The estimates presented to Congress from the different Executive

Departments at the last session amounted to $38,406,581 and the

appropriations made to the sum of $58,116,958. Of this excess of

appropriations over estimates, however, more than twenty millions was

applicable to extraordinary objects, having no reference to the usual

annual expenditures. Among these objects was embraced ten millions to meet

the third article of the treaty between the United States and Mexico; so

that, in fact, for objects of ordinary expenditure the appropriations were

limited to considerably less than $40,000,000. I therefore renew my

recommendation for a reduction of the duties on imports. The report of the

Secretary of the Treasury presents a series of tables showing the operation

of the revenue system for several successive years; and as the general

principle of reduction of duties with a view to revenue, and not

protection, may now be regarded as the settled policy of the country, I

trust that little difficulty will be encountered in settling the details of

a measure to that effect.

In connection with this subject I recommend a change in the laws, which

recent experience has shown to be essential to the protection of the

Government. There is no express provision of law requiring the records and

papers of a public character of the several officers of the Government to

be left in their offices for the use of their successors, nor any provision

declaring it felony on their part to make false entries in the books or

return false accounts. In the absence of such express provision by law, the

outgoing officers in many instances have claimed and exercised the right to

take into their own possession important books and papers, on the ground

that these were their private property, and have placed them beyond the

reach of the Government. Conduct of this character, brought in several

instances to the notice of the present Secretary of the Treasury, naturally

awakened his suspicion, and resulted in the disclosure that at four

ports--namely, Oswego, Toledo, Sandusky, and Milwaukee--the Treasury had,

by false entries, been defrauded within the four years next preceding

March, 1853, of the sum of $198,000. The great difficulty with which the

detection of these frauds has been attended, in consequence of the

abstraction of books and papers by the retiring officers, and the facility

with which similar frauds in the public service may be perpetrated render

the necessity of new legal enactments in the respects above referred to

quite obvious. For other material modifications of the revenue laws which

seem to me desirable, I refer you to the report of the Secretary of the

Treasury. That report and the tables which accompany it furnish ample

proofs of the solid foundation on which the financial security of the

country rests and of the salutary influence of the independent-treasury

system upon commerce and all monetary operations.

The experience of the last year furnishes additional reasons, I regret to

say, of a painful character, for the recommendation heretofore made to

provide for increasing the military force employed in the Territory

inhabited by the Indians. The settlers-on the frontier have suffered much

from the incursions of predatory bands, and large parties of emigrants to

our Pacific possessions have been massacred with impunity. The recurrence

of such scenes can only be prevented by teaching these wild tribes the

power of and their responsibility to the United States. From the garrisons

of our frontier posts it is only possible to detach troops in small bodies;

and though these have on all occasions displayed a gallantry and a stern

devotion to duty which on a larger field would have commanded universal

admiration, they have usually suffered severely in these conflicts with

superior numbers, and have sometimes been entirely sacrificed. All the

disposable force of the Army is already employed on this service, and is

known to be wholly inadequate to the protection which should be afforded.

The public mind of the country has been recently shocked by savage

atrocities committed upon defenseless emigrants and border settlements, and

hardly less by the unnecessary destruction of valuable lives where

inadequate detachments of troops have undertaken to furnish the needed aid.

Without increase of the military force these scenes will be repeated, it is

to be feared, on a larger scale and with more disastrous consequences.

Congress, I am sure, will perceive that the plainest duties and

responsibilities of Government are involved in this question, and I doubt

not that prompt action may be confidently anticipated when delay must be

attended by such fearful hazards.

The bill of the last session providing for an increase of the pay of the

rank and file of the Army has had beneficial results, not only in

facilitating enlistments, but in obvious improvement in the class of men

who enter the service. I regret that corresponding consideration was not

bestowed on the officers, who, in view of their character and services and

the expenses to which they are necessarily subject, receive at present what

is, in my judgment, inadequate compensation.

The valuable services constantly rendered by the Army and its inestimable

importance as the nucleus around which the volunteer forces of the nation

can promptly gather in the hour of danger, sufficiently attest the wisdom

of maintaining a military peace establishment; but the theory of our system

and the wise practice under it require that any proposed augmentation in

time of peace be only commensurate with our extended limits and frontier

relations. While scrupulously adhering to this principle, I find in

existing circumstances a necessity for increase of our military force, and

it is believed that four new regiments, two of infantry and two of mounted

men, will be sufficient to meet the present exigency. If it were necessary

carefully to weigh the cost in a case of such urgency, it would be shown

that the additional expense would be comparatively light.

