Indianapolis Journal, Volume 3, Number 50, Indianapolis, Marion County, 2 December 1873 — Page 1

VOLUME 3. NUMBER 50.

INDIANAPOLIS .TUESDAY, DECEMBER 2. 1873. PRICE, TWO CENTS.

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We have made' considerable redactiong in all departments,to saitthe timei Our stock is immense and offers the beat inducements to cash a.. . . buyers. Niw York Onb Price . Clothkg House. SKCXJJfK THE SHADOW ERB THE SUBSTANCE FADES." OO TO CLARK'S When you want to get the best Photographic Work n the city at reasonable prices. nortlely CARPENTERS & BUILDERS! .Superior lndacements offered la Doors, Sash, Blinds. O-lass, Hardware, and Mechanics Tools, -bt STOREY, NEW & CO. EXAMINE OTJR STOCK AND PRICES BEFORE euRCHAsma elsewhere. spi-3me EL j. COBB, DRUGGIST & APOTHECARY, -N"o. 2 Palmer Hotiae Slock, WILL REMOVE TO HIS OLD STAND N. E. Cor. Wash. & Illinois St., ABOUT DECXBER 8 oct4e9m EVENING JOURNAL, DTDIANAPOLI8, TUESDAY, DECEMBER l. PROTRACTED FELICITY Those who have been feeling; good for seme days over the anticipated drawing of that quarter of a million dollar prize .at Louisville tomorrow, will be glad to know that their golden anticipations, like linked sweetness long drawn out, need not be dissipated for four months yet, the drawing having been postponed to the 3iet of March, which ia the last postponement according to Got. Bramlette. NEW MUSIC. H. S. Stedman, the publisher, has laid upon our table "Thoughts of Childhood," song and chorus by J. F. Kinsey, the words by Luna M. Smith. An easy and very pleasing melody. Also Sylph Scbottiech. by Karl Merz, a Sylphish melody, adapted to the requirements of medium players Both are elegantly gotten up. FromD P. Fauld", Louisville, Ky. "Ah. se Looely," by Richard B. Wiley, a somewhat difficult and prety song, arranged 'for the guitar. . NEW HOME COMPANY. The certificate of the incorporation of the Shaw C arris g 5 Company was filed to day In the office of the Secretary of State. The object i the manufacture of carriages and other vehicle. Capital stock, $200,000; term of existence, fifty years; place of business, Indianapolis. Directors for first year: Benjamin C. Shaw, Samuel R Lippincott, Thomas C. Reading, Irwin Robbins and James H. F. Tompkins, BANKRUPTCY. A petition for ad judication in bankruptcy has been filed in the United States District Court against Train Caldwell, Nathasiel Caldwell, Samuel Caldwell, James Caldwell, Isaac B. Loder, and Joseph B. Cole, of Connersville. Hearing set for December 8. The petition filed November 24 against Joseph W. Zook and Sanford Rusk, of Waynetown, Montgomery county, was yesterday dismissed by the petitioning creditors. LECTURE ON THE MODOCS. The lecture on the "Modoc War and the Aseassicatioa of General Canby," by Hon. A. B. Meachem last night at Association Hall, was an exceedingly interesting, hamoroos and well delivered address. Mr, M. is an old Indianian, but has rt3.ded on the Pacific Coast since 1844. The mournful interest attaching to the lectare was relieved by occasional touches of humor. He congratulated himself upon escaping with big scalp, from the fact that he had no hair on the top of his head for savog fingers to grasp' For one unaccusomed (as he avers) to public speaking, Mr. Meachem made an excellent impression upon bis auditory. . He proposes to ioliow this with another lecture, now being prepared, urxm the result of the Modoc war. POSTAL CAKD8 AND CHESS. From the Detroit Free Press. A boarder nt the Aulinsael House and a resident of Cnicago, commenced a game of chess on, the 15th day of June- and ceased playing the other day, each making sixty-live moves and using as many postal cards. The Chicago man was in a tight place and gave up beaten. A PANICKY JOKE. From the Chicago Evening Post President Grant is peculiar for his reservebut he is rapidly getting rid of forty-four millions of it.

