Indiana American. [volume], December 18, 1868, Image 1

About Indiana American. [volume] (Brookville, Ind.) 1865-1872

Image provided by: Indiana State Library

                
' V
iL. - - IM ,1 -I .1 i ' -' - "' '
ftJUUsUED KYI AT IttilMT BY
ren m e of a d v e Ii Trs ir.o.
'
Das ra, (II ia,l taa ltMrtia.,.. if IS
)aa qr., two larloe. l1 4S
aat.oi et)t
AU ial()aui (rv'aa, .r f r....4. . , J
YIARLTV", .t
On anlama, aaf.M a.rt.H.M,..TS-SS
Tkf-.-..rtfi i t fi.luaia '. to I
Uaa kaff f a sulsai rt I II
Oaa-aari.r of a law a. .... e - t a
Oaa .Ift.th f a aclaiba U aa
i ..i .1 n v. 4
,i J'.Y .'.
W.I t t ,
'.''- t
o. Ii. n I Noil am. Proprietor.
mm.
, ft 1
03et la tho National Bank Building;,
1 1 ' v . ! (fJWrd story,) i ' ;
H
- TERMS OF SU3SCRIPTI0MI
$2,30 PEU YEAH, ! .vavcb. ,! 4
$3 (JO " M IF HOT fAID 1 ADf AKCt.
r
"T II K Ü iVI 0 N , T'll EC 0 N ST I T U X I 0 N , 1N D T H E1 E NF 0 11 C EMENT OF THE LA W S
' , i ' , I 1 . , . , ...I..' '
Trtailat a4vartlisattti ikstU la alltstaii
al for la adtsaaa.
Cat. aiHlAQlsr Una It rMS4 wasa
s4 la, adiartu.Mtaii will N rai;a.4 aatU r
iltrsS oat aa skaig,! anrJ,ilj,
No poaUfe oo papers delivered, within this
vol. 7, no. r.t.v : , '
: lntOOKYfLLl'V INI)., FRIDAY, 1)KCKMIJER18, I8.
WI10LK NO. ."Gl.
.7XV .... r7
II
'
' ' - f.li .( i n . . ' !.'.. '
THE PRESIDENTS MESSAGE. !
llUvfCUUtM nf Me & nat and JJouSi
. of Hrpret4Htitivct: '
- Upoa the resssembling of Congress, 1 1
gain beootne wy duly to fill jour at
tention to the itste of iho Uoloo and its
disorganised oouditlon nnder the various
lawa which have bton passed upoo the tub
Jeot of reconstruction.
CONUtUSStONAL LEGISLATION DEMANDED.
It bmj be ssfery assumed, ea o axiom
la Iho government of lit Sulci, that tho
greatest wtong inflioted upoo a people la
-caused bj unjust and arbitrarj legislation,
or bj the unrelenting decrees of deapotio
rulers, and that the withdrawal of Injur
ioua tod oppressive measures ia tho great.
Ost good that can bo conferred upon a oa
tiou. Tho legislator or the ruler who haa
tho wi dum and ruagnsnltultj to retrace
bis steps, when couvincod of orror, will,
sooner or later, to rewarded with tho res
poet and gratitude of au intelligent aud
patriotic people. '
Our own history, although embracing a
5eriod of lea than a centurj, affords abun
lant proof that tnoat, it not all, our do
m et I'm troublca arc directly traceable to
the violutionaof llo organic lawa and ex
cessive legislation, Tbe most striking iL
lustrations of this'fict, aro furnished bj
the enactment oi'tho past three jcara up.
on tbo ijuestiun of reconstruction. After
a fair tiul, thej bavo substantially failed
aud proved pernicious la their results, aud
there venu tu be no gooj reason whj Ihej
should longer remain upou tho statute
book.
States to which th Constitution uor
rauteeit a republican form of govern me ri
hive ben reduced to military Indepen
dencies, in each of which the people have
been made auhjecttu tha arbitrarj will of
lha cooituanding geneial, although the
. C'ouMitutiou reUtrca that each Suto lull
Le repre.e itted iu Cunre, Viruinia, Minn
i)ippi and Texas ara jet excluded from
the lluusfn, and contrarj to the express
provuiona f that iuMruiuent, were de
nied particlpatiou in the recent election
for a l'revident aud Vive l'reident ot the
United S'atea.
,The attempt to place the whole f opula
tion undr the- doiuiii.tiotn of per,! uf
color iu the 8ouih, haa impaired, if notl
detlroved, the kindly relation which hud!
ptvioulj exUted between them, and mu
tual diatruit ha aruuMvd a feliu of ati
imyily which, leading iu aoni iutanrea
to cvlüiufi and bluodshed, hn prevented
that co-operation blwcett the two racca
au eenti.l to the m-cc of induatrlal en -terprUea
in the Southern Sutca. Nir
havu the inhabitant of tlw riulc alone
utf-red from the disturbed condition of
m 0 i i a growing of ConireiHional enact
tnenta. ThrtÄutire Union haa becu ai-j
- lated hj ;rve'ppreheuioia of liouhleMj
which uiiht agaiu involve the peace of;
the nation. Ita interest have been in.j
jurioualj aiTocted bj the derangement of I
buineaa and labor, aud the Conrjucnt i
waut of properitj throughout that por-
tion of the couotrj. j
, MY l'OLICY RKAMüKItTKn.
The Federal Constitution, the Majjna '
Charta of American ruht, under wlu.no,
wio and aalutarj provision we have iuc
ucafully oonductod ell our douiunlio ttud;
t'orui'U affair in peacd and iu war, and '
become a great itatioo among the power
of the earth, must aMurudlj now be adj
tfjuato to the ctilemeut of (juration
jtrowinjr out of the civil war waged for it
viodicaiion. Thia reat I'act i biude tnol
manifest bj tbo condition of the country.
