itadfottl Towauda, Thursday, December 7, 1865. COXGKKSS. The Senate met ut uoon. Monday, and was called to order by Mr. FOSTER. President pro tem. Prayer was offered by Rev. PI . GRAY. The credentials of Mr. POLAND, of Vermont, elected to fill the vacancy occasioned by the death of Senator COI.LAMEB, were then presented, and he was sworn. Mr. 11 RIOIIT piesented tin credentials of Mr. STOCKTON. Senator elect from New-Jersey. A protest from members of the New-It rsey Legislature was also presented, which alleges that a majority of that body had not voted for Mr. Slot TON, and that consequently he was not elected. The protest was ordered to lie on the table, and Mr. STOCKTON took the oath. Sciiai r SUMNER tin n introduced several bills bear in" on the subject of reconstruction, which were ordered to be printed. A bill to regulate the elec tive franchise in the District of Columbia was iu i ioduvt dby Mr. IV APE. 'of Ohio, and ordered to be printed. Mr. HARRIS, of New York, introduced a bill to regulate the judiciary of the I'nit d State*, ■ hich was ordered to be printed. Mr. WILSON, ot Massachusetts, introduced a bill to maintain the I'lt-t dom of the inhabitants ot the State declared in rebellion, which was ordered to be printed. Lhe Senate then adjourned. in the House, the Clerk of the late house pro ceeded Monday noon to call the roll of the meiu i.-cts , leet. When the State of Tennessee was ~iicli. Mr. MAVNARP, OI that State, desired to make remark, but the Clerk declined to listen t to him. On the completion of tin roll Mr. MAVNARP again rose to speak, but the Clerk again ruled him out of order. Mr. MORRILL, of New York, then moved that the House proceed to the election of Speaker. Mr. JAMES BROOKS, of New York, made a speech, in which he characterized the omission of the names ot the members from Tennessee as uttpre c; dent and unjust. The House took no notice of the subject, but under the operation of the pre . ions question proceeded to the election of Speak er. Hon. SCHUYLER COLI AX, of Indiana, and Hon. ■T \MF.S BROOKS, of New York, were put in nomina tion, and the House proceeded to vote, with the following result : For Mr. COLFAX, 139: for Mr. BROOKS, 3">. Mr COLFAX was declared elected, and was conducted to the chair by Messrs. MORRILL and BROOKS, when he returned thanks for the hon or conferred in a brief and eloquent speech. He then took the oath of office, and afterwards ad ministered it to the members, who were called up by delegations. A resolution was then adopted, dn your and their undivided approbation, nil NATURE OF EL'R UNION— ITS POWERS, lit'TIEH AMI LIMITS. Hie Union of the united States of Amer ica was intended by its authors to last as lung as the States themselves shall last.— • TIIK I NION SHAM, BE PERPETUAL," are the words (it the Confederation. "To FORM A MORE PERFECT UNION," by an ordinance ol tin- I cited States, is the declared purpose ol the constitution. The hand of Divine IT. vidence was never more plainly visible ii: the affairs of men than in the framing and the adopting of that instrument. It is beyond coriipansou, the greatest event in American history : ami indeed is it not, of all vi nts in modern times, the most preg nant with eon sequences fur every people ol the earth? The members ol the conven tion which prepared it, brought to their work the experience of the Confederation, of their several States, and of other repub lican governments, old and new ; but they needed and they obtained a wisdom superi or to experience. And when tor its validi ty it required the approval of a people that occupied a large part of a Continent and acted separately in many distinct conven ts ns, what is more wonderful than that, alter earnest contentions and long discus sions, all feelings and all opinions were ul timately drawn in one way to its support. The constitution to which life was thus imparted contains within itself ample re sources for its own preservation. It lias power to enforce the laws, punish treason, and insure domestic tranquility. Ir. case of the usurpation of the government of a State by one man, or an oligarchy, it be comes the duty ol the United States to make good the guarantee to that State of a republican form of government, and to so maintain the hornogeneousuess of all.--- Does the lapse of time reveal defects ? A simple nwdc of amendment is provided in tl" constitution itself, so that its conditions van always he made to conlortn to tlie re tpiirt incuts of advancing civilization. No loom is allowed even for the thought of a possibility of its coming to an end. And these powers of self-preservation have al ways been asserted in their complete integ by every patriotic Chief Magistrate— by .JKKFKRSON and JACKSON not less than by WASHINOTON and .MADISON. The parting ad vice of the Father of Country, while yet President, to the people of the United States, was, that "the free constitution, which was the work of their Lands, might le sacredly maintained and the inaugur al words of I'rcsideat J KKKEKSOX held up tl< preservation of the Ccneral (Jov eriimein, in iis constitutional vigor, as the sheet-anchor ot our peace at home and safe ty abroad I'he constitution is the work ol " I lie People „t the United States," and it should be as indestructible us the Peo ple. It is not strange iliat tie- trainers of the coiisiimtion which had n model in tlie past, should not have fully comprehended the excellence of their own work. Fresh from a struggle against arbitrary power, many patriots suffered from harassing tears of an absorption of the State Governments by the General Government, and many from a dread that the States would break away from their orbits. But the very greatness ol our country should allay the apprehen sion of encroachments by the General Gov ernment. The subjects that come unques tionably within its jurisdiction are so nu merous that it must ever naturally refuse to be embarrassed by questions that lie be yond it. Were it otherwise, the Executive would sink beneath the burden ; the chan nels of justice would be choked ; legisla lation would be obstructed by excess ; so that there