Daily evening bulletin., December 07, 1869, Image 3

1131
THE PRESIDENT'S MESSAGE.
To the henate and 'Howe of Representatives:
• In coming be -you .f or . the first time. as
Chief Magistrate. 'of tbdf • great nation; it is
'with gratitude to the Giver of all good for the
:anally. benefits_ we -enjoy. We are blesied
with_ peace at home, and we are without en s
tangling . alliances abroad to:forbode trouble;
With a territory unsurpassed •in fer
tility, of an area equal to the
abundant support of five hundred millions ot
people, - : and abounding in every, variety ot
Wend Mineral id quantatysulli dent to supply
• 'the world for generatiens;with abundant crops;
'Atha variety of climate adapted to the produe
ton of eVery species of earths riches,and suited
to the habits, tastes and requirements of every
liVing thing; with a population of 40,000;000
of free people; all apeaking one language; with
tunlities for every mortal to acquire an edit-
cation; with institutions closing to . none the
avenues of fame or any blessing of fortune that
maybe coveted; with freedom of the pulpit,
'the press and the school; with a revenue flowing
into the national treasury beyond the require
ments of the government, happily, harmony
is rapidly being restored within our own bon:
ders. .. Manufactures hitherto unknown in our
country are'springing up in all sections, pro
ducing a degree of national independence'.
unequaled by .. that of any other
power. Thtkselde.ssings, and countless others,
• are entrusted to your`care and mine for safe
keeping for the brief period of our tenure of
office. In a short time we must each of us re
.turn to the ranks of the people, who, have con
ferred upon us our honors, - and account to
them for our stewardship. I earnestly de
sire that neither you nor I may be
condemned by a free and enlightened!
constituency, nor by our own consciences.
Emerging from a rebellion of gigantic magni
tude, aided as it was by the sympathies and as
sistance of nations with which we were at
peace, eleven States of the Union were four
years ago left without a legal StateGove rumens
A national debt had been contracted. Ameri
can commerce was almost driven from the
seas; the industry of one-half of the country
had been taken from the control of the capi
talist and placed, where all labor right
fully belongs, in do keeping of the laborer.,
. The work of restoring, State govern
ments loyal to the Union, of protecting
and fostering free labor and providing
means for paying the interest' on the public
debt has received ample attention from Con
, gress. Although your efforts have not met
with the success in all particulars that might
have been desired, yet, on the whole, they
have been more satisfactory than could have
been reasonably anticipated.
Seven States , which passed ordinances of
secession have been fully restored to their
places in the Union. The eighth (Georgia)
held an election, at which she ratified her con
stitution, Republican in • form, elected a Gov
ernor, members of Congress a State Legis
lature . and all other' 'offices required.
The Governor was duly' installed, and the
Legislature met and performed all the acts re
quired of theta by the reconstruction acts of
Congress. Subsequently, however, in, viola
tion of the constitution they had just ratified,
as since decided by the Supreme.. Court: of the
State, they unseated. - the colored members of
the Legislature, and admitted to seats some
members who are disqualified by the third
clause of the • Fourteenth Amendment to the
Constitution, one article of-which they them
selves had contributed to ratify. Under these
circumstances, I would submit to you wheth
er it would not be wise, without delay, to en
act alaw authorising the Governor of Georgia
to 'convene the members originally elected to
the Legislature, requiring each member to
take the oath prescribed by the reconstruction
acts, and none to be admitted who are ineli
gible under the the third clause of the Four
teenth Amendment.
The freedmen, under the protection which
they have received, are making rapid progress
in learning, and no complaints are heard of
lack of industry on their part when they re
ceive fair remuneration for their labor.
The means provided for paying the interest
of the' public debt, with all other
expenses of the Government: are more
than ample. The loss of our commerce
is, the only result of the late rebellion which
has not received sufficient attention from you.
To this subject I call your earnest attention.
I will not now suggest plans by which this ob
ject may be effected, but will, if necessary,
make,-• it the subject of a special
message during the session of Congress.
At the March term Congress by a
joint resolution authorized the Execu
tive to order elections in the States of Vir
ginia, Mississippi and . Texas, to submit to
them the Constitutions which each had previ
onSly in conventions formed, and submit the
Constitutions either entire or . in separate
parts, to be voted upon at
the • discretion of the Executive.
Under 'this authority electiOns were called.
• In Virginia the election, took place on the oth
of July, 1869. The Governor and Lieutenant-
Governor elected have been installed. The
Legislature met and (lid all required by this
resolution, and by all the reconstruction acts
of Congress, and abstained from all doubtful
authority. I recommend that her Senators
and Representatives, and the State, be fully
restored to her place in the family of States.
Elections were called in Mississippi and
I.eXas, to commence on the 30th of _Novem
ber, l8;9, and to last for two days in Missis
sippi and four days in Texas: The elections,
have taken place; hut the result is not known.
It is to be hoped that the acts of the legisla
tures of these States, when they meet, will'
be such as to receive your • approval
and thus close the work of reconstruction.
Among tin: evils growing out of the rebellion,
.and not yet referred to, is that of an irredeem
able currency. • It is an evil which I hope will
receive your most earnest attention. It is a
duty, and one of the highest duties et Govern
ment, to secure to the :citiZeriS a
medium of exchange of fixed and
unvarying value. This implies
a return to a specieibasis;and no substitute for
it can be devised. It should be commenced
now, and reached at the earliest practicable
Moment consistent with a fair regard to the
interests of the debtor class. Immediate re- -
gumption. if practicable, would " not be de
. It would zcoMper the - debtor class
toliay, beyond their contracts the premium
on gold at the date of purchase, and
'would to bring bankruptcy and ruinto thous
ands. Fluctuation, however; in the proper
value of the measure of all values, gold, is
detrimental to the interests of trade. It mikes
the man of business an involuntary gambler;
for in all Sales, where future payment is to be
made, both parties speculate as to, what will
be the value of the currency to be paid and ;
received. I earnestly, recommend to you
then such legislatiorras will insure a gradual
return to specie payments and put an imme
diate stop to fluctuations in the value of cur
rency. The methods to secure the former of
these results are as numerous as are the
speculators on political economy. I
see but one way, and that is .
to authorize the treasury to redeem its own
paper at a fixedprice whenever presented,
and to withhold from circulation all currency
so redeemed until sold again for gold. The
vast resources. of the nation, both developed
and undeveloped, ought to make our
credit the best on earth. "\Yith a less
burden of taxation than the citizen has en
dured for six years past, the
entire public debt could be paid in ten years.
But it is not desirable; that the people should
be forced to pay it in that time, Year by year
the ability to pay increases in a rapid rate. But
the burden of interest ought to be reduced as
rapidly as can be done without the violation
of contra*. The ; public debt is represented
in great part by bonds having
,from five to
twenty and from ten to forty years . to run,
bearing interest at the rate of li per cent. and
live per cent respectively. His optional with
the government to pay these bonds at any
period after the expiration of the least time
mentioned unon their thee. The time has
already expired when a great part of them
may be taken up, and is rapidly approaching
wheii all may be. It is believed that all
which are now duo may be replaced by
bonds bearing a rate of interest not exceeding
four and one-half per cent., and as rapidly as
the remainder become due 'that they may be
replaced in the, same 'way. To accomplish
this it may be necessary to authorize the in
'terest to be paid at either of three or four of
the money centres 'of Europe, or by any
Assistant-Treasurer of the United States,at the
stiption of the holders of the bonds. I suggest
this subject for the consideration of Congress;
also, simultaneously with this, the propriety
of redeeming our currency,as before suggested ;
at its market Yalue,at thelime law goes into et
fect,iticreasiag the. rate at which currency will
be bought and Sold from day to day, or week
SO week, at the same rate of interest as the
Government pays upon its bonds.
THE DAILY EVENING BULLETIN-PHILADELPHIA, TUESDAY; DECEMBER 7,1869.--TRIPLE:SHEET.
The subject of thostariffand internal taxation
willnecessarily receive.' yoor attention;,,• i The
revenues attic Country are r rettfer than the
-reqttirements, Mid may wi safety be - re
duced ; but as the funding ofthErdebtln,a,fctur
er a four and a half per cent. loan 'would re;
duce the anntial current expenso largelk,tbusi
after funding, justifying agreafer
taxation, this may be reduced safely .front
sixty, to eighty millions per annum at once,and
may be stiU father, reduced , from
year to year as the resources 'of- thq
,country -are• developed. , The report of the
Secretary of the Treasury shows the receintzt
of the Government for the fiscal year eliding
June 30,-1869, to be $370,943,747, . and the
expenditures, including interest, bounties,
&c., to be $321,490,597. The estimated
for the ensuing. year are more favorable t 4
the government, and will, no doubt, show a,
much larser , decrease of the public debt. The
receipts in the Treasury beyond expenditures,
have exceeded the amount necessary, to,place'
to the credit of the Sinhing Fund, as pro;
vided by law. To lack up the surplus in the:
Treasury and withheld it from
circulation would lead to such
a contraction of the • currency
as to cripple trade and seriously affect the
prosperity of the country.. Under these sir=
cumstances the Secretary of the Treasury andi
myself heartily concurred in the' proprieti
of using all the surplus currency in the,
Treasury in the purchase of government bonds,,
thus reducing the interest bearing indebtedness'
of the country, and of submitting to Congress
question questio of the disposition to be made of
the bonds so purchaseff : The bonds now held
by the Treasury amount to about $75,000,000,
Includin those belonging to the Sinking
Fund. (recommend that the whole be placed ,
to the credit of the Sinking Fund. Your at
tention is respectfully invited to the recom
mendations of the Secretary of the Treasury
for the creation of the office of Com
missioner of Customs Revenue, for
the increase of salary to certain classes of
officials and the substitution of increased na
tional bank circulation to replace the outstand
ing three per cent. certificates and most es
pecially to his recommendation for the repeal
of laws allowing shares of lines, penalties,
forfeitures, &c., to officers of the Government
and to informers.
The office of Commissioner of Internal
Revenue is one of the most arduous and re
sponsible under the Government, . It falls but
little, if any, short of a Cabinet position in its
importance and responsibilities. I would ask
for it, therefore, such legislation as in your
judgment will place the office upon
a footing of dignity commensurate
with . its importance and with
the character and qualifications of the. class of
•men required to fill it properly.,
As the United States is the freest of all na
floes, so, too, its people sympathize with all
peoples struggling for liberty and self-govern
ment. But while so sympathizing, it'is due to
our honor that we should abstain from en
forcing • our views • upon unwilling
nations, and • from taking an in
terested part, without invitation, in the
quarrels between different nations or between
governments and their subjects. Our course
should always be in conformity with strict
justice and law, international and local. Such
has been the policy of the administration in
dealing with' these questions. For more than
a year a valuable province of Spain, And a
near neighbor of ours, in whom all our people
cannot but feel a deep interest, has been strug
gling for independence and freedom. The
people and government of the United States
entertain the same warm feelingB and
sympathies for the people of Cuba in their
pending struggle • that. • they manifested
throughout the previous struggles between
Spain and her former colonies,in behalf of the
latter; but the contest has never"assumed a
condition - which amounts to a war. in the
sense of' international law, or - Which' would
show the existence of a de facto political
organization of theinsurgents sufficient
to justify a recognition of belligerency.
The principle is maintained, however, that
this nation is its own judge when to accent the
rights of belligerency, either to a people strug
gling to free themselves from a government
they believe to be. oppressive,. or to inde
endent nations at war with each other... The
nited States have no disposition to interfere
with the existing relations of Spain to. her
colonial possessions on this continent. They be
li eve that in due time Spain anti the Enropean
powers will find their interest in terminating
these relations and establishing their present
dependencies as independent powers, mem 7
bers of the family of nations. These depen
dencies are no longer regarded as subject to
transfer from one European.power to another.
When the present relation of the colonies
ceases, they are to become independent new
ers, exercising the right of choice and orself
control in the determination of their future
condipon and relations With other Powers.
The I; rated States, in order to put a stop to
bloodshed in Cuba and in the interest of a
neighboring 'people, proposed their good
offices to bring the-existing contest to a termi•
nation. The offer not being nceepted by Spain
on a basis which we believed could be received
by Cuba was withdrawn. It is hoped that the
good offices. of the United titates, may
yet prove advantagebus for the settlement of
. .
this unhappy strife. Meanwhile, illegal ex
peditions against Cuba have been broken up.
It has been the endeavOr of the Administra
tion to execute the neutrality laws in good
faith, no matter hOw unpleasant the task,
'made so by the sutferingif we 'have endured
from lack of like good faith towards us by
other nations. On the 26th of March last the
V. S. schooner Lizzie Major was, arrested on
the high seas bya Spanish frigate and two pas-.
sengers taken from it and carried as prisoners
to Cuba. Representations of these facts were
made to the Spanish Government as soon as
official inforination of them reached Wash
ington. The two passengers were set at
liberty, and the Spanish Government assured
the United States that the captain of the fri
igate in Making the capture had acted without
aw ; that he bad been reprimanded for the
irregularity of his comluct, and that the Span
ish authorities in Cuba would not sanction
•any act that could violate the rights or treat
with diSrespeet the sovereignty of this nation.
• The question of the seizure of the brir , .Mary
LoWell at one of the Bahama Islands . 'by the
Spanish authorities is now the subject of corre
spondence between this government and those
of Spain and Great Britain. The Captain-
General of Cuba, abont May last, issued a
proclamation authorizing search to be made
of vessels on the high seas. Immediate re
monstrance was made against this, whereupon
the Captain General issued .a new proclama
tion limiting the right of search to vessels of
the tjnited States, so far a.s authorized under
the treaty of 1795 This proclamation, how
ever, was immediately withdrawn, ;I have
always felt ,tinit .the-most intimate relations
should be cultivated between the Republic of
the United States and all indepen
dent nations on this continent. It
May be well worth considering
whether new treaties between the United
States and them may not be profitably en
tered into to secure more intimate relations,
friendly, commercial or otherwise. The sub
ject, of an inter-oceanic canal, to connect
the Atlantic and Pacific Oceans through
the Isthmus of Darien, is one in
which commerce is greatly interested.
