Truth and Rlght--Gbd and bnr. Country. $2 00 in Advance, per Annan. .VOLUME 17- . BLOOMSBURG. COLUMBIA COUNTY PA., WEDNESDAY, DECEMBER 13. 1865. NUMBER 8. i. U. JACOUr, rcblishur. STAR.OF THE NORTH IS PUBLISHED CVIRY WEDNESDAY BY . JVM. H. JACOBY i Office on Slain St., 3rd Square lei aw Market, TERMS: Two Dollars and Fifty Cents in, advance. If" net paid till the tjnd of the year, Three Dollars will be charged.-; ... . No subscriptions takea for "a period Jess than six months j no discontinuarce permit, ted cnul all. arrearages are paid unless at the option of the editor. RATES OF ADVERTISING : TEN LINES CONSTITUTE A SQUARE. One Square, One or three insertions, SI 5o Every subsequent insertion ,less than 13, 50 Oae column one year, : - . " 50 00 Administrators' and Executors' notice, 3 CO t Transient advertising payab'e in advance, all other doe after the first insertion. PRESIDENT'S - MESSAGE. v- - ,;' - FeUav Citizens cf the Senate and'Ihme of Rep p reitntative t . . v t To express gratitude to God, in the name of the people, for the preservation of the United States, is my first duty in addressing you. Our thoughts next reverUcvthe death of" the' President by an act of parricidal trra son.; The grief of the nation is still fresh ; it finds some solace, in the consideration that be lived la enjoy the highest proof of its confidence by entering on the renewed term ' - nl " t . '. - i i a. a oi luetUGiri .Magistracy io wnicn ne.naa been elected thai he brought the civjl war substantially to a close ; that hit lot was deplored" in all pans of ihe Union, arid that foreign nations have rendered justice to his memory; His removal cast uporr me a hoavier weight of cares.lhan ever devolved oponanyoneof his predecessors. ' ' To fulfill ray trust I need the support and cenfidprtce ot all who are associated with no in the various departments of Govern ment, and the support arid con fids nee of the people. .There is but one way in which" 1 can bope.rlogain their -heceisary aid; it is, tp slate with fraoineas the ; principles which guide my conduct, and ibeir appltea lioa to the. prevent , slate of. affairs, - well aware that the efficiency of my labor will, in a great measure, depend on, your and their undivided approbation1 i-Tba Union of the United States of Amer tea was intended by tis authors' to last " as long as the Sta-ee themselves 'shall Jaat. 'The tUulan shall "be perpetual1 are the words of the Confederation. '"To form's' more' perfect Uoion," by ati'erJioaiice" of the people of the United States, i ihe de dared" l purpose "of ihe , Constitution. - The band of Divine Providence was never more plainly vi.ible io the affairs of men than in the. framing and ihe adopting of that instru ment. It is, beyond comparison, the great est event in American hisory ; and indeed is it not, of all events in modern times, the most pregnant with consequence for every part of the earth ? - The member oMhe convention .which prepsredx it brought to iheir work the ex perience of the conlederatien, of their sev eral ;tes, "and W o'tner repcblicaii govern, menu, old and new j-btrufcey needed and obtained a wisdom superior to experience. And when for its validity ii required the ap- f. ui vvid iuui - vLvu.oui js largo part ef a continent, and acted' separately jn re any -J imrcT co ate hfio"ii sTT 'wLTai uTs" m o re" wonderful than" thai, afte ' long .contention and earnest discussion, all feelings and all opinions were ultimatefy'drawn in one way ta its srfpporr. - - - The Constitution to "which life was thus imparted contain, within itself ample, re sources forits own preservation. It has power to enforce the laws, punish treason, and mica domestic tranquility. In case ef usurpation ol the government of a State by ene man. or an oligarchy, it become a duty ef the Unite f States to make good the guarantee to thaj State of a republican form ; of government, and so to maintain the ho rnogeneousness of all. Does the lapse of time reveal delects I A simple mode ot amendment is provided in the Constitution itself, so that its conditions can always be made to conEprrn to the requirements of ad vancing civilization. No room 's allowed even for the thought of a possibility of its coming to an end. And these powers of self-preservation have always been asserted in their complete in tegrity, by every patriotic Chief Msgis'r.te by Washington and Madison. The parting advice of the father of bis Country, while yet Presfdeat,lo the people of the United Mites, was tba: 'ihe free Constiiuiion,J .ubu " a.m mi "ui ui inoir uauu, UllIll be sacredly maintained, " and the inaugural word of President Jeffez.ion ,'held up "the ; preservation of the General Government, in its constitutional vigor, as the sheet anchor of oar peace at home and. safety abroad." The Constiturions the work of f the people cf the United States," and it should be as indestructible as the people. - - It is not strange Chat the framers of the Constitution, which had no model in the past, should not have futly comprehended the excelledce of their own work. Fresh Irora a struggle against arbitrary power, many patriots sunered irom harrassing fears of an absorbtion. ol the State government by the General government. ' The subjects hat come unquestionably within its juris diction are so nnmeroos, that i: must ever jiaturally refuse to be embarrassed by ques tions that lie beyond it. . . ,i ; Were it otherwise, the Executive would . afnk beneath 1 the .tardea: 'the channels of justice' would be would be obstructed choked ; legislation. br. excess : no . that thdre i. a. greater temptation to exercise some of .the functions of the General gov ernment through the States than to. trespass on ;heie rightful sphere. "The absolute ac quiescence io the decisions of the majority" was, atiLe beginning of the century, n forced by Jefferson "as the vital principle of republics," and the events of the last fear jrs have established, we will hope fover, that there lies no appeal to farce. -'The raarntenaoce of the Union brings w tiitthe support