BY WM. BREWSTER. TERMS Is publishoa at The "Ilnxitxonox .1 onegat: following rates t 11' paid in advance $l4lO 1f paid within six months after the time of subscribin;_ 1,75 If paid at the end of the year 2,00 And oto dollars and tifty cents If not paid till after the expiration of the year. No subscription, will be taken fur a less period than six months; and 'topper will he discontinued, except at the option of the Editor, anti! allarrearaps ore paid. Subscribers living in distant conutics,or in other States, will be required to pay invariably in advance. Ihe above terms will be rigidly adhered till eases. 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Sulocribers who do not give express notice to is contra q, are considered as wishing to continue their subscription. 2. y sabscriber3 ord., the discontinuance of their neuvapers, the publisher nary continue to send them until - all arrearages are paid. 3. lfaubscribers neglect or nfase to take their fiewvapersfrom the offices to which they a re direc ted, Mr?, are held responsible until they ham settled their bills and ordered them discontinued. 4. if subscribers remove to other places without irthrnaing the publisher, and the news tapers are sent to the former direction, they are held responsible. 5. Persons who continue to receive or take the paper front the ofiire, are to be considered as sub s..ribers and no such, wally responsible for subscrip tion, as if they had ordered their noises entered upon the publishers books. 6. The Courts hare also repeatedly decided that a Post Master who neglects to p‘Vbrns his duty of rain', reasonable ',olive as required by the regula tions y the Post (Wee bipartment, rf the of n per.., to lake from the qiice, newspapers .idttecs,ed to hint, remit. the Post Master liubc to the pubbeher tic hiewription pier. MESSAGE, a elude and 1 1113tive, 11, past has been an eventful year, and will be hereafter referred to as a marked cpueh in the history of the world. While we have beets happily preserved from the calamities of war, core domestic prosperity has nut been entirely uninterrupted. The crops, in portions of the country, have been nearly cut off. Disease has prevailed to a greater extent than usual, and the sacrifice of human life, through MU, he s,,a and land, is without a parallel.— lint the p.tilcime has swept be, and restored •Ilithrity invites the alment to their homes. and rot urn of liminess to its ordinary channels. li the earth has rewarded the labor of the hug. band tee less bountifully then its preceding seasons : it has left him almn•lanve fur donn,• tic WelltS, and a large surplus for exportation. In the present, therPtine, as in the past, we find nmpl, grounds fur reverent to the tied of Grave and Providence, or his prottiet ing care and merciful dealings with us as a Ithrovzh our attention has been nrreded by painful interest in passing mute, yet our coon- ' try feels no more than the slight vibrations of the convulsions which have shaken Enrope.— Au individuals, we cannot repress sympathy With human suthaing, nor regret fix the causes which produce it. As u nation, we are remin ded, that whatever interrupts the peace, or checks the prosperity, el nny part of Christen dom, tends, more or loss, to involve our own. The condition of states is not unlike that of in dividuals. They are mutually dependent upon each other. Amicable relations between them, and reciprocal good will, are essential for the promotion of whatever is desirable in their moral, social and political condition. Hence, it has been my earnest endeavor to maintain pence and friendly intercourse with all nations. The wise theory of this government, so early adopted and steadily pursued, of avoiding all entangling alliances, has hitherto exempted it from many complications, in which it would otherwise have Leconte involved. Notwith standing this our clearly defined and well-sus tain,:d course of action, and our geographical position so remote from Europe, increasing din position has been manifested, by some of its governments, to supervise, and, m certain re spects, to direct, our foreign policy. In plans for adjusting the balance of power among themselves, they have assumed to take us in to account, and would constrain us to conform our conduct to their views. One or another of the powers of Europe has, from time to time, undertaken to enforce arbitrary regulations, .contrary in many respects to established prin ciples of international law. That law, the United States have, in their foreign intercourse, uniformly respected and observed, and they cannot recognise any such interpolation there in, as the temporary interests of others may suggests. They do not admit that the sorer igns of one continent, or of a particular corn muoity of states, can legislate for all others. Leaving the trans atlantic nations to adjust their political system in the way they may think best for their common welfare, the inde pendent powers of this continent may well as sert the right to be exempt front all annoying interference on their part. Systematic absti meuee from intimate political connexion with distant foreign nations, dues not conflict with giving the widest range to our foreign com merce. This distinction, so clearly marked in • history, seems to have been overlooked, or dis regarded, by some leading foreign states. Our refusal to be brought within, and subjected to, their peculiar system, has, 1 fear, created a • jealous distrust of one conduct, and induced, on their part, occasional acts of disturbing ef fect upon our foreign relations. Our present attitude and past course give assurances, which should not be questioned, that our purposes uro not aggressive, to the safety and welfare of other nattuns. Our military establishment, in limo of peace, is adapted to maintain exterior defences, and to preserve order among the üboriginal tribes within the limits of the Union. Our naval force is intended only for the pro tection of our citizens abroad, and of our a . ;, tit, ,nss of th, tfunt•ng (°°lloriantat. " I BEE NO STAR ABOVE THE HORIZON, PROMISING LIGHT To GUIDE us, BUT TUE INTELLIGENT, PATRIOTIC, UNITED WHIG PARTY OP THE UNITED STATES."