of eoanty pride. He took a drink f water
ad commenced again spoke of the tn-
war, and yelped at Mr. Bash and tie Ore
gon Statesman.
Sir. HUGHES mid the war was ended,
ad the Indians are on the Reserre. Xir.
IL compared the old law and the propoeed
law, expressing his preference for the old
law. Committee rose, reported progress,
tad asked lea re to sit again. Adjourned.
r - - Wkdkisdat, a. m., Jan. 13th, 1858.
Is the Cocxciu Mr. DRAIN, from
corneal ttee on roads, introduced a bill to lo
cate a Territorial road from Jefferson Insti
tute, in Hartoa Co., to Brownsville, in Linn
Connty.
! Xir. UEHKx. from committee on com
leer on, recommended the passage of the me
morial to Congress for an appropriation for
Muuinr a cnstom-boase. earn memorial
vrsa recommitted to a special committee of
tfcree, consisting of Messrs. Wait, Sheil and
Eeott.
Dills to incorporate Padding Hirer Trans-
partatioo and Navigation Co., to change a
portioa of Territorial road from Salem to
McDonald's ferry, to legalize the location
of a county road in Jjion uo., u. 1., were
Mr. SMITH presented a bill to relocate
a part of the Territorial road leading from
Oregoa Uity to rieasant Hill, in Lane Uo
accompanied by a petition referred to com
Bfittee on roads.
, llr. BERRY was appointed on the joint
committee to memorialize Congress on be-
kaif of lira. Harris.
The Memorial to Congress for the forti8
cation of the month of the Colombia rirer,
waa reported and recommitted to tne com
mittee on Council memorial No. 1.
Adjourned.
Is the Hocsr. Mr. REES presented
the petition of 100 citizens of Clackamas
Co, praying the annexation of a part of
said county to Multnomah referred, to com
mittee on counties.
llr. DRYER presented a petition of
one of the citizens of Washington connty,
praying that a portion of said connty may
be annexed to XTaHnomah. Referred to the
representative of said connty.
Mr. GATES presented a memorial to
Congress for the purpose of making a mili
tary road from Portland to the Dalles
adopted.
... Mr. COX, from committee
ported back the bill to locate
Eugene City to Smith's rirer,
meats report adopted.
on road?, re
ft road from
with amend-
Mr. CRANOR, from committee on incor
porations, reported, recommending tne pas
sage of the bill amending the charter of the
aty of Corrallis.
Mr. BROWN, of Jackson, fr6m commit
tee on ways and means, reported the pen
two of Asahel Bush, for printing for con
stitatSonal convention, referring it to the
consideration of a future legislature.
- On motion of Mr. JOHNSON, the H. J
resolution relative to the purchase of Stat-
tea, was sent back to the Council
. numerous bills were read a second time
and referred.
The bill to amend an act relating to mar
l ir"w and divorce, was taken up.
Mr. CRANOR. I do not propose to ar
gue the question, but I cannot support the
EtlL la New York the same law is in force
as exists here, and there it works well. The
law as it now stands, leaves it to the discre
tion of the court, and there is little doubt
bat that the courts do justice. The law
should be tried, and if it is found to work a
hardship upon any one, then it is time to
alter it, but I have heard of no complaints
. Mr. MACK. The law at present only
proridra for the wife's Cower m two In
stances, when for imprisonment, and for
adultery by the husband, and in no other in-
naaces. xne law is mueeu necessary to
protect the wife against the wrongs of the
husband ; if the wife shonld procure a di
force for any of the other causes of divorce
than the two mentioned, she being innocent
and the husband guilty, is it not right that
she should be endowed of his lands? He
shoald pay the penalty of his guilt, and not
be pad for treating bis wife era Uy. but if
tie wife is guilty, she does not obtain any
benefit under the law I hare introduced. It
- is confined to the class of cases that arise
from the fanlt of the husband; if she is the
guilty party, she acquires no rights. -
Mr. WOODSIDES. I am opposed to
altering statutes without urgent reasons, be
cause by the incessant changes which have
taken place, we are not certain what our
rights are under the lava. Let the law as
it exists be fally tested before any altera
tions are made, and thea if wrong arises,
correct it, but not until it is ascertained
It oneht to be left to the discretion of the
coort, where it now is, in the other cases
In the two instances where the law now
gives property to the wife, it is right, bat in
the other cases the granting of divorces is
left is the discretion of the court, and so
cnght the distribution of the property, but
ia the two instances where the wife is en
dowed, the man has rendered himself an out
law, and dead ia law. I shall vote against
the amendment.
Mr. HUGHES. I was one of the com'
rsaittee to whom this bill was referred. I
believed this amendment an improvement on
the old law. Mr. H. read the old law and
the one proposed, and compared the two.
Mr. CRANOR. It has been said, the
world has been too much governed. There
is bo necessity for the passage of this amend
ment. According to it, when a man has la
bored and accumulated property, he may
marry a womaa with whom he could not
live, and upon his leaving her on account of
her worth league, she woaM become endow
oa with bis property. . It holds out an in
ducement for an evil woman to make a man's
home a bell, and cause a divorce, and obtain
kit property. The court will be better ac
quainted with the circumstances of each
case, aa4 hence the necessity of leaving it
ia the discretion of the court. Mr. C. read
from Sec 8, of the old law, "in granting a
divorce, the court shall also make such dis
poaitioa of the property of the parties as
shall appear just and equitable." It certain-
' ly is right and equitable the court should
govern and direct this matter, which is al-
. ready provided for in the existing law, and
with these remarks, I shall cease my opposi
tion to the -bill.
Mr. BROWN, of Jackson. Iam aston
ished at the gentleman saying it was in the
discretion of the court, when the statute, in
See. 10, of the same chapter, in plain Eng
lish, aaya "she shall not be entitled to dower
ia other case of divorce." It certainly
means that except ia the two cases cited
she shall not.
. Mr. COLLARD read the whole of Sec.
8, of the old law, and said the latter part
strengthened him in the belief that this
amendment was not necessary. Since the
first section' of this bill has been stricken
oat, which met with bis approval, he shonld
vote against the bilL
Mr. KING. This ill is nothing more
than aa extension of the dower right to the
-other canes of divorce, besides the two cases
referred to, when it is granted on account of
the guilt of the husband. The one remark
of Mr. Brown, of Jackson, has satisfied tne
on this matter. When the divorce is grant
ed oa account of the misconduct of the bus-
fcJ, La baa thea forfeited bis right to the
property, and the woman should be endowed
with his lands.
Mr. MACK. The anrnment of the gen
tleman from Linn, presumed that this bill is
to protect the wife when she is guilty, which
is not the case. It only provides protection
when the husband is In the wrong, and the
wife innocent. The wife is entitled to equal
rights with the husband, and he shonld not
be paid to drive her from him. There may
be cases when the husband makes the home
a bell. This bill protects the woman then.
Mr. M. spoke further ia support of the bill,
ine out passed. .
