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President[ Franklin Pierce

         Date[ December 4, 1854


Fellow-Citizens of the Senate and of the House of Representatives:


The past has been an eventful year, and will be hereafter referred to as a

marked epoch in the history of the world. While we have been happily

preserved from the calamities of war, our domestic prosperity has not been

entirely uninterrupted. The crops in portions of the country have been

nearly cut off. Disease has prevailed to a greater extent than usual, and

the sacrifice of human life through casualties by sea and land is without

parallel. But the pestilence has swept by, and restored salubrity invites

the absent to their homes and the return of business to its ordinary

channels. If the earth has rewarded the labor of the husbandman less

bountifully than in preceding seasons, it has left him with abundance for

domestic wants and a large surplus for exportation. In the present,

therefore, as in the past, we find ample grounds for reverent thankfulness

to the God of grace and providence for His protecting care and merciful

dealings with us as a people.


Although our attention has been arrested by painful interest in passing

events, yet our country feels no more than the slight vibrations of the

convulsions which have shaken Europe. As individuals we can not repress

sympathy with human suffering nor regret for the causes which produce it;

as a nation we are reminded that whatever interrupts the peace or checks

the prosperity of any part of Christendom tends more or less to involve our

own. The condition of States is not unlike that of individuals; they are

mutually dependent upon each other. Amicable relations between them and

reciprocal good will are essential for the promotion of whatever is

desirable in their moral, social, and political condition. Hence it has

been my earnest endeavor to maintain peace and friendly intercourse with

all nations.


The wise theory of this Government, so early adopted and steadily pursued,

of avoiding all entangling alliances has hitherto exempted it from many

complications in which it would otherwise have become involved.

Notwithstanding this our clearly defined and well-sustained course of

action and our geographical position, so remote from Europe, increasing

disposition has been manifested by some of its Governments to supervise and

in certain respects to direct our foreign policy. In plans for adjusting

the balance of power among themselves they have assumed to take us into

account, and would constrain us to conform our conduct to their views. One

or another of the powers of Europe has from time to time undertaken to

enforce arbitrary regulations contrary in many respects to established

principles of international law. That law the United States have in their

foreign intercourse uniformly respected and observed, and they can not

recognize any such interpolations therein as the temporary interests of

others may suggest. They do not admit that the sovereigns of one continent

or of a particular community of states can legislate for all others.


Leaving the transatlantic nations to adjust their political system in the

way they may think best for their common welfare, the independent powers of

this continent may well assert the right to be exempt from all annoying

interference on their part. Systematic abstinence from intimate political

connection with distant foreign nations does not conflict with giving the

widest range to our foreign commerce. This distinction, so clearly marked

in history, seems to have been overlooked or disregarded by some leading

foreign states. Our refusal to be brought within and subjected to their

peculiar system has, I fear, created a jealous distrust of our conduct and

induced on their part occasional acts of disturbing effect upon our foreign

relations. Our present attitude and past course give assurances, which

should not be questioned, that our purposes are not aggressive nor

threatening to the safety and welfare of other nations. Our military

establishment in time of peace is adapted to maintain exterior defenses and

to preserve order among the aboriginal tribes within the limits of the

Union. Our naval force is intended only for the protection of our citizens

abroad and of our commerce, diffused, as it is, over all the seas of the

globe. The Government of the United States, being essentially pacific in

policy, stands prepared to repel invasion by the voluntary service of a

patriotic people, and provides no permanent means of foreign aggression.

These considerations should allay all apprehension that we are disposed to

encroach on the rights or endanger the security of other states.


