BY S. J. ROW.
CLEARFIELD, PA., WEDNESDAY, DECEMBER 16. 1883.
VOL. 15.-NO. 16.
Last Annual Messags of
andbew JOHNSON-,
Delivered December 9, 1813.
felloe citizen of the Senate aud House of
Rrprestiitaiua :
Upon the reassembling of Congress it,
again becomes ui? duty to call your atten
tion to the Mte of the Union, and disor
ganized condition under the various laws
which have been passed upon the subject of
reconstruction. It may safely be assumed
as an axiom in the government of" the States,
that the greatest wrongs inflicted upon a
n!.! are caused by unjust aud arbitrary
(ei.-lation, or by the unrelenting decree. of
despotic rulers, and tnat injurious and op-pre.-iive
measures are the greatest evils that
an be inflicted upon a nation. The legis
lator or the ruler who has the wisdom and
magnanimity to retrace his steps when con
victed of error, will sooner or later be re
warded with the tespect and gratitude of an
intelligent and patriotic people. Our own
history, although embracing a period of less
than a century, affords abundant proof that
mot, if not all our domestic troubles are
directly traceable to violations of the organ
ic law, and excessive legislation. The most
striking illustrations of this fact are furnish
ed by the enactments of the past three years
upon the question of reconstruction. Af
ter a fair trial theyhave substantially failed,
and proved pernicious in their results, and
there seems to be no good reason why they
tbould remain upon the statute books.
States to which the Constitution guaratces
a Republican form of Government, have
been reduced to military dependencies, in
each of which the people have been made
subjects to the arbitrary will of the com
manding General. Although the Constitu
tion requires that each State shall be repre
sented in Congress, Virginia, Mississippi
and Texas are yet excluded from the Hous
es, and contrary to the express provisions of
thit instrument, were denied parte! pation
in the recent electron fur a President and
Vice President of the United Stares. The
Sttempt to plac the whole population un
der the domination of persons of color in
the Sot'th, has impaired, if not destroyed
the kindly relations that had previously ex-i-ted
between them, and mutual distrust
l.as rendered a feeling of animosity which,
l.ailinj in some iustances to collision and
Uomlshed. has prevented that co-operation
letween the two races so essential to the
success of industrial enterprises in the
Smthern States. Xor have the inhabitants
of those States alone suffered from the dis
tuned condition of affairs growing out of
tbr-e Congressional enactments. The en
tine Union has Itoen agitated by jrrave ap
prehensions of trouble, which might again
inr.'lve the eaee ot the nation. Its inter
ests have lecn injuriously affected by the
iiVmneeinent of business and lab't, the eon
sequent want of prosperity throughout that
ror:in of the country. The Federal Con
ttitiuiuu, the Magna Charta of American
riibts, under whose wise and salutary Pro
i'k't'"e we have successfully conducted all
"nr domestic and foreign affairs; sustained
our-elves in peiec and in war, and become
a treat nation among the powers of the
-.rth. must assuredly now lie adequate to
the settlement of questions e-.owing out of
the civil war waucU ali ne fur its vindication.
Tlti- .:-.! fact is made most wauifet by
i:e niii.i.tiuii of the country. When Con
assembled in the mouth of December,
i civil strife had ceased. The spirit of
p'U-'limi bad si-tnt its entire force in the
S'n'lio'.n States. The pcop'e bad warmed
if tf. national life, anil throughout the whole
country a healthy reaction in public senti
ment had taken place by the application of
ju s:n.idV, yet effective provisions of the
l.in-rttt'i m. The Executive Department,
i;h the voluntary aid of the States had
biuught the work of restoration as neaf
Mtupktion as within the scone of its au
thority, an 1 the nation was encouraged by
the prospert of an early and satisfactory
adjustment of all its difficulties. Congress,
biwever. intervened, and refused to perfect
the work so nearly consummated, declined
to admit members from the States, adopted
eourse of measures, frustrated all that
ha.Jbeen successfully accomplished, and af
j?r three years of agitation and strife, has
ie l 'he country farther from the attainment
f union and fiaternal feeling, than at the
inception of the Congressional plan of re
tvnruction. needs no argument to show
'hat the legislation which has produced such
wojeijiKnees should be a brogated, or else
10 conform to the genuine principles
ff K puMican Government. Under the
majene of pirty passions and seetion-
prejudice other acts have been parsed not
irranted by the Constitution.
1 ongress has already been ma le familiar
f nTi'"' ''-'PWting the Tenure of Of
ti ll. Kxpuriunce has proved that its
repeal is demanded by the best interests of
J C"'",,I7' ?"1 that while it remains in
'TO the President cannot enjoin that rigid
jwountabilityof public officers so essential
honest and efficient execution of the
W4, ''" revocation would enable the Exes- j
wire department to exercise the power of
'PPomtment and removal in acordanci with I
the ordinal design of the Federal CWtitu- I
rhe at uf March 2d, 1867, making j
Prropnati,,,,., f1)r tjie HUpport 0f tj,e armv I
Ur ,l year M1,l"ff June 30th, 186, and '
o;hr rmrpnses, contains provisions
;!!'' ,n,;rfere with the President's consti
,f '' '"-'"""s as Commander-in-Chief
,i ?rl"v' a,,,J deny to States of the Union
, V'f ''froteet themselves by means of
ln!,r',ri militia. 3
1 nev provisions should be at once annul- J
.' ' r'Jr Ui!e ths first might, in times of,
srtot emergency, seriously embarrass the!
