The New York Herald Newspaper, December 7, 1864, Page 1

WHOLE NO. 10,328. THE MESSACE PRESIDENT UNITED STATES, &o., &o., &eo. i Vacrow Cirizens oF tax Senara arp House oF Rereesenrarives:— Again the blessings of health end abundant harvests claim eur profounlest gratitude to Alarighty Goi. The condition of our foreign affairs is reason: @bily satistactery. OUs FCRE'GN RELATIONS, Mexico cortinues te bs a theatre of civil war. ‘While our political velattous with that ceuntry ‘ave undergone no change, we have at the same me strictly maintained neutrality between the Delligerents. At the request ef the States of Costa Rica-and Wicaragua, a competentengincer has been autho- ined to. make a survey of the river San Juan and ‘he port-of San Tuan, ° It is a-source of mech satis- Seetion that the difficulties which for a moment excited some pelitical apprehensions, and cansed a Gecing of the inter-oceanic'transit route, have been @micebdlyadjusted, and ¢hat there is a geod pros- pret that the:ronte will soon be reopened, with an fmerease of capacity.and adaptation, We could wet. exaggerate either the ‘commercial or ‘the political importance. of that great im- rovement. It would be doing injustice ‘@e ‘an ‘important South American State not to eoknowledge the direptness, frankness and cordial- @y with which the United States of Colombia have ‘entered into intimate relations with this gevern- ‘ment. A claims comrention has been constituted ‘We complete the unfinished work of the one which @ened ite session in 186), The'new liberal constitution of Venesuela having @raeinto effect, with the universal acquiescence of the people, the government under it has been re- @egnised, and diplomatic intercourse with it has heen opéned in s cordial and friendly spirit. ‘The long deferred Aves Island claim has been -watisfactorily paid atid: discharged. Matual pay- ments have been made of the claims awarded by ‘@e late joint commission for the settlement of @laims. between the Unitcd States and Pera. 4m carnest and cordial friendship continues. te. exist between the twe countries; and efforts. ae ‘were in my power have 4 tO remove misunderstanding threatened war between Pern and Oar relations are of the most friendly na- hile, the Argentine republic, Bolivar, Pasaguay, San Salvador and Hayti. past year no differences of any kind with any of these republics. And, on hand,.their sympathies with the United are constantly expressed with ocordislity end carnestnese. ‘The claim arising from the seizure of the cargo @f the brig Macedonian in 1821 has been paid in Mi by the government of Chile. Oivil war coutinues in the Spanish part of St. @emingo, apparently without prospect of an early have. erreigir? ins Official correspondence has been freely opened ‘whth Liberia, and it gives usa pleasing view of @eelal and political progress in that republic. It may be expected to derive new vigor from Ameri- ean influence, improved by the rapid disappear- mec of slavery in the United States. I solicit 2004 authority to farnish ¢o the republic a gun- st a moderate cost, to be reimbursed 0 the United States by instalments, Such a ves- el is needed for the safety of that State against the native African races, and in, Liberian hands 4 would. be. more effective arresting the African slave trade than & squadron in our wn hands. The possession of the least @eganized naval ferce would stimulate a generons ambition in the republic, and tha confidence which ‘we should manifest by furnishing it would win for- Dearance and favor towards the colony from all dvilized nations. Our very popular and estimable representative fm Egypt died in April last., An unpicasant alter- @ation which arose between the temporary incum- bent of the office and the governmentof the Pacha Pesulted in a suspension of — intercourse. fhe evil was promptly corrected on he arrival of the successor in the consulate and ear relations with Egypt, as well as our relations with the Barbary Powers, are entirely satisfuc- tery. The rebellion which has so long been flagrant f China has at last been suppressed with the @o-operating good offices of this govern- ment and of the other Western commercial, Mates. The judicial consular establishment has be- @ome very difficult and onerous, and it will need legislative regulation to adapt it to the extension ef our commerce and to the more intimate inter- @ourse which has been instituted with the govern- ment and people of that vast empire. pocial intercourse among the Western nations. ‘ Owing to the peculiar situation of Japan and the @nomalous form of its government the action of (hat empire in performing treaty stipulations is Nevertheless good progress has been effected by the Western Powers Our own pe- @aniary claims have been allowed or pat in course @f aettlement, and the Ialand Sea has been re- There is reason also to be- Geve that these proceedings have incroased rather $han diminished the friendship of Japan towards fmconstant and capricious. moving with enlightened concert, @pened to commerce. the United States. INTRRNATIONAL TREMORAPH LAWS. ‘The proposed overland telegraph between America and Europe, by the way of Behring’s “Weraits and Asiatic Russia, which was sanc- foned by Congress at the last session, has been ndertaken, under very favorable circumstances, | byan association of American citizens, with tho eordial good will and sapport as well of this government us thove of Great Britain and Russia. Assurances have been received from most @ the South American States of their high appreciation of the enterprise, and their readiness $0 co-operate in constructing Hues tributary to that world-enciroling communication. 