remained unredreosed. Itentonstrances a 'plinst•thette crierances - hare been. addressed, without effect, to-that government.; Mean: time, in various`: parts of die Republic, _ in tances have been. numerous: of the murder. imprisonment and plunder of ou citizens,' by different parties olaitning; and, exercising a ; but the central govern ment, althbugh . repeatedly urged thereto,hare •made no effort:either to .ptinial the authors of those, outrages or to, prevett their recur rence. No. American'citizen C.:O now visit Ni?..xico on lawful but.ine .. without imminent 4ag . e.• to hi's person and property. There-is no adequate prctection 'to tiiher, and in this respect our treaty with that tepublio is almost a dead letter. ' . This _state o f affairs was brought to a crilz:is Itay • last by the prcrmult-rateri•of a decree tevyitgaventribution pro rota upon all the capital in the republic between certain speci fied.. amounts,' whether held by Mexicans or foreigner's. Mr. For4th, regarding s thii de• cree in the light of a "forced Joan," formally protested against its application to his conn • rtyruen, - tud. whined them not to pay the dontribution, but to suffer it to be forcibly dzacted. Acting upon this advice, ari Ame 4inall citizen refused to pay the c,ontribution, And his property_ was seized by aimed men - to sati,fy the . amount. 'Not content with t4is, rite gove.rnment,proceeded still further, fild issued a degree banishing 'him - from the country.. Our minister imm — ediatelyi notified ihem that if this decree should be carried in .. toexecutionle would feel it ,to be his duty m adopt "the most decided measures that be tong tg, the powers and obligations of the re presenTative office Notwithstanding this - warning, the banishinent was enforced, and Hr. Forsyth promptly announced to the government the suspension of the political relationlito his legation with them, until the pleasure of his own government squid be • riscertained. This government did-not .regard the con tribution imposed by'-tbe decree of the I.sth May- last to be in strictness a "forced' 10an.," End as such prohibited by the 10th article of the treaty of 1826 between Great Britain and Mexico, to the benefits of which. Ascneri cian citizens are entitled by treaty; yet the inspositiork:of the contribution upon foreig ners was considered an unjust and oppressive measure. Beshles, internal factions in mho parts of the Republic 'were at, the same time levying similar exactions upon the property Of our"cittzens, and interrupting their com merce. There bad been an entire failure on the part of our minister, to sernre re&ess for the wrongs which ouricitizeni - had - ,endured, notwithstanding his pet severing efforts.. And from the temper ...manifested-by the Mexican government, be Lad repeatedly assured its that no favorable change could be expected, until the United States `give striating evnlence of their will and power to protect their citii.. - ens," and that "severe chastening is the- only earthly remedy . for our grievances." From thisstatement of faots it would have been worse thanidle, to direct Mr. Forsyth to re trace his Steps tud resume diplomatic rela. tions with that government and it west therefore, deemed proper., to sanction his ‘iiihdrawal -of 'the legation from the city of Mexico.. - Abundant cause now unttoubtedly exists, for a resort to hostilities against the, govern ment still holding poseaa.ion Of the capital. -Should they succeed in subduing the con 'stitutional forccs,all reasonable hope will then have end'red of a peacerUi settlement of our On the other hand,should the constitution- sl party'pret:ail, and their authority be es:: fahlishetl over the'republic, these 'is reason to hope that they tsilr be animated by a less unflieudly'spirif. and mae , graht th.• --""" to Amerkan citiekos yeetice requires, E 0 far as they, may possess the - means. But for this expectation ; I 4:ould at once bare re commended ;to Congress to grant the neces 'airy power to.the President,to take possession of a_sutrici.eut portion of the remote and. un sealed territory of ltlexico,to be held in pledge until our injuries shall be .redressed and our just demands be satisfied. N'Ve have already exhausted every milder means of ,obtaining justice. In such a case, this remedy of re ! . prisalsis recognized by the law of nations, not only as just itself, but as a means of pre venting satin! war'. . Blit there. Itianother.viett 'of our relations with Mexico, arising- from the unhappy con dition of affairs alongour southwestern front ier' whieh demands immediate.aetion. In that iernolo tEgioti, where there are but few White inheLitanti, large halals Of hostile and predataty ludiens romn pro's ise.nonsly over the Mexican Stat.4;s of Chihuahua and Sono ra, and our adjoining Territories. the local go‘ernments of these States ,Wie perfectly helpless, and are iept in a State of constant alarm by the ludiats. They haVe.'not the p4'ir, if t,liey possessed the will * even to re strain lawiet-alexicans from passing the border end committing depredations on our remote se s ttisrs, A state of anarchy and violence recalls throughout that: distant frontier: - The / lass are a death letter, and life and property ' I are wholly - insecure. -For this reason the -aittlettect.of Arizona is arrested, while it is of great hiparfatice thnt a giutin of inhabit- ' tuts extend all; along its southern •Swid - cr,sulTicieni for their own protection and that of the United States Mail passing to and frqm Caliturnia. Well founded apprehensions ere now entertained that the Indians, and wandering Mexicans, -equally lawless, may hreali up the 'important stage and postal corne3usio..ltion ret.eutl7 established between ore Ad . :in:au and Nan poessions. This past-es very near to the Mexican boundary, • throughout the whole length of Arizona. I can imagineno - possible remedy for these evils. and an nuebrouf restoring law and order on tkt I.i-44W:unsettled frontier, but for the goiernrwat, of the I.7nited .Stsites to as mu ne a temporary Prolectorate over the northern portions of Chihrta-hua bud €onora; and se establish military posts trithin the.' e.arne—rte this earnestly recommend to Congress. This, protection tnay be with drawn, as soon a local governments shall be established in these. Mexican Status,, capable of performing their duties to the United States, restrarning the lawless and preserying peaceslong the border. I da rot 6at 113:, tor are will ht . tiered in it friendly spirit by the governeents and - people of Chihnahint . and Sonora, es it 141 rate equhlly effecfni4 for the protection of.their citizens on tit- remote