Plymouth Democrat, Volume 15, Number 14, Plymouth, Marshall County, 9 December 1869 — Page 1

President'sMessag3. Washington, December 6. The following is the Message of the President of the United States, delivered to Congress at noon to-day : To the Senate and House of Representatives : In coming before you for the first time as Chief Magistrate of thi9 nation, it is with gratitude to the Oiver of All Good for the many benefits we enjoy. We are blessed with peace at home, and are without entangling alliances abroad to forbode trouble. With a territory unsurpassed in fertility, of an area equal to the abundant upport of five hundred millions of people, and abounding in every variety of useful mineral, in ipmntity mAciettt to supply the world for generations ; with luxuriant crops, with a variety of climate a lapted to the production of every species of earth's riches, and suited to the habits, tastes and requirements of every Bring thing, with a population of forty millions of free people, all speaking one languaM ; with facilities for every mortal to acquire an education ; with institutions closing to none the avenues to fame or any blessing of fortune that may be coveted; with freedom of the pulpit, the press and T he schools; with a revenue flowing into the national Treasury beyond the requirements of the Government supply; harmony is being rapidly restored within our own borders. Manufactures hitherto unknown in our country are springing up in all directions, producing a degree of national independence unequaled by that of any other lower. These blessings and countless others are entrusted to your care, and mine, and for safe keeping for the brief period of our tcnure-of office. In a short time we must, each of us, return to the ranks of the people who have conferred upon us our honors, and account to them for our stewardship. I earnestly desire that neither you nor I may be condemned by a free and enlightened constituency, nor by our own consciences. Emerging from a rebellion of gigantic magnitude, aided, as it was, by the sympathy and assistance of nations with whom we were at peace, eleven States of the Union were four years ago left without legal State Governments; a debt had been contracted ; American commerce was almost driven from the seas; the industry of one-half the country had been taken from the control of the capitalist, and placed where all labor rightfully belongs, in the keeping of the laborer. The work of restoring the State Governments loyal to the Union, of protecting and fostering free labor and providing means for paying the interest on the public debt, has received ample attention from Congress. Although your efforts have not met with the success in all particulars that might have been desired, yet, on the whole, they have been more successful than could have leen reasonably anticipated. Seven States which passed " ordinances of secession, have been fully restored to their places in the Union. The eighth (Georgia) held an election, at which she ratified her Constitution , republican in form, elected a Governor, members of Congress, a State Legislature, and all other officers required. The Governor was duly installed, and the Legislature met and performed all the acts required of them by the reconstruction acts of CongreML Subsequently, however, in violation of the Constitution which they had just ratified, as since decided by the Supreme Court of the State, they unseated the colored members of the Legislature and admitted to seats some members who are disqualified by the third clause of the fourteenth Amendment of the Constitution an article which they themselves had contribute to ratify. Under these circumstances I would submit ! you whether it would not Ik; wise, without delay, to enact a law authorising the Governor of Georgia to convene the members originally elected to the Legislature, requiring each member to take the oath prescribed by the Reconstruction act, and none to be admitted who are inelligib'.c under the third clause of the Fourteenth Amendment. The treedmen, under the protection which they have received, are making rapid progress in learning, and no complaints are heard of a lack of industry on their part when they receive fair remuneration for their labor. The means provided for paying the interest on the public debt, with all the other expenses, of the Government, are more than ample. Tte loss of our commerce is the only result of the late rebellion which has no received sufficient attention from you. To this subject I call your earnest attention. I will not now BMl plans by which this object may be effected, but will, if necessary, make it the subject of a special message during the session of Congress. At the March term, Congress, by joint resolution, authorized the Executive to order an election in the States of Virginia, Mississippi and Texas, submitting .he constitutions, which each had previcusly, in Covention, framed and submit ed, the constitutions, either entire or in eparate parts, to be voted upon at the discretion of the Executive. Under this authority dhe elections were called. In Virginia the election took place on the ßth of July, l'r. The Governor and Lieutenant Governor elected have been installed. The

