The Sun.
London, England, 1857-12-21 00:00:00

"HORSE GUARDS.

" Sir,—Her Majesty's Ministers having taken into
consideration the present defenceless state of the country,
consequent upon the reduction of our home force in the
prosecution of the Indian war, and the withdrawal and
embodiment of a great portion of the militia, they have
determined upon raising some auxiliary corps of local
militia, formed of gentlemen of the present Yeomanry
Cavalry, and others willing to serve as volunteers therein.
" It being of the greatest importance in promoting
this object to nominate as officers gentlemen whose
energy and ability have been already proved, communi-
cations have been addressed to the colonels of each
existing Yeomanry corps, soliciting the recommendation
of such gentlemen who are best fitted to officer the new
force.

" I have much pleasure in informing you that your
name has been submitted to us for the purpose, atd
approved of. You will please, therefore, to attend at the
Commander-in.Citief's office to receive your commission
and instructions, on Saturday next, the 12th inst., at
10 a.m. You will wear the full uniform of the troop
to which you belong.
" 1 am, Sir, your obedient servant,
" PANMIIRE."

The gentleman who had received this unexpected
nomination did not fail to be in attendance at the hour
appointed, radiant in all the glories of the Royal -
Yeomanry Corps. Some dozen or more officers,
each representing some other gallant corps, were
assembled in the outer room of the War Minister,
and warm and hearty were the mutual congratulations
addresped to each other upon the good fortune which
had smiled upon them. A short interview with the
military authorities led to the unpleasant discovary that
all the expectant officers of the "Auxiliary Local Militia"
had been the victims of a most unmerciful joke, and that
her Majesty's Ministers had really no intention of re-
medying the "defenceless state of the country" by the
formation of any gallant corps such as that to which these
gentlemen from the country had been so recently ap-
pointed. We are informed that Mr. Field, and the
detective staff of the "Private Inquiry. Office," have
been directed by the military authorities to discover, if
possible, the ingenious founder of the "Auxiliary Local
Militia," in order that Lord Panmure and the heads of
the department may reward him with that promotion
which his patriotic anxiety for the defenceless state of
the country so justly merits.

It is understood that the following members of the
Chancery-bar are about to be called to the degree of
Queen's Consel :—Messrs. Shapter, Greene, Amphlett,
Fleming, Bazalgette, Toiler, and Goldsmith.
ME ST. PANCEAS TBAGEDT.—The adjourned inquest
was held this day upon the bodies of the man and
woman who were discovered dead in a room in Har-
per's coffee-house, 3s, Drummond-street. The bodies
have not been identified. Nothing further than that
which has already appeared in The Sun transpired this
morning. The jury returned the following ♦erdict :
" That the deceased persons were found dead, with their
throats cut, but how such wounds were inflicted there
was ao evidence to show."

THE COMMERCIAL CRISIS, AND HOW IT AFFECTS THE
DIFFERENT CLASSES.—When we compare the various
opinions which have been expressed with reference to
commercial vicissitudes during a period of years by many
of the periodicals of the day, it is really laughable to
remark their extreme fallacy. As an evidence of this, a
contemporary ♦entured not long ago to assert that a
Silk Dress would be "a lady's despair," and as difficult
to obtain as au Indian shawl t But the result of the
panic has been to bring down the aggrandised values of
silks to their normal standard. In fact, the Lyons'
manufacturers aro selling their silks at a lower price than
for years past ; although it is very probable that as the
crisis passes away prices will again advance. Messrs.
Jay were particularly fortunate last week, when in the
Lyons' market, to meet with a manufacturers' stock at
full 25 per cent, under late prices ; and these goods were
forwarded immediately, and are now to be seen at the
London General Mourning Warehouse, 247 to 251,
Regent-street. There cannot be more suitable materials
for Dress at this season of the year than those referred
to, as, although " black," they are not indicative of
Mourning, but are of beautiful figured and brocaded
patterns, without being conspicuously showy.

AMERICA.

THE PRESIDENT'S MESSAGE.
LIVERPOOL, SUNDAY.
The Royal Mail steamship Africa, Capt. Shannon,
has arrived.

She left New York on the 9th inst., with 66 pas-
sengers and above two million dollars in specie.

