elate rebel eipitol is a matter easily accomplished. A very few trunks would be sufficient fe *es `which contain the di : . s • ievi dence of the crimes ant Pan .• of the conspirators. Wt. believe it was Mason who said liedrould lihrrY the whole State deparebent Di his bereches pocket -21=,, ii . g .— see-ske Ssitair sod -House of iliVeti;l• , e . ~ . , q• In the midst of unprecedented political to' have cause of great gratitude i to "Goa for unusual good health and most abandantt 'harvests...Yen will not be sox- I pitied to-lean:idiot lathe pecirliar exigen- I 'ties of the times our intercourse with for- Air nations has been - attended* with pro- foil& solicitude,:chiedy turning upon our own domestic affairs. A disloyal portion o.the. ,American people have, during the ra s e year, been engaged in an attempt to rede A g a destroy the Union. A nation *Ma endures factious domestic divisions iritaposed to disrespect abroad, and one party, if riot hoth, is sure sooner or later lin - ihareke foreign intervention. Nations time tempted ~n) interfere are not always Ole to resist the counsels of seeming expe -409' and ungenerous ambition, although Measures adopted under such influences seldom fail to be unfortunateand injurious to those adopting them. The disloyal citizens of the United States who have 'offered the ruin of our toiletry in return for the aid. and comfort which they have invoked abroad, have re *yeti)ese patronage and encouragement pan they probably expected. Hit were Net 'to .suppose, as the insurgents have .aeitaned to assume, that foreign nations, in this owe, discarding all moral, social and treaty obligations, would act solely. and aelfishly.for the most speedy restoration of peminerce, including especially the acqui, Ntion of cotton, those nations appear, as La, not to have seen their way to their •Aject more directly or clearly through the destruction than through the preser ' ration of the Union. - 'Uwe could dare to believe that foreign : nations are actuated by no higher princi '"koles than this, I am quite sure a sound ar gpment could be made to show them that .010 ; could reach their aim more readily '.slid :easily by aiding to crush this rebel bn than by giving encouragement to it. The principal lever relied on by the in :llirtgents for exciting foreign nations to ibtistility against us, as already intimated, the embarrassment of commerce. They ean..scarcely have failed to perceive that tbecffort for disunion produces the exist me, difficulty, and that one strong nation promises more durable peace and a more extensive, valuable and reliable com merce than can the same nation broken into fragments. eser.intereentse with Foreign Powers. '.lt is not my purpose to review our die 'cussions with foreign powers, because .:whatever might be their wishes or disposi °dons, the integrity of our country, and the stability of our Government, mainly de pend, not upon them, but on the loyalty, ; virtue / patriotism and intelligence of the American people. The correspondence itseif, with the usual reservations, is here with submitted. I venture to hope that it will appear that we have practiced pru +rice and liberality towards foreign pow ers, averting causes of irritation, and with firmness maintaining our own rights and honor. Since, however, it is appo int:it ,that here, as in every other State, femieTi dangers necessarily attend domes *. Acuities, I recommend that adequate std ample measures be adopted for main wining the public dbfences on every side. 'While under this general recommenda 'tirrh; provision for defending our sea coast line already occurs to the mind, I a in tiresome connection, ask the atten of Congress to our great lakes and rivers. It. is believed thaw some fortifications and depots of arms and munitions, with liar , bor and navigation improvements, all at well selected •points upon these, would he .of great importance to the national de fineetind preservation. liallroad Connection with Loyal States. I ask attention to the views of the Sec , ritary of War expressed in his report upon 'the same subject. I deem it of importance that the loyal regions of East Tennessee and Western North Carolina should be connected with Kentucky and other faith ' ful parts of the Union by railroad. I 'therefore recommend, as a military mess 'rife; that Congress provide efor the con tirnetion of such a road as speedily as pciasible; Kentucky, no doubt, will co oPeraie, and through her legislature make the most judicious selection of a line.— 'The nesthern terminus must connect with son.e existing railroad, and whether the •rbuteshall be from Lexington or Mello- Taiiiille to the Curnherland Gap. or from 'Lebanon to the Tennessee line, in the di rection of Knoxville, or on some still dif ferent. line, can easily be determined.— If.tentucky and the general government coop erating, the work can be completed in a very short time, and when done it will be not only of vast present usefulness. but also a 'valuable permanent improvement, worth ifs cost in all the temporary future. ' POreign Commercial Treaty, lac. Some treaties, designed chiefly for the interest of commerce, and having no grave political importance, have been negotia !tixii, • and will be submitted to the Senate 'for their consideration. Although we have 'filled to induce some of the commercial Alvan to adopt desirable melioration of the rigor of maratime war, we have re ;Moved all obstructions from the way of thin humane reform, except such as are 'merely of an accidental occurrence. I in voke yourattention to the correspondence between Her Britanic Majesty's Minister, accredited to this Government, and the Secretary of State, relative .to the deten 'OM" of the British ship Perthshire, in donne list, by the 'United States steamer itinteachusetts, for a supposed breach of the blockade. As this detention was oc taiiioned by on obvious misapprehension of 'the facts, and as justice requires that we iiritild commit tip belligerent act not. found s . 