tad _ /awls* fren4r3as for citive,as of the United Suites, dad in ttzhs oateedon, pee:, it Aloag. your . Attentiott :the condition of Arizona. Tire pOlielatiee of that Territory, numbering, as • 4411 Aged, more than ten thousand souls, kre pinetically, without a government, with out :Its% at I , lll o _ ll 11 any regular admiDis ti*tion of patios. }fOxief sod other crimes ire Dom mitti,d with iropatily. This state of tlaisigasaila kondlpfirr rectum ; sod I , "there.' ore s repea4 eve re.nonytne',odation for the es.l tablishearat of e teraterial 14V4V1113031t eereri Arianosc. Thakpolicioid:oendition of the tyro* lath. Inns sof -01ntratAtoeries througiswhich sit matespatit, betwaim the Atlantic sad A cific-Oceans,liresent s stdajeat of der, interest to Al(notanascial - nations. h ii.:.over the" transits, that*.proportion trade and srucei bet y _ wean 110 PaPPlikalail Asiatic iii - clusti2o4 41 pees. r 4 ). • the ".'f•#S. S' t ' fr , r"1 14 4 , 4 •vfiw,-.ll..oTaMek importance, as a means of communication between their Atlantic` and raeilic possess. ions. l'he latter now extend throughout seventeen degrees of latitude on the Pada coast, embracing the important State of Cali fornia and the flourishing Territories of Ore/ gon and Washington. - All commercial `nab l tioas, therefore , haven deep and direct inter: est, that - these communications shall he rendered secure from interruption. If an arm of the sea, connecting the two oceanti, penetrated through Nicaragua and Costa Rica, it could not 'be pretended that 'these States would have the right to arrest or- re tard its - navigation, to the, injury of othrir nations_ - The transit by laud over the nes rdw isthmus occupies nearly the same posi don, It is a highway in which they theni ,iselves have little iuterest,vs hen coMpared with the vast interests of tire Test of the wilt' :1 Whilst their rights ef sorerefignty ought o be respected, his the duty of otter nations io require, that this rreportant passage shall not be interrupted, by the elvil we:S . -and revol- I it tionnry - outbreaks, alichhave to frequent y occured in that region. The stake itktoo ina. Torten', to be left at the mercy of rival conk patties, claiming to hold convicting contracts with NicaragOa. The conlmerce of other nations isrot to stand still and 'Resit the al• justrnent of such petty controversies. The government of the 'United ,States expect ho more than this, and they, will not be satisliesl with less.. They would not, if they con! i d, derive any , advantage from . the Nicarag u a_ transit, not common to the rest of the wor d. Its neutrality and protection, Tor the common use of all nations, is their, ally object. They have no bltiection that Nicaragua shall de• mand and receive a fair compensation, Trcim the eompanics and iedividuals who mtty traverse the route; but they insist that it shall never„hereafrer be closed, by anarbitr+y I decree of that government. If disputes.arise between It and those with whom they May have entered into cenfraets, these must be adjusted by -some fair tribunal provided iiir the purpose, and' the , toute Must tot be Closed pending the controversy. This is our wlible policy, and cannot fail to be acceptable Ito other nations. 1 All these difficulties might be avoided, if, consistently with the good faith of Nicafistu'a, the use of this transit ould be thrown d n to general competitio *; providing at he Fame time for the pa t i merit of a reasons le rate to the Nicaraguan ;government, on as sengers and freight. 1 , to august, 1135 t, the Accessory Transit 'Compay made its first inttrocemdc trip ciVer the Nicaraguan route, and continued its sac- L eesful operation, with great advantage to the public, until the 18th Februhry, ,1866, w en it. was closed, and the grant to this company', as well as its charter, were summarily and arbitrarily revoked by the eoternment of President Rivas. ' Previous to this date, however, in 1844,,sariaus disputes to1n6•11- ing to ;slttlement of their accounts ;had arisen bei4een the company antlthe ger ru men:, thrcattning the Interruption of the route at :My moment., These the LT iced States in vain endeavord -to compose. It would be useless to narrate the Various ro ceedingswhich took place between the ar ties, up till the• time when die transit discontinued. Suffice it to say that, February., 1158, it" has renthineli greatly to thu prejudice of citizens 0r dusted States, Since time .tithe the en titian has ceased between the rival rout Panama and Nicaragua, and, in conseq thereof, an onjost and nnreasortahle am has been exacted from our citizens for • passage-to and.from Califordia. - , A tre aty was , s t i 11 3 0 63 tse_ re " tai; of N... an - dminister of I.Cicarrigua, under the latious of whiaillie use and protection d transit route would have been seemed only to the United States, but egally t, other nations. How and, on what .ptl this trety has failed to receive the ratift: of the Nicaraguan governmeht, will a by the papers herewith communicated.' the State Department. The princi jection seems tO have been, to the pro authorizing the United States to emplo to keep the route Open, in case liica . .. ... . . should fail to perform her duty in this From;the feebleness in that republic, i quent ehangesn(goreloment, and its scant internal lissensions, this had bec., most important stipulation, and one ly necessary not milt for the security routti, but for the safety of American c passitg and repassing to add from our fl; posFes.(lans. Were such a stipulati brp.oetlin a treaty between the Unite& and-ls:learagua; the knowledge cf th would of itself tnost,.probably prevent partiCs trotti-ccnitiittite Aggre.sions route, and render our antual interfere its protection unnecessary. _ The etieutive government in dais enuntry, 7 in its inteicourka witii_ s foreign nations, is limited, to the ; employment of diplomacy alone. ' When this fails, it, can proceed no further. ,It cannot legitimately retrt,..to forks, without the direct authdrity o ::.Con gress, except in resisting and rebellibg bostile attacks. It would have no authority t .enter , the territories of I,ticaragua, even to tete& -the deltructiou of the transit, and pro eat the lives and property of our own citizens n their passage. It is true, that on a sudden inerg ency of this character, the President{ would direct any armed force' in the viol city to march to their relief ; but in doing this be would act, upon his own responsibilit: • tilde t1.1.e circunstances, I eat nt___ _ _ 'c o_a, 'commend, to congress, the passage o an act authorizing the resident ; under au b res trictiops as they may deem proper, to c mplby the