C. F :READ & H. R. FRAZI*It,'_EDVIIO*:
Mli
OTlkilooacvertol
Fellow atieens of the Sesek aied House of
Repre*atives : .
In obeilence to ;he command of the Con.
stitutiutt,-it has now become my duty "to
give to Congress information of the state of the
union, and recommend to their consideration
such measures" as 1 judge to , be "necessary
an d expedient."
But first, and above all, our thanks are due
to Almighty God for the numerous benefits
w hich he has bestowed upon this people;
and our united prayers ought .to ascend to
Him that He would continue 'to bless our
'great Republic in time to come as He has
'blessed it in time past. Since' the adjourn_
Iment of the last Congress our constituents
hare enjoyed an unusual degree of health.—
The earth has yielded her fruits abundantly;
and has bountifully rewarded the toil of the
husbandman. Our great staples have corn.
manded high 'prices, and up tilt within a Offer
period, our manufeeturing, mineral and me
chalicel operations have largely partaken of
the general prosperity. We have possessed
all the elements 'of material wealth- in rich
abundance, and yet, notwithstanding all- these
advantages, our country, in its monetary - in.
tcrest4 is at the present moment in a deplor
able conditioa. In the midst of unsurpassed
plenty
in all the Oroductkots of agriculture
and in all the elements of national wealth,
we find our manufactures suspended, our
public works retarded, our private enterprises
of different kinds abandoned, and thousands
of useful laborers thrown out of employment
and reduced to want. The revenue of the
Government, which is chiefly derived from
duties on imports from abroad, has been
greatly reduced, while the ippropriations
made by Congress at its last_ ilessiot . for the
cm rent fiscal year are very large in amouni.
Under these circumstances a loan may be
required before the close of your present
Session; but this, although deeply to be re
gretted, would prove it to be only' a slight.
misfortune when compared with the suffering
and distress prevailing among the people.—
With this the Government cannot fail to
deeply synipathize, though it may be without
the power to extend relief
It is our' uty to inquire what hits produced
such unfortunate results, and whether their
recurrence can be prevented I In all former
revulsions the blame might have been fairly
attributed to a variety of co-operating causes;
hut ititesio upon the present occasion. It is
fipp . arerift hat 'our existing misfortunes have
pi - weeded solely . from our extravagant and
Ni l / 4 tions system of paper currency and bunk
credits, exciting tin .people to wild specula
tions and gambling in stocks. These revul
sion must continue to recur at successive in—
tervals so long as the amount of paper cur. '
rencyand bank loans and discounts of the
country shall be left to the discretion
cif hundred irresponsible banking
institutions, which, from the very law of their
nature, will consult then interest of their stock.:
holdersrather thatithi -public welfare. .
The framers of the Constitution, when they
gave to Congress the power "to coin money
and to regulate the val i ye thereof," and pro
hibited the States from' coining money, emit
ting bills of credit, or 'making anything but
gold and silver coin a tender in payment of
debts, supposed that they had protected the
people against the evils-of an excessive and
irredeemable paper -currency. They are not
responsible fur the existing anomaly that a
government-endowed with the •sovereign at
tribute of-el:fining money and regulating the
value thereOf should have no power to pre
vent others-from driving this coin, out of the
country and filling up the channels of circu
lation with paper which does not represent
gold and -silver.
It is one of the highest and most responsi
ble duties of government to insure to the
people a sound ::Etreulating Medium, the
amount of which ought to be adapted with
the utmost possible wisdom and skill to the
minute& interhabtrade and foreign exchanges.
If this be either greatly above or greatly be
low the 'proper standard, the marketable -val
ue of every man's property is increased or
diminished in the tame proportion, and. injus
tice to individuals as well as incalculable
evils to to the community are the consequence.
Unfortunately, under the construction 'of
the Federal - Constitnthat, which has now pee-
Tailed too long to be awned, this important
and delicate duty-has been dissevered from
the coining power and virtually transferred
to more than fourteen hundred State banks,
acting independently of each other, and regu
lating their paper issues almost exclusively
by a regard to the
.present interest of their
stockholders. Eiercising the sovereign pow
er of providing a paper currency instead of
coin for the country, the first duty which
these banks owe to the public is to keep
sufficient amount ofgold and sliver to insure
the convertibility of their notes into coin at
all times and under all carcumitances. No
bank ought ever to be chartered without
such restriction on its bnsiness as to secure
this result. All other restrictions are com
paratively lain. This is the only true touch
stone, the only efficient regulator of paper
currency—tie :7:1.7 um which can guard the
public against over-issues and bank suspett
skies. As a collateral and eventual security
h is doubtless wise, and in all mutes ought to
be required, that 'banks shall bold an amount
of United States or Stets securities equal to
their notes in circulation, and pledged for
their redemption. This, however, furnishes
no adequate security against over-issues.