Some European powers have regarded with disquieting concern the territorial

expansion of the United States. This rapid growth has resulted from the

legitimate exercise of sovereign rights belonging alike to all nations, and

by many liberally exercised. Under such circumstances it could hardly have

been expected that those among them which have within a comparatively

recent period subdued and absorbed ancient kingdoms, planted their

standards on every continent, and now possess or claim the control of the

islands of every ocean as their appropriate domain would look with

unfriendly sentiments upon the acquisitions of this country, in every

instance honorably obtained, or would feel themselves justified in imputing

our advancement to a spirit of aggression or to a passion for political

predominance. Our foreign commerce has reached a magnitude and extent

nearly equal to that of the first maritime power of the earth, and

exceeding that of any other. Over this great interest, in which not only

our merchants, but all classes of citizens, at least indirectly, are

concerned, it is the duty of the executive and legislative branches of the

Government to exercise a careful supervision and adopt proper measures for

its protection. The policy which I had in view in regard to this interest

embraces its future as well as its present security. Long experience has

shown that, in general, when the principal powers of Europe are engaged in

war the rights of neutral nations are endangered. This consideration led,

in the progress of the War of our Independence, to the formation of the

celebrated confederacy of armed neutrality, a primary object of which was

to assert the doctrine that free ships make free goods, except in the case

of articles contraband of war--a doctrine which from the very commencement

of our national being has been a cherished idea of the statesmen of this

country. At one period or another every maritime power has by some solemn

treaty stipulation recognized that principle, and it might have been hoped

that it would come to be universally received and respected as a rule of

international law. But the refusal of one power prevented this, and in the

next great war which ensued--that of the French Revolution--it failed to be

respected among the belligerent States of Europe. Notwithstanding this, the

principle is generally admitted to be a sound and salutary one, so much so

that at the commencement of the existing war in Europe Great Britain and

France announced their purpose to observe it for the present; not, however,

as a recognized international fight, but as a mere concession for the time

being. The cooperation, however, of these two powerful maritime nations in

the interest of neutral rights appeared to me to afford an occasion

inviting and justifying on the part of the United States a renewed effort

to make the doctrine in question a principle of international law, by means

of special conventions between the several powers of Europe and America.

Accordingly, a proposition embracing not only the rule that free ships make

free goods, except contraband articles, but also the less contested one

that neutral property other than contraband, though on board enemy's ships,

shall be exempt from confiscation, has been submitted by this Government to

those of Europe and America.


Russia acted promptly in this matter, and a convention was concluded

between that country and the United States providing for the observance of

the principles announced, not only as between themselves, but also as

between them and all other nations which shall enter into like

stipulations. None of the other powers have as yet taken final action on

the subject. I am not aware, however, that any objection to the proposed

stipulations has been made, but, on the contrary, they are acknowledged to

be essential to the security of neutral commerce, and the only apparent

obstacle to their general adoption is in the possibility that it may be

encumbered by inadmissible conditions. The King of the Two Sicilies has

expressed to our minister at Naples his readiness to concur in our

proposition relative to neutral rights and to enter into a convention on

that subject.


The King of Prussia entirely approves of the project of a treaty to the

same effect submitted to him, but proposes an additional article providing

for the renunciation of privateering. Such an article, for most obvious

reasons, is much desired by nations having naval establishments large in

proportion to their foreign commerce. If it were adopted as an

international rule, the commerce of a nation having comparatively a small

naval force would be very much at the mercy of its enemy in case of war

with a power of decided naval superiority. The bare statement of the

condition in which the United States would be placed, after having

surrendered the right to resort to privateers, in the event of war with a

belligerent of naval supremacy will show that this Government could never

listen to such a proposition. The navy of the first maritime power in

Europe is at least ten times as large as that of the United States. The

foreign commerce of the two countries is nearly equal, and about equally

exposed to hostile depredations. In war between that power and the United

States, without resort on our part to our mercantile marine the means of

our enemy to inflict injury upon our commerce would be tenfold greater than

ours to retaliate. We could not extricate our country from this unequal

condition, with such an enemy, unless we at once departed from our present

peaceful policy and became a great naval power. Nor would this country be

better situated in war with one of the secondary naval powers. Though the

naval disparity would be less, the greater extent and more exposed

condition of our widespread commerce would give any of them a like

advantage over us.