BY TELEGRAPH,

SECOND EDITION. THREE O'CLOCK. THE SPANISH FLEET INACTIVE FOR FEAR OF MUTINY. SUSPENSION OF A BEAVY COTTON FIRM THE NEW YORK BAR TO PROTEST AGAINST JUDGE DAVIS. ELECTION OF A NEW POPE ANNOUNCED FOREIGN HEWS. 6 RE AT BRIT ACT. SPANISH INSUBORDINATION. London, December 2. A special dispatch says the Inactivity of the Spanish fleet at Car tagena, is owing to- doubts of .the fidelity of the crew of the iron-clad Saragosas. A 8ENSATION SPOILED. The story of a duel between Gen. Manteufel and Von Goefon, is said to be without foundation. ADDITIONAL INCIDENTS OF THE ORBIT DISASTER. Among the passengers on the deck of the Villa de Havre was a French gentleman of remarkable coolness and presence of mind. He comforted many by his words. A priest aeked a woman: "Are you a Catholic?" "Yes," was the answer. "Repent, then," said the priest, "and I forgive your Bias." With theee last words the priest eark in the waves. The penitent was saved. The boats crossed and recroesed the scene of the disaster, searching for survivors until 10 A. M. All further efforts were then abandoned as hopeless. The survivors remained on the Locherne until 3 p. m , when they were transferred to the Tri Mountain. CAPT. VBGCRHABT'a NARRATIVE. On Saturday morning, November 23, being in latitude 49 legs. 24 min., longitude 85 degs. 30 min., we sighted a vessel on our weather bow with bowsprit gone and sails flying. We hove to, and saw signals of distress flung out. Coming nearer, the ship proved to be the Locherne, eight days out of Londay for New York. Coming alongside, the Captain asked me to rescue the survivors of the Ville de Havre, which had been sunk by the Locherne, at 2 o'clock that morning. After consultation, it was deemed advisable to transfer all the rescued people, but one French clergyman who had become deranged. Another of the party was left to take care of him. The 6urvlyors of the crew were crowded Into the small cabin In a pitiable state. They were heart broken. 111 clad and destitute; but amidst their grief they expressed their gratitude to the Captain and crew of the Locherne for Bavin g them from a watery grave. I supplied them with all the clothing which could be spared from my ship, and with other requisites. Nevertheless, some were almost naked, and others were badly Injured bv fragments of the wreck coming in violent contact with them. After receiving all on board the Trimountaine, I decided to cruise about the scene of the wreck. Search was continued until nearly dark that night, but we saw only two casks floating, and the search was finally relinquished, and we proceeded on our voyage toBnstoL I intended to land at Qaeenstown, but a favorable wind enabled us to reach Cardiff. The survivors atUch.no blame ta the officers of the Locherne for the catastrophe, but say they did every thing possible to prevent the enormous sacritice of lite. The Locherne was very badly damaged in her bows; her bowsprit was clean gone, and a great bole was cut In her above the water line. The passengers of the Ville de Havre eay that Captain 8urmont during the many days of fog took every precanlion, and was constantly on the bridge of the steamer. No one explains how the collision occurred. ANOTHER ACCOUNT. The Tribunal correspondent says: Then, women and children, seized with terror, rushed on the deck in their night clothing, and all waa confusion. The Locherne's bow had cut a fissure In the deck of the Ville de Havre twelve feet In depth, and the iron plating of her side was crushed in for a distance of thirty feet. Most of the passengers were too terrified to try to save themselves. Many prayed, and many laid down with the calmness of utter despair. Some, hearing the water pouring into the ship, never quitted their state rooms. Whole families were thus drowned together. Among the survivors was one lady whose husband and four children had perished in the sea. Three young ladies lost their fathers and mothers. One young man lost his father, mother and sister, and another gentleman lost his sister whom he was taking to France for her health. PRUSSIA. CONCERNING THE VBSeELS CAPTURED AT ZOOLOO REPRESENTATION AT OUR CENTENNIAL. Berlin, December 2. The German Government has addressed representations to the government of 8pain relative to the seizure of of two German vessels in the Zooloo archipelago, which were taken to Manilla and adjudged lawful prizes. It is expected the decision of the court at Manilla will be reversed by the Madrid Government, and the vessels released. The Federal Council have accepted the official invitation to Germany to participate in tbe Centennial TCThJhitlnw at PmliliinhlilK?S and have decided to leave the appointment of commissioners to represent Germany at the exhibition in the hands of Prince Bismarck. . .NEW YORK. , SUSPENSION. New York December 2 The suspension of J. H. Herrick & Co., cot ion and produce merchants, is announced. The Arm declines to make a statement for the present. ASSAULT. While escorting prisoners to the station house last night, officer E. L Barns was struck on the head and the skull fractured. The assailant escaped. THB BAR GOING FOR JUDGE DAVIS. Tbe members of tbe bar will meet Thursday to protest against the action of Judge Davis in relation to Tweed's counsel and Stokes' jurors. THB pope's RnrmRsnnThe London hour says it has trustworthy injyi motion inai oy me privately expressed wish of Pius Ninth, Cardlcals have been in consultation and selected Cardinal Ptccl, Archbisnop of Perugia for tbe next Pope. He was born in 1310, and became Cardinal in 1853; tea hard working B.shop, and is ca.led an Uultramontane; but would no doubtlive on term of amity with the Italian Government. Even the Trie thinkers of Italy greatly respect Cardinal PtccL THE ORIGIN OF THE WORD FILLD3USTES. The river Vly, in Holland, Is said to have iarmsbed tbe name jiyooat, in .English in hpiniah, Jlibole, or by softening the first syllable, JUiboteio a sort of small fast-sailing vessel of aDout 100 tons burthen, which in the seven teenth century held la sailing qualities about me same place now occupied by the Baltimore clippers. The buccaneers of the West Indies, who began their depredations on Spanish commerce in mere row-boats, as thev acquired the means of a more formidable outfit selected these crafts as best suited to their purpose. Hence they become known in French as fllibuatiers, and in Spanish as filibuitert. an ampliation gradually extended in those languages ta any

THE VERY LATEST.

