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The President’s Messag e. of the Pre-iilent of the Uni'out .S'alri to the two Houses of (jontjrtm at th* commence merit oj the first setxlonof th*. thirty-ninth C<m gress. Fellow citizens of the Senate and Houve of Representatives : To express gratitude to God, in the name of the People, for tbo preservation of the United States, Is my first duty in addressing you Our thoughts next revert to the death of the late President by an act of pirricidal treason. The grief of the nation is still fresh ; it find, some solace in the consideration that he lived to enjoy the highest proof of its confi fence by entering on the renewed term of the Chie! Magistracy, to which he had been elected ; that he brought the civil war substantially to a close ; that his loss whs deplored in all parlg of the Union ; and that foreign nations have rendered justice to h>s mem>ry. Hk rear jv al cast upon mo a heavier weight of cares than ever devolved upon any one of bis predeces sors. To fulfil my trust I need the support and confidence of all who aro associated wi;b me in the various department-" of Government, and the support and confidence of the people. There is but one way in which I can hops to to gain their necessary aid ; it is, to state with frankness the principles which guide my con duct. and heii application to the present s ate of uffai'S, well aware that the efficiency o' my labor" will, in a great measures, depend on your aDd their undivided approbation. Tho Union of the United States of America was intended its authors to last as long as the States tfiemselves shall last. “The Union ■hall bo perpetual" aro the words of the Con federation. “To form a more perfect Union,” by an otdinance of the people of the United States, is the declared purpose es theCoustitu tion. The hand of Divine Providence was never more plainly visible in the affairs of men than in the framing and the adopting of that, instrument. It is, beyond comparison, the the greatest eveut in American history ; and indeed is it not, of all events in modern times, the most pregnant with consequencei for every people of the earth ? Tho mem hers of tne Convention which prepared it, brought to their work ho "Xptriento of the Confederation, of their severul States, and of other Republi can Governments, old and new ; but they needed and they obtained a wisdom uupeiior to experience - And when for its validity it required the approval of a people that occu pied a largo part of a continent and acted sepa rately in tnauv distinct conventions, what is more wonderful than that, after earnest con tention and long discussion, all feelings and all opinion were ultimately diawn in one way to its support ? The Constitution to which life was thus im parted contains within itself ample resources for its own preservation. It has power to en force the laws, punish treason, and ensure do mestic tranquility. In case of the usurpation of tho Government of a State by one man, or an oligarchy, it becomes a duty of the United States to make good tho guarantee to that State of a republican form ol government, and ■0 to muiutain tho homogeueousness of ull. Does the lapse of tinle reveal delects ? A simple mode of a endment is provided in the Constitution itself, so that, its conditions eau always bem.de to conform to tho require ments of advancing civilization. No room is allowed even for the thought of a possibility ot its coming to au end. And these powers ot self preservation have always been asserted in their complete integrity by every pa'notic Chief Magistrate - by Jefferson and Jackson, no less than by Washington and Madison The parting advice of the Father of his Country, while yet President, to the people of the Uni ted .States, was, that “the tree Constitution, which waslhewoikof their hands, might be sacredly maintained and the inaugural words of President Jefferson held up “tin preservation of the Geueial Government, in its constitutional vigor, as tne sheet anchor 01 our peace at home and safety abroad." The Constitution is the work ot “the people of the Uuited Stales,” aud it should be asiudestiucli ble us the people. It is not straugu that the framers of the Constitution wh eh had uo model in the past, should not have fully comprehended the ex cellence of their owu work. .Fresh irom a struggle against arbitrary power, many pa trioia suffered irom h»iu*.-iug tears of uu ab sorption of the Stale Governments by the General Government, and many from a dread that the Slates would break away trout their orbits, but the very greatness of our country should allay the apprehension of encroach ments by the Geueral Government. The subjects that come uo questional).y within its jurirdictiou are so nuim-ious, that it must ever naturally refuse to be embarrassed by ques tions that lie beyond it. Were it otheivvise, the Executive would sink beneath the ounion; the channels ot justice would be choked ; leg islatiou be obstiuoe't by excess ; so that there is a greater temptation toexerc se Some of the functions of the Geueial Government through the States thau to trespass on their rightful sphere “The absolute acquiesence in the decisions of the majority” was, at the begin niug of the century, euforced by Jefferson “as the vital prjuciple of republics,” and the events of the last lour years have estab islnd. we will hope forever, that there lies uo appeal to force. The maintenance of the Union brings with it “tho support ot the S ate Governments iu ull theit rights but it is not one of the rights of any State Government to renounce its own place iu the Union, or to nulify the laws of Union. The largest liberty is to be m detain ed in the discussion of tho acts af the Federal Government; but there is no appeal from its laws, except to the various blanches of Ilia' Government itself, or to the people, who giant to the members ot the L gislativo aud ot the Executive Departments no tenure but a limited one, aud in that manner always retain the powers of redress “The sovereignty of tho States’’ is the lan guage ot the Confederacy, aud not tho lau gu ge of the Ccustituii .and. The latter con tains the emphatic words : Tho Consdtut'ou, and the laws of the United States which shall be made in pursuance thereof, and all treaties made or which shall be made under the au thority of the Uuited States, shall be the su preme law of tho laud ; and the judges in every State shall be bound thereby, anything In the constitution or laws of any State to the contrary notwithstanding ’ Certainly the Government of the United States is a limited government; aud so is every State government a limited government With ns, this idea of limitation spreads thrbugh every form of administration, general, State aud municipal, aud rests on the great distin guishing principle of the recognition of the lights of man. The ancient republics absorb ed the individual iu the State, prescribed his religion, aud controlled his activity. The American system rests on the assertion of Un equal right of every man to life, liberty, and the pursuit of happiness ; to freedom of con •Cience, to the culture aud exercise of all his faculties Asa consequence, tho State Gov ernmeut is limited, as to the General Govern ment in the interest of Union, as to the indivi dual citizen in the interest of freedom. States, with proper limitations of power, are essential to the existence of the Constitution o! the United States. At the very comment e mect, when we assumed a place among the Powers of the earth, the Declaration ot Inde pendence was adopted by btat s ; so also were the Articles of Confederation ; aud when‘‘the people of the United States’ 7 ordained and established the Constitution, it was the assent of the States, one by one, which gave it vitali ty. In the event, too, of