is a greater exemption to exer cise some of the functions of the General Government through the States than to trespass on their rightful sphere. " The absolute acquiescence in the decisions ot the majority" was, at the beginning of the century, enforced by JEFFERSOX " as the vi tal principle of republics," and the events of the last four years have established, we will hope forever, that there lies no appeal to force The maintenance of the Union brings with it " the support of the State Govern ments in all their rights but it is not one of the rights of any State Government to renounce its own place in the Union, or to nullify the laws of the Union. The largest liberty is to be maintained in the discussion of the acts of the Federal Government ; but there is no appeal from its laws, except to the various branches of that Govern ment itse f, or to the people, who grant to the members of the Legislative and of the Executive Departments no tenure but a limited one, and in that manner always re tain the power of redress." " The soveriegnty of the States" is the language of the Confederacy, and not the language of the constitution. The latter contains the emphatic words : " The cons titution, and the laws of the United States which shall be made in pursuance thereof, and all treaties made, or which shall be made, under the authority of the United States,shall be the supreme law of the land; and the Judges in every State shall be bound hereby, anything in the constitution or laws of any State to the contrary not withstanding. Certainly the Government of the United States is a limited government; and so is every State Government a limited govern ment. With us, tiiis idea of limitation spreads through every form of administra tion,general,State, and municipal,and rests on the great distinguishing principle of the rights of man. The ancient republics ab sorbed the individual in the State, prescri bed his religion, and controlled his activity. The American system rests on the asser tion of the equal right of every man to liie, liberty and the pursuit of happiness ; to freedom of conscience,to the culture and exercise of all his faculties. As a conse quence, the State Government is limited, as to the General Government in the inter est of Union, as to the individual citizen in the interest of freedom. States, with proper limitations of power, are essential to the existence of the Con stitution of the United States. At the very commencement, when we assumed a place among the Powers of the earth,the Declara tion of Independence was adopted by States; so also were the Articles of Confederation ; and when "the People of the United States" ordained and established the constitution, it was the assent of the States, one by one, which gave it vitality. In the event, too, of any ameidineut, to the constitution, the proposition of Congress needs the confir mation of States. Without States, one great branch of the legislative government would be wanting. And, it we look beyond tin letter of the constitution to the charac ter of our country, its capac'ty for compre hending within its jurisdiction a vast conti nental empire is due to the system of States. The best security for the perpetual exis tence of the States is the "supreme author ity" of the constitution of the United States The perpetuity of the constitution brings with it the perpetuity of the States ; their mutual relation makes us what we are, and in our political system their con nection is indissoluble. The whole cannot exist without the parts, nor the parts with out the whole. So long as the Constitu tion of the United States endures, the States will endure ; the destruction of the one is the destruction of the other; the preserva tion of the one is the preservation of the other. I have thus explained my views of the mutual relations of the constitution and the States, because they unfold the princi ples on which I have sought to solve the momentuous questions and overcome the appalling difficulties that met me at the very commencement of my administration. It has been my steadfast object to escape from the sway of momentary passions, and to derive a healing policy from the funda mental and unchanging principles of the constitution. 1 found the States suffering from the ef fects of a civil war. Resistance to the Gen eral Government appeared to have exhaust ed itself. The United States had recovered possession of their forts and arsenals ; and their armies were in the occupation of every State which had attempted to secede. Whether the territory within th ■ limits of those States should be held as conquered territory, under military authority emanat ing from the Peesident as the head of the Army, was the first question that presented itself for decision MILITARY GOVEXMENT. i Now, military governments, established ; for an indefinite period, would have offered ; no security for the early suppression of dis j content ; would have divided the people j into the vanquishers and the vanquished ; ; and would have envenomed hatred, rather than have restored affection. Once cstab , lishcd, no precise limit to their continuance i was conceivable. They would have occa i sioned an incalculable and exhausting ex ; pensc. Peaceful emigration to and from . that portion of the country is one of the ! best means that can be thought of for the • restoration of harmony ; and that emigra tion would have been prevented ; for what I emigrant from abroad, what industrious t citizen at home,would place himself williLg ,ly under military rule? The chief persons , who would have followed in the train of the army would have been dependents on the General Government, or men who ex pected profit from the miseries of their er ring fellow-citizens. The powers of patron age and rule which would have been exeer | cist-d, under the President, over a vast, and populous, and naturally wealthy region,are j greater than, unless under extreme neces-1 sity, I should be willing to intrust to any one man ; they are such as for myself I j could never, unless on occasions of great ; emergency, consent to exercise. The will ful use ot