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. 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.

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 in included.

Saying specified way, it is said that reconstruction will be accepted

if presented in a 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.

***

State of the Union Address

Abraham Lincoln

December 6, 1864

Fellow-Citizens of the Senate and House of Representatives:

Again the blessings of health and abundant harvests claim our

profoundest gratitude to Almighty God.

The condition of our foreign affairs is reasonably satisfactory.

Mexico continues to be a theater of civil war. While our political

relations with that country have undergone no change, we have at the

same time strictly maintained neutrality between the belligerents.

At the request of the States of Costa Rica and Nicaragua, a competent

engineer has been authorized to make a survey of the river San Juan and

the port of San Juan. It is a source of much satisfaction that the

difficulties which for a moment excited some political apprehensions

and caused a closing of the interoceanic transit route have been

amicably adjusted, and that there is a good prospect that the route

will soon be reopened with an increase of capacity and adaptation. We

could not exaggerate either the commercial or the political importance

of that great improvement.

It would be doing injustice to an important South American State not to

acknowledge the directness, frankness, and cordiality with which the

United States of Colombia have entered into intimate relations with

this Government. A claims convention has been constituted to complete

the unfinished work of the one which closed its session in 1861.

The new liberal constitution of Venezuela having gone into effect with

the universal acquiescence of the people, the Government under it has

been recognized and diplomatic intercourse with it has opened in a

cordial and friendly spirit. The long-deferred Aves Island claim has

been satisfactorily paid and discharged.

Mutual payments have been made of the claims awarded by the late joint

commission for the settlement of claims between the United States and

Peru. An earnest and cordial friendship continues to exist between the

two countries, and such efforts as were in my power have been used to

remove misunderstanding and avert a threatened war between Peru and

Spain.

Our relations are of the most friendly nature with Chile, the Argentine

Republic, Bolivia, Costa Rica, Paraguay, San Salvador, and Hayti.

During the past year no differences of any kind have arisen with any of

those Republics, and, on the other hand, their sympathies with the

United States are constantly expressed with cordiality and earnestness.

The claim arising from the seizure of the cargo of the brig Macedonian

in 1821 has been paid in full by the Government of Chile. Civil war

continues in the Spanish part of San Domingo, apparently without

prospect of an early close.

Official correspondence has been freely opened with Liberia, and it

gives us a pleasing view of social and political progress in that

Republic. It may be expected to derive new vigor from American

influence, improved by the rapid disappearance of slavery in the United

States.

I solicit your authority to furnish to the Republic a gunboat at

moderate cost, to be reimbursed to the United States by installments.

Such a vessel is needed for the safety of that State against the native

African races, and in Liberian hands it would be more effective in

arresting the African slave trade than a squadron in our own hands. The

possession of the least organized naval force would stimulate a

generous ambition in the Republic, and the confidence which we should

manifest by furnishing it would win forbearance and favor toward the

colony from all civilized nations.

The proposed overland telegraph between America and Europe, by the way

of Behrings Straits and Asiatic Russia, which was sanctioned by

Congress at the last session, has been undertaken, under very favorable

circumstances, by an association of American citizens, with the cordial

good will and support as well of this Government as of those of Great

Britain and Russia. Assurances have been received from most of the

South American States of their high appreciation of the enterprise and

their readiness to cooperate in constructing lines tributary to that

world-encircling communication. I learn with much satisfaction that the

noble design of a telegraphic communication between the eastern coast

of America and Great Britain has been renewed, with full expectation of

its early accomplishment.

Thus it is hoped that with the return of domestic peace the country

will be able to resume with energy and advantage its former high career

of commerce and civilization.

Our very popular and estimable representative in Egypt died in April

last. An unpleasant altercation which arose between the temporary

incumbent of the office and the Government of the Pasha resulted in a

suspension of intercourse. The evil was promptly corrected on the

arrival of the successor in the consulate, and our relations with

Egypt, as well as our relations with the Barbary Powers, are entirely

satisfactory.

