VOLUME k >. The President's Message. Frllon fltizonM of tin* Senato rtiid llosixi' ol'ltopriMi niiUivos: Again the blessings of lie:il(h aud abuii Jaiit harvests claim our profound grati tude to Almighty God. The condition our 112 coign affairs is remarkably ,satisfact"iy Mexico contin ues to he a theatre n!' civil war. While our political relations w' h that country hare undergnne no (hinge, we have at tha same time strictly maintained neu trality between (lie belllgerants. At the request of llie States ef Costa Rica and Nicaragua a competent engineer has been authorized to make a survey of the river San J'tan and the port of Sun Juan It is « source of much satisfac tion that the difficulties, which tor a mo ment excited some political ajl any kiud have arisen with any ot these ilcpublies, and on the other hand their sympathies with the Uuitud States are Con aliily expressed. claim ar .- u.: from tit'- e.zare 01' thu cargo of the I»r.i I'vlou.i. n l v ol. has been : ii I in lull •> ;w\c.nuiei; oft hih. Ihe difficulty with he >"in;*h ; eoast ol San ibnyiugo ■ p .vntiy with mi. any piospoct •« .oi .:y <. -. Oth ei ii c . re.-, o ten ■ ■ i•»- ' 'pen ed with l.ibofi i.and it .-v." u> a pleas ing viewot the >t:i :ti mi political condi tion of that Republic. It is expected to derive new vigor trom American inHu ence. improved by the rapid disappear ance of slavery in the tailed States. I solicit your authority to furnish the Republic a gunboat at a moderate cost, to be reimbursed to the United .States by in stalments. Sueh a vessel is needed for the safety of that State against the Afri can race, and it would be more ellective in arresting the African slave trade that; a squadron in our own bauds. The possession ot the least organized naval force should stimulate a generous ambition in the Republic, and the confi deuce which we should manifest by fur Dishing it would win favor and forbear ance tovvarils the colony from all civilized nations. The proposed overland telegraph be tween America and Europe,'»by way of liehring's Straits and Asiatic Rus.-ia. which was sanctioned by < rit ain and Uus.ua. Assurances have been received frouiQiost ot' the South American States of their high appreciation' of the enterprise and their readiness to eo-4|P;r ate in constructing lines tributary to this world-encircling communication. I learn with much satisfaction that the noble design of a telegraphic communi cation between the eastern coast of Amer ica and Great Britain, has ..ecu renewed with full expectation of its early accom plishment. Ihus it is bo,ed that with the return of domestic peace, the couutry will be able to resume .vitli energy and advantage her former high career of com merce and civilization. Our very popular*aud estimable repre sentative in Egypt, died in April last. An unpleasant aLereaiiou which arose be tween ths temporary incuuibeut ot the office aud the government ui the I'acha, AMERICAN CITIZEN. resulted in a suspension of intercourse. The difficulty was promptly settled on the arrival of his successor in the consul ate. and our relations with Kgypt, as well as the relations with the Uarbary powers, are entirely satisfactory. The rebellion which has so long been flagrant in China, has at.last been sup pressed with the co-operating good offices of this government, aud of the other com mercial States. The Judicial Consular establishment has become very difficult and onerous, and it will need legislative action to adapt it to the extension of our commerce and to the more intimate intercourse which has beeu instituted with the gov ernment an expect that witii tko ap- "Let us have Faith that Right makes Might; and in that Faith let ns, to the end,dare to do our duty as we understand it"— LINCOIN. BUTLER, BUTLER COUNTY, PA., WEDNESDAY, DECEMBER 14, 1864. provnl of the Imperial Government, they will take the necessary measures to pre vent new incursions across the border. The act passed at the last BOSS on for the encouragement of immigration has, as far as was possible, been put into opera tion. It seems to need an amendment which will enable the officers of the gov ernment to prevent the practice of frauds against the immigrants while on their w ly. and on their arrival in the ports, so as to secure them hero a free choice of avocations and places of settlement. X liberal disposition towards this great na tional policy is manifested by most »112 the European States, and it ought to be recip rocated. on our part, by giving the immi grants effective national protection. 1 re gard our immigrants as one of the princi pal replenishing streams which are ap pointed by Providence to repair the rava ges ■ 4 internal war and its wastes of na tional strength and health. All that is necessary is to secure the flow ot that stream iu its present fullness, and to that end the government, must in every way, make it manifest that it nei ther needs or designs to impose involun tary military sci vice upon those who come from other lands to cast their lot iu our country. The financial affairs of the government have been successfully administered dur ing the last year. The legislation of the last session or Congress has beneficially affected the revenue, although sufficient time has not yet elapsed to experience the full effect of several of the provision* ot the acts of C ingres imposing iucreased taxation. The receipt during the year, fr. ni till sources, upon the basis of warrants signed by the Secretary of the Treasury, includ ing loans, and the balance in the treasury 011 the first day of July. 1803, were 91,- 394,790,0' 7 02; and the aggregate dis bursements upon the same basis, were j 81,2tt5,050.1nl vt—leaving a balance iu j the treasitij. as shown by warrants, of j $90,739,9' •> 73. Deduct from these j ifluouuts the amount of the principal of i the public debt redeemed, and the amount j of issues in substitution thorwl'or, aud the | actual operations of thu treasury were : receipts fcv 1 "70.010 *7; disbursement*, J 8851,281. <7 Sj— which leaves a cash | balance in flu trc.isuary of 81*,842,5-)8 j 71. Of receipt •, there wero ik. Ed from customs. 