land and naval forces of the United States in *preventing the !mirth fr : being obstructed or closed by lawless violen and in protecting the lives and property s of Ame rican citizens travelling thereupon, requiring at the same time that those forces Shall be withdrawn the moment thUdanger shall Lave passed away. Without such a provis i ion, our citizens will be constantly exposed to inter ruptionn in their rrogirets, and to lawless via= lener. - t . A similar teeessitk exists for the of such an act, for' the protection Panama and Teimadtepec.routes. , In 'reference to the' ?anima route; the United States, by their existing treaty with New Granada, expressly guarantee .he nen h' trality of the Isthmus, "with- the riew that tha ins transit from the. ne to de her sea AsS, he interrupted oviscisarr in ;Any -future time 'while .thiir, treaty exi to." In, isgard to 'the Tehuantepec rout which ha& been recently . opted -ceder ' *Ault favorable auspices, our, treaty with Mexico of thei3Oth December, 1658, secur to the I citizen* of the United States a right of trim, sit over it for their persona and Etter handizo, and stipulates tint neither governm tit shalt 1 oterpoat. any obstacle" , tbereto, It alao 1 concedes to /Wired States tire right. to i . eraosport swore the /admits, in bags, the mails of the United States not intended for distritattioci- *loot the hie of- hit oom munication ; ako, the , effects of t United States, overnment audits citizens w lab may las intended for transit,- and not for distrilau , tit% an the /sancta, foie of custo m *one or other obarges - byrAtitillesloan goy t." Those Peaty a . tirilatirros rrith Ntir ) Gram -4a and Meeino. to Aidition s tothe wider'.. N.,TIC ArrliC*Fkl t'l !be I . 7 7rPrlgva T I I: #l4.tiern t to require legislation for the purpose of carry- l ing them into effect. The injuries which have been inflicted up on Our citizen's in Costa Rica and Nicaragua, during the lasi two er three years, have re. ceivefi the prompt attention of this govern.- meta. , Some of these injuriesvere of the most aggravated chatectetr. the transaction of Virgin Bay. in - April, 1.85 e, when a company of unarmed Americans, who were in no way connected with any belligerent conduct or party, were fired upon by the troops of Costa Rica,and - trumberiof andvtounded, was brought to the knowledge of Congress by my predecessor soon after its occurrerce, and *as also patented to the goverment of 1 of Costa Rica, - for that immediate inVestiga tion and redress which the nature of the case demanded. A similar course was . pursued yrith reference to of outrages in these countries,' some of Which were baldly less aggravated in their chiracter than the trans- Retied at Virgin' 'Bay. At the time, bow eVer, When our present minister to Nicaragua was appointed, in December, 1857, no redress had beet obtained for any of these wtongs, abd no reply even had been received- to the demands ithich had been Made by this goveniMett 'upon that °Mosta Rica, more than tv year. before' • Our minister was in struCled;therefere, to lose no time in /Oats ing to those governmentslhe deep regret with (Lich tne I t resident Lad witnessed this lb -attention to the just eititos of the United Stales, And in demanding_ their promlit kid satisfactory adjustment. 'Unless this &brand shall ,e complied with at au early day, it wit only remain for this government to adopt such other measures as may be necessary, in order to obtain for itself that justice which it has in•vain attempted to secure by peacefal Mewl, from the governinent of Nicaragua and Costa Rica. While it has shown, and will continue to show,the most 'sincere regard `for the rights and honor of these republics, it "cannOt permit this regard to be 'met by an utter neglect, on 'their part, of,'what is due to the gorerautebt and • citizens pf the United. . States. •Againstt 'New Gradatlis we have long , standing causes of complaint; arising out of the unsatisfied claims of our citizens upon thatrepel:4in; and to these hate been more recently added the outrages committed upon our citizens at Pimiento in April, 18:i8. A treaty for the adjustment of these difficulties, was concluded by the Secretary of State and the minister of New Granada, in September, 1857, which contained just and acceptable liroviiiting for that purpose. This treaty was transmitted to Bogota, and was ratified by the government of_New Granada t but with I 'Certain amendments. It was not, however, returned to this city until after the dose of the last session of the Senate. It will be immeaiately transmitted to that hody for their advise and consent; and shobld this be obtained, it will remove our existing causes of complaint against New Granada on the gubject of claims. Questions have arisen between the two governments, as , to the right ofliew,Granada to levy a tonnage ditty upon the vessels of the United States in its ports of the Isthmus, and to levy a 'passenger tax upon our citizens arriving in that country, whether with a de• girl to remain there or to pass from ocean to ocean by the trait route and also a tax upon thevurail of th 4United States:transport ed. over the Penazna_railroad. The govern ment of _New Granada has been informed, that the United States would consider the collection of either of these taxes, as an act • n violation df the treaty between, the two countris and As such would be resisted by CMS a n d s - wwir,v.sommr WILF - 14 , 0 prepared to discuss these questions - in a spirit of amity and jinitice,abd with a sihcerd desire to adjat them in a satisfactory manner. A negotiatidu fok that purpnie has already been commenced. o effort. has 'recently been made to collect these taxes, nor is any anti eipated,onder the present circumstances. With the empire of Braill our relatiOns are of the Most friendly ellaraoter. The pro. ductions of tbe OM countries, and especially those of an agricultural nature, are suhb as to invite extensile mutual eidhanges. A large quantity of American flour is consuthed in Brazil; whilst tonere shah treble the amount iu value of Brazilian coffee is con sumed in the tested States. Whilst this is the case, a heavy duty has been levied, until very recently, upon the importation of Acne , rican flour in Brazil. I am gratified ; how ever, to be able to inform you that in Sep tembei last this has bten reduced from $132 to about forty-nine cents per barrel', and the duties on others ankles of our production have been diminislied in nearly the same propoition. I regret to Mat& that the government of • Brazil still continues to levy an export duty of about:ll pei Out, on coffee, notwitbstanrf. ing this article is