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There in no adequate protection to either ; and in
this respect our treaty with that republic is almost
a dead letter.
This state of affairs was brought to a crisis in
May last, by the promulgation of a decree levying
a contribution pro rata upou all the capital in the
republic, betwecu certain specified amounts,
whether held by Mexicans or foreigner/*; Mr For
syth, regarding this decree in the light of a for
ced loan.” formally protested against itss applica
tion to his countrymen, and advising them not to
pay the eonbution, but to suffer it to be forcibly
exacted. Acting upon this advice, au American
citizen refused to pay the contribution, and his
property was seized by urmed men to satisfy the
amount. Not content with this, the government
proceeded still further, and issued a decree ban
ishing him from the country. Our minister im
mediately notified them that if this decree should
be carried into execution be would feel it to be his
duty to adopt “the most decided measures that
belong to the powers and obligations of the re
presentative office. Notwithstanding this warn
ing, the banishment was enforced, and Mr. bor-
Byth promptly announced to the government the
suspension of the political relations of his lega
tion with them, until the pleasure of his own gov
ernment should be ascertained.
This government did not regard the contribution im
posed by the decree oldie 13th May last, to be in strict
ness a “forced loan,” and as such prohibited by the
10th article of the treaty of 1825 between Great Britain
and M xico, to the benefits of which American citizens
are entitled by treaty ; yet the imposition of the contrib
ution upon foreigners was considered an unjust and op
pressive measure Besides internal factions in other
parts of the republic were at the same time le - yine sim
ilar exactions upon the property ot our citizens, and in
terrupting 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, notwith
standing nis persevering efforts. And lrom the temper
manifested by the Mexican government, he had repeat
edly assured us that n<* favorable change could be expec
ted, until the U S should “gi e striking evidence of their
will and power to protect their citizens,” and that “se
vere chastening is the only early remedy for our griev
ances.” From this ntatement of facts, it would have
been worse than idle to direct Mr. Forsyth to retrace his
steps and resume diplomatic relations with that govern
ment ; and it was, therefore, deemed proper to sanction
Ills withdrawal of the legation from the city of Mex
ico.
Abundant cause now undoubtedly exists for a
resort to hostilities against tho governernment still
bolding possession of the capital. Should they
succeed in subduing the constitutional forces, all
reasonable hope will then have expired of a peace
ful settlement of our difficulties.
On the other hand, should the constitutinal
party prevail, and their authority be established
over the republic, there is a reason to hope that
they will be animated by a less unfriendly spirit
and may grant the redress to American citizens
which justice requires, so far as they possess the
means. liut for this expectation, I should at once
have recommended to Congress to grant the ne
cessary power to the President, to take possesion
of a sufficient portion of the remote and unsettled
territory of Mexico, to be held in pledge until our
injuries shall be redressed, and our just demands
be satisfied. We have already exhausted every
milder means of obtaining justice. In such 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 condi
tion of affairs along our Southwestern frontier,
which demands immediate action. In that re
mote region, where there are but few white
inhabitants, large bands of hostile and preda
tory Indians roam promiscuously over the
Mexican States of Chihuahua and Sonora, and
our adjoining Territories. The local govern
ments of these States arc perfectly helpless,
and are 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 com
mitting depredations on our remote settlers.
A state of anarchy and violence prevails
throughout that distant frontier. The laws
are a dead letter, and life and property are
wholly insecure. For this reason the settle
ment of Arizona is arrested, whilst it is of
great importance that a chain of inhabitants
should extend all along its southern bor
der, sufficient fur their erwn protection and
that of the United States mail passing to and
from California. Well f mndecl apprehensions
are now entertained, thfct the Indians, and
wandering Mexicans equally lawless, may
break up the important stage and postal com
munication recently established between our
Atlantic and Pacific possessions. This passes
very near to the Mexican boundary, through
out the whole length of Arizona. I can ima
gine no possible remedy for these evils, and
no mode of restoring law and order on that re
mote and unsettled frontier, but for the gov
ernment of the United States to assume a tem
porary protectorate over the northern portions
of Chihuahua and Sonora, and to establish
military posts within the same—and this I earn
estly recommend to Congress. This protec
tion may he withdrawn, as soon as local gov
ernments shall be established in these Mexi
can States, capable of performing their duties
to the United States, restraining the lawless
aud preserving peace along the border.
1 do not doubt that this measure will be view
ed in a friendly spirit bv the governments and
people of Chihuahua and Sonora, as it will
prove equally effectual for the protection of
their citizens on that remote and lawless fron
tier, as for citizens of the United States.
And in this connexion, permit me to recall
your attention to the condition of Arizona.
The population of that Territory, numbering,
as 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 com
mitted with impuniiy. This state of things
calls loudly for redress; and I, therefore, re
peat my recommendation for the establishment
of a territorial government over Arizona.