any amendment to the Constitution, the ptopositiou ot (Joneress needs the confirmation of States. Without States, one great bianch of the legislative government wou and be warning And, if we look beyoftd the letter ot the Constitution to the character of our country, its capacity for •omprehendiug within its jurisdiction a v*st continental empire is due to the system of States The best security for the perpetual existence of the States is the “supreme au thority’ 7 of the Constitution of ih« United States The perpetuity of the Constitution brings with it the perpetuity of the States ; * Iheir mutual relation makes us what wo a:e, and in our political system th ir connexion is indissoluble, 'the whole c&anot exist with out the parts, nor the parts without tiie whole. So loug as the Constitution of tho United States endures, the Stale will tn-ure ; the de struction of the one is the destruction of the other ; the preservation of the one is the pre serration ot the other. J have thus explained my views of the mu tual relations of tha Constitution and the .Stales, bccau-c they unfold the principles on which I have sought to solve the momentous questions and oveicome the appalling difficul ties that met me at the very commencement of iny administration. It has been my steadfa«t object to o'cape from the swav of m" mentarv pifl.-iioa, and to derive a bearing policy from tii« lur.damen’al and unchanging princip es of the Constitution. I found the States =uff tricg from tha effects of a civil war. Resistance to the General Government appeared to have exhausted it self. The United State3 had recovered posses sion of their f Trts and arsenals; and their armies were in the occupation of every State which had attempted to secede. Whether the territory within the limits of those States shou-d beffitld as conquered territory, under military authority emanating from the Presi dent as ILe bead of the army, was the first question that pre-en'ed itself for df-C’sion. N .w, mi i’ary governments, established for an in infinite period, would have off red no security f°r the early suppression of discon tent ; would have divided the people into the vanquishers and the vanquished; and would have envenom. and hatred, rather than have re stored •„flection. Once established, no precise limit to their continuance was conceivable lhey would have occasioned en incalculable am! exhausting expense Peaceful emigration to and Irom that p irtion of the country is one of the be t means that can be thought of for the restoration of harmony, and that emigra tion would have been prevented ; for what emigrant from abroad, what industrious citi zen at home, would place himself willingly un der military rule? ihe chief persons who would have followed in the train of the army would have been dependents on the General Govern ment, or nun who expected profit from the miseries of "their erring to llow citizene. The powers of patronage and rule which would have been exercised, under the President, over a vast, and populous, and naturally wealthy region, are greater than, unless under extreme necessity, I should be willing to entrust to any one man.; they are such as, for myself, I could never, unless on occasions of great emergency, consent to exercise. The wilful use of such powers, if continued through a period of years, would have end uigerod the purity of the gene ral administration and the liberties of the States which remained loyal. Besides the policy of military rule over a conquered territory would have implied that the Stab b whose inhabitants may have taken part in the rebellion had, by the act of those inhabitants, ejasod to exist. But the true theo ry is, that all pretended acts of secession wore from tho beginning, null and void. The States cannot commit treason, nor screen the individual citizens who may have committed treason, any more than they can make valid treaties or engage in lawful commerce with aiy foreign Power. The States attempting to recede placed thennelves in a condit on where their vitality was impaired, but not extinguish ed—their functions euapauded, but not de stroyed . But if uny Siate neglects or refuses to per form iLB offices, there is the more need that the General Government should maintain all its authority, and, as soon as practicable, re sume the exercise of all its functions. On tills- principle I have acted, and have gradu ally and quietly, and by a'most imperceptible steps, sought to restore the rightful energy ol the General Government and of the States.— To that end, Provisional Governors have been appointed for the States, Conventions called, Governors elected, Legislatures assembled, and Senators and Representatives chosen to the Congress of the Uuited States. At the same time, the Courts of the United States, as far as could be done, have been reopened, so that the iaws of the United States may be enforced through 'heir agency The blockade has been removed and the custom houses re established in ports of entry, so that the revenue of the United States may be collected. The Post Office Dcpaitment renews it ceaseless activity, and the General Government is thereby enab led to communicate piomptiy with its officers and agents Tbe courts bring security to per sons and property ; the opening of the ports invites the restoration of industry and com merce ; tho post office renews the facilities of social intercouse and of business. And is it not happy for us all, that tho restoiation of each one of these functions of the General Govern ent filings witn if a blessing to the States over wbmh they are extended f Ts it not a sure promise ot harmony aud renewed attachment to the Union that, after all that happened, the return of the Geueral Govern ment i- itnowu only as a beneficence ? I know very well that this policy is attended with some risk; that for its success it requires at least the acquiescence of the States which it concerns; that it implies au invitation to thos"> States,by renewing theiraliegianoeto the United Staffs, to resume their Inactions as States of the Union. But it is a risk that must be taken; in the choice of difficulties, it is the smallest risk; aud to diminish, and, if possible, to re move all danger, I have felt it incumoent on me to assert one other power of the General Dover, merit—the power of pardon. As no State can throw a defence over the crime of treason, tbe power ol paid.in Is exclusively vest ed iu the Executive Government of the United States In exercising that power, I have taken every precaution to connect it with the clear est recognition oi the binding force of the laws of the United States, and an unqualified ac kaowiedgment of the great social change of condition in regard to slavery which has grown out ot the war. Ihe next step which I have taken to restore the constitutional relatiqns of the States, has been an invitation to them to participate In the high office of amending tbe Constitution. Every patriot must wish lor a general amnesty at the earliest epoch consistent with public safety For this great end there is need of a concur reuce of all opinions, and the spirit of mutual conciliation. All parties in the late terrible coiifl ct must work together in harmony. It is not too much to a?k, in the name of the whole people, that, ou the one side, the plan of restoration shall proceed in conformity with a willingness to cast the disorders of the past into oblivion; and that, on the other, the evi dence of sincerity in the future maintenance of the Union shall be put beyond any doubt by the ratification of the proposed amendment to the Constitution, which provides for the abolition of slavery forever within the limits of our country. So long as the adoption ot this amendment is delayed, so loug will doubt, and jealousy, and uncertainty prevail. This