In answer to your question, "Has it not been publicly stated in the

newspapers, and apparently proved as a fact, that from the commencement of

the war the enemy was continually supplied with information by some of the

confidential subordinates of as important an officer as Adjutant-General

Thomas?" I must say "No," as far as my knowledge extends. And I add that

if you can give any tangible evidence upon the subject, I will thank you

to come to this city and do so.

Very truly your friend,

A. LINCOLN.

TELEGRAM TO GENERAL A. E. BURNSIDE.

EXECUTIVE MANSION, WASHINGTON, November 25, 1862.

MAJOR-GENERAL BURNSIDE, Falmouth, Virginia:

If I should be in boat off Aquia Creek at dark tomorrow (Wednesday)

evening, could you, without inconvenience, meet me and pass an hour or two

with me?

A. LINCOLN.

TO ATTORNEY-GENERAL BATES.

EXECUTIVE MANSION, WASHINGTON,

November 29, 1862.

HON. ATTORNEY-GENERAL.

MY DEAR SIR:--Few things perplex me more than this question between

Governor Gamble and the War Department, as to whether the peculiar force

organized by the former in Missouri are State troops or United States

troops. Now, this is either an immaterial or a mischievous question.

First, if no more is desired than to have it settled what name the force

is to be called by, it is immaterial. Secondly, if it is desired for more

than the fixing a name, it can only be to get a position from which to

draw practical inferences; then it is mischievous. Instead of settling one

dispute by deciding the question, I should merely furnish a nest-full of

eggs for hatching new disputes. I believe the force is not strictly either

"State troops" or "United States troops." It is of mixed character. I

therefore think it is safer, when a practical question arises, to

decide that question directly, and not indirectly by deciding a general

abstraction supposed to include it, and also including a great deal more.

Without dispute Governor Gamble appoints the officers of this force, and

fills vacancies when they occur. The question now practically in dispute

is: Can Governor Gamble make a vacancy by removing an officer or accepting

a resignation? Now, while it is proper that this question shall be

settled, I do not perceive why either Governor Gamble or the government

here should care which way it is settled. I am perplexed with it only

because there seems to be pertinacity about it. It seems to me that it

might be either way without injury to the service; or that the offer of

the Secretary of War to let Governor Gamble make vacancies, and he (the

Secretary) to ratify the making of them, ought to be satisfactory.

Yours truly,

A. LINCOLN

TELEGRAM TO GENERAL CURTIS.

[Cipher.]

WASHINGTON, November 30, 1862.

MAJOR-GENERAL CURTIS, Saint Louis, Missouri:

Frank Blair wants Manter's Thirty-second, Curly's Twenty seventh, Boyd's

Twenty-fourth and the Ninth and Tenth Cavalry to go with him down the

river. I understand it is with you to decide whether he shall have them

and if so, and if also it is consistent with the public service, you will

oblige me a good deal by letting him have them.

A. LINCOLN.

ON EXECUTING 300 INDIANS

LETTER TO JUDGE-ADVOCATE-GENERAL.

EXECUTIVE MANSION, WASHINGTON, December 1, 1862.

JUDGE-ADVOCATE-GENERAL.

SIR:--Three hundred Indians have been sentenced to death in Minnesota by

a military commission, and execution only awaits my action. I wish your

legal opinion whether if I should conclude to execute only a part of them,

I must myself designate which, or could I leave the designation to some

officer on the ground?

Yours very truly,

A. LINCOLN.

ANNUAL MESSAGE TO CONGRESS, DECEMBER 1, 1862.

FELLOW-CITIZENS OF THE SENATE AND HOUSE OF REPRESENTATIVES--Since your

last annual assembling another year of health and bountiful harvests

has passed; and while it has not pleased the Almighty to bless us with a

return of peace, we can but press on, guided by the best light he gives

us, trusting that in his own good time and wise way all will yet be well.

The correspondence touching foreign affairs which has taken place during

the last year is herewith submitted, in virtual compliance with a request

to that effect, made by the House of Representatives near the close of the

last session of Congress.

If the condition of our relations with other nations is less gratifying

than it has usually been at former periods, it is certainly more

satisfactory than a nation so unhappily distracted as we are might

reasonably have apprehended. In the month of June last there were some

grounds to expect that the maritime powers which, at the beginning of

our domestic difficulties, so unwisely and unnecessarily, as we think,

recognized the insurgents as a belligerent, would soon recede from that

position, which has proved only less injurious to themselves than to

our own country. But the temporary reverses which afterward befell the

national arms, and which were exaggerated by our own disloyal citizens

abroad, have hitherto delayed that act of simple justice.

