gpe abf honorable negotiiition. If accomplished, the lust relic of the . t \e-trnde would instantly disappear. ] i not, if could, acquire Cuba in - manner. This is due to our national All the territory which we hare e the origin of the Government v fair purchase, from France, Spain or by the free and voluntary act ■ndent State of Texas, in blending > with onr own. This course we : pursue, uuless circumstances should u h we do not now anticipate, render-! ,arture clearly justigable, under the i and overruling law of self-preserva- I-!.ind of Cuba from its geographical innnth the mouth of the Mississ- j its innuence and annually increasing f i_Mi and coastwise, from the valley j ■ , fife river, now embracing half the S'ntes of the Union. With that Is-^ J , r the dominion of a distant foreign j. tij. trade, of vital importance to these ; • . i- exposed to the danger of being des-' . time of war, and it has hitherto been •ted to perpetual injury and annoyance > •' • nr. Our relations with Spain, ou:,'ht to lie of the most friendly cliurac ,r always be placed in jeopardy, whilst , voting 15 ilonial Government over the Is . ,| Ki il nmain in its present condition. \ ; ist the yossess'ou of the island would be , t ji,j rt nice to the United States its val -j,;iiti i<, comparatively, unimportant.— . ,ij was the relative situation of the parties | ;!ip trri at Napoleon transferred Louisiana I nitcii States. Jealous, as he ever was, 1 national honor and interests of France, throughout the world has imputed am to him, f>r accepting a pecuniary equiv ; for this cession. i■„ publicity which has been given to our r hegotiatious upon this subject, and the appropriation which may be required to tin purpose, render it expedient, before r .„'.g a; tiier attempt at negotiation, that 1 ; iitv the whole subject before Congress 1 ;is especially necessary, as it may become -sable to success that I should be in irx-teil with the means of making an advance Spanish Goqernmeut immediately after , ,'iiii.g of the treaty, without aw aiting the ' ;iti :i of it by tlie Senate. Inm eneour : io make this suggestion by example of Mr Jefferson, previous to the purchase of Lou . , iafr a France, and by that of Mr. I'oik , . w of the acquisition of Territory from Mexico. I refer the whole subject to Congress, 1 commend it to their careful consideration. I repeat the recommendation made in my . <>f December last, in favor of an ap • ration "to be paid to the Spanish Gov. r the purpose of distribution among the j aunts in the Amistad case." President ; ; first made a similar recommendation in aibiT, 1547, and it was repeated by my mediate predecessor in December, 1853. I •t rtain no doubt that iudemnity is fairly due Tj tii.se claimants under our treaty with Spain t the 27th October, 1795 ; and whilst de aling justice, we ought to do justice. An iproprlation promptly made for this purpose could not fail to exert a favorable influence on :r negotiations with Spain. OIK RELATIONS WITH MEXICO. Onr position in relation to the independent States south of us ou this Continent, and especially those within the limits of North America, is of a peculiar character. The nortli en iMtuidary of Mexico is coincident with our • *:i southern boundary from ocean to ocean ; and we have necessarily a deep interest in all . at concerns the well-being and the fate of so tar a neighbor. We have always cherished lite kindest wishes for the success of that re public, and have indulged the hope that it Nit at last, after all its trials,enjoy peace and :■* -pcrity under a free and stable Government. W>- have never hitherto interfered, directly or ilirectlv, with its internal affairs, and it is a city which we owe to ourselves to protect the Vagritv of its territory, against the hostile in rhri'tice of any other power. Our geographical ensitiou, our direct interest in all that concerns Mexico, and onr well-settled policy in regard ; the North American Continent, render this an indbpens&blc duty. Mexico has been in a state of constant re- T ution almost ever since it achieved its inde i mlence. One military leader after another ha*usurped the Government in rapid succession, ami the various Constitutions from time to time united have been set at nought almost as soon cs thev were proclaimed. The successive Gov ernments have afforded no adequate protection, other to Mexican citizens or foreign residents, against lawless violence. Heretofore, a sei zure of the capital by a military chieftain has been generally followed by at least the nominal mission of the country to his rule for a brief priod, but not so at the present crisis of M xican affairs. A civil war has been raging sometime throughout the Republic, between r Central Government at the city of Mexico, which lias endeavored to subvert the Consti tution last framed by military power, and those *homaintain the