such powers, it continued thro' \ a period ot years, would have endangered 1 the purity ot the General Administration and the liberties of the States which re- \ tnaiued loyal. Besides, the policy of military rule over a conquered territory weuld have implied that the States whose inhabitants may have taken part in the rebellion had, by the acts of those inhabitants, ceased to exist. But j the true theory is, that all pretended acts ! of secession were, from the beginning, null and void. The States cannot commit treas- on, uor screen the individual citizens wli<> may have committed treason.any more than they can make valid treaties, or engage in lawful commerce with any foreign power. The States attempting to secede placed themselves in a condition where their vital ity was impaired, but not extinguished— their functions suspended, but not desloy ed. But if any State neglects or refuses to perform its offices, there is the more need that the General Government should main tain all its authority, and, as soon as prac ticable, resume the exercise of all its funct ions. On this principle 1 have acted, and have gradually and quietly, and by almost imperceptible steps, sought to restore the rightful energy of the General Government and of the States. To that end, Provision al Governors have been appointed for the States, conventions called, Governors elect ed, Legislatures assembled, and Senators and Representatives chosen to the Congress of the United States. At the same time, the courts of the United States, as far as could be done, have been reopened, so that the laws of the United States may be en forced through their agency. The blockade has been removed and the custom-houses re-established in ports of entry, so that the revenue of the United States may be col lected. The Post-office Department renews its ceaseless activity, and the General Gov ernment is thereby enabled to communicate promptly with its officers and agents. The courts bring security to persons and prop erty ; the opening of the ports invites the restoration of industry and commerce ; the post-office renews the facilities of social in tercourse and of business. And is it not happy for us all, that the restoration of each one of these functions of the General Government brings with it a blessing to the States over which they are extended ? it is not a sure promise of harmony and re hewed attachment to the Union that, after all that has happened, the return of the General Government is known only as a beneficence? I know very well that this policy is at tended with "some risk ; that tor its success it requires at least the acquiescence of tin; States which it concerns ; that it implies an invitation to those States, by renewing their allegiance to the United States, to re sume tneir functions as States of the Union. Hut it is a risk that must be taken : in the choice of difficulties, it istho smallest risk; and to diminish, and, if possible, to remove all danger, I have lelt it incumbent on me to assert one other power of the General Government —the power of pardon. As no State can throw a defence over the crime of treason, the power of pardon is exclu sively vested in tin' Executive Government of the United States. In excercisirig that power, I have taken every precaution to connect it with the clearest recognition of the binding force of the laws of the United States, and an unqualified acknowledgment of the great social change of condition in regard to slavery which lias grown out of the war. THE N'EKL) OF JIITL'AL. CON< ESSIONS MEASURES FOR RECONSTRUCTION. The next step which I have taken to re store the constitutional relations of the States, has been an invitation to thein to participate ir; the high office of amending the constitution. Every patriot must wish for a general amnesty at the earliest epoch consistent with public safety. For this great end there is need of a concurrence of all opinions, and the spirit of mutual con ciliation. All parties in the iate terrible conflict must work together in harmony Is it not too much to a*k, in the name of the whole people, that, on the one side, the plan of restoration shall proceed in confor mity with a willingness to cast the elisor ders of the past into oblivion ; and that, on the other, the evidence of sincerity in the future maintenance of the Union shall be put beyond any doubt by the ratification of the proposed amendment to the constitu tion, which provided tor the abolition of slavery forever within'the limits of our country. So long as the adoption of this amendment is delayed, so long will doubt, and] jealousy, and uncertainty prevail. This is the measure which will i llace the sad memory of the past ; this is the meas ure which will most certainly call popula tion, and capital, and security, to those parts of the Union that need them most, indeed, it is not too much to ask the States which are now resuming their places in the family of the Union to give this pledge of perpetual loyalty and peace. Until ii is done, the past, however much wo may de sire it, will not be forgotten The adop tion of the amendment reunites us beyond all power of disruption. It heals the wound that is stili imperfectly closed ; it removes slavery, the element which lias so long per plexed anil divided the country ; ii makes of us once more a united people, renewed and strengthened, bound more than ever to mutual affection and support. The amendment to the constitution being adopted, it would remain for the States, whose powers have been so long in abey ance, to resume t'leir places in the two branches of the National Legislature, and thereby complete the work of restoration Here* it is for you, fellow citizens of the Senate, and for you, fellow-citizens of tin* House of Representatives, to judge each •>!' you for yourselves, of the elections, re turns, and qualification of your own mem bers. The full assertion of the powers of the General Government r 'quires the holding of Circuit Courts of the United States with in the districts where their authority lias been interrupted. In the present posture of our public affairs, strong