0 PatiDENT'S MESSAGE,' Fellow Citizens of the Senate and Rouse of Representatives: The Constitution of United States provides that Congress shall assemble an dually on the first Monday of' December, and it has been usual for the President to make no communications of a public char acter to the Senate and Home ofllepresen tatives until advised of their readiness to receive it. I have deferred to this usage until the close of the first mouth of the ses sion, but my convictions of duty will not permit me longer to postpone the dischaTge of the obligation enjoined by tliZ Constitu tion upon the President 14 to give to the Congress information of the state of the Union, and recommend to their considera tion such measures as he shall, judge neces sary and expedient." It is matter of congratulation that the Republic is tranquilly advancing in a ca reer of prosperity and peace. FORUM.; RELATIONS—CENTRAL AMERICA. Whilst relations of amity continue to ex ist between the United States in all foreign powers, with some of them grave questions are depending, which may require the con sideration of Congress Of such questions, that which has arise Dons with Great B Central America. By the conventions concluded between the two governments on the 19th of April, 1850, btfth parties covenanted that ' , neither will ever" ' , occupy, or fortify, or colonize, or assume or exercise any dominion over Nicaragua, Costa Rica, the Mosquito coast, or any part of' Central America." It was the undoubted Understanding of the United States, in making this treaty, that all the present States of the former re pnblic of Central America, and the entire territory of each, would heneeforth enjoy Complete independence; and that both contracting parties, engaged equally, and to the same extent, for the present and for the future, that either of them had any claim to right in Central America, such claim, and all occupation or authority under it, were unreservedly relinquished by the stip ulations of the convention; and that no do minion was thereafter to be exercised or assumed in any part of Central Arnerica, by Great Britain or the United States. This Government consented to restric tions in regard to a region of country, wherein we had specific and peculiar inter ests, only 011011 the conviction that the like restrietions were it) the saute sense obliga tory on Great Britain. But for this Under standing of the force and effect of the Con vention, it would never have been conclud ed by us. So clear was this understanding on the part of the United States, that in correspon dence contenqmraneons with the ratification of the convention, it was distinctly express ed, that the mutual covenants of non occu pation were not intended to apply to the British establishment at the Bahze. This qualification is to be ascribed to the -filet . that, in virtue of successive treaties pith previous sovereigns of the country, Great Britain had obtained a concession of the right to cut mahogany or dye-woods at the Balize, but with positive exclusion of all domain or sovereignty; and thus it con firms the natural construction and stood import of the treaty as to all the rest of the region to which the stipulation): ap plied. It, however, became apparent, at an ear ly day after entering upon the discharge of my present functions, that Great Mifflin still continued in the exercise or asset tion of large authority in all that part of Cen tral America commonly called the M..squi to Coast, :Ind covering the entire length ()I' the State of Nicaragua, and a part of Costa Rica ; that she regarded the lialize as her absolute domain, and was gradually exten ding its limits at the expense of the Slate of HOuras; and that she had formally colonized a considerable insular group, known as the Bay Islands, and belonging of right to that State. All these llicts or pretensions of Great Britain, being contrary to the lights of the States of Central America, and to the man fest tenor of her stipulations with the Uni ted States, as understood by this govetn ment, have been made the subject of nego tiation through the .kancrican Minister in London. I transmit herewith the instruc tions to him on the subject, and the corres pondence between him and the British Sec retary on Foreign Atr:iiirs, by which you will perceive that the twt) governments dif fer widely and irrecuticileably as to the construction of the convention, and its ef fect on their respective relations in Central America. Great 13ritain so construes the conven tion, as to maintain all her previous pre tensions unchanged over the 'Mosquito coast and in different parts (.1' Cential A merica. These pretensions, as to the Alos- quit° coast, are founded on the assmoption of' political relations lich% ecii (rest lit it ain and the remnant of a trilm of Indians on that coast, entered into at a time 1%1; i the country was a colonial