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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