authority of that Constitu tion. The antagonist parties each hold pos h- .11 <>f different States of the Republic, and hi? fortunes of war arc constantly changing. Meanwhile, the most reprehensible means have nil employed by both parties to ex tort money ' ui foreigners as well as natives, to carry on ! < ruinous contest. The truth is, that this bt country, blessed with a productive soil and "benign climate, has been reduced by civildis 'l - >ii to a condition of almost hopleless ftiarchy and imbecility. It would be in vain or the Government to attempt to enforce pay out in money of ihc claims of American cit hens, now amounting to more than ten million dollars, against Mexico, because she is desti 'J'e i.f all pecuniary means to satisfy these de mands. Our Inte Minister was furnished with ample f-' .vtrs and instructions for the adjustment of a pending questions with central government ' Mix o, and he performed his duty which if, ai and ability. The claims of our citizens, k -a? of them arising out of the violation ot au provision of the treaty of Guadelupe Hidalgo, and others from gross injuries to per iuus as well as property, have remained mire ur ' -H'd and even unnoticed. Remonstrance! -ainst these grievances have been addressed •i.'diout effect to that Government. Meantime j'- 1 various parts of the Republic, instances have e n nnrnerious of the murder, imprisonmenl 1 plunder of our citizens, by different parties ' :i uiig and exercising a local jurisdiction; but e central Government, although repeatedly -■>td thereto, have made no effort either tc : "h the authors of these outrages or to pre " - their recurrence. No American citizen vi-it Mexico on lawful business withoul 'Uent danger to his person and property ' is no adequate protection to either ;am ■ s respect our treaty with that RenublU s -iaoxt, a, dead letter. This state of affairs was brought to a crisis in May last by the promulgation of a decree levying a contribution pro rata upon all the capital in the Republic, between certain specifi ed amounts, whether held by Mexicans or foreigners. Mr. Forsyth, regarding this decree in the light of a " forced loan," formally pro tested against its application to his couutrymeu, and advised them not to pay the contribution but to suffer it to be forcibly exacted. Acting upon this advice, an American citizen refused to pay the contribution, and his property seized by armed men to satisfy the amount. Not con tent with this the Government proceeded still further, and issued a decree banishing hi in from the eouutry. Our Minister immediately noti fied them that if this decree should be carried into execution, he would feel it to be his duty to adopt " the most decided measures that be long to the powers and obligations of the rep resentative office." Notwithstanding the warn ' ir.g, the banishment was enforced, and Mr. Forsyth promptly aunounced to the Govern ment the suspension of the political relations of his legation with them, until the pleasure of his own Government should be ascertained This Government did not regard the contri bution imposed by the decree of the 15th of May last to be in strictness a " forced loan," ! and as such prohibited by the tenth article of ! treaty of 1820 between Great Britain and Mexico, to the benefits of which American cit izen are entitled by treaty ; yet the imposition of the contribution upon foreigners was con-id ered an unjust and oppressive measure. Besides, j internal factions in other parts of the republic i were at the same time levying similar exactions j upon the property of our citizens, aud interrupt- ] ing their commerce. There had been an entire failure on the part of our Minister to secure redress for the wrongs our citizeus had eudured notwithstanding his persevering efforts. And j from the temper manifested by the Mexican j Government, he had repeatedly assured us that no favorable change could be expected until the j United States should "give striking evidence of their will and power to protect their citizens," , and that " severe chastening is the only earthly remedy for our grievances." From this state ment of facts it would have been worse than idle to direct Mr Forsyth to retrace his steps and resume diplomatic relations with that Gov ernment ; and it was, therefore, deemed proper i to sanction his withdrawal of the legatiou from the city of Mexico. Abundant cause now undoubtedly exists for a resort to hostilities against the Government still holding possession of the capital. Should they succeed in subduing the Constitutional forces, all reasonable hope will then have ex pired of a peaceful settlement of our difficulties. On the other hand, should the Constitution al party prevail, and their authority by estab iidied over the republic, there is reason to i hope that tliey will be animated by a less un friendly spirit, and may grant