H«SKR VKIl.
FAYETTEVILLE.
TlirUSUAV KVKMMi. UKCEMBER 10, 18§7.
CUNGUKSS.
At noon on .'Monday, it* Senators appoarod in
tbcir sfats. \'ico I’rosidont Brook in rid jrc boin^
nbsont, Mr. Fitzpatrick of Alabama was clootod
Pro.^jiilont pro tnn.
Tlio Senate hold a short oxooutivo so-s.^ioii,coii-
firminjr the nomination of'tJoo. \\'. Howinan, Ksq.,
Kditor of the liodford (IVnn.) dd'ffff, as Supor-
intondont of I’ublic !*rintinp in placc of A. G.
Si-aman, rcniovod.
In tho House of Ileproscntativos 2*21 members
took seats. .Vffer being sworn, the Hon. Jas. L.
Orr was eleeted Spenkor, by •>1 majority over Mr.
Grow of IVih: the Hlack Kepublioan candidate.
The result was received with much apjilauso. Mr.
Orr returned thanks in a brief speech.
lion, .lames I’. Allen, of Illinois, was then
elected clerk: M. W. (’luskey. Ks(|., >f (lOo.,
I’ostmaster; A. J Glossbrenner, of I’t-nnsylvania,
Sergeant-at-Arms; and II H Hnckney, of \ ir-
ginia, Pnorkeopor.
(>n Tuesday tiie I’resident’s nies.sige was read,
as follows:
i^resuJenrs
Fflliiir-rili'en'a of thf Sf untr
(iinf Hoiisf of' /!>pr(‘xcutiitii'i>:
In obedience to the command of the eonsfitu-
tiop, it has U('w beconimc my duty “to give to
(^>ng^ess information of the State of the I'nion,
and recommend to their consideration such mea
sures” as I judge to be “necessary and expedient.”
Mut tirsf, ami above all, our thanks are due to
Almighty (J.ui t’or the numerous benefits which He
has botowed upon this poople; and our united
prayers ought to ascend to Him that he would
c'tntinuc to bless tnir great republic in time to come
as He has blessed it in time pa'^t Since the ad
journment of tht* last (^ongri'ss our eonstituents
have enjoyed an unusual degree of health. The
earth has yielded her fruits abundantly, and has
bouutifully rewarded the toil cf Ihe husbandman.
Uur great staples Invc eoniniaiided high prices,
and, until within a brief perii'd, our manufactur
ing, minorel, and uii'chanical occupations have
largely partaken of the general prosperity. We
have pos.«essed all the elements of material wealth
respect, it was deemed advisable, anterior to the
act of Parliament of 1844, which wisely separated
the issue of notes fiom the banking department,
for the Itank of England always to keep on band
gold and ftilver equal to one third of its combined
circulation and deposits. If this proportion was
no more than sufficient to secure the convertibili
ty of its notes, with the whole of Great Hritain,
and to some extent the continent of Europe, as a
tield for its circulation, rendering it almost im
possible that a sudden and immediate run to a
dangerous amount should be made upon it, the
same proportion would certainly be in.sufficient
under our banking system. Each of our fourteen
hundred banks has but a limited circumference
for its circulation, and in the couse of a very few
days the depositors and note-holders might demand
from such a bank a sufl5cient amount in specie to
compel it to suspend, even although it had coin
in its vaults equal to one-third of its immediate
liabilities. And yet I am not aware, with the
exception of the banks of Louisiana, that any
State bank throughout the Union has been re
quired by its charter to keep this or any other
proportion of gold and silver compared wjth tlie
amount of its combined circulation and deposits.
What has been the consequence? In a recent re
port made by the Treasury Department on the
conditiou of the banks throughout the different
States, according to returns dated nearest to Jan
uary, ISf)!, the aggregate amount of actual specie
in their vaults is §58,349,838, of t'leir circulation
8*J54,T78,S2*2, and of their deposits ?‘230,371,352.
Thus it appeaas that these banks in the aggregate
have considerably less than one dollar in seven
of gold and silver compared with their circulation
and deposits. It was palpable, therefore, that the
very first pressure must drive them to suspension,
and deprive the people of a convertible currency
with all its disastrous consetjuences. It is truly
wonderful that they should have so long continued
to preserve their credit, when a demand for the
payment of one-seventh of their immediate lia
bilities would have driven them into insolvencj’.
.Vnd this is tho condition of the banks, notwith
standing that four hundred millions of gold from
('alifornia have flowed in upon us within the last
eight years, and thtf tide still continues to flow.
Indeed, such ha.s been the extravagance of bank
credits, that tho banks now hold a considerably
less amount of specie, eitlier in proportion to their
capital or to their circulation and deposites com
bined. than they did before the discovery of gold
in (California. W^hilst in the year I84S their
specie in proportion to their capital was more
than equal to one dollar for four and a half, in
1''57 it does not amount to one dollar for every
*ix dollars and thirty-three cents of their capital.
In the year l''tS the specie was equal within a
in rich abundance, and yet, notwithst.inding all j very small fraction to one dollar in five of their
these advantages, our country, in its monetary in
terests, is at tho present moment in a deplorable
condition. In the mid.^t of unsurpassed plenty in
all the elements of national woaith, wc tind our
manufactures suspended, our public works retard
ed, our private enterpri.se.s of different kinds ab;;u-
ded, and thousands of useful laborers thrown out
of employment and reduced to want. The re
venue of the govorumeut, which is chit fly derived
from duties on imports from abr.>a 1, has been
greatly reduce*!, whilst the appropriations made
by Congress at its last sess’.i'U for the current tis-
eal year are very large in amount.
