than one year ago the most sanguine could have anticipated. During the
fiscal year ending the 30th June, 1865 (the last year of the war), the
public debt was increased $941,902,537, and on the 31st of October,
1865, it amounted to $2,740,854,750. On the 31st day of October, 1866,
it had been reduced to $2,552,310,006, the diminution during a period
of fourteen months, commencing September 1, 1865, and ending October
31, 1866, having been $206,379,565. In the last annual report on the
state of the finances it was estimated that during the three quarters
of the fiscal year ending the 30th of June last the debt would be
increased $112,194,947. During that period, however, it was reduced
$31,196,387, the receipts of the year having been $89,905,905 more and
the expenditures $200,529,235 less than the estimates. Nothing could
more clearly indicate than these statements the extent and availability
of the national resources and the rapidity and safety with which under
our form of government, great military and naval establishments can be
disbanded and expenses reduced from a war to a peace footing.
During the fiscal year ending June 30, 1866, the receipts were
$558,032,620 and the expenditures $520,750,940, leaving an available
surplus of $37,281,680. It is estimated that the receipts for the
fiscal year ending the 30th June, 1867, will be $475,061.386, and that
the expenditures will reach the sum of $316,428,078, leaving in the
Treasury a surplus of $158,633,308. For the fiscal year ending June 30,
1886, it is estimated that the receipts will amount to $436,000,000 and
that the expenditures will be $350,247,641, showing an excess of
$85,752,359 in favor of the Government. These estimated receipts may be
diminished by a reduction of excise and import duties, but after all
necessary reductions shall have been made the revenue of the present
and of following years will doubtless be sufficient to cover all
legitimate charges upon the Treasury and leave a large annual surplus
to be applied to the payment of the principal of the debt. There seems
now to be no good reason why taxes may not be reduced as the country
advances in population and wealth, and yet the debt be extinguished
within the next quarter of a century.
The report of the Secretary of War furnishes valuable and important
information in reference to the operations of his Department during the
past year. Few volunteers now remain in the service, and they are being
discharged as rapidly as they can be replaced by regular troops. The
Army has been promptly paid, carefully provided with medical treatment,
well sheltered and subsisted, and is to be furnished with
breech-loading small arms. The military strength of the nation has been
unimpaired by the discharge of volunteers, the disposition of
unserviceable or perishable stores, and the retrenchment of
expenditure. Sufficient war material to meet any emergency has been
retained, and from the disbanded volunteers standing ready to respond
to the national call large armies can be rapidly organized, equipped,
and concentrated. Fortifications on the coast and frontier have
received or are being prepared for more powerful armaments; lake
surveys and harbor and river improvements are in course of energetic
prosecution. Preparations have been made for the payment of the
additional bounties authorized during the recent session of Congress,
under such regulations as will protect the Government from fraud and
secure to the honorably discharged soldier the well-earned reward of
his faithfulness and gallantry. More than 6,000 maimed soldiers have
received artificial limbs or other surgical apparatus, and 41 national
cemeteries, containing the remains of 104,526 Union soldiers, have
already been established. The total estimate of military appropriations
is $25,205,669.
It is stated in the report of the Secretary of the Navy that the naval
force at this time consists of 278 vessels, armed with 2,351 guns. Of
these, 115 vessels, carrying 1,029 guns, are in commission, distributed
chiefly among seven squadrons. The number of men in the service is
13,600. Great activity and vigilance have been displayed by all the
squadrons, and their movements have been judiciously and efficiently
arranged in such manner as would best promote American commerce and
protect the rights and interests of our countrymen abroad. The vessels
unemployed are undergoing repairs or are laid up until their services
may be required. Most of the ironclad fleet is at League Island, in the
vicinity of Philadelphia, a place which, until decisive action should
be taken by Congress, was selected by the Secretary of the Navy as the
most eligible location for that class of vessels. It is important that
a suitable public station should be provided for the ironclad fleet. It
is intended that these vessels shall be in proper condition for any
emergency, and it is desirable that the bill accepting League Island
for naval purposes, which passed the House of Representatives at its
last session, should receive final action at an early period, in order
that there may be a suitable public station for this class of vessels,
as well as a navy-yard of area sufficient for the wants of the service
on the Delaware River. The naval pension fund amounts to $11,750,000,
having been increased $2,750,000 during the year. The expenditures of
the Department for the fiscal year ending 30th June last were
$43,324,526, and the estimates for the coming year amount to
$23,568,436. Attention is invited to the condition of our seamen and
the importance of legislative measures for their relief and
improvement. The suggestions in behalf of this deserving class of our
fellow-citizens are earnestly recommended to the favorable attention of
Congress.