The rebellion which has so long been flagrant in China has at last been

suppressed, with the cooperating good offices of this Government and of

the other Western commercial States. The judicial consular

establishment there has become very difficult and onerous, and it will

need legislative revision to adapt it to the extension of our commerce

and to the more intimate intercourse which has been instituted with the

Government and people of that vast Empire. China seems to be accepting

with hearty good will the conventional laws which regulate commercial

and social intercourse among the Western nations.

Owing to the peculiar situation of Japan and the anomalous form of its

Government, the action of that Empire in performing treaty stipulations

is inconstant and capricious. Nevertheless, good progress has been

effected by the Western powers, moving with enlightened concert. Our

own pecuniary claims have been allowed or put in course of settlement,

and the inland sea has been reopened to commerce. There is reason also

to believe that these proceedings have increased rather than diminished

the friendship of Japan toward the United States.

The ports of Norfolk, Fernandina, and Pensacola have been opened by

proclamation. It is hoped that foreign merchants will now consider

whether it is not safer and more profitable to themselves, as well as

just to the United States, to resort to these and other open ports than

it is to pursue, through many hazards and at vast cost, a contraband

trade with other ports which are closed, if not by actual military

occupation, at least by a lawful and effective blockade.

For myself, I have no doubt of the power and duty of the Executive,

under the law of nations, to exclude enemies of the human race from an

asylum in the United States. If Congress should think that proceedings

in such cases lack the authority of law, or ought to be further

regulated by it, I recommend that provision be made for effectually

preventing foreign slave traders from acquiring domicile and facilities

for their criminal occupation in our country.

It is possible that if it were new and open question the maritime

powers, with the lights they now enjoy, would not concede the

privileges of a naval belligerent to the insurgents of the United

States, destitute, as they are, and always have been, equally of ships

of war and of ports and harbors. Disloyal emissaries have been neither

less assiduous nor more successful during the last year than they were

before that time in their efforts under favor of that privilege, to

embroil our country in foreign wars. The desire and determination of

the governments of the maritime states to defeat that design are

believed to be as sincere as and can not be more earnest than our own.

Nevertheless, unforeseen political difficulties have arisen, especially

in Brazilian and British ports and on the northern boundary of the

United States, which have required, and are likely to continue to

require, the practice of constant vigilance and a just and conciliatory

spirit on the part of the United States, as well as of the nations

concerned and their governments.

Commissioners have been appointed under the treaty with Great Britain

on the adjustment of the claims of the Hudsons Bay and Pugets Sound

Agricultural Companies, in Oregon, and are now proceeding to the

execution of the trust assigned to them.

In view of the insecurity of life and property in the region adjacent

to the Canadian border, by reason of recent assaults and depredations

committed by inimical and desperate persons who are harbored there, it

has been thought proper to give notice that after the expiration of six

months, the period conditionally stipulated in the existing arrangement

with Great Britain, the United States must hold themselves at liberty

to increase their naval armament upon the Lakes if they shall find that

proceeding necessary. The condition of the border will necessarily come

into consideration in connection with the question of continuing or

modifying the rights of transit from Canada through the United States,

as well as the regulation of imposts, which were temporarily

established by the reciprocity treaty of the 5th June, 1854.

I desire, however, to be understood while making this statement that

the colonial authorities of Canada are not deemed to be intentionally

unjust or unfriendly toward the United States, but, on the contrary,

there is every reason to expect that, with the approval of the Imperial

Government, they will take the necessary measures to prevent new

incursions across the border.

The act passed at the last session for the encouragement of immigration

has so far as was possible been put into operation. It seems to need

amendment which will enable the officers of the Government to prevent

the practice of frauds against the immigrants while on their way and on

their arrival in the ports, so as to secure them here a free choice of

avocations and places of settlement. A liberal disposition toward this

great national policy is manifested by most of the European States, and

ought to be reciprocated on our part by giving the immigrants effective

national protection. I regard our immigrants as one of the principal

replenishing streams which are appointed by Providence to repair the

ravages of internal war and its wastes of national strength and health.

