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‘ THE NEW YORK - HERALD. WHOLE NO. 7400. MORNING EDITION—WEDNESDAY, DECEMBER 3, 1856. PRICE TWO CENTS. STATE OF THE UNION. MESSAGE OF THE PRESIDENT. {Interesting Debate in the Senate and ‘ House on the Message. Abstracts of the Annuul Reports of the Secre- taries of the Navy and War and Postmaster General, ‘The Condition of the Indians in the United «tates OUR NATIONAL DOMAIN: Abstract of the General Land Office Report. THE PENSIONERS OF THE COUNTRY. THE PRESIDENT'S MESSAGE. FuLow Couzess ov THs Senate anp House or RergesgstAtivEs:— ‘The constitution requires that the President shall, from time to time, not only recommend to the consideration of ¢ Congress such moasures as ho may jndge neseesary and expedient, but also that he shail give information to them of the state of the Union, To <o this fully involves expo. sition of al) matters in the actual condition of che country —domestic or foreigna—whicd cssentiaily coucorn the ge- neral weliare. While performing ms consstutional duty ‘m this respect, the Prorideat does not speak morely to xpress personal convictions, but as the ex cutive ininis- fer of the government, enabled by bis position, and called ‘upon by his official obligations, to scaa wi. an impartial ‘eye the interests of the whole, and of every part of the United Btates. Of the condition of the domestic interests of thy Unioa, | Mw agriculture, mines, manufactures, navigation, and Commerce, itis necessary only to say thatthe isteraal | prosperity of the country, its continuous and etea ‘vancement in weaith and popuiation and ia private wellas public well being, attost the wisdom of ovr instt- @ations, and the predominant spirit of iateiligeaso and patriotism, which, notwithstanding cosssioual irreguiart ‘as of opinion or action revuiting from p»yular treedom, bas distinguished and characterized the psople of Ame- toa. In the Drie! interval botweor the termination of the tast ‘end the commencement of the present scssiva of Goa- @rers, the public mind has beea occupi'd with the care of seleoting, for another coust!tutional term, the Preei- dent and Vice President of the Uvited “tates ‘he determination of the persons, who are of right, or contingently, to preside over the adininisiration of the q@overnment, is, under our sysiem, committed to the ‘States and the people. We appeal to tnem, by their voice Pronounced in the forms of law, to call whom:oever they evil to the bigh post of Chief Magistrate And thus it is that az tho Seaators represent the re- wptctive States of tho Union, and tho members of the House of ©-- ---m‘stivos Wb seyeral constituencies of a pled . seenacnta nn ead State, 50 the President roprotonts tae mew. -g--~ qulation of the United States. Their election of hint is ‘the explicit and solemn act of the soie sovereign authority sof we Cuoa. * It te tmpesstble to misspprebend the eroat principles, ' which, by thelr recent political actioa, the peopie of the ‘United States, have sanctioned and announced. They bave asserted the cons:ituiional equality of eact ‘and all of ‘he States of the Uaiun as St.tos; taney have af roligion, wherever their birth or their residence; nave maintained the ipviolanliity of toe ooaritational rights of the different sections o the Usien; and they their dovoted aud une torabie sitaca mont to the Uvion and t= the constiution, as objacts o ‘mtereat supérior to al) subject» 0’ local or eectiona! com troversy, as the sa’tguard of the right of all, aa tho brn ‘the eseence of the liberty, peace and grontness the republic. Ia doing this, thoy Lave, at the same time, empbati- cally condemned the ides of orgeviziog ia those United States mere coographical parte; of marshalling in hoa- tile array towards each other the dilereat parts of the country, North or South, Eart or Woet Schemes of this natore, fraugut with incalculable mis- chief. and ebich the aie Bense of the people bus |, covld bave bad countenance in no part of the opeey, had they not been disguised oy suggestions plaveil le App erence, aciing \pon en excited atate of the public mind, ind by causes temporary in their oharacter, and itis to be boped traasiens ia their lalla ence. w f Perfect liberty of association for political objesi#, and the widest ecope of discussion, are the received aod or dinary conditions of goverament in our country Oar o boty goon hee spewed? wo apoeoh, Or avy other mothods fhe coratiution. and tho Xistonoe of the ol thie great liberty, and pro- by the laws and usages of the governmont they as- nai}, sracciatic ns have been formed in some of tho States of Andividvals who, pretending to sovk only to pre- vent. the spread of the tnatituwon of slavery into nt or fatare iueboate States of the Union, are really inflamed with desire to change the domertic tations of ex! ') accom Peto depreciating the government organizstioa waian “atanda in ther way, and of caiumniating, with indisert- yenigate juvective,, not only the citizens of particular with whose Inws they find feat, var all others of . ahelr fellow citizens throughout the codutry who do not 7 with thon in their aaeaulie upoa the cmstita- framed and adopted by our fathors, and claiming od and the ae tt bas pport aod grateful roversace of ecek fn onject whioh tacy wall i 2 F. | if 2 - 25 fares i He ‘ ; i i : i | i £ i Aj monarchies of Earope Ata. Well knowing that such. and euch only, are Means and consequences o/ their plans and purposes, ‘endeavor to prepare the people of the Uarted sates war D; everything in their power to de- arid the laws of morai aathority, fabric of the Unton by is 10 ‘and sectional (am area 4 an nega | = with reciprocal hatred, y otucatiog them to aS face as enemies, rather than shoulder to by the agency of such anwarrantadle imtorferencs, ‘and domestic, that the minds ef many. otherwise ‘Citizens, have been #0 ini) vmod into the parsiooate condemnation of the d: tic inati¢atigae of the Svathera to pass ingorsibly to almost equatty toward their fellow citizens of thowe to fall into temporary ges 2 Es 3 i with Ardenily atizched to livorty in t do not to consider practieally id attain can be accomptished, nor to 4, they have no remedy to apply. ‘that it can be only Sgeravated by thelr victecos aud unoonstit 1tlonal action. A quention, watch is one of most aifllcalt of a jleme of social instivution, peliiical economy an Atatermanehip, they treat with unrearoning intemvoranoo Of thought avd language. Extremes beget extremes. Vio- attack from the Korte God weir ate juense the growth of a spirit of angry doflance at the South if ne evonts wo had reached that con yotos of the poopie haa now a» the attempt of a portion of ths