Legislature met and did all required by this resolution and by all the reconstruction acts of Congress, and abstained from all doubtful authority. I recommend that her Senators and Representatives be admitted, and that the State be fully re-torcd to its place in the family of States. Elections were called in Mississi ppi and Texas, to commence on the 30th of November, 1$59, and to last two days in Mississippi and four days in Texas. The elections have taken place, but the result is not known It is to be hoped that the acta of the Legislatur -s of these States, when they meet, will be such as to receive your approbation, and thus close the work of reconstruction. Among the evils growing out of the rebellion, and not yet referred to, is that of an irredeemable currency. It is an evil which I hope will receive your most earnest attention. It is a duty, and one of the highest duties of the Government, to secure to the citizens a medium of exchange of fixed unvarying value. This implies its return to a specie basis, and no substitute for it can be devised. It should be commenced now and reached at the earliest practicable moment consistent with a fair regard to the interest of the debtor class. Immediate resumption, if practicable, would not be desirable. It would compel the debtor class to pay beyond their contracts, the premium on gold at the date of their purchase, and would bring bankruptcy and ruin to thousands. Fluctuations, however, in the paper value of the measure of all values gold is detrimental to the interests of trade. It makes the man of business an involuntary gambler, for in all sales when the future piyment is to be made, both parties speculate as to what will be the value of the currency to be paid and received. I earnestly recommend to you, then, such legislation as will insure a gradual return to specie payments, and put an immediate stop to fluctuations in the value of the currency. The methods to secure cither of these results are as numerous as are the speculators on political economy. To secure the latter, I see but one way, and that is to authorize the Treasury to redeem its own paper at a fixed price whenever presented ; to withhold from circulation all such currency redeemed until sold again for gold. The vast resources of the nation, both developed and undeveloped, ought to make our credit the best on earth. With a less burden of taxa tion than the citizen has endured for six years past the entire public debt could be paid in ten years, but it is not desirable that the people should be taxed to pay it in th.t time. Year by year the ability to pay increases in a rapid ratio, but the burden of interest ought to be reduced as rapidly aa can be done without the violation of contract The public debt is represented in a great part by bonds, having from five to twenty and from ten to forty years to run, bearing interest at the rate of six percent, and five per cent, respectively. It is op tions1 with the Government to pay these bonds at any period after the ex pi ration of the least time mentioned upon t heir face. The time has already expired when a good part of them may be taken up. The time lsi rapidly approaching when all may be. It is believed that all which are now due

The

VOLUME XV. may be replaced by bonds bearing a of interest not exceeding four and a rate ng lour ana a nalt per cent, and as rapidly as the remainder becomes due that they may be replaced in the same way. To accomplish this it may be necessary to authorize the interest to be paid at either of the three or four of the money centres of Europe, or by any Assistant Treasurer of the United States, at the option of the holder of the bond. I suggest this subject for the consideration of Congress; also simultaneously with this, the propriety of redeeming our currency as before suggested, at its market value, at the time the law goes into effect, increasing the rate at which the currency will be bought and sold from' day to day or week to week at the same rate of interest as the Government pays upon its bonds. The subject of the tariff and internal taxation will necessarily receive your attention. The revenues of the country are greater than the requirements, and may with safety be reduced, but as the funding of ÜM debt in a four or a four and a half per cent loan would reduce the annual cuircnt expense largely, thus, after funding justifying a greater reduction of taxation than would be now expedient, I suggest a postponement of this question ami! the next meeting of Congress. It may be edvisablc to modify taxation and tariff in instances where unjust or burdensome discriminations are made by the presept laws, but a general revision of the laws regulating this subject, 1 recommend the postponement of for the present. I also suggest the renewal of the tax on incomes, but at a reduced rate, say of 3 per cent., and this tax to expire in three years, with the funding of the national debt, as here suggested. I feel safe in sayiug that the taxes and revenue from imports may be reduced safely from sixty to eighty millions per annum at once, and still further reduced from year to year, aa the resources of the country are developed. The report of theSecretary of the Treasury shows the receipts of the government for the fiscal year ending June 30, 1809, to be $370,i43,747, and the expenditures, including interest, etc., to be $341,4iH),.")97. The estimates for the ensuing year are more favorable to the government, and will, no doubt, show a large decrease of the public debt. The receipts in the Treasury beyond expenditures have exceeded the amount necessary