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speed. raCHES'gR JOURNAL. Thursday, Dec 17th. PRESIDENTS MESSAGE. Qtnllemen nf the Senate, . . . and of th Haute of Kepre$etalivei : Id obedience to the command of the Constitution, it has now become my duty "to give to Congress information of the state of the Union, and J0001 mend to their consideration such measures as I judge to be "necessary and expedient" But first, and above all, our thanks are due to Almighty God for the numerous benefits which He haa bestowed upon this people, and our united prayers ought to ascend to Him that He would con tinue to bless our great republic in time to come aa lie haa blessed it in time past. Since the adjournment of the last Congress our eanstitueota hare enjoyed an unusual degree of of health. The earth has yielded ber fruit abun dantly, and has bountifully rewarded the toil of the husbandman. Our great staples nave commanded high prices, and, up to within a brief period, our manufacturing, mineral and mechanical occupa tions hare largely partaken of the general pros perity. We have possessed all the elements of ma terial wealth in rich abundance, and yet, notwith standing all these advantages, our country, in Us monetary interests, is at the present moment in deplorable condition. In the midst of unsurpassed plenty In all the pro ductions of agriculture and in all the elements of national wealth, we find our manufactures suspend ed, our public works retarded, our private enter prise ot different kinds abandoned, and thousands of useful laborers thrown out of employment and reduced to want. The revenue of the tjoveenment, which U chiefly derived from duties on imports from broad, haa been greatly reduced, whilst appropria tion made by Congress at its last session for the current fiscal year are very large in amount. Under these circumstances a loan msy be requir ed before the close ot your present session; but this, although to be deeply regretted, would prove to be only a slight misfortune when compared with the Buff-ring and distress prevailing among the peo ple. With this the government cannot fail to deep ly symphatize, though it may be without the power to extend relief. It is our duty to enquire what has produced such unfortunate results, and whether their recurrence can bd prevented? In all former revulsions the blame might have been faiily attiibuU-d to a varie ty of co-operating causes; but not so upon the pres ent occasion. It is apparent that our existing mis fortunes have proceeded solely from our extrava gant and vicious system of paper currency and bank credit, 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 paper currency and bank loans and discounts of the country shall be left to the discre tion of fourteen hundred irresponsible banking insti tutions which from the very law of their nature will consult the interest of their stockholders rather than the public welfare. The frame ra of the Constitution, when they gave to Congress the power "to coin money and to regu late the value thereof," and prohibited the States from coining money, emitting bills of credit, or ma king 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 irre deemable paper currency. They are not responsi ble for an existing anomaly that a government en dowed with the sovereign attribute ot coining mon ey and regulating the value thereof should have no power to prevent others from driving this coin out f the country and filling up the channels of circu lation with paper which does not represent gold and silver. It is one of the highest and most responsible du ties of the government to insure to the people a sound circulating medium, the amount of which ought to be adapted with the utmost possible wis dom and skill to the wants of the internal trade and foreign exchanges. If this be either greatly above or greatly below the proper standard, the marketa ble value ot every man's property is increased or dlminwhed in the same proportion, and ii justice to individuals as well as incalculable evils to the com munity are the consequences. Unfortunately, under the construction of the Federal Constitution, hich has now prevailed too long to be changed, this important and delicate du tr'has been dissevered from the coining pow. r and virtually transferred to more than fourteen hundred State banks, acting independently of each other, and regulating their paper issues almost exclusive ly by a regard to the present Interest of their stock bo ders. Exercising the sovereign power of pro viding a paper currency, instead of coin, for the country, the first duty which these banks owe to the public is to keep in their vaults a sufficient amount of gold and silver to insure the convertibili ty of their notes into coin at all times and under all circumstances. No bank ought ever to be charter ed without such restrictions on its business as to se cure this result. All other restrictions are compar atively vain. This is the only true touchstone, the only effi cient regulator of a paper currency the only one which can guard the public against over issues and bank suspensions. As a collateral and eventual se curity it is doubtless wise, and in all cases ought to be required, that banks shall hold an amount of United Slates or State securities equul to their notes In circulation and pledged for their redemption. This, however, furnixhes no adequate security gainst over-issues. On the contrary, it mav be perverted to inflate the currency. Indeed, it is pos sible 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 redeem them. However valuable these securities may be in the.otielves, they cannot be converted into gold and silver at the moment of pressure, as our experience : teaches, in sufficient time to prevent bank suspen sions and the depreciation of bank notes. In Eng land, which is to a considerable extent a paper mon ey country, though vastly behind our owu in this respect, it was deemed advisable, anterior to the etof Parliament of 1844, which wisely separated the issue of notes from the banking department, for the Bank of England always to keep on hand gold and silver equal to one-third of its combined circu lation and deposits. If the proposition was no more than pufficient to scare the convertibility of its notes, with the whale Of Great Britain, and to some extent the continent ef Europe as a field for its circulation, rendering it almost impossible that a sudden and immediate run to a dangerous amount should be made upon it, the ease proportion would certainly be insufficient un der our banking system. Each of our fourteen hundred banks has but a limited circumfreence for Its circulation, and in the course of a very few days the: depositors and note holders might demand from such a bank a sufficient amount in specie to compel it to suspend, even although it had coin in its vaults equal to one-third of its immediate liabilities. Aad yet I am not aware, with the exception of the banks of Louisiana, that any State bank through out the Union has been required by its charter to keep this or any other proportion of gold and silver compared with the amount of its combined circula tion and deposits. What has been the consequence?? a a recent report made by the Treasury Depart "et on the condition of the Banks throughout the different States, according to returns dated January, 1847, the aggregate amount ot actual specie in Weir vaults is 158,349,838, of their ciiculation 14,778,822, and of their deposits 8230,851,352. Thes it appear that these banks in the aggregate have considerably less than one dollar in seven of gold and silver compared with their circulation and deposits. It was probable, therefore, that the very first Pressure must drive them to suspension, and de prive the people of a convertible currency with all disastrous consequences. It is truly wonderful that they should have so continued to preserve their credit, when a demand for the payment of one seventh of their immediate liabilities would have driven them into insolvency. And that is the con dition of the banks, notwithstanding that four hun dred millions of gold faora Calilornia have flowed in uPn s within the last eight years, and the tide still vuuuuuea io now. indeed, such has been tne ex travagance of the bank credits that the banks now hjd a considerably less amount of specie, either in trayagance of t hjjid a consider rproportiou to tl W deposits combii ry of gold in 4 WhiUt in th( . V - m to tneir capital or to their circulation ana combined, than they did before the discov- in vauiornia. the year 1848 their SDecie in Dropor- tioa) to their capital waa more than equal to one dol- larior lour ana s balffna 1857 it does not amount to one dollar for every six dollars and thirty-three etataot their capital. In the year 1848 the specie as equal within a vtry small fraction to one dollar five of their circunUon and deposits; in 1857 it I sot equal to one dolKr in seven and a half of their lauoa and deposits. from this statement its. easy to account for our fcsncUl history for the la, forty years. It has been b'mtory of extravagant expansions jn the business a the country, followed by ruinous contractions. AJeseeessive intervals the by and most enterpris Ingmm have been tempted W their ruin by exces. wive hank loans of mere paper Sdit, exciting tnem toeslravagant importations of VtiRn goods, wild afeealations, and ruinlo.ua and dey,raijzi0g nock- . . nhtn th Maia arrtw : : . (ssshting. mut, the banks can extend no relief, u,. people la a vaia struggle to redeem their liabug m specie, UtA til MmntMM thai. In . -I the are compelled to contract their lo, and their amass- and at last in the hour of distress, Den their 1 . . 