Newspaper of The New York Herald, December 9, 1857, Page 1

Newspaper of The New York Herald dated December 9, 1857 Page 1
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THE NEW' Y ORK HERALD. WHOLE NO. 7769. MORNING EDITION-WEDNESDAY, DECEMBER 9, 1857. PRICE TWO CENTS. XATIONAL AFFAIRS. THE PRESIDENT'S MESSAGE. fteport of the Secretary of the Treasury. AIIS&AOII OF THE ANNUAL REPORTS . OF THE tMretarle* ?f the Javy and War Depart MM>, Podaader General, and the General Land Office. OUR FOREIGN RELATIONS. lie Recent Kevulnion and the National Finances. THE KANSAS QUESTION. THE MORMON WAR. THE PACIFIC RAILROAD. Abrogation of the Clayton-Bnlwer Treaty, and Sore Decisive Measures against Spain Bee omm ended, Ac., Ac., tc. THE PHESEDENT S MESSAGE. FlUOW CmZXKP OK THS t*WWiT? XXV Hoi KB OF RKPIUBSXNTATIVlia ? a sbsdienoe to the command of the constitution , it has ww become my duty "to give to Congress information of fee state of tbe Union, and recommcnd to tbeir considers Hon such measure*" as I judge to be " necessary and ex pedient." But first, an! above all, our thanks are due to Almighty 8*d for tbe numerous benefits which he has be?towed ?pen this people; and our united prayer* ought to ascend la Him that He would continue to bless our great republic in time to come an Ho has bleised It in time past. Since Itie adjournment of tbe last Congress our constituents have enjoyed an unusual degreo of health. Tho north ha.s yielded her fruits abundantly, and has bountifully re warded the toil of the husbandman. Our great stapled have commanded high prices, aud, up till within a brief period, our manufacturing, mineral and mechanical oicu palioas have largely partaken of the general prosperity. We have possessed all the elomonts of material wealth in rich abundance, and yet, notwithstanding all thone ad van tagis, our country, in its monetary interests, is at the present moment in a deplorable condition. In the midst ef mnsurpasti.-d pleny in all the productions of agricul ture and in all the elements of national wealth, ws find ear manufactures suspended, our public works retarded, ?or private enterprises of different kinds abandoned, and thousand* of nxeftil loborers thrown out of employment and reduced to want. The revenuo of the government , whxh is ch.ofly derived from duties on imports from ?broad, bag been grnaily reduced, whiliit Uie appropr.a ttanx made by Oongre-i- at its last senston for the current IscaJ year are very large in amount. Coder U?eue circumstances a loan may be required he arc tbe close of your prevent getuuou, but this, although tsepty to be regretted ,? ould prove to be only a slight Biisfortunc when compared with the suffering and dwtrehs prevailing among the people. With ibis the government cannot fail deeply to Kympalhige, though It may be with ?Bt tbe power to extend relief. THS FWAJKUL URTUHJir. H m our duty to inquire what ha* produced such unfor tunate remit*. and whether their recurrence can be pro vested In all former revulsions tbr blame might have tarn fairly attributed to a variety of co operating cause*, tat not ho upon the present occasion. It la ap(<arent that ?or existing misfortunes have proceeded solely from our extravagant and vicious system of paper currency anil ta&k credit#, exciting the people to wild speculations ud gambling in stocks. These revulsions mu?t continue to racur at snccesMve intervals so k>ng as the amount of tta paper currency and bank loan* and discounts of the country rhall be left to the discretion of fourteen hundred Irresponsible (tanking institution*, which from the very law of their nature w ^ consult the interest of their stock holder* rather than the public welfare. The framem of the constitution, when they gave to Con grrM the power "to coin money and to regulate the value (hereof," and prohibited the states from Coining money, MMtLng bills of credit, or making anything but gold and lifter coin a tender in payment of debt*, supposed tJhcy tad protected the people against the evila of on excessive and irredeemable paper currwy. They are not rrspoa Bible for the existing anomaly that a gov srnment endowed with the eoveretgn attribute of coming money and r?gu feting the value thereof should have do power to prevent ?Ihers from dnv ing th? coin out of the country and tilling op the channel* of circulation with paper which doe* not represent gold and silver. It ? one of the highest and moat responsible duties of government to insure to the people a sound circulating mdram, the amount of which ought to he adapted with 1 the utmost possible wisdom aad skill to the wants of in ternal trade and foreign exchangee If Una be either greatly above or greatly below the proper standard, the Marketable value of every man's property in increase I or diminished in the same proportion, and injustice to Indi vtduals a* well an incalculable evils to the community are tta consequence Unfortunately . under the construction of the federal ?Destitution which has now prevailed too long to he ?tanged . this important and delicate duty has been dls ?evered from the coining power and virtually transferred to more than fourteen hundred ftate hank*, acting tnde pendent) y of each other, and regelating their paper it ?wen almost excltiei rely by a regard to the present tnte reet of their stockholder*. Exercising the sovereign power ?f providing a paper currency, instead of coin, (or the country, the first duty which these hanks owe to the pub lie is t* keep in their vaults a ?u(1lcient amount or gold and sliver to Insure the convertibility of their note- Into com at all time* and under all circumstances. No bank ought ever to be cliartercd without such restrictions on ta bustne** as to secure this result All other re*trir tlons are comparatively vain This is the only true touch stone, the only efficient regulator of a paper currency? the only oiw which can guard the public against over is sue* and t>ank susprnsloiis As a collateral and eventual security it is doubtless wise, and in all caw* ought to be required that banks shall bold an amount of I'niu-d States or *atc securities equal to th?ir not?s in circulation, and pledged for their redemption. This, however, fur nishe* no adequate security against over issue*. On the contrary, It may be perverted to inflate the currency. Indeed, it U possible by thi? means to convert all the debts of the I'ntted J?tatc* and i?tat e government* into bank notes, without reference to the specie required to redenm them However valuable these securities may be in |hem?elrea. they cannot he converted into gold and stiver at the moment of pressure, as our experience teaches, in ?nOV i'Til time to prevent bank ?uspen<ions and thedepre Cialtoa of hnnk notes. In Knglaiid, which is toaconsider able extent a paper money country, though vastly behind oar own in thts respect. It was deemed advisal Is. anterior to the act of Parliament of 1M4, whicn wisely separated the issue of notas from the buiklng department, for tta tank of England always to keep on hand gold and silver ?qua I to one third of its combined circulation and depot-its If this proportion was no more than suluctent Insecure the convertibility of Its note* with the whole of Ureal Itri tain , and to some extent tne continent of Europe , as a Held fbr its circulation, rendering it almost impossible that a midden and immediate run to a dangerous amount shouU be made upon it, the sam-- proportion would ? ertainly be toeumwrnt under our banking system Each of our fmir teen hundred hanks Was but a limited circumference for its circulation, and in the oour*e of a very few dsyi the *epo*ifa>r? and noteholders might demand from aucli a bank a sufficient amount of specie to ?otnnei It tn suspend, ereo although It had coin m its vaults equal tn one third of its immediate liabilities Aad yet 1 am not aware, with ths exception of the hanks | of l/misiana. that any mate bank throughout the Union has been required by Its charter to keep this or any othsr proportion of gold aad silver cisn pared with the amount of Ms combined circulation and depositee What ha* been the consequence P In a recent report made by the Treasu ry T>epartmnn* on the condition of the hanks through oat the dlferent Mates, according to returns dated near- | eat to January. I*ft7, the aggregate amount of actual ?pecie in their vaults is tfiS .Ufl.'i.tS. of th?lr circulation 9214 77*. *22 and of their depc^ite* g'iWUM .1f>2 Thn* ? appears that these bAaks in the aggregate have consid ?rabfy less than one dollar in seven of gold mod silvst Competed with their circulation and depo?lte*, Tt w*-? palpable, therefore, that the very flr?t pre?ure must drive them to su?penskn, and deprive the people of a ?rovcrtrblt curreney , with all tt? disastrous coDa?s|uctKoi . It is truly wonderful that they should hare so long con United to preserve Iheir credit, when a demand for the payment of one neve nth of their immediate liabilities would have