5? I '2,310.152 99; frosu .i n-J . 5 V X,29 ; from direct t,.xe-, $17").0 < • it;'); from intoinal Revenue, S 109.741.1-11 I lit; from nitsc llaiieous s;urces.-$ 17,511, Ho 10; and I'.viu loans applied to ac tual expenditure's, including the former balance, 111. I here were d-burscd for the civil ser vice 8J7.-I >.). ' •!» iii ; tor pensions kiid iudiaua. 9.547.930 97; for the War De piiiiucnt, 50.791.512 5*71 for the Navy Department. £ v 5,7-«i,292 79; tor inter est of the public debt, $53,685,421 09— making an and leaving a halaucc iu she treasury of 515,*42,558 71, as before stated, for the actual receipt; und disbursements for the first quarter, and the estimated receipts and disbursements for the three remain ing quarters of the current fiscal year. For the general operations of the treas ury iu detail, I refer you to the report of tho Secretary ot the Treasury. I concur with him in the opinion that the propor tion of the moneys reqirtred to meet the cxpen-es consequent upon the war, de r.ved from taxation, should be still fur ther increased, and 1 earnestly invite your attention ?■. this subject, to the end that there may he such additional legis lation as shall be required to meet the just expectations of the Secretary. The public debt on the first day of July last, as appear* by the books of the Treasury, auiou&te l to one billion seven hundred an i forty millions six huudred and ninety thousand four hundred aud eighty-nine dollars and forty-nine cents. Probably, should the war continue tor another year, that amount may bo increased by not far fr an five hundred millions. Ilcld as it is for the most part by our own people, it lias become a substantial brauch of na tional, though private proiierty. l-'or obvious reasons, the more nearly this property can be distributed among all the poople. the better. To favor such general distribution, greater inducements to become owners might, perhaps, with good effect and without injury, bo presen ted to persons of limited means. With this view 1 suggest whether it might not be bull expedient and competent for Con gress to provido that a limited amount of some future issue of public securities might be held by any bona fide purchaser ex«ipt from taxation, and from seizure for debt, under such instructions and lim itat on .is might be necessary to guard avaiusi the abuse of so important a priv ' ilege. Thia would enable prudent per i sous to lay ajoJo a ?mad uuuuity agaiutt a possible day of want. Privileges like these would render the possession of such securities to the amount limited, most de sirable to every person of small means wl»j'might be able to save enough for the purpose. The great advantage of citi wms being creditors as well as debtors with relation to the public debt, is obvi ous. Meu readily perceive that they can not be much opprassed by a debt which they owe to themselves. The public debt on the first day of Ju ly last. although soitiewhat exceeding the estimate of the Secretary of the Treasu ry. made to Congress) at the commence ment of last session, falls short of the es timate of that officer made in the proceed ing December, as to its probable amount at the beginning of.this year, by the sum of *3,895,079,33. This fact exhibits a satisfactory condition and conduct of the operationsof the Treasury. The National Banking system is prov ing to be acceptable to capitalists and to people. On the 25th of November, five hundred and eighty-four national banks had beeu organised, a considerable num ber of which were conversions from State banks' Changes from the State system to the national system arc rapidly taking place, and it is hoped that very soon thvre w ill be in the United States no bauk of issue not authorized by Congress, and no bank note circulation uot secured by the Government. That the Government and the people will derive general benefit from the change in the banking systems of the couutry, can hardly bequestiimed. 