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DAILY CONSTITUTIONALIST : PUBLISHED BY J AMES GARDNER, JAMES T. NlSßET—Editor. AUGUSTA, GrA. FRIDAY MORNING, DEC. 30, 1859. message fellow-citizen4 of the Senate and House of Representatives : Our deep and heart felt gratitude is due to that Almighty Power which has bestowed upon us such varied and uumerous blessings throughout the past year. The general health of the country has been excellent; our harvests have been unusually plentiful; and prosperity smiles throughout the laud. Indeed, notwithstanding our demerits, we have much reason to beiieve, from the past eveuts in our history, that we have enjoyed the special protection of Divine Providence ever since our origin as a nation. We have been exposed to many threatening and alarming difficulties in our pro gress ; but on each successive occasiou the im pending cloud has been dissipated at the moment ft appeared ready to burst upon our head, and the danger to our institutions has passed away. May we ever be under the Divine guidance and protec tion! Whilst it is the duty of the President “from time to time to give to Congress information of the state of the Union,” I shall not refer in detail to the recent sad and bloody occurrences at Harper’s Ferry. Stili, it is proper to observe that these events, howevtr bad and cruel in themselves, de rive their chief importance from the apprehension that they are but symptoms of an incurable dis ease in the public mind, which may break out in still more dangerous outrages, andjterminate at last in an open war by the North to abolish slave ry in the South. Whilst, for myself, I entertain no such apprehension, they ought to afford a' solemn warning to us all to beware of the approach of danger. Our Union is a stake of such inesti mable value as to demand our constant and watch ful vigilance for its preservation. In this vieiv, let me implore my countrymen, North and South, to cultivate the ancient feelings forbear ance and good will towards each olher, and strive to allay the demon spirit of sectional hatred and strife now alive in the land. This advice proceeds from the heart of an old public functionary whose service commenced in the last generation, among the wise and conservative statesmen of that day, now nearly all passed away, and whose first and dearest earthly wish is to leave his country tran quil, prosperous, united, and powerful. We ought to reflect that in this age, and espe cially in this country, there is an incessant flux and reflux of public opinion. Questions, w'hich in their day assumed a most threatening aspect, have now nearly gone from the memory of men. They are “volcanoes burnt out, and on the lava and ushes and squalid scoria? of old eruptions grow the peaceful olive, the cheering vine, and the sustain ing corn.” Such, in my opinion, will prove to be the late of the present sectional excitement, should those who wisely seek to apply the remedy', con tinue always to coutine their efforts within the pale of the Constitution. If this course be pursued, the existing agitation on the subject of domestic sla very, like everything human, will have its day and give place to other and less threatening contro versies. Public opinion in this country is all-pow erful; and when it reaches a dangerous excess up on any question, the good sense of the people will furnish the corrective and bring it back within safe limits. Still, to hasten this auspicious result, at the present crisis, we ought to remember that every rational creature must be presumed to in tend the natural consequences of his ow n teach ings. Those who announce abstract doctrines subversive of the Constitution and the Union, must not be surprised should their heated parti sans advance one step further, and attempt by vio lence to carry these doctrines into practical effect, lathis view of the subject it ought never to be forgotten that, however great may have been the political advantages resulting from the Union to every portion of our common country, these would al!|prove to be as uothing, should the time ever ar rive when they cannot be enjoyed without serious danger to the personal safety of the people of fif teen members of the Confederacy. If the peace of the domestic fireside throughout these States should ever be invaded, if the mothers of families within this extensive region should not he able to retire to rest at n ght without suffering dreadful apprehensions of what may be their own fate and that of their children before the morning, it would be vain to recount to such a people the political benefits which result to- them from the Union. Self-preservation is the first instinct of nature; aud therefore any state of society in which the sword is all the time suspended over the heads @f the people, must at last become intolerable. But I indulge in no such gloomy forebodings. 011 the contrary, I firmly believe that the events at Har per’s Ferry, by causing the people to pause and reflect upon the possible peril to their cherished institutions, will be the means, under Providence, of allaying the existing|excitement; and preventing future outbreaks of a similar character. They will resolve that the Constitution and the Union shall not be endangered by rash counsels, know ing that, should “the silver cord be loosed or the golden bowl be broken * * at the fountain,” human power could never re unite the scattered and hostile fragments. I cordially congratulate you upon the final set tlement by the Supreme Court of the United States of the question of slavery in the Territories, which had presented an aspect so truly formidable at the commencement of my Administration. The right has been established of every citizen to take his property of any kind, including slaves, into the common Territories belonging equally to all the States of the Confederacy, and to have it pro tected there under the Federal Constitution. Neith er Congress nor a Territorial Legislature, nor any human power, has any authority to annul or impair this vested right. The Supreme judicial tribunal of the country, which is a co-ordinate branch of the Government, has sanctioued aud affirmed these principles of constitutional law, so manifestly jus*, in themselves, and so well calculated to promote peace and harmony among the States. It is a striking proof of the sense of justice which is in herent in our people, that the property in slaves has never been disturbed, to my knowledge, in any of the Territories. Even throughout the late troubles in Kansas there has not b en any attempt, as I am credibly informed, to interfere, in a single instance, with the right of the master. Had any such attempt been made, the judiciary would, doubtless, have afforded an adequate remedy. Should they fail to do this hereafter, it will then be time enough to strengthen their hands by fur ther legislation. Had it been decided that either Congress or the Territorial Legislature possess the power to annul or impair the right to property in slaves, the evil would be intolerable. In the latter event, there would be a struggle for a ma jority of the members of the Legislature at each successive election, and the sacred rights of pro perty held under the Federal Constituiion would depend for the time being on the result. The agi tation would thus be rendered incessant whilst the Territorial condition remained; and its bane ful influence would keep alive a dangerous excite ment among the people of the several States. Thus has the status of a Territory, during the intermediate period from its first settlement until it shall become a State, been irrevocably fixed bv the final decision of the Supreme Court. Fortu nate has this been for the prosperity of the Terri tories, as well as the tranquility of the States. Now, emigrants from the North and the South, the East and the West, will meet in the Territories on a common platform, having brought with them that species of property best adapted, in their own opinion, to promote their welfare. From natural causes the slavery question will in each case soon virtually settle itself; and before the Territory is prepared for admission as a State into the Union this decision, one way or the other, will have been a foregone conclusion. Meanwhile the settlement of the new Territory wilt proceed without serious interruption, and its progress and prosperity will not be endangered or retarded by violent political struggles. When 111 the progress of events the inhabitants of any Territory shall hare reached the number required to form a State, they will then proceed, in a regular manner, and in the exercise of the rights of popular sovereignty, to form a Constitu tion preparatory to admission into the Union. After this has been done, to employ the language of the Kansas and Nebraska act, they “ shall be received into the Union with or without slavery, as their Constitution may prescribe at the time of their admission.” This sound principle has hap pily been recognised, in some form or other, bv an almot unanimous vote of both Houses of the last Congress. All lawful means at my command have been em ployed, and shall continue to he employed, to exe cute the laws against the African slave-trade. Af ter a most careful and rigorous examination of our coasts, and a thorough investigation of the subject, we have not been able to discover that any slaves have been imported into the United States except the cargo by the Wanderer, numbering between three and four hundred. Those engaged in this unlawful enterprise have been rigorously prosecu ted ; but not with as much success as their crimes have deserved. A number of them are still under prosecution. Our history proves that the Fathers of tiie Re public, in advance of all oiher nalions, condemned the African slave trade. It was, notwithstanding, deemt-d expedient by the framers of the Constitu tion to deprive Congress of the power to prohibit “the migration or importation of such persons as any of the States now' existing shall think proper to admit” “prior to the year one thousand hundred and eight.” 