is the measure which will effaco tho sad memory of the p st; this is the measure which will most certainly call population, and capi tal, ana security so those parts of the Union that need them most. Indeed, it is not too much to ask of the States which are now re suming their places iu the family of tne Union to give this pledge of perpetual loyalty and peace. Until it is done, the oast, however much we may desiro it, will not be forgotten. The adoption of the amendment reunites us beyond all power of disruption. It heals the wound that is stiff imperfectly closed ; it re moves slavery, the element which has so long perplexed and divided the country ; it makes of us once more a united people, renewed and strengthened, b - und more than ever to mu tual affection and support. ILo amendment to the Constitution being adopted, it would lemain tor the States, whose powers have been so long in obeyaace, to re same their places in the two branches of the National Legislature, and thereby oomplete the work of restoration Here it is for ‘you. fellow-citiz ns of the Senate, and for you, fel tow citizens of the House of Representatives, to judge, each of you for yourselves, of the elections, returns, and qualifications of your own members. The till assertion of the powers of the Gen eral Government requires the holding of Cir cuit Courts of the United States within the districts where their authority has been inter rupted. In the present pcs'ure of our public affdrs, o'jectiocs have been urged to ho'diae those courts in any of the States Where the rebellion has existed ; and it was ascer tained, ny inquiry, that the Circuit Court of Cuited States w uid not be bed within the District of Virginia during the autumn or early wiuter, cor until Congress sb‘u'd have “an opportunity to consider and acton the whole sut j ct. M To your deliberations the restora tb'ii of this branch of ta? civil authority of the Uni'ed States is therefore necesearilv referred, wi h the hope that early provision will be matte for the resumption of all its functions, it is manifest that treason, most flagrant in character, has been committed, bers'os who are charged with its commission should have fair and impartial trials in the highest civil tribunals of the country, in ord-» that the Constitution and the law* may ba fullv vindi wated ; the imxth clearly esta'ulished and affi Di ed that treason is a crime, that traitors should be punished end the <if .ce made in famous ; and, at the same time, th»t the ques tion {may be judicially settle], finally a.d forever, that no State of its will has the right to renounce its place in the Union. The relation 3 of the G neral Government towards the :'ou r mi lions of inhabitants whom the war has ca lid into freedom, have enga ged my most serious consideration On the propriety of attempting to make the freedmen electors by the proclamation of the Execu tive, I took for my council the Constitution itrelf, the interpretations of’that instrument by is authors and their contemporaries, and recent legislation by Congress. When, at the r first movrm*nt towards indeoendeace, the Congress of the United States instructed the several .States to institute govi-rnm-mts of their own, they left each State to decide for itself the conditions for the enjoyment of the elec tive franchise. During ihe period of the Con federacy, there continued to exist a very great diversity in the qualifications of electors in the several States ; and even . withiu a State a distinction of qualifications prevailed with re gard to the officers who were to be chosen. The Constitution oi the United States recog nises these diversities when its enjoins that, in tho choice of members of the House ot Representatives of the United States, “the electors in each State shall have the qualifica tions rtqu site for electors of the most num erous branch of the Slate Legislature ’’ After the formation of tho Constilotion, it remained, as before, the uniform usage for each State to enlarge the body of its electors, accord ing to its own judgment ; and, under this system, one State after another has proceeded to increase tha number of sti electors, until now universal suffrage, or something very near it, is the general rule. So fixed was this reservation of pjwer in the habits of the people, and so unquestioned has been the interpretation of the Constitution, that during tho civil wai the late President never harbored the purpose—certainjy avowed the purpose—ot disregarding it; and in the acts of Congress, during that period, nothing can be found which, during the con tiauauco of hostilities, much less after their close, would have sanctioned any departure by the Executive from a policy which has so uniformly obtained. Moreover, a concession of the elective franchise to the freedmen, by act of the President of the United States, must have been extended to all colored men, wherever found, and so must have established a change of suffrage in the Norlheva, Middle, and Western Ssates, not less than in the Southern and Southwestern Such an act would have created anew c ass of voters, and wou'd have been an assumption of power by the President which nothing in the Constitu tion or laws of the United States would have warranted. On the other baud, every danger of corffiic t is avoided when the settlement of the question is referred to the several States. They can, each for itself, decide on the measure, and whether it is to be adopted at once and abso lutely, or introduced gradually and with con ditions. In my judgement, the freedmen, if they show patience and manly virtues, will sooner obtain a participation in the elective franchise through the States than through the General Government, even if it had power to intervene. When the tumult of emotions that have been raised by the suddenness of the social change shall have subsided, it may prove that they will receive the kindliest usage from some of those on whom trey have heretofere most closely depended. But while I have no doubt that now, after the close of the war, it is not competent for the General Government to extend the elective franchise in the several States, it is iqually clear that good faith requires the security of the freedmen in their liberty and their proper ty, their right to labor, and their right to claim the just return ot their labor. I cannot too strongly urge a dispassionate treatment ot this subject, which should b<i carefully kept aloof from all party strife We must equally avoid hasty assumptions of any natural impossibility (or the two races to live side by side, in a state of mutual benefit and good will. The experi ment involves us in no Inconsistency ; let us then, go on and make that experiment in good faith, and not be too easily diehearteced. The Country is in need of labor, and the freedmen are in need ot employment, culture, and protec tion. While their right of v ffintu’y migration aud expatriation is not to be questioned, I would not advise their forced removal and col onizilion. Let us rather encourage them to honorable and useful industry, where it may be beneficial to themselves and to the country ; and, instead of hasty anticipations of the cer tainty cf failure, let there be nothing wauting to the fair trial of tho experiment The change in their condition is the substitution of labor by contract for tha status of slavery Tne freedmen cannot be fairly accused of unwilling ness to work, so long a3 a doubt remains about his freedom of choice in his pursuits, and the certainty of his recov rffig his stipulated wa ges. In this the interests of the employer •-••rid the employed coincide. The employer desires in his workmen spirit and alacrity, and these can be permanently secured in no other way Aud if the one ougnt to bo able to enforce the contract, so ought