of "the Sta'e govern trisnta in all their rights ;V bat it is r ot one ot tfse-rights of any State government to re nounce its own place in the Union, or to uulifytte laws of the Unio"a. The largest tiStr.J i to be maintained in the discus- i eien of the acta of the Federal government ; bet there is no appeal from its laws, except to th? various branches of ibat go?ernaient itjs.'f, cr. to the people, who grant to the rr.ffmbers of the Legislative and of the Ex ecs'; ve departments no tenure bat a limited cn, a-ri ia that raanner always retain the "The ?v?r'-;nty of the Sutes" is the cf cl Confsdsrasy, and not the Isa -u s - censt'r-- The Utter TH "The Con- which shall be made in. pursoance thereof, of the ports invites the restoration, of indus and all treaties made, or which, shall be try and cbmmerce; the post office renews made .under Ihe authority of the United the facilities of social intercourse and of States, shall be the supreme law of the land, j business. and ihe judges in every State shall be bound I And is it not happy for us all, that the le tberebv'. anvthins ia the Constitution or , storation ,of each one of these functions of faws of any "State to the contrary notwith standing." V - . . r Certainly, the' government of the United States is a" limited government ; and so is every State 'government a limited govern ment. ". With uir Ibis idea of limitation spreads through every form of administra tion, General State and municipal, and rests on the great distinguishing principle ot the recognition of the rights of man. The an cient republics absorbed the individual in the State, prescribed his religion, and con trolled bis activity. The "American system rest's on the assertion of the equal right of every, man to lite, liberty and the pursuit of happiness; to freedom of conscience, to the culture and exercise of all his ' faculties. As a consequence, the State government is limited as to the General government in the interest of the Union, as to the individ ual citizen in the imerest of freedom. States, with proper, limitations of power, are essential to the existence ol the Consti- i tutiori of the United States. At the very commencement, when we assumed a place among the powers ot the earth, the Decla ration of Independence was adopted by States ; so also were the Articles ot Con federation; and when "the people of the United States" ordained and established the Constitution, it was the aernl ef the States, one by onwhich gave it vitality. . In the event, ton, of any amendment to the Con siitution. the proposition of Congress needs the confirmation of Stales. Without Slates, one great branch of the legislative government would be wanting. And il we look beyond ' the' letterof the Constitution to the character of our country, it capacity for comprehending within its jurisdiction a Vast continental empire is due io the system'of Slate." The best security for the perpetual existence of the States is the '"supreme authority" of the Constitu tion of the United Stttes.t The perpetuity of fhe Constit6tion brings with it the per petuity of the State ; their mutual relation majtei us whsf we are; and in our political system their connection is indissoluble. The whole cannot exist without the pns, nor the parts without the whole So long as the Consiitntion of the United States en dure, "the State's will endure; the destruc tion of the oni ib destruction ol the other; the preservation of the one is the preservation ol the oiher, . I have thus explained my views of the mutual relations of. tne Constitution and ihe States, because they unfold ihe princip'es on which I have sooghl to solve (he mo mentous questions and overcome the ap palling difficulties that met me at the very commencement of my administration. It has been my steadfast object io escape from the sway of momentary pa-sion auJio de rive a healing policy from the fundamental and unchanging principles cf the Constitu tion i I.fouttd the States coffering from the ef fects o,a pirll war. Resistance lo the Gen. eral government appeared to have exhausted iUelf. : The Uniied States had recovered possession of their ions and arsenal ; and tleir a.rriijes .were.ia the ,. occupation of ev ery Siaie which had exempted to secede. Whether ihe . territory within ihe limits of those i States should be held as conquered territory 'orjder military acthority. emanat- , ins from the President as the head of the arrry,wasthe first question thai presented itell for decision. Now, military govern- mer.ts, established for an indefinite period,! would havn offered no ecarity lor the early suppression of discontent ; would have di-1 vided ihe people into the vanquishers and j the vanquished ; and would hae enven- 1 omed hatred, rather than restored affection, j Once established, no precise limit to their continuance was conceivable. They woald ' have occasioned an incalculable and ex-'. hausting expense. Peaceful emigration io ; and from that portion, of the country ia one ; of 'the best means thai can be thought of ' for the restoration of harmony and that em-1 igration would have been prevented ; for what emigrant from abroad, what industri ous citizen at home, would place himself willingly under military role f . The chief persons who would have fol lowed in the train of the army would have been dependent on the General govern ment, or men who expected profit from the miseries ol their erring fellow citizens. The powers of patronage and rule which would have been exercised under the President ever a vast and populous, and naturally wealthy region, are greater than, unless un der extreme necessity, I should be willing to entrust to any one man ; they are such as, for myself, I could never, unless on oc casions of great eirergency, conent to ex ercise. The willful use of such powers, if continued through a period of years, would have endangered the purity of the general administration and the liberties of the States which remained loyal. Besides, the policy of military rule over a conquered territory would