5. The organization of the invalid corps, and

6. The operation of the several departments of the

Quartermaster-General, Commissary-General, Paymaster-General, Chief of

Engineers, Chief of Ordnance, and Surgeon-General.

It has appeared impossible to make a valuable summary of this report,

except such as would be too extended for this place, and hence I content

myself by asking your careful attention to the report itself.

The duties devolving on the naval branch of the service during the year

and throughout the whole of this unhappy contest have been discharged

with fidelity and eminent success. The extensive blockade has been

constantly increasing in efficiency as the Navy has expanded, yet on so

long a line it has so far been impossible to entirely suppress illicit

trade. From returns received at the Navy Department it appears that more

than 1,000 vessels have been captured since the blockade was instituted,

and that the value of prizes already sent in for adjudication amounts to

over $13,000,000.

The naval force of the United States consists at this time of 588

vessels completed and in the course of completion, and of these 75 are

ironclad or armored steamers. The events of the war give an increased

interest and importance to the Navy which will probably extend beyond

the war itself.

The armored vessels in our Navy completed and in service, or which are

under contract and approaching completion, are believed to exceed in

number those of any other power; but while these may be relied upon for

harbor defense and coast service, others of greater strength and

capacity will be necessary for cruising purposes and to maintain our

rightful position on the ocean.

The change that has taken place in naval vessels and naval warfare since

the introduction of steam as a motive power for ships of war demands

either a corresponding change in some of our existing navy-yards or the

establishment of new ones for the construction and necessary repair of

modern naval vessels. No inconsiderable embarrassment, delay, and public

injury have been experienced from the want of such governmental

establishments. The necessity of such a navy-yard, so furnished, at some

suitable place upon the Atlantic seaboard has on repeated occasions been

brought to the attention of Congress by the Navy Department, and is

again presented in the report of the Secretary which accompanies this

communication. I think it my duty to invite your special attention to

this subject, and also to that of establishing a yard and depot for

naval purposes upon one of the Western rivers. A naval force has been

created on those interior waters, and under many disadvantages, within

little more than two years, exceeding in numbers the whole naval force

of the country at the commencement of the present Administration.

Satisfactory and important as have been the performances of the heroic

men of the Navy at this interesting period, they are scarcely more

wonderful than the success of our mechanics and artisans in the

production of war vessels, which has created a new form of naval power.

Our country has advantages superior to any other nation in our resources

of iron and timber, with inexhaustible quantities of fuel in the

immediate vicinity of both, and all available and in close proximity to

navigable 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 services 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 vacancies 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 past 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 equaled

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 of that year being

$2,645,722.19 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.

The international conference of postal delegates from the principal

countries of Europe and America, which was called at the suggestion of

the Postmaster-General, met at Paris on the 11th of May last and

concluded its deliberations on the 8th of June. The principles

established by the conference as best adapted to facilitate postal

intercourse between nations and as the basis of future postal

conventions inaugurate a general system of uniform international charges

at reduced rates of postage, and can not fail to produce beneficial

results.

I refer you to the report of the Secretary of the Interior, which is

herewith laid before you, for useful and varied information in relation

to the public lands, Indian affairs, patents, pensions, and other

matters of public concern pertaining to his Department.

The quantity of land disposed of during the last and the first quarter

of the present fiscal years was 3,841,549 acres, of which 161,911 acres

were sold for cash, 1,456,514 acres were taken up under the homestead

law, and the residue disposed of under laws granting lands for military

bounties, for railroad and other purposes. It also appears that the sale

of the public lands is largely on the increase.

It has long been a cherished opinion of some of our wisest statesmen

that the people of the United States had a higher and more enduring

interest in the early settlement and substantial cultivation of the

public lands than in the amount of direct revenue to be derived from the

sale of them. This opinion has had a controlling influence in shaping

legislation upon the subject of our national domain. I may cite as

evidence of this the liberal measures adopted in reference to actual

settlers; the grant to the States of the overflowed lands within their

limits, in order to their being reclaimed and rendered fit for

cultivation; the grants to railway companies of alternate sections of

land upon the contemplated lines of their roads, which when completed

will so largely multiply the facilities for reaching our distant

possessions. This policy has received its most signal and beneficent

illustration in the recent enactment granting homesteads to actual

settlers. Since the 1st day of January last the before-mentioned

quantity of 1,456,514 acres of land 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 practicable extent its benefits to those who have

left their homes in the defense 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 remodeling 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 between

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 addressed

to the President and Congress, and which I now have the honor to lay

before you. That this interest is one which ere long will 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 Commissioner 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 armed vessels built upon and

furnished from foreign shores, and we were threatened with such

additions from the same quarter as would sweep our trade from the sea

and raise our blockade. We had failed to elicit from European

Governments anything 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 into 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 General 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, it 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 farther 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 100,000

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, contemporary 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 reference to a

resumption of the national authority within the States wherein that

authority has been suspended, I have thought fit to issue a

proclamation, a copy of which is herewith transmitted.[10] On examination

of this proclamation it will appear, as is believed, that nothing will

be 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 withhold 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.