possession of Spain. It cannot be sueces , fully controverted that by the public law 01 Europe and' America, no possible act of such Indians or their pre decessors could conter2tu Great Britain any political rights. (boat-Britain dims not allege the assent of Spain as the origin ut her claims on the 11losquito coast. She has, on the contraQ • hy 'repeated and exp . ressive treaties renoun ced and relinquished all pretensions of her own, and recognized the Intl and sovereign rights of Spain in the niost, unequivocal terms. Yet these pretensions, so nitlnint solid foundation in the In , gitining, and Oms repeatedly abjured, ly - ere:, at' ti recent period revived by Great Ilritain,against the Cen tral Anicrican St at es, Ito' legit Multi! stieces • stirs to a)t the ancient jurisdiction of Spain in that reglion. They were first applied on ly to a dcfhicd 101 .1 or thif coast of Nicara-, giut. they ?re now veils:K. l ll(A twthis' extent Joil wit hstanding engagetllents to Om I.lnited Siatcs.' ' On the eastern coast of Nicaragua not 11.,ta tint iiitorfer(4we rirt.,it. Vintp.tli idr.roil :it one time in the form of nilii lii' (woupkiion tho Port .luitn 1.11.1 .N ortc, tliQn in the' peaceful hot session of the appropriate authorities of the Central American States, is now presented by her as thelightfid exerei,se of protec-; torship over the' gosquito tribe of Indians-, But the establishment a t,tho Balize, now reaching far beyond its treaty into the State of Honduras, and that' of the Bay, Islands; appertaining of right to the same' state, are as distinctly colonial governments as that of Jamaica or Canada, and therefore contrary to the very letter, as well as to the spirit of the convention with the United States, as it was at the time of ratification, and now is understood by this government. The interpretation which the British gov ernment, thus in assertion and act, persists in ascribing to the convention, entirely changes its character. While it holds us to our obligations, it in a great measure re leases Great Britain from those which con stituted the consideration of this govern ment for entering into the convention. It is impossible, in my judgment, for the Uni ted States to acquiesce in such a construe- don of the respective relations of tho two governments to Central America. To a renewed call by this government up on Great Britain, to abide by, and carry in to effect the stipulations of the convention, according to its obvious import, by with drawing front the possession or coloniza tion of portions of the Central American States of Honduras, Nicaragua and Costa Rica, the British government has at length replied, affirming that the operation of the treaty is prospective only, and did not re quire Great Britain to ttband on or contract any possessions held by her in Central A merica, at the date of its conclusion. This reply substitutes a partial issue, in the place of the general one presented by the United States. The British govern ment passes over the 4uestion of the rights of Great Britain, real or supposed, in Cen tral America, and assumes that she bad such rights at the date of the treaty, and that those rights comprehended the protec torship of the Mosquito Indians, the exten ded jurisdiction and limits of the Balize, and the colony of the Bay Islands, and thereupon proceeds by implication to infer, that, if the stipulations of the treaty be merely futtire in ellitct, Great Britain may still continue to hold the contested portions tit Central America. The United States cannot admit either the inference or the premises. We steadily - deny. that, at the date of the treaty, Great Britain had any possessions there, other than the liruiterl and peculiar establishment at the Balize, and maintain that, if she bad any, they were surrendered by the Convention; important is the negotia reference to The government recognizing the obliga tions of the treaty, has desired to see it ex- ecuted in both parties, anti in the discus sion, therefore, has not looked to rights; which we might assert, independently. of the treaty, in consideration. of our geo graphical position and of other circumstan ces, which create for us 'relations to the Central American States, different from those of any government of Europe. The British government, in its last com munication, although well knowing the views of the United States, still declares that it sees no reason why a conciliatory spirit may not enable the two governments to overcome all obstacles to a satisfactory adjustment of the subject. Assured of the correctness of the con struction of the treaty constantly adhered to by this government, 'and resolved to in sist on the rights of the United States, yet actuated also by the same desire which is avowed by the British government, to re move all causes of misunderstanding be tween two nations associated by so many ties of