In the midst of unprecedented political troubles we have cause of great gratitude to God for unusual good health and most abundant harvests. You will not be surprised to learn that in the peculiar exigencies of the times our intercourse with foreign nations has been attended with profound solicitude, chiefly turning upon our own domestic affairs. A disloyal portion of the American people have during the whole year been engaged in an attempt to divide and destroy the Union. A nation which endures factious domestic division is exposed to disrespect abroad, and one party, if not both, is sure sooner or later to invoke foreign intervention. Nations thus tempted to interfere are not always able to resist the counsels of seeming expediency and ungenerous ambition, although measures adopted under such influences seldom fail to be unfortunate and injurious to those adopting them. The disloyal citizens of the United States who have offered the ruin of our country in return for the aid and comfort which they have invoked abroad have received less patronage and encouragement than they probably expected. If it were just to suppose, as the insurgents have seemed to assume, that foreign nations in this case, discarding all moral, social, and treaty obligations, would act solely and selfishly for the most speedy restoration of commerce, including especially the acquisition of cotton, those nations appear as yet not to have seen their way to their object more directly or clearly through the destruction than through the preservation of the Union. If we could dare to believe that foreign nations are actuated by no higher principle than this, I am quite sure a sound argument could be made to show them that they can reach their aim more readily and easily by aiding to crush this rebellion than by giving encouragement to it. The principal lever relied on by the insurgents for exciting foreign nations to hostility against us, as already intimated, is the embarrassment of commerce. Those nations, however, not improbably saw from the first that it was the Union which made as well our foreign as our domestic commerce. They can scarcely have failed to perceive that the effort for disunion produces the existing difficulty, and that one strong nation promises more durable peace and a more extensive, valuable, and reliable commerce than can the same nation broken into hostile fragments. It is not my purpose to review our discussions with foreign states, because, whatever might be their wishes or dispositions, the integrity of our country and the stability of our Government mainly depend not upon them, but on the loyalty, virtue, patriotism, and intelligence of the American people. The correspondence itself, with the usual reservations, is herewith submitted. I venture to hope it will appear that we have practiced prudence and liberality toward foreign powers, averting causes of irritation and with firmness maintaining our own rights and honor. Since, however, it is apparent that here, as in every other state, foreign dangers necessarily attend domestic difficulties, I recommend that adequate and ample measures be adopted for maintaining the public defenses on every side. While under this general recommendation provision for defending our seacoast line readily occurs to the mind, I also in the same connection ask the attention of Congress to our great lakes and rivers. It is believed that some fortifications and depots of arms and munitions, with harbor and navigation improvements, all at well-selected points upon these, would be of great importance to the national defense and preservation. I ask attention to the views of the Secretary of War, expressed in his report, upon the same general subject. I deem it of importance that the loyal regions of east Tennessee and western North Carolina should be connected with Kentucky and other faithful parts of the Union by railroad. I therefore recommend, as a military measure, that Congress provide for the construction of such road as speedily as possible. Kentucky no doubt will cooperate, and through her legislature make the most judicious selection of a line. The northern terminus must connect with some existing railroad, and whether the route shall be from Lexington or Nicholasville to the Cumberland Gap, or from Lebanon to the Tennessee line, in the direction of Knoxville, or on some still different line, can easily be determined. Kentucky and the General Government cooperating, the work can be completed in a very short time, and when done it will be not only of vast present usefulness, but also a valuable permanent improvement, worth its cost in all the future. Some treaties, designed chiefly for the interests of commerce, and having no grave political importance, have been negotiated, and will be submitted to the Senate for their consideration. Although we have failed to induce some of the commercial powers to adopt a desirable melioration of the rigor of maritime war, we have removed all obstructions from the way of this humane reform except such as are merely of temporary and accidental occurrence. I invite your attention to the correspondence between Her Britannic Majesty's minister accredited to this Government and the Secretary of State relative to the detention of the British ship Perthshire in June last by the United States steamer Massachusetts for a supposed breach of the blockade. As this detention was occasioned by an obvious misapprehension of the facts, and as justice requires that we should commit no belligerent act not rounded in strict right as sanctioned by public law, I recommend that an appropriation be made to satisfy the reasonable demand of the owners of the vessel for her detention. I repeat the recommendation of my predecessor in his annual message to Congress in December last in regard to the disposition of the surplus which will probably remain after satisfying the claims of American citizens against China, pursuant to the awards of the commissioners under the act of the 3d of March, 1859. If, however, it should not be deemed advisable to carry that recommendation into effect, I would suggest that authority be given for investing the principal, over the proceeds of the surplus referred to, in good securities, with a view to the satisfaction of such other just claims of our citizens against China as are not unlikely to arise hereafter in the course of our extensive trade with that Empire. By the act of the 5th of August last Congress authorized the President to instruct the commanders of suitable vessels to defend themselves against and to capture pirates. This authority has been exercised in a single instance only. For the more effectual protection of our extensive and valuable commerce in the Eastern seas especially, it seems to me that it would also be advisable to authorize the commanders of sailing vessels to recapture any prizes which pirates may make of United States vessels and their cargoes, and the consular courts now established by law in Eastern countries to adjudicate the cases in the event that this should not be objected to by the local authorities. If any good reason exists why we should persevere longer in withholding our recognition of the independence and sovereignty of Hayti and Liberia, I am unable to discern it. Unwilling, however, to inaugurate a novel policy in regard to them without the approbation of Congress, I submit for your consideration the expediency of an appropriation for maintaining a charge' d'affaires near each of those new States. It does not admit of doubt that important commercial advantages might be secured by favorable treaties with them. The operations of the Treasury during the period which has elapsed since your adjournment have been conducted with signal success. The patriotism of the people has placed at the disposal of the Government the large means demanded by the public exigencies. Much of the national loan has been taken by citizens of the industrial classes, whose confidence in their country's faith and zeal for their country's deliverance from present peril have induced them to contribute to the support of the Government the whole of their limited acquisitions. This fact imposes peculiar obligations to economy in disbursement and energy in action. The revenue from all sources, including loans, for the financial year ending on the 30th of June, 1861, was $86,835,900.27, and the expenditures for the same period, including payments on account of the public debt, were $84,578,834.47, leaving a balance in the Treasury on the 1st of July of 52,257,065.80. For the first quarter of the financial year ending on the 30th of September, 1861, the receipts from all sources, including the balance of the 1st of July, were $102,532,509.27, and the expenses $98,239,733.09, leaving a balance on the 1st of October, 1861, of $4,292,776.18. Estimates for the remaining three quarters of the year and for the financial year 1863, together with his views of ways and means for meeting the demands contemplated by them, will be submitted to Congress by the Secretary of the Treasury. It is gratifying to know that the expenditures made necessary by the rebellion are not beyond the resources of the loyal people, and to believe that the same patriotism which has thus far sustained the Government will continue to sustain it till peace and union shall again bless the land. I respectfully refer to the report of the Secretary of War for information respecting the numerical strength of the Army and for recommendations having in view an increase of its efficiency and the well-being of the various branches of the service intrusted to his care. It is gratifying to know that the patriotism of the people has proved equal to the occasion, and that the number of troops tendered greatly exceeds the force which Congress authorized me to call into the field. I refer with pleasure to those portions of his report which make allusion to the creditable degree of discipline already attained by our troops and to the excellent sanitary condition of the entire Army. The recommendation of the Secretary for an organization of the militia upon a uniform basis is a subject of vital importance to the future safety of the country, and is commended to the serious attention of Congress. The large addition to the Regular Army, in connection with the defection that has so considerably diminished the number of its officers, gives peculiar importance to his recommendation for increasing the corps of cadets to the greatest capacity of the Military Academy. By mere omission, I presume, Congress has failed to provide chaplains for hospitals occupied by volunteers. This subject was brought to my notice, and I was induced to draw up the form of a letter, one copy of which, properly addressed, has been delivered to each of the persons, and at the dates respectively named and stated in a schedule, containing also the form of the letter marked A, and herewith transmitted. These gentlemen, I understand, entered upon the duties designated at the times respectively stated in the schedule, and have labored faithfully therein ever since. I therefore recommend that they be compensated at the same rate as chaplains in the Army. I further suggest that general provision be made for chaplains to serve at hospitals, as well as with regiments. The report of the Secretary of the Navy presents in detail the operations of that branch of the service, the activity and energy which have characterized its administration, and the results of measures to increase its efficiency and power. Such have been the additions, by construction and purchase, that it may almost be said a navy has been created and brought into service since our difficulties commenced. Besides blockading our extensive coast, squadrons larger than ever before assembled under our flag have been put afloat and performed deeds which have increased our naval renown. I would invite special attention to the recommendation of the Secretary for a more perfect organization of the Navy by introducing additional grades in the service. The present organization is defective and unsatisfactory, and the suggestions submitted by the Department will, it is believed, if adopted, obviate the difficulties alluded to, promote harmony, and increase the efficiency of the Navy. There are three vacancies on the bench of the Supreme Court--two by the decease of Justices Daniel and McLean and one by the resignation of Justice Campbell. I have so far forborne making nominations to fill these vacancies for reasons which I will now state. Two of the outgoing judges resided within the States now overrun by revolt, so that if successors were appointed in the same localities they could not now serve upon their circuits; and many of the most competent men there probably would not take the personal hazard of accepting to serve, even here, upon the Supreme bench. I have been unwilling to throw all the appointments northward, thus disabling myself from doing justice to the South on the return of peace; although I may remark that to transfer to the North one which has heretofore been in the South would not, with reference to territory and population, be unjust. During the long and brilliant judicial career of Judge McLean his circuit grew into an empire altogether too large for any one judge to give the courts therein more than a nominal attendance--rising in population from 1,470,018 in 1830 to 6,151,405 in 1860. Besides this, the country generally has outgrown our present judicial system. If uniformity was at all intended, the system requires that all the States shall be accommodated with circuit courts, attended by Supreme judges, while, in fact, Wisconsin, Minnesota, Iowa, Kansas, Florida, Texas, California, and Oregon have never had any such courts. Nor can this well be remedied without a change in the system, because the adding of judges to the Supreme Court, enough for the accommodation of all parts of the country with circuit courts, would create a court altogether too numerous for a judicial body of any sort. And the evil, if it be one, will increase as new States come into the Union. Circuit courts are useful or they are not useful. If useful, no State should be denied them; if not useful, no State should have them. Let them be provided for all or abolished as to all. Three modifications occur to me, either of which, I think, would be an improvement upon our present system. Let the Supreme Court be of convenient number in every event; then, first, let the whole country be divided into circuits of convenient size, the Supreme judges to serve in a number of them corresponding to their own number, and independent circuit judges be provided for all the rest; or, secondly, let the Supreme judges be relieved from circuit duties and circuit judges provided for all the circuits; or, thirdly, dispense with circuit courts altogether, leaving the judicial functions wholly to the district courts and an independent Supreme Court. I respectfully recommend to the consideration of Congress the present condition of the statute laws, with the hope that Congress will be able to find an easy remedy for many of the inconveniences and evils which constantly embarrass those engaged in the practical administration of them. Since the organization of the Government Congress has enacted some 5,000 acts and joint resolutions, which fill more than 6,000 closely printed pages and are scattered through many volumes. Many of these acts have been drawn in haste and without sufficient caution, so that their provisions are often obscure in themselves or in conflict with each other, or at least so doubtful as to render it very difficult for even the best-informed persons to ascertain precisely what the statute law really is. It seems to me very important that the statute laws should be made as plain and intelligible as possible, and be reduced to as small a compass as may consist with the fullness and precision of the will of the Legislature and the perspicuity of its language. This well done would, I think, greatly facilitate the labors of those whose duty it is to assist in the administration of the laws, and would be a lasting benefit to the people, by placing before them in a more accessible and intelligible form the laws which so deeply concern their interests and their duties. I am informed by some whose opinions I respect that all the acts of Congress now in force and of a permanent and general nature might be revised and rewritten so as to be embraced in one volume (or at most two volumes) of ordinary and convenient size; and I respectfully recommend to Congress to consider of the subject, and if my suggestion be approved to devise such plan as to their wisdom shall seem most proper for the attainment of the end proposed. One of the unavoidable consequences of the present insurrection is the entire suppression in many places of all the ordinary means of administering civil justice by the officers and in the forms of existing law. This is the case, in whole or in part, in all the insurgent States; and as our armies advance upon and take possession of parts of those States the practical evil becomes more apparent. There are no courts nor officers to whom the citizens of other States may apply for the enforcement of their lawful claims against citizens of the insurgent States, and there is a vast amount of debt constituting such claims. Some have estimated it as high as $200,000,000, due in large part from insurgents in open rebellion to loyal citizens who are even now making great sacrifices in the discharge of their patriotic duty to support the Government. Under these circumstances I have been urgently solicited to establish by military power courts to administer summary justice in such cases I have thus far declined to do it, not because I had any doubt that the end proposed--the collection of the debts--was just and right in itself, but because I have been unwilling to go beyond the pressure of necessity in the unusual exercise of power. But the powers of Congress, I suppose, are equal to the anomalous occasion, and therefore I refer the whole matter to Congress, with the hope that a plan may be devised for the administration of justice in all such parts of the insurgent States and Territories as may be under the control of this Government, whether by a voluntary return to allegiance and order or by the power of our arms; this, however, not to be a permanent institution, but a temporary substitute, and to cease as soon as the ordinary courts can be reestablished in peace. It is important that some more convenient means should be provided, if possible, for the adjustment of claims against the Government, especially in view of their increased number by reason of the war. It is as much the duty of Government to render prompt justice against itself in favor of citizens as it is to administer the same between private individuals. The investigation and adjudication of claims in their nature belong to the judicial department. Besides, it is apparent that the attention of Congress will be more than usually engaged for some time to come with great national questions. It was intended by the organization of the Court of Claims mainly to remove this branch of business from the halls of Congress: but while the court has proved to be an effective and valuable means of investigation, it in great degree fails to effect the object of its creation for want of power to make its judgments final. Fully aware of the delicacy, not to say the danger, of the subject, I commend to your careful consideration whether this power of making judgments final may not properly be given to the court, reserving the right of appeal on questions of law to the Supreme Court, with such other provisions as experience may have shown to be necessary. I ask attention to the report of the Postmaster-General, the following being a summary statement of the condition of the Department: The revenue from all sources during the fiscal year ending June 30, 1861, including the annual permanent appropriation of $700,000 for the transportation of "free mail matter," was $9,049,296.40, being about 2 per cent less than the revenue for 1860. The expenditures were $13,606,759.11, showing a decrease of more than 8 per cent as compared with those of the previous year and leaving an excess of expenditure over the revenue for the last fiscal year of $4,557,462.71. The gross revenue for the year ending June 30, 1863, is estimated at an increase of 4 per cent on that of 1861, making $8,683,000, to which should be added the earnings of the Department in carrying free matter, viz, $700,000, making $9,383,000. The total expenditures for 1863 are estimated at $12,528,000, leaving an estimated deficiency of $3,145,000 to be supplied from the Treasury in addition to the permanent appropriation. The present insurrection shows, I think, that the extension of this District across the Potomac River at the time of establishing the capital here was eminently wise, and consequently that the relinquishment of that portion of it which lies within the State of Virginia was unwise and dangerous. I submit for your consideration the expediency of regaining that part of the District and the restoration of the original boundaries thereof through negotiations with the State of Virginia. The report of the Secretary of the Interior, with the accompanying documents, exhibits the condition of the several branches of the public business pertaining to that Department. The depressing influences of the insurrection have been specially felt in the operations of the Patent and General