to place to the credit of the sinking fund, as provided by law. To lock up the surplus in the Treasury, and withhold it from circulation, would lead to suck a contraction of the currency as to crip le trade and seriously affect the prosperity of the country. Under these circumstances the Secretary of the Treasury and myself heartily concurred iu the propriety of using all surplus currency in the Treasury in the purchase of government londs, thus reducing the interest-bearing debt of the country, and of submitting to Congress the quest on of the di -position to le made of the bonds so pvtMaod. The bonds now held bythe Treasury anion nc to about $75,000,Om, including those belonging to the sinking fund. 1 recommend that the whole be placed to the credit of the sinking fund. Your attention is respectfully invited to the recommendations of the Secretary of the Treasury for the creating of the office of Commissioner of Customs Revenue ; for the increase of salary to certain classes of officials ; and the substitution of increased national bond circulation to replace the outstanding 8 per cent, certificates, and more especially to his recommendation for the repeal of laws allowing shares of fines, penalties, forfeitures, etc., to officers of the government, or to informers. The office of Commissioner of Internal Revenue is one of the most arduous and responsible under the government. It falls but little, if any, short of aCabinet position i.i its importance and responsibilities. I would ask for it, therefore, such legislation as, in your judgment, will place the office on a footing of dignity commensurate with its importance, and with a character and qualifications of the class of men required to fill it properly. As the United States is the freest of all nations, so, too, its people sympathise with all people struggling for liberty and self government ; but while so sympathising, it is due to our honor that we should abstain from enforcing our views upon unwilling nations, and from taking an interested part, without invitation, in the quarrels between different nations or between governments and their subjects. Our course should always be in conformity with strict justice and law, international and local. Such has been the policy of the administration in dealing with these questions. For more than a year a valuable province of Spain and a near neighbor of ours, in whom all our people cannot but feel a deep interest, has been struggling for independence and freedom. The people and government of the United States entertain the same warm feelings and sympathies for the people of Cuba in their pending strug gle that they manifested throughout the previous struggles between Spain and former colonies in behalf of the latter ; but the contest at no time assumed the conditions which amount to war in the senses of international law, or which would show the existence of a de facto political organization of the insurgents, suf ficient to justify a recognition of belligerency. The principle is maintained, however, that this nation is ita own judge when to accord the rights of belligerency either to people struggling to free themselves from a government that they believe to be oppressive, or Vo independent nations at war with each other. The United States have no disposition to interfere with the existing relations of Spain to her colonial fcsse&sions on this continent. They beieve that in due time Spain and other European Powers will find their interest in terminating those relations and establishing their present dependences as independent Powers -members of the family of nations. These dependencies are no longer regarded as subject to transfer from one European power to another. When the present relation of colonics cease, they are to become independent powers, exercising the right of choice and of self-control in the determination of their future condition and relations with other powers. The United States in order to put a stop to bloodshed in Cuba, and in the interest of neighboring people, proffered their good offices to bring the existing contest to a termination. The offer not being accepted by Spain on a basis which we believed could be received by Cuba, it was withdrawn. It is hoped that the good offices of the United States may yet prove advantageous for the settlement of this unhappy strife. Meanwhile a number of Dlejn expeditions against Cuba have been broken up. It has been the endeavor of the Administration to execute the neutrality laws in good faith, no matter how unpleasant the ta.sk, made so by the suffering we have endured from lack of likejgood faith toward'us by other nations. The United Stales schooner Lizzie Major was arrested on the high seas by a Spanish fri irate, and two passengers taken from It and carried as prisoners to Cuba. Representations of these facts were made to the Spanish Government as soon as official information of them reached Washington. The two passengers were set at liberty, ami the Spanish Government assured the United States that the Captain of the frigate, in making the capture, had acted without law that he had been renri . manded for the irregularity of his conduct, ami mat tue Spanish authorities in Cuba would not sanction any act that would vio late the right, or treat with disrespect the sovereignty of this nation. The question of the seizure of the brig Mary Lowell, at one of the Bahama Is

Plymouth Democrat.

