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WILMHGTOX, 5. CM THURSDAY, DECE5IBER 7, 1865.
PRICE FIVE CEXTS.
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:. One o'clock P.fffli.
1 1 1 ii.'. i, ,; , . i i -. , ., ,.
PRESIDENT'S
HI
MESSAGE.
Felknd- Citizens of the Senate & '
To express gratitude to God, inihe name of
the people, for the preservation of the United
States, is my first duty in addressing you, r
Our thoughts next revert to the death of the
late President by an act of parricidal treason.'
The grief of the i nation is still fresh it finds
some solace in the consideration tjat he lived
to enjoy the highest proof of ite confidence by
entering on the renewed term of the Chief
Magistracy, to which he had been elected ;
that he brought the civil war substantially to
a close ; that hislos was deplored in all parts
of the Union ; and that foreign nations have
rendered justice to his memory.
His remval cast upon me a heavier weight
of care than ever devolved upon any one of
his predecessors. To fulfill myr trust I need
the support and cbnfidenciVof all who are as
sociated with me in the jarieus, departments
of Government, and the support and , confi
dence of the peop'e. There is but one way
in which I can hope to gain their' necessary
aid: it is, to state with frankness the prin
ciples which guide my conduct, and their ap
plication to the present state of affairs, well
aware that the efficiency of my labors will, in
a great measure, depend on your and their un
divided approbation: 5;".'
VTHB RELATIVE POSITION OP THE STATES TO THE,
0NIOX. ' V
The union of the United States of America
was intended by its authors to last as long as
the States themselves shall last. " The Union
sit all bu perpetual ,r arc the words, of the
confederation. "To fopm a morb perfect
Union," by an ordinance of the people of the
United States, is the declared purpose 'of the
constitution. The hand of Divine Providence
was never more plainly visible in the affairs of
men than in the framing and adopting of that
instrument. It is, beynd comparison, the
greatest event in American history ; and in
deed is it not, of all events of modern times,
the most pregnant with consequences for
every people of the earth.
The members of the convention which pre
pared it, brought to their work the experience
of the confederation, of their several states,
and of other republican governments, old and
new ; but they needed and they obtained a
wisdom superior to experience. And when
for its validity it required the approval of a
people that occupied a, large part of a conti
nent and acteu separately in many distinct
conventions, what is more wonderful than
that, after earnest contention and long discus
sion,' all feelings and all opinions were ulti
mately drawn in one way to its support? .
The constitution tu which life was thus im
parted, contains within itself ample resource
For its own preservation. It has power to en
force the laws, punish treason, and ensure
domeslic tranquility. In case of the usurpa
tion of the government of a state by one man
or rim oligarchy, it becomes a duty of the
United States to make good the guarantee to
that State of a republican form of government,
and so to maintain the homogeneousness of all.
Does the lapse of time ; reveal defects ? A
simple mode of amendment is provided in the
constitution itself, so that its conditions can
alwayslbe made to conform to the require
ments If advancing civilization. No room is
allowed even for the thought of a possibility
of its cdniug to an end.
Andtuese nowers of self-preservation have
always teen asserted in their complete in
tegrity ly every patriotic Chief Magistrate-by
JetFersoiand Jackson, not less than by Wash..
ington aid Madison. The parting advice of
theFatUr of Ins Country, while yet presi
dent, to he people of the United States, was,
that " g tree constitution, which was the
work of ieir hands, might be sacredly main
tained;"nd the inaugural words of President
Jefferson lield up " tne preservation oi trie
States is a limited gOTernment; and so is every
stftte igoTernment a limited gbvernmeht. ' With
us, this idea of limitation spreads through
every; form of administration, general, state
and. municipal, and rests on the great; distin
guishing principle of the recognition of the
rights of. man. The ancient republics absorb
d the individual in the state, prescribed bis
teligion, and controlled his activity.
: 'The Americm system rests on, the assertion
of the equal right of every man to life, liber
ty; aiid the pursait of happiness;! to freedom
of conscience, to the culture and exercise of ail
his faculties. As a consequence, the state Gov
ernment is limited, as to the General Govern
menrin. th'e interest of the Union, as to the
individual citizen in the interest of freedom,
;Statesj with j proper Jiraitations of. power,
are essentia! to the existence of the 'Constitu
tion Of the United States. At the very com.
!ncomerrtf when we assumed a place among
the powers of .the earth, the Declaration of
Independence was adopted by States, so, also
were the Articles of Confederation: and when
the people of the United States" ordained and
established the Constitution, it was the as
sent of the states, one by'one, which gave it
vitality. ' In the event, too, of any amend
ment to the Constitution, the proposition of
Conejresspeeds the confirmation of States.
j Without states, one great branch of the
legislative government would be wanting.