The civil war, which has so radically changed, for the moment, the

occupations and habits of the American people, has necessarily disturbed

the social condition, and affected very deeply the prosperity, of the

nations with which we have carried on a commerce that has been steadily

increasing throughout a period of half a century. It has, at the same

time, excited political ambitions and apprehensions which have produced

a profound agitation throughout the civilized world. In this unusual

agitation we have forborne from taking part in any controversy between

foreign states, and between parties or factions in such states. We have

attempted no propagandism and acknowledged no revolution, but we have left

to every nation the exclusive conduct and management of its own affairs.

Our struggle has been, of course, contemplated by foreign nations

with reference less to its own merits than to its supposed and often

exaggerated effects and consequences resulting to those nations

themselves, nevertheless, complaint on the part of this government, even

if it were just, would certainly be unwise.

The treaty with Great Britain for the suppression of the slave trade has

been put into operation with a good prospect of complete success. It is

an occasion of special pleasure to acknowledge that the execution of it

on the part of her Majesty's government has been marked with a jealous

respect for the authority of the United States and the rights of their

moral and loyal citizens.

The convention with Hanover for the abolition of the state dues has been

carried into full effect under the act of Congress for that purpose.

A blockade of 3000 miles of seacoast could not be established and

vigorously enforced in a season of great commercial activity like

the present without committing occasional mistakes and inflicting

unintentional injuries upon foreign nations and their subjects.

A civil war occurring in a country where foreigners reside and carry on

trade under treaty stipulations is necessarily fruitful of complaints

of the violation of neutral rights. All such collisions tend to excite

misapprehensions, and possibly to produce mutual reclamations between

nations which have a common interest in preserving peace and friendship.

In clear cases of these kinds I have so far as possible heard and

redressed complaints which have been presented by friendly powers. There

is still, however, a large and an augmenting number of doubtful cases

upon which the government is unable to agree with the governments whose

protection is demanded by the claimants. There are, moreover, many cases

in which the United States or their citizens suffer wrongs from the naval

or military authorities of foreign nations which the governments of those

states are not at once prepared to redress. I have proposed to some of the

foreign states thus interested mutual conventions to examine and adjust

such complaints. This proposition has been made especially to Great

Britain, to France, to Spain, and to Prussia. In each case it has been

kindly received, but has not yet been formally adopted.

I deem it my duty to recommend an appropriation in behalf of the owners of

the Norwegian bark Admiral P. Tordenskiold, which vessel was in May, 1861,

prevented by the commander of the blockading force off Charleston from

leaving that port with cargo, notwithstanding a similar privilege had

shortly before been granted to an English vessel. I have directed the

Secretary of State to cause the papers in the case to be communicated to

the proper committees.

Applications have been made to me by many free Americans of African

descent to favor their emigration, with a view to such colonization as

was contemplated in recent acts of Congress, Other parties, at home

and abroad--some from interested motives, others upon patriotic

considerations, and still others influenced by philanthropic

sentiments--have suggested similar measures, while, on the other hand,

several of the Spanish American republics have protested against the

sending of such colonies to their respective territories. Under these

circumstances I have declined to move any such colony to any state without

first obtaining the consent of its government, with an agreement on its

part to receive and protect such emigrants in all the rights of freemen;

and I have at the same time offered to the several states situated within

the Tropics, or having colonies there, to negotiate with them, subject to

the advice and consent of the Senate, to favor the voluntary emigration

of persons of that class to their respective territories, upon conditions

which shall be equal, just, and humane. Liberia and Haiti are as yet the

only countries to which colonists of African descent from here could go

with certainty of being received and adopted as citizens; and I regret

to say such persons contemplating colonization do not seem so willing to

migrate to those countries as to some others, nor so willing as I think

their interest demands. I believe, however, opinion among them in this

respect is improving, and that ere long there will be an augmented and

considerable migration to both these countries from the United States.

The new commercial treaty between the United States and the Sultan of

Turkey has been carried into execution.

A commercial and consular treaty has been negotiated, subject to the

Senate's consent, with Liberia, and a similar negotiation is now pending

with the Republic of Haiti. A considerable improvement of the national

commerce is expected to result from these measures.

Our relations with Great Britain, France, Spain, Portugal, Russia,

Prussia, Denmark, Sweden, Austria, the Netherlands, Italy, Rome, and the

other European states remain undisturbed. Very favorable relations also

continue to be maintained with Turkey, Morocco, China, and Japan.

During the last year there has not only been no change of our previous

relations with the independent states of our own continent, but more

friendly sentiments than have heretofore existed are believed to

be entertained by these neighbors, whose safety and progress are so

intimately connected with our own. This statement especially applies to

Mexico, Nicaragua, Costa Rica, Honduras, Peru, and Chile.

The commission under the convention with the Republic of New Granada

closed its session without having audited and passed upon all the claims

which were submitted to it. A proposition is pending to revive the

convention, that it may be able to do more complete justice. The joint

commission between the United States and the Republic of Costa Rica has

completed its labors and submitted its report.

