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Daily Ohio statesman. (Columbus, Ohio) 1855-1870, December 10, 1868, Image 2

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jp Statesman.
E. H. EflflFXRI&Rt i
B. 1'LOVUi . I
DEC. 10.
The President's Message.
. we
f of the Ohio Statesman, President John- '
- son's last Annual Message. It. Is a well ,
written document. Its arraignment of
- Congress for Its unconstitutional and ty-. i
rannical legislation with reference to ten j
States of the Union, and the expose ot the !
profligacy that characterized the conductor!
the War and ; the -"administration -of'
the . Government by the Republican -party,
is crushing,1 and we do not wonder j
- that the Radicals In the Senate felt their j
dignity so much outraged that they ad-
journed pending the reading of the mes-
sage. ' In this adjournment they displayed ;
- contemptibly mean spirit' .- -' i
V Wedo not concur with the President In ;
'regard to the ' resumption of specie pay-'
meets. We are as much In favor ot a pe-!
cie currency as anybody can be ; but with !
the present Public Debt contracted on the
Greenback, or paper currency basis,;
': weighing oppressively upon - &e people,
we tbluk the time has not . yet come for a
STesoinptloii'oir specie payments. ' In the j
main, the message is very satisfactory, and
as such we commend it to the attention of ;
thereader. :--' i--' -- '-"' j
Fire in Zanesville—The Water
Works Safe.
WM.BicK'e'Tannery, W'Zanesville, was'
burned on Monday nighW, The light of the :
burning building illuminated, the . whole j
eastern part, of the city, and with It the
famed Water Works Jteservotr; the burnt
tannery bejng at the base of the hill on
which the Water Works are located. - Much;
property was saved", the. Courier says, by j
throwing It out of the window, before the
progress of the flames reached where It ;
was stored. This ..was ' fortunate. "The!
i Water Works escaped without injury, -and j
Zanesville can still brag of their immensity, i
tt not of their value In saving property. j !
Fellow Citizem of (As- Senate and Mouse of j
Jlepretenlatioes J r',; ,c" ' '
Upoathe reassembling of Congress, It
again becomes my dntv to call your atten- :
1tlod to the state ot the Union and disorgan- ,
. Izett -condition v-under : the- various laws
which have been passed upon tbesubjectof
: reconstruction. It may be saleiy assumed
M ib. axiom in the-government ot the
"-States, that the greatest - wrongs inflicted
upon a people are caused by unjust and
arbitrary legislation, or by the unrelenting
decrees of , despotic . rulers, .and that the
timely repeal' ot Injurious and oppressive
measures is the greatest good that can be
conferred upon, a nation. ; , !
The legislator or the rnler who has the
wisdom, andV magnanimity, to retrace his
steps when convinced of error, will, 'sooner
or later, be rewarded- with the' respect and
gratitude of intelligent and patriotic peo- '
pie. - " - - ' ::-; : 'J '
' ; Onr own history, although embracing a
; period of less than a century, affords abun- j
-ciant prooi mac most,u not an 01 our Domes
tic, troubles, are directly traceable to viola
tions of the organic law and excessive leg
islation.. The most striking illustrations ef
this fact are furnished by the enactments of
-the past three years upon the question of
reooBstrnctiop. -After a fair trial they have
substantially tailed and proved pernicious in
-their results, and there seems to be no good
reason why they - should longer remain
upon the statute book. States to which the
Constitution guarantees a Republican form
of Government have been reduced to mili
tary dependencies, in each ot which the
people have been made subject to the arbi
trary will o the commanding General.
- Although the Constitution requires that
each State shall-tx' represented ia i Con
gress, Virginiar Mississippi and Texas are
yet excluded from the houses, and contra
ry to the exoress provisions of that instru
ment were denied participation in the recent-election"
for a President and Vice
President of the United States.. : .,. -,
' The attempt to place the whole popu
lation under the domination of persons of
color in the South, has impaired, if not de
stroyed the kindly relations that had pre
viously existed between them, and mutual
distrust has rendered a feeling of animosi
ty, which, . leading in some InsUnces to
collision and bloodshed, has prevented that
tso-operation between the two races so es
sential to the success of industrial enter
prises in the Southern States. Nor have
the-inhabitants of those States alone suf
fered from the disturbed condition of af
fairs growing out of the Congressional en
actments; '-The Union has been agitated
by grave apprehensions of troubles which
might again involve the peace of the na
tion. -Its Interests have been injuriously
affected by the derangement ol business
and labor,and the consequent want ot pros
perity throughout that portion ot the coun-
try-"i -i : :.!? -:
' The ' Federal Constitution, the ; magna
chart a of American rights, under whose
wise and salutary provisions we bavesucw
eessfully conducted all e-ur domestic and
foreign affair?, sustained ourselves In peace'
and in war, and became a -great nation'
among the powers - of the earth, must as--so
redly now be adequate to the settlement
of the questions growing out of the civili
war, waged alone lor its vindication. This
great fact Is made most manifest by the'
condition of the country. .. ..
When Congress assembled in the month
ot December, 1865, civil strife had ceased,
the spirit of rebellion had spent its entire
force in the Southern States, the people had
warmed laWnatloodl lite, and throughout
the whole country .a healthy reaction ia
public sentiment bad taken place by the
application of the simple, yet effective, pro
visions ot the Constitution. The Executive
Department, with the voluntary aid of the
States, had brought the work of restoration
as near completion as wa&witnin the scope:
of its authority, and the nation was encour
aged by the prospect of an early and sat's
factory adjustment of all its difficulties. ' ,
Congress, however, intervened, and re
fusing to perfect ; the work so nearly con-'
summated,deciined to admit members from
these States, adopted a course of measures
which arrested the progress of restoration,
frustrated all that had been successfully
accomplished, and alter three years of agi-',
tation ana strne nas .ieic me country far
ther from the attainment of Union and fra
ternal feeling than at the inception of the
Congressional plan of reconstruction. It
needs no argument to show that the legis
lation which has produced such codsc--;
quencea should be abrogated, or else made
to conform to the genuine principles of the
Republican Government.
Under the influence of party passion and
sectional prejudice, other acts hare been
nassed not warranted by tbe Constitution.
Congress has already been made familiar ,
with my, views, respecting tne tenure ot
office bilb - Experience has proved that its
repeal is demanded by the best interests of "'
tne country, sua mat wuiiuit, remains in
force the President cannot enjoin that rigid
accountability- of public officers so-essen
tial to an honest and efficient execution of
the laws. Its revocation would enable the
Executive Department to exercise the
power of appointment and removal, In ac
cordance witn the original design of the
Federal Constitution. v , , . . -
. The act of March 2, 1887, making appro- "
priatlons ior tne supjjuri, tuu army lor
the year ending June. 30, 1888, and for oth
er purposes, contains provisions which in
ter le re with the President's Constitutional
unctions as Commander-in-Chief ot the
army, and denies to States ef the Union tbe
right to protect themselves by means of
their own militia. , - ,
These ' provisions should be at once an
nulled, for while tbe first might in times of
great emergency enoasiy --embarrass tne
Executive in efforts to employ and direct
tha Ammmt-'strength Of tne nation tor its
srotectlon and preservation, the other is .