interest and kindred, it has appeared to me proper not to consider an amicable S , .111(1011 There is, however, reason to apprehend th.it, with Great Britain in the actual oven of the disputed territories and the treaty therefore, practically null, so' far as regards our rights, this international diffi culty cannot long remain undetermined, without involving in serious danger the friendly relations, which it is the interest as well as the duty of both countries to cherish .and preserve. It will afford me sincere .grAtification, if future efllirts shall result in the success, anticipated heretofore with more confidence than the aspect of the ease permits me now to entertain. One ether subject of discussion between the United states and Groat Britain has grown out f :he attempt, t%hich the exigen cies or the ‘Nar in which she IS engaged %% ith Russia induced her to Make, to draw re cruits frolll the ,Putted States. It is the traditional and settled policy of the United Status to maintain impartial ne•i trality cluring,,the wars which bout tune to line, occur among the great powers of the worl.l. Performing all the duties of neu trality fimards the respective beligerent States. \VC may reasonably expect them not to interfere with our lawful enjoyment of its henelits. Notwithstanding the existence of siieh Lustilities, our citizens retain the right to continue all their aeons t oineil pursuits, by land or by sea, at horn,. (. ahruo,(l. only to suelj resivii•tions iu this rei4II(0( us HI,. ht \VS (d • ar, th , os,tt.tt• or oat Hits, OF SpeCha ies way i0(1),(5(..; :111(1 1t is our sovereign ri;..t it that cur terri " tory and jut isdiction shall not be invaded by either ..I' the li'eligerent parties, Mr the transit of their tirmies, the openitions of their fleets, thu levy of troops for their ser vice, the lilting out of cruisers by oragainst either, or any other act or incident of iv;lr . . And these undeniable right ~ of nentralitry individual and national,llwUnited Statt4 will, tinder no circumstances, surrender. In pursuance of this policy, the Itms the r nited States do not forbid their citi zeps to sell to'cither of the belligerent pow ees articles, contraband of war, or to take munitions (.1 war or soldiers on hoard ), their prit 1 :11(: ships for IraliSpollttiOll, 111 11 1 0- ' 7 01011:411. in so doing.. the itolividn'al citizeti c.,posesids property or person to some of the Intl ird , of war, his ;leis Ito not • 111iy broileil of 11111i.oli:11 'nor ()I' themselves implicate thegovernment. Thus. (luring the progress of the present war in Europe, our citizens have, ‘vithout national responsibility IlieLeforc, sold gunpowder tool arms to nil litiyerS, regardless of the desti nation or those- Otir merchant men tare been, tktid still continuo lo he • largely employed by *Great Britain and REctli - vrmET gscr.l.i.okt *.tito3., '''' France,intAranspotting troops, prolf %l ons, and rbunitieta,ef war to 'the.princili seat of inilitarY;pPerations, and iiihringitighciree'; theift!sick and wounded soldiers, but such use of our mercantile marine is not inter-, dieted either o the international, or by our municipal , and therefore does notcom proniit our neutral relations withltussia. = But our municipal law, in accordance with the law of nations, peremptorily forbidi, not only foreigners, but our own citizens, tittit out, within the limits of the United States, a vessel to commit hostilities against any State with which the United States aro at pence, or to increase the force of any for eign armed vessel intended fur such hostili ties against ar i friendly State. Whatever doncern may have been felt by either of the belligerent powers lest private armed cruisers, or other vessels, in the ser vice of one, might be fitted out in the ports of this country to depredate on the property of the other, all such fears have proved to be utterly groundless. Our citizens have been withheld,from any such act or purpose by faith,good and by respect for the law. While the aws of the Union are thbs per emptory in their prohibition of the equip ment or armament of belligerent cruisers in our ports, they provide not fess absolutely that r.o person shall, within the territory or jurisdiction of the United States, enlist or enter himself, or to go beyond the limits or jurisdiction of the United States with intent to be enlisted or entered, in—tiicse of any foreign state, either as a soldib a marine or seaman on board of any vessel of war, letter of marque, or privateer. And these enactments are also in strict conform ity with the law of nations, which declares, that no state has the right to raise troops for land or sea service in another state with out its consent, and that, whether forbidden by the mapcipal law or not, the very at tempt to do it, without such consent, is an attack on the national sovereignty. Such being the public