glte gamour guttiligturn, PUBLISHED =EBY WZDAESBAY BY 11. G. SMITH & co A. J. STEINMAN IT. G. SMITI7 TED :DS—Two Dollars per annum, payable in all cases in advance. Tiia DANCAISTER DAILY INTZLLIGERCILIt Is published every evening, Sunday excepted, at 55 per Annum in advance. ooarriza or arisrras OFFICE—So do:WARE. gtiollantout3. What the Andirons Cost " Peter," said my uncle, knocking the ashes from his pipe, laying it on the corner of the shelf, and then fixing his eyes on the Andirons, " Peter, those cost me $l,OOO !" "Dear me!" exclaimed my aunt. " Oh, father," cried the girls. " Impossible," said I. " True, every word true. $l,OOO, did I say? yes, $2,000, full $2,000!" Well, well," said my aunt, folding up her knitting for the night, " Ishould like to know what you are talking about." My uncle bent forward, and planting his hands firmly on his parted knees, and with a deliberate air showed no doubt of his being able to prove his as sertions, he began : Well, you see, a good many years ago, we had a pair of common old andirons. Your cousin you says one day, " Father, don't you think these old An diron are getting too shabby?" Shabby or not, says. I, they would hold up the wood as nicely as if they were made of gold. Soon after that, Peter, continued my uncle, "your aunt took it up —" " There it goes," interrupted my aunt, "you can't get along without dragging me in." " Your aunt took it up, Peter, and she said, "our neighbors could afford brass andirons, and they were no better off than we were.'• And she said Letty and her sister Jane werejust getting old enough to see company, and the stingy looking andirons might hurt their market. I knew that women will have their own way, and there le no use in objecting : so I got the andirons." The price or them was four dollars and a half —" "Ali, that's more like it!" cried my aunt. "1 thought you said $2,000!" "My deur, 1 wish you would not in terrupt me. Four and a half. Well, the first night after we got them, as we all sat by the warm fire talking over the matter, betty called my attention to the hearth, thestones of which werecracked and uneven. The hearth was entirely out of keeping with the new andirons, and I thought I might as well have it replaced•first as last. The next day, a mason was sent for to examine it.' He came in my absence, and when I re• turned home, your aunt and cousins all beset me at once to have a marble slab, and they put their heads together." "La me!" exclaimed my aunt, "there was no putting heads together about it. The hearth was a real worn out thing, not fit fora pig pen." "They puetheir beads together. Peter, as I was saying, andcoutinued - till I got a marble hearth, which cost me twenty dollars—yes, twenty dollars, at least. Then I thought I was done with ex penses, but I was wrong. Soon I began to hear sly hints thrown out about the brick work around the fire-place, not corresponding with the hearth. I stood for a month or two against your aunt and the girls, but they at length got the better of me, and I was forced to have marble instead of brick. And then the old wood mantel-piece was so out of character that it was necessary to have a marble one. The cost of this was nearly $lOO. And now that the spirit of improvement had got a start, there was no stopping. The new mantle put to shame the old white-washed walls, and they must be painted, of course ; and to prewe them for paint, sundry repairs were necessary. While this was going on, your aunt and the girls ap peared to be quite satisfied ; and when It was done, they had no idea that the old parlor could be made to look so spruce But this was;only ashort respite. The fild•rag carpet began to raise a dust, and I found there would be no peace—" " Now, father !" exclaimed the girls. "Till I got a new carpet. That, again, shamed the old furniture, and it had to be turned out and replaced with new. Now, Peter, my lad, count up $2O for the hearth and sl,to for the mantel-piece and repairs. What does that make?" "$l5O, uncle." " Well, ;30 for paper and paint?" " s2ou: , "Tbeu $3O for a carpet, and $lOO, at least, for furniture "$350." "Ahem! There's that clock, too, and the blinds--$5O more." "$4OO, exactly." My aunt and cousins winked at each other.* "Now," continued my uncle, "so much for this one room. No sooner was the room finished, than the complaints came from all quarters about the dining• room and entry. Long before this I had surrendered at their discretion, and handed in my submission. The dining room cost $4OO more. What does that count, Peter ? " "500, uncle." "Then the chambers—at least 400, to make them chime with the downstairs." " 1;200.. "The outside of the house had to be repaired and painted, of course. Add 200 for that." "1400." "Theo, there must be a piazza In front; that cost 200." " 1,000." Here aunt began to yawn, Letty to poke the lire, and Jane to twirl over the leaves of a book. "A new carriage came next, Peter; that cost $2OO. "1,800." "Then there was a lawn to be laid but and neatly fenced—a servant to be hired—parties given occasionally—bon- nets and dresses at double the former cost—and a hundred other little ex peuses in keeping with the new order or things. Yes, Peter, I was entirely within wounds when I said $2,000." The opposition was silent. My aunt immediately arose and "guessed it was bed time." I was left alone with my uncle, who was not inclined to drop the subject. He was a persevering man, and never gave up what he undertook till lie lnid done the work thorougly. So he brolight out his books and ac• counts, and set about making an exact estimate ()I . : the expense. He kept me up, till air mid-night before he got tlarough. ;His conclusion was that the Idais of anllirono cost him $3,450. The Mysteries of AhLaura The Journal of Commerce is telling of some wonderful reminiscences of an tiquity, wh ibh one of the officers aCCOlTl panyiug Clem Rousseau to Alaska has Just been unearthening there—such as wooden helmets, masks, with diabolical faces, made of iron and copper, with swords, and oilier warlike implements; of ivory, exquisitely carved. The editor has seen these articles with his own eyes, and hence, as if in amazement, asks: "WhO were this now extinct race of ivory carvers and iron forgers? Their kabits and tastes seem to have been quite unlike any of the Indian tribes of this continent. They did not build tumuli, like the mound builders, of whom the Indians have no traditions. It seems probable, from all the facts known, that the original Alaskians came over from Northern Asia in ca noes. There is a line of islands looking likeetepping stones on the map, stretch ing from Kamchatka to the extreme southwestern point of Alaska. The old Alaskians, like the present race, made large and strong canoes, and were bold navigators; and the achievement of a passage from Asia, by way of Kamchat ka across the Aleutian Archipelago is possible." Death of the President of Venezuela Advices from Venezuela announce the death of General Jose Tadeo Mona gas, President of Venezuela. Gen. Mona gas was a revolutionary leader for many years, and was one of the most dread ed, because the most popular among the people of all the prominent men In his country. The New York Times, in giv ing a brief sketch of his life, remarks that he fought gallantly to secure the independence of his country, 'and then led the first revolt against its regularly elected Pr Went, General Paez. The insurrection- is speedily put down, as were also two ethers which he insti gated. In 1846 however, he was made President, but in 1846 set himself up as a dictator and attacked the House of Representatives, 'compelling his new made friend, General Paez, to take arms against_him. Monagas succeeded in sustaining himself, and reigned su preme until 1859, when he was over thrown. Manuel Felipe de Tovas was his successor, having been elected Presi dent; but in 1861 Paez was proclaimed dictator. Marshal Falcon was elected President in .1863, and held office until driven therefrom by Monagas at the head of an indurrectionary army. The death of this ambitious leader is likely to resnit in another revolution before a successor IS chosen to fill- the vacant office. • ...":.: .. '''..l):t i;all,,aot/eit,. -- .sittictitiOnee VOLUME 69 PRESIDENT'S MESSAGE Fellow.eitteens 4f, the Senate and Douse of Acepreserdagives : Upon the reassembling of Congress, it again becomes my duty to call your atten• tion to the state of the rfnion and to its con tinued disorganized condition under the various laws which have been passed upon the subject of reconstruction. It may be safely assumed, as an axiom in the govenment of States, that the great est wrongs inflicted upon a people are caused by unjust and arbitrary legislation, or by the unrelenting decrees of despotic rulers, and that the timely revocation of in jurious and oppressive; measures is the greatest good that can be'conferred upon a nation. The legislator or ruler who has the wisdom and magnanimity to retrace his steps, when convinced of error, will sooner or later be rewarded with the respect and gratitude of an intelligent and patriotic peo ple. Out own history—although embracing a period less than a century—affords abund ant proof that most, it not all of our domes tic troubles are directly traceable to viola tions of the organic law and excessive leg islation. The most striking illustrations of this fact are furniehed by the enactments of the past three years upon the question of reconstruction. After a fair trial, they have substantially failed and proved per nicious in their results, and there seems to be no good reason why they abould longer remain upon the statute-book. States to which the Constitution guarantees a repub limn form of government have been reduc ed to military dependencies, in each of which the people have been made subject to the arbitrary will of the commanding general. Although the Constitution re , quires that each State shall be reuesented in Congress, Virginia, Missiasippl, and Texas are yet excluded from the two Houses, and, contrary to the express pro , vlsionsof that instrument, were denied par ticipation in the recent election for a Presi dent and Vice President of the Untied States. The attempt to place the white pop ulation under the domination of pe ions of color in the South has impaired, If not de stroyed, the kindly relations that bad pre viously existed between them; and mutual distrust lies engendered a feeling of ani mosity which, leading in some instances to collision and bloodshed, has prevented that co-operation between the two races so es sential to the success of industrial enter prises,in the Southern States. Nor have the inhabitants of those States alone suffered from the disturbed condition of affairs growing rf of these Congressional enact ments. The entire Union has been agitated by grave apprehensions of troubles which might again involve the peace of the nation; its interests have been injuriously effected by the derangement of business an 9 labor, and-the consequent want of prosperity throughout that portion of the country. The Federal Constitution, the magna charla of American rights, under whose wise and salutary provisions we have sue• cessfully conducted all our domestic and loreign affairs, sustained oursolvss in peace and in war, and become a great nation among the Powers of the Earth—must as suredly be now adequate