admitted free from duty in the United States. This is a heavy dlerge upon the consumers of coffee in our country, as we pnrchase half the entire surplus prop of that article ri-i•tl in Bralil. Our minister, under instructions ; will reiterald his ettorti to have this export duty removed, and it is hoped that the enlightened governs/lent df the Emperor will adopt the wise, just, and equal policy. In that event, there is good reason to belieVe that the commerce between the two countries will greatly int.:raze, Much .to the advantage of both. Tuts claims of our citidens against the government of Bratil,are not, in the aggro gate,. of Very large amount ; but some of these rest upon plain principles ofjustice,and their settlement ought not to be longer de laged. A renewed and earnest; and I trust a successful effortmill be made by our. minister - to,i?ructire their final adjustment. . On the 2d.of June-last, Conrail passed a joint resolution authorising. the President "to adopt such measures and use Such' force as, in his judgment, may be betemary and ad visable" "for the puipose of adjusting the differences between the United States and the republic of intrakruay, in connection with the United on the niteti States-steamer Water. Witch, and with other motivates referred to" in his annual message. And ,on the 12th July following, they made an appropriation to defray the expenses and 'compensation of e commissioner to that republics, should the l i residene deem it proper -to Maki such an appointment. - . In coaTliattco with these eneettlents, I have appointed a commissioner, wbo hits proceeded to Paraguay, with full powers and instructions to settle,these difficultieskin any amicable and peaceful Ettanner.if this be prac ticable. His experieree and' discrdtion ;esti fy the hope, that he may prove successful In tonvincing the Paraguayan*., governntant, that it is due both to barn ,azolyustior, that They should volontmily and promptly make atonement for the wroggs .whinh they.here committed against the United State*. sad indemnify our bitted citisens whonalbay hav e forcibly despoiled of titer property: Should our eommissioner'prove gamenew ful, after a sincere and eruonst effort, to air complish the object of his *isogon, their no altematire will remain, but.tbe emplovment of force to obtain lust satisfaction 4 from Paraguay. b view of this continency, tit. saototary of the liavyi, under rey'direotioni has &tee out and despatched a fttivyl fora% to rendezvous sear Sues* Alm, which; it • is believed, will prove noo se pt for the on caaie n i' Mir earnest 4arite. however, the tn Pe t% of once outt .hair ration pear from ob ision EIS passage of the that it may not lie foniia - neeeseary to resort to thli last niternative. , When Congress met in December last, the business of the country had just been crush. ed,by one of those political revulsions, which ire the inevitable consequence of our un. sound and extravagant system of bank credits and inflated currency. With the elements of national wealth to abimdance, our Inane -factures were suspended, our useful public and private enterprises were arrested, and thousands of laborers were deprived of em ' plopnent olud•teduced to want. Universal distress prevailed among the commercial, manufacturing and mechanical classes. This revulsion was felt 4lte more severely in the United Sloes, betause simile:. causes had produced the like deplorable effects through out the commercial nations of Europe. All were experiencing end_ reverses at the same moment. . 1 0tir Manufacturers 'estlywhel4, suffered severely, not because of the recent ie: duction of the tariff of duties on imports, but because there was no demand at any prite 'for their productions. The ,people were obliged to re4riet themreve., is their purchases, to articles of prime necessity. In the g 'wars' prostratiet 'of buainess,tbe iron manufacturers in different States probably.. suffered more than any other class, and much destitution Was the inevitable consequence, among the great number of workmen who had been em ployed in this useful branch of our industry. There Ovid be no supply where there was no de:nand. To present an example,there could be . no demand for railroad iron ,' at er our magnificent ayatezt OT railroads, extending its benefits to every portion •of the Union,. had been trot:tight to +a dead phut. The Barrie consequences baba: resulted from similar causes to many other brancbes of useful Mane faittres. It is self evident that where there is no ability to ptrelume matufactured ar ticles, these cannot be sold, and censequettly must cease to be produced. No governmtnr, and tsytecially a govern • ment of itch tin iced powert s 3 thlt of the United states, could have prevented the late revulsion. the whole Confmtrci'll world seemed for years to have been rushibt to this catastrophe. The same eaidcuPs consequences would have followed , in- the United States, whether the autie, tpen foreign imports had remained as they were tinder the tart' of 1840, or-had been raised to a much higher standard. The tariff of 1857 had no agency in the-result. The general' cause, existing throughout the world, could not have been controlled by_the legislation Of any pahitte.ar coun try. The periodical levulsiont Whlelt lthvehkist ed in our past history, must continue to re turn at intervals, so long as,olir present un bontided eyttein of bank credits "shall prevail. They ivill, IlowbVer, prof itly be the less se. vere in future ; I)ecabse it'll hot to be ex pected, at least for Maby-years to cofne, that the_ coeirtieniial .tfations of tbrope; with whose • interests our own are so materially involved, will eiposift themselves to similar calamities. Ihtt this subject was treated so Much at large in my last *annual message that 1 shall not now probe it further. Mill, I respectffilly renew the tedevizniendation, in favor of the passage of alt deifolitt bankrupt law, applicable to bankinp; institutions. This is alkthe direct power omthe subject,whleh, I heliere, the federal governritent Rosses'aes. Such a laiv would Mitigete; though it riiitht not,nvevent the evil. the instinct of self preservation might produce a 'recite:ton:le restraint upon their banking business, if they knew iu advance, that a suspension of specie payment would inevitably prolluce their 6%11 death. ----- irgrc lTar - crIeCIII - Urtlltr4evuttbri are now slowly but surely our Away. The energy and enterprise of our cititens i with our un 7 bounded resoUrees, will, within the period of another yesti, '4u:ire a state of wholsome in dustry and trade. Capital has again acCe mulated hi ohr hale cities. The rate of interest is there very 'kir; . Coiallthiisce is gradually reviving;' and ad turd ai it is discos , . Bred that this capital can be rottahle employ. ed in commetetal anti mantifaisturing .enter prises, and itt the construction of railroads and other works of public and private im provements, pro-perity „snit again smile throughout the lana,, it is vain, however,, to dl.guise the fact frohi ourteleti, that a speculative inflation of our currency, Without . a corresponding inflation iii other countries whose manufactures coma, into competition with our own, muss ever produce disastrous results to one ripmestio manufactures. No tariff, shoit otabsolute,prohibition, can pre* vent the evil consequences. In connection with this soliject,it is proper to refer to our financial condition. The same calms which have prodoCed pecuniary distress throughout the country, bayis so re duced the amount of imports from foreign countries, that the revenue has proved inade. 