Atid, if wj look beyond the letter of the con
8ttutiQn to the character of our country, its
capacity for comprehending within its juris
diction a vast continental empire is due to the
system of states: The best security for the
perpetual existence of the states is the "su
preme authority? of .the constifution of the
United States; ' ' '
(The perpetuity of the constitution brings
with it the perpetuity of the states; their
mutual relation makes. us. what. wc are, and in
our political system their connexion is indis
soluble. The whole cannot exist without the
parts, nor the, parts without the whole. So
long as the -constitution of the United States
endures, the states Mill endure; the destrucs
tiou of the one is the destruction of the
other fthe preservation of the one is the pres
ervation Of the other.
I have thus explained my vie ws ef the mu
tual relations -of the constitution and the
states; becauso they unfold the principles on
which I hayepught to solye,.the, momentous
questions and overcome the appalling difficult
ties that met me at lhjB veryjommencement
of my administration. It has been my stead
fast object to escape -from the sway of mo
mentary passions, and to derive' a healing
poi icy from the fundamental and unchanging
principles of the constitution.
WHAT TO DO WITH THE CONQUEEED TERRITORY.
I found the states suffering 'from the effects
of a civil war. Resistance to the General Gov
ernment appeared to have exhausted itself
The United States had recovered possession of
their forts and arsenals; and their armies were
in the occupation of every state which had
attempted to secede. Whether the territory
withm the limits of those States should be held
as conquered territory, under military authority
emanating from the president as the head of the
powc r of the general government the power of
pardon. '
As no State can throw a defence over the crime
of treason, the power of pardon is exclusively
vested in the Executive Government of the United
States. Ij exercising that power, I hare taken
every precaution to connect it with the clearest
recognition of the binding force of the laws of the
United 8tates, and an unqualified acknowledg
ment of the great social change of condition in
regard to slavery which ; has grown out of the
war.
The next step which I have taken to restore
the constitutional relations of the States, has been
an invitation to tliem to participate in the hfah
office of amending the Constitution, Every pa
triot must wish for a general amnesty at the ear
liest epoch consistent with public safety. For
this great end there is need of a concurrence of
all opinions, and the spirit of mutual conciliation.
All parties in the late terrible conflict must work
together in harmony.
It is not too much to ask, in the name of the
whole people, that oo the one side, the plan of
restoration shall proceed in conformity with a
willingness to cast the disorders of the past in
to oblivion ; and that on the other, the evidence
of sincerity in the future maintenance of the
.Union shall be put beyond anv doubt hv the
ratification of the proposed amendment to the
constitution, which provides for the abolition of
slavery forever within the limits of oar country.
So long as the adoption of this amendment is
delayed, so long will doubt, and jealousy, aod
uncertainty prevail. v
This is the measure which will efface the sad
memory of the past : this is the measure which
will most certainly call population, and capital,
and security to those parts of the Union that
need them most. Indeed it is not too much to
ask of the states which are now resuming their
places in the family of the Union to give this
pledge of perpetual loyalty and peace. Until it
is done, the past, however much we may desire
it, will not be forgotton.
The adoption :fthe amendment reunites us
beyond all power of disruption. It heals the
wonuu umt is sun imperieciiy ciosea ; it re
moves slavery, the element which has so lone
perpiexea ana aeviaea tne country ; it aiakes
of us once more a united people, renewed and
strengthened, bound more than ever to mutual
affection and support.
The amendment to the constitution being
adopted, it would remain for the states, whose
powers have been so long in abeyance, to re-
sunr.e their places in the two branches of the
national legislature, and thereby complete the
work of restoration. Here it is for you, fellow
citizens of the senate, and for you, fellow-citizens
of the house of representatives, to judge,
each of you for yourselves, of the elections re
turns, and qualifications of your own members.
The full assertion of the powers of the gen
eral government requires the holding of circuit
courts of the United States within the districts
where their authority has been interrupted. In
the present posture of our public affairs, strong
objections have been urged to holding those
courts in any of the states where the rebellion
has existed: and it was ascertained, by inquiry,
that the circuit court of the United States would
not be I.-'lu within the district of Virginia during
the autuniu or early winter, nor until congress
should have "an oicuy to consider and act
on the whole subject."
To your deliberations the restoration of this
branch of the civil authoritv of the United States
army, was the first question that presented itself is therefore necessarily referred, with the hope
Were it otl
Hiik beneatii
tico would
obstructed b
i i : : i : . , i-- . i ;
p-encrai cq.'crnment, m u guusmuuuiiai vig
or ns theSkheet anchor of our pcacs at home
and safety abroad." Thp constitution is the
work of 'the people of the United States,"
and it shoTjU be as indestructable as the people.
