The New York Herald Newspaper, December 9, 1857, Page 1

WHOLE NO. 1769. NATIONAL AFFAIRS. THE PRESIDENTS MESSAGE. Report of the Secretary of the Treasury. ABSTRACTS oF THE ANNUAL REPORTS . OF THE fleeretaries eof the Navy and War Depart- ments, Postmaster General, and the General Land Office. OUR FOREIGN RELATIONS. The Recent Revulsion and the National Finances. THE KANSAS QUESTION. THE MORMON WAR. THE PACIFIC RAILROAD, Abrogation of the Clayton-Bulwer Treaty, and More Decisive Measures against Spain Recommended, de. &o., &., THE PRESIDENT'S MESSAGE. Fus.ow Crrmxes OF THE SERATR asp Hovss ov REPREAENTATIVES— Im obedience to the command of the constitution, it has mow become my duty ‘to give te Congress information of the state of tho Union, and recommend to their considera tion such measures” as judge to be ‘necessary and ex- » But first, and above all, our thanks are due to Almighty Ged for the numerous benefits which he has bestowed ‘wpon this people; and our united prayers ought to ascend to Him that He would continue to bless our great republic im time tocome as He has blessed it in time past. Since the adjournment of the last Congress our constituents have enjoyed an unusual degreo of health. The earth has yielded her fruits abundantly, and has bountifully ro- warded the wil of the husbandman. Our great staples have commanded high prices, and, up till within a brief period, our manufacturing, mineral and mechanical oscu- pations have largely partaken of the general prosperity. We bave possessed all the elements of material wealth in rich abundance, and yet, notwithstanding all these advan tages, our country, in its monetary interests, is at the present moment in a deplorable condition. In tho midst @f unsurpassed plenty in all the productions of agricul- fure and in all the elements of national wealth, we find or manufactures suspended, our public works retarded, ‘eur private enterprises of different kinds abandoned, and thousands of useful loborers thrown out of employment ‘and reduced to want. The revenue of the government, which is chiefly derived from duties on imports from abroad, bas been greatly reduced, whilst the appropria- tiens made by Congress at its last session for the current fiecal year are very large in amount. Under these circumstances a loan may be required be- fore the close of your present session; but this, although deeply to be regretted, would prove to be only aslight 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 with- ut the power to extend relief. THM FINANCIAL REVULSION, tis onr duty to inquire what has produced such unfor- funate results, and whether their recurrence can be pro- vented. In all formor revulsions the blame might havo Deen fairly attributed to a variety of co-operating causes; Dut not so upon the present occasion. It is apparent that eur existing misfortunes have proceeded solely from our extravagant and vicious system of paper currency and bank credits, exciting the people to wild speculations and gambling in stocks. These revulsions must continue to recur at successive intervals so long as the amount of the paper currency and bank loans and discounts of the eountry shal! be left to the discretion of fourteen hundred feresponsible banking institotions, which from the very Jaw of their nature wig consult the interest of their mock- Dolders rather than the public weltare, ‘The framers of the constitution, when they gave to Con gress the power “to coin money and to regulate the value thereof,’ and prohibited the States from eoining money, ‘emitting bills of credit, or making anything but gold and silver coin a tender in payment of debts, supposed they had protected the people against the evils of an excessive ‘and irredeemable paper currency. They are not respon gible for the existing anomaly that a government endowed with the sovereign attribute of coining money and regu- Iating the value thereof should have no power to prevent ethers from driving this coin out of the country and filling ‘up the channels of circulation with paper which does not represent gold and silver. It is one of the highest and most responsible duties of government to insure to the people & sound circulating medium, the amount of which ought to be adapted with the utmost possible wisdom and skill to the wants of in- Unfortunately, under the construction of the foderal SEanged, tla important and’ oticate duty has Ueew dia. ‘this im uty ie severed from the coining power and virtually transferred to more than fourteen hundred State banks, acting inde- pendently of each other, and regylating their paper is- gues almost exclusively by © regard to the present inte reat of their stock holders. Exercising the sovereign power of providing a r ct , instead of coin, for the country, the first duty which these banks owe to the pub- keep in their vault a sufficient amount of gold jer to insure the convertibility of their notes into ‘at all times and under all circumstances. No bank to be chartered without such reatrictions on fas to secure this result. All other restric: tions are ively vain. This is the only true touch. stone, the only efficient regulator of a paper currency— the only one which can guard the public against over is. ‘ues and bank euspensious. As acollateral and eventual security it is doubtless wise, and in all cases ought to be aired that banks shall bold an amount of United States securities equal to their notes in circulation, and pledged for their redemption. This, however, fur fishes no adequate security against over issues. Ou the contrary, it may be perverted to Inflate the currency. faded, i is possible by this means to convert all the debts ‘of the’ United States and State governments into bank notes, without reference to the specie required to redeom them. However valuable these securities may be in Ives, 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 depre Ciation of bank notes. In England, which is toa consider able oxtont a paper money country, though vastly behind oar own in this respect, it was deemed advisable, anterior the act of Parliament of 1844, whicn wisely As 4 aeue of from the banking department, for the of ‘rguand tokeep on hand gold and silver to one third of ite combined circulation and depowite this was no more than suilicient to secure the vertibility of ite notes, with the whole of Great Bri ‘and to come extent the continent of Rurope, as a fleld a circulation, rendering it aimost impossible that a ‘and immediate run to a dangerous amount should upon it, the same proportion would certainly be ‘under our,banking system. Each of our four. hundred banks Mas but a limited ciroamference for ulation, and in the course of avery few days the noteholiers might ‘demand from 4, even althoug! one-third of ite Immediate wobec, aware, with the exception banks any State bank throughout the Union requires ‘by Ite charter to keep this or any other and silver compared with the amount Fr ho combinch circulation thé deport.” What has been the conseqnence? In a recent report made by the Treasn ty Department on the condition of the banks through- out the different States, according to returns dated near. est to January, 1857, ‘the te amount of actual in their vaulte ‘ig $58,349,838, of their circulation 4 778,822, and of their deposites $290,351,362. Thas e Cs ogid that these banke in the aggregate have consid erably less than one dollar in seven of gold and silver @ompared with their circutation and depoeites. Tt wae Ipable, therefore, that the very first pressure must vo them to suepension, and deprive the people of & eonvertibie currency, with all ite disastrous cousequences . itt Hd Ai aT Hit Fis <5 i 3 MORNING EDITION—WEDNESDAY, DECEMBER 9, 1857. It is truty wonderful that they should have so long con- tinued to preserve their credit, when a demand for the payment of one-seventh of their immediate liabilities ‘would have driven them into insolvency. And this is of the banks, notwithst that four the condition hundred millions of gold from California have flowed in upon.us within -the eight years, and the tide still continues to