Moreover--

No State shall without the consent of the Congress lay any imposts

or duties on imports or exports, except what may be absolutely

necessary for executing its inspection laws.

And if they exceed this amount the excess shall belong to the United

States. And--

No State shall without the consent of Congress lay any duty of

tonnage, keep troops or ships of war in time of peace, enter into

any agreement or compact with another State or with a foreign power,

or engage in war, unless actually invaded or in such imminent danger

as will not admit of delay.

In order still further to secure the uninterrupted exercise of these

high powers against State interposition, it is provided: that--

This Constitution and the laws of the United States which shall be

made in pursuance thereof, and all treaties made or which shall be

made under the authority of the United States, shall be the supreme

law of the land, and the judges in every State shall be bound

thereby, anything in the constitution or laws of any State to the

contrary notwithstanding.

The solemn sanction of religion has been superadded to the obligations

of official duty, and all Senators and Representatives of the United

States, all members of State legislatures, and all executive and

judicial officers, "both of the United States and of the several States,

shall be bound by oath or affirmation to support this Constitution."

In order to carry into effect these powers, the Constitution has

established a perfect Government in all its forms--legislative,

executive, and judicial; and this Government to the extent of its powers

acts directly upon the individual citizens of every State, and executes

its own decrees by the agency of its own officers. In this respect it

differs entirely from the Government under the old Confederation, which

was confined to making requisitions on the States in their sovereign

character. This left it in the discretion of each whether to obey or

to refuse, and they often declined to comply with such requisitions.

It thus became necessary for the purpose of removing this barrier and

"in order to form a more perfect union" to establish a Government which

could act directly upon the people and execute its own laws without the

intermediate agency of the States. This has been accomplished by the

Constitution of the United States. In short, the Government created by

the Constitution, and deriving its authority from the sovereign people

of each of the several States, has precisely the same right to exercise

its power over the people of all these States in the enumerated cases

that each one of them possesses over subjects not delegated to the

United States, but "reserved to the States respectively or to the

people."

To the extent of the delegated powers the Constitution of the United

States is as much a part of the constitution of each State and is as

binding upon its people as though it had been textually inserted

therein.

This Government, therefore, is a great and powerful Government, invested

with all the attributes of sovereignty over the special subjects to

which its authority extends. Its framers never intended to implant

in its bosom the seeds of its own destruction, nor were they at its

creation guilty of the absurdity of providing for its own dissolution.

It was not intended by its framers to be the baseless fabric of a

vision, which at the touch of the enchanter would vanish into thin air,

but a substantial and mighty fabric, capable of resisting the slow decay

of time and of defying the storms of ages. Indeed, well may the jealous

patriots of that day have indulged fears that a Government of such high

powers might violate the reserved rights of the States, and wisely did

they adopt the rule of a strict construction of these powers to prevent

the danger. But they did not fear, nor had they any reason to imagine,

that the Constitution would ever be so interpreted as to enable any

State by her own act, and without the consent of her sister States,

to discharge her people from all or any of their federal obligations.

It may be asked, then, Are the people of the States without redress

against the tyranny and oppression of the Federal Government? By no

means. The right of resistance on the part of the governed against

the oppression of their governments can not be denied. It exists

independently of all constitutions, and has been exercised at all

periods of the world's history. Under it old governments have been

destroyed and new ones have taken their place. It is embodied in strong

and express language in our own Declaration of Independence. But the

distinction must ever be observed that this is revolution against an

established government, and not a voluntary secession from it by virtue

of an inherent constitutional right. In short, let us look the danger

fairly in the face. Secession is neither more nor less than revolution.

It may or it may not be a justifiable revolution, but still it is

revolution.

What, in the meantime, is the responsibility and true position of the

Executive? He is bound by solemn oath, before God and the country,

"to take care that the laws be faithfully executed," and from this

obligation he can not be absolved by any human power. But what if

the performance of this duty, in whole or in part, has been rendered

impracticable by events over which he could have exercised no control?

Such at the present moment is the case throughout the State of South

Carolina so far as the laws of the United States to secure the

administration of justice by means of the Federal judiciary are

concerned. All the Federal officers within its limits through whose

agency alone these laws can be carried into execution have already

resigned. We no longer have a district judge, a district attorney,

or a marshal in South Carolina. In fact, the whole machinery of the

Federal Government necessary for the distribution of remedial justice

among the people has been demolished, and it would be difficult, if not

impossible, to replace it.

The only acts of Congress on the statute book bearing upon this subject

are those of February 28, 1795, and March 3, 1807. These authorize the

President, after he shall have ascertained that the marshal, with his

_posse comitatus_, is unable to execute civil or criminal process in

any particular case, to call forth the militia and employ the Army

and Navy to aid him in performing this service, having first by

proclamation commanded the insurgents "to disperse and retire peaceably

to their respective abodes within a limited time." This duty can not by

possibility be performed in a State where no judicial authority exists

to issue process, and where there is no marshal to execute it, and

where, even if there were such an officer, the entire population would

constitute one solid combination to resist him.

The bare enumeration of these provisions proves how inadequate they are

without further legislation to overcome a united opposition in a single

State, not to speak of other States who may place themselves in a

similar attitude. Congress alone has power to decide whether the present

laws can or can not be amended so as to carry out more effectually the

objects of the Constitution.

The same insuperable obstacles do not lie in the way of executing the

laws for the collection of the customs. The revenue still continues to

be collected as heretofore at the custom-house in Charleston, and should

the collector unfortunately resign a successor may be appointed to

perform this duty.

Then, in regard to the property of the United States in South Carolina.

This has been purchased for a fair equivalent, "by the consent of the

legislature of the State," "for the erection of forts, magazines,

arsenals," etc., and over these the authority "to exercise exclusive

legislation" has been expressly granted by the Constitution to Congress.

It is not believed that any attempt will be made to expel the United

States from this property by force; but if in this I should prove to be

mistaken, the officer in command of the forts has received orders to act

strictly on the defensive. In such a contingency the responsibility for

consequences would rightfully rest upon the heads of the assailants.

