T ERZ 13 VF. 111111:17. E R TIS ID G One Sqiierii one Insertion, 01 00 Htir each out srgnent !rtortion. 6u Viir He eon the Advertisements, 25 Ou Lep! Notices ' • 400 Profes•lo.ial Cards without paper, 7 tO Obituary Not ..ori an On anionic% tlou , rel ting .o matte sot' pri• ' • IratO intonate alone, 10 cents per line. lOU PRINTING.—Our ibb Printing Office is the svtest and most c unplute establishment In th .loun y. Four good Presses, and a general variety of materlaldfultn for plain And Fancy work of every kin I, enables us to do Job Printing at the shottost' aotico, and on the most reasonable toms. PersOnf. to wane of Uills, Blanks, or anything In the Jobbing lino, will find it to their interest to give us a call , PRESIDENT JOHNSON'S FIRST ANNUAL MESSAGE. Fellow-Citizens of the Senate and House of Representatives : To express gratitude to God, in the name of the People, for the preservation of the United States, is my first duty in addressing you. Our thoughtS next revert to the death of the late President by an act of parricidal treason. Thegrief of the nation is still fresh; it finds some solace in the consideration that he lived to enjoy the highest proof of its confidence by entering on the renewed term of the Chief Magistracy, to which he had boon elected ; that he brought the civil war substantially to a close ; th t his loss was de plored in all parts of the Union ; and that foreign nations have rendered justice to his memory. His removal cast upon the n hea vier we ght of cares than ever devolved upon any one of his predecessors. To fulfil my trust I need the support and confidence of all who are associated with mein the various departments of Govern ufnt., and the support and contidencemf the people. There is hut one way in which I c m hope to gain their necessary aid : it is, to state with frankness the principles which guide my conduct, and their application to the present 'date of of fairs, well aware that the effiency of my labors will, in a great measure, depend on your and their undivided approbation. The Union of the United States ef Ameri ca was intended by its authors to last as long as the States themselves shall last. " THE UNION:7,IIAM, BE PERE ETUA nre the words of the Confederation. T'o FORM A Mon 0 PERFECT UNION," by an ordinance of the People of the United States, is the declared purpitse of the Constitution. The hand of Divine Providence WAS ll , Ver more plainly visible in the affairs of men than in the framing and adopting of that instrument It is, beyond comparison, the greatest event in American history and indeed, is it not, ()I' all events in tniidern times, the most preg mint with con equences for every pew lc ot . the earth 7 The members of the Gin venti(in which prepared it, brought to tloiir work the experience of the Cwif,d,rutimi, of their several States. and of other Republican Gov erninen to, old and new: but they need e d. and they obtained a wisdom superior to ex perience. And when for its validity it re quired the approval f a people that occuliied a large part of a &ai mint and acted sepa rately in ninny distinct conventions, what is more wpffid7rful ti t an that, after earnest con tention and long d.scussion. all feelings and all ()pinions were ultimately - drawn in one way to its support. The Omstitution to which life w,us thus imparted, contains within itself ample re sources for its own preservation. It has power to enforce the laws, punish tress n, and ensure domestic tranquility. In case of the usurpation of the Government of a State by one roan, or an oligarchy, it becomes a duty of the United States-to make good the guarantee to that State of a republican ; form of government, and so to maintain the ho mogeneousness of all. Does the lapse of time reveal defects? A simple mode of amend ment is provided in the Constitution itself, so that its conditions can always be made to conform to the requirements of advancing civilization. No room is allowed even for the thought of a po sibility of its coining to an end. And these powers of self-preserva tion have always been asserted in their com plete integrity by every patriotic Chief Ma gistrate—by Jefferson and Jackson, not less than by Washington and Madison. The pa-ting advice of the Father of his Country, while yet Pres dent, to the people of the United States, was, that "the free Constitu tion, which was the work of their hands, might be sacredly maintained;" and the in augural words of President Jefferson held up "the preservation of the General Govern ment, in its constitutional vigor, as the sheet anchor of our peace at home end safety abroad." The Constitution is the work of '• the People of the United States," and it should be as indestructible as the people. It is not strange that the framers of the Constitution. which had no model in the past, should not have fully comprehended the excellence - of their own work. Fresh from a struggle against arbitrary power, ninny patriots suffered from harrassing fears of an absorption of the State Governments by the ' ; General Government, and many from a dread that the States would break away from thhir orbits. But the very greatness ,of our country should allay the apprehension of encroachments by the General Govern ment. The subjects that come unquestiona bly within its jurisdiction are so . numerous, that it must ever naturally refuse to be em barrassed, by questions that lie beyond it.— Were it, otherwise, the Executive would-sink Jbeneatb the burden . ; 'the channels of jtiStice would be choked ; legislation 'would be ob structed by' excess ; so that there is greater temptation to exercise some of the functions of the General Government through the States than to trespass on their rightful sphere. The absolute acquiescence in the decisions of the majority" was, at the begin ning of the century, enforced by Jefferson "as the vital principle of republics," and the events of the last four years have estab lished, we will hope forever, that there lies no appeal to force. The maintenance of the Union brings with the support of the State Governments in all their rights; but it is not one of the rights of tiny State Government to renounce its own place in . the Union, ,or to nullify the laws of the The largest liberty is to be maintained in the discussion of the acts of the Federal Government;, ,but there is ho appeal from its :laws, except to the various brahcheiof that GovernMent ibielf, or to the people, who' grant to' the Members of the LegiSlature,nrid of the executive Depart ments 'ne tenure but a, limited one, and in that manner always retain the powers of re- dress. ; , ‘! sovereignty of the States' , is, the language of the Confederacy, and not the lan-, guage, of the Constitution. The latter con tains,the emphatic words : . The Constitu tion, and, _the laws of 'the',X.iiited States which shalyte: Made 'in pursuance'thereof,, upd ill ireatieo'iAtide or Which shall be Made, Middr the auP?l'lt).