The New York Herald Newspaper, December 28, 1859, Page 2

‘Phe well-known intention of the framers of the con- Mivation. ‘Wh will not be denied that the general “ power %o declare war” is without limitation, and embraces Within ®self not only what writers onahe taw of mations term a public or perfect war, but also an Geperfect war—and, in short, every species of hos aiiy however contined or limited. Without the satbority of Congress the President canuot fire a Bostile gun in any case, except to repel the at- feoka ofan evemy, [t will not be doabted that aader this power Congress could, if they thought proper, esthorize the President to employ the force at his commend to seize a vessel belonging to an American citizen which had been illegally and un- ly eaptnred in a foreign port and restore it to its owner. But Congress only act after the fact— aiter the mischief has been done? Have they no er to confer upon the President the authority advance to furnish instant redress should such @ ssase afterwards occur? Must they wait nntil the mis- chief has been dove, and can they apply the remedy @aly when itis too late? To confer this authority to gueet fature cases under circumstances strictly spe- ‘tified, is ag clearly within the war-declaring power as such an authority conferred upon the Preside: Dy act of Congress after the deed had been doa In the progress of a great nation many exigencies must ayise imperatively requtring that Congress should authorize the President to act promptly on @ertain conditions which may or may not afterwards gvise. Cur history has already presented a number ofsuch cares. I shall refer only to the latest. Under the resolation of June 2, 1858, “for the Béjustnent of difficulties with the republic of Pa- goguay,” the President is “«uthorized to adopt such measures and use such fo as in his judgment wey be necessary and advisable in the event of a refuca] of just satisfactic y¥ the government of Paraguay.” “Justsatisfaction” for what? For “the attack on the United States steamer Water Witch,” and “other matters referred to in the annua) mescoge of the President”? Here the power jeYexpressiy granted, upon the condition that the government of Paroguy shall refuse to render st satisfaction.” In this and other similar eases Congress have conferred upou the President wer in advance to employ the army and navy pon the happening of contingent futurs events; pad this most certainly is embraced within the ‘power to declare war. ROCESSITY OF MORE POWFR IN THE HANDS OF THE PRESIDENT. Row, if this conditional and cqntiagent power emld be constitutionally conferred upon the President in the case of Paraguay, why may it not be conferred for the purpose ef protecting the lives and property of American ‘itizens in the event that they may be violently gad anlawiully attacked in passing over the transit voutes to and from California, or assailed by the weizare of their vessels in a foreign port? To deny Whis power is to render the navy in a great degree ‘weslers fer the protection of the lives and property of American citizena in countries where neither protection nor redress cau be otherwise obtained. THE POST OFFICE APPROPRIATIONS. ‘The Thirty-fifth Congress terminated en the 24 of Mrareh, 1859, without having passed the “ act mak- fg appropriations tor the service of the Post Office Department during the fiscal year ending the 30th ef Juve, 1860.” This act also contained an appro- tion “to supply deficiencies in the reyenue of e Post Office Department for the year ending the 30th of Jane, 1859.” I believe this is the first in- stance since the origin of the federal govern- ‘ment, now more than seventy years ago, when any Congress went out ot existence without having pass ed all the general appropriation bills necessary te ‘arry on the government until the regular périod for the meeting of a new Congress. This event fmposed on the executive a grave responsibility. oo Spee a choice of evils. d this omission of duty occurred at the first mession of the last Congress, the remedy would bave been plain. { might then have in- meantiy recalled them to compiete their work—and this without expense to the government, But on the 4th of March last there were fifteen of the thirty-three States which had not elected avy repre- sentatives to the present Congress. Had Congress been called together immediately, these States would have been virtually disfranchised. If an in- termediate period had deen selected, several of the Btates would have been compelled to hold extra wessions of their Legislatures, at great inconve- Bience and expense, to provide tor elections at an earlier day than that previously fixed by lew. In ‘Wre regular course, ten of these States would not elect until after the beginning of August, and five of these ten not until October and November. On the other hand, when I came to examine @arefully the condition of the Post Office Depart- ‘ment, | did not meet as many or as great difficulties msthad apprehended. Hadthe pill which failed een confined to appropriations for the fiscal year @ading on the 30th June next, there would have heca no reason of pressing importance for the call efan extra session. Nothing would become duc on ith railrow? companie: B: eeyted) for carrying the mail Tor the first quarter of the present fiscal year, commencing on the Ist of Ju- unti! the Ist of December—iess tnan one week be- e the meeting of the present Congress. The veason is that the mail contracters for cois the cur- veut year did not complete their first quarter's ser- viee until the J0th September last; and by the terms of their contracts days more are al- Powed for the settlement of their accounts be- Sere the Department could be called upon for pay- ment. TUE TROUBLES OF TNE MAIL CONTRACTORS. The great difficalty and the great hardship con- aisted in the failure to provide for the payment of fhe deficiency in the fiscal year ending the 30th Sane, 1849. The Department bad entered into ®ertracts, in obedience to existing laws, for the service of that fiscal year, and the contractors were fairly entitled to their jon as it became due. The defici in the bil amounted to 2 fter a carefal settlement of all these punts, it as Been ascertained that it ants to $4,296,009. With the scanty means at his command Bie Postnaster-General has many } that portion of this deficiency w' the first two quarters of the past ‘en the Sist December last. In the mean time the sentractors themselves, under these trying umn stances, have behaved in a manner worthy of all eommendation. They had one rv ce in the midst of their embarrassments, After the amount due to cach of them had been ascertained gad finally settled according to law, this became a specific debt of record against the United States, which enabled them to bor- xow money on this unquestionable secu Stilt they were obliged to pay interestin conseqtience of the default of Congress, and on every prnsiple of justice ought to receive interest from the govern- “ment. This interest should commence from the Wate when a warrant would have issued for the payrment of the principal had an appropriation been made for this purpose. Calculated up to Ist De- eember, it will not exceed $96,660—4 sum not to be taken into account when contrasted with the great difficulties and embarrassments of @ public and private character, both to the people and the Btates, which would have resulted froti convening and holding a special session of Congress. Por these reasens I recommend the passage of a hill, at as early a day as may be practicable, to provide for tlie payment of the amount, with inte- Fest, due to these last mentioned covtractors, as ‘well as to make the necessary appropriations tor the service of the Post Office Department for the enrrent fiscal year. B ‘The failure to pass the Post Office bill necessarily fives birth to serious reflections. Congress, by re ing to pass the general appropriation bills neces- vo carry on the government, may not only dr- ert ite action, but might even destroy its existence. ‘The army, the navy, the judiciary—in short, every department of the government—can no longer per- form their functions if Congress refuse the money necessary for their support. If this failure should teach the country the necessity of clecting a full Con- gress in