Apart from the execution of the laws, so far as this may be practicable,

the Executive has no authority to decide what shall be the relations

between the Federal Government and South Carolina. He has been invested

with no such discretion. He possesses no power to change the relations

heretofore existing between them, much less to acknowledge the

independence of that State. This would be to invest a mere executive

officer with the power of recognizing the dissolution of the confederacy

among our thirty-three sovereign States. It bears no resemblance to the

recognition of a foreign _de facto_ government, involving no such

responsibility. Any attempt to do this would, on his part, be a naked

act of usurpation. It is therefore my duty to submit to Congress the

whole question in all its bearings. The course of events is so rapidly

hastening forward that the emergency may soon arise when you may be

called upon to decide the momentous question whether you possess the

power by force of arms to compel a State to remain in the Union.

I should feel myself recreant to my duty were I not to express an

opinion on this important subject.

The question fairly stated is, Has the Constitution delegated to

Congress the power to coerce a State into submission which is attempting

to withdraw or has actually withdrawn from the Confederacy? If answered

in the affirmative, it must be on the principle that the power has been

conferred upon Congress to declare and to make war against a State.

After much serious reflection I have arrived at the conclusion that no

such power has been delegated to Congress or to any other department

of the Federal Government. It is manifest upon an inspection of the

Constitution that this is not among the specific and enumerated powers

granted to Congress, and it is equally apparent that its exercise is

not "necessary and proper for carrying into execution" any one of these

powers. So far from this power having been delegated to Congress, it was

expressly refused by the Convention which framed the Constitution. It

appears from the proceedings of that body that on the 31st May, 1787,

the clause "_authorizing an exertion of the force of the whole against

a delinquent State_" came up for consideration. Mr. Madison opposed it

in a brief but powerful speech, from which I shall extract but a single

sentence. He observed:

The use of force against a State would look more like a declaration

of war than an infliction of punishment, and would probably be

considered by the party attacked as a dissolution of all previous

compacts by which it might be bound.

Upon his motion the clause was unanimously postponed, and was never,

I believe, again presented. Soon afterwards, on the 8th June, 1787,

when incidentally adverting to the subject, he said: "Any government

for the United States formed on the supposed practicability of using

force against the unconstitutional proceedings of the States would

prove as visionary and fallacious as the government of Congress,"

evidently meaning the then existing Congress of the old Confederation.

Without descending to particulars, it may be safely asserted that the

power to make war against a State is at variance with the whole spirit

and intent of the Constitution. Suppose such a war should result in the

conquest of a State; how are we to govern it afterwards? Shall we hold

it as a province and govern it by despotic power? In the nature of

things, we could not by physical force control the will of the people

and compel them to elect Senators and Representatives to Congress and

to perform all the other duties depending upon their own volition and

required from the free citizens of a free State as a constituent member

of the Confederacy.

But if we possessed this power, would it be wise to exercise it under

existing circumstances? The object would doubtless be to preserve the

Union. War would not only present the most effectual means of destroying

it, but would vanish all hope of its peaceable reconstruction. Besides,

in the fraternal conflict a vast amount of blood and treasure would be

expended, rendering future reconciliation between the States impossible.

In the meantime, who can foretell what would be the sufferings and

privations of the people during its existence?

The fact is that our Union rests upon public opinion, and can never be

cemented by the blood of its citizens shed in civil war. If it can not

live in the affections of the people, it must one day perish. Congress

possesses many means of preserving it by conciliation, but the sword was

not placed in their hand to preserve it by force.

But may I be permitted solemnly to invoke my countrymen to pause and

deliberate before they determine to destroy this the grandest temple

which has ever been dedicated to human freedom since the world began?

It has been consecrated by the blood of our fathers, by the glories of

the past, and by the hopes of the future. The Union has already made us

the most prosperous, and ere long will, if preserved, render us the most

powerful, nation on the face of the earth. In every foreign region of

the globe the title of American citizen is held in the highest respect,

and when pronounced in a foreign land it causes the hearts of our

countrymen to swell with honest pride. Surely when we reach the brink

of the yawning abyss we shall recoil with horror from the last fatal

plunge.

By such a dread catastrophe the hopes of the friends of freedom

throughout the world would be destroyed, and a long night of leaden

despotism would enshroud the nations. Our example for more than eighty

years would not only be lost, but it would be quoted as a conclusive

proof that man is unfit for self-government.

It is not every wrong--nay, it is not every grievous wrong--which

can justify a resort to such a fearful alternative. This ought to be

the last desperate remedy of a despairing people, after every other

constitutional means of conciliation had been exhausted. We should

reflect that under this free Government there is an incessant ebb and

flow in public opinion. The slavery question, like everything human,

will have its day. I firmly believe that it has reached and passed the

culminating point. But if in the midst of the existing excitement the

Union shall perish, the evil may then become irreparable.

Congress can contribute much to avert it by proposing and recommending

to the legislatures of the several States the remedy for existing evils

which the Constitution has itself provided for its own preservation.

This has been tried at different critical periods of our history, and

always with eminent success. It is to be found in the fifth article,

providing for its own amendment. Under this article amendments have

been proposed by two-thirds of both Houses of Congress, and have been

"ratified by the legislatures of three-fourths of the several States,"

and have consequently become parts of the Constitution. To this process

the country is indebted for the clause prohibiting Congress from passing

any law respecting an establishment of religion or abridging the freedom

of speech or of the press or of the right of petition. To this we

are also indebted for the bill of rights which secures the people

against any abuse of power by the Federal Government. Such were the

apprehensions justly entertained by the friends of State rights at

that period as to have rendered it extremely doubtful whether the

Constitution could have long survived without those amendments.

Again the Constitution was amended by the same process, after the

election of President Jefferson by the House of Representatives, in

February, 1803. This amendment was rendered necessary to prevent a

recurrence of the dangers which had seriously threatened the existence

of the Government during the pendency of that election. The article

for its own amendment was intended to secure the amicable adjustment

of conflicting constitutional questions like the present which might

arise between the governments of the States and that of the United

States. This appears from contemporaneous history. In this connection

I shall merely call attention to a few sentences in Mr. Madison's

justly celebrated report, in 1799, to the legislature of Virginia.