0 , It will be seen that this restriction on the pow er of Congress was confined to such States only as might think proper to admit tbe importation of slaves, it did not extend to other States or to the trade carried on abroad. Accordingly, we find that so early as the 22d March, 171)4* Congress passed an act imposiug severe penalties and pun ishments upon citizens and residents of the Unit ed States who should engage in this trade between foreigu nations. The provisions of this act were exteuded and enforced by the act of 10th May, 1800. Again: The States themselves had a clear right to waive the constitutional privilege intended for their benefit, and to prohibit, by their own laws, this trade at any time they thought proper previ ous to 1808. Several of them exercised this right before that period, and among them some contain ing the greatest number of slaves. This gave to Congress the immediate power to act in regard to all such States, because they themselves had re moved the constitutional barrier. Congress ac cordingly passed an act on 28th February, 1803, “to prevent the importation of certain persons into cer tain States where, by the laws thereof, their ad mission is prohibited.” In this manner the im portation of African slaves into the United States was. to a great extent, prohibited some years in advance of 1808. As the year 1808 approached, Congress deter mined not to suffer this trade to exist even for a single day after they had the power to abolish it. On the 2d of March, 1807, they passed an act to take effect “from and alter the Ist day of January, 1808,” prohibiting the importation of African slaves into the United States. This was followed by subsequent acts of a similar character, to which l need not specially refer. Such were the princi ples and such the practice of our ancestors more than fifty years ago in regard to the African slave trade. It did not occur to the revered patriots who had been delegates to the convention, and afterwards became members of Congress, that in passing these laws they had violated tbe Constitution which they had framed with so much care and de liberation. They supposed that to prohibit Cou gress, in express terms, from exercising a specified power betore an appointed day, necessarily in volved the right to exercise this power after that ■ day had arrived. If this were not the case, the framers of the Constitution had expended much labor in vam. Had they imagined that Congress would possess no power to prohibit the trade either before or af ter 1808, they would not have taken so much care to protect the States against the exercise of th:s power before that period. Nay more, they would not have attached such vast importance to this provision as to have excluded it from the possi bility of future repeal or amendment, to which other portions of the Constitution were exposed. It would, then, have been wholly unnecessary to engraft on the fifth article of the Constitution, pre scribing the mode of its own future amendment, (he proviso, “ that no amendment which may be made prior to the year one thousand eight hundred and eight shall in any manner affect” the provi sion in the Constitution securing to the States the right to admit the importation of African slaves previous to that period. According to the adverse construction, the clause itself, on which so much care and discus sion had been employed by the members of the Convention, was an absolute nullity from the be ginning, and all that lias since been done under ii a mere usurpation. It was well and wise to confer this power on Congress, because, bad it been left to the States, its efficient exercise would have been impossible. In that event any one State could have effectually continued the trade, not only for itself but for ail (he other slave States, though never so much against their will. And why? Because African slaves, when once brought within the limits of any one State, in accordance with its laws, cannot practically be excluded from any other State where slavery exists. And even if all 1 lie States had separately passed laws prohibiting the importa tion of slaves, these laws would have failed of ef fect for want of a naval force to capture the slav ers and to guard the coast. Such a force no State can employ in time of peace without the consent of Congress. These acts of Congress, it is believed, have, wish very rare and insignificant exceptions, accomplish ed their purpose. For a period of more than half a century, there has been no perceptible addition to the number of our doajesuc slaves. During this period, their advancement in civilization has tar surpassed that of any other portion of the Afri can race. The light anil the blessings of Christi anity have been extended to them; aud both their moral and physical condition has been greatly iui , proved. 1 Re-open the trade, and it would be difficult to determine whether the effect would be more dele terious on the interests of the master, or on those I of the native born slave. Os the evils to the mas ! ter, the one most to be dreaded would be the in troduction of wild, heathen, and ignorant barbari- I ans|among the sober, orderly, and quiet slaves, I whose ancestors have been on the soil for several generations. This might tend to barbarize, de- I moralise, and exasperate the whole mass, and pro duce most deplorable consequences. Tbe effect upon the existing slave would, if pos t sible, he still more deplorable. At present he is treated with kindness and humanity. He is well fed, well clothed, and not overworked, ills con r ditiou is incomparably better than that of the Coolies which modern nations of high civilization 1 have employed as a substitute for Afiican slaves. . Both the philanthropy ar,d the self-interest of the » master have combined to produce this humane result. But let this trade be re-opened, and what 1 will be the effect? The same, to a considerable extent, as on a neighboring island—the only spot now on earth where the African slave-trade is i openly tolerated; and this in defiance of solemn 1 treaties with a power abundantly able at any mo -1 ment to enforce their execution.. There the master, intent upon present gain, extorts from the slave as much labor as his physical powers are capable of enduring—knowing that, when death comes to his relief, his place can be supplied at a price reduced to the lowest point by the competition of rival African slave-traders. Should this ever be the case in our country —which I do not deem possible—tbepiesent useful character ofthe do mestic institution, wherein those too old and too young to work are provided for with care and humanity, and those capable of labor are not overtasked, would undergo an unfortunate change. The feeling of reciprocal dependence and attach ment which now exists between master and slave would be converted into mutual distrust and hos tility. Hut we are obliged, as a Christian and moral ua tion to consider what would be the effect upon un happy Africa itself, if we should re-opeu the slave trade. This would give the trade an impulse and extens'on which it has never had evenjin its palmi est days. The numerous victims required to sup ply it would convert the whole slave coast into a perfect Pandemonium, for which this country would be held responsible in the eyes, both of God aud man. Its petty tribes would then be con stantly engaged in predatory wars against each other, for the purpose of seizing slaves to supply the American market. Al! hopes of Africau civili zation would thus be ended. On the other band, when a market for African slaves shall no longer be furnished in Cuba, and thus all the world be closed against ibis trade, we may then indulge a reasonable hope for the grad ual improvement of Africa. The chief motive of war among the tribes will cease whenever there is no longer any demand for slaves. The resources of that fertile but miserable country might then he developed by the hand of industry, and afl'ord sub jects for legitimate foreign and domestic com merce. In this manner Christianity and civiliza tion may gradually penetrate ihe existing gloom. The wisdom of the course pursued by this Gov ernment towards China, has beeu vindicated by the event. Whilst we sustained a neutral position iu the war waged by Great Britain and France, against the Chinese Empire, our late Minister, in obedience to his instructions, judiciously co-oper ated with the ministers of these powers in all peaceful measures to secure, by treaty, the just concessions demanded by the interests of foreign commerce. The result is that satisfactory trea ties have been concluded with China by therespect lve Ministers of the United States, Great Britain, France and Russia. Our “ireatv, or general con vention of peace, amitv, and commerce,” with that Empire was concluded at Tientsin, on the 18th of June, 1858, and was ratified by the President, by, and with the advice and consent ofthe Senate, on the 21st December following. On the 15tb December, 1658, John E. Ward, a distinguished citizen of Georgia, was duly com missioned as Envoy Extraordinary and Minister Plenipotentiary to China. He let! the United States for the place of his destination on the stli of February, 1859, bearing with him the ratified copy of tins treaty, and arrived at Shanghai on the 28tli May. From thence he proceeded to Peking on the 16th June, but did not arrive in that city until the 27th July. According to the terms of the treaty the ra*i!ica(ions were »o be ex changed on or before the 18th June, 1859. This was rendered impossible by reasons and events beyond his control, not necessary to detail; but still it is due to the Chinese authorities at Shang hai to state that they always assured him no ad vantage should he taken of the delay ; and this pledge has been faithfully redeemed. Ou the arrival of Mr. Ward at Pekin he request ed an audience of the Emperor to present his letter of credence. This he did not obtain, in cou sequence of his very proper refusal to submit to the humiliating ceremonies required by the eti queG >f this strange people in approaching their sovereign. Nevertheless, the interviews on this question were conducted in the most friendly spirit, and with all due regard to his personal feel ings and the honor of his country. When a pre sentation to his Majesty was found to be impossi ble, ihe letter or credence from the President was received with peculiar honors by Kweiliang, “the Emperor’s Prime Minister, and the second man in the .Empire to the Emperor