Upon the reassembling of Congress it again becomes my duty to call your attention to the state of the Union and to its continued disorganized condition under the various laws which have been passed upon the subject of reconstruction. It may be safely assumed as an axiom in the government of 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 revocation of injurious and oppressive measures is the greatest good that can be conferred upon a nation. The legislator or ruler who has the wisdom and magnanimity to retrace his steps when convinced of error will sooner or later be rewarded with the respect and gratitude of an intelligent and patriotic people. Our own history, although embracing a period less than a century, affords abundant proof that most, if not all, of our domestic troubles are directly traceable to violations of the organic law and excessive legislation. The most striking illustrations of this fact are furnished by the enactments of the past three years upon the question of reconstruction. After a fair trial they have substantially failed 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 military dependencies in each of which the people have been made subject to the arbitrary will of the commanding general. Although the Constitution requires that each State shall be represented in Congress, Virginia, Mississippi, and Texas are yet excluded from the two Houses, and, contrary to the express provisions of that instrument were denied participation in the recent election for a President and Vice-President of the United States. The attempt to place the white population under the domination of persons of color in the South has impaired, if not destroyed, the kindly relations that had previously existed between them: and mutual distrust has engendered a feeling of animosity which leading in some instances to collision and bloodshed, has prevented that cooperation between the two races so essential to the success of industrial enterprise in the Southern States. Nor have the inhabitants of those States alone suffered from the disturbed condition of affairs growing out of these Congressional enactments. The entire Union has been agitated by grave apprehensions of troubles which might again involve the peace of the nation; its interests have been injuriously affected by the derangement of business and labor, and the consequent want of prosperity throughout that portion of the country. The Federal Constitution--the magna charta of American rights, under whose wise and salutary provisions we have successfully conducted all our domestic and foreign affairs, sustained ourselves in peace and in war, and become a great nation among the powers of the earth--must assuredly be now adequate to the settlement of questions growing out of the civil war, waged alone for its vindication. This great fact is made most manifest by the condition of the country when Congress assembled in the month of December, 1865. Civil strife had ceased, the spirit of rebellion had spent its entire force, in the Southern States the people had warmed into national life, and throughout the whole country a healthy reaction in public sentiment had taken place. By the application of the simple yet effective provisions of the Constitution the executive department, with the voluntary aid of the States, had brought the work of restoration as near completion as was within the scope of its authority, and the nation was encouraged by the prospect of an early and satisfactory adjustment of all its difficulties. Congress, however, intervened, and, refusing to perfect the work so nearly consummated, declined to admit members from the unrepresented States, adopted a series of measures which arrested the progress of restoration, frustrated all that had been so successfully accomplished, and, after three years of agitation and strife, has left the country further from the attainment of union and fraternal feeling than at the inception of the Congressional plan of reconstruction. It needs no argument to show that legislation which has produced such baneful consequences should be abrogated, or else made to conform to the genuine principles of republican government. Under the influence of party passion and sectional prejudice, other acts have been passed not warranted by the Constitution. Congress has already been made familiar with my views respecting the "tenure-of-office bill." Experience has proved that its repeal is demanded by the best interests of the country, and that while it remains in force the President can not enjoin that rigid accountability of public officers so essential 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 accordance with the original design of the Federal Constitution. The act of March 2, 1867, making appropriations for the support of the Army for the year ending June 30, 1868, and for other purposes, contains provisions which interfere with the President's constitutional functions as Commander in Chief of the Army and deny to States of the Union the right to protect themselves by means of their own militia. These provisions should be at once annulled; for while the first might, in times of great emergency, seriously embarrass the Executive in efforts to employ and direct the common strength of the nation for its protection and preservation, the other is contrary to the express declaration of the Constitution that "a well-regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed." It is believed that the repeal of all such laws would be accepted by the American people as at least a partial return to the fundamental principles of the Government, and an indication that hereafter the Constitution is to be made the nation's safe and unerring guide. They can be productive of no permanent benefit to the country, and should not be permitted to stand as so many monuments of the deficient wisdom which has characterized our recent legislation. The condition of our finances demands the early and earnest consideration of Congress. 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 4,000,000 people. Increasing each decade about 33 per cent, it reached in 1860 31,000,000, an increase of 700 per cent on the population in 1790. In 1869 it is estimated that it will reach 38,000,000, or an increase of 868 per cent in seventy-nine years. The annual expenditures of the Federal Government in 1791 were $4,200,000; in 1820, $18.200,000; in 1850, forty-one millions; in 1860, sixty-three millions; in 1865, nearly thirteen hundred millions; and in 1869 it is estimated by the Secretary of the Treasury, in his last annual report, that they will be three hundred and seventy-two millions. By comparing the public disbursements of 1869, as estimated, with those of 1791, it will be seen that the increase of expenditure since the beginning of the Government has been 8,618 per cent, while the increase of the population for the same period was only 868 per cent. Again, the expenses of the Government in 1860, the year of peace immediately preceding the war, were only sixty--three millions, while in 1869, the year of peace three years after the war it is estimated they will be three hundred and seventy-two millions, an increase of 489 per cent, while the increase of population was only 21 per cent for the same period. These statistics further show that in 1791 the annual national expenses, compared with the population, were little more than $1 per capita, and in 1860 but $2 per capita; while in 1869 they will reach the extravagant sum of $9.78 per capita. It will be observed that all these statements refer to and exhibit the disbursements of peace periods. It may, therefore, be of interest to compare the expenditures of the three war periods--the war with Great Britain, the Mexican War, and the War of the Rebellion. In 1814 the annual expenses incident to the War of 1812 reached their highest amount--about thirty-one millions--while our population slightly exceeded 8,000,000, showing an expenditure of only $3.80 per capita. In 1847 the expenditures growing out of the war with Mexico reached fifty-five millions, and the population about 21,000,000, giving only $2.60 per capita for the war expenses of that year. In 1865 the expenditures called for by the rebellion reached the vast amount of twelve hundred and ninety millions, which, compared with a population of 34,000,000, gives $38.20 per capita. From the 4th day of March, 1789, to the 30th of June, 1861, the entire expenditures of the Government were $1,700,000,000. During that period we were engaged in wars with Great Britain and Mexico, and were involved in hostilities with powerful Indian tribes; Louisiana was purchased from France at a cost of $15,000,000; Florida was ceded to us by Spain for five millions; California was acquired from Mexico for fifteen millions, and the territory of New Mexico was obtained from Texas for the sum of ten millions. Early in 1861 the War of the Rebellion commenced; and from the 1st of July of that year to the 30th of June, 1865, the public expenditures reached the enormous aggregate of thirty-three hundred millions. Three years of peace have intervened, and during that time the disbursements of the Government have successively been five hundred and twenty millions, three hundred 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 the fiscal year ending the 30th of June, 1869, we obtain a total expenditure of $1,600,000,000 during the four years immediately succeeding the war, or nearly as much as was expended during the seventy-two years that preceded the rebellion and embraced the extraordinary expenditures already named. These startling facts clearly illustrate the necessity of retrenchment in all branches of the public service. Abuses which were tolerated during the war for the preservation of the nation will not be endured by the people, now that profound peace prevails. The receipts from internal revenues and customs have during the past three years gradually diminished, and the continuance of useless and extravagant expenditures will involve us in national bankruptcy, or else make inevitable an increase of taxes. already too onerous and in many respects obnoxious on account of their inquisitorial character. One hundred millions annually are expended for the military force, a large portion of which is employed in the execution of laws both unnecessary and unconstitutional; one hundred and fifty millions are required each year to pay the interest on the public debt: an army of taxgatherers impoverishes the nation, and public agents, placed by Congress beyond the control of the Executive, divert from their legitimate purposes large sums of money which they collect from the people in the name of the Government. Judicious legislation and prudent economy can alone remedy defects and avert evils which, if suffered to exist, can not fail to diminish confidence in the public councils and weaken the attachment and respect of the people toward their political institutions. Without proper care the small balance which it is estimated will remain in the Treasury at the close of the present fiscal year will not be realized, and additional millions be added to a debt which is now enumerated by billions. It is shown by the able and comprehensive report of the Secretary of the Treasury that the receipts for the fiscal year ending June 30, 1868, were $405,638,083, and that the expenditures for the same period were $377,340,284, leaving in the Treasury a surplus of $28,297,798. It is estimated that the receipts during the present fiscal year, ending June 30, 1869, will be $341,392,868 and the expenditures $336,152,470, showing a small balance of $5,240,398 in favor of the Government. For the fiscal year ending June 30, 1870, it is estimated 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 our public indebtedness, 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 $75,000,000, created during the War of the Revolution. This amount had been reduced to $45,000,000 when, in 1812, war was declared against Great Britain. The three years' struggle that followed largely increased the national obligations, and in 1816 they had attained the sum of $127,000,000. Wise and economical legislation, however, enabled the Government to pay the entire amount within a period of twenty years, and the extinguishment of the national debt filled the land with rejoicing and was one of the great events of President Jackson's Administration. After its redemption a large fund remained in the Treasury, which was deposited for safe-keeping with the several States. on condition that it should be returned when required by the public wants. In 1849--the year after the termination of an expensive war with Mexico--we found ourselves involved in a debt of $64,000,000; and this was the amount owed by the Government in 1860, just prior to the outbreak of the rebellion. In the spring of 1861 our civil war commenced. Each year of its continuance made an enormous addition to the debt: and when. in the spring of 1865, the nation successfully emerged from the conflict, the obligations of the Government had reached the immense sum of $2.873,992,909. The Secretary of the Treasury shows that on the 1st day of November, 1867, this amount had been reduced to $2,491,504,450; but at the same time his report exhibits an increase during the past year of $35,625,102, for the debt on the 1st 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 of $11,000,000, making a total increase during thirteen months of $46,500,000. In my message to Congress December 4, 1865, it was suggested that a policy should be devised which, without being oppressive to the people, would at once begin to effect a reduction of the debt, and, if persisted in, discharge it fully within a definite number of years. The Secretary of the Treasury forcibly recommends legislation of this character, and justly urges that the longer it is deferred the more difficult must become its accomplishment. We should follow the wise precedents 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 sustain moneyed monopolies in our own and other lands. Our foreign debt is already computed by the Secretary of the Treasury at $850,000,000; citizens of foreign countries receive interest upon a large portion of our securities, and American taxpayers are made to contribute large sums for their support. The idea that such a debt is to become permanent should be at all times discarded as involving taxation too heavy to be borne. and payment once in every sixteen years, at the present rate of interest, of an amount equal to the original sum. This vast debt, if permitted to become permanent and increasing, must eventually be gathered into the hands of a few, and enable them to exert a dangerous and controlling power in the affairs of the Government. The borrowers would become servants to the lenders, the lenders the masters of the people. We now pride ourselves upon having given freedom to 4,000,000 of the colored race; it will then be our shame that 40,000,000 of people, by their own toleration of usurpation and profligacy, have suffered themselves to become enslaved, and merely exchanged slave owners for new taskmasters in the shape of bondholders and taxgatherers. Besides, permanent debts pertain to monarchical governments, and, tending to monopolies, perpetuities, and class legislation, are totally irreconcilable with free institutions. introduced into our republican system, they would gradually but surely sap its foundations, eventually subvert our governmental fabric, and erect upon its ruins a moneyed aristocracy. It is our sacred duty to transmit unimpaired to our posterity the blessings of liberty which were bequeathed to us by the founders of the Republic. and by our example teach those who are to follow us carefully to avoid the dangers which threaten a free and independent people. Various plans have been proposed for the payment of the public debt. However they may have varied as to the time and mode in which it should be redeemed. there seems to be a general concurrence as to the propriety and justness of a reduction in the present rate of interest. The Secretary of the Treasury in his report recommends 5 per cent; Congress, in a bill passed prior to adjournment on the 27th of July last. agreed upon 4 and 4 1/2 per cent; while by many 3 per cent has been held to be an amply sufficient return for the investment. The general impression as to the exorbitancy of the existing rate of interest has led to an inquiry 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 obtained was in real money three or four hundred per cent less than the obligations which it issued in return. It can not be denied that we are paying an extravagant percentage for the use of the money borrowed, which was paper currency, greatly depreciated below the value of coin. This fact is made apparent when we consider that bondholders receive from the Treasury upon each dollar they own in Government securities 6 per cent in gold, which is nearly or quite equal to 9 per cent in currency; that the bonds are then converted into capital for the national banks, upon which those institutions issue their circulation, bearing 6 per cent interest; and that they are exempt from taxation by the Government and the States, and thereby enhanced 2 per cent in the hands of the holders. We thus have an aggregate of 17 per cent which may be received upon each dollar by the owners of Government securities. A system that produces such results is justly regarded as favoring a few at the expense of the many, and has led to the further inquiry whether our bondholders, in view of the large profits which they have enjoyed, would themselves be averse to a settlement of our indebtedness upon a plan which would yield them a fair remuneration and at the same time be just to the taxpayers of the nation. Our national credit should be sacredly observed, but in making provision for our creditors we should not forget what is due to the masses of the people. It may be assumed that the holders of our securities have already received upon their bonds a larger amount than their original investment, measured by a gold standard. Upon this statement of facts it would seem but just and equitable that the 6 per cent interest now paid by the Government should be applied to the reduction of the principal in semiannual installments, which in sixteen years and eight months would liquidate the entire national debt. Six per cent in gold would at present rates be equal to 9 per cent in currency, and equivalent to the payment of the debt one and a half times in a fraction less than seventeen years. This, in connection with all the other advantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this they should be satisfied. The lessons of the past admonish the lender that it is not well to be over-anxious in exacting from the borrower rigid compliance with the letter of the bond. If provision be made for the payment of the indebtedness of the Government in the manner suggested, our nation will rapidly recover its wonted prosperity. Its interests require that some measure should be taken to release the large amount of capital invested in the securities of the Government. It is not now merely unproductive, but in taxation annually consumes $150,000,000, which would otherwise be used by our enterprising people in adding to the wealth of the nation. Our commerce, which at one time successfully rivaled that of the great maritime powers, has rapidly diminished, and our industrial interests are in a depressed and languishing condition. The development of our inexhaustible resources is checked, and the fertile fields of the South are becoming waste for want of means to till them. With the release of capital, new life would be infused into the paralyzed energies of our people and activity and vigor imparted to every branch of industry. Our people need encouragement in their efforts to recover from the effects of the rebellion and of injudicious legislation, and it should be the aim of the Government to stimulate them by the prospect of an early release from the burdens which impede their prosperity. If we can not take the burdens from their shoulders, we should at least manifest a willingness to help to bear them. In referring to the condition of the circulating medium, I shall merely reiterate substantially that portion of my last annual message which relates to that subject. The proportion which the currency of any country should bear to the whole value of the annual produce circulated by its means is a question upon which political economists have not agreed. Nor can it be controlled by legislation, but must be left to the irrevocable laws which everywhere regulate commerce and trade. The circulating medium will ever irresistibly flow to those points where it is in greatest demand. The law of demand and supply is as unerring as that which regulates the tides of the ocean; and, indeed, currency, like the tides, has its ebbs and flows throughout the commercial world. At the beginning of the rebellion the bank-note circulation of the country amounted to not much more than $200,000,000; now the circulation of national-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 issues when compared with a metallic or convertible currency. For this purpose let us inquire how much gold and silver could be purchased by the seven hundred millions of paper money now in circulation. Probably not more than half the amount of the latter; showing that when our paper currency is compared with gold and silver its commercial value is compressed into three hundred and fifty millions. This striking fact makes it the obvious duty of the Government, as early as may be consistent with the principles of sound political economy, to take such measures as will enable the holders of its notes and those of the national banks to convert them, without loss, into specie or its equivalent. A reduction of our paper circulating medium need not necessarily follow. This, however, would depend upon the law of demand and supply, though it should be borne in mind that by making legal-tender and bank notes convertible into coin or its equivalent their present specie value in the hands of their holders would be enhanced 100 per cent. Legislation for the accomplishment of a result so desirable is demanded by the highest public considerations. The Constitution contemplates that the circulating medium of the country shall be uniform in quality and value. At the time of the formation of that instrument the country had just emerged from the War of the Revolution, and was suffering from the effects of a redundant and worthless paper currency. The sages of that period were anxious to protect their posterity from the evils which they themselves had experienced. Hence in providing a circulating medium they conferred upon Congress the power to coin money and regulate the value thereof, at the same time prohibiting the States from making anything but gold and silver a tender in payment of debts. The anomalous condition of our currency is in striking contrast with that which was originally designed. Our circulation now embraces, first, notes of the national banks, which are made receivable for all dues to the Government, excluding imposts, and by all its creditors, excepting in payment of interest upon its bonds and the securities themselves; second, legal tender, issued by the United States, and which the law requires shall be received as well in payment of all debts between citizens as of all Government dues, excepting imposts; and, third, gold and silver coin. By the operation of our present system of finance however, the metallic currency, when collected, is reserved only for one class of Government creditors, who, holding its bonds, semiannually receive their interest in coin from the National Treasury. There is no reason which will be accepted as satisfactory by the people why those who defend us on the land and protect us on the sea; the pensioner upon the gratitude of the nation, bearing the scars and wounds received while in its service; the public servants in the various departments of the Government; the farmer who supplies the soldiers of the Army and the sailors of the Navy; the artisan who toils in the nation's workshops, or the mechanics and laborers who build its edifices and construct its forts and vessels of war, should, in payment of their just and hard-earned dues, receive depreciated paper, while another class of their countrymen, no more deserving are paid in coin of gold and silver. Equal and exact justice requires that all the creditors of the Government should be paid in a currency possessing a uniform value. This can only be accomplished by the restoration of the currency to the standard established by the Constitution, and by this means we would remove a discrimination which may, if it has not already done so, create a prejudice that may become deep-rooted and widespread and imperil the national credit. The feasibility of making our currency correspond with the constitutional standard may be seen by reference to a few facts derived from our commercial statistics. The aggregate product of precious metals in the United States from 1849 to 1867 amounted to $1,174,000,000, while for the same period the net exports of specie were $741,000,000. This shows an excess of product over net exports of $433,000,000. There are in the Treasury $103,407,985 in coin; in circulation in the States on the Pacific Coast about $40,000,000, and a few millions in the national and other banks--in all less than $160,000,000. Taking into consideration the specie in the country prior to 1849 and that produced since 1867, and we have more than $300,000,000 not accounted for by exportation or by returns of the Treasury, and therefore most probably remaining in the country. These are important facts, and show how completely the inferior currency will supersede the better, forcing it from circulation among the masses and causing it to be exported as a mere article of trade, to add to the money capital of foreign lands. They show the necessity of retiring our paper money, that the return of gold and silver to the avenues of trade may be invited and a demand created which will cause the retention at home of at least so much of the productions of our rich and inexhaustible gold-bearing fields as may be sufficient for purposes of circulation. It is unreasonable to expect a return to a sound currency so long as the Government and banks, by continuing to issue irredeemable notes, fill the channels of circulation with depreciated paper. Notwithstanding a coinage by our mints since 1849 of $874,000,000, the people are now strangers to the currency which was designed for their use and benefit, and specimens of the precious metals bearing the national device are seldom seen, except when produced to gratify the interest excited by their novelty. If depreciated paper is to be continued as the permanent currency of the country, and all our coin is to become a mere article of traffic and speculation. to the enhancement in price of all that is indispensable to the comfort of the people. it would be wise economy to abolish our mints, thus saving the nation the care and expense incident to such establishments, and let our precious metals be exported in bullion. The time has come, however, when the Government and national banks should be required to take the most efficient steps and make all necessary arrangements for a resumption of specie payments. Let specie payments once be earnestly inaugurated by the Government and banks, and the value of the paper circulation would directly approximate a specie standard. Specie payments having been resumed by the Government and banks, all notes or bills of paper issued by either of a less denomination than $20 should by law be excluded from circulation, so that the people may have the benefit and convenience of a gold and silver currency which in all their business transactions will be uniform in value at home and abroad. 
  Every man of property or industry, every man who desires to preserve what he honestly possesses or to obtain what he can honestly earn, has a direct interest in maintaining a safe circulating medium--such a medium as shall be real and substantial, not liable to vibrate with opinions, not subject to be blown up or blown down by the breath of speculation, but to be made stable and secure. A disordered currency is one of the greatest political evils. It undermines the virtues necessary for the support of the social system and encourages propensities destructive of its happiness; it wars against industry, frugality, and economy, and it fosters the evil spirits of extravagance and speculation.
 It has been asserted by one of our profound and most gifted statesmen that-- 
  Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money. This is the most effectual of inventions to fertilize the rich man's fields by the sweat of the poor man's brow. Ordinary tyranny, oppression, excessive taxation--these bear lightly on the happiness of the mass of the community compared with a fraudulent currency and the robberies committed by depreciated paper. Our own history has recorded for our instruction enough, and more than enough, of the demoralizing tendency, the injustice. and the intolerable oppression on the virtuous and well-disposed of a degraded paper currency authorized by law or in any way countenanced by government.
