circuit judg s altogether, leaving the judicial | right in itself, but because I have been unwillfunctions wholly to the district courts and an independent Supreme Court. I respectfully recommend to the consideration of Congress the present condition of the statute laws, with the hope that Congress will be able to find an easy remedy for many of the inconveniences and evils which constantly embarrass those engaged in the practical administration of them. Since the organization of the Government, Congress has enacted some five thousand acts and joint resolutions, which fill more than six thousand closely printed pages, and are scattered through many volumes. Many of these acts have been drawn in haste, and without sufficient caution, so that their provisions are often obscure in themselves, or in conflict with each other, or at least so doubt ful as to render it very difficult for even the best informed persons to ascertain precisely what the statute law really is. ing to go beyond the pressure of necessity in the unusual exercise of power. But the powers of Congress I suppose are equal to the anomalous occasion, and therefore I refer the whole matter to Congress, with the hope that a plan may be devised for the administration of justice in all such parts of the insurgent States and Territories as may be under the control of this Government, whether by a voluntary return to allegiance and order, or by the power of our arms. This, however, not to be a permanent institution, but a temporary substitute, and to cease as soon as the ordinary courts can be re-established in peace. It is important that some more convenient means should be provided, if possible, for the adjustment of claims against the Government, especially in view of their increased number by reason of the war. It is as much the duty of Government to render prompt justice against itIt seems to me very important that the statute self, in favor of citizens, as it is to administer laws should be made as plain and intelligible the same between private individuals. The inas possible, and be reduced to as small a com-vestigation and adjudication of claims, in their pass as may consist with the fullness and pre-nature belong to the judicial department; becision of the will of the legislature, and the sides, it is apparent that the attention of Conperspicuity of its language. This, well done, gress will be more than usually engaged, for some would, I think, greatly facilitate the labors of time to come, with great national questions. It those whose duty it is to assist in the adminis- was intended by the organization of the Court tration of the laws, and would be a lasting of Claims mainly to remove this branch of busi benefit to the people, by placing before them, ness from the Halls of Congress; but while the in a more accessible and intelligible form the court has proved to be an effective and valuable laws which so deeply concern their interest and means of investigation, it in a great degree fails their duties. to effect the object of its creation, for want of I am informed by some whose opinions I re-power to make its judgments final. spect that all the acts of Congress now in force, Fully aware of the delicacy, not to say the and of a permanent and general nature, might danger, of the subject, I commend to your care. be revi ed and rewritten, so as to be embraced ful consideration whether this power of making in one volume (or at most two volumes) of or- judgments final may not properly be given to dinary and convenient size. And I respectfully the court, reserving the right of appeal on recommend to Congress to consider of the sub-questions of law to the Supreme Court, with ject, and, if my suggestion be approved, to de- such other provisions as experience may have vise such plan as to their wisdom shall seem shown to be necessary. most proper for the attainment of the end proposed. One of the unavoidable consequences of the present insurrection is the entire suppression, in many places, of all the ordinary means of administering civil justice by the officers, and in the forms of existing law. This is the case, in whole or in part, in all the insurgent States; and as our armies advance upon and take possession of parts of those States, the practical evil becomes more apparent. There are no courts nor officers to whom the citizens of other States may apply for the enforcement of their lawful claims against citizens of the insurgent States; and there is a vast amount of debt constituting such claims. Some have estimated it as high as $200,000,000, due, in large part, from insurgents, in open rebellion, to loyal citizens, who are, even now, making great sacrifices in the discharge of their patriotic duty to support the Government. Under these circumstances, I have been urgently solicited to establish, by military power, courts to administer summary justice in such cases. I have thus far declined to do it, not because I had any doubt that the end proposed -the collection of the debts-was just and I ask attention to the report of the Postmaster General, the following being a summary statement of the condition of the Department: The revenue from all sources during the fiscal year ending June 30, 1861, including the annual permanent appropriation of $700,000 for the transportation of free mail matter, was $9,049,296 40, being about two per cent. less than the revenue for 1860. The expenditures were $13,606,750 11, show-ing a decrease of more than eight per cent. as compared with those of the previous year, and leaving an excess of expenditure over the revenue for the last fiscal year of $4,557,462 71. The gross revenue for the year ending June 30, 1863, is estimated at an increase of four per cent on that of 1861, making $8,683,000, to which