, ,7I, " efforts to employ and direct
' co-,lmon strength of the nation for its
( ' V .tl the express declaration of the
kV;. Ut",n- a well reeulated militia
the "er?1'!er the Constitution is to be made
a fa!Un j an( ""erring guide, thev
totK Ir,Ketiv of no permanent benefit
ti. .t, 4V,ntry n,i shnnld not be permitted
a,,T """y monuments of deficient
Jf j.- wI'ieh has characterized our recent
de"m.n!0,,i. e cor"1i'in of our finances
of "is theearly and earnest consideration
of01'neres?- .Compared with the growth
rn JPU mn PnWic expenditures have
Knn "L monnt ui precedented in our
, Population of the United
"s.i,L.'" '50.wa3 nearly four millions of
--U' ,Iier,saslD each decade about thir
;n m ent' " reached in I860 thirty
- IMlOno. an in-re nfwnn knnnbt
W-H1"- 0n -the Population in 17'JO. Io
t timated it will reach thii
CvA . j"0.n, or n increase of eight h
-o nd uxxj-vsZt per cent, iqaeret
rty-
nn-
r
Ci."' the ,r'fht of the people to keep and
beV7Yba11 not infrimred. It is be
V , 4 te reteal of such laws would
'cepted l.y the American people as at
rn.; t Plr.,! return t0 tnc fundamental
eTenty-
nine years. The annual expenditures of
the Federal Government in 1791 were four
millions two hundred thousand dollars. In
1820, eighteen millions two hundred thou
sand dollars. In 1850, forty-one millions.
In 1SC0, sixty-three millions. In 1865.nenr
ly thirteen hundred millions, and in 1869, it
is estimated by the Secretary of the Treas
ury in his last annual report that they will
be three hundred and seventy two millions.
By comparing the public disbursements
of 1869 as estimated with those of 1791, it
will be seen that the increase since the be
ginning of our Government has been eight
thousand six hundred and eighteen per
cent., in which the increase of the popula
tion for the same period was onlyeight hun
dred and sixty-eipht per cent. Again the
expenses of the Government in 1860, the
year of peace immediately preceedinz the
war. were only sixty five millions, while in
1869 the year of peace, three years after the
war. it is estimated they will be three hun
dred and seventy millions, an increase of
four hundred and eighty nine per centum,
while the increase of population was only
twenty-one per centum of the same period.
Thee statistics further show, that in 1791
the annual national expenses com pared wit h
the population were but little more than one
dollar per capita, ami in 1860, two dollars
per capita, while in 1S69 they will reach the
extravagant sum of nine dollars and seventy -eight
cents per capita. It will be observed
that all of these statements referred to. ex
hibit the disbursements of peace periods.
It may therefore be of intcest to compare
the expenditures of the three war periods,
the war with Great Britain, the Mexican
war and the war of the rebellion. In 1814
the annual expenses inc'nlent to the war of
1812 reached the highestamount about$31,
000,000, while our population slightlv ex
ceeded 8.000,000. showing an expenditure
of only three dollars and eighty cents per
capita.
In 1847 the expenditures growing out of
the war with Mexico, reached fifty five mil
lions, and the population about twenty one
millions, giving only two dollars and sixty
cents per capita for the war expenses of that
year. InlS65 the expenditure called for by
the rebellion re.ched the vast amount of
twelve hundred and ninety millions, which
compared with a population of thirty foui:
uiilljons.gives thirty-eijtht dollars and tweu-ty-eieht
cents per capita. From the 4th day
of March, 1789, to the 30th of June. 1861,
the entire expenditures, of the Government
were seventeen hundred millions of dollars.
During that period we were engaged in wars
with Great Britain and Mexico, and were
engaged in hostilities with powerful Indian
tribes. Louisiana was purchased from
France at a cost of fifteen millions of dollars.
Florida was ceded to us by Spain for five
millions. C alifornia was acquired from
M xico for fifteeu millions, and the territory
of New Mexico wa obtained from Texas for
the sujn of ten millions. Karly in 1861 the
war of the rebellion (ommenced, and from
the 1st of July of that year, to the 30th of
June, 1865, the public expenditures reached
the enormous age-resale of thirty three hun
dred millions. Three years of peace have
intervci ed. an l during that time the dis
bursements of the government have succes
sively been five hundred a id twenty millions,
three hundred an 1 forty-six miliums, and
three hundred and ninety millions. Adding
to these amounts three hundred and seventy-two
millions estimated as necessary for
the fiscal year ending June 30th, 1869, we
obtain a total expenditure of sixteen hun
dred millions of dollarsduring the fouryears
immediately succeeding the war, or nearly
as much as was expended the seventy-two
years that preceded the rebellion, and em
braced the extraordinary expenditures al
ready named, these startling facts clearly
illustrate the necessity of retrenchment in
all branches of the puMic service. Abuses
which were tolerated during the war for the
preservation of the nation will not be toler
ated by the people now, that profound peace
prevails. The receipts from internal reve
nues and customs have, during the past three
years gradually diminished, and the contin
uance of useless and extravagant expendi
tures will involve usin National Bankrupt-y
or else make inevitable an increase of taxes
already too onerous, and, in many respects,
obnoxious on account of their inquisitorial
character. One hundred millions annually
are expended for the military force, a large
portion of which is employed in the execu
tion of laws both unnecessary and unconsti
tutional. One hundred atid fifty millions
are required each year to pay the interest on
the public debt. An army of tax gatherer
impoverish the nation, and public agtnts
placed bv Congress beyond the control of
the Kxecutive. divert from their legitimate
purposes large sums of money, which they
collect frcm the people in the name of the
Government. Judicious legislation and pru
dent economy can alone remedy defects, and
avert evils, which, if suffered to exist, can
not fail to diminish confidence in the public
councils, and weaken the attachment and re
spect of the people toward the r political in
Mitutions. Without propei care the small
balance which it is estimated will lem iin n
the Treasury at the cloe of the present fi-
cal year will not lie realized, and additional
millions lie added to a debt which is now e
numerated by billions. It is shown by the
able and comprehensive report of tin Secre
tary of the Treasury that the receipts of the
fiscal jear ending June 30th. 168. were
$40.),638.OS3, and that the expenditures for
the ann; period were S377.34').284 ; leav
in the Treasury a surplus of S28.297.798. It
is estimated that the receipts during the
present fiscal year endirg June 30th. 1S69.
will be $i42,3y2.M!S, and the expenditures
$336,152,470; showing a small balance of
$5.24.1,398 in favor of the Government for
the fiscal jc-ar ending June 30th. 1870. It
is estimated that the receipts will amount
to $327.0!K).0iH, and the expenditures to
I303.OOO.0O0; leaving an estimated surplus
of 24.000.O00.