On the Contrary, it may be perverted to
inflate the ennency, indeed, it is possible
by this menus to convert all the debts of.the
United States 'and State Governments into
bank !taut 'without reference to the specie
required to redeem them. However valet&
ble these securities may be z itt themselves,
they cannot be eunverted into gold and silver
at the moment of pressure, as our experience
"teaches, in sufficient time to prevent tank
suspensions and the depreciation of bank
notes In England, which is to a considera
ble. extent a paper-money country, though
vastly behind our own in this respect,it was
deemed advisable, anterior to the act of Par
liament of 1844, whith wisely sellers:2d the ..
issue of notes from the banking department,
for the Bank of England alviays to keep on
hand gold and silver equal to ono third of its
combined circulation and deposits. If this
proportion was no more than sufficient to se
cure the convertibility of its liaise, with the
whole of Great Britain, and to Some Went
the Continent of Europe, ass fi eld for its
circulation, rendering it thnost, impossible
'hat, a sudden and in aie4iate run to a danger-
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one amount *hada be made upon it, the
same proportioft would certainly be insuffi
cient tnider our banking system.
Each of our fisurteen hundred banks has
but a limited circumference for its circulation,
and in the course of a very few days the de
positors and note-holders might demand
front such a bank a sufficient amount in spe
cie to compel it to - suspend, even althourth it
had coin In , its vaults
. equal to one-third of
its immediate liab il ities. And yet I am not
aware, with the exception of the banks of
Louisiana, that any State bank throughout
the Union has been required by its charter to
keep this or any other proportion - of gold end
silver_ corntatred with the amount of its com
bined circulation and deposits. What has
been the consequence? - In a recent report
made by the Treasury eartment on the
condition of the banksthroughout the different
States, according to returns dotted nearest to
January, 1857,thete amount ot actual
specie in their vaults - 9,838, or their
circulation 8214,778,822, and of their depos-
its *230,351,352. Thus it appears that; these
banks in the aggregate have considerably less
than one dollar in seven of gold and silver
compared with their circulation and deposits.
It was palpable, therefore, that the very first
pressure must drive them to suspension, and
deprive the people of a convertible currency '
with all its disastrous consequences. •
It is truly wonderful that they should have
so long continued to preserve their • credit,
when a demand for the payment of one-sev
enth of their immediate liabilities would have
driven them into insolvency. And this is
the condition of the banks, notwithstanding
that four hundred millions of gold from Cal
ifornia have flowed in upon us within the last
eight years, and- the tide still continues to
flow. Indeed such has been the extravagance
of bank credits that the banks now bold a
considerably less amount of specie, either in
proportion to their capital or their circulation
and deposits combined, than they did before
the discovery of gold in California. While
in the year 1848' their specie in proportion
to their capital was more than equal to one
dollar for every four and a half, in 1857 it
does not amount to one dollar for every six
dollars and thirty-three cents of their capital.
la the year 1848 the specie was equal within
a very small fraction to one dollar in five of
their circulation and deposits ; in 1857 it is
not equal to one dollar in seven and a half of
their eirculition and deposits.
From this statement it is easy to account
for our financial history for the last forty
years. It leis been a history of extravagant
expansions in the business of the country,
followed by ruinous contractions. At suc
cessive intervals the best and most enterpris
ing men have been tempted to their ruin by
excessive bank loans of mere paper credit,
exciting them to extravagant importations of
foreign goods, wild speculations, and ruinous
and- demoralizing stock gnmbline. When
the crisis arrives, as arrive it must, the banks
can -extend no relief to the people. In a
vain struggle to redeem their liabilities in
specie they are compelled. to contract their
loans and their issues • and at last, in the '
hour of distress, when their assistance is most
needed, they and theirdebtors together sink
into insolvency. • _ .
It_is this paper system of extravagant ex
pansion, raising the nominal price of every
article far beyond its real value, when com
pared with the cost of similar articles in coun
tries whose circulation is wisely regulated,
which has prevented us from competing in
our own markets with foreign manufacturers,
has produced extravagant importations, and
has counteracted the effect of the large inei- '
dental protection afforded to our domestic
manufactures by the present - revenue tariff.
But for this the breathes of our manuficteres
composed of raw materials, the' produition of
our own country—such as cotton, iron and
woolen fabrics—would not only have acquired
almost exclnsive possession of the home mar
ket, but would have created for themselves
a foreign market throughout the world.
Deplorable, however, as may be our pres
ent financial condition, we may yet indulge
in bright hopes for die future. No other na
tion has ever existed which could have endur
ed such violent expansions and contractions
of paper credits without lasting injury; yet
the buoyancy of youth, the energies of our
population, and the spirit wiicb never quails
before difficulties, will enable us soon to re
cover from our present financial embarrass
ments, and may even occasion us speedily to
forget the lesson which they have taught.
In the meantime it is the duty of the Gov
ernment, by all proper means withiaits pow
er, to aid• in alleviating the sufferings of the
people occasioned by the suspension of the
banks, and to provide against a recurrence -
of the mine calamity. Unfortunately, in ei
ther aspect of the case, it can do.but
Thanks to the Independent Treasury, the
Government has not suspended payment. as
it was compelled to do by the failure of the
banks in 1837. •It will continue to discharge
its liabilities to the people in gold and silver.
Its disbursements in coin will pass into cir
culation, and materisffy assist in restoring
a sound currency. From its high credit,
should we be compelled to make's tempora
ry loan; it can be effected on advantageous
terms. This, however, shall, if possible, be
avoided ; but, if not, then the amount shall
be limited to the lowest practical sum.