•• of' the nited States, shall the BilPFama law q the ; hind ; and ihe -judges in 43vory Statoshull bi.hound.therebY, anything in thq constitution dro aw , o f any State: to the cont!hry notwitimtanal,; o:2 7 • dove'rninent of the'LA te d ~., and IN VOL. 65. RHEEM & WEA.KLEY, Editors & Proprietors. ment. With us, this idea oflimitation spreads through every form of administra tion, general, Stato and municipal, and rests on the great distinguishing principle of the recognition of the rights of man. The an cient republics absorbed the individual in the State, prescribed his religion, and con trolled his activity. The American system rests on the assertion of the equal right of every man to life, liberty, and the pursuit of happiness; to freedom of conscience, to the culture and exercise of all his faculties. As a consequence, the State Government is Mb ited, as to the General Government in the interest of the Union, as to the individual citizen in the interest of freedom. States, with proper limitations of power, are essential to the existence of the Consti tution of the United States. At the very commencement, when we assumed a place among the Powers of the earth, the Declara tion of Independence was adopted by States; so also were the Articles of Confederation ; and when • 'the People of the United States" ordained and established the Constitution, it was the assent of the ,States, one by one, which gave it vitality. In the event, too, of any amendment to the Constitution, the pro position of Congress needs the confirmation of Slates. 'Without States, one great branch of the legislative government would be want leg. And, if we look beyond the letter of the Conatitution to the character of our country, its eapaeit . for comprehending within its juri•dliction a vast continental empire is due to the system of States. The best security for the perpetual existence of the States is the stipreine authority" of the ConsiitutiOn of the United States. The perpetuity of tne Constitution brings with it the perpetuity of 11,,, States ; their mutual relation makes us whdt we are, and in mir political system their connexion is indissoluble. The whole cannot exist without the parts. nor the parts without the whole. So long as the Constitu t on of the d States endures, the States will endure ; the destruction of the one is the destruefion of the other ; the preservation of the one is the pre,ervation of the other. have thus explained my views oY the onitwo c ,,,i,,tion: or the CunatitLLion nnil the Slab s, canto Ihev unf o ld the principles on which 1 have sought to solve the momen Ines questions and overcome the appalling difficulties that mot me at, the very com mencement of my administration. It has been my steadfast object to escape from the sway of momentary passions, and to derive a healing policy from the fundamental and unchanging principles of the Constitution. I found the States suffering from the effects of a civil war. Resistance to the General Government appeared to have exhausted it self. The United States has recovered pos session of their Mrts and arsenals; and their armies were in the occupation of every State which had attempted to secede. Whether the territory within the limits of those States should be, held as conquered territory, under military authority mum sting from the Pre sident as the head of the army, was the first question that presented itself for decision. Now, military governments, established for an indefinite period, would have offered nn Seenrity for the early suppression of dis content ; would have divided the people into the vanqui.hers and the vanquished ; and would have en \ enomed hatred, rather than have restored affection. Once established, no precise limit to their continuance was conceivable. They would have oceasioned an incalculable and exhausting expense. Peaceful emigration to and from that portion of the, country is one of the' best means that can be thought of for the restoration of har mony; and that emigration would have been prevented ; for what emigrant from abroad, what industrious citizen at home, would place, himself willingly under military rule? The chief persons win. would have followed in the train of the army would have been dependents on the General Coverninent, or Men \‘'ll) expect pt :: otit from the miseries of their erring fellow-citizens. The powers of patronage and rule which would have been exercised, under the President, over a vast, and populous, and naturally wealthy region, are greater than, unless under extreme ne cessity, I should be o willing to entrust to any one man ; they are such as, for myself, I could never, unless on occasions of great emergency, consent to exercise. The wilful use of such powers, if continued, through a period of years, would have endangered the purity' of 'the general administration and the liberties of the States which remained loyal. Besides the policy of military rule over a conquered territory would have implied that the States whose inhabitants may have taken part in the rebellion had, by the act of those inhabitants, ceased to exist. But the true theory is, that all pretended acts of secession were, from the beginning, null and void. -- The States cannot commit treason, nor screen the individual citizens who may have com mitted treason, any more than they can make valid treaties or engage in lawful commerce with any foreign Power. The States at tempting to secede placed themselves in a condition where their vitality was impaired, but .not extinguished—their functions sus pended, but nut destroyed. But if any State neg.ects or refuses to per form; its offices, there is the more need that the General Government should maintain all its authority, and, as soon ns practicable, resume the exercise of all Its functions. On this principle I have acted, and have gradu ally and quietly, and by almost impercepti ble steps, sought to restore the rightful en ergy of the Geneinl, Government and the, States'. To that and, Provisional Governors, have been appointed for the States, Conven tions called, Governors elected, Legishitures assembled, and Senators and Representatives chosen to the Congress of the United States. At the seine time,'the Courts of the United States, as far as could be done, have beep re opened, so that the laws of the ,United States, may be enforced thtbuglitheir agency.. The blockade has been removed and the custom houses established in ports of entry, so that revenue of the United States may bo col ]acted. The Post Office Department renews its ceaseless activity, and the General Gov ernment iS thereby enabled to `noinmunicate proniptly. withrrits officenir 'wird 'agent's'. The Ciffirts bring security to" persons r and prop._ brty - the - opening of . - the ports invites %the restoration of industry,and commerce; the post office renews the facilities of social in tercourse and' of busiisois. ~And is .it not happy. for Us all,,that the restoration of 'each (if these functions of the General Gorirn WM ment brings with it a blessing to the States over which they are extended ?