Land Offices. The cash receipts from the sales of public lands during the past year have exceeded the expenses of our land system only about $200,000. The sales have been entirely suspended in the Southern States, while the interruptions to the business of the country and the diversion of large numbers of men from labor to military service have obstructed settlements in the new States and Territories of the Northwest. The receipts of the Patent Office have declined in nine months about $100,000, rendering a large reduction of the force employed necessary to make it self-sustaining. The demands upon the Pension Office will be largely increased by the insurrection. Numerous applications for pensions, based upon the casualties of the existing war, have already been made. There is reason to believe that many who are now upon the pension rolls and in receipt of the bounty of the Government are in the ranks of the insurgent army or giving them aid and comfort. The Secretary of the Interior has directed a suspension of the payment of the pensions of such persons upon proof of their disloyalty. I recommend that Congress authorize that officer to cause the names of such persons to be stricken from the pension rolls. The relations of the Government with the Indian tribes have been greatly disturbed by the insurrection, especially in the southern superintendency and in that of New Mexico. The Indian country south of Kansas is in the possession of insurgents from Texas and Arkansas. The agents of the United States appointed since the 4th of March for this superintendency have been unable to reach their posts, while the most of those who were in office before that time have espoused the insurrectionary cause, and assume to exercise the powers of agents by virtue of commissions from the insurrectionists. It has been stated in the public press that a portion of those Indians have been organized as a military force and are attached to the army of the insurgents. Although the Government has no official information upon this subject, letters have been written to the Commissioner of Indian Affairs by several prominent chiefs giving assurance of their loyalty to the United States and expressing a wish for the presence of Federal troops to protect them. It is believed that upon the repossession of the country by the Federal forces the Indians will readily cease all hostile demonstrations and resume their former relations to the Government. Agriculture, confessedly the largest interest of the nation, has not a department nor a bureau, but a clerkship only, assigned to it in the Government. While it is fortunate that this great interest is so independent in its nature as to not have demanded and extorted more from the Government, I respectfully ask Congress to consider whether something more can not be given voluntarily with general advantage. Annual reports exhibiting the condition of our agriculture, commerce, and manufactures would present a fund of information of great practical value to the country. While I make no suggestion as to details, I venture the opinion that an agricultural and statistical bureau might profitably be organized. The execution of the laws for the suppression of the African slave trade has been confided to the Department of the Interior. It is a subject of gratulation that the efforts which have been made for the suppression of this inhuman traffic have been recently attended with unusual success. Five vessels being fitted out for the slave trade have been seized and condemned. Two mates of vessels engaged in the trade and one person in equipping a vessel as a slaver have been convicted and subjected to the penalty of fine and imprisonment, and one captain, taken with a cargo of Africans on board his vessel, has been convicted of the highest grade of offense under our laws, the punishment of which is death. The Territories of Colorado, Dakota, and Nevada, created by the last Congress, have been organized, and civil administration has been inaugurated therein under auspices especially gratifying when it is considered that the leaven of treason was found existing in some of these new countries when the Federal officers arrived there. The abundant natural resources of these Territories, with the security and protection afforded by organized government, will doubtless invite to them a large immigration when peace shall restore the business of the country to its accustomed channels. I submit the resolutions of the legislature of Colorado, which evidence the patriotic spirit of the people of the Territory. So far the authority of the United States has been upheld in all the Territories, as it is hoped it will be in the future. I commend their interests and defense to the enlightened and generous care of Congress. I recommend to the favorable consideration of Congress the interests of the District of Columbia. The insurrection has been the cause of much suffering and sacrifice to its inhabitants, and as they have no representative in Congress that body should not overlook their just claims upon the Government. At your late session a joint resolution was adopted authorizing the President to take measures for facilitating a proper representation of the industrial interests of the United States at the exhibition of the industry of all nations to be holden at London in the year 1862. I regret to say I have been unable to give personal attention to this subject--a subject at once so interesting in itself and so extensively and intimately connected with the material prosperity of the world. Through the Secretaries of State and of the Interior a plan or system has been devised and partly matured, and which will be laid before you. Under and by virtue of the act of Congress entitled "An act to confiscate property used for insurrectionary purposes," approved August 6, 1861, the legal claims of certain persons to the labor and service of certain other persons have become forfeited, and numbers of the latter thus liberated are already dependent on the United States and must be provided for in some way. Besides this, it is not impossible that some of the States will pass similar enactments for their own benefit respectively, and by operation of which persons of the same class will be thrown upon them for disposal. In such case I recommend that Congress provide for accepting such persons from such States, according to some mode of valuation, in lieu, pro tanto, of direct taxes, or upon some other plan to be agreed on with such States respectively; that such persons, on such acceptance by the General Government, be at once deemed free, and that in any event steps be taken for colonizing both classes (or the one first mentioned if the other shall not be brought into existence) at some place or places in a climate congenial to them. It might be well to consider, too, whether the free colored people already in the United States could not, so far as individuals may desire, be included in such colonization. To carry out the plan of colonization may involve the acquiring of territory, and also the appropriation of money beyond that to be expended in the territorial acquisition. Having practiced the acquisition of territory for nearly sixty years, the question of constitutional power to do so is no longer an open one with us. The power was questioned at first by Mr. Jefferson, who, however, in the purchase of Louisiana, yielded his scruples on the plea of great expediency. If it be said that the only legitimate object of acquiring territory is to furnish homes for white men, this measure effects that object, for the emigration of colored men leaves additional room for white men remaining or coming here. Mr. Jefferson, however, placed the importance of procuring Louisiana more on political and commercial grounds than on providing room for population. On this whole proposition, including the appropriation of money with the acquisition of territory, does not the expediency amount to absolute necessity--that without which the Government itself can not be perpetuated ? The war continues. In considering the policy to be adopted for suppressing the insurrection I have been anxious and careful that the inevitable conflict for this purpose shall not degenerate into a violent and remorseless revolutionary struggle. I have therefore in every case thought it proper to keep the integrity of the Union prominent as the primary object of the contest on our part, leaving all questions which are not of vital military importance to the more deliberate action of the Legislature. In the exercise of my best discretion I have adhered to the blockade of the ports held by the insurgents, instead of putting in force by proclamation the law of Congress enacted at the late session for closing those ports. So also, obeying the dictates of prudence, as well as the obligations of law, instead of transcending I have adhered to the act of Congress to confiscate property used for insurrectionary purposes. If a new law upon the same subject shall be proposed, its propriety will be duly considered. The Union must be preserved, and hence all indispensable means must be employed. We should not be in haste to determine that radical and extreme measures, which may reach the loyal as well as the disloyal, are indispensable. The inaugural address at the beginning of the Administration and the message to Congress at the late special session were both mainly devoted to the domestic controversy out of which the insurrection and consequent war have sprung. Nothing now occurs to add or subtract to or from the principles or general purposes stated and expressed in those documents. The last ray of hope for preserving the Union peaceably expired at the assault upon Fort Sumter, and a general review of what has occurred since may not be unprofitable. What was painfully uncertain then is much better defined and more distinct now, and the progress of events is plainly in the right direction. The insurgents confidently claimed a strong support from north of Mason and Dixon's line, and the friends of the Union were not free from apprehension on the point. This, however, was soon settled definitely, and on the right side. South of the line noble little Delaware led off right from the first. Maryland was made to seem against the Union. Our soldiers were assaulted, bridges were burned, and railroads torn up within her limits, and we were many days at one time without the ability to bring a single regiment over her soil to the capital. Now her bridges and railroads are repaired and open to the Government; she already gives seven regiments to the cause of the Union, and none to the enemy; and her people, at a regular election, have sustained the Union by a larger majority and a larger aggregate vote than they ever before gave to any candidate or any question. Kentucky, too, for some time in doubt, is now decidedly and, I think, unchangeably ranged on the side of the Union. Missouri is comparatively quiet, and, I believe, can not again be overrun by the insurrectionists. These three States of Maryland, Kentucky, and Missouri, neither of which would promise a single soldier at first, have now an aggregate of not less than 40,000 in the field for the Union, while of their citizens certainly not more than a third of that number, and they of doubtful whereabouts and doubtful existence, are in arms against us. After a somewhat bloody struggle of months, winter closes on the Union people of western Virginia, leaving them masters of their own country. An insurgent force of about 1,500, for months dominating the narrow peninsular region constituting the counties of Accomac and Northampton, and known as Eastern Shore of Virginia, together with some contiguous parts of Maryland, have laid down their arms, and the people there have renewed their allegiance to and accepted the protection of the old flag. This leaves no armed insurrectionist north of the Potomac or east of the Chesapeake. Also we have obtained a footing at each of the isolated points on the southern coast of Hatteras, Port Royal, Tybee Island (near Savannah), and Ship Island; and we likewise have some general accounts of popular movements in behalf of the Union in North Carolina and Tennessee. These things demonstrate that the cause of the Union is advancing steadily and certainly southward. Since your last adjournment Lieutenant-General Scott has retired from the head of the Army. During his long life the nation has not been unmindful of his merit; yet on calling to mind how faithfully, ably, and brilliantly he has served the country, from a time far back in our history, when few of the now living had been born, and thenceforward continually, I can not but think we are still his debtors. I submit, therefore, for your consideration what further mark of recognition is due to him, and to ourselves as a grateful people. With the retirement of General Scott came the Executive duty of appointing in his stead a General in Chief of the Army. It is a fortunate circumstance that neither in council nor country was there, so far as I know, any difference of opinion as to the proper person to be selected. The retiring chief repeatedly expressed his judgment in favor of General McClellan for the position, and in this the nation seemed to give a unanimous concurrence. The designation of General McClellan is therefore in considerable degree the selection of the country as well as of the Executive, and hence there is better reason to hope there will be given him the confidence and cordial support thus by fair implication promised, and without which he can not with so full efficiency serve the country. It has been said that one bad general is better than two good ones, and the saying is true if taken to mean no more than that an army is better directed by a single mind, though inferior, than by two superior ones at variance and cross-purposes with each other. And the same is true in all joint operations wherein those engaged can have none but a common end in view and can differ only as to the choice of means. In a storm at sea no one on board can wish the ship to sink, and yet not unfrequently all go down together because too many will direct and no single mind can be allowed to control. It continues to develop that the insurrection is largely, if not exclusively, a war upon the first principle of popular government--the rights of the people. Conclusive evidence of this is found in the most grave and maturely considered public documents, as well as in the general tone of the insurgents. In those documents we find the abridgment of the existing right of suffrage and the denial to the people of all right to participate in the selection of public officers except the legislative boldly advocated, with labored arguments to prove that large control of the people in government is the source of all political evil. Monarchy itself is sometimes hinted at as a possible refuge from the power of the people. In my present position I could scarcely be justified were I to omit raising a warning voice against this approach of returning despotism. It is not needed nor fitting here that a general argument should be made in favor of popular institutions, but there is one point, with its connections, not so hackneyed as most others, to which I ask a brief attention. It is the effort to place capital on an equal footing with, if not above, labor in the structure of government. It is assumed that labor is available only in connection with capital; that nobody labors unless somebody else, owning capital, somehow by the use of it induces him to labor. This assumed, it is next considered whether it is best that capital shall hire laborers, and thus induce them to work by their own consent, or buy them and drive them to it without their consent. Having proceeded so far, it is naturally concluded that all laborers are either hired laborers or what we call slaves. And further, it is assumed that whoever is once a hired laborer is fixed in that condition for life. Now there is no such relation between capital and labor as assumed, nor is there any such thing as a free man being fixed for life in the condition of a hired laborer. Both these assumptions are false, and all inferences from them are groundless. Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. Capital has its rights, which are as worthy of protection as any other rights. Nor is it denied that there is, and probably always will be, a relation between labor and capital producing mutual benefits. The error is in assuming that the whole labor of community exists within that relation. A few men own capital, and that few avoid labor themselves, and with their capital hire or buy another few to labor for them. A large majority belong to neither class--neither work for others nor have others working for them. In most of the Southern States a majority of the whole people of all colors are neither slaves nor masters, while in the Northern a large majority are neither hirers nor hired. Men, with their families--wives, sons, and daughters--work for themselves on their farms, in their houses, and in their shops, taking the whole product to themselves, and asking no favors of capital on the one hand nor of hired laborers or slaves on the other. It is not forgotten that a considerable number of persons mingle their own labor with capital; that is, they labor with their own hands and also buy or hire others to labor for them; but this is only a mixed and not a distinct class. No principle stated is disturbed by the existence of this mixed class. Again, as has already been said, there is not of necessity any such thing as the free hired laborer being fixed to that condition for life. Many independent men everywhere in these States a few years back in their lives were hired laborers. The prudent, penniless beginner in the world labors for wages awhile, saves a surplus with which to buy tools or land for himself, then labors on his own account another while, and at length hires another new beginner to help him. This is the just and generous and prosperous system which opens the way to all, gives hope to all, and consequent energy and progress and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty; none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which if surrendered will surely be used to close the door of advancement against such as they and to fix new disabilities and burdens upon them till all of liberty shall be lost. From the first taking of our national census to the last are seventy years, and we find our population at the end of the period eight times as great as it was at the beginning. The increase of those other things which men deem desirable has been even greater. We thus have at one view what the popular principle, applied to Government through the machinery, of the States and the Union, has produced in a given time, and also what if firmly maintained it promises for the future. There are already among us those who if the Union be preserved will live to see it contain 250,000,000. The struggle of to-day is not altogether for to-day; it is for a vast future also. With a reliance on Providence all the more firm and earnest, let us proceed in the great task which events have devolved upon us.
