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About The National Republican. (Augusta, Ga.) 1867-1868 | View Entire Issue (Dec. 10, 1868)
Natioiialllcpnblican \ < XtUhTA. <>**• IHI 118 DAY MOKNIND... .Dec. ,s6b Thi» is • Republic where the Will of the People is the Law of the Land. |U S. Graxt. •• Watch ortr thepittcrridion of thr Union with zealous eye, and ittdi<jnautly .frown upon fhr first dawnini/ of every attempt /■> alienale anu portion of th' Country from <kc rent, or tv rj'fi IJr M* Mend ties, which u>w link tht carious ptirh.'' —W ARHIXGTus’s Fare* > it. Annin -s. Jby iwrrj MESSAGE. W.vsihrcton, December 9. The following is the Message of the President, which yas read before Congress to-day: /•'cUow-Citueo* of th< Senate and Ho'ise <f ItqrmentatirrK : Upon the reassembling of Congress.it again becomes my duty to call your atten tion to the state of the Union, and to its continued disorganized condition under the various laws which have been passed upon the subject'of reconstruction. It may be assumed as an axiom in the gov ernment of the States that the greatest wrongs inflicted upon a people arc caused by unjust and contrary legislation, or by the unrelenting decrees of despotic rulers; and that the timely revocation of injurious and oppressive measures is the greatest good that can be conferred upon a nation. The legislator or ruler who has the wis dom and magnanimity to retrace Ins steps when convinced of error, will sooner or later be rewarded with the respect and gratitude of an intelligent and patriotic people. Our own history, although em bracing a period less than a century, affords abundant proof that most, if not all, of our domestic troubles are directly traceable to violations of the organic law and excessive legislation. The most striking illustrations of this fact arc fur nished by the enactments of the past three years, upon the question of reconstruction. ' After a fair trd they have substantially failed and proved pecuniary in their re sults, and there seems to be no good reason why they should longer remain upon the Statute book. States to which the Consti tution guarantees a Republican form of Government have been reduced to military dependencies, in each of which the people have been made subject to the arbitrary willofthe Commanding General. Although the Constitution requires that each State shall be represented in Congress, Virginia, Mississippi and Texas arc yet excluded from the two Houses, and, contrary to the express provisions in that instrument, were denied participation in the recent election for President and Vice-President of the United States. The attempt to place the white people under the domination of persons of color, which hns impaired, if not destroyed, the kindly relations that had previously existed between them, and mutual distrust has engendered a feeling of animosity w hich is leading in some instances to col lision ami bloodshed, and has prevented that co-operation between the two races so essential to the success of industrial en terprises of the Southern States. I save the inhabitants of those States alone suffered from the disturbed condition of affairs growing out of these Congressional enact ments I The entire Union has been agi tated by grave apprehensions of trouble, which might again involve the peace of the nation. Its interests have been inju riously affected by the derangement of business and labor, ami the consequent want of prosperity throughout that por tion of the country. The Federal Consti tution, the magna charta of American rights, under whose wise and salutary pro visions we have successfully conducted all our domestic and foreign affairs, and sus tained ourselves in peace and in war, and become a great nation among the powers of the earth, must assuredly lie now ade quate to the settlement of questions grow ing out of the civil war, waged alone for its vindication. This great fact is made most manifest by the condition of the country when Congress assembled in the month of Decemlier, 1865. The civil strife had ceased, the spirit of the rebellion had spent its entire force in the Southern States, the people had warmed into national life, and throughout the whole country a healthy reaction in public sentiment had taken place, by the application of the simple, yet effective provisions of the Constitution. The Executive Department, with the vol- untary aid of the States, had brought the work of restoration as near completion as was within the scope of its authority, and the nation was encouraged by the pros pect of early and satisfactory adjustment of all its difficulties. Congress, however, intervened, and, refusing to perfect the work so nearly consummated. declined to admit the members from the unrepresent ed States, adopted a series of measures which arrested the progress of restoration, and frustrated all that had been so suc cessfully accomplished; and. after three y ears of agitation and strife, left the country farther from the attainment of Union ami fraternal feeling than at the inception of the Congressional plan of txtconstruction. It needs no argument to show that the legislation which has produced such bane ful consequences, should be abrogated, or else made to conform to the genuine principles of Republican government. Under the influence of party passion and sectional prejudice, other acts have been passed not warranted by the Constitu tion. Congress has already been made familiar with my views respecting the Tenure of Office Bill. Experience has proved that its repeal is demanded by the best interest of the country, and that while it remains in force the President cannot enjoin that rigid accountability of public officers so es sential to an honest and efficient execution of the laws. Its revocation would enable the Executive to exercise the power of ap pointment and removal, in accordance with the original design of the Federal Consti tution. The Act of March 2d, 1867, making ap propriations for the support of the army for the year ending June 30, 186 b, and for other purposes, contains provisions which interfere with the President's Constitution al functions as Commander in-Chics of the Army, and deny to States of the Union the right to protect themselves by means of their own militia. These provisions should beat once amended. for while the first might, in times of great emergency, serious ly embarass the Executive in efforts to era ploy and direct the common strength of the nation for its protection and preserva tion, the other is contrary to the express declaration of the Constitution that “a well regulated militia being necessary to the security of a free State, the right of the people to keep and bear arms shall not be infringed.” It is believed the no- *i of all such laws would be accepted by the Ameri can people as, at least, a partial return to the fn*nlnment'd principle- of the Govern ihent, and an indication that hereafter the Constitution is to be made tin- nation * safe and unerring guide. They can be produc tive ot no