Wh-u Congreca cmhled in the month
of December, 1M"5, iiil atril'e badccid;
thepiiitof rehelliou had rpeut t entile
i'uroe in the oulheru iSlate; tho peopl
had warmediiito national tile, and thiouh
out the whole com. try a healthy reaction iu
publiu aentiment had taken puce by the
application, cf the ain.ple, jet efl.ctivo
provi.iooa of tha Constitution. The Kx
eeutive Department, with the voluntary
aid of theUte; had brought the work
tf restoration aa near completion aa wa
within the rcopa of ita authority, and the
nation wan encouraged bj the proj ect of
in early and ratibfactorj adju'tinent of all
the difficulties Congre.u, however, inter
fered, and refusing to perfect tho work o
nearly consummated, declined to admit
me Qilcr a from Southern State, and adopt
ed a course of meaturea which arrested
the progreM of retcration, frustrated all
tbat bad been eucccuxlully accouiplishcd,
and after three year of agitation and atrife
has left the country further from the at
taioaentof Union and fraternal fueling
than at the inception of the Cougre&.iou
al plan of reconatruction.
'' It need no argument to ihow that the
legislation which haa produced auch con.
equencea ahould be abrogated, or else
tuado to conform to the genuine princl
plaa ofKOverouieoL Under the influence
of party pasaiona and sectional prejudice
other acta have been passed, not wariant
ed by the Conatitutioo. ' . '
ÄESTEA1NTS ON TUE EXECCT1VI COM
. TUAINED OF. ,
. Congress baa already been made famil
iar with my views respecting the Teouro
of Office bill. Experience has proved that
ita repeal ia demanded by the best inter
eata of the country, and that while it re
rnaics in force the President can oot en
join tbat rigid accountability of public of-
tioera so essential to an ho neat mod eßi-
ticnt execution of the laws. Its repeal
would enable the Executive Department
to exercise the power of appointment and
removal in tceordanco with the original
design of the Federal Constitution. The
ct of March 2d, 16G7, making appropri
ations for tbe support of tho army for tbe
year eodiog June 30th, 1S6S, and for
other purposes, contains' provisions which
Interfere withthe President's constitution
1 functions aa Commander-in-Chief , of
tbe arm and tmy to afford States of
the Union the right to protect themselves
by means of their own militia.
These provisions ahould bo at onca an
nulled, for while the first might, in times
cf great emergency, itcriouslj embarrass
the exreutivo in Ita cffoita to employ and
direct the common strength of tho nation
for ita protection and preservation, the
other contrarj to the express declaration
of the Constitution, tbat a well a rtgula
ted militia, being nccesarj to tho secur
ity cf a free Htate, the right of tho people
to keef and bear artua shall not be' in
fringed upon.
It ia believed thai the repeal of all auch
lawa would bo accepted bj the American
feople as st loaat a partial . return to tho
undamental principles of tho government
and an indication that hereafter tho Con
stitution is to bo mado the nation's sale
and unerring guide. Thav can ho pro
ductive of no permanent beneflt to tho
country, aod ahould not be permitted to
aland aa au many monuments of tho de
ficient wUdom which haa characterised our
rocent lrgialation. ' -
TUB 1-INA.NCXS.
Tho condition of our finances demands
the early an J earnent consideration of Con
grea. Compared with the growth of our
population, the public expenditures have
reached an amount unprecedented in our
history. ' The population of tbo United
State in 17Ü0 was nearly four millions
of people, Increa.ing cseu dueado about
thirty. three per cent. It retched, in
thirty-one millions, an increase ot seven
nunurca per ceni. on me population or :
I ft m .
171)0. In 18GJ, it i estimated, it will
reach thirty. light million, or an incresno
of eight hundred aud sixty-eight per cent,
in seventy-nine years. Tbo annual ox
penditurra of the Federal government
in 17U1 .200,000; in 1820. 818 200,000;
in 1830,Uli,0(K),OOO; in ISGO. (?ti3.00a,-
000; in 1805, nearly 1,300,000,000; and
in m.'j it is etuntet by the fccerMarj ot ( (he uaiioual obligations und in 1811) they
the Treasuty in Ma- 5a-t annual report lhat hud nttaii.cd the uui of f lL'7,000,OaJ.
they will 1 e:57JOOO,000 Ity enmpar Wiho and economical legislation, how
ing the puhlie dl.hurHoinonM of lSu'J, os fever,' enabled iho government ti pay the
estimated, with lhoe of 1791, U will be uiire amouut wuLiu a j eiio.l of twoiuy
seen that tho l.iorfa.e of expenditures ; jt.,,rs, and extinguishment of t ho nation
since the beginning of the government ; 1 debt tilled the land with njo'aing, and
has been h 018 per centum, whilo the in- ,
creuse ot the population lor the sauio pe
riod was only f 08 per centum. Again,
the expenses of the govommont in lSliO
the year of peace immediately preced
ing tho war wero only f 03,000 000;
while iu 130'J, the yenr of peuco three
years alter the war, it is estimated they
will he threo hundred aud seventy-two
millions, an increase of four hundred aud
eighty-nine per centum, whilo t L iiureuau
of population w4a only twcui v-nno per
rcuium for the sumo pciiod. There sta
tistic further show that in 17M ti e an
nual national cxpenso oompsied with iho
population were little ii.oie than (1 .per
capita, and iu 100 but 2 per cupita,
while iu l0D they will reach the extrav
agant sum of $0,78 per capita. It will
bo obsrrtud that all of these Statement,
refer to and exhibit tho diabureu.euta of
peace periods.
