the United States and Great Britain relative to coast fisheries and to
reciprocal trade with the British North American Provinces have been
exchanged, and some of its anticipated advantages are already enjoyed by
us, although its full execution was to abide certain acts of legislation
not yet fully performed. So soon as it was ratified Great Britain opened to
our commerce the free navigation of the river St. Lawrence and to our
fishermen unmolested access to the shores and bays, from which they had
been previously excluded, on the coasts of her North American Provinces; in
return for which she asked for the introduction free of duty into the ports
of the United States of the fish caught on the same coast by British
fishermen. This being the compensation stipulated in the treaty for
privileges of the highest importance and value to the United States, which
were thus voluntarily yielded before it became effective, the request
seemed to me to be a reasonable one; but it could not be acceded to from
want of authority to suspend our laws imposing duties upon all foreign
fish. In the meantime the Treasury Department issued a regulation for
ascertaining the duties paid or secured by bonds on fish caught on the
coasts of the British Provinces and brought to our markets by British
subjects after the fishing grounds had been made fully accessible to the
citizens of the United States. I recommend to your favorable consideration
a proposition, which will be submitted to you, for authority to refund the
duties and cancel the bonds thus received. The Provinces of Canada and New
Brunswick have also anticipated the full operation of the treaty by
legislative arrangements, respectively, to admit free of duty the products
of the United States mentioned in the free list of the treaty; and an
arrangement similar to that regarding British fish has been made for duties
now chargeable on the products of those Provinces enumerated in the same
free list and introduced therefrom into the United States, a proposition
for refunding which will, in my judgment, be in like manner entitled to
your favorable consideration.
There is difference of opinion between the United States and Great Britain
as to the boundary line of the Territory of Washington adjoining the
British possessions on the Pacific, which has already led to difficulties
on the part of the citizens and local authorities of the two Governments I
recommend that provision he made for a commission, to be joined by one on
the part of Her Britannic Majesty, for the purpose of running and
establishing the line in controversy. Certain stipulations of the third and
fourth articles of the treaty concluded by the United States and Great
Britain in 1846, regarding possessory rights of the Hudsons Bay Company and
property of the Pugets Sound Agricultural Company, have given rise to
serious disputes, and it is important to all concerned that summary means
of settling them amicably should be devised. I have reason to believe that
an arrangement can be made on just terms for the extinguishment of the
rights in question, embracing also the right of the Hudsons Bay Company to
the navigation of the river Columbia; and I therefore suggest to your
consideration the expediency of making a contingent appropriation for that
purpose.
France was the early and efficient ally of the United States in their
struggle for independence. From that time to the present, with occasional
slight interruptions, cordial relations of friendship have existed between
the Governments and people of the two countries. The kindly sentiments
cherished alike by both nations have led to extensive social and commercial
intercourse, which I trust will not be interrupted or checked by any casual
event of an apparently unsatisfactory character. The French consul at San
Francisco was not long since brought into the United States district court
at that place by compulsory process as a witness in favor of another
foreign consul, in violation, as the French Government conceives, of his
privileges under our consular convention with France. There being nothing
in the transaction which could imply any disrespect to France or its
consul, such explanation has been made as, I hope, will be satisfactory.
Subsequently misunderstanding arose on the subject of the French Government
having, as it appeared, abruptly excluded the American minister to Spain
from passing through France on his way from London to Madrid. But that
Government has unequivocally disavowed any design to deny the right of
transit to the minister of the United States, and after explanations to
this effect he has resumed his journey and actually returned through France
to Spain. I herewith lay before Congress the correspondence on this subject
between our envoy at Paris and the minister of foreign relations of the
French Government.
The position of our affairs with Spain remains as at the close of the last
session. Internal agitation, assuming very nearly the character of
political revolution, has recently convulsed that country. The late
ministers were violently expelled from power, and men of very different
views in relation to its internal affairs have succeeded. Since this change
there has been no propitious opportunity to resume and press on
negotiations for the adjustment of serious questions of difficulty between
the Spanish Government and the United States. There is reason to believe
that our minister will find the present Government more favorably inclined
than the preceding to comply with our just demands and to make suitable
arrangements for restoring harmony and preserving peace between the two
countries.
Negotiations are pending with Denmark to discontinue the practice of
levying tolls on our vessels and their cargoes passing through the Sound. I
do not doubt that we can claim exemption therefrom as a matter of right. It
is admitted on all hands that this exaction is sanctioned, not by the
general principles of the law of nations, but only by special conventions
which most of the commercial nations have entered into with Denmark. The
fifth article of our treaty of 1826 with Denmark provides that there shall
not be paid on the vessels of the United States and their cargoes when
passing through the Sound higher duties than those of the most favored
nations. This may be regarded as an implied agreement to submit to the
tolls during the continuance of the treaty, and consequently may embarrass
the assertion of our right to be released therefrom. There are also other
provisions in the treaty which ought to be modified. It was to remain in
force for ten years and until one year after either party should give
notice to the other of intention to terminate it. I deem it expedient that
the contemplated notice should be given to the Government of Denmark.