Organization and movement, to ‘ornmont of the United States, that the grest body of those who are tached ie of tholr progress having ry issues, each of which be oonfined within constitutional aad peace. bat which attempted indirectly what few mon to do directly, tnat i, toact aggressively | i i | i i 3 i i i q nullify the thea existing act extradition of ze png a apy ied wi aystem of ‘monious ¢0-operation the suiborities of the United States and of the several States, for the maintenance <f their common institutions, which existed in the early years of the reoablic, wae do- atroyed; conflicts of jurlédiction came to be frequent; aad Congress found tteeli competied, for the support of the corsuituticn, ond the vindication of iw power, to autho. rize the — of new officers charged with tno excoution of its ects, as if they and the officers of the States were the mipisters, respectively, of foreign gov- erpmen(s in 4 state Of mutual Dosillity, rather than tol- low magttravs of @ common country, peacotully sub- nisting under the ion Of one well constituted Union, ‘Thus here, aiso, aggression was followod by ro action; and the attacks upon the constitution at this eS did but serve to raise up new barriers for its de- ee wnd security. The third stage of thie unhappy sectional controversy ‘wea in Copneciion with the organization of territorial go- veroments, and the admission of now States iuto the Union, When it was pro to admit the State of Maino, by separation of territory from that of Maseacha rette, and the Stste of Missouri, formed of « portion of the territory ceded by Franca to the United tates, represen tatives in Congress objected to the atroisaion of the la:ter, univers with cor ditions sui ed to particular views of pablic polly. ‘The impostion of such a condition was success. felly resisted, But, at tho same periot, ihe question was prevented Of imporing restrictions upon the rosidue of the territory ceded by France That question was, for the time, dispoged of by the adoption of a geographical Ine of Imitation. In this copneesion it should not be forgotten that Franca, of her own accord, resolved, for considerauons of the most far righted sagacity, 10 cede Louisiana to the Uni-et States, and tbat accertion was accepted by the Waited , the latter expressly engaged that “ the inbabitants ‘of the ceded territory shall be facorporaved in the Union of the United Stetes, and admitted as soon as possiole, according to the principles of the federal constitution, to the enjoyment of aii the rights, advantages and iamani tes of citizens of the United States; and in tho meantime they shali be maintatnee and protected im the froo enjoy. rept of their liberty, property. and the religion which they profess ’—that is to say, while it remains in a terrt- torial condition, Its inbaditants are maintained and pio- tected in the free enjoyment of their liberty wad pro- perty, with a right then to pass into tho condition of States on @ footing of pertect equality with the original ates, The enactmeat, which established the restrictive geographical tine, was acquiesced im rather than ap proved by the States of the Union It stood on the statute book, however, for a pumber of years; and people of the reepertive States acquiesced in the re-enactment of the priveiple as applied to the State of Texas; aad it was Ppropored 1 ecqulesce in its further heation to the ter. ritory acquired by the United States from Mexico, Bat this proporition was successtully resisted by the rv pre- sentatives from the Northern States, who, disss of the statute lire, insisted upon applying restriction to the new terrivory gencrally, whethor lying north or south: Of tt, thereby repealing it as a legisiative compromise, and, on the part of the North, pers: ventiy violating the compact, if compant there was. Thereupon this enactment ceased to have binding vir- tue in sense, whether as respects the North or the South; and so in effect it was treated on the occasion of tbe admission of the Stato of Callforn'n, and the organiza- = of the Territories of New Mexico, Utah and Washing- Such was the estate of thie question when the time ar- rived for the organization of the Territories of Kamas and Nebraska. In tbe of constitutioaal iaqairy and reilection, it bed now at length coms to be seen clearly that Covgress does not possess constitutional power to impore restrictions of thts character upon any present or future State of the Umon. In a long serio of decisions, op the fultest eo nd after the mst deliberate gon sideration, the Bupreme Cogrt.of the Halted siat-~ ~~ finally determined thie bh ime enon every form uader which the question =), «vill, in . Arie, Ww a8 aifocting public or questions of the public domala, of rell- gion, of navigstion, ofservitude, * ‘The several States of the Univa are, fo Sase of Oe Coenen in dementio laraiel '@ powor.. | ing gen law of dommeil ea in ioe ot ; BO more can it In the State of Missouri. ft ‘to do this is = mere uuitity; none. If it remains oa it remains there ouly as @ besoon of ing to the logiala, it ‘be oaly to remove pormirmon or ‘x pronibition, the’ r of action of their citizens. the nominal restriction of this mature, al- ready @ dead letter in inw, wes in terms repeaiod by tus last Congress, im a clause of the act Organizing tho Torrt- Kapeas and Nebraska, that repeel was made tho Of a wide epread and dangerous agitation. that the origtasl enactment being a com- perpetual moral obligation, its repeal constitatod breach of faitn- of reas, while jt remsins unrepesled, more iit constitutionally valid io the judgment Of those public functionaries whore duty ft w to pro- on that point, i undoubte tly binding on tne con of each good citizen of the republic. But iu what can it be asserted that the enactment ia question ‘wae invested with perpetuity and enti Jed to the rospsct 8 ON fh pact opinions or sentiments of tif 1s had moral authority consciences, to whom did this authority at tack? Not to those of tbe North, who had*repeatediy re fused to confirm it by extension, aod who bad zesously Striven to eetabdlieh other Incompatible regulations: ject. And ff, ax it thus appears, tho supposed compact bad no obligatory jorce as to ths North, of course iteould not have bad ary ne to wl for all such compacts must bo mutual and of reciproes igation Tt has not unfrequently happened that niet ohne with upd ne estimation of the value of the jaw thoy give, or in ine view of imparting to it peculiar strength, make it perpet- Cannot tovs bind the conscience, will of those who may svcceed 1, vested with similar responsibilities, and clothed with equal authoriiy. More camfai Logg on may prove the law to be unsound