It may, therefore, bo of interest to com.
pare tho txpenditutea of the threo war
periods, the war with (reut Iirituiu, the
Mexican war and iho great war of tho ru
bellion. In 1614 the aunuul oxponsoa in
cident to the wur of 1812 reached llxir
highest amount, about 31,000,(00, while
our population slightly exceeded iu.lil
millioiia, showing an expenditure of ouly
83,0 per rapita.
iu 1817 lite expenditures growing out
of tho war with Mi'xioo reached fifty five
millions, aud tho population was about
twenty-one millions, giving only SJ.bO
per capita for the war expcin-o of that
year. In lHu'5 the expenditures called for
by the rebellion reached the vatt amount
of twelve bundled aud ninety million,,
which, cimpartd with a population of
thirty four millions, gives ?ci HO per cap
ita. From the 4th dy of -tHaich, 1781),
to the LOtli of June, 1801, the entire ex
penditurca of the government wero $1,
700,000.000, duiing that period we were
engaged in wars with (ircat Iirituiu and
Mexico, and were iuvolved iu hostilities
with powerful Indian tri bos. housniana
was purchased from France at a cot of
815.000. 000; Floiid was ceded to us by
Spain, for 3.000.000; California was sc
quired from Mexico for 815,000,000, aod
the territory ot iScw Mexico was obtain
ed from Texas for tho sum of 8 10,000,-.
iiuu. j.ariy in icoi tue war oi tue re
bellion commenced, and from the 1st of
July of that uur to tho Uütb of June,
1S03, the publio expenditure reached the
enormous apgrcgato of 8300,000,000.
Threo years of peace bavo intervened and
during that time the disbursements of the
government have successively been 8320,
000,000, 8310,000,000 and 83'J3.0)0 (UK).
..j... t"i i .a
Adding to ihcso amounts $372.000,000,!
estimated as necessary for tho h-cal year
ending the 30th of June, 109, wo obtain
a total expenditure of $1,000,000,000 dur
ing the lourycars immediately succeeding
the war, or nearly a much as was expen
ded during the seventy-two yearn that pre
ceded the rebellion aud embraced thu ex
traordinary expenditures already named.
These startling facta clearly illustrata the
necessity of retrenchment in all branches
of the public service. Abuses which were
tolerated during the war for tho prcscrvu.
tiou of the nation will not be endured by
the people now that profound peace pre
vails. The receipts from Internal Revenues
and Customs have, during the past threo
years, gradually diminished, and tho con
tinuance of useless and
extravagant
cx
j penditures will iuvolvo us in
national
' finitl.iirti.. am a 1 , ... I. ! ! . 11- .
uiu.iuyiv. j, vr eiso mate, juevnauia an in
crease of taxes already too numerous,
and in many respects obnoxious, on ac
count of their inquisitorial character. One
hundred millions annually are expended
for tho military force, a large portion of
which ia employed in tho execution , of
laws both unnecessary and unconstitution
al; $150,000,000 are required each year to
. .. . i. : . . t i i i r .
army of tax-gathetcrs impoverishes tho
hi iuo mi.rest on ins puono ueoi. Jn
nation, and public acents
Is placed by Con -
eresa beyond the control of the Kxeeutivo
divert from their legitimate purposes largo
earns of money which they eollcct from
the people in the name of tho goveru
uieot. Juditiom legislation aud prudcut
economy ran alone remedy do fort aud
avert evils which, if autfrnt J to exist, can
not fall to ditnish iheanonndonce In the pub
lic councils, and weaken tho attachment
and rospect of tho people toward their
political instltutiona. Without proper
care, the small balance which it la ctl
mated wilt remain In the Treasury at tho
close cf tho present fiscal year will not
be realised, and additional millions will
bo added to a debt which ia new enumer
ated by billions. Itia shown by the able
and comprchonsivo report of the Secretary
of tho Treasury; that tho receipt for the
fiscal year ending Juno 110 IhüH, wero
?IU5,CUS,()S3, and lhat tho expenditure
for the aame period wero fu77,U Hl.ilSi,
leaving in Iho Tre.iury a surplut of fj.'H,--l7.7yrf.
It ia estimated that tho receipt
duiing the present tlical year, ending j
Juuu UO, lHUy, will bu f :$ 1 1 ,:tl) and j
tho expenditures tlVlll,l6lJ,l70, showing a
small balance of tl.'JlO'Ji iu favor of !
the government.
Fur tho ll.cal j t ar ending Juno 30,
1870, it U Ufttiuiatud thut the receipt will
amount to iü'.'T.OOO.OOO,1 sod- tho expendi
lure to t:io3,U0Ü.(H0, liMviug an etlmu
tvd aurplu of 14,000,000.
It become proper in this oonuootion
to male a brief rctorciatj ta our public
iiidcbtcducs, which has accumulate i with
such alurmiiit; raiiitiil v. and aa.unied auch
. , .
cvluaaal proportiom. In 1761), when tho
government commenced operations under
the Vederal Constitution, it was burdened j
with an indebtedness of .73,000,000. 1
created during the warol tho Involution.
This amount haa been reduced to XlJ,-
000,000, when in 181'.', war wss declared
Hgaiust Ureal Hiitiau. The threo year'
truuttlo lhat followed Isririlv inert ased
waa one of tho grcatot event of 1'itsid-
cut Jackson's administration. Alar tbe
payment of the debt a largo sum remained
in the Treasury, which was deposited, for
sufo keepingwith the scVtrul States, on
condition that it should bo returned when
required by iho public want. In IS 10,
the year alter tho termination of an ex
pensive war with Mexico, wo found our
(.''es involved in a debt of 901,000,003,
and this was the amount owed by the
government in 18ÜO, juxt prior to tho
outbreak of the rebellion, lu tho spring
oi r bo i our civil war commenced. J.cu 1
, I
year ot ita continuance mado an no-utous ,
addition to tho debt, and vhon, in tho j
spring of 1803, the nation aticcrsat'ullj !
