Crawfordsville Review, Crawfordsville, Montgomery County, 19 December 1857 — Page 1

NEW SERIES--VOL. IX/ ftO. 22.

The President's Message.

Fellow-citizens of the Senate and House 'tf Representatives: In obedience to the command of the Constitution, it has now become my duty "to give to Congress information of the state of the Union, and recommend to their consideration such measures" as I judge to be "necessary and expedient." THANKS GOD FOE THE CROPS, BUT DEPLORES

THE CRISIS, -i

Bttt first, and above all, our thanks are doe to Almighty God for the numerous benefits which He has bestowed upon this people and our united prayers ought to ascend to Him that He would continue to bless our great Republic in time to como, as He has blessed it in time past. Since the adjournment of last Congress our constituents have enjoyed an unusual degrco of health. The earth has yielded her fruits abundantly and has bountifully rewarded the toil of the husbandman. Our great Htaples have commanded high prices, and up till within a brief period, our manufacturing, mineral, and rucchanical occupations have largely partaken of the general prosperity. We have possessed all the elements of material wealth in rich abundance and yet, notwithstanding all these advantages, our country, in its monetary interests is at the present moment in a deplorable condition. In the midst of unsurpassed plenty in all the productions of agriculture and in all the elements of national wealth, we find our manufactures suspended, our public works retarded, our private enterprises of different kinds abandoned, and thousands of useful luborcrs thrown out of employment and rcduccd to want. The revenue of the government, which is chiefly derived from duties or imports from abroad, has been greatly reduced, whilst the appropriations made by Congress at its last session for the current fiscal year arc very large in amount.

A (GOVERNMENT LOAN NECESSARY. "Under these circumstanccB a loan may

he required before the close of your present session but this, although deeply to le regretted, would prove to be only a flight misfortune when compared with the suffering and distress prevailing among the people. With this the government cannot fail deeply to sympathise, though it may be without the power to extend relief.

THE FINANCIAL TROUBLE OWING SOLELY TO TIIE HANKS. It

is

our duty to inquire what has pro­

duced such unfortuuatc results, and whether their recurrence can bo prevented In all former revulsions the blame might have been fairly attributed to a variety of co-operating causes but not so upon the present occasion. It is apparent that our existing misfortunes have proceeded solely from our extravagant and vicious system of paper currency and bank credits, exciting the people to wild speculations und gambling in stocks. These revulsions must continue to recur at successive intervals so long as the amount of paper currency and bank loans and discounts of the country shall be left to tho discretion of fourteen hundred irresponsible banking institutions, which from the very law of their nature will consult the interest of their stockholders rather than tho public welfare. 1'OWF.LL OF CONGRESS OVER THE CURRENCY.

The framcrs of the Constitution, when •they gave to Congress the power "to coin money and to regulate the valtie thereof" and prohibited the States from coining money, emitting bills of crcdit, or making nnythiug but gold and silver coin a tender in payment of debts, supposed they had protected the people against the evils of un excessive and ir^edemable paper currency. They are not responsible for the existing anomaly that a government endowed with the sovcreigu attribute of eoiuing 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 channels of circulation with paper which docs not represent gold and silver.

It is one of the highest and most responsible duties of government to insure to the people a sound circulating medium, the amount of whinh ought to be adapted with the utmost possible wisdom and skill to tho wants of internal trade and foreign exchanges. If this be cither greatly above or greatly below the proper standard, the marketable value of every man's property is increased or diminished in tho same proportion, and injustico to individuals as well as incalculable evils to the community aro tho consequence.

Unfortunately, under the construction of tho federal constitution, which has now prevailed too long to be changed this im portant and delicate duty has beeu dissevered from the coining power and virtually transferred to more than fourteen hundred State banks, acting independantly of cach other, and regulating their paper issues almost exclusively by a regard to the present interost of their stockholders. Exercising the sovereign power of providing a paper currency, instead of coin, for the country, the first duty which these banks owe to the public is to keep in their vaults a sufficient amount of gold and silver to insure the convertibility of their notes into coin at all tunes and under all circuinstances.