9 i n *trio right, as auctioned by public L. ii I recommend that an appropriation ber i titidi to satisfy the reasonable demand Oflitte pwors of the vessel for her deten- CM' ' 'Aimiettesai Ciabou Against Chins. 4, repeat the recommendation of my pre decessor in his annual message to Con y ftte in December last., in regard to the . , siti of the surplus which will prob- i a I :0 rei . , , on , nain after satisfying the claims of! 'American citizens against China, pursu- ' Ono the awards of the commissioners, der the act of the 3d of March, 1850. K *mover, it should not be deemed advis itoito, parry . that recommendation into. VW. I ffrikail suggest that authority be Ofret for investhig the principal over the ptheieda of the surplus referred to, in good :ties; with a"iler to the satisfaction drikeiti,ether hit claims of our citizens allialnit- Chi,* to are not unlikelf to arise tillemifter in =the Bourse of our selanene cage with that tapirs.. icsaill , !irP of Firirifeors• - 13 I LiStie . Act pf_ t.he Otik, of. August lath, .' . Fre , athorisgd.* peilident to i,r,h• 8 0 et Alj • f,p .. . . an N of myt4bla vessels 1in4.tc; 44 ,9 ; f l ie6met . : ' . • .:". hiffleatil 'Stift& issi . Freud in a. single instance only. . For the more effectual protection of our extensive commerce, in the Eastern seas especially, B r vica ' seem s me thstit wouid alio beAdvis ' . ' to. thesmitarollas of - sail- : . n_ ' e re-capture a es wiaioll , 4 pi s pay "sake of lErni tes vefoiel s an . thee cars ons, a the insular Courts fish[ established by..dtw itegastern..aoun- tries to 'adjudicate de cased in event that this should not be objected to by the local arithorities. Hayti and Liberia. Menage. If any good reasons - exist why we should persevere longer in withholding our re- , omultion of the independence and sovev elgaty pf Hayti and Libeiliai: I am unablei to disfern bbwever, to in augurate a novel policy in regard to them without the approbation "of Congress. I submit, for your consideration, the expe 'eney of an appropriation for maintain ing a Charge d'Affaires near each of those new. States- It does not admit of doubt that important commercial advantages might be secured by favorable treaties with them. Operations of the Treasury. The operations of the Treasury during the period which has elapsed since your adjournment have been conducted with signal success. The patriotism of the peo ple has placed at the disposal of the Gov ernment the large means demanded by the public exigencies. Much of the National Loan has,been taken by citizens of the in dustrial classes, whose confidence in their country's faith, and zeal for their coun try's deliverance from present peril, have induced them to contribute to the support of the Government the whole of their limited acquisitions. This fact imposes peculiar obligations IR economy in dis bursement and energy in action. The revenue from all sources for the financial year ending on the 30th of June; 1861, was eighty-six millions eight hun dred and thirty-five thousand nine hun dred dollars and twenty-seven cents, and the expenditures for the same period, in cluding-payments on account of the public debt, were eighty-four million five hun dred and seventy-eight thousand eight hundred and thirty-four dollars and forty seven cents, leaving a balance in the treasury on the Ist ofJuly, of two million two hundred and fifty-seven thousand and sixty-five dollars and eighty cents. For the first quarter of the financial year, end ing on the 30th of. September. 1861, the receipts from all sources, including the balance of Ist of July, were one hundred and two million five hundred and nine dol lars and twenty-seven cents, and the ex penses ninety-eight millions two hundred and thirty-nine thousand seven hundred and thirty-three dollars and nine cents, leaving a balance on the Ist of October, 1861, of four million two hundred and ninety-two thousand seven hundred and seventy-six dollars and eighteen cents. Estimates for the remaining three quar ters of the year, and for the financial year 1862, together with the ways and means for meeting the demands contemplated by them, will be submitted to Congress by the Secretary of the Treasury. It is gratify ing to know that the expenditures made necessary by the rebellion are not beyond the resources of the loyal people, and to believe that the same patriotism which has thus far sustained the government will continue to sustain it till peace and union shall again bless the land. Strength and Efficiency of the Army I respectfully refer to the report of the Secretary of War for information respect ing the numerical strength of the army, and for recommendations having in view an increase of its efficiency and the well being of . the various branches of the ser vice entrusted to his care. It is gratifying to know that the patriotism of the people has proved equal to the occasion, and that the number of troops tendered greatly ex ceeded the force which Congress authoriz ed me to call into the field. I refer with pleasure to those portionsdpf his report ♦hich make allusion