In the midst of unprecedented political troubles we have because of great gratitude to God for unusual good health and most abundant harvests. You will not be surprised to learn that in the peculiar exigencies of the times our intercourse with foreign nations has been attended with profound solicitude, chiefly turning upon our own domestic affairs. A disloyal portion of the American people have during the whole year been engaged in an attempt to divide and destroy the Union. A nation which endures factious domestic division is exposed to disrespect abroad, and one party, if not both, is sure sooner or later to invoke foreign intervention. Nations thus tempted to interfere are not always able to resist the counsels of seeming expediency and ungenerous ambition, although measures adopted under such influences seldom fail to be unfortunate and injurious to those adopting them. The disloyal citizens of the United States who have offered the ruin of our country in return for the aid and comfort which they have invoked abroad have received less patronage and encouragement than they probably expected. If it were just to suppose, as the insurgents have seemed to assume, that foreign nations in this case, discarding all moral, social, and treaty obligations, would act solely and selfishly for the most speedy restoration of commerce, including especially the acquisition of cotton, those nations appear as yet not to have seen their way to their object more directly or clearly through the destruction than through the preservation of the Union. If we could dare to believe that foreign nations are actuated by no higher principle than this, I am quite sure a sound argument could be made to show them that they can reach their aim more readily and easily by aiding to crush this rebellion than by giving encouragement to it. The principal lever relied on by the insurgents for exciting foreign nations to hostility against us, as already intimated, is the embarrassment of commerce. Those nations, however, not improbably saw from the first that it was the Union which made as well our foreign as our domestic commerce. They can scarcely have failed to perceive that the effort for disunion produces the existing difficulty, and that one strong nation promises more durable peace and a more extensive, valuable, and reliable commerce than can the same nation broken into hostile fragments. It is not my purpose to review our discussions with foreign states, because, whatever might be their wishes or dispositions, the integrity of our country and the stability of our Government mainly depend not upon them, but on the loyalty, virtue, patriotism, and intelligence of the American people. The correspondence itself, with the usual reservations, is herewith submitted. I venture to hope it will appear that we have practiced prudence and liberality toward foreign powers, averting causes of irritation and with firmness maintaining our own rights and honor. Since, however, it is apparent that here, as in every other state, foreign dangers necessarily attend domestic difficulties, I recommend that adequate and ample measures be adopted for maintaining the public defenses on every side. While under this general recommendation provision for defending our seacoast line readily occurs to the mind, I also in the same connection ask the attention of Congress to our great lakes and rivers. It is believed that some fortifications and depots of arms and munitions, with harbor and navigation improvements, all at well-selected points upon these, would be of great importance to the national defense and preservation. I ask attention to the views of the Secretary of War, expressed in his report, upon the same general subject. I deem it of importance that the loyal regions of east Tennessee and western North Carolina should be connected with Kentucky and other faithful parts of the Union by railroad. I therefore recommend, as a military measure, that Congress provide for the construction of such road as speedily as possible. Kentucky no doubt will cooperate, and through her legislature make the most judicious selection of a line. The northern terminus must connect with some existing railroad, and whether the route shall be from Lexington or Nicholasville to the Cumberland Gap, or from Lebanon to the Tennessee line, in the direction of Knoxville, or on some still different line, can easily be determined. Kentucky and the General Government cooperating, the work can be completed in a very short time, and when done it will be not only of vast present usefulness, but also a valuable permanent improvement, worth its cost in all the future. Some treaties, designed chiefly for the interests of commerce, and having no grave political importance, have been negotiated, and will be submitted to the Senate for their consideration. Although we have failed to induce some of the commercial powers to adopt a desirable melioration of the rigor of maritime war, we have removed all obstructions from the way of this humane reform except such as are merely of temporary and accidental occurrence. I invite your attention to the correspondence between Her Britannic Majesty's minister accredited to this Government and the Secretary of State relative to the detention of the British ship Perthshire in June last by the United States steamer Massachusetts for a supposed breach of the blockade. As this detention was occasioned by an obvious misapprehension of the facts, and as justice requires that we should commit no belligerent act not rounded in strict right as sanctioned by public law, I recommend that an appropriation be made to satisfy the reasonable demand of the owners of the vessel for her detention. I repeat the recommendation of my predecessor in his annual message to Congress in December last in regard to the disposition of the surplus which will probably remain after satisfying the claims of American citizens against China, pursuant to the awards of the commissioners under the act of the 3d of March, 1859. If, however, it should not be deemed advisable to carry that recommendation into effect, I would suggest that authority be given for investing the principal, over the proceeds of the surplus referred to, in good securities, with a view to the satisfaction of such other just claims of our citizens against China as are not unlikely to arise hereafter in the course of our extensive trade with that Empire. By the act of the 5th of August last Congress authorized the President to instruct the commanders of suitable vessels to defend themselves against and to capture pirates. This authority has been exercised in a single instance only. For the more effectual protection of our extensive and valuable commerce in the Eastern seas especially, it seems to me that it would also be advisable to authorize the commanders of sailing vessels to recapture any prizes which pirates may make of United States vessels and their cargoes, and the consular courts now established by law in Eastern countries to adjudicate the cases in the event that this should not be objected to by the local authorities. If any good reason exists why we should persevere longer in withholding our recognition of the independence and sovereignty of Hayti and Liberia, I am unable to discern it. Unwilling, however, to inaugurate a novel policy in regard to them without the approbation of Congress, I submit for your consideration the expediency of an appropriation for maintaining a charge' d'affaires near each of those new States. It does not admit of doubt that important commercial advantages might be secured by favorable treaties with them. The operations of the Treasury during the period which has elapsed since your adjournment have been conducted with signal success. The patriotism of the people has placed at the disposal of the Government the large means demanded by the public exigencies. Much of the national loan has been taken by citizens of the industrial classes, whose confidence in their country's faith and zeal for their country's deliverance from present peril have induced them to contribute to the support of the Government the whole of their limited acquisitions. This fact imposes peculiar obligations to economy in disbursement and energy in action. The revenue from all sources, including loans, for the financial year ending on the 30th of June, 1861, was $86,835,900.27, and the expenditures for the same period, including payments on account of the public debt, were $84,578,834.47, leaving a balance in the Treasury on the 1st of July of 52,257,065.80. For the first quarter of the financial year ending on the 30th of September, 1861, the receipts from all sources, including the balance of the 1st of July, were $102,532,509.27, and the expenses $98,239,733.09, leaving a balance on the 1st of October, 1861, of $4,292,776.18. Estimates for the remaining three quarters of the year and for the financial year 1863, together with his views of ways and means for meeting the demands contemplated by them, will be submitted to Congress by the Secretary of the Treasury. It is gratifying to know that the expenditures made necessary by the rebellion are not beyond the resources of the loyal people, and to believe that the same patriotism which has thus far sustained the Government will continue to sustain it till peace and union shall again bless the land. I respectfully refer to the report of the Secretary of War for information respecting the numerical strength of the Army and for recommendations having in view an increase of its efficiency and the well-being of the various branches of the service intrusted to his care. It is gratifying to know that the patriotism of the people has proved equal to the occasion, and that the number of troops tendered greatly exceeds the force which Congress authorized me to call into the field. I refer with pleasure to those portions of his report which make allusion to the creditable degree of discipline already attained by our troops and to the excellent sanitary condition of the entire Army. The recommendation of the Secretary for an organization of the militia upon a uniform basis is a subject of vital importance to the future safety of the country, and is commended to the serious attention of Congress. The large addition to the Regular Army, in connection with the defection that has so considerably diminished the number of its officers, gives peculiar importance to his recommendation for increasing the corps of cadets to the greatest capacity of the Military Academy. By mere omission, I presume, Congress has failed to provide chaplains for hospitals occupied by volunteers. This subject was brought to my notice, and I was induced to draw up the form of a letter, one copy of which, properly addressed, has been delivered to each of the persons, and at the dates respectively named and stated in a schedule, containing also the form of the letter marked A, and herewith transmitted. These gentlemen, I understand, entered upon the duties designated at the times respectively stated in the schedule, and have labored faithfully therein ever since. I therefore recommend that they be compensated at the same rate as chaplains in the Army. I further suggest that general provision be made for chaplains to serve at hospitals, as well as with regiments. The report of the Secretary of the Navy presents in detail the operations of that branch of the service, the activity and energy which have characterized its administration, and the results of measures to increase its efficiency and power. Such have been the additions, by construction and purchase, that it may almost be said a navy has been created and brought into service since our difficulties commenced. Besides blockading our extensive coast, squadrons larger than ever before assembled under our flag have been put afloat and performed deeds which have increased our naval renown. I would invite special attention to the recommendation of the Secretary for a more perfect organization of the Navy by introducing additional grades in the service. The present organization is defective and unsatisfactory, and the suggestions submitted by the Department will, it is believed, if adopted, obviate the difficulties alluded to, promote harmony, and increase the efficiency of the Navy. There are three vacancies on the bench of the Supreme Court--two by the decease of Justices Daniel and McLean and one by the resignation of Justice Campbell. I have so far forborne making nominations to fill these vacancies for reasons which I will now state. Two of the outgoing judges resided within the States now overrun by revolt, so that if successors were appointed in the same localities they could not now serve upon their circuits; and many of the most competent men there probably would not take the personal hazard of accepting to serve, even here, upon the Supreme bench. I have been unwilling to throw all the appointments northward, thus disabling myself from doing justice to the South on the return of peace; although I may remark that to transfer to the North one which has heretofore been in the South would not, with reference to territory and population, be unjust. During the long and brilliant judicial career of Judge McLean his circuit grew into an empire altogether too large for any one judge to give the courts therein more than a nominal attendance--rising in population from 1,470,018 in 1830 to 6,151,405 in 1860. Besides this, the country generally has outgrown our present judicial system. If uniformity was at all intended, the system requires that all the States shall be accommodated with circuit courts, attended by Supreme judges, while, in fact, Wisconsin, Minnesota, Iowa, Kansas, Florida, Texas, California, and Oregon have never had any such courts. Nor can this well be remedied without a change in the system, because the adding of judges to the Supreme Court, enough for the accommodation of all parts of the country with circuit courts, would create a court altogether too numerous for a judicial body of any sort. And the evil, if it be one, will increase as new States come into the Union. Circuit courts are useful or they are not useful. If useful, no State should be denied them; if not useful, no State should have them. Let them be provided for all or abolished as to all. Three modifications occur to me, either of which, I think, would be an improvement upon our present system. Let the Supreme Court be of convenient number in every event; then, first, let the whole country be divided into circuits of convenient size, the Supreme judges to serve in a number of them corresponding to their own number, and independent circuit judges be provided for all the rest; or, secondly, let the Supreme judges be relieved from circuit duties and circuit judges provided for all the circuits; or, thirdly, dispense with circuit courts altogether, leaving the judicial functions wholly to the district courts and an independent Supreme Court. I respectfully recommend to the consideration of Congress the present condition of the statute laws, with the hope that Congress will be able to find an easy remedy for many of the inconveniences and evils which constantly embarrass those engaged in the practical administration of them. Since the organization of the Government Congress has enacted some 5,000 acts and joint resolutions, which fill more than 6,000 closely printed pages and are scattered through many volumes. Many of these acts have been drawn in haste and without sufficient caution, so that their provisions are often obscure in themselves or in conflict with each other, or at least so doubtful as to render it very difficult for even the best-informed persons to ascertain precisely what the statute law really is. It seems to me very important that the statute laws should be made as plain and intelligible as possible, and be reduced to as small a compass as may consist with the fullness and precision of the will of the Legislature and the perspicuity of its language. This well done would, I think, greatly facilitate the labors of those whose duty it is to assist in the administration of the laws, and would be a lasting benefit to the people, by placing before them in a more accessible and intelligible form the laws which so deeply concern their interests and their duties. I am informed by some whose opinions I respect that all the acts of Congress now in force and of a permanent and general nature might be revised and rewritten so as to be embraced in one volume (or at most two volumes) of ordinary and convenient size; and I respectfully recommend to Congress to consider of the subject, and if my suggestion be approved to devise such plan as to their wisdom shall seem most proper for the attainment of the end proposed. One of the unavoidable consequences of the present insurrection is the entire suppression in many places of all the ordinary means of administering civil justice by the officers and in the forms of existing law. This is the case, in whole or in part, in all the insurgent States; and as our armies advance upon and take possession of parts of those States the practical evil becomes more apparent. There are no courts nor officers to whom the citizens of other States may apply for the enforcement of their lawful claims against citizens of the insurgent States, and there is a vast amount of debt constituting such claims. Some have estimated it as high as $200,000,000, due in large part from insurgents in open rebellion to loyal citizens who are even now making great sacrifices in the discharge of their patriotic duty to support the Government. Under these circumstances I have been urgently solicited to establish by military power courts to administer summary justice in such cases I have thus far declined to do it, not because I had any doubt that the end proposed--the collection of the debts--was just and right in itself, but because I have been unwilling to go beyond the pressure of necessity in the unusual exercise of power. But the powers of Congress, I suppose, are equal to the anomalous occasion, and therefore I refer the whole matter to Congress, with the hope that a plan may be devised for the administration of justice in all such parts of the insurgent States and Territories as may be under the control of this Government, whether by a voluntary return to allegiance and order or by the power of our arms; this, however, not to be a permanent institution, but a temporary substitute, and to cease as soon as the ordinary courts can be reestablished in peace. It is important that some more convenient means should be provided, if possible, for the adjustment of claims against the Government, especially in view of their increased number by reason of the war. It is as much the duty of Government to render prompt justice against itself in favor of citizens as it is to administer the same between private individuals. The investigation and adjudication of claims in their nature belong to the judicial department. Besides, it is apparent that the attention of Congress will be more than usually engaged for some time to come with great national questions. It was intended by the organization of the Court of Claims mainly to remove this branch of business from the halls of Congress: but while the court has proved to be an effective and valuable means of investigation, it in great degree fails to effect the object of its creation for want of power to make its judgments final. Fully aware of the delicacy, not to say the danger, of the subject, I commend to your careful consideration whether this power of making judgments final may not properly be given to the court, reserving the right of appeal on questions of law to the Supreme Court, with such other provisions as experience may have shown to be necessary. I ask attention to the report of the Postmaster-General, the following being a summary statement of the condition of the Department: The revenue from all sources during the fiscal year ending June 30, 1861, including the annual permanent appropriation of $700,000 for the transportation of "free mail matter," was $9,049,296.40, being about 2 per cent less than the revenue for 1860. The expenditures were $13,606,759.11, showing a decrease of more than 8 per cent as compared with those of the previous year and leaving an excess of expenditure over the revenue for the last fiscal year of $4,557,462.71. The gross revenue for the year ending June 30, 1863, is estimated at an increase of 4 per cent on that of 1861, making $8,683,000, to which should be added the earnings of the Department in carrying free matter, viz, $700,000, making $9,383,000. The total expenditures for 1863 are estimated at $12,528,000, leaving an estimated deficiency of $3,145,000 to be supplied from the Treasury in addition to the permanent appropriation. The present insurrection shows, I think, that the extension of this District across the Potomac River at the time of establishing the capital here was eminently wise, and consequently that the relinquishment of that portion of it which lies within the State of Virginia was unwise and dangerous. I submit for your consideration the expediency of regaining that part of the District and the restoration of the original boundaries thereof through negotiations with the State of Virginia. The report of the Secretary of the Interior, with the accompanying documents, exhibits the condition of the several branches of the public business pertaining to that Department. The depressing influences of the insurrection have been specially felt in the operations of the Patent and General Land Offices. The cash receipts from the sales of public lands during the past year have exceeded the expenses of our land system only about $200,000. The sales have been entirely suspended in the Southern States, while the interruptions to the business of the country and the diversion of large numbers of men from labor to military service have obstructed settlements in the new States and Territories of the Northwest. The receipts of the Patent Office have declined in nine months about $100,000, rendering a large reduction of the force employed necessary to make it self-sustaining. The demands upon the Pension Office will be largely increased by the insurrection. Numerous applications for pensions, based upon the casualties of the existing war, have already been made. There is reason to believe that many who are now upon the pension rolls and in receipt of the bounty of the Government are in the ranks of the insurgent army or giving them aid and comfort. The Secretary of the Interior has directed a suspension of the payment of the pensions of such persons upon proof of their disloyalty. I recommend that Congress authorize that officer to because the names of such persons to be stricken from the pension rolls. The relations of the Government with the Indian tribes have been greatly disturbed by the insurrection, especially in the southern superintendency and in that of New Mexico. The Indian country south of Kansas is in the possession of insurgents from Texas and Arkansas. The agents of the United States appointed since the 4th of March for this superintendency have been unable to reach their posts, while the most of those who were in office before that time have espoused the insurrectionary because, and assume to exercise the powers of agents by virtue of commissions from the insurrectionists. It has been stated in the public press that a portion of those Indians have been organized as a military force and are attached to the army of the insurgents. Although the Government has no official information upon this subject, letters have been written to the Commissioner of Indian Affairs by several prominent chiefs giving assurance of their loyalty to the United States and expressing a wish for the presence of Federal troops to protect them. It is believed that upon the repossession of the country by the Federal forces the Indians