emerged from tho conllic; the obligation '
:d from Iho confiicl; the obligation j
government had reached tho iuc j
sum of U.bTaJOJ.yoii. Tho fee- ,
of the government had reached tho iuc 1
- m j
inuitMO nuui of -,hf ; 'JUJ IJO'J. lLo fee-,
cretury of ihe '1 reasury shows thut on tho , VM flun aCVentcen years. Thia in con
la. day ol .November, 1SG7, this amount ucction with all the other advantages de-
i.ud been reduced to -',rJl,OU, but
at tho same lime his report exhibits an
incieuse during the past your of t33.023,
Ul for Iho debt on the 1st day of No
vember lust is stated to have been J7,
l-'J.jj'J. It is tstimuted by the Secretary
thut lie relume for tho par-t month will
add to our liabilities the further sum ot
11,000.000, making a total inctcuso dur
ing thiaccti mouths of $ lO,5'JO,oau.
THK NATIONAL DKliT.
In my message to Congress of Decem
ber 4th, 1803, it wu suggested thut the
policy ahould bo devised, which, without
being oppressive to the people, would at
once begin to eliect a reduction of ihe i
debt, and if persisted in, discharge it fully
... : . i : .. .1 .!. . i ... rr l
Secretary of the Treasury forcibly rccom I
niiiiiu a ucuuiiu nuutDcr oi yeurs. i t.e
mend leirislalion of thU churactcr. and
justly urge that tho longer it ia deferred j
tho more difiicult must become ita accoru
plishment, Wo should follow the wise
pieecdents established io 178'J, and 1810,
and without further delay make provision
for the payment of our obligations at as
early a period as may bo pructicuble. Tho
fruita of their labors should bu enjoyed by
our ciiixetm, rather than used to biwid up
and austaiu moneyed monopolies in our
owu aud otner luuds. Uur loretirn debt
is alteudy computed by the Secretary of I
the Treasury at 8850,000.000. Citizens
of foreign countries receive interest upon
a large portiou of our tccuiitics, und
American tax -payers are made to contri
bute large sums lbr their support. Tho
idea that such a debt is to becomo per
manent should be, at all times, discarded,
as iuvolviog taxation too heavy to be
i borne, and the payment onco iu every six-
tceu. years, at tue preseut rate of interest,
of an amount equal to tho original sum. -This
vast debt, if permitted to become
permanent, and ir creasing, must eventu
ally be gathered into the bunds of a few,
aud enable theui to(excrt a dangerous and
controlling power iu ihe ulTairs ol'tlio gov
eminent. Tho borrowers would become
servants to the leuders the lenders the
masters of the people. We now pride
ouielvcs upon having given freedom to
four millions of tho colored race. It will
then be our shame that forty millions of
people, by their owu toleration of usurpa
tiou and profligacy, have auUeted them
selves to becomo cuslarcd, and merely ex
changed sUvo owners for now tusk musters,
in the shape of bondholders and tax ga
therers. Ho&iJcs, permanent debts pertain
I to monarchical governments, and, tending
to monopolies, perpetuities and cUjs leg
islation, are totally irreconcilable with free
institutions." Introduced into our repub
lican system, they would gradually, but
surely, sap ita foundations, eventually
subvert our governmental fabric, and erect
uiöD its ruins a moneyed aristocracy. It
is oar aacrcJ duty to transmit unimpaired
to our posterity tho blessings of liberty
which wero bequeathed to us by the
founder of lha IJepublia. and by our ex-
ample to teach those who aro to iollow lis
1 csrefully to avoid tho dangers which
threaten a free and independent people
Various plans have been proposed for the
payment of the publio debt.
However tocy msy nave varied as to tne
time aud modo iu which it should le' le-
deemed, there scoma to bo a general cou
curreuce as to tho propriety snd Justness
of a reduction io the present rate of In
terest. Tho Kecritary of the Tressury, in
his rrpott, recommends five per cent.
Congress, in a biil passed prior to adjourn
ment, on the 27ih of July last agreed up
on four aod four and a half per cent.,
while by many three per cent, haa been
bald to be an amply sufficient return for
tho imvesttnent, Ihe general Impression
aa to tho etorbltancy of the existing rato
of interest haa led to an inquiry In the
publio mind respecting tho ruosideratioa
whl'dt the government baa actually, re
ceived for ita bonds, and the conclusion
becoming prevalent that tho amount whichs
it obtained w in real money three or!
four bundled ?i-ii '.,. ttti n the uhli-
gallons. It uu uo le Uvnicd that we are
paying an tjxtrtvagaut pcrocnlugo for the
u-o of the money boirowud. whlclt waa
paper currcncvrgrcatlj depreciated below
tho value of coin.
Tho fuot is made apparent when we con
sidcr that tho bondholders receive from
tho Treasury, upon each dollar they own
in government securities, aiz per cent, in
gold, which ia nearly or quite equal to
nine per cent, in'eurrency; that the bonds
aro ttcu convtrtcd into capital for tbe
National Hanks, upon which those insti
tutions issue their circulution bearing six
per cent interest, and (bat they iro exempt
irom taxation by the government and the
.States and thereby enhanced two per cent
in tho hands of tbo holders. Wo thu
have an aggregate of seventeen per cent.,
which may bo received upon each dollar
by the owners of government securities.
A system that produce such results is
justly recarded aa favoring a few at the ex
pense of the many and Las led to the
further inquiry whether our bondholders,
in view of the Urge profits which they '
bavo enjoyed, would themselves be averse!
to a settlement of our indebtedness upon
a plan which would yield them a fair re
muneration and at the same time bo just!
to tho taxpayers ot the nation. Dar
national credit should be sacredly observed,
but iu making provision for our creditors,
we ahould not torgct what is due' to the
massca of the people. It may bo assumed
that tho holders of our securities have al.
ready received upon their bonds a larger
amount than tbrir original investment
measured by a gold standard.