The political condition of the narrow isth
mus of Central America through which tran
sit routes pass, between the Atlantic and Pa
cific oceans, presents a subject of deep inter
est to all commercial nations. It is over these
transits, that a large proportion of the trade
and travel between the European and Asiatic
continents, is destined to pass. To the United
States these routes are of incalculable impor
tance, as a means of communication between
their Atlantic and Pacific possessions. The
latter now extend throughout seventeen de
grees of latitude on the Pacific coast, embra
cing the important State of California and the
flourishing Territories of Oregon and Wash
ington. All commercial nations, therefore,
have a deep and direct interest, that these
communications shall be rendered secure from
interruption. If an arm of the sea, connect
ing the two oceans, nenetrated through Nica
ragua and Costa Rica, it could not be pretend
ed that these States ‘would have the right to
arrest or retard its navigation, to the injury of
other nations. The transit by land over this
narrow isthmus, occupies nearly the same po
sition. It is a highway in which they them
selves have little interest, when compared with
the vast interests of the rest of the world
Whilst their rights of sovereignty might to be
respected, it is the duty of other nations to re
quire, that this important passage shall not be
interrupted, by the civil wars and revolutiona
ry outbreaks, which have so frequently occur
red in that region. The stake is too important,
to be left at the mercy ot rival companies,
claiming to hold conflicting contracts with Nic
aragua. 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 tins, and
they will not be satisfied with less. They
would not, if they could, derive any advantace
from the Nicaragua transit, not common to the
rest of the world. Its neutrality and protec
tion, for the common use of a 1 nations, is their
only object. They have no objection that Ni
caragua shall demand and receive a fair com
pensation, from the companies and individuals
who may traverse the route; but they insist
that it shall never hereafter be closed, by an
arbitrary decroe of that government. If dis
putes arise between it and those with whom
they may have entered into contracts, these
must be adjusted by some fair tribunal provid
ed for the purpose, and the route must not be
ttlosod pending the controversy. Thie is our
j whole policy, and it cannot fail to be accept a
: ble to other nations.
i All these difficulties might be avoided, if,
I consistently with the good faith of Nicaragua,
the use of this transit could be thrown open to
general competttion; providing at the sgme
time for the payment of a reasonable rate to
the Nicaraguan government, on passengers
and freight.
In August, 1852, the Accessory Transit
! Company made its first interoceanie trip over
j the Nicarguan route, and continued in suecess
! ful operation, with great advantage to the pub
| lie, until the 18th February, 1650, when it was
closed, and the grant to this company, as well
as its charter, were summarily and arbitrarily
revoked by the government of President Ri
vas. Previous to this date, however, in 1654,
serious disputes concerning the settlement of
their accounts had arisen between the compa
ny and the government, threatening the inter*
ruption of the route at any moment. These
the United States in vain endeavored to com
pose. It wouid be useless to narrate the vari
ous proceedings which took place between the
parties, up till the time when the transit was
discontinued. Suffice it to say that, since
February, 1850, it has remained closed, great
ly to the prejudice of citizens of the United
States. Since that time the competition has
ce sed between the rival routes of Panama
and Nicaragua, and, in consequence thereof,
an unjust and unreasonable amount has been
exacted from our citizens for their passage to
and from California.
A treaty was signed on the 10th day’ of No
vember, 1857, by the Secretary of State and
minister of Nicaragua, under the stipulations
of which the use and protection of the transit
route wouid have been secured, not only to
the United States, but equally to all other na
tions. How and on what pretexts this treaty
has failed to receive the ratification of the Ni
caraguan government, will appear by the pa
pers herewith communicated from the State
Department. The principal objection seems
to have been, to the 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 gov
ernment, and its constant internal dissensions,
this had become a most important stipulation,
and one essentially necessary’ not only for the
security of the route, but for the safety of
American citizens passing and repassing to
and from our Pacific possessions. Were such
a stipulation embraced in a treaty between the
United States and Nicaragua, the knowledge
of .his fact would of itself most probably pre
vent hostile parties from committing aggres
sions on the route, and render our actual in
terference for its protection unnecessary.
The executive government of this country,
in its intercourse with foreign nations, is limit
ed to the employment of diplomacy alone.
When this fails, it can proceed no further. It
cannot legitimately resort to force, without the
direct authority of Congress, except in resist
ing and repelling hostile attacks. It would
have no authority to enter the territories of
Nicaragua, even to prevent the destruction of
the transit, and protect the lives and properly
of our own citizens on their passage. It is
true, that on a sudden emergency of this char
acter, the President would direct any armed
force in the vicinity to march to their relief;
but in doing this he would act upon his own
responsibility.
Under these circumstances, I earnestly re
commend to Congress, the passage of an act
authorizing the President, under such restric
tions as they may deem proper, to employ the
land and naval forces of the United States in
preventing the transit from being obstructed
or closed by lawless violence, and in protect
ing the lives and property of Ameiicau citizens
travelling thereupon, requiring at the same
time that these forces shall be withdrawn the
moment the danger shall have passed away.
Without such a provision, oj*r citizens will be
constantly exposed to interruption in their
progress, and to lawless violence.
A similar necessity exists for the passage of
such an act, for the protection of the Panama
and Tehuantepec routes.
In reference to the Panama route, the United
States, by their existing treaty with New Gra
nada, expressly guarantee the neutrality of the
Isthmus, “with the view that the free transit
from the one to the other sea may not be in
terrupted or embarrassed in any future time
while this treaty exists.”
In regard to the Tehuantepec route, which
has been recently opened under the most fa
vorable auspices, our treaty with Mexico of
the 30th December, 1853, secures to the citi
zens ol the Unitedi States a right of transit
over it for their persons and merchandise, and
stipulates that neither government shall “in
terpose any obstacle” thereto. It also con
cedes to the United States the “right to trans
port across the Isthmus, in closed bags, the
mails of the United States not intended for
distribution along the line of the communica
tion ; also, the effects of the United States gov
ernment and its citizens which may be intend
ed for transit, and not for distribution on the
Isthmus, free of custom-house orother charges
by the Mexican government.”
These treaty stipulations with New Grana
da and Mexico, in addition to the considera
tions applicable to the Nicaragua route, seem
to require legislation for the purpose of car
rying them into effect.