'pate to meet the necessary expenses of the government. 10 supply the deficiency, Con grew; by the act of the 224 December, 1857, authorized the issue of $20,000,000 of treas ury notes; and this preying inadequate, they authorized, by the act of • fine 14th, .1858, a loan of $20,000,110b, "th tie applie d to . _ the payment of ,appropriations made by law .i No statesman would advise, that we should go on increasing the .tiatiotral debE to meet the ordinary ,e2penses of the governmegt. This would be a moat ruinous 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 true polity, 0 itscreaws thereveitheso as to . equal 'our expenditufm. It would be rainons to boatinue to borrow :- Wide"; it may be proper to observe, that'tke incidental protection, thtus.*rded by a revenue tariff, would at the present moment, to s a me extent, increase the confidence of the maerrfacturing interests, .and give t fresh impUlse to our reviving business. _To this, surely, no person will. °Neut. In regard to the Mode of assessing `and collecting duties under a. Strictly revenue tariff, I have leek entertained and often -ex -pureed the opinioo,that sound policy . requires this should be tien6 by spec dories in cases to which these cam be Erft . rpetlY &pried. They are well adapted ttti conimodities WbiCh dre usually sold. lif weight; or El measure, and which, from theii nature, are Ofequal or of-nearly 'eel value. Such,' . for example, are the articles of of different classes/raw. sugar, and foreign Wines and spirits. , In My deliberate judgureati specific duties are the Ring pot the only tin oar of securing the relent% against take * frandufeni an .. .. ... voices,.and such his fteeit the practice adopt ed for this purpose by oilier coinmerCial . ,o*. tions. llusrades, iyacitio duties would . sherd to thwiLigterican Maitgacturer the incidental adifaptages tit 4401 . be is fairly entitled under a revenue tariff. — Th . present svattun is a slidingicaltt tobisdi - antsge. ' Under it, when prices are high a apddbnsutees. presitif ens; the duties rise ie aftickdat whew . he /SW requires, tbeir aid. , On tine tiofitrart when prices fall, and be is , struggling wpm ad , varsity,, the duties are dialiddllKl 111 'UM Barre', proportion, gruff, . to. hit injury,,, Neither %Meld there be danger that a higher nits OS duty' (tau that. intendid- by emigres , * Pubt be lei44 - ligthw.:form4l l l*- eitearatiee. 1i would bo eriej , to amen/Wig the ;Wage Taltfeof any itlitported asti:ele, for o series air's% ; cod, instead of sabjeothut , t I t in ed ~ eforern eliity at &certain rata pci ceatum i to substitute iD its place au equivil eta specific duty. By such an arrangement the consumer would not be injured. It is true, be might ltive to pay 'a little more duty on a given article in one yeai ; butlff so, he 'mald pay a little less in ancither,and in a series Of years these would miunterbalatiCe each pther i - and amount to the 11010 think, SO far ae his inter est is concerned. This inconvenience would be trifling, when col:Amsted wi4 the ad ditional security thus afforded against (mods Ilion the revenue, in which everymonerunrer is directly interested. I have thrown out these suggestions as the fruit of my own observation, to which Con item, in their better judgment, will give ruck -weight as they may justly deserve. The reptrt of the Secretary of the Treasury will explnit An, detail the operations of that department of thegovernment. The receipts into the treasury _ from all Votfrces during the fiscal year ending 30thitne ' ISM, including the treitary totes - attlforited by the act of December 11 1 0., sveve 140;211,569 59, which amount,' with the balance of 617,110, tt4 27 remaining in the treasury at 'the comtilendetrrent of the year, made an aggre: sate ifor'tlfo service' of the year of /197,9,3, 9V3 1113. The pal7e etplemliteres - dtritg the ftcal year ending June 30th, 1858, attounted to eighty-one million five hundred and eighty five thousand six hundred and sixtv-seven dollars aiti twenty sixtents,(sBl,sBs,6B7 28.) of width nitre million vix lreedredttrl eighty :fuer thousand five hundred and thirty seven dollars and nidety-nitre cent*, ($9,68' 4,537 4 19.) were applied to the payment of the public debt, and the redemption of treasury Doles with the interest thereon, leaving in the treasury on July Ist, 1858, being the corn nrencemett of the present fiscal yesl, six mil lion three hundred and ninety-eight thetts'and three hundred and- sixt'en dtllers add ten cents, ($1,3,8,310 10.) The receipts into the tdslabry, durint the first qsartbr of the present fiscal year, emu meticieg the Ist Jule., 1838, including one half thn of the loan t'rf twenty ruillidis of tot lirs, With the premium updn it, authoriled by the act of 14th June, 1858, were t 'verity five itillion two hnuedred and thirty thousand eight huddred and setenty-nine dollars and forty six cats, ($2:3,23079 4t,) and the estimated receipts for the remaining three quarters to the 30th June, 1859; from ordi nary estivees, ere thirty-eight million five hundred thetVend dolltrs, ttet,501),020,) making with thb balance before stated, at ag gregate of 70million one hundred and twenty nine thousand one hundred and ninety-five dollars add fifty-six cents, (870, 120,19 4 3 et.) The expenditures during the first quarter of the presant fiscal year, war'o txreety.one seven hundred and eight thousand one littudied Ind ninety-eight dollars and fifty one cents, ($21,7013,198 51.,) of which One million ten thousand one hundred and forty two dollars and thirty-seven cent* 851,010,- 142 37) were applied to tbi n pltymetit of the petit%) debt and the redeMptien of treasury notes AM the interest