The Sun. — London, England, 1858-12-20 00:00:00

ratification of treaties and of executive appoint ments. All this has worked admirably in. practice, whilst it conforms in principle with the character of a government instituted by sovereign states. I presume no American citizen would desire the slightest change in the arrangement. Still is it not unjust and unequal to the existing states to invest some 40,000 or 50,000 people collected in a territory with the attributes of sovereignty, and place them on an equal footing with Virginia and New. p York-in the Senate of the United States . " For these reasons I earnestly recommend the passage of a general act which shall provide that, upon the application of a territorial legislature, de claring their belief that the territory contains a number of , :inhabitants which, if in a state, would entitle them them to elect a member of Congress,it shall be the, duty of the President to cause a census of the inhabitants to be taken, and if found suffi- - cient, then by the terms of this act to authorise them to proceed in their own way' to frame a state constitution preparatory to admission into the Union. I also recommend that an appropriation may be made to enable the President to take a census of the people of Kansas. UTAH AFFAIRS. "The present condition of the territory of Utah, when contrasted with what it was one year ago, is a subject for congratulation. It was then in a state of open rebellion, and, cost 'what it might, the character of- the Government required that this re bellion should be suppressed and the Mormons com pelled to yield obedience to the constitution and the laws. In order to accomplish this object, as I informed you in my last annual message, I ap pointed a new governor instead of Brigham Young, and other federal officers to take the place of those who, consulting their personal safety, had found it necessary to withdraw from the territory. To protect these civil officers, and to aid them, as a. posse comitatus, in the execution of the laws in case o.f need, I ordered a detachment of the army to ac company them to Utah. The 'necessity for adopt ing these measures is now demonstrated. " On the 15th September, 1857, Governor Young issued his proclamation, in the style of an indepen dent sovereign, announcing his purpose to resist by force of'arms the entry of the United States troops into our own territory of Utah. By this he re quired all the forces in the territory to ' hold them selves in readiness to march at a moment's notice to repel any and all such invasion,' and established martial law from its date throughout the territory. These proved to be no idle threats. Forts Bridger and Supply were vacated and burnt down by the Mormons to deprive our troops of a shelter after their long and fatiguing march. Orders were is sued by Daniel H. Wells, styling himself Lieut.- General Nauvoo Legion,' to stampede the animals of the United States troops on their march, to set fire to their trains, to burn the grass and the whole country before them and on their flanks, to keep them from sleeping by night surprises, and to blockade the road by felling trees and destroying the fords of the rivers, &c. " These orders were promptly and effectually obeyed. On the 4th October, 1857, the Mormons captured and burned on Green River three of our supply trains, consisting of 75 waggons loaded with provisions and tents for the army, and drove away several hundred animals. This diminished the supply of provisions so materially that General Johnston was obliged to reduce the rations • and even with this precaution there was only su fficient left to subsist the troops until the Ist of June. " Our little army behaved admirably in their encampment at Fort Bridger under these trying privations. In the midst of the mountains, in a dreary, unsettled, and inhospitable region, more than a thousand miles from home, they passed the severe and inclement winter without a murmur. They looked forward with confidence for relief from their country in due season, and in this they were not disappointed. " The Secretary of War employed all his ener gies to forward them the necessary supplies, and to muster and send such a military force to Utah as would render resistance on the part of the Mormons hopeless, and thus terminate the war without the effusion of blood. In his efforts he was efficiently sustained by Congress. They granted appropria tions sufficient to cover the deficiency thus neces sarily created, and also provided for raising two regiments of volunteers, 'for the purpose of quelling disturbances in the territory of Utah, for the pro tection Of supply and emigrant trains, and the suppression of Indian hostilities on the frontiers.' Happily there was no occasion to call these regiments into service. If there had been I should have felt serious embarrassment in selecting them, so great was the number of our brave and patriotic citizens anxious to serve their country in this dis tant and .apparently dangerous expedition. Thus it has been, and thus may it ever be ! " The :whole wisdom and economy of sending sufficient reinforcements to Utah are established not only by the event, but in the opinion of those who, from their position and opportunities, are the most capable of forming a, eorrect judgment. General Johnstone, the commander of the forces, in address ing the Secretary of War from Fort Bridger, under date Oct. 18, 1857. expresses the opinion that un less a large force is sent here, from the nature of the country, a protracted war on their (the Mor mons') part is inevitable.' This he considers neces sary to terminate the war ' speedily and more eco nomically than if attempted by insufficient means.' " In the meantime it was my anxious desire that the Mormons should yield obedience to the consti tution and the law:7, without rendering it necessary to resort to military force. To aid in accomplishing thiS object, I deemed it advisable, in April last, to despatch two distinguished citizens of the United States, Messrs Powell and M'Colloch, to Utah. They bore with them a proclamation addressed by myself to the inhabitants of Utah, dated the 6th of that month, warning them of their true condition, and how hopeless it was on their part to persist in re bellion against the United States, and offering all those who should submit to the laws a full pardon for their past seditions and treasons. At the same time I assured those who should persist in rebellion against the United States, that they must expect no further lenity, but look to be rigorously dealt with according to their deserts. The instructions to these agents, as well as a copy of the proclamation, and their reports, are herewith submitted. It will be seen by their report of July 3d last, that they have fully confirmed the opinion expressed by General Johnston in the previous October, as to the neces sity of sending reinforcements to Utah. In this they state that they ' are firmly impressed with the be lief that the presence of the army here and the large additional force that had been ordered to this terri toty, were the chief inducements that caused the Mormons to abandon the idea of resisting the autho rity of the United States. A less decisive policy would probably have resulted in a long, bloody, and expensive war. ' " These gentlemen conducted themselves to my entire satisfaction, and rendered useful services in executing the humane intentions of government. " It also affords me great satisfaction to state, that Governor Cumming has performed his duty in an able and conciliatory manner, and with the happiest effect. I cannot, in this connection, refrain from mentioning the valuable services of Colonel Thomas L. Kane, who, from motives of pure benevolence, and with out any offi cial character or pecuniary compensation, visited Utah during the last inclement winter, for the pur pose of contributing to the pacification of the ter ritory. " I am happy to inform you, that the governor and other civil officers of Utah are now performing their appropriate functions without resistance. The authority of the constitution and the laws has been fully restored, and peace prevails throughout the territory. " A portion of the troops sent to Utah are now encamped in Cedari_Valley, 44 miles south-west of Salt Lake City ; and the remainder have been ordered to Oregon to suppress Indian hostilities. " The march of the army to Salt Lake City, through the Indian territory, has had a powerful fleet in restraining the hostile feelings ag ainst the United S tates wh i ch ex i sted among th e Indians in that region and in securing emigrants to the W est est ag ainst their depredations. This will also be the means of establishing military posts and promoting settlements along the route. " I recommend that the benefit of our land laws and pre-empti on system be extended to the people s of Utah, by the establis hment of a l an d o ffi ce in that territory. " I liave occasion, also, to congratu late you on the result of our negotiations with China . OUR CHINESE TItEATY. " You were informed by my last annual mes sage that our Minister had been instruct e d to occupy neutral position in the hostilities conducted by a Great Britain and France against Canton. H e was , however, at the same time directed to co-operate cordially with the British and French Ministers in all peaceful measures, to secure by treaty those just concessions to foreign commerce which the nations of the world had a right to demand. It is impos sible for meto proceed further than this on my own authority with usurping the war-making power which, under the constitution, belongs exclusively to Congress. " Besides, after s careful examination of the nature and extent of our grievances, I did not be lieve they were of such a pressing and aggravated chdracter as would have justified Congress in de. daring war against the Chinese empire without first making another earnest attempt to adjust them by peaceful negotiation. I was the more inclined to this opinion because of the severe chas-. tisement which had then but recently been -inflcted upon the Chinese by our squadron, in the capture and destruction of the Barrier Forts, to avenge an alleged insult to our flag. " The event has proved the wisdom• of our neu trality. Our Minister has executed his instructions with eminent skill and ability-. In conjunction with the Russian plenipotentiary, he has peacefully, but effectually, co-operated with the English and French plenipotentiaries ; and each of the four powers has