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} _ __ ? rv samNlLwMhelt6n !Pi?Priet?rs- An Independent Journal: For the Promotion of the Political, Social, Agricutural and Commercial Interests of the South. j lewis m. geist, polisher. [ VOL. 2. YOIIKVTJLLE, 8. C., TH.1AH8DAY, JANUABY IP, 185G. KO. 2. |)olititaL PRESIBENT'SjdESSAGfc, fiJloic-citizcns of tin S'iiatr awl of the Jfousc of JZcpre*cn tat lees: Tlio Constitution of the United States provides that Congress shall assemble annually on the first Monday of December, and it has been usual for the President to make no communication of a publie character to the Senate and I House of Representatives until advised of j their readiness to receive it. I have deferred j to this usage until the close of the first month j of the session, but my convictions of duty will not permit me longer to postpone the discharge of the obligation enjoined by the Constitution ! upon the President, "to give to the Congress information of the state of the I'uion, and ^ recommend to their consideration such measf ures as shall be judged necessary and expedient." It is a matter of congratulation that the Republic is tranquilly advancing in a career of prosperity and peace. Foreign Relations.?Central America.?"Whilst relations of amity continue to exist between the United States and all foreign powers, with some of them grave questions are depending, which may require the considK oration of Congress. Of such questions, the most important is that which has arisen out of the negotiations with Orcat Britain in reference to Central America. By the convention concluded bctweeu the two governments on the 10th of April, 1850, both parties covenanted, that "neither will ever occupy, or fortify, or colonize, or assume, or exercise any dominion over Nicaragua, Costa Rica, the Musquito coast, or any part of Central America.'' It was the undoubted understanding of the United .States in making,this treaty, that aU the present States of the former republic ot Central America, and the entire territory of each, would thenceforth enjoy complete independence, and that both contracting parties engaged equally, and to the same extent, for the present and for the future; that if either then had any claim of right in Central America, such claim, audall occupation or authority under it, were unreservedly relinquished by the stipulation of the convention; and that no dominion was thereafter to be exercised or assumed in any part of Central America, by Croat Britain or the United States. The government consented to restrictions in regard to a regiou of country, wherein we had specif- I ic and peculiar interests, only upon the conviction that the like restrictions were in the same same sense obligatory on Great Britain. But for this understanding of the force and effect of the convention, it would never have been concluded by us. So clear was this unJcr.-tanding 011 the part of the United States, that, in correspondence contemporaneous with the ratification of the convention, it was distinctly expressed, that the mutual covenants of 11011 occupation were not intended to apply to the British establishment at the Bali/.c.? This qualification is to be ascribed to the fact, that, in virtue of successive treaties with pre< ? a -? i? A. V10US sovereigns 01 tile country, vueai dhuiu had obtained a concession of the right to cut mahogany or dye-woods at the Bulizc, but with positive exclusion of all domain or sovereignty ; and thus it confirms the natural construction and understood import of the treaty as to all the rest of the region to which the stipulations applied. It, however, became apparent, at an early day after entering upon the discharge of my present functions, that Great Britain still continued in the exercise or assertion of large authority in all that portion of Central America commonly called the Mosquito coast, and covering the entire length of the State of Nicaragua, and part of Costa Rica; tha* she regarded the Bulizc as her absolute domain, and was gradually extending its limits at the expense of the State of Honduras; and that she had formally colonized a considerable iusular group known as the Bay Islands, | and belonging, of right to that State. All these acts or pretensions of Great Britain, being contrary to the rights of the States of Central America, and to the manifest tenor of her stipulations with the Cnitod States, as understood by this government, have been made the subject of negotiation through the American Minister in London. I transmit herewith the instructions l,> him on the subject, and the correspondence between him and the British Secretary for Foreign Affairs, by which you will perceive that the two governments differ widely and irreeoncileably as to the construction of the convention, and its effect on their respective relations to Central America. * Great Britain so construes the convention as to maintain unchanged all her previous protoiwiftne nviT tlie Mnsnuito coast, and in dif fereut parts of Central America. These pretensions. as to the Musquito coast, are founded on the assumption of political relations between Croat llritain and the remnant of a tribe of Indians on that coast, entered into at a time when the whole country was a clonial possession of Spain. It cannot be successfully controverted, that, by the public law of Kuropc and America, no possible act of -noli indiaiis or their predecessors could confer on Croat liritain any political lights. Croat Hritain does not allonge the assent < (' Spain as the origin of her claims on the 31 o-(juito coast. She has, on the contrary, by repeated and successive treaties, renounced and relinquished all