The proposition to enter into engagements to forego a resort to privateers

in case this country should be forced into war with a great naval power is

not entitled to more favorable consideration than would be a proposition to

agree not to accept the services of volunteers for operations on land. When

the honor or the rights of our country require it to assume a hostile

attitude, it confidently relies upon the patriotism of its citizens, not

ordinarily devoted to the military profession, to augment the Army and the

Navy so as to make them fully adequate to the emergency which calls them

into action. The proposal to surrender the right to employ privateers is

professedly founded upon the principle that private property of unoffending

noncombatants, though enemies, should be exempt from the ravages of war;

but the proposed surrender goes but little way in carrying out that

principle, which equally requires that such private property should not be

seized or molested by national ships of war. Should the leading powers of

Europe concur in proposing as a rule of international law to exempt private

property upon the ocean from seizure by public armed cruisers as well as by

privateers, the United States will readily meet them upon that broad

ground.


Since the adjournment of Congress the ratifications of the treaty between

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.


The estimates presented to Congress from the different Executive

Departments at the last session amounted to $38,406,581 and the

appropriations made to the sum of $58,116,958. Of this excess of

appropriations over estimates, however, more than twenty millions was

applicable to extraordinary objects, having no reference to the usual

annual expenditures. Among these objects was embraced ten millions to meet

the third article of the treaty between the United States and Mexico; so

that, in fact, for objects of ordinary expenditure the appropriations were

limited to considerably less than $40,000,000. I therefore renew my

recommendation for a reduction of the duties on imports. The report of the

Secretary of the Treasury presents a series of tables showing the operation

of the revenue system for several successive years; and as the general

principle of reduction of duties with a view to revenue, and not

protection, may now be regarded as the settled policy of the country, I

trust that little difficulty will be encountered in settling the details of

a measure to that effect.


In connection with this subject I recommend a change in the laws, which

recent experience has shown to be essential to the protection of the

Government. There is no express provision of law requiring the records and

papers of a public character of the several officers of the Government to

be left in their offices for the use of their successors, nor any provision

declaring it felony on their part to make false entries in the books or

return false accounts. In the absence of such express provision by law, the

outgoing officers in many instances have claimed and exercised the right to

take into their own possession important books and papers, on the ground

that these were their private property, and have placed them beyond the

reach of the Government. Conduct of this character, brought in several

instances to the notice of the present Secretary of the Treasury, naturally

awakened his suspicion, and resulted in the disclosure that at four

ports--namely, Oswego, Toledo, Sandusky, and Milwaukee--the Treasury had,

by false entries, been defrauded within the four years next preceding

March, 1853, of the sum of $198,000. The great difficulty with which the

detection of these frauds has been attended, in consequence of the

abstraction of books and papers by the retiring officers, and the facility

with which similar frauds in the public service may be perpetrated render

the necessity of new legal enactments in the respects above referred to

quite obvious. For other material modifications of the revenue laws which

seem to me desirable, I refer you to the report of the Secretary of the

Treasury. That report and the tables which accompany it furnish ample

proofs of the solid foundation on which the financial security of the

country rests and of the salutary influence of the independent-treasury

system upon commerce and all monetary operations.


The experience of the last year furnishes additional reasons, I regret to

say, of a painful character, for the recommendation heretofore made to

provide for increasing the military force employed in the Territory

inhabited by the Indians. The settlers-on the frontier have suffered much

from the incursions of predatory bands, and large parties of emigrants to

our Pacific possessions have been massacred with impunity. The recurrence

of such scenes can only be prevented by teaching these wild tribes the

power of and their responsibility to the United States. From the garrisons

of our frontier posts it is only possible to detach troops in small bodies;

and though these have on all occasions displayed a gallantry and a stern

devotion to duty which on a larger field would have commanded universal

admiration, they have usually suffered severely in these conflicts with

superior numbers, and have sometimes been entirely sacrificed. All the

disposable force of the Army is already employed on this service, and is

known to be wholly inadequate to the protection which should be afforded.