concluded a separate treaty with China of a highly satisfactory character. The treaty toncluded by our own plenipotentiary will immediately be sub mitted to the Senate. JAPAN. "I am happy to announce that, through the energetic yet conciliatory efforts of our consul general in Japan, a new treaty has been concluded with that empire, which may be expected mate rially to augment our trade and intercourse in that quarter, and remove from our countrymen the disa bilitieh which have heretofore been imposed upon the exercise of their religion. The treaty shall be submitted to the Senate for approval without delay. OUR RELATIONS WITH GREAT BRITAIN. "It is my earnest desire that every misunder standing with the Government of Great Britain should be amicably and speedily adjusted. It has been the misfortune of both countries, almost ever since the - period of the Revolution, to have been annoyed by a succession of irritating and dangerous questions, threatening their friendly relations. This has partially prevented the full development of those feelings of mutual friendship between the people of the two countries, so natural in them 3elves, and so conducive to their common interest. Any serious interruption of the commerce between the United States and Great Britain would be equally injurious to both. In fact, no two nations have ever existed on the face of the earth which could do each other so much good or so much harm. " Entertaining these sentiments, I am gratified to inform you that the long-pending controversy between the two Governments, in relation to the question of visitation and search, has been amicably adjusted. The claim on the part of Great Britain, forcibly to visit American vessels on the high seas in time of peace, could not be sustained under the law of nations, and it had been overruled by her own most eminent jurists. This question was re cently brought to an issue by the repeated acts of British cruisers in boarding and searching our merchant vessels in the Gulf of Mexico and the adjacent seas. These acts were the more injurious and annoying as these waters are - traversed by a large portion of the commerce and navigation of the United States, and their free and unrestricted use is essential to the security of the coastwise trade between different states of the Union. ' Such vexa tious interruptions could not fail to excite the feel ings of the country, and to require the interposition of the Government. Remonstrances were addressed to the British Government against these violations of our rights of sovereignty, and a naval force was at the same time ordered to the Cuban waters, with directions 'to protect all vessels of. the United States on the high seas from search or detention by the vessels of war of any other nation.' These mea sures received the unqualified and enthusiastic ap probation of the American people. Most fortunately no collision took place, and the British Government promptly avowed its recognition of the principles of international law upon this subject, as laid down by the Government of the United States in the note of the Secretary of State to the British Minister at Washington, of April 10, 1858, which secure the vessels of the United States upon the high seas from visitation or search in time of peace, under any cir cumstances whatever. The claim has been aban doned in a manner reflecting honour on the British Government, and evincing a just regard for the law of nations, and cannot fail to strengthen the ami cable relations between the two countries. " The British Government, at the same time, proposed to the United States that some mode should be adopted, by mutual arrangement between the two countries, of a character which may be found effective without being offensive, for verify. ing the nationality of vessels suspected on good grounds of carrying false colours. They have also invited the United States to take the initiative, and propose measures for this purpose. Whilst declin ing to assume so grave a responsibility, the Secre tary of State has informed the British Government that we are ready to receive any proposals which they may feel disposed to offer, having thi s o bj ec t in view, and to consider them in an amicable spirit. A strong opinion is, however, expressed, that the occasional abuse of th&fiag of any nation is an evil far less to be deprecatra than would be the esta blishment of any regulations which might be in compatible with the freedom of the seas. This government has yet received no communication spe cifying the manner in which the British Government would propose to carry out their suggestion ; and I am inclined to believe that no plan which can be de vised will be free from grave embarrassments. Still I shall form no decided opinion on the subject until I shall have carefully and in the best spirit exa mined any proposals which they may think proper to make. " I am truly sorry that I cannot also inform you that the complications between Great Britain and the United States, arising out of the Clayt on an d Bulwer Treaty of April, 1850, having been finally adjusted. " At the commencement of your last session, I had reason to hope that, emancipationg themselves from further unavailing discussions, the two go vernments would proceed to settle the Central Ame rican question in a practical manner, alike honour able and satisfactory to both ; and this hope I have not yet abandoned. In my last annual message I stated that overtures had been made by the British government for this purpose, in a friendly spirit, which I cordially reciprocated. Their proposal was to withdraw these questions frrm direct negotiation between the two governments ; but to accomplish the same object by a negotiation between the Bri tish government and each of the Central American aepublics whose territorial interests are immediately involved. The settlement was to be in accordance with the general tenor of the interpretation placed upon the - Clayton and Bulwer treaty by the United States, with certain modifications. As negotiations are still pending upon this basis, it would not be proper for me now to communicate their present condition. A final settlement of these questions is greatly to be desired, as this would wipe out the last remaining subject of dispute between the two countries. " Our relations with the great empires of France and Russia., as.well as with all other governments on the continent of Europe, except that of Spain, continue to be of the most friendly character. OUR RELATIONS WITH SPAIN. " With Spain our relations remain in an unsatis factory condition. In my message of December last I informed you that our envoy extraordinary and minister plenipotentiary to Madrid-had asked for his recall; and it was my purpose to send out a new.minister to that court, with special instructions on:all questions pending between the two govern ments, and with a determination to have them speedily and amicably adjusted, if that were pos sible. This purpose has been hitherto defeated by causes which I need not enumerate. " The mission to Spain has been intrusted to a distinguished citizen of Kentucky, who will pro ceed to Madrid without delay, and make another and a final attempt to obtain justice from that go vernment. " Spanish officials, under the direct control of the Captain-General of Cuba, have insulted our national flag, and in repeated instances have from time to time inflicted injuries on the persons and property of our citizens. These have given birth to numerous claims against the Spanish Government, the merits of which have been ably discussed for a series of years, by our successive diplomatic repre sentatives. Notwithstanding this we have not ar rived at a practical result in any single instance, unless we may except the case of the Black Warrior, under the late administration; and that presented an outrage of such a character as would have justi fied an immediate resort to war. All our attempts to obtain redress have been baffled and defeated. The frequent and oft-recurring changes in the Spanish ministry have been. employed as reasons 1 for delay. We have been compelled to wait, again and again, until the new minister shall have had time to investigate the justice of our demands. " Even what haVe been denominated 'the Cuban claims,' in which more than a hundred of our citi zens are directly interested, have furnished no ex ception. These claims were for the refunding of duties unjustly exacted from American vessels, at different custom-houses in Cuba, so long ago as the year 1844. The principles upon which they rest are so manifestly equitable and just, that after a - period of nearly ten years, in 1854, they were recognised by the Spanish government. Proceedings were afterwards instituted to ascertain their amount, and this was finally fixed, according to their own state ment (with which we are satisfied), at the sum of 128,635 dols. Mc. Just at the moment, after a de lay of 14 years, when we had reason to expect that this sum would be repaid with interest, we have received a proposal offering to refund one-third of The that a mount (42,878 dols. 41e.), but without inte rest,oifffewreiswaloosuld accept thi s i n f u ll sat i s f act i on accompanied by a decla ra ti on th a t . T this indemnifi cat i on is not founded on any reason of strict justic e , b ut i s made as a special fal-our. " One alleged can; e for procrastination n . the examination and adjustment of our claims arises ' from an obstacle which it is the duty of the Sp anish government to remove. Whil s t t h e Captain G eneral of Cuba is invested with general despotic authority in the government of that island, the power is with held from him to examine and redress wrongs com mitted by officials under his control on citizens of the United States. Instead _of making our corn. plaints directly to him at H avanna h we are obliged to present them through our minister at M a d r id. These are referred back to the captain general for information, and much time is thus consumed in preliminary investigations and correspondence be t Ween Madrid and Cuba before the Spanish govern ment will consent to proceed to negociation. Many of the difficulties between the two governments would be obviated, and a long train of negociation avoided if the captain general were invested with authority to settle questions of easy solution on the spot, where all the facts are fresh, and could be promptly and satisfactorily ascertained, We have hitherto in vain urged upon the Spanish government to confer this power