Upon thia statement of facts it would
ceem ju-t and equitable that 0 per cent, ol
tho iuterest now raid by tho irovcruuient
should be applied to the reduction of the
rii, rir.nl ,.. ......, n.,i i...... .it.
i')i a) vv Uli-Bill Ii Uli tUniaillAJTIltiaVt
which, In sixteen yeararand eight months,
W0UJ liquidate tho entire national debt,
Six per cent, in col 1 would, at rrescnt
ruiC8. L enuif tif ulna r.m. U r.
rillCS( I, equal to nlue 4 cr cent,
r, ncy.arid c.'iuivaUnt to the pay'i
tho debt one and a half limp. In a
,. 1X, ,';,.Un ti,. ... ...-., ,.r
t eMw vMwnaiivus ii aas i'aiiufu VI
tho 'lUM Ans Lir:main . rrn.ftM
1 1 iaw it v u
lived from their investment; would afford
to the publio rrcditoia a fair and liberal
compensation for the use of their cupitul,
and with this they ahould be astisGod.
The lessons of tho past admonish tho len
der that it in not well to be over anxious
iu exacting from the borrowers rigid com
pliance with tho letter of tho bond.
If provision be made for tho payment
jof tho indebtedness of tho government In
tho manner suggested, our nation will
rapidly recover its wonted prosperity. Its
interest rcquiro thut some measures should
be taken to release tho largo amoffht of
capital invested io securities of the gov-
crument.
It is not now merely unpro
ductive, but in taxation annually con
sumes $150,000,000, which would other-
w' e used by our enterprising people
10 adding to tho wealth ot the nation.
Vur (,,u,u)rcoi which at one timo success.
miiy rivaicu mat oi mo great maritiiuo
powers, has rspidly diminished, and our
industrial interest are iu a depressed and
languishing condition. The development
of our inexhaustible resources is checked,
aud the fertile Held of the South are bo
coming waste of want of means to till
them. With the relcaso of capital new
life would bo infused into tho paralyzed
energies of our people, snd activity and
v'(?r imparted to every branch of industry.
wur peopie nccu eucouratment in meir
ciTorts to recover from tho eflecta of. the
rebellion and of injudicious legislation,
and it ahould be the aim of the govern
ment to stimulate thero :by the prospect
of an early release from the burdens which
impede their prosperity. If we can not
take tho butdeus from their shoulders, we
should at least manifest a willingness to
help thefu to hi it thenlV In referring to
the condition of tho circulating medium,
I ahall merely reiterate substantially that
portion of my last annual message which
relates to tliat subject. Iho -jsoportton I
which tho currency of any countrc ahould i
bear to the whole value of tho annual
produco circulated by its meaus, is a ques
tion upon which political economists hsve
not agreed, nor can not be controlled by
legislation, but must be left to the irrevo
cable 'laws,' which everywhere regulate
commerce and trade. The circulating
medium will ever irresistibly flow to those
fioiots where it ia in greatest demand. Tbe
aw of. demand and supply is a unerring
us that, which regulates the tides of the
ocean, and indeed currency, like the tides,
has its ebbs and fluws throughout tbo com
mercial world.
At the beginning of tho rebellion tbe
bank uoto circulation of the country
amounted to not much more than two
hundred millions of dollars. Now the
circulation of the National Bank notes,
and those known as legal tenders, is near
ly levon bündred millions.' Whilo it is
...
urged by some tbat this amount anouid
bo increased, others contend that a deci
ded reduction is absolutely esieutial to the
best interests of the country. In vie of
theso uivcrxe opiuuns, it may bo well to
i ascertain the real value ot our 1 psper
issues, when compared with a metallio or
convertible currency. For this purposo
lot u ioquire how much gold and' silver
could be purohasoJ by tbo seven hundred
millions of paper monej now in circula
tion, l'robably not tnore than half the
amount of tbo latter, showing lhat when
our paper curroncy ia compared with gold
and silver, ita commercial value is com
prised into $350,000,000. This striking
fact makes it tho obvious duty of the
government, as early aa may be consis
tent with tho principles of sound political
economy, to take auch mcssure aa will
enable tho holders of ita notes and those
of tho National lianka Io convert them
without losa into specie or ita juit alent,
A reduction of our paper tiiculotlng
medium may not netessarilj follow. This,
liowever, would depend upon tha l,w nf
demand and supply, though it should bo
borne In mind that by miking legal fete j
der and bank notes convertible Into coin;
or lis equivalent, their present specie value
in" the hand of their holdeis, would bo!
enhsuced 100 per cent. Legislation for
the accomplishment of a result so desira
ble ia demanded by tho highest publio
considerations. The Constitution con
template that the circulating medium of
tho country shall bo uulform in quality
and value.
At the time of the formation of that in
strument Ihe country bed just emerged
from the wsr of the Revolution and waa
suffering from (bo rffoots of a redundant
and worthless paper currency. The sage
of that period weie anxious to protect
tbeir posterity from tbo evil which tbey
themselves had experienced. Hence, in
providing a circulating medium, they
conferred upon Congress the power to coin
money and regulate tbe value thereof, at
the same time prohibiting Ihe 8utcs from
making anything but gold and silver a
tender iu payment of debts.
Tho anomalous condition of our cur
rency is iu striking contract with that
which was otiinally designed. Our cir
culation Dow embraces, first, tho note of
tbe National lianka, which are made re
ceivable for all dues to the government,
excluding imports, and by all its creditors
excepting in payment of iuterest upou its
bunds and tbo securities theuiseUcs.
