gsBgswnna I a I I - - eoiian;er.. lion nronoslIlOB wnicrr "in ut 3IIJIIH'- ted lo you F i authority 10 efund the duties and Cnc! the bonds thus received. The provinces ol Canada and New Brunswick have also wnlicipni--d the tult operation of the Ileal; by legislative arrangnn nb prpsf lisely, to atimit Iree oi duty the products of ihe Uniied State men ioned in the fine list ol the liva y, nnd an arr.ogejneut, simi lar to that regarding British fish, h is been mnCe for duties now charg'-able on the products of those provinces enumerated in the same tree list, and introduced iherefrom into the United States ; a proposition for refunding which will, in my judg-irm-bt. be in l.ke manner entitled to your fa vorable cunsnJi r atton. There is difference of opinion between the United States nnd (ireat Britain as to the bound ary line or t lie Territory of VVashington adjoining the British possessions on the Pacific, which bus already led to difficulties on the part of the eili lens and local authorities of the two governments. I recommend that provision be mide for a com mission, to be joined by one on the part of her Britannic Majesty, for the purpose ol running and establishing the line in controversy. Cerain sti pulations of the ihird and fourth articles of the treaty concluded by the United States and Ureal Britain in 1846 regurding possessory rights of th Hudson's B.iy Company, and property of the Puget's Sound Agricultural Coinp.ny. have given rise lo serious disputes, and it is important to all concerned I bat summary aieans ol" setting litem amicably shouid be aV vised. I have reason to believe that an arrangement can be made on just terms for the extinguishment of ihe rights in qu s'ion, m.'ir cing alaa the right of the Hud son's Bay Coanpaay to th navigation of ihe riv r Columbia ; and I therefore suggest lo vur ci deration the expediency af making a contingent appropriation for lhat purpose. France was the early and fficien' ally of the United Stutcs in their struggle for imtepeodnce. From that time to ihe present, wilh occasional slight interruptions, cordjal relations oi friend ship have existed b tween the goverjnol and people of the two countries, Tfce kindly sen'i ments, cherished alike by both nation, have led to extensive social and commercial intercourse, which. I trust, will not be interrupted or checked by any casual event of an apparently unsatisfac tory character. The French consul at San Fran cisco was, not long since, brought into the United States district court at that place, by compulsory process, as a witness in favor of another foreign consul, in violation, as the French government conceives, of his jriiu.'ges under our consular convention with Fr uice. There being no'bj.g in the transaction wl.ich could imply any disrespect to France or its consul, suck explanation h:.s been made as 1 hope will be satisfactory. Subsequent ly , misunderstanding arose on the sul j ct of the French government having, as it appeared, ab ruptly excluded the American minister to Spain from passing through France on his way frum London to Madrid. But that government h is un equivocally disavowed any design to deny the right of transit to tha minister of the United States ; and, after explanations !o this effect, ho has resumed his journey, and actually returned through France to Spain. I herewith lay before Congress the correspondence on this subject be tween. our envoy at Paris and the Minister of for eign relations of the French government. The position of our affairs with Spain rem tins as a: the close of your last session. Internal ag itation, assuming very nearly the character of po litical revolution, has recently convulsed that country. The late ministers were violently ex pelled from power, and m mi of very different views in relation la its internal affairs have suc eeed d. Since this change, there has been no pro pitious opportunity to resume, and press on nego tiations lor the adjustment of serious questions of difficulty between the Spanish government and the United States. Tbere is reason to believe that our minister will find thepresent government favorably inclim d than the proceeding to comply with our just demand, and to make suitable ar rangements for restoring harmony and presening peac5 between the two countries. Negotiations are pending with !) nmark to dis continue the pr;.c'ice of levying tolls on our ves sels and their cargoes passing through the sound. I do not doubt that we can chin exemption there from as a matter of right. U is admitted on all hands, that this exaction is sanctioned, not by the general principles of the law of nations, but only by special conventions, which most of the com mercial nations have entered into with Denmark. The fifth article of our treaty ol 1826, with Denmark, provides that there shall not be paid, on tun vessels of the United States nnd their car goes when passing through the Sound, higher duties than those of the most favored nations. This may be regarded as an implied agreement to submit to the tolls during the continuance of the treaty, and, consequently, may embarrass the as sertion of our right to be rejensed therefrom. There are also other provisions in the treaty which ought to be' modified. It was to remain in force for ten years, and until one year after either party should give notice to the other of intention to ter minate it. I deem it expedient that the contem plated notice shiudd be giyen to the government of Denmark. The nival expedition despatched about two years since for the purpose of establishing rela tions wjih the empire of Japan, has beeu ably and skilfully conducted to a successful termination fu tile officer to whom it was intrusted, A treaty opening certain of tbe poits of that populous country has been negotiated; and in order to give full effect thereto, it