The bill to, amend the law "to regulate
proceedings in actions at law in the sopreme
and district courts." was taken no. This
bill extends the time of redemption to twelve
monies to the iudrment debtor it redeem'
ed within the first six months, the purchaser
is entitled to 10 per cent, oh the purchase
money if in the succeeding six moutns.tne
purchaser receives 30 per cent, on the pur
chase money.
Mr. JEFFERS. I regard SO per cent.
too great a tax on the hands of industry.
Ten per cent, is all the creditor shonld re
ceive from a man who is industriously en
gaged in recovering his fortune. It is best
to pursue a wise policy, regulate the rela
tions between the debtor and the Shylocks
the unmerciful creditors. The law has
made many fraudulent debtors, who sc
themselves by fraudulent conveyances, and
creditors are afraid to press their claims
fearing their debtors will take advantage of
those fraudulent conveyances Mr. J errors
moved to refer to a special committee,- with
instructions to insert 10 per cent, where 80
per cent, occurs and spoke in favor of the
amendment.
Mr. BROWN, of Jackson. There are
great many unmerciful debtors who borrow
money to go into wild speculations, with no
intention of paying their liabilities unless
successful. Twenty per cent, is the usual In
terest here, and it is higher in the south.
and this increases the time of redemption
fourfold at the usual rate or interest.
Mr. COLLARD favored the original bill,
bnt was opposed to the reference and amend
ment. The bill passed.
House bill to change the line between
Umpqua and Douglas Co. was taken np.
Mr. Whiteaker, as a member of the commit
tee to whom was referred the petition for
this division, I would say this is a purely Io-
col matter, to which both of the representa
tives from those counties consented. The
bill passed.
lue bill concerning swine found running
at large in Wasco Co., was taken up. Mr.
Gates said the bill was reported in accord
anee with the wishes of the people of that
county, as expressed by the petition. Mr.
G. made other remarks. Bill passed.
Bills to change the names of Eveline and
Douglas D. Hess, to divorce J as. Hot u well
and Elizabeth Botbwell, and to legalize the
marriage of James -Botbwell with Itboda
Ann Harris, and to divorce Philester Lee
from his wife Eliza Ana Lec, were passed.
Adjourned.
AFTERNOON" SES3IOX.
Ix the Cocxcru Oa motion of Mr.
CORNELIUS, Council adjourned.
I.i the ITocse. Bills to divorce Lavina
Chrisraan from her husband, Joel Chrisman,
to change a road in Linn Co., to amend the
charter of Portland, to grant Elizabeth
nines a divorce, for relief of school district
No. 32, in Marion Co., to locate a Territo
rial road from Eugene City to Smith's river,
in Umpqua Co., were passed.
Mr. COLE moved to niouaiiKT tne rule 1
on the bill to change the line between Ump
qua and Donglas Co. carried, aud bill laid
on the table.
On motion of Mr. JEFFERS, the joint
resolution relative to the post-office at As
toria, was taken np, with the amendment;
amendment of Mr. Mack adopted, and re
solution, as amended, laid on the table after
a lonsr debate, in which Messrs. Jeffers,
Mack, Brown, of Jackson, Woodsides.King
aud Couard participated. Adjourned.
Cobvallis, Jan. 11th, 1858.
Mb. Bcsh In reply to my last epistle.
Avery's Ox declared that he did not desire
to mar tbe new year by personal quarrels,
and m order to render himself more com
pletely an object of disgust and comlempt,
the "lousy lummux" has kept himself drank
ever si nee.
I spurn his invitation to smoke with him
the "calumet of peace" that would be get
ting down a little too low for a while man
The drunken brute is unworthy the notice
of men, except to portray his true character
for the benefit of those who don't know him.
When the Statesman was received, con
taining Col. Nesmith's card, denouncing the
lummux as a cowardly craven, the poof
devil too it in an extra load ot encap whisky
to caim nis intestines (ne has no nerve l
while he avoided the gauntlet by retorting
wim a coiumn oi nig characteristic swagger.
auis is tne aeoasea wretcn wno intimates
that Col. Nesmith might travel 30 or 40
a . a a. . - a .
aiues to ootain Baiisiaciion, wnen it, is so
well known that the cowardly Inmmux won't
fight under any circumstances. What as
surance would tbe Col. have that the pol
troon womau't Diae wnen tie heard be was
coming? His pusilanimous avoidance of
Nesmith s card, and resorting to an auda
cious lie in slating that he had not made
any such statements, when the lie direct is
fastened upon him by his former issue, de
notes a depth of depravity seldom equalled.
It anrtning were wanting to prove him a
cowardly swaggerer, his conduct for the last
two weeks would dispel all doubt on that
head. He is now universally acknowledged
to be a cowardly poltroon, iu addition to bis
previous character as an unprincipled Call
fornia adventurer and drunken brawler.
It is regretted here by all of Nesmith's
friends that he should hare descended to no
tice tbe slanders of a mere tool, .destitute of
moral or physical courage a man without
brains, name, or anything else reputable.
Bab! such cattle as him never fight. Per
haps be will deny that be bad his head
combed with a chair the other night by a
gentleman whom be bad insalted, while giv
ing vest to bis knowuotbiugisni.
Tbe lummux visited feugene city a snort
time since, and made it a point to get drank
all the way through as soon as be arrived.
11 is bestial conduct wime mere was ine
cause of bitter mortification to those who
accompanied and introduced him. Tbe
beast committed an act in his room at tbe
hotel, in another person's boots, which sho'd
brand him forever as a living nuisance.
And worst of all, his only excuse in pallia
tion of the offence was the humiliating con
fession that he was miserably drank Doubt
less the same excuse has saved the iufamous
creature from a coat of tar and feathers a
hundred times before.
What a commeutary on tbe chivalry of
Mississippi ! Pro-slavery men are throwing
him off in all directions; not a week passes
without cambers stopping his paper. - Even
Avery is becoming ashamed of him; be
thought when he bought him that be would
"stand np to the rack, fodder or no fodder."
Perhaps I am hardly justified in scathing
this nonentity so severely bat I shall keep
Stirring him up aa long aa he remains ia the
Territory. More anon. VERITAS.
P. S. You are requested to give Mr.
Hall my name, if he desires it, by personal
application at your office, if kt wants ann-
tmng. V.
OREGON STATESMAN.
TUESDAY, JANUARY, 19, 1858.
Editorial matter on first page.
From no part of the Territory do
we hear complaints from democrats respect
ing the action of the Central Committee, in
fixing the apportionment, with the exception
of a very few ia Clackamas County, aud
those are laboring nnder the erroneous Ira
pression ' that Gen. Lane ran behind the
democratic ticket in that county, and that,
therefore, tne county ongtit to bare one
more delegate they admit the party vote
basis to be correct. ' , Admit that Lane did
not get the full democratic rote polled in
Clackamas still the Committee bad to
take the vote of some Territorial candidate
for their general rule. And they could not,
and the Convention cannot, make exceptions
la favor of this of that county. But, we
think Gen. Lane did get the democratic vote
polled ia Clackamas. Let us see: Gen.