have implied that the Stales whose inhabitant may have tak en part in the Rebellion had, by the act of those inhabitants, ceased to exist. But the true theory is, that all pretended acts of secession were, from the beginning, noil and void. The States cannot commit trea son, nor screen the individual citizens who may nave committed treason, any more than they can make valid treaties or engage in lawful commerce with any foreign Pow er. The States attempting to secede placed themselves in condition where their vi tality was impaired, bat not extinguished their functions suspended, but not de stroyed. But if any State neglects or refuses to per form,! is oCiees, there is the more need iial the General government should maiotain alii its authority, and as soon as practicable, re so me-the exercise ot all Its functions., On this principle I have acted, and have grad; caliy and qoretly, and by almost impercep' tible steps soosht to . restore the rightful energy of the General government and of the Stages. To that end, Provisional Gov ernors bare been appoin'ed for the -States, Conventions called. Governors elected, Leg islature assembled, and Senators and Rep resentatives chosen to the Congress of the United States. At the same tine, ihe Courts ef the-United States, as far as could, be done, have been re opened, so that the laws of Uhe . United Siates may be enforced through their agen ey. , The blockade ; baa been :rernoved and the custom houses re-established in ports of entry, so that the revenue of the United Stales may be collected. The Post OQce Department renews -its ceaseless, activity. and the ..Csneral government ia thereby an- abl - d to commsnicate promptly with its the General Government brings with il a blessing to the States over which they are extended 1 Is it not a sure promise of har mony and renewed attachment to the Unicn that, after all that has hsppened, the return of the General Goverment is known only as a beneficence? I know very well that this policy is attend , ed with some risk : that tor its success it requires at least the acquiescence of the States which il concerns; that it implies nn invitation to those States, by renewiog their allegiance to the United Stales, to resume their functions a Slates of the Union. But it is a risk that must be taken; in the choice of difficulties it is the smallest risk; and to diminish, and, if pdsnible," to remove all danger,'! have felt it inc umbent on me to assert one other power of the General Gov ernment the power of pardon.. . , At no State can throw a defence over the crime of treason, the power 6f pardon is ex clusively vested in The Executive Govern ment of" the United States. In exercising that power, ! have taken every precaution to connect it with the clearesf recognition of the binding force of the laws of the Unitid States, and an unqualified acknowledgment of the great social change of condition in re gard lo slavery which has grown out of the war. - - - . The next step which I have taken to ra store the constitutional relations of the States has been an invitation to them to par ticipate in the high office of amending ihe Constitution. Every ' patriot most wish for a general amnesty at the earliest epoch con sistent with public safety. For this great end theie is need ol a concurrence of nil opinions, and the spirit of mutual concilia- j lion. All parties in the late terrible conflict most work together in harmony. . . It is not loo much to ask, in the name of the whole people, that, on the one side; the plan of ietoraiion shall proceed in conform ity with a willingness to cast the disorders of the past into oblivion; and that, on the other, the evidence of sincerity in the future maintenance of the Union shall be put be yond any dvobt by. the ratification of tte proposed amendment to ihe Constitution, which, provides lor the abolition of slavery forever within the limits of our country. So long as the adoption of this amendment is delayed, so long will doubt, and jealousy, and uncertainty prevail. This is ihe meas ure which will , efface the sad memory of the past; this is the measure which will most certainly call population, and capital, and security to those parts of the Union that need them most. v Indeed it is not too much to ask of the Slates which are now resuming their places in the family of the Union, to give this pledge of perpetual loyalty and peace. Until il in done, the past, however much we may desire il, will not be forgotten. The adoption of the amendment reunites us be yond all power of disruption. It bals the wound thai is sit 11 imperfectly closed; it re moves slavery, the element which has so loug perplexed and divided the country; it make of ct, once more a nnited people, re newed and strengthened, bound more than ever to mutual affection and snpport. The amendment to the Constitution beine adopted, it would remain for the States,' whof-e powers have been so long in abey- hucc, to resume their places in ihe two branches ot the National Legislature, and thereby complete the work of restoration. Here il is for yon , fellow-citizens of the Sen- ate, and for you, fellow citizens of the Houe of Representative?, to judge, each of yon for yourselves, of the elections, returns and qualifications of your own members. The full assertion of the powers of the General Government requires the holding of Circuit Courts of the United Slates within ihe districts where their antbority has been interrupted. In the present posture of our public affairs, strong objections have been urged to holding those courts in any of the Slates where the rebellion has existed; and il was ascertained by inquiry, that the Cir cuit Court of the United States would not be held within the District of Virginia during the autumn or early winter, nor until Con gress should have ' an opportunity to con sider and act on the whole subject.' To your deliberations the restoration of this branch of the civil authority of the Unit ed States is therefore necessarily referred, with the hope that early provision