in principle, EF. 4 And then both reasun aad ri not merely to justity, but to require ite repeal, The constitution, tupreme aa it \s over all the depart. mente of the government, legisiative, executive and jedictal, ia open to amencment dy ite very terms; aad Congress or Ue States may, in thotr discretion, propose Amendment to it, solemn compact though it m truth ts between the sovertign States of the Union. In the pre went instance, & political enactment, which had ceased to ing the eame popular designation sud qui lity as compro. mire acte; bay, more, who unequivocally disregarded And condemned the most poritive and obligatory tojunc Mons of the conatitution iteelf, and sought, by every ‘Means within their reach, io deprive a portion of their fellow citia ne of the equal enjoy mont of those rights and privileges guaranteed alike wo ali by whe tal compact ot our Ucion. This a/gument against the repeal of the statute line In question, wes accompanied by another of congoulal cha- raoter, and equally wish the former cestitate of founda truth. It was imputed that tne mea euré im the conception of exten fing the mis Of siave abor beyond those pr: viously as#igaed to It, aed that such was ite oaturai as well as iDtended effec; aad these baseless eesumptionn wero made tn the Northora ‘States the ground of unceasing assaait upon constit. onal r repeal in terms of astatute. which was already ob nolete, and also Bali for unconstitutionality, could have no Wwiverce to obstruct or 10 ibe the act organi. the ‘erriories of Kansas and Neor ka was passed, the inherent effect upon that portioa of the pubiie domain thus opened to legal setiioment, wae ‘(0 soit settiors from aii the States of the Union aike, each with bis convictions of pobdlic polley and yg He ER here to found in their discretio uch as ro ag Congress might ry new Mier to bo ‘admitted into. tha ven, Union ehet cloned against them: it id of competition already opened, All the repeal did was to roliew }Oaable enectment, unooastitationa jarious in torma to a large portion of im law. book of an obj in toe Congress do but in the policy of stern coercion; if it venture to try the experiment of leaving mou to judge for themeelros what instimtions will best guit thom; ts it be not airained up to Perpetual logisiative exertion on this polut, if Congres Proceed Haus bo aot ia ihe yory spirit of Lverty, it ia wt once charged with aiming to extend slave labor into al! the new Territories of the United States. Of course these imputations on the intentions of Con- im this respect, conceived as they were in preja- ‘and disseminated in passion, aro utterly destitute of apy ifloation in the nature of and contrary to all fundamental doctriaes and priacipies of otvil Uber ‘and gelt-government. While, therefore, in goneral, the people of the North- crn wales bave never, at any time, arrogated for tn0 federal goverament the power wo tnverfere directly with the domestic condition of persona in tho Southern States, but on the contrary bave disavowed all such intentions, ‘apd bave sbruok from conspicuous affiliation with those few who pursue thetr fanatical objects avowsdly through ‘the contemplated means of revolutionary change of the government, and with acceptance of tne necessary oon- sequepcer—a civil aod servile war—yet many citizens have suffered themselves to be drawn into one evanes- cent politica! issue of egitation afver aastner, appertaiaing to the same ret of opinions, and which subsided as rapidity ‘as they arose when it came to be seen, as it uniformiy did, tnt they were incompatible with tbe compacts of the constituiion mud the existence of tho Union. Thus when the acts of some of thy ‘Stwres to nullify the extradition Jaw imposed upou Congress the duty of passing a new ‘one. the country was invited by "agitaiors to enter into party orgapizatien for 18 repeal; but that agitation apee- dily ‘ceaned by reason of the impracticability of 1t8 ob- Jeet. So when the statute restriction upon the institu. Uons of new States, by « geographical line, bad been re- pealed, the country was urged to demand its restoradon, and that project, also, died almoat with its birth. Then followed the cry of alarm from the North against im- puted Southern encroachments, which cry sprang in reality from the spirit of revolutionary attack on tne do- mestic institutions of the South, and, after a troubied ex- istence of a few montbs, has been rebaked by the voice ©} a patriotic penpie. Of thi last agitation, one lamentable feature was, that it was carfied on at the immediate expenso of the peaca and happiness of the people of the Territory of Kansas. ‘Tat was made the battetiold, not so much of opposing factions or interests witbia itself, as of the conflicting pas- 8'ons of the whole penple of the United States. Revolu- tlovary disorder in Kaneas had tts origin in projects of totervention, deliberately arranged by certain members of that Congrees which enacted the law tor the organizs- tion of the Territory. And when propagandist coloniza tion of Kansas haa thus been undertaken in one sestion of the Union, for the syetematis promotion of its pesaliar views of policy, there ensued, as a matter of course, a counter ection with opposite views, ia other sectious of the Union. In consequence of these and other incidents, many acta of cisorder, it 18 uodemiable, have been perpetrated in Kapeas, to1be occasional interruption, rather taan tl permarent euspension, of regular government. Aggros- tive and most repreensidie incursions into the Territory wore undertaken, both in the Norio and the South, and ervered it on its northern border by the way of low weil as on the eastern by way of Missouri; and there existed within ita state of insurrection against the con. stituted authorities, not without counteaance from incon- siderate poreopa in each of the great sections of the Union. But the difficulties in that Territory have beon extravagantly exaggerated for purposes of political egitation elsewhere. Tne number and gravity «{ the acts of violence have been: maguited partly by siate- ments eniirely vatrue, and partly by reiterated accounts of the same rumors or facts. Thus tho Territory ass been seemingly flied with extreme violence, when the whole amount of such acts bas not been greater than what occasionally passes before us in single cities to the regret of all gt citizens, but @ithout being regarded as of general or permanent political consequence. bay say irreguiarities in the elections had in Kan. sas, ke occasional irregularities of the same descrip- tion in the States, were beyond the sphere of ection of the Executive. But incidents of actual vio lence or of organized