—[WEBSTER. globe. The government of the United States, being essentially pacific in policy, stands pre• pared to repel invasion by the voluntary ser• vice of a patriotic people, and provides no per manent means of foreign aggression. These considerations should allay all apprehension, that we are disposed to encroach on the rights, or endanger the security of other States. Some European powers have regarded, with disquieting concern, the territorial expansion of the United States. This rapid growth has resulted from the legitimate exercise of sover eign rights, belonging alike to all nations, and by many liberally exercised. Under such cir cumstances, it could hardly have been expect. ed that those among them, which have, within a comparatively recent period, subdued and absorbed ancient kingdons, planted their stan dards on every continent, and now pos seas, or claim the control of the islands of every ocean as their appropriate domain, would look with unfriendly sentiments upon the acquisitions of this country, in every in stance honorably obtained, or would feel them selves justified in imputing our advancement to a spirit of aggression or to a passion fur po. !ideal predominance. Our foreign commerce has reached a mag nitude and extent nearly equal to that of the first maritine power of the earth, and exceed. ing that of any other. Over this great inter est, in which not only our merchants, but all classes of citizens ant least indirectly, are cons ecrated, it is the duty of the executive and leg islative branches of the goverment to exercise a careful supervision, and adopt proper meas ures for its protection. The policy which I have had in view, in regard to this interest, embraces its future as well as its present semi. rite. $1 25 1 50 2 50 -. Lon g experience has shown that, in general, when the principal powers of Europe aro en gaged in war, the rights of neutral nations aro endangered. This consideration led, in the progress of the war of our independence, to the thrmation of the celebrated confedracy of arm ed neutrality, a primary Object of which was, to assert the doctrine, that free ships make free goods, except in the ease of articles contraband of war n doctrine which, front the very com mencement at our national being, has been a cherished idea of the statesmen of this country. At one period or another, every maritime pow. er hos, by noise solemn treaty stipulation, re cognised that principle; and it might have been hoped that it would come to be uni versally received and respected as a rule of international law. But the refusal of one power prevented this, and in the next great war which ensued, that of the French revolu tion, it failed to be respected among, the belli gerent States of Europe. Notwithstanding this, the principle is generally admitted to be a sound and salutary one ; so much so, that, at the commencement of the existing war iu Eu rope, Great Britain and France announced their purpose to observe it Pit. the present; not, however, us a recognised international right, but as a mere concession of the time being.— The cooperation, however, of these two power- IV maritime nations in the interest of neutral rights, appeared to me to afford an occasion, inviting and ja,tifying, on the part of the Uni ted States, a renewed effort to make the doc trine in question a principle of international law, by means of special conventions between the several powers of Europe and America.— ccordingly, a proposition, embracing not only the rule, that free ships make free goods, ex cept contraband articles, but also the less con tested one, that neutral property, other than contraband, though on board enemy's ships, shall be exempt from confiscation, has been submitted by this government to those of Eu rope and America. Russia acted promptly in this matter, and a conventinu was concluded, between that-coun try and the United States, providing for the observance of the principles announced, not only ns between themselves, but also as be. L , Veell them and till other nations, which shall cm a. into like stipulations. None of the oth r powers have as yet taken final action on the pubject. lam sot aware, however, that any objection to the proposed stipulations has Leon made; but, 011 the contrary, they are acknowledged to be essential to the security of neutral commerce ; and the only apparent obstacle to their general adoption is in the po,sibillity, that it may be encumbered by in udinifsible conditions. The King of the Two Sicilies has expressed to our minister at Naples his readiness to con cur in our proposition relative to neutrel rights, and to enter into a convention on that subject. The King of Prussia entirely approves of the project of a treaty to the same effect, sub mitted to him, but proposes an additional ar ticle providing fur the renunciation of priva teering. Such an article,, for most obvious reasons, is much desired by nations having na val establishments, large in proportion to their foreign commerce. If it wore adopted as an international rule, the commerce of a nation having comparatively a small naval force, would be very much at the mercy of its enemy, in case of war with a power of decided naval superiority. The bare statement of the condi tion in which the United States would be pla ced, after having surrendered the right to re sort to privateers, in the event of war with a belligerent of naval supremacy, will show that this government could never listen to such a proposition. The navy of the first maritine power in Europe is at least ten times as large as that of the United States. The foreign cotitmerce of the two countries is nearly equal, and about equally exposed to hostile depreda tions. In war between, that power and the United States, without resort en our Mercan tile marine, the means of our enemy to inflict injury upon our commerce would be tenfold greater than ours to retaliate. We could not extricate our country from this unequal con dition, with such an enemy, unless we at once departed from our present peaceful policy, and became a great naval power. Nor would this country be better situated in war with one of the secondary naval powers. Though the naval disparity would be less, the greater ex tent, and more exposed condition of our wide spread commerce, would give any of them a like advantage over us. The proposition to enter into engagements to forego resort to privateers, in case this country should be forced into war with a great naval power, is not entitled to more favorable consideration than would be a proportion to agree not to accept the services of volunteers for opperations on land. When the honor or. the rights of our country require it to assume a hostile attitude, it