upon the captain general, and our minist er t o Sp a i n will again be in structed to urge this subject on their notice. In this respect we occupy a different position from the powers of Europe. Cuba is almost within sight of our shores ; our commerce with it is far greater than that of any other nation, including Spain itself, and our citizens are in habits of daily and extended personal intercourse with every part of the island. It is therefore, a great grievance that, when any difficulty occurs, no matter how unimportant, which might be readily settled at the moment, we should be obliged to resort to Madrid, especially when the very first step to be taken therein to refer it back to Cuba. " The truth is that Cuba, in its existing colonial condition, is a constant source of injury and annoy ance to the American people. It is the only spot in the civilised world where the African slave trade is tolerated ; and we are bound by treaty with Great Britain to maintain a naval force en the coast of Africa, at much expense both of life and trea sure, solely for the purpose of arresting slavers bound to that island.. The late serious difficulties between the United States and Great Britain re specting the right of search, now so happily termi nated, could never have arisen if Cuba had not afforded a market for slaves. As long as this mar ket shall remain open there can be no hope for the civilisation of benighted Africa. Whilst the de mand :for slaves continues in Cuba wars will be waged among the petty and barbarous chiefs in Africa for the purpose of seizing subjects to supply this trade. In such a condition of affairs it is im possible that the light of civilisation and religion can ever penetrate these dark abodes. " It has been made known to the world by my predecessors that the United States have on seve ral occasions endeavoured to acquire Culla from Spain by honourable negotiation. If this were ac complished the last relic of the African slave trade would instantly disappear. We would not, if we could, acquire Cuba in any other manner. This is due to our national character. All the territory which we have acquired since the origin of the go vernment has been by fair purchase, from France, Spain, and Mexico, or by the free and voluntary act of the independent state of Texas, in blending her destinies with our own. This course we shall ever pursue, unless ccircumstances should occur, which we do not now anticipate, rendering a de parture from it clearly justifiable, under the im perative and overruling law of self-preservation. "The island of Cuba, from its geographical posi tion, commands the mouth of the Mississippi, and its immense and annually increasing trade, foreign and coastwise, from the valley of that noble river, now embraces half the sovereign states of the Union. With that island under the dominion of a distant foreign power this trade, of vital importance to these states, is exposed to the danger of being de stroyed in time of war, and it has hitherto been subjected to perpetual injury and annoyance in time of peace. Our relations with Spain, which ought to be of the most friendly character, must always be placed in jeopardy, while the existing colonial go vernment over the island shall remain in its present condition. " Whilst the possession of the' island would be of vast importance to the United States, its value to Spain is, comparatively, unimportant. Such was the relative situation of the parties when the great Napoleon transferred Louisiana to the United States. Jealous, as he ever was, •of the national honour and interests of France, no person through out the world has imputed blame to him for accept ing a pecuniary equivalent for this cession. " The publicity which has been given - to our for mer negotiations upon this subject, and the large appropriation which may be required to effect the purpose, render it expedient, before making another attempt to renew the negotiation, that I should lay the whole subject before Congress. This is espe cially necessary, as it may become indispensable to success that I should be entrusted with the means of making an advance to the Spanish Government immediately after the signing of the treaty, with out awaiting the ratification of it by the Senate. 1 am encouraged to make this suggestion by the ex ample of Mr. Jefferson previous•to the purchase of Louisiana from France, and by that of Mr. Polk, in view of the acquisition of territory from Mexico. I refer the whole subject to Congress, and commend it to their careful consideration. " I repeat the recommendation made in my mm sage of December last in favour of an appropriation ' to be paid to the Spanish Government for the purpose of distribution among the claimants in the Amistad case. President Polk first made a similar recommendation in December, 1847, and it was re peated by my immediate predecessor, in December, 1853. I entertain no doubt that indemnity is fairly due to those claimants under our treaty with Spain of the 27th October, 1795 ; and whilst demandi ng justice we ought to do justice. An appropriation promptly made for this purpose could not fail to exert a favourable influence on our negotiations with Spain. -OUR RELATIONS WITH MEXICO. " Our position in relation to the independent states south of us on this continent, and especially those within the limits of North America, is of a peculiar character. The northern boundary of Mexieo is coincident with our own southern boundary from ocean to ocean ; and we must ne cessarily feel a deep interest in all that concerns the well-being of so near a neighbour. We have always cherished the kindeit wishes for the suc cess of that republic, and have indulged the hope that it might at last, after all its trials, enjoy peace and prosperity under a free and stable government. We have never hitherto interfered, directly or in directly, with its internal affairs, and it is a duty which we owe to ourselves to prOtect the integrity of its territory against the hostile interference of any other power. Our geographical position, our direct interest in all that concerns Mexico, and our well-settled policy in regard to the North American continent render this an indispensable duty. "Mexico has been in a state of constant revolu tion almost ever since it achieved its independence. One military leader after another has usurped the government in rapid succession, and the various constitutions from time to time adopted have been set at nought almost as soon as they were pro claimed. The successive governments have afforded no adequate protection, either to Mexican citizens or foreign residents against lawless violence. Here tofore a seizure of the capitaLby a military chieftain has been generally followed by at least the nominal submission of , the country to his rule for a brief period ; but not so at the present crisis of Mexican affairs. A civil war has been raging for some time throughthe republic, between the central government at the city of Mexico, which has en deavoured to subvert the constitution last framed by military power, and those who maintain the authority -of that constitution. The antagonist parties each holding possession of different states of the republic, and the fortunes of war are con stantly changing. Meanwhile the most reprehen sible means have been employed by both parties to extort money, from foreigners as well as natives, to carry on this ruinous contest. The truth is, that this fine country, blessed with a productive soil and a benign climate, has been reduced by civil dissen sion to a condition of almost hopeless anarchy and imbecility. It would be in vain for thii govern ment to attempt to enforce payment in money of the claims of American citizens, now amounting to more than ten million dollars, against Mexico, be cause she is destitute of all pecuniary means to satisfy these demands. " Our late minister was furnished with ample powers and questions instructions h w with the fo t r the ee n ra.governm entadjustment e all pending Mexico, and he performed his duty with zeal and ability. The claims of our citizens, some of them arising out of the violation of an express provision of the treaty of Guadaloupe Hidalgo, and others from gross injuries to persons as well as property, have remained unredressed, and even unnoticed. Remonstrances against these grievances have been addressed without effect to that Government. _ _ Meantime, in various parts of the republic, instances have been numerous of the murder imprisonment, and plunder of our citizens by different parties claiming and exercising a local jurisdiction; but the central government, although repeatedly urged thereto, have made no effort either to punish the authors of these outrages or to prevent their recur rence. a No American citizen can now visit Mexico on lawful business without imminent danger to his person and property. There is no adequate protee tion;to either; and in this respect our treaty with that republic is almost a dead letter. " This state of affairs was brought to a crisis sin May last, by the promulgation of a decree levying a contribution pro rota upon all the capital in the republic between certain specified amounts, whe ther held by Mexicans or foreigners. Mr. Forsyth, regarding this decree in the light of a forced loan, formally protested against its application to his countrymen, and advised them not to pay the contribution, but to suffer it to be forcibly exacted, Acting upon this advice an American citizet re fused to pay the contribution, and his property was seized by armed men to satisfy the - amount. Not content with that the government proceeded further, and issued a decree banishing him from the country. Our Minister immediately notified them that_ if this decree should be carried into execution he would feel it to be his duty to adopt' the most decided measures that belong to the powers and obligations of the representative office.' Not*ith standing this warning the banishment was en forced, and Mr. Forsyth promptly announced to the government the suspension of the political re lations of his legation with them until the pleasure of his own government should be ascertained. " This government did not regard the contribu tion imposed by the decree of May last to be in strictness a forced loan,' and as such prohibited by the 10th article of the treaty of 1826 between Great Britain and Mexico, to the benefits of which American citizens are entitled by treaty ; yet the imposition of the contribution upon foreigners was considered an