Instructions have been given to our Minister
to the Republic of the United States of Col
ombia to endeavor to obtain authority for a
survey by this Government in order to deter
mine the practicability of such an undertak
ing. and a tinnier. for the right of way to
build, by private enterprise, stich
work, if the survey proves it
.to be practicable. In order to comply with
the agreement of the United States as to a
mixed conunission at Lima for the adjust
ment of claims, it became necessary to send
a Commissioner and Secretary to Linia in Au
gust last. No appropriation having . been
made by Congress for this purpose, - it is now
asked that one be made.covering the past and
future expenses of the commission.
The good ofiices of the,United States to bring
about apeace between. Spain and: the 'South
American republics,witk which she is at war,
having been accepted by Spain, Peru and
Chili,a congress has been invited to be held in
Washington during the present winter. A
grant has been given to Europeans of
an exclusive right of . transit over
the territory of Nicaragua, to which
Costa Rica has given its assent,
NORA', it; is alleged, conflicts with - the vested ' .
rights of citizens of the United States. The
Department' . 01- State has now this subject
under consideration. The Minister of Peru
having made representations that there - was a
state of war between Peru and Spain and that
Spain was constructing in and near New York
thirty gunboats which might be used by
Spain in .Such a way as to relieve
the naval force in Cuba, and also to . , operate
against Peru; orders were given "toprevent
, • ..
their.departure. No further steps having been,
i'ta,ke4
. ip',l',t,ltelqr.otireanig.ative!. of - the :'..Pe
'yjtviiik:-.qolt.eit*eiat' to I•prevent the ' •:•det.,
pi:attire - ,of 'these - vessels, and I not feel- -
jing autlioriked• to 1 cletain• did property :of , a
hatter with which We:Were at peace on a inert)
Executive,. Order, , the matter' has been re-:
ferred','.4;O
~. the Courts to' decide. The:
CondUct Of "- , the war .• ' between - the
allies and the Beptiblic of ra,ray has made
the - inter:COO:me withlbaCcohn ' se difficult'
T
"that it has been deemed rul - Vittszh et° withdraw'
our representative. from !her.. ',Towards the
close Of the hist•AdmirdstratlO, a convention
.was signed at Dondon-lor :".the; Settlement of
all outstanding ' claims. ", between ; Great.
Bntain and the • United "States, 'which
failed to receive the advicennll4o;loent-of the;•
Senate Id its ratification. s The time and' the
circumstancea' attending ”the - liegritiations of
that treaty were unfavorable to- its acceptance ,
by the people of the United States, and its pro
visions were - Wholly inadeqtatte for the settle-'
went, of the grave wrens that had been sus
tained by this Government; as wellas by its
- citizens. - The injuries resulting, to the "United
Sfittes by reason of the course adopted by Great
Britain during ourlate civil war ; in the in
creased rates of insurance, in the diminution
of exports andimports,jand other obstructions
to domestic industry and production; in its
effect ' upon the foreign 'commerce of the
country; in the decrease and transferto Great
Britain of our commercial marine; in the
.prolongation' of the war, and,
in the • increased cost, both in
treasure and in lives of its suppression, could
not be adjusted and satisfied as ordinary coin
. menial claims. which .continually I rise be
tween commercial nations ; and yet, e con
-1 vention treated these simply as such . o dinary
t
claims, from which they differ more 'w ely in
the gravity of their character than in the'infig
nit ude of their amount. Great even as is that
difference, not a word was found in the treaty,
and not an inference could be drawn from it,to
remove the sense of the unfriendliness of the
course of Great Britain in our struggle for
existence which had so deeply and univer
sally impressed itself upon the people of this
country. Believing that a convention thus
misconceived in its scope and inadequate in
its provisions would not have produced the
hearty, cordial settlement of pending ques
tions -which alone is consistent with
the relations which I desire to have
established between the, • United
States and Great Britain. I •regarded the
action of the Senate in rejecting the treaty to
have been wisely taken, in the interest of
peace, and as a necessary step in,the direction
of a perfect and cordial friendship between
the two countries.., A sensitive peoplo con
scious of their power,are more at ease under a
great wrong wholly unatoned, than under the
restraint of a settlement which satisfies neither
their ideas of justice nor their grave sense of
the grievance they have sustained. . The re
jection of the treaty was followed by a state of
public feeling .on both - sides which
I thought not favorable to. an imme
(Hate attempt at renewed negotiations.
I accordingly so instructed the
Minister of the United States to. Great Britain,
and found that my views in this regard were
shared by her Majesty's Minister. .11 - hope that
the time maysoon arrive when the two Go.
vernments can approach the:solution of this
momentous question with an appreciation of
what is dne to the rights { dignity and honor of
each, and with the determination not only to
remove the causes of complaint in the past,but
to fay the foundation of a broad principle of
public law .which will prevent future ditlicul
tieS and lend a firm and continued peace and
friendship. This is now the only grave ques
tion which the United States have with any
foreign nation.
The question of renewing a treaty -for, re
ciprocal trade between the United States and
the British provinces on this continent has
not been favorably considered 'by the Admin.
istrat'on. The advantages of such a treaty
would be wholly in favor of the British pro
vinces except possibly a few engaged in the
trade between the two sections. No citizen
of the United States would be benefited by re
ciprocity. Our internal taxation would prove
a protection to the British producer almost
equal to the protection which our manufactu
rers now "receive from the thrift: Some ar
arrangement, however, for the regulation of
commercial intercourse between the United
States and the Dominion of Canada may
be desirable. The commission for ad
justing the claims of the Hudson Bay
and Puget's Sound Agricultural Company
upon the • United States has terminated its
labors. The award of S• 650,000 has been made,
and all the rights and titles of the Company
on the territory of the United • States have
been extinguished. DCeds for the' property
of the Company have been delivered., An ap
propriation
by Congress to meet thiS sum is
asked. . .
The commissioners for :.determining the
Nerthwestern land boundary between the
United States and the British possessions, un
der the treaty of 18AG, have completed- their
labor and the conathiSs.ionlias been dissolVed.
In conforMity with the recommendation of
CongtesS a proposition was early made to the
British Government. to abolish the mixed
courts created under the treaty ofApril 1,)862
fdr the suppression of the slave trade . . The
subject is still under negotiation.
, It having come to my knowledge that .a .
corporate company organized under the
British law ureposed, to land upon the shores
of the United States and to operate, there a
sub-marine cable under a concession from his
Majesty , the Emperor of the French- -
of,an exclusiwe right for twenty years .of
communication between the shores of France
and the United States, with the very objection
able feature of subjecting all _messages con
veYed thereby' to the scrutiny and control of
the French government. I caused the French
and British legations at Washington to be
made acquainted with the probable policy of
Congress on the subject, as foreshadowed
by the bill which passed the Senate
in March last. This drew froth the represen
tatives of the 'Company an agreernent to
Accept as the basis of their operations the pro
visions of that bill, or of such other enactment
on the subject as might be Used during
the approaching session of Congress ;
also, to use their ' influence to
secure from the French Government
modification of their- concession so as to per
mit the landing upon French soil of any cable
belonging to any company incorporated by the
authorities of the United States, or of any
State iu the Union, . and on their part .
not to oppose the establishMent of
any such cable. In consideration of
this agreement, I directed the withdrawal
all opposition by the United States author
ides to the landing of the cable and to. the
working of it, until the meeting of Congress:
I regret to say that there has been no modifi
cation made in the company's concession, ,nor
so far as I can learn have they at
t4 mpted to secure one. Their concession
excludes the capital and the citizens of the
United States from competition upon
the shores of France. I recommend legisla
tion to protect the rights of citizens of the
United States. as well as the dignity and
sovereignty of the nation against such an as
sumption. 1 shall also endeavor to secure by
negotiation an abandonment of the principle
of monopolies in ocean telegraphic cables.
copies of this correspondence are herewith
furnished. The unsettled political condition
of other countries less fortunate than our own,
sometimes induces their citizens to conic to
the United States for the sole purpose of be
coming naturalized. Having secured this,
they return to their native country
and reside, without disclosing their
change of allegiance. They accept
official positions of trust or honor which can
only be held by citizens of their native land.
They journey under passports describing them
as such citizens, and it is only when civil dis
cord, after, perhaps, years of quiet, threatens
their persons or their property, or when their
native State drafts them into its military ser
vice, that the fact of their change of allegiance
is made known.
They reside perinanently away from the
United States,
and they contribute nothing . to
its revenues ; they avoid the duties of its citi
zenship, and they only make themselves
known by a claim of protection. I have
directed. the diplomatic and consular officers
of the United States to scrutinize carefully:all.
such claims of protectio».
The citizen of the. United States, whether
native or adopted, who discharges his ditty to .
his country,is, entitled to its complete protee
thin. While I have a voice in the direction of
affairs, I shall not consent to imperil this
sacred right by conferring .it upon
• fictitious or fraudulent : claimants. Glu
the accession .of the present Administration it
was fOund that the Minister for North Ger
many made propositionS for : the negotiation of
a Convention for the prtitecition of emigrant
passengers, to which no response had - been
t Wr
given, iDA concluded that to be effectual
all the maritime owes'p engage in ttui,
trade -loin in , s sag% a measure. , la-;
Vitatiozis have been extended to the Cabinets
of. London, Paris, Florence, Berlin, Brussels.
'rho }Lague, ali
Copetigen end Stockholai to
' empower their RePreeetitati'vee at
Washington simultaneously enter
into negotiations, and to conclude." with'
the United States cenientiorts identical in
foim, making uniform regulations 'fie to the
construction of the parts of vessels to be de
voted to the use of emigrant passengers, as;to ,
tthe of food, as to the medidal
treatment of the' sick, and as ID the
rules to be observed' dnting 'the."voyage,
in order to secure Ventilation,' to promote
health,topreveht intrusion, and to protect the
families, and Providing for the establisbMent
of tribmials in the 'several countries for seii
lotcing such'' regulations by
. process, And your attention is, re
spectfully' to the law
regulating the tariff 6nßussian hemp, and to
the question whether to fix the charges on
Russian hemp higher than they are fixediipon
manilla is not a violation of our treaty with
Russia , placing her products upon the
same footing- with those of the most favOred
nations.
Onrinanufactures are increasing with - Won
derful rapidity under the encouragement
which they now receive. With the improveLo
went in machinery already effected and still
increasing, causing' rna.chinery to take the
place of skilled labor to a large extent, our
imports of many articles must fall off largely
within alvery few years.
,
Fortunately, manufactures are not confined
to a few localities as formerly, and it is to be
hoped will become more and more diffused,
malting the interest in them equal in all sec
tions. They give employment and support to
hundreds of thousands of people at home, and
retain ,with us the means which otherwise
would be shipped abroad.
The extension of railroads in Europe and
the East is bringing into competition with our
agricultural products like products of other
countries. Self-interest, if not self-preserva
tion, therefore, dictates caution against dis
turbing any industrial interest of the country.
It teaches us also the necessity of looking to
other Markets for the sale of our surplus.
Our neighbors south of us, and China and
Japan, should receive . our special attention.
..It will be the'endeavor of the Administration
to cultivate such relations with all these na
tions as to entitle us to their confidence
and make it their interest as :well as ours to
establish better commercial relations.
Through the agency of a more enlightened
policy than that heretofore pursued towards.
China, largely due to the sagacity and efforts
Of one of our own distinguished citizens, the
world is about to commence Jargcly increased
relations with that populous and
hitherto exclusive nation. As the
United States have been the initiators in this
new policy, so ' they should be the
most . earnest in showing their good
faith in making it a success. In this
connection, I advise such legislation as
will • forever preclude the enslavement
of the Chinese upon our soil under the name
of Coolies, and also prevent American yes
-Bds from engaging in the transportation of
Cooliesto any country tolerating the system.
I also recommend that the mission to China
be raised to one of the first class.
On my assuming the responsible duties of
Chief MagiStrate of the United States, it was
with the conviction that thrtle things were
essential - to its peace, perpetuity and fullest
developments. First among these 'iv strict
integrity in fulfilling- all our. obligations.
Second; to secure protection •to the
person and property of the citizen of
the - United States in- each and every
portion of our common country,whereter he
may choose to move,without reference to ori
ginal nationality, religion, color or polities,
demanding of him only obedience to the laws
and proper respect for the rights of others.
Third—Union of- all the States with equal
rights, indestructible by any constitutional
means. •
To secure the first of these, Congress has
taken two essential steps—first, in declaring
by jointresolution that the public debt should
be paid, principal and interest, in coin; and
second, by providing the means for paying.
Providing the means, however, could not se
cure the object desired without a proper ad
miniStration of the laws for the , collect
tion of the revenues and an economical
disbursement of them. To this subject the
Administration has most earnestly addressed
itself with results, I hope, satisfactory to the
country. There has been no hesitation in
changing officials in order to secure efficient
execution of • ,the laws '• sometimestoo,
too, where in: a mere party view un
deserved political results were likely
to follow; , nor any hesitation in
sustaining efficient officials .. against
remonstrances wholly political. It may. be
well to mention, here the embarrassments
possible to arise front leaving on the .statute
books the so-called tenure of office 'acts, and
to earnestly recommend their total repeal. It
could not have been the intention of the
framers of the constitution, when providing
that appointments made by the President
should receive the consent of the^ Sonata,
that the latter should:have the power to retain
in office persons, placed there by Federal ati
pointment, against the will of 'the President.