himself.” The ratifi cations of th% treaty were afterwards, on the 16th of August, exchanged in proper form at Pei-tsang. As the exchange did not take place until after the day prescribed by the treaty, it is deemed proper, before its publication, again to submit it to the Senate. It is but simple justice to the Chinese authori ties to observe, that, throughout the whole trans action, they appear to have acted in good faith and in a friendly spirit towards the United States. It is true this has been done after their own pecu liar fashion ; but we ought to regard with a le nient eye tbe ancient customs of an empire dating back for thousands of years, so far as this mav be consistent with our own national honor. The conduct of our minister on the occasion has re ceived my entire approbation. In order to carry out the spirit of this treaty, aud to give it lull effect, it became necessary to conclude two supplemental conventions—the one tor the adjustment and satisfaction of the claims of our citizens, and the other to fix the tariff on imports and exports, aud to regulate the transit duties and trade of our merchants with China. This duty was satisfactorily performed by our late minister. These conventions bear date at Shang hai on the Bth November, 1858. Having been con sidered in the light of binding agreements subsid iary to the principal treaty, and to be carried into execution without delay, they do not provide lor any formal ratification or exchange of ratifications by the contracting parties. This was not deemed necessary by the Chinese, who are already pro ceeding in good faith to satisfy the claims of our citizens, and, if is hoped, to carry out the other provisions of the conventions. Still I thought it was proper to submit them to the Senate, by which they were ratified on the Sd March, 1851). The ratified copies, however, did not reach Shanghai until after the departure of our minister to Peking, and these conventions could not, therefore, be exchanged at the same time with the principal treaty. No doubt is entertained that, they will be ratified and exchanged by the Chinese govern ment, should this be thought advisable; but, under (he circumstances presented, l shall con sider them binding engagements from their date on both parties, and cause them to be published as such for the information and guidance of our merchants trading with the Chinese empire. It affords me much satisfaction to inform you that all our difficulties with the Republic of Par aguay have been satisfactorily adjusted. It hap pily did not become necessary to employ the force for this purpose which Congress had placed at my command, under their joint resolution of 2d June, 1858. On the contrary, the President of that Re public, in a friendly spirit, acceded promptly to the just and reasonable demands of the govern ment of the United States Our commissioner ar rived at Assumption, the Capital of the Republic, on the 25th of January, 1859, and left ou the 17th of February, having in three weeks ably and suc cessfully accomplished all the objects of his mis sion. The treaties which he has concluded will be immediately submitted to the Senate. In the view that the employment of other than peaceful means might become necessary to obtain “just satisfaction” from Paraguay, a strong naval force was concentrated in the waters of the La Plata to await contingencies, whilst our commis sioner ascended the rivers to Assumption. The Navy Department is entitled to great credit for the promptness, efficiency and economy with which this expedition was fitted oat and conducted, it consisted of nineteen armed vessels, great and small, carrying 200 guns and 2,600 men, all under ibe command of the veteran and gallant Shubrick. The entire expenses of the expedition have been defrayed out ot the ordinary appropriations for the naval service, except the sum of $280,000, ap plied to the purchase of seven of the steamers, constituting a part of it, under the authority of the naval appropriation act of the 3rd March last. It is believed that these steamers are worth more than their cost, and they are all now usefully and actively employed in the naval service. The appearance of so large a force, tilled out in such a prompt manuer, in the far distant waters of the La Plata, and the admirable conduct of the officers and men employed in it, have had a hap py effect in favor of our country.throughout all that remote portion of the world. Our relations with the great empires of France and Russia, as well as with all other governments on the continent of Europe, unless we may ex cept that of Spaiu, happily continue to be of the most friendly character. In my last annual message 1 presented s state ment of the unsatisfactory condition of our relations with Spain ; and 1 regret to say that this has not materially improved. Without special reference to other claims, even the “Cuban claims,” the payment of which has been ably urged by our ministers, and in which more than a hundred of our citizens are directly interested, remain unsatis fied, notwithstanding both their justice and their amount ($128,635 54) had been recognised and ascertained by the Spanish government itself. I again recommend that an appropriation be made “to be paid to the Spanish government for the pur pose of distribution among the claimants in the Amistad case.” In common with two of my pre decessors, I entertain no doubt that this is requir ed by out - treaty with Spam of the 27th October, 1795. The failure to discharge this obligation has been employed by lhe cabinet of Madrid as a rea son agajnst the settlement of our claims. 1 need not repeat the arguments which I urged iu my last annual message in favor of the acquisi tion of Cuba by fair purchase. My - opinions on that measure remain unchanged. 1, therefore, again invite the serious attention of Congress to this important subject. Without a recognition of this policy on their part, it will he almost impossi ble to institute negotiations with any reasonable prospect of success. Until a recent period there was good reason to believe that I should be able to announce to you on the present occasion that our difficulties with Great Britain, arising out of the Clayton and Bulwer treaty, had been finally adjusted iu a man ner alike honorable and satisfactory to bolh par ties. From causes, however, which the British government hud not anticipated, they have not yet completed treaty arrangements with the Re publics of Honduras and Nicaragua, iu pursuance of the understanding between the two govern ments. It is, nevertheless, confidently expected that this good work will ere long be accomplished. Whilst indulging the hope that no other subject remained which could disturb the good under standing between the two countries, the question arising out of the adverse claims of the parties to the Island of San Juan, under the Oregon treaty of the 15th of June, 1846, suddenly assumed a threatening prominence. In order to prevent un fortunate collisions on that remote frontier, the late Secretary of State, on the 17th July, 1855, addressed a note to Mr. Crampton, then British minister at Washington, communicating to him a copy of the instructions which he [Mr. Murcv] had given, on the 14th July, to Gov. Stevens, of Wash ington Territory, having a special reference to an “ apprehended conflict between our citizens and the British subjects on the Island of San Jnan.” To prevent this, the governor was instructed “that the officers of the Territory should abstain from all acts on the disputed grounds which are calculated to provoke any conflicts, so far as it can be done without implying the concession to the authorities of Great Britain of an exclusive right over the promises. The title ought to be settled before either party should attempt to exclude the other by forc<*, or exercise complete and exclusive sovereign rights within the fairly disputed limits.” In acknowledging the receipt on the next day of Mr. Marcy’s note, the British minister express ed his entire concurrence “in the propriety of the course recommended t?i the Governor of Washing ton Territory by your [ Mr. Marcy’sJ instructions to that officer,” and statingthat he had “lost no time in transmitting a copy of that document to the Governor-general of British North America,” and had “earnestly recommended to "his Excellency to take such measures as-to him may appear best calculated to secure, on the part of the British lo cal authorities and the inhabitants of the neigh borhood of the line in question, the axercise of the same spirit of forbearance which is inculcated by you [Mr. Marcyl on the authorities and citizens of the United States.” Thus matters remained upon the faith of this arrangement until the 9th July last, when Gen. Harney paid a visit to the Island. He found upon it twenty-five American residents w ith their fami lies, and also au establishment of the Hudson’s Bay Company for the purpose of raising sheep.