Year: 1863




1t our duty to send commissioners abroad
for the purpose OF entering into negotia.
tions proper to fix relative rights and
obligations of the parties to those trea
ties. AS this tender on our part has
been declined, as foreign nations have
refused us the benefit of the treaties to
which we were the parties, they certain.
ly have ceased to be binding on us, and
in my opinion, our relations with Euro.
pean nations are, therefore, now control
led exclusively by the general rules of the
law of nations. 1t is proper to add that
these remarks are intended to apply sole.
ly to treaty obligations toward foreign
Governments, and have no reference to
rights Of individuals.


FINANCES.


The state of the public finances is such
as to demand your earnest attention.
need hardly say that prompt and eff
cacious remedy for the present condition
OF the currency is necessary to tho sue
cessful performance of the functions of
Government. Fortunately, the resour-
ces OF our country are 50 ample, and the
spirit Of the people SO devoted to its
cause, that they are ready to make any
necessary contribution. Relief is thus
entirely within our reach if we have the
wisdom to legislate in such a manner as
to render available the means at our dis
posal.


AT the commencement of the war we
were far from anticipating the magnitude
and duration Of the struggle in which we
were engaged. The most sagacious fore
sight could not have predicted that the
passions Of the Northern people would
lead them blindly to the sacrifice of life
and treasure and liberty, in so vain q
hope as that of subjugating thirteen inde-
pendent States, inhabited by many mil
lions of people, whose birthrght of
freedom is dearer to them than even life
itself.


Here Mr.. Davis goes into lengthy
statement Of the laws on taxation, adop-
ted by the rebel Congress, and an argu-
ment ss to what is constitutional and
what not.


shall, therefore, until we are able to
pursue the precise mode required by the
Constitution, deem it my duty to ap
prove any law levy ing the taxation which
you are bound to impose for the defense
of the countrXe,in any other practicable
mode which shall distribute the burden
uniformly and impartially on the whole
property of the people.


In your former legislation you have
| vannbf 70, avniI thn So Al
in circulation, by offering inducements
to voluntary funding. The measures
adopted for that purpose have been but
partially successful, and the evil has
reached such magnitude as to permit
no other remedy than the compulsory re-
duction of the currency to the amount
required by the business Of the country
This reduction should be accompanied
by pledge that, under no stress of cir
cumstances, will that amount be exceed.
cd. No possible mode of using the
credit of the Government can be so dis
astrous as one which disturbs the basis
of all exchanges, renders impossible all
calculations of future values, augments,
in constantly increasing proportions, the
price of all commodities, and so depres-
ses all fixed wages, salaries and incomes
as to render them inadequate to bare sub
sistence. If to these be added the still
more fatal influence on the morals and
character of the people, to which l have
already reverted, | am persuaded you
will concur in the conclusion that an in
| flexible adherence to the limitation of the
currency at fixed sum is an indispensa-
BILE element of any system of finance
now to be adopted.


The holders of the currency now out
standing can only be protected in the re-
covery of their just claims by substitu-
ting for their notes some other security.
If the currency is not greatly and prompt
Y reduced, the present scale OF inflated
bribes will not only continue to exist but
in the conduct of the war, those prices
will reach rates still more extravagant,
and the whole system will fall under its
own weight, thus rendering the redemp.
tion of the debt impossible, and destroy
ing its whole value in the hands of the
holder.


THE ARMY.


ltcpOIt VI tHc CcCIttdIy Vi w III
you are referred for details relative to the
condition of the army and the measures
of legislation required for maintaining its
efficiency, recruiting its numbers, and
furnishing the supplies necessary for its
support.


Though we have lost many of our best
soldiers and most patriotic OF our citi-
zens--the sad but unavoidable result of
the battles and tolls of such campaign
as that which will render the year 1868
ever memorable in our annals--the army
is believed to be in all respects in better
condition than at any previous period
of the war. Our gallant defenders, now
veterens, familiar with danger. hardened
by exposure, and confident in themselves
and their officers, endure privations with
cheerful fortitude and welcome battle with
alacrity. The officers. by experience in
field service and the action of examining
boards in relieving the incompetent, are
now greatly more efficient than at the
commencement of the war. The asser-
tion is believed to be fully justified, that,
regarded a a whole, for character, valor,
efficiency and patriotic devotion, our ar
my has not been equaled by any like
number Of troops in the history OF war.


In view of the large conscripton re-
cantlr orderad bv tho anamv and THAR