FOUR O'CLOCK. PRESIDENT'S MESSAGE. To the Senate and Haute of lleproen a tint: Tbe year that has passed since the submis sion of my last message to Congress has, es pecially me latter part or it. been an eventful one to the country. Ia tbe midst of great national prosperity a financial crisis has occured that has brought low fortunes of great proportion; political partisansship has almost ceased to exist, especially in the agricultural region, finally the capture upon tbe high seas of a vessel bearing our flair has for a time threatened the most serious consequence and has airltated the public mind from one end of the country to the other. But this, happily, now la In the course of satisfactory adjustment, honorable to both nations concerned. ' FOREIGN RELATIONS. The relations of the United 8tates. however. with most of the other nations, continue to be friendly and cordial. With France, Germany, Kussia, Italy and the minor European Dowera. with Brazil and most of the South American Republics, and with Japan, nothing nas occurred during tbe year to demand special notice. The correspondence between the Department of State and tbe various diplomatic representatives from these conntries is transmitted herewith. VIENNA EXPOSITION. In executing the will of Con ere as. as ex pressed in its joint resolution of the 14th of February last, and in accordance with tbe provisions of the resolution, a number of practical artisans and scientific men and nonorary commissioners were authorized to attend the Exposition at Vienna as commissioners on the part of the United States. It is believed that we have obtained the object wmcn congress naa in viewwnen it passed the joint resolution in order to enable tbe neoDle of the United States to participate in the ad vantages oi international exhibition of agriculture, manufacture and the fine arts, to be held at Vienna, I take pleasure in adding that the American exhibitors have received a gratifying number of diplomas and of medals. INTERNATIONAL PATENT RIGHT CONGRESS. During the Exposition a conference was held at Vienna for the purpose of consulting on the system prevailing in different countries for the perfection of different inventions. I authorized a representative from the Patent Office, to be present at Vienna, at the time when this conference was to take place, in order to aid, as far as he might, in securing any possible addition to the protection of American Inventors in Europe. The report of this agent will be laid before Congress. CHINESE RELATI.OKS AND THB COOLIB TRADE. It Is my pleasant duty to announce to Congress tbat the Emperor of China, on attaining his majority, received the diplomatic representatives of the Western powers la person. An account of these ceremonies, and of the interesting discussions which preceded them, will be found in the document stransmitted herewith. The accompanying papers show that some advance, although slight, has oeen made during the past year towards the suppression of the infamous Chinese coolie trade. I recommend Congress to Inquire whether additional, legislation .ba not needed on this subject. THE GENEVA AWARD. The money awarded to the United States by the tribunal of arbitration at Geneva, was paid by her Majesty's government a few days in advance of tbe time when it would have become payable, according to the terms of tbe treaty. In compliance with the provision of the Act of March 3d, 1873, it was at once paid into the Treasury, and used to redeem, so far as it might, tne public debt of the United States, and the amount so redeemed was invested in a five per cent, registered bonds of the United States for fifteen millions five hundred thousand dollars, which . is now held by the Secretary of State, subject to the future disposition of Congress. I renew my recommendation, at the assembling of the last session of Congress, that a commission be created for the purpose of auditing and determining the amounts of the several direct losses growing out of the destruction of vessels and their cargoes by the Alabama and Shenandoah after leaving Meloourne, for which the suf ferers have received no equivalent or compensation, and of ascertaining tne names oi persons enimea to receive com' pensation tor the same, making tbe comButa tions on the basis indicated by the Tribunal of Arbitration at Geneva, and that payment at sucn josses oe autnorizsd to an extent not to exceed the awards of the tribunal at Geneva. THE NORTHWESTERN BOUND ART SETTLEMENT. By the action approved on the 14th of Feb ruary last, uongress made provision for cam pie tic g, jointly with an officer or commissioner to be named by her Brittanic majesty, the determination of so much of tbe boundary line between the territory of Great Britain as was left incompleted by the commissioners appointed under the act of Congress, August 11, 1856. UndeT the provisions of this act the Northwest water boundajy of the United states nas been determined and marked in accordance with the award of the Emperor of Germany. A protocol and a copy of the map on which the line was thus marked, are contained in the papers submitted here, and I also transmit a copy of the report of the Commis sioner lor maikinir tbe