to the creditable de gree of discipline already attained by our troops. and to the excellent sanitary con dition of the entire army. The recom mendation of the Secretary for an organi zation of the militia upon a uniform basis is a subject of vital importance to the fu ture safety of the country, and is com mended to the serious attention of Con aress• The large addition to the regular army, in connection with the defection that has so considerably diminished the number of its officers, gives peculiar importance to his recommendation for increasing the corps of cadets to the greater capacity of the military academy. By mere omission, I presume, Congress has failed to provide chaplains for hospitals occupied by volun teers. This subject was brought to my notice, and 1 was induced to draw up the form of a letter, one copy of which, prop erly addressed, has been delivered to each of the persons, and at the dates respect tively named, and stated in a schedule con taining also the form of the letter, marked A, and herewith transmitted. These gen tlemen, I understand, entered upon the duties designated at the times respectively stated in the schedule, and have labored faithfully therein ever since, and therefore recommend that they be compensated at the same rate as chaplains in the army, and further suggest that general provision be made for chaplains to serve at hospi tals as well as with regiments. The report of the Secretary of the Navy 'esents in detail the operations of that ranch of the service, the activity and en ergy which have characterized its admin istration, and the results of measures to increase its efficiency and power. Such have been the additions, by construction and purchase, that it may almost he said a navy has been created and brought into service since our difficulties commenced.— Besides blockading our extensive coast, squadrons larger than ever before assem bled under our flag have been put afloat, and performed deeds which have increased our naval renown. I would invite special attention to the recommendation of the Secretary for a more perfect organization of the tiavy, by, introducing additional arades in the service. The present organ ization is defective andansatisfactory, and the suggestions subm7ltPd by the de partment will, it is believed, if adopted, obviate the difficulties alluded to, promote harmony and increase the efficiency of the navy. V&CSIIICieS on the Supreme Bench There are three vacancies on the bench of the Supreme Court, two by the de cease of Justices Daniel and McLean, and one by the resignation of Justice Camp bell. I have so far forborne making nominations to fill these vacancies for reasons which I will now state. Two of the outgoing Judges resided within the States now overrun by revolt, so that if successors were appointed in the same lo calities they could not now serve upon their circuits, and many of the most com petent then there probably would not take the personal hazard of accepting to, serve even here upon the Supreme Bench. I have • been unwilling to throw all the ap pointments Northward, thus disabling myself fr*Orn doing justice to the South on the return- of peace, although I may re- Mark;. that to tianereri to the Nosh- one *hi* 404 ,heretObre, been in the 'Slim* With ,rorems to territiory and Also lorig land 3 %.llliiint juairatif' ettreer ott Tine McLean, him circuit grew into an empire, Chaplains for the Army Organization of the Navy although . Judge to give the iii re than a nom att rice 1,. in population litiratone lio r d and seven ty an - 7 g. in 1830 to six millibar one husked fifty-one thou sand :four handrol and five in 1860. Bc sidee.this, the country generally has Out groWn our present judiciary. If uniformity were at all intended, the system requires that all.the States shall be accommodated with Circuit Courts, at tended by Supreme Judges, while, in fact, Wisconsin, Minnesota, lowa, Kansas, Florida, Texas, California and Oregon, have never had any such Courts. Nor can this well be remedied without a change of the system, because the adding of Judges to the Supreme Courts, enough for the accommodation of all parts of the country with Circuit Courts, would create a Court altogether too numerous for a judicial body of any sort, and the evil of it be one which will increase as new States come into the Union. Circuit Courts, too, are useful, or they are not useful. If use ful, no States should be denied them. If not useful, no State should have them.— Let them be provided for all, or abolished as to all. Modification Suggested Three modifications occur to me, either of which I think would he an improve ment upon our present system. Let the supreme Court be of convenient number in every event; then, first, let the whole country be divided into circuits of conve nient size, the Supreme Judge to serve in a number of them corresponding to their own number, and independent Circuit Judges be provided for all the rest; or, secondly, let the Supreme Judges be re lieved from the Circuit duties, and Cir cuit Judges provided for all the Circuits; or, thirdly, dispense with Circuit Courts altogether, leaving the judical function wholly to the District Courts and an inde pendent SupreMe Court. Revision of the Statute Laws. I respectfully recommend to the consid eration of Congress the present condition of the statute laws, with the hope that Congress will be able to find an early rem edy for many of the inconveniences and evils which constantly embarrass those engaged in the practical administration