REPORT OF THE SECRETARY OF WAR. 445 Report of the Secre tary of War. Report of the Secretary of War. This constituted the "Ar- | from our grasp. This reverse, my of the Union"-a force however, gave no discourageone-half greater than Napo- ment to our gallant people; leon called into the field in 1815 to resist the they have crowded into our ranks, and although combined armies of Great Britain, Russia, Aus- large numbers have been necessarily rejected, a tria, Prussia, the German States, &c. In regard cipitate itself upon the foe. The check that we have to enlistments the report said: At the commencement of this rebellion, inaugurated by the attack upon Fort Sumter, the entire military force at the disposal of the Government was 16,006 regulars, principally employed in the West to hold in check marauding Indians. In April, 75,000 volunteers were called upon to enlist for three months service, and responded with such alacrity mighty army in invincible array stands eager to pre received upon the Potomac has, therefore, but postponed the campaign for a few months. The other successes of the rebels, though dearly won, were mere affairs, with no important or permanent advantages. The possession of Western Virginia and the occupation of Hatteras and Beaufort have nobly redeemed our transient reverses." This embodied a true statement of those that 77,875 were immediately obtained. Under the "glorious victories vouchsafed to the South authority of the act of Congress of July 22, 1861, the States were asked to furnish 500,000 volunteers to serve for three years, or during the war; and by the act approved the 29th of the same month, the addition of 25,000 men to the Regular Army of the United States was authorized. The result is, that we have now an army of upwards of 600,000 men. If we add to this the number of the discharged three months volunteers, the aggregate force furnished to the Government since April last exceeds 700,000 men." ern arms," so piously referred to by Mr. Davis. In regard to the progress of affairs in the Border Slave States the Secretary said : "At the date of my last report, the States of Delaware, Maryland, Kentucky and Missouri were threatened with rebellion. In Delaware, the good sense and patriotism of the people have triumphed over the unholy schemes of traitors. The people of Kentucky early pronounced themselves, by an unequivocal declaration at the ballot-box, in favor of Mr. Cameron then referred, with a sense of the Union; and Maryland, notwithstanding the ef pride, to the fact that in the war of the Re- forts of bad men in power in the city of Baltimore, when the opportunity of a general election was afvolution Massachusetts supplied troops to the forded, under the lead of her brave and patriotic extent of 56,000—or more than one in six of Governor, rebuked by an overwhelming majority her entire population. Should the loyal the traitors who would have led her to destruction. States now furnish forces in that proportion | In Missouri, a loyal State Government has been esthe Federal army would embrace over three tablished by the people, thousands of whom have millions of men. He added: rallied to the support of the Federal authority, and, in conjunction with troops from other portions of the country, have forced the rebels to retire into the adjoining State. The Government established in Virginia by the loyal portion of her population is in successful operation, and I have no doubt will be sustained by the people of the entire State whenever the thraldom of the rebel forces shall have been removed." "The conspiracy against the Government extended over an area of 733,144 square miles, possessing a coast line of 3,523 miles, and a shore line of 25,414 miles, with an interior boundary line of 7,031 miles in length. This conspiracy stripped us of arms and munitions, and scattered our Navy to the most distant quarters of the globe. The effort to restore the Union, which the Government entered on in April last, was the most gigantic endeavor in the history of civil war. The interval of seven months has been spent in preparation. "The history of this rebellion, in common with all others, for obvious causes, records the first successes in favor of the insurgents. The disaster of Bull Run was but the natural consequence of the premature advance of our brave but undisciplined troops, which the impatience of the country demanded. The betrayal also of our movements by traitors in our midst enabled the rebels to choose and intrench their position, and by a reenforcement in great strength, at the moment of victory, to snatch it | The Secretary, recommending a reconstruction of the boundaries of the States surrounding the National capitals, said: "The geographical position of the metropolis of the nation, menaced by the rebels, and required to be defended by thousands of our troops, induces me to suggest for consideration the propriety and expe. diency of a reconstruction of the boundaries of the States of Delaware, Maryland and Virginia. Wisdom and true statesmanship would dictate that the seat of the National Government for all time to come should be placed beyond reasonable danger of seiz ure by enemies within, as well as from capture by Report of the Secretary of War. foes from without. By agree ment between the States named, such as was effected for similar purposes by Michigan and Ohio, and by Missouri and Iowa, their boundaries could be so changed as to render the capital more remote than at present from the influence of State Governments which have arrayed themselves in rebellion against the Federal authority. To this end, the limits of Virginia must be so altered as to make her boundaries consist of the Blue Ridge on the east and Pennsylvania on the north, leaving those on the south and west as at present. By this arrangement two counties of Maryland (Alleghany and Washington) would be transferred to the