Great Britain rejected this amendment, assigning as the only

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State of the Union Addresses of James Buchanan

The addresses are separated by three asterisks: ***

Dates of addresses by James Buchanan in this eBook:

December 8, 1857

December 6, 1858

December 19, 1859

December 3, 1860

***

State of the Union Address

James Buchanan

December 8, 1857

Fellow-Citizens of the Senate and House of Representatives:

In obedience to the command of the Constitution, it has now become my duty

"to give to Congress information of the state of the Union and recommend to

their consideration such measures" as I judge to be "necessary and

expedient."

But first and above all, our thanks are due to Almighty God for the

numerous benefits which He has bestowed upon this people, and our united

prayers ought to ascend to Him that He would continue to bless our great

Republic in time to come as He has blessed it in time past. Since the

adjournment of the last Congress our constituents have enjoyed an unusual

degree of health. The earth has yielded her fruits abundantly and has

bountifully rewarded the toil of the husbandman. Our great staples have

commanded high prices, and up till within a brief period our manufacturing,

mineral, and mechanical occupations have largely partaken of the general

prosperity. We have possessed all the elements of material wealth in rich

abundance, and yet, notwithstanding all these advantages, our country in

its monetary interests is at the present moment in a deplorable condition.

In the midst of unsurpassed plenty in all the productions of agriculture

and in all the elements of national wealth, we find our manufactures

suspended, our public works retarded, our private enterprises of different

kinds abandoned, and thousands of useful laborers thrown out of employment

and reduced to want. The revenue of the Government, which is chiefly

derived from duties on imports from abroad, has been greatly reduced,

whilst the appropriations made by Congress at its last session for the

current fiscal year are very large in amount.

Under these circumstances a loan may be required before the close of your

present session; but this, although deeply to be regretted, would prove to

be only a slight misfortune when compared with the suffering and distress

prevailing among the people. With this the Government can not fail deeply

to sympathize, though it may be without the power to extend relief.

It is our duty to inquire what has produced such unfortunate results and

whether their recurrence can be prevented. In all former revulsions the

blame might have been fairly attributed to a variety of cooperating causes,

but not so upon the present occasion. It is apparent that our existing

misfortunes have proceeded solely from our extravagant and vicious system

of paper currency and bank credits, exciting the people to wild

speculations and gambling in stocks. These revulsions must continue to

recur at successive intervals so long as the amount of the paper currency

and bank loans and discounts of the country shall be left to the discretion

of 1,400 irresponsible banking institutions, which from the very law of

their nature will consult the interest of their stockholders rather than

the public welfare.

The framers of the Constitution, when they gave to Congress the power "to

coin money and to regulate the value thereof" and prohibited the States

from coining money, emitting bills of credit, or making anything but gold

and silver coin a tender in payment of debts, supposed they had protected

the people against the evils of an excessive and irredeemable paper

currency. They are not responsible for the existing anomaly that a

Government endowed with the sovereign attribute of coining money and

regulating the value thereof should have no power to prevent others from

driving this coin out of the country and filling up the channels of

circulation with paper which does not represent gold and silver.

It is one of the highest 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 wisdom and skill to the wants of

internal trade and foreign exchanges. If this be either greatly above or

greatly below the proper standard, the marketable value of every man's

property is increased or diminished in the same proportion, and injustice

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 changed this important and delicate duty has

been dissevered from the coining power and virtually transferred to more

than 1,400 State banks acting independently of each other and regulating

their paper issues almost exclusively by a regard to the present interest

of their stockholders. Exercising the sovereign power of providing a paper

currency instead of coin for the country, the first duty which these banks

owe to the 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.

No bank ought ever to be chartered without such restrictions

on its business as to secure this result. All other restrictions are

comparatively vain. This is the only true touchstone, the only efficient

regulator of a paper currency--the only one which can guard the public

against overissues 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 overissue. On the contrary, it may

be perverted to inflate the currency. Indeed, it is possible by this means

to convert all the debts of the United States and State Governments into

bank notes, without reference to the specie required to redeem them.