only remains to exchange ratifications, aud adopt requisite commercial regu lations. The treaty lately concluded between the United States and Mexico settled some of our most em barrassing diffjcultits with that country, but nu merous claims upon it for wrongs and injuries to our citizens remained unadjusted, and many new cases have been recently added to the former list of grievances. Our legation has been earnest in its endeavors to obtain from the Mexican gov ernment a favorable consideration of these claims, but birtierto without success. This failure is, probably, in some measure, to be ascribed to the disturbed condition of that country. It has been my anxious desire to maintain friendly relations with the Mexican republic, and to cause its rights and territories to be respected, not only by our citizens, but by foreigners, who have resorted to the United States for the purpose of organizing hostile expeditions against some of the States of that Republic. The defenceless condition in which its frontiers have been left, has stimulated lawless adventurers to eiubnrk in these enterprises, and greatly increased the difficulty of enforcing our obligations of neutrality. Regarding it as my solemn duty to fulfil, efficiently, these obligations, not only towards Mexico, but other foreign na tions, I have everted all the powers wiih which I m invested to defeat such oriminal proceedings, and bring to punishment 'hose who, by taking a part therein, violated our lws. The energy and activity of our civil and military authorities have frustrated the designs of th" who meditated ex peditions of this character, except in two instances. One of these, composed of foreigners, wjs at first countenanced and aided by the Mexican govern ment itself, it having been deceived as to their real object. The other, small in number, eluded too vigilance of the magistrates at San Francisco, and succeeded in reaching the Mexican territories; but the effective measure taken by this govern ment compelled the abandonment of the under taking. The commission to establish the new line be I tween the United Slates and Mexico, according to 'the provision of the treaty of theSOth of Decern ! ber last, has been organized, and the work is ah ! ready commenced. Our treniies with the Argentine Confederation, ' nnd with the Republic of Uruguay and Paraguay, ! secure lo us the free, navigation of the river La i Plata, and some of its larger tributaries ; but I be same success bas not attended our endeavors to ' open the Amazon. The reasons in favor id the j Iree use ol that river, I had ocean ion to present ' lully, in a former message; and, cr.suh ring the I eordi.il relations, which have long exis'ed between this government and Brazil, it may be expected ; that pending negotiations will, eventually, reach a ' favorable result. Convenient means ol transit, between the seve ral parts of a country, are in t only desirable for the olj cts of comm rci il und personal commu ! uication, but essential to its existence under one government. Separated as are the tlaniic and Pacific coasts of the United Slates by the whole breadth of the continent, still ihe inhabitants of each are closely bound together by community ol origin and insti'utions, and by strong attachment to the Union. Hence I be constant nnd increasing ioterc uise, and vast interchange of commercial productions, between these remote divisions of lhr Republic. Al the present time, the most pracii cable and oidy commodious routes for communi cation between them are by the way of the Isthmus of Central America. Jt js ihe duty ol the govern or nt to si cure these av nues against all danger ol interruption. In lelate n to Central A merica, perplexing ques tions xited between the United States and Great IJr'i.un at the lime of the c ssion of California. These, as well as quesions which sobs qmntfy , arose concerning inter-oceanic communication across the Isthmus, were, as it was supposed, ad justed ' the treaty of April 19, 1850; lu', unfor tunately, they Imve been re-opened by seiious ; misunderstanding as to the import of some of its provisions, a re adjustment ofwh-ch is now under j consideration. Our minister at London has made j strenuous ejfoi ts to accomplish thjs desirable ob ject, Ifcit has not yet found i: possible to bring the negotiations to a termination. As incidental to these questions, I deem it proper lo notice an occurrence which happened in Central America, near the close of the last session jf Congress. So soon as the necessity was per ceived of establishing inter oceanic communica tions across the Isthmus, a company was organ ized, under authority of the State pf Nicaragua, but composed, for the most part, of citizens of the United Stales, for the purpose of opening such a transit way, by the river Sun Juan and Lake Nicaragua, which soon became an eligible and much used route in the transportation of our citi z ns and their property between the Atlantic and Pacific. Meanwhile, and in anticipation of the completion and importance of tins transit way, a number of adventurers had taken possession of the old Spanish port at the mouth of the river i San Juan, in open defiance of the State or Statee of Central America, which, upon their becoming independent, had rightfully succeeded to tue local sovereignty and jurisdiction of Spain. These ad venturers undertook to change the name of the place from S la Juan del Norte to Grey town, and, thoui at fust pretending to act as tbe subjects of the fictitious sovereign of the Musquito Indians, i they subsequently repudiated tbe control of any ; power whatever, assumed to adopt a distinct po I litical organization, and declared themselves an independent sovereign State. If, at some time, a faint hope was entertained that they might become a stable and respectable community, that