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j. H. J5STILL, PROPRIETOR.
SAVANNAH, THURSDAY, DECEMBER 10, 1868.
ESTABLISHED 1850.
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H TELEGRAPH
— TO
n n: morjvuvg ivews.
president’s Message.
Washington, December 9.
^tc-eilian* of the Senate and House of
ftpresentaliew :
_ Cpou tlie re-assembling of Congress, it
| rain becomes my duty to call your atteution
If, the state of the Union, and to its continued
i.'.raanized condition under the various laws
tb have been passed upon the subject of
ostniction. It maybe safely assumed,
,a adorn iu the government of States, that
c. greatest wrongs inflicted upon a people
, : ansa! by unjust and arbitraiy legislation,
bv tbe unrelenting decrees of despotic
-jets, and that the timely revocation of in-
gags anil oppressive measures is the greatest
j that can be conferred upon a nation.
t legislator or ruler who has the wisdom
imagnanimity to retrace his steps when
.tim-ed of error, will sooner or later be
aided with the respect and gratitude of
. intelligent and patriotic people. Our own
asry, although embracing a period less
a century, affords abundant proof that
at.% not all of our domestic troublee, are
■fly traceable to violations of the organic
end excessive legislation. The most stri-
illustrations of this fact are fur-
lii-ied by the enactments of the past
iiee years upon the question of
•emstrnction. After a fair trial they have
Irkaatialiy failed and proved pernicious in
ji-r results, and there seems to be no good
_s,n why they should longer remain upon
statute books. States to which the Con
tention guarantees a republican form of
. .ament, have been reduced to military
pendencies, in* each of which the people
_> been made subject to the arbitrary will
tilie Commanding General, although the
ikitntiou requires that each State shall be
■•resented in Congress. Virginia, Missis-
. 4 and Texas are yet excluded from the
Houses, and contrary to the express pro
mts of that instrument, and were de-
-1 participation in the lecent election
:» President and Vice-President of the
tiled States. The attempt to place the
«e population under the domination of
ta,ns of color in the South has impaired,
lot destroyed, the kindly relations that
At previously existed between them, and
ml distrust has engendered a feeling of
losity which, tending in some instances
ollisiou and bloodshed, has prevented
co-operation.between the two races so
lia! "to the success of industrial enter
ic the Southern States. Nor have the
itants of those States alone suffered
tbe disturbed condition of affairs grow-
oat of these Congressional enactments,
(entire Union has been agitated by grave
reheusions of troubles which might again
-be the peace of the nation. Its in-
sts have been injuriously affected by
~ derangement of business and labor, and
■ consequent want of prosperity throughout
lit portion of the country. The Federal
institution—the Magna Cbarta of American
gilts—under whose wise and salutary pro
mos we have successfully conducted all
•«t domestic and foreign affairs, sustained
®selresjm peace and in war, and become a
-at nation among the powers of the earth,
Mst assuredly be now adequate to the settle-
-tat of questions growing out of the civil
nr, waged^alone for its vindication. This
pat fact is made most manifest by the con-
fcion nf the country when Congress as-
in the month of December,
Civil strife had ceased; the
?wt of rebellion had spent its entire
■, in the Southern Slates the people had
mmed into national life, and throughout
« whole country a healthy re-action inpub-
sentiment had taken place. By the appli
cation of the simple, yet effective, provisions
|- tbe Constitution, the Executive Depart-
Pjrti with the voluntary aid of the States,
1 brought the work of reconstruction as
1 completion as was within the scope of
5 authority, and the nation was encouraged
J lt Ae prospect of an early and satisfactory
I Mjsstnieiit of all its difficulties. Congress,
1 fwever, intervened, and refusing to perfect
work so nearly consummated, declined to
members from tbe imrepresentedSt&tes (
vtipted a series of measures which arrested
■ progress of restoration, frustrated all that
I been so successfully accomplished, and
'! three hears of agitation and strife has
j “a the country farther from the attainment
I uiiiou aud fraternal feeling than at the in-
I c 'ftion of the Congressional plan of recon-
| faction. It needs no argument to show
I ®*t legislation, which has produced such
—nefbi consequences, should be, abrogated
ir else made to conform to the genuine prin-
I 1 Pbs of Republican government,
i tinder the influence of party passion and
I sectional prejudices, other acts have been
7 not warranted by the Consitution.
Congress has already been made familiar
?'n 111 y views respecting the “tenure of of-
» k ^. " Experience has proved that its
l 'peal is demanded by tbe beat interests of
th n antry ’ an< l Chat while it remains in force,
,“ e President cannot enjoin that rigid ac-
onntability of public offices so essential to
n honest and efficient execution of the lows.
Its
revocation would enable the Executive
“epartmeut to exercise the power of appoint
ment and removal in accordance with the ori-
Sinal design of the Federal Constitution.