1 he national system will create a reliable and permanent influence in support of the national credit, aud protect the peo ple against losses iu the use of paper money. Whether or uot any further legislation is advisable for the suppressiau of State bauk issues it will be for Congress to de termine. It seems quite clear that tho 'treasury cannot be satisfactorily conduc ted unless the government can exercise a restraining power over the bauk note oir culatiuu of the country. The report of tho Secretary of War, aud the accompanying documents, will de tail the campaigns of the armies in the field, since the date of the last auuual 'message, and also the operations of tho several administration bureaus of the W;ir cpaitmeut during the last year. It w ill also specify the measures deemed es , iitial for tho national defense, aud to keep up and supply the requisite military foreo. The report of the Secretary of tlio Navy piesents i comprehensive aud satis tory exhibit of the affairs of that Depart ment aud of the naval service. It is a subject of congratulation aud laudable pride to our countrymen, that a navy of such vast proportions has been organized in so brief a period aud conducted with so much efficiency aud success. The goueral exhibit of the navy, including vessels under construction, on the Ist of December, 1804, shows a total of six hundred and seventy-one vessels, carrying 4,619 guns, and 510,390 ions; being an actual increase during the year, over eighty-three vessels, one hundred and sixty seven guns, and 42,-127 tons. The total number of meu at this time in the naval service, including officers, is about 51,000. There have beeu captured by the Navy, during the year, 321 ves sels; and the whole number of naval cap tures since hostilities commenced is 1300, of which number 267 arc steamers. The gross proceeds arising from the salo of condemned prize property, thus reported, amount to ? 14.300,250,51. A large amount of such proceeds is still under adjudication and yet to be reported. The total expenditure of tho Navy De partment of every description, including tho cost of the immense squadrons that have been called into existence from the 4th of March 1861, to the Ist of Novem ber 1864, are $238,647,262 35. lour favorable consideration is invit'ed to the various recommendations of the Secre tary of the Navy, especially in regard to a navy yard and suitable establishment for the construction and repair of iron vessels, and the machinery and armature for our ships, to which reference was made in my last annual message. Your attention is also invited to the views expressed in the report in relation to the legislation of Congress at its last Session, in respect to prizes on our inland waters. 1 cordially concur in the recommenda tion of the Secretajy as to the propriety of creating the new rank of Vice Admi ral in our nuval Rervice. Your attention is invited to the report of the Postmaster General, for a detailed account of the operations and financial condition of the Post office Department. The Postal revenues, for the year end ing Juue 30th, 1804, amounted to 512,- 044,780 20, the excess of expenditures over receipts being 8200,052 42. The views presented by the Postmaster General on the subject of special grants by the Government in aid of the estab lishment of new lines of ooean mail steamships, and the policy he recommend ed for the development of increased com mercial intercourse with adjacent and neighboring countries should receive the careful consideration of Congress. It is ot noteworthy interest that the steady expansion of population, improvement and governmental institutions over the new aud unoccupied portions of our couu try have scarcely beeu checked, much less impeded or destroyed, by our great civil war which, at first glance, would seem to have absorbed almost the entire energies of the nation. The organization and admission of the State of Nevada has been completed in conformity with the law, and thus our ex cellent system is firmly established in the mountains which ouee seemed a barren aud uninhabitable waste, betweeu the Atlantic States and those which have grown up on the coast of the Pacific Occaa. The territories of the United Statss are generally in a condition of prosperity aud rapid growth. Idaho and Moutauo, by reason of their great distance aud the in terruption of communication with them by Indian hostilities, have been ouly tially organized ; but it is understood that these difficulties are about to disap pear which will permit their goverumeuts, like those of others, to.go into speedy and full operation, as intimately connec ted with, and promotive of this maternal growth of the nation. I ask the atteutiou of Congress to the Valuable information aud iuiportaut rec ommendations relating io the public lands aud Indiau affairs, the Pacific Railroad, aud mineral discoveries contained iu the lie-port of tlio Secretary of the Interior, which is herewith transmitted, aud which report also embraces the subject of pat ents, peusions and other topics of public interest pertaining to his department, The quauti'y of public land disposed of during the five quarters endiug on the 30th of September last, was 1,221,342 acres, of which 1,538,614 acres were en tered under the Homestead law. The remainder was located with military land warrants and agricultural scrip certified to by the State for railroads aud sold for cash. Tlio cash received from sales aud loca tion fees was 81,019,415. The income from sales during the fiscal year endiug J tine 30th, 1801. wa; $67,800,721 against >113,007.705 recurved during the proceed ing year. The aggregate of acres surveyed du ring the year lias been equal to the quan tity disposed of, aud there is open to set tlement about 133,000,000 acres ot sur veyed laud. The great enterprise of «ou uectiug the Atlantic with the Pacific States by railways and telegraph liues has been entered upon with a vigor that gives as.