 It is one of the most successful devices, in times of peace or war, of expansions or revulsions, to accomplish the transfer of all the precious metals from the great mass of the people into the hands of the few, where they are hoarded in secret places or deposited under bolts and bars, while the people are left to endure all the inconvenience, sacrifice, and demoralization resulting from the use of depreciated and worthless paper. The Secretary of the Interior in his report gives valuable information in reference to the interests confided to the supervision of his Department, and reviews the operations of the Land Office, Pension Office, Patent Office, and Indian Bureau. During the fiscal year ending June 30. 1868, 6,655,700 acres of public land were disposed of. The entire cash receipts of the General Land Office for the same period were $1,632,745, being greater by $284,883 than the amount realized from the same sources during the previous year. The entries under the homestead law cover 2,328,923 acres, nearly one-fourth of which was taken under the act of June 21, 1866, which applies only to the States of Alabama, Mississippi, Louisiana, Arkansas, and Florida. On the 30th of June, 1868, 169,643 names were borne on the pension rolls, and during the year ending on that day the total amount paid for pensions, including the expenses of disbursement, was $24,010,982, being $5,391,025 greater than that expended for like purposes during the preceding year. During the year ending the 30th of September last the expenses of the Patent Office exceeded the receipts by $171, and, including reissues and designs, 14,153 patents 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, where they may be encouraged to abandon their nomadic habits and engage in agricultural and industrial pursuits. This policy, inaugurated many years since, has met with signal success whenever it has been pursued in good faith and with becoming liberality by the United States. The necessity for extending it as far as practicable in our relations with the aboriginal population is greater now than at any preceding period. Whilst we furnish subsistence and instruction to the Indians and guarantee the undisturbed enjoyment of their treaty rights, we should habitually insist upon the faithful observance of their agreement to remain within their respective reservations. This is the only mode by which collisions with other tribes and with the whites can be avoided and the safety of our frontier settlements secured. The companies constructing the railway from Omaha to Sacramento have been most energetically engaged in prosecuting the work, and it is believed that the line will be completed before the expiration of the next fiscal year. The 6 per cent bonds issued to these companies amounted on the 5th instant to $44,337,000, and additional work had been performed to the extent of $3,200,000. The Secretary of the Interior in August last invited my attention to the report of a Government director of the Union Pacific Railroad Company who had been specially instructed to examine the location, construction, and equipment of their road. I submitted for the opinion of the Attorney-General certain questions in regard to the authority of the Executive which arose upon this report and those which had from time to time been presented by the commissioners appointed to inspect each successive section of the work. After carefully considering the law of the case, he affirmed the right of the Executive to order, if necessary, a thorough revision of the entire road. Commissioners were thereupon appointed to examine this and other lines, and have recently submitted a statement of their investigations, of which the report of the Secretary of the Interior furnishes specific information. The report of the Secretary of War contains information of interest and importance respecting the several bureaus of the War Department and the operations of the Army. The strength of our military force on the 30th of September last was 48,000 men, and it is computed that by the 1st of January next this number will be decreased to 43,000. It is the opinion of the Secretary of War that within the next year a considerable diminution of the infantry force may be made without detriment to the interests of the country; and in view of the great expense attending the military peace establishment and the absolute necessity of retrenchment wherever it can be applied, it is hoped that Congress will sanction the reduction which his report recommends. While in 1860 sixteen thousand three hundred men cost the nation $16,472,000, the sum of $65,682,000 is estimated as necessary for the support of the Army during the fiscal year ending June 30, 1870. The estimates of the War Department for the last two fiscal years were, for 1867, $33,814,461, and for 1868 $25,205,669. The actual expenditures during the same periods were, respectively, $95,224,415 and $123,246,648. The estimate submitted in December last for the fiscal year ending June 30, 1869, was $77,124,707; the expenditures for the first quarter, ending the 30th of September last, were $27,219,117, and the Secretary of the Treasury gives $66,000,000 as the amount which will probably be required during the remaining three quarters, if there should be no reduction of the Army--making its aggregate cost for the year considerably in excess of ninety-three millions. The difference between the estimates and expenditures for the three fiscal years which have been named is thus shown to be $175,545,343 for this single branch of the public service. The report of the Secretary of the Navy exhibits the operations of that Department and of the Navy during the year. A considerable reduction of the force has been effected. There are 42 vessels, carrying 411 guns, in the six squadrons which are established in different parts of the world. Three of these vessels are returning to the United States and 4 are used as storeships, leaving the actual cruising force 35 vessels, carrying 356 guns. The total number of vessels in the Navy is 206, mounting 1,743 guns. Eighty-one vessels of every description are in use, armed with 696 guns. The number of enlisted men in the service, including apprentices, has been reduced to 8,500. An 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 of the North Pacific Ocean is advised in view of our recent acquisitions, our expanding commerce, and the increasing intercourse between the Pacific States and Asia. The naval pension fund, which consists of a moiety of the avails of prizes captured during the war, amounts to $14,000,000. Exception is taken to the act of 23d July last, which reduces the interest on the fund loaned to the Government by the Secretary, as trustee, to 3 per cent instead of 6 per cent, which was originally stipulated when the investment was made. An amendment of the pension laws is suggested to remedy omissions and defects in existing enactments. The expenditures of the Department during the last fiscal year were $20,120,394, and the estimates for the coming year amount to $20,993,414. The Postmaster-General's report furnishes a full and clear exhibit of the operations and condition of the postal service. The ordinary postal revenue for the fiscal year ending June 30, 1868. was $16,292,600, and the total expenditures, embracing all the service for which special appropriations have been made by Congress, amounted to $22,730,592, showing an excess of expenditures of $6,437,991. Deducting from the expenditures the sum of $1,896,525, the amount of appropriations for ocean-steamship and other special service, the excess of expenditures was $4,541,466. By using an unexpended balance in the Treasury of $3,800,000 the actual sum for which a special appropriation is required to meet the deficiency is $741,466. The causes which produced this large excess of expenditure over revenue were the restoration of service in the late insurgent States and the putting into operation of new service established by acts of Congress, which amounted within the last two years and a half to about 48,700 miles--equal to more than one-third of the whole amount of the service at the close of the war. New postal conventions with Great Britain, North Germany, Belgium, the Netherlands, Switzerland, and Italy, respectively, have been carried into effect. Under their provisions important improvements have resulted in reduced rates of international postage and enlarged mail facilities with European countries. The cost of the United States transatlantic ocean mail service since January 1, 1868, has been largely lessened under the operation of these new conventions, a reduction of over one-half having been effected under the new arrangements for ocean mail steamship service which went into effect on that date. The attention of Congress is invited to the practical suggestions and recommendations made in his report by the Postmaster-General. No important question has occurred during the last year in our accustomed cordial and friendly intercourse with Costa Rica, Guatemala, Honduras, San Salvador, France, Austria, Belgium, Switzerland, Portugal, the Netherlands, Denmark, Sweden and Norway, Rome, Greece, Turkey, Persia, Egypt, Liberia, Morocco, Tripoli, Tunis, Muscat, Siam, Borneo, and Madagascar. Cordial relations have also been maintained with the Argentine and the Oriental Republics. The expressed wish of Congress that our national good offices might be tendered to those Republics, and also to Brazil and Paraguay, for bringing to an end the calamitous war which has so long been raging in the valley of the La Plata, has been assiduously complied with and kindly acknowledged by all the belligerents. That important negotiation, however, has thus far been without result. Charles A. Washburn, late United States minister to Paraguay, having resigned. and being desirous to return to the United States, the rear-admiral commanding the South Atlantic Squadron was early directed to send a ship of war to Asuncion, the capital of Paraguay, to receive Mr. Washburn and his family and remove them from a situation which was represented to be endangered by faction and foreign war. The Brazilian commander of the allied invading forces refused permission to the Wasp to pass through the blockading forces, and that vessel returned to its accustomed anchorage. Remonstrance having been made against this refusal, it was promptly overruled, and the Wasp therefore resumed her errand, received Mr. Washburn and his family, and conveyed them to a safe and convenient seaport. In the meantime an excited controversy had arisen between the President of Paraguay and the late United States minister, which, it is understood, grew out of his proceedings in giving asylum in the United States legation to alleged enemies of that Republic. The question of the right to give asylum is one always difficult and often productive of great embarrassment. In states well organized and established, foreign powers refuse either to concede or exercise that right, except as to persons actually belonging to the diplomatic service. On the other hand, all such powers insist upon exercising the right of asylum in states where the law of nations is not fully acknowledged, respected. and obeyed. The President of Paraguay is understood to have opposed to Mr. Washburn's proceedings the injurious and very improbable charge of personal complicity in insurrection and treason. The correspondence, however, has not yet reached the United States. Mr. Washburn, 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, committed to prison, and there subjected to torture for the purpose of procuring confessions of their own criminality and testimony to support the President' s allegation. against the United States minister. Mr. McMahon, the newly appointed minister to Paraguay, having reached the La Plata, has been instructed to proceed without delay to Asuncion, there to investigate the whole subject. The rear-admiral commanding the United States South Atlantic Squadron has been directed to attend the new minister with a proper naval force to sustain such just demands as the occasion may require, and to vindicate the rights of the United States citizens referred to and of any others who may be exposed to danger in the theater of war. With these exceptions, friendly relations have been maintained between the United States and Brazil and Paraguay. Our relations during the past year with Bolivia, Ecuador, Peru, and Chile have become especially friendly and cordial. Spain and the Republics of Peru, Bolivia, and Ecuador have expressed their willingness to accept the mediation of the United States for terminating the war upon the South Pacific coast. Chile has not finally declared upon the question. In the meantime the conflict has practically exhausted itself, since no belligerent or hostile movement has been made by either party during the last two years, and there are no indications of a present purpose to resume hostilities on either side. Great Britain and France have cordially seconded our proposition of mediation, and I do not forego the hope that it may soon be accepted by all the belligerents and lead to a secure establishment of peace and friendly relations between the Spanish American Republics of the Pacific and Spain--a result which would be attended with common benefits to the belligerents and much advantage to all commercial nations. I communicate, for the consideration of Congress, a correspondence which shows that the Bolivian Republic has established the extremely liberal principle of receiving into its citizenship any citizen of the United States, or of any other of the American Republics, upon the simple condition of voluntary registry. The correspondence herewith submitted will be found painfully replete with accounts of the ruin and wretchedness produced by recent earthquakes, of unparalleled severity, in the Republics of Peru, Ecuador, and Bolivia. The diplomatic agents and naval officers of the United States who were present in those countries at the time of those disasters furnished all the relief in their power to the sufferers, and were promptly rewarded with grateful and touching acknowledgments by the Congress of Peru. An appeal to the charity of our fellow-citizens has been answered by much liberality. In this connection I submit an appeal which has been made by the Swiss Republic, whose Government and institutions are kindred to our own, in behalf of its inhabitants, who are suffering extreme destitution, produced by recent devastating inundations. Our relations with Mexico during the year have been marked by an increasing growth of mutual confidence. The Mexican Government has not yet acted upon the three treaties celebrated here last summer for establishing the rights of naturalized citizens upon a liberal and just basis, for regulating consular powers, and for the adjustment of mutual claims. All commercial nations, as well as all friends of republican institutions, have occasion to regret the frequent local disturbances which occur in some of the constituent States of Colombia. Nothing has occurred, however, to affect the harmony and cordial friendship which have for several years existed between that youthful and vigorous Republic and our own. Negotiations are pending with a view to the survey and construction of a ship canal across the Isthmus of Darien, under the auspices of the United States. I hope to be able to submit the results of that negotiation to the Senate during its present session. The very liberal treaty which was entered into last year by the United States and Nicaragua has been ratified by the latter Republic. Costa Rica, with the earnestness of a sincerely friendly neighbor, solicits a reciprocity of trade, which I commend to the consideration of Congress. The convention created by treaty between the United States and Venezuela in July, 1865, for the 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 States of Venezuela has been subverted. A provisional government having been instituted under circumstances which promise durability, it has been formally recognized. I have been reluctantly obliged to ask explanation and satisfaction for national injuries committed by the President of Hayti. The political and social condition of the Republics of Hayti and St. Domingo is very unsatisfactory. and painful. The abolition of slavery, which has been carried into effect throughout the island of St. Domingo and the entire West Indies, except the Spanish islands of Cuba and Porto Rico, has been followed by a profound popular conviction of the rightfulness of republican institutions and an intense desire to secure them. The attempt, however, to establish republics there encounters many obstacles, most of which may be supposed to result from long-indulged habits of colonial supineness and dependence upon European monarchical powers. While the United States have on all occasions professed a decided unwillingness that any part of this continent or of its adjacent islands shall be made a theater for a new establishment of monarchical power, too little has been done by us, on the other hand, to attach the communities by which we are surrounded to our own country, or to lend even a moral support to the efforts they are so resolutely and so constantly making to secure republican institutions for themselves. It is indeed a question of grave consideration whether our recent and present example is not calculated to check the growth and expansion of free principles, and make those communities distrust, if not dread, a government which at will consigns to military domination States that are integral parts of our Federal Union, and, while ready to resist any attempts by other nations to extend to this hemisphere the monarchical institutions of Europe, assumes to establish over a large portion of its people a rule more absolute, harsh, and tyrannical than any known to civilized powers. The acquisition of Alaska was made with the view of extending national jurisdiction and republican principles in the American hemisphere. Believing that a further step could be taken in the same direction, I last year entered into a treaty with the King of Denmark for the purchase of the islands of St. Thomas and St. John, on the best terms then attainable, and with the express consent of the people of those islands. This treaty still remains under consideration in the Senate. A new convention has been entered into with Denmark, enlarging the time fixed for final ratification of the original treaty. Comprehensive national policy would seem to sanction the acquisition and incorporation into our Federal Union of the several adjacent continental and insular communities as speedily as it can be done peacefully, lawfully, and without any violation of national justice, faith, or honor. Foreign possession or control of those communities has hitherto hindered the growth and impaired the influence of the United States. Chronic revolution and anarchy there would be equally injurious. Each one of them, when firmly established as an independent republic, or when incorporated into the United States, would be a new source of strength and power. Conforming my Administration to these principles, I have or no occasion lent support or toleration to unlawful expeditions set on foot upon the plea of republican propagandism or of national extension or aggrandizement. The necessity, however, of repressing such unlawful movements clearly indicates the duty which rests upon us of adapting our legislative action to the new circumstances of a decline of European monarchical power and influence and the increase of American republican ideas, interests, and sympathies. It can not be long before it will become necessary for this Government to lend some effective aid to the solution of the political and social problems which are continually kept before the world by the two Republics of the island of St. Domingo, and which are now disclosing themselves more distinctly than heretofore in the island of Cuba. The subject is commended to your consideration with all the more earnestness because I am satisfied that the time has arrived when even so direct a proceeding as a proposition for an annexation of the two Republics of the island of St. Domingo would not only receive the consent of the people interested, but would also give satisfaction to all other foreign nations. I am aware that upon the question of further extending our possessions it is apprehended by some that our political system can not 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 intercommunication between all portions of the earth the principles of free government, as embraced in our Constitution, if faithfully maintained and carried out, would prove of sufficient strength and breadth to comprehend within their sphere and influence the civilized nations of the world. The attention of the Senate and of Congress is again respectfully invited to the treaty for the establishment of commercial reciprocity with the Hawaiian Kingdom entered into last year, and already ratified by that Government. The attitude of the United States toward these islands is not very different from that in which they stand toward the West Indies. It is known and felt by the Hawaiian Government and people that their Government and institutions are feeble and precarious; that the United States, being so near a neighbor, would be unwilling to see the islands pass under foreign control. Their prosperity is continually disturbed by expectations and alarms of unfriendly political proceedings, as well from the United States as from other foreign powers. A reciprocity treaty, while it could not materially diminish the revenues of the United States, would be a guaranty of the good will and forbearance of all nations until the people of the islands shall of themselves, at no distant day, voluntarily apply for admission into the Union. The Emperor of Russia has acceded to the treaty negotiated here in January last for the security of trade-marks in the interest of manufacturers and commerce. I have invited his attention to the importance of establishing, now while it seems easy and practicable, a fair and equal regulation of the vast fisheries belonging to the two nations in the waters of the North Pacific Ocean. The two treaties between the United States and Italy for the regulation of consular powers and the extradition of criminals, negotiated and ratified here during the last session of Congress, have been accepted and confirmed by the Italian Government. A liberal consular convention which has been negotiated with Belgium will be submitted to the Senate. The very important treaties which were negotiated between the United States and North Germany and Bavaria for the regulation of the rights of naturalized citizens have been duly ratified and exchanged, and similar treaties have been entered into with the Kingdoms of Belgium and Wurtemberg and with the Grand Duchies of Baden and Hesse-Darmstadt. I hope soon to be able to submit equally satisfactory conventions of the same character now in the course of negotiation with the respective Governments of Spain, Italy, and the Ottoman Empire. Examination of claims against the United States by the Hudsons Bay Company and the Puget Sound Agricultural Company, on account of certain possessory rights in the State of Oregon and Territory of Washington, alleged by those companies in virtue of provisions of the treaty between the United States and Great Britain of June 15, 1846, has been diligently prosecuted, under the direction of the joint international commission to which they were submitted for adjudication by treaty between the two Governments of July 1, 1863, and will, it is expected, be concluded at an early day. No practical regulation concerning colonial trade and the fisheries can be accomplished by treaty between the United States and Great Britain until Congress shall have expressed their judgment concerning the principles involved. Three other questions, however, between the United States and Great Britain remain open for adjustment. These are the mutual rights of naturalized citizens, the boundary question involving the title to the island of San Juan, on the Pacific coast, and mutual claims arising since the year 1853 of the citizens and subjects of the two countries for injuries and depredations committed under the authority of their respective Governments. Negotiations upon these subjects are pending, and I am not without hope of being able to lay before the Senate, for its consideration during the present session, protocols calculated to bring to an end these justly exciting and long-existing controversies. We are not advised of the action of the Chinese Government upon the liberal and auspicious treaty which was recently celebrated with its plenipotentiaries at this capital. Japan remains a theater of civil war, marked by religious incidents and political severities peculiar to that long-isolated Empire. The Executive has hitherto maintained strict neutrality among the belligerents, and acknowledges with pleasure that it has been frankly and fully sustained in that course by the enlightened concurrence and cooperation of the other treaty powers, namely Great Britain, France, the Netherlands, North Germany, and Italy. Spain having recently undergone a revolution marked by extraordinary unanimity and preservation of order, the provisional government established at Madrid has been recognized, and the friendly intercourse which has so long happily existed between the two countries remains unchanged. I renew the recommendation contained in my communication to Congress dated the 18th July last--a copy of which accompanies this message that the judgment of the people should be taken on the propriety of so amending the Federal Constitution that it shall provide-- First. For an election of President and Vice-President by a direct vote of the people, instead of through the agency of electors, and making them ineligible for reelection to a second term. Second. For a distinct designation of the person who shall discharge the duties of President in the event of a vacancy in that office by the death, resignation, or removal of both the President and Vice-President. Third. For the election of Senators of the United States directly by the people of the several States, instead of by the legislatures; and Fourth. For the limitation to a period of years of the terms of Federal judges. Profoundly impressed with the propriety of making these important modifications in the Constitution, I respectfully submit them for the early and mature consideration of Congress. We should, as far as possible, remove all pretext for violations 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 the whole people is sacredly obligatory upon all." In the performance of a duty imposed upon me by the Constitution, I have thus communicated to Congress information of the state of the Union and recommended for their consideration such measures as have seemed to me necessary and expedient. If carried into effect, they will hasten the accomplishment of the great and beneficent purposes for which the Constitution was ordained, and which it comprehensively states were "to form a more perfect Union, establish justice, insure domestic tranquillity, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity." In Congress are vested all legislative powers, and upon them devolves the responsibility as well for framing unwise and excessive laws as for neglecting to devise and adopt measures absolutely demanded by the wants of the country. Let us earnestly hope that before the expiration of our respective terms of service, now rapidly drawing to a close, an all-wise Providence will so guide our counsels as to strengthen and preserve the Federal Unions, inspire reverence for the Constitution, restore prosperity and happiness to our whole people, and promote "on earth peace, good will toward men."