driven them Into insolvency. And ttiiw in the condition of the banks, notwithstanding that four hundred millions of gold from California have tiowod in upon us within -the U?t eight years, and the tide still continues to flow. Indeed, such ha* been the extrava gance of bank credits that the banks now hold a consi derably less amount of specie, either in proportion to their capital or to their circulation or deposits combined, than they did before the liscovery of gold in California. Whilst in the year 1848 their specie tn proportion to their capital was more than equal to one dollar for four and a half, in 1857 it does not amount to one dollar for every six dollars and thirty-three cents ef their capital, in the year 1848 the specie was equal within a very email fraction to one dollar In Ave of their circulation and deposits, in 1867 it is notequal to one dollar in eevtsn and a liulf of their circulation and deposits. Krom this statement it is easy to account for our finan cial history for tho last forty years. It has t>?en a history of extravagant expansions in the business of the country, followed by ruinous contractions. At successive intervals the best and most enterprising men have been tempted to their ruinb> excessive bank loans of mere paper credit, ex citing them to extravagant importations of foreign goods, wild speculations, and ruinous and demoralizing stock gnm bling. When the crisis arrives, as arrive it must, the hanks can extend no relief to the people. In a vain struggle tore deem their liabilities in specie they are compelled to con tract their loans and their issues : and at last , In the hour of distress, when their assistance is most needed, they and their debtors together sink into insolvency. It Is this paper system of extravagant expansion, raising the nominal price of every arttelo far beyond its real value, when compared with tho ?*t of similar articles in countries whose circulation is wisely regulated, which has prevented us from competing in our own markets with foreign manufacturers, has produced extravagant impor tations, and has counteracted the effect of the large inci dental protection aftorded to our domestic, manufactures by the present revenue tariff Bbt for this thP branches or eur manufactures composed of raw materials, the pro duction of our own country ? such as cotton, Iron, and woollen fabrics ? would not only have acquired almost ex elusive [lossefsion of the home market but would have created for themselves a lorcign market throughout tho work!. Deplorable, however, as may be our present financial condition, we may yet indu'ge in bright hopes for the fu ture. No other nation has ever existed which could have endured such violent expansions and contractions of paper credits without lasting injury; yet the buoyancy of youth, the energies of our population, and the spirit which never quails before difficulties, will enable us soon to recover from our present financial embarrassment, and may oven cecai ion us speedily to forget the lesson wnich they have taught, A TKMPOHARY VaTIONjU tOAH. In the meantime It is the duty of the government, by all proper means within its power, to aid in alleviating the sufferings of the people occasioned by tho suspension of the banks, and to provide against the recurrence of the same calamity. 1'nfortunately, in either aspect of the case, it can do but little. Thanks to the Independent Treasury, the government has not suspended payment, as it was compelled to do by the failure of the banks in 1837. It will continue to discharge Its liabilities to the people in gold and s'lver. Its disbursements In coin will pass into circulation , and materially assist in restoring a sound cur rency. From Its Mgh credit, should we be compelled to make a temporary can be effected on advantageous terms. This, however, shall, if possible, be avoided; but If not, then the amount shall be limited to the lowest prac ticable gum. I have, therefore, determined that whilst no useful go vernment works already m progress shall be suspended, new works, not already commenced, will be postponed, if this can be done without injury to the country. Thoso necessary for its defence shall proceed as though there had been no crisis in our monetary affairs. But the federal government cannot do much to provide against a recurrence of existing evils. Even if insur mountable constitutional objections did not exist against | the creation of a national bank this would furnish no adequate preventive security. Tim history of the last Bank of the I'mted States abundantly proves the truth of this assertion. Such a bank could not, if It would, regu late the issues and credits of fourteen hundred State banks in such a manner as to prevent the ruinous expansions and contractions In our currency which attlictod tue coun try throughout the existence of the late bank, or securo us against future suspension" In 18'.' 5 an effort w is made by the I'ank of England to curtail the issues of the country banks under the most favorable circumstances. Tho paper currency had been expanded to a ruinous extent, and the bank put forth all its power to contract it. tn order to reduce prices and restore the equilibrium of the foreign exchanges It accordingly commenced a sys tem of curtailment or its loans and issues, in the vain hope that the Joint stock and private banks of the kingdom would be compelled to follow its example. It found, however, that as it contracted they expanded, and at the end of tin- process, to employ the language of a very high official authority, "whatever reduction of the paper cir culation was effected by the Bank of England (in 19'J6) was more than made up by the issues of the country banks.'' THE POWXR OF A Juno*!! STOCESTlOJfS TO TKK nun: Mm Rut a bank of the United St* Um would not. if it could, restrain (lie wapes and loans of tbe Slate bank*. because It* duty a? a regulator of the currency inuot often be in direct cooflict with th? Immediate Intercut of its stock holders. If we expect Mr agent to rmtrain or control an other their Interest* murt, at least in some decree, be antagonistic Bet tb" directors of a Hank of the ClM State* would feel the same interest and the same lnclina tioa with the director* of the state bank* to expand the current > , to accommodate their favorite* and fr'endx with lonr.s and to declare large dividend*. Such ba? been our experience in regard to the laet bank. After all. we must mainly rely upon the patriotism and wisdom of the State* lor the prevention and redrew of the evil. If they will afford u* a real specie baxia for our paper circulation by increasing tbe denomination of bank notes, flrst to twenty . and afterward* to fifty dollar*, If they will require that the bank* xliall at ail times keep on hand at lejw-t one dollar of gold and ? ilver for every three dollar* of their circulation and depositee. and it they will provide by a self executing enactment, which nothing can arrest, that tbe moment they suspend they *hall go into liquidation I b? he\e that nn h provisions. with a weekly publication Wf each bank if a statement of it? condition, would go far to secure u- against future suspensions of specie payments. IMOMI i aw rtm ttik n.?XK*. Congress, in my opinion, po**ese the power to pas* a uniform bankrupt law applicable to all banking limtitu lions throughout the Culled Slates, and I strongly recotn mend it* exercise. Tins would make it the irreversible organic law of each bank's existence, that a sus|?on?pr>n of specie payments ?ha1l produce it* civil death. Tte? in slmctof self preserrat ion would then compel it to per form its d title* in such a manner as to ??cji|h' the penalty and preserve ita life. The existence of bank* and the circulation of bank pe per are so identified with tbe habit* of our people, that they cann't atthisday be suddenly abolished mu:h imm< diet* injury to the country If wecould c nOne them to their appropriate ?pUere and prevent them from adin u istering to Uie spirit of wild and reckless ? peculation l?y extravagant loans and issues, they might be continued with advantage, to the public. But this I say. after long and much reflection if e*p*. rtence "hall prove it to be impossible to enjoy the f*. i|, tie" which well retaliated banks might afford, without at the same time sufl. ring the calamities which the excesses of the basks have hitherto InCx toil ujsmi tlie would then be far the lesser e\ ilto .leprivethcm altogeth er of the power to issue s paper currency and confine th< m to the functions of banks of deposite and discount Our relations with foreign government* are, upon the whole, in a satisfactory condition. The diplomatic difficulties which existed between the go vernment of the I*n ted *t*t.? and that of fSreal Britain at Um- ad journment of the |**t f?.ogr??s have b. ? n happily terminated by the ap|s>mtm< Dt of a Br *i?h Minister u> LUi-> country, who lias been cwrdially received Whilst it i* greatly to