VOLUME 4. MESSAGE OK TUB President of the United Slates TO THK Two Homes of Con*rn. «t the Com raeneemcttt ot the S.eon.l 8e..10n, Fellow* Citizen* "112 Ihe Senate and Iltnise of Representatives : After a brief interval the Congress of the United States resumes its annual leg islative labors An all wise and merci ful Providence lias abated the pestilence which visited our shores, leaving its ca* .lamitous traces upon some portion of our country. Peace, order, tranquillity and civil authority have bet-u formally de clared to exist throughout the whole of the United States. In nil of the States civil authority has superseded the coer cion of arms, and the people, by their voluntary action, are maintaining their governments in full activity and com plete operation. The enforcement of the laws is no longer -'obstructed in any State by combinations too powerful to be sup pressed by the ordinary course of judic ial proceedings," and the animosities en ceudeved by the war are rapidly yield* in"to the beneficent influences of uur free- Institutions, and to the kindly if feets of unrestricted social and comnicr eiai iute course An entire restoration off.Sternal feeling must be the earnest wish ot every patriotic heait; and we will have accomplished our grandest na tional achievement when, forgetting the *ud events of the fas', and remembers in" oirly their instructive lessons, wo re sume onr -onward career as a free, pros* perous, aud united people. In my mewage ot the 4th of Decern her ISt»r», Congre-s was informed of the measures which Bad he«n instituted by the Kxecutive with a view.to the gtadu Sl | restoration of the Slates in which the insurrection occurred to their relations with the General Government. Provis ional Governors had been appointed/ ou ven (ions called, Governors elected, Leg islatures assembled, and Senatorj>j.-,ind Hep esenlntives chosen to the Congress td the United Sta'cs. Courts had been ~f,cnc"d ttn tho onfororm?nt ot laws long in abeyance. The blockade had been re moved, custom houses ro c>tabli". it wis officially i' clared to have become valid pari .jj the Constitution of the I'nited States All of the States iu which the insuvtee tion had existed promptly amended their t Constituti.ms, so as to make them con form to the great change thus effected in tbe organic law of the land ; declared •null and void nil ordinances and laws »t '■seees-sion : repudiated u'l pretended debts aufl obligations created for the revolu tionary purposes ol the insurrection ; and •>roeeoded, 111 good faith, to the enact ment of measures lor tbe protection ana amelioration of the condition of the col- race. Congress, how. ver. yet lies iftated to admit sny of these States to representation; and it was not until to 'yards tbe close of tbe eighth month if the session that on exception was made 'fn f»ror of Tennessee, by the adn. ission of her Senators and Representatives. V I deem it a subject of profound regret that Congress has tbus far tailed to ad jnit to seata loyal Senators and Represen "tativesfrom the other States, whose in jjabitantfc, with those of Tennessee, bad engaged in the rebellion. '1 he States more than one-fourth of the whole nnm ber—remain without representation ; the seat* of fifty u.euili#rß in the House ol Representative* and of twenty members of tbe Scuate are yet by their own consent, not by a la:lure of election, but by the refusal of Congress to accept tlieir credentials. 1 heir ad uiHwioo. it is believed, would have jc c.mipltslmd* much towards the "renewal and st/iyigrtieiiing of our raiutions as Ou.'J AMERICAN CITIZEN. people, and removed serious cause for discontent on the part of the inhabitants of those States. It would have accorded with the great principle enunciated in the Declaration of American Independ ence, that no people ought to bear tin burden of taxation, and yet be denied the right of representation. It would have been in consonance with the express provisions of the Constitution, that''each State shall have at least one representa tive," and, -'that no State without its con sent, shall be deprived of its equal suffrage in the Senate." These provis* i.,ns were intended to secure to every State, and to the peopie of every Sta'e, the right .jf representation in each llous3 of Congress; and so important was it deemed by the framers of the Constitu tion that the equality of the States in the Senate should be preserved, that not even by an amendment of the % Constitu tion tfan