In this he ably and conclusively defended the resolutions of the

preceding legislature against the strictures of several other State

legislatures. These were mainly founded upon the protest of the Virginia

legislature against the "alien and sedition acts," as "palpable and

alarming infractions of the Constitution." In pointing out the peaceful

and constitutional remedies--and he referred to none other--to which the

States were authorized to resort on such occasions, he concludes by

saying that--

The legislatures of the States might have made a direct representation

to Congress with a view to obtain a rescinding of the two offensive

acts, or they might have represented to their respective Senators

in Congress their wish that two-thirds thereof would propose an

explanatory amendment to the Constitution; or two-thirds of themselves,

if such had been their option, might by an application to Congress

have obtained a convention for the same object.

This is the very course which I earnestly recommend in order to

obtain an "explanatory amendment" of the Constitution on the subject of

slavery. This might originate with Congress or the State legislatures,

as may be deemed most advisable to attain the object. The explanatory

amendment might be confined to the final settlement of the true

construction of the Constitution on three special points:

1. An express recognition of the right of property in slaves in the

States where it now exists or may hereafter exist.

2. The duty of protecting this right in all the common Territories

throughout their Territorial existence, and until they shall be

admitted as States into the Union, with or without slavery, as their

constitutions may prescribe.

3. A like recognition of the right of the master to have his slave who

has escaped from one State to another restored and "delivered up" to

him, and of the validity of the fugitive-slave law enacted for this

purpose, together with a declaration that all State laws impairing

or defeating this right are violations of the Constitution, and are

consequently null and void. It may be objected that this construction of

the Constitution has already been settled by the Supreme Court of the

United States, and what more ought to be required? The answer is that a

very large proportion of the people of the United States still contest

the correctness of this decision, and never will cease from agitation

and admit its binding force until clearly established by the people of

the several States in their sovereign character. Such an explanatory

amendment would, it is believed, forever terminate the existing

dissensions, and restore peace and harmony among the States.

It ought not to be doubted that such an appeal to the arbitrament

established by the Constitution itself would be received with favor by

all the States of the Confederacy. In any event, it ought to be tried

in a spirit of conciliation before any of these States shall separate

themselves from the Union.

When I entered upon the duties of the Presidential office, the aspect

neither of our foreign nor domestic affairs was at all satisfactory.

We were involved in dangerous complications with several nations,

and two of our Territories were in a state of revolution against the

Government. A restoration of the African slave trade had numerous and

powerful advocates. Unlawful military expeditions were countenanced by

many of our citizens, and were suffered, in defiance of the efforts of

the Government, to escape from our shores for the purpose of making war

upon the unoffending people of neighboring republics with whom we were

at peace. In addition to these and other difficulties, we experienced

a revulsion in monetary affairs soon after my advent to power of

unexampled severity and of ruinous consequences to all the great

interests of the country. When we take a retrospect of what was then

our condition and contrast this with its material prosperity at the

time of the late Presidential election, we have abundant reason to

return our grateful thanks to that merciful Providence which has never

forsaken us as a nation in all our past trials.

Our relations with Great Britain are of the most friendly character.

Since the commencement of my Administration the two dangerous questions

arising from the Clayton and Bulwer treaty and from the right of search

claimed by the British Government have been amicably and honorably

adjusted.

The discordant constructions of the Clayton and Bulwer treaty between

the two Governments, which at different periods of the discussion bore

a threatening aspect, have resulted in a final settlement entirely

satisfactory to this Government. In my last annual message I informed

Congress that the British Government had not then "completed treaty

arrangements with the Republics of Honduras and Nicaragua in pursuance

of the understanding between the two Governments. It is, nevertheless,

confidently expected that this good work will ere long be accomplished."

This confident expectation has since been fulfilled. Her Britannic

Majesty concluded a treaty with Honduras on the 28th November, 1859,

and with Nicaragua on the 28th August, 1860, relinquishing the Mosquito

protectorate. Besides, by the former the Bay Islands are recognized

as a part of the Republic of Honduras. It may be observed that the

stipulations of these treaties conform in every important particular

to the amendments adopted by the Senate of the United States to the

treaty concluded at London on the 17th October, 1856, between the two

Governments. It will be recollected that this treaty was rejected by the

British Government because of its objection to the just and important

amendment of the Senate to the article relating to Ruatan and the other

islands in the Bay of Honduras.

It must be a source of sincere satisfaction to all classes of our

fellow-citizens, and especially to those engaged in foreign commerce,

that the claim on the part of Great Britain forcibly to visit and search

American merchant vessels on the high seas in time of peace has been

abandoned. This was by far the most dangerous question to the peace of

the two countries which has existed since the War of 1812. Whilst it

remained open they might at any moment have been precipitated into a

war. This was rendered manifest by the exasperated state of public

feeling throughout our entire country produced by the forcible search of

American merchant vessels by British cruisers on the coast of Cuba in

the spring of 1858. The American people hailed with general acclaim the

orders of the Secretary of the Navy to our naval force in the Gulf of

Mexico "to protect all vessels of the United States on the high seas

from search or detention by the vessels of war of any other nation."

These orders might have produced an immediate collision between the

naval forces of the two countries. This was most fortunately prevented

by an appeal to the justice of Great Britain and to the law of nations

as expounded by her own most eminent jurists.

The only question of any importance which still remains open is the

disputed title between the two Governments to the island of San Juan,

in the vicinity of Washington Territory. As this question is still

under negotiation, it is not deemed advisable at the present moment

to make any other allusion to the subject.

The recent visit of the Prince of Wales, in a private character, to the

people of this country has proved to be a most auspicious event. In its

consequences it can not fail to increase the kindred and kindly feelings

which I trust may ever actuate the Government and people of both

countries in their political and social intercourse with each other.