The injuries which have been inflicted upon
our citizens in Costa Rica and Nicaragua, du
ring the last two or three years, have received
the prompt attention of this government. Some
of these injuries were of the most aggravated
character. The transaction at Virgin Bay, in
April, 1856, when a company of unarmed
Americans, who were in no way connected
with any belligerent ‘conductor or party, were
fired upon by the troops of Costa Rica, and
numbers of them killed and wounded, was
brought to the knowledge of Congress by my
predecessor soon after its occurrence, and was
also presented to the government of Costa Ri
ca,! for that immediate investigation and re
dress which the nature of the case demanded.
A similar course was pursued with reference
to other outrages in these countries, some of
which were hardly less aggravated in their
character than the transaction at Virgin Bay.
At the time, however, when our present min
ister to Nicaragua was appointed, in Decem
ber, 1857, no redress had been obtained tor any
of these wrongs, and no reply e-ven had been
received to the demands which had beenmade
by this government upon that of Costa Rica
more than a year before. Our minister was
instructed, therefore, to lose no time in ex
pressing to those governments the deep regret
with which the President had witnessed this
inattention to the just claims of the United
States, and in demanding their prompt and
satisfactory adjustment. Unless this demand
shall be satisfactorily complied with at an ear
ly day, it will only remain for this government
to adopt such measures as may be necessary,
injorder to obtain for itself that justice which
it has in vain attempted to secure by peaceful
means, from the governments of Nicaragua
and Costa Rica. While it has shown, and will
continue to show, the most sincere regard for
the rights and honor of these republics, it can
not permit this regard to be met by an utter
neglect, on their part, of what is due to the
government and citizens of the United States.
Against New Granada we have long-stand
ing causes of complaint, arising out of the
unsatisfied 4 claims of our citizens upon that
republic ; and to these have been more recent
ly added the outrages committed upon citizens
at Panama in April, 1856. A treaty for the ad
justment of these diliiculties was concluded
by the Secretary of State, and the minister of
New Granada, in September, 1857, which con
tained just and acceptable provisions for that
purpose. This treaty was transmitted to 80.
. gota, and was ratified by the government of
New Granada, but with certain amendments.
It “as not, however, returned to this city un
til alter the close of the last session ofthe Sen
ate. It will be immediately transmitted to that
body tor their advice and consent; and should
this be obtained, it will remove all our exist
ing causes of complaint against New Granada
on the subject cf claims.
Questions have arisen between the two gov
ernments as to the right of New Granada to
levy a tonnage duty upon the vessels-of the
United States in its ports of the Isthmus, and
to levy a passenger tax upon our citizens ar
riving in that country, whether with a design
to remain there or to pass from ocean to ocean
by the transit route; and also a tax upon the
mail of the United States transported over the
Panama railroad. The government of New
Granada has been informed that the United
States would consider the collection of either
of these taxes as an act in violation of the
treaty between the two countries, and as such
would be resisted by the United States. At
the same time, we are prepared to discuss
these questions in a spirit of amity and jus
tice, and with a sincere desire to adjust them
in a satisfactory manner. A negotiation for
that purpose has already been commenced. No
effort has recently been made to collect these
taxes, nor is any anticipated under present cir
cumstances.
1 With the empire of Brazil our relations are
of the most friendly character. The produc
tions of the two countries, and especially those
of an agricultural nature, are such as to invite
extensive mutual exchanges. A large quanti
ty of American flour is consumed in Brazil;
whilst more than treble the amount in value
of Brazilian coffee is consumed in the United
States. Whilst this is the case, a heavy duty
has been levied, until very recently, upon the
importation of American Hour into Brazil. I
am gratified, however, to be able to inform you
that in September last this has been reduced
from $1.32 to about forty-nine cents per barrel,
and the duties on other aricles of our produc
tion have been diminished in nearly the same
proportion.
I regret to stale that the government of-Bra
zil still continues to levy an export duty ol
about 11 per cent, on coflee, notwithstanding
this article is admitted free from duty in the
United States. This is a lieav charge upon
the consumers of coffee in our country', as we
purchase half of the entire surplus crop of
that article raised in Brazil. Our minister, un
der instructions, will reiterate his efforts to
have this export duty removed ; and it is hop
ed that the enlightened government of tile
Emperor will adopt this wise, just, and equal
policy. In th l event, there is good reason to
believe that i ;e commerce between the two
countries wi l greatly increase, much to the
advantage of both.
The claims of our citizens against the gov
ernment of Brazil are not, in the aggregate, of
very large amount; but some of these rest up
on plain principles of justice, and their settle
ment ought not to be longer delayed. A re
newed and earnest, and I trust a successful
effort, will be made by our minister to procure
their final adjustment.
On the 2d of June last, Congress passed a
joint resolution authorizing the President “to
adopt such measures and use such force as,
in his judgment, may be necessary and advisa
ble” “ for the purpose of adjusting the differ
ences between the United States and the re
public of Paraguay, in connection with the
attack on the United States steamer Water
Witch, and with other measures referred to”
in his annual message. And on the 12th July
following, they made an appropriation to de
fray the expenses and compensation of a com
missioner to that republic, should the Presi
dent deem it proper to make such an agpoint
meut.
In compliance with these enactments, I have
appointed a commissioner, who has proceed
ed to Paraguay, with full powers and instruc
tions to settle these differences in an amica
ble and peaceful manner, ifthisbe practicable.
