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Supplement to Site Savannah Satlp jerald. The Savannah Daily Herald. MOHUAT UECKNUKH 11. 1809. THE PRESIDENT’S MESSAGE. Htiuge Os the President of the United States to the two Houses of Congress at the commencement of the First Session of the 39th Congress. Fellow- Citizens of the Senate and House of Representatives : To express gratitude to God, in the name of the People, for the preservation of the United States, is my first duty in addressing you. Our thoughts next revert to the death of the late President by an act of parracidal treason. The grief ol the nation is still Iresh; it finds some solace in the consideration that he lived to enjoy the highest proof of its con - fidence by enteriug on the renewed term of the Chief Magistracy, to which he had been elected ; that he brought the civil war sub stantially to a close ; that his loss was de plored in all parts of the Union ; and that foreign nations have rendered justice to his memory. His removal cast upon me a heavier weight of cares than ever devolved upon auy one ol his predecessors To fulfill my trust, I uoed the support and confidence of all who are associated with me in the various depart ments of Government, and the support and confidence of the people. There is but one way in which I can hope to gain their neces sary aid ; it is, to state with frankness the principles which guide my conduct, and their application to the present state of affairs, well aware that the efficiency of my labors will, in a great measure, depend on your and their undivided approbation. The Union of the United Slates of America was intended by its authors to last as long as the States themselves shall last. “The Union shall be perpetual” are the words of the Con federation. “To lorm a more perfect Union,” by au ordinance of the people of the United Slates, is the declared purpose of the Consti tution. The hand of Diviue Providence was'' never more plainly visible in the affairs of men than in the traming and adopting of that instrument. It is, beyond comparison, CBS greatest event in American history ; and in deed is it not, of all events in modern limes, the most preguant with consequences tor every people of the earth ? The members of the Convention which prepared it, brought to their work the experience of the Couled eration of their several States, and of other Republican Governments, old and new ; but they needed and they obtained a wisdom superior to experience. And when for its validity it required the approval of a people that occupied a large part of a continent and acted separately \a many distinct conven tions, what is more wonderful than that, after earnest contention and long discussion, all feelings and all opinions were ultimately drawn in one way to its support ? The Constitution to which life was thus imparted contains within itself ample re sources for its own preservation. It has power to enforce the laws, punish treason, and ensure domestic tranquility. In case of the usurpation of the Government of a State by one man, or an oligarchy, it becomes a duty iff the United States lo make good the guarantee to that Stale of a republican form of government, aud so to maintain the lio mogeneousuess of all. Does the lapse of time reveal defects? A simple mode of amendment is provided in the Constitution itself, so that its conditions can always be made to conform to the requirements of ad vancing civilization. No room is allowed eveu tor tbe thought of a possibility of its coming to au end. Aud these powers of self preservation have always been arrested in their complete integrity by every patriotic Chief Magistrate—by Jefferson and Jackson, not less than by Washington and Madisnu. Tne parting advice of the Father of his Coun try, while yet President, to the people of the United States, was, that “the free Constitu tion, which was the work of their hands, might he sacredly maintained;” aud the inau gural words of President Jefferson held up '‘the preservation ot the General Govern ment, in its constitutional vigor, as the sheet anchor of our peace at home and safely abroad. The Constitution is the work of “the People of the United States,” and it should be as indestructible as the people. It is not strange that the ftamersof the Constitution, which had no model in the past, should not have fully comprehended the excellence of their work. Fresh from a struggle against arbitrary power, many pa triots suffered from harrassing fears of an ab sorption of tbe State Governments by the General Government, and many from a dread that the Slates would break away from their orbits. But the very greatness of our country should allay the apprehension of an encroachment by the General Government. The subjects that come unquestionably within Us jurisdiction are so numerous, that it must ever naturally refuse to be embar rassed by questions that lie beyond it. Were it otherwise, the Executive would sink be neath the burden; tbe chaunels of justice would be choked; legislation would be ob structed by excess ; so that there is a greater temptation to exercise some of the functions of the General Governments through tbe States than to trespass on their rightful sphere. “The absolute acquiesence in tbe decisions of tbe majority” was, at the begin ning of the century, enforced by Jefferson “as the vital principal of republics,” aud the events of the last four years have established, we will hope forever, that there lies no ap peal lo force. Tlie maintenance of the Union briugs with it “tlie support of the State Governments in all their rightsbut it is not one of the rights ot auy State Government to renounce its own place in the Union, or to nulify the laws of the Union. The largest liberty is to be maintained in the discussion of the acts ol the Federal Government; but there is no appeal from its laws, except to the various bruuches of that Government itself, or to the people, who grant to the members of the Legislative and ot the Executive Depart ments, no tenure but a limited oue, and in that mauner always retain the powers of re dress. “The of the Stateß ’ is the lan guugefiof the Confederacy, and not the lan guage of the Constitution. The latter con tains the emphatic words ; “The Constitu tion, and the laws ot the United States which shall be made in pursuance thereof, aud all treaties made or which shall be made under the autbority of tbe United Stutes, shall be the supreme law of the luud ; and tbe judges in every Mute shall be tiouud theruuy, anything in the Constitution or the laws of the State to the 'Contrary notwithstanding." Certainly the Government ol the United Stales Is a limited government ; aud so is every Stale government a limited govern ment, With us, the idea ol limita tion spreads through every form of administration guuural, Slate, aud municipal, aud rests on the gieal distinguishing priori I'h sol the rueognilhiu ol the lights ol man. Ihe uui