lands, by the Spanish authorities, is more the subject of correspondence between this Government and those of Spain and Great Britain. The Captain General of Cuba, about May last, issued a proclamation authorizing search to be made of vessels on the high seas. Immediate remonstrance was made against this, ffl ereupon the Captain General issued a new proclamation, limiting the right of search of vessels belonging to the United States so far as authorized under the treaty of 1795. This proclamation, however, was immediately withdrawn. I have always felt that the most intimate relations should be cultivated between the Republic of the United States and all independent nations on this continent. It may be well worth considering whether the treaties between the United States and them may not be profitably entered into, to sccur more intimate relations, friendly commercial intercourse, and otherwise. The subject of an inter-oceanic canal to connect the Atlantic and Pacific Oceans through the Isthmus of Darien is one in which commerce is greatly interested. Instructions have been given to our Minister to the Republic of the United States of Columbia to endeavor to obtain authority for a survey by this Government in order to determine the practicability of such an undertaking, and a charter for the right of way to build hy private enterprise such work, if the survey proves it to be practicable. In order to comply with the agreement of the United States as to a mixed commission at Lima, for the adjustment of the claims, it became necessary tosend a Commissioner to Lima in August last. No appropriation having been made for this purpose, it is now asked that one be made j covering the past and future expenstsof the Commission. The good offices of the United States, to bring about a peace between Spain and the South American Republics, with which she is at war, having been accepted by Spain, Peru and Chili, a congress has been invited to bo held in Washington during the present winter. A grant has been given the Europeans of an exclusive right of transit over the territory of Nicaragua, to which Costa Rica has given its assent, which, it is alleged, conflicts with vested rights of citizens of the United States. The Department of State has now this subject under consideration. The Minister of Pern lir vinir mmlo - - - - w mmm ' i i t i i I representations that there was a state of! war between Peru and Spain, and that Spain was constructing in and near New lork thirty gunboats, which might be j used by Spam in such a way as to relieve ' the naval force at Cuba so as to operate j against Peru, orders were given to prevent j their departure. No further steps having Iwcn taken by the representatives of the Peruvian Government to prevent the departure of these vessels, and I not feellag authorized to detain the property of j a nation with which we are at peace on a mere Executive order, the matter lias been referred to the courts to decide. The conduct of the war between the allies and the Republic of Paraguay has ' made the intercourse with that country M difficult that it has been deemed ad- : visable to withdraw our representative from there. Toward the close of the last Administration a convention was signed at Loncon for the settlement of all outstanding claims between Great Britain and the United States, which failed to receive tbc dries and consent of the Senate to its ratification. The time and the circumstances attending the negotiation of the treaty were favorable to its acceptance by the people of the United States, and its provisions were wholly inadequate for the settlement of the gross wrongs that had been sustained by this Government, as well as by its citizens. The injuries result- ! ing to the United States, by reason of the course adopted by Great Britain during our late civil war, in increased rates of insurance, in the diminution of exports and imports, and other obstructions to domestic industry and production, in its effect upon the foreign commerce of the country, in the decrease and transfer to Great Britiin of our commercial marine, in the prolongation of war and increased cost, ! both in treasure and in lives, of its sup- ; pression could not be adjusted and satisfied as ordinary commercial claims which continually arise between commercial nations, and yet the Convention treated them simply as such ordinary claims from which i they differ more widely in the gravity of I their character than in the magnitude of their amount. Great even as is that difference, not a word was found in the treaty and not an inference could be drawn from j it, to remove the NW of the llfihilHiH ness of the course of Great Britain in our struggle for existence, which had so deeply and universally impressed itself upon the people of this country. Believing j that a convention thus misconstrued in its MOM and made quite different in its provisions would not have produced the hearty, cordial settlement of the pending questions which alone is consistent with the relations which I desire to have established between the United States and Great Britian, I regarded the action of the Senate, in rejecting the treaty, to have been wisely taken in the interest of peace, and as a necessary step in the direction of a perfect and cordial friendship between the two countries. A sensitive people, conscious of