any State, without its consent, be denied a voice in that branch ot ti e National Legislature. It is true,"it has been assumed that the existence of the States was terminated by the rebellious acts of their inhabi tants, and that tho insurrection having been suppressed, they were thenceforward 0i be considered merely as conquered tei litories. The Legislative, i xeCutive, and Judicial Departments of the Gov ernment have, however, with great dis tinctness and uniform consistency, r fuS ed to sanction an a-suinption so inc mi patible with tho nature ot our republi can system, and with ibe professed oh jeots of the war. Throughout the recent legislation of Congress the undeniable fu«t makes itself apparent, that these ten p diticil ill ties arc nothing less than St te of this Union. At the very com tnencunont of the rebellion, each House declared, with a unanimity as remarka ble as it was significant,"that the war was not "waged, on our partj iifcany spirit id oppression, nor for any purpose of eon c|ues: or subjugation nor purpose of over throwing or interfering with the right* or established institutions of th ne States, but to defend and maintain the suprerru ey of the Constitution and all laws made in pursuance thereof, and to presetvc the Union with all the dignity, equality, nnd rights of the several Mates unimpaire 1 . and that, as soo i as these objects" were "accompli-hed, the "ar ought to In some instances Scnitors were permu ted to continue thc;r legislative 112 tnet ions, while in oilier instances Represent tatives were elected and admitted to sea*; aftei their States had formally declare I their right to withdraw from the I non •md wero endeavoring to maintain that right by force of arms All of tho States whose people wore in insurrection, as •States, were included in the apportion me.tit of the direct tax of twenty millions t;f dollars annually laid apon the llnitod States by the act approved sth lJtOl. Congress. by the act of March 4 ISG-, and by thft apportionment of'reprc Rentalinn thereunder,also rcco"ntze 1 their prcscne6 as States in the? Union j and i hey have, for judicial purposes, been (ii vided into districts, as State* alone can be divided. The same vecosniti >u ap pears in the recent legislation in refer once to Tennessee, which evidently re:jts up in the fact that the functions of the ,rta to preserve ' the unity o! Government which constitutes us one poo pie," by restoring the States to the con dition which they hoM prior to tie bellion. we should be cai iou«, les f . h tv in£ rescued oar n it,ion from perils <>t threatened disintegration, we rosnrt to consolidation, arid in the end ab-olute'dea potisn:, as a remedy tor the recurrence ol .similar troubles. The war h ivinu' ter minated, and with it nil o casion for tile cxcrcitc of powers of doubtful nonstitu tionality, wo should hasten to islation within the biuudriqs prescribed by the Constitution. and to return to the ancient landmarks c-iaMUh'd by om tut 11 rs for th" guidance o; gu ceedm •jenen: ions Ttt.» Constitution which at anv timeesists. Hi ll cli l>y an ox plieil au I auili'-utiC a-t ol' thu wh>l: pen plc.iss.icrejly i up-m up-m all." "'lf in the op i)io:i nl the peop c the liistvibu ti'in < r ii odißcatiou oi the Constitutional piwers lie. in any particular, wiving, let it be c.irrecte 1 by nil amen imctit in.this way in which the Oo.Mtitutiun designates.—« Hut let bo no ch by u-urp i tion ; lor" it is the ens! miory wcitpon In which free Governments arc ibsstroye'l Washington spoko those w irds to In countrymen, wh n. followed by their i<> v< and gratitude, he voluntarily r-itirn I fr mi t lie earns of puljlic I'fe 'To keep in ul tilings witTiu'i tU • p ife ol o ire Vnstifu i in ul povvcts. nn I ijberi-n th ■ (federal Union as iho only r ck of safety," we e pre* scribe Iby iJeflersqn as rule-o! a-tioa to endear to bis "c uirryiiieu tlie trueprin eiples of their Cons'itutton, and promote a union of sentiment ond acfioti equally auspicious to their happiness and safety ' Jacks >n held that the action of tlie Gen er al Government sh u'.dalwa.s best i t i onfiwe lto the sphere ol i r s npp •;« r 1.1 ic lining,an 1 justly an I I'orCi'i y Wued til our Government i- n > I . mmi i n nor our I'niou preserve ! "by iri ■'i -:■ >ii - M Ik rights an Ip twer-i of the -ev. irl Suites In ihui attempting to mate our (ienurn (» ivr-iinnent strong, we in iko it w >ak.