Lane received ia that county 809 votes ;
Holbrook and Abernethy were the only can
didates the opposition ran for delegates to
the Constitutional Convention, and they
ran particularly against Robblus and Lore-
joy. Robbins received 808 votes three
less tuan Liana ; liovejoy received 335 36
more than Lane. Holcomb, democratic
candidate for Sheriff, also had an opponent,
and he (.liolcomb), received 313 rotes
four more than Lane. The Sheriff vote
was perhaps as good a party test as any.
We know that some on the democratic
local ticket received more votes than those
named above, (we have taken the lowest,)
but they had no earnest opposition. Gen.
Laue, we belive, did receive the democratic
rote polled in Clackamas, and full jus
tice has been done her, by the apportion
ment of the Central Committee. The most
of the democrats in Clackamas are entirely
satisfied with that apportionment, and we
think all will be, when they fiud that Lane's
vote was not aa unfair test in that county.
As we before said, tbe democracy of the
country are satisfied and pleased with the
apportionment. The grumbling comes from
the regular and " disaffected " black repub
licans and if they did not grumble about
this, they would about somtthiug else. Let
them grumble on who cares? The expec
tation (if thejc is any such,) that the Cen
tral Committee will change tbe basis of rep
resentation, and tbe hopes of any that the
Convention will break in upon the basis
adopted by the Committee, will never be
realized, " nor begin to be.
The disaffecteds " talk ranch about
schism in the democratic ranks." There is
no schism, except that which divides demo
crats from " republicans." When was the
schism manifested f Certainly not last June,
when the democratic candidate for Delegate
received over 2,000 majority. The demo
cratic party of Oregon is this day united
Mono, urm, and invmcmie. lnere is no
" disaffection, or " defection."
We are informed by the Snperinten
den vt Smllan A ffWirw, that ly tmo tnnit trc
received from the Department at Washing
ton, $73,418 84, applicable to debts con
tracted by Gov. Stevens, on account of the
Indian service, in Washington Territory.
Also, $170,311 29, applicable to outstand
ing liabilities, in Oregon, contracted previ
ous to Mar 1st, 185T. These funds were
received in a single draft, ou the Assistant
Treasurer, at San Francisco. The imprac
ticability of getting it cashed here will
necessarily compel the Superintendent to go
to San Francisco for the corn. He requests
us to say that notice will be given upon the
receipt of the focds here, so that parties
may present their demands for liquidation
Esette ftuwm Ckacnl Lane.
Gen. Lane writes to us, uuder date of
Nov. 28, 1857. as follows:
'The Secretary of War has promised to
recommend Congress to provide for paying
the awards of our war commission ; this is
a great point gained. He says after reading
tne report, tnat, tnougn in some instances
prices appear high, he is satisfied that the
commission have acted concientionsly and
justly, acd that their awards most be paid
Much of the time of the administration is
taken np with the Mormon war. I was pleasd
the other night at bearing tbe President say
that be was opposed to a little war. He is
determined to make short work with Brig-
ham and bis deluded followers, and will ask
for four or five volunteer regiments to co-op
erate with the regular forces in Utah. And
he further says that our country shall not be
left unprotected, and should the troops now
on duty at tbe posts iu Oregon and Wash
ing-ton be ordered away, that other troops
(Regulars) shall take their places.
Salem, O.JT., Jan. 14, 1S58.
Mr. Editor In tbe " Statesman" of the
5tb inst., I took occasion to call upon L. P.
If all, editor of tbo Occidental Messenger,
for proof of the charges which he had seen
proper to publish in his paper in relation to
myself; as the accused, I supposed that I
had a right to demand to be confronted
with the proofs where the charge was of so
gross a character ; but instead of producing
them, be reiterates his falsehoods and calum
ny, trying to avoid tbe issue, by the intima
tion that I should go to Corrallis for sat
isfaction !" While, if be should place his
carcass in my way. and should be sober.
I might be justifiable in kicking him, I
would not be justifiable in extending to tbe
drnnken poltroon and cowardly puppy, the
consideration due to the gentlemen.
J. W. NESMITH.
5J we are indebted to Nichols & Co..
and J. W. Sullivan, for full files of States
and California papers. McCormick is also
entitled to thanks for favors now and here
tofore ; likewise Col. Jennings, and D. B.
Uanner.
Tbe President's Message is received. It
is a plain, valuable State paper, and we ad
vise everybody to read it. It is long, and
we can give bat part of it this week, and
will conclnde it next. We crowd oat leg
islative proceedings to make room for it.
It is supposed at Washington that
the Mormoos will vacate Utah in the Spring
and take possession of feonora. ,
Reuben P. Boise has been appointed
Associate Justice for the Sopreme Court of
Oregon, in place of Judge Olney, who de
clined a re-appointment.
It was thouarht that Col. Orr.of
ooutn Carolina, would be Speaker of tbe
House of Congress. .
MESSAGE.
i Houtt of Rrpn-
. In obedience to theeonunand of the Constitu
tion, It hat now becone my duty "to give to Con
.gross information of to state of the Union, and
recommend to their Moderation anrh measures"
as I judge to be necesaxy and expedient."
But first, and above Ul, our thanks are dne to
Almighty God for tbe mmerous. benefits which he
has bestowed upon thk people ; and our united
prayers ought to ascent to Uhn that He would
continue to bless oar treat republic in time to
come as He has blestedit in tine past. Since the
adjournment of the Ut Congress, our constit
uents have enjoyed anpinuraaT degree of health.
The earth has yielded let fruits abundantly, and
has bountifully rcwardHl the toil of the husband
man. Our great staphs have commanded bigh
prices, and, np till, vithin a brief period, our
manufacturing, mincr4 and mechanical occupa
tions have larvclr naraken of tbe reneral pros
perity. We have posmsed all the elements of
material wealth in rid abundance, and yet, not
withstanding all thessadvantages, our country,
in its monetary interOts, is at the present mo
ment in a deplorable onditton.
In tbe midst of nnstrpassed plenty in all the
productions of am-icnlmre and in all the elements
of national wealth, wi find our manufactures sus
pended, our public vorks retarded, our private
enterprises of differint kinds abandoned, and
thousands of useful kborcra thrown oat of em
ployment and redaee4 to want. The rerenne of
the government, which ia chiefly derived from du
ties on imports from abroad, has been greatly re
duced, whilst the appropriations made by Con
gress at its last sessioa lor the current fiscal year
are very large in amoint.
Under these circumstances a loan mar be re
quired before the close of your present session ;
but this, although deeply to be re ere t ted, would
prove to be only a sight misfortune when com
pared with the sutferTng and distress preTailing
among the people. With this the Government
cannot fail to deeply sympathise, though it may
do wunoni xne power to extend rener.