— A short time before his arrival one of these resi dents had shot an auimal belonging to the com pany, whilst trespassing upon his premises, for which, however, he offered to pay twice its value; but that was refused. Soon after “the chief factor of the company at Victoria, Mr. Dalles, son-in-law of Governor Douglas, came to the Island in the British sloop-of-war Satellite, and threatened to take “this American (Mr. Cutler) by force to Victoria, to answer for the trespass he had com mitted. The American seized his rifile and told Mr. Dalles if any such attempt was made he would kill him on the spot. The affair then ended.” Under these circumstances, the American set tlers presented a petition to the General, “through the United States inspector of customs, Mr. Iluhbs, to place a force upon the island to protect them from the Indians as well as the oppressive inter ference of the authorities of the Hudson Bay Com pany, at Victoria, with their rights as American citizeus.” The General immediately responded to this petition, and ordered Capt. George E. Pickett, 9th infantry “to establish his company on Belle vue, or San Juan island, on some suitable position near the harbor at the South-eastern extremity.” This order was promptly obeyed, and a military post was established at the place designated. The force was afterwards increased, so that by the last return the whole number of troops then on the island amounted in the aggregate to six hundred and ninety-one men. Whilst 1 do not deem it proper on the present occasion to go further into the subject, and dis cuss the weight which ought to be attached to the statements of the Bijtish cojouial authorities, con testing the accuracy of the information on which tne gallant General acted, it was due to him that I should thus present his own reasons for issuing the order to Captain Pickett. From these it is quite clear his object was to prevent the British authorities on \ ancouver’s Island from exercising jurisdiction over American residents on the Island of ban Juan, as well as to protect them against the incursions of the Indians. Much excitement prevailed for some time throughout that region, aud serious danger of collision between the parties was apprehended. The British had a large naval force in the vicinity and it is but an act of simple justice to the Adnii- Tvil on ttint station to stato that ho wisely and dis creetly forebore to commit any hostile act, but de termined to refer the whole affair to his Govern ment and await their instructions. This aspect of the matter, in my opinion de manded serious attention. It would In ~e been a great calamity for both nations had they been precipitated into acts of hostility, uot on ;he ques tion ol title to the island, but merely concerning what should be its condition during the interven lug period whilst the two Governments might be employed in settling the question to which of them it belongs. For this reason Lieutenant-Gen eral bcott was despatched on the 17th September last to \\ ashington Territory to take immediate command of the United States forces on the Pa cific coast, should he deem this necessary. The mi »P object of his mission was to carry out the spirit ot the precautionary arrangement between the late Secretary of State and the British Minis ter, and thus to preserve the peace and prevent collision between the British and American au thorities pending the negotiations between the two Governments. J'.utertaining no doubt of the validity of our ti tle, 1 need scarcely add that, in any event, Ameri can citizens were to be placed on a looting at least as favorable as that of British subjects, it being understood that Captain Pickett’s company should remain on ihe island. It is proper to observe that, considering the distance from the scene of action, and iu ignorance ol what might have transpired on the spot before the General’s arrival, it was necessary to leave much to his discretion; and I am happy to state that the event has proven that this discretion could not have been iutrusted to more competent hands. General Scott Tias recent ly returned from his mission, having successfully accomplished its objects; and there is no longer any good reason to apprehend a collision between the forces ol the twucountries during the penden cy of the existing negotiations. I regret to inform you that there has been no improvement in the affairs of Mexico since my last annual message, and l am again obliged to ask the earnest attention of Congress to the un happy condition of that Republic. The constituent Congress of Mexico, which ad journed on the 17 th of February, 1857, adopted a Constitution, and provided for a popular election. This took place in the following July, [1857,] and General Comonfort was chosen President, almost without opposition. At the same election a new Congress was chosen, whose first session com menced on the 16th of September, [1857.] By the Constitutiomof 1857, the Presidential term was to begin on the Ist of December, [18,57,] and continue for four years. On that day General Comonfort appeared before the assembled Congress in the city of Mexico, took the oath to support the new Constitution, and was duly inaugurated as Presi dent. Within a month afterwards he had been driven from the capital, and a military rebellion had assigned the supreme power of the Republic to General Zuloaga. The Constitution provided that in the absence of the President his office should devolve upon the Chief Justice of the Su preme’Conrt; and. General Comonfort having left the country, this functionary, General Juarez, pro ceeded to form, at Guanajuato, a constitutional Government. Before this was officially known, however, at the capital, the Government of Zuloaga had been re cognised by the entire diplomatic corps, including the Minister of the United States, as the de facto Government of Mexico. The constitutional Presi dent, nevertheless, %iaintained his position with firmness, and was soon established with his cabi net at Vera Cruz. Meanwhile, the Government of Zuloaga was earnestly resisted in many parts of the Republic, and even in the capital, a portion of thejarmv having pronounced against it, its func tions were declared terminated, and au|Assembly of citizens was invited for the choice of a new President. This Assembly elected Gen. Miramo ; but that officer repudiated the plan under which lie was chosen, and Zuloaga was thus restored to bis previ ms position, lie assumed it, however, only to withdraw from it, and Miramon, having become, by his appointment, “President Substi tute,” continues, with that title, at the head of the insurgent party. In my last annual message I communicated to Congress the circumstances under which the. late Minister of the United States suspended his offi cial relations with the Central Government, and withdrew front the country, it was impossible to maintain friendly intercourse with a Government, like that at the Capital, under whose usurped au thority wrongs were constantly committed, but never redressed, llad this been an established Government, with its power extending, by the consent of the people, over the whole of Mexico, a resort to hostilities against it would have been quite justifiable, and indeed necessary. But the country was a prey to civil war; and it was hoped that the success of the constitutional President might lead to a condition of things less injurious to the United States. This success became so probable that, in January last, I employed a relia ble agent to visit Mexico, and report to me the actual condition and prospects of the contending parties. Inconsequence of his report, and from information which reached me from other sources, favorable to the prospects of the constitutional cause, 1 felt justified in appointing a new Minister to Mexico, who might embrace the earliest suita ble opportunity of restoring our diplomatic rela tions with that Republic. For this purpose a distinguished citizen of Ma ryland was selected, who proceeded on his mission ou the Bth of March last, with discretionary au thority to recognise the Government of President Juarez, if, on his arrival in Mexico, he should find it entitled to such recognition, according to the established practice of the United States. On the 7th of April following, Mr. McLane presented his credentials to President Juarez having no hesita tion “in pronouncing the Government of Juarez to be the only existing Goveruinent’of the Republic.” He was cordially received by the authorities at Vera Cruz; and they have ever since manifested the most friendly disposition towards the United States. Unhappily, however, the constitutional Government bus not been able to establish its power over the whole Republic. It is supported by a large majority of the people and the States, but there are important pans of the country where it can enforce no obedience. General Miramon maintains himself at the capital; and in someot the distant provinces there are military governors who pay little respect to the decrees of either Gov ernment. In the meantime the excesses which always attend upon civil war, especially in Mexico, are constantly recurring. Dutrages ol' the worst de scription are committed, both upon persons and property. There is scarcely any form of injury which has not been suffered by our citizens iii Mexico during the last few years. We have been nominally at peace with that Republic, but “so far as the interests of our commerce or of our citi zens who have visited the country as merchants, shipmasters, or in other capacities, are concerned, we might as well have been at war.” Life has been insecure, property unprotected, and trade im possible,except at a risk of loss whichjpiudent men cannot be expected to incur. Important contracts, involving large expenditures, entered into by the Central Government, have beeu set at defiance by the local Governments. Peaceful American resi dents, occupying their rightful possessions, have beeu suddenly expelled the country, in defiance of treaties, and by the mere force of arbitrary power. Even the course of justice bus not beeu safe from control; and a recent decree of Mirumon permits the intervention of Government in all suits where either party is a foreigner. Vessels of the Unfed States have been seized without law, and a consu lar officer who protested against such seizure has been fined and imprisoned for disrespect to the authorities. Military contributions hare been levied in vio lation of every principle of right; and the Ameri can who resisted the lawless demand has had his property forcibly taken away, and has been him self banished. From a conflict of authority in different parts of the country, tariff duties which have been paid in one place have been exacted over again in another place. Large numbers of our citizens have been arrested and imprisoned without any form of examination, or any opportu nity for a hearing, and even when released have only obtained their liberty after much suffering and injury, and without unv hope of redress. The wholesale massacre of Crabbe and his associates without trial in Sonora, as well as the seizure and murder of four sick Americans who had taken shelter in the house of an American, upon the soil of the United States, was communicated to Congress at its last session. Murders of a still more atrocious character have been committed in the very heart of Mexico, un der the authority of Miramon’s Government, dur ing the present vear. Some of these were only worthy of a barbarous age; and, if they had not been clearly proven,would have seemed impossi ble in a country which chums to be