the interest, as I am nonvlnced it Is the sincere de- re, of the government* and people ot the two countries to be on terms of Intimate friendship each other, it has -n our misfortune almost always to have had some IrritaMig, If not dangerous, outstanding question with (ireat Britain. mrunrnt HI t mairr Pi nee the origin of the government we liar* been employ ed in negstisting trestles with that Power, and afterwards in discus- ing their true intent and meaning In th,? ret peel the convention of April IP 1HM>, commonly callod the Clayton and Bulwer 'r. ety, ha* been the most tinfor lunate of all. because the two government* place directly opposite and nisitradlctory ? (instruction* upon it* first anil most important arti< le Whilst in the 1'nited States we believed that this treaty would place both I'onrers upon an exact equality by the stipulation that neither w ill ever "<*? enpy, or fo'rlify, or colomre , or as-umc or exercise any dominion over, any part of Central Aaernt, It Is contended by the British government that the true construction 5f Him language hi left them in the rightful possession <4 all tliat portion of Central America which was m their norupancy at the date of tbe treaty; In Ifcct. that the treaty i* a virtual re cognition on the part of the 1'niteil States of the rfght of t. re'at Britain, either as owner or protector, to the whole extensive coast of Ccnt'al America sweeping round from the Rio Hondo to the [mrt and harbor of San Juan de Visa ragua. together wtth the adjacent Bay lslauils, ex??pt the comparatively small portion of this between the !*arstoon and (Tape Honduras. According to their construction, the treaty does no more tbau s mply prohibit tbetn from ex tending tlieir possesions in Centrsl America beyond the present limits It I* not too much to aMert, that if in the I'nited State* the treaty had been considered susceptible of such a construction, it never would have been negott ated under the authority of the President, nor would It have received the approbation of the Senate. Tbe univnr sal conviction in the I'nited States wrns, that when our Envernment consented to violate it* traditional and time onored policy, and to stipulate wit* a foreign government never to occujiy or a<*|nlre territory in the Central Ameri can portion of our own continent, the consideration for this sacrifice was that Ores! Britain should, in this respect st least . be placed in the same peeittoa with ourselves Whilst we have no right to louM the sincerity of ths Bri tteh government in their construction of Mi. treaty, it l? at the same time my deliberate nnavirtieii thai this nonstrm tion is in opposition both to its letter arid it* spirit, rss Ml Uf 1 1 ASdwnofr ntHrt. Cnder Ihe lute administrsiton negotiations were institut ed between the two government* for the purpose, If po* stble, of removing these difficulties; and ? treaty having thi? landible object in view was signed at I.oodoci on the I7th October IBM, and w a* submitted by the PresMtK of the Benate nnJfic following 10th of Urcember. Whether this treaty. ettlBfr in it* original or amended form, would have accomplished the object intended without giving birth to new and embarrassing complication* betwsw tbe two governments, may perhaps he well questioned 0?r lain It Is, however. It was rendered much less objectionable | hv the different amendment* made to it l>v the Senate Th? Iroat) , ae amended . was rat itled by mc on the 1 ftb lUrcb , 1867, and was transmitted to London for ratification by the British government. That government expressed its willingness to concur in all the amendment* made by tho Senate , with the single exception of the clause relating to Runtaii and the otlior inlands in the Bay of Hondurut. Th? articlc in the original treaty , a* submitted to tho Senate, after reciting that these inlands and their inhabitants "having been by a convention bearing date the 27th day of August, 185fl, between her Britannic Majesty and tho republic of Honduras, constituted and declared a free Ter ritory , under tho sovereignty of the said republic of Hon duras,'' stipulated that "the two contracting parties do hereby mutually engage to recognise and respect in all future timo tho independence and r'uhts of th* said l'r#o Territory as a part of the republic of Honduras." Upon an examination of this convention between Great Britain and Honduras, of tho 27th August, 1864, it was 1 found Uiat, whilst declaring the Bay Islands to bo "a free territory tinder the sovereignty of the republic of Hon durw," it deprived that republic of righta without which its sovereignty over them could Fcarsely be said to exiBt. It divided them from the remainder of Honduras, and gave to their inhabitants a separate governimjut of their own, with legislative, executive, and JudWlal officers, elected by themselves. It deprived tlie government of Honduras of the taxing power in every form, and ex empted the people of tho islands from tho performanno of military duty except for their own exclusive defence. It also prohibited that republic from erecting fortifica tions upon them Tor their protection ? thus leaving them open to invasion from any quarter; and, finally, It pro vided "that slavery shall not at any tunc hereafter bo permitted to exist therein." Had Honduras ratified this Convention, she would have ratified the establishment of a State substantially inde pendent within her own limits, and a State at alt timua subject to British influence and contrrl. Moreover, had ' the United States ratified the treaty with Great Britain in its original form, we should have been bound " to recog nise and respect in all future time" these stipulations to the prejudice of Honduras. Being in direct opposition to the spirit and mining of the Clayton and Bui wer treaty as understood in the I'nited States, the Senate rejected the entire clauso, and substituted In its stead a simple recognition of the sovereign right of Honduras to these islands, in the following language: ? The two contracting parties do hereby mutually engage to re cognise and respect the (slants of human. Monaco, I'tila, Bnrbaretta. Helena ard Moral, situate In the Bay of Hourturn*, an t oil the e*n of the republic ot Honduras as under the sovereignty and as pari of the said republic of Honduras. Great Britain rejected this amendment, assigning as the only reason that the ratifications of the^pnvention of the 27th August, 1H66, between her and Honduras, had not been " exchanged, owing to the hesitation of that govern ment." Had this been done, it is stated that "her Majesty's government would have had little difficulty in agreeing to the modification proposed by the Senate, which then would have had in e fleet die same signification as the original wording." Whether this would have been the efiect, whether the mere circumstance of the exchange or the ratifications of th* British convention with Honduras prior In point of time to tho ratification of our treaty with Great Bsitain would, "in effect," have had "the samo significa tion as the original wording," and thus have nullified the amendment of the Senate, may well be doubted. It is, perhaps, fortunate that the question has never arisen. The British government, immediately after rejecting the treaty as amended, proposed to enter into a new treaty with tho United State-, similar in all respects to tho treaty whirh they had just refused to ratify, if the United States would consent to add to the Senate's clear and unqualified recognition of tho sovereignty of Honduras over the Bay Islands the following conditional stipula tion Whenever and ft* soon as the republic of Honduras shall hive concluded and ritlflrd a treaty with Ureal liritaui, by which fJreat Britain shall have ceded, and the republic of Hondnraa shall have accepted, the said islands, subject to the provisions and conditions contained in such treaty. This proposition was, of course, rejected. After the Senate had refused to recognise the British convention with Honduras of the 27th August, 1860. with full know ledgi' of its contents, It was impossible for me, necessarily ignorant of ";he provisions and condition*" which might be contained in a future convention between the tuune parties, to sanction them in advance. .ABROGATION OK TtlK CLAYTON Bl'LWKR RKOOm K N I > H ' The fact is that when two nations like Great Britain and the United States, mutually desirous, as they are, nnd I trust ever may be, of maintaining the most friendly rela tions with each other, have unfortunately concluded a treaty which they understand in senses directly opismite, the wisest course is to abrogate such a treaty by mutual consent, and to commence anew. Had this been done promptly, all difficulties in Central America would most probably ere this have been adjusted to the satisfaction of both parties. Tho tim? spent in discussing the meaning of the Clayton and Bulwer treaty would have been devot ed to this praiseworthy purpose, and the task would havn been the more easily accomplished because the interest of the two countries m Central America is identical, being confined to securing safe transits over all the routes across the Isthmus. Tint ITMTUI AUKBICiN IH'KKTMV*. Whilst anterta'ning these sentiment*, I #hall, neverthe less, wot refuse lo contribute to any reasonable adjustment of the Central American question* which is not practically inconsistent with the American interpretation of the treaty. Overtures for thin purpose have been recently mule by the Prii ?h government, In a friendly spirit, which I cor dially re< iprocato. but whether this renewed eitort will re^ul in MWMH I am not yet prepared lo expreaa uu opinion. A brief period will determine. <>t"R KKI ATTOKH WITH ? Oltf MBit' "1AI [SWItrWmtlt. With France our ancient relation* of friendship (till con tmue to exist. The Frcnoh government have in several recent instance*. winch Dead not be enumerated, evinced a spirit of good will and kindness toward* oar country which 1 heartily reciprocate H is. not wit bounding, much to be regretted that two nation# whose production* are of such a charac ter aa to invite the most extensive exchan^.