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I i ntKiSlUUX i 'rf AiKSSAG-L:. Fellmc-citizens of ike Senate and House of Repre- sentotires : When we compare the condition of the country at the present day with what it was one year ago, at the meeting of Congress, we have much reason for gratitude to that Almighty Providence, which has never failed to interpose for our relief, at the most critical periods of our history. One year agof the sectional strife between the North and the South on the dangerous subject of slavery, had again become so intense as to threaten the peace and perpetuity of the confederacy. The applica tion for the admission of Kansas as a State into the Union, fostered this unhappy agitation, and brought the whole subject once more before Con gress. It was the desire of every patriot that such measures of legislation might be adopted as would remove the excitement fW>in the States, and confine it to the Territory where it legitimately belonged. Much has been done, I am happy to say, towards the accomplishment of this object, during the last session of Congress. The Supreme Court of the United States had previously decided, that all American citizens have an equal right to take into the Territories, what ever is held as property under the laws of any of the States, and to hold such property there under the guardianship of the federal constitution, so long as the territorial condition shall remain. This is now a well-established position, and the proceedings of the last session were alone wanting to give it practical effect. The principle has been recognized, in sonic form or other, by an almost unanimous vote of both Houses of Congress, that a Territory has a right to come into the Union either as a free or a slave State, according to the will of a majority of its people. The just equality of all the States has thus been vindicated, and a fruitful source of dangerous dissension among them has bee* removed. Whilst such has been the beneficial tendency of your legislative proceedings outside of Kansas, their influence has nowhere been so happy as within that Territory itself. Left to manage and control its own affairs in its own way, without the pressure of external influence, the revolutionary Topeka organization and all resistance to the ter ritorial government establislied by Congress, have heen finally abandoned. As a natural consequence, that fine Territory now appears to be tranquil and , prosperous, and is attracting increasing thousands of immigrants to make it their happy home. The past unfortunate experience of Kansas has enforced the lesson so often already taught, that re sistance to .lawful authority, under our form of gov ernment, cannot fail in the end to prove disastrous to its authors. Had the people of the Territory yielded obedienee tc the laws enacted by their legislature, it would at the present moment have contained a large additional population of indus trious and enterprizing citizens, who have been de terred from entering its borders by the existence of civil strife and organized rebellion. It was the resistance to rightful authority and the persevering attempts to establish a revolution ary government under the Topeka constitution, which caused the people of Kansas to commit the grave error of refusing to vote for delegates to the convention to frame a constitution, under a law not denied to be fair and just in its provisions. This refusal to vote has been the prolific source of all the evils which have followed. In their hos tility to the territorial government, they disregard ed the principal absolutely essential to the work ing of our form of government, that a majority of those who vote—not the majority who may remain at home, from -whatever cause—must decide the result of an election. For this reason, seeking to take advantage of their own error, they denied the authority of the convention thus elected to frame a constitution. The convention, -notwithstanding, proceeded to adopt a constitution-unexceptionable in -its general features, and providing for the submission of the slavery question to a vote of the people, which in my opinion, -they were bound to do, under the Kansas and Nebraska act. This was the all-impor tant question which had alone convulsed the Terri tory; and yet the opponents of the lawful govern ment, persisting in their first error, refrained from exercising their right to vote and preferred that slavery should continue, rather than surrender ihtir .revolutionary Topeka organization. A Wiser and better spirit seemed to prevail be fore the first Monday of January last, when an election was held under the constitution. A ma jority of the people then voted for a governor and ether State officers, for a member of Congress, and members of the State Legislature. This election was warmly contested by the two political parties in Kansas, and a greater vote was polled than at any previous election. A large majority of the members of the Legislature elect belonged to that party which had previously refused to vote. The anti-slavery party were thus placed in the ascend ant, and the political power of the State was in their own hands. Had Congress admitted Kansas into the Union under the Lecompton constitution, tiie Legislature might, at its very first session, have submitted the question-to a vote of the peo ple, whether they would or would not have a con vention to amend their constitution, either on the slavery or any other question, and have adopted all necessary means for giving speedy effect to the will of the majority. Thus the Kansas question would bave been immediately and finally settled. Under these circumstances I submitted to Con gress the constitution thus framed, with all the offi cers already elected necessary to put the State gov ernment into operation, accompanied by a strong recommendation in favor of tho admission of Kan sas as a State. In the course of my long public life I have never performed any official act, which, in the retrospect, has afforded me more heartfelt satisfaction. Its admission could have inflicted no possible injury on any human being, whilst it would, within a brief period, have restored peace to Kansas and harmony, to the Union. In that event the slavery question would ere this have been finally settled, according to (he legally expressed will of a majority of the voters, and popular sov ereignty would thus have been vindicated in a constitutional manner. jut ifo- pituciplcs .-I popular sovereignly and non I intervention, have left “the mode and manner of ; its approv&i or ratification by the people of the j proposed Slate" to be “prescribed by law, and I they shall then be admitted into the Union as e State under such constitution thus fairly and le gally made, with or without slavery, as said con stitution may prescribe. An election was held throughout Kansas, in pur suance of the provisions of this act, on the second day of August last, and it resulted in the rejection, by a large majority, of the proposition submitted to the people by Congress. This being the case, they are now authorized to form another constitu tion, preparatory to admission into the Union, but not until their number, as ascertained by a census, shall equal or exceed the ratio required to elect a nieniber of the House of Representatives. It is not probable, in the present state of the case, that a third constitution can be lawfully framed and presented to Congress by Kansas, be fore its population shall have reached the designa ted number. Nor is it to be presumed that, after their sad experience in resisting the territorial laws, they will attempt to adopt a constitution in express violation of the provisions of an act of Congress. During the session of 1850, much of the time of Congress was occupied on the question of admitting Kansas under the Topeka constitu tion. Again, nearly the whole of the last session was devoted to the question of its admission un der the LecrAaptou constitution. Surely it is not unreasonable to require the people of Kansas to wait, before waking the third attempt, until the number of their inhabitants shall amount to nine ty-three thousand four hundred and twenty. Du ring this brief period the harmony of the States, as well as tlug great business interests of the country, demand that the people of the Union shall not for a third time he.convul.sed by another agitation on the Kansas question. By waiting fora short time, and acting in obedience to law, Kansas will glide into the Union without the slightest impediment. This excellent provision, which Congress have applied to Kansas, ought to be extended and ren dered applicable to all Territories which may here after seek admission into the Union. With my deep convictions of duty, I could have pursued no other course. It is true, that, as an in dividual, I had expressed an opinion, both before and during the session of the convention, in favor of submitting the remaining clauses of the consti tution, as .well .as that oenceming slavery, to the people. But, acting in an official character, neith er myself nor any human authority had the power forejudge the proceedings of the convention, and declare the constititution which it had framed to be a nullity. To iiave done this would have been a violation of the Kansas and Nebraska act, which left the people of the Territory “ perfectly free to form and regulate their domestic institutions in their own way. subject only to the constitution of the United States.” It would equally have viola ted the great principle of popular sovereignty, at the foundation of our institutions, to deprive the people of .the power, if they thought proper to ex ercise it, of eonfidingto delegates elected by them selves the trust.of framing a constitution, without requiring them to subject their constituents to the trouble,expense and delay of a second election.