to the eettiement of questions growing out of the civil war waged alone fur its vindication. This great fact is made most manifest by the condition of the country when Congress assembled in the month of December, 1863. Civil strife had ceased: the spirit of rebellion bad spent its entire force; in the Southern States the people had warmed into nation al life, and throughout the whole country a healthy reaction in public sentiment had taken place. By the application of the sim ple yet effective provisions of the Constitu i on, the Executive Department, with the voluntary aid of the States, had brought the work of restoration as near completion as was within the scope of its authority, and the nation was encouraged by the pros pect of an early and satisfactory adjust ment of all its cii.fficulties. Congress, how ever, into' veued, and refusing to perfect the work so nearly consummated, declined to admit members from the unrepresented States, adopted a series of measures which arrested the progress of restoration, frus trated all that had been so successfully ac • complished, and after three years of agi tation and strife, has left the country far ther from the attainment of union anti fra ternal feeling than at the inception of the Congressional plan of reconstruction. It needs no argument to show that legislation which has produced such baneful conse quences should be abrogated, or else made to conform to the genuine principles of re publican government. Under the influence of party passion and sectional prejudice other acts have been passed not warranted by the constitution. Congress has already beau made familiar with my views respecting the " tenure of office bill." Experience has proved that its repeal is demanded by the best interests of the country, and that while it remains in force the President cannot enjoin that rigid accountability of public officers so es sential to an honest and efficient execution of the laws. Its revocation would enable the Executive Department to exercise the power of appointmeut and removal in ac cordance with the original design of the Federal Constitution. - - - - - The act of March 2, 1867, making appro priations for the support of the army for the year ending .une 30, 1868,fand forother purl:irises, contains provisions which inter ferei N'itti the President's constitutional functi ns as commander-in-chief of the army, arid deny to States of the Union the right to protect themselves by means of their own militia. These provisions should be at once annulled ; for while the first might, in times of great emergency, seri riously embarrass the Executive in efforts to employ and direct the common strength of the nation for its protection and preser vation, the other is contrary to the express declaration of the Constitution, that "a well regulated militia being necessary to the security of a free State, the right of the people to keep and bear arms shall not be infringed." It is believed that the repeal of all such laws would bencCepted by the American people as at least a partial return to the fundamental principles of the Government and an indication that hereafter the Consti tution is to be made the nation's safe-and unerring guide. They can be productive of no permanent benefit Ao the country, *mei should not be permitted to stand as so monuments of the deficient wisdom which 1 has characterized our recent legislation. The condition of our finances demands the early and earnest consideration of Con gress. Compared with the growth of our population, the public expenditures have reached an amount unprecedented in our history. The population of the United States in 1790 was nearly four millions of people. Increasing each - decade about thirty-three per cent., it reached iu 1800 thirty-one mil lions—all increase of seven hundred per cent, on the population in 1700. In 1869 it is estimated that it will reach thirty-eight millions, or an increase of eight hundred and sixty-eight per cent. iu seventy-nine years. The annual expenditures of the Federal Govvrnment in 1791 were four millions two hundred thousand dollars ; in 1820, eigh teen milion two hundred thousand dollars ; in 1850 forty-one millions: in 1880, sixty three millions; in 180, - „i, nearly thirteen hundred miltinns, undid 1969 it is estimated by the Secretary of the Treasury, in his last annual report, that they will be three hundred and seventy-two millions. By comparing the public disbursements of 1869, as estimated, with those of 1791, it will be seen that the increase of expendi ture since the beginning of the Govern- merit, has been eight thousand six hum dred and eighteen per centum, while the increase of the popnlation for the same period was only eight hundred and sixty-eight per centum. Again: the ex penses of the Government in 1860, the year of peace immediately preceeding the war, were only sixty-three millions; while iu 1868, the year of peace, three years after the war, it is estimated they will be three hundred seventy-two millions—an increase of four hundred and eighty-nine per con tum, while the increase of population was only twenty-one per centum• for the same period. These statistics further show that in 1791 the annual national expenses, compared with the population, were little more than one dollar per capita, and in 1860 but two .dollars per capita; while in 1869 they will reach the extravagant sum of nine dollars and seventy-eight cents per capita. • It will be observed that all of these state ments refer to and exhibit the disburse merits of peace periods. It may, therefore, be of interest to compare the expenditures of the three war periods—the war with Great Britain, the Mexican war, and the war of the rebellion. In 1814 the annual expenses incident to the war of 1812 reached the highest amount —about thirty-one millions; while our population slightly exceeded eight millions, showing an expenditure of only three dol lars and eighty, cents per capita. In 1847 the expenditures growing out of the war with Mexico reached fifty-five millions, and the population about twenty-one millions, giving only two dollars and sixty cents per capita for the war expenses of that year.— In 1865 the expenditures called for by the rebellion reached the vast amount of twelve hundred and ninety millions, which, com pared with a population of thirty-four mil• lions, gives thirty-eight dollars and twenty cents per capita. From the fourth day 'of March, 1789, to the thirtieth of June, 1881, the entire expen ditures of the Government were seventeen hundred millions of dollars. During that period we were engaged in wars with Great Britain and Mexico, and were involved in hostilities with powerful Indian tribes; Louisiana was purchased from France at a cost of fifteen, millions of dollars; Florida was ceded to us by Spain for five millions; California was acquired from Mexico for fifteen millions; and the Territory of New Mexico was obtained from Texas for the sum of ten millions. Early in 1881 the war of the rebellion commenced, and from the first of July of that year to the 30th of June, 1865, the public expenditures reached the =MEM enormous aggregate of thirty-three hun dred millions. Threeyears of peace ikave intervened, and during that time the ills bursemeuta of the Governmont have suc cessively been five hundred and twenty milliens, three hundred and forty-six mil lions, amid three hundred and ninety-three millions. Adding to these amounts three hundred and seventy-two millions, estima ted as necessary for the fiscal year ending the 80th of Jane, 1889, we obtain a total expenditure of sixteen hundred millions of dollars during the four years immediately succeeding the war, or nearly as much as was expended daring the seventy-two years that preceded the rebellion, and em braced the extraordinary expenditures al ready named. These startling facts clearly illustrate the necessity of retrenchment in all branches of the public service. Abuses which were tolerated during the war for the preserva tion of the nation will not be endured by the people, now that profound peace pre vails. The receipts from internal revenues and customs have, during the past three years, gradually diminished, and the con tinuance of useless and extravagant ex penditures will involve us in national bank ruptcy, or else make inevitable an increase of taxes, already too onerous, and in many respects obnoxious on account of their in quisitorial character. One hundred mil lions annually are expended for the mili tary force, a large portion of which it em ployed in the execution of laws both unnecessary and unconstitutional; one hundred and fifty millions are required each year to pay the interest on the public debt; an army of tax gatherers impover ishes the nation ; and public agents, placed by Congress beyond the control of the Ex ecutive, divert from their legitimate pur poses large sums of money which they col lect from the people in -the Dame of the Government. Judicious legislation and prudent economy can aloneremedy defects and avert evils which, if suffered to exist, cannot fail to diminish confidence in the public councils, and weaken the attachment and respect of4he people towards their po litical institutions. Without proper care the small balance which it is estimated will remain in the Treasury at the close of the present fiscal year will not be realized, and additional millions be added Ma debt which is now enumerated by billions. It is shown, by the able and comprehen sive report of the Secretary of the Trees ury, that the receipts for the fical year end ing June 30, 1868, were $405,638,083, and that the expenditures for the same period were $377,340,284, leaving in the Treasury it surplus of $28,297,708. It is estimated that the receipts during the present fiscal year ending June 30; 1860, will be $341,392,- 868, and the expenditures $336,152,470, showing a small balance of $5,240,308 in favor of the Government. For the fiscal year ending June 30, 1870, It is estimated that the receipts will amount to $327,000,- 000, and the expenditures tc $303,000,000, leaving an estimated surplus of $24,000,000. It becomes proper, in this connection, to make a brief reference to our public in debtedness, which has accumulated with such alarming rapidity and assumed such colossal proportions. In 1780, when the government com menced operations under the Federal Con stitution, It was burdened with an indebt edness of seventy five millions of dollars, created during the war of the Revolution. This amount had been reduced to forty-five millions of dollars, when in 1812 war was declared against Great Britain. The three years' struggle that followed largely in creased the national obligations, and in 1816 they had attained the sum of one hun dred and twenty-seven millions. Wise and economical legislatiom—however, enabled the Government to pay the entire amount within a period of twenty years, aird the extinguishment of the national debt filled the land with rejoicing. and was one of the great events of President Jackson ad min istration. After its redemption a large fund remained in the Treasury, which was deposited for safe-keeping with the several States, on condition that it should be re turned when required by the public wants. In 1840—the year after the termination of an expensive war with Mexico—we found ourselves involved in a debt of sixty-four millions; and'this