permanent benefit to the country, ami should not be jiertuittcd to stand asso many tnonumeutaof the deficient wisdom which ha* characterized our recent Jcgi*la tion The condition of our finances demands the early ami honest consideration ot Con gress. Compared with the growth ot our population the public expenditures have reached an amount unprecedented in our history. Tin imputation of the United States in 1790 tu’Jirly four million -of people, inctea-ing each decade about 33 percent, it reached in IH6O thirty-one mil lions—an increase of 700 per cent, on the imputation in 1790. Tn 1869 it is estima ted that it will reach thirty-eight million#, or an increase of 868 per cent, in seventy nine years. The annual expenditures ot the Federal Government in 1791 were lour million two hundred thousand dollars : in 1820 eighteen millions two hundred thous and dollars; in 1850. forty-one millions : in 1860, sixty-three millions: in 1865, nearly thirteen hundred millions, and in 1869 it is estimated by the Secretary of the Treas ury, in bis last annual report, that they will be three hundred and seventy -two millions. By comparing the public disbursements ot 1869, as estimated, with those of 1791, it will be seen that the increase of expendi ture 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 ami sixty-eight per centum. Again, the expenses of the 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 that they will be three hundred and seventy-two millions—an increase of four hundred and eighty-nine per cent., while the increase of population was only tw enty one per centum for the same period. These statistics further show that in 1791. the annual national expenses compared with the population were little more than one dollar per capita, and in 186(1 but two dollars |>ei' 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 disbursements of peace periods. It may, therefore, be of in terest to compare, the expenditures of the three war periods—the war with Great Britain, the Mexican war, and the war of the rebellion. In 1814 the annual ex penses incident to the war of 1812 reached their highest amount, about thirtv-onc millions, while our population slightly ex ceeded eight millions, showing an expen diture of only three dollars and eighty cents per capita. In 1847, the expendi tures growing out of the war with Mexico reached fifty-five millions, and the popula tion. about twenty-one millions, giving only two dollars and sixty cents per capita for the war expenses of that year. In 1865, the expenditures called for by the rebellion reached the vast amount of twelve hundred and ninety millions, which, compared w ith a population of thirty four millions, gives thirty eight dollars and twenty cents per capita. From the 4th day of March, 1789, to the 30th of .lune, 1861; the entire expenditures of the Gov cmmerl were seventeen hundred millions of dollars. During that period we were engaged in wars with Great Britain and Mexico, and were involved in hostilities with powerful Indian tribes. Louisiana was purchased from France at a costof fifteen millions of dollars. Florida was added to us by Spain for five millions, California was acquired from Mexico at a cost of fifteen millions, and the terri tory of New Mexico was obtained from Texas for the sum ot ten millions. Early in 1861, the war of the rebellion com menced, and from the first of July ot that year to the 30th of June, 1865, the public expenditures reached the enormous aggre gate of thirty-three hundred millions. Three years of peace have intervened, and during that time the disbursements ot the Government have successively been live hundred and twenty millions, three hun dred and forty-six millions, and three hun dred and ninety millions. Adding to these amounts three hundred and seventy two millions, estimated as necessary lor the fiscal year ending the 30th of J une, 1860, we obtain a total expenditure ot sixteen hundred millions ot dollars during the four years immediately succeeding the war, or nearly as much as was expended during the seventy-two years that preceded the rebellion, and embraced the extraordi nary expenditures already named. 1 hese startling facts clearly illustrate the neces sity 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 »ow, that profound peace prevails. Ihe receipts from internal revenues and chstoms have, during the past three years, gradually diminished, and the continuance of useless and extravagant expenditures will involve us in National bankruptcy, or will make inevitable an increase of taxes, already too onerous, and in many respects obnoxious on account of their inquisitorial character. One hundred millions annually are ex pended for the military force, a large portion of which is employed in the execu tion of laws both unnecessary and uncon stitutional. One hundred and fifty millions are required each year to pay the interest on the public debt. An army of tax-gath . erers 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 leg islation and prudent economy can alone remedy defects and avert evils which, if suffered to exist, cannot fail to diminish confidence in the people towards their jxditical institutions. Without proper care, the small balance which it estimated will remain in the Treasury at the close of the present fiscal year will not be realized, and additional millions be added to a debt which is now enumerated by billions. * It is shown by the able and comprehen sive report of the Secretary of the Treasury that the receipts for the fiscal year ending Juno 30th. 1868, were $405,638,(183, and that the expenditures for the same period were $376,340,284, leaving in the Treasury' a sur plus of $28,297,789. It is estimated’that the receipts during the present fiscal year ending June 30th, 1869, will be $341,392,868,and the expenditures $336,152,470, allowing a small balance of $5,240,398 in favor of the Govern ment. For the fiscal vear ending J une>3oth, 1870, it is estimated that the receipts amount to $327,000,000 and the expenditures to *303,000,000, leaving an estimated surplus of $24,000,000. It becomes proper in this con nection to make a brief reference to our public intebtedness, winch has accumulated with such alarming rapidity, and assumed such colossal proportions. In 1789 when the Government com menced operations under the Federal Con stitution it was burdened with an iudebt edness of seventy-five millions of dollars, created during the war of the revolution. This aulouut had been reduced to forty five millions of dollars, w hen, in 1812, war was declared against Great Britain. The three year's struggle that followed largely iucre&sed the national obligations and in 1816 they had attained the sum of one Iran dred and twenty-seven millions. Wise and economical legislation, however, enabled th*- Government to pay the entire amount within a period of twenty yearn, ami the extinguishment of the national debt filled the land with rejoicing, and wasoue of the great events of President Jackson's admin miration. After its