. . . . i -s.n liUiliiKtlnn r.f th.'
contrary to umj ,v.wu v .ho
Constitution, that a well regulated militia
being necessary, 1 to tho security of free
State, the right ot the people to keep and
bear arms shall not bo Infringed.1 ' It is be-"
lleved that the repeal of all such la wawpula .
be accepted by the American people as at
least a partial return to the fundamental
principles of the Government and an indi cation
that hereafter "the Constitution is to,j
be made the nation's safe and - unerring
guide. -They can be productive of no per
manent benefit to tbe country, and should
not be permitted to stand as so many mon
uments of the deficient wisdom which has
sharacterizi d our recent legislation.
- The condition ot our finances -demands
he early and earnest consideration of
Congress. Compared with the growth of
our population the public expenditures
have reached an amount unprecedented in
our history.
The population of the United States In
1790 was nearly four millions, the people
increasing each decade about 33 per ctnt.
It reached, In 1860, tbirty-one millions, an
Increase of sevi hundred percent, on the
population in 1790. In 1SG9 it is estimated
it will reach thirty-eight millions, or an
increase of 868 per cent. In 79 years. The
annual expenditures of the Federal Gov
ernment in 1791, were tour million two
hundred thousand dollars; in lS20,eighteen
million two hundred thousand dollars; in
1850, forty-one million?; In 1860, sixty
three millions; In 1S65, nearly thirteen
hundred millions: ana in 1SCSL "it is esti
mated by the Secretary of the Treasury,
in his last annual report, that they will be
three hundred and seventy-two millions.
Br comDarinir the nuhlic disbursement
of 1869, as estimated, with those of 1791, it
win De seen that the increase of ex pendl
tures since the beeinninar of the Govern
ment has been eight thousand six hundred
ana tun teen per centnm, while the In
crease of the population for the same pe
nou was only eight hundred ana sixty
t ight per centum. . Asrain. the expenses of
the Government In I860, the rear ot peace
immeaiateiy preceding the war. were on
ly sixty-three millions, while in 1869, the
year ot peace three years after the war, it
is estimated they will be three hundred
and seventy-two millions, an increase of
lour hundred and eiarhtvt-ntne tier centum
while tbe Increase of population was only
cweniy-one per centum lor. the same pe
riod. The statistics further show that In 1791
the annual ' national expenses, compared
with the population, were a little more
than one dollar per capita, and in I860, but
two aonars per capita, while in 1869 they
will reach the extravagant sum of nine
dollars ond seventy -eight cents per capita,
. it win De observed that all or these state
ments exhibit the, disbursements of peace
periods. It may therefore be Intesting to
compare the expenditures of the three war
periods, tbe war with Great Britain, the
alexlcanwar and the-war of the Rebehon.
In 1814 the annual expenses incident to the
war of 1812 reached their highest amount,
aoout thirty-one milrfQns, while our popu
lation slightly exceeded eight millions,
snowing an expenditure of only three dol
lars and eighty cents per. capita. In 1847
the expenditures growing out of the war
with Mexico reached firty-flve millions,
and tbe population about twenty-one mil
lions, giving only two dollars . and sixty
cents for per capita for the war expenses of
mat year, in lboo tne expenditures called
tor by ' tbe Rebellion, reached the vast
amount ot twelve hundred and ninety mil
lions, which, compared with a population
of thirty-four millions, gives ,thirty-eight
dollars and twenty cents per capita. ,
From the 4th day of March, 1789, to the
dutn ot June, istjl, the entire expenditures
of the Government were seventeen buna red
millions of dollars. During- that period
we were engaged in wars with Great Brit
ain' and Mexico; and were involved In hos
tility with hostile Indian tribes. Louisiana
was purchased from France at a cost of
niteen millions ot dollars. : x lorida was
ceeded to us by Spain tor five millions. Cali
fornia was acquired from Mt xico for fifteen
millions, and the territory ot New Mexico
was , obtained - from Texas lor the sum ol
ten millions. ..
: Early in 1861 the war of the rebellion
commenced, and from tbe first of July of
that year-to the 30th ot June, 1865, tbe
public expenditures reached the enormous
aggregate or thirty tbree buudrcd million
Three years of, peace have intervened, and
during that time the disbursements of tbe
Government have -successively been five
hundred and twenty mtlIions,threehundred
and forty-six. millions, and three hundred
and ninety-three millions. Adding to
these amounts three hundred and seventy
two millions, estimated as necessary for
tne fiscal -year ending the 30th. ot June,
1S69, we obtain a total expenditure of six
teen hundred millions of dollars during
the four years immediately succeeding the
war, or nearly as much as was expended
during 'the 'seventy-two years' that pre
ceded the rebellion, and embraced the ex
traordinary-expenditures already named
' These startling facts clearly illustrate tbe
necessity of retrenchment in. all branches
of the public service. Abuses which were
tolerated during the war for the preserva
tion of .the nation will not be endured by
the-people, now that profound peace "prevails.-
The receipts from internal revenue
ana customs nave, during tne past '-in ree
years, gradually diminished, and the con
tinuance of .useless and extravagant- ex
penditures will involve us in national bank
ruptcy, or else make inevitable an increase
or taxes already too onerous, ana in many
respects obnoxious on account of their In
quisitorial character, Une hundred mil
lions annually are expended for the mili
tary lorce, a large portion or which is em
ployed in the execution of laws both -unnecessary
and unconstitutional. One hun
dred and fifty millions are required each
year to pay the interest on tbe public ueot.
The. army ot tax gatherers impoverishes
tne nation, and public agents, placed by
Congress beyond the control of tbe Exec
utive, divert from their legitimate purposes
large sums of money which they .collect
from the people In the name of the Govern
ment. Judicious legislation ana prudent
economy can alone remedy detects and
avert evils which, if guilt-red to exist, can
not tail to diminish confidence in the pub
lic councils and weaken the attachment
and respect of ' the people towards' their
political institutions. -.
- Without proper care, the small balances
which It Is estimated will remain in tbe
treasury at the close of the present fiscal
year, will not be realized, and additional
millions will be added to a debt which is
now enumerated by billions. , . -.
. It is shown by the able and comprehen
sive report of the Secretary of the Treas
ury that the receipts for the fiscal year
ending June 30th, 1863, were $405,638,083.
and -that the expenditures for the same
period were $377,340,284, leaving in the
treasury a surplus of $28 297,793. It is es
timated that the receipts during the present
fiscal year, ending June 30th, 1869, will
be '$341 392,868, and the expenditures
$336,152,470 showing . a c. small bal
ance , ot $5,240,393 in favor ot the
Government. For' the fiscal year end
ing June 30tti, 1870, it isestinmtnrt that the
receipts will amount to $327,000,000, and
the expenditures to $303,000,000. leaving an
estimated surplus of $24,000,000. ,
It becomes proper in this connection to
make a brief reference' to onr public in
debtedness, which has accumulated with
such alarming rapidity and assumed such
colossal proportions. . In. 1789, .when the
Government commenced operations under
the Federal Constitution'; it 'was burdened
with an Indebtedness of Seventy-five mil
lions of dollars, created during the war of
the revolution. This amount bad been re
duced to forty-five millions ot dollars, when
in' 1812 war ' was declared against Great
Britain. The three years struggle that fol
lowed largely increased the national obli
gations, and in 1816 they had attained the
sum of one hundred and twenty-seven mil
lions. Wise and economical legislation,
however, enabled the Government to pay
the entire amount within a period of twen
ty years, and the extinguishment of the
National debt filled the land with re joicing
and was one of the great events ot Presi
dent Jackson's Administration. After its
redemption a large I una remained m
tbe treasury, which was deposited fur safe
keeping with the several states, on condi
tion that It should be returned when - re-
ouired by the public wants.