was the amount owed by the Government in 1860, just prior to the outkreak of the rebellion. In the spring or 1861 our civil war commenced. Each year of its continuance made an enor mous addition to the debt; and when, in the spring of 1865, the nation successfully emerged from the conflict, the obligations of the Government bad reached the im mense sum of $2,873,002,000. The Secretary of the Treasury shows that on the Ist day of November, 1887, this amount bed been reduced to $2.401,501,450; but at the same time his report exhibits an Increase during the past year of $35,625,102 ; for the debt on the Ist day , of November last is stated to have been $2,527,129,552, It is estimated by the Secretary that the returns for the past month-will add to our liabilities the further sum of eleven millions—making a total in crease during thirteen months of forty-six and a half millions. In my message to Congress in December 4, 1865, it was suggested that a policy should be devised which, without being oppressive to the people, woull at once begin to effect a reduction of the debt, and, if persisted in, discharge it fully within a definite number of years. The Secretary of the Treasury forcibly recommends legislation of this character, and justly urges that the longer it is deferred the more difficult must be come its accomplishment. We should fol low the wise precedents established in 1789 and IBIG, and without further delay make provision for the payment of our obligations at as early a period as may be practicable. The fruits of their labors should:be enjoyed by our citizens, rather than used to build up and sustain moneyed monopolies in our Own and other lands. Our foreign debt is already computed by the Secretary of the Treasury at eight hundred and fifty mil lions; citizens of foreign countries receive interest upon a large portion of our securi ties, and American tax-payers are made to contribute large sums for their support. The idea that such a debt is to become per manent should be at all times discarded, as involving taxation too heavy to be borne, and payment once in every sixteen years, at the present rate of interest, of an amount equal to the original sum. This vast debt, if permitted to become permanent and in creasing, must eventually be gathered into the hands of a few, and enable them to ex ert a dangerous and controlling power in the affairs of the Government. The borrowers would become servants to the lenders—the lenders the masters of the people. We now pride ourselves upon having given freedom to four millions of the colored race; it will then be our shame that forty millions of people, by their own toleration of usurpa tion and profligacy, have suffered them selves to become enslaved, and merely ex changed slave-owners for new taskmasters in the shape of bondholders and tax-gath erers. Besides, permanent debts pertain to monarchical governments, and, tending to monopolies, perpetuities, and class legisla tion, are totally irreconcilable with free in stitutions. Introduced into our republican system, they would gradually but surely sap its foundations, eventually subvert our governmental fabric, and erect upon its ruins a moneyed aristocracy. It is our sacred duty to transmit unimpaired to our , posterity the blessings of liberty which were bequeathed to us by the founders of the Re pu blic;and by our example teach those who are to follow us carefully to avoid the den gem which threaten a free and independent people. Various plans have been proposed for the payment of the public debt. However they may have varied as to the time and mode in which it should be redeemed, there seems to be a general concurrence as to the propriety f and Justness of a reduction in the present rate of interest. The Secre tary of the Treasury in his report recom mends five per cent.; Congress, in a bill passed prior to adjournment on the 27th of July last, agred upon four and four and a half per cent.; while by many three per cent, has been held to be an amply suffi cient return for the investment. The gen• eral impression as to the exorbitancy of the existing rate of interest has led to an in quiry in the public mind respecting the consideration which the Government has actually received for its bonds, and the conclusion is becoming prevalent that the I amount which it obtained was in real money three or four hundred per cent. less I than the obligations which it issued in re- I turn. It cannot be denied that we are pay ing an extravagant per centage for the use of the money borrowed, which was paper currency, greatly depreciated below the value of coin. This fact is made apparent when we consider that bondholders receive from the Treasury, upon each dollar they own in Government securities, six per cent. in gold, which is nearly or quite equal to nine per cent. in currency; that the bonds are then converted into capital for the na tional banks, upon which those institutions issue their circulation, bearing six per cent. interest; and that they are exempt from taxation by the:Government and the States, and thereby enhanced two per cent. in the hands of the holders. We thus have an aggregate of seventeen per cent. which may be received noon each dollar by the owners of Government securi ties. A system that produces such results is justly regarded as favoring a few at the expense of the many, and has led to the farther inquiry whether our bondholders, in view of the large profits which they have enjoyed, would themselves be averse to a settlement of our indebted ness upon a plan which would yield them a fair remuneration, and at the same time be just to the tax-payers of the nation. Our national credit should be sacredly observed; but in making provision for our creditors we should not forget what is due to the masses of the people. It may be assumed that the holders of our securities have al ready received upon their bonds a largbr amount than their original investment, measured by a gold standard. Upon this statement of fasts it would seem but just awl equitable that the six per cent. interest now paid by the Government should be ap• plied to the reduction of the principal in semi-annual instalments, whicn in sixteen years and eight months would liquidate the entire national debt. Six per cent. in gold LANCASTER PA. WEDNESDAY MORNING DECEMBER 16 1868 would at present rates be equal to nine per cent, in currency, and equivalent to the payment of the debt one and a half time in a fraction less than seventeen years. This, in connection with all the other advantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this they should be satisfied. The lessons of the past admonish the lender that it is not well to be over anxious in ex acting from the borrower rigid compliance with the letter of the bond. If provision be made for the payment of the indebtedness of the Government in the manner suggested, our nation will rapidly recover its wonted prosperity. Its inter ests require that some measure should be taken to release the large amount of capi tal invested in the securities of the Gov eminent. It is not now merely unproduc tive, but in taxation annually consumes one hundred and fifty millions of dollars, which would otherwise be used by our en terprising people in adding la the wealth of the nation. Our commerce, which at one time successfully rivalled that of the great maritime Powers, has rapidly diminished, and our industrial interests are in a de pressed and languishing condition. The development of our inexhaustible resour -1 ass is checked, and the fertile fields of the 1 South are becoming waste for want of means to till them. With the release of capital, new life would be infused into the paralyzed energies of our people, and ac tivity and vigor imparted to every brunch of industry. Our people need encourage ment in their efforts to recover from the ef fects-of the rebellion and of injudicious legislation ; and it should be the aim of the Government to stimulate them by the pros. pect of an early release from the burdens which impede their prosperity. If we can not take the burdens from their shoulders, we shoald at least manifest a willingness to help to bear them. In referring to the condition of the circu lating medium, I shall merely reiterate, substantially, that portion of my last -an nual message which relates to that subject. The proportion which the currency of any country should bear to the whole value of the annual produce circulated by its means is a question upon which political economists have not agreed. Nor can it be controlled by legislation, but must be left to the irrevocable laws which everywhere regulate commerce and trade. The circu lating medium will ever irresistibly flow to those points where it is in greatest de mand. The law of demand and supply is as unerring as that which regulates the tide of the ocean; and indeed currency, like the tides, has its ebbs and flows throughout the commercial world. At the beginning of the rebellion the bapk note circulation of the country amounted to not much more than two hun dred millions of dollars; now the circula• lion of National Bank notes and those known as "legal tenders" is-nearly seven hundred millions. While it is urged by some that this amount should be increased, others contend that a decided reduction Is absolutely essential to the best interests of the country. In view of these diverse opinions, it may be well to ascertain the real value of our paper issues, when corn compared with a metallic or convertible currency. For this purpose, let us inquire how much gold and silver could be pur chased by the seven hundred millions of paper money now in circulation? Proba bly not more than halt' the amount of the latter—showing that when our paper cur reuce is compared with gold and silver, its commercial value is compressed into three hundred and fifty millions. This striking fact makes it the obvious duty of the Gov ernment, as early as may be consistent with the principles of sound political econ omy, to take such measures as will enable the holder of its notes and those of the Na tional Banks to convert them, without loss, into specie, or its equivalent. A reduction of our paper circulating mediums need not necessarily follow. This, however, would depend upon the law of demand and sup ply, though it should be borne in mind that by making legal tender and bank notes con vertible into coin or its equivalent, their present specie value in the hands of their holders would be enhanced one hundred per cent. Legislation for the accomplishment of a result so desirable is demanded by the high. est public considerations. The Constitution contemplates that the circulating medium of the country shall be uniform in quality and value. At the time of the formation of that instrument, the country had just emerged from the war of the Revolution, and was suffering from the effects of a re dundant and worthless paper currency.