I have favored the project for connecting the United States with Europe by

an Atlantic telegraph, and a similar project to extend the telegraph from

San Francisco to connect by a Pacific telegraph with the line which is

being extended across the Russian Empire.

The Territories of the United States, with unimportant exceptions, have

remained undisturbed by the civil war; and they are exhibiting such

evidence of prosperity as justifies an expectation that some of them will

soon be in a condition to be organized as States and be constitutionally

admitted into the Federal Union.

The immense mineral resources of some of those Territories ought to be

developed as rapidly as possible. Every step in that direction would have

a tendency to improve the revenues of the government and diminish the

burdens of the people. It is worthy of your serious consideration whether

some extraordinary measures to promote that end cannot be adopted. The

means which suggests itself as most likely to be effective is a scientific

exploration of the mineral regions in those Territories with a view to the

publication of its results at home and in foreign countries--results which

cannot fail to be auspicious.

The condition of the finances win claim your most diligent consideration.

The vast expenditures incident to the military and naval operations

required for the suppression of the rebellion have hitherto been met with

a promptitude and certainty unusual in similar circumstances, and the

public credit has been fully maintained. The continuance of the war,

however, and the increased disbursements made necessary by the augmented

forces now in the field demand your best reflections as to the best modes

of providing the necessary revenue without injury to business and with the

least possible burdens upon labor.

The suspension of specie payments by the banks soon after the commencement

of your last session made large issues of United States notes unavoidable.

In no other way could the payment of troops and the satisfaction of other

just demands be so economically or so well provided for. The judicious

legislation of Congress, securing the receivability of these notes for

loans and internal duties and making them a legal tender for other debts,

has made them an universal currency, and has satisfied, partially at

least, and for the time, the long-felt want of an uniform circulating

medium, saving thereby to the people immense sums in discounts and

exchanges.

A return to specie payments, however, at the earliest period compatible

with due regard to all interests concerned should ever be kept in view.

Fluctuations in the value of currency are always injurious, and to reduce

these fluctuations to the lowest possible point will always be a

leading purpose in wise legislation. Convertibility, prompt and certain

convertibility, into coin is generally acknowledged to be the best and

surest safeguard against them; and it is extremely doubtful whether a

circulation of United States notes payable in coin and sufficiently large

for the wants of the people can be permanently, usefully, and safely

maintained.

Is there, then, any other mode in which the necessary provision for the

public wants can be made and the great advantages of a safe and uniform

currency secured?

I know of none which promises so certain results and is at the same time

so unobjectionable as the organization of banking associations, under

a general act of Congress, well guarded in its provisions. To such

associations the government might furnish circulating notes, on the

security of United States bonds deposited in the treasury. These notes,

prepared under the supervision of proper officers, being uniform in

appearance and security and convertible always into coin, would at once

protect labor against the evils of a vicious currency and facilitate

commerce by cheap and safe exchanges.

A moderate reservation from the interest on the bonds would compensate

the United States for the preparation and distribution of the notes and

a general supervision of the system, and would lighten the burden of

that part of the public debt employed as securities. The public credit,

moreover, would be greatly improved and the negotiation of new loans

greatly facilitated by the steady market demand for government bonds which

the adoption of the proposed system would create.

It is an additional recommendation of the measure, of considerable weight,

in my judgment, that it would reconcile as far as possible all existing

interests by the opportunity offered to existing institutions to

reorganize under the act, substituting only the secured uniform national

circulation for the local and various circulation, secured and unsecured,

now issued by them.

The receipts into the treasury from all sources, including loans and

balance from the preceding year, for the fiscal year ending on the 30th

June, 1862, were $583,885,247.06, of which sum $49,056,397.62 were derived

from customs; $1,795,331.73 from the direct tax; from public lands,

$152,203.77; from miscellaneous sources, $931,787.64; from loans in all

forms, $529,692,460.50. The remainder, $2,257,065.80, was the balance from

last year.

The disbursements during the same period were: For congressional,

executive, and judicial purposes, $5,939,009.29; for foreign intercourse,

$1,339,710.35; for miscellaneous expenses, including the mints, loans,

post-office deficiencies, collection of revenue, and other like charges,

$14,129,771.50; for expenses under the Interior Department, $3,102,985.52;

under the War Department, $394,368,407.36; under the Navy Department,

$42,674,569.69; for interest on public debt, $13,190,324.45; and for

payment of public debt, including reimbursement of temporary loan and

redemptions, $96,096,922.09; making an aggregate of $570,841,700.25,

and leaving a balance in the treasury on the 1st day of July, 1862, of

$13,043,546.81.