It becomes proper in this connection !to
make a brief reference to our public indebt
edness, which has accumulated with such
alarming rapidity and assumed such culos
sal proportions. In 1789, wheu the Gov
ernment commenced operations under the
Federal Constitution, it was burdem-d with
an indebtedness of seven'y five millions of
dollars, created during the war of the Revo
lution. This amount had been reduced to
forty-five millions of dollars, when, in 1812,
war was de;lared against Great Britain.
The three years struggle that followed laree
ly increased the national obligations, and in
1816 they had attained tbesuui of one hun
dred and twenty seven millions. Wise and
economical legislation, however, enabled the
Government to pay the entire amount with
in a period of twenty years, and the extin
guishment of the national debt filled the
laud wi'h rej nejng, and was one of the groat
vents of President Jackson's administra
tion. After its redemption a large fund re
mained in the Treasury, which wa deposit
ed for safe keeping with the several States
on condition, thax it fcboultl be returned
when required by the public wants. In
1S49, the year after the termination of an
expensive war with Mexico, we found our
selves involved in a debt of sixty four mil
lions and this was the amount owed by the
Government in 1860. just prior to the out
break of the rebellion. In the spring of
1861 our civil war commtneed ; each year
of its continuance made an enormous addi
tion to the debt, and when in the spring of
1865, the nation successfully emerged from
the conflict, the obligations of the Govern
ment had reached the immense sum of $2,
873,992.909. The Secretary of the Treas
ury shows that on the 1st day of November,
1867, this amount had been reduced to $2,
491,504.450, but at the same time his re
port exhibits an increase during the past
year" of $35. 625,102, for the dubt on the
Gr-t dav of November last is stated to have
been $2,527,129,552. It is estimated by
the Secretary that the returns for the past
month will add to our liabilities tho further
sum of eleven millions, making a total in
crease during thirteen months of forty six
and a halt millions.
In m message to Congress of December
4th, 1.S65, it was suggested that a policy
should be devised, which without, being
oppressive to the people, would at once be
gin to effect a reduction of the debt, and if
persisted in. discharge it fully within a def
inite number of years. The Secretary of
the Treasury forcibly recommen is legislation
of this character, an 1 justly urstes that the
longer it is deferral the more difficult must
become its accomplishment. A'e should
follow the wise precedent established in
1789 and 1816. and without further del.iv
make provision for the pavment of our oMi
gaiions at as ea,-!y a period as may be prac
ticable. The fruits of their labors should
be enjoyed by our citizens, rather than be
used to build up and sustain moneyed mo
nopolies in our own and other lands. Our
foreign dbt is already computed by ihe
Seereiary of the Treasury at $850,000,000.
Citizens of foreiirn countries receive inter
est upon a lartce portion of our securities,
and Ameriean tax payers are made to c m
tribute large sums for their .support. The
idea that such a debt i to hee vne perms
nent, sbould lie at all times discarded, as
taxation is to heavy to be borne, and the
payment once in every sixteen years at the
present rate oV interest, of an amount equal
to the original sum. This va t debt, if per
milled to become p Tin uienf and increa-ini;.
most eventually be gathered into the hand
of a few, ar.d enable them to exert a dan
gorous and controlling p iwer in tin; affairs
of the G venimont The IjonM-xers would
become servants to the lenders, the lenders
masters of the people. We no pride our
serves upon having given freedom to fiur
millions of the colored ra;e. It will then
be our shame that forty millions of people,
by their own toleration of usurpation and
profligacy, have suffered themselves to be
come enslaved and merely exchanged from
slave owners to new taskmasters in the
shape, of bondholders and taxgatberers.
Besides permanent debts pertain to mon
archical governments, and tendim; to mo
nopoiies. perpetuities an-i class legislation
are totally irreconcilable with !ree institii
tions. Introduced into our Kepubiican sys
torn, th ?y would gradually but surely sap
its foundations and eventually subvert our
governmental fabric and erect upon its ruins
a moneyed aristocracy. It is our sacred du
ty to transmit unimpaired to o.ir posterity
the blessings of liberty which were bequeath
ed to us by the founders of the itepuhlic.and
by oar example teach who arc to follow us
carefully to avoid the da tigers which threat
en a free and independent people.
Various plans have been proposed for the
payment of the public debt. However they
may have varied as to the time and mode in
which it should be redeemed, there seems
to be a general concurrence as to the propri
ety and justness of a reduction in the pres
ent rate of interest. The Secretary of the
Treasury, in his report, recommends five
per cent. Congress, in a bill p-isse i prior to
adjournment on the 27 ih of July last, a
greed upon four and four and a halt per
cent., while by many three tier cent, lias
been held to be an amply sufficient return
for the investment. The general impression
as to the exorbitancy of the existing rate
of interest has led to an inquiry in the pub
lic mind respecting the consideration which
the Government has actually received tor its
bonds, and the conclusion is becoming prev
alent that the amount which it obtained was,
in real money, three or four hundred per
cent, less than the obligations which it is
sued in return. It cannot he denied that
we are paying tin extravagant per rentage
for the use of .he money borrowed, which
wai paper currency, greaxlv d ireeiare i lie
low the value of coin. This fact is made
apparent when we consider that U.nJiiold
ers receive from the Treasury, upon e-ich
dollar they own in Government securities,
six per cent, in gold, which is n -arly, or
quite, equal to nine per cent, in currency.
That the bonds are then convene I into cap
ital fur the National banks, upon which
those institutions issue their circulation,
bearing six pec cent, in ere?, an 1 fiat they
are exempt from taxation by the Govern
ment. and the Stares, and thereby enhanced
iwj percent, in tt e hand, of the holder--We
thus have an a.grg:ite of sevei teen per
cent, which may be received upon etch do!
lar hi' the owners of Government securities.