— It would have been in opposition to many prece dents in our history,.commencing in the very best age of the republic, of the admission of Territories as States into the Uoign, without a previous vote of the people approving their constitution. It is to be lamented that a question so insignifi cant when viewed ,iu its practical effects on the people «f Kansas, whether decided one way or the other, should have kindled such a flame of excite ment throughout the country. This reflection may prove to be a lessou of wisdom and of warn ing for our future guidance. Practically consider ed, .the .question is simply whether the people of that Territory should first come into the Union and then change any provision in their constitution not agreeable to themselves, or accomplish the very same object by remaining out of the Union and framing another constitution in accordance with their will. In either case, the result would be precisely the same. The only difference in point of tact is, that the object would have been much sooner attained, and the pacification of Kansas more speedily effected, had it been admitted as a State during the last session of Congress. My recommendation, however, for the immedi ate admission of Kansas, failed to,meet the appro bation of Congress. They deemed it wiser to adopt a^iifferent measure for the settlement of the questiofT For my own part. I -should have been willing to yield my assent to almost any constitu tional .measure.to accomplish this object. I, there fore. cordially acquiesced in what has been called the English Compromise, and approved the “ Act for the admission of the State of Kansas into the Union” upon the terms therein prescribed. •Under the ordinance which accompanied the Le- compton constitution, the people of Kansas had claimed double the quantity of public lands for the support of common schools, which had ever been previously granted to any State upon enter ing the Union; and also the alternate sections of land for twelve miles on.each side of two railroads, proposed to be constructed from the northern to the southern boundary, and from the eastern to the western boundary of the -State. Congress, deeming these claims unreasonable, provided, by the act of May 4,1858, to which J have just refer red, for the admission of the State on an equal footing with the original States, but “ upon the fundamental condition precedent” that a majority of the people thereof, At ah election to be held for that purpose, should, in place of the very large grants of public lands which they had demanded under the ordinance, accept such grants as had been made to Minnesota and other new States.— Under this act, should a minority reject the propo sition offered them," it shall be deemed and held that the people of Kansas do not desire admission “ lt0 fhe Union with said constitution under the conditions set forth in said proposition." In that event, the act authorizes the people of the Territo ry to elect delegates to form a constitution and , fJf” Ver ." n ? ent f° r themselves, “whenever, and lamllv »■W« t 1 ?. asce I taine d by a census, duly and 2J or^exceeda u! P .°P u,ati ? n of ““ Territory equals or exceeds the ratio . . .. j r , . . 10 oi representation re- nuired foramemberof the. Hou^ P ^R=” n ^ fives of the Congress of the United 8tatM.” Tiro delegates thus assembled “shall first a vote whether it is the wish of th c ‘of ill ftronnoiul flfaln Kn n/lmUtoJ i _ . i * _ ^ *116 proposed State to be admitted into the' U u f on that time, and, if so, shall proceed to form a con 1 stitotion, and take all necessary steps for the e«'- tabushment of a State Government in conformity with the federal constitution." After this ccnstf. ration shall have been formed, Congress, carrving Whilst Congress possess the undoubted power of admitting a new State into Abe Union, however small may be the number of its inhabitants, yet this power ought not, in my opinion, to he exer cised before the population shall amount to the ra tio required by the act for the admission of Kansas- Had this been previously the rule, the country would have escaped all the evils and misfortunes to which it has been exposed by the Kansas ques tion. Of course it.would be unjust to give this rule a prospective application, and exclude a State which, acting upon the past practice of the government, has already formed its constitution, elected its leg islature and other officers, and is now prepared to enter the Union. The rule ought to be adopted, whether we oon- sider its bearing on the people of the Teritoriesor upon the people of the existing States. Many of the serious dissensions which have prevailed in Congress and throughout the country, would hffve beer, avoided, had this rule been established at an earlier period of the government. Immediately upon the formation of a new Terri tory, people from different States and from foreign countries rush into it, for the luadabie purpose of improving their condition. Their first duty to themselves is to open and cultivate farms, to con struct roads, to establish schools, to erect places of religions worship, and to devote their energies gen erally to reclaim the wilderness and to lay the foundations of a flourishing and prosperous com monwealth. If. in this incipient condition, with a population of a few thousand, they should prema turely enter the Union, they are oppressed by the harden of State taxation, and the means necessary for the improvement of the Territory and the ad vancement of their own interests, are thus diverted to very different purposes. The federal government has ever been a liberal parent to the Territories, and a generous contri butor to the useful interprises of the early settlers. It has paid the expenses of their governments and legislative assemblies out of the common treasury, aud thus relieved them from a heavy charge. Un der these circumstances, nothing can he bttter cal culated tc, retard their material progress, than to divert them from their useful employments, by prematurely exciting angry political contests among themselves, for the benefit of aspiring lead ers. It is surely no hardship for embryc govern ors, senators, and members of Congress, to wait until the number of inhabitants shall equal those of a single Congressional district. They sure ly ought not to be permitted to rush into the Un ion, with a population less than one-half of several of the large counties in the interior of some of the States. This was the condition of Kansas when it made application to be admitted under the Topeka constitution. Besides, it requires some time to ren der the mass of a population collected in a new Ter ritory, at all hoinegeneous, and to unite them on anything like a fixed policy. Establish the rule, and ali will look forward to it and govern them selves accordingly, But justice to the people of the several States re quires that the rule should be established by Congress. Each State is entitled to two sen ators and at least one representative in Con gress. Should the people of the States fail to elect a Vice President, the power devolves upon the Senate to select this officer from the two high est on the list. In case of the death of the Presi dent, the Vice President thus elected by the Senate, becomes President of the United States. On all questions of legislation, the Senators from the smallest States of the Union have an equal vote with those from the largest. The same may be said in regard to the ratification of treaties, and of Executive appointments. All this has worked admirably in practice, whilst it conforms in princi ple with the character of a government instituted by sovereign States. I presume that no American citizen would, desire the slightest change in the ar rangement. Still, it is not unjust and unequal to the existing States to invest some forty or fifty thousand people collected in a Territory with the attributes of sovereignty, and place them on an equal footing with Virginia and New York in the Senate of the United-States ? For these reasons, I earnestly recommend the passage of a general act, which shall provide that upon the application of a Territorial legislature, declaring their belief that the Territory contain a number of inhabitants which., if in a State, would entitle them to elect a member to Congress, it shall be the duly of the President to cause a censns of the inhabitants to be taken, and if found sufficient, then by the terms of this act to authorize them to proceed “in their own way” to frame a State con stitution preparatory to admission into the Union. I also recoinmnd that an appropriation may be made to enable the President to take a census of the people of Kansas. The present condition of the Territory of Utah, when contrasted with what it was one year ago, is subject for congratulation. It was then in a state of open rebellion, and. cost what it might, thc char acter of the government required,that this rebellion should be suppressed and the Mormons compelled to yield obedience to the constitution and the laws. In order to accomplish this object, as I informed you in iny last annual message, I appointed a new Governor instead of Brigham Young, and oth er federal officers to take the place of those who, consulting their personal safety, had found it neces sary to withdraw from the Territory. To protect these civil officers, and to aid them, as a posse com- itatus, in execution of the laws in case of need, I ordered a detachment of the army to accompany them to Utah. The necessity for adapting these measures are now demonstiated. On the 15th of September, 1857, Gov. Young is sued his proclamation, .ill the style of an indepen dent sovereign, announcing his purpose to resist by force of arms the.entry of the United States troops into our own Territory of Utah. By this he required all the forces in the Territory, to “hold themselves in readiness to inarch at a moment’s notice to repel any and all such .invasion," and es tablished martial law from its date throughout the Territory. These proved to be no idle threats. Forts Bridger and Supply were vacated and burnt down by the Mormons, to deprive our troops of a shelter after their long and .fatiguing march. Or ders weie issued by Daniel H. Wells, styling him self “Lieutenant General, Nanvoo Legion,” to stampede the animals of the .United Stains troops on their inarch, to set fire to their trains, to burn the grass and the whole country before them and on their flanks, to keep them from sleeping by night surprises, and