pretensions of her own, and 1 i recognized theM'ull and sovereign rights of 1 Spain in the most unequivocal terms. Vet these pretciisious, so without solid foundation in the beginning, and thus repeatedly adjured, were at a recent period, revived by Croat Jiritain against the Central American Stales, the legitimate successor- to all the ancient jurisdiction of Spain iu that region. They were first applied only to ad tiued part of the coast of Nicaragua, afterwards to the whole of itAtlantic coast, and lastly to a [?art of the coast af Costa itiea , and they arc now rc-asscrtcd to this extent, notwithstanding engagements to the United States. On the eastern coast of Nicaragua and Cos. ta liica; the interference of Great I3ritaiu, . j though exerted at one time in the form of ; I military occupation of the port of Han Junt I del Xorte, then in the peaceful plosion ol the appropriate authorities of the Central A< j nierican .States, is now presented by her a.s the | rightful exercise of a protectorship over th< Mosquito tribe of Indians. But the establishment at the Balizc, now j reaching far beyond its treaty limits into the I State of Honduras, and that of the Bay Islands, appertaining of right to the same .State, arc as distinctly colonial governments as those of Jamaica or Canada, and therefore contrary to the very letter as well as the spirit of the convention with the United States, as it was at the time of ratification, and now is, understood by this Government. The interpretation which the British goveminent, thus in assertion and act, persists in ascribing to the convention, entirely changeits character. While it holds us to all obliga firms if iii <i rn-onf measure releases Great Bl'i tain from those which constituted the couside ration of this government for entering intc convention. It is impossible, in iuy judgment for the United States to acquiesce in such : construction of the respective relations of tin two govormncnts to Central America. To a renewed call by this government upoi ' Great Britain, to abide by, and carry into ef I feet, the stipulations of the convention aecor. ! ding to its obvious import, by withdrawing 1 from the possession or colonization of portion; of the Central American States of Honduras Nicaragua and Costa llica, the British Govern nicnt has at length replied, affirming that tin operation of the treaty is prospective only, am did not require Great Britain to abandon 01 contract any possessions held by her in Centra America at the date of its conclusion. This reply substitutes a partial issue, in tin place of the general one presented by the Uni ted States. The British Government passe; J over the question of the right of Great Britain j real or supposed, in Central America, and as I sumes that she had such rights at the date o j the treaty, ami that those rightscomprehcmlec the protectorship of the Mos<juito Indians, th< extended jurisdiction and limits of the 1 Julize ' and the colony of the I>av Islands, and there j upon proceeds by implication to infer that, i the stipulations of the treaty be merely futun j in effect, Great Britain may still continue t< , hold the contested portions of Central America The United States cannot admit either the inference or the premises. We steadily deny thai at the date of the treaty, (.Ireat Britain had am ! possession there,other than the limited and pc euliar establishment at the Belize, and main tain that, if she had any, they were surrender ed by the convention. This government, recognizing the obligation: of the treaty, has of course desired to see ii j executed in good faith by both parties, audit I thouiscmsi'tii, therefore, has not looked to right: i which we might assort, independently of tin I treaty, in consideration of our gcograpical po sition and of other circumstances, which create ' forus relations to the Central American States i different from those of any government of Eu VuFThe. British Government, in its last commu J mention, although well knowing the views o ' the United States, still declares that it sees in : reason why a conciliatory spirit may not cnabh j the two Governments to overcome all obstacle; to a satisfactory adjustment of the subject. I Assured of the correctness of the construe : tion of the treaty constantly adhered to by thi: | Government, and resolved toinsistou the righ : of the United States, yet actuated also by thi I saute desire, which is avowed by the Britisl J Government, to remove all causes of serioui i misunderstanding between two nations associa ' ted by so many ties of interest and kindred, i ; has appeared to nie proper not to consider ai I amicable solution of the controversy hopeless There is, however, reason to apprehend that with Croat Britain in the actual occupation o the disputed territories, and the treaty there ! fore practically null, so far as regards our rights ! this international diiflculty cannot lung remaii ! undetermined, without involving in seriuu: | danger the friendly relations, which it is tin interest as well as the duty of both countrie to cherish and preserve. It will afford me sin cere gratification, if future efforts shall tvsul in the success, anticipated heretofore with mon j confidence than the aspect of the ease permit, me now to entertain. 