The law is 'inconsistent with ar faithful and
efficient administratiOn of the govertithent.
What faith can . the Executive put in ME (jabs
forced upon him, and those, tooi whom he
- has suspended for *reasons? - flow will such
officials . he .likely to serve Andminis
tration which they know does not trust
them. For the second requisite to our growth
and prosperity, time and a firm hut humane
administration of existing laws, amended
from time to time as they may. prove ineffec-,
live or prove harsh and unnecessary are, pro
bably all that are required. The . third
cannot he' 'attained by special legislation
but must be regarded as fixed by the Consti-
Auden itself; and gradually acquiesced in by
force of public opinion.
From the foundation of the government to
the present time, the management of, the
original inhabitants of , this con- .
tineut, the Indians hasbeen a sub
ject of embarrassment and expense, and has
been' attended . with continuous robberies,
murders and wars. From my own experience
upon the frontiers in Indian countries, I do
not hold legislation or the conduct of
the whites who come most in- contact with
the Indian blameless for these hostilities..
The past, however, cannot be Undone, and
the question must be met as .we now fitnd It.
I have . attempted a new policy towards
these wards 'of the nation (they cannot be re
garded in any other light than wards), with
fair 'results, so far as tried, and which I hope
will be attended ultimately with great success.
The Society of Friends is well known as hav
ing succeeded in :living in peace
with the ' Indians in the early
settlement of Pennsylvania, while their
white neighbors of other sects in other sec
tions were constantly embroiled. They were
also known for their opposition to all strife,
violence and war, and are generally noted for
their strict integrity and fair dealings. These
considerations induced me to give the manage
ment of a few reservations of Indians to them,
and to throw the burden of the selection of
agents upon the Society itself. The result has
proven most satisfactory.
It will he found more fully set forth in the
report of the Commissioner of Indian Affairs
For Superintendent and. Indian Agents not
in the reservations, officers of the army were
selected. The reasons fbr this are numerous :
Where Indian agents are sent, there or near
' there, troops must be sent Asp. The agent and
the commander of the troops are independent
of ' each , ' other, and. are subject
to I orders from different depart
ments of flied overnment. The army officer
h o lds a positionfor life; the Agent, at the
will of the President. The for Mer Is personally
interested in living in harmony with the In
dian, and in establishing a permanent peace
to the mill that some portion of his.life may be
spent within the limits of civiliZed society ;
the latter has no such vitSonal interest.
Another reason is an economic one, and .
still another. .the hold'which the, government
has upon a, life-officer to secure a faithful dis
charge of his duties lit carrying out a given.
policy.. The building of railroads, and the ac
cess thereby given to all the. agricultaral mid
mineral regions'' of the :country 'is rapidly
bringing civilized,. Settleinents into contact
with all the tripes of Indians. No matter what
ought to be the relatimiS bet Ween such'' settle
ments linii! , t lie;:aborigines .the fact is ,that
.'they do not harmonize' well, and one 'or
the o tbo :1348 to give way . in 'the mat
/ sYritein:Winiffi looks, to the t3xtbietion of a
race is tooorrible fora nation to adopt with
out entailin upon itself ' the Wrath of all
it
Christendot , and engendering in the citizen a
disregardfor human life and the rights of
others dangerous, to society. I see no substitate
for such a,,pyo9ra c...xcept In placing. all the
Urnlianti on , Ulge;lielservatiorts as rapidly as
can be done,andgiving them absolute protec
tion there, As soon as they are fitted for it,
they should be indticed to. take their, lands in
~severalty emit° ,set up tenitorialgovernment,
for their own protection. Por full details 9n
this subject, I call attention to the reports of
tlin Secretary of the Interior and: the
Commissioner of Indian Affairs
'"The "report of the Seeretary of War
shows the expenditures• of the War De;
artment ter the year ending the 30th of June,
NO, to • be;5 80 , 644 ,0 0 , of, which V 23 , 882 ,810
was dist:tinged in the payment of debts con
tracted titiring the ,war, and
,is not chargeable
to °Went nanny expenses. Ills 'estimate of
$34,031,031 for the expenses of the army for
the next
l iseal year ' ls as low as it is 'believed
can be relied on.,
The estimates of bureau officers have, been
carefully scrutinized and reduced ,wherever
hes been, practicable.' It, however, the
condition of the country, should be swat, by
the beginning of the next fiscal Year, as to
adMit of a greater concentration of troops, the
appropriation. asked for'will not be expended.
The appropriations estimated for river and
harbor improvernentSand for fortifications are
submitted separately. Whatever amount
' Congress may deem proper to approptiate for
these purposes will be expended. The recom
mendathin of the General of the Army that
appropriations .be made for the forts
at Boston, Portland, New York, Phila
delphia, New Orleans and San Francisco,
if for no others, is concurred in. I also ask
your special attention to the recommendation
of the General commanding the military divi
sion of the Pacific, for the sale of the seal
islands of St. George and St. Paul, Alaska
Territory, and suggest that it either be com
plied with, or that legislation be had for the
protection of the Seal fisheries, from which a
revenue should be derived.
The report 'of the Secretary of War con
tains a synopsis of the reports of the heads of
bureaux, of the commanders of military divi
sions. and of the districts of Virginia, Mis
sissippi and Texas. and the report of the Gen
eral of the Army in full. The recommenda
tions therein contained haVe been well con
sidered, and are submitted for your
action. I, however, call special at
tention to the recommendation of
the Chief of Ordnance, for the sales of
arsenals and lands no lOnger of ust to the Go
vernment; also, to the recommendation of the
Secretary:of War that the act of March 3d,
1869, prohibiting promotions and appeint
merits on the staff corps of the army, be re
pealed. The extent'Of country to be garri
soned . and the number of military posts
to be occupied _ is the same with a
minced army as with a large one and a large
number pistol,' offilxrs rortiirevi is more dejlendent
upon the latter than the Artner condition.
The report Of the See'y. of the Navy accom.
partying this shows the condition of the Navy
when this administration came into office and
- the chapgcs made since.
Streneolls efforts have been made to place as
many vessels in commission, Or render them
fit for service, if required, as possible, and to
substitute the sail for steam whilst cruising,
thus materially reducing the expenses of the
navy and adding greatly to its efficiency.
Looking to our future, I recommend a libe-'
nil, though not extravagant policy, towards
4his branch of the public service.
The report of the Postmaster-General furn
ishes a clear and , comprehensive exhibit of the
operations of the postal service and of the
financial condition of the Post-Office 'Depart
ment. The ordinary pastal revenues for the
year ending the 30th. of June, 1869,
amounted to , 518.344.510, and the
expenditures to $23,698,131, showing
an excess of expenditures over receipts,
55,3453,620. The excess of expenditures over
receipts for the previous year amounted to
50,431,99'2. The increase of revenues for 1809
Over those of 1868 was 52,051,9()9, and the in
crease of expenditures was 5967.538. The in
creased revenue in 180.) exceeded the
increased revenue in 1868 by 59 . 30,336, and
the increased expenditures in 1869 . were
$2,527,570 less than the increased expenditures
in 1868, showing, by comparison, this gratify
ing feature, of improvement, that while the
increase of expenditures over the increase of
receipts in 1808, was $2,4:0,535, the increase of
receipts over the increase of expeuditurcs iu
1869 were slo4,:rii.
The method by which PosTage should be paid
upon public, matter is set 'fort h fully in the re
port of the Postmaster-General.
Your attention is respectfully called to the
recommendations made by the Postmaster
General for authority to change the rule of corn
pensation to the main trunkrailroad lines for
services in carrying the mails, for having post
route maps executed, for reorganizing the effi
ciency of the special agency service, for the
'increase of - the mail : service on the
Pacific, and for establishing mail ser
vice under the flag of the Vniou
on the Atlantic. And most especially do
1 call your attention to his recommendation
for the total abolition of the 'franking privi
lege. This is an abuse from which no one re,
coves a commensurate advantage. it reduces
the receipts for postal service from
twenty-live to thirty per cent. imd,lareely
increases the service to he performed.
The report of the Secretary of the Interior
shows that the quantity of public Ends dis
posed of during the year ending 30tah of June,
18611, was 7.(416,152acre5, exceeding that of the
preceding year by 1,010,409 acres. Of this
amount 2,809,544 acres were sold for cash, and
2,737-65 acres entered under the homestead
law.
The remainder was granted to aid in the
construction of works of internal improve
ment, apportioned to the States as swamp
lands,and located with warrants and scrip.
The cash receipts from. all ' sources were
$4,472,886, exceeding . those of the preceding
year $2,840;140.
During the last fiscal year 23,190 names were
Ideil to the pension rolls, and 4,870 dropped
therefrom, leaving at its close 107,903. The
amount .paid ~ t o pensioners, including the
compensation of disbursing 0 agents,
was $8,422,884 au increase. of
$4,411f302 on that of theprevious year. The
munificence of Congress has been conspicu
ously manifested in its legislation for the
soldiers and sailors who • suffered in the
recent struggle to maintain that
nuity of government which makes
us one people. The additions to the pension
rolls of each successive year since , the conclu
sion of hestilities result in a great degree from
the repeated. Amendments of the act of the
14th of,July, 1862 '
which extended its provi
sions to cases not falling within its original
scope.
The large outlay which is thus occasioned is
further increased by. the more liberal allow
ance bestowed since that date upon those
who, in the of duty, were wholly or per
nently disabled. Public opinion has
given an emphatic sanction to these
measures of Congress, and it will be
conceded that no part of our public burden is
more cheerfully borne than-that which is im
posed by this branch of the service. It neces
sitates further, next fiscal year, in ad
dition to the amount justly chargeable to
the naval pension fund, an appropriation of
thirty millions dollars.
During the year ending the 30th of Sept.,lBo9,
the Patent office issued 13,762 patents, and
its receipts were $680,389-4eing $213,926 more
than the expenditures.
I would respectfully call your attention to.
the recommendation of the Secretary of the
Interior, for uniting the duties of supervis
ing the education of freedmen with - the
other duties devolving upon the Com
missioner of Education, 'lf it is the
desire of Congress- to make the census
which must be taken during the year 1870
more complete and perfect than heretofore, I
would suggest early action upon any lan that
may be agreed upon. As Congress
at the last session appointed a , com
mittee , to . take into consideration
such measures as might be deemed
: proper in
reference to the census;ao to
: report ai plan,
1 desist from saying - more. I recomr
mend to your favorable considera
tion the chums! of . the agricutural
bureau for liberalappropriations.ln a country
HO diversified in climate and soil as mini, and
with a population so largely dependent upon
agriculture; the benefits that can be .con
ferred by properly fostering this • buroati
are invaluable: 1 desire, respectfully, . I to
call - the 'attention of Congress to the
inadequate salaries of a number of the mast.
important :officers of the • geyernment. 'ln
this message I will not enumerate them, but
will specify only theJuStices . of the Supreme
Court •1!To change leas been made in their
salaries forfifteen year's, and within that time
the labors . of , the court have largelyincreased,
and the exp enseSofli ring have at least doubled.'
During the, same time Congress has twice
found it', neCessary to increase largely . the
componsation of • its members, and the! duty
which 4 owes td another, department of the
Govetament deserves, and wili. undoubtedly
receive,itar due consideration. •
There are.xwoly 41tbjecits nfit alluded to in
this mdse e s which might with propriety bo
introdeftd; but I abstain believing
that your patriotism • orid thatemintin.sidio
Will suggg nd est the topics:and the legislation
most coucive to the interests of, the whole
people'. Oulu, part; It promise 'a rigid ad.
lierenee Lb the , ,loWs and their strict enforce
ment. 8. GUANT.
Report of *0.500rpt44,...0f....th0'T0*-
sury,
. •
Trig/minx DEPARTMENT, December 6, 1869.
I have th e honor to submit herewith the annual ,
report Of the doings and etindition of the Treasury
Department. In this report / naturally treat first
of matterspf adminiaVation anti then measures of
public polle3r. The officers in charge of the various
bureaus and divisions of the Treasury Department
have faithfully performed their duties, and I com-
m co rt io d
cos their neural reports to the consideration of
•
The Treasurer of the United Statea has prepared
an elaborate report, setting forth the present con
dition of the Treasury, and furilitthing it resume of
the busineaa of the lreastirer's office from 1861 to
the preterit time. The long and faithful services
of the present Treasurer entitle him, to the grati
tude el the country. The report of the Commis
stoner of Internal Revenue la respectfully com
mended to the attention of Cotigress. Since the
appointment of the present Commissioner the ad
ministration of the office has been constantly im
proving.
The incretuse of receipts for' tho first Live months
of the present 1113Galyoar, In the sum of $14,431,333.06
over the amount collected in the first live female; of
the laid fiscal year, la eattsfactory teatlinony to the
ability and integrity Utile persons employed in that
branch of the public service. The amount paid by
warrants for collecting the revenue from customs
during the fiscal year ending Juno 30, 1868, was
$6,37er 1 86.43, and for the. year ending June 30, 1869,
$0,376,138,13, showing a decrease of 81,001,017.30.
