Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1858-12-11


nnrfel ana the duties on other articles of our pro.
uction have been diminished in nearly the same
proportion.
regret to s.otc that the government of Brazil
still continues to levy on export ty Of about II
pes ccut on coffee, Notwithstanding this article is
admitted free from duty in the United States.
rms Is a heavy charge upon the consumers Of cof-
lee in our country, as we purchase half of the en-
tire surplus crop Of that article raised In Brazil
our minister under instructions, will rcitcrate his
efforts to have this export duty removed and IL
is hoped that the enlightened government of the
emperor will adopt this wise, just aud equal poli
cy. In that event there is good reason to believe
that the commerce between the two countries will
greatly Increase much 10 the advantage of both
The claims of our citizens against the govern
ment 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 trust successful effort will be made tiy our
munster to procure their final adjustment
On the ID Of June last, Congress passed n Joint
resolution authorizing the president "to adopt
such measures and use such force as, in his judis-
ment, may be necessary and advisable" "for Tho
| purpose of adjusting the differences between the
| United States and the republic of Paraguay. in
| connection with the att k 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 approximation
| TO defray the expenses and compensation of n
commissioner TO that republic, should the presi
dent deem II proper to make such an appointment
In compliance with these cnactincnts have M.
pointed commissioner, who has proceeded to
Paraguay, with full powers and instructions to
settle these differences in an amicable aud peace.
full manner, If this be practicable His exper-
fence and discreet on justify the hope that he NAV
prove successful In convincing the Parnguaynn
government that IL Is due both to honor and ius.
tice that they should voluntarily and promptly
make atonement for the wrongs which they have |
committed against the United States and indem-
Nifty our injured citizens whom they have forcbly |
despollei of their properly. Should our commits
sloner prove unsuccessful, ai'er sincere aud |
earnest Effort to accomplish the object OF his mis-
sion then no alternative will remain but the en-.
ployment of force to obtain 'ust satisla, lion"
from Paraguay. In view of this contingency the |
socntuy of the navy, under my direction has fit
ted out and dispatched naval force 70 rcndcz. |
vouS near DucneS Ayrcs, which, il is believed !
VIII prove sufficient for the occasion. Ii Is nv |
earnest desire, however, that it may not he found
necessary 10 resort to this last alternative
When Congress met in December last the bust |
ness of the county had just been crushed by one
OF those periodical reyasiOns which are the ineyi
table consequence OF our unsOund aud extravA-
giant system of bank credits and inflated curren.
cy. With all the elements of national wealth in
Abundance, our manufactures were suspended
our useful public and private enterprises were mr..
rested, aud thousands Of laborers were deprived
of employment aud reduced 10 wLnt Universal
distress prevailed anoIg the commercial mann.
featuring and mechanical classes. his revulsiou
was ielt the mort severely in the United States
because similar causes had produced the like de- |
plOraOle effects throughout the commercial ma |
tons ei Europe. All were experiencing sad re-
verses at the same moment. Our manufacturer,
everywhere suffered severely, not because of the
recent reduction IN the tariff of duties on imnnrts
but because there was no demand nj amy nricc |
Tor their productions. The people were Obliged |
to restrict themselves IN their purchases to arti lies
OF prime necessity. In the general prostitution of
business the iron manufacturers in different states
probably suffered more than any other ella, and
much restitution was the inevitable coD,eoaence |
among the great number of workmcn who had
been employed in this useful branch OF our in
dustry. There could be no supply where there
was no demand. t. present an example. there
could be no demand for railroad iron atter orr
magnificent system of railroads. extending its
Dement'S TO every portion of the Union had been
brought 10 dead pause. The same consequences
nave resulted from similar causes to many other
branches of useful manufactures. 1, is self evil
uent that whore shore 10 ability purchase |
manufactured articles, these cannot he sold and
consequently must cease to be produced.
No government, and especially Il government
OF such limited powers rs that Of the United
States, could have prevented the lite Revision
The whole commercial world seemed :or vca.s TO
have been rushing to this catastrophe. The same
rnnous consequences would have followed in the
United States whether the duties upon foreign
imports had remained as they were under the tar.
i'll of SIG. or had been raised to a much higher
standard. The tariff of 1877 had no ascncy 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 nj inter
walls so long our present unbounded system of
bank credits shall prevail. They WILL however,
probably be less severe In future; because IL 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 in.
volvcd, Will expose themselves to similar calami.
ties But this subject treated so much nj
large in my last annual message that shall nor
now pursue it further Still, | respectfully renew
the recommendation, in favor of the passage of a
uniform bankrupt law, applicable to banking in
stitutious. This is all the direct power over the
subject which, believe, the federal government
possesses. Such law would mitigate, thou III il
might not prevent the evil. The instinct of self
Preservation might produce wholesome restraint
upon their banking business, il they krew, in adj
vance, that suspension of specie payments
would inevitably produce their cyll death
But the effects of the Revision are now slowly
but surely passing away. the energy aud enter.
prise of our citizens, with our unbounded resour.
ces, Will, within the period OF another year. re-
store state of wholesome industry and trade
Capital has again accumulated in Our large cities
The rates of interest there very low Conf.
dence is gradually revving, and soon us il is
discovered that this capital can be proftaby en-.
ploycd in commercial and manufacturing enter.
prlses, and in the construction of railroads and |
other works of public and private Improvement
prosperity will again smile throughout the land.
lie is vain, however To disguise the fact from our
selves, that Il speculative imitation in our curren-
cy, without Il corresponding initiation in other |
countries whose manufactures come into compe- |
titlon with our own, must ever produce disastrous
results 10 our domestic manufactures. No tariff
short of absolute prohibition, can prevent these
evil consequences.
In connection with this subject, it is propcr.to
refer to our financial condition. The same causes
which have produced peruniary distress through
out the country, have so reduced the amount of
imports from foreign countries, that the revenue
has proved inadequate to meet the necessary cx.
pehses Of the government. To supply the def
cheney, CONGRESS, by the act Of the 2]i of De-
cember, 1897, authorized the issue of $50 900 900
of treasury notes; and, this proving inadequate,
they authorized, by the act Of June H. 1853, a
loan OF ~ ooo,ouo, TO be applied to the pay
ment of appropriations made liy law"
No statesman wOuld advise that we should 20 on
in, reasng the national debt to meet tue ordinary
expenses of the government. This would be n
most runous policy. In case of war our CT. dit
must be our chief resource, at least for the first
year, aud this would be grea-'y impaired by bay.