will readily cease all hostile demonstrations and resume their former relations to the Government. Agriculture, confessedly the largest interest of the nation, has not a department nor a bureau, but a clerkship only, assigned to it in the Government. While it is fortunate that this great interest is so independent in its nature as to not have demanded and extorted more from the Government, I respectfully ask Congress to consider whether something more can not be given voluntarily with general advantage. Annual reports exhibiting the condition of our agriculture, commerce, and manufactures would present a fund of information of great practical value to the country. While I make no suggestion as to details, I venture the opinion that an agricultural and statistical bureau might profitably be organized. The execution of the laws for the suppression of the African slave trade has been confided to the Department of the Interior. It is a subject of gratulation that the efforts which have been made for the suppression of this inhuman traffic have been recently attended with unusual success. Five vessels being fitted out for the slave trade have been seized and condemned. Two mates of vessels engaged in the trade and one person in equipping a vessel as a slaver have been convicted and subjected to the penalty of fine and imprisonment, and one captain, taken with a cargo of Africans on board his vessel, has been convicted of the highest grade of offense under our laws, the punishment of which is death. The Territories of Colorado, Dakota, and Nevada, created by the last Congress, have been organized, and civil administration has been inaugurated therein under auspices especially gratifying when it is considered that the leaven of treason was found existing in some of these new countries when the Federal officers arrived there. The abundant natural resources of these Territories, with the security and protection afforded by organized government, will doubtless invite to them a large immigration when peace shall restore the business of the country to its accustomed channels. I submit the resolutions of the legislature of Colorado, which evidence the patriotic spirit of the people of the Territory. So far the authority of the United States has been upheld in all the Territories, as it is hoped it will be in the future. I commend their interests and defense to the enlightened and generous care of Congress. I recommend to the favorable consideration of Congress the interests of the District of Columbia. The insurrection has been the because of much suffering and sacrifice to its inhabitants, and as they have no representative in Congress that body should not overlook their just claims upon the Government. At your late session a joint resolution was adopted authorizing the President to take measures for facilitating a proper representation of the industrial interests of the United States at the exhibition of the industry of all nations to be holden at London in the year 1862. I regret to say I have been unable to give personal attention to this subject--a subject at once so interesting in itself and so extensively and intimately connected with the material prosperity of the world. Through the Secretaries of State and of the Interior a plan or system has been devised and partly matured, and which will be laid before you. Under and by virtue of the act of Congress entitled "An act to confiscate property used for insurrectionary purposes," approved August 6, 1861, the legal claims of certain persons to the labor and service of certain other persons have become forfeited, and numbers of the latter thus liberated are already dependent on the United States and must be provided for in some way. Besides this, it is not impossible that some of the States will pass similar enactments for their own benefit respectively, and by operation of which persons of the same class will be thrown upon them for disposal. In such case I recommend that Congress provide for accepting such persons from such States, according to some mode of valuation, in lieu, pro tanto, of direct taxes, or upon some other plan to be agreed on with such States respectively; that such persons, on such acceptance by the General Government, be at once deemed free, and that in any event steps be taken for colonizing both classes (or the one first mentioned if the other shall not be brought into existence) at some place or places in a climate congenial to them. It might be well to consider, too, whether the free colored people already in the United States could not, so far as individuals may desire, be included in such colonization. To carry out the plan of colonization may involve the acquiring of territory, and also the appropriation of money beyond that to be expended in the territorial acquisition. Having practiced the acquisition of territory for nearly sixty years, the question of constitutional power to do so is no longer an open one with us. The power was questioned at first by Mr. Jefferson, who, however, in the purchase of Louisiana, yielded his scruples on the plea of great expediency. If it be said that the only legitimate object of acquiring territory is to furnish homes for white men, this measure effects that object, for the emigration of colored men leaves additional room for white men remaining or coming here. Mr. Jefferson, however, placed the importance of procuring Louisiana more on political and commercial grounds than on providing room for population. On this whole proposition, including the appropriation of money with the acquisition of territory, does not the expediency amount to absolute necessity--that without which the Government itself can not be perpetuated ? The war continues. In considering the policy to be adopted for suppressing the insurrection I have been anxious and careful that the inevitable conflict for this purpose shall not degenerate into a violent and remorseless revolutionary struggle. I have therefore in every case thought it proper to keep the integrity of the Union prominent as the primary object of the contest on our part, leaving all questions which are not of vital military importance to the more deliberate action of the Legislature. In the exercise of my best discretion I have adhered to the blockade of the ports held by the insurgents, instead of putting in force by proclamation the law of Congress enacted at the late session for closing those ports. So also, obeying the dictates of prudence, as well as the obligations of law, instead of transcending I have adhered to the act of Congress to confiscate property used for insurrectionary purposes. If a new law upon the same subject shall be proposed, its propriety will be duly considered. The Union must be preserved, and hence all indispensable means must be employed. We should not be in haste to determine that radical and extreme measures, which may reach the loyal as well as the disloyal, are indispensable. The inaugural address at the beginning of the Administration and the message to Congress at the late special session were both mainly devoted to the domestic controversy out of which the insurrection and consequent war have sprung. Nothing now occurs to add or subtract to or from the principles or general purposes stated and expressed in those documents. The last ray of hope for preserving the Union peaceably expired at the assault upon Fort Sumter, and a general review of what has occurred since may not be unprofitable. What was painfully uncertain then is much better defined and more distinct now, and the progress of events is plainly in the right direction. The insurgents confidently claimed a strong support from north of Mason and Dixon's line, and the friends of the Union were not free from apprehension on the point. This, however, was soon settled definitely, and on the right side. South of the line noble little Delaware led off right from the first. Maryland was made to seem against the Union. Our soldiers were assaulted, bridges were burned, and railroads torn up within her limits, and we were many days at one time without the ability to bring a single regiment over her soil to the capital. Now her bridges and railroads are repaired and open to the Government; she already gives seven regiments to the because of the Union, and none to the enemy; and her people, at a regular election, have sustained the Union by a larger majority and a larger aggregate vote than they ever before gave to any candidate or any question. Kentucky, too, for some time in doubt, is now decidedly and, I think, unchangeably ranged on the side of the Union. Missouri is comparatively quiet, and, I believe, can not again be overrun by the insurrectionists. These three States of Maryland, Kentucky, and Missouri, neither of which would promise a single soldier at first, have now an aggregate of not less than 40,000 in the field for the Union, while of their citizens certainly not more than a third of that number, and they of doubtful whereabouts and doubtful existence, are in arms against us. After a somewhat bloody struggle of months, winter closes on the Union people of western Virginia, leaving them masters of their own country. An insurgent force of about 1,500, for months dominating the narrow peninsular region constituting the counties of Accomac and Northampton, and known as Eastern Shore of Virginia, together with some contiguous parts of Maryland, have laid down their arms, and the people there have renewed their allegiance to and accepted the protection of the old flag. This leaves no armed insurrectionist north of the Potomac or east of the Chesapeake. Also we have obtained a footing at each of the isolated points on the southern coast of Hatteras, Port Royal, Tybee Island (near Savannah), and Ship Island; and we likewise have some general accounts of popular movements in behalf of the Union in North Carolina and Tennessee. These things demonstrate that the because of the Union is advancing steadily and certainly southward. Since your last adjournment Lieutenant-General Scott has retired from the head of the Army. During his long life the nation has not been unmindful of his merit; yet on calling to mind how faithfully, ably, and brilliantly he has served the country, from a time far back in our history, when few of the now living had been born, and thenceforward continually, I can not but think we are still his debtors. I submit, therefore, for your consideration what further mark of recognition is due to him, and to ourselves as a grateful people. With the retirement of General Scott came the Executive duty of appointing in his stead a General in Chief of the Army. It is a fortunate circumstance that neither in council nor country was there, so far as I know, any difference of opinion as to the proper person to be selected. The retiring chief repeatedly expressed his judgment in favor of General McClellan for the position, and in this the nation seemed to give a unanimous concurrence. The designation of General McClellan is therefore in considerable degree the selection of the country as well as of the Executive, and hence there is better reason to hope there will be given him the confidence and cordial support thus by fair implication promised, and without which he can not with so full efficiency serve the country. It has been said that one bad general is better than two good ones, and the saying is true if taken to mean no more than that an army is better directed by a single mind, though inferior, than by two superior ones at variance and cross-purposes with each other. And the same is true in all joint operations wherein those engaged can have none but a common end in view and can differ only as to the choice of means. In a storm at sea no one on board can wish the ship to sink, and yet not unfrequently all go down together because too many will direct and no single mind can be allowed to control. It continues to develop that the insurrection is largely, if not exclusively, a war upon the first principle of popular government--the rights of the people. Conclusive evidence of this is found in the most grave and maturely considered public documents, as well as in the general tone of the insurgents. In those documents we find the abridgment of the existing right of suffrage and the denial to the people of all right to participate in the selection of public officers except the legislative boldly advocated, with labored arguments to prove that large control of the people in government is the source of all political evil. Monarchy itself is sometimes hinted at as a possible refuge from the power of the people. In my present position I could scarcely be justified were I to omit raising a warning voice against this approach of returning despotism. It is not needed nor fitting here that a general argument should be made in favor of popular institutions, but there is one point, with its connections, not so hackneyed as most others, to which I ask a brief attention. It is the effort to place capital on an equal footing with, if not above, labor in the structure of government. It is assumed that labor is available only in connection with capital; that nobody labors unless somebody else, owning capital, somehow by the use of it induces him to labor. This assumed, it is next considered whether it is best that capital shall hire laborers, and thus induce them to work by their own consent, or buy them and drive them to it without their consent. Having proceeded so far, it is naturally concluded that all laborers are either hired laborers or what we call slaves. And further, it is assumed that whoever is once a hired laborer is fixed in that condition for life. Now there is no such relation between capital and labor as assumed, nor is there any such thing as a free man being fixed for life in the condition of a hired laborer. Both these assumptions are false, and all inferences from them are groundless. Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. Capital has its rights, which are as worthy of protection as any other rights. Nor is it denied that there is, and probably always will be, a relation between labor and capital producing mutual benefits. The error is in assuming that the whole labor of community exists within that relation. A few men own capital, and that few avoid labor themselves, and with their capital hire or buy another few to labor for them. A large majority belong to neither class--neither work for others nor have others working for them. In most of the Southern States a majority of the whole people of all colors are neither slaves nor masters, while in the Northern a large majority are neither hirers nor hired. Men, with their families--wives, sons, and daughters--work for themselves on their farms, in their houses, and in their shops, taking the whole product to themselves, and asking no favors of capital on the one hand nor of hired laborers or slaves on the other. It is not forgotten that a considerable number of persons mingle their own labor with capital; that is, they labor with their own hands and also buy or hire others to labor for them; but this is only a mixed and not a distinct class. No principle stated is disturbed by the existence of this mixed class. Again, as has already been said, there is not of necessity any such thing as the free hired laborer being fixed to that condition for life. Many independent men everywhere in these States a few years back in their lives were hired laborers. The prudent, penniless beginner in the world labors for wages awhile, saves a surplus with which to buy tools or land for himself, then labors on his own account another while, and at length hires another new beginner to help him. This is the just and generous and prosperous system which opens the way to all, gives hope to all, and consequent energy and progress and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty; none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which if surrendered will surely be used to close the door of advancement against such as they and to fix new disabilities and burdens upon them till all of liberty shall be lost. From the first taking of our national census to the last are seventy years, and we find our population at the end of the period eight times as great as it was at the beginning. The increase of those other things which men deem desirable has been even greater. We thus have at one view what the popular principle, applied to Government through the machinery, of the States and the Union, has produced in a given time, and also what if firmly maintained it promises for the future. There are already among us those who if the Union be preserved will live to see it contain 250,000,000. The struggle of to-day is not altogether for to-day; it is for a vast future also. With a reliance on Providence all the more firm and earnest, let us proceed in the great task which events have devolved upon us.
in the midst of unprecedented political troubles we have because of great gratitude to god for unusual good health and most abundant harvests you will not be surprised to learn that in the peculiar exigencies of the times our intercourse with foreign nations has been attended with profound solicitude chiefly turning upon our own domestic affairs a disloyal portion of the american people have during the whole year been engaged in an attempt to divide and destroy the union a nation which endures factious domestic division is exposed to disrespect abroad and one party if not both is sure sooner or later to invoke foreign intervention nations thus tempted to interfere are not always able to resist the counsels of seeming expediency and ungenerous ambition although measures adopted under such influences seldom fail to be unfortunate and injurious to those adopting them the disloyal citizens of the united states who have offered the ruin of our country in return for the aid and comfort which they have invoked abroad have received less patronage and encouragement than they probably expected if it were just to suppose as the insurgents have seemed to assume that foreign nations in this case discarding all moral social and treaty obligations would act solely and selfishly for the most speedy restoration of commerce including especially the acquisition of cotton those nations appear as yet not to have seen their way to their object more directly or clearly through the destruction than through the preservation of the union if we could dare to believe that foreign nations are actuated by no higher principle than this i am quite sure a sound argument could be made to show them that they can reach their aim more readily and easily by aiding to crush this rebellion than by giving encouragement to it the principal lever relied on by the insurgents for exciting foreign nations to hostility against us as already intimated is the embarrassment of commerce those nations however not improbably saw from the first that it was the union which made as well our foreign as our domestic commerce they can scarcely have failed to perceive that the effort for disunion produces the existing difficulty and that one strong nation promises more durable peace and a more extensive valuable and reliable commerce than can the same nation broken into hostile fragments it is not my purpose to review our discussions with foreign states because whatever might be their wishes or dispositions the integrity of our country and the stability of our government mainly depend not upon them but on the loyalty virtue patriotism and intelligence of the american people the correspondence itself with the usual reservations is herewith submitted i venture to hope it will appear that we have practiced prudence and liberality toward foreign powers averting causes of irritation and with firmness maintaining our own rights and honor since however it is apparent that here as in every other state foreign dangers necessarily attend domestic difficulties i recommend that adequate and ample measures be adopted for maintaining the public defenses on every side while under this general recommendation provision for defending our seacoast line readily occurs to the mind i also in the same connection ask the attention of congress to our great lakes and rivers it is believed that some fortifications and depots of arms and munitions with harbor and navigation improvements all at points upon these would be of great importance to the national defense and preservation i ask attention to the views of the secretary of war expressed in his report upon the same general subject i deem it of importance that the loyal regions of east tennessee and western north carolina should be connected with kentucky and other faithful parts of the union by railroad i therefore recommend as a military measure that congress provide for the construction of such road as speedily as possible kentucky no doubt will cooperate and through her legislature make the most judicious selection of a line the northern terminus must connect with some existing railroad and whether the route shall be from lexington or nicholasville to the cumberland gap or from lebanon to the tennessee line in the direction of knoxville or on some still different line can easily be determined kentucky and the general government cooperating the work can be completed in a very short time and when done it will be not only of vast present usefulness but also a valuable permanent improvement worth its cost in all the future some treaties designed chiefly for the interests of commerce and having no grave political importance have been negotiated and will be submitted