sufficient time to enable the President to oenvene them in any emergency, even immediately after the old Congress has expired, it will have been productive of great good. a time of sud- den and alarming danger, foreign or domestic, which all nations must expect to encounter in their gress, the very salvation of our institutions may staked upon the assembling of Congress without delay. If, under such circumstances, the Presi- @ent should find himself in the condition in which he was placed at the close of the last Congress, with nearly half the States of the Unipn destitnte of representatives, the consequences might be disas- trons, I, therefore, recommend to Congress to carry into effect the provisions of the constitution ‘on this subject, and le a law appointing some day previous to the 4th of March in each year of odd nomber for the election of representatives throughout all the States. They have already ap- ca a day for the election of electors for Presi- and Vice President, and this measnre has been approved by the country. ¢ r would again express & most decided opinion in favor of the construction of a Pacific railroad, for the reasons stated in my last two annual messages. When I reflect upon what would be the defence- Tees condition of our States and Terttories west of the Rocky Mountains in case of 4 war with a naval power sufficiently strong to interrupt ali intercourse with them by the routes across the Isthmus, [ ‘am still more convinced than ever of the vas. impor- fiance of this railroad. I have never doubted the eonstitational competency of Congress to provide for its construction, but ttiis exclusively under thy ig power. Besides, the constitution ex- , a8 an imperative duty, that “the States shall protect earh of them (the one mr invasion.” Jam ata loss to conceive and Osegon against such a naval"power by any other ameans. | repeat the opinion contained in iy Jast an- mal message, that it wood be inex pedieat ior the go- #0 undertake this great work by agents of | elusive control. NEW YORK HERALD, WEDNESDAY, DECEMBER 28, 1859.—TRIPLE SHERT. its own appointinent and under its direct and ex: This would increase the patron- age of the Executive to a Le ay extent, and would foster a system of jobbing and corruption which no vigilance on the part of federal officials could prevent. The construction of this road ought, therefore, to be entrusted to incorporated compa nies, or other agencies, who would exercise that ac- tive and vigilantsupervision over it which can be in- spired alone by @ sense of corporate and iadividual interest. I venture to assert that the additional cost of transporting troops, munitions of war, and ne- cessary supplies for the army across the vast Inter- vening plaips to our possessions on the Pacific coast would be greater in sucha war than the whole amount required to construct the road. And yet this resort would, after all, be inadequate for their defence and protection. TRE FINANCIAL €ONDITION OF THE COUNTRY. We have yet scarcely recovered from the habits of extravagant expenditure, produced by our over- flowing Treasury, during several years prior to the commencement of my administration, Tae finan- cial reverses which we have since experienced ought to teach us ail to scrutinize our expenditares with the greatest vigilance, aud to reduce them to the lowest possible point. The Exevusive Depart- ments of the Government have devoted them- selves to the accomplishment of this object with considerable success, as will appear from their different reports and cstimates. To these I invite the scrutiny of Congress, for the purpose of reducing them still lower, if this be practicable, consistent with the great public inter- ests of the country. In aid of the policy of re- wenchment { pledge myself to examine closely the bills appropriating lands or money, so that if any of these should inadvertently pass both houses, as just sometimes be the case, I may atfurd them an opportunity for reconsideration. At the same time we ought never to forget that true public economy consists, not in withbelding the means necereary to accomplish important national objects confided to us by the constitution, but in taking care that the money appropriated for these pur- poses shall be faithfully and frugally expended. ADDITIONAL REVENUE REQUIRED, It will appear from the report of the Secretary of the Treasury that it is extremely doubtful, to say the least, whether we shall be able to pass through the present and the next fiscal year without pro- viding additional revenue. This can only be accom- plished by strictly confining the appropriations within the estimates of the different departments without making an allowance for any addi- tional expenditares which Congress may think proper, in their discretion, to autho- rize, and without providing for the redemp- tion of any portion of the 00 of Treasary notes which have been already |. do the event of a deficiency, which I consider proba: ble, this onght never to be supplied by a resort to udditional loans, It would be a rninous practice in the days of peace and prosperity to go on increasing the national debt to meet the ordinary expenses of the government. This policy would cripple our re- sources and impair our credit in case the existence ot war should reuder it necessary to borrow money. Should such a deficieuey oceur ast ap- prehend, I would recommend that the ne- cessary revenue be raised by an increase of our present duties on imports. I need not repeat the opinions expressed in my last annual message as to the best modo and manner of accomplishing this object, and shall now merety observe that these have since undergone nochange. The report of the Secretary of the Treasury will explain in detail the operations of that department of the government. The receipts into the treasuary from all sonrces during the fiscal year ending 30th June, 1859, in- cluding the loun authorized by the act of 14th June, 1508, and the issues of treasury notes anthorized by existing laws, were eighty-oue million six. hun- dred and ninety-two thousand four hundred and seventy-one doliars and ‘one cent (381,692,471 01), which sum, with the balance of six millions three hundred and ninety-eight thousand three hundred and sixteen dollars aud ten cents (£6,395,316 10) re- maining in the treasury at the commencement of that fiscal year, made an aggregate for the service of the year of cighty-eight million ninety thousand seven hundred and eighty-seven dollars and eleven cents ($88,090,787 11). he public expenditures during the fiscal year ending 30th June, 1859, amounted to eicuty-three million seven hundred and fifty-one thousand five lundred and eleven dollars and fifty-seven cents ($83,751,511 57). Of this sam seventeen million four hundred snd five thousand two hundred and eighty4ive doilars and forty-four centa ($17,405,285 44) Were applied to the payment of interest onthe public debt and the redemption of the is- snes of treasury notes. The expenditares for all other branches of the public service during that fiscal year were therefore sixty-six million three hundred and forty-six thousand two hundred and OSC dollars and thirteen cents (256,546,226 3. ‘The balance remaining in the treasury on the ist July, 1849, being the commencement of the present fiscal year, was four million three hundred and thirty nine thoueand two hundred and seventy-tive dollars aud fifty-four centa ($4,339,275 54.) RECEIPTS INTO THE TREASURY. The receipts into the treasury during the first ae of the present fiscal year, commencing duly 1, 1859, were twenty million six hundred and eighteen thousand cight handred and sixty-five dollars and eighty-five centa, ($20,618,865 $5.) Of is amount three million eight hundred and twea -one thonsand three hundred dollars (35,821,300) was received on account of the loan and the issue of treasury notes—the amount of sixteen million seven hundred and ninety-seven thousand five hun- dred and sixty-five dollars and eighty-live cents ($16,797,505 85) having been received during the quarter from she ordinary sources of puolic reve- une. The estimated receipts for the remaining three-quartera of the oat fiscal year to 30th June, 1860, are fifty 1illion four hundred and twenty-six thousand four hundred dollars, ($50,426,400). Of this