confideattly relies upon the patriotism of its citizens, not ordinarily deco. ted to the military profession, to augment the army and the navy, so as to make them fully adequate to the emergency which calls them into action. The proposal to surrender the right to employ . privateers is professedly found. ed upon the principle, that private property of unoffending noncombatants, though enemies, should be exempt from the ravages of war ; but the proposed surrender goes but little way in curriing out that principle, which equally requires that such private property should not be seized or molested by national ships of war. Should the loading powers of Europe concur in proposing, as a rule of international law, to exempt private property, upon the ocean, from t., I , well nt HUNTINGDON, PA., WEDNESDAY, DECEMBER 13, 1854. by privateers, the United States will readily meet them upon that broad ground. Since the adjournment of Congress, the rat• ifications of the treaty between the United States and Great Britain, relative to coast fisheries, and to reciprocal trade with the British North American provinces,, have been exchanged, and some of its anticipated advantages are already enjoyed by us, although its full execution was to abide certain acts of legislation not yet fully performed. So soon as it was ratified, Great Britain opened to our commerce the free navigation of the river St. Lawrence, and to our fishermen unmolested access to the shores and bays, from which they had been previously excluded, on the coasts of her North American provinces ; in return for which, she asked for the introduction, free of ' duty, into the ports of the United States, of the fish caught on the same coast by British fish erman. This being the compensation stiploa• ted is the treaty, for privileges of the highest importance and value to the United States, which were thus voluntarily yielded before it became effective, the request seemed to me to be a reasonable one ; but it could not be acceded 'to, from want of authority to suspend our laws imposing duties upon all foreign fish. In the mean time, the Treasury Department issued a regulation, for ascertaining the duties paid or secured by bonds on fish caught on the coasts of the Bill fish provinces, and brought to our markets by Brittish sujects, after the fishing grounds has been made fully accessible to the citizens of the United States. I recomend to your fit. vorable cosideration a proposition, which will he submitted to you, for authority to refund the duties, and cancel the bonds thus received. The provinces of Canada and New Brunswick have also anticipated the full opperation of the treaty, by legislative arrangements, respective ly, to admit, free of duty, the products of the United States mentioned in the free list of the treaty; and an arrangement, similar to that regarding British fish,has been made for ditties now chargeable on the products of those .prov inces enumerated in the same free list, and introduced therefrom into the United States; a proposition for refunding which will, in my judgment, be in like manner entiled to your frvorable condition, There is differanee of opinion between the United States and Great Briton, as to the boundary line of the Territory of Washington adjoining the British possessions on the Pa-' cific, which has already led to dfliculties on the part of the citizens and local authorities of the two governments. I recommend that provision be made for a commission, to be ,domed by ono on the part of her Britannic Ma jesty, for the purpose of running and establish ing the line in controversy. Cetain stipulations of the third and fourth articles of the treaty concluded by the United States and Great Brittain in 1846, regarding possessory rights of the lludson's Bay Company, and property of the Pugees Sound Agricultural Company, have given rise to serious disputes, and it is is important to all concerned, that summary j means of settling them amicably should be devised. I have reason to believe, that an ar raugemeut of the right can ho made on just terms, for the extinguishment of the rights in question, embracing, also, the right of the Hudson's Bay Company to the navigation of the river Columbia ; and I therefore suggest to your consideration, the expediency of tan king a contingent appropriation fur that pun peso. France was the early and efficient ally of the United States in their struggle for iinh;ped. once. From that time to the present, with. occasional slight interruptions, cordial relations of friendship have existed between the gov ernments and people of two countries. The kindly sentiments cherished alike by both na tions, have led to extensive social and coin- mum! intercourse, which I trust, will not he j interrupted or checked by any casual event of an apparently unsati;factory . character.— The French consul at San Francisco was not long since, brought into the United States district court at that place, by compulsory process, as a witness in favor of another go, crument conceives, of his privalege under our consular convention with France. There being nothing in the transaction which could imply any disrespect to France or its consul, such explanation has been made, as I hope will be satisfactory. Subsequently, misunder standing arose on the subject of the French government having, as it appeared abruptly excluded the American minister to Spain from passing through France, on his way from London to Madrid. 13ut that government has unequivocally disavowed any right of transit to the minister of the United States ; and, after explanations to this effect, he has re sumed his journey, and actually returned through France to Spain. I herewith lay before Congress the correspondence on this subject between our envoy at Paris, and the minister of foreign relations of the French Govern ment. The position of our affairs with Spain re mains as at the close of your last session. Inter nal agitation, assumin 4. very nearly the char acter of political revolution, has recently con vulsed that country. The late ministers were violently expelled from power, and men, of very different views in relation to its internal affairs, have succeeded. Since this change, there has been no propitious opportunity to re sume, and press on, negotiations for the adjust. ment of serious question of difficulty between the Spanish government and the United States. There is reason to believe that our minister will find