to the senate for their consideration although we have failed to induce some of the commercial powers to adopt a desirable melioration of the rigor of maritime war we have removed all obstructions from the way of this humane reform except such as are merely of temporary and accidental occurrence i invite your attention to the correspondence between her britannic majesty minister accredited to this government and the secretary of state relative to the detention of the british ship perthshire in june last by the united states steamer massachusetts for a supposed breach of the blockade as this detention was occasioned by an obvious misapprehension of the facts and as justice requires that we should commit no belligerent act not rounded in strict right as sanctioned by public law i recommend that an appropriation be made to satisfy the reasonable demand of the owners of the vessel for her detention i repeat the recommendation of my predecessor in his annual message to congress in december last in regard to the disposition of the surplus which will probably remain after satisfying the claims of american citizens against china pursuant to the awards of the commissioners under the act of the 3d of march 1859 if however it should not be deemed advisable to carry that recommendation into effect i would suggest that authority be given for investing the principal over the proceeds of the surplus referred to in good securities with a view to the satisfaction of such other just claims of our citizens against china as are not unlikely to arise hereafter in the course of our extensive trade with that empire by the act of the 5th of august last congress authorized the president to instruct the commanders of suitable vessels to defend themselves against and to capture pirates this authority has been exercised in a single instance only for the more effectual protection of our extensive and valuable commerce in the eastern seas especially it seems to me that it would also be advisable to authorize the commanders of sailing vessels to recapture any prizes which pirates may make of united states vessels and their cargoes and the consular courts now established by law in eastern countries to adjudicate the cases in the event that this should not be objected to by the local authorities if any good reason exists why we should persevere longer in withholding our recognition of the independence and sovereignty of hayti and liberia i am unable to discern it unwilling however to inaugurate a novel policy in regard to them without the approbation of congress i submit for your consideration the expediency of an appropriation for maintaining a charge near each of those new states it does not admit of doubt that important commercial advantages might be secured by favorable treaties with them the operations of the treasury during the period which has elapsed since your adjournment have been conducted with signal success the patriotism of the people has placed at the disposal of the government the large means demanded by the public exigencies much of the national loan has been taken by citizens of the industrial classes whose confidence in their country faith and zeal for their country deliverance from present peril have induced them to contribute to the support of the government the whole of their limited acquisitions this fact imposes peculiar obligations to economy in disbursement and energy in action the revenue from all sources including loans for the financial year ending on the 30th of june 1861 was and the expenditures for the same period including payments on account of the public debt were leaving a balance in the treasury on the 1st of july of for the first quarter of the financial year ending on the 30th of september 1861 the receipts from all sources including the balance of the 1st of july were and the expenses leaving a balance on the 1st of october 1861 of estimates for the remaining three quarters of the year and for the financial year 1863 together with his views of ways and means for meeting the demands contemplated by them will be submitted to congress by the secretary of the treasury it is gratifying to know that the expenditures made necessary by the rebellion are not beyond the resources of the loyal people and to believe that the same patriotism which has thus far sustained the government will continue to sustain it till peace and union shall again bless the land i respectfully refer to the report of the secretary of war for information respecting the numerical strength of the army and for recommendations having in view an increase of its efficiency and the of the various branches of the service intrusted to his care it is gratifying to know that the patriotism of the people has proved equal to the occasion and that the number of troops tendered greatly exceeds the force which congress authorized me to call into the field i refer with pleasure to those portions of his report which make allusion to the creditable degree of discipline already attained by our troops and to the excellent sanitary condition of the entire army the recommendation of the secretary for an organization of the militia upon a uniform basis is a subject of vital importance to the future safety of the country and is commended to the serious attention of congress the large addition to the regular army in connection with the defection that has so considerably diminished the number of its officers gives peculiar importance to his recommendation for increasing the corps of cadets to the greatest capacity of the military academy by mere omission i presume congress has failed to provide chaplains for hospitals occupied by volunteers this subject was brought to my notice and i was induced to draw up the form of a letter one copy of which properly addressed has been delivered to each of the persons and at the dates respectively named and stated in a schedule containing also the form of the letter marked a and herewith transmitted these gentlemen i understand entered upon the duties designated at the times respectively stated in the schedule and have labored faithfully therein ever since i therefore recommend that they be compensated at the same rate as chaplains in the army i further suggest that general provision be made for chaplains to serve at hospitals as well as with regiments the report of the secretary of the navy presents in detail the operations of that branch of the service the activity and energy which have characterized its administration and the results of measures to increase its efficiency and power such have been the additions by construction and purchase that it may almost be said a navy has been created and brought into service since our difficulties commenced besides blockading our extensive coast squadrons larger than ever before assembled under our flag have been put afloat and performed deeds which have increased our naval renown i would invite special attention to the recommendation of the secretary for a more perfect organization of the navy by introducing additional grades in the service the present organization is defective and unsatisfactory and the suggestions submitted by the department will it is believed if adopted obviate the difficulties alluded to promote harmony and increase the efficiency of the navy there are three vacancies on the bench of the supreme court two by the decease of justices daniel and mclean and one by the resignation of justice campbell i have so far forborne making nominations to fill these vacancies for reasons which i will now state two of the outgoing judges resided within the states now overrun by revolt so that if successors were appointed in the same localities they could not now serve upon their circuits and many of the most competent men there probably would not take the personal hazard of accepting to serve even here upon the supreme bench i have been unwilling to throw all the appointments northward thus disabling myself from doing justice to the south on the return of peace although i may remark that to transfer to the north one which has heretofore been in the south would not with reference to territory and population be unjust during the long and brilliant judicial career of judge mclean his circuit grew into an empire altogether too large for any one judge to give the courts therein more than a nominal attendance rising in population from in 1830 to in 1860 besides this the country generally has outgrown our present judicial system if uniformity was at all intended the system requires that all the states shall be accommodated with circuit courts attended by supreme judges while in fact wisconsin minnesota iowa kansas florida texas california and oregon have never had any such courts nor can this well be remedied without a change in the system because the adding of judges to the supreme court enough for the accommodation of all parts of the country with circuit courts would create a court altogether too numerous for a judicial body of any sort and the evil if it be one will increase as new states come into the union circuit courts are useful or they are not useful if useful no state should be denied them if not useful no state should have them let them be provided for all or abolished as to all three modifications occur to me either of which i think would be an improvement upon our present system let the supreme court be of convenient number in every event then first let the whole country be divided into circuits of convenient size the supreme judges to serve in a number of them corresponding to their own number and independent circuit judges be provided for all the rest or secondly let the supreme judges be relieved from circuit duties and circuit judges provided for all the circuits or thirdly dispense with circuit courts altogether leaving the judicial functions wholly to the district courts and an independent supreme court i respectfully recommend to the consideration of congress the present condition of the statute laws with the hope that congress will be able to find an easy remedy for many of the inconveniences and evils which constantly embarrass those engaged in the practical administration of them since the organization of the government congress has enacted some acts and joint resolutions which fill more than closely printed pages and are scattered through many volumes many of these acts have been drawn in haste and without sufficient caution so that their provisions are often obscure in themselves or in conflict with each other or at least so doubtful as to render it very difficult for even the persons to ascertain precisely what the statute law really is it seems to me very important that the statute laws should be made as plain and intelligible as possible and be reduced to as small a compass as may consist with the fullness and precision of the will of the legislature and the perspicuity of its language this well done would i think greatly facilitate the labors of those whose duty it is to assist in the administration of the laws and would be a lasting benefit to the people by placing before them in a more accessible and intelligible form the laws which so deeply concern their interests and their duties i am informed by some whose opinions i respect that all the acts of congress now in force and of a permanent and general nature might be revised and rewritten so as to be embraced in one volume or at most two volumes of ordinary and convenient size and i respectfully recommend to congress to consider of the subject and if my suggestion be approved to devise such plan as to their wisdom shall seem most proper for the attainment of the end proposed one of the unavoidable consequences of the present insurrection is the entire suppression in many places of all the ordinary means of administering civil justice by the officers and in the forms of existing law this is the case in whole or in part in all the insurgent states and as our armies advance upon and take possession of parts of those states the practical evil becomes more apparent there are no courts nor officers to whom the citizens of other states may apply for the enforcement of their lawful claims against citizens of the insurgent states and there is a vast amount of debt constituting such claims some have estimated it as high as due in large part from insurgents in open rebellion to loyal citizens who are even now making great sacrifices in the discharge of their patriotic duty to support the government under these circumstances i have been urgently solicited to establish by military power courts to administer summary justice in such cases i have thus far declined to do it not because i had any doubt that the end proposed the collection of the debts was just and right in itself but because i have been unwilling to go beyond the pressure of necessity in the unusual exercise of power but the powers of congress i suppose are equal to the anomalous occasion and therefore i refer the whole matter to congress with the hope that a plan may be devised for the administration of justice in all such parts of the insurgent states and territories as may be under the control of this government whether by a voluntary return to allegiance and order or by the power of our arms this however not to be a permanent institution but a temporary substitute and to cease as soon as the ordinary courts can be reestablished in peace it is important that some more convenient means should be provided if possible for the adjustment of claims against the government especially in view of their increased number by reason of the war it is as much the duty of government to render prompt justice against itself in favor of citizens as it is to administer the same between private individuals the investigation and adjudication of claims in their nature belong to the judicial department besides it is apparent that the attention of congress will be more than usually engaged for some time to come with great national questions it was intended by the organization of the court of claims mainly to remove this branch of business from the halls of congress but while the court has proved to be an effective and valuable means of investigation it in great degree fails to effect the object of its creation for want of power to make its judgments final fully aware of the delicacy not to say the danger of the subject i commend to your careful consideration whether this power of making judgments final may not properly be given to the court reserving the right of appeal on questions of law to the supreme court with such other provisions as experience may have shown to be necessary i ask attention to the report of the the following being a summary statement of the condition of the department the revenue from all sources during the fiscal year ending june 30 1861 including the annual permanent appropriation of for the transportation of free mail matter was being about 2 per cent less than the revenue for 1860 the expenditures were showing a decrease of more than 8 per cent as compared with those of the previous year and leaving an excess of expenditure over the revenue for the last fiscal year of the gross revenue for the year ending june 30 1863 is estimated at an increase of 4 per cent on that of 1861 making to which should be added the earnings of the department in carrying free matter viz making the total expenditures for 1863 are estimated at leaving an estimated deficiency of to be supplied from the treasury in addition to the permanent appropriation the present insurrection shows i think that the extension of this district across the potomac river at the time of establishing the capital here was eminently wise and consequently that the relinquishment of that portion of it which lies within the state of virginia was unwise and dangerous i submit for your consideration the expediency of regaining that part of the district and the restoration of the original boundaries thereof through negotiations with the state of virginia the report of the secretary of the interior with the accompanying documents exhibits the condition of the several branches of the public business pertaining to that department the depressing influences of the insurrection have been specially felt in the operations of the patent and general land offices the cash receipts from the sales of public lands during the past year have exceeded the expenses of our land system only about the sales have been entirely suspended in the southern states while the interruptions to the business of the country and the diversion of large numbers of men from labor to military service have obstructed settlements in the new states and territories of the northwest the receipts of the patent office have declined in nine months about rendering a large reduction of the force employed necessary to make it the demands upon the pension office will be largely increased by the insurrection numerous applications for pensions based upon the casualties of the existing war have already been made there is reason to believe that many who are now upon the pension rolls and in receipt of the bounty of the government are in the ranks of the insurgent army or giving them aid and comfort the secretary of the interior has directed a suspension of the payment of the pensions of such persons upon proof of their disloyalty i recommend that congress authorize that officer to because the names of such persons to be stricken from the pension rolls the relations of the government with the indian tribes have been greatly disturbed by the insurrection especially in the southern superintendency and in that of new mexico the indian country south of kansas is in the possession of insurgents from texas and arkansas the agents of the united states appointed since the 4th of march for this superintendency have been unable to reach their posts while the most of those who were in office before that time have espoused the insurrectionary because and assume to exercise the powers of agents by virtue of commissions from the insurrectionists it has been stated in the public press that a portion of those indians have been organized as a military force and are attached to the army of the insurgents although the government has no official information upon this subject letters have been written to the commissioner of indian affairs by several prominent chiefs giving assurance of their loyalty to the united states and expressing a wish for the presence of federal troops to protect them it is believed that upon the repossession of the country by the federal forces the indians will readily cease all hostile demonstrations and resume their former relations to the government agriculture confessedly the largest interest of the nation has not a department nor a bureau but a clerkship only assigned to it in the government while it is fortunate that this great interest is so independent in its nature as to not have demanded and extorted more from the government i respectfully ask congress to consider whether something more can not be given voluntarily with general advantage annual reports exhibiting the condition of our agriculture commerce and manufactures would present a fund of information of great practical value to the country while i make no suggestion as to details i venture the opinion that an agricultural and statistical bureau might profitably be organized the execution of the laws for the suppression of the african slave trade has been confided to the department of the interior it is a subject of gratulation that the efforts which have been made for the suppression of this inhuman traffic have been recently attended with unusual success five vessels being fitted out for the slave trade have been seized and condemned two mates of vessels engaged in the trade and one person in equipping a vessel as a slaver have been convicted and subjected to the penalty of fine and imprisonment and one captain taken with a cargo of africans on board his vessel has been convicted of the highest grade of offense under our laws the punishment of which is death the territories of colorado dakota and nevada created by the last congress have been organized and civil administration has been inaugurated therein under auspices especially gratifying when it is considered that the leaven of treason was found existing in some of these new countries when the federal officers arrived there the abundant natural resources of these territories with the security and protection afforded by organized government will doubtless invite to them a large immigration when peace shall restore the business of the country to its accustomed channels i submit the resolutions of the legislature of colorado which evidence the patriotic spirit of the people of the territory so far the authority of the united states has been upheld in all the territories as it is hoped it will be in the future i commend their interests and defense to the enlightened and generous care of congress i recommend to the favorable consideration of congress the interests of the district of columbia the insurrection has been the because of much suffering and sacrifice to its inhabitants and as they have no representative in congress that body should not overlook their just claims upon the government at your late session a joint resolution was adopted authorizing the president to take measures for facilitating a proper representation of the industrial interests of the united states at the exhibition of the industry of all nations to be holden at london in the year 1862 i regret to say i have been unable to give personal attention to this subject