"the most decided measures that Oelong to
the powers and obligations of the represen
tative office." Notwithstanding this warn
ing, the banishment was eiilorced, and Mr.
Forsyth promptly announced to the govern
ment the suspension ol the political relations
ol his legation with them, until the pleasure
of his own government should be ascertain
ed.
did not regard thecontri
bntion imposed by tlio decree of the 15 li
May last to be in strictness a ' forced loan,"
and as such prohibited by the 10th article
of the treaty of IB2H between Groat Britian
and Mexico, to the benelits of which
American citizens are entitled bv treaty:
yet the imposition of the contribution upon
foreigners was considered an unjust and
oppressive measure. Besides, interne! fac
tions in other parts of the republic were at
the same time levying similar exactions
upon the properly ol our citizens, and inter
rupting their commerce. There had been
an entire failure on the part of our minister,
to secure redress for the wrongs which, our
citizens had endured, notwithstanding his
persevering efforts. And from the temper
manifested by the Mexican government, lie
had repeatedly assured us that no favorable
change could be expected, until the United
Stales should 'give striking evidence of their
will and power to protect their citizens,"
and that "severe chastening is the only
earthly remedy for our grievances." From
this statement of facts, it would have been
worse than idle, to direct Mr. Forsyth to
retrace liis steps and resume diplomatic
relations with that government; and it was,
therefore, deemed proper to sanction his
withdrawal of the legation from the city ol
Mexico.
Abundant cause now undoublly exists,
for a resort to hostilities against the govern
ment still holding possession ol the capital.
Should they succeed in subduing the con
stitutional forces, all reasonable hope will
then have expired of a peaceful settlement
of our difficulties.
On the other hand, should the constitu
tional parly prevail, and their authority be
established over the republic, there is reasot.
, to hope that they will be animated by a less
unfriendly spirit, and may grant that redress
to American citizens which justice requires,
so far as they may possess the means. But
for this expectation, i should at once have
recommended to Congress to grant the
necessary power to the President, to take
possession of a sufficient portion of the re
mole and unsettled territory of Mexico, to
be held in pledge until our injuries shall bo
redressed and our just demands be satisfied.
We have already exhausted every milder
means of obtaining justice. In sucli a case,
this remedy of reprisals is recognised by the
law of nations, not only as just in itself, but
as a means of preventing actual war.
But there is another view of our relations
with Mexico, arising from the unhappy con
dition of affairs along our southwestern
frontier, which demands immediate action.
In that remote region, where there are but
lew white inhabitants, large bands of hostile
and predatory Indians roam promiscuously
over the Mexican Sates of Chihuahua and
Sonora, and our adjoining territories. The
local governments of these States are per
fectly helpless, and arc kept in a state of
constant alarm by the Indians. They have
not the power, if they possessed the will,
even to restrain lawless Mexicans from
passing the border and committing depreda
tions on our remote settlers. A state of
anarchy and violence prevails throughout
that distant frontier. The laws arc a dead
letter, and life and property are wholly in
secure. For this reason the settlement of
Arizona is arrested whilst it is of great im
portance that a chain of inhabitants should
extent all along its southern border, sufficient
for their own protection and that of the U.
Slates mail passing to and from California.
Well founded apprehensions are now enter
tained, that the Indians, and wandering
Mexicans equally lawless, may break up
the important stage and postal communica
tion recently established between our Atlan
tic and I'r.cific possessions. This passes
very near to tlie Mexican boundary,
throughout the whole length of Arizona, i
can imagino 110 possible remedy lor these
evils, and no mode of restoring law and or
der on that remote and unsettled frontier,
hut for the government of the United Slates
to assume a temporary protectorate over the
northern portions of Chihuahua and Sonora,
and to establish military posts within the
satno—and this I earnestly recommend :o
Congress. This protection may 'be with
drawn, as soon as local governments shall
be established in these Mexican States,
capable of performing their duties to the
United States, restraining the lawless am
preserving peace along the border.
I do not doubt that this measure will bo
viewed in a friendly spirit by the govern-
J meats and people oft.hihuahuaand Sonora,
u as it will prove equally effectual for the pro
tection of their citizens on that remote and
lawless frontier, as for citizens of the United
States.
And in this connexion, permit me to re
call your attention to the condition of Ari
zona. The population of that Territory,
numbering, as is alleged, more than ten
thousand souls, are practically without a
government, without laws, and without any
regular administration of justice Murder
and other crimes are committed with im
punity. This state of tilings calls loudly
iorredress; and I. therefore, repeat my re
commendation for the establishment oi a
territorial government over Arizona.
The political condition ol the narrow
Isthmus of Central America through which
transit routes pass, between the Atlantic and
Pacific oceaii9, presents a subject of deep
interest to all commercial nations. It is
over these transits, that a large proportion
of the trade and travel between the Euro
pean and Asiatic continents, is destined to
pass. To the United States these routes
are of incalculable importance, as a means
of communication between their Atlantic
and Pacific possessions. The latter now
extend throughout seventeen degrees of
latitude on the Pacific coast, embracing the
important State of California and the nour
ishing Territories of Oregon and Washing
ton. All commercial nations, therefore,
have a deep and direct interest, that those
communications shall be rendered secure
from interruption. If an arm of the sea,
connecting the two oceans, penetrated
through Nicaragua and Costa Rica, it could
not be pretended that these Slates would
have the right to arrest or retard its naviga
tion, to the injury of other nations. The
transit by land over this narrow Isthmus,
occupies nearly the same position. It is a
highway in which they themselves have
little interest, when compared with the vast
interests of the rest of the world. Whilst
their rights of sovereignly ought to be re
spected, it is the duly ol other nations to
require, that this important passage shall not
be interrupted, by lite civil wars and revo
lutionary outbreaks, which havo so frequent
ly occurred in that region. The stuke is too
important, to be left at the mercy of rival
companies, claiming to hold conflicting con
tracts willt Nicaragua. The commerce of
other nations is not to stand still and await
the adjustment of such petty controversies.