It is noivtrange that the framers of thecot?1-
stitution. fvhrh had no model in the past
should not lave fully comprehetfUed the ex
cellence on .heir own work. Jiresh from a
struggle aainst 'arbitrary power, many pat
riots suffered from harrassing fears of an ab
sorption ofj the state governments by the gene
ral govcrnuW, and many from a dread that
the states uld break away from their orbits.
But the vert greatness of our country should
allay the arfcrehension of encroachments by
the irenera
The subjlcts that come unquestionably
within 'its jurisdiction are so numerous,
that it mustlever naturallv refuse to be em-
harassed bi questions that lie,. beyond it-
ferwise, tho Executive , would
the burden; the channels oi jus-
blocked j legislation would be
excess; so that there is a great
er tnrnntationtto exercise some ot the tunc-
tionsof the Gtaeral Government through the
states than lo trespass on their rightful
phere. "The absolute acquiescence in the
decisions of trft majority," was, at the be
ginning of thelcmtury, enforced by Jefferson
'as tho vital rfrhciple of republics," and' the
events of the mt four yeara have established,
we will hope fdmrer, that there lies no ap
rpal to forceV I
The maintaiAaace of the Union, brings with
it "the sunnortl of. the state Governments in
oil thoir rmhTsrFkJit it not Olie of the
rights of anv state Government to renounce
iis own place id the Union, or to nullify the
laws of. Union. Tbe largest liberty is to be
- maintained :n tnfl Hiso.tiSHinn Oi tne acts ,.oi
the Federal Government; but there is no ap
peal from its laws, except to tho ; various
branches of that Government itself, or to the
rieonle who grant to the members of the leg
islature and of the Executive Department no
fnnro but a .limited one. and in that manner-
lr?nv!a retain the imiWPTS of redress. , u
IXuWho. ortTroreitrntw nf fchft state" is the kn.
cnage of the Confederacy, and not the; lan
cuace of the Constitution. The latter con
tKa Aranhatic words : 4 "The - Constitu
,i laws nf the. Unitckl States w,hch
u..ii Ko m.idp. in nursuance thereof, and at
t;00 made or vhieh shall be made under
the authority of the United States, shall bo
the supreme law ot the land; and the judges
; State shall bfl , bound thereby, any-
thin" in the constitution or laws of any State
. h inn frarv? notwit bstandinz j
Certainly : the Government of the 'United
for decision.
Now, military governments, established for an
indefinite period, would have offered no security
for the early suppression of discontent ; would
have divided the people into vanquishers and the
vanquished; and would have envenomed hatred,
rather than have restored affection. Once estab
lishedj no precise. limit to their continuance was
conceivable. They would have occasioned an in
calculable and exhausting expense. Peaceful
emigration to and from that portion of the coun
try is one of the best means that can be thought
of for the restoration of harmony; and that emi
gration would have been prevented, for what emi
grant from abroad, what industrious citizen at
home, would place himself willingly under mili
tary rule"
The chief persons who would have followed in
the train of the army would have been depend
ents on the general governmsnt, or men who ex
pected profit from the miseries of ther erring
fellow-citizens. The powers of patronage and
rule which would have been exercised, under the
president, over a vast, and populous, and natur
ally wealthy region, are greater than, unless un
der extreme necessity, I should be willing to en
trust to any one man; they are such as, for my
self, I could never, unless on occasions of great
emergency, consent to exercise. The wilful use
of such powers, if continued through a period of
years, would have endangered the purity of the
general administration and the liberties of the
staes which remained loyal.
lUV.dos the policy of military rule over a con
quered territory would have implied that the
states whose inhabitants may have taken part in
the rebellion had, by the act of those inhabitants,
ceased to exist. But the true theory is, that all
pretended acts of secession were, from the be
ginning, null and void. The states cannot com
mit treason, nor screen the individual citizen who
may have commited treason,any more than they can
make valid treaties or engage in lawful commerce
with any foreign power. The states attempting
to secede placed themselves in a condition where
their vitality; was impaired, but not extinguished;
their functions suspended, but not destroyed.
THE DUTY OF THE GENERAL GOVERNMENT IN THE
WORK OP RESTORATION.
But if anv state neglects to perform its offices,'
there is the more need that the general govern
ment should maintain all its authority, and as
soon as practicable, resume the exercise of all
its functions. On this principle I have acted,
and have gradually and quietly, and by almost
imperceptible steps, sought to restore the right
ful energy of the general government and of the
states. To that -end, provisional governors have
been appointed for the states, conventions called,
governors elected, legislatures assembled, and
senators and representatives chosen to the con
gress of the United States.