a subject at once so interesting in itself and so extensively and intimately connected with the material prosperity of the world through the secretaries of state and of the interior a plan or system has been devised and partly matured and which will be laid before you under and by virtue of the act of congress entitled an act to confiscate property used for insurrectionary purposes approved august 6 1861 the legal claims of certain persons to the labor and service of certain other persons have become forfeited and numbers of the latter thus liberated are already dependent on the united states and must be provided for in some way besides this it is not impossible that some of the states will pass similar enactments for their own benefit respectively and by operation of which persons of the same class will be thrown upon them for disposal in such case i recommend that congress provide for accepting such persons from such states according to some mode of valuation in lieu pro tanto of direct taxes or upon some other plan to be agreed on with such states respectively that such persons on such acceptance by the general government be at once deemed free and that in any event steps be taken for colonizing both classes or the one first mentioned if the other shall not be brought into existence at some place or places in a climate congenial to them it might be well to consider too whether the free colored people already in the united states could not so far as individuals may desire be included in such colonization to carry out the plan of colonization may involve the acquiring of territory and also the appropriation of money beyond that to be expended in the territorial acquisition having practiced the acquisition of territory for nearly sixty years the question of constitutional power to do so is no longer an open one with us the power was questioned at first by jefferson who however in the purchase of louisiana yielded his scruples on the plea of great expediency if it be said that the only legitimate object of acquiring territory is to furnish homes for white men this measure effects that object for the emigration of colored men leaves additional room for white men remaining or coming here jefferson however placed the importance of procuring louisiana more on political and commercial grounds than on providing room for population on this whole proposition including the appropriation of money with the acquisition of territory does not the expediency amount to absolute necessity that without which the government itself can not be perpetuated the war continues in considering the policy to be adopted for suppressing the insurrection i have been anxious and careful that the inevitable conflict for this purpose shall not degenerate into a violent and remorseless revolutionary struggle i have therefore in every case thought it proper to keep the integrity of the union prominent as the primary object of the contest on our part leaving all questions which are not of vital military importance to the more deliberate action of the legislature in the exercise of my best discretion i have adhered to the blockade of the ports held by the insurgents instead of putting in force by proclamation the law of congress enacted at the late session for closing those ports so also obeying the dictates of prudence as well as the obligations of law instead of transcending i have adhered to the act of congress to confiscate property used for insurrectionary purposes if a new law upon the same subject shall be proposed its propriety will be duly considered the union must be preserved and hence all indispensable means must be employed we should not be in haste to determine that radical and extreme measures which may reach the loyal as well as the disloyal are indispensable the inaugural address at the beginning of the administration and the message to congress at the late special session were both mainly devoted to the domestic controversy out of which the insurrection and consequent war have sprung nothing now occurs to add or subtract to or from the principles or general purposes stated and expressed in those documents the last ray of hope for preserving the union peaceably expired at the assault upon fort sumter and a general review of what has occurred since may not be unprofitable what was painfully uncertain then is much better defined and more distinct now and the progress of events is plainly in the right direction the insurgents confidently claimed a strong support from north of mason and dixon line and the friends of the union were not free from apprehension on the point this however was soon settled definitely and on the right side south of the line noble little delaware led off right from the first maryland was made to seem against the union our soldiers were assaulted bridges were burned and railroads torn up within her limits and we were many days at one time without the ability to bring a single regiment over her soil to the capital now her bridges and railroads are repaired and open to the government she already gives seven regiments to the because of the union and none to the enemy and her people at a regular election have sustained the union by a larger majority and a larger aggregate vote than they ever before gave to any candidate or any question kentucky too for some time in doubt is now decidedly and i think unchangeably ranged on the side of the union missouri is comparatively quiet and i believe can not again be overrun by the insurrectionists these three states of maryland kentucky and missouri neither of which would promise a single soldier at first have now an aggregate of not less than in the field for the union while of their citizens certainly not more than a third of that number and they of doubtful whereabouts and doubtful existence are in arms against us after a somewhat bloody struggle of months winter closes on the union people of western virginia leaving them masters of their own country an insurgent force of about for months dominating the narrow peninsular region constituting the counties of accomac and northampton and known as eastern shore of virginia together with some contiguous parts of maryland have laid down their arms and the people there have renewed their allegiance to and accepted the protection of the old flag this leaves no armed insurrectionist north of the potomac or east of the chesapeake also we have obtained a footing at each of the isolated points on the southern coast of hatteras port royal tybee island near savannah and ship island and we likewise have some general accounts of popular movements in behalf of the union in north carolina and tennessee these things demonstrate that the because of the union is advancing steadily and certainly southward since your last adjournment scott has retired from the head of the army during his long life the nation has not been unmindful of his merit yet on calling to mind how faithfully ably and brilliantly he has served the country from a time far back in our history when few of the now living had been born and thenceforward continually i can not but think we are still his debtors i submit therefore for your consideration what further mark of recognition is due to him and to ourselves as a grateful people with the retirement of general scott came the executive duty of appointing in his stead a general in chief of the army it is a fortunate circumstance that neither in council nor country was there so far as i know any difference of opinion as to the proper person to be selected the retiring chief repeatedly expressed his judgment in favor of general mcclellan for the position and in this the nation seemed to give a unanimous concurrence the designation of general mcclellan is therefore in considerable degree the selection of the country as well as of the executive and hence there is better reason to hope there will be given him the confidence and cordial support thus by fair implication promised and without which he can not with so full efficiency serve the country it has been said that one bad general is better than two good ones and the saying is true if taken to mean no more than that an army is better directed by a single mind though inferior than by two superior ones at variance and with each other and the same is true in all joint operations wherein those engaged can have none but a common end in view and can differ only as to the choice of means in a storm at sea no one on board can wish the ship to sink and yet not unfrequently all go down together because too many will direct and no single mind can be allowed to control it continues to develop that the insurrection is largely if not exclusively a war upon the first principle of popular government the rights of the people conclusive evidence of this is found in the most grave and maturely considered public documents as well as in the general tone of the insurgents in those documents we find the abridgment of the existing right of suffrage and the denial to the people of all right to participate in the selection of public officers except the legislative boldly advocated with labored arguments to prove that large control of the people in government is the source of all political evil monarchy itself is sometimes hinted at as a possible refuge from the power of the people in my present position i could scarcely be justified were i to omit raising a warning voice against this approach of returning despotism it is not needed nor fitting here that a general argument should be made in favor of popular institutions but there is one point with its connections not so hackneyed as most others to which i ask a brief attention it is the effort to place capital on an equal footing with if not above labor in the structure of government it is assumed that labor is available only in connection with capital that nobody labors unless somebody else owning capital somehow by the use of it induces him to labor this assumed it is next considered whether it is best that capital shall hire laborers and thus induce them to work by their own consent or buy them and drive them to it without their consent having proceeded so far it is naturally concluded that all laborers are either hired laborers or what we call slaves and further it is assumed that whoever is once a hired laborer is fixed in that condition for life now there is no such relation between capital and labor as assumed nor is there any such thing as a free man being fixed for life in the condition of a hired laborer both these assumptions are false and all inferences from them are groundless labor is prior to and independent of capital capital is only the fruit of labor and could never have existed if labor had not first existed labor is the superior of capital and deserves much the higher consideration capital has its rights which are as worthy of protection as any other rights nor is it denied that there is and probably always will be a relation between labor and capital producing mutual benefits the error is in assuming that the whole labor of community exists within that relation a few men own capital and that few avoid labor themselves and with their capital hire or buy another few to labor for them a large majority belong to neither class neither work for others nor have others working for them in most of the southern states a majority of the whole people of all colors are neither slaves nor masters while in the northern a large majority are neither hirers nor hired men with their families wives sons and daughters work for themselves on their farms in their houses and in their shops taking the whole product to themselves and asking no favors of capital on the one hand nor of hired laborers or slaves on the other it is not forgotten that a considerable number of persons mingle their own labor with capital that is they labor with their own hands and also buy or hire others to labor for them but this is only a mixed and not a distinct class no principle stated is disturbed by the existence of this mixed class again as has already been said there is not of necessity any such thing as the free hired laborer being fixed to that condition for life many independent men everywhere in these states a few years back in their lives were hired laborers the prudent penniless beginner in the world labors for wages awhile saves a surplus with which to buy tools or land for himself then labors on his own account another while and at length hires another new beginner to help him this is the just and generous and prosperous system which opens the way to all gives hope to all and consequent energy and progress and improvement of condition to all no men living are more worthy to be trusted than those who toil up from poverty none less inclined to take or touch aught which they have not honestly earned let them beware of surrendering a political power which they already possess and which if surrendered will surely be used to close the door of advancement against such as they and to fix new disabilities and burdens upon them till all of liberty shall be lost from the first taking of our national census to the last are seventy years and we find our population at the end of the period eight times as great as it was at the beginning the increase of those other things which men deem desirable has been even greater we thus have at one view what the popular principle applied to government through the machinery of the states and the union has produced in a given time and also what if firmly maintained it promises for the future there are already among us those who if the union be preserved will live to see it contain the struggle of is not altogether for it is for a vast future also with a reliance on providence all the more firm and earnest let us proceed in the great task which events have devolved upon us
midst unprecedented political troubles great gratitude god unusual good health abundant harvests surprised learn peculiar exigencies times intercourse foreign nations attended profound solicitude chiefly turning upon domestic affairs disloyal portion american people whole year engaged attempt divide destroy union nation endures factious domestic division exposed disrespect abroad one party sure sooner later invoke foreign intervention nations thus tempted interfere always able resist counsels seeming expediency ungenerous ambition although measures adopted influences seldom fail unfortunate injurious adopting disloyal citizens united states offered ruin country return aid comfort invoked abroad received less patronage encouragement probably expected suppose insurgents seemed assume foreign nations case discarding moral social treaty obligations would act solely selfishly speedy restoration commerce including especially acquisition cotton nations appear yet seen way object directly clearly destruction preservation union could dare believe foreign nations actuated higher principle quite sure sound argument could made show reach aim readily easily aiding crush rebellion giving encouragement principal lever relied insurgents exciting foreign nations hostility us already intimated embarrassment commerce nations however improbably saw first union made well foreign domestic commerce scarcely failed perceive effort disunion produces existing difficulty one strong nation promises durable peace extensive valuable reliable commerce nation broken hostile fragments purpose review discussions foreign states whatever might wishes dispositions integrity country stability government mainly depend upon loyalty virtue patriotism intelligence american people correspondence usual reservations herewith submitted venture hope appear practiced prudence liberality toward foreign powers averting causes irritation firmness maintaining rights honor since however apparent every state foreign dangers necessarily attend domestic difficulties recommend adequate ample measures adopted maintaining public defenses every side general recommendation provision defending seacoast line readily occurs mind also connection ask attention congress great lakes rivers believed fortifications depots arms munitions harbor navigation improvements points upon would great importance national defense preservation ask attention views secretary war expressed report upon general subject deem importance loyal regions east tennessee western north carolina connected kentucky faithful parts union railroad therefore recommend military measure congress provide construction road speedily possible kentucky doubt cooperate legislature make judicious selection line northern terminus must connect existing railroad whether route shall lexington nicholasville cumberland gap lebanon tennessee line direction knoxville still different line easily determined kentucky general government cooperating work completed short time done vast present usefulness also valuable permanent improvement worth cost future treaties designed chiefly interests commerce grave political importance negotiated submitted senate consideration although failed induce commercial powers adopt desirable melioration rigor maritime war removed obstructions way humane reform except merely temporary accidental occurrence invite attention correspondence britannic majesty minister accredited government secretary state relative detention british ship perthshire june last united states steamer massachusetts supposed breach blockade detention occasioned obvious misapprehension facts justice requires commit belligerent act rounded strict right sanctioned public law recommend appropriation made satisfy reasonable demand owners vessel detention repeat recommendation predecessor annual message congress december last regard disposition surplus probably remain satisfying claims american citizens china pursuant awards commissioners act 3d march 1859 however deemed advisable carry recommendation effect would suggest authority given investing principal proceeds surplus referred good securities view satisfaction claims citizens china unlikely arise hereafter course extensive trade empire act 5th august last congress authorized president instruct commanders suitable vessels defend capture pirates authority exercised single instance effectual protection extensive valuable commerce eastern seas especially seems would also advisable authorize commanders sailing vessels recapture prizes pirates may make united states vessels cargoes consular courts established law eastern countries adjudicate cases event objected local authorities good reason exists persevere longer withholding recognition independence sovereignty hayti liberia unable discern unwilling however inaugurate novel policy regard without approbation congress submit consideration expediency appropriation maintaining charge near new states admit doubt important commercial advantages might secured favorable treaties operations treasury period elapsed since adjournment conducted signal success patriotism people placed disposal government large means demanded public exigencies much national loan taken citizens industrial classes whose confidence country faith zeal country deliverance present peril induced contribute support government whole limited acquisitions fact imposes peculiar obligations economy disbursement energy action revenue sources including loans financial year ending 30th june 1861 expenditures period including payments account public debt leaving balance treasury 1st july first quarter financial year ending 30th september 1861 receipts sources including balance 1st july expenses leaving balance 1st october 1861 estimates remaining three quarters year financial year 1863 together views ways means meeting demands contemplated submitted congress secretary treasury gratifying know expenditures made necessary rebellion beyond resources loyal people believe patriotism thus far sustained government continue sustain till peace union shall bless land respectfully refer report secretary war information respecting numerical strength army recommendations view increase efficiency various branches service intrusted care gratifying know patriotism people proved equal occasion number troops tendered greatly exceeds force congress authorized call field refer pleasure portions report make allusion creditable degree discipline already attained troops excellent sanitary condition entire army recommendation secretary organization militia upon uniform basis subject vital importance future safety country commended serious attention congress large addition regular army connection defection considerably diminished number officers gives peculiar importance recommendation increasing corps cadets greatest capacity military academy mere omission presume congress failed provide chaplains hospitals occupied volunteers subject brought notice induced draw form letter one copy properly addressed delivered persons dates respectively named stated schedule containing also form letter marked herewith transmitted gentlemen understand entered upon duties designated times respectively stated schedule labored faithfully therein ever since therefore recommend compensated rate chaplains army suggest general provision made chaplains serve hospitals well regiments report secretary navy presents detail operations branch service activity energy characterized administration results measures increase efficiency power additions construction purchase may almost said navy created brought service since difficulties commenced besides blockading extensive coast squadrons larger ever assembled flag put afloat performed deeds increased naval renown would invite special attention