The national era. [volume] (Washington [D.C.]) 1847-1860, 1858-12-09

ernments, as to the right OF New Granada TO
levy tonnage duty upon the vessels of the
United States in its ports of the isthlnus, and
to levy passenger tax upon our citizens ar
irving in that country, whether with a design
to remain there or to pass from ocean to ocean
by the transit route and also tax upon the
mail of the United States transported over the
Panama railroad. The Government Of New
Granada has been informed that the United
States would consider the collection of either of
these taxes as an act in violation of the treaty be-
tween the two countries, and as such would be re-
sisted 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 satisfactory 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.
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 extern
sve mutual exchanges. A large quantity of
American flour is consumed in Brazil, whilst
more than treble the amount in value If Brazil
ian coffee is consumed in the United States.
Whilst this is the case, heavy duty has been
levied, until very recently, upon the Importation
of American flour into Brazil. | am gratifed,
however, to be able to inform you that in Sep
TENDER last this has been reduced from 81 80
to about forty nine cents per barrel, and the du-
ties on other articles of our production have
been diminished in nearly the same proportion.
Iregret to state that the Government of Brazil
still continues to levy an export duty of about
ii per cent. on coffee, Notwithstanding this
article is admitted free from duty in the United
States. This is heavy charge upon the con-
sumers of coffee in our country, as we purchase
half of the entire surplus crop OF that article
raised i'm Brazil. Our Minister, under instruc-
tions, will reiterate his efforts to have this ex-
port duty removed and it is hoped that the en-
hghtened 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 countries will greatly increase,
much to 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. renewed and ear
nest and trust successful effort will be made
by our Minister to procure their final adjustment.
On the I'd of June last Congress passed joint
resolution authorizing the President "to adopt
such measures and to use such force as, in his
judgment, may be necessary and advisable
for the purpose of adjusting the differences
DStWttu Tue Oulltu OtdteS duu the hepuUlC Ol
Paraguay, in connection with the attack on the
United States steamer Water Witch, and with
other. measures referred to" in his annual mes
sage. And on the 18th of July following they
made an appropriation to defray the expenses
and compensation of Commissioner to that Re-
public, should the President deem it 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 these differences in amicable and
peaceful manner, if this be practicable. His ex-
perience and discretion justify the hope that he
may prove successful in convincing the Para
guayan 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 unsuccessful,
after a sincere and earnest effort to accomplish
the object of his mission, then no alternative
will remain but the employment of force to OBJ
tain Just satisfaction from Paraguay. In view
of this contingency the Secretary of the Navy,
under my direction, has fitted out and dispatched
a naval force, to rendezvous near Buenos Ayres,
which, it is believed will prove sufficient for the
occasion. 1t is my earnest desire, however, that
it may not be found necessary to resort to this
last alternative
When Congress met in December last, the bust
ness of the country had just been crushed by one
of those periodical revulsions which are the in
evitable consequence of our unsound and extrava-
giant system of bank credits and inflated currency
With all the elements of national wealth in
abundance, our manufactures were suspended
our useful public and private enterprises were
arrested, and thousands of laborers were de-
prived of employment and reduced to want Uni
versal distress prevailed among the commercial
manufacturing, and mechanical classes This
revulson felt the more severely in the
United States, because similar causes had pro-
duced the like deplorable effects throughout the
commercial nations of Europe. All were expert
encing sad reverses at the same moment Our
manufacturers everywhere suffered severely, not
because of the recent reduction in the tariff of
duties on imports, but because there was no de-
mand at any price for their productions The
people obliged to restrict themselves in their
purchases to articles of prime necessity. In the
general prostration of business, the iron manu-
facturers in different States probably suffered
more than any other class, and much destitution
was the inevitable consequence among the
great number of workmen who had been en-
ployed in this useful branch OF our industry
There could be no supply where there was no
demand. To present an example, there could
ni6cent system of railroads, extending its bene-
fits to every portion of the Union, had been
brought to dead pause. The same consequences
have resulted from similar causes to many other
branches of useful manufactures. 1t is self-evi-
dent, that where there is no ability to purchase
manufactured articles, these cannot be sold, and
consequently must cease to be produced
No Government, and especially Govern
ment of such limited powers as that of the Uni
Stntz hax,z ~ 4
sion. The whole commercial world seemed for
years to have been rushing to this catastrophe
The same ruinous consequences would have fol-
lowed in the United States, whether the duties
upon foreign imports had remained as they were
under the tariff of 1916, or had been raised to
much higher standard. The tariff of 1851 had
no agency in the result The general causes ex-
listing 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 sys-
tenn 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 calamites. But this subject was treated
so much at large in my last annual message,
that shall not now pursue it further. Still,
respectfully renew the recommendation in favor
OF the passage of uniform bankrupt law, APP
plicable to banking institutions. This is all the
direct power over the subject which, believe, the
Federal Government possesses. Such law
would mitigate, though it might not prevent, the
evil. The instinct of self-preservation might
produce a wholesome restraint upon their bank
ing business, if they knew in advance that a
of specie payments would inevitably
produce their civil death.
But the effects of the revulsion are now slow
ly but surely passing away. The energy and