A system that produces such results is just
ly regarded as favoring a few at the expense
of the many, and has led to the further in
quiry whether our bondholders, in view of
the lame profits whieh they have enjoyed,
would themselves le avei-e to a settlement
of our indebtedness upon a plan whie!i would
yield them a fair remuneration, and at the
same time be ju-t io the taxpayers of the
nation. Our national credit should be sa
credly observed, but in mak'nitr ptovi-ion for
our creditors we should not forget what is
duo to the masses of the people If may be
assumed that, the hoi '.er f our securities
have already received uoop their bou Is a
larger amount than tin-it in-iuinal invest
ment, measured by a gold stan bird Upon
this statement of facts ir would become ju-f
and equitable that six per 'ent. interest now
paid by the Government sh i!d he applied
to the reductirn of the principal in semi
annual instalments, which in -ixteen years
and eieht months would liquidate the entire
national debt. Six per cent, in jtold would
at present rates be equal to nine per cent,
in currency, and eouivalent to the payment
of the debt one and a half times in a frae
tion less than seventeen years.
This in connection with all the other ad
vantages derived from their investment
would afford to the public creditors a fair
and liberal compensation for the ne of their
capital and with this they should be satisfied.
The lessons of the past admonish the lender
that it is not well to be over anxious in ex
acting from the borrower rigid oompliam-e
with the letter of the bond. If provision be
made for tbo payment of the indebtedness
of the Government in the manner suggested,
our nation will rapidly recover its wonted
prosperity lie Interest require that some meaa
are should be taken to release the large amount
of capital inrested in the securities of the Gov
ernment It is not now merely unprodactie,but
in taxation annually consumes one hundred and
fiftj millions of dollars which would otherwise
be used by our enterpriMng people in adding to
the wealth of the nation, ) :r Commerce, which
at one time successfully liralled that of the great
Maritime Powers, has rapidly diminished, and
our industrial interests are in a depressed and
languishing condition The development ol oar
inexhaustible resources is checked, and the fer
tile fields of the South are becomiig waste for
want of merns to vi 1 1 them. With the release of
capital, new life w(vtld be infused into the paral
ysed energies of our people, and activity and
vigor imparted to every branch of industry. Our
people need encouragement in their effort to re
cover from the effects of the rebellion and of in
judicious legislation. And it should be the aim
of tbeOorernment to stimulate them by the pros
pect of an early release from tbe burdens which
impede their prosperity If we cannot take the
burdens from their shoulders we should at least
manifest a willingness to help bear tbem. In re
ferring to tbe condition of the circulating me
dium. I shall merely reiterate substantially that
portion of my last annual message which relates
to that subject The proportion which tbecurren
ey of any country should bear to the whole value
of ibe aunual produ e circulated by its means is
a question upon which political economists have
not agreed. nor can it be controlled by legislation,
but must be left to 'he irrevocable laws which
everywhere regulate commerce and trade, 'foe
circulating me liutu will ever irresistably flow to
those fioinls where it is in greatest demand. Tbe
law of dem nd a d supply is as unerring as that
which regulates the tides of the oeen; and. in
deed, currency, like the tides, has its ebbs and
flows throughout the world At the beginning of
the rebellion the bank note circulation of tbe
eouuiry amounted to not more than two hundred
millions of doiUrs. Mow the circulation ot na
tional bank notes, and those known as legal ten
ders is nearly seven huu'lred millions while it
is urged bv some thut this amount should be in
creased, others contending that a decided reduc
tion is absolutely essential to the best interests of
tbe country Io view of these diverse opinions
it may be well to ascertain the real value ol our
paper i&aes when compared with a inetallio or
Convertible currency i-'orthis prnose let us in
quire how much g'll anl sdver cull be pur
chased for the seven hundred millions of paper
ouriency now in irulntion Probably not mora
than half tbe umount of the latter, showing that
when our i uper euriency is compared with god
and silver, its eommerciia utility is compressed
into three hundred and fifty millions. Tbisstri
king tnc mikes it the obvious duly of tho Gov
eminent, as e.uly as may te consistent with tbe
principles of sound politico, economy, to take
such mnasurti as will enable the hol ler of its
notes and those of the n itiona banks to convert
them without loss into specie or its equivalent. A
reduction of our paper circulating medium may
not necessarily follow. This, however, would
defend upon the law of demand and supply,
though it should be borne in mind that by making
legaltender and bank notes convertible intocoiu
or its equivalent, their present specie value, in
the nana of their hoMers, would be enhanced
one hundred per cent I egislation for the ac
compli -h merit of a result so desirub'e is demand
ed by the highest public considerations, lue
Constitution c r,ti :up a'es thai the circulat
ing uie-lium of tbe country sha I be uniform in
quit lity aud value. At the time of the formation
of th it instrument, the country had just emerg
ed from the warof rhe revolution, and w:is suffer
i tig from tbe effect' ot a redundant and worth
lesa p., per enrreney. The rages of that period
were anxious to protect their posterity from the
evil which they tiauiselves bad experienced. In
providing a circulating medium, they conferred
upon Congress the power to coin money and reg
ime the value thereof ; at the same time prohib
idngtbein from making anything but gold and
silver a tender in payment of debts. Tbe anom
nlouscon lition of our currency is in striking con
tract with that whijh was originally designed
"or circulation now embraces first, notes of tbe
National banxs which arc inttde receivable rr All
lues to the tl.'Verntnent excepting imports, and
all its creditors excepting in payment of interest
upon its bonds and the securities themselves;
second, legal tender notes, issued by the Uuited
.States, and which tbe law requires shall he re
ceived as well in payment of all debts between
citizens as of all Government dues, excepting im
ports ; and, third, gold and silver coin, liy the
operation of our present systen. of finance, bow
ever, tbe metalic currency when collected is re
served only for one class of government creditors,
who holding its bonds semi-annually receive
tbeir interest in coin from tbe National tieasury.