It is our dnty to- inquire what has produced
such unfortunate resnlu, and whether their recur
re nee can be pi vented? In all former remlsions
the blame mirht hare been fairly attributed to
variety of co-operating causes : but not so upon
the present occasion. It is apparent that our ex
isting misfortunes have proceeded solely from our
extravagant and vicious system of paper curren
cy and bank credits, exciting tbe people to wild
speculations aud gambling in stocks. These re
vulsions most continue to recur at successive in-
terrals so long as the amount of the paper cur
rency and bank loans and discounts of the coun
try shall be left to the discretion of fourteen hun
dred irresponsible banking institutions, which
from the very law of their nature will consult the
interest of their stockholders rather than the pub
lic welfare.
The frame rs of the Constitution, when thev
gave to Congress the power "to coin money and
to regulate the value thereof." and prohibited the
States from coining money, emitting bills of cred
it, or making anything but cold and silrer coin a
tender in payment of debts, supposed they had
prxneciea roe people against tne evils ot an ex
cessive and irredeemable paper currency. Thev
are not responsible for the existing anomaly that
a government endowed with the sovereign attri
bute of coming money and regulating the value
thereof shonld have no power to prevent others
from driving this coin out of the country and fill
ing np the channels of circulation with paper
which does not represent gold and silver.
It is one of ihe hicbebt and most responsible
duties of government to insure to the people a
sound circulating medium, the amount of which
ought to be adapted with the utmost possible wis
dom and skill to the wants of internal trade and
foreign exchanges. If this be either treat! v above
or greatly below the proper standard, the market-
or diminished in the same proportion, and injus
tice to individuals as well as incalculable evils to
the community are the consequence.
Unfortunately, under the construction of the
Federal Constitution, which has now -prevailed
too long to be change., this important and deli
cate duty has been dissevered from the coining
power and virtually transferred to more than four
teen hundred Statu banks acting independently
of each other, and rernlatinr their paper issues
almost exclusively by a regard to the present in
terest of their stockholders. KxercUinp the sove
reign power ot providing a paper currency, in
stead uf coin, tor the country, the first duty which
these banks owe to tbe public is to keep in their
vaults a sufficient amount of gold and silver to
insure the convertibility of their notes into coin
at all times and under all circumstances. Jio
bank ought ever to be chartered without such re
strictions on its business as to so seenre this re
sult. AH other restrictions are comparatively
rain. -1 tits is the tmly tm: tunenstone me only
efficient regviator of a paper currency the only
one which can guard the public against over-is
sues and bank suspensions. As a collateral and
eventual security, it is doubtless wise, and in all
cases ought to be required, that banks shall hold
an amount of United States or State securities
equal to their notes in circulation and pledged for
their redemption. This, however, furnishes no
adequate security against over-issues. On the
con.rary.it may be perverted to inflate the cur
rency.
Indeed, it is possible by this means to convert
all the debts of the United States and State gov
ernments into Dana notes, without .reference to
the specie required to redeem them. However
valuable these securities may be in themselves.
they cannot be converted into gold and silver at
the moment of pressure, as our experience teach
es, in sufficient time to prevent bank suspensions
and the depreciation of bank notes. '
In England, which is to a considerable extent a
paper-money country, though vastly behind onr
own in this respect, it was deemed advisable an
terior to the act of Parliament of 1&44. which
wisely separated the issue of notes from the bank
ing department, for the Bank of ogland always
to keep on hand gold and silver eaual to one-third
of its combined circulation and deposits. If this
proportion was no mora than sufficient to secure
the convertibility of its notes, with the whole of
Ureal lintain, and to some extent the continent
of Europe, as a field for its circulation, rendering
it almost lmpossioie tnat a sudden ana immediate
run to a dangerous amount should be made upon
it. the same proportion would certainly bo insuffi-
l. ...... . x
fourteen hundred banks has but a limited circum
ference for iu circulation, and in the course of a
very few days tbe depositors and note-holders
might demand from such a bank a sufficient
amount in specie to compel it to suspend, even al-
tnooga it naa coin in it vaults equal to one-third
of its immediate liabilities. Aud yet I am not
aware, with the exception of the banks of Louis
iana, tnat any state Dana throughout the Union
has been required by its charter to keep this or
any otner proportion ot gold and silver compared
with the amount of its combined circulation and
deposits. What has been tbo consequence! In a
recent report made by the Treasury Department
on the condition ot luo banks throughout the dif
ferent States, according to returns dated nearest
to January, leS57, the aggregate amount of .actual
specie in their vaults is a5et.349,83S. of their cir
culation Sl4,778,and ot their deposits f230,-
Thus it appears that these bauks in the aggre
gate have considerably less than one dollar in sev
en of gold and silver compared with their circula
tion and deposits, ll was palpable, tnerelore,
that the very first pressure must drive them to
suspension, and deprive the people of a converti
ble currency witn ail its disastrous consequences,
It is truly wonderful that thev should have so long
continued to preserve their credit, when a demand
for the payment of one-seventh of their immedi
ate liabilities would have driven them into insol
vency. And this is the condition of the banks,
notwithstanding that four hundred millions of
irold from California have flowed in upon us with
in the last eight years, and the tide still continues
to flow. Indeed, such haa been the extravagance
of bank credits that the banks now hold a consid
erable less amount of specie, either in proportion
to their capital or to their circulation and deposits
combined, than they did before the discovery of
gold in California. - whilst in the year lovi their
nooj in urnnnrlion to their capital was more than
equal to one dollar for four and a half, in 1857 it
does not amount to one doHar for every six dollars
and thirty-three cents of their capital, in the
year 1844 the specie was equal, within a very
mall traction, to one uoiiar in uro ui luuir circu
lation and donoaits: in 1857 it is not eaual to one
dollar in seven and a half of their circulation and
deposit.
From this statement it ia easy to account for
our financial history for the' last forty years. It
has been a history of extravagant expansions in
the business of the country, toiiowea Dy ruinous
contractions. At successive intervals the best
and most enterprising men have been tempted to
their ruin by excessive bank loans of mere paper
credit, exciting them to extravagant importations
of foreign goods, wild speculations, and ruinous
and demoralising stock gambling. When the cri
sis arrives, as arrive it must, the banks can ex
tend no relief to the people. In a vain struggle
to redeem their liabilities in Specie they are com
pelled to contract their loana and their issues ;
and at last, in the hour of distress, when their as
sistance is most needed, they and their debtors to
gether sink into insolvency.
It is this paper system of extravagant expan
sion, raising the nominal price of every article far
beyond its real value, when compared with the
THE PllEBICSNT'S
FaMow Citizens of tit 9tuate mn
tmtMtiutt !
cost of similar articles In countries whose circula
tion 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
incidental protection afforded to onr domestic man
ufactures by the present revenue tariff.
But for this the branches of onr manufactures
composed of the raw materials, the production of
our own country such as cotton, iron ana wool
len fabrics would not only have acquired almost
exclusive possession of the home market, but
would have created for themselves a foreign mar
ket tbrougnont the world.
