-it .111 J f vartoukitr 0.. ot . - ,411:L41 ~tapiblier;_timititteetatOxibeen - numerous, iiriatiiinerit mid plunder of . - .Que;citizentyb i iii y_differeittpartics debiting and ..:.:14ZerCiaingttlecalinritalietion.Tbut the Con - tml - Gove;rament, although .repeatedly ; urged thereto; have:triade no effort,eithe.r.tqunish . the authore,'Of these 'outrages • or.:to -- Iprevent No American .citizen can, ' now . ~ bitsinels_ivithout intedietitAting,er tithie pertion ind\propertY: - There is no adequate protection to either; and in this respect our treaty with that Re-. public is almost a dead letter. Thiiistate of affairs was brought to a crisis in May last by the promulgation Ora decree levyino *contribution pro rot upon - all, the •capital in the - Republic, between certain spec illed 'inwards; whether. held by -Mexicans of focei tiers. Mr.,Fora3rth, regarding' this ereea - the light:era" forced loan," formally -protested against - its application to his trymen, and :advised them not to pay the . ..eontribution,.bnt to -suffer it to be forcibly exacted:Z.:Actin , * upon th is advice„ an - Airier jean citizen refu sed to pay, the .contribution, and-his property was seized by 'armed men to satisfy the amount. Not content , with this ; the Government proceeded still further, and - iistted a decree banishing him from the cOun trv;.Our Minister immediately notified them thltt it this decree should be carried into exe -: -eution he vrould.feel it to be his duty to a dopt " themost decided measures that bebmg ,to the potvers and obligations of the .repre . 'tentative office?' . Notwithstanding this warn ing, the < banishment wis enforced, -and Mr. ~ - Forsyth promptly announced , to the Gevern ment the,suspension'of the political relations - : Of his legation with them, until' the,:pleaaure 'of his own Government should be ascertained. I This Government did not regard the eon . tribution imposed by the decree of the 15th of May last, to be in strictness,: a " forced i loan, and_as such prohibited by the tenth tirgele of the! tr'ea'ty of 1826, between Great Britain and Mexico, to the benefits of which AmeriCan citizens are entitled by treaty ;,yet the inaposition of the contribution upon for . 'diners was eonsideied an unjust and oppres .. sive measure. Besides, internal factions in 7 other, :4 part6f th e Republic were at the 'Same time levying similar exactions upon the pro :. perty 'of our Citizens and interrupting their • cOmmerce. There had-been an-entire -ton-tonthe part of our Minister. to secure redre4s . for the wrongs which our citizens had. ender; . • ed, notwithstanding his persevering efforts; and; . from the temper manifested by the Alex :. lean Government - , he had repeatedly assured us that no favorable change could be expect ed until the United States should "give strik ing. evidence cf their will and:power to pro .test their citizens," and - that " severe chasten ' log is the only earthly_ remedy for our grist - nudes." From this statement of facts,- it would have been worse than idle to direct Mr, Forsyth to retrace tis-steps and -resume diplomatic relations with that Government; and it was, therefore deetned proper to sanc tion his withdrawal of the legation from the • City of Mexico.: • Abundant cause now unaoubtedly exists fora _resort to hostilities against-the GoVerw : nient'still holding possession , of the Cap:,tof. . Should they succeed in subduing the coniti: , tutional &trees, all reasonable: hope will then ' have expired of a peaceful settlement of our ::. difficulties; . •'• j. - . On the-other hand, slmiuld the corenitution. al party - prevail; Emil ,their authority :be es tablished over. the Republic, - there is. reason to. hope that.they will be 'animattxl by a less .utifriendly gpirit, and may grant that redress to:Atneriean citizens whiCh justice requires; •_ so far.as they may possess the means. But fur :.this .expectatron, 'f should at on_ ce have • - recommended to Congress to grant necessa ry power- to the President to Cake possession of a sufficient portion of the remote and un- settled territory "of Mexico to Le-held ill pledge until our injuries shall -be redressed and. out. just demands be 'satisfi,o_ W have t • ;arena ca - se t its remedy of reprisals is recognized by the laws of na. tions, not only as jest in itself, but as a means of preventing actual war. .. But there is another view of our relations _ with Mesico, arising from the unhappy , condi. tion of affairs along our south-wes:ern iron- tier, which demands immediate action. In that remote region where there are but few white inhabitants, large bands of hostile - and predatory- Indians, roam promiscuously over the McKie= states of Chihuahua and Sonora, and our-adjoining territories. -The local Gzw-, ernrnenta of these states are perfectly help : Fess, and are kept in a state of Constant alarm by - the Iridium They have not the poWee, if thew possesathe will, even to restrain-lawless Mexicans front passing . the border and com mitting depredations on our' remote 'settlers. •A. state of anarchy- and violence prevails throughout that distant fiontier. •'The laws are a dead letter, and life and property ; are wholly insecure. For this reason the settle ment of Arizona is arrested, while it is of great importance that a chain of inhabitants shouldtend all along its southern border, s 'salficien for their own protection_tutd that of the Um States Mail passing to and from, i • California. • Well founded apprehensions are now:entertained i that the Indians, and wan dering.Mixieans, equally lawless, may break up the-important stage and postal commnni cation recently established between ourA,,- lantic and_Pacific possessions. This passes very near to the Mexican boundary, throug.h ont the whole length et Arizona. I can 'im aOne-no possible remedy for these evils, and no mode of restoring law - and order on- that remote and unsettled , frontier, bilt for the GoVernmint of the United States to assume a temporary protectorate over the northern portiOns of Chihuhua and Sonora, and -to es. tablislrmilita-ry posts. within ' the same ; and this is earnestly recommended to. Congress. This protection may be, withdrawn as soon as /mar Governments stall: be established in these Mexican States capahle of- performing 1 their tiuties to the United States, restraining 'she lawless and preserving - peace along the border. - - - - - _ .1 do not doubt that- this measure will be viwed in a friendly manner by the Govern menti and people of Gnihulnia and Sonora, as it: ilt prove.equally effectautl for thi_protec tion of their citizemt on ithe remote and law leis frontier as for citizensof the4United ... I . And. in this connection permit me to recall your attention to. the condition lafArizt, ma.