boundary- between the United States and tbe British possessions, west oi tne i.aKe or tne wooas, ana oi me opera tions of tbe Commissioners. Daring the past season surveys have been made to a point 497 miles west of the Lake of the Woods, leaving about sou miles to oe surveyeo. The field watk of which can be completed during me next season. JOINT CLAIMS COMMISSION. The commission organized under the provi sion of the treaty of Washington, for tbe set tlement and determining of claims of citizens of either power against the other arising out of acts committed against their persons or property during the period between April 13, 1861, and April 9, 1865. made its final award on tbe 25th day of September last. It was award ed mat tne uovernment oi the united States should pay to the Government of Her Brittanic Mnjesty, within twelve mont hs from tbe date of tbe award, tbe sum of fl.KjU.8lV in gold. The Commission disallowed, or dismissed all other claims of British subject against the United Stales. Tne amount of the claims presented by the British government but disallowed, or dismissed, ia understood to be about $93 000.000. It also disallows all tbe claims of the United States against Great Britain, wniuh were referred ' to it. I recommend the early passing of an act appropriating the amount necessary ta pay this award against the United 8utes. I have caused to be communicated to the Government of the King of Italy the thanks of this Government for the eminent services rendered by Count Conti, as toe third commissioner on this commission. With dignity and impartiality he discharged its duties, requiring great labor and constant patience to the satisfaction of botn governments. A SPECIAL COURT OF CLAIMS. I recommend legislation to create a special court, to consist of three jaclges, who shall be empowered to tear and determine all claims made on tbe United States, growing out of acts committed agai nst their persons or property during the insurrection. The recent i conference under the Treaty of Washington

was confined to claims of British subjects, arising during the period named in the treaty, but , it is understood there are other British claims.

of a similar nature, arisiog after the 9:h of April, 1865, and it is known that other claims oi a like nature are advanced bv citizens or subjects of other powers It Is desirable to have these claims also examined and disposed ACHEBN WAR. Official information being received from the Dutch Government of a state of war between the King of the Netherlands and the 8ultan of Acheen, tbe officers of the United States who are near the seat of war were instructed to observe an impartial neutrality. It is believed that they have done so. THE MEXICAN CLAIMS COMMISSION. The Joint Hninmlulnfl nnl Ik. n with Mexico; of 1868. having again been proluugeu, nas resumea its DUSlness, which, it is hoped, may be brought to an early conclusion. . THE VTRGINIUS CASE The steamer ViriHrfdia waa m(Ii wh J.. Of ftpnf.pmhpr 1H7ft Hnl. 2rAa..A -f tho r , t v. j i v muvi mm port of New York as a part of tbe commercial luwrmo Q me j nitea otates. on the 4th or October, 1870, having t,he certificate of her register in the TIHllfll lpcral farm ah. a.tlat the port of New York, and has not since beea wiluiu me territorial jnnsaiction OI the L nltc a States. On tbe 3 1st of October laht. hile aajlinir nnrtpr tha dm r, FT.if . - -4k v . u, j uiu;u States on the high seas, she was forcibly seized dv me opanisn gunboat Tornado. and wan arrlpr) Into th. wm- f Santiago de Cuba, where many of her passenf;rs and crew were inhumanly, and so far- at east as relates to those who were citizens of the United 8tates, without due process of law, pull w UCHbU. It Is a well-established principle, asserted by the United States from the beginnlag cf her national independence, recognized by Great Bitain, and other maritime powers, and statel by the Senate in a resolution passed unaniujuuBijr uu me io.a oi wane, ic3, tntrt American vessels on tbe hig' seas, in time of peace, bearing the American flig, remain under the jurisdiction of the country to which they belong, and therefore any visitation, molestatln or detention of such vessel by force on the part of a foreign powr. Is ia derogation of the sovereignty of the United 8tatea. In anABii wtUa.l I 1 ... .vimuB.itc nun luiu principle, tne restoration of the Virginius, and the surrender of the survivors of her passengers and crew, and a due reparation to tbe flig, and the punishment of mo ouwuuiiwca wuo naa been guilty of the illegal acts of violence, were demanded. Th finiriA . i recognizjd the justice of the demand, and has autwjgcu lur tuts mmeaiate delivery of the vessel, and for the surrender of the survivors of the passengers and crew, and for a salute to tbe flag, and for proceedings looking to the punishment of those who may be proved to have been guUiy of Illegal acts of violence toward the citizens of the United States, and also towards Indemnifying those who may be shown to be entitled to indemnity. A copy of a protocol of a conference between the Secretary of 8tate and the Spanish Minister, in which the terms of this arrangement were agreed to, will be transmitted herewith. The correspondence