amount it is esti that five million seven hundred and fifty-s' sand four hundred dollars ($5,756,400) will be re- ccived for treasury notes which may be reissaed under the fifth section of the act of Jd March last, and one million one hundred and seventy thousand dollars ($1,170,000) on account of the loan autho- rized by the act of June 1M, 1%6S—muking six million “nine hundred and twenty-six thousand four hundred dollars ($6,926,100) from these extraordinary sources, and forty-three million five bondred thonsand dollars ($43,500,000) from the ordinary sources of the public revenne—making an cpregate, with the balance in the treasury on the ist Joly, 1859, of seventy-five million three hundred and eighty-four thousand five hundred and forty-one dollars and eighty-nine cents ($75,384,541 89) for the eatianaten means of the present ficcul year, ending 30th June, 1860. EXPENDITURES OF THE GOVERNMENT. The expenditures daring the first quarter of the present fiscal year were twenty millions seven thou- sand one hundred and seventy-four dollars and seventy-six cents, ($20,007,174 76.) Four million six hundred and sixty-four thousand three hundred and sixty: dollars and seventy-six cents ($4,664,- 366 76) of this sum were applied to the payment of interest on the public debt and the redemption of the issues of Treasury notes, and the remainder, being fifteen million three hundred and forty-two thousand eight hundred and eight dollars ($15,342,- £05), were applied to ordinary expenditores during the qnarter. The estimated expenditures during the remaining three quarters, to June 30, 1860, are forty million nine hundred and ninety-five thou- sand five hunéred and fifty-eizht dollars and twenty three cents ($40,995,568 23). Of which sum two million eight hundred and eighty-six thousand six bundred aud twenty-one dollars and thirty- four cents ($2,456,621 34) are estimated for the i terest on the public debt. The ascertained and es- timated expenditures for the fiscal year ending 30th June, 1860, on account of the publicdebt, are, ac- cordingly, seven million, five hundred and fifty tiousaaie: nine hundred and eighty-eight dollars and ten cents, ($7,5/ 8 10); and = for the ordinary expenditures of the govern- ment fifty-three million, four handred and fifty-one thonsand, seven hundred and _ forty- four dollars and eighty-nine cents, ($53,451,744 89,) making an aggregate of sixty-one million two thou- sand seven hundred and thirty-two dollars and ninety-nine cents, ($61,002,732 99); leaving anesti- mated balance in the treasnry on the 30vh June, 1860, of fourteen million three hundred and eixhty- one thonsand eight bundred and eight dollars and forty cents, ($14,381,808 40.) ‘The estimated receipts during the next fiscal year ending 30th June, 1861, are sixty-six million two hundred and twenty-five thousand dollars, ($66,225 ,000,) which, with the balance, estimated a3 before stated, as remaining in the Treasnry on the 30th June, 1860, will make an aggregate for the service of the next fiscal year of eighty million six hundred and ix thousand eight hundred aud eight dollars and forty cents ($30,606 803 40.) ‘The estimated expenditures during the next fis- cal year ending June, 1861, are sixty-six mil- lion’ seyen hundred and fourteen thousand nine hundred and twenty-eight dollars and seventy- pine ceuts (66,714,928 79.) Of this amount, three million three hundred and eighty-six thousand six hundred and twenty-one dollars and thirty-four cents ($3,396,621 34) will be required to pay the in- terest on the public debt; leaviog the sum of sixty- three milion three hundred and twenty-eight thou- sand three hundred and seven dollars aud fovty- nary expenditures during the fiscal year ending Goth June, 1861, Upon these estimates a balance protection can be afforded to California | | ) ‘ ; Iain in the treasury on the let Jaly, Wil be left in te Troasury on the 30th Jone, 186), of Svirtecn million eight hundred and nine: thouind eight hundred and seventy-nine dollars and sixty-one centa ($15,891,579 61). But this balance, as well 25 that estimate to re. will be Teuuved by supp appropriativns ag aba) be sale by law to carry into effect certain Indian treaties during,the present fiecal saked for by the Secr of the Interior, to the amount of five hundred and thirty-nine thousand three hundred and fifty dollars, ($639.350,) and upon the eatimates of the Postmaster General for the service of his department the last fiscal year, ending 30th June, 1859, amount ing to four nillions two hundred and ninety-six thousand and nine dollars, ($4,296,009,) together with the further estimate of that officer for the ser- vice of the present fiscal year, e 30tn June, 1860, eing oxe million tive hundred and twenty six thourand three hundred and twenty-four dollars, ($5,626,324,) making an aggregate ‘of ten million three hundred and sixty-one thogsand «ix hundred and eighty-three dollars, ($10,361 683. Should these appropriations be made as request- ed by the proper departments, the balaace 19 the treasury on the 30th June, 1861, will not, it is esti- mated, exceed three million fiva hundred avd thir- ty thousand one hundred and ninety-aix dollars and ty-one cents, ($3,530,196 6.) CONDITION OF THE DEPARTMENTS. Ttranamit herewith the of the Secreta- ries of War, of the Navy, of the Interior, avd of the Postmaster General. “They each contain ve!ui- ble information and important recommendations well worthy of"the serious consideration of Con- gress. It will appear from the report of the Secretary of War that the army expenditures have been materi ally reduced by a'system of rigid economy, which, in his opinion, vifers every guarantee thatthe re- duction will be permanent ‘The estimates of the Department for the next year have been red nearly two millious of dollars below the estimates or the present fiscal year, and half a million of dol- ars below the amount granted for this year at the last session of Congress. The expenditures of the Post Office Department during the past fiscal year, ending on the JUth June, 1859, exclusive of payments for mail service specially provided for by Congress out of the geveral treasury, amounted to $14,961,105 4 and its receipts to $7,163,484 07; showing a de- ficiency to be supplied from the treasury of $6,996,009 26, against $5,235,677 16 for the year ending 30th June, 1858. The increased cost of transportation growing out of the expansion of the service reyuiek, by Congress explains this rapid augmentation of the expenditure. It is gratifying, however, to observe an tncrease of receipts for the year ending on the J0th June, 1859, equal to $481,691 21, compared with those in the year end- ing on 20th June, 1858. It is estimated that the deficiency for the current fiscal year will be $5,985,424 04, bat that for the year endivg 30th June, 1861, it will not ed $1,542,473 90, should Congress adopt the measures: of reform proposed and urged by the Postinaster General. Since the month of March retrenchments have been made in the expenditures amounting to $1,826,471 annually, which, however, did not take ef fect until after the commencement of the present fiscal year. The period seems to have arrived for de- termining the question whether this Departraent shall become a permanent and ever-increasing charge upon the Treasury, or shall be peraiitted to resume the self-sustaining policy which had so Jong controlled its administration. The coarse of legislation recommended by the Postmaster Gene- ral for the relief of the Department from its pre- sent embarrassments, and for restoring it to its ori- ginal independen is deserving of your early and earnest consiceration, . in conclusion, 1 would again commend to the just liberality of Congress the local interests of the District of Columbia. Surely the city bearing the nome of Washington, and ‘destined, { trust, for ages to be the capital of our avited, free and pros- perous confederacy, has etrong clans on our favor- able regard. JAMES BUCHANAN. Wasurncron Crry, Dee. 19, 1859. THE BALANCESHEET OF THE NATION Annual Beport of the Seeretary of the Trea sury on the State of the Finances. Tanaseey Derarraet, Dec. 5, 1859, Si—ln compliance with the act of Congress entitled “An act supplementary to an act to eetablish the Treasury: Department,” approved May 10, 1800, I have the honor to submit the following roport:— Un the let day of July, 1858, being the com- mencement of the fiscal year, 1559, the ba- Jance in the treasury was .. $6,398,316 10 The receipts into the treasury during the fis- cal year 1859 were as follows:— Yor the quarter ending September 30, 185S:—~ From customs. $15,444,520 28 From prbite land: 21,171 84 From miscellaneous sour 7 Ot From treasury notes 200 00 m loan authorized by act of June 14, 185 + 19,090,000 00 ——— =~ 25,250,379 46 For the quarter ending Decomber 31, 1858:— From customs,.... 