— The sages of that period were anxious to protect their posterity from the evils which they themselves bad experienced. Hence, in providing a circulating medium, they conferred upon Congress the power to coin money and regulate the value thereof, at the same time prohibiting the States from making anything but gold and silver a ten der in payment of debts. The anomolous condition of our currency is in striking contrast with that which was originally designed. Our circulation now em braces, first, notes of the National Banks, which are made receivable for all dues to the Government, excluding imposts, and by all his creditors, excepting in payment of interest upon its bonds and the securities themselves; second. legal-tender notes, issued by the United States, and which the law requires shall be received as well in payment of all debts between citizens as of all Government dues, excepting imposts; and, third, gold and silver coin. By the operation of our present system of finance, however, the metallic currency, when col lected, is :eserved only for one class of Gov ernmei3t creditors, who, holding its bonds, semi-annually receive their interest in coin from the National Treasury. There is no reason which will be accepted as satisfactory by the people, why those who defend us on the land. and protect us on the sea; the pen sioner upon the gratitude of the nation, bearing thescars and wounds received while in its service; the public servants in the various Departments of the Government; the farmer who supplies the soldiers of the army and the sailors of the navy ; the artisan who toils in the nation's workshops, or the mechanics and laborers who build its edi fices and construct its forts and vessels of war—should, in payment of their just and hard earned dues, receive depreciated paper, while another class of their countrymen, no more deserving, are paid in coin of gold and silver. Equal and exact justice requires that all the creditors of the Government should be paid in a currency possessing.. a uniform value. This can only be accom plished by the restoration of the currency to the standard established by the Consti lotion ; and by this means we would re ' move a discrimination which may, it it has ! not already done so, create a prejudice that may become deep- rooted and wide-spread, and imperil the national credit. The feasibility of making our currency correspond with the constitutional stand ard may be seen by reference to a few facts derived from our commercial statistics. The aggregate product of precious metals in the United States from 1849 to 1867 amounted to $1,174,000,000, while, for the same period, the net exports of specie were $741,000,000. This shows an excess of pro duct over net exports of $433,000,000. There are in the Treasury $103,407,985 in coin ; in circulation in the States on the Pacific coast about $40,000,000, and a few millions in the National and other Banks—in all less than $160,000,000. Taking into consideration the specie:in the country prior to 1849, and that produced since 1867, and we have more than 3300,000,000 not accounted for by exporta tion or by the returns of the T,easury, and therefore most probably remaining in the country. These are important facts, and show how completely the inferior currency will super sede the better, forcinc it from circulation among the masses, and causing it to be ex ported as a mere article of trade, to add to the money capital of foreign lands. They show the necessity of retiring our paper money, that the return of gold and silver to the avenues of trade may be invited, and a demand created which will cause the re• fraition at home of at least so much of the productions of our rich and inexhaustible gold bearing fields as may be suffi cient for purposes of circulation. It is un reasonable to expect a return to a sound currency so long as the Government and banks by continuing to issue irredeemable notes, fill the channels of circulation with depreciated paper. Notwithstanding a coinage by our mints, since 1849, of eight hundred and seventy-four millions of dollars, the people are now strangers to the currency which was designed for their use and benefit, and specimens of the precious metals bearing the national device are sel dom seen, except when produced to gratify the interest excited by their novelty. If depreciated paper is to be continued as the permanent currency of the country,:and all Our coin is to become a mere article of traffic and speculation, to the enhancement in price of all that is Indispensable to the comfort of the people, it would be wise economy to abolish our mints, thus saving the nation the care and expense incident to such establishments and let all our precious metals be exported in bullion. The time has come, however, when the Government and National Banks should be required to take the most efficient steps and make all necessary arrangements for a resumption of specie payments. Let specie payments once be earnestly inaugurated by the Gov ernment and banks, and the value of the paper circulation would directly approxi mate a specie standard. Specie payments having been resumed by the Government and banks, all notes or bills of paper issued by either of a less de- nomination than twenty dollars should by law be excluded from circulation, so, that the people may have the benefit and con venience of a gold and silver currency which in all their business transactions will be uniform in value at home and abroad. " Every man of property or industry, every man who desires to preserve what he honestly possesses, or to maintain what he can honestly earn, has a direct interest in maintaining a safe circulating medium— such a medium as shall be real and sub stantial not liable to vibrate with opinions, not subject to be blown up or blown down by the breath of speculation, bat to be stable and secure. A disordered cur rency is one of the greatest political evils. It undermines the virtues necessary fertile support of the social system, and encour ages propensities destructive of its happi ness; it warsagainst industry, frugality and economy, and it fosters the evil spirits of ex travagance and speculation." It has been asserted by one of our profound and most gifted statesmen, that "of all the con trivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money. This is the most effectual of irf ventions to fertilize the rich man's fields 63 , the sweat of the poor man's brow. Ordi- I nary tyranny, oppression, excessive taxa tion—these bear lightly on the happiness of the mass of the community compared ' with a fraudulent currency, and the robbe ries committed by depreciated paper. Our own history has recorded for our instruc tion enough, and more than enough of the demoralizing tendency, the injustice, and the intolerable oppression on the sinuous and well-disposed of a degraded paper cur rency authorized by law or in any way countenanced by Government. It is one of the most successful devices, in times of peace or war, of expansions or revul. sinus, to accomplish the transfer of alt the precious metals from the great mass of the people into the hands of the few, where they are hoarded in secret places or deposi ted under bolts and bars, while the people are left to endure all the inconvenience, sacrifice and demoralization resulting from the use of depreciated and worthless paper. The Secretary of the Interior, in his re port, gives valuable information in refer enc., to the interests confided to the super vision of his Department, and reviews the operations of the Land Office, Pension Of fice, Patent Office, and the Indian Bureau. During the fiscal year ending June 30, 1868, six million six hundred and fifty five thousand seven hundred acres of public land were disposed of. The entire cash re ceipts of the General Land Office for the same period were $1,632,745, being greater by $084,883 than the amount realized from the same sources during the previous year. The entries under the homestead law cover two millions three hundred and twenty- eight thousand nine hundred and twenty three acres, nearly one-fourth of which was taken under the act of June 21, 1866, which applies only to the States of Alabama, Mis sissippi, Louisiana, and Florida. Ou the 30th of June, 1868, one hundred and sixty-nine thousand six hundred and forty-three nameswere borne on the pension rolls, and during the year ending on that day the total amount paid for pensions, including the expenses of disbursement, werels24,olo,9B2,being $5,391,0r25 greater than that expended for like purposes during the preceding year. During the year ending the 30th of Sep tember last, the expenses of the Patent Of ficeexceeded the receipts by one blinded and seventy-one dollars; and, including reis sues and designs, fourteen thousand one hundred and fifty-three patents were issued. Treaties with various Indian tribes have been concluded, and will be submitted tothe Senate for its constitutional action. 1 cordi ally sanction the stipulations which provide fur reserving lands for the various tribes, where they may be encouraged to abandon their nomadic habits and engage in agricul tural and industrial pursuits. This policy, inaugurated many years since, hasluet with signal success; whenever it has been pur sued in good faith and with becoming liber ality by the United States. The necessity for extending it as far as practicable in our relations with the aboriginal population is greater now than at any preceding period. Whilst we furnish subsistence and instruc tion to the Indians, and guarantee the un disturbed enjoyment of their treaty-rights, we should habitually insist upon the faith• ful observance of their:agreement to remain within their respective reservations. This is the only mode by which collision with other tribes and with the whites can be avoided, and the safety of our frontier set tlements secured. The companies constructing the railway from Omaha to Sacramento have been moat energetically engaged _in prosecuting the work, and it is believed that the line will be completed before the expiration of the next fiscal year. The six per cent. Iva .1. issued to these companies amounted, on tue sth inst., to $44,337,000, and additioni.l xork bad been performed to the extent of i;t3,200,- 000. The Secretary of the Interior in August last invited my attention to the report of a Government director of the Union Pacific Railroad Company, who had been specially instructed to examine the location, con struction and equipment of their road. I submitted for the opinion of the Attorney General certain questions in regard to the authority of the Executive which arose upon this report, and those which bad from time to time been presented by the commissioners appointed to inspect each successive section of the work. After care fully considering the law of the case, he affirmed the right of the Executive to or der, if necessary, a thorough revision of the entire road. Commissioners were there upon appointed to examine this and other lines, and have recently submitted a state ment of their investigations, of which the report of the Secretary of the Interior fur nishes specific information. The report of the Secretary of War con tains information of interest and impor tance respecting the several Bureaus of the War Department and the operations of the army. The strength of our military force, on the 30th of September last, was forty eight thousand men, and it is computed that, by the first of January next, this number will be decreased to forty three thousand. It is the opinion of the Secre tary of War that within the next year a considerable diminution of the infantry force may be made without detriment to the interests of the country; and in view of the great expense attending the military peace establishment, and the absolute ne cessity of retrenchment wherever