the other. The pubic inb-r est will be best promoted, if tbe several States will, provide adequate protection and remedies tor the freedmen. Until this is in some way accomplished, there is no chance for the ad vantageous use of their labor ; and the blame of ill success will not rest on them. I know that sincere philanthropy is earnest for the immediate realization oi its remotest aims; but time is always an element in reform. It is one of the greatest acts on record to have brought four millions of people into freedom. The career of free .industry must be fairly opened to them ; and then their future pros perity and condition must, after all, rest main ly on themselves. It they and so perish away, let us be careful tnat the failure shall not be attnbutablo to any denial of justice. In all that relates to the destiny of the freed men, we need not be too anxious to read the future ; many incidents which, from a specula tive point of view, might raiso alarm, will quietly settle-themselves Now that slavery is at an end or near its end, the greatness of it3 evil, in the point of public economy, becomes and more ap parent. Slavery was essentially a monopoly of labor, and as such locked the States where it prevailed against the incoming of free in pnstry. Where labor wa3 the property of the capitalist, the white man was excluded frem employment, or had but tho second best chance of finding it; and th. foreign emigrant turned away from the region where liia condition would be so precious. With the destruction of the monopoly, free labor will hasten from all parts of the civilized world to assit in developing various and immeasurable recour ces which have hitherto lain dormant The eight or nine States nearest the Gulf of Mexi co have a soil of exuberant fertility, a climate friendly to long life, .and can sustain a denser population than is found as yet in any part of our country. And the future influx of popu'a tion to them will be mainly from the North, or from the most cultivated nations in Europe. From the sufferings that have attended them duriDg our late stiuggle, let us look away to the future, which is sure to be laden for them with greater prosperity than has ever before been known. Tne removal of thts monopoly of slave labor is a pledge that those regions will be peopled by a numerous and enterpris ing population, which will vie with any in the Union in compactness, inventive genius, wealth, and industry. Our Government springs from and wa3 made for tie people—not the people for the Gov ernmant. To them it owes allegiance ; from -them it must derive its courage, strength, and wisdon But, while tho Government is thus bound to deter to the people, from whom it de rive its existence, it should, from the very consideration of its origin, be strong ia its power of resistance to the establishment of in equalities Monopolies, perpetuities, and class legislation, are contrary to the genius of free government, and ought not lo be alloyed, tlere, thme is no room for favored classes or monopolies, the principle, .f our Government is that of equal laws and lteedom of industry. Wherever monopoly attains a footbohl, it is sure to be a source oi and mger, discoid, ami trouble, We shall but fulfil our dudes as legislatorsbr according -‘equ ii and cx-.m j- - tce to all men, - ’ special privileges to mme. j she Government is subordinate to limp, cpi-. ! but, as the agent and representative of the i people, it must be held superior to monopolies, | which, in themselves, ought never to be granted, and which.Jwh<»re they exist, must be subordinate and yield to the Government The Constitution confers on Congress the right to regulate commerce among the several | States. It is of the fir.-t necessity, tor the : maintenance of the Union, that that commerce should be free and un -bstrncteri. No State can be justified in any device to tax the tran sit of travel and commerce between Stales. The position .of many States in such that, if they were allowed to take advantage of it for purpose of local revenue, the commerce be tween States might be injuriously burdened, or even vi t ally proh bt and. It is te-t, whil-j.tbe , country is still young, and while the tendency ; to dangerous monopolies of this kind is still [ feeble, to use the pow-r of Congress so as to ; prevent any selfish impediment to the free | circulation es men and merchandise. A tax on ! travel and inetebandiso, in their transit, qon ! stitutes one of the worst forms of monopoly, ard the evil is increased if coupled with a de nial of the choice of route When the vast extent of our country is considered, it is plain that every obstacle to the free circulation of commerce between the States ough: to be sternly guarded against by appropriate legisla tion, within the limits of the Constitution The report of the Secretary of the Interior explains the condition of the public lands, the transactions ot the Patent Offics and the Pen sion Bureau, the management of our Indian affairs, the progress made in the construction of the Pacific Railroad, aud furnishes inferma tion in referecco to matters of local interest in the District of Columbia. It also presents evidence of tho successful operation of the Homestead Act, under the provisions of which 1,160,533 acres of the public lauds were entered during the last fiscal year—more than one fourth of the whole number of acres sold or of during that period. It is estimated that the receipts derived frem this source are sufficient to cover the expenses in cident to the survey and disposal of the lands entered under this Act, and that payments in cash to the extent of from forty to fifty per cent, will bemade bj settlers, who may thus at any time acquire title before the exp ration of the period at wigich it would otherwise vest, i’he homestead policy was established only after long and earnest resistance; experience proves its wisdom. The lands, in the Lands of industrious settlers, whoso labor creates wealth and contributes to the publio resources, ar-3 worth more to the United States than if they had been reserved as a solitude for future pur chasers. The lamentable events of the last four years, and the sacrifices made by tho gallant men of our Army and Navy, have swe'led the records of the Pension Bureau to an unprecedented ex tent. On the 30th day of June last, tha total number of pensioners was 85,986, requiring for their annual pay, exclusive of expenses, the sum of $8,023,445. The number of applica tions that have been allowed since that date will require a large increase of this amount for the next fiscal year. The means for the pay ment of the stipends due, under existing laws, to our disabled soldiers aud sailors, and to tho families of such as have perished in the service of the country, will no doubt be cheeifullv and promptly granted. A grateful people will not hesitate to sanction any measures having for their object the relief of soldiers mutilated and families made fatherless in the efforts to preserve our national existence. Tho report of the Postmaster General pre sents an encouraging exhibit of tho operations of the Post Office Department during the year. The revenues of the past year from the loyal States alone exceeded the maximum annual re ceipts from all the States previous to the re bellion, in the sum of $6,038,091; and tho annual average increase of revenue during the last four years, compared with the revenues of the four years immediately preceding the re bellion, was $3,■'533,845. The revenues of the last fiscal year amounted to $14,556,158, aud the expenditures to $13,694,728, leaving a sur plus of receipts over expenditures of $861,430. Progress has been made in restoring the postal service in the Southern States. The views pre sented by the Postmaster General against the policy of granting subsidies to ocean mail steamship lines upon established routes, and in favor of continuing the present system, which limits the compensation for ocean service to the postage earnings, are recommended to Ihe eareiul co sideration of Congress. It appears, from the report of the Secretary of the Navy, that while, at thecommenoernewt ot tho present year, there were in commission 530 vesse-s of all classes and descriptions, armed with 3,000 guns aud manned by 51.000 men, the number ot vessels at present in com mission is 117, with 830 guns and men. By this prompt reduction of the naval forces the expenses of the Government have been largely diminished, and a number of vessel?, purchased for naval purposes Irom the mer chant marine, hive been returned to tho peac s tut pursuits of commerce. Since the suppres sion of active hostilities our foreign cquadron have been re-established, and consist of ve.