\ Is it not a sure promise of harmony and; renewed at tachment to the Union that, after all that has happened, the return of the General Gov • ernment is know:l only as a beneficence? I know very well that this policy is atten ded with some risk ; that for its success it requires at least the acquiescence of the States which it concerns ; that it implies an invitation to those Statesby renewing their allegiance to the United States, to resume their functions as States of the Union. But it is a risk that must be taken; in- the choice of difficulties, it is the smallest risk ; and to diminish, and; if possible, to remove all dan ger, I have felt it incumbent one me to as sort one other power of the General Govern ment—the power of pardon. As no State car. throw a defence over the crime of trea son, the power of pardon is exclusively vested in the Executive Government of the United States. In exorcising that power, I have taken every precaution to connect it' with the clearest recognition of the binding force of the laws of the United States, and an unqualyled acknowledgment of the great social change of condition in regard to sla very which has grown out of the war, The next step which I have taken to restore the constitutional relations of the States, has been an invitation to them to participate in the high office of amending the Constitution. Every patriot must wish for an amnesty at the earliest epoch consistent with public safety. For this great end there is need of concurrence of all opinions, and the spirit of mutual conciliation. All parties in the late terrible conflict must work together in harmony. It is not too much to ask, in the mune of the whole people, that, on the one side, the plan of restoration shall proceed in conformity with a willingness to cast the disorders of the past into oblivion; and that, on the other, the evidence of sincerity in the future inaintenanee of the Union shall be put beyond any doubt by the ratification of the proposed amendment to the Constitution, which provides fur the abolition of slavery b,rever within Iho Limits of cur country. So long as the adoption of this am , ndment it delayed, so long will doubt, at d jealousy, a.,d uncertaintyprevail. '1 his is the measure which will e nee the sad memory of the past; this is the measure which will most certainly call population, and, capital, and security to those parts of the Union that need them most. Indeed, it is not too much to ask of the States which are now resuming, their places in the family of the Union to give this pledge of perpetual loyalty and peace, Until it is done: the past, however much we may desire it, will not betorgotten. The adoption of the amendment re-unites us be yond all power of - disruption.. It heals the wound that is still imperfectly closed ; it re moves slavery, the element which has so long perplexed and divided the country ; it makes us once more a united people, renewed and strengthened, - bound more than dyer to mu tual affection and support. The amendment to the Constitution being adopted, it would remain for the States, whose powers have been so long in abeyance, to resume their places In the two branches of the National Legislature, and thereby com plete the work of restoration. Here it is for you, fellow-citizens of the Senate, and for you, fellow-citizens of the House of Repre sentatives, to judge, each of yoti for your selves, of the elections, returns, and qualifi cations of your own members. The full assertion of the powers of the General Government requires the holding of Circuit Courts of the United States within the districts where their authority has been interrupted. In the present posture of our public affairs, strong objections hay been urged to holding those courts in any of the States where the rebellion has existed ; and it wars ascertained, by inquiry, that the Cir cuit Court of the United States would not be held within the District of Virginia dur ing the autumn or early winter, nor u - Ltil Congress should have "an opportunity to consider and act on the whole subject." To pint. deliberations the restoration of this branch of the civil authority of the United States is therefore necessarily referred, with the hope that early provision will bo made for the resumption of all its functions. It is manifest that treason, most flagrant in character; has been committed. Persons who are charged with its commission should have fair and impartial trials in the highest civil tribunals of the country, in order that the Constitution and the laws may be fully vin dicated ; the truth clearly establiihed and affirmed that treason is a crime, that traitors should be punished and the offence madein famoits; _and, at the same time,. thal. r the question may 'he judicially settled;' fiply and forever, that no State of its own will has the right to renounce its place in the Union.' The relations of the, General Government towards the four millions of inhabitants whom the war has called into freedom, have engaged my most serious consideration. On the propriety of attempting to make the freedmen electors by the proclama'ion of the Executive, I took for my counsel the Constitution itself, the interpretations of that instrument by its authors and their contemporaries, and recent-legislation by Congress. When, at the first movement to wards independence, the Congress of the United States instructed the , several States to institute governments of their own, they left each State to decide for itself the condi dims for. the enjoyment of the elective fran. chiso. During the .period of the Confeder cy, there continued to exist a very great diversity in the qualifications of electors in the sevoyal States; and even within a State a distinction of qualifications prevailed with regard to the officers who were to be chosen. The Constitntion of the United States recog nizes these diversities when it enjoins that, in the choice of members of the, House of Representatives of the United States, ""the- electors in each State 'shall' have the quali fication's reqUisito for, electors' of , the most numerous branch, of the State•Logislature." After the formation of the Constitution, it reniairiefi, ru3 * before, the uniform usage' for eack :State te i 'sifflArOc • tbe 41:14y, 91, , ti! I,4pp - tors, acebedineto - , its own , judgment ; , and, under_this,system,..one„Stato ..after-another has" proceeded to - increase the - number of its electors, now universal suffrage,. or somethirigNery near it, is the general So fixed was thieyeservation of.power in the habits of the ,people, - and so unquestioned IniretflttO 13. e (1041=', inter ,„„ Carlisle, Pa., Friday, December 15, 1865 tution, ttiiit during the civil war the lute President never harbored the purpose—cer tainly never avowed the purpose—of disre garding it(; and in the acts of Congress, du ring that period, nothing can be found which, during the continuance of hostilities, much less after their close, would have sanctioned any departure by the Executive from a policy which has so uniformly ob tained. Moreover, a concession of the elec tive franchise to the freedmen, by act of the President of the 'United States, must hati been extended to all colored m en, wherever found, and so must have established a change of suffrage in the Northern, Middle, and Western States, not less than in the South ern-and Southwestern. Such an net would have created a new class of voters, and . would have been an assumption of power by the President which nothing in the Consti tution or laws of the United States would ha'i,e,,warranted. On the other hand. .every danger of con flict is avoided when the settlement of the question is referred to the several States.— They can, each for its elf, decide on the measure,, and whether it is to be adopted at once and absolutely, or introduced gradual ly and with conditions. In my judgment, the freedmen if they show patience and manly virtues, will sooner obtain a partici• pation in the elective franchise through the States than through the General Govern ment, even if it had power to intervene.— When the tumult of emotns that have been raised by the suddenness of the social change shall have subsided, it may prove that tiny will receive the kindliest usage from snie of those on whom they have heretofore most closely depended. But while I have no doubt that now, after the cliise of the war, it is not competent for the General Government to extend the elec tive franchise in the several States, it is equally clear that good faith requires the se curity of the freedmen in their liberty and their right to claim the just return of their labor. I cannot too strongly urge a dispas sionate treatment of this subject, whieh should he carefully kept aloof from all party strife. We must equally avoid hasty as sumptions of any natural impossibility ti,r the two races to live side by side, in a state of mutual benefit and good will. The ex periment involves us in no inconsistency : let us. then, go on and make that experi ment in good faith, and not be t o easily disheartened. The country is in need of la bor, and he freedmen are in need of em ployment, culture -and protection.. While their right of voluntary migration and ex patriation is not to be questioned, I would not advise their forced removal and coloni zation. Let us rather encourage them to honorable and useful industry, where it may be beneficial to themselves and to the coun try ; and, instead of hasty anticipations of the certainty of failure, let there be noticing wanting to the fair trial of the experiment. The change in their condition is the substi tion of labor by contract for the status of slavery. The freedman cannot fairly be ac cused of unwillingness to work, so long as a doubt remains about his freedom of choice in his pursuits, and the certainty of his re covering his stipulated wages. In this the interests of employer and the employed coin cide. The employer desires in his work men spirit and alacrity, and these can be permanently secured in no other way. And if the one ought to be able to enforce the contract, so ought the other. The public interest will be best promoted, if the several States will provide adequate protection and remedies for the freedmen. Until this is in some way accomplished, there is no chance for the advantageous use of their labor ; and the blame of ill-success will not rest on them. I know that sincere philanthropy is ear nest for the immediate realization of its re motest aims ; but time is always an element in reform. It is ono of the greatest acts on record to have brought four millions of peo ple into freedom. The career of free indus try must be fairly opened to them ; and then their future prosperity and condition must, after all, rest mainly on themselves. If they fail, and so perish away, let us bo careful that the failure shall not be attributable to any denial of justice. In all that relates to the destiny cf the freedmen, we need not be too anxious to read the future; many inci dents which, from a speculative point of view, might raise alarm, will quietly settle themselves. Now that slavery is at an end or near its end, the grofitness of its evil, in the point of view of public economy, becomes more and more apparent. Slavery was esentially a monopoly of labor, and as such locked the States where it prevailed against the incoml ing of free-industry.-- :Where labor was the property of--the capitalist, the whim man mtip excluded from employment, or had but the second best chance of finding it r'and• the foreign emigrant turned away from the region whore his condition would be so pre carious. With the destruction of the mo nopoly, free labor will hasten from all parts of the civilized world to assist in develop ing varLus and immeasuranle resources which have hitherto lain dormant. The eight or,mine States nearest the Gulf of Mex ico have a soil of exuberant fertility, ft cli mate friendly to long life, and can sustain a denser population than is found as yet in any part of our country. And the future influx of population to them will be mainly from the North, or from the most cultivated nations in Dirope. From the sufferings that ' have attended them during our late strug gle, let us look away to the future, which is Sure to be laden for them with greater pros perity than has ever before beeil known.— The removal of the monopoly of'slavelabor is a pledge that_those regions be peo pled by a numerous and enterprising pociu lotion; which will vie with' any in the Union in compactness, inventive genius, wealth, and industry. ' . . Our Government springs from and .was made for the people—net the people for the doveromOnt. To them it, owes allogianeb ; front them it, must , derive its courage, strength, and wisdom. 