jurisdiction of Virginia. All that portion of Virginia which lies between the Blue Ridge and Chesapeake Bay could then be added to Maryland, while that portion of the peninsula between the waters of the Chesapeake and the At lantic, now jointly held by Maryland and Virginia, could be incorporated into the State of Delaware. A reference to the map will show that these are great natural boundaries, which for all time to come would serve to mark the limits of these States. “To make the protection of the capital complete, in consideration of the large accession of territory which Maryland would receive under the arrangement proposed, it would be necessary that that State should consent so to modify her constitution as to limit the basis of her representation to her white population. they should not be turned over to the enemy is too plain to discuss. Why deprive him of supplies by a blockade, and voluntarily give him men to produce supplies? The disposition to be made of the slaves of rebels after the close of the war, can be safely left to the wisdom and patrotism of Congress. The representatives of the people will, unquestionably, secure to the loyal slaveholders every right to which they are entitled under the Constitution of the country." Report of the Navy Department. The Report of the Navy Department possessed an interest scarcely second to that claimed for the War Department's exposition. It stated, at considerable length, the extraordinary obstacles encountered in reorganizing that arm of the service after its almost utter paralyzation by secession defection; it reviewed the labor performed during the summer and fall of 1861 in blockading the coast from Virginia to the Rio Grandein co-operating in the several expeditions which had resulted so gloriously to the cause of our arms-in chasing privateers, whose flag, though unrecognized by the nations of earth, still found admission and all necessary assistance in English ports to render them exceedingly dangerous and troublesome. To the capture of the rebel emissaries, Mason and Slidell, the Secretary referred approvingly Executive repudiated. “In this connection, it would be the part of wis-in that respect sanctioning an act which the The report gave a dom to reannex to the District of Columbia that portion of its original limits which by act of Congress summary statement of the vessels employed was retroceded to the State of Virginia.” up to December 1st. We quote its tables: The conclusion of the Report, as amended by the President,* read: · "It is already a grave question what shall be done by the slaves who are abandoned by their owners on the advance of our troops into Southern territory, as at Beaufort District, in South Carolina. The number left within our control at that point is very considerable, and similar cases will probably occur. What shall be done with them? Can we afford to send them forward to their masters, to be by them armed against us, or used in introducing supplies to maintain the rebellion? Their labor may be useful to us; withheld from the enemy, it lessens his military resources, and withholding them has no tendency to induce the horrors of insurrection even in the rebel communities. They constitute a rebel resource, and, being such, that "When the vessels now ballding and purchased, of every class, are armed, equipped and ready for service, the condi tion of the Navy will be as follows: Number of Vessels. 36 Side-wheel steamers. 43 Screw-steamers 79 9,998 | the Mississippi river, was a 78 8,432 4 136 518 The Iron Clads' Birth. The Iron Clads' Birth. was yet in embryo; and the celebrated Mer- These figures included those ordered to be built by the special session of Congress. Only three "iron clads" were specified. It scarcely seems credible that, with but three of these experimental batteries in course of construction, in December, 1861, the month of December, 1862 should behold, in that species of craft, the nation's hope against both domestic and foreign foes. The three iron clads, or, as the Secretary called them-" armor steamers," were the embodiments of ideas which soon changed the entire aspect of the navies of the world. As in most instances, where a great change was to be introduced to the moral and physical forces of civilization, American skill and sagacity were the pioneers. Yet, it is to be written that, to the navy proper does The amount appropriated at the last regular not belong the idea of iron clad vessels. Na-session of Congress for the naval service for the cur To the credit and honor of Secretary Welles be it said, the ideas of Erricson received full endorsement; and, to his hearty co-operation did the country owe the rapid completion of the little craft which was destined to revolutionize the navies of the seas. With her triumph it may be said with truth that the Iron Age had come again. The Secretary's estimates for his wants we may append: The Navy Estimates. rent year was $13,168,675.86. To this was added at val officers and naval boards reported against The estimates submitted by this Department for the fiscal year ending June 30th, 1863, amount to $41,096,530 25 For the marine corps... For navy yards, hospitals, magazines and miscellaneous objects... The Treasury Department Report. 