' be act of March 2d, 1867, making appro
priations for the support of'the army for the
■'eat ending June 36th, 1868, and lor other
Jnrposes, contains provisions which inter-
ete with the President's coustititutionalfonc-
»°?j aB commander-in-chief of the army,
na denies to the States of die Union the right
•“Protect themselves by means of their own
>htia. These provisions should be at once
nnnfled, for while the first might, in times of
i. tfcat emergency, seriously embarrass the
ticeutive in efforts to employ and direet the
®mnon strength of the nation for its pro-
ction and preservation, the other is con-
uuy to the express declaration of the Con-
“tation, that “a well regulated militia being
eceasary to the security of a free State, the
the people to keep and bear arms,
sail not be infringed.” Iris believed- that
repeal of all such laws would be accepted
Au!S rican people as, at least, a partial
ctnm to the fundamental principles of the
government, and mi indication that hereafter
w ® Constitution is to be made the nation’s safe
and unerring guide. They can be productive
of no permanent benefit to the country, and
should not be permitted to 6tand as so many
monuments of the deficient wisdom which
has characterized our recent legislation. The
condition of our finances demands the early
and earnest consideration of Congress. Com
pared with the growth of our population, the
public expenditures have reached an amount
unprecedented in our history. The popula
tion of the United States in 1790 was nearly
four millions of people. Increasing each de
cade about thirty-three per cent., it reached
in 1860, thirty-one millions, an increase of
seven hundred per cent, on the population in
1790. In 1869 it is estimated that it will
reach thirty-eight millions, or an in
crease of eight hundred and sixty-eight per
cent, in seventy-nine years. The annual
expenditures of the Federal Government
in 1791 were four millions two hun
dred thousand dollars; in 1820, eighteen
millions two hundred thousand dollars. In
1S50, forty-one millious; in 1860, sixty-three
millions; in 1SC5, nearly thirteen hundred
millions; aud iu 1869, it is estimated by the
Secretary of the Treasury in his last annual
report, that they will be three hundred and
seventy-two millions. By comparing the
public disbursements of 1869, as estimated
with those of 1791, it will be seen that the
increase of expenditures, since the beginning
of the Government, has been eight thousand
six hundred and eighteen per centum, while
the increase of the population for the same
period was only eight hundred and sixty-
eight per centum. Again, the expenses of
tlie Government in 1860, the year of peace
immediately preceding the war, were only
sixty-three millions, while in 1869, the
year of peace, three years after the war, it
is estimated they will be three bundled
and seventy-two millions, an increase of four
hundred aud eighty-nine per centum, while
the increase of population was only twenty-
one per centum for the same period. These
statistiesfurther show that in 1791 the annual
national expenses, compared with the popu
lation, were little more than one dollar per
capita, and in I860 but two dollars per capita,
while in 1869 they will reach the extravagant
sum of nine dollars and seventy-eight cents
per capita. It will be observed that all of
these statements refer to and exhibit the dis
bursements of peace periods. It may, there
fore, be of interest to compare the expendi
tures of the three war periods—the war with
Great Britain, the Mexican war,.and the war
of the rebellion. Iu 1814, the annual ex
penses incident to the war of 1812 reached
their highest amount, about thirty-one
millions, while our population slightly
exceeded eight millions, showing an
expenditure of only thiee dollars and eighty
cents per capita. In 1847 the expenditures
growing ont of the war with Mexico reached
fifty-five millions, and the population about
twenty-one millions, giving only two dollars
and sixty cents per capita for the jrar ex
penses of that year. Iu 1865, the expendi
tures called for by the rebellion reached the
vast amount of twelve hundred and ninety
millions, which, compared with a population
of thirty-four millions, gives thirty-eight dol
lars and twenty cents per capita. From the
fourth day of Starch, 1789, to the thirtieth of
June, 1861, the entire expenditures of the
Government were seventeen hundred mil
lions of dollars. During that period we
were engaged in wars with Great Britain
and Mexico, and were involved in hos
tilities with powerful Indian tribes.
Louisiana was purchased from France
at a cost of fifteen millions of dollars; Flm-ida
was ceded to us by Spain for five millions;
California was acquired from Mexico for fif
teen millions, and the Territory of New
Mexico was obtained from Texas for ten mil
lions. Early in 1861 the war of tbe rebellion
commenced, and from the 1st of July of that
year to the 30th of Juno, 1865, the public ex
penditure reached the enormous aggregate of
thirty-three hundred millions. Three years
of peace have intervened, and during that
time the disbursements of the Government
have successively' been five hundred and
twenty millions, three hundred aud forty-six
millions, and three hundred and ninety-three
millions. Adding to these amounts three
hundred and seventy-two millions, estimated
as necessary for the fiscal year ending the 30th
of June, 1869, we obtain a total expenditure
of sixteen hundred millions of dollars during
the four years immediately succeeding the
war, or, nearly as much as was expended dur
ing the seventy-two years that preceded the
rebellion and embraced the extraordinary
expenditures already named. These start
ling facts clearly illustrate the necessity of
retrenchment in all branches of the public
service. Abuses which were tolerated during
the war for the preservation of the nation will
not be endured by the people, now that pro
found peace prevails.
The receipts from Internal Revenues and
Customs have, during the past three years,
gradually diminished, and the continuance of
useless and extravagant expenditures will in
volve us in national bankruptcy, or make in
evitable an increase of taxes, already too on
erous, and in many respects obnoxious, on
account of their inquisitorial character. One
hundred millions annually are expended
for the military force, a large portion of which
is employed "in the execution of lawB both
unnecessary aud unconstitutional. One hun
dred and fifty millions are required each
year to pay the interest on the public debt.
An army of tax gatherers impoverishes the
nation, and public agents placed by Congress,
beyond the control of the Executive, divert
from their legitimate purposes large sums of
money which they collect from the people in
the name of the Government. Judicious
legislation and prudent economy can alone
remedy the defects and avert evils which, if
suffered to exist, cannof fail to diminish
confidence in the people towards these
political institutions. Without proper care,
the small balance which it is estimated will
remain in the Treasury at the close of the
present fiscal year, will not be realized, and
nflaitionnl millions be added to a debt which
is now enumerated by billions. It is shown
by the able and comprehensive report of the
Secretary of the.Treasury, that the receipts
for the fiscal year ending June 3, 1868, were
$405,638,083, and that the expenditures for
the same period were $377,340,28L
in the ^Treasury a surplus of $28,297,998. It
is estimated that the receipts during the pres
ent fiscal year, ending June 30, 1869, will be
$341,392,868, and the expenditurcs S..136,-
152,470, showing a small balance of $5,240,39a
in favor of the Government. For the fiscal
year ending June 30, 1870, it is estimated
that the receipts will amount to S3n7,-
000,000, and the expenditures to $303,-
000,000, leaving an estimated surplus ol
$24,000,000. . ' '
It becomes proper in this connec
tion to make a brief reference to our
public indebtedness which has accu
mulated with such alarming rapichtv and as
sumed such collossal proportions. In 1789,
when the government commenced opeera-
tions under the Federal Constitution, it was
burdened with an indebtedness of seventy-
five millions of dollars created during the
war of the revolution. This amount has been
reduced to forty-five millions of dollars.