1U:cki n .mknt.?One other subject of dis cussiou between the United States and lirea Britain has grown out of the attempt, vhicl the exigencies of the war in which she is en j gaged with ilussia induced her tu make, t< j draw recruits from the I'nitcd States. It is the traditional and settled policy of tin , l nitcd Suites to maintain impartial m ntralip i during the wais, which fro?n time to timcoceu 'among the great powers of tho world. I'er | forming all the duties of neutrality toward - tin re.speelive belligerent States, we may rcasona My exp'-et them in?t to interfere with our law . l'ul enjoyment oi' its benefits. Notwithstaiul ing the existence of such hostilities, our eiti /.ens retain the individual right io continue al their accustomed pursuits, by land or by .sea at home or abroad, subject only to such rcstric ! tioiis in this relation, as the laws of war, tin usage of nations, or special treaties, may im pose ; and it is our sovereign right that ou territory and jurisdiction shall not h invade by either lit' tlsc belligerent parlies, for tin transit of their armies, the operations of thei j llect-, tin? levy of troops. fbr their service, tin ' litting out of cruisers hy or against either, u J any other act of incident war. Ami these tin deniable rights of neutrality, imlividttal am | national, the I. mu d Slates will under no eir cumstaiices surrender. In put.-UaUCC of this policy, tin- laws of lli l ulled States do not forbid their citizens I sell to either of the belligerent powers article i contraband of war, or to take munitions o war or soldiers on board their private ships lb transportation ; and although, in so d oiig, tli individual citizen exposes hi- property or per .- in to some ui the hazards ul war, his acts d< not involve any breach oi' national neutrality I nor ppf themselves iinplieate the government j'1 hits, during the progress if the present wa ; in Kurope, (pur citizens have, without nutioiia j responsibility tin:refer, sold gunpowder ant i, anus to all buyers, regardless of the destinni ' tion of those unifies. < )ur merchantmen haw f i been, sum!still continue to ho, largely employed by (Iroat Britain and by France, in transport: ing troops, provision and munitions of war b s i the principal scat of military operations, and in bringing home their sick and wounded solr dicrs : but such use of our mercantile marine ! is not interdicted either by the international. - or by our municipal lav/, and therefore dues , not conipromit our neutral relations with Jlus 11 sia. ' I Hut our municipal law, in accordance witl 11 the law of nations, peremptorily forbids, noi ; only foreigners, hut our citizens, to fit out .. within the limits of the United .States, a vessel | to commit hostilities against any .State with . j which the United .States arc at peace, or to in i i crease the force of any foreign armed vessel ? intended for such hostilities against a Friendly -1 State. . j Whatever concern may have been felt b\ . | either of the belligerent powers lest private \ armed cruisers, or other vessels, in the service , I of one, might be fitted out in the ports of thi i j country to depredate on the property of tin ; J other, all such fears have proved tu be utterlj groundless. Our citizens have been withheh i from any such act or purpose by good faith - and by respect for the law. While the laws of the Union are thus pet r emptory in their prohibition of the cijuipnicm i or armament of belligerent cruisers in our port: , i they provide not less absolutely that no persoi . | shall, within the terrilc-y orjurisdiction ol'tlu j i United States, enlist or enter himself, or hirt I i or retain another person to enlist or enter him r I self, or to go beyond the limits or jurisdictioi i ! of the United Males with intent to be enlistee ! or entered, in the service of any foreign Stat< i either as a soldier, or as a marine or seamen 01 - board of any vcssel-of-war, letter of marque < or privateer. And these enactments arc ab< t in strict conformity with the law of nations . which declares, that no State has the right U f raise fojr land or sea service in another Stati 1 without its consent, and that, whether I'urbiddei > j by the municipal law or uot, tlie very attemp , | to do it. without such consent, is an attack 01 . I the national sovercignt}*. f Such being the public rights and the muni ; cipal law of the United States, no solicitude 01 ) the subject was entertained by this governmcn . i when, a your since, tlic British l'arliainent pas . sedan act to provide tor the enlistment of for t eigncrs in the military service of Great Brit , j aim Nothing on the face of the act, or in it . j public history, indicated that the British guv . j eminent proposed to attempt recruitment ii . the United States, nor did it over give intima I lion of such intention to this government. 1 < i was matter of surprise, therefore, to find, sub l soquently, that the engagement of person i wilhinlhc United States to proceed to Halifax s ; in the British provinces oi Xovn Scotia, am there enlist in the service of Great Britain, wa; . going on extensively, with little or no disguise ?; Ordinary legal steps were immediately takoi , , to arrest and punish parties concerned, and si . ! put an end to act--infringing the municipal lav | and derogatory to our sovereignty. .Beanwliih - j suiia.'de representations on tne subject wcr* f i addressed to the British government. 3 Thereupon it became known, by the admis 3 sion of the British government itself, that tie s attempt ! ' draw recruits from this country orig ! iuated with it, or at least had its approval am _ | sanction; but it also appeared that thepublii g; agents engaged in it had "stringent instate t (tions" not to violate the municipal law of tin ^ I c uiicu ciaies. t j It is difficult to uuderstand how it shouh . j have been supposed that troops could he raisei ; here by <1 roat Hritain, without violation of thi j! municipal law. The unmistakable object u j j the law was to prevent every such act, which i 1 performed, must he either in violation of tin . law, or in studied evasion of it; and, in eithe ?'' alternative, the act done would be alike inju _ j riuits to the sovereignly of the United States } I in the meantime, the matter acquired addi i j tional importance, by the rceruitiiTents in th . United Stales not being discontinued, and tin j j disclosure of the fact that they were pros ecu < ted upon a systematic plan devised by ofliciu . I authority; that recruiting rendezvous had Ltd t! opened in our principal cities, and depots lb ; the reception ut recruits established on on s frontier; and the wlmle business conuuctcc I under the supervision and by the regular co operation of 1 Jriti.