on this subject with the Legation of the United 8tates is in cypher and by cable, and needs tbe verification of the actual text of the correspondence. It has seemed to me to be due to tbe importance of the case not to submit this correspondence until the accurate text can be received by maiL It is expected ahortly. and will be submitted when received. In taking leave of this subject for the present, I with to renew the expression of my conviction that the existence of African slavery in Cuba Is a principal cause of the lamentable condition of the island. I do not doubt tbat Congress shares with me the hope that It will soon be made to disappear, and that peace and prosperity may follow its abolition. The embargoing of American estates in Cuba, cruelty to American citizens detected in no act of hossility to tho Spanish Government, the murdering of prisoners taken with arms in their hands, and, finally, the capture upon the high seas of a vessel sailing under the United 8tates flig, and bearing a United States register, culminated in an outburst of indignation that . has seemed for a time to threaten war. Pending negotiations between tbe United States and the government of Spain on tbe subject of this cap ture, I have authorized the Secretary of the Navy to put our navy on a war footing, to the extent at least of the entire annual appropriation for that branch of the service, trusting to Congress and the public opinion of the American people to justify my action. PPOTOCOL. Protocol of the conference held at the Department of ptste, at Washington, on the S9th of November, 1873, between Hamilton FUb. 8-creary of State, and Rear admiral Don J ate Polo De Ban abe. Envoy Extraordinary and Minister Pl.nipotentlarv of Spain. The undersigned, having met for the purpose of entering into a definitive agreement respecting tbe case of the steamer Virginius, which, while under the flag of tbe United States, was, oft the 81st day of October last, captured on the high sea, by tbe Spanish man-of-war Tornado, have reached the following conclusions: Spain, on her part, stipulates to restere, forthwith, the vessel referred to, and the survivors of her passengers and crew, and on the 25th day of December next, to salute the flag of the United 8tates. If, however, before tbat date. Spain should prove to tbe satisfaction of the Government of the United States tbat the Virginius was not entitled to carry the flig of tbe United States, and was carrying it at the time of her capture without right, and improperly, the salute will be spontaneously dispensed with, as in such case not being necessary or requirable; but the United 8tates will expect. In such case, a declalmer of intent of indignity to its flag in the act committed. Furthermore, If, on or before the 25th day of December, it shall be made to appear to tbe satisfaction of the Un.ted States tbat tbe Virginius did not rightfully carry the American flag, and was not entitled to American papers, the United States will institute inquiry and adopt legal proceedings against the vessel, If it be found that she has violated any law of tbe United States, and against any of the persons who appear to have been guilty of illegal acta in connection therewith. It being understood that Spain shall proceed, according to the second proposition made by Mr. Sickles, and communicated in bla telegram to the President on the 27th, to investigate the conduct of the authorities ho violated Spanish law and honorary obligations, aad innict punishment on those wno may have oOended. Other reciprocal reclamations are to be subject to consideration and arrangement between the two governments, and in case of no agreement to be tutjttt to arbitration conditional upon tbe assent of the Senate of the Uulted States being given. It is etipulated that the time and place for tbe surrender of the Virglaius and the survivor j of these who were'ou board of ber at the lime of capture, and aUo the time, manrer and place for the sa;uie to the flag of tbe United States, it there should be occasion for euca salute, ba eutject to arrangement between the unaersigued within the next two days. Signed II. Fish, Jas. K. Polo Barnabee. AMENDMENT TO TBE CONSTITUTION. Assuming from the actios of the last Congress, appointing a committee oa privileges and elections to prepare and report to tbla Congress a constitutional amendment to provide a better metbod of. electing the President and Vice President of the United States, and also from the necessity of such an amendment that there will be submitted to the Btat Legislatures for ratlfi cation, such an Impvovement ia our constitu

tion, I suggest two others for your consideration:

First, to authorize the executive to aDDrova of so much ef measures passing the Houset as nisuagmenT may dictate, wit bout approving the whole; the disapproved portion or portions to be subjected to tbe same rules as now, to wit, to be referred back to the Hoase in which the measure or measures originated, and If passed by a two thirds vote of the two Houses then to become a law without the ipproval of tbe President. I would add to this a provision tbat there should be no legislation by Congress during the last twentv-f our hours of its sitting, except upon vetoes, in order to give the executive an opportunity to examne and approve or disapprove understanding. Second, to provide by an an amendment tlat when an extra session of Congress is convened by executive proclamation, legislation dnrbg tbe continuance of such extra session shall te confined to such subjects as the Executive may bring before it, from time to time, in writing. lbe advantages to be sained by mete two amendments are obvious. ' One setsion in each year is provided for by the Con stitution, in which there are no restrictions v the subjects of legislation iby Congress. If more is required, it is in the power of Congresi, during their term ot office, to- proyida I -sessions at any time. The first of these amend ments would protect the public against tee many wastes of public money which creep into the appropriation bills anl other import art measures during tbe expiring hours of Congress, to which otherwise consideration cai not be given. THE TREASURY DEPARTMENT. The receipts' of the government from al sonrces for the last fiscal vear were 1355.738,204, and the expenditure on all accounts (290,345,245; showing an excess of receipts over ex penditures of f 43,3t 95. But it is not pro bable that this lavorabie exhibit will be sbowi for the present year. Indeed it is very doubt ful whether, except with great economy onth part of UoEgrees in making appropriations. and the same economy in administering tb various departments of the government, tbe revenues will not fall short of meeting the annual expenses, including interest on tbe public debt. I commend to Congresi such economy, and point out the two sources where it seems to me it might commence, to wit: In the appropriations for public buildings in the many cities where work has not been commenced; in appropriations tor river and harbor improvements, in those localities where improvements are of but little bf-nett to the general commerce; and for fortifications. There is a still more fruitful source of expenditure which I will poiit out. I refer to the eaey metnod of manufacturing claim for losses incurred in tbe suppres sion ot the late rebellion. I would not be un derstood as in opposition to the erection of go id, substantial or even ornamental buildings av tbe government whenever such are needed. In fact, I approve of the government ownloglts own tulldings in all sections of the country, and nope the day is not lar distant when it will not only possets them, but will erect in tbe capital suitable residences for all persons who now receive commutations for quarters, or rent at government expense, and lor tbe cabi net; tbus setting an example to the Bta:es, which may in luce them ta erect buildings for their senators. But l would nave the work conducted at times when tbe revenue of the country would abundaatly justify it. THE PANIC. The revenues have materially fallen off for the last five months of the present Iscal year from what they were expected t produce, owing to the general panic now prevailing, which commenced about the middle of September last. Tbe full effect of thedlsaster.if U should not prove a blessing in disguise, is vet to be demonstrated. In either event it is your duty to heed the lesson, and provide ny wise ana wen consiaerea legisiauon, as lar as it lies in your power, against its recurrence, and to take advantage ot all benefits that may have accrued. My own judgment is, that however much individuals may sutler, one long Btep has been taken toward specie payments; that we can never have permanent prosperity until an entire new basis is reached, and that a specie basis cannot be reached and maintained until our exDorts, exclusive of gold, pay lor our imports, interest due abroad, and other specie obligations, so heavy as to leave aa appreciable accumulation of precious metst in tbe country from the products of our mines. The developement of our mines during the past year, and the prospective development ot them for years to come, are gratifying in results. Could butone half of the gold extracted from the mines be retained at home, our advance toward specie payment would be rapid. To increase our exports, currency is required, to keep all tbe Industries of the country employed. Without this, national as well as individual bankruptcy must ensue. Undue in flation, on the otber hand, while It might give relief, would only lead to lofutlon ot prices. The impossibility of competing, In our markets, for the products ot borne skilled labor, and repeated renewals of the present experience demonstrate that elas ticity in our circulating medium, aad just enough of it to transact the legitimate busi ness of tbe country and keep all Industries em ployed, la what is desired. The exact medium is specie, tbe recognized medium of exchange tne world over, inat obtained, we snail nave a currency ot an exact degree of elasticity. If there be too much of it for the legitimate pur poses of trade and commereet will flow out ot tbe country; if too little, The reverse .will result. To hold what we nave and appreciate our currency to that standard, ia a problem. deserving of the most serious consideration of Congress The experience of the panic has proven