Upon the reassembling of Congress it again becomes my duty to call your attention to the state of the Union and to its continued disorganized condition under the various laws which have been passed upon the subject of reconstruction. It may be safely assumed as an axiom in the government of 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 revocation of injurious and oppressive measures is the greatest good that can be conferred upon a nation. The legislator or ruler who has the wisdom and magnanimity to retrace his steps when convinced of error will sooner or later be rewarded with the respect and gratitude of an intelligent and patriotic people. Our own history, although embracing a period less than a century, affords abundant proof that most, if not all, of our domestic troubles are directly traceable to violations of the organic law and excessive legislation. The most striking illustrations of this fact are furnished by the enactments of the past three years upon the question of reconstruction. After a fair trial they have substantially failed 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 military dependencies in each of which the people have been made subject to the arbitrary will of the commanding general. Although the Constitution requires that each State shall be represented in Congress, Virginia, Mississippi, and Texas are yet excluded from the two Houses, and, contrary to the express provisions of that instrument were denied participation in the recent election for a President and Vice-President of the United States. The attempt to place the white population under the domination of persons of color in the South has impaired, if not destroyed, the kindly relations that had previously existed between them: and mutual distrust has engendered a feeling of animosity which leading in some instances to collision and bloodshed, has prevented that cooperation between the two races so essential to the success of industrial enterprise in the Southern States. Nor have the inhabitants of those States alone suffered from the disturbed condition of affairs growing out of these Congressional enactments. The entire Union has been agitated by grave apprehensions of troubles which might again involve the peace of the nation; its interests have been injuriously affected by the derangement of business and labor, and the consequent want of prosperity throughout that portion of the country. The Federal Constitution--the magna charta of American rights, under whose wise and salutary provisions we have successfully conducted all our domestic and foreign affairs, sustained ourselves in peace and in war, and become a great nation among the powers of the earth--must assuredly be now adequate to the settlement of questions growing out of the civil war, waged alone for its vindication. This great fact is made most manifest by the condition of the country when Congress assembled in the month of December, 1865. Civil strife had ceased, the spirit of rebellion had spent its entire force, in the Southern States the people had warmed into national life, and throughout the whole country a healthy reaction in public sentiment had taken place. By the application of the simple yet effective provisions of the Constitution the executive department, with the voluntary aid of the States, had brought the work of restoration as near completion as was within the scope of its authority, and the nation was encouraged by the prospect of an early and satisfactory adjustment of all its difficulties. Congress, however, intervened, and, refusing to perfect the work so nearly consummated, declined to admit members from the unrepresented States, adopted a series of measures which arrested the progress of restoration, frustrated all that had been so successfully accomplished, and, after three years of agitation and strife, has left the country further from the attainment of union and fraternal feeling than at the inception of the Congressional plan of reconstruction. It needs no argument to show that legislation which has produced such baneful consequences should be abrogated, or else made to conform to the genuine principles of republican government. Under the influence of party passion and sectional prejudice, other acts have been passed not warranted by the Constitution. Congress has already been made familiar with my views respecting the "tenure-of-office bill." Experience has proved that its repeal is demanded by the best interests of the country, and that while it remains in force the President can not enjoin that rigid accountability of public officers so essential 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 accordance with the original design of the Federal Constitution. The act of March 2, 1867, making appropriations for the support of the Army for the year ending June 30, 1868, and for other purposes, contains provisions which interfere with the President's constitutional functions as Commander in Chief of the Army and deny to States of the Union the right to protect themselves by means of their own militia. These provisions should be at once annulled; for while the first might, in times of great emergency, seriously embarrass the Executive in efforts to employ and direct the common strength of the nation for its protection and preservation, the other is contrary to the express declaration of the Constitution that "a well-regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed." It is believed that the repeal of all such laws would be accepted by the American people as at least a partial return to the fundamental principles of the Government, and an indication that hereafter the Constitution is to be made the nation's safe and unerring guide. They can be productive of no permanent benefit to the country, and should not be permitted to stand as so many monuments of the deficient wisdom which has characterized our recent legislation. The condition of our finances demands the early and earnest consideration of Congress. 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 4,000,000 people. Increasing each decade about 33 per cent, it reached in 1860 31,000,000, an increase of 700 per cent on the population in 1790. In 1869 it is estimated that it will reach 38,000,000, or an increase of 868 per cent in seventy-nine years. The annual expenditures of the Federal Government in 1791 were $4,200,000; in 1820, $18.200,000; in 1850, forty-one millions; in 1860, sixty-three millions; in 1865, nearly thirteen hundred millions; and in 1869 it is estimated by the Secretary of the Treasury, in his last annual report, that they will be three hundred and seventy-two millions. By comparing the public disbursements of 1869, as estimated, with those of 1791, it will be seen that the increase of expenditure since the beginning of the Government has been 8,618 per cent, while the increase of the population for the same period was only 868 per cent. Again, the expenses of the Government in 1860, the year of peace immediately preceding the war, were only sixty--three millions, while in 1869, the year of peace three years after the war it is estimated they will be three hundred and seventy-two millions, an increase of 489 per cent, while the increase of population was only 21 per cent for the same period. These statistics further show that in 1791 the annual national expenses, compared with the population, were little more than $1 per capita, and in 1860 but $2 per capita; while in 1869 they will reach the extravagant sum of $9.78 per capita. It will be observed that all these statements refer to and exhibit the disbursements of peace periods. It may, therefore, be of interest to compare the expenditures of the three war periods--the war with Great Britain, the Mexican War, and the War of the Rebellion. In 1814 the annual expenses incident to the War of 1812 reached their highest amount--about thirty-one millions--while our population slightly exceeded 8,000,000, showing an expenditure of only $3.80 per capita. In 1847 the expenditures growing out of the war with Mexico reached fifty-five millions, and the population about 21,000,000, giving only $2.60 per capita for the war expenses of that year. In 1865 the expenditures called for by the rebellion reached the vast amount of twelve hundred and ninety millions, which, compared with a population of 34,000,000, gives $38.20 per capita. From the 4th day of March, 1789, to the 30th of June, 1861, the entire expenditures of the Government were $1,700,000,000. During that period we were engaged in wars with Great Britain and Mexico, and were involved in hostilities with powerful Indian tribes; Louisiana was purchased from France at a cost of $15,000,000; Florida was ceded to us by Spain for five millions; California was acquired from Mexico for fifteen millions, and the territory of New Mexico was obtained from Texas for the sum of ten millions. Early in 1861 the War of the Rebellion commenced; and from the 1st of July of that year to the 30th of June, 1865, the public expenditures reached the enormous aggregate of thirty-three hundred millions. Three years of peace have intervened, and during that time the disbursements of the Government have successively been five hundred and twenty millions, three hundred 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 the fiscal year ending the 30th of June, 1869, we obtain a total expenditure of $1,600,000,000 during the four years immediately succeeding the war, or nearly as much as was expended during the seventy-two years that preceded the rebellion and embraced the extraordinary expenditures already named. These startling facts clearly illustrate the necessity of retrenchment in all branches of the public service. Abuses which were tolerated during the war for the preservation of the nation will not be endured by the people, now that profound peace prevails. The receipts from internal revenues and customs have during the past three years gradually diminished, and the continuance of useless and extravagant expenditures will involve us in national bankruptcy, or else make inevitable an increase of taxes. already too onerous and in many respects obnoxious on account of their inquisitorial character. One hundred millions annually are expended for the military force, a large portion of which is employed in the execution of laws both unnecessary and unconstitutional; one hundred and fifty millions are required each year to pay the interest on the public debt: an army of taxgatherers impoverishes the nation, and public agents, placed by Congress beyond the control of the Executive, divert from their legitimate purposes large sums of money which they collect from the people in the name of the Government. Judicious legislation and prudent economy can alone remedy defects and avert evils which, if suffered to exist, can not fail to diminish confidence in the public councils and weaken the attachment and respect of the people toward their political institutions. Without proper care the small balance which it is estimated will remain in the Treasury at the close of the present fiscal year will not be realized, and additional millions be added to a debt which is now enumerated by billions. It is shown by the able and comprehensive report of the Secretary of the Treasury that the receipts for the fiscal year ending June 30, 1868, were $405,638,083, and that the expenditures for the same period were $377,340,284, leaving in the Treasury a surplus of $28,297,798. It is estimated that the receipts during the present fiscal year, ending June 30, 1869, will be $341,392,868 and the expenditures $336,152,470, showing a small balance of $5,240,398 in favor of the Government. For the fiscal year ending June 30, 1870, it is estimated 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 our public indebtedness, 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 $75,000,000, created during the War of the Revolution. This amount had been reduced to $45,000,000 when, in 1812, war was declared against Great Britain. The three years' struggle that followed largely increased the national obligations, and in 1816 they had attained the sum of $127,000,000. Wise and economical legislation, however, enabled the Government to pay the entire amount within a period of twenty years, and the extinguishment of the national debt filled the land with rejoicing and was one of the great events of President Jackson's Administration. After its redemption a large fund remained in the Treasury, which was deposited for safe-keeping with the several States. on condition that it should be returned when required by the public wants. In 1849--the year after the termination of an expensive war with Mexico--we found ourselves involved in a debt of $64,000,000; and this was the amount owed by the Government in 1860, just prior to the outbreak of the rebellion. In the spring of 1861 our civil war commenced. Each year of its continuance made an enormous addition to the debt: and when. in the spring of 1865, the nation successfully emerged from the conflict, the obligations of the Government had reached the immense sum of $2.873,992,909. The Secretary of the Treasury shows that on the 1st day of November, 1867, this amount had been reduced to $2,491,504,450; but at the same time his report exhibits an increase during the past year of $35,625,102, for the debt on the 1st 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 of $11,000,000, making a total increase during thirteen months of $46,500,000. In my message to Congress December 4, 1865, it was suggested that a policy should be devised which, without being oppressive to the people, would at once begin to effect a reduction of the debt, and, if persisted in, discharge it fully within a definite number of years. The Secretary of the Treasury forcibly recommends legislation of this character, and justly urges that the longer it is deferred the more difficult must become its accomplishment. We should follow the wise precedents 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 sustain moneyed monopolies in our own and other lands. Our foreign debt is already computed by the Secretary of the Treasury at $850,000,000; citizens of foreign countries receive interest upon a large portion of our securities, and American taxpayers are made to contribute large sums for their support. The idea that such a debt is to become permanent should be at all times discarded as involving taxation too heavy to be borne. and payment once in every sixteen years, at the present rate of interest, of an amount equal to the original sum. This vast debt, if permitted to become permanent and increasing, must eventually be gathered into the hands of a few, and enable them to exert a dangerous and controlling power in the affairs of the Government. The borrowers would become servants to the lenders, the lenders the masters of the people. We now pride ourselves upon having given freedom to 4,000,000 of the colored race; it will then be our shame that 40,000,000 of people, by their own toleration of usurpation and profligacy, have suffered themselves to become enslaved, and merely exchanged slave owners for new taskmasters in the shape of bondholders and taxgatherers. Besides, permanent debts pertain to monarchical governments, and, tending to monopolies, perpetuities, and class legislation, are totally irreconcilable with free institutions. introduced into our republican system, they would gradually but surely sap its foundations, eventually subvert our governmental fabric, and erect upon its ruins a moneyed aristocracy. It is our sacred duty to transmit unimpaired to our posterity the blessings of liberty which were bequeathed to us by the founders of the Republic. and by our example teach those who are to follow us carefully to avoid the dangers which threaten a free and independent people. Various plans have been proposed for the payment of the public debt. However they may have varied as to the time and mode in which it should be redeemed. there seems to be a general concurrence as to the propriety and justness of a reduction in the present rate of interest. The Secretary of the Treasury in his report recommends 5 per cent; Congress, in a bill passed prior to adjournment on the 27th of July last. agreed upon 4 and 4 1/2 per cent; while by many 3 per cent has been held to be an amply sufficient return for the investment. The general impression as to the exorbitancy of the existing rate of interest has led to an inquiry 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 obtained was in real money three or four hundred per cent less than the obligations which it issued in return. It can not be denied that we are paying an extravagant percentage for the use of the money borrowed, which was paper currency, greatly depreciated below the value of coin. This fact is made apparent when we consider that bondholders receive from the Treasury upon each dollar they own in Government securities 6 per cent in gold, which is nearly or quite equal to 9 per cent in currency; that the bonds are then converted into capital for the national banks, upon which those institutions issue their circulation, bearing 6 per cent interest; and that they are exempt from taxation by the Government and the States, and thereby enhanced 2 per cent in the hands of the holders. We thus have an aggregate of 17 per cent which may be received upon each dollar by the owners of Government securities. A system that produces such results is justly regarded as favoring a few at the expense of the many, and has led to the further inquiry whether our bondholders, in view of the large profits which they have enjoyed, would themselves be averse to a settlement of our indebtedness upon a plan which would yield them a fair remuneration and at the same time be just to the taxpayers of the nation. Our national credit should be sacredly observed, but in making provision for our creditors we should not forget what is due to the masses of the people. It may be assumed that the holders of our securities have already received upon their bonds a larger amount than their original investment, measured by a gold standard. Upon this statement of facts it would seem but just and equitable that the 6 per cent interest now paid by the Government should be applied to the reduction of the principal in semiannual installments, which in sixteen years and eight months would liquidate the entire national debt. Six per cent in gold would at present rates be equal to 9 per cent in currency, and equivalent to the payment of the debt one and a half times in a fraction less than seventeen years. This, in connection with all the other advantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this they should be satisfied. The lessons of the past admonish the lender that it is not well to be over-anxious in exacting from the borrower rigid compliance with the letter of the bond. If provision be made for the payment of the indebtedness of the Government in the manner suggested, our nation will rapidly recover its wonted prosperity. Its interests require that some measure should be taken to release the large amount of capital invested in the securities of the Government. It is not now merely unproductive, but in taxation annually consumes $150,000,000, which would otherwise be used by our enterprising people in adding to the wealth of the nation. Our commerce, which at one time successfully rivaled that of the great maritime powers, has rapidly diminished, and our industrial interests are in a depressed and languishing condition. The development of our inexhaustible resources is checked, and the fertile fields of the South are becoming waste for want of means to till them. With the release of capital, new life would be infused into the paralyzed energies of our people and activity and vigor imparted to every branch of industry. Our people need encouragement in their efforts to recover from the effects of the rebellion and of injudicious legislation, and it should be the aim of the Government to stimulate them by the prospect of an early release from the burdens which impede their prosperity. If we can not take the burdens from their shoulders, we should at least manifest a willingness to help to bear them. In referring to the condition of the circulating medium, I shall merely reiterate substantially that portion of my last annual message which relates to that subject. The proportion which the currency of any country should bear to the whole value of the annual produce circulated by its means is a question upon which political economists have not agreed. Nor can it be controlled by legislation, but must be left to the irrevocable laws which everywhere regulate commerce and trade. The circulating medium will ever irresistibly flow to those points where it is in greatest demand. The law of demand and supply is as unerring as that which regulates the tides of the ocean; and, indeed, currency, like the tides, has its ebbs and flows throughout the commercial world. At the beginning of the rebellion the bank-note circulation of the country amounted to not much more than $200,000,000; now the circulation of national-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 issues when compared with a metallic or convertible currency. For this purpose let us inquire how much gold and silver could be purchased by the seven hundred millions of paper money now in circulation. Probably not more than half the amount of the latter; showing that when our paper currency is compared with gold and silver its commercial value is compressed into three hundred and fifty millions. This striking fact makes it the obvious duty of the Government, as early as may be consistent with the principles of sound political economy, to take such measures as will enable the holders of its notes and those of the national banks to convert them, without loss, into specie or its equivalent. A reduction of our paper circulating medium need not necessarily follow. This, however, would depend upon the law of demand and supply, though it should be borne in mind that by making legal-tender and bank notes convertible into coin or its equivalent their present specie value in the hands of their holders would be enhanced 100 per cent. Legislation for the accomplishment of a result so desirable is demanded by the highest public considerations. The Constitution contemplates that the circulating medium of the country shall be uniform in quality and value. At the time of the formation of that instrument the country had just emerged from the War of the Revolution, and was suffering from the effects of a redundant and worthless paper currency. The sages of that period were anxious to protect their posterity from the evils which they themselves had experienced. Hence in providing a circulating medium they conferred upon Congress the power to coin money and regulate the value thereof, at the same time prohibiting the States from making anything but gold and silver a tender in payment of debts. The anomalous condition of our currency is in striking contrast with that which was originally designed. Our circulation now embraces, first, notes of the national banks, which are made receivable for all dues to the Government, excluding imposts, and by all its creditors, excepting in payment of interest upon its bonds and the securities themselves; second, legal tender, issued by the United States, and which the law requires shall be received as well in payment of all debts between citizens as of all Government dues, excepting imposts; and, third, gold and silver coin. By the operation of our present system of finance however, the metallic currency, when collected, is reserved only for one class of Government creditors, who, holding its bonds, semiannually receive their interest in coin from the National Treasury. There is no reason which will be accepted as satisfactory by the people why those who defend us on the land and protect us on the sea; the pensioner upon the gratitude of the nation, bearing the scars and wounds received while in its service; the public servants in the various departments of the Government; the farmer who supplies the soldiers of the Army and the sailors of the Navy; the artisan who toils in the nation's workshops, or the mechanics and laborers who build its edifices and construct its forts and vessels of war, should, in payment of their just and hard-earned dues, receive depreciated paper, while another class of their countrymen, no more deserving are paid in coin of gold and silver. Equal and exact justice requires that all the creditors of the Government should be paid in a currency possessing a uniform value. This can only be accomplished by the restoration of the currency to the standard established by the Constitution, and by this means we would remove a discrimination which may, if it has not already done so, create a prejudice that may become deep-rooted and widespread and imperil the national credit. The feasibility of making our currency correspond with the constitutional standard may be seen by reference to a few facts derived from our commercial statistics. The aggregate product of precious metals in the United States from 1849 to 1867 amounted to $1,174,000,000, while for the same period the net exports of specie were $741,000,000. This shows an excess of product over net exports of $433,000,000. There are in the Treasury $103,407,985 in coin; in circulation in the States on the Pacific Coast about $40,000,000, and a few millions in the national and other banks--in all less than $160,000,000. Taking into consideration the specie in the country prior to 1849 and that produced since 1867, and we have more than $300,000,000 not accounted for by exportation or by returns of the Treasury, and therefore most probably remaining in the country. These are important facts, and show how completely the inferior currency will supersede the better, forcing it from circulation among the masses and causing it to be exported as a mere article of trade, to add to the money capital of foreign lands. They show the necessity of retiring our paper money, that the return of gold and silver to the avenues of trade may be invited and a demand created which will because the retention at home of at least so much of the productions of our rich and inexhaustible gold-bearing fields as may be sufficient for purposes of circulation. It is unreasonable to expect a return to a sound currency so long as the Government and banks, by continuing to issue irredeemable notes, fill the channels of circulation with depreciated paper. Notwithstanding a coinage by our mints since 1849 of $874,000,000, the people are now strangers to the currency which was designed for their use and benefit, and specimens of the precious metals bearing the national device are seldom seen, except when produced to gratify the interest excited by their novelty. If depreciated paper is to be continued as the permanent currency of the country, and all our coin is to become a mere article of traffic and speculation. to the enhancement in price of all that is indispensable to the comfort of the people. it would be wise economy to abolish our mints, thus saving the nation the care and expense incident to such establishments, and let our precious metals be exported in bullion. The time has come, however, when the Government and national banks should be required to take the most efficient steps and make all necessary arrangements for a resumption of specie payments. Let specie payments once be earnestly inaugurated by the Government and banks, and the value of the paper circulation would directly approximate a specie standard. Specie payments having been resumed by the Government and banks, all notes or bills of paper issued by either of a less denomination than $20 should by law be excluded from circulation, so that the people may have the benefit and convenience of a gold and silver currency which in all their business transactions will be uniform in value at home and abroad. Every man of property or industry, every man who desires to preserve what he honestly possesses or to obtain what he can honestly earn, has a direct interest in maintaining a safe circulating medium--such a medium as shall be real and substantial, not liable to vibrate with opinions, not subject to be blown up or blown down by the breath of speculation, but to be made stable and secure. A disordered currency is one of the greatest political evils. It undermines the virtues necessary for the support of the social system and encourages propensities destructive of its happiness; it wars against industry, frugality, and economy, and it fosters the evil spirits of extravagance and speculation. It has been asserted by one of our profound and most gifted statesmen that-- Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money. This is the most effectual of inventions to fertilize the rich man's fields by the sweat of the poor man's brow. Ordinary tyranny, oppression, excessive taxation--these bear lightly on the happiness of the mass of the community compared with a fraudulent currency and the robberies committed by depreciated paper. Our own history has recorded for our instruction enough, and more than enough, of the demoralizing tendency, the injustice. and the intolerable oppression on the virtuous and well-disposed of a degraded paper currency authorized by law or in any way countenanced by government. It is one of the most successful devices, in times of peace or war, of expansions or revulsions, to accomplish the transfer of all the precious metals from the great mass of the people into the hands of the few, where they are hoarded in secret places or deposited under bolts and bars, while the people are left to endure all the inconvenience, sacrifice, and demoralization resulting from the use of depreciated and worthless paper. The Secretary of the Interior in his report gives valuable information in reference to the interests confided to the supervision of his Department, and reviews the operations of the Land Office, Pension Office, Patent Office, and Indian Bureau. During the fiscal year ending June 30. 