The naval expedition dispatched about two years since for the purpose of
establishing relations with the Empire of Japan has been ably and
skillfully conducted to a successful termination by the officer to whom it
was intrusted. A treaty opening certain of the ports of that populous
country has been negotiated, and in order to give full effect thereto it
only remains to exchange ratifications and adopt requisite commercial
regulations.
The treaty lately concluded between the United States and Mexico settled
some of our most embarrassing difficulties with that country, but numerous
claims upon it for wrongs and injuries to our citizens remained unadjusted,
and many new cases have been recently added to the former list of
grievances. Our legation has been earnest in its endeavors to obtain from
the Mexican Government a favorable consideration of these claims, but
hitherto without success. This failure is probably in some measure to be
ascribed to the disturbed condition of that country. It has been my anxious
desire to maintain friendly relations with the Mexican Republic and to
cause its rights and territories to be respected, not only by our citizens,
but by foreigners who have resorted to the United States for the purpose of
organizing hostile expeditions against some of the States of that Republic.
The defenseless condition in which its frontiers have been left has
stimulated lawless adventurers to embark in these enterprises and greatly
increased the difficulty of enforcing our obligations of neutrality.
Regarding it as my solemn duty to fulfill efficiently these obligations not
only toward Mexico, but other foreign nations, I have exerted all the
powers with which I am invested to defeat such proceedings and bring to
punishment those who by taking a part therein violated our laws. The energy
and activity of our civil and military authorities have frustrated the
designs of those who meditated expeditions of this character except in two
instances. One of these, composed of foreigners, was at first countenanced
and aided by the Mexican Government itself, it having been deceived as to
their real object. The other, small in number, eluded the vigilance of the
magistrates at San Francisco and succeeded in reaching the Mexican
territories; but the effective measures taken by this Government compelled
the abandonment of the undertaking.
The commission to establish the new line between the United States and
Mexico, according to the provisions of the treaty of the 30th of December
last, has been organized, and the work is already commenced.
Our treaties with the Argentine Confederation and with the Republics of
Uruguay and Paraguay secure to us the free navigation of the river La Plata
and some of its larger tributaries, but the same success has not attended
our endeavors to open the Amazon. The reasons in favor of the free use of
that river I had occasion to present fully in a former message, and,
considering the cordial relations which have long existed between this
Government and Brazil, it may be expected that pending negotiations will
eventually reach a favorable result.
Convenient means of transit between the several parts of a country are not
only desirable for the objects of commercial and personal communication,
but essential to its existence under one government. Separated, as are the
Atlantic and Pacific coasts of the United States, by the whole breadth of
the continent, still the inhabitants of each are closely bound together by
community of origin and institutions and by strong attachment to the Union.
Hence the constant and increasing intercourse and vast interchange of
commercial productions between these remote divisions of the Republic. At
the present time the most practicable and only, commodious routes for
communication between them are by the way of the isthmus of Central
America. It is the duty of the Government to secure these avenues against
all danger of interruption.
In relation to Central America, perplexing questions existed between the
United States and Great Britain at the time of the cession of California.
These, as well as questions which subsequently arose concerning
interoceanic communication across the Isthmus, were, as it was supposed,
adjusted by the treaty of April 19, 1850, but, unfortunately, they have
been reopened by serious misunderstanding as to the import of some or its
provisions, a readjustment of which is now under consideration. Our
minister at London has made strenuous efforts to accomplish this desirable
object, but has not yet found it possible to bring the negotiations to a
termination.
As incidental to these questions, I deem it proper to notice an occurrence
which happened in Central America near the close of the last session of
Congress. So soon as the necessity was perceived of establishing
interoceanic communications across the Isthmus a company was organized,
under the authority of the State of Nicaragua, but composed for the most
part of citizens of the United States, for the purpose of opening such a
transit way by the river San Juan and Lake Nicaragua, which soon became an
eligible and much used route in the transportation of our citizens and
their property between the Atlantic and Pacific. Meanwhile, and in
anticipation of the completion and importance of this transit way, a number
of adventurers had taken possession of the old Spanish port at the mouth of
the river San Juan in open defiance of the State or States of Central
America, which upon their becoming independent had rightfully succeeded to
the local sovereignty and jurisdiction of Spain. These adventurers
undertook to change the name of the place from San Juan del Norte to
Greytown, and though at first pretending to act as the subjects of the
fictitious sovereign of the Mosquito Indians, they subsequently repudiated
the control of any power whatever, assumed to adopt a distinct political
organization, and declared themselves an independent sovereign state. If at
some time a faint hope was entertained that they might become a stable and
respectable community, that hope soon vanished. They proceeded to assert
unfounded claims to civil jurisdiction over Punta Arenas, a position on the
opposite side of the river San Juan, which was in possession, under a title
wholly independent of them, of citizens of the United States interested in
the Nicaragua Transit Company, and which was indispensably necessary to the
prosperous operation of that route across the Isthmus. The company resisted
their groundless claims, whereupon they proceeded to destroy some of its
buildings and attempted violently to dispossess it.