No bank "ought ever to be chartered withoutsuch restrictions on its business as to secure this result. All other restrictions arc comparatively vain. This is the only true touchstone, the only efficient regulator of a paper currency.—the only one which can guard the public against over issues and bank suspension. As a collateral and eventual security it is doubtless wise, and in all cases ought to be required, that banks shall hold an^amount of tho United States or State securities equal to their notes in circulation and pledged for their redemption. This, however, furnishes no adequate security against over-issues.— On the "contrary, it mar be perverted to inflate the currency. Indeed, it is possible by this meattsto

of

convert all the debts

tho United States and State government* into bank notes, without

to

reference

the specie required to redeem them.-— HowtTor valuable tbw securities wyw

''if#.-'

in themselves, they cannot be converted into gold and silver at the moment of pressure, as our experience teaches, in sufficient time to prevent bank suspensions and the depreciation of bank notes. In England, which is to a considerably extent a paper-money country, though vastly behind our own in this respect, it was deemed advisable, anterior to the a6t of Parliament in 1844, which wisely separated the issue of notes from the banking department, for the Bank of England always to keep on hand gold and silver equal to one third of its combined circulation and deposits. If this proportion was no more than sufficient to secure the controvertibility of its notes, with the whole of Great Britain, and to some extent the continent of Europe as a field for its circulation, rendering it almost impossible that a sudden and immediate run to a dangerous amount should be made upon it, tho same proportion would certainly be insufficient under our banking system. Each of our fourteen hundred banks has but a limited circumference for its circulation, and in the course of a few days the depositors and note-holders might demand from such a bank a sufficient amount in specie to compel it to suspond, 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 required by its charter to keep this or nnyr other proportion of gold and silver compared with the amount of its combined circulation and deposits. What has been the consequence In a recent report made by the Treasury Department on the condition of the banks throughout the different States, according to returns dated nearest to January, 1857, the aggregate amount of actual specie in their vaults is $58,349,838, of their circulation $1214,778,822, and of their deposits $*230,351,352. Thus it appears 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 convertablc currcncy with all its disastrous consequences.

It is truly wonderful that they should have so long continued to preserve their crcdit, when a demand for the payment of one-seventh of their immediate liabilities would have driven them into insolvency.— And this is the condition of the banks, notwithstanding that four hundred million." of gold from California have flowed in upon us within the last eight years, and the tide still continues to flow indeed, such has been the extravagance of bank credits that the banks now hold a considerable less amount of specie, either in proportion to their capital or to their circulation and deposits combined, than they did before he discovery of gold in California. Whilst in the year 1848 their specie in proportion to their capital was more than equal to one. dollar for four and a half in 1857 it does not amount to one dollar for every six dollars and thirty-three cents of their capital. In the year 1848 the specie was equal within a very small fraction to one in five of their circulation and deposites in 1857 it. is not equal to one dollar in seven and a half of their circulation and deposites.

Froni this statement it is easy to account for our financial history for the last forty years. It has been a history of extravagant expansions in the business of the country, followed by ruinous contractions. At successive intervals the best and most enterprising men have been tempted to their ruin by excessive bank loans of mere paper crcdit, exciting them to extravagant importations of foreign goods, wild speculations and ruinous and demoralizing stock gambling. When the crisis arrives, as arrive it. must, the banks can extend no rerelief to the people. In a vain struggle to redeem their liabilities in spccic they are compelled to contract their loans and their issues and at last, in the hour of distress, when their assistance is most needed, they and their debtors together sink into insolvency.

It is this paper system of extravagant expansion raising the nominal price of every article far beyond its real value, when compared with the cost of similar articles in countries whose circulation is wisely regulated, which has prevented us from competing in our own markets with foreign manufacturers^Juis produced extravagant importations and has counteracted the effect of the large incidental protection afforded to our domestic manufactures by the present revenue tariff. But for this the branches of our manufacture composed of raw materials, the production of our own country—such as cotton, iron, and woolen fabrics—would not only have acquired almost exclusive possession of the home market, but would have created for themselves a foreign market throughout the wc-rld.