When in 1812 war was declared against Great
Britain, the three years struggle that followed
largely increased the national obligations,
and in 1816 they had attained the sum of
one hundred and twenty-seven millions.
Wise and economical legislation however,
enabled the government to pay the entire
amount within a period of twenty years
and the extinguishment of the national
debt filled tbe land with rejoicing, and was
one of the great events of President Jack-
sons admimstration. After its redemption,
a large fund remained in the Treasniy, which
was deposited for safe keeping with the sev-
eral States on condition that it should be re
turned when required bytiie pubbewants.
In 1849, the year after the termination of an
expensive war with Mexico,, we found our
selves involved in a debt of sixty-lonr mil
lions, and this was the amount owed byAh
Government in I860, just prior to ‘be out
break of the rebellion. In the spring of 1861,
our civil war commenced. Each year of its
continuance made an enormous addition to
Itodebt, and when in thespnug of 18b5the
nation successfully emerged from the con
flict, the obligations of the Govemment
bad re&chedthe enormous sum of $2,873,1(92,-
909 dollars. Tbe Secretary of the T^^ry
shows that on the first day of November,
1867, this amount had been reduced to
$2,491,504,450, but at the same time his re
port exhibits an increase during the past year
of $35,625,102; for the debt on the first day
of November last is stated to have been
$2,528,129,552. It is estimated by the Sec
retary that the returns for the past month
will add to our liabilities the further sum of
$11,000,000, making a total increase, during
thirteen months, of forty-six and a half mil
lions. In my message to Congress of Decem
ber 4th, 1865, it was suggested that a policy
should be devised which, without be-
ing oppressive to the people, would at
once begin to effect a reduction of the
debt, and, if persisted in, discharge it
fully within a definite number of years.
The Secretary of the Treasury forcibly recom
mends legislation of this character, and just
ly urges that the longer it is deferred the
more difficult must become its accomplish
ment We should follow the wise precedents
established in 1789 and 1816, and without
further delay, make provisions for the pay
ment of our obligations at as early a period
as may be practicable. The fruits of their
labors should be enjoyed by our citizens
rather than used to build up and sustain
moneyed monopolies in our own and other
lands. Our foreign debt is already computed
by the Secretary of the Treasury at eight
hundred and fifty millions. Citizens of for
eign countries receive interest upon a large
portion of our securities, and American tax
payers are made to contribute large sums
for their support The idea that such a debt
is to become, permanent should be at
all times discarded as involving taxa
tion too heavy t o be borne, and payment
ones in every sixteen years at the present
rate of interest, of an amount equal to tbe
original sum. This vast debt, if permitted
to become permanent and increasing, must
eventually be gathered into the hands of a
few, and enable them to exert a dangerous
and controlling power in the affairs of the
Government. The borrowers would become
servants to the lenders, the lenders the mas
ters of the people.
We now pride ourselves upon having given
freedom to four millions of the colored race.
It will then be our shame that forty millions
of people, by their own toleration
of usurpation and profligacy, have suf
fered themselves to become enslaved,
and merely exchanged slave owners
for new task-masters in the shape of
bond-holders and tax-gatherers. Besides,
permanent debts pertain to monarchical
governments, and, tending to monopolies,
perpetuities and class-legislation, are totally
irreconcilable with free institutions. Intro
duced into our republican system, they would
gradually but surely sap its foundation's, even
tually subvert our governmental fabric, and
erect upon its ruins a moneyed aristocracy.
It is onr sacred duty to transmit unimpaired
to our posterity the blessings of liberty which
were bequeathed to us by the founders of
the republic, and by our example teach
those who ore to follow ns carefully
to avoid the dangers which threaten a free
and independent people.
Various plans have been proposed
for the payment of the public debt,
however they may have varied as to the
time and mode in which it should he redeem
ed. There seems to be a general concurrence
as to the propriety and justness of a reduc
tion iu the present rate of interest. The
Secretary of the Treasury in his report re
commends five per cent.; Congress, in a bill
passed prior to adjournment on the 27th of
July last, agreed upon four and four and a
half per cent, while by many three per cent,
has been held to be an amply sufficient re
turn for the investment. The general im
pression as to the exorbitancy of the existing
state of interest has led to an inquiry in the
public mind respecting the consideration
which the Government has actually received
for its bonds, and the conclusion is becom
ing prevalent that the amount which it ob
tained was, in real money, three or four hun
dred per cent, less than the obligations which
it issued iu return. It cannot be denied
that we are paying an extravagant per
eentage for the use of the money bor
rowed, which was paper currency,
greatly depreciated below the value
of coin. This fact is made apparent when
we consider that the bond holders receive
from the Treasury upon each dollar they
own in Government securities six per cent,
in gold, which is nearly or quite equal to nine
per cent, in currency.- That the bonds are
then converted into capital for the National
Baltics upon which those institutions issued
their circulation, bearing six per cent inter
est, and that they are exempt from taxation
by the Government and the States, and
thereby enhanced two per cent in the hands
of the holders. We thus have an aggregate
of seventeen per cent which may be
received upon each dollar by the own
ers of Government scarifies. A system
that produces such results is justly regarded
as favoring a few at the expense of the many,
and has led to the further enquiry whether
our bondholders, in view of the large profits
which they have enjoyed, would themselves
be averse to a settlement of our indebted
ness upon a plan which would yield them a
fair enumeration, and at the same time he
just to the tax-payers of the nation. Our na
tional credit should be sacredly observed.
But in making provision for our creditors,
we should not forget what is due to the
masses of the people. It may be assumed
that the holders of our securities have al
ready received upon their bonds a larger
amount than their original investment, mea
sured by a gold standard.
Upon this statement of facts it would seem
but just and equitable that the six per cent,
interest now paid by the government should
be applied to the redaction of the principal
in semi-annual instalments, which in fifteen
years and eight months would liquidate the
entire national debt. Six per cent, in gold
would, at present rates, be equal to nine per
cent, in currency, and equivalent to the pay
ment of the debt one and a half time in a
fraction less than seventeen years. This, in
connection with all the other advantages de
rived from their investment, would afford the
public creditors a fair and liberal compensa
tion for the use of their eapital, aud with this
they should be satisfied.