1868, 6,655,700 acres of public land were disposed of. The entire cash receipts of the General Land Office for the same period were $1,632,745, being greater by $284,883 than the amount realized from the same sources during the previous year. The entries under the homestead law cover 2,328,923 acres, nearly one-fourth of which was taken under the act of June 21, 1866, which applies only to the States of Alabama, Mississippi, Louisiana, Arkansas, and Florida. On the 30th of June, 1868, 169,643 names were borne on the pension rolls, and during the year ending on that day the total amount paid for pensions, including the expenses of disbursement, was $24,010,982, being $5,391,025 greater than that expended for like purposes during the preceding year. During the year ending the 30th of September last the expenses of the Patent Office exceeded the receipts by $171, and, including reissues and designs, 14,153 patents 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, where they may be encouraged to abandon their nomadic habits and engage in agricultural and industrial pursuits. This policy, inaugurated many years since, has met with signal success whenever it has been pursued in good faith and with becoming liberality by the United States. The necessity for extending it as far as practicable in our relations with the aboriginal population is greater now than at any preceding period. Whilst we furnish subsistence and instruction to the Indians and guarantee the undisturbed enjoyment of their treaty rights, we should habitually insist upon the faithful observance of their agreement to remain within their respective reservations. This is the only mode by which collisions with other tribes and with the whites can be avoided and the safety of our frontier settlements secured. The companies constructing the railway from Omaha to Sacramento have been most energetically engaged in prosecuting the work, and it is believed that the line will be completed before the expiration of the next fiscal year. The 6 per cent bonds issued to these companies amounted on the 5th instant to $44,337,000, and additional work had been performed to the extent of $3,200,000. The Secretary of the Interior in August last invited my attention to the report of a Government director of the Union Pacific Railroad Company who had been specially instructed to examine the location, construction, and equipment of their road. I submitted for the opinion of the Attorney-General certain questions in regard to the authority of the Executive which arose upon this report and those which had from time to time been presented by the commissioners appointed to inspect each successive section of the work. After carefully considering the law of the case, he affirmed the right of the Executive to order, if necessary, a thorough revision of the entire road. Commissioners were thereupon appointed to examine this and other lines, and have recently submitted a statement of their investigations, of which the report of the Secretary of the Interior furnishes specific information. The report of the Secretary of War contains information of interest and importance respecting the several bureaus of the War Department and the operations of the Army. The strength of our military force on the 30th of September last was 48,000 men, and it is computed that by the 1st of January next this number will be decreased to 43,000. It is the opinion of the Secretary of War that within the next year a considerable diminution of the infantry force may be made without detriment to the interests of the country; and in view of the great expense attending the military peace establishment and the absolute necessity of retrenchment wherever it can be applied, it is hoped that Congress will sanction the reduction which his report recommends. While in 1860 sixteen thousand three hundred men cost the nation $16,472,000, the sum of $65,682,000 is estimated as necessary for the support of the Army during the fiscal year ending June 30, 1870. The estimates of the War Department for the last two fiscal years were, for 1867, $33,814,461, and for 1868 $25,205,669. The actual expenditures during the same periods were, respectively, $95,224,415 and $123,246,648. The estimate submitted in December last for the fiscal year ending June 30, 1869, was $77,124,707; the expenditures for the first quarter, ending the 30th of September last, were $27,219,117, and the Secretary of the Treasury gives $66,000,000 as the amount which will probably be required during the remaining three quarters, if there should be no reduction of the Army--making its aggregate cost for the year considerably in excess of ninety-three millions. The difference between the estimates and expenditures for the three fiscal years which have been named is thus shown to be $175,545,343 for this single branch of the public service. The report of the Secretary of the Navy exhibits the operations of that Department and of the Navy during the year. A considerable reduction of the force has been effected. There are 42 vessels, carrying 411 guns, in the six squadrons which are established in different parts of the world. Three of these vessels are returning to the United States and 4 are used as storeships, leaving the actual cruising force 35 vessels, carrying 356 guns. The total number of vessels in the Navy is 206, mounting 1,743 guns. Eighty-one vessels of every description are in use, armed with 696 guns. The number of enlisted men in the service, including apprentices, has been reduced to 8,500. An 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 of the North Pacific Ocean is advised in view of our recent acquisitions, our expanding commerce, and the increasing intercourse between the Pacific States and Asia. The naval pension fund, which consists of a moiety of the avails of prizes captured during the war, amounts to $14,000,000. Exception is taken to the act of 23d July last, which reduces the interest on the fund loaned to the Government by the Secretary, as trustee, to 3 per cent instead of 6 per cent, which was originally stipulated when the investment was made. An amendment of the pension laws is suggested to remedy omissions and defects in existing enactments. The expenditures of the Department during the last fiscal year were $20,120,394, and the estimates for the coming year amount to $20,993,414. The Postmaster-General's report furnishes a full and clear exhibit of the operations and condition of the postal service. The ordinary postal revenue for the fiscal year ending June 30, 1868. was $16,292,600, and the total expenditures, embracing all the service for which special appropriations have been made by Congress, amounted to $22,730,592, showing an excess of expenditures of $6,437,991. Deducting from the expenditures the sum of $1,896,525, the amount of appropriations for ocean-steamship and other special service, the excess of expenditures was $4,541,466. By using an unexpended balance in the Treasury of $3,800,000 the actual sum for which a special appropriation is required to meet the deficiency is $741,466. The causes which produced this large excess of expenditure over revenue were the restoration of service in the late insurgent States and the putting into operation of new service established by acts of Congress, which amounted within the last two years and a half to about 48,700 miles--equal to more than one-third of the whole amount of the service at the close of the war. New postal conventions with Great Britain, North Germany, Belgium, the Netherlands, Switzerland, and Italy, respectively, have been carried into effect. Under their provisions important improvements have resulted in reduced rates of international postage and enlarged mail facilities with European countries. The cost of the United States transatlantic ocean mail service since January 1, 1868, has been largely lessened under the operation of these new conventions, a reduction of over one-half having been effected under the new arrangements for ocean mail steamship service which went into effect on that date. The attention of Congress is invited to the practical suggestions and recommendations made in his report by the Postmaster-General. No important question has occurred during the last year in our accustomed cordial and friendly intercourse with Costa Rica, Guatemala, Honduras, San Salvador, France, Austria, Belgium, Switzerland, Portugal, the Netherlands, Denmark, Sweden and Norway, Rome, Greece, Turkey, Persia, Egypt, Liberia, Morocco, Tripoli, Tunis, Muscat, Siam, Borneo, and Madagascar. Cordial relations have also been maintained with the Argentine and the Oriental Republics. The expressed wish of Congress that our national good offices might be tendered to those Republics, and also to Brazil and Paraguay, for bringing to an end the calamitous war which has so long been raging in the valley of the La Plata, has been assiduously complied with and kindly acknowledged by all the belligerents. That important negotiation, however, has thus far been without result. Charles A. Washburn, late United States minister to Paraguay, having resigned. and being desirous to return to the United States, the rear-admiral commanding the South Atlantic Squadron was early directed to send a ship of war to Asuncion, the capital of Paraguay, to receive Mr. Washburn and his family and remove them from a situation which was represented to be endangered by faction and foreign war. The Brazilian commander of the allied invading forces refused permission to the Wasp to pass through the blockading forces, and that vessel returned to its accustomed anchorage. Remonstrance having been made against this refusal, it was promptly overruled, and the Wasp therefore resumed her errand, received Mr. Washburn and his family, and conveyed them to a safe and convenient seaport. In the meantime an excited controversy had arisen between the President of Paraguay and the late United States minister, which, it is understood, grew out of his proceedings in giving asylum in the United States legation to alleged enemies of that Republic. The question of the right to give asylum is one always difficult and often productive of great embarrassment. In states well organized and established, foreign powers refuse either to concede or exercise that right, except as to persons actually belonging to the diplomatic service. On the other hand, all such powers insist upon exercising the right of asylum in states where the law of nations is not fully acknowledged, respected. and obeyed. The President of Paraguay is understood to have opposed to Mr. Washburn's proceedings the injurious and very improbable charge of personal complicity in insurrection and treason. The correspondence, however, has not yet reached the United States. Mr. Washburn, 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, committed to prison, and there subjected to torture for the purpose of procuring confessions of their own criminality and testimony to support the President' s allegation. against the United States minister. Mr. McMahon, the newly appointed minister to Paraguay, having reached the La Plata, has been instructed to proceed without delay to Asuncion, there to investigate the whole subject. The rear-admiral commanding the United States South Atlantic Squadron has been directed to attend the new minister with a proper naval force to sustain such just demands as the occasion may require, and to vindicate the rights of the United States citizens referred to and of any others who may be exposed to danger in the theater of war. With these exceptions, friendly relations have been maintained between the United States and Brazil and Paraguay. Our relations during the past year with Bolivia, Ecuador, Peru, and Chile have become especially friendly and cordial. Spain and the Republics of Peru, Bolivia, and Ecuador have expressed their willingness to accept the mediation of the United States for terminating the war upon the South Pacific coast. Chile has not finally declared upon the question. In the meantime the conflict has practically exhausted itself, since no belligerent or hostile movement has been made by either party during the last two years, and there are no indications of a present purpose to resume hostilities on either side. Great Britain and France have cordially seconded our proposition of mediation, and I do not forego the hope that it may soon be accepted by all the belligerents and lead to a secure establishment of peace and friendly relations between the Spanish American Republics of the Pacific and Spain--a result which would be attended with common benefits to the belligerents and much advantage to all commercial nations. I communicate, for the consideration of Congress, a correspondence which shows that the Bolivian Republic has established the extremely liberal principle of receiving into its citizenship any citizen of the United States, or of any other of the American Republics, upon the simple condition of voluntary registry. The correspondence herewith submitted will be found painfully replete with accounts of the ruin and wretchedness produced by recent earthquakes, of unparalleled severity, in the Republics of Peru, Ecuador, and Bolivia. The diplomatic agents and naval officers of the United States who were present in those countries at the time of those disasters furnished all the relief in their power to the sufferers, and were promptly rewarded with grateful and touching acknowledgments by the Congress of Peru. An appeal to the charity of our fellow-citizens has been answered by much liberality. In this connection I submit an appeal which has been made by the Swiss Republic, whose Government and institutions are kindred to our own, in behalf of its inhabitants, who are suffering extreme destitution, produced by recent devastating inundations. Our relations with Mexico during the year have been marked by an increasing growth of mutual confidence. The Mexican Government has not yet acted upon the three treaties celebrated here last summer for establishing the rights of naturalized citizens upon a liberal and just basis, for regulating consular powers, and for the adjustment of mutual claims. All commercial nations, as well as all friends of republican institutions, have occasion to regret the frequent local disturbances which occur in some of the constituent States of Colombia. Nothing has occurred, however, to affect the harmony and cordial friendship which have for several years existed between that youthful and vigorous Republic and our own. Negotiations are pending with a view to the survey and construction of a ship canal across the Isthmus of Darien, under the auspices of the United States. I hope to be able to submit the results of that negotiation to the Senate during its present session. The very liberal treaty which was entered into last year by the United States and Nicaragua has been ratified by the latter Republic. Costa Rica, with the earnestness of a sincerely friendly neighbor, solicits a reciprocity of trade, which I commend to the consideration of Congress. The convention created by treaty between the United States and Venezuela in July, 1865, for the 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 States of Venezuela has been subverted. A provisional government having been instituted under circumstances which promise durability, it has been formally recognized. I have been reluctantly obliged to ask explanation and satisfaction for national injuries committed by the President of Hayti. The political and social condition of the Republics of Hayti and St. Domingo is very unsatisfactory. and painful. The abolition of slavery, which has been carried into effect throughout the island of St. Domingo and the entire West Indies, except the Spanish islands of Cuba and Porto Rico, has been followed by a profound popular conviction of the rightfulness of republican institutions and an intense desire to secure them. The attempt, however, to establish republics there encounters many obstacles, most of which may be supposed to result from long-indulged habits of colonial supineness and dependence upon European monarchical powers. While the United States have on all occasions professed a decided unwillingness that any part of this continent or of its adjacent islands shall be made a theater for a new establishment of monarchical power, too little has been done by us, on the other hand, to attach the communities by which we are surrounded to our own country, or to lend even a moral support to the efforts they are so resolutely and so constantly making to secure republican institutions for themselves. It is indeed a question of grave consideration whether our recent and present example is not calculated to check the growth and expansion of free principles, and make those communities distrust, if not dread, a government which at will consigns to military domination States that are integral parts of our Federal Union, and, while ready to resist any attempts by other nations to extend to this hemisphere the monarchical institutions of Europe, assumes to establish over a large portion of its people a rule more absolute, harsh, and tyrannical than any known to civilized powers. The acquisition of Alaska was made with the view of extending national jurisdiction and republican principles in the American hemisphere. Believing that a further step could be taken in the same direction, I last year entered into a treaty with the King of Denmark for the purchase of the islands of St. Thomas and St. John, on the best terms then attainable, and with the express consent of the people of those islands. This treaty still remains under consideration in the Senate. A new convention has been entered into with Denmark, enlarging the time fixed for final ratification of the original treaty. Comprehensive national policy would seem to sanction the acquisition and incorporation into our Federal Union of the several adjacent continental and insular communities as speedily as it can be done peacefully, lawfully, and without any violation of national justice, faith, or honor. Foreign possession or control of those communities has hitherto hindered the growth and impaired the influence of the United States. Chronic revolution and anarchy there would be equally injurious. Each one of them, when firmly established as an independent republic, or when incorporated into the United States, would be a new source of strength and power. Conforming my Administration to these principles, I have or no occasion lent support or toleration to unlawful expeditions set on foot upon the plea of republican propagandism or of national extension or aggrandizement. The necessity, however, of repressing such unlawful movements clearly indicates the duty which rests upon us of adapting our legislative action to the new circumstances of a decline of European monarchical power and influence and the increase of American republican ideas, interests, and sympathies. It can not be long before it will become necessary for this Government to lend some effective aid to the solution of the political and social problems which are continually kept before the world by the two Republics of the island of St. Domingo, and which are now disclosing themselves more distinctly than heretofore in the island of Cuba. The subject is commended to your consideration with all the more earnestness because I am satisfied that the time has arrived when even so direct a proceeding as a proposition for an annexation of the two Republics of the island of St. Domingo would not only receive the consent of the people interested, but would also give satisfaction to all other foreign nations. I am aware that upon the question of further extending our possessions it is apprehended by some that our political system can not 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 intercommunication between all portions of the earth the principles of free government, as embraced in our Constitution, if faithfully maintained and carried out, would prove of sufficient strength and breadth to comprehend within their sphere and influence the civilized nations of the world. The attention of the Senate and of Congress is again respectfully invited to the treaty for the establishment of commercial reciprocity with the Hawaiian Kingdom entered into last year, and already ratified by that Government. The attitude of the United States toward these islands is not very different from that in which they stand toward the West Indies. It is known and felt by the Hawaiian Government and people that their Government and institutions are feeble and precarious; that the United States, being so near a neighbor, would be unwilling to see the islands pass under foreign control. Their prosperity is continually disturbed by expectations and alarms of unfriendly political proceedings, as well from the United States as from other foreign powers. A reciprocity treaty, while it could not materially diminish the revenues of the United States, would be a guaranty of the good will and forbearance of all nations until the people of the islands shall of themselves, at no distant day, voluntarily apply for admission into the Union. The Emperor of Russia has acceded to the treaty negotiated here in January last for the security of trade-marks in the interest of manufacturers and commerce. I have invited his attention to the importance of establishing, now while it seems easy and practicable, a fair and equal regulation of the vast fisheries belonging to the two nations in the waters of the North Pacific Ocean. The two treaties between the United States and Italy for the regulation of consular powers and the extradition of criminals, negotiated and ratified here during the last session of Congress, have been accepted and confirmed by the Italian Government. A liberal consular convention which has been negotiated with Belgium will be submitted to the Senate. The very important treaties which were negotiated between the United States and North Germany and Bavaria for the regulation of the rights of naturalized citizens have been duly ratified and exchanged, and similar treaties have been entered into with the Kingdoms of Belgium and Wurtemberg and with the Grand Duchies of Baden and Hesse-Darmstadt. I hope soon to be able to submit equally satisfactory conventions of the same character now in the course of negotiation with the respective Governments of Spain, Italy, and the Ottoman Empire. Examination of claims against the United States by the Hudsons Bay Company and the Puget Sound Agricultural Company, on account of certain possessory rights in the State of Oregon and Territory of Washington, alleged by those companies in virtue of provisions of the treaty between the United States and Great Britain of June 15, 1846, has been diligently prosecuted, under the direction of the joint international commission to which they were submitted for adjudication by treaty between the two Governments of July 1, 1863, and will, it is expected, be concluded at an early day. No practical regulation concerning colonial trade and the fisheries can be accomplished by treaty between the United States and Great Britain until Congress shall have expressed their judgment concerning the principles involved. Three other questions, however, between the United States and Great Britain remain open for adjustment. These are the mutual rights of naturalized citizens, the boundary question involving the title to the island of San Juan, on the Pacific coast, and mutual claims arising since the year 1853 of the citizens and subjects of the two countries for injuries and depredations committed under the authority of their respective Governments. Negotiations upon these subjects are pending, and I am not without hope of being able to lay before the Senate, for its consideration during the present session, protocols calculated to bring to an end these justly exciting and long-existing controversies. We are not advised of the action of the Chinese Government upon the liberal and auspicious treaty which was recently celebrated with its plenipotentiaries at this capital. Japan remains a theater of civil war, marked by religious incidents and political severities peculiar to that long-isolated Empire. The Executive has hitherto maintained strict neutrality among the belligerents, and acknowledges with pleasure that it has been frankly and fully sustained in that course by the enlightened concurrence and cooperation of the other treaty powers, namely Great Britain, France, the Netherlands, North Germany, and Italy. Spain having recently undergone a revolution marked by extraordinary unanimity and preservation of order, the provisional government established at Madrid has been recognized, and the friendly intercourse which has so long happily existed between the two countries remains unchanged. I renew the recommendation contained in my communication to Congress dated the 18th July last--a copy of which accompanies this message that the judgment of the people should be taken on the propriety of so amending the Federal Constitution that it shall provide-- First. For an election of President and Vice-President by a direct vote of the people, instead of through the agency of electors, and making them ineligible for reelection to a second term. Second. For a distinct designation of the person who shall discharge the duties of President in the event of a vacancy in that office by the death, resignation, or removal of both the President and Vice-President. Third. For the election of Senators of the United States directly by the people of the several States, instead of by the legislatures; and Fourth. For the limitation to a period of years of the terms of Federal judges. Profoundly impressed with the propriety of making these important modifications in the Constitution, I respectfully submit them for the early and mature consideration of Congress. We should, as far as possible, remove all pretext for violations 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 the whole people is sacredly obligatory upon all." In the performance of a duty imposed upon me by the Constitution, I have thus communicated to Congress information of the state of the Union and recommended for their consideration such measures as have seemed to me necessary and expedient. If carried into effect, they will hasten the accomplishment of the great and beneficent purposes for which the Constitution was ordained, and which it comprehensively states were "to form a more perfect Union, establish justice, insure domestic tranquillity, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity." In Congress are vested all legislative powers, and upon them devolves the responsibility as well for framing unwise and excessive laws as for neglecting to devise and adopt measures absolutely demanded by the wants of the country. Let us earnestly hope that before the expiration of our respective terms of service, now rapidly drawing to a close, an all-wise Providence will so guide our counsels as to strengthen and preserve the Federal Unions, inspire reverence for the Constitution, restore prosperity and happiness to our whole people, and promote "on earth peace, good will toward men."
