_Fellow-Citizens of the Senate and House of Representatives_:
Another year of health and of sufficiently abundant harvests has passed.
For these, and especially for the improved condition of our national
affairs, our renewed and profoundest gratitude to God is due.
We remain in peace and friendship with foreign powers.
The efforts of disloyal citizens of the United States to involve us in
foreign wars to aid an inexcusable insurrection have been unavailing.
Her Britannic Majesty's Government, as was justly expected, have
exercised their authority to prevent the departure of new hostile
expeditions from British ports. The Emperor of France has by a like
proceeding promptly vindicated the neutrality which he proclaimed at the
beginning of the contest. Questions of great intricacy and importance
have arisen out of the blockade and other belligerent operations between
the Government and several of the maritime powers, but they have been
discussed and, as far as was possible, accommodated in a spirit of
frankness, justice, and mutual good will. It is especially gratifying
that our prize courts, by the impartiality of their adjudications, have
commanded the respect and confidence of maritime powers.
The supplemental treaty between the United States and Great Britain for
the suppression of the African slave trade, made on the 17th day of
February last, has been duly ratified and carried into execution. It is
believed that so far as American ports and American citizens are
concerned that inhuman and odious traffic has been brought to an end.
I shall submit for the consideration of the Senate a convention for the
adjustment of possessory claims in Washington Territory arising out of
the treaty of the 15th June, 1846, between the United States and Great
Britain, and which have been the source of some disquiet among the
citizens of that now rapidly improving part of the country.
A novel and important question, involving the extent of the maritime
jurisdiction of Spain in the waters which surround the island of Cuba,
has been debated without reaching an agreement, and it is proposed in an
amicable spirit to refer it to the arbitrament of a friendly power. A
convention for that purpose will be submitted to the Senate.
I have thought it proper, subject to the approval of the Senate, to
concur with the interested commercial powers in an arrangement for the
liquidation of the Scheldt dues, upon the principles which have been
heretofore adopted in regard to the imposts upon navigation in the
waters of Denmark.
The long-pending controversy between this Government and that of Chile
touching the seizure at Sitana, in Peru, by Chilean officers, of a large
amount in treasure belonging to citizens of the United States has been
brought to a close by the award of His Majesty the King of the Belgians,
to whose arbitration the question was referred by the parties. The
subject was thoroughly and patiently examined by that justly respected
magistrate, and although the sum awarded to the claimants may not have
been as large as they expected there is no reason to distrust the wisdom
of His Majesty's decision. That decision was promptly complied with by
Chile when intelligence in regard to it reached that country.
The joint commission under the act of the last session for carrying into
effect the convention with Peru on the subject of claims has been
organized at Lima, and is engaged in the business intrusted to it.
Difficulties concerning interoceanic transit through Nicaragua are in
course of amicable adjustment.
In conformity with principles set forth in my last annual message, I
have received a representative from the United States of Colombia, and
have accredited a minister to that Republic.
Incidents occurring in the progress of our civil war have forced upon my
attention the uncertain state of international questions touching the
rights of foreigners in this country and of United States citizens
abroad. In regard to some governments these rights are at least
partially defined by treaties. In no instance, however, is it expressly
stipulated that in the event of civil war a foreigner residing in this
country within the lines of the insurgents is to be exempted from the
rule which classes him as a belligerent, in whose behalf the Government
of his country can not expect any privileges or immunities distinct from
that character. I regret to say, however, that such claims have been put
forward, and in some instances in behalf of foreigners who have lived in
the United States the greater part of their lives.
There is reason to believe that many persons born in foreign countries
who have declared their intention to become citizens, or who have been
fully naturalized, have evaded the military duty required of them by
denying the fact and thereby throwing upon the Government the burden of
proof. It has been found difficult or impracticable to obtain this
proof, from the want of guides to the proper sources of information.
These might be supplied by requiring clerks of courts where declarations
of intention may be made or naturalizations effected to send
periodically lists of the names of the persons naturalized or declaring
their intention to become citizens to the Secretary of the Interior, in
whose Department those names might be arranged and printed for general
information.
There is also reason to believe that foreigners frequently become
citizens of the United States for the sole purpose of evading duties
imposed by the laws of their native countries, to which on becoming
naturalized here they at once repair, and though never returning to the
United States they still claim the interposition of this Government as
citizens. Many altercations and great prejudices have heretofore arisen
out of this abuse. It is therefore submitted to your serious
consideration. It might be advisable to fix a limit beyond which no
citizen of the United States residing abroad may claim the interposition
of his Government.
The right of suffrage has often been assumed and exercised by aliens
under pretenses of naturalization, which they have disavowed when
drafted into the military service. I submit the expediency of such an
amendment of the law as will make the fact of voting an estoppel against
any plea of exemption from military service or other civil obligation on
the ground of alienage.
In common with other Western powers, our relations with Japan have been
brought into serious jeopardy through the perverse opposition of the
hereditary aristocracy of the Empire to the enlightened and liberal
policy of the Tycoon, designed to bring the country into the society of
nations. It is hoped, although not with entire confidence, that these
difficulties may be peacefully overcome. I ask your attention to the
claim of the minister residing there for the damages he sustained in the
destruction by fire of the residence of the legation at Yedo.
Satisfactory arrangements have been made with the Emperor of Russia,
which, it is believed, will result in effecting a continuous line of
telegraph through that Empire from our Pacific coast.
I recommend to your favorable consideration the subject of an
international telegraph across the Atlantic Ocean, and also of a
telegraph between this capital and the national forts along the Atlantic
seaboard and the Gulf of Mexico. Such communications, established with
any reasonable outlay, would be economical as well as effective aids to
the diplomatic, military, and naval service.
