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gable waters.

Without the advantage of public works, the resources of the nation have been developed, and its power displayed, in the construction of a navy of such magnitude, which has at the very period of its creation rendered signal service to the Union.

The increase of the number of seamen in the public service from 7,500 men in the Spring of 1861, to about 34,000 at the present time, has been accomplished without special legislation or extraordinary bounties to promote that increase. It has been found, however, that the operation of the draft, with the high bounties paid for army recruits, is beginning to affect injuriously the naval service, and will, if not corrected, be likely to impair its efficiency by detaching seamen from their proper vocation, and inducing them to enter the army. I therefore respectfully suggest that Congress might aid both the army and naval service by a definite provision on this subject, which would at the same time be equitable to the communities more especially interested.

I commend to your consideration the suggestions of the Secretary of the Navy, in regard to the policy of fostering and training seamen, and also the education of officers and engineers for the naval service. The Naval Academy is rendering signal service in preparing Midshipmen for the highly responsible duties which in after life they will be required to perform. In order that the country should not be deprived of the proper quota of educated officers, for which legal provision has been made at the naval school, the vcancies caused by the neglect or omission to make nominations from the States in insurrection, have been filled by the Secretary of the Navy. The school is now more full and complete than at any former period, and in every respect entitled to the favorable consideration of Congress.

During the last fiscal year the financial condition of the Post-office Department has been one of increasing prosperity, and I am gratified in being able to state that the actual postal revenue has nearly equalled the entire expenditures, the latter amounting to $11,314,206 84, and the former to $11,163,789 59, leaving a deficiency of but $150,417 25. In 1860, the year immediately preceding the rebellion, the deficiency amounted to $5,656,705 49, the postal receipts for that year being $2,647,225 19 less than those of 1863. The decrease since 1860 in the annual amount of transportation has been only about 25 per cent.; but the annual expenditure on account of the same has been reduced 35 per cent. It is manifest, therefore, that the Post-office Department may become self-sustaining in a few years, even with the restoration of the whole service.

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1 merged quite of some of our wisest statesmen cu te verge of me Trad swe had a higher and more enduring IVH I DA Hiny Berjement and substantial cultivation of the public ance de mount of trees revenue to be derived from the sale The pom has had a controling influence in shaping PRUGE TE de subess of our national domain. I may cite, as erience of tus te beni measures adopted in reference to actual en de maat to the States of the overdowed lands within their Iman war or their being reclaimed and rendered fit for cultivation, te gaax niway eompanies of alternate sections of land upon the conrenticed ines of their roads, which, when completed, will so irrely mampir the fadlines for reaching our distant possessions. This Poncy has received its most signal and beneficent illustration in the recent enactedet granting homesteads to actual settlers. Since the first day of Janary last the before mentioned quantity of one million four hundred and fifty-six thousand five hundred and fourteen acres of hand have been taken up under its provisions. This fact, and the amount of sales, furnish gratifying evidence of increasing settlement upon the public lands, notwithstanding the great struggle in which the

energies of the nation have been engaged, and which has required so large a withdrawal of our citizens from their accustomed pursuits. I cordially concur in the recommendation of the Secretary of the Interior, suggesting a modification of the act in favor of those engaged in the military and naval service of the United States.

I doubt not that Congress will cheerfully adopt such measures as will, without essentially changing the general features of the system, secure to the greatest practical extent its benefits to those who have left their homes in defence of the country in this arduous crisis.

I invite your attention to the views of the Secretary as to the propriety of raising, by appropriate legislation, a revenue from the mineral lands of the United States. The measures provided at your last session for the removal of certain Indian tribes have been carried into effect. Sundry treaties have been negotiated, which will, in due time, be submitted for the constitutional action of the Senate. They contain stipulations for extinguishing the possessory rights of the Indians to large and valuable tracts of lands. It is hoped that the effect of these treaties will result in the establishment of permanent friendly relations with such of these tribes as have been brought into frequent and bloody collision with our outlying settlements and emigrants. Sound policy, and our imperative duty to these wards of the Government, demand our anxious and constant attention to their material well-being, to their progress in the arts of civilization, and, above all, to that moral training which, under the blessing of Divine Providence, will confer upon them the elevated and sanctifying influences, the hopes and consolations of the Christian faith. I suggested in my last Annual Message the propriety of remodelling our Indian system. Subsequent events have satisfied me of its necessity. The details set forth in the report of the Secretary evince the urgent need for immediate legislative action. I commend the benevolent institutions, established or patronized by the government in this District, to your generous and fostering care.