of them. Since the organization of the gov ernment, Congress has enacted some five thousand acts and joint resolutions, which fill more than six thousand closely printed pages, and are scattered through many volumes. Many of these acts have been drawn up without sufficient caution, so that their provisions are often obscure in themselves or in conflict with each other, or at least so doubtful as to render it very difficult for even the best informed person to ascertain precisely what the statute law really is. It seems to me very important that the statute la'vs should be made as plain and intelligible as possible, and be reduced to as small a compass as consistent with the fullness and precision of the will of the Legislature, and the perspicuity of its lan guage. This, well done, would, 1 think, greatly facilitate the labors of those whose duty it is to assist in the administration of the laws, would be a lasting benefit to the people, by placing before them, in a more accessible and intelligible timn, the laws which so deeply concern their inter est and their duties. I am informed by some, whose opinions I respect, that ail the acts of Congress now in force, and of a permanent and general nature, might be revised and re-written, so as to be em braced in one volume, or at most two vol umes of ordinary and convenient size, and I respectfully recommend to Congress to consider the subject, and if my suggestion be approved, to devise such plan as to their wisdom shall seem most proper for the attainment of the end proposed. Summary Laws iu the Rebel States One of the unavoidable consequences of the present insurrection is the entire sup pression in many places of all ordinary 'heaps of administering civil justice by the officers, and in the forms of existing law. This is the case, in whole or in part, in all the insurgent States, and as our armies advance upon and take possession of parts of those States, the practical evil becomes more apparent. There are no courts nor officers to whom the citizens of other States may apply for the enforce ment of their claims against citizens of the insurgent States, and there is a vast amount of debt constituting such claims; some have estimated it as high as two hundred million dollars, due in a large part from insurgents in open rebellion to loyal citizens, who are even now making great sacrifice in the discharge of their patriotic duty to support the .mveiliment. Under these circumstances c l liive been urgently solicted to establish, by military power, courts to administer summary jus tice in such cases. I have thus far declin ed to do it, not because I had any doubt that the end proposed—the collection of debts—was just and right in itself; but I have been unwilling to go beyond the pres sure of necessity in the unusual exercise of powers; but the powers of Congress, I suppose, are equal to the anomalous occa sion, and, therefore, I refer the whole matter to Congress, with the hope that a plan may be devised for the administra tion of justice in all such parts of he in surgent States and Territories as !Ray be under the control of this Government, whether by a voluntary return to alle giance and order, or by the power of arms. This, however, not to be a perma nent institution, but a temporary substi tute, and to cease as soon as the ordinary courts can be established in peace. Claims Against the Government It is important that some more conve nient means should be provided, if possi ble, for the adjustment of claims against the Government, especially in view of the increased number by reason of the war.— It is as much the duty of Government to render prompt justice against itself in fa vor of citizens, as it is to administer the same between private individuals. The investigation and adjudication of claims in their nature belong to the judicial de partment; besides it is apparent that the attention of Congress will be more than usually engaged for some time to come with great national questions. It was in tended by the organization of the Court of Claims mainly to remove this branch of business from the halls of Congtess, but while the Court has proved to be an ef fective and valuable means of investiga tion, it, in a great degree, fails to effect the object. of its creation, for want of power to make its judgments final. Fully aware of the delicacy,. not to say the danger of the subject, I commend to your careful consideration whether this power of mak ing judgments final may not properly be given to the Court, reserving the right of appeal on questions of law to the Supreme Court, with such other provisions as ex perience may have shown to be necessary, Operations of the Postal Department. 1 ask attention to the reliart of the Postmaster General, the Tollow ing being a summary of the statc ment of the condition of the Depart ment : The revenue from all sour ces during the fiscal year ending June 30, 1861, including the annual perinauent appropriation of $700,000 'PF'the trahsportittiM! of :free • mei' ater, wasp 10,040,2A,40, bie it* alMet- two: per • eentittitit timinthe rev- , enne of 1860. In tWasine time the CM= expenditiires Were $13;609,759 11; showing a decrease of snore than eight per cent. as . :cnpared With thoilliof the previous year, and leav ing #lu excess of expendittires over the avenue for the last fiscal year of $4,587,462 71. The gross revenue for the year ending June 30th, 1862, is estimated at an increase of four per cent. on that of 1861, making six million six hundred and eighty-three thou Sand