At a later period they organized a strong force for the purpose of
demolishing the establishment at Punta Arenas, but this mischievous design
was defeated by the interposition of one of our ships of war at that time
in the harbor of San Juan. Subsequently to this, in May last, a body of men
from Greytown crossed over to Punta Arenas, arrogating authority to arrest
on the charge of murder a captain of one of the steamboats of the Transit
Company. Being well aware that the claim to exercise jurisdiction there
would be resisted then, as it had been on previous occasions, they went
prepared to assert it by force of arms. Our minister to Central America
happened to be present on that occasion. Believing that the captain of the
steamboat was innocent (for he witnessed the transaction on which the
charge was founder), and believing also that the intruding party, having no
jurisdiction over the place where they proposed to make the arrest, would
encounter desperate resistance if they persisted in their purpose, he
interposed, effectually, to prevent violence and bloodshed. The American
minister afterwards visited Greytown, and whilst he was there a mob,
including certain of the so-called public functionaries of the place,
surrounded the house in which he was, avowing that they had come to arrest
him by order of some person exercising the chief authority. While parleying
with them he was wounded by a missile from the crowd. A boat dispatched
from the American steamer Northern Light to release him from the perilous
situation in which he was understood to be was fired into by the town guard
and compelled to return. These incidents, together with the known character
of the population of Greytown and their excited state, induced just
apprehensions that the lives and property of our citizens at Punta Arenas
would be in imminent danger after the departure of the steamer, with her
passengers, for New York, unless a guard was left for their protection. For
this purpose, and in order to insure the safety of passengers and property
passing over the route, a temporary force was organized, at considerable
expense to the United States, for which provision was made at the last
session of Congress.
This pretended community, a heterogeneous assemblage gathered from various
countries, and composed for the most part of blacks and persons of mixed
blood, had previously given other indications of mischievous and dangerous
propensities. Early in the same month property was clandestinely abstracted
from the depot of the Transit Company and taken to Greytown. The plunderers
obtained shelter there and their pursuers were driven back by its people,
who not only protected the wrongdoers and shared the plunder, but treated
with rudeness and violence those who sought to recover their property.
Such, in substance, are the facts submitted to my consideration, and proved
by trustworthy evidence. I could not doubt that the case demanded the
interposition of this Government. Justice required that reparation should
be made for so many and such gross wrongs, and that a course of insolence
and plunder, tending directly to the insecurity of the lives of numerous
travelers and of the rich treasure belonging to our citizens passing over
this transit way, should be peremptorily arrested. Whatever it might be in
other respects, the community in question, in power to do mischief, was not
despicable. It was well provided with ordnance, small arms, and ammunition,
and might easily seize on the unarmed boats, freighted with millions of
property, which passed almost daily within its reach. It did not profess to
belong to any regular government, and had, in fact, no recognized
dependence on or connection with anyone to which the United States or their
injured citizens might apply for redress or which could be held responsible
in any way for the outrages committed. Not standing before the world in the
attitude of an organized political society, being neither competent to
exercise the rights nor to discharge the obligations of a government, it
was, in fact, a marauding establishment too dangerous to be disregarded and
too guilty to pass unpunished, and yet incapable of being treated in any
other way than as a piratical resort of outlaws or a camp of savages
depredating on emigrant trains or caravans and the frontier settlements of
civilized states.
Seasonable notice was given to the people of Greytown that this Government
required them to repair the injuries they had done to our citizens and to
make suitable apology for their insult of our minister, and that a ship of
war would be dispatched thither to enforce compliance with these demands.