their power, arc more at ease under a great wrong wholly unatoncd than under the restraint of a settlement which satisfies neither their ideas of justice nor their grave sense of the grievance they have sustained. The rejection of the treaty was followed by a state of public feeling on both sides, which I thought not favorable to an immediate attempt at renewing negotiation. I accordingly so instructed the Minister of the United States to Great Britain, and found that my views in this regard were shared by her Majesty's Minister. I hope that the time may soon arrive when the two Governments can approach the solution of this momentous question with an assurance of what is due to the rights, dignity and honor of each, and with the determination, not only to remove the causes of complaint in the past, but to lay the foundation of a broad principle of public laws, which will prevent future differences, and tend to firm and continued peace and friendship. This is now the only grand question which the United States have with any foreign nation. The question of a treaty for Reciprocity between the United States and the British Provinces on this continent has not been favorably considered by the Administration. The advantage of ich a treaty would be wholly in favor of the British producer, except possibly a few engaged in the trade between the two sections. No citizen of the United States would be benefited by reciprocity. Our internal taxation would prove a protection to the British producer almost equal to the protection which our manufacturers now receive from the tariff. Some arrangement, however, for the regulation of commercial intercourse between the United States and the Dominie n of Canada may be desirable. The commission for adjusting the claims of the Hudson Bay and Puget's Sound Agricultural Company upon the United States ha terminated its labors. The award of $050,000 has been made and all the rights and titles of the company on the territory of the United States have been extinguished. The deed I for the property of the company have be n re reived. An appropriation by Congress to meet thin sum is asked. The Commissioners for determining the Northwestern land boundary between the

PLYMOUTH, INDIANA, THURSDAY, DECEMBER 0, 1869.

United States and the British Possessions, under the treaty ofl850, have completed their labors, and the Commission has dissolved. In conformity with the recommendation of Congress, a proposition was early made to the British Government to abolish the mixed courts created under the treaty of April 7, 1862, for the suppression of the slave trade. The subject is still under negotiation. It having come to my knowledge that a corporate company, organized under British laws, proposed to land ujKin the shores of the United States, and to operate there, a submarine cable, under a concession from His Majesty, the Emperor of the French, of an exclusive right for 20 years of telegraphic communication between the shores of France and the United States, with the very objectionable feature of subjecting all messages conveyed thereby to the sovereignty and control of the French Government, I caused the French and British Legations at Washington to be made aquaintcd with the probable policy of Congress on the subject, as foreshadowed by the bill which passed the Senate in March last. This drew from the repre sentatives of the company an agreement to accept, as the basis of their operations, the provisions of the bill, or of such other enactment of the subject as might be passed during the approaching session of Congress: also, to use their influence to secure from the French Government a modification of their concession, so as to permit the landing upon French soil of any cable belonging to any company incorporated by the authority of the United Stales, or of any State in the Union, and on their part not to oppose the establishment of any such cable. In consideration of this agreement, I directed the withdrawal of all opposition by the United States authorities to the landing of the cable and to the working of it until the meeting of Congress. 1 regret to say that there has been no modification made in the company's concession, nor, so far as I can learn, have they attempted to secure one. Their concession excludes the eupi tal and the citizens of the United States from competition upon the shores of France. I recommend legislation to protect the rights of the citizens of the United States, as well as the dignity and sovereignty of the nation, against such an assumption. I shall also endeavor to se lire, by negotiation, an abandonment of the principle of monopolies in ocean telegraphic cables. Copies of this correspondence is herewith furnished. The unsettled political condition of other countries less fortunate than our own sometimes induces their citizens to come to the United States for the sole purpose of becoming naturalized. Having secured this they return to their native country and reside there without disclosing their change of allegiance. They OCefM officii positions of trust or honor which can only be held by citizens of their native land. They journey underpassports describing them as such citizens, and it is only when civil diseord, after, perhaps, years of quiet, threatens them, or threatens their persons or their property, or when their native Stale