obstruction of law, pertina- ciously renewed from time to time, have been moet as they occurred, by such means as wore availadle and as the circumstances required; and nothing of this 3o4> rapue, under cover of tea cxated Fo bave been arreated or dispersed. And oie ete, pars Nts in ceperous industry. in to eu! pr " prorecuticn of ‘Thich be undertook to parucipate sew bd the Territory. it me unming peacetnl a eopcciaily com ‘the means 10 whioh it was iccestary to bave re- ployment of a part of the military =, "ioe wicrymal of that pod from ae at} jefe nd country against foreign foes or pe = ae the Hoar, to employ it for the wappregsion of domertic ineurrection, ts, the exigency cocurs, of imperative pecersity it bay been done the enlts, and 7. taiisfaction in the attain of Fat Unt rng oa who wed ear of tha ‘on ‘that, energy pre sent Excovtive of Kansas, and the firmness and vigilance of the military officers om duty there, tran- quillity has been restored without one of blood bav- ing been shed in ite accomplishment by the forces of the United Stator, ‘The rettoralion of comperative tranq in that Ter- i ritory furnishes the means of observing calmly, and ap- ing at their just value, the events which buve oc. ie discustions of which the govora. prec! curred there, and “boa. grees legislated upon the subject in such terms as wero most eonsor ant with the principle of popular sovereignty which underlies cur government. It could not have leg- Vien, which waa inherent in the nature of things. (slated other wise Goirg violence to another great principle of our inatitutions, the imprescriptible right of equality of the several States. ‘We perceive. also, that sectional interests and party Passions bave been the great impediment to the salutary operation of the orgenlo principlos adopted, and the chiel cause Of the successive disturbances in Kansas, Tho aa: sumption that, because in the organization of the Torrito. ries of Nobrasi Kansas, Congross abstained from imporing restraints upon them to whieh certain other Territories bad been subject, therefore disorders occurred ja the latter Territory, is be or apa nen | by the ‘act that pone bave occarred in former, Those dworders were not the consequence, tn Kansas, of the freedom of self government couceded to that Territory by Congress, but 0 the unjurt interfereace on the part of perkone not invabitaute of the Territory, Such tnterfer- ence, Wherever it has exhibited iteel!, by acts of insur. Io the misrepresentstions bave the greatest currency, it been assumed that it was the duty of the executive not only to suppress insurrectionary movements in but also to see to the regularity of local parts of the United States where, by reavon of inflamed state of the public mind, false rumors = needs littic argument 10 show that the President has no such power. Ali government inthe United States reste sabstantialiy upon popular election. Tne freedom of ciertions is iisbic to be impaired by the intrustoa of un- lawful votes, or the exclusion of lawfel ones, by impro- per infinences, by violence or by fraud, Bat the ot the United States are themsclves tho all-sufficient guardians of their own right, aod to suppose that they ‘will pot remecy, in Cue peason, any suct incidents of civil freedom \a to suppose them to have ceased to be onpa- bie of self goveroment. The Prosideat of the United 3 ‘States bas vot power to mterpose in e! to see to their fPeedom, to canvass thelr votes or to upon thetr legatity in the Territories any more ta the States. If be bad such te? the governmon: might be republican in form, but it would be a monarchy in fact: and if be bad undertaken to axercioo It in the onse of Kansas he wovk! have boon justly subject to the charge of violation of the of veurpation and dearest rights of people of the United states. Unwise laws, equally with | At elections, im periois of gr ta of the freest oad best political trsdtutions. rience demonstratee that in s country lke ovr, where the right of self constitution exists in the Py yd form, the aitempt to remedy unwire legisla tion by resort to rovolutton, is totally out of places lose. Moch as existing logal tnetitations aford more prompt and —— means for the redress of wrong. ; con. whes ‘orde opportanity for rodlection eitbor the Legisiative a of areas, willeee that no act shall re- ‘tons of the * whabiteate the enj1y- Ment, without obstruction or adriigment, of al! oon. atitubonal rights, privileges and immunities of citizens of the United States, a8 contempiated by the organte law of the Territory Foil {nfor mation tn relation to recent events in this Territory will be found tn the documents commantoated herewith from the Dx partments of Siate and War. I refer you tothe report of the Secretary of the Trea sury for particular information concerning the finangial condition of the government, and the various branches of the public service connected with the Treasury Depart- ment. During the last frcal year the receipts from customs Tolafa, and trom. all sourons, weventy ares, tion ani ™m sou ne throes mi nine hundred and eighteen Ca one hunadred and forly.one dollars: which, with the balnnoo on hand up to the Ist of July, 1865, made the tota! resources of the year to amount saoy two miition eight ban- ‘dred and Sfty thourand one undred and sevouteen dollars, The expenditures, {noluding threes milion dollara in execution of the treaty with Moxico, and ex- cluding sums paid on account of the public debt, amounted to sixty millions one hundred and seventy two thouwsena foar bandred and one dollars, auc including the latter, to seventy two milion nine hundred and forty eight thourand seven hundred and olnety two dollar: toe ment on this account having amvunted to twelve mit- on seven hundred aud seventy aix thousand three haa dred and o.nety dotiars, On the 4th of Maroh, 1862, the amount of the pablic debt war sixty nine milion one hundred and twontg-nine thousand nine hundyedand tairy goyog dollars, There was @ subeequent increase of two million seven hundred and titty thousand doliars for the debt of Texas— making @ toa) of seventy one million eight nundred and seventy uiae ‘bousand pine hundred and thirty-seven doliars. Of this sum offorty-tive million tive hundred and tweatv-fve ‘thousand three bundred and nineteen dollars, including premium, has been discharged, reducing the debt to Sart atin coven hundred ‘and thirty soven thousand one byadred and twenty-nine dollars; all of which might be paid within a year without embarrassing toe public rervice, but being not yet due, and only redeemaoie at the option of the holder, cannot be pressed to payment by the goveroment. On examining the expenditures