— The poputatiou of that territory,-numbering, as lastAleged, mere thou 10,000 souls, are practically,. withoet a govennnent, , withoat laws, and without and regular administration of justi* Murder and other crimes are (our. reittad withimpunity. This state of things calls for redress, and I, _therefore, repeat my - recommendation for the establishment or a Territorial Government over Arizona. . - Tha.politieal condition of the narrow isth. mita at - Central America . through which !ran . sit mato:ems between the. Atlantic and Pre: . eificOriansjpresents a subjett of deep inter eat' to r all commercial -nations, Is is - ever . thesis transits that a large proportion of the trade and inivel "between the European and Ariattic Datatinints 13,4 ft-tined to pass. To - the linited-Staten game mutes are of itrealeu lable.iorportanctkai a means of -communica tion_hetween their Mimic and Pacific poss. estafrnit — ~-. Theletter, atow..extend throUghout ssveeteno admit . o!',fatltirde- on. the Pacific I MaStt egibl ar th e IMPOrtatlt stale orcaii: fonlia/034_ ishing,territorligiorWadv 1 , - - - .. 1 1 ;L'4'...fi .c.-.. "- •. • i •- ,4' ! •-, ---' - ' - ---_ ..„-!...4,..-q.-r_.,i, 4: '.' , A. 1.175:2'..1i1f.-*Str7..`" lie, its frequent changes of Govetument, • and its constant internal dissensions, this had be come-a mast impoi;ant - stipulation, and one essentially :necessary not only for te securi ty of the‘rouie, but for the security of Amer ican_.citizens *sing andl-repassing to and from our Pacific possessmni. Were such a stipulation embraced itial treaty between the United States° and Nicaragday the knowledge of this fact would of itself, most probably, preVent, hostile parties from committing ng aressiotis on ,the route, and render our actual interferenee 'tor its protection.nnneeessary. The Executive Government-of this country, in its intercourse with foreign nations, is lim ited to the employment of: diplomacy alone. Whcil this fails, it can proceed no tarlher 4 - 7 - It cannot legitimately resort to force without the direct authority of UongreSs, except in re sisting and repelling hostile attacks. It wo'd have no authority to enter the territories Of Nicaragita, even .to prevent the destruction of •the transit, and:protect-the lives-and proper ty of our own citizens en their : passage. It •is . truethai on a sudden emergency •of this character the President would direct any-arm ed force in 'the vicinity to march to-their re lief, butitt doing this.he would act Upon his own resposibility. • Under these circumstances, I earnestly re• commend fo Congress the passage of an act authOrizing the eresident,lmder such restric tions as they - may - deetn, proper, to employ the land- and naval forces of the Unite() States in-preventing the transit from' being obstructed or dead by lawless violence, and in protecting the lives and property of American citizens traveling thereupon, re quiring at the same, time that these forces shall be :withdrawn the moment (h& .danger shall have ..passed away. Without such . ' a provision, our citizens will = be eckistantiy ex posed to interruption in their progress and to lawless violence. Kiimilar necessity exists for the• ptlasage of such an act for the protection of, the 'Pan ama and Tehuantepec routes. In reference to the Panama route, the Uni ted-States by their existing treaty;-with New Granada, expressly guarantee the neutrality of the Isthmus, " with the view that the free transit from the one to the other sea may not be interrupted or einbarrassed in any-future time while this treaty exists." , • In.regird to the Tehuantepec mute, which has been reeentliopened under the most fa vorable 'auspices, our treaty with Mexico of the 30th Dezeinlier:lBs3, secures to 'the cit izen§of the United States a right- of transit vier it for their persons and tnerdhandise,. and stipulates that neither Government shall " interpose any obstacle thereto." It also concedes to the United States the "right to transport across the Isthmus, in closed - bags, the mails'of the United States not intended for distribetioe along the line of the conimu r niCation ; also. the effects of the United States Government and its citizens which may, be intended for transit, and nokfor 'distribution on the Isthmus, free of custom-house - or oth er charges by the Mexican Government: These treaty stipulations with-New•Grana da and Mexico, in additiqn - to the consider& • lions applicable to the Nicaragni route, seem to require legislation for the purpose of car rying them into effect. s*- • Tne injuries which have been inflicted up. on , our citizens in Costa ltica and Nicaragua during the last two or three years have re 4:teived the prompt attention of this Govern ment. Soto° of these injures: were of the most aggravated character. . the transactiou it Elty; itrAfirik;lBls6, whets txar MEIN NEE . Mgt*" .: therefore, kii**di* - itori - diooki , bo; that theAt crunmuuteatione:4lol - . be 'rendered secure .froWt interruption . if an:arm - of-the :sea con necting with the two oceans, penetrated thro'. 'Nicaragua and Costa Rim, it. could nut be 'Pretended that tile4e States had.thc right to arrest. Orietitrdlits utiVigktion; to .the injury, of other 'nations.. The.:transit by land over this narrow isthmus orieupies nearly the same position.: It is a highway in Whieh they :themselves have little interest Whentiontpar ed With thevaSt interest; of the' rest. Of the world. While their rights- of sovereignty ought to be respected, it is..the duty of other nations to require that this important passage shall Jtot be itaterruyted , by the civil wars and revolutionary Outbreaks, which have so fre quently occurred in that regiTin. ..The stake is too iinpoiiimt to be left at the mercy of ri val -companies, claiming to hold conflicting 'contracts *Rif Nicaragua.. The cornmerCe .of other nations is not to stand Still and await the adjustmenfof such petty controversies.— The Government of the United States expect no more than this, and they wily not he sat isfied With less.