The chief intelligence of interest is the Presi-
dent's Message, which was delivered on the Bth, at
Washington. It is as follows :

FELLOW CITIZENS OF THE SENATE AND HOUSE OF

REPRESENTATIVES,-...
In obedience to the command of the constitu-
tion it has now become my duty to give to Con-
gress information of the state of the Union, and re-
commend 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 has bestowed upon
this people, and our united prayers ought to ascend
to Him that He would continue to bless our great
republic in time to come as He has blessed it in
time past.
THE MONETARY CRISIS.
Since the adjournment of the last Congress our
constituents have enjoyed an unusual degree of
, health. The earth has yielded her fruits abund-
I antly, and has bountifully rewarded the toil of the
husbandman. Our great staples have commanded
high prices ; and up till within a brief period our
manufacturing, mineral, and mechanical occupa-
tions have largely partaken of the general pro-
sperity. We have possessed all the elements of
material wealth in rich abundance, and yet, not-
withstanding all these advantages, our country in
its monetary interests is at the present moment in
a deplorable condition. In the midst of unsurpassed
plenty of all the productions of agriculture, and all
the elements of national wealth, we find our manu-
factories suspended, our public works retarded, our
private enterprises of different kinds abandoned,
and thousand of skilful labourers thrown out of
employment and reduced to want.
The revenue of the Government, which is chiefly
derived from duties on imports from abroad, has
been greatly reduced, whilst the appropriations
made by Congress at its last session for the current
fiscal year are very large in amount. Under these
circumstances a loan may be required before the
close of your present session ; but this, although
deeply to be regretted, would prove to be only a
slight misfortune, when compared withthe suffering
and distress prevailing among the people. With
this the government cannot fail deeply to sympa-
thise, though it may be without the power to extend
relief. It is our duty to inquire what has produced
such unfortunate results, and whether their recur-
rence can be prevented.
In all former revulsions the blame might have
been fairly attributed to operating causes, but not
so upon the present occasion. It is apparent that
our existing misfortunes have proceeded solely from
our extravagant and vicious system of paper cur-
rency and bank credit exciting the people to wild spe-
culations and gambling in stocks. These revulsions
must continue to recur at successive intervals so
long as the amount of the paper currency and bank
loans and discounts of the country shall be left to

the discretion of 1,400 irresponsible banking insti-
tutions, whichfrom the very law of their nature will
consult the interest of their stockholders rather
than the public welfare.
The framers of the constitution, when they gave
Congress the power to coin money, and to regulate
the value thereof, and prohibited the States from
coining money, emitting bills of credit, or making
anything but gold and silver coin a tender in pay-
ment of debts, supposed they had protected the

people against the evils of an exc6ssive and irre-
deemable paper currency. They are not responsi-
ble for the existing anomaly that a governme t en-
dowed with the sovereign attribute of coining
money, and regulating the value thereof, should
have no power to prevent others from driving this
coin out of the country, and filling up the channels
of circulation with paper which does not represent
gold and silver.
It is one of the greatest and most responsible
duties of government to ensure 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 internal trade and

foreign exchanges. If this should be greatly above,
or greatly below, the proper standard, the market-
able value of every man's property is increased or
diminished in the same proportion, and injustice
to individuals as well as incalculable evils to the
community are the consequence.
Unfortunately, under the construction •f the
federal constitution, which has now prevailed too
long to be changed, this important and delicate
duty has been dissevered from the coining power,
and virtually transferred to more than 1,400 state
banks acting independently of each other, and re-
gulating their paper issues almost exclusively by a
regard to the present interest of their stockholders,
Government exercising their sovereign power of
providing a paper currency instead of coin for the
country.
The first duty which these banks owe to the pub-
lic is to keep in their vaults a sufficient amount of
gold and silver to ensure the convertibility of their
notes into coin at all times and under all circum-
stances. No bank ought ever to be chartered with-
out such restrictions on its business as to secure
this result. All other restrictions are comparatively
vain. This is the only true touchstone—the only
efficient regulator of a paper currency, the only one
which can guard the public against over issues and
bank suspensions. As a collateral and eventual
security it is doubtless wise, and in all cases ought
to be required, that banks shall hold the amount
of United States and State debt equal to their notes
iu circulation, and pledged for their redemption.
This, however, furnishes no adequate security
against over issue ' • on the contrary, it may be per-
verted 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 themselves, they cannot be converted
into gold and silver at the moment of pressure, as
our experience teaches, in sufficient time to pre-
vent the bank suspensions and the depreciation of
bank notes.