that redress to American citizens which justice requires, so far as they may possess the means. But for this expecttaion.l should at once have recommended to Congress to grant the necessary power to the President to take possession of a sufficient portion of the remote and unsettled territory of Mexico, to be held in pledge until our in- : juries shall be redressed and our just demands ,he satisfied. We have already exhausted every milder means of obtaining justice. In such a ; case, this remedy of reprisals is recognized by j the law of nations, not only as jnst to itself, i | but as a means of preventing actual war. But there is another view of our relations • with Mexico, arising from the unhappy condi ; tion of affairs along our Southwestern frontier j which demands immediate action. In thut > remote region, where there are but few white inhabitants, large bands of hostile and pre datory Indians roam promiscuously over the t Mexican States of Chihuahua and Sonora and 1 our adjoining Territories. The local Govern ment of these States are perfectly helpless, and i are kept in a state of constant alarm by the L Indians. They have not the power, if they ; possessed the will, even to restrain lawless - 1 Mexicans from passing the border and com -1 mitting depredations on our remote settlers. — s A state of anarchy and violence prevails ] 1 throughout that distant frontier. The laws j s' are a dead letter, and life and property are wholly insecure. For this reason the settle - ■ ment of Arizona is arrested, whilst it is Of great j - ; importance that a chain of inhabitants should r ' extend all along its southern border, sufficient fur their own protection and that of the Unit- I e ed States mail passing to and from California. ! i Well-founded apprehensions are now -; ed, that the Indians,and wandering Mexicans equally lawless, may break up the important , ! stage and postal communication recently estab lished between our Atlantic and Uacific pox 's sessions. The passes very near to the Mexican ! boundary, throughout the whole length of f Arizona" I can imagine no possible remedy f for these evils, and no mode of restoring law r j and order on that remote and unsettled frontier, i but for the Government of the United States to assume a temporary protectorate over the - northern portions of Chihuahua and Sonora, i' and to establish military post* within the same; - and this is earnestly recommended to Congress. - This protection may be withdrawn, as soon as 1 local Governments -hall be established in these Mexican States, capable of preforming their j duties to the United States, restraining the y lawless and preserving peace along the border, i 1 do not doubt that this measure will be s viewed in a friendly spirit by the Governments 1 and people of Chihuahua and Sonora, as it will i- prove equally effectual for the protection of s their citizens ou that remote and lawless fron n tier, as for citizens of the United States. ARIZONA. And in this connection permit me to recall a your attention to the condition of Arizona. — i- The population of that Territory, numbering, :- as is alleged, more than ter. thousand souls, arc practically without a Government, with c out laws, and without any regular admiuistra f tion of justice. Murder and other crimes are t committed with impunity. This state of things li calls loudly for redress ; aud I, therefore, re i, peat my recommendation for the establishment u of a Territorial Government over Arizona, c j [The President then passes to the considera •- tion of our relations with the States of Central i- America. The transit route, controlled by is Costa Rica'and Nicaragua,he declares to be of d too great importance to the commerce of the e world to be interrupted by the civil wars and c revolutionary outbreaks whichjiave sofiequent it ly occurred in that region, and it is the duty ot s ' other notions, while respecting the sovereignty t of these States, to require that the interruption y shall not take place. The stake is too irupor o tant, also, to be left at the mercy of rival corn s' panies, claiming to hold conflicting contracts n with Nicaragua. The Government of the I ni it ted States will not be satisfied with less than 7. this. They would not, if they could derive any d advantage from Nicaragua transit, not com c tnon to the rest of the world. Its neutrality , uiid protection for the common u:e of ail nations is their only object. They have no objection that Nicaragua shall demand aud receive a fair compensation from companies and individuals who may traverse the route ; but they insist that it shall never be closed again by an arbi trary decree, as it was by the] Walker-Rivas government. The President refers to the Can-Yrissari treaty, which Nicaragua has failed to ratify, because of the provision authorizing the Uni ted States to employ force to keep the