1 learn with ganch aatinfaétion that the noble desigh of # tele- graphic communication between the eastern coast @ America ag’ Great Britain bas been renewed with full oxpectation of its early accomplishment, Thos it is hoped that with the return of domoatic perce the country will be abie to resumo with @metyy and advantage hy eommorce and civilization. Ov SOUTHERN PoRTs. Phe ports of Norfolk. Foroandina and Pen China is to be accepting with hearty good will the @enventional laws which regulate commercial and former high carcer of sacola have been opened by tion, It is hoped that foreign merchants will now consider whether it t not safer and more profitable to themselves, as well as just to the United States, to resort to these and other open ports, than it is to pursue, through many hazards and at vast cost, 8 contraband trade with other ports which are closed, if uot by actual military operations at* least by s lawful and effective blockade. OUB RIGHTS UNDER MARITO LAW—BRABIL AMD ENGLAND. It is possible that if it were a new and open question, the maritime Powers, with the light they wow enjoy, would not concede the privileges of a caval belligerent to the insurgents of the United States, destitute as they are and always have been equally of ships and of ports and harbors. Disloyal emissaries have been nei- ther less assiduous ner more successfel during the dast year than they were before that time in their efforts, under favor of that privilege, to embroil } our country in foreign wars. The desire'and de- ‘termination of the maritime States to defeat that design are believed to be as sincere, and cannot be more earnest, than our own. Nevertheless unforseen political difficulties heave arisen, es- pecially in Brazilian and British ports, and on the northern boundary of the United States, which have required, and are likely to continue to re- quire, the practice of constant vigilance and a just and conciliatory apirit onthe part of the United States, as well .as of the natious concerned, and their governments. Commissioners have been ap- pointed under ¢he treaty with Great Britain on the adjustment of the claims of the Hudson Bay and Puget’s Sound agricultural companies in Oregon, and are new proceeding to the execution of ‘the trest assigned te them. In view of the insecurity of life im the region adjacent to the Canadian border by recent assaults and depredations committed by inimical and des- perate persons who are harbored there, it has been thought proper to give notice that after the expiration of six monthe—the period con- * ditionally stipulated im the existing arrangements with Great Britain—the United States must hold themselves at liberty t0 morease their naval ar- mament upon the lales, if they shall find that proceeding ‘necessary. The condition of the border will necessarily come into consideration in connection with the question of ‘continuing or modifying the righte of transit from Canada through the United States, as well as the regula- tion ofimposts, which were temporarily established by the Reciprocity treaty of the 5th of June, 1864. I desire, however, to be understood while making: this statement that the coldnial authori- ties are not deemed to ‘be intentionally unjust-er unfriendly towards the United States; but, on the contrary, there «is every Treason to joxpect that, with the approval of the imperial government, they will take the necessary measures to preven! new incursions across the border. ° SLAVE TRADERS. For'myself I have no.doubt of the power and uty of the Executive, under the law of nations, to exclude enemies of the human race from an asylum in the United States. If Congress should think that proceedings in such cases lack the authority of law,-or ought to be further regulated by it, recommend that provision be made for effectually preventing foreign slave traders. from acquiring domicile and facilities for their c ‘occupation in oer country. i ’ wmeRaTiON. = The act passed at the last session for the en- couragement of emigration has, as far as was possible, been put into operation. It seems to need amendment which will enable the officers of the government to prevent the practice of frauds against the immigrants while on their way and on their ‘al im the ports so as to secure them here a free choice of avocations and places “of settlement. A liberal disposition towards this great national policy is manifested by most of the huropean States, and ought to be reciprocated on our part by giving the immigrants effective national protection. I regard our emigrants as one of the rincipa! replenishing streams which are appointed y Providence to repair the ravages of internal war aud its waste of national strength and health. All that is necessary is to se- cure the flow of that stream in its present fulness; and to that end the government tmust in every way make it manifest that it neither needs nor desires to impose involuntary military service upon those who come from other lands to cast their lot in our country. THR BUDGET OF THR NATION, The financial affairs of the government have been successfully administered. During the last year the legislation of the last ses- sion of Congress has beneficidlly affected the revenues. Although sufficient time has not yet e'apued to experience the full effect of several of the provisions of the acts of Congress imposing increased taxation, the receipts during the year from all sources upon the basis of warrants bigned by the Secretary of the Treasury, including loans and the balance in the Treasury on the lst day of July; 1863, were $1,394,796,007 62, and the aggregate disburaements upon the same basis were $1,298,056,101 89; leaving a balance in the asury, a8 shown by warrants of $96,739,905 73. Deduct from these amounts the mount of the principal-of the public debt redeemed, and the amount pf issues in sub- stitution therefor, and the actual cash opera- tions of the Treasury were—Receipts, $884,070, 646 77; disbursements, $865,234,087 86, which leaves a ‘cash balance in the ‘Treasury of $18,842,558 71. Of receipts there were derived from customs $102,316,152 99;" from lands, $585,333 29; from direct taxes, $475,648 96; from intermal revenue, $109,741,134 10; from miscel- Janeous sources, $47,511,448 10, and trom loans, applied to actual expenditures, in- cluding former balance, $625,443,929 13. Thete were disbursed for the civil service $27,505,599 A for pensions and Indians, $7,517,- 930 