The lessons of the past admonish the lend
er that it is not well to be over anxious in ex
acting from the borrower rigid compliance
with the letter of the law. If provision be
made for the payment of the indebtedness of
the government in the manner suggested, our
nation will rapidly recover its wanted pros
perity. Its interests require that some meas
ure should he taken to relieve the large
amount of capital invested in the securities
of the government It is not now merely un
productive, but in taxation annnally con
sumes one hundred and fifty millions of dol
lars, which would otherwise be used by our
enterprising people in adding to the wealth
of the nation.
Our commerce, which at one time success
fully rivalled that of _the great mari
time powers, has rapidly diminished,
and our industrial interests are in a de
pressed and languishing condition. The
development of our inexhaustible resources
is checked, and the fertile fields of the South
are becoming waste for want of means to till
them. With the release of capital, new life
would be infused into the paralyzed energies
of onr people, and activity and vigor imparted
to every branch of industry. Our people
need encouragement in their efforts to re
cover from the effects of the rebellion and of
injudicious legislation; and it should be the
aim of the Government to stimulate them by
the prospect of an early release from the bur
dens which impede their prosperity. If we
cannot take the burdens from their shoulders,
we should at least manifest a willingness to
help to bear them. .
In referring to the condition of the circula
ting medium, I shall merely reiterate sub
stantially that portion of my last annual
message which relates to that subject. The
proportion which the currency of any country
should bear to the whole value of the annual
produce circulated by its means, is a question
upon which political economists have not
agreed. Nor can it be controlled by legisla
tion, but must be left to the irrevocable laws
which everywhere regulate commerce and
trade. The circulating medium will ever irre
sistibly flow to those points where it is in great.
est demand. The law of demand and sup
ply is as unerring as that which regulates the
tides of the ocean—and indeed currency
like thetides, has its ebbs and flows through
out the commercial world. At the beginning
of the rebellion the bank note circulation of
the country amounted to not much more than
two hundred millions of .dollars; now, the
circulation of national bank notes, and those
known as legal tenders, is nearly seven hun
dred millions. While it is urged by some
that this amount should be increased, others
contend that a decided reduction is abso
lutely essential to the best interests of the
country. In view of these diverse opinions,
it may be well to ascertain the real value of
our paper issues, when compared with a me
tallic or convertible currency for this purpose.
Let us inquire how much gold and silver could
be purchased by the seven hundred millions
of paper money now in circulation; probably
not more that half the amount of the latter,
showing that when our paper currency is
compared with gold and silver, its commer
cial value is Compressed into three hundred
and fifty millions. This striking fact makes
it the obvious duty of the (government, as
early as may be consistent with thf principles
of sound political economy, to take such
measures as will enable the holder of its notes
and those of the national banks to convert
them without loss into specie or its equiva
lent; a reduction of our paper circulating
medium need not necessarily follow. This,
however, would depend upon the law of de
mand and supply. Though it should be
borne in mind that by making legal tender
and bank notes convertible into coin, or its
equivalent, their present specie value in the
hands of their holders would be enhanced
one hundred per cent. Legislation for tbe
accomplishment of a result so desirable is
demanded by the -highest public considera
tions. The Constitution contemplates that
the circulating medium of the country shall
be uniform iu quality and value. At the time
of the formation of that instrument the coun
try had just emerged from the war of the
revolution, and was suffering from the effects
of a redundant and worthless paper curren
cy. The sages of that period were anxious
to protect their posterity from the evils which
they themselve had experienced. Hence, in
providing a circulating medium, they con
ferred upon Congress the power to coin
money and regulate the value thereof, at the
same time prohibiting the States from
making anything but gold and silver a
tender in payment of debts. The anoma
lous condition of onr currency is in striking
contrast with that which was originally
designed. Our circulation now embraces,
first, notes of the National hanks, which are
made receivable for all dues to the Govern
ment, excluding imports, and by all its credi
tors, excepting in payment of interest upon
its bonds aud the securities themselves;
second, legal tender notes issued by the
United States, and which the law requires
shall be received as well iu payment of all
debts between citizens, as of all Government
dues, excepting imports; and, third, gold and
silver coin. By the operation of our present
system of finance, however, the metalie cur
rency, when collected, is reserved only for one
class of Government creditors, who, holding
its bonds, semi-annually receive their interest
in coin from the National treasury. There is
no reason which will be accepted as satisfac
tory by the people, why they who defend ns
on the land and protect us on the sea, the
pensioner upon the gratitude of the nation,
bearing the scars and wounds received while
in its service, the public servants in the va
rious departments of the Government, tbe
farmer who supplies the soldiers of the army
aud the sailors of the navy, the artizan who
toils in the nation’s workshops, or the me
chanics and laborers who build its defences
and construct its foris and vessels of war,
should, in payment of their just and hard
earned dues, receive depreciated paper, while
another class of their countrymen, no more
deserving, are paid in coin of gold and silver.