will be made tor the resumption of all its fnnctions It is manifest thai treason, most flagrant in character, has been committed. Persons who are charged with its commission should have lair and impartial trials in the highest civil tribunals ot the country, ir order that the Constitution and the laws mar be fully vindicated ; the troth clearly established and affirmed that treason is a crime, that traitors should be punis'ied and the offence made infamous; and, at the same time, thai the question may be judicially settled, finally and forever, ibat no State of its own will has the riht to renounce its place in the Union. The relations of the General Government towards the fonr millions of inhabitants whom the war has called into freedom have engaged my most serious consideration. On ihe propriety of attempting to make the freedmen electors by proclamation of the Executive, I took for my counsel the Consti tution itself, the interpretations of that in strument by its authors and their co tempo raries, and recent legislation of Conrex. When, at the first movement toward iode pendence the Congress ol the United States instructed the several Slates lo institute gov ernments of their own,-they left each State to decide for itself the conditions for the enjoyment of the elective franchise. During the pesiodol the Confederacy there continued to exist a' very great diversity in the qualifications of electors in the several Stales; and even within a State a distinction of qualification prevailed with regard to the officers who jre to be chosen. The Con stitution of , tho United States recognizes these diversities when it enjoins that, in the choice of members of the Houe of, Kepro seutatives of the United Stales, ;tbe electors in each State shall have the qualifications requisite for electors of the most nnmeroos branch of the Slate Legislature." After the formation of the Constitution, it lemained, a before, the uniform usage for tach State to enlarge the body of its electors, according to its own judgment; and, under this system, one State after another baa pro ceeded to increase the number of its electors until nary, universal suffrage, or aorasihing very near it, is the general rule. . t So fixed was this reservation of power ia tile habits of the people, and so unquestion ed has been the interpretation of the Con stitution lhat during the civil war the late garding it; and in 'the acts of Congress, during that period, nothing can be found whicn, during the continuance ef hostilities, much les after their close, would have sanctioned any departure by the Executive from a policy which has 'so uniformly ob tained. ' " Moreover, a concession ' of the elective franchise to the freedmen, by the act of the President of the United Slates, must have beep extended to all colored men, wherever found, and 'so must have established a change of suffrage in the Northern, Middle and Western States, not less than in ihe Southern and Southwestern. Such an act would have created a new class of voters, and would have been an assumption of power by the President which nothing in the Constitution or laws of the United States would have warranted. On the other hand, every danger of con flict is avoided when the settlement of the question is referred lo the several States. They can, 'each for itself, decide on the measure, and whether it ia to be adopted at once, and absolutely, or introduced grad ually and with conditions. In my judgment, the freedmen, if they show patience and manly virtues, will sooner obtain a partici pation in the elective franchise through the States than through the Geoeral Government, even if it had power io intervene. When the tumult of emotions that have been raised by the suddenness of the social change shall have subsided, it may prove that they will receive kindliest usage from some of those on whom they have heretofore most closely depended. But while I have no doubt that nowafter the close of Ihe war, it is not competent for the General Government to extend ihe elect ive franchise in the. several Stales, it is equally clear thai good faith requires the security of the iree Irnen in their liberty and thir property, tbeir right to labor, ami their riJn toe aim the j o -i retan of thi'ir lator. J cannot too etrotiuly - urge a dipa-iona!e treatment of this subject, which should be carefully kept aloot Irom all party strile. We marl equally avoid basty assumptions of any natural impossibility for the two races to live side by sids,in a state of mutu al benefit and good will. The experiment involves os in no inconsistency ; let os(then, go on and make that experiment in good faith, and not be too easily disheartened. The country is in need of labor, and the freedmen are in need of employment, cul ture and protection. While their right of : vnluritarv micr:inn and inafration ia not to be questioned, I would not advise their forced removal and colonization. Let us rather encourage them to honorable and useful industry, where it may be beneScial lo themselves and to the country ; and, in stead of basty anticipations of the certainty of failure, lal there be nothing wanting to the fnir trial of the experiment. The change in their condition is the substitution of la bor by contract for the status of slavery. The Iree Jmen cannot !