The report of the Postmaster-General presents a most satisfactory
condition of the postal service and submits recommendations which
deserve the consideration of Congress. The revenues of the Department
for the year ending June 30, 1866, were $14,386,986 and the
expenditures $15,352,079, showing an excess of the latter of $965,093.
In anticipation of this deficiency, however, a special appropriation
was made by Congress in the act approved July 28, 1866. Including the
standing appropriation of $700,000 for free mail matter as a legitimate
portion of the revenues, yet remaining unexpended, the actual
deficiency for the past year is only $265,093--a sum within $51,141 of
the amount estimated in the annual report of 1864. The decrease of
revenue compared with the previous year was 1 1/5 per cent, and the
increase of expenditures, owing principally to the enlargement of the
mail service in the South, was 12 per cent. On the 30th of June last
there were in operation 6,930 mail routes, with an aggregate length of
180,921 miles, an aggregate annual transportation of 71,837,914 miles,
and an aggregate annual cost, including all expenditures, of
$8,410,184. The length of railroad routes is 32,092 miles and the
annual transportation 30,609,467 miles. The length of steamboat routes
is 14,346 miles and the annual transportation 3,411,962 miles. The mail
service is rapidly increasing throughout the whole country, and its
steady extension in the Southern States indicates their constantly
improving condition. The growing importance of the foreign service also
merits attention. The post-office department of Great Britain and our
own have agreed upon a preliminary basis for a new postal convention,
which it is believed will prove eminently beneficial to the commercial
interests of the United States, inasmuch as it contemplates a reduction
of the international letter postage to one-half the existing rates: a
reduction of postage with all other countries to and from which
correspondence is transmitted in the British mail, or in closed mails
through the United Kingdom; the establishment of uniform and reasonable
charges for the sea and territorial transit of correspondence in closed
mails; and an allowance to each post-office department of the right to
use all mail communications established under the authority of the
other for the dispatch of correspondence, either in open or closed
mails, on the same terms as those applicable to the inhabitants of the
country providing the means of transmission.
The report of the Secretary of the Interior exhibits the condition of
those branches of the public service which are committed to his
supervision. During the last fiscal year 4,629,312 acres of public land
were disposed of, 1,892,516 acres of which were entered under the
homestead act. The policy originally adopted relative to the public
lands has undergone essential modifications. Immediate revenue, and not
their rapid settlement, was the cardinal feature of our land system.
Long experience and earnest discussion have resulted in the conviction
that the early development of our agricultural resources and the
diffusion of an energetic population over our vast territory are
objects of far greater importance to the national growth and prosperity
than the proceeds of the sale of the land to the highest bidder in open
market. The preemption laws confer upon the pioneer who complies with
the terms they impose the privilege of purchasing a limited portion of
"unoffered lands" at the minimum price. The homestead enactments
relieve the settler from the payment of purchase money, and secure him
a permanent home upon the condition of residence for a term of years.
This liberal policy invites emigration from the Old and from the more
crowded portions of the New World. Its propitious results are
undoubted, and will be more signally manifested when time shall have
given to it a wider development.
Congress has made liberal grants of public land to corporations in aid
of the construction of railroads and other internal improvements.
Should this policy hereafter prevail, more stringent provisions will be
required to secure a faithful application of the fund. The title to the
lands should not pass, by patent or otherwise, but remain in the
Government and subject to its control until some portion of the road
has been actually built. Portions of them might then from time to time
be conveyed to the corporation, but never in a greater ratio to the
whole quantity embraced by the grant than the completed parts bear to
the entire length of the projected improvement. This restriction would
not operate to the prejudice of any undertaking conceived in good faith
and executed with reasonable energy, as it is the settled practice to
withdraw from market the lands falling within the operation of such
grants, and thus to exclude the inception of a subsequent adverse
right. A breach of the conditions which Congress may deem proper to
impose should work a forfeiture of claim to the lands so withdrawn but
unconveyed, and of title to the lands conveyed which remain unsold.
Operations on the several lines of the Pacific Railroad have been
prosecuted with unexampled vigor and success. Should no unforeseen
causes of delay occur, it is confidently anticipated that this great
thoroughfare will be completed before the expiration of the period
designated by Congress.