dollars, to whichloshould be added the earning of the department in carry ing free matter, vie : seven hundred thousand dollars, making nine mil lion three hundred and eighty-three thousand dollars. The total expen ditures for 1862 are estimated at twelve million five hundred and twenty-eight thousand dollars, leav ing an estimated deficiency of three million one hundred and forty-five thousand dollars to be supplied from the Treasury, in addition to the per manent appropriation. District of Columbia Boundaries. The present insurrection shows, I think, that the extension of this District across the Potomac river at the time of establishing the Capitol here, was eminently wise, and conse quently that the relinquishment of that portion of it which lies within the State of Virginia was unwise and dangerous. I submit for your consid eration the expediency of acquiring that part of the District, and the res toration of the original boundaries thereof, through negotiations with the State of Virginia. Operations of the Interior Department. The report of the Secretary of the Interior, with the accompanying doc uments, exhibits the condition of the several branches of the public busi ness pertaining to the department.— The depressing influences of the in surrection have I .)een especially felt in the operations of the Patent and General Land Offices. The cash re ceipts from the sale of public lands during the past year have exceeded the expenses of our land system only about two hundred thousand dollars. The sales have been entirely suspend ed in the Southern States, while the interruptions to the business of the country, and the diversion of large numbers of men from labor to mili tary service have obstructed settle ments in the new States and Territo ries of the Northwest. The receipts of the Patent Office have (iceline(l ill nine months about $lOO.OOO, rendering a large redaction of the three employed necessary to make it self-sustaining. The demand upon the Pension Office will be large ly increased by the insurrection.— Numerous applicatious for pensions, based upon the casualities of the ex isting war, have already been made. There is reason to believe that many who are now upon the pension rolls, and in receipt of the bounty of the Government, are in the ranks of the insurgent army, or giving them aid and comfort. The Secretary of the Interior has directed a suspension of the payment of the pensions of such persons upon proof of their disloyalty. I recom mend that Congress authorize that officer to cause the names if such persons to be stricken from the pen sion rolls. The relations of the gov ernment with thb Indian tribes have been greatly disturbed by the inSur rection, especially in the Southern superintendency, and in that of New Mexico. The Indian• country south of Kansas is in the possession of in surgents from Texas and Arkansas, and the Agents of the United States, appointed since the 4th of March fin• this superintendency, have been una ble to reach their posts, while the most of those who were in office be tbre that time have espoused the in surrectionary cause, and assume to exercise the powers of agents,,by vir tue of commissions from the insur rectionists. It has been stated in the public press that a portion of these Indians have been 'organized as a military force, and arc attached to s the army of the insurgents. Although the government has no official informa tion upon this subject, letters have been written to the Commissioner of Indiati , Affairs, by several prwninent chiefs, giving assurance of their loy alty to the United States, and ex pressing a wish for the presence of Federal troops to protect them. It is believed that upon the repossession of the country by the Federal forces, the Indians will readily cease all hostile demonstrations and resume their former relations to the govern ment. AnEgrieultural Bureau. Agriculture, confessedly the larg est interest of the nation, has not a department, nor a bure*i, but a clerk ship assigned to it in the Govern ment. While it is fortunate that this great interest is so independent in its nature as to not have demanded and extorted more from the Govern- ment, I respectfully ask Congress to consider whether something more cannot be given voluntarily with gen eral advantage. Annual reports, ex hibiting the condition of our agricul ture, commerce and manufactures, would present a fund of information of great practical value to the coun try. While I make no suggestion as to details. I venture the opinion that an agricultural and statistical bureau might profitably be organized. The African Slave Trade. The execution of the laws for the suppression of the African slave trade has been confined to the De partment of the Interior. It is a subject of gratulation that the efforts which have been made for the sup : preintion of this inhuman traffic have been recently attended with unusual success. / f ive vessels being fitted out for the slave trade have been ! seized and condemned. Two mates ! of vessels Allowed in the trade and one person in equipping a vessel as a slaver have been' convicted and sub jected to the, ,penaity of fine and impsiortmon, 1 4 16 sitptain taken I with a cargo of 4 fricAtns on board his . vassal . 