- They would not, if. they could, derive any bene fi t front the Nicaragu a transit, not conunon. to the,rest of the world. Ifs neutrality kid. protection, • for the coin tnon ttie of all l ,'untions, is their only object. They have no obleetion that Nicaragua shall deinand and receive a fair compensation from. the Gompaniq and individuals who may trav erse the route ; but they insist that it shall never htltafter be elOsed by an. arbitrary 'de alt() of that G.iverinnent. If disputes arise. between, itand 'those with whom they may have eirtered into contracts. those must be adjusted.by seine fair.tribunal provided for the purpose, and the route must not be clos ed • - peeding the cbntroversy. .This . ,is our whole policy, and it cannot fail to b e accept able to other nations. All these difficultiestnight be avoided if. consistently with the good faith of Nicaragua the use of`this transit could be thrown open to general competition ; providing at the same time for the payment of a reasonable rate to the Nicaraguan Government on . passengers and freight. . • In-August, 1852, the' Aecessory. Tran - sit Colvpany Made its first iliteroceanic trip ov er the Nicaraguan route, and continued in in.suceessfuloperation, wittrgreat advantage to the public, until the' 18th of February, - 1850, when it was closed, and the grant to this. Company, as will as its charter, were summarily and arbitrarily revoked by. the Government of President Rivas... Previous to this date; however, in 1854, serious dis puteSoncerning the settlemeht of their ac counts had arisen between the, Company rind the Government, threatening the interruption 'of the routeat any moment. These the Uni,- ted States in vain endeavored to compose;— It woeid be useless to narrate the various proceedings which took place 'between the parties, up till the time when the transit was diScontinued.. Sallee it to say, that . since February, 1856, it has remained' closed, grotty to the prejudice of citizens .the 'United States. Since that time the eompeti tioWhascea.senetween the rival routes c't Pat :tin:n& Nicaragua, and in consequence thereof,' 'an unjust and ' unreasonable amount fns been,exacted. from per citizens for their passage to and from California. A treaty was - signed on the 16th, of of • November, .856, by the Seeretary of State, and Minister of Nicaragua, under the stipula tions of width the•use-and protection of the Transit route would have been secured, not only to the-United States, but equally to all other nations. How and on what. pretexts this treaty has failed to receive the ratifies= tion of the Nicaraguan Government, will ap pear by the papers herewith communicated from the State Department. The. principal objection appears to have been 'to the provis sion-anthorizing the _United 'States to employ force tokeep the route-open, in case Nicara nes should fitil to erform her 'alit in this pony_ of uottimed Atnerieams.srhow* 'way connected Witlfany . :beligerant conduet or party, were fired upon hy . the - troops •of Costa Rica, and numbers of thern killad and wounded, was brought tO the knowledge of Congress by 'mY : predeetissor soon after its ocurrence, and was. alSo,;', presented to the Goverpinent of Costa Rica, for that-immedi ate investigation and redms which the na ture of thirease:,darliantled: . Asimilarcourse was pursued in reference to other outrages in these countries, some of which were hard ly less aggravated in their character than the transaction at Virgin Bay. At the time bow... ever, when our presentlfinister to Nitaragua was appointed in December, 1857, no redress had been obtained for any of these wrongs, anti,no reply even had been. made, by this Government on that of Costa-Rica more than a year bepre. Our Minister was instructed,. therefore, to lose no time in expressing to those GovernMents the deep. regret with which the Presideht had witnessed this inat tention. to the just clairfis of the United States, and in demanding their prompt - and: satisfae. trey adjustment. Unless this demand shall lie complied wfilLat an early day, it will on= ly _remain for this Government to adopt such other measures as may be necessary, in or. 'der - to - obtain for itself that justice which it hash vain attempted to secure by peaceful. mean's from the Governments of Nicaragua and Costa Rica. While it has shown and will continue to show the most sincere regard f.Wthe rights and honor of these Republics, is cannot permit this regard to be met by an utter neglect on their part, of what is due' to the Government and citizens of United States, —Against New Granada we have long•stand• ing causes of complaint, arising ont of the unsatisfied claims of our. citizens upon that republic • and to these have been more re. cently added the outrages committed- upon our citizens at. Panama in April, 1856. A treaty for the adjustment, of these. difficulties was concluded by the Secretary of Stato.nnd the Minister of New Granada; in September,. 1357, which contained just and acceptable provisions for that purpose. This treaty was• transmitted to Bogota, and was ratified by the government of New Granada, but with certain amendMenls. It Vas not, however, returned to this city until after the close of the last •session of the Senate. It will he immediately transmitted to that body for their advice and consent; and should this be obtained, it will remove all our existing cans: es of complaint) against New Granada on the subject of claims. question's have arisen between the two governments, as to the right of New Grana da to levy a tonnage dutf updti the 'Vessels of the United States in its ports of the Isth mus, a nd to levy a passenger tax upon 'our citizens arriving in that country, whether with a design to remain there or to pass from ocean to ocean by the transit route ; and also a tax upon the mail - of the. rnited States transported over the Panama railroad. The government of New Granada has been informed, that the United States would con sider the collection of either of those ,taxes, as an act in violation of- the treaty between the two countries, and as such would - be re sisted by the United States. At the same time, we are prepared to discuss-these ques tions in a spirit of amity and justice, and with a sincere desire to adjust Awn in a ,sat isfactory manner.. A negotiation for that purpose has already been commenced. No efliirt has recently'been made to collect these taxe , :, nor is any :anticipated uhder present circumstances. With the" empire- of Brazil our relations are of the_ most -friendly character. The productions of the two countries, and espe cially -those of an agricultural nature, are such as to invite extensive mutual exchanges. A largelipantity of AmeriCan flour is con sullied in Brazil; whilst more than. treble the amount in value of Brazillian coffee is en -- consumed In toe luitect - until very recently, upon the importation of American flour into Brazil. I am gratified, however, to be able to inform you that ,iu September last this has been reduced from 0.32 to about 4p cents per barrel, and, the duties on other attieles of our production have bien diminished in nearly the same proportion. - I regret to state