However valuable these securities may be in themselves, they can not be

converted into gold and silver at the moment of pressure, as our experience

teaches, 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 our own in this respect, it was

deemed advisable, anterior to the act of Parliament of 1844, which wisely

separated the issue of notes from the banking department, for the Bank of

England always to keep on hand gold and silver equal to one-third of its

combined circulation and deposits. If this proportion was no more than

sufficient to secure the convertibility of its notes with the whole of

Great Britain and to some extent the continent of Europe as a field for its

circulation, rendering it almost impossible that a sudden and immediate run

to a dangerous amount should be made upon it, the same proportion would

certainly be insufficient under our banking system. Each of our 1,400 banks

has but a limited circumference for its circulation, and in the course of a

very few days the depositors and note holders might demand from such a bank

a sufficient amount in specie to compel it to suspend, even although it had

coin in its vaults equal to one-third of its immediate liabilities. And yet

I am not aware, with the exception of the banks of Louisiana, that any

State bank throughout the Union has been required by its charter to keep

this or any other proportion of gold and silver compared with the amount of

its combined circulation and deposits. What has been the consequence? In a

recent report made by the Treasury Department on the condition of the banks

throughout the different States, according to returns dated nearest to

January, 1857, the aggregate amount of actual specie in their vaults is

$58,349,838, of their circulation $214,778,822, and of their deposits

$230,351,352. Thus it appears that these banks in the aggregate have

considerably less than one dollar in seven of gold and silver compared with

their circulation and deposits. It was palpable, therefore, that the very

first pressure must drive them to suspension and deprive the people of a

convertible currency, with all its disastrous consequences. It is truly

wonderful that they should have so long continued to preserve their credit

when a demand for the payment of one-seventh of their immediate liabilities

would have driven them into insolvency. And this is the condition of the

banks, notwithstanding that four hundred millions of gold from California

have flowed in upon us within the last eight years, and the tide still

continues to flow. Indeed, such has been the extravagance of bank credits

that the banks now hold a considerably 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 1848 their specie in proportion to their capital was more than equal

to one dollar for four and a half, in 1857 it does not amount to one dollar

for every six dollars and thirty-three cents of their capital. In the year

1848 the specie was equal within a very small fraction to one dollar in

five of their circulation and deposits; in 1857 it is not equal to one

dollar in seven and a half of their circulation and deposits.

From this statement it is 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, followed by 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 demoralizing stock gambling. When the crisis arrives, as arrive it

must, the banks can extend no relief to the people. In a vain struggle to

redeem their liabilities in specie they are compelled to contract their

loans and their issues, and at last, in the hour of distress, when their

assistance is most needed, they and their debtors together sink into

insolvency.

It is this paper system of extravagant expansion, raising the nominal price

of every article far beyond its real value when compared with the cost of

similar articles in countries whose circulation is wisely regulated, which

has prevented us from competing in our own markets with foreign

manufacturers, has produced extravagant importations, and has counteracted

the effect of the large incidental protection afforded to our domestic

manufactures by the present revenue tariff. But for this the branches of

our manufactures composed of raw materials, the production of our own

country--such as cotton, iron, and woolen fabrics--would not only have

acquired almost exclusive possession of the home market, but would have

created for themselves a foreign market throughout the world.

Deplorable, however, as may be our present financial condition, we may yet

indulge in bright hopes for the future. No other nation has ever existed

which could have endured such violent expansions and contractions of paper

credits without lasting injury; yet the buoyancy of youth, the energies of

our population, and the spirit which never quails before difficulties will

enable us soon to recover from our present financial embarrassments, and

may even occasion us speedily to forget the lesson which they have taught.

In the meantime it is the duty of the Government, by all proper means

within its power, to aid in alleviating the sufferings of the people

occasioned by the suspension of the banks and to provide against a

recurrence of the same calamity. Unfortunately, in either aspect of the

case it can do but little. Thanks to the independent treasury, the

Government has not suspended payment, as it was compelled to do by the

failure of the banks in 1837. It will continue to discharge its liabilities

to the people in gold and 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 a temporary loan, it can be

effected on advantageous terms. This, however, shall if possible be

avoided, but if not, then the amount shall be limited to the lowest

practicable 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 injury to the country. Those

necessary for its defense shall proceed as though there had been no crisis

in our monetary affairs.