With France, our ancient and powerful ally, our relations continue

to be of the most friendly character. A decision has recently been

made by a French judicial tribunal, with the approbation of the Imperial

Government, which can not fail to foster the sentiments of mutual

regard that have so long existed between the two countries. Under the

French law no person can serve in the armies of France unless he be

a French citizen. The law of France recognizing the natural right of

expatriation, it follows as a necessary consequence that a Frenchman by

the fact of having become a citizen of the United States has changed his

allegiance and has lost his native character. He can not therefore be

compelled to serve in the French armies in case he should return to his

native country. These principles were announced in 1852 by the French

minister of war and in two late cases have been confirmed by the French

judiciary. In these, two natives of France have been discharged from

the French army because they had become American citizens. To employ

the language of our present minister to France, who has rendered good

service on this occasion, "I do not think our French naturalized

fellow-citizens will hereafter experience much annoyance on this

subject,"

I venture to predict that the time is not far distant when the other

continental powers will adopt the same wise and just policy which has

done so much honor to the enlightened Government of the Emperor. In any

event, our Government is bound to protect the rights of our naturalized

citizens everywhere to the same extent as though they had drawn their

first breath in this country. We can recognize no distinction between

our native and naturalized citizens.

Between the great Empire of Russia and the United States the mutual

friendship and regard which has so long existed still continues to

prevail, and if possible to increase. Indeed, our relations with that

Empire are all that we could desire. Our relations with Spain are now

of a more complicated, though less dangerous, character than they have

been for many years. Our citizens have long held and continue to hold

numerous claims against the Spanish Government. These had been ably

urged for a series of years by our successive diplomatic representatives

at Madrid, but without obtaining redress. The Spanish Government finally

agreed to institute a joint commission for the adjustment of these

claims, and on the 5th day of March, 1860, concluded a convention for

this purpose with our present minister at Madrid.

Under this convention what have been denominated the "Cuban claims,"

amounting to $128,635.54, in which more than 100 of our fellow-citizens

are interested, were recognized, and the Spanish Government agreed to

pay $100,000 of this amount "within three months following the exchange

of ratifications." The payment of the remaining $28,635.54 was to await

the decision of the commissioners for or against the _Amistad_ claim;

but in any event the balance was to be paid to the claimants either by

Spain or the United States. These terms, I have every reason to know,

are highly satisfactory to the holders of the Cuban claims. Indeed, they

have made a formal offer authorizing the State Department to settle

these claims and to deduct the amount of the _Amistad_ claim from the

sums which they are entitled to receive from Spain. This offer, of

course, can not be accepted. All other claims of citizens of the United

States against Spain, or the subjects of the Queen of Spain against the

United States, including the _Amistad_ claim, were by this convention

referred to a board of commissioners in the usual form. Neither the

validity of the _Amistad_ claim nor of any other claim against either

party, with the single exception of the Cuban claims, was recognized

by the convention. Indeed, the Spanish Government did not insist

that the validity of the _Amistad_ claim should be thus recognized,

notwithstanding its payment had been recommended to Congress by two

of my predecessors, as well as by myself, and an appropriation for

that purpose had passed the Senate of the United States.

They were content that it should be submitted to the board for

examination and decision like the other claims. Both Governments were

bound respectively to pay the amounts awarded to the several claimants

"at such times and places as may be fixed by and according to the tenor

of said awards."

I transmitted this convention to the Senate for their constitutional

action on the 3d of May, 1860, and on the 27th of the succeeding June

they determined that they would "not advise and consent" to its

ratification.

These proceedings place our relations with Spain in an awkward and

embarrassing position. It is more than probable that the final

adjustment of these claims will devolve upon my successor.

I reiterate the recommendation contained in my annual message of

December, 1858, and repeated in that of December, 1859, in favor of the

acquisition of Cuba from Spain by fair purchase. I firmly believe that

such an acquisition would contribute essentially to the well-being

and prosperity of both countries in all future time, as well as prove

the certain means of immediately abolishing the African slave trade

throughout the world. I would not repeat this recommendation upon the

present occasion if I believed that the transfer of Cuba to the United

States upon conditions highly favorable to Spain could justly tarnish

the national honor of the proud and ancient Spanish monarchy. Surely no

person ever attributed to the first Napoleon a disregard of the national

honor of France for transferring Louisiana to the United States for

a fair equivalent, both in money and commercial advantages.

With the Emperor of Austria and the remaining continental powers of

Europe, including that of the Sultan, our relations continue to be of

the most friendly character.

The friendly and peaceful policy pursued by the Government of the United

States toward the Empire of China has produced the most satisfactory

results. The treaty of Tien-tsin of the 18th June, 1858, has been

faithfully observed by the Chinese authorities. The convention of the

8th November, 1858, supplementary to this treaty, for the adjustment

and satisfaction of the claims of our citizens on China referred to in

my last annual message, has been already carried into effect so far as

this was practicable. Under this convention the sum of 500,000 taels,

equal to about $700,000, was stipulated to be paid in satisfaction of

the claims of American citizens out of the one-fifth of the receipts

for tonnage, import, and export duties on American vessels at the ports

of Canton, Shanghai, and Fuchau, and it was "agreed that this amount

shall be in full liquidation of all claims of American citizens at the

various ports to this date." Debentures for this amount, to wit, 300,000

taels for Canton, 100,000 for Shanghai, and 100,000 for Fuchau, were

delivered, according to the terms of the convention, by the respective

Chinese collectors of the customs of these ports to the agent selected

by our minister to receive the same. Since that time the claims of our

citizens have been adjusted by the board of commissioners appointed for

that purpose under the act of March 3, 1859, and their awards, which

proved satisfactory to the claimants, have been approved by our

minister. In the aggregate they amount to the sum of $498,694.78. The

claimants have already received a large proportion of the sums awarded

to them out of the fund provided, and it is confidently expected that

the remainder will ere long be entirely paid. After the awards shall

have been satisfied there will remain a surplus of more than $200,000

at the disposition of Congress. As this will, in equity, belong to the

Chinese Government, would not justice require its appropriation to some

benevolent object in which the Chinese may be specially interested?