thai the currency oi the country. based as it is on the credit of the country, is tbe best that has been devised. In times of such trials currency becomes worthless, or so much depreciated in value as to inflate the necessaries of life as compared with the currency. Every one holding it has been anxious to dispose of it on any terms. Now we witness the reverse. Holders ot cur rency hoard it as they did gold In former expe riences oi a like nature. It is patent to tbe most casual observer that much more currency is required to transact tne legitimate trade of the country daring the fall and win ter months, when vast crops are being moved; and during the balance of the year, with our present bt stem, the amount in tbe country re mains the same throughout the entire leir. and in an accumulation of all surplus capital of the country ia a few centers, when not em ployed in the moving of the crops. Tempted thereby by the offer of interest on call loans, .Interest being paid, this surplus capital must earn this interest, paid witn a pront. Being subject to call, it can be loaned oily In part, at bee',, to tbe merchant or manufacturer for a fixed term. Hence, no matter how much currency mere migni oe in me couiitry ii worn a be abcoroed, prices keeping pace with the volume and panics, stringency and disisters would ever be recurring with the autumn. El ticity in tbe money system, therefore, is tne object ta be obtained nnt; and next to that. s far as possible, a prevention ot tbe uve of money la stock and other apeclea of (peculation. To prevent the la. ter, it seems to ma tbat one great step would oe tuUtn by probibiticg National banks from pavlog intcref t on deports, by reqaring item to told reserves iu tneir own vaults, and by forcing th em into resumption, though U would be only in legal tender notes. For this pnrpo.'.e i would euggest the eeu.blisbn.euf, of clearing hooses ter a consideration. To secure tbe former many plana have been suggested, most it tot ail of wrach look to me like inflation, on the one hav d, or compelling the Government on the c.her to pay interest, without corresponding benefits, on the surplus funds ot the country, during the seasons when otherwise unemployed. I submit for your consideration warmer tais difficulty might not be overcooa by authorizing the Secretary ot tha 'frcMnrj to issue

any time to mMnnii h.ir. issue any amount of their notes below a fixed percentage of issue, say 40 per cent., on the banks dtvRttinr with it.. t.... .v. United States an amount of government bonds ciui uu me amount or notes demanded, tbe banks to forfeit to the government Bay four per cent, on tbe interest accruing on the bonds v icuKou during kue time mey remain with i Treaanrr a. j nv.nvj 1UI fcUB increased circulation, the bonds so pledged to be redeemable by the banks at tbelr pleasure, either in whole or part, by returning their own bills for cancelation, to an amount equal to the face of the bonds withdrawn. T - . tvwm luinuci ouKCBb for your consideration the propriety of authorwum w ui minis a meir standing issue at pleasure, bv rpt.n minor tnr cdi.IsiU. their own bills, and withdrawing so many United States bonds aa are pledged for the tbe bills returned. In view of the great actual contraction thot has taken olace in the enrren. cy. and the comparative contraction constantly going on, due ta the Increase of speculation. me increase oi manufactures, and ot all tho industries, I do not believe that there is too much ot it now for the dullest nerlol of tha ysar. Indeed, if clearing houses shonld ba established, thus forcing redemption, it is a. quest to oreoiuldevatioirvlueiher banking should not be made free, retaining all the safeguards now required to secure the billhoJders. a akw mi A a , . "j wuuiuoiiioi oi me present laws regulating national banks and as a further step toward rjavin? th wm fnr specie payment, I invite your Utentlon to a consideration of the propriety of exacting from them them their int.enr.lnn aa Dart nf thatr moovwa .1th.. t whole or a part of of the gold Interest accruing nnnn th hnnria rttAA as security for their issue. I have not reft ected enough on the bearing this might have In producing a scarcity ot coin with which to pay amies on imports to give It my positive recommendation; but your attention is invited to thft anhippt. Tlnrlno- tha 1 -tct fnim enrrency has been contracted directly by the wiiuurawu ui tue mree per cent, cemncatef, compound Interest notes, and 7-30 bonds outstanding on the 4th of March, 1860, all of which took the place of legal tenders in the uau rceerver, w tue extent or oa,ow,uuu. Daring the same period there has been a muck larger comparative contraction of the currency. The population of the country has largely increased. More than twenty-five thousand miles of railroad have been built, reauirincr the active riM nf anitl to operate them. Millions of acres of land nave teen opened to cultivation, requlrlm? capital to move the products. Manufactories have multiplied beyond all precedent in the same period of time, requiring a capital weekly, for the payment of wages, and for the purchase ot material, and probably the largest of all comparatively, contracts, arising