-uranco of success, notwithstanding the embarrassment arising from the prevail ing high prices of material and labor. The liberal provisions to invalid sold iers and sailors of the Ropublio, and to the widows aud orphans and dependent mothers of those who have fallen iu bat tle or died of diseases contracted, or of wounds received iu the service of their country, have been diligently adminis tered. The route of the road has been defi nitely located for one hundred miles Westward from the initial point at Omaha eitv, Nebraska' and a preliminary location of the Pacific Railroad of California has been made from Sacramento Eastward to the Great Bend of Mucker River in Ne vada. Numerous discoveries of gold, silver aud cinnabar mines, have been ad ded to the many heretofore known, and *he country occupied by the Sierra Neva da and Rocky Mountains, and the subor dinate ranges, now teems with enterpri sing labor which is richly remunerated. It is believed that the products of the mines of precious metals in that region, has during the year reached, if not ex ceeding $1U0,000,000 in value. It was recommended in my last annual message, that our Indian system be re modeled. Congress at its last sessiou, acting upon the recommendation, did pro vide for reorganizing the system in Cali fornia, and it is believed that under the present organization the management of the Indians there will be*ttenn to the proper meas ures and the best uiodo of advancing the Union cause; but iu tho distinct issue of Uuiou, or no Uuiou, the politicians have shown their instinctive knowledgo that theie is uodiversity among the people. Iu awarding the people a fair opportunity of showing one to another, and to the world, this firmness and uunuimity of purpose, tho election has bceu of vast value to tha national cause. The election has exhibi ted another fact uot less valuable to be known—the fact that we do not approach exhaustion in the most important branch of the national resources, that of living men. While it is melanoholy to reflect that the vrar has filled so many graves and caused mourning to so many homes, it-is some relief to know that, compared with the surviving, the fallen have been few. Whola corps, and divisions, and brigades, and regiments, hava formed and fought, an 1 dwindled and gone out of existence. Still a great majority of tbe men who cumposed them, are still living. Tbe same is true of the naval service. The election returns prove this. So many vo» ters cou'.d not else bo found. The states regularly holding election Is both now and four years ago, to wit: California, Con necticut, Delaware, Illinois. Indiana, lowa Kentucky, Maine, Maryland, Massachu setts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio Oregon, Pennsylvania, Rhode Island, Vermont, West Virginia, and Wisconsin, cast 3,9-<2,011 votes now against 3,870,- 222 oast then, -bowing tin aggregate now of 2,898,211, to which is to be added 33,702, cast now in the States of Kansas and Neva !a, which States did not vote-in 1860, thus swelling the aggregate to 4,- 075,778, and the net increase during the three years and a half of war to 115,751. A table i.; appended, showing the partic ulars. To this again should be added the number of soldiers in the Geld from Massa chusetts, llhodo Island, New Jersey, I>olawarc, Indiana, Illinois and California, who, by tho law of those States, could not vote away from their homes, aud which number cannot be less than ninety thous and. Nor yet is this all. The number in organized territories is iriplo now to what it was four years ago ; while thous ands, white and black, join us as the na tional arms press back the insurgent lines. So much iti shown affirmatively and nega tively by tho eleotioa. It is not material to enquire how the increase has been pro duced, or to show that it would have been greater but for the war, which is preba biy true, tho important fact remains de monstrated that we have more men. now thau when tho war began; that we are not exhausted, nor in the process of ex haustion ; that we are gaining strength, aud may if need be, maiutain the contest indefinitely. This as to men. Our ma terial resources are now more complete and abundant than ever. The national re sources, then, are unexhausted, and, as we believe, inexhaustible. The publio purpose to re-establish aud maiutain tho national authority, is unchanged, and, as wu believe, unchangeable. The manner ot continuing the ctfort remains to be cho sen. On careful consideration of all the evidence accessible, it seems to me that no attempt at negotiation with the insur geut leader could resultiu any good. He would accept of n'othing short of tbe ser vcrance of the Union. His declarations to that effect are explicit and oft-repeated. He docs not attempt to deceive us. He affords us no excuse to deceive ourselves. We cannot voluntarily yield it. Between him and us the issue is distinct, simple and inflexible. It is au issue which can only be tried by war and decided by vic tory. If we yield we are beaten; if tho southern people fail, he is beaten.— Either way it vrould be the victory and defead following war. What is true, however, of him who heads tho insurgeni cause, is not noce -arily true of those who follow. Although he cannot reao cept the Union, they can. SKime of them