Tnder these circumstances a loan mav be re
circulation and deposites; in 1>^57 it is not equal
j to one dollar in seven and a half of their circula-
1 tion and deposites.
' From this statement it is easy to account for
1 our financial history for the last forty years. It
i has been a history of extravagant expansions in
the business of the country, followed by ruinous
I contractions. At successive interval# the best
j and most enterprising men have been tempted to
, their ruin by excessive bank loans of mere paper
credit, c.^citing them to extravagant importations
I of foreii:n googs, wild speculations, and ruinous
I and demoralizing stock gambling. When the
crisis arrives, as arrive it must, the banks can ex-
quired before the close of your pre.'^cut session; but | tend no relief to the people. In a vain struggle
this, although deeply to be regretted, would prove to redeem their liabilities in specie, they are com-
to be only a >light misfortune when compared with polled to contract tbcir loans and their issues; and
the suffering and distress prevailing among the
people. With this the government cannot fail
deeply to sympathize, though it may be without
the power to extend relief.
It is our duty to in(juirc what has produced
such unfortunate results, and whether their re
currence can be prevented? In all former revul
at last, in the hour of distress, when their a.ssist-
ance is most needed, they and their debtors to
gether sink into insolvency.
It is this paper .system of extravagant expan
sion, raiding the nominal price of every article far
beyond its real value, when compared with the
cost of similar articles in countries whose circu-
sions the blame might have been fairly attributed latiou is wisely regulated, which has prevented us
to a variety of co-operatiag cau.sos; but not so fr^^ni competing iti our own markets with foreign
upon the present occasion. It is apparent that - ii.anufacturers, has produced extravagant^import-
our existing misfortunes have proceeded soklv : unions, and has counteracted the effect of the large
from our extravagant and vicious .system of paper incidental protection afforded to our domestic
currency and bank credits, exciting the people to . manufacturers by the present revenue tariff, liut
wild speculations and gambling in stocks. These for this the branches of our own manufactures
revulsions must continue to recur at succe^sive composed of raw materials, the production of our
intervals so long as the an:ount of the pa[>er cur- own country—such as cotton, iron and woollen
rency and bank loans and di.'count of the country f:‘bric.s—would not only have acquired almost ex-
shall be left to the discretion of fourteen huudred elusive posse.ssion of the home market, but would
irresponsible banking institutions, which from the li^ive created for themselves a foreign market
very law of their nature will consult the interest ' throughout the world.
of their stockholders rather than the public welfare. ; I>cplorable, however, as may be our pre.sent fi-
The framers of the (Jon^'itution, when they nancial condition, we may yet indulge in bright
gave to Congress the power “to coin money and hopes for the future. No other nation has ever
to regulate the value thereof,” and prohibited the existed which could have endured such violent
States from coining money, emitting bills of credit, | e.^pansions and contractions of paper credits with-
or making anything buf gold and silver coin a out lasting injury; yet the buoyancy of youth, the
tender in payment of debts, supposed they had . energies of our population, and the spirits which
protected the people against the evils of an execs- never quail before difficulties, will enable us soon
sive and irredeemable paper currency. They are to recover from our present financial embarrass-
not responsible for the existing anomaly that a nietit, it may even occasion us speedily to forget
gov t endowed with the sovereign attribute of coin- ^he lesson which they have taught
mg money and regulating the value thereof, should
have no power to prevent others from driving this
coin out of the country, and filling up the chan
nels of circulation with paper which does not re-
j'resent gold and silver.
It is one of the highest and most responsible
duties of government to insure to the people a
^ound circulating medium, the amount of which
ought to be adapted with the ntmost wisdom and
>kill to the wants of internal trade and foreij^n cx-
changes. If this be cither greatly above or greatly
>e!ow the proper standard, the marketable value
of every man s property is increased or diminished
in the .>-ame proportion, and injustice to iu'iividu-
als as well as incalculable evils to the community,
are the consequence.
In the meantime, it is the duty of the govern
ment, by all proper means within its power, to
aid in alleviating the sufferings of the people oc
casioned by the suspension of the banks, and to
provide against a recurrence of the same calamity.
Unfortunately, in either aspect of the case, it can
do but little. Thanks to the independent treas
ury, the government has not suspended payment,
as it was compelled to do by the failure of the
banks in 1!^.‘>7. It will continue to discharge its
liabilities to the people in gold ond silver. Its
disbursements in coin will pass into circulation,
and materially assist in restoring a sound curren
cy. From its high credit, should we be compel
led to make a temporary loan, it can be effected
on advantageous terms. This, however, shall, if
I nfortunately, under the construction of the possible, be avoided; but, if not, then the amount
ledcral (Joustitution, which has now prevailed too shall be limited to the lowest practicable sum.