flow. Indeed, such has been the extrava- Serably vant of ue oan in proportion etlom te tele rably less amount , either ¢ el on to their circulation er deposits combined, than they did before the discovery of gold in California. Whilst in the year 1848 their specie tn proportion to their capital was more than equal to one dollar for four and as half, in 1857 it does not amount to one dollar for every six’ dollars and thirty-three cents ef their capHtal. In the year 1848 the specio was equal within a very emall fraction to one dollar in five of their circulation and deposits; in 1867 it is notequal to one dollar in eeven and a half of their circulation and deposits. From this statement it is easy to account for our finan- cial history for the last forty years. It hae been a history of extravagant expansions in the business of the country, followed by ruinous contractions. At successive interval the best and most enterprising men have been tempted to their ruin by excessive bank loans of mere) or credit, ex- citing them to extravagant importations eign goods, wild speculations, and ruinous and demoralizing stock gam- bling. When the crisis arrives, as arrive it must, the banks can extend no relief to the people. Ina vainstruggle tore- deem their liabilities in specie they are compelled to con- tract their loans and their issues; and at last, in the hour of distress, when their assistance is most needed, they and heir debtors together sink into insolvency. tee ft is tI sper system of extravagant mn, Mlk! 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 evented us from com] in our own markets with | hee manufacturers, produced extravagant impor- tations, and has counteracted the effect of the large inci- dental protection afforded to our domestic manufactures by the present revenue tariff. Bbt for this the branches eur manufactures composed of raw materials, the pro- duction of our own country—such as cotton, iron, and woollen fabrice—would not only have acquired almost ex- clusive possession of the home market, but would have created for themselves a foreign market throughout the world. Deplorable, however, as may be our present financial condition, we may yet indulge in bright hopes for the fu- ture. No other nation has ever existed which could have endured such violent expansions and contractions of paper credite without lasting injury; yet the buoyancy of youth, the energies of our tion, and the sj which never juails before difficulties, will enable us soon to recover ben our present financial embarrassment, and may even occasion us speedily to forget the lesson which they have taught, A TEMPORARY NATIONAL LOAN. In the meantime it is the duty of the government, by all proper means within its power, to aid in alleviating tho sufferings of the people occasioned by the nsion of the banks, and to against the recurrence of the same calamity. Unfortunately, im either Mare of the case, it can do but little. 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 ite liabilities to the people in gold and silver. Its disbursements in coin will pass into circulation, and materially assist in restoring a sound cur- rency. From its high credit, should we be compelled to make a temporary loan, it can be effected on advantageous terms. This, however, shall, if | seormerys be avoided; but if not then the amount shail be limited to the lowest prac- sum. T have, therefore, determined that whilst no useful go- vernment works already in progress shall be suspended new works, not already commenced, will be postponed, it this can be done without injury to the country. Those necessary for its defence shall proceed as though there had been no crisis in our monetary affairs. But the federal government cannot do much to lo against a recurrence of existing evils. Even if insur- mountable constitutional objections did not exiet against the creation of a national bank this would furnish no adequate preventive security. The history of the last of the United States abundantly proves the truth of this assertion. Such a bank could not, if it would, regu- late the issues and credits of fourteen hundred State banks in such a manner as to prevent the ruinous expansions and contractions in our currency which afflicted the coun- try throughout the existence of the late bank, or secure us againet foture 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 exchangye, Tt accordingly commenced a sys- tem of curtailment of its loans and issues, in the vain hope that the joint stock and private banks ‘of the kingdom would be competled 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 cir- culation was effected by the Bank of England (in 1825) was more than made up by the issues of the country ‘THE POWER OF A NATIONAL RANK—SUGGESTIONS TO THE STATE BANKS. But a bank of the United States would not, if it could, restrain the isspes and loans of the State banks, because ite duty ae a regulator of the currency must often be in diredt conftict with the immediate interest of ite. stock- holders. If we expect one agent to restrain or control an- other their interests must, at least in some dogree, be antagonistic. But the directors of a Bank of the United States would fee] the samo interest and the same inclina- tion with the directors of the State banks to expand the currency, to accommo:late their favorites and friends with loans, and to declare largo 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 specie basis for our paper circulation by increasing the denomination of bank notes, firet to twenty, and afterwards to fifty dollars; {f they will require that the banks shall at all times keep on hand at least one dollar of gold and silver for every three dollars of their circulation and d j and if they will provide by a self-executing enactment, which nothing can arrest, that the moment they suspend they shall go into liquidation, T believe that such provisions, with a weekly publication by each bank of @ statement of {ta condition would go far to secure us against future suspensions of specie paymenta, BANKREPT LAW FOR THE RANKS, Congress, in my opinion, possess the power to pase a uniform bankrupt law applicable to all banking inetitu- tions throughout the United States, and I strongiy recom mend its exercise. This would make it the irreversible organic law of each bank's existence, that a suspension of specie payments shall produce ite civil death. The in- stinct of eelf-preservation would then compel it to per- form its duties in such @ manner as to escape the penalty and preserve its life. The existence of banks and the circulation of bank & per are so identified with the: habits of our peoplo, that they cannot at this day be suddenly abolished without mach immediate injury to the country. If we could confine them to their appropriate sphere, and prevent them from admin- istering to the spirit of wild and reckless spéculation by extravagant loans and issues, they might be continued with advantage to the public. But this Tsay, after long and much reflection: if expe- rience shall prove it to be impossible to et the facili ties which well regulated banks might afford, without at the same time suffering the calamities which the excesses: of the banks have hitherto inflicted upon the country, it would then be far the lesser evil to deprive them altogeth- er of the power to issue a f currency and confine them to the functions of banks of deporite and discount. Our relations with foreign governments are, upon the whole, in a satisfactory condition. The diplomatic difficulties which existed between the go: vernment of the United States and that of Great Britain at country, who has been cordially received. ‘Whilst it is y to the interest, aa am convinesd it is the sincere desire, of the governments and le 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, THE CLAYTON-HULWER TREATY. Bince the origin of the goverument we have heen employ ed in negetiating treaties with that Power, and afterwards in discussing their true intent and meaning. In this res pect the convention of April 19, 1850, commonly called the Clayton and