Second', legal tender oi tes, issued by. the
United States, sTnl which the law require
shall bo received as well in payment of
all debts between citiiens as of all gov
emment dues, excepting imports; and
third, gold and silver coin . Uy tho opera
tion of our present system of finances,
however, the metallio currency, when col
lected ia reserved only for one class of
government creditors, who, holding its
bunds, rcoii-annually receive their iuterest
in the coin from tho National Treasury.
There ia no reason which will be accepted
as satisfucturj bj the people, why those
who defend us ou the laud and protect us
on tbo sea; tho pensioner upon the gratitude-
of tbo nation, bearing the senrs and
wounds received whilo iu tbo service; the
public servants in tbe various depnrtmcnts
of tbo govcrnmeot; iho farmer vho r-up
plies the soldiers of the si my and the sail
ors of the navy; the artisan who toils in
tho notion's workshops or tho mechanics
and laborers, who build ita edifices and
construct ita forts and vessels of war,
should In payment of their just and hard
earned dues rcccivo depreciated pnjcr,
whilo another class of their countrymen,
no more deserving, aro paid in coin of
gold and silver. Kqual and exact justice
requires that all tho creditors of tbe gov
ernment should be paid in a currency
possessing a uniform value. This can
only be accomplished by tho restoration of
the currency to the standard established
by thu Constitution, and by thia means we
would remove a discrimination which may,
if it has not already done so, do much to
create a prejudice that may become deep
rooted aud widespread, and imperil tbe
national credit.
Tho feasibility of making our currency
correspond with the constitutional stan
dard may be seen by a reference to a few
facts derived from our commercial statis
tics. The aggregate product of precious
metals in the United States from 1819 to
1807 amounted to 81,171,000,000, while
for tho same period the net exports of
specie wero 8741,000,000. This shows an
excess of product over net exports of
8133,000.000. They are in the Treasury
81OÜ,107,0S5 in coin; in circulation in the
btates on the Pacific coast, about $40,000,
000, and a few millions in the National
and other banks; in all leu than 81C0,
000,000. Taking into consideration the
specie in the country prior to 1S40, and
that sin co 1SG7, and wo have more than
threo hundred millions not now accounted
for by exportation or by the returns of
the Treasury, and therefore most probably
remaining in tbe country.
These are important facts, and show
how completely tbe inferior currency will
supersede the Letter, forcing it from cir
culation among ihe masses, and causing it
to be exported as a mere article of trade,
to add to the money capital of foreign
lands. They show tho necessity of re
tiring our paper money, that the return of
gold and ailver to the avenues of trade
may be invited, and a demand created
which will cause tho retention at homo of
at least so much of the productions of our
rich and inexhaustible gold bearing fields
as may be wutlicient f;r the purposes of
circulation. It is unreasonable to expect
a return to a aound currency ao long as
the government and banks, by continuing
to issue irredeemable notes, fill tho chan
nels of circulation with depreciated paper.
Notwithstanding coinage by our mints,
ainco 1843, of $874,000,000, the people
are now strangers to the currency which
was designed for their uses and benefit,
and specimens of tbe precious metal bear
ing the national device are seldom seeu,
except when produced to gratify tho in
lerest excited by their novelty.
If depreciated paper is to bo continued
as the permanent currency of the country,
and all our coin is to becomo a mere arti
cle of traffic and speculation, to the etc
hauooment of the price of all tbat ia dis
pensable to the comfort of the people, it
will be wise onoonomy .to abolish our
mints, thus saving the .nation the care
nd expense incident to auch establish
inents, aud let our previous metals bo ex
ported In bullion.
The time has come when the govern
merit and National Hank akoiid be tr
quired Io take the ruo.t efficient 'rp, and
make all nrttassry arrangements for the
resumption ofspeci payn.ent. Let specie
payment once be earnestly Inaugurated by
Ihe government snd banks, sod the value
of the piper titculatlon would directly ap
proximate a specie standard. Specie pay
ment having Leen resumed by the govern
ment and banks, all notes or tills of paper
issued by either of a less denomination
than twenty dollars, ahrnld, by law, be
excluded from circulation, so that the
people may have the bentfit and con.
tenience of gold and silver currency, which
in all their business tiansaetiona, will be
uniform in value at home and abroad.
l.cry man of pwpvrtT Vr liostryfevyrj
uuu who desires to preserve what he hon
estly possesses, or to obtain what be can
honestly earn, has a direct interest in
maintaining a safe circulating medium,
such a medium aa shall bo real and sub
stantial, not liublo to vibrate' with opiic
ions, not snljcet tu be blown tip or b'owu
down by the brutes cf j cculatiou, but it
is to be msde secure.
A dUoidcrcd currency Is one of ihe
grtstest of political evi's; it uudrrminea
the virtues mcossry for ihe support ol the
social syniciu and encourages properties
dcstiuctivo of its bsppinesa. It wars
ogsiust industry, frugality and economy,
aud it fosters llo evil s; irit of extravag
ance and speculation, it baa been asser
ted by one of our profound and most gUt
rd statesmea that of all ihe contrivance a
for" cheating the laboring classes of man
kind, uone haa been more effectual thau
lhat which deludes them with paper mon
ey. This is Ihe most cflectusl of inven
tions to fertilize tbe rich man's fields by
the sweut of the poor n an's brow. Or
dinary tyranny, oppression and excessive
taxation Uar lightly on the happiness of
the mass of the commuuity, compared with
a fraudulent currency and lbs robber lea
committed by dcpuciatcd paper. Our
own history has recorded for our instruc
tion enough, and more than enough, of!
Iho demoralizing tendency, the injustice
and the intolerable oppression on the vir
tuoui and well disposed, of a degraded
paper currency, authorized by law or any
way countenanced by tho government.