to blockade tlie road by felling trees, and destroying the fords of rivers, &c., &•;. These orders were promptly aud effectually obeyed. On the 4th October, 1857, the Mormons captured and burned on Green River, three of our supply trains, consisting of seventy-five wagons loaded with provisions and tents for the army, and carried away several hundred animals. This di minished the supply of provisions so materially that General Johnson was obliged .to xeduce the ra tion, and even with this precaution, there was only sufficient left to subsist the troops until the first of June. Our little army behaved admirably ; in their en campment at Fort Bridger, und,.r these trying pri vations. In the midst of the mountains, in a dreary, unsettled, and inhospitable region, more than a thousand miles from home, they passed the severe and inclement winter without a mnrmer. They looked forward with confidence for relief from their country in due season and in this they were not disappointed. The Secretary of War employed all his energies to forward them the necessary supplies, and to mus ter and send such a military force to Utah as would render resistance on the part of the Mormons hope less, and thus terminate the war without the effu sion of blood. In his efforts he was efficiently sus tained by Congress. They granted appropriations sufficient to cover the deficiency thus necessarily created, and also provided for raising two regiments of volunteers, “for the purpose of quelling distur bances in the Territory of Utah, for the protection of supply and emigrant trains, and the suppression of Indian hostilities on the frontiers." Happily, there was no occasion to call these regiments into serv ice. If there had been, I should have felt seri ous embarrassment in selecting them, so great was the number of our brave and patriotic citizens anx ious to serve their country in this distant and appa rently dangerous expedition. Thus It has ever been*and thus may it qver be i The wisdom and economy of sending sufficient reinforcement to Utah are established not only by the event, but in the opiniofi of those who, from their position and opportunities, are the most capa ble oi loraiiug 0,0 o« loiouug .1 correct jiiUgulcut. Gcueuil Job.. ston, the commander of the forces, in addressingthe Secretary of War trom Fort Bridger, under date of Oct. 18,1857, expresses the opinion that “unless a large force is sent here, from the nature of the coun try, a protracted war on tbeir [the Mormons] part is inevitable.” This he considered necessary, to terminate the war “speedily and more economical ly than if attempted by insufficient means.” In the mean time, it was my anxious desire that the Mormons should yield obedicuce to the consti tution and the laws, and without rendering it ne cessary to resort to military force. 'To aid in accom plishing this object, I deemed it advisable in April last, to despatcli two distinguished citizens of the United States, Messrs. Powell and McCulloch, to Utah. They bore with them a proclamation ad dressed by myself to the inhabitants of Utah, dated on the sixth day of that month, warning them of their true condition, and how hopeless it was on their part to persist in rebellion against the United States, and offering all those who should submit to the laws a full pardon for their past seditions and treasons. At the same time, I assured those who should persist in rebellion against the United States, that they must expect no futher lenity, hut look to be rigorously dealt with according to their deserts. The instructions to these agents, as well as a copy of the proclamation, and their reports are herewith submitted- It will be seen by their reports of the 3d of July last, that they have fully confirmed the opinion expressed by General John ston in the previous October, as to the necessity of sending reinforcement to Utah. In this they state that they.“are firmly impressed with the belief that the presence of I he army here and the large addi tional force that had been ordered to this Territory, were the chief inducements tint caused the Mor mons to abandon the idea of resisting the authority of the United States. A less decisive policy would probably have resulted in a long, bloody and ex pensive war.” These gentlemen conducted tliemselv es to my entire satisfaction, and rendered useful services in executing the humane inventions of the govern ment. It also affords me great satisfaction to state, that Gov. Gumming has performed his duty in an able and conciliatory manner, and witli the happiest ef fect. I cannot, in this connexion, refrain from mentioning the valuable services of Col. Thomas L. Kane, who from motives of pure benevolence, and without any official character or pecuniary compensation, visited Utah during the last incle ment winter for the purpose of contributing to the pacification of the territory. I am happy to inform you that the Governor and other civil officers of Utah, are now performing their appropriate functions without resistance.— The authority of the constitution and the laws has been fully restored, mid peace prevails throughout the territory. A portion of the troops sent to Utah are now en camped in Cedar valley, 44 miles southwest of Salt Lake City: and the remainder have been or dered to Oregon to suppress Indian hostilities. The march of the army to Salt Lake City, through the Indian Territory, has had a powerful effect in restraining the hostile feelings against the U. States which existed among the Indians in that region, and in securing emigrants to the Far West against tlieir depredations. This will also be the means of establishing military posts and promoting settle ments along the route. I recommend that the benefits ot our land laws and pre-emption system be extended to the peo ple of Utah bj’ the establishment of a land office in that Territory. I have occasion, also, to congratulate you on the result of our negotiations with China. You were informed by my last annual message, that our minister had been instructed to occupy a neutral position in the hostilities conducted by Great Britain and France against Canton. He was, however, at the same time, directed to co-operate cordially with the British and French ministers, in all peaceful measures to secure by treaty those just concessions to foreign commerce, which the nations of the world had a right to demand. It was impos sible for me to proceed further than this, on my own authority, without usurping the war-making power, which, under the constitution, belongs exclusively to Congress. Besides, after a careful examination of the nature and extent of our grievances, I did not believe they were of such a pressing and aggravated character, as would have justified Congress in declaring war against the Chinese empire, without first making another earnest attempt to adjust them by peaceful negotiation. 1 was the more inclined to this opin ion, because of the severe chastisement which had then but recently been inflicted upon the Chinese by our squadron, in the capture and destruction of the Barrier for us, to avence an alleged insult to our flag. The event has proved the wisdom of our neutral ity. Our minister has executed his instructions with eminent skill and ability. In conjunction witli the Russian plenipotentiary, he lias peacefully, but ef fectually, co-operated with the English and French plenipotentiaries ; and each of the four powers has concluded u separate treaty with China, of a highly satisfactory character. The treaty concluded by our own plenipotentiary, will immediately be sub mitted to the Senate. I am happy to announce that, through the ener getic yet conciliatory efforts of our consul general in Japan, a new treaty has been concluded with that empire, which may be expected materially to augment our trade and intercourse in that quarter, and remove from our couutrynien the disabilities which have heretofore been imposed upon the exer cise of tbeir religion. The treaty shall be submit ted to the Senate for approval without delay. It is my earnest desire that every misunderstand- g with the government of Great Britain, should be amicably and speedily adjusted. It has been the misfortune of both countries, almost ever since the period of the revolution, to have been annoyed by a succession of irritating and dangerous questions, threatening their friendly relations. This has par tially prevented the full development of those feel ings of mutual friendship between the people of the two countries, so natural in themselves and so conductive to tlieir common interest. Any serious interruption of the coinmeice between the United States and Great. Britain, would be equally injuri ous to both. In fact, no two nations have ever ex isted on the face of the earth, which could do each other so much good or so much harm. Entertaining these sentiments, I am gratified to inform you, tiiat the long-pending controversy be tween the two governments, in relation to the question of visitation and search, lias been amica bly adjusted. The claim on the part of Great Bri- taiu, forcibly to visit American vessels on the high seas in time of peace, could not be sustained under the law of nations, and it had been overruled by her own most eminent jurists. This question was recently brought to an issue, bj’ the repeated acts of British cruisers, in boarding and searching our merchant vessels in the Gulf of Mexico and the ad jacent Reas. These acts were the. more injurious and annoying, as these waters are traversed by a large portion of the commerce and navigation ot the United States, and their free and unrestricted use is essential to the security of the coastwise trade between different States of the Union. Such vexatious interruptions could not fail to excite the feelings of the country, and to require the interpo sition of tlie government. Remonstrances were addressed lo the British government against these violations of our rights of sovereignty, and a naval force was at the same time ordered to the Cuban waters, with directions “to protect all vessels of the United States on the high seas, from seaeli or detention by the vessels-of-war of any other na tion.” These