of the last five yoars, it will be seen that the average, deducting payments ou ac- court of the public debt and ten millions paid by tres: to Mexico, has been but sbout forty elght milion dollars. itis believed that, under an economical administration of the government, the average expenditure for she ensuing five years will not exceed tbat sum, uniees extraordinary ooasion for ite increase should occur. The acts granting bounty Jande will coon have been executed, while the ex- tension of our frontier settlements will cause a continued demand jor lands and augmented receipts, probably, from tatrource, These consideraiions wili justify @ reduction of the revenue from customs, 60 aa net ro exceed forty- eight or tifty milion dollars. I think the exig*noy forsucn reduction is impera'ive, aud again urge it upon the con- elderation ot Congress. ‘The amount of reduction, as well as the manoer of ef- fecting it, are questions ct ‘great and general interest; tt being casential to industrial enterprise and the public Prosperity, as well as the dictate of obvious justice, that the buroen of taxation be made to reat as equally a3 pos- sls panes ‘ell classes, and al! sections and interests of the country. 1 bave heretofore recommended to your consideration the revision of the revenue laws, prepared under tne di- rection of the Secretary of the Treasury, and also legisia- Von Upon some epecial questions affecting tne business of \bat department, more especially the enactment of a law to punixn the abstraction of official books or papers from the files of the government, and requiring all such books and papers and all other public property to be turned over by the outgoing officor to his successor, of a law requiring disbursing officers to depo. site ail publi money in the vaults of the troasury or in oiber legal depositories, where the same are convenient ly accessible; aad a law to extend existing penal provi- tions to ali persons who may become possessed of public money, by deposit or otberwise, and who ghall refuse or Begleet, Ob due demand, w pay tho same into tho treasu- ry. 1 imvite your atiention anew 10 each of these objects, ‘Te army during the past year has been #0 constantly employed against hostile Indians in various quarters that itean scarcely be said, wih propriety of ianguage, to Davo been a peace establishment Its dutics have been frausacior!y performed, and wo have reason to expect, es @ reeult of the year’s operations, greater se- curity to the frontier inbabitanis than has been hither- © erjoyed. Extensive combinations among the hortile “Indians of the Territories of Washing- tor and Oregon at one Ume threatened the devastation of the newly: formed settlements of that remote porsion of ihe country, From recent information, we are oermitted to hope that the en: and sucsess(ul operations con- dvoted there will prevent sach combinations in futare, apd seoure to those Terriories an opporiunity to make steacy progress in the developement of their agricultural aod mineral resources. Legislation bas been recommended by me on previous cocasions to cure detects in the existing organization and to increase the efficienoy of the army, and turtuer ooser- vation bas but served to confirm me in the views then expressed, and to enforce on my miod the conviction that such measures are not only proper but nocessary. have, im addition, to invite the atrentin of Congress (en Rerenee eee ne Cotomne: of troops, aud to the necessity of providing a more rapid increase of the mi. tary armament. For details of these and othr subjects relating to the army, I refer to the report ef the Scoreta, ry of War. The condition of the navy is not merely satisfac but eabibits the moet Grautying f of com vigor, Asitis comparatively emali, itis more impor- ‘tant that it should be as complete as pose!ble in all the ol- yeep atrength; that it should be efficient the r of its officers, in the ee a ships, In all these various qualitios the navy 4 made otha ae of sot Fetruary sa 50, voue Eee ‘eGiolen€s of the pavy,”” bas been aivended by tho moat eous readlte, The law for promoting discipline 9 men is found comyenient and salutary. fhe ‘an honorable discharge to faith(ul of the period of their enitst- them to re-culist after a loave of oe <2 eeamen on the ex) ment, Department in favor ofa still further increase naval force. The ofthe Secretary of the Iaterior facts and views in rejation to interna! affairs over which the supervision of his department extends, of much tn- tereet and twportance. The aggregate sales of the public lands, during tho Jast fiscal year, amount to nine mi'lion two hundred and twen- ty eeven thourand eight bundred and seventy eight acres; for which hes been recetved eight mititons eight bun- dred mud twenty one thousand four hundred snd fourteca dollar®. During the same period there have been located with milltery and laod warrants, and for other purpos:#, thirty million ope hor thouss| red and th) ores, thus thirty nine mill three hune tand one hundred ana yee tember last eurveys had eight bundred and seventy ibree and ninety nine acres, ® large proportion ig fF ‘this report in to the compli suggestions in this re regard . cation and sive expansion of the business the different x ot the department; to the sion system; to the colonization of Indian tribes, and ro commendations in rejation to improvements in the District of Columbia, are especially commended to eight doliars; and ite grore rece! dred and twenty thousand eight bum'red and one doilart: making an excess Of expenditure over receipts of two million seven bondred and eighty seven thousand aud forty-six dollars. The deficiency of this depart et is thox reven bundred and forty {our tt oasand dollars great- er than (or the year enai june 36, 1963. OF this dodcien. cy, three bundred and thirty thousand dollars ts to be altriDated to the additional compensation allowed pnet- masters by the act of Congress of 0 28. . Tae ‘wail facilities in every part of the country have been very moch tporrared (n that period, and the large ad tition of railroad service, amounting to seven thousand nine hun drea and eight milo, has added largely to the cost of on. The inconsiderable augmentation of the income of the Poat Oftice Dep ent under the red ced rates of postage, pba) increasing Spay — for the —- make it dependeat to some extent epon phe treasury support. The 1 menrations ofthe voieaserUenerel, in relation to the abolition of the franking “privil and bis views on the establishment of mail steams! lines, deserve the consiceration of T alfo cai the epecial atténticn of ress to the statement of the anni oA pe nb . ica bony Ln \? for the trevaportation 