His experience and discretion justify the hope,
that he may prove successful in convincing
the Parrguayan government,that it is due both
! to honor and justice, that they should volunta
| rily and promptly make atonement for the
! wrongs which they have committed against
j the United States, and ('indemnify our injured
; citizens whom they have forcibly despoiled of
: their property.
i Should our commissioner prove unsuccess
ful, after a sincere and earnest effort, to ac
complish the object of his mission, then no al
ternative will remain, but the employment of
force to obtain “just satisfaction” from Para
guay. In view of this contingency, the Secy of
the Navy, under my direction, has fitted out
and despatched a naval force, to rendezvous
near Buenos Ayres, which, it is believed, will
prove sufficient for the occasion. It is my ear
nest desire, however, that it may not be found
necessary to resort to this last alternative.
When Congress met in December last, the
business of the country had just been crushed
by one ot those periodical revulsions which
are the inevitable consequence of our unsound
and extravagant system of bank credits and
inflated currency. With all the elements of
national wealth iri abundance, our manufac
tures were suspended, our useful public and
private enterprises were arrested, and thou
sands of laborers were deprived of employ
ment and reduced to want. Universal distress
prevailed among the commercial, manufactu
ring, and mechanical classes. This revulsion
was felt the more severely in the United States,
becanse similar eases had produced the like
deplorable effects throughout the commercial
nations of Europe. All were experieneinff
sad reverses at the same moment. Our mam
ufacturers everywhere suffered severely, not
because of the reduction in the tarifl'of duties
on imports, but because there was no demand
at any price for their productions. The peo
ple were obliged to restrict themselves, in
their purchases, to articles of prime necessity.
In the general prostration of business, the iron
manufacturers indifferent States probably suf
fered more than any other class, and much
destitution was the inevitable consequence
among the great number of workmen who
had been employed in this useful branch of
our industry. There could be no supply where
there was no demand.
To present an example, there could be no
demand for railroad iron, after our magnificent
system of railroads, extending its benefits to
every portion of the Union, had been brought
to a dead pause. The same consequence have
resulted lrom similar causes to many other
branches of useful manufactures. It is self
evident that where there is no ability to pur
chase manufactured articles, these cannot be
sold, and consequently must cease to be pro
duced.
No government, and especially a govern
ment of such limited powers as that ofthe Uni
ted States, could have prevented the late re
vulsion. The whole commercial world seem
ed for years to have been rushing to this cat
astrophe. The same ruinous conseqences
would have followed in the United States
whether the duties upon foreign imports had
remained as they were under the tariff of 1846
or had been raised to a much higher standard.
Hie tariff'd 1857 had no agency in the result.
The general causes existing throughout the
world, could not have been controlled by the
legislation of any particular country.
The periodical revulsions which have exist
ed in our past history, must continue to return
so long as our present, unbound
ed system of bank credits shall prevail. They
will, however, probably be less severe in future;
because it is not to be expected, at least for ma
ny years to come, that the commercial nations
of Europe, with whose interests our own are
so materially involved, will expose themselves
to similar calamities. But this subject was
treated so much at large in my last annual
message that I shall not now pursue it further.
Still I respectfully renew the recommenda
tion in favor of the passage of a uniform bank
rupt law, applicable to banking institutions.
This is all the power over the subject which*
I believe, the federal government possesses!
Such a law would mitigate, though it might
not prevent the evil. The instinct of self-pres
ervation might produce a wholesome restraint
upon their banking business, if they knew in
advance, that a suspension of specie payments
would inevitably produce their civil death.
But the effects of the revulsion are now
slowly but surely passing away. The energy
and enterprise of our citizens, with our un
bounded resources, will within the period of
another year, restore a state of wholesome in
dustry and trade. Capital has again accumu
lated in our large cities. The rate of intcres
is there very low. Confidence is gradually re
viving, and so soon as it is discovered that this
capital can be profitably employed in commer
cial and manufacturing enterprise, and in the
construction of railroads and other works ot
public and private improvement, prosperity
will again smile throughout the land. It is
vain, however, to disguise the fact lrom our
selves, that a speculative inflation of our cur
rency, without a corresponding inflation in oth
er countries Whose manufactures come into
competition with our own, must ever produce
disastrous results to our domestic manufac
tures. No tariff, short of absolute prohibition,
can prevent these evil consequences.
In connection with this subject, it is proper
to refer to our financial condition. The same
causes which have produced pecuniary dis
tress throughout the country, have so reduced
the amount of imports from foreign countries,
that the revenue has proved inadequate to
meet the necessary expenses of the govern
ment To supply the deficiency, Congress, by
the act of the 23d of December. 1657, author
ized the issue of $20,000,00(1 of treasury note*;
and. this proving inadequate, they authorized,
by the act of June 14th, ISSS, a loan ot 6—0,-
000,000, “to be applied to the payment of ap
propriations made by law.”
No statesman would advise, that we should
go on increasing the national debt to meet the
ordinary expenses of the government. This
would ‘be a most ruinous policy. In case of
war, our credit must be our chief resource, at
least for the first year, and this would be great
ly impaired by having contracted a large debt
in time of peace. It is our true policy, to in
crease our revenue so as to equal our expen
ditures. Tt would be ruinous 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 extent, increase the confidence of the
manufacturing interests, and give a fresh im
pulse to our reviving business. To this, sure
ly. no person will object.
In regard to the mode of assessing and col
lecting duties under a strictly revenue tariff,
I have long entertained and often expressed
the opinion, that sound policy requires this
should be done by specific duties, in cases to
which these can be properly applied. They
are well adapted to commodities which are
usually sold by weight or by measure, and
which, from their nature, are of nearly equal
value. Such, for example, are the articles of
iron of different classes, raw sugar, and foreign
wines and spirits.