Deplorable, however, as mar be our present fi
nancial condition, we may yet indulge in bright
hopes for the future. Mo other nation has ever
existed which could have endured such violent ex
pansions and contractions of paper credits with
out lasting injury; yet th buoyancy of youth.
the energies of our population, and the spirit
which never quails before difficulties, will enable
us soon to recover from oar present financial em
barrassment, and may occasion as speedily to for
get the lesson which they have taught.
In the meantime, it is the duty of the govern
ment, oy an proper means witnin its power, to aid
in alleviating the snflerings of the people, occa
sioned by the suspension of banks, and to provide
against a recurrence ot tne same calamity, un
fortunately, in either aspect of the case, it can do
but little. Thanks to the independent treasury,
the governmont 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 silver. Its disbursements
in coin will pass into circulation, and materially
assist in restoring a sound currency. From its
high credit, should we be compelled to make
temporary loan, it can be effected on advantageous
terms. This, however, shall, if possible, be avoid
ed; but, it not, then the amount shall be limited
to the lowest practical sum.
I have, therefore, determined that whilst no
useful government works already in progress shall
be suspended, new works, not already commenced
will be postponed, if this can be done without in
jury to the country. Those necessary for its de
fence shall proceed as though there had been no
crisis in oar monetary anairs.
Bat the Federal Government cannot do much
to provide against a recurrence of existing evils.
Even if insurmountable Constitutional objections
did not exist against the creation of a National
Bank, this would furnish no adequate preventive
security. The history of the last Bank of the
United States abundantly proves the troth of this
assertion. Such a bank could not, if it would,
regulate tbe issues and credits of fourteen hun
dred State banks in such a? manner as to prevent
the ruinous expansions and contractions in our
currency which afflicted the country throughout
the existence of the late bank, or secure as
against future suspensions. In 1825, an ef
fort was made by the Bank of England to cur
tail the u sues of .the country banks under the
most favorable circumstances. The paper cur
rency had-been expanded to a ruinous extent, and
tne .Bank put forth all its power to contract it in
order to reduce prices and restore the equilibrium
of the foreign exchanges. It accordingly com
menced a system of curtailment of its loans and
issues, in the vain hope that the joint-stock and
private banks of the kingdom would be compell
ed to follow its example. It fonnj, however, that
as it contracted they expanded, and at the end
ot tne process, to employ tbe language of a very
high official authority, " whatever redaction ot the
paper circulation was effected by the bank of Eng-
isuu iu ica; was more wan made np oy ine is
sues of the country banks." -
Bat a Bank of the United States would not, if
it could, restrain the issues and loans of the State
banks, because its duty as a regulator of the cur
rency mast often be in direct conflict with the
immediate interest of its stockholders. If we ex
pect one agent to restrain or control another, their
interests most at least in some degree, be antago
nistic. But the directors of a Batik of the Uni
ted States would feel the same interest and the
same inclination with the directors of the State
banks to expand the currency, to accommodate
their favorites and friends .villi loans, and to de
clare large dividends. Such has been oar expe
rience in regard to the last bank.
After all, we most mainly rely upon the patri
otism and wisdom of the States for the prevention
and redrets ot tne evil, it they will afford as a
real specie basis for our paper circulation bv in
creasing the denomination of bank notes, first to
twenty, -an a aiterwaras to ntty dollars ; it tney
will require that the banks shall at all times keep
on band at least oue dollar of gold and silver for
every three dollars of their circulation and depos-
ites ; and if they will provide by a self-execnung
enactment which nothing can arrest, that tbe
moment they suspend they shall go into liquida
tion, I believe that such provisions, with a week
ly publication by eacn bank ot a statement of its
l-niutitinn. V l.l f far IV ,li ui c iMt Ma
ture suspensions of specie payments.
Congress, ia my opinion, possesses the power
to pass a uniform oauarupt law applicable to all
banking institutions throughout the United States,
and I strongly recommend its exercise. This
would make it the irreversible organic law of each
bank's existence, that a suspension of specie
payments shall produce its civil death. The in
stinct of self-preservation would then compel it
to perform its duties in such a manner as to es
cape the penalty and preserve its life.
'r-1 .... c t i i . i i . : . c
1CUCC VI UUIK8 1DU LUC ClfCUlUlOD Ul
bank paper are so identified with the habits of oar
people that, they cannot, at this day, be suddenly
abolished without much immediate injury to the
country. If we could confine them to their ap
propriate sphere, and prevent them from adminis
tering to the spirit of wild and 'reckless specula
tion oy extravagant loans and issues, tney might
be continued with advantage to the public.
Bat this I sav, after long and much reflection ;
if exDerience shall Drove it to he imnossible to en
joy the facilities which well-regulated banks might
anoru, witnoui at tne same time suffering tbe ca
lamities which the excesses of the banks have
hitherto inflicted noon the country, it would then
be far the leaser evil to deprive them altogether
ot tne power to issue a paper currency and con
fine them to the functions of banks of deposite
ana discount.
Oar relations with foreign governments are.
upon tbe whole, in a satisfactory condition.
The diplomatic difficulties which existed be
tween the government of the United States and
that of Great Britain at the adjournment of last
Congress, have been happily terminated by the
appointment of a British minister to this country,
who has bfien cordially received.
Whilst it is greatly to the interest, as I am con
vinced it is the sincere desire, of the government,
and people of the two countries to be on term of
intimate tnendsnip witn eacn otner, it nas Deen
onr misfortune almost always to have had some
irritating, if not dangerous, outstanding question
with Great Britain.
Since the origin of the government we have
been employed in negotiating treaties with that
power, and afterwards in discussing their true
intent and meaning. In this respect, the con
vention of April llhh, 1850, commonly called the
Clayton and Bulwer treaty, has been the most
unfortunate of all ; because the two governments
place directly opposite and contradictory con
structions npon its first and most important arti
cle. Whilst in the United States, we believed
that this treaty would place both powers upon an
exact equality by the stipulation that neither will
ever " occupy, or fortify, or colonise, or assume or
exercise any dominion" over any part of Central
America, it is contended by the British govern
ment that the true construction of this language
has left them in the rightful possession of all that
portion of Central America which was in their
occupancy at the date of the treaty; in fact, that
the treaty is a. virtual recognition on the part of
tne united Ota lea ot tne ngbt of Ureal Untain,
cither as owner or protector, to the whole exten
sive coast of Central America, sweeping round
from the Kio Hondo to the port and harbor of San
Joan do Nicaragua, together with the adjacent
Bay Islands, except the comparatively small por
tion of this between the Bars toon and Cape Hon-
ouras. According to-tneir construction, the
treaty does no more than simply prohibit them
from extending their possessions in Central Amer
ica beyond the present limits. It ia not too much
to assert, that if in the United States tbe trea
ty had been considered susceptible of such a con
struction, it never would have been negotiated
unuer tne aumority ot tbe rretudent, nor would
it have received the approbation of the Senate.
im uiuicimu cuuvicuwn -in ine united biates
was, that when our government consented to vi
olate its traditional and time-honored policy, and
to stipulate with a foreign government never to
occupy or acquire territory in the Central Ameri
can portion oi oar continent, tne consideration
for this sacrifice was that Great Britain shoald.
in this respect, at least, be placed in the same po
sition with ourselves. Whilst we have no right
to aouoi we sincerity ot tbe British Uovernment
in their construction of the treaty ; it is at the
same time my deliberate conviction' that this con
struction is in opposition both to its letter and its
spirit.