. In 1849, the year after tbe termination of
an p-rnensive war witn .Mexico, we round
ourselves involved In a debt ot sixty-four
millions, and this was tne amount owed by
the Government In I860, just prior to-the
outbreak of the rebellion. In the spring ol
18B1 our civil war commenced.. Each year
nf itn continuance made an enormous addi
tion to the debt, and when, in the spring of
1K65. the nation successfully emerged irom
the conflict, tbe obligations ot the Govern
ment had reached the immense sum oi v
873,992,909. - V
The aecretary'. of the Treasury shows
that on the 1st day of November, 1867, this
amount naa oeen reduced to $2,4Ul,004.4aU,
but at tne same time bis report exhibits an
increase during the past year of $35,625.11)2.
torthe debt on the first day of November
last is stated to have been $2,527,129,552.
It is estimated by the Secretary that the
returns for the past month .will add to our
liabilities the further sum ot ..eleven mil
lions, making a total increase during thir
teen months of forty-six and a half mil
Uonsvi t :' - .I.--'." 'Il"--i :
In my message to Congress of uecember
4th. 1865.' it was suggested that a policy
(should be devised which, without ' being
oppressive to tbe people, would at once be
gin to effect a reduction ot tne ucdc, ana n
Dersisted in would pay it fully within a -
definite number ot years. ' " "
irk. Suinttm nf th Treasury forcibly
recommends .legislation of this character,
a a w
and justly urges that the longer it Is defer
red tbe more difficult must become its ac
complishment. We should follow the wise
precedent established in 1789 and 1816, and
without further delay make provision for
the payment of our obligations at as early
a period as may be practicable. ' The fruits
of their labors should be enjoyed by our
citizens, rather than used to build up and
s motion moneyed monopolies in our own
ana otner lands.
Our foreign debt Is already computed
by the Secretary of the' Treasury at eight
nunareo and ntty millions, citizens oi
foreign countries receive interest upon a
large portion of our securities, and Amer
ican taxpayers are made to contribute large
sums for their support. The idea that such
a debt is to become pernuinent should be
at all times discarded as involving taxation
too heavy to be borne, and payment once
in every sixteen years, at the present rate
of interest, ot an amount equal to the
original sum. This vast debt, if permitted
to become permanent and increasing.roust
eventually be gathered into the hands ot a
few and enable them to exert a dangerous
and controlling power in the affairs of the
Government. The borrowers would be
come servants to the lenders ; the lenders
the masters of the people.
We now pride ' ourselves upon having
given freedom to four millions of tbe col
ored race. It will then be our shame that
forty millions o. people, by their own tol
eration of usurpation and profligacy, have
sunerea tnemselves to become enslaved
and merely exchanged slave i owners for
new taskmasters in the shape of bond
holders and tax gatherers. Besides, per
manent debts pertain to Monarchial Gov
ernments, and tending to monopolies, per
petuities and class legislation, are totally
irreconcilable with free iustitutions. In
troduced into our Republican system, they
would gradually but surely sap its tounda
tions, eventually subvert our Govern
mental fabric, and erect upon its ruins t
moneyed aristocracy. It is our sacred duty
to transmit unimpaired to our posterity tbe
oiessingsoi liberty wmcn were bequeathed
to us by the founders of the republic, and
by our example teach those who are to
follow us carefully to avoid, tbe dangers
wnicn threaten iree and independent peo
ple. - - i
Various plans, have been proposed for
the payment of the publicdebt. However
they may have varied as to the time and
mode ia which it should be redeemed, there
seems to be a general concurrence as to the
propriety and justness of a reduction in tbe
present rate ot interest. The Secretary of
tne treasury, in his report, recommends
five per cent. Congress, in a bill passed
prior to adjournment on the,27thot July
lact, agreed upon tour and four and a half
per- centu, while by many three per ceut.
nas oeen neld to be an amply sufficient re
turn tor the investment. The general iin
pression as to the. exorbitancy ot the ex
isting rate oi interest nas lea to an In
quiry in the public mind respecting the
consideration which the Government has
actually received for its bonds, and the
conclusion is becoming prevalent- that the
amount . which it obained was, la real
money, three or four hundred Der cent.
less than the obligations which it issued in
return. : r . , , ..(
It cannot be denied that we are paying
an extra per- centage tor the use of the
money borrowed, wbich was paper curren
cy, greatly depreciated below the value of
coin, (this fact is made apparent when we
consider that bondholders receive from the
rreasury, upon each dollar they own in
Government securities, .six per cent, in
gold, wbich is nearly or quite qual to nine
per cent, in currency); that ' the bonds are
tnen converted into capital lor the Nation
al Banks, upon . which those institutions
issue their circulation, bearing six per
cent. Interest-, and that they are exempt
from taxation by tbe Government and the
states, ana tnereby enhanced two per cent
in the hands of the holders.
We thus have-an aggregate of 17 per
cent., wnicn may De receivea upon each
aonar Dy me owners 'ot government secu
rities. A system that produces such re
sults is justly regarded as favoring a few
at the expense of the many, and has led to
tne further inquiry wnether our bondhold
ers, in viewot the large profits which theV
have enjoyed, would themselves be adverse
to a settlement of our indebtedness upon a
plan which would yield them a lair remu
neration, and at; the same time be just to
tne taxpayers oi tne nation, uur national
credit should be sacredly observed, but in
mating provision ior our creditors we
should not forget what is due to the masses
ot the people. -
it may - be assumed that the holders of
our securities. have already received upon
their bonds a larger amount than their
original investment,, measured by a gold
standard. Upon this statement of tacts it
would seem just and equitable that 6 per
cent, interest, now paid tty the Government,
should be applied to the reduction of the
principal 1 in semi-annual Installments,
which, la sixteen years and eight months.
would liquidate the entire national debt.
Six per cent, in gold would, at the present
rates, be equal to nine, per cent, in cur
rency, and equivaleut to the payment of tbe
ueot one ana a nan times, in a traction less
than seventeen years.' 'ThiSi in connection
ith all the other advantages derived irom
their investment, would afford to the public
f realtors a lair ana liberal compensation
for the use of their capital, and with this
they should be satisfied-. -
- Tne lessons ot the. past admonish the
lender that it is not w 11 to be over anx
ious in exacting from the borrower riuid
compliance with the letter of the bond. If
provision1 be made ' for the payment
or tne indebtedness oi - tbe 'Govern
ment in tbe manner suggested, : our na
tion.- will rapidly .recover its national
prosperity. . ' Its Interests require that
some measures should be taken to release
the large amountof capital invested in the
securities of the Government. -It Is not
now merely unproductive, but in taxation
annually consumes one hundred and fiftv
millions oi dollars, which would otherwise
be used by our enterprising people in add
ing to tne wealth ot the nation. . : ,
Our commerce; whioh at one time success
fully rivalled that of , the great maratime
powers, has rapidly ' diminished, .and our
industrial interests are in a depressed .and
languishing conditions The development
of our inexhaustible resources, is checked.
and the fertile fields of the Sputa are be
coming waste . for want of means to till
them, mill tne release of capital new lue
would De iniusea into the paralyzed ener
gies of our people, and activity and vigor
imparled to every Drauca or, industry.