In my deliberate judgment, specific duties
are the best, if not the only means of securing
the revenue against false and fraudulent in
voices, and such has been the practice adopt
ed for this purpose by other commercial na
tions. Besides, specific duties would afford to
the Americah manufacturer the incidental ad
vantages to which he is fairly entitled under a
revenue tariff The present system is a sli
ding scale to his disadvantage. Under it,
when prices are high and business prosperous,
the duties rise in amount when lie least re
quires their aid. On the contrary, when pri
ces fall, and he is struggling against adversity,
the duties are diminished in the same propor
tion, greatly to his injury.
Neither would there be danger that a high
er rate of duty than that intended by Congress,
could be levied in the form of specific duties.
It would be easy to ascertain the average val
ue of any imported article for a series of years:
and, instead of subjecting it to an ad valorem
duty at a certain rate per centum, to substi
tute in its place an equivalent specific duty.
By such an arrangement the consumer would
not be injured It is true, he might have to
pay a little more duty on a given article in one
year; but if so, he would pay a little less in
another, and in a series of years these would
counterbalance each other, and amount to the
same thing, so far as his interest is concerned.
This inconvenience would be trilling, when
contrasted with the additional security thus
afforded against frauds upon the revenue, in
which every consumer is directly interested.
I have thrown out these suggestions as the
fruit of my own observation, to which Con
gress, in their better judgment, will give such
weight as they may justly deserve.
The report of the Secretary of the Treasury
will explain in detail the operations of that de
partment of the government. The receipts
into the treasury from all sources during the
fiscal year ending 30th June 185S, including
the treasury notes authorized by the act of De
cember 23, 1857, were $70,273,669 50, which
amount, with the balance of $17,710,114 27,
remaining in the treasury at the commence
ment of the year, made an aggregate for the
service of the year of $87,983,983 86.
The public expenditures during the fiscal
year, ending June 30, 1858, amounted to $Bl,-
585,667 76, of which $9,684,537 99 were ap
plied to the payment of the public debt, and
the redemption oftreasury notes, with the in
terest thereon, leaving in the treasury, on Ju
ly 1, 1858, being the commencement of the
present fiscal year, $6,393,316 10.
The receipts into the treasury, during the
first quarter oi the present fiscal year, com
mencing the Ist July, 1858, including one-half
of the loan of twenty millions of dollars, with
the premium upon it, authorized by the act of
14th June, 1858, were $25,230,879 *46, and the
estimated receipts, for the remaining three
quarters, to the3oth June, 1859, from ordinary
sources, are $38,500,000; making, with the
balance before stated, an aggregate of $70,-
120,195,56.
The expenditures during the first quarter of
the present fiscal year, were $21,708,198 54, of
which $1,010,142 37 were applied to the pay
ment of the public debt, and the redemption of
treasury notes and the interest thereon. The
estimated expenditures, during the remaining
three quarters, to the 30th June, 1859, are $52,-
357,698 48, making an aggregate of $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 $3,936,701 43. Extraordi
nary means are placed by law within the com
mand of the Secretary of the Treasury, by the
re-issue of treasury notes redeemed, and by
negotiating the balance of jhe loan authorized
by the act of 14th June, 1858, to the extent of
eleven millions of dollars, which if realized
during the present fiscal year, will leave a bal
ance in the treasury, on the first day of July,
1859, of $7,063,298 57.
The estimated receipts during the next fis
cal year, ending 30th June, 1860, are $62,000,-
000, which, with the above estimated balance
of $7,063,293, 298 57, make an aggregate for
the service of the next fiscal year, of $69,063,
298 50. The estimated expenditures during
the next fiscal year ending 30th June, 1860,
are $73,139,147 46, which leave a deficit of es
timated means, compared with the estimated
expenditures for that year, commencing on
the Ist of July, 1859, of $4,075,848 89.
In addition to this sum, the Postmaster Gen
eral will require from the treasury, for the
service of the Postoffice Department, $3,838,-
728, as explained in the report of the Secreta
ry of the Treasury, which will increase the es
timated deficit on the 30th June, 1860, to $7,-
914,570 89. To provide for the payment of
this estimated deficiency, which will be in
creased by such appropriations as may be
made by Congress, not estimated for in the
report of the Treasury Department, as well as
to provide for the gradual redemption, from
year to year, of the outstandingtreasury notes,
the Secretary ol the Treasury recommends
such a revision of the present tariff as will
raise the required amount. After what I have
already said, I need scarcely add that I con
cur in the opinion expressed in his report—
that the public debt should not be increased
by an additional loan, and would therefore
strongly urge upon Congress the duty of ma
king. at their present session, the necessary
provision for meeting these liabilities.
The public debt on the Ist July, 1858, the
commencement of the present fiscal year, was
$25,155,977 66-
During the first quarter of the present year the sum
.of 810,000,000 has been negotiated of the loan autho
thoruod by the aet of 14th June, 1848—waking the
present outstanding public^
23, 1857, unredeemed, the date> #54,.
mo n/r 1 %o Ct th a is l vvffi added 6 10,00 ),000 du
-010,777.06. To this ,j i9 being the remaining
ring the present fiscaTyear-jh
half of the loan of2o,<Wo,oOOn_t > a ? ld , be neces-
The rapid increase 01 P , of the tariff,lo meet
9 ity which exists for a modih t government ought
even the ordinary expenses g S p b ere9 of duty,
to admonish us all, m our respecu > f ... f ex .