that the government of Brazil still continues to levy an export duty of about 11 per cent. un coffee, notwithstand. in , * this article is admitted free front duty in the United States. Thisis a heavy charge uport.the consumers of coffee in our country, as we purchase half of the entire surplus Cron of that article raised in -Brazil, Our minister, under instructions, will reiterate• his efforts to have this export duty removed; and it is hoped that the enlightened govern. ment of the emperor Will adopt this wise, just, and equal policy. In that event, there is good reason to believe that the elmitneree between the two countries- will greatly hi crease,. much to the advantage of both. The.elaims of our citizens against the gov ernment of Brazil are not, in the aggregate, 'of very large amount; but some .of these rest upon plain principles of justice, and their settlement:oughtmot to be longer delayed. A renewed and e6ne4t, and I trust a suc cessful effort, will be made by our minister to. procure their final adjustment. On the 2d of June last, Congress passed a joint resolutton authorizing the President " to adopt sfich measures and use. such force as, in his judgment, maybe necessary and' ad visable," "for the purpose of adjustin g the differences between - the United States and the republic of Paraguay. in connection with the atmek on the Unifed States steamer s Water -Witch, and with other measures referred to" in his annual message, And on the 12th July following,- they made-an appropriation to defray the expenses and compensation of a commissioner to that republic, should the President deem it proper to make such an appointment. .. In compliance with these- enactments, I' have appointed a commissioner, who has pro ceeded to Paraguay, with full poWers and instructions to settle these differences in, an amicable and peaceful . manner, if this be prue ticable. Ills experience and discretion. justi fy.tbe hope, that he may prove successful in convinein the Paraguayan government, that' it is due both to honor and justice, that they should voluntarily and promptly make atone ment for the wrongs which they have corn= mitted against the Cnited States, and indem nify, our injured citizens whom they have forcibly despoiled of their property. , . Should oar commissioner prove unsuccess ful, after a sincere and earnest effort; to sie coiriplish the of of his mission, then no alternative will remain, but the employment of force to obtain " just satisfaction" from Paraguary. In view of this contingency, the Secretary of the Navy, udder my direction, has fitted 'out ano 'dispatched a naval force, to rendezvous near Buenos Ayres, which, it is helieved, - will prove sufficient forthe occa sion. 'lt is my earnest desire, however, that it may not be found accessary to - resort to this last alternative... When Congress met in December lost, the business of the country had just been crush ed, by one of those periodical revulsion; "whicli are the inevitable consequences of our unsound and extravagant system of bank credits and inflated currency. , With all the elements, of national, wealth in abundance, our manufactures( were suspended, our useful Onto euterprises we f, ._4l79sted4 and thousands oflaborare airere'deprilfeC of .. employment and reduced to scant. Univers al distresa.previtilidatittmg the commercial, . manufacturing;. and litechanial classes. Thiirevidsion Xitti felt 'the-more severely in thaUnited States, hecaans4 similar , causes had=: produced. the like diplorahle effect throughrint the - coratnereial nations of Europe. MI `were experiencing sail reverses at the same. moment. -• Our . litanufsetuters every where Suffered severely; not lbecause of the 'recent reduction in'thei tariff of duties on im ports,. bit bemuse there was no demand at any price for their productions. The eople wore obliged to restrict theMselves in 'their purchases, to - articles of- pririm necessity:— In the general, prostration . of business , iron manufacturers, in di ffe rent States, .probably Suffered more than any.otherelass, and touch destitution-was the inevitable mnsequence, - among the great number of workmen who had been employed in this t=enth bitinch of Our -industry., There ,could be no supply where there was no demand.: To present an example, there could bend demand for rail road iron, after our magnificent system - of -railroads, extending its benefitslo every por tion of the Union, had been :lirtiught_. t dead, pause. The same consequenem have : resulted from similar causes te many other branches of useful manufactures. It is self 'evident that when there is nobility to pur chase menu facturedartfcles, these cannot be sold, and consequently must Cease to be pro duced.. No government, and 'esPecielly a govern ment of such limited power! us Ihat of the United States, could have prcvcneed the late revulsion. The whole commercial world . seemed fur years to have been rushing to-this catastrophe. The stuns ruinous consequen ces would have followed in the United States whether the duties upon foreign-imports had remained as they were under the tariff of 184 Q, or hail been raised to a much higher standard. The tariff of 1857 had no -agency in the result. The general causes existing throughout the world, could not have been contrulhtd by the legislation of any particu lar country. The periodical revulsions which have, ex ia.ed in our past history, must continuo to return at intervals, so long as Our present un bounded system of bank credits Audi pre vail. They will, however, probably be the less severe in future t- because it is not to be expected, at least, for many 3 ears to come, that the commercial nations of Eulope'„ with whose interests our.own are so materi ally involved, will, expose themselves to similar calamities. But this subject Was treated so much at It in , •my last, annual message that I shall not'pursue it further.