the present government more favora bly inclined than the preceding to comply with our just demands, and to make suitable arrangements for restoring harmony, and pre serving peace, between the two countries. Negotiations are pending with Denmark to discontinue the practice oflevying tolls on our vessels and their cargoes passing through the Sound. Ido not doubt that we can claim axetnption therefrom, as a matter of right- It is admitted on all hands, that this exaction, is sanctioned, not by the general principals of the law of nations, but only by special conventions which most of the commercial nations have entered into with Denmark. The fifth article of our treaty of 1826, with Denmark, provides, that there shall not be paid on vessels of the Untied States and their cargoes when passing through the Sound, higher duties than those of the most favored nations. This may be re garded as implied agreement to submit to the tolls during the countenance of the treaty. and, consequently, may embarass the assertion of our right to be released therefrom. There aro al,o other provisions in the treaty which ought to be modified. It was to be in force for ten years, and until one year after ether party should give notice to the other of intention to terminate it. I deem it expedient that the contemplated notice should be given to the government of Denmark. The naval expedition, despatched about two years since for the purpose of establishing re lations with the empire of Japan, has been ably and skillfully conducted to a successful termination by the officer to whom it was en trusted. A treaty, opening certain of the ports of that populous country, has been negotiated ; and in order to give fug effect thereto, it only remains to exchange ratificatious, and adopt repiisite commercial regulation,. The treaty lately concluded between the United States and Mexico settled some of our most embarrassing difficulties with that coun try, but numerous claims upon it for wrongs and injuries to our citizens remained unadjust ed, and many new cases have been recently ad ded to the formerlist of grievances. Our le gislation has been earnest in its endeavors to obtain, from the Mexican government, a favor able consideration of these claims, but hither to without success. This failure is, probably, in some measure, to be ascribed to the distur bed condition of that country. It has been my anxious desire to maintain friendly relations with the Mexican republic, and to cause its rights and territories to he respected, nat only by our citizens, but by foreigners, who have re sorted to the United States for the purpose of organizing hostile expeditions against some of the States of that Republic. The defenceless condition. in which its frontiers have been left, has stimulated lawless adventures to embark in these enterprises, and greatly increase the dif ficulty of enforcing our obligations of neutrali ty. Regarding it as my solemn duty to fulfil, efficiently, these obligations, not only towards Mexico; but other foreign nations, I have ex erted all the powers with which I am invested to defeat such criminal proceedings, and bring to punishment those who, by taking a part therein, violated our laws. The energy and ac tivity of our civil and military authorities have frustrated the designs of those who meditated expeditions of this character, except in two in stances. One ot these, composed of foreigners, was at first countenanced and aided by the Mexican government itself, it havin„o been de ceived as to their real object. ' t he other, small in number, eluded the vigilance of the magistrates at San Francisco, and succeeded in reaching the Mexican territories; but the a; fective measures taken by this government compelled the abandonment of the underta king. . . The commission to establish the new line between the United States and Mexico, item , ding tu the provisions of the treaty of the 30th of December last has been organized, and the work is already commenced. Our treaties with the Argentine Confedera tion, and with the Republics of Uruguay and Paraguay, secure to us the free navigation of the river La Plata, and some of its larger trib utaries ; but the same success has not attended our endeavors to open the Amazon. The rea sons in favor of the free use of that river, I bad occasion to present fully, in a former mes sage; and, considering the cordial relations which have always existed betweenthis govern ment and Brazil, it may be expected that pend ing negotiations will, eventually, reach a fa vorable result. Convenient means of transit, between the several parts of a country, are not only desira ble for the objects of commercial and personal communication, but essential to its existence under one government. 4eparated as are the Atlantic and Pacific coasts of the United States by the whole breadth of the continent, still the inhabitants of each are claply bound together by community of origin and institutions, and by strong attachment to the Union. Hence the constant and increasing intercourse, and vast intechange of commercial productions, be tween these remote divisions of the Republic. At the present time, the most practicable and only commodious routes for communeation be tones them are by the way of the 'times of Central America. It is the duty of the gov ernment to secure these avenues against all danger of interruption. In relation to Central America, perplexing questions existed between the Unites States and Great Britain at the time of the cession of California. These, as well as questions which subsequently nrose concerning interoeeanie communication across the Isthmus, were, as it was supposed, adjusted by the treaty of April 19, 1830: btit, unfortunately, they have been re-opened by serious misunderstanding as to the import of some of its provisions, a readjust ment of which is now under consideaation. Our minister at London has made strenuous efforts to accomplish this desirable object, but has not yet found it possible to bring the imp, tiations to a termination. As incidental to these questions, 1 deem it proper to notice an occurrence which happened in Central America near the close of the last session of Congress. So soon as the necessity was perceived of establishing inter-oceanic com in unications across the Isthmus, a company was organized, under authority of the State of Nicaragua, but composed, for the most part, of citizens oldie United states, for the purpose