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meeting the demands contemplated by them, | mendation of the Secretary for a more perfect will be submitted to Congress by the Secretary organization of the navy by introducing adof the Treasury. It is gratifying to know that ditional graces in the service. the expenditures made necessary by the rebel- The present organization is defective and unlion are not beyond the resources of the loyal satisfactory, and the suggestions submitted by people, and to believe that the same patriotism the Department will, it is believed, if adopted, wbich bas thus far sustained the Government obviate the difficulties alluded to, promote will continue to susta n it till peace and union harmony, and increase the efficiency of the shall again bless the land.

Navy. I respectfully refer to the report of the Secre- There are three vacancies on the bench of tary of War for information respecting the nu- the Supreme Court--two by the decease of Jus. merical strength of the Army, and for recom- tices Daniel and McLean, and one by the resigmendations baving in view an increase of its nation of Justice Campbell. I have so far forefficiency and the well-being of the various borne making nominations to fill these vacarcies branches of the service intrusted to his care. for reasons which I will now state. Two of the It is gratifying to know that the patriotism of outgoing judges resided within the State now the people has proved equal to the occasion, overrun by revolt; so that if successors were and that the number of troops tendered greatly appointed in the same localities, they could not exceeds the force which Congress autborized now serve upon their circuits; and many of the me to call into the field.

most competent men there probably would not I refer with pleasure to those portions of his take the persoval hazard of accepting to serve, report which make allusion to the creditable even here, upon the supreme bench. I have degree of discipline already attained by our been unwilling to throw all the appointments troops, and to the excellent sanitary condition northward, thus disabling myself from doing of the entire army.

justice to the South on the return of peace; alThe recommendation of the Secretary for an though I may remark that to transfer to the organization of the militia upon a uniform North one which has heretofore been in the basis, is a subject of vital importance to the South, would not, with reference to territory future safety of the country, and is commended and population, be unjust. to the serious attention of Congress.

During the long and brilliant judicial career The large addition to the regular army, in of Judge McLean his circuit grew into an emconnection with the defection that has so con- pire—altogether too large for any one judge to siderably diminished the number of its officers, give the courts therein more than a nominal gives peculiar importance to his recommenda-attendance-rising in population from one miltion for increasing the corps of cadets to the lion four hundred and seventy thousand and greatest capacity of the Military Academy, eighteen, in 1830, to six million one hundred

By mere omission, I presume, Congress bas and fifty-one thousand four hundred and five in failed to provide chaplains for hospitals occu- 1860. pied by volunteers. This subject was brought Besides this, the country generally has out. to my notice, and I was induced to draw up grown our present judicial system. If uniformthe form of a letter, one copy of which, ity was at all intended, the system requires properly addressed, has been delivered to each that all the States shall be accommodated with of the persons, and at the dates respectively circuit courts attended by supreme judges, named and stated, in a schedule, containing while, in fact, Wisconsin, Minnesota, Iowa, Kanalso the form of the letter, marked A, and sas, Florida, Texas, California, and Oregon, herewith transmitted.

have never had any such courts. Nor can this These gentlemen, I understand, entered upon well be remedied without a change of the systhe duties designated, at the times respectively tem; because the adding of judges to the Sustated in the schedule, and have labored faith-preme Court, enough for the accommodation of fully therein ever since. I therefore recom- all parts of the country, with circuit courts, mend that they be compensated at the same would create a court altogether too numerous rate as chaplains in the army. I further sug- for a judicial body of any sort. And the evil, gest that general provision be made for chap- if it be one, will increase as new States come lains to serre in hospitals, as well as with into the Union. Circuit courts are useful, or regiments.

they are not useful. If useful, no State should The report of the Secretary of the Navy pre- be denied them; if not useful, no State should sents in detail the operations of that branch of have them. Let them be provided for all, or the service, the activity and energy which have abolished as to all. characterized its administration, and the re- Three modifications occur to me, either of sults of measures to increase its efficiency and which, I think, would be an improvement upon power. Such bave been the additions, by con- our present system. Let the Supreme Court struction and purchase, that it may almost be be of convenient number in every event. Then, said a navy has been created and brought into first, let the whole country be divided into cirservice since our difficulties commenced. cuits of convenient size, the supreme judges to

Besides blockading our extensive coast, serve in a number of them corresponding to squadrons larger than ever before assembled their own number, and independent circuit ander our flag have been put afloat and per- judges be provided for all the rest. Or, secformed deeds which have increased our naval ondly, let the supreme judges be relieved from renown.

circuit duties, and circuit judges be provided I would invite special attention to the recom- for all the circuits. Or, thirdly, dispense with

circuit judg“s altogether, leaving the judicial | right in itself, but because I have been unwill. functions wholly to the district courts and an ing to go beyond the pressure of necessity ia independent Supreme Court.