measures received tlie unqualified and even enthusiastic approbation of the Ameri can people. Most fortunately, however, no colli sion took place, and the British government promptly avowed its recognition of the principles of international law upon this subject, as laid down by the government of the United States, in tlie note of tlie Secretary of State to the British minis ter at Washington, of April 10, 1858, which secure the vessels of the United States upon the high seas from visitation or search in time of peace, under any circumstances whatever. The claim lias been abandoned in a manner reflecting honor on the British government, and evincing a just regard for the law of nations, and cannot fail to strengthen the amicable relations between the two countries. The British government, at the same time, pro posed to the United States that some mode should be adopted, by a mutual arrangement between the two countries, of a character which may be found effective without being offensive, for verifying the nationality of vessels suspected of good grouuds of carrying false colors. They have also invited the United States to take tile initiative, and propose measures for this purpose. Whilst declining to as sume so grave a responsibility, the Secretary oi State has informed the British government that we are ready to receive any proposals which they limy feel disposed to offer, having this object in view, aud to consider them in an amicable spirit. A strong opinion is, however, expressed, tiiat the oc casional abuse of the flag of any nation, is an evil far less to be deprecated than would be the estab lishment ot any regulations which might he incom patible with tlie freedom of the seas. This gov eminent has yet received no communication, spe cifying tlie manner in which the British govern ment would propose to carry out their suggestion : and I am inclined to believe that no plan which cau be devised, will be free from grave embarrass ments. Still, I shall form no decided opinion on the subject, until I shall have carefully, and in the best spirit, examined any proposals which they may think proper to make. I am truly sorry I cannot, also inform you that the complications between Great Britain and tbc United States, arising out of tlie Clayton and Bul- wer treaty of April, 1850, have been finally ad justed. At the commencement of your last session, I had reason to hope that, emancipating themselves from further unavailing discussions, tlie two govern ments would proceed to settle the Central Ameri can questions iu a practical manner, alike honora ble and satisfactory to both: and this hope I have not yet abandoned. In my lust annual message, I stated that overtures bad been made by the British government for this purpose, in a friendly spirit, which I cordially reciprocated. Their proposal was, to withdraw these questions from direct nego tiation between the two governments ; but to ac complish the same object, by a negotiation be tween the British government and each of the Cen tral American republics, whose territorial interests are immediately involved. The settlement was to be made in accordance with the general tenor of the interpretation placed upon the Clayton aud •juiucr liealy by the Lulled States, with certain modifications. As negotiations are still pending upon this basis, it would not be proper for me now to communicate their present condition. A final settlement of these questions is greatly to be desir ed, as this would wipe out the last remaining sub ject of dispute between the two countries. Our relations with the great empires of France and Russia, as well as with all other governments on the continent of Europe, except that of Spain, continue to be of the most friendly character. With Spain our relations remain in an unsatis factory condition. In my message of December last, I informed you that our envoy extraordinary and minister plenipotentiary to Madrid had asked for his recall; and it was my purpose to send out a new minister to tiiat court, with special instruc tions on all questions pending between the two governments, and with a determination to have them speedily and amicably adjusted, if that were possible. This purpose has been hitherto defeat ed by causes which I need not enumerate. The mission to Spain has been entrusted to a dis tiuguislied citizen of Kentucky, who will proceed to Madrid without delay, and make another aud a final attempt to obtain justice from that govern ment. Spanish officials, under direct control of the captain* general of Cuba, have insulted our national flag, and, in re pe:ite>l instances, have from time to lime inflicted injuries on thc persons and property of our citizens. These have giv en birth to name rims-claims against the Spanish government the merits of which have been ably discussed for a series of years, by *.ur successive Diplomatic representatives. Not withstanding this, we have not arrived at a practical result in any single instance, unless we may except the case of the Black Warrior under the late adminstration; am', tiiat pie sentetl an outrage of such a character as would have justifi ed an iiuinedia£e Keeori to wax. All our attempts to ob tain redress have been baffled and defeated. The frequent and oft-recurring changes in the Spanish ministry have been employed as reasons tor delay. We have been compelled to wait, again and again, until the new minister shall have had time to investigate the justice of our demands: Even what h ive been denominated “the Cuban claims.” in which more than a hundred of our citizens are directly inter ested, have furnished no exception. These claims were for th** refunding of duties unjustly exacted from American ves sels at different custom-houses in Cuba, so long ago as the year 1344. The principles upon which they rest are so man ifestly equitable and just, that afler a period of nearly ten years, in is.5t, they were recognised by the Spanish govern ment. Proceedings were a Der wards instituted to ascertain their amount, and this was finally fixed according to their own statement (with which we were satisfied) at the sum of one hundred and twenty eight thousand six hundred and th«rty five dollars and fifty-four cents. Just at the moment, after a delay of fourteen years, when we had reason to ex peel that this sum would be repaid with interest we have re reived a proposal offering to refund one-third of the amount, (forty two thousand eight hundred and twenty eight dollar* anil forty-one cents,) but without interest, if we would ac cept this in lull satisfaction. The offer is, also, accompan ied by a declaration that this indemnification is not founded on any rea.-on of strict justice, hut is made as a soeciai fa vor One alleged cause lor procrastination in the exatuina tion and adjustment of our claims, arises from an obstacle which it is the duty of the Spanish government to remove. Whilst the captain general of Cuba fc invested with general despotic authority in the government of that Island, the power is withheld Iroin him to examine and redress wrongs committed by officials under his control, on citizens of tne United Slates Instead oi making our complaints directly t«» him at Havana, we are obliged to present them through our minister at Madrid. These are then referred back to the cap tain-general for information; and much time is thus consumed in preliminary investigations nnd correspondence between Madrid and Culn, before trie Spanish government will con sent to proceed to negotiation. Many of tlie difficulties be tween tlie two governments would be obviated, aud.a long train of negotiation avoided, if the captain general were in vested with authority lo settle questions of easy solution on the spot, where all the facts are fresh. and,couId be prompt ly nnd satisfactorily ascertained. We have hitherto in vain urged upon the Spanish government'to confer this power upon the captain general, ami our minister to Spain will *- gain be instructed to urge this subject on their notice. In this respect we occupy a different position fr nithepowers of Europe Cuba is almost within sight of our shores; our commerce with it is far greater than oi any oiher na tion, Including Spain irself. and our citizens are in habits of dailv and extended personal intcicourse with every partof the island. It is,therefore.a great grievance that, when any difficult y occurs, no matter how unimportant, which might be readily settled at the moment, we should be obliged to re sort to Madrid, especially when the very first step to beta ken there Is to refer it beck to Cuba. The truth is, that Cuba; in its existing colonial condition, is a constant source of injury and annoyance to the American people. It is the only spot in the civilized world where the African slave-trade is tolerated, and we are bound by treaty with Great Britain, to maintain .1 naval force on tlie const ot Africa, at much expense both of life and treasure, solely fur the purpose arresting slavers bound to that island The late serious difficulties between the United States nnd Great Bi i tain respecting the right of search, now so happily teuninat ed, could never have arisen if Cuba had not afforded a in»r. ket for slaves. As long as this market shall remain open, there can be no hope for the civilization of benighted Africa Whilst the demand for slaves continues in Cuba, wars w it) be waged among the petty and barbaious chiefs iu Africa fo r the purpose of seizing subjects to supply this trade, lo such a conditi n of affairs, it is impossible that the lightof civili zation and religion can ever penetrate these dark abodes. It has been made known to the world by my predecessors, that tlie United States have, on several occa.