unjust and oppressive measure. Be sides, internal factions in other parts of the republic were at the same time levying similar exactions uppn the property of our citizens and interrupting commerce. There had been an entire failure on the part of our minister to secure redress for the wrongs our citizens bad endured, notwith s t an di ng hi s per severing efforts. And from the temper manifested. the Mexican government he had repeatedly as sured us that no favourable change could be ex pected until the United States should give striking evidence of their will and power to protect their citizens,' and that 'severe chastening is the only earthly remedy for our grievances. From this statement of facts it would have been worse than idle to direct Mr. Forsyth to retrace his steps and resume diplomatic relations with that government; and it was, therefore, deemed p ro p er t o sanct i on hi s withdrawal of the legation from the city of. Mexico. " Abundant cause now undoubtedly exists for a resort to hostilities against the government still holding possession of the capital. Should they suc ceed in subduing the constitutional forces, all rea sonable hope will then have expired of a peaceful settlement of our difficulties. "On the other .hand, should the • constitutional party prevail, and their authority be established over the republie; there is reason to hope that they will be animated by a less , tudriendly spirit, and giant that redress to American citizens which jus tice requires, so far as they may possess the means. But for this expectation I should at once have re commended to : Congress to gkant the necessary power to the President to take possession of a suf ficient portion of the remote and unsettled territory. of Mexico, to be held in pledge until our injuries shall be rediessed and our just demands be satisfied: We have already exhausted every milder means of obtaining justice. In such a case this reme d y o f i reprisals s recegnised by•the law of nations, not only as just in itself,. but as a. means of pre.venting actual war. "But there is = another view of our relations with Mexico, arising fronr•the unhappy condition of affairs along our south-Western frontier, which de mands immediate - action. In that remote region, where there are but fe* white inhabitants, large bands of hostile and predatory Indians roam pro miscuously over the Mexican states of Chihuahua and Sonora and our adjoining territories. The local GOVernments of these States are .perfectly helpless, and are kept in a state of constant> alarm by the Indians. • They have not the power, if they ' possessed the will, even to restrain lawless Mexi cans from passing the' border and committing de predations on our remote settlers. A state of anar chy and. violence prevails throughout that distant frontier. The laws are a dead letter, and life and property are wholly insecure. For this reason the settlement of Arizona is arrested, whilst it'is of "great importance that a chain of inhabitants should extend all along 'its southern border sufficient for their own protection and that of the United 'States • . mail passing to and from California.. Well-founded apprehensions are now entertained that the Indians and wandering Mexicans, equally lawless, may break up the important stage and postal communi cation recently established between our Atlantic and Pacific possessions. This passes very near to the Mexican bOundary, throughout the whole length of Arizona. I can imagine no possible remedy for these evils, and no mode of restoring law and order on that' remote and unsettled frontier, but for the Government of the United States to assume a tem porary protectorate over the northern portions of Chihuahua and' Sonora, and to establish military posts within the same ; and this is earnestly recom mended by Congress. This protection may be with drawn as soon as local Governments shall-be estab lished in these Mexican States, capable of perform ing their duty to the U n it e d St a t es , restraining the lawless, and preserving peace along the border. "I do not doubt that this measure will be viewed in a friendly spirit by the Governments and people of Chihuahua and Sonora, as it will prove equally effectual for the protection of their citizens on that remote and lawless frontier as for citizens of the United States. ARIZONA. - - "And in this connection permit me to recall your attention to the condition of Arizona. The popu lation of that territory, numbering, as is alleged, more than 10,000 souls, are practically without a Government,'without laws, and without any regular administration of justice. M ur d er an d other crimes are committed with impunity. This state of things calls loudly for redress ; and I therefore repeat my recommendation for the establishment of a terri torial government over Arizona. ISTHMUS. AFFAIRS.—THE SEVERAL ROUTES . FOR TRANSIT ACROSS IT. " The political condition of the narrow isthmus of Cen tral Amenca through which transit routes pass, between the Atlantic and Pacific Oceans, presents a subject of deep interest to all commercial nations. It is over these transits that a large Proportion of the trade and travel between the European and Asiatic continents is destined - to pass. To the *United States these routes are of incalculable import ance, as a means of communication between their Atlantic and Pacific possessions. The latter now extend through out several degrees of latitude oit the Pacific coast, embracing the important state of California and the flourish ing territories of Oregon and Washington. All commercial nations, therefore, have a deep and direct interest that the communications shall be rendered secure from interruption. If an arm`ofithe sea connecting the t iro oceans penetrated through Nicaragua and Costa' Rica it could not be pre tended that these states would have the right to arrest or retard its navigation, to the 'injury of other nations. The transit by land over this narrow isthmus occupies nearly the same position. It is R highway in which they themselves have little interest, when compared with the vast interests of 'the test of the world. Whilst their rights of sovereignty ought to be respect e d, it is the duty of other nations - to*requpe that this important passage shall not be interrupted by the civil wars and revo lutionary outbreaks which have so frequently occurred in that region. The stake is too impo4ant to be left at thd mercy of rival companies, claiming to hold confli c ti ng con tracts with Nicaragua. The commel te o f other nations'is not to stand still and await, the adjustment of suc h pet t y controversies. The Government 0/ the. United States expect no more than this, and they will not be satisfied with less. They would not, if they could, derive any ad vantage from the Nicaragua transit, not common to the rest of the world. Its neutrality and proteetion, for the common use of all nations, is their only object. They have no objec tion that Nicaragua shall demand and receive a fair com pensation from the companies and individuals who may traverse the route; but they insist that it shall never here after be closed by an arbitrary decree of that Government. If disputes arise between it and those with whom they may have entered into contracts, these must be adjusted by some fair tribunal provided for the purpose, and the route must not be closed pending the controversy. This is our whole policy, and it cannot fail to be acc e pt a ble to all nations. "All these difficulties might be avoided if, consistently with the good faith of Nicaragu a , the use of this transit could be thrown open to general competition; providing at the same time for the payment of a reasonable rate to•the Nicaraguan Government on.passengcrs and freight. " In August, 1852, the Accessory Transit Company made its first interoceanic trip over the Nicaraguan route, and continued in successful operation, Neith great advantage to the public, until the 18th of February, 1856, when it was closed; and the grant to this company, as well as its charter; were summarily and arbitrarily revoked by the Goveminent of President Rivas. Previous to this date, however, in 1854, serious disputes concerning the settlement of their accounts had arisen between the company and the Govern ment, threatening the interruption of the route at any moment. These the United States inyain endeavoured-to compose. It would be useless-to aariate the various pro ceedings which took place between the parties up to the time when the transit was discontinued. Suffice it to say, that since February, 1856, it has remained closed, greatly to the prejudice of citizens of the United States. Since that time the competition has ceased between the rival routes of Panama and Nicaragua, and in consequence thereof an un just and unreasonable amount has been exacted from our citizens for their passage to and from California. " A treaty was signed on the 16th day of November, 1857, by the Secretary of State and Minister of Nicaragua, under the stipulations of which the use and protection of the transit route would have been secured, not only to the United States, but equally to all other nations. How and on what pretexts this treaty has failed to receive the ratifi cation of the Nicaraguan Government will appear by the papers herewith communicated from the state department. The principal objection seems to have been to the provision authorising the United States to employ force to keep the route open in case Nicaragua should fail to perform her duty in this respect. From the feebleness of that republic, its frequent changes of government, and its consequent in- ' ternal dissensions, this had become a most important stipu lation, and one essentially necessary, not only for the secu rity of the route, but for the safety of American citizens passing and repassing to and from our Pacific possessions Were such a stipulation embraced in a treaty between the United States and Nicaragua, the knowledge of this fact would of itself most probably prevent hostile parties from committing aggressions on the route, and render our actual interference for its protection unnecessary. " The executive government of this country, in its in tercourse with foreign nations, is limited to the employment of diplomacy alone. When this- fails it can proceed no further. It cannot legitimately resort to force, without the direct authority of Congress, except in resisting and repel ling hostile attacks. It would have no authority to enter the territories of Nicaragua, even to prevent