thereon. The estimated etPendittlrts,dnring the remainitlg thrbe guar= tern to 30th tune, 1839, are fifty-two million three tundred and •fifty-seven thousand sir Intlldred add ninety-eight dollars and forte eight bents, ($52,357,698 49.) making an tiggiegate t:,rf bet•cuty-fotir nallfion sixty-five thousand tight botticl red and ninety-nine tents, (674,068,699 61),) being ati eacess of expen diture, beyond the estimated receipts into the treasury frfini orditutry e•dhrceo, during the fiscal year of the 35th Jude, 1859 of three nimx has rend arid thirtv•iix thagaianil seven hundred and one do l lars and Forty three cents, ($3;1:16,701 43.) nxtraordidary means me placed by law tvitliih the boibated of the Secretary of the 'treasury, by the reiWne of treasury notes redeemed, hbtl tsy nego dating. the balance of 114 loan authoriled by the act of 14th 'June, 1858, to the eiteEt of eleten million of dollars, whioh, rrealiied daring the present fiscal ydar, r,ili lesitt a balance in the treasury, on the trEt. (14 of Jelly, 169, of seven million sixty-three thousand two hundred and ninety-eight dol lars and fifty-seven center, (47,0634 1 A St) The estimated receipts dining the next flse.al year ending tfOth June, Id6o, are silty two Million, (tf12,001i,600,) which, with the above estimated balance - Of seven million sixty-three thousand , two hundred and ninety eight dollars and fifty-seven cents, (47,083,- 57,) make an eggregate for the near Esc's! yeati of silty-nine milion siity- chive thotikiiid two halo:110 and ninety-eight (W -him alit! fifty-seirere cents, R 19,063,2118 57) Thri estimated expeiid Lures during the next Wel Year ending 30th June, 1860, are seventv-thret milaoo one hundred and thirty nine iliciulaidd ore hundred and forty-seven dollars a:ld forty-sikeeits, ($3,135,147.4g.) which leave a deficit of estimated means; com- Plana —ii-Ls.chaiaiLibated expenditutes for that fear, boltilbedtibp; four add figenty'lve thoilsafid eight hundred and forty-eight dolled and eighty nibs cents, ($1,0751148 89.) In addition , to Allis sum, the Postihaster 4eneral will,require from the treasilry, for the service of the Post ()ince teliartmet, three million eight hundred and thirty-eight thodsinit seven hundred 'add twenty-eight dollars, ($,8613,718,) as explained in the re port of the Secretary of the treasury, .which will increase the estimated deficit on the 30th June, 1860, to seven million nine - hundred and fourteen %godsend nve behalf and Bei enty-six dollars, and eighty-nine cents, ($l,- 114,570 89.) To provide for the pat Meet of this estimated deficiency, which will be inc;eased by such appropriations as may be roods by Congress, not. estimated for in the report of the treasury riepartiffell; tlg well as to provide for- the gradual iedemptiah, from year to year, Cif the cietitetidifik . tidastify notes; the SetiretarY of the treasury recom mends snob a revision of the presint tirit as raise the required amount. After what I bate afieady said, I need scarcely add that I concur in the opinion expressed in his report —that the pittbdicilebt Atonid not be increas ed by an additioudt loan, and would there fore 6f ; rofigly urge Congress the, duty of malcinx, at, their _present sess i on, the ne- CariiiirY proirgioli or meeting these liabilities. The palie'debt on the let July. 1848; the commencement of the present fiscal year, was $25,155,077 8t During the first (trailer of the presitit yeir, the sent of tifi,bob,ooto has been negotiated of the loin setboriioi by the act 14th lUne, -1858—making ihe Present outstanding pub lic debt, exclusive of treasury n0te5,1135,15P,- 977 6(. Tare ws>ri on the first July;1850, of tressury - notei' idtitied by iirthority cf , act December 23'd,. 167" unre ' deem ' ed, the slim of Illo;'s4,Boorulaking the amountof, ao indebtednewii ;let date, ,1144,8t8`,= 777 el. To this, will, beidded 00,06000 durinl the piesimp liscitl . year—this being the &thinning half of the loan n(1120,000,000 Doet vegotiated. • ky This rapid increase of the public debt, sad the nedsawity whips edit for smodificatitin Of the tariff,. to 'Mint Mao the Onfiniry. ei peijses os t e Oseernrient, iambi to atfmcmilib us all, us., our respective sphereeif duty, to pri%c* . aatabitay. The °Neat& of ex prsdithre shodd Mawr, so far As tidal may be ItmOtioeble, i hi cite tiZo. . . priitious isecaresary wry temp 40; ought to be diabameti iitio s ten se. rountabilitf. Enliihrenrui economy dope not consist in refUsing.to appropriate money for 'constitutional purposes,essential to the defence, progress, and prosperity of the republic, but lb' taking care that none of this money, shall be wasted by tnismaoagemeni, in its applies .llon'te'tifit affects designated by law., Conlpnrisdne between the annual exptitdi-. tures at, the, Fitment time, and what it was • ten or twenty years ago, are altogether fallacious. The rapid itcrease of our country in extent and populationy renders a corresponding in crease of expenditure,sto some extent, una voidable. This' is constantly creating dew objects of expenditure, and augmenting the amount required for the old. The true ques tions then, are, have these objecti been- un-' necessarily multiplied I or, has the amount expended upon any or all of them, been lar ger than comport; with due economy! In secordanee with theie 'pritoipl'es, the beads of the different executive departments of the government, have been instrunted to reduce their estimates for the dist flital year, to the lowest standard consistent with the efineieney of 'the service, and this duty they bast per- . farmed in it iipiiit of lost economy. The es . tittiate of the Trehtiry, War, Navy, mid Into-, riot Departments, have each been in tome de gree reclueerd', and unless a sudden , and un forseen emergency should arise, it is not anticiptted that. a deficiency will ixist in titter within the present or next &seal year. The Post Otife Depertivent is placed in a peculiar posittar,'d?ffetent from the. other de pariderits, and t 6 this I shall hereafter refer: I invite Cohgress to instiateu rigid +tern• tiny to ascertain wltether the expenses in all the depirtnients cannot' be further 'reduCed; and I promise them all The aid 13 ?ay power in pursuing . the inVes: tigatlon. 'I triinsollt heVitwith the repoils mate td me by tite Seeretsties d i r War, of the Navy, of the Itterior, and of tie Postinaster Marral. I'h"ey each contain valuable . ieferithation and important reconitteadations, to *blob I in vite the attention df Congress. In rly last armee) Message, i toot; tit-cation to recommend the, construction of ten small etearnirs, of light draught for tee purpose of ihcresisTili the efeciency Of the navy. Con gress responded to the recommendation, by, authorizing the construction of eight-of them. The progress which has been made in execut ing this abthe'rity, is etated ib the report of the Secretary of the AravY. i 'conctur with him-in the - Optaioti, thi.i grate:. 