Equal and exact justice requires that all the
creditors of the Government should be pair!
in a currency possessing a uniforn value. This
can only be accomplished by the restoration
of the currency to the standard established
by the Constitution, and by this means we
would remove a discrimination which may—
if it has not already done so—create a preju
dice that may become deep rooted aud wide
spread, and imperil the national credit. The
feasibility of making our currency correspond
with the Constitutional standard may be seen
by reference to a few facts derived from onr
commercial statistics. The aggregate pro
duct of precious metals in the United States
from 1849 to 1867 amounted to $1,174,000,-
000, while for the same period, the net ex
ports of specie were $741,000,000; this shows
an xeeess ot product over exports $433,000,000*
There are in the Treasury $103,407,985 iu
coin. In circulation in the States
on the Pacific coast about $40,000,000,
and a few millions in the National
and other banks. In all less than
S160,000,000. Taking into considera
tion the specie in the country prior to 1849,
and that produced since 1867, and we have
more than three hundred million dollars not
accounted for by exportation, or by the re
turns of the Treasury, and therefore most
probably remaining in the country. These
are important facts, and show how completely
the inferior currency will supersede the bet
ter, forcing it from circulation among the
masses, and causing it to be exported as a
mere article of trade, to add to the money
capital of foreign lands. They show the ne
cessity of retiring our paper money, that the
return of gold and silver to the avenues of
trade may be invited and a demand created
which will cause the retention at home of at
least so much of the productions of our rich
and inexhaustible gold-bearing fields as may
be sufficient for purposes of circulation. It
is unreasonable to expect a return to a sonnd
currency so long as the Government and
banks, by continuing to issue irredemable
notes, fill tbe channels of circulation with
depreciated paper. Notwithstanding a coin
age by our mints since 1849 of eight hundred
aud seventy four millions of dollars, the peo
ple are now strangers to the currency which
was designed for their use and benefit, and
specimens of the precious onetals bearing
the national device are seldom seen
except when produced to gratify the
interest excited by their novelty. If
depreciated paper is to be continued as
the permanent currency of the country and
all our coin is to become a mere article 'g
trade and speculation to the enhancement in
price of all that is indispensable to the com
fort of the people, it would be wise econ
omy to abolish our mints. Thus saving the
nation the care and expense incident to such
establishments, and let all our precious met
als be exported in bullion. The time has
come, however, when the Government
and National Banks should be required
to take the most efficient steps and
make all necessary arrangements for a
resumption of specie payments.
Let specie payments once be earnestly
inaugurated by the Government and Banks,
and the value of the paper circulation would
directly approximate a specie standard. Spe
cie payments having been resumed by the
Government and Jlanks, all notes or bills of
paper issued by either of a less denomination
than twenty dollars should by law be excluded
from circulation, so that the people may have
the benefit and convenience of a gold and sil
ver currency, which in all their business
transactions "will be uniform in value at home
and abroad. Every man of property or in
dustry—every man who desires to "preserve
what he honestly possesses, or to obtain what
he can honestly earn—has a direct interest in
maintaining a safe circulating medium—such
a medium as shall be real and substantial,
not liable to vibrate with opinions, not sub
ject to be blown up or blown down, by the
breath of speculation, but to be made stable
and secure. A disordered currency is one of
the greatest political evils. It undermines
the virtues necessary for the support of the
social system, and encourages propensities
destructive of its happinfcss. It wars against
industry, frugality and economy, and it fos- '
ters the evil spirits of extravagance and specu
lation. Ithasbeen asserted by one of our most
profound and gifted statesmen, that of all tlie
contrivances for cheating the laboring classes
of mankind none, has been more effectual.
than that which; deludes them with paper i
money. This is the most effectual of inven- '
tions to fertilize the rich man’s fields by the
sweat of the poor man’s brow. Ordinary
tyranny, oppression, excessive taxation, these
hear lightly on the happiness of the mass of
the community, compared with a fraudulent
currency, and the robberies committed by
depreciated paper. Our own history has re
corded for our instruction enough, and more
than enough of the demoralizing tendency,
the injustice and intolerable oppression on
the virtnons and well disposed ol a degraded
paper currency authorized by law, or in any
way countenanced by Government
It is one of the most successful devices in
times of peace or war of expressions or reve
lations to accomplish the transfer of all the
precious metals from the great mass of the
people into the hands of the few, where they
are hoarded in secret places or deposited
under bolts and bars, while the people are
left to endure all the inconveniences, sacri
fices and demoralization resulting from the
use of depreciated and worthless paper.
The Secretary of the Interior gives valuable
information in reference to the interests con
fided to the supervision of his department,
and reviews the operations of the land office,
pension office, patent office and the Indian
Bureau, daring the fiscal year ending June
30th, 1868, 6,655,700 acres of public land
were disposed of. The entire cash re
ceipts of the general land office for the same
period were $1,632,745, being greater by $284,-
883 than the amount realized from the same
sources daring the previous year. The en
tries under the Homestead Law cover 2,328,923
acres, nearly one-fourth of which was taken
under the Act of Jane 21st 1866, whicn
applies only to the States of Alabama,
Mississippi, Louisiana, Arkansas and Florida.
On the 30th of June, 1868, 169,643 names
were borne on the pension rolls, and during
the year ending on that day the total amount
paid fos pensions, including the expenses of
disbursements, was $24,010,982, being $5,-
391,025 greater than that expended for like
purposes during the preceding year. During
the year ending the 30th September last the
expenses of the patent office exceeded the re
ceipts by $171, and including re-issnes and
designs, 14,153 patents were issued. Treaties
with various Indian tribes have been conclud
ed and will be submitted to the Senate for its
constitutional action. I cordially sanction
the stipulations which provide for reserving
lands for the various tribes, where they may
be encouraged to abandon their nomadic
habits and engage in agricultural and indus
trial pursuits. This policy, inaugurated
many years since, has met with signal suc
cess whensoever it has been pursued
in good faith and with becoming lib
erality by the United States. The ne
cessity for extending it as tar as prac
ticable in our relations with the aboriginal
population is greater now than at any pre
ceding period. 47111181 we furnish subsis
tence and instruction to the Indians, and
guarantee the undisturbed enjoyment of their
treaty rights, we should habitually insist upon
the faithful observance of their agreement to
remain within their respective reservations.
This is the only mode by which collisions
with other tribes and with the whites
can be avoided, and the safety of our
frontier settlements secured. The com
panies constructing the railway from
Omaha to Sacramento have been
most energetically engaged in prosecu
ting the work, and it is believed that the line
will be completed before the expiration of the
next fiscal year. The six per cent, bonds
issued to these companies amounted, on the
5th instant, to forty $40,000,357, and addi
tional work had been performed to the extent
of $6,2000,000. The Secretary of the Interior,
in August last, invited my attention to the re
port of a government Director of the Union
Pacific Railroad Company, who had been
specially instructed to examine the location,
constuction and equipment of their road.