9,054,228 60 From public iand: From miscellaneou From treasury notes. 10,884,619 81 For the quarter ending March Frem customs, $i From pudtic fan From wiscetianeo From treasury notes. From kan authorized by act of June 14, 1858... For the quarter ending June From cus' . From publie land From miscellaneous sot From treasury notes. From Joan authorized by act of June 14, 1858 $5,000 00 3,101,452 19 r 188,090,787 11 ? gregute means, therefore, for the ¢ of the fiseal year ending June 30, t ending J For ihe quarter ending Sept. Wor the quarter ending For the quarter ending Mai For the quarter ending June Which amount was applied to the variou he public eervice as toliows:— Gil, u intercourse, and mi . $83,751,501 87 13 branches of peilane- 28,035,820 94 8. Servieo of 23, 14,712,610 21 17,405,285 44 - $3,751,611 57 Total... As exhibited Deduetine the ex year 1862 from the aggregate meals during the yeer, a balance remained in the trea- in statemicnt No. 1, res during tho fiscal Bory oD Juiy $4,339,275 54 From the Ist being the first qua t year 1860, the receipts into the treasury as folows:— From customs $15,947,670 62 From pubilic lands, 870,244 62 From miscellaneous soure 879,650 62 From treasury notes. 3,811,300 00 Frotn loan authorized by'act of June 14, 1858...66..cseree04 210,000 00 20,618,865 85 The estimated receipts during the three re. maining quarters of dhe current figcal year are ag follows: From onstoms From treas From loan aotborized y June 14, W858...6 060s even 60,425,400 00 Making the aggregate of necertained and es- tunated means for the current fiscal ycar, ending J 30, 1860... ae 15,084,641 39 ‘The expenditures for the first quarter of the current figcal year, 1860, that onding Sept, 30, 1869, were— For ‘civil, foreign intercourge and miscel- WANCOUP +6. sereresecereeeereres $4,748,180 89 For eeryice of Interior Department (Indinns Nh 1,739,176 11 8,479,060 10 064,208 76 . . «820,007,174 78 res from’ appropria- 8 heretofore made by law, during the ibree remaining quarters of the current fiecal year to June 99, 1860, aro estimated at. : ‘i ++ 40,005,658 23 Meking the expenditures for the current fiseal year under existing authority........... $61,002,782 90 For service of Navy Department. For public debt TOD. 0s ceccee cevcerccensceccscesses Dedueting this aggregate expenditure from tho aggregate of the before estimated means for the current fiecal year 1860, will eave an estimated balance in the treasory on the 20th June, 1860, of. . . «314,381 ,808 40 Estimates for the fiscal bag Ah ad fuly 1, 1860, to June 30, Palance in the treasury July 1, 1860, ax above stated... ....606 deo'se $14,381,808 40 ésiimated receipia from custome trom July +, 1860, to June 50, 180}... 40.5 seeseeeeee 60,000,009 00 Kenmated receipts irom public lands from dusy 1, 1860, o June 50, 1861,.... 4,000,000 00 Teumated receipts. from miiceliancous sources from July 1, 1860, to Jane 30, 1861 2,225,000 00 five cents ($68,328,307 45) for the estizmated ordi- | -one | Apyregate receipts ... $30,606,808 40 p: + 98,173,682 43 a 112,262,462 75 a 46,278,893 56 from the agcreate estimated receipts nto the durmg tho fiscal year from July 1, 1460, W June 0, 1961, ag above stated, the estimated balance will remain in ‘the treasury on the 30th June, 1661, of. ..$18,801,879 61 The failure of Cengrees at its last session to pass the bill for the service of the Post Office Department renders necessary appropriations for that department which must be paid during the prosept fizca) year. As these amounts are not contained in the precedwg statement, it will be necessary to consider them, in order to arrive at the true condition of the treasury at the close of the present and next fiscal years. It will be seen from the communication of the Postmas- ter General, aecompanying my re) on the estimates, that there will be asia io vars deficieney fa that Aeperttuens for the fiscal year ending the 40th of June, 1869, the sum of $4,296,009; and to supply the deficiency for the present fiscal year ending the 30th of June, 1860, the further gum of 35,626,924. In addition to these amounts, the Sceretary of she Luterior aubmita an estimate for the sum of $659,350, which he will require daring tho preeent fiscal year to carry out certain Indian treaties approve the last seasion of Congress, — These sums, $10,561,083, must be met during the present fiscal year, and must, therefore, be deducted from the esti- mated balance in the treasury on the 0th of June, 1860, which will leave in the treasury at that time an estimated balance of $4,020,125 40, and an estimated balance on the Both of June, 1861, of $3,580,196 G1. This last amount Will be Increased to the extent of the unexpended appro- priations fer the next fiscal year which may remain in the treasury undrawn oa the 30th of June, 186. Jk will be geen that there wil! be ne aecessity to provide additional means for the treasury, provided the receipts should be equal to the estimates, and the appropriations made by Congress do not exceed the amounts estimated for by the department. Teubmit, wiih much confidence, the estimate of proba. dle receipts during the present and uext fiscal years, It is based upon the operations of our trade and commerce for the Jast twelve months, and upon the conyiotion Wat the business of the country will coutiaue in its present state of comparative prosperity. At last session” ef Congress I submitted an estimate of the probable recespta into the treasury for the then three remaining quarters of tho fiscal year ending the Sin of June, 1859. The result has appreximated the estimate with unprecedented accuracy—the actual receipts being $38,579,391, while the estimate Was $38,500,000—and as tue present esumates aro: based upon siwilar data, it sbould greatly strengthen the confidence to be put in their correctness. Some apprehension bas becn felt that the large amount of imports during the last twelve months would be at- tended with unhappy results in the business of the coun- try. This apprehension would be well founded if the Jacts showed that the imports exceeded the wants of the country and ita ability to pay for them. The imports during the last fiscal year (as will be seen by reference to table 7) were $488,768,180, whilst the exports for the game period were $956,789,462, showing an excess of ox- ports over imports of $18,121,332. As large a3 the im- ports for the last fiscal year were, they haye gone into copsumption. Table 47 exbibits the amount of goods in warebouse at New York, on the first of November, for a series of year. It will be seen that the amount on hand on the first of November last does not exceed the amount in previous years, when the country was highiy prosper- ove and its business steady and regular. These figures do not exbibit an uphealuby state of trade ana business. One fact, however, connected with our exports has attracted much attention, and led many to believe that we were im. porting beyond our ability w pay: T allude to the increase of specie in our export tables. If specie occupied in the businese of the country only the position of # circulating medium, and the supply was limited accordingly, there would be just ground for this apprehension; such, how- ever, if not the case. Jt constitutes an important element in the list of our productions; and, like all other produc- one, where the quantity exceeds the legitimate demands of the country for use and congumption, it becomes a very proper article for export. It is estimated that since 1848 Californix has roduced over vo hundred millions of — gold. ould her condition buve beon improved by retaining that amount of specie within hor ftmits, to the exclusion of those articles required for the use of ber citizens, and