'Munini'r of this class of vessels is necessary, for the pur pose of protecting it a more efficient inanner the person - it and property of Atnericali citi leas oil. the high seas, and in forrngli coed tries,'as _well as,in guarding rive effectually our own coasts. I accordingly teconniaend the passage of an Act or this ptlrposs. The suaestlinis Goalsiiied to the report of the Secretary of the tfiteritir, especially those in retard to tee disjiosititin a the. vblic A:finial% the iteasion'ilid beinety.land system, the policy, towards the Indians, sad' the amendment of oar patent laws, are Worthy of the serious consideration of Congress. The Post office lieporithent °dupla a position very different frOiti that -a the other departments. 'or snaky ye4n ices the policy of the 4overninent to lender this a aelf. sustaining departs:Lent; altd it this_ drihhot now lie aecoriaplishedi in the prestnt 'audi tion of the country l ere ought to tin e . as deAr ab i atiprthieli tort si tiniy,he preZticable. The Postmastei General Is pla'Zed in a most embarrassing _position by the ekissing.laws. Ile is obliged to carry tlie.4 into tired. 11e has no other allernative. I3e finds, however, that this cannot be done without heavy de mands upon the treasury over and aVove .1.•-• ;at ....am; Carr ; nave been progressittly increasing from year lo year until they ::mounted for the last !fiscal year ending on the 30th June, lt1 : 8, tc: than fourhiilliou and a half Of dollars ; whilst it is estimited tlietior, the pie.ent - 4-ical year they will amount to six million two hundred thealsatei donate. These sums are. exclusive oThe annual appropriation et seven hrindred it:teemed &oilers for zieoroAnsiticin for the niaii serviCcipe.iforined fin the two. houses of Congress and the tither departtrients and iithcerit of the govqihnient it the transporta doll. of free shatter. is „. The aunt' tliMb large de fi c i ts mainly attributalile roadie iwreased expense of trans. potting the mails. , th,e sum Pniil for this serbibe ti•is hut a fratition'almet Nur millions aiid a 4uarteri that year it has annually : increased qntil in 1,546 it reach ed moriT jhan eight millions and aluartei,• and for the service. of 149, it is estimated that it will amount to more tired tedihillions of dollars. ” The receipts of the Post Office &penitent tau be made to approach or equal . iteexpenditure, otly by the meads of . the leitslation ' of Coh grog: In appling st y remedy, care staid be taken that the people shall not be deprived of the advantages, which they are fairly en titled to enjoy from the Post Wee Depart met. The principal remedies recommended to thiiiKenstuerywr.,.. A b e master General and to restcirli theform - Wilt' ri of postage upon single letters to five cents; to substitute for the franking ,privilege the delitery to those now entitled to enjoy it , . of post °Oleo-Stamps for their correspond ence, and to direct the department, in making con tracts for the transportation of the mail, to confine itself to the payment_ of the sum -ne cessary fur this perpose, without requiring it to be transported in pest coatshea of oitrrisges of any particular description. Under the prowl, t system, the gxpetise of the government is, greatly increased, by rewiring that the mail shall be cetried in such vehicles as will acconimodate passengers. Tliis will be ;lode without pay from - the departmteut, over roads where the travel will ierieufferate--the contractors. These recomittendations deserve the grave consideration of Congress. 1 would agiyiit,eall,your atterititti to the construction of* Pacific railroad. Time and reflection have but mitred. to confirm me in' the truth and justice of. the Observations which I-made, on this subject, in my 'lasi an scat• messageisto whitsli I beg leava respect , fully to refer.': . „ It is freely admitted? tbdt it Would be iri etpediettt for this -goveruniont. to exercise the pciWet of z postructing the Pacific& railroad by its own irtidediste agents. Snob a pulley would increase the patrotiage of the electttive to a dangerous extent r ani introduce a eye. tem of jobbing and corruption,whioh no vie lanes on the part of. federal- officials, Wind either ptevent or detect. This. can only be done by the keen eye; and derive . and Fateful Supervision, of individual and private treterest. Tha construction of this road• ought, there fore, to he committed to companies hie-carper ated by. the &Atari., or othersgendes *hose, pkeuniaty-intereste.would bedirectly involved. erkgreu inight tbilingsist themln the work by grants of or of Wicreey, or of. botb. dersuerh conditions acrd restrictions -as Mudd seorne.thei transponation of. Veep' and mu-, nitions of war free of any chrbge,-atilhat of the United Sten* *ail at a fair and towns bby pt sae. . The purees of events since thbootiftence meat of .your. lait revision, ha*. iliown hew Amon. d ifficuhies \disappear before a - ertti and determined resolution:, At that time, autth-a road wad deemed' by Wise and patriotic inert. to be a visionary project; Thagreat rlisttsn to be 100,0011114 and the interienior tains Ind deserts in the way, woe *hied' which, in the opinion of mart, 010 Off be riermerenterl. 'co!, after tha !KS** Al but single year, these obstacles, it has been dri covered, are far - 'less formidable than they were supposed,to be; and snail stages, with passengers, now prim and repass-regularly, - twice in each weeki,by a .Common wegon road lictween Sim ;•Fr4neiseo And St. Louis and Metipbis, in less than :twenty five days. The service has been as regularly performed, as . h was, in- formeryeare, betieeti New York - end thikeity. - Whilst disclaiming all-authority to appro. priate money for the construction of this toad; except that derived from the war-making power of the constitution, there are import ant collateral considerations urging us to un take the work as speedily as possible, The first and moat rnomemoutor: these is, that such a road would be a pitwerful bind of union between the States east aril wert the Rocky uttkftains.