Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1858-12-16

ioint resolution authorizing the President "to
adopt such measures and 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 connexion with the attack on the
United States steamer Water Witch. and VIII
Other measures referred to" in his annual mes
sage. And on the 18th July following. ihey
made an appropriation to defIay the exPehses
and compensation of commissioner 10 tnai re-
nnhI;c sbonId the President deem it proper to
make such an appointment.
In compliance with these enactments, L have
.nno;nted a commissioner, who has proceeded
to Paraguay, with full powers and instructions
90 seftIe these differences u an amicable and
,,e,.,efuI manner, if this be practicable. His ex
per;ence and discretion justify the hope, that
he may prove successful in convincing the Pa
raguayan government, that it is due both to hon
or and Justice that they should voluntarily and
promptly make atonenient 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 commissioners prove unsuccessful,
after sincere and earnest effort, to accomplish
the object of his mission. then no alternative
will remain, but the employment of force to OBJ
tain lust satisfaction" from Paraguay. In view
of this contingency, the Secretary of the Navy.
under my direction, has fitted out and despatch
ed a naval force, to rendezvous near Buenos
Ayres. which, it is believed, will prove snfti-
cient 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
business of the country had Just been crushed,
by one of those periodical revulsions, which are
tie inevitable consequence of our unsound and
extrayagant system of bank credits and inflated
.*l~ @l. IL Il
wealth in abundance, our manufactures were
suspended, our useful public and private enter
prises were arrested, and thousands of laborers
were deprived femplyment reduced TO want.
Universal distress prevailed among the CONNER
cial, manufacturing, and mechanical classes
This revplsion was 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 expe-
riencing 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-
Inand at any price for their productions. The
people 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 suf
Tered more than any other class. and much des-
titution was the inevitable consequence, among
the great number of workmen who had been
employed in this useful branch of our industry.
There could be no supply where there was no
demand. To present an exampl.. there could
be no demand for railroad iron, after our mag
nifcent system OF railroads, extending its ben
efts to every portion of the Union, had been
brought TO adead pause. The same consequent
ces have resulted from similar causes to many
other branches of useful manufactures. 1t is
self-evident that where there is no ability to
purchase manufactured articles, these cannot be
sold, and consequently must cease to be pro-
duced.
No government, and especially government
of such limited powers as that of the United
States. could have prevented the late revulsiOn.
The whole commercial world seemed for years
to have been rushing to this catastrophe. The
same rulnous consequences would have followed
in the United States, whether the duties upon
foreign imports had remained as they were un-
der the tariff of 1916, or had been raised TO a
much higher standard. The tariff of 1857 had
no agency in the result. The general causes
existing throughout the world, could not have
been controlled by the Legislation ofany particu
lar country.
The periodical revulsions which have existed
in our past history, must continue TO return at
intervals, so long as our present unbound sys-
tenn of bank credits shall prevail. They will,
ture; 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 them
selves to similar calamities. 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 a uniform bankrupt
law, applicable to banking institutions. This
is all the power over the subject which, be-
lieve, the federal government possesses. Such
a law would mitigate, though it might not pre-
vent the evil. The instinct of self-preservation
might produce wholesome restraint upon their
banking business, if they knew In advance, that
asuspension of specie payments would inevita-
bly, produce their civil death.
But the effects of the revulsion are now slow
ly but surely passing away. The energy and
enterprise of our citizens, with our unbounded
resources, will, within the period Of another
year restore a state of wholesome industry end
trade. Capital has again accumulated in cur
large cities. The rate of interest is there very
low. Confidence is gradually reviving. and so
soon as it is discovered that this capital can be
,profitably employed in commercial aud manu-
featuring enterprises, and in the construction OF
railroads and other works of public and private
improvement, prosperity will again smile
throughout the land. 1t is vain, however TO
diguise the fact from ourselves, that specula-
tive initiation of our currency, without cores
ponding imitation in other cou ntries whose man.
ufactures come into competition with our own,
must ever produce disastrous results to our do
mestlc manufactures. No tariff. short of abso-
lutte prohibition, can prevent these evil conse
quenccs.
In connexion with this subject, il is proper to
refer to our financial condition. The ssme eau
ub hava Aic4r
throughout the country, have 50 reduced the
amount of imports from foreign countries. that
the revenue has proved inadequate to meet the
necessary expenses of the government. To sup
ply the deficiency, Congress, by the act of 23d
Of December, 1857, authorized the issue of $780,
100000 of treasury notes; and this proving in
adequate, they authorized, by the act of June
14th, 1858, a loan of 600, "to be applied
to the payment of appropriations made by law"
No statesman would advise, that We should
go on Increasing the national debt to meet the
ordinary expenses of the government. This
would be a most ruinous policy. In case of
war, our credit must be our chief resource, at
least for the first year, and this would be great
ly impaired by having contracted large deb.
in time of peace. 1t is our true policy, to in
crease our revenue so as to equal our expen-
ditures. 1t would be ruinous 20 continue TO
borrow. Besides, it may be proper TO observe,
tnat bne lBcloeHtal prOtectlon. mus aHOrued Dy
revenue tariff, would at the present moment,
to some extent, increase the confidence of the
manufacturing interests, and give fresh impulse
to our reving business. To this, surely, no per-
son viii object.
In regard to the mode of assessing and col
1ecting duties under strictly revenue tariff l
have long entertained and often expressed the
opinion. that sound policy requires this should
be done by specific duties. in cases to which
these can be properly applied. They are well
adapted to commodities which are usually sold
by weight or by measure, and which, from
their nature, are of equal or of nearly equal
vilue. Such, for example, are the articles Of
iron Of different classes, raw sugar and fi,reien