I submitted for tbe opinion of the Attorney
General certain questions in regard to the
authority of the Executive which arose upon
his report, and those which had from time to
time been presented by the Commissioners
appointed to inspect each successive section
of the works. After carefully considering
the law of the case. The affirmed right
of the Executive to order, if necessary,
a thorough revision of the entire road.
Commissioners were thereupon appoint
ed to examine this and other lines, and
have recently submitted a statement of their
investigations, of which the report of the
Secretary of the Interior furnishes specific
information.
The report of the Secretary of War contains
information of interest and importance re
specting the several Bureaus of the War De
partment and the- operations of the army.
The strength of our military force, on the
30th September last, was forty-eight thousand
men, and it is computed that by the 1st of
January next, this number will be decreased
to forty-three thousand.
It is the opinion of the Secretary of War
that within the next year a considerable di
minution of the infantry force may be made
without detriment to the interest of the
country, and in view of the great expense at
tending the military peace establishment and
the absolute necessity of retrenchment when
ever it can be applied, it is hoped that Con
gress will sanction the reduction which his
report recommends. 4Vhile in 1860 sixteen
thousand, three hundred men cost the na
tion $16,472,000, the ^um of $65,682,000 is
estimated as necessary for the support of the
army during the fiscal year ending Jane 30th,
1870. The estimates of the War Depart
ment for the last two fiscal years were, for
13C7, $33,814,461, and for 1868, $25,205,669.
The actual expenses during the same periods
were, respectively, $95,224,416, and $123,-
246,648. The estimate submitted in Decem
ber last for the fiscal year ending June 30th,
1869, was $77,124,707. The expenditures
for the first quarter ending the 30th of
September last were $27,219,117, and the
Secretary of the Treasury gives $66,000,000
as the amount which will probably
be required during the remaining three
quarters. If there should be no reduction
of the army, making its aggregate cost for
the .year considerably in excess of $93,-
000,000. The difference between the
estimates and expenditures for the three fiscal
years which have been named, is thus shown
to be 175,545,343 dollars for this single
branch of the public service. The report of
the Secretary of the Navy exhibits the opera
tions of that department and of the Navy
during the year. A considerable reduction
of the force has been effected. There are
forty-two vessels carrying four hundred and
eleven guns In the six squadrons which are
established in different ports of the world,
three of these vessels are returning to the
United States, and four are used as store
ships, leaving the actual cruising force thirty-
five vessels carrying three hundred and fifty-
six guns.
Tfie total number of vessels m the navy is
two hundred and six, mounting seventeen
hundred and forty-three guns. Eighty-one
vessels of every description are in use, armed
with six hundred and ninety-six guns. The
number of enlisted men in the service, in
cluding apprentices, has been reduced to
eight thousand five hundred. An increase of
Navy Yard facilities is recommended as a
measure, which will, in the event of war, be
productive of economy and security.
A more thorough and systematic survey of
the North Pacific Ocean is advised, in view of
our recent acquisition^, our expanding com
merce, and the increasing intercourse between
the Pacific States and Asia.
The Naval Pension Fund, which consists of
a moiety of the avails of prizes captured dur
ing, the war, amounts to .$15,000,000.
Exception is taken to the act of 23d July
last, which reduces the interest-on the fund
loaned to the Government by the Secretary
as trustee, to the three per cent, instead
of six per cent, which was originally
stipulated when the investment was made
An amendment of pension laws is sug
gested, to remedy omissions and defects in
existing enactments. The expenditures of
the Department during the last fiscal year
were $20,120,394, and the estimates for the
coming year amount to $20,993,414.
The Postmaster-General’s Report furnishes
a full and clear exhibit of the operations and
condition of the postal service. The ordi
nary postal revenue for the fiscal year em
June 30, 1868, was S16,292,600, and the toi
expenditures,'embracing all the service for
which special appropriations have been made
by Congress, amounted to $22,730,592, show
ing an excess of expenditures of $6,437,991.
Deducting from the expenditures the sum of
$1,896,525, the amount of appropriatiohs for
ocean steamship and other special service;
the excess of expenditures was S4,541,466. By
using an unexpended'balance in the Treasury
of $3,800,000, the actual sum for which a
special appropriation is required to meet the
deficiency, is $741,466. The causes which
produced this large excess of expenditure
over revenue were the restoration of service in
the late Insnrgant States and the putting into
operation of new service established by acts
of Congress which amounted within the last
two years and a half to about 48,700 miles,
equal to more than one-third of the whole
amount of the service at the close of the_ war.
New postal conventions with Great Britain,
North Germany, Belgium, the Netherlands,
Switzerland and Italy respectively, have been
carried into effect under their provisions.
Important improvements have resulted in re
duced rates of international postage and en
larged mail facilities with European coun-
• tries. The cost of the United States Trans-At
lantic ocean mail service since January 1st,
1868, has been largely lessened under the
operation of these new commissions, a re
duction of over, one half having been effected
under the new arrangements for ocean mail
steamship service, which went into effect on
that date. The attention of Congress is invit
ed to the practical suggestions and recom
mendation made in his report by the Postmas
ter General.
No important question has occurred
during the last year in our accustomed,
cordial and friendly intercourse with Costa
Rica, Guatemala, Honduras, San Salvador,
Prance, Austria, Belgium, Switzerland,
Portagal, tbe Netherlands, Denmark,
Sweden, and Norway, Rome, Greece, Turkey,
Persia, Egypt, Siberia, Morocco, Tripoli,
Tonis, Muscat, Siam, Borneo, and Madagas
car. Cordial relations have also been main
tained with the Argantine and the Oriental
Republics.