of opening such a transit way, by the river San Juan and Lake Nicaragua, which soon became an eligible and much used route in the trans portation of onr citizens and their property be tween the Atlantic and Pacific. Meanwhile, and in anticipation of the completion and lin portance of this transit way, a nuniher of ad venturers had taken possession of the old Span ish port at the mouth of the river San Juan, in open defiance of the State or States of Central America, which, upon their becoming indepen dent, had rightfully succeeded to the local sov ereignty and jurisdiction of Spain. These ad- 1 venturers undertook to change the name of the l i place from San Juan del Norte to Greytown, and, though at first pretending to act as the subjects of the fictitious sovereign of the Mos quit° Indians, they subsequently repudiated the control of any power whatever, assumed to adopt a distinct political organizatibn, and de dared themselves an independent sovereign State. it; at some time, a faint hope was en tertained that they might become a stable and respectable community, that hope vanished. They proceeded to assert unfounded claims to civil jurisdiction over Punta Arenas, a position on the opposite side of the river San Juan, which was is possession, under a title wholly independent of them, of citizens of the United States, interested in the Nicaragua Transit Company, and which was indispensably ttees nary to the prosperous operation of that route across the Isthmus. The company resisted their ,groundless claims ; whereupon they pro ceeded to demolish Koine of its buildings, and attempted violently to dispossess it. At a later period they or n •mnized a strong force for the purpose. of demolishing the estab lishment of Punta Arenas, but this mischievous design was defeated by the interposition of one of our ships of war, at that time in the harbor of San Jimn. Subsequently to this, in May lest, a body of men front Greytown crossed otter to Punta Arrenas, arrogating authority to arrest, on the charge of murder, a captain of one of the steamboats of the Transit Company. Being well aware that the claim to exercise had there wonld be resisted then, as it had been on previous occasions, they wentpre pared to assert it by force of anus. Our mitt tater to CeutralAmerica happened to be present on that occasion. Believing the captain of the steamboat was innocent, for ho witnessed the transaction on which the charge was found ed, and believing, also, that the intruding party, having no jurisdiction over the place where they proposed to make the arrest, would en counter desperate resistance if they persisted in their purpose,the ieterposed, effectually, to pre vent violence and bloodshed. The American minister afterwards visited Greytown and whilst he was there, a mob, ineludingeertain of the so called public functionaries ofthe place,surroun- Bed the house in which be was, crowing that they hod conic to arrest him. hj.ch - der of some person exercising the chief authority. While parleying with them he was wounded by a missile from the crowd. A boat, despatched from the American steamer "Northern Light," to release him from the perilous situation in which he was understood to be, was tired into by the town guard, and compelled to return. These incidents, together with the known char. atter of the population of Greytown, and their excited state, induced jest apprehensions that the lives and property of our citizens at.Punta Arenas would be in imminent danger after the departure of the steamer, with her passengers, for New York, unless a guard was left for their protection. For this purpose, and in order to ensure the safety of passengers and property passing over the route, a temporary force was organized, at considerable expense to the United States, fur which provision was made at the last session of Congress. This pretended community, a heterogenous assemblage gathered from various countries, and composed, for the inset part, of blacks and persons of mixed blood, had previously given other indications of mischievous and dangerous propensities. Early is the same month, property was clandestinely abstracted from the depot of the Transit Company, and taken to Greytown. The plunderers obtained shelter there, and pursuers were driven back by its people, who not only protected the wrong doers and shared the plunder, but treated with rudeness and violence those who sought to re cover their property. Such, in substance, are the facts submitted to my consideration, and proved by trustwor thy evidence. I could not doubt that the case demanded the interposition of this government. Justice required that reparation should be madu for so many and such gross wrongs, and that a course of insolence and plunder, tending directly to the insecurity of the lives of numer ous travellers, and of the rich treasure belong ing to our citizens, passing over this transit way, should be peremptorily arrested. What ever it might be, in other respects, the commu nity in question, in power to do mischief, was not despicable. It wus well provided with or dnance, small arms, and ammunition, and might easily seize on the unarmed boats, freighted with millions of property, which daily passed almost within its reach. It did not pro fess to belong to any regular government, and had, in fact, no recognized dependence on, or connexion with, any one to winch the United States or their injured citizens might ap ply for redress, or which could be hold respon sible, in any way, for outrages committed. Not standing belbre the world in the attitude of an organized political society, being neither competent to exercise the rights nor discharge the obligations of a govenment, it was in fact, a marauding establishment, too dangerous to be disregarded, and too guilty to pass unpunished, and yet incapable of being treated in any other way than as a piratical resort of outlaws or a camp of savages, depredating on emigrant trains or caravans and the frontier settlements of civilized states. Seasonable notieo was given to the people of Greystowu that this government required them to repair the injuries they had done to our citizens, and to make suitable apology for their insult of our minister, and that a ship-of war would be despatched thither to ent orce compliance with these demands. But the no tice passed unheeded. Thereupon, a com mander of the navy, in charge of the sloop of war "Cyane,' was ordered to repeat the de