— Its tiue stren' th consists in leaving n dividual* and States as much as p issible to themselves; in making itself felt, not in its but in its behefiw-nre ; nt in its control, but in its frfoteetiitn ; qot in hindiiu the States »n >rf> clofolyto the eetitle, but tea' intr each to move nnob stiuote 1 in its proper constitutional orbit,' These are the'"teaching of men whose deeds an 1 services have made theui 111 us tiious. and who, since withdrawn trom the scenes of life, ha\cleft to their country the rich legacy of their exam pie, their wisdom, and their patriotism Drawing frc-h inspiration Iron their los» sons, lot us emulate them in love ofcoun try and respect for the Constitution and the laws. The report, of 'he Secretary of the Treasury afloiiis nmdi uifonuaUMi res pecting the revenue unci commerce of the country. His .icws upon the eurrency. aud with rc'ferenec to a proper adjust mentof our revenue system, internal as well ns impost, are commended to the caref'u' c >nsideration o( Oon-rtsß. Jo my last annual message I expressed my (jen "ral views upon theu)w only call attention to the necessity of carrying into evf ry department of the Government a system of ri<;id accounta bility, thorough retrenchment. and wise economy With'no exceptional nor un usual exprn litures. the opprettsi'u bur dens of taxation can be le'seued by nqeh ji modification of our revenue htws as will be consistent with the public faith, aud the legitimate and necessary wauts of the Government. The report presents a much more sat isfactory condition of our finances than one year a o the most sanguine could have anticipated. During the fiscal year ending the 80th June, 1865, the last year of the war. the public debt was increased $941,902,537, and on the 31st of Octo ber, 1863, it amounted to $2.740,854,- 750. On the 31st day of October, 1866, it had been reduced to $2,551,310,006, the diminution, during a period of four teen months commencing September 1, 1865, and ending October 81, having been 820fi.879.565. In the ljst annual report en tha state of thefinanees, it was estimated that during the three quarters of tlie fiscal year ending the 30th of June last, the debt would be increased §112,- 194,047. During rtiat period, however, it was ic-ueed S3! 106 387, the receipts of the year having been 889,705.905 more, and the expenditures $200,529,235 less than the estimates. Nothing could more clearly indicate than these state ments the extent and availability of the uatinna' resources and the rapidity and safety with which, under our form of government, great military and naval es tablishments can be disbanded, and ex penses reduced from a war to a peace foot- ing. baring th« fiscal year ending the 30ih ol' June, 1806, iho roN wero $558, '•32,620, ami thoex: »!•• nrplus of 337, 281,680. It is estimate'! th 1 the receipts for the fiscal year ending the 30ih Juno, 1867. will be 8475,061,2*6 ami that the expend 'ures will reach the sum of $316,- 428,n78, le ving in the Treasury a sur plus of 8158,633,305. For the fiscal ye r emtio* June 30, 1868, it !•» cstiina* ted that the receipts will amount to 8436, >OO.OOO, and that the expenditures will !>e 8350,'247.641 —showing an excess of 585,752.359 in favor of the Government. These estimated receipts may be dimin ished by a reduction ot excise and im» port duties but after all necessary re ductions shall have been made, the rev etitie of the present and of following years will doubtless be sufficient to cover all .legitimate charges upon the Treasury, and leave a large annual surplus to be applied to the payment ol the principal of hs debt, 't here seems now to be no go.id reason, why tax>s may not be re du " i as tho country advances in popu j&ii.in and wealth, and yet thetlebi be ex tinguished within then ;xc quarter of a century. The report of the Secretary of War furnishes valuable an 1 important ittfor ination in reference to the operations of nis Department during the past year.— Few volunteers now remain in the ser vice, and they arc being discharged as rapidly a'jthey can le replaced by, regu lar troops. The army litis been promptly paid, carefully provided with medical tieatmont, Will sheltered and subsis'ed, and is to be furnished with breech load in* small arms. Tho military strength •if the nation ha* been unimpaired by the lischargc of volunteers, the disposition •if unserviceaMe or p»ri.