I have therefore, determined that while no
useful Government works already in progress
shall be suspended, new works, not already
commenced, will be postponed, if this can be
done without injury to the country. Those
necessary for its defense shall proceed as
though there had been no crisis in ow mon
etary affairs.
Bat the Federal Government cannot do
much to provide against a recurrence of ex•
isting evils. Even if insurmountable ecosti
tutionsl objections did not exist against the
creation of a National Bank, this would fur
nish no adequate preVentive security. The
history of the last Bank of the. United States
aljundautly proves the truth of this assertion.
Such a hank could not, if it would, regulate
the issues and credits of fourteen hundred
State hanks in such a manner as to preveht
the,ruinous expansions and contraction in
lour currency which afflicted the country
throughout the existence of the late bank, or
secure us against future suspensions. In 18
25 en effort was made by the Bank of -Eng
land to curtail the issues ado country banks
under. the moot fitrorableekouristanees. The
paper , currency had, been expanded to • ru.
Woos ellen, and the Bank put firth all its
power to contract it in Otter to induce prices
and restore the ecritibrittak of the foreir
r.AFRIA*Betp : o,N.D..nuaNnr ainiamov - . o : Lawawr AHD bv.-Eaßg..qms.9:-.'
---.,
41 . 1440,6 It accordinglymewed a aye
tern or eurtaihnent of its I and issues, in
the vain hope that the joint and private
banks of the kingdom would compelled to
follow its example. It roanhowever, that
as it contracted then expan loon, however,
at the
end of the process, to employ the language
of a very high o f f i cial autiity, " whatever
reduction of the paper circul a tion was effec t - .
ed by the Bank of England (in 1825) was
mote than made up, by the i es of the wan
try banks." • • • -
But a Bank of the UnltedS tes would not,
it it could, restrain the issues iutd loans of the
State banks, because its duti as a regulator
of the currency must oftenb4 in direct con
flict with the immediate intert of its stock
holders. If we expect one agent to restrain
or control another, their interests must, at
least in some degree, be antagonistic. But
the Directors of a Bank of th 4 United States
would feel the same interest and the same in
clination with the Directuti of the Mate
banks to expand the current ~to. acCoinmo
date their favorites and fi len s with loans,
and to declare large divide ds. Such has
been our experience in re d to the last
bank,
After_all, we must mainly rely upon the
patriotism and wisdom of ths States for the
prevention and redress of th evil. If they
i
will of us a real specie bask for our pa
-per circulation by increasing! the denomina
tion of bank notes, first to twenty and'after
ward to fifty dollars ; if they will reqitire
that the banks shall at all times keep on hand
at least one sklllar in gold anti silver for eve
ry three &Akre of their circulation .and de.
posits; and if they will provide by a self-ex.
ecuting enactment, which, noti ng can arrest,
that the moment they suspcn they shall go
into liquidation , l believe th. t such provis
ions,
with a weekly publicatio by each bank
of a statement of its coaditioti, would go far
to secure us against future sus nsions ofspe
cie payments.
Congress, in my opinion, p ss the pow
er to pass a uniform bankru 't law applica
ble to all banking institutions , throughout the
United States, and I strongly mmend its
exercise. This would make it the irreiersi
ble organic law of each bank'existence, that
a suspension of specie
_pay m nts shall pro
ducer its civil death. The instinct of self
preservation . would then compel it to per
form its duties in such a numner as to escape
its penalty and preserve its lik. .
The existence of banks ands the circulation
of bank paper are so identified with the hab
its of our people that they eauot, at this day,
be suddenly abolished withou much imme
diatei injury to the country. fwe could con
fine them to their appropriate sphere, and
prevent them from administetting to the spir
it of wild and recklssoeeult4.ion by extrav
a,, b ant loans and issues, they Might be contin
ued with advantage to the public. ,
But this I say, after long and much reflec
tion. If experience -*hail pro eitto be im
possible to enjoy the faciliti s which I.well
regulated banks might airora . without at the
same time su ff ering the calaWties which the
excesses of the tanks have hitherto inflicted
upon the country, it would - hen be far the
lesser evil to deprive the m together of the
power to issue a paper curry cy, and confine
them to the functions of bank of deposit and
discount •
Our • relations with - furet
are, upon the whole, in a sati
Lion.
The diplomatic difficidti
between the Government of
and that of Great Britain at ibc adjourntnont
of the , last Congress have Bern happily ter
minated by the appointment of a British
Minister to this country, who l has been cor
dially received. . •
While it is greatly to the Interest, as lam
. . .
...., the Intel.
convinced it is 'the sincere &Aire, of the Gov
ernments and people of the wo countries to
be on terms of intimate friendship with each
other, it has been oar mistune almost al
ways to have had some irri , ing, if not dan
gerous, outstanding question !with Great Brit
ain.
Since the origin of the Government we
have been employed in new' tiating treaties
with that power, and afterward in discussing
their true intent and meaning. In this re
spect, the convention of Apr l 19, 1850,com
monly called the Clayton an Bulwer treaty,
has been the most unfortu to of all
t t rui
;,
ca be
use the two Governmen place directly
opposite and contradictory constructions up
on its first and most imp° t article.