Under the late administration negotiations
were instituted between tho two governments for
the purpose, if possible, of removing these diffi
culties; and a treaty having this laudable object
in view was signed at London on the 17th of Oc
tober, 1856, and was submitted by the President
to the Senate on the following 10th of December.
Whether this treaty, either iu its original or
amended form, would have accomplished the ob
ject intended without giving birth to new and
emDarassing compucauona oeiweou uro two gov
ernments, may perhaps be well questioned. Cer
tain it is, however, it was rendered much less ob
jectionable by the different amendments made to
it by tbe senate, ine treaty, as amended, was
ratified by me on the 12th March 1857, and was
transmitted to London for ratification by the Brit
isb Government. That government expressed its
willingness to concur in all the amendments made
by the Senate with the single exception of the
clause relating to Buatan and other islands in the
Bay of Honduras. The article en the original
treaty, as submitted to the Senate, after reciting j
that these islands and their inhabitants " having
hn hn mnvention bearing date the 27th day
of August, 1856, between her Britannic Majesty
and the Republic of Honduras, constituted and de
clared a free territory nnder the sovereignty of the
said Republic of Honduras," stipulated that " the
two contracting parties do hereby mutually en
gage to recognize and respect in all future time
tha independence and rights of the said free terri
tory as a part of the Republic of Honduras.".
Upon an examination of this convention be
tween Great Britain and Honduras, of the X7th
August, 1806, it was found that, whilst declaring
the Bay Islands to be "a free territory under tne
sovereignty of the Republic of Honduras,' it de
prived that Republic of rights without which its
sovereignty over them could scarcely be said to
exist. JU divided them from the remainder of Hon
duras, and gave to their inhabitants a separate
government of their own, with legislative, execu
tive and judicial officers, elected by themselves.
It deprived the government of Honduras of the
taxing power in every form, and exempted tbe
people of the Islands from the performance of mil
itary duty except for their own exclusive defence.
It also prohibited that Republic from erecting for-
tincations upon tnem tor tneir protection inns
leaving them open to invasion from any quarter;
and, finally, it provided " that slavery shall not.
at any time hereafter be permitted to exist there
in.
Had Honduras ratified this Convention, she would
nave ratified the estaoliahment of a State aaoatantiaHy
independent within her own limits, aad a State at aU
-times subject to British influence and control. More
over, had the United States ratified the treaty with
ureat uriiain in its original lonu, we snouia nave uen
bound to recognize and respect in all furore tune
these stipulations to the prejudice of Honduras. Being
In direct opposition to tbe f pint and meaning- or tne
t lajton and Bulwer treaty as understood in tne vnnea
Diaies, tae senate rejected tne entire clause, and sub
stituted in its stead a simple recognition of the sove
reign neni or Honduras to tbese islands, in the fellow
inv language : " The two contracting parties do hereby
mutually engage to recognize and respect the islands of
Hoaian, oouca, luis. Baroaretu, Helena, aad Mont,
situate in the Bay of Honduras, and off tbe coast of the
republic of Honduras, as under tbe sovereignty and as
part of the said republic of Honduras."'
Great Britain rejected hU amendment, assigning as
the only reason tbe ratifications of the convention of
tlie Zith August. 1856, between her and Honduras, bad
not been " exchanged, owing to the hesitation of that
government." Had this been done, it is stated that
"her Majesty's government would have had little diffi
culty in agreeing to the modification proposed by the
Senate, which then would have had in effect tbe same
signification as the original wording." Whether this
would have been the e fleet; whether the mere circum
stance ot the exchange of the ratification of the British
convention with Honduras prior in point of time to the
ratification of oar treaty with Great Britain would, "in
effect." have bad ' the same signification as the original
wording. ' and thus have nullified the amendment of the
Senate, may well be doubted. It is, perhaps, fortunate
tnat tne question nas never arisen.
The British Government, immediately after rejecting
the treaty as amended, proposed to enter int-i a new
treaty with the United States, similar in all respects to
the treaty whicht tbey had jut ref csed to ratify, if the
United States would consent to add to tbe Senate's clear
and onqua'ined recognition of the sovereignty of Hoc-
auras over tae nay islands tne following conditional
stipulation : "Whenever and so soon as the republic ol
Honduras shall have concluded and ratified a treaty
with Ureat Britain, by which Ureat Britain shall have
ceded, and the republic of Honduras shall have accepted
the said Islands, subject to the provisions and condi
tions contained in such treaty."1
This prKsition was of coarse rejected. After the
Senate had refused to recognize tbe British Convection
with Honduras of tbe STth. Angnst. 1856. with full
knowledge of its contents, it was impossible for me
necessarily ignorant of "tbe provisions and conditions'
which might be contained in a farther convention be
tween the same parties, to sanction them in advance.
The fact is, that when two nations like Ureat Britain
and the united States, mutually desirous, as they are
and I trust ever may be, of nuintaininir the most friend
ly rel&tions with each other, have onfortanately con
cluded a treaty which they nuderstand in sense directly
opposite, tne wisest course is to anrocate seen a treat;
by mutual consent, and to commence anew. Had this
been dune promptly, all di faculties in t'-entral America
would most probably ere this have been adjas-ted to tbe
satisfaction of both parties. The time spent ia dia
eusain; the meaning of the Clayton and Bulwer treaty,
win. 11 hare been devoted to this praiseworthy purpose
ana tae isse wouia nave teen tee more easily accom
plished because tbe interest o? the two countries in
Central America is luentical. being confined to eccr
ius safe transit oyer all the routes across the Isthmus.
Wnust entertaining tbese sentiments, I shall never
theless not refuse to contribute to any reasonable ad
justment of the Central American questions which is
pretation of the treaty. Overtures for this purpose bate
been recently made lij uie Kntisn gi-vemment in a
friendly spirit, which I cordially reciprocate ; but
whether this renewed effort win result in soccess I am
not yet prepared to express an opinion. A brief .period
will determine.
With France onr ancient relations of friendship stil!
continue to exist. The r return government have in sev
eral recent instances which need not be enumerated.
evinced a spirit of good will and kindness towards our
country which I heartily reciprocate. It is. notwith
standing, much to be regretted that two nations wbnee
productions are of sncb a character as to invite the
most extensive exchanges and freest commercial inter
course, should continue to enforce ancient and obseaete
restrictions of trade against each otner. Our commer
cial treaty with France is in this respect an exception
trora our treaties with all other commercial nations, it
jealously levies discriminating duties both on tonnaire
and on articles, the growth, produce, or manufacture of
tne one country, wnen arriving in vessels belonging to
tne otner.