from the organizing of free labor in the South. Now every laborer there receives his wages, and for the want ot savings banks the greater part of such wages is carried in the pocket or hoarded till required for use. These suggestions are thrown out for your consideration, without any recommendation that they shall be adopted, literally, but hoping that the ucoi. uiciuuu may oe arnveu at to secure EUCB. an elasticity of th rnrrrni-, will b.sn .m. ployed all industries of the country, and pre sent such such Inflation as will put oft, indefi nltely, tbe resumption of specie payments, aa vvjtvk wcvuubij vj ue wieueu ior oy aii, ana uy none more earnjtl than tha r numi. J - ..wiv v. kwvl" most directly Interested, those who earn their vicau vj mo tweu ui toeir orow. ine decisions of Pnncrrpaa nn thia inMwl will V, n nA (he hearty support ot the Executive. THE 8HT BUIXDINO INTEREST. In previous messages, I have called attention to tbe decline In Americsn ship building, and recommended such legislation as would secure to us our proportion of the carrying trade. Stimulated by high rates and abundance of freight, the progress tor the last year in ship bailding has been veiy satisfactory. There baf been an increase of three per cent, in the amount transported In American vessels, over the mount of last year. With the reduced cost of material which has taken place, it may reasonably be hoped tbat this c barge will be maintained, and ever increased. However, as we pay about I SO, 000,000 per annum to foreign vessels for the transportation of our surplus products to a market, thus increasing the balance of trade against us to tbls amount, the subject is one worthy ot your serious consideration. THE TRANSPORTATION QUESTION. Cheap transportation Is a subject that has attracted tbe attention of both producers and consumers for the past tew years, and has contributed to, if it has not been the direct causa of tbe recent panic and stringency. As Congress, at its last session, appointed a special Committee to investigate this whole subject, during the vacation, and report at tbls session, I have nothiog ta recommend until their report is ready. There Is one work, however, of a national character in which tbe greater portion of tbe East and. West, the North and tbe South, are equally fnterested, to which I will invite your attention. The 8tate of New York has a canal connecting Lade Erie with tide water on the Hudson river. The 8tate of Illinois has a similar one connecting Lake Michigan with the navigable water on the Illinois river, thus making water communication inland between the East and. West, North SBd South. These great artificial water courses are the proper! of theStotea through which they pass, and pay toll to those 8tates. Would it not be wise statesmanship to pledge these States tbat If they will open these canals for tbe passage of Urge vessels, tha Government will look after and keep in navigable condition the great public highways with. . which they connect, to wit, the overslongh oa the Hudson, tbe St. Clair's flits, and the Illinois and Mississippi rivers. This would be a national work, one of great value to the producers of the West and South, in giving them, cheap transportation tor their produce to thr seaboard, and a market to the consumers i. tbe East, in giving tbem cheaper delivery ot those articles ot food which do not Bad a foreign market, and the prices which, there fore, are not regulated by foreign demands The advantages of such a work are too obvious, for argument. I submit this subject to you, therefore, without further comment. EXPLORATION OP TEE AMAZON AND ITS TRIB- -UT ARIES. In attempting to regain our lost Commercar and carrying trade, I have heretofore called atteution to the states south ol us, as oftering; a field where much might be accomplished. To further this ot ject, I suggest a small appropriation be made, accompanied with authority for tbe Secretary of tbe Navy to lit out a naval vessel to ascend the Amison river, and to tbe mouth of the Madura, tbence to explore that river and its tributaries. In Bolivia. . and to report to . Congress at its next " session, or as soon as practicable, tbe accessibility of the country by water, l a. reaourcee, and the ponuUtion so reached. Such an exp oration will con but little. It can do no harm, and may result in cstablif hlng a trade til value to both nations. THB TAKIFP THB MINT In further connection with the Treasury Department, I would recommend a reyUioa aud codification ot the tar.ll laws, ai d the operitg of more mints for the coining of money, with authority to coin for such nations as may apply. WAR DEPARTMENT. The attention of Congress is Invited to tha recommendations in the report ot the Secre tarp of War, herewith accompanying. Thaapparent great cost ot supporting the A cade-. my is fully explained In tbe report, and it wi jX receive your attention. While inviting yo ue attention to all the recommendations ta'de by the Secretary ot War, there in two which 1 would especially invite jqq to consider. First, the importarvje ot preparing for war in time ot peace, by providing proper armament lor our seji coast da

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