upon the reassembling of congress it again becomes my duty to call your attention to the state of the union and to its continued disorganized condition under the various laws which have been passed upon the subject of reconstruction it may be safely assumed as an axiom in the government of 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 revocation of injurious and oppressive measures is the greatest good that can be conferred upon a nation the legislator or ruler who has the wisdom and magnanimity to retrace his steps when convinced of error will sooner or later be rewarded with the respect and gratitude of an intelligent and patriotic people our own history although embracing a period less than a century affords abundant proof that most if not all of our domestic troubles are directly traceable to violations of the organic law and excessive legislation the most striking illustrations of this fact are furnished by the enactments of the past three years upon the question of reconstruction after a fair trial they have substantially failed 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 military dependencies in each of which the people have been made subject to the arbitrary will of the commanding general although the constitution requires that each state shall be represented in congress virginia mississippi and texas are yet excluded from the two houses and contrary to the express provisions of that instrument were denied participation in the recent election for a president and of the united states the attempt to place the white population under the domination of persons of color in the south has impaired if not destroyed the kindly relations that had previously existed between them and mutual distrust has engendered a feeling of animosity which leading in some instances to collision and bloodshed has prevented that cooperation between the two races so essential to the success of industrial enterprise in the southern states nor have the inhabitants of those states alone suffered from the disturbed condition of affairs growing out of these congressional enactments the entire union has been agitated by grave apprehensions of troubles which might again involve the peace of the nation its interests have been injuriously affected by the derangement of business and labor and the consequent want of prosperity throughout that portion of the country the federal constitution the magna charta of american rights under whose wise and salutary provisions we have successfully conducted all our domestic and foreign affairs sustained ourselves in peace and in war and become a great nation among the powers of the earth must assuredly be now adequate to the settlement of questions growing out of the civil war waged alone for its vindication this great fact is made most manifest by the condition of the country when congress assembled in the month of december 1865 civil strife had ceased the spirit of rebellion had spent its entire force in the southern states the people had warmed into national life and throughout the whole country a healthy reaction in public sentiment had taken place by the application of the simple yet effective provisions of the constitution the executive department with the voluntary aid of the states had brought the work of restoration as near completion as was within the scope of its authority and the nation was encouraged by the prospect of an early and satisfactory adjustment of all its difficulties congress however intervened and refusing to perfect the work so nearly consummated declined to admit members from the unrepresented states adopted a series of measures which arrested the progress of restoration frustrated all that had been so successfully accomplished and after three years of agitation and strife has left the country further from the attainment of union and fraternal feeling than at the inception of the congressional plan of reconstruction it needs no argument to show that legislation which has produced such baneful consequences should be abrogated or else made to conform to the genuine principles of republican government under the influence of party passion and sectional prejudice other acts have been passed not warranted by the constitution congress has already been made familiar with my views respecting the bill experience has proved that its repeal is demanded by the best interests of the country and that while it remains in force the president can not enjoin that rigid accountability of public officers so essential 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 accordance with the original design of the federal constitution the act of march 2 1867 making appropriations for the support of the army for the year ending june 30 1868 and for other purposes contains provisions which interfere with the president constitutional functions as commander in chief of the army and deny to states of the union the right to protect themselves by means of their own militia these provisions should be at once annulled for while the first might in times of great emergency seriously embarrass the executive in efforts to employ and direct the common strength of the nation for its protection and preservation the other is contrary to the express declaration of the constitution that a militia being necessary to the security of a free state the right of the people to keep and bear arms shall not be infringed it is believed that the repeal of all such laws would be accepted by the american people as at least a partial return to the fundamental principles of the government and an indication that hereafter the constitution is to be made the nation safe and unerring guide they can be productive of no permanent benefit to the country and should not be permitted to stand as so many monuments of the deficient wisdom which has characterized our recent legislation the condition of our finances demands the early and earnest consideration of congress 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 people increasing each decade about 33 per cent it reached in 1860 an increase of 700 per cent on the population in 1790 in 1869 it is estimated that it will reach or an increase of 868 per cent in years the annual expenditures of the federal government in 1791 were in 1820 in 1850 millions in 1860 millions in 1865 nearly thirteen hundred millions and in 1869 it is estimated by the secretary of the treasury in his last annual report that they will be three hundred and millions by comparing the public disbursements of 1869 as estimated with those of 1791 it will be seen that the increase of expenditure since the beginning of the government has been per cent while the increase of the population for the same period was only 868 per cent again the expenses of the government in 1860 the year of peace immediately preceding the war were only sixty three millions while in 1869 the year of peace three years after the war it is estimated they will be three hundred and millions an increase of 489 per cent while the increase of population was only 21 per cent for the same period these statistics further show that in 1791 the annual national expenses compared with the population were little more than 1 per capita and in 1860 but 2 per capita while in 1869 they will reach the extravagant sum of per capita it will be observed that all these statements refer to and exhibit the disbursements of peace periods it may therefore be of interest to compare the expenditures of the three war periods the war with great britain the mexican war and the war of the rebellion in 1814 the annual expenses incident to the war of 1812 reached their highest amount about millions while our population slightly exceeded showing an expenditure of only per capita in 1847 the expenditures growing out of the war with mexico reached millions and the population about giving only per capita for the war expenses of that year in 1865 the expenditures called for by the rebellion reached the vast amount of twelve hundred and ninety millions which compared with a population of gives per capita from the 4th day of march 1789 to the 30th of june 1861 the entire expenditures of the government were during that period we were engaged in wars with great britain and mexico and were involved in hostilities with powerful indian tribes louisiana was purchased from france at a cost of florida was ceded to us by spain for five millions california was acquired from mexico for fifteen millions and the territory of new mexico was obtained from texas for the sum of ten millions early in 1861 the war of the rebellion commenced and from the 1st of july of that year to the 30th of june 1865 the public expenditures reached the enormous aggregate of hundred millions three years of peace have intervened and during that time the disbursements of the government have successively been five hundred and twenty millions three hundred and millions and three hundred and millions adding to these amounts three hundred and millions estimated as necessary for the fiscal year ending the 30th of june 1869 we obtain a total expenditure of during the four years immediately succeeding the war or nearly as much as was expended during the years that preceded the rebellion and embraced the extraordinary expenditures already named these startling facts clearly illustrate the necessity of retrenchment in all branches of the public service abuses which were tolerated during the war for the preservation of the nation will not be endured by the people now that profound peace prevails the receipts from internal revenues and customs have during the past three years gradually diminished and the continuance of useless and extravagant expenditures will involve us in national bankruptcy or else make inevitable an increase of taxes already too onerous and in many respects obnoxious on account of their inquisitorial character one hundred millions annually are expended for the military force a large portion of which is employed in the execution of laws both unnecessary and unconstitutional one hundred and fifty millions are required each year to pay the interest on the public debt an army of taxgatherers impoverishes the nation and public agents placed by congress beyond the control of the executive divert from their legitimate purposes large sums of money which they collect from the people in the name of the government judicious legislation and prudent economy can alone remedy defects and avert evils which if suffered to exist can not fail to diminish confidence in the public councils and weaken the attachment and respect of the people toward their political institutions without proper care the small balance which it is estimated will remain in the treasury at the close of the present fiscal year will not be realized and additional millions be added to a debt which is now enumerated by billions it is shown by the able and comprehensive report of the secretary of the treasury that the receipts for the fiscal year ending june 30 1868 were and that the expenditures for the same period were leaving in the treasury a surplus of it is estimated that the receipts during the present fiscal year ending june 30 1869 will be and the expenditures showing a small balance of in favor of the government for the fiscal year ending june 30 1870 it is estimated that the receipts will amount to and the expenditures to leaving an estimated surplus of it becomes proper in this connection to make a brief reference to our public indebtedness 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 created during the war of the revolution this amount had been reduced to when in 1812 war was declared against great britain the three years struggle that followed largely increased the national obligations and in 1816 they had attained the sum of wise and economical legislation however enabled the government to pay the entire amount within a period of twenty years and the extinguishment of the national debt filled the land with rejoicing and was one of the great events of president jackson administration after its redemption a large fund remained in the treasury which was deposited for with the several states on condition that it should be returned when required by the public wants in 1849 the year after the termination of an expensive war with mexico we found ourselves involved in a debt of and this was the amount owed by the government in 1860 just prior to the outbreak of the rebellion in the spring of 1861 our civil war commenced each year of its continuance made an enormous addition to the debt and when in the spring of 1865 the nation successfully emerged from the conflict the obligations of the government had reached the immense sum of the secretary of the treasury shows that on the 1st day of november 1867 this amount had been reduced to but at the same time his report exhibits an increase during the past year of for the debt on the 1st day of november last is stated to have been it is estimated by the secretary that the returns for the past month will add to our liabilities the further sum of making a total increase during thirteen months of in my message to congress december 4 1865 it was suggested that a policy should be devised which without being oppressive to the people would at once begin to effect a reduction of the debt and if persisted in discharge it fully within a definite number of years the secretary of the treasury forcibly recommends legislation of this character and justly urges that the longer it is deferred the more difficult must become its accomplishment we should follow the wise precedents 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 sustain moneyed monopolies in our own and other lands our foreign debt is already computed by the secretary of the treasury at citizens of foreign countries receive interest upon a large portion of our securities and american taxpayers are made to contribute large sums for their support the idea that such a debt is to become permanent should be at all times discarded as involving taxation too heavy to be borne and payment once in every sixteen years at the present rate of interest of an amount equal to the original sum this vast debt if permitted to become permanent and increasing must eventually be gathered into the hands of a few and enable them to exert a dangerous and controlling power in the affairs of the government the borrowers would become servants to the lenders the lenders the masters of the people we now pride ourselves upon having given freedom to of the colored race it will then be our shame that of people by their own toleration of usurpation and profligacy have suffered themselves to become enslaved and merely exchanged slave owners for new taskmasters in the shape of bondholders and taxgatherers besides permanent debts pertain to monarchical governments and tending to monopolies perpetuities and class legislation are totally irreconcilable with free institutions introduced into our republican system they would gradually but surely sap its foundations eventually subvert our governmental fabric and erect upon its ruins a moneyed aristocracy it is our sacred duty to transmit unimpaired to our posterity the blessings of liberty which were bequeathed to us by the founders of the republic and by our example teach those who are to follow us carefully to avoid the dangers which threaten a free and independent people various plans have been proposed for the payment of the public debt however they may have varied as to the time and mode in which it should be redeemed there seems to be a general concurrence as to the propriety and justness of a reduction in the present rate of interest the secretary of the treasury in his report recommends 5 per cent congress in a bill passed prior to adjournment on the 27th of july last agreed upon 4 and 4 per cent while by many 3 per cent has been held to be an amply sufficient return for the investment the general impression as to the exorbitancy of the existing rate of interest has led to an inquiry 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 obtained was in real money three or four hundred per cent less than the obligations which it issued in return it can not be denied that we are paying an extravagant percentage for the use of the money borrowed which was paper currency greatly depreciated below the value of coin this fact is made apparent when we consider that bondholders receive from the treasury upon each dollar they own in government securities 6 per cent in gold which is nearly or quite equal to 9 per cent in currency that the bonds are then converted into capital for the national banks upon which those institutions issue their circulation bearing 6 per cent interest and that they are exempt from taxation by the government and the states and thereby enhanced 2 per cent in the hands of the holders we thus have an aggregate of 17 per cent which may be received upon each dollar by the owners of government securities a system that produces such results is justly regarded as favoring a few at the expense of the many and has led to the further inquiry whether our bondholders in view of the large profits which they have enjoyed would themselves be averse to a settlement of our indebtedness upon a plan which would yield them a fair remuneration and at the same time be just to the taxpayers of the nation our national credit should be sacredly observed but in making provision for our creditors we should not forget what is due to the masses of the people it may be assumed that the holders of our securities have already received upon their bonds a larger amount than their original investment measured by a gold standard upon this statement of facts it would seem but just and equitable that the 6 per cent interest now paid by the government should be applied to the reduction of the principal in semiannual installments which in sixteen years and eight months would liquidate the entire national debt six per cent in gold would at present rates be equal to 9 per cent in currency and equivalent to the payment of the debt one and a half times in a fraction less than seventeen years this in connection with all the other advantages derived from their investment would afford to the public creditors a fair and liberal compensation for the use of their capital and with this they should be satisfied the lessons of the past admonish the lender that it is not well to be in exacting from the borrower rigid compliance with the letter of the bond if provision be made for the payment of the indebtedness of the government in the manner suggested our nation will rapidly recover its wonted prosperity its interests require that some measure should be taken to release the large amount of capital invested in the securities of the government it is not now merely unproductive but in taxation annually consumes which would otherwise be used by our enterprising people in adding to the wealth of the nation our commerce which at one time successfully rivaled that of the great maritime powers has rapidly diminished and our industrial interests are in a depressed and languishing condition the development of our inexhaustible resources is checked and the fertile fields of the south are becoming waste for want of means to till them with the release of capital new life would be infused into the paralyzed energies of our people and activity and vigor imparted to every branch of industry our people need encouragement in their efforts to recover from the effects of the rebellion and of injudicious legislation and it should be the aim of the government to stimulate them by the prospect of an early release from the burdens which impede their prosperity if we can not take the burdens from their shoulders we should at least manifest a willingness to help to bear them in referring to the condition of the circulating medium i shall merely reiterate substantially that portion of my last annual message which relates to that subject the proportion which the currency of any country should bear to the whole value of the annual produce circulated by its means is a question upon which political economists have not agreed nor can it be controlled by legislation but must be left to the irrevocable laws which everywhere regulate commerce and trade the circulating medium will ever irresistibly flow to those points where it is in greatest demand the law of demand and supply is as unerring as that which regulates the tides of the ocean and indeed currency like the tides has its ebbs and flows throughout the commercial world at the beginning of the rebellion the circulation of the country amounted to not much more than now the circulation of notes and those known as 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 issues when compared with a metallic or convertible currency for this purpose let us inquire how much gold and silver could be purchased by the seven hundred millions of paper money now in circulation probably not more than half the amount of the latter showing that when our paper currency is compared with gold and silver its commercial value is compressed into three hundred and fifty millions this striking fact makes it the obvious duty of the government as early as may be consistent with the principles of sound political economy to take such measures as will enable the holders of its notes and those of the national banks to convert them without loss into specie or its equivalent a reduction of our paper circulating medium need not necessarily follow this however would depend upon the law of demand and supply though it should be borne in mind that by making and bank notes convertible into coin or its equivalent their present specie value in the hands of their holders would be enhanced 100 per cent legislation for the accomplishment of a result so desirable is demanded by the highest public considerations the constitution contemplates that the circulating medium of the country shall be uniform in quality and value at the time of the formation of that instrument the country had just emerged from the war of the revolution and was suffering from the effects of a redundant and worthless paper currency the sages of that period were anxious to protect their posterity from the evils which they themselves had experienced hence in providing a circulating medium they conferred upon congress the power to coin money and regulate the value thereof at the same time prohibiting the states from making anything but gold and silver a tender in payment of debts the anomalous condition of our currency is in striking contrast with that which was originally designed our circulation now embraces first notes of the national banks which are made receivable for all dues to the government excluding imposts and by all its creditors excepting in payment of interest upon its bonds and the securities themselves second legal tender issued by the united states and which the law requires shall be received as well in payment of all debts between citizens as of all government dues excepting imposts and third gold and silver coin by the operation of our present system of finance however the metallic currency when collected is reserved only for one class of government creditors who holding its bonds semiannually receive their interest in coin from the national treasury there is no reason which will be accepted as satisfactory by the people why those who defend us on the land and protect us on the sea the pensioner upon the gratitude of the nation bearing the scars and wounds received while in its service the public servants in the various departments of the government the farmer who supplies the soldiers of the army and the sailors of the navy the artisan who toils in the nation workshops or the mechanics and laborers who build its edifices and construct its forts and vessels of war should in payment of their just and dues receive depreciated paper while another class of their countrymen no more deserving are paid in coin of gold and silver equal and exact justice requires that all the creditors of the government should be paid in a currency possessing a uniform value this can only be accomplished by the restoration of the currency to the standard established by the constitution and by this means we would remove a discrimination which may if it has not already done so create a prejudice that may become and widespread and imperil the national credit the feasibility of making our currency correspond with the constitutional standard may be seen by reference to a few facts derived from our commercial statistics the aggregate product of precious metals in the united states from 1849 to 1867 amounted to while for the same period the net exports of specie were this shows an excess of product over net exports of there are in the treasury in coin in circulation in the states on the pacific coast about and a few millions in the national and other banks in all less than taking into consideration the specie in the country prior to 1849 and that produced since 1867 and we have more than not accounted for by exportation or by returns of the treasury and therefore most probably remaining in the country these are important facts and show how completely the inferior currency will supersede the better forcing it from circulation among the masses and causing it to be exported as a mere article of trade to add to the money capital of foreign lands they show the necessity of retiring our paper money that the return of gold and silver to the avenues of trade may be invited and a demand created which will because the retention at home of at least so much of the productions of our rich and inexhaustible fields as may be sufficient for purposes of circulation it is unreasonable to expect a return to a sound currency so long as the government and banks by continuing to issue irredeemable notes fill the channels of circulation with depreciated paper notwithstanding a coinage by our mints since 1849 of the people are now strangers to the currency which was designed for their use and benefit and specimens of the precious metals bearing the national device are seldom seen except when produced to gratify the interest excited by their novelty if depreciated paper is to be continued as the permanent currency of the country and all our coin is to become a mere article of traffic and speculation to the enhancement in price of all that is indispensable to the comfort of the people it would be wise economy to abolish our mints thus saving the nation the care and expense incident to such establishments and let our precious metals be exported in bullion the time has come however when the government and national banks should be required to take the most efficient steps and make all necessary arrangements for a resumption of specie payments let specie payments once be earnestly inaugurated by the government and banks and the value of the paper circulation would directly approximate a specie standard specie payments having been resumed by the government and banks all notes or bills of paper issued by either of a less denomination than 20 should by law be excluded from circulation so that the people may have the benefit and convenience of a gold and silver currency which in all their business transactions will be uniform in value at home and abroad every man of property or industry every man who desires to preserve what he honestly possesses or to obtain what he can honestly earn has a direct interest in maintaining a safe circulating medium such a medium as shall be real and substantial not liable to vibrate with opinions not subject to be blown up or blown down by the breath of speculation but to be made stable and secure a disordered currency is one of the greatest political evils it undermines the virtues necessary for the support of the social system and encourages propensities destructive of its happiness it wars against industry frugality and economy and it fosters the evil spirits of extravagance and speculation it has been asserted by one of our profound and most gifted statesmen that of all the contrivances for cheating the laboring classes of mankind none has been more effectual than that which deludes them with paper money this is the most effectual of inventions to fertilize the rich man fields by the sweat of the poor man brow ordinary tyranny oppression excessive taxation these bear lightly on the happiness of the mass of the community compared with a fraudulent currency and the robberies committed by depreciated paper our own history has recorded for our instruction enough and more than enough of the demoralizing tendency the injustice and the intolerable oppression on the virtuous and of a degraded paper currency authorized by law or in any way countenanced by government it is one of the most successful devices in times of peace or war of expansions or revulsions to accomplish the transfer of all the precious metals from the great mass of the people into the hands of the few where they are hoarded in secret places or deposited under bolts and bars while the people are left to endure all the inconvenience sacrifice and demoralization resulting from the use of depreciated and worthless paper the secretary of the interior in his report gives valuable information in reference to the interests confided to the supervision of his department and reviews the operations of the land office pension office patent office and indian bureau during the fiscal year ending june 30 1868 acres of public land were disposed of the entire cash receipts of the general land office for the same period were being greater by than the amount realized from the same sources during the previous year the entries under the homestead law cover acres nearly of which was taken under the act of june 21 1866 which applies only to the states of alabama mississippi louisiana arkansas and florida on the 30th of june 1868 names were borne on the pension rolls and during the year ending on that day the total amount paid for pensions including the expenses of disbursement was being greater than that expended for like purposes during the preceding year during the year ending the 30th of september last the expenses of the patent office exceeded the receipts by 171 and including reissues and designs patents 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 where they may be encouraged to abandon their nomadic habits and engage in agricultural and industrial pursuits this policy inaugurated many years since has met with signal success whenever it has been pursued in good faith and with becoming liberality by the united states the necessity for extending it as far as practicable in our relations with the aboriginal population is greater now than at any preceding period whilst we furnish subsistence and instruction to the indians and guarantee the undisturbed enjoyment of their treaty rights we should habitually insist upon the faithful observance of their agreement to remain within their respective reservations this is the only mode by which collisions with other tribes and with the whites can be avoided and the safety of our frontier settlements secured the companies constructing the railway from omaha to sacramento have been most energetically engaged in prosecuting the work and it is believed that the line will be completed before the expiration of the next fiscal year the 6 per cent bonds issued to these companies amounted on the 5th instant to and additional work had been performed to the extent of the secretary of the interior in august last invited my attention to the report of a government director of the union pacific railroad company who had been specially instructed to examine the location construction and equipment of their road i submitted for the opinion of the certain questions in regard to the authority of the executive which arose upon this report and those which had from time to time been presented by the commissioners appointed to inspect each successive section of the work after carefully considering the law of the case he affirmed the right of the executive to order if necessary a thorough revision of the entire road commissioners were thereupon appointed to examine this and other lines and have recently submitted a statement of their investigations of which the report of the secretary of the interior furnishes specific information the report of the secretary of war contains information of interest and importance respecting the several bureaus of the war department and the operations of the army the strength of our military force on the 30th of september last was men and it is computed that by the 1st of january next this number will be decreased to it is the opinion of the secretary of war that within the next year a considerable diminution of the infantry force may be made without detriment to the interests of the country and in view of the great