long to be changed, this important and delicate ' I have, therefore, determined that whilst no
duty had been dissevered from the coining power, useful government works already in progress shall
and virtually transferred to more than fourteen suspended, new works, not already commenced,
hundred State banks, acting independently of each postponed; if this can be done without in-
other, and regulating their paper issues almost jury to the country. Those necessary for its de-
exclusively by a regard to the present interest of *cnce shall proceed as though there had been no
their stockholders. Exercising the sovereign pow- crisis in our monetary affairs,
er of providing a paper currency, instead of coin, ' federal government cannot do much to pro-
for the country, the first duty which these banks against a recurrence of existing evils. Even
owe to the public is to keep in their vaults a .sufB- unsuamountable constitutional objections did
cient amount of gold and silver to insure the con- exist against the creation of a National Bank,
vertibility of their notes into coin at all times and ^^*'3 would furnish no adequate preventive secu-
undeT all circumstances. No bank ought ever to ■ history of the last Bank of the U. S.
he chartered without such restrictions on its busi- abundantly proves the truth of this assertion,
as to secure this result. All other restrictions ^uch a Bank could not if it would, regulate the
are comparatively vain. This is the only true jssue and credits of fourteen hundred States Banks
touchstone, the only efficient regulator of a paper such a manner as to prevent the ruinous ex-
currency the only one which can guard the pub- ps^nsions and contractions in our currency which
1C against over-issues and bank suspensions. As Jifflieted the country throughout the existence of
a collateral and eventual security it is doubtless the late Bank, or secure us against future suspen-
wise and in all cases ought to be required, that sions- In 1825 an effort was made by the Bank
uanKs shall hold an amount of L'. States or State of England to curtail the issues of the country
seeuriues c(iual to their notes in circulation, and banks under the most favorable circumstances,
p Cl ge or their redemption. This, however, paper currency had been expanded to a ruin-
lurnishes no adequate security against over issues. | ous extent, and the Bank nut forth all its power
n the contrary, it may be per vented to inflate ! contract it in order to reduce the prices and
be currency. I'J'Jeed, it is po8.-,ible by this means ' restore the equilibrium of the Foreign exchanges.
UovmmLl i L ““J rammencod asjstetn of curtailmeot
t„ il^ without rcforencc ; »f “s ““il issues, in the vain hope that the
n However , joiut stock and private Banks of the kingdom
vaiuatae these Hecurities may be in themselves, would be compelled to follow its examnle It
I ^ l»owever, that as it contracted they expand
the depreciation suspensions and language of a very high official authority, “what-
whieh is t.i o , ■ ■ iV England, j ever reduction of the paper circulation was effect-
coun '‘ r•')' of Engfand (in 1822) wL more
y, t juj,h vastly behind our own in this | tliau made up by the issues of the country banks."
But a Bank of the TI. S. would not, if it could,
restrain tlie i98ue.«i and loans of the State banks,
because its duty as a regulator of the currency
must often be in direct confliet with the immedi
ate interest of its stockholders If we expect one
agent to restrain or control another, their interests
must, at least in some degree, be antagonistic.
But the directors of a bank of the U. S. would
feel the same interest and the same inclination
with the directors of the State banks to expand
the currency, to accommodate thoir favorites and
friends with loans, and to declare large dividends.
Such has been our experience in regard to the la.st
Bank.
After all, we must mainly rely upon the patri
otism and wisdom of the States for the prevention
:ind redress of the evil. If they will afford us a
real specie ba.sis for our paper circulation by in
creasing the denominatiofi of bank notos, first to
20, and afterwards to 850; if they will require
that the banks shall at all times keep on hand at
least one dollar of gold and silver for every three
dollars of their circulation and deposites; and if
they will provide by a self-executing enactment,
which nothing can arrest, that the moment they
SHspenl they shall go into li(|ui«lation, I believe
that such provisions, with a weekly publication by
each bank of a statement of its conditiou, would
go far to secure us against future suspensions of
specie payments.
Congress in my opinion possess the power to
pass a uniform bankrupt law applieal)le to all bank
ing institutions throughout the U. S , and I strong
ly recommend its exercise. This would make it
the irreversible organic law of each bank’s exist
ence, that a suspension of specie payments shall
produce its civil death. Tho insiinct of self-pre
servation would then compel it to perform its du
ties in such a manner as to escape the penalty and
pre.-erve its life.
The existence of banks and the circulation of
bank paper are .so ilentifiod with the habits of our
people, that they cannot at this day be suddenly
abolished without much immediate itijury to the
country. If we could confine them to their appro
priate sphere, and prevent them from administer
ing to the spirit of wild and reckless speculation
by extravagant loans and issuer, they might be
continued with advantage to the public.
But this I say, aficr long and much reflection:
if experience shall prove it to be impossible to en
joy the facilities which well regulated banks might
affonl, without at the same time suffering the ca
lamities which tho excesses of the banks have hith
erto intlicted upon the country, it would then be
far the lesser evil to deprive them altogether of
the power to issue a paper currency, and confine
them to the functii)ns of banks of deposite and
discount.
Our relations with foreign governments are,
upon the whole, in a .satisfactory condition.
The diplomatic dfficulties which exiisted between
the government of the United States and that of
Great Britain at tlie ailjournment of the last con
gress have been happily terminated by the ap
pointment of a British minister to this country,
wno has been cordially received.
Whilst it is greatly to the interest, as I am con
vinced, it is the .sincere desire, of the governnieats
and people of the two countries to be on terms of
intimate friendship with e:ich othor,Mt has been our
misfortune almost always to have had some irrita
ting, if not dangerous, outstanding question with
Great liritain.