More than forty years ago. on the 3d March. 1815
Coturreas passed an act offering to all nations to admit
their vessels laden with their Eational productions into
tbe ports of the United Stales upon the same terms
with our own vessels, provided they wonld reciprocate
to us similar advantages. The act confined the reci
procity to tbe productions of the respective foreign na
tions who might enter into the proposed arrangement
with the United States. The act of May 24, 18'iS. re
moved this restrictions, and offered a similar reciprocity
to all such vessels without reference to tbe origin of
theircargoes. L pon these principles, our commercial
treaties and arrangements nave been rounded, except
with France : and let as hope that this exception may
not long exist.
Our relations with Knssta remain, a they have ever
been, on the most friendly footing. The present Km
perui, as well as bis predecessor, have nevawyailed.
when the occasion offered, to manifest their gtWd will
to oar country : and their friendship has always been
huThly appreciated oy the government and people of
the United Mates.
With all other European governments, except that of
Spain, our relations are as peaceful as we could desire.
I regret to say that no progress whatever has been made
since theadjuornment of Congress, towards the settle
ment of any of the numerous claims of our citizens
against the Spanish government. Besides, the outrace
committed on our flag by the Spanish war-frigate Fer-
rolana on tne mgn seas, on the coast or Cuba, in March,
ISoo, by bring Into the American mail steamer El Do
rado, and detaining and searching her. remains unac
knowledged and unredressed. The general tone and
temper of the Spanish Government towards that of tbe
U nited Mates are much to be regretted. Onr "resent
Envoy Extraordinary and Minister Pleniooteuurlrv to
auno nas asKea to oe recaiiea : ana it is my pnrpose
to send out a new Minister to Spain, with special in
structions on all questions pending between the two
governments, and with a determination to have them
speedily and amicably adjusted, if this be possible. I
tne meantime. Whenever onr Minister urges tbe jnst
claims oi our citizens on tne notice of the Spanish
Uovernment, he is met with the objection that Congress
nave never made tne appropriation recommended Dy
President Polk in lis Annual Message of December,
1847. " to be paid to the Spanish Uovernment for tbe
pnrpose of distribution among the claimants ia the
Amistad case." A similar recommendation was made
by my immediate predecessor in his message of Decem
ber, 1853 ; and entirely concurring with "both in the
opinion that this indemnity is justly due nnder the
treaty with Spain of the 27th October, 179S, I earnestly
recommend such an appropriation to the favorable con
sideration of Congress.
A treaty of friendship and commerce was concluded
at Constantinople on the 13th December, 1IS59, between
the United States and Persia, the ratifications of which
were exchanged at Constantinople on tbe 13th June,
1837. and the treaty was proclaimed by tbe President
on the ltth August. 1857. This treaty jt is believed.
ill move heneriicial to American commerce. The
Shah has manifested aa earnest disposition to cultivate
frieaday relation -with onr country, and has expressed
a strong wish that we should be represented at Tberaa
by a Miuister Plenipotentiary: ana l recommena uuu
an appropriation be made for this purpose.
Recent occurrences in China have been unfavorable
to a revision of tbe treaty with that empire of the 3d
July, 1854. with a view to the security and extension of
. i .L!. ....... rfinnk.
our commerce, ineztui arucww iw j
ted for a revision of it in case experience should prove
this to be requisite "in which case the two governments
will, at the expiration of twelve years from the date of
said convention, treat amicably concerning the tame.
by means or suitable persona appointed to sich nego
tiations." These twelve years expired on ae 3d July,
uaiiona." intwHrareramciiiMcu u cne mjoij,
i85 : but long before that period it was ascertained
that important changes ia the treaty were necessary ; I
and several fruitless attempts were made by the coo-1
missioner of the fjnlted gtates to effect the changes.
Anotbsr effort was a.bout to be made for tbe purpose by
our commissioner, in conjunction with the Ministers of
England and France, bat tnis was suspenoea oy ine oc
currence of hostilities in tne canton luver oeiween
Great Britain and the Chinese Empire. These hostili- I
tia have necessarily Interrupted the trade of all na
tions with Ganton. which is now in a state of blockade.
and have occasioned a serious lossof life and property.
Meanwhile the .insurrection witbia tbe empire against
tbe existing imperial dynasty still continues, and it is
u nil cull to anticipate watt wut uc tne result.
Under these eirenmstances. I have deemed it advim.
hie to appoint a distinguished citizen of Penavlvuu
envoy extraordinary and minister plenipotentiary to
proceea to umna, ana to avail nimseir of any opportu
nities which may offer to effect chaoses in the
treaty favorable to -American commerce. Ha left th
United biates for the place of his destination in July
last in the war steamer Minesots. Special ministers to
China have also been appointed by the government of
Great Britma and France.
Whilst our minister has been instructed to occupy s
neutral position in reference to tbe existing hostilities
at Canton, be will cordially co-operate with the Brit
ish and French ministers in all peaceful measures to
secure by treaty stipulations, those just concessions
to commerce with the nations of the world have a
right to expect, and which China cannot long be per
mitted to withhold. From assurances received, 1 en
tertain no doubt that tbe three ministers will act in
harmonious concert to obtain similar commercial
treaties for each of tbe powers tbey represent.
We cannot fail to feel a deep interest in aU that '
concerns the welfare of tha independent republic oa.
our own continent, as well as of tbe empire of BrazU.
Our difficulties with New Granada, which a short
time siiice bore so threatniag an aspect, are, it is to
be hoped, in a fair train or settlement in a manner
jnst and honorable to both parties.
The Isthmus of Central America, including that of
Panama, is the great highway between the Atlantic
and Pacific, over which a large portion of the com
merce of the world is destined to pass. 1 he United
States are more deeply interested than any other na
tion in preserving th freedom and security of all the
communications across the isthmus, it g our doty,
therefore, to take care that tbey shall not be interrupt
ed either by invasions from our own country or by
trars between the independent States of Central A mrf
Ica. Under oar treaty with New Granada of tbe 12th
December, 1846, we are bound to guaranty then o
trality of the Isthmus of Panama, through which tbe
Panama railroad paases, "as well as the rights of sov
ereignty and property which New Granada haa and
possesses over the said Territory.1' This obligation at
toundediipon equivalents granted by tbe treaty to tha
Government and people of the United States.
Under tbese circumstances, I recommend to Con
gress the passage of an act authorizing the President,
incase of necessity, to employ the land and navar
forces of the United States to carry into effect thiar
guarantee of neutrality and protection. I also reeom-'
mend similar legislation for tbe security of any other'
route across the Isthmus in which we may acquire aa
interest by treaty. - -
With the independent republics on this continent it
is both our dnty and our interest to cultivate the most
friendly relations. We can never feel indifferent to
their fate, and must always rejoice in their prosperity.
