The great difficulty and the great hardship consisted in the failure to

provide for the payment of the deficiency in the fiscal year ending the

30th June, 1859. The Department had entered into contracts, in obedience to

existing laws, for the service of that fiscal year, and the contractors

were fairly entitled to their compensation as it became due. The deficiency

as stated in the bill amounted to $3,838,728, but after a careful

settlement of all these accounts it has been ascertained that it amounts to

$4,296,009. With the scanty means at his command the Postmaster-General has

managed to pay that portion of this deficiency which occurred in the first

two quarters of the past fiscal year, ending on the 31st December last. In

the meantime the contractors themselves, under these trying circumstances,

have behaved in a manner worthy of all commendation. They had one resource

in the midst of their embarrassments. After the amount due to each of them

had been ascertained and finally settled according to law, this became a

specific debt of record against the United States, which enabled them to

borrow money on this unquestionable security. Still, they were obliged to

pay interest in consequence of the default of Congress, and on every

principle of justice ought to receive interest from the Government. This

interest should commence from the date when a warrant would have issued for

the payment of the principal had an appropriation been made for this

purpose. Calculated up to the 1st December, it will not exceed $96,660--a

sum not to be taken into account when contrasted with the great

difficulties and embarrassments of a public and private character, both to

the people and the States, which would have resulted from convening and

holding a special session of Congress. For these reasons I recommend the

passage of a bill at as early a day as may be practicable to provide for

the payment of the amount, with interest, due to these last-mentioned

contractors, as well as to make the necessary appropriations for the

service of the Post-Office Department for the current fiscal year.

The failure to pass the Post-Office bill necessarily gives birth to serious

reflections. Congress, by refusing to pass the general appropriation bills

necessary to carry on the Government, may not only arrest its action, but

might even destroy its existence. The Army, the Navy, the judiciary, in

short, every department of the Government, can no longer perform their

functions if Congress refuse the money necessary for their support. If this

failure should teach the country the necessity of electing a full Congress

in sufficient time to enable the President to convene them in any

emergency, even immediately after the old Congress has expired, it will

have been productive of great good. In a time of sudden and alarming

danger, foreign or domestic, which all nations must expect to encounter in

their progress, the very salvation of our institutions may be staked upon

the assembling of Congress without delay. If under such circumstances the

President should find himself in the condition in which he was placed at

the close of the last Congress, with nearly half the States of the Union

destitute of representatives, the consequences might he disastrous. I

therefore recommend to Congress to carry into effect the provisions of the

Constitution on this subject, and to pass a law appointing some day

previous to the 4th March in each year of odd number for the election of

Representatives throughout all the States. They have already appointed a

day for the election of electors for President and Vice-President, and this

measure has been approved by the country.

I would again express a most decided opinion in favor of the construction

of a Pacific railroad, for the reasons stated in my two last annual

messages. When I reflect upon what would be the defenseless condition of

our States and Territories west of the Rocky Mountains in case of a war

with a naval power sufficiently strong to interrupt all intercourse with

them by the routes across the Isthmus, I am still more convinced than ever

of the vast importance of this railroad. I have never doubted the

constitutional competency of Congress to provide for its construction, but

this exclusively under the war-making power. Besides, the Constitution

expressly requires as an imperative duty that "the United States shall

protect each of them [the States] against invasion." I am at a loss to

conceive how this protection can be afforded to California and Oregon

against such a naval power by any other means. I repeat the opinion

contained in my last annual message that it would be inexpedient for the

Government to undertake this great work by agents of its own appointment

and under its direct and exclusive control. This would increase the

patronage of the Executive to a dangerous extent and would foster a system

of jobbing and corruption which no vigilance on the part of Federal

officials could prevent. The construction of this road ought, therefore, to

be intrusted to incorporated companies or other agencies who would exercise

that active and vigilant supervision over it which can be inspired alone by

a sense of corporate and individual interest. I venture to assert that the

additional cost of transporting troops, munitions of war, and necessary

supplies for the Army across the vast intervening plains to our possessions

on the Pacific Coast would be greater in such a war than the whole amount

required to construct the road. And yet this resort would after all be

inadequate for their defense and protection.

We have yet scarcely recovered from the habits of extravagant expenditure

produced by our overflowing Treasury during several years prior to the

commencement of my Administration. The financial reverses which we have

since experienced ought to teach us all to scrutinize our expenditures with

the greatest vigilance and to reduce them to the lowest possible point. The

Executive Departments of the Government have devoted themselves to the

accomplishment of this object with considerable success, as will appear

from their different reports and estimates. To these I invite the scrutiny

of Congress, for the purpose of reducing them still lower, if this be

practicable consistent with the great public interests of the country. In

aid of the policy of retrenchment, I pledge myself to examine closely the

bills appropriating lands or money, so that if any of these should

inadvertently pass both Houses, as must sometimes be the case, I may afford

them an opportunity for reconsideration. At the same time, we ought never

to forget that true public economy consists not in withholding the means

necessary to accomplish important national objects confided to us by the

Constitution, but in taking care that the money appropriated for these

purposes shall be faithfully and frugally expended.