The government of the United States expect
no more than this, and they will not be sat
isfied with less. They would not, if they
could, derive any advantage from the Nica
ragua transit, not common to the rest of the
wrold. its neutrality and protection, for the
common use of ull nations, is their only
object. They have no objections that Nica
ragua shall demand and receive a fair com
pensation, from the companies and individ
uals who may traverse the ronte ; but they
insist that it shall never hereafter be closed,
by an arbitrary decree of that government.
I 11 disputes arise between it and those with
whom they may have entered into contracts,
| these must be adjusted by some fair tribu
nal provided for the purpose, and the route
must not be closed pending the controver
sy. This is our whole policy, and it can
not lail to be acceptable to oilier naiions.
All these difficulties might be avoided, if,
consistently with the good faith of Nicara
gua, the use of this transit could be thrown
open to general competition ; providing at
lite same time for the payment of a reasona
ble rate to the Nicarognan government, on
passenners and freight.
in August, 1852, the Aneessory Transit
Company made its first interoceanic trip
over the Nicaraguan route, and continued
in successful operation, with great advan
tage to the public, until the 18th February,
1856, when it was closed, and lite grant to
this company, as well as its charter, was
summarily and arbitrarily revoked by the
government of President Ilivas. Previous
to litis date, however, in 1854, serious dis
putes concerning the settlement of their
accounts had arisen between the company
and the Government, threatening the inter
ruption of the roulo at any moment. These
the U. S. in vain endeavored to compose.
It would be useless to rarrule the various
proceedings which took place between the
parties, up till the time when the transit
was discontinued. Suffice it to say, that,
since February, 1856, it has remained clos
ed, greatly to the prejudice of citizens of
the 'lulled States. Since that time (lie com
petition lias ceased betweon the rival routes
ol Panama and Nicaragua, and, in conse
quence thereof, an unjust ami unreasonable
amount has beon exacted from our citizens
for their passage to arid from California.
A treaty was signed on the 16th day of
November, 1857, by the Secrelary of State
and Minister of Nicaragua, under the stipu
lations of which the use and protection of
the transit route would have been secured,
not only to the Uniiou States, bui equally to
all other nation?, How and on what pre
text this treaty has failed to receive the rat
ification of the Nicaraguan Government
will appear by the papers herewith commu
nicated from the Slate Department, 'lite
principal objection seems to have been to
lite provision authorizing the United States
to employ force to keep the route open, in
case Nicaragua should fail to perform her
duty in this respect.
From the feebleness of that republic, its
frequent changes of government, and its
constant internal dissensions, this bad be
come a most important stipulation, and one
essentially necessary not only for the secur
ity of the roulo, but for lite safety of Ameri
can citizens passing and repassing to anil
from our Pacific possessions." Were such a
stipulation embraced in a treaty between
the United States and Nicaragua, the knowl
edge of this fact would of itself most proba
bly prevent hostile parties from committing
aggressions on the route, and reialer our
actual interference for its protection unnec
essary.
The Executive Government of this coun- |
try, in its intercourse with foreign nations, j
is limited in the employment of diplomacy
alone. It cannot legitimately resori to force |
without the direct authority of Congress, !
except in resisting and repelling hostile at- |
tacks. It would have 110 authority to enter j
the territories ol Nicaragua, even to prevent j
the deslruction of the transit, and protect 1
the lives and property ol our own citizens
on their passage It is true that, 011 a sud
den emergency of this character, the Presi
nent would direct any armed lorce in the
vicinity to march to their relief; hut in doing
this he would act upon his own responsi
bility.
Under these circumstances, I earnestly
recommend to Congress the passage of an j
act authorizing the President, under such
restrictions as they may deem proper, to '<
employ the land and naval forces of the U. j
S. in preventing the transit from being ob- ]
strucled or closed by lawless violence, and
in protecting the lives and properly of Amer- !
ican citizens travelling thereupon, requiring
at the same time that these forces shall be
withdrawn the moment llio danger shall
have passed away. Without such a provis
ion, our citizens will be constantly exposed
to interruption in their progress, and to law. 1
less violence. A similar necessity exists for
the passage of such an act for the protection j
of the Panama and Teliuantepec routes.
In reference to the Panama route, the U.
S. by their existing treaty with New Gratia- j
da, expressly guarantee the neutrality of the
Isthmus, "with the view that the free tran
sit from one to lite other sea ntay not he
interrupted or embarrassed in any future
time while this treaty exists.
lit regard to the Teliuantepec route, which
has been recently opened under the most
favorable auspices, our treaty with Mexico
of llio 30th December, 1853, secures to the
citizens of the United States a riglu of transit
over it for their persons and merchandise,
and stipulates that neither Government
shall ' interpose any obstacle'' thereto. It
also concedes to the United Stales die "right
to transport across the Isthmus, in closed :
bags, the mails of the Uuiled States not in
tended for distribution along the line of the
communication; also, the elfect ol'llie U. S.
Government and its citizens which may be
intended for transit and not for distribution
on tiio Isthmus, free of custom house or
other charges by the Mexican government."
These treaty stipulations with New Gra
nada and Mexico, in addition to the consid
erations applicable to the Nicaragua route,
seem to require legislation lor the purpose
of carrying them into elfect.
'the injuries which have been inflicted
upon our citizens in Costa Iltcaand Nicara
gua, during the la-t two or three years, have
received the prompt attention of this Gov
eminent. Some ol these injuries were of
the most aggravated character. The trans
action at Virgin lluy in April, 1850, 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 Cos'.a Rica, and numbers of them
killed and wounded, was brought to the
knowledge of Congress liy my predecessor
soon after its occurrence, and was also pre
sented to the government of Costa llica, for
that immediate investigation and redress
1 which the nature of the case demanded.