97; for le War Department, $600,791,842 97; forthe Navy Department $85,733,293 79; for in- terest of the public debt, $53,096,421 69—making an aggregate of $46,234,087 56, and leaving a balance in the Treasury of $18,542,568 71, as be fore stated. For the actual receipts:and disburse- ments for the first quarter, and the estimated re- ceipts and disbursements for the three remaining qnarters of the current fiscal year, and the general operations of the Treasury fn detail, [ refer you to the report of the Secre- tary of the Treasury. I concur with him in the’ opinion that the proportion of the moneys re- quired to mect the expenses consequent upon the war, derived from tuxation, should ‘be still farther increased, and I earnestly invite your attention to this subject, to the end that there may be such additional legistation as shall be required to meet the just expectations of the Secretary. The pub- lic debt on the Ist day of July last, appears by the books of the ‘reasury, amounted to one billion | seven hundred and forty thousand million six hundred and ninety thousand four hundred and eighty- nine dollars and forty-nine cents ($1,740,000,000). Probably, should the war cootinue for another yeat, that amount may be increased by not far Tron five hundred imillions. Held ‘as it is for the most part by our own pe jthas become @ substantial branch of nati though private, property. For obvious reason: more nearly this property can be distrib: among all the people tue better, favor euch general distribution greater indpcem o become owners miglit, perhaps, with good effect and with. out injury, be presented to persons of limited means, With this view I suggest Whether it might not be both expedient and competent for Congress to provide that a limited amonnt of some future [s- ue of public securities might be held by any Jona fide parohaser exempt from taxotion aud from seizure for debt, uder sich restrictions aud limi+ tations, as might be neecssaty to guard againet abuse of 80, Important a privile ‘This woud enable pradent persons to sot aside a) small annuity efetiet a poawble Jay of want, Privileges Liké'these would render Vie possession of sich Sedutiti¢e tor the amauns limited mast desi rable to every person of smal means who might be able to save enough for the purpose. aront advantage of citizens being oxvditora as W it 7 proclamra- {| as debtors, with relation to the public debt, NEW YORK, WEDNESDAY, DECEMBER 7, 1864. HE NEW YORK HERALD. ——==3 diligently administered. There hove been added is obvious. Men readily perccive that they | to the pension roijs der.ng the year ending the cannot be much oppressed by a debt which | 30th day of June last the names of 16.776 in- they owe to themselves. The public debt | valid soldiers and of 271 disabled on the lat day of July last, although somewhat,| ing the present number of ar sioners 22.767, and exceeding the estimate of the Secretary of the 712. Of widows, Treasury made to Congress at the comnieiicement of last session, falls short of the estimate of that officer mtude in the precedi December ag to its prebabie amount at beginning of this ar by the sum of. $3,995,079 33. This fact extibits a satisfactory condition ‘and condect of the operations of the Treasury. THE NATIONAL BAaNkiN@ AYSTEM ‘ fs pro to be acceptable do capitalists and tothe peeple. On the 25th day of November five hundred and eighty-four national banks had been organized, & considerable number of which were conversions feom State banks. Chunges from the State system to the national system are rapidly taking place, and it is hoped that very soon there will be in the United Siates no banks of issue not authorized by 8 22, 8 of army pen aud of navy pension- of the year the num- cusioners wee 1,480. Only e soldiers, of whom seven e remainder are those who @ pensions becruse of rela- tionship to Revoiutionary soldiers. Dpring the kd ending the 30th of-June, 1864, $4,304,616 92 | have been paid to pensioners of all classes. TES OMARITABLE INSTITUTIONS OF TAL DISTRICT OF COLUMBiA, I cheerfally commend to r continued patron- age the benevolent institutions of the District of Con, , and no bank note circulation not secured | Columbia whic! ve hitherto been established er by the government. ‘that the government and the | fostered by Congress; and respectfully refer for people will derive general bencfit from this ehange- | foformation coucerning them, and in relation to in the banking eystem of the country }the Washington Aqueduct, the Capitol and other can hardly be questioned, The national titers of local interest, to the report of the system will create a reliable and permm- | Secretary. nent. influence in support of the national AGRICULTURE. credit, and protect the people against losses in the use of paper money. Whether or not auy further legislation is advisable for the suppression of Slate bank issues, it will be for Congress to de- termine. It seems quite clenr that tle ‘'reasury. cannot be satisfactorily conducted unlers the ain can exercise @ restraining power over, bank note circulation of the country. THE MILITARY SITUATION, The report of the Secretary of War and the ac- companying documents will detail the campaigns of the armies in the field since the date of the last annual Message, and also the operations of the several adminisirative bureaus of the War Depart- ment during the last year. it will also specify the } measur deemed essential for the national de- fence, and to keep up and supply the :equisite ‘The Agriculture] Department, under the super- vision of its present energetic and faithful head, is idly commending itself to the great and vital interest it wis created to advance. It is peculiarly the people’s department, in which they fee! more directly concerned than in any other. 