Our . people need encouragement in
their efforts to recover from the effects of
the rebellion, and ot injurious legislation,
and it should be the aim of the Govern
ment to stimulate them by the prospect ot
an early release Irom tbe burdens which
Imperil their prosperity. If we cannot take
the burdens from theirshoulders.weshould
at least manifest a willingness to help to
bear them. r . i ....
In relerring to the condition of the circu
lating medium, I shall merely reiterate sub
stantially that portion of ray last annual
message which relates to that subject. 'The
proportion which, the. currency of any
country should bear to the whole value of
the annual produce, is a question upon
which political economists have not agreed.
nor can it be controlled by legislation, but
must be lei t to the irrevocable laws which
every where regulate commerce and trade.
The circulating medium win ever lrresist-
ably flw to those points -where it. is in
Greatest demand. The law of demand and
supply is as unerring as that which regu
lates tbe tides of the ocean, and indeed
currency, like the tides, has its ebb and
flow throughout the commercial world.
At tbe beginning ot the rebellion tbe
bank note circulation ot the country
amounted to not much more than two huu-
dred millions ot dollars. . Now the circu
lation of Natiopal Bank notes, and those
known as legal tenders, is nearly seven
hundred millions. While it is urged by
some that this amount should be increased,
others contend that a decided reduction is
absolutely essential to the best interests of
the country. : . . :...
; In view of these diverse opinions it may
be well to ascertain the real value of our
paper Issue?, when compared l;hu metallic
or convertible currency. For this purpose
let us inquire how much gold and silver
could be purchased by the seven hundred
millions of paper money now in circula
tion. Probably not more than halt tbe
amountof the latter, showing that- when
our paper currency, is compared with gold
and silver,its commercial value is compress
ed into three' hundred and fifty millions.
This striking fact makes it the obvious duty
Af tha Unverument, as early as may be con
sistent w'itu the principles of sound polit
ical economy, to lane sucu measures as wui
...hie rite noioer oi iu uulcs iuu iuubo ui
TJ-finnal Banks to convert them with
out loss into specie or its equivalent. '
A reduction. OI our paper uirvuimiuK
mo.ii.,m mnv not necessarily toliow.- ibis.
id depend upon the law ot
demand and supply, though it should be
borne in mind mat Dy luamug icgm kuum
and bank notes convertible into coin, or
its enuivalent. their present specie value, in
the hands of their holders, would be en
hanced one hundred per cent. Legislation
for tbe accomplishment ot a result so de
sirable is demanded by the highest public i
The Constitution contemplates that the
circulating medium ot the country shall be
uniform in quality and value. At the time
of the formation of that instrument the
country bad just emerged from tbe war of
the revolution, and was suffering from the
effects of a redundant and worthless paper
currency. The sages ot that period were
anxious to protect their posterity from the
evil which they themselves experienced.
Hence, in providing a circulating medium
t they conferred upon Congress the power to
win uiuiiGj aiiu icrguiaie me value tuerein.
at tbe same time prohibiting the States
from making anything but gold and silver
a tender in payment of debts.
The anomalous condition of ourcurrency
is in striking contrast with that which was
originally designed. Our circulation now
embraces: first, notes ot the National
Banks, which are made receivable for all
dues to the Government, excepting im
ports, and by all its creditors, excepting in
payment of- inteiest upon its bonds and
securities themselves; second, leal tender
notes, issued by the United Mates, and
whirh the law requires shall be received as
.wen In payment of all .debts between citi
zens, as of all Government dues, except
ing import.-: and third, gold and silver
--coin. -''' j :
Bv the operation of our present system
of finances, however, the metallic curren
cy, when collected, is reserved only for one
class of Governmentcreditors, who, hold
ing its bonds, semi-annually receive their
interest in -oln from the National treasury
There is no reason which will be hecepted
as satisfactory by tbe people why those
who attend us on the land and protect us
on tbe sea, the pensioner upon the grati
tude ot the nation, bearing tbe scars and
wounds received while In its eevice, the
public servants In tbe various Departments
- ot trie government, tne iarmer who sup
plies the soldiers ot the army and the sail
ors of the navy, the artisan who toils in the
nation's workshops, or the mechanics and
laborers who build its edifices and con
struct its torts and vessels of war, should.
in payment ot their just and hard earn
eu dues, receive depreciated paper,
while another class of their countrymen,
no more deserving, are paid in coin otgold
and silver. - - -,
Equal and exact justice requires that all
creditors ot tbe Government should be paid
In a currency possessing a uniform value.
inia can only be accomplished by tbe res
toration of the currency' to tbe standard
established by the Constitution, and bv
this means we would remove a discrimina
tion wbich may, if it has not already done
an, create a prruuice 'tnat -may OecOUlC
aeep-rootea ana wiue-spreaa, and Imperii
the JN at tonal credit. - The feasibility of
making our currency'correspond with the
Constitutional standard may be seen by
reierence to a tew facts derived from our
commercial statistics. The aggregate uro-
ductof precious metals in the United States
from 1849 to 1SW-. amounted to $1,174,000.
000, while for the same period the net ex
ports of specie were $741,000,000. ' This
shows an excess ot product over net ex
ports of $433 000 000. Tbere are In tbe
treasury $103 407,98o In coin; in' circulation
.in the States. on the Pacific coast, about
$40,000,000,and a tew millions in the Nation
al and -piher banks; in all less than $100,-
UUU.UUU. ......
Taking into consideration the specie in
tne country prior to 1S4U, and that produced
since 1867, we have more than three hun
dred millions nut accounted lor .by exporta
tion or by the returns of the teeashryj and
therefore moet probably remaining in the
country rxoese are linoprtaot tacts and
show how completely the interior curren
cy will supercede tbe better, forcing it
from circulation among the masses, and
causing it to he exported as a mere article
of trade, to add to the money capital of
foreign lands. They show the necessity of
retiring our paper uoney; that the return
of gold and silver to the avenues of trade
may be invited and a demand created
which will cause the retention at home ot
at least so much of the productions of our
rich and Inexhaustible gold bearing fields
s may be sufficient tor -purposes- o-oircu
Jatiou. It is Unreasonable to expect. a re
turn to a sound currency so long as the
Government and banks, by contiuuing to
issue, irredeemable notes, till the channels
of circulation'with'depreclated paper.
Notwithstanding a coinage by our mints
since 1849 ot eight --hundred and seventy-
tour millions ol dollars, the people are now
strangers to the currency which, was de
signed for tiieir uses and benefit, and spec
imens of the precious metals bearing the
National device are .seldom seen except
when produced to gratify ttre interest ex
cited by their novelty. It depreciated pa
per isto be continued as the permanent
currency of the country, and all our coin is
to become a mere article of trarhc and spec
ulation, to the enhancement of the price of
all that is indispensable to the comfort ot
the people, it will be wise economy to
abolish our mints, thus saving tbe nation
the care ana expense incident to such es
tablishments, and let all our precious metals
be exported in bullion.
" The time has come, however, when the
Government and National Bauks should be
required to take tbe most efficient steps and
make all necessary arrangements for a re
sumption ot specie payments. Let specie
payments once be earnestly inaugurated
by tbe Government and banks, and the
-value of the paper circulation would di
rectly' approximate a specie standard.