to the practice of rigid economy. The objects m
the C ^ctesVaccount^bili t ty OU Enlightened economy does
areas and prosperity of the republic, but m taking care
fhat none of the money shall be wasted by mtsmanage-
SK application to the objects designated by
la ComDarisons between the annual expenditure at the
nresent time and what it was ten or twenty years ago,
are altogether fallacious. The rapid increase of our
count extent and population, renders a correspon
ding increase of expenditure, to some extent, unavoid
able. This is constantly creatiug new objects ot ex
penditure,and augmenting the amount required for tne
old. The true questions then, are, have these objects
been unnecessarily multiplied, or, has the amount ex
pended upon any or all of them, been larger than com
ports with due economy! In accordance witli tliee
principles, the heads of the different executive depart
ments ofthe government have been instructed to re
duce their estimates for the next fiscal year, to the low
est standard consistent with the efficiency ot the ser
vice, and this duty they have performed in a spirit of
just economy. The estimates of the Treasury, v\ ar,
Navy, and Interior Departments, have each been in
some degree reduced, and unless a sudden and unfore
seen emergency should arise, it is not anticipated that
a deficiency will exist in either within the present or
the next fiscal year. The Post Office Department is
placed in a peculiar position, different from the other
departments, and to this I shall hereafter refer.
I invite Congress to institute a rigid scrutiny to as
certain whether the expenses in all the departments
cannot be still further reduced; and I promise them all
the aid in my power in pursuing the investigations.
I transmit herewith the reports made to me by the
Secretaries of War, ofthe Navy, ot the Interior, and
ofthe PostmosterGeneral. They each contain valua
ble information and important recommendations, to
which I invite the attention of Congress.
111 my last annual message, l took occasion to re
commend the immediate construction of ten small
steamers, of light draught, for the purpose of increas
ing the efficiency ofthe navy. Congress responded to
the recommendation by authorizing the construction ot
eight of them. The progress which has been made in
executing this authority, is stated in the repoit ot the
Secretary ofthe Navy. I concur with him in the opin
ion that a greater number of this class of vessels is
necessary for the purpose of protecting in a more effi
cient manner the persons and property of American
cititzens on the high seas, and in foreign countries, as
well as in guarding more effectually our own coast. I
accordingly recommend the passage of an act for this
purpose. , ,
The suggestions contained in the report ot the sec
retary of the Interior, especially those in regard to the
disposition of the public domiai’n.the pension and boun
ty land system, the policy towards the Indians, and the
amendment of our patent laws, are worthy of the se
rious consideration of Congress.
The Post Office Department occupies a position ve
ry different from that of the other departments. For
many years it was the policy ofthe government to ren
der this a self-sustaining department; and if this can
not now he accomplished, in the present condition ot
the country, we ought to make as near an approach to
it as may be practicable:
The Postmaster General is placed in a most embar
rassing position by the existing laws. lie is obliged to
carry these into effect. He has no other alternative. —
He finds, however, that this cannot be done without
heavy demands upon the treasury over and above
w T hat is received for postage; and these have been pro
gressively increasing from year to year until they
amounted for'the last fiscal year ending on the 30th
June, 1858, to'more than four millions and a half of
dollars; w hilst it is estimated that for the present fiscal
year they will amount to $6,290,000. These sums arc
exclusive of the annual appropriation of 8700,000 for
“compensation for the mail service performed for the
two houses of Congress, and the other departments and
officers ofthe government in the transportation of free
matter.”
The cause of these large deficits is mainly attributable
to the increased expense of transporting the mails —
In 1852 the sum paid for this service was but a fraction
above four millions and a quarter. Since that year it
has annually increased until in 1858 it lias reached
more than eight millions and a quarter; and for ihe ser
vice of 1859, it is estimated that it will amount to more
than ten millions of dollars.
The receipts of the post office Department can be
made to approach or to equal its expenditure, only by
means of the legislation of Congress. In applying any
remedy, care should be taken that the people shall
not be deprived ofthe advantages, which they are fair
ly entitled to enjoy from the Post Offiee Department
The principal remedies recommended to the consider
ation of Congress by tbe Postmaster General, are to
restore the former rate of postage upon single letters
to five cents; to substitute for the franking privilege the
delivery to those now entitled to enjoy it, of post office
stamps for their correspondence, and to direct the De
partment, in making contracts for the transpor
tation of the mail, to confine itself to the payment of
the sum necessary for this single purpose without re
quiring it to be transported in post coaches or carriages
of any particular description. Under the present sys
tem. the expense to the government is greatly increas
ed, by requiring that the mail shall be carried in such
vehicles as will accommodate passengers. This will
be done without pay from the department, over ali
roads where the travel will remunerate the contractors.
These rec ommendations deserve the grave consider
ation of Congress.
I would again call your attention to the construction
of the Pacific Railroad. Time am! reflection have but
served to confirm me in the truth and justice of the ob
servations which I made, on this subject, in my last an
nual message, to which 1 beg leave respectfully to re
fer.
It is freely admitted, that it would be inexpedient for
this govermvent to exercise the power “of constructing
the Pacific Railroad by its own immediate agents. Such
a policy would increase the partonage of the executive
to a dangerous extent, and introduce a system of job
bing and corruption, which no vigilance oh the part of
the federal officials could either prevent or detect. This
can only be done by the keen eye, and active and care
ful supervision of individual interest. The construc
tion of this road ought, therefore, to be committed to
companies incorporated by the States, or other agen
cies whose pecuniary interests would be directly invol
ved. Congress might often assist them in the work bv
grants of land or money, or both, under such conditions
and restrictions as would secure the transportatim of
troops and munitions of war free from any charge, and
that of_, tlie United States mail at a fair and leasona
bie price.