1. more needed. thow and the, ja.. (anther sink Into Insolvency. . h u this paper system of extravagant eiPsgjoD, ilia., the nominal price of every article far bona Sajsl le. when compared with the eost of t. Bar articles in countries whose circulation is wisely regulated, which has prevented us from competing in our own market with foreign manufacturers, has produced extravagant importations and has counter acted the effect of the large incidental protection atlorded to our domestic manufactures by the pre sent revenue tariff. But for this the branches of our manufactures composed of raw materials, the production of our own country such as cotton, iron and woollen fabrics would not only have ac quired almost exclusive possession of the home market, but would have created for themselves a foreign market throught the world. Deplorable, however, as may be our present fi nancial condition, we may yet indulge in bright hopes of the future. No other nation has ever existed which could have endured such violent expansions and contractions ot paper credit with out lasting injury; yet the boujancv of youth the energies of our population, and the spirit which never quails before difficulties, will enable us soon to recover from our present financiol em barrassment, aod may even occasion us speedily to forget the lesson which they have tauel t In the meantime it is the duty of the govern ment by all proper means within its power, to aid in alleviating the sufferings of the people, occa sioned by the suspension of banks, and to provide against a recurrence of the same calamity. Unfor tunately, in either aspect of the case, it can do but little. Thanks to the independent treasury, the government has not suspended payments, as it was compelled to do by the failure of the banks in 1837 It will continue to discharge its liabilities to the people in gold and silver. Its disbursements in coin will pass into circulation, and materially assist in restoring a sound currency. From its high'cred it, should we be compelled to make a temporary loan, it can be effected on advantageous terms. This, however, shall, if possible, be avoided; but if not, then the amount shall be limited to the lowest practicable sum. I have, therefore, determined that whilst no use ful government works already in progress shall be suspended, new works not already commenced, will be postponed, if this can be done without injury to the country. Those necessary for its defence shall proceed as though there had been no crisis in our monetary affairs. But the Federal Government cannot do much to provide against a recurrence of existing evils. Even it insurmountable constitutional objections did not exist against the creation of a National Bank, this would furnish no adequate preventive security. The history of the last bank of the United States abun dantly pi oves the truth of this assertion. Such a bank could not, if it would, regulate the issues and credits of l,4uu state banks, in such a manner as to prevent the ruinous expansions and contractions in our state banks which afflicted the country during the existence of the late bank, or secure us against future suspensions. In 1825 an effort was made by the Bank of England to curtail the issues ot the country banks under the most favorable circum stances. The paper currency had been expanded to 8 ru inous extent, and the bank put forth all its power to contract it in order to reduce prices and restore the equilibrium of foreign exchanges. It accord ingly commenced a system of curtailment of its loans and issues, in the vain hope that the joint stock and private banks ot the country would be compelled to follow its example. It found, howev er, that as it contracted they expanded, and at the end of the process, to employ the language of very high official authority, "whatever reduction of the paper currency waa effected by the bank of England in 1825 was more than made up by the is sues ot the country banks." But the Bank of the United States would not, if it could, restrain the losses and loans of the State banks, because its duty as a regulator of the cur rency must often be in direct conflict with the im mediate interests of its stockholders. If we ex pect one agent to restrain or control another, their interest must, at least in some degree, be antagonis tic. But the directors of a Bank of the United States would feel the same interest and the same in clination with the directors of the State Banks to expand the currency to accommodate their favorites and friends with loans, and to declare large divi dends. Such has been our experience in tegard to the last Bunk. After all, we must mainly depend upon the patri otism and wisdom of the States for the prevention and redress of the 'evil. If they will afford us a specie basis for our paper circulation by increas lug the denomination of bank notes, first to twenty and afterwards to fifty dollars ; if they will require that the bankj shall at all times keep on hand at least one dollar in gold or silver for every three dollais of their circulation and deposites ; and if they will provide by a self-executing enactment, which nothing can arrest, that the moment they sus pend they shall go into liquidation, I believe these provisions, with a weekly publication by each bank of a statement of its condition, would go far to se em e us against future suspensions of specie -payments. Congress, in my opinion, possesses the power to pass a uniform bankrupt law. applicable to all bank ing institutions throughout the Uuited Slates, and I strongly recommend its exercise. This would make it the irreversible organic law of each bai k's exist ence, that a suspension of specie payments shall produce its civil death. The instinct of self preser vation would then compel it to perform its duties in such a manner as to escape the penalty and preserve its life. The existence of banks and the circulation of bank paper are so identical with the habits of our people, that they cannot at this day be suddenly abolished without much immediate injury to the country. If we could confine them to their appro priate sphere, and prevent them from administering to the spirit ot wild and reckless speculation by ex travagant loans and issues, they might be continued with advantage to the public. But this I say, after long and much reSection: if experience shall prove it to be impossible to enjoy the facilities which well regulated banks might af ford, without at the same time suffering the calami ties which the excesses of the banks have hitherto inflicted upon the country, it would then be far the lesser evil to deprive them altogether of the power to issue a paper currency and confine them to the functions of banks of deposit and discount. Our relations with foreign governments are, upon the whole, in a satisfactory condition. The diplomatic difficulties which existed between the government of the United States and that of Great Britain at the adjournment of the last Con gress have been happily terminated by the appoint ment ot a Briti.-h minister to this country, who has been cordially received. Whilst it is greatly to the interest, as I am con vinced it is the sincere desire of the governments and the people of the two countries to be on terms of intimate friendship with each other, it has been our mi.-fortune almost always to hnve had some irri tating, it not dangerous outstanding question with Great Britain. Since t. e origin of the government we have been employed in negotiating treaties with that power, and afterwards in discussing their true intent and meaning. In this respect, the convention of April 1, 185i, commonly called the Clayton and Bulwer treaty, has been the most unfortunate of all; be cause the two governments place directly opposite nd contradictory constructions upon its first and most important article. Whilst, in the United States, we believed that this treaty would place both powers upon an ex act equality by the stipulation that neither will ever "occupy, or forfeit, or colonize, or assume, or exer cise any dominion" over any part of Central Ameri ca, it is contended by the British Government that the true construction of this language has left them in the rightful possession of all that portion of Cen tral America which was in their occupancy at the date of the treaty; in fact, that the treaty is a vir tual recognition on the part of the United States of the right of Great Britain, cither as owner or pro tector, to the whole extensive coast of Central America, sweeping round from the Rio Hondo to the port and harbor of San Juan del Nicaragua, to gether with the adjacent Bay islands, except the comparatively small portion of this between the Sarstoon and Cape Honduras. According to their construction, the treaty does no more than simply prohibit them from extending their possessionem Central America beyond the presents limits. It is not too much to assert that if in the United States the treaty had been considered susceptible of such a construction, it never would have been negotiated under tee authority of the President, nor would it have received the approbation of the Senate. The universal conviction in the United States was, that when our govornment consented to vio late its traditional and time honored policy, and to stipnlate with a foreign government never to occu py or acquire territory in the Central American por tion of our own continent, the consideration for this sacrifice was that Great Britain should, in this res pect at least be placed in the same position with ourselves. Whilst we have no right to doubt the sincerity of the British government in their con struction of the treaty, it is at the same time my deliberate conviction that this construction is in op position both to its letter and its spirit. Under the late administration negotiations were instituted between the two governments for the purpose, if possible, of removing these difficulties, and a treaty having this laudable object in view; was signed at London on the 17 th October, 1856, and waa submitted by the President to the Senate on the following 10th of December. Whether this treaty, either in its