h i,t republics aiisorla and Ilia iudlvhlu “I in tlie Htalu, presiiilmd his religion, aud >Ollll oiled Ids activity. Thu Ameilcmii syso ui tests ou the assertion ol the eipul right oi uvury mau to life, liberty, und the I'oisnit ol happiness , In Iruudoui of Poll* M anet,, to ihu culture slid exercise *>l all his l“' union Asa uoust uuuut u, lbs Hletu G**v ' • mi,mil Is limited, as to the tiemisl (foe * rmiouil to I Its iolelest o| the Unioll, SS to 'ha individual uiliteri iu the luUdeSls of It, Uloui mates, with piojmi iiuiiisiioui of power, **« isMuiisl lo ihs riHtr- of ihs • oqetUa tiog ol ihn f uilsd Nisi** Ai iu# very tow mencement, when we assumed a plane among the Powers of the earth, the Declara tion of Independence was adopted by States; so were the Articles of Confederation ; aud when the “People of the United States” ordoined and established the Contitution, it was the assent of tbe States, one by one, which gave it vitality. Iu the event, too, of any amendment to the Constitution, the proposition of Congress needs the con firmation of States. W ithout States, one great branch ot the legislative government would he wanting. Aud, if we look beyoud the letter of Constitution to the character of our country, its capacity lor comprehending within its jurisdiction a vast, continental em pire is due to the system ot States. The best security for the perpetual existence of the States is the “supreme authority” of the Constitution of the United States. The per petuity of the Constitution brings with it the perpetuity of the States; their mutual rela tion makes us what we are, and m our po litical system our canned ion is indissoluble. The whole cannot exist without the parts, nor the parts without the whole. So long as the Constitution of the United States en dures, the States will endure; the destructiou of one is the destruction of the other; the preservation of the one is the preservation of the other. I have thus explained my views of the mutual relations of the Constitution and the States, because they unfold tbe principles on which I have sought to solve tbe momeutu ous questions and overcome the difficulties that met me at the very com 4 mencement of ray administra'ion. It has been my steadfast object to escape from tbe sway of momentary passions, and to derive a heal ing policy from the fundamental and un changing principles of the Constitution. I found the States suffering from tbe effects of a civil war. Resistance to tbe General Government appeared to have exhausted it self. The United States had recovered pos session of their forts and arsenals; and their armies were in the occupation of every State, which had attempted to secede. Whether the territory withiu the limits of those States should be held as conquered territory, under military authority emauatiug from the Pre sident as the head of the army, was the first question that pieseuted itself lor decision. Now, military governments, established' for an indefinite period, would have offered no security lor the early suppression of dis content; would have divided the people into vanquishers and the vanquished; and would have envenomed hatred, rather than have, restored affection. Once established, no pre cise limit to their continuance was conceiva ble. They would have occasioned au incal culable and exhausting expense. Peaceful emigration to and from that portion of the country is one of the best means that can be thought of for the restoration of harmony; and that emigration would have been pre vented ; for what emigrant from abroad, what industrious citizeu at home, would place himself willingly under military rule ? The chief persons who would have followed in the train of the army would have been dependents on the Geucral Government, or men who expected profit from the miseries of their erring fellow citizens. The powers of patronage aud rule which would have been exercised, under the President, over a vast, aud populous, and naturally wealthy region, are greater than, unless under ex treme necessity, I should be willing to en trust to auy one man; they are such as, for myself, I could never, uuless on occasions of great emergency, consent to exercise. Tbe wilfull use of such powers, il continued through a period of years, would have en dangered the purity of the general adminis tration and the liberties of the States which remained loyal. Besides, the policy of military rule over a conquered terrilory would have implied that the States whose inhabitants may lmve taken part rn tbe rebellion bad, by tbe act of those inhabitants, cqased to exist. But the true theory is, that/all pretended acts of secession were, from the beginning, null and void. The States cannot commit treasou, nor screen the individual citizens who may have com mitted treason, any more than they can make valid treaties or engage in lawful commerce with any foreign Power. The States attempt ing to secede placed themselves in a condiV tiou where their vitality was impaired, but\ not extinguished—their functions suspended, j but not destroyed. y But if auy State neglects or refuses to per form its offices, there Is the more need that the General Government should maintain all its authority, and, as soon as practicable, re- . sume the exercise of all its functions. On this principle 1 have acted, and have gradual ly and quietly, aud by almost imperceptible steps, sought to restore the righllul energy ol the General Government and of the Slates. To that end, Provisional Governors have been appointed lor the States, Conventions called, Governors elected, Legislatures as sembled, and Senators and Representatives chosen to the Congress of the Lnited States. At the same time, the Courts of tbe United States, as far aseould be done, have been re opened, so that the laws of the United Stales may be enforced through their ageucy. Tbe blockade has been removed and the custom houses re-established in ports of entry, so that the revenue of the United Statc-s may be collected. The Post Office Department renews its ceaseless activity, and the Gene ral Government is thereby enabled to com muuicate promptly with its officers and agents. Tue courts bring security to persons aud property; the opening of the ports in vites the restoration of industry aud com merce; the post office renews the facilities of social intercourse and of business. And is it not happy for us all, that the restoration of each one of these functions of the Gene ral Government brings with it a blessing to the States over which they are extended? Is it not a sure promise ot harmony and re newed attachment lo the Union that, after all that has happened, the return of tbe Gen eral Government is known only as a benefi cence ? I know very well that this policy is at tended wijli some risk; that for its success it requires at least the acquiescence of the States which it concerns; that it implies an invitation to those States, by renewing their allegiance to tbe