While, in the United S ,we believe
itri o,
that this treaty.would place 5 th powers up
on an exact equality by the! stipulation that
neither will ever " occupy, or fortify, or col
onize, or assume or exercisel any dominion,'-'
over any part of Central Arperica;• it is con
tended by the British Govefninent that the
true - construction of this lOguage has left
them in the .rightful. rion of all that
portion of Central Americo which was in
their Occupancy at -the date Of the treaty ; in
fiict, that the treaty- is a virtual recognition
on the part of the United Sates of the right
of Great Britain, either as Owner or protect
'or, to'-the whole extensive coast of Central
America, sweepingyound from the Rio Hon
do to the port and harbor cfSan Juan de Ni
caragua, together with the adjacent Bay Is
lands, except the comparatively small por
tion of this between the Sii.rstoor. and Cape
Honduras. According to eir. construction,
the treaty does no moreth simply prohib
it them from extending their possessions
in Central America beyonl the present lira
its. i
'lt is not too' much to assert that if in the
United States the treatybeen considered
4 '
, it never
susceptible of such a con
lia truction
would have been negotia under the au
thority of tha President,, r would it have
received the approbation the Senate. The
universal conviction In tbn silted States was
that when our Governmen consented to vi
olate its traditional and t" es-himored policy,
and to stipulate) with a A?reign povenunent
never to occupy or soluste territory in the
Central American portion of our own cond.
neat, the consideration foe this asaifice was
that Great Britain shotsin this respect at
least, be placed in the position with
Id ne
ourselves. While we havt no right to doubt
the sincerity of the British Government In
their construction of the ', it is at the
same time my deliberate /eviction that thiii
construction is in oppositkm both to its let
ter and spirit. i
Under Umlaut , itdminisfra ' Win negotiations
were. Instituted beta-semi the two Govern-
Milt' for the purpose, it possibk of ratios
ing these 4i.frioulticti ; and a treaty hsvini
MONTROSE, THURSDAY',I3ECEMBER 17, 1857.
governments
factory. condi-
which existed
e United States
this laudable objectln view was signed at
London on the 17th October. 1856, and was
submitted by the President to the Senate on
the following 10th of December. Whether
this treaty, either In its original or amended
forni, Would _have accomplished the object
intended, without giving birth to new and em
barrassing complications between 'the two
Governments, may perhaps be well question
ed. Certain it is, however, it was rendered
much less objectionable by the different
amendments made to it by the Senate. The
treaty, as amended, was ratified me on
the 12th March, 1857, and was transmitted
to London for ratification by tbeßritish Gov
ernment. That Government expressed its
Willingness to concur in all the amendments
-made by the Senate, with the single excep
tion of the clause relating to Russian and the
other islands in the Bay of Honduras. The
article in the original treaty, as submitted to
the Senate, after reciting that these islands
sad- ilea. inhabitants, "having been by a
Convention bearing date the 27th day
_of Au
gust, 1856, .between her. Britannia Majoaty
and the Republic of Honduras, constituted
and declared a free territory under the sever
eignty of the said Republic of Honduras,"
stipulated thati" the two contracting parties
do hereby mutually engage to recognize and
respect in all future time the independence
and rights of the said free territory as a part
of the Republic of Honduras."
Upon an examination of this convention
bettreen Great Britain and Honduras of the
27th of August, 1856511 t was found that,
while declaring the Bey? Islands to be "a
free territory under thelsovereignty of the
Republic of llonduraii,'' it deprived that-Re
public of rights withojit which its sovereignty
over them could scarcely be said to exist. It
divided them from the remainder of llondu
raa, and gave to their inhabitants a separate
government of their own, with legislative, ex
ecutive, and judicial officera elected by them
selves. It deprived the government of Hon
duras of the"taxing power in every form, and
exempted the people of the islands from the
performance of military-duty except for thC'ir
own exclusive. defense. It also prohibited
that Republic from erecting fortifications up
on them for their protection- a ahus leaving
them open to invasion from ',any quarter;
and finally, it'provided "that Slavery shall
not at any time hereafter be permitted to ex
ist therein."
Had Honduras ratified this_ convention,shc
would have ratified the establishrr.ent of a
State substantially independent within her
own limits, and a State at all times subject
to British Influence and control. Moreover,
had the United States ratified the treaty with
Great Britian in its original form, we should
have been bound "to recognize and rapect
in all future time" these stipulations to the
prejudice of Honduras. Being in direct op
position to the spirit and meaning of the Clay
ton and Bulwer treaty as understood in the
United'States, the Senate rejected the entire
clause, and substituted in its stead a simple
recognition of the sovereign right t f Hondo
r t l o these Islands fh the followint language - :
e two contracting parties do hereby mu
tually engage to recognize and respect the
islands of Ruatan, Bounce, Utila Barbarous.
llelena and Montt, situate in the Bay Of Hon
duras and o ff do* coast of the Republic of
Honduras, as under the sovereignty and as
part of the said Republic of Honduras,"
Great Britain rejected this amendment, as
signing aarthe only reason, that the ratifica
tions of the Convention of the 27th of August,
1856, between her and Honduras, had not
been "exchanged, owing to the hesitation of
that Government." Had this been done, it
is stated that "her Majesty's Government
would have had little difficulty in agreeing
to the modification proposed by' the Senate,
which then would have had in effect the same ,
signification as the original wording." Wheat
er this would have been the effect ; whether
the mere circumstance of the exchange of the
ratifieations of the British convention with
Honduras prior in point of time to the ratifi
cation of our treaty with Great Britain would,
" in effect," hails bad " the same signification
as the originallrordite and thus have nulli
fied the amendment of the Senate, may welt
be doubted. It is, perhaps, fortunate thin
the question has never arisen.