1 commend it tothe continued attention and fostering care of Congress. THE WAR. OUR MILITARY OPRRATIONS—PROGKESS OF RECON- STRUCTION. ‘The war continues. Since the last annual mes- sage all the important lines and positions then ov- cupied by our forces have been maintained, and our armies have steadily advaneed, thus liberating the regions left in the rear, so that Mis- souri, Kentucky, Tennessee, and pars of other military ferce. rs har f Fi ate TUR NAVY. ee , have again produced reasonably fair crops. The report of the Secretary of the Navy presente |, Most remarkable feature in the military ry <onpakeeniea and medistectare exhil if of the Seeepeed of bape a So Sen ee affairs of that department aad ef the naval service. It is a subject of congratulation and laudable pride te our countrymen that a navy of such vast proportions has been organized in so brief a period, and conducted with so mash eSicinncy aol success, The general exhibit of the navy, iscluding ves- sels under construction om the 1st of December, 1864, shows a total of six hundred and seventy-one vessels, carrying four taousand six hundred and ten guns and five bandred and ten thonsand through insurgent region. It tends to show a great.increase of our relative strength that our General-in-Chief should feel able to confront and hold in check every active torce of the enemy aud yet to detach a well appointed largearmy ey move = guch an expedition. The reat une being known, conjecture ia regard to it shot not here be induiged~ [mportant movements have also occurred dur- the year to the effect of moulding society for theo, bupdeed, Sad BGC Ae sone salon. Bi Gueality inthe Union, “Although, short of com: aueee yay db eae ‘or in. battle,}, Plete success, it is much in the right direction that of eighty-three pein oe ed sixty. Frelve thousand citizens in each of the Btates of gph t y, and Louisiana have organized loyal seven guns, and forty-two thousand four hundred and twenty-seven tons. The total number of men at this time in the naval service, including offi- cers, is eg AT cee thousand, ‘There have kee capture navy duri an three hun, hundred i iy " itis, and the Tkansas ats governments with free constitutions, and are earnestly struggling to maintain and admin- 4 them. The movement in the same direction, more extensive though less definite, in Missouri, ‘Kentucky and Tennessee, should not be overlooked. But Maryland presentathe example of complete mines, Maryland is secure to liberty and Union for all the future. The genius of rebellion will no more claim,Maryland. Like another foul spirit being driven out, it. may seek to tear her, but it will woo her no more, and twenty-four vessels, whole number of naval captares since hostilities. commenced is one thousand three hundred and Rave pty ind of fg Ad et fine sixty: sevenare etenmets, The gross’ proc arising from the sale of sonihernned. ote Ee : t far reported amounts to $14,3: ay ‘amount of such oes is stil Ke jer ao jca- | ABOLITION OP SLAVERY BY CONSTITUTIONAL AMEND- tion, and yet te e ex). : MENT. a} peudieures of the Navy it of every de- At the last session of Congress a proposed scription, including the cost of the immense squad-'|'emendment of the constitution abolishing slavery, rons have been called into existence, | ‘throughout the United States @ the Senate, the 4th March, 1861, to the 1st of © oveniber, “but fa for lack of the requisite two-thirds vote 1964,.are $288,647,262 35... YX: favorable con- sideration is invited to the recommenda: tions of the Secretary of the Navy, especially in. regard te a navy yard and suitable establishment for the construction and repair of: iron vessels and the ma ry and armature for our ships, to which reference. was made in my last annual Message. Your attention is also invited to |the views ex. pressed in the report in relation to the: legislation of Congress at ite last session. in respect to prizes in oar inland waters. 1 cordially concur the recommendation of the Secre' ae to the pro- admiral in in the House of Representatives, . Although pe present is thé same Congress, and prt same meémbers, and without SnqeSoning the | wisdom or patriotism of those who stood in oppo- sition, 1 venture to recommend the reconsidera- tion ands peeves. of the measure at the present session, course the abstract question is not changed; but an intervening election shows almost certainly that the next Congress will pass the mea- gure if does not. Hence there is only a ques. tion of time as to when the proposed amendment willgo to the States for their action; andas it is to creating the new rank ice. at all events, may we not agree that the sooner ps warvicg bi . er i not lai % hat pe aye y ABW. ‘ ag impesea a on membors change the! Your attention ta invited 16, the’ report ef. paid or their vous any further they aa an Addl. Postmaster General for a detailed account of ‘donal el it to be cousidered. Their judgment operations and financial condition of the ‘Post |_may be , AS It is the voice of Office Department. The postal revenues for the | the people, now the first time. heard. year endiug June 30, 1864, amounted ‘to $12,438,- | upon the question. In a great national crisis like oura wi action among those seeking a common ie very desirable— almost indispensable; and yet mo approach to such 253 78, and the expenditures to $12,644,786 20— the excess of expenditures over receipts being $206,652 42. The views presented by the Post- master General on the ject of special grants | unanimity is attainable unless some deference by the government in ‘aid of the establish- } shall be paid to the will of the majority, simply. ment of new lines of ocean’ mail steamships, | because it is the will of the majority. In this case and the policy he recommends ‘for ‘the develop- | the common end is.the maintenance of the Union; ment of increased commercial intercourse with | and among the means to secure that end, such adjacent aud neighboring countries, should receive | Will, through the election, is most clear- the careful cousideration of Congrens. ly declared in favor of such constitu- tional amendment. THR RECENT PRESIDENTIAL BLECTION. The most reliable indication of public pur- in this country is derived through our popular elections. Judging by the recent canvass and its result, the purpose of the people