Tbere is no reason which will be accepted as sat
factory by tbe people why those who defend as
on the land and protect s on the sea; the pen
sioner upon the gratitude of the nation, bearing
tho scars and wounds received while in its ser
vice; the public servants in the various depart
ments of the It overnment ; the farmer who sup
p ics the soldiers of the army, and the sailors of
the uavy ; the ariisun who toils in tbe work
sbo . or th- mechanics and laborers who build
its edifices and construct its forts and vessels of
war. and in payment of their just and bard earn
ed dues receive depreciated papr. while another
class of their countrymen, no more deserving are
paid in coin of gold and silver. Fqual and exict
ju-tice requires that all creditors of the Uovern
menl should be paid in a currency possessing
uniform value. This can enly be accomplished
by the restoration of currency to the standard es
tablished by the Constitution, and by this means
we would remove a discrimination which may. if
it has not already done so.crcate a prejudice that
may become deep-rooted and wide spread, ana
imperil the national ereuit. The feasibility of
in ,ku g our currency correspond with tbe consti
tutional standard may be seen by a reference to a
few tacts derived from our commtreial staiistics
Tbe aggregate proiluoi of precious metals in tbe
I niied States fr- m lS4t) to 1S.07 amounted to
SI 174 Wild. nut), while for tbe same period the net
exports of specie were $741 t'uO.UOO. Thisshows
an excess of product over net exports of $133. (IB0.
fititl. There are in the Treasury S10.UH7 (Ha in
coin. In circulation, in the States on the Pacific
coast. Sn. 0l)i. (Jul), and a few millions in tbe na
tional and other b inks. in all less than oue hun
dred and sixty rat. lions. Taking into considera
tion the specie io tbe country prior to 1849, and
that produced since lst7- and we have more tbnn
bree hundred mtllious not accounted tor by ex
pollution or by tbe returns of tbe Treasury, and.
ineiciore, must pruoautjr ivu,,ii,mk; hi iuo guuu
I try These are important facts, aud snow bow
I omp etely the inferior currency will supercede
the better forcing it from circulation among the
musses eausing i' to bs exported as a mere article
i f tiaiie. toartd to the inony capital of foreign
lands They show the neces-i-y of retiring our
j p i'it money that the return of gold and stiver to
; in avenues of trade inny be invite 1 and a de
mand created which will cause tbe retention at
home of at l v-t so union of the productions of
our rich and inexhaustible gold i,eann fields
that may be sufficient for purposes of ciiculation
It is unreasonable to expect return to a sound
currency as ong as the Government and banks
continue to issue irredeemable notes, and fill the
channels of circulation with depreciated paper.
Notwithstanding a coinage by oar mints sinoe
1st 3 of eight hundred and seventy four millions
of dollars Tbe people are now strangers to tbo
currency which was designed for their uses and
benefit. and specitnensof precious metals, bearing
the n itiona! device are seldom seen except when
produced to gratify the interest excited by their
novelty If depreciated paper is to beenntinued
as permanent currency of iheeoun'.ry. and all our
coin is to become a mere article of traffic and
specula-ion to the enhancement of the price of
all that s indispensable to the comfort of tbe
people, it will be wise economy to abo'ish oor
minis thus siviuj the Nation the care and ex
pense inijnt to :uch establishments, and let all
our precious metals be exported in bullion Tbe
time bus come however, when the Government
and Na'iomil Hanks should be required -to take
the mut efficient s'eps and make all necessary
arrangements for the resumption of specie pay
ments. Let specie payments once be earnestly
inaugurated bv the Government and banks, and
tbe value of the paper circulation would directly
approximate af specie atanJard. Specie payments
having been resumed by tbe Government and
banks, all notes or bills of paper issued by either,
of less denomination than twenty dollars. should.
by law. be exduued from circulation so that the
peope may bave tbe benefit and convenience of a
gon aud si ver currency, wnicn, in ail ttieir bu
siness transactions wi be uniform in vaue at
home and abroad Lvery man ol property and
industry, every man who desires to preserve what
be bnnesty possesses, or to obtain what he can
hone-tv earn.bas a dircot interest in maintaining
a safe oireu'ating medium sueh a medium as
inuf be rea and substantial not Hahfe to vi
brate with oninions not sunject to be bown op
or bown down by the breath of specuation but
ta ot matte ttatut ana aware. & aisoraereo
enrreney is one of the greatest political evig It
undermines the virtues necessary for the support
of the social system, and encourages propensities
destructive of its happiness It wars against in
dustry frugality and economy, and it fosters the
evii spirits of extravagance and speculation. It
has been asserted by one ot our profound and
most gifted statesmen that of all the contrivances
for cheating tbe laboring el asses of man kind. none
has been more effectual than that which deudes
them with paper money. This is the most effee
tna of inventions to fertilise tbe rich man's
fie'ds by tbe sweat of the poor man's blow. Or
dinary tyranny, oppression, excessive taxation
these bear ightiy on the happiness of tbe mass of
the community, compared with af auduentcur
rency and the robberies committed by deprecia
ted paper Our own history has recorded for onr
instruction enough, and more than Lnougb of the
demoraiiing tendency, tbe injustice, and the in
toerabe oppression on the virtuous and we
dssposed. of a degraded paper cutreney. author
ised by aw. or any way countenanced by the
Government It is one of tbe most suceessfuY
devices in times of peace or war, of expansions
or revnsions. to accompish tbe transfer of n
the precious metas from tbe great mass of the
people into tbe hands of tbe few. where they are
hoarded in secret p.'aces or deposited under b Vts
and bars, while the peope are eft to endure tJI
tbe inconveniences, sacrifices and demoraiiation
resuting from the Use of depreciated aud wotth-
ess peper
TheSec"Cta-y of the Interior in his re
port, gives valuable information in reference
to the interest confiled to the supervision
of his Department, and reviews the oper
ations ot the Jtn'i (J.fic-e, Pension O.'hce,
Patent Office and the Indian Bureau. Dur
ing the fiscal year ending June 30th, 1S0S,
six millions six hundred and fifty-five thou
gand seven hundred acres of public lands
were disposed of. The entire c.ish receipts
of t he General Land office 'or the same pe
riod were I.C32, 4o ; being greater by
$21,883 than the amount realized from the
same sources duru g the pieviuus year.