original or amended form, would have accomplished the object intended without giv ing birth to new embarrassing complication between the two governments, may, perhaps, be well ques tioned. Certain it is, however, it was rendered much less objectionable by the different amend ments made to it by the Senate. The treaty, as amended, was ratified by me on the 12th of March, 1857, and was transmitted to Lon don for ratification by the British government. That government expressed its willingness to concur in 11 the amendments made by the Senate, with the single exception of the clause relating to Ruaton and the other islands in the Bay of Honduras. The article in the original treaty, as submitted to the Senate, after reciting that these islands and their in habitants "having been by a convention bearing date the 27th day of August, 1856, between her Britan nic Majesty and the republic of Honduras, constitu ted and declared free territory under the sover eignty of the said republic of Honduras," stipulated that "the two contracting powers do hereby mutu ally engage to recognize and respect in all future time the independence and rights of the said free territory as a part of the republic of Honduras." Upon an examination of this convention between Great Britain and Honduras of the 27th August, 1356, it was found that, whilst declaring the Bay islands to be "a tree territory under the sovereignty of the republic of Honduras," it deprived that re public of rights without which its sovereignty over them could scarcely be said to exist. It divided them from the remainder ot Honduras, and gave to its inhabitants a separate government of their own, with legislative, executive and judicial officers elect ed by themselves. It deprived the government of Honduras of the taxing power in every form and exempted the peo ple of the island from the performance of military d Jty except for their own exclusive defence. It also prohibited that republic from erecting fortifications upon them for their protection thus leaving them open to invasion from any quarter; an 1, finally, it provided that "slavery shall not at any time hereaf ter be permitted to exist therein." Had Honduras ratified the convention, she would have ratified the establishment of a state substan tially independent within her own limits, and a state at all times subject to British influence and control Moreover, had the United States ratified the treaty with Great Britain in its original form, we should have been bound "to recognise and respect in all future time" these stipulations to the prejudice of Honduras. Being in direct opposition to the spirit and meaning of the Clayton and Bulwer treaty, as understood in the United States, the Senate rejected the entire clause, and substituted in its stead a sim ple recognition of the sovereign right of Honduras to these islands in the following language: "The two contracting parties do hereby engage to recognise and respect the islands of Ruatan, Bonaco, Utila, Barbaretta, Helena and Morat, sitoate in the Bay of Honduaas, and off the coast of the Republic of Hon duras, as under the sovreignty and as a part of the said republic ot Honduras. Great Britain rejected this amendment, assigning as the only reason, that the ratifications of iiie'con vention ot the 27th August, 1S56, between her and Honduras, had not been "exchanged, owing to the hesitation of that government," Had this been done, it is stated that "her Majesty's government would have had little difficulty in agreeing to the modifica tion proposed by the Senate, which then would have had in effect the same signification as the origiual wording." Whether this would have been the ef fect; whether the mere circumstance of the ex change of the ratifications of the British convention with Honduras prior in point of time to the ratifica tion of our treaty with Great Britain would, "in ef fect," have had "the same signification as the ori ginal wording," and thus 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 re jecting the treaty as amended, proposed to enter in to a new treaty with the United Slates, similar in all respects to the treaty which they had just refused to ratify, if the United States would consent to add to the Senate's clear and unqualified recognition of the sovereignty of Unndura3 over the Bay Islands, the following conditional stipulation. "Whenever and so soon as the republic of Honduras shall have con cluded and ratified a treity with Ores'. Britain, by which Great Britain shall have ceded, and the re public of Honduras shall have accepted the said is lands, subject to the provisions aud C3uditions con tained in such treaty ." The proposition was, of course, rejected. After the Senate had refused to recognize the British con vention with Honduras of the 27th August., 1856, with full knowledge of it contents, it was impossi ble for me, necessarily ignorant of "the provisions and conditions" which might be contained in a fu ture convention between the same pai ties, to sanc tion them in advance. The fact is, that when two nations, like Great Britain and the United States, mutually desirous as they are, and I trust ever may be, of maintaining the most fiiend'y relations with each other, have unfortunately concluded a treaty which they un derstand ia senses directly opposite, the wisest course is to abrogate such a treaty by mutual con sent, and to commence anew. Had this been done promptly, all difficulties in Central America would most probably, ere this, have been adjusted to the satisfaction of both parties. The time spent in dis cussing the meaning of the Clayton and Bulwer treaty would have been devoted to this praisewor thy purpose, and the task would have been the mure easily accomplished because the interest of the two countiies in Central America is identical, being confined to securing safe transits over all the routes across the Isthmus. While entertaining these sentiments, I shall nevertheless not refuse to contribute to any reason able adjustment of the Central American questions which is not practically inconsistent with the Ameri can interpretation of the treaty. Overtures for this purpose have been recently made by the British Government In a friendly spirit, which I cordially reciprocate: but whether this renewed effort will result in success, I am not yet prepared to express an opinion. A brief period will determine. With France our ancient relations of friendship still continue to exist. The French government have in several recent instances, which need not be enumarated, evinced a spirit of good will and kind ness towards our country which I heartily recipro cate. It is, notwithstanding, much to be regretted that two nations whose productions are of such a character as to invite the most extensive exchanges and freest commercial intercourse should continue to enforce aucient and obsolete restrictions of trade against each other. Our commercial treaty with France is in this respect an exception from our treaties with all other commercial nations. It jeal ously levies discriminating duties both on tonn lge and on articles, the growth, produce, or manufac ture of the one country, when arriving in vessels belonging to the other. More than forty years ago, on the 3d of March 1815, Congress passed an act offering to all nations to admit their vessels laden with their national pro ductions into the ports of the United States upon the same terms with our own vessels, provided they would reciprocate to us similar advantages. This act confined the reciprocity to the productions of the respective foreign nations who might enter into their proposed arrangement with the United States. The act of May 24, 182S, remuved this testriction, und offered a similar reciprocity to all such vessels without reference to the origin of their cargoes. Upon these principles our commercial treaties and arrangements have been founded, except with France; and let us hope, that this exception may uot long exist. Our relations with Russia remain as they have ever been on the most friendly footing. The present Emperor, as well as his predecessors, have never failed, when the occasion offered, to mani fest their good will to our country; and their friend ship has always been highly appreciated by the Government and people of the United Siates. With all other European Governments, except Spain, our relations are as peaceful as we could de sire. I regret to say that no progress whatever has been made, since the adjournment of Congress, to wards the settlement of any of the numerous claiui3 of our citizens against the Spanish Government. Besides the outrage committed on our flag by the Spanish war-frigate Frenola on the high seas, off the coast of Cuba, in March, 1855, by tiring into the American mail steamer El Dorado, and detaining and searching her, remains unacknowledged and un redressed. The general tone and temper of the Spanish government towards that of the United States are much to be regretted. Our present en voy extraordinary and minister Plenipotentiary to Madrid has asked to be recalled; and it is my pur pose to send out a new minister to Spain, with spe cial instructions on all questions pending between the two governments, and with a determination 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 no tice of the Spanish government, he is met with the objection that Congress has never made the appro priation recommended by President Polk in his annual message of December, 1847, "to be paid to the Spanish government for the purpose of distrib ution among the claimants in the Armistad case." A similar recommendation was made by his imme diate predecessor in bis message of December, 1853, and entirely concurring with l oth in the opinion that this indemnity is justly due under the treaty with Spain on the 27th of October, 1795,1 earnestly recommend an appropriation to the favor able consideration of Congress. A treaty of friendship