within the loyal States to maintain the in- tegrity of the Union was never more firm nor more nearly unanimous than now. The ex- traordinary calmness and good order with which the millions of voters met and mingled at the polls give strong assurance of this. Not only all those who supported the “Union ticket’’ INCREASING TOWER OF THE COUNTRY. It is of noteworthy interest that the steady expansion of population, Improvement and gov- ernmental institutions over the new and upoccu- pied portions of our country have scarcely been checked, much less impeded ‘or destroyed, by our great civil war, which, at first glance, would seem to have absorbed almost the entire energies of the nation. The organization and sdmission of the State of Nevada has been completed, in conformity with law, and thus our excellent system is firmly established in the mountains which once seemed @ barren and uninhabitable waste between the Atlantic States and those which | 80 called, but @ great majority of the have grown up on the coast of the Pacific Oc: opposing party also may be fairly claimed The Territories of the Union are generally to entertain” and to be actuated by Idaho | the same purpose. It is an unanswerable argument to this effect that no candidate for an, office whatever, high or low, has yertured to sce! votes on the avowal that he was for giving up the Union. There have been much impugning of motives and much heated controversy as to the roper means.and best mode of advancing the Jnion cat but in the distinct issue of Union ‘or no Union the politicians have shown their instinctive knowledge that there ig no diversity among the pie. In affording the people the fair opportunity of showing one to another and to the world this drmness and nnani- mity of purpose the election has been of vast value to the national cause, Tie election has condition of prosperity and pepte growth. and Montana, by reason of their great distance and the interruption of communication with them by Indian_ hostilities, have been only partially or- ganized; but it is inderstood that these difficulties are about to d’sappear, whieh will permit their governments, like those of the others, to go into speedy and full operation. OUR INTERIOR AFFAIRS. 1 As intimately cortuected with, and promotive of, this materiai growth of the nation, [ ask the at tention of Congress to the valuable information and important recommendations relating to, the public lands, Indian sfaira,, the, Pacilic rail- the’ vepers ae pry Yee “pry i exhibited another fact not lesa valuable to be terior, which | i herewith | transmitted, Brenig la tag woes hepantdes becd cake and which report also embraces the sabjects of | tional resources—that of liying men. Wiule it 4s melancholy to reflect that the war has filled. so Many graves and carried, mourning. to so many hearts, it is some relief to know that, compared with the baa the fallen have been so few. While corps and divisions aud brigades and regi- ments have formed and fought and dwindled and gone out of existence, a great majority of the men who composed them are still living. The same patents, pensions and other Lenigs at public inte+ Test pertaining to his departmént. The quantity of public land disposed of daring the five quar: ters ending on the 30th of September last was 4,221,342 acres, of which 1,538,614 acres were entered under the Homestead law. | ‘The remainder was located with military land warrants, agricul- tural scrip certified to States for railroads, and sold for cash, @ cash received from saies and location fees was $1,019,446, The: income from - — Pir ney bar The _elec- sales duving the fiveal year ending June 30, Is4, bouta pew an be: Gouna, The Btetes erat was $678,007 21, agninst $13 95 received dus larly holding elections, ‘both now and four 2 ring the preceding year. te nomber of acres Pirveyed durin the year i‘ been equal to the quantity dispose ee there is open to ears ago—to wit, California, Connecticut, elaware, Illinois, Indiana, Iowa, Kentucky Maine, Maryland, Massachusetts, Michigan, Min- mon gmc about 133,000, acres of surveyed nevota, Miseou eid Ham: peice. New Jersey, THE PACIFIC RATLROAD AND TRLRGAArH. New York, Ohio, Oregon, Feunsylvania, Khode The grent enterprise of connecting the Atiantic | Island, Meg est witainia and Wircon- with the Pacific States by railways and telegraph | SB cast | 3.0%, os new, against 3,870,222 cast then, showing an aggregate now of 4,982,011, to which fs to be added 33,762 cast now in the new States of Kansas and Nevada, which States did not vote in 1560; thus swelling the ag- gregate to 4,016,713, @ad the uct increase during the three years’and ® balf of war to 145,751, A table is appended showing particulars:— lines has been entered upon with a vigor that gives assurauce of success, notwithstanding the embarrassinents eo from the prevailing high prices of materials and labor, The route of we main line of the read has been definitely located for one hundred miles westward from the fniiial fon at Omaha City, Nobraska, and @ pres iminaty location of the Pasifio Railroad Vols of 1860, Vote of 1808, of Calffornia has been made from Sacramento | Kevtacky . 