The entries under the Homeste.id law cover
two million three hundred and tnentv-eight
thousand nine hundred and twenty three
acres, nearly one fourth of which was taken
under the act of Junde 21st, 1SG6, which
applies only to the States of Alabama. Mis
sissippi, Louisiana, Arkansas and Florida.
On the 30th of June, 1S0:S, one hundred
and sixty-nine thousand, six hundied and
f-irty-three names were Lome uu the pension
rolls, and during the year ending on that
day, the total amount paid for pensions, in
cluding the expenses for disbursements, was
$24,010,882, being $5,391,025 greater than
that expended for like puposes during tbe
preceding year. During the year ending
the 30th of September last, the expenses of
the Patent Ollice exceeded the receipts by
one hundred and seventy one dollars, and
including re issues and dc:;rns, fourteen
thousand one hundred and fifty three pit
ents, were issued. Treaties with vari us In
dian tribes have been concluded, and will
be submitted to the Senate for its Constitu
tional action.
I sanction the stipulations which provide
for reserving lands tor the various tribes,
where they may be encouraged to abandon
their nomadic lial its, and eiifrairp in agricul
tural and industrial pursuits. This policy.
inaugurated many years sinceiias niuLj
signal success whenever it has been pursued
in good faith and with becoming liberality
by the United States. The necessity for
extendind it as far as practicable in our re
lations with the abariginal population is
greater now than at any preceding period.
Whilst we furnish subsistance and instruc
tions to the Indians and guarantee the un
disturbed enjoyment of their treaty rights,
we should habitually insist upon the faith
ful observance of their agreement to remain
within their respective reservations. This
is i he only m'"do by which these coilis.sions
with other tribes and with the whites can be
avoided, and the safety of our frontier set
tlements secured. The companies con
structing the railway from Omaha to Sacra
mento have been most energetically engag
ed in prosecuting the work, and it is believ
ed that the line will be completed before
the expiration of tbe next fiscal year. The
six per cent, bonds issued these companies
amounted on the fifth instant to $44,337,
000, and addition-tl work had been perform
ed to the extent of $3,200,000. The Sec
retary of the Interior in August last. invited
my attention to the report of a Director of
the Union Pacific Railroad Company, who
had lieen specially instructed to examine
the loca'ion, construction and equipment of
their road, and submitted for tbe opinion of
the Attorney General certain questions in
regard to the authority of the Executive,
which arose upon this report, and thoc
which had from time to time been present
ed by the Commissioners appointed to ex
amine this and other lines, and have recent
ly submitted a statement of their investiga
tions, of which the report of Secretary of
the Interior furnish special information.
The report of the Secretary of War con
tains information of interest respecting the
several Bureaus of the War Department,
and the operations of the army. The
strength of our military force on tbe 30th of
September last, was 4S,000 men. and it is
computed that this number will be decreas
ed to 43,000. It is the opinion ot the Sec
retary of War. that within the next year a
considerable dimiuitioti of the Infantry force
may be made without detriment to the in
terest of the country, and in view of the
great expense attendinc the military estab.
Iishments and the absolute necessity of re
trenchment, wherever it can be applied, it
is hoped that Congress will sanction the
rcditut ion which his report recommends.
While in J800, sixt en thousand three bun
died men cost the nation $16,472,000. The
sum of $65,682,000 is estimated as necessary
tor the support of Army during the fiscal
year, ending June the 30th.l870. The esti
mates of War debt, for the last two fiscal
years, were for 1867, $33,814,461, and for
1868, $25,205,609. The actual expendi
tures durin? the same periods were respec
tively, $95,224,415 and $123,246,648. The
estimate submitted in December lat, for
the fiscal year en ling June 30lh. 1S69, was
$77,124,707. The expenditures for the
first quarter, eiidme the 30th. of Septem
berlast, were $27.219,1 17, and the Secre
tary of the Treasury gives $66,000,000 as
the amount which will probably be required
during the remaining three quarters.if there
should be no reduction of the Army, mak
ing its aggregate cost for the year consider
ably in excess of ninety three millions. The
difference between the estimates and expen
ditures, for tbe three fiscal years which
have been named, is thus shown to be $175,
545,343 for this single branch of public
& r v i cc
The report of tbe Secretary of tbe Navy
exhibits the operations of that departmen"
and of the Navy during the year. A con
siderable reduction of the force has been ef
fected. There are forty-two vessels carrying
four hundred and eleven guns in the six
squadrons which are established in different
parts ot the world. Three of these vessels
ore returning to the United States and four
are used as store ships, leaving the actual
cruisin force thirtv-Sve vessels, carrying
three hundred and fifty-six gun. The to
tal number of vessels in the Navy is two
hundred and six, mounting seventeen hun
dred and forty-three gnn. Kighty-mre ves
sels of every description arc in use, armed
with six hundred ami ninety-six guns. The
number ot enlisted men in the service, in
cluding apprentices, has been reduced to
eight thousand five hut drcd. An increase
of navy yard facilities is recommended as a
measure which will, in the event of war, be
promotive of economy and security. A
more thorough and systcmaticsurvey of the
North Pacific Ocean is advised, in view of
our recent acquisitions, our expanding com
merce, and the increasing intercourse be
the Pacific States and Asia. The Naval
Pension Fund, which consists of moiety of
the avails of prizes captured during the war
amounts to $14,000,000.