civilized. Os this description was the brutal massacre in April last, by order of Gen. Marquez, of three American physicians, who were seized in the hospital at Tacubaya while attending upon the sick and the dying of both parties, and without trial, as with out crime, were hurried away to speedy execution. Little less shocking was the recent fate of Ormond Chase, who was shot in Tepic on the 7th of Au gust by order of the same Mexican General, not only without a trial, but w ithout any conjecture by his friends of the cause of li is arrest. He is rep resented as a young man of good character and intelligence, who had made numerous friends in Tepic by the courage and humanity which he had i displayed on several trying occasions, and his death was as unexpected'as it was shocking to the whole community. Other outrages might be en umerated, but these are sufficient to illustrate the wretched state of the country, and the unprotected condition of the persons and property of our citi zens in Mexico. In all these cases our Ministers have been con stant and faithful in their demands for redress ; but both they and this Government, which they have successively represented, have been wholly powerless to make their demands effective. Then testimony in this respect, and in reference to the only remedy which, in their judgments, would meet the exigency, has been both uniform and emphatic. “Nothing but a manifestation of the power of the Government of the United States (wrote our Minister in 1856,) and of ts pur pose to punish wrongs will avail. I assure you that the universal belief here is that, there is noth mg to be apprehended from the Government of the United States, aud that local Mexican officials can commit these outrages upon American citizens with absolute impunity.” “ 1 hope the President * (wrote our present Minister iu August last,) 11 will feel authorised to ask from Congress the power to enter Mexico with the military forces of the United States, at the call ot the constitutional authorities, in order to protect the citizens and the treaty fights of the United States. Unless such a power is con ferred upon him, neither the one nor the other will be respected in the existing state of anarchy aud disorder, aud the outrages already perpetrated will never be chastised; and, as I assured you in my No. 23, all these evils must increase untii every' vestige ol order and government disappears from the country.” I have been reluctantly led to the same opinion, and, in justice to my T countrymen who have suffered wrongs from Mexico, and who may still sutler them, I feel bound to anuouuce this conclusion to Congress. The case presented, however, is not merely a case of individual claims, although our just claims against Mexico have reached a very large amount. Nor is it merely the case of protection to the lives and property ot the few Americans who may still remain iu Mexico, although the life and property of every American ought to be sacredly protected in every quarter of the world. But it is a ques tion which relates to the future, as well as to the present and the past, and which involves, indi rectly at least, the whole subject of our duty to Mexico as a neighboring State. The exercise of the power of the United States in that country to redress the wrongs and protect the rights of our own citizens is none the less to be desired be cause efficient and necessary aid may thus be ren dered at the same time lo restore peace and order to Mexico itself. In the accomplishment of this result the people of the United States must neces sarily feel a deep and earnest interest. Mexico ought to be a rich aud prosperous and powerful Republic. She possesses an extensive territory, a fertile soil, and an incalculable store of mineral wealth. She occupies an important position be tween the Gulf and the ocean for transit routes and for commerce. Is it possible that such a country as this can be given up to anarchy and ruin without an effort irom aDy quarter for its rescue and its safety! Will the commercial nations of the world, which have so many interests connected with it, remain wholly indifferent to such a result? Can the United States, especially, which ought to share most largely in its commercial intercourse, allow their immediate neighbor thus to destroy itself and in jure them? Yet, without support from some quarter, it is impossible to perceive how Mexico can resume liar position among nations and enter upou a career which promises any good results. The aid which she requires, and which the inter ests of all commercial countries require that she should have, it belongs to this Government to ren der, not only by virtue of our neighborhood to Mexico, aloug whose territory we have a continu ous frontier of nearly a thousand miles, but by virtue, also, of our established policy, which is inconsistent with the intervention£of any Euro pean Power in the domestic concerns of that Re public. The wrongs which we have suffered from Mex ico are before the world, and must deeply impress every American citizen. A Government which is either unable or unwilling to redress such wrongs is derelict to its highest duties. The difficulty con sists in selecting and enforcing the remedy. We may, in vain, apply to the Constitutional Govern ment at Vera Cruz, although it is well disposed to do us justice, for adequate redress. Whilst its au dio! ity is acknowledged m all the important ports and throughout the sea coasts of the Republic its power does not extend to the city of Mexico aud the States in its vicinity, where nearly all the re cent outrages have been committed on American citizens. We must penetrate into the interior before we eau reacli the offenders, and this can only be done by passing through the territory in the oc cupation of the Constitutional Government. The most acceptable and least difficult mode of accomplishing the object will be to act in concert with that Government. Their consent and their aid might, I believe, be obtained ; but if not, our obligation to protect our own citizens in their’iust rights, secured by treaty, would not be the less imperative. For these reasons, I recommend to Congress to pass a law authorizing the President, under such conditions as they may deem expedi ent, to employ a sufficient military force to enter Mexico for the purpose of obtaining indemnity for the past and security for the future. I purposely refrain from any suggestion as to whether this force shall consist of regular troops or volunteers, or both. This question may be most appropriate ly left to the decision of Congress. I would merely observe that, should volunteers be selected, such a force could be easily raised in this country among those who sympathize with the sufferings of our unfortunate fellow-citizens in Mexico, and with the unhappy condition of that Republic. Such an accession to the forces of the Constitutional Government would enable it soon to reach the city of Mexico, and extend its power over the whole Republic. In that event there is no reason to doubt that the just claims of our citizens would be satisfied and adequate redress obtained for the injuries inflicted upon them. The Consti tutional Government have ever evinced a strong desire to do us justice ; and this might be secured in advance by a preliminary treaty. It may be said that these measures will, at least indirectly, be inconsistent with our wise and set tled policy not to interfere in the domestic con cerns of foreign nations. Rut does not the present case fairly constitute an exception ? An adjoining Republic is in a state of anarchy and confusionj from which she has proved wholly unable to ex tricate herself. She is entirely destitute of the power to maintain peace upon her borders, or to prevent the incursions of banditti into our terri tory. In her fate and in her fortune—in her pow er to establish and maintain a settled govern ment- we have a far deeper interest, socially, com mercially, and politically, than any other nation. She is now a wreck upon the ocean' drifting about as she is impelled by different factions. As a good neighbor, shall we not extend to her a helping hand to save her? If we do not, it would not be saprising should some other nation undertake the task, and thus force us to interfere at last, under circumstances of increased difficulty, for the main tenance of our established policy. I repeat the recommendation contained in my last annual message, that authority may be given to the President to establish one or more tempo rary military posts across the Mexican line in So nora and Chihuahua, where these may be neces sary to protect the lives and property of Amenean and Mexican citizens against the incursions and depredations of the Indians, as well as of lawless rovers on that remote region. The establishment of one such post at a point called Arispe, in So nora, in a country now almost depopulated by the hostile inroads of the Indians from our side of the line, would, u is believed, have prevented much injury and many cruelties during the past season. A state of lawlessness and violence prevails on that distant frontier. Life and property are there wholly insecure. The population of Arizona, now num bering more than ten thousand souls, are practi cally destitute of government, of laws, or of any regular administration of justice. Murder, rapine, and other crimes are committed with impunity. I, therefore, again call the attention of Congress to the necessity for establishing a Territorial Gov ernment over Arizona. The treaty with Nicaragua of the 16th February, 1857, to which I referred in my last annual mes sage, failed to receive the ratification of the Gov eminent of that Republic, for reasons which I need uot enumerate. A similar treaty has been since concluded between the parties, bearing date on the tilth March, 1859, which has already been ratified by the Nicaraguan Congress. This will be imme diately submitted to the Senate for their ratifica tion. Its provisions cannot, 1 think, fail to be acceptable to the people of both countries. Our claims against the Governments of Costa Rica and Nicaragua remain unredressed, though they are pressed in an earnest manner, and uot without hope of success. 