The British Government, immediately . of
ter rejecting the treaty as amended, proposed
to enter into a new treaty With the ',United
States, similar in all respects to the treaty
which they had just refused to ratify, if the
United States would consent to add to the
Senate's clear and unqualified recognition of
the sovereignty of Honduras over the Bay
Islands the following conditional- stipulation :
" Whenever and so soon as the Republic of
Honduras shall have concluded and ratified a
treaty with Great Britain, ,by which Great
Britain shall have ceded, and the Republic of
1 Honduras shall have accepted, the said Is
' lands, subject to the provisions and conditions
contained in such treaty."
This proposition was, of =urge, rejected.
After the Senate had refused to recognize the
British Convention with Honduras orthe
27th August, 1856, with full knowledge of
its contents, it was impossible for me, neces
sarily ignorant "of the provisions and condi
tions" which might be contained in a future
convention between the same parties, to sane
tien them in advance.
The fact is, that when two nations like
Great Britain and the United States, mutual
ly desirous, as they are, end I trust ever may
be, of maintaining the most friendly relitkus
with each other, have unfortunately conclud
ed a treaty which they understand in senses
directly opposite, the wisest course is to ab.
rogate such a treaty by mutual ooneent, and
to commence anew.: Had this been done
promptly, all difficulties in Central America
would most probably ere this bare been ad
justed to the *addiction of both pieties.—
The time 'pent in discussing the meaning of
the Clayton and Bulwer treaty would have
been devoted to this praise-worthy purpose,
and the task would have been the snore easi
ly accomplished because the interest of the
countries in Central Arneties is identical, be
ing, confined to sem* safe transit* over all
the routes across the Isthmus.
While entertaining these sentiment., I shall
nevezthelese not Won to contribute to 'any
reasonable adjustment of the Ceara' Amen•
can questions which is not practically incon
sistent with the American Interpretation of
the treaty. Overtures for this purpose have
been recently made by the Bntish Govern
ment in a friendly spirit, which I cordially
reciprocate; bat whether this renewed effort
will result in success I am not yet red
to express an opinion, A. brief period will
determine.
With France our ancient relations of friend
ship still continue to exist. .The French Gov.
ernment have in several recent Inetances,
which need - not be enumerated, evinced aspir
it. of goad will and kindness toward our coun
try which I heartily reciprocate. It is, not
withstanding, much to be regretted that two
nations whose productions are of such a chars
acter as to invite the most extensive exchan
ges and freest commercial intercourse should
continue to enforce ancient and obsolete re
strictions of trade against each Other. Our
commercial treaty with France is, in this re
specs, an exception from out treaties with all
Other commercial nations. It jealously lev
ies discriminating duties both on teenage and
on articles, the growth, produce, or manufac
ture hf the one country, when arriving in ves
sels belonging to the other.
More than forty years ago, on the 8d of
March, 1815, Coiigresi passed an act offering
to all nations to admit their vessels laden
with their national productions into the porta
of the United States ,upon the same terms
with Our own vessels, provided they
. would
reciprocate to us similar advantages. This
act confined the reciprocity to the productions
of the respective foreign nations whin might
enter into the proposed arrangement with the
United Stales. The act of May 24th, 1828,
removed this restriction, and of a simi=
lar reciprocity to all such vessels without ref
erence to the origin of their cargoes. _ Upon
these principles, our commercial treaties and
arrangements have" been founded, eimpt in
France ; and let us hope that this exception
may not long exist.
-
Our relations with Russia remain, as they
have ever been, on the most friendly footing.
The present Emperor, us well es his prede
cessors,' have .never failed, when the occa
sion offered, to manifest their good will to
our country ; and their friendsnip has always
been highly appreciated by the Government
and people of United States.
With all other European Governments,
except that of Spain, our relations are as
peaceful as we ,could &Nara. I regret to say
that no progress whatever has been made,
since the adjournment of Congress, toward
the settlement of any of the numerous claims
of our citizens against the Spanish Govern
ment. Besides, the outrage committed on
our flag by the Spanish war-frigate Ferrola
na on the high seas, off the coast of cs'ulia, in
March, 1855, by firing into the American
mail steamer El Dorado, and detaining and
searching her, remains unacknowledged and
unredressed. The general tone and temper
of the Spanish Government toward that of
the United States-are much to be regretted.