expense attending the military peace establishment and the absolute necessity of retrenchment wherever it can be applied it is hoped that congress will sanction the reduction which his report recommends while in 1860 sixteen thousand three hundred men cost the nation the sum of is estimated as necessary for the support of the army during the fiscal year ending june 30 1870 the estimates of the war department for the last two fiscal years were for 1867 and for 1868 the actual expenditures during the same periods were respectively and the estimate submitted in december last for the fiscal year ending june 30 1869 was the expenditures for the first quarter ending the 30th of september last were and the secretary of the treasury gives as the amount which will probably be required during the remaining three quarters if there should be no reduction of the army making its aggregate cost for the year considerably in excess of millions the difference between the estimates and expenditures for the three fiscal years which have been named is thus shown to be for this single branch of the public service the report of the secretary of the navy exhibits the operations of that department and of the navy during the year a considerable reduction of the force has been effected there are 42 vessels carrying 411 guns in the six squadrons which are established in different parts of the world three of these vessels are returning to the united states and 4 are used as storeships leaving the actual cruising force 35 vessels carrying 356 guns the total number of vessels in the navy is 206 mounting guns vessels of every description are in use armed with 696 guns the number of enlisted men in the service including apprentices has been reduced to an increase of 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 of the north pacific ocean is advised in view of our recent acquisitions our expanding commerce and the increasing intercourse between the pacific states and asia the naval pension fund which consists of a moiety of the avails of prizes captured during the war amounts to exception is taken to the act of 23d july last which reduces the interest on the fund loaned to the government by the secretary as trustee to 3 per cent instead of 6 per cent which was originally stipulated when the investment was made an amendment of the pension laws is suggested to remedy omissions and defects in existing enactments the expenditures of the department during the last fiscal year were and the estimates for the coming year amount to the report furnishes a full and clear exhibit of the operations and condition of the postal service the ordinary postal revenue for the fiscal year ending june 30 was and the total expenditures embracing all the service for which special appropriations have been made by congress amounted to showing an excess of expenditures of deducting from the expenditures the sum of the amount of appropriations for and other special service the excess of expenditures was by using an unexpended balance in the treasury of the actual sum for which a special appropriation is required to meet the deficiency is the causes which produced this large excess of expenditure over revenue were the restoration of service in the late insurgent states and the putting into operation of new service established by acts of congress which amounted within the last two years and a half to about miles equal to more than of the whole amount of the service at the close of the war new postal conventions with great britain north germany belgium the netherlands switzerland and italy respectively have been carried into effect under their provisions important improvements have resulted in reduced rates of international postage and enlarged mail facilities with european countries the cost of the united states transatlantic ocean mail service since january 1 1868 has been largely lessened under the operation of these new conventions a reduction of over having been effected under the new arrangements for ocean mail steamship service which went into effect on that date the attention of congress is invited to the practical suggestions and recommendations made in his report by the no important question has occurred during the last year in our accustomed cordial and friendly intercourse with costa rica guatemala honduras san salvador france austria belgium switzerland portugal the netherlands denmark sweden and norway rome greece turkey persia egypt liberia morocco tripoli tunis muscat siam borneo and madagascar cordial relations have also been maintained with the argentine and the oriental republics the expressed wish of congress that our national good offices might be tendered to those republics and also to brazil and paraguay for bringing to an end the calamitous war which has so long been raging in the valley of the la plata has been assiduously complied with and kindly acknowledged by all the belligerents that important negotiation however has thus far been without result charles washburn late united states minister to paraguay having resigned and being desirous to return to the united states the commanding the south atlantic squadron was early directed to send a ship of war to asuncion the capital of paraguay to receive washburn and his family and remove them from a situation which was represented to be endangered by faction and foreign war the brazilian commander of the allied invading forces refused permission to the wasp to pass through the blockading forces and that vessel returned to its accustomed anchorage remonstrance having been made against this refusal it was promptly overruled and the wasp therefore resumed her errand received washburn and his family and conveyed them to a safe and convenient seaport in the meantime an excited controversy had arisen between the president of paraguay and the late united states minister which it is understood grew out of his proceedings in giving asylum in the united states legation to alleged enemies of that republic the question of the right to give asylum is one always difficult and often productive of great embarrassment in states well organized and established foreign powers refuse either to concede or exercise that right except as to persons actually belonging to the diplomatic service on the other hand all such powers insist upon exercising the right of asylum in states where the law of nations is not fully acknowledged respected and obeyed the president of paraguay is understood to have opposed to washburn proceedings the injurious and very improbable charge of personal complicity in insurrection and treason the correspondence however has not yet reached the united states washburn 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 committed to prison and there subjected to torture for the purpose of procuring confessions of their own criminality and testimony to support the president s allegation against the united states minister mcmahon the newly appointed minister to paraguay having reached the la plata has been instructed to proceed without delay to asuncion there to investigate the whole subject the commanding the united states south atlantic squadron has been directed to attend the new minister with a proper naval force to sustain such just demands as the occasion may require and to vindicate the rights of the united states citizens referred to and of any others who may be exposed to danger in the theater of war with these exceptions friendly relations have been maintained between the united states and brazil and paraguay our relations during the past year with bolivia ecuador peru and chile have become especially friendly and cordial spain and the republics of peru bolivia and ecuador have expressed their willingness to accept the mediation of the united states for terminating the war upon the south pacific coast chile has not finally declared upon the question in the meantime the conflict has practically exhausted itself since no belligerent or hostile movement has been made by either party during the last two years and there are no indications of a present purpose to resume hostilities on either side great britain and france have cordially seconded our proposition of mediation and i do not forego the hope that it may soon be accepted by all the belligerents and lead to a secure establishment of peace and friendly relations between the spanish american republics of the pacific and spain a result which would be attended with common benefits to the belligerents and much advantage to all commercial nations i communicate for the consideration of congress a correspondence which shows that the bolivian republic has established the extremely liberal principle of receiving into its citizenship any citizen of the united states or of any other of the american republics upon the simple condition of voluntary registry the correspondence herewith submitted will be found painfully replete with accounts of the ruin and wretchedness produced by recent earthquakes of unparalleled severity in the republics of peru ecuador and bolivia the diplomatic agents and naval officers of the united states who were present in those countries at the time of those disasters furnished all the relief in their power to the sufferers and were promptly rewarded with grateful and touching acknowledgments by the congress of peru an appeal to the charity of our has been answered by much liberality in this connection i submit an appeal which has been made by the swiss republic whose government and institutions are kindred to our own in behalf of its inhabitants who are suffering extreme destitution produced by recent devastating inundations our relations with mexico during the year have been marked by an increasing growth of mutual confidence the mexican government has not yet acted upon the three treaties celebrated here last summer for establishing the rights of naturalized citizens upon a liberal and just basis for regulating consular powers and for the adjustment of mutual claims all commercial nations as well as all friends of republican institutions have occasion to regret the frequent local disturbances which occur in some of the constituent states of colombia nothing has occurred however to affect the harmony and cordial friendship which have for several years existed between that youthful and vigorous republic and our own negotiations are pending with a view to the survey and construction of a ship canal across the isthmus of darien under the auspices of the united states i hope to be able to submit the results of that negotiation to the senate during its present session the very liberal treaty which was entered into last year by the united states and nicaragua has been ratified by the latter republic costa rica with the earnestness of a sincerely friendly neighbor solicits a reciprocity of trade which i commend to the consideration of congress the convention created by treaty between the united states and venezuela in july 1865 for the mutual adjustment of claims has been held and its decisions have been received at the department of state the government of the united states of venezuela has been subverted a provisional government having been instituted under circumstances which promise durability it has been formally recognized i have been reluctantly obliged to ask explanation and satisfaction for national injuries committed by the president of hayti the political and social condition of the republics of hayti and domingo is very unsatisfactory and painful the abolition of slavery which has been carried into effect throughout the island of domingo and the entire west indies except the spanish islands of cuba and porto rico has been followed by a profound popular conviction of the rightfulness of republican institutions and an intense desire to secure them the attempt however to establish republics there encounters many obstacles most of which may be supposed to result from habits of colonial supineness and dependence upon european monarchical powers while the united states have on all occasions professed a decided unwillingness that any part of this continent or of its adjacent islands shall be made a theater for a new establishment of monarchical power too little has been done by us on the other hand to attach the communities by which we are surrounded to our own country or to lend even a moral support to the efforts they are so resolutely and so constantly making to secure republican institutions for themselves it is indeed a question of grave consideration whether our recent and present example is not calculated to check the growth and expansion of free principles and make those communities distrust if not dread a government which at will consigns to military domination states that are integral parts of our federal union and while ready to resist any attempts by other nations to extend to this hemisphere the monarchical institutions of europe assumes to establish over a large portion of its people a rule more absolute harsh and tyrannical than any known to civilized powers the acquisition of alaska was made with the view of extending national jurisdiction and republican principles in the american hemisphere believing that a further step could be taken in the same direction i last year entered into a treaty with the king of denmark for the purchase of the islands of thomas and 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 the senate a new convention has been entered into with denmark enlarging the time fixed for final ratification of the original treaty comprehensive national policy would seem to sanction the acquisition and incorporation into our federal union of the several adjacent continental and insular communities as speedily as it can be done peacefully lawfully and without any violation of national justice faith or honor foreign possession or control of those communities has hitherto hindered the growth and impaired the influence of the united states chronic revolution and anarchy there would be equally injurious each one of them when firmly established as an independent republic or when incorporated into the united states would be a new source of strength and power conforming my administration to these principles i have or no occasion lent support or toleration to unlawful expeditions set on foot upon the plea of republican propagandism or of national extension or aggrandizement the necessity however of repressing such unlawful movements clearly indicates the duty which rests upon us of adapting our legislative action to the new circumstances of a decline of european monarchical power and influence and the increase of american republican ideas interests and sympathies it can not be long before it will become necessary for this government to lend some effective aid to the solution of the political and social problems which are continually kept before the world by the two republics of the island of domingo and which are now disclosing themselves more distinctly than heretofore in the island of cuba the subject is commended to your consideration with all the more earnestness because i am satisfied that the time has arrived when even so direct a proceeding as a proposition for an annexation of the two republics of the island of domingo would not only receive the consent of the people interested but would also give satisfaction to all other foreign nations i am aware that upon the question of further extending our possessions it is apprehended by some that our political system can not 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 intercommunication between all portions of the earth the principles of free government as embraced in our constitution if faithfully maintained and carried out would prove of sufficient strength and breadth to comprehend within their sphere and influence the civilized nations of the world the attention of the senate and of congress is again respectfully invited to the treaty for the establishment of commercial reciprocity with the hawaiian kingdom entered into last year and already ratified by that government the attitude of the united states toward these islands is not very different from that in which they stand toward the west indies it is known and felt by the hawaiian government and people that their government and institutions are feeble and precarious that the united states being so near a neighbor would be unwilling to see the islands pass under foreign control their prosperity is continually disturbed by expectations and alarms of unfriendly political proceedings as well from the united states as from other foreign powers a reciprocity treaty while it could not materially diminish the revenues of the united states would be a guaranty of the good will and forbearance of all nations until the people of the islands shall of themselves at no distant day voluntarily apply for admission into the union the emperor of russia has acceded to the treaty negotiated here in january last for the security of in the interest of manufacturers and commerce i have invited his attention to the importance of establishing now while it seems easy and practicable a fair and equal regulation of the vast fisheries belonging to the two nations in the waters of the north pacific ocean the two treaties between the united states and italy for the regulation of consular powers and the extradition of criminals negotiated and ratified here during the last session of congress have been accepted and confirmed by the italian government a liberal consular convention which has been negotiated with belgium will be submitted to the senate the very important treaties which were negotiated between the united states and north germany and bavaria for the regulation of the rights of naturalized citizens have been duly ratified and exchanged and similar treaties have been entered into with the kingdoms of belgium and wurtemberg and with the grand duchies of baden and i hope soon to be able to submit equally satisfactory conventions of the same character now in the course of negotiation with the respective governments of spain italy and the ottoman empire examination of claims against the united states by the hudsons bay company and the puget sound agricultural company on account of certain possessory rights in the state of oregon and territory of washington alleged by those companies in virtue of provisions of the treaty between the united states and great britain of june 15 1846 has been diligently prosecuted under the direction of the joint international commission to which they were submitted for adjudication by treaty between the two governments of july 1 1863 and will it is expected be concluded at an early day no practical regulation concerning colonial trade and the fisheries can be accomplished by treaty between the united states and great britain until congress shall have expressed their judgment concerning the principles involved three other questions however between the united states and great britain remain open for adjustment these are the mutual rights of naturalized citizens the boundary question involving the title to the island of san juan on the pacific coast and mutual claims arising since the year 1853 of the citizens and subjects of the two countries for injuries and depredations committed under the authority of their respective governments negotiations upon these subjects are pending and i am not without hope of being able to lay before the senate for its consideration during the present session protocols calculated to bring to an end these justly exciting and controversies we are not advised of the action of the chinese government upon the liberal and auspicious treaty which was recently celebrated with its plenipotentiaries at this capital japan remains a theater of civil war marked by religious incidents and political severities peculiar to that empire the executive has hitherto maintained strict neutrality among the belligerents and acknowledges with pleasure that it has been frankly and fully sustained in that course by the enlightened concurrence and cooperation of the other treaty powers namely great britain france the netherlands north germany and italy spain having recently undergone a revolution marked by extraordinary unanimity and preservation of order the provisional government established at madrid has been recognized and the friendly intercourse which has so long happily existed between the two countries remains unchanged i renew the recommendation contained in my communication to congress dated the 18th july last a copy of which accompanies this message that the judgment of the people should be taken on the propriety of so amending the federal constitution that it shall provide first for an election of president and by a direct vote of the people instead of through the agency of electors and making them ineligible for reelection to a second term second for a distinct designation of the person who shall discharge the duties of president in the event of a vacancy in that office by the death resignation or removal of both the president and third for the election of senators of the united states directly by the people of the several states instead of by the legislatures and fourth for the limitation to a period of years of the terms of federal judges profoundly impressed with the propriety of making these important modifications in the constitution i respectfully submit them for the early and mature consideration of congress we should as far as possible remove all pretext for violations 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 the whole people is sacredly obligatory upon all in the performance of a duty imposed upon me by the constitution i have thus communicated to congress information of the state of the union and recommended for their consideration such measures as have seemed to me necessary and expedient if carried into effect they will hasten the accomplishment of the great and beneficent purposes for which the constitution was ordained and which it comprehensively states were to form a more perfect union establish justice insure domestic tranquillity provide for the common defense promote the general welfare and secure the blessings of liberty to ourselves and our posterity in congress are vested all legislative powers and upon them devolves the responsibility as well for framing unwise and excessive laws as for neglecting to devise and adopt measures absolutely demanded by the wants of the country let us earnestly hope that before the expiration of our respective terms of service now rapidly drawing to a close an providence will so guide our counsels as to strengthen and preserve the federal unions inspire reverence for the constitution restore prosperity and happiness to our whole people and promote on earth peace good will toward men
upon reassembling congress becomes duty call attention state union continued disorganized condition various laws passed upon subject reconstruction may safely assumed axiom government states greatest wrongs inflicted upon people caused unjust arbitrary legislation unrelenting decrees despotic rulers timely revocation injurious oppressive measures greatest good conferred upon nation legislator ruler wisdom magnanimity retrace steps convinced error sooner later rewarded respect gratitude intelligent patriotic people history although embracing period less century affords abundant proof domestic troubles directly traceable violations organic law excessive legislation striking illustrations fact furnished enactments past three years upon question reconstruction fair trial substantially failed proved pernicious results seems good reason longer remain upon statute book states constitution guarantees republican form government reduced military dependencies people made subject arbitrary commanding general although constitution requires state shall represented congress virginia mississippi texas yet excluded two houses contrary express provisions instrument denied participation recent election president united states attempt place white population domination persons color south impaired destroyed kindly relations previously existed mutual distrust engendered feeling animosity leading instances collision bloodshed prevented cooperation two races essential success industrial enterprise southern states inhabitants states alone suffered disturbed condition affairs growing congressional enactments entire union agitated grave apprehensions troubles might involve peace nation interests injuriously affected derangement business labor consequent want prosperity throughout portion country federal constitution magna charta american rights whose wise salutary provisions successfully conducted domestic foreign affairs sustained peace war become great nation among powers earth must assuredly adequate settlement questions growing civil war waged alone vindication great fact made manifest condition country congress assembled month december 1865 civil strife ceased spirit rebellion spent entire force southern states people warmed national life throughout whole country healthy reaction public sentiment taken place application simple yet effective provisions constitution executive department voluntary aid states brought work restoration near completion within scope authority nation encouraged prospect early satisfactory adjustment difficulties congress however intervened refusing perfect work nearly consummated declined admit members unrepresented states adopted series measures arrested progress restoration frustrated successfully accomplished three years agitation strife left country attainment union fraternal feeling inception congressional plan reconstruction needs argument show legislation produced baneful consequences abrogated else made conform genuine principles republican government influence party passion sectional prejudice acts passed warranted constitution congress already made familiar views respecting bill experience proved repeal demanded best interests country remains force president enjoin rigid accountability public officers essential honest efficient execution laws revocation would enable executive department exercise power appointment removal accordance original design federal constitution act march 2 1867 making appropriations support army year ending june 30 1868 purposes contains provisions interfere president constitutional functions commander chief army deny states union right protect means militia provisions annulled first might times great emergency seriously embarrass executive efforts employ direct common strength nation protection preservation contrary express declaration constitution militia necessary security free state right people keep bear arms shall infringed believed repeal laws would accepted american people least partial return fundamental principles government indication hereafter constitution made nation safe unerring guide productive permanent benefit country permitted stand many monuments deficient wisdom characterized recent legislation condition finances demands early earnest consideration congress compared growth population public expenditures reached amount unprecedented history population united states 1790 nearly people increasing decade 33 per cent reached 1860 increase 700 per cent population 1790 1869 estimated reach increase 868 per cent years annual expenditures federal government 1791 1820 1850 millions 1860 millions 1865 nearly thirteen hundred millions 1869 estimated secretary treasury last annual report three hundred millions comparing public disbursements 1869 estimated 1791 seen increase expenditure since beginning government per cent increase population period 868 per cent expenses government 1860 year peace immediately preceding war sixty three millions 1869 year peace three years war estimated three hundred millions increase 489 per cent increase population 21 per cent period statistics show 1791 annual national expenses compared population little 1 per capita 1860 2 per capita 1869 reach extravagant sum per capita observed statements refer exhibit disbursements peace periods may therefore interest compare expenditures three war periods war great britain mexican war war rebellion 1814 annual expenses incident war 1812 reached highest amount millions population slightly exceeded showing expenditure per capita 1847 expenditures growing war mexico reached millions population giving per capita war expenses year 1865 expenditures called rebellion reached vast amount twelve hundred ninety millions compared population gives per capita 4th day march 1789 30th june 1861 entire expenditures government period engaged wars great britain mexico involved hostilities powerful indian tribes louisiana purchased france cost florida ceded us spain five millions california acquired mexico fifteen millions territory new mexico obtained texas sum ten millions early 1861 war rebellion commenced 1st july year 30th june 1865 public expenditures reached enormous aggregate hundred millions three years peace intervened time disbursements government successively five hundred twenty millions three hundred millions three hundred millions adding amounts three hundred millions estimated necessary fiscal year ending 30th june 1869 obtain total expenditure four years immediately succeeding war nearly much expended years preceded rebellion embraced extraordinary expenditures already named startling facts clearly illustrate necessity retrenchment branches public service abuses tolerated war preservation nation endured people profound peace prevails receipts internal revenues customs past three years gradually diminished continuance useless extravagant expenditures involve us national bankruptcy else make inevitable increase taxes already onerous many respects obnoxious account inquisitorial character one hundred millions annually expended military force large portion employed execution laws unnecessary unconstitutional one hundred fifty millions required year pay interest public debt army taxgatherers impoverishes nation public agents placed congress beyond control executive divert legitimate purposes large sums money collect people name government judicious legislation prudent economy alone remedy defects avert evils suffered exist fail diminish confidence public councils weaken attachment respect people toward political institutions without proper care small balance estimated remain treasury close present fiscal year realized additional millions added debt enumerated billions shown able comprehensive report secretary treasury receipts fiscal year ending june 30 1868 expenditures period leaving treasury surplus estimated receipts present fiscal year ending june 30 1869 expenditures showing small balance favor government fiscal year ending june 30 1870 estimated receipts amount expenditures leaving estimated surplus becomes proper connection make brief reference public indebtedness accumulated alarming rapidity assumed colossal proportions 1789 government commenced operations federal constitution burdened indebtedness created war revolution amount reduced 1812 war declared great britain three years struggle followed largely increased national obligations 1816 attained sum wise economical legislation however enabled government pay entire amount within period twenty years extinguishment national debt filled land rejoicing one great events president jackson administration redemption large fund remained treasury deposited several states condition returned required public wants 1849 year termination expensive war mexico found involved debt amount owed government 1860 prior outbreak rebellion spring 1861 civil war commenced year continuance made enormous addition debt spring 1865 nation successfully emerged conflict obligations government reached immense sum secretary treasury shows 1st day november 1867 amount reduced time report exhibits increase past year debt 1st day november last stated estimated secretary returns past month add liabilities sum making total increase thirteen months message congress december 4 1865 suggested policy devised without oppressive people would begin effect reduction debt persisted discharge fully within definite number years secretary treasury forcibly recommends legislation character justly urges longer deferred difficult must become accomplishment follow wise precedents established 1789 1816 without delay make provision payment obligations early period may practicable fruits labors enjoyed citizens rather used build sustain moneyed monopolies lands foreign debt already computed secretary treasury citizens foreign countries receive interest upon large portion securities american taxpayers made contribute large sums support idea debt become permanent times discarded involving taxation heavy borne payment every sixteen years present rate interest amount equal original sum vast debt permitted become