Our minister to China, in obedience to his instructions, has remained

perfectly neutral in the war between Great Britain and France and the

Chinese Empire, although, in conjunction with the Russian minister, he

was ever ready and willing, had the opportunity offered, to employ his

good offices in restoring peace between the parties. It is but an act of

simple justice, both to our present minister and his predecessor, to

state that they have proved fully equal to the delicate, trying, and

responsible positions in which they have on different occasions been

placed.

The ratifications of the treaty with Japan concluded at Yeddo on the

29th July, 1858, were exchanged at Washington on the 22d May last, and

the treaty itself was proclaimed on the succeeding day. There is good

reason to expect that under its protection and influence our trade and

intercourse with that distant and interesting people will rapidly

increase.

The ratifications of the treaty were exchanged with unusual

solemnity. For this purpose the Tycoon had accredited three of his

most distinguished subjects as envoys extraordinary and ministers

plenipotentiary, who were received and treated with marked distinction

and kindness, both by the Government and people of the United States.

There is every reason to believe that they have returned to their native

land entirely satisfied with their visit and inspired by the most

friendly feelings for our country. Let us ardently hope, in the language

of the treaty itself, that "there shall henceforward be perpetual peace

and friendship between the United States of America and His Majesty the

Tycoon of Japan and his successors."

With the wise, conservative, and liberal Government of the Empire of

Brazil our relations continue to be of the most amicable character.

The exchange of the ratifications of the convention with the Republic

of New Granada signed at Washington on the 10th of September, 1857, has

been long delayed from accidental causes for which neither party is

censurable. These ratifications were duly exchanged in this city on the

5th of November last. Thus has a controversy been amicably terminated

which had become so serious at the period of my inauguration as to

require me, on the 17th of April, 1857, to direct our minister to demand

his passports and return to the United States.

Under this convention the Government of New Granada has specially

acknowledged itself to be responsible to our citizens "for damages

which were caused by the riot at Panama on the 15th April, 1856." These

claims, together with other claims of our citizens which had been long

urged in vain, are referred for adjustment to a board of commissioners.

I submit a copy of the convention to Congress, and recommend the

legislation necessary to carry it into effect.

Persevering efforts have been made for the adjustment of the claims

of American citizens against the Government of Costa Rica, and I am

happy to inform you that these have finally prevailed. A convention was

signed at the city of San Jose on the 2d July last, between the minister

resident of the United States in Costa Rica and the plenipotentiaries of

that Republic, referring these claims to a board of commissioners and

providing for the payment of their awards. This convention will be

submitted immediately to the Senate for their constitutional action.

The claims of our citizens upon the Republic of Nicaragua have not yet

been provided for by treaty, although diligent efforts for this purpose

have been made by our minister resident to that Republic. These are

still continued, with a fair prospect of success.

Our relations with Mexico remain in a most unsatisfactory condition.

In my last two annual messages I discussed extensively the subject of

these relations, and do not now propose to repeat at length the facts

and arguments then presented. They proved conclusively that our citizens

residing in Mexico and our merchants trading thereto had suffered a

series of wrongs and outrages such as we have never patiently borne from

any other nation. For these our successive ministers, invoking the faith

of treaties, had in the name of their country persistently demanded

redress and indemnification, but without the slightest effect. Indeed,

so confident had the Mexican authorities become of our patient endurance

that they universally believed they might commit these outrages upon

American citizens with absolute impunity. Thus wrote our minister in

1856, and expressed the opinion that "nothing but a manifestation of

the power of the Government and of its purpose to punish these wrongs

will avail."

Afterwards, in 1857, came the adoption of a new constitution for Mexico,

the election of a President and Congress under its provisions, and the

inauguration of the President. Within one short month, however, this

President was expelled from the capital by a rebellion in the army, and

the supreme power of the Republic was assigned to General Zuloaga. This

usurper was in his turn soon compelled to retire and give place to

General Miramon.

Under the constitution which had thus been adopted Señor Juarez, as

chief justice of the supreme court, became the lawful President of the

Republic, and it was for the maintenance of the constitution and his

authority derived from it that the civil war commenced and still

continues to be prosecuted.

Throughout the year 1858 the constitutional party grew stronger and

stronger. In the previous history of Mexico a successful military

revolution at the capital had almost universally been the signal for

submission throughout the Republic. Not so on the present occasion.

A majority of the citizens persistently sustained the constitutional

Government. When this was recognized, in April, 1859, by the Government

of the United States, its authority extended over a large majority of

the Mexican States and people, including Vera Cruz and all the other

important seaports of the Republic. From that period our commerce with

Mexico began to revive, and the constitutional Government has afforded

it all the protection in its power.

Meanwhile the Government of Miramon still held sway at the capital and

over the surrounding country, and continued its outrages against the

few American citizens who still had the courage to remain within its

power. To cap the climax, after the battle of Tacubaya, in April, 1859,

General Marquez ordered three citizens of the United States, two of them

physicians, to be seized in the hospital at that place, taken out and

shot, without crime and without trial. This was done, notwithstanding

our unfortunate countrymen were at the moment engaged in the holy cause

of affording relief to the soldiers of both parties who had been wounded

in the battle, without making any distinction between them.

The time had arrived, in my opinion, when this Government was bound

to exert its power to avenge and redress the wrongs of our citizens

and to afford them protection in Mexico. The interposing obstacle was

that the portion of the country under the sway of Miramon could not be

reached without passing over territory under the jurisdiction of the

constitutional Government. Under these circumstances I deemed it my duty

to recommend to Congress in my last annual message the employment of

a sufficient military force to penetrate into the interior, where the

Government of Miramon was to be found, with or, if need be, without the

consent of the Juarez Government, though it was not doubted that this

consent could be obtained. Never have I had a clearer conviction on

any subject than of the justice as well as wisdom of such a policy.

No other alternative was left except the entire abandonment of our

fellow-citizens who had gone to Mexico under the faith of treaties

to the systematic injustice, cruelty, and oppression of Miramon's

Government. Besides, it is almost certain that the simple authority

to employ this force would of itself have accomplished all our objects

without striking a single blow. The constitutional Government would then

ere this have been established at the City of Mexico, and would have

been ready and willing to the extent of its ability to do us justice.