114 K, _bean convicted of tho highest-grade of offenceunder our laws, the punishment Of which is death. Ortititisatioss of New Territories. The Territories of Colorado, Da kotah and Nevada, created by the last Congres s have been or,ganited and civil administration has been in augurated therein, under auspices es pecially gratifying, when it is consid eud that the leaven of treason was found existing in some of these new countries when the Federal officers arrived there. The abUndant natu ral resources of these Territories, with the security and protection af forded by organized government, will doubtless invite to them a large im migration, when 'peace shall restore the business of the country to its ac customed channels. Legislation In District of Columbia. I submit the resolutions of the Legislature of Colorado, which evi dence the patriotic spirit of the peo ple of the Territory. So far, the au thority of the United States has been upheld in all the Territories, as it is hoped it will be in future. I com mend their interests and defence to the enlightened and generous care of Congress. I recommend to the fa vorable consideration of Congress, the interests of the District of Col umbia. The insurrection has been the cause of much suffering and sac rifice to its inhabitants, and as they have no representative in Congress, that body should not overlook their just claims upon the Government.— At your late session a joint resolution was adopted, authorizing the Presi dent to take measures tbr facilating a proper representation of the indus trial interests of the United States at the exhibition of the industry of all nations, to he holden at London in the year 186. I regret to say I have been unable to give personal at tention to this subject—a subject at once so interesting in itself and so extensively and intimately connect ed with the material prosperity of the world. Through the Secretaries of State and of the Interior, a plan or system has been devised and part ly mataredk and which will be laid before you. Confiscation of Rebel Slave Property Under, and by virtue of the Act of Congress entitled "An act to con fiscate property used for insurrec tionary purposes"—approved August 6th, 1 8 i,11, the legal claims of certain persons to the labor and service of certain other persons have become forfeited, and numbers of the latter, thus liberated, are already dependent on the United States, and must be provided fbr in some way. Besides this, it is not impossible that some of the States will pass sim ilar enactments fbr their own bene fits respectively, and by operation of which persons of the same class will be thrown upon them for dispo sal. In such case I recommend that Congress provide for accepting such persons, from such States, according to some mode of valuation in lieu, protium, of direct taxes, or upon some other plan to be agreed on with such States respectively, that such persons on such acceptance by the General Government, be at once de clared free; and that in any event, steps be taken for colonizing both classes, or the one first mentioned, if the other shall not be brought in to existence, at some place or places in a climate congenial to them. It might be well to consider, too, wheth er the free colored people already in the United States, could not, so fir as individuals may desire, be included in such colonization. To carry out the plan of colonization may involve the acquiring of territory, and also the appropriation of money beyond that to be expended in the territorial acquisition. The Acquisition of Territory Having practised the acquisition of territory fin• nearly sixty years, the question of constitutional power to do so is no longer an open one.— With us the power was questioned at first by Mr. Jefferson, who, however, ''n the purchase of Louisiana, yielded his scruples on the plea of great ex pediency. If it be said that the only legitimate object of acquiring terri tory is to furnish homes for white men, this measure effects that object, for the emigration of colored men leaves additional room for white men remaining or coming here. Mr. Jef ferson, however, placed -the import ance of procuring Louisiana more, on political and commercial grounds than procuring room for population. On the whole proposition, inclu ding the appropriation of money with the acquisition of territory, does not the expediency amount to absolute necessity, that without which the Government itself cannot be perpetuated ? The war continues. In considering the policy to be adopted for suppressing the insurrec tion, I have been anxious and careful that the inevitable conflict for the purpose shall not degenerate into a vi olent and remorseless revolutionary struggle. I have, therefore, in every case, thought proper to keep the in tegrity of the Union prominent as the primary object of the contest on our part, leaving all questions which are not of vital military importance to the more deliberate action of the Legislature. Adherence to the Blockade In the exercise of my best discre tion I have adhered to the blockade of the ports held by the insurgents, instead of putting in force by procla mation the law of Congress, enacted at the last session, for closing those ports. So also, obeying the dictates of prudence, as well as the obliga tions of laws, instead of transcend ing, I have adhered to the act of Con gress to confiscate_property- used for insurrectionary pufposes. If a new law upon the same subject shall be proposed, its propriety will be duly considered. The Union must be pre served, and himoe all ind*ensible means must be employed, Weshould not be in, haste to det4relinet that radical and extreme memnres, which - A may reach the loyal as well as the disloyal, indispensible. K. Review 44the Rebellion Since April •. . • 14th. insolgural address at