A similar course was pursued with refer
ence to other outages in those countries,
some of which were hardly less aggravated
in their character than the transaction at
Virgin Bay. At this time, however, when
our present Minister to Nicaragua was ap
pointed, in December, 1857, no redress had
been obtained for any of these wrongs, and
no reply even had been received to the de
mands which had been made by this gov
ernment upon that of Costa ilica, more
than a year before. Our minister was in
structed, therefore, to lose no lime in ex
pressing to those governments the deep
regret with which the President had witnes
sed this inattention to the just claims of the
U.S., and in demanding their prompt and
satisfactory adjustment. Unless this demand
shall bo complied with at an eurly day, it
will only remain for this government to
adopt such other measures as may be neces
sary, in order to obtain for itself that justice
which it has in vain attempted to secure by
peaceful means from the governments of
Nicaragua and Co-ta Ilica. While it has
shown, and will continuo to show, the
most sincere regard lor the rights and honor
of these Kopublics, it cannot permit this
regard to be met by an utter neglect on their
part, ol what is due to the government and
cilizons of the United Stales.
Against New Grenada we have long stan
ding causes of complaint, arising out of the
unsatisfied claims of our citizens upon that
Republic; and In (best) liavo been more re
cently added the outrages commuted upon
onr citizens at Panama, in April, 1856. A
treaty for the adjustment of these difficulties
was concluded by the Secretary of Stale
and the Minister ot New Granada, in Sept.,
1857, 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 amendments. It was not, however,
returned to this city until after the close of
the Inst session of the Senate. It will be
immediately transmitted to that body for
their advice and consent; and should this be
obtained it will remove all onr existing
causes of complaint against New Granada
on the subject of claims.
Questions have arisen between the two
governments as to the right of N. Granada
io levy a tonnage duty upon the vessels of
the United States in its ports of the Isth
mus, and to |evy a passenger tax upon our
citizens arriving in that country, whether
with a design to remain their or to passfrom
ocean to ocean by the transit route; and
also a tax upon the mail of the U States
transported over the Panama Bail Road.—
The Government of New Granada has been
informed that the U. S. would consider the
collection of cither of these taxes as an act
in violation ol the treaty between the two
countries, and as such would be resisted by
the United States. At the same lime, we
are prepared to discuss these questions in
a spirit of amity and justice, and with 11
since desire to adjust them in a satisfactory
manner. A negotiation for that purpose
has already been commenced. No effort
lias recently been made to collect these
taxes, nor is any anticipated under present
circumstances.
With the empire of Brazil our relations
are of the most friendly character. The
productions ol the two countries and espe
cially those of an agricultural nature, are
such as to invite extensive mutural ex
change*. A large quantity of American
flour is consumed in Brazil; whilst more
than trcbhle the amount in value of Brazil
ian colfee is consumed in the U. S. Whilst
tliis is the case a heavy duty has been
levied, until very recently, upon the impor
tation ol American flour into Brazil. lam
gratified, however, to he able to inlorm you
that in Sept., 1858, this has been reduced to
from SI 32 to about -19 cents per barrel, and
the duties on other articles of our produc
tion have been diminished in nearly the
same proportion.
1 regret to state that the government ol
Brazil still continues to levy an export duty
of 11 per cent on cofi'ee, notwithstanding
this article is admitted tree from duty in the
U. S. This is a heavy charge upon the
consumers ol coffee in our country, as we
purchase halt the entire surplus crop of that
article raised in Brazil. Our Minister, under
instructions, will reiterate his eflerts to have
this export duty removed; and it is hoped
the enlightened Government Empe
ror will adopt this wise, just andequal pol
icy. In that event there is good reason to
believe that lite commerce between the two
countries will greatly increase much to the
advantage of both.
The claims of our citizens against the
Government of Brazil are not, in the aggre
gate, of very large amount; but some of
these rest upon plain principles of justice,
and their settlement ought not to be longer
delayed. A renewed, and earnest, and, I
trust, a successful effort will be made by
our Minister to procure their final adjust
ment.
011 the second of Juno last, Congress pas
ed a joint resolution authorizing the Presi
dent "to adopt such measures and use such
force as, in his judgment, may he necessary
and advisable," "for the purpose of adjust
ing the difference between the U. States
and the Republic of Paraguay, in connec
tion with the attack 011 the United Slates
steamer Water Witch, and with other meas
ures referred to" in his annual message.—
And on 1 lie 12th July following, thoy made
an appropriation to defray the expense and
compensation ol a commissioner to that
Republic, should the President deem it
proper to inake such an appointment.
Incompliance with these enactments, I
have appointed a commissioner, who has
proceeded to Paraguay with full powers
and instructions 10 settle these differences
111 an amicable and peaceful manner, if this
be practicable llis experience and discre
tion justify the hope that lie may prove sue
cesslul in convincing the Paraguayan Gov
ernment that it is due, both and
justice, that they and
promptly make
which they have U-
Slates, and indemnify citizens
whom they have forcibly wprived of their
property.
Should onr commissioner provo unsuccess
ful, after a sincere and earnest eifort, to ac
complish the object of his mission, tlion 110
alternative will remain but the employment
of force to obtain ' just satisfaction" trom
Paraguay. In view of this contingency the
Secretary of the Navy, under my direction,
has fitted out and despatched a naval force
to rendezvous near Beunos Ayres, which it
is believed will prove sufficient for the oc
casion. it is my earnest desire, however,
that it may not be found necessary to resort
to this last alternative.
When Congress met in December Inst,
the business of the country had just been
crushed, by one of those periodical revul
sions which aro tho inevitable consequence
of our unsound and extravagant system of
bank credits nnd inflated currency. With
all the elepients of national wealth in abun
dance, our manufactures were suspended,
our usual public and private enterprises
were arrested, and thousands of laborers
were deprived of employment, and reduced
to want. Universal distress prevailed a
ntoiig the commercial, manufacturing, and
mechanical classes.