Our present Envoy - Extraordinary and
Mieister Plenipotentiary to Madrid has ask
ed to be recalled • and it is my purpose to
send out a new Minister to Spain, with spec
ial instructions on all questions pending be
tween the two Governments, and with a de
termination to have them speedily and ami
cably adjusted if this is possible. In the mean
time, whenever our Minister Ines the just
claims of our citizens on the notice of the
Spanish Government, he is met with the ob
jection that Congress have never made the
appropriation recommended by President
Polk in his annual message of December,
1847, " to be paid to the Spanish Govern
ment for the purpose of distributiOn among
the claimants in - the Amistad case." -A sim
ilar recommendation was made by my imme
diate predecessor in his message of Decem
ber, 1855; and entirely concurring with both
in the opinion that this - indemnity is justly
due under the treaty with Spain_ of the 27th
of October, 1795, I earnestly recommend
such an appropriation to- the • favorable con
sideratiop of Congress.
A treaty of friendship and commerce was
concluded at Constantinople on the 'l3th of
December, 1856, between the United Stites
and Persia, the ratifications of which were
exchanged -at Constantinople on the 13th of
June, 1857, and the treaty was proclaimed
by the President on the 18th ofAugust,lBs7.
This treaty, it is believed, will prove benefic
ial.to American commerce. The Shah has
manifested an earnest disposition to . cultivate
friendly relations with our country, and has
expressed a strong wish that we should be
represented at Teheran by a minister pleni
potentiary ; and I recommend that an appro
priation be made for this purpose.
Recent occurrences in China have been un
favorable
to a revision of the treaty with that
Empire of the 3d July, 1844, with a view
to the security and extension of our com
merce. The 24th article of this treaty stip
ulated for a revision of it, in ease experience
should prove this to be requisite ; " In which
case the two GovernMents will, at the expi
rat;on of twelve - years .front the date of snid
'convention, treat amicably concerning the
Same, by means of suitable:persons appointed
to conduct such negotiations. These twelve
yeirrs expired' on the 3d July, - 1856 ; ' but
long before that period it was ascertained
that important - changes in the treaty were
necessary, and several fruitless attempts
were made by the Commissioner of the Uni
ted States to effect these changes. Another
effort was about to be made fur the same
purpose by our Commissioner, in conjunction
with the Ministers of England and France,
but this was upended by the occurrence of
hostilities in the Canton Riper between
Great Britain - and the Chinese Empire.—
These hostilities have necessarily interrupted
the trade of all nations with Canton, which is
now in a state of blockade, and h ave occa
sioned a serious loss of life and_ property.
Meanwhile the insurrection within the Em
pire against the existing Imperial dynasty
still continues, and it is difficult to anticipate
what will be e result.
Under these circumstances, I have deemed
it, advisable to appoint a distinguished citizen
of Pennsylvania Envoy Extraordinary and
Minister Plenipotentiary to proceed to Chi
na, and to avail himselt of any. opportunities
which may oiler to effect changes in the ex.
isting treaty favorable to American com
merce. He left the United States for the
place of his destination in July last in the
war.steamer Minnesota. Special Ministers
to China have also been appointed by the
Governments of Great Britain isnd Frimee.
While our niinister ban been instructed to
occupy a neutral position in reference, to the
existing hoetilities at Canton, he will cordial.
ly cchoperate with the British and French
Ministers in all peaceful measurcito secure
by treaty stipulations those just ; concessions
to commerce which the nations or the world
have a right to expect, and which china eim.
not long be permitted to withhold.
assurances received, 1 .entefian no -doubt
that, the three Ministers will act in harinoni•
oils concert to obtain similar ciunir.erciat
ES=
I A. H. PUBLISHERL-3A44.8. O. 49
treaties for each of the powers they represent.
We cannot fiiil to feel cdeep Interest in
all that concerns the well:visor the independ
ent Republics on our own oontinentoa well
as of the Empire of Brazil.
Our difficulties with New-Game:hi, which
a shot t time since bore so threatening an as-.
pert, are, it is to be hoped, his fair train of
Settlement, in a manner Just and honorable
toroth parties. _
The Isthmus of Central -Anierica, includ- -
ing that of Panama, is the greet highway be
tween the Atlantic and Pacific, over which a
large portion of the - commerce of the world
is destined to pass. The United States are
more deeply interested than any other nation
in preserving the freedom_ and security of all
the communications across this isthmus. It
is our duty, therefore, to take care that they
shall not be interrupted either by invasions
from our country or by wars between Abe
independent States of Central America.
Under our treaty with New-Granada, of
the 12th of December, 1846, .we are bound
to guarantee the neutrality of the Isthmus of
Panama, through which lithe Panama Rail
road plisses, " As well as the rights of sover
eignty and - property , which New-Granada
has and possesses over the said territory."
This obligation is founded upon equivalents
granted by the treaty to the Government
and people of the United States.
Under these circutnstances, I recommend
to Congress the passage of an act Authorizing
the President, in case of necessity, to em
ploy the land and naval forces ;St the United -
States to carry into effect this guarantee of
neutrality and protection. I also recommend
similar legislation for the six:stray of any
other route across the Isthmus in which we
may acquire an interest by treaty.
With the independent republics on this
continent it is both our duty and our interest
to cultivate the most friendly relations. We
can never feel indifferent to their fate, and
must always rejoice in their prosperity.—
Unfurl unutely, both for them and. for us, our
example and advice have lost much of their
influence in consequence of the lawless expe
ditions which have been fitted out against
some of them within the limits of our count
ry. •Nothing is better calculated to retard
our steady material progress, or impair our
character as a nation, than the toleration of
such enterprises in violation of the law of
nations.