the be ginning eit the Administration, and the message to Congress at the late special session, were both mainly de voted to the domestic controversy out of which the insurrection aid consequent war sprung . ._ Noth ing now occurs to add to or subtract from the, principles or general pur poses stated and expressed in those documents. The last ray ofhope, for preserving the Union peaceably, ex pired with the assault upon Fort Sumter, and a general review of what has occurred since may not be unprofitable. What was painfully uncertain then is much better defin ed and more distinct, and the pro gress of events is plainly in the right 'direction. The insurgents claimed a strong support from north of Mason and Dixon's line, aid the friends of the Union were not free from apprehen sion on that point. This, however, was not settled definitely ; and on the right side, south of the line, noble little Deleware led oft' right from the first; Maryland was made to seem against the Union, and our soldiers were assailed, bridges were burned, and railfoads were torn up within her* limits, and we were many days at one time without the ability to bring a single regiment over her soil to the Capital. Now. her bridges and rail roads are prepared, and open. to the Government. She already gives seven regiments to the cause of the Union. and none to the enemy; and her people. at a regular election, have sustained the cause of the Union by a larger majority and a larger aggregate vote than they ever bethre gave to any candidate on any question. Kentucky, too, for sonic time in doubt, is now decidedly. and, I think, unchangably ranged on the side of the Union. Missouri is comparative ly quiet, and, I believe, cannot again be overrun by the insurrectionists.— These three States, Maryland, Ken tucky and Missouri, neither of whom would promise a single soldier at first, have now an aggregate of not less than forty thousand men in the field for the Union, while Of their 'citisens certainly not more than a third of that number, and they of doubtful wherabouts and doubtful existence, are in arms against it. The 'Union Canso Advancing South- weird. After a somewhat likody struggle of months, winter closes on the Union people of Western Virginia, leaving them masters of their own country. An insurgent force, of about one thousand five hundred, for months dominating the narrow peninsular region constituting the counties of .Accomac and Northampton, and known as the eastern shore of ,n m Vir toaether with some conti,p- • ous parts of Maryland,. have Mid down their arms, and the people there have renewed their allegiance and accepted the protection of the old flag. This leaves - no armed in surrectionists north of the Potomac, nor east of the Chesapeake. Also, we have obtained a footing at each of the isolated points on the South ern coast of Hatteras. Port Royal, Tybee Island, near Savannah, and Ship Island, and we likewise have sonic general accounts of popular movements in behalf of the Union in North Carolina and Tennessee.— These things demonstrate that the cause of the Union is advancing steadily southward. Retirement of Lieut. Gen. Scott Since your last adjournment, Lieut. General Scott has retired from the head of the army. During his long life the nation has not been un mindful of his merit, yet, on calling to mind how faithfully- and brilliant ly he has served the country from a time far back in our history, when few of the now living had been born and thenceforward continually, I cannot but think Ate are still his debtors. I submit, therefore, for your consideration, what further mark of recognition is due to him and to ourselves as a grateful people. With the retirement of General Scott came the Executive duty of appoint ing in his steada General-in-Chief of the army. It is a fortunate circum stance that neither in council Or country was there, so flu- as known, any difference of opinion as to the proper person to be selected. Appointment of Gen, McClellan The retiring chief repeatedly ex pressed his judgment in favor of General McClellan for the position, and in this the nation seemed to give a unanimous concurrence. The des ignation of General McClellan is, therefore, in a considerable degree, the selection of the country, as well as of the Executive, and hence there is better reason to hope there will be given him confidence and cordial support thus by fair implication promised, and without which he can not with so full efficiency serve the country. It has been said that one bad General is better than two good ones, and the saying is true if taken to mean no more than that an army is better directed by a single mind, though inferior, than by two su perior ones at variance and cross pur poses with each other, and the same is true in all joint operations where in those engaged can have none but a common end in view, and can differ only as to the choice of means. Right of Suffkage in the South. In a storm at sea, no one on board can wish the ship to sink, and yet, not unfrequently all go down togeth er, because too many will direct, and no single mind can be allowed to control it. Every day continues to develope that the insurrection is largely, if not exclusively, a war upon the first principle of popular government, the rights of the people. Conclusive evidence of . this is found iu the most grave pod maturely con -4614114 public documents, as well se in the imerel tone othe insurgents. In those (loolimei!te we find tho MrMEIV abridgment of the existing 114 of suffrage and the deniiil