Bulwer treaty, has been the most unfor- tunate of all, because the two governments place directly opposite and contradictory constructions upon its Orst and most imy article. " Whilst in the United States we beliewed that this treaty would place both Posvers upon an exact equality by the stipulation that neither will ever ‘oc. cupy, or fe , OF colonize, or assume or exercise any ‘dominion’ over, any part of Central America, it is contended by ¢ ‘itis the true construction them in the rightful cognition on the Great Britain, as owner or protector, to the whole extensive coast of Central America, bey my) round from the Rio Hondo to the = ys Vf. ag Ly ~4 agua, together with t jacent aude, exoe] ah 4 ween the Sarstoon and treaty dose no more tbaa simply prohibit thet from ex tending their possessions in Central America beyond the resent limits. It ie not too much to assert, that if in the Yon is in opposition both ed between the two governments for the ‘pose, if pow sible, of removing these difficulties; and @ treaty having this landible in view was signed at London on the 17th October, 1866, and was submitted by the of the Renate lowing 10th of this treaty, or would in its form, have accomplished the object intended without giving birth to new and embarrassing complications between the two governments, may perhaps be well questioned. Oer tain it ie, however, it was rendered much leas objactionable by the different amendments made to it by the Senate. The treaty, as amended, was ratified by me onthe lath March, 1857, and was transmitted to London for ratification by the Britieh government. That government expressed its willingness to concur in all the amendments made by tho Senate, with the single exception of the clause rel wo Ruatan and the other islands in the Bay of Honduras. article in the original treaty, as submitted to the Senate, after reciting + 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 Ter- ritory, under the sovereignty of the said republic of Hon- duras,” stipulated that ‘the two contractung partios do bereby mutually engage to recognise and respect in all future time the independence and rights of the said free Territory as a part of the republic of Ronduras.” Upon an examination of this convention between Great Britain and Honduras, of the 27th August, 1866, it was found that, whilst declaring the Bay Islands to be ‘‘a free territory under the sorereeeny of the republic of Hon- duras,”’ 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 Judleiat officers, elected by themselves. It deprived the government of Honduras of the taxing power in every form, and ex: empted the people of tho islands from the performance of military duty except for their own exclusive defence. Italso prohibited that republic from erecting fortifica- tions upon them for their protectiaa—thus icaving them open to invasion from any quarter; and, finally, it pro- vided “tbat slavery shall not at any time hereafter be permitted to exist therein.” Had Honduras ratitied this Convention, she would have ratified the establiximent of a State substantially inde- pendent within her own limits, and a State at all times subject to British influence and contrel. Moreover, had the United States ratified the tr with Great Britain in ita original form, we should have nm bound “ to recog- nise 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 wer 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 dohereby mutually engage to re- ¢ognise and respect the islands of Ruatan, Bonaco, Utila, Barbaretta, Helena ard Morat, situate in the Bay of Honduras, and off the caast of the republic of Honduras as under the sovereignty and as part of the said repnbiic of Honduras, Great Britain rejected this amendment, assigning as the po reason that the ratifications of the gonvention of the 27th August, 1856, between her and juras, had not been ‘ exchanged, owing to the hesitation of that govern- ment.’’ Had this been done, it is stated that “her Majesty's —, would have had little ee. in agreeing to e modification pri a by the Senate, wi ich then would have had in effect the same ification as the original wording.”? Whether this would have been the it, whether the mere circumstance of the exchange the ratifications of the British convention with ori ef aban in point of time to the ratification of our treaty with Great Beitain would, ‘‘in effect,” have had “the same significa- tion as the original wording,” and thus have nullified the amendment of the Senate, may well be 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 tho treaty which they had just refused te ratify, if the United States would consent to add to the Senate’s clear and unqualified recognition of the sovereignty of Honduras rode the Bay Islands the following conditional stipula- ion Whenever and as soon as the republic of Honduras shall have concluded and ratified a treaty with Great Britain, by whieh Great Britain shall have ceded, and the republic of Honduras shall have accepted, the said islands, subject to the prov ‘and conditions contained in such treaty. This proposition was, of course, rejected. After the Senate refused to recognise the British convention with Honduras of the 27th August, 1856, with full know- ledge of its contents, it was impossible for me, necessarily ignorant of “he provisions and conditions” which might be contained in a future convention between the same parties, to sanction them in advance. ABROGATION OF THE CLAYTON BULWER ENDED. The fact is that when two nations like Great Brita and the United States, mutually desirous, as they are, and I trust ever my be, of maintaining the most friendly rela- tions with each other, have unfortunately concluded a treaty which they understand in senses directly opposite, the wisest course is to abrogate such atreaty by mutual consent, and to commence anew. this been done promptly, all difficulties in Central America would most pana ere this have been adjusted to the satisfaction of h parties. The time spent in discussing the meaning of the Clayton and Bulwer treaty would have been devot- ed. to thie praiseworthy purpose, and the task would have been the more easily accomplished because the interest of the two countries in Central America is identical, being confined to securing safe transite over all the routes across the Isthmus. . TUR CENTRAL AMERICAN QUESTIONS. Whilst epterta ning these sentiments, I shall, neverthe- less, not refuse to contribute to any reasonable adjustment of the Central American questions which is not practically inconsistent with the American interpretation of the treaty. Overtures for this purpose have been recently made by the British government, ina friendly spirit, which I cor- dially reciprocate; but whether this renewed effort will resul. in success I am not yet prepared to express an opinion. A brief period will determine. OUR RELATIONS WITH RANCE—COMMERCIAL INSTRUCTIONS. With France our ancient relations of friendship atill con tinve to exist. The French government have in several recent instances, whieh not be enumerated, evinced aspirit of good will and kindness towards our countr: which I heartily reciprocate. It is, notwithstanding much to be regretted that two nations whose productions are of such a character as to invite the mostextensive exchanges and freest commercial intercourse, should continue to en force ancient and obsolete restrictions of trade against each other. Ovr commeroial treaty with France is in this respect an exception from our treaties with all otker com. mercial nations. It jealously levies discriminating duties both on tonnage and on articles, the growth, produce, or manufacture of the onc country, when arriving in vessels belonging to the other. More than forty years ago, onthe 34 of March, 1815, Congrees passed an act offering to all nations to admit their vessels Iden with their national productions into the ports of the United Stater upon the same terms with our own Vessels, provided they would reciprocate to us similar advantages, This act confined the reciprocity to the productions of the respective foreign nations whe might enter into the proposed arrangement with the Unit ed States. The act of May 24, 1828, removed this restric. tion, and offered a similar reciprocity to all such vessels witbout reference to the origin of their cargoes. Upon these principles our‘commercial treaties and arrange ments have been founded, except with France; and let us hope that this exception may not long exist. REwTA. Our relations with Russia remain, as they bave ever been, on the most friendly 3 Present Empe- ror, as well a ve never failed, when the occasion ¢ , to manifest their good will to our country ,and their femme ye peter ay ome fe ciated by the government and people of the Uni ‘States. ‘OUR DIFFICULTIES WITH SPAIN. With all other European governments, except that of ‘Spain, our relations are as peaceful as we could desire. 