it can be applied, it is hoped that Congress will sanc tion the reduction which his report recom mends. While in 1860 sixteen thousand three hundred men cost the nation $16,472,- 000, the suns of $65,682,000 is estimated as necessary for the support of the army dur ing the fiscal year ending June 30, 1870. The estimates of the War Department for the lest two fiscal years were, for 1867, $33,814,- 461, and for 1868, $25,205,669. The actual expenditures during the same periods were respectively, $95,224,415 and 5123,246,048. The estimate submitted in December last for the fiscal year ending June 30, 1869, was $77,124,707 ; the expenditures for the first quarter, ending the 30th of September last, were $27,219,117, and the Secretary of the Treasury gives $66,000,000 as the amount which will probably be required during the remaining three quarters, if there should be no reduction of the army—making its aggregate cost for the year considerably in excess of ninety•three millions. The dif ference between the estimates and expen ditures for the three fiscal years which have been namee is thus shown to be $175, 545,343 for this single branch of the public service. The report of the Secretary of the Navy exhibits the operations of that Department and of the navy during the year. A consid erable reduction of the force has been effect ed. There are forty-two vessels, carrying four hundred and eleven guns, in the six squadrons which are established in different parts of the world. Three of these vessels are returning to the United States and four are used as storeships, leaving the actual -ruising force thirty-five vessels, carrying three hundred and fifty-six guns. The total number of vessels in the navy is two hundred and six, mounting seventeen hundred and forty-three guns. Eighty-one vessels of every descripton are in use, armed with six hundred and ninety-six guns. The number of enlisted men in the service, including apprentices,has been reduced to eight thousand five hundred. An increase of navy yard facilities is re commended as a measure which will, in the event of war, be promotive of economy and security. A more thorough and systematic survey of the North Pacific Ocean is advised in view of our recent requisitions, our expand ing commerce, and the increasing inter course between the Pacific States and Asia. The naval pension fund, which consists of a moiety of the avails of prizes captured during the war, amounts to $14,000,000. Ex ception is taken to the act of 23d July last, which reduces the interest on the fund loan ed to the Government by the Secretary, as trustee, to three per cent. instead of six per cent., which was originally stipulated when the investment was made. An amendment of the pension laws is suggested to remedy omissions and defects in existing enact ments. The expenditures of the Depart ment during the last fiscal year were $20,- 120,394, and the estimates for the coming year amount to $20,993,414. The Postmaster General's Report furnish es a full and clear exhibit of the operations and condition of the postal service. The ordinary poStal revenue for the fiscal year ending June 30, 1868, was $16,292,600, and the total expenditures, embracing all the service for which special appropriations have been made by Congress, amounted to $22,730,582, showing an excess of expendi tures of $6,437,691, Deducting from the expenditures the sum of $1,896,625, the amount of appropriations for ocean steam ship and other special service, the excess of expenditures was $5,541,486. By using an unexpended balance in the Treasury of $3,800,000, the actual sum for which a spe cial appropriation is required to meet the deficiency is $741,486. The causes which produced this large excess of expenditure over revenue were the restoration of sex , vice in the late insurgent States, and the putting into operation of new service estab lished by acts of Congress, which amounted within the last two years and a half, to about 48,700 miles—equal to more than one third of the whole amount of the service at the close of the war. New postal conven tions with Great Britian, North Germany, Belgium, the Netherlands, Switzerland and Italy, respectively, have been carried into effect. Under their provisions important improvements have resulted in reduced rates of international postage, and en larged mail facilities with European coun- fries. Vas coat of the United States trans- Atlantic ocean mail service since January 290868, has been largely lessened under the operation of these new conventions, a reduction of over one-half having been ef• fected under the new arrangements for ocean mail steamship service which went into effect, on that date. The attention of Con• gress is invited to the practical suggestions and recommendations made in his report by the Postmaster General. No important question has occurred dur ing the last year in our accustomed cordial and friendly intercourse with Costa Rica, Guatemala, Honduras, San Salvador, France, Austria, Belgium, Switzerland, Portugal, the Netherlands, Denmark, Sweden and Norway, Rome, Greece, Tur key, Persia, India, Egypt, Liberia, Moroc co, Tripoli, Tunis, Muscat, Siam, Borneo, and Madagascar. Cordial relations have also been main tained with the Argentine and the Oriental Republics. The expressed wish of Con gress that our national good offices might be tendered to those Republics, and also to Brazil and Paraguay, for bringing to an end the calamitous war which has so long been raging in the valley of the La Plata, has been assiduously complied with, and kindly acknowledged by all the belliger ents. That important negotiation, however, has thus far been without result. Charles A. Washburne, late United States Minister to Paraguay, having resigned, and being desirous to return to the United States, the Rear Admiral commanding the SouthAtlantlcSquadron was early directed to send a ship-of-war to Asuncion, the capital of Paraguay, to receive Mr. Wash burne and his family, and remove them from a situation which was represented to be endangered by faction and foreign war. The Brazilian commander of the allied invading forces refused permission to the " Wasp" to pass through the blockading forces, and that vessel returned to its ac customed anchorage. Remonstrance hav ing been made against this refusal it was promptly overruled, and the " Wasp" therefore resumed her errand, received Mr. Washburne and family, and conveyed them to a safe and convenient seaport. In the meantime an excited controversy had arisen between the President of Paraguay end the late United States Minister, which it is understood grew out of his proceedings in giving asylum in the United States lega tion to alleged enemies of that Republic. The question of the right to give asylum is one always difficult, and often productive of great embarrassment. In States well organized and established, foreign Powers refuse to concede or exercise that right, except as to persons:actually belong ing to the diplomatic service. On the other hand, all such Powers insist upon exercis ing the right of asylum in States where the law of nations Is not fully acknowledged, respected, and obeyed. The President of Paraguay is understood to have opposed to !Mr. Washburne's pro ceedings the injurious and very improbable charge of personal complicity in insurrec tion and treason. The correspondence, however, has not yet reached the United States. Mr. Washburne, in connection with this controversy, represents that two United States citizens attached to the legation were arbitrarily seized at his side, when leaving the capital of Paraguay, committed to prison, and there subjected - to torture for the purpose of procuring confessions of their own criminality, and testimony to support the President's allegations against the United States Minister. Mr. McMahon, the newly appointed Minister to Paraguay, having reached the La Plata, has been in structed to proceed, without delay, to Asun cion, there to investigate the whole subject. The Rear Admiral commanding the United States South Allende Squadron has been directed to attend the new Minister with a proper naval force to sustain such just de mends as the occasion may require, and to vindicate the rights of the United States citizens referred to, and of any others who may be exposed to danger in the theatre of war. With these exceptions friendly rela tions have been maintained between the United States and Brazil and Paraguay. Our relations during the peat year with Bolivia, Ecuador, Peru and Chili, have be come especially friendly and cordial. Spain and the Republics of Peru, Bolivia, and Ecuador have expressed their willingness to accept the mediation of the United States for terminating the war upon the South Pa cific coast. Chile has not finally declared upon the question. In the meantime the conflict has practically exhausted itselt, since no belligerent or hostile movement has been made by either party during the last two years, and there are no indications of a present purpose to resume hostilities on either side. Great Britain and France have cordially seconded our proposition of mediation, and I do not forgo the hope that it may soon be accepted by all the belliger ents, and lead to a secure establishment of peace and friendly relations between the Spanish American Republics of the Pacific and Spells—a result which would be attend ed with common benefits to the belliger ents and much advantage to all commercial nations. I communicate, for the consider ation of Congress, a correspondence which shows that the Bolivian Republic has es tablished the extremely liberal principle of receiving into its citizenship any citizen of the United States, or of any other of the American Republics, upon the simple con• dition of volunteer registry. The correspondence herewith submitted will be found painfully replete with ac counts of the ruin and wretchedness produced by recent earthquakes, of un paralelled, severity, in the Republics of Porn, Ecuador, and Bolivia. The diplo matic agents and naval officers of the United States who were present in those countries at the time, of those disas ters furnished all the relief in their power to the sufferers, and were promptly re warded with grateful and touchingacknow ledgments by the Congress of Peru. An appeal to the charity of our fellow-citizens has been answered by much liberality. In this connection I submit an appeal which has been made by the Swiss Republic, whose Government and institutions are kindred to our own, in behalf of its Inhabit ants, who are suffering extreme destitution produced by recent devastating inunda tions. Our relations with Mexico during the year have been marked by an increasing growth of mutual confidence. The Mexi can Government has not yet acted upon the tbree treaties celebrated here last summer for establishing the rights of naturalized citizens upon a liberal and just basis, for regulating consular powers, and for t e ad justment of mutual claims. All:commercial nations, as we as friend., of republican institutions, have oc casion to regret the frequent local disturb ances which occur in some of the constitu ent Staten of Columbia Nothing has oc curred, however, to affect the harmony and cordial friendship which have for several years existed between that youthful and vigorous Republic and our own. Negotiations are pending with a view to the survey