This revulsion was felt the more severely
in the United Slates, because similar causes
had produced the like deplorable effect
throughout tho commercial nations oi Eu
rope. All were experiencing sad reverses
at lite same moment. Our manufactures
everywhere suffered severely, not because
of lite recent reduction in the tariff of duiies
011 imports, but because there was no de
mand at any price for their productions.—
Tito people wore obliged to restrict them
selves, in their purchases, to articles of
1 prime necessity. In the general prostra
tion of business, the iron manufacturers iri
different States, probably suffered moto 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 could be no supply where there was
no demand. To present an example; there
could bo 110 demand for railroad iron, after
our magnificent system of railroads, ox
tending its benefits to every portion of tho
Union, hud been brought to a dead pause.
The same consequences have rcsultod from
similar causes to many other branches ol
useful manufactures. It is self evident that
whore there is no ability to purchase manu
factured articles, these cannot be sold and
consequently must cease to be produced.
No government, and especially a govern
ment of such limited powers as that of the
United Suites, could have prevented the late
revulsion. The whole commercial world
scorned for years to have been rushing to
this catastrophe, Tho same ruinous conse
quenees would have followed in the United
States, whether the duties upon foreign im
ports had remained as the were under the
tariff of 1846, or had been raised to a much
higher standard. Tho tariff of 1857 had no
agency in the result. Tho general causes
existing throughout tho world could not
have been conlroled by llio legislation of
any particular country.
'I lie periodical revulsions which have!
existed in our past history must continue to '
return at intervals, so long as our present
unbounded system of bank credits shall pre
vail. They will, however, probably be the
less severe in future, because it is not to be
expected, at least for many years to come,
that the commercial of Europe with
whore iulcty'stGVir own are so. materially
involved,, will expose themselves to sipiilnr
calamities But this subject was treated so
much at large in my last message, that I
shall not now pursue it further. Still.* I re
spectfully renew the recommendation in
lavor of the passage of a uniform bankrupt
law, apptlmrblo to banking institutions. This
,is all the power over the subject which 1
believe, the Federnl government possesses.
Such .a law would mitigate, though it might
not prevent the evil. The instinct of self
preservation might produce a wholesome
restraint upon their banking business if
they know in advance that a suspension ol
specie payments would inevitably produce
their civil death.
But the efi'octs of llio revulsion arc now
slowly but surely passing away. The en
crgy and enterprise of our citizens, willi
our unbounded resources, will, within the
period of another year, restore a state of
wholesome industry and trade. Capital has
again accumulated in our large cities; the
rate of interest is there very low; confi
dence is gradually reviving, and so soon as
it is di-covered that this capital can bo
profitably employed in commercial and
manufacturing enterprises, and in the con
struction of railroads and other works of
public and privnte improvement, prosperity
will again smile through the laud. It is 111
vain, however, to disguise the fact from
ourselves that a speculative inflation of our
currency, without it corresponding inflation
in other countries whose manufactures come
into competition with our own, must ever
produce disastrous results to our domestic
manufactures. No tariff, short of absolute
prohibition, can prevent these evil conse
quences.
In connection with this subject, it is proper
to refer to our financial condition. Tho same
causes which have produced pecuniary dis
tress throughout the country, have so reduced
the amount of imports from foreign countries
that the revenue lias provod inadequate to
meet tho necessary expenses of tho govern
ment. To supply the deficiency, Congress,
by the act of the 23rd of December, 1857,
authorized the issue of $20,000,1)00, treasury
notes; and litis proving inadequate, they
authorized, by the act of June 14th, 1858,
a loan ot $20,009,000, "to be applied to the
payment of appropriations made by law."
No statesman would advise that we should
go on increasing the national debt to meet
lite ordinary expenses of Government.—
This would be a most ruinous policy. In
case of war, our credit must be our chief
resource, ut least ior the first year, and this
would be greatly impaired by having con
tracted a large debt in time of peace. It is
true policy to increase our revenue so as to
equal our expenditures. It would be ruin
ous to continue to borrow. Besides, it may
be proper to observe, that the incidental
protection, thus afforded by a revenue tariff',
would at the present moment, to some ex
tent, increase the confidence of the manu
facturing interests, and give a fresh impulse
to our reviving business. To this, etirely,
no person will object.
lit regard to the topde of assessing and
collecting duties under a strictly revenue
tariffi, I have longentertained and expressed
the opinion that sound policy requires litis
should be done by specific duties, in cases
to which these can be properly applied.—
They _iye well adapted 10 commodities
which usually sold by weight or measure,
and which, irom their nature, are of equal
or of nearly equal value. Such, for exam
ple, are the articles of iron of difierent clas
ses, raw sugar, and foreign wines and spir
its.
in my deliberale judgement, specific du- j
ties are the best, if not the only means of j
securing lite revenue against false and fraud- I
ulent invoices, and such has been the prac- !
tice adopted for tliis purpose by other j
commercial nations. Besides, specific i
duties would airord to tho American tnanu- i
facluror the indental advantages to which j
lie is fairly entitled under a revenue tariff.
The present system is a sliding scale to his I
disadvantage Under it, when prices are j
high nnd business prosperous, the duties 1
rise in amount when he least requires their ;
aid. On the contrary, when prices fall, and I
he is struggling against adversity, the duties |
aro diminished in the same proportion, I
greatly to his injury.
Neitlejr would there bo danger that a !
higher rale of duty than that intended by |
Congress, could be levied in the form of j
specific duties. It would be easy to ascer- (
tain the average value of any imported j
article for a series of years; and instead of!
subjecting it to an ad valorem duly at a '
certain rate per centum; to substitute in j
its place an equivalent specific duty.