route open, in case Nicaragua should fail to perform her duty in this respect. lie concludes this portion of his Message by asking authority from Congress to employ the land and naval forces of the United States in preventing the transit from being obstructed or closed by law less violence, aud in protecting the lives of American citizeus traveling thereupon. We need say nothing of the importance of this demand, it speaks for itself. A similar necessity exists for the passage of such an net, for the protection of the Panama and Teliuantepec routes. The President discusses some length the claims the United States has against Nica ragua, Costa Rica, and New Granada, and also alludes to the Paraguay expedition. He then comes to the consideration of the 1 depressed condition of the industry of the country, lie adds but little to what he said on the subject in his last annual message Our manufacturers have everywhere suffered in the late revulsion; but this was not because of the tariff of 1857. The same ruinous consequences , would have followed in the United States, under the tariff of 1846. They were the inevitable result of our unsound and extravagant system of bank credits and inflated currency, and the periodical revulsions to which we have been subjected must continue to return at intervals, ; so long as our present unbounded system of bank credits shall prevail. The President there- j fore, renews the recommendation in favor of the passage of a uniform bankrupt law, appli cable to banking institutions. This is all the power over the subject which lie believes the | Federal government possesses.] THK TARIFF. In connect on with this snlijeet, it Is proper to refer to our financial condition, The same causes which have I produced pecuniary distress throughout the country .have 1 so reduced the amount of imports from foreign countries, ; that the revenue has proved inadequate to meet the ne- i cersary expenses ot the Government. To supply the de ficiency. Congress, hy the act of lleo. 'ill. 1557. authorized the issue of i'.'h.OoO.nOO of Treasury notes, aud. this pro* ing inadequate, they authorized, l>y the act of June 14, 1558,a loan of $'2U,0()0,00," to he applied to the payment of appropriations made by law."'- No statesman would advise that we should go on in creasing the national debt to meet the ordinary expenses J of the Government. This would be amod ruinous policy, j In case of war, our credit must be our chief resource, at j least for the first year, and this would be greatly impair- ' ed by having contracted a large debt in time of pea> e. It i is our true policy to increase our revenue so as to equal | our expenditures. It would be ruinous to continue to | borrow. Besides, it may be proper to observe that the j incidental protection thus alf'orded by a revenue tarifl would, at the present moment, to some extent, increase j the confidence of the manufacturing intcrsts, and give a ] fresh impulse to our reviving business. To this, surely, i no one will object. In regard to the mode of assessing and collecting duties j under a revenue tariff, I have long entertained and ex- j pressed the opinion that sound policy requires this should j be done by specific duties, iu cases to which these can be i properly applied. They are well adapted to commodities j which are usually sold by weight or measure, and.which, from their nature, are of equal, or nearly equal value— Such, for example, are the articles of iron of different 1 classes, raw sugar, and foreign wines and spirits. In my deliberate judgment, specific duties are the t>est. ' if not toe only means ot securing the revenue against false I and fraudulent invoices, aud such has been the practice } adopted for this purpose by other commercial nations. — Besides, specific duties would afford to the American ma nufacturer the incidental advantages to which he is fairly entitled under a revenue tariff. The present system is a sliding scale to his disadvantage. Under it,when prices are high and business prosperous, the duties are high when he least requires their aid. On the contrary, wheh prices i fall, and he is struggling against adversity, "the duties arc ' diminished in the same proportion, greatly to his injury. ; Neither would there be danger thut a higher rate of du- j ty than that intended by Congress could be levied in the form of specific duties. It would be easy to ascertain the j average value of any imported article for a.series oi years and instead of subjecting it to an ad valorem duty at a certain rate per centum, to substitute iu its place au equi valent specific duty. By such an arrangement the consumer will not be in- , jured. It is true, he might have to pay a little more duty on a given article in one year; but if so, he would pay s little less in another, and in a series of years these would < counterbalance each other and