United States, to resume their lunclions as Slates of tbe Uuion. But it is a risk that must be taken; iu the choice ol difficulties, it is the smallest risk; aud to diminish, aud. if possible, to remove all dan ger, I have felt it incumbent on me to assert one other power of tbe General Government —the power of pardon- As no Stain can' throw a defense over the crime of treason, the power of pardon is exclusively vested in the Executive Government of the United- States. In exercising that power, 1 buvu taken every precaution to connect It with the clearest recognition of the binding force of the laws ol the United States, and an un qualified acknowledgement of the great so cial change of condition in regnrd to slavery which has grown out of tlie war. The next step wuich 1 have taken to re store the constitutional relations oi the Stales, has been an invitation lo thorn to participate in the logit oilier of amending the Constliu lion Every patriot must wish lor u gcncml amnesty at the earliest epoch eouslslenl with public safety. For litis great end there is need of a concuneueu oi all opinions, and thu spirit ol mutual conciliation, All par lius Iu tits lais leirihhi ooulhei must work logetlur iu harmony. It is not list uiui'li to m»n, iu tlui name ol Ihu whotu puunfe, that on ihu oussidi, thu plan of rasloialhui shall priaeud in m,i,|,„tuiiy with a wtlliusuesS lo oast ths disorilurs ol tlie past Into oblivion, au>l that, uu thu mi,,;, ip v «vidvu< u of tlu eerily In tha lulme maluieuaiouol ihs i uiou shall hs put Irsyoud auy doubt by ths loUl" lattou ■»! Ihs iiriNioMtd aoomioomi to U»s I oustilulhm wulub pii,vidus lor ths abolition ut sutvsyy lorvvsr wiihm ths limits of our SAVANNAH, (-EOR4.IA, MONDAY, DECEMBER 11, 1805. country. So long as the adoption of this amendment is delayed, so long will doubt, and jealousy, aud uncertainty prevail. This is the measure which will efface the sad memory ot the past; this is the measure which will most certainly call population, and capital, and security to those parts ot the Uuion that need them most. Indeed, it is not too much to ask ol the States which are now resuming their places in the family of the Union to give this pledge of perpetual loyalty aud peace. Until it is done, the past, however much we may desire it, will not be forgotten. The adoption of the amendment re-unites us beyond all power of disruption. It beats tbe wound that is still imperfectly closed; it removes slavery, tbe element which has so long perplexed and divided-the country; it makes of us once more a united people, renewed and strengthened, bound more than ever to mutual affection and sup port. The amendment to the Constitution being adopted, it would remain for tbe States, whose powers have been so loug in abeyance to resume tbeir places in the two branches of the National Legislature, aud thereby com plete the work of restoration. Here it is for you, fellow-citizens of the Senate, and for you, fellow citizens of the House of Repre sentatives, to judge, eacli of you for your selves, of the elections, returns, aud qualifi cations of your own members. The full assertion of the powers of the General Government requires the holding of Circuit Courts of the United States within the districts where their authority lias been inter rupted. Iu tbe present posture of our public' affairs, stroug objections have been urged to bolding those courts in auy of the Slates where rebellion has existed ; aud it was as certained, by enquiry, that the Circuit Court of tbe United Slates would not be held within the District of Virginia during the autumn or early winter, nor until Congress should have “an opportunity to consider au act on the whole subject.” To your deliberations the restoration ot this branch of the civil authori ty of the United States is therefore ueecssari 'ly referred, with the hope that eat ly provi sion will be made for tbe resumption ot all Its functions. It is manifest that tieascu, 'most flagrant iu character, has been com ' nutted. Persons who are charged with its commission should have fair and impartial \trials in the highest civil tribunals ot the 'country, in order that the Constitution and the laws may be fully vindicated ; the truth clearly established and affirmed that treason is a crime, that traitors should be punished aud the offense made infamous ; and, at the same lime, that the question may be judici ally settled, finally and forever, that uo State of its own will lias the right lo renounce its place in the Union. The relations of the General Government towards the four millions of inhabitants whom the war has called into freedom, have eugaged my most serious consideration. On the propriety of attempting to make the freedmen electors by the proclamation of the Executive, I took lor my c >uusel tbe'Con stitution itself, the interpretations of that in strument by its authors and their contem poraries, and recent legislation by Congress. When, at the first movement towards inde pendence, the Congress of the United States instructed the several States to institute gov ernments of their own, they left each State to decide for itself the conditions for the enjoy ment of the elective franchise. During the period ol the Confederacy, there contiuued to exist a very great diversity iu the qualifi cations of electors in the several Stales ; and even within a Slate a distinction of quality tions prevailed with regard to the officers who were to be chosen. The Conslitutiou of the United States recognizes these diver sities when it enjoins that, in the choice of members of the House of Representatives of the United States, “the elect. >rs in each State shall have the qualifications requisite for elec tors of the most numerous branch of the State’ Legislature.” After the formation of the Coni, slitution, it remained, as before, the uniform usage for each State to eularge the body ot its electors, according to its own judgment; and, under this system, one Slate after anoth er has proceeded, to increase tbe number of its ejectors, until now, universal suffrage, or something very near it, is the general rule.