Specie payments having been resumed by
, the Government and bauks, all notes or bills
of paper issued by either, of a less denomi
nation than twenty dollars, should by law
be excluded : from circulation, so tbatthe,
people may have the bent-fit and conve-
nience of a gold and silver currency, which
in air their business transactions will be
uniform-In value at home and abroad.1 Ev
ery man oi property or industry, every
man who desires to preserve what he hon
estly possesses or expects to obtain what
he carr honorably earn, has a direct interest
in wanting a safe circulating medium:
such medium as shall be real and substan
tial, not liable to. vibrate with opinions, not
subject to be blown up-or blown down by
the l-reath ot speculation--1
A disordered currency is one of the great
est political evils. It undermines the vir
tues necessary for. tbe support ot the social
system, and encourages propensities de
structive of its happiness. It wars against
industry, frugality -and economy, and ft
fosters the evil spirits of .extravagance and
It has been asserted by one of our pro
found and most gilXed statesmen, that of
all coutrivauce ldr cheating the laboring
classes. ot mankina.nooe nas been more
eflectual than, that 4 which - deludes them
with paper money . Tuis is the most el
fectualof inventions to fertilize the- rich
man's fields by the sweat ot the poor man's
brow.-: ordinary tyranny, oppression, ex
cessive taxation these bear lightly on the
tne happiness ot tne mass oi tne commu
nity, compared with a fraudulent currency
and the,rpbberies committed, by depreciated
paper- Vj.t.'Xi.1 . t V-iia .i
Our own history has recorded for our In
structfon enough and more than enough of
the demoralizing tendency, the injustice
and tbe intolerable.oppression on the vir
tuous and well disposed, of a degraded pa
per currency authorizeil-by-iaw or in any
way countenanced by Government. It is one
of the most successful devices in times ot
peace or war, or expansions or revulsions
to accompusn tne transter ot an tue pre
cious metals from the great mass ot the
people into the hands ot the tew, where
they are hoarded in secret places or depns
ited under bolts and bars, wbile the people
are lett to endure all tne inconveniences,
sacrifices and demoralization resulting
from tbe use of depreciated and worthless
paper. - - -.
The Secretary of the Interior, in his re
port, gives valuable information in refer
ence to tbe interests confined to tbe super
vision of his Department, and reviews the
operations ot the land office, pension oil! :e,
patent office, and the Indian bureau dur
iug the fiscal year ending June 30. 1SG8.
: Six million six hundred and filth-five
thousand seven hundred acres of publ c
land were disposed on. ,.ise entire cash
receipts of the general land office for the
same perioii were $1,632,145, being greater
by $2sl,s8d than the amount realized from
the came sources during the previous year.
: Tbe entries under tne homestead law
cover- two- millions' three- hundred and
twenty-eight thonsand nine hundred and
twenty-three acres, nearly one fourth ot
which was taken under the act of June 21,
18G6, which applies only to the Stites of
Alabama, Mississippi, .Louisiana, Arkansas
and Florida.
On the 30tn of June, 1SGS, . one hundred
and sixty-nine thousand .six hundred and
forty-three names were borne on the pen
sion rolls, and during tbe year ending on
that day the total amount paid for pensions,
including the expenses of di-bursemeut,
was $24,010,982,- being $5,391.025,. greater
than expended ior like purposes durin
tbe preceding year.
During the year ending the 30tlf of Sep
tember last, the expensesol the patent ot
1 flee exceeded the receipts by one hundred
and seventy-one dollars, and including t
issues and designs, fourteen thousand, one
hundred aud tilty-three patents were is
sued. - . ! ., -r
Treaties with various Indian tribes have
been concluded and.n'ii; no submitted to
,the Senate for its Constitutional action. 1
cordially sanction tbe stipulations which
provide for reserving lands for the various
tribes, where they may be encouraged to
abandon their nomadic habits and engage
in agricultural and industrial pursuits.
This policy, inaugurated many years siuce.
nas met witn signal success whenever It
has been pursued in good faith and with
becoming liberality by the United States.
The necessity lor extending it as far as
practicable In our relations with the
aboriginal population is greater now than
at any preceding period. Whilst we fur-
nisn suosistence and instructions to tne In
dians, and guarantee -tbe undisturbed en
joyment of their treaty rights, we should
naoituauy insist upon the laithlul observ
ance of their agreement to remain Within
their respective reservations. This Is the
only mo''e by which collisions with other
tribes andwub the whites can be avoided
and the safety-oi our frontier settlements
BCl UECUi , . ... . - ' . I
The Companies constructing the railway
from Omaha to Sacramento have ..been
most energetically engaged in prosecuting
the work, and it is believed i hat the line
will, be completrfd before the expiration ol
the -nrxt fiscal year. "The six per cent
bonds issued to these Companies amounted
on the 5th inst.tQ $44.337.000,and additional
worK nau oeen pcriorniea to the extent ot !
3 2UU.UUU. -The Secretary of the Interior. :
in Auju-t last, invited my attention to th
report or the tiovernmeiit director of tin
Union Pacific Railroad Company, who hai.
been specially instructed- to examine th ,
location, constructiou .and eauiouieut o:
their road. ' I submitted fo'the opinion oi ,
the Attorney General certain questions ii .
:,regarth'to the authority of the Executiv .
which, arose . upon - this report, and thosi
which pad irom lime to time been present
ed bythe commissioners appointed to ex-atnuithis-
aud other lirtes, atttf- 'have re
cently submitted . a statement of-jtheir in
vestigatious, o( which, the reports o the
Secretary of the'Iaterior furnishes specific
Information. -" A '- : --
.The report of the Secretary of War con
tains information ot , interest and. impor
tance respecting the several bureaus of the
War Department,, and (he Operations of the
armyv1 i ne strength or our military forces
On the30Lh ot September .hut was forty
eight thousand meu,-and-t ,4s computed
that; this,' number will be decreased to 41
OOO.It Is the1 'opinion of the Secretary of
War that wtthlfi the next yea consider
able diminution of infantry force rafev'be
made without detriment to Uie. interest of
"the chuntry. In view of tiie great expense
attending the military peace establishment,
and the absolute necessity of 'retrenchment
wherever, it can be applied, it is hoped
that Congress will sanctioa the reduction
which' his report 'recommends. While lnj
1868 16.300 men cost the nation $16 472,000,
tbe, sum of $65 682.000 is. estimated .ns.
necessary for the. support of the army dur-
flS(rh fliflnr VC-jr ' orwli,rr T., 9n 1Q7A
The estimates' of the WarTeparf.ment Jor
moun iwo nscai years werej ior lsot
$33.854461, and. for J868 $25205,669.,- The
actual expenditures during, tue. same pe
riods - were "respectively $95,224,415 ' and
$123,246,643. Thn estimate submitted in
December last for tbe fiscal year ending
June 301369, was $77,124,707. The expeu
dltures for- the - first quarter, ending the
30th of September last, were $27,219,117.
atHl- "the" Secretary of the Treasury gives
fr nnn nAn .... .1. . . . " .
,uu,uuu.uw as liic amount wnicu win pTOD-
ablyo.bef. required! during the remaining
threat -quarters,' it there should be re
duction of the.army.-tnakiug its aggregate.
Lcost for theeacjcoosidjerably in axcess of
$93,000,000. The dinvrence between the es
timates aud expend. tures tor the three ii
ear years -wlilcn have br-en flamed Is thus
shown to be $175 5,45,343 for this single
b.ranuhftuLpublic-eervirhf-,'"; ,
' The report of the Secretary of the Navy
exhibits the operations of that department
and of the Navy during the- year. A con
siderable reduction of- the force has bee u
effected.: There are forty-two. vessels car-,
rying forr hundred and elevetiguns In the:
six squadrons which are established iu dif-i
terent parts ol the - world. Three of these
vessels are returning to the United-States
and four are used as storesbips, leaving
the actual cruising force thirty-tl ve ves-;
sels, carrying three hnndred and fifty-six
guns. The total number of vessels in the
navy Is two hundred and six, mounting
seventeen hundred and ,forty-three guns.