But the Federal Government can not 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 truth of this assertion. Such a bank could

not, if it would, regulate the issues and credits of 1,400 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 us against future suspensions. In 1825 an effort was made

by the Bank of England to curtail the issues of the country banks under the

most favorable circumstances. The paper currency had been expanded to a

ruinous extent, and the bank put forth all its power to contract it in

order to reduce prices and restore the equilibrium of the foreign

exchanges. It accordingly commenced 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 compelled to follow its example. It found, however, that

as it contracted they expanded, and at the end of the process, to employ

the language of a very high official authority, "whatever reduction of the

paper circulation was effected by the Bank of England (in 1825) was more

than made up by the issues of the country banks."

But 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

currency must often be in direct conflict with the immediate interest of

its stockholders. If we expect one agent to restrain or control another,

their interests must, at least in some degree, be antagonistic. But the

directors of a bank of the United 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 with loans, and to

declare large dividends. Such has been our experience in regard to the last

bank.

After all, we must mainly rely upon the patriotism and wisdom of the States

for the prevention and redress of the evil. If they will afford us a real

specie basis for our paper circulation by increasing the denomination of

bank notes, first to twenty and afterwards to fifty dollars; if they will

require that the banks shall at all times keep on hand at least one dollar

of gold and silver for every three dollars of their circulation and

deposits, and if they will provide by a self-executing enactment, which

nothing can arrest, that the moment they suspend they shall go into

liquidation, I believe that such provisions, with a weekly publication by

each bank of a statement of its condition, would go far to secure us

against future suspensions of specie payments.

Congress, in my opinion, possess the power to pass a uniform bankrupt 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 instinct of self-preservation would then

compel it to perform its duties in such a manner as to escape the penalty

and preserve its life.

The existence of banks and the circulation of bank paper are so identified

with the habits of our people that they can not at this day be suddenly

abolished without much immediate injury to the country. If we could confine

them to their appropriate sphere and prevent them from administering to the

spirit of wild and reckless speculation by extravagant loans and issues,

they might be continued with advantage to the public.

But this I say, after long and much reflection: If experience shall prove

it to be impossible to enjoy the facilities which well-regulated banks

might afford without at the same time suffering the calamities which the

excesses of the banks have hitherto inflicted upon the country, it would

then be far the lesser evil to deprive them altogether of the power to

issue a paper currency and confine them to the functions of banks of

deposit and discount.

Our relations with foreign governments are upon the whole in a satisfactory

condition.

The diplomatic difficulties which existed between the Government of the

United States and that of Great Britain at the adjournment of the last

Congress have been happily terminated by the appointment of a British

minister to this country, who has been cordially received. Whilst it is

greatly to the interest, as I am convinced it is the sincere desire, of the

Governments and people of the two countries to be on terms of intimate

friendship with each other, it has been our 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 convention of April 19, 1850, commonly

called the Clayton and Bulwer treaty, has been the most unfortunate of all,

because the two Governments place directly opposite and contradictory

constructions upon its first and most important article. 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 colonize, or assume, or exercise any dominion" over any part of

Central America, it is contended by the British Government 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 the United States of the right of Great Britain, either as

owner or protector, to the whole extensive coast of Central America,

sweeping round from the Rio Hondo to the port and harbor of San Juan de

Nicaragua, together with the adjacent Bay Islands, except the comparatively

small portion of this between the Sarstoon and Cape Honduras. According to

their construction, the treaty does no more than simply prohibit them from

extending their possessions in Central America beyond the present limits.

It is not too much to assert that if in the United States the treaty had

been considered susceptible of such a construction it never would have been

negotiated under the authority of the President, nor would it have received

the approbation of the Senate. The universal conviction in the United

States was that when our Government consented to violate its traditional

and time-honored policy and to stipulate with a foreign government never to

occupy or acquire territory in the Central American portion of our own

continent, the consideration for this sacrifice was that Great Britain

should, in this respect at least, be placed in the same position with

ourselves. Whilst we have no right to doubt the sincerity of the British

Government in their construction of the treaty, it is at the same time my

deliberate conviction that this construction is in opposition both to its

letter and its spirit.