This decrease In the cost of collecting the revenue
lias not been attended by any loss of edlelency in the
service. On the other hand, It 18 believed that the
means for the detection of smuggling aro better
than ever before, and that the t.ustom-house ser
vice is also constantly improving.
nought to be understood that the chief means of
collecting the revenue and entorcing the revenue
must be found in the administration of the
Afpralserre Department. The frauds and tomes
arising from actual smuggling aro unimportant
when compared with the iMatti4 sustained through
incompetent and dishonest examiners, and apprais
ers. Areuming Clint inert may be obtained
fur these important positions at the present sale
rice, it is yet true that an incompetent appraiser or
examiner may daily nubject the government to
loses far exceeding his annual salary. Under ex
isting lawn certain revenue officers and other per
sons appearing as in forme re, are entitled to shares
lu enes, penalties rind forfeitures. During the
lineal year 1868-4.9 the Treasury .Department dis
tributed the sum of ei26,(fr3.61 to such officers and
to informers, in the various cases arising under
the customs revenue lawn, and a large additional
sum was also pal() through the internal revenue of
fice. The reasons on which the laws granting such
allowances are liaised is that officers of the govern
ment are stimulated to greater activity in the dis
covery of frauds and in bringing offienth-rs to punish
ment. There can be no doubt that such is the ef
fect of Use policy, bat the experitmee I have bad in
theTreasurylJe. partment /I fth convinced mu that the
evils attending the system are greater than the ben
fite derived from it.
It has become a practice tor clerks and other per
sons who have held office in the Treasury Depart
ment, to accept employruent at , agents for attorneys
for piirties having chilies against the Department,
and there is reason w ' beliefs that in Soule in
stances the information obtained while in th.)
public service has been media aides" the Claimants.
Without detailing all the objections to this 'practice,
1 respectfully suggest that it law be wised barring
persona from practicing before the . Treasury De
partment as agents or attorneys in behalf of claim's
that were pending when such potions were officers
of the Department.
In March last there were employed in the Treasury
Departreetit t at Washington,2,Bl6 elsricsauessungeril
and laborers, at a monthly cost of 5tt35,921.51. At
present The wholenumber of such employes is 2,441;
and theirmonthly payamounts to"YZ,ll3,2fse.tii,showing
a decrease of expenses at the rats of 55.571,688.i54 per
annum. It was found necessary, however, during
the pet hail mentioned, to increase the force in the
Internal Revenue office and in the office of the First
Comptroller. This increase In the aggregate is at
the rate of 880,440 per annum. i statement
does not relate to the force employed in the bureau
of engraving and printing. to March Last there
were sixty-two special agents in the service of the
department. receiving, in the aggregate, for their
services, the aunt of acrll.lo,per day. Each of these
agents made his reports to the department, and
acted under its direct orders. The number at pre
sent employed is iitty-four, and 'their daily pay
amounts to $36 - SCel The pay of the agents has
been increased generally, in the hope that more
efficient services might be obtained.
Arrangements have been made for the manufae
tureof paper for the currency, and other obliga
tions of the United States, and for the printing of
the same, which Increases the security of the gov
ernment against unlawful issues from thii genuine
plates. Under the eleventh section of an act ap
proved dune 30, 1804, entitled "An act to provide
ways and means for the support of the vvernment
anal for other purposes," a peculiar paper has been
designated us the government paper, and by that
act it Is made a felony for any person to have or re
tain in his possession any similar paper, adapted to
,the making"of any Obligation or security of
the United States, except under the au-.
'Malty, of the Secretary of the Treasury,
or - some other proper officer of the United
States. Arrangements have been mare for the
manufacture of this paper by Messrs. WitCO'C ti Co.,
hear Philadelphia, and the mills owned by them,
which are excinsively. devoted to this purpose. 11aVe3
been placed under the supervision of the officers of
the government, and such precautions have been
taken fur the custody of ponione of the machinery
as to render it improbable that the paper mainnae-
Cured can be obtained by dishonest means. It is re
ceived by an agent of the government stationed at
the mills, and upon the requisittorui of the Depart
ment, it is shipped to this National, Bank Note Com
pany, the American Bank Note Company, or to the
Printing Ilureausittles _Treasury. liepamuent, 14$
the case may require.
Arrangements have also bden made with each of
the two companies mentioned for preparing one
set of plates for every issue of carreucy or other
obligation. The engraving and printing bureau at
'Washington propane a third set. and each Milos
places au imprint upon every obligation of the
government. Notice of the transmission of paper
irom the agent at thismills, and its receipt by each
of the several officers of the deliveries there
from to the sealing bureau in the Treasury Depart
ment, and also of deliveries to the Treasurer of the
United States, is given each day by telegram or by
letter, and ortthe following day the accountants in
the Treasury Department 4 prepare a statement
showing the disposition of 'every sheet of paper
manufactured.
In the month of Noveniber, the paper at the
mill, and in each of the several printing establish
ments was carefully counted, and the result com
pared with the accounts in the Treasury Depart
ment. In.an aggregate of' about 7.000,000 sheets re
ceived by the agent at tho mills, discrepancies were
found to the extent of sixty sheets of fractional cur
rency paper, and for the,inoney,value of which the
companies tieing the work are
, The marine hospital service of the country iS,
upon the Ittolo in an unsatisfactory condition.
Several hospitaislave been erected at points where
at present, they are not needed, while the great
commercial cities of New York, Philadelphia, and
Baltimore, have no hospital accommodations fur
sick and disabled seamen.
The revenue marine system is an important and
expensive branch of the custom revenue service.
There are thirty-six vessels belonging to the depart
ment, of which twelve are sailing vessels and twen
ty-four are steamers. The vessels now in the ser
vice have been purchased and built at various
times, and, as far as I can ascertain,without special
reference to the nature of the duty to be performed,
and certainly without any matured plan.
I shall, therefore, take the opinion of a board of
competent officers upon the following points :
First. The also and character of vessels required
by the nature of the service that they are to per
form.
Secondly. Whether they should be constructed
of iron or wood; Or of u• combination of these
Urfa's.
When the report of the commission shall have
-been received proposals will be Issued for the con
struction of four vessels as authorized.
In addittun to the parent mint at Philadelphia,
six brunch mints have been established at various
times hi different parts of the country—one at San
Francisco, one at Now Orleans, one at Charlotte,.
North Carolina, ono at Dahlonega, Georgia, ono at
Denver, Colorado, and one at Portland, Oregon.
Under an act of Congress, passed July 23, 1800,
preparations:are making for the sale of the vitals at.
Charlotte, North Carolina, and Dahliniega. The
mining and coining of ; the precious metals is new
so large a national interest that it deserves more at
tention than it has hitherto received. At presont.
there is no bureau or oilleer in the Treasury De
partment at Washington, charged specially with the
management of this great ,interest: I, therefore,
recommend that provision be made tbr the appoint
ment of a proper officer to be intrusted With this,
branch of the public business, under , the direction•
of the Secretary of the Treasury.
The coinage of the country is diminished in
amount by the fact that in England and France the ,
mint expenses are much less than with us. it would,.
no 4101,.114, have atendency to prevent the export or
the precious metals in the form of bullion, us , the:
mint charges were to be reduced or altogether abet-
During:the month of December 'the department
will be prepared to submit a report upon the condi
tion of our commercial marine. .. That report will
'show that the•navigation interest of the country has•
not recovered front the losses sustained during the •
war .and also that offielent ule.aisurtis are netwslary
forits restoration.: I cannot omit to call the attoe
tion of Congress to the inadequacy of :the salaries
paid to officers in the Treasury Department who WC
-0.0E6 discretion, and' whoiie °acts bind tbo govern--
ment,iialattect directly its expenditures or revenues. -
Should the recommemiation to repeal tile laws
gent - leg shares of ponalties,. flues and forfeitures,
!o public 'MUM be adeptedi_it,Will be necessary to
i ncrease the 'salaries of Collectors, naval officers
and surveyors at all the principal portsof the coma-
'try., 'The routine buslnesa of the department can
be performed in a satisfactory manner by clerks
receiving the compensation now provided by law,
, but men on whose judgment and discretion the
,government relies for the proper' transaction or the.
• business of the country, and whose labors aro not
limited to• the ordinary hours of duty, should be
. made to feel that they are properly compensated,
There are two changes in the organization of the'
4 . Treasury Departmentwhich I eensfilet important.
The first change to Which I refer is the creation of
a Chief Comptroller of the Treasury, who shall be
' authorized to control the Systenlol,accounting by
the several audit Ore and comptrollers and to whom
all Appeals shall be made upon questionsorlsing in
the accounting officers of ; the•Triimatary.S. Tito Crea
tion of this (ate; Clothed With the nottiers'indi-'
.cated, Will give uniformity to the accounting sys
-tern, and, I trust, will be, in the power of the ofilcer
-appointed to simplify' the , Spites's:. 41tid materially
reduce the expenses of the Department in this par
' Beeler.
The second change townich I call attention is in
m
my opinion even ore inniortent. Atimietiont there
are eight divisions in the" Secretary's office, whose
duties are connected exclusively with the. customs
revenue system. There is no person, except the .
Secretary of the Treasury, who is by law authorized
to pass finally or lik any way authoritatively, upon
4ueAtloris arising hi the administration of the C 1114•
tollin revenue laws. At the present time the reve
nue from custornim le as large as the revenue from
the excise system. ' The number of men employed,
and the field of its operations are nearly as. great.
It is impossible for the Secretary of the Treasury to
give to the various questions that arise in the ad
ministration of the system that attention which is
essential to the service.
duties
.saperietenditig, the collection of.
the (miaow' revenue AM no varied, delicate and int
portant as to justify and require the exclusive at
tention of the most competent person whose ser
vices cattle obtained. The experience of the pres
ent year in the administration of the internal reve
nue system, and the collection of the excise tax,
Justifies the opinion that the establishment of the
office of Commissioner of Customs Revenue, cur
responding in powers and position to that of the
Mike. of Commissioner of internal Revenue, and
the appointment of a competent Commissioner,
would render the execution of the customs revenue
laws much more efficient and harmonious, while
the revenue would probably be increased to the
amount of many millions of dollars annually, nor is
it probable that the expenses would be materially
greater.
including interest earned and not paid; and de
ducting cash on band.the debt of. the: United States
on the first of March last was 2,525,963,260.01 dollars,
and subject to the same conditions, it was. 2,153,-
659,735.2;3 dollars on the first of the preaefit month,
showing a decreate of 71,003,60178 dollars. This
apparent decrease of the public debt Is hems than the
actual decrease. Considerable sums have been paid
on account of war and other old claims :not pre
viously ascertained, and, therefore, not !needed in
any debt statement.
The account of March 1, from the necessity of the
case, included only the Interest accrued and not
then payable, but as a matter of fact there were
outstanding and overdue Interest coupon sand these
several millions have since been mild out of the or
dinary revenue.: Previous to March 1 no interest
account has ever been 'kept with the several loans.
Such theatmures an were found practicable
have Since been taken to e ascertain the exact
condition of these accounts. The bonds issued by
the. United States in aid of railways, amounting to
862,625,320, being in the nature of a loan, aril, not
included in the foregoing statement. During' the
fiscal year ending June 30, 180, there was an ex's
cess of receipts over expenditures, including in
terest on the public debt of $10,453,140.16. Of this
excess $12,992,370.03. as nearly as can now be as
certained, arose previomemly to March 1, and the re
mainder, 5e36,460,719.437hetween that time and the
first day of July. Thum excess was applied from
time to time to the purchase of five-twenty bonds,
and the excess of receipts slime July 1 has been
used in the game manner.. These purchases
amounted in the aggregate on the 30th day of No
vember, to' 975,476.840. A large part of the excess
of receipts was realized in coin. Sales of gold have
been made from time to time, and the proceeds ap
plied to the purchase of bonds.
With the exception of use sales of mederate
amounts Of coin in Chicago, New Orleans, St.
Louis and Baltimore, for the payment of duties, the
sales of gold, and the purchase of bonds have been
made uniformly through the agency of the Assist
-ant Treasurer at New York, and without any ex+
pease to the govennent, except the comparatively
small amount paid for aciverßsiog the proposals.
The average premium on gold nitlV March 1, has
been 3211-10 per cent., and the avFrago premium
paid for bonds has been 16 98-100 per cent. Upon
this basis of the sales of gold and the purchase of
.bonds, the average price paid for bonds in coin has
been 814 55-100 per cent. The act Of February 25,
1862, provided that the coin received for duties upon
imported goods should be annually set
apart as a sinking fund, to the este. ' of
one per centuns of the entire debt os the
Vetted States. -In eonibrmity with tills ieqiilrem:
meet I have purchased honest(' the amount of 1320,s
044,800, arid designated therm'', as belonging to the
sinking fund. These purchases are as substantial a
compliance with the statute from the 4th of March
last. I have not felt myself authorized or required
to make any ptovision for the time that elapsed for
the passage of the act 'and previous to the dune'
mencement of the administration. With the ex
cess of means at my command, I have purchased
bonds in addition to those purchased for the sinking
fund to time amount of $55,432,000. These are held
as a special fund subject to the action of Congress,
and I respeetfUlly recommend that they be
added to the sinking fund, and that any
future purchases that may be made be so
added until the gross amount shall constitute
a fund equal to that which would have been
created If there had been no delay in the execution
of the law. The depreciation of the currency is due
to two canes: first, the excessive issue; and. sec
ondly, to the want of faith In the government, and
the extent of the influence of the first named cause
cannot be ascertained until the second is removed
.substantially. Whenever our credit shall be so
much improved at home and abroad that holders of
our bonds are dls,posed to retain them, even when
the public mind is excited upon .financLal subjects,
we shall be able to judge more accurately the'ex
tent of the over issue of paper money. It is also
true that the quantity of currency necessary for the
transaction of the business of the country cannot
now •be fixed accurately. Since the close of the
war the wants of the States of the Small
have increased, and consequently a large amount of
currency has been withdrawn from other sections
to suppfy the demand there.cretsted. The amount
necessary for the eurposes of the South will steadily
increase for the next two years.' The construction
of the Pacific Railroad is likely to result in the
substitution of paper for coin by the people of the
Pacific co:mt. It is probable that the denistul for
paper for that purpose will not be less than thirty,
millions of dollars. An a consequence. a verybirge
quantity of coin will be withdrawn from circula
tion, arid thus practically the coin will be increased
upon the Atlantic coast, and the paper in eircl/ lation
in the States east of the Rocky Mountains will be
. materially reduced. These changes will tend to di
minish the ditlereine between paper and coin. The
ability of the country to resume specie payments
will not he due to our special legislation upon the
subject, but to the condition of its industries and to
its fluileCial relations to other countries. Thems, of`
course, will be snore or. less dependent upon the
general policy of the government. The war ex
hausted the country of its material wealth, and the
States of the South were literally Impoverished. A
necessary condition Or the resumption of specie
payments was the development of the industries of
the nation both South and North, and the cense
',fluent accumulationjof the movable products of
indtietry to such min extent that our exports of those
products should be equal' substantially to our
imports. So long as it is necessary to pay for mer
elmandize imported by 'the transfer of government
bonds or other evidences of indebtedness to other
countries, so long it will be impracticable to
resume and maintain specie payments. When the
products of industry exported shall be equal, , sub
etantially, to the products of other , countries im
ported, there will be no demand' for specie for
export except what may arise from the. circum
stance 'that. our bonds held abroad are
sent home, sold in our markets and the
proceeds exported in coin. When the credit of
the country shall be fully established in Europe,
A(1 there shall be no doubt either of our ability or
disposition to meet all our obligations, bonds here
tofore and now to's large extent held by merchants
and bankers will he transferred to capitalists ..for
permanent investment.' When this change shall
have taken place the- probability of our securities
being sent home under the influence of political or
financial disturbance in Europe will be very slight,
and when, as a concurring fact, our exports, exclus
.siye of public securities, shall be equal to our im
ports, specie payments may be resumed without
even a temporary embarrassment to the business
of the country.