Since the origin of the government we have
been employed in negotiating treaties with that
power, and afterwards in di.'scnssing their true in
tent and meaning. In this respect, the (.onvon-
tion of April U>, 1850, commonly called the
j Clayton and Bulwer treaty, has been the most
! unfortunate of all; because the two governments
; place directly opposite and contradictory construc-
I tions upon its first and most important article,
j Whilst, in the United State.s, we believe that this
j treaty would place both powers upon an exact
I equality by the stipulation that neither will ever
“occupy, or fortify, or colonize, or assume or ex
ercise any dominion” over any part of (Central
America, it is contended by the iJritish govern
ment that the true construction of this language
has left them in the rightful posvssion of all that
portion of Central America which was in their occu
pancy at the date of the treaty; in fact, that the
treaty is a virtual recognition on the part of the
United States of the right of Great Britain, either
as owner or protector, to the whole extensive coast
of Central America, sweeping round from the Rio
Hondo the port and harbor of San Juan de Nica
ragua, together with the adjacent Bay Islands,
except the comparatively small portion of this be
tween the Sarstoom and Cape Honduras. Ac
cording to their construction, the treaty does no
more than simply prohibit them from extCMding
their po.ssesions in Central America beyond the
present limits. It is not too much to assert, that
if in the U. S. the treaty bad been considered sus
ceptible of such a construction, it never would
have been negotiated under the authority of the
President, nor would it have received the appro
bation of the Senate. The universal conviction in
the U. S. was, that when our gov’t consented to
violate this traditional and time-honored policy,
and to stipulate with a foreign government never
to occupy or acquire territory in* the Central A-
merican portion of our own continent, the consid
eration for this sacrifice was that Great Britain
should, in this respect at least, be placed in the
same position with ourselvet. W'hilst we have no
right to doubt the sinceerity of the British gov’
in their construction of the treaty, it is at the same
time my deliberate conviction that this construc
tion is in opposition both to its letter and its spirit.
Under the late administration negotiations were
instituted between the two gov’ta for the purpose,
if possible, of removing these difficulties; and a
treaty having this laudable object in view, was
signed at London on the 17th Oct’r, 185G, and
was submitted by the President to the Senate on
the following 10th of Dec. Whether this treaty,
either in its original or amended form, would have
accomplished the object intended without giving
birth to new and embarrassing complications be
tween the two gov’ts, may perhaps be well ques
tioned. Certain it is, however, it was rendered
much less objectionable by the different amend
ments made to it by the Senate. The treaty aa
amended, was ratified by me on the 12th of March,
1857, and was transmitted to London for ratifica
tion by the British Gov’t. That Gov’t expressed
its willingness to concur in all the amendments
made by the Senate with the single exception of
the clause relating to Kuatan and the other is
lands in the Bay of Honduras. The article in the
original treaty, as submitted to tho Senate, after
reciting that these islands and their inhabitants
“having been by a convention bearing date the
27th day of August, 1856, between her Britannic
Majesty and the Republic of Honduras, constitut
ed and declared a free territory, under the sov
ereignty of the said Republic of .Honduras,” sti
pulated that “the two contradicting parties do
hereby mutually engage to recognize aad respect
in all future time the independence and rights of
the said free territory as a part of the Republic
of Honduras.”
Upon an examination of this convention be
tween Great Britain and Honduras of the 27th of
August, 1856, it was found that, whilst declaring
the Bay Islands to be “a free territory under the
sovereignty of the republic of Honduras,” it de
prived that republic of rights without which its
sovereignty over them could scarcely be said to
exist. It divided them from the remainder of Uod-
duras, and gave to their inhabitants a seperate
government of their own, with legislative, evecu-
tive and judicial officers, elected by themselves—
It deprived the government of Honduras of the
taxing power in every form, and ovempted the
people of the islands from the performance of mili
tary duty except for their own exclusive defence.
It also prohibited that republic from erecting forti
fications upon“’them for their protection thus leav
ing them open to invasion from any quarter; and,
finally, it proviled “that slavery shall not at any
time hereafter be permittoil to exist therein”
Had Hondura.s ratified this ct)nvention, she
would have ratified tho establishment of a State
substantially independent within her own limits,
and a State at all times subject to British influence
and control. Moreover, had the United States rati
fied the treaty witl Great Britain in its original
form, we should have been bound “to recognize
and respect in all future time” these stipulations to
the prejudice of Honduras. Being in direct oppo
sition to the spirit and meaning of the Clayton and
Bulwer treaty as understood in the United States,
the Senate rejected the entire clause, and substitu
ted in its stead a simple recognition of the sovereign
right of Honduras to these islands in the following
language;—“The two contracting parties do here
by mutually engage to recognize and respect the
island.! of Knatan, Bonaco, Utila, B.irbaretta, He
lena and Morat, situate in the Bay of Honduras,
and off the coast of the republic of Honduras, as
under the sovereignty and as part of the .said re
public of Honduras.
Great Britain rejeetel this amendment assigning
as tho only reasf>n, that tho ratification of the con
vention of the 27th August, 1756, between her and
Honduras, had not been “exchanged owing to the
hesitation of that government.” Haii this been
done, it is stated that “her Majesty's government
would have had little difficulty in agreeing to
the modification propo.sed by the Senate which then
would have had in cfTect the same signification
as the original wording.” W'^hether this would
have been the effect; whether the mere circum
stance of the exchange of the ratifications of the
Briti.sh convention with Honduras prior in point of
time to the ratification of our treaty with Great
Britain would, “in effect,” have had “the same
signification as the original wording,” and thus
have nullified tho amendment of the Senate, may
well be doubted It is perhap.s, fortunate that the
iuestion has never ri.sen.