— Still, I-respectfully renew the recommenda tion, in favor of the passage- of a uniform bankrupt law, applicable to banking institu tions. This is all the power over the subject which, I believe r the federal government pos sesses. Sucher law would mitigate, though , it might not prevent the evil. The instinct of - self preservation mlght produce' a whole some restraint upon their banking business, if they knew in advance, that-a suspension of specie payments would inevitably produce their civil death. • But.the effects of the revulsion are now slowly but surely passing away. The ener gy and enterprise of our citizens, with our unbounded resourees;will, within the period of another year, restore a state- of whole some industry and trade. Capital has again accumulated in our large cities. The rate of interest is there very low. Confidence is gradually reviving, and so soon as it is •dis, -covered that this capital can be profitably employed in commercial and manufacturing enterprises, and . in the - construction of rail roads and other works of - public and private - improvement, prosperity will :Tian smile throughout the , land. It. is vain,- however, to disguise the fact front ourselves, that a speculative in flationArnusmappy migtput ;:h7;;Tnanufactures come into competition with our own, must ever produce disastrous results to our domestic manufactures. No tariff short of absolute prohibiticiu, can pre vent these evil consequences. In connexion with this subject, it is proper to refer to our financial condition. Ths same causes which have pioduced pecuniary dis tress throughout the -country, have so reduced the amount of imports from foreign coun tries, that the revenue has proved inadeqyate to meet thi: necessary expenses of the gov ernment. To supply the deficiency,- Con gress, by the act of- the 23d of Decenther, 1857, authorized the issue-of $20,40,000 of treasury notes; and this proving inadequate, they authorized, by the • act of June 14th, 1858. a - loan of $20,000,000, "to be `applied to the payment of appropriations made by law." Wkla; No statesman would advise, that we sherd go on increasing the national debt to meet. the ordinary expenses of the government.= ThiS would be a most . iuinous policy. In case of war, our credit must be our, chief re source, at least for the first- year, and. this would be greatly impaired by having con tracted a large debt in time of peace. It is our trite _policy to increase our revenue so as equal our expenditures. Itwould be tuinpus to continue to borrow. Besides. it may be proper to observe, that the incidental protec tion thus afforded by a revenue tariff, would at the present n%ment to some extent, in-' crease the confidence of the manufacturing interests, and give a fresh itn,putse to our re viving business. To this, surely,,no person will object. In regard to the mode of assessing and col lecting,-duties under a strictly revenue tariff, I have long entertained and often expressed the opinion that sound policy hqnires this should be done by specific duties, in cases to which these can be properly applied. They are well adapted to commodities which are usually sold by weight or measure, and which froth their nature, are of equal or nearly equal value. Such fur example are the adj. des of iron of different classes, raw sugar, .and foreign wines and spirits. • In my_deliberate.judgment, specific duties are the best, if not the only means of secur ing the revenue against false and fridn lent invokes, and such has been the practice adopted for this purpose by other cotnmer cis! nations. Besides, specific duties would afford to the American manufacturer the le. cidental advantages to which he is fairly en titled-.under a revenue, tariff: The present system is a sliding scale to his dissavantage.- Under it, when prices aro high and business prosperous; the duties rise in amount when he least requires their aid. On the contrary *hen prices fall, and be is .struggling with adversity, the duties are diminished in the same proportion, greatly to his injury. Neither would there be danger that a high er rete_ofdoty than that intended by Congres could be levied in the form ofspeeific duties. It would be easy to ascertain the , average value of tiny imported article for a series of years. and instead of subjecting it to an ad valorem duty at a certain rate per contort', to subititute in, its an equivalent specific duty. By such an arrangement the consumer would not be injured. It is true he might have to pay . 41 little more duty on a given ar ticle in one year; but if so, he would psi* little less in another; and M a series of years these would counterbalance each other, and amount• to the seine thing as far 89 his 'inter• ebt is concerned. This inconvenience would be frith% wbee contraitul with the Addition' the revenue, in which el/cry consumer is di rectly interested. have thrown'bet these seggestions as the fruit of my own observatior to labial; pim, 4 0 8,, in their better judgment Will , give such weight es they May justly deserve..' The report of thee - Secretary of the Treatin rywill explain ih detail the,operuttons, for that department of the government. The'-rek ceipis Into the treasury from all sources due ing the liscal_year'ending- June 30th; 1858, including the treasury notes authorized by the act-of December 2 . 3 d, 1857, were seven ty million two hundred and . seventy-three' thousand, eight hundred and silty-nine dot : Mrs and fitly-nine - tents, ($70,203,889.59,) which amount with the balsa of seventeen . million seven hundied and, ten 'thousand one hundred and frairteen dollars and twenty-sev en cents, 017,718,11427yremaining : in the treasury at the commencement of the year, made an aggregate fur the service of the year of eighty-seven million nine hundred And eighty-three thousand, nine hundred and eigh ty-three dollars and eighty-six' cents, 087,- 983,983.80. , The public expenditures during the fiscal year ending June 30th, 1858, amounted -to eighty-one .milljon fire - hundred and sixty-see. cn dollars and seventy six cents, ($81,585,- 667.70,) of which nine million six' hundred and eighty-four thousand five hundred and thirty-seven dollars and ninety-nine cents; ($9,084,537.99,) were applied to the payment of the public debt and the redemption of treasury .notes with the interest thereon, leav ing in the treasury.on _July 1, 1858, being the commencement of the.present fiscal year, six million three hundred and ninety-eight thousand three hundred and sixteen dollars and ten cents. 06,3 4 .38,316.18. -The receipts into the treasury, during the first quarter of the present fiscal year, com mencing the Ist July, 1858, including one half of tile loan-of twenty millions of dollars, m:ritli the premium upon it authorized by the act of 14th June, 1858, were twenty-five hundred and thirty thousand eight hundred and s - eventy-nine dollars and. forty-six cents, ($25,230,879.40) -and the es: timated receipts for the remaining three qnarters to the 30th June, 1859, from ordin ary sources, are thirty-eight million fire hun dred thousand dollars, ($28,500,000) making with the balance before stated, an aggregate of seventy millionlkne hundred and twenty nine thousand, one hundred and ninety-five dollars and fifty-six cents, (670,129,195.