the destruction of the transit, and protect the lives and property of our own citizens on their passage.. It is true that on a sudden emergency of this character the Piesident would direct any armed force in the vicinity to march to their relief, but in dein,- this ho would act upon his own responsibility. " Under these circumstances I earnestly recommend to Congress the passage of an act authorising the President, under such restrictions as they may deem proper, to em ploy the land and naval forces of the United .States in pre venting the transit from being obstructed or closed .by THE SUN, LONDON, MONDAY EVENING, DECEIVIBER 20, 185 g. - _ lawless violence, and in protecting the lives and property of Americari. citizens travelling thereupon, requiring at the sante time that these forces shall be withdrawn the moment the danger shall have passed away. Without such a provision our citizens will be constantly exposed to interruption in their progress and to lawless violence. " A similar necessity exists for the passage of such an act for the protection of the Panama and Tehuantepec routes. " In reference to the Panama route, the United States, by their existing treaty with New Grenada, expressly gua rantee the neutrality of the Isthmus, with the view that the free transit from the one to th e ther sea may not be interrupted or embarrassed in any future time while the treaty exists.' " In regard to the Tehuantepec route, which has been recently opened under the most favourable auspices, our treaty with Mexico of thepOth December, 1853, secures to the citizens of the United States a right of transit over it for their persons and merchandise, and stipulates that neither Government shall interpose any obstacle thereto. It also concedes to the United States the 'right to trans port across the Isthmus, iu closed bags, the mails of the United States not intended for distribution along the line of the communication ; also the effects of the United States Government and its citizens which may be intended for transit, and not for distribution on the Isthmus, free of Custom-house or other charges by the Mexican Govern ment.' " These treaty stipulations with New Grenada and Mexico, in addition to the considerations applicable to the Nicaragua route, seem to require legislation for the purpose of carrying them into effect. COSTA RICA AND NEW GRENADA. - - --- " The injuries which have been inflicted upon our citizens in Costa Rica and Nicaragua during the last two or three years have received tfie prompt attention of this, government. Some of these injuries were of the most aggravated charac ter- The transaction at Virgin Bay in April, 1856, when a company of unarmed Americans, who were in no way con nected with any belligerent conduct or party, were fired on by the troops of Costa Rica, and numbers of the m kill e d and wounded, was brought to the knowledge of Congress by my predecessor soon after its occurrence, and avas also pre sented to the government of Costa Rica for that immediate investigation andiredress which the nature of the case de manded. A similar course was pursued with reference to other outrages in these countries, some of which were hardly less aggravated in their character than the transaction at Virgin Bay. At the time, however, when our present minister to Nicaragua was appointed, in December, 1857, no redress had been obtained' for any of these wrongs, and no reply even had been received to the demands which had been made by this government upon that of Costa Rica more than a year before. Our minister was instructed, therefore, to lose no time in expressing to those governments the deep regret with which the President had witnessed this inattention to the just claims of the United States, and in demanding their prompt and satisfactory adjustment. Unless this demand shall be complied with at an early day it will only remain for this government to adopt such other measures as may be necessary, in order to obtain for itself that justice which it has in vain attempted to secure by peaceful means from the governments of Nicaragua and Costa Rica. While it has shown, and will continue to show the most sincere regard for the rights and honour of these republics it cannot permit this regard to be met by an utter neglect on their part of what is due to the government and citizens of the United States. " Against New Grenada :we have long-standing causes of complaint, arising out of the unsatisfied claims of our citizens upon that republic; and to these have been more recently added the outrages committed upon our citizens at Panama in April, 1856. A treaty for the adjustment of these difficulties Was concluded by the Secretary of State and the minister of New Grenada, in Sept., 1857, which contained just and acceptable provisions for that purpose. The treaty was transmitted to BOgota, and was ratified by the government of New. Granada, but with certain amend ments. It was alot, returned' to this city until after the close of the last session of the Senate. It will be immediately transmitted to that body for their advice and consent ; and should this be obtained it will remove all our existing causes of co plaint against New G r e na d a on th e subject of claims. 1. ",Questions have arisen hetween the two governments as' to the right of N ew a rena d a to l evy a tounage duty upon the vessels of the United States in its ports of the Isthmus, and to levy a passenger. tax 'upon our citizens arriving iti that country, whether with a design to remain there, or to pass from ocean to .ocean by the transit route, and also a' tax upon the mails of the United States transported over the Panama Railroad. The government of New Grenada has been informed that the United States would consider the collection of either of these taxes as an act of violation of the treaty between the two countries, and as such would be resisted by the United States. .At the same time, we are prepared to discuss these questions in a spirit of amity and justice, and with a sincere desire to adjust them in a satis factory manner. A negotiation for that purpose has already been commenced. No effort has recently been made to collect these taxes, nor is any anticipated under present circumstances. BRAZIL. "With the empire of Brazil our relations are of the most friendly character. The productions of the two countries, and especially those of an agricultural nature, are such as to invite extensive mutual changes. A large quantity of American flour is consumed in Brazil, while more than treble the amount in value of Brazilian coffee is consumed in the United States. While this is the case a heavy duty has been levied until very recently upon the importations of American flour into Brazil. lam gratified, however, to be able to inform you that in September last this has been reduced from 1 dol. 32 to about 49 cent per barrels, and the duties on other articles of our production have been diminished in nearly the same proportion. "I regret to state that the government of Brazil still con tinues to levy an export duty of about 11 per, cent. on coffee, notwithstanding this article is admitted free from duty in United States. This is a heavy charge upon-the con sumers of coffee in our country, as we purchase half of the entire surplus crop . of that article raised in Brazil. Our minister, under instructions, will reiterate his efforts to have this export duty removed; (and it is hoped that the enlightened Government of the Emperor will adopt this wise, just, and equal policy.` In that event there is good reason to believe that the commerce between the two coun tries will greatly increase, much to the advantage of both. " The claims of o ur citizens against the Government of Brazil are not, in the aggregate, of very large amount ; but some of these rest upon plain principles of justice, and their settlement ought not to be longer delayed. A renewed and earnest, and I trust a successful effort, will be made by our minister to procure their final adjustment. PARAGUAY. "On the 2d of June last Congress passed a joint resolu tion authorising the President 'to adopt such measures and use such force as, in his judgment, may be necessary and advisable" for the purpose of adjusting the differences be tween the United States and the Republic of Paraguay, in connection with the attack on the American steamer Water Witch, and with other - measures referred to' in his annual message.' And on the 12th of July following they made an appropriation to defray the expenses and compensation of a commissioner to that republic, should the President deem it proper to make such an appointment. " In compliance with these enactments I have appointed a commissioner, who has proceeded to Paraguay with full powers and instructions to settle these differences in an amicable and peaceful manner, if this be. practicable. His experience and discretion justify the hope that he may prove successful in convincing the Paraguayan Government that it is due both to honour and justice that they should volun tarily and promptly make atonement for the wrongs which they have committed against the United States, and indem nify our injured citizens whom they have forcibly despoiled of their - property. " Should our commissioner prove unsuccecsful, after a sincere-and- earn* effort to accomplish the object of his mission, then no alternative will remain but the employment of force to obtain just satisfaction' from Paraguay. In view fi this contingeney theitecretary of the navy, under my direction, has fitted out and despatched a naval force, to rendezvous near , Buenos Ayres, which, it is believed, will prove suffieiidfor the Occasion. It is my earnest desire, however, that it may.not be foitnd necessary to resort to this last alternative. DOMESTIC 'AFFAIRS.