-hablc stores, and the retrenchment of cpcnditure. Suffi cient war material to meef any cmerirency has 1 eon retained, and,from the disband ol volunteers standing ready to respond to the. national call, large armies can be rapidly organized, equipped, and concen trated. Fortifications on the oast and frontier have received, or are •"O'.iig pro pired for more powerful armanisnts ; lake surveys and barb r nml liver improve ■ll TIN are in c tiirso of cneractic prosecus i: m Preparations have been nude for t ie pnvni"nr of the addition il bounties niihoriecd during the recent session of Congress, under such regulations as will protect the (lovernincnt frotu frauj, anil secure to the honorably discharged .soldier ilie well earned r. ward of his faithfulness and palhintry. More than six thousand maimed sol. tiers have received ftVtificial I mlis or other surgical apparatus; and forty»one national cemeteries, eont».iiiin« the remains of 104.5' G I'nion soldier*, e ive already l>oen established Ihe total estimate of military appropriation-: isS.'o. 'ws G6;). It is stated in the rcu<> • .112 the Seere ta'y if the Navy tha' Ibe . |< roc at \ this time consists of tv i huhil ed. and seventy-eight vessel.-' arm. d .with two ; thousand three hundrc 1 and fifty one guns. Or thcseTonoliutidi i d and fifteen vessels, carrying one thousand and twenty nine guns. are in Commission, distributed chiefly among; ►even tqmtdrons. The number of men in the service is 'hirtcen h'iusund si* hundred (Jreat activity and valance bare l>ecn displayed by all the squadrons and their movements have been judiciously and efficiently arranged in such manner SK would best promote American commerce, and protect the rights snd interests-of our countrymen abroad. The yeMscls unemployed are un dergoiuL: re airs, or are laid up nntil their services may be required. Most of the iron»elaa fleet is at League Island, ici the vicinity of Philadelphia, a placo wiucli, until decisive action should be taken by C'ofiirresx was s.elee'ed by the Secretary of the' Navy as the most eligible location for that Clitss of vessels. It is important that a suitable public station should be pros vided tnr «lnd fleet. T t is in tended that these Tessels shall bf in prop ei' condition for any wn#iyency, and 'tis desirable that the bill-accepting island fir .naval purposes, which | apg d the Home-ot Representativs ai ils last session, should receive final action at an early period, in order that there may be a suitable public station for this cla-s ol vessels, as well as a navy y?rd of area sufficient for the wantsof tha seryico. on the Delawire river. The Naval Pension Kund amounts to having been increased daring the - I ■ year. The expenditures of the Depart ment fin the fiscal year end : ng 30th June last were $43,324,520, and the estimates for the coming year amount to 823.578,- 430. Attention is invited to the condi tion of our seaiueu, and the importance of legislative measures for their relief and improvement The suggestions in behalf of this deserving class of our fellow cit izens are earuestly recommended to the favorable atteution of Congres#. The report of the Postmaster General presents a most satisfactory condition oT tho postal service, and submits recom mendations which deserve the considera tion of Congress. The revenues of the Department for tire yeer ending June 30, 1860, were 814.386,986, nud the expen ditures 815,352,079, showing an excess of the latter of 8965,093. In anticipa tion of this deficiency, however, a cial appropriation was made by Congress in 'he act approved July 28, 1806. In* eluding the standing appropriation of 8700,000 for free maii matter, as a legit» imate portion of the revenues yet remain ing unexpended, the actual deficiency for tho past year is only 8265,093 —a sum within 851,141 of the amount esti mated in the annual report of 1^64 The decrease of revenue compared with tho previous year was one and one-fifth per cent., and the increase of expendi tures, owing principally to the enlarge ment of the mail service in the South, was twelve per cent. On the 30th of June last there were ic operation six thousand ni.ie hundred and thirty mail routes, with an' aggregate length of oue hundred and eighty thousand nine hun dred and iwcnty-onc miles, an aggregate annual transportation of seventy-one million eight hundred and thirty-seven thousand nine hundred and fourteen miles, and an aggregate annual cost, in« eluding all expenditures, of 88 410,184 The length < 112 railroad routes is thirty two thousand aud ninety two miles, and tho annual transportation thirty million six hundred and nine thousand four hun dred and s'xty-seven miles. The length of steamboat routes is fourteen thous ml three hundred and forly-six miles, and the annual transportation three million four hundred and eleven thousand nine hundred and sixty-two miles. 