hope soon vanished. They proceeded to assert un founded claims !o civil jurisdiction over Punta Arenas, a position on the opposite side of the river San Juan, which was in possession, under a li' le wholly independent of them, of citizens of the United States, interested in the Nicaragua Transit Company, and which was indispensably necessary to the prosperous operation of that route across the Isthmus. The company resisted their ground less claims ; whereupon they proceeded to destroy some of its buildings, and attempted violenty to dispossess it. At a later period they organized a strong force for the purpose of demolishing the establishment at Punta Arenas, but this mischievous design was defeated by the interposition of one of our ships of war, at that time in the harbor of San Juan. Subsequently to this, in May last, a bodv of men from Grey town crossed over to Punta Arenas, arrogating outhority to arrssi, on the charge of murder, a captain of one of the steamboats of the Transit Company. Being well aware that the claim to exercise jurisdiction there would be re sisted then, as it had been on previous occasions, they went prepared to assert it by force of arms. Our minister to Central America happened to be present on that occasion. Believing 'hat tbe cap- j tain of the steamboat was innocent, for he wit j nessed the transaction on which the charge was j founded, and believing, also, that the intruding j party, having do jurisdiction over the place where I they proposed lo ma'xe the arrest, would encoun j fer desperate resistance if they persisted in their : purpose, he interposed, effectually, to prevent j violence und bloodshed. The American minister afterwords visited Greytown, and whilst he was j" there a mob, including certain of the so-called j public functionaries of the place, surrounding the , house in which he was, avowing that they had , come to arrest him by order oi some person ex ercising the chief autorny. While parleying with them, he was wounded by a missile from the crowd. A boat, despatched from ihe American steamer M Northern Light " to release him from the perilous situation in which he was understood i to be, was fired into by the town guard and c.om ! pelled to return. These incidents, together with ! the known character of the population of Grey, j town, and iheir excited state, induced just appre , hensions that the lives and properly of our citi ' zliis at Punta Arenas, would be in imminent j danger after the departure ol (he steamer with i her passengers for New York, unless a guard was j left lor their protection. For this purpose, and in : order to insure the safety of passengers and prop- er'y passing over the route, a temporary force was organized tit considerable expense to the j United States, for which provision was made t j the last session of Congress. This pretended community a heterogeneous , assemblage, gathered from various coun'nes, and j composed for the most part of blacks and persons j of mixed blood had previously given other indi j cations of misch'evous and dadgerous propensi j ties. Early in the same month, property was clandestinely abstracted from the depot of the j Transit Company and taken to Greytown. The piuuuerers ouinineu sneuer mere, an! their pur suers were driven back by its peoole, who not only protected the wrongdoers and shared the plunder, but trated with rudeness and violence those who sought to recover their properly. Such, in substance, are the facts submitted to my cons. deration, and proved bp trustworthy evi dence. I could not douU that the case demanded the interposition of this Government. Justice required that reparation should be made for so many and such gross wrongs, and that a course v of insolence and plunder, tending directly to the insecurity of the lis of numerous travellers, and nf the rit-b treason a rxdoiiu n" to our citizens. passing over this transit way, should b peremp- tonlv arrmied. Whatever it might be in other resprcts, the community in question, in power to rent fiscal year are not likely to equul in amount do mischief, was not despicable. I; was well pro- j those of tbe last, yet they will undoubtedly ex vided with ordnance, small arms and ammunition. ceed the amount of xpepditures by at least fifteen and might easdy seize on the unarmed boats, , millions of dollars. 1 shall, therefore, continue freighted with millions of property, which passed to direct that the surplus revenue be applied, so lmni dailv uiihin it rnrh li did not nrofess i tar as can be judiciously and ecunomicallv done. to belong to buy regular government, nnd had, in fact, no recognisi d dependence on or connexion j w hich, at the commencement of the last fiscal with any one to which the United Stales or their year, was sixty-seven millions three hundred and iijured citizens might apply for redress, or which I lirtrly th wsand six hundred and twenty-eight dol could be held responsible in any way for the out- ' lars ; of which there had been paid on the twen rages ex mmiiled. Not standing before the world j ti. th day of November, 1854, the sum of twenty in the attitude of an organiz d political society, j two millions three hundred and sixty-five thousand being neither competent to exercise the rights nor j one hundred and seventy-two dollars ; leaving a to discharge the obligations of a government, it j balance of outstanding public tlebt of only forty was in fact a marauding establishment, too dan- ) four millions nine hundred ami seventy-five thou gerous to be disregarded, and too guilty to pass j sand four hundred and fifly-six dollars, redeem- unnunished, and yet incapable ol being treated in any other way than as a piratical resort ol out- j laws, or a camp of savag s, depredating on emi- j grant trains or caravans and the frontier settle- ments of civilized Stales. Seionablc