But the notice passed unheeded. Thereupon a commander of the Navy, in
charge of the sloop of war Cyane, was ordered to repeat the demands and to
insist upon a compliance therewith. Finding that neither the populace nor
those assuming to have authority over them manifested any disposition to
make the required reparation, or even to offer excuse for their conduct, he
warned them by a public proclamation that if they did not give satisfaction
within a time specified he would bombard the town. By this procedure he
afforded them opportunity to provide for their personal safety. To those
also who desired to avoid loss of property in the punishment about to be
inflicted on the offending town he furnished the means of removing their
effects by the boats of his own ship and of a steamer which he procured and
tendered to them for that purpose. At length, perceiving no disposition on
the part of the town to comply with his requisitions, he appealed to the
commander of Her Britannic Majesty's schooner Bermuda, who was seen to have
intercourse and apparently much influence with the leaders among them, to
interpose and persuade them to take some course calculated to save the
necessity of resorting to the extreme measure indicated in his
proclamation; but that officer, instead of acceding to the request, did
nothing more than to protest against the contemplated bombardment. No steps
of any sort were taken by the people to give the satisfaction required. No
individuals, if any there were, who regarded themselves as not responsible
for the misconduct of the community adopted any means to separate
themselves from the fate of the guilty. The several charges on which the
demands for redress were founded had been publicly known to all for some
time, and were again announced to them. They did not deny any of these
charges; they offered no explanation, nothing in extenuation of their
conduct, but contumaciously refused to hold any intercourse with the
commander of the Cyane. By their obstinate silence they seemed rather
desirous to provoke chastisement than to escape it. There is ample reason
to believe that this conduct of wanton defiance on their part is imputable
chiefly to the delusive idea that the American Government would be deterred
from punishing them through fear of displeasing a formidable foreign power,
which they presumed to think looked with complacency upon their aggressive
and insulting deportment toward the United States. The Cyane at length
fired upon the town. Before much injury had been done the fire was twice
suspended in order to afford opportunity for an arrangement, but this was
declined. Most of the buildings of the place, of little value generally,
were in the sequel destroyed, but, owing to the considerate precautions
taken by our naval commander, there was no destruction of life.
When the Cyane was ordered to Central America, it was confidently hoped and
expected that no occasion would arise for "a resort to violence and
destruction of property and loss of life." Instructions to that effect were
given to her commander; and no extreme act would have been requisite had
not the people themselves, by their extraordinary conduct in the affair,
frustrated all the possible mild measures for obtaining satisfaction. A
withdrawal from the place, the object of his visit entirely defeated, would
under the circumstances in which the commander of the Cyane found himself
have been absolute abandonment of all claim of our citizens for
indemnification and submissive acquiescence in national indignity. It would
have encouraged in these lawless men a spirit of insolence and rapine most
dangerous to the lives and property of our citizens at Punta Arenas, and
probably emboldened them to grasp at the treasures and valuable merchandise
continually passing over the Nicaragua route. It certainly would have been
most satisfactory to me if the objects of the Cyane's mission could have
been consummated without any act of public force, but the arrogant
contumacy of the offenders rendered it impossible to avoid the alternative
either to break up their establishment or to leave them impressed with the
idea that they might persevere with impunity in a career of insolence and
plunder.
This transaction has been the subject of complaint on the part of some
foreign powers, and has been characterized with more of harshness than of
justice. If comparisons were to be instituted, it would not be difficult to
present repeated instances in the history of states standing in the very
front of modern civilization where communities far less offending and more
defenseless than Greytown have been chastised with much greater severity,
and where not cities only have been laid in ruins, but human life has been
recklessly sacrificed and the blood of the innocent made profusely to
mingle with that of the guilty.
Passing from foreign to domestic affairs, your attention is naturally
directed to the financial condition of the country, always a subject of
general interest. For complete and exact information regarding the finances
and the various branches of the public service connected therewith I refer
you to the report of the Secretary of the Treasury, from which it will
appear that the amount of revenue during the last fiscal year from all
sources was $73,549,705, and that the public expenditures for the same
period, exclusive of payments on account of the public debt, amounted to
$51, 018,249. During the same period the payments made in redemption of the
public debt, including interest and premium, amounted to $24,336,380. To
the sum total of the receipts of that year is to be added a balance
remaining in the Treasury at the commencement thereof, amounting to
$21,942,892; and at the close of the same year a corresponding balance,
amounting to $20,137,967, of receipts above expenditures also remained in
the Treasury. Although, in the opinion of the Secretary of the Treasury,
the receipts of the current fiscal year are not likely to equal in amount
those of the last, yet they will undoubtedly exceed the amount of
expenditures by at least $15,000,000. I shall therefore continue to direct
that the surplus revenue be applied, so far as it can be judiciously and
economically done, to the reduction of the public debt, the amount of which
at the commencement of the last fiscal year was $67,340,628; of which there
had been paid on the 20th day of November, 1854, the sum of $22,365,172,
leaving a balance of outstanding public debt of only $44,975,456,
redeemable at different periods within fourteen years. There are also
remnants of other Government stocks, most of which are already due, and on
which the interest has ceased, but which have not yet been presented for
payment, amounting to $233,179. This statement exhibits the fact that the
annual income of the Government greatly exceeds the amount of its public
debt, which latter remains unpaid only because the time of payment has not
yet matured, and it can not be discharged at once except at the option of
public creditors, who prefer to retain the securities of the United States;
and the other fact, not less striking, that the annual revenue from all
sources exceeds by many millions of dollars the amount needed for a prudent
and economical administration of the Government.