In England, which is to a considerable extent a
paper-money country, though vastly behind our
own in this respect, it was deemed advisable, ante-
rior to the Act of Parliament of 1844, which wisely
separated the issue of notes from the banking de-
partment, for the Bank of England always to keep
on hand gold and silver equal to one-third of its
combined circulation and deposits. If this pro-
portiox was no more than sufficient to secure the
convertibility of its notes with the whole of Great
Britain, and to some extent tho continent of Eu-
rope, 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
same proportion would certainly be insufficient
under our banking system.
Each of our 1,400 banks has but a limited cir-
cumference 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 im-
mediate liabilities ; and yet I am not aware, with
the exception of the banks of Louisiana, that any
State bank throughout the Union has been required
by its charter to keep this or any other proportion
of gold and silver, compared with the amount of its
combined circulation and deposits.
What has been the consequence ? In a recent
report made by the Treasury department on the
condition of the banks throughout the different
States, according to returns dated nearest to Jan.,
1857, the aggregate amount of actual specie in their
vaults is 58,349,838 dols. ; of their circulation,
214,778,822 dols.; andcf their deposits, 230,351,352
dols. Thus it appears these banks in the aggregate
have considerably less than one dollar in seven of
gold and silver compared with their circulation and
deposits. It was palpable, therefore, that the very
first pressure must drive them to suspension, and
deprive the people of a convertible currency, with
all its disastrous consequences. It is truly wonder-
ful that they should have so long continued to pre-
serve their credit, when a demand for the payment
of one-seventh of their immediate liabilities would
have driven them into insolvency. And this is the
condition of the banks, notwithstanding that 400
millions of gold from California have flowed in
I upon us within the last eight years, and the tide
still continues to flow. Indeed, such has been the
extravagance of bank credits, that the banks now
hold a considerably less amount in specie, either in
proportion to their capital or to the circulation
and deposits combined, than they did before the
discovery of gold in California. Whilst in the year
1838 their specie in proportion to their capital
was more than equal to 1 dol. for 6 dols. and 33
cents of their capital, in the year 1848 the specie
was equal within a very small fraction to 1 del. in
5 of their circulation and deposits; in 1857 it is not
equal to 1 dol. in 7i of their circulation and
depo-
sits.

From this statement it is easy to account for our
financial history for the last 40 years. It has been
a history of extravagant expansion in the business
of the country followed by ruinous contractions.
At successive intervals the beat and most enter-
prising men have been tempted to their ruin by ex-
cessive bank loans of mere paper credit exciting
them to extravagant importations of foreign
goods,
wild speculations, ruinous and demoralising stock
gambling. When the crisis arrives, the banks can
extend no relief to the peoples In a vain struggle