4u: while the Gov , ernment,is pins ;bound to ,defer to the; pep ide,:frine,.wherri it derives its : existence, it "`should;frnm - the*Ty`Votisicle'ration of-.its .. origin, tie , strong in . itakower of resistance to the, establ.shment .Orineq ualities. Mo nopeiieg, PP , TOnities, and of iss legislation, are cptitrary ; to the genius of free govern ; Meet; and ought n)t, to be' allowed. . , Here,. fe no room for: fair9re4.9l,aagee,*ll4co-, nopolies, the principal:of our Government, is that of equal laws and freedom of industry. Wherever monopoly attains a foothold, it i. sure to be a scource of danger, discord and trouble. We shall but fulfil our duties as legislators by according "equal and exact jnatice to all. men." special privileges to none. The Government is subordinate to the people; but., as the agent and represen tative of the people; it must be helttsPperior to the monopolies, which,' in themselves, ought never •o' be granted, and which, where they exist, must be suborditrt te and yield to the Government. The Constitution confers on Congress the right to regulate commerce among the sev eral States. It is of the first necessity for the maintenance of the tniun, that that com merce should be free and unobstructed. No State can be justified in any device to tax the transit of travel and commerce between States. Theposition of many States is such that, if they were allowed to take advantage of it RS': purposes of local revenue, the com merce between States might be injuriously burdened, or even virtually prohibited. It is best, while the country is still young, and While the tendency to dangerous monopolies of this kind is still feeble, to use th power of Congress so as to prevent any selfish im pediment to the free circulation of men and merchandise A tax on travel and mer chandise, in their transit, constitutes one of the worst forms of monoprly, and the evil is increased if coupled with a denial of the choice of route. When the vast extent of oar country is considered, it is plain that every obstacle to the free circulation of commerce between the States ought to be sternly guarded against by appropriate legisration, within the limits of the Con4i tution. The report of the Secretary of the interior explains the condition of the public lands, the transactions of the Paten. Office rind the Pension Bottom, the 'management of nor Indian tifTvirs, the progress made in r he con struetion of the P.icitic railroad,and furniAt s information in reference to !natters of locvl interest in the Di-trict of Columbia. also pr.•sentd evidence of the successful opt - ratio!, of .he Homestead Net, under the pro vkimis of which 1,190, 1, 33 acres of the public lands were- entered during the last fiscal year—more then one-fourth of the whole number of acres sold or otherwise dispoSed f during that period. It is estimated that the receipts derived from this SCOUITC are sufficient to covet the expenses incident to the survey and disposal of the lands entered under this act, and that payments in cash to the , xtent of from forty to fifty per cent, will be made by settlers, who may thus at any time acquire title before the expiration of the period at which it would otherwise wee:. The homestead policy was established onlyilfter,long and earnest resistance; expe rience proves its wisdom. The hands, in the hands of industrious settlers, whose labor creates wealth and contributes to the pub lic rescource••, are worth more zo the United States than if they had been reserved as a solitude for future purchasers. The lame- table events of the last four years, and the sacrifices made by the gal-. lent men of our Army and Navy, have F welled the records of the Pension Bureau to an unprecedent extent. On the 30th day of June last, the total number of pensioners ivas 85,986, requiring for their annual pay, exclusive of expenses, the sum of $8,023,449. The number of applications that have been allowed since that date will require a large increase of this tar oust for the next fiscal year. The means for the paymentofthe Sti pends due; under existing laws, to our disa bled soldiers Rod 81111,11'8, and to the families of such as have perished in the service of the country, will no doubt be cheerfully and promptly granted. A grateful people will will not hes . tate to sanction any measures having for their object the relief of soldiers mutilated and families made fatherless in the efforts to preserve our national existance. The report of the Postmaster General pre sents an encouraging exhibit of the opera tions of the Post Office Department during the year. The revenues of the past year from the loyal States alone exceeded the maximum annual receipts from all the States previous to the rebellion, in the sum of $6,- 038,091 ; and the annual average increase of revenue during the last four years, compared with the revenues of the four years immc dately preceeding the rebellion, was $3,533, 845. The revenues of the last fiscal year amounted to $14,556,158, and the expendi tures to $13,694,728, having a surplus of receipts over expenditures of $861,430. Progress has been made in restoring the postal service in the Southern States. The views presented by the Postmaster General against the policy of granting subsidies to ocean 'mail steamship lines upon established routes, and in favor of continuing thepres ent system, which limits the compensation for ocean service to the pdstagetairnings,are recommended to tb • careful consideration of Congress. ' It appears from the report of the Secretary of the Navy, that while, at the commence ment of the present year,there were in com mission 530 vesssels of all classes and des criptions, sinned 'with 3,000 guns, and manned by 51,000 men, the number of ves sels at pressent in commission is 117, with 830 guns and 12,128 men. By this l rompt reduction of the naval forces the expenses of the Government have been largely dimin ished, and a number of vessels, purchased for naval purposes from the merchant ma rine, have been returned to the peaceful pursuits of commerce. Since , the suppres sion of active hostilities Our foreign squad rons have been re-established, arid consist of vessels rouch , more efficient than those employed on, similar service previous to the rebellion. The suggestions for the enlarge- Ment of the, nayy yards, and . espeeially for the estabTishinont of ono in fresh water for iron-elad' vessels, is deservingbf considera tion, as is also the recommendation for a different location and toot e, ample igrounds for, the Naval Academy. In the report of the Secretary of War, a genehit'snminar,y ,Is gkedof„th'e military campaigns of 1864. and 4866,.endingin the, snppression of armed'eefiiiitiineo:toJthe;na: tionat' authei•ity in the insurgent, Staten.— The opermious,of the general administra 41vmBureaus of the War .Department during thelsastlenr are detailed, and•tin' estimate . Made';Of the aOrepiiintiOns that.