-h officers, civil and military . i sonic in the North American provinces, a n some in the United States. Tim complicity o lln?se oilieers in an undcitakinjr, which couh : only be accoiup!i.-I:ed by defying our laws tlirowiuersuspieionovcrour attitude of ncutrali ! ly. and disregarding our territorial rights, i t. (. (inclusively proved by tlic evidence elicited oi '.| liic trial of such of their agents as Iiave beei j apprehended and convicted. Soine of the of li.cis 11 <its implicated are ot Lmh ofticial posi _ i tioii. and many of them beyond our jurisdiction. .1 that ! proceedings could not read _ ; tiic source ut uus uil.se niei. . | The*. coii-id. rations, ruul t!ie fact, that tin ! 1 cause of complaint wa* not .! Merc casual oc , 1 c'lrrenco. hut it deliberate design, euteivl up . mi witti full knowledge of our laws and nation [> ;il policy, and conducted by responsible publi . functionaries, impelled ?ue to pre cut the cas ) 1 ( ? the British (ioveriisueist, in order to .secure 1 : not only a cessation of tin: wrong, hut its re e : paration. The object is still under diseitssiuii r ! the result of which will he communicated h [ Volt in due time. i '' | 1 repeat the reeuinuieiHli.tioii : uhiuitted P -1 the last Congress, that provision ho made fo I the sippoininient of a commissioner, in eonnec - lion with <!re;.t Britain, to survey and estah | ii-ii tin! boundary line whieli divides the Tei r. ritoiy of Washington IVuui the continuous Jhit is!i pi -sessions, iiy reason of the extent am s ! importance of the country in dispute, there ha f, b'vit imminent danger ol collision between tin r subjects of (ireal ilrilaiu and the cilitems u ei the t Hited States, including their respectiv - j authorities in that ijuarter. The pro-pectu 0 it speedy arrangement 2ns contributed hithert ? j to induce on both i.ks forbearance to asser . ' by force wliat <.aeh claims as a right. (.'out in u r auee of deiay on the parted the tv.'o govern 1 iiients to act in the mutter wiil increase tin .1 dangers and difficulties of the controversy. ! Misundcrstnudiiu; cxi.st.-; as to tin; extent, ! character ami value of 11:e possessory rights of I ; the 1 ludson's Hay Company, and the property iofthe l'ujret's Jiuund Aprieultural Company, i. reserved in our treaty with Croat Kritain relaI | tive to the Territory of Oreiron. 1 have rea j son to believe that a cession of the rights of !! both companies to the 1 nitcil Slates, which . j would be the readiest means of tormiiuitinjrall : | ijucstioos, can he obtained on reasonable terms; ' and, with a view to this end, J present the subject to the attention of Congress. l i The colony of Newfoundland having enactt od l lie laws required by the treaty of the 5th ? 1 I .1 ? , ' ni .innr, l v.H. is r.n'v ; on uic same tooti ' 1 # I ing, in respect to commercial intercourse with i i the I uited States, as the other British North ; American provinces. I j The commission which that treaty contem 1 plated for determining the rights of fishery in i rivers and mouths of rivers on the coasts of the ; I United States and the British North Atueri? can provinces, has been organized, and has i j eoiumcnccd its labors, to complete which there < is nceth d further appropriations for the ser ! vice of another season. ' rr'oi'nj) Dirjis.?In pursuance of the aulhoriI, t y, conferred by a resolution of the Senate of , j the United States, passed on the od of .March j last, notice was giver, to Boniuar!:, on the 14th -! dav of Anril. of the intention of this govern t ment to avail itself uf the stipulation of the subsisting c*--?iiv<?nti'.n of ftu-inlsliip, commerce ami navigation bo two en that kingdom and tbo | United States, whereby either party might, af; lev ten years, terminate the same at the cxpii ration of one year from the date of notice for that purpose. 1 The considerations which led me to call the attention of Congress to that convention, and induced the Senate to adopt the resolution referred to, still continue in full force. The con: volition* contains an article, which, alt hough ! it does not directly engage the United States to submit to the imposition of tolls on the vessels and cargoes of Americans passing into or from the IJaltic Sea, during the continuance of the treaty, yet may, by possibility, be construed as implying such submission. The exaction of those tolls not being justified by any - principle of international law, it became the i right and the duty of the United States to ret lievo themselves from the implication of cn-1 gagemcnt on (he subject, so as to be perfectly -1 free to act in the premises in such a way as -; their public interest and honor shall demand, sj 1 remain of the opinion that the United - States ought not to submit to the payment of i the Sound dues, nut so much because of their - amount, which is a secondary matter, but bct cause it is in effect the recognition of the right ??i i 'tiii.i.iiiv i\j 11 LMt WIH* ?u uu: y. i * ?i I i! i' 11 11 111' ; j highways of mitions as a close sea. ami the , i!; v;:*i??.i ?