-ions. endeavor ed to acquire Cuba from Spain by honorable negotiation. If this were accomplished, the last relic of the African slave- trade would instantly disappear. We would n«*t,if we could, acquire Cuba in any other manner. This is due to our na tional character. All the territory which we have acquired since the origin of the government, lias been by fair pur chases from France, .Spain and Mexico, or by the free and voluntary act of the independent State of Texas, in blending her (Ystinies with our own. This course we shall eAer pur pose,unless circumstances should occur, which we do not now anticipate, rendering a departure from it clearly justifia ble. under the imperative and overruling law of selfpreser- last, ity 1 by promulgation of tt decree, leVjiug ncuutri- butiou pro rata upon all the capital iu the republic, be tween certain specified amounts, whether held by Mex icans or foreigners. Mr. Forsyth, regarding this decree ia tlie light of a “forced loan,” lurmally protested against A similar necessity exists for the passage oi such an act, for the protection of the Panama and Tehu antepec routes. In reference to the Panama route, the United States, by tbmrexisting treaty with New Grenada, pay the contribution, but to suffer it to be forcibly expressly guarantee the neutrality ot the Isthmus, ,ete,l Acfinir „„nn this advice.au American citizen ** with the view that the free transit fiom the one exacted. Acting upon this advice.au American citizen refused to pay the contribution, aud his property was seized by armed men to satisfy the amount. Not con tent with this, the government proceeded still further, aud issned a decree, banishing him from the country. Oui-miuister immediately notified them, that if this de cree should be carried into execution, he would teel it to be his duty to adopt “the most decided measures that belong to the powers and obligations of the representa tive offi “ 1 1 u joe.” Notwithstanding this warning, the banish ment was enforced, and Mr. Forsyth promptly an nounced to the government the suspension of the po litical relatione of hislegation with them, until the pleas ure of hie own government should be ascertained. This government did not regard the contribution im posed by the decree of tlie 15th May last to.be in strict ness a “forced loan,” and as such prohibited by the 10th article of the treaty of 1826, between Great Brit ain aud Mexico, to the benefits of which American cit izens are entitled by treaty; yet tlie imposition of the contribution upon foreigners, was considered an uqjust |||il oppressive measure. Besides, internal factions in The Island of Cuba, from its geographical posi tion. commands the mouth of the Mississippi, and the immense and annually increasing trade, foreign and coastwise, from the valley of that noble river, now embraeing half of the sovereign States of the Union. With that Island underthe dominion of a distant foreign power, this trade, of vital impor tance to these States, is exposed to the danger of being destroyed in the time of war, and it has hith erto heen subjected to perpetual injury and annoy ance in time of peace. Our relations with Spain, which ought to be of the most friendly character, must always be placed in jeopardy, whilst the ex isting colonial government over the Island shall re main in its present condition. Whilst the possession of the Island would be of vast importance to the United States, its value to Spain is, comparatively, unimportant Such was the relative situation of the parties, when the great Napoleon transferred Louisiana to tile United States. Jeal.ms as he ever was of the national honor and interests of France, no person through out the world, has imputed blame to him, for ac cepting a pecuniary equivalent for this cession. The publicity which has been given to our form er negotiations upon this subject, and the largo ap propriation which may be required to effect the pur pose, render it expedient, before making another uttempt to reneiv the negotiation, that l should lay the whole subject before Congress This is espe cially necessary, as it may become indispensable to success, that I should be intrusted with the means of making an advance to the Spanish government immediately after the signingof the treaty, with out awaiting the ratification of it by the Senate. I am encouraged to make this suggestion, by the ex ample of Mr. Jefferson previous to the purchase of Louisiana from France, and by that of Mr Polk in view of the acquisition of territory from Mexico. I reter tlie whole subject to Congress, and com mend it to their careful consideration. I repeat the recommendation made in my mes sage of December last, in favor of an appropria- t;,m ‘in h.- miid to the Snanish government for the tion ‘to be paid to tlie Spanish government for the purpose of distribution among the claimants in the Ainistad lease.’ President Polk first made a similar recommendation in December, 1847, and it was repeated by my immediate predecessor in December, 1853. I entertain no doubt that in demnity is fairly due to these claimants under our treaty with Spain of the 27th October, 1795; and while demanding justice we ought to do justice. An appropriation promptly made for this purpose, could not fail to exert a favorable influence on our negotiations with Spain. Our positiou in relation to the independent States south of us on this continent, and especially' those within the limits of North America, is of a peculiar character. The northern boundary of Mexico is coincident with our own southern boundary from ocean to ocean; and we must ne cessarily feel a deep interest in ali that concerns the well-being aud the fate of so near a neigh bor. We have always cherished the kindest wish es for the success of that republic, and have in dulged the hope that it might at last, after all its trials, enjoy peace and prosperity under a free and stable government. We have never hitherto interferred, directly or indirectly, with its internal affairs, and it is a duty which we owe to ourselves, to protect the integrity of its territory, against the hostile interference of any other power. Our geographical position, our direct interest in aj that concerns Mexico, and our well sertled policy in regard to the North American continent, ren der this an indispensable duty. Mexico has been in a state of constant revolu tion. almost ever since it achieved its indepen dence. One military leader after another has usurped the government iu rapid succession; and the various constitutions from time to time adopt ed, have been set at naught almost as soon as they were prccmed.lai The successive, governments have afforded no adequate protection, either to Mexican citizens or foreign residents, against lawless violence. Heretofore a seizure of the capital by a military chieftain, has been generally followed by at least the nominal submission of the country to his rule for a brief period, but not so at the present crisis of Mexican affairs. A civil war has been ragiug for some time through out the republic, between the central government at the city of Mexico, which has endeavored to subvert the constitution last framed by military power, and those who maintain the authority of that constitution. The antagonist parties each hold possession of different States of the repub lic. aud the fortunes of the war arc constantly changing. Meanwhile, the most reprehensible means have been employed by both parties to ex tort money- from foreigners, as well as natives, to carry on this contest. Thc truth is, tiiat this tine country, blessed with a productive soil and a be nign climate, has been reduced by civil dissen sion to a condition of almost hopeless anarchy and imbecility. It would be vain for this gov ernment to attempt to enforce payment in money of the claims of American citizens now amount ing to more than ten million dollars against Mexi co, because she is destitute of all pecuniary means to satisfy these demands. Our late minister was furnished with ample pow ers and instructions for the adjustment of all pend ing questions with the central government of Mex ico, and he performed his duty with zeal and ability. The claims of our citizens, some of them arising out of tho violation of an express provision of the tiea- ty of Guadalupe Hidalgo, and others from gross in juries to persons as well as property, have remained unredressed and even unnoticed. Remonstrances against these grievances, have been addressed without effect to that government. Meantime in various parts of the republic, instances have heen numerous of the murder, imprisonment, and plun der of our citizens, by different partieselaiiningand exercising a local jurisdiction; but the central government, although repeatedly urged thereto, have made no effozt either to punish the authors of these outrages or to prevent their recurrence. No American citizen can now visit Mexico on lawful business without imminent danger to his person and property. There is no adequate protection to either; and in this respect our treaty with that re public is almost n dead letter. This state of affairs was brought to a crisis in May er parts of thc republic, were at tlie same time levying similar exactions upon tbc projierty of our citizens, and interrupting their commerce. There had been an entire failure on the part of our minister, to secure redress for the wrongs which our citizens bad endured, notwithstand ing Ins persevering t fforts. And from the temper man ifested by the Mexican government, he had repeatedly assured us, that no favorable change could be expected, until the United States should “give striking evidence of their will and power to protect their citizens,” aud that “severe elmstiaing is the only earthly remedy for our grievances.” From this statement of facts, it would have been worse than idle to direct Mr. Forsyth to retruce his stejis aud resume diplomatic relations with that government; and it was therefore deemed proper to sanction his withdrawal of the legation from the city of Mexico. Abundant cause now undoubtedly exists, for a resort to hostilities against the government still holding j>os- session of the capita]. Should they succeed in subdu ing .the constitutional forces, all reasonable hope will then have expired of a peaceful settlement of our diffi culties. f>n the other hand, should the constitutional party prevail, and tlieir authority be established over the re public, these is reason to hope tliut they will be anima ted by a less sirfrieruity spirit, and may grant that redress to A merican citizens which justice requires, so far as they pos8iM the means. But for this expectation, I should at once