im exchange for which this #pecio has been Bent to the Atautic and abroad? During the same period Georgia nas produced more than five milion bags of cot- tox." The same policy which would require Calfornin to rotain her gold, beyond the legitimate wants of her peo- ple, would with equal propriety require Georgia to retain within her limits the excess of the production of cotton over the wants of her people, The argument is a8 appli- cable to all the States as ¥) one, aud have used the iilus- trations of single States only ‘because they were more marked and stinking. Unless the export of specie goes to the extent of violating this manifest principle, it oonsti- tutes no just ground of alarm or anxiety. In this connec- amounting to tion ft shiould be observed that th large excess of specie | exports commences with the discovery of the California myues, and has increased very much in pro- pervon to their increased production, as will be sera by reference to table 8, which exhibits for a serves of years the amount of’ our export of specie. The exact amount of the production of the California mines during this period is not known, but it is believed that it exceeus very largely the amount which has been general- ly stated. We have no reliabie mode of ascertaining it; but, from the best information I have beon able to obtain, I should estimate the amount for the last year at not less than seventy millions of dotiars. Whenever the export of specie shall exceed proper limite, the effect will soon be seen and feit in the flaancial and commercial operations of the country. It would pro- bably be firet extubited in the specie basis of the banks, showing an increased proportion of circulation and depo- sits to the amount of specie in their vaults, aud this would goon be followed by derangement and depression in the gexcral trade and business of the country. At present there ts no evidence that either of these results are to be apprehended. By reference to table 0 it will be seen that he specie basis of the banks (when the tables for 1859 wero prepared), as compared with their circulation gad deposits, ‘8 more favorabJe than in 1850, the year proceding the nercase of specie exports. It is probable that some change hag occurred since the last bank reports; of that we have Bo reliable juformation; but it is not believed that t will materially vary the general proposition. It {a ap- propriate here to remark, that in view of the large and courtant increase of the production of the precious inetals, he covntry shonid look to the policy of snbstituting #pecie to a great extent for the present paper circulation. ‘The process sbould be gradual, and whilst it would not dersnge the businees of the country, would operate as a wholefome check upon banking and overtrading. The adoption of an independent treasury syetem by the seve- ral States, as recommended in a former report, would go far towards the accomp!ishment of this desirabie result. ‘There is no mode of ertaining the amount of specie in general circulation, All eetimates on that point are purely speculative. During & prosperous condition of the country it no doubt increases with the demands of business; and whenever from any cause the supply is below the wants of the country, it will be manifested by a depression tn trade aud general embarrassment. Until these indications appear, we may safely calculate that ther has been the usual and necessary increase, are necessarily overtrading with those countries to which cur specie is cartied, and a8 the most of it goes to the ports of Great Britain, oa conclude that we are there- tore buying too largely’ of British productions. ‘The fact that payments are made in England must not be conei- deretl as conclusive evidence that the debt fas been con- tracted in the course of our trade with that country. By reference to table 10 it will be seen that our imports for year ending June 30, 1869, from the Kast and West 8, and other countries named in the tabie, exceed parts to thoge countries to the full extent of the ex cess of our export of specie. It will algo be obaerved that eles which we import from those countries are of nesessity, and generally such as are not in our own country. ‘These articles must be had, and if we cannot furnish in exchange for them any other of our productions, (hey must be paid for in specie; and it is not material whether the epecie for that purpose is sent to London or to the foreign port of exportation. this branch of trade consumes the excess of soecie exporta, it would leave our commercial operations with all other countries upon « safe basis, even in the estimation of those | who indulge $0 many apprehensions’ on account of our heavy exports of specie. Itehould be observed, in tais tion, that our exports to Great Britain for the tast year exceed our import? about fifty millions, the cent, at extent, being applied to the payment of tl edemands of the countries to which Ihave just re- ferred. These views are eubmitted to the consideration of Con- gress in support of the opinion that we may look with confidence to a continued increase in the business of the country. The natural tendency in times of prosperity is to extravagance and overtrading, and This feding shoud rot bo etimalated. Af ine duiged, it will in the fatare, ag it has done in the past, lead to revulsions and embarrassments; but there is no eeriovs danger to be apprehended if the in- creased business of the country continves to bear a proper proportion to those natural eauses which produce and sustain jt. Entertaining these views, I do not dowbt that the actual receipts inw the treasury for ths present and next fiscal will be fully equal to the estimates. The only re- ‘stion in conneetion with the estimates to be considered is the probabie demands upon the treasury uring this period. If the appropriations made at the present session do pot exceed th amount eontained in the ‘estimates, it is believed tbat they can be met with the or- dinary and extraordinary receipts alrendy provided for by Jaw. The estimated balance that will bo in the treasury on the 20th June, 1861, is only $3,680,190 61, and leaves no margin for additional appropriations. if, therefore, the appropriations should exeved the estimates, or Con: gress should determine to provide within thia pe- riod for the payment of any portion of tho pub- lic debt, it will become necessary to make vision for such contingencies. ‘The idea of increasing the public debt to mest the ordinary expenses of the government should not be entertained for a moment. If additional demands are created upon the treasury by the legislation of the present Congress, provision must be made to meet them by such iuerease of tari{l duties as may be required for that purpose. In such an event I would respectfully refer Congress to my last Ob fee 88 containing the views of the department on the subject. A critical examination of the estimates for the noxt fecal year, submitted to Congress, will exhibit cousidera- ‘bie reduction from former estimates, The remark is ap- plicable to every department whoro any diecretion can be exereied over the expenditure. Ih movt cases the amounts are fixed by law, and can neither be incronsed nor diminished by the head of the department. 