and construction of a ship canal across the Isthmus of Darien, under the auspices of the United States. I hope to be able to submit the results of that negotia tion to the Senate during its present ses sion. The very liberal treaty which was enter ed into last year by the United States and Nicaragua has been ratified by the latter Republic. Costa Rica, with the earnestness of a sin cerely friendly neighbor, solicits a recipro city of trade, which I commend to the con sideration of Congress. The convention created by treaty between the United States and Venezuela in July, 1.865, for the mutual adjustment or claims, has been held, and its decisions have been received at the Department of State, The heretofore recognized Government of the United States of Venezuela has been sub verted. A Provisional Government having been instituted under circumstances which promise durability, it has been formally recognized. I have been reluctantly obliged to ask explanation and satisfaction t for national injuries committed by the President of Hayti. The political and social condition of the Republics of Hayti and St. Domingo is very unsatisfactory and painful. The abolition of slavery, which has been carried into effect throughout the island of St. Domingo and the entire West Indies, ex cept the Spanish islands of Cuba and Porto Rico, has been followed by a profound pop ular conviction of the rightfulness of repub lican institutions, and an intense desire to secure them. The attempt, however, to es tablish republics there encounters many obstacles, most of which may be supposed to result from long-indulged habits of colonial supineness and dependence upon European monarchical Powers. While the United States have, on all occasions, pro fessed a decided unwillingness that any part of this continent or of its adjacent islands shall be made a theatre for a new establishment of monarchical power, too little ham been done by us, on the other hand, to attach the communitees by which we are surrounded to our own country, or to lend even a moral support to the efforts they are so resolutely and constantly making to secure republican institutions for themselves. It is indeed a question of grave consideration whether our recent and present example is not cal culated to check the growth and expansion of free principles, and makes these com munities distrust, if not dread, a Govern , went .which at will consigns to military 1 domination States that are integral parts of 1 our Federal Union, and, while ready to re sist any attempts by other nations to extend to this hemisphere the monarchial institu tions of Europe, assumes to establish over a large portion of its people a rule more absolute, harsh, and tyrannical than any known to civilized Powers. The acquisitional' Alaska was made with the view of extending national jurisdiction and republican principles in the American hemisphere. Believing that a furtharittep could be taken in the same direction. I last year entered into a treaty with the King of Denmark for the purchase of the islands of St. Thomas and St. John, on the best terms then attainable, and with the express con sent of the people of those islands. This treaty still remains under consideration in the Senate. A new convention has been entered into with Denmark, enlarging the time fixed for final ratification of the origi nal treaty. Comprehensive national policy would seem to sanction the aqquisition and incor poration into the Federal Union of the several adjacent continental and insular communities as speedily , as it can be done peacefully, lawfully, and without any vio lation of national justice, faith, or honor. Foreign possession or control of those com munities has hitherto hindered the growth and impaired the influence of the United States. Chronic revolution and anarchy there would be equally injurious. Each one of them, when firmly established as an in dependent republic, or when incorporated into the United States, would be a new source of strength and power. Conforming my administration to these principles, I have cn no occasion lent support or tolera tion to unlawful expeditions set on loot upon the plea of republican propagandism, or of national extension or aggrandizement. The necessity, however, of repressing such unlawful movements clearly indicates the duty which rests upon us of adapting our legislative action to the new circumstances of a decline of European monarchial power and influence, and the increase of Ameri can republican ideas, interests and sympa thies. It cannot be long before it will become necessary for this Government to lend some effective aid to the solutions of the political and social problems which are continually kept before the world by the two republics of the islands of St. Domingo, and which are now disclosing themselves more distinctly than heretofore in the island of Cuba. The subject is commended to your considera tion with all the more earnestness because I am satisfied that the time has arrived when even so direst a - proceeding as a prop osition for an annexation of the two repub lics of the island of St. Domingo would not only receive the consent of the people inter ested, but would also give satisfaction to all other foreign nation.. I am aware that upon the . question of further extending our possessions it is prehended by some that our political tern cannot succe-sfully be applied titan area more extended tban our continent; but the conviction is rapidly gaining ground in the American mind that, with the increased facilities for interpominunica tion between all portions of the earth, the principles of free government, as embraced in our Constitution, if faithfully maintained and carried out, would prove of sufficient strength and breadth to comprehend with in their sphere and influence the civilized nations of the whole world. The attention of the Senate and of Con gress is again respectfully invited to the treaty for the establishment of commercial reciprocity with the Hawaiian Kingdom, entered into last year, and already ratified by that Government. The attitude of the United States towards these islands is not very different from that In which they stand towards the West Indies. It is known and felt by the Hawaiian Government and peo ple that their Government and institutions are feeble and precarious; that the United States, being so near a neighbor, would be unwilling to see the ish...nds pass under for eign control. Their prosperity is continu ally disturbed by eniectutions and alarms of unfriendly political proceedings, as well from the United States as from other foreign powers. A reciprocity treaty, while it could not materially diminish the revenues of the United States, would be a guaranty of the good will and forbearance of all nations un t 1 the people of the islands shall of them selves, at no distant day, voluntarily apply for admission to the Union. The Emperor of Russia has acceded to the treaty negotiated here in January last for the security of trades marks in the inter est of manufacturers and commerce. I have invited his attention to the importance of establishing, now while it seems easy and practicable, a fair and equal regulation of the vast fisheries belonging to the two na Lions in the waters of the North Pacific ocean. The two treaties between the • United States and Italy for the regulation ofconsu lar powers and the extradition ofcriminals, negotiated and ratified here during the last session of Congress, have been accepted and confirmed by the Italian Government. A liberal consular convention which has been negotiated with Belgium wilt be submitted to the Senate. The very important treaties which were negotiated between the United States and North Germany and Bavaria, for the regulation of the rights of naturalized citizens, have been duly ratified and exchanged, and similar treaties have been entered into with the Kingdoms of Belgium and Wurtemburg, and with the Grand Duchies of Badeu and Hesse-Darmstadt. I hope soon to be able to submit equally satisfactory conventions of the same char acter now in the course of negotiation with the respective Governments of Spain, Italy, and the Ottoman Empire. Examination of claims against the United States by the Hudson's Bay Company and the Puget's Sound Agricultural Company, on account of certain possessory rights iu the State of Oregon and Territory of Wash ington, alleged by those companies in vir tue of provisions of the treaty between the United States and Great Britain of June 15, 1846, has been diligently prosecuted, under the direction of the joint interna tional commission to which they were sub mitted for adjudication by treaty between the two Governments of July Ist, 1863, and will, it is expected, be concluded at an early day. No practical regulation concerning colo nial trade and the fisheries can be accom plished by treaty between the United States and Great Britain until Congress shall have expressed their judgment concerning the principles Involved. Three other questions however, between the United States and Great Britain remain open for adjustment. These are the mutual rights of naturalized citizens, the boundary question involving the title to the island of San Juan, on the Pacific coast, and mutual claims arising since the year 1853 of the citizens and sub jects of the two countries for injuries and depredations committed under the authori ty of their respective Governments. Nego tiations upon these subjects are pending, and I em not without hope of being able to lay before the Senate, for Its consideration during the-present session, protocols calcu lated to bring to an end these justly-excit ing and long-existing controversies. We are not advised of the action of the Chinese Government upon the liberal and auspicious treaty which was recently cele brated with its plenipotentiaries at this cap ital. Japan remains a theatre of civil war, marked by religious rncidents and political severities peculiar to that long• isolated em pire. The Executive has hitherto main tained strict neutrality among the bellige rents, and acknowledges with pleasure that it has been frankly and fully sustained in that course by the enlightened concurrence and co-operation of the other treaty Pow ers, namely : Great Britain, France, the Netherlands, North Germany and Italy. Spain having recently undergone a revo- lution marked by extraordinary unanimity and preservation of order, the Provisional Government established at Madrid has been recognized, and the friendly inter course which has so long happily existed between the two countries remains un• changed. I renew the recommendation contained in my communication to Congress dated the 18th July last—a copy of whicu accom panies this message—that the judgment of the people should be taken on the propriety of so amending the Federal Constitution that It shall provide— let. For en election of President and Vice President by a direct vote of the people, in stead of through the agency of electors, and making them ineligible for re-election to a second term. 20. For a distinct designation of the per son who shall discharge the duties of Presi dent, in the event of a vacancy in that office by. the death, resignation, or removal of both the President and Vice President. 