amount to the same thing ( so tar as his interest is concerned. This inconvenience would be trifling when contrasted with the additional se curity thus afforded against frauds upon the revenue, in which every consumer is directly interested. I have thrown out these suggestions as the fruits of my own observations, to which Congress, in their better judgment, will give such weight as they may justly de ] serve. FIVAVCKS. The report of the Secretary of the Treasury will explain | in detail the o[u-rations of that department of the govern : ment. The receipts into the Treasury, from all sources, i for the fiscal year ending 30th June, I*sß, including the | Treasury notes authorized by the act of 23d l>ec. |sA7, were $70,273,8159 59, which amount, with the balance of i $17,710,111 27 remaining in the Treasury at the com j meneement of the year, made an aggregate for the ser i vice of the year of $*7,983,9x3 75. j The expenditures during the fiscal year ending June 20. Ixs*. amounted to $*1,5X5,607 76, of which $9,6X4.- ; 537 99 were applied to the payment of the public debt, 1 and the redemption of treasury notes with the i'.terest ! thereon, leaving in the Treasury on July 1,1X58, the com mencement of the present sscal year, the sum ot $6,398,- 316 10. The receipts into the Treasury during the first quarter of the present fiscal year, commencing the Ist ol July, 1858, including one half of the loan of $20,000,000, with the premium upon it, authorized by the aet of the 14th of June, I*s*. were $25,230,879 46. aud the estimated re ceipts for the remaining three quarters to the 3oth June, 1X59. from ordinary sources, are $38,500,000, making Un balance before stated an aggregate of $70,129,104 56. The public debt on the Ist of July. 1858, the commence ment of the present fiscal year, was $2.">.199,977 67. [The President then calls attention to the Reports of the Heads of the different Departments. The postal sys tern is not self-supporting, owing to the vast increase of mail service, the deficit growing larger every year. The Pacific Railroad next receives the consideration of l the ['resident, and he refers to his last message for his ! views upon the subject.] THK SI.AVF.It KCITO. On the 21st of August last, Lieut J. X. Maffit, of the i United States hrig Dolphin, captured the slaver Kcho, i (formerly the Putnam, of New Orleans.) near Kay Verde I on the coast of Cuba, with more than three hundred Af rican negroes on board. The prize, under the command of I.ient. Bradford, of the United States Navy, arrived .it i Charleston on the 27th of August, when the negroes, 306 I in nnmlier, were delivered into the custody of the United j States Marshal for the district of South Carolina. They | W ere first placed in Castle Pinckney, and afterwards in fort Snmpter, for safe keeping, and were detained there until the 19th of September, when the survivors, 271 in number, were delivered on board the United States stea mer Niagara, to be transported to the coast of Africa, un der til" > h rge of the agent o the United States, pursu n" to tin- provisions of the act ot the 3d of March. Ixl9. " in addition to the arts prohibiting the slave-trade."' Under the second section of this act, the President is "authoriz ed to make such regulations ns he may deem expedient, for the safe-keeping, support and removal beyond the li mits of the United States, of all such negroes, mulattoe*, or persons of color," captured by vessels ot the United States, as may be delivered to the Marshal of the district into which they are brought. " and to appoint a proper person or persons residing upon the oast of Africa, as agent or agents for receiving the negroes, mulattoes, or persons color, delivered from on board vessel* seized in the prosecution of the Slave-trade, by commanders of the United States' armed vessels." A doubt immediately arose as to the true construction of this act. It is quite clear from its terms that the Pre sident was authorized to provide " for the safe keeping, support and removal" of these negroes up till the time of their delivery to the agent on the Coast of Alrica : but no express provision was made for their protection and support after they had reached the place of their destina tion Still, an Agent was to be appointed to receive them iu Africa ; and it could not have been supposed that Con gress intended he should desert them at the moment they were received, and turn them loose on that inhospitable roast to perish for want of food, or become again the vic tims of the slave-trade. Had this been the intention of Congress, the employment of an Agent to receive them, who"is required to reside on the Coast, was unnecessary, and thev might have been landed by our vessels anywhere in Africa, and left exposed to the sufferings anil the fate which would certainly await them. Mr. Monroe, in his special message of the I