and commerce was conclu ded at Constantinople on the lath December, 1856, between the United Slates and Persia, the ratifica tions of which were exchanged at Constantinople on the 16th of June, 1857, aud the treaty was pro claimed bv the President on the 18th of August, 1857. This treaty, it is believed, will prove bene ficial to American commerce. The Shah has man ifested an earnest disposition to cultivate friendly relations with our country, and has expressed a strong wish that we should be represented at Tehe ran by a Minister Plenipotentiary, and I recommend that an appropriation be made for this purpose. Recent occurrences in China have been unfavor able to a revision of the treaty with that Empire, of the 3d of July, 1844, with a view to the security and extension of our commerce. The 24th article of this treaty stipulated for a revision of it, in case experience should prove this to be requisite; -'in which case the two governments will, at the expira tion of twelve years from date of said convention, treat amicably concerning the same, by means of suitable persons appointed to conduct such negoti ations." These twelve years expired on the 3d of July, 1856; but long before that period it was ascertained that important changes in the treaty were necessa ry; and several fruitless attempts were made by the commissioner of the United States to effect these changes. Another effort was about to be made for the same purpose by our commissioner, in conjunction with the ministers of England and France, but that was suspended by the occurrence of hostilities in the Canton river between Great Britain and the Chinese Empire. These hostilities have necessarily interrupted the trade of all nations with Canton, which is now in a state of blockade, and have occasioned a serious loss of life and property. Meanwhile the insurrection within the empire against the existing Imperial dy nasty still continues, and it is difficult to anticipate what will be the result. Under these circumstances, I have deemed it ad visable to appoint a distinguished citizen of Penn sylvania Envoy Extraordinary and Minister Plenipo tentiary to proceed to China, and to avail himself of any opportunities which may offer, to effect changes in the existing treaty favorable to the American com merce. He left the United States for the place of his destination in July last, in the war steamer, Min n -sola. Special Ministers to China, have also been appointed by the governments of Great Britain and France. Whilst our Minister has been instructed to occupy a neutral position in reference to the existing hos tilities at Canton, he will cordially co-operate with the British and Frenchministers in all peaceful mea sures to secure by treaty stipulations those just con cessions to commerce which the nations of the world have a right to expect, and which China can not long expect to be permitted to withhold. From assurances received, I entertain no doubt tiat the three ministers will act in harmonious con cert to obtain similar commercial treaties for each of the powers they represent. We cannot fail to feel a deep iuterest in all that concerns the welfare of the independent republics on our own continent, as well as of the empire of Bra zil. Our diffiulties with New Grenada, which a short time since bore so threatening an aspect, are it is to be hoped, in a lair train of settlement in a man ner just and honorable to both parties. The Isthmus of Central America, including that of Panama, is the great highway between the At lantic and Pacific, over which a large portion of the commerce of the world is destined to pass. The United States are more deeply interested than any other nation in preserving the freedom 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 country or by wars between the Independent States of Central America. Under our treaty with New Grenada of the 12th of December, 1 846, we are bound to guaranty the neutrality of the Isthmus of Panama, through which the Panama railroad passes, "as well as the rights of sovereignty and property which New Gre nada has and possesses over the said territory." This obligation is founded upon equivalents granted by the treaty to the government and people of the of the United States. Under these circumstances, I recommend to Con gress the passage of an act authorizing the Presi dent, in case of necessity, to employ the land and naval forces of the United States to carry into effect this guarantee of neutrality and protection. I also recommend similar legislation for the security of any other route across the isthmus in which we may acquire an interest by treaty. With the independent republics on this conti nent it is both our duty and our interest to culti vate the most friendly relations. We can never feel indifferent to their fate, and must always rejoice in their prosperity. Unfortunately, both for them and for us, our example and advice have lost much of their influence in consequence of the lawless expe ditions which have been fitted out against some of them within the limits of our country. Nothing is better calculated to retard our steady material pro gress, or impair our character as a nation, than the toleration of such enterprises, in violation of the law of nations. It is one of the first and highest duties of any in dependent State, in its relations with the members of the great family of nations, to restrain its people from acts of hostile aggression against their citizens or subjects. The moat eminent writers on public law do not hesitate to denounce such hostile acts as robbery and murder. Weak and feeble States, Mike those of Central America, may not feel themselves able to assert and vindicate their rights. The case would be far dif ferent if expeditious were set on foot within our own territories to make private war against a pow erful nation. If such expeditions were fitted out fjom abroad against any portion of our own coun try, to burn down cities, murder and plunder our people, and usurp our government, we should call any power on earth to the strictest account for not preventing such eormities. Ever since the administration of Gen. Washing ton, acts of Congress have been in force to punish severely the crime of setting on foot a military ex pedition within the limits of the United States, to proceed from thence against a nation or State with whom we are at peace. The present neutrality act of April 26, 1818, is but little more than a collec tion of pre-existing laws. Uuder this act the Pres ident is empowered to employ the land and naval forces and the militia "for the purpose ot prevent ing the carrying on of any such expedition or enter prise from the territories and jurisdiction of the United States," and the collectors of customs are authorized and required to detain any ves-el in pert when there is reason to believe that she is about to take part in such lawless enterprises. When it was first rendered probable that an at tempt would be made to get up another unlawful ex pedition against Nicaragua, the Secretary of State issued instructions to the marshals and district at torneys, which were directed by the Secretaries of War and the Navy to the appropriate army and navy officers, requiring them to be vigilant, and to use the best exertions in carrying into effect the provisions of 1818. Notwithstanding these precau tions, the expedition has escaped from our shores. Such enterprises can do no possible good to the country, but have already inflicted much injury both 011 its interests and its character. They have pre vented peaceable emigration from the United States to the States of Central America, which could not fail to be highly beneficial to all the parties con cerned. In a pecuniary point of view alone, our citizens have sustained heavy losses from the seizure and closing of the transit route by the San J uan be tween the two oceans. The leader of the recent expedition was arrested at New Orleans, but was discharged on giving bail for his appearance in the insufficient sum ot $2000. I commend the whole subject to the serious at tentien of Congress, believing that our duty and our interest, as well as our national character, re quire that we should adopt such measures as will lie effectual in preventing our citizens from commit ting such outrages. I regret to inform you that the Presideut of Par aguay has refused to ratify the treaty between the United States and that state as amended by the Sen ate, the signature of which was mentioned in the message of my predecessor to Congress at the ope tiingof its session in Dei ember, 1853. The reason assigned for this refusal will be found in the corres pondence herewith submit'ed. It being desirable to ascertain the fitness of the river La Plnta and its tributaries for navigation by steam, the United States steamer Water Witch was sent thither for that purpose in 1853. The enter prise was successfully carried on until February, when, while in the peaceful prosecution of her voy age up the Parana river, the steamer was fired upon by a Paraguayan fort. The fire was returned, but as the Water Witch was of small force, and not de signed lor offensive operations, she retired from the conflict. The pretext upon which the attack was made was a decree of the President of Paraguay of October 1854, prohibiting foreign vessels of war trom navigating the rivers of that State. As Para guay, however, was the owner ot but one bank of the river of that name, the other belonging to Cor rientes, a State of the Argentine Confederation, the right of its government to expect that such a decree would be obeyed cannot be acknowledged. But the Water Witch was not, properly speaking, a vessel of war. She was a small steamer engaged in a scieutific enterprise intended for the advantage of commercial States generally. Under these cir cumstances, I am constrained to consider the attack upon her as ur justifiable, and as calling for