•
_
It is one of the first' and, highest duties of
any , independent State, in' its relations with
the members of.the great family cf nations,
to restrain its people from acts of hostile ag
gression against their citizens or stsbjecta—
The Most eminent writers on pablit law do
not hesitate to denounce such hostile acts as
robbery and murder. -
Weak and .feeble States, like those of Con
tral Ainerica, may not feel the selves- able
to assert and "vindicate their . rights.. The
case would be far different Vest /edition were
set on foot within our own.territories to
make private war against a powerful nation.
If such expeditions were fitted out from a
broad against any portion ofourmentountry,
to burn down our cities, murder arid plunder
our people,
and usurp our Government, we
should call any power on earth to the strict
est account for nut preventing such enormi
ties.
Ever since the Administration of General
Washington, acts of Congress have been in
force to punish severely the crime of setting
on foot a military expel:limn within the lim
its of the United States to proceed from
thence against a nation or State with whom
we are at peace. The present neutrality act
of April 20, 1818, is but little more than a.
collection of preexisting laws. Under, title
act the President is empowered to employ
the land and naval forces and militia u for
the purpose of preventing the carrying on of
any such expedition or enterprise from the
territories and jurisdiction of the United
States," and the Collectors of Customs are
authorized and required to detain.any vessel
in port when there is rosin to.believe she, is.
about to take part in such lawless enterprises.
When it was first rendered probable - that'
an attempt would be made to 'get up mother
Unlawful expedition against Nicaragua, the
Secretary of State issued instructions to the
Marbhalls and District-Attorneys, Which
were directed by the Secretaries of War and
the Navy to the appropaiate Army and Na
vy officers, requiring them to be vigilant and •
to use their best exertions in carrying into
effect . the, provisions of the act of 1818.—
Notwithstanding these precautions; the expe
dition has escaped from: our shores. Such
enterprises can do no possible good, to the
country, but have already inflicted much in
jury both on its interests and its character.
They have prevented peaceful emigration .
from the United States to the States of Cen
tral America,! which could not fail to prove
highly beneficial to all the parties concerned.
In a pectiniaty point of view alone, our citi
zens have stistained heavy losses from the
seizure and dosing of the Transit Route by
the San - JUan between the two oceans.
The leader of the rewnt expedition was
arrested at New Orleans, but was discharged
on giving bail for his appearance in the instil
ficienyenn of $2,000.
I emniliend the whole subject to the ser
ious attention of Congreas, believing that our
duty and our interest, as well as our nat'onal
character, require that we should adopt such
measures as will be \ effectual in restraining
our citizens from cornmitingsuch outrages.
I regret to inform you that the Prelident
or Paraguay; has refused to r Ctify the "treaty
between the United States and that State , as
amended by the Senate, the signature of.
which was mentioned in the hiesuage of my
predecessor to Congress at the openingof its
Session in December 1853. The reasons as
signed for this refus al will appear in the cor
respoodence herewith submitted. ':
It being desirable to ascertain the fitness
of the river La Plata and its tributaries for
navigation by steam, the United States steam
er Water Witch was sent thither for that
purpose in 1853. . This enterprise was sue.
oessfully carried cm until February,A 1855,
when, while in the peaceful prosecution of
her voyage up the Parana river, the btwrter
was fired upon by a Paraguayan fort; The
fire was returned, but as the Water Witch
was. of small force, and not designed for, rig'
feusive operations, she retired from the oust-
filet. The pretext upon which theattack was I
made was a decree of the President of Para
pay of October, 1854,
,probibiting hireign
vessels of war from mivigaSing the Avail; of
that State. Ai Paraguay, howaver,.was the.
owner of , but one bank of the river of, that
name, the other • belonging .tia Corrientes, *
Siete of the Arrstinik Cimfederation t the
.
right of , its Government to expecktbak andt
a decree would be obeyed cannot he inkinselo.
edged. But,the Water WitekweiteellW
erly speaking, a y vesseloFwer.. Showee*
email steamer pagegetin - a *lent&***-
prise intended for the advantage or nominee
did States generallY. . Under them saremr_
stances, I am constrained to could* the et ,
tack upon her_aluniustifiable imincesilinjg
for satisfaction, from the....Piraiptyiss !law
Otizetts of the United Stateitvilialior
were establiebed id basineso hi PansiOtif
have hid their property seined. anti.***
from them, and. have mherwiM ,hetnitriaki
by the authorities in an, insulting-anderl4o4
ry manner, which requies
A demand for theee putimsenwilijsrandir
in a firm bat coneilistory spirits . TJiia 1411
the more probably be. granted it the rimen...
tive shall have authority to use other Wrests
in the evestof a refusal. This is iteceidhsgly
recommended.
It in unnecessary to state in dstsit- ilia
alarming condition of the Tanitorybr tan.
us at-the time of my inauguration.Tbe op.
posing parties then .stood in hostile array
against each other, and any accident- might
have relighted the !Wass of _civil war.. Ba.
sides, at this critical moment Kansas *lB
left without a Governor by the resignittloitof
Gov. Geary.