&ir!y be accused of unwillingness to work, so long as a doubt remains about his freedom of choice in his pursuits, and the certainty of his receiriog his stipulated wages. In this the interests of (he employer and employed coincide. The employer desires in his workmen spirit and alacrity, and these can be perminenily secured in do other way.' And if "one ought to be able to enforce the contract, so ou?ht the other. The public interest will be bet promoted if the several States .will provide adequate protection and remedies for the freedmen. Until this is in some way accomplished, there is no chance for the advantageous use of their labor ; and the blame of ill success will not rest on them. I know that sincere Dhilanthropr is ear nest for the immediate realization of its re motest aims ; but time isalways an element in reform. It is one of the greatest acts on . record to nave orouzru tour million ol peo pie into freedom. The career of free indus- ' try must be fairly opened to them ; and then their future prosperity and condition must, after all, rest mainly on themselves. If hey fail, and so perUh away, lei us be careful that the failure shall not be attribut able to any denial ol justice. In all that re lates to the destiny ot the IreeJmen,-we need not be too anxious to read the future; many incidents which, from a speculative point of view, might raise alarm, will qui etly settle themselves. Now that slavery is at an end, or near ito end, the greatness of its evil, in the point of view of public economy, becomes more and more apparent. Slavery was essentially a monopoly ot labor, and as such locked the States where ii prevailed against the in coming of free industry. Where labor was the property of the capitalist, the white man was excluded from employment, or bad but the second best chance of finding it, and.the foreign emigrant turned away from (he region where his condition would be so pre carious. With the destruction of the mon opoly, free labor will hasten Irom all parts of the civilized world to assist in developing various and immeasurable resources which have hitherto lain dormant. The eight or nine States nearest the Gulf of Mexico have a soil of exuberant fertility, a climate friendly to long life, and can sus tain a denser population than is found as yet in any part of our country. And ihe future inflox of population to thra will be mainly from the North, or from the most cultivated nations in Europe. From ihe sufferings that have attended them during our late . struggle, let us look away to the future, which is sure io be laden tor them with greater nrper;tv thin has ever oatore I been k jiiwn. The 'removal ot the monop oly ot ave labor is a p 0 )4? that those re gions will be peopled by a sumero-js a id enterprising population, which will vie with any in' the Union in compactness, inventive genius, wealth and industry. Oar government springs from and was .made for the people, not the people for the government. To them -ii owes allegiance; from them il most derive its courage, strength and wisdom. But, shile the government is thus bound to defet to the people, trom whom it derives its existence, it should, from the very consideration of its origin, be strong iu its power of resistance to the es tablishment of inequalities. Monopolies, perpetuities and class legislation are con trary to the genius of free Government, and ought not 10 be allowed . Here there . is no room for favored classes or monopolies ; the principle of our government is that of equal law and freedom of industry. Whenever monopoly obtains a, foothold, it is sore ta be a source of danger, discord and trouble.- We shall bat falfill oar duties as legislators by according "equal and ex act justice to ail men,'-special privilege! to cone. The government is subordinate to the people ; but as the agent and represent ative of the people,' it 'must be held supe rior) lo monopolies, which in - themselres, ocght never to b prtedandwhi?!!, The Constitution confers on Congress the right to regulate commerce among the sever al States. It is of the first necessity for the maintenance of the Union, that that, com merce should be free and unobstructed. . No State can be justified in any device to tax the transit of travel and commerce between States." The position of many States is eucli thatif they were allowed to take advantage of it for purposes of local reveoue, the com merce between States might be injuriously burdened, or even virtually prohibited. It is best, while tbe country is still young, and while tbe tendency to dangerous monopolies of this kind is still foeble, to use the power of Congress so as to prevent any selfish im pediment to the frse circulation of men and merchandise. A tax on travel and merchan dise, in tbeir transit, constitutes one of the worst forms of monopoly, and tbe evil is in creased if coupled with a denial of tbe choice of route. When the vast extent of our coun try is considered.it is plain that every obsta cle to the free circulation of commerce be tween the States ought to be sternly guarded against by appropriate legislation, wilhiu tbe limits of the Constitution. The report of the Secretary of the Interior explains tbe oondition of the public lands, tbe transactions of the Patent Office and the Pension Bureau, tbe management of our In dian affairs, the progress made in tbe con struction of the Paoifio Railroad, and fur nishes information in reference to matters of local interest in the District of Colombia. It also presents evidence of the successful op eration of tbe Homestead Act, under the provisions of which 1,100,553 acres of the public lands were entered during the last fis cal year more than one-fourth of tbe whole number of. acres sold or otherwise disposed of during that period. It is estimated that the receipts derived from-this source are sufficient to cover the expenses incident to the survey and disposal of the lands entered under this Act, and that payments in cash to tbe extent of from forty to fifty per cent, will ba made by set tlers who may thus at any tieie acquire title before the expiration of the period at which it would otherwise vest. The Homestead po licy was established only after long and ear nest resistance ; experience proves its wis dom. Tbe lands, in the bands of industri ous settlers, whose labor creates wealth and contributes to tbe public resources, are worth more to the United States than if tbey bad been reserved as a solitude for future purchasers. The lamentable events of the last four years, and the sacrifices made by the gallant men of our Army and Navy, have swelled the records of the Pension Bureau to an un precedented extent. On tbe 30th day of June last, tbe total cumber of pensioners was 85.980, requiring for their annual ray, ex