'lhe mail service is rapidly increasing throughout the whole country, and its steady exten sion in the Southern States indicates their constantly improving condition. 'lho slowing importance of tho foreign ser vice jilso merits attention. The Post Office Department ol Great Britain and our own have agreed upon a pieiiminary basis for a new Postal Convention, which, it is believed, will prove eminently beneficial to the commercial interests of the United States, inasmuch as it contemplates a re duction o the international letter post age to one-half the cxis'tios rates ; a rft duction of'postage with all othtr countries to and from which correspondence is transmitted in the British moil,or in clos ed mails through the United Kingdom ; the establishment of uniform and reason able charged lor the sea and tcrritori .1 transit of correspondence in closed mails and an allowance to each Post Office De partment of tlye right to use all mail communications established under the authoiity of the other for the dispatch of correspondence, cither in open or closed mails, on the same terms as those appli» cable lo the inhabitants of the c untry providing the means of transmission. The report of the Secretary of the In I terioi exhibits the condition of tho c branches to the pul>l : c service which are ' committed to his snpervirion. l)utin<; the last fiscal year, four -million six hun i.red and twenty nine thousand three hun drcd and twelve acres of public land wcro .digj.oMd of. one million eipht hundred and ninety two thousand five hundred and sixtrcn acres of which were entered under the homestead act. 'iho policy oripiuully adopted relative to the public lands has undergone essential modifica tions. Imtnodiato roveriue, and not their rapid settlement. was tho cardinal feature ol our land system. Long experience and carne-t di-cission have resulted in the eon via lion that the early development ol our agricultural resources, an I the diffusion of an energetic population over our vast territory, are objects of far great cr importance to the national growth and prosperity than the proceeds of the sale o! the land to the highest bidder in open maikct. The pre-emption laws confer ui>on the pioneer who complies with thc< terms they impn«e tho privilege of pur chasing a limited portion of " unoffercd lands" at the minimum price. Tho homestead enactment* relieve the settler from tho payment of purchase money, and secure him a permanent home, upon the condition of residence for a term of yeurs. This liberal policy invites emi gration from the old, and from the more crowded portions of tho new world. Its propitious results are unndoubtcd. and will be more signally manifested "'hen ti i«e shall have given to it a wiJcr devel opment. Congress has made liberal grants of public land to corporations, in aid of the construction of railroads and other inter niil improvements. Should this policy hereafter prevail, njo v e stringent provis iop« will b i required to secure a faithful application of '.he fund. Tho title to the lands should not pass, bv patent or oth erwise. but remam in tho Government and subject to its control until some por ti through the Pacific Ocean by the p'-ject'd iineof telepriph batween Kamchatka and tho Russian Possessions in America. % Tho resolution of Congress protesting against pardons by foreign (iovernments of persons convicted of infamous offen scs, on condition of emigration to our country, has been communicated to tho States with which we maintain inter course, and the practice, so 'ustly tho subject of complaint on our part, has not been renewed. Tho congratulations of Congress tn the Emperor of Itussia, upon his escape frotr. ttempted assassination, have been pre sented to that humane and enlightened mV, and received by him with express ions of grstcful appreciation. '' NUMBER 2, The Executive, warned of an attempt by Spnnish>-Anierican adventures to in duce the emigration of freedmen of tha I nited States to a foreign country, pro tested against the project as one which, if consummated, would reduce them- to a boadage even mora oppressive than that from which they have just been relieved, 'ssuranee has been received from the Government of the State in which the plan was