rights and the mu nicipal law of the United States, no solici tude on the subject was entertained by this government, when, a year since, the British Parliament passed an act to provide for the enlistment of foreigners in the military ser vice of Great Britain. Nothing on the face of the act. or in its public history, indica ted that the British government proposed to attempt recruitment in the United States; nor (lid it ever give intimation of such in tention to this government.. It v.as matter of surprise, therefore, to Mid, subsequently, that the engagement of persons Within the United States to proceed to Halifax. in the British province of Nova Scotia, and there enlist in the service of Great Britain, was going on extensively, with little or no dis guise. Ordinary legal steps were- imme diately taken to arrest and punish parties concerned, and so put an end to acts infring ing the municipal law and derogatory to our sovereignty,. Meanwhile suitable rep resentations on the subject were addressed to the British Government. Thereupon it became known, by the ad mission of the British government itself, that the attempt to draw recruits from this country originated with it, or at least had its approval and sanction ; but it also ap peared that the public agents engaged in it had "stringent instructions" not to violate the municipal law of the United States. It is difficult to understand how it should have been supposed that troops could be raised here by Great Britain, without viola tion of the municipal law. The unmistaka ble object of the law was to prevent every such act, %% filch, if performed, must be eith er in violation of the law, or in studied eva sion of it ; and in either alternative, the act done would be alike injurious to the sov ereignty of the United States. In the meantime, the matter acquired ad ditional importance, by their recruitments in. the United States not being discontinued, and the disclosure of the fact that they were prosecuted upon a systematic plan devised by official authority ; that recruiting rendez vous haul been opmfed in our principal ci ties, and depots for the reception of recruits established on our frontier; and the whole business conducted under the' supervision and by the regular co-operation of British officers, civil and military, some in the North American provinces, and some in the United States. The complicity of those of ficers itAn undertaking, which could only be accomplished by defying our laws, throw ing su , picion over our attitude of neutrali ty, and disregarding our territorial rights,, is conclusively proved by the evidynce e licited on the trial of such or their agents as have been apprehended and convicted.— of the officers thins implicated are of high official position. and many of them be yond our jurisdictiOn. so that legal proceed ings could not reach the source of the mis chief. These considerations,, and the fact that the cause of complaint %Vat.: not a mere cas ual ocruirrence, but a deliberate design, en tered upon with full knowledge of Mir lasts ,unl national policy, and conducted by re sponsible public functionaries. impelled me to present the case to the British govern ment, in order to secure not only a cessa ti.olt of the' Wrong but its reparation. The subjeet Is still miller discussion, the result or which will be communicated to you in due time.. VAIIIOI'S SUBJECT--SINIWSIS The President again recommends that pro• vision be made for the adjustment, by 80t vey, our disputed boundary between the terri• ry of Oregon owl the British Posses:4lms, as there.has been imminent danger of a collision there On the subject. Ile also recommends ihe e.litinguishnient, try purchase, of the rights f th;", Iliitioh 1111.6:Mt's Bay Company, and yuget's Agricultural C.mipany, in Ore and Washington Territories. I have thus passed in review the .general state of tile Union, inclhding such particular • concerns of the federal government. whether of dtanestie or fareip relation. as it appeared to me desimOlo and useful to bring to the cs pocial not;ce of Congril . ss. Unlike the great s: ales 'of r a ope'nd , and ti;tny of the of Arnthlea. these United St - ates - 4 al e wastin:l their etreegtil neither in foreign war nUl` The J'vt:t.hent tt tt.a;,,n , 4 c: the (..Onh.n Whate . vVr ;, V 1 The fi•lirry cottitnis , lion .11:ts been oo•gnnizc• hue conitnoticed its labors. the l Ithcf—Amyl Inr.t, the Unitell State gltve notice to Dennt:u•k of its intention to trrwi„att• the treaty of cominvre and navi:ja (hal zcitli that pow o', oito . yatafront that date on . net:turd. al :61 tide 11,I'rein v..hici, 1,..0e , :11,i:111e.1' 1110) ft Ftli sun ME the awe ought not to submit to tfior toile t be cause they in effect recognize the right of Denmark to treat as a close sea one of the great maritime highways of, nations. mark has indicated a readiness to make• some new arrangement on the subject, and has invi ted the governments interested to a convention to consider her proposal for the capitalization of the Sound Dues, and the distribution of the sum to be ; paid 'as commutation among the various nations in. proportion to their Baltic commerce: This invitation the President de clined accepiing, because Denmark did not offer to submit to the Convention the question of her right to levy the Sound dues, and be cause, if she did, the Convention would not be competent to deal with the great international principle of commercial freedom involved.