The expressed wish of Congress, that our
national good offices might be tendered
to those republics, and also to Brazil and
Paraguay, for bringing to an end tbe calam
itous war which has so long been raging in
the valley of the La Plata, has been assid
uously complied with and kindly acknowl
edged by all the belligerents. That impor
tant negotiation, however, lias thus far
been without resutt- Charles A. Wash-
bum, late United States Minister
to Paraguay having resigned and being de
sirous to return to the United States, the. Ad
miral commanding the South Atlantic Squad
ron was early directed to send a ship of war
to Asuncion, the capital of Paraguay, to re
ceive Mr. Washbnrne and his family and
remove them from a situation which was
represented to be endangered by faction
and foreign war. The Brazilian commander
of the allied invading force refused permission
to the Wasp to pass through the blockading
forces, and that vessel returned to its accus
tomed anchorage. Kemoustrance having
been made against this refusal,it was prompt
ly overruled and the Wasp, therefore,resumed
her errand, received Mr. Washburn and his
family and conveyed them to a safe and con*
venient seaport. Iu the meantime an excited
controversy had arisen between the President
of Paraguay and the late United States
Minister, which it is understood grew
out of his proceeding in giving asylum
in the United States Legation to alleged ene
mies of that republic. This question of the
right to give asylum ’ is one always difficult,
and often productive of great embarrasment.
In States well organized and established,
foreign powers refuse either to concede
or exercise that right except as to persons
actually belonging to the Diplomatic service.
On the other hand, all such powers
insist upon exercising the right of
asylum in States where the law of nations
is not fully acknowledged, respected and
obeyed. The President of Paraguay is un
derstood to have been opposed to Mr. Wash-
bum’s proceedings, the injndicious and very
improbable charge of personal complicity in
insurrection and treason. The corres
pondence, however, has not yet reached the
United States. Mr. Washburn, in connec
tion with this controversy, represents that
the United States citizens attached to the
Legation, were arbitrarily seized at his
side, when leaving tie Capital of Paraguay,"
committed to prison and there subjected to
torture, for tbe purpose of procuring confes
sions of their own criminality, and testimony
to support the President’s allegations against
tbe United States Minister. Mr. McMahon,
the newly appointed minister to Paraguay,
having reached the La Plata, has beeu in
structed to proceed without delay to Asun
cion, there to investigate the whole subject.
The Rear Admiral commanding the United
States South Atlantic squadron has
been directed to attend the new
minister with a proper naval force
to sustain such just demands as the
occasion may require, and ta vindicate the
rights of the United States citizens referred
to, and of any others who may be exposed to
danger in the theatre of war. With these ex
ceptions friendly relations have been maintain
ed between the States and Brazil and Para
guay. Our relations during the past year
with Bolivia, Ecuador, Pern aud Chili have
become especially friendly and cordial. Spain
and tbe Republics of Peru, Bolivia and
Ecuador have expressed their willingness to
accept the mediation of the United States
for terminating the war upon the South Pa
cific coast Chili has not finally declared
upon the question. In the meantime the con
flict has practically exhausted itself. Since
no belligerent or hostile movement has been
made by either party during the last two
years, and there are no indications of a pre
sent purpose to resume hostilities on either
side, Great Britain and France have cor
dially seconded our proposition of me
diation, and I do not forego the hope
that it may soon be accepted by
by all the belligerents, and lead to a secure
establishment of peace and friendly relations
between the Spanish American republics of
the Pacific and Spain, a result which would
be attended with common benefits to the bel
ligerents and much advantage to all com
mercial nations.
I communicate for the consideration of
Congress a correspondence which shows that
the Bolivian republic has established the ex
tremely liberal principle of receiving into
its citizenship any citizen of tbe United
States, or of any other of the American Re
publics, npon the simple condition of volun
tary registry.
The correspondence herewith submitted
will be found painfully replete with ac
counts of the ruin and wretchedness pro
duced by recent earthquakes, of unsurpassed
severity, in the Republics of Pern, Ecuador
and Bolivia. The diplomatic agents and naval
officers of the United Slates who were present
in those countries at the the time of those
disasters furnished all the relief in their power
to the sufferers, and were promptly rewarded
with graceful and touching acknowledge
ments by the Congress of Pern. An appeal
to the cliarity of our fellow-citizens has been
answered by much liberality. In this con
nection I submit an appeal which has been
made by the Swiss Republic, whose Govern
ment and institutions are kindred to our own.
In behalf of its inhabitants, who are
suffering extreme destitution, produced
by recent devastating inundations.’' Onr -re-;
Iations witli Mexico during the year have
been marked by anrincreasing growth of mu-'
tual confidence. The Mexican Govern
ment has not yet acted npon the three
treaties celebrated heTe last summer for
establishing the rights of naturalized citi
zens npon a liberal and just basis, for re
gulating consular powers, and for the ad
justment of neutral claims. All commer
cial nations as well as all friends of Repub
lican institutions have occasion to regret
the frequent local disturbances which occur
in some of the constituent States of Colom
bo. Nothing has occurred, howevar, to ef
fect the harmony and; cordial friendship
which have for several years existed between
that youthful and vigorous Republic and our
own. Negotiations are pending with a view
to the survey and construction of a ship
canid across the Isthmus of Darien, under
the auspices of the United States. I hope to
be able to submit the results of that negotia-
fiS fins .rtoortoii bsirtraf- ad rsifr j
jsntartm awo *
tion to the Senate during its present session,
The very liberal. treaty which was entered
into last year by tne United States and Nica
ragua has been ratified by the latter republic.