* and free*t commercial intercourse, should continue ta> en force ancient and obsolete restriction* of trade a^amxt each other, Our oommeroial treaty with France I* in Dim respect an exception from our treaties with all otter com mercial nation*. It Jc.i)ou*ly levies diecrim natm,? duties both on tonnage and on articles, the growth, produce, or manufacture of the one country, when arrh n* in vesacla belonging to the other. Mire than forty yearn ago, on the 3d of March, 1116, CVwgiet* paaaed an m l oitenng to all natioua U> admit tbcir vessels laden with their national productions into the port* of the I'nited -it*te? upon the same terms with our own vomcIs, pro vi. led they would reciprocate to u? similar advantages. Thin act confined the reciprocity to the productions of the respective foreign nations who might ? nter into the proposed arrangement with the t'mt ed States. The art of May 24. I*:#, removed Una res trie, t ->r, ind offered a similar reciprocity to all such vessels without reference to the origin of their cargoes. I'pon these principles our' commercial treaties and arrange m> nu have been founded, ex? ept with France, and let us hope that thia exception may not long exist. arwu. Our relation* with Ru#?i* remain, a* they have ever been, on the moot friendly footiag. The prwaent F.mi<* ror, a* well as hi* predecessors, have never failed, when the occasion offered, to manifest their good will to our eountrv , and their friendship has always t>een highly appre elated by the government and people of the I'nitad Sute* ot * nmrriiw with sr.ii* With all other European government*, exre|4 that of Spain. our relations are aa peaceful a* we could desire I regret to ?ay that no progress whatever ha* been made, (?ince the adjournment of Congress, towards Hie #?-Ule mentor any of the numerous claim* of our citltent against the Hpanisb government. Besides, the outrage committed on our flag by the Spani*h war frigate Ferro lana on the high sets, off the coast of Cuba, in March, 1*64. by ftrtng into the American mail steamer 13 Dora do. and detaining and searching her. remains unacknow ledged and unredressed The general tone and temper of the Sp*n ?h government toward* that of th? I'mt/>1 Kates are much to bo regretted Our pre*ent Envoy Rxtraordi nary and Minister I'lenlpotentiary to Madrid has aaknd to be recalled, and it I* my purpose to send out a new Mm > ifte- 14> Hpa.n. with special instructions on all questions pending between the two g?\ ernments, and with a deter mmation to have Uiem speedily and amicably adjusted. |f thi* be possible In the meantime, whencxer our Mm Ister urges the just claim* of our cttisen# or the notice of the Ppnnlsh government, he I* met with the objection that ton cress have never made the appropriation rw?m mended by President Polk in hi* annual message of lie cetnber, 1*47, "to be paid to the Hpnulsb government for the pur)iO*e of distribution among the claimant* in the Anuctad < a*e.'' A similar recommendation was made by my immediate predecessor in hi* message of December, 1*6.1 and entirely concurring with both m the opinion that this indemnity i* Justly due under the treaty with ?'pain of the U7th October. I7W1, 1 earnrgMy recommend such an appropriation to the favorable cotuidtrilin ot Cotigrrmi TKKATV wmt r*n#u. A treaty of friendship and cettimcri* was concluded at Constantinople on the 13th liecember, 1*M, between the t'nitcd Mates and Persia, the ratifb atlon* of which were exchanged at Constantinople on the 13tli June, 1*67, and tba treaty was proclaimed by the President on the 1 *th August. I *67 This treaty . it la believed, will prove be neflcial to Ameri< an commerce. The fliali lias manifest, ed an earnest disposition lo cultivate friendly relation* with our country . and ba* exprersed a strong wish that we ahould be represented at ttiheran by a minister pleni potentiary, and 1 reoummcod that an appropriation be made for thia purpo?e. OT* tun innw wm? cwiv* Recent occurrence* la China have been unfavorable to a revision of the treaty with that empire of the 3d July, 1S44, with a view to the security and etlenelon of our commerce. The twenty ftiurth article of thi* treaty stipu lated for a revision of It, In case experience should prove this to be requisite, " hi which cane the two Government# will, at the expiration of twelve years from the date of said convention . treat amicably concerning the samo, by m< sns of suitable person* appointed to conduct such nego liatiflns." "nieee twelve years expired on the 3d of July, 1#;><T but long before that period it waa ascertained that important change* In the treaty were necessary, and se veral fruitless attempt* w ere made by tbe Commissioner of the United htate* to effect these changes Another of fort was about u> be made for the same purpose by our tVwnmissi' % In conjunction with wMbtthe Minister* of Fngland an<^rrvM'e, but this was sn*|*nded by the oc curence of hostllRie* In the Canton river between Great Britain and the dhtneae empire Theac hostilities haw aeceesarily interrupted the trade of all nations with Ou ' Inn. which I* now In a state of blockade, and tm' occa sinned a serious li?s of life and property Meanwhile the naurrectioo wtfhta the empire against the existing itnpe. ris#lyns*ty still continues, and it is difficult to anticipate what will be the result Cnder these circumstance*, I havp deemed N advisable to appoint a distinguished cltirnn of rniinsylvanla envoy extraordinary aad minister plenipotentiary to proceed to (litna, and to avail himself ot any opportunities which may offcr to efbet changna ID the exlstlat treatir fkt-ora ble ta Amor'caii commerce. He left the t iiit> d Mib * for the p'ace of his destination in July 'a*t, m the war steamer Minnesota. ministers U> China have al*-< been ap pointed try the government* of (treat Britain and France Whilst our out m< r baa baea instructed to occupy k ncitral position is reference to the < xi?tlng hosuhuon at Cajiton, he will cordially co operate with the British an ! French ministers m all pewiful meagre* to snare by treaty stipnUtions those Just ooncessHns to commerce which the nations of the world have a right to expect, and which China cannot long bo permitted U> withhold. From ascuruu' ?e r?v<'iv<*d, I euteitain no doubt that the three minister* will act is Harmonious concert to obtain similar commeielal treaties for each of the Powers they represent. nK?/Tt. *\D *KW lilUNADi. * Wo cannot Tail to feel a deep Interest in all that con corns the weliare of the independent republics on our own continent, an well ax of the empire nt Brazil. Our difficulties with New tlrunada, which a short timo since bore so threatening an aspect, are, it m to bo hoped, 1 in a fhir train of settlement in a manner Just and henora- I ble to both parties. TliK IHTMft'S KOTOW. The isthmus of Central America, including that of Pana ma, hi the great hallway between the At Uuith'. and Pacific, over which a large portion of the commerce of the world i i8 destined to pass. The I'mted States aro moro denply ! interested than any other nation in preserving tho free- j dom and security ol all tho communications across this ! isthmus It in our duty, therefore, to take care that they | shall not be interrupted either by invasions from our own country or by war* between tho independent States of | Central America. Under our treaty with New Uranada of the 12th December, 1844>, we are bound to guaranty