to redeem their liabilities in specie, they are com-
pelled to contract their loans and issues; and at last,
in the hour of distress, when assistance is needed,
they and their debtors together sink into insolvency.
It is this paper system of extravagant expansion
raising the nominal rate of every article beyond its
real value when compared with the cost of similar
articles in countries whose circulation is wisely re.
gulated, which has prevented us from competing in
our own market with foreign manufacturers, has
produced extravagant importations, and has coun-
teracted the effect of the large incidental protection
afforded to our domestic manufacturers by the pre.
sent revenue tariff. But for this the branches of our
manufactures, composed of raw materials, the prcs.
auction of our own country, such as cotton, iron,
and woollen fabrics, would not only have occupied.
almost exclusive possession of the market, but
would have created for themselves a foreign market
throughout the world.
Deplorable as maybe our present financial condi•
tion, we may yet indulge in bright hopes for the fu-
ture. No other nation has ever existed which could
have endured such violent expansions and contras
tions of paper credits without lasting injury, yet
the buoyancy of youth, the energies of our pope.
lation, and the spirit which never quails before dif-
ficulties, will enable us soon to recover from our
present financial embarrassments, and may never
occasion us speedily to forget the lesson which they
have taught.
In the meantime it is the duty of the Government
by all proper means within its power, to aid in alle-
viating the sufferings of the people occasioned by
the suspension of the banks, and to provide against
a recurrence of the same calamity. Unfortunately,
in either aspect of the case, it can do but little.
Thanks to the independent treasury, the Govern..
ment has not suspended payment, as it was com-
pelled to do by the failure of the banks in the year
1837. It will continue to discharge its liabilities
to the people, and gold and silver its disburse..
meats in coin, will pass into circulation and mate.
rially assist in restoring a sound currency.
From its high credit, should we be compelled to
make a temporary loan, it can be effected on ad..
vantageous 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
shall be postponed if this can be done without in.
jury to the country. Those necessary for its de.
fence shall proceed as though there tad been no
crisis in our monetary affairs.
But our federal Government cannot do much to
provide against a recurrence of existing evils.
Even if insurmountable constitutional objections
did not exist against the creation of a national
bank, this would furnish no adequate preventive
security. The history of the last bank of the United
States abundantly proves the truth of this asser-
tion. Such a bank could not if it would regulate
the issues and credits of 1,400 state banks in such
a manner as to prevent the ruinous expansions and
contractions of our currency which afflicted the
country throughout the existence of the late bank,
or secure us against future suspensions.
In 1825, an effort was made by the Bank of
England that it might curtail the issues of the cowl-
try banks under the most favourable circumstances.
The paper currency had been expended to a ruin.
ous extent, and the hank put forth all its power to
contract it in order to reduce the prices and restore
the equilibrium of the foreign exchanges. It no.
cordingly commenced a system of curtailment of its
loans and issues, in the vain hope that the joint.
stock and private banks of the kingdom would be
compelled to follow its example. It found, how•
ever, that as it contracted, they expended, and at
the end of the process, to use the language of a very
high official authority, whatever reduction of the
paper circulation was effected by the Bank of Eng.
land in 1825 was more than made up by the issues
of the country banks.
But a bank of the United States would not, if it
could, restrain the loans and issues of the state
banks, because its duty as a regulator of the cur•
rency must often be in direct conflict with the im-
mediate interest of its stockholders. If we expect
one agent to restrain or control another, their into.
rests must in some degree be antagonistic ; but the
directors of a bank of the United States would feel
the same interest and the same inclination with the
directors of the state banks to expand the currency,
to accommodate their favourites and friends with
loans, and to declare large dividends. Such has
been our experience in regard to the last bank.
After all, we must mainly rely upon the pad*.
tism and wisdom of the States for the prevention
and redress of the evil. If they will afford us a real
specie basis for our circulation, by increasing the
denomination of bank notes first to 20 and after•
wards to 50 dollars ; if they will require that the
banks shall at all times keep on band at least one
dollar of gold and silver for every three dollars of
their circulation and deposits ; and if they will pro.
vide, by a self-executing enactment, one that Wu
thing can arrest, that the moment they suspend
they shall go into liquidation, I believe that such
provisions, with a weekly publication by each bank
of a statement of its condition, would go far to se-
cure us against future suspensions of specie pay.
ments.
Congress, in aly opinion, possesses the power to
pass an uniform bankrupt law applicable to all
banking institutions throughout the United States,
and I strongly recommend its exercise. This would
make it the irreversible organic law of each bank's
existence that a suspension of specie payments shall
produce its civil death. The instinct of self-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 identified with the habits of our
people, that they cannot at this day be suddenly
abolished without much immediate injury to the
country. If we could confine them to their appro-
priate spheres, and prevent them from administer-
ing to the spirit of wild and reckless speculation by
extravagant loans and issues, they might be con-
tinued with advantage to the public. But this I
say, after long and much reflection ; if experience
shall prove it be impossible to enjoy the faculties
which well-regulated banks might afford without at
the same time suffering the calamities which the
excesses of the banks have hitherto inflicted upon
the country, it would then be far the lesser evil to
deprive them altogether of the power to issue a
paper currency and confine them to the functions
of banks of deposit and discount.
RELATIONS WITH GREAT BRITAIN.
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 Congress, have been happily
terminated by the appointment of a British minister
to this country, who has been cordially received.
Whilst it is greatly to the interests, as I am con•
vinced it is the sincere desire of the governments
and people of the two countries, to be on terms of
intimacy and friendship with each other, it has
been our misfortune almost always to have had
some irritating, if not dangerous, outstanding ques•
tion with Great Britain. Since the origin of the
government we have been employed in negotiating
treaties with that power, and afterwards in discus..
sing their true intent and meaning.
In this respect the convention of April 19, 1850,
commonly called the Clayton and Bulwer Treaty,
has been the most unfortunate of all, because the
two governments placed directly opposite and con-
tradictory constructions upon its first and most im.
portant article. Whilst in the United States we
believed that this treaty would place both powers
upon an exact equality, by the stipulation that
neither will ever occupy, or fortify, or colonise, or
assume, or exercise any dominion over any part of
Central America, it is contended by the British Go.
vernment that the true construction of this lan-
guage has left them in the rightful possession of all
that portion of Central America which was in their
occupancy at the data of the treaty ; in fact that
the treaty is a virtual recognition on the part of the
United States of the right of Great Britain, either
as owner or protector of the whole extensive coast
of Central America, sweeping round from the Ric,
Hondo to the port and harbour of San Juan de
Nicaragua, together with the adjacent Bay Islands,
except the comparatively small portion of this be-
tween the Serbon and Cape Honduras, and accord.
ing to their construction the treaty does ne more
than simply prohibit them from extending their
possessions in Central America and beyond the pre-
sent limits.
It is not toomuchto assert that, if in the United
States the treaty had been considered susceptibleof
such a construction, it would never have been ne-
gotiated under the authority of the President, nor
would it have received the approbation of the
Senate. The universal conviction in the United
States is, that when our government consented to
violate its traditional and time-honoured policy,
and to stipulate with a foreign government never to
os Americaniderati on
op cocrut
ipoyn oorf a cequur reew
nt e r r toonrtyi
nine
nt 1 it
,e Centralthe e
that
pGI a
er e eat
nB
the
same
eh opuolsdi
acereapfinorthtishiss
tion with ourselves.
rifict acet lweasast,
Whilst we have no right to doubt the sincerity of
the British Government in their construction of the
treaty, it is at the same time my deliberate convic-
tion that this construction is in opposition 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 new treaty having
this laudable object in view
was signed in London on the 17th Oct. 1850, and