matured, that the proceeding will meet neither its encouragement nor approval. It is a questioq worthy of jour consideration, whether our laws upon this su ject are adequate to the prevention or punishment of the crime thus meditated. In the nmnth of April last as Congress is aware, n friendly arrengemsnt was made between the Emperor of France and the President of tho United States for the withdrawal from Mexico of the Freqclf expeditionary military forces This with drawal was to be effected in three detach ments the first of which, it was under stood, would leave Mexico in November, now past, fhe second in March next, an<{ the third and last in November, 1867. Immediately upon the completion of the evacuation, the French Government waq to assume the same attitude of non inter vention, in regard to Mexico, as is held by the flovernmentof the United States Repeated assurances have been given by the Emperor, since that agreement, that he would complete the'promised evacua tion within the period meutioned,orifpncf It was teasonably expected that the proceedings thus contemplated would pit;-, duce a crisis of great political interest in tSe Republic of Mexico. The newly appointed Minister of the United State;. Mr. Campbell, was therefore sent forward, on the 9th day of November last, to as sume his proper functions as Minister Plenipotentiary of the United Brmation was received from Paris that the Emperor of France had some time before deeided not to withdraw a detachment of hi# forces in the month of Novemlier past, accord ing to engagement, bat that this ''ecision was made with the purpose of withdraw ing the whole of those fore's in the en suing spring. Of this determination, however, '.he United Btatea had not re ceived iny notioc or intimation; and, so t -on as the information was received by the tiovernment, care was taken to make kniwn its dissent to the Emperor of France. I cannot forego the hope that France will reconsider the subject. and adopt some resolution in regard to the evacuas lion of Mexico which will conform as nearly as practicable with the existing engagement, nnd thus meet the just ex pectations of the United States The papers relating to the subject will be laid before yon. It is believod that, with the evacuation of Mexico by the expedition ary torces, no subject for serious differ ences between France and the Uoited Slates would remain. The expressions of the Kmperior and people of Franco war rant a hope that the traditionary friend ship between the two jountries might in that case bo renewed and permanently restored. A cliiin of a citizen of tho United States for indemnity for spoliations com mitted on the high sc»n by the French nuihorities, in lha exercise of a bellig erent power against Mexico, has been met by the Government of Franco ,l»itl> a proposition to defer settlement until a mutual convention for the adjustment of all claims of citizens and subjects of both countries, arising out of the recent wars on this Continent,shall be agreed upon by the two countries. The suggestion isnot ileerued unreasonable but it belongs to Congress to diiect tho manner in which claims for indemnity by foieigners, all well as by citizens of the United States, arising out of the late civil war. shall bo, abjudicated and de'ermined. I have no doubt that tho subject of all such claims will engace your attention at a oonvenU eut and proper time. It is a matter of regret that no coo« siderable advance has bpen made towards aa adjustment of the differences between the United States and Great Britain, arising cut of tho depredations upon our national Simmercc and other trespasses committed during our civil war by BriU iah subjects, in violation of international law and treaty obligations. The delay, however, may he believed to have resul ted in no small degree from the domestic situation of Great Britain. An entire ebango of ministry occurred in that country during tho last session of £*arli ment. The attention of the new minis try was called to the subject at an early day, nnd there is some reason to expect that it will now be considered in a becom ing hod friendly spirit. The importance of an early disposition of the question cannot be exaggerated. Whatever might be the wishes of the two Governments, it is manifest that will and and frien4- ship between the two countries cannot be established until a reciprocity, in the practico of go>d faith and neutrality, shall be restored between tho respeotire na'ions.