to tkie people of all right tg.particip4te in the se= leetfon of puNic, except ; the Legiglature, boldly a d 7Z)catea with labored arguirnitsii to prove that large colltrol of the people in the government is the flource of all polit ical evil. Monarchy itself is some times hinted at and a possible refuge from the power of the people. In the presentposition I could scarcely be justified were I to omit raising a warning voice against this approach of returning despotism. Capital and Labor. It is not needed, nor fitting here f that a general argument should be made in favor of popular institutions; but there is one pointy with its conk 'motion, not so hackneyed at most, others, to which I ask brief attention. It is the effort to place capital on an equal footing with, if not above, la bor, in the structure of government. It is presumed that labor is available only in connection with capital; that nobody labors unless somebody else owning capital, somehow, by the use of it , nalues him to labor. This assumed, it is next considered wheth er it is best that capital shall hire la borers, ands thus induce them to' work by their own consent, or buy them, and drive them to it' without their consent. Having. proceeded' so far; mkt , wally coneTudeg that an labtrters arat either hired laherers, or what We call slaves ; and further, it is as sumed that whoever is once a hired laborer is fixed in that condition for life. Now there is no such relation between capital and labor as assumed, nor is there any such thing as a free man being fixed forlife in the con dition of a hired laborer. Both these assumptions arc false, and all inferences from them arc groundless. Labor is prior to anti independent of capital. Capital is only the fruits of labor, and could never have exist ed if labor had not first existed.— Labor is the superior of capital, and deserves much the higher considera tion. Capital has its riets, which are as worthy' of protection as any other rights; nor is it denied that there is, and probable always will be, a relation between labor and capital producing mutual benefits. The error is in assuming that the whole laboring comthunity exists within that relation. A few men own cap ital and that few would labor them selves, and with their capital hire or. buy another few to labor for them.— A large majority, belon g ing to neither class, neither work for others nor have others working for them. In most of the Southern State§ a majority of the people of all colors are neither slaves nor masters, while in the Northern a large major ity are neither hirers or hired. Men, with their families, wives, sons and daughters, work for themselves on their farms, in their houses and in their shops, taking the whole product to themselves, and asking no favors of capital on the one hand nor , of hired laborers on the other. It is not forgotten that a considerable number of persons mingle their own labor with capital; that is, they la bor with their own hands and also buy or hire others to labor fbr them. but this is only a mixed and not a distinct class. No principle stated is disturbed by the existence of this class. Again, as has already been said, there isnot,. of necessity, any such thing as the free hired laborer being fixed to that condition for life. Many independent. men everywhere in these States, a few years - back in their lives, were hired laborers. The prudent, penni less beginners in the world labor for wages awhile, saves a surplus with which to buy tools or land for him. self, then labors on his own account another while, and at length hires another new beginner to help him. This is the just, and generous and prosperous system, which opens the way to all—gives hope to all, and consequent energy and progress to No men living are more worthy to be trusted than those who toil up from poverty; none less inclined to take or touch. aught which they have not honestly earned. Let them be ware of surrendering a political pow er which they already possess, and which, it' surrendered, will surely be used to close the door of advancement against such as they, and to fix new disabilities and burdens upon them, till all of liberty shall be lost. From the first taking of our National Cen sus to the last are seventy years, and we find our population at the end of the period, eight times as great as it was at the beginning. The increase of those other things which men deem ed desirable has been even greater, We thus have at one view what the popular principle applied to govern ment through the machinery of the States and the Union has produced in a given time, and also what, if firmly maintained, it promises for the future. There are already among us those win), if the Union be pre.. served, will live to see it contain two, hundred and fifty millions. The struggle of to-day is not altogether for to-day—it is for a vast future also. With a reliance on Providence, all the more firm and earnest, let us pro ceed in the great task which °yenta have devolved upon us. ABRAHAM LINCOLN, 'WASHINGTON, Dee. 3, 1861 ES.T ERN CONTRA F.:WM.-41011a F. P. Blair, Chairman of the Comittee of Military Affairs, has arrived in Washington. He reports great dis tress in the West among those who have done service for the public, in consequence of the slow mode of pay ment adopted by the Government.— Contractors are forced to sell their claims at heavy discount, and bank- Iffli.and speculators are grow ing rich out ottitor suffering. Col. Blair will attempt Ilktm4diate legislative row. dy dfc4e6e wogs. Lfl