was submitted by the President to the Senate on
the following 10th Dec. Whether this treaty, in
its original or amended form, would have accom-
plished the object intended without giving birth
to new and embarrassing complications between the
two Governments, may perhaps be well questioned.
Vertain it is, however, it was rendered much less
objectionable by the different amendments made to
it by the Senate.
The treaty as amended was ratified by me on
12th March, 1857, and was transmitted to London
for ratification by the British Government. That
Government expressed its willingness to concur in
all the amendments made by the senate, with the
single exception of the clause mentioned as to
Ruatan and the other islands in the Bay of Hondu-
ras. The article in the original treaty submitted to
the senate, after the reciting that these islands and
their inhabitants having bees by a convention
bearing date the 27th Aug., 1856, between her
Britannic Majesty and the Republic of Honduras,
constituted and declared a free territory under the
sovereignty of the said Republic of Honduras, sti-
pulated that the two contracting parties do hereby
mutually engage to recognise and respect in all
future time the independence and rights of the
said free territory as a part of the Republic of Hon-
duras.

Upon an examination of this convention between
Great Britain and Honduras of the 27th August,
1856,- it was found that whilst declaring the Bay
Islands to be a free territory under the sove-
reignty of the Republic of Honduras, it deprived
that republic of rights, without which its sove-
reignty over them could scarcely be said to exist.
•It divided them from the remainder of Honduras,
and gave to them their own, legislative, executive,
and jttdioial officers, elected by themselves. It
deprived, the, Governor of Honduras of the taxing
power iri-every +form, and exempted the people of
• the-islands,froua the performance of military duty
exCept, for their own exclusive defence. It also
prohioitedthatrepublie from erecting fortifications
upon diem for their protection, thus leaving them
open to invasion from any quarter ; and finally pro-
vided that slavery shall not at any time hereafter
be permitted to exist therein.
Had Honduras ratified thisconvention, 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 times these stipulations, to the prejudice
of Honduras and 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 substi-
tuted in its stead a simple recognition of the sove-
reign right of Honduras to those island 3 in the fol-
lowing language :—" The two contracting parties
do hereby mutually engage to recognise and respect
the islands of Ruatan, Hessena, and Morab, situate
in the Bay of Honduras, and off the coast of the
Republic of Honduras, as under the sovereignty,
and as part of the said Republic of Honduras."
Great Britain rejected this amendment, assigning
as the only reason that the ratifications of the Con-
vention of the 27th August, 1856, between her and
Honduras, had not been exchanged, owing to the
hesitation of that Government ; had this been done
itatated that her Majesty's Government would have
had little difficulty in agreeing 'to the modification
proposed by the senate, which would have had in
effect the same signification as the original wording.
Whether this would have been the effect whether_
the circumstance of the exchange of the ratification
of, the. Briti4h Convention with Honduras prior in
point of time to the ratification of our treaty with
Great Britain, Would in effect have had the same
signification as the original wording, and this have
nullified the amendment of the senate, May well be
doabted. It is perhaps fortunate that the question
has never arisen.
The British Government immediately after re-
jecting the treaty as' amended proposed to enter into
a new treaty with the United States, similar in all
respects to the treaty which they had just refused
to ratify, if the United States would consent to add
to the senate's clear and unqualified recognition of
the sovereignty of Honduras over the Bay Islands,
the following conditional stipulation :—" Whenever
and so soon as the Republic of Honduras shall have
concluded and ratified a treaty with Great Bri-
tain, by which Great Britain shall have ceded
mid the Republic of Honduras shall have accepted
the said islands, subject to the provisions and con-
ditions contained in such treaty."
This proposition was of course rejected. After
the Senate had refused to recognise the British
convention with Honduras of the 27th August, 1856,
with full knowledge of its contents, it was impossi-
ble fer me, necessarily ignorant of the provisions
and conditions which might be contained in a fu-
ture convention between the same parties, to sanc-
tion them in advance.
The fact is, that when two nations like Great Bri-
tain and the United States—mutually desirous as
they are, and I trust ever may be, of maintaining
the most friendly relations with each other—have
unfortunately concluded a treaty which they under-
stud in senses directly opposite, the wisest course
is to abrogate such a treaty by mutual consent, and
to commence anew. Had this been done promptly,
all difficulties in Central America would most pro-
bably ere this have been adjusted to the satisfaction
of both parties. The time spent in discussing the
meaning of the Clayton and Bulwer treaty would
have been devoted to this praiseworthy purpose,
aid the task would have been the more easily ac-
complished because the interest of the two countries
in Central America is identical, being confined to
securing a safe transits over all the routes across
the Isthmus.
Whilst entertaining these sentiment., I shall
nevertheless not refuse to contribute to any reason-
able adjustment of the Central American questions
which is not practically inconsistent with the Ame-
rican interpretation of the treaty. Overtures fur
this purpose have been recently iaade 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.
CONTINENTAL PO WE RS.