have recommended to Congress to grant the necessary power to the President, to take possession of a sufficient portion of the remote and unsettled ter ritory of Mexico, to be held in pledge until our injuries shall be redressed, and our just demands satisfied. We have already exhausted every milder means of obtain ing justice. Iu such a case, this remedy of reprisals is recognised by the law of nations, not only as just iu it self, but as a means of preventing actual war. But there is another view of our relations with Mexi co, arising from the unhappy condition of affairs along our Southwestern frontier, which demands immediate action. In that remote region, where there are but few white inhabitants, large bands of hostile and pre datory Indians roam promiscuously over the Mexican States of Chihuahua and Sonora, and our adjoining Territories. The local governments of these States are 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 Mexi cans from (Missing the border, and committing depreda tions on our remote settlers. A state of anarchy uiid violence prevails throughout that distant irontier. The laws are a deud letter, aud life and property are wholly insecure: For this reason, the settlement of Arizona is arrested, whilst it is of great importance that a chain of inhabitants should extend all along its southern border, sufficient for tlieir own protection and that of tlie Uni ted States mail, passing to and from California. Well- founded apprehensions are now entertained, that the Indians and wandering Mexicans,equally lawless, may break up the important stage and postal communica tion, recently established between our Atlantic and Pa cific possessions. This passes very near to the Mexi can boundary, throughout the whole length of Arizona. I can imagine 110 possible remedy for these evils, and no mode of restoring law mid order oil that remote and unsettled frontier, but for the government of the Uni ted States to assume a temporary protectorate over the northern portions of Chihuahua and Sonora, and to es tablish military posts within the same—and this I earn estly Recommend to Congress. This protection may be withdrawn, as soon us local governments shall be estab lished in these Mexican Slates, capable of performing tbeir duties to the United States, restraining the lawless and preserving peace along the border. I do not doubt that this measure will be viewed in a friendly spirit by the governments and people of Chi huahua and Sonora, as it will prove equally effectual for the protection of tbeir citizens on that remote and lawless frontier, as for citizens of the United States. And in this connection, permit me to recall your at tention to the condition of Arizona. The population of that Territory, numbering, ns is alleged, more than ten thousand souls, are practically without a government, without laws, ami without any regular administration of justice. Murder and other crimes are committed with impunity. This state of things calls loudly for re dress; and 1. therefore, repeat inv recommendation for the establishment of a territorial government over Arizona. The political condition of the narrow isthmus of Cen tral America, through which transit routes pass, be tween the Atlantic aud Pacific oceans, presents a sub ject of deep interest to all commercial nations. It is over these transits that a large proportion of the trade uud travel between the European and Asiatic conti nents, is destined to pass To the United States, these route s are of incalculable importance, as a means of communication between their Atlantic and Pacific pos sessions. The latter now extend throughout seventeen degrees of latitude on the Pacific coust, embracing the important State of California and the flourishingTer ritories of Oregon and Washington. All commercial nations, therefore, have a deep and direct interest tiiat these communications shall be rendered secure trom in terruption. If an arm of the sea, connecting the two oceans, penetrated through Nicaragua and Costa ltiea, it could not be pretended that these States would have tlie right to arrest or retard its navigation, to the inju ry of other nations. The transit by land over this nar row isthmus, occupies nearly the same position. It is a highway in which they themselves have little interest, when compared with the vast interests of the rest of the world. Whilst their rights of sovereignty ought to be respected, it is the duty of other nations to require that this important passage shall not be interrupted, by the civil wars and revolutionary outbreaks, which linve so frequently occurred in tiiat region. The stake is too important, to be left at the mercy of rival companies, claiming to hold conflicting contracts with Nicaragua. The commerce of oilier nations is not to stand still aud await the adjust UK-lit of such petty controversies. Thc government of thc United .States expect no more than this, and they will not be satisfied with less. They would not if they could, derive any advantage from the Nicaragua transit, not com mon to the rest of the world. Its neutrality and protection, for the common use of all nations, is their only object. They have no objection that Nicaragua shall dem&nd aud 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 de- ot that government. If disputes arise be tween it and those with whom they may have en tered into contracts, these must be adjusted by some fair tribunal provided for the purpose, and the route must not be closed pending the contro versy. This is our whole policy, and it cannot fail to be acceptable to other nations. All these difficulties might be avoided, if, con sistently with the good faith of Nicaragua, the use of this transit could he thrown open to general com petition, providing at the same time for the payment of a reasonable rate to the Nicaraguan govern ment, on passengers and freight. In August, 1852, the Accessory Transit Compa ny made its first intcr-oceanictrip over the Nicara guan route, and continued iu successful operation, with great advantage to the public, until the 18th of February, 1856, when it was closed, and the grant to this company, as well as its cnarter, were summarily and arbitrarily revoked by the govern- meut of President Rivas. Previous to this date, however, in 1854, serious disputes concerning the settlement of tlieir accounts had arisen between the company and the government, threatening the interruption of the route at any moment. These the United States in vain endeavored to compose. It would he useless to narrate the various proceed ings which took place between the parties, up till tiie time when the transit was discontinued. Suf fice it to say that, since February, 185(1, it has re mained closed, greatly to the prejudice of citizens of the United States. Since that time the coinpe tition has ceased between the rival routes of Pana ma and Nicaragua, and, in consequence thereof, an unjust and unreasonable amount has been exacted from our citizens for tlieir passage to and from California. A treatv was signed on the ltith day of Novem ber, 1857, by the Secretary of State and Minister of Nicaragua, under the stipulations of which the use aud protection of the transit route would have been secured, not only to the United State, but equally to all other nations. How and on what pretext this treaty has failed to receive the ratifi cation of the Nicaraguan government, will appear by the papers herewith communicated from the State Department. The principal objection seems to have been, to the. provision authorizing the Uni ted States to employ force to keep the route open, in case Nicaragua should fail to perform her duty in this r-spcct. From the feebleness of that re public, its frequent changes of government, and its constant internal dissensions, this had become a most important stipulation, and one essentially necessary not only for the security of the route, hut for the safety of American citizens passing and repassing to and from our Pacific possessions.— Were such a stipulation embraced* in a treaty be tween the United States and Nicaragua, the knowl edge of this fact would oi itself most probably pre vent hostile parti.-s from committing aggressions on the route, and ren- er our actual interference for its protection unnecessary. The executive government of this country', in its intercourse with toreigu nations, is limited to the employment of diplomacy alone. When this fails, it can proceed no further. It cannot legitimately resort to force, without the direct autiiority of Congress, except in resisting and repelling hostile attacks. It would have no authority to enter the territories of Nicaragua even to preveut the de struction of the transit, aud protect the lives and property of our own citizens on their passage It is true, that oil a sudden emergency of this charac ter, 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 recom mend to Congress the passage of an act author izing the President, under such restrictions as they may deem proper, to employ tlie land and na val forces of the United States in -preventing the transit from being obstructedjor closed by lawless violence, and in protecting the lives and property of American citizens travelling thereupon, requir ing at the same time that these forces shall be withdrawn the moment the danger shall have passed away. Without such a provision, our eiti- zons wilUie constantly exposed to interruption in their piogress, and to law less violence. to the other sea may not be interrupted or embur- rassed in any future time, whilst this treaty ex ists.” In regard to the Tehuantepec route, which has been recently opened under the most favovable auspices, our treaty with Mexico of the 30th Dec. 1853, secures to tho citizens of the United States a right of transit over it for persons aud merchandise, and stipulates that neither government shall “in terpose any obstacle ” thereto. It also concedes to the United States the -‘ right to transport across the Isthmus, in closed bags, the mails of the Uni ted States, not intended for distribution along the line of the communication; also, the effects of tlie United States government and its citizens, which may he