[Footnote 10: See proclamation dated December 8, 1863, pp. 213-215.]

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 tender the benefits of this provision only to

a State government set up in this particular way? This section of the

Constitution contemplates a case wherein the element within a State

favorable to republican government in the Union may be too feeble for

an opposite and hostile element external to or even within the State,

and such are precisely the cases with which we are now dealing.

An attempt to guarantee and protect a revived State government,

constructed in whole or in preponderating part from the very element

against whose hostility and violence it is to be protected, is simply

absurd. There must be a test by which to separate the opposing elements,

so as to build only from the sound; and that test is a sufficiently

liberal one which accepts as sound whoever will make a sworn recantation

of his former unsoundness.

But if it be proper to require as a test of admission to the political

body an oath of allegiance to the Constitution of the United States and

to the Union under it, why also to the laws and proclamations in regard

to slavery? Those laws and proclamations were enacted and put forth for

the purpose of aiding in the suppression of the rebellion. To give them

their fullest effect there had to be a pledge for their maintenance. In

my judgment, they have aided and will further aid the cause for which

they were intended. To now abandon them would be not only to relinquish

a lever of power, but would also be a cruel and an astounding breach

of faith. I may add at this point that while I remain in my present

position I shall not attempt to retract or modify the emancipation

proclamation, nor shall I return to slavery any person who is free

by the terms of that proclamation or by any of the acts of Congress.

For these and other reasons it is thought best that support of these

measures shall be included in the oath, and it is believed the Executive

may lawfully claim it in return for pardon and restoration of forfeited

rights, which he has clear constitutional power to withhold altogether

or grant upon the terms which he shall deem wisest for the public

interest. It should be observed also that this part of the oath is

subject to the modifying and abrogating power of legislation and supreme

judicial decision.

The proposed acquiescence of the National Executive in any reasonable

temporary State arrangement for the freed people is made with the view

of possibly modifying the confusion and destitution which must at best

attend all classes by a total revolution of labor throughout whole

States. It is hoped that the already deeply afflicted people in those

States may be somewhat more ready to give up the cause of their

affliction if to this extent this vital matter be left to themselves,

while no power of the National Executive to prevent an abuse is abridged

by the proposition.

The suggestion in the proclamation as to maintaining the political

framework of the States on what is called reconstruction is made in the

hope that it may do good without danger of harm. It will save labor and

avoid great confusion.

But why any proclamation now upon this subject? This question is beset

with the conflicting views that the step might be delayed too long or be

taken too soon. In some States the elements for resumption seem ready

for action, but remain inactive apparently for want of a rallying

point--a plan of action. Why shall A adopt the plan of B rather than B

that of A? And if A and B should agree, how can they know but that the

General Government here will reject their plan? By the proclamation a

plan is presented which may be accepted by them as a rallying point, and

which they are assured in advance will not be rejected here. This may

bring them to act sooner than they otherwise would.

The objections to a premature presentation of a plan by the National

Executive consist in the danger of committals on points which could be

more safely left to further developments. Care has been taken to so

shape the document as to avoid embarrassments from this source. Saying

that on certain terms certain classes will be pardoned with rights

restored, it is not said that other classes or other terms will never be

included. Saying that reconstruction will be accepted if presented in

a specified way, it is not said it will never be accepted in any other

way.

The movements by State action for emancipation in several of the States

not included in the emancipation proclamation are matters of profound

gratulation. And while I do not repeat in detail what I have heretofore

so earnestly urged upon this subject, my general views and feelings

remain unchanged; and I trust that Congress will omit no fair

opportunity of aiding these important steps to a great consummation.

In the midst of other cares, however important, we must not lose sight

of the fact that the war power is still our main reliance. To that power

alone can we look yet for a time to give confidence to the people in the

contested regions that the insurgent power will not again overrun them.

Until that confidence shall be established little can be done anywhere

for what is called reconstruction. Hence our chiefest care must still be

directed to the Army and Navy, who have thus far borne their harder part

so nobly and well; and it may be esteemed fortunate that in giving the

greatest efficiency to these indispensable arms we do also honorably

recognize the gallant men, from commander to sentinel, who compose them,

and to whom more than to others the world must stand indebted for the

home of freedom disenthralled, regenerated, enlarged, and perpetuated.

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