Home › Taylor's First Annual Message › Taylor's First Annual Message: Nicaragua

Taylor's First Annual Message: Nicaragua

A contract having been concluded with the State of Nicaragua, by a company composed of American citizens, for the purpose of constructing a ship canal through the territory of that State, to connect the Atlantic and Pacific oceans, I have directed the negotiation of a treaty with Nicaragua, pledging both governments to protect those who shall engage in and perfect the work. All other nations are invited by the State of Nicaragua to enter into the same treaty stipulations with her; and the benefit to be derived by each from such an arrangement will be the protection of this great inter-oceanic communication against any power which might seek to obstruct it, or to monopolize its advantages. All states entering into such a treaty will enjoy the right of passage through the canal on payment of the same tolls. The work, if constructed under these gaurantees, will become a bond of peace instead of a subject of contention and strife between the nations of the earth. Should the great maritime states of Europe consent to this arrangement-and we have no reason to suppose that a proposition so fair and honorable will be opposed by any-the energies of their people and ours will co-operate in promoting the success of the enterprise, I do not recommend any appropriation from the national treasury for this purpose ; nor do I believe that such an appropriation is necessary. Private enterprise, if properly protected, will complete the work should it prove to be feasible. The parties who have procured the charter from Nicaragua for its construction desire no assistance from this government beyond its protection ; and they profess that, having examined the proposed line of communication, they will be ready to commence the undertaking whenever that protection shall be extended to them. Should there appear to be reason, on examining the whole evidence, to entertain a serious doubt of the practicability of constructing such a canal, that doubt could be speedily solved by an actual exploration of the route. Should such a work be constructed under the common protection of all nations for equal benefits to all, it would be neither just nor expedient that any great maritime state should command the communication. The territory through which the canal may be opened ought to be freed from the claims of any foreign power, No such power should occupy a position that would enable it hereafter to exercise so controlling an influence over the commerce of the world, or to obstruct a highway which ought to be dedicated to the common uses of mankind. The routes across the isthmus at Tehuantepec and Panama are also worthy of our serious consideration. They did not fail to engage the attention of my predecessor. The negotiator of the treaty of Guadalupe Hidalgo was instructed to offer a very large sum of money for the right of transit across the isthmus of Tehuantepec. The Mexican government did not accede to the proposition for the purchase of the right of way, probably because it had already contracted with private individuals for the construction of a passage from the Guasacualco river to Tehuantepec. I shall not renew any proposition to purchase for money a right which ought to be equally secured to all nations on payment of a reasonable toll to the owners of the improvement, who would, doubtless, be well contented with that compensation and the guarantees of the maritime states of the world, in separate treaties negotiated with Mexico, binding her and them to protect those who should construct the work. Such guarantees would do more to secure the completion of the communication through the territory of Mexico than any other reasonable consideration that could be offered ; and as Mexico herself would be the greatest gainer by the opening of this communication between the Gulf and the Pacific Ocean, it is presumed that she would not hesitate to yield her aid in the manner proposed to accomplish an improvement so important to her own best interests. We have reason to hope that the proposed railroad across the isthmus of Panama will be successfully constructed under the protection of the late treaty with New Grenada, ratified and exchanged by my predecessor on the 10th day of June, 1848, which guarantees the perfect neutrality of the isthmus, and the rights of sovereignty and property of New Grenada over that territory, "with a view that the free transit from ocean to ocean may not be interrupted or embarrassed" during the existence of the treaty. It is our policy to encourage every practicable route across the isthmus which connects North and South America, either by railroad or canal, which the energy and enterprise of our citizens may induce them to complete ; and I consider it obligatory upon me to adopt that policy, especially in consequence of the absolute necessity of facilitating intercourse with our possessions on the Pacific. The Position of the Sandwich Islands, with reference to the territory of the United States on the Pacific, the success of our persevering and benevolent citizens who have repaired to that remote quarter in Christianizing the natives and inducing them to adopt a system of government and laws suited to their capacity and wants, and the use made by our numerous whale-ships of the harbors of the islands as places of resort for obtaining refreshments and repairs, all combine to render their destiny peculiarly interesting to us. It is our duty to encourage the authorities of those islands in their efforts to improve and elevate the moral and political condition of the inhabitants ; and we should make reasonable allowances for the difficulties inseparable from this task. We desire that the islands may maintain their independence, and that other nations should concur with us in this sentiment. We could in no event be indifferent to their passing under the dominion of any other power. The principal commercial states have in this a common interest, and it is to be hoped that no one of them will attempt to interpose obstacles to the entire independence of the islands.

The receipts into the treasury for the fiscal year ending on the thirtieth of June last were, in cash, forty-eight million eight hundred and thirty thousand ninety-seven dollars and fifty cents ($48,830,097.50), and in treasury notes funded, ten million eight hundred and thirty-three thousand dollars ($10,833,000), making an aggregate of fifty-nine million six hundred and sixty-three thousand ninety-seven dollars and fifty cents ($59,663,097.50) ; and the expenditures for the same time were, in cash, forty-six million seven hundred and ninety-eight thousand six hundred and sixty-seven dollars and eighty-two cents ($10,833,000), making an aggregate of fifty-seven million and sixty-seven dollars and eighty-two cents ($57,631,667.82). The accounts and estimates which will be submitted to Congress in the report of the Secretary of the Treasury, show that there will probably be a deficit occasioned by the expenses of the Mexican war and treaty, on the first day of July nest, of five million eight hundred and twenty-one dollars and sixty-six cents($5,828,121.66), and on the first day of July, 1851, of ten million five hundred and forty-seven thousand and ninety-two dollars and seventy-three cents ($10,547,092.73), making in the whole a probable deficit, to be provided for, of sixteen million three hundred and seventy-five thousand two hundred and fourteen dollars and thirty-nine cents ($16,375,214.39). The extraordinary expenses of the war with Mexico, and the purchase of California and New Mexico, exceed in amount his deficit, together with the loans heretofore made for those objects, I therefore recommend that authority be given to borrow whatever sum May be necessary to cover that deficit, I recommend the observance of strict economy in the appropriation and expenditure of public money.