Deplorable, however, as may be our present financial condition, we may yet indulge in bright hopes for the future. No other nation has ever existed which could have endured such violent expansions ani contractions of paper credits

Avithout

lasting

injury yet the buoyanoy of youth, the energies of our population, and the spirit which never quails before difficulties will enable us soon to recover frcm our present financial embarrassment and may even occasion us speedily to forget the lesson which they have taught.

DUTY OF GOVERNMENT IN THE CRISIS. In the meantime it is the duty of the government, by all proper means within its power, to aid in alleviating the sufferings of the people occasioned by the suspension of tho banks, and to provide against a recurrence of the same calamity. Unfortunately, in cither aspect of the case it can do but little. Thanks to the independent treasury, the government has not suspended payment, as it was compelled to do by the failure of the banks in 1837.— It will continue to discharge its liabilities to the people in gold and silver. Its disbursements in coin will pass- into circulation, and materially assist in restoring a sound ourreney. From its high credit, should we. ^e compelled to make a temporary loan, ii can be effected on advantageous terms. This, however, shall, if possibjjp, be avoided but, if not then the

amount shall be limited to the lowest practicable sum. I have, therefore, determined that whilst no useful government works already in progress shall be suspended, new works, not already commenced, will be postponed, if this can be done without injury to the country. Those necessary for its defense shall proceed as though there had beEn no crisis in .our monetary afiairs.

•*.

A NATIONAL BANK.

But the federal government cannot do much to provide against a recurrence of existing evils. Even if insurmountable constitutional objections did not exist against the creation of a National Bank, this would furnish no adequate preventative security. The history of the last Bank of the United States abundantly proves the truth of this assertion. Such a bank could not, if it would, regulate ths issues and credits of fourteen hundred State banks in such a manner as to prevent the ruinous expansions and contractions in our currcncy which afflicted the country thro'out the existence of the late bank, or secure us against future suspensions. In 1825 an effort was made by the Bank of England to curtail the issues of the country banks under the most favorable circumstances.

The paper currency had been expanded to a ruinous extent, and the Bank put forth all its power to contract it in order to reduce prices and restore the equilibrium of the foreign exchanges. It accordingly commenced a system of curtailment of its loans and issues, in the vain hope that the joint-stock and private banks of the kingdom would be compelled to follow its example. It found, however, that as it contracted they expanded, and at the end of the process, to employ the language of a very high official authority, "whatever reduction of the paper circulation was effected by the Bank of England (in 1825) was more than made up by the issues of the country banks."

But a Bank of the United States would not, if it could, restrain the issues and loans of the State banks, because its duty as a regulator of the currency must often be in direct conflict with the immediate interests 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 United States would feel the same interest and the same inclination with the directors of the State Banks to expand the currcncy, to accommodate their favorites and friends with loans, and to dcclare large dividends. Such has been our experience in regard to the last bank.

After all, we must mainly rely upon the patriotism and wisdom of the States for the prevention and redress of the evil. If they will afford us a real spccio basis for our paper circulation by increasing the denomination of bank notes, first to twenty, and afterwards to fifty dollars if they will require that the banks shall at times keep on hand at least one dollar of gold and silver for every three dollars of their circulation and deposits and if they will provide by a self-executing enactment, which nothing can arrest, that the moment they suspend they shall go into liquidation. I believe that such provisions, with a weekly publication by cach bank of a statement of its condition, would go far to secure us against future suspensions of specie payments.

A BANKRUPT LAW FOR BANKS. Congress, in my opinion, possess the power to pass a uniform bankrupt law, applicable to all banking institutions throughout the United States, and I strongly recommend its exercise. This would make it the irreversible organic law of each bank's existence, that a suspension of specie payments shall produce its civil death. The instinct of self-preservation would then compel it to perform its duties in such a manner as to escape the penalty and preserve its life. WELL REGULARED BANKS A BENEFIT TO THE

COUNTRY.