It will appear from the report of the Secretary of the Treasury that it is

extremely doubtful, to say the least, whether we shall be able to pass

through the present and the next fiscal year without providing additional

revenue. This can only be accomplished by strictly confining the

appropriations within the estimates of the different Departments, without

making an allowance for any additional expenditures which Congress may

think proper, in their discretion, to authorize, and without providing for

the redemption of any portion of the $20,000,000 of Treasury notes which

have been already issued. In the event of a deficiency, which I consider

probable, this ought never to be supplied by a resort to additional loans.

It would be a ruinous practice in the days of peace and prosperity to go on

increasing the national debt to meet the ordinary expenses of the

Government. This policy would cripple our resources and impair our credit

in case the existence of war should render it necessary to borrow money.

Should such a deficiency occur as I apprehend, I would recommend that the

necessary revenue be raised by an increase of our present duties on

imports. I need not repeat the opinions expressed in my last annual message

as to the best mode and manner of accomplishing this object, and shall now

merely observe that these have since undergone no change. The report of the

Secretary of the Treasury will explain in detail the operations of that

Department of the Government. The receipts into the Treasury from all

sources during the fiscal year ending June 30, 1859, including the loan

authorized by the act of June 14, 1858, and the issues of Treasury notes

authorized by existing laws, were $81,692,471.01, which sum, with the

balance of $6,398,316.10 remaining in the Treasury at the commencement of

that fiscal year, made an aggregate for the service of the year of

$88,090,787.11.

The public expenditures during the fiscal year ending June 30, 1859,

amounted to $83,751,511.57. Of this sum $17,405,285.44 were applied to the

payment of interest on the public debt and the redemption of the issues of

Treasury notes. The expenditures for all other branches of the public

service during that fiscal year were therefore $66,346,226.13. The balance

remaining in the Treasury on the 1st July, 1859, being the commencement of

the present fiscal year, was $4,339,275.54. The receipts into the Treasury

during the first quarter of the present fiscal year, commencing July 1,

1859, were $20,618,865.85. Of this amount $3,821,300 was received on

account of the loan and the issue of Treasury notes, the amount of

$16,797,565.85 having been received during the quarter from the ordinary

sources of public revenue. The estimated receipts for the remaining three

quarters of the present fiscal year, to June 30, 1860, are $50,426,400. Of

this amount it is estimated that $5,756,400 will be received for Treasury

notes which may be reissued under the fifth section of the act of 3d March

last, and $1,170,000 on account of the loan authorized by the act of June

14, 1858, making $6,926,400 from these extraordinary sources, and

$43,500,000 from the ordinary sources of the public revenue, making an

aggregate, with the balance in the Treasury on the 1st July, 1859, of

$75,384,541.89 for the estimated means of the present fiscal year, ending

June 30, 1860.

The expenditures during the first quarter of the present fiscal year were

$20,007,174.76. Four million six hundred and sixty-four thousand three

hundred and sixty-six dollars and seventy-six cents of this sum were

applied to the payment of interest on the public debt and the redemption of

the issues of Treasury notes, and the remainder, being $15,342,808, were

applied to ordinary expenditures during the quarter. The estimated

expenditures during the remaining three quarters, to June 30, 1860, are

$40,995,558.23, of which sum $2,886,621.34 are estimated for the interest

on the public debt. The ascertained and estimated expenditures for the

fiscal year ending June 30, 1860, on account of the public debt are

accordingly $7,550,988.10, and for the ordinary expenditures of the

Government $53,451,744.89, making an aggregate of $61,002,732.99, leaving

an estimated balance in the Treasury on June 30, 1860, of $14,381,808.40.

The estimated receipts during the next fiscal year, ending June 30, 1861,

are $66,225,000, which, with the balance estimated, as before stated, as

remaining in the Treasury on the 30th June, 1860, will make an aggregate

for the service of the next fiscal year of $80,606,808.40.