redemption a large fund remained in the Treasury which was de ported, for safe keeping, with the several States, on condition that it should be re turned when required by the public wants. In 1849, the year after the termination of an expensive war with Mexico, we found ourselves involved in a debt of sixty-tour million'- This was the amount owed by the Government in 1860, just prior to the out break ol the rebellion. .In the Spring of 1861, our civil war commenced. Each year of its continuance made an enormous addi tion to the debt, and when, in the Spring of 1865, the nation successfully emerged from tin- conflict, the obligations of the Govern ment debt had reached the immense sum of $2,873,992,909. The Secretary of the Treas ury shows that on the first day of Novem ber. 1867, this amount had been reduced to $2,491,564,450, but nt the same time his rejiort exhibits an increase during the past year of $35,625,102, for the debt on the first ilav of Not ember lasi is stated to have been $2,527,129,552. it is estimated by the Secre tary that the returns for the past month will add to our liabilities the further sum of eleven millions, making a total increase during thirteen months of forty- ix and a half millions. In my Message to Congress of Decemlier 4th, 1865, it was suggested that a ]x>liey should be d< vised which, without being op pressive to the people, would at once begin to effect a reduction of the debt, and if per sisted in. discharge it fully within :t definite number of years. The Secretary ol the Treasury forcibly recommends legislation of this character, and justly urges that the lon ger it is deferred the more difficult must become its accomplishment. We should fol low the wiseprecedentsestablishcdiu 1789 and 1816, and without further delay make pro vision for the payment 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 monied metropolists in out own anil other lands. Our foreign debt is already computed by the Secretary of the Treasury at eight hundred and fifty' millions. Citizens of foreign countries receive interest upon a large portion of our securities, and American tax-payers arc 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’ taxation too heavy to lie borne, and payment once in every sixteen years, at the present rate of interest, of tin amount equal to the original sum. This vast debt, if permitted to be ecome permanent and increasing, must eventually be gathered into the hands of a few. and enable them to exert a danger ous and controlling power in the affairs of the Government. The borrowers would be come servants to the lenders. The lenders the masters of the |>eople. Wc now pride ourselves upon having given freedom to four millions of the colored race. It will, then, be to our shame that forty mil lions of people, by their own toleration of usurpation and profligacy, have suffered themselves to become enslaved, and to have merely exchanged slave-owners for new task masters, in the shape of- bondholders and tax-gatherers. Besides, permanent debts pertain to monarchical governments, and arc tending to monopolies, while perpetuities and class legislation are totally irreconcilable with free institutions. Introduced into our Republican system, they' would gradually but surely sap its foundation, eventually subvert our governmental fabric, and erect upon its ruins a monied aristocracy. It is our 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 are to follow us carefully to avoid the dangers which threaten a free and inde pendent people. Various plans have berm proposed for the payment of the public debt. However they may have varied as to the time and mode in which it may be re deemed. there seems to be a general concur rence as to the propriety and justness of re duction in the present rate of interest. The Secretary of the Treasury, in his report, recommends five per cent. Congress in a bill passed prior to adjourn ment on the 27th of July last, agreed upon four and four and a half per cent, while by manv three per cent, has been held to be an amply sufficient return for the investment. The general impression as to the exorbitancy of the existing rate of interest has led to an inquiry to the public mind respecting the consideration which the Government inis actually received for its bonds, and the con clusion is becoming prevalent that the amount which it obtained was in real money, three or four hundred per cent, less than’the ob ligations which is issued in return. It cannot be denied that we are paying an extravagant percentage for use of money borrowed which was paper currency, greatly' depreciated be low the value of coni. This fact is made apparent when we consider that bondholders 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 banks, upon which those institutions issue their circulation bearing six per cent, in terest, and that they are exempt from tax ation 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 percent, which may be received upon each dollar by the owners of Government securities. A system which produces such results is justly regarded as favoring a few nt the expense of the many, and has led to the further inquiry : whether our bondholders, in view of the large pro fits which they have enjoyed, would them selves be averse to a settlement of our in debtedness upon a plan which would yield them a fair remuneration, and at the same time be just to the tax-payers of the nation? Our national credit should be sacredly ob served. But. in making provisions for our credi tors, we should not forget what is due to the masses of the people. It may be as sumed that the holders of our securities have already received upon their bonds a larger amount than their original invest ment, measured 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 reduction of the principal in semi-annual instalments,which, in sixteen 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 payment of debt one and a half times in a fraction less than seven teen years. This, in connection with all the advantages derived from their invest ment, would afford to the public creditors a fair and liberal compensation for the use of their capital; and with this they should be satisfied. The lessons of the past ad monish the lender that it is not well to be overanxious in exacting from the bor rower rigid compliance with the letter of the bonds. If provision be made for the payinenUoi the indebtedness of the Government, in the manner suggested, our Nation will rapidly recover its wonted prosperity. Its interests require that some measure should be taken to release the large amount of capital invested in the securities of the Government. It is now merely unproductive, but in taxation annually consumes one hundred and fifty millions of dollars, which would otherwise lie used by our enterprising people in adding to the wealth of the Nation. Out commerce, which successfully rivalled that of the great maraline. jtower,lms rapidly dimiiiishtil. and our industrial interests arc’in a tlcpresM.il and languishing