The attention of Congress, during the last session, was engaged to some extent with a proposition for enlarging the water communication botween the Mississippi River and the northeastern seaboard, which proposition, however, failed for the time. Since then, upon a call of the greatest respectability, a Convention has been held at Chicago upon the same subject, a summary of whose views is contained in a Memorial Address to the President and Congress, and which I now have the honor to lay before you. That the interest is one which will ere long force its own way I do not entertain a doubt, while it is submitted

entirely to your wisdom as to what can be done now. Augmented interest is given to this subject by the actual commencement of work upon the Pacific railroad, under auspices so favorable to rapid progress and completion. The enlarged navigation becomes a palpable need to the great road.

I transmit the second annual report of the Commissioners of the Department of Agriculture, asking your attention to the developments in that vital interest of the nation.

When Congress assembled a year ago, the war had already lasted nearly twenty months, and there had been many conflicts on both land and sea, with varying results; the rebellion had been pressed back into reduced limits; yet the tone of public feeling and opinion, at home and abroad, was not satisfactory. With other signs, the popular elections then just past indicated uneasiness among ourselves, while, amid much that was cold and menacing, the kindest words coming from Europe were uttered in accents of pity that we were too blind to surrender a hopeless cause. Our commerce was suffering greatly by a few vessels built upon and furnished from foreign shores, and we were threatened with such additions from the same quarters as would sweep our trade from the seas and raise our blockade. We had failed to elicit from European governments any thing hopeful upon this subject. The preliminary Emancipation Proclamation issued in September, was running its assigned period to the beginning of the new year. A month later, the final proclamation came, including the announcement that colored men of suitable condition would be received in the war service. The policy of emancipation and of employing black soldiers gave to the future a new aspect, about which hope and fear and doubt contended in uncertain conflict. According to our political system, as a matter of civil administration the Government had no lawful power to effect emancipation in any State, and for a long time it had been hoped that the rebellion could be suppressed without resorting to it as a military measure. It was all the while deemed possible that the necessity for it might come, and that if it should, the crisis of the contest would then be presented. It came, and, as was anticipated, was followed by dark and doubtful days.

Eleven months having now passed, we are permitted to take another review. The rebel borders are pressed still further back, and by the complete opening of the Mississippi, the country dominated by the rebellion is divided into distinct parts with no practical communication between them. Tennessee and Arkansas have been substantially

cleared of insurgent control, and influential citizens in each-owners of slaves and advocates of slavery at the beginning of the rebellion-now declare openly for emancipation in their respective States. Of those States not included in the Emancipation Proclamation, Maryland and Missouri, neither of which three years ago would tolerate any restraint upon the extension of slavery into new Territories, only dispute now as to the best mode of removing it within their own limits.

Of those who were slaves at the beginning of the rebellion, full one hundred thousand are now in the United States military service, about one-half of which number actually bear arms in the ranks-thus giving the double advantage of taking so much labor from the insurgent cause and supplying the places which otherwise must be filled with so many white men. So far as tested, it is difficult to say they are not as good soldiers as any. No servile insurrection or tendency to violence or cruelty has marked the measures of emancipation and arming the blacks. These measures have been much discussed in foreign countries, and, cotemporary with such discussion, the tone of public sentiment there is much improved. At home the same measures have been fully discussed, supported, criticised and denounced, and the annual elections following are highly encouraging to those whose official duty it is to bear the country through this great trial. Thus we have the new reckoning. The crisis which threatened to divide the friends of the Union is past. Looking now to the present and future, and with a reference to a resumption of the National authority, in the States wherein that authority has been suspended, I have thought fit to issue a proclamation—a copy of which is herewith transmitted. On examination of this proclamation, it will appear, as is believed, that nothing is attempted beyond what is amply justified by the Constitution. True, the form of an oath is given, but no man is coerced to take it. The man is only promised a pardon in case he voluntarily takes the oath. The Constitution authorizes the Executive to grant or withdraw the pardon at his own absolute discretion, and this includes the power to grant on terms, as is fully established by judicial and other authorities. It is also proffered that if in any of the States named a State Government shall be in the mode prescribed set up, such government shall be recognized and guaranteed by the United States, and that under it the State shall, on the constitutional conditions, be protected against invasion and domestic violence. The constitutional obligation of the United States to guarantee to every State in the Union a Republican form of Government, and to protect the State in the cases stated, is explicit and full. But why ten

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