Year: 1865

FdyiH6utS OI SHUT cTealISs 10 h0l0 t0elIl-


selves prepared TO return to the standard of
gold and silver. To aid our fellow-citizens
in the prudent management of their none
tary affairs, the duty deyolves on us to di-
minish by law the amount of paper money
now In circulation. Five years ago the bank
note circulation of the country amounted to
not much more than two hundred millions;
now the circulation, bank and national, ex-
ceeds seven hundred millions The simple
statement OF the fact recommends more
strongly than any words of mine could do,
the necessity of our restraining this expan-
sion. The gradual reduction Of the curren-
ey IS the only measure that can save the
business OF the country from disastrous ca


lalpitless and this can be almost impereep-


tiby accomplished by gradually funding the


national circulation m securities that may


be made redeeniable at the pleasure Of the


Government


Our debt is doubly secure--frst in the ac-


tual wealth and still greater undeveloped
resources of the country; and next in the
character of our Institutions. The most in


telllgent observers among political econo-


mlsts have not failed TO remark, that the


public debt of u country is safe In proper


ton as the people are free; that the debt of
a republic is tht safest of all. Our history
confirms and establishes the theory, and is,


firmly believe, destined to give it a still more


signal Illustration. The secret of this supe-
riorlty springs not merely from the fact that
IN republic the national obligations are dis
tributed more widely through countless
numbers in all classes of society; it has It's
roots In The character of our laws. Here all
men contribute to the public welfare. and
bear their fair share of the public burdens.
During the war, under impulses of patriot
ism, the men of the great body of the peo-
pie, without regard to their own compare
tive want of wealth, thronged to our armies
and filed our fleets of war, and held them
selves ready to offer up their lives for the
public good. Now, in their turn, the prop
erty and income Of the country should bear
their just proportion Of the burden of tax
alton, while in our impost system through
means Of which increased vitality is ineiden-
tally impaired to all the industrial interests
of the nation, the duties should be so adjust
ed as to fall most heavily upon articles of
luxury, leaving the necessaries of life as
free from taxation as the absolute wants of
the Governments, economically administered
will justify. No favored class should de-
mand freedom from assessment, and the taxes
should be so distributed as not to fall undu-
" on the poor, but rather on the accumu-
lated wealth Of the country. We should
look at the national debt Just as it is-not
as national blessing, but as heavy bur
den on the industry of the country, to be
discharged without unnecessary delay.


1t is estimated by the Secretary of the
Treasury that the expenditures OF the fiscal
year ending the 30th of June, 1866, win ex-
ceed the. receipts $Il2l94, 947. 1t is graft
tying, however, to state that it is also esti-
aT1rlT ThnA +I.z-- IL.


the 30th Of June, 1867, will exceed the ex-


penditures in the sum of $11l, $50, ,S18.


This amount, or so much as may be deemed


sufficient for the purpose, may be apDIied To
the reduction of the public debt, which. on
the 3lst day of October, 1865, 81, 40. S54.-
$50. Every reduction viii diminish the to-
tai amount of interest to be paid, and so en-
large the means of still further reductions.
until the whole shall be hquidated; and this.
as will be seen from the estimates of the
Secretary of the Treasury, may be accom-
phshed by annual payments even within a
period not exceeding thirty years / have
faith that we shall do all this within reas
enable time; that, as we have amazed the
world by the suppression of civil war which
was thought to be beyond the control of any
Government, so we shall equally show the
superiority of our institutions by the prompt
and faithful discharge of our national obhea-
tions.


The Department of Agriculture, under its
present direction, is accomplishing, much in
developing and utilizing the vast agricultur-
al capabilities OF the country, and for infor-
nation respecting the details of its manage
ment, reference is made to the annual report
of the Commissioner.


| have dwelt thus fully on our domestic
affairs because of their transcendant import
ance. Under any circumstances, our great
extent OF territory and variety of climate,
producing almost everything that is pecessa-
ry for the wants, and even the comforts of
man, make us singularly independent of the
varying policy of foreign Powers, and pro-
teet us against every temptation to nenfap-
Cling alliances, while at the present mo-
ment the establishment of harmony and
the strength that comes from harmony. viii
be our best. security against nations who
feel power, and forget right For myself,
1t has been and it will be my constant aim TO
promote peace and amity with all foreign ma
tons and Powers and have every reason
to believe that they all, without exceptions.
are animated BY the same disposition. Our
relations with the Emperor of China, SO re-
cent in their origin, are most friendly. Our
commerce with his dominions is receiving
new developments; and it is very pleasing to
find that the Government of that great En-
pire manifests satisfaction with our policy.
and reposes just confidence in the fairness
which marks our intercourse The unbro-
ken harmony between the United States
and the Emperor of Russia, is receiving a
new support from an enterprise designed to
carry telegraphic lines across the continent
of Asia, through his dominions. and so to
connect us with all Europe by new chan
mel of intercourse Our commerce with
South America is about to receive encourage
ment by direct line of mail steamships to
the rising Empire Of Brazil The distin-
guished party of men of science who have
recently left our country to make scientific
exploration Of the natural history and riy-
ers and mountain ranges of that region. have
received from the Emperor that generous
welcome which was to have been expected
from his constant friendship for the United
States, and his well known zeal in promo
ting the advancement of knowledge. A
hope is entertained that our commerce with
the rich and populous countries that border
the Mediterranean sea may be largely in
creased. Nothing will be wanting, on the
part of this Government, to extend the pro-
lection of our flag over the enterprise of our
We receive from the Pow
srs IN that region assurances of good will;
and it is worthy of note that special envoy
has brought us message of coincidence on
the death of our late Chief Magistrate from
the Bey of Tunis, whose rule includes the
old doninions of Carthage on the African
coast.