- 50.) The expenditures during the first, quarter of the Tresent fiscal year, were twenty-one million seven hundred and eight thousand one hundred and ninety-eight dollars and fif ty-one cents, ($21,708,198.51,) of which one milion and ten thousand one hundred and for ty-two dollars and thirty-seven cents ($1,010,- 142,37) were applied to the payment of the public debt and the redemption of treasury notes and the interest thereon. • The estimat ed expenditures for the remaining three quarters to the 30th June, 1859, are fifty-two million three hundred and fifty-seven thous and six hundred and ninety-eight dollars - 111nd , forty-eight cents, 062,357,098.484 making an avregate of seventy-four millions sixty= five thousand eight hundred and ninety-six dollars and ninety-nine cents, ($7065,886,- 99,) being an excess of - expenditure, beyond the estimated receipts into the treitsury from ordinary sources, during The fiscal year to June 30th, 1859, - of three Million nine' hun dred and' thirty-six thousand seven hundred and one dollars and -forty-three cents, ($3,- 036.701.33.) Extraordinary means are placed by law within the command of the Secretary of the Treasui'y, by the re•issue.of treasury notes redeemed, and by negotiating the balance of the loan authorized by the act of 14th June, 1858,i0 the extent of eleven millions of dol lars which,. if-realized during the present cis - on the first day of July. 1859, of • seven mil lion sixty-three shousand two hundred and ninety-eight dollars and fifty-seven cents, ($7 063,298.577) The estimated:receipts - during the next fis cal year ending.3oth June, .184, are sixty two millions of dollars ($62,000,000,) shish, with the above estimated balance of seven million sixty-three thousand two hundred and ninety-eight dollars and fifty-seveweents, ($7,063,298.57) makann aggregate for the .service of the next fiscal year, of sixty-nina million sixty-three thousand two hundred and ninety-eight dollars and litty-seven cents, .069,063,298.574 The estimated expendit. tires (luring the next fiscal yearending 30th June, 1860, are seventy-three million one hundred and thirty-nine thousand one hun dred and forty-seven dollars and forty-six cerit5,i(593,149.147 46,) which leavitt defic it Of estimated means, compared with the es timated.expendit ures for that year, commenc ing on the Ist of July, 1859, of four million and seventy-five thousand-eight _hundred and forty-eight dollars and eighty-nine cents, ($4,. 095,848,89.) In addition to this sum, the - Postmaster General will require from the treasury, for the service of the Post Offim Department, three million eight hundred and thirty-eight thousand seven hundred and •twenty-eight dollars. ($3,838,726) as explained in_the re port of the Secretary of, thcTreasury, which mill increase the estimated deficit or. the 30, jutie, 1860, to seven millions nine hundred and fourteen thousand five hundred and sav ent2y-six dollars and eighty-nine cents, ($7,- 914,576.89.) To provide for the payment of this estimat ed deficiency, which will ho increased by such appropriations as may be Made by Con.- gress; not estimated for in the report of the Treasury Department, as well as to , procide for the gradual redemption, from year to year of the, outstanding treasury notes,' the Secretary of the Treasury recommends such a revision of the , present. tariff as will raise the k required amount. After what I have al ready said, I need scarcely add that I. concur in the opinion expressed in his' report-,-that the public debt should hot be increased by an tulditianal loan, and would therefor e strong— ly urge upon Congress the duty of making; at their present sessions the necessary prow-, sion for meeting these liabilities. The public debt on the Ist of July, 1858, the commencement of the present fiscal year, was $25,155,977 66. • During the -first quarter of the present (iv cal year, the sum of $r0,000,000 has been negotiated of the loan authorized by the act of 14tit'ofJune; 1858—making the present outstanding public debt, exclusive of treaNu ry notes; $35.155;777 60. There was on the Ist July, 1858, of treasury notes issued by authority of the act of December 3 , 1857, unredeemed, the sum of 019,754,800—mak ing the, amount of actual indebtedness, at that date, $54,910,877 66. To this will be added $10,000,000 during the present fiscal year--;-this being the remaining half of the. loan of $20,000,000 not yet negotiated. The.rapid increase of the public debt, and the necessity which exists for. a modification of the tariff; to meet even the ordinary ex penqes of the government, ought - to admon ish us all, in our respective spheres of duty, to the practice of rigid. econtinay. The üb. jests, of expenditure should be. limited hi number, as far as ibis may be practicable, and the - appropriations necessary to carry them into effect, ought to be disbursecrunder the strictest accountability.: Enlightened newel does Aot consist u the ritual to =ME ... • . es, essential-. tor the - defence,- progress and . protterity..of the ripbblie, but in taking care that mine,orthis:MistreyAiir*. wasted - by .miinisTACeoe4; application -to Opendi fora at-,ihe:Oirrielitne...-anikihst, it,. was ten or twenty yenta ttgo;ttre The rapid increase of our country iii 'ettent and population; renders a corresponding in.. creaseof expenditure,-to some extent, una voidable. This is constantly creating .new .objects of expenditure, and augmenting 'the. amount required fur the old.. The true clues. thins, then, are, hare these objects been en: necessarily multiplied Y or; has the amount expended• upon any orall of them, been larg er than comports with due economy I In ac cordance with : these principles, the, heads: of the different executive departmenti of the . governments have been instructed to. reduce their estimates for the next fiscal year to the lowest . standardssannistent with the e ffi cienCy -of the service,,,and thisi duty ,theY have -per. formed in a spirit of just economy. • The estimates of the Treasury, War, Na. vy "and Ifiterior Departments, have each been in some degree -reduced ; and unless a stul , den and unforeseen emergency should arise, it is not, anticipated that a deficiency.svill ex ist-in either within the present or the next fiscal year. The Post-Office Department is placed in a peculiar' position, different from the other departments, ,and to 4EO3J 'shall hereafter refer: F- I invite Congress to institute a rigid stru tiny to ascertain whether the expenses in all the departments cannot be still further re duced; and I promis'e them all the aid in my power in pursuing the investigation. I transmit herewith the reports made to toe by the Secretaries of War, of the Navy, of the Interior, and of the Postmaster Gener al. They etch contain valuable inforMation