It is one of the most successful devices
In time of peuco or wsr, of expansion or
levolutions, to accomplish tbe transfer tf
all the ptecious metals fioni the great ti.uss
of the people iuto the hand of the few,
whero they are bearded in secret places,
or deposited under bolte and bara, while
the people are li ft to endure all tbe inecn
venicticcs, sscriliees aud demoralisation
resulting from Iho use of depreciated and
worthless paper,
DEFAhTUENT OF THE INTERIOR.
Tho Secretary of iho Interior, iu bis
report, givea valuable information in le
fcirnro to the interest confined to the
turmion of bis iJcpartrueut, aud re
views the operations of the Land Office,
Pension Office, I'utent Office and the In
dian llurcau.
During the fiscal year ending June 30,
180S. 6,055,700 acres of public laud were
disposed of. Tbo entire cash receipts of
the (icneral Land Office for the same
period were $1,032,1 15, Icing greater by
$'J31,8S3 than the amount realized fiom
tho same sources during tho previous year.
The entries under the Homestead law
cover 2,328, D'J3 acros, i,eaily one fourth
of which was taken under the act of June
21st, 1S00, which applies only to the
States of Alabama, Misaissippi, Louisi
ana, Arkansas and Florida.
Oo the 30th of June, 16C8. 1C9.C43
names weie borne on the pension rolls,
and during the year ending on that day
the total amount paid for pensions, includ
ing the expense of disbursement was $24,
010,082, being $5.301025 greater than
that expended for like purposca duiing
the preceding year.
During the year ending the 30th of
September last, the expenses of tbe Patent
Office exceeded the receipts by $171, in
cluding reissues and designs. 14,153 pa
tents were issued.
Treaties with various Indian tribes have
been concluded, and will be submitted to
the Senate for its constitutional action, i
cordially sanction the stipulations which
provide for reserving lands for the various
tribes, whero they may bo encouraged Io
abandon their nomadio hnbits, and engage
in agricultural and industrial pursuits
This policy, inaugurated many years
since, has met with signal success, wher
ever it has been pursued in good faith,
and with becoming liberulity, by the Uni
ted States. The necessity for extending
it as far aa practicable in our relations
with the aboriginal population, is greater
now than at any preceding period. While
we f'uuish subsistence aud instruction to
the Indians, aud guarantee the undistur
bed enjoyment of their treaty rights, w
should habitually insist upon tho faithful
observance of their agreement to remain
withiu their respective reservations. This
U the only mode by which collisions with
other tribes, and with the whites, can. to
avoided, aud the safety of our froutier set
tlements secured.
The companies constructing the railway
from Omaha to Sacramento have been
most energetically engaged in prosecuting
the work, and it is believed that the lino
will be completed before I lie expiration of
the next fiscal year. The six per cent,
bonds issued to these companies amount
ed, on the 5th tnst., to $11,537,000, and
additional work had becu performed to
the extent of $3 200.000.
The Secretary of the Interior, in Au
gust last, invited my attention to th re
port of a government Director of the Un
ion l'.citia llailroad Company, wi.o had
been specially instructed to examine the
location, construction and equipment of
their road. 1 submitted, for the opinion
of the Attorney Oeneral, certain question
in regard to the authority of the Kxecu
live which srose upon thia report, and
those which had from time to lime been
picacuted- by the Commissioners epjoiol
'rd In rxsmine
h.ve HCfUllv
thi and other lines, and
sulmit'fda ststrmfntbf
their inutilpatioiis, of which the I'port
ni li e Sn rslaty of tbo Inttiior furnishes
specifij information. . .
1 fit HAH i rrAATMIKT. ' i H ii
The rr ft rt of the hrctrtiry of tVtrr
contains iiilormatH'ii of interest and' lai
pdtatite n coin. g IN several bureaus of
the War t artaen! and the equations
of ibe aro j.' lbs strength of ovr amli
tary (t ree naj the 10'h cf Frplatntvr last
was 48 tOO n-fti, and it ia computed thai
thia tiumltr will be dsrirased to 43 03.
Il ia the jlnion of the tverctarj of War
thai withiu ihe next year a eoesiJerabU
diminution of the ialsntrj fores nsaj U
niada without detriment to the interest o
the country, and In view if the yrsat ex
pense altfiiuWg the mtlksry f esse )!.
li.hmenl end Ihe absolute nrressity of re."
treiuhmeiit, whetrwf it csn be applied, i
ia hoped lhat Congresa will sanction the
reduction hielt his rporl itceinmrnd.
While in I mo hi goo nun it tie latioi
10 472,000, it-.uui I el t bi COO ia iina
ltd at Mvrt.sif lor tU tsppi'ii of the u.y
duiiit; its Ureal jar end in- June JO, If 0. ,
Tl siiU'Bi of lha War lit j n rin i) i l.r ihe
Us fi.iaj trait f, r t',7, Vi Hit,
4C.I, and ft.r IKH, 75 'ilj.f.lJ. The actual
ri it.liitir, rfanr-ir lit .u. r-Mtoda- ts.ra
ir.,..cM.,l) Vi i'-I 4l.i,.d mriM. 't he
en I it a' stttmUtrd in Drttn Ur last. (Vir 1 1
tiial )r i i.Uii't: June 30, lH 9, 7,12,
"( ti 'i Im I -itditurr It.r ll. tint tjuari.r
fo.lity tli n of 8'pitmUr U-l, 1 1 e 27,
'1 1 ill 17. and ilia Sicitiar) ol tU Tca.-rf
Iii Cii OUo.ui 0 a. am-in. I loch will rt
OuUly bv rqiid dt'iifrf lha remaining lhre
qtiaiitrs, il il.rie sliould la no raduotioii nf
tut aru.), n.akii g it krr:at ix ihe
yr toiiui.lJ in Str. of ,il, 0(1(1,000,
Ihe ditleiei ev Uiarsu the rtiiu.ais and is
p-iitlilaira tur ihr tint lue I Jrart, vliife
liftv lit. it l auf l, is aus ltii io V" 175,
4) 343 for this sinkU biaiab cf putl.c trr
tit a.