The existence of banks and the circulation of hank paper are so identified with the habits of our people, that they cannot at this day be suddenly abolished without much immediate injury to the country. If we could confine them to their appropriate sphere, and prevent them from administering to the spirit of wild and reckless speculation by extravagant loans and issues they might be continued with advantage to the public.

But this I say, after long and much reflection if experience shall prove it to bo impossible to enjoy the facilities which well regulated banks might afford, without at the same time suffering the calamities that the excesses of the banks have hitherto inflicted 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 functions of banks of deposit aud discount.

FOREIGN RELATIONS.

Our relations with foreign governments are, upon the whole, in a satisfactory condition.

GREAT BRITAIN.

The diplomatic difficulties which existed between the government of the United States and that of Great Britain at the adjournment of the last Congress have been happily terminated by the appointment of a British minister to this country, who has been cordially received.

While it is greatly to the interest, as I an convinced it is the sincere desire, of the governments and people of the two countries to be on terms of intimate friendship with each other, it has been our misfortune almost always to have had some irritating, if not dangerous, outstanding question with Great Britain.

Since the origin of the government, we have been employed in negotiating treaties with that power, and afterwards in discussing their true intent and meaning. In this respect, the convention of April 19, 1850, commonly called the Clayton and Bolwer treaty, has been the most unfortunate of all because the two governments place directly opposite and contradictory constructions upon its first and most important article.

Whilst, in the United States, we believe that this treaty would place both powers

upon an exact equality by the stipulation that neither will ever "occupy, or fortify, or colonize, or assume or exercise any do minion" over, any part of Central America, it is contended by the British government that the true construction of this lan guage has left them in the rightful possession of all that portion of Central America which was in their occupancy 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, cither as owner or protector, to the whole extensive coast of Central America, sweeping round from the Rio Hondo to the port and harbor of San Juan dc Nicaragua, together with the adjacent Bay Islands, except the comparatively small portion of this between the Sarstoon and Cape Honduras.

According to their construction, the treaty does no more than simply prohibit them from extending their possessions in Central America beyond the present limits. It is not too much to assert, that 'if in the U. S. the treaty had been considered susceptible of such a construction, it never would have been negotiated under the authority of the President, nor would it have received the approbation of the Senate. The universal conviction in the United States was, that when our government consented to violate its traditional and time-honored policy, aud to stipulate with a foreign government never to occupy or acquire territory in the Central American portion of our own continent, the consideration for this sacrifice was that Great Britain should, in this respect, at least, be placcd in the same position with ourselves. Whilst we have no right to doubt the sincerity of the British government in their construction of the treaty, it is at the same time my deliberate conviction that this construction is in opposition both-to its letter and its spirit.

Under the late administration negotia tious were instituted between the two governments 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 of October, 1856, and was submitted by the President to the Senate on the following 10th of December. Whether this treaty, either in its original or amended form, would have accomplished the object intended without giving birth to new aud embarrassing complications between the two governments, may perhaps be well questioned. Certain it is, however, it was rendered much leas objectionable by the different amendments made to it by the Senate. The treaty, as amended, was ratified by me on the 12th March, 1857, and was transmitted to London for ratification by the British government.

That government expressed its willingness to concur in all the amendments made by the Senate, with the single exception of the clause relating to lluatan, and the other islands of the Bay of Honduras. The article in the original treaty, as submitted to the 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, constituted and declared a free territory under the sovereignty of the said republic

Honduras," stipulated that "the two contracting parties do hereby mutually engage to recognize and respect in all future time the independence and rights of the said free territory as a part of the republic of Honduras."