and important -recommendittions,.to which I invite the attention of Congress. In my last annual ,niessage,l took occasion _to recommend the immediate construction of - ten sntall steamers, of light 'draught, fir the purpose of increasing the efficiency of the na• vy. Congress responded to the recommend ation, by authorizing the construction of eight of theni. • The progress which has been made in executing this authority, is stated in the report of the Secretary of the Navy. I con cur-with him in the opinion, that a greater number of this class of vessels is necessary, for the purpose offrotectingin a more efli nient manner the, persons and property of Xmeriiern citizens-on the high seas, and in foreign countries, as well as guarding' More effectually our own coast. I accordingly rec. ommend - the passage of an act fur this pur. pose. The suggestions Contained in the report of the Secretary cf the Interior,eapecially those in regard to the - disposition of the public do ,main;the pension and bounty land system, the policy' towards the 'lndians, and the amendment of our patent laws are worthy' of the:serious consideration of - esingress. , - The Post-office Department occupies a po sition very -diffitrent from that of the other departments., For i .many years •jt was the policy-of the govirnment to' render thii a• self-sustaining department ;Tend if this cannot now be accomplished, in the present condi tion of the country, we ought to make as near an approach to it as may be practicable. The Postmaster General is. placed in a most' embarrassing position by the existing laws.. He is obliged 'to- carry these. into ef fect., lle has no other alternative. He, finds", however, that this, cannot he. done without heavy emands on the treasury, over and above what he raised for postage; and:these have been progressively increasing from year to year until they amounted for the last -fi , s cal year 'ending on-the 30th., Of June, .1858, to-more than four *lions Mid a half of dol lars : whilst it' is estimated that for the pres- 4.3,00 . 4 4 000. The sums are exelisive,of the annual ,appropriation of *700,000 for " compensa tion for the mail service, peiformed for the two . houses of Congress and the other depart ments and officers of the Govenunent in the transportation of free matter." • The cause of these large deficits is mainly attributable to the increased expense of trans porting the mails. In 1852 the sum paid fur . this service was :but a fraction above four millions and a quarter. • Since that year it has annually increased until in 1858 it has' reached more-than eight millions and a quar ter, and,tor the service of 1850, - it is ten that it w il l amount to more than ten Mil lions of dollars.. 'The receipts of' the Post-ogee Depart ment can be made to approach or to equal its -expend iturec ly by means of the legisla tion of Congress. In,applying any remedy, care should be taken that the people' shall not be deprired of the advantages, which they are 'entitled to enjoy from the Post•offico Department. The principal -rem-. edies.recommended to the consideration of Congress by the Postmaster General, are to restore the fbrmer rate orpostage upon _sin gle letters to five cents.;, to - substitute for the . frankin. p privilege the deliveri,to those . now entitled to_ enjoy it, of post 'ollice stamps - for their correspondefice, - and to direct the de pertinent, in making contractssfor the 'trans portation of the mail, tnconfine itself to the .payment of the sum necessary fur the single purpose, without requiring it to.be transport ed in post coaches or carriages of any pantie:, War description. - "Wee the present system, the expense to the government is greatly . , in. creased, by .requiring that the mail shall - be carried in such .vehieles'ai will accommodate passengers. •Thiswill be done without ,pay from the department. over. all roads where , the travel will tiemunerate the contractors. These recommendations deserve the grave consideration of Congress..." 1 . would again call your attention to the construction of a Pacific railroad. Time and reflection have but served to confirm inc in the truth and, justice oldie observations . which made on this subject, in my last annual Message, to which 1. beg most respectfully to refer. : • • It is freely admitted that it would be inex pedient for this government to, exercise the power of constructing the Pacific railroad by. its own immediate agebts. Such 'a policy would increase the patronage of the execu• tWe to a,dangerotis extent,' and introduce a system of jobbing and corruption which. no . vigilance .on the part of federal oficiali, could either prevent . or stleteet. " This can only be done by the keen eye, and - the active and careful supervision of individual and private interest.. The construction of the road ought, there fore, to be committed to companies incorpor , ated by the States, or other agencies whose pecuniary interests would be direetly involv ed. Congress might then lyMist-thern in the work`by grants of hand or of money, or of both, under such conditions and restrictions as would secure the transportation of troops and munitions of war free from any charge, and that of the United States snail ak a fair and reasonable price. • The progress of events since the com alance meat of your last session, has shown bow soon difficulties disappear befiare a firm and determined resolution. At that time, such a road was deemed by . wise and patriotic men, to be a• visionary project. The great,Oistnuee to be overconie, and the , interyuntpg mount' aims and deficits in the * . way,' were ; obstacles Witieit optgioi ofu tN could AA -b. ithriritannt ; , 00.,40Wei'the la*. Of lag• a e been die. critr,ered,tire kn . :formidable. than the y were supposed to be ; mail'stages,.wi r h pa.wo gitursTh now poi and, repass regularly, tWlter.Atti.Oach week,.hr a-:common yaw n) readlietWeen•San 'Francisco and St. Lou;, and Memphis, in less than twenty-five day s , Tie service has been as regularly. performed as it - was,' in former yeah, between New York find this city. Whilst disclaiming all authority to app s prime money for the construction of-this road , ',, except that - derived,. from the war.maht m , power A. the constitution, there,' tir e import' • ant collateral considerations ;ur ging es to 00 . dertuke the work:as speedily as possible. The first and-Mast - moinentous•of theie that such a road would be ti powerful bond iif union between the States east Mid. we,t_ o f the Rocky motifitainii. is so dent as ; to require no .illustration.