At the same time, the courts of the united
States, as far as could be done, have been reopen
ed, so that the laws of the United States may be
enforced through their agency. The blockade
has been removed and the custom-houses re-es-
that early provision will be made for the resump
tion of all its former functions. It is manifest
that treason, most flagrant in character, has been
committed. Persons who are charged with its
commission should have fair and impartial trials
in the highest civil tribunals of the countty, in
order that Uie constitution and laws may be fully
vindicated; the truth clearly established and
affirmed that treason is a crime ; that traitors
should be punished and the offence made infam
ous ; and, at the same time, that the question
may be judicially settled, finally and forever, that
no state of ifs own will has the right to renounce
its place in the union.
THE GOVERNMENT A2D THE- FREEDMEN.
The relations of the general government to
wards the four millions of inhabitants whom the
war has called into freedom, have engaged my
most serious consideration. On the propriety of
attempting to make the freedmen electors by the
proclamation of the executive, I took for my
counsel the constitution itself, the interpretations
of that instrument by its authors and their con
temporaries, and recent legislation by congress.
When, at the first movement towards independ
ence the cougress of the United States instructed
the several states to institute governments of their
own, they left each state to decide for itself the
conditions for the enjoyment of the elective
franchise.
During the period of the confederacy, there
continued to exist a very great diversity in the4
qualifications of electors in the several states, and
even within a state a distinction of qualifications
prevailed with regard to the officers who were
to be chosen. The constitution of the United
States recognises these diversities when it enjoins
that, in the choice of members of the house of
representatives of the United States, "the elec
tors in each state shall have the qualifications re
quisite for electors of the most numerous branch
of the state legislature." After the formation of
the constitution, it remained, as before, the uni
form usageifor each state to enlarge the body of
its electors, according to its own judgment ; and,
under this system, one state after another has
proceeded to increase the number of its electors,
until now universal sutrxage, or sometmng very
near to it, is the general rule.
So fixed was this reservation of power in the
habits of the people, and so unquestioned has
been the interpretation of the constitution, that
during the civil war the kite president never har
bored the purpose certainly never avowed the
nurnose of disresrardins it : and in the acts of
congress, during that period, nothing can be
found which, during the continuance of hostili
ties, much less after their close, would have sane
tioned any departure by the executive from a
policy which has so uniformly obtained.
Moreover, a concession, of the elective franchise
to the freedmen, by act of the president of the
United States,must have been extended to all col
ored men, wherever found, and so must have es
tablished a change of suffrage in the northern,
middle and western states, not less than in the
southern and southwestern. Such an act would
have created a new class of voters, and wnld
their liberty and their property, their right to j
labor, and their right to claim the just return of
their labor. I cannot too strongly urge a dispas
sionate treatment of this subject, which should
be carefully kept aloof from all party strife. We
must equally avoid hasty assumptions of any
natural impossibilitv for the two races to live
side by side, in a state of mutual benefit and
good will. The experiment involves us in no in
consistency ; let us then, go on and make that
experiment in good faith, and not be too easily
disheartened. The country is in need of labor,
and the freedmen are in need of employment,
culture and protection. While their right oC vol
untary migration and expatriation is not to be
questioned, I would not advise their forced re
moval and colonization.
Let us rather encourage them to honorable and
useful industry, where it may be beneficial to
themselves and to the country ; and, instead of
hasty anticipations of the certainty of failure, let
there be nothing wanting to the fair trial of the
experiment. The change in their condition is the
substitution of labor by contract for the status of
slavery. The freedman cannot fairly be accused
of unwillingness to work, so long as a doubt re
mains about his freedom of choice in his pursuits,
and the certainty of his recovering his stipulated
waces. In this the interests of the employer and
the employed coincide.
The employer desires in his workmen spirit and
alacrity, and these can be permanently secured
in no other way. And if the one ought to be
able to enforce the contract, so ought the other.
The public interest will be best promoted if the
several states will provide adequate protection
and remedies for the freedmen. Until this is in
some way accomplished, there is no chance for
the advantageous use of their labor ; and the
blame of ill-success will not rest on them.
I know that sincere philanthropy is earnest for
the immediate realization of its remotest aims;
but time is always an element in reform. It is
one of the greatest acts on record to have brought
four millions of people into freedom. The career
of free industry must be fairly opened to them;
and then their future prosperity and condition
must, after all, rest mainly on themselves. If
they fail, and so perish away, let us be careful
that the failure shall not be attributable to any
denial of justice. In all that relates to the des
tiny of the freedmen, we need not be too anxious
to read the future; many incidents which, from a
speculative point of view, might raise alarm, will
quietly settle themselves.
ADVANTAGES OF FREE LABOR.
Now that slavery is at? an end, or near its end,
the greatness of its evil, in the point of view
of public economy, becomes more and more
apparent. Slavery was essentially a monopoly
of labor, and as such locked the states where
it prevailed against the incoming of free indus
try. Where labor was the property of the capi
talist, the white man was excluded from em
ployment, or had but the second best chanceof
finding it, and the foreign emigrant turned
away from the region where his condition would
be so precarious. With the destruction of
the monopoly, free labor will hasten from all
purts of the civilized world to assist in develop
ins various and immeasureable resources which
have hitherto lain dorment.