—BUSINESS OF THE . COUNTRY. " When ,Congress' met in December last the business of the country_ had just been crushed by one of those periodical revulsions which are the inevitable consequence of our un sound and extravagant system of bank credits and i n fl a t e d currericy; . With all, the elements of national wealth in abundance: our manufactures were suspended, our useful public and private enterprises were arrested, and thousands of labourers were deprived of employment and reduced to want. Universal distriss prevailed among the commercial, manufacturing, and mechanical classes. This revulsion was felt the more severely in, the United States, because simil ar causes had produced the lik e depl ora bl e effects throughout the commercial nations'of Europe. All were. experiencing sad reverses at the same moment. Our manufacturers every. where suffered severely, not because of the recent reduction in the tariff of duties on imports but because the re was no demand at any price for their productions. The people were obliged to restrict.themselves in their purchases to articles - of prime necessity. ' In the general prostration of business - the iron manufacturers in different states probably suffered more than any other class, and much destitution was the inevitable consequence among the great number of work men who had been employed in this useful branch of our industry. There could be no supply where there was no demand. Topresent an example, there could be no demand for railroad iron, after ear magnificent system of railroads, extending its be ne fit s t o every po r t i on of the Union, had been brought to a dead pause. The same consequences have resulted from similar causes to many other branehes of use ful manufactures. It is self-evident that where there is no ability to puichase manufactured- articles these cannot be• produced, and consequently must cease to -be produced, "No government, and especially a government of such limited power as that of the United States, could have pre vented the late revulsion. The whole commercial world seemed for yean to have been rushing to this catastrophe. The same ruinous consequences would have followed in the United States whether the duties upon foreign imports had remained as they were under the tariff of 1846 or had been raised to a much higher standard. The tariff of 18.57 had no agency in the result. The general causes existing throughout the world could not have been controlled by the legislation of any particular country. " The periodical revulsions which have existed in our past history must continue to return at intervals so long as our present unbounded system of bank credits shall prevail. They will, however, probably be the less severe in future ; because it is not to be expected, at least for many years to come, that the commercial nations of Europe, with whose interests our own are so materially involved, will expose themselves to similar calamities. But this subject was treated so much at large in my last annual message that I shall not now pursue it further. Still, I.respectfully renew the recommendation in favour of the -passage of a uniform bankrupt law applicable to banking institutions. This is all the direct power over the subject which I believe the federal government possesseS. Such a law would mitigate, though it might not prevent, the evil. The instinct of self-preser vation might produce a wholesome restraint upon their banking business, if they knew in advance that a suspen sion of specie payments would inevitably produce their civil death. " But the effects of the revulsion are now slowly but surely passing away. The energy and enterprise of our citizens, with our unbounded resources, will, within the period of another year, restore a state of wholesome indus try and trade. Capital has again accumulated in our large cities. The rates of interest are there very low. Confi dence is gradually - reviving, and so soon as it is discovered that this capital can be profitably employed in commercial and manufacturing enterprises, and in the construction of railroads and other works of public and private im provement, prosperity will again smile throughout the land. It is vain, however to disguise the fact from our selves, thut a speculative inflation in our currencx, without a corresponding inflation in other countries whose manu factures come into competition with our own, must ever produce disastrous results to our d omes ti c manufactures. No tariff short of absolute prohibition, can prevent these evil consequences. duced pecuniary distress throughout the country' hare so reduced the amount of imports from foreign.countries that the revenue has proved madecpiate to meet the necessary expenses of the government. To supply the deficiency, Congress by the act of Dec. 23, 1857, authorised the issue of 20,000,000 dols. of treasury notes, and, this proving in adequate, they authorised, by the act of June 14, 1858, a loan of 20,000,000 dols., to be applied to the payment of appropriations made by law.' " No statesman would advise that we should go on in creasing the national debt to meet the ordinary expenses of the government. This would be a most ruinous policy. In case of war, our credit must be our chief resource, at least for the first year, and this would be greatly impaired by having contracted a large debt in time of peace. It is our true policy to increase our revenue so as to equal our ex penditure It would be ruinous to continue to borrow. Be sides it may be proper to observe that the incidental pro tection thus afforded by a revenue tariff would at the pre sent moment to some extent increase the confidence of the manufacturing interests, and give a fresh impulse to our reviving business. To this, surely, no one will object. " In regaid to the mode of assessing and collecting duties under a strict revenue tariff I have long entertained, and often expressed the opinion that sound policy requires this should be done by specific duties in cases to which these can be properlyapplied. They are well adapted to commodities which are usually sold-by weight or measure, and which from their nature, are of equal or nearly equal value. Such, for example, are the articles of iron of different classes, raw sugar, and foreign wines and spirits. " In my deliberate judgment specific duties are the best if not the only means of securing the revenue against false and fraudulent invoices, and such has been the practice adopted by thi s purpose by other commercial nations. Be sides, specific duties would afford to the American manufac turer the incidental advantages to which he is fairly entitled under a revenue tariff. The present system is a sliding scale to his advantage. Under it, when prices are high and business prosperous, the duties rise in amount when he least requires their aid. On the contrary, when prices fall, and he is struggling against adversity, the duties are diminished in the same proportion, greatly to his injury. • " Neither would there be danger that a higher rate of duty than that intended by Congress could be levied in the form of specific duties. It would be easy to ascertain the average value of any imported article for a series of years ; and, instead of subjecting it to an ad valorem duty at a cer tain rate per centum, to substitute in its place an equivalent specific duty. By such an arrangement the consumer will not be in jured. It is true, he might have to pay a little more duty on a given article in one year; but if so he would pay a lit tle less in another, and in a series of years these would counterbalance each other, and amount to the same thing as far as ,his interest is concerned. This inconvenience would be trifling when contrasted with the additional secu rity thus afforded against frauds upon-the revenue, in which every consumer is directly interested. " I have thrown out these suggestions as the fruits of my own observation, to which Congress, in their better judgment, will give such weight as they may justly deserve. FINANCES.. . " The report of the Secretary of the Treasury will explain in detail the operations of that department of the govern ment. The receipts into the Treasury from all sources, during the fiscal year ending June 30, 1858, including the Treasury notes, authorised by the Act of Dec. 23, 1857, were dols 70,273,869 59, which amount, with the balance of dols. 17,710,114 27 remaining in the Treasury at the com mencement of the year, made an aggregate for the service of the year of dols. 87,983,983 86. "The public expenditure, during the fiscal year ending June 30, 1858, amounted to dols. 81,585,667 76, of which dols. 9,684,537 99 were applied to the payment of the pub lic,debt, and the redemptio n o f T reasury notes w i t h the interest thereon, leaving in the Treasury on July 1, 1858, being the commencement of the present fiscal year, dols. 6,398,316 10. " The receipts into the Treasury during the first quarter of the present fiscal year, commencing the let of -July, 1868, including one-half. of the loan of dole. 20;000;000, with the premium upon it, authorised by the act of 14th of June, 1858, were dole. 25,230,879 46, and the estimated re ceipts for the remaining three quarters to the 30th of June;- 1859, from ordinary sources, are d6ls. 38,500,000, making, with the balance before stated, an aggregate of dols. 70,129,104 56. "The expenditure during the first quarter of the present fiscal year, were dols. 21,708,198 51; of which dols. 1,010,142 37 were applied to the payment of the public debt and the redemption of Treasury notes and the interest thereon. The estimated expenditures, during the remain ing three quarters to 30th June, 1859, are dols. 52,357,698 48, making an aggregate of dole. 74,065,896 99, being an excess of expenditure; beyond the estimated receipts into the Trea sury from ordinary sources, during the fiscal year to the 30th Juue, 1859, of dole. 3,936,701 43. Extraordinary means are placed by law within the command of the Secre tary cf the Treasury, by the re-issue of Treasury notes re deemed, and by negociatmg the balance of the loan autho rised by the act of 14th June, 1868, to the extent of dols. 11,000,000, which if realised during the present fiscal year, will leave a balance in the Treasury, on the Ist day of July, 1859, of dols. 7,063,298 57. " The estimated receipts during the next fiscal-year end ing 20th June, 1840, are dole. 62,000,000 which, with the above estimated balance of dols. 7,063,29 57, make an ag gregate for the service of the next fiscal year, of dols. 69,063.298 57. The estimated expenditures during the next fiscal year, ending 30th June, 1860, are dols. 73,139,147 46, which leave a deficit of estimated means, compared with the estimated expenditures for that year, commencing on the Ist of July, 1859, of dols 4,075,848 89. " In addition to 'this sum, the Postmaster-General will require from the Treasury, for the service of the Post-office Department, 3,038,728 dols., as explained in thereport of the Secretary .of the Treasury, which will increase the esti mated deficit on the 30th June, 1860, to 7,014,676 dole. 89e. To provide for the payment •of this estimated defi ciency, which will be increased by such appropriations as may be made by Congress, not esti ma t e d in the