the unusual exercise of power. But the powI respectfully recommend to the considera- ers of Congress I suppose are equal to the anom. tion of Congress the present condition of the alous occasion, and therefore I refer the whole statute laws, with the hope that Congress will matter to Congress, with the hope that a plan be able to find an easy remedy for many of the may be devised for the administration of jusinconveniences and evils which constantly em- tice in all such parts of the insurgent States barrass those engaged in the practical admin- and Territories as may be under the control of istration of them. Since the organization of this Government, whether by a voluntary rethe Government, Congress has enacted some turn to allegiance and order, or by the power five thousand acts and joint resolutions, which of our arms. This, however, not to be a perfill more than six thousand closely printed manent institution, but a temporary substitute, pages, and are scattered through many volumes. and to cease as soon as the ordinary courts can Many of these acts have been drawn in baste, be re-established in peace. and without sufficient caution, so that their It is important that some more convenient provisions are often obscure in themselves, or means should be provided, if possible, for the in conflict with each other, or at least so doubt adjustment of claims against the Government, ful as to render it very difficult for even tho especially in view of their increased number by best informed persons to ascertain precisely reason of the war. It is as much the duty of what the statute law really is.

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 in as possible, and be reduced to as small a com- vestigation and adjudication of claims, in tlicir 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 busibenefit 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 pro- I ask attention to the report of the Postmas. posed.

ter General, the following being a summary One of the unavoidable consequences of the statement of the condition of the Department: present insurrection is the enti e suppression, The revenue from all sources during the fiscal in many places, of all the ordinary means of year ending June 30, 1861, including the annual administering civil justice by the officers, and permanent appropriation of $700,000 for the in the forms of existing law. This is the case, transportation of free mail matter, was $9.049,in whole or in part, in all the insurgent States; 296 40, being about two per cent. less than the and as our armies advance upon and take pos- revenue for 1860. session of parts of those States, the practical The expenditures were $13,606,750 11, showevil becomes more apparent. There are no ing a decrease of more than eight per cent, as courts nor officers to whom the citizens of other compared with those of the previous year, and States may apply for the enforcement of their leaving an excess of expenditure over the reve. lawful claims against citizens of the insurgent nue for the last fiscal year of $4,557,462 71. States; and there is a vast amount of debt con- The gross revenue for the year ending June stituting such claims. Some have estimated it 30, 1863, is estimated at an increase of four per as high as $200,000,000, due, in large part, cent on that of 1861, making $8,683,000, to from insurgents, in open rebellion, to loyal cit- which should be added the earnings of the Deizens, who are, even now, making great sacri-partment in carrying free matter, viz: $700,000, fices in the discharge of their patriotic duty to making $9,383,000. support the Government.

The total expenditures for 1863 are estimated Under these circumstances, I have been ur- at $12,528,000, leaving an estimated deficiency gently solicited to establish, by military power, of $3,145,000, to be supplied from the Treas. courts to administer summary justice in such ury, in addition to the permanent appropriation.

I have thus far declined to do it, not The present insurrection shows, I think, that because I had any doubt that the end proposed the extension of this District across the Poto-the collection of the debts-was just and mac river, at the time of establishing the capi. tal bere, was eminently wise, and consequently all hostile demonstrations, and resume their that the relinquishment of that portion of it former relations to the Government. which lies within the State of Virginia was un- Agriculture, confessedly the largest interest wise and dangerous. I submit for your consid- of the nation, has, not a department, nor a eration the expediency of regaining that part bureau, but a clerkship only, assigned to it in of the District, and the restoration of the origi- the Government. While it is fortunate that nal boundaries thereof, through negotiations this great interest is so independent in its na. with the State of Virginia.

cases.

ture as to not have demanded or extorted more The report of the Secretary of the Interior, from the Government, I respectfully ask Conwith the accompanying documents, exhibits the gress to consider whether something more cancondition of the several branches of the public not be given voluntarily, with general adbusiness pertaining to that Department. The vantage. depressing influences of the insurrection have Annual reports, exhibiting the condition of been especially felt in the operations of the our agriculture, commerce, and menufactures Patent and General Land Offices. The cash would present a fund of information of great receipts from the sales of public lands during practical value to the country. While I make the past year have exceeded the expenses of no suggestions as to details, I venture the oor land system only about two hundred thou- opinion that an agricultural and statistical sand dollars. The sales have been entirely bureau might profitably be organized. suspended in the southern States, while the in- The execution of the laws for the suppression terruptions to the business of the country, and of the African slave trade bas been confided to tbe diversion of large numbers of men from la- the Department of the Interior. It is a subject bor to military service, have obstructed settle of gratulation that the efforts which have been ments in the new States and Territories of the made for the suppression of this inhuman trafNorthwest.

fic 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 taken with a cargo of Africans on board his casualties of the existing war, have already vessel, has been convicted of the bighest grade been made. There is reason to believe that of offence under our laws, the punishment of many who are now upon the pension rolls, and which is death. 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 ibem 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 gratifying, when it is considered that the leaven proof of their disloyalty. I recommend that of treason was found existing in some of these Congress authorize that officer to cause the new countries when the Federal officers arrived Dames of such persons to be stricken from the there. pension rolls.