notice was given to the people of Grey town ihnt this Government required them to repair the injuries they had done to our citizens and to make suitable apology for '.heir insult of our Minister, and that a sbip-of-war would be despatched thither to enforce compliance with these demands. But the notice passed unheeded. Thereupon a commander of the navy, in charge of the sl-.op of-war " Cyane," was ordered to repeat the demands, and to insist upon a compli ance therewiih. Finding that neither the popu lace, nor those assuming to have authority over them, manifested any disposition to make the re quired reparation, or even loolfer excuse for their conduct, he warned ihem, by a public proclama tion, that il they did not give satisfaction within a time specified, he would bombard the town. By this procedure he afforded them opportunity lo provide for their personal safety. To those also who desired to avoid loss of property in the pun- ishment about to town, he furnished be indicted on the offending the means of removing their effects by the boats of his own sbip, and of a steamer which he procured and tendered to ihem for that purpose. At length, perceiving no dis position on the part of the town to comply with his requisitions, he appealed to the commander of her Brittanic Majesty's schooner " Bermuda," who was seen to have intercourse, and apparently much influence, with the leaders among them, lo interpose and persuade them fo take some course calculated to save the necessity of resorting to the extreme measure indicated in his proclamation; but that officer, instead of acceding to the request, did nothing more than to protest against the con templated bombardment. No steps of any sort were ft: ken by the people to give the satisfaction required. No individuals, if any there were, who regarded themselves as not responsible for the misconduct of the community, adopted any means to separate themselves from the fate of the guilty. The several charges on w hich the demands for redress were founded had been publicly known to all for some time, and were again announced to them. They did not deny any of these charges ; ihey offered no explanation nothing in extenua tion of their conduct; but contumaciously refused to hold any intercourse with the commander of i the " Cyane." By their obstinate silence they ! seemed rather desirous to provoke chastisement than to escape it. There is ample reason to be- lieve that this conduct of wanton defiance on their part is imputable chiefly to the delusive idea that the American Government would he deterred from punishing them through fear of displeasing j a formidable foreign Power, w hich they presumed to tbmk looked wiih complacency upon their ag gressive and insulting deportment towards the United Stales. The "Cyane" ot ieng'h fired upon the town. Before much injury hnd been done, the fire was twice suspended, in order to afford opportunity for an arrangement, but this was dedined. Most of the buildings of the place, ol little value generally, were, in the sequel, de stroyed, but, owing to the considerate precautions taken by our naval commander, there was no destruction ol life. When the ' Cyane " was ordered to Central America, it was confidently hoped and expected lhat no occasion would arise for "a resort to vio lence and destruction of proper.y and loss of lile." Instructions to that effect were given to her commander ; and no extreme act would have been requisite had not the peonje themselves, by iheir extraordinary conduct in the affair, frustrated all the possible mild measures for obtaining satis faction. A withdrawal from the place, the object ol his visit entirely defeated, would, under the circumstances in which the commander of the Cyane found himself, have been absolute abandon ment of all claim of our citizens for indemnifica tion, and submissive acquiescence in national indignity. It would have encouraged in these lawless men a spirit of insolence and rapine most dangerous to the lives and property of our citizens at Punta Arenas, and probably emboldened them to grasp at the treasures and valuable merchan dise continually passing over the Nicaragua route. It certainly would have been most satisfactory to me if the objects of the "Cyane's" mission could have been consummated without any act of public lorce ; but the arrogant contumacy of the offend- ers rendered it impossible to avoid the alternative, either to break up their establishment, or to leave them impressed with the idea that they might per severe with impunity in a career of insolence and plunder. This transaction has been the subject of com plaint on the part of some foreign powers, and has been characterized wiih morn of harshness lhan of justice. If comparisons were to be insti tuted, it would not be difficult lo present repeated instances in the history of States, standing in the very front of modern civilization, where commu nities, far less offending and more defenceless than Greytown, have been chastised wiih much greater severity, and where not cities only have been laid in ruins, but human life has been reck lessly sacrificed, and the blood of the innocent made profusely to mingle with lhat of the guilty. Passing from foreign to domestic affairs, your attention is naturally directed to the financial con dition of the country, always a subjJct of general snterest. bor complete and exact information regarding the finances, and the various branches ol the public service connected tnerewith, I refer you to the report ol the Secretary of the Treasu ry ; from which it will appear, that the amount of revenue during the last fiscal year, from all sources, was seventy-three millions five hundred and forty-nine thousand seven hundred and five dollars; and that the public expenditures for the same period, exclusive of payments on