Exception is taken to the act of 23d July
last, which reduces the interest on the fund
loaned to the Government by the Secretary
as trustee, to three per cent., instead of six
per cent.., which was orig nally stipulated
when the investment was made. An amen I
ment of the Pension laws is suggested to
remedy omissions and defects in existing en
actmcnts. The expenditures of the depart
ment during the last deal year were $20,
120.394, and the estimates for the coming
year puiount to $20,993,414. The postmas
ter general's report furnishes a full and
clear exhibit of theopcrations and condition
of the jtostal service. The ordinary postal
revenue for the fiscal year ending June 30th,
1868, was $16,292,600, and the total expen
ditures, embracing all the servic : for which
special appropriations have been made by
Conjrress, amounting to $22,730.592,' show
ing an exoess of expenditures of $6,437,991,
deducting from th2 expenditures the sum
of $1,896,525. The a-rwunt of appropria
tions for ocean, steamship and other sie
rial services, the excess of expenditures was
$4,541,466. By ustng an unexpended bal
ance in the Treasury ot $3.800.(M KUhe actu
al sum for which a special appropriation is
required to meet the deficiency, is $741.,
466. The causes which produced this large
excess of expenditure over revciuc, were
the restoration ot service in the late insur
gent Slates, and the putting into operation
of tbe new service established by acts of
Congress, which amou .te 1 within the last
two years and a hait to a'jout forty eiuht
thousand seven hundred miles, equal to
more than one-third of the whole amount of
the service at the close of the war. New
postal conventions with Great Uritain.North
Germany, Belgium, the Netherlands.Switz
erland. and Italy, respectively, have been
carried into effect under their provisions ;
important improvements have resulted in
the reduced rates, of international postage,
and the enlarged mail facilities with Euro
p;nn countries. The cott of the United
States trans-Atlantic Ojoia mail service,
since January 1st, 1868, has been largely
lessened under the operation of these new
conventions; a reduction of over oue half
having been effected undertbe new arrange
ment for Ocean mail steamship service,
which went into effect on that date. The
attention of Congress is invited to the prac
tical suggestions and rworomendat ions made
in bis report, by the Postmaster General.
No important question has occurred du
ring the last year in our accustomed cordial
and friendly intercourse with Costa Hica,
Guatamala, Ilonduras,San-alvador, France,
Austria, Belgium. Switzerland, Portugal,
the Netherlands, Denmark. Sweden, and
Norway, Home, Greece, Turkey. Persia
Egypt, L:beria, M iroeco, Topuli, Tunis,
Mu-ca?, Siam, Borneo, and Madagascar.
Cordial relations have also been :;iainUiined
with the Argotiline and the Oriental Repub
lic. The expressed wish of Congress that
our national good offices might bo tendered
to those Republics, and also to Brazil and
Paraguay, for bunging to an end thecontin
ous war which has so lonj been raging in
the Valley of the La Plata, has been assid
uously complied with, and fully acknowl
edge by all the belli 'erents. That impor
tant negotiation, howcv.ir, has thus far been
without result. Charles A. Washburn, late
U. S. Minister to Paraguay having resigned,
and being desirous to return to the United
States, the Rear Admiral commanding the
South Atlantic Squadron was early directed
to send a ship of war to Asuncion, the cap
ital of Paraguay, to receive Mr. Washbnrn,
and his lamily, aud remove them from a
situation which was represented to be en
dangered by faction and foreign war. The
Brazilian commander of the allied invading
forces refused permission to the Wasp to
pass through the blockading forces, an l that
vessel returned to its accustomed anchorage,
remonstrance having been nude against the
refusal. It was promptly overruled, and
the Wasp therefoie resumed her errand, re
ceived Mr. Washburu and family, and con
veyed them to a safe and coiiveiiieut seaport.
Io the meantime au exoited controversy had
arisen between the President of Paraguay
and the late United States Minister, which
it is understood grew out of his proceedings
in giving asjluui in the United States lega
tion to alleged enemies of that Republic.
The questiou ol the right to give asylum is
one always difficult and often productive
of great embarrassment in States well organ
ized and established. Foreign powers re
fu.se either to coucede or exercise that right
except as to persons actually belonging to
tbe Diplomatic service. Ou the other baud
all such powers insist upm exer. ising the
light of asylum iu States where the law of
nations is not fully acknowledge, respected
aud obeyed. The President ot Paraguay is
understood to bave been opposed to Mr.
Wa-shburue's proceedings, owing to the in
jurious and very improbable charge of per
sonal complicity iu insurrection aitd treason.
The correspondence, however, has not reach
ed the United States. Mr. Washburne.in
connection with this controversy, represents
that two United Stales citizens attached to
the legation were arbitrarily seized at ins
side when leaving the capital of Paraguay,
committee to prison, aud there subjected
to torture for tbe purpose of procuring con
fessions ol their own criminality, and testi
mony to support the President's allegations
against the United States Minister.