condition. The develop ment of our inexhaustible resonrees is check ed, and the fertile fields of the South an Itctoniing wa<te for want of nteans to till I them. With the release of capital, new life would l>c infused into the puralyzwl eneigics of our |M><»ple, and activity mid vigor imputed to every branch of industry. Our |Hs>ple need encouragement in their < floita to recover from the effects of the rebellion oid <4 injudicious legislation, and it should Ixj th*' aim of the Government to stimulate theiu by tbc prospect of nn early rele.i-i from the burdens which impede their pro'peritv. If we cannot take the bunlens from their shoulders, we should at least mani fest a willingness to help to tear them. In referring to the condition of the circulating medium, 1 shall merely reiterate sutetan cially that jtortion of my last annual mes sage which relates to that subject. The propirtion w hich the currency of any coun try 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 legislation, but must lie left to the irrevoca ble laws which everywhere regulate com merce and trade. Tiie circulating medium will ever irresistn b)y How to those points where it is in greatest demand. The law of demand and supply is as unerring as that which regulates the tides of (he ocean, and. indeed, currency, like the tides, lias its ebbs and Hows through out the commercial world. At the beginning of the rebellion, the bank-note circulation of the country luuounted to not much more than two hundred millions of dollars. Now, the circulation of national bank notes, and (hose known as '‘legal tenders" is nearly' seven hundred millions. While it is urged by someihat this amount should be increased, others contend that a decided reduction is absolutely essential to the best interests of the country. In view of these diverse opinions, it may lie well to ascertain the real value of our paper issues, when compared with a metallic 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 than half the amount of the latter,' showing that when our paper currency' is compared with gold and silver, its commercial value is compressed into three hundred and fifty millions. This striking fact makes it the obvious duty o’ the Government, as early as maybe convenient with the principles of sound polit ical economy, to take such measures as will enable the holders of its notes and those of the National Banks to convert them, without loss, into specie or its equivalent. A reduc tion of our paper circulating medium need not necessarily follow. This, however, would depend upon the law of demand and supply, though it should be borne in mind that by making legal tender and bank notes converti ble into coin or its equivalent their present specie value, in the hands of their holders, would be enhanced one hundred per cent.— Legislation for the accomplishment of a result so desirable is demanded by' the highest pub lic considerations. Tlie Constitution contemplates tliat the circulating medium of the country shall be uniform in quantity and value. At the time of the formation of that instrument, the country had just emerged from the war of flic revolution, and was suffering from tlie effects of a redundant and worthless paper currency. The sages of that paper were anxious to protect their posterity from the evils which they themselves experienced. Hence, in providing a circulating medium, tlicy conferred upon Congress the power to coin money and regulate Uie value thereof, at the same time prohibiting the States from making anything but gold and silver a tender in payment of debts. The anomalous condition of our curreucy is in striking contrast with that which Was originally designed. Our circulation now em brace-, first, notes of the National Banks which are receivable for all dues to the Gov ernment. excluding imports, and by all its creditors excepting in payment of interest upon its bonds and tlie securities themselves; second, Legal Tender notes issued by the United States, and wliich the law requires shall lie received as well in payment of all' debts between citizens as of all Government duos, excepting imposts; find third, gold and silver coin. By the operations of our present system of finance, however, the metallic cur rency, when collected, is reserved only for one class of Government creditors, who, hold ing its bonds, semi-annually receive their in terest in coin from the national Treasury. There is no reason which will be accepted as satisfactory by the people why those who defend us on the land and protect us on the sea: the pensioner upon the gratitude of the nation, bearing Hie seal's and wounds re ceived while in its service; the public ser vants in various departments of the Govern ment; the farmer who supplies the soldiers of the army and the sailors of the navy; the artizan who toils in the nation’s workshops, or the mechanics and laborers who build its edifices and constructs its forts and vessels of war, should inpayment 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 jiaid in a currency possessing a uniform value. This can only be accomplished by the restoration of the' currency to the stand ard established by the Constitution, and, by | this means, we would remove a discrinuna- tion which may, if i* bus not already' done so, create a prejudice that may become deep rooted and wide-spread, and imperil the national credit. The feasibility of making our currency correspond with the constitu tional standard, may be seen by reference to a few facts derived from our commercial statistics. The aggregate product of precious metals in the United States, from 1849 to 1867, amounted to $1,174,000,000; while, for the same period, the net exports of specie were $741,000,000. This shows an excess of- products over exports of $433,000,000. There are in the Treasure 8103,401,985 in coin, in circu lation in the States on the Pacific coast, about forty millions dollars, and a few mil lions in the National and other banks—in all less than $160,000,000. Taking into con sideration the specie in the country prior to 1849, and that produced since 1867, and we have more than three hundred million dol lars not accounted by’ exportation or by the returns of the Treasury, and therefore it is most probably remaining in the country’. These are important facts, and show how completely the inferior currency will super sede the better, forcing it from circulation among the jnassee, and causing it to be ex ported as a mere article of trade, to add to the money capital of foreign lauds. They show the necessity 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 reten tion at homaof at least so much of the pro ductions of our rich and inexhaustible gold bearing fields as may lie sufficient for the purposes of circulation. It is unreasonable to expect a return to a second currency as long as the Government and the banks, by continuing to issue irredeemable notes, till the channels of circulation with depre ciated paper. Notwithstanding a coinage by our mints, since 1849, of eight