-sels much more efficient than those employed on similar service previous to the rebellion. The tuggesfion for the enlargement of ike navy yards, and especially for the establishment of one in fresh water for iron clad vessels, is de serving of consideration, as is also the recom mendation for a different location anu moro ample grounds for the Naval Academy. lif the report of the Secretary of War, a general summary is givea of tire military campaigns of 1564 and 1865, ending in the suppression of armed resistance to the nation al authority iu the insurgent States. The op erations of the general administrative Bureaus of the War Department during the past year are detailed, aud au estimate mode of the ap propriations that will be required for military purposes in the fiscal year commencing the 30;h day of Jnne, 1866. Tho national mili tarv force on the Ist of May, 1865, numbered 1,000,516 men. It is proposed tc reduce the military e.-tablisbment to a peace footing, com prehending fifty thousand troops of all arms, organized so as to admit of an enlargement by filling up the raL'K.3 to eighty-two thousand six hundred, if tha circumstances of the coun try should require au nugumentation of the army. The volunteer force has been reduced by the discharge from service of over e ; giit hundred thoeand troops, and the De partment is proceeding rapidly, in the work of farther reduction. Tne wer estmates are re duced from $516,240,131 to $33,814,461, which amount, in the opinion of the Depart ment, is adequate tor a peace establishment ihe measures of retrenchment in each Bureau and Branch of the service exhibit a diiigeut economy worthy of commendation. Refer ence aiso made in the report to the necessity of providing for a uniform militia system, and to the propriety of making suitable provisions for wounded and and disabled officers and soldiers. The revenue system of the country is a sub ject. of vital interest to its honor and prosperi ty, and should command tho earnest consider ation of Congress. The Secretary of the Treas ury will lay before you a full and detailed re port of the receipts and disbursements of the last fiscal year, of the first quarter of the pres eat fiscal year, of the probable receipts and expenditures for the other three quarters, and the estimates for the year following the 30 h of June, 1866. I might content myself with a reference to that report, in which you will find all the informal on required lor your de liberations and decision. But the paramount importance of the subject so presses itself on my own mind, that I cannot but lay before you my views of the measures which are required for the good charac er, and, I might almost say, for the existence of this people. The life of a republic lies certainly in the energy, vir tue aud iate ligence of its cit zms ; but it is equally truethLc a good leveoue system is the the life of an organized government. I meet you at a time when the nation has voluntarily burdened itself with a debt unprecedented in our annals Vast as is its amount, fades away into nothing when compared with the countless j blessings that wiU be conferred, upon our country and upon mm by tha preservation of | the nation’s life. Now, on ihe fitst occasion j of the meeting of Congress smee the return of ; peace, it is of the utmost importmoe to inaug- i urate a ju-t policy, which shall at once be put I in motion, and which shall commend itself to j those who come after ns for its contiau mee.— i We must aim at nothing lees than tho complete ! tfracement of the financial evils that ntcessa- j rny folio ved a state ct civil war. We must endeavor to apply the earliest remedy to the ; dera- gel state of the cu reney, an t Lot shrink j Irom devising a policy which, without being oppressive to tho people, snail immediately be- ’ g>n to effect a redaction oi the debt, and, if J persisted in, discharge it fully within a dcii- j niie fixed m inber ot years. It is our first duty io prepare in earnest for our recovery fiotn the ever inoieaelag evils of j an irredeemable currency, without a sudden j I revulsioa, and yet without untimely procras j ■ tination. For that end, we must, each in our | ; respective positions, prepare the way. I hold j it the duty of of tbe Executive to insist upon ' i frugality in the expenditure ; and a sparing I ecemmy is itseit a gieat national resource. | Os the banks to .which authority hab been civpn to issue notes secured by bonds of the United States, we may require the greatest' moderation and prudence, and the law must be rigidely iaforeed when its limits are ex ceeded. We may, each one ot us, counsel onr setivo and enterprising conntrymeu to be constantly on theli guard, to liquidate debts contracted in a paper currency, and, by con ducting business as nearly as possib e on a system of cash paj meat or short credits, to hold themselves prepared to return to the standard of gold and silver. To aid our fel iew-citizens in the prudent management of their monetary affairs, tha duty devolves on us to diminish by law the amount es paper money now in circulation. Five years ago the bank note circulation of the country amounted to not much more than two hun dred millions ; now the circulation, bank and national, exceeds seven hundred millions. The simple statement of the fact recommends more strongly thau any words of mine could do, tha necessity of our restraining this expansion Tbe gradual reduction of the currency is the only measure that can save the busiuess of the country from disastrous calamities ; and this can be almost imperceptibly accomplished by gradually funding the national circulation in securities that may bo made redeemable at the pleastue of the Government. Our debt is doubiy secure—first in tha ac tuai wealth and still greater undeveloped re sources of the country ; and next iu the char acter of our insti:utions. The most intelli gent observers among political economists have not failed to remark, that tbe public debt of a country is safe in proportion a3 its people are free ; that the debt of a republic is the safest of all. Our history confirms and establishes the theory, and is, i firmly believe, destined to give it a still more signal illustra tion. Tho secret ot this superiority springs not merely from the fact that in a republic the national obligations are distributed more wide ly through countless numbers in all classes of society ; it has its root in tho character of our laws. Here all men contribute to the public welfare, and bear their fair share of the public burdens. Daring the war, under the impulses of patriotism, the men of tha great body of the people, without regard to their own com- parative want of wealth, thronged to our armies and filled our fleets of war, and held themselves ready to offer their livos for the pub’ic good. Now, in their turn the property and income of the country should bear their just