One ofthe mostefficient means of strengthening.
the country in its financial relations withother
countries is the development of our commercial
marine. The returns show that a very largo amount
of the foreign trade is in English hands. ,
We are not only thus dependent on a rival
country for the performance of the business which
should be in the bends of our own•people s but our
ability to maintain specie payments is materially
diminished: If the :entire foreign trade of the
country, both of exports and Imports, weretarried
on in A'merican ships, the earnings weakd not be
less than seventy five-millions ofdollars a year. :At
present the freights of the ford& trade in Ameri
can ships do not exceed twenty-eight millione,of
. - •
dollars.
Were the trade exaluslyely '
in Anierican hands a
large part of this difference of forty-seven millions
of-dollars wouldhe due to, citizens of the United
States. and payable in other countries. This
.amount would be thus added to our ability to pay
for goods imported from those countries.
While I do not antleipate that it will be necessary
, to delay. resumption Until our proper commercial
position Ii regained, I an satisfied that the develop
ment of the navigation and ship building Interests
will improve the credit and rapidly augment the
Wealth of the country, The suggestionti that I hay
made indicate my opinion that it will not Lowlife to
resume specie payments while so large a part of the
Interest-bearing debt of, the country Is - represented
by Live-twenty: bonds and held by Ifiuropean
chants, bankers and manefeeturers. QuestimiS th,e
have been raised in regard to the nature of the obli.
gation assumed by the governimmt in the issue of
these bonds have undoubtedly deterred many per.
:sons from purchasing them as a perinauot invest-
thent,:iMa'coptieentintly , they 'areAlargelk held: in
this country and Cu Europe for , speaulptiVelitirlasa.
by,perlanni who design to put thermupou, the in
kilt Whetlev'ef' the ishall•Terniett 'a'artffl bleat,
Irideleinnonti)or':
thrtaileeti ) may create a •demandi for Plopey r for..
ether -Purposa. it IS probable that' from 110V.en td
'nine hundred Milliond•of these•bduda:krallew hind
• hi Europe, and to fi• conaiderable extenthy mama;
Who wilt ,dispose of 'them under the indueinees to
which T halal referred. Stich a+ IMMO the - aided 111 '
EA
Europe in 1866, at the opening or the nstrian) And
Prussian war, would 'be likely.to2induceithoretUrit
of a sufficient antouht to-this country, rot' Sale t 6 em
barrage bushiesa; and Incase btrestititetlint to calla
the suspension of banks, It ,fts,:therefOtOt:
judgment, eilantiat that the larger part of thetlve
twenty! bonds be wlthdrawni and" that other bonds'
be sulistitutedin their place, hatred upon ttirrail
conditions which will, win/Eel, no.doubt., 41) One,.
" tbapractiCal question knot Merely the roan:lntl:On
of stpecle payments fis'a measure: by:4B6l4ft is not'
difficult, but the problemis to resume . : under such
circumstances that the position can be maintained
notonly in times of tranquility, bUt''altici in 'periods '
of excitement and peril. • . ,•! • •• '!
• Our (ionise, it aegis to, me, is ' plain. ,Every.
m e asdre of the government bearing win 'the Sub
ject Should tend to appreciate the vitae ofinit paper '
currency.. • it is probable that Some decrecuse. In the
volume of paper will ultimately be necessary,. I
therefore respectfully Suggest that 'the Secretary of '
the Treasury be clothed with authority to reduce
the circulation of United Stateil notes in an amount
not exceeding two millions of &MAW any one
month. Thus will the Conntry be brought, gradu
ally, it may I,e, and lyet without disaster, into a con
dition when the resumption of specie payments will,
be easy,ll not unavoidable. Oath° lat of Decemlier,
1869, the principal of the public debt of the- United
Statts, not deducting bonds .•tirol cash on hand,
a:Mounted t 052,605,286,789.82: .Of this amount the
sum 0f5.316,113,258.50 is represented by United States !
notes not bearing Interest. The larger Liana Ousts I
needed for circulation, but the amount can-be re- I
duced from the ordinar,) revenue of the countryi if
Congress shall consider it expedient to make provi
sion for such reduction. The fractional currency in
circulation was 8.38,885,501.68, and there is no occa
sion for any legislation in reference to this item of
the public debt. There are also outstanding certi
ficates for gold deposited in the Treasury to the
amount of p. 36,862,940. These certlfiriates: are re
deemable on presentation. These three items
amount in the aggregate to 5431,861,763.18, and in
making provision for the public debt they are not
necessary to be considered.
Of the loan of January 1, 1861, the sum of 87,022,-
000 is outstanding, and payable on the first of Janu
ary, 1871. The loan of , 1858, of twenty million dol
lars, is payable in 1873. , The bonds, known as ten
forty bonds, amounting to 6194,567,300, are not pay
able until 1874. The Mx per cent, bonds payable in
1881 amount to $'28'6,667,000, As the bonds known
as eighty-ones and ten-forties, amounting in the ag
gregate to 876,244,900, are not due and cannot no
paid previous to 1874, and 1881, it is unnecessary to
consider them in making provision for a new loan.
The eve-twenty bonds, amounting in the aggregate
to 61,602,671,100 are either due or • will soon become
due; and it is to this Chia of the public debt, and
to.this class alone, that attention should be directed.
Of this amount the sum of 875,411.800 has been
purchased,since March last, and the bonds are now
held by the government. Before any measure for
funding the tive-twenty bonds can be consummated
the government Will be able to purchase at least
seventy-five million dollarti more. There will then
remain on the Ma of July next, about $ 1 ,15 4 Mt06,600
Mlles five-twenty bonds in the hands or the patffic
creditors. Of the entire indebtedness of the United
Staten only the unimportant sum of twenti , seven
million dollars will he due and payable previous to
1874.
Under these circumstances it does not seem to me
to be wise to authorize the funding of the whole
amount of the live-twenty bonds, which, as is now
anticipated. will be outstanding on the Ist of July
next; but that 8250 '
,000,000, at :least. should he suf
fered to remain, either for purchase or redemption
previous to 4874. Should the sum of 8250;060,00e be
left for that purpose, the entire public debt will be
In it mention to be easily redeemed. Between
1874 and 1881 the ten-forty bonds could be paid; and
provision also made for the redemption of the bonds
which will become due in the year 1881. 'Unity be
wise to reduce the proposed loan to $1,000,000,000,
which would then leave for payment previous to
1881 the hum of about' 81,670.000,e90,. or hardly more
than 564,1,Qui,000 a year. Assuming that the pro
posed loan will be. for an »Mount not exceeding
51,200,tic0,00, 1 recommend that it be offered in
three classes or 8400,000,000 each. The first DIMS of
sa4oo,eoo,oeo to be payable in fifteen years and to be
paid in twenty years. The second class Of -.500,-
000,0(41 LO be payable in twenty years and to be paid
in twenty-five years. The third class of a100,000m1)
to be payable in twenty-five years and to be paid in
thirty years. The essential conditions of the new
loan appear to me to be these :
Firiit. That the principal and interest shall be
made payable in coin.
Second. That the bonds known as fire-twenty
bonds shall be received in exchange for did new
bonds.
Third. That the principal be payable in this
country and the interest payable either in the
United States or in Europe, as the subscribers, to,
the loan mac desire. •
Fourth. That the rate of Interest shall not exceed
4% per cent. per annum
'Fifth. That the subscribers in Europe Shall re
ceive their interest at London, P4rls, Berlin, or
Frankfort, as they may elect.
Sixth. That the loans, both principal and in
terest, shall be free from all taxes, deduction, or,
abatements of any sort, unless it shall be thought
wise to subject citizens; of the United States to
such tax upon income from bonds as is im
posed by the laws of the United States
upon incomes derived flora investments
There are two reasons, and each seems to me to
be a controlling reason, why the bonds of the United
States should be exempt from State and local taxes.
If not FO exempt, the amount of the taxes imposed
by the local authorities will be added to the interest
the government will be required to pay, and thus.
the National government will be c ompelled to pro
vide for taxes Imposed by the local authorities.
Secondly—lnasmuch as the ability to borrow may,
under some circumstances, be essential to the pre
servation of the government, the power should not
even in times of peace and prosperity be qualified
by any concession to the States of the right ; to tax
the means by which the National government is
maintained. • The right to use its lawful powers,
free of any condition, restriction or claim of another
is an essential condition of sovereignty, and the
National government should never surrender or
qualify its power in this particular. In offerjng the
new loan, citizens and subjects of other govern
roents should receive tho' stiongest assurance that
the interest and, principal are to be paid in coin,
according to the terms of the bonds issued, without
deduction or abatement whatsoever.
In order to avoid the necessity of employing
agents for the negotiation of the -loon, I
respectfully recommend that a liberal commission.
be allowed to subscribers, and that this who tirst
subscribe be permitted to select the Mass of bonds
in which their subscriptions respectfully shall be
made. • I further recommend, in connection with
the proposed loan, that the banks established under
6 ' the act to provide a national currency," be re
quired to substitute the bonds that may be issued
under the proposed loan act for those now deposited
as security for the redemption of their bills. Should
any bank be unwilling to accept the new condition,
proviMon should be made for the surrender of its
charter, and authority - giten for the organiza
tion of new batikS to • supply the deficiency
thus created. An essential condition to the success
of the proposed new loan is the continuance
of the present revenue system. A chief means
by which the present holderirof the five-twenty
bonds can be induced to surrender them and receive
a bond upon longer time, and at a. lower rate of in
terest is the certainty furnished by the magnitude
of the national revenue that these bonds are soon to
be redeemed. We must be Prepared to offer them
the alternative, either of accepting the 'new bend at
Mower rate of lterest or payment of the principal
of the existing bonds. When the live-twenty •bonds
shall have been funded to the amount of $1,000,000, ,
000 or $1,2000,000,000, the revenues can be reduced
materially, and yet sufficient sums be raised to meet
the ordinary expenses of the government, to pay the
interest on the public debt, and also to pay $25,000,-
000 to 50,000,000 of the principal annually, should our
success in negotiating a new loan be equal to ruy , ex
pectations, based upon the fact that the ability and
disposition of the people of the United States, to
pay the public debt are sufficient to Justify us in
assuming that the bonds of the United States will
!oeorntuand the highest rates in the markets of the
_
world
We Alan then be in a condition to enter.
upon the 'Work of reducing the tax at the commence
wig of the 'wit session of (kmgrelis.
On the 30th of June. 1868, the amount of out-
*standing three per cent certificates and compound
interest notes convertible into three per cent. cer
tificates was $71,604,890. on the 30th of June, 1857,
the amount outstanding was 854,991,410, showing a
reduction of $16,413,480 in that form of indebted
ness. On the Ist of December, 1869, the amount
outstanding was still further reduced to $49,716,150,
showing a total reduction in seventeen months of
$21,888,740. The three per cent. certificates, to a
considerable extent, for United States notes, being
largely held by the banks as a portion of their re
serve, and thus indirectly, though • not to
their full nominal value, they swed the vol-
ume of currency, I recommend that provision be
made for the redemption of the three per cent. cer
tificates within reasonable time, and, as a compul
sory measure for the reduction in the amount of
currency which would thus be caused, that author
ity be given to grant charters for banks in the
States where the banking capital 1$ less than the
share to which they would bo entitled to au amount
not exceeding thirty-five millions of dollars in the
aggregate. The redemption of tho throe per cent.
certificates and the additions to the banking capital
might be so arranged as not to produce a serious
disturbance inlthe finances or business of the coun-
. . _
try, while additional banking capital would be sup
plied to the sections now in ueed of it, and this with
out enYincrease of the volume of circulation.