objections have been urged to holding these courts in au\ of the States wiie, l' the rebellion has exis ted ; audit was . -eertiiiqed, by inquiry, | that the Circe.. Courts of the 1 ui'ied States i would not be held within the District of ! Virginia during the Autumn or early Win ' tor, nor until Congress should have " an ' opportunity to consider and act on the | whole subject." To your deliberations the j restoration of this branch ot the civil au ; thority of the United States is therefore ' necessarily referred, with the hope Mat early provisions will be made f< .r the re sumption ol all its functions. It is mani fest that treason, most flagrant in charac ter, has been committed. Persons who are charged with its commission should have fair and impartial trials in the highest civil tribunals of the country, in order that the constitution and the laws may be fully vin dicated ; the truth clearly established and affirmed that treason is a crime, that trai tors should be punished and tic offence made infamous ; and, at the same time, that the question may be judicially sett led, finally and forever, that no State of its own will has the right to renounce its place in the Union. THE FREEDMEX AND THEIR RELATIONS WITH THE GOVERNMENT -QIEBTIOX OF ALLOWING THEM TO VOTE. I he relations of the General Government toward the four millions of inhabitants whom the war lias called into freedom, have engaged my most serious considera tion. On the propriety of attempting to make the frecdmeu electors by the procla mation of the Executive. 1 took for my counsel the constitution itself, the inter* | pretations of that iiiHtrimient by its authors ant its elec tors. according t<> itxnwn judgment : and, under this system, one State after another has proceeded to increase the number of its electors, until now universal suffrage, or something very near it, is the general rule. So fixed was this reservation of power in the habits of the people, and so unquestioned has been the interpretation of the constitution, that during the civil war the late President never harbored the pur pose—certainly never avowed the purpose —of disregarding it ; ami in the acts of Congress, dining that period, nothing can be found which, during flic continuance ol hostilities, much less after their close, would have sanctioned any departure by the Executive from a policy which has so uniformly obtained. Moreover,* a conces sion of the elective franchise to the freed nien, l>y act of the President of the I nited States, must have been extended to all colored men, wherever found, and so must have established a change of suffrage in the Northern, Middle and Western States, not less than in the Southern and South western. Such an act would have created a new class of voters, and would have been an assumption of power by the President which nothing in the constitution or laws of the United States would have warranted. On the other hand, every danger of con flict is avoided when the settlement of the question is referred to the several States. They can, each for itself, decide on the measure, and whether it is to lie adopted at once and absolutely, or introduced grad ually and with conditions. in my judg ment, the freedmen, if they show patience and manly virtues, will sooner obtain a participation in the elective franchise through the States than through the Gen eral Government, even if it had power to intervene. When the tumult of emotions that have been raised by the suddenness of the social eh nge shall have subsided, it may prove that they will receive the kind liest usage from some of those on whom they have heretofore most closolv depen : ded. Hut while 1 have no doubt that now, af ter the close of the war, it is not compe tent for tiie General Government to extend tie-' elective franchise in tne several States, it is equally clear that good faith requires the security of the freedmen in their liberty and their property, their right to labor, and their l ight to claim the just return of their labor, i cannot too strongly urg a dispas sionate treatment of this subject, which should be carefully kept aloof from all par ly strife. We must equally avoid hasty assumptions of any natural impossibility for the two races to live side by side in a state of mutual benefit and good will. The experiment involves us in no inconsistency; let us. then, go on and make that experi ment in good faith, and not be too easily disbeaitoned. The country is in need of labor, and the freedmen are in need of em ployment. culture, and protection. While their right of voluntary migration and ex patriation is not to be questioned, J would not advise theii forced removal and colon ization. as rather encourage them to honorable and useful industry, where it may be beneficial to themselves and to the country : and, instead of h.isiv anticipa tions of the ct rtaiuty of failure, iet there be nothing' wanting to the Fair trial of the ex periment. The change in their condition is the substitution of labor by contract for tiie status of slavery. The ireedman can not fairly be accused of unwillingness to work, so loug as a doubt remains about bis freedom of choice in his pursuits, and the certainty of his recovering his stipulated wages. In this the interest of the employer and tiie employed coincide. The employer desires in iiis workmen spirit and alacrity, and these can be permanently secured in no other way. And if the one ought to be able to enforce the contract, so ought the other. The public interest will be best promoted H the several States will provide adequate protection and remedies for the frccdmeu. 