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, ap- evidence the patriotic spirit of the people of the pointed since the 4th of March, for this super- Territory. So far the authority of the United intendency have been unable to reach their States has been upheld in all the Territories, as pists, wbile the most of those who were in it is hoped it will be in the future. I commend office before that time have espoused the insur- their interests and defence to the enlightened rectionary cause, and assume to exercise the and generous care of Congress. 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. The insurrection has been the cause dians have been organized as a military force, of much suffering and sacrifice to its inhabitand are attached to the army of the insurgents. ants, and as they have no representative in ConAlthough the Government has no official infor- gress, that body should not overlook their just bation upon this subject, letters have been claims upon the Government. written to the Commissioner of Indian Affairs At your late session a joint resolution was by several prominent chiefs, giving assurance adopted authorizing the President to take of their loyalty to the United States, and ex- measures for facilitating a proper representapressing a wish for the presence of Federal tion of the industrial interests of the United troops to protect them. It is believed that States at the exhibition of the industry of all upon the repossession of the country by the nations to be holden at London in the year Federal forces the Indians will readily cease 1862. I regret to say I have been unable to

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give personal attention to this subject—a sub- to the more deliberate action of the Legisla. ject at once so interesting in itself, and so ex- ture. tensively and intimately connected with the In the exercise of my best discretion I have material prosperity of the world. Through the adhered to the blockade of the ports held by Secretaries of State and of the Interior a plan, the insurgents, instead of putting in force, by or system, has been devised, and partly ma- proclamation, the law of Congress enacted at tured, and which will be laid befure you. the late session for closing those ports.

Under and by virtue of the ct 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 subject 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. The inaugural address at the beginning of In such case, I recommend that Congress pro- the Administration, and tbe message to Con. vide for accepting such persons from such gress at the late special session, were both States, according to some mode of valuation, in mainly devoted to the domestic controversy out lieu, pro tanto of direct taxes, or upon some of which the insurrection and consequent war other plan to be agreed on with such States have sprung. Nothing now occurs to add or respectively; that such persons, on such ac- subtract, to or from, the principles, or general ceptance by the General Government, be at purposes, stated and expressed, in those docuonce deemed free; and that, in any event, steps ments. be taken for colonizing both classes (or the one The last ray of hope for preserving the Union first mentioned, if the other shall not be brought peaceably expired at the assault upon Fort into existence,) at some place, or places, in a Sumter; and a general review of whet has occlimate congenial to them. It might be well curred since may not be unprofitable. What to consider, too, whether the free colored peo- was painfully uncertain then, is much better ple already in the United States could not, so defined and more distinct now; and the progress far as individuals may desire, be included in of events is plainly in the right direction. The such colonization.

insurgents confidently claimed a strong support To carry out the plan of colonization may from North of Mason and Dixon's line, and the involve the acquiring of territory, and also the friends of the Union were not free from appreappropriation of money beyond that to be ex- hension on the point. This, however, was soon pended in the territorial acquisition. Having settled definitely, and on the right side. South practiced the acquisition of territory for nearly of the lice, noble little Delaware led off right sixty years, the question of constitutional power from the first. Maryland was made to seem to do so is no longer an open one with us. The against the Union. Our soldiers were assaulted, power was questioned at first by Mr. Jefferson, bridges were burned, and railroads torn up who, however, in the purchase of Louisiana, within her limits, and we were many days, at yielded his scruples on the plea of great expe- one time, without the ability to bring a single diency. If it be said that the only legitimate regiment over her soil to the capital. Now her object of acquiring territory is to furnish homes bridges and railroads are repaired and open to for white men, this measure effects that object; the Government; she already gives seven regi. for the emigration of colored men leaves addi- ments to the cause of the Union, and none to tional room for white men remaining or coming the enemy; and her people, at a regular elechere. Mr. Jefferson, however, placed the im- tion, have sustained the Union, by a larger maportance of procuring Louisiana more on polit- jority, and a larger aggregate vote than they ical and commercial grounds than on providing ever before gave to any candidate or any quesroom for population.