the neutrality of the isthmus of Panama, through which the Panama railroad passes, "as well as the rights of sovereignty and property which New Granada has and possesses over tie said territory." This obligation is founded upon equivalents granted by the treaty to the government and people of the United States. Cnder these circumstances 1 recommend to Congress the passage of an act authorizing tho President, in cage of necessity, to employ the land and naval forces of tho 1'nited States to carry into effccl this guarantee of neutra lity and protection. I also recommend similar legislation lor the security or any other mMMMi tho Isthmus in which we may acquire an interest by treaty. With tho independent republics on this continent it is both our duty and our interest to cultivate die most friendly relations. We can never fael indifferent to their fate, and must always rejoice in their prosperity. L'nfor tunately, both for them and for us, our example and ad vice have lost much of their influence in consequence of the lawless expeditions which have been fitted out, against some of tlicm within the limits of our country. Nothing is better calculated to reUrd our steady material progress, or impair our character as a nation, than tho toleration of such enterprises in violation of tho law of nations. THK niJBfSTKRINO KXPKl>mOVS. i Tt is one of the first and highest duties of any independ ent State, in IM relations with the members of the great fnmily rn nations, to restrain its people from acts of hos tile aggression against their citizens or subjects. The most eminent writers on public law do not hesitate to de nounce such hostile acts as robbery and murder. Weak and feeble Stales, like those of Central America, may not feel themselves ablb to assort, and vindicate their rights. The case would fee far different if expeditions were set on foot within our own territories to make private war against a powerful nation. If such expeditions were fitted out from abroad against any portion of our own country, to burn down our cities, murder and plunder our people, and usurp our government, we should call any Power on earth to the strictest account for not preventing such enormities. Kver since tho administration of General Washington acts ol Congress have been in force to puninh severely the crime of setting on foot a military expedition within the limits of the I'nlted to proceed from thence against a nation or State with whom we are at peace. The pre sent neutrality act of April 20, 1818, is but little more than a collection ?l pre-existing laws. Under this act I lie Pre sident is empowered to employ the land and naval forces and the militia "for the purpose of preventing the carry ing on of any such expedition or enterprise I rom the tor rttories aud jurisdiction of the United Status," and the col lectors of customs are authorized and required to detain any vessel in port when there ig reason to believe she is about to take part in such lawless enterprises. When it wan fir?t rendered probable that an attempt would be made to get up ano'her unlawful expedition against Nicaragua, the Secretary ol State issued instruc tions to the marshals and district attorneys, which were directed by the Secretaries of War and the Navy to the appropriate army and navy ? Ulcers, requiring tlietn to be vigilant, and hi use their best exe rtions in carrying into eflect the provision* ol the act ol 1H18. Notwithstanding these precaut ions, the expedition ha* escaped from our shores. Such enterprises can do no possible good to the country , but have already inflicted much injury both on its interest- and Its character They have prevented peaoefol emigration from the United States to the States of Central America, which could not fail to' prove highly beneficial to all the |>artieM concerned In n pocimUry point of view alone, our citizens have sustained heuvy losses from the seizure ami closing of the transit route by the Son Juan between the two oceans Tho leader of the recent expedition was arrested at New Orleans, but was discharged on giving bail for hot appearance in tho lusuMcieut sum of two thousand dollar -i 1 comuiend the whole subject to the serious attention of Congress, believlrg that our duty and our interest, as well as our actional character, require that wo should adopt such measures as will be effe? tual in restraining our citizens from committing such outrage* hit. rRKArv with rvaaoraY ? o?Tisramn* to aa doukobd. I regret to inform jrou that the President of Paraguay has reiused to ratify Qie treaty between the United Slates and that State as amended by the Senate, the signature of which was mentioned is the message of my predecessor to Congress at the opening of its set-sum in December, 1862. The reorons assigued for this refusal will appear in the correspondence hf rswith submitted It being d - table to ascertain the Illness of the river la Plata and its tributaries for navigation by -team , the ( nited stairs steamer Water Witch was sent thither for that ptirpiwe in l*i3. Tins enterprise was successfully carried on until February, 1856, when, whilst in the peace ful prosecution o ( her voyage up the Parana river, Uie steamer wa* (lied u|?m by a Par.iguayau fort. The Ore was returned, but as the Water Witch was of small force, and not designed for offensive operation*, she retired from the conflitt The pretext upon winch the attack was made was a decree of the President of Paraguay of (fcto her, la64, prohibiting foreign vessels of war from navi gating the r n er> ol that State Ax Paraguay, however, was the owner of but one liank of the river of that name, the other belonging to Corrtentes, a State of the Argentine Confederation, the right of its government to expect that such a decree would be obeyed cannot be ac knowledged. But the Water Wttcb *m not, properly speaking, a vessel of war. She was a small steamer en gaged In a icleatifk enterprise intended for the advantage of commercial States generally. Under Iheso circum stances, I am constrained t*> consider the attack ujton her as unjustifiable, and as calling for satisfaction from the I'm iia> mi K?v>nnirol Citizens ol the I mted HtaW-s, also, who were *?tablisbed In business in Paraguay, have had their property ? 1? <1 and taken from them, and haw hIIhtww l*>eii ItmN by the authorities hi mi insulting aiid arbitrary MWr, whirl) requires redress A demand for there purposes will be made in ? Arm hut conciliatory spirit Thi? will the more probably be grant ?d If the eiemtlve shall hav< authority to uae other mean* in the event uf a refusal. Thin is accordingly re cunuaeiithd. rw* hawms urmtnns. It M unnecrf ir)f to state in detail the alarming condi lion of Ibe Territory of Kaaea* ?t Ihe tin* of my inaugu ration. Tb-> oppoe rg parties th?n ?tood in ho*tile array each othf r, anil any ari ident might have relighted the names of rirtl war. Besides, at this critical moment Kaaaaa waa left without a Governor, by the resignation of Gov. Geary. tm the l?th of February previous. the Territorial Irgis latnre had parsed a law providing for the election of del* gatea on the third Monday of June to a convention to meet on the (rut Monday of September, for the purpc-o of (ram Irg a constitution preparatory to admission into the Cnloo. This law wan in the main fhir and Just . an I It I* to be re gretted that all the (|ualiOed ehit<?* had not registered them?elvr* and ?eted under its prov Isiofi" At the time of the election tor delegate*, an extensive rrgaai?t in existed ib the Territory, whoec avowed object it km. if need be. to put down the lawful government by force, and to establish a government of their own under th?> so railed T^-pelta constitution TTie per?on>- attiched to this rewiutwuary organ matliin abstained from taking any part la the election. The art of th* Territorial legislature had omitted to pro ride for submit! inn to the people the csHistituliou which might be framed by the Ormv>n?on and m the ei< it-d Male of public feeling throughout Kansas an apprehension extensively prevailed that a design existed to forre upon tlx m a constitution In relation to slavery agalnM their will. In thin emergency K became mv duty, as it wiw my unquestionable right, having in view the union of alt rood ritirrnr In support or the Territor al law*, to eiprrm an pptnx n on the true construction of the provisions . mcern ing slavery contained In the organic art <4 Obngre * of the 90th May, 1*64 Congress declared tt to be '? the true In tent and meaning of this act not to legislate ?laverv into ?ny Territory or Wate, nor to rrrlude t therefrom hut to leave the people thereof perfectly free to ft*rm and regu late their domestic Institutions In tn?ir own way l"n?er It, " when admitted an a '?tat'-," was to " re reived into the I'nlon, with or without slavery, a* their i onstitntiofi may pre*rrtbe at the time of their admission ' 1'id Congress mean bi this language that the delegate* elected f> frame a ron'titution should have authority final ly to decide the que?tion of slavery, or did they intend, by leaving It to the people, that the people of Kansas themselves should deride thm question by a dir?ect vote* im this subject I ronfevs 1 had never entertained a serious doubt, and therefore, in my Instructions to