With the increase of the numerical force of the Army should, I think, be

combined certain measures of reform in its organic arrangement and

administration. The present organization is the result of partial

legislation often directed to special objects and interests; and the laws

regulating rank and command, having been adopted many years ago from the

British code, are not always applicable to our service. It is not

surprising, therefore, that the system should be deficient in the symmetry

and simplicity essential to the harmonious working of its several parts,

and require a careful revision.

The present organization, by maintaining large staff corps or departments,

separates many officers from that close connection with troops and those

active duties in the field which are deemed requisite to qualify them for

the varied responsibilities of high command. Were the duties of the Army

staff mainly discharged by officers detached from their regiments, it is

believed that the special service would be equally well performed and the

discipline and instruction of the Army be improved. While due regard to the

security of the rights of officers and to the nice sense of honor which

should be cultivated among them would seem to exact compliance with the

established rule of promotion in ordinary cases, still it can hardly be

doubted that the range of promotion by selection, which is now practically

confined to the grade of general officers, might be somewhat extended with

benefit to the public service. Observance of the rule of seniority

sometimes leads, especially in time of peace, to the promotion of officers

who, after meritorious and even distinguished service, may have been

rendered by age or infirmity incapable of performing active duty, and whose

advancement, therefore, would tend to impair the efficiency of the Army.

Suitable provision for this class of officers, by the creation of a retired

list, would remedy the evil without wounding the just pride of men who by

past services have established a claim to high consideration. In again

commending this measure to the favorable consideration of Congress I would

suggest that the power of placing officers on the retired list be limited

to one year. The practical operation of the measure would thus be tested,

and if after the lapse of years there should be occasion to renew the

provision it can be reproduced with any improvements which experience may

indicate. The present organization of the artillery into regiments is

liable to obvious objections. The service of artillery is that of

batteries, and an organization of batteries into a corps of artillery would

be more consistent with the nature of their duties. A large part of the

troops now called artillery are, and have been, on duty as infantry, the

distinction between the two arms being merely nominal. This nominal

artillery in our service is disproportionate to the whole force and greater

than the wants of the country demand. I therefore commend the

discontinuance of a distinction which has no foundation in either the arms

used or the character of the service expected to be performed.

In connection with the proposition for the increase of the Army, I have

presented these suggestions with regard to certain measures of reform as

the complement of a system which would produce the happiest results from a

given expenditure, and which, I hope, may attract the early attention and

be deemed worthy of the approval of Congress.

The recommendation of the Secretary of the Navy having reference to more

ample provisions for the discipline and general improvement in the

character of seamen and for the reorganization and gradual increase of the

Navy I deem eminently worthy of your favorable consideration. The

principles which have controlled our policy in relation to the permanent

military force by sea and land are sound, consistent with the theory of our

system, and should by no means be disregarded. But, limiting the force to

the objects particularly set forth in the preceding part of this message,

we should not overlook the present magnitude and prospective extension of

our commercial marine, nor fail to give due weight to the fact that besides

the 2,000 miles of Atlantic seaboard we have now a Pacific coast stretching

from Mexico to the British possessions in the north, teeming with wealth

and enterprise and demanding the constant presence of ships of war. The

augmentation of the Navy has not kept pace with the duties properly and

profitably assigned to it in time of peace, and it is inadequate for the

large field of its operations, not merely in the present, but still more in

the progressively increasing exigencies of the commerce of the United

States. I cordially approve of the proposed apprentice system for our

national vessels recommended by the Secretary of the Navy. The occurrence

during the last few months of marine disasters of the most tragic nature,

involving great loss of human life, has produced intense emotions of

sympathy and sorrow throughout the country. It may well be doubted whether

all these calamitous events are wholly attributable to the necessary and

inevitable dangers of the sea. The merchants, mariners, and shipbuilders of

the United States are, it is true, unsurpassed in far-reaching enterprise,

skill, intelligence, and courage by any others in the world. But with the

increasing amount of our commercial tonnage in the aggregate and the larger

size and improved equipment of the ships now constructed a deficiency in

the supply of reliable seamen begins to be very seriously felt. The

inconvenience may perhaps be met in part by due regulation for the

introduction into our merchant ships of indented apprentices, which, while

it would afford useful and eligible occupation to numerous young men, would

have a tendency to raise the character of seamen as a class. And it is

deserving of serious reflection whether it may not be desirable to revise

the existing laws for the maintenance of discipline at sea, upon which the

security of life and property on the ocean must to so great an extent

depend. Although much attention has already been given by Congress to the

proper construction and arrangement of steam vessels and all passenger

ships, still it is believed that the resources of science and mechanical

skill in this direction have not been exhausted. No good reason exists for

the marked distinction which appears upon our statutes between the laws for

protecting life and property at sea and those for protecting them on land.