permanent increasing must eventually gathered hands enable exert dangerous controlling power affairs government borrowers would become servants lenders lenders masters people pride upon given freedom colored race shame people toleration usurpation profligacy suffered become enslaved merely exchanged slave owners new taskmasters shape bondholders taxgatherers besides permanent debts pertain monarchical governments tending monopolies perpetuities class legislation totally irreconcilable free institutions introduced republican system would gradually surely sap foundations eventually subvert governmental fabric erect upon ruins moneyed aristocracy sacred duty transmit unimpaired posterity blessings liberty bequeathed us founders republic example teach follow us carefully avoid dangers threaten free independent people various plans proposed payment public debt however may varied time mode redeemed seems general concurrence propriety justness reduction present rate interest secretary treasury report recommends 5 per cent congress bill passed prior adjournment 27th july last agreed upon 4 4 per cent many 3 per cent held amply sufficient return investment general impression exorbitancy existing rate interest led inquiry public mind respecting consideration government actually received bonds conclusion becoming prevalent amount obtained real money three four hundred per cent less obligations issued return denied paying extravagant percentage use money borrowed paper currency greatly depreciated value coin fact made apparent consider bondholders receive treasury upon dollar government securities 6 per cent gold nearly quite equal 9 per cent currency bonds converted capital national banks upon institutions issue circulation bearing 6 per cent interest exempt taxation government states thereby enhanced 2 per cent hands holders thus aggregate 17 per cent may received upon dollar owners government securities system produces results justly regarded favoring expense many led inquiry whether bondholders view large profits enjoyed would averse settlement indebtedness upon plan would yield fair remuneration time taxpayers nation national credit sacredly observed making provision creditors forget due masses people may assumed holders securities already received upon bonds larger amount original investment measured gold standard upon statement facts would seem equitable 6 per cent interest paid government applied reduction principal semiannual installments sixteen years eight months would liquidate entire national debt six per cent gold would present rates equal 9 per cent currency equivalent payment debt one half times fraction less seventeen years connection advantages derived investment would afford public creditors fair liberal compensation use capital satisfied lessons past admonish lender well exacting borrower rigid compliance letter bond provision made payment indebtedness government manner suggested nation rapidly recover wonted prosperity interests require measure taken release large amount capital invested securities government merely unproductive taxation annually consumes would otherwise used enterprising people adding wealth nation commerce one time successfully rivaled great maritime powers rapidly diminished industrial interests depressed languishing condition development inexhaustible resources checked fertile fields south becoming waste want means till release capital new life would infused paralyzed energies people activity vigor imparted every branch industry people need encouragement efforts recover effects rebellion injudicious legislation aim government stimulate prospect early release burdens impede prosperity take burdens shoulders least manifest willingness help bear referring condition circulating medium shall merely reiterate substantially portion last annual message relates subject proportion currency country bear whole value annual produce circulated means question upon political economists agreed controlled legislation must left irrevocable laws everywhere regulate commerce trade circulating medium ever irresistibly flow points greatest demand law demand supply unerring regulates tides ocean indeed currency like tides ebbs flows throughout commercial world beginning rebellion circulation country amounted much circulation notes known nearly seven hundred millions urged amount increased others contend decided reduction absolutely essential best interests country view diverse opinions may well ascertain real value paper issues compared metallic convertible currency purpose let us inquire much gold silver could purchased seven hundred millions paper money circulation probably half amount latter showing paper currency compared gold silver commercial value compressed three hundred fifty millions striking fact makes obvious duty government early may consistent principles sound political economy take measures enable holders notes national banks convert without loss specie equivalent reduction paper circulating medium need necessarily follow however would depend upon law demand supply though borne mind making bank notes convertible coin equivalent present specie value hands holders would enhanced 100 per cent legislation accomplishment result desirable demanded highest public considerations constitution contemplates circulating medium country shall uniform quality value time formation instrument country emerged war revolution suffering effects redundant worthless paper currency sages period anxious protect posterity evils experienced hence providing circulating medium conferred upon congress power coin money regulate value thereof time prohibiting states making anything gold silver tender payment debts anomalous condition currency striking contrast originally designed circulation embraces first notes national banks made receivable dues government excluding imposts creditors excepting payment interest upon bonds securities second legal tender issued united states law requires shall received well payment debts citizens government dues excepting imposts third gold silver coin operation present system finance however metallic currency collected reserved one class government creditors holding bonds semiannually receive interest coin national treasury reason accepted satisfactory people defend us land protect us sea pensioner upon gratitude nation bearing scars wounds received service public servants various departments government farmer supplies soldiers army sailors navy artisan toils nation workshops mechanics laborers build edifices construct forts vessels war payment dues receive depreciated paper another class countrymen deserving paid coin gold silver equal exact justice requires creditors government paid currency possessing uniform value accomplished restoration currency standard established constitution means would remove discrimination may already done create prejudice may become widespread imperil national credit feasibility making currency correspond constitutional standard may seen reference facts derived commercial statistics aggregate product precious metals united states 1849 1867 amounted period net exports specie shows excess product net exports treasury coin circulation states pacific coast millions national banks less taking consideration specie country prior 1849 produced since 1867 accounted exportation returns treasury therefore probably remaining country important facts show completely inferior currency supersede better forcing circulation among masses causing exported mere article trade add money capital foreign lands show necessity retiring paper money return gold silver avenues trade may invited demand created retention home least much productions rich inexhaustible fields may sufficient purposes circulation unreasonable expect return sound currency long government banks continuing issue irredeemable notes fill channels circulation depreciated paper notwithstanding coinage mints since 1849 people strangers currency designed use benefit specimens precious metals bearing national device seldom seen except produced gratify interest excited novelty depreciated paper continued permanent currency country coin become mere article traffic speculation enhancement price indispensable comfort people would wise economy abolish mints thus saving nation care expense incident establishments let precious metals exported bullion time come however government national banks required take efficient steps make necessary arrangements resumption specie payments let specie payments earnestly inaugurated government banks value paper circulation would directly approximate specie standard specie payments resumed government banks notes bills paper issued either less denomination 20 law excluded circulation people may benefit convenience gold silver currency business transactions uniform value home abroad every man property industry every man desires preserve honestly possesses obtain honestly earn direct interest maintaining safe circulating medium medium shall real substantial liable vibrate opinions subject blown blown breath speculation made stable secure disordered currency one greatest political evils undermines virtues necessary support social system encourages propensities destructive happiness wars industry frugality economy fosters evil spirits extravagance speculation asserted one profound gifted statesmen contrivances cheating laboring classes mankind none effectual deludes paper money effectual inventions fertilize rich man fields sweat poor man brow ordinary tyranny oppression excessive taxation bear lightly happiness mass community compared fraudulent currency robberies committed depreciated paper history recorded instruction enough enough demoralizing tendency injustice intolerable oppression virtuous degraded paper currency authorized law way countenanced government one successful devices times peace war expansions revulsions accomplish transfer precious metals great mass people hands hoarded secret places deposited bolts bars people left endure inconvenience sacrifice demoralization resulting use depreciated worthless paper secretary interior report gives valuable information reference interests confided supervision department reviews operations land office pension office patent office indian bureau fiscal year ending june 30 1868 acres public land disposed entire cash receipts general land office period greater amount realized sources previous year entries homestead law cover acres nearly taken act june 21 1866 applies states alabama mississippi louisiana arkansas florida 30th june 1868 names borne pension rolls year ending day total amount paid pensions including expenses disbursement greater expended like purposes preceding year year ending 30th september last expenses patent office exceeded receipts 171 including reissues designs patents issued treaties various indian tribes concluded submitted senate constitutional action cordially sanction stipulations provide reserving lands various tribes may encouraged abandon nomadic habits engage agricultural industrial pursuits policy inaugurated many years since met signal success whenever pursued good faith becoming liberality united states necessity extending far practicable relations aboriginal population greater preceding period whilst furnish subsistence instruction indians guarantee undisturbed enjoyment treaty rights habitually insist upon faithful observance agreement remain within respective reservations mode collisions tribes whites avoided safety frontier settlements secured companies constructing railway omaha sacramento energetically engaged prosecuting work believed line completed expiration next fiscal year 6 per cent bonds issued companies amounted 5th instant additional work performed extent secretary interior august last invited attention report government director union pacific railroad company specially instructed examine location construction equipment road submitted opinion certain questions regard authority executive arose upon report time time presented commissioners appointed inspect successive section work carefully considering law case affirmed right executive order necessary thorough revision entire road commissioners thereupon appointed examine lines recently submitted statement investigations report secretary interior furnishes specific information report secretary war contains information interest importance respecting several bureaus war department operations army strength military force 30th september last men computed 1st january next number decreased opinion secretary war within next year considerable diminution infantry force may made without detriment interests country view great expense attending military peace establishment absolute necessity retrenchment wherever applied hoped congress sanction reduction report recommends 1860 sixteen thousand three hundred men cost nation sum estimated necessary support army fiscal year ending june 30 1870 estimates war department last two fiscal years 1867 1868 actual expenditures periods respectively estimate submitted december last fiscal year ending june 30 1869 expenditures first quarter ending 30th september last secretary treasury gives amount probably required remaining three quarters reduction army making aggregate cost year considerably excess millions difference estimates expenditures three fiscal years named thus shown single branch public service report secretary navy exhibits operations department navy year considerable reduction force effected 42 vessels carrying 411 guns six squadrons established different parts world three vessels returning united states 4 used storeships leaving actual cruising force 35 vessels carrying 356 guns total number vessels navy 206 mounting guns vessels every description use armed 696 guns number enlisted men service including apprentices reduced increase facilities recommended measure event war promotive economy security thorough systematic survey north pacific ocean advised view recent acquisitions expanding commerce increasing intercourse pacific states asia naval pension fund consists moiety avails prizes captured war amounts exception taken act 23d july last reduces interest fund loaned government secretary trustee 3 per cent instead 6 per cent originally stipulated investment made amendment pension laws suggested remedy omissions defects existing enactments expenditures department last fiscal year estimates coming year amount report furnishes full clear exhibit operations condition postal service ordinary postal revenue fiscal year ending june 30 total expenditures embracing service special appropriations made congress amounted showing excess expenditures deducting expenditures sum amount appropriations special service excess expenditures using unexpended balance treasury actual sum special appropriation required meet deficiency causes produced large excess expenditure revenue restoration service late insurgent states putting operation new service established acts congress amounted within last two years half miles equal whole amount service close war new postal conventions great britain north germany belgium netherlands switzerland italy respectively carried effect provisions important improvements resulted reduced rates international postage enlarged mail facilities european countries cost united states transatlantic ocean mail service since january 1 1868 largely lessened operation new conventions reduction effected new arrangements ocean mail steamship service went effect date attention congress invited practical suggestions recommendations made report important question occurred last year accustomed cordial friendly intercourse costa rica guatemala honduras san salvador france austria belgium switzerland portugal netherlands denmark sweden norway rome greece turkey persia egypt liberia morocco tripoli tunis muscat siam borneo madagascar cordial relations also maintained argentine oriental republics expressed wish congress national good offices might tendered republics also brazil paraguay bringing end calamitous war long raging valley la plata assiduously complied kindly acknowledged belligerents important negotiation however thus far without result charles washburn late united states minister paraguay resigned desirous return united states commanding south atlantic squadron early directed send ship war asuncion capital paraguay receive washburn family remove situation represented endangered faction foreign war brazilian commander allied invading forces refused permission wasp pass blockading forces vessel returned accustomed anchorage remonstrance made refusal promptly overruled wasp therefore resumed errand received washburn family conveyed safe convenient seaport meantime excited controversy arisen president paraguay late united states minister understood grew proceedings giving asylum united states legation alleged enemies republic question right give asylum one always difficult often productive great embarrassment states well organized established foreign powers refuse either concede exercise right except persons actually belonging diplomatic service hand powers insist upon exercising right asylum states law nations fully acknowledged respected obeyed president paraguay understood opposed washburn proceedings injurious improbable charge personal complicity insurrection treason correspondence however yet reached united states washburn connection controversy represents two united states citizens attached legation arbitrarily seized side leaving capital paraguay committed prison subjected torture purpose procuring confessions criminality testimony support president allegation united states minister mcmahon newly appointed minister paraguay reached la plata instructed proceed without delay asuncion investigate whole subject commanding united states south atlantic squadron directed attend new minister proper naval force sustain demands occasion may require vindicate rights united states citizens referred others may exposed danger theater war exceptions friendly relations maintained united states brazil paraguay relations past year bolivia ecuador peru chile become especially friendly cordial spain republics peru bolivia ecuador expressed willingness accept mediation united states terminating war upon south pacific coast chile finally declared upon question meantime conflict practically exhausted since belligerent hostile movement made either party last two years indications present purpose resume hostilities either side great britain france cordially seconded proposition mediation forego hope may soon accepted belligerents lead secure establishment peace friendly relations spanish american republics pacific spain result would attended common benefits belligerents much advantage commercial nations communicate consideration congress correspondence shows bolivian republic established extremely liberal principle receiving citizenship citizen united states american republics upon simple condition voluntary registry correspondence herewith submitted found painfully replete accounts ruin wretchedness produced recent earthquakes unparalleled severity republics peru ecuador bolivia diplomatic agents naval officers united states present countries time disasters furnished relief power sufferers promptly rewarded grateful touching acknowledgments congress peru appeal charity answered much liberality connection submit appeal made swiss republic whose government institutions kindred behalf inhabitants suffering extreme destitution produced recent devastating inundations relations mexico year marked increasing growth mutual confidence mexican government yet acted upon three treaties celebrated last summer establishing rights naturalized citizens upon liberal basis regulating consular powers adjustment mutual claims commercial nations well friends republican institutions occasion regret frequent local disturbances occur constituent states colombia nothing occurred however affect harmony cordial friendship several years existed youthful vigorous republic negotiations pending view survey construction ship canal across isthmus darien auspices united states hope able submit results negotiation senate present session liberal treaty entered last year united states nicaragua ratified latter republic costa rica earnestness sincerely friendly neighbor solicits reciprocity trade commend consideration congress convention created treaty united states venezuela july 1865 mutual adjustment claims held decisions received department state government united states venezuela subverted provisional government instituted circumstances promise durability formally recognized reluctantly obliged ask explanation satisfaction national injuries committed president hayti political social condition republics hayti domingo unsatisfactory painful abolition slavery carried effect throughout island domingo entire west indies except spanish islands cuba porto rico followed profound popular conviction rightfulness republican institutions intense desire secure attempt however establish republics encounters many obstacles may supposed result habits colonial supineness dependence upon european monarchical powers united states occasions professed decided unwillingness part continent adjacent islands shall made theater new establishment monarchical power little done us hand attach communities surrounded country lend even moral support efforts resolutely constantly making secure republican institutions indeed question grave consideration whether recent present example calculated check growth expansion free principles make communities distrust dread government consigns military domination states integral parts federal union ready resist attempts nations extend hemisphere monarchical institutions europe assumes establish large portion people rule absolute harsh tyrannical known civilized powers acquisition alaska made view extending national jurisdiction republican principles american hemisphere believing step could taken direction last year entered treaty king denmark purchase islands thomas john best terms attainable express consent people islands treaty still remains consideration senate new convention entered denmark enlarging time fixed final ratification original treaty comprehensive national policy would seem sanction acquisition incorporation federal union several adjacent continental insular communities speedily done peacefully lawfully without violation national justice faith honor foreign possession control communities hitherto hindered growth impaired influence united states chronic revolution anarchy would equally injurious one firmly established independent republic incorporated united states would new source strength power conforming administration principles occasion lent support toleration unlawful expeditions set foot upon plea republican propagandism national extension aggrandizement necessity however repressing unlawful movements clearly indicates duty rests upon us adapting legislative action new circumstances decline european monarchical power influence increase american republican ideas interests sympathies long become necessary government lend effective aid solution political social problems continually kept world two republics island domingo disclosing distinctly heretofore island cuba subject commended consideration earnestness satisfied time arrived even direct proceeding proposition annexation two republics island domingo would receive consent people interested would also give satisfaction foreign nations aware upon question extending possessions apprehended political system successfully applied area extended continent conviction rapidly gaining ground american mind increased facilities intercommunication portions earth principles free government embraced constitution faithfully maintained carried would prove sufficient strength breadth comprehend within sphere influence civilized nations world attention senate congress respectfully invited treaty establishment commercial reciprocity hawaiian kingdom entered last year already ratified government attitude united states toward islands different stand toward west indies known felt hawaiian government people government institutions feeble precarious united states near neighbor would unwilling see islands pass foreign control prosperity continually disturbed expectations alarms unfriendly political proceedings well united states foreign powers reciprocity treaty could materially diminish revenues united states would guaranty good forbearance nations people islands shall distant day voluntarily apply admission union emperor russia acceded treaty negotiated january last security interest manufacturers commerce invited attention importance establishing seems easy practicable fair equal regulation vast fisheries belonging two nations waters north pacific ocean two treaties united states italy regulation consular powers extradition criminals negotiated ratified last session congress accepted confirmed italian government liberal consular convention negotiated belgium submitted senate important treaties negotiated united states north germany bavaria regulation rights naturalized citizens duly ratified exchanged similar treaties entered kingdoms belgium wurtemberg grand duchies baden hope soon able submit equally satisfactory conventions character course negotiation respective governments spain italy ottoman empire examination claims united states hudsons bay company puget sound agricultural company account certain possessory rights state oregon territory washington alleged companies virtue provisions treaty united states great britain june 15 1846 diligently prosecuted direction joint international commission submitted adjudication treaty two governments july 1 1863 expected concluded early day practical regulation concerning colonial trade fisheries accomplished treaty united states great britain congress shall expressed judgment concerning principles involved three questions however united states great britain remain open adjustment mutual rights naturalized citizens boundary question involving title island san juan pacific coast mutual claims arising since year 1853 citizens subjects two countries injuries depredations committed authority respective governments negotiations upon subjects pending without hope able lay senate consideration present session protocols calculated bring end justly exciting controversies advised action chinese government upon liberal auspicious treaty recently celebrated plenipotentiaries capital japan remains theater civil war marked religious incidents political severities peculiar empire executive hitherto maintained strict neutrality among belligerents acknowledges pleasure frankly fully sustained course enlightened concurrence cooperation treaty powers namely great britain france netherlands north germany italy spain recently undergone revolution marked extraordinary unanimity preservation order provisional government established madrid recognized friendly intercourse long happily existed two countries remains unchanged renew recommendation contained communication congress dated 18th july last copy accompanies message judgment people taken propriety amending federal constitution shall provide first election president direct vote people instead agency electors making ineligible reelection second term second distinct designation person shall discharge duties president event vacancy office death resignation removal president third election senators united states directly people several states instead legislatures fourth limitation period years terms federal judges profoundly impressed propriety making important modifications constitution respectfully submit early mature consideration congress far possible remove pretext violations organic law remedying imperfections time experience may develop ever remembering constitution time exists changed explicit authentic act whole people sacredly obligatory upon performance duty imposed upon constitution thus communicated congress information state union recommended consideration measures seemed necessary expedient carried effect hasten accomplishment great beneficent purposes constitution ordained comprehensively states form perfect union establish justice insure domestic tranquillity provide common defense promote general welfare secure blessings liberty posterity congress vested legislative powers upon devolves responsibility well framing unwise excessive laws neglecting devise adopt measures absolutely demanded wants country let us earnestly hope expiration respective terms service rapidly drawing close providence guide counsels strengthen preserve federal unions inspire reverence constitution restore prosperity happiness whole people promote earth peace good toward men