By snob au arrangement the consumer i
would not be injured. It is true, he might j
have to pay a little more duty 011 a given I
article in one year; but if so, he would pay i
a little less in another, and in a series of !
years these would counterbalance each
other, and amount to the same thing, so fur
as his interest is concerned. This incon
venience would be trilling, when contrasted
with the additional security thus afforded
against frauds upon the revenue, in which
every consumer is directly interested.
1 have thrown out these suggestions aR the
fruit oi my own observation, to which Con
gress, in their belter judgment, will give such
weight as they may justly deserve.
The report of the Secretary of the Treas
ury cxpiairtSjjn detail, the operations of that
department of the Government. The re
ceipts into the Treasury, from all sources,
during the fiscal year ending tho 30th of
June, 1858, including the treasury notes
authorized by the act of Decomber 23d,
1857, wore seventy million two hundred
and sevenly-lhreo thousand eight hundred
and sixty-nine dollars and fifty nine cents
($7O 273,869 59.) which amounts with the
balance ol seventeen million seven hundred
and ten thousand one hundred and fourteen
dollarß and twenty seven cents, ($l7 710.114
27) remaining in the Treasury at the com
mencement of the year, made an aggregate
for the service ot the year eighty seven
million nine hundred and eighty throe
thousand nine hundred and eighty three dol
lars and eighty six eonts ($B7 983,983 86.
The public expenditures during the fiscal
year ending June 30, 1858, amounted to
eighty one million five hundred and eighty
five thousand six hundred and sixty seven
dollars and seventy six cents [BBl 589,667,-
76.] of which nine million six hundred and
eighty four thousand five hundred and thirty
seven iloHarsaml ninety nine cents [59,684,-
535, 99 A were applied to the payment of lite
public'ucbt, and the redemption of treasury
notes with the interest thereon, leaving the
Treasury on July 1, 1858, being the com
meneemertt of the present fiscal year, six
million three htindred and ninety eight
thousand three hundred and sixteen dollars
and ten centr, [56,398,318,10.]
The receipts into the Treasury, during the
firs', quarter of the present fiscal year, com
mencing the Ist July, 1858, including one
half of the loan of twenty millions of dol
lars. with the premium upon it, authorized
hy the act of 14th June, 1868, were twenty
five millions two hundred and thirty thou
sand eight hundred and seventy-nine dollurs
and forty-six cents, ($25,230,879.46,) and
the estimated receipts for the remaining three
quarters to the 30 June, 1859, from ordinary
sources, uro thirty-eight million five hundred 1
thousand dollars, ($38,500,C00,) making,
with tho balance before stated, an aggregate
of seventy million one hundred and j
nine thousand one hundred and ninety-five |
dollars and filty-six cents ($70,129,195 56.) 1
The expenditures, during the first quarter 1
oftlie present fiscalyear,weretwenty onemil- 1
lion seven hundred and eighty thousand one 1
hundred and ninety-eight dollars and fiity
one cents, ($21,701,198.51.) of which or.e ]
million ten thousand one hundred and forty- i
two dollars and thirty-seven cents, ($l,OlO,- ]
142.37,) were applied to the payment of the i
public debt, and the redemption ol treasury 1
notes-and tlie interest thereon. The eslirnat- 1
ed expenditures, during the remaining three 1
quarters, to 30th June, 1859, are filty-two
million three hundred and fifty-seven thou- 1
sand six hundred and ninety-eight dollars 1
and forty eight cents, ($52,357,698.48,) mak
ing an aggregate of seventy-four millions
sixty-five thousand eight hundred and ninety
six dollaTs and ninety-nine cents, ($74,065,-
896,99,; being an excess of expenditure
beyond the estimated receipts into the
Treasury from ordinary sources, during the
fiscal year to the 30th June, 1859, of three
million nine hundred and thirty-six thousand ,
seven hundred and one dollars and iorty
throo cents, ($3,936,701,43.) Extraordina
ry means aro placed by law within tho com- 1
maud of the Secretary of the Treasury, by
the re issue of treasury notes redeemod, and
by negotiating the balance' of tho loan au- ,
thorized by the act of 14th June, 1858,tothe
extent ol eleven millions,ol dollars, which if
realized during the present fiscal year, will |
leave a balance in the Treasury, on the first 1
day of July, 1859, of seven million sixty- 1
throe thousand two hundred and ninety- 1
eight dollars and fifty-seven cents, ($7,063,- j
298 57 ) 1
The estimated receipts during the next 1
fiscal year ending 30lh June, 1860, are sixty- 1
two millions of dollars ($62,000,000) which 1
with the above estimated balance of seven
million sixty three thousand two hundred 1
and nincty-eightdollars and fifty-seven cents, 1
($7,063,298,57 ) make an aggregate for the (
next fiscal year of sixty-nine million sixty- 1
three thousand two hundred and ninety- ,
eight dollars and fifty-seven cents, ($69,063, 1
298 57. The estimated expenditures during
the next fiscal year, ending 30th of June, ,
1860, are seventy-three million one hundred I
and thirty-nine thousand one hundred and I <
forty-seven dollars and ioriy-six ! ]
139,147.46,) which leaves a deficit of esti
mated means, compared with the estimated
expenditures lor that year, commencing 011
the first of July, 1859, of four million and
seventy-five thousand eight hundred and
forty-eight dollurs and eighty-nine cents, ■
($4,075,848.89.)
In addition to this sum, the Postmaster
General will require from the Treasury, for I
the service of the Post Oifico department, |
three million eight hundred and thirty-eight j
thousand seven hundred and twenty-eight
dollars, ($3,838,728,) as explained in lite re- j
port of tho Secretary oi the Treasury, which j
will increase the estimated deficit on the 30th 1
June, iB6O, to seven millions nine hundred j
and fourteen thousand five hundred and sev
enty-six dollars and eighty-nine cents, ($7,- [
914,576,89 ) To provide for the payment
of this estimated deficiency, which will be j
increased by such appropriation as may be I
made by.Congress, not estimated for in the
report of the Treasury Department, as well
as to provide for the gradual redemption,
| Irom year to year of llio outstanding treas
; ury notes, the Secretary of the Treasury
recommends such a revision oi the present.