- ThiatiaOsellerident as to require no illustration, • • But again, in va commercial point-of I consider this the great,question of the day. With the eastern front of our republic itretch log along the Atlantis; and its western front - along the Pacific, if/all the parts should. be united by a safe, easy, and rapid corumnai cation, we must nece.ssatily command a very large proportion of the trade both of Europe and Asia. Our recent treaties with China and Japan will:err-a these rich and populous • empires-to our commerce; and the Mom of the world proves, that the nation .which his gained possession of the trade with Risaters . Asia, bas - always become wealthy and„power- - ful. The peculiar gecigraphioal 'position Of - California and our Pacific pottessions, invites Am/liken capital and enterprise into Wit fruitful field. To reach the'rich harvesti-how- . ever, It ie an indispensable prerequisite, that we shall first have a railroad, to convey and circulate its product through every portion of the Union. ,Besides such a railroad through our.ternporate latitude, which would not be impeded by the frosts and snows of winter, - nor by the tropical heats of summer, ouhi attract to itself much of the tiara, and. rade bf all„'eaticess paasihr, between Euicipe and :psi a. On the 21st of August , last, Lieut. J. Man., of tht-Uuifed - .Suva brig' Dolphin, captured the slaver Echo," (formerly the Putnam of New Oileang,) near' Key Verde, on the coast dpul* with more than three hundied nugroes on board. -.The prize ender the.edinteand of Lieut. Bradfo • of the United Rimes nary, arrived at Char es ton _on the.27th August; when the Degrees, , three hundred and six in eumber, were de livered into the custody Of the United States marstell for the district of Routh Carolina. They were first placed in Castle Pinckney, an .t afterwards in !sort Setnpter, for safe keeping., and were detained there until the • 19th of September, when the survivor, two hundred and - sek-eat:y.3ine in netnber, acre delivered On Nall the United States steihnir Niagara, to be tittole)rted to the• con - at of Africa, under the • charge of the agent of the United States, put.uatt , ib the provisions of the avA - of the 3d March, !.1319, "in addition to the acts prohibitie4 the slave trade." Un der the- 2d section of this act; the President is "authmiftd to ;lake . shch regulatiodi and arranglatnentt its-.he ,tray deem expedient, for the safe-teetitlit, iuppeft, and removal be yond the lifuits of the United States:of all such neirohi; mullittees, Or persons of color" captured by vessels of the United States, al may be delivered to the marshal of the dis triotihto which they are brought; " and to appoint a proper netion or persons rßsiding upon the coast of Afriba, as 3geiltor agents fdr receiving that negroes, mulattoe or per- Juti.csca3 rect.! ..nt .crorciS seized the prosecutiod of tile shire trade by cointnandtirs of the ttlited States armed , vesieb.." ft.-dui:lA intnnediatelv arose is to the true construction of this jtllt: !t is titiire blear front its tertos that the President was authorised to. proridb "for the iilfe-kliepirig, support; and removal," of lb - 03e nences ep till the *hurl of their delivery to the agent on the coast Of, Kfrimi; Bet no et rein provision was Mach \ fur their protectio -and inpixort after they bad reached the . lace of their destination: . Still, ati agent was to Ile appordted to rerreivti theth on the coast of Africa; and it could not have teen seVposed i that Corigress In tended be should desert' them at the momerft they were received and turn then, loose cull that inhotspitable coast - to perish for- watit of food, or to become again the victims cf the( tave trade. 'Bari this been the intention elf Congress, tire employment of sit agent to rei tjeive there; teho - is terlaired to' reside on- thS edam; *all tibnicessary i and they intiglre have hese herded by our vessels anywhere in Af riCrt. alit! left exposed to the Sufferings and the fate ,which would certainly await them. Mrr Monroe, in his special me-sage of 17 11 December, 1818, at the ftrst.sessiun after the act. wilt passed, ennouncing to Congress whit, in his opinion; win its true construction. lie believed it to b hid duty und t erit,sto Calor" thane -ettforttinath,i into AGica,:and make pro vision for t - twet--fhat&untlh - they should be able to provide. RA . tbernselves. In coni rnunicating this iqtkrpretation of the l ia, of Congrese,hh listed tliiit ittifie doubt bad been ettertained is to Its true intent and meaning, and he submittell th . a bluesticnt to them, so that they knight, "ri?Strid it be deemed ad visabls, amend tlre Nettie-Wore further ,pro ceedings are had under it." Nothing was done by Congress to explain the act, att&Mr. Monroe ptuceeded to Catty li. into executiolt according to its own interpretation, This, then, became the practical coustrbotion. When the Africans from on board the Ectii were delivered to-the marshal cf CherlestoL), it'becarkie trig duty , to, Consider what dispest, tion ought to be dada of. then under tbli law. ForCidily reetscits i ,it was expedient tti reritove them from that locality as speedily as possible: Although the conduct of authoOtics and citizens of.Charloston, its:git ing countenance to the exeCution-of thet law, was jest *lot might have been expected front their high character , vet a: prolonged coti. : tinuencetof - threelh ' indred.• itfriniuilit. die ittonexliete iiiinity of 'that), city, -cbuld .nrit hate failed, to be&yine a eonyce of intelOeni oboe and sniiety to its-inlishiterits. Where to;scind them. Was the question. There' was no portion of the, coast of Africa, 'to ' , veldt& they cottld be.- removed with any tegard to humanity, .except to Liberia. Under these •ctretemstances, au egrenmitit was entered into 'with the Colooizationlocieiy. oh the 7th. of September lasi, a. copy of, which is herewith' transmitted, tinder which therSodietresitig txl.for the cbnsideratioir of forty-five thiamine dollars; to-receive these Africans it( Liberia -from tbeLagent of : the United Stet* end furnish; thein Miring the period of caleilierii tbersafte, with Comfortible shriltir;:edittliing, provisioni, iatid• teed hal, attendance, . cawing the_children to receive - :isclioolicg l c . and all, ' whether children.or adults; to be .bietypetec in the • rts of civilised- Bs, - suitable to their c ondi t a in ,„ .!This eggrepteyoVfortrtive - thousand'dollars. wits' blare" ifpite iti allow anise bf sae kindred and Mr &D i& for-each - indllidualnuid as there bac tier considerable mortalityationg thent;SfruUntey be more be• fore they rtutolt :Afritiitoliestreiety hie agreed, in an equitatOespiti4 Ao unite snub a deduct- 1 tion.from therunount, is tinder the eirenm- ' stances they appear just and reasonable. This range l be fixed until we shalt ascertain the Iktutil nuffarer which teay becorde in charge of the Mai y. • ' . . . li *0 AvyAistifirtti oirw. tbit- muieJ.