The Draft. Firmness of the President. The number of those who, never having invested any principle in the struggle, had become tired of the war, had largely increased. The expectation of a draft-or a "conscription," as it better suited the objects of the disaffected to term itwhich was passed at the next session of Congress, made the lukewarm love of many to wax cold. Newspapers and stump-speakers had the hardihood to demand peace upon any terms. It was even claimed that an opposition majority had been secured in the lower House of the next Congress. Their representatives in the Congress of 1862 began to re-assume those airs of insolence and defiance which they had previously found it convenient to lay aside for the time. Dark days, indeed, when the Thirty-seventh Congress assembled for its last session, on the 1st of December, 1862. Yet there was one who never faltered in purpose, however discouraging the prospect; one, who, assured that he was right, was determined to follow the right, wherever it might lead him. And, though his careworn expression and anxious look told plainly how the fearful responsibilities of his office. weighed upon him, he had ever a cheerful word, a happy illustration, a kindly smile, or a look of sympathy for those with whom he came in contact. The essential portions of his Annual Message on this occasion are given below: "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. "If the condition of our relations with other nations is less gratifying than it has usually been at former periods, it is cer Annual Message. tainly more satisfactory than a nation so unhappily distracted as we are, might reasonably have apprehended. In the month of June last there were some grounds to expect that the maritime powers which, at the beginning of our domestic difficulties, 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 themselves than to our own country. But the temporary reverses which afterward befell the National arms, and which were exaggerated by our own disloyal citizens abroad, have hitherto delayed that act of simple justice. "The civil war, which has so radically changed, for the moment, the occupations and habits of the American people, has necessarily disturbed the social condition, and affected very deeply the prosperity of the nations with which we have carried on a commerce that has been steadily increasing throughout a period of half a century. It has, at the same time, excited political ambitions and apprehensions which have produced a profound agitation throughout the civilized world. In this unusual agitation we have forborne from taking part in any controversy between foreign States, and between parties or factions in such States. We have attempted no propagandism, and acknowledged no revolution. But we have left to every nation the exclusive conduct and management of its own affairs. Our struggle has been, of course, contemplated by foreign nations with reference lese to its own merits, than to its supposed, and often exaggerated, effects and consequences resulting to those nations themselves. Nevertheless, complaint on the part of this Government, even if it were just, would certainly be unwise. "The treaty with Great Britain for the suppression of the slave-trade, has been put into operation, with a good prospect of complete success. It is an occasion of special pleasure to acknowledge that the execution of it, on the part of Her Majesty's Government, has been marked with a jealous respect Message. Colonization Movements. for the authority of the United States, and the rights of their moral and loyal citizens. "Applications have been made to me by many free Americans of African descent to favor their emigration, with a view to such colonization, as was contemplated in recent acts of Congress. Other parties, at home and abroad-some from interested motives, others upon patriotic considerations, and still others influenced by philanthropic sentiments-have suggested similar measures; while, on the other hand, several of the Spanish-American republics have protested against the sending of such colonies to their respective territories. Under these circumstances I have declined to move any such colony to any State, without first obtaining the consent of its Government, with an agreement on its part to receive and protect such emigrants in all the rights of freemen; and I have, at the same time, offered to the several States situated within the tropics, or having colonies there, to negotiate with them, subject to the advice and consent of the Senate, to favor the voluntary emigration of persons of that class to their respective territories, upon conditions which shall be equal, just, and humane. Liberia and Hayti are, as yet, the only countries to which colonists of African descent from here, could go with certainty of being received and adopted as citizens; and I regret to say such persons, contemplating colonization, do not seem so willing to migrate to those countries, as to some others, nor so willing as I think their interest demands. I believe, however, opinion among them. in this respect is improving; and that, ere long, there will be an augmented and considerable migration to both these countries, from the United States. "I have favored the project for connecting the United States with Europe by an Atlantic telegraph, and a similar project to extend the telegraph from San Francisco, to connect by a Pacific telegraph with the line which is being extended across the Russian Empire. Message. Territories. Finances. "The Territories of the United States, with unimportant exceptions, have remained undisturbed by the civil war; and they are exhibiting such evidence of prosperity as justifies an expectation that some of them will soon be in a condition to be organized as States, and be constitutionally admitted into the Federal Union. "The immense mineral resources of some of those territories ought to be developed as rapidly as possible. Every step in that direction would have a tendency to improve the revenues of the Government, and diminish the burdens of the people. It is worthy of your serious consideration whether some extraordinary measures to promote that end can not be adopted. The means which suggests itself as most likely to be effective, is a scientific exploration of the mineral regions in those Territories, with a view to the publication of its results at home and in foreign countries-results which can not fail to be auspicious. "The condition of the finances will claim your most diligent consideration. The vast expenditures incident to the military and naval operations required for the suppression of the rebellion, have hitherto been met with a promptitude and certainty unusual in similar circumstances; and the public credit has been fully maintained. The continuance of the war, however, and the increased disbursements made necessary by the augmented forces now in the field, demand your best reflections as to the best modes of providing the necessary revenue, without injury to business, and with the least possible burdens upon labor. "The suspension of specie payments by the banks, soon after the commencement of your last session, made large issues of United States notes unavoidable. In no other way could the payment of the troops, and the satisfaction of other just demands, be so economically or so well provided for. The judicious legislation of Congress, securing the receivability of these notes for loans and internal duties, and Message. Specie Payments. National Banks. making them a legal tender for other debts, has made them a universal currency; and has satisfied, partially at least, and for the time, the long felt want of an uniform circulating medium, saving thereby to the people immense sums in discounts and exchanges. "A return to specie payments, however, at the earliest period compatible with due regard to all interests concerned, should ever be kept in view. Fluctuations in the value of currency are always injurious, and to reduce these fluctuations to the lowest possible point, will always be a leading purpose in wise legislation. Convertibility, prompt and certain convertibility into coin, is generally acknowledged to be the best and the surest safeguard against them; and it is extremely doubtful whether a circulation of United States notes, payable in coin, and sufficiently large for the wants of the people, can be permanently, usefully and safely maintained. "Is there, then, any other mode in which the necessary provision for the public wants can be made, and the great advantages of a safe and uniform currency secured? "I know of none which promises so certain results, and is, at the same time, so unobjectionable, as the organization of banking associations, under a general Act of Congress, well guarded in its provisions. To such associations the Government might furnish circulating notes, on the security of the United States bonds deposited in the treasury. These notes, prepared under the supervision of proper officers, being uniform in appearance and security, and convertible always into coin, would at once protect labor against the evils of a vicious currency, and facilitate commerce by cheap and safe exchanges. "A moderate reservation from the interest on the bonds would compensate the United States for the preparation and distribution of the notes, and a general supervision of the system, and would lighten the burden of that part of the public debt employed as securities. The public credit, more |