During the last fiscal year the amount paid to pensioners, including
the expenses of disbursement, was $13,459,996, and 50,177 names were
added to the pension rolls. The entire number of pensioners June 30,
1866, was 126,722. This fact furnishes melancholy and striking proof of
the sacrifices made to vindicate the constitutional authority of the
Federal Government and to maintain inviolate the integrity of the Union
They impose upon us corresponding obligations. It is estimated that
$33,000,000 will be required to meet the exigencies of this branch of
the service during the next fiscal year.
Treaties have been concluded with the Indians, who, enticed into armed
opposition to our Government at the outbreak of the rebellion, have
unconditionally submitted to our authority and manifested an earnest
desire for a renewal of friendly relations.
During the year ending September 30, 1866, 8,716 patents for useful
inventions and designs were issued, and at that date the balance in the
Treasury to the credit of the patent fund was $228,297.
As a subject upon which depends an immense amount of the production and
commerce of the country, I recommend to Congress such legislation as
may be necessary for the preservation of the levees of the Mississippi
River. It is a matter of national importance that early steps should be
taken, not only to add to the efficiency of these barriers against
destructive inundations, but for the removal of all obstructions to the
free and safe navigation of that great channel of trade and commerce.
The District of Columbia under existing laws is not entitled to that
representation in the national councils which from our earliest history
has been uniformly accorded to each Territory established from time to
time within our limits. It maintains peculiar relations to Congress, to
whom the Constitution has granted the power of exercising exclusive
legislation over the seat of Government. Our fellow-citizens residing
in the District, whose interests are thus confided to the special
guardianship of Congress, exceed in number the population of several of
our Territories, and no just reason is perceived why a Delegate of
their choice should not be admitted to a seat in the House of
Representatives. No mode seems so appropriate and effectual of enabling
them to make known their peculiar condition and wants and of securing
the local legislation adapted to them. I therefore recommend the
passage of a law authorizing the electors of the District of Columbia
to choose a Delegate, to be allowed the same rights and privileges as a
Delegate representing a Territory. The increasing enterprise and rapid
progress of improvement in the District are highly gratifying, and I
trust that the efforts of the municipal authorities to promote the
prosperity of the national metropolis will receive the efficient and
generous cooperation of Congress.
The report of the Commissioner of Agriculture reviews the operations of
his Department during the past year, and asks the aid of Congress in
its efforts to encourage those States which, scourged by war, are now
earnestly engaged in the reorganization of domestic industry.
It is a subject of congratulation that no foreign combinations against
our domestic peace and safety or our legitimate influence among the
nations have been formed or attempted. While sentiments of
reconciliation, loyalty, and patriotism have increased at home, a more
just consideration of our national character and rights has been
manifested by foreign nations.
The entire success of the Atlantic telegraph between the coast of
Ireland and the Province of Newfoundland is an achievement which has
been justly celebrated in both hemispheres as the opening of an era in
the progress of civilization. There is reason to expect that equal
success will attend and even greater results follow the enterprise for
connecting the two continents through the Pacific Ocean by the
projected line of telegraph between Kamchatka and the Russian
possessions in America.
The resolution of Congress protesting against pardons by foreign
governments of persons convicted of infamous offenses on condition of
emigration to our country has been communicated to the states with
which we maintain intercourse, and the practice, so justly the subject
of complaint on our part, has not been renewed.
The congratulations of Congress to the Emperor of Russia upon his
escape from attempted assassination have been presented to that humane
and enlightened ruler and received by him with expressions of grateful
appreciation.
The Executive, warned of an attempt by Spanish American adventurers to
induce the emigration of freedmen of the United States to a foreign
country, protested against the project as one which, if consummated,
would reduce them to a bondage even more oppressive than that from
which they have just been relieved. Assurance has been received from
the Government of the State in which the plan was matured that the
proceeding will meet neither its encouragement nor approval. It is a
question worthy of your consideration whether our laws upon this
subject are adequate to the prevention or punishment of the crime thus
meditated.
In the month of April last, as Congress is aware, a friendly
arrangement was made between the Emperor of France and the President of
the United States for the withdrawal from Mexico of the French
expeditionary military forces. This withdrawal was to be effected in
three detachments, the first of which, it was understood, would leave
Mexico in November, now past, the second in March next, and the third
and last in November, 1867. Immediately upon the completion of the
evacuation the French Government was to assume the same attitude of
nonintervention in regard to Mexico as is held by the Government of the
United States. Repeated assurances have been given by the Emperor since
that agreement that he would complete the promised evacuation within
the period mentioned, or sooner.
