Year: 1865

v and the expenditures to Sl3, ,694, OPS leaving SUI
plus of receipts expenditures of 1851 43 Pro


gress has been made in resoring the postal service il
j; the southern States. The views presented by tn
postmaster general against the policy of granting sub
e sides to ocean mail steamship lines upon established
routes and in favor of continuing the present system
J. which limits the compensation to postage earnings
are recommended to the careful consideration of
gress 1t appears from the report of the secretary
n the navy, thatiwhile at the commencement of the
present year there in commission $50 vessels
all classes and descriptions armed with 5000 guns anG
: manned by $1,000 men, the number of vessels al
present IN commission is 1T, with $50 guns and
Y II l28 men,


By this prompt reduction of the naval forcessthe


expenses OF the government have been largely dimin-


lshed, and number of vessels purchased for naval
purposes from the merchant marine have been re-


turned to the peaceful pursuits of commerce. Since


the suppression of active hostties foreign squad


rons have been reestablshed and consist of vessels


much more efficient than those employed upon similar


service previous to the rebellion The suggestion for


the enlargement of the navy Yards and especially for


the establishment of in fresh water for iron clad


vessels, is deserving of consideration as is also the


Recommendation Tor different IocaIlon and


pie grounds Tor the naval academy In the report Of


the secretary OF war; general summary is given of


the military campaigns of 1864 and 1865 ending in


the suppression of armed resistance to the national


authority in the insurgent States The operations of


the general administration bureau of the war depart


ment during the past year are DELAYED and an esti-





for military purposes i'll the fiscal year commencing


the 30th day of June, 1866. The national military


force the 1st of May, 1865 numbered l,00O5l6


men. 1t is proposed to reduce the military estab-


lishment to peace footing, comprehendng fifty


thousand troops of all arms, organized SO as to admit


of an enlargement by filling up the ranks to eighty


two thousand six hundred, if circumstances of the
country should require augmentation of the army


The volunteer force has already been reduced by the
discharge from service of over 100000 troops and
! is Iv in f,a lrof
| further reduction The war estimates are reduced
| from S5l6, ,240,13l to $33 6l4 461 which amount in


the opinion of the department, is adequate for
peace establishment. The measures of the service
exhibit diligent economy worthy of commentator.
Reference IS also made in the report to the necessity
of providing for a uniform militia system and to the
propriety OF making suitable provision for wounded
and disabled officers and soldiers The revenue sys-
tenn OF the country is subec of vital Importance to
its honor and interest," and should command the earn
est consideration of congress The secretary of the
treasury will lay before you free and detailed report
of the receipts and disbursements of the last fiscal
year. of the first quarter of the present fiscal year. of
the probable receipts and expenditures for the other
three quarters and the estimates for the years follow
ing the 30h June, 1866. must content myself with


reference to the report in which you will find all the
information required for your deberation and deei-
sion; but the paramount Importance of the subject
presses itself on my mind that cannot but lay
before you my views of the measures which are re-
qureG for the good character and might also say
for the existence of this people The life of repub


Tic lies certainly IN the energy, virtue and intelligence
OF its citizens, but is equally true shat good reVe
nue. system is the life of an organized government.


meet you at time when the nation has voluntarily
burdened itself with debt unprecedented in our an
mails. Large as is its aftiotnt il fades array into
nothing when compared with the countless blessings
that Will be conferred upon our country and upon man
by the preservation Of the nations life Now on the
taFn of peace is of tie utmost importance to inan
gurate fresh policy which shall at once be put in
mouon, and which shall commend itself to those who
come after US for its continuance. We must aim at
nothing less than the complete eacemeat of the fnan
cia evils that necessarily followed state of civil war
we must endeavor to apply the earliest remedy to the
deranged state OF the currency and not shrink from
aeVlsoS PoHcy which, without being oppressive to
the people, shall Immediately begin to effect reduc-


ton of the debt and if persisted in discharge it fully
within definitely fixed number of wears It is cur
hrst duty to prepare in earnest for our recovery from
the ever increasing evils of rredeemable curren-
cy, without sudden reVulsion, and without untmey
persstency to that end must each in our resnectiy
positions prepare the way Should it be the dutv of
the executive to insist rugay in the expenditures
and support economy 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-
dcnce, and the law must be rigidy enforced. when
its limits are exceeded may each one of us conn
sci our active and enterprsing countrymen to be con-
stany on their guard, to liqudae debts contracted
IN paper currency and by conducting business rs
nearly as possible on system of cash payments or
short Credits to hold themselves prepared to return
to the standard OF gold and silver; to aid our fellow
citizens III the prudent management of the monetary
affairs, the duty deyolveS US to diminish by law the
amount OF paper money now in circulation Four
years ago the bank note circulation of the country
amounted to not much more than two hundred millions
now the clrcuatIon bank and national exceeds seven
hundred millions. The simple statement of the fact
recommends more strongly than any words of mine
could do the necessity of reducing this exDansion
The gradual reduction of the currency is the only
measure that the business of the coontrv 5
from disastrous caamities; and this can be almost
lmpercepiby accomplished by gradually funding the t
national circulation in securities that may be made re-
deema0le at the pleasure of the government Our !
debt is douby secured: First in the actual wealth
and still greater undeveoped resources of the coun
try and next, III the character of institutions
The most Intelligent observers among political ecoGo
mlsts have not failed to remark that the public of
country Is safe IN proportion its people free
history con Arms and astaIbos 4I Isl =, Glil ii r9 9l
firmly believe destined to give it still more signal il
illustration The secret OF this superiority springs
not merely from the fact that the republics national
obligations distributed widely through count
less numbers i'll all classes Of society it has its secret
in the character of laws All men contribute to q
the public welfare; bear their fair share of the public a.
burden. During the war, under the impulses of pa Il
rotlsm, the most of the great body of the people, 81
without regard to their own comparative want of
wealth, belonged to armies and filled our fleets of
war; and held themselves ready offer their lives for Ia
he public good. Now in their turn, the property p
md income of the country should bear their just pro- a.
portion of the burden of taxation, while in import ri
ystem through means of which increased vitality is st
impaired all the Industrial interests Of Ii
be nation the duties should be adjusted as to- fall HI
most heavily on articles Of luxury leaving the nece
aries of life free from taxation as the absolute
wants of the government, economically administered
will justify. No favored class should demand freedom 81
= 80 - fII f fiI ''l - ~ '"ou'u NC 50 Gstflpated ia
. OU uPOI lue puOT, DuL rather the h