rights of the' separate independent sovereignties. —Buonelisx. Such is the constitutional theory of our govern ment, the practical observance of which has car ried us, and us alone, among modern republics, through nearly three generations of time without the cost of one drop of blood shed in civil war.— With freedom and concert of action, it has enabled us to contend successfully on the battle-field against foreign foes, has elevated the feeble colonies into powerful States, and has raised our industrial pro ductions, and our Commerce which transports them, to the level of the richeit and the greatest nations of Europe. And the admirable adaptation of our political institutions to their objects, combining local self-government with aggregate strength, has established the practicability of a government like ours to cover a continent with confederate States. The Congress of the United States is, in ef fect, that congress of sovereignties, which good men in the Old World have sought for, but could never attain, and which imparts to America an exemption from the mutable eagues for common action, from the wars, the mutual invasions, and vague aspirations after the balance of power, which convulse from time to time thecgovernments of Europe. Our co-operative action rests in the conditions of permanent confederation prescribed by the constitution. Our balance of power is in the separate reserved rights of the States, and their equal representation in the Senate. That independent sovereignty in every one of the States, with its reserved rights of local self government assured to each by their co-equal power in the Senate, was the fundamental con dition of the constitution. Without it the Union would never have existed. However de sirous the larger States might be to re-organ ize the government so as to give to their popu lation its proportionate weight in the common counsels, they knew it was impossible, unless they conceded to the smaller ones authority to exercise at least a negative influence on all the measures of the government, whether legisla tive or executive, through their 'equal repre sentation in the Senate. Indeed, the larger States themselves-could not have failed to per ceive that the same power was equally neces sary to them, for the security of their own do mestic interests against the aggregate force of the general government. In a word, the original States went into the permanent league on the agreed premises, of exerting their com mon strength for the dfence of the whole, and of all its parts ; but of utterly excluding all capability of reciprocal aggression. Each sol emnly bound itself to all the others, not to un dertake, nor permit an encroachment upon, or intermeddling with, another's reserved rights. When it was deemed expedient, particular rights of the States were expressly guarantied by the constitution ; but, in all things beside, these rights were guarded by the limitation of the powers granted, and by express reservation of all powers not granted, in the compact of union. Thus, the great power of taxation was limited to purposes of common defence and general welfare, excluding objects appertaining to the local legislation of the several States; and those purposes of general welfare and Commas defence were afterwards defined by specific enumeration, as being matters only of corelation between the States themselves, or between them and foreign governments, which because of their common and general nature, could not be left to the separate control of each State. Of the circumstances of local condition, in terest and rights, in which a portion of the States, constituting one great section of the Union differed from the rest, and from another section, the most important was the peculiarity of a larger relative colored population in the southern than in the northern States. A population of this class, held in subjection existed in nearly all the States, but was more numerous and of more serious concernment in the South than in the North, on account of natural differences of climate and production; and it was foreseen that, for the same reasons, while this population . would diminish, and, sooner or later,, ; cease to exist, in some States, it might increase in others. The peculiar character and magnitude of this question of local rights, not in material relations only, but still more in socritl ones, caused it to enter into the special stipulations of the constitu tion. Hence, while the general government, as well by the enumerated powers granted to it, as by those not enumerated; and therefore re fused to it, was forbidden to touch this matter in the sense of attack or offence, it was placed under the general safeguard of the Union, in the sense of defence against either invasion or domestic violence, like all other local interests of the several States. Each State expressly stipulated, as well for itself as for each and all of its citizens, and every citizen of each State became solemnly bound by his allegiance to the constitution, that any person, held to ser vice or labor in one State, escaping into anoth er, should not, in consequence of any law or regulation thereof, be discharged from such service or labor, but should be delivered up on claim of the party to whom such service or la bor might be due by the laws of his State. Thus, and thus only, by the reciprocal guaranty of all the rights of every State against interference on the part of another, was the present form of government establish ed by our fathers and transmitted to us; and by no other means is it possible for it to exist. If one State ceases to respect the rights of another, and obtrusively intermeddles with its local interests,—if a portion of the States as sume to impose their institutions on the others, or refuse to fulfil their obligations to them,— we are no longer united friendly States, but distracted, hostile ones, with" little capacity left of common advantage, but