account of! corresponding consideration was not bestowed on the public debt, amounted to fifty-one millions the officers, who, in view of their character and eighteen thousand two hundred and forty-nine ; services, and ihe expenses to arh'ch ihey art dollars. During the same period, the payments ! necessarily subject, receive at present what is, in I made in redemption of the public debt, including mieresi anu premium, amounted to twenty-four i me vaiuaoie services constantly renaerea oy manners, producing injury or death to passenrers miliums three hundred and thirty-six thousand ; he Army, and its inestimable importance, as the j on the high seas, beyond the jurisdiction of hUv of three hundred and eighty dollars. To the sum j nucleus around w hich ihe volunteer forces of the the States, and where such delinquencies can" be total of the receipts of that year is to be added a ! nation can promptly gather in the hour of dagger, ; reached only by the power of Congress ? The whole balance remaining in tbe Treasury af Use com- j sufficiently attest ihe wisdom of maintaining a subject is earnestly commended to your considera tions ment thereof, amounting to t wenty. one mil- ; mdilary peace establishment ; but the theory of tion. lions nine hundred and forty-two thousand eight I our system and the wise practice under it, require j The report of the Postmaster General to which hundred and ninefy-two dollars; and at ihe close 'hat any proposed augmentation, in lime of peace, you are referred for many interesting details in re of the same year, a corresoondina balance amount- I be only commensurate with our extended limits lation to this important arid rapidly extendintr.r-.iieh' ing lw nty millions one hundred and thirty-seven 1 thousand nine hundred and sixty seven dollars of ! receipts above xnendi'ures. also remained in the j Treasury . Ai. hough m the opiniou of the Sec- ! rotary of the I reasury, the 'tceipts of the cur- I to the reduction of the public debt, the amount of I sana lour imnurca able at different able at uinerent penocs wnnin tourieen years. There are also remnants of other government stocks, most of which arc already due, and on which the interest has ceased, but which have not yet been presented for pay ment, amounting to two hundred and thirty-three thousand one hundred and seventy-nine dollars. This statement exhi bits the fact, that the annual income of the Gov- j ernment greatly exceeds the amount of its public debt, which latter remains unpaid, only because the time of payment has not yet matured, and it cannot be discharged at once, except at tho option of public creditors, who prefer to retain the S' cu rilies of the United States ; and the other fact, not less striking, that the annual revenue from all sources exceeds, by many millions of dollars, the amount needed for a prudent and economical ad ministration of the Government. The estimates presented to Congress from the different Executive Departments, at the last ses sion, amounted to thirty-eight million lour hun dred and six thousand five hundred and eighty one dollars ; and the appropriations made, lo the sum of fifty-eight million one hundred and sixteen thousand nine hundred and fifty-eight dollars. Of this excess of appropriations over estimates, however, more than twenty millions was applica ble to extraordinary objects, having no reference to the usual annual expenditures. Among these objects, was embraced ten millions to meet the third article of the treaty between the United States and Mexico ; so that, in fact, for objects of ordinary expenditure, tne appropriations were limited io considerably less lhan forty millions of dollars. I therefore, renew my recommendation for a reduction of the duties on imports. The report of the Secretary of the Treasury presents a series of tabies, showing tbe operation of the revenue system for several successive years', and as the general principle of reduction of duties wilh a view to revenue and no; protection may now be regarded as the settled policy of the country, I trust that little difficulty will be en countered in settling the details of a measure to that effect. In connexion with this subject, I recommend a change in the laws, which recent experience has shown to be essential to the protection of the government. There is no express provision of law, requiring the records and papers of a public character, of t he several officers of the government, lo be left in their offices for the use of their suc cessors, nor any provision declaring it felony on their part to make false entries in (be books, or return false accounts. In the absence of such express provision by law, the outgoing officers, in many instances, have claimed and exercised ihe right to trade into thrdr own possession, important books and papers, on the ground that these were 'heir private property ; and have placed them beyond the reach of the government. Conduct of this character, brought in Several instances to the notice of ihe present Secretary ol the Treasu ry, naturally awakened his suspicion, nnd resulted in the disclosure fliat at four ports, namely, Os wego, Toledo, Sandusky, and MilwaUkie, the treasury had, by false entries, been defrauded, within the four years next preceding March, 1853, of the sum of one hundred and ninety-eight thou sand dollars. The great difficulty with which the detection of these frauds bus been attended in consequence of the abstraction of books and papers by the retiring officers, and the facility wilh which similar frauds in the public service may be per petrated, render the necesity of new legal enact ments, in the respects above referred to, quite ob vious. For other material modifications of the revenue laws which seem to me desirable, I refer you to the report of the Secretary of the Treasury. That report, and