The estimated expenditures during the next fiscal year, ending 30th June,

1861, are $66,714,928.79. Of this amount $3,386,621.34 will be required to

pay the interest on the public debt, leaving the sum of $63,328,307.45 for

the estimated ordinary expenditures during the fiscal year ending 30th

June, 1861. Upon these estimates a balance will be left in the Treasury on

the 30th June, 1861, of $13,891,879.61. But this balance, as well as that

estimated to remain in the Treasury on the 1st July, 1860, will be reduced

by such appropriations as shall be made by law to carry into effect certain

Indian treaties during the present fiscal year, asked for by the Secretary

of the Interior, to the amount of $539,350; and upon the estimates of the

postmaster-General for the service of his Department the last fiscal year,

ending 30th June, 1859, amounting to $4,296,009, together with the further

estimate of that officer for the service of the present fiscal year, ending

30th June, 1860, being $5,526,324, making an aggregate of $10,361,683.

Should these appropriations be made as requested by the proper Departments,

the balance in the Treasury on the 30th June, 1861, will not, it is

estimated, exceed $3,530,196.61.

I transmit herewith the reports of the Secretaries of War, of the Navy, of

the Interior, and of the postmaster-General. They each contain valuable

information and important recommendations well worthy of the serious

consideration of Congress. It will appear from the report of the Secretary

of War that the Army expenditures have been materially reduced by a system

of rigid economy, which in his opinion offers every guaranty that the

reduction will be permanent. The estimates of the Department for the next

have been reduced nearly $2,000,000 below the estimates for the present

fiscal year and $500,000 below the amount granted for this year at the last

session of Congress.

The expenditures of the Post-Office Department during the past fiscal year,

ending on the 30th June, 1859, exclusive of payments for mail service

specially provided for by Congress out of the general Treasury, amounted to

$14,964,493.33 and its receipts to $7,968,484.07, showing a deficiency to

be supplied from the Treasury of $6,996,009.26, against $5,235,677.15 for

the year ending 30th June, 1858. The increased cost of transportation,

growing out of the expansion of the service required by Congress, explains

this rapid augmentation of the expenditures. It is gratifying, however, to

observe an increase of receipts for the year ending on the 30th of June,

1859, equal to $481,691.21 compared with those in the year ending on the

30th June, 1858.

It is estimated that the deficiency for the current fiscal year will be

$5,988,424.04, but that for the year ending 30th June, 1861, it will not

exceed $1,342,473.90 should Congress adopt the measures of reform proposed

and urged by the Postmaster-General. Since the month of March retrenchments

have been made in the expenditures amounting to $1,826,471 annually, which,

however, did not take effect until after the commencement of the present

fiscal year. The period seems to have arrived for determining the question

whether this Department shall become a permanent and ever-increasing charge

upon the Treasury, or shall be permitted to resume the self-sustaining

policy which had so long controlled its administration. The course of

legislation recommended by the Postmaster-General for the relief of the

Department from its present embarrassments and for restoring it to its

original independence is deserving of your early and earnest

consideration.

In conclusion I would again commend to the just liberality of Congress the

local interests of the District of Columbia. Surely the city bearing the

name of Washington, and destined, I trust, for ages to be the capital of

our united, free, and prosperous Confederacy, has strong claims on our

favorable regard.

***

State of the Union Address

James Buchanan

December 3, 1860

Fellow-Citizens of the Senate and House of Representatives:

Throughout the year since our last meeting the country has been eminently

prosperous in all its material interests. The general health has been

excellent, our harvests have been abundant, and plenty smiles throughout

the laud. Our commerce and manufactures have been prosecuted with energy

and industry, and have yielded fair and ample returns. In short, no nation

in the tide of time has ever presented a spectacle of greater material

prosperity than we have done until within a very recent period.

Why is it, then, that discontent now so extensively prevails, and the Union

of the States, which is the source of all these blessings, is threatened

with destruction?

The long-continued and intemperate interference of the Northern people with

the question of slavery in the Southern States has at length produced its

natural effects. The different sections of the Union are now arrayed

against each other, and the time has arrived, so much dreaded by the Father

of his Country, when hostile geographical parties have been formed.

I have long foreseen and often forewarned my countrymen of the now

impending danger. This does not proceed solely from the claim on the part

of Congress or the Territorial legislatures to exclude slavery from the

Territories, nor from the efforts of different States to defeat the

execution of the fugitive-slave law. All or any of these evils might have

been endured by the South without danger to the Union (as others have been)

in the hope that time and reflection might apply the remedy. The immediate

peril arises not so much from these causes as from the fact that the

incessant and violent agitation of the slavery question throughout the

North for the last quarter of a century has at length produced its malign

influence on the slaves and inspired them with vague notions of freedom.