1° Panams Company, spd commend to theit carly and favorable conalders: ten the suggertions cf that officer tn relation to pew con tracts for transportation upon that roate, aad also upon the Tebuattepec aod Nicaragua routes. The Unites cies continve in the enjoyment of amoa- ble relations wih ail foreign powers. monsage was transmitie! to Con- S underrtanaing between the United States and Great ritain. Of the progress apd term|cation of the former question you were informed at the time: acd the other is now Ip the way of ratiafs e¢juatment ‘Tho cbject of the convention between ths United States ond Great Britain of the ifn of April, 1860, war to xe , for the benefit of all sation, the neutrality and the HOD ude Of any transit way, or interooranic com muni- cation, across (he Isthmus of l'anama which might be within the limits of Contral Amorica. praten- sion subsequently aere:ted by Grost Britain, to dominion or control over territories, in or Dear two of the row thowe of Nicaragua aud Bonduras, wore deemed by the 1" ted States, not merely incompatibie with the main object of ihe treaty, but opponed even to ite expremn stipulations. Ocension of controversy on this point hae been removed by an ndditions! treaty, #bich our minister at London hus conciuded, and which will be immediately submitted to the Senate for ite consideration. Should the proposod supplemental ar ont be concurred in by all the parties to be alected by It, the objects contempinted by the original enn vention wil have beon folly attained, ‘The treaty between the United States and Great Bri. ain, of the 6th of Jane, 1964. which wont toto effective oreration in 1865, put an to causes of irritation he tween the two countries by « to the United States Ficus frovrocen, fun advantages etal Wo those enioyed by riean provi w nal on) Uritian subjects, Besides the sis benefits of thie reat? to a large clans of our citizens engaged tp & pursuit con nected 0 inconsiderable — with our na ioval haw favorabie eitect h provinces in America. ‘The exports of domestic articies to those provinces du- rif the last year amounted to moro than twenty two milijgne of dollars, exceeding thore of the precediy g year ly seven millions of doliaye: and the imports Yom, during the fame period, amounted to more than twenty one miitione—an tnerease of sie mijlions upon those of the previone year ‘The tmproved contition of thie branch of ont com merce is Toainly eitributable to the above mentioned treaty Proviston wat made. fp the first article of that treaty, for s commision to designate the mouths of rivera to rich Fhe Gpmangn right of Hehory oy he const of the eee to anotlor | tention to United States and the British Provinces was not to extend. This commission bas been employed a part of two. seasovs, bus without mach progress in accomplishing the object for wick 1t was instituted, ia Consequence Of & Be: rious ciflerence of opinion between the Rot only as to the precise point where the rivers termt pate, but in many imetences as to what coustituies a river. These difficulties, however, may be overcome by resort to the umpirage provided for by the trusty. ‘The eflorta perseveriugly prosecuted since tie com. the Baltic from the exaction of sound does by Douwark, bave pot yet been attooded with success. her xovern- Bets have also eonght to obiain a like reliefto their com- Merce and Deomark waa thus induced to propose an ar Tavgement to all the European powers tnterefted io the subject; and the manner im which her proposition was re- ceives, 'warrantiug ber to believe that a + Btropg appeal to this government for teapora: 810D Of definite action om 4 part, in consideration ¢f whe embarratement which might result to ber European ne- gtlacons by an immediate atjustment of we quesioa ‘with ihe United States. Tain requeet has been acceded to, Upon tbe Couaiticn that the sums Collected atter tne i6tn June iast, aod ontil une 16tb of June next, from vessels and cargoes belongig to our merchants, are to be oun- sidered a6 paid undor protesi and subject to future ad jusiment There is reason to belleve that an arrango- ment betweer Denmark and the maritime powers of Bu- Tope on the subject will be soon concluded, and that the pending Degotiution with the United States may taen be resumed and termipated in a satisfactory manner. With Spain no vew difficulties have arisen, nor has much progress beea mae in the adjustment of pending ones. Negotiations eptered into for the purpose of rolieving our commercial jutercourse with the Isiaad of Cuba of some Of iu burdens, and providing for the more speedy seriemont of local re growing out of that inter- course, bave not j ct attended with any results, Soon’ atter the commencement of the lave war in Europe, this government submitted vo the consideration of all ma: ritime bations two principles for the seourity of neatral commerce ove, that the neutral flag should cover enemies, goode, except articles contraband of war; and the ower, that Leutral property on board merchant vessels of Deitigrrents should be exempt trom condemoation, with the exception of conirabsadsricles, Theee were not pre- sented a3 new rules of tnternations! law, baving been gen Doraily cluined by peutrais, though not always aimitied by belligerents. One o/ the partics tothe war—Russia—as Well as ecveral nectral powers, promptiy accedod to these Propositions; and she two uther prigctpa! beligerents, Great Britain aud France, having consented to observe them for the pretent occasion & favorable opportanity & emed to pe prenented for obtaining a g.neral recogal- tion of them both im Europe and America. But Great Briain aud France, in common with most of tbe States of Svrope, while forbearing to reject, did not effirmatively act upon the overtures of the Untied States. Woaile the quoation waa tp thix p sition, the representa- tives of Ruezia, France, Great Britain, Austria, Pruasi Sardinia and Turkey, assembled at Paris, took !ato conal Geraiion the subject of maritime rights, and pat forth » declaration con'ain'ag the two prineiples whi'b'this gov- eroment had gubmitied, nearly two years before, to the con sloeration of maritime powers, and adding thereto the following propositions: ** Privatecring is and remains abolished,” and Blockades, in order to be binding, Must be eflective, that is to say, maintained by @ force, sufficient really, to prevent access coast of the enemy;’ und tion thus composed of four which bad already been pri by the United States, this government bas beon tavited to accede by all tne wih represented at Paris, except Great Britain and ‘urkey. To the last ot the two additional proporttions— y: ‘that in relation to