There are two 'evils in the present banking system
which require remedy by prompt and aliment leg
islation. The first is the practice on the part _of
banks of allowing interest upon deposits. The
effect of this prantice is that moneys in the bends
of, individuals which otherwhie might be loaned for
regular mereantile'and other builnesspurnoseli Are
diverted into the custody of banks, upon the idea
that if the security is not' better; payment can be
secured at a moment's notice. ' Country banks, and
'others reMote from large centres of trade, having
received fnolic,xorateposit for which they pay biter.
est. are anxious to transfer such funds, to other
_ - -
hernia ftoin whleh,they will receive an equal or
larger • rate of interest . in return. They
¶I'HE DAILY E V ENING TU/SDAY, DECEMBER 7 ' , '. i
iire istiMUlated Inge by the 'desire tO 'Mad& ' ,ratiotistri7Jtilon soldieta while! prbidtlets or "war,
,
their funds where they can be at all UMW; elms Claims (Or At/Tidies fultialled the, arMy during the
mended. Thue influenced, large r sums areplaeor n s war; &Mounting '! to '82,899;806.13, hays been
'on - deposit 'With banks' in the ciEnee, and Wipe- I, reeelvedsof which 828 8 ,033.87 ' have Ihelezt allOrred, '
* Melly the city of New York,.vrhiebta the great ben . - 1 and 82,58400.13 have beer, relected. , r, •,. • ,
. tre of trade and.finatiee for the. Atlantic coasts In ' • - ' " 'lif RDICAL DP,PAnTIIIKST: '
' thy ordinary coatis) of trade' the Currency of the , ' The Catrent expendituresof the Medical Depart-
• eountrytends'ilipidlYto the n cltiel, &mitt lil 'Ontelse' 'Meld during the fiscal year, ending June 30, 1869,
,to stimulate this tendency by artificial means, Lint i, Isere 11233;ii61.21 ; the tidal Sikpenditare' oft!at de= the evil does not cud, with the impoverishment of I ,partment,,,inclutling fiwar, debts '! - and s.refund-,
the coutitry,'Lis the banks in the city Mays be called . Ments,"„was•o7oB,3os.3B, and the available balance
uponat any moment to respondlothedrafta of their' I
'on hind at the &tote of tlio year waif 81,792,050.73.
,depositors, they decline to snake Wallis repreamatipg Thermalth,of the troops has boon good. The total
spelt funds` upon commercial paper payable on tinle, 1 'nurricher dr gitBpB on the,afek-list during the year was
bat insist Open Making etillitranitoits they are termed ,
'lOOB6. ; The average ntithbert'n constantly on stek
;with government bonds or other obligation& pledged I -report,was 2,347, or about 5.6 percent . , The nam
-ea collateral security. Merchants, will,not btirrow',l tier of : deaths was 598, Of diacharges for disability,
money in large 'sums ' payable On 'demand.. The r1;128... ..,,, , . _.. , , , , f
'oensequence is that the moneys thilif atieumulated i ' The nuMber of commissioned medical officers for
in the city banks, are loaned to persons engaged !duty Oil June 80, 1869, was 101, being_ an 'average of
in speculative purposes. The extent of this evil . '
ono medical ollicer to 204, men- The number of
'la seen in- the fact that of the bank loans di -, posts was 239, besides detachments ' and outposts.
the city,' of New York s , in Ottober, 1868, ' 7 here are now two vacancies of stirgeons andlortY
-898,000,000 were upon comnioreial paper and *68,-, ! two of assistant surgeons in the medical corps.
00,000 upon demand, with a pledge of collaterals ; ''' Pay Ilepartinpnt., '
and in. October, 1809, 899,000,000 were upon commer The Paymaster-General presents . 'the following
cial paper and *59,000,000 un, demand. In the summary exhibit: , • .
'former year 41 percent. and i po n the latter year :}7 Balance in handset Paynlasters at the
per cent of the loans Made by the New York batiks beginning of the fiscal year July 1,
were upon demand. A further, result is seen in the lidit4. .. $5,981,578.14
fact that parties borrowing money upon, eommer- Received from the Treasury during '
cml paper for legitimate commercial 'purposes' pay the fiscal year ' 36,215,000110
fronts to G"per cent, additional interest per annum Ileceived by Paymaaters from other
as compared with . persons who borrow money for , Sources, exclusive of sums transfer
speculative purposes. 'I, therefore, respectfully red among themselves,
'recommend that a law be passed prohibiting abso
lutely the paym
a ent of interest by banks upon, de-
Posits, and limiting also their loans upon collaterals
to an amount not exceeding ten per cent. of their
capital. _ - . - - •
.I. am satisfied also that the practice of certifying
checks, even When funds are in the bank to the
credit of the drawer of the check, is fraught with
eviland that it ought to be entirely prohibited.
Tice following statement exhibits the receipts and
expendithres for the fiscal year ending June 30.
181s9; Receipts for customs. *180,048,420.63 ; inter
nal revenue, $108,3511,460.811; lands, $1,020,311.34;
direct tax, :$765,685.61 ; miscellaneous sources, 51,27,-
752,829.77 ; total, exclusive of loans, *370,943,747.21.
.Expenditure--civil service, 856,474,081.53 ; pensions
and Indians, 8.35,510,541.84 ; War Department,
*78,501,991.61; Navy .Department, $2(1000,75797;
interest on the public debt, 8130,691,242.80 ; pre
nduru on 7 3-10 U. 8: Treasury notes, 8300,000 ; total,
exclusive of loans, e.321,590,1:07.75; receipts in ex
cess of expenditures, $49,453,149.40.
The following statement exhibits the receipts and
expenditures for the quarter eliding September 30,
186'9: Receipts—Customs, 852,598,921.86; internal
revenue, 847,926,352.51; lands, 88S:3,864.08; miscel
laneous sources. $7,412,483.57; total, exclusive of
loans, 8109,5/53,162.63. Expenditures, after deduct
ing the ametnit of repayments by disbursing officers
and others—Civil service, 815,102,202.06; Indiana
and pensions, 613,547,912.79„ War Department,
*13,505.468.05; Navy Department, 85 782,taa 98; •In
terest on the public debt, 837,462,280.74; total, ex
clusive of loans, 585,480,514.09; receipts in excess of
expenditures, $.13,3.51,107.43. The estimated re
ceipts. and expenditures for the three remaining
quartered, of the fiscal year ending June 30,.1870,
are as follows : Iteceipts for customs, 8135,000,000;
internal revenue, $127,000,000: lands, 84,000;000;
miscellaneous sources, 820,000,000;• total, $286,-
000,000. Expenditures—civil service, 640,001,000;
pensions and Indians, 821,000,000; War Depart
ment, 840.500,000; Navy Department, 814,000,-
000; interest on the public debt, 893,750,000; 'total,
8.209.250,000 estimated receipt in excess of expendi
ture, $76,750,000; estimated receipts and expendi
tures based upon existing Jaws for the fiscal year
eliding June 30, 1871: Receipts—customs, 8185,000,-
000; internal revenue, $175,000,000; lands, $5,0e0,000;
miscellaneous sources, *28,000,000. 4 Total, 8393,000,-
000. Expenditures—sivil, Foreign and liiiscellane-
Mu!, $60,000,000; Interior, Indians and Pensions,
846,000,000; War Department. $59,000,000; Navy De
partment, $18,000,000; interest, on the public debt,
5127,000,009. Total. 8291,000,000. Receipts in ex
cess of expenditures, 8102,000;000. The foregoing
estimates of receipts are made upon the assumption
that the taus now in force relating to cos-,
torus and internal• revenue will not be so changed
as to materially affect the revenue, and the esti
mates Ur the expenditures are based upon the ex
pectation that no extraordinary appropriations will
be made
G conoE S. Bout . tect:l.,
Secretary of the Treasury
Report, of the Secretary of War.
WAR DEPART:AU:TT,
WASHINGTON CITY, November 20,1569. C •
Mn. PRY.SIISr.NT : I have the honor to submit
my report as Secretary of War, together with the
reports of the General of the Army, and the differ
ent bureaus of the Department made since the last
annual retort. ' •
I took charge of the office on November 1, 1869,
relieving the General of the 'Army, who had, with
marked zeal and ability, performed its duties since
the death of Secretary John A. Rawlins, on Sep
tember 6,1869. Of General Rawlins it can with
truth . be said that the virtues of true manhood
characterized his life as soldier, citizen, and
statesman, while on the records of the Department
will ever remain the evidences of his high honor,
his patriotism, and his sagacious judgment.
During the month ,pf Octeber the - General of the
Army was acting as Secretary of War, and the'
annual reports, which were by his direction ad
dressed to the Adjutant-General of the Army,
have been, with his own report transmitted to me.
As the duties of the office were assumed but a few
days prior to the date of this report, few recom
mendations will be made at length, but the mate
rial matters of the reports presented will be refer
red to as concisely as possible.
THE RE:PORT OY THE GENERAL OP THE ARMY'
gives a clear view of the administration of the
army, and is very full, both m the statement of its
present condition and recommendations for its
future organization. Its Importance is such that a
synopsis cannot justly be givem. The recommend
ations of the General of tae Army as to its future
organization are presented for' your consideration
without abridgment. He refers fully to the re
ports of the heads of bureaus. The remarks made
by myself as to these will be found embodied in
the abstracts of the reports hereinafter referred to.
Ile endorses the recommendation of the Adju
tant-General of the Army for the repeal of so much
of section six of the, act of March 3, 1869, as pro
hibits further appbhitment or - promotionsileaving
the organization of the Adjutant-General's Depart
ment as it was fixed by section ten of the act of
July 28,1866. An increase to the number or Assist
ant Inspectors General is recommended. With re
gard to the Bureau of Military Justice, the Secre
tary says :
3 he Judge AdvOcate-General reports the number
of records of military courts received, renewed
and registered to be 14,944; number of special re
ports made, 1,352.
I,WAIVI'ERMASTER'S pEPARTMINT.
The expenses of the Quartermaster's Department
during the fiscal year ending June 30, 1669, were
$21,9t8,464.08, a reduction of fourteen and a half
millions below those of the preceding fiscal year,
In February, 18t9, the number of civilians hired
by this department exceeded ten thousand, which
has since been reduced to four thousand. Five
hundred line officers have done duty in the Quer
terniaster':, Department, hi addition to the officers
of that establishment, eighty-four in number.
The report states that the clerical force of this
office has been reduced so low by late legislation as
to seriously retard the public business, and to pro
vide for the settlement of accounts, some increase
in the force is necessary.
" A building capable of accommodating all the bu
reaus of the War Department, fire-proof and secure,
is much needed. The monthly rental of buildings
in Washington and lots occupied by buildings owned
by the United States, amounted to $4,264.19, being
a yearly rental of $50,954.28. ,
The rallWay- companies, to which the military
railroad material of the Quartermaster's Depart
ment was sold on credit 'at the end of the war, in
curred a debt originally of 57,591,406. Interest lois
increased this amount to $9,000,000, about one-half
of which has been paid; but some railroads being in
default, and, showing no disposition to meet their
obligations, suit has been lately ordered to he
brought adainstthem.
But few vessels have been owned by this Depart
ment during the year.
The railroads of the country, having declined to
adhere to the war rates of transportation, have been
paid during the fiscal year upon their general tariffs
with a classification of military supplies settled in
conference at a convention of general freight
agents. Therehave been paid for water transporta
tion during the year, $1,424,222.82., and for railroad
transportation $2,253,304.30. Of this amount $933,-
166.21 was paid to the Pacific railroads, one-half
being paid in caah,and the other half retained in the
Treasiny to meet the interest on the bonds guaran
teed by the United States.
liv arrangement between tho Departments of War
andthe Interior, supplies for the Indian service aro
:now transported by the. Quartermaster's Depart
ment on routes in the Indian territory—the actual
cost, under the contracts, being refunded to the
War Department out of the appropriation Of $2,000,-
000 for pacificatioirof the Indians, granted April 10,
2869. ' Althotigh the amount of clothing and equip,
age on hand attire end Of the war has been reduced
by sates , and , issues, there still remains a stock
valued at over $42,000,000.
There are 72 national cemeteries and 313 local
post or private .cemeteries. in which soldiers lie
buried, The titles of 71 of the national cemeteries
have been approved as perfect 'by tho Attorney-
General; 322,607 interments aro reported, of which
171,946 have been identified. The expenditure on
this work has been nearly $3,000,000.
BIIIIEUSTIENCIC IMPAUTIffENT. '
Susistence supplies for the army have been
mainly procured in the large market cities of the
country. The average cost of the ration at these
markbts'has been about.23.cents. Efforts to procure
salt meats on the Pacific coast for troops stationed
there have met with .great success, supplies of
excellent quality having been obtained at favorable
prices. Tobacco, at an average monthly value of
$19,000, has been furnished to the troops at cost
Tricot,' and the Freathaen's Bureau has been sup
plied with stores to the value of nearly 6259,000,
most of which has already been paid for, and the
remainder is in process of refunding at the
Treasury. < The - issues to Indians at various points
have amounted to more than $150,000, and, at the
request of the' Interior Department, stores valued
at $57,500.-were issued to destitute .osages and
others, to prevent starvation during the winter.
There has been $27,621.75 as commutation on
Total to beaceounted for
..
.Accounted for as follows :
Disbursements to the regular army. : . "81.13,678,250.61
Dlibursements to the Military Acade•
Disbursements to -vim:tears (back
pay and bounties).
'Mal disbursements
Amount refunded I o Treasury •
Balance in hands of Paymasters June
30, IVA
Total..
The dfsbuniementS for reconstruction purposes
are $2,613,293.46, and the balance in hands of, pay
masters October 2,1809, are $110,613.70.
The total amount disbursed by the Pay Depart
ment for additional bounties, including those set
tled by the Second Auditor and paid by the depart
ment on Treasury certificates, from the beginning
to the 30th June hut, Is $07,2'40,100.