In addition--and I deem this a most important consideration--European

Governments would have been deprived of all pretext to interfere in the

territorial and domestic concerns of Mexico. We should thus have been

relieved from the obligation of resisting, even by force should this

become necessary, any attempt by these Governments to deprive our

neighboring Republic of portions of her territory--a duty from which

we could not shrink without abandoning the traditional and established

policy of the American people. I am happy to observe that, firmly

relying upon the justice and good faith of these Governments, there

is no present danger that such a contingency will happen.

Having discovered that my recommendations would not be sustained by

Congress, the next alternative was to accomplish in some degree,

if possible, the same objects by treaty stipulations with the

constitutional Government. Such treaties were accordingly concluded

by our late able and excellent minister to Mexico, and on the 4th of

January last were submitted to the Senate for ratification. As these

have not yet received the final action of that body, it would be

improper for me to present a detailed statement of their provisions.

Still, I may be permitted to express the opinion in advance that they

are calculated to promote the agricultural, manufacturing, and

commercial interests of the country and to secure our just influence

with an adjoining Republic as to whose fortunes and fate we can never

feel indifferent, whilst at the same time they provide for the payment

of a considerable amount toward the satisfaction of the claims of our

injured fellow-citizens.

At the period of my inauguration I was confronted in Kansas by a

revolutionary government existing under what is called the "Topeka

constitution." Its avowed object was to subdue the Territorial

government by force and to inaugurate what was called the "Topeka

government" in its stead. To accomplish this object an extensive

military organization was formed, and its command intrusted to the most

violent revolutionary leaders. Under these circumstances it became my

imperative duty to exert the whole constitutional power of the Executive

to prevent the flames of civil war from again raging in Kansas, which in

the excited state of the public mind, both North and South, might have

extended into the neighboring States. The hostile parties in Kansas had

been inflamed against each other by emissaries both from the North and

the South to a degree of malignity without parallel in our history.

To prevent actual collision and to assist the civil magistrates in

enforcing the laws, a strong detachment of the Army was stationed in

the Territory, ready to aid the marshal and his deputies when lawfully

called upon as a _posse comilatus_ in the execution of civil and

criminal process. Still, the troubles in Kansas could not have been

permanently settled without an election by the people.

The ballot box is the surest arbiter of disputes among freemen. Under

this conviction every proper effort was employed to induce the hostile

parties to vote at the election of delegates to frame a State

constitution, and afterwards at the election to decide whether Kansas

should be a slave or free State.

The insurgent party refused to vote at either, lest this might be

considered a recognition on their part of the Territorial government

established by Congress. A better spirit, however, seemed soon after

to prevail, and the two parties met face to face at the third election,

held on the first Monday of January, 1858, for members of the

legislature and State officers under the Lecompton constitution. The

result was the triumph of the antislavery party at the polls. This

decision of the ballot box proved clearly that this party were in the

majority, and removed the danger of civil war. From that time we have

heard little or nothing of the Topeka government, and all serious danger

of revolutionary troubles in Kansas was then at an end.

The Lecompton constitution, which had been thus recognized at this State

election by the votes of both political parties in Kansas, was

transmitted to me with the request that I should present it to Congress.

This I could not have refused to do without violating my clearest and

strongest convictions of duty. The constitution and all the proceedings

which preceded and followed its formation were fair and regular on their

face. I then believed, and experience has proved, that the interests of

the people of Kansas would have been best consulted by its admission

as a State into the Union, especially as the majority within a brief

period could have amended the constitution according to their will and

pleasure. If fraud existed in all or any of these proceedings, it was

not for the President but for Congress to investigate and determine the

question of fraud and what ought to be its consequences. If at the first

two elections the majority refused to vote, it can not be pretended

that this refusal to exercise the elective franchise could invalidate

an election fairly held under lawful authority, even if they had not

subsequently voted at the third election. It is true that the whole

constitution had not been submitted to the people, as I always desired;

but the precedents are numerous of the admission of States into the

Union without such submission. It would not comport with my present

purpose to review the proceedings of Congress upon the Lecompton

constitution. It is sufficient to observe that their final action has

removed the last vestige of serious revolutionary troubles. The

desperate band recently assembled under a notorious outlaw in the

southern portion of the Territory to resist the execution of the laws

and to plunder peaceful citizens will, I doubt not, be speedily subdued

and brought to justice.

Had I treated the Lecompton constitution as a nullity and refused

to transmit it to Congress, it is not difficult to imagine, whilst

recalling the position of the country at that moment, what would have

been the disastrous consequences, both in and out of the Territory,

from such a dereliction of duty on the part of the Executive.

Peace has also been restored within the Territory of Utah, which at the

commencement of my Administration was in a state of open rebellion. This

was the more dangerous, as the people, animated by a fanatical spirit

and intrenched within their distant mountain fastnesses, might have made

a long and formidable resistance. Cost what it might, it was necessary

to bring them into subjection to the Constitution and the laws. Sound

policy, therefore, as well as humanity, required that this object should

if possible be accomplished without the effusion of blood. This could

only be effected by sending a military force into the Territory

sufficiently strong to convince the people that resistance would be

hopeless, and at the same time to offer them a pardon for past offenses

on condition of immediate submission to the Government. This policy was

pursued with eminent success, and the only cause for regret is the heavy

expenditure required to march a large detachment of the Army to that

remote region and to furnish it subsistence.

Utah is now comparatively peaceful and quiet, and the military force has

been withdrawn, except that portion of it necessary to keep the Indians

in check and to protect the emigrant trains on their way to our Pacific

possessions.

In my first annual message I promised to employ my best exertions in

cooperation with Congress to reduce the expenditures of the Government

within the limits of a wise and judicious economy. An overflowing

Treasury had produced habits of prodigality and extravagance which could

only be gradually corrected. The work required both time and patience.