— So fixed was this reservation of power in the habits of the people, auu so unquestioned has been the interpretation of the Constitu tion, that during the civil war the late Presi dent never harbored the purpose—Certainly never avowed the purpose—ofdisregardiog it and in the acts of Congress, during that period, nothing can be found which, during the continuance of hostilities, much less at ter their close, would have sanctioned any departure by the Executive from a policy which has so uniformly obtained. More over, a concession of the elective franchise to the freedmen, by act of the President of the United States, must have beeu extended to all colored men, wherever found, and so must have established a change of suffrage iu the Northern, Middle aud Western Slates, not less than in the Soul hern and Southwes tern. Such as act would have created a nqw class of voters, aud would have been an as sumption of power by the President which nothing in the Constitution or laws of the United Stateswouid have wananted. On the otter hand, every danger of con flict is avoidec when the settl ment of the question is # inferred to the several States. They can, earn for itself, decide ou the mea sure, and wheber it is to be adopted at onco and absolutely; or introduced gradually an J with conditions In my judgment, the freed men, ii they slow patience aud manly vir tues, will sooier obtain a participation in the elective fraachisc througli the States than through the Gejeral Government, even if it had power to intervene. When the tumult of emotions tbit have been raised by the suddenness of tie social change shall have subsided, it may prove that they will re ceive the kindlfest usage from some of those ou whom hey have heretofore most closely depended.' But while I ha vino doubt that now, after the close of the wtr, it is not competent tor the General Goveripient to extend the elec tive franchise in lie several States, it is equally clear that gind faith requires the se curity of the freedilen iu their liberty aud their property, theirright to labor, and their right to claim tbe jilt return of their labor. I cannot 100 strongly uree the dispassionate treatment of this stiject, which should he carelully kept alooct'rom all party strile. We must equally avdl hasty assumptions of any natural impossil|ity for the two races to )live side by side, in (state of mutual benefit and good will. Tblcxpcrimenl involves us in no inconsistency ;lloi us then go on and make that experimei in good faith, and not be too easily dislieajeued. The coatnry is in need of labor, all the freedmen are in need of employ mentiailture and protection. While their right of iluntary migration und expatriation i* not te k> questioned, I would not advise their fond removal and Coloni zation. igtt os rat hr encourage tltOB) lo honorable und useful mluNlry, where it may lie benellciul to ihemtves and to the coun try ; aud, instead oil,asty anticipations of tlie certainly ol fallui lei there lie iioiblng wauling to the lair til of tlie experiment, 'fhu change ill their (ndilioii is ilm substi lution ol ialmr by cok M ct |„r the staius of slavery. Tlu< (readmit cauuol fairly lie sc ciued of miwtliiugnciio work, so long e* a doubl remains almnt bill, cion, ol i boTos iu his pursuits, slid the i i%miy oi Ills i, cover ing his stipulated wont In'itijs-lh,, inlur ests of thu employer a„a|,u employed coin eidu. Thu employer mires in bis work uren spirit aud ala* my,ld il,eae< an he per main*idly n*oi***l iu u*bhsr way Ami if Ihs Mbs ought lo be sbl%, euhni-e lire Uob Ua*l, so ought ths otMfTb* public iutei wsl will he best pi*,n,su p u l( , ssvsrsl gtstss will provids adwttc woic* it,ar tod ismsdie* Inf fhs MMIB, Dslil this Is iu some way accomplished, there is uo chance for the advantageous use of their labor; aud the blame of ill-success will not rest on them, I know that sincere philanthropy is earnest for the immediate realization of its remotest aims; but time is always an element in re form. It is one of tbe greatest acts on re cord to have brought four millions of people into freedom. The career of free industry must be fairly opened to them; aud then their lulure prosperity and condition must, after all. rest maiulv on themselves. If they fail, and so perish away, let us be careful tlmt the failure shall not be attributable to any denial of justice. Iu all that relates to the destiny of the freedmau, we need not to lie too anxious to read tbe lulure; many in cidents which, from a speculative point of view, might raise alarm, will quietly settle themselves. Now that slavery is at au end, or near its end, the greatest of its evil, in the point of view of public economy, becomes more aud more apparent Slavery was esscutiallv a monopoly of labor, and as sucb locked tbe States where it prevailed agaiust the incom ing of free industry. Where labor was the property of the capitalist, the white man was excluded from employment, or had but the second be9t chance of finding K; aud the foreign emigrant turned away from the re gion where his condition would lie so preca rious. With the destruction of the mono poly, free labor will hasten from all part 9 of the civilized world to assist in de veloping various snd immeasurable re sources which have hitherto lain dor - maut. The eight or nine States nearest tbo Gulf of Mexico have a soil of exuberant fer tility, a climate friendly to long life, and can sustain a denser population tbau is found ns yet in any part ot our country. And tbe fu ture influx of population to them will be mainly from the North, or from the most cul tivated nations of Europe. From the suffer ings that have attended them luring our late struggle, let us look away to the future, which is sure to be laden for them with greater prosperity than lias ever before been known. Tne removal of the monopoly of slave labor is a pledge tbat those regions will be peopled by a numerous and enterprising population, which will vie with auy in the Union iu compactness, inventive genius, wealth and industry. Our Government springs from, and was made for, the people—not the people for the Government. To them it owes allegiance; from them it must derive its courage, strength and wisdom. But, while the Government is thus bound to defer lo the people, irom whom it derives its existence, it should, lrom the very cousideraliou ot its origin, bo strong in its power of resistance to the establish ment of inequalities. Monopolies, perpetui ties, aud class legislation, are contrary to the genius of free government, and ought not to be allowed. Here, there is no room for fa vored classes or monopolies; tbe principle of our Government is that of equal laws aud freedom of industry. Wherever monopoly attains a foothold, it is sure to be a source of dauger, discord and trouble. We shall but fulfil our duties as legislators by accord ing “equal and exact justice to all men," special privileges to none. The Government is subordinate to the people; but, as the agent aud representative of tbe people, it must be held superior to monopolies, which, iu them selves, ought never lo be granted, and which, where they exist, must be subordiuate aud yield to the Government. The Constitution confers on Congress tbe right to regulate commerce among the seve ral States, it is of the first necessity, for the maintenance of the Union, ttiat that com merce should be free ana unobstructed. No Stale can be justified in any device lo tax the transit of I ravel aud commerce belweeu the States. The position of many States is such that, if they were allowed to take advantage of it for purposes of local revenue, the com merce between States might be injuriously burdened, or even virtually prohibited. It is best, while the country is still young, and while the tendency lo