the tables which accompany it, furnish ample proofs of the solid foundation on which the financial security of the country rests, and of the salutary influence of the independent treasury system upon commerce and ul! monetary operations. The experience of the last year furnishes ad ditional reasons, I regret to say, of a painful char acter, for ihe recommendation heretofore made, to provide for increasing (ho military force employed in the territory inhabited by the Indians. The settlers on the frontier have suffered much from the incursions of predatory bands, and large parties of emigrants fo our Pacific possessions have been massacred with impunity. The recurrence of such scenes can only be prevented by teaching these wild tribes the power of, and their responsi bility to, the United States, brom the garrisons of our frontier posts, it is only possible to detach troops in small bodies ; and though these have on all occasions displayed a gallantry and a stern de votion to duty, which on a larger field would hav ? commanded universal admiration, they have usual ly suffered severely in these conflicts with superior numbers, and have someiiines been entirely sacri ficed. All the disposable force of the army is already employed on this service, and is known to be wholly inadequate to the protection which should be afforded. The public mind of the country has been recently shocked by save.ge atrocities committed upon defenceless emigrants and border settlements, and hardly less by tha unnecessary destruction of valuable lives, where inadequate detachments of troops have undertaken to furnish th 2 needed aid. Without increase of the military foice, these scenes will be repeated, it is to be feared, on a larger scale, and with disastrous con- sequences, congress, t am sure, win perceive j that the plainest duties and responsibilities of gov- ernment are involved in this question, and I doubt not that prompt action may be confidently antici pated when delay must be attended by such fear ful hazards. The bill of the last session, providing for an in crease of the pay of the rank and file of the army has had beneficial results, not only in facilitating enlistments, but in obvious improvement in the class of men who enter the service. I regret that my judgment, inadequate compensation. and fron'icr relations. While scrupulous? y ad- hering to this principle, 1 find, in existing circum stances, a necessity for increase of our military i force, and it is believed that four new rrgtmcnts, tti rA III lintrv onil fn ..f mounted men. will ue 1 n o v v i iiikiioi f uuu - --- sufficient to meet the present . Agency, il were necessary carefully to weigh the cost in a case of such urgency, it would be shown thai the ad ditional expense would be comparatively light. With the increase of the numercial force of the army shouid, I think, be combined certain mea surcs of reform In its organic arrangement und ad ministration, ihe present organization is tne re sult of partial legislation often directed to special objects and interests ; and the laws regulating rank and common, having been adopted many years ago from the Biitish code, are not always applicable to our service. It is not surprising, therefore, that tho system should be deficient, in the symmetry and simplicity essential to the har monious working oi its several parts, und require a careful revision. The present organization, by maintaining large staff corps or departments, separates many offi cers from that close connection with troops, and those active duties M. the field, which are deemed requisite to qualify them for the varied responsi bilities of high command. Were the duties of the army staff mainly discharged by officers detached from their regiments, it is believed lhat the special service would be equally well performed, and the discipline and instruction of ihe army be iinproy ed. While due regard to the security of the rights of officers, and to the nice sense of honor should be cultivated among them, would seem to exact compliance with ihe established rule of promotion in ordinary oases, still it can hardly be doubted that the range of promotion by selection, which is now practically confined to the grade of general officers, might be somewhat extended wilh benefit to the public service. Observance of thp rule of seniority sometimes leads, especially in time of peace, to the promotion of officers who, after meritorious and even distinguished service, may have been rendered by age or infirmity incapable of performing active duty, and whose advancement, therefore, would tend to impair the efficiency of the army. Suitable provision for this class of of ficers, by the creation of a retired list, would re- medv the evil, without wounding the just pride of i . . i J , men who, by past services, have estab ished a v , , . uiaiui to nign consiaeranon. in again commend ing this measure to the favorable consideralion of Congress, I would suggest that the power of plac ing omcors on the retired list oe limited to one year. The practical operation ol the measure would thus be tested, and if, afier, the lapse of years, there should be occasion lo renew the pro vision, it can be reproduced with any improve ment which experience may indicate. The pres ent organization of ihe artillery into regiments is liable to obvious objections. The service of ar tillery is that of batteries, and nn organization of batteries into a corps ol artillery would be more consistent with the nature of their duties A large , - . . . ... part of the troops now called artille ry are , and have been, on duty as infantry ; the distinction between the two arms being merely nominal. This nominal artillery in our service is entirely disproproiionate to the whole force, and greater lhan the wants of ihe country demand. 