intended for transit, and not for distribu tion on the Isthmus, free of custom-house or other charges of the Mexican government These treaty stipulations with New Grenada and Mexico, in addition to the considerations ap plicable to the Nicaragua route, seem to require legislation for the purpose of carrying them into effect. The injuries which have been inflicted upon our citizens in Costa Rica uud Nicaragua, during the last two or three years, have received the prompt attention of this government. Some of these inju ries 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 beligerent conduct or party, were fired upon by the troops of Costa Rica, and numbers of them killed and wounded was brought to t he knowledge of Congress by my pred ecessor soon after its occurrence, and was also pre sented to the government ot Costa Rica, for that immediate investigation and redress which the na ture of the case demanded. A similar course was pursued with reference to other outrages in these countries, some of which were hardly less aggrava ted in their character than the transaction at Vir gin Bay. At the time, however, when oar present Minister to Nicaragua was appointed, in Decem ber. 1857, no redress had been obtained for any of these wrongs, and no reply even had been received to the deniauds which had been made by this gov ernment upon that of Costa Rica more than a year before. Our ministeijwaa instructed, therefore, to lose no time in expressing to those governments the deep regret with which the President had witnessed this inattention to the just claims of the United States, and in demand ing their prompt uud satisfactory adjustment. Unless tins demand shall be satisfactorily complied with at an early day, it wili only remain for tliis government to adopt sucb measures ns may be necessary, in order to obtain for itself tliut justice which it lias in vain at tempted to sceure by peaceful means, from the govern ment of Nicaragua anu Costa Rica. While it lias shown, and continues to show, the most sincere regard for the rights and honor of these republics, it cannot 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 Grenada we have long-standing causes of complaint, arising out of the unsatisfied claims of our citizens upon that republic; and to these have been more recently added the outrages committed upon our citizens at Panama in April '856- A treaty for the adjustment of these difficul ties was concluded by the Secretary of State and the minister of New Grenada, in September 1857 which contained just and acceptable provisions for tiiat purpose. This treaty was transmitted to Bo gota and was ratified by the Government of New Grenada, but with certain amendments. It was not, however returned to this city until after the elose of the last session of the Senate. It will be immediately transmitted to that body for their ad- viee and consent; and should this be obtaiued.it will remove all our existing causes of complaint against New Grenada on the subject of claims. Questions have arisen between the two govern ments as to the right ofNew Grenada to levy a tonage duty upon the vessels of the United States iu its ports of the Isthmus, and to levy a passenger tax upon our citizens arriving in tiiat country, whether with a design to remain there or to pass from ocean to ocean by the transit route; and also a tax u|>ou the mail of the United States transport ed over the Panama railroad. The government of New Grenada has been informed that the United States would consider the collection of either of tiiese taxes as an act in violation of tlie treaty be tween tlie 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 justice and with a sincere desire to ad just them ina satisfactory manner. A negotiation for that purpose has already been commenced. No effort lias recently been made to collect these taxes nor is any anticipated under present circuiustan ces. With the empire of Brazil our relations are oi the most friendly character. The productions of the two countries and especially those of an agri cultural nature, are such as to invite extensive mutual exchanges. A large quautity of American flour is consumed ill Brazil; whilst more than tre ble the amount in value of Brazilian coffee is con sumed in the United States. Whilst this is the case, a heavy duty lias heen levied, until very recently, upon the importation of American flour into Brazil. I am gratified however to be able to inform you that iu September last this has been reduced from $1,32 to about forty nine cents per- barrel, and the duties on other articles of produc tion have been diminished in nearly the same pro portion. I regret to state that the government of Brazil still continues to levy an export duty of about 11 per cent on coffee, notwithstanding this article is admitted free from duty in the United States. This is a heavy charge upou the consumers of coffee in oufcountry as we purchase half of the entire sur plus crop of that article raised in Brazil. Our min ister, under instructions, will reiterate his efforts to have this export duty removed; and it is hoped that the.en lightened government of the Emperor will adopt this wise, just and eqnal policy. In that event there is good reason to believe that the commerce between the two countries will greatly increase much to the advantage of both. The claims of our citizens against the govern- mentof Brazil are not, in the aggregate, of very large amount; but some of these rest upon plain principles of justice and their settlement ought not to be longer delayed. A renewed and earnest, aud I trust a successful effort, will be made by our minister toprocure their final adjust ment. On the 2d of June last. Congress passed a joint resolution authorizing the President “to adopt sucli measures and use sucli force as, in his judge ment, may be necessary and advisable” for the purpose of adjusting the differences between the United States and the republic of Paraguay, iu connexion with the attack on the United States steamer Water Witch and with other measures re ferred to in his annual message. And on the 12th July following they made ail appropriation to de fray tiie expenses and compensation of a commis sioner to that republic, should the President deem it proper to make such an appointment. In compliance with these enactments, I have appointed a commissioner who has proceeded to Paraguay, with full powers and instructions to settle these differences in an amicable and peace ful manner, if this be practicable. His experience and discretion justify the hope, that he may prove successful in convincing tlie Paraguayan govern ment, that it isduebotii to honor and justice, that they should voluntarily and promptly makeattone- ment for the wrongs which they have committed against the United States, and idemnify our injur ed citizens whom they have forcibly despoiled of their property. Should our commissioner prove unsuccessful after a sincere and earnest effort, to accomplish the object of his mission, then no alternative will re main but the employment of force to obtain just satisfaction from Paraguay. In view of this con tingency, the Secretary of the Navy under my di rection, lias fitted out and despatched a naval force to rendezvous near Buenes Ayres, which it is be lieved will prove sufficient for the occasion. It is my earnest desire, however that it may not be found necessary to resort, to this last alternative. Wlicn Congress met in December last, the bus iness of the country had just been crushed, by one of those periodical revulsions which are the inevi table consequenceof our unsound and extravagant system of bank credits and inflated currency.— With all the elements of natioual wealth in abun dance, our manufactures were suspended, our use ful public and private enterprises were arrested and thousands of laborers were deprived ol em ployment and redneed to want. Universal distress prevailed among the commercial, manufacturing, and mechanical classes. This revulsion was felt the more severely in the United States, because similar causes had produced tho like deplorrhle ef fects throughout the commercial nations^of E11 rope. Ail were experiencing sad reverses at Ihe same mouiont. Our manufacturers everywhere suffered severely not because of the recent reduc tion in the tariff of duties on imports, but because there was no demand at any price for their produc tions. I’he people were obliged to restrict them selves in tlieir purchases to articles of prime ne cessity. In the general prostration of business, the iron manufacturers!!! different States probably suffered more than any other class, and much des titution was the inevitable consequence, among the great number of workmen who had been em ploved in this useful branch of 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 01 Tlie periodical revulsions which Iiave existed i., our past history, must continue to return at inter vals, so long as our present, unbounded system ,r bank credits shall prevail. They will, however probably be the less severe in future; because it ' not to be expected, at least for many years to com** that the commercial nations of Europe, with wIiom interests our own are so naturally involved, writ expose themselves to similar calamities. But tlii subject was treated so much at large in my annual message that I shall not now pursues! f ur . ther. Still I respectfully renew tlie recommend.' tion, in favor of the passage of a uniform bank rupt law, applicable tobamting institutions. ’f|,j is all the power over the subject which, I believ* the federal government possesses. Such a ) aw would mitigate, though it might not prevent tl V evil. The instinct of self-preservation might nrtu duce a wholesome restraint upon their baukin business, if they knew iu advance, tiiat a susn./ Sion of specie payments would inevitably L/ duce tlieir civil death. ” u ' But the effects of the revulsion are now slowl but surely passing away. The «*■>«..