/' ii as a privilege lei winrli t;-;L 1 ute may lie imposed upon I hose who have ocs cash a i to use it. This (iuvcrmnciit, on a former occasion, not i unlihe the present, signalized its detenuinaj tion lo maintain the ficcdoin of the seas, and ; | of the great natural eliannels of navigation.? ir ; The iiaibary States had. ibr a long time, i! | coerced the payment of tribute from all nations ] whose ships frequented the -Mediterranean.? - To the last demand of such payment made by a i them, the 1'uitcd States, although sulfering - j less by their depredations than many oilier na.11 tions, returned the explicit answer that wo e . preferred war to tribute, and thus opened the -' way to the relief ol the commerce of the world e i from au ignominious tax, so long submitted to i by the more powerful natiuus of Europe. ;1 j If the manner of payment of the Sound dues 1 : differs from that of the tribute formerly eoue | ceded to the i'arbary States, still their exaei'j linn by Denmark has no better foundation in f right. Each was, in its origin, nothing but a e ; tax on it common natural right, extorted by r ; tho>e who were at that time able to obstruct -1 the free and secure enjoyment of it, but who ;. j no longer possess that power. . 1 Denmark, while resisting our assertion of c i the freedom of the Baltic Sound and Belts. i. .. i: i J v , i . e , iias imucaicu a readiness io iiiiikc some new . arrangement on l!?c subject, and lias invited ] the governments interested, including the 1'ni, I ted States, to be represented in a convention to assemble for the purpose of receiving and r j considering a proposition, which she intends | | to submit, for the capitalization of the Sound dues, and the distribution of the sum to be 1 paid as commutation among the governments, I : according to the respective proportions oft heir j' maritime commerce to and from the J'altic.? 1 1 have declined in behalf >..1'the United Stales tu accept this invitation, for the most cogent reasons. One is that Itenniark does not offer to submit to the convent ion therjuestioii oilier i right to levy the Sound dues. A second is i that, if the convention Were allowed to take cognizance of that particular ijuestioii, still it . would not be competent to deal with the great ., international principle involved, wliie^afleets , ; the right in other ca?vs of navigation aud eoin1 morc'nl freedom, as that of access 1o the Jhil; tie*. Above all. by the express terms of the propi.i iiion, it i- contemplated (hat the con. sid.er.ition of the Sound dues shall he coin' mingled with, and made subordinate to. a inat. j ler wholly extraneous, the balance of power among the governments of Kuropc. , I While, however, rejecting this proposition. .1 ami insisting on the right of five transit into and from the Baltic, I have expressed to l>eiii,1 mark a willingness oil tiie part of the I nited ; Slates to share liberally with other powers in : comncnsatiii"- her for any advantages which j. j coimnerce shall hereafter derive from expendli tu res made by her for the iniproveinent and j safety of the navigation of the Sound or Belts. 1 lay beforeyou herewith sundry tloc-inuoii!s . tm the subject. in which my views ;trc more | fully di>cl 'I. Should no saK-dhclorv sirs I raiiecincnl he soon concluded, I shall ajrain i; j cull your atlfiition to the subject, with rccoiuI'1 lncud.'tioii of sue!i measures :is may ;i]i)ic:tr to t; J he required in order to assert aud secure the fi riyhls of the I'niled Slides, so far as they arc u j allceted by the pretensions of iJcnmurlc. 1 i I'tt.'iXe;:.? I announce with much uratilica j lion tls.d, since tin; adjournment of the last - J (Vm?;i'i .?s; tiic oiici tioii then oxi>tinyr between e this jiov? rumen: and that of Franco, respecting the French Consul at 8au Francisco, has : been satisfactorily determined, and that the j relations of the two governments contiuuc to I be of the most friendly nature, j Greece.?A question, also, which has been | pending for several years between the United States and the Kingdom of Greece, growing I out of the sequestration, by public authorities j i of that country, of property belonging to the i j present American Consul at Athens, and which ! : had been the subject of very earnest discussion j heretofore, has recently been settled to the ! satisfaction of the party interested and of both j Governments. Si'AiN?With Spain, peaceful relations are j I still maintained, and some progress has been I made in securing the redress of wrongs comi plained of by this government. Spain has not ouly disavowed and disapproved the conduct of the officers who illegally seized and detained the steamer Black Warrior at Havana, but has also paid the sum claimed as indemnity for the loss thereby inflicted on citi zona of t no I nitccl States. In conso(|ucncc of a destructive hurricane, J which visited Cuba in 184 I, the supreme authority of that island issued a decree, permitting the importation, for the period of six months, of certain building materials and provisions, free of duty, hut revoked it when a; bout half the period only had elapsed, to the I injury of citizens of the United States, who I had proceeded to act on the faith of that decree. The Spanish government refused in! demnification to the parties aggrieved until re| ceutly, when it was assented to, payment being promised to he made so soon as the amount due cau ho ascertained. Satisfaction claimed for the arrcstand search of the steamer Ul Dorado has not yet been accorded, hut there is reason to believe that it will he, and that case, with others, coutinucs to he urged on the attention of the Spanish government. I do not abandon the hope of