clusive of expenses, the sum of $18,023,415. The number of applications that have beon allowed since that data will require a large increase of the amount for the next fiscal year. The means for tbe payment of the stipends due under existing laws, to our dis abled soldiers and sailors, and to the fami lies of such as have perished in thi service of tLe country, will no duubt b3 cheerfully and promptly granted. A grateful people will not heeitata to sanction any measures having f?r their object the relief of soldiers muti lated and families made fatherless in thi efforts to preserve our national existence. The report of the Postmaster General pre sents an encouraging exhibit of the opera tions of the Post Office Department during the year. The revenues of the last year from the loyal States alone exceeded the maxi mum annual receipts from all the Stages pre vious to tbe rebellion, in the sum of 5G.03S, 001 ; and tbe annual average increase of reve nue during tbe lat four years, compared with the revenue of tbe four years immedi ately preceding the rebellion, was $3,533,845. The revenue of tbe last fiscal year amount ed to S14.55G.15S, and tho expenditures to 13,69 l,723,leaving a surplus of receipts over expenditures of $861,420. Progress has been made in restoring the postal service in the Southern States. The yiews presented by tbe Postmaster General against the policy of granting subsidies to ocean and mail steam ship lines upon established routes, and in favor of continuing the present system, which limits the compensation for ocean service to the postage earnings, are recommended to the careful consideration of Congress. It appears, from tbe report of the Secreta ry of tbe Navy, that while, ut the commence ment of the present year.there were in com mission 530 vessels of all classes and descrip tions, armed with 3000 guns and manned by 51,000" men, the number of vessels at present io commission is 117, with S30 guns and 12, 123 men. By this prompt reduction cf the naval forces the expenses of tho Government, have been largely diminished, and a number of vessels, purchased for naval purposes from the merchant marine, have been re turned to the peaceful pursuits of com merce. Since the suppression of active hostilities our foreign squadrons Lave been re-established, and consist of vessels much more ef ficient than those employed on similar ser vice previous to the rebellion. The sugges tion for tbe enlargement of the navy yards, and especially for the establishment of one in fresh water for iron-clad vessels, is de serving of consideration, as is also the re commendation for a different location and more ainpla grounds for the Naval Acade my. In the report of the Secretary of War, a general summary is given of tbe military campaigns of 1864 and ISoo, ending in the suppression of armed resistance to the na tional authority io the insurgent States. The operations of the general administrative bu reaus of the War Department during the last year are detailed, and an estimate made of the appropriations that will be required for military purposes in the fiscal year com mencing the 30th day of June, 18GG. The national military foree 00 the 1st of May, 1SG5, numbered 1,1.00.516 men. It ia pro posed to reduce the military establishment to a peaco footing, comprehending fifty thousand troops of all arms, organized so as to admit of an enlargement by filling up the ranks to eighty-two thousand six hundred, if the cir cumstances of tbe country should require an augmentation of the army. , The volunteer force has already been re duced bT the discharge from service of over eight hundred thousand troops, and the De partment is proceeding rapidly in the work of further reduction. The war estimates are reduced from 510,240,131 to $33,814,481, which amount, in the opinion of the Depart ment, ia adequate for a peace establishment. Tbe measures of retrenchment in snob Bu reau and branch of tbe service exhibit a dil igent economy worthy of commendation. Reference is also made in the report to the necessity of providing for a uniform militia system, and to tbe propriety of making euit able" provision for wounded and disabled of- subject ef vital interest to its honor and proa- j perity, and should command the earnest con- sideration of Congress. Tbe Secretary of the Treasury will lay before you a full and de- ' tailed report of the reoeipts and disburse-! ments of the last fiscal year, of the first quar- ' tsr of tbe present fiscal year, of the probable receipts and expenditures for the other three quarters, and the estimate for the year fol lowing tbe 30th of June, 18GC. I might con tent myself with a reference te that report, in which you will find all the information required for yonr deliberations and decision. But the paramouut importance of the subjeot so presses itself on my mind, that I oanoot but lay before you my views of the mea sures which are required for the good char acter, and, I might also say, for the exis tence of this people. The life of a republic lies certainly ia tbe energy, virtue and intelligence of its citi zens, but it ia equally true tbat a good rev enue system ia the life of an organized Gov ernment. I meet you at a time when the natiou baa voluntarily burdened itself with a debt unprecedented in our annals. Yast as is its amount, it fades away into nothing when compared with tbe countless blessings that will be conferred upon our couutry and upon man by the preservation of the nation's life. Now, on tbe first occasion of the mast ing of Congress since the return of peace, it is of the utmost importance to inaugnrate a just polioy, which shall at onoo be put in motion, and which shall commend itself to those who come after os for ita continuanos. We must aim at nothing less than tba' complete effaeement of the financial evils that naoessarily followed a state of civil war. We must endeayor to apply the earliest remedy to the deranged state of the currency, and not shrink froei devising a policy which, without being oppressive to the people, shall