— , 7 . . v - . =- - . . ener gy and en terprise of our citizens, with our unbounded re sources, will, within the period of another yea restore a state of wholesome industry and tr:ui Capital has again accumulated in our laru e cities The rate of interest is there very low? Conti i dence is gradually reviving, and assocnesitt discovered tiiat this capital can be profitably em ployed in commercial and manufacturing enter prise, and in the construction of railroads and other works of public and private improvement prosperity will again smile throughout the land’ l*is vain, however, to disguise tho fact from our selves, that a speculative inflation of our curren cy, without a corresponding intlation in other countries whose manufactures come into compe tition with our own, must ever produce disastrous results to our domestic manufactures No tariff short of absolute prohibitiou, can prevent these evil consequences. In connection with this subject, it is proper to refer to our financial condition. The same causes which iiave produced pecuniary distress throuo-h. out tho country, have so reduced the amount of imports from foreign countries, tiiat the revenue has proved inadequate to meet the necessary ex penses of the government. To supply the defi ciency, Congress, by the act of the 23d of De cember, 1857, authorized the issue of $20,000.00(1 of treasurj' notes; and, this, proving inade quate, they authorized, by the act of June 14th, 1858, a loan of $20,000,000, ‘to be applied to the payment of appropriations made by law.’ No statesman would advise, that we should go on increasing the national debt to meet the ordin ary excuses of the government. This would be a most ruinous policy. In case of war, our cred it must be our chief resource, at least for the first year, and this would be greatly impaired by having contracted a large debt in time of peace. Ir is our true policy, to increase our revenue so as to equal our expenditures. It would be ruinous to continue to borrow. Besides, it may be proper to observe, that tlie incidental protection, thus af forded by a revenue tariff, would at tlie present moment, to some extent, increase tiie confidence of the manufacturing interests, and give a fresh impulse to our reviving business. To this, surely no person will object. Iu regard to the mode of assessing and collect ing duties under a strictly revenue tariff, I have long entertained and often expressed the opiniou, that sound policy requires this should be done by specific duties, iu cases to which these can he properly applied. They are well adapted to com modities which are usually sold by weight or by measure, and which, from their nature, are of near ly 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 tlie best, if not the only means of securing the revenue against false and fraudulent invoices, and such lias been tlie practice adopted for this pur pose by other commercial nations. Besides, spe cific duties would afford to tlie American manu facturer the incidental advantages to which he is fairly entitled under a revenue tariff'. The pres ent system is a sliding scale to his disadvantage. Under it, when prices are high and business pros perous, the duties rise in amount wheu he least requires tlieir aid. On the contrary, when prices fall, and lie is struggling against adversity, the duties are diminished in the same proportion, greatly to his injury. Neither would there be danger that a higher rate of duty than that intended by Congress, could be levied in the form of specific duties. It would be easy to ascertain tlie average value of any imported article for a series of years; and, instead of subjecting it to an ad adrnlvrem duty at a certain rate per centum, to substitute in its place an equivalent specific duty. By such an arrangement the consumer wonld not be injured. It is true, he might Iiave 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 counterbal ance each other, and amount to the same thing, so far as his interest is concerned. This inconve nience would he trifling when contrasted with the additional security thus afforded against frauds upon the revenue, in which every consumer is di rectly interested. I iiave thrown out these suggestions as the fruit of my own observation, to which Congress, 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 department of the government. The receipts into the treasu ry from all sources during the fiscal year ending 3llth June. 1858, including the treasury notes au thorized by tlie act of December 23. 1857, were $70,273,869 50, which amount, witli the balance of $17,710.114 27 remaining in the treasury at the commencement, of the year, made an aggregate for the service of the year of $87,983,983 8(i. The public expenditures during the fiscal year, ending June 30, 1858, amounted tc $81,585,667 76, of which $9,684,537 99 were applied to the pay ment of the public debt, and the redemption of treasury notes, with the interest thereon, leaving in the treasury, on July 1, 1858, being the com mencement of the present fiscal year, $6,398,- 316 10. The receipts into tlie treasory, during the first quarter of the present fiscal year, commencing th ■ 1st July, 1858, including one half of the loan c- ? twenty millions of dollars, with the premium npou if, authorized by the act of 14th June, 1858, were $25,230,879 46, and the estimated receipts, for the remainimr three-quarters, to the 3t)tli June 1859, from ordinary sources, are $38,500,000; ina king, with the balance before stated, an aggregate of $70,129,195 56. The expenditures during the first quarter of the present fiscal year year $21,708,198 51, of which 1,010,142 37 were applied to tho payment of the public debt and the redemption of treasury notes and tho interest thereon. The estimated expendi tures, during tlie remaining three quarters, to the 30th of June, 1859,52,357,698 48, making an ag gregate of 74,065.896 99. being aa excess of ex jienJiturc beyond the estimated receipts into the treasury from ordinary sources, during the fiscal year, to tlie 30th June, 1859, of 3,936,701 43. Ex traordinary means are placed by law within the command of the Secretary of the Treasurj - , bj - the icissue of treasury notes redeemed, and by nego tiating tire balance of tlie loan authorized by tho act of 14th of June, 1858, to the extent of eleven millions of dollars which if tealized during tlie present fiscal year, will leave a hah.uec in tho treasury, on thc first day of July. 1859, of 7,063,- 298 57. The estimated receipts during the next fiscal year ending 3:-th June, I860, are $62,006,0(W, which, with the above estimated balance of $7,- 1163,298 57, make an aggregate for tho service of , of $69,063,298 50. The esti- railroads, extending its benefits to every portion hig half of tlie loan of $20,060,000 not yet nrg>' of the Union had been brought to a dead pause.— The same consequences have resulted from simi lar causes to many other branches of useful man ufactures. It is self evident that where there is no ability to purchase manufactured articles, these cannot be sold and consequently must cease lo be produced. No government, and especially a government 01 such limited powersaS that of the United States could have prevented tlie late revulsion. The whole commercial world seemed for years to have been rushing to this catastrophe. The same ruin ous consequencerwouid have followed in tiie Uni ted 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. The tariff of 1857 had no agency in tho result. The general causes existing throughout the world, could not haste been controlled by tho legislation of any particular country. the next fiscal year, mated expenditures during the next fiscal year eliding 3uth, June, 186(1, are$71J39,I47 46, which leave a deficit of estimated means, compared with tlie estimated expenditures for that year, commen cing on the 1st of July. 1859, of $4,075,84889. I11 addition to this sum, tlie Postmaster General will require from the treasury - , for the service of the Postoffiee Department $3,838,728. as enplained in the report ot tlie Secretary of tlie Treasury, which will increase the estimated deficit on the 30th June, 1860, to $7,914,570 89. To provide for the paymeut of this estimated deficiency, which will bo increased by such appropriations as may be made by Congress, not estimated for in the re port of tlie Treasury Department, as well as t« provide for tlie gradual redemption, from year to year, of the outstanding treasury notes, the Sec retary of the Treasury recommends such a revis ion of the present tariff’ as will raise the required amount. After what I have already said, I need scarcely add that I concur in the opinion expressed in his report—that the public debt should not he increased by an additional loan, and would there fore strongly urge upon Congress tlie duty of m* - king, at tlu'ir present session, the necessary provis ion for meeting these liabilities. The public debt on the 1st July. 1858, the ooai- mencement of the present fiscal year, was 155,977 66. During the first quarter of the present year, tU sum of $10,(MM),000 lias been negotiated of the loan authorized by thc act of 14th June, 1868—m*- king the present outstanding public debt, exc- 11- sive of treasury notes, $36 156,977.66. There w« on the 1st July, 1858, of treasury notes issued h* authority of tiie act of December 23, 1857. unre deemed, the sum of $19,754.8i)0—making j- 1 amount of actual indebtedness, at that date,?' ■ 910,776.66. To this will be added $I<V ■f' ring tho present fiscal year—this being therein*-* tinted. , *1. The rapid increase of the public deot, and u“ necessity' which exists for a modification ot 6*'' tariff, to meet even the ordinary expenses ot government, ought to admonish us all, 1,1 “ u -j spcctive spheres of duty, to the practice OiI t .* economy'- The objects of expenditure limit' d in number, as far as this may be p r * c ‘ ble, and the appropriations necessary to e**} them into effect, to be disbursed under strictest accountability. Enlightened ec° n0 - does'not consist in tlie refusal to appropriate ni ey for constitutional purposes, essential to ‘h fence, progress and prosperity of the republic- in taking care that none of this money »ha wasted by mismanagement, in its applies 110 the objects designated by law. more-at Comparisons between the annual expcnui the present time, and what if was ten or t ^ years ago, are altogether fallacious.