mands, and to insist upon a compliance there with. Finding that neither the populace, nor those assuming to have authority over them, manifested any disposition to make the requi red reparation, or even to offer excuse for their conduct, he warned them, by a public procla mation, that if they did not give satisfaction within a time specified, he would bombard the town. By this procedure he afforded them opportn. pity to provide fur their personal safety. To those also who desired to avoid loss of proper ty, in the punishment about to be inflicted on the oftbuding town, he furnished the means of removing their effects, by the boats of his own ship, and of a steamer which he procured and tendered to them for that purpose. At length, perceiving no disposition on the part of the town to comply with his requisitions, ho ap• pealed to the commanded of her Britannic Majesty's schooner "Bermuda," who was seen to have intercourse, and apparently much in fluence with the leaders among them,—to in terpose, and persuade them to take some course calculated to save the necessity of resorting to the extreme measure indicated in his procla mation ; but that officer, instead of acceding to the request, did nothing more than to protest against the contemplated bombardment. No steps of any sort were taken, by the people, to give the satisfaction required. No individuals, if any there were, who regarded themselves as not responsible for the misconduct of the com munity, adopted any means to seperate them selves trout the fate of the guilty. The several charges, on which the demands for redress wets founded, had been publicly known to all for some time, and were again announced to them. They did not deny any of these charges; they offered no explanation, ' nothing in extenuation of their conduct ; but contumaciously refused to hold any intercourse with the commander of the "Cyane. ' By their obstinate silence they seemed rather desirous to provoke chastisement titan escape it. There is ample reason to believe that this conduct of wanton defiance, on their part, is imputable chiefly to the delusive idea that the American gevernment would he deterred from punishing them, through fear of displeasing a formidable foreign power, which they presumed to think, looked with complacency upon their aggressive and insulting deportment towards the United States. The "Cyano" at length tired upon the town. Before much injury had been done, the fire was twice suspended, in order to afford op portunity for an arrangement; but this wan declined. Most of the buildings of the place, of little value generally, were, in the sequel, destroyed; but owing to the considerate pre cautions taken by our naval commander, there was no destruction of human life. When the "Cyane" was ordered to Central America, it was confidently hoped and expec ted that no occasion would arise for "a resort to violence and destruction of property and loss of life." Instructions to that effect were given to her commander. And no extreme act would have been requisite had not the people them• selves, by their extraordinary conduct in the affair, frustrated all the possible mild measures for obtaining satisfaction. A withdrawal from the place, the object of his visit entirely defea ted, would, under the circumstances in which the commander of the "Cyane" found himself, have been absolute abandonment of all claim of our citizens for indemnification, and stib missive acquiescence in national dignity. It would have encouraged in these lawless men a spirit of insolence and rapine most dangerous to the lives and property of our citizens at Punta Arenas, and probably emboldened them to grasp at the treasure and valuable merchan dise continually passing over the Nicaragua route. It certainly would have been most satisfactory to me if the objects of the 'l.:l%We' mission could have been committed without any act of public force ; but the arrogant con tumacy of the offenders rendered it impossible to avoid the alternative. either to break up their estebli•htnent. or 1 , , leaves them imprt,i ed with the idea that they might persevere with impunity in a career of insolence and plunder. This transaction has been the subject of complaint on the part of some foreign powers, and has been characterized with more of harsh ness than of justice. Ifcomparisons were to be instituted, it would not be difficult to present repeated instances in the history of States, standing in the very front of modern civiliza tion, where communities, far less offending and more defenceless than Greytown, have been chastised with much greater severity, and where not cities only have been laid in ruins, but human life has been recklessly sacrificed, and the blued of the innocent made profusely to mingle with that of the guilty. Passing from foreign todomestic affairs, your attention is naturally directed to the financial condition of the country, always a subject of general interest. For complete and exact in formation regarding the finances, and the va rious branches of the public service connected therewith, I refer you to the report of the Sec retary of the Treasury; from which it will ap pear, that the amount of revenue during the last fiscal year, from all sources. was seventy three million five hundred and forty-nine thou sane seven hundred and five dollars; and that the the public expenditures for the same peri od, exclusive of payments on account of the public debt, amounted to fifty-one million eighteen thousand two hundred and forty-nine dollars. During the same period, the payments made in redemption of the public debt, Mein. ding interest and premium, amounted to twen ty-four million three hundred and thirty-six thousand three hundred and eighty dollars.