01,300 astward to the great bead of the Macker river, in | Man Nevada, Numerous discoveries of gold, silver oud cinnabar mines have bau added to the many here- tofore known! and the country « pied by the Sterra Nevada and Rocky Mountains and the subordinate ranges now teem with enter | N prising labor, which Is richly reménorative. It | New dereoy an 6 is believed that the products of the Hi-Res 720,004 precious metals in that region has daring mnt sous reached, if not exceeded, ),000,000 612/007 $10 Ie Rhode isiand Vermont.. Wort Virgi Wisconsin, the systagn in Californi it | Total onder the present. orgunizatio nagene | the Indians there will be attevded with reasor al Kates, success. Muci®¥etremains to be done to provide orads for the proper government of the Ineiaus In otur parts of ‘the ‘eountry’'to reniler: ity serure for the advauclog wettiér, aud to’ provide ‘for the welfare of the Indians, The Secrejary rejterstes’ To this again should be added the number of al hia recommendations, and to thew the attention of | foldiersyin tie tf from, Mnssachpsetts, Wl Congtess im invited. islaudy New Joreey, Delaware, Lndiapa, Il YR PeNBION LIST. | Sn Caliorsia, Fit’ Vy the taws of Ul at ‘The ‘Nberal’ provision made by Congress for | could wot vote away yyy Weir ‘hotties, ah wh lr piylad pelisignk te Revalld doldiers and savore of) nuwber cannot be tiwn’ 90,000, Nor | tha republic, ahd to thie witows, orphans aid de | yot isythia all. Che nun ber tienes lerritorins iv triple vow what it waa four ago, while thousands, white and black, joa a the natioual arms ress back the insurgen pendént mothérs of those wlto hive "feller inv trate tle or dioa of disease contracted or of wounds Fe elved in the porvice of their country, have been lines, So mu tively by the inquire how the duced, or to show it : been ev but for the war, wh y true. important fact remains demonstrated that we have more men now th ven the war began; that we are not ex! a process of exhaustion; that t strength, and » if need be, w test indefinite This aa io men. a sources are pow more complet? and abundant than ever. The national resources then are unex hausted, and, as we believe, inexhuustible. The publig, purpose to re-establish and maintain the national authority is unchanged, and, as we be- lieve, unchangeable. The mauner of continuing the effort remains to choose, TUS RUBULS MUST BE SUBDUED, On careful eration of all the evidence ac- cessible it 3a to me that > attempt at negotiation with the insurgent leader could re- anit in any good. He would accept of nothing short of the severance of the Union, His declara- tions to that cflect are explicit and oft repeated. He does not attempt to deceive us. He affords us no excuse to deceive ourselves. We cannot voluntarily — yie it. Between him and us the issue is st, simple and inflexible. It is an issue whieh can only be tried by war, and decided by victory. If we yield” we are beaten. Ii the Southern” peopie fail him he is beaten, Either way it would be the vic- tory and defeat following war. What is true, how- ever, of him who hends the insurgent cause is not necessarily true of those who follow, Although he cannot reaceept the Union they can. Some of them we know already desire peace and reunion. ‘The wamber of such may inereese. They can at any moment have peace simply by laying down their arma and submitting to the nationai authority. under the constitution. After so much. the government could not if it would. maintain war against them. The loyal people would not sustain or allow it. If questions should remain we would adjust them by the peaceful means of legislation, conference, courts and yotes. Operating only in constitutional and lawful channels, some certain and other pos- sible questions are id would be beyond the Ex- ‘ecutive ower to adjust, as, for in- stance, e admission of members into Congress, and whatever might require the appropriation of money. The executive power it- self would be greatly diminished by the cessation of actual war. Pardons and remissions of for- feiture, however, would still be within executive control. In what spirit and temper this control would be exercised can be fairly judged by the past. A year ago general pardon and amnesty, upon specified terms, were offered to all, except certain designated classes, and it was at the same time made known that the excepted classe were’ still within contemplation of special clemency. During the year many availed them- selves of the general provision, and many more would, only that the signs of bad faith in some led to such precantionary measures as rendered the practical process less easy and certain. During the same time also special pardons have been granted to individuals of excepted classes, and no voluntary application has been denied. Thus, | practically, the door has been for a full year open to all, except such as were not in con- dition to make free choice—that is, such as were in custody or under constraint. It is still so open to all; but the time may come, probably will ablic duty shall come, when demand that it be closed, and t in lieu more rigorous measures than heretofore shall be adopted. THR END OF SLAVERY. In ey the abandonment of armed resist- ance to the jonal authority on the part of the insurgents as the only indispensable condition to ending the war on the part of the govern- ment, I retract no heretofore id as to slavery. I repeat the declaration made a year ago, and that while I remain in my present posi- tion 1 shall not attempt to retract or modify the Emancipation Proclamation; nor shall I return to slavery any person who is free by the terms of that roclamation, or by any of the acta of Cae if the people akould, by whatever mode or means, itan executive duty to re-enslave sach persons, another, and not I, must be their in- strument to perform it. In stating a single condi- tion of peace, I mean Cer ng say that the war will cease on the part government when- ever # shall have ceased on the part of those who began it. ABRAHAM LINCOLN. THE BUDCET OF THE SECRETARY OF THE TREASURY OUR NATIONAL DEBT,,. den hen ke. In presenting to Congress his annoal report on the state of thé finances, in obedience to the requirements of law, the Secretary of the Treasury feels that, whilo tucre is nO Occasion to distrust the ability of ine people of the United States to bear the great and incressing burdens imposed upon them by the arduous and prolonged struggle for national existence in which they are engaged, there is, nevertheless, much in the Mnancial condition of the government which requires careful and anxious con sideration, Among the serious duties devolved upoo him, the Secretary recognizes a full and clear exposition of that condition as first io importance, ip order that the wisdora of Congress may proviae @ remody for existing evils, and guard against the recurreuce of sitniiar evils in the future, The Sect 'y'8 assumption of oflice w Dearly coincident