proportion of the burden of taxation, while in our impost system, through means of which increased vitality is incidentally im parted to all the industrial interests of the nation, the duties should be so adjusted as to fall most heavily on articles of luxury, leaving tne necessaries of li f « as tree from taxation as the absoluto wants of the Government, econo - mically auministered, will justify. No favored class should demand freedom from assessment, and ihe taxes should be so distributed as not to fall unduly on the poor, but rather on the accumulated wealtn of the country. Wo should look at the national debt just as it is— not as a national blessing, but as a heavy bur den on tha industry of the country, to bo di3- ihugtd without unnecessary delay. it is estimated by the Secretary of the Treasury that tho expenditures for the fiscal year ending the 30tb of June, 1866, will exceed the receipts $112,194,947. It is gratifying, however, to state that it is also estimated that the revenue for the year ending the 30th of June, 1867, will exceed the expenditures in the sum of $111,682,818. This amount or so much as may be deemed sufficient for the purpose, may be applied to the reduction of the public debt, whi ;b, on the 31st day of October, 18G5, was $2,740,854,7q0. Every reduction will di minish tbe total amount ot interest to be paid, aud so enlarge the means of still further re ductions, until the whole shai' be liquidated ; and this, as will be soen from the estimates ot the Secretary of ihe Treasury, may be accom plished by annual payments even within a pe riod not exceeding thirty years. I have faith that we shall do all this within a reasonable time ; we have amazed the world by "he suppression of a civil war which wus thought to be beyond the control of anv Gov > rnenent, po we shall equally show the supe riority of our inslitudons by the prompt and faithful discharge of cur national obligations The department of agriculture, under its pr sent direction, is accomplishing much in t Jevelopitig and utilizing tho vast agricultural . capabilities of the couutry, and for informa- I tion respecting the, details of its management reference is made to tho annual report of the Commissioner. I have (.welt thus fully on our domestic af fairs because cf their transcendsnt importance. Under any circumstances, our great extout of territory and variety of climate, producing al most every thing that is necessary for the wants, and even thecomfojts of man, make ua singularly iudspefident of the varying poffcv •f foreign powers, and protects us against every temptation to “entangling alliances,’’ while at the present moment cho re establishment of harmony, aud the strength that comes from harmony, wiil be our best security against ‘•nations who feel power and forget right.”— For myself, it has been and it will be my con stant aim to promote peace and amity with all so eign nations and Powers ; and I Lavs every reason to believe that they all, without excen tion, are animated by the same disposition. Our relations with the Emperor of China, so recent in iheir origin, are most friendly Our commerce with bis dominions is receiving new developments ; and it is very pleasing to find that the Government cf that <:reat Empire manifests satisfaction with our policy, and re poses just confidence in the fairness which marks our intercourse. The unbroken har mony between the United States and the Em peror of Russia is receiving anew support fiorn an enterprise designed to carry telegraphic lines across the continent o' Asia, through hi3 dominions, and so to connect us with all Eu rope by anew channel of intercourse. Our commerce with South America is about to re ceive encouragement by a direct line of mail steamships to Ihe rising Empire of Brazil. The distinguished party of men of science who have recently left oar country to make a scientific exploration cf the natural history and rivers aud mountain ranges of that region, have re ceived from the Emperor that generous wel come wi ich was to have been expected from h:a constant friendship for the United States, and his weliknown zeal in promoting the ad vancement of knowledge.. A hope is entertain ed that our commerce with the rich and popu lous countries that border the Mediterranean sea may be largely increased. Nothing will be wanting, on the part of this Government, to extend the protection of our flag over the en terprise of our fellow-citizens. We receive from the Powers in that region assurances of good will; and it is worthy of note that a spe e'ai envoy has brought us messages of condo lence on the death of our late Chief Magistrate from tha Bey of Tunis, whose rule includes the old dominions of Cattbage, on the African coast. Our domestic contest, now happily ended, has left some trace?) in our relations with one at least of the great maritime Powers. The formal accordance o‘ belligerent rights to the insurgent States was unprecedented, and has not been justified by the issue. But in the systems of neutrality pursued by tbe powers which made that concession, there was a mark ed difference The materials of war ior the insurgent States were furnished in a great measure, from tbe workshops of Great Britain; and British ships, manned by British and prepared tor receiving British armaments, sailed from the ports of Great Britain to make war on American commerce, under tho shelter of a commission from the insurgent States. Tte;e ships, having once escaped from British por's, ever afterwards entered them in every pa t J the world, to refit, and so to renew their depreciations. The consequences of this con duct were most to the States then in r-. teiiicp, increasing their desolation and mis ery by the prolongation of our civil contest I; had, moreover, the effect, to a great extent, to drive the American flag from the sea, and to transfer much of our shipping and our com mercej to the very power, whose subjects rad created the necessity for such a change. These events took place before I was called to the administration oi tne Government. The sin cere desire of peace by which I am animated led me io approve the proposal, already made, to submit the questions which had thus arisen between tho countries to arbitration. These questions arc of such momsnt that they mud have ficrumanded the aiteolton of the great powers, and are so interwoven with the peace and inte-re?! pf every one of them as to have ensured an impart'a! decision. I regret to in form you that Great Briiaio declined the abit raraent, but ou the other hand, invited us to format'on of a j >int commission to settle mu tual claims betweeu the two countries, from vrhirh those for the depredations before men tioned should be excluded The preposi ion, In teat very unsatisfactory form, has b.eu de clined. i lie United States di i not present the subject as an impeachment of tho good faith of a Bow er which was professing the most friendly dis positions, but as involving quettions of public law. of which the settlement is essential to tho peace of nations ; and, though pecuniary rep aration to their injured citizsna would have followed incidentally on a decision against Great Britain-such compensation was not their primvy ntj jet. They had a higher motive and it was m the interests ol peace and justice to establish important principles of iuternal law. The correspondence will be placed be fore you. The ground on which the British Minister rests his justification is, substantial ly, that the municipal law of a nation, and the domestic interpretations ot that law, are tho uiwaeuro of it t duty as a neutral ; aud I feel bound to declare ray opinion, before vou and before tbe world, that that justification cannot be sustain eel before the tribunal of na tions. At the game time Ido not advise to any present