The eight or nine states nearest the Gulf of
Mexico have a soil of exuberent fertility, a clu
mate friendly to long life, and can sustain a
deuser population than is found as yet in any
part of our country. And the future influx
of population to them will be mainly from the
north, or from the most cultivated nations in Eu
rope. From the sufferings that have attended
them during our late struggle, let us Wok away
to future, which is sure to be laden for them
with greater prosperity than has-ever before
been kuown. The removal of the monopoly of
slave labor is a pledge that those regions will
be peopled by a numerous and enterprising
population, which will vie with any in the
Union in compactness, inventive genius, wealth
and industry.
Our government springs from and was made
for the people not the people for the govern
ment. To them it owes allegiance; from them it,
must derive its courage, strength and wisdom.
But, while the government is thus bound to de
fer to the people, from whom it derives its exist
ence, it should, from the very consideration of its
origin, be strong in its power of resistance to the
establislunent of inequalities. Monopolies, per
petuities and class legislation are contrary to the
genius of free government, and ought not to be
allowed. Here there is no room for favored
classes or monopolies, the principle of our gov
ernment is that of equal laws and freedom of
industry.
Whenever monopoly attains a foothold, it is
sure to be a source of danger, discord and
trouble. We shall but fulfill our duties as legis
lators by according " equal and exact justice to
all men," special privileges to none. I he gov
ernment is subordinate to the people; but, as the
aoent and representative of the people, it must
be held superior to monopolies, which in them
selves, ought never to be granted, and which,
where they exist, must be subordinate and yield
to the government.
UNRESTRICTED COMMERCE BETWEEN THE STATES.
The constitution confers on congress the right
to regulate commerce among the several states.
It is of the first necessity, for the maintenance" of
the union, that that commerce should be free and
unobstructed. No state can be justified in any
device to tax the transit of travel and commerce
between states. Xhe position of many states is
such that, if they were allowed to take advantage
the 30th day of June hut, the total number of
pensioner was 85,966, requiring for their annual
pay, exclusive of expenses, the sum of $3,023,
445. The number of applications that have been
allowed since that date will require a large in
crease of this amount for the next fiscal year.
I he means lor the payment of the stipends due.
under existing laws, to our disabled soldiers and
sailors, and to the families of such as have per-
shed in the service of the country, will no doubt
be cheerfully and promptly granted.. A grateful
people will not hesitate to sanction any measures
having for their object the relief of soldiers muti
lated and families made fatherless in the efforts
to preserve our national existence.
POSTAL AFFAIRS.
The report of the postmaster general presents
an encouraging exhibit of the operations of the
postoffice dejiartment during the year. The
revenues of the past year from the loyal states
alone exeeded the maximum annual receipts
from all the states previous to the rebellion in
ine sum oi o,UvKSuyi; ana tne annual average laws.
increase of revenue during the last four years,
compared with the revenues of the four years
immediately preceding the rebellion, was $3,533,
845. The revenues of the last fiscal year amount
ed to 14.556.158 and the expenditures to $13,
694,728, leaving a surplus of receipts over expen
ditures of $831,430.
Progress has been made in restoring the postal
service in the southern states. The views pre
sented by the postmaster general against the po
licy of granting subsidies to ocean mail steam
ship lines upon established routes, and in favor
of continuing the present system, which limits
the compensation for ocean service to the postage
earnings, are recommended to the careful con
sideration of congress.
THE NAVY DEPARTMENT.
It appears, from, the report of the secretary of
the navy, that while, at the commencement of
the present vear, there were in commisson 530
vessels of all classes and descriptions, armed with
3,000 guns, and manned by 51,l00 men, the num
ber of vessels at present in commission is 117,
with 830 guns, and 12,128 men. By this prompt
reduction of the naval forces, the expenses of the
government have been largely diminished, and a
number of vessels purchased for naval purposes
from the merchant marine, have been returned to
the peaceful pursuits of commerce
Since the suppression of active hostilities our
foreign squadrons have been re-established, and
consists of vessels much more efficient than those
emploved on similar service previous to the re
bellion. The suggestion for the enlargement of
the navy yards, and especially for the establish
ment of one in fresh water for iron clad vessels,
is deserving of consideration, as is also the re
commendation fdr a different location and more
ample grounds for the naval academy.
THE WAR DEPARTMENT.