It was reasonably expected that the proceedings thus contemplated would
produce a crisis of great political interest in the Republic of Mexico.
The newly appointed minister of the United States, Mr. Campbell, was
therefore sent forward on the 9th day of November last to assume his
proper functions as minister plenipotentiary of the United States to
that Republic. It was also thought expedient that he should be attended
in the vicinity of Mexico by the Lieutenant-General of the Army of the
United States, with the view of obtaining such information as might be
important to determine the course to be pursued by the United States in
reestablishing and maintaining necessary and proper intercourse with
the Republic of Mexico. Deeply interested in the cause of liberty and
humanity, it seemed an obvious duty on our part to exercise whatever
influence we possessed for the restoration and permanent establishment
in that country of a domestic and republican form of government.
Such was the condition of our affairs in regard to Mexico when, on the
22d of November last, official information was received from Paris that
the Emperor of France had some time before decided not to withdraw a
detachment of his forces in the month of November past, according to
engagement, but that this decision was made with the purpose of
withdrawing the whole of those forces in the ensuing spring. Of this
determination, however, the United States had not received any notice
or intimation, and so soon as the information was received by the
Government care was taken to make known its dissent to the Emperor of
France.
I can not forego the hope that France will reconsider the subject and
adopt some resolution in regard to the evacuation of Mexico which will
conform as nearly as practicable with the existing engagement, and thus
meet the just expectations of the United States. The papers relating to
the subject will be laid before you. It is believed that with the
evacuation of Mexico by the expeditionary forces no subject for serious
differences between France and the United States would remain. The
expressions of the Emperor and people of France warrant a hope that the
traditionary friendship between the two countries might in that case be
renewed and permanently restored.
A claim of a citizen of the United States for indemnity for spoliations
committed on the high seas by the French authorities in the exercise of
a belligerent power against Mexico has been met by the Government of
France with a proposition to defer settlement until a mutual convention
for the adjustment of all claims of citizens and subjects of both
countries arising out of the recent wars on this continent shall be
agreed upon by the two countries. The suggestion is not deemed
unreasonable, but it belongs to Congress to direct the manner in which
claims for indemnity by foreigners as well as by citizens of the United
States arising out of the late civil war shall be adjudicated and
determined. I have no doubt that the subject of all such claims will
engage your attention at a convenient and proper time.
It is a matter of regret that no considerable advance has been made
toward an adjustment of the differences between the United States and
Great Britain arising out of the depredations upon our national
commerce and other trespasses committed during our civil war by British
subjects, in violation of international law and treaty obligations. The
delay, however, may be believed to have resulted in no small degree
from the domestic situation of Great Britain. An entire change of
ministry occurred in that country during the last session of
Parliament. The attention of the new ministry was called to the subject
at an early day, and there is some reason to expect that it will now be
considered in a becoming and friendly spirit. The importance of an
early disposition of the question can not be exaggerated. Whatever
might be the wishes of the two Governments, it is manifest that good
will and friendship between the two countries can not be established
until a reciprocity in the practice of good faith and neutrality shall
be restored between the respective nations.
On the 6th of June last, in violation of our neutrality laws, a
military expedition and enterprise against the British North American
colonies was projected and attempted to be carried on within the
territory and jurisdiction of the United States. In obedience to the
obligation imposed upon the Executive by the Constitution to see that
the laws are faithfully executed, all citizens were warned by
proclamation against taking part in or aiding such unlawful
proceedings, and the proper civil, military, and naval officers were
directed to take all necessary measures for the enforcement of the
laws. The expedition failed, but it has not been without its painful
consequences. Some of our citizens who, it was alleged, were engaged in
the expedition were captured, and have been brought to trial as for a
capital offense in the Province of Canada. Judgment and sentence of
death have been pronounced against some, while others have been
acquitted. Fully believing in the maxim of government that severity of
civil punishment for misguided persons who have engaged in
revolutionary attempts which have disastrously failed is unsound and
unwise, such representations have been made to the British Government
in behalf of the convicted persons as, being sustained by an
enlightened and humane judgment, will, it is hoped, induce in their
cases an exercise of clemency and a judicious amnesty to all who were
engaged in the movement. Counsel has been employed by the Government to
defend citizens of the United States on trial for capital offenses in
Canada, and a discontinuance of the prosecutions which were instituted
in the courts of the United States against those who took part in the
expedition has been directed.