should be added the earnings of the Department in carrying free matter, viz: $700,000, making $9,383,000. The total expenditures for 1863 are estimated at $12,528,000, leaving an estimated deficiency of $3,145,000, to be supplied from the Treasury, in addition to the permanent appropriation. The present insurrection shows, I think, that the extension of this District across the Potomac river, at the time of establishing the capi. tal here, was eminently wise, and consequently that the relinquishment of that portion of it which lies within the State of Virginia was unwise and dangerous. I submit for your consideration the expediency of regaining that part of the District, and the restoration of the original boundaries thereof, through negotiations with the State of Virginia. The report of the Secretary of the Interior, with the accompanying documents, exhibits the condition of the several branches of the public business pertaining to that Department. The depressing influences of the insurrection have been especially felt in the operations of the Patent and General Land Offices. The cash receipts from the sales of public lands during the past year have exceeded the expenses of our land system only about two hundred thousand dollars. The sales have been entirely suspended in the southern States, while the interruptions to the business of the country, and the diversion of large numbers of men from labor to military service, have obstructed settlements in the new States and Territories of the Northwest. all hostile demonstrations, and resume their former relations to the Government. Agriculture, confessedly the largest interest of the nation, has, not a department, nor a bureau, but a clerkship only, assigned to it in the Government. While it is fortunate that this great interest is so independent in its na. ture as to not have demanded or extorted more from the Government, I respectfully ask Congress to consider whether something more cannot be given voluntarily, with general advantage. Annual reports, exhibiting the condition of our agriculture, commerce, and manufactures would present a fund of information of great practical value to the country. While I make no suggestions as to details, I venture the opinion that an agricultural and statistical bureau might profitably be organized. The execution of the laws for the suppression of the African slave trade has been confided to the Department of the Interior. It is a subject of gratulation that the efforts which have been made for the suppression of this inhuman traffic have been recently attended with unusual The receipts of the Patent Office have declined success. Five vessels being fitted out for the in nine months about one hundred thousand slave trade have been seized and condemned. dollars, rendering a large reduction of the force Two mates of vessels engaged in the trade, and employed necessary to make it self-sustaining. one pe son in equipping a vessel as a slaver, The demands upon the Pension Office will be have been convicted and subjected to the penlargely increased by the insurrection. Numer-alty of fine and imprisonment, and one captain, ous applications for pensions, based upon the casualties of the existing war, have already been made. There is reason to believe that many who are now upon the pension rolls, and in receipt of the bounty of the Government, are The Territories of Colorado, Dakotah, and in the ranks of the insurgent army, or giving Nevada, created by the last Congress, have been them aid and comfort. The Secretary of the organized, and civil administration has been Interior has directed a suspension of the pay-inaugurated therein under auspices especially ment of the pensions of such persons upon proof of their disloyalty. I recommend that Congress authorize that officer to cause the names of such persons to be stricken from the pension rolls. taken with a cargo of Africans on board his vessel, has been convicted of the highest grade of offence under our laws, the punishment of which is death. gratifying, when it is considered that the leaven of treason was found existing in some of these new countries when the Federal officers arrived there. evidence the patriotic spirit of the people of the Territory. So far the authority of the United States has been upheld in all the Territories, as it is hoped it will be in the future. I commend their interests and defence to the enlightened and generous care of Congress. The abundant natural resources of these The relations of the Government with the Territories, with the security and protection Indian tribes have been greatly disturbed by afforded by organized government, will doubtthe insurrection, especially in the southern less invite to them a large immigration when superintendency and in that of New Mexico. peace shall restore the business of the country The Indian country south of Kansas is in the to its accustomed channels. I submit the respossession of insurgents from Texas and Ar-olutions of the Legislature of Colorado, which kansas. The agents of the United States, appointed since the 4th of March, for this superintendency have been unable to reach their posts, while the most of those who were in office before that time have espoused the insurrectionary cause, and assume to exercise the powers of agents by virtue of commissions I recommend to the favorable consideration from the insurrectionists. It has been stated of Congress the interests of the District of Coin the public press that & portion of those In-lumbia. dians have been organized as a military force, and are attached to the army of the insurgents. Although the Government has no official information upon this subject, letters have been written to the Commissioner of Indian Affairs by several prominent chiefs, giving