Eighty-one vessels of every description are
in use, armed with six hundred and ninety
six guns. . Tbe number of enlisted men In
the service, including apprentices, has been
reduced to eight thousand Ave hundred.
Au increase of navy yard facilities is
recommended as a measure which will, in
the event of war, be promotive of economy
and security.
. A more thorough and systematic survey
ot the North Pacific ocean is advised in
view of our recent acquisitions, our ex
panding commerce, and the increasing in
tercourse between the Pacific States and
Asia. ? . ' - '' - '.
' The naval periston fund, which consists of
a moiety of the avails ot prizes captured
during the war, amounts to $14 000,000.
Exception is taken to the act of the 231
ot July last, which reduces the interest on
the fund loaned to the Government by the
Secretary as trustee to three per cent, in
stead of six per cent., which was originally
stipulated when tbe investment was made.
An amendment of the pension laws Is
suggested to remedy omissions and d elect c
in- existing enactments. The expenditurei
of the Department during tne last fiscal
year were $20,120,394, aud the estimates foi
the coming year amount to $20 903 314.
The Postmaster General's report fur
nishes a full and clear exhibit ot the ope
rations ana condition ot the postal service
The ordinary postal revenue lor the fiscal
year euding June 30, 18CS, was $16,292,600
and the total expenditures, embracing all
the service lor which special appropria
tions have been made bv C6tigress,amount-
ed to $22.730 592. showing an excess of ex
penditures ol $6 437,991. Deducting frou.
the expenditures tbe sum of $1,896,525. th
amountof appropriation for ocean steam
ship and other e-ptcial service, the excess o
expenditures was $4.o41.4(i6. By using at
unexpended balance in the Treasury o
the actual sum lor which a spe
cial appropriation's required to. meet tin
deficiency is $741,266. The causes whtci
product d this large excess of expenditure
over revenue, were the restoration of the
service in the late insurgent States, and th
putting into operation of new service es
tablished by acts ot Congress, whicl
amounted, within the last two years and t
halt, to about 48,700 miles, equal to mor
than one-third ot the whole amount ot tin
service at the close of the war.
New postal conventions with Great Brit
ain, JNorth Ueruiauyv lielgiuin, the .Neth
erlands, Switzerland and ftaiy, respective
ly, have been carried into effect under their
provisions. Important improvements have
resulted in reduced rates of international
postage and enlarged mail lacilities witb
European counlr.es. The cost of tbe United
States trans-Atlantic ocean mail service
since rJan. 1.' 1803, has been largely lessened
under the operation ot these new conven
tions, a reduction of over one-half having
been effected under the new arrangement
for ocean mail steamship service, which
went into effect on that date. Tbe atten
tion of Congress is invited to the practical
suggestions and recommendations made in
his report by the Postmaster General. '"
No important question has occurred dur
ing the last year in our accustomed cordial
and friendly intercourse with Costa Kica,
Guatemala, Honduras. San Salvador,
France, Austria, - Belgium, Switzerland,
Portugal, the- Netherlands, - Denmark,
Sweden, .Norway, Home, Greece, Turkey,
rersia, n.gypr, LiiDena, Morocco, Tripoli,
Tunis, Muscat, Siom aud Madagascar.
Cordial relations have also been maintain
ed with the Argentine and the oriental re
publics. .:: ;':;: !
The expressed wish of CoHgress that our
national good offices might be tendered to
these republics, and also to Brazil and f ar-
aguay, lor bringing to an end the calami
tous war winch has so long been raging in
the valley of the L i Plata, has been assid
uously complied with and kindly acknowl
edged by all the belligerents. That iui-
p irta'nt negotiation, however, has thus far
been without result. Charles A. Wash
burne, late United States Minister to Par
aguay, having resigned, and being de
sirous to return to the United States, the
Kear Admiral commanding the South At
lantic squadron was early directed to send
ashipol war toJAsenscion, the capital of
r araauay, to ieceive jar. wash Dur ne and
his family, and remove them from a situa
tion-which was represented to be en
dangered by taction and foreign war. - The
Brazilian commander of the allied inva
ding lorces refused permission to the Wasp
to pass tbe blockading, forces, and that
vessel returned to its accustomed anchor
age, iteiuoiisiraiice iibviux - oeen - made
against this refusal, it was promptly over
ruled and the Wasp therefore resumed her
errand and received Mr. Waslitjuine and
his family and conveyed them to a safe and
convenient sea port. - -
In tbe meantime an excited controversy
had arisen between the President of Para
guay and the late United States Minister,
whrcH, if is- understood, grew out er his
proceedings in giving asylum - in tbe
United States Legation, to alleged enemies
ot that Itepublhv- The -question or the
right to give asylum is one always difficult
and olteu productive of great etnbarass
mcnt id "States well organized and estab
lished, , -Foreign powers refuse either to,
cincede or exercise tha. right except as to
persons actually belonging to the diplo
matic service. On-the other band all such
powers Insist upon exercising the right ot
asylum In States where the law of nations
is not fully acknowledged, respected and
obeyed. Tbe Presldentof Paraguay is un
derstood to have been opposed to Mr
Washburne's proceedings, aud makes the
injurious and very Improbable charge ol
personal complicity in Insurrection and
treason. The correspondence, however,
has not yet reached the United States.
, Mr, Waahburne, in connection with this
controversy, represents that two United
States citizens attached to the legation
were arbitrarily seized at his side, when
leaving the capital of Paraguay, commit
ted to prison, and there subjected to torture
lor tbe purpose of procuring confessions of
their own criminality, and testimony to
support the President's allegations against
tne united states Minister.
Mr. MuMahon, the newly appointed
Minister to Paraguay, having reached tbe
La Plata, has been instructed to proceed
without delay to Ascunscion, th re to in
vestigate the whole subject. The Rear Ad
miral commanding the United States South
Atlantic squrdron has been directed to at
tend tbe new Minister with a proper naval
force to sustain such, just demands as the
occasion may require, and to vindicate the
rights of the United States citizens referred
to, and ot any others who may be exposed
to danger in thexheater of war. -
With these exceptions, frieudly relations
have been maintained between the United
States and Brazil and Paraguay.
Our relations during tbe past year with
noima, Ecuador, l'eru and Chill have be
come especially friendly and cordial.i-
Spain and the republics of Peru, Bolivia
ana Ecuador nave expressed their willing
ness to accept the mediation of ibeUaited
Estates foi terminating the war upon the
South Pacific Coast. Chili has not finally
declared upon the question. . In the mean
time the conflict has praciticaly exhausted
itseir, since no ociitgerant or hostile move
ment has been made by either party dur
ing tne last two years, ana tbere are no in
dicationsot a present purpose to resume
hostilities on either side. Great Britian
and France have cordially seconded our
proposition ot mediation and do not forego
the hope that reason will be accented bv
all the belligerants and lead to tbe sure es
tablishment of peace aud friendly relations
between the Spanish American republics
of the Pacific and Spain, a result which
would be attended with common benefits to
the belligerants and much advantage
all commercial nations. -
T I communicate "for the consideration of
Congress a correspondence which 6hows
that the uouviati republic has established
the extremely liberal principle Ot Teceiv!-
ing into its citizenship any citizen of tbe
United States, orot any other of tbe Amer
ican republics, upon the simple condition
of voluntary registry.