Under the late Administration negotiations were instituted between the two

Governments for the purpose, if possible, of removing these difficulties,

and a treaty having this laudable object in view was signed at London on

the 17th October, 1856, and was submitted by the President to the Senate on

the following 10th of December. Whether this treaty, either in its original

or amended form, would have accomplished the object intended without giving

birth to new and embarrassing complications between the two Governments,

may perhaps be well questioned. Certain it is, however, it was rendered

much less objectionable by the different amendments made to it by the

Senate. The treaty as amended was ratified by me on the 12th March, 1857,

and was transmitted to London for ratification by the British 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

Ruatan and the other islands in the Bay of Honduras. The article in the

original treaty as submitted to the Senate, after reciting that these

islands and their inhabitants "having been, by a convention bearing date

the 27th day of August, 1856, between Her Britannic Majesty and the

Republic of Honduras, constituted and declared a free territory under the

sovereignty of the said Republic of Honduras," stipulated that "the two

contracting parties do hereby mutually engage to recognize and respect in

all future time the independence and rights of the said free territory as a

part of the Republic of Honduras."

Upon an examination of this convention between Great Britain and Honduras

of the 27th August, 1856, it was found that whilst declaring the Bay

Islands to be "a free territory under the sovereignty of the Republic of

Honduras" it deprived that Republic of rights without which its sovereignty

over them could scarcely be said to exist. It divided them from the

remainder of Honduras and gave to their inhabitants a separate government

of their own, with legislative, executive, and judicial officers elected by

themselves. It deprived the Government of Honduras of the taxing power in

every form and exempted the people of the islands from the performance of

military duty except for their own exclusive defense. It also prohibited

that Republic from erecting fortifications upon them for their protection,

thus leaving them open to invasion from any quarter; and, finally, it

provided "that slavery shall not at any time hereafter be permitted to

exist therein."

Had Honduras ratified this convention, she would have ratified the

establishment of a state substantially independent within her own limits,

and a state at all times subject to British influence and control.

Moreover, had the United States ratified the treaty with Great Britain in

its original form, we should have been bound "to recognize and respect in

all future time" these stipulations to the prejudice of Honduras. Being in

direct opposition to the spirit and meaning of the Clayton and Bulwer

treaty as understood in the United States, the Senate rejected the entire

clause, and substituted in its stead a simple recognition of the sovereign

right of Honduras to these islands in the following language: The two

contracting parties do hereby mutually engage to recognize and respect the

islands of Ruatan, Bonaco, Utila, Barbaretta, Helena, and Moral, situate in

the Bay of Honduras and off the coast of the Republic of Honduras, as under

the sovereignty and as part of the said Republic of Honduras.

Great Britain rejected this amendment, assigning as the only reason that

the ratifications of the convention of the 27th August, 1856, between her

and Honduras had 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 difficulty in agreeing to the modification

proposed by the Senate, which then would have had in effect the same

signification as the original wording." Whether this would have been the

effect, whether the mere circumstance of the exchange of the ratifications

of the British convention with Honduras prior in point of time to the

ratification of our treaty with Great Britain would "in effect" have had

"the same signification as the original wording," and thus have nullified

the amendment of the Senate, may well be doubted. It is, perhaps, fortunate

that the question has never arisen.

The British Government, immediately after rejecting the treaty as amended,

proposed to enter into a new treaty with the United States, similar in all

respects to the treaty which they had just refused to ratify, if the United

States would consent to add to the Senate's clear and unqualified

recognition of the sovereignty of Honduras over the Bay Islands the

following conditional stipulation: Whenever and so soon as the Republic of

Honduras shall have concluded and ratified a treaty with Great Britain by

which Great Britain shall have ceded and the Republic of Honduras shall

have accepted the said islands, subject to the provisions and conditions

contained in such treaty.

This proposition was, of course, rejected. After the Senate had refused to

recognize the British convention with Honduras of the 27th August, 1856,

with full knowledge of its contents, it was impossible for me, necessarily

ignorant of "the provisions and conditions" which might be contained in a

future convention between the same parties, to sanction them in advance.