assurance of their loyalty to the United States, and expressing a wish for the presence of Federal troops to protect them. It is believed that upon the repossession of the country by the Federal forces the Indians will readily cease The insurrection has been the cause of much suffering and sacrifice to its inhabitants, and as they have no representative in Congress, that body should not overlook their just claims upon the Government. At your late session a joint resolution was adopted authoriz ng the President to take measures for facilitating a proper representation of the industrial interests of the United States at the exhibition of the industry of all nations to 'be holden at London in the year 1862. I regret to say I have been unable to ture. give personal attention to this subject-a sub- | to the more deliberate action of the Legislaject at once so interesting in itself, and so extensively and intimately connected with the material prosperity of the world. Through the Secretaries of State and of the Interior a plan, or system, has been devised, and partly matured, and which will be laid before you. In the exercise of my best discretion I have adhered to the blockade of the ports held by the insurgents, instead of putting in force, by proclamation, the law of Congress enacted at the late session for closing those ports. Under and by virtue of the act of Congress So, also, obeying the dictates of prudence, as entitled "An act to confiscate property used well as the obligations of law, instead of tranfor insurrectionary purposes," approved Au- scending, I have adhered to the act of Congress gust 6, 1861, the legal claims of certain persons to confiscate property used for insurrectionary to the labor and service of certain other per- purposes. If a new law upon the same : ubject sons have become forfeited; and numbers of shall be proposed, its propriety will be duly the latter, thus liberated, are already depend- considered. The Union must be preserved; ent on the United States, and must be provided and hence, all indispensable means must be for in some way. Besides this, it is not impos-employed. We should not be in haste to detersible that some of the States will pass similar mine that radical and extreme measures, which enactments for their own benefit respectively, may reach the loyal as well as the disloyal, are and by operation of which, persons of the same indispensable. class will be thrown upon them for disposal. In such case, I recommend that Congress provide for accepting such persons from such States, according to some mode of valuation, in lieu, pro tanto of direct taxes, or upon some other plan to be agreed on with such States respectively; that such persons, on such acceptance by the General Government, be at once deemed free; and that, in any event, steps be taken for colonizing both classes (or the one first mentioned, if the other shall not be brought into existence,) at some place, or places, in a climate congenial to them. It might be well to consider, too, whether the free colored people already in the United States could not, so far as individuals may desire, be included in such colonization. To carry out the plan of colonization may involve the acquiring of territory, and also the appropriation of money beyond that to be expended in the territorial acquisition. Having practiced the acquisition of territory for nearly sixty years, the question of constitutional power to do so is no longer an open one with us. The power was questioned at first by Mr. Jefferson, who, however, in the purchase of Louisiana, yielded his scruples on the plea of great expediency. If it be said that the only legitimate object of acquiring territory is to furnish homes for white men, this measure effects that object; for the emigration of colored men leaves additional room for white men remaining or coming here. Mr. Jefferson, however, placed the importance of procuring Louisiana more on political and commercial grounds than on providing room for population. The inaugural address at the beginning of the Administration, and the message to Congress at the late special session, were both mainly devoted to the domestic controversy out of which the insurrection and consequent war have sprung. Nothing now occurs to add or subtract, to or from, the principles, or general purposes, stated and expressed, in those documents. The last ray of hope for preserving the Union peaceably expired at the assault upon Fort Sumter; and a general review of what has occurred since may not be unprofitable. What was painfully uncertain then, is much better defined and more distinct now; and the progress of events is plainly in the right direction. The insurgents confidently claimed a strong support from North of Mason and Dixon's line, and the friends of the Union were not free from apprehension on the point. This, however, was soon settled definitely, and on the right side. South of the lice, noble little Delaware led off right from the first. Maryland was made to seem against the Union. Our soldiers were assaulted, bridges were burned, and railroads torn up within her limits, and we were many days, at one time, without the ability to bring a single regiment over her soil to the capital. Now her bridges and railroads are repaired and open to the Government; she already gives seven regiments to the cause of the Union, and none to the enemy; and her people, at a regular clection, have sustained the Union, by a larger majority, and a larger aggregate vote than they ever before gave to any candidate or any question. Kentucky, too, for some time in doubt, is now decidedly, and, I think, unchangeably, ranged on the side of the Union. Missouri is comparatively quiet, and I believe cannot again be overrun by the insurrectionists. These