1 util this is in some way ac complished, there is no chance for the ad vantageous use of their labor : and the blame of ill-success will not rest on them. I know that sincere philanthropy is eat' nest for the immediate realization of its re motest aims ; but time is always an ele ment in reform. It is one of the greatest acts on record to have brought four millions of people into i'reedom. The career of free in dustry must be fairly opened to them ; and then their future prosperity and condition, must, after all, rest mainly on themselves. If they fail, and so perish away, let us he careful that the failure shall not be attrib utable to ano denial of justice. In all that relates to the destiny of the freedmen, we need not be too anxious to read the future ; many incidents which, from a speculative point of view, might raise alarm, will quiet ly settle themselves. Now that slavery is at an end,or near its end, the greatness of its evil, in the point <;f view of public economy, becomes more and more apparent SJaverv was essen tially a monopoly ui labor, and as uch locked the .States where ii prevailed against the incoming of free industry Where la bor was the property of capitalists, the white man was excluded from employment, or had but the second best chance of (hid ing ii ; anu the foreign emigrant turned away from the region where his condition would be so precarious. With the destruc tion of the monopoly, fret labor will hasten from all parts id the civilized world t<> as sist in developing various and immeasura ble resources which have hitherto lain dor mant. The eight or nine States nearest the Gulf of Mexico have a soil of exuber ant fertility, a climate friendly to long life, and can sustain a denser population than is found as yet in any part of our country. And the future influx of population to them will he mainly from the North, or from the most cultivated nations in Europe. From sufferings that have attended them during our late struggle, let me look away to the 1 future, which is sure to be laden for them with greater prosperity than lias ever be fore been known. The removal of the mo nopoly of slave labor is a pledge that those regions will be peopled by a numerous and enterprising population, which will vie with any in the 1 nion in compactness, in ventive genius, wealth and industry. Our government springs from and was ' made for the people —not the people for the government. To them it owes allegiance, from them it must derive its courage, strength and wisdom. Rut while the? gov eminent is thus bound to defer to the pe<>- pie, from whom it derives its existence, it should, from the very consideration of its origin, be strong in its power of resistance to the establishment of inequalities. Mo nopolies, perpetuities and class legislation are contrary to the genius of free govern ment, and ought not to be allowed. Here, there is no room for favored classes or mo nopolies ; the principle of our government is that of equal laws and freedom of indus try. Wherever monopoly attains a foot hold, it is sure to to? a source of danger, discord and trouble. We shall but fulfill our duties as legislators by according " equal and exact justice to all men," spec ial privileges to none. The government is subordinate to tin? people ; but, as the agent and representative of the people, it must be held superior to monopolies,which, in themselves, ought never to be granted, and which, where they exist, must be sub ordinate atid yield fo the government. TRADE BETWEEN THE STATES. The constitution confers on Congress the right to regulate commerce among the sev eral States. It is of the first necessity, for the maintenance of the Union, that com merce should he free and unobstructed. No j State can be justified in any device to tax the transit of travel and commerce between i States. The position of many States is such that, if they were allowed to take ad vantage of it for purposes of local revenue, the commerce between States might be in juriously burdened, or even virtually pro* i hibited. It is best, while the country is j still young, and while the tendency to i dangerous monopolies of this kind is still ! feeble, to use the power of Congress so as jto pr vent any selfish impediment to the free circulation of men and merchandise. A tax on travel and merchandise, iu their transit, constitutes one of the worst forms of monopoly, and tin* evil is increased if ; coupled with a denial of the choice of route. When the vast extent of our country is con sidered, it is plain that every obstacle to the free circulation of commerce be tween the States ought to be sternly guar i ded against by appropriate legislation, within the limits of the constitution. DEPARTMENT OE THE INTERIOR. The report of the Secretary of the Interi or explains the condition of the public lands, the transactions of the Patent Office and th Pension Bureau, the management of i our Indian affairs, the progress made in ! the construction of the Pacific Railroad j and furnishes information in reference to matters of local interest in the District of Columbia. It also presents evidence of the successful operations of the Homestead Act. under the provisions of which 1,160,- 533 acres of the public lands were entered during the last fiscal year—more than one fourth of the whole number of acres sold or I otherwise disposed of during that period. | It is estimated that the receipts derived from this source are sufficient to cover the ! expenses incident to the survey and dis i posal of lands entered under this act, and that payments in cash to the extent of from forty to filly per cent, will be made by set tlers. who may thus at any time acquire title before the expiration of the period at which it would otherwise vest. The home j stead policy was established only after | long and earnest resistance ; experience i proves its wisdom. The lands, in the hands j of industrious settlers, whose labor creates i wealth and contributes to the public re -1 sources, are. worth more to the United j States than if they had been reserved as a J solitude for future purchasers. PENSIONS. The lamentable events of the last four years, and the sacrifi es made by the gal ) hint men of our army and navy, have swel led the records of the Pension Bureau to an ! unprecedented extent. On the 30th day of .June last, the total number of pensioners was 85,986, requiring for their annual pay, exclusive of expenses, the sum of $8,023,- 445. The number of applications that have been allowed since that date will require a large increase of this amount for the next fiscal year The means for the payment of the stipends due, under existing laws, to i our disabled soldiers and sailors, and to the families of .