— Above all, the Convention proposes to compli cote this topic with the Buropean balance of power. But while rejecting the proposition, the President has -.expressed to Denmark a willingness on the part of the United States to share with other powers in compensating her for her expenditures to improve the navi gation Of the Sound or Belts.. Should no satisfactory arrangement be soon concluded, the President will again call the attention of Congress to the subject. with a view to mea sures for the security of our rights. The difficulty with France about the French Consul at San Francisco has been satisfactorily adjusted, as also the difficulty with Greece about the sequestration of ,property belonging to the present Consul at Atheris. Spain has disavowed the seizure of the steamer Black Warrior, and has paid the indemnity. The other matters in dispute with Spain are the subject of negotiation, and the President hopes to conclude with that government some gene• ral arrangement to avoid future difficulties in Cuba. Demands for reparation for injuries done the American citizens and their property in Mexico, exist, but are obliged to wait for some Eet tled condition of affairs in that country. A casual reference is' made to the Nicaraguan tillthusters, from winch it appears that the President is, or desires to seem, hos tile to both Walker and Kinney, and is en deavoring to compass their expulsion from Central America. Treaties have been made with Naples and Hawaii. During the fiscal year ending June 30th, 1855, the receipts into the national treasury froth all. sources were,„ $65,003,930, and the' public expenditures, exclusive of payments on account of the public debt, '556,365,393. The payments in redemption of the public debt, including interest and premium, amount ed during the year to $9,844,528. The balance in the treasury, July Ist, 1855, was $18,931,976. For the present year the esti mated receipts are given at $67,918,734, making the available 're : Sources of the year $86,856,710. Theestiinated expenditures of the present year are stated at $71,226,846, thereby leaving an estimated balance in the treasury, on July Ist, 1856, of $15,623,863 40. At the commencement of the present fiscal year, the amount of the publlc:,debt was $40,- 583,631, and as payments have been made since, the debt is now less than forty millions. The President recommends; that a law be passed making it felony on the part of public officers to make false entries in their books of record, or make false returns. In view of the fact that the national revenue exceeds the wants of the government, the President re• commends a reduction of i the tariff. A de parture from the princple's of the present tariff, however, is not anticipated. As regards the army, the new regiments have been recruited, organized and sent to the tie d, where tho great bulk of the force has hee enmployed against the hostile Indians. A parti:il reorganization of the army is again re commended. The six new steam frigates will he ready for service early in the spring, rind the President recommends an appropriation to build six new s.tearn sloops of war. As the Post Office expenditures for the year have exceeded the receipts $2,626,206, and much of this is attributable to the enormous quantities of printed matter transmitted by wail free, the President recommends action to provide a remedy. • • Daring the year, the quantity of public land sold was 15,72;0,52-1 acres, yielding the sum of $11.155,380 The message says that ip the territory of Kanzas there have been acts prejudicial to good order, but ns yet none bazel.,,7oc.curred under eircurntganees _to justify the interposi tion oP the Federal Executive, uhieh, it says, could only be in case of obstruction to federal law, or orgarkeirresistatoce to territoriaClaw, assuming the character ottinsurrection. • el,NstrturtoNAL luroity OF THE GOVIMSMENT licdissatisfaction exists, is attributable to : tilt) idijieifectiens 4)6161:jail nature, or is incident to all governments, however perfect, which human wisdom can devise. Such sub jects of political agitation, as occupy the pub ic mind, consist, to a great extent, of ex aggeration of inevitable evils, or over zeal in social improvement, Or mere immagination of grievance, having but, :remote connex ion