immediately begin to effect a reduction of tbe debt, and, if persisted in, discharge it fully within a definitely fixed number of years. It is our first daty to prepare ia earnest for our recovery from the ever-increasing evils of an irredeemable currency, without a sudden revulsion, and yet without untime ly procrastination. For that end we must, each in our respective positions, prepare the way. I bold it the duty of the Exeoutive to insitt upon frugality in tbe expenditures ; and a sparing economy is itself a great ua tional resource. Of tbe banks to which au thority has been given toisaue notes secured by bonds of tbe Unnitcd States, we may re quire the greatest moderation and prudeoce, and the law must be rigidly enforced whan ita limits are exceeded. Wa may, each ona of us, counsel our active and enterprising countrymen to be constantly on tbeir guard, to liquidate debts contracted in a paper currency, an i, by conducting busi ness as nearly as possible on a system of oash payments, or short credits to hold themselves prepared to return tojthe standard ofgold and silver. . To aid our felbw-oitizens in the pro dent management sf tbeir monetary affairs, the duty devolves on us to diminish, by law, the amount of paper money now in circula ti:n. Fire years ago the bank note circulation of the country amounted to not much more than two hundred millions. The simple statement of .the fact raccommends more strongly than any words of mine could do, the necessity of our restraining this expan sion. The gradual reduotion of tbe currency is the only measure that can save the busi ness of the country from disastrous calami ties ; and this jan be almost impreceptibly iccomplisbad by gradually fundiag the na tional circulation in securities that may be made redeemable at the pleasures of the Government. Onr debt is doubly secure first in the ac tual wealth and still greater undeveloped re sources cf the country ; and next in tbe char acter of our institutions. The most intelli gent observers among political economists have failed to remark, tbat the public debt of a country is safe in proportion as its peo ple are free ; that the debt of a republic is tbe safest cf all. Our history confirms and establishes tbe theory, and is, I firmly be lieve, destined to give it a still more signal illustration. , Tbe secret nf this snparimty springs not merely from the fact tbat in a republic the national obligations are distributed mors widely through countless numbers ia all classes of society; it has its roots in the char acter of our laws. Hera all men contribute to the publio welfare, and bear their fair share of tbe public burdens. During the war, under the impulses of patriotism, the men of the great body of the people without regard to their own comparative want of wealth, thronged to our armies and filled ourfiets of war, and held themselves ready to offer their lives for tbe public good. Now. in their turn, the property and income of the country should bear tbeir just proportion of tbe burden of taxation, while in our impost system, through means of which increased vitality is incidentally imparted to all the industrial interests of the nation, the duties should be e? adjusted as to fall most heavily on articles of luxury, leaving the nocessaries of lif as free from taxation as the absolute wants of the Government, economically ad ministered, will justify. No favored class ehoull demand freedom from assessment, and the taxes should be so distributed as not to fall unduly on the poor, but rather on the accumulated wealth of the country. Wo should look at tbe national debt just as it is not as a national blessing, but as a heavy burden on tbe industry of the country, to be discharged without unnecessary dolay. It is estimated by tbe Secretary of tbe Treasury tbat tbe exdenditnres for the fiscal year ending the 30tb of Jane, 1805, will ex ceo i the receipt $112,194,947. It is gratify ing, however, that it is also estimated that the revenue for the year ending tbe 30th of June,TS67. will exceed the expenditures in the sum of S414.G2S.818. This amount, or so much as may be deemed sufficient for tho purpose, may be applied to the reduction of tbe debt, which, on the 31st day of October, 13G, was ?2.740.S54,759. Every reduction will diminish the total amount of interest to be paid, and so enlarge the means of still further reductions, until the whole shall be liquidated ; and this, as will be seen from fbe estimates of the Secre tary of tho Treasury, may be accomplished by annual payments even within a period not exceeding thirty years, I have faith that we shall do all this within a reasonable time, that, as we have amazed tbe world by a sup pression of a civil war which was thought . to be beyond tbe control of any Government, so we will equally show tbe superiority of our institutions by the prompt and faithful, discharge of our national obligations. The Department of Agrioulture, under its present direction, is accomplishing muob ia developing and utilizing the vast agricultu ral capabilities of the country, and for infor mation respecting tfie details of itsmanage- I have dwelt thus fully en oar domestic affairs beosuaa of their transoandant im portance. Under any circumstances, our great extent of territory and variety of cli mate prodnoing almost everything tbat is necessary for the wants, and even the com forta of man, make us singularly indepen dent of the varying polioy of foreign Powers, and to protect us against every temptation to "entangling alliances," while at tbe rrs-. cm ice re-esiaciisomf m 01 narmony, and toe strengtu tbat oomes from harmony, will be our best security egainst "cations who feel power and forgot right." For myself, it bas been and will ba mr constant aim to promote peace and amiry with all foreign nations and powers r and I have every reason to believe that they all. without exception, are animated by the same disposition. Our relations with the Empe ror of China, so recent" in their origin, are most tnendly. . Uur commerce witb bis