— To the sum total or the receipts of that year is to be added a balance remaining in the Treas ury at the commencement thereof, amounting to twenty-one million nine hundred and forty two thousand eight hundred and ninety-two dollars; and at the close of the same year, a corresponding balance amounting to twenty million one hundred and thirty-seven thousand nine hundred andsixty seven dollars of receipts above expenditures,also remained in the Treas ury. Although, in the opinion of the SecreM ry of the Treasury, the receipts of the current j fiscal year are not likely to equal in amount those of the last, yet they will undoubtedly ex-' ceed the amount of expenditures by at least fifteen millions of dollars. I shall, therefore, continue to direct that the surplus revenue be applied, so far as it can be judiciously and economically done, to the reduction of the pub lie debt. the amount of which, at the commence ment of the last fiscal year, was sixty-seven j million three hundred and oily thousand nix hundred and twenty eight dollars; of which j there had been paid on the 20th of November, 1854, the sum of twenty-two million three hnn dred and sixty-five thousand one hundred and seventy-two dollars; leaving a balance of out standing public debt of only forty-four million nine-hundred and seventy-five thousand four hundred and fifty-six dollars, redeemable at different periods within fourteen years, There are also remnants of other government stocks, J most of which are nearly due, and on which the interest hes ceased, but which have not been presented for payment, amounting to two bun died and thirty-three thousand one hundred and seventy-nine dollars. This statement ex hibits the facts that the annual income of the government greatly exceeds the amount of its public debt, which latter remains unpaid, only because the time of payment has not yet ma tured, and it cannot be discharged at once, ex cept at the option of public creditors, who pre fer to retain the securities of the United States; and the other fact, not less striking, that the annual revenue from all sources exceeds, by many millions of dollars, the amount needed for a prudent and economical administration of the government. The estimates presented to Congress from the different Executive Departments, at the last session, amounted to thirty-eight million four hundred and six thousand five hundred and eighty-one dollars; and the appropriations made to the sum of fifty-eight million one him dred and sixteen thousand nine hundred and fifty-eight dollars. Of this excess of appropri ations over estimates, however, more than twenty millions was applicable to extraordina ry objects, having no reference to the usual annual expenditures. Among these objects was embraced ten millions to meet the third article of the treaty between the United States and Mexico; so that, in fact, for objects of or dinary expenditure, the appropriations were limited to considerably less than forty millions of dollars. I therefore renew my recommen dation for a reduction of the duties on imports. The report di the Secretary of the Treasury presents a series of tables, showing the opera tion of the rem.° systems for several StICCOS. sive years, and as the general principle of re duction of duties with a view to revenue and not j prutection may now be regarded as the settled policy of the country, I trust that little difliculty will be encountered in settling the details of a measure to that effect. In connexion with this subject, I recommend a change in the laws, which recent experience has shown to be essential to the protection of the government. Thereis no expressprovision of law, requiring the records and papers of a public character, orate several officers of the government, to be left at their offices tbr the use of their successors, nor any provision de claring it a felony on their part to make false entries in the books, or return false accounts. In the absence of such express provision by law, the outgoing officers, in many instances, have claimed and exercised the right to take into their possession, important books and pa pers, on the ground that these were their pri vate property; and have placed them beyond the reach of the government. Conduct of this character, brought is several instances to the notice of the present Secretary of the Treasu ry, naturally awakened his suspicion, and re sulted in the disclosure that at four ports, namely, Oswego, Toledo, Sandusky, and Mil waukie, the treasury had been defrauded, with in the four years next preceding ➢larch, Ma, of the sum of one hundred and ninety-eight, thousadd dollars. The great difficulty with which the detection of these frauds has been attended,- in consequeuce of the abstraction of books and papers by the retiring officers, and the facility with which similar frauds in the public service may be perpetrated, render the necessity of new legal enactments, in the re spects above referred to, quite obvious. For other material modification of the revenue laws which seem to me desirable, I refer you to the report of the Secretary of the Treasury. That report, and the tables which accompany it, furnish ample proofs of the solid foundation on which the financial security of the country rests, and of the salutary influence of the in dependent treasury syStam upon commerce and all monetary operations. The experience of the last year furnishes additional reasons, I regret to say, of a painful character, fur the recommendation heretofore made, to provide for iucreasiug the military force employed in thB territory inhabited by the Indians. The settlers on the frontier have suffered much from the incursions of predatory bands, and large parties of emigrants to oar Pacific possessious ha,,; been massacred with impunity. The recurrence of such scenes eau only be prevented by teaching these will tribes the power of, and their responsibility to the United Stab,. Firm the ;Arrive', of our VOL. 19. NO. 50. frontier posts, it is only possible to detach troops in small bodies and though these have on all occasions displayed a gallanty and a stern devotion to duty, which on a larger field would have command , d universal admiration, they have usually suffered severely in these conflicts with superior numbers, and have sometimes been entirely sacrificed. All the disposable force of the army is already employ- I ed on this service, and is known to be wholly inadequate to the protection which should be aftbrded. The public mind of the country has I been recently shocked by savage atrocities committed upon defenceless emigrants and border settlements, and hardly less by the on necessary destruction of valuable lives, where inadequate detachments of troops have under- taken to furnish the needed aid. Without in crease of the military force, these scenes will be repeated, it is to be feared, on a larger scale, and with more disastrous consequences. Con. gross, I am euro, will perceive that the plainest duties and responsibilities of government are involved in this question, and I doubt not that prompt action may be confidently anticipated when delay must be attended by such fearful hazards. The bill of