1,105,656 77 | And there must be added also the For the first quarter the actual ex penditures were.... 2,423,478 00 The Treasury Department report did not make Making the total receipts. On the other hand: its appearance until Dec. 10th, owing to the labor required in its preparation. It was a lengthy document setting forth without reserve the condition of the nation's finances. The Secretary acknowledged his great obligations to the bankers of the country and to the people investing in the National Loan (7.30 per cents). His summary of expenses and estimates were thus tabularized: To obtain a clear understanding of the amount for which it will become necessary to resort to further loans, it is requisite to review the financial movement of the Treasury during the whole of the last and the first quarter of the current fiscal year, and compare, somewhat more closely than has already been done, the probable wants and probable resources of the Government for the remaining three quarters of the current and the whole of the following year. In the July report the Secretary submitted a detailed statement, in part estimated, showing the receipts for the last fiscal year, ending on the 30th June, 1861, including the balance in the Treasury at its commencement, to have been $86,972,893.81, and the expenditures to have been $84,577,258.60, and the balance to have been $2,355,635.21. Actual returns show that the receipt, including balance, were $86,835,900.27, the expenditures $84,578,834.47, and the balance $2,257,065.80. "For the first quarter of the current fiscal year, commencing 1st July, 1861, the receipts and expenditures are ascertained, and for the remaining three quarters, ending 30th June, 1862, are estimated as follows: For the first quarter the actual receipts from customs, lands and miscellaneous sources, including the balance of $2,257,065.80, For the second, third and fourth And the estimated expenditures un- • increased interest. $5,166,438 99 Navy Departm'ts. 137,964,488 77 Making a total of actual and esti- From which deduct actual and es- 20,000,000 00 $329,501,994 38 $98,239,733 09 302,035,761 21 143,130,927 76 $543,406,422 07 329,501,994 38 $213,904,427 68 "For the fiscal year 1863, commencing on the 1st of July, 1862, and ending on the 30th of June, 1863, no reliable estimates can be made. It is earnestly to be hoped, and, in the judgment of the Secretary, not without sufficient grounds, that the present war may be brought to an auspicious termination before midsummer. In that event the provision of revenue by taxation, which he has recommended, will amply suffice for all financial exigencies, without resort to additional loans; and not only so, but will enable the Government to begin at once the reduction of the existing debt. "It is the part of wisdom, however, to be prepared for all eventualities, and the Secretary, therefore, submits the estimates of the several depart27,000,000 00ments for the fiscal year 1863, based on the supposed continuance of the war, as follows: "The estimated expenditures are: 197,242,588 14 75,439,975 00 For the civil list, including foreign intercourse and miscellaneous expenses other than on account of the public debt. For the Interior Department, (In dians and pensions).. $23,086,971 23 4,102,962 96 THE POSTMASTER GENERAL'S DEFENSE. For the War Department. For the Navy Department.. For the public debt Redemption.... $2,883,364 11 Interest on debt contracted before 1st July, 1862... 29,932,696 42 Interest on debt to be contracted af ter 1st July, 1862 10,000,000 00 360,159,986 61 149 517,372,802 93 897,372,802 93 On the 1st day of July, 1862, the public debt will be..... On the 1st day of July, 1863, the public debt will be.. Here was a debt whose magnitude placed us beside the Old World nationalties in the scale of "promises to pay;" but it was regarded by our people with a feeling of confidence. If the sums demanded were well 43,816,330 53 spent, the North would pour out its resources and its blood freely. Only restore the Union and the old-time prosperity, and a debt twice greater than that hinted at by the Secretary would be readily mastered in thirty or forty years. The inexhaustable resources of the soil, the matchless energy of the people, the new avenues to wealth constantly being discovered, rendered a public debt of magnitude a national impetus instead of a national incubus. In that respect how republican America differed from monarchial Europe ! Making an aggregate of estimated Making an aggregate of estimated receipts of. 95,800,000 00 And leaving a balance to be pro The Postmaster-General's Defense. The report of the Postmaster - General possessed several points of permanent interest. Making loyalty or disloyalty “The whole amount required from loans may the test, he had deprived disloyal men of vided for of....... therefore be thus stated: For the fiscal year 1862, under ex Making an aggregate of........ $379,531,245 51 their contracts for mail transportation, and $75,449,675 00 | had denied disloyal journals the right to circulate through the mails. In his action 200,000,000 00 upon these cases the Postmaster-General had been charged with an exercise of arbitrary 379,531,245 51 and unconstitutional power; and a large class of persons took umbrage at what they deemed to be an infringement of the sacredness of contracts and the freedom of the press. $654,980,920 61 | "The total may be stated in round numbers at six hundred and fifty-five millions of dollars. "A tabular statement will accompany this report, showing somewhat more in detail the actual and estimated receipts and expenditures of the financial years 1861, 1862 and 1863. THE REBEL DEBT IN 1860, 1861, 1862 AND 1863. "It only remains, in order to complete the view of the financial situation, to submit a statement of the public debt as it was on the 1st day of July, 1860 and 1861, and will be; according to the esti In his own defense Mr. Blair assumed that "it was positively unsafe to intrust the transportation of the mails to a person who refused or failed to recognize the sanctity of an oath, but to continue payment of public money to the enemies of the Government and their allies, was to give direct aid and comfort to treason in arms. We could not thus permit this branch of Government to contribute to its own overthrow." He also gave his reasons for "excluding disloyal publications from the mails. To await the results of slow judicial prosecution was to allow crime to be consummated, with the expecta90,867,828 68 |tion of subsequent punishment, instead of |