*ill,he.sez -quired' for ± military Ourpoaea., TERMS:-42,00 ih Advance, or $2,50 within the year year commencing the 30th day of June, 1866 The\ national military force on the Ist of May, 1865, numbered 1,000,516 men. It is proposed to reduce the military establish ment to a peace footing, comprehending fifty thousand troops of all arms, organized so as to admit of and enlargement by filling lip the ranks to eighty two thousand six hundred, if the circumstances of the coun try should require an augmentation of the army. The volunteer force has already been reduced by the discharge from service of over eight hundred thousand troops, and the Department is proceeding rapidly in tht work of further reduction. The war esti mates are reduced fr0m5516,240,131 to $33. 814,461, which amount, in the opinion of the Department, is adequate for a peace estab lishment. The measures of retrenchment in each Bureau and branch of the service ex hibit a diligent economy worthy of common dation. Re erence is also made in the re port to the necessity of providing for a uni form militia s; stein, and to the propriety of making suitable provission for wounded and disabled officers and soldiers, The revenue system of the country ism sub ject of vital interest to its honor and prosper ity, and should command the earnest consid eration of Congress. The Secretary of the Treasury will lay before you a full and de tailed report of the receipts and disburse ments of the last fiscal year, of the probable receipts and expenditures for the other three quarters, and the estimates for - the year fol lowing the 30th of June, 1866. I might content myself with a reference to that re port, in. which you will find all the informs tioncequired for your deliberations and deci sion. But the paramount', importance of the fillbinet so presses itself on my own mind, that I cannot but lay before you my views 0: the measures which are required for the good character, and, I might almost say. for the existence of this people. The lite of are public lies certainly in the energy, virtue, and intelligence of its citizens ; but it is equally true that a good revenue system is the life of an , rganized government. I meet you at a time when the nation has voluntari ly burdened itself with a debt unprecedented in our annals. Vast as is its amount, it fades away into nothing when compared with the counthss blessings that will be conferred up on our Country and upon man by the preser vation of the nation's life. Now, on the first occasion of the meeting of Congress since the rettr•n of peace, it is of the utmost impor tlinee to inaugurate a just policy, which shall at once he put in motion, and which shall commend itself to those who come after us for its continuance. We must,ahtat noth ing less than the complete effacement of the financial evils that necessarily followed a state of civil war. We must endeavor to apply the earliest remedy to the deranged state of the currency, and not shrink from devising a policy which, without being op pressive to tl e Inamed lately be gin to effect a reduction of the debt, and, if persisted in, discharge it fully Within - a de finitely fixed number of years. It is our first duty to prepare in earnest for our recovery from the ever-increasing evils of an irredeemable currency, without a sud den revulsion, and yet without untimely pro crastination. For that end, we must, each in our respective positions, prepare the way. I hold it the duty of the Executive to insist upon frugality in the expenditures; and:a sparing economy is itself a great national re source. Of the banks to which authority has been given to issue_notes secured by bonds of the United States we may require the greatest moderation and prudence, and the .law must be rigidly enforced when its limits are exceeded. We may, each one of us, counsel our active and enterprising coun trymen to be constantly on their guard, to liquidate debts contracted in a paper curren cy, and, by conducting business as nearly as possible on a system of cash payments or short credits, to hold themselves prepared to return to the standard of gold and silver. To aid our fellow-citizens in the prudent man agement of their monetary affairs, the duty devolves on us to diminish by law the a mount of paper money now in circulation. Five years ago the hank-note circulation of the country amounted to not much more than tWo hundred millions; now the circu lation, bank and national, exceeds seven hundred millions. Tho simple statement of the fact recommends more strongly than any words of mine could do, the necessity of our restraining this expansion. The gradual re duction of the currency is the only measure that can save th , business of the country from disastrous calamities; and this can bo almost imperceptibly accomplished by grad ually funding the Lational circulation in se curities that May be made redeemable at the pleasure of the Government. Our debt is doubly secure—first in the ac tual wealth and still greater undeveloped re sources of the country ; and next in the char acter of our institutions. The most intelli gent observers among political economists have not failed to remark, that the public debt of a country is safe in proportion as its people are free ; that the debt of a republic is the safeit of all. Our history confirms and establishes the theory, and is, I firmly be lieve, destined to give it a still ewe) signal illustration. The secret of this superiority springs not merely from the fact that in republic the national obligations are distri buted more widely through countless num bers in all classes of society ; it has its root in the character of our laws. More all men contribute to the public welfare, and bear their fair share of the publialurdens. DurL. ing the war, under the impulses of patrio tism, the mon of the great body of the.Pe,o ple, without regard to their own comparn-' tive want of wealth, thronged • to our armies and tilled our fleets of war, and held them selves ready, to offer their lives for the Pub lic good. . Now, in their turn, the property and income of the country, should hear their just proportion of the burden of taxation, while in dui impost system, ,through* means of 'which increased vitality is incidentally imparted to all th industrial interests of the nation, the duties shall be so adjusted as to fall 'most' heavily on• articles of luxury, leaving the necessaries; of , life as free from taxation as ,the absolute wants of 'the Gov ernment, economically administerek:Will justify. : , No • favored class shoUld demand freedom. from assessment, and: the taxes should Ito so distribqed at not to fallmoduly on the ppor;_hut,rat..er. on the :accumulated *oath 'of the country. We should loek.nt the national debt just as it is—not as a na tional blessing, but as a heavy burden on the industry of the country, to be discharged without unnecessary delay. • It is estimated by tha, Secretary of the Treasury that the expenditures for the fiscal year ending the 30th of June, 1866, will ex ceed the receipts $112,194,947. It is grati fying, however, to state that it is also esti• mated