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 comitatus 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 hand 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 rounded 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.

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