The fact is that when two nations like Great Britain and the United States,

mutually desirous, as they are, and I trust ever may be, of maintaining the

most friendly relations with each other, have unfortunately concluded a

treaty which they understand in senses directly opposite, the wisest course

is to abrogate such a treaty by mutual consent and to commence anew. Had

this been done promptly, all difficulties in Central America would most

probably ere this have been adjusted to the satisfaction of both parties.

The time spent in discussing the meaning of the Clayton and Bulwer treaty

would have been devoted to this praiseworthy purpose, and the task would

have been the more easily accomplished because the interest of the two

countries in Central America is identical, being confined to securing safe

transits over all the routes across the Isthmus.

Whilst entertaining these sentiments, I shall, nevertheless, not refuse to

contribute to any reasonable adjustment of the Central American questions

which is not practically inconsistent with the American interpretation of

the treaty. Overtures for this purpose have been recently made by the

British Government in a friendly spirit, which I cordially reciprocate, but

whether this renewed effort will result in success I am not yet prepared to

express an opinion. A brief period will determine.

With France our ancient relations of friendship still continue to exist.

The French Government have in several recent instances, which need not be

enumerated, evinced a spirit of good will and kindness toward our country,

which I heartily reciprocate. It is, notwithstanding, much to be regretted

that two nations whose productions are of such a character as to invite the

most extensive exchanges and freest commercial intercourse should continue

to enforce ancient and obsolete restrictions of trade against each other.

Our commercial treaty with France is in this respect an exception from our

treaties with all other commercial nations. It jealously levies

discriminating duties both on tonnage and on articles the growth, produce,

or manufacture of the one country when arriving in vessels belonging to the

other.

More than forty years ago, on the 3d March, 1815, Congress passed an act

offering to all nations to admit their vessels laden with their national

productions into the ports of the United States upon the same terms with

our own vessels provided they would reciprocate to us similar advantages.

This act confined the reciprocity to the productions of the respective

foreign nations who might enter into the proposed arrangement with the

United States. The act of May 24, 1828, removed this restriction and

offered a similar reciprocity to all such vessels without reference to the

origin of their cargoes. Upon these principles our commercial treaties and

arrangements have been rounded, except with France, and let us hope that

this exception may not long exist.

Our relations with Russia remain, as they have ever been, on the most

friendly footing. The present Emperor, as well as his predecessors, have

never failed when the occasion offered to manifest their good will to our

country, and their friendship has always been highly appreciated by the

Government and people of the United States.

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 the adjournment of Congress toward the

settlement of any of the numerous claims of our citizens against the

Spanish Government. Besides, the outrage committed on our flag by the

Spanish war frigate Ferrolana on the high seas off the coast of Cuba in

March, 1855, by firing into the American mail steamer El Dorado and

detaining and searching her, remains unacknowledged and unredressed. The

general tone and temper of the Spanish Government toward that of the United

States are much to be regretted. Our present envoy extraordinary and

minister plenipotentiary to Madrid has asked to be recalled, and it is my

purpose to send out a new minister to Spain with special instructions on

all questions pending between the two Governments, and with a determination

to have them speedily and amicably adjusted if this be possible. In the

meantime, whenever our minister urges the just claims of our citizens on

the notice of the Spanish Government he is met with the objection that

Congress has never made the appropriation recommended by President Polk in

his annual message of December, 1847, "to be paid to the Spanish Government

for the purpose of distribution among the claimants in the Amistad case." A

similar recommendation was made by my immediate predecessor in his message

of December, 1853, and entirely concurring with both in the opinion that

this indemnity is justly due under the treaty with Spain of the 27th of

October, 1795, I earnestly recommend such an appropriation to the favorable

consideration of Congress.

A treaty of friendship and commerce was concluded at Constantinople on the

13th December, 1856, between the United States and Persia, the

ratifications of which were exchanged at Constantinople on the 13th June,

1857, and the treaty was proclaimed by the President on the 18th August,

1857. This treaty, it is believed, will prove beneficial to American

commerce. The Shah has manifested an earnest disposition to cultivate

friendly relations with our country, and has expressed a strong wish that

we should be represented at Teheran by a minister plenipotentiary; and I

recommend that an appropriation be made for this purpose.