The British government, immediately after re
jecting the treaty as amended, proposed to enter
into a new treaty with the United States, similar
in all res[)ccts to the treaty which they had just
refu.sed to ratify, if the United States would con
sent to add to the Senate’s clear and unqualified
recognition of the sovereignty of Honduras over
the Bay Islands the following conditional stipu
lation;—Whenever and so soon as the republic of
Honduras shall have concluded and ratified a
treaty with Great Britain, by which (ireat Britain
shall have ceded, and the republic of Honduras
shall have accepted the saiil islands, subject to
the provisions and conditions contained in such
treaty.”
This proposition was, of course, rejected. After
the Senate had refused to recognize the British con
vention with Honduras of the 27th .\ugust, 1853,
with full knowledge of its contents, it was im-
{•ossible for me, necessarily ignorant of “the pro
visions and conditions” which might be contained
in a future convention between the same parties
to sanction them in advance.
The fact is that when two nations like Great
Britain and the U. S., mutually desirous, as they
are, and I trust ever may be, of maintaining the
most friendly relations with each other, have un
fortunately concluded a treaty which they under
stand in .senses directly opposite, the wisest course
is to abrogate such a treaty by mutual consent, and
to commence anew. Had this been done prompt
ly, all difficulties in Central America would most
probably ere this have been adjusted to the satis
faction of both parties. The time spent in discus
sing the meaning of the Clayton and Bulwer trea
ty would have been devoted to this praiseworthy
purpose, and the task would have been the more
easily accomplished because the interest of the two
countries in Central America is identical, being
confined to securing .safe transits overall the routes
across the Isthmus.
Whilst entertaining these sentiments, I shall
nevertheie.ss not refuse to contribute to any reason
able adjustment of the Central American questions
which is not practically inconsistent with the A-
merican interpretation of the treaty. Overtures
for this purpose have been recently made by the
British gov’t in a friendly spirit, which I cordial
ly reciprocate; but whether this renewed effort will
result in succe.ss I am not yet prepared to express
an opinion. A brief period will determine.
With France our ancient relations of friendship
still continue to exist. The French gov’t have in
several recent instances which need not be enum
erated, evinced a spirit of good will and kindness
towards our country which I heartily reciprocate.
It is, notwithstanding, much to be regretted that
two nations whose productions are of sueh a cha
racter as to invite the mjst extensive exchanges
and freeest commercial intercourse, should conti
nue to enforce ancient and obsolete restrictions of
trade against each other. Our commercial treaty
with Franco is in this respect an exception from
our treaties with all other commercial nations. It
jealously levie.s discriminating duties both on ton
nage and on articles, the growth, produce, or ma
nufacture of the one country, when arriving in
vessels belonging to the other.
More than 40 years ago, on the 3d March, 1815,
Congress passed an act offering to all nations to
admit their vessels laden with their national pro
ductions into the ports of the U. S. upon the same
terms with our own vessels, provided they would
reciprocate to us similar advantages. This act
confined the reciprocity to the productions of the
respective foreign nations who might enter into
the proposed arrangement with the U. S. The act
of May 24, 1828, removed this restriction, and of
fered a similar reciprocity to all such vessels with
out reference to the origin of their cargoes. Upon
these principles, our commercial treaties and ar
rangements have been founded except with France^
and let us hope this exception may not long exist.
Our relations with Russia remain, as they have
ever been, on the most friendly footing. The pre
sent Emperor, as well as his predecesiors, have ne
ver failed, when the occasion offered, to manifest
their good will to our country; and their friendship
has always been highly appreciated by the gov’t
and people of the United States.
With all other European gov’ts, except that of
Spain, our relations are as peaceful as we could
desire. I regret to say that no progress whatever
has been made, since the adjournment of Congress,
towards the settlement of any of the numerous
claims of our citizcHS against the Spanish gov’t.
Besides, the outrage committed on our flag bv the
Spanifh war-frigate Ferrolanaon the high seas, off
the coast of Cuba, in March, 1855, by firing into
the U. S. mail steamer El Dorado, and detaining
and searching her, remains unacknowledged and
unredressed. The general tone and temper of the
Spanish gov’t towards that of the U. S. are much
to be regretted. Our present Minister at Madrid
has asked to be recalled; and it is my purpose to
send out a new Minister to Spain, with special in
structions on all questions pending between the
two gov’ts, and with a determination to have them
speedily and amicably adjusted, if this be possible.
In the meantime, whenever our Minister urges
the just claims of our citizens on the notice of the
Spanish gov’t, he is met with the objection that
Congress have never made the appropriation re
commended by President Polk in his annual mes
sage of December, 1847, “to be paid to the Spa
nish gov’t for the purpose of distribution among
the claimants in the Amistad case.” A similar
recommendation was made by my immediate pre
decessor, in his message of Dec., 1853; and entire
ly soneurring with both in the opinion that this
indemnity is justly due under the treaty with
Spain of Oct. 27, 1795, I earnestly recommend
such an a[>propriatiou to the favorable considera
tion of Congress.