1 have endenvored to enforce the strictest economy in the vari- ous branches of the Treseury Departrownt. tingle branch for collecting the revenue the ex- pense bas been materially reduced by Reed and carrying out, where the power cxisted, the reforms re- commended in the bill for reorganizing the collection dig- trict of the United States, &e., submitted by tho depart. h tent to the Inst Congress. With farther reductions XC is contemplated to make, T have felt warranted in re: 4 ng the estimate for the expouse of eolleetiug the rave. for the next fisea) year five hundred thousand dollars, pabtage of the bill to which Ihave referred would tly aid the department in this work of reform, ne public debton the Ist July, 2868, ae stated in my last ‘Al report, wat $25,155,977 06. Tho act of Juno 14, 1858, authorized an additional foan of $20,000,000, which hus been accordingiy negotiated. Of this $18,420,000 had deen pant into the Treasury, and the stock tseued therefor on the Jet of July, 1859, the commencement of the present tscal year, A portion of the remainder has been since paid, and the stock thercfor issued, Thy balance wih some persons the idea seems to prevail that we | doubtless be soon completed, which will make the perma. nent public debt $45,166,077 06. Gt the lemvorary public debt authorized by the acto December 28,1857, providing for the issue of $20,000,00 in aston, tiers are coinuatiee ‘on the Lat July 1868, wo by my last report, $19,764,800. On th ‘86th June, 1869, the olose of the last fiscal year, th ‘Amount of theee notes outstanding was $16,046,800. Th details of the various descriptions of the public debt o the S0th Juno, 1859, are shown by the statemen marked 3, In the estimated means of the Treasury for ths presen’: and next fiscal years, it will be seep shat no provision it made for the permaneat redemption of any portion of thy twenty millions of Treasury notes, The authority for re fesuing these notes will expire on the 30th June next, aad it wiil, therefore, be neceseary for Congress to extand the Jaw for that purpose for another period. ‘On the 2Qlat of January last, I submitted to the Bouse of Representatives, in answer to resoluuons that body, @ report in reference to tuo ex- rt and importtrade of the United States with Great tain and France. ‘The investigation which I was re- uited to make for that purpose Brouglt to my attention ¢ variant systems adopted by ditfereat countries of ob- taining and keeping commercial statistics, These syaterns are 80 various that I found it impracticable to institute ‘py comparison of the facts exhubiled in the tables of the different governments, which could be regarded as accurate and reliable. Every commercial man will pro Rovnce auch a atate of things an evil of great mugaitude, ae iene which demands & prompt remedy, if it can be found, To avoid a recapitulation of the views presented in that report, and for the purpose of bringing the subject to the attention of the present Congress, I append to this report a copy of that commonication (marked 11), and would ask for ib a consideration at this time. 1 do not know a greater benefit that could be conferred upon the commercial interest of the country, at so smali an expense, than the adoption by the leading commercial goverumente of the world of & aniform sysiem of com- mercial statievics—a uniform unit and ‘currency, wad uni- form weights aud measures. Upon one branch of the subject, Valuable suggestions will be found im the accom- panying report of the Director of the Mint. The impor- tance of the subject cannot be over estimated, and it is hoped that it will receive the careful consideration of Congress at its present seszion. ‘1 must again call the attention of Congress to the provi- sions of the act of March 8, 1857, om tho subject of depo- sits by disbursing agente, and repeat the recommenda tions heretofore made for its moditeation. In my former reports I have presented the reasons for some change of that act so fully that I deem it unvecessary to do more at this time than to refer to those reports, and, for the reasons therein stated, again to request the action of Congress on the subject. ‘The attention of Congress is particularly called to tho accompanying report trom the engiueer in chargo of the Bureau of Construction, It gives a@ fuil and detailed ac ‘count of the operations of that burean, charged with tho construction of the various public buildings under the direc- tion of this department. ‘The principal buildings now in process of construction are the treasury extension, in this city, and the custom houres at Charleston and New Or- leans. These builairgs were commenced under the di. rection of Congress before Icame into office. Each of them was planned op an expensive scale, and large amounts had been expended in their erection before my connection with this department. For this neither my predecessors uor myself are responsible, Our duty in the pretwises has been simply executive, Under these circumstances I submitted, at the last session of Congress, estimates for continuing the work upon them duriog the present zeal year. Having been commenced, I deomed it sound policy and true ecouomy to prosecute the works wiih energy to their compiction, The estimates submit. ted at thé last session were mado under that convic- tion. Congress took a different view of the subject, and reduced the estimates to a point which seemed to look merely to the duty of preserving the untinished works from injury, and Suspending, for tho present, at least, their completion. In aceordance with the policy thus indicated, I directed the operation on all these Duildings to be brought within the means at the disposal of the department; and when those meaus were exhausted to stop the work. The report of the engineer in charge will show that these directions bave been thus far com- plied with. The balances of former appropriations will Boon be exbausted, when all further operations wiil be suspended. In accordance with the poly $0 clearly indi- eated by the action of the last Congress, have only esti mated for a suflicent sum to keep them from injury for the next fiscal year. If Congress should adopt a different policy at the present session, and determine to continue operations ou these works, I would respectfully rofer to the report of the engineer in charge for esti- mates of the amounts that will be required during the next fiscal year. I wonid again invite the attention of Congress} to the subjest of marine hospitals. The facts submitted, as well in the last as in the present report of the engineer in charge of the Bureau of Construction, demand an investigation of the subject by Congress. ‘The views which I have heretofore presented are strength- ened by each year’s exporience, and I would again press them upon the consideration of Congress, Turce new hospitals bave been completed, and are ready to be put in operation. Before it is done, the necessity and propriety of the ne § should be cansidered in the light of the facts presented in the reports to which Tiave referred. Tae refusal of tho last Congress to authorize any additional ‘buildings of this character would indicate a concurrence with the views of the department on the subject. It only Temains to be determined what dispesition should be made of those which have already been erec.ed. Imreference to other public buildings authorized by preBous acts of Congress, and heretofore suspended for the ‘want of means, steps bave been taken to secure the selec- tion of proper sites. Plans and specifications are being prepared with a view of commensiug their erection when itean be done with a due regard to the condition of the treasury. The policy of the last Congress, in suspending the work upon those already in process of construction, would indicate that new ones should not be commenced until provision is made for the completion of those already begun. The condition of the Louisville and Portland canal is so anomalous a8 to require tbe action of Congress, Under the amended charter of the State of Kentucky of Januar: 21, 1842, the stock previously belonging t individaa’ has been redeemed from the esrn! of the |, except thut a single ebare each is held by certain persons to qualify them to act as directors of the corporation. Tho act of the State of Kentucky of February 22, 1844, pro- vides that when the United Slates shall become the sole owner of the canal the jurisdiction of the State over it sbail be yielded to the United States. The amount advanced from the treasury for the con- struction of this canal was $233,500, and the amount of dividends paid ipto the treasury up to 1842 is $255,182 48, fo that in fact the whole cost of the stock held by the United States had been reimbursed previous t the amend- ed charter. Since that charter, and the redemption of the stock of individuals under its provisions, the earnings ofthe canal have been applied to its improvement by the directors, and whenever the amount has exceeded that requirement, it is understood the tolls have been reduced. No revenue has beeu received from it since that period, and none is contemplated. ky the United States are sub Under the laws of substantially owners of this canal, but no authority has deen given to supersede the corporation in its manage- men, no action having been hud by