The correspondence herewith submitted
will be lound painfully replete -with ac
counts oi tne ruiu aud wretchedness pro-
aucea oy recent eartnquaKes ot unparal
leled severity in the republics ot Peru am
Bolivia. ; The diplomatic agency aud naval
cmcers oi tne united states who were
present , in these countries at the time of
these disasters furnished all the relief in
tneir power, to tne. sunerers, and' were
promptly "rewarded with grateful and
touching acknowledgements by tbe C in
gress of Peru. ; An appeal to the charity
of our fellow citizens has been answered
by mu:U liberality.
., Iu. this; con neo Lion I. submit an appeal
which has been-made by the Swiss Repub
lic, whose Government and institutions are
kindred to our own, iu behalf of its inhab
itants, who are suffering extreme destitu
tloti- produced by recent inundations.
Our relations with Mexico during the
year have been marked by an increasing
growtn ot mutual confidence, l he Mexi
can Government has not yet acted upoit
toetreatis celebrated here- last wimtiier
for establishing the rights of naturalized
citizens upon a llberaf and just basts, for
regulating consular powers and lor the ad
juctmeut of mutual claims. . , . .
.All-commercial nations,- as well as
friends ot Republican institutions, , have
occasion to regret the frequent local dis
turbances wbich occur iu some of the con
stituent States ot Columbia. Nothing has
occurred, however, to affect the harmony
and cordial .friendship1 which have lor sev
eral years existed between that youthful
and vigurous Republio and ourowni 1- '
--' Negotiations are pending with a view to
the survey and construction of a ship ca
nal across the I.-tbmus of Darieo, under
the auspices of tbe United States. 1 hope
to be able to submit the result ot that ne
gotiation to the Senate during its present
session. ' . ' , i ; i :, ' i
- The very liberal treaty which was enter
ed into last year by the United' States and
Nicaragua has been ratified by the latter
Costa Rica, with the earnestness ot
sincerely friendly neighbor, solicits . reel
procity of trade, which I commend to the
consideration of Congress.
' Tbe convention created by treaty be
tween the United States and Venezuela, in
July, 1S65, for tbe mutual adjustment of
claims, has been held, and its decisions have
been received at the Department of State,
The heretofore recognized Government, of
- the United btates ot Venezuela has been
subverted, a provisional government bay
i ing been instituted under circumstances
; which promise durability. It has been for
. mally recognized. - - -
1 nave been reluctantly Obliged to as
- explanation and satisfaction for national
injuries committed by the President
Haytl ' The political and social condition
of the Republics ol Hay ti and St. Domingo
are very unsatisfactory and paiulul. The
abolition ot slavery, wlilcJi has .been car
ried into effect throughout the island of St,
Domingo and the entire West IiidiFsvex-
cept the Spanish islands of Cuba and Porto
' Rico, has been followed by a p.olomid
popular conviction of the. rightfnlntss
ol republican institutions, and au in
: tense desire to secure them. , The attempt,
however, to establish - republics has en
countereu many obstacles, most of . which
may be supposed to result, from1 long in-
du gfcd habits of colonial supremacy and
. depeudeiice- upon . European mouarcblal
power. . ..-.)..! i . ;
'While the United States have on nil oc
casions professed a decided unwillingness
tbae any part ot till continent or of its ad
jacent islinds shall be made a theater fora
new establishment ot monarchial power,
too little bas been done by the United
States, on tbe other hand, to attach the
communities by which we are surrounded
tor our own country, or to lend even a moral
support to the en Jrts they are so resolutely
and so constantly making to secure Repub
lican institutions for tbemseives. It Is In
deed a question of grave conslderatlo
wheUierour recent aud preseut example U
not calculated to check tue growtn and ex
pansion ot free principles and -make these
communities distrust, if not dread a Gov
ernment wbich at will consigns to military
domination States that are integral parts of
our Federal Union, and while ready to re
sist any attempts by other nitious to ex
tend to this hemisphere the monarchial in
stiiutions of Europe, assumes -to establish
, over a large portion of its people a rule
more absolutely hnrsh and tyrannical than
1 any known to civilized powers.
The acquisition of Alaska was made with
the view of extending national juris
diction and Republican principles in the
' American Hemisphere. Believing that a
further step' could be taken in the same
direction I last year entered into a treaty
with the King ot Denmark tor the pur
chase of the islands ot St. Thomas and fit,
John, on the best terms then attainable,
and with the express consent of the people
of those islands. This treaty still remains
under consideration in tbe senate.- A new
convention has been entered Into with
Denmark, enlarging the time fixed for final
ratification ot tbe original treaty.
- A comprehensive national policy would
seem to sanction the acquisition aud incor
poration into our " Federal Union ol
the several - adjacent continental and
insular ..communities as speedily
as it can - be done, peacefully, law
fully, and . without any violation ot
national iustice. faith or honor. Foreign
possessions or control of those communi
ties has httberto ninuereu mo urowtu jauu
impaired tbe influence ot the united states.
Curotiio revolution and auarcby ... thers
would be equally injurious. Each one ol
them, when firmly established as an inde
pendent republic, or wnen incorporated
into tjie Uuited States, would . be a new
source of strength and power. Conform
ing my administration to these principles,
I have, on no occasion,- lent support -ortol-eratiou
to mUawlul, expeditious set on loot
upon thd plea of republican propagandhm
or of national extension "er.. aggrandize
ment. Tbe necessity, however, oi repress
ing sucn uniawtui movements, clearly in
dicates the duty which, rests upon us ot
adapting our legislative action to the new
circumstances of a decline -of European
monarchial power and influence, and the
increase of American republican Ideas, in
terests and sympathies. ,.
It cannot' be long before, it will become
necessary tor this Government to lend some
effective aid to tha solution of the political
and social problems which are continually
kept before tbe world by the two republics
of the isaud of St. Domingo, and which
are now disclosing themselves more dis
tinctly than heretofore, in tbe island of
Cuba. ' r
The subiect k
slderation, with all the more earnestness
uwauao a am satisnea that tbe time has ar
rived when even so direct a proceeding as
a proposition for annexation of the two
repnoircB oi me island of St. Domingo
would not only receive the consent of the
people interested.' but would also give sat
isfaction to allother foreign nations. '
I am aware that upon the question of
further extending -our possessions it Is ic-'
1 . .. V. . 1 . .... . 1
preiieiiusu vy buujo tosb uur political Sys- .
tern cannot successfully be applied to an
area more extended than our continent.
but the conviction is rapidly gaining
ground in the American mind that with
the, increased facilities for inter-communi
cation between all portions of the .
earth, the principles of free Government,
as embraced in our Constitution, If faith-
iuuy maintained and carried out, woull
prove Ot sufficient strpnu-th and breadth to
comprehend within tneir sphere and in-
uuniiue me uviuzea nations of tne woria.