concluding with Spain some general arrange1 ment, which, if it do not wholly prevent the recurrence of difficulties in Cuba, will render them less frequent; and whenever they shall occur, facilitate their more speedy settlement. Mkxico.?The interposition of this govcrnJ uient has been invoked by many of its citizens, 011 account of injuries done to their persons and property, for which the Mexican republic is responsible. The unhappy situation of that country for some lime past has not allowed its government to give due consideration to claims of private reparation, and has appeared to call for and justify sonic forbearance in such matah flnt t1iScifVMi*ni*nmAnt T^iif if i l i ~ u 11 iwu uu itui luio^vtv/uuivui. n i-uu revolutionary movements, which have lately occurred in that republic, and in the organization of a stable government, urgent appeals to its justice will then be made, and, it may be I hoped with success, for the redress of all com! plaints of our citizens. Central America.?In regard to the Anicrican republics, which, from their proximity and other considerations, have peculiar relations to this government, while it has been my j constant aim strictly to observe all the obligai tious of political friendship and of good ueigh! borhood, obstacles to this have arisen in some j of them, from their own insufficient power to : check lawless irruptions, which in effect throws I most of the task on the United .States. Thus ' it is that the distracted internal condition of the State of Nicaragua has made it incumbent on me to appeal to the good faith of our citizens to abstain from any unlawful intervention iu its affairs, and to adopt preventive measures to the same end, which, on a similar occasion, had the best results in reassuring the peace of the Mexican States of Sonora and Lower California. Treaties.?Since the last session of Congress a treaty of amity, commerce and navigation, and for the surrender of fugitive erimin: a Is, with the kingdom of the Two Sicilies; a treaty of friendship, commerce and navigation with Nicaragua j and a convention of commercial reciprocity with the Hawaiian kingdom have been negotiated. The latter kingdom and the State of Nicaragua have also acceeded to a declaration, recognizing as iuternation, al rights the principles contained in the conI vention between the United States aud Russia i of (lit* of July, 1**4. These treaties and ' conventions will be laid before the Senate for | ratification. i Tkf.asuuy ?The statements made in my ; last annual message respecting the anticipa| ted receipts and expenditures of the Treasury, I have been substantially verrified. i 11 appears from I he report of the Secretary of the Treasuary, that the receipts during the last i fiscal year ending June 150, 1855, from all I sources, were sixty-five million three thousI and nine hundred and thirty dollars; and ' that the public cxpediturcs for the same period, exclusive of payments on account of the public debt, amounted to lifty-six million three hundred and sixty-live thousand three hunj dred and ninety-three dollars. 1 taring the J same period, the payments made in redemp. lion of the public debt, including interest and premium, amounted to nine million eight hun! dred and forty-four thousand live hundred and twenty-eight dollars. The balance in the Treasury at the beginj ing of the present fiscal year, July 1, 1855, was eighteen million nine hundred thirty one thousand nine hundred and seventy-six dollars; the receipts for the first quarter, and the esti! mated receipts for the remaining three-quarters ! amount, together, to sixty-seven million nine I hundred and eighteen thousand seven hun1 drrd and thiity-four dollars; thus affording in all, as the availably resources of the current Lliscal war. the sum of eighty-six million eight I hundred and fil'tv-six thousand seven hundred j and ten dollars. If, to the actual expenditures of the first | <|uarter of the current fiscal year, be added the | probable expenditures for the remaining three 11uarter.s, as estimated by the Secretary of the Tfcasury, the sum total will he seventy-one ! million two hundred and twenty-six thousand eight hundred and forty-six dollars; thereby i leaving an estimated balance in the treasury on July 1, lS.jil, of fifteen million six hundred I and twenty-three thousand eight hundred and sixty-three dollars and forty-one cents. In the above estimated expenditures of the present, fiscal year are included three million dollars to meet the last instalment of the ten millions provided for in the late treaty with Mexico, and seven millions seven hundred and fifty thousand dollars appropriated on account of the debt due to Texas, which sums make an aggregate amount of ten million seven hunCO o drcd and fifty thousand dollars, and reduce the expenditures, actual or estimated, for ordinary objects of the year, to the sum of sixty million four hundred and seventy-six thousand dollars. The amount of the public debt, at the commencement of the present fiscal year, was forty million five hundred and eighty-three thousand six hundred and thirty-one dollars, and, deduction being made of subsequent payments, TT- kw\l slstVkl AI* tkn rtAtrom _ III*." ? 1IUIU j^UUUU uiui Ui I 11*.: J^UCIUI J;VT Viument remaining at this time is less than four million dollars. The remnant of certain other government j stocks, amounting to two hundred and fortythree thousand dollars, referred to in my last ! message as outstanding, has since been paid. I am fully persuaded that it would be diffi| cult to devise a system superior to that, by which the fiscal business of the government is now conducted. Notwithstanding the great number of public agents of collection and disbursement, it is believed that the cheeks and guards provided, including the requirement of monthly returns, render it scarcely possible for any considerable fraud on the part of those agents, or neglect involving hazard of serious public loss, to escape detection. 