Governor Walker of the Mth March last, I merely said that wtvrn " a constitution shall be submitted to the people of the Territory, they mtwt be protected in the e*<*rci*e of their right of voting for or agatnst that instrument, and the fair expression of the popular will must not be interrupted by fraud or violence." In expressing this opinion it was far from my intention to interfere with the Me decision of the people of Kan?ao, either for or against slavery, from this I have always rar< fully abstained. Entrusted with the duty of tnking "care that the laws be faithfully executed,'' my only Je. aire wm that the people of Kansas should furnish to ? <jn trnm the evKlrr.ce required by the organic act, whether r<* or against slavery, aad In this manner smooth their p.wagc ?to the Inion In emerging from the condition of Territorial dependence into thai of a sovereign State, it ?s? their duty, in tfly opinion, to make known their will by the votes of the major'ty, on the dlreet question whe fher this important domestic institution should or ahonid not continue to ciist Indeed, this was the only possible mode m which their will could be authentically aerer tamed. _ The election of delegates to a Omventini must necessa rily take place In ?eparal< districts Trom this cause tt may readily happen, as has often been the caee , that a majority of the people of a Mate or Territory are on one s'de of a quew'ion, whilst a majority of the repr?sentj? tlves ftetn the several rftstrtets into which it divided n ay be up?>n the other side. This arses from the fact that in some districts delegate* may be elected by small m*>i>r ite/, *L let in others thoee of different iclubmli^ may receive major^jes sufflcu ntly great not only io over come th? votes given for the former, but to leitve a large majority of the w hole p>-ople in direct opposition to a ma lority of the delegate. B? shies, our history proven that influences may be bronght to bear on the representative sufficiently powerful to induce htm to disregard tho will of his constituents. The truth #, that no other authentic and satistactery mode exists of hmNMM MM JwiH ol' a majority of the people ul any State or Territory on an itn portant and exciting question like that of slavary in Kan naff, except by leaving it hi a direct vote. How wine, then was it for Congress to pass over all subordinate and intermediate agencies, and proceed directly to the source of all legitimate power under our institutions! How vain would any other principle prove in practice, Thin may he illustrated by the case of Kansas Should she be admitted into the f'nion, with a constitution eittier maintaining or abolishing slavery, against the sentiment of the people, this could have no other effect than to con tinue ami to exasperate the exuting agitation during the brief period required to make the constitution conform to the irresistible will of the majority. The friends and supporters of tae Nebraska and Kansas act , when struggling on a recent occasion to Hustain its wise provisions before the great tribunal of the American people, never differed about its true meaning on this huIi jeet. Everywhere throughout the Union Uioy publicly pledged their faith and their honor that they would cheer fully Ittbait the question of slavery to tho decision of tho fcfln a fidr people of Kansas, without any restriction or qua lification whatever. All were cordially united upon the great doctrine of popular sovereignty, which is the vital principle of our free institutions. Had it been insinuated from any quarter that it would be a suUlcieut compliance w ith the requisitions of the organic law for the members of a convention, thereafter to be elected, to withhold the question of slavery from the people, and to subititute their own will for that of a legally ascertained majority of all their constituents, this would have been instantly reject ed. Everywhere they remained true to tho resolution adopted on a celebrated occasion recognizing "tho right of the people of all tho Territories ? including Kansas and Nebraska? acting thrmigb the legally and fairly ex pressed will of a majority of actual residents, and when ever the number of their inhabitants justifies it, to form a constitution, with or without slavery, and be admitted into the Union upou terms of perfect equality with the other States. " The Convention to frame a constitution for Kansas met on the flrst Monday of September last. They were callud together by virtue of an act of the Territorial liegislature, whose lawful existence had been recognized by Congress in different forms and by different enactments. A largo proportion of the citizens of Kansas did not think proper to register their names and to vote at the election for delegates; hut an opportunity to do this having been fairly afforded, their refusal to avail themselves of their right could m no manner affect the legality of tho Convention. This convention proceeded to frame a constitution for Kansaf . and finally adjourned on the 7th day af Novem ber. But little difficulty occurred In the convention, ex cept on the subject of slavery. The truth is that the (?MPtl provisions of our recent State constitutions are so similar? and, 1 may add, so excellent ? that the diffe rence between them ifl not essential. Under the earlier practice of the government, no constitution framed by the convention of a Territory preparatory to its admission into the Union as a State had been submitted to the peo ple. 1 trust, however, the example ?et hy the last Con gregs, requiring that the constitution of Minnesota "should be subject to the approval and ratification of the people of the proposed State,'' may be followed on future occasions. I took It for granfed that the convention of Kansas would act in accordance with this example, found ed as it is, on correct principles , and hence my lnstruc tions to Governor Walker, in favor of submitting the con stltutionto the people were expressed in general aud un qualified terms. In tlie Kansas Nebraska act. however, this requirement, as applicable to the whole constitution, had not been in serted, and the convention were not bound by its terms to submit any otlier portion of the instrument to an elec tion. except ihat which relates to the "domestic institu tion" of slavery. This will be rendered clear by a simple reference to it- language. It was "not t- > legislate slavery into any Territory or State, nor to exclude it therefrom, but to leave the people thereof perfectly free to form and regulate their domestic institutions in their own way " According to the plain construction Of the sentence, tho words "domestic institutions" have a direct as they have an appropriate reference to slavery. "Domestic tnstltu tions ' are limited to the family. The relation hot won master and slave and a few others are "domestic institu tions.'' and are entirely distinct from institutions of a p<> litical character. Besides, there was no que.- tion then he fore Congress, nor indeed hts there since been any se rious question before the people of Kansas or the country, except that which relates to the "domestic institution" of slavery. The t'onvention, after an angrv and excited debate, finally determined, by a mujority of only two, to submit the question of slavery to the people, though at the lift fortv three of the fitly delegates present affixed their sig natures to the constitution. A large majority of the Convention were in favor of establishing shivery in Kansas. They accordingly In serted an article in the constitution for this purpose simi lar in form to those which had been adopted by otlier Territorial conventions In the schedule, however, pro viding for th? transition from a TVrritorial to a state go vernment, the question has been fairly and explicitly re ferred b> the peo|>le, whether they will have a constitu tion " with or without slavery." It declares that, before Mie constitution adopf d by the Convention " shall be sent to Congress for admission into the Union as a State," an election shall be held to decide this qu> stion, at which all the white male inhabitants of the Territory above the ago of tl are entitled to vote. They are to vote hy ballot ; and " the ballots cast at said election shall lie endorsed -constitution with slavery,' and 'constitution with no slavery.'" If there he a majority in favor of the "con stitution with slavery," then it is to be transmitted to t'oiigress by the President of the Convention in its original form. If. on the contrary, there shall jie a majority in favor of the "constitution with no slavery," " then the article pro \ ul uik for slavery x ball be xtrieken from the constitution by the President of this Gonventsm ,' and It is expr?ssty declared that " no slavery shall exist in the State of Kalian, except that the right of property in slaves ? now in the Territory atiall in no mann r be interfen I with," and in that event it is made his duty to have Mio constitution thus ratified transmitted to the Chmgres.q of the United Stat' s for the admission of the State mio the Imon. At this election every citiren wtll have *n opportunity of cxprPMiiiiK his opinion bv 111* vote "whether Kutisit* shall t>p received InUi tin* I'nion with or without slavery," and tbua tbia exciting queaUoo may lie peacefully ?