Orh the 19th of. February previottk,
Territorial Legislature hadpassed af lane'pra-,
viding for the - election of Delegates on the
third Monday of June to a Convention to
meet on the first Mondaylof Septembez.,fdr:
the purposeof framing a Constitution proper:
story -to admission into the Union. • Thlslielf
vas in the main fair and just; and it it*
be regretted that- all the qualified ..elentaille
had not registered themselves and - voliatimi%
der its provisions.
At the , time of the election for..delegabit ir
an extensive organization - existed. AD .
Territory, whose avowed object it vas t if
need be, to'pnt down the law6l6overarisitiS
by force, and establish a Government of thaw
own under therso-called Topeka Constitution:
The persons attached, to this revolutionary
organization abstained from asking nay rus
in the election.
The act of the Territorial Legislature had
omitted to provide for submitting to this
people the Constitution which_ m ight he
framed by the Convention ; and inthe excited
state of"public feeling throughout lUnsai - sur
apprehension extensively prevailed that it
desigm existed to force upon them 6 Constitt'
tion in relation to Slavery against these will,
In this emergency it became my duty, as IC
was my unquestionable right, having in view
the union of ell good citizens in swat.
orthe Territorial laws,-to express in optaloa ,
on the 'true construction of the proviskas
concerning Slavery contained. in - the organic
act of Congress of the 38th May, 1854.
Congress declared it to be the flue fir ,
tent and meaning of this act not to legislate
Slavery into any Territory. or Stite, nor lliude -it therefrom but to leave the peoples
.thereof perfectly free to form , and regulate
their domestic institutions in their own iray. "*
Under it, Kansas, " when adraitted as -
State," was to "be received into the Unit!,
with or without Slavery, as their Constitatiom
may prescribe at the. time of their &dada
sion." 7
Did Congress mean by this languktettet:
the, delegates elected to frame a Constitificitr
should have authority finally to - decide the
question of Slavery, or did they inked by
leaving it to the people that the VP* *
Kansas themseires should - - decide gum.
tion by a direct vote? jOn this subjectl
confess I had never entertained a- serionti. .
doubt, and, therefore, in my instruct:low to;
Goy. Nyalker of , the 28th of Mainh Us; I
merely said , that whin a Constitution shall
be submitted to the people of the Territory
they must be protected in the exereiseof their
right of voting for or against:that instrument;
mid-the fair expression of the -popolar
must not be interrupted by fratid or violence."
In expressing this opinion 'it wain' kiln
my intention to interfere with thelepision at
the people of Kansas, either for or aphid:
Slavery. From this have always carefeltis
.
abstained. Intrusted with the darer tithing
" care that, the. laws be faithfully exeouted; -
my only desire -was that people of
sag should furnish to Congress the erldianat.
required by the orgastic act, whether - for - or
against Slavery ; and in this' Mantierr smooth
their passageinto the Union. In entirghis
from the condition' of territorial dependence'
into that of a sovereign State, it was - their
duty, in myOpinion: tor s make knower their"
will by the votes of the majoritS•mr ilk di.
rect question whether this important domes;
tie institution should or shluld not coveter
to exist. Indeed; this seas the only - pomade'
mode in which their will could be - anthentl.
c.dly ascertained.
The election of delegates to a eititeltilbel
must necessarily' take place kir ikstrabs dls.
tricts. From this_eause it may readily hap.
pen, as has often been the case; that a major
ity of the peop_le of a State or Territory are ,
on one side ot a question; while * majority
Of the representatives from the inlaid die.'
tricts into which it is divided may . he upon
the other side. Ibis arises frcuttliii aotbat
in some district* delegates mat Itrelectedf
by small majorities,; while in °tiers those of
different
-sentiments -May receive' majorities
sufficiently great not only to Overcome the .
votes given for the former, but to lease a,
large majority of the whole
_people hi atilt*
opposition to a majority of the deregatea..
Besides, our history,proves that: Inflummi
may be brought to bear on Abe reprieuttlb
tive sufficiently 'powerfulk - to indwii ,
diiiregard the will of. his mmatittieuta:
truth is, that no other - authentic int Maisfito-:
toy mode exists of iseertailhis. the will'of
majority of the people of any State or Teti:
tory on an important - and exciting- .
like that of Shively in Kansa, skusikty
leaving it to idirset vote /kW' wiaNdieri t
was it-for Congress to pass overall *Kith.
nate and intertrtediateagencirailmi propeef
directly to the sourer of all legitimate piritet
' under our it:Manama! 2- - •
How •Itinyouip any oast prinemprcrtiv
in practice! - Thiowisy be illustrasatty as
case of Kansas. Should *be bersahniasad-ks
to the liniett„ with aeoftetituticitteper emit.
*tilt St 7 « via* the'
sentiment of theieople, this omit'
4theii,eirect, than teategieuit and emponitii
the exhale* agitatkii4letieg the bitiorperwit
required - tweak* the Coestilkolibtf.
to the isteiiettble will of th*Wwloo46
ka ;
The frithsiltaed suppowtmegibiritsbal*
atuLlianties 111 1*
cent oMlPiint to sustain it% low gtoOsigij
MEM
UM
MUM
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