The attention ot the Senate and of Con
gress is again respectfully invited to the
treaty ior tue esiaousnmentof commercia 1
reciprocity with the Bawalan kingdom,
entered into last year, and already ratified
by that Government. Tbe attitude of the
United States towards these ulands is not
very different from" that In which they
stand towards tbe West Indies. It is known
and felt by the Hawaian Government and
people thatthelr Government and institu
tions are feeble and precarious ; that the
United States - being so near a neighbor
wonld be unwilling to see the islands pass
under foreign, control. . Their' prosperity
is continually disturbed by expectations
and alarms of unfriendly political proceed
ings,' as well from the United States as
from foreign powers. A reciprocity treaty,
while it could not materially diminish the
revenues ot the Uuited States, would be a
guarantee of tbe good will and forbearance
of all .nations until the people ot the Is
lands shall of themselves, at no distant
day. voluntarily apply for admission .'.Into
the Union.. - n-.r; '
The Emperor of Russia bas acceded to
the treaty negotiated heie in January last
tor the security of trade marks in the in
terest of manufacture and 'commerce.1 I
have Invited his attention to the import
ance ot establishing now, while it seems
easy and practicable, a t&Ir and equal reg
ulation ot tbe vast fisheries-belonging to
the two natlpna iivtbe waters of the Nortb.
Pacific ocean.
The two treaties between the United
States and Italy tor the regulation of con
sular powers and the extradition of. crimi
nals, negotiated, and ratified here during
tbe last-session of Congress, have been ac
cepted and confirmed by the Italian Government-
.....,.," ,
A liberal -ce-nsular convention, which
ha been negotiated with Belgium,, will be
submitted to the, Senate, ..... , ' i
The. very important treaties which, were
negotiated between the United States and
North Uermany and Bivarla, for the regu
lation ol the rights ot naturalized citizens,
have' been, duly ratified and exchanged,
and similar treaties have been entered into
with the Kingdom of Belgium and W u--temburg,'
and with the Grand - Duchies df
B-iden and Hesse-darmstadt. I hope stoa
to be able to submit equally-, satisfactory
conventions of tbe same character, now la
the course of negotiation, with the respec
tive Gevertrments- -of apairJi-Italyiid-thB
Ottoman- Empire.- j ( : ; ,' , ) ,
The examination of the claims against
the United States by the .Hudson's, Bay
Company and-tbe Puge? Sound AgrieuK
tural Company, on account of eertain pos
sessary rights in the State of Oregon and
Territory of Washington, alleged by 'these
companies in virtue of the provisions of
the treaty between the United States and
Great Britain ot June 15:h, 1S46-, has bees
diligently prosecuted under the direction of
the Joint International' Commission to
which they were submitted for adjudica
tion by the treaty between the two govern
ments of July 1st, 1863, and it is expected
to be concluded at an early day. "No prac
tical relation Concerning colonial trade and
the . fisheries , -can be accomplished by A
treaty between the United States and Great
Britain until Congress shall have express
ed their judgment concerning the princi
ples involved.. .-.- s -rThree
other questions, however, between
the United States and Great Britain, re
main open for adjustment. These are the
mutual rights of naturalized citizens, the
boundary question, involving the title to
tbe island of San Juan, on the Pacific
coast, and the mutual claims arising since
the year 1S53. ot the citizens and subjects
of the two countries, for injuries and dep
redations committed under, tbe authority
of their respective Governments. Negotia
tions upon these subjects are pending, and
I am not without hope ot being able to lay
before tbe Senate, for its consideration dur
ing the present session, protocols calcu
lated to bring to an end these justly excit
ing and long existing controversies.- . l
We are not advised of the action of the
Chinese Government upon the liberal and
auspicious treaty which was recently cele
brated with its .Plenipotentiaries at this
Capital. .tii . c,.iv.i
Japan - remains a theater of crvirwar,
marked by religious incidents and political
severities peculiar to that long isolated em
pire. The Executive bas hitherto main
tained a strict neutrality among the bdlig
erents,and acknowledges with pleasure that
it has been frankly and fully sustained in
that course by tbe enlightened concurrence
and co-operation of the other treaty p oth
ers, viz: G reat Bri tain, France, tbe Nether
lands, North Germany and Italy.
Spain having recently undergone a rev
olution, maiked by extraordinary unanim
ity and preservation of order, the Provi
sional Government established at Madrid
has been recognized and tbe friendly , in
tercourse Which bas so long happily exist
ed between the two countries remains un
ching. d. - - - - -
I renew the recommendation contained
in rr.y communication to Congress dated
the IStb of July last, a copy of which ac
companies this message, that the judgment
of the people should- be taken on the pro
priety of so amending the Federal Const!
tnthm that-tt shall provide,' first, tor an!
election of President and, Yioe President
by a direct vote of the people, instead of
through the agency of electors, and mak
ing .them ineligible for re-election to- a
second term; second,- for a distinct desig-,
nation of the person who shall discharge
the duties of President, in .the-, event of a
vacancy in that office, by the death, resign-'
nation or removal of both the President
. VI.. 13 - 1 1 .... . .KI..1 V.- .V, 1, .T
of Senators of -the United States -directly
the people or tbe several States, Instead of
by' tbe Legislatures;' and' tourtb, for. tbe i
limitation to a period of ytarsoi tbe terms -
of Federal Judges. - - ' - r - j
Profoundly Impressed with the proprie
ty of making these Important modifier
tions in tbe Constitution,. I respectfully
submit them for tbe early and mature con-
slderation of Ongress. We should, as f ar ,
as possible, remove all pretext for viola- -tions
of the organic-' law,' by --remedying:
such imperfections as time and experience',
may develop, ever remembering that the
Constitution, which' at any- time exists,
until changed by an explicit and authentic
act of tbe whole people, Is sacredly obliga
tory upon all. f ' - - - 4
In the performance of a doty Imposed'
boon me by the Constltutlon. I have.thua.
communicated to Congress Information ot
tbe state of tbe Union, and recommended
for their consideration such measures as
have seemed to me necessary aud expedi?.
eut for carrying into effect. They will hes-o
ten the accomplishment oi tno great ana -beneficent
nurooses for which the Consti
tution was ordained, ana wbich'it compre-"(
hensi vely states were 4-to form a more per
fect Union, establish iustice, insure domes- -
tic tranquility, provide for the -common
defense, promote the general welfarj and
secure the blessings of liberty totjourselves
and our posterity" " ii ......
. In Congress are vested all legislative'-.
powers, and upon them devolves the' re-:i
spou&ibiUtyas well for. tram In or u
and excessive laws, as for nes-lectinu- tn
devise and adopt measures absolutely de-
uiauueu vy tue wants oi tne country. , ,
1 juet us earnestly nope tnat oetore the ex- .
piration of our respective terms ot ser-
vice, now rapidly drawing to, a close, an.
All-Wise" Providence wiir so" guide our
counsels as to strenghen and preserve the
Federal Union, inspire reverence for the-
Constitution, restore psosperity and hap
piness to our wnoie people, ana promote
on earth win toward men.''
WASHINGTON, D. C., Dec. 9th, 1868.
Lumber; for Saler-
.; i.tJL'.ii
-Jl'J !
THE LK"tTAfter 'PAHE A990CIA,f
TION offer at orlvatB mta mil th i.k..-.-. i
uined in the feme -encltMrag their Uaee Coarse.
hit, ruuiur-iir soma siaoie. west L&nrf -
dees" stand, picket fence, Ao. -
Parties wishing thm whnl f t.h .Lnv.wiM.i .
call on the undersigned, who will Hive all -the aeo 1
eawr information as to price, terms, and time .of
reinovafci' it -.u... itlCUARi) KEVINS,
If not dispone ctb SATDBlJAYl'uEjjl'iaT
law. it will be sold ett TUE S D A. Y. D lib. is, isisl
c publw amotion, bj John Q Beall. Auctioneer. . '

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