<*lt l<-t in thr very mode required by the organic law. Tin elcc Hon will I* held under legitimate authority, aud if any portlm of the inhabitant* shall retuse t/j vote. a fair op nortmiity to do so hav ing been presented, thin will tn? Iheir own voluntary art. and tbry alone will be res|K>nsi blc lor the consequence*. Whrttn r Kanna* shail he a free or a ? I ? v ? State mu?l evtntually. under MM authority, lw by an election. and thr question ran never be more r|p.?rly or distinctly presented to thr people than tt is at the present moment Should this o^mrtuinty be rejeetod , ?h? may br Involved for years in domestic discord. und pn?sihly in civil war, before she ran again mak>- up the uwuc now no fortunately tonde red, and again p a< li the point ilie liv alrrady attained Han-ai ban lor iome yearn ocrupird too much of the public attention. It i? high lure tin* ?ItouM be dire. tod to tar more important objert* When oot <- admitted into thr I'nion. whrtbrr with or without alavrry, the r*. ite nsent bexnnd her own limit- will spee.tiiy pa** away, aud she will then for the Orel tune lie left, a* <be ouglit to havr hern long Rinre, to manage her own affkirs in her own way. If her constitution on the anbjnct nf ulavery . or on any other subjrrt, be dlsplrnmng to a majority of the people, no human power < an prevent them from thanking it with'n a brief period t'ndcr tin circum ?taci e . t n ay writ be qurvtionrd wh thrr thr j.< a> .m I o'.irt of the whole country are not i.( ^real. i m|?i,un. .? thai. thr mere temporary triumph of either of the politi cal partes In Kansa*. Should lli* court tution Without slavery be adopted by thr vote* of thr majority, thr rights ot pro|x<rtv in ?lav.-< now in the Territory are rrs?n e?t The num'?- r of tb ??? i? vrry -mall but it it were grrutrt the provision w >ul I be equally Ju?t und reasonable The?e ?l?rr* were brought into the Territory under the < on-?t tution of the I'nlted Htat<-?, an.1 are now the | ropeiiy of their m?-ter*. Thi? point has at length been tlnally derated by tie- laie e?t iudk lal tribunal of the country? ?ad tin* upou Un p'ain principle that when a confederacy ot sovereign Mats* acquire a new trrrttory at their t>unt e*p< n*e. both emaltty and Jwtice demand thatth" niium* ot one and all Of -hall have the rjM to take uto K WkdM ever i? r?H <* nired as property by the common ron-titi lion To have summarily roefli<i?t<- 1 th<- property in slave alretuly tn the Territory , would have been an * t <?f gro-s mjnrt'fe, and eontrary to the prartire of thr oMer state of the I'nion whtrh have abolished alavr) tT*n nteaininv? mi- imn*ov w?r A territorial gov?rnnn-nt waa e^uhliiihed tor Utah by .? t o|( ingreaa atiprovrd the fth o| J*>j>t<-mber and the i oni"t ;tiitK>n and law* of the i'nlted MaU* were there by extended over it ' to far aa the same, or any prove th< rrof. may he applicable " Tin" act |>eiv|iW Iht the appointment l>y the Pre?ident by xnd w tli th- .1 vice and ron>rnt of the fenate, of a ttovcrmir who wa* to be e* iiflkio Superintendent of Indian AtDw'-s a aerre tary , three .lud|r> or thr .Xitprrme Court, a WHhal and a I?Htrtct Attorney . Subsequent acte provtd?-d for the ap l~"iiliu< nt of the ofllcer* tie. e??ary to extend our land ami our Indian system over thr territory Br if ham Younf was aptnlnted the flr?t governor on the *JOth Sept , 1*M>, and ha? held th? oBee ever 'Ines Wli let Oover nor Young has hern both Governor and !*u|>erintond*tit ot Indian Affairs throughout thm perioil, be hanbeen at the ?=ann' t me the head ot thr rhurrh railed the letter liny fa i ta and profceses to govern t^a memberw and dwp??? ? ; ? t v i'v lireit napiral ?n and authority (Vom the Alni ghty His power liaa been, therefore, ahaolu t? over l-oth fburch and State. The people of I'tah almost escluatveljr belong to thia rhnrcb, and believing Witti a fatiatiral spirit that he w raor M tile Terr t-ry by dune aptsnntmeM, they o?>ry h s eimm ill ae if they were direct revelations from Hrarrn If, therefore, he chose* tba' hie (fo . ernmrnt shall r4>tnr into colJieton with the govrrnment of the I'm ted .Blate? , the member* of the Mormon rbiireh will yield ?mplielt obedtence to hi* will, rnfortunatolv. ex.'*tin? f.ict.- leave hut little doubt that surb m hx determinat Withoat entering upon a minute history of oreurrenre*. it i? svW- ient to say that all the ofllrer* of the I'mtril Watra, Judicial and executive wtth the "ingle exception of two Indum agrnt><.have f<m?d tt nereasary ft>r their rwn personal salety to withdraw from th< TVrr tory, and there no longer remains any givernmrnt in 1't.ih but the despotwm of Rrigham Young Thi? being the condition of affair" in the Territory, I could not mistake the path of duty As chief executive magistrate, I was bound to restore the ?uprenia< v M the con*titutK>n and law? within Ith limit* In order to effect thi* pHrpoee, I appointed ? new tJovernor ami .-ther fe.ter-ii oWrer" fcr I 'ah an t s. nt with them a military force for tlwir prote* t?on, and to ?>d ae a turn as cotmtaiv id caee ot seed, in the execution ot the HMk With tlx- religious opinions of the Mormon*, as ^5 if they remained mere opinions, however *' themselves and revolting to the moral and religious: W un?-nt* of nil Christendom, I had no right In interfere^ Actions alone, *ben in violation of the constitution ana laws of the I'miod HtaW.K, become the legitimate subjocta for the Jurisdiction of the civil magistrate My instruc lions to Governor Cunimmg have therefore been framed in *trirt accordance with these principles. At th*tr dato a hope wan indulged that no necessity might oxwt for cm plovlng tin- military >u restoring mid maintaining tlm authority of th.- law, but thi- h?(>e ha* now vankhe.1 C.ov Young lias . by proclamation, declared his detormi nation to maintain bin power by force, and has already committed wl* of b<wtillty against the United StjAW. Unless he should retrace bin step-, tli? Territory of HUb will be in ft otat- of open rebellion He has remitted these act* or open h<?tiMy . not* ithstaDding MaJ Van Vllet, an ofTlwer of the army, ?ent to I'tah by the commanding <MMieral to purchiuM* i?rovi?H'iw for ir?w?p? ? uad given him the Htrongost insurance* of the peaceful intention* of the government, and that the troops would only be em ployed a* a potsr romitaliu when called on by the civil an tbortty to aid in the execution of the lawn. Then* is no reason to boliov** that (?ov. Young hAH ion? conteq.platcd tbm result. He knows that the contmuWlC* of hi* de-i?>ti<- p?wer depend* upon the exclusion of all settlers from the Territory except thnao who will ac^ knowledge his divine mission, and implicitly obey h,i8 will and that an enlightened public opinion there would soon prostrate institution;! at war with the lawn botn or liodaud man. He ha* therefore for several yearn, in order to maintain his Independence, been industriously employed in collecting uud fabricating anna and mun. tions of war, and In disciplining the Mormons for mni larv service. As superintendent of Indian afbiim, he baa had an opiK.rtunity of tampering with the Indian tribes, and eiciting their he tile feelings aga nrt the United States This, according to our information, he has ac complished in regard to some or the tribes, while others have remained true to their allegiance, and have commu nicated his IntrlgUftf) to our ag.nt* He h*. laid >o a store of provisions tor three years, which, In case of ne pesnlty, as he Informed Major Van Vliet, he will con&eaJ. "gnd then take to the mountains, and bid detlancc to all the powers of the government. " A great part of all thin may be idle boasting, hut yet no wise government will lightly intimate the WtortH whk h may bo by ??n'h phr^niiH*! fanatn'wuift exists among the Mormons in I'tah This is the (Irst re bellion which hap existed in our Territories , and human itv itself requires that we should put it down in ouch a manner tbatit shall be the last To trifle with it would b? to encourage it and to render it formidable, we ought to go there with such an imposing fore* aa to convince these deluded people that resistance would be vain, and thus siiare the elision of blood. Wo can in this manner best convince them that we are their friends, not their enemies. In order to accomplish this object It will be oecessary according to the estimate of the War Depart ment to rals?' four additional regiment* ; and this I earnest 1 ly recommend to Congress At the present moment of depression in the revenues of the country 1 am sorry v* be obliged to recommend such a measure, but I feel eon | fldent of the supis?rt of