Recent occurrences in China have been unfavorable to a revision of the

treaty with that Empire of the 3d July, 1844, with a view to the security

and extension of our commerce. The twenty-fourth article of this treaty

stipulated 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 same by means of suitable persons appointed to conduct such

negotiations." These twelve years expired on the 3d July, 1856, but long

before that period it was ascertained that important changes in the treaty

were necessary, and several fruitless attempts were made by the

commissioner of the United States to effect these changes. Another effort

was about to be made for the same purpose by our commissioner in

conjunction with the ministers of England and France, but this was

suspended by the occurrence of hostilities in the Canton River between

Great Britain and the Chinese Empire. These hostilities have necessarily

interrupted the trade of all nations with Canton, which is now in a state

of blockade, and have occasioned a serious loss of life and property.

Meanwhile the insurrection within the Empire against the existing imperial

dynasty still continues, and it is difficult to anticipate what will be the

result.

Under these circumstances I have deemed it advisable to appoint a

distinguished citizen of Pennsylvania envoy extraordinary and minister

plenipotentiary to proceed to China and to avail himself of any

opportunities which may offer to effect changes in the existing treaty

favorable to American commerce. He left the United States for the place of

his destination in July last in the war steamer Minnesota. Special

ministers to China have also been appointed by the Governments of Great

Britain and France.

Whilst our minister has been instructed to occupy a neutral position in

reference to the existing hostilities at Canton, he will cordially

cooperate with the British and French ministers in all peaceful measures to

secure by treaty stipulations those just concessions to commerce which the

nations of the world have a right to expect and which China can not long be

permitted to withhold. From assurances received I entertain no doubt that

the three ministers will act in harmonious concert to obtain similar

commercial treaties for each of the powers they represent.

We can not fail to feel a deep interest in all that concerns the welfare of

the independent Republics on our own continent, as well as of the Empire of

Brazil.

Our difficulties with New Granada, which a short time since bore so

threatening an aspect, are, it is to be hoped, in a fair train of

settlement in a manner just 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

commerce of the world is destined to pass. The United States are more

deeply interested than any other nation in preserving the freedom and

security of all the communications across this isthmus. It is our duty,

therefore, to take care that they shall not be interrupted either by

invasions from our own country or by wars between the independent States of

Central America. Under our treaty with New Granada of the 12th December,

1846, we are bound to guarantee the neutrality of the Isthmus of Panama,

through which the Panama Railroad passes, "as well as the rights of

sovereignty and property which New Granada has and possesses over the said

territory." This obligation is rounded upon equivalents granted by the

treaty to the Government and people of the United States.

Under these circumstances I recommend to Congress the passage of an act

authorizing the President, in case of necessity, to employ the land and

naval forces of the United States to carry into effect this guaranty of

neutrality and protection. I also recommend similar legislation for the

security of any other route across the Isthmus in which we may acquire an

interest by treaty.

With the independent Republics on this continent it is both our duty 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 us, our example and advice have lost

much of their influence in consequence of the lawless expeditions which

have been fitted out against some of them within the limits of our country.

Nothing is better calculated to retard our steady material progress or

impair our character as a nation than the toleration of such enterprises in

violation of the law of nations.

It is one of the first and highest duties of any independent state in its

relations with the members of the great family of nations to restrain its

people from acts of hostile aggression against their citizens or subjects.

The most eminent writers on public law do not hesitate to denounce such

hostile acts as robbery and murder.

Weak and feeble states like those of Central America may not feel

themselves able to assert and vindicate their rights. The case would be far

different if expeditions were set on foot within our own territories to

make private war against a powerful nation. If such expeditions were fitted

out from abroad against any portion of our own country, to burn down our

cities, murder and plunder our people, and usurp our Government, we should

call any power on earth to the strictest account for not preventing such

enormities.