ENGINEER. °EPA lITYLENT,
The report of the Chief Engineer gives a" detailed
account of the operations of the Engineer Depart
ment, and of the means required to exeunt° the du
• tics devolved upon it. The officers or the Corps of
Engineers, aided by details from other arms of the
service and a number of civil engineers, have been'
engaged upon the permanent national defenses,
survey of the lakes. river and harbor improvements,
explorations and surveys, command and instruction
of engineer troops, and in charge of public bad'.
ings; grounds, and works in the District of Ccilum
bia. Twenty-two officers of the. corps have been
doing duty in the several military divisions, depart
ments, and districts, in the light-house establish
ment, and as instructors at the Military Academy.
Work has been continued on the permanent de
fenses to the extent permitted by the small balances
remaining of old appropriations. These have been
exhausted for the most part during the year, and
the works have consequently been closed up. -
The battalion of engineers maintains its efficiency
in drill and discipline, and in the duties of its spe
cial arm. The engineer depots, for the collection
and storage of pontoon trains and other engineer
equipments, have been well advanced toward com
pletion.
The th , eal affairs of the Opinance department
during the year ending June 30, 1869, were as fol
lows:
Amount available from all sources .... . . 518,283,813
Expenditures since June 30. 1868 2 757,325
Turned into surplus fund ;. 1,000,000
In Treasury, not credited to appropria-
tion. 701,752
In lepositaries, to credit of disbursing
officers, June 30, 1869 425,529
In Treasury on June 30,1869 13,369,206
The expenditures of the department during the
year included over 5500.000 for war claims,and about
5N32,000 for cartridges made for the Navy depart
ment and net yet paid for.-
The enlisted force of the department has been re
duced from fifteen hundred to seven hundred and
fifty. There are sixty-one officers and fourteen
ordnance storekeepers in the department, „and of
these officers, six are on detached.duty.
The cavalry have been supplied with Spencer car
bines altered to use the musket metallic amirmhi
thin. The infantry, heavy artillery and engineers
have been armed with th 6 Springfield breech-load
ing rifled musket. All these arms have given great
satisfaction.
=ll2
Instruction has continued in the several military
departments during the.vea.r, the purpose being to
so diffuse a knowledge of the service and distribute
apparatus that every officer may have such infor
mation of the duty as may suffice, in case of emer
gency, to save life in or prevent disaster to his com
mand, The signal service has been brought into
active use hi operations against Indians on the
I , IIEP:DIiIk:N t FI BUIMATI
The operations of this bureau have been cloited.
except the educational and bounty divisions, and
two hospitals for freedmen. The number of officers,
agents and clerks,
has been reduced from nine
hundred and one to one hundred and fifty-eight.
No further reduction Is practicable so long as the
present operations shall continue. • • '
The bureau has had under its care, up to June
30, 1869, 584,178 persons. All the hospitals but two
have now been closed or transferred to the civil
authorities, and one of the remaining two is about
being closed. There will then remain but one,
which is located in the District of Columbia, and
cannot be dispensed with at present.
The expenses of the bureau were met the first
year with the proceeds of rents, sales of crops,
school taxes and tuition and the sale of Con fede rate
States" property. The amount received from all
these miscellaneous sources was $1,865,645.80, and
from appropriations by Congress since July, 1866,
$11,084, making a total of $12,950,395.80 receiv
ed from all sources. The expenditures, including
the accounts of the " Department of negro affairs,"
from June 1, 1865, to August 31, 1869, have been
$11,191,028.10.-- In - addition -to this, subsistence,
medical supplies, and quartermaster supplies, were
experided, amounting in cash to $2,330,758.72, but
whose real value when transferred to the bureau
was probably less than one million of dollars. Ad
ding their original cost to the cash expended, the
total expenses of the bureau have been $13,524,
810.e2. Attention is called to the recommendation
of the report that the hospital in this District be
continued, and that the payment of bounties be
continued, by thisor some other agency, until all
should have a reasonable time to present their
The report of the Board of Visitors to the Military
Academy for the present year is °neer unusual im
portance and interest. •The condition of affairs gen
erally was found to be all that could be desired or
expected under the present organization of the
Academy, but the organization itself, which has re
mained unchanged since the days when the army
was but 10,000 strong, and the nation was very far
below its present size and importance among other
nations, is declared to be inadequate to meet the
rotate demands of the conetry,and a reorganization
is accordingly recommended : The institution to be
greatly enlarged; the number of cadets greatly in
creased; the standard of admission to be raised; and
the cadets to be divided into two classes—one pur
suing au ordinary course of military instruction,and
Its members returned to civil life upon graduation,
to spread a knowledge of the, military,art through
out the land, and supply trained officers for the
emergencies of war; the other, selected from the
promising members of the former class, and equal
in number only to the yearly wants of the army, to
pursue their studies and practice to the Very limits
of military science.
The estimates for the support of the Academy
during the coming fiscal year amounts to 5332,201.20,
of which $212,019.20 Is for pay and allowances of in
structors and cadets:
:iiii.vrAnY DIVISION OF TRH MISSOURI.
This division, Commanded by Lieutenaut"Goneral
'Sheridan, embraces the Department of Dakota ;
the Platte and the Missouri, commanded respec
tively by Major-General W. S. Hancock, Brevet-
Major-Oeneral Augur, and Brevet Major-General
Schofield. These three departments cover a terri.
torry of great'extent, in which most of the civil
ized, semi -civilized, and wild Indians abide,
and
include the States of Illinois, lowa, Missouri, Kan
sas, Nebraska and Minnesota, and the Territories
of Colorado, New Mexico, Wyoming, Utah: Dakota,
Montana and the Indian: The administration of
these departments has been ably and economically
conducted, but the number el' troops now'on ditty
in them is deemed insufficient, with the present re
dmed.strength, of companies, to meet the wants of
the service.
The troops at the different posts throughout this
divisiontare quartered comfortably. The expenses of
the coming year will be much less than for the past.
A detailed report of the military operations in the
department of the Missouri accompanies the annual
report ot General Sheridan, and covers the opera
tions of, troops up to the 15111 of October, em
bracing ming conthats,• in which the number of
Indians killed was ninety-two, number wounded
Unknown. number of soldiers • killed six, and.
wounded ' ten; nusuber of civilians—men, women
and children- murdered by the Indians, was
seVenty-nine, and nine wounded. •
MILITARY DIVISION ON THE SOUTH,
This division, under the command of Major-Gen
eral Halleck since the 17th June last, is composed
of the departments of the Cumberland, of UMW
ana, of Mississippi, and of the South, conunanded .
respectively by Brevet Major-General Cooke, Eire
vet Major-litioneral Mower, Brevet Major-General.
Ames, and Brevet Major-General Terry, and, In
cludes the States of Kentucky, Tennessee ' West
'Virginia, Arkansas, Louisiana, Mississippi. Ala
bama, Florida,Georgla, and North and South Caro
. " '
Tho principal occupation of the troops in this
diY lBl 9 ll /AS been in assisting revenue officers to
execute the revenue .laws; assisting United Stites
marshals in 'executing the process of the United
States courts; in enforcing the laws relative to the
civil rights of freedmen, and all laws, for the pro
tection of life and property.
MILITARY DIVISION OP THE ATLANTIC.
tvlelon formerly coueisted of the depart-
80.EBT.
rileitta Of the East; the Lakes, ` 'and of Washington.
under the command of Major. General 'Hancock,
'oUbsequently Major-Heneral Meade,was placed. in
, c.Onirriand, the Departtaent Of 'Washington* broke
up and attached to the Department of the East,and,
the .First Military district incorporated In, Dui divi •
-
sion. which now erahrices the titatee'Of Ohio,
Michigan, Indiana , and Wisconaithi.thlt,New Eng
land States, New York„New Jersey, Penntlylvania.
Maryland, Delaware, and the District ,of
of Columbia, , ; . , • ',
Ipp the Dep artment eethe East and the Lakes the
duties have been, principally, the' charge and ears
of the sea-coast and lake frontier• defenses, and the,
pfeVentlon of any attempt to violate the neutrality
laws; and, in one instance, in sinstaining the United
States authorities before the parts.
The dlicfpline and candition of the' troops are re-'
parted by:the division commander to be good. ,
DIVISION Ole TUE PACT fflJ
This diviSion; which has been commanded by
Major-General Thomas since the ist of June laei
cemprises the departments of California,Columbia
Md of Alaska, commanded respectively by Brevet
ajor-General Ord,, Brevet Major-General Groot(
u Brevet Major-General Davis.
personal Inspection of the geeater part of the
territory embraced in his division was made by .
General Thomas, and the fruits of his observations
are embodied in his report, which is of a charactez
so Interesting and valuable as to make an abstract ,
of it here undesirable: HlB recommendation, that
the seal islands of Alaska, St. Paul and St. George
be sold, being based on substantial reasons, should,
in my opinion, be carried out. '
2:18,192.06
This district comprises the State of Virginia, and
was at the date of the last annual report, commanded
by General Stoneman; who was succeeded by Bre
-vet Major;Gen6ral Canby. : . On the first of October
the number of troops in this district, was one hun
dred and live officers and one thousand four, hun
dred and seventy-eight enlisted men; the Present
effective strength of the command is ninety-nine
officers and one thousand and seventy7seven en
listed men.
.842.161.770.21)
185,258.78
19,918,635.43
538,782,141.82
48,946.37
The total number of civil officers In the State af
fected by the joint resolution of February 19, 1869,
was six thousand and sixty-one, and of this number
only eight hundred and eighty-live were found in
office who could qualify under the law Of July 2,
1882, leaving live thousand one hundred and seven
ty-six appointments to be made. To the Ist of Oc
tober last, three thousand and seventy appoint
ments have been made, and of these seven hundred
and eight have declined, resigned, been removed,
or. have failed to qualify; leaving two thousand
three hundred and sixty-two now in office, and two
thousand eight hundred and fourteen vacancies.
It has been found difficult to find suitable persons
willing to accept offices the duties of which yielded
no compensation arid, interfered with their ordi
nary business, arid embarrassment was occasioned
by the social and political pressure brought to bear
upon native Virginians who were suggested or re-.
commended for an'office that involved the necessity
of taking the oath prescribed by the law of July 2,
1862. However, with few exceptions, the county
organization is so far completed as to be in working
condition.
" 32643.677401
542,4134,771).26
In the Fourth Military District, the employment
.of troops beyond the ordinary routine of duty has
been confined to an expedition for the purpose of
arresting lawless characters, guilty of murder or
other serious offenses. Supported by public opinion,
a few men, in defiance of the law, commit murders
and outrages, and civil officers are unequal to the
task of bringing thorn to justice. Guarded and pro
tooted by their ueighbort, their arrest becomes very
difficult, and the assistance of troops is demanded.
The parties injured er their friends rarely under
take to aid the civil or military authorities, and if
SO, hesitatingly and secretly. ,
In the Fifth Military District, Indian raids dur
ing the year have been unusually bold', and, it is
believed commanded in most instances by hite
men. Heavy damages to the citizens in live stock
and property have resulted, but the loss of life has
been small, amounting to about twenty-six per
sons.
It will be Impossible to prevent Indian raids as
long as there'are wild Indians not assigned to any
defined territory, and protection to the frontier
cannot lie afforded with the force in the district.
owing to the numerous demands made upon it in
the execution of the reconstruction laws. Volun
tary county organizations of citizens have in some
cases been authorized and proved effective in some
localities, but in others the arrangement has not
met with cordial response from the people. _
Depredations in the country between the fences
and Rio. Grande, which is sparsely peopled, and
devoted Chiefly to the raising of cattle, have been
'numerous. The offenders, Indians and Mexicans,
generally come from the south side of the Rio
Grande, and the stolen cattle are conveyed there
for sale. Orders have accordingly been issued di
recting that the erossi,ng of cattle shall be limited to
specified points, but a sufficienttirae has not elapsed
in which to test the efficiency of this regulation.
The evil threatens to become one of such magni
tude as to demand a referencato the government of
Mexico.
The ordinary civil machinery, of the State, has
been in operation, aided, whenever necessary and
practicable, by the military force of the United
States. Improvement is apparent in the disposition
of juries to punish for murder and other high
crimes. Military aid has been furnished to civil
authorities to suppress hands of desperadoes who
infest the State.
APPROPRIATIONS, EXPENDITURES AND ESTIMATES.
There was carried to the Surplus fund
June 30. 1869, the sum of 868,239,177.93
The actual expenditures for the fiscal --
year ending June 30, 1869, were, (in
cluding the Freedmen's 8ureau)....856J431,732.16
To which must be added, for old war
debts paid, the sum Of 23,882,310.60
Making the total expenditures 580,644,012.76
Of the above there . was expended for '
reconstruction purposes $406,419.18
There was appropriated for the service
of the War Department for the fiscal
year ending June 30, 1870 37,538,852.08
The estimated deficiencies are 2,9-10,000.00
The total estimate of military appro
priations for the year ending June 30,
1871, is 31,531,^31.30
In the foregoing estimate, the amounts origiaally
presented by the heads of bureaus, have been ma.
terially reduced, and any appropriation smaller in
amount than that asked for would fail to meet the
necessary wants of the department.
The following estimates are submitted separately,
and are given, for the consideration of Congress, as
presented by the Chief of Engineers:
For fortifications $1,190,400.00
For rivers and harbors 7.901,900.00
Total $12,158,300.00
As to the fortifications, I urge the appropriations
asked for the forts near the larger cities named in
the report of the General of the army, to wit : Port
land, Boston, New York,Philadelphia, New Orleans
and San Francisco.