-uch as have perished in the service of the country, will no doubt be cheerfully and promptly granted. A grate- I ful people will not hesitate to sanction any measures having for their object the relief of soldiers mutilated and families made fa therless in the efforts to preserve our na i tional existence. THE POST-OFFICE DEI'ARTMEXT. ! The report of the Postmaster-General presents an encouraging exhibit of the op perations of the Post-office Department dur ing the year. The revenue of the past year from the loyal States alone exceed the max imum annual receipts from| all the States previous to the rebellion, in the sum of $6- ; 03m,091 ; and the annual average increase of revenue during the last four years, com pared with the revenues of the four years immediately preceding the rebellion, was I 83,533,845. The revenue of the last fiscal year amounted to $14,546,158, and the ex penditures to $13,694,728,1eaving a surplus of receipts over expenditures of $861,430. Progress has been made in restoring the postal service in the Southern States. The views presented by the Postmaster-General against the policy of granting subsidies to ocean mail steamship lines upon establish ed routes, and in favor of continuing the present system, which limits the compensa tion for ocean service to the postage earn ! ings, are recommended to the careful con ! sideration of Congress. THE NAVV. i it appears, from the report of the Secre tary of the Navy, that while, at the com mencement of the present year, there were i in commission 530 vessels of all classes and descriptions, armed with 3,000 guns and manned by 51,000 men, the number of ves sets at present in commission is 117, with 830 guns and 12,118 men. By this prompt reduction <>i the naval forces the expenses • ot the government have been largely dimin ished, and a number of vessels, purchased tor naval purposes from the merchant mar ine, have been returned to the peaceful pur suits of commerce. Since the suppression ot active hostilities our foreign squadrons have been re-established,and consist of ves sels much more efficient than those employ ed <•?! similar service previous to the rebel lion '! he suggestion for the enlargement ot the navy-yards, and especially for the establishment ot one in fresh water for iron-clad vessels, is deserving of consider ati-n, a-; n; also the recommendation for a different location and more ample grounds lor the Naval Academy. riEI'ARTMENT OK WAR. In the report fit' the Secretary of War, a general summary is given of the military campaigns of 1864 and 1865, ending to the suppression of armed resistance in the na tional authority in the insurgent States.— The operations of the general administrative bureaus of the War l>epaitment during the past yeai are detailed, and an estimate made of the appropriations that will he re quired for military purposes in the fiscal year commencing the 30th day of June, 1866. The national military force, on the Ist of May, 1 865, numbered 1,000,516 men. It is proposed to reduce the military estab lishment to a peace footing, comprehending 50,000 troops of all arms, organized so as i to admit of an enlargement by tilling up the • ranks to 82,000, if the circumstances of the ! country should require an augmentation ol the army. The volunteer force has already been reduced by the discharge from service ' of over 800,000 troops, and the department is proceeding rapidly in the work of further reduction. The war estimates are reduced from $510,200,131 to $33,814,401, which amount, in the opinion of the department, ' is adequate fur a peace establishment. Ihe ! measures of retrenchment in each bureau and branch of the service exhibit a diligent ; economy worthy of commendation. Refcr ; encc is also made in the report to the ueces sity of providing for a uniform militia sys j tem, and to the propriety of making suit able provision for wounded and disabled ! officers and soldiers. OCR REVENGE SYSTEM The revenue system of the country is a j subject of vital interest to its honor and prosperity, and should command the earnest consideration of Congress. The Secretary of the Treasury will lay before you a full and detailed report of the receipts and dis bursements of the last fiscal year, of the first quarter of the present fiscal year, of j the probable receipts and expenditures for ; the other three quarters, and the estimates for the year following the 30th of Juiie,lß66. ! I might content myself with a reference to j that report, in which you will liud all the | information Yeqnired for your deliberations ; and decision. But the paramount inipor-1 tance of the subject so presses itself on my j own mind, that I cannot but lay before you j my views of the measures which are re- j quired for the good character, and, I might almost say, for the existence of this people., The life of a republic lies certainly in the energy, virtue and intelligence of its citi zens ; but it is equally true that a good revenue system is the life of an organized government. 1 meet you at a time when . the nation has voluntarily burdened itself j with a debt unprecedented in our annals. Vast as is its % amount, it fades away into nothing when compared with the countless blessings that will be conferred upon our country and upon man by the preservation j of the "nation's life. Now, on the first oe- i casion of the meeting of Congress since the return of peace, it is of the utmost iinpor-; tance to inaugurate a just policy, which shall commend itself to those who come af ter us for its continuance. We must aim at nothing less than the complete efface- i ment of the financial evils that necessarily follow a state of civil war. e must en deavor to apply the earliest remedy to the deranged state of the currency, and not ! shrink from devising a policy which, with ! out being oppressive to the people, shall immediately begin to effect a reduction of the debt, and, if persisted in, discharge it 1 fully within a definitely fixed number of years. THE NATIONAL CI RRENCV. It is our first duty