The public mind of the country has been recently shocked by savage

atrocities committed upon defenseless emigrants and border settlements, and

hardly less by the unnecessary destruction of valuable lives where

inadequate detachments of troops have undertaken to furnish the needed aid.

Without increase of the military force these scenes will be repeated, it is

to be feared, on a larger scale and with more disastrous consequences.

Congress, I am sure, will perceive that the plainest duties and

responsibilities of Government are involved in this question, and I doubt

not that prompt action may be confidently anticipated when delay must be

attended by such fearful hazards.


The bill of the last session providing for an increase of the pay of the

rank and file of the Army has had beneficial results, not only in

facilitating enlistments, but in obvious improvement in the class of men

who enter the service. I regret that corresponding consideration was not

bestowed on the officers, who, in view of their character and services and

the expenses to which they are necessarily subject, receive at present what

is, in my judgment, inadequate compensation.


The valuable services constantly rendered by the Army and its inestimable

importance as the nucleus around which the volunteer forces of the nation

can promptly gather in the hour of danger, sufficiently attest the wisdom

of maintaining a military peace establishment; but the theory of our system

and the wise practice under it require that any proposed augmentation in

time of peace be only commensurate with our extended limits and frontier

relations. While scrupulously adhering to this principle, I find in

existing circumstances a necessity for increase of our military force, and

it is believed that four new regiments, two of infantry and two of mounted

men, will be sufficient to meet the present exigency. If it were necessary

carefully to weigh the cost in a case of such urgency, it would be shown

that the additional expense would be comparatively light.


With the increase of the numerical force of the Army should, I think, be

combined certain measures of reform in its organic arrangement and

administration. The present organization is the result of partial

legislation often directed to special objects and interests; and the laws

regulating rank and command, having been adopted many years ago from the

British code, are not always applicable to our service. It is not

surprising, therefore, that the system should be deficient in the symmetry

and simplicity essential to the harmonious working of its several parts,

and require a careful revision.


The present organization, by maintaining large staff corps or departments,

separates many officers from that close connection with troops and those

active duties in the field which are deemed requisite to qualify them for

the varied responsibilities of high command. Were the duties of the Army

staff mainly discharged by officers detached from their regiments, it is

believed that the special service would be equally well performed and the

discipline and instruction of the Army be improved. While due regard to the

security of the rights of officers and to the nice sense of honor which

should be cultivated among them would seem to exact compliance with the

established rule of promotion in ordinary cases, still it can hardly be

doubted that the range of promotion by selection, which is now practically

confined to the grade of general officers, might be somewhat extended with

benefit to the public service. Observance of the rule of seniority

sometimes leads, especially in time of peace, to the promotion of officers

who, after meritorious and even distinguished service, may have been

rendered by age or infirmity incapable of performing active duty, and whose

advancement, therefore, would tend to impair the efficiency of the Army.

Suitable provision for this class of officers, by the creation of a retired

list, would remedy the evil without wounding the just pride of men who by

past services have established a claim to high consideration. In again

commending this measure to the favorable consideration of Congress I would

suggest that the power of placing officers on the retired list be limited

to one year. The practical operation of the measure would thus be tested,

and if after the lapse of years there should be occasion to renew the

provision it can be reproduced with any improvements which experience may

indicate. The present organization of the artillery into regiments is

liable to obvious objections. The service of artillery is that of

batteries, and an organization of batteries into a corps of artillery would

be more consistent with the nature of their duties. A large part of the

troops now called artillery are, and have been, on duty as infantry, the

distinction between the two arms being merely nominal. This nominal

artillery in our service is disproportionate to the whole force and greater

than the wants of the country demand. I therefore commend the

discontinuance of a distinction which has no foundation in either the arms

used or the character of the service expected to be performed.