The- amount required for public build
ings and grounds and , Washington
aqueduct, as estimated by the officer
in charge, is ' 51,021,352.00
'Which has been reduced,iti the estimate
presented herewith, to
"" 498 970.00
The expenditure for the year, upon which tile re
duction of the estimates for. the next tiscal year is
based, is reliable evidence of the economical man
agement et the Department. ,
WILLIAM W. BETA,: NA r,
Secretary of War.
Report of the Secretary of the Navy.
NAVY DEPARTMENT,
WASHINGTON, December 1, 1869. 5
SIR: I respectfully submit the following report
of the Navy Department, and the branch of the
public service under its supervision, during the last
year:
NAVAL POI[CE IN MARCH, 1869.
When my immediate predecessor came Into office,
on the 9th day of March last, the navy ofthe United
States consisted of two hundred and three (203) ves
sels of all classes, and in every condition. These
measured one hundred and eighty•threo thousand
four hundred and forty-two (183,442) tons, and were
calculated to carry, when in commission, thirteen
hundred and sixty-six (1,366) guns, exclusive of
howitzers. Of these ships ono hundred and fifty
one (151) were wooden, and fifty-two (62) were iron,
clad or monitors. Of the wooden ships thirty-two
(32) were sailing vessels; fifty-three (53) were steam
ers, with some auxilliary sail-power; forty-four (44)
were Mourners, without any efficient sail-power; and
twenty-two (22) were without sail-power of any .
kind. The iron-clads are all steamers, relying
wholly on steam; under all circumstances.
Of all these chuises only forty-three (43) vessels,
includin store-ships, mounting three hundred and
fifty-slx (386) guns of every calibre, wore attached
to • fleets or returning , therefrom. Six (6) more
mounting thirty-six (36) gunS, were In commission,
for speciatservice; and six (6) others at the various
stations as' receivng-ships. • These, together with
fourteen (14) tugs and small vessels, attached to the
various navy-yards and stations, constituted the
whole force of the navy at that HMO effective for im
mediate service. It has since been found necessary
to offer for sale, on foreign stations, three (3) of
these vessels, which were condemned' as unfit for
service and unsafe to send home; and twenty-five
(25) more of them have been ordered home to the
various navy-yards for repair and alteration, or
sale. But one ship, the Juniata, at Philadelphia,
was under repair at the tune of the coining in of
the iiresent,udministration. The remainder of the
navy not in commission consisted of—.
First. Forty-six (40) iron-clads and monitors of
every class, laid tip at varioult stations, none of
which could be got, ready for service without
thorough, overhauling and expensive, repairs to
hulls, turrets, and machinery, thirty-two (32) of
*which have lAcriT condemned and ordered to be sold,
as rot adapted. to our service; twenty-six (26) of
them never having been in commission.
Second. Twenty-two (22) vtels of every class
yet on the stocks, and on wide work had been sus
pended,
Third: Sixty-six (06) vessels laid up in ordinary,
or,unilt for active service in'the future.
CAMINO i3TATIONS AND DilTOOl, AND Fottop OP
EACH, IN mencir, MD.
" For the better distribution of our force theteld of
our naval operations, is divided into five cruising
stations, known respeetively as the North and South
Atlantic, the Pacific,. the European, and the
Asiatic.
The extent and limits of these stations are• care-
PIRAT NILITARY DIPTRICT
itiirrAhVlso4TitlOT
==!
fully defined, and maybe 'readily traced; a`oul to
each are assigned such proportions of the available
force as the extent and eircumstancee of each ntay
• "ronithoo to time require* •
The' North Atlantic ,snuadrOn consisted, on the
9th of March last, of six,(6i'Veoltels, mounting in all
twenty-eig O
ht (28) guns, the whole under the w
mand'of Rear:Admiral Hoff'. .. •
the - South Atlantic - squadron, chargeof OW
imporfatit interests these waters o was, at the data'
last mentioned, under the command of Rear-Ad.i,
miral Davis and consisted of six (0) vessels, meant- ,
ing in all flity-elx (56) gnus.
The Pacilic )(fatten on, the date last mentioned Wee
divided into two squadrons, ddnitininated the North,.
Pectin: sod, South. Padilla squadrons; coinniatided
respectively by Rear-Admiral Craven and Resit-.
Adniiral Turner—the North Pacific Squadren con-
sitting of eight (8) vessels, mountin,in all, severitY-::' u.
eight (78) guns; and the Smith Paci fic tqnadron,cott,
sliding of six (13f vesseliftnotinting,in all,ferty-nine
'he European .squadron, commanded by Rear-,
Admiral. Radford, 'and consisting; at the date
afore
said, of seven,(7) vessels, moataing, In all, eightyw
five (85) guns, represented the naval power of our
country on the ceastsand in the ports of all the great
nations or Western and Southern. Europe, as,Well tie
those of Northern Africa.,
The Asiatic station was protected by a squadrons
made up, on the date hist mentioned, of tea (10)
vessels, mounting sixty (50) guns, under command
of Rear-Admiral Rowan. ' • •
INADEQUACY ON FORCE. ,
It will be seen at a glance that these cruising sta
tions comprise within their limits most of the ports
and seacoasts of the known world; and that,, in thus
establishing them, our government has attempted
to extend its influence and protection over every
field into which, allured by trade or 'science, or in- •
spired by religion, an American citizen hen been -
able to penetrate. But it is also apparent that the:
means employed were utterly inadequate to the ends
to be attained, and that oar small fleet on these sta
tions, consisting of forty-three (43) vessels, mount- •
ing three hundred and tifty-six (356) guns, with a
tonnage of forty thousand and fifty-two (40,052) ,
tons, was too• small in number, and too weak in
character, force and condition to perform the ser
vice required by the ideas of the government 'and
the expectations of our people. Cruising on the
same seas and with duties not more various and ex
tended, France has over one hundred and fifty (150)
ships in commission, of a tonnage of 250,000 tons ;
while England has, crowded in the same area. obt
less than one hundred and ninety-one (191) ships,
with a tonnage of 328,000 tens,with her flying squad
ron ready to reinforce her power whenever occasion
may , require.
CONDITION AND EFFICIENCY OF SIMS ON STA
TIONS.
Of the forty-three (43) ve ssels which composed
these several fleets not more than eighteen (18) were
in condition for real service; some have been con-.
demned as unseaworthy, and almost all required
considerable repairs to bring them to their most effi
cient state. The efficiency of this small force,niore
over, was much lessened by the fact that most of
them were steamers, without adequatesail power.
IIONITOIL FLEET.
Our effective force was still further reduced by
the fact that our monitors and Iron-clads. laid up
- Since the war, had received in the meantime little
care. They were found, when the attention of the
department was directed to them, in a state of rapid
deterioration. •
WHAT HAS PINCE BEEN DONE.
. _
It will appear from the foregoing statements, that
while there were no ships at the yards at home
ready for sea, or which could be. made effective
without considerable expenditure or both money
and time, a large, proportion of those on foreign sta-
Mutt, needed extensive repair and alteration. To
meet these . difficulties, work was renewed vigorously
at all the Favy-yards; and as fast as possible our
ships iii ordinary were put in condition for service.
Those in commission have undergone the same prof
cess as fast as they could he spared fr'om their sta
tions. More than one-half of the whole Pacific ,
fleet have been, or are being repaired at Mare
Island. Nearly all the vessels of the North Atlan
tic fleet have Veen sent liome from time to time for
the same purpose..
To secure the grdatest amount of efficiency, with
greater economy at the same time, all the steamers'
susceptible of it, which have been repaired or fitted
out, have been given full sail power and re-rigged,
so.that without interfering with their speed - or effee
tiveness under steam, they are now entirely inde
pendent of it, and, are able to cruise wherever re
quired, or, if need be, to go round the world With
out deterioration of boilers or machinery, and with
. out consuming their coal, which is thus reserved
for times of necessity or danger- The - ship-rig,
considered the most efficient for cruisers, has been
already given to forty vessels of this class, which
have been or are now being altered. The success
of those 'which have been completed, including
among their number, as marked instances; the
Severn, Juniata, Mohican, Nantasket, itesaca,
. Lancaster and Swatara, has illustrated the wisdom
of the Van. Tho result has already been a large
.saving. Severahof our most effective cruisers have,
consumed no coal since the receipt of the order. it
can be shown by figures, that this system of giving
and requiring the general use of full sail power,
besides its effect to make sailors of both officers and
men, will, on the vessels intended to be kept in
commission (calculating that they cruise bat two
thirds of the time), make in the item of coal alone,
as consumed' under the old system, a saving of
more than two millions of dollars per annum.
Our monitors and Iron-clads were also placed in
the hands of the mechanics and put in thorough
repair: Four of the largest have gone into commis.
Won, as part of our available cruising force, and
the rest are kept, at small expense, in complete
order, so that the whole fleet can be ready for ser
vice-in a week's time. • •
Of course so much work could not be done with
out considerable expenditure of money, bat by close
economy, and a system of strict accountability, the
SUM of this expenditure has,up to the present time,
keen kept considerably below the amount of the
expenses of the department for the same period of
the last year. Since the Ist of March, 181r2, no less
than eighty (80) vessels of every class have been
repaired or altered, or put in process of repair at
the various navy-yards,yet the books of the Treasury
will show a decrease in the expenditures of the de
partment for that time, as compared with the cor
responding period oelB6B, of three million five
hundred and 'twenty-one thousand eight hundred
and twenty-two dollars and ninety-two cents
($3,521,82:2.92). The statement hereto annexed, en
titled "Exhibit of Expenditure,"will showthe ships
repaired, and the monthly expenditure of the de
partment.
TIIE PRESENT FORCE' AND ITS EMPLOYMENT ON THE
VARIOUS STATIONS.
The North-Atlantic Squadron now consists of the
Pcwhatan, Tuscarora, Severn, Albany, Nantaskot,
Nipsic, Seminole, Sy/uteri', and the tugs Speedwell
and Standinin together with two heavy iron -clads,
the Saugus and Dictator; twelve (12) vessels, in
chiding tugs, and mounting in all seventy-six (76)
guns. It is commanded by Rear-Admiral Charles
H. Poor, who relieved Roar-Admiral Hoff on the
15th day of September last.
For the reasons liereinbefore referred to, the de-;
partment was not able; at first, to show the force in
the West Indian waters which the protection of our
interests there seemed to demand. Some outrages
on American citizens by the Spanish authorities of
the island were reported, in consequence of which
Rear-Admiral Hoff, then in command, was directed
to proceed to Santiago de Cuba to investigate the
Matter and take measures for the. bettor protection
of American citizens' and interests. He executed
thisfiuty with promptness and discretion; Ilia re'.
ports have been made the basis of negotiation for"
redress; and since this timely show of power no
further aggressions arc reported. The present
commander of the North Atlantic squadron
has been directed, While preserving . strict
neutrality between the contending powers
in Cuba to , permit no injustice to citizens
of the United States, to prevent interference with
our commerce, and at once to repel and punish any
disrespect or violation of our flag. Owing to the '
prevalence of the yellow fever our vessels have been
necessarily kept outside the principal port of Cuba,
but they rendezvous at Key West, whence they can
communicate by telegraph both with Havana and
the Navy Department. Some of the vessels of this
squadron have also been cruising among the West
India .Islands, more particularly in the waters of
Hayti and San Domingo. At Aspinwall a , vessel
has been constantly kept to look atter the persons
and property of our citizens at that point and on the
isthmus.
The South Atlantic Squadron now consists of the
Lancaster, (flag-ship,),-Quinnebaug, Wasp, and
Portsmouth, four vessels mounting forty-three (43)
-guns, and under the command of Rear-Admiral
Joseph Lawman. It Is highly important that this
fleet should be increased. as there Isnot at this time
on that station sufficient force to guard our citizens
and commerce on the coast of Brazil. and in the
regions of the La Plata.
The Pacific Fleet, under command of Rear-
Admiral Turner, with Commodore William
Rodgers Taylor, and Commodore P. McDougal, •
commanding the respective squadrous,consists now
of fourteen (14) , vessels, the Kearsarge, Lack
awanna,
tO.ssipee, Mohican, Resaca, Cyan();
Jamestown, Saginaw,' Dacotah, Saranac, Nyack, ,
°aware, and the Guerriere, (refitting,)' with the
Pensacola as flag-ship, mounting in all ono hun
dred
' , •
and„twenty-nine (129) guns. Of these, the tea
(10) last named have been or are being thoroughly
repaired and altered in the manner hereinbefore
mentioned, and the fleet, though ;smaller in
number, Is already much more effective for , the ' • •
duties of that station. A ship of war has been
stationed on the coast of Alaska since that country
was ceded to us; and the sloop of war Cyane with
a properly equipped steam launch, has also been..:.
sent
sent there as additional force during the coming
winter.
The European Squadron, under command or
Rear-Admiral Radford, has bean reinforced by the • y•-!kii•
Juniata and Supply, and the Sabine has been ,
attached:to it for, the present; it consists now of
these vessels, with the Richmond and Plymontit „
and the Franklin as flag-ship—six. (0) vestailit,
mounting one hundred'and aix (100) guns.
The Asiatic Squadron consists of the Piscataquel
(flag-ship), Oneida, Alonocaov, Iroquois, AshtteleiA
Lin ad ilia, and Maumee'; and the Benicia, Colorado,'
and Alaska are also fitting otit for that station
making in all ten (10) ships, mounting seventy-two
(72) guns. It is commanded by Rear-Admiral -• • •
Stephen C. Rowan. I regret to say that three (3),\
of these ships have been condemned as entirely utt
seaworthy.
INCREASE, OF 0171: FORCE ON FOREIGN 81`48.TIORE.
Such is the condition and employment of our •
navy at tile present time, differing from.what it was
at the commencement of this administration; only • ,
in the advailee of the ships and material on hand.
Cantbated on thelightli Page.
.cY, ~ ~~ f~~da.