Year: 1865




recovery from the ever-increasng evils of an ire
deemabe currency, without a sudden revuIsion.
and yet without untimely procrastna,on For that
end, we must each in our respective positions pre-
pare the way hold II the duty Of the Executive
TO insist upon frugality in the expenditures aud a
sparing economy is itself great national resource
OF the banks to which authority has been given to
issue notes secured BY bonds of the United States
/ we may require the greatest moderation and pru-
dence- and the law must be rgidly enforced when
its limits are exceeded We may each one of us
counsel our active and enterprising countrymen to
beconstantly on their guard to liquidate debts con-
tracted in paper currency, aud by conducting
business as nearly as possible on a system OF cash
payments on short credits, to hold themselves pre-
pared to return to the standard of gold and silver
To aid our fellow-citzens in the prudent manage
ment OF their monetary affairs the duty devolyes
on us to diminish by law the amoant of paper
money now in circulation. Five years ago The
ank-note circulation of the country amounted to
not much more than two hundred millions; now
the circulation, bank aud national, exceel 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
expansion. The gradual reduction of the currency
Is the only measure that can save the business of
the couptry from disastrous caamities; and this
can be almost imperceptibly acc ompIished BY grad
ually funding the national circulation in securities
that may be made redeemable at the pleasure of
the Government.


Our debt is doubly secure-frst in the actual
wealth and still greater undeveloped resources of
the country; and next in the character of our in
stitutions. The most intelligent observers among
political economists have not failed to remark, that
the public debt of country is safe in proportion az
its people are free, that the debt Of republic is
the safest of ALL Our history confirms and estab-
fishes The theory, ana is, firmly believe, destined
to give it still more signal illustration. The secret
of this superiority 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 il has its root in the charac-
ter of our laws. Here all men contribute TO the
public welfare, and bear their fair share of the pub.
lie burdens. During the war, under the impulse
of patriotism, the of the great body Of people
without regard to their own comparative want of
wealth, thronged to our armies and filled our fleets
of war, and held themselves ready to offer their
lives for the public good. Now in their turn, the
| property and income of the country should bear
their just proportion of the burden of taxation,
while in our impost system, through means of
which increased vitality is incidentally impaired to
all the industrial interests of the nation, the du-
ties should be adjusted as to fall most heavily on
articles of luxury leaving the necessaries of ife as
free from taxation rs the absolute wants CT the
Government economically administered will justi-
| fly. No favored class should demand freedom from
asse sment and the taxes should he so distributed
as not to fall unduly on the poor, but rather the
accumulated wealth of the country. We should
look at the national debt just as it s-not as q ma
tional blessing, but as heavy burden on the in
dustry of the country, to be discharged without
unnecessary delay.


1t is estimated by the Secretary of the Treasury
that the expe ditures for the fiscal yeai ending the
3oth Of June, ss5, will exceed the receipts $ll2-
ls4,947. 1t Ia gratifying, however, to state that
1t is also estimated tina. the for the year
ending the 30th of June, 1867, will exceed the
expenditures in the sum of Sill ll,6s2Sls. This
amount or so much as may be deemed sufficient
for the purpose may be applied to the reduction OF
the public debt which, on the 3lst day of October
1865, was 50, TAO, $50. Every reduction viii
diminish the total amount of interest to be paid,
and so enlarge the means Of still further reductions
until the whole shall be liquidated and this as
will be seen from the estimates Of the Secretary Of
the Treasuary, may be accomplished by annual
payments even within period not exceeding thirty
years. have faith that we shall do all this within
reasonable time; that as we have amazed the
world by the suppression of civil war which was
thot to belbeyond the control of any Government
so we shall equally show the superiority of our in
stitutons by the prompt and faithful discharge Of
our national obligations form


The Department of Agriculture under its pres
ent direction, is accomplishing much in the develo-
ping and utilizing the vast agricultural capabilities





details Of its management reference is made to the
annual report of the Commissioner. g -a.-
|, l have dwelt thus fully on our domestic affairs
because of their transcendental Importance Under
any circumstance great extent of territory and
variety of climate, producing almost everything
that is necessary for the wants and oven the COM


forts of man, make us sRgularly independent of the
varying policy of foreign Powers and protects us
against every temptation to "entaging alliances
Vva al the ishmpnt M
harmony, and the strength that comes from hGr-
mony, will be our best security against "nations
: who feel powerful and forget the right" For my
SELF it has been and it will be my constant aim to
promote peace and amity with oil foreign nations
and Powers; and have every reason to believe
! that they all without exception are animated by
the same disposition, Our relations with the En-
peror of China recent in their origin, are most
friendly. Our commerce wits his dominions is re-
ceiVing new Developments and it is very pleasing
to find that the Government of that great Empire
manifests satisfaction with our policy and reposcs
just confidence in the fairness which marks our in
tercourse, The unbroken harmony between.the Uni


ted States and the Emperor Of Russia Is receiving
a new support from an enterprised designed to cal
ry telegraphic lines across the continent of Asia
: through his dominions and 80 connect US with al
Europe by a new channel of int course. Ou
commerce with South America is about 10 receive
encouragement by direct line of mail steamship
10 the rising Empire Of Brazil. The distinguishes
party Of men of science who have recently left ou
: country to make a scientific exploration Of the ma
y tural history and rivers and mountain ranges o
c that region, have received from the Emperor tha
u generous welcome which was to have been expec


ted from his constant friendship for the Unite'
4 States, aud his well-kn0wn real in promoting th
a advancement of knowledge. hope is entertaine
. that our commerce with the rich and popnloi
), countries that border the Mediterranean sea may
. Nnfhint, ho
part of this Government to extend the protection
II our flag over the enterprise Of our fellowcitzen
/ We receive from the Powers in that region assn
II RANGES of good will and it is worthy of note tina
h special envoy has brought us messages OF condo
n lenee on the death Of our late Chief Magstrat
!, from the Bey Of Tuuis whose rule includes th
/. old domnions of Carthage on the African coast.
le Our domestic contest, now happily ended, hs
r. left some traces in relations with one at lea
Is of the great maratmc Powers. The formal accoi
le dance of belgerent rights TO the insurgent State
At was unprecedented and has not been justified b!