blockades—$here can corta.nly be no od Jeotion, Ut 8 wArcly the definition of what shall con Blitute the cflectual investment of a blockaded piace, a Celicition for which this govorament has always c ntead- ed, claiming indemnity for losses where & practical viola lion of the ruie tous doilved has been ipjurtous to our com: srticle of the deciaration of of the privateering is me merce. As to the-rerm! conference of Paris, ‘that powers vateering. Proporti tended to imply approval wate property upon Rent belong to the citizens of a belligerent Stave, should be exempted from captare; and bpd gta mom tion been #0 iramec as to give fell effect to the pri would bave received my ready assent benal! of the United States. But the proposed = is inadequate = to ‘that i uit uw Beomed, 2 pen te caaan would bo withdrawn exported, anower w emi tt wa crane ate by @ ntca, ‘while’ tae delensive ability. corners: preeecuting bovitlities poeod d; conterence of Paris, ig mutual in ir effect, 1: would be the relinquishment of ite value to one clean of States, bai read Dems, ‘Verpment, t accede to all the declaration of the Coufereuce of Paris, provided thay ing to the abandonment of privateeriag can be 80 at 60 as to effect the object for which, as te presamed, intended, the immunity of private ocean from hostie capture. To effect this posed toade io the declaration “tha: privateering rains abo: "the follor 3 that the private property of subjects and citizeaos of a beili Rerent on the high sens shall be exempt foom seure by the publie armed. ‘of the other belligerent. except be contraband.” This amendment has been presented not only to the powers which bave asked our aasent to the deciara- fion to abolish privateering but to all other maritime States. Thus far it has not been rejecied by any, and is favorably en tertalved by all which bave made any communication 3s "Eevern ofthe evernments, regs ith favor the Bro, porition of the ave delayed definite action uy th of consulting others, parses, tO iy eitly approved of that modification, and will co-operate in ea deavourtyg to obtain the assent powers; and that ae ‘ole purport have. been received in relation position of the Emperor of the French. ‘ewent aspect of thie important subject allows us to the hope that a principle so humane in tts character, fo suet and in Ma oper atinn, Ao essential to the promperily of comm ere nid so consonent (0 the seatimenits of {his enlightened period of the world, will command the wp Detion of all maritine powers, and thua be ineorpor the code of iuternational Jaw. My views on the subject are more fully set forth in the reply of he Secretary of state, ® copy of which is herewith trans , to the commanica:iona on the audject made to this 20 ent expecitiiy 10 the cormunication of Fraace, ‘Tre government of the United States has at all times re- garded with friend'y interest the other States of Americ erly, like this country. Kuropean colonies, and wow imi t'mempers of the great family of mations. Sut the d condition of some of them, distracted by frequent thas tneapable of regular and firm internal ° eberieh o ach com pimials are most numerous, and alt earnestly urged upon fa atiention, they hare not ceived the cctaideration which this coverntient had ar expect. While reparation for past injuries others tave been added. The political condition of that coun such aa to demand forbearance oa the be try, however part of the United Sistes. If shail continue my efiorts to pro- cure for the wrongs of our citizens that redresa which t= indie Peveabie to the contiaued friendly assoeiation of the two re ub! * The peculiar condition of aifaire in Nloaragua in the darly part Of the present )ear, rendered {t important that this Ecment should bave diplomatic relations with that Mate. Through ie ierrtiory had been one of the principal theronehfares across the Tsthmus compecting North and South whieh our eftizens resorted in umtabers. tn ween the Atlantic and Pacific coasts of the Cnited * to that tate shor 1a'be ey [i wat : ower Wo ha’ e sbou! re me Fitment; aud Reestabster wee Steundingty receteed. Bul he remained here only a short time, Soon, the polit ea) afters of Biearagos underwent unfavorable apt became involved in much uncertainty and confusion, malic Pepresentatives from two Ca a been recestly sert to thia government, bat, with the imperfect in formation pomsemod, It was not poesibe to decide which was the covernmert ’¢ /arto, and.awailting further developements, L have retuwd wo receive eo f the mont aerions nature weetions the United treaty etty olarlons with the United States, and 10 deo by eberier upen ihe Pamama Ralirosd Company, and was Aceordir gy relinquished at that time, it being admitted that our vere + entivied to be exempt from duty in of Pagema and Aspinwall. nt the purpose haa y revives on the part of New Granada, by the ‘a law to snbject vessels visiting her ports to the y centa per ton. and althoagh the iaw has cht to entoree it ie still assert on by the government of the free pe y at any time be 0 of New Granada bas also enacted a law, dur ear. Which levies a tax of more than three dal 1m) of mall matter transported required (0 be paid om the mails ot the United States wold be nearly two millions of dollara apnuaily, in ec dition (0 the large sam payable by contract to the Panama aluoad Company. If the only objection to this exaction were the exorbitaney of ite amount, ft could not be submited to by the United States, ‘The imperition of it, however, woul! obviously contravene our tresty with New Oranads, sod iofringe the eonuract of that republic # ith the Panama “a 'roat “ompany, The law roviding for {his 1x Waa, hy lie | cme, to take effect on the rst of September Inst but the joea: sathoritian om the Tsthimns have been indeed to suspend ite excution, a! to await further instructions om the subject from the government of the i am not yet advised of the detarmination of tha: 1% measure so extraordinary in its c! nnd ¢o clearly contrary to treaty stipulations, and the Tighta of the Panama Ralirosd Company compost mowtly of American citizens, should be persisted in, it will be the duty of the Uniied States to resist ite execution. I regres dingly that occasion exists to invite your at- ‘bject of pill praver Tipe our relate with the Republic of New Gransia. Oa the fifteenth day of Aprit 1ast, & Tiotous sseembiage of inhabitants of Panama committed A viblent and outrageons altsek on the premises of the railroad company, and the passengers and Persons in or ear of reveral ci!trens ate ditiot ir, contract the same, involving the dent of the United Staten. the pilings of mary othere, nd the destruction of & laree amount of