A treaty of friendship and commerce was con
cluded at Constantinople on the 13th, December
’5(), botween the United States and Persia, the
ratifications of which were exchanged at (Constan
tinople on the 13th June, 1857, and the treaty
was proclaimed by the President on the 18th
August, 1857. This treaty, it is believed, will
prove beneficial to American commerce. The
Shih has manifested an earnest disposition to
cultivate friendly relations with our country, and
has expressed a strong wish that we should be
represented at Teheran by a minister plenipoten
tiary: and I recommend that an appropriation be
made for this purpose.
Recent occurrences in China have been un
favorable to a revision of the treaty with that em
pire of the 3d July, 1844, with a view to the .se
curity and extension of our commerce. The 24th
article of this treaty stipulated for a revision of it,
in ease experience should prove this to be requisite;
“in which case the two governments will, at the
expiration of twelve years from the date of said
convention, treat amicably concerning the same,
by means of suitable persons appointed to conduct
such negotiations.” These twelve years expired
on the 3d July, 1856, but long before that period
it was ascertained that important change.s in the
treaty were necessary; and several fruitless at
tempts were made by the commissioner of the U.
States to effect those changes. Another effert
was about to be made for the same purpose by
our commissioner, in conjunction with the minis
ter of England and France, but this was suspend
ed by the occurrence of hostilities in the Canton
river between Great liritain and the Chinese Em
pire. These hostilities have necessarily interrupted
the trade of all nations with Canton, which is now
in a state of blackade, and have occasioned a
serious lo.ss of life and property. Meanwhile the
insurrection within the Empire against the ex
isting imperial dynasty still continues, and it is
difficult to anticipate what will be the result.
Under these circumstances, 1 have deemed it
advisable to appoint a distinguished citizen of
Pennsylvania envoy extraordinary and minister
plenipotentiary to proceed to China, and to avail
himself of any opportunities which may offer to
effect changes in the existing treaty favorable to
American commerce. He left the U. States for
the place of his destination in July last, in the
war steamer Minnesota. Special ministers to
China have also been appointed by the govern
ments of Great Britain and France.
W'hilst our minister has been instructed to oc
cupy a neutral position in reference to the exist
ing hostilities at Canton, he will cordially co
operate with the British and French ministers in
all peaceful measures to secure by treaty stipula
tions, those just concessions to commerce which
the nations of the world have a right to expect,
and which China cannot long be permitted to
withhold. From assurances received, I entertain
no doubt that the three ministers will act in har
monious concert to obtain similar commercial
treaties for each of the doweps they represent.
W’'e cannot fail to feel a deep interest in all
that concerns the welfare of the independent re
publics of our own continent, as well as of the
empire of Brazil.
Our difficulties with New Granada, which a
short time since, bore so threatening an aspect,
are, it is to be hoped, in a fair train of settlement
in a manner just and honorable to both parties.
The Isthmus of Central America, including that
of Panama, is the great highway between the At
lantic and Pacigc, over which a large portion of
the commerce of the world is destined to pass
The U. States are more deeply interested than
any other nation in preserving the freedom and
security of all the communications across the is
thmus. It is our duty, therefore, to take care
that they shall not be interrupted either by inva
sions from our own country or by wars between
the independent States of Central America. Under
our treaty with New Grenada of the 12th Decem
ber, 1846, we are bound to guaranty the neutral
ity of the isthmus of Panama, through which the
Panama railroad passes, “as well as the rights of
sovereignty and property which New Grenada has
and possesses over the said Territory.” This ob
ligation] is founded upon equivalents granted by
the treaty to the government and people of the U.
States.
Under these circumstances, I recommend to
Congress the passage of an aet authorizing the
President, in case*of necessity, to employ the land
and naval forces of the United States to carry in
to effect this guarantee of neutrality and protec
tion. I also recommend similar legislation for
the security of any other route across the isthmus
in which we may acquire an interest by treaty.
With the independent republics on this conti
nent it is both our duty and our interest to culti
vate the most friendly relation. We can never
feel indifferent to their fate, and must always re
joice in their prosperity. Unfortunately, both
for them and for us, our example and advice have
lost much of their influence in consequence of the
lawless expeditions which have been fitted out
against some of them within the limits of our
country. Nothing is better calculated to retard
our steady material progress, or impair our charac
ter as a nation, than the toleration of such enter
prises in violation of the law of nation.
It is one of the first and highest duties of any
independent State, in its relations with the mem
bers of the great family of nations, to restrain its
people from acts of hostile aggression against their
citizens or subjects. The most eminent writers
on public law do not hesitate to denounce such
hostile acta as robbery and murder.
Weak and feeble States, like those of Central
America, may not feel themselves able to assert
and vindicate their rights. The case would be
far dififerent if expedition were set on foot within
our own territories to make private war against a
powerful nation. If such expeditions were fitted
out from abroad against any portion of our own
country, to burn down our cities, murder and
plunder our people, and usurp our government,
we should call any power on earth to the strictest
account for not preventing such enormities.
Ever since the administration of Gen. Wash
ington; acts of Congress have been in force to
punish severely the crime of setting on foot a
military expedition within the limits of the U.
States, to p''oceed from theoce against a nation or
Staee with which we are at peace. The present
neutralitp act of April 20th, 1818, is but little
more than a collection of pre-existing laws. Under
this act the President is empowered to employ the
land and naval forces and the militia “for the pur
pose of preventing the carrying on of any such
expedition or enterprise from the territories and
jurisdiction of the U. States,” and the collectors
of customs are authorized and required to detain
any vessel in port when there is reason to believe
she is about to take part in such lawless enterprises.