In most of the States severe penalties are provided to punish conductors of

trains, engineers, and others employed in the transportation of persons by

railway or by steamboats on rivers. Why should not the same principle be

applied to acts of insubordination, cowardice, or other misconduct on the

part of masters and mariners producing injury or death to passengers on the

high seas, beyond the jurisdiction of any of the States, and where such

delinquencies can be reached only by the power of Congress? The whole

subject is earnestly commended to your consideration.

The report of the Postmaster-General, to which you are referred for many

interesting details in relation to this important and rapidly extending

branch of the public service, shows that the expenditure of the year ending

June 30, 1854, including $133,483 of balance due to foreign offices,

amounted to $8,710,907. The gross receipts during the same period amounted

to $6,955,586, exhibiting an expenditure over income of $1,755,321 and a

diminution of deficiency as compared with the last year of $361,756. The

increase of the revenue of the Department for the year ending June 30,

1854, over the preceding year was $970,399. No proportionate increase,

however, can be anticipated for the current year, in consequence of the act

of Congress of June 23, 1854, providing for increased compensation to all

postmasters. From these statements it is apparent that the Post-Office

Department, instead of defraying its expenses according to the design at

the time of its creation, is now, and under existing laws must continue to

be, to no small extent a charge upon the general Treasury. The cost of mail

transportation during the year ending June 30, 1854, exceeds the cost of

the preceding year by $495,074. I again call your attention to the subject

of mail transportation by ocean steamers, and commend the suggestions of

the Postmaster General to your early attention.

During the last fiscal year 11,070,935 acres of the public lands have been

surveyed and 8,190,017 acres brought into market. The number of acres sold

is 7,035,735 and the amount received therefor $9,285,533. The aggregate

amount of lands sold, located under military scrip and land warrants,

selected as swamp lands by States, and by locating under grants for roads

is upward of 23,000,000 acres. The increase of lands sold over the previous

year is about 6,000,000 acres, and the sales during the first two quarters

of the current year present the extraordinary result of five and a half

millions sold, exceeding by nearly 4,000,000 acres the sales of the

corresponding quarters of the last year.

The commendable policy of the Government in relation to setting apart

public domain for those who have served their country in time of war is

illustrated by the fact that since 1790 no less than 30,000,000 acres have

been applied to this object.

The suggestions which I submitted in my annual message of last year in

reference to grants of land in aid of the construction of railways were

less full and explicit than the magnitude of the subject and subsequent

developments would seem to render proper and desirable. Of the soundness of

the principle then asserted with regard to the limitation of the power of

Congress I entertain no doubt, but in its application it is not enough that

the value of lands in a particular locality may be enhanced; that, in fact,

a larger amount of money may probably be received in a given time for

alternate sections than could have been realized for all the sections

without the impulse and influence of the proposed improvements. A prudent

proprietor looks beyond limited sections of his domain, beyond present

results to the ultimate effect which a particular line of policy is likely

to produce upon all his possessions and interests. The Government, which is

trustee in this matter for the people of the States, is bound to take the

same wise and comprehensive view. Prior to and during the last session of

Congress upward of 30,000,000 acres of land were withdrawn from public sale

with a view to applications for grants of this character pending before

Congress. A careful review of the whole subject led me to direct that all

such orders be abrogated and the lands restored to market, and instructions

were immediately given to that effect. The applications at the last session

contemplated the construction of more than 5,000 miles of road and grants

to the amount of nearly 20,000,000 acres of the public domain. Even

admitting the right on the part of Congress to be unquestionable, is it

quite clear that the proposed grants would be productive of good, and not

evil? The different projects are confined for the present to eleven States

of this Union and one Territory. The reasons assigned for the grants show

that it is proposed to put the works speedily in process of construction.