With France our ancient relations of friendship I
still continue to exist. The French government
have in several recent instances, which ,reed not be
enumerated, evinced a spirit of g modwill and kind-
ness towards our country which I he trtily recipro-
cate. It is, notwithstanding, inuc'i to be regretted
that two nations whose productions are of such a
character as to invite extensive exchanges and freest
commercial intercourse shield continue to enforce
auci-nt and obsolete restrictions of trade] against
cacti other. Our commercial treaty with France is
in this respect an exception from our treaties with
.all ether commercial nations. It jealously levies dis-
nriminating duties both on tonnage and on articles,
the growth, produce, or manufacture of the one
country, or 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 general produc-
tions 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 hereby entered
into the proposed arrangements with the United
States. The act of May 24, 1828, reduced this re-
striction, and offered a similar reciprocity to all
such vessels without reference to the origin of their
cargoes. 'Upon these principles our commercial
treaties and arrangements have been founded, ex-
cept with France, and let us hope that the excep-
tion may not long exist.
Our relations with Russia remain, as they have
ever been, on the most friendly footing. The pre-
sent emperor, as well as his predecessors, have never
• failed, when the occasion offered, to manifest their
good will to our country, and their friendship has
always been highly appreciated by the government
and people of the United States.
With all other European governments, except
thatof Spain, our relations are as cordial as
-we could
desire.

8

• • I regret to say that no progress whatever has been
.. nta.de, since the adjournment of the United States
greas, towards the settlement of any of the
'numerous claims of our citizens against the Spanish
g"ernment.
.I)eguiftthat the •
h„ t
.ar frigate Ferrolana, on the high
outrage committed on our flag
seas" off t t raaT
America Cuba, in March, 1855, by firing
into the
hateamer El Dorado, and
demanding andaearott
,remains unacknow-
ledged and unredre,mt4ther,
be regretted.
general tone and tem-
towards that of the
per of the Spanish government
United States are much to
•Our present EnvoyExtrao A.
I-Illvey and Minister
' Plenipotentiary is to be recalled, and it i 3
my ,
pendua., with
ur-
to send out a new minister to %pail)
pose
special instructions on all questions
determination
tween the two governments, with a dete • g be-
te have them speedily and amicably' adjiuted, if
) * . i nes (be possible.
wen,,o •_lii the meantime, whenever our minister -urge,
e!i'l bthajtist claim of our citizens on tbe notice of the
?oc.i. Spanish government he is met with the objectiont
that Congress havenever made the appropria t n.
" rrrecommended by President Polk, in his annual
'message of December, 1847, to be paid to the Span-
ill government, for the purpose of distribution
among the claimants in the Imisttd case. A similar
recommendation was made by my immediate Pro-
decessor, in his message of Decernl)ew 1853 ; arrd ,
entirely concurring with both in the opinion tint
this indemnity is justly due under the treaty with
Spain, of 27th Oct., 1795, I earnestly recommend