1 there lore commend ihe discontinuance of a distinction, which has no foundation in either the arms used or the character of the service expected to be performed. In connection with the proposition for the in crease of the army, I have presented these sug gestions with regard to certain measures ol re- j form, as the complement of a system, which j would produce the happiest results from a given j expenditure, and which I hope may attract ihe i early attention, and be deemed worthy of the ap- proval ot Longress. The recommendation of ihe Secretary of the Navyj having reference lo more ample provisions for i he discipline and general improvement in the character of seamen, and for the re-organization and gradual increase of the Navy, I deem emin ently worthy of your favorable consideration. The principles, which have controlled our policy in relation to the permanent military force, by sea and land, are sound, consistent with the theory of our system, and should by no means be disturbed. But limiting the force to the objects particularly set forth in ihe preceding part of this message, we should not overlook the present magnitude and prospective extension of our commercial marine, nor fail to give due weight to the fact, besides the two thousand miles of Atlantic seaboard, we have now a Pacific coast, stretching from Mexico to the British possessions in tho North, teeming with wealth and enterprise, and demanding the constant presence of ships of war. The augmentation of the Navy has not kept pace with the duties pro perly and profitably assigned to it in time of peace, nnd it is inadequate for t lie large field of its op erations, not merely in the present but still more in the progressively increasing exigencies of the wealth and commerce of the United States. 1 cordially approve of the proposed apprentice sys tem for our national vessels, recommended by the Secretary of the Navy. The occurrence, during the last few months, of marine disasters of ihe most tratjic nature, involv ing great lost of human life, has produced intense emotions of sympathy and sorrow throughout the country. It may well be doubted whether all these calamitious events are wholly attributable lo the necessary and inevitable dangers of the sea. Tbe merchants, mariners, and ship-builders of the United Slates are, it is true, unsurpassed in far reaching enterprise, skill, intelligence and cour age, by any others in tho wot Id. Bui1, with the increasing amount of our commercial tonage in the aggregate, and the larger size and improved equipment of the ships now constructed, a defi ciency in the supply of reliable seamen begins to be very seriously felt. The inconvenience may, perhaps, be met, in part, by due regulations for the introduction, into our merchant ships, of in dented apprentices; which, while it would afford useful and eligible occupation to numerous young ; men, would have a tendency to raise the charac j ter of seamen as a class. And it is deserving of j serious reflection, whether it may not be desirable to revise the existing laws for the maintenance of j discipline at sea, upon which the security of life j and property on the ocean must to so"great an ex- tent depend. Although much attention has at ; ready been given by Congress to the proper con- struclion and arrangement of steam vessels and all passenger ships, still it is believed that the achievments of science ?nd mechanical skill in j this direction have not been exhausted. No good I reason exists for the marked distinction, which ; appears upon our statutes between the laws for i protecting life and property at sea, and those for protecting Ihem on land. In most of. the States j severe penalties are provided to punish conductors of trains, engineers, and others employed in the j transportation of persons by railway, or by steam : boats -on rivers. Why should not the same i,rmr.;. J pie be applied to acts of insubordination, cowardice or other misconduct on the part of masters and j of the public service, shows that the expenditure of tbe vear endiner June 30. lftr.i dred" and thirty-three thousand fOUr De W eighty-three dollars of balance due to f "Undr w amounting to eight million seven hnAJ ' t UOMI1U J1111V 11U1IUI L H Hi I ven dollars lei toss reeoints durinrr tha :mA mj.j six million nine hundred and fifty-five tho2l hundred and eighty-sL dollars:" exhibiti!" 5, penditnre over income of one million sevni and fifty-five thousand three hundred and one dollars, and a diminution of deficiency lt?' pared with the hwt year, of three hundred'an? one thousand seven hundred and fifty-sir a:- - . . . . ly 1 1-1 II w I the year ending June 30, 1854, over the py: year, was nine nunorea ana seventy thousand ' hundred and ninety-nine dollars. propon increase, however, can be anticipated for year, in consequence of the act of Congsg rf 't OS ISriJ. urovidinor for increased -v, x -- ""'lasat),,, all postmasters. From these statements it is to ent that the Post Office Department, instead rf fraying its expenses, according to the desi at time of its creation, is now, and under exists i must continue to be, to no small extent, a i' upon the general treasury. The cost of mail tr portation, during the year ending June 30, exceeds the cost of the preceding year by fcur' dred and ninety-five thousand and MrcM? dollars. I again call your attention to die. si of mail transj ortati on by ocean steamers, and mend the suggestions of the Postmaster Gtasi your early attention. During the last fiscal year eleven million sereat thousand nine hundred and thirty -five acres ui public lands have been surveyed, and eight mill, one hundred and ninety-thousand and seventy acres brought into market. The number of sold is seven million thirty-five thousand seven W dred and thirty-five, and the amount received tU for nine million two hundred and