recommendation secretary perfect organization navy introducing additional grades service present organization defective unsatisfactory suggestions submitted department believed adopted obviate difficulties alluded promote harmony increase efficiency navy three vacancies bench supreme court two decease justices daniel mclean one resignation justice campbell far forborne making nominations fill vacancies reasons state two outgoing judges resided within states overrun revolt successors appointed localities could serve upon circuits many competent men probably would take personal hazard accepting serve even upon supreme bench unwilling throw appointments northward thus disabling justice south return peace although may remark transfer north one heretofore south would reference territory population unjust long brilliant judicial career judge mclean circuit grew empire altogether large one judge give courts therein nominal attendance rising population 1830 1860 besides country generally outgrown present judicial system uniformity intended system requires states shall accommodated circuit courts attended supreme judges fact wisconsin minnesota iowa kansas florida texas california oregon never courts well remedied without change system adding judges supreme court enough accommodation parts country circuit courts would create court altogether numerous judicial body sort evil one increase new states come union circuit courts useful useful useful state denied useful state let provided abolished three modifications occur either think would improvement upon present system let supreme court convenient number every event first let whole country divided circuits convenient size supreme judges serve number corresponding number independent circuit judges provided rest secondly let supreme judges relieved circuit duties circuit judges provided circuits thirdly dispense circuit courts altogether leaving judicial functions wholly district courts independent supreme court respectfully recommend consideration congress present condition statute laws hope congress able find easy remedy many inconveniences evils constantly embarrass engaged practical administration since organization government congress enacted acts joint resolutions fill closely printed pages scattered many volumes many acts drawn haste without sufficient caution provisions often obscure conflict least doubtful render difficult even persons ascertain precisely statute law really seems important statute laws made plain intelligible possible reduced small compass may consist fullness precision legislature perspicuity language well done would think greatly facilitate labors whose duty assist administration laws would lasting benefit people placing accessible intelligible form laws deeply concern interests duties informed whose opinions respect acts congress force permanent general nature might revised rewritten embraced one volume two volumes ordinary convenient size respectfully recommend congress consider subject suggestion approved devise plan wisdom shall seem proper attainment end proposed one unavoidable consequences present insurrection entire suppression many places ordinary means administering civil justice officers forms existing law case whole part insurgent states armies advance upon take possession parts states practical evil becomes apparent courts officers citizens states may apply enforcement lawful claims citizens insurgent states vast amount debt constituting claims estimated high due large part insurgents open rebellion loyal citizens even making great sacrifices discharge patriotic duty support government circumstances urgently solicited establish military power courts administer summary justice cases thus far declined doubt end proposed collection debts right unwilling go beyond pressure necessity unusual exercise power powers congress suppose equal anomalous occasion therefore refer whole matter congress hope plan may devised administration justice parts insurgent states territories may control government whether voluntary return allegiance order power arms however permanent institution temporary substitute cease soon ordinary courts reestablished peace important convenient means provided possible adjustment claims government especially view increased number reason war much duty government render prompt justice favor citizens administer private individuals investigation adjudication claims nature belong judicial department besides apparent attention congress usually engaged time come great national questions intended organization court claims mainly remove branch business halls congress court proved effective valuable means investigation great degree fails effect object creation want power make judgments final fully aware delicacy say danger subject commend careful consideration whether power making judgments final may properly given court reserving right appeal questions law supreme court provisions experience may shown necessary ask attention report following summary statement condition department revenue sources fiscal year ending june 30 1861 including annual permanent appropriation transportation free mail matter 2 per cent less revenue 1860 expenditures showing decrease 8 per cent compared previous year leaving excess expenditure revenue last fiscal year gross revenue year ending june 30 1863 estimated increase 4 per cent 1861 making added earnings department carrying free matter viz making total expenditures 1863 estimated leaving estimated deficiency supplied treasury addition permanent appropriation present insurrection shows think extension district across potomac river time establishing capital eminently wise consequently relinquishment portion lies within state virginia unwise dangerous submit consideration expediency regaining part district restoration original boundaries thereof negotiations state virginia report secretary interior accompanying documents exhibits condition several branches public business pertaining department depressing influences insurrection specially felt operations patent general land offices cash receipts sales public lands past year exceeded expenses land system sales entirely suspended southern states interruptions business country diversion large numbers men labor military service obstructed settlements new states territories northwest receipts patent office declined nine months rendering large reduction force employed necessary make demands upon pension office largely increased insurrection numerous applications pensions based upon casualties existing war already made reason believe many upon pension rolls receipt bounty government ranks insurgent army giving aid comfort secretary interior directed suspension payment pensions persons upon proof disloyalty recommend congress authorize officer names persons stricken pension rolls relations government indian tribes greatly disturbed insurrection especially southern superintendency new mexico indian country south kansas possession insurgents texas arkansas agents united states appointed since 4th march superintendency unable reach posts office time espoused insurrectionary assume exercise powers agents virtue commissions insurrectionists stated public press portion indians organized military force attached army insurgents although government official information upon subject letters written commissioner indian affairs several prominent chiefs giving assurance loyalty united states expressing wish presence federal troops protect believed upon repossession country federal forces indians readily cease hostile demonstrations resume former relations government agriculture confessedly largest interest nation department bureau clerkship assigned government fortunate great interest independent nature demanded extorted government respectfully ask congress consider whether something given voluntarily general advantage annual reports exhibiting condition agriculture commerce manufactures would present fund information great practical value country make suggestion details venture opinion agricultural statistical bureau might profitably organized execution laws suppression african slave trade confided department interior subject gratulation efforts made suppression inhuman traffic recently attended unusual success five vessels fitted slave trade seized condemned two mates vessels engaged trade one person equipping vessel slaver convicted subjected penalty fine imprisonment one captain taken cargo africans board vessel convicted highest grade offense laws punishment death territories colorado dakota nevada created last congress organized civil administration inaugurated therein auspices especially gratifying considered leaven treason found existing new countries federal officers arrived abundant natural resources territories security protection afforded organized government doubtless invite large immigration peace shall restore business country accustomed channels submit resolutions legislature colorado evidence patriotic spirit people territory far authority united states upheld territories hoped future commend interests defense enlightened generous care congress recommend favorable consideration congress interests district columbia insurrection much suffering sacrifice inhabitants representative congress body overlook claims upon government late session joint resolution adopted authorizing president take measures facilitating proper representation industrial interests united states exhibition industry nations holden london year 1862 regret say unable give personal attention subject subject interesting extensively intimately connected material prosperity world secretaries state interior plan system devised partly matured laid virtue act congress entitled act confiscate property used insurrectionary purposes approved august 6 1861 legal claims certain persons labor service certain persons become forfeited numbers latter thus liberated already dependent united states must provided way besides impossible states pass similar enactments benefit respectively operation persons class thrown upon disposal case recommend congress provide accepting persons states according mode valuation lieu pro tanto direct taxes upon plan agreed states respectively persons acceptance general government deemed free event steps taken colonizing classes one first mentioned shall brought existence place places climate congenial might well consider whether free colored people already united states could far individuals may desire included colonization carry plan colonization may involve acquiring territory also appropriation money beyond expended territorial acquisition practiced acquisition territory nearly sixty years question constitutional power longer open one us power questioned first jefferson however purchase louisiana yielded scruples plea great expediency said legitimate object acquiring territory furnish homes white men measure effects object emigration colored men leaves additional room white men remaining coming jefferson however placed importance procuring louisiana political commercial grounds providing room population whole proposition including appropriation money acquisition territory expediency amount absolute necessity without government perpetuated war continues considering policy adopted suppressing insurrection anxious careful inevitable conflict purpose shall degenerate violent remorseless revolutionary struggle therefore every case thought proper keep integrity union prominent primary object contest part leaving questions vital military importance deliberate action legislature exercise best discretion adhered blockade ports held insurgents instead putting force proclamation law congress enacted late session closing ports also obeying dictates prudence well obligations law instead transcending adhered act congress confiscate property used insurrectionary purposes new law upon subject shall proposed propriety duly considered union must preserved hence indispensable means must employed haste determine radical extreme measures may reach loyal well disloyal indispensable inaugural address beginning administration message congress late special session mainly devoted domestic controversy insurrection consequent war sprung nothing occurs add subtract principles general purposes stated expressed documents last ray hope preserving union peaceably expired assault upon fort sumter general review occurred since may unprofitable painfully uncertain much better defined distinct progress events plainly right direction insurgents confidently claimed strong support north mason dixon line friends union free apprehension point however soon settled definitely right side south line noble little delaware led right first maryland made seem union soldiers assaulted bridges burned railroads torn within limits many days one time without ability bring single regiment soil capital bridges railroads repaired open government already gives seven regiments union none enemy people regular election sustained union larger majority larger aggregate vote ever gave candidate question kentucky time doubt decidedly think unchangeably ranged side union missouri comparatively quiet believe overrun insurrectionists three states maryland kentucky missouri neither would promise single soldier first aggregate less field union citizens certainly third number doubtful whereabouts doubtful existence arms us somewhat bloody struggle months winter closes union people western virginia leaving masters country insurgent force months dominating narrow peninsular region constituting counties accomac northampton known eastern shore virginia together contiguous parts maryland laid arms people renewed allegiance accepted protection old flag leaves armed insurrectionist north potomac east chesapeake also obtained footing isolated points southern coast hatteras port royal tybee island near savannah ship island likewise general accounts popular movements behalf union north carolina tennessee things demonstrate union advancing steadily certainly southward since last adjournment scott retired head army long life nation unmindful merit yet calling mind faithfully ably brilliantly served country time far back history living born thenceforward continually think still debtors submit therefore consideration mark recognition due grateful people retirement general scott came executive duty appointing stead general chief army fortunate circumstance neither council country far know difference opinion proper person selected retiring chief repeatedly expressed judgment favor general mcclellan position nation seemed give unanimous concurrence designation general mcclellan therefore considerable degree selection country well executive hence better reason hope given confidence cordial support thus fair implication promised without full efficiency serve country said one bad general better two good ones saying true taken mean army better directed single mind though inferior two superior ones variance true joint operations wherein engaged none common end view differ choice means storm sea one board wish ship sink yet unfrequently go together many direct single mind allowed control continues develop insurrection largely exclusively war upon first principle popular government rights people conclusive evidence found grave maturely considered public documents well general tone insurgents documents find abridgment existing right suffrage denial people right participate selection public officers except legislative boldly advocated labored arguments prove large control people government source political evil monarchy sometimes hinted possible refuge power people present position could scarcely justified omit raising warning voice approach returning despotism needed fitting general argument made favor popular institutions one point connections hackneyed others ask brief attention effort place capital equal footing labor structure government assumed labor available connection capital nobody labors unless somebody else owning capital somehow use induces labor assumed next considered whether best capital shall hire laborers thus induce work consent buy drive without consent proceeded far naturally concluded laborers either hired laborers call slaves assumed whoever hired laborer fixed condition life relation capital labor assumed thing free man fixed life condition hired laborer assumptions false inferences groundless labor prior independent capital capital fruit labor could never existed labor first existed labor superior capital deserves much higher consideration capital rights worthy protection rights denied probably always relation labor capital producing mutual benefits error assuming whole labor community exists within relation men capital avoid labor capital hire buy another labor large majority belong neither class neither work others others working southern states majority whole people colors neither slaves masters northern large majority neither hirers hired men families wives sons daughters work farms houses shops taking whole product asking favors capital one hand hired laborers slaves forgotten considerable number persons mingle labor capital labor hands also buy hire others labor mixed distinct class principle stated disturbed existence mixed class already said necessity thing free hired laborer fixed condition life many independent men everywhere states years back lives hired laborers prudent penniless beginner world labors wages awhile saves surplus buy tools land labors account another length hires another new beginner help generous prosperous system opens way gives hope consequent energy progress improvement condition men living worthy trusted toil poverty none less inclined take touch aught honestly earned let beware surrendering political power already possess surrendered surely used close door advancement fix new disabilities burdens upon till liberty shall lost first taking national census last seventy years find population end period eight times great beginning increase things men deem desirable even greater thus one view popular principle applied government machinery states union produced given time also firmly maintained promises future already among us union preserved live see contain struggle altogether vast future also reliance providence firm earnest let us proceed great task events devolved upon us
midst unprecedented political trouble great gratitude god unusual good health abundant harvest surprise learn peculiar exigency time intercourse foreign nation attend profound solicitude chiefly turn upon domestic affair disloyal portion american people whole year engage attempt divide destroy union nation endure factious domestic division expose disrespect abroad one party sure sooner later invoke foreign intervention nation thus tempt interfere always able resist counsel seem expediency ungenerous ambition although measure adopt influence seldom fail unfortunate injurious adopt disloyal citizen united state offer ruin country return aid comfort invoke abroad receive less patronage encouragement probably expect suppose insurgent seem assume foreign nation case discard moral social treaty obligation would act solely selfishly speedy restoration commerce include especially acquisition cotton nation appear yet see way object directly clearly destruction preservation union could dare believe foreign nation actuate high principle quite sure sound argument could make show reach aim readily easily aid crush rebellion give encouragement principal lever rely insurgent excite foreign nation hostility u already intimate embarrassment commerce nation however improbably saw first union make well foreign domestic commerce scarcely fail perceive effort disunion produce exist difficulty one strong nation promise durable peace extensive valuable reliable commerce nation break hostile fragment purpose review discussion foreign state whatever might wish disposition integrity country stability government mainly depend upon loyalty virtue patriotism intelligence american people correspondence usual reservation herewith submit venture hope appear practice prudence liberality toward foreign power avert cause irritation firmness maintain right honor since however apparent every state foreign danger necessarily attend domestic difficulty recommend adequate ample measure adopt maintain public defense every side general recommendation provision defend seacoast line readily occur mind also connection ask attention congress great lake river believe fortification depot arm munition harbor navigation improvement point upon would great importance national defense preservation ask attention view secretary war express report upon general subject deem importance loyal region east tennessee western north carolina connect kentucky faithful part union railroad therefore recommend military measure congress provide construction road speedily possible kentucky doubt cooperate legislature make judicious selection line northern terminus must connect exist railroad whether route shall lexington nicholasville cumberland gap lebanon tennessee line direction knoxville still different line easily determine kentucky general government cooperate work complete short time do vast present usefulness also valuable permanent improvement worth cost future treaty design chiefly interest commerce grave political importance negotiate submit senate consideration although fail induce commercial power adopt desirable melioration rigor maritime war remove obstruction way humane reform except merely temporary accidental occurrence invite attention correspondence britannic majesty minister accredit government