1 regret to say that no progress whatever has been made, since the adjournment of Congress, towards the settle” 1855, by firing into the American mail steamer Ei Dora- do, and detaining and searching her, remains unacknow- ledged and unredressed. wy tone and tem the Spanish government that of the United are much to be regretted. Our present Envoy Extraordi nary and Minister Plenipotentiary to Madrid has asked to be recalled ; and it is my to send out a new Min- ister to Spain, with special instructions on all questious pending between the two governments, and with a deter. mination to have them speedily and amicably adjusted, if this be possible. In the meantime, whenever our Min. ister urges the just claims of our citizens on the notice of mended by President Polk in his annual message of De cember, 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 hy my immediate predecessor in his message of December, 183; and entirely concurring with both in the opimion that this indemnity is justly due under the treaty with Spain of the 27th October, 1795, 1 earnestly recommend such an appropriation to the favorable consideration of Congress. TREATY WITH PRRATA, A treaty of friendship and commerce was concluded at Constantinople on the 13th December, 1866, 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 rust, 1857. This treaty, it is believed, will prove be neficial to American commerce. The Shah has manifest ed an earnest disposition to cultivate friendly relations with our country, and bas exprersed a strong wish that we should be represented at Teheran by a minister pleni- potentiary; and I recommend that an appropriation be made for this purpose. OUR RELATIONS WITTE CHINA. Recent occurrences 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 commerce. The twenty-fourth article of this — stipu lated for a revision of it, in case experience should prove this to be requisite, ‘ in which case the two governments Will, at the expiration of twelve years from the date of raid convention, treat amicably concerning the same, by meane of suitable persons appointed to conduct such nego- fo ‘These twelve years expired on the 3d of July, 1866, but long before that period it was ascertained that important changes in the treaty were necessary; and se- veral fruitless attempts were made by the Commissioner of the United States to effect these changes. Another of- fort was al to be made for the same e by our Com mise in junction with the inisters of Fngland ani , but this was « led by the oo- @rrence of hostilRies in the Canton river between Great Bri and the Chinese empire. These hostilities have ‘ily interrupted the trade of all nations with Can- h is now in a atate of blockade, and teeve occa- ‘a serious Ices of life and property. Meanwhile the nsurrection within the empire against the existing impe- risdynasty still continues, and it ig difficult to anticipate what will be the result. Under these circumstances, I have deemed # advisable to appoint a distinguished citizen of Pennsylvania envoy extraordinary and minister plenipotentiary to proceed to China, and to avail bimeelf of any opportunities which may offer to effect changes M the existing Choy a fatora. ble to American commerce, He left the United States for the piace of his destination in July Inat, in the war eteamer Minnesota. Special ministers to China have aleo heen ap pointed by the governments of (reat Britain and France Whilet our minister bas been instructed tw ocwupy » at neutral position in reference to the existing hostilities Canton, be British ant will cordially co-operate with the French ministers in all peaceful to secure by treaty stipulations those just con to commerce wi the nations of the world have aright to » and which China cannot long be permit to wil . From aswurauces received, I entertain no doubt that the three ministere will act ip ious concert to obtain similar commeicial treaties for each of the Powers they repreeent. WRAZIL AND NEW GRANADA. , We cannot fail to fee] a deep interest in all that con- cerns the welfare of the independent repubtics on our own continent, as well as of the empire of Brazil, Our difficulties with New Granada, which a short time since bore #0 threatening an aspect, are, it is to be hoped, in a fair train of settlement in a manner just and honora- ble to both parties. ‘THE ISTHMUS ROUTES. ‘The isthmus of Central America, including thatof Pana- ma, ie the great highway between the Atlanticand Pacific, | over which a large portion of the commerce of the world is destined to pass, The United Statoa are more dooply interested than any other nation in preserving the free- dom and security of all the communications across this isthmus. It is our duty, therefore, to take care that they shall not be interrupted either by invasions from our own Fanon, or by wars between the independent States of Central America. Under our treaty with New Granada of the 12th December, 1846, we are bound to guarant) the noutrality of the isthmus of Panama, through whicl the Panama railroad passes, “as well as the rights of sovereignty and oe which New Granada has and pouseaves over the territory.” This obligation is founded upon equivalents Capa by the treaty to the government and people of the United States, ‘Onder these circumstances I recommend to Congress the passage of an act authorizing the President, in case of necessity, toemploy the land and naval forces of the United States to gs | into effect this guarantec of neutra- lity and protection. Taiso recommend similar legislation for the security of any other routeacross the Isthmus in which we may acquire an interest by treaty. ‘With the independent republics on this continent it is both our duty and our interest to cultivate the most friendly relations. We can never feel indifferent to their fate, and must pay rejoice in their prosperity. Unfor- tunately, both for them and for us, our example and ad- vice bave lost much of their influence in consequence of the lawless expeditions which have been fitted out against some of them within the limits of our country. Nothing is better calculated to retard our steady material progress, or impair our character as a nation, than tho toleration of such enterprises in violation of the law of nations. ‘TRE FILIBUSTERING KXPRDITIONS. It is one of the first and highest duties of any independ. ent State, in its relations with tho mombers of the great family of nations, to restrain its people from acts of hos- tile aggression against their citizens or subjects. The most eminent writers on public law do not hesitate to de- nounce such hostile acts as robbery and murder, Weak and feeble States, like those of Central America, may not feel themselves abM to assort and vindicate their rights, The case would be far different if expeditions were set on foot within our own territories to make private ‘war against a powerful nation, If such expeditions were fitted eut from abroad against any of our own country, to burn down our cities, murder and plunder our oplé, and usurp our government, we should call any er on earth to the strictest account for not preventing such enormities. Ever since the administration of General 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 @ nation or State with whom we are at peace. The