TUE NAVT !EFARTM EKT
The licportofthe Secretary file Navy
exhibit the oj eratiuns of that drparimen
and of the navy duiing the year. A con
siderable itduitiob of the loit-e Las been
Ifecttd. Theio are foitytwo vessel?,
Csiryitg 411 f uns, in the six rquadrons,
which ate astatdishrd in different parts of
the wmld. Three of these vessels are re
turning to the United States and four are
used as store ship-, leaving the actual
cruising force thirty five vessels, carrying
U5C guns, 'lie total number of vessels in
the navy is 200, mounting 1 743 guns,
l'.ighty cue vemls of every description
aru iu use, aimed with C'JO guns. The
number of men enlisted iu the service, in
cluding apprentices, l.ss been reduced Io
8,5u0. An iuerease of navy yaid faoilitica
ia itcommeiided aa a tncasuie which . will
iu the event of war Lo promotive of econ
omy and rtturiiy, A more thoroagh andi
s)stematio rurtey of ll o North Tacifio
O.ean is sdtb-td, in view of our recent ac
quisition, our expanded comtnerco and tho
increasing intercourse between tho P.cifio
States and Asia. 1 he naval pension fund
which consist cf a moiety of Ihe avails of
prises espturcd during tho wsr, s mounts
lo 14,W)(,K0. . ' " ' '.
Kxcentiuu is taken to the acts of tha
2ltd of July Ian which reducfsthe interest
on the fuud Laned tu the government by
the Sei-ielary as trustee, to 3 per cent., in
stead ot 0 per cent., which was originally
stipulated wheu the investment was made.
Au luituüuirui of the pension 'law lis
suggested to remedy omissions and defects
lu existing enactments. The expeedi-J
tores of the depsitment during the ' last
fiscal year were 2i, 120,004, aud the . esti
mate lor tbe coming year amount to 2(i,
y'J3,:JU. i
TUE POST MTICE, I
TL I'osi nasi er General a report furnish
as full and clrar xbibit of Iba tqrstiotia mm!
coiiditiou ( f Ilia postal eric". Tbaoidii ai
postal rsnius for lb- ticl )ear eudiug Juue
;J0 h, ItbS, äs lC,2'j:,lit'U, and lb to al tx
endiiurss, eiubiacini; all lbs strvice tor aLicb,
seieial Mpropna' ions bua l e.u uiad by Con!
git, atnoumed lo Ti,"lii,!H2, koaririf an ex-
cess ol p n JiinitK 0,4J7.Dll. il-daci-IHK
1 1 o iti in expi-nditurts the sum of 56,'
5Jj, Iba amouiir of apprepriaü. ns kr ocrali,
siau)sbi a and other special s.rvu-a, lbs exa
Cfss of k, udliure w.s 4,5ll,4Ct U usinf
an uiivi) enJed balance in tba Tr. aiur- ,(
3 bOo.dUO in I lie ucuul auin for which a spec
ial apiopi lation i rriuirtd t mtcl lb d
tieieiiiy, i 7 4 1 ,GG. 'Ibetsoiri wtieh pro
duied li.u Iaig4 itf of e-inditura . o-r
rcttnu. i0 iL rtoiaiiuii ol -rvic. iu lha
11 iu.ureiil bUtesanU Iii putting into Op,
eiaiiou .t ih n ttitn-f eiablitbaJ by act
ol' dilute, wlntb bad amounted wuhin the
lusi io)-.i ai.d a ball' io aooul 4S,7u0 mile:,
equal to mora than one-thud of the hole
auit.oiil ot ibe st-ivica l lha e'osa of ihe war.
New postal convcttiooa with Great
lltiuin, S'orih (Jermauy, Uelgium.' Tho
Neihcihuds, Switzerland aud Ilaly ro
sptciively have bcuu carried into ctleci.
Under their provisions important improve
mculH have riu' el in recuced rmti of iu
ternalional postage and cuiatcd- facilities
with Eiu quan couuttie. '1 Le ost of the
United Mate Tran Allantie ocean mait
service mhvv Janusrj 1, lbj3,. has teen
biely limited unoer tbe cperaliuu ol
these Uv ;uo ttion, a reducMuu ofove
one half hating teeu tf.ecird under tba
new air.tieii.eut ioroceau mail stcamsbip
t-ervii-H, which weut into tflett en thatdste.
The aiteuiiuu ol (.Vngnsi is invited ini
the practical suj:ii stitH.-and 1 1 ornuien Js
liuus uuJe in this rtpvit by il. l'oituiai
tcr (.itf.ttol.
Ol E roRlICl.N RELATIONS. . - T
1 No iuportant qutstioo has nrcarred
during the 1 sat ye.r in cur sceusloute
cordial and friendly ititercovtse with Uoitt
ltica, Guatemala, Honduras San Salvador"
Frauce, Au-4ra, llelium, Sw'uscrlaid,
Portugal, lie NclbeiUtiis, Deotuark
Cswedau and 'oiway, ltome, (iretcr;
Tuikey, Feuia, l'gypt, Lileiia, Mor
oeco, Tripoli, 'l um, Mose-t, Siawi
lluriitu mil A1advscsr. 4'rrMst rsls
tiobs lut ulo lieu Uiaitilaibed wil)V
Argeutine aod the Uiicntsl l.epublics,
THE TKUkULfc WITH l'A RAUl'. Y. .
The ex pressed wi-di of IVvgrctH- Jkat
our national good oOice m'gbt be tender
ed to these Republic, aO to llri)
and i'aruuuy, lor bliwiu l-i au ctil