, tariff as will raise the required amount.—
! After what I have already said I need scarce- '
ly add that 1 concur in the opinion expressed ;
in his roport, that llio public debt should not 1
I be increased by an additional loan, and :
I would thereiore strongly urge upon Congress I
j the duty of making at their present session, |
the necessary provision for meeting these !
j liabilities.
j The public debt on the Ist July, 1858, the
' commencement of the present fiscal year, 1
j was $25,155,977.66.
| During the first quarter of the present year, j
I the sum of $lO 1)00,000 has been negotiated !
! of the loan authorized by the act of 14th }
j June ? 1858—making tiie presentoutstanding j
I public debt, exclusive, of treasury notes,
j $35,155,977.66. There was on the Ist of Ju- '
' ly, 1858, of treasury notes issued by author-'
ity of lite act of December 23, 1857, un-re- 1
' deemed, the sum of $19,754,800 —making j
j the amount of actual indebtedness, at that
1 date, $54,910 777.66. To this will bo added ;
] $10,000,000 during lite present fiscal year— :
j this being the remaining half ol' the loan I
j of $20,000,000 not yet negotiated.
I The rapid increase of the public debt, and j
the necessity which exists for a modication j
! of the traiff, to meet even the ordinary ex-!
( penses of the Government, ought to admon- j
j tsh us all, in our respective spheres of duty, j
to the practice of rigid economy. The ob- j
j jects ol expenditure should be limited in
j number, as far as this ntay be practicable, |
j and the appropriations necessary to carry
| them into effect ought to be disbursed under ■
I the strictest accountability. Enlightened j
I economy does, not consist in the refusal to 1
J appropriate money for constitutional purpo- j
I ses, essential to the defence, progress, and
| prosperity of the Republic, but taking care 1
j that none of litis money sliall be wasted by j
mismanagement, in its application to tho j
objects designated by law.
Comparisons between the annual expen- j
( diture at the present time, and what it was j
[ ten or twenty years ago, are altogether falla
cious. Tho rapid increase of our country in '
I extent and population renders a correspon- ,
j ding increase of expenditure,to some extent, 1
j unavoidable. This is constantly creating
j new objects of expenditure, and augment- j
ing the amount required for the old. Tho I
! true questions, then, are, have these objects j
| been uuneeessarially multiplied ? or, has the j
amount expended upon any or all of them
been larger titan comports with due ecofto- |
my? In accordance with these principles, j
the heads of the difierent executive depart
ment of the Government have been instruc- j
ed to reduce their estimates for the next fiscal ]
yearto tbeloweststandardconsistent with the :
efficiency of tho service, and this duty they |
have performed in a spirit of just economy. I
The estimates of the Treasury, War, Na- ;
vy, and Interior Department have each
been in some degree reduced ; and unless ;
a sudden and unforeseen emergency should j
arise, it is not anticipated that a deficiency j
will exist in either within the present or ttie
next fiscal year. Tne Post Office Depart- j
rnent is placed in a peculiar position, differ- j
ent from tho other departments, and to this 1
shall hereafter refer.
I invite Congress to institute a rigid scruti
ny to ascertain whether the expenses in all
the departments cannot bo still reduced; and
I promise litem all the aid in my power in
pursuing the investigation.
I transmit herewith the reports made to
me by tho Secretaries of War, of the Navy,
of the Interior, and of the Postmaster Gen
eral. They each contain valuable informa
tion and important recomcndations, to which
i invite the attention of Congress.
In my lastatinual message I took occasion
to recommend the immediate construction of
ten small steamers, of light draught, for the
purpose of increasing tho efficiency oi the
navy. Congress responded to the recommen
dation by authorizing the construction of
1 eight of them. The progress which hasbeen
made in executing this authority is stated in
the report of the Navy. 1 concur with him
in the opinion that a greater number of this
class of vessels is necessary for tho purpose
1 of protecting in a more efficient manner the
persons and property of American citizens
i on the high seas, and in foreign countries,
as well as in guarding more effectually our
own oosis s. I accordingly recommend the
passage of an act for this purpose.
The suggestions contained in the report of
Secretary of the Jnterior,especially those
Wrregard to the disposition of the public do
main, the pension and bounty land system,
the policy towards the Indians and the
amendment.of our patent laws, are worthy
of the serious consideration of Congress.
The Post Office Department occupies a
position very different from that of the other
department''. JTor many years it was the
policy of Ihe Government to render this self
sustaining department; and 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 in o ef
fect. He has 110 other alternative. He finds,
however, that this cannot bo dona without
heavy demands on the Treasury, over and
above what is received for postage; and
these have been progressively increasing
from year to year until they amounted for the I
last fiscal year, ending on the 10th June, I
1858, to more than four millions and a half
of dollars; whilst it is estimated that, for the
present fiscal year, they will amount to $6,-
290,000. These sums are exclusive of the
aunual appropriation of $70,000 for ' com
pensation for the mail service performed for
the two houses of Congress uud tlio other
departments and officers of tho Government
in the transportation of free matter."
The cause of these large deiicits is main
ly attributable to the increased expouso of
transporting the mails. In 1852 the sum
paid lor this service was but a fraction abovo
four million and a quarter. Since that year
it has actually increased until in 1858 it has
reached moro than eight million and a quar
ter, and for service of 1859 it is estimated
that it will amount to moro than ten million
of dollars.