I applied myself diligently to this task from the beginning and was

aided by the able and energetic efforts of the heads of the different

Executive Departments. The result of our labors in this good cause did

not appear in the sum total of our expenditures for the first two years,

mainly in consequence of the extraordinary expenditure necessarily

incurred in the Utah expedition and the very large amount of the

contingent expenses of Congress during this period. These greatly

exceeded the pay and mileage of the members. For the year ending June

30, 1858, whilst the pay and mileage amounted to $1,490,214, the

contingent expenses rose to $2,093,309.79; and for the year ending

June 30, 1859, whilst the pay and mileage amounted to $859,093.66, the

contingent expenses amounted to $1,431,565.78. I am happy, however,

to be able to inform you that during the last fiscal year, ending

June 30, 1860, the total expenditures of the Government in all its

branches--legislative, executive, and judicial--exclusive of the public

debt, were reduced to the sum of $55,402,465.46. This conclusively

appears from the books of the Treasury. In the year ending June 30,

1858, the total expenditure, exclusive of the public debt, amounted

to $71,901,129.77, and that for the year ending June 30, 1859, to

$66,346,226.13. Whilst the books of the Treasury show an actual

expenditure of $59,848,474.72 for the year ending June 30, 1860,

including $1,040,667.71 for the contingent expenses of Congress, there

must be deducted from this amount the sum of $4,296,009.26, with the

interest upon it of $150,000, appropriated by the act of February 15,

1860, "for the purpose of supplying the deficiency in the revenues and

defraying the expenses of the Post-Office Department for the year ending

June 30, 1859." This sum, therefore, justly chargeable to the year 1859,

must be deducted from the sum of $59,848,474.72 in order to ascertain

the expenditure for the year ending June 30, 1860, which leaves a

balance for the expenditures of that year of $55,402,465.46. The

interest on the public debt, including Treasury notes, for the same

fiscal year, ending June 30, 1860, amounted to $3,177,314.62, which,

added to the above sum of $55,402,465.46, makes the aggregate

of $58,579,780.08.

It ought in justice to be observed that several of the estimates from

the Departments for the year ending June 30, 1860, were reduced by

Congress below what was and still is deemed compatible with the public

interest. Allowing a liberal margin of $2,500,000 for this reduction and

for other causes, it may be safely asserted that the sum of $61,000,000,

or, at the most, $62,000,000, is amply sufficient to administer the

Government and to pay the interest on the public debt, unless contingent

events should hereafter render extraordinary expenditures necessary.

This result has been attained in a considerable degree by the care

exercised by the appropriate Departments in entering into public

contracts. I have myself never interfered with the award of any such

contract, except in a single case, with the Colonization Society,

deeming it advisable to cast the whole responsibility in each case on

the proper head of the Department, with the general instruction that

these contracts should always be given to the lowest and best bidder.

It has ever been my opinion that public contracts are not a legitimate

source of patronage to be conferred upon personal or political

favorites, but that in all such cases a public officer is bound to

act for the Government as a prudent individual would act for himself.

It is with great satisfaction I communicate the fact that since the date

of my last annual message not a single slave has been imported into

the United States in violation of the laws prohibiting the African

slave trade. This statement is founded upon a thorough examination and

investigation of the subject. Indeed, the spirit which prevailed some

time since among a portion of our fellow-citizens in favor of this

trade seems to have entirely subsided.

I also congratulate you upon the public sentiment which now exists

against the crime of setting on foot military expeditions within the

limits of the United States to proceed from thence and make war upon

the people of unoffending States with whom we are at peace. In this

respect a happy change has been effected since the commencement of my

Administration. It surely ought to be the prayer of every Christian

and patriot that such expeditions may never again receive countenance

in our country or depart from our shores.

It would be a useless repetition to do more than refer with earnest

commendation to my former recommendations in favor of the Pacific

railroad; of the grant of power to the President to employ the naval

force in the vicinity for the protection of the lives and property

of our fellow-citizens passing in transit over the different Central

American routes against sudden and lawless outbreaks and depredations,

and also to protect American merchant vessels, their crews and cargoes,

against violent and unlawful seizure and confiscation in the ports of

Mexico and the South American Republics when these may be in a disturbed

and revolutionary condition. It is my settled conviction that without

such a power we do not afford that protection to those engaged in the

commerce of the country which they have a right to demand.

I again recommend to Congress the passage of a law, in pursuance of

the provisions of the Constitution, appointing a day certain previous

to the 4th March in each year of an odd number for the election of

Representatives throughout all the States. A similar power has already

been exercised, with general approbation, in the appointment of the

same day throughout the Union for holding the election of electors for

President and Vice-President of the United States. My attention was

earnestly directed to this subject from the fact that the Thirty-fifth

Congress terminated on the 3d March, 1859, without making the necessary

appropriation for the service of the Post-Office Department. I was then

forced to consider the best remedy for this omission, and an immediate

call of the present Congress was the natural resort. Upon inquiry,

however, I ascertained that fifteen out of the thirty-three States

composing the Confederacy were without Representatives, and that

consequently these fifteen States would be disfranchised by such a call.

These fifteen States will be in the same condition on the 4th March

next. Ten of them can not elect Representatives, according to existing

State laws, until different periods, extending from the beginning

of August next until the months of October and November. In my last

message I gave warning that in a time of sudden and alarming danger

the salvation of our institutions might depend upon the power of the

President immediately to assemble a full Congress to meet the emergency.

It is now quite evident that the financial necessities of the Government

will require a modification of the tariff during your present session

for the purpose of increasing the revenue. In this aspect, I desire to

reiterate the recommendation contained in my last two annual messages

in favor of imposing specific instead of _ad valorem_ duties on all

imported articles to which these can be properly applied. From long

observation and experience I am convinced that specific duties

are necessary, both to protect the revenue and to secure to our

manufacturing interests that amount of incidental encouragement

which unavoidably results from a revenue tariff.

As an abstract proposition it may be admitted that _ad valorem_ duties

would in theory be the most just and equal. But if the experience of

this and of all other commercial nations has demonstrated that such

duties can not be assessed and collected without great frauds upon the

revenue, then it is the part of wisdom to resort to specific duties.

Indeed, from the very nature of an _ad valorem_ duty this must be the

result. Under it the inevitable consequence is that foreign goods will

be entered at less than their true value. The Treasury will therefore

lose the duty on the difference between their real and fictitious value,

and to this extent we are defrauded.