1 renew, however, the recommendation, heretofore made by me, of the enactment of a law declaring it to be felony on the part of public officers to insert fabe entries in their books of record or account, or to make false returns, and also requiring them on the termination of their service to deliver to their successors all books, records, and other objects of a public nature in their custody. Derived as our public revenue is, in chief part from duties on imports, its magnitude affords gratifying evidence of the procperity, not only of our commerce, but of the other great i 1 ' 1 il . 1 1 interests upon wnicn tnat aepenas. The principle that all moneys not required for the current expense of the government remain for active employment in the hands of the people, and the conspicuous fact that the annual revenue from all sources exceeds by many millions of dollars, the amount needed for a prudent and economical administration of public affairs, cannot fail to suggest the propriety of an early revision and reduction of the tariff of duties on imports. It is now so generally conceded that the purpose of revenue alone can justify the imposition of duties on imports, that, in readjusting the import tables and schedules, which unquestionable require essential modifications, a departure from the principles of the present tariff is not anticipated. Army.?The army, during the past year has been actively engaged in defending the Indian frontier, the state of the service permitting but few and small garrisons in our permanent fortifications. The additional regiments authorized at the last session of Congress have been recruited and organized, and a large portion of the troops have already been sent to the field. All the duties which devolve on the military establishment, have been satisfactorily performed, and the dangers and privations incident to the character of the service required of our troops, have furnished additional evidence of their courage, zeal and capacity to meet any requisition, which their country may make of them. For the details of the military operations, the distribution of the troops, and additional provisions required for the military service, I refer to the report of the Secretary of War, and the accompanying documents. Experience, gathered from events which have transpired since my last annual message, has but served to confirm the opinion then ex pressed of the propriety < !' making provision, by u retired list, for disabled officers, and for increased compensation ru the officers retained on the list for active duty. All the reasons which existed, when these measures were recommended on former occasions, continue without modification, except so far as circumstances have given to some of them additional force. The recommendations heretofore made for a partial re-organization of the army, arc also renewed. The thorough elementary education given to those officers, who commence their service with the grade of cadet, qualifies them, to a considerable extent, to perform the duties of every arm of the service; but to give the highest efficiency to artillery, requires the study aud practice of many years, and it is not, therefore, believed to be advisable to maintain, iu time of peace, a larger force of that arm than cau be usually employed iu the ] duties appertaining to the service of field aud siege artillery. The duties of the staff in all its various branches belonging to the movement of troops, and the efficiency of an army in the field would materially depend on the ability with which those duties are discharged. It is not, as in the case of the artillery, a specialty, but requires also, an intimate knowledge of the duties of an officer of the line, and it is not doubted that, to complete the education of an officer for either the line or the general staff, it is desirable that he shall have served in both. With this view, it was recommended on a former occasion that the duties of the staff should be mainly performed by details from the line, and with conviction of ! the advantages which should result from such ! a change, it is again presented for the consideI ration of Congress. I V * rv Tto nf iVm .CflnroforT, nf ? 1 -"-"t <b|/V*V yjL Wl Navy herewith submitted exhibits in full the naval operations of the past year, together with the present condition of the service, and it makes suggestions of further legislation to which your attention is invited. The construction of the six steam frigates, for which appropriations were made by the i last Congress, has proceeded in the most satisfactory manner, aud with such expedition, as to warrant the belief that they will be ready for service early in the coming spring. Important as this addition to our naval force is, it still remains inadequate to the contingent exi gcncies of the protection of the extensive seacoast and vast commercial interests of the linked States. In view of this fact, and of the acknowledged wisdom of the policy of gradual systematic increase of the navy, an appropriation is recommended for the construction of six steam sloops-of-war. In regard to the steps taken in execution of the act of Congress to promote the efficiency of the navy, it is unnecessary for me to say more than to express entire concurrence in the observations on that subject presented by the Secretary in his report. Post Office.?It will be perceived by the