Year: 1861

1uo Few weeks WHICH nave elapSeU SlLCe your
have brought us so near the close
of the year, that we are now able to sum up its
general results The retrospect is such as should
ill the hearts of cur people with gratitude to
Providence for His kind interposition in their
behalf. Abundant yields have rewarded the Ia
Dor of the agrculturist, whilst the manufacturing
industry of the Confederate States was never 50
prosperous as now. The necessities of the times
have called into existence new branches of man
ufactures, and given fresh impulse to the &C
tivity of those heretofore in operation. The
means of the Confederate States tor lnanufactu-
ing the Iecessaries and comforts OF life within
themselves increase as the contest continues, and
we are gradually becomi G independent OF tee
rest of the world for the supply OF such military
stores and munitions as are indispensable for war.


The operations of the army, soon to be par
TALLY interrupted by the approaching winter,
haze afforded protection to the country, and
shed lustre upon its arms throu the trying
vicssitudes of more than one ardaous campaign,
which entite our brave volunteers to our praise
and our gratitude.


From its commencement up to the present
period, tie war has been enlargiDg its proper
tions and expanding its boundaries, SO as to in
cude new fields The conflict now extends from
the shores Of the Chesapeake to the con6nes OF





the remotest points for military aid have been
met with promptness enough not only to avert
disaster in the face of superior numbers, but,
also, to roll back the tide of invasion from the
border.


When the war commenced, the enemy were
possessed of certain strategic points aud strong
places within the Confederate States. They
greatly exceeded US in numbers, in available re-
sources, and in the supplies necessary for war
Military establishments had been long organized,
and were complete the navy, and Tor the most
part, the army, once common to both, were il
their possession. To meet all this, we had to
create not only al army in the face of war ITSELF
but also the military establishments necessary to
equip and place it in the field. 1t ought indeed
to be subject of graduation that the spirit OF
the volunteers and the patriotism of the people
nave enabled US, under Providence, to grapple
successfully with these difficulties. A success
ion of glorious victories at Bethel, Bull Run
Springfield, Lexington, Leesburg and Belmont
has checked the wicked invasion which greed oi
gain and the unliallowed lust OF power brought
upon our soil, and has proved that numbers cease
toaSail when directed against people fighting
for tie sacred right of self government and the
privileges of freemen. After more than seven
months If War, the enemy have not only failed
to extend their occupancy OF our soil, but new
States aud Territories have been added to our
Uonfederacy, Willie instead of their threatened
march of unchecked conquest, they have been
driven at more than one point to assume the de-
fensve; and, upon q fair comparison betwe II
the be.ligerents as to men, military means, anG
financial condition, the Confederate States are
relatively much stronger now thar when the
struggle commenced.


Since your adjournment the PEOPLE of Missouri
box, a1 ri, 70 onfa
unparalleled difficulties, with spirit and success
alike worthy OF themselves and of the great
cause in which they are struggling Since that
time Kentucky, too, has become the theatre OF
active hostililes. The Federal forces have not
only refused to acknowledge her right to be neu-
tral, and have insisted upon making her party
TO the war, but have invaded her for the purpose
of attacking the Confederate States. Outrages
of the most despotic character have been perPe-
trated upon her people, some of her most emil
nent citizens have been seized and borne away
to laDguish in foreign prisons without knowing
who were their accusers, or the specific charges
made against them, while others have been for
ced to abandon their homes, families, and prop
erty, and seek refuge in distant lands.


Finding that the Confederate States were
about to be invaded through Kentucky, and that
her people, after being deceived into mistaken





subjugated by the Federal forces our armies were
marched into that State to relel the enemy and
prevent their occupation of certain strategic
points which would have given them great ad-
vantages in the coutest-a step which was justi-
fed, not only by the necessities OF self-detence
On the part of the Confederate States, bat, also,
by desire to aid the people OF Kentucky. Ii
was never intended by the Confederate Govern
ment to conquer coerce the people OF that
State; but, on the contrary, it was declared by
our Generals that they would withdraw their
troops if the Federal Government would do like
wise. Proclamation was also made Of the desire
to respect the neutrality of Kentucky, and the
intention to abide by the wishes of her people as
soon as they were free to express their opinions.


These declarations were approved by me, and
should regard it as of the best effects OF the
march of our troops into Kentucky if it should
end in giving to her people liberty of choice and
a fire. opportunity to decide their own destiny
according to their own will.


The army has been chiefly instrumental in
the great contest In which We are
engaged but the Navy has also been effective
in full proportion to its means. The naval Oti-
GERS deprived to great extent OF an opportunity
to make their professional skill available at sea
have served with commendable zeal and gallant
ry on shore and upon inland waters, further de-
tall of which Will be found IN the reports OF the
Secretaries of the Navy and War.


In the transportation of the mails many diff
cultes have arisen which will be foGDd fully de-
veloped in the report OF the Postmaster General
The absorption of the ordinary means of trans
pcrtation for the movement OF troops and militia
ry supplies; the iDsufficiency of the rolling stock
of rail toacs for the accumulation of business re-
sulting both from military op rations, and the
obstruction of water communication by the pres
ence of the enemy's fleet the failure and even
refusal OF contractors to comply with the terms
OF their agreement the difficulties inherent In
inauguI atiDg 50 vast and complicated system
as that which requires postal facilities for ev-
cry town aud village in territory SO extended
as ours, have all combined to impede the best
directed efforts of the Postmaster General, whose
zeal, industry and ability have been taxed to
the utmost extent. Some of these difficulties
can only be overcome by time and an improved
concition OF the country upon the restoration OF
peace, but Others may be rem.ded by legislation,
and your attention Is invited to the recommen-
dations contained in the report OF the Head OF
that Department.


The condition of the Treasury will doubtless,
be subject OF anxious inquiry on your part
am happy to say that the financial system already
adopted Eas worked well SO far, and promises
good results for the fIture. To the extent that
Treasury notes may be issued, the Government
Is enabled to borrow money without interest. and
thus facilitate the conduct oil the war. This ex-
tent is measured by the portion of the field OF
circulation which those notes can be made to
occupy The proportion of the field thus occu.
pied Gepends again urOn the amount OF the debts
tor which they are receivable: and when dnes