White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1858-12-30
{WHOLE NUMBER, 81.


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 United States steamer Water
Witch, and with other measures referred
to" in his annual message. And on the
18th July following, they made an ap-
preparation to defray the expenses and
compensation of commissioner to that
republic, should the President deem Il
proper to make such an appointment.
In compliance with these enactments;
| have appointed commissioner, who
has PROCEEDED to Paraguay, with full
powers and instructions to settle thess
differences in an amicable and peaceful
manner, if this be practicable. His ex-
perience and discretion Justify the hope,
that he may prove successful in convin-
cling the Paraguaysu government. that it
is due both to honor and justice, that they
should voluntarily and promptly make
atonement for the wrongs which they
have committed against the United States.
and indemnify our injured citizens whom
they have forcibly despoiled of their
property.
Should our commissioner prove un<
successful, after sincere and earnest eE-
fort, to accomplish the object of his mis-
sion, then no alternative will remain, but
the employment of force to obtain ''just
satisfaction" from Paraguay. In view Of
this contingency, the Secretary of the
Navy, under my direction, has fitted out
and despatched a naval force, to rendez-
vous near Buenos Ayres, which, it is be-
lieved, will prove sufficient for the occa-
sion. 1t is my earnest desire, however;
that it may not be found necessary to re-
sort to this last alternative.
When Congress met in December last,
the business of the country had Just been
crushed. by one of those periodical rsvul-
sions. which are the inevitable consequences
of our unsound and extrsvagant system
of bank credits and inflated currency
With all the elements of national wealth
in abundance, our manufactures were Sus-
pended, our useful public and private
enterprises were arrested. and thousands
of laborers were deprived of employment
and reduced to want. Universal distress
prevailed among the commercial, manu-
featuring, and mechanical classes.
This revulsion was felt the more severS-
ly in the United States, because similar
causes had produced the like deplorabls
effect throughout the commercial nations
of Europe. All were experiencing sad
reverses at the same moment. Our man.
ufactures everywhere suffered severely,
not because of the recent reduction IN the
tariff of duties on imports, but because
there was no demand at any price for
their productions. The peopls 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 restitution was the ineT4
table consequence, among the great num-
Der Of workmen who had been employed
in this useful branch of our industry
There could be no supply whers there was
no demand. To present an example, Tiers
could be no demand for railroad iron,
after our magnificent system of railroads,
its benefits to every portion Of
he Union. had been brought to q dead
pause. The same consequences have re-
'ulted from similar causes to many other
branches of useful manufactures. Il is
that where there is no ability
70 purchase manufactured articles, these
,annot be sold, and consequently must
lease to be produced.
No government. and especially q gov
Of such limited powers as that
If the United States. could have prevent
ID the late revulsion. The whole COM
nercial world seemed for yesrs to havS
,een rushing to this catastrophe. Ths
anne ruinous consequences would have
ollowed in the United States, WhethSVi
he duties upon foreign imports hsd re-
NAMED as they were under the tariff Of
1916. or had been raised 10 much high
IT standard. The tariff of 1857 had no
Igency in the result. The general causes
xisting throughout the world. could not
lave been controlled BY the legislation Of
my particular country.
The periodical reTulsions which ha1G
existed in our past history, must continue
o return at intervals, so long as our pres
mt unbounded system Of bank credits
hall prevail. They will. however. prob
IDLY be less severe in the future becauss
is not to I've expected, Of least for many
Tears to come, that the commercial M.
ions Of Europe. with whose interests our
,wn are so materially involved, will ex-
Jose themselves to similar eaIamities.--
But this subject was treated so much Et
arge in my last annual message that
hall not pursue it further. Still, l re-
pectfully renew the recommendation, IN
avor of the passage Of uniform bank
upt law. applicable to banking institu-
ions. This is all the power over The
ubject which, / believe. the federal gov
possesses. Such law would
Mitigate, though it might not prevent the
vii. The instinct Of sslf-PreserVation
night produce wholesome restraint up
IN their banking business, If they knew in
Idvance, thai q suspension Of specie pay
nents would inevitably produesthef efSil
leath.
But the effects Of the revulsion are now
lowly but surely passing away. The
mercy and enterprise of our citizens, viii
'ur unbounded resources, will, within IL
period OF another year, restore . state Of