In the report of the secretary of war, a general
sumnianr is given of the military campaigns of
1864 and 1865, ending in the suppression of arm
ed resistance to the national authoritv in the in
surgent states. The operations of the genera
administrative bureaus of the war department du
ring the past vear are detailed, and an estimate
made" of the appropriations that will be required
for military purposes in the fiscal year commenc
ing the 30th day of June, 1866. The nationa
militarv force on the 1st of Mav, 1865. numbered
1,000,516
It is proposed to reduce the military establish
ment to a peace footing, comprehending fifty
thousand troops of all arms, organized so as to
admit of an enlargement by filling up the ranks
to eighty-two thousand six hundred, if the cir
cumstances of the country should require an aug
mentation of the army. The volunteer force has
already been reduced by the discharge from ser
vice of over eight hundred thousand troops, and
the department is proceeding rapidly in the work
ot further reduction.
The war estimates are reduc.d from $516,
240,130 to $38,814,461, which amount in the
opinion of the department, is adequate for a
peace establishment. The measures of retrench
ment in each bureau and branch of the service
exhibit a diligent economy worthy of commen
dation. Reference is also made iu the report to
the necessity of providing for a uni:orm militia
system, and to the propriety of making suitable
provision for wounded and disabled officers and
soldiers.
THE TREASURY DEPARTMEXT. T
The revenue system of the country is a 'sub
ject of vital interest loits houor and prosperity,
and should command the earnest consideration
of congress. The secretary of the treasury
will lay before you a full and detailed report of
the receipts and disbursements of the last fiscal
year, of the first quarter of the present fiscal
year, of the probable receipts and expenditures
for the other three quarters, and the estimates
for the year following the 30th of June, 181.
I might content myself with a reference to that
report, in which you will find all the informal
tion required for your deliberations and deci
sion. But the paramount importance of the subject
so presses itself on my own mind that I cannot
but lay before you my views of the measures
which are required for the good character, and, I
might almost say, for the existence of this people.
The life of a republic lies certainly in the energy,
virtue and intelligence of its citizens; but it is
equally true that a good revenue system is the
life of an organized government. I meet you at
a time when the nation has voluntarily burthened
itself with a debt unprecedented m our annals.
Vast as is its amount, it fades away into noth-
The gradual reduction f the currency is ti
only measure that can save the basine rf
the country from disastrous calamities; and tbi.
can be almost imperceptibly accomplished by
gradually funding the national circulation ia se
curities that may be made redeemable at the pleas
ure of ill? government. ,
Our debt is doubly secure first ,in the actual
wealth and sUU greater undeveloped resources
of the country, and next in the character of our
institutions. The most intelligent observers
among political economists have not failed to re
mark that the public debt of the country is safe
in proportion as its people are free j that the debt
of a republic is the safest of all. Our history
confirms and establishes the theory, and b, I
firmly believe, destined U give it a still more sig
nal illustration. Tbe secret or .uua superiority
springs not ioerely from the fact that in a repub
lic the national obligations are distributed more
widely through countless numbers in all classes
of societv ; it has its root in the character of our
tablished in ports of entry, so that the revenue of haye X)eea an assumptj0n of power by the pres
the United States may be collected. The Post iHpnt wWrh hmr ;n the constitution or laws
Office Department. Tenews its ceaseless activity,
and the General Government is thereby enabled
to communicate promptly with its officers and
agents.
The courts bring security to persons and pro
perty ; the opening of the ports invites the restora
tion of industry and commerce : the post office
renews the facilities ot social intercourse and oi
business. And is it not happy for us all, that the
of the United States would have warranted.
THE QUESTION OF FRANCHISE REFERRED TO THE
-4 STATES.
On the other hand, every danger of conflict is
avoided when the settlement of tha question is j
referjed to the several states. They can, each
for itself, decide on the measure, and whether it
is to be adopted at once and absolutely, or intro
duced gradually and with conditions. In my
of it for purposes of local revenue, the commerce into nothing compared with the countless bless
between states might be injuriously burdened, or
even virtually prohibited.
It is best, while the country is still young, and
while the tendency to dangerous monopolise of
this kind is still feeble, to use the power of
congress so as to prevent any selfish impe
diment to the free circulation of men and mer
chandise. A tax on travel and merchan
dise. in their transit, constitutes one of the
worst forms of monopoly, and the evil is increas
ed if coupled with a denial of the choice of route.
When the vast extent of our country is consid
ered. it is plain that every obstacle to the free
circulation of commerce between the states ought
to be sternly guarded against by appropriate
lemslation, within the limits of the constitution.
INTERIOR DEPARTMENT.
report of the secretary of ttor-4rrterior
explains the condition of the pubhclands, the
transactions of the patent office and the pen
sion bureau, the management of our Indian
affairs, the progress made in the construction
of the Pacific railroad, and furnishes informa
tion in reference to matters of local interest in
the District of Columbia. It also presents evi
dences of the successful operation of the home
stead act, under the provisions of which 1,160,
533 acres of the public lands were entered dur-
The
ings that will be conferred upon our country and
upon man by the preservation of the nation s
life.