dangerous monopolies ot this kind is still feeble, to use the power of Congress so as to prevent any selfish im pediment lo the free circulation of uien and merchandise. A tux on travel and merchan dise, in their transit, constitutes one of the worst forms of mouopoly, aud the evil is in creased it coupled with a denial of the choice of route. When the vast exteut of. our couutry is considered, it is plain that every obstacle lo tue tree circulation of commerce between tbe States ought to bo sternly guard ed against by appropriate legislation, within tbe limits ot the Constitution. The report of the Secretary of the Interior explains the condition ol the publio lands, the transactions of the Patent Office and the Pension Bureau, the management of our In dian Affairs, the progress made in the con struction of the Pacific Railroad, and fur nishes information in reference to matters of local interest in the District of Columbia. It also presents evidence of the successful ope ration of the Homestead Act, under the pro visions of which 1,130,553 acres of tile pub lic lands were entered during the fiscal year —more than one-fourth of the whole number of acres sold or otherwise disposed of during that period. It is estimated that the receipts derived frotq this source are sufficient to cover the expenses incident to the survey and disposal of the lands entered under this Act, and that payments in cash to the extent of from forty to fifty per cent, will be made by settlers, who may thus at any time acquire title before the expiration ot the period at which it would otherwise vest. The home stead policy was established only after long and earnest resistance; experience proves ils wisdom The lands, iu the hands of in dustrious settlers, whose labor creates wealth aud contributes to the public resources, are worth more to the United States than if they had been reserved 83 a solitude ror future purchasers. The lamentable events of the last four years, aud tbe sacrifices made by the gallant men ot our Army, and Navy, have swelled the records of the Pension Bureau to an un precedented extent. On the 30th day of June last, the total number of pensioners was 85,980, requiring tor their annual pay, exclusive of expenses, the sum of $8,033,445. The number of applications that have been allowed since that day will require a large increase of this amount for the nex. liscal year. The means for the payment of the stipends due, under existing laws, to our disabled soldiers aud sailors, aud to the fam ilies of such as have perished in tbe service of the country, will uo doubt lie cheerfully and promptly granted. A grateful people will uol hesitate to suction any measures having for their object the rebel ol soldiers mill Hand nml families made fatherless in the ellorts to preserve our national exis tence. Tho report of the Postmaster General pre sents an encouraging exhibit of the opera lions of the Post Ollieo Department during the year. Thu revenues of ihe past year from the loyal Mate* alone exceeded tile maximum animal receipt* from all the Mates previous lo thu rebellion, in ihu sum ot $11,038,1191 , and llie normal avsiagu in crease of revenue dm lug the last lour yosrs, compared with thu ruvouuas of thu lour yeats Immediately preceding u,„ rebellion, tH*M,N4I. Tlie rsvuniius of the last fiscal year amounted lo fU.AAn.ina, au*l ihs es jsudllures to sia,i,9t, /ys, leaving a surplus of ieo*,i|Ms over uxpumliturus *<i ftfelifdo, Progress has bonn made In restoring ihu is*s isl aul Vice 111 tltuff luthsru Htalcs Thu views pics* oi*>il by Ihu Fust Msslvi Genera! agnt ist tbe policy |of guiding subsidies to *m* su Hull sicamshlp Hums u|s,u ustafihshi*i routes, anil iu Isvor of i oittiuuiitg tbu prssoot ays turn, which I bolls the u*oup*es*Ooo lor •suae a«i v Ice to tha pottage cal megs, are i ecu,ended Ut ths easeful issuahtsuftou us I'wMISM M appears, floor Isis (spurt ul Ihs dsns t&ry of the Navy, that while, at the com mencement of the present year, there were in commission 530 vessels of all classes and descriptions, Hrmcd with 3,000 guns and rnauned by 51,000 men, the number of ves sels at present in commission is 117, with 830 guns and 12,126 men. By this prompt reduction of the naval forces the expenses of the Government have been largely diminish ed, aud a number of vessels, purchased lor naval purposes from the merebaut marine, have been returned to the peaceful pursuits ol commerce. Since tbe suppression of ac tive hostilities our foreigu squadrons have been re-established, and consist of vessels much more efficient than those employed on similar service previous to tbe rcbelliou. — Tbe suggestiou for the enlargement of the navy-yards, and especially for the establish inent of one in iresli water for Iron-clad ves sels, is deserving of consideration, as is also the recomnieudation for a different locutiou and more ample grouuds foi the Naval Acad emy. In the report of the Secretary of War, a general summary is yven of the military campaigns ot 1864 and 1860, ending iu the suppression of armed resistance to the na tional authority iu the iusurgent States. The operatious of the general administrative Bu reaus of the War Department during the past year are detailed, and an estimate made ol the appropriations that will lie required for military purposes iu the fiscal year com mencing the 30th day of June, 18G6. The national military force on tbe Ist of May, 1865, numbered 1,000,516 men. It is pro posed to reduce the military establishment to a peace footing, comprehending fifty thou sand troops of all arms, organized so as to admit of an enlargement by filling up the ranks to eighty-two thousand six hundred, it the circustances of the couutry should re quire au augmentation of the army. The vol unteer force has already been reduced by tbe discharge lrom service of over eight hundred thousand troops, and tbe Depart ment is proceeding rapidly iu tbe work of further reduction. The war estimates are reduced from $515,210,131 to $33,814,161, which amount, iu the opiniou of the Department, is adequate for a peace establishment. The measures of retrench ment in each Bureau and branch of the aer serviee exhibit a diligent economy worthy of commendation. Kcefcreuce is also made in the report lo the necessity of providing for a uniform militia system, and to the propriety ot making suitable provision for wounded and disabled officers and soldiers. The revenue system ol the country is a sub ject of vital interest to its honor and pros perity, and should command the ernest con sideration of CoDgress. The Secretary of tbe Treasury will lay before you a full and de tailed report ot the receipts and disburse ments of tbe last fiscal year, ot the first quar ter ot the present fiscal year, of the probable receipts and expenditures for the other three quarters, and the estimates for the year fol lowing the 30th of June, 1866. I might con tent uiyßef with a refereuce to that report, in which you will find all the information re quired for your deliberations aud decision.