Hie receipts of the Post Office Department
can be made to approach or to equal its ex
penditure, only by means of tho legislation !
of Congress. In applying any remedy, care j
should be taken that the people shall not be j
deprived of the advantages which they are '•
fairly entitled to enjoy from tho Post Office I
Department. The principal remedies re- '
contended to the consideration of Congress I
by the Postmaster General, we are to restore '
tho former rate of postage upon single let- j
letters to five cents,to substitute tor the frank- |
ittg privilege the delivery to those now en
titled to enjoy it, of post office stamps forj
their correspondence, and to ditect tho de- '
partment, in making contracts fot the trans- j
portation of the mail, to confine itself to the !
■payment of tho snra necessary for this sin- j
! glo purposes, without requiringil to bo trans
ported in post coaches or carriages of any j
peculiar description. Under the present
system, the expense to the Government is j
greatly increased, by requiring that the !
mails shall be carried in such vehicles as ]
will accommodate passengers! This will !
be done without pay from the department, i
over all roads where the travel will remuner- |
ate the contractors. Tliese recommendations ;
i deserve tho grave consideration of Congress |
I would again call your attention to the
i construction of a Pacific railroad. Timeand j
j rellectiou have but served to confirm me in I
the truth and justice of the observations |
which I made on this subject, in my last |
annual message, to which 1 beg leave re
spectfully to refer.
it is freely admitted that it would be inex
pedient for this Government to exercise the |
power of constructing the Pacific railroad j
by its own immediate agents. Such a policy ;
i would increase the patronago of tho execu- i
; live to ti dangerous extent, and induce a j
i system of jobbing and corruption, which no j
; vigilance oil tlio part ol bedoral officials (
. could either prevent or detect. This can |
| only be done by tho keen eye, and the active j
| and careful supervision of individual and j
I private interest
i The construction of this road ought, there-1
; fore, to be committed to companies inoor- j
[ poraled by the States, or other agencies j
whoso pecuniary interests would bo directly
i involved. Congress might then assist thetri !
| in the work by grants ot land or of money, |
i or Doth, under such conditions and restric- j
l lions as would secure tho transportation of j
| troops and munitions of war free from any |
i charge, and that of the United Slates mail at
a fair and reasonable price.
! The progress of events since the com
! mencenten'. of your last session has shown
' how soon difficulties disappearbefore a firm
; and determined resolution. At that time
j such a road was deemed by wise and patri
otic men to be a visionary project. The great
! distance to be overcome, and the intervening I
! mountains and deserts in the way, were ob
stacles which, in the opinion of many, could |
j not be surmounted. Now after the lapse of
; but a single year, these obstacles, it has been i
discovered, are far less formidable than they j
, were supposed to be; arid mail stages, with J
I passengers, now pass and repass regularly,
twice in each week, by a common wagon
road between San Francisco and St. Louis
I and Memphis, in less than twenty-five days.
; The service has been as regularly perform
ed as it was in former years between Now
York and this city.
While disclaiming all authority to appro
priate money lor Ihe construction ol this
■ road except that derived lrom the war mak-
I ing power of tire Constitution, there are im
j portant collateral considerations urging us to
! undertake the work as speedily as possible
j The first and most momentous ol these is,
that snch a road would be a powerful bond
I of union between lire States east and west
|of the Hoeky Mountains. This is so self
evident as to require no illustration,
i Hut again, in a commercial point of view,
| I consider this the great question ot the day.
With llreeasternfrontol our Republicstretch
| ing along the Atlantic, and its western front
along tire Pacific, if all the parts should bo
! united by a sale, easy, and rapid intercom
i munication, we must necessarily command
a very large proportion of trade both of
| Kuropc and Asia.
i Our recent treaties with China and Japan
i will open these rich and populous empires
to our commerce; and the history of the
; world proves that the nation which has gain
ed possession of the trade with Kastern Asia
has always become wealthy and powerful
The peculiar geographical position of Cali
fornia and our Pucifie possession invites
American capital and enterprise into this
fruitful field. To reap the rich harvest,
however, it is an indispensable prerequisite
that we shall first have a railroad to convey
and circulate its products throughout every
portion ol the Union. Besides, such a rail
road through our temperate latitude, which
would not be impeded by the frosts and
snows of winter, nor by the tropical beat of
summer, would attract to itself much of the
travel and the trade of all nations passing
between Europe and Asia.
On the 21st of August last, Lieut. J. N-
Maffit, of the United Mutes brig Dolphin,
captured the slaver "Echo," [formerly the
Putnam, ol New Orleans,] near Key Vsfde,
on the coast of Cuba, w:tu more than three
hundred African negroes on board. The
prize, under the command of Lieut. Brad
ford, of the Unhed States navy, artired at
Charleston on the 22nd ol August, wlitn the
negroes, three hundred and six in.number,
were delivered iuto the custody of the United
Stales marshall for the district of South Car
olina. They were first placed iu Castle
Pickney, and afterwards ir. Fort Suinpter, for
, sale-keeping, and were detained there until
, the 19th September, when the survivors, Mo
, /hundred and seventy one in number, wtero
, delivered on board the United States steam
er Niagara, to be transported to the coho-l of
■ Africa, uuder the charge of the agent of the
:
'-i...... &*■ r
United State". person' I to the provisions of
the act of the 3d Marcti, 1849. "in addition
to the acta prohibiting the slave trade.
Under the second section ol this art, the
President is "authorized to make such regu
lations and arrangements as he may deem
expedient lor Ihe safe keeping, support, and
removal buyonil tlie limits of the United
Slates, of all snch negroes, rniilaloea or
persons ol color" captured by vessels of the
United Slates, as may be delivered to the
marshall of the distritt into-which they are
brought ; "and to appoinf a proper person
or persons residing upon the roast of Africa,
as agent or agents lor receiving die negroes,
mulatnes, or persons ofcnlor, delivered Irotn
on board vessels seized in the prosecution
of the slave trade by commanders of the
United Slates armed vessels.