pre- sent neutrality act of April 20, 1818, is but little more than a collection of pre-existing laws. Under this act the Pre- sident is empowered to employ the land and naval forces and the militia “for the purpose of prevonting the carry- ing on of any such expedition or enterprise from the ter- ritories aud jurisdiction of the United States,”’ and the col- lectors of customs are authorized and required to detain any vessel in port when there is reason to believe she is about to take part in such lawless enterprises. ‘When it was first rendered probable that an attempt would be made to get up another unlawful expedition against Nicaragua, the Secretary of State issued instruc tions to the marshals and district attorneys, which were directed by the Secretaries of War and the Navy to the appropriate army and navy cflicers, requiring them to be vigilant, and to use their best exertions in carrying into effect the provisions of the act of 1818. Notwithstanding these precautions, the expedition has escaped from our shores. Such enterprises can do no possible good to the country, but have already inflicted much injury both on its interests and its character. They have prevented peaceful emigration from the United States to the States of Central America, which could not fail to prove highly beneficial to all the parties concerned. In a pecuniary point of view alone, our citizens have sustained beavy losses from the seizure and closing of the transit route by the San Juan between the two oceans. The leader of the recent expedition was arrested at New Orleans, but was discharged on giving bail for hus appearance ip the jusuflicient sum of two thousand dollars. Tcommend the whole subject to the serious attention of Congress, believing that our duty and our interest, as well as our gational character, require that we should adopt such measures ax will be effectual in restraining our citizens from committing such outrages THE TREATY WITH PARAGUAY—SATISPACTION TO BE DEMANDED. Tregret to inform you that the President of Paraguay has retused to ratify the treaty between the United States and that State as amended by the Senate, the signatare of which was mentioned in the message of my predecessor to Congress at the opening of its session in December, 1853. The reasons asnigued 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 carried on until February, 1855, when, whilst in the peace- ful prosecution of her voyage ap the Parana river, the steamer was fired upon by a Paraguayan fort. The fire was returned, but as the Water Witch was of smail force, and not designed for offensive operations, she retired from the conflict. The pretext upon which the attack was made was a decree of the President of Paraguay of Octo ber, 1864, prohibiting foreign vessels of war from navi gating the rivers of that State As Paraguay, however, we owner of but one bank of the river of that name, the other belonging to Corrientes, a State of the Argentine Confederation, the right of its government to expect that such a’ decree would be obeyed cannot be ac- knowledge Water Witch was not, properly peak ing sselof war, She was axmall steamer en gaged in a scientific enterprise intended for the advantage Of commercial States generally. Under these circum #tances, I 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 were established in business in Paragnay, have bad their property seized and taken from them, and bave etherwike been treated TY authorities in an insulting and arbitrary manner, which requires redress. ‘A demand for there purposes will be inade in a firm tut conciliatory spirit. This will the more probably be grant- ed if the executive shall have authority to use other means in the event of a refusal. This is accordingly re- commended, ‘THR KANRAR QUESTION. It if unnecervary to state in detail the alarming condi- tion of the Territory of Kansas at the time of my inauga- ration. The opposing parties then stood in hostile array each other, and any accident might bave relighted flames of ctvil war. ides, at this critical moment. Kansas was left without a Governor, by the resignation of Gov. Geary. ‘On the Ith of Febraary previous, the Territorial Logis lature had passed a law providing for the election of dele gates on the third Monday of June to a convention to meet op the first Monday of September, for the purpose of fram ing a constitution preparatory te admission into the Union. ‘This law was in the main fair and just, ani itis to be re vetted that all the qualified electors not registered Gremeelver and voted under ite provisions At the time of the election for delegates, an extensive organizatian existed in the Territory, whore avowod object it was, if need be, to put down the lawful government by force, and to establich a government of their own under the eo-called Topeka constitution. The persans attached to thie revolutiopary organiwation abstained from taking any part in the election. ‘The act of the Territorial Legislature had omitted to pro- vide for submitting to the people the constitution which might be framed by the Convenwon: and in the excited state of public feeling throughout Kanaas an apprehension extensively prevailed that a design existed to force upon them @ constitution in relation to slavery against their will. In this emergency it became my duty, ax it was my unquestionable right, having in view the anion of all good citizens in support of the Territorial laws, to express an opinion on the true construction of the provisions concern ing slavery contained im the organic act of Congress of the 90th May, 1854. Congress declared it to be * the true in tent and meaning of this act not to legislate slavery into any Territory or State, nor to exclude t therefrom, but to leave the people thereof perfectly free to form and regu late their domestic institutions in their own way.” Under it Kansae, “ when admitted as a State,” was to “ be re ceived into the Union, with or without slavery, as their constitution may prescribe at the time of their admission.’ Did Congress mean by this language that the delegates elected to frame a constitution should have authority final ly to decide the question of slavery, or did they intend, by leaving it to the people, that’ the people of Kansas themselves should decide this question by a direect vote’ On this subject T confess I had never entertained a serious doubt, and therefore, in my instrnctions to Governor Walker of the 28th March last, merely said that when “ aconstitation shall be submitted to the people of the Territory, they must be protected in the exorcise of their right of voting for or oe that instrument, and the fair wi expression of the popular will must not be interrupted by fraud or violence,” In expressing this jon it was far from my intention to interfere with the decision of the people of Kansas, either for or against slavery. From this I have always carefully abstained. Entrusted with the duty of taking “care that the laws be faithfully executed,” sire was that the people of Kansas should furnish to Con gas evidence required by the organic act, whether far ot against slavery, and in manner amooth their passage into the Union. In emer from the condition jence into that of « sovereign State, it was their duty, in my opinion, to make known their will by the votes of the majority, on the direet question whe: ther this domestic inetitation should or shonld not continue to exist. Indeed, thie was the anly possible = in which their will could be authentically ascer tained. The election of delegates to a Convention must necessa- ee a separate districts. Trom this cause it may readily happen. been the case, that « hy od a a FN yd or Territory are on one side of a question, whilet a majority of the representa. tives from the wevoral districts into which it is divided may be upon the other side. This arises from the fact that in some districts delegates may be elected by small majoritie’, whilet in others thoee of different sentiments my only de- f | | jority may receive majo sufficiently great not only to over- come the moe oo for en former, but