three States of Maryland, Kentucky, and Missouri, The war continues. In considering the pol- neither of which would promise a single solicy to be adopted for suppressing the insurrec-dier at first, have now an aggregate of not less tion, I have been anxious and careful that the inevitable conflict for this purpose shall not degenerate into a violent and remorseless revolutionary struggle. I have, therefore, in every case, thought it proper to keep the integrity of the Union prominent as the primary object of the contest on our part, leaving all questions which are not of vital military importance On this whole proposition, including the appropriation of money with the acquisition of territory, does not the expediency amount to absolute necessity-that, without which the Government itself cannot be perpetuated? than forty thousand in the field for the Union; while, of their citizens, certainly not more than a third of that number, and they of doubtful whereabouts, and doubtful existence, are in arms against it. After a somewhat bloody struggle of months, winter closes on the Union people of Western Virginia, leaving them masters of their own country. An insurgent force of about fifteen hundred, | general tone of the insurgents. In those docufor months dominating the narrow peninsula ments we find the abridgment of the existing region, constituting the counties of Accomac right of suffrage, and the denial to the people and Northampton, and known as eastern shore of all right to participate in the selection of of Virginia, together with some contiguous public officers, except the legislative, boldly parts of Maryland, have laid down their arms; advocated, with labored arguments to prove and the people there have renewed their alle- that large control of the people in government giance to, and accepted the protection of, the is the source of all political evil. Monarchy old flag This leaves no armed insurrectionist itself is sometimes hinted at as a possible north of the Potomac, or east of the Chesapeake. refuge from the power of the people. Also we have obtained a footing at each of the isolated points, on the southern coast, of Hatteras, Port Royal, Tybee Island, near Savannah, and Ship Island; and we likewise have some general accounts of popular movements, in behalf of the Union, in North Carolina and Tennessee. In my present position, I could scarcely be justified were I to omit raising a warning voice against this approach of returning despotism. It is not needed, nor fitting here, that a general argument should be made in favor of popular institutions; but there is one point, with its connections, not so hackneyed as most others, to which I ask brief attention. It is the effort to place capital on an equal footing with, if not above, labor, in the structure of These things demonstrate that the cause of the Union is advancing steadily and certainly Southward. Since your last adjournment, Lieutenant Gen-government. It is assumed that labor is availeral Scott has retired from the head of the Army. During his long life, the nation has not been unmindful of his merit; yet, on calling to mind how faithfully, ably, and brilliantly he has served the country, from a time far back in our history, when few of the now living had been born, and thenceforward continually, I cannot but think we are still his debtors. I submit, therefore, for your consideration, what further mark of recognition is due to him and to ourselves, as a grateful people. With the retirement of General Scott came the executive duty of appointing, in his stead, a General-in-Chief of the Army. It is a fortunate circumstance that neither in council nor country was there, so far as I know, any difference of opinion as to the proper person to be selected. The retiring chief repeatedly expressed hi judgment in favor of General McClellan for the position; and in this the nation seemed to give a unanimous concurrence. The designation of General McClellan is, therefore, in considerable degree, the selection of the country as well as of the Executive; and hence there is better reason to hope there will be given him the confidence and cordial support thus, by fair implication, promised, and without which, he cannot, with so full efficiency, serve the country. able only in connection with capital; that nobody labors unless somebody else, owning capital, somehow by the use of it, induces him to labor. This assumed, it is next considered whether it is best that capital shall hire laborers, and thus induce them to work by their own consent, or buy them, and drive them to it without their consent. Having proceeded so far, it is naturally concluded that all laborers are either hired laborers, or what we call slaves. And further, it is assumed that whoever is once a hired laborer is fixed in that condition for life. Now, there is no such relation between capital and labor as assumed; nor is there any such thing as a free man being fixed for life, in the condition of a hired laborer. Both these assumptions are false, and all inferences from them are groundless. Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. Capital has its rights, which are as worthy of protection as any other rights. Nor is it denied that there is, and probably always will be, a relation between labor and capital, producing mutual benefits. The error is in assuming that It has been said that one bad general is bet- the whole labor of community exists within ter than two good ones; and the saying is true, that relation. A few men own capital, and if taken to mean no more than that an army is that few avoid labor themselves, and with their better directed by a single mind, though in-capital hire or buy another few to labor for ferior, than by two superior ones at variance, and cross-purposes with each other. And the same is true, in all joint operations wherein those engaged, can have none but a common end in view, and can differ only as to the choice of means. In a storm at sea, no one on board can wish the ship to sink; and yet, not unfrequently, all go down together, because too many will direct, and no single mind can be allowed to control. It continues to develop that the insurrection is largely, if not exclusively, a war upon the first principle of popular government-the rights of the people. Conclusive evidence of this is found in the most grave and maturely considered public documents, as well as in the them. A large majority belong to neither cla-s -neither work for others, nor have others working for them. In most of the southern States, a majority of the whole people of all colors are neither slaves nor masters; while in the northern, a large majority are neither hirers nor hired. Men with their families-wives, sons, and daughters-work for themselves, on their farms, in their houses, and in their shops, taking the whole product to themse ves, and asking no favors of capital on the one hand, nor of hired laborers or slaves on the other. It is not forgotten that a considerable number of persons mingle their own labor with capitalthat is they labor with their own hands, and also buy or hire others to labor for them; but ADMINISTRATION OF ABRAHAM LINCOLN. this is only a mixed, and not a distinct class. | as we are, might reasonably have apprehended. No principle stated is disturbed by the exist- Again, as has already been said, there is not, of necessity, any such thing as the free hired laborer being fixed to that condition for life. Many independent men everywhere in these States, a few years back in their lives, were hired laborers. The prudent, penniless beginner in the world labors for wages awhile, saves a surplus for which to buy tools or land for himself, then labors on his own account another while, and at length hires another new beginner to help him. This is the just and generous and prosperous system, which opens the to all, gives hope to all, and consequent energy and progress, and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty-none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which, if surrendered, will surely be used to close the door of advancement against such as they, and to fix new disabilities and burdens upon them, till all of liberty shall be lost. way From the first taking of our national census to the last are seventy years; and we find our population at the end of the period eight times as great as it was at the beginning. The increase of those other things which men deem desirable has been even greater. We thus have, at one view, what the popular principle applied to government, through the machinery of the States and the Union, has produced in a given time, and also what, if firmly maintained, it promises for the future. There are already among us those who, if the Union be preserved, will live to see it contain two hundred and fifty millions. The struggle, of to-day is not altogether for to-day-it is for a vast future also. With a reliance on Providence, all the more firm and earnest, let us proceed in the great task which events have devolved upon us. ABRAHAM LINCOLN. WASHINGTON, December 3, 1861. President Lincoln's Second Annual Fellow-citizens of the Senate and House of Representatives: Since your last annual assembling another year of health and bountiful harvests has passed. And while it has not pleased the Almighty to bless us with a return of peace, we can but press' on, guided by the best light He gives us, trusting that in His own good time, and wise way, all will yet be well. The correspondence touching foreign affairs which has taken place during the last year is herewith submitted, in virtual compliance with a request to that effect made by the House of Representatives near the close of the last session of Congress. If the condition of our relations with other nations is less gratifying than it has usually been at former periods, it is certainly more satisfactory than a nation so unhappily distracted In the month of June last there were some which, at the beginning of our domestic diffigrounds to expect that the maritime powers culties, so unwisely and unnecessarily, as we think, recognized the insurgents as a belligerent, would soon recede from that position, which has proved only less injurious to them. selves than to our own country. porary reverses which afterwards befell the But the temnational arms, and which were exaggerated by delayed that act of simple justice. our own disloyal citizens abroad, have hitherto for the moment, the occupations and habits of pression of the slave trade has been put into The convention with Hanover for the abolition of the stade dues has been carried into full effect, under the act of Congress for that pur pose. A blockade of three thousand miles of seaenforced, in a season of great commercial accoast could not be established, and vigorously tivity like the present, without committing occasional mistakes and inflicting unintentional injuries upon foreign nations and their subjects. foreigners reside and carry on trade under A civil war occurring in a country where complaints of the violation of neutral rights. treaty stipulations, is necessarily fruitful of All such collisions tend to excite misapprehensions, and possibly to produce mutual reclamations between nations which have a common interest in preserving peace and friendship. In sible, heard and redressed complaints which clear cases of these kinds I have, so far as poshave been presented by friendly Powers. There is still, however, a large and an augmenting number of doubtful cases upon which the Gov. |