* . • But, again, it a cornmerelal point of view, I consider this the great question of the day. With the eastern front of our republic stretch. ins along the Atlantic, and its 4 weitern front" along the Pacific, if all the !parts . shoidd b e united by a safe, easy, . and; rapid :Intercom. - rouniention, we must necessarily conimand very large' proportion .6f.the trade both of Europe and Asia. • Our resent treaties:with China and :lapin will open these rich and populous empires to our commerce; and the history of the world proves that the nation that bee gained • sion of the trade'with Eastern Asia, has at• ways become wealthy and powerful; Th e _ peculiar` geographical position of Californi a and our Pacific posseisionsinVites .American capital and enterprise into this fruitful field. Tu icap the rich harvest, hpwever,, it is' nu indispensable p re-requ isi te,- that .we shallTrst have a railroad to canecy and circulate its products throughout every portion of the tie. ion. Resides, such a railroad through our temperatelatitudewhich would riot be irn peeled by the frosts and stiowa of - Winter, nor by the. tropical heats of summer, 'Would at tract to itself much , of the travel ,and trade of all nations passing hetween Europe and Asia, On the 21st of August last, Lieut. J. N, Matra, \ of the United "States • brig Dolphin,. captu-red the slaver. t., 4 Echo," (formerly the .Putnam of New Orleans) near 'Key VerdC, on the coast of Cuba, with more than three hundred African •negroes on 'board. The prize, under the lionimand . Of Lieut. Bradford• of the United States navy, arrived at Charles ten on the 37th' of August; when the lie. ;;roes, three hundred and six ittnuml;er, were delivered into, the" 'custody: of the United States marshal for the district . of South Ciro.' ling. They were placed in Castle Pinckney, and afterwards in Fort Sumpter, for safe- keeping, and were. detained there until the 19th September, wirer), tLe siirvivors, is hundred 'and smenty.pne in- number, were delivered on board the United States•steamer Niagara; to be transported to the coast ref ,Africa under the chiirg& the agent of the United States, pursuant to the provisions of the act of the 3d, 'March, 1819, =• illy addition -to the acts prohibiting the slave trade." Under the 2d section . this act, the Presi. dent is "authorized to make such regulations and arraiigemeots as he 'May deem expedient for the safekeeping, support and removal be yond the limit of the United States, of all such negroes, mulattoes or persons of color" captured by vessels of the United Stittes, as may. be delivered to the marshal of the die. triet into which they are brought, " and tuar point a,proper person or persons' residing up. on the coast of Africa, asiagent or agents fir receiving the negroes, mulattoes or persons of color, delivered from on beard vessels 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 term= that thts, President was author. tt t .- cha cafert:Aprking support and remover of these ne n trroes up till the time of flick delivery to the -agent on the coast of Africa ; but no express :provieion A was made fir their: protection and support after they had reached the place of their des tination. Still, an agent was to be appointed to receive them in Africa; .and it could not have been supposed that 'Congress intended he shtjrld desert them at the moment they'• were eceived„and turn them loose on that inhospitable coast to perishior want of food, or to beeoroe again the victims of the. slab trade. Had this been the intention- of iron. gress, the emphiyment of an agent to receive them, who is required to reside on the coast, Was unnecessary, and they might .have been landed. by bur .vessels anywhere in . Afritia, and left exposed to the sufferings and the fate which would certainly await them. • Mr. Monroe, in his special message of 17th. of December, 1819, at 'the first.session after the act was passed, announced to Congress what; in his opinion; was its true Construe. tion. He believed it to be his duty under it, to follow these .unfurtunates . into Africa, and . make provision for_ them - there, they 'should be able - to provide for themselves, -la cornmuniosting• this interpretatien of the act of he stated That sonic doubt had been- entertained - as t - ) its true t• question and meaning, and he submitted .the to them,-so that they might, .‘should it he deemed advisabld; amend the . seine before farther proceedin g s are had under ni Nothin was done• -by Congress to explain the set, ac e d Mr. Monroe proceeded to carry it into execution according to his own inter pretation. This;.theri, bmame . the practical construction.' - 'When - the Africans 'from en board the gehO;Were delivered to: the mar shal at Charleston, it became my duty-to con sider whatslisposttion'ought to be made of them under the law. For many .reasens, it was expedientto remove them from that lo cality 7as speedily - as possible. ..Alttiongh the conduct of , the authorities. and citizens of Charleston, in giving coantenance'te tho_e4e eution of the law, was just what,. might have .been expected from. their. high character, yet -a prolonged - continuance of three hundred Al ricans in the immediate vicinity of that city, m could not have failed te.becoe S. source . of inconvenience and anxiety to its inhabitants. - .Where to send them,,.' was..the , question:— There was to portion of the coast of Africa to which they rernoved..with any regard to 'h On a Ili ty;'except_to_Lihetia.. - Under. theie 'circunistanees, artjtgreement was entered into with the. Colonization Socie• ty on:the 7th of September list, ej . copy of which is herewith transtnitted, jinder which" the Society engaged for : the:consideration of forty-five thousand dallars, t 3 ..receive-. these Africans ,in Liberia - from. the -agent of the United States, and furnish . them "-during. the. period of mmyear:thereafter, - )th . conducts ble.shelterelothing, prcivisiorKiiiid medical attendauee, causing the children to receive schooling; `and= nil, .whether children _or • adults,=to„be instructed in thearts of civilized life, suitable to . their conditiOn„ - - - This aggregate'of forty-five thousand dol lars Was based - upon 40110 - want* of one hun dred and- fifty. dollars for each individual, and - as there haktiesn..,considerable - mortality, a- Itismg - thetu, and ennty .be More before they reach Ailiea„the'society haVe.agreed in an equitable epirtt, ;. each to' make .tich•.'es-:d'eduction fruits the,antount,.att under . , the cirtnimstatices May . appear lait-:and,reasnuable.::;This can nut be fixed until . we shall .-asce,rlaiit....the xa teal, number- Which - Mai baceineittil-charge to 1,110 society: .It,iing.“llpiillloittetly 02,1tikuiiiimder an