3rd. For the election of Senators o f the United States directly by the people of the several States, instead of by the Legisla tures; and 4th. For the limitation to a period of years of the terms of Federal judges. Profoundly improved with the propriety of making these important modifications in the Constitution, I respectfully submit them for the early and mature consideration of Congress. We should as far as possible re move all pretext for violations of the or ganic law, by remedying such imperfec tions as time and experience may develop, ever remembering that "the Constitution which at any time exists, until changed by an explicit and authentic act of the whole people, is sacredly obligatory upon all." In the performance of a duty imposed upon me by the Constitution, I have thus communicated to Congress information of the state of the Union, and recommended for their consideration such measures as have seemed to me necessary and expedi ent. If carried into effect, they will hasten the accomplishment of the great and bene ficent purposes for which the Constitution was ordained, and which it comprehensive ly states were "to forma more perfect Union establish justice, insurejlomestic tranquil ity, proilde for the common defence, pro mote the general welfare, and secure the blessings of liberty to ourselves and our posterity." In Congress are invested all legislative powers, and upon them devolves the responsibility as well for training un wise and excessive laws, as for neglecting to devise and adopt measures absolutely demanded by the wants of the country. Let us earnestly hope that before the expi ration of our respective terms of service, now rapidly drawing to a close, an all-wise Providence will so guide our counsels as to strengthen and preserve the Federal Union, inspire reverence for the Constitution, re store prosperity and happiness to our whole peoplejand promote "on earth peace, good will toward men." ANDREW JOHNSON. WAsamcvrow, Deo. 9, 1868. Twenty.five of the female clerks in the Treasury Department at Washington were dismissed on Monday, and further dismis sals are intended. NUMBER 50 Report of the Comptroller of the Cur The Comptroller of the Currency, in his annual report to the Secretary of the Trea sury, show that there are 1,629 national banks in active operation, with a circula tion within a fraction up to the legal limit of three hundred millions. Twelve national banks have been organized since the last annual report, 11 ve of which are new associa tions. Fourteen national battks have failed to redeem their circulating notes and were put into the hands of receivers. The loans and discounts made by the national bank ing associations amount to $3,351,004,663. The Comptroller recommends several re forms in the national banks. Ono is an amendment to the act creating these SSSO ciations, authorizing the Comptroller to call upon the banks for live detailed state ments or reports during each year. fixing upon some day that is past for the date of the report. He argues that the day speci tied quarterly for the reports being known In advance, the banks prepare for them by a process of operations which do not present their actual working condition And here he takes occasion to condemn the banks for lending themselves to com binations and speculations for affecting the money market, and particularly tile pr ac tire of the New York Banks in issuing cer tified checks to Wall street operators. He remarks—" Taking the cull loans anti the certified checks together. the somewhat startling fact is developed that the New York national banks furnish (daily) seventy million dollars of capital anti our hundred and twelve million dollars of credit ior speculation." lie urges the establishment of a central redeeming agency, by !neat. it which the national bank notes shall be re deemed and made convertible into the law ful money of the country, whether it be paper or gold, at the principal centre , of trade. To prevent panics and speculators locking up the currency and to supply a sufficient and equable circulating medium he recommends that. the Treasury of the United States shall hold in reserve a certain amount of legal tender notes in excess of the amount in regular circulation, its a source of relief, and to be let out In times of stringency, something in the sane wily that the British Chancellor of the Exchequer authorises at times the Bank of England to issue more notes than is strictly prescribed by its charter. Of course the Com pthiller urges,a return of specie payments, but dues DOE UM us when this can be brought about, and prudently Intimates that we must be careful what steps are taken to that end. He favors tree banking as soon as the re strictions imposed upon the issue of circu lating notes by national banks may be safely removed. He concludes by saying that with regard to the currency and bank ing the business public of the United States is the only competent judge. I he War Department Report Secretary Schofield, In his annual report, says the strength of the army on Septum bet- 30 was 48,001, which by January will be reduced by expiration of term of service' alone to about 43,000. No recruiting, is in operation except cavalry service. All vol unteer officers except one have been mils teied oui oraerviee. At the suggestion of General Sherman, authority was given on I October 6 for the muster in of one regiment of volunteer cavalry from Kansas, whose service is not expected to exceed six months, for service against the Indians, it may, the Secretary says, be reasonably ex pected that n considerable reduction of the army may be made within the next year. He recommends such reduction be au thorized by law to be made gradually ' by ordinary casualties, by discharge of incompetent officers and by consolida tion of regiments. The Secretary also re commends that the four regiments of veter an reserves be disbanded, officers unlit for service to be retired and others to be trans ferred to active regiments. The teeth of'! enlistment ought to be increased to 5 years. The disbursements of the pay del= tment during the last fiscal year amount to $30,- 000,000. The disbursements for reconstruc lion have been $2,500,000. Bounty claims I to the extent of $25,000 000 have been pad. I It is estimated that $65,602,300.85 Will bo required for the War Departmen the next fiscal year. Estimated deficiencies for the current year are, however, $13,975.000. In speaking of the Indian war, Secretory Schofield says it is proved beyond ulspute that it was begun by the Indians without any provocation whatever. Its object is supposed to be the abandonment of the Smoky Hill route, which are the best hunt ing grounds in America. and the Secretary endorses General Sherman's remedy to se cure peace—namely, coercion. The rest of the War report is an unimportant review of the military districts, which has been an ticipated by the publication of the reports of the district commanders. Report of the Secretary of the Navy Mr. Welles communication a lentfthy re port, from which it appears that the total number of vessels borne upon the rolls (d* the navy is 206, carrying 1.743 guns. Their present location and employment are point ed out. The European Squadron, consist ing of the Franklin (flagship), 39 guns; Ti conderoga, 9 guns ; Swatarn, 10 guns ; Fro lic, 5, guns, and Guard (rtoreship), 3 guns, has been under command of Admiral Far ragueuntil his recent return to New York. Rear Admiral Radford has been designated I to take command. A history of its cruises ' for the last year is given. The Asiatic Squadron, composed of nine vessels, carry ing 82 guns, was under the command of Rear Admiral Bell up to the date of his drowning, January 11, 1868, since which time it has been in command of Rear Ail miral Rowan. This squadron has been cruising principally in Chinese and Jap anese waters. The North Atlantic Squad ron, commanded by Rear Admiral Pal mer to the date of his death, Decem ber 7, 1867, is now in charge of Roar Admi ral Hold, and is composed of six vessels, carrying 51 guns. It has been actively out played in the Gulf of Mexico and among the West Indies. The South Atlantic Squadron, under command of Rear Ad miral Davis, is composed of live vessels, carrying 49 guns; two of the vessels, how ever, have been ordered home. The cruis ing ground of the squadron is the east coast of South America, the Southern Ocean, and the west coast of Africa. Rear Admiral Thatcher commanded t,..e North Pacific Squadron until August 6, when it was transferred to Rear Admiral Craven. It consists of eight vessels, carrying 9 guns. Most of the time or the squadron has been occupied in protecting our interests off the coast of Mexico and Central American , States as far south us the isthmus. The , South Pacific Squadron, under command of Rear Admiral Turner, who succeeded Rear Admiral Dahlgreen, comprises six ships and 47 guns. Its principal cruising ground has been the west coast of South America, though our interests around Australia and the adjacent islands are under its guardian ship. Several valuable vessels or the Pa cific squadrons have been lost by reason of the frequent earthquakes. The attention of Congress is again culled to the imperfect facilities possessed by ot.r navy-yards to meet the demand for war vessels occasioned by au emergency such as a war with any foreign power. The reforms indicated by recent acts of Congress have been brought about as fares practicable in these yards. The Naval Academy grounds have been enlarged. Under the charge of Vice Admiral Porter the utility of the institution is ,ully attested. It turned out 79 graduates during the last year, received 49 new students, and has now 286 on its rolls. The apprentice system is highly spoken of, and the decrease in the number of enlistments for this pupae ren dered necessary by retrenchment lowa is deprecated. Attention is called to the growing necessity fur additional surveys of the Pacific waters. Under acts of Congress but two of the iron-clads have been disposed of, the Ca tawba and Oneota, tor 8755,000. The Secre tary is of the opinion that they should all be sold, as their keeping involves expense, and they may be rendered useless by cor rosion before they are again needed. In vestigations instituted by the Government to secure a perfect title to the League Island purchase have been nearly completed, and ajdeed will soon pass to the Government. The names of 2,726 persons are on the navy pension rolls who received from the Government during the year 0347.031.19. The present pension fund is $14,000,000. There has been an expenditure on account of the Department during the year of 820,- 120,304.62. The resources for the current year are: Balance in Treasury,— ............. 