Ever since the Administration of General Washington acts of Congress have

been enforced to punish severely the crime of setting on foot a military

expedition within the limits of the United States to proceed from thence

against a nation or state with whom we are at peace. The present neutrality

act of April 20, 1818, is but little more than a collection of preexisting

laws. Under this act the President is empowered to employ the land and

naval forces and the militia "for the purpose of preventing the carrying on

of any such expedition or enterprise from the territories and jurisdiction

of the United States," and the collectors of customs are authorized and

required to detain any vessel in port when there is 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 against Nicaragua, the Secretary of State

issued instructions to the marshals and district attorneys, which were

directed by the Secretaries of War and the Navy to the appropriate army and

navy officers, requiring them to be vigilant and to use their best

exertions in carrying into effect the provisions of the act of 1818.

Notwithstanding these precautions, the expedition has escaped from our

shores. Such enterprises can do no possible good to the country, but have

already inflicted much injury both on its interests and its character. They

have prevented peaceful emigration from the United States to the States of

Central America, which could not fail to prove highly beneficial to all the

parties concerned. In a pecuniary point of view alone our citizens have

sustained heavy losses from the seizure and closing of the transit route by

the San Juan between the two oceans.

The leader of the recent expedition was arrested at New Orleans, but was

discharged on giving bail for his appearance in the insufficient sum of

$2,000.

I commend the whole subject to the serious attention of Congress, believing

that our duty and our interest, as well as our national character, require

that we should adopt such measures as will be effectual in restraining our

citizens from committing such outrages.

I regret to inform you that the President of Paraguay has refused to ratify

the treaty between the United States and that State as amended by the

Senate, the signature of which was mentioned in the message of my

predecessor to Congress at the opening of its session in December, 1853.

The reasons assigned for this refusal will appear in the correspondence

herewith submitted.

It being desirable to ascertain the fitness of the river La Plata and its

tributaries for navigation by steam, the United States steamer Water Witch

was sent thither for that purpose in 1853. This enterprise was successfully

carried on until February, 1855, when, whilst in the peaceful prosecution

of her voyage up the Parana River, the steamer was fired upon by a

Paraguayan fort. The fire was returned, but as the Water Witch was of small

force and not designed for offensive operations, she retired from the

conflict. The pretext upon which the attack was made was a decree of the

President of Paraguay of October, 1854, prohibiting foreign vessels of war

from navigating the rivers of that State. As Paraguay, however, was the

owner of but one bank of the river of that name, the other belonging to

Corientes, a State of the Argentine Confederation, the right of its

Government to expect that such a decree would be obeyed can not be

acknowledged. But the Water Witch was not, properly speaking, a vessel of

war. She was a small steamer engaged in a scientific enterprise intended

for the advantage of commercial states generally. Under these circumstances

I am constrained to consider the attack upon her as unjustifiable and as

calling for satisfaction from the Paraguayan Government.

Citizens of the United States 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 an insulting and arbitrary

manner, which requires redress.

A demand for these purposes will be made in a firm but conciliatory spirit.

This will the more probably be granted if the Executive shall have

authority to use other means in the event of a refusal. This is accordingly

recommended.

It is unnecessary to state in detail the alarming condition of the

Territory of Kansas at the time of my inauguration. The opposing parties

then stood in hostile array against each other, and any accident might have

relighted the flames of civil war. Besides, at this critical moment Kansas

was left without a governor by the resignation of Governor Geary.

On the 19th of February previous the Territorial legislature had passed a

law providing for the election of delegates on the third Monday of June to

a convention to meet on the first Monday of September for the purpose of

framing a constitution preparatory to admission into the Union. This law

was in the main fair and just, and it is to be regretted that all the

qualified electors had not registered themselves and voted under its

provisions.

At the time of the election for delegates an extensive organization existed

in the Territory whose avowed object it was, if need be, to put down the

lawful government by force and to establish a government of their own under

the so-called Topeka constitution. The persons attached to this

revolutionary organization abstained from taking any part in the election.