report of the Treasury Department, as well as to *vide for the gra dual redemption, from year to year, of the outstanding Treasury notes, the Secretary of the Treasury recommends such a revision of the present tariff as will raise the required amount. After what I have already said, I need scarcely add that I concur in the opinion expressed in his report, that the public debt should not be increased by an additional loan ; and would therefore strongly urge upon Congress the duty of making, in their present session, the necessary provision for meeting these liabilities. - THE PUBLIC DEBT. " The public debt on the Ist July, 1858, the commence ment of the present fiscal year, was 25,155,977 dols. 67c. "During the first quarter of the present year the sum of 10,000,000 dols. has been negotiated of the loan authorised by the act of 14th June, 1858-making the present out standing public debt, exclusive of Treasury notes, 35,155,177 dols. 66c. There was on the Ist July, 1858, of Treasury notes issued by authority of the act of Dec. 23, 1857, unredeemed, the sum of 19,754,800 dole., making the amount of actual indebtedness, at that date, 54,910,777 dole. 66c. To this will be added 10,000,000 dols. during the pre sent fiscrl year, this being the remaining half of the loan of 29,000,000 dole. not yet negotiated. " The rapid increase of the public debt, and the necessity which exists for a modification of the tariff, to meet even the ordinary expenses .of the Government, ought to admo nish us all in our respective spheres of duty, to the practice of rigid economy. The objects •of expenditure should be limited in number, as far as this may be practicable, and the appropriations necessary to carry them into effect ought to be disbursed under the strictest accountability. Enlight ened economy does not consist in the refusal to appropriate money for constitutional purposes, essential to the defence, progress, and prosperity of the Republic, but in taking care that none of this money shill be wasted, by mismanage ment, in its application to the objects designed by law. " Comparisons between the annual expenditure at the present time, and what it was 10 or 20 years ago, are alto gether fallacious. The rapid increase of our country in ex tent and popillation renders a corresponding increase of ex penditure to some extent unavoidable. This is constantly creating new objects of expenditure, and augmenting the amount required for the old. The true questions, then, are -have these objects been unnecessarily multiplied ? or has the amount expended upon any or all of them been larger than comports with due economy ? In accordance withthese principles, the h ea d s o f the different executive depart ments of the Government have been instructed to reduce their estimates for the next fiscal year to the lowest stan dard consistent with the efficiency of the service, and this duty they have performed in a spirit of just economy. The estimates of the Treasury, War, Navy, and Interior De partments, have each been in some degree reduced; and unless a sudden and unforeseen emergency should arise, it is not anticipated that a deficiency will exist in either within the present or the next fiscal year. The Post-office Department is placed in a peculiar position, different from the other departments, and to this I shall hereafter refer. "I invite Congress to institute a rigid scrutiny to ascer tain whether the expenses in all departments cannot be still further reduced; and I _promise them all the aid in my power in pursuing the investigation. THE DEPARTMENTS. "I transmit herewith the reports made to me by the Se cretaries of War, of the Navy, of the Interior, and of the Postmaster-General. They each contain valuable infor mation and important recommendations, to which I invite the attention of Congress.- "In my last annual message I took occasion to recom mend the immediate construction of 10 small steamers, light draught, for the purpose of increasing the efficiency of the navy. Congress responded to the recommendation, by authorising the construction of Bof them. The progress which has Wen made in executing this authority is stated in the report of the Secretary of the Navy. I concur with him in opinion, that a greater number of . 'this • class of vessels is necessary_ for the purpose of protecting in a more efficient manner the persons and property of American citizens on the high sea s , an d i n foreign countries as well as in guard ing more effectually our own coast. I abcordingly recom mend the passage of an act for this purpose. ' • "The suggestions contained in the report of the Secre tary of the Interior, especially these in regard to the dispo sition of the public domain, the pension and bounty land system, the policy towards the Indians, and the amendment of our patent laws are 'worthy of the serious consideration of Congress. "The post-office department occupies a position very different from that of the other departments. For many years it was the policy of the Government to render this a self-sustaining department; and if this cannot now be ac complished in the present condition of the country we ought to make as near an approach to it as may be practicable. " The Postmaster-General is placed in a most embarrass ing position by the existing laws. Ho is obliged to carry these into effect. • He has no other alternative. He finds, however, that this cannot be done without heavy demands upon the Treasury over and above what is received for postage; and these have been progressively increasing from year to year, until they amounted, for the last fi sca l year ending June 30, 1858, to more than 4,500,000 dole.; whilst it is estimated that for the present fiscal year they will amount/to - 6,290,000 dols. These sums are exclusive of the annual appropriation of 700,000 dols. for compensation for the mail services performed for the two houses of Congress, and the other departments and officers of the Government in the transportation of free matter.' " The cause of these large deficits is mainly attributable to the increased expense of transporting the mails. In 1852 the sum paid for this service was but a fraction over four millions and a quarter. Since that year it has annually in creased, until- in 1858 it has reached more than eight mil lions and a quarter ; and for the service of 1859 it is esti mated that it will amount to more than ten millions of ;dollars The receipts of the post-office department can be made to approach or to equal its expenditure only by means of the legislation of Congress. Inapplying any remedy care should be taken that the people snail not be deprived of the advantages which they are fairly entitled to enjoy from the post-office department. The principal remedies realm mended to the consideration of 'Congress by the postmaster general, are to restore the former rate of postage upcn single setters to five cents.; to substitute for the franking privilege the delivery to those now entitled .to enjoy, it of post office stamps for their correspondence, and to-direct the depart ment in making contracts for the transportation of the mail to confine itself to the payment of - the sums necessary for 'tilt single purposp without requiring it to be transported in Post coaclies on carriages of any particular description THE TARIFF. In conneetiop. with this subject it is 14 0 .Per.to rgfer to 'OW financial coalition, Me same causes which have pro- Under the present system the expense to the government is greatly increased by requiring that the mall shall be carried in such vehicles as will accommodate passengers. This will be done without pay from the department over all roads where the travel will remunerate the contractors. " These recommendations deserve the grave considera tion of Congress. " I would again call your attention to the construction of a Pacific railroad. Time and reflection have but served to confirm me in the truth and justice of the observations which I made on this subject in my last annual message,to which I beg leave respectfully to refer. " It is freely admitted that it would be inexpedient for this government to exercise the power of constructing the Pacific railroad by its own immediate agents. Such a policy would increase the patronage of the executive to a danger ous extent, and introduce a system of jobbing and corrup tion which no vigilance on the part of Federal officials could either prevent or detect. This can only be done by the keen eye and active and careful supervision of individual and private interest. The construction of this road ought, therefore, to be committed to companies incorporated by the States, or other agencies whose pecuniary interests would be directly involved. Congress might then assist them in the work by grants of land or of money, or both, under such conditions and restrictions as would secure the trans portation of troops and munitions of was free from any charge, and that of the United States mail at a fair and reasonable price. " The progress of events since the commencement of your last session has shown how soon difficulties disappear before a firm and determined resolution At that time such a road was deemed by wise and patriotic men to be a vision ary project. The great distance to be overcome, and the intervening mountains and deserts in the way, were ob stacles which, in the opinion of many, could not be sur mounted. Now, after the lapse of but a single year, these obstacles, it has been discovered, are far less formidable than they were supposed to be ; and mail stages with pas senger, now pass and repass regularly twice in each week by a common waggon road, between San Francisco and St. Louis and Memphis in less than 25 days. The service has been as regularly performed as it was in former years be tween New York and this city. " Whilst disclaiming all authority to appropriate money for the construction of this road, except that derived from ile war-making power of the constitution, there arelm portant collateral considerations urging us to undertake the work as speedily as possible. " The first and most momentous of these is, that such a road would be a powerful bond of union between the States east and west of the Rocky Mountains. This is so self-evi dent as to require no illustration. " But, again, in a commercial point of view, I consider this the great question of the day. With the eastern front of our Republic stretching along the Atlantic, and its west ern front along the Pacific if all the parts should b e un ited by a safe, easy, and