attempt at redress bvacts ot leg islation. For the future, friendship between the iwo countries must rest on the bas : s ol mutual justice From the moment of the establishmen tflof our free Constitution, tbe civilized world has bean convulsed by revolutions in the interests ot democracy or of monarchy ; but through all those revolutions the United States have wisely and firmly refused to become propagan dists ot republicanism It is tho only govern ment suite! to onr condition; but we have never sought to impose it on others; and we have consistently followed the advice of Wahington to recommend it only by the careful preserva tion and prudent use of the blessing. During all the intervening period the policy of Euro pean Powers and of the United States has, on the whole, been harmonious. - Twice, indeed, rumors of the invasion of some parts of Ameri ca, in the interest of monarchy, have prevailed ; twice my predecessors have had occasion to announce the viowsot this nation in respect to such interference. On both occasions the remonstrance of the United States was respected, from a deep cons vielion, on the part of European Governments, that the system of non-enterference and mutual abstinence from propagandism was the true rule for the two hemispheres. Since those times we have advanced in wealth and power; but wc retain the same purpose to leave ihe nations of Europe to choose their own dynasties and form their own systems of government, 'This consistent moderation may justly demand a corresponding moderation. We should regard it as a great calamity to ourselves, to the cause of good government, and to the peace of the world, should any European Power challenge the American people, as it were, to the defence of republicanism against foreign interference, Wc cannot foresee and are unwilling to conaid jgr what opportunities might present themselves what combinations might offer to protect our selves against designs inimical to our form o government. The United States desire to ac in the future as they have ever acted hereto fore; they never will be driven from that course but by the aggression of European Powers ; and wc rely on the wisdom aud justice of those Powers to respect the system of non interference which has so long been sanctioned by time, and which, by its good results, has approved itself to both continents. The correspondence between the United Stales and France, in reference to questions which have become subjects of discussion bes tween the two Governments, will, at a proper time, be laid before Congress. When, on the organization of our Govern ment, under the Constitution, the President of the United States delivered his inaugural ad-< dress to the two Houses of Congress, he said to them, and through them to the country and to mankind, that “ the preservation of the sacred fire of liberty and the dcs'iny of the republi can model of government are justly consider ed as deeply, perhaps as finally staked on the experiment inUusted to the American people.” And the House of Representatives answered Washington by the voice of Madison: “ We adore the invisible hand which has led the American people, through so many, difficulties, to cherish a conscious responsibility for the des tiny of republican liberty.” More than seven ty-six years have glided away since these words were spoken; the United States have passed through severer trials than were' fore seen ; and now, at this new epoch in our ex istence as one nation, with our Union purified by sorrows, and strengthened by conflict, and established by thp virtue of the people, the greatness of the occasion invites us once more to repeat, with solemnity, the pledges of our fathers to hold ourselves answerable bqfore our fellow-men for the success of the republican form ot government. Experience has proved its sufficiency in peace and in war ; it has vin dicated its authority through dangers, and afflictions, and sudden and terrible emergencies, which would have crushed any system that had been less firmly fixed in the heart of the people At the inauguration of Washington the for eign relations of the country were few, and its trade was repressed by hostile regulations ; now ail the civilized nations of the globe welcome our commerce, and their Governments profess towards us amity. Then our country felt its way hesitatingly along an untried path, with States so little bound together by rapid means of communication as to ho hardly known to one another, and with historic traditions extending over very few years ; now intercourse between the States is swift and intimate; the experience of centuries has been crowded into a few gener ations, and has created an intense, indestructible nationality. Then our jurisdiction did notreach beyond the inconvenient boundaries of the terri tory which had achieved inpependence ; now, through cessions of lands, first colonized by Spain and France, the country has acquired a more complex character, and has for its natural limits the chain of Lakes, the Gulf of Mexico, and on the east and the west the two great oceans. Other nations were wasted by civil wars for ages before they could establish for themselves the necessary degree of unity ; the latent conviction that our form of government is the best ever known to the world, has enabled us to emerge from civil war within four years, with a complete vindication of the constitutional authority of the General Government, and with our local liberties and Stafe institutions unim pared The throngs of emigrants that crowd to our shores are witnesses of the confidence of all peo ples in our pertnanrnep. Here is the great land of free labor, where industry i3 blessed with un exampled rewards, and the bread of the work ingman is sweetened by the consciousness that the cause of the country “is his own cause, his own safety, h's own dignity.” Here every one enjoys the free use ofhis faculties and the choice of activity as a natural right. Here, under the combined influence of a fruitful soil, genial climes, and happy institutions, population has increased fifteen-fold within a century. Here, through the easy development of boundless re sources, wealth has increased with two-fold greater rapidity than numbers, so that we have become secure against the financial vicissitudes of other countries, and, alike in business and in opinion, arc self-centred and truly independent. Here more and more care is given to provide edu cation for every one born on our soil. Here re ligion, released from political connection with the civil government, refuses to subserve the craft ot statesmen, and becomes,in i"s indepen dence, the spiritual life of the people. Here tol eration is extended to every opinion, in the quiet certainty that truth needs only a fair* field to secure the victory. Here the human mind goes forth uushackeled in the pursuit of scieace, to collect stores of knowledge and acquire an ever-increasing mastery over the forces of nature. Here the national domain is offered and held in millions of separate free holds, so that our fellow-citizens, beyond the oc cupants of any other part ofthe earth, constitute in reality a people. Here exists the democratic form of government; and that form oi govern n\ent, by the confession of European statesmen, “gives a power of which no other form is capa ble, because it incorporates every man with the State, and arouses every thing that belongs to the sou!.”_ Where, in past history, does a parallel ex ist to the public hippiaess which is within th« reach of the people of the. United States?