with the commencement of the preseot Becal year that be would be vatura!ly impelled to begin by stating the exact condition of the Treasury upon that da Before proceeding to do 80, however, brief re view of the financial measures adopted since the out- break of the rebellion, and of their operation aud erect, may got be without valine in endeavoring to arrive at just conciasions with regard to the future. BREF REVIRW OF THE FINANCIAL MRASURMS OF THE ADMUNIS- RATION. On the fourth day of March, A. D. 1861, the national PRICE FOUR CENT debt was comparatively so inconsiderable as hardly to doverve the name, Acoustomed to a degree of prosperity heretofore avexampled in the history of nations, the people of the United States bad growo rich and powerful, withoat being conscious of national burthens, and equally unconscious of their owe vast and twereasing ability to sustain a weight which, could it have been anticipated, might have seemed altogether beyond their atrengiu. Unacoostomed for & long course of yenrs to great oational efforts, 1t was fortunate that their power of endurauce should be tested only by degrees, as th whica Providence bad prepared for them 4 its vast proportions, and the necessity of great and long cout): effort became’apparont. Had jt then been foreseen that what was Delleved to be @ contest for months was to be continued for years, and that bundreas of millions of pub Hie dat# would be swollen Into thousands of millions bo- fore the close of that contest, it may well be doubted whether, ignorant ag they were of their own immense resources, the peoplo might Hot have sbruvk appalled from an undertaking which contemplated @ sacriice #0 far exceeding all former experience. In bis firet report to Congress, ue on the 4th day of July, 1861, my predecessor estimated the whole amour required for tbe service of the fecal year ending Juu# 80, 1802, at $314,519,591 87. To meet thi anticipated ax. ponditure Coo , vy AM act approved July 17, 1861, authorized loun of $270,000,000, which, with thé ord& nary fovanues, wae considered an ample provision fur tho exigencies of the yaar, By an act approved Avguss 5, 1861, COngrése further authorized w direct tax of $29,009,000 and a tale of tareo per contam oo the exces of al! incomes over $600 per annum. It was not anite: pated, however, that! auy reveriue derived from ihese leet mentioned gor your. tbe W Would be avaiianle with Ex; erience proved that tho estinars of the -ere tary, though founded on what seemed to bo Ne dt Was Altogether Iandeqaatefatid in Wis rep © WAS Compelled to ack Congrend & lciehey of $NA \do4,s27 02 | pirt ho éetiinAted the wxpanditurcs of the O rthenatig ou the ist day of July, 1 255 81, OH the B0tty of December, 1801, WA! da, Mowe OF the Ktaie Dank# duspendod syedio pay ments. ja view of this condition of affairs, and of the large reli tort 9 prov to and a th 5. tthe public wants, Con ere bich need oaly be alluded to, 1t had become manifest that waoile mack she largest pore tion of the amoual required most be provided by loans ia seme form, resort must be bad to « wider aod more stringent taxation in order to preserve the credit of the veroment, Accordingly the act of July 1, 1962, called the {nteroal Revenue law, was passed, providing for @ levy of duties on various domestic manucagtures, upem trades and occupations, and also providing @ system of stamp income and other duties, This important mea~ Sure, it was hoped, would, in connection with the duties on imports and the sums derived from other sources, | Mrnish such a proportion of the revenue needed as would place the gations! credit upoo @ siable foundation, through the ence thus afforded of @ readiness te impowe on the present @ reasonable share of public bur- deng, leaving to the future 00 more than in justice it ooght to bear, If these hopes were not realized, the disappointment was perhaps imputablo im a great to the fact that the system adopted was one to whieh the people bad not beem accustomed; that the machinery was complicated, the officers wbo were to execute inexperienced, and that suf~ ficient allowance was not made for the important clement of time, which afone can give to apy such system tho: requisite efficiency, With @ like view to increase the revenue, and to sustain our own industry under the bur. den imposed by the Intetna:t Revenue law, Congress, by: act approved July 14, 1862, largely inereased the dau ties on imports, Tt was justly belteved that these measures could hardly fail to Inspire confidence in the ability and purpose of the nation to meet all its obligations in the present and the future. The necessities of the Treasury were, however, immediate, To raise money in large amounts by taxa- tion, and even by loans, requires more time thaa oan always be afforded, with iarze armies in the field and great navies afloat, ‘The demands of war are imperative, acd cannct await the slow process of financial negotiations to meet a demand thus urgent. Congress, by acts of February 26 and July 18, 1862, saw tit to authorize the emission of United Stes notes to the smount—includiog sixty miilione of Treasury notes previously authorized, which were ate for coin, decler- udiie and private, ull the requisites of currency, ible, at the will of the holder, States paying loterest at six per centum sem! annually in coin, to securé which ihe revenue from customs, also payable ta coin, wan sect. fically pledged. The same act of February 25, 1862, authorized the issue of bonds to the amount of five hun- dred milliong, increased subsequentiy to five huudred eleven millions, redeemable a:ter Ove years and payable io twenty years from date ing them a legal tend aod clothing them w ‘Theso notes were con ending on the 30th of June, 1868, the retary wubmitted on the 4:0 of liecember. 