secretary state relative detention british ship perthshire june last united state steamer massachusetts suppose breach blockade detention occasion obvious misapprehension fact justice require commit belligerent act round strict right sanction public law recommend appropriation make satisfy reasonable demand owner vessel detention repeat recommendation predecessor annual message congress december last regard disposition surplus probably remain satisfy claim american citizen china pursuant award commissioner act 3d march 1859 however deem advisable carry recommendation effect would suggest authority give invest principal proceeds surplus refer good security view satisfaction claim citizens china unlikely arise hereafter course extensive trade empire act 5th august last congress authorize president instruct commander suitable vessel defend capture pirate authority exercise single instance effectual protection extensive valuable commerce eastern sea especially seem would also advisable authorize commander sail vessel recapture prize pirate may make united state vessel cargo consular court establish law eastern country adjudicate case event object local authority good reason exists persevere longer withhold recognition independence sovereignty hayti liberia unable discern unwilling however inaugurate novel policy regard without approbation congress submit consideration expediency appropriation maintain charge near new state admit doubt important commercial advantage might secure favorable treaty operation treasury period elapse since adjournment conduct signal success patriotism people place disposal government large mean demand public exigency much national loan take citizen industrial class whose confidence country faith zeal country deliverance present peril induce contribute support government whole limited acquisition fact impose peculiar obligation economy disbursement energy action revenue source include loan financial year end 30th june 1861 expenditures period include payment account public debt leave balance treasury 1st july first quarter financial year end 30th september 1861 receipt source include balance 1st july expense leave balance 1st october 1861 estimate remain three quarter year financial year 1863 together view way mean meeting demand contemplate submitted congress secretary treasury gratify know expenditure make necessary rebellion beyond resource loyal people believe patriotism thus far sustained government continue sustain till peace union shall bless land respectfully refer report secretary war information respect numerical strength army recommendation view increase efficiency various branch service intrust care gratify know patriotism people prove equal occasion number troop tender greatly exceed force congress authorize call field refer pleasure portion report make allusion creditable degree discipline already attain troop excellent sanitary condition entire army recommendation secretary organization militia upon uniform basis subject vital importance future safety country commend serious attention congress large addition regular army connection defection considerably diminish number officer give peculiar importance recommendation increase corps cadet great capacity military academy mere omission presume congress fail provide chaplains hospital occupy volunteer subject bring notice induce draw form letter one copy properly address delivered person date respectively name state schedule contain also form letter mark herewith transmit gentleman understand enter upon duty designate time respectively state schedule labor faithfully therein ever since therefore recommend compensated rate chaplain army suggest general provision make chaplain serve hospital well regiment report secretary navy present detail operation branch service activity energy characterize administration result measure increase efficiency power addition construction purchase may almost say navy create brought service since difficulty commence besides blockade extensive coast squadron large ever assemble flag put afloat perform deed increase naval renown would invite special attention recommendation secretary perfect organization navy introduce additional grade service present organization defective unsatisfactory suggestion submit department believe adopted obviate difficulty allude promote harmony increase efficiency navy three vacancy bench supreme court two decease justice daniel mclean one resignation justice campbell far forborne make nomination fill vacancy reason state two outgoing judge reside within state overrun revolt successor appoint locality could serve upon circuit many competent men probably would take personal hazard accept serve even upon supreme bench unwilling throw appointment northward thus disable justice south return peace although may remark transfer north one heretofore south would reference territory population unjust long brilliant judicial career judge mclean circuit grow empire altogether large one judge give court therein nominal attendance rise population 1830 1860 besides country generally outgrown present judicial system uniformity intend system require state shall accommodate circuit court attend supreme judge fact wisconsin minnesota iowa kansas florida texas california oregon never court well remedied without change system add judge supreme court enough accommodation part country circuit court would create court altogether numerous judicial body sort evil one increase new state come union circuit court useful useful useful state deny useful state let provide abolished three modification occur either think would improvement upon present system let supreme court convenient number every event first let whole country divide circuit convenient size supreme judge serve number corresponding number independent circuit judge provide rest secondly let supreme judge relieve circuit duty circuit judge provide circuit thirdly dispense circuit court altogether leave judicial function wholly district court independent supreme court respectfully recommend consideration congress present condition statute law hope congress able find easy remedy many inconvenience evils constantly embarrass engage practical administration since organization government congress enact act joint resolution fill closely print page scatter many volume many act draw haste without sufficient caution provision often obscure conflict least doubtful render difficult even person ascertain precisely statute law really seem important statute law make plain intelligible possible reduce small compass may consist fullness precision legislature perspicuity language well do would think greatly facilitate labor whose duty assist administration law would last benefit people place accessible intelligible form law deeply concern interest duty inform whose opinion respect act congress force permanent general nature might revise rewrite embraced one volume two volume ordinary convenient size respectfully recommend congress consider subject suggestion approve devise plan wisdom shall seem proper attainment end propose one unavoidable consequence present insurrection entire suppression many place ordinary mean administer civil justice officer form exist law case whole part insurgent state army advance upon take possession part state practical evil become apparent court officer citizen state may apply enforcement lawful claim citizen insurgent state vast amount debt constituting claim estimate high due large part insurgent open rebellion loyal citizen even make great sacrifice discharge patriotic duty support government circumstance urgently solicit establish military power court administer summary justice case thus far decline doubt end propose collection debt right unwilling go beyond pressure necessity unusual exercise power power congress suppose equal anomalous occasion therefore refer whole matter congress hope plan may devise administration justice part insurgent state territory may control government whether voluntary return allegiance order power arm however permanent institution temporary substitute cease soon ordinary court reestablish peace important convenient mean provide possible adjustment claim government especially view increased number reason war much duty government render prompt justice favor citizen administer private individual investigation adjudication claim nature belong judicial department besides apparent attention congress usually engage time come great national question intend organization court claim mainly remove branch business hall congress court prove effective valuable mean investigation great degree fails effect object creation want power make judgment final fully aware delicacy say danger subject commend careful consideration whether power make judgment final may properly give court reserve right appeal question law supreme court provision experience may show necessary ask attention report follow summary statement condition department revenue source fiscal year end june 30 1861 include annual permanent appropriation transportation free mail matter 2 per cent less revenue 1860 expenditures show decrease 8 per cent compare previous year leave excess expenditure revenue last fiscal year gross revenue year end june 30 1863 estimate increase 4 per cent 1861 make added earnings department carry free matter viz make total expenditure 1863 estimate leave estimate deficiency supply treasury addition permanent appropriation present insurrection show think extension district across potomac river time establish capital eminently wise consequently relinquishment portion lie within state virginia unwise dangerous submit consideration expediency regain part district restoration original boundary thereof negotiation state virginia report secretary interior accompany document exhibit condition several branch public business pertain department depress influence insurrection specially felt operation patent general land office cash receipt sale public land past year exceed expense land system sale entirely suspend southern state interruption business country diversion large number men labor military service obstruct settlement new state territory northwest receipt patent office decline nine month render large reduction force employ necessary make demand upon pension office largely increased insurrection numerous application pension base upon casualty exist war already make reason believe many upon pension roll receipt bounty government rank insurgent army give aid comfort secretary interior direct suspension payment pension person upon proof disloyalty recommend congress authorize officer name person stricken pension roll relation government indian tribe greatly disturbed insurrection especially southern superintendency new mexico indian country south kansas possession insurgent texas arkansas agent united state appoint since 4th march superintendency unable reach post office time espouse insurrectionary assume exercise power agent virtue commission insurrectionist state public press portion indian organize military force attach army insurgent although government official information upon subject letter write commissioner indian affair several prominent chief give assurance loyalty united state express wish presence federal troop protect believe upon repossession country federal force indian readily cease hostile demonstration resume former relation government agriculture confessedly large interest nation department bureau clerkship assigned government fortunate great interest independent nature demand extorted government respectfully ask congress consider whether something give voluntarily general advantage annual report exhibit condition agriculture commerce manufacture would present fund information great practical value country make suggestion detail venture opinion agricultural statistical bureau might profitably organize execution law suppression african slave trade confide department interior subject gratulation effort make suppression inhuman traffic recently attend unusual success five vessel fit slave trade seize condemn two mate vessel engage trade one person equip vessel slaver convict subject penalty fine imprisonment one captain take cargo africans board vessel convict high grade offense law punishment death territory colorado dakota nevada create last congress organize civil administration inaugurate therein auspex especially gratify consider leaven treason find exist new country federal officer arrive abundant natural resource territory security protection afford organized government doubtless invite large immigration peace shall restore business country accustom channel submit resolution legislature colorado evidence patriotic spirit people territory far authority united state upheld territory hop future commend interest defense enlighten generous care congress recommend favorable consideration congress interest district columbia insurrection much suffer sacrifice inhabitant representative congress body overlook claim upon government late session joint resolution adopt authorize president take measure facilitate proper representation industrial interest unite state exhibition industry nation holden london year 1862 regret say unable give personal attention subject subject interest extensively intimately connect material prosperity world secretary state interior plan system devise partly mature lay virtue act congress entitle act confiscate property use insurrectionary purpose approve august 6 1861 legal claim certain person labor service certain person become forfeited number latter thus liberate already dependent united state must provide way besides impossible state pass similar enactment benefit respectively operation person class throw upon disposal case recommend congress provide accept person state accord mode valuation lieu pro tanto direct tax upon plan agree state respectively person acceptance general government deem free event step take colonize class one first mention shall bring existence place place climate congenial might well consider whether free colored people already united state could far individual may desire included colonization carry plan colonization may involve acquire territory also appropriation money beyond expend territorial acquisition practice acquisition territory nearly sixty year question constitutional power longer open one u power question first jefferson however purchase louisiana yield scruple plea great expediency say legitimate object acquire territory furnish home white men measure effect object emigration color men leave additional room white men remain come jefferson however place importance procure louisiana political commercial ground provide room population whole proposition include appropriation money acquisition territory expediency amount absolute necessity without government perpetuate war continue consider policy adopt suppress insurrection anxious careful inevitable conflict purpose shall degenerate violent remorseless revolutionary struggle therefore every case think proper keep integrity union prominent primary object contest part leave question vital military importance deliberate action legislature exercise best discretion adhere blockade port hold insurgent instead put force proclamation law congress enact late session closing port also obey dictate prudence well obligation law instead transcend adhere act congress confiscate property use insurrectionary purpose new law upon subject shall propose propriety duly consider union must preserve hence indispensable mean must employ haste determine radical extreme measure may reach loyal well disloyal indispensable inaugural address begin administration message congress late special session mainly devote domestic controversy insurrection consequent war sprung nothing occur add subtract principle general purpose state express document last ray hope preserve union peaceably expire assault upon fort sumter general review occur since may unprofitable painfully uncertain much well define distinct progress event plainly right direction insurgent confidently claim strong support north mason dixon line friend union free apprehension point however soon settle definitely right side south line noble little delaware lead right first maryland make seem union soldier assault bridge burn railroad torn within limit many day one time without ability bring single regiment soil capital bridge railroad repair open government already give seven regiment union none enemy people regular election sustain union large majority large aggregate vote ever give candidate question kentucky time doubt decidedly think unchangeably range side union missouri comparatively quiet believe overrun insurrectionist three state maryland kentucky missouri neither would promise single soldier first aggregate less field union citizens certainly third number doubtful whereabouts doubtful existence arm u somewhat bloody struggle month winter close union people western virginia leave master country insurgent force month dominate narrow peninsular region constitute county accomac northampton know eastern shore virginia together contiguous part maryland lay arm people renew allegiance accept protection old flag leave arm insurrectionist north potomac east chesapeake also obtain foot isolated point southern coast hatteras port royal tybee island near savannah ship island likewise general account popular movement behalf union north carolina tennessee thing demonstrate union advance steadily certainly southward since last adjournment scott retire head army long life nation unmindful merit yet call mind faithfully ably brilliantly serve country time far back history living bear thenceforward continually think still debtor submit therefore consideration mark recognition due grateful people retirement general scott come executive duty appoint stead general chief army fortunate circumstance neither council country far know difference opinion proper person select retire chief repeatedly express judgment favor general mcclellan position nation seem give unanimous concurrence designation general mcclellan therefore considerable degree selection country well executive hence well reason hope give confidence cordial support thus fair implication promise without full efficiency serve country say one bad general well two good one say true take mean army well direct single mind though inferior two superior one variance true joint operation wherein engage none common end view differ choice mean storm sea one board wish ship sink yet unfrequently go together many direct single mind allow control continue develop insurrection largely exclusively war upon first principle popular government right people conclusive evidence find grave maturely consider public document well general tone insurgent document find abridgment exist right suffrage denial people right participate selection public officer except legislative boldly advocate labored argument prove large control people government source political evil monarchy sometimes hint possible refuge power people present position could scarcely justified omit raise warn voice approach return despotism need fit general argument make favor popular institution one point connection hackneyed others ask brief attention effort place capital equal footing labor structure government assume labor available connection capital nobody labor unless somebody else owning capital somehow use induces labor assume next consider whether best capital shall hire laborer thus induce work consent buy drive without consent proceed far naturally concluded laborer either hire laborer call slave assume whoever hire laborer fix condition life relation capital labor assume thing free man fix life condition hire laborer assumption false inference groundless labor prior independent capital capital fruit labor could never exist labor first exist labor superior capital deserves much high consideration capital right worthy protection right deny probably always relation labor capital produce mutual benefit error assume whole labor community exist within relation men capital avoid labor capital hire buy another labor large majority belong neither class neither work others others work southern state majority whole people color neither slave master northern large majority neither hirer hire men family wife son daughter work farm house shop take whole product ask favor capital one hand hire laborer slave forget considerable number person mingle labor capital labor hand also buy hire others labor mixed distinct class principle state disturbed existence mixed class already say necessity thing free hire laborer fix condition life many independent men everywhere state year back live hired laborer prudent penniless beginner world labor wag awhile save surplus buy tool land labor account another length hire another new beginner help generous prosperous system open way give hope consequent energy progress improvement condition men live worthy trust toil poverty none less inclined take touch aught honestly earn let beware surrender political power already possess surrender surely use close door advancement fix new disability burden upon till liberty shall lose first take national census last seventy year find population end period eight time great begin increase thing men deem desirable even great thus one view popular principle applied government machinery state union produce give time also firmly maintain promise future already among u union preserve live see contain struggle altogether vast future also reliance providence firm earnest let u proceed great task event devolve upon u