that the revenue for the year ending the 30th of June, 1867, will exceed-the ex penditures in the sum of $111,682,818. This amount, or so much as may be deemed suf ficient for the purpose, may be applied to the reduction of the public debt, which, 'on the 31st day of October, 1865, was $2,740,- .854,750. Every reduction will diminish the otal amount of interest to be paid, and so, tenlarge the means of still further reductions until the whole shall be liquidated ; and this, as will be seen from the estimates of the Sec retary of the Treasury, may be accomplished by annual payments even within a period not exceeding thirty years. I have faith that we shall do all this within a reasonable time; that, as we have amazed the world by the suppression of a civil war which was thought to be beyond the control of any Government, so we shall equally show the superiority of our institutions by the prompt and, faithful discharge of our national obligations. The Department of Agriculture, under its present direction, is aceo.r plishing I nueh in developing and utilizing the vast agricultu ral capabilities of the country, and for in formation respecting the details of its man agement, reference is made to the annual re port of the Commissioner. I have dwelt thus fully on our domestic affitirs because of their transcendent impor t,nce. Under any circumstances, our great, extent of territory and variety of climate, producing almost everything that is neces sary for the wants, and even the comforts or man, !mike US singularly ind..pendont of t h e varying policy of foreign Powers. and pro feet us again -t every temptation to ••entan2; ling alliances," while at the present mo meat the re-estald harmony, and the stn•ngth that comes win be our best security against "nation , who feel power and forget right.'' For myself. it has been and will Ine my constant aim to promote, peace and amity with all foreign nations and Powers : and I have every rea son to believe that th y all, without excep tion, are animated by the same disposition. Our relations with the Emperor of China, so recent in their origin. are most friendly. Our commerce with his dominions is receiv ing new developernents; and it is very pl -ris ing to find that the Gove'rntnent of that great empire.manifelst's satisfaCtion with our policy, and reposes':just confidence in the fairness which marks our intercourse. The unbroken harmony between the United States and the Emperor of Russia is receiv ing a new support fro in an enterprise de signed to carry telegraphic lines-across the continent of Asia, through his dominions, and so to connect us with all Europe by a new channel of intercourse. Our commerce with South America is about to receive en couragement by a direct line of mail steam ships to the rising Empire of Brazil. The distinguished party of men of science who have recently left our country to make a scientific exploration of the natural history and rivers and mountain ranges of that re gion. have received from the Emperor' that generous welcome which was to have he n expected from his constant friendship for the United States, and his well-known zeal in promoting the advancement of knowledge. A hope is entertain, d that our coimnoree with the rich and populous countries that border the 'Mediterranean sea may be large ly increased. Nothing will be wanting on the part of this Government, to extend the protection of our flag over the enterprise of our fellow-citizens. We receive from the Powers in that region assurances of good will; and it is worthy of note that a special envoy has brought us g messages of condo lence on the death of our Into Chief Magis trate from the Bey of Tunis, whose rule in cludes the old dominions of Carthage, an •the African coast. Our domestic ..ontest, now happily ended, hits left some traces in our relations with one at least of the great maritime Powers. The formal accordance of belligerent rights to the insurgent States was unprecedented, and has not been justified by the issue. But in the systems of neutrality pursued by the Powers which made that concession, there was a marked difference. The materials 'of war for the insurgent States were furnished in a great measure, from the workshops of Great Britain; and Brisish • ships, manned by British subjects, and prepared for receiv ing British armaments., sailed from the: ports of Groat Bribunte ft - lake war on A vier' lend' commerce, under the shelter of a corM, tnis,-ion from the insurgent States. These ships, having once escaped from British ports,. ever afterwards entered them in every . part of the world, to refit, and so to renew their depredations. The consequences of this conduct were most disastrous to the States - then in rebellion, increasing their des olation and misery by the prolongation of our civil contest. It had, moreover, the of feet, to a great extent, to drive the Ameri can flag from the sett,, and to transfer much 61• our shipping and our commerce to the very Power whose subjects had created the necessity for' such a change. These events., took place before I vas called to the admin istration of the Government. .The sincere' desire for peace by which I am animated led • mo to approve the proposal, already made,' to submit the questions which had thus arisen between the countries to arbitration. These questions are -3f such moment that theimtist have commanded the attention of the great Powers, and 'aro so interwoven with the peace•and interests of every one: of them as to have ensured an impartial deeisiCm; I ro-' grotto-inform you that -Great Britain de clined the arbitrament, but, on tho other hand: invited , us to the formation .of. a joirit.' - '6O . M . mission'to settle mutual claims between the' two countries, froM which those fOr the der. rogations before mentioned should be exclu ded. The proposition, in that very ttnsatis faetory-forrn, has been declined. ' : The United ,stutes did-not present thOenb ject as an impeachment .of the•goeilittith'of a Power ; which was. professing :thet most friendlY..divoitions, but asinvolving,ques'. tiene.ef .pohlie law, of whichtho.settlenierit is, ossontial ;, to: , she peace:•of though pecuniary roparatiOxklo their a • citizens would hitve followed incidentally oft a decision agttin.t Great . Britain,. such cbm pensition:Wat not their primary object;— They had, re liigher motive, and it was in the illterests'Of peace and justice to establish im portant principles of international law.— The correspondence will be placed before 0 you. The ground,en'whiCh the British Min ister rests his justification is,.*substrintially• that the municipal law of a nation, and the domestic interpretations of that law, are the measure of its duty as,a, n0141'131 , 1, and I feel bound to declare . 