Now, on the first occasion of the meeting of
congress since the return of peace, it is of the ut
most importance to inaugurate a lust policy,
which shall at once be put in motion, and which
shall commend itself to those who come after us
for its continuance. We must aim at nothing
less than the complete effacement of the financial
evils that necessarily followed a state of civil war.
We must endeavor to apply the earliest remedy
to the deranged state of the currency, and not
shrink from devfting a policy which, without be
ing oppressive to the people, shall immediately
begin to effect a reduction of the debt, and if per
sisted in, discharge it fully withm a definitely
fixed number of years.
It is our first duty to prepare in earnest for our
recovery from the ever-increasing evils of an
irredeemable currency, without a sudden revul
sion, and yet without an untimely procrastina
tion." For that end, we must, each in our re
spective positions, prepare the way. I hold it
the duty of the executive to insist upon frugality
in. the expenditures; and a sparing economy is
itself a great national resource. Of the banks to
which authority has been given to issue notes
Here all men contribute to the public welfare,
and War their fair share of the public burdens.
During the war, under the impulses of patriotism
the men of the great body of the people, without
regard to their own comparative want of wealth
thronged to our armies, and filled our fleets of
war, and held themselves ready to oner their
lives for the public good. Now, in their tum,
the property and income of the country should
War their just proportion hf the burden of tax
ation, while m our impost system, through means
of which increased vitality is incideutally impart
ed to all the industrial interests of the nation, the
duties should be so adjusted as to fall most
heavily on articles of luxury, leaving the neces
saries of life as free from taxation as the abso
lute wants of the government, economically ad
ministered, will justify.
No favored class should demand freedom from
assessment, and the taxes should be so distribu
ted as not to fall unduly, on the pooiybut rather
on the accumulated wdthof the country. We
should look at the national debt just as it is not
as a national blessing, but as a heavy burden on
the industry of the country, to be discharged
without unnecessary delay.
It is estimated by the secretary of the treasury
that the expenditures for the fiscal year ending
the 30tli of June, 1866, will exceed the receipts
$112,194,947. It is gratifying, however, to state
that it is also estimate I that the revenue for the
year ending the 30th of June, 1867, will exceed
the expenditures in the sum of $111,682,818.
This amount, or so much as may be deemed suf
ficient for the purpose, may be applied to the re
duction of the public debt, which, on the. 31st
day of October, 1865, was $2,741,854,750. , .
Every reduction will diminish the total amount
of interest to be paid, and so enlarge the means
of still further reductions, until the whole shall
be liquidated ; and this as will be seen by the es
timates of the secretary of the treasury, may be
accomplished by annual payments even within a
period not exceeding thirty years. I have faith
that we shall do all this within a reasonable
time ; that, as we have amazed the world by the
suppression of a civil war which was thought to
be beyond the control of any government, so we
shall equally show the superiority of our institu
tions by the prpmpt and faithful discharge of our
national obligations.
THE DEPARTMENT OF AGRICULTURE.
The department of agriculture, under its pre
sent direction, is accomplishing much in devel
oping and utilizing the vast agricultural capaci
ties of the country, and for information respect
ing the details of its management reference is
made to the annual report of the commissioner.
OUR RELATIONS WITH FOREIGK POWERS.
I have dwelt thus fnlly onour domestic affairs
because of their transcendent importance. Un
der any circumstances, our great exteDt of ter
ritory and variety of climate, producing almost
everything that is necessary to the wants and
even the comforts of man, make us singularly
independent of the varying policy ot toreigu
powers, and protect us against every temptation
to '" entangling alliances," while at the present
moment the re-establishment of harmony, and
the strength that comes from harmony, Will be
our best security against "nations who feel
power and forget right."
For myself, it has been and it will be my con
stant aim to promote peace and amity with all
foreign nations and powers; and I have every
leason to believe that they aH, without excep
tion, are animated by the same disjosition. Uur
relations with the Eni)eror of China, so recent
in their origin, are most friendly. Our commerce
with his dominions is receiving new developments;
and it is very pleasing to find the government of
that great empire manifest satisfaction with our
policy, and reposes just confidence in the fairness
wjnch marks our intercourse.
The unbroken harmony between the United
States and the Emperor or Russia is receiving a
new support from an enterprise designed to
carry telegraphic lines across the continent of
Asia, through his dominions, and so to connect
us with all Europe by a new channel of inter
Our commerce with South America is about
to receive encouragement by a direct line of
mail steamships to the rising empire of Brazil.
The distinguished party of men of science who
have recently left our country to make a scien
tigc exploration of the natural history of rivers
and mountain ranges of that region, have re
ceived from the emperor that generous welcome
which was to have been exacted from his con
stant friendship to the United States, and his
well known zeal in promoting v the advancement
of knowledge.