— But the paramount importance of the subject so presses itself on my mind, tbat I' cannot but lay before you my views of tbe measures which are required for the good character, and, I might also say, for the existence of this people. The life of a republic lies cer tainly in the energy, virtue, and intelligence ol its citizens ; but it is equally true that a good revenue system is the life of an organiz ed government. I meet you at a time when the nation has voluntarily burdened itself with a debt unprecedented in our annals.— \ast as is its amount, it fades away into nothing when compared with the countless blessings that will be conferred upon our country sud upon man by the preservation of the nation's life. Now, on tbe first occasion ol the meeting of Congress since the return of peace, it is of the utmost importance to inaugurate a just policy, which shall at oneft be put iu motion, and which shall commend itself to those who come after us for its con tinuance. We must aim at nothing less than the complete effecement of the financial evils that necessarily followed a state of civil war W e must endeavor to apply the earliest remedy to the deranged state of the currency aud not shrink from devising a policy which, without being oppressive to the people, shall immediately begin to effect a reduction of the debt, and, if persisted in, discharge it fully within a definitely fixed number ot years. It is our first duty to prepare in earnest for our recovery for ihe ever-increasing evils of an irredeemable currency, without a sud den revulsion, and yet without untimely pro crastination. For that end, we. must, each in our respective positions, prepare the way. I hold it the duty of the Executive to insist upon frugality in tbe expenditures ; aud a sparing economy is itself a great national re source. Os the banks to which authority has been given to issue notes secured by bonds •of the United States, we may require the greatest moderation and prudence, and the law must tie rigidly enforced when its limits are exceeded. We may, each one of us, coun sel our active and enterprising countrymen to be constantly on their guard, to liquidate debts contracted in a paper currency, and, by conducting business as nearly as possible on a system of cash payments or short cred its, to hold themselves prepared to return to the standard of gold and silver. To aid our fellow-citizens in the prudent management of their monetary affairs, the duty devolves on us to diminish by law the amount of paper money now iu circulation. Five years ago the bank note circulation of the country amounted to not much more than two hun dred millions ; now tbe circulation, bank and national, exceeds seven hundred millions.— The simple statement ol the fact recom mends more strongly than any words of mine could do, the necessity of our restraining this expansion. Ttie gradual reduction of the currency is the only measure that can save the business of the country lrom disastrous calamities ; and this can be' almost imper ceptibly accomplished by gradually funding tbe national circulation in securities that may bojnade redeemable in the pleasure of the Government. f Our debt is doubly secure—first in tbe ac tual wealth and still greater undeveloped resources of the country; and next in the character of our institutions. Tho most in telligent observers among political econo mists have not failed to remark, that the public debt of a country is sale in proportion as Its people are free; that tlie debt of a re public is the safest of all. Our history con firms and establishes tbe theory, and is, l firmly believe, destined to give it a still more signal illustration. The secret of this supe riority springs not merely from tbe lact Hist in a republic tlie national obligations are dis tributed more widely through countless numbers in all classes of society; it has its root iu the character of our laws. Here all then contribute to the public welfare, nml bear their fair share of tint public burdens. During the war. under thu impulses of pa triotism, thu men of the great body of the people, without regard to their own com parative waul of wealth, tbroogud to our armies aud Itllsd our fleets of war, ami held themselves ready lo olfer their lives for tbe public good Now, iu tbulr turu, the prop erly ami Income of the country should bear llielr Just proportion of Ihe burden of laxs thru, while iu our Impost system, ll,rough means of whit Ir lucres**,*! vitality is lucldsu telly Imparled lo all the tuilusirtai interests ol lire nation the duties should be so at lusted as Ut lali most heavily no arih lus of luxury, leaving Utu usuesssiUs ol life as frv# from laxatlon as tbs absolute wants of ths GovslMlueul, Si**uomnadly sdinmislsred, wifi justify, No favored < lass ibouid demand freedom from asssssmsnt, mi fhs lass* should ha so tlisii flat fad M out lo lali uuduly uu the pour, hut rather on the ax* amulafad wealth of thu country H v should berk at thejnational debt just as it is—not as a na tional blessing; but as & heavy burden on the industry of the country, to be discharged without unnecessary delay. It is estimated by the Secretary of the Treasury that the expenditures for the fiscal year ending the 30th of June, 186(1, will ex ceed the rcceiptßsll2,l94,!t47. It is gratify ing, however, to state that it is also estima ted that the revenue for the year ending the 30th ot June, 1867, will exceed the expendi tures in the sum of $111,682,818. This amount, or so much as may be deemed suf ficient for tbe purpose, may be applied to tbe reduction of the public debt, which, ou the 31st day of October, 1865, was $2,740,854,- 750. Every reduction will diminish the to tal amount ol iuterest to be paid, and so en large the means of still further reductions, until the whole shall bo liquidated; and this, as will be seen from the estimates of the Secretary of the Treasury, may be accom plished by annual payments even witbin a period not exceeding thirty years. I have faith that we shall do all this within a rea sonable time; that, as we have amazed the world by the suppression of a civil war which was thought lo be beyond the control ot any Government,so we shall equally show the superiority of our institutions by the prompt and faithful discharge of our national obligations. The Department of Agriculture, under its present direction, is accomplishing much in developing and utilizing the vast agricultural capabilities of the country, and for informa tion respecting tbe details of its management, reference is made to the annual report of the Commissioner. I have dwelt thus fully on our domestic affairs because of their transcendent impor- tance. Under any circumstances, our great extent of territory and variety of climate, producing almost every thing that is neces sary for the wants, and even the comforts of man, make us singularly independent of the varying policy of foreign Pbwers, and pro tect us against every temptation to “entang ling alliances," while at the present moment the re-establishment of harmony, and the strength that ernes from harmony, will be our best security agaiust “nations who feel power and forget right." For myself, it has been and will he my constant aim to promote peace aud amity with all foreign nations aud Powers; and I have every reason to believe that they all, without exception, are anima ted by the same disposition. Our relations with the Emperor of China, so recent in their origin, are most friendly. Our com merce with his dominions ii receiviug new developments; and it is very pleasing to find tbat the Government of that gre it Empire manifests satifuction with our poli cy, and reposes just confidence in the fairness which marks our intercourse.