The consular system of the United States, under the enactments of the
last Congress, begins to be self-sustaining, and there is reason to hope
that it may become entirely so with the increase of trade which will
ensue whenever peace is restored. Our ministers abroad have been
faithful in defending American rights. In protecting commercial
interests our consuls have necessarily had to encounter increased labors
and responsibilities growing out of the war. These they have for the
most part met and discharged with zeal and efficiency. This
acknowledgment justly includes those consuls who, residing in Morocco,
Egypt, Turkey, Japan, China, and other Oriental countries, are charged
with complex functions and extraordinary powers.
The condition of the several organized Territories is generally
satisfactory, although Indian disturbances in New Mexico have not been
entirely suppressed. The mineral resources of Colorado, Nevada, Idaho,
New Mexico, and Arizona are proving far richer than has been heretofore
understood. I lay before you a communication on this subject from the
governor of New Mexico. I again submit to your consideration the
expediency of establishing a system for the encouragement of
immigration. Although this source of national wealth and strength is
again flowing with greater freedom than for several years before the
insurrection occurred, there is still a great deficiency of laborers in
every field of industry, especially in agriculture and in our mines, as
well of iron and coal as of the precious metals. While the demand for
labor is much increased here, tens of thousands of persons, destitute of
remunerative occupation, are thronging our foreign consulates and
offering to emigrate to the United States if essential, but very cheap,
assistance can be afforded them. It is easy to see that under the sharp
discipline of civil war the nation is beginning a new life. This noble
effort demands the aid and ought to receive the attention and support of
the Government.
Injuries unforeseen by the Government and unintended may in some cases
have been inflicted on the subjects or citizens of foreign countries,
both at sea and on land, by persons in the service of the United States.
As this Government expects redress from other powers when similar
injuries are inflicted by persons in their service upon citizens of the
United States, we must be prepared to do justice to foreigners. If the
existing judicial tribunals are inadequate to this purpose, a special
court may be authorized, with power to hear and decide such claims of
the character referred to as may have arisen under treaties and the
public law. Conventions for adjusting the claims by joint commission
have been proposed to some governments, but no definitive answer to the
proposition has yet been received from any.
In the course of the session I shall probably have occasion to request
you to provide indemnification to claimants where decrees of restitution
have been rendered and damages awarded by admiralty courts, and in other
cases where this Government may be acknowledged to be liable in
principle and where the amount of that liability has been ascertained by
an informal arbitration.
The proper officers of the Treasury have deemed themselves required by
the law of the United States upon the subject to demand a tax upon the
incomes of foreign consuls in this country. While such a demand may not
in strictness be in derogation of public law, or perhaps of any existing
treaty between the United States and a foreign country, the expediency
of so far modifying the act as to exempt from tax the income of such
consuls as are not citizens of the United States, derived from the
emoluments of their office or from property not situated in the United
States, is submitted to your serious consideration. I make this
suggestion upon the ground that a comity which ought to be reciprocated
exempts our consuls in all other countries from taxation to the extent
thus indicated. The United States, I think, ought not to be
exceptionally illiberal to international trade and commerce.
The operations of the Treasury during the last year have been
successfully conducted. The enactment by Congress of a national banking
law has proved a valuable support of the public credit, and the general
legislation in relation to loans has fully answered the expectations of
its favorers. Some amendments may be required to perfect existing laws,
but no change in their principles or general scope is believed to be
needed.
Since these measures have been in operation all demands on the Treasury,
including the pay of the Army and Navy, have been promptly met and fully
satisfied. No considerable body of troops, it is believed, were ever
more amply provided and more liberally and punctually paid, and it may
be added that by no people were the burdens incident to a great war ever
more cheerfully borne.
The receipts during the year from all sources, including loans and
balance in the Treasury at its commencement, were $901,125,674.86, and
the aggregate disbursements $895,796,630.65, leaving a balance on the
1st of July, 1863, of $5,329,044.21. Of the receipts there were derived
from customs $69,059,642.40, from internal revenue $37,640,787.95, from
direct tax $1,485,103.61, from lands $167,617.17, from miscellaneous
sources $3,046,615.35, and from loans $776,682,361.57, making the
aggregate $901,125,674.86. Of the disbursements there were for the civil
service $23,253,922.08, for pensions and Indians $4,216,520.79, for
interest on public debt $24,729,846.51, for the War Department
$599,298,600.83, for the Navy Department $63,211,105.27, for payment of
funded and temporary debt $181,086,635.07, making the aggregate
$895,796,630.65 and leaving the balance of $5,329,044.21. But the
payment of funded and temporary debt, having been made from moneys
borrowed during the year, must be regarded as merely nominal payments
and the moneys borrowed to make them as merely nominal receipts, and
their amount, $181,086,635.07, should therefore be deducted both from
receipts and disbursements. This being done there remains as actual
receipts $720,039,039.79 and the actual disbursements $714,709,995.58,
leaving the balance as already stated.
The actual receipts and disbursements for the first quarter and the
estimated receipts and disbursements for the remaining three quarters of
the current fiscal year (1864) will be shown in detail by the report of
the Secretary of the Treasury, to which I invite your attention. It is
sufficient to say here that it is not believed that actual results will
exhibit a state of the finances less favorable to the country than the
estimates of that officer heretofore submitted, while it is confidently
expected that at the close of the year both disbursements and debt will
be found very considerably less than has been anticipated.
The report of the Secretary of War is a document of great interest. It
consists of--
1. The military operations of the year, detailed in the report of the
General in Chief.