51.,345,360 07- Appropriation account, Jane /7, 'GS 17,3 /A1,a50 Ou Total S 3 /,701,71u Nstimate expenditure forthe year ending June 30, 1870, $20,993,414.59. The Sehretary elosesihls report with a brief review of the stormy period he has held office, and the arduous labors It imposed upon his depatt• meat. Report of the Commissioner of Internal r1=1:02 It will be seen by the report of the Com missioner of l,nternal Revenue, that in the fiscal year ending June 30, 1868, the sum of one hundred and ninety one million dol lars was collected from internal revenue, the expense of collecting which was five per cent. The heavy items in this account are the taxes paid on the indulgence of pop ular appetite. The amount received, for instance, from the tax on chewing and smoking tobacco was, in round numbers, fifteen millions of dollars. All the railroads paid together less than seven millions, the Insurance companies less than two millions, and the telegraph and express companies not a million between them, so that chew ing and smoking tobacco—our small vices, as the are called—are really " bigger things" In the Commissioner's report than all the railroads, telegraphs or express and insurance companies in the United States taken together. The number of cigars taxed was six hundred millions. The tax on'distilled spirits and brandy netted four teen millions, and other liquors run the total of the figure on stimulants to fully twenty millions. It is estimated by the Commissioner that the income from Inter nal revenue for the next fiscal year will RATE OF. ADVERTISING InfiNT.BB ADVERTIMMENTI, $l2 a year per quart, or ten lines; $0 per year for each ad ditional vinare. REAL EBTATZ ADVICELTIBING, 10 Offiltli . llm e far the first, and 5 splits for each en bsequisit In sertion. GILWERAL ADVERTISING 7 cents a Me for the firs!, and 4 cents for each subsequent loser- Uon. SPECIAL NOTICES Inserte \ Vn Local Column 15 cents peullne. Bermai. NOTICES preceding marriages and deaths, 10 cents per line for nret insertion ( and 6 cents for ovary subsequent insertlonl LEGAL AND oMis a rforicse— Executors' Administrator.' 2.60 Asaignees' notices,---.---....—. 2.50 Auditors n0tice5,........._......200 Other "Notices,' ten lines, or less, three times 1.50' reach one hundred and forty.five million dollars. Some important recommendations are made in the report—among them one urging the erection of this portion of the Treasury Department into a department by itself. Report or the Postmaster General The annual report of PostmssterGeneral Randall is interesting, although the leading filets have been anticipated. The ordinary revenue far the year ending June 30, slightly exceeded sixteen and a quarter millions of dollars, white the expenditures amounted to nearly twenty-two find three quarter millions, thus leaving a deflcleney of over six mllih ns. Congressional appro priations, however, reduce these figures to a deficency of not quite three quarters of a million of dollars. if It even does not do away with the admitted fact that the ex penses of the Postutllee Department are about one dollar and forty cents to every dollar received. Mr. Randall does not be lieve that the postal service should he made self-sustaining for fifty veers to route. lie estimates that ten yearg- hencethe expenses will be forty millions and the receipts only thirty millions, but he expresses the faith that when the country is fully developed there will be no delicieneles for Congress to supply. On the past year's business of the Department, the recommendattions and suggestions, the report is quite full and In teresting. Report of the Secretary of the Interior The report on the whole will be admitted to be satisfactory. It appears that 6,603,- 71250 acres of public lands have been dis posed of, thus leaving still in the hands of the Government 1,4115,36.670 acres. Otto Revolutiaua•y soldier is still living. Dur ing the last fiseal year there wait paid to ili tvlfid soldiers and dependent rela tives the sum of $23 115.0 593 and to navy invalids the NMI. Or $:152,383. That part of be report whu•lt refers to the Paeltle rail road will lie found at once Interesting and instructive. It has already cost a largo sum .if money to the tuition, but the result trill be eue of the triumphs of the age. To cued States marshals has been paid /1,- 337,n t.: anti to dtstrie•t attorneys, assistant's, ate., and United States Viiitilillei.9lol.lol,l the aggregate• amount of $1,700,177. The See• retary dreads a deficit unless the Slues ho increased. uh,ing part of the report, which treats of residences for the President and Vice President and the heads of the executive departments, Will be read by all with interest, by some with approval and by others with doubt. Xtooflaud'o Orrman itters. LI OUFLA IND'S G ERTL urrrEits, 1100FLAND'S GERMAN TONIC The Great Remldles for all Diseases of the 3.1% . STOM A CII, OR DIU ESTIVgt; 11001 , 1,A N IrS ERNI AN BITTERs Elie pure Jui cum (ur, . [tiny are medicinally [trilled,l Extruct.) of Rome, lien Us and Barks, 1,1 Mg a propara- I ion, highly cnneen [rated, and entirely JYee from alcoletilte rubrat,kture of tiny kind. HOOFLA ND'H (JERMAN TONIC, Ix a combination of all tile IngredionUf of 11111ers. willi Iba pureed qualify of Morels (t, Rims, ()range, &c., making ono of tile f (Jost nleamint and agree,dne remedlex ever offered to !he public. Thoffe preb•rrlng a Medicine free from Alco belle admixture, will use 1 - 100FLAND'ci GERMAN 11117 E RS Thome who have au older, lull In Lae colabl nation ~1 the Hitters, as minted, will me HOOFLAND'S GERMAN TONIC. They are butlt equally good, and contain the sawn medicinal vlrl.uem, tile elluleu between tile twO a terra matter ot tante, the Tonle helm; the must palatable. The ..breach, I min at variety of mum., much tu+lumligt atluu , Dympopmtit, Nervoris Debility, etc., Is very apt po have Ile function,. deranged. Tha Liver, ...yin!. \ Dazing am clomoly Iw I t eI. wit h L oil 4,1 ouch , then be comem affected, tilt result ol which In that 1.110 patient. nutters Irmo several or mare of Lilo fol. owing dimeamem Countlptalon, Flatulence, I nwara Ft , ne..x of Blood to the Ilea I, Acidity of We. 8101111.11, Nall.ll, Heartburn, Dia4ust near nurn, Ding L for Food, ' , Aloe,. of Weigh In the Stomach; Sour Erna:tallow:l, sinking or Fluttering at the Lit of the Stoinseh SWlnonlng of the Head, I I urged or Inllhmlt Weal h. ;log, Fluttering al, the Heart, Choltlxig of: Suffocating Hennations When In +1 Lying Pstore, Don neon of Vinton, DOW or Webs be fore the Sight, hull Pala In thin Head, MINCEIG=IZMOMIEMMIM the hkin and Eyes ' Bain lit the Hide, (lack, Chest, Limits, etc., Sudden Flushes of htmla, Burning in the Flesh, Cont.:it Imaginings of Evil, and Great Depression of !spirits. The sufferer from these diseases should ex ercise the greatest caution In the selection ore remedy for his cuse, ptirchoting 4411; that winch he Is assured trout his in vestige- LIONS land Inquiries ki possesses true merit, is skilfully compounded, is tree from Injurious Ingredients, anti has established for Itaelf to Ullitin (Or Ble cure of liar.. dIHNUteli. In tills COM...CM/11 we WUUId eu Until those Well- IFuown remedies— HOOFLAND'S GERMAN BITTERS HOOFLAND'S GERMAN TONIC PREPARED BY Dr. C. M. JACKSON, Twenty-two yearn deco they were first in trot, d Into this country bout lieru.ny, dor log which time they have undoubtedly per (op iced more cures, /Mit beuelltted culturing hu Mall I ty to a greater extent, time auy other remedies known to the public. These remedies will ettbctually cure Liver Coruplamt,J.oliallee, Dymbepnla, I broulc or Nervous Dint rho. U Disease of tile Kid neys, anti Illseasem arising from Disor• dertd Liver. Mionutch or Intestines. DEBILITY, ResnWog from any Cause whatever PIOLI,TRATIoN OV THE SYSTEM, Induced by S were labor, Hard ■hllls, Lzposure, Fevers, &c. There is no medicine extant equal to them remedies in such cases. A tone arid vigor Imparted to Lite whole system, the appetite Is mtreugiliened, food Is enjoyed, the stomach digests promptly, the blood In purified, the COM, plexlou becomes mound and heartily, the yellow tinge Is eradicated from the eyes, a bloom Is given to Ilie cheeks, and the weal. and nervous invalid becomes a strong and healthy being. PER:iII:NS ADVANCED IN LIFE, Aud (sew'', the hand of time weighing hesvl ly upon them, with all Ito bud ill the use el this 1111 Tlift:3, or the TON lc, an elixer that will Instil hew life into their veins, restore In a moasure the energy and ardor 01 more youthful days, build up their shrunken lorms, and hive health and happi ness to their remaining years, NOTICE. It In a well-established lent that rally one ltall of the qtronie portion or our popalatlolt e neltlont the en L J oy meat or Jowl health; or, hi ace their own ex presmittin "never feel well." They are languid, devoid of all energy, extremely 11er,31.18,/tri haven() appetite. - To thin clauttor penman the 11177E11,3, or the TONIC, In ehpectully recommended. WEAK AND DELICATE CHILDREN, Are made strong by the use of either of the , e remedies. They will cure every cane of MAU - ASMUs Without fall. TMm-auds of certificates have accumulated In the hands of the proiwiet , r, but space Will al Ow of the putilleallon of but few. Those, it will he ottser Cii,are men of note and Ut suca standlng that they mnsl be believed. T EsTimos IA LS. HON. OEO. W. VOAJDWARD Chief Juaact of the upr eq. CI., of Po., r I te, Philadelphia, NI arctl 1,3117. "1 ttnd ' Hont liernmn Bittern' la a 10X , . I Coale, Inddal I u din-A elt.nex of the dlgentl vi. li t organm, and of great ln c~wen id le6i Illy, and want of Lervoum action In tie gynlent. Yours, Only, (.4F.0. W. WOODV7ARD.'i Judge of the /Supreme rt Cbu Of ewrvrcinia. PhiLacle(agea, April 1808 "I consider lioutland's German 131Lte , s ' valuable medicine in case of aLtaului of 'Lunges. Lion or Dyspepsia. I can certify this from my experience of it, Yours, with respect, JAMXB ILIOMPSON." Fablt Hey. JOSEPH H. K.ENNAII.D.• D. I' 'tutor of the 'I enth Haptut °lurch, Philadelphia Dr. Jackson—Dear Sir: I have been irequent ly requested tocoo nect my name with recom mendations of different kinds of medicines, but regarding the practice as out of my appro priate sphere, I have In all cases declined; but with a clear proof In M various instances and particularly In 11 my own family, of the useluluens of Dr. tiooflaud's German Bile ters, I depart for once from my usual course, to express my full conviction that, /or general debiltly of the system, and especkalji for Liver Conipmint, d tan sale and two/indite preparalion. In some cases it may fall; but tu+nally,l doubt not, it will be very ifenenclal to those who suJ. for from the above causes, Yours, very respectfully, J. H. KENNARD Eighth, below Coutes St. FROM Itsv. E. D. FENDALL. - - _ Assistant Editor Christian CArontcle, Philade/phia I have derived decided benefit from the use of HooWand's (fern an Bitters, and feel It nay privilege to recommend them as a most valtm bm tonic, to all who are suffering from general debility or from diseasesarising tromderange ment of the liver. boars truly, E. D. E . CAUTION Hoofland's German Remedies are counter. J fe A n C ed leriO s ti is dteot the D aignittn:3 of C. M. wrapper of each hot.. tie. All others are counterfeit. Principal Office and Manufactory at the Ger man Medicine store, N0..031 ARCH Street Philadelphia Pa. (,HARLEM M. EVANS, Proprietor, Formerly C. M. Jecxsort a Co. PRICES Hootland'a Gorman Bitters, per bottle $l.OO • half dozen 5.00 Hoolland's German Tonic, put up in quart, but Gee, 51.50 per bottle, or a half eozu.,,for 57.50. sar Do not lorgettoozamine well the article you buy, in or ,r to get the genuine. For sale by LP. 'eta and Dealers In Medi. nines •,very w an 71 QuEEN OF ENGE.ARD SOAP. QULEN OF E %OLAND BOA.P. • QU PIN OF ENW.n - n SOAP For doing a lamilv wash•na In the beat and cheapest manner. Oua anteed equal to any In the world I Rae all the strength of old mein .oap with the mild and latherl qualitlea of genuine Castile. Try this splen ddosp. Bold by the ALDEN CHEMIOAL WO 4allorth FrOnt tree% Philadelphia. iiepl EMZE!=I