upon reassemble congress become duty call attention state union continue disorganized condition various law pass upon subject reconstruction may safely assume axiom government state greatest wrong inflict upon people cause unjust arbitrary legislation unrelenting decree despotic ruler timely revocation injurious oppressive measure great good confer upon nation legislator ruler wisdom magnanimity retrace step convince error sooner later reward respect gratitude intelligent patriotic people history although embrace period less century affords abundant proof domestic trouble directly traceable violation organic law excessive legislation strike illustration fact furnish enactment past three year upon question reconstruction fair trial substantially fail prove pernicious result seem good reason longer remain upon statute book state constitution guarantee republican form government reduce military dependency people make subject arbitrary command general although constitution require state shall represent congress virginia mississippi texas yet exclude two house contrary express provision instrument deny participation recent election president unite state attempt place white population domination person color south impaired destroyed kindly relation previously exist mutual distrust engender feeling animosity lead instance collision bloodshed prevented cooperation two race essential success industrial enterprise southern state inhabitant state alone suffer disturbed condition affair grow congressional enactment entire union agitate grave apprehension trouble might involve peace nation interest injuriously affect derangement business labor consequent want prosperity throughout portion country federal constitution magna charta american right whose wise salutary provision successfully conduct domestic foreign affair sustain peace war become great nation among power earth must assuredly adequate settlement question grow civil war wag alone vindication great fact make manifest condition country congress assemble month december 1865 civil strife cease spirit rebellion spend entire force southern state people warm national life throughout whole country healthy reaction public sentiment take place application simple yet effective provision constitution executive department voluntary aid state bring work restoration near completion within scope authority nation encourage prospect early satisfactory adjustment difficulty congress however intervene refuse perfect work nearly consummate declined admit member unrepresented state adopt series measure arrest progress restoration frustrate successfully accomplish three year agitation strife leave country attainment union fraternal feeling inception congressional plan reconstruction need argument show legislation produce baneful consequence abrogate else make conform genuine principle republican government influence party passion sectional prejudice act pass warranted constitution congress already make familiar view respect bill experience prove repeal demanded best interest country remain force president enjoin rigid accountability public officer essential honest efficient execution law revocation would enable executive department exercise power appointment removal accordance original design federal constitution act march 2 1867 make appropriation support army year end june 30 1868 purpose contain provision interfere president constitutional function commander chief army deny state union right protect mean militia provision annul first might time great emergency seriously embarrass executive effort employ direct common strength nation protection preservation contrary express declaration constitution militia necessary security free state right people keep bear arm shall infringe believe repeal law would accept american people least partial return fundamental principle government indication hereafter constitution make nation safe unerring guide productive permanent benefit country permit stand many monument deficient wisdom characterize recent legislation condition finance demand early earnest consideration congress compare growth population public expenditures reach amount unprecedented history population unite state 1790 nearly people increase decade 33 per cent reach 1860 increase 700 per cent population 1790 1869 estimate reach increase 868 per cent year annual expenditures federal government 1791 1820 1850 million 1860 million 1865 nearly thirteen hundred million 1869 estimate secretary treasury last annual report three hundred million compare public disbursement 1869 estimated 1791 see increase expenditure since begin government per cent increase population period 868 per cent expense government 1860 year peace immediately precede war sixty three million 1869 year peace three year war estimate three hundred million increase 489 per cent increase population 21 per cent period statistic show 1791 annual national expense compare population little 1 per caput 1860 2 per caput 1869 reach extravagant sum per caput observe statement refer exhibit disbursement peace period may therefore interest compare expenditures three war period war great britain mexican war war rebellion 1814 annual expense incident war 1812 reach high amount million population slightly exceed showing expenditure per caput 1847 expenditures grow war mexico reach million population give per caput war expense year 1865 expenditures call rebellion reach vast amount twelve hundred ninety million compare population give per caput 4th day march 1789 30th june 1861 entire expenditure government period engage war great britain mexico involve hostility powerful indian tribe louisiana purchase france cost florida cede u spain five million california acquire mexico fifteen million territory new mexico obtain texas sum ten million early 1861 war rebellion commence 1st july year 30th june 1865 public expenditure reach enormous aggregate hundred million three year peace intervened time disbursement government successively five hundred twenty million three hundred million three hundred million add amount three hundred million estimate necessary fiscal year end 30th june 1869 obtain total expenditure four year immediately succeed war nearly much expended year precede rebellion embrace extraordinary expenditure already name startle fact clearly illustrate necessity retrenchment branch public service abuse tolerate war preservation nation endure people profound peace prevail receipt internal revenue custom past three year gradually diminish continuance useless extravagant expenditure involve u national bankruptcy else make inevitable increase tax already onerous many respect obnoxious account inquisitorial character one hundred million annually expend military force large portion employ execution law unnecessary unconstitutional one hundred fifty million require year pay interest public debt army taxgatherers impoverishes nation public agent place congress beyond control executive divert legitimate purpose large sum money collect people name government judicious legislation prudent economy alone remedy defect avert evil suffer exist fail diminish confidence public councils weaken attachment respect people toward political institution without proper care small balance estimate remain treasury close present fiscal year realize additional million add debt enumerate billion show able comprehensive report secretary treasury receipt fiscal year end june 30 1868 expenditure period leave treasury surplus estimate receipt present fiscal year end june 30 1869 expenditure show small balance favor government fiscal year end june 30 1870 estimate receipt amount expenditure leave estimate surplus becomes proper connection make brief reference public indebtedness accumulate alarm rapidity assume colossal proportion 1789 government commence operation federal constitution burden indebtedness create war revolution amount reduce 1812 war declare great britain three year struggle follow largely increased national obligation 1816 attain sum wise economical legislation however enabled government pay entire amount within period twenty year extinguishment national debt fill land rejoice one great event president jackson administration redemption large fund remain treasury deposit several state condition return required public want 1849 year termination expensive war mexico find involved debt amount owe government 1860 prior outbreak rebellion spring 1861 civil war commence year continuance make enormous addition debt spring 1865 nation successfully emerge conflict obligation government reach immense sum secretary treasury show 1st day november 1867 amount reduce time report exhibit increase past year debt 1st day november last state estimate secretary return past month add liability sum make total increase thirteen month message congress december 4 1865 suggested policy devise without oppressive people would begin effect reduction debt persist discharge fully within definite number year secretary treasury forcibly recommend legislation character justly urge long deferred difficult must become accomplishment follow wise precedent establish 1789 1816 without delay make provision payment obligation early period may practicable fruit labor enjoy citizen rather use build sustain moneyed monopoly land foreign debt already compute secretary treasury citizen foreign country receive interest upon large portion security american taxpayer make contribute large sum support idea debt become permanent time discard involve taxation heavy borne payment every sixteen year present rate interest amount equal original sum vast debt permit become permanent increase must eventually gather hand enable exert dangerous control power affair government borrower would become servant lenders lender master people pride upon give freedom color race shame people toleration usurpation profligacy suffer become enslaved merely exchange slave owner new taskmaster shape bondholder taxgatherers besides permanent debt pertain monarchical government tend monopoly perpetuity class legislation totally irreconcilable free institution introduce republican system would gradually surely sap foundation eventually subvert governmental fabric erect upon ruin moneyed aristocracy sacred duty transmit unimpaired posterity blessing liberty bequeath u founder republic example teach follow u carefully avoid danger threaten free independent people various plan propose payment public debt however may vary time mode redeem seem general concurrence propriety justness reduction present rate interest secretary treasury report recommend 5 per cent congress bill pass prior adjournment 27th july last agree upon 4 4 per cent many 3 per cent hold amply sufficient return investment general impression exorbitancy exist rate interest lead inquiry public mind respect consideration government actually receive bond conclusion become prevalent amount obtain real money three four hundred per cent less obligation issue return deny pay extravagant percentage use money borrow paper currency greatly depreciate value coin fact make apparent consider bondholder receive treasury upon dollar government security 6 per cent gold nearly quite equal 9 per cent currency bond convert capital national bank upon institution issue circulation bear 6 per cent interest exempt taxation government state thereby enhance 2 per cent hand holder thus aggregate 17 per cent may receive upon dollar owner government security system produce result justly regard favor expense many lead inquiry whether bondholder view large profit enjoy would averse settlement indebtedness upon plan would yield fair remuneration time taxpayer nation national credit sacredly observe make provision creditor forget due mass people may assume holder security already receive upon bond large amount original investment measure gold standard upon statement fact would seem equitable 6 per cent interest pay government apply reduction principal semiannual installment sixteen year eight month would liquidate entire national debt six per cent gold would present rate equal 9 per cent currency equivalent payment debt one half time fraction less seventeen year connection advantage derive investment would afford public creditor fair liberal compensation use capital satisfy lesson past admonish lender well exact borrower rigid compliance letter bond provision make payment indebtedness government manner suggest nation rapidly recover wonted prosperity interest require measure take release large amount capital invest security government merely unproductive taxation annually consumes would otherwise use enterprising people add wealth nation commerce one time successfully rival great maritime power rapidly diminish industrial interest depress languish condition development inexhaustible resource check fertile field south become waste want mean till release capital new life would infuse paralyzed energy people activity vigor impart every branch industry people need encouragement effort recover effect rebellion injudicious legislation aim government stimulate prospect early release burden impede prosperity take burden shoulder least manifest willingness help bear refer condition circulate medium shall merely reiterate substantially portion last annual message relates subject proportion currency country bear whole value annual produce circulate mean question upon political economist agree controlled legislation must leave irrevocable law everywhere regulate commerce trade circulate medium ever irresistibly flow point great demand law demand supply unerring regulates tide ocean indeed currency like tide ebb flow throughout commercial world begin rebellion circulation country amount much circulation note know nearly seven hundred million urged amount increase others contend decide reduction absolutely essential best interest country view diverse opinion may well ascertain real value paper issue compare metallic convertible currency purpose let u inquire much gold silver could purchase seven hundred million paper money circulation probably half amount latter show paper currency compare gold silver commercial value compress three hundred fifty million strike fact make obvious duty government early may consistent principle sound political economy take measure enable holder note national bank convert without loss specie equivalent reduction paper circulate medium need necessarily follow however would depend upon law demand supply though borne mind make bank note convertible coin equivalent present specie value hand holder would enhance 100 per cent legislation accomplishment result desirable demand high public consideration constitution contemplate circulate medium country shall uniform quality value time formation instrument country emerge war revolution suffer effect redundant worthless paper currency sag period anxious protect posterity evil experience hence provide circulate medium confer upon congress power coin money regulate value thereof time prohibit state make anything gold silver tender payment debt anomalous condition currency strike contrast originally design circulation embrace first note national bank make receivable dues government exclude impost creditor except payment interest upon bond security second legal tender issue united state law require shall receive well payment debt citizens government due except impost third gold silver coin operation present system finance however metallic currency collect reserve one class government creditor hold bond semiannually receive interest coin national treasury reason accept satisfactory people defend u land protect u sea pensioner upon gratitude nation bear scar wound received service public servants various department government farmer supply soldier army sailor navy artisan toil nation workshop mechanic laborer build edifice construct fort vessel war payment due receive depreciate paper another class countryman deserve pay coin gold silver equal exact justice require creditor government pay currency possess uniform value accomplish restoration currency standard establish constitution mean would remove discrimination may already do create prejudice may become widespread imperil national credit feasibility make currency correspond constitutional standard may see reference fact derive commercial statistic aggregate product precious metal unite state 1849 1867 amounted period net export specie show excess product net export treasury coin circulation state pacific coast million national bank less take consideration specie country prior 1849 produce since 1867 account exportation return treasury therefore probably remain country important fact show completely inferior currency supersede good force circulation among mass cause export mere article trade add money capital foreign land show necessity retire paper money return gold silver avenue trade may invite demand create retention home least much production rich inexhaustible field may sufficient purpose circulation unreasonable expect return sound currency long government bank continue issue irredeemable note fill channel circulation depreciate paper notwithstanding coinage mint since 1849 people stranger currency design use benefit specimen precious metal bear national device seldom see except produce gratify interest excite novelty depreciate paper continue permanent currency country coin become mere article traffic speculation enhancement price indispensable comfort people would wise economy abolish mint thus save nation care expense incident establishment let precious metal export bullion time come however government national bank require take efficient step make necessary arrangement resumption specie payment let specie payment earnestly inaugurated government bank value paper circulation would directly approximate specie standard specie payment resume government bank note bill paper issue either less denomination 20 law exclude circulation people may benefit convenience gold silver currency business transaction uniform value home abroad every man property industry every man desire preserve honestly possess obtain honestly earn direct interest maintain safe circulate medium medium shall real substantial liable vibrate opinion subject blow blown breath speculation make stable secure disorder currency one great political evil undermines virtue necessary support social system encourage propensity destructive happiness war industry frugality economy foster evil spirit extravagance speculation assert one profound gift statesman contrivance cheat laboring class mankind none effectual deludes paper money effectual invention fertilize rich man field sweat poor man brow ordinary tyranny oppression excessive taxation bear lightly happiness mass community compare fraudulent currency robbery commit depreciated paper history record instruction enough enough demoralizing tendency injustice intolerable oppression virtuous degrade paper currency authorize law way countenanced government one successful device time peace war expansion revulsion accomplish transfer precious metal great mass people hand hoard secret place deposit bolts bar people leave endure inconvenience sacrifice demoralization result use depreciate worthless paper secretary interior report give valuable information reference interest confide supervision department review operation land office pension office patent office indian bureau fiscal year end june 30 1868 acre public land dispose entire cash receipt general land office period great amount realize source previous year entry homestead law cover acres nearly take act june 21 1866 applies state alabama mississippi louisiana arkansas florida 30th june 1868 name borne pension roll year end day total amount pay pension include expense disbursement great expend like purpose precede year year end 30th september last expense patent office exceed receipt 171 include reissue designs patent issue treaty various indian tribe conclude submit senate constitutional action cordially sanction stipulation provide reserve land various tribe may encourage abandon nomadic habit engage agricultural industrial pursuit policy inaugurate many year since meet signal success whenever pursue good faith become liberality united state necessity extend far practicable relation aboriginal population great precede period whilst furnish subsistence instruction indians guarantee undisturbed enjoyment treaty right habitually insist upon faithful observance agreement remain within respective reservation mode collision tribes white avoid safety frontier settlement secure company construct railway omaha sacramento energetically engage prosecuting work believe line complete expiration next fiscal year 6 per cent bond issue company amount 5th instant additional work perform extent secretary interior august last invited attention report government director union pacific railroad company specially instructed examine location construction equipment road submit opinion certain question regard authority executive arise upon report time time present commissioner appoint inspect successive section work carefully consider law case affirm right executive order necessary thorough revision entire road commissioner thereupon appoint examine line recently submit statement investigation report secretary interior furnishes specific information report secretary war contain information interest importance respect several bureau war department operation army strength military force 30th september last men compute 1st january next number decrease opinion secretary war within next year considerable diminution infantry force may make without detriment interest country view great expense attend military peace establishment absolute necessity retrenchment wherever apply hop congress sanction reduction report recommend 1860 sixteen thousand three hundred men cost nation sum estimate necessary support army fiscal year end june 30 1870 estimate war department last two fiscal year 1867 1868 actual expenditure period respectively estimate submit december last fiscal year end june 30 1869 expenditure first quarter end 30th september last secretary treasury give amount probably require remain three quarter reduction army make aggregate cost year considerably excess million difference estimate expenditure three fiscal year name thus show single branch public service report secretary navy exhibit operation department navy year considerable reduction force effect 42 vessel carry 411 gun six squadron establish different part world three vessel return united state 4 use storeships leave actual cruise force 35 vessel carry 356 gun total number vessel navy 206 mount gun vessel every description use arm 696 gun number enlist men service include apprentice reduce increase facility recommend measure event war promotive economy security thorough systematic survey north pacific ocean advise view recent acquisition expand commerce increase intercourse pacific state asia naval pension fund consist moiety avail prize capture war amount exception take act 23d july last reduces interest fund loan government secretary trustee 3 per cent instead 6 per cent originally stipulate investment make amendment pension law suggest remedy omission defect exist enactment expenditures department last fiscal year estimate come year amount report furnish full clear exhibit operation condition postal service ordinary postal revenue fiscal year end june 30 total expenditure embrace service special appropriation make congress amount show excess expenditure deduct expenditure sum amount appropriation special service excess expenditures use unexpended balance treasury actual sum special appropriation require meet deficiency cause produce large excess expenditure revenue restoration service late insurgent state put operation new service establish act congress amount within last two year half mile equal whole amount service close war new postal convention great britain north germany belgium netherlands switzerland italy respectively carried effect provision important improvement result reduced rate international postage enlarge mail facility european country cost united state transatlantic ocean mail service since january 1 1868 largely lessened operation new convention reduction effect new arrangement ocean mail steamship service go effect date attention congress invite practical suggestion recommendation make report important question occur last year accustom cordial friendly intercourse costa rica guatemala honduras san salvador france austria belgium switzerland portugal netherlands denmark sweden norway rome greece turkey persia egypt liberia morocco tripoli tunis muscat siam borneo madagascar cordial relation also maintain argentine oriental republic express wish congress national good office might tender republic also brazil paraguay bring end calamitous war long rag valley la plata assiduously comply kindly acknowledge belligerent important negotiation however thus far without result charles washburn late united state minister paraguay resign desirous return united state command south atlantic squadron early direct send ship war asuncion capital paraguay receive washburn family remove situation represent endangered faction foreign war brazilian commander ally invading force refuse permission wasp pas blockading force vessel return accustomed anchorage remonstrance make refusal promptly overrule wasp therefore resume errand receive washburn family convey safe convenient seaport meantime excite controversy arisen president paraguay late united state minister understood grow proceeding give asylum united state legation allege enemy republic question right give asylum one always difficult often productive great embarrassment state well organize establish foreign power refuse either concede exercise right except person actually belong diplomatic service hand power insist upon exercise right asylum state law nation fully acknowledge respect obeyed president paraguay understand opposed washburn proceeding injurious improbable charge personal complicity insurrection treason correspondence however yet reach united state washburn connection controversy represent two united state citizen attach legation arbitrarily seize side leave capital paraguay commit prison subject torture purpose procure confession criminality testimony support president allegation unite state minister mcmahon newly appoint minister paraguay reach la plata instruct proceed without delay asuncion investigate whole subject commanding united state south atlantic squadron direct attend new minister proper naval force sustain demand occasion may require vindicate right unite state citizen refer others may expose danger theater war exception friendly relation maintain united state brazil paraguay relation past year bolivia ecuador peru chile become especially friendly cordial spain republic peru bolivia ecuador express willingness accept mediation united state terminate war upon south pacific coast chile finally declare upon question meantime conflict practically exhaust since belligerent hostile movement make either party last two year indication present purpose resume hostility either side great britain france cordially second proposition mediation forego hope may soon accept belligerent lead secure establishment peace friendly relation spanish american republic pacific spain result would attend common benefit belligerent much advantage commercial nation communicate consideration congress correspondence show bolivian republic establish extremely liberal principle receive citizenship citizen united state american republic upon simple condition voluntary registry correspondence herewith submit find painfully replete account ruin wretchedness produce recent earthquake unparalleled severity republic peru ecuador bolivia diplomatic agent naval officer united state present country time disaster furnish relief power sufferer promptly reward grateful touch acknowledgment congress peru appeal charity answer much liberality connection submit appeal make swiss republic whose government institution kindred behalf inhabitant suffer extreme destitution produce recent devastating inundation relation mexico year mark increase growth mutual confidence mexican government yet act upon three treaty celebrate last summer establish right naturalize citizen upon liberal basis regulate consular power adjustment mutual claim commercial nation well friend republican institution occasion regret frequent local disturbance occur constituent state colombia nothing occur however affect harmony cordial friendship several year exist youthful vigorous republic negotiation pending view survey construction ship canal across isthmus darien auspex united state hope able submit result negotiation senate present session liberal treaty enter last year unite state nicaragua ratify latter republic costa rica earnestness sincerely friendly neighbor solicits reciprocity trade commend consideration congress convention create treaty united state venezuela july 1865 mutual adjustment claim hold decision receive department state government unite state venezuela subvert provisional government institute circumstance promise durability formally recognize reluctantly oblige ask explanation satisfaction national injury commit president hayti political social condition republic hayti domingo unsatisfactory painful abolition slavery carry effect throughout island domingo entire west indie except spanish island cuba porto rico follow profound popular conviction rightfulness republican institution intense desire secure attempt however establish republic encounter many obstacle may suppose result habit colonial supineness dependence upon european monarchical power united state occasion profess decided unwillingness part continent adjacent island shall make theater new establishment monarchical power little do u hand attach community surround country lend even moral support effort resolutely constantly make secure republican institution indeed question grave consideration whether recent present example calculate check growth expansion free principle make community distrust dread government consigns military domination state integral part federal union ready resist attempt nation extend hemisphere monarchical institution europe assume establish large portion people rule absolute harsh tyrannical know civilized power acquisition alaska make view extend national jurisdiction republican principle american hemisphere believe step could take direction last year enter treaty king denmark purchase islands thomas john best term attainable express consent people islands treaty still remain consideration senate new convention enter denmark enlarge time fix final ratification original treaty comprehensive national policy would seem sanction acquisition incorporation federal union several adjacent continental insular community speedily do peacefully lawfully without violation national justice faith honor foreign possession control communities hitherto hindered growth impaired influence united state chronic revolution anarchy would equally injurious one firmly establish independent republic incorporate united state would new source strength power conform administration principle occasion lent support toleration unlawful expedition set foot upon plea republican propagandism national extension aggrandizement necessity however repress unlawful movement clearly indicate duty rest upon u adapt legislative action new circumstance decline european monarchical power influence increase american republican idea interest sympathy long become necessary government lend effective aid solution political social problem continually keep world two republic island domingo disclose distinctly heretofore island cuba subject commend consideration earnestness satisfy time arrive even direct proceed proposition annexation two republic island domingo would receive consent people interested would also give satisfaction foreign nation aware upon question extend possession apprehend political system successfully applied area extend continent conviction rapidly gain ground american mind increase facility intercommunication portion earth principle free government embrace constitution faithfully maintain carry would prove sufficient strength breadth comprehend within sphere influence civilize nation world attention senate congress respectfully invite treaty establishment commercial reciprocity hawaiian kingdom enter last year already ratified government attitude united state toward island different stand toward west indie know felt hawaiian government people government institution feeble precarious united state near neighbor would unwilling see islands pass foreign control prosperity continually disturbed expectation alarm unfriendly political proceeding well united state foreign power reciprocity treaty could materially diminish revenue united state would guaranty good forbearance nation people islands shall distant day voluntarily apply admission union emperor russia accede treaty negotiate january last security interest manufacturer commerce invited attention importance establish seem easy practicable fair equal regulation vast fishery belong two nation water north pacific ocean two treaty united state italy regulation consular power extradition criminal negotiate ratify last session congress accept confirm italian government liberal consular convention negotiate belgium submit senate important treaty negotiate united state north germany bavaria regulation right naturalize citizen duly ratify exchange similar treaty enter kingdom belgium wurtemberg grand duchy baden hope soon able submit equally satisfactory convention character course negotiation respective government spain italy ottoman empire examination claim united state hudson bay company puget sound agricultural company account certain possessory right state oregon territory washington allege company virtue provision treaty united state great britain june 15 1846 diligently prosecute direction joint international commission submit adjudication treaty two government july 1 1863 expect conclude early day practical regulation concern colonial trade fishery accomplish treaty united state great britain congress shall express judgment concern principle involve three question however united state great britain remain open adjustment mutual right naturalize citizen boundary question involve title island san juan pacific coast mutual claim arise since year 1853 citizen subject two country injury depredation commit authority respective government negotiation upon subject pending without hope able lay senate consideration present session protocol calculate bring end justly exciting controversy advise action chinese government upon liberal auspicious treaty recently celebrate plenipotentiary capital japan remain theater civil war mark religious incident political severity peculiar empire executive hitherto maintain strict neutrality among belligerent acknowledges pleasure frankly fully sustain course enlighten concurrence cooperation treaty power namely great britain france netherlands north germany italy spain recently undergone revolution mark extraordinary unanimity preservation order provisional government establish madrid recognize friendly intercourse long happily exist two country remain unchanged renew recommendation contain communication congress date 18th july last copy accompanies message judgment people take propriety amend federal constitution shall provide first election president direct vote people instead agency elector make ineligible reelection second term second distinct designation person shall discharge duty president event vacancy office death resignation removal president third election senator unite state directly people several state instead legislatures fourth limitation period year term federal judge profoundly impressed propriety make important modification constitution respectfully submit early mature consideration congress far possible remove pretext violation organic law remedy imperfection time experience may develop ever remember constitution time exist change explicit authentic act whole people sacredly obligatory upon performance duty impose upon constitution thus communicate congress information state union recommend consideration measure seem necessary expedient carry effect hasten accomplishment great beneficent purpose constitution ordain comprehensively states form perfect union establish justice insure domestic tranquillity provide common defense promote general welfare secure blessing liberty posterity congress vest legislative power upon devolves responsibility well frame unwise excessive law neglect devise adopt measure absolutely demand want country let u earnestly hope expiration respective term service rapidly draw close providence guide counsel strengthen preserve federal union inspire reverence constitution restore prosperity happiness whole people promote earth peace good toward men