A hope is entertained that our commerce with
the rich and populous countries that border the
Mediterranean sea may be largely increased.
Nothing will be wanting, on the part of this gov
ernment, to extend the protection of our flag
over the enterprise of our fellow-citizens. We
receive from the powers in that region assurances
of good will ; and it is worthy of note that a
special envoy has brought us messages of condol
ence on the death of our late chief magistrate
from the Bey of Tunis, whose rule includes the
old dominions of Carthage, on the Afrfcan
coast.
TnE COURSE OF GREAT BRITAIN.
Our domestic contest, now happily ended, has
left some traces in our relations with at least one
of the great maratime powers. The formal ac
cordance, of belligerent rights to the insurgent
states was unprecedented, and has not been jus
tified by the issue. But in the systems of neu
trality pursued by the powers which made that
concession, there was a marked difference. The
materials of war for the insurgent states were
furbished, in a great measure, from the work
shops of Great Britain ; and British ships, man-
restoration of each one of these functions of the h d t the free(imen ,if thev show patience
general government brings with it a blessing to
the States over which they are extended 1 -Is it
not a sure, promise of harmony and renewtu attachment-to
the Union that, after all that, has
happened, the return of the general government
ing the last fiscal year1 more than one-fourth of j secured by bonds of the United States, we may
is known only as a beneficence 1
inowtvel well .that5 this 1 p
and manly virtues, will sooner obtain a participa
tion in the elective franchise through the states
than through the general government, even if it
had power to intervene.
When the tumult of emotions that have been
raised bv the suddenness of the social change
policy is attended shall have subsided, it mav prove that they will
with, some risk ; that for its success it requires a receive the kindliest usage from some of those on
least the acquiscence- of the States which it con whom they have heretofore most closely de
cerns; that it implies an invitation to' those States, pended.- .--
by renewing their allegiance to the United States, protection to the freedmen.
to resume their functions as States of the Union. put while I have no doubt that now, after the
But it is a risk that must be taken; in the choice close of the war, it is not competent for the gen
bf difficulties, it Is i the smallest' risk'; and to di- eral government to extend the elective franchise
Ininish, arid," if possible, to remove all danger, I m the several states, it-is equally clear that,good
naveieit it mcumDeni on me to assert one other l faith requires the security of the freedmen in
the whole number of acres sold rawotherwise dis-
It is estimated that the receipts derived from
this source are sufficient to cover the expenses
incident to the survey and disposal of the lands
entered under this act, and that payments in cash
to the extent of some forty or fifty per cent, will
be made by settlers, who "may thus at any time
acquire title before the expiration of the period
at which it would otherwise vest. The homestead
policy was established only after a long and ear
nest resistance ; , experience proves its wisdom.
The lands, in the hands of the industrious set
tlers, whose labor creates wealth and contributes
to the public resourcesare worth more to the
United States than if Ley had been reserved as
a solitude for future purchasers.
The lamentable events of the last four years,
and the sacrifices made by the gallant men of our
army and navy, has swelled the records of the
Dension bureau to an unprecedented extent. ' On
require the greatest moderation and prudence,
and the law must be rigidly enforced when its
limits are exceeded.
We may, each one of us, counsel our active
and enterising countrymen to be constantly on
their gaard to liquidate debts contracted m a
paper currency, and, bv conducting business as
nearly as possible on a system of cash payments
or short credits, to hold themselves prepared to
return to the standard of gold and silver. To aid
our fellow citizens in the prudent management of
their monetary affairs, the duty devolves on us
to diminish by law the amount of paper money
now in circulation. Five, years ago the bank
note circulation of the country amounted to not
much more than two hundred millions; now the
circulation, bank and national, exceeds seven
hundred millions.
L The simple Statement of the fact recommends
more strongly than any words of mine could
doifog. necessity of restraining this expansion
ned by British subjects, and prepared for receiv
ing British armaments, sailed from the ports of
Great Britain to make war on American com
merce, under the shelter of a commission frem
the insurgent states.
These hips, having once escaped from British
ports, ever afterwards entered them in every
part of the world, to refit, and so to renew their
depredations. The consequences of J.his conduct
were most disastrous to the states then in rebel
lion, incieasing .their desolation and misery by
the prolongation of our civil contest' It had,
moreover, the effect, to a great extent, to drive
the. American flag from the sea, and to transfer
much of our shipping and our pommerce to the
very power whose subjects batf created the ne
cessity for such a change. '
These events took placeoefore I was called to
the administration of th government. The sin- -cere
desire for peace bwhich I am animated led
me to approtej thejroposal, already made, to
submit the questions which had thus arisen be
tween the countries to arbitration.
These questions are of,,such,mmnpnt, ti .
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