When we reflect that since the commencement of the construction of railways

in the United States, stimulated, as they have been, by the large dividends

realized from the earlier works over the great thoroughfares and between

the most important points of commerce and population, encouraged by State

legislation, and pressed forward by the amazing energy of private

enterprise, only 17,000 miles have been completed in all the States in a

quarter of a century; when we see the crippled condition of many works

commenced and prosecuted upon what were deemed to be sound principles and

safe calculations; when we contemplate the enormous absorption of capital

withdrawn from the ordinary channels of business, the extravagant rates of

interest at this moment paid to continue operations, the bankruptcies, not

merely in money but in character, and the inevitable effect upon finances

generally, can it be doubted that the tendency is to run to excess in this

matter? Is it wise to augment this excess by encouraging hopes of sudden

wealth expected to flow from magnificent schemes dependent upon the action

of Congress? Does the spirit which has produced such results need to be

stimulated or checked? Is it not the better rule to leave all these works

to private enterprise, regulated and, when expedient, aided by the

cooperation of States? If constructed by private capital the stimulant and

the check go together and furnish a salutary restraint against speculative

schemes and extravagance. But it is manifest that with the most effective

guards there is danger of going too fast and too far. We may well pause

before a proposition contemplating a simultaneous movement for the

construction of railroads which in extent will equal, exclusive of the

great Pacific road and all its branches, nearly one-third of the entire

length of such works now completed in the United States, and which can not

cost with equipments less than $150,000,000. The dangers likely to result

from combinations of interests of this character can hardly be

overestimated. But independently of these considerations, where is the

accurate knowledge, the comprehensive intelligence, which shall

discriminate between the relative claims of these twenty eight proposed

roads in eleven States and one Territory? Where will you begin and where

end? If to enable these companies to execute their proposed works it is

necessary that the aid of the General Government be primarily given, the

policy will present a problem so comprehensive in its bearings and so

important to our political and social well-being as to claim in

anticipation the severest analysis. Entertaining these views, I recur with

satisfaction to the experience and action of the last session of Congress

as furnishing assurance that the subject will not fail to elicit a careful

reexamination and rigid scrutiny. It was my intention to present on this

occasion some suggestions regarding internal improvements by the General

Government, which want of time at the close of the last session prevented

my submitting on the return to the House of Representatives with objections

of the bill entitled "An act making appropriations for the repair,

preservation, and completion of certain public works heretofore commenced

under the authority of law;" but the space in this communication already

occupied with other matter of immediate public exigency constrains me to

reserve that subject for a special message, which will be transmitted to

the two Houses of Congress at an early day. The judicial establishment of

the United States requires modification, and certain reforms in the manner

of conducting the legal business of the Government are also much needed;

but as I have addressed you upon both of these subjects at length before, I

have only to call your attention to the suggestions then made.

My former recommendations in relation to suitable provision for various

objects of deep interest to the inhabitants of the District of Columbia are

renewed. Many of these objects partake largely of a national character, and

are important independently of their relation to the prosperity of the only

considerable organized community in the Union entirely unrepresented in

Congress.

I have thus presented suggestions on such subjects as appear to me to be of

particular interest or importance, and therefore most worthy of

consideration during the short remaining period allotted to the labors of

the present Congress.

Our forefathers of the thirteen united colonies, in acquiring their

independence and in rounding this Republic of the United States of America,

have devolved upon us, their descendants, the greatest and the most noble

trust ever committed to the hands of man, imposing upon all, and especially

such as the public will may have invested for the time being with political

functions, the most sacred obligations. We have to maintain inviolate the

great doctrine of the inherent right of popular self-government; to

reconcile the largest liberty of the individual citizen with complete

security of the public order; to render cheerful obedience to the laws of

the land, to unite in enforcing their execution, and to frown indignantly

on all combinations to resist them; to harmonize a sincere and ardent

devotion to the institutions of religions faith with the most universal

religious toleration; to preserve the rights of all by causing each to

respect those of the other; to carry forward every social improvement to

the uttermost limit of human perfectibility, by the free action of mind

upon mind, not by the obtrusive intervention of misapplied force; to uphold

the integrity and guard the limitations of our organic law; to preserve

sacred from all touch of usurpation, as the very palladium of our political

salvation, the reserved rights and powers of the several States and of the

people; to cherish with loyal fealty and devoted affection this Union, as

the only sure foundation on which the hopes of civil liberty rest; to

administer government with vigilant integrity and rigid economy; to

cultivate peace and friendship with foreign nations, and to demand and

exact equal justice from all, but to do wrong to none; to eschew

intermeddling with the national policy and the domestic repose of other

governments, and to repel it from our own; never to shrink from war when

the rights and the honor of the country call us to arms, but to cultivate

in preference the arts of peace, seek enlargement of the rights of

neutrality, and elevate and liberalize the intercourse of nations; and by

such just and honorable means, and such only, whilst exalting the condition

of the Republic, to assure to it the legitimate influence and the benign

authority of a great example amongst all the powers of Christendom.

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