1 deem it to be my duty, once more, earnestly, to recommend to Congress the passage of a law au thorising the President to employ the naval force at his command, for the purpose of protecting the lives and property of American citizens passing in transit across the Panama, Nicaragua, and Te huantepec routes, against sudden and lawless out breaks and depredations. I shall not repeat the arguments employed in former messages in sup port of this measure. Suffice it to say, that the lives of many of our people, and the security of vast amounts of treasure passing and repassing over one or more of these routes between the At lantic and Pacific, may be deeply involved in the action of Congress on this subject. L would, also, again recommend to Congress that authority be given to the President to employ the naval force to protect American merchant ves sels, their crews and cargoes, against violent and lawless seizure and confiscation in the ports of Mexico and (he Spanish American States, when these countries may be in a disturbed and revolu tionary condition. The mere knowledge that such an authority had been conferred, as I have already stated, would of itself, in a great degree, prevent tbe evil. Neither would this require any addition al appropriation for the naval service. The chief objection urged against the grant of this authority is, that Congress, by conferring it, would violate the Constitution—that it would be a transfer of the war-making, or, strictly speaking, the war-declaring power to the Executive. If this were well founded, it would, of course, be conclu sive. A very brief examination, however, will place this objection at rest. Congress possesses the sole and exclusive power, under the Constitution, “to declare war.’’ They alone cau “raise and support armies,” and “pro vide and maintain a navy.” But after Congress shall have declared war, and provided the force necessary to carry it on, the President, as Com mander-in-Chief of the Army and Navy, can alone employ this force in making W’ar against the enemy. This is the plain tan. uage; and history proves that it was the well-known intention of the framers of the Constitution. It will not be denied that the general “ power to declare war ’ is without limitation, and em braces within itse'f not only what writers on the law ot nations term a public or perfect war, but also an imperfect war—and, in short, every species of hostility however coutined or limited! With out the authority of Congress, the President cannot fire a hostile gun in any case, except to repel the attacks of an enemy. It will not be doubted that under this power Congress could, if they thought proper, authorize the President to employ the force at his commaud to seize a vessel belonging to an American citizen, which had been illegally and un justly captured in a foreign port, and'restore it to its owner. But can Congress only act after the fact—after the mischief has been'done? Have they no power to confer upon the President the authority in advance to furnish instant redress should such a case afterwards occur? Must they wait until the mischief has been done; and cau they apply the remedy only when it is too late? To confer this authority to meet future cases under circumstances strictly specified, is as clearly withiu the war-declaring power as such an authori ty conferred upon the Presideut by act of Congress afterjthe.deed had been done. In the progress of a great nation many exigencies must arise impera tively requiring that Congress should authorize the President to act promptly on certain couditions ydiich may or may not afterwards arise. Our his tory has already presented a number of such cases. I shall refer only to the latest. Under the resolution of June 2d 1858, “f>r the adjustments of difficulties with the Republic of Paraguay,” th« President is “authorized to adopt such measures anil use such force as in his judgment may be necessary and advisable in the event of a refusal of just satisfaction by the Government of Paraguay ” “Just satisfaction” for what? For "the attack on the Uni ted States steamer Water Witch,” and “ other matters referred to in the annual message of the President." Here the power is expressly granted upon the condition that the Government of Paraguay shall refuse to render this “just satisfaction,” In I his and other similar cases Congress have conferred upon the President power in advance to employ the army and navy up on the happening of contingent future events; and this most certainly is embraced within the power to declare war. Now, if this conditional and contingent power could be con stitutionally conferred upon the President in the ease of Par aguay, why may it not be conferred for the purpose of pro tecting the lives and property of American citizens, in the event that they may be violently and unlawfully attacked in passing over the transit routes to and from California, or as sailed by the seizure of their vessels in a foreign port ? To deny th'is powe is to render the navy in a great degree useless for the protection ot the lives and property of American cit izens in countries where neither protection nor redress can be otherwise obtained. The Thirty-Uftli Congress terminated on the 3d of March, 1859, without having passed the “act making appropriations for the service of the Post Office Department during the fiscal year ending the 30th June, 1800.” Thus act also contained an anpropriation “to supply deficiencies in the revenue of tlie Post Office Department for the year ending the 30th of June. 1869." 1 believe this is the first instance since the origin of the Federal Government, now more than seventy years ago, when any Congres went out or existence without having pass ed all the general appropriation bills necessary to carry on the Government until the regular period for the meeting of a new Congress. Tins event imposed on the Executive a grave re sponsibility. It presented a choice of eviis. Had this omission of duty occurred at the first session ot the last Congress, the remedy would have been plain. I might then have instantly recalled them to complete their work arid this without expense to the Government . But on the 4th ot March last, there were fifteen of the thirty-three states which had not elected any Representatives to the present Con gress. Had Congress been called together immediately, these States wou d have been virtually disfranchised. If an inter mediate period had been selected, several of the States would have been compelled to hold extra sessions of their Legisla tures, at great, inconvenience and expense, to provide for elec tions at an earlier day than that previously fixed by law. In the regular course, ten of these States would not elect until af ter the beginning of August, and five of these ten not until October and November. On the other hand, when I came to examine carefully the condition of the Post Office Department, I did not meet as many, or as gieat, difficulties a3 I had apprehended. Had the hill which failed been confined to appropriations for the fiscal jft-ar ending on the 30th J une next, there would have been no reason of pressing importance for the call of an extra session. Nothing would become due on contracts (those witli railroad companies only excepted)for carrying the mail • the first quar ter of tli« present fiscal year, commencingon the Ist July, until the Ist of December—less than one week before the meeting oft he present Congress. The reason is, that the mail contrail tors for this current year did not complete the r first quarter's service until the 3H.h of Peptembi r last; and by the terms of their contracts, sixty days more are allowed for the settle ment of their accounts before the Department could be called upon for payment. The great difficulty and the great hardship consisted In the failure to provide tor the payment of the deficiency in the fis cal year ending th» 3)th Juue, 1859. The Department had entered into contracts, in obedience -to existing laws, for the serviceof that fl.-eal year, and the contractors were fairly enti tled to their compensation as it became due. The deficiency as stated in the bill amounted to 13,538,728. but after a care ui settlementof all these accounts, it has been ascertained t hat it araouuts to $4,296 009. With the scanty means at his com mand ttie Postmaster General h is managed to pay that por tion of this deficiency which occurred in the first two quarters of the past fiscal y ar. ending on the 31st December last. In the meantime the contractors themselves, under these trying circumstances, have behaved in a manner wortky of all com mendation. They had one resource in the midst of their em barrassmeu’s. After the amount due to each of them had been ascertained and finally settled according to iaw, this be came a specific debt of record against the United States, which enabled them to borrow money ou this unquestionable securi ty. Still they were obliged to pay interest in consequence of the default ot Congress, and ou every principle of justice ought to receive interest tiom the Government, i his interest should commence from the date when a warrant would have issued iorthe payment of the principal had an apnn priution been made for this purpose. Calculated up to Ist December, it wi.i nor exceed $96,660—a sum not to be taken into account when contrasted with the great difficulties anil embarrassments of a public ami private character, both to the people aud the States, which would have resulted from convening and hold ing a special session of Congress, S' or these reasons I recommend the passage of a bill, at as early a day as may be practicable, to provide for the payment of ttie amount, with interest, due to these last mentioned con tractors, as well as to make the necessary appropriations for ttie service ot the Post Office Department for the current fiscal year. The failure to pass the Post Office bill necessarily gives birth to serious reflections. Congress, by refusing, to pass the gen eral appropriation bills necessary to carry on the Government may not only arrest its action, but might even destroy its exl istence. The army, the mvy, the judiciary, in short, every department of the Government can no longer perform their functions if Congress retuse the money necessary for their sup port. If this failure should ,t< ach the country the necessity of electing a full Congress in sufficient time to enable the Presi dent to convene them in any emergency, even immediately after the old Congress has expired, it •will have been produc tive of great good. In a time of sudden and alarming danger, foreign or domestic, which all nations must expect to encoun ter in their progress, the very salvation of our institutions may be staked upon the assembling of Congress without delay. If, undersuch circumstances, the President should find himself in the condition in which he was placed it the close of the last Coßgress. with nearly half the States of the Union destitute of Representatives, the consequences might be disastrous. 