When it was first rendered probable that an at
tempt would be made to get up another aoltwfttl
expedition against Nicaragua, the
State issued instructions to the m k “n
triot attorneys, which were direct^Ti
taries of War and the Navy
army and navy officers, requiring iK.
lant, and to use their best exertion
into effect the provisions of the act V"
withstanding these precautions, the '
escaped from our shores,
do DO possible good to the
Such
ms
uu uu guuu lu me country [
ready inflicted much injury both n '
and its character. They have prey ^
emigration from the U. State.,
Central America, which could not f
highly beneficial to all parties eon Jrll?
pecuniary point of view abne, our eit
sustained have losses from
of the transit route by the San Jua^
two oceans.
The leader of the recent expediti.,,.
ed at New Orleans, but was discharjjed*^*
bail for his appearance in the insuffiej
two thousand dollars.
I commend the whole subject to *he
tention of Congress, believing tbat 'o
our interest, as well as our national ch
quire that we should adopt such
be effectual in restraining our citizen-f ’ **'
mitting such outrages. ^
I regret to inform you that the Presd
Paraguay has refused to ratify the treatv l
the United States and that State as ,'
the Senate, the signature of whidi
h
in tit
in the message of my predecessor to e,
the opening of its session in Dec
reasons assigned for this refusal willap^f.^
correspondence herewith submitted
It being desirable to ascertain the fitties
river Lr Plata and its tributaries for navw» '*'
steam, the U. S. steamer
thither for that purpose in 18.53 tu;,
i* 11 *1 .,
was successfully carried on until Feb., 1^55
whilst in the peaceful prosecution of her ^
up the Parana river, the steamer wa.s fire/''*'
by a Paraguayan fort. The was returDe.1- J' '
the Water Witch was of small force, hadV-l
signed for offensive operations, ahe’retired s
the conflict. The pretext upon which the
was made was a decree of the President
guay of Oct., 1854, prohibiting foreign vesstl^J
war from navigating the rivers of that State I
Prraguay, however, was the owner of but*
bank of the river of that name, the other beiot,
ing to Corrientes, a State of the Argentine^
federation, the right of its governraent toer^
that such a decree would be obeyed cannot
knowledged. But the Water Wifr/i wa?
not,p».
perly speaking, a vessel-of-war. She was a
steamer engaged in a scientific enterprise initj-
ed for the advantage of commercial States
ally. Under these circumstances, I am cousin^
ed to consider the attack upon her as unjuatifi«,
and as calling for satisfaction from the ParagaivK
government.
Citizens of the U. S., also, who were establislif.i
business in Paraguay, have had their property
and taken from them, and have otherwise tru!*,
bj the authorities in an insulting and arbitrarr su.
ner, which requires redress.
A demand for these purposes will be madeiajttj
but conciliatory spirit. This will the more probui
be granted if the Executive have authority to useotaS
means in the event of a refusal. This is accoriiiu:
recommended.
It is unnecessary to state in detail the alarmingc»
dition of the Territory of Kansas at the time otmv:i
auguration. The opposing parties then stood in Lf
tile array against each other, and any accident iB:r.
have relighted the flame of civil war. Besides, atm
critical moment, Kansas was left without a goter:
by the resignation of Governor Geary.
On the 19th of Feb’y previous, the territonal lep
lature bad passed a law providing for the election?
delegates on the third Monday of June to a conTesti::
to meet on the first Monday of Sept’r, for th« purf-*
of framing a constitution preparatory to admission
to the Union. This law was in the main fair and jnr
and it is to be regretted that all the qualified elect.!)
had not register«d themselves and voted under its pr.
visions.
At the time of the election for delegates, an en:
sive organization existed in the Territory, ^hoseai'i
ed object it was, if need be, to put down the ltw^.
government by force, and to establish a govemmeLiil
their own under the so-called Topeka constitntis
The persons attached to this revolutionary organa
tion abstained from taking any part in the election
The act of the territorial legislature had omittfiit
provide for submitting to the people the constito
which might be framed by the convention; and io x
excited state of public feeling throughout Kan«u t:
apprehension extensively prevailed that a desi^ a
isted to force upon them a constitution in relatioct
slavery against their will. In this emergency it bt-
came my duty, as it was my unquestionable rigLi. lu'
ing in view the union of all good citizens in support^
the territorial laws, to express an opinion on thetrn
constraction of the provisions concerning slavery c»
tained in the organic act of Congress of the 30th ills.’
1854. Congress declared it to be “the true int«Dtu
meaning of this act not to legislate slavery into uj
Territory or State, nor to exclude it therefrom, boti«
leave the people thereof perfectly free to form and re
gulate their domestic institutions in their own
Under it Kansas, “when admitted as a State,” was #
“be received into the Union, with or without sla»fl7
as their constitution may prescribe at the time of
admission.”
Did Congress mean by this language that the d*!*"
gates elected to frame a constitution should hate W;
thority finally to decide the question of slavery, or
they intend by leaving it to the people that the pwp'*
of Kansas themselves should decide this question bji
direct vote? On this subject, I confess I had ii««’
entertained a serious doubt, and, therefore, in njii"
stnictions to Gov. Walker on the 28th March In: '
merely said that when “a constitution shall be 8ubii:t'
ted to the people of the Tftrritory, they must be pf*"
tected in the exercise of their right of voting fi)'*
against that instrument, and the fair expresiioa of ®
popular will most not be interrupted by fraud or w
lence.”