A doubt immediately arose as to the true
construction as to this act. it is quite clear
from its terms that the President was au
thorized to provide ' for the safe keeping,
and removal" of these negrces up till the
tunc of their delivery to the agent on the
coast of Africa; but no express provision
' was made for their protection and support
after they had reached the place of their
destiiiaiinn. Still, ar, agent was to be ap
pointed to receive them in Africa ; and it
could not have been supposed lhat Congress
intended bo should deseit ihem at the mo
ment they were received and turn them
loose on that inhospitable coast to perish for
want of food, or lo become aniu the vic
tims of the slave trade. Had this been the
intention ol Congress, the employment of an
agent to receive litem who is required to
reside on ihe coast, was unnecessary, and
they might have been landed by out vess.
els anywhere ill Africa and left exposed to
Ihe sufferings and the late which would
certainly await them.
Mr. Monroe, in ins special message of lite
17ih of December, 1819, at the first session
after the act was passed, announced lo Con
gross what in his opinion, was its (rue con
struction. He believed it to be his duty
| under it lo follow these unfortunates into
I Alrica, und make provision for them there
| until they should be able to provide for
: themselves. In communicating this inter
pretation of the act of Congress, lie staled
| that some doubt had been entertained as in
! its true intent and meaning, arid he sub-nit
' led Ihe question tolliem, so that they might,
| "should it bo deemed uilvisable amend (lie
j same belore lutther proceedings are had
I under it."
| Nothing was done by Congress to explain
l the act, and Mr. Monroe proceeded to carry
j it into execution according to his own inter
; pretation. This, then became the prae.tical
construction. When, the Atricans f.orr. on
I board the Echo were delivered to the mar—
| shal at Charlestown it became my duty to
consider what disposition ought to be made
Jof them under the law. For many reasons
j it was expedient to remove ihem lrom that
j locality as speedily as possible. Although
l tho conduct of the authorities and citizens
j of Charleston, in giving countenance lo Ihe
i execution of the law, was just what might
j have been expected lrom their high charac
ter, yet a prolonged continuance of threo
hundred Africans in Ihe immediate vicinity
j of that oily could not have failed to become
j a source of great inconvenience and anxiety
|lo its inhabitants Where to send them was
Ihe question. There was no portion of the
! ooast of Africa to which thpy could be rc-
J moved with any regard to humanity, except
to Liberia.
| Under these circumstances, an agreement
! was entered into with the Colonizaiion
i Society on Hie 7th of September last, a copy
|of which is herewith transmitted, under
! which the society engaged, for the consider
ation of forty five thousand dollars, to receive
! these Africans in Liberia from Ihe agent of
the United Slates, and furnish Ihem, during
i the period of one year tfterealler, with enm
j forlahle shelter, clothing, provisions, ami
; medical attendance, causing the children to
j receive schooling ; and all, whether children
{ or adults, to be instructed in the arts of civ
j tlized life suitable to their condition.
I This aggregate of forty-five thousand
j dollars was ba.-e l upon ar- allowance of one
' hundred and filly dollars for each individual
j and as there Ins been considerable moduli
j among them, and may be more beforo
they reach Africa, the society have agreed,
in an equitable spirit, to make such a de
duction lrom tlio amount as, under (he cir
cumstances may uppear just and reasonable.
This cannot be fixed until we shall a-ceriai.r
the actual number winch may become a
charge to the society.
It was also distinctly agreed lhat under no
! circumstances shall this Government be c.il
{ led upon for any additional expenses,
j The agents of the society manifested a
laudable desire to conform to the wishes of
the Government throughout the transaction.
They assuied me that after a careful calcu
lation lliey would be required lo expend Ihe
sum of one hundred and filly dollars on
each individual in complying with Ihe agree
ment, and they would have nothing left to
remunerate liiem for. their care, trouble and
responsibility. At all even's I could make
no better arrangement, and there was no
other alternative. During the period when
the Government itself, through its own
agents undertook the task of providing lor
the captured negroes iu Alrica, the cost per
head was very much greater.
There having been no outstanding appro
priation applicable lo this purpose, I could
not advance any money on the agreement.
1 therefore recommend thai an appropriation
may be made of the amount necessary lo
carry it into effect.
Other captures of a similar character may,
and probably will he made by our neval
forces; and I earnestly recommend that
Congress may amend the second section of
the act of March 3, 1819, so as lo free its
\ construction from die ambiguity which has
so long existed and render llifcdulyof the
I President plain ill executing iis provisions.
1 recommend In your favorable regard the
looal inlerests of the Districts of Columbia.
As the residence of Congress and tire exe
, entice (lepanrnent of the Government, we
, cannot fail lo feel a deep concern in its wel
fare. This is heightened by the high char-
I -ncter and the peaceful ana orderly conduct
of its resident inhabitants.
1 cannot connlude without performing the
, agreeable duty of expressing my gratifica
, lion lhat Congress so kindly responded to
I the recommendation of my last annual
! message by affording me sufficient lime be
fore the close of their late session (for mo
examination of all the bills preseritedtn me
for approval. This change in the pfpctice
of Congress has proved lo be a
reform. It exerted a beneficial itiffnenee on
ihe transaction of legislative justness and
elicited the genera! approbation of the coun
y. It enabled Congress to adjourn with
that dignity and deliberation so becoming to
the representatives of this 'great Republic,
without having crowded Into general appro
priation bills provisions foreign to their na
ture and of doublftj} constitutionality and
expediency. Let mo warmly and strongly
coinmer.d thia precedent established by
themselves as n guide, lo their proceedings
during the present session.
JAMES BUCHANAN.
WssmlNtiTON CITV, December fi, 1858.
jTlook at this.
gVKT.L those that have s'anding account with
b ** the firm ol Mendenhall & Mench, and
'; with 'to subscriber, are hereby notified that
unless payment is made by the 15th of Jan
uary next cost w ill be added. lam in euru
est tills time, so gentlemen, come toe tho
mark. A. C. MENSCH
' Blonmßburg, Dec. I, 1858.—3 i.