1, therefore, recommend to Congress to carry into eflVel the pro visions of the Constitution ou this subject, and to pass a law appointing some day previous to the 4th of March in each year of (Hid number, for tlie election of Representatives through out all the States. They have already appointed a day for the election of electors for President and Vice Picsident, and this measure lias been approved by the country. I would again express* most decided opii ion in favorof the construction of a Pacific railroad, for the reasons stated in my two last annual messages. When i reflect upon wiiat would lie the defenceless condition of our States and Territories West of the Rocky Mountains, in case of a war with a naval power sufficiently .strong to interrupt all intercourse witli them by the routes across the Isthmus, 1 am still more con vinced than ever of the vast importance of this railroad. I have neverdoubted the constitutional competency of Congress to provide for its cons’ruction, but this exclusively under the war-making power. Besides, the Constitution expressly re quires, as au imperative duty, that “the United Stales shall protect eacli of them | the States] against invasion.” lamat a loss to conceive how this protection can be afforded to Califor nia and Oregon against such a naval power by any other means. 1 repeal the opinion contained in nfiy last annual message, that it would be inexpedient lor the Government to undertake this great work by agei ts of its own appointment, and under its di rect. and exclusive control. This would increase the patronage of the Executive to a dangerous extent, and would fostei a system of jobbing and corruption which no vigilance on the part of Federal officials could prevent. The construction (if this road ought, therefore, to be intrusted to incorporated com panics, or other agencies, who would exercise that active and vigilant supervision over it which can be inspired alone by a sense of corporate and individual interest. I venture to assert that the additional cost of transporting troops, munitions of war, and necessary supplies for the army, across the vast inter vening plains to our possessions on the Pacific coast, would be greater in such a war than the whole amount required to construct the road. And yet this resort would, after all, be inadequate for their defence and protection. We have yet scarcely recovered from the habits of extrava gaut expenditure, produced by our overflowing Treasury, dur ing several years prior to the commencement el my Adminis tration. The financial reverses whicn we have since experien ced ought to teach us all to scrutinize our expenditures with the greatest vigilance, and to reduce them to tae lowest possi ble point. The Executive Departments of the Government have devoted themselves to the accomplishment of this object with considerable success, as will appear from their different re ports and estimates. To these! invite the scrutiny of Con gress tor the purpose of reducing them still lower, ’f this be practicable, consis entwith the great public interests of tiie country. In aid of l he policy of retrenchment I pledge iny self t» examine closely the bills appropriating land or money, so that if any of these should inadvertently pass both houses, as must sometimes t>e tin; c se, 1 m»y afl'or 1 them au opportu nity lor reconsideration. At the same time we ought never to forget that true public economy consists, not in withholding the means necessary to aceompl sh important national objects confided to us by the Constitution, but in taking care that the money appropriated for these purposes shall be faithfully and frugally expended. It will appear from the report of the Secretary of the Treasu ry that it is extremely doubtful, to say the least, whether we shill ire able to pass through the present and the next fiscal year without providing additiona. revalue. •'This ean on y be accomplished by strictly confining the appropriations within the estimates of the different Departments, wi bout making au allowance tor any additional exienditures which Congress tuay think proper, in their discretion, to authorize, and with out providing for the, redemption ot any poroon of the $20,000,- Q( oof Treasury notes which have already been issued. In tiie event of a deficiency, which 1 consider probable, til's ought never tojbe supnlied by a resvrt to additional loans, it would be a ruinous practice in the days of peace aDd prosperity to go on increasing the national debt, to meet the ordinary expenses Os the Government. This would cripple our resournes and im pair our credit in case the existence of war should render it necessary to borrow money. Should such a deficiency oecur asi apprehend, X would recommend that the necessary' reve nue lie raised by an increase of our pr»sent duties on imports. X need not repeat the opinions expressed in my lust aunual message as to the t.est mode and manner of accomplishing this object, and small now merely observe ihat those have since undergone no change. The report of the Secretary of the Treasury will explain, in detail, the operations of that Department of the Government. The receipts into the Treasury from all sources duiing the fisc il year endb g flOth June. 1859, incluoliig the loan author ised by the act of lith June, 1858, and ihe issues of Treas ury uotes authoriz 'd by existing laws, weie eighty-one mil lion s'x hundred and ninety-two thousand four hundred and seventy-one dollars and one cent, ($81,692,471 01,) which sum with the balance of six million three hundred and ninety-eight thousand three hundred and sixteen dollars and ten cents ($6,398,316 10) remaining in the Treasury at the commence ment of that fiscal year, made an aggregate for the service of the year of eighty-eight m lllon niuetv thousand seven hun dred and eighty-seven dollars and eleven cents ($88.090,787 11.) The public expenditures during the tiseal year ending 30th June. 1859, amounted to eighty-three million seven hundred and fifty-one thousand five hundred and eleven dollars and fifty-seven cents ($83,751,511 57.) Os this aunt, sevepteen mil lion four hundred and five thousand two hundred and' eighty five dollars and forty-four cents ♦17,405,-28.' 44) were a plied to tiie payment of interest on the public debt and tiie redemp tion of the issues of Treasury notes. The expenditures for ali other branches of th# public service during that fiscal year were, therefore, sixty-six million three hundred and fortv six aUd <o,la» r/Ste The balance remaining in the Treasury on the Ist July 1859 beiimthe commencement of thepte ent fiscal year/wis W million three hundreu and thirty nine thousand two hundred and seventy-five dollars and fifty-four cents <54.a39 275 M i The receipts into the Treasury during the fi’t quarter of the preseut fiscal year, commencing July Ist, 1859, were twenty million S'X hundred and eighteen thousand eight hundred anS s,xty-five dollars and eighty-five cents, ($20,618,865 85 ) Os this amount three million eight hundred and twenty thousand three bundled dollars (d3.521,8t«) was account of the loan and the issue of ot sixteen million seven hundred and ninety-seven tlmnsa.m five hundred and sixty-five dollars and eight y-fh-ecents rtd6 d 797,565 85) having been receivea during liie quarter & he ordinary sources of public revenue. The estimated receipts tor the remaining three-quarters of the present fiscal year to 80th June, 1860, are fifty million four hundred and twentvLix thousand four hundred dollars ($50.4:>6,400.) Os this amoUrd it is estimated that tire million seven hundred and fifty-six thousand four hundre.i dollars (*5,756,400) will be receive,! for Treasury notes which may be re-issued under the fifth sec turn of tiie act ot 3d March last, and one million one hundred and seventy thousand dollars (*1,i7n,000) on account of the loan authorised by tbe act of June 14th, 18(3-making six mil ! io " a,,<l !, vmit >- ' x thousand lour hundred doll lars 1*6,926,400) from these extraordinary sources, and fortv three millitn hvc hundred thousand dollars <*4.1,600 000) from the ordinary sources of the public revenue—making an aggre gate, with the balance in the Treasury on the Ist July, 1859 of seventy-five mil ion three hundred and eighty-four thousand five hundred and rorty-one dollars and eighty-nine cents (*75 - 334,541 89) for the estimated means of the present fiscal vear ending 80tli June, IsOO. J The expenditures during the first quarter of the present fiscal year were twenty million seven thousand one hundred and seventy-four dollars and seventy-six cents, ($20,007,174 76 ) Four million six hundred and sixty-four thousand three hun dred and sixty-six dollars and seventy six cents ($4,664 366 76) of this sum were applied to the payment of interest on the public debt and there demptiou of the issues of Treasury notes, and the remainder, beiug fifteen million three hundred aud forty-two thousand eight hundred and eight dollars, i#ls 342 . 