an, a large majority of the whole people in direct. opposition to a ma- of the d Besides, our history proves that influences may be brought to bear on the representative sufficiently powerful to induce him to disregard the will of his conatituenta. The truth i#, that no other authentic and satisfactery mode exists of ascertaining the }will of a majority of thé people of any State or ‘Territory on an im- portant and exciting question like thatof slay: in Kan. sas,except by leaving it to a direct vote. How wise, then, was it for Congress to pass over all subordinate and intermediate agencies, and proceed directly to the source ‘of all legitimate power under our institutions! How vain would apy other principle prove in practice, This may be illustrated by the case of Kansas, Should she be admitted into the Union, with a constitution either ‘maintaining or abo} very, against the sentiment of the people, this could have no other effect than to con- tinue and to éxasperate the existing agitation during the brief period required to make the constitution conform to the irresistible will of the majority. ‘The friends and supporters of tae Nebraska and Kansas act, when Strugpling onarecent occasion to sustain its wise provisions before the great tribunal of the American people, never differed about its true meaning on this sub. ject. Everywhere throughout the Union they publicly ledged their faith and their honor that they would cheer- ully submit the question of slavery to the decision of the bona fide people of Kansas, without any restriction or qua- lifleation whatever. All were cordially united the great doctrine of popular sovereignty, which is the vital | sae a of our free institutions. Had it been insinuated om any quarter that it would be a suilicient compliance with the requisitions of the organic law for the members of a convention, thereafter to be elected, to withhold the question of slavery from the people, and tosubstitutetheir own will for that of a legally ascertained majority of all their constituents, this would have been instantly roject- ed. Everywhere they remained true to the resolution adopted on a celebrated occasion recognizing ‘the right of the people of all the Territories—ingluding Kansas and Nebraska—acting threugh the legally and fairly ex- pressed will ofa majority of actual residents, and when. ever the number of their inhabitants justifies it, to form a constitution, with or without slavery, and be admitted into the Union upon terms of perfect equality with the other States.’” The Convention to frame a conetitntion for Kansas met. on the first Monday of September last. They were called together by virtue of an act of the Territorial Legislature, whose lawful existence had heen recognized by Congress in different forms and by different enactments. A largo proportion of the citizens of Kansas did not think proper to register their names and to vote at the election for delegates; but an opportunity to do this having been fairly afforded, their refural to avail themselves of their right could im no manner affect the legality of the Convention. This convention proceeded to frame a constitution for Kansas, and spn Ei say bane on the 7th day af Novem- ber. But little difficu! peccaiten in the convention, ex- cept on the subject of slavery. The truth is that tho gengral provisions of our recent State constitutions are 80 Sinfiar-and, I may add, 80 excellont—that the diffe- rence between them is not essential. Under the earlier practice of the government, no constitution framed by the convention of a Territory preparatory to its admission into the Union as a State had been sn>mitted to the foo ple. I trust, however, the example set by the last Con- gress, requiring that the constitution of Minnesota “ghould be subject to the approval and ratification of the people of the proposed State,” may be followed on future occasions. I took it for granted that the convention of Kansas would act in accordance with this example, found. ed. as it is, on correct principles; and hence my instruc- tions to Governor Walker, in favor of submitting the con stitution to the people were expressed in general and un qualified terms. In the Kansas-Nebraska act, however, this requirement, 4s applicable to the whole constitution, had not been in serted, and the convention were not bound by its terms tosnbmit any other portion of the instrument to an elec- tion, except that which relates to the “domestic institu- tion’ of slavery. This will be rendered clear by a simple reference to its language. It was “not to logislate slavery into any Territory or State, nor to exclude it therefrom, but to leave the people thereof perfectly free to form and — institutions in their own way.’’ have a direct as they have words ‘domestic institutions an appropriate reference to slavery. ‘Domestic institu tions” are limited to the family. relation Taster and slave and afew others are ‘demest tions,”’ and are entirely distinct from institutions of a po litical character. Besides, there was no question then be fore Congress, nor indeed has there since been any se rious question before the people of Kansas or the country, except that which relates to the “domestic institution’ of slavery. The Convention, after an angry and excited debate, finally determined, by majority of only two, to submit the question of slavery to the people, thor ugh ‘at the last forty three of the fifty delegates present atfixed their sig- natures to the constitution. ‘A large majority of the Convention were in favor of establishing slavery in Kansas, y accordingly in- serted an article in the constitution for this purpose wimi- lar in form to those which been — by other Territorial conventions. In the schedule, however, pro- viding for the transition from 4 Territorial to a State go. vernment, the quesiion has been fairly and explicitly re- ferred to the people, whether they will have a constitu tion “ with or without slavery.”’ It declares that, before the constitution adopted by the Convention * shall to Congress for admission into the Union as a Stat election shall be held to decide this question, at which all the white male inhabitants of the Territory above the age of 21 are entitled to vote. They are to vote by ballot; and “the ballots cast at said election shall be endorsed ‘constitution with slavery,’ and ‘constitution with no slavery.’”’ If there be a majority in favor of the “con. stitution with slavery,” then itis to be transmitted to Congress by the President of the Convention in its original form. If,on the contrary, there shail pe a majority in favor of the “constitution with noslavery,’’ © then the article providing for slavery «ball be stricken from the constitution by the President of this Convention:,’ and it is expressiy declared that ‘no slavery shall exist in the | State of Kansas, except that the right of property in slaves now inthe Territory shall in no manner be interfered with,’ and in that event it is made his duty to have the constitution thus ratified transmitted to the Congress of the United States for the admission of the State into the Union. At this election every citizen will have an opportanity of expressing his opinion by his vote ‘whether Kansaa shall be received into the Union with or without slavery,” and thus this exciting question may be peacefully settl in the very mode required by the organic law. The ele tion will be held ander legitimate authority, and if any portion of the inhabitants shall retuse to v ® fair op- ortunity to do so having been presented will be heir own voluntary act, and they alone will be responsi- mences. ble for the conseq! 