In connection with the proposition for the increase of the Army, I have

presented these suggestions with regard to certain measures of reform as

the complement of a system which would produce the happiest results from a

given expenditure, and which, I hope, may attract the early attention and

be deemed worthy of the approval of Congress.


The recommendation of the Secretary of the Navy having reference to more

ample provisions for the discipline and general improvement in the

character of seamen and for the reorganization and gradual increase of the

Navy I deem eminently worthy of your favorable consideration. The

principles which have controlled our policy in relation to the permanent

military force by sea and land are sound, consistent with the theory of our

system, and should by no means be disregarded. But, limiting the force to

the objects particularly set forth in the preceding part of this message,

we should not overlook the present magnitude and prospective extension of

our commercial marine, nor fail to give due weight to the fact that besides

the 2,000 miles of Atlantic seaboard we have now a Pacific coast stretching

from Mexico to the British possessions in the north, teeming with wealth

and enterprise and demanding the constant presence of ships of war. The

augmentation of the Navy has not kept pace with the duties properly and

profitably assigned to it in time of peace, and it is inadequate for the

large field of its operations, not merely in the present, but still more in

the progressively increasing exigencies of the commerce of the United

States. I cordially approve of the proposed apprentice system for our

national vessels recommended by the Secretary of the Navy. The occurrence

during the last few months of marine disasters of the most tragic nature,

involving great loss of human life, has produced intense emotions of

sympathy and sorrow throughout the country. It may well be doubted whether

all these calamitous events are wholly attributable to the necessary and

inevitable dangers of the sea. The merchants, mariners, and shipbuilders of

the United States are, it is true, unsurpassed in far-reaching enterprise,

skill, intelligence, and courage by any others in the world. But with the

increasing amount of our commercial tonnage in the aggregate and the larger

size and improved equipment of the ships now constructed a deficiency in

the supply of reliable seamen begins to be very seriously felt. The

inconvenience may perhaps be met in part by due regulation for the

introduction into our merchant ships of indented apprentices, which, while

it would afford useful and eligible occupation to numerous young men, would

have a tendency to raise the character of seamen as a class. And it is

deserving of serious reflection whether it may not be desirable to revise

the existing laws for the maintenance of discipline at sea, upon which the

security of life and property on the ocean must to so great an extent

depend. Although much attention has already been given by Congress to the

proper construction and arrangement of steam vessels and all passenger

ships, still it is believed that the resources of science and mechanical

skill in this direction have not been exhausted. No good reason exists for

the marked distinction which appears upon our statutes between the laws for

protecting life and property at sea and those for protecting them on land.

In most of the States severe penalties are provided to punish conductors of

trains, engineers, and others employed in the transportation of persons by

railway or by steamboats on rivers. Why should not the same principle be

applied to acts of insubordination, cowardice, or other misconduct on the

part of masters and mariners producing injury or death to passengers on the

high seas, beyond the jurisdiction of any of the States, and where such

delinquencies can be reached only by the power of Congress? The whole

subject is earnestly commended to your consideration.


The report of the Postmaster-General, to which you are referred for many

interesting details in relation to this important and rapidly extending

branch of the public service, shows that the expenditure of the year ending

June 30, 1854, including $133,483 of balance due to foreign offices,

amounted to $8,710,907. The gross receipts during the same period amounted

to $6,955,586, exhibiting an expenditure over income of $1,755,321 and a

diminution of deficiency as compared with the last year of $361,756. The

increase of the revenue of the Department for the year ending June 30,

1854, over the preceding year was $970,399. No proportionate increase,

however, can be anticipated for the current year, in consequence of the act

of Congress of June 23, 1854, providing for increased compensation to all

postmasters. From these statements it is apparent that the Post-Office

Department, instead of defraying its expenses according to the design at

the time of its creation, is now, and under existing laws must continue to

be, to no small extent a charge upon the general Treasury. The cost of mail

transportation during the year ending June 30, 1854, exceeds the cost of

the preceding year by $495,074. I again call your attention to the subject

of mail transportation by ocean steamers, and commend the suggestions of

the Postmaster General to your early attention.