to prepare in earnest i for our recovery from the ever-increasing ; evils of a irredeemable currency, without a | sudden revulsion, and yet without untime 'ly procrastination. For the end we must, ! each in his respective positions, prepare 1 the way. I hold it the duty of the Execu | tive to insist upon frugality m the expen i ditures ; and a sparing economy is itself a 1 great national resource. Of the banks to which authority has been given to issue i notes secured by bonds of the United States i we may require the greatest moderation I and prudence, and the law must be rigidly I enforced when its limits are exceeded. We j may, each one of us, counsel our active and enterprising countrymen to be con ; stantly on their guard, to liquidate debts : contracted in a paper currency, and, by ! conducting business as nearly as possible on * a system of cash payments or short credits, i to hold themselves prepared to return to the standard of gold and silver. To aid ; our fellow-citizens in the prudent manage ment of their monetary affairs, the duty devolves on us to diminish by law the amount of paper money now iu circulation. ! Five years ago the bank-note circulation of the country amounted to not much more ! than two hundred millions ; now the circu | lation, bank and national, exceeds seven hundred millions The simple statement of the fact recommends more strongly than ! any words of mine could do, the necessity ' of our restraining that expansion. The grad ! nal reduction of the currency is the only measure that can save the business of the ! country from disastrous calamities ; and ' this can be almost inperceptibly accom -1 plished by gradually funding the national circulation in securities that may be made - redeemable at the pleasure of the govern ment Af.RKTLTI'KK. The Department of Agriculture, under its present direction, is accomplishing ! much in developing and utilizing the vast ! agricultural capabilities of the country, ! and for information respecting the details | of its management reference is made to ! the annual report of the Commissioner. GENERAL VIEW Of DOMESTIC AFFAIRS. 1 have dwelt thus fully on our domestic affairs because of their transcendent im portance. Under any circumstances, our | great extent of territory aud variety of ; climate, producing almost everything that is necessary for the wants, and even the : comforts of man, make us singularly inde pendent ol the varying policy oi foreign powers, and protect us against every | temptation to "entangling alliances, while at the present moment the reestablishment ' of harmony, and the strength that comes i from haruiouy, will be our best security against "nations who feel power aud for | get right." For myself, it has been and it ; will be my constant aim to promote peace and amity with all foreign nations and | powers ; and I have every reason to be i lieve that they all, without exception, are animated by the same disposition. Our relations with the Emperor of China, so re j cent hi their origin, are most friendly.— ! Our commerce with his dominions is rc ; ceiviug new developments, and it is very pleasing to find that the government of that great empire manifests satisfaction ( with our policy, aud reposes just confidence in the lairuess, which marks our inter ! course. The unbroken harmony between the United States aud the Empire of Russia is receiving a new support from an enter prise designed to carry telegraphic lines ; across the continent of Asia, through his ' dominions, and so to connect us with all Europe by a new channel of intercourse. Our commerce with South America is about to receive encouragement by a direct line lof mail steamships to the rising Empire of Jirazil. The distinguished party of men of science who have recently left our country to make a scientific exploration of the nat ural history and rivers and mountain ran ges of that region, have received from the | Emperor that generous welcome which was to have been expected from his constaut friendship for the United States, and his | well-known zeal in promoting the advance ment of knowledge. A hope is entertained that our commerce with the rich and popu lous countries that border the Mediterra nean sea may be largely increased. Noth ing will be wanting, on the part of this government, to extend the protection of our Hag over the enterprise of our fellow- citizens. We receive from tl,. p „ that region assurances of it is worthy of note that a rpe<,, i; ■ has hi ought us messages of coii'l- i,,'' the death of our late Chief Magistrate i 1 the J>ey of Tunis, whose rule im lmi. old dominions of Carthage, on i)„. coast. the i ciu.n i4.nr. Our debt is doubly secure—li,>> actual wealth and Htiil greater umlev resources of the country ; imi i., v , ; '* character of our institutions. jj )t . intelligent observers among p.,bp ornists have not failed to remark j til , public debt of a country is sate m j. tion as its people are lree ; that tin of a republic is the safest of all (j,,. Tory confirms and establishes the and is, 1 firmly believe, destined t , a still more signal illustration. Tin ' of this superiority springs not mei(.i\ the fact tiiat in a republic the nab > , ligations are distributed more v. through countless numbers in ali L -| a , of society ; it has its loot in tin eiia, of our laws. Here all men coiitribiu, the public welfare, and hear their lair v of the public burdens. During „ under the impulses of patriotism, th>- of the great body of the people, w ■ regard to their own comparative w• - • wealth, thronged to our armies and our fleets of war, and held thenim-lvi. ~ to offer their lives for the public jr. Now, in their turn, the property t M n of the countay sfiould bear their j i-; portion of the burden of taxatio; w. our impost system, through m< an- ~} increased vitality is incidental!) to all the industrial interests of I ■ the duties should he so adjusted most heavily on articles of luxury. • j the necessaries of life as free lrut . • as the absolute wants of the govcrni;. economically administered, will :,t: No favored class should demand ii from assessment, and the