64.7 opinion, before yon'and before the world, that that justification can not be sustained before the tribunid of na tions. At the same time I do not advise to any present attempt at redress by acts of legislation. For the future, friendship be tween the two countries must rest on the ba sis of mutual justice. 'NO. 50 From the moment of the establishment of our free Constitution, the civilized world has been convulsed by revolutions in the in terest of democracy or of monarchy; but through all those revolutions the United States have wisely and firmly refused to be come propagandists of republicanism. It is the only government suited to our condition; but we have never sought to impose it on others; and we have consistently followed the advice of Washington to .recommend it only by the careful preservation and prudent use of the blessing. During all the interven ing period the policy of the European Pow ers and of the United States I as, on the whole, been harmonious. Twice, indeed, rumors of invasion of. some parts of America, in the interest of monarchy, have prevailed; twice icy pred - cessors have had occasion to announce the views of this nation in respect to. such interference. On both occasions the remonstrance of the United States wits re spected, from a deep conviction, on the part of European Governments, then the system of noninterference and mutual abstinence from propagandism was the true rule of the two hemispheres. Since those times we have advanced in wealth and power ; but we re tain the same purpose to leave the nations of Europe to choose their o4n dynasties•and Corm their own systems of government.— This consistent moderation may justly de mand a corresponding moderation. We should regard it as a great calamity to our selves, to the cause of good government, and to the peace of the world, should any Euro pean Power challenge the American people, a; it were, to the defence of republicanism against foreig'n interest once. We cannot foresee and are unwilling to consider what opportunities might present themselves, what combinations 'night idler to protect ourselves against design: ininairul to our form of goy , ',went. The United States desire te act in the lbture as they have ever acted hereto fere ; they never will be driven from that course but by the aggression of Eurepean Powers; and we rely on the wisdom and . justice .1 those Powers to respect the system of non-interference which has so long been time, and which, by it good results, has approved itself to both continents. The correspondence between the United States and France, in reference to questions which have become subjects of discussion between the two Governments, will, at a proper time, be laid before Congres. When, on the organization of our Govern ment, under the Constitution, the President of the United States delivered his inaugural address to the two Houses Of Congress, he said to them, and through them to the coun try and to mankind. that "the preservation of the sacred tire of liberty and the destiny of the republican model of government are -justly considered as-deeply, perhaps as final ly staked on the experiment intrusted to the American people."—And the House of Rep resentatives. answered Washington by the voice of Madison : "We adore the invisible band which has led the American people, through so many 'difficulties, to cherish a conscious responsibility for the destiny of re publican liberty." More than seventy-six years have glided away since these words were spoken ; the United States have pass ed through severer trials than were foreseen; and now, at; this new epoch in our existence as one nation, with our Unithi purified by sorrows, and strenglhed by conflict, and es tablished by the virtue of the people, the greatness of the occasion invites us once more to repeat, with solemnity, the pledges of our f titers to hold ourselves answerable before our fellonrien for the success of the repub lican form of government. Experience has proved its sufficiency in peace and in war : it has vindicated its authority through dan gers, and afflictions, and sudden and terrible emergencies, which would have crushed any system that had been less firmly fixed in the heart of the people. At the inauguration of Washington the foreign relations of the country were few, and its trade was repress ed by hostile regulations ; now all the civil ized nations of the globe welcome our com merce, and their Governments profess to wards us amity. Then our country felt its way hesitatingly along an untried path, with States so little bound together by rapid means of communication as to be hardly known to one another, and With historic traditions ex tending over very 'few years; now-inter course, between the States is swift and inti-' mate ; the experience of centuries has been crowded into a few 'generations, and has - ificaTEd an intense, indestructible nationality. Then our jurisdiction4l not reach beyond the inconvenient bouTidaries of the territory 'which had achieved.-independence ; now, through cessions of lands, first colonized b 7 Spain and Fiance, the cetintry . has ac quired a more complex character, and has fur its natural limits the chain of Lakes, the Gulf of Mexico, and on the east and the west the two great oceans. Other nations were wasted by civil wars for ages before they could establish for themselves the neces sary degree of unity ; the latent conviction that our form of Government is the best over known to the world, has enabled us to 'emerge from 'civil war within four years, with a comp'ete vindication Of the constitutional authority of the Gonqal Govan client, and with our local liberties and State institutions unimpaired. The throngs of emigrant that crowd to our shores are witnesses oftile con- Hidenco of all peoples - in our permatence. Here is the great land of free labor, • where industry is blessed with unexampled rewards, and the bread of the worbingman is sweet ened by the consciousness that the cause of the Country, "is his own cause, his•own safe ty; his own • dignity.'". Here every One : en joys the free use of his faculties and the choice of activity its a natural right. Here, under the combined influence of fruitful soil, genial "clinics; and happy institutions„ pOpulation has increased fifteen-fold within. • century. .11Cre,• • through 'the • easy development, of boundless resources, wealth has increased with two-fold, greater rapidity than numbers, so that•we have bpoome secure ,against the financiahvieissitudes of : c then countries,. and alike in business and , in ,opinion, aro self-con-' • . trod and truly independent. Hero more and . more cure is given ,to providc.ed,ueation2 for: ovary one born,oa.•our •Here religion,' released , from ; political , ,connetiton, with the . _civil-gnyerjainentrefuses ~tn'ltimerye ;the ($O4 Foul:i/t,•Pas") /ME