y helomging [othe eatiroad company at event fo be made, and the wna fon of jorily tha’ complete ree to the government of Mew Hemanded of that government that the per qnestion be prmiahed ; thet 8 the indemnity for the pro T causes tpl vtiache fo therefore, the wrongs tr nuit be yet Sof the Teton of Panema, fh ao far ag ereong ant Droparty ONeeing Owes I, ion pabslagraikian yess backdyata Vand tv wer pile erty 1 r SEE RG Commissioners, | G that the local authorities cannot be relied on to maintala the public peace of F appr ul peee os ‘Spams and there # just ground for appre between our 4 tlante at | ro mcocment of my administration to relieve our sate to | Mulliludewof our cilizene and # vast amount of cousiantly basking’ <0 the security and protectiow of all wha and the ccntinugnee of the public ad vantages lavoived, itu impossible for the government of the C Btates to be im- different. shee jh this quarter so immnent as tO make i uty (0 station & part of Our uaval force in. the harbors of Pa- bamA éod Aspinwall. in order to protect the persons'and pre- Hertz of the eutizens of the Unived tates, fn those insure to them safe yassage across the [sth would. in my judgment, be unwise to we force now in ports, until, by the spontancour the republic of New Granada, cr otherwise, some atequate srrangement shall have been made for the protection sud ae~ curity ota line of inter oceanic communication so important at this pot to the United stats only, but to all other mame time Stales., both of Europe and america y Meanwhile, negotiat'ous have been instituted by means of special commission, to obua.o irom New Granade Cull indem~ ity for injuries sustained by our citizens oa the ome 4 e gallsfactory security for the general interosia of t 8, In addressing to you my last ennual messege. the to me an aj te one 1 exp enjoy. To point youto the stale ef various departinents of the goverument, and of all the grea’ branches of the public service civil and military, ke order to speek of the inte'ligence and the integrity which vader the whole, would be to indicate but tmperfecUy the ministrative conéition of the country and the benetical ellects of that on the general welfare. Nor would it anflics to say that ie the nation ja actually at peace ai home aad abroad, that ite im dustrial interests are prosperous, that the canvas of iis mart ners whitens every sea; and the plough ef tte busbandicam ie marching sleacily onward to the bloodless conquest of @e coatinent ; that cities and populous States are springyag @py as if by enchantment, from the b¢ reson wilds, and thal the conrageous energy of our people te making of these Unied mates the great republic of the world. These resulls save not been atained without pawse ing tbrovgh tria's and perils, by experience of which, am@ thus only. nations cap harden into manhood Our were trained to the wisdom which conceived, and courage which acbieved independence, by the ciream- slances which surrounded them, and they were thug made capable of the creation of the republic Tt devolved oa the memt federation to cousolidule the wark of the revolution to @e- iver the country entirely from the influences of conflicting trams atiantic partia ities or antipathies, which attacted to our colonel and revolutionary history. and to organize the practical epe- ‘of the constitutional and le titutionsof the Union, of 2 not less noble teak of 1 power of the United States, ‘We bave, at Jengih, r J that rtage of the national career, in which the dangers to be encountered, and the exertions to be made, sre the teidents, not of weakness but of In our foreign relations we have to attemper our power to the less bappy condition of other republics America, aud to piace ourselves in the calmness aad oem- scious dignity of right by the side of the greatest and weal jest of the empires of Kurope. In our domestic relations, we have to guard Againat the shock of the diseonten's the emia fiona, the interest. and the exuberapt, and. therefore, sema- times the na relisn the United States Taball prepare tosurrender the exeeutive trust to my succemmer ‘and retire to private Jife with sevtiments of prof to the grod Providence which, during the period of my admin~ istration, has voucl to carry the conntry meng difficulties, domevtic and foreign, aud to euable me to cealem- pe spectacie of amicab @ and respectiul relations Be- ween ours and all atber governments, and the of corstitutional order and throquil ity throughout the Us FRANKLIN PIEROS. Wasaixeron, Dec. 2, 1866. THE RED MEN OF AMERICA. Anpaal Beport of the Commissioner of Indies Affair DsraRtMuyt OF THe Ls Orrice oF INDIAN A¥PAIRS, Ton a ine Sir—I bave the honor to submit for your consideration the usual annual report from this office, and tor minute details of the operations of the service and the condities of the Indian tnbcs refer you to the various accompany. ing reports and other papers. ‘The improvement in the cendition of the New Yors Indians, though gradua!, is very perceptible. The farma, buildings, crops and stock, and the substantial comferts y progees * ciety of Friends, and the patronage bas also been extended to them. The Ottowas and Chippewas and the Cilppewas of Sagl- see etc cees aedaaie esteem Ee Michigan, continue g: to Wwereass tm saahen, an weil as to advance in tho arts of peso: and under iberal provisions of the treaties of 1855, b; a bomesioad of the department < : t li irl j t I i i i : |: f t iz the teparate homer n ‘The Chippewas of Lako Sapr tons in the northerm peninsula part of Wisconsin, tha the St. Louis river and the Bished witb a liberal supply of aif ses rf if I HY penters’ tools, household furniture and every [i having ® house and residing in been supplied with a good Siove and (he aeual cooking utensils, a table, bereas, o! bedeinad, lagt- tog glasn and many swmallcr articles for household use, The effect of this policy is quite percepivie and salutary, and hes stimviaied many wo erect aud provide lor erecting new houes for, and several other places. Orrtifirates issued to al the ball breeds, who, by the provimions of the recent treaty, are extitled to lan’, whinh, if preseoted at the snd offtess, will verve to secure to each of them the juantity to whit they are entitled. and which they may designate from aby Of the )cbdiie domain vot otherwise appropriated, In addition to thove among the Indians of Miobigae pre ae now maivteined st L’Anos, Bad river, Ponte and Grand Portage, all among toe Chippewas Lake Soperior. The extended area of —— = Michigan Agency renders it impose devote ar much time to the Indians under his c’ a serioun disturbances. i E i ! F i : i i : fi 4 i i us 2 | f i i 5 i ur 4 mint ie