Evening star. [volume] (Washington, D.C.) 1854-1972, 1858-12-04

iue W our minister TO procure their mai adjustment
On the "a OF June last Congress passed Joint resou-
ton authorizing the President adopt such measures
ana use such force in his Judgment may be necessary
ana advisable or the purpose of adjusting the differ
ehces between the United States and the republic of Para
quay III connection with the attack on the United States
steamer Water Witch and with other measures referred
10 In his annual message And on the 18th July fol-
lowing, they made appropriation to defray the ex-
penses and compensation of commissioner to that
public, should the President deem proper 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
amlca0le and peaceful manner if this be practicable His
experience and discretion justify the hope that he may
prove successful in convincing the Paraguayan govern
men 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 Uni
ted States and indemnify injured citizens whom they
have forciby despoed of their property.
Shonld our commissioner prove unsuccessful, after
sincere and earnest effort to accomplish the object of his
mission then alternative will remain but the empoy
nent OF force To obtain lust satisfaction from Para
quay In view of this contingency the Secretary of the
Navy under my direction has fitted out and DESPATCHED
naval force, To rendezvous BuenOs Ayres which
II Is believed will prove sufficient for the OCCASION 1t is
my earnest desire however that it may not lie found
necessary TO resort to this last alternative
When Congress met in December last the business of
the country had just been crushed by of those peri
oCl reyulsOns which the inevitable CONSEQUENCE of
unsOund and extravagant system of bank credits and
Inflated currency. With all the elements of national
wealth in abundance manufactures were suspended
our useful public and private enterprises arrested
ana thousands OF labOrers deprived of empoymen
and reduced to want Universal distress prevailed among
the commercial, manufacturing, and mechanical classes
ms revuson was fet the more severely i'm the United
states because similar causes had produced the like de-
nioraOle ELECTS throughout the commercial nations of
Europe. All experiencing sad reyerses at the same
moment Our manufacturers everywhere suffered severe
~ not because OF the recent reduction in the tariff Of u
Ties on imports but because there demand at
any price Tor their productions The people were obliged
to restrict themselves in their purchases to articles of
prime necessity In the general prostitution business the
iron manufacturers IN different States probably suffered
more imam any other Class and much restitution was the
ihe'tpie consequence among the great number of work
men who had been employed in this useful branch of
our industry There could be supply where there was
no dehlahd 10 present an example, there could be no
demand Tor railroad iron after magnificent system of
railroads. extending its benefits to portion of the
Union had been brought to dead pause The same con-
sequences have resulted om similar causes to msny
other branches of useful manufactures 1t is sefev-
dent that where there is ability purchase manufa
ured articles, these cannot be sold and consequently
must cease to be produced.
No government and especially government of such
limited powers as that of the United States could have
prevented the late reyulson. The whole commercial
world seemed for to have been rushing to this ca
taStTophe The same ruinOus consequences would have
followed in the United States whether the duties upon
foreign imports had remained they were under the
II
ard The tariff of 1851 had no agency in the result
The general causes existing throughout the world could
not have been controlled by the legislation of any par
ticular country.
The periodical revulsiOns which have existed in our
past history must continue to 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 he expected at least for
many years TO come that the commercial nations of Eu-
rope, with whose interests are SO materially in
voyed, will expose themselves to similar calamities But
this subject treated much at large in NV last
annual message that shall now pursue it further
Stl respectfully renew the recommendation in favor of
the passage of uniform bankrupt law applicable to bank
Ing institutions. This is all 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
wholesome restraint upon their banking business if they
knew In advance, that suspension specie payments.
would inevitably produce their civil death
But the effects OF the revulsion slowly but
surely passing away The energy enterprise OF our
citizens, with unbounded resources, WILL within
period OF another year. restore state of wholesome
dusty and trade. Capital has again accumulated in our
large cities The rate Of interest very low Con-
hdence is gradually revng and so soon as il dscoy
cred that this capital be proaby employed in COM
mercia and manufacturing enterprises and in the con-
structon OF railroads and other works of public and pr
waite Improvement, prosperity will again smile throughout
the land 1t il vain however TO disguise the fact from
ourselves, that speculative imitation of our currency
without corresponding initiation in other countries
"ioSC CoHlc with
must ever produce disastrous results domestic man.
uactureS No tariff, short of absolute prohibition can
prevent these evil consequences
In connexon with this subject it proper to refer to
our financial condition. The Causes which have
produced pecunary distress throughout the country have
SO reduced the amount of imports from foreign countries
that the revenue has proved inadequate the neces
say expenses OF the government TO supply the decien
cy Congress- by the act of the 23d of December 1851
authorized the issue of $50 900 of treasury notes
aud this proving inadequate they authorized by the act
OF June 18th, 1898 loan vi $50 900 600 Ito be applied
10 the payment vi appropriations made by law
NO statesman would advise that we should 20 on in.
cresnS the national debt to the ordinary expenses
oil the government This would be most ruinoIs poll
cy In case o war credit must Le chief resource
at least Tor the first year. and this would be greatly i'm
paired by having contracted Il large debt in time OF
peace IL Is our true policy To increase revenue so as
to equal our expenditures 1t would be runous to con-
tinue to borrow Besides it may be proper to observe
that the incidental protection thus afforded by revenue
tariff, would at the present moment some extent in
crease the confidence of the manufacturing interests and
give iresh impulse To revivng business To this
surely, no person will object
In regard to the mode of assessing and collecting tu-
ties under strictly revenue tariff, have long enter
tanned and often expressed the opinion, that sound pol
hey requires tis should be done by specific duties in
cases To which these can be properly applied They are
well adapted To commodities which usually sold by
weight or 10y measure and which, from their nature are
OF equal or OF nearly equal value Such for example are
q iroro of cloa