During the last fiscal year 11,070,935 acres of the public lands have been

surveyed and 8,190,017 acres brought into market. The number of acres sold

is 7,035,735 and the amount received therefor $9,285,533. The aggregate

amount of lands sold, located under military scrip and land warrants,

selected as swamp lands by States, and by locating under grants for roads

is upward of 23,000,000 acres. The increase of lands sold over the previous

year is about 6,000,000 acres, and the sales during the first two quarters

of the current year present the extraordinary result of five and a half

millions sold, exceeding by nearly 4,000,000 acres the sales of the

corresponding quarters of the last year.


The commendable policy of the Government in relation to setting apart

public domain for those who have served their country in time of war is

illustrated by the fact that since 1790 no less than 30,000,000 acres have

been applied to this object.


The suggestions which I submitted in my annual message of last year in

reference to grants of land in aid of the construction of railways were

less full and explicit than the magnitude of the subject and subsequent

developments would seem to render proper and desirable. Of the soundness of

the principle then asserted with regard to the limitation of the power of

Congress I entertain no doubt, but in its application it is not enough that

the value of lands in a particular locality may be enhanced; that, in fact,

a larger amount of money may probably be received in a given time for

alternate sections than could have been realized for all the sections

without the impulse and influence of the proposed improvements. A prudent

proprietor looks beyond limited sections of his domain, beyond present

results to the ultimate effect which a particular line of policy is likely

to produce upon all his possessions and interests. The Government, which is

trustee in this matter for the people of the States, is bound to take the

same wise and comprehensive view. Prior to and during the last session of

Congress upward of 30,000,000 acres of land were withdrawn from public sale

with a view to applications for grants of this character pending before

Congress. A careful review of the whole subject led me to direct that all

such orders be abrogated and the lands restored to market, and instructions

were immediately given to that effect. The applications at the last session

contemplated the construction of more than 5,000 miles of road and grants

to the amount of nearly 20,000,000 acres of the public domain. Even

admitting the right on the part of Congress to be unquestionable, is it

quite clear that the proposed grants would be productive of good, and not

evil? The different projects are confined for the present to eleven States

of this Union and one Territory. The reasons assigned for the grants show

that it is proposed to put the works speedily in process of construction.