In expressing this opinion, it was far from dy
tion to interfere with the decision of the people of
sas either for or against slavery. From this I b*’*
always carefully abstained. Intrusted with the W
of Uking “care that the laws be faithfully executeit
my only desire was that the people of Kshsos sW"
furnish to Congress the evidence required by
ganic act, whether for or against slavery; and
manner smooth their passage into the Union-
emerging from the condition of territorial depe““*'"’^
into that of a sovereign State, it was their duty,
opinion, to make known their will by the votei of iw
majority, on the direct question whether this '
domestic institution should or should not .
exist. Indeed, this was the only possible m®*'*
which their will could be authentically ascertaineJ ^
The election of delegates to a convention
From
cessarily take place in separate districts. ^
cause it may readily happen, as has often
ewe, that a majority of the people of a State or i j
ritory are on one side of a question, whilst a ^
,*^_presentatives from the several district*
which it is divided may be upon the other side,
arises from the fact that in some districts ^
may be elected by small majorities, whilst io ®
those of different sentiments may receive maj®' “
sufficiently great not only to overcome the votes g
for the former, but to leave a large majority of
whole people in direct opposition to a
delegates. Besides, our history proves that inuu
may be brought to bear on the representative s ^
ciently powerful to induce him to disregard the w
his constituents. The truth is, that no other
tic and satisfactory mode exists of ascertaining
will of a majority of the people of any State or
tory on an important and exciting question
of slavery in Kansas, except by leaving it to » *
vote. How wise, then, was it for Congress to P ,
over all subordinate and intermediate
proceed directly to the source of all legitin*®^® P
under our institutions!
How vain would any other principle prove in P
tice! This may be illustrated by the case of ■
Should she be admitted into the Union, with a
tution either maintaining or abolishing slavery
the sentiment of the people, this could have jjj,
effect than to continue and to exasperate the
agitation during the brief period required to n>a
ooastitutioB conform to the irresistible will of toe
jority. ,
^tThe friends
fas aet, whei
^i%»in its wise!
"^^V’^mericnn pH
,/‘*nthi9 subjl
they puhlicli
* would cheer!
decision of tl
'w*estriction oj
united upl
‘ ■ ito. which is I
;:^Bar] it then
j^-^fould be a r
the or gar
thereafter t^
V slavery fror
for thatl
^pir constit|
_cted. Ever
bon adopte
^ght of the
jflka and
birly-expre
liMod whcnei
to form
^l»e admitted!
quality witM
^ The convr
V inet on the 1
* ' ^gather by I
" ^re, whose |
‘^Congress in'
A large pr(J
ifliink propel!
lection for
ing been fair!
'©f their righj
Ibe conventij
^ This conv{
l^r Kansas,
; But little d\i
I on the subjej
provisions oi
—ao‘l, I
|>etween thei
Hce of the gj
lion of a terj
lnion as a
^Irust, howei
ferjuiring thj
|>e subject tq
pie of the pr
l#ecasions. Ij
^nnsiis woul
ibunded, as i
Ipstructions I
%>nst itution I
imii unqualil^
In the Ka^
Slent, as ap[
l^en inserted
its terms to
to an electic
■•Stic instit|
olear by a sii
to legislate e
exclude it th|
perfectly freJ
■titutions in
construction
j^itutions” hj
reference to
■lited to the i
■lave and a
of a political I
tion then beJ
any seri|
or the countr
oaestic institi
The conveil
4nally detern
mit the qucsti
iMt forty-thrl
tkeir signatui
A large nia
Mtablishing
aorted an art
liinilar in foi
otter territoJ
over, provldil
a Jtate govei
explicitly ref
bftve a const^
olares that,
oonventioB
iBto the Unid
(•decide thi^
i^abitants
Wtitled to v(J
ballots cast
tntion with
ly.'” If the
WtioQ with s|
• Congress by
original forL
Vajority in fd
**then the arf
on from the
vention;” and
■hall exist in]
right of proj
la no mannei
U made his
transmitted
the admissiui
At this «lt
ttity of expre
KanaaM shall j
oat slavery,”!
poavel'ully s«
Otgauic law.
Biaie author]
■kail refuse
boeu preseHtI
•ad they all
qaeuces.
■Whether
mist eventud
Ml election;
Ij or distincl
‘the present
jscted, she i
•ord, and pol
Make up the!
•gain reach
Kansas ha
public atten^
Noted to far
nutted into
ry, the excit
pass away,
she ought
own affairs i|
tike subject
pleasing to
oan pravent
llod. Under
tioned whetL
try are not
Erary trim
msas.
Should thi
by the votesj
■laves now
of these is vl
vision would]
■laves were
fltitution of
tbeir master^
docided by
try—and thil
■onfederacy
at their joii
suuid that tL
have th« rigl
as property'
■umuiarily ci
in the Territ
joMice, and
of the Unionl
A terriu^rij
bj act of Cl
the constitut
extended ovJ
thereol, ma^l
the uppointc
vice and cot
was to be ej
■ecretary, tl
•hal, and a
vided for tht
extend our l|
tory. brigb
or on the .lUl
since. WhilJ
and superiat
period, he hJ
church culle|
verii its inui
rect iuspirat
power has b^
and iitate.
Kemainc
thii a/Urnc