1 & deficiency for the current year of $276,912.57 66, while the estimated amounts Of @: tures over re- ceipts from Natrol anaes for the succeeding year wae $622 388,186 56. provide for the aggregite of these amounts, Congress, by an act aj wed March 3, 1863 authorized a loan’ of $300,000,C00 for the current and Of $600 ,000,000 for the tben next fiscal ond section of the same net the Secre! to isnue, aga pert of guid loan, $400, of Treasury notes, bedring interest at jog six per centum plas payabie: in lawful money, he 4) notes, payable at periods ex! ocd their fae might be made a legal tender at their ue. By third section $150.000,000 of U1 States wotes, of a like character with those issued under the provisions. of former acta, were. as a cart of It will be seen that, by the several acts of Congress ‘teferred to, government puper as # substitute for com under tne respectiv iguations of Upited States netes and Treasury nutes might be issued the amount of },000.000, viz:—United Stutes Tressar: ting interest, to the amount of, which $60,000,000 were to he hel redemption of temporary deposits, and Yo be replaced as goon as possible, thas leaving the whels'amount joteoded for circulation but $400,000,000; BAA, $400,000.00 oe Treasury votes, bearing interest, and which it was bi Qod believed would not remain in Gffculati ap they could be made legal tender onty for their face value with- out interest. In the preceding enumeration of thé soveral acts passed by Congress with « view to provide thé large meave re- quired to the sunual expenditures Cluding the fiscal year of 1864, 00 made to the severai auxiliary measur: the exigencies of the hour, but welther dimiuishing the amount required, and. purpose than a mere temporary resource. Of such wastes act of March 1, 1862, nuthoriziag the of indebtedness, payable one year or alter date, with six per cent juterest, and tbe several acts author: Mecretary to receive pot less than thirty days, to be repaid at teu days notice. Of a somewhat similar character, frém its necessarily Hmited amount, fractional currs the fourth section ine act of March 3, THE DIFFICULTY OF MA‘ ING Con! reeriM ATE. The object of the Secretiry in ailing attention to these various acts of Congress.im connectiqn of the estimates of bie predecessor, is to show: — Pirsi—Toe uller imporsiviity, fn times like the pre- fen}, of aecertaining, with any degree of certainty, pros- Pective demands upou the Treasury. Estimates on the most liberal scale may be. ag they have been, found in- Adequate, Hence arise largo defleeticies, occasioned by QD unexpected inc-ease of miimary fo in the frat Place, aod upon a rise of prices ior material, invariably Consejuent upon military operations conducted apon a gigantic ecale, even if the currency could be maintained to & sound 08 daturel condi oncisew Secondiy—The diilioulty of ao; icy 08 fubject to the contingettien ott per. it mcd the Secretary's judgment, hot only’ @ifficult but impossible to apply fixed rules to a conditiowe! afiairs coustautly chav ging, or to meet comtiogeucies, which o0 bunman wis. dom ean foresee, by « #teady application of general laws, especially io a government and with @ people where poblic opinion i# the cootroliing elgmeut, and that opin- jon is natucder the ‘irection of those who may happen to Administer public aif THR Y OF PATER MOnmt Accordingly it hes been seen thatthe duct financial operauens on eo imimens fe basis son pro otber species of eurrency of unavorteble, 98 was uninawerablyy rated by my predecessor, im his report of ber, 1962 FF With diuger, a8 govercmeut pay almort lavarieety proved, thére was, inder the cifeumstances, no other resource, Ol course ihe danger Maereases with enlarged demands upon the lreasory growing out of increased ex- prices beast of labor from productive gravated demand tor ots and material jncident Atate of war. The problem to be Rolved ia, bow to miti- gate thé evil, if it caunos be fullymvoided. {f loaua can be negotiated at reasonable rates,,aud the Treasury oan thus be kept ia @ condition w méet current demands, it ie not diffeult to restrain the efroulation of govera ment paper within sate li a tain jo a time of peace—thoagh, Wika abuodant resources, it always ehould be—is o'tea fouad impeeeibie when wer scale and long cot vt Das followed reUits.. aecotn panied b ations forma, to what was supposed Lo be the choice of lendere A SPACIk PAR NOT LOST tour ov, Oor notes have shown &similar diversity of character, While it hae been found imposrible to avoid the necessity of using them toan extent which could aot but aggra- vate the troubles [peident to the nec ties of oO condition, yet, though foreed | to lasue of paper’ for the time, the basis was pot lost sight’ of, ae of interest ou long loans to obit’ was amply secured, Aud th ogh in several of the mote authorizing the issue of Douds at ong period, paymentof the pripcipai, at matus rity, in comp, 18 not speciieally provided, tne omiseiom, 1% as iccidental Ag there could bave been istinetion betweea the diferent rogard, it 8 reapeet wily wud$ Upon this point by p Althorgn the Wisdom of thus securing f interest oo bunds tp colo bas beea ques toms, to bo no intention to make classes of securities iu Of (hose disposed t@ enhance ih: Speculative Parposesy bye Secretary ia f the inion that these Mesures were Hot only wire Dut ne- ry Wt the bine, and groatly aid d in susteioing pudy He credit. THR IGEUS OF HONDS AND Tf The expenttores for the preeeu year vo siignt ¥ ex. ceded tao est! e', OBa8 the last see hea of von, Cavidered noeneRary use the aru HM Ng rowed by wa, o had anown, how: ever, tual boas of for wore Advisibie, ‘By am oproved Mur hority was vivea to the Sgoretary t0 sue bo at ggg hea. of 0 muct ; hood sot of March any period fh Ot lest the 3, 1968, was repealed, od ao wriouat of Reveuty live tulle ad power was given to borrow oe of doltare, on boade redeemable ‘rs, and payable not more than Give yeae fy the second on of the same act t the same per conum pavadl® if lawfal m atte piensure OF eSeeretary, inte Donde issued chortey of maid Rew Wis farther empowered to aubatit © j#tyed uMer € of notes wach an: we yovded: WO Luis repo the Aer erat dots Her deg bo log Of the prawent fecal year, irom a bu appears thét, by the laws f@ foros on thay day, the CONTNDED OW FIFIH PAGR