Upon the examination of this convention between Great Britain and Honduras of the 27th 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 deprived that republic of rights without which its sovereignty over them could scarcely be said to exist. It divided them from the remainder of Honduras, and gave to their inhabitants a separate government of their own, with legislative, executive and judicial officers, elected by themselves. It deprived the government of Honduras of the taxing power in every form, and exempted the people of the islands from the performance of military duty except for heir own exclusive defense. It also prohibited that republic from erecting fortifications upon them for their protection— thus leaving them open to invasion from any quarter and, finally, it provided "that slavery shall not at any time hereafter be permitted to exist therein."

Had llouduras ratified this convention, she would have ratified the 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 ratified the treaty with 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 opposition to the spirit and meaning of the Clayton and Bulwer treaty as understood in the United States, the Senate rejected the entire clause, and substituted in its stead a simple recognition of the sovereign right of Honduras to these islands in the following language "The two contracting parties do hereby mutually engage to recognize and respect the islands of liuatan, Bonaco, Utila, Barbaretta, Helena, and Morat, situate iu the Bay of Honduras, and off the coast of the republic of Honduras, as under the sovereignty and as part of the said republic of Honduras." j-

Great Britain rejected this amendment, assigning as the only reason, that the ratifications of the convention of the 27th of August, 1856, between her and Honduras had not been exchanged owing to the hesitation of that government. Had this been done, it is stated that "her Majesty's government would have had little difficulty in agreeing to the modification proposed by the Senate, which would have had in effect the same signification as the original wording." Whether this would have been the effect whether the mere circumstance of the exchange of the ratifications of the British convention with Honduras prior in point of time to the ratification ofonr treaty with Great Britain would "in effect," have had "the same signification as the original wording," and thus have nullified the amendment of the Senate, may well be'

CRAWFORDSVILLE, MONTGOMERY COUNTY, INDIANA, DEC 19, 1857. WHOLE NUMBER 802.:

doubted. It is perhaps fortunate that the question has never arisen. The British government, immediately after rejecting the treaty as amended, proposed to enter into a new treaty with the United States, similar in all respects to the treaty which they had just refused to ratify, if the United Statss would consent to add to the Senate's clear and unqualified recognition ©f the sovereignty of Honduras over the Bay Islands the following conditional stipulation: "Whenever and as soon as the republic of Honduras shall have concluded and ratified a treaty with Great Britain, by which Great Britain shall

RUSSIA.

taiucd in such treaty." heran by a minister plenipotentiary and I This proposition was, of course, rejected, recommend that an appropriation be made After the Senate had refused to recognize for this purpose.

the British convention with Honduras on the 27th August, 1856, with full knowledge of its contents, it was impossible for me, necessarily ignorant of the "provisions and conditions" which might be contained in a future convention between the same partics, to sanction them in advance.

Had this been done promptly all difficulties in Central America would most probably ere this have been adjusted to the satisfaction of both parties. The time spent in discussing the meaning of the Clayton and Bulwer treaty would have beeu devoted to this praiseworthy purpose and the task would have been

Whilst entertaining these scntimente, I!

shall nevertheless not refuse to contribute I

toanv reasonable adjustment of the Central i«» property. Meanwhile the insurrec'LHMI Hia

American questions which is not ineonsistent with the American interpretation of the treaty. Overtures for thiH purpose have been recently made by the British government in a friendly spirit, which 1 cordially reciprocate but whether this renewed effort will result in success I am not yet prepared to express an opinion. A brief period will determine,

FRANCE.

Our relations with Russia remain, as

they have ever been, on tnc most friendly

The present Lmperor, as well as

footing.

his predecessors, have never failed, when

the occasion ofiercd, to manifest their good

will to our country and their friendship

has always been highly appreciated by the

government States.

the just claims

n,njSH thi,

C()UU/M

d,.nt

and people of the United

With all other Luropean governments, "as

ed'

pending 1

of our

treaty with Spain of the 27th of October, I Weak and feeble States like those of 1795, I earnestly recommend such an ap- Central America, may not feci themselves

propriation to the favorable consideration of Congress. TREATY WITH PERSIA

A treaty of friendship and commerce was concluded at Constantinople on the 13th December, 1856, between the United States and Persia, the ratifications of which were exchanged at Constantinople 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 Shah has manifested an earnest dis-

have ceded, and the republic of Honduras I position to cultivate friendly relations with shall have accepted, the said islands, sub- our countrv, and has expressed strong ject to the provisions and conditions con-

wish

that we should be represented atTc-

CHINA.

Recent occurrcnccs in China have been unfavorable to a revision of the treaty with that empire of the 3d July, 1844. with a view to the security and extension of our

The 2^1 th article of this„trcaty

commerce.

The fact is that when two nations like stipulated for a revision of it in case ex Great Britain and the United States, mutually desirous, as they are, and I trust ever may be,, of maintaining the most friend ly relations with each other, have unfortunately concluded a treaty which they understand in senses directly opposite, the wisest course is to abrogate such a treaty by mutual consent,.and to commence anew.

pcriencc should prove this to he 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, b}' meaus of suitable persons appointed to conduct such negotiations." These twelve years expired on !thc3dJuly, 1850 but long before that period it was ascertained that important changes iu the treaty were necessary and several fruitless attempts were made by the commissioner of the United States to effect these changes.

Another effort was about to be made for the same purpose by our commissioner, in

easily accomplished because the of the two countries in Central America is ,, identical, being eonfincd to securing safe between Great 1 ntam and the Chinese transits over all the routes across the Isth-1 ^niPirc- hese- hostilities have necessailly interrupted the trade ot all nations with

Ca"*?u

conjunction with the minister* of'England the provisions of ibe act of 181S. and France., but this was suspended' 1)? the ^'-'twithataiuling tljcse precautions, tho A JO occurrence- of hostilities iu the Canton riv-1 expedition has escaped lrum our shores.-—

wLlick hl il

°f

1,loc

k:Id1c

and have occasioned a serious loss of life

iwrintik't tlwk nviL'tllirr

tion within the empire against the existing imperial dynasty still continues, aud it is difficult to anticipate what will be the result.

WM. B. KEED's APPOINTMENT AS MINISTER.

Under these circumstances I 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 United States for the place of his destination in July 1st, in the war steamer Minnesota. Special ministers to China have also been appointed by the governments of Great Britain and France.

With France our ancient relations o-f friendship still continue to exist. The French government have in several instances, which need not be enumerated, evinccd a spirit of good-will and kindness towards our country, which I heartily reciprocate. It is notwithstanding, much to bo regretted that two nations whose productions are of such a character as to invite the most extensive interchanges and freest commercial intercourse, should continue to enforce ancient and obsolete restrictions of trade against each other.— Our commercial treaty with France is, in this respect, an exception from our treaties with all other commercial nations. It jealously levies discriminating duties both on tonnage and on articles, the growth, produce, or manufacture of the one country, when arriving in vessels belonging to the ^hr romme^^ of the ,er. oi ,!powers they represent.

Whilst our minister has been instructed to occupy a neutral position in reference to the existing hostilities at Canton, he will cordially co-operate with the British and French ministers, in all peaceful measures to secure by treaty stipulations, those just concessions to commerce, which the nations of the world have a right to expect aud which China cannot long be permitted to withhold. From assurances received, I entertain no doubt that the three ministers will act in harmonious concert to obtain

More than fortv years ago, on the od or March, 1815, Congress passed an act offer- CENTRAL AKD SOUTH AMKRICA. ing to all nations to admit their vessels la- cannot fail to feel a deep interest in dened with their national productions into |a^ that concerns the welfare of the indcthe ports of the U. S., upon the same terms pendent republics on our own continent, as with our own vessels, provided they would

wc^

aa

t'JU empire ot Brazil.

reoiprocatc to us similar advantages. This I NEW GRENADA. act confined the reciprocity to the produc- Our difficulties with New Grenada which tions ot the respective foreign nations who a short time since bore so threatening asmight enter into the proposed arrangements with the United States. The act of May 24, 1828, removed this restriction, and offered a similar reciprocity to all such vessels without reference to the origin of their cargoes. Upon these principles our commercial treaties and arrangements have beeu founded, except with France and let us hope that this exception may not long exist. .... ......

pect, arc, it is to be hoped, in a fair train

j. ue l.suiiiius oi v^cnirni America, niciuu- y*

ing that of Panama, is the great highway

^hmn,

ytatc,. 'f

Ceiitrnl Ainori,n.

rv or )y

towards the settlement of any of the num- people of the United States. I arbitrary manner, which requires redress, erous claims of our citizens against the, Under these circumstances, I rccom- demand for these purposes 'will bo Spanish government. Besides, the outrage mend to Congress the passage of an

committed on our flag by the Spanish war authorizing the President, in case of ne-1 1 his will tho moie probably be granted .f frigate Ferrolena on the high seas, off the cessity, to employ the land and naval force the Lxecuti.e shall Inuc authority to uso Coast of Cuba, in March, 1855, by firing ,_.f the United States to carry into effect {other mean.i in the event ot a refusal.— into the American mail steamer £1 Dorado this guarantee of neutrality aud protection. I his is accordingly recommended. [guarantee and detaining and searching her, remains also recommend similar legislation for unacknowledged and unredressed. Hie (jie security of anv other route across the general tone and temper ot the Spanish isthmus in which we may acquire an integovernmcnt towards that of the United

rest

by treaty

States are much to be regretted. FILLIBL'STERI.W EXPEDITIONS. AUGUSTUS C^ESAR. DODGE TO BE RECALLED.

Our present envoy extraordinary and this continent it is both our duty and our might have relighted the flames of ciiil minister plenipotentiary to Madrid has ask-'interest to cultivate the most friendly re-j war. Besides, at this critical moment, ed to be recalled and it is my purpose to lations. We can never feel indifferent to Kanzas-was lett without a government by send out anew minister to Spain, with spe-! their fate, und must always rejoice in their the resignation of Gov. Geary. cial instructions on all questions

between the two governments, and with a |and for us, our example and advice have determination to have them speedily and lost much of their influence in consequence amicably adjusted, if this be possible. In lof the lawless expeditions which have been the meantime, whenever our minister urges fitted out against some of^ them within the

citizens

able to assert and vindicate their rights.— The case would be far different if expeditions were set on foot within oilr own territories to make private war against a powerful nation. If such expeditions wero 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, wc should call any power on earth to the strictest account for not. preventing such enormities.

Ever since the administration of Gen. Washington, acts of Congress have been in force to punish severely the crime of setting on foot a military expedition within the limits of the United States, to proceed from thence against a nation or State with whom we are at peace. The present neutrality 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 purpose of preventing the carrying on of any such expedition or enterprise from the territories and jurisdiction of the United 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 a part in such lawless enterprises.

WALKER'S ESCAPE FROM NFW ORLEANS.' When it was first rendered probablo that an attempt would be to get up anothor unlawful expedition against Nicaragua,tho Secretary of State issued instructions to the marshals arid district attorneys, which were directed by the Secretary of War and the Navy to the appropriate army and navy officers, requiring them to be vigilant and to use their best exertions in carrying

Such enterprises can do no possible good to the country, but have already inflicted much in jury both on its interests and its character. They have prevented peaceful emigration from the United States to tho States of Central America, which could not fail to prove highly beneficial to all tho pasties concerned. In a pecuniary point of view alone, our citizens have sustained heavy losses from the seizure and closing of the transit mile- by the San Juan between the two occans.

The leader of the rcecnt expedition was arrested at New Orleans, but was discharged on giving bail for his appcaranco iu the insufficient sum of two thousand dollars.

I commend the whole subject to the serious attention of Congress, believing that our duty and interest, as well as our national charactcr, require that wc should adopt such measures as will be effectual in restraining our citizens from committing such outragesPARAGFAY A.VD TIIE NAVIGATION OF THH

LA PLATA.

I regret to inform you that the President of Paraguay has refused to ratify tho treaty between the United States and that State as amended by the Senate, the signature of which was mentioned in the message of my prcdccc-isor to Congress at tho opening of its session in December 1853. The reason assigned for this refusal will appear in the correspondence herewith submitted.

It being desirable to ascertain the fitness of the river La Plata and its tributaries for' navigation- by steam, the United States steamer Water Witch was sent thither for that purpose in 1853. This enterprise was successfully carricd on until February, 1855, when, whilst in the peaceful prosecution of her voyage up the Parana river, the steamer was fired upon by a. Paraguayan fort. The fire was returned but as the Water Witch was of small foroo

an(j I10jdesigned

ot settlement in a manner just and honora- ifjhe retired from the conflict. The pretext bio to both parties.

upon

THE ISTHMUS. decree of tho President of Paraguay, of The Isthmus of Central America, includ- October, 1804, prohibiting foreign vessels river of that was tho owner of but one bank of the rivor of that name, the other belonging to Corrientes, &

war

between the Atlantic and Pacific, over State. As Paraguay, however,

which a large portion of the commerce of the world is destined to pass. The United States arc more deeply interested than any other nation in preserving the freedom land security of all the communications

js.0Hr f] Uiere_

f(J tnl tarc th?t (hcyshftu bcill.

tcrr tcd c-thei.

invasions from our own be he in

Under

,.

our treaty with New Grenada of the 12th December, 184t, we are bound to guaranty the neutrality of the Isthmus of Panama, through which the Panama railroad passes

we]i as

t]ie rights of sovereignty and

cxccpt that of Spain, our relations are as property which New Grenada has and pos peaceful as we could desire. I regret to gesses over the said Territory." This ob .... say that no progress whatever has been ligation is founded upon equivalents grant-1 from them, and havootiierwi.se been treatmade, since the adjournment of Congress,1

fur offensive operations

which the att.wk was made, was a

fi'om navigating the rive

State of the Argentine Confederation, tho right of its government to expect that such. a decree would be obeyed cannot be acknowledged. But the Water Witch waa not properly speaking, a veasel-of-war.— She was a small steamer engaged in a scientific enterprise intended for the advantage of commercial States generally. Un-V dcr these circumstances, 1 am constrained to consider the attack upon her as unjustifiable, and as calling for satisfaction from the Paraguayan government.

Citizens of the United States, also, who a. were established in business in Paraguay, have had their property seized and taken

by the treaty to the government and cd by the authorities in an insulting and

act!"1',dc

prosperity. Unfortunately, both for them On the 10th of February previous, tho territorial legislature had passed a larr providing for the election ot delegates on the third Monday of June to a convention to meet ou the first Monday of September,'

on the notice limits of our country. Nothing is better for the purpose of framing a constitution

of the Spanish government, he is met with [calculated to retard our steady material preparatory to admission into Union.—

the objection that Congress have never progress, or impare our character as a namade the appropriation recommended by tion, than the toleration of such enterprises President Polk in his annual message ot December, 1847, "to be paid to the Spanish government for the purpose of distribution among the claimants in the Amistad case." A similar recommendation was made by my immediate predecessor in his message of December, 1853 and entirely concurring with both in the opinion that AM indemnity is justly doe under the

in violation of the law of nations. It is one of the first and highest duties of any independent State, in its relations with the members of the great family of nations, to restrain its people from acts of hostile agression against their citizens or subjects. The most eminent writers on public law do not hesitate to denounce such hostile acts as robbery and murder.

in a firm but conciliatory spirit,

KANZAS.

It is unnecessary state in detail tho alarming condition of the Territory of Kanzas at the time of my inauguration.— The opposing parties then stood in hostile thcr,

With the most independent republics on array against each other, and any accident

This law was in the main fair aud just and it is to be regretted that all the qualified electors had not registered themselves, and voted under its provisions.

At the time of the election for delegates an extensive organization existed in tho Territory, whose avowed object it was, if need be, to put down the lawful govern-, ment by force, and to establish a government of their own under the so oalled Topcka constitution. The persons attached to thi«