5 Whether Kansas shail be a free or as! State must eventually, under some authority, be decided by an election; and the question can nover be more clearly or distinctly presented to the people than it is at the present moment. Should thie opportunity be rejected, she may be involved for years in discord, and possibly in civil war, before she can again make up the issue now so fortunately tondered, and again reach the point she has already Kansas bas for some years occupied too much of the iblic attention. Tt is bigh time thie should be directed 0 far more important objects. When once admitted into the i heron ter oe a or —— Cad 2 the excite. ment Tr own limite will speedi away, and the will then for the first time be left. ke she pth wo have been long since, to manage her own affairs in her own way. If her constitution on the subject of slavery, or on any other subject, be displeasing toa majority of the people, no human cap prevent them From changing it within a brief period. Under these circum stances, it may well be questioned whether the peace and juiet of the whole country are not of greater importance thea the mere temporary triumph of either of the politi- cal par'ies in Kansas, Should the constitution without slavery be adopted by the votes of the majority, the rights of property in slaves now in the Territory are reserved. The number of those is vory emall; but if it were greater the provision would be equally just and reasonable. These slaves wore brought, into the Territory under the constitution of the United States, and are now the property of their masters This point has at length been finally decided by the tnigh ext judicial tribunal of the country—and this upon the plain principle that when a confederacy of sovereign Mates acquire a new territory at their joint expense, both Trt and justice demand that the citizens of one and all of them shall have the right to take into it whatso- ever is recognized ax property by the common constiti: tion. To have summarily confiscated the property in slaves already in the Territory, would have been an act of grows injustice, and contrary to the practice of the oldor States of the Union which have abolished slavery CUTAN TERRITORY THY MORMON Wan A territorial government was established for Utab by act of Congress approved the th of September, 1850, and the constitution and laws of the United States were there- by extended over it “so far aa the same, or any provi sions thereof, may be applicable,” This act provided for the appointment by the President, by and with the ad vice and consent of the Senate, of a governur, who was to be ex officia Superintendent of Indian Affine, a secre tary, three Judges of the Supreme Court, a MMltshal and a District Attorney. Subsequent acte provided for the ap. pointment of the officers necessary to extend our land and our Indian system over the territory. Brigham Young was appointed the first governor on the 20th Sept , 1850, and has held the office ever since. Whilet Gover en both Governor and Superintendent throughout this period, be has been at the eame time the head of the church called the Latter-Day and professes to govern ita mombers and diapose of it property by direct inspiration and authority from the Almighty. His power been, therefore, absolute over both Church and State. The people of Utah almost exclusively belong to this church, and believing with «fanatical spirit that he is Governor of the ritory by divine appointment, they obey his commaff® ax if they were direct revelations from Heaven. If, therefore, he choses that his government shall come into collision with the of the Uni- ted States, the members of the Mormon ehareh will yield implicit obedience to his will. Unfortunately, existing facts leave but little doubt that such ia his determination. Withont entering upon a minute history of securrences, it i* sufficient to say that all the officers of the United faates, judicial and executive, with the single exception of two Indian agents, have found it necessary for their own personal safety to withdraw from the Territory, and there no remains any government in Utah but the despotism of Brigham Young. This being the condition of affairs in the Territory, | could not mistake the path of duty. As chief executive magistrate, I was bound to restore the supremacy of the constitution and laws within its limite. In order to effect this purpose, T appointed a new Governor and other federal officers for Utah, and sent with them a military force for their protection, and to aid ae & posse conmitatus. iD case of need, in the execution of the jawe. With the religious opinions of the Mormons, as long as they remained mere opinions, however deplorable in themselves and revolting to the moral and religious sen- Uments of all Christendom, I had no right to interfere. Actions alone, when in violation of the constitution and Jaws of the United Btates, become the legitimate subjects for the juriadiction of the civil magistrate. My inatruc- tions to Governor Cumming have therefore been framed in strict accordance with these principles. At their date ahope was indulged that no necessity might oxiet for em- ploying the military in restoring and the authority of the law; but ee bone Dae now vi 5 Goy. Young bas, by proclamation, declared his determi- pation to maintain bis pree by force, and has already committed acts of hostility against the United States. Unless he should retrace bis steps, the Territory of Utab will be in a state of open rebellion. He has committed these acts of open hostility, notwithstanding Maj. Van Vilet, offiger of the army, sent to Utah by the commanding General to purchase provisions for the troops, bad given him the strongest aaaurances of the peaceful intentions of the government, and that the troops would only be em- ployed as a posse comitatus when called on by the civil au thority to aid in the execution of the laws. ‘There is no reason to believe that Gov. Young has long contemplated this result. He knows that the continuance of his despotic power depends upon the exclusion of all settlers from the Territory except those who will ac- knowledge his divine mission, and implicitly obey his will ; and that an enlightened public opinion there would soon prostrate institutions at war with the lawa both of God and man, He has therefore for several years, in order to maintain his independence, been industrious: employed in collecting and fabricating arms agd i tions of war, and in disciplining the Mormons for mfli- Per service. As superintendent of Indian affairs, be has an opportunity of tampering with the Indian tribes and exciting their hostile feelings against the United ‘States. This, according to our information, he has ac- complished in regard to some of these tribes, while others have remained true to their aliegiance, and have commu- nicated his intrigues to our Indian agents, He has laid in a store of provisions for three years, which, in case of ne- cessity, as he informed Major Van Viiet, he will conoeal. “and then take to the mountains, and bid’ deflance to ali the powers of the government.” A great part of all this may be idle boasting; but yet no wise government will lightly estimate the efforts which may be inspired by such phrensied fanatieem ag exists among the Mormons in Utah. This is the first re- bellion which has existed in our Territories; and haman- ity itself requires that we should put itdown im such @ manner thatit shall be the last. To trifle with it would be to encourage it and to render it formidable, We ought to go there with such an imposing force ag to convince these deluded people that resistance would be vain. and thus spare the effusion of blood. Wo can in thia manner best convince them that wo aro their friends, not their enemies. In order to accomplish thia object it will be necessary, according to the estimate of the War Depart- ment, to raise four additional regiments; and this [earnest- ly recommend to Congress. At the present moment of lepression in the revenues of the country I am sorry to be obliged to recommend such a measure, but I feel con- fident of the support of Congress, coat what it may, in suppressing the insurrection and {n restoring and maun- taining the sovereignty of the constitution and laws in the Territory of Utah. NEW TERRITORY OF ARIZONA, Trecommend to Congress the establishment of a Terri torial government over Arizona, incorporating with it such portions of New Mexico as they may deem expedient. Inced scarcely adduce arguments in support of thie re- commendation: We are bound to protect the lives and the property of our citizens inhabiting Arizona, and these are now wit it any eMicient protection. present mber is already considerable, and is rapidly increas. ing, notwithstanding the disadvantages under which they labor. Besides, the proposed Territory is believed to be rich in mineral and agricultural resources, especiall: silver and copper. ‘The mails of the United Statas to Cali- fornia are now carried over it throughout Hts whole extent, and this route is known to be the nearest, and believed to be the best, to the Pacific. TUE PACIFIC RAILROAD. Long experience has deeply convinced me that a strict construction of the powers grantod to Congress only true, a8 well as the only safe, theory of the sonstite tion, Whilst this prineiple shall’ guide my public con- duct, Iconsider it clear that under the war making power Congress may appropriate money for the construction of & military road through the territories of the United States, when this is abselutely necessary for the defence of any of the States against foreign invasion. The con- has conferred upon Congress power “to declare nd support armies,” ‘to provide and tain a navy, ‘all forth the militia to “repel invasions.” These high sovereign powers necessarily in- volve important and respon public duties, and among them there is none 0 sacred and so imperative ms that of preserving our soil from the invasion of a foreign enemy. The constitution has, therefore, left nothing on this point to construction, but expressly requires that * the United States shall protecteach of them (the States) against invasion.” Now, ifa military road over our own territories be indispensably necesvary to enable ux to meet and repel the invader, it follows ag a nooseary consequence not only that we possess the power, bot it i# our imperative duty to construct such a road. It would be an absurdity to investa government with the unium ited power to make and conduct war, and at the samo time deny to it the only means of reaching and d the enemy at the frontier. Without such a road it is quite evident we cannot “protect”? California and our Pacific possessions “‘against invasion.” We canriot by any other means transport men and munitions of war from the Aflantic States in sufficient time successfully to defend these remote and distant portiona of the ré- public. Experience has proved that the routes acroes the Ieth mus of Central America are at best but a very uncertain and unreliable mode of communication. But ewen if this were not the case, they would at once be closed aginst us in the event ‘of war with a uaval power so mach stronger than our own as to enable it to blockade the at either end of these routes. After all, therefore, we can only rely upon @ military road through our own % | ries; and ever since the origin of the government Congress bas been in the practice of appropriating mouey from the public Treasury for the construction of such roade. The difficulties and the expense of constructing a mili- tary railroad to connect our Atlautic and Pacific States have been greatly exaggerated. Tho distance on the Arizona route noar the 2d paratlel of north latitude, be- tween the western boundary of Texas on the Rio Grande and the eastern boundary of California on the Colorado, from the best explorations new within our knowledge, does not exceed four hundred and seventy miles, and the face of the country is, in the main, favorable. For obvi- ous reasons the government ought not to undertake tho work itself by means of its own agents. This ought to be committed to other agencies, which Congress might assist either by grants of land or money, or by both, apon such terms and conditions as they may deem most bane ficial for the country. Provision might thus be mado not only for the safe, rapid and economical traneporta- tion of troops and munitions of war, but alao of the pab- Ne mals. = peamerctal interests of the whole coun- try, both Fast ‘est, would ly promoted by sich s rout, sad above’ ail k woall be & powerful ad ditional bond of union. And although advantages of thie kind, whether postal, commercial or political, cannot oon- fer constitutional power, yet they may furnish auxiliary arguments in favor of expéditing & work which, in my d , 8 clearly embraced within the war making power For these reasons I commend to the friendly considera. tion of Congress the subject of the Pacific railroad, without finally committing myself to auy particular route. THR FINANCES OF TH GOVERNMENT. ‘The report of the Secretary of the Treasury will fur- nish a detailed statement of the condition of the public finances and of the respective branches of the public ser. ‘ice devolved upon that department of the government By this report it appears that the amount of revenue re. ceived from all sources into the treasury during the fiscal yenr ending the 20th June, 1867, was sixty-eight million #ix hundred and thirty one thousand Ove hundred and thirteen dollars an! sixty “even cente, (968,631,513 67,) which amount, with the balance of nineteen mil tion nine hundred and one thoneand three hundred and twenty-five dollars and forty five cents, ($19,901,. 2h 45,) remaining in the treasury at the commencemen of the year, made an aggregate for the service of the of eighty eight million five hundred and thirty two ‘ sand eight hupdred and thirty-nine dollars and twelve conte, ($88,632,839 12.) ‘The public expenditures for the fiscal year ending 30th Jone, 1867, amounted to seventy million eight hundred and twenty two thousand seven hundred and twenty four dollars and eighty five cents, ($70,829,724 85,) of which five miion nine hundred and forty-three thousand cight hundred and ninety six dollars and ninety.one cents ($5,945,896 01) were appliod to the redemption ef the pub- lie cebt, including interest and premiom, leaving in the trearury at the commencement of the present flacal year on the ist July, 1857, seventeen million seven hundred end ten thousand one hundred and fourteen dollars and twenty eeven cents, ($17,710,114 is ‘The receipts into the wary for the firet quarter of the present fiscal year, commencing Ist July, 1867, were wenty million bine hundred and twenty nine thousand eight hundred and nineteen dollars and eighty one cents ($20,920,810 81), and the estimated —— of the re- maining three quarters to the 30th June, 1855, are thirty- six million seven hundred and fifty thousand dollars (996,750,000), making with the balance before stated an aggregate seventy five million three hundred and eighty nine thousand pine hundred and thirty fonr dollars and eight cents ($75,380,994 08), for the service of the present fiscal year ‘The actual expenditures during the first quarter of the Present fiacal year were twenty three million seven bun- be dred and fourte ss nd five hundred and twenty eight doliars and thir 4,528 37,) of which three million «i rm | five thousand two hundred anv rs thirty-nine cents (88,806,292 0) were applied to the redemption of the public debt, jaclnding interest and premium. ‘The expepditures of the remaining three quar- $68, are Afty ome milliens two ban- eight thousand tive hundred and thirty dollars and fonr cents ($51,248,690 04), imeluding inter. he public debt, making an of seventy « nine hundred end sixty three thousand fifty lars and forty-one cents ($74,009,068 41), leaving an estimated balance in the tre@ury at close of the present fiscal year of ( hundred and twenty. Re thousand eight hundred an amount of the pablic debt at the commencement of the (present fiscal year was twouty nine mailions sixty thousand three hundred and cighty six dollars and ninety crate, (one 00 588 90.) a @ amount redeemed since the Ist of Jul: three million eight hundred and ninety five taoecane we bun. dred and thirty two dollars and thirty nae ceute ($3,896, 823 3®)—Icaving » balance unredeemed at this time of — five rr = hundred and sixty-five thousand one hundred and fifty four dollars and afy (426,165,154 51.) <iginlaccoeas ISRUK OF TREASURY SOTES RRCOMWRNDED, The amount of estummte:! expenditures for the Teman Dg