The act of the Territorial legislature had omitted to provide for

submitting to the people the constitution which might be framed by the

convention, and in the excited state of public feeling throughout Kansas an

apprehension extensively prevailed that a design existed to force upon them

a constitution in relation to slavery against their will. In this emergency

it became my duty, as it was my unquestionable right, having in view the

union of all good citizens in support of the Territorial laws, to express

an opinion on the true construction of the provisions concerning slavery

contained in the organic act of Congress of the 30th May, 1854. Congress

declared it to be "the true intent and meaning of this act not to legislate

slavery into any Territory or State, nor to exclude it therefrom, but to

leave the people thereof perfectly free to form and regulate their domestic

institutions in their own way." Under it Kansas, "when admitted as a

State," was to "be received into the Union with or without slavery, as

their constitution may prescribe at the time of their admission."

Did Congress mean by this language that the delegates elected to frame a

constitution should have authority finally to decide the question of

slavery, or did they intend by leaving it to the people that the people of

Kansas themselves should decide this question by a direct vote? On this

subject I confess I had never entertained a serious doubt, and therefore in

my instructions to Governor Walker of the 28th March last I merely said

that when "a constitution shall be submitted to the people of the Territory

they must be protected in the exercise of their right of voting for or

against that instrument, and the fair expression of the popular will must

not be interrupted by fraud or violence."

In expressing this opinion it was far from my intention to interfere with

the decision of the people of Kansas, either for or against slavery. From

this I have always carefully abstained. Intrusted with the duty of taking

"care that the laws be faithfully executed," my only desire was that the

people of Kansas should furnish to Congress the evidence required by the

organic act, whether for or against slavery, and in this manner smooth

their passage into the Union. In emerging from the condition of Territorial

dependence into that of a sovereign State it was their duty, in my opinion,

to make known their will by the votes of the majority on the direct

question whether this important domestic institution should or should not

continue to exist. Indeed, this was the only possible mode in which their

will could be authentically ascertained.

The election of delegates to a convention must necessarily take place in

separate districts. From this cause it may readily happen, as has often

been the case, that a majority of the people of a State or Territory are on

one side of a question, whilst a majority of the representatives from the

several districts into which it is divided may be upon the other side. This

arises front the fact that in some districts delegates may be elected by

small majorities, whilst in others those of different sentiments may

receive majorities sufficiently great not only to overcome the votes given

for the former, but to leave a large majority of the whole people in direct

opposition to a majority of the delegates. Besides, our history proves that

influences may be brought to bear on the representative sufficiently

powerful to induce him to disregard the will of his constituents. The truth

is that no other authentic and satisfactory mode exists of ascertaining the

will of a majority of the people of any State or Territory on an important

and exciting question like that of slavery in Kansas except by leaving it

to a direct vote. How wise, then, was it for Congress to pass over all

subordinate and intermediate agencies and proceed directly to the source of

all legitimate power under our institutions!

How vain would any other principle prove in practice! This may be

illustrated by the case of Kansas. Should she be admitted into the Union

with a constitution either maintaining or abolishing slavery against the

sentiment of the people, this could have no other effect than to continue

and to exasperate the existing agitation during the brief period required

to make the constitution conform to the irresistible will of the majority.

The friends and supporters of the Nebraska and Kansas act, when struggling

on a recent occasion to sustain its wise provisions before the great

tribunal of the American people, never differed about its true meaning on

this subject. Everywhere throughout the Union they publicly pledged their

faith and their honor that they would cheerfully submit the question of

slavery to the decision of the bona fide people of Kansas, without any

restriction or qualification whatever. All were cordially united upon the

great doctrine of popular sovereignty, which is the vital principle of our

free institutions. Had it then been insinuated from any quarter that it

would be a sufficient compliance with the requisitions of the organic law

for the members of a convention thereafter to be elected to withhold the

question of slavery from the people and to substitute their own will for

that of a legally ascertained majority of all their constituents, this

would have been instantly rejected. Everywhere they remained true to the

resolution adopted on a celebrated occasion recognizing "the right of the

people of all the Territories, including Kansas and Nebraska, acting

through the legally and fairly expressed will of a majority of actual

residents, and whenever the number of their inhabitants justifies it, to

form a constitution with or without slavery and be admitted into the Union

upon terms of perfect equality with the other States."

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