When we reflect that since the commencement of the construction of railways

in the United States, stimulated, as they have been, by the large dividends

realized from the earlier works over the great thoroughfares and between

the most important points of commerce and population, encouraged by State

legislation, and pressed forward by the amazing energy of private

enterprise, only 17,000 miles have been completed in all the States in a

quarter of a century; when we see the crippled condition of many works

commenced and prosecuted upon what were deemed to be sound principles and

safe calculations; when we contemplate the enormous absorption of capital

withdrawn from the ordinary channels of business, the extravagant rates of

interest at this moment paid to continue operations, the bankruptcies, not

merely in money but in character, and the inevitable effect upon finances

generally, can it be doubted that the tendency is to run to excess in this

matter? Is it wise to augment this excess by encouraging hopes of sudden

wealth expected to flow from magnificent schemes dependent upon the action

of Congress? Does the spirit which has produced such results need to be

stimulated or checked? Is it not the better rule to leave all these works

to private enterprise, regulated and, when expedient, aided by the

cooperation of States? If constructed by private capital the stimulant and

the check go together and furnish a salutary restraint against speculative

schemes and extravagance. But it is manifest that with the most effective

guards there is danger of going too fast and too far. We may well pause

before a proposition contemplating a simultaneous movement for the

construction of railroads which in extent will equal, exclusive of the

great Pacific road and all its branches, nearly one-third of the entire

length of such works now completed in the United States, and which can not

cost with equipments less than $150,000,000. The dangers likely to result

from combinations of interests of this character can hardly be

overestimated. But independently of these considerations, where is the

accurate knowledge, the comprehensive intelligence, which shall

discriminate between the relative claims of these twenty eight proposed

roads in eleven States and one Territory? Where will you begin and where

end? If to enable these companies to execute their proposed works it is

necessary that the aid of the General Government be primarily given, the

policy will present a problem so comprehensive in its bearings and so

important to our political and social well-being as to claim in

anticipation the severest analysis. Entertaining these views, I recur with

satisfaction to the experience and action of the last session of Congress

as furnishing assurance that the subject will not fail to elicit a careful

reexamination and rigid scrutiny. It was my intention to present on this

occasion some suggestions regarding internal improvements by the General

Government, which want of time at the close of the last session prevented

my submitting on the return to the House of Representatives with objections

of the bill entitled "An act making appropriations for the repair,

preservation, and completion of certain public works heretofore commenced

under the authority of law;" but the space in this communication already

occupied with other matter of immediate public exigency constrains me to

reserve that subject for a special message, which will be transmitted to

the two Houses of Congress at an early day. The judicial establishment of

the United States requires modification, and certain reforms in the manner

of conducting the legal business of the Government are also much needed;

but as I have addressed you upon both of these subjects at length before, I

have only to call your attention to the suggestions then made.


My former recommendations in relation to suitable provision for various

objects of deep interest to the inhabitants of the District of Columbia are

renewed. Many of these objects partake largely of a national character, and

are important independently of their relation to the prosperity of the only

considerable organized community in the Union entirely unrepresented in

Congress.


I have thus presented suggestions on such subjects as appear to me to be of

particular interest or importance, and therefore most worthy of

consideration during the short remaining period allotted to the labors of

the present Congress.


Our forefathers of the thirteen united colonies, in acquiring their

independence and in rounding this Republic of the United States of America,

have devolved upon us, their descendants, the greatest and the most noble

trust ever committed to the hands of man, imposing upon all, and especially

such as the public will may have invested for the time being with political

functions, the most sacred obligations. We have to maintain inviolate the

great doctrine of the inherent right of popular self-government; to

reconcile the largest liberty of the individual citizen with complete

security of the public order; to render cheerful obedience to the laws of

the land, to unite in enforcing their execution, and to frown indignantly

on all combinations to resist them; to harmonize a sincere and ardent

devotion to the institutions of religions faith with the most universal

religious toleration; to preserve the rights of all by causing each to

respect those of the other; to carry forward every social improvement to

the uttermost limit of human perfectibility, by the free action of mind

upon mind, not by the obtrusive intervention of misapplied force; to uphold

the integrity and guard the limitations of our organic law; to preserve

sacred from all touch of usurpation, as the very palladium of our political

salvation, the reserved rights and powers of the several States and of the

people; to cherish with loyal fealty and devoted affection this Union, as

the only sure foundation on which the hopes of civil liberty rest; to

administer government with vigilant integrity and rigid economy; to

cultivate peace and friendship with foreign nations, and to demand and

exact equal justice from all, but to do wrong to none; to eschew

intermeddling with the national policy and the domestic repose of other

governments, and to repel it from our own; never to shrink from war when

the rights and the honor of the country call us to arms, but to cultivate

in preference the arts of peace, seek enlargement of the rights of

neutrality, and elevate and liberalize the intercourse of nations; and by

such just and honorable means, and such only, whilst exalting the condition

of the Republic, to assure to it the legitimate influence and the benign

authority of a great example amongst all the powers of Christendom.


Under the solemnity of these convictions the blessing of Almighty God is

earnestly invoked to attend upon your deliberations and upon all the

counsels and acts of the Government, to the end that, with common zeal and

common efforts, we may, in humble submission to the divine will, cooperate

for the promotion of the supreme good of these United States.


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