drafts them into its military service, that the fact of their change of allegiance is made known. They reside p rmanently from the United States. They contribute nothing to its resources. They avoid the duties of its citizenship, and they only make themselves known by a claim of protection. I have directed diplomatic and consular officers of the United States to scrutinize carefully all such claims of protection. The citizen of the United States, whether native or adopted, who discharges his duty to his country, is entitled to its complete protection. While I have a voice in the direction of affairs, I shall not consent to infringe the sacred right by conferring it upon fictitious or fradulent claimants. On the accession of the present Administration, it was found that the Minister for North Germany had made propositions for the negotiation of a convention for the protection of emigrant passengers, to which no response had been given. It was concluded that, to be effectual, all the maritime powers engaged in the trade should join in such a measure. Invitations have been extended to the Cabinets of London, Paris, Florence, Berlin, Brussels, the Hague, Copenhagen and Stockholm, to empower their representatives at Washington to simultaneously enter into negotiations and to conclude with the United States a convention, identical in form, making uniform regulations as to the construction of the parts of vessels to be devoted to the use of immigrant passengers; as to the quality and quantity of food ; as to the medical treatment of the sick ; as to the rules to be observed during the voyage, in order to secure ventilation, promote health, and prevent intrusion, and to protect the females, and providing for the establishment of tribunals in the several countries, for enforcing such regulations by summary process. Your attention is respectfully called to the law regulating the tariff on Russian hemp, IM to the question whether to fix the charges on this article higher than they are fixed pan manills, Is not a violation of our treaty with Russia, placing her products upon the same footing with those of the most f iVored nations. Our manufactures are increasing with wonderful rapidity, under the encouragement which they now receive, with the improvements in machinery already effected and still increasing, causing machinery to take the place of skilled labor to a large extent Our imports of many articles must fall ofT largely within a very few years. Fortunately too many manufacures are not confined to a few localities, as formerly, and it is to be hoped they will become more and more diffused, making the interest in them equal iu all sections. They give employment and support to hundreds of thousands of people at home, and retain with us thcnicam which otherwise would be shipped abroad. The ex tension of railroads in Europe and the East la bringing into competition with our agricultural products, like products of other countries ; self interest, if not self preservation, therefore, dictates caation against disturbing any industrial interest of the country. It teaches us also the necessity of looking to other markets for the sale of our surplus. Out neighbors south of us and China and Japan should receive our special attention. It will be the endeavor of the administration to cultivate such relations with all these na tions as to entitle us to their confidence, and make it their interest as well as ours to establish better commercial relations. Through the agency of a more enlightened policy ban that heretofore pursued toward China (largely due t the sagacity and'efforts of one of our own distinguished citizens), t.ie world is about to commence largely increased relations with that populous and hitherto exclusive nation. As the United States have begun the initiatory in the new policy, so they should be the most earnest in showing their good faith in making it a success. In this connection I advise such legislation as will forever preclude the enslavement of Chinese upon our soil under the name of Coolies, and also prevent American vessels from engaging in the transportation of Coolies to any country tolerating the system. On my assuming the responsibilities of Chief Magistrate of the L nited States, it was with the conviction that three things were essential to its peace, prosiierity and fullest development First among these is strict integrity in fulfilling all our ..hh gations. Second, To secure protection to the penon and property of our ronim i country, wherever he may choose to roam without reference to original nationality, religion, color, or politics, demanding of

him only obedience to the laws and proper respect for the rights of others. Third, A union of all the States with equal rights indestructible by any unconstitutional means. To secure the first of these Congress has taken two essential steps. First, in declaring by joint resolution that the public debt anonld be paid principal and interest in coin. Second, by providing means for paying. These measures, however, could not secure the object desired without proper administration of the laws for collectior of the revenues and economical disbursement of them. To this subject the administration has most earnestly addressed itself, with results, I believe, satisfactory tr the country. There has been no hesitation in changing oