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however, in 1#54, serious disputes eoncerning the settle- ! ment of their accounts had arisen between at and the government, threatening the interruption of the Toute at any moment. These the United States in vain endeavored to compose. It would be useless to narrate the various proceedings which took place between the parties, up till the time when the transit was discontin- ved. Saffice it to say that, since February, 1856, it has remained closed, creatly to the prejudice of citizens of the United States. Since that time the competition has ot between the rival routes of Panama and Ni consequence thereof, an unjust and unreasonable ut has been exacted from our citizens for their pas- to and from California. A treaty was signed on the IGih day of November, by the Secretary of State and minister of Nicaragua, under the stipulations of which the use and protection of the transit route would have been secured, not only to the United States, but equally to all other nations. How aud on what pretexte this treaty has failed to receive the latification of the Nicaraguan government, will appear by their settlement ought not to be longer newed and earnest, and I trust a successful effort, made by our minister to procure their On the 2d of June last, Congress passed tion authorizing the President ‘to adopt and use such force as, in his judgment, may be and advisable’’ “for the purpose of adjusting the differ- ences between the United States and the of Para- guay, in connexion with the attack on the United States steamer Water Witch, and with other measures referred to’’ in his annual message. And on the 12th July fol- lowing, they made an appropriation to defray the ex- and compensation of a commissioner to that re- public, should the President deem it proper to make such an appointment. In compliance with these enactments, 1 have appointed ® commissioner, who has proceeded to Paraguay, with full powers and instructions to settle these ditierences in an amicable and peaceful manner, if this be practicable. His experience and discretion justify the hope, that he may the papers herewith communicated from the State De- Fartment. The principal objection seems to have been, to the provision authorizing the United States to employ force to keep the route open, in case Nicaragua should tail to perform her duty in this respect. From the fee- bleness of that republic, its frequent changes of govern. ment, and its constant internal dissensions, this had be- come a most jmportant stipulation, and one essentially necessary not only for the security of the route, but for the safety of American citizens passing and repassing to and from our Pacific possessions. Were such a stipula- tion embraced in a treaty between the United States and Nicaragua, the knowledge of this fact would of itself most Probably prevent hostile parties from committing ag gressions on the route, and render our actual interference for Its protection unnecessary. The executive government of this country, in its inter- course with foreign nations, is limited to the employment of When this fails, it can proceed no It cannot legitimately resort to force, without the direct authority of Congress, except in resisting and sepelling hostile attacks. It would have no authority to enter the territories of Nicaragua, even to prevent the destruction of the transit, and protect the lives and prop- erty of our own citizens on their passage. It is true, that on a sudden emergency of this character, the President would direct any armed force in the vicinity to march to their relief ; bat in doing this he would act upon his own responsibility Under these circumstances, I earnesily recommend to Congress, the passage of an act authorizing the President, under such restrictions as they may deem proper, to 1 ploy the land and naval forees of the United States in preventing the transit from being obstructed or closed by lawless vielence, and in protecting the lives and prop- erty of American citizens travelling thereupon, requiring at the same time that these forces shall be withdrawn the moment the danger shall have passed away. With- out such a provision, our citizens will be constantly ex- posed to interruption in their progess, and to lawless violence. A similar necessity exists for the passage of such an act, for the protection of the Panama and Tehuantepec routes. {tn reference to the Panama route, the United States, by their existing treaty with New Granada, expressly guarantee the neutrality of the Isthmus, ‘with the view that the free transit from the oue to the other sea may not be interrupted or embarrassed in any future time while this treaty exists.” In regard to the Tehuantepec route, which has been re- cently opened under the most favorable auspices, our treaty with Mexico of the 30th December, 1853, secures to the citizens of the United States a right of transit over it for their persons and merchandise, and stipulates that neither government shall rpose any obstacle” there- to. Italso concedes to the ted States the “right to tramsport across the Isthmes, in closed bags, the mails of the United States not intended for distribution along the line of the cummunication ; also, the eifects of the Uni- ted States government and its citizens which may be in- tended for transit, and not for distribution on the Isth mus, free of custom-house or other charges by the Mexi- can government."” treaty stipalations with ) Granada and Mexi- eo, in addition to the considerations applicable to the Nicaragua ronte, seem to require legislation for the pur- ‘yirg them into efiect. The injuries which have been inflicted upon our ci zens in Costa Rica and Nicaragua, during the last two or three years, have reecived the prompt attention of this government. Some of these injuries were of the most aggravated character. The transaction at Virgin Bay in | April, 1956, when a company of unarmed Americans, | who were in no way connected with any belligerent con- duet or party, were fired upon by the troops of Costa Rica, and numbers of them killed and wounded, was brought tu the knowledge of Congress by my predecessor soon after its occurrence, and was also presented to the | government of Costa Kica, for that immediate investiga- | tion aad redress which the nature cf the case demanded. | A similar course was pursued with reierence to otber out- rages in these countries, sume of which were hardly Tess | wated in their character than the transaction at Vann Bay. At the time, however, when our present | minister to Nicaraza was appointed, in December, 1357, no redress had been obtained for any of these wrongs, | aud no reply even had been received to the demands | | our iudustry. prove successful in convincing the Paraguayan govern- ment, that it is due both to honor and justice, that they should voluntarily and promptly make atonement for the wrongs which they have committed against the Uni- ted States, and indemnity our injured citizens whom they have forcibly despoiled of their property. Shonld our commissioner prove unsuccessful, after a sincere and carnest effort, to accomplish the object of his mission, then no alternative will remain, but the employ- ment of force to obtain “just satisfaction’ from Para- guay. In view of this contingency, the Secretary of the y, tnder my directi has fitted out and despatched 4 naval force, to rendez near Buenos Ayres, which, it is believed, will prove sufficient for the occasion. It is my earnest desire, however, that it may not be found necessary to resort to this last alternative. When Congress met December last, the business of the country had just been crushed, by one of those peri- odical revuisions, which are the inevitable consequence of our unsound and extravagant system of bank credits and the treasury notes authorized by the act of December 23, 1857, were seventy million two and seventy- ‘three thousand hundred and sixty-nine dollars and fifty-nine cents, ($70,273,869 59,) which amount, with the balance of seventeen million seven hundred and ten thousand one hundred and fourteen dollars and twenty- seven cents ($17,710,114 27) remaining in the treasury at the commencement of the year, made an aggregate for the service of the year of eighty-seven million nine hun- three dollars and eighty-six cents, ($87,983,983 86.) The public expenditures during the fiscal year ending Jane 30, 1858, amounted to eighty-one million five bun- dred and -five thousand six hundred and sixty- seventy-six cents, ($81,585,667 76,) of which nine million six hundred and eighty-four thou- sand five hundred and thirty-seven dollars and ninety- nine cents ($9,684,537 99) were applied to the payment of the public debt, and the redemption of treasury notes with the interest thereon, leaving in the treasury on July 1, 1858, being the commencement of tho present fiscal year, six million three hundred and _ninety-eight thou- sand three hundred aud sixteen dollars and ten cents, ($6,398,316 10.) ‘The receipts into the treasury, during the first quarter of the present fiscal year, commencing the Ist July, 1858, including one-half of the loan of twenty millions of dol- lars, with the preminm upon it, authorized by the act of 1th Jane, 1858, were twenty-five million two hundred and thirty thousand eight hundred and seventy-nine dol- lars and forty-six cents, ($25,230,379 46,) and the esti- mated receipts for the remaining three quarters to the 30th June, 1859, from ordinary sources, are thirty-eight million five hundred thousaud dollars, ($38,500,000,) making, with the balance before stated, an aggregate of seventy million one hundred and twenty-nine thousand one hundred and ninety-tive dollars and fifty-six cents, ($70,129,195 56.) ‘The expenditures, during the first quarter of the pres- ent fiseal year, were twenty-one million seven hundred inflated currency. With all the elements of national wealth in abundance, our manufactures were suspended, our useful public and private enterprises were arrested, and thousands of laborers were deprived of employment and reduced to want. Univers: distress prevailed amoung the commercia!, manufacturing, and mechanical classes. This revulsion was felt the more severely in the United States, because similar causes had produced the de- plorable effects throughout the commercial nations of Europe. All were experiencing sad reverses at the same and eight thousand one hundred and ninety-eight dollars and fifty-one cents, ($21,708,198 51:) of which one mil- fon and ten thousand one hundred and forty-two dollars and thirty-seven cents ($1,010,142 37) were applied to the payment of the public debt aud the redemption of treasury notes and the interest thereon. The estimated expenditures, during the remaining three quarters to 30th June, 1859, are fifty-two million three hundred and fifty-seven thousand six hundred and nincty-eight moment. Our manufacturers everywhere suffered severe- ly, not because of the recent reduction in the tariff of du- ties on imports, but because there was no demand at any price for their productions. Ne were obliged to restrict themselves, in their purchases, to articles of prime necessity. In the general prostration of business, the trou manufacturers in different States probably snfered more than any other class, and much destitution was the inevitable consequence, among the great number of work- men who had been employed in this useful branch of There could be no supply where there was no demand. To present an example, there could be no demand for railroad iron, after our magnificent system of railroads, extending its benefits to every portion of the Union, had been brought toa dead pause. ‘Te same con- sequences have resulted fom similar causes to many other brauches of useful manofuctures. It is self-evi- dent that where there is no ability to purchase manufac- tured articles, these cauact be sold, and consequently must cease to be produced. No government, and especially a government of such limited powers as that of the United States, could have prevented the late revulsion. ‘The whole commercial world scemed for years to have been rushing to this a tastruphe. ‘The same ruinous cousequences would have followed in the United States, whether the duties upon foreign imports fad remained as they were under the tarittof 1846, or Lact been raised to a much higher stand- ard. The tariff of 1857 hal no agency in the result. The general causes existing throughout tae world, could not have been coutrolied by the legislation of any par- ticular country. ‘The periodical revulsions whieh have existed in our Past history, must continue to return at intervals, so long us our present unbounded system of bank. credits shall jwevail. They will, however, probably be the less severe in iuture ; because it is not to be expected, at least for | j many years to come, that the commercia! nations of Eu- te vith whose interests our own are so materially in- volved, will expose themselves to similar calamities. But this subject was treated so much at large in my last annual message that I shall not now pursue it further. | Still, 1 respectfully renew the recommendation, in favor of the passage of a uniform bankrupt law, applicable to bank- ing institutions. This is all the power over the subject which, I believe, the federal goverument possesses. Such a law would mitigate, though it might uot prevent the evil. ‘The instinct of self-prescrvation might produce a wholesome restraint upon their banking business, if they knew in advance, that a suspension of specie payicnte would inevitably produce their civil death. But the efiects of the revulsion are now slowly but surely passing away. ‘The energy and enterprise of our citizens, with our unbounded resources, will, within the period of another year, restore a state of wholesome in- | dustry and trade. Capital has again accumulated in our large cities. ‘The rato of interest is there very low. Con- fidence is gradually reviving, and so soon as it is discov- cred that this capital can be profitably employed in com- | made this government upon that of | mercial and manufacturing enterprises, and in the con- aouiex poor than hedoss Deke Gur solakter “was struction of railroads and other works of public and pri- instructed, therefore, to lose no time in expressing to | vate improvement, prosperity will again smile throughout those governments the deep regret with which the Presi- | the land. It is vain, however, to disguise the fact from | dent had witnessed this inattention to the just claims of | ourselves, that a speculative inilation of our curreucy, | the United States, and in demanding their prompt and without a corresponding inflation in other countries satisfactory adjustment. Unless this demand shall be | whose manufactures come into competition with our own, complied with at an early day, it will only remain for | must ever produce disastrous results to our domestic man- this government to adopt such other measures as may be | ufactures. No tariti, short of wbsolute prohibition, can necessary, in order toobtain for itwif that justive which | prevent these evil consequences. ; | it has in vain attempted to secure by peaceful means, | In connexion with this subject, it is proper to refer to | from the governments of Nicaragua and Costa Rica. our financial condition. The sume causes wiich have While ithas shown, and will continue to shew, the most | produced pecuniary distress throughout the country, have sincere regard for the rights and honor of those republics, | so reduced the amount of imports from foreign countries, it capnot permit this regard to be met by an utter neg- lect, ou their part, of what is due to the government and citizens of the United States. Against New Granada we have long-standing causes of complaint, arising out of the uusatisfied claims of our cit- igzens upon that republic; and to these have been more recently added the outrazes conunitted upon our citizens at Panama in April, 1356. A treaty for the adjustment of these difficulties, was concluded by the Secretary of State and the minister of New Granada, in Septembe 1857, which contained just and acceptable provisions for that purpose. ‘Ihis treaty was transmitted to Bogota, and was ratitied by the government of New Granada, but with certain amendments. 1t was not, however, re- turned to this city until after the close of the last session of the Senate. It will be immediately transmitted to that body tor their advice and consent ; and should this be obtatued, it will remove all our existing Large of com- int agalast New Granada on the subject of clai apne ‘ave arisen between the two governments, as to the right of New Granada to le duty upon the vessels of the United States in its ports of the Isth mus, and to levy a passenger tax upon our citizens ar riving im that couatry, whether with a design to re1 i there or to pass from ocean to ocean by the transit route ; and also a tax upon the mail of the United States transported over the Pauama railroad. ‘The government of New Granada bas been informed, that the United States would consider the collection of either of these of equal or of nearly cqual value. Such, for example, ar | taxes, as an act in violation of the treaty between the two | the articles of iron of diferent clauses,’ raw sugar, amd countries, and as such would be resisted by the United States. At the same time, we are prepared to discus. these questions in a spirit of amity and justice, and with a mxicere desire to adjust them in a satisfactory manner. A négotistioa for that purpose has already been com menced. No effort has recently been made to collect these taxes, nor is any anticipated under present circum- stances. | With the empire ot Brazil our relations are of the most friendly character. Thé productions of the two countries, wad especially those of an agricultural nature, are such: as to invite extensive mutual exchanges. A large quan- tity of American flour is consumed in Brazil ; whilst more than treble the amount in value of Brazilian coflee is sumed in the United States. Whilst this is the case, heavy duty hax heen levied, until very recently, upon the importation of American flour into Bragil. I am «ratified, however, to be able to inform you that in Sep- tember last this has been reduced from $1 32 to about forty-nine cents per barrel, and the duties on other arti- cles of our production have Leen diminished in nearly the same proportion = L regret to state that the government of Bragil still continues to levy an export duty of about 11 per cent. on cotfee, xotwithstanding this article is adinitted free from duty in the United States. This isa heavy charge ws the consumers of cotiee in our country, as we purchiye half of the entive surplus crop of that article raised in Brazil, Our minister, under instructions, will reiterate his efforts to Lave this export duty removed; and it is hoped that the enlightened government of the Emperor will adopt this wise, just, and equal policy. In that event, there is good reason to believe that the commerce «won the two countries will greatly increase, much to the wivantage of both ‘The claims of our citizens agalast the government of Meazil are not, in the aggregate, of very large amount ; | of June 1th, 1853, a loan of that the revenue has proved inadequate to meet the neces- sary expenses of the government. ‘To supply the deficien- vey, Congress, by the act of the 23d of December, 1857 uthorized the issue of $20,000,000 of treasury notes aud, this proving inadequate, they authorized, by the act 1,000,000, “to be applied | to the payment of appropriations wade by law.”” No statesinan would udvise, that we should go on in creasing the uational debt to mncet the ordinary expenses of the government. ‘This would be « most ruinous poli- Tn case of war, our credit must be our chief resource, at least for the first year, and this would be greatly im. | paired by having contracted a large debt in time of peace. It is our true policy, to increase our revenue so as | ty equal our expenditures. [t would be ruinous to con- tinue to borrow. Besides, it’ may be proper to observe, that the incidental protection, thus atfurded by a revenne tariff, would at the present moment, to some extent, in- erease the confidence of the manufacturing interests, and | sive afresh impulse to our reviving business. ‘Tu this, | surely, no person will object. In regard to the mode of assessing and collecting du- ties under a strictly revenue taritl, | have long enter- » tained and often expressed the opinion, that sound pol- | icy requires this slgould be done by specitic duties, in eases to which these can be properly applied. ‘They are well adapted to commodities which are usually sold by weight or by measure, and which, from their nature, are foreign wines and spirits. In my deliberate judgment, specific duties are the best, if not the only means of securing the revenue against false aud fraudulent invoices, and suck bas been the practice adopted for this purpose by other commercial na- tions. Besides, specitie duties would atford to the Ameri- can manufacturer the incidental advantages to which he is fairly entitled under a revenue tariif. ‘The present sys- tem is « sliding scale to his disadvantage. Under it, when prices are high and business prosperous, the duties rise in amount when he least requires their aid. On the con- trary, when prices full, and he is struggling against adver- sity, the duties are diminished in the same proportion, greatly to his injury. Neither would there be danger that a higher rate of duty than that intended by Congress, could be levied in the form of specific duties. It would be easy to ascer- tain the average value of any imported article for a series of years; and, instead of subjecting it to an ad valo- rem duty at a certain rate per centum, to substitute in its place an equivalent specific duty. By such an arrangement the consumer would not be in- jured. It is true, he might have to pay a little more duty on a given article in one year ; but if so, he would pay a little less in another, and in a series of years these would counterbalance each other, and amount to the sune thing, so far as his interest is concerned. ‘This in- « convenience would be trifling, when contrasted with the edditional security thus afforded against frauds upon the rexenue, in which every consumer is directly interested. JT have thrown out these sugzestions as the fruit of my own “observation, to which Congress, in their better judgment, will give such weight as they may justly de- serve. The report of the Secretary of the Treasu in detail the operations of that department ment. The receipts into ry will explain of the govern- > the treasury from all sources | at some of these rest upon plain principles of justice, and during the fiscal year ending 30th June, 1858, includiug | dollars and forty-eight cents, (852,357,698 48,) making an aggregate of seventy-four million sixty-five thousand eight hundred and ninety-six dollars and ninety-nine cents, (374,065,896 99,) being an excess of expeniliture, beyond the estimated receipts into the treasury from or- dinary sources, during the fiscal year to the 30th June, 1359, of three million nino hundred and thirty-six thou- sand seven hundred and onedollars and forty-three cents, ($9,936,701 43.) Extraordinery means are placed by law within the command of the Secretary of the Treasu- ry, by the reissue of treasury notes redeemed, and by ne- ing the balance of the loan authorized by the act a June, 1858, to the extent of eleven millions of dollars, which, if realized during the present fiscal year, will leave a balance in the treasury, on the first day of July, 1359, of sevon million sixty-three thousand two hundred and ninety-cight dollars and fifty-seven cents, (37,063,298 57.) The estimated receipts during the next fiscal year end- ing 30th June, 1860, are sixty-two millions of dollars, (362,000,000,) which, with’ the above estimated balance of seven million sixty-three thousand two hundred und ninety-eight dollars and fiity-seven gents, ($7,063,298 57,) inake an aggregate for the service @& the next fiscal year, of sixty-nine million sixty-three Mjousand two hundred and y-eight dollars aud fifty-seven cents, ($69,063,- 298 57.) The estimated expenditures during the next fiscal year ending 30th June, 1860, are seventy-three million one hundred and thirty-nine thousand one hun- dred and forty-seven dollars aud forty-six conts, (373,- | 139,147 46,) which leave a deficit of estimated means, compared with the estimated expenditures for that year, commencing on the Ist of July, 1859, of four and seventy-tive thousand eight hundred and forty-eight | dollars and cighty-nine cents, ($4,075,848 89.) In widition to this sum, the Postmaster General will | require from the treasury, for the service of the Post Of- | fice Department, three million eight hundred and thirty. | eight thousand seven hundred and twenty-eight dollar: (33,853,728,) as explained in the report of the & etary | of the asury, which will increase the estiuated | deficit on the 30th June, 1860, to seven willion nine- | hundred and fourteen thousand five hundred and lars and eighty-nine cents, ($7,914,576-89.) ‘To | provide for the payment of this’ estimated deticioucy, | which will be increased by such appropriations as may | We made by Congress, not estimated for in the report of | the Treasury Department, as well as to provide for the | gradual redemption, from year to year, of the outstand. | ing treasury notes, the Secretary of the Treasury recom. mends such a revision of the present tariff as will raise the required amount. After what I have alrendy said, I need scarcely add that 1 concur in the © inion expressva in his report—that the publie debt should not be in- | ereased by an additional loan, and would therefore strong- ly urge upou Congress the duty of making, at their pres- ent session, the necessary provision for mecting these lia- bilities. The public debt on the Ist July, 1858, the commence- ment of the present fiscal year, was $25,155,977 66. During the first quarter of the present year, the sum of $10,000,000 has been negotiated of the loan authorized by the act of 14th June, 1858—imaking the present out- standing public debt, exclusive of treasury notes, $35,- 155,977 66. There was on the lst July, 1858, of treas- ury notes issued by authority of the act of December 23, 1857, unredeemed, the sum of $19,754,£00—making the amount of actual indebtedness, at that date, 354,910,- 777 66. To this will be added $10,000,000 during the present fiscal year—this being the remaining Lalf of the loan of $20,000,000 not yet negotiated. ‘The rapid increase of the public debt, and the necessity which exists for a modification of the tariff, to meet even the ordinary expenses of the government, ought to ad- monish us all, in our respective spheres of duty, to the practic» of rigid ecouomy. ‘The objects of expenditure should be limited in number, as far as this may be prac- icable, and the appropriations necessary to carry them into effect, ought to be disbursed under the strictest ac- countability. Enlightened economy does not consist in the refusal to appropriate money for coustit tional pur. | poses, essential to thedefence, progress, aud properity of the republic, but in takiag care that none of this money shall be wasted by mismanagement, in its application to the objects designated by law. Comparisons between the annmal expen liture at the present time, and what it was ten or twenty years ago, are altogether fallacious. ‘The rapid increase of our country in extent and population, renders a corresponding increase of expenditure, to some extent, unavoidfthle. ‘This is constantly creating new objects of expenditure, and aug- menting the amount required for the old.” The true questions then, are, have these objects been unnecessaril dred and eighty-three thousand nine hundred and eighty-_ t fiscal year they will amount to $6,290,- 000. ‘These sums are exclusive of the annual appropris- tion of $700,000 for ‘‘compensation for the mail service performed for the two houses of Congress and the other departments and officers of the government in the trans- | portation of free matter."’ | ‘The cause of these large deficits is mainly attributable | to the increased expense of transporting the mails. In 1852 the sum paid for this service was but a fraction | | it is estimated that it will amount to more than ten mil. | lions of dollars. ‘The receipts of the Post Office De} to approach or to equal its expendi the legislation of Congress. In applying any remedy, | care should be taken that the people shall not be de. | prived of the advantages, which they are fairly entitled to | enjoy from the Post Office Department. ‘The principal | remedies recommended to the consideration of Congress by the Postmaster General, are to restore the former rate of postage upon single letters to five cents ; to substitute for the franking privilege the delivery to those now enti- tled to enjoy it, of post office stamps for their corres pondenee, and to direct the department, in making c: tracts for the transportation of the mail, to to the payment of the sum necessary for th pose, without requiring it to be transpo: coaches or carriages of any particular description. the present system, the expense to the government is | greatly increased, by requiring that the mail shall be car- ried in such vehicles as will accommodate passengers. | ‘This will be done without pay from the department, over all roads where the travel will remuneraty the contract- ors. These recommendations deserve the tion of Ce T would again call your attention to the construction of a Pacific railroad. ‘Time and reflection have but served to confirm me in the trath and justice of the ob- servations which I made, on this subject, in my last an- nual mesge, to which I beg leave respectfully to re- fer. It is freely admitt this government to exercise the the Pacific railroad by its own immediate agents. a policy would increase the patronage of the executi dangerous extent, and introduce a system of jobbing and corruption, which no vigilance on the part of federal officials, could either prevent or detect. This can only be done by the keen eye, and active and careful supervision, of individual and private interest. ‘The onstruction of this | road ought, therefore, to be cominitted to companies incor- | porated by the States, or other agencies whose pecuniary | interests would Le directly involved. Congress mi then assist them in the work by grants of land or of money, or both, under such conditions and restrictions ax wouid secure the transportation of troops and munitions ; of war free from any charge, and that of the United States ; Maail at a fair and reasonable price. ‘The progress of events since the commencement of your last session, has shown how soon difficultics disappear | before a firm and determined resolution. At that time, such a road was deemed by wise and patriotic men, {te be a visionary project. The great distance to be | overcome, and the intervening mountains and deserts in in the opinion of many, | could not be surmounted. Now, after the lapse of but a | Single year, these obstacles, it has been discovered, are | far less formidable than they were supposed to be; and | mail stages, with passengers, now pass and repass regular- | » twice in each week, by a common wagon-road between | aa Francisco and St. Louis and Memphis, in less than | twenty-fivedays. ‘The service has been as regularly per- | formed, as it was, in former years, between New York aud this city. Whilst disclaiuing all authority to. appropriate money for the constructiun of this road, except that derived from. the war-making power of the constitution, there are im- portant collateral considerations urging us to undertake the work as speedily ax possible. ‘The first and most momentous of these is, that such » road would be a powerful bond of union between the States cast and west of the Rocky mouutaius. ‘This is so self-evident us to require no illustration. But again, in a commercial point of viow, I consider this the great question of the day. With the eastern front of our republic stretching along the Atlantic, and its | Merce oy mas ag ee tl eats ea he must necessarily command a very large proportion of the trade both of Europe and Asia. “Our recent treaties with China and Japan will open these rich and populous em- pires to our commerce ; and the history of the world proves, that the nation which has gained possession of the trade with Eastern Asia, has always become wealthy i powerfal. The peculiar geographical position of Cal uia and our Pacific possessions, invites American capital and enterprise into this fruitful field. ‘To reup the rich | harvest, however, it isan indispensible prerequisite, that : shall first have a railroad, to convey and circulate it products throughout every portion of the Union. Bo- sides, such @ railroad through our temperate latitude, | which would not be impeded by the frosts and snows of | winter, nor by the tropical heats of summer, would at- | tract to itself much of the and the trade of all na- tions passing between Europe and Asia. | On the 2Ist of Anguat last, Lieut. J. N. Mafiit, of the United States brig Dolphin, captured the slaver “Echo,” | (formerly the Patnam of New Orleans,) ner Kay Vee, on the coast of Cuba, with more than three hundred Afri- can negroes on board. ‘The prize, under, the command of | Lieut. Bradford of the United States navy, atrived at | Charlestou on the 27th Au; egroes, | three hundred and six in number, were delivered the custody of the United States trie ina. ‘They were first placed in Casti ‘y, aul afterwards in Fort Sumter, for safe- and were detained there uutil the 19th Septem when the survivors, two handred and seventy-cne namber, were delivered on board the United States steau jagara, to be transported to the coast uf Africa, uuder the charge of the agent of the United States, pursuant to the provisions of the act of the Sd March, IS19, “in ad- | n to the acts prohibiting the slave trade.’” Under | 2d section of this act, the I'resideut is ‘‘authorized to | ¢ such regulations and arrangements as he may deem expedient, for the safe-keeping, support, and removal Le- | yond the limits of the United States, of all such negroes, | | inulattves, or persons of color’ captured by vessels of t ‘partment can be made | ture, only by means of | confine itself | is single pur- nied in post | Under grave considera ied, that it would be inexpedient for power of constructing Such | | the way, were obstacles w i} | multiplied ¢ or, has the amount expended upon any or a of them, been larger than comports with due economy / In accordance with these principles, the heads of the dif ferent executive departments of the government, h been instructed to reduce their estimates for the next tis- cal year, to the lowest standard consistent with the efti- ciency of the service, and this duty they have performed ina spirit of justeconomy. ‘The estimates of the ‘Treas- ury, War, Navy, and Interior Departments, have each been in some degree reduced ; and unless a sudden and unforeseen emergency should arise, it is not anticipated that a deficiency will exist in either within the present or the next fiscal year. The Post Ofice Department is placed in a peculiar position, different trom the other depart- meuts, aud to this I shall hereafter refer. J invite Congress to institute a rigid scrutiny to ascer- tain whether the expenses in all the departments cannot be still further reduced ; and 1 promise them all the aid in my power in pursuing the investigation. 1 transmit herewith the re Secretaries of War, of the Navy, of the Interior, and of the Pos! formation and important recommendations, to which I invite the attention of Congress, In my last annual message, I took occasion to recem- inend the immediate construction of ten small steamers, of light draught, for the purpose of increasing the efli- ciency of the navy. Congress responded to the recom- mendation, by authorizing the construction of eight of them. he progress which has been made in executing this authority, is stated in the report of the Secretary of the Navy. I concur with him in the opinion, that a greater number of this class of vessels is necessary, for the purpose | of protecting in a more efficient manner the persons and | property of American citizens on the high seas, and in | foreign countries, as well as in guarding more effectually | our own coasts. I accordingly recommend the passage. | of an act for this purpose. | The suggestions contained in the report of the Secre- tary of the Interior, especially those in regard to the dis- | position of the public domain, the pension and bounty- | land system, the policy towards the Indians, and the amendment of our patent laws, are worthy of the serions consideration of Cougress. | _ The Post Office Department occupies a Position very | difierent from that of the other departments. For many years it was the policy of the government to render this « self-sustaining departiment ; and ff this cannot now be accomplished, in the present condition ef the country, we i | | ports made to me by the | tmaster General. They each contain valuable in- | United States, as may be delivered to the marshal of U | district into which they are brought ; ‘and to appoint | 4 proper person or persons residing upon the coast of | Africa, as agent or agents for receiving the negroes, mu | lattoes, or persons of color, delivered from on board ves- sels seized in the prosecution of the slave trade Ly com- | | manders of the United States armed vessels."’ | Adoubt immediately arose as to the true construction of this act. It is quite clear from its terms that the President was authorized to provide “for tie safe-keep- ing, support, and removal’ of these negroes up till the time of their delivery to the agent on the coast of Afri- | ca; but no express provision was made for their protec- | tion and support ufter they had reached the place of | their destination. Still, an agent was to be appointed to | receive them in A: ; and it could not have been sup- posed that Congress intended he should desert them at | | the moment they were received, and turn them loose on | | that inhospitable coast to perish for want of food, or to | become again the victims of the slave tre. Had this Leen the intention of Congress, the employment of an | agent to receive them, who is required to reside on the coust, was unnecessary, and they migiit have been landed by our vessels anywhere in Africa, and left exposed to the suiferings and the fate which would certainly await them. Mr. Monroe, in his special message of 17th December, | 1819, at the first session after the act was passed, an- nounced to Congress what, in his opinion, was its’ true construction. He believed it to be his duty under it, to | follow hese unfortunates into Africa, and make provision | for them there, until they should be able to provide for themselves. In communicating this interpretation of | the act to Congress, he stated that some doubt had been | entertained as to its true intent and meaning, and he submitted the question to them, so that they might, ‘should it be deemed advisable, amend the same before further proceedings are had under it.'’ Nothing was | . done by Congress to explain the act, and Mr. Monroe proceeded to carry it into execution according to his own interpretation. This, then, became the practical con- struction. When the Africans from on board the Echo | were delivered to the marshal at Charleston, it became my! duty to consider what disposition ought to be made of them under the law. For many reasons, it was ex- ithor- | ; in giving counte- | , Was just what might | high nance to the execution of the law, their yet have been expected from | try and our people. r ceive these Africans in Liberia from the agent of the United States, and furnish them during the period of one year thereafter, with comfortable shelter, clothing, pro- | visions, and medical attendance, cansi receive schooling ; and all, whether chi be instructed in the arts of civilized life, suitable to their, condition. This aggregate of forty-five thousand dollars | was based upon an allowance of one hundred and fifty dollars for each individual and as there has been con- ing the children to as under the circumstances may appear just and reasona- ble. This cannot be fixed until we shall ascertain the | actual number which may become a charge to the so- | ciety. | It was also distinctly agreed, that, under no cireum- stances, shall this goverpment be walled upon for any ad ditional expenses. The agents of the society manifested a laudable desire | to conform to the wishes of the government, throughout the transaction. They assured me that, after a careful | calculation, they would be required to expend the sum of | one hundred and fifty dollars on each individual in com- | plying with the agreement, and they would have nothing | left to remunerate them tor their care, trouble, and re- sponsibility. Atall events, I could make no better arrange- ment, and there was no other alternative. During the Period when the government itself, through its own agents, undertook the task of providing for captured ne- gtocs in Africa, the cost per head was very much greater. ‘There having bees uo outstanding appropriation appli- cable to this purpose, I could not advance any money on the agreement. I therefore recommend that au appro- priation may be made, of the amount necessary to carry it into effect, Other captures of a similar character may, aud prola- bly will, be made by our naval forces; and 1 earnestly recominend, that Conzress may amend the second section of the act of March 3, 1819, so as to free its constrnction from the ambiguity which has so long existed, and ren der the duty of the President plain in executing its pro- visions. 1 recommend to your favorable regard, the local inter- ests of the District of Columbia. As the residence of Congress and the executive departments of the govern- inent, we cannot fail to feel a deep concern in its welfare. ‘This is heightened by the high character and the peaceful and orderly conduct of its vesident inhabitants. I cannot conclude without performing the acteeable duty of expressing my gratification, that Congress so | kindly responded to the recommendation of my last an- | nual messaze, by affording me sullicient time before the | close of their late session, for the examination of all the Villa presented to me for approval. ‘This change in the | practice of Congress, has proved to be a wholesome re- | form. Lt exerted a beneficial influence on the transaction | of legislative business, and elicited the gencral approba- | tion of the count Tteuabled Congress to adjonm with that dignity and deliberation so becoming to the repre- | sentatives of this great republic, without having crowded | into general appropriation bills provisions foreign to th nature, and of doubtful constitutionality and expediency Let me warmiy aud strongly commend this precedent, | established by themselves, as a guide to their proceed during the present session. | | | JAMES BUCHANAN. Wasnixaros Crrv, December 6, 1853. THE WABASH AT CONSTANTINOPLE. THE | VISIT OF THE SULTAN. | (From « Special Correspoudeut of the Untow } | Coxstaxrisorie, Oct 1558. The American population here have been rejoicing fur some ten days past in the presence of the United States | Steam frigate Wabash. So far removed as we are from our government, anything that reminds us that we are not forgotten by our appointed guardians, that our inter- | ests, Our welfare, and our personal security are objects of | solicitule with the powers that be, is a source of gratifi cation which no one can fully appreciate who has not resi- ded for a time in these or other far distant Lands. You may i . then, how proud we feel in being y uagnificent a vessel as the Wabash, undoubted!y the finest and most beautiful specimen of na- val architectare that ever cast anchor ia the Bosphoras. ‘To say that she has been the admiration of all that have visited her would be a compliment to their judgment and | Ritdne Masse tas tase seomond Staak nmtetke oe nae} Bat there is still another point of view in which we have been gratified by her visit. ‘The ‘Turkish admiral, who Visited the United States a short time since, return: ed home with most favorable impressions of our coun- I have not time to tell you of all that he bas said of us, nor of the many manifestations ildren or adults, to | | beautiful, tiny china cnps, about the size and | ceeding directly to bis caique, as all, tendants, supposed was his intention, | where the American minister stood, sented to his Majesty Flag Officer Lavalette terview, so entirely spontancous and informal, as it must havedone, solely from the suggestions of ship and good feeling for the American accompanied by the stately ceremonies and altogether unprecedented. The interview lasted some ten minutes. The Sultan expressed his friendship for the American government, his grateful remembrance of the reception late. ly accorded to his adwiral, who had visited the United Mates, bade the flag-officer command the services of his officers during his stay at Constantinople, which be hoped would be prolonged as long as he might find it agreeable fo remain. The flag-otficer during the ingerview deport od himself with the grace and diguity eminently befitting the occasion and the high station te which he has been so deservedly clevated ; expressed on bebalf of the Amer- ican govermuent his regard for his Majesty's welfare, an nounced the presence of oar nacional veae!, and invited his Majesty, cither personally or thromgh his officer, to pay ber a visit. In response to this invitation, the Sul tan intimated that he would visit the vessel in person ‘The interview thus happily concluded, the Saltan pro eveded to his caique, and the flag-olticer and attendants to the boats in which they had come. Subsequently a more formal interview was accorded to the dag officer at the imperial palace of Dolma Bateb<, upon the Bosphorus. At the bour appointed forthe audi enee the dag utticer, attended by the American minister, the consul general, and dragoman, and some twenty-five or thirty of the frigate’s officers, proceeded in the ship's bouts to the palace. They were ushered first into «large saloon, where, after being seated a short time around the room, the flag offi the American minister, and the consul general aud dragoman occupying the side which fronted on the Bosphorus, pipes were brouwzht. The stems of those handed the flag oftioer and amiuister were of jasmine, the wouth-piece of amber, richly adorned with rings of diamonds. The others were of cherry, month-pieces of amber, aud likewise adorned with asingle circle of diamonds. After en << our tcharbouques « little while Mahmoud Pasha, Minister of Foreign Affairs, entered, and, after presentation, seated bimeelf on the divan, between the flag officer, Lavalette, and the Ameri cau minister, with whom he entered into a free and easy social conversation. His manner was especially easy calm, and align agente, kindly smile lighting up his tine fea- tures. There was the most eutire abscnce of mannerism and all attectation of delight, less mock dignity, less eta- phatic gesticulation, less straining after efiect. than I ever before witnessed on any si i ' of whatever grade. Hix whole manner was just’ what you would have looked for had he been seated among so ue familiar friends smoking at caw in their own apartment After pipes, coffee, of course. It was handed us in ot an egg cup, and sct ina filigree case of gold. As with the pipes, so with the coflce, there wax a servant for cach cup. Having finished coffee, after a few moments we passed thence through the lovely vene towards the reception roum of As my ol ject is not now to descr must pass without notice the almost bewildering effeat of the delicate, rose-colored light reflected from the stained glass of the vaulted roof upon the crystel stair-unse, and the elaburately-carved pannels of this gorgeous saloon. Having been formally presented to hix Imperial Majes by the Awerican iminister, the thy officer announced in a more fall and formal manner the object of his visit. His Majesty renewed the expression of his thanks to the United States government tor its kind reception of his admiral, and the assurances of his kind regard and good- After these and other like interchanges of friendly feeling, with a respectful bow we teak leave of his Majes- ty, and were then ushered into apother saloon, where. soon after being seated, a how! of delizhtfal beverage was Presented to each. A tew words between the tlag officer, our own minister, and the Minister of Foreign Affairs closed this most agreeable interview, and we were once mnore on our way to the magniticent ship. Oe Hag Miche To Care oT tne wr amate was visited by hie finpetial Majesty the Sultan’ himeelf, “en propria persona,”” preceded by many of his