Mr. M'Mahon, the newly appointed Min
ister to Paraguay, saying that heliad reach
ed the La Plata, has been instructed to pro
ceed without delay to Asuncion, there to
investigate the whole stibject. The Rear
Admiral, commanding the (J. States South
Atlantic Squadron, has been directed to at
tend the new Minister with a proper, naval
force, and to sustain such just demands as
the occasion may require, and to vindicate
the rights of th3 United States citixens re
ferred to, and of any others who may be ex
posed to danger ir. the theatre of war. With
these except.ions.friend!y relations have been
maintained between the United Stales and
Brazil and Paraguay. Our relations during
the past year with Bolivia, Eucador, Peru
and Pliili Imve become especially friendly
and cordial. Spain and the Republics of
Peru, Bolivia and Eucador hare expressea
their williueoess to accept tbe mediations of
tho TTi.irod HrsfM tor term matin tue war
upon the south Pacific coast. Chili has not
' finally declared upon the question. In the
meantime the conflict has practically exhaus
ted itself, si fire no bclligerant and hostile
movement has been made bv either party
during the last iwo years, and there are do
indications of a present purpose to resume
hostilities on either Side. Great Britain and
France have cordially seconded our proposi
tions of mediation, and I do not forego the
hope thai it may soon be accepted' by ait the
belligeiants, mid lead to a secure establish
ment of peace and friendly relations between
the Spanish American Republics of the Pa
cific ami Spain a result which would be
attended with eomtnon benefits to the bel
ligerents, and much advantage to all com
mercial nations. I communicate for the
consideration of Congress a correspondence
which shows that the Bolivian Republic has
established the extremely liberal principle
of receiving into its citizenship any citizen
of the United States, or of any other of the
American Republics, upon a simple condi
tion of voluntary registry. The correrpon
dence herewith submitted will be found
painfully replete with accounts of the ruin
and wretchedness produced by recent earth
quakes of unparalleled severity in the lie
publics of Pe u, Eucador and Bolivia. The
diplomatic agency ami naval officers of the
U. States who were present in these coun
tries at the tiuieqf these disasters, furnished
all the relief in their power to the sufferers,
and were promptly rewarded with grateful
aud touching acknowledgments by the Con
gress of Peru. An appeal to the charity ot
our fellow citizens has been answered by
much liberality. In this connection 1 sub
mit an appeal which has been made by the
Swiss Republic, whose government and in
stiiutionc srs kindred to our own, ia hehalf
of its inhabitant.s.who are sufferiug extreme
destitution, produced by recent inundations.
Cur relations with Mexico during the year
have been marked by an increasing growth
of mutual confidence. The Mexican gov
ernment has not yet acted upon tbe treaties
celebrated here last summer, for establish
ing the rights of naturalized citizens upon a
liberal and just basis, for regulating Consular
powers, and for ths adjustment of mutual
claims. All commercial nations, as well as
-ill friends of Republican institutions, have
occasion to regret the frequent local disturb
ances which otvur in some of tbe constitu
ent States of Columbia. Nothing hss oc
curred, however, to affect the harmony and
cordial friendship which have for several
years existed betweeu that youthful and
vigoruoas Republic, and our own. Negoti
ations are pending with a view to a survey
and construction of a ship canal across the
Isthmus of Darien, uu ler the auspices of
the United States. 1 hope to be able to
submit the result of that negotiation to tbe
Senate during its present session. The very
liberal treaty wl ich was entered into last
year by the United States and Nicarauga,"
has been ratified by tho latter liepubfic.
Costa Kico, with the earnestness of a sin
cerely friendly neighbor, solicits reciprocity
of trade, which I commend to tbe considera
tion ot Congress. Tbe convention created
by treaty between the United States and
Venezuela, in July, 1865, forthe mutual
adjustment of claims, has been held, audits
dv-cisionx have been received at the Depart
ment of State. The heretofore recognized
Government of the United States of Vene
zuela has Leen eubvcrted,a Provisional Gov
ernment having been instituted, under cir
cumstances which promise durability. It
lias been formally recognized. I have been
reluctantly obliged to ask explanation and
satisfaction for national injuries committed
by the President of Ilayti. The political -and
social condition ot the Republics of
Ilayti and St. Domingo are very unsatisfac
tory and painful. The abolition of slavery,
which has been carried into effect through
out the Island of St. Domingo and the en
tire West Indies, except the Spanish islands
of Cuba and Porto Rico, has been followed
by a profound iwipuiar conviction of the
rightfulness of U publican institutions, and
an intense desire to secure them. The at
tempt, however, to establish Republics tbere
encounters many obstacles, most of which
may be supposed to result from long indulg
ed habits ot colonial tupineness aud depen
dence upon European powers.
While the United States have on all occa
sions professed a decided unwillingness that
any part ol this continent or of the adjacent
islands shall be made a theatre for a new es
tablishment of monarchial power, too little
lias b en done by us on the other hand to
attach the communities by which we are sur
rounded to our own country, or to lend even
a moral support to the efforts they are so
resolutely and no constantly making to secure
republican institutions for themselves. It
is indeed a question of grave consideration
whether our recent and present example is
not calculated to check the growth and ex
pansion of free principles, and make these
communities distrust if not dread a Gov
ernment which at will consigns to military
domination States that are integral parts of
our Federal Union, and while ready to re
sist any attempt by other nations to extend
to this hemisphere the mouarchial institu
tions of Europe, afsnmes to establish over
a large portion of its people a rule more ab
solute, harsh and tyrauical than any known
to civilized powers.
The acquisition of Alaska was made with
the vieW of extending tbe national jurisdic
tion and republican principles in the Anier
icao Hemisphere. Believing that a further
step could be ukeu iu the same direction, I
last year entered into a treaty with the King
of Denmark tor tbe purchase of tbe Islands
of St Thomas and St John, on the best
terms then attainable, and with the express
consent of the people of those Islands.
Tills treaty still remains under consideration
in the Senate. A new convention has been
entered into with Denmark, enlarging the
time fixed for tbo hnai rauueauon oi tne
original treaty. Comprehensive National
policy would to sanction the acquisition
and incorporation into our Federal Union,
ot tbe several adjacent continental and in
sular communities, as speedily as it cod be
done peacefully, lawfully aud without any
violation of national justice, taith or honor.
Foreign possession or control of those com
munities has hitherto rendered the growth
and impaired the influence of the United
States. Chronic revolution and anarchy
there would be equally injurious. Each one
of them when firmly established as an inde
pendent Republic, or when incorporated
into the United States would be new
source of strength and power. Conform
ing my administration to these principles, I
have on no occasion lent support or tolera
tion to unlawful expeditions set on foot
upon tho plea of republican propagandistn
or of national extension or agrandizement '
The necessity, however, of repressing sueh
unlawful movements clearly indicates tho
duty which rests upon na of adapting onr
legislative action to the new circumstances
or tbe decline of European monarchical
power and influence and tbe increase of;
American republican irletra, interest and
sympathies. It cannot be Jong before it will
cosclcmo o rornta os.
ni