the lest session, providing for an increase of the pay of the rank and file of the army has had beneficial results, not only in facilitating enlistments, but in obvious improve. ment in the class of men who enter the set , vice. I regret that corresponding considera. tion was not bestowed on the officers, who in view of their character and service., and the expenses to which they are necessarily subject, receive at present what is, in my judgment, in adequate compensation. The valuable services constantly rendered by the army, and its inestimable importance, as the neuelus around which the volunteer for ces of the nation can promptly gather in the hour of danger, sufficiently attest the wisdom of maintaining a military peace establishment; but the theory of our system and the wiee prac. tice under it, require that any proposed aug. mentation, in time of Knee, be only commen surate with our extended limits and frontier relations. While scrupulously adhering to this principle, I find, in existing circumstances a necessity for increase of our military force, and it is believed that four new reeiments, two of inffintry and two of m3unted men, will be sufficient to meet the present exigency. If it were necessary carefully to weigh the cost in a case of such urgency, it would be shown that the additional expense would be comparatively light:. . . _ . _ _ _ 'With the increase of the numerical force of the army should, 1 think, be combined certain measures of reform in its organic arrangement and administration. The present organization is the result of partial legislation often directed to special objects and interests; and the laws regulating rank and command, having been adopted many years ago from the British code, are not always applicable to our service. It is not surprising therefore, that the system should be deficient in the symmetry and simplicity es sential to the harmonious working (slits sever al parts and require a careful revision. 'flu present organization, by maintaining large staff corps or departments, separates ma ny officers from that close connexion with troops, and those fictive duties in the fie!,l, which are deemed requisite to qualify them fi,r the varied responsibilities of high command.— Were the duties of the army staff mainly dis charged by officers detached from their regi meets, it is believed that the special service would be equally well performed and the dis cipline and instruction of the tinny be impror. ed. While due regard to the security of the officers, and to the nice sense of honor which should be cultivated among them, would seem to exact compliance with the established rule of promotion in ordinary cases, still it can be hardly doubted that the range of promotion by selection, which is now practically confined to the grade of general officers, might be some what extended with benefit to the public ser vice. Observance of the rule of sonority some times leads, especially in titue of peace, to the promotion of officers who, after meritorious and even distinguished service, may have been rendered by age or infirmity incapable of per forming active duty, and whose advancement, therefore, would ten d to impair the efficiency of the army. Suitable provision for this class of officers, by the creation of a retired list, would remedy the evil, without wounding the just pride of tnen who, by past services have established a claim to high consideration. In again commending this measure to the favors ble consideration of Congress, 1 would suggest that the power of placing officers on the retired list be limited to oneyear. The practical ope ration of the measure would thus be tested,and if after the lapse of years, there should he occa sion to renew the provision, it can be reprodu ced with any improvements which experience may indicate. The present organization of the artillery into regiments is liable to obvious ob. jections. The service of artillery is that of batteries, and an organization of batteries into &corps of artillery would be more consistent with the nature of their duties. A large part of the troops now called artillery are, and have been on duty as infantry ; the distinction be tween the two arnts being merely nominal,— This nominal artillery in our service is entirely disproportionate to the whole force, and greattr than the wants of the country demand. therefore (maimed the discontinuance of a distinction which has no foundation is either the arms used or the character of the service expected to bp performed. In connection with the proposition fur the increase of the army, I have presented these suggestions with regard to certain tneasures of ref - twin, as the complement of a system which would produce the happiest results from a giv. en expenditure, and which 1 hope my attract the early attention, and be deemed worthy of the approval of Congress. The recommendation of the Secretary of tho Navy, having reference to more ample provi aims for the discipline and general improve mut in character of seamen, and for the re organization and gradual increase of the navy, I deem eminently worthy of your favorable C 011• sideratiou. The principles, u !deli have CO2- trolled our policy in relation to the permanent military force, by sea and land, are sound, con sistent with the theory of our system, and should by uo means he disregarded. But, limiting the force to the objects particularly set forth in the proceeding part of this message, we should not overlook the present magnitude and prospective extension of our commercial marine, nor fail to give due weight to the fact that, besides the two thousand miles of Atlan tic seaboard, we have now a Pacific, coast, stretching from Mexico to the British posses. sions in tho north, teeming with wealth and en. terprise, and demanding the constant presence of ships-of war. The augmentation of the ea vy has not kept pace with the duties properly and prefitably assigned to it in time of peace, and it is inadequate for the large field of its operations, nut merely in the present but still more in the progressively increasing exigeu cies of the wealth nod commerce of the United States- I cordially approve of the proposed apprentice system for our national vessels, re ...mended by the Secretary of the Navy. The oceurenee, during hiss last few months, of Cerise disftstsTs of the most tragic nature, involving gres., loss of human life his r.rodeced it:son! , em , stione of srrnpstbs• *lli Immo