abundant means of reciprocal injury and mischief. Practically, it is immaterial whether aggres sive interference between the States, or delib erate refusal on the part of any one of them to comply with constitutional obligations, arise from erroneous conviction or blind prejudice, whether it be perpetrated by direction or indi rection. In either case, it is full of threat and of danger to the durability of the Union. CONSTITUTIONAL RELATIONS OF SLAVERY Placed in the office of Chief Magistrate as the executive agent of the whole country, bound to take care that the laws be faithfully executed, and specially enjoined by the con stitution to give information to Congress on the State of the Union, it, would be palpable neglect of duty on my part to pass over a sub ject like this, which, beyond all things at the present time, vitally concerns individual and public security. - It has been a matter of painful regret to see States, conspicuous for their services in found ing this Republic; awl equally sharing its ad vantages, disregard their constitutional oblige 'dons to it.. 2 Although .conscious of their in ability to heal admitted and palpable social evils of their own, and which are completely within their jurisdiction, they engage in the offensive and hopeless undertaking of reform ing the domestic institutions of other .States wholly beyond their control and authority. In the vain pursuit of ends, by them entirely un attainable, and which they may tilt legally at tempt to compass, they peril the very existence of the constitution, and all the countless benefits which it has conferred. While the people of the southern States confine their at tention to their own affairs, not presuming officiously to intermeddie with the social insti tutions of northern States, too many of the inhabitants of the latter are permanently organized in associations to inflict injury on the former, by wrongful acts, which would be cause of war as between foreignpowers; anti only foil to be such in our system, because perpetrated under cover of the Union. It is impossible to present this subject as truth and the occasion require, without uoti cing the reiterated, but groundless allegation, that the South has persistently .asserted claims and obtained advantages in the practical ad ministration of the general goverzanent, to the prejudice ot the North, and in which• the latter has acquiesced. That is, the Staten, which either promote or tolerate attacks on the rights of persons and of property in other States, to disguise their own injustice, pretend or imag ine, and constantly aver, that they, whose con stitutional rights are thus systematically as sailed, are themselves the aggressors. At the present time, this imputed aggression, resting, as it does, only in the vague, declamatory charges of political agitators, resolves itself into misapprehensiot., or misinterpretation., of the principles and fat its of the politica tl organi zation of the new Territories of the United States. What is the voice of history ? When the ordinance which provitled for the government f the Territory Dortim eat of the riv,v Ohio, and for its eventual sub-divisto. into new States, was adopted in the Congress of the confederation, it is not to be supposed .that the question of future relative power, as be tween the States which retained, and those which did not retain, a numerous c bored pop ulation, T escaped notice, or failed to be onsid ered. And yet the concession o that vast territory to the interests and opinions of the Northern States, a territory now the seat of five among the largest members of the Union, was, in great measure, the act of the State of Virginia and of the South. When Louisiana was acquired by the United States, it was an acquisition ,not less to the North thou to the South ; for whicli t it was im portant to the country at the mo th of the river Mississippi to become the emporium of the country above it, so also it was oven more important to the whole Union to ha' that em porium; and although the new pr vince, by reason of its imperfect settlement, was mainly regarded as on the Gulf of Mexico,in Ifact, it ex tended to the opposite boundaries ofithe United States,with far greater breadth aboTe than be low, and was in territory, as in everything else, equally at least an accession to the north ern States. It is mere delusion, th-refore, to speak of Louisiana as acquisition i. the spe cial interest of the South. The patriotic and just men, who .articipated in that act, were influenced by motives far above sectional jealousies. It wal in truth the great event, which, by comple ing for us the possession of the valley of the Mississippi, with commercial access to the Gulf 'of Mexico, imparted unity and strength to the whole con federation and attached together by indissolu ble ties the East and the West, as ell as the North and the South. - As to Florida, that was but a ander by Spain to the United States of territory on the east side of the river Mississippi, ih exchange for large territory, which the United States transferred to Spain on the west side of that river, as the entire diplomatic history of the transaction serves to demonstrate. Moreover, it was an acquisition demanded by the com mercial interests and the security of the whole Union. In the meantime, the people of the United States had grown up to a proper consciousness of their strength, and in a brief ttest with France, and in a second serious was with Great Britain, they had shaken off all'which remain ed of undue reverence for Europe, I and emer ged from the atmosphere of those transatlantic influences which surrounded the infant Repub lic, and had begun to turn their attention to the full and systematic development of the in ternal resources of the Union. Among the evanescent controversies of that period, the most conspicuous was the question of regulation by Congress of the skial condi tion of the future States to bo founded