Congress on this sub- ject Since the amended charter by Kentucky. Under ‘these circumstances 1 would refer the whole Subject to Congress for such action as ey may deem proper. ‘The annual report of the Director of the Mint is bore- with transmitted (marked 12), as also the reports of the various Bureaus of the Treasury Department (marked from Atol). They contain much interesting informa- tion in convection with their respective branches of the publicteervieo. ‘The Teport of the Superinvtent of the Coast Survey will be laid before Congress at an carly day. HOWELL CUBB, Secretary of the Treasury. OUR ARMY. Annual Report of the Sceretary of War for the Year 1859. Wan DevarrMenr, Dec. 1, 1859, Sm—The asthorized strength of the army icf 18,165 men, all told. On the firstof July, the date of the last complete returne, the actual number reached 17,493. Of this number there are s more than about 12,000 men available for active service in the fled. This little forco bas been engaged, with its usual activity and efficiency, since the date of my last report, in the discharge of its arduous and multitarious duties, being required to man abont 130 permanont garrisons, posts and camps, scattered over an area of three millioas of equare miles. Under these circumstances it has been obviously impossible to give that ample and perfect pro- tection to our whole frontier witich our citizens bave o right to expect, and which it is the duty of government to afford. Indian dopredations have been committed on our Southern and Mexican border, which as yet have been unchastised for the want of men. Ihopo to make such an alteration in the disposition of the troops next season a8 will prevent any repetition of these outrages in future on that frontier, It has been truly said that to callours a peace estad- lishment isa merefibuse of torms. All the incidents per- taining to.an active wir establishment characterize our tervice throughout the year, excepting only the casualties upon the battle fleld; and these, in our service, are far from being few or insignificant. Tho sudden calls to which our troops are constantly reliable, the length of marches to be made, the amount of real ond severe tutigno, privation and hardship to be endured by therm, are not exceeded in any service, nor at all équalied «Dp any peace establishment whatever. The cheer!utness, lacrity, and efficiency with which they have performed vbeir duties entitle them to tho commendation of the ountry. The positions held by our troops at the date of my Inet report are, in the main, those they still occupy, being the best % seeure the pence of our Territories aa © give protection to our frontiers and the overland routes tothe Pacific. The papers communicated with this re- port will show, somewhat in detail, the movements of she troops and the results of them, ‘The war which, last year, was manches and Kiowas is still ‘un era eee theaire of its extended from the western part of oor Texan boun- dary tothe region }; oe ee ‘the headwaters of the ivers. Arkaneos and an ene Cape eA been taken to subduo those ant give perfect tection to the routes from Missouri and Arkausis to New ico. ection with the subject of frontier de- ween entre to submit a plan which, if Congress, will, 1am confident, be produc- ultimate good to the country and an essentin Ibis to allow by law the enlist for the mounted corps, whose term of seruic : wo for the of six months, beginning i: May, These men be required to furnish horses, for which a Hberal per diem com; oug nt to be allowed them, but no remuneration for loss or dompage ualoes the commanding officer shouk! certify that killed or rendered: wjary in battle, These siz mouths recruits should eens h06e One: hall of the mounted regiments, and, if necessar, that number of the present force” should . Yanded to muke 100m for them. ¢F'vitom would gusly enter ae ae « om would giadly enter the service fe Ome, but would never think of enlisting pane wen 7 five years. it is no objection to months would be too & short diseiplined troops of these men, Thoy de ehillul riders aud dexterous in the ase of fire arms— seldierly accomplishments which it take years to. inadequately, to Inany of eur mounted men. As tho) would go at once into the fleid, they would need little be- doud a knowledge Of routine necessary iu camp life, for ‘hey would be aircady fitted for spy or scout duty, 80 «ssentiayim Indian warfare. Tp actual battle with the Indians, kuccess i8 more owing to individual prowess, «killin arms and borsemanebip, than to discipline. After a few years, this system would supply the fron- tiors witha very large numbers Of settlers sufficiently in- structed apo disciplined to give them confidence and getf- volianee, whose persooal ‘knowledge of ube country and the hauuts of the savages would render themfuily capable of either detence or attack. In pomt of economy, great mvaptages would averue to the country. It would save all expense for the forage of balf We vember of horsoa de. Jopgivg tothe mounted service; it would save tho jay, clouhing, subsistence, fucl, and quarters of tho aame num. ber of of men for haif the year, and during the most ex. pensive part of (t, the winter; and whilst giving a fresh supply ot good horees every year, would cost the govern- ment nothing for them, To proveat any tatscarriage of ihe plan, it migbt be introduced gradually in sueh man- her a8 not to impair the efllcieney of tne service or to en danger the eecurity of the frontiers, ‘The Texan and New Mexican people would, beyond doubt, gladly embrace such an opportunity to enter the service, thai whom no better troops fur suck service could be iound, This system would save considerable sms in the hire of spies and guides, nearly all of whom are now taken from this class of men, STAZY DYPARTMEN'TS AND CORPS, Tagain bring to your notice, und urge upon your spe- cial attention, the recommeudation which Lbive here! fore mate on the subject of the staff corps. Longer experi- ence MH Vibces Me More and more of the beueticial effects to the military service which would resalt from the adop- Hon of these recommendations A bill “for the better or- ganization of the general etait and of the evgiveer aud ordpance departments’? was reported from the Oommittee on Military Affairs at the last gession of Congres, which embodied’the main principles of my snggeatious and re- commendations, With some motitications of its details, tending to promote economy by » rection of additional oflicers therein provided, that bil, if enactoa into a law, would bring about suitably the end iu view. The general efivct of its provisions will be to throw open the du- ties to the whole army, to bring the staff and line officers into more srequcnt and intimate connexion, and to provid for returning to thoir regitients such officers ax may bo found to haye no aptitude for staff duties Now, uader the existing organization, such officers holding a eommis- gion, but in one branch of the service, capnet he traps- ferred, however much the interest of the service or their own tastes or witbes may reuder such transfer desirable, By the proposed organization, there will be a few perima- bent officers iu each of the staif departments and corps, who, by their loog experience in the special daties per taining to each, will be well qualified to take genera) charge of, and give general directions to its business, leaving the execution of the detajis tothe officers of the Tue. These otfivers will acquire thereby a knowledge of aod a familiarity with staff duties, which will be ef incal- culable benetif in time of war; when large armies are to be organized and kept inj the Held. ‘The proposed arrange- ment will effect, moreover, the very desirable end of making every officer, on first joming the army, servo for utiwe ina regiment, and thug become practically ac- quvainted with soldiers’ duties and the actual wants of troops in service befure he can become eligible to appoint- ment in any of the staff departments or corps. No officar will be appoited permnanently to any of them (aithough the competition for such appointmenta will be equaily op 22 tofal)) until he shall have shown up aptitude and ta- lent for its special duties; thus adding a prac- tical standard of fitness to the present theore- weal one of class standing during pupilage at the Mi- litary Academy. Such 4 ditfusion of the knowledge of tho duties of the’ staf? departments and corps among the whole army, instead of conilving it, as at present, wo a few oilicers, will be of great benefit to the military service of the country. 