The progress of events since the commencement of
your last session, has shown how soon difficulties dis
appear before a [firm and determined resolution. At
that time 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 mountains and
deserts in the way, were obstacles which, in the opin
ion of many, could not be surmounted. Now, after
ter the lapse of but a single year, these obstacles it has
been discovered, are far less formidable than they were
supposed to be; and mail stages, with passengers,now
pass and repass regularly, tiwee a week, bv a common
wagon road between San Francisco and St. Louis and
Memphis, in less than twenty five days. The service
has been as regularly performed, as it was in former
years, between New York and this city.
Whilst disclaiming all authority to appropriate mo
ney for the construction of this road, except that deriv
ed from the war-making power of the constitution,
there are important collateral considerations urging us
to undertake the work as speedily as possible.
Tiie first and most momentous of these is, that such
a road would be a powerful bond of union between the
States east and west of the Rocky Mountains. This
is so self-evident as to require no illustration.
But again, in a commercial point of view, 1 consid
er this the great question of the day. With the east
ern front of our republic stretching along the Atlantic,
and its western front along the Pacific, if all the parts
should be united by a safe, easy and rapid intercommuni
cation, we must necessarily command a very large pro
portion of the trade both of Europe and Asia. Our re
cent treaties with China and Japan will open there
rich and populous empires to our commerce ; and the
histry o fthe world proves,that the nation which has gain
cd possession of the trade with eastern Asia, has always
become wealthy and powerful. The peculiar geograph
ical position of California and our Pacific possessions,
invites American capital and enterprise into this fruit
ful 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 through
out every portion of 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 heats 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, ofthe
United States brig Dolphin, captured the slaver ‘Echo,’
(formerly the Putnam of New Orleans.) near Key Ver
de, on the coast of Cuba, with more than three hun
dred African negroes on board. The prize, under the
commandof Lieut Bradford of the United States navy,
arrived at Charleston on the 27th of August; when the
negroes, three hundred and Six in number, were deliv
ered into the custody of the United States marshal for
the district of South Carolina. They were first placed
in Castle Pinckney, and afterwards in Fort Sumter, for
safe-keeping, and were detained there until the 19th
September, when the survivors, two hundred and sev
enty-one in number, were delivered on board the Uni
ted States steamer Niagara, to be transported to the
coast of Africa, under the charge ofthe agent ofthe U.
States, pursuant to the provisions of the act of 3d
March, 1819 “in addition to the acts prohibiting the
slave trade.” Under the 2d section of this act, the
President is “authoriaed to make such regulations and
arrangements as he may deem expedient, for the safe
keeping support, and removal beyond the limits ofthe
United States, of all such negroes, mulattoes, or per
sons of color” captured by vessels of the United
States, as may be delivered to the marshal of the dis
trict into which they are brought | “and to appoint a
propw penon or parson* residing os the eoegt of Afries,
aa agent or agenta for reviving the nr ru( .„
toes, or parsons of color, delivered from *n 1 ’
sels seized in the prosecution ofthe slave i, H y ard v <a.
intruders of the U o, aimed vesstna.” °' v 'ycoi u ,
A doubt immediately aroee as 10 the t rU( . , Q
ol'this a.t. It is clear from its terms that the p rUclio H
was authorized to provide “for the sale r * 3i <feiit
port, and removal” of those negroes up ; iii'ti
their delivery to the agent on the r oast of a, • if
no express provision was made for their p| ( ,i
support atter they had reached ihe place of ill”
nation. Still, an agent was to beapoointed 1
them in Africa; and it could not have been ‘ ri
that Congress intended he should desert ua- ’*
moment they were received, and turn theiu 1 “ t l “
that inhospitable cast to perish for want off, ,J 2
become again the victims of the slave trade |j’° r lo
been the intention of Congresss, the employ L„ and
agent to receive them, who is required m resi(J ‘ 0: ar t
coast, was unnecessary, and liiey n.inf.t t . 0R the
landed by our vessels anywhere in Airica anil ”***
posed to the suffering ami the fate which ivrmirf*’
tainly await them. ,u ‘ u c.
Mr. Monroe, in his special message of 17 r> P .
1819, at the first session after the act was passH*
nounced to Congress what, in his opinion, vvas'i-c’ a "’
const ruction- He believed hto be iris duty umi. ■ irue
follow these unfortunates inio Africa, and mat’ 10
vision for them there, untilthey should be a bu.! pi "’
vide for themselves. we,o lro-
In communicating this interpretation 0 f t | le
Congress, he stated that some doubt bad |, eei . 10
tained as to its true intent and meaning, and iJ 11 , J*
nutted the question to them, so that they niH t l;: ”
it be deemed advisable, amend the same before pf.? 1,1
proceedings are had under it. ” Nothing was ‘h ( „, ,
Congress to explain the act.and Mr. Monroe m, M
to carry it into execution according to i,j s , „ ‘p ili
tation. * This, then, became the practical cuustiu
When the Africans from on board the Echo V r i
livered to the marshal at Charleston, it became ’ ‘ le ’
to consider what disposition ought to be i Ji:i <t.., r ‘
under tiie law. For many reasons, ii wiih ‘
to remove them from that locaiitv as speedily • ‘
ble. Although the conduct ofthe authorities Za
zmis of Charleston, in giving countenance to u,J e V !I1 ’
tion ot the law, was just what might iiav<- b.-.-n ,‘v ‘
ted from their high character, yet a prolonged cmT’
uance of three hundred Africans in the innuediat?
unity of that city, could not have failed to bei,
source of inconvenience and anxiety to its inhabit™.*
V\ here to send them, was the question. There v,i,
portion ofthe coast of Africa, to which hey could’
removed with any regard to lmmanity.texbept t<!