Hence a sense of security no longer exists around the family altar. This

feeling of peace at home has given place to apprehensions of servile

insurrections. Many a matron throughout the South retires at night in dread

of what may befall herself and children before the morning. Should this

apprehension of domestic danger, whether real or imaginary, extend and

intensify itself until it shall pervade the masses of the Southern people,

then disunion will become inevitable. Self-preservation is the first law of

nature, and has been implanted in the heart of man by his Creator for the

wisest purpose; and no political union, however fraught with blessings and

benefits in all other respects, can long continue if the necessary

consequence be to render the homes and the firesides of nearly half the

parties to it habitually and hopelessly insecure. Sooner or later the bonds

of such a union must be severed. It is my conviction that this fatal period

has not yet arrived, and my prayer to God is that He would preserve the

Constitution and the Union throughout all generations.

But let us take warning in time and remove the cause of danger. It can not

be denied that for five and twenty years the agitation at the North against

slavery has been incessant. In 1835 pictorial handbills and inflammatory

appeals were circulated extensively throughout the South of a character to

excite the passions of the slaves, and, in the language of General Jackson,

"to stimulate them to insurrection and produce all the horrors of a servile

war." This agitation has ever since been continued by the public press, by

the proceedings of State and county conventions and by abolition sermons

and lectures. The time of Congress has been occupied in violent speeches on

this never-ending subject, and appeals, in pamphlet and other forms,

indorsed by distinguished names, have been sent forth from this central

point and spread broadcast over the Union.

How easy would it be for the American people to settle the slavery question

forever and to restore peace and harmony to this distracted country! They,

and they alone, can do it. All that is necessary to accomplish the object,

and all for which the slave States have ever contended, is to be let alone

and permitted to manage their domestic institutions in their own way. As

sovereign States, they, and they alone, are responsible before God and the

world for the slavery existing among them. For this the people of the North

are not more responsible and have no more fight to interfere than with

similar institutions in Russia or in Brazil.

Upon their good sense and patriotic forbearance I confess I still greatly

rely. Without their aid it is beyond the power of any President, no matter

what may be his own political proclivities, to restore peace and harmony

among the States. Wisely limited and restrained as is his power under our

Constitution and laws, he alone can accomplish but little for good or for

evil on such a momentous question.

And this brings me to observe that the election of any one of our

fellow-citizens to the office of President does not of itself afford just

cause for dissolving the Union. This is more especially true if his

election has been effected by a mere plurality, and not a majority of the

people, and has resulted from transient and temporary causes, which may

probably never again occur. In order to justify a resort to revolutionary

resistance, the Federal Government must be guilty of "a deliberate,

palpable, and dangerous exercise" of powers not granted by the

Constitution.

The late Presidential election, however, has been held in strict conformity

with its express provisions. How, then, can the result justify a revolution

to destroy this very Constitution? Reason, justice, a regard for the

Constitution, all require that we shall wait for some overt and dangerous

act on the part of the President elect before resorting to such a remedy.

It is said, however, that the antecedents of the President-elect have been

sufficient to justify the fears of the South that he will attempt to invade

their constitutional rights. But are such apprehensions of contingent

danger in the future sufficient to justify the immediate destruction of the

noblest system of government ever devised by mortals? From the very nature

of his office and its high responsibilities he must necessarily be

conservative. The stern duty of administering the vast and complicated

concerns of this Government affords in itself a guaranty that he will not

attempt any violation of a clear constitutional right.

After all, he is no more than the chief executive officer of the

Government. His province is not to make but to execute the laws. And it is

a remarkable fact in our history that, notwithstanding the repeated efforts

of the antislavery party, no single act has ever passed Congress, unless we

may possibly except the Missouri compromise, impairing in the slightest

degree the rights of the South to their property in slaves; and it may also

be observed, judging from present indications, that no probability exists

of the passage of such an act by a majority of both Houses, either in the

present or the next Congress. Surely under these circumstances we ought to

be restrained from present action by the precept of Him who spake as man

never spoke, that "sufficient unto the day is the evil thereof." The day of

evil may never come unless we shall rashly bring it upon ourselves.

It is alleged as one cause for immediate secession that the Southern States

are denied equal rights with the other States in the common Territories.

But by what authority are these denied? Not by Congress, which has never

passed, and I believe never will pass, any act to exclude slavery from

these Territories; and certainly not by the Supreme Court, which has

solemnly decided that slaves are property, and, like all other property,

their owners have a right to take them into the common Territories and hold

them there under the protection of the Constitution.

So far then, as Congress is concerned, the objection is not to anything

they have already done, but to what they may do hereafter. It will surely

be admitted that this apprehension of future danger is no good reason for

an immediate dissolution of the Union. It is true that the Territorial

legislature of Kansas, on the 23d February, 1860, passed in great haste an

act over the veto of the governor declaring that slavery "is and shall be

forever prohibited in this Territory." Such an act, however, plainly

violating the rights of property secured by the Constitution, will surely

be declared void by the judiciary whenever it shall be presented in a legal

form.

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