do minions is reoeiving new developments ; and it is very pleasing to find that the Govern ment of that great Empire manifests satis faction with our polioy, and repeses just coo- naence in tue fairness which marks our in tercourse. Tba unbroken harmony between the Uni ted States and the Emperor of Russia is re ceiving a new support from an enterprise de- signea to carry telegrapbio lines across "tba continent of Asia, through his dominions. and so to connect us with all Europe by a j oew cuanuei 01 intercourse, uur commeroe with South America is about to receive en couragement by a direot line of mail steam-E ships to the rising Empire of Brazil. Tbe distinguished party of men of science who bare recently left our country to make a soi-j entifio exploration of tbe natarsl bistorv.i and rivers and mountain ranges of that're-l gion, hare received from tbe Emperor that! generous welcome wbioh was to have been expected from bis constant friendship fur the IT 1 C . . tl. uuiteii oiaies, ana nis weti-xnowa zeal ml promoting tbe advancement of knowledge. A hope is entertained that our commeroe with the rich and populoas countries that! border tbe Mediterranean Sa may be large-1 iv lucrraeou. coining win ue wanting on I the part of this G )vernment,"to extend tbnj protection .of oar fellow-citizens. We receival from tbe powers in that region assurances vfl g xkI will ; and it is worthy of ' note that a, I speoial enyoy bas brought as messages , jf oondolence on tbe death of our late Chief! Magistrate from the Bey of Tunis, whose t rule includes tbe oil domiuioos of Carthage " on the African coast. . -T? Our domestie contest, now happily ended, . bas left some trsoes in our relation with one, at least, cf the great maratims Powers. The formal accordance of beligerent rights to the insurgent States was unprecedented, ani bas not been justified by tbe issue. - But in the systems of neutrality pursued by tbe Po were which made that concession, there! was a marked difference. " The materials of war for the insurgent States were furosshsd in a great measure, front tbe workshops of Great Britain, and British ships, manned by Britinh subjects and prepared far receiving iuwsu biuibujcuii, oti.ica irum. iui pone oi. Ureat iJritaia to make war on American! commerce, under the shelter of a commit eion from the insurgeat States. ..... . There ships, having once eeoaped from! British ports, ever afterwards entered then! ia every part of the world, to refit, and so to! renew their depredations. The consequences! of this eonduct was mist disastrous to the! States then in rebellion, increasing their de-l eolation and misery by tbe. prolongation oft our civil contest. It bas, moreover, theeffeot to a great extent, to drive the American flag! from the sea, and to transfer maoh of our! shipping and commeroe to the verv Power whose sabjscts had oreated the necessity for! euch a change. These events took place be-l fore I was called to the administration of! the Government. The sincere desire fori peace by which I am animated led ma toap- prove the proposal, already made, te submit the questions which had thus aruea between the two countne; to arbitration.' Thefts "uestions are of such moment that they must have commanded the attention of the great powers, and uie so interwoven with! the peace and interest of every one of them1 as to have insured an impartial decision. I regret to inform you that Great Britain de clined tbe arbitrament, but, on the other hand, invited us to the information cf a joiut commission to settle mutual claims between the two countries, from wbioh those for the depredatioos. before mentioned - should be ' excluded. The proposi ioo, in thak very unsatisfactory form, has been declined. Tbe United States did not present thisoV ject as an impeachment of the good faith of a Power which whs professing the most friend ly dispositions, but as involving questions of public law, of which the settlement is essen tial to the peaee of a nation ; and although pecuniary reparation to ' their injured oiti sens would have fallowed incidentally on a decision againstGreat Britain, such com pen- i satioo was not their primary objeot. Tnr had a higher motive, and it was in the in terests ot peace and justice to establish im portant principles of international law. Tbe correspondence will be plaoed befre tou. The ground on which tbe British Minis ter rests his justification is, substantially. that tbe uanioipal law of a nation, and the domestic interpretations of that law, are the measure cf its duty as a neutral, and I feel bound to declare my opinion before you ao 1 before the world, that that juetioation can not be sustained before tbe tribunal or m tinna At tbe same time I do not advise to any present attempt at redress by acts nf legislation. For the future, friendship be tween the two countries must rest 03 las basis of mutual jastice. rrora the moment of the estaeuehwaent nf oar fre Constitution, the civilized world has been cnnvnlaad bv revnlntlnna in th ii mrougn an those revolutions tne Uuiuj States have wisely and firmly refused to b come propagandists of republicanism. '-It is tbe only government suited to oar "condi tion ; but we have never sought to impise it cn others, acd ws have consistently fol lowed the advioe of Washington to reoom mend it only by the careful preservation and prudent use of the blessing. During' all the ioterveoing period tbe policy of Eu ropean powers and of the United States has, on tbe wbole, bsea harmonious. Twiee, in deed, rumors of tbe invasion of some parts of America, in tbe interest of mooarohy, have prevailed ; twiee my predeeesaore Lav .1 a .... . . 'H r - had ooeasion to announce the views of thUl nation in respect to such interference. -. On both oeoasione tbe remonetranoe of the United. States was respeoted, from a deep conviction on tbe part of European govern ment that tbe system of non-interference and mutual abstinence from propagandises was the true rule for the two fceiaisphsres. Sinae those times we have advanced in wealth