hundred and sixty-four millions of dollars, the people axe now stran gers to the currency which was designed for their use and benefit, and specimens of the precious metals bearing the National device are seldom seen, except when produced to gratify the interest excited by their novelty. If depreciated paper is to lie continued as the permanent currency of the country, and all our coin is to become a mere article of traffic and to the enhancement in price of all that is indispensable to the comfort ot the people, it would be wise economy to abolish our mints, thus saving the Nation the care and expense incident to such estab lishments, and let all our precious metals 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 ar rangements lor a resumption of specie pay ments. J.et specie payments once be earnestly inaugurated by the Government and tanks, and th" valueof the paper circulation would directly approximate a specie standard. Specie'payments having been resumed by the Government and banks, all notes or bill’s of pa]H*r issued by either, of a less denomina tion than twenty' dollars, should, by law 1 > excluded from < ireulation, so that the people may have the lienctit and convenience of a gold and silver currency. w hich, in all their j busineMs tranaartions. will lie uniform in ! value ul home and abroad. Every man of property or industry- - | every man who desires to preserve what he honestly ]m>sm.-sm-s, or to uhtuin vvhal he can | honestly earn—has a direct interest in main | taining a safe circulating medium—such a . medium ar- shall be real and sub-tanttal, not ! liable to vibrate with opinions—not subject ; to lie blown up* r blown down by the brontli of speculation, but to lie 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 pnqicnsities I destructive of its happiness It wars against industry, frugn’itv, and economy, and it fosters the evil spirits of extravagance and speculation. 11 has *bcen asserted by one; of our profound and most gifted statesmen that, of all tlie contrivance*; for cheating tlie laboring classes of mankind, none has i»een more effectual than Hint which dedudes them witli pni>er currency. This is tlie most ef fectual of inventions to fertilize the ricli man's fields by the«vv eat of the poor num’s brow. Ordinary tyranny and excessive tax ation—these bear lightly on the happiness of tlie mass of the community compared with a fraudulent currency and tlie lobberics committed by depreciated paper, our own history has recorded for our instruction enough, and more than enough, of the de moralizing tendency, the injustice, and Hie intolerable .oppression on tlie virtue and well disposed of a degraded paper currency authorized by law, or in any way counte nanced by Hie Government. It is one of the most successful devices, in times of peace or war, of expansions or re vulsions, to accomplish tlie transfer of all Hie precious metals from tlie 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 inconvenience, sacrifice and demoralization resulting from tlie use of depreciated and worthless paper. Tlie Secre tary of the Interior in his report gives valua ble information in reference to the interests confided to the supervision of his Depart ment, and reviews tlie operations of the Land Office, Pension Office, and Patent (Hlice, and Hie Indian Bureau. During Hie fiscal year ending June 30. 1868, six millions six hun dred and fifty-five thousand seven hundred acres of public land were disposed of. Tlie entire cash receipts of Hie General Land Office for tlie same period were one million six hundred thirty-two thousand seven hun dred and forty-five dollars, being greater by two hundred and eighty-four thousm’d eight hundred and eighty-three dollars than the amount realized from the same sources during the previous year. The entree under the Homestead law scores two million three hundred and twenty-eight thousand nine hundred and sixty-three, excess nearly' one fourth of which was taken under the act of June 21st, 1866, which applies only to the States of Alabama, Mississippi, Louisiana, Arkansas and Florida. On the 30th of June, 1868, one hundred and sixty-nine thousand six hundred and forty-three names were borne on the pension rolls, and during the year ending on that dav the total amount paid for pensions, including the expenses of disbursements, was twenty-four million ten thousand nine hundred and eighty-two dol lars, being five million three hundred and ninty-one thousand and twenty-five dollars greater than tliat expended for like purposes during the preceding year. During the year, ending the 30th of Sep tember last, the expenses of the patent office exceeded the receipts by one hundred and seventy-one dollars; and, including reissues and designs, fourteen thousand one hundred and fifty-three patents were issued. Treaties witli various Indian tribes have been concluded, and will be submitted to the Senate for its constitutional action. I cor dially sanction the stipulations which pro vide’ for reserving lands for the various tribes, where they mav be encouraged to abandon their nomadic habits, and engage in agricultural and industrial pursuits. This policy, which was inaugurated several years since’ has met with signal success whenever it has been pursued in good faith and with becoming liberality by the United States. The necessity for extending it as far as practicable in our relations with the aborigi nal population is greater now than at any preceding period. Whilst we furnish sub sistence and instruction to the Indians, and guarantee the undisturbed enjoyment of their treaty' rights, we should habitually insist upon the fact that observance of their agree ment is to remain within their respective re servations. This is the only mode by which collisions with the other tribes and with the whites can be avoided, and the safety of our frontier settlement secured. The Companies constructing the Railway from Oinahii to Sacramento have been most energetically engaged in prosecuting the work, and it is believed that the line will be completed bcfortß the expiration of the next fiscal year. The six per cent bonds issued to these companies amounted to $44,337,000, and additional work had been performed to the extent $3,200,000. The Secretary of the Interior, in August last, invited my attention to the report of .a Government Director of the i nion Pacific liailroad Company', who had been specially instructed to examine Hie location, construc tion, and equipment of their road. I sub mitted for the opinion of the Attorney Gen eral certain questions in regard to the author ity of the Executive which arose upon this report, and those which had, from time to time, been presented by the commissioners appointed to inspect each successive sec tion of the work. After carefully considering the law of the ease, he affirmed theright ot theExccutive to order if necessary a thorough revision of the entire road, commissioners were thereupon appointed to examine this and other lines,and have recently submitted a