— The unbroken barmonyiietweeu the United Slates and the Emperor of Russia is receiv ing anew support from an enterprise de signed to carry telegraphic lines across the continent of Asia, through bis dominions, aud so to connect us with all Europe by a new channel of intercourse. Our commerce With South America is about to receive en couragement by a direct liue of mail steam ships to tbe risiug Empire of Brazil. The distinguished party of memos science who have recently left our couutry to make a sci entific exploration of the natural history and rivers and mountain ranges of that region, have received from the Emperor that gener ous welcome which was to have been expect ed from his constant friendship for the United Slates, and bis well known zeal in promoting the advancement of knowledge. A hope is entertained tbat our commerce with the rich and populous countries that border the Medi terranean Sea may be largely increased. No thing will be wanting, oil the part oi this Governmeut to extend the protection of our flag over the enterprise ot our fellow citizens. We receive from the Powers in that region assurances of good will; and it is worthy of note that a special envoy has brought us messages ol condolence on the death of out late Chief Magistrate from the Bey oi Tunis, whose rule includes the old Jomiuions of Carthage, on the African coast. Our domestic coutcsl, now happily ended, lias left some traces iu our relations with one at least of the great maritime Powers. Ttie formal accordance of belligerent rights to the insurgent States was unprecedented, aud has not been justified by the issue But in the systems of neutrality pursued by the Powers which made that concession, there was a murked difference. The materials of war for the insurgent States were furnished, in a great measure, from the workshops of Great Britain; and British ships, manned by British subjects, and prepared for receiving British armaments, sallied from the ports 01 Great Britaiu to make war ou American commerce, under the shelter of a commission from the iusurgent States. These ships, hav ing once escaped from British ports, ever af terwards entered them iu every part of the world, to refit, anchso to renew their depre dations. The consequences of this conduct were most disastrous to the States then in rebellion, increasing their desolation and misery by tbe prolongation of our civil con test. It had, moreover, the effect, to a great extent 10 drive the American flag from the sea, and to transfer much of our shipping aud our commerce to the very Power whose subjects find created the necessity for such a change. These events took place before I was called to the Administration of the Gov enrment. The sincere desire for peace by which I am animated led me to approve the proposal, already made, to submit the ques tions which bad thus arisen betweeu the countries to arbitration. These questions are of such moment that they must have com- manded the attention of the great Powers, aud are so interwoven with* the pence aud interests of every one of them as to have en sured an impartial decision. I regret to in form you that Great Britain declined the ar- but, on the other band, invited us to the formation of a joint commission to settle mutual claims between the two coun tries, fromwhich those for the depredations before mentioned should be excluded. Tbe proposition, in tbat very unsatisfactory foi m, Las been declined. The United Mates did not present the sub ject ns an impeachment of the good faith of a Power which was professing tlie most friendly dispositions, but as involving ques tions of public law, of which the settlement is essential to the peace of nations; and, though pecuniary reparation to their injured citizens would liavo followed iucidenially on a decision nguinst Great Britain, such com pensation was not their primary object. Tuey had a higher motive, and it was in the interests of peace and justice to cstuhlish im portant principles of international law. Tlie correspondence will ho placed bolbro you. Tho ground on which the British Minister rests his justification is, substantially, that the municipal law of a nation, ami the domestic interpretations of tlml law, are tlie nieisuru of iU duty us a neutral ; and I reel bound to declare luy opinion, before you ami before Ihu world, tuat thu justification cannot ho sustained before thu tribunal of iinliont. At tha samu time 1 do uot advise to auy |ireseiit siu-uipi at redress by sets of leglxjathm. For tha future, frluudship beftvecu tho two couii- Itiss must rust ou thu basis of mutual justiua From thu moment or tha establishment of our liso t'orislliuibm, tha clvlll/.ed world has Isom convulsed by revolution* |„ tfe, lutei asla of democracy or ol monarchy i hut Uirougb all thosa revolutions the l tilted umres havu wisely and Ihmly refits*! l orn# oinpogaudtsis of rupuldl* aulsm It is tbs only govsrumsut suited to out annditfou, hut wo hare never sought to imi KMMI il UU •y**** •*ut»uhav*aouaisiaotl) followml lbs auvuig flf Waattlugiou to **• *«mm. ml a *<oly hy the turelul pr*as(vstiou aud p*a*i*ai ore of tha Measles Ihilug all the defer veubry Cnod Ilm p* lb y of Korupuan Powers sod of l I ultmf Metre has, flu the wb* t«, Into harmonious. Twice, indeed, rumors of the invasion of some parts of America, in tbe in terest of monarchy, have prevailed ; twice my predecessors have had occasion to an nounce the views of this nation in respect to such interference. On both occasions tbe remonstrance ot the United States was respected, from a deep conviction, on the part of European Governments, that the system of non-interfeience and mutual absti nence from propagaudism wag the true rule for the two hemispheres. Since those times we have advanced in wealth and power; but we retain the same purpose to leave the na tions ot Europe to choose tbeir own dynas ties aud form their own systems of govern ment. This consistent moderation may justly demand a corresponding moderation. We should regard it as a great calamity to our selves, to the cause of good government, and to the