in the territory of Lottiiiian& The , rainance, for th Ae ordinance, for the govennient of the territory north-west of the river 'Ohio, had contained a provision, which prohibited the use of servile labor therein, subject to the con dition of the extradition of " fugitives from ser vicei) due in any other part of the U ited States. Subsequently to the adoption of t e constitu tion, this provision ceased to remai as a law; for its operation as such was absol tely super seded by the constitution. But the recollection of the fact excited the zeal of social propa gandism in some sections of the confederation; and when a second State, that df Missouri, came to be formed in the territory of Louisiana, propo ition was made to extend 6 the latter territory the restriction originallyiapplied to the country situated between, the rivers Ohio and Mississippi. Most questionable as was this proposition in. all its constitutional relations, nevertheless it. received the sanction of Congress] with some slight modifications of line, to save the exist ing rights of the intended now State. It was reluctantly' acquiesced in by sout lam States as a sacrifice to the cause of peace and of the Union, not only of the rights stiputed by the treaty of Louisiana, but of the rinciple of equality among the States guaranteed by the constitution. It was received by the northern States with angry and resentful co damnation and complaint, because it did not oucede all which they had exactingly demands . Having passed through the forms of legisla ion, it took its place in the statute book, standing open to repeal, like any other act of doubful consti tutionality, subject to be pronounced ; null and void by the courts of law, and possessing no possible efficacy to control the rights of the States, which might thereafter b t organized out of any part of the original territory of Louisiana. In all this, if any aggression there were, any innovation upon pre. existing rights, to which portion of the Union are chargeable? - This controversy passed away casion, nothing surviving it save letter of the statute. But, long afterwards, when, by accession of the Republic of Tex, States were to take their next gate rial greatness, a similar contingen. and became the occasion for syst. tempts to intervene in the domest 0110 section of the Union, in defin rights as States, and of the stipuh constitution. These attempts assu tical direction, in the shape of per deavors, by some of the repress both houses of Congress, to deprive. ern States of the supposed benefit] visions of the act authorizing the of the State of Missouri. But, the good sense of the people, and the vital force of the constitution, triumphed ove sectional prejudice, and the political errors of the day, and the State of Texas returned to the Union as she was, with social institutions which her people had chosen for themselVea, and with express agreement, by the re•annexing act, that she should be susceptible of subdivision into a plurality of States. Whatever advantage the people of theßouth ern States, as such, gained by this, were far inferior in results, as they unfolded in the pro gress of time, to those which sprang from pre vious concessions made by the SoUth. To every thoughtful friend of the Union,— to the true lovers of their country 4 ,—to all who longed and labored for the full seccess of this great experiment of republican institutions,— it was cause of gratulation that such an oppor tunity occurred to illustrate our advancing power on this continent, and to furnish to the world additional assurance of the strength and stability of the constitution. Who would wish to see Florida still a European colony? Who would rejoice to hail Texas as a lone star, in stead of one in the galaxy of States? Who does not appreciate the incalculable benefits of the acquisition of Louisiana? And, yet nar row views and sectional purposes would inevi tably have excluded them all from the'Union. But another struggle on the same point en sued, when our victorious army returned from Mexico, and it devolved on CongresS to provide for the territories acquired by the treaty of Guadalupe Hidalgo. The great ...relations /of the subject had now become distinct and clear to the perception of the public miind t which appreciated the evils of sectional, controversy upon the question of the admission of new States. Is that crisis intense solicitude perva ded the nation. But the patriotic impulses of the popular heart, guided by the admonitory advice of the Father of his Country rose su perior to all the difficulties of the Pncorpora. tion of a new empire into th e Union. In the counsels of Congress there was mani fested extreme antagonism of opmion 'and ac- Sou between some representatives, who sought by the abusive and unconstitutional employ meat of the legislative powers of the govern ment to interfere in the condition of the in choate K'ntes, and to impose their own social theories upon the latter ; and other represee tatives, who repelled the interpcisitiou of the goners' government in this respedt, and main tained the self-constituting rights 'of the States In truth, the thing attempted was,. is form alone, action of the general goveinment, while in reality it was the endeavor,", by abuse of legislative power, to force the ideas of internal ' policy, entertained in particularj States, upon allied independent States. , Once more the Constitution and the Union triumphed signally. The new Tdrritories were organized without restrictions oil' the disputed points, and were thus left to judge in that par ticular for themselves ; and the (sense' of con stitutionar faith proved vigorons enough iu Congress not only to accomplish this primary (Concluded on Fourth J ose.) MEE ith the cc he dormant le proposed the United. in territo fr occurred, imatircd at uffairs of .nee of their Itttions of the ukted o - Jed a prac evering en utatives, in the South of the pro organization