Satisfac tion from the Paraguayan Government. Citizens of the United States, also, who were es tablished in business in Paraguay, have had their property seized and taken trom them, aud have otherwise been treated by the authorities in an in sulting and arbitrary manner, which requires re dress. A demand for these purposes will be made in a firm but conciliatory spirit. This will the more probably be granted if the Executive shall have authority to use other means in the event of a re fusal. This is accordingly recommended. It is unnecessary to state in detail the alarming condition of the Territory of Kansas at the time of my inauguration. The opposing parties then stood in hostile array against each other, and any accident might have relighted the flames of civil war. Be sides at this critical moment, Kansas was left with out a governer by the resignation of Governor Geary. On the 19th ot February previous, the territorial legislature had passed a law providing for the elec tion of delegates on the 3d Monday of September, for the purpose of framing a constitution prepara tory to admission into the Union. This law was in the main fair and just, and it is to be regretted that all the qualified electors had not registered them selves aud voted under its provisions. At the time for the election of delegates an ex tensive organization existed in the Territory whose avowed object it was, if need be, to put down the awful government by force, and to establi-h a gov ernment of their own under the so-called Topeka Constitution. The persons attached to this revolu tionary organization abstained from taking any part iu the election. The act of the territorial legislature had omitted to provide for submitting to the people the consti tution which might be framed by the convention; and in the excited state of public feeling through out Kansas an apprehension extensively prevailed that a design existed to force upon them a constitu tion in relation to slavery against their will. In this emergency it became my duty, as it was my un questionable right, having in view the union of all good citizens in support of the territorial laws, to express an opinion on the true construction of the provisions concerning slavery contained in the or ganic act of Congress of the 30th May, 1854. Con gress declared it to be "the true intent and mean ing of this act not to legislate slavery into any Ter ritory or State, nor to exclude it therefrom, but to leave the people thereof perfectly free to form and regulate their domestic institutions in their own way." Under it, Kansas, "when admitted as a State," was to "be received into the Union, with or without slavery, as their constituents 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 finally 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? On this subject I confess I had never entertained a serious doubt, and, there force, in my instructions to Gov. Walker of tha 28th March last, I merely said that when "a constitution shall be submitted to the people of the Territory, they must be protected in the exercise of their right of voting for or against that instrument, and the fair expression of the popular will must not be interrupt ed by fraud or violence'" In expressing this opinion it was far from mv in tention to interfere with the decision of the people of Kansas, either for or against slaverv. From this I have always carefully abstained. Intrusted with the duty of taking "care that the laws be faithfully executed," my only desire was tnat the people of Kansas should furnish to Congress the evidence re quired by the organic act, whether for or against slavery; and in this manner smooth their passage into the Union. In emerging from the condition of territorial dependence into that of a sovereign State, it was their duty, in my opinion, to make known their will by the votes of the majoritv, on the direct question whether this important domestic institution should or should not continue to exist. Indeed, this was the only possible mode in which their will could be authentically ascertained. The election of delegates to a convention must neces-arily take place in separate districts. From this cause it may readily happen, as has often been the case, that a majority of the people of a State or Territory are on one side of a question, whilst a majority of the representatives from the several 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 email majori ties, whilst in others those of different sentiments I may receive majorities sufficiently great, not only to overcome the votes given ior the former, but to leave a large majority of the whole people in direct opposition to a majority of the delegates. 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 constitu ents. The truth is, that no other authentic and sat isfactory mode exists of ascertaining the will of a majority of the peoyle of any State or Territory on an important and exciting question like that of slavejy in Kansas, 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 pow er under our institutions! How vain would any 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 abolishing slavery, against the sentiment of the people, this could have no further effect than to continue and to exasperate the exciting agitation during the brief period required to make the constitution conform to the irresistible will of the majority. The friends and supporters of the Nebraska and Kansas act, when struggling on a recent occasion to sustain its wise provisions before the great tribunal of the American people, never differed about its true meaning on this subject. Everywhere through out the Unioti they publicly pledged their faith and their honor, that they would cheerfully submit the question of slavery to the decision ot the bona fide people of Kansas, without any restriction or qualifi cation whatever. All were cordially united upon the great doctrine of popular sovereignty, which is the vital principle of our free institutions. Had it then been insinuated from any quarter than it would be a sufficient compliance with the requisitions for the organic law for the members of a convention, thereafter to be elected, to withhold the question of slavery from the people, and to substitute their own will for that ofa legally ascertained majority of their constituents, this would have been instantly rejected. Everywhere they remained true to the resolution adopted on a celebrated occasion recog nizing -'the right of the people ot all the Territo ries including Kansas and Nebraska acting through the legally and fairly-expressed will of a major ity of actual residents, and whenever the num ber of their inhabitants justifies it, to form a consti tution, with or without slavery, and be admitted into the Union upon terms cf perfect equality with the other States." The convention to frame a Constitution for Kan sas met on the first Monday of September last. They were called together by virtue of an act of the Territorial Legislature, whose lawful existence has been recognized by Congress in different forms and by different enactments. A large proportion of the citizens of Kansas did not think proper to regUter their names, and to vote at the election for dele gates; but an opportunity to do this having been fairly afforded their refusal to avail thence v. 8 of their right could in no manner affect the legality of the convention. This convention proceeded to frame a cinstilu tion for Kansas, and finally adjourned on the 7th day of November. But little difficulty occurred in the convention, except on the subject of slavery. The truth is that the general provisions of our re cent State constitutions are so similar and, 1 may add, so excellent that the difference between them is not essential. Under the earlier practice of the Government, no constitution framed by the conven tion of a Territory preparatory to its admission into the Union as a State had been submitted to the peo ple. I trust, however, the example set by the last Congress, requiring that the Constitution ot Min- j nesota, "should be subject to the approval and rati- I ficatiou of the people of the proposed State," may I be followed on future occasions. I took it for grant ed that the convention of Kansas would act in ac cordance with the example, tounded as it is, on cor rect principes, and hence my instruc ions to Gov. Walker, in favor of submitting the constitution to the pecple, were expressed in general aud unquali fied terms. In the Kansas-Nebraska act, however, this require- . ment, as applicable to the whole constitution, had ; not been inserted, and the convention were not bound by its terms to submit any other portion of ' the instrument to an election, except that which re- j lataa trx ill. 