taxes si so distributed as not to lull unduly poor, but rather on the accumulated v. , of the country. We should look a* national debt just as it is—not as a c • ul blessing, but as a heavy burden industry of the country, to be di- i, without unnecessary delay. TREASURY affairs. It is estimated by the Secret.cy Treasury that the expendituo s |' fiscal year ending the 30th of June. ]v will exceed the receipts 5112,1 ''l d; is gratifying, however, to siat<- i u ! also estimated that the revenue ; year ending trie 30th of June, 1 s" 1 exceed the expenditures in tl ■ ;, ! slll, 082,815. This amount, i - , as may tie deemed sufficient fi-i pose, may be applied to th • red j the public debt, which, on lie. :jl-t , October, 1805, was $2,740,*51,7, ; reduction will diminish the t ; k k jof interest to he paid, and s i . i.Lr, j means of still further reduction ! whole shall be liquidated, viul t1,;., | be seen from the estimates "f the ! of the Treasury, may be ace nq | annual payments even within a |n 1 exceeding thirty years. I hav. ; we shall a 1 this within a . - time ; that, as we have amazed w I by the sujipression of a civi! war w : was thought to be beyond lie : ' any government, so we shall < yial . - | the superiority of our instituii, ..•> prompt and faithful disehargi i tioual obligations. GREAT BRITAIN AND THE liEl ].r AC. Our domestic contest, now L.qqoh < j left some traces in our relations witi a. , jof the great maritime Power-. Th- i : l cordance of belligerent rights t<. the sr.- ' States was unprecedented, and h is n ' fied by the issue. But in the sysr-: j ty pursued by the powers that in :• tk.t 1 sion. there was a marked differen , TLt ... alsof war for the insurgent States vwr- : j in a great measure, from the workshops : ! 'Britain; and British ships, manu .1 ly k j subjects, and prepared for n - ivii: _• 1 j nients, sailed from th. ports ot Great lr : Ito make war on American com in. r m. i . shelter of a commission from the ii.-u v | These ships, having once eseap. ,1 t ' : ports, ever altcrward entered th.-L in ' | the world, to relit, and so to rem w tL ir . tions. The consequences of this In ' ' most disastrous to the s:,itc> then in i i i creasing their desolation and i...--n ,-yt:. i longation of our civil contest. It L-id. : I the effect, to a grent extent, to drr. '• 1 I flag from the 50.., and to travel.. ■ I shipping aiuf our commerce t t! ' ! whose subjects had created the ne< —it. ! i a change. These events took placi 'll -n i' j called to the administration of i!h _ i The sincere desire for peace by wL . L 1 ted led me to approve tht projvs.i to submit the questions which L . 1 tl. I tweon the countries to arbitration. T. - I tions are of such moment that they J commanded the attention of the great lVu-r- I are so interwoven with the peace and . | every one of them as to have insured . u ... j deci ion. I regret to inform you that a I tuin declined the arbitrament but ; hand, invited us to mutual claim- hi • 1 countries, fr-m which those for t!.- depnai'J I before menfioned should be cxdn ; '■ i osition, in thai very unsatisfactory form, h - i declined. The United States did not present ti ! an impeachment of the good faith ' which w as professing the most in i but as involving questions of publ: | the settlement is essential to the p. and, though pecuniary reparation totMrn, I citizens would Lave followed incidt ntall) u•• I cision against Great Britain. a i>- j was not their primary object. They : a■> j motive, and it was in the interests •' p< j justice to establish important prineipit | national law. The eorrespomb u wi . ■ i before you. The ground on which the I'm' - 1 ter rests his justification is substantially- •' j municipal law of a nation, an tht die,, . pretations of that law, arc the uhasiha ol ! as a neutral : and 1 teel bound to deci ,o • ; ion, before you and before the w aid, th '■ i titication cannot be sustained bef i jof nations. At tae saint time I do not • , any present attempt at redress by . is • tion. I'or'the future, friendship la twet: 1 countries must rest on the basis ifm ,i ; INFLUENCE OF DEMOCRATIt GoM.IINJU'M j From the moment of the estalilishuii r.t • i i free constitution, the civilized world has ! vnlsed by revolutions in the interest of d (1: - ior of monarchy ; but through all those ft u ■ i the United State s have wisely and Is.'Uily , to become propagandists of republic. io-' : : the only government suited to our j we have never sought to impose it on ot:u>> :we have consistently followed the advi e.t )• ! isi.TON, to recommend it oidy by th rii i ervation and prudent use of the "hies , ali the intervening period tin policy i 1 ■ j l'ow ers and of the United ttat- - , is, .-u f been Twiee'.ii d ■ I , " of some parts of Ame rica, m the it'teris! arehv, have prevailed ; twice n.y pri • ' -- hael occasion to announce the vn a - of tlu liu respect to such mtcrten uce. On Is th. the remonstranee of the United Suite-, w.; ! y.- eti, from a deep conviction, on the pan e* J I>ean Governments, that the system ol '• terence and mutual abstinence' from prop was the true rule for the two hemisphere-- - v those times we have advanced in wea.tli aU'l i or ; but we retain the same purp, - t• ■ lV nations of Europe to choose their ow. 'y-j --and form their own systems of govern! • 1 consistent moderation may justly deiuaud responding moderation. We should regard ■■ • great calamity to ourselves, to th. cause • ■ > government, and to the peace of the any Europi-an Power challenge the Aua-i: '• pie, Its it WeJe, to the dtft lice ol i jo against foreign interference. We cauuet and are unwilling to consider what pp might present themselves, what might offer to protect ourselves a-, un-t imleal to our form of government, th' ; States desire to act in the future as In y acted heretofore ; they uevi r will b, do that course tint bv the aggression e.i I Powers ; and we rely on the wisdom an lj ii_ ' those Powers to respect the system ot :i - ' ferenei which hits so long been sanction . and which, by its good results, h is nppi to vOth continents. FRANCE. The correspondence between the ' *