statement of their investigations, of which tho report of the Secretary of the Interior furnishes specified information. The report of the Secretary of War contains information of interest and' im portance respecting the several Bureaus of the War Department, and the operations of the army, of the strength of our military force oil the 30th of September last was forty-eight thousand men, and it is confirmed that by the first of January next the number will be decreased to forty-three thousand. It is the opinion of the Secretary of War that within the next year a consid erable diminution of the infantry force may be made without detriment to the intercstsof the country; and in view of the great ex pense attending the military' peace establish ment, and the absolute necessity of retrench ment, wherever it can be applied, it is hoped that Congress will sanction the retrenchment which his report recommends. While in 1860 16,300 men cost the nation $16,472,000, the sum of $65,682,000 is estimated as necessary for the support of the army during the fiscal year ending June 30.1870. The estimates of the War Department for the last two fiscal year’s were, for 1867, $33,814,461; and for 1868, $25,205,669; the actual expenditures during the same periods were, respectively, $95,254,415 and $123,- 246,648. The estimate submitted in Pecem ber last for the fiscal year ending June 30th, 1869. was $77,124,707. The expenditures for the first quarter, ending tiie 30th of Sep tember last, were $27,219,t17; and the Sec retary 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 con siderably in access of $93,000,000. ' The dif ference between the estimates and expendi tures for the three fiscal years which have been named, Is thus shown to be $175,545,- 343 for this single branch of the publie ser vice. The report of the Secretary of the Navy exhibits the operations of that Depart ment and of the Navy during the year. A considerable reduction of the force lias been affected. There are forty-two vessels, carrying four hundred and eleven guns, iu the six squadrons which are established in the different ports of the world. Three of these vessels arc returning to the United States. ami four are used as storeships, leav ing an actual cruising force of thirty-five vessels, carry ing three hundred and fifty-six guns. The total number of vessels in'tiic Navy is two hundred and sixty—seventeen humlrevl and t<>rty three gun- Eighty one vessels of every are in I uht, ftrwd with -ix hundred nod ninety-six I guu». The number of enlisted men in the service is reduced to eight thousand five hun dred. An increase of Navy Yard fa< ihtioß is recommended as a measure which will, in the event of war, lie prouiotive of economy and security. A more thorough and systematic sunuy of the North Pacific t >cean is adviaed, in tiew of our recent acquisitions, our c»- panding commerce and the Increasing inter course w ith the Pacific StalesaudAsia. The Nuyii! Pension fund, which consists of n moiety of the avails of prizes capture* ’ dining the war—amounts to fourteen million dol lars. Exception is taken to the Act of 23d July last, Which nsluccs the interest on the fund loaned to the Government by His Secretary as trustee, to three 1 er cent, instead of six per cent., which was originally stipulated when the investment was made. ’ An amend ment of the Pension l-iws is suggested to remedy omissions and defects in existing en actment. Theexucuditures of the department during Hie last fiscal year were twenty mil lion one hundred anil twenty thousand three hundred and ninety-four dollars, and the es timates for the ensuing year amount to twen ty million nine hundred and ninety-three thousand four hundred and fourteen dollars. The Postmaster General’s report furnishes a full and clear exhibit of the ojierations and condition of the jxistal service. The ordinary postal revenue for the fiscal year ending June 30, 1868, was $16,292,600 and the total ex penditures, embracing all the service for which special appropriations have been made by Congress, amounted to $22,730,592, show ing an excess of expenditures bf $6,437,991. Deducting from Hie expenditures the sum of $1,896,525, Hie amount of appropriations for ocean steamship and other service, the excess of expenditures was $4,541,466, By using an unexpended balance in the Treasury of $3.800,(MX), the actual sum for which a spe cial appropriation is required to meet the de ficiency. is $641,466. The causes which pro duced this large excess of expenditure over the revenue, were the restoration of service in tlie late insurgent States, and the putting into operation of new service established by acts of Congress, which amounted, within Hie last two years and a half, to about 48,700 to more than oue-third of Hie whole amount of tlie service at the close of the war. New postal Conventions with Great Bri tain, North Germany, Belgium, the Nether lands, Switzerland, and Italy, respectively, have been carried into effect under their pro visions. Important improvements have re sulted in reduced rates of international post age, and enlarged mail facilities with Euro pean countries. The cost of the United State trans-Atlantic ocean mail service since January Ist, 1868, has been largely lessened under tlie operation of these new conven tions—a reduction of 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 invited to the practical suggestions and recommendations made in his report by the Postmaster Gene ral. No important ’question has occurred during the last year in our accustomed cor dial and friendly intercourses with the Costa Rica, Guatemala. Honduras, San Salvador, France, Austria, Belgium, Switzerland, Por tugal, the Netherlands, Denmark, Sweden and Norway. Rome, Greece, Turkey, Persia. Egypt, Liberia, Morocco, Tripoli, Tunis, Muscat, Siama. Borneo, and Madagascar. Cordial relations have also been maintained witli tlie Argentine and Hie Oriental Re publics. Tlie expressed w ish of Congress that our National good offices might be tendered to those Republics, and also to Brazilian and Paraguay for bringing to an end the calami tous war wliich lias so long been raging in the Valley of tlie La Platte, has been assidu ously complied with, and kindly acknowl edged by all the belligerents. That impor tant negotiation, however, has thus far been without result. Charles A. Washburn, late United States Minister to Paraguay, having resigned, and being desirous to return to the United States, the Rear Admiral, command ing the South Atlantic Squadron, was early directed to send a ship of war to Asccncion, the Capital of Paraguay, to receive Mr. Washburn and his family, and remove them from a situation which was represented to be endangered by faction and foreign war. The Brazilian Commander of tlie Allied in vading forces refused permission to tlie Wasp to pass through tlie blockading forces, and tliat vessel returned to its accustomed anchorage, remonstrance having been made against this refusal. It was promptly over hauled, and the Wasp, therefore, resumed