Congress, cost what it may , in suppressing the insurre. ti?n and in restoring and main taining the sovereignty of the constitution and lawn a the Territory of Utah. m? TTRRTTOHV OP ARIJIOMA. I recommend to Coogress the establishment of a T?rr. ! tonal government over Ariiona, incorporating with it such portions of New Mexico as th. y may deem expedient 1 need scarcely adduce arguments in support of this re commendation- We are bound to protect the lives and the property of our citizens Inhabiting Arizona, and these are now without any efficient protection Their present number is already considerable, and is rapidly mcrea*. mi' notwithstanding the disadvantages under which they labor Besides, the proposed Territory is believed to be neb in mineral and agricultural re?c*iroe*i ^pscjally n f ilver and copper. The mails of the I nitod >tatos to <kli ft it nia are now carried over it throughout K* whole extent, and this route is known to ho the nearest, and believed to be the bent, to the Pacific. tiik l-ACinc luu.uoAn. I/mg experience has deeply convinced me a strjct construction or the powers granted to Congress is tho eiily true, as well as the only sate, theory or the yinslitu tion Whilst this principle shall gui le my public con duct I consider it dear that under th. war making power Congress may appropriate money for the construction of a military rosd through the territories of th? I nite?I Mates, when this is absolutely necessary Tor the defence or any or the States against foreign Invasion. Tbe con stltutlon has conferred upon Congress [s'W -r "to loclaro war' "to raise and support armies," "to provide ant maintain * navy," and to call f'-rth the militia to "repel invasions " These high sovereign power* ne< essartly in volve lmi?ortant and responsible public duties, and amoug tlieni there ?< none so sacred and so imperative an i that or un nerving our soil from the invasion of a fore go enemy The const l tut ion ha.-1 tli"r"tnre l-ft nothing on tbix point U> < on?ti u? ti"ii. but expressly re<ri.r<- t -a' ?? the t inted States -.hall protect e*cb of th?m (the - 1 against invasion " Now , If a military r<?d over o ir own territories be Indispensably ne.e-.-ary to enubln us ui meet and repel the invader, it follow* as a tM-e.svary ocBscqucnce not only tliat we posses* the power but it m our imperative duty to cotwtruct such a road It would he an absurdity to invest a government with tbe unlaii it. d poser to make ai d conduct war. and at the som i time deny to it the mill nieiiiis of reaching and .legating the enemy at the frontier. Without such a road it it quite ovider.t we cannot "protect" California and our raclflc |s?iscB*ions "against invaeion." We canto* hy anv other mean? tr*n?|sirt men and munitions of war from the AJIxntic Sta'es in Miiffl. ient tune sue. -tsfully . to defend there remote and d is tint portion* oT the re public. . . . . .. Kxperience has proved thai the routes across the Istb mus or Central America are at best but a very uncertain and unreliable m.ste of communvat, on B?it e4r?>ii ir tb t were not the case, they would at once !?? . !<wed agxm~t us In the event oT war with a naval power so much stronger than our own a* to enable It to blockade the porta at either end of there r<sito* After all. therefore, we cjm only rely U|?.n a military road thrrMigh our own Terrtto rie* and ever *ince the origin or the government < ?>ngre?ii ha- i>een in the prsctk-e oT ?|>propriatin? money from th? public Trex-ury for the construction of such roads The dtfliculties and the expense of constructing a mlli Ury railroad to connect our Atlaatic and far 1 4c. State* have been greatly . taggerale 1. The distance on tha Arirona route near the :r;.1 parallel or north latitude, b. twr. n the western Itoundaty of Texas on the Rki Onin-l * and the eastern boundary of California on the Colorado, from the best exploration* new within our knowUdg", ilW's not exceed Tour hundred and seventy miles, and th?? tace of the couDtry Is, in the uiam, ravora*)le Kor obvi ous reasons the government ought not to undertake th? work iteeir by means oT its own agents. Thi* ought to be committed to other agencies, which Congress might assist either by grants or land or money, or by b<ith, upon sneh term* and rood it ions a* they may deem most bene ft. tal ror the country Provision might thus bs mado not only r?r the safe, rapid and i-i-.tuotnical Uansporta Hon of tn?"l*? and munltasis of war, but also of the jsib lie mall* The commercial interests of ibe wbols coun try both K*?t arid West, would be greatly promoMd by f.ich a road, and above all it wonld be a fowerfoi ad dltioaal bind of union And alth > a<l vantages of tn? kind, wlwtbcr pot tal. commercial or t*>iitical, caaaot ooo Ter rMisbtulHSoil |?>w?r, yet Uiey may furnish auailiary argument* tn favor of expediting a work which, in my nidgment, ta clearly embraced within th? war making povir. Kor th?*e rwm I fnmiwn'l to the friendly oc*tder? tlon (if < 'onfrre#* the aubjcct ol the I'm iflc railroad, witW-t anally committing myaelf to any particular rout*. TH* F1**W or THM t??l>EK?r*t'rr. The report of the >V< retary of th* Treaeury will fur nt*h a detailed statement of the condition of the public II nance* and of tin* re-peetive branch** of t*e public "?r rtcr devolved upon that department of the government By th.* report it ap|? art that thr amount of revenue re ceived fr< m all . oun < ? into 'U tr a. ury during the ftmal year ending th' .TOth, 1*?7, wae -<?ty eight million m* hundred and II . ? t> 1 1 ? th'-anl Ove hundred and thirteen dollat ui' >.i> 'Mil ? etit- (KM All. 613 67.) wh?h .ui.. ?mil mil iln ??<?!?< ? ?? of ninete. n m lion nine hundred and one Unhand three hnu-l r ? I ind twoMjr lv dollar- and torty Ave cento, (f 10 901 .? .TJA 45.) remaining In tf?< ? treasury at the rominen< ein?*,t of Ibr year. made an aggregate Tor th* aervlce of the yea r of eighty eight million live hundred and thirty two tbua ?and eight hupdred an<l thirty ntnv dollar* and twelve canto, ($s* MU.RT.O 12 ) The public eapendituri** for the fiscal year ending 30?h Jnne. 1*67 amounted to eeventv million f ight hundred ar.d twenty two thowand *even hundred and twenty fbnr dollar? and n?Mj live cento, ($70. *7^,724 *6,) of which live niiHH'ii hundred and forty throe thou*and eight hundred and ninety aix dollar* and ninety one rent* <t6.044.*!fl #1) were applied to th' redemption of the puh. lie itcbt, inclndtng intereat and premium, leaving in tlm treasury at the ?* mtnencement of the proaent Sacal rea r on the l?t July, 1*67, seventeen million woven hundred and ten thousand one hundred and fourteen dollar* and t?i nty reien cento. ($17,710,114 27.) Thereceipt* mlo the treasury for the flr*t quarter of Uia promt Hull year, torn men. ng lat July, 111*7. w era twenty Hi'llion nine hundred and twenty nine thousand eight hundred and nineteen dollar* mid el(fhty on ? cent* (??.?0,*?i??,*tl> M) , and the eat, mate I rrceijt" of the re maining three quarter* to tb' .KHb .lime, 1*66, are thirty ci* million m-ven hundred and Bily thmmand dollar* l$:M. 76u,OOOi, making with the balance before *tated ail aggregate of acventy live million three hundred Mid eighty nine thou. and mne hundred and thirty f<mr dollar* and eight centi (|7 ft. :*?<?. i;i4 <#;. for the aerrtco of the preaent ftacal year The actual expenditure* dur ng the tnl quarter of tfca pre?ent Ik* *1 were twetty three million ?even hun dred and ftwrU u tb- u*. nd live hundred and twenty eigbl dollar* and Ibirlv peven cent*. tl.M.714.52H S*,) of which three million eight hundred an I ninety litre thousand two hundred and tlur* two dollart and thirty nine centa ($8^M 23U .'iv ) aere applied lo the redemption of tba public bf mi tuding intere?i and premium The prnixbic e*|? n inures of the n manung three ouar. ter* lo Otli .fuiie, IMS. are tlfly oa<- millien* two bun dr?i and forty e jiht thou?an ' lire hundred and thirty dni'ar* and fonr rcati ($61 ,U4??.i.W 04), including inter rat on the puhla debt, troking an agaregate ofaeventy foiir yf! i'*!- 'one hundred and *i*ty threw thoueani fifty .^frit dmLir* and forty one cento i't74.9K3.0M 41), leaving an estimated balance in th< tre??ury at U>? cloeo or the |>n ?eni ft*? at year of four hundred and twenty aix tbooxand eight hundred and xtvrnty Qto dollaaa and fctty eren cento. iM^.*75 ?7 ) tbe amount of the puMIr debt al the mmeniement of the preaenl 0?. al year w.t* twi nly nine nnHram aitty tbnnrand three hnndred and eighty all litllara and ninety cento. (ta?,000,tt6 90 ) The am"Ufil redeemiil <'nee the l?t of July tn threa million night hundred and uinely flv? tkou*and two hun dred and thirty two dollar* and thirty nltie cento ($3 *<*,. 828 3P)? leaving a balance unredeemed at thm tim? of twenty Ave mill'iim one hundr. d and *i*ty Ave thouaand one hundred and fifty fottr dollnr* ami flfly one cwi 1 ?v5 154 61.) i*at ? or v.vr** uri .n?w*m>?n Tbe aavniit est uwt i expenditure* for tb< reau>n sf