It should be observed that the sum of $96,096,922.09, expended for

reimbursements and redemption of public debt, being included also in the

loans made, may be properly deducted both from receipts and expenditures,

leaving the actual receipts for the year $487,788,324.97, and the

expenditures $474,744,778.16.

Other information on the subject of the finances will be found in the

report of the Secretary of the Treasury, to whose statements and views I

invite your most candid and considerate attention.

The reports of the Secretaries of War and of the Navy are herewith

transmitted. These reports, though lengthy, are scarcely more than brief

abstracts of the very numerous and extensive transactions and operations

conducted through those departments. Nor could I give a summary of them

here upon any principle which would admit of its being much shorter than

the reports themselves. I therefore content myself with laying the reports

before you and asking your attention to them.

It gives me pleasure to report a decided improvement in the financial

condition of the Post-Office Department as compared with several preceding

years. The receipts for the fiscal year 1861 amounted to $8,349,296.40,

which embraced the revenue from all the States of the Union for three

quarters of that year. Notwithstanding the cessation of revenue from the

so-called seceded States during the last fiscal year, the increase of

the correspondence of the loyal States has been sufficient to produce a

revenue during the same year of $8,299,820.90, being only $50,000 less

than was derived from all the States of the Union during the previous

year. The expenditures show a still more favorable result. The amount

expended in 1861 was $13,606,759.11. For the last year the amount has been

reduced to $11,125,364.13, showing a decrease of about $2,481,000 in the

expenditures as compared with the preceding year, and about $3,750,000 as

compared with the fiscal year 1860. The deficiency in the department

for the previous year was $4,551,966.98. For the last fiscal year it was

reduced to $2,112,814.57. These favorable results are in part owing to the

cessation of mail service in the insurrectionary States and in part to a

careful review of all expenditures in that department in the interest of

economy. The efficiency of the postal service, it is believed, has

also been much improved. The Postmaster-General has also opened a

correspondence through the Department of State with foreign governments

proposing a convention of postal representatives for the purpose of

simplifying the rates of foreign postage and to expedite the foreign

mails. This proposition, equally important to our adopted citizens and to

the commercial interests of this country, has been favorably entertained

and agreed to by all the governments from whom replies have been received.

I ask the attention of Congress to the suggestions of the

Postmaster-General in his report respecting the further legislation

required, in his opinion, for the benefit of the postal service.

The Secretary of the Interior reports as follows in regard to the public

lands:

"The public lands have ceased to be a source of revenue. From the 1st

July, 1861, to the 30th September, 1862, the entire cash receipts from the

sale of lands were $137,476.2--a sum much less than the expenses of our

land system during the same period. The homestead law, which will take

effect on the 1st of January next, offers such inducements to settlers

that sales for cash cannot be expected to an extent sufficient to meet the

expenses of the General Land Office and the cost of surveying and bringing

the land into market."

The discrepancy between the sum here stated as arising from the sales of

the public lands and the sum derived from the same source as reported from

the Treasury Department arises, as I understand, from the fact that the

periods of time, though apparently were not really coincident at the

beginning point, the Treasury report including a considerable sum now

which had previously been reported from the Interior, sufficiently large

to greatly overreach the sum derived from the three months now reported

upon by the Interior and not by the Treasury.

The Indian tribes upon our frontiers have during the past year manifested

a spirit of insubordination, and at several points have engaged in open

hostilities against the white settlements in their vicinity. The tribes

occupying the Indian country south of Kansas renounced their allegiance to

the United States and entered into treaties with the insurgents. Those

who remained loyal to the United States were driven from the country. The

chief of the Cherokees has visited this city for the purpose of restoring

the former relations of the tribe with the United States. He alleges that

they were constrained by superior force to enter into treaties with the

insurgents, and that the United States neglected to furnish the protection

which their treaty stipulations required.

In the month of August last the Sioux Indians in Minnesota attacked

the settlements in their vicinity with extreme ferocity, killing

indiscriminately men, women, and children. This attack was wholly

unexpected, and therefore no means of defense had been provided. It is

estimated that not less than 800 persons were killed by the Indians, and

a large amount of property was destroyed. How this outbreak was induced is

not definitely known, and suspicions, which may be unjust, need not to

be stated. Information was received by the Indian Bureau from different

sources about the time hostilities were commenced that a simultaneous

attack was to be made upon white settlements by all the tribes between

the Mississippi River and the Rocky Mountains. The State of Minnesota

has suffered great injury from this Indian war. A large portion of her

territory has been depopulated, and a severe loss has been sustained

by the destruction of property. The people of that State manifest much

anxiety for the removal of the tribes beyond the limits of the State as

a guaranty against future hostilities. The Commissioner of Indian Affairs

will furnish full details. I submit for your especial consideration

whether our Indian system shall not be remodeled. Many wise and good men

have impressed me with the belief that this can be profitably done.

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