high State dignitaries. He was received with a salute of nty-one guns, and such other h. As a ship's crew of abont seven hundred fine-lookiag sailors and marines, with » full complement of most gallaut-lovking officers, headed for thee kent = | by the accomplished flag officer, migut well bestow. His | crossed over te the Asiatic shore, a day or two after the which we have had that not only he, but his government, have highly appreciated the generous hospitality with which he was everywhere received by oar people as well ux | our government, and that it had greatly strengthened the | friendly feeling which was alre: entertained for us. | But to return tothe Wabash. Such honors as have been shown us spring from the impulses of the heart and not from any calculation of |p y, or the sugzestions oft diplomatic art. 1 mi; firmation of this belief, if it were proper | should do so, much more than I shall attempt in the description of what met the pub- lic eye. | On the first day of her arrival she was visited by Me- hemed Pasha, the admiral who recently visited the Uui- ted States, and who, as I have before said, brou; the distinzttished recep- m during ‘Tune fticer on board the Wabash letween them seemed the , tather than newly. was likewise visited by wsha, Grand Admiral of his lmperial Ottoman Majesty, M ter of the Marive, as well as by all the other high ofticers connected with the Admiralty, high dignitaries, machinists, naval architects, x A more distinzuished mark of respect, how that shown by the dinner given to Flag Officer L and his officers, and to rican winister, Mr. liams, and the Mr. Brown, by Grand Admi summer resi Waters of Asia, he visited the flag the relat er, A jean corfpul-gencral and de chemed Pasha, Minister of Mar Lot his Imperial Ottoman Majest M ine and at his uce on the Bosphorus, near the Cele by the special command of bis Mw tere were present at the dinner, s wamed, all the high officers connected with the Admiralty. l cer Lavalette and other officers of the Wabash, the American minister and the American consul-gencral and «ragoman, went in @ steamer expressly provided by his Majesty the Sultan. On arriv the comed by a magnificent hand of musk bia’” vibrated not only from the band, but from every hord of every American heart present. ‘Then came the * Sultan's March,” then ‘+ Yankee Doodle,’ and alter- nately, throughout the evening's entertainment, national airs of the two covutries made still more Jo the en-/ chanting scene which, on all sides, surrounded them The gorgeous saloons—the beautiful garden, with its brilliantly-itluminated shrubbery the Bosphorus, uuri- valled in loveliness—but, above all, the cordial yreeting of two great nations, through their representatives at tie festive bourd—constituted a scene which it ix the good fur- tune of few to witness. At diuuer the Capudan Pasha proposed a toast to President of the United States, which was responded te Ly the Auerican minister, who offered, in return, one to his Majesty the Sultan, and expressed the hope that, as the two national flags which in miniature sermounted so gracefully one of the table ornaments had never yet floated over opposing armies, so, he hoped, the never be displayed, except, as on the present occasion, as emblems of mutual regard and fraternal feeling. Ata late hour our friends, having done ample honor to the American character by the cordial, hearty good feeling which they had displayed for the profuse table comtorts provided for the oc , took leave of their generous host. As the steamer lett the shore the band once more played our favorite air, ‘* Hail Columbia.” ‘The Asiatic hills echoed Lack the strains till Europe and Asia, Asia and Europe, shouted together for joy, across the placid waters of the Bosplorus, the patriotic, soul-stirring ua. tional strain, ‘+ Hail Columbia."” | T have yet to speak of the more distinguished honors, ‘as well as the more interesting incidents of this memor- able visit. Flag Officer Lavalette, accompanied by the American minister and family and the consul general, had arrival of the Wabash, to witness some cere- mony, at which the Sultan was expected to be present. Ou one side of the street which led to the room in which | | ed by an English brig, wi Majesty remained on board about an hour and a half, ex- amining everything, and waking the most ute inqui- ry about everything novel in this mest beautiful ship. ‘The engraved likenesses of Washingtom and President Bachiwan, which hang in the ship s upper saloon, at tracted his special attention, and diew from him several complimentary remarks upon our conutey. He exhib ited likewise no little curiosity as to the nativity of « very genteel and dignitied-lwking old darkey, beiy ser- vant of Flag Officer Lavaletie The salute given to his Majosty was provokiugly 4 a h by some mishap bad detailed te ited at fine His Majesty ex had been hy we ShAiety lest some one ined that a little delay in wf a& salute was the only watching with mach apparent interest twenty-one cus lated that his Majesty lind apparently de fiom his visit, Indeed, I am not distinguished mark of respect had pcoded to any mation or vemel under like circamatanons Timust not forget to mention that all the Ametican ssionaries, with thelr tauilies, in and abvut Constantino v a body, as well to gratity « laudable all, as to pay their respects to the can 1 consent to close this letter —al theugh « zx but the brictest: ice of a few leading inc’ 4 Walrsh —withon little it may be worth, as te cer like, ar Flay Oni and the extraordinary discipline whole They utheers, silom, aud 4, 90 tar as L could all that tie proudest of 1 It is enough, perhaps, to say of wen that they were worthy of post to which e been arsigned—worthy to serve under such a and he net ouly worthy of such a vewsel, but agvished station asigued bh the oat office known ia naval service, and rauking with the bigh ent kuown to any in the world But all things mast have au end, and so the visit of the Wabash. ¢ th, after a stay of ten days in the Bosy Th 0 aboard during the day, ci Pesikdenee on the beautital the sea of Marmora, seme @ftecn ‘ame the most painful were shaking of bands al of the ine us could have wist crew. there were eyes that ed and spoke not, yet ast stop, orl slall be looked avist, and Tips that qu wore eloquent with grief Mr. Robert Sunday last. reduced him to a state of poverty, almost destitution. lie won the Derby in 1432 with St. Giles, when he received on the day of settling no less a sum than $230,000. He had also a share in Bloomsbury, the winner of the Derby i ; but his means at that time —— to enable him to win a large swan. He at one time {about twenty-five years ago) nearly 200 homes esting hay and corn on his estate, Murton, near York. Now, alas ! he was buried by subscription. Major Stein, (says the Santa Fe Gazett»,) lately frow Sonora, expresses the opinion that Sonora is more prolific of gold and silver than California ; and, if » Territory of the United States, would tep millio, dolla:s annu-