report of the Postmaster General that the gross expenditure of the department for the last fiscal year was nine million nine hundred and sixty-eight thousand three hundred and fortyI i 11 _ i ii _ :_i. ; !i two uouars, ana me gross receipts seven million three hundred and forty-two thousand one hundred and thirty-six dollars, making an excess of expenditure over receipts of two million six hundred and twenty-six thousand two hundred and six dollars; and that the cost of mail transportation during that year was six hundred and seventy-four thousand nine hundred and fifty-two dollars greater than the previous year. Much of the heavy expenditures, to which a Treasury is thus subjected, is to be ascribed to the large quantity of printed matter conveyed by the mails, cither franked, or liable to no postage by law, or to the very low rates of postage compared with that charged on letters; and to the great cost of mail service on railroads and by ocean steamers.? The suggestions of the Postmaster General on the subject deserve the consideration of Congress. Interior.?The report of the Secretary of the Interior will engage your attention, as well for the useful suggestions it contains, as for the interest and importance of the subjects to which they refer. The aggregate amount of public land sold during the last fiscal year, located with military scrip or land warrants, taken up under grants for roads, and selected as swamp lands by States, is twenty-four million five hundred and fifty-seven thousand four hundred and nine acres; of which the portion sold was fifteen million seven hundred and twenty-nine thousand five hundred and twenty-four acres, yielding in receipts the sum of eleven million four hundred and eighty-five thousand three hundred and eighty dollars. In the same period of time, eight million seven hundred and twenty-three thousand eight hundred and fifty-four acres have been surveyed; but, in consideration of the quantity already subject to eni try, no additional tracts have been brought into ] market. The peculiar relation of the general government to the District of Columbia renders it proper to commend to your care not only its material, but also its moral interests, including education, more especially in those parts of the district outside of the cities of Washington and Georgetown. The commissioners appointed to revise and codify the laws of the District, have made such < progress in the performance of their task as to insure its completion in the time prescribed by the act of Congress. Information has recently been received, that the peace of the settlements in the Territories of Oregon and Washington is disturbed by hostilities on the part of the Indians, with indications of extensive combinations of a hostile character among the tribes in that quarter, the more serious in their possible effect by reai son of the undetermined foreign interests exist ing in those Territories, to which your attention has already been especially invited. Effi, cient measures have been taken, which, it is believed, will restore quiet, and afford protection to our citizens. In the Territory of Kansas there have been acts prejudicial to good order, but as yet none have occurred under circustances to justify the interposition of the federal Executive. That could only be in case of obstruction to federal law, or of organized resistance to territorial law, assuming the character of insurrection, which, if it should occur, it would be my duty promptly to overcome and suppress. I cherish the hope, however, that the occurrence of any such untoward event will be prevented by the sound sense of the people of the Territory, who, by its organic law, possessing the right to determine their own domestic institutions, are entitled, while deporting themselves , peacefully, to the free exercise of that right, 1 and must be protected in the enjoyment of it, without interference on the part of the citizens of any of the States. The southern boundary line of this territory has never been surveyed and established. The rapidly-extending settlements in that region, and the tact that the main route between In- ^ dependence, in the State of Missouri, and New Mexico, i> contiguous to this Hue, suggest the probability that embarrassing questions of jurisdiction may consequently arise. For these and other considerations, I commend the subject to your early attention. Constitutional Theory of the Government.?1 have thus passed in review the general state of the Union, including such particular concerns of the federal government, whether of domestic or foreign relation, as it appeared to nie desirable and useful to bring to the special notice of Congress. Unlike the great States of Europe and Asia, and many of those of America, these Uuited States are wasting their strength neither in foreign war nor domestic strife. Whatever of discontent or public dissatisfaction exists, is attributable to the imperfection of human nature, or is incident to all governments, however perfect, which hu? * mau wisdom can devise. Such subjects of political agitation, as occupy the public mind, .? nvfnnf r\f AvomrOYofinn nf in? UUU5131 IU U ^itai UAIVUI \JM. v- |_ evitable evils, or^ver zeal in social improvemeut, or mere imagination of grievance, hav ing but remote connection with any of the con- Jfl stitutional functions or duties of the federal I government To whatever extent these ques- jfl tions exhibit a tendency menacing to the sta- Jj bility of the Constitution, or the integrity of the Union, and no farther, they demand the V consideration of the Executive, and require to I be presented by him to Congress. Before the Thirteen Colonies became a con