The temptations which _ad valorem_ duties present to a dishonest

importer are irresistible. His object is to pass his goods through the

custom-house at the very lowest valuation necessary to save them from

confiscation. In this he too often succeeds in spite of the vigilance,

of the revenue officers. Hence the resort to false invoices, one for the

purchaser and another for the custom-house, and to other expedients to

defraud the Government. The honest importer produces his invoice to the

collector, stating the actual price, at which he purchased the articles

abroad. Not so the dishonest importer and the agent of the foreign

manufacturer. And here it may be observed that a very large proportion

of the manufactures imported from abroad are consigned for sale to

commission merchants, who are mere agents employed by the manufacturers.

In such cases no actual sale has been made to fix their value. The

foreign manufacturer, if he be dishonest, prepares an invoice of the

goods, not at their actual value, but at the very lowest rate necessary

to escape detection. In this manner the dishonest importer and the

foreign manufacturer enjoy a decided advantage over the honest merchant.

They are thus enabled to undersell the fair trader and drive him from

the market. In fact the operation of this system has already driven from

the pursuits of honorable commerce many of that class of regular and

conscientious merchants whose character throughout the world is the

pride of our country.

The remedy for these evils, is to be found in specific duties, so

far as this may be practicable. They dispense with any inquiry at the

custom-house into the actual cost or value of the article, and it pays

the precise amount of duty previously fixed by law. They present no

temptations to the appraisers of foreign goods, who receive but small

salaries, and might by undervaluation in a few cases render themselves

independent.

Besides, specific duties best conform to the requisition in the

Constitution that "no preference shall be given by any regulation of

commerce or revenue to the ports of one State over those of another."

Under our _ad valorem_ system such preferences are to some extent

inevitable, and complaints have often been made that the spirit of this

provision has been violated by a lower appraisement of the same articles

at one port than at another.

An impression strangely enough prevails to some extent that specific

duties are necessarily protective duties. Nothing can be more

fallacious. Great Britain glories in free trade, and yet her whole

revenue from imports is at the present moment collected under a system

of specific duties. It is a striking fact in this connection that in the

commercial treaty of January 23, 1860, between France and England one

of the articles provides that the _ad valorem_ duties which it imposes

shall be converted into specific duties within six months from its date,

and these are to be ascertained by making an average of the prices for

six months previous to that time. The reverse of the propositions would

be nearer to the truth, because a much larger amount of revenue would be

collected by merely converting the _ad valorem_ duties of a tariff into

equivalent specific duties. To this extent the revenue would be

increased, and in the same proportion the specific duty might be

diminished.

Specific duties would secure to the American manufacturer the incidental

protection to which he is fairly entitled under a revenue tariff, and to

this surely no person would object. The framers of the existing tariff

have gone further, and in a liberal spirit have discriminated in favor

of large and useful branches of our manufactures, not by raising the

rate of duty upon the importation of similar articles from abroad, but,

what is the same in effect, by admitting articles free of duty which

enter into the composition of their fabrics.

Under the present system it has been often truly remarked that this

incidental protection decreases when the manufacturer needs it most and

increases when he needs it least, and constitutes a sliding scale which

always operates against him. The revenues of the country are subject to

similar fluctuations. Instead of approaching a steady standard, as would

be the case under a system of specific duties, they sink and rise with

the sinking and rising prices of articles in foreign countries. It would

not be difficult for Congress to arrange a system of specific duties

which would afford additional stability both to our revenue and our

manufactures and without injury or injustice to any interest of the

country. This might be accomplished by ascertaining the average value of

any given article for a series of years at the place of exportation and

by simply converting the rate of _ad valorem_ duty upon it which might

be deemed necessary for revenue purposes into the form of a specific

duty. Such an arrangement could not injure the consumer. If he should

pay a greater amount of duty one year, this would be counterbalanced by

a lesser amount the next, and in the end the aggregate would be the

same.

I desire to call your immediate attention to the present condition

of the Treasury, so ably and clearly presented by the Secretary in

his report to Congress, and to recommend that measures be promptly

adopted to enable it to discharge its pressing obligations. The other

recommendations of the report are well worthy of your favorable

consideration.

I herewith transmit to Congress the reports of the Secretaries of War,

of the Navy, of the Interior, and of the Postmaster-General. The

recommendations and suggestions which they contain are highly valuable

and deserve your careful attention.

The report of the Postmaster-General details the circumstances under

which Cornelius Vanderbilt, on my request, agreed in the month of July

last to carry the ocean mails between our Atlantic and Pacific coasts.

Had he not thus acted this important intercommunication must have been

suspended, at least for a season. The Postmaster-General had no power

to make him any other compensation than the postages on the mail matter

which he might carry. It was known at the time that these postages would

fall far short of an adequate compensation, as well as of the sum which

the same service had previously cost the Government. Mr. Vanderbilt, in

a commendable spirit, was willing to rely upon the justice of Congress

to make up the deficiency, and I therefore recommend that an

appropriation may be granted for this purpose.

I should do great injustice to the Attorney-General were I to omit

the mention of his distinguished services in the measures adopted and

prosecuted by him for the defense of the Government against numerous and

unfounded claims to land in California purporting to have been made by

the Mexican Government previous to the treaty of cession. The successful

opposition to these claims has saved the United States public property

worth many millions of dollars and to individuals holding title under

them to at least an equal amount.

It has been represented to me from sources which I deem reliable that

the inhabitants in several portions of Kansas have been reduced nearly

to a state of starvation on account of the almost total failure of their

crops, whilst the harvests in every other portion of the country have

been abundant. The prospect before them for the approaching winter is

well calculated to enlist the sympathies of every heart. The destitution

appears to be so general that it can not be relieved by private

contributions, and they are in such indigent circumstances as to be

unable to purchase the necessaries of life for themselves. I refer the

subject to Congress, If any constitutional measure for their relief can

be devised, I would recommend its adoption.

I cordially commend to your favorable regard the interests of the people

of this District. They are eminently entitled to your consideration,

especially since, unlike the people of the States, they can appeal to

no government except that of the Union.

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