'I.,inf7 inatilnlinti1' nFalav.p TKta IfV .111. U.JltlL.11.11 iiumuwuu va tr. j. ...0 will be rendered clear by a simple reference to its language. It was "not to legislate slavery into any Territory or State, nor to exclude it therefrom, but to leave the people thereof perfectly free to form and regulate their domestic institutions in their own way." According to the plain construc tion of the sentence, the words "domestic institu tions" have a direct, as they have an appropriate reference to slavery. "Domestic institutions" are limited to the family. The relation between master aud slave and a few others are "domestic institu tions," and are entirely distinct from institutions of apolitical character. Besides, there was no ques tion then before Congress, nor indeed has there since been any serious 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 a majority of only two, to submit the question of slavery to the people, though at the last, forty-three of the fifty delegates present affixed their signiiures to the constitution. A majority of the convention were in favor of es tablishing slavery in Kansas. They accordingly in serted an article in the Constitution for this purpose Mmilar in form to those which had been adopted by other territorial conventions. In the schedule, however, providing for the transition from a territo rial to a state government, the question has been fairly and explicitly referred to the people, whether they will have a constitution "with or without sla very." It declares that before the constitution a dopted by the convention "shall be sent to Congress for admission as a slate," an election shall be held to decide this question, at which all the white male in habitants 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 without slavery.' " If there be a majority iu favor of the constitution with slavery, then it is to be transmit ted to Congress by the President of the Convention in its original form. If, on the contrary, there shall be a majority in favor of the "constitution with no slavery," "then the article providing for slavery shall be stricken from the constitution by the President of this Convention," and it is expressly declared that "no slavery shall exist in the state of Kansas, ex cept thas the right of property in slaves uow in the Territory shall in no manner be interfered with;" and in that event it is made his duty to have the constitution thusratified transmitted to the Congress ot the United States for the admission of the state into the Union. At this election every citizen will have an oppor tunity of expressing his opinion by his vote "whether Kansas shall be received iu the Union with or with out slavery," and thus this exciting question may be peacefully settled in the very mode required by the organic law. The election will be held under legitimate authority, and if any portion of the in habitants shail refuse to vote, a fair opportunity to do so having been presented, this will be their own voluntary act, and they alone will be responsible for the consequences. Whether Kansas shall be a free or a slave State must eventually, under some authority, be decided by an election; and the question can never be more clearly or distinctly presented to the people than it is at the present moment. Should this opportunity be rejected, she may be involved for years in do mestic discord, and possibly in civil war before she can again make up the issue now so fortunately ten dered, and again reach the point she has already attained. Kansas has for some years occupied too much of the public attention. It is high time this should be directed to far more important objects. When once admitted iuto the Union, whether with or without slavery, the excitement beyond her own limits will speedily pass away, and she will then, for the first time, be left, as siie ought to have bieti long since, to manage her own affairs in her own way. If the Constitution on the subject, be displeasing to a majority of the people, no human power can pre vent tbein from changing it within a brief period. Under these circumstances, it may well be ques tioned whether the peace and quiet of the whole country are not of greater importance than the mere temporary triumph of either of the political parties in Kansas. Should the constitution without slavery be adop ted by the votes of the majority, the rights of pro perty in slaves now in the Territory are reseived. The number of these are very small; but if it wer. greater the provision would be equally just and rea sonable. These slaves were brought into the Terri tory under the Constitution of the United States, an are now the property of their masters. This point has at length been finally decided b the highest judicial trbunal of the country an. this upon the plain principal that when a confedt racy ol Sovereign States acquire a new Territory a their joint expense, both equally and justlv deniaii. that the citizens of one and all of them shall hav the right to take into it whatsoever is recognized a properto by the common constitution. To hav summarily confiscated the property in slaves alread in the territoty, would have been an oct of gro injustice, and contrary to the practice of the oldi States of the Union which have abolished slavery. - Aa A territorial government was established for Uuh by act of Congress approved the 9th September 1850, and the Constitution and laws ot the United States were thereby extended over it "so far as the same, or any provisions thereof, may be applicable." This act provided for the appointment by the Pre sident, by and with the advice and consent of the Senate, of governor, who vi to be ex-officio su oerietendent of Indian Affairs, Secretary, three Judges of the Supreme Court, Mai shall and Dis trict Attorney. Subsequent acts provided for the appointment of the officers necessary to extend out land and our Indian system over the territory. Brio-ham Young was appointed the first governor on the 20th September, 1S50, and has held the of fice ever since. Whilst Governor Young has been both governor and superintendent of Indiau affairs, throughout this period, he has been at the same time the head ot the church called tbe Latter-Day Saints, and professes to govern its members and dis pose of their property by direct inspiration and au thority from the Almighty. His power has been, absolute over both church and State. The people of Utah, almost exclusively belong to this church, and believing wnu a uiui thm h. u OAvernor of the Territory by Divine ap nnintim-nt Vier obev his commands as if these were diroet revelations from Heaven. 'If, therefore, he ct ooses his government shall come into collision with the Government oi me u mieu ouiies, me meiu bers of the Mormon church will yield implicit obedi ence to lii.4 will. Unfortunatelv. existing facts leave but little doubt that aucb" is his determination. Without en tering upon a minute history ot occurrences, it is sufficient . sv that al the officers of the tinted States, iudirial and executive, with the single ex ception of two Indian agents, have found it nec- cessary Tor their own peisonai saieiy to witnaraw from theTerritory. and there no longer remains any government in Utah but the despotism of Brigbam Young. This being the conditon of affairs in the Terruorv, I could not misiaKe tne pain oi uuty. As Chief Fxecut ve Magistrate I was bound to r.-store the supremacy of the Constitution and laws within its limits. In order to effect this purpose I appointed anew Governor and other federal officers for Utah, and sent with them a military force for their protection, aud to aid as a posse coniitatus in case ot need iu the execution of the laws. With the religious opinions of the Mormons, as long as they remained mere opinions, however de plorable in "themselves and revolting to the moral and religious sentiment of all Christendom, I had no right to interfere. Actions alone, when in violation of the constitution and laws of the United States. become the ligitimate subjects for the jurisdiction of the civd magistrates. My instructions to Governor Cumming have therefore been framed in strict ac cordance with these principles. At their date hope was indulged that no neceissity might exist for employing the military in restoning and main taining the authority of tbe law; but this hope has now vanished. Governor loung has by procla matiod, declared his determination to maintain his power by force, and has already committed acts of liostily against the United States. Unless he should retrace his steps the Territory of Utah will be in a state of open rebvl ion. He has committed these acts of hostility noiwithsianding Major Van Vlict, an officer of the army, sent to Utah by the com manding general to purchase provisions for troops, had given him the strongest assurances of the peace ful intentions of the government, ond that troops would only be employed as a posse comitatus when cal'ed on by the civil authority to aid in tbe execu tion ot the laws. There is 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 acknowledge his divine miiou and implicitly obey his will, aud that an enlightened public opinion there would soon prostrate institu tions at war with the laws both of God and man. He haa, therefore, for several years, in order to maintain his independence, been industriously em ployed in collecting and fabricating arms and muni tions of war, and iu disciplining tie Mormons for mi itary service. As Superintendent of Indian Af fairs he has had an opportunity of tampering with the Indian tribes, and exciting their hostile feelings sgainst the United States. This, according to our information, he has accomplished in regard to some of these tribes, while others have remained true to their allegiance, and have communicated his in trigues to our Indian Agents. He has laid in a store of provi-ions for three years, which, in case of necessity, as he informed Major Van Vliet, he will conceal, "and then take to the mountains, and bid dtfitnee to all 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 phrenzied fanaticism as exists among the Mormons in Utah. This is the first rebellion which has existed in our Territories; and humanity itself requires that we should put it down in such a maener that it shall be the last. To ti itle with it, would be to encourage it, and to render it formidable. We ought to go there with such an imposing force as to convince these de'uded people that resistance would be vain; and thus spare blood. We can in this manner con vince them that we are their fiiends, not their ene mies, la order to accomplish this object it will be necessary according to the estimate ot the War De partment, to raise ibur additional regiments; and this I earnestly recommend to Congress. At the present moment of depression in the revenues oi tbe coun try I am sorry to be obliged to recommend such a measure, but I feel confident of the support of Con gress, cost what it may, in suppressing the insur rection and in restoring and maintaining the sover eignty of tbe constitution and laws over the Terri tory