her errand, received Mr. Washburn and his family, and conveyed them to a safe and convenient seaport. In the meantime, an excited controversy had arisen between the President of Paraguay apd the late United States Minister, w liicii, it is understood, grew out of his proceedings in giving asylum in the United States Legation to alleged ene mies of that Republic. The question of the right to give asylum is one always difficult, and often productive of great embarrassment. In States w’ell organized and established, foreign powers rentse either to concede or exercise that right, except as to persons ac tually belonging to tlie diplomatic service. On tlie other hand, all such powers insist upon exercising the right of asylum in the States where the law of Nations is not fully acknowledged, respected and obeyed. The President of Paraguay is understood to have opposed Mr. Washburn’s proceedings on the injniious and very improbable charge of personal complicity in insurrection and trea son. The correspondence, however, has not yet reached the United Stages. Mr. Washburn, in connection with this controversy, repre sents tliat two United States citizens attached to tlie Legation were arbitrarily seized at lus side, when leaving the Capital of Paraguay, committed to prison, and there subjected to torture, for the purpose of procuring confes sions of their own criminality, and testimony to support the President’s allegations against the United States Minister. Mr. McMahon, the newly appointed Minister to Paraguay, hav ing reached the La Platte, has been instructed to proceed without delay to Ascencion, 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 sistain such just demands as the occa. sion may require, and to vindicate the rights of the United States citizens referred to, and of any others who may bo exposed to danger in the theatre of war. With these exceptions, friendly relations have been maintained between the United States and Brazil and Paraguay. Our re lations during thepastyear wish Bolivia,Ecuador, Peru and Chili, have become especia’ly friendly and cordial. Spain, and the Republics of Peru, Bolivia and Ecuador, have expressed their wil lingness to accept the mediation of the United States for tho termination of the war upon the South Pacific coast. Chili has not finally de clared upon the question. In the meantime tlie conflict lias practically ex hausted itself, since no belligerent or hostile movement lias been made by cither party during the last two years ; and there are no indications of a present purposeto resume hostilities on either side. Great Britain and France have cordially seconded our proposition of mediation, and I do not forego the nope that it may soon be accepted by all tbe belligerents, and lead to a secure es tablishment of peace and friendly relations be tween the Spanish American Republics of the Pacific and Spain—a result which would be at tended with common benefits to tlie belligerents, and much advantage to all commercial nations. I communicate for the consideration of Cou giess a corresiMMidence, which shows- that the Bolivian Republic has established the extremely liberal principle of receiving into its citizenship any citizen of the United States, or of any other oi the American Republics, upon the simple con dition of voluntary registry. The correspond ence herewith submitted will be found painfully replete with accounts of the rain and wretched ness produced by recent earthquakes of unparal leled severity, in the Republics of Peru. Ecuador, and Bolivia. The Diplomatic Agents and Officers of the United States who were present in those Repub lics at the time of those disasters furnished all the relief in their power to the sufferers, and were promptly rewarded with grateful and touch ing ackuowleugements by the Congress of Peru. Au appeal to the charity of our fellow citizens has been answered by much liberality io this connection. $ submit an appeal w hich has been made by the Swiss Republic, whose Government and institutions are kindred to our own, in be half of its inhabitants who are suffering extreme destitution produced by recent devastating nua detions. Cur relations w ith Mexico, during the year, have been marked l>y an increasing growth »f mutual confidence. The Mexican tl-’iernuient has not yet acted upon the three treaties celebrated bore lost sum- m«r fur establishing tbe rights of epon a Hbsral ami just has", r “f 4 regulation us eoosular powers and f .’rti , justinent of annual elaiass. An t | 1C 4 1 nations, as well as all friend .; u y:'‘‘ er ‘ ul Mitutions, have occasion to regret tl,■ ’fLV“ ''' Incal disturbancoa which occur in ' „i,,. !' K!l constituent States of Columbia. b.i!j J l, Meurred, however, to effect the l.\r, 1 1 cordial friendebip which has fur •Rifted between that youthful ,U1 Republic and our own. Negoti.i ions aie t en' ' with a view to the survey and u••r.F'.tu ship canal across the Isthmus ■ I \ Hie auspices ot the United Biatt be able to submit tbe results of that i./ ' to tbe Senate during the prci»-t>t sc , The very liberal treat , wh last year, by the United States an,i X l( . a , . has been ratified by the latter Republic Rica, with the earnestness ot a sincerely fricn* neighbor, soKoila a roelprooity of trade, v.hi,V commend to the conslaerati >n ol C»,n A Convention i ailed by n treaty I,etw. United Staten and Venezuela, in July, lso i‘ f the mutual adjustment of claims,’ has i,. / held, and its decisions have been received I '' the Department of State. Hereto ore the r ognized government of tho United States , i Venezuela has been subordinate, and i provi aional government having been institute under circumstances which promise dursbilit, it has been formally recognized. li l ive t , ■' reluctantly obliged to usk explanation a,,!! satisfaction for National injuries committed by the President of Hayti. The political »nd social condition of the Republics of llavtiand St. Domingo, and the entire West Indies' except tbe Spanish Islands of Cuba and p orl ' Rico, has been followed by a profound doot° lar conviction of tbe rigbtfulluees of Rcmib! ; can institutions, and an intense desire to secur' them. The attempt, however, to esfnblisli republi. there encounters many obstacles, most which may be supposed to be from Tong in dulgcd habits of colonial supineness a n( f q,' penitence upon European monarchical power while tbe U nited States have on all occasions professed a decided unwillingness that anv part of this continent or of its adjacent islands shall be made a theatre for a new establishment of monarchical power. Too little lias been dom by us, on the other hand, to attach tbe communities by which we are surrounded to our own country, or to lend even a moral support to the efforts they are so resolutely and so constantly making to secure republican institutions for .themsolves It is a question of grave consideration whi-ilu r our recent and present example is not calculate! to check the growth and expansion of fre principles, and mak- these communities distru if not dread a Government which, at will, C on’ signs to military domination States that integral parts of our Federal Union, and, wbib ready to resist any attempt by other nations: extend to this hemisphere the monerohical io stitutions of Europe, assumes to establish over a largo portion of its people a rate mere absolute, harsh and tyrannical than any known to civil ized powers. The acquisition of Alaska was made with the view of extending national jurisdiction and re publican principles in the American bemispheii Believing that a farther step could be taken in the same direction. 