, 1862-12-20
TIfr TERRITORIES

important exceptions, have remained undisturbed
by the civil war; and they are exhibiting such ev'
idence of prosperity as ustifes 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 these Territories
ought to be developed as rapidly as possible ev-
cry step in that direction would have tendency
to improve the resources of Government, and TO
diminish the burdens Of the people. 1t Is worthy
of your serious consideration whether some ex-
traordnary measures to promote that end, can
not be adopted The measure which suggests
itself as most likely to be effective is a scientific
exploration of the mineral regions of these Ter
rtories, with view to the publication of its re-
suits at home and in foreign countries.
THE NATIONAL FINANCES.
The condition of the finances will claim your
most dilgent consideration The vast expendi-
lures incident TO the military and naval opera
tions, required for the suppression of the rebel
lion, have been hitherto met with promptltude
and certainty, unusual in similar circumstances,
and the Republics credit has been fully main
tanned. The continuance of the war, however,
and the increased disbursements made necessary
by the augmented forces now in the field demand
your best reflection as to the best means of pro-
viding the necessary revenue, without injury to
JOooACiS
labor. The suspension of specie payment 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 the troops and other Just demands be so eco
nomcally or so well provided for. The judicous
legislation of Congress, securing the receivablity
of these notes for loans and internal duties, and
making them legal tender for other debts, has
made them universal currency. and has satisfied
partially, at least, and for the time, the long felt
want Of an uniform circulating medium, leaving
thereby to the people immense sums in discount
AID exchange. A return to specie payments,
however, at the earliest period compatible with a
due regard to all interests, should ever be kept
in view. Fluctuations in the value Of currency
are always Injurious, and to reduce these huctu-
ations to the lowest possible point will always be
leading purpose in wise legislation. Prompt
and certain convertibility into coin is generally
acknowledged to be the best and surest protection
against them, and it is extremely doubtful wheth-
the circulation of United States notes, payable
in coin, and sufficiently large for the wants Of
the people, can be permanently, useiully, and
safely maintained. Is there any other mode in
which the necessary provision for the public wants
can be made, and the advantages of a safe and
uniform currency secured? | know Of none
which promises so certain results, and at the
same time so unobjectionabe as the organization
of bankage Institutions, under general Act of
Congress, well guarded in its provisions To
such associations, the Government might furnish
circulating notes on security of United States
Bonds deposited in the Treasury. These notes.
prepared under the supervision Of proper officers
and being uniform in appearance and security
and convertible always with certainty, would at
once protect labor against the evils of vicious
currency, and facilitate commerce by cheap and
safe exchanges. A moderate reservation from
the interest of bonds would compensate the Uni
ted States for the preparation and distribution of
the notes, and general extension Of the system
would tighten the burden of that part of the
public debt employed as security. The public
credit, moreover, would be greatly improved, and
the negotiation of new loans greatly facilitated
by the steady demand for Government Bonds,
which the adoption Of the proposed system would
create. 1t is an additional recommendation of
The measure, of considerable weight, in my judg-
ment, that it would reconcile, as far as possible,
all existing interests by the opportunity offered to
existing Institutions to substitute a uniform Ma
tional circulation for the local and various circu-
lation, secured and unsecured, now issued by
them.
The receipts into the Treasury, from all sour
ces including loans and balances from the pre-
ceding year. for the fiscal year ending Both of
june 1862, were S5S3, ,S85, ,247 &C, Of which
sum S49,O9S392 62 were derived from customs;
$1,795,33l 70 from the direct tax from publ,
lands, $l52,20S II from miscellaneous sources,
1881 ,7S9 90; from loans il all forms, $685.,
692,360 80; the remainder, $257,0 so was
the balance from last year. The disbursements
during the same period were for Congressional,
Executive and Judicial purposes, $50, ,OO9
% loans, post office and Deficiencies, collection
If ravanuoe and other duas apd cbarpao
129,701, for expense under the Interior Depart
ment, So, 1925 $50 50; under War Department,
1884, ,968,407 So; under the Navy Department,
$40, ,S74 ,504 69 for interest on public debt,
$13, l90,324 45; and for the payment of the pub
lie debt, including reimbursement of temporary
loan and redemption, S96096,92S 90; making
an aggregate of $570700 %, and leaving bal
ance in the Treasury on the 1st of july 1862, of
$l3,O43,44 81. 1t should be observed that the
sum of S06O96,923 90, expended for reimburse
ments and redemption of public debt, having in
cluded also in the loans made, may be properly
deducted both from the receipts and expenditures,
leaving the actual receipts for the year, $751;
7SS324 81, and the expenditures, 1914, ,744 ,79S
l6. Other information on the subject of the f.
nances will be given in the report of the Secre-
tary of the Treasury, to whose statement and
views | invite your most considerate attention.
WAR AND NAVY DEPARTMENTS.
The reports of Secretary of Navy and Secre-
tary of War are herewith transmitted These
reports, though lengthy, are scarcely more than
brief extracts of the very numerous and extensive
transactions and operations executed through
their departments, nor could l give a summary
of them here, upon any principle which would
admit of its being made shorter than the reports
themselves l therefore content myself with lay
ing the reports before you, and asking your at
tention to them.
POST OFFICE DEPARTMENT
1t gives me pleasure to report decided i'm
provement in the financial condition of the Post
Office Department, as compared with the several
preceding years. The receipts for the fiscal year
1861 amounted to SS,34O, ,296 40, which embraced
the revenue from all the States of the Union, for
three quarters of that year. Notwithstanding
the cessation Of revenues from the so-oalled Con-
federate States during the fiscal year. the increase
of correspondence of the loyal States has been
sufficient to produce a revenue during the same
year of SS,22O,S2O 80, being only $4,000 less
than was derived from all the States of the Union
the previous year. The expenditures show a still
more favorable result. The amount expended in
1861 was Sl3, 606 7S9 II for the last year the
amount has been reduced to SLIPS, 364 H.
showing difference Of about S2427OO0 ia the
expenditures as compared with the preceding
year, and about SS,S50,0O0 as compared with the
fiscal year 1860. The deficiency in the depart
ment for the previous year was S4551, 1896 90;
for the last fiscal year it was reduced to $21l2,-
Sl4 81. The results are, in fact owing to the
cessation of mail conveyance in the insurrectona-
ry States, and in part to a casual review of all
expenditure in that department in the interest and
economy. The efficiency of the postal service, it
is believed has also been much improved. The
Postmaster General also opened correspondence
through the Department of State, with foreign