rapid communication we must neces eerily command a 'very large proporkion of the trade both of Europe and Asia. Our recent treaties with China and Japan will open these rich and populous empires to our commerce ; and the history of the world proves that the nation which has gained possession of the trade with East ern Asia has always become wealthy and powerful. The peculiar geographical position of California and our Pacific possessions invites American capital and enterprise into this fruitful field. To reap the rich harvest, however, it is an indespensable pre-requisite that we shall first have a railroad, to convey and circulate its products through out every portion of the Union. Besides such a rail road througout our temperate latitude, which would not be impeded by the frosts and snows of winter, nor by the tropical heats of summer, would attract to itself much .of the- travel and the trade of all nations passing between Europe and Asia. THE SLAVER ECHO. " On the 21st of August last, Lieutenant J, N. Maffit, of the United States brig Dolphin, captured the slaver Echo (formerly the Putnam, of New Orleans), near Kay Verde, on the coast of Cuba, with more than 300 African negroes on board. The prize, under the command o f Li eu t enan t Bradford, of the United StateS navy; arrived at Charleston on the 27th of August, when fhe-negroes, 306 in number,, were delivered into the custedyjof the United States mar shal for the district of South Carolina. Thay were first placed in Castle Pinckney, and afterwards in Fort Sumter, for safe keeping, and were detained there until the 19th of September, when the survivors, 171 in number, were deli vered on board the United States steamer Niagara, to be transported to the coast of Africa, under the charge of the agent of the United States, pursuant to the provisions of the act of the 3d of March, 1819, 'in addition to the acts prohibiting the slave trade.' Under the secomd section of this act the President is ' authorised to make such regula tions and arrangements as he may deem expedient, for the safe keeping, support, and removal beyond the limits of the United States, of all such negroes, mulattoes, or per sons of colour', captured by vessels of the United States, or may be delivered to the marshal of the district into which they are brought ; ' and to appoint a proper person or per sons residing upon the coast of Africa as agent or agents for receiving the negroes, mulattoes, or persons of colour, delivered from on board vessels seized in the prosecution of the slave trade by commanders of the United States armed vessels.' " A doubt immediately arose as to the true construction of this act. It is quite clear from its terms that the Presi dent was authorised to provide ' for the safe keeping, sup port, and removal' of these negroes • up till the time of their delivery to the agent on the coast of Africa; but no express provision was made for their protection and support, after they had reached the place of their destination. Still, an agent was to be appointed to receive them in Afriea ; and it could not have been supposed that Congress intended he should desert them at the moment they were received, and turn them loose on that inhospitable coast to perish for want of food, or to become again the victims of the slave trade. Had this been the intention of Congress the em ployment of an agent to receive them, who is required to reside on the coast, w as unnecessary, an d they might have been landed by our vessels anywhere in Africa, and left ex posed to the sufferings and the fate which would certainly await them. "Mr. Monroe, in his special message of the 17th of De cember, 1819, at the first session after the act passed, an nounced to Congress what, in his opinion, was its true con struction. He believed it to be his duty under it to follow these unfortunates into Africa, and make provision for them there, until they should be able to provide for themselves. In communicating this interpretation of the act to Congress he stated that some doubt had been entertained as to its true intent and meaning, and he submitted the question to them, so that they might, ' should it be deemed advisable, amend the same before further proceedings are had under it.' Nothing was doneby Congress to explain the act, and Mr. Monroe proceeded to carry it into execution according to his own interpretation. This, then, became the practical construction. When the Africans from on board the Echo were delivered to the marshal at Charleston, it became my duty to consider what disposition ought to be made of them under the law. For many reasons it was expedient to move them from that locality as speedily as possible. Although the conduct of the authorities and • citizens of Charleston, in giving countenance to the execution of the law, was just what might be expected from their high cha racter, yet a prolonged continuance of three hundred Afri cans in the immediate vicinity of that city could not have failed to become a source of inconvenience and anxiety to its inhabitants. Where to send them was the question. There was no portion of the coast of Africa to which they could be removed with any regard to humanity, except to Liberia. Under these circumstonces, an agreement was entered into with the Colonisation Society on the 7th of September last, a copy of which is herewith transmitted, under which the a iciety engaged, for the consideration of forty-five thousand dollars, to convey these Africans to Liberia from the agent of the United States , and furnish them during the period of , one year thereafter with comfort able shelter, clothing, provisions,. and medical attendance causing the children:to receive schooling ; and all, whether childre or adults, to be instructed • in the arts of civilised life, suitable to their .condition. This aggregate of 45,000 dots. was based on an allowance of 150 dots. for each indi vidual, and as there had been considerable mortality among them, and may be more before they. reach Africa, the society have agreed, in an equitable spirit, to make such a deduc tion from the amount as under the circumstances may ap pear just and reasonable. . This cannot' be fixed until we shall ascertain the actual 'number which may become a charge to the society.- ' " It was also distinctly agreed- that, under no circum stances, shall this government be . called upon for any addi tional expenses. • • • " The agents of the society manifested a laudable desire to conform to the wishes of the government throughout the transaction. They assured me that .after a careful exami nation they would be required to expend the sum of 150 dole. on each individual in.co plying- with the agreement, an d they would have nothi n left • to remunerate them for their care, trouble, and resp nsibility. At all events I could make no better arrangement, and there• was no other alter native. During the'. period when the' government itself, through its own agents, undertook die task-of providing for captured negroes in Africa, the cost per head was very much greater. . ' " There having been no outstanding• appropriation ap plicable to this purpose, I could not advance any money on the agreement. I therefore recommend.that an appropria tion may be made of the amount necessary to carry it into effect. " Other captures of a similar character may, and proba bly will be, made by our naval forces ; and I earnestly re commend that Congre,ss,may amend the second section of ' the act of March 3, 1819, so as to free its construction from the ambiguity which has so long existed, and render the duty of the President pl a in i n e x ec utin g it s prov i s i ons. ' I recommend to your favourable regard the local in terests of the district of Columbia. As the residence of Congress and the executive departments of the government, we cannot fail to feel a deep concern in its welfare. This is heightened by the high character and the peaceful and orderly conduct of its resident inhabitants. " I cannot conclude withoutperforming the agreeable duty of expressing my gratification that Congress so kindly. re spondbd to the recommendation ot my last annual message by affording me sufficient time before the close of their late session for the examination• of all the bills presented to me for approval. This change in the practice of Congress has proved to be a wholesome reform. It exerted a beneficial influence on the transactions of legislative business, and elicited the general approbation of the country. It enabled Congress to adjourn with that dignity and deliberation so becoming to the . representatives of this great Republic, without having crowded into general appropriation bills pro visions foreign to their nature, and of doubtful constitu tionality and expediency. Let me warmly and strongly commend this precedent, established by themselves, as a guide to their proceedings during the present session. " JAMES BUCHANAN. " Washington. City, Dec. 6, 1858." BIRTHS. BIIIINSIDE.—On the 10th inst., at Malta, the wife of Capt Burnside, H.M.'s nst Fusiliers, of a son. DEPREE.—On the 17th inst.. at 12, Bloomsbury square, Mrs. C. Templer. Depree, of a daughter. MARRIAGES. BARER—PENROSE—On the 16th inst., %It St. Pancras New Church, Mr. William J. Baker, Brecknock-place, Cam den New Town, to Ameli a , third daughter of Mr. Thos. H. Penrose, 88, Camden-road Villas. MACNAGHTEN—MARTIN.-011 the 18th inst., at St. Peter's Church, Eaton-square, Edward Macnaghten, Esq., of Lincoln's-inn, barrister-at-law, secon d son o f Sir E.W. Macnaghten, Bart. of Dundarave, county A n t r i m, Ire land, to Frances Arabella, only daughter of the lion. Sir Samuel Martin, one of the Barons of her Majesty's Court of Exchequer. DEATHS, BALGUY.—On the 16th inst., at Duffield, near Derby, John Balguy. Esq., Q.C., Commissioner of the Birmingham District Court of Bankruptcy, and Recorder of Derby, egel 77. BLAKE.—On.the 11th inst., John Joseph Blake, Esq., for merly of the Hon. E.l.C.'s Service, and late of the Bank of England, aged 85. LONDON : Printed and Published by MURDO YOUNG, of No. 112, Strand, Printer, at The Sun Office, No. 112, Strand, in . the Precinct of the Savoy, in the county of kiddlesei, Monday, Decerabei 20, 1848. Panic ine th "inte r Demo, Irith„ t The Por X°l A if o4 l-1 . Th i n tg titollvurei 4 , ( a ... Th rut on ia , r 41.1(.-x tart: Job /le 4 lI C nrY il Pitts 44 GEO: 801 tcx Al ltut n , Zhe 1 0 The Au ace totni n , - Gird- 4 teve rf he la Ai Li it 0 1 la tie( Inter, LP( SIOI,I , DR oop l i 4 Litho it ( Ito y r.. A The 't w 0 1