of Utah. I recommend to Congress the establishment of a territorial government over Arizonia, incorporating with it such portions of New Mexico as they may deem expedient. I need scarcely adduce argu ments in support of this recommendation. We are bound to protect the lives and property of our citi zens inhabiting Aiizonia, and these are now without sufficient protection. Their number is already con siderable, and is rapidly increasing, notwithstanding the disadvantages under which they labor. Be sides, tbe proposed territory is believed to be rich in mineral and agricultural resources, especially in silver and copper. The mails of the United States to California are now carried over it through its whole extent, and this route is known to be the nearest, and believed to be the best to the Pacific Itong experience has deeply convinced me that a strict construction of the powers granted to Con gress is the only true as well as the onlysafe, the ory of the constitution. Whilst this principle shad guide my public conduct, I consider it clear that under the war making power Congress majr ap priate money for the construction of a military road through the Territory of the United States, when this is absolutely necessary for the defence of any of the States against foreign invasion. The consti tution has conferred upon Congress power to "de clare war," "to raise and support armes;" "to pro vide and maintain a navy," aud to call forth the mi litia to "repel invasions." These high foreign pow ers necessarily involve important and responsible public duues, and among them there is none so sacred and so imperative as that of preserving our soil from tbe invasion of a foreign enemy. The constitution has therefore, left nothing on this point to construction, but .expressly requires that "the United States shall protect each of them (the States) against invasion." Now, if a military road over our own Territories he ir.dispenaibly necessary to enable us to meet and repel the in vader, it lollowt as a necessary consequence not only that we possess jhe power, but it is our imperative duti to constrct such a road. Ic would be an absurdity to invest a government with unlimited power to make and conduct war, and at the same time done to it only tbe means of reaching and de feating tbe enemy at the frontier. Without such a road it is quite evident we cannot "protect" Cali fornia and our Pacific possessions "against invasion.' We cannot by any other means transport men and munitions of war from the Atlantic States in sufficient time successfully to defend those remote and distant portions of the Republic Experience has proved that the routes across the isthmus of Central America are at best but a very uncertain and unreliable mode of communica tion. But even if this were not the case, they would at once be closed against us in the event of a war with a naval power so much stronger than our own as to be able to blockade thepoitsat either end of these routes. After all, therefore, we can only rely upon a military through our own territo ries; and ever since the origin of the government. Congress has been in the practice of appropriating money from the public treasury for the construction of such roads. The difficulties and the expense of constructing a mili tary railroad to couneet our Atlantic and Facitic Elates, have been greatly exaggerated. The distance oo the Ar xona route near the 3id pa allel of No.tti latitude, between the western boundary or Texas on the Kio Grande and the eastern boundary of California on the Colorado, from the best explorations now within our knowledge, does not ex ceed iour hundred and seventy miles, and the face of the the country is, in the main, favorable, for obious reason the government ought not to undertake th- work itself by means of i own agents. This ought to be committed to other agencies, which Conttress might assist either by grants of land or money; or bolh upon such terms and conditions as they may deem most beneficial for the country. Provision might thus be made not only for the safe, rapid, and economical trans portation of troops and munitions of war, but also of the .ul.lic mails. The commercial interests of tbe whole coun try, both Eaaand West, would be srrcatly promoted by such a road; aodbove all, it woula be a powerful additional bond of union And, although advantages ot this kind, whether posUl, commercial, or political. cannot confer constitutional power, yet they may furoiac : auxiliary argu nients in favor of expediting a work which, tn my judg ment, j, 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, with out finally committing myself to any particular rte The report of the Secretary of the Treasury will furnish detailed statement of the condition of the public finan ces and of the respective branches of the public service de volved upon that department of the government. By mis rt-port it annears that the amount of revenue received from a!l sourcesinto the Trea.ury during the fiscal year ending the 80th of June, 1S59, was sixty-eight millions n? drcd and thirtv-one thousand Ave hundred and thirteen douaA and'sevencenni, (,63,681.518,67,) which am onnt witl. .i.-hlance of nineteen million and nine hun dred u thousand three "hundred and twenty -five area and .ne !n" cnls. (1S.9.'125M .) remaining in dollars and foriy-? Jnt t the Vear. made an the treasury at. ne."-, ,he yemr of eigi.tyight mil aggregate for the arv twothouMnd r.gM huodred lion nve nunon- -- d twelTe cen. lss,03S.r-3,. and birty-nine 40IUUW jon of CongreM to the re- I would caU the tSL.imry of the Navy in favor of the commendation or oflirht draught- Forsome constuction o'" "t hubeen obliged on man ten . ohliired on man v occasions years the governmen diyidll,u to ,uppi, iu pressing to hire such steamers ". , we haTe no armed ves- wants. At ibt l""V-- penetrate the rivers or enma. sel in the navy n"i, inter any of the harbors south We have but few minions of foreign and domestic of Norfolk, altboJdoSt of the barton. Borne commerce annually p f onr most valuable tauM. , vulnerable Mab r 'Peed, andheavv draw. defence. Thi bTJ.' rwiUWe inTSS and they will rTOUIr, lT, . r""00 win not be rreat. U. keep them i?Zmt?"tl'nil "PeSSi ""ve as effective u mnT T peace they wist -:... "ne or them should w. . ' a ore soars maintain a so. -adron artd S,. , T tUo where we n our Atl2ucp"S'''beeon. efficiency combine to recowfJ: coooms7. utility, aa able. TeatheUauTewerr2- advmntagetothe nT.rlrrvTv meaiculafcu construction would not eeeedTlil n' whoie 0, thouad doiu, iiXIe J. h Tne report of tbe fw.JT- . . grave can,,dcrUon. It !'f t'erior i. wortiy and diversified br "ocn "eron,, imp. trusted to hi. by I... A.onHSf tJf n"," -are the public Undi and o reii,. ?h"t,p"'Ie Our system for the diSDosaW T 'he lni' ating with the father, of thtLw!,,bl,J U"d " experience poinTrTt v iT' Pv5 he growth and settle uvfnT of oar Territories It aa worked ctern States aod thirteen St..- '7 rd Woll in practice. II .. of th. land,, and., 'J' acres remain unsold hi.-. j - - uraouui presents to onr - . . - a boundless Oiioa We have hemotodriAr?7. Power! prosper thai Public land. " V,6 acres ef the .ear endin, SOU, dt.ent,.twolno0iellJi?0f drW tan and ght, n t-enty-to. million nine hundred and r-jX2di. b6)- of which five dred and a ne-rtx dolUrl l,,"?ho,'d "Kht " l)wereaWuedtoA!2 "ety-one cent., (51, including urert aS emptiou of the public SeS; treasury theSLll. prenl,um eav.ng in the the Tst JolV 7e.?muDen"t of tbe present year. o Un thousand l,rT?'t'm nim,m aevVunired'aS Drlr2ipf into " m7 for the first quarter of tb. even hundred and fifty thouaaid dol fjXi"" king with the balance before stated aT.T-t'l The arm.) .-V: '" e" ,Mi e-penditnre during the Am quarter ,rth. ?n r?Je'r.Were '""XT"'"'' mmiorTt vTn hut! and fourteen thousand five hundred and t... present fiscal dred and fourteen Ih... "'"'i''" "' - eight dollar, and thirty Kvea Vent. r.?""2-,w;"'l ..eu.,.ars ana thirty seven cents f23 7! sat ifi arri JLStiWg.? -""V-mm- million, nie h YlZf n fiscal year was twenty-nine million sixty tbow! "oof do!- and",'; ta&n i ,w?,oU irty-cen. w.'; ? balance nmedeemed at this Umeir twenty-five miU.o- one hundred and sixty five f noTl Si? nd fift'-fo"" t,Ceecenu! H,T,' o'Mtimated expenditures fcrjthe remaining ,nen "' 1 nKut bxal T' will. nFprXf oJ X "" f lne forth in the Veport tiZ' Hureon,Xerelore, thatLthoriT ty should be given to supply any temporary deficiency, the issue of a limited amount of treasury note.. ,V ed, and I accordingly rommtnd "7p oVZl March .POrt-f 0,0 Sec"'"?, the term of of Ume '.iL' en m ODerlion tor so .hurt a period ot lime, and under circumstances so unfavorable to a in development ol iu result, as a revenue measure, thaTl. should regard it as an inupaUcnt, at least for tbe present, to undertake us revision. F s" I transmit herewith the reports made to me by the Pecre tane, of War and of the Navy, f ,he Interior .nd ofVbe r-ostmaster-Geae al. They ail contain valuable and im portant information and suggrstions which I commend the favorable consideration of Congress. I have already recommended the raising of four adU tionl regiments and the report of the Becretary of War presents strong reasons proving this increase of the army under the existing circumstances, to be indispensable Whilst the public lands as a source of revenue are of freat importance, their importance is u gre.t-r as fur nishing homes for a hardy and independent race of honest and ludastnous eitixens, who desire to subdue and culii vate the soil. They ought to be admiuutered mainly wish a view of promoting thv wise and becevolent policy. Ia appropriating them for any other purpose we ought to use even greater economy than if they had been concerted ' into money and the proceeds were already in the publio treasury. To squander away this richest and noblest in heritance which anypeople have ever erjoyed nptn objects or doubtful constituUonality