bena. Under these circumstances, an agreement ,
entered into with the Colonization Society on the'o
• f . September last, a copy of which is herewith hair
nutted, under which the Society engaged, for the
sidcration of forty-five thousand' dollars, to'receive
Africans in Liberia from Hie agent ofthe I nired s t ,
and furnish them during the period of one vear'ti
after, with comfortable shelter, clothing, provision’
and medical attendance, causing the children to r Cv
schooling ; and all, whether children or adults,
instructed in the arts of civilized life, suitable toY',
condition. This aggregate of forty five thousand
lars was based upon an allowance ot one hundred v
fifty dollars for each individual, and as there has 1,-,,,
considerable mortality among them, and may be nv
betore they reach Africa, the society have agreed in' Z
equitable spirit, to make such a deduction from Z
amount, as under the circumstances may appear
and reasonable. This cannot be fixed umil W( , 5 ,.”
ascertain the actual number which may become actin’ v
to the society.
It was also distinctly agreed, that, under no circnu,
stances, shall this government be called upon for) i
additional expenses.
The agents ofthe society manifested a laudable desire
to conform to the wishes of the government, ilireu m
out the transaction. They assured me that, after ;u ait-•
ftri calculation, they would tie required to expend tt,
sum of one hundred and fitly dollars 011 each individmVi
in complying with the agreement, and they would have
nothing left to remuneraie them for their care, troubb-.
and responsibility. At all events, I could make 110 bel
ter arrangement, and there was no other alternative
During the period when the government itself, through
its own agents, undertook the task of providing lor cap
tured negroes in Africa, the cust per head was very much
greater.
There having been no outstanding appropriation ap
plicable to this purpose, I could not advance any money
on the agreement. I therefore recommend that an ap
propriation may be made of the amount necessarv to
carry it into effect.
Other captures of a similar character-may, and prob
ably will, be made by our naval forces; and I earnestly
recommend, that Congress may amend the second sec
tion ofthe act of March 3, 1819. so as to free us con
struction from the ambiguity which lias so long exist*
ed, and render the duty ofthe President plain in exe
cuting its provisions.
1 recommend to your favorable regard the local im*r
ests of the District of Columbia. As the residence of
Congress and the exec utive departments of the govern
ment, we cannot tail to feel a deep concern in ns v.vl
fare. This is heightened by the high character and the
peaceful and orderly conduct of its resident inhabi
tants.
I cannot conclude without performing the agreeable
duty of expressing my gratification that Congress so
kindly responded to the recommendation of my lusi an
nual message, by affording me sufficient time, befu*
the close of their late session, tor the examination of
all the bills presented to me for approval. Tnis change
in the practice of Congress has proved to be a whole
some reform. It exerted a beneficial influence on lire
transaction of legislative business, and elicited the gen
eral approbation ofthe country. It enabled Congress
to adjourn with that dignity and deliberation so be
coming to the representatives of this great republic,
without having crowded into general appropriation bus
provisions foreign to their natures, and of doubtful con
stitutionality and expediency. Let me warmly aid
strongly commend this pre.cedent, established by them
selves, as a guide to their proceedings during tbe pat
ent session.
JAMES BUCHANAN
Washington City, Dec. 6, 1858.
COLUMBUS, FRIDAY. DECEMBER 10,lfoS.
The President's Message.
We present to our readers, to-day, the Message
of President Buchanan to Congress, which wa*
transmitted to both Houses on Monday last. In
order to give our readers the opportunity of a
isfactory perusal, we publish it entire, to the ex
clusion of all other matter. Our own comment?
are reserved for a future occasion. The subjects o!
which it treats are of commanding importance,
and wo trust it will receive an attentive and
thoughtful consideration.
Acknowledge n; en ts.
We feel under especial obligation to Capt. S. II
Hill, agent of Haruden’s Express, in this city, for
a copy of the President’s Message. The States,
(newspaper) will please accept our thanks for a
similar favor, in advance of our other Washington
cotemporaries. Wo are largely indebted, also, to
Mr. W. 11. Pritchard, Agent of the Associated
Press at Augusta, Da., for his repeated acts of
obligingness.
RHEUMATISM.
A case of three months standing cured.
(tkorge W. Henderson, of Pittsburgh, say :
“After suffering for three months with Rheuma
tim, a part of the time so severely as to confine
me to my bed, I have been entirely cured by using
Bcerbavc’s Holland Bitters. I have had one at
tack since, but found almost instantaneous relief
in the same medicine. It is in my opinion, a sure
remedy for Rheumatism.”
See Advertisement. Dec 6—lwdw.
think it is hardly known even to the
most intelligent of our readers, how deep some of
the sciences are looking down into the mysteries
of creation. We knew’ there were wonderful dis
coveries in these times, and wonderful uses made
of them, but did not know the Chemists were imi
tating in their crucibles and even surpassing the
most wonderful productions of organic life. Du
ring our visit to Lowell we were introduced by cue
of their prominent citizens to the laboratory of
Dr. Ayer, (inventor of CHERRY PECTORAL
and CATHARTIC PILLS,) where we were
shown with generous frankness, his processes and
his products. This master genius of his art is man
ufacturing the subtle essences of flowers from tar
and other vegetable substances. His essence of
Pine Apple, Strawberry, Checkerberry, Quince,
Pear, Canella, Cinnamon &c., not only equal but
they exceed in purity of flavor, those vegetables
themselves. His oil of Winter-green is purer and
of hotter flavor than any that can be gathered frem