tion. Kentucky, too, for some time in doubt, On this whole proposition, including the ap- is now decidedly, and, I think, unchangeably, propriation of money with the acquisition of ranged on the side of the Union. Missouri is territory, does not the expediency amount to comparatively quiet, and I believe cannot again absolute necessity—that, without which the be overrun by the insurrectionists. These three Government itself cannot be perpetuated ? 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 than forty thousand in the field for the Union; inevitable conflict for this purpose shall not while, of their citizens, certainly not more than degenerate into a violent and remorseless revo- a third of that number, and they of doubtful lutionary struggle. I have, therefore, in every whereabouts, and doubtful existence, are in case, thought it proper to keep the integrity of arms against it. After a somewhat bloody the Union prominent as the primary object of struggle of months, winter closes on the Union the contest on our part, leaving all questions people of Western Virginia, leaving them mas. wbich are not of vital military importance ters of their own country.

An insurgent force of about fifteen hundred, / general tone of the insurgents. In those docu. for 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 othicers, except the legislative, buldly 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 In my present position, I could scarcely be the isolated points, on the southern coast, of justified were I to omit raising a warning voice Hatteras, Port Royal, Tybee Island, near Sa- agninst this approach of returning despotism. vannab, and Ship Island; and we likewise have It is not needed, nor fitting here, that a some general accounts of popular movements, general argument should be made in favor of in behalf of the Union, in North Carolina and popular institutions; but there is one point, Tennessee.

with its connections, not so hackneyed as most These things demonstrate that the cause of otbers, to which I ask brief attention. It is the Union is advancing steadily and certainly the effort to place capital on an equal footing southward.

with, if not above, labor, in the structure of Since your last adjournment, Lieutenant Gen-government. It is assumed that labor is availeral Scott has retired from the head of the able only in connection with capital ; that noArmy. During his long life, the nation has not body labors unless somebody else, owning been unmindful of his merit; yet, on calling to capital, somehow by the use of it, induces him mind how faithfully, ably, and brilliantly he to labor. This assumed, it is next considered has served the country, from a time far back in whether it is best that capital shall hire our history, when few of the now living had laborers, and thus induce them to work by been born, and thenceforward continually, I their own consent, or buy them, and drive them cannot but think we are still his debtors. I sub- to it without their consent. Having proceeded mit, therefore, for your consideration, what fur- so far, it is naturally concluded that all ther mark of recognition is due to him anu to laborers are either hired laborers, or what we ourselves, as a grateful people.

call slaves. And further, it is assumed that With the retirement of General Scott came whoever is once a hired laborer is fixed in that the executive duty of appointing, in his stead, condition for life. a General-in-Chief of the Army. It is a fortu- Now, there is no such relation between nate circumstance that neither in council nor capital and labor as assumed; nor is there any country was there, so far as I know, any differ- such thing as a free man being fixed for life, ence of opinion as to the proper person to be in the condition of a hired laborer. Both selected. The retiring chief repeatedly ex- these assumptions are false, and all inferences pressed his judgment in favor of General Mc- from them are groundless. CLllan for the position; and in this the nation Labor is prior to, and independent of, capiseemed to give a unanimous concurrence. The tal. Capital is only the fruit of labor, and designation of General McClellan is, therefore, could never have existed if labor had not first in considerable degree, the selection of the existed. Labor is the superior of capital, and country as well as of the Executive ; and hence deserves much the higher consideration. Capthere is better reason to hope there will be given ital has its rights, which are as worthy of prohim the confidence and cordial support thus, by tection as any other rights. Nor is it denied fair implication, promised, and without which, that there is, and probably always will be, a he cannot, with so full efficiency, serve the relation between labor and capital, producing country.

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, them. A large majority belong to neither class and cross-purposes with each other.

-neither work for others, nor have others And the same is true, in all joint operations working for them. In most of the southern wherein those engaged, can have none but a States, a majority of the whole people of all common end in view, and can differ only as to the colors are neither slaves nor masters; while in eboice of means. In a storm at sea, no one on the northern, a large majority are neither birers board can wish the ship to sink; and yet, not nor hired. Men with their families-wives, unfrequently, all go down together, because too sons, and daughters-work for themselves, on many will direct, and no single mind can be al- their farms, in their houses, and in their shops, losed to control.

taking the whole product to themse ves, and It continues to develop that the insurrection asking no favors of capital on the one hand, nor is largely, if not exclusively, a war upon the of hired laborers or slaves on the other. It is fret principle of popular government - the not forgotten that a considerable number of nghts of the people. Conclusive evidence of persons mingle their own labor with capitalthis is found in the most grave and maturely that is they labor with their own hands, and considered public documents, as well as in the also buy or hire others to labor for them; but

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