808,) were applied to ordinary expenditures during the quar ter. The estimated expenditures during the remaining three quarters, to June 3 ah. ISGO. are forty million nine hundred and ninety-five tho’sand five hundred and fifty-eight dollars and tw. nty-three cents, ($40,995,558 23,) Os which sum two million eight hundred and eighty-six thousand six hundred and twen ty-ene dollars and thirty-four cents ($2,889,621 34) are estimat ed for the interest on the public debt. The Ascertained and estimated expenditures for the fiscal year ending 30th June, 1864, on account ot the public debt, are, accordingly, seven million five hundred aud fifty thousand nine hundred and eighty-eight dollars and ten cents, ($7,550,988 10;) andforthe ordinary expenditures of the Government fifty three million four hundred and tifty-one thomand seven hundred and foity four dollars and eighty-nine cents, ($53,451,744 89 ) making an aggregate of sixty-one million two thousand seven hundred and thirty-two dollars and ninety-nine cents, ($61,002,732 99 •) leaving an estimated balance in the Treasury on the 30th June. 1860, o7 fourteen million three hundred ami eighty-one thou sand eight hundred and eight dollais and forty cents, ($14,- 381,808 40.) The estimated receipts during the next fiscal year ending 30th June, IS6I, are sixtv-six million two hundred and twenty five thousand dollars, ($66,225,000.) which, with the balance estimated, as before stated, as remaining in the Xreasury on the 30th June, 1860, will make an aggregate for the service of the next fiscal year of eighty million six hundred and six thou sand eight hundred aud eight dollars and forty cents (SBO 606,- The estimated expenditures during the next fiscal year end ing 30th June, 1861, aresixty-six million seven hundred and fourteen thousand nine hundred and twenty-eight dollars and seventy-nine cents ($66,714,928 79.) Os this amount,three mil lion three hundred and eighty-six thousand six hundred and twenty-one dollars and thirt y-four cent s ($3,386,621 34) will be required to pay ths interest on the pubic debt; leaving the sum of sixty-three million three hundred and twenty-eight thousand three hundred and seven dollars and forty five cents ($63,329,307 45) for the estimated ordinary expenditures dur ing the fiscal j ear ending 30th June, 1861. Upon these esti mates a balance will be left in t he Treasury on the 30tli June, 1861, of thirteen million eight hundred and ninety-one thou sand eight hundred and seventy-nine dollars and sixty-one cents ($13,891,879 61.) But this balance, as well as that estimated to remain in the. Treasury on the Ist July, 1860, will be reduced by such appro priations as shall le made by iaw to carry into effect certain Indian treaties during the present fiscal year, asked for by the Secretary of th Interior, to the amount of five hundred and thirty-nine thousand three |hundied and fifty dollars, ($539,350,) and upon the estimates of tire Postmaster General tor the serviceof Isis Department the last fiscal year, ending 3t)ih June, 1859, amounting to four million two hundred and ninety-six thousand aud nine do'ars, ($4 296,009.) together with the lurther estimate of that officer for the service of the present fiscal year, ending SOIh June, 1860, being five million five hundred ami twenty-six thousand three hundred and twenty-four dollars, ($5,626 324.) making au aggregate of ten million three hundred and sixty one thousaud six hundred and eighty three dollars ($11‘,361,683.) Should these appropriations lie made, as requested by the proper Departments,_ttie balance in the Treasury on the 80th June, 1861, will not, it is estimated, exceed three million five hundred and thirty thousand one hundred and ninety six dol lars and sixty-one cents ($3,530,196 61.) I transmit herewith th. reports ot the Secretaries of War, of the Navy, of the Inteiior, and of the Postmaster General. 'They each contain valuable information and important re commendations well worthy of the serious consideration of Con gress. It will appear from the report of the Secretary of War that tire army expenditures have been materially reduced by a sys tem of rigid economy, which, in his opinion, offeys every guar antee that the reduction will be permanent. The estimates of the Department for the next have been reduced nearly two millions of dollars below the estimates for the present fiscal year, and half a million of dollars below the amount granted for this year at the last session of Congress. The expenditures of the Post Office Department during the past fiscal year, ending on the Soth June, 1859, exclusive of payments for mail service specially prov ded for by Congress out of ♦' general Treasury, amounted to $14,961 493 .23, and its to $7,968,484 07 ; showing a deficiency to be sup plied from the Treasury of $6,996,009 26, against $6,-:35,677 1 5 for the y ear ending 30th June, 1853. The increased cost of transportation growing out of the expansion of the service re quired by Congress explains tins rapid augmentation of the expenditures, it is gratifying, however, to observe an increase of receipts for the year ending on the 30th June, 1859, equal to $481,691 21, compared with those in the year ending on 301 It June. 1858. It is estimated that the deficiency for the current fiscal year will be $5,988,421 04. hut that, for the year ending 30th June, 1861, it will not exc ed $1,342,473 90, should Congress adopt ttie measures of reform proposed and urged bv the Postmaster General. Since the month of March, retrenchments have been made in the expenditures amounting to $ ,826,471 annually, which, however, did not take effect until after the commence ment of the present fiscal year. The period seems to have ar rived for determining the questi n whether this Department shall become a permanent and ever-increasing charge upon the Treasury, or shall be permitted to resume the self-sustaining policy which had so long controlled its administration. The course of leg slation recommended by the Postmaster General for the relief of the Department, from its present embarrass ments, and for restoring it to its original independence, is de serving of your early and earnest consideration. In conclusion, I would again commend to the just liberality of Congress the local interests of the District'of Columbia Surely the city hearing the name of Washington, and des tined, I trust, forages to be the capital of our united free and prosperous Confederacy, has strong claitps on our favo* able regard. JAMES BUCHANAN. W ashinoton City, Dec. 19,1859. t The Rival Candidates.— A Washington corres ; pondent gives tiie following sketch of the rival i candidates for the speakership : i Thomas S. Rocock, of Virginia, the Democratic - candidate for Speaker, is a man of thoroughly nu -1 tional and moderate views, a member of thegreat , est experience in the House, aud one who is uni t versaliy esteemed for the possession of sound - judgment, good temper, great courtesy of manner i very decided abilities, lie is a till aud rath er graceful man, of some forty-eight ,«fty years 1 of age, with aquiline features, a long brown ’ side whiskers aud imperial, mild grey eyes, and a ! plentiful supply of dark chestnut colored hair, ar ranged on his head with considerable adroitness. Os course, in the present controversy, he has no t opportunity to speak ; but it is well understood 7 that he is, at any moment, willing to sacrifice his . personal aims to secure a compromise of all the in- • , terests not, openly or| secretly iu league with the Republican party. , llis chief rival, John Sherman, of Ohio, is a man ' some ten years his junior, of middle height and f nervous figure, with a tine square forehead, light , brown hair, light beard shaven on the upper lip, ; large blueish eyes, prominent perceptive faculties, and features of the ordinary New England mould, with a touch in them of firmness, resolute will and i subtlety. During each ballot, Mr. Sherman ap pears agitated, aud attempts to conceal his ner* ' vousness by taking up a newspaper, which trem bles in his hands as he holds it. , John A. Gilmer, of North Carolina, the South American candidate, is i a large and robust-looking man—much such a man as Senator Toombs in style—with dark thick hair bushing out on all sides of his head, full dark whiskers, curling up round his chin and cheeks, deep set and laughing dark eyes, features irregular, and defying alfclas sic models, but full of strength, and with a general air of good humor and slyness, good breeding and peace of mind, such as it does the eye good to rest upon in this hurried and agitated city. Jones on the Nigger. The Knickerbocker for this month tells a good story, none the less enjoyable for being *pmosiF palpable hit of the way in which “Joney’ the “ clever fellow’’ of a Republican newspapw' estab lishment, “got out” the paper, (The (Unixu) on an occasion of emergency, when the editor who was a lawyer, was detained away from£ome in a law suit. Editor writes to Jones, who was a Dem ocrat, and of course disliked the politics of the sheet: Posey ville, Oct. 2, 1859. Dear Jones: Cau’t come till morning. Get out the best paper you can. Write short articles, and stir up the party for not giving their organs more assistance. £ By the editor. Re emphatic, Jones 1 Touch ’em on the raw! Paper owed its existence to the Republican party Politics its very life blood. Jones had full Dowers" and used ’em. Genius appeared with following editorial from the pen of Jones: The A if/ger —We admire him. We like him. We love him. We go in tor him. We have but one idea, and that is nigger. We have but one dream, and that is ditto. We. preach but one text and that is ditto. We sing but one song, and that is ditto. We play but one tune, aud that is ditto. We go our full length on nigger. We are all over ditto. We are ditto in the morning. We are dit to at night. We are ditto all the time. We live on ditto. We sleep on ditto. We’ll die on ditto And yet, would you believe it, reader, the Genius don’t pay! Next morning enter infuriated proprietor. “You infernal scoundrel!” he roared. Jonesevaporated Stopped by editor just comiug in. “Jones ” savs editor, shaking the paper at him, “Look’ here l what have you done ?” “ Reckon I’ve ‘touched 'em on the raw r ” savs JoDes. ’ ’ } “You’ve killed Ihe paper,” cried the proprietor “ You've ruined me,” exclaimed the editor. “ How did you come to write such a savage arti cle ?” asked the proprietor. 6 “To stir ’em up a little,” says Jones. “The thing's outrageous!” says the'editor. “ It is a little emphatic says joues. Finale. —Rush of Democrats and Republicans to printing ottice. Former exultant, latter savatre beyond bounds. Jones relieved from further as sisting in the editorial department of that paper and set up by Democrats as editor of a new Demo cratic paper then and there started, in view of Jones’ mauifest ability to “stir em up ” and ‘ touch ’em on the raw,’’ K