— \\ here, in any part of the globe, can institu tions bo found so suited to thtir habits or so entitled to their love as their own free Consti tution ? Every one of them, then, in what ever part of the land he has his home, must wish its perpetuity. Who of them will not now acknowledge,in the words of Washington, that “ every step by which the people of the United States have advanced to the character of an independent nation, scenrs to have been dis- ,| tinguished by some token of Providential agenc) ? Who will not join with me in the prayer, that the invisible hand which has led us through the clouds that gloomed around our < path, will so guide us onward to a perfect res- < toration of fraternal affection, that «we of this day may be able to transmit our great inheri tance, of State Governments in all their rights, of tbe General Government in its whole.consti tutional vigor, to our posterity, and they to theirs through countless generations ? ANDREW JOHNSON. Washington, December 4, 1865. XKWB SOMMItiT. The Hon. W. W. Boyce, who represented South Carolina in tho United States Congreßsj I for nearly eight years, is about to commence j* the practice of the law in Washington city. j A Maryland paper says that quite a cargo of * deluded negroes, who abandoned their homes j in Maryland durmg the third year of tho war, for freedom and felicity at Norfolk, was re cently landed on the St. Mary’s river shore, in a destitute and suffering condition; Aged and infirm negroes of both sexes, and children, constitute tha bulk of theso unfortunate immi grants. The Michigan farmers are said to have cleared a million and a half of dollars by tf\p apple trade. The noted yacht Wanderer, sold by tbo Gov ernment saveral months since to parties in Rockland, Me, is now on tho marine railway there, being rebuilt throughout. The pur chasers of the vessel, on opening her, found her rotten, and i-he is to be entirely reframed and resealed ; only the original ouisido plunk and a few timbers will remain iu her. The parties paid Government $6,600 for her, and those who have examined her say it nil cost S7OOO to repair her. She will cost her pur chasers more than anew vessel of the samo tonnage, but they will save her beautiful model. A large fire In Mobile on November 28th, destroyed eight dwellings and a stable. Loss, $40,000 and uo insurance. Robberies are quite frequent in Ohio. George W. Van Gordon, a resident of Warren, Trutn bull county, Ohio, who had recently sold a farm in lowa for sl2 000, and had returned to Warren to buy a lam in that vicinity, was robbed of all his money a few evenings since. Tha safe of Barrett & Co.’s store, at Spriug Vailey, Ohio, was blown open recently, and robbed of SIO,OOO in notes, money and Gov ernment bonds. Judge Batch of the C rcuit Court of Berke ley county, West Virginia, recently charged the Graud Jury that true bills should be ffiund any persons who have been iu actual arms against the United States, or State Gov ernment, and that the jury should present them for treason against the State of Virginia. He said that West Virginia was a sovereign State, and not a carcass thrown by a cord around the neck of the President of the United States, to ba tossed from one position to anoth r at his will. Amnesty proclamations and exe cutive clemency could not vitiate the status of West Virginia, so loug as West Virginia and her laws were not repugnant to the Constitu tion of the United States, and that those who have violate! the Conststution and statutes of the State should not go unpunished ; that her laws should be executed, and until the jury should do its whole duty in presenting murderers, horse thieves, and other disturbers of the public peace, it would not be discharged. The “ Williamantic Linen Company” of Hartford, Conn who havo now nothing to do with linen, but .the name—have a large Cotton Thread Mill in operation, of which tile profits last year were over 300 per cent. Out of their profits they built anew and immeuso mill of granite, without resorting to the’uso of a emt of their capital. Tbeir capital is now about one million. A lettor from Rio Janeiro says there is a strong tide of emigration from the United States to Brazil. Nearly all are refugees Irom the Mouthern States. One of the latest swindles is one which Ins been successfully tried in Philadelphia. Bo gus telegrams, tho printed biauks of which are ex ict imitations of those used by the telegraph companies, aro sent to persons interested in oil matters, informing them that shme misera ble company has struck a flo-ving well.— The recipient swallows the bait, perhaps tells his frieuds of his good news and the shares of the broken corporation are eagerly bought up at advanced prices. The elephant Romeo, a delicate creature, weighing only five and a quarter tons, broke loose in Philadelphia, a few nights ago, over turning and smashing up a wagon, tearing down tree boxes, uprooting a tree, and show ing fight when an attempt was made to secure him. He was finally captured, however, aud returned to his quarters. His owners will have a bill of damages to pay for his sportiveness, amounting to about 1,000. The official vote of New York city gives the Democratic majority, between the two pricipal candidates, Bar low and Slocum, 24,388, while on the whole ticket it averaged a little less than 24,000. The average majority of the Un- 1 ion ticket in the States is 30,000' An application ir to be made to (ho New York Legislature, at its next session, for a loan of $1 500,000 and a donation of 100,000 acres of land belonging to the State to aid in tho construction of the New York Northern Central Railroad across the northern wilder ness at some point on tho St. Lawrence river, to connect with the Athens Railroad at Schenectady. Next year, 1866, 13 the "centenary of the existence of mothodism in the United States, or the one hundredth year since-the organiza tion was first formed, which was afterwards ripened into what is now known as tho metho- dist Episcopal church. A Canadian lady crossed the river to Buffa lo in bridal array, the other night, to be mar ried, when tho meroiiess revenue inspector confiscated her wedding outfit on suspicion that she was a smuggler. The Honorable J. L. M. Curry has been ap pointed President of Howard College, Alaba ma, at a salary of five thousand dollars a year. The Honorable Amos Kendall, Postmaster General under Jackson, is building in Wash ington a ho use of war.hip; “the Calvary Bap tist Church,’’ at a cost of seventy-five thous and dollars, which he proposes to give to tho society of the Church, on condition that, when finished, they will furnish it. Mr. A D Horr, of Provideuee R I, had in his market recently some oysters which would delight an epicure. Fifteen of them weighed nineteen pounds. One weighed two pounds, they were taken from a deserted bed off Baw turet. It was supposed that this bed had yield ed all its treasures years ago, bht a neglected corner contained about six hundred of these large s zed oysters. Mr. Horr thinks that they must be fifteen years old. Governor Brownlow, of Tennessee, recently said that within two weeks he had received twenty-ono letters from parties at the North, asking information about East Tennessee, where they proposed to settle. Some of them represented neighborhoods who wished to go there in a body. Gottechalk gave concerts in Panama early in October, and soon after left for South America. He seems anxious to keep ahe id of the tidings of his questionable conduct in California. The prize fight between Davirand Elliott for the championship of the American prize-ring, has terminated in a fizzle, both parties agree ing to draw their own stakes, SI,OOO a side. The backers of both men, with principals, met at the office of the stakeholder, Geo. Wilkes, and arrived at this conclusion. A biff is before the Missouri Legislature to sell the State tobacco warehouse property in 8t Louis, located near tbe Lindell house, and parties are ready to pay $200,000 for it, and to erect an opera house on the site,