with any•of the constitutional functions or duties of the federal government. To what ever extent these questions exhibit a tenden cy menacing to the stability of the constf• tution ; or the integrity of the Union, and no further, they demand the consideration of the Executive, and require to bo presented by him to Congress. Before the Thirteen Colonies became a con federation of independent S,tittes, *Vey were associated only by community tir—trans-atlan- tic origin, by geographical position, and by the mutual do of common dependence on Great Britain. When that tie was sundered, they severally assumed the powers and rights of absolute self-government. The municipal and social institutions of each, its laws of property and of personal relation, oven in its political organization, were such only as each one chose to establish, whollyswitbout inter ference from any other. In the language of the Declaration of Independence, each State had "full power to levy , war, conclude mace. contract alliances, establish commerce, and to do all other things wh;ch independent States may of right do." The several colonies diff- ered in climate, in soil, in natural productions, in religion, in systems of education, in legisla_ tion, and in the forms of political administra tion i and th ey; continued to differ in these respects when they voluntarily allied them selves as States to carry on the war of the rev olution. , l. The object of the war was to diservthral the c - United Colonies from foreign rule, which h d proved to be oppressive, and to seporate the permanently from the mother country : the political result was the foundation of a fetlera,l republic of the free white men of the colonies, constituted as they were, in distinct, and re ciprocally independent State governments.— As for the subject races, whether Indian or African, the wise and brave state , men of that day, being engaged in no extravagant scheme of social change, left them as they were, and thus preserved themselves and their posterity from the anarchy, and the ever-recurring civ il wars, which have prevailed in other revolu tionized European colonies of America. When the confederated States found it con venient to modify the condition of their asso ciation, by giving to the general government direct access, in some respects tq, the people of the States, instead of confining it to the ac tion on the States as such, they procded to frame the existing constitut'utC — adhering steadily to one guiding though , which was, to delegate only such power a was necessary and proper to the execution of specific pur poses, or in other words, to retain as much as Possible; consistently with those purposes, of the independent powers of the individual States. For objects' of common defence and security, they entrusted to the general govern ment certain carefully defined functions, leav ing all others as the undelegated rights of the separate independent sovereignties. Such is the constitutional theory of our gov ernment, the practical observance of which has carried us, and us alone, among modern republics, through nearly three generations of time wilhout the cost of one drop of blood in civil war. With freedom and concert of ac tion, it has enabled us to contend successful ly on the battle field against foreign foes, has elevated the fetAle colonies into powerful States, and has - 1 4 a l iSinl our industrial produr lions, and oukdtnnierce which transports them to the level of the richest and the greatest na tions of Europe. And the admit able adoption of our political institutions to their objects, combining local self-govertitnent with aggre gate strength, has established the practicobili- ty of a government like ours to cover a conti nent with confederate States. The Congress of tho United States is in ef fect, that congre7of Suvreignties, which good men in the Old Worhil have sought for, but could never attain, until which imparts to A merica an exemption from the mutable leagues fur common action, fyom the wars, the mutual invasions, and vague aspirations after the bal ance of power, which convulses from time to time the governments of Europe. Our co-op errtive action rests on the conditions of per manent confederation prescribed by the con stitutivt. Our balance of power is in the ser aratirreserved rights of the States, and their equal representation in tho Senate. That in dependeilr'sovereiguty in every °tie of the States, with its reserved rights of ineal self so'vernmvit, assured to each by theiY ' co equal power in the Senate, Was the fundemental con dition of the constitution. Without it the njoll would never have existed. However Ile .iroas the larger States might be to re-organ ize the government so us to give to their pop illation its propolionnte iveilyht in the co:u moo counsels, they' knew it wils imlo..s they Coflee , led t.,1 the :‘o , • ' '"4z,e)4