or expediency, would be tm violate one of the most important trusts ever committed to any peo-4e. Whilst I do not deny im Congress the pow er, when acting bona fide as a pioprietor, to giveaway portions of them for the purpose f increasing the vaioe of the remainder, yet considering tbe great temptatoa to' abuse this power, we cannot be too cautious in iu exercise. Actual settlers under existing laws are protected against other purchasers at tbe public sales, in then- rirtat of pre emption, to the extent of a quarter section, or 161 acres o laid. The remainder may then be disposed of at publie or entered at private sale in unlimited quantities. Speculation ha. of late years prevailed to a. great extent in the public lands. The consequence has been that large portions of them have become the property ol individuals sad companies, and thus the price is greatly enhanced le those who wish to puichase for actual settlement. In or der to limit tbe area of speculation as much as possible, ts extinction of the Indian title and tl.e extension of tha public surveys ought only to kern Dace with the tide of emigration. ir Conbress hereafter should grant alternate sections I States or componies, as they have done heretofore, I recom mend that the intermediate sections retained by the gov ernment should be subject to pre-emption by actual set tlers. It ought ever to be our cardinal policy to reserve the publie lands as much as may Ik for actual settlers, aad this at moderate prices. We shall thus not only best promote the prosperity of the new States and Territories, and tbe power of the Union, but shall secure homes for our poster ity for many generations. The extension of eur limits has brought within our Ju risdiction many additional and populous tribes of Indians, a lareer proportion of which are wild, untractable. and diflicull to control. Predatory and warlike in their dispo sition and habits, it is impossible altogether to restrain . . tnem from committing aggressions on each other, as well -as upon our frontier citizens and those emirratinff to onr distant States and Territories. Hence, expensive military expeditions are frequently necessary to overawe and chas tise tne more lawless and hostile. The present system of making; them valuable presents to influence them to remain at peace, has proved ineffectu al. It is believed to be the better policy to colonise them in suitable localities, where they can receive the rudiments of education and be gradually induced to adopt habiu of industry. Se far as experiment has been tried it has work ed well in practice, and will doubtless prove to be less ex pensive thsn the present system. The whole number of Indisns within our territorial lim its is beliere-1 to he. from the best data in the Interior de partment, about 3-25,(1). The tribes of Cherokees, Ch fx-taws, Chickasawr, and Creeks, settled in the territory set apart for them west of Arkansas, are rapidly advancing in education and in all the arts ot civilisation and self-government; and we may indulire the aereeable anticipation that at no very distant day they wi:i be incorporated into the Union ssoiie of th sovereign States. It will be seen from the report of the Postmaster General thvt the tost-liffice Department still eontinnes to depend on the Treasury, as it ha. been compelled to do so for sev eral years past, for an important portion of the means ot sustaining and extending iu operations. Their rapid growth and expansion are shown by a decennial statement of the number of post offices, and the length or post roads, commencing- with the year 27. In that year there were 70"0 post-offices ; in 1MJ7, 11,177, in 1S47. 1S.H6; and in 1S57, tbey number 26,fc6. In this year 1724 post-offices have been established and 704 discontinued, leaving a net inere-se of 1 144. The postmasters of 863 oflice. are ap pointed by the President. The length of post reads in IS T wes 105,?S6 miles; ia 1S37 141,242 miles; in 187, 1 58,81 ti miles; and in the' year 1S57 there are 142,601 miles of pest road, including' it 89 miles of railroad, on which the mails are transported. The expenditures of the department for the fiscal year ending on the & in of June, 1S57, as adjufted by the Audi tor, amounted to ll,50i,&i0. To defray theseexpendi tures tt ere was to the crtd of the departmnet, on the 1st July, 1SS6, the sum of 7s9,5S9, the gross revenue of the year, including tbe annual allowances for the transporta tion of free mail matter, produced (S 153,851; and the re mainder was tupplied by the appropriation from the treas ury of f s.SMI.OUO granted by the act ot Congress approved August 18, 185, and by the appropriation of 666,668 made by the act or March 8, lo57, leaving S25X.763 to be carried to the credit of the department in the aecounu of the cur rent year. I commend to your consideration the Jeport of the department in relation to the eatabUsement of the overland mail route from the Missitsippi river to Ban Franeisea, ealtfontis. The rwaee was seleetedwih my full concurrence as the one in my judgment best calculated to attain the important objects contemplated by Congreas. The late disasti ous monetary revul lion may have one good effect should itcause both the government and the leople to return to the practice of a wise and judicious economy both in public and private expenditures. An overflowing treasury ha. led to habiu of prodigality and extravagance in eur legislation. It has inducec Con r res. to make large appropriation to objecu for which they never would have provided had it been necessary U raise the amount ef revenue required tq, meet them by in creased taxation or by loans. We are now comp-Ued I pause in onr career, and to scrnuuise our expenditures with the utmost vigilsnce; and in performing this duty, 1 pledge my co-operation to th extent of my constitutional competency. It ought to be observed at the same time that true publie economy does not consist in withholding the means neces sary to accomplish important natio-al obj..cts intrusted to as by the constitution and especially uch as may be neces sary for the commonjdefenee. In tbe present crisis of the country it is our duty to confine our appropriations to ob ject, of this character, unless in cases where justice to u div.duals may demand a different course. In ail eases care ought to be taken that the mocey granted by Con eress shall be faithfully and economically applied. Under the Federal Constitution, "every biU which shall have passed the House of Representative, and the Senate shall before it becomes a law," be approved and signed by the President; and, if not approved, '-he shall teturn rt with his objections to that house in which it originated. Ia order toperlorm this high and responsible duty, sufficient time mus; be aUowed the President to read and examine every biU presented to him for approval. Unless this be afforded, the Constitution becomes a dead letter lo this particular; and even worse, it becomes a means of decep tion. Our constituents.! seeing the President's approval and signature attached to each act of Congress, are induced to believe that be baa actually performed this duty, when In truth, nothing is, in many ca-es, mora unfounded. From the practice of Congress, such au exammabonof each bill as the constitution requires has been tendered impossible. The most imrKirtant busineM of each session U generally err wded in its last hours, and the altemauve presented to the President is either to violate the constitu tional duty which he owes to the people, and approve bills which for want of time, it is impossible he should have ex amined, or. by his refusal to do this, subject the eountiy and individuals to great loss and inconvenience. Besides, a practice has grown up of late years to legis late in appropriation bilU, at the last hours of the session, on new and important subjects. This practice constrains the President either to suffer measures to become laws which he does not approve, or to incur the risk of stopping the wheels of the rovernmeot by voting an appropriausa bill. Former y, such bills were confined to specific appro priation, for carrying into effect existing laws and tie well-established policy or the country, and Intle was tnea required by the President for their examination, . For my own part, I have eMUMvaaety determined the 1 shall approve no but which 1 nave not examined, and will be a case of extreme and most urgent necessity which shall ever induce me to depart from tbja rule. I therefor respectfully but earnestly recommend that the two swas eswill allow the President at least two days previous to the adjournment of each session within which no bill shall be presented to him for approval. Under the existing joint rule one day is allowed ; but this rule has been hith erto so constantly suspended in practice that important bUls continue to be presented to aim up till the very Isst momenU of the session. . In a large majority of eases no great public inconven ience can arise from the want of time to examine thor pro visions because the constitution has declared that if a bin be presented -o the President within t) e last tea days of the session he is not required to return it either with an ap proval or with a veto," in which ease it shall not be aiaw. It may then lie over and be taken up and Fussed ' next session Ore at inconvenience would only be part en ced in regard to appropriation bills; but tortnly, un der the late excellent law allowing a 1TT. . h L per diem to the members of Congress, the expense and ia convenience or a called session wiU be ratlj rroced I cannot conclude without commending to your firora ble consideration the interests of this district WJon5 representative on the floor of Congress .they have for thw very reason peculiar claims upon our jnt regard. To Uus I know, from my long acquaintance with them, tbey -vr eminently entitled. JAMES BUCHANAN. Washington, Dee. 8, 1857, 'V.