All that is necessary is to secure the flow of that stream in its

present fullness, and to that end the Government must in every way make

it manifest that it neither needs nor designs to impose involuntary

military service upon those who come from other lands to cast their lot

in our country.

The financial affairs of the Government have been successfully

administered during the last year. The legislation of the last session

of Congress has beneficially affected the revenues, although sufficient

time has not yet elapsed to experience the full effect of several of

the provisions of the acts of Congress imposing increased taxation.

The receipts during the year from all sources, upon the basis of

warrants signed by the Secretary of the Treasury, including loans and

the balance in the Treasury on the 1st day of July, 1863, were

$1,394,796,007.62, and the aggregate disbursements, upon the same

basis, were $1,298,056,101.89, leaving a balance in the Treasury, as

shown by warrants, of $96,739,905.73.

Deduct from these amounts the amount of the principal of the public

debt redeemed and the amount of issues in substitution therefor, and

the actual cash operations of the Treasury were: Receipts,

$884,076,646.57; disbursements, $865,234,087.86; which leaves a cash

balance in the Treasury of $18,842,558.71.

Of the receipts there were derived from customs $102,316,152.99, from

lands $588,333.29, from direct taxes $475,648.96, from internal revenue

$109,741,134.10, from miscellaneous sources $47,511,448.10, and from

loans applied to actual expenditures, including former balance,

$623,443,929.13.

There were disbursed for the civil service $27,505,599.46, for pensions

and Indians $7,517,930.97, for the War Department $690,791,842.97, for

the Navy Department $85,733,292.77, for interest on the public debt

$53,685,421.69, making an aggregate of $865,234,087.86 and leaving a

balance in the Treasury of $18,842,558.71, as before stated.

For the actual receipts and disbursements for the first quarter and the

estimated receipts and disbursements for the three remaining quarters

of the current fiscal year, and the general operations of the Treasury

in detail, I refer you to the report of the Secretary of the Treasury.

I concur with him in the opinion that the proportion of moneys required

to meet the expenses consequent upon the war derived from taxation

should be still further increased; and I earnestly invite your

attention to this subject, to the end that there may be such additional

legislation as shall be required to meet the just expectations of the

Secretary.

The public debt on the 1st day of July last, as appears by the books of

the Treasury, amounted to $1,740,690,489.49. Probably, should the war

continue for another year, that amount may be increased by not far from

five hundred millions. Held, as it is, for the most part by our own

people, it has become a substantial branch of national, though private,

property. For obvious reasons the more nearly this property can be

distributed among all the people the better. To favor such general

distribution, greater inducements to become owners might, perhaps, with

good effect and without injury be presented to persons of limited

means. With this view I suggest whether it might not be both competent

and expedient for Congress to provide that a limited amount of some

future issue of public securities might be held by any bona fide

purchaser exempt from taxation and from seizure for debt, under such

restrictions and limitations as might be necessary to guard against

abuse of so important a privilege. This would enable every prudent

person to set aside a small annuity against a possible day of want.

Privileges like these would render the possession of such securities to

the amount limited most desirable to every person of small means who

might be able to save enough for the purpose. The great advantage of

citizens being creditors as well as debtors with relation to the public

debt is obvious. Men readily perceive that they can not be much

oppressed by a debt which they owe to themselves.

The public debt on the 1st day of July last, although somewhat

exceeding the estimate of the Secretary of the Treasury made to

Congress at the commencement of the last session, falls short of the

estimate of that officer made in the preceding December as to its

probable amount at the beginning of this year by the sum of

$3,995,097.31. This fact exhibits a satisfactory condition and conduct

of the operations of the Treasury.

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