Costa ftioa, with the earnestness of a sincere
ly friendly neighbor, solicits a reciprocity, of
trade, winch I commend to the" consideration
of Congress, The convention created by
treaty between the United States and Ven
ezuela in July, 1865, for the mutual adjust
ment of claims has been held,and the decision
having been received at the Department of
State. The heretofore recognized Govern
ment of the United States of Venezuela,
having been instituted under circumstances
which promise durability, it has been formal
ly recognized. I have been reluctantly
obliged to ask explanation and satisfaction
for national injuries committed by the Presi
dent of Hayti. The political and social con
dition of the Republics of Hayti and St
Damingo, and the entire West Indies, ,
except the Spanish Islands of
and Porto Rico has been followed by a pro- j
found popular conviction of the rightfulness j
of republican institutions, and an intense 1
desire to secure them. The attempt, how-1
ever, to establish republics there, encounters 1
many obstacles, most of which may be sup-1
posed to result from long-indulged habits of £
colonial snpineness and dependence upon
European monarchical Powers. 4VhiIe the
United States have, on all occasions, professed
a decided unwillingness that any part of this
Continent, or of its adjacent islands, shall be
made a theatre for a new establishment of
monarchical power, too little has been done
by us, on the other hand, to attach the com
munities by which we are surrounded to onr
own country, or to lend even a moral sup
port to the efforts they are so resolutely
and so constantly making to secure republican
institutions for themselves. It is indeed a ques
tion of grave consideration, whether onr recent
and present example is not calculated to
check the growth and expansion of free prin
ciples, and make those communities distrust,
if not dread, a Government which at will
consigns to military domination States that
ore integral parts of onr Federal Union; and
while ready to resist any attempts by other
nations to extend to this hemisphere the
monarchial institutions of Europe, assumes
to establish over a large portion' of
its people a role more absolute, harsh and
tyranieal than any known to civilized powers.
The acquisition of Alaska was made with the
view of extending national jurisdiction and
Republican principles in the American Hem
isphere. Believing that a further step conld
be taken in the some direction, I last year
entered into a treaty with the King of Den
mark for the purchase of the islands of
St Thomas and St John on the best terms
then attainable, and with the express consent
of the people of these Islands. This treaty
still remains under consideration in the Sen
ate. A new convention has been entered
into with Denmark enlarging the time fixed
for final ratification of the original treaty.
Comprehensive national policy would seem to
sanction the acquisition and incorporation
into our federal Union of the several
adjacent Continental and Insular communi
ties as speedily as it can be done peacefully
and without any violation of national justice,
faith or honor. Foreign possession or con
trol of those communities has hitherto
hindered the growth and impaired the in
fluence of the United States; chronic revolu
tion and anarchy there would be equally in
jurious. Each one of them, when firmly
established as an independent Republic, or
when incorporated into the United States
would be a new source of strength, and
conforming my administration to these prin
ciples, I have on no occasion lent support
or toleration, to unlawful expeditions set on
foot npon the plea of Republican propagan-
dism, or of national extension or aggrandise
ment. The necessity, however, of repress
ing such unlawful movements clearly in
dicates the duty which rests upon us of adopt
ing onr Legislative action to the new circum
stances of a decline of European monarchal
power and influence, and the increase of
American Republican ideas, interests and
sympathies. It cannot be long before it will
become necessary for this Government to
lend some effective aid to the solution of the
political and social problems which are con
tinually kept before the world by the two
Republics of the Island of St Domingo, and
which are now disclosing themselves
more distinctly than heretofore in the
the Island of Cuba. The subject is
commended to your consideration with all
the more earnestness because I am satisfied
that the time has arrived when even so direct
a proceeding as a proposition for an addi
tion of .the two republics of the island of
St Domingo would not only receive the con
sent of the people interested, but would also
give satisfaction to all other nations.—
I am aware that npon the question
of fnrthnr extending our possessions,
it is apprehended by some that onr
political system cannot successfully be ap
plied to an area more extended than our con
tinent But the conviction is rapidly gaining
ground in the American mind that, with the
increased facilities for intercommunication
between all portions of the earth, the princi
ples of free government as embraced in onr
Constitution, if faithfully maintained and
carried out would prove of sufficient strength
and breadth to comprehend witnin then-
sphere and influence the civilized nations of
the world.
The attention of the Senate and of Congress
is again respectfully invited to the treaty for
the establishment of commercial reciprocity
with the Haiwayan Kingdom, entered into
last year, and a treaty ratified by that
government The attitude of the United
States towards those Islands is not very
different from that in which they stand
towards the 4Vest Indies. It is known
and felt by the Haiwayan Government and
people, that their Government and institu
tions are feeble and precarious, that the
United States, being so near a neigh
bor, would be nnwilling to see the Isl
ands pass under foreign control. Their
prosperity is continually disturbed by expec
tations and alarms of unfriendly political
proceedings, as well from the United States
as from other foreign Powers. A reciprocity
treaty, while it would not materially
diminish the revenues of the United States,
would be a guaranty of -the good will and
forbearance of all nations, until the people of
the Islands shall of themselves, at no distant
day .voluntarily apply far admission into the
Union.
The Emperor of Russia has acceded to the
treaty negotiated here in Jannary last, for the
security of trade marks in the interest of
manufacturers and commerce. I have called
his attention to the importance of establishing
now while it seems easy and practicable a fair
and equal remuneration of the vast fisheries
belonging to the new nations in the waters
of the North Pacific Ocean.
The two treaties between the United States
and Italy, for the regulation of Consular
powers and the extradition of criminals, ne
gotiated and ratified here daring the last ses
sion of Congress, have been accepted and
confnmed by the Italian Government. A
liberal Consular Convention, which has been
negotiated with the Belgium Government,
will he submitted to the Senate. The very
important treaties which were negotiated be
tween the United States and North Germany
and Bavaria, for the regulation of the rights
of naturalized citizens, have been duly rati
fied and exchanged, and similar treaties have
been entered into with the kingdoms of Bel-*
gium and 4Vurtemburg, and with the Grand
Dutchies of Baden and Hesse. I hope soon
to be able to submit equally satisfactory con
ventions of the same character, now in the
course of negotiation with the respective
Governments of 'Spain and Italy and the Ot-
tmm Empire.
ahe examination of claims against the
United States by the Hudson’s Baj- Company
and the Pngets Sound Agricultural Company,
on ^account of certain possessory rights in
the State of Oregon and the Territory of
Washington, alleged by these Companies
in virtue of provisions of the treaty between
of June
rated un
join t International
ch they were submitted
treaty between the two
, and wilt, it is
[Concluded on fourth page.
r.1 ■ .ff .yiai i—irt nr
■ mad. bn£ an/M jtfa .rnseiH
1
1 .
J I
the Ui
15th,
I