1 venture again to call your attention to the urgent ne- cessity for an additional inspector general. Our territory is too large for the duties of inspection to be performed by the present officers, and the dutivs are far Wo important to be neglected, <. RETIRED List. There is another measure for it of the army, which was recommended by my predeces- sor. Ifully concur in it, and recommended it In my an- nual reports. This is a provision for retiring disabled and infirm officers, bilis for etlecting tis object, identical im language, were reported from the re- spective military committees of both houres of Congress at e- last session, Tao provisions of these bills meet my entire concurrence. Toey ecoure to every officer a fair and open examination of bis case, With the privilege of adductug testimony w bo put on record and submitted to the examination of the Preai- dent, who must concur in ita eufiiciency to establish dis- ability for active service before the officer can be retired. Their enactment will benefit the pabtic service, and at the fame time make a fair provision for officers who may have been worn out in service, whilst i wil) carcfully guard the nights of ail who muy be uil-cted by its opera tion, and exclude the influence of favor. 8m or p «judice. The many objections which have been urged against a simi ar measure for the naval service, and which are duo not to the meaeure itself, but to the manner in which it ‘Was effected, are entirely obviated by the proposed mode of applying ‘the reliring system to tho army. T again Dring tis Subject to special notice, and repeat my former recommendations in its favor. ENUSTED TEAMSTERS. ‘The importance of a regularly entisted corps of team- sters bas been ce long and so often brought to the notice of Congrers that nothing buta deep conviction of its almost absolute necessity induces me to refer to it again. For the ‘want of that authority which cniistment alone will give, most serious delays have often occurred in starting im: portant trains for the uge of the army; and the exigencies of the service, caused by bad faith’ in performing en- gegemenis, have been seized upon by teamsters to exact exorbitant woges from the government, Ifa law was possed authorizing the enlistment of competent and relia- bie men for this special duties, whose term of enlistment should run for one year, all the trouble, inconvenience, and heavy expense, now #0 frequently incurred, would be wholly avoided. There cannot possibly be any well founded objection to this plan, but, on the contrary, every consideration recommends it, most particularly as it would be attended with a large saving to the country in cash each year. The necessity for this mousure beconies moro ur- Rent os our operations are more remoyed beyond the borders of our settlements. i ‘CAMELS, The experiments thus far made—and they are pretty fali—demonetrate that camels constitute a most useful and economical meuns of transportation for men aud supplies through the great deserts and barren regions of our inte- rier. A camel will go eafely with its burdea over ground 80 rough and precipitous that a mule will scarcely pass over it unladen without assistance. They require no forage but what they gather in the most sterile and bar- ren parts of our continent, and for many days together Jive conveniently without water. An abundant supply of these animals would, beyond all doubt, enable our army to give greater and prompter protection to our frontier, and to all our interoceanic routes, than three times their cost expended in auy other way. A8 @ measure of economy and efflcioncy. I.cannot too strongly recommend the purchase of a fall supply to the favorable consideration of Congress. ‘The report of the surgeon general coataius important suggestions for the good of the service. The increase of the medical staff recommended by him has become i ne- censity, and requires the action of Congress. ‘The coffee retion of the army is fixed by law, and can- not be altered by may regulation. It is manifestly too Small, and ought to be increased. The good of the ser- vice requires that the supply of cotlve for the army should be put on the same footing with all other rations, and loft to the experience of the service to fix the quantity, J herewith transmit a communication from a surgeon of the army upon this subject, whose recommendationz are con- curred in by Brevet Major General Twiggs. ‘The reports of Colonel Delafleld and Major Mordecat of” their observations ou the military systems of Europe were submitted to Congress Jast session. They contain informa- tidn of great vaiue to the army and the country, and de- kerve to be printed without delay. The efflclency of our artillery has at all times been an object of golicitude to those who have considered its im- portance. The arm is one for which both study and ex- perience are particularly necessary. Our military estab- Jishment is 86 small thal every cerps in the aray 13 main jy employed in active service of a general deveription, Bnd all attention by the troops to any special branch of military science has to be made secondary and meidental. I have endeavored to mitigate the evils of this eyatem xe fur as the artillery is concerned by prescribing and creat- ing facilities for an habitual discipline in the Service of that arm. The corpe has been divided into two Clasecg, one to garrison the 190re important pormanent fortiliea- tions, where they can have the mdans of practice in heayy artillery, and the other to occupy posts where troops are required, as op the Indian fronuer. | Eaeh of the litter bas alight company and battery, which are designed. to be the meang of instruction to other companics in that branch of the eervice. A system of theoretical and practical instruction has been prescribed for every artillery post, and by a periodical exchange of companies between the fortifications and field artiiery posis, each company will have an opportunity of sastrug ion and experience ia alf branches of the arm, aod ut the same time share the harazhips of actual service. Tue proportions in which the two classes should be arranged and tbe selection of stations are questions vo be determin ed according to the exigencies of the service, and ning’ vary from time to time. . The companios, ¢. ng those: which are mounted, progerve the iefaatey armament amit Givoipline as heretoore, aud ure Uadic to duty in that cy pacity whenever required, MAITARY s1GNA18, Assistant Surgeon Albert J. Myer, of the medical corpe of the army, having submitiet to this desartmout gyetem of military eignalsfor the purposs of comm cating intelligence or orders botwoon distant pointe « laud, 4 board was convened ja March last io ox amine into its merits, The board reported (avor.vty ur ‘the adoption of this plan for the uses of the urmy. A Ge- nes of experiments with the field signals, iasatated ander special tnetructions from thie department, haye devclonod reenults which promige to be of vaine to the servies, With an equipment simple, strong, weighing but sixteen pounds, aud 80 compact ae to be rapidly carried from place to hae by w soldier motinted or on foot, which requirce for 1s use but a einglo man, communication has been knpt ti(» and mossages transinitied by day and at night a distance Rel Nos miles, shits Maegeaarty been sent five milo without any apparatus especially provided for the For the distances at which communication by aaaale would be needed for milttary uses, the plan proposed ap- pears to ready and reliablé. Tho trials in progress give reason to believe that by the use of such si there may be secured to the kervice a mode of commun cation more easy, safe, and available than apy hitherto known, The advantages t acerue wan army troma practicable system of telegraphing do not require comment. MILITARY ACADEMY, ‘The benefits which the army and country are datly do riving from the Military Academy rendor it snnecoasary Sr mo to commend it to the cheerful enpgort of Gengrons. reasing the efficiency