eighty-lite tl, sand five hundred and thirty-three dollars. aggregate amount of lands sold, located under m. it. -try scrip and land warrants, selected as swa, lands by States, and by locating under grani (, roads, is upwards of twenty-three millions of The increase of lands sold, over the previous year, about six millions of acres ; and the sales dttrffittL ; i- 1 u e traordtnary result of hve r i j e exceeding ly nearly four two hrst quartets ot the current year present thvn- ling by nearly four millions of acres the a of the corresponding quarters of the last year, tW increasing to an extent unjiaralled during any hi period in our past history the amount of revsm provided from this soun-e for the Federal Trojan The eommernbibh' noliev nf flin lnrammai L . j .vIIHIHL.l relation to setting apart public domain for tha who have served their country in time of w;ir, t illustrated by the fact ; that since 1790 no thirty millions of acres have been applied u.Vu object. The suggestions, which I submitted in my annual message of la-st year, in reference to grants of lan, in aid of the constructions of railways, wore km fu and explicit, than the magnitude of the subject nj subsequent developments would seem to ren.l proper and desirable. Ut tho soundness of t principle then asserted with ygard to the liniit:iti: of the power of Congress, I entertain no doubt; U: in its application it is not enough that, the value f lands in a particular locality may be enhanced; dm in fact, a larger amount of money may probably g received, in a given time, for alternate sections, thai could have been renriscd for all the sections, withnot the impulse and influence of the proposed mum ments. A prudent proprietor looks beyond limits sections of his domain, beyond present result, totlw ultimate effect which a particular line of polKj likely to produce upon alibis possesstom awi terests. The government, which is trustee, M ai matter, for the, people of the States, is booaitetab the same wise and comprehensive view. Priom and during the last session of Co;igrss, BBSna t thirty millions of acres of land were, withdrawn fm public sale with a view to applications! for grass tl this character pending before Congress, A careful review of tho whole sulij'ci W m to direct that all such orders be abrogated, and ibt lands restored to market ; and instructions en immediately given to that effect. The applica tions at the last session contemplated the coiulmc-tion- of more than five thousand miles sf an and grants to the amount of nearly Isjreatf B lions of acres of the public domain. Even ic mitting this right on the part of Congress lob unquestionable, it is quite clear that tbe propws grants would be productive of good, and not mi.' The different projects are confined, for ihe p sent, to eleven States of the Union, and one T ritory The reasons assigned for tbe gw"i show that il is proposed to put the works ffdilf in process of construction. When we nfK. that since the commencement of the construct: of railways in the United Stales, sMmutaitdii they have been by the largfi dividends realist from the earlier works over the great lliorii; fares, and between the most important poinM commerce and population, encouragi d by Si legislation, and pressed forward by the amazi. energy of private enterprise, only seventeenth sand miles have been completed in all the S in a quarter of a century ; when we see ine Pf pled condiiion of many works commenced a"1" prosecuted upon what were deenrvd to be sou principles, and safe calculations ; when t& template the enormous absorption of capital drawn from the ordinary channels of busiW the extravagant rates of interest at this pf paid to continue operations, ihe bankrupt not merely in money, but in character, and'11 inevitable effect upon finances generally ; c be doubled that the tendency is torunloW' in this matter ? Is it wise to augment slF by encouraging hopes of sudden wealth eipW to flow from magnificent schemes depended J the action ol Congress ? Does the P'r'l'f. has produced such results, ncd to be s,MD"i or checked ? Is it not the better rule to le"e these works to private enterprise, regulate,1 when expedient, aided, by the co operaU State ? If constructed by private capital stimulant and check go together, and forni'' salutary restraint against speculative schema iaa extravagance. But it is manifest that,"'"1.1 most effective guards, there is danger ol g0" too fast and loo far. We may well pause before a proposition coo plating a simultaneous movement for the c00! tion of railroads, which, in extent, w ill c1ual,I sive of the great Pacific road and all its br nearly oae-third the entire length of such now completed, in the United States, and cannot cost, with equipments, less than one buw and fifty millions of dollars. The dangers W result from combinations of interests of this f actor, can bnrdlv ll nvor ftinmted. . ' J ' - thp K curate Knowledge, tbe comprehensive B which shall discriminate between the relative curate knowledge, the comprehensive '" ... - . Jm ' Wlll.li r. t . , , I I ,i..w. .... 1 . , , Wi It 90 of these 28 nrooosed roada. in eleven 4 where end ? If to enable these companies w cute their proposed works, it is necessary tn aid of the general government be primarily J. the policy will preseut a problem so coniprrjjj in its bearings, and so important to ou-.P?'1 ft social well being, as to claim, in anticip&J severest analysis. Entertaining these views, w ith satisfaction to the exqerience and action last session of Congress, as furnishing ftSsUf")1in, the subject will not fail to elicit a toheit a careiu. .v nation and rigid scrutiny. Tt wa mv irtritj-.r in TrAsenL On tfllS - " T -' w i. ,.--. ... ..v -- - j , - '.. r 1 mllttill'1 some Suggestions regarding iuierui i

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