1 last year entered into a treaty witli the King of Denmark for tlie pur chase of the Islands of St. Thomas and St. John, on the best terms then attainable, and with the express consent of Hie people of these Island . This treaty still remains under couijideralion in the Senate. A new convention has been entered into with Denmark, enlarging the time fixed for final ratification of the original treaty, Conqri liensive national policy would seem to sanction the acquisition and incorporation into our Federal Union of the several adjacent continental and insnlar communities as speedily ns it can be done, peacefully, lawfully, and without, any violativi of national justice, faith or honor. Foreign pos session or control of these communities lias liitii ert, hindered the growth and impaired the iutlr, ence of the United States. Chrome revolution and anarchy there would be equally injurious. Each one of them, when firmly established as an independent republic, or when incorporated iun the United States, would be a new sottrt. of strength and power. Conforming my administration to these prin ciples I have on no occasion lout supporter ink ration to unlawful expeditious on foot upon tin plea of republican propagandist!!, or of nation:: extension or aggrandizement. Tbe necessity, however, of repressing such unlawful movemem.* clearly indicates the duty which rests upon us of adapting our legislative action to tho newer cums’anees of a decline of European inoiarebi cal power and influence, and tho inci’ea f of American Republican ideas, interests and syi . •pathies. It cannot be long before it will be come necessvry for this Government to 'end some effective aid to tbe solution.<>f the political and social problems which are continually kept be fore the world by the two Republics of St. I>< mingo, and which are now disclosing themselves more distinctly than heretofore ini IstanAil Cuba. The subject is commended to your eousidn ation with all the more earnestness because I am ’satisfied that the time has arrived when even so direct a proceeding as a proposition lor an annexation of the two Republics of the Island of St. Domingo would not only receive the consent of the people interested, birtvvoukl also give satisfaction to all other foreign Na tions. I am aware that upon the question of further extending our possessions it is appro hended, by some, that our political system cannot successfully be applied to an arc more extended than our Continent. Hut the con viction is rapidly gaining ground with Ameri can mind that with the increased facilities for inter-communication between all portions of the earth, the principles of tree government, embraced in our Constitution, if faithfully maintained and carried out, would prove of sufficient strength and breadth to comprehend within their sphere and influence the civllizri nations of the world. ' ‘ Tb 4 attention of the Senate and of Congress r again respectfully invited to the treaty lortbv establiflimeni of couiniereiai reciprocity with the Hawaian Kingdom, entered into last year, mJ already ratified by that Government. The atti tude of the United States toward these Islands is not very different from that iu which they stand toward the West Indies. It is known and felt by the Ilawaisn Government and people that their Government and institutions are feeble and precarious; that the United States, being ' near a neighbor, would be unwilling to see the Islands p»»s under foreign control. Their pros perity is continually disturbed by expedition and alarms of unfriendly political proceedings, a, well front tho United States aS from other foreign powers. A reciprocity treaty, while it could not mate rially diminish the revenue of the United State would be a guarantee of the good will and lor bearance of all nations, until the people of the Islands shall, of themselves, at no distant day, voluntarily apply for admission into the Union. , The Emperor of Russia has acceded to the treaty negotiated here in January last, for the security of trade marks in tho interest of mann facturers and commerce. I have invited his attention to the importance of establishing now, while it seems easy and practicable, a lair an equal regulation of the vast fisheries belonging o the new nations in the waters ot the -bort Pacific Ocean. . The two treaties between the I mud Diarra and Italy for the regulation of Consular -pow ei’ and the extradition of criminals, negotiart. and ratified here during the lust session ot c gress, have been accepted and coniirnw' . the Italian Government. A liberal Const convention. which has beeu negotiated "• Belgium will be submitted to tl c Senate, less important treaties which were uegoti* between the United States and North Genna-iy and Bavaria, for the regulation ot the iii.b naturalized citiz.ens, have been du y rati • and exchange and similar treaties hay' l - j entered into with the kingdoms ot Belgium Wurtembert’, and with the Grand B ue “ l .* , 0 Baden anti Hesse. I hope soo? t< ?. be th ,. submit equally satisfactory contentions > same character now lit the courseot nego with the respective governments oi l- Italy, and the Ottoman Empire. . Examination of claims agaiust 6w States by the Hudson Bay Company ““ Puget's Sound Agricultural Company, on a a of certain poesessory rights in the State ot and Territory of Washington, alleged sot tuew Companies in virtue of provisions of tilt. . between the United States and Great Bnta , . Jnne 15, 1846, has been dihgentlv P r ’ . , u under the direction of the joint internation’ mission, to which they were submitteu w j . cation by treaty between the two Govern®. m of July’J. JMKf.tmd will.it is expected eluded at an early day. °,PT* « ?-I can be concerning cokmml trade »ud the . sta;e , accomplished by treaty tietwecn the ! i and Great Britain until Cougrew p J.‘j uc ; P le pressed their fudgmeul coneesniifi , e J.......*1,r Involved. Three other question’- a ,' Kri[a) ',i r, tween the United States anil Great U main open for adjudication- Theee ’’ lV ' , arv tnal rights of naturalised citizens, the Sau queetion, involving the title t<> the Iria | w)in , Juan, on the Pacific coast, and mu » hßi , atieing since the year 18-sl, of the c . , lU ,| subjeets of the two countries, tor ' ll -l""'j T , depredations committed undu the their respective Government a. Negotiate S’ upon these objects are pem s and 1 am not without hope ot bving a® 4