peace ot the worid, should any Euro pean Power challenge the American people, as it were, to the defence of republicanism against foreign interference. We cannot foresee, and are unwilling to consider what opportunities might present themselves, what combinations might offer to protect burselves against designs inimical to our form oi government. The United States desire to act in the future as they have ever acted heretofore; they will never be driven from that course but by the aggression of Euro pean Powers; and we rely on the wisdom and justice ot those Powers to respect the system of non-interference which has so long been sanctioned by time, and wbicb, by its good results, bas approved itself to both con tinents. Thu correspondence between tbe United States and France, in reference to questions which have become subjects of discussion between the two Governments, will, at a proper time, be laid before Congress. When, on the organization of our Govern ment, under the Constitution, the President ot the Uhited States delivereil his inaugural address lo the two Houses of Congress, he said to them, and through them to the coun try and lo mankind, that “the preservation ot the sacred fire of liberty and the destiny of the republican model of government are just ly considered as deeply, perhaps as finally staked on the experiment intrusted to the American people.” Aud the House of Rep resentatives answered Washington by the voice of Madison : “VVe adore the invisible hand which has led tbe American people througli so many difficulties, to cherish a couscious responsibility for the destiny of republican liberty.” More than seventy-six years have glided away since these words were spoken ; the United States have passed through severer trials than were foreseen ; and now, at this new epoch in our existence as one nation, with our Union purified by sorrow, and strengthened by conflict, and established by the virtue of the people, the grcalucss of the occasion invites us once more to repeat, with solemnity, tbe pledges ofour fathers to hold ourselves answerable before our fellow-men for the success of tbe republican form of government. Experience has proved its sufficiency in peace and in war ; it lias vindicated its authority through dangers, aud afflictions, and sudden and ter rible emergencies, which would have crushed any system tlmt had been less firmly fixed in the heart of the people. At the inauguration of Washington the foreign relations of the country were few, and its trade was repress ed by hostile regulations, now ail the civilized nations of the globe wel come our commerce, and tbeir Governments pitiless towards us amity. Then our coun try felt ils way hesitating along an untried path, with States so little bound together by rapid means of communication as to be hard ly known to one another, and with historic traditions extending over eveiy few years ; now intercourse betweeu the States is swift aud intimate; the experience of centuries bas been crowded into a few generations, and lias created an iulcnsc, indestructible nation ality. Then our jurisdiction did not reach beyond the inconvenient boundaries of the territory which had achieved independence ; noiv, thiough sessions of lauds, first coloniz ed by Spain and France, the country has ac quired a complex character, and bas for its natural limits the chain of Lakes, the Gulf oi Mexico, aud on the east and the west tbe two great oceans. Other nations were wasted by civil wars for ages be fore they could establish for them selves the necessary degree of unity ; the latent convictiou that onr form of govern ment is the best ever known to the world, hai enabled us to emerge from civil war within tour years, with a complete vindica- tion of the constitutional authority ot the General Government, and with our local liberties aud Slate Institutions unimpaired. The throngs of emigrants that crowd to our shores are witnesses of the confidence of all peoples in our permanence. Here is the great land of true labor, where industry is blessed with unexampled rewards, and the bread of the workingman is sweetened by the consciousness that the cause of the coun try “is his own cause, his own safety, his own dignity.” Here every one enjoys the free use of his faculties and the choice of ac tivity as a natural right. Here, under the combined influence ot a fiuitful soil, genial climes, and happy institutions, population lias increased fittcen fold within a century. Here, through the easy development of boundless resources, wealth has increas ed with two-told greater rapidity than numbers, so that we have become se cure against the financial vicissitudes of other countries, and, alike in business and in opinion, are self-centered and truly independent. Here more and more care is given to provide education for every ono born on our soil. Here religion, released from political connection with the civil gov ernment, refuses to subserve the craft of statesmen, and becomes, in its independence the spiritual life of the people. Here tolera tion is extended to every opinion, in tbe quiet certainty that truth needs only a fair held to secure the victory. Here the human mind goes forth unshackled in the pur suit ot science, to collect stores of knowledge and acquire an ever-increasing mastery over thu forces of nature. Here the national do main is offered and held in millions of sepa rate freeholds, so that our beyond the occupants of any other part cf the earth, constitute in reality a people. Here exists tlie democratic form of govern ment; ami that lornt of government, by the confession of European statesmen, “gives a power of which no other form is capable, be cause it incorporates every man with the State, and arouses everyting that belongs to the soul.” Where, in past history, does a parallel ex ist to the public happiness which is within the reach of tho people of the United States'/ Where, In any part of the globe, can institu tions he found so suited to their habits, or so entitled lo their love as their own free Con stitution '< Every oue of them, then, in whatever part of tho luud he has ins home', must wish its perpetuity Who of them will uot uow acknowledge, in the words of Wash ington, that "every, step by which tho peoplo ol the United Mates have advanced to the characloi of an indepemiaul nation, seems to have bi t'ii distinguished by oome token of I’rovhleutlai agency r Who will not join with uie in "<u prayer, that Uw invisible hand which lias led ue through the clouds that gloomed eioutid our path, will uo guidu ' u« on went to a perfect restoration of (rater ua! a Auction, that we of tbia day may he abiu I** irausmit oar great iuhsriiaiicu, *«t (kata Uoveiutuwnte Iu all tbsir rights, **/thu Uuim ral Giivuiuiuunt iu its wit*tie * *msiueiiou*| visor, In our posterity, and to theirs thiouah . ouutfess guaeretlumfr , flhlilikW JuUNMiN. W asoisotos, Pm 4. ima, -Mode s coast la How viethietothe ashed §/r