Unfortunately, both for them and for as, our example
and advice have lost much cf their influence ia conse
quence of the lawless expeditions wfaiich have been
fitted out against some of them within tbe limits of our
country. Nothing is better eateclated to retard ear
stiadv material progress, or impair our character aa a
nation, than the te."fation of such enterprises in vio
lation of the law of milieus.
It is one of the first and highest duties or any inde
pendent State, in its relations with tbe members of the
great family of nations, to restrain its people from acta
of hostile ageression against their citizens or subjects
Tbe most eminent writers on public law do not netat
to denounce such hostile acts as robbery and murder
Weak and feeble States, tike those of Central Amer
ica, may not feel themselves able to assert and vindi
cate their rights. The case world be far different rf
expeditions were set on foot within our owa territories
to make private war against a powerful nation. If
such expeditions were fitted out fsera abroad:
against any portion of onr own country, to barn down
our citres, murder and plunder our people, as J owrp -our
O vernment, we should call any power on earth to
the strictest account for not preventing such enormities'
Ever since the administration of General Washing'
ton, acts of Congress have been in force to punish se
verely tbe crime of setting on foot a military expedi
tion within tbe limits of the United States, to proceed
from thence sgamst a nation or State with whom ve
in at peace. The present neutrality act of April 20th,.
ISIS, is but little more than a collection of pre-existing
laws. Under this act the President is empowered to
employ the land and naval forces and. the militia "for
tfce purpose of preventing the carrying on of any each
expedition r enterprise from the territories and Juris
diction ot the United States, 71 and the collectors of
customs are authorized and required to detain any
vessel in port when there is any reason, to believe she
is about to take part in such lawless enterprises.
When it was first rendered probable that an attempt
would be made to get up another unlawful expedition
anrinst Nicaranirua. tbe Secretary of State issued in
structions to the marshals and district attorneys, which
were directed by the Secretary of War and the Navy
to the appropriate army ana navy officers, reosirms;
them to be vigilant, ana to use tneu- pest exernons in
carrying into effect the provisions of the Act of 1813
NctwithstaBding tbese precautions, tbe expeditioB ha
escaped from our shores. Such enterprises can do no
possible good to use country, cut ca ajreaay mnicieoi
much injury both on its interests and its character
They have prevented peaceful emigration from tha
Coited States to- tbe States of Central America, which
could not fail to prove highly beneficial to all tbe par
ties concerned. In a pecuniary point alone, our citi-
aens nave sustained heavy losses trum tne seizure and
closing of the transit route by the San Joan, between
the two oceans.
The leader of the recent expedition waa arrested at .
JCew Orleans, but was discharged on giving bail fcr his
appearance in tbe insufiicient sum of two thousand dol
lars. -
I commend the whole subject to the serious attenticaar
of Congress, believing that our duty and our interest,
as wel 1 as our national character, require that we shonld
adopt such measures as will be effectaai in restraining
oar citizens from committing such ounare.
I regret to inform yon that the President of 1 ar-
agoav nas refused to raniy we rreary Between us
U nited States and that State as amended bv tho
Senate, the signature of which was mentioned in
tbe message of my predecessor, to Congress at the-
opening of its session in December, 1853. The
reasons assigned tor tuts refusal will appear- m the
correspondence herewith submitted.
It being desirable to ascertain tne ntness of tho
river La Plata and its tributaries for navigation
by steam, the United States steamer Water Witch
was sent thither for that pnrpose in 1353. This
enterprise was sucessfully carried on until Febru
ary ld55, when, whilst in the peaceful prosecution
of her voyage np the Parana river, the steamer
was fired upon by a t'aragtiayan fort. The fire
was returned; but as tho Water Witch waa of
small force, and not designed for offensive opera
tions, she retired from the conflict. Th pretext
npon which the attack was made, was a decree cf
the President of Paraguay of October 1853, pro
hibiting foreign vessels-of-war from navigating
tbe rivers of that State. ; As Paraguay, however,
was the owner of bat one bank of the river of
that name tie other belonging to Corrientes, a
State of the Argentine Confederation, the right of
its government to expect that such a decree wonld
be obeyed cannot be acknowledged. Bat the Wa
ter Witch was not, properly speaking, a vessel-of-war.
She was a small steamer engaged in a sci
entific enterprise intended for the advantage of
commercial Mates generally. Under these eir
enrastances, J am constrained to consider the at
tack npon her as nniastihable, and as calling for
satisfaction from the Paraguayan government.
Citizens of the u nited Mates, also, who were
established in business in Paraguay, have had
their property seized and taken from them, and
have otherwise been treated by the authorities in
on insulting and arbitrary manner, which requires,
redress.
A demand for these purposes will be made in a
firm but conciliatory spirit. This will the mora
probably be granted if. the -tiecutive shall hare
authority to use other means in the event of a re
fusal. This is accordingly recommended.
IComdmdtd xx ce.J .
The Washisgtox axd Oregon Ikdiaxs.
.We make the following extracts from the
report of the Secretary or the Interior :
The Indians ot ine xerritonesor Wash
ington and Oregon are still restive and bel
ligerent. Ibis disposition on tneir part evi
dently springs from disbelief in the strength
and ability of this government to punish,
them for trespasses committed upon onr set
tlements It is the dnty of the government.
to disabuse their minds. This can best be-
done by peaceful means. Let an appropria
tion be made to defray the expenses of a del-"
egation from each of the large tribes ia those
distant Territories, to Washington and oth
er eastern cities. Let them know by per
sonal observation, onr numbers, see onr im
provements, and estimate onr strength.
Tbey would readily conclude that farther
hostility wonld be absurd; and when they
carried the story of onr greatness and pow
er to their people, a change wonld come over
their minds, and we might then reasonably
hope for the establishment, by treaties, of
good understanding &nd perpetual peace be; .
tween ns. bucb an appropriation would, be-
in my judgment, an act cf true ecO0iCl,.:
Bbxak cp or Waixeb's Exr-swrios. We
take the following from the Panama Star:7
Tlie U. S. steamer frigate Wabash arrived
Dec 15th from San Juan.' On the 8th inst
the Wabash landed 250 men on tbe Point
Arenas.and captured Walker and his party.
He surrendered to Commodore Panldinsr.
. j , w. -
uPn "S summoned, without mating any
resistance. Forty-five of his men- ate Still
tuA o jn.n rrn,. o0- v.
P lne ?an u.aAr,Ter- i he Saratoga, har-
ing on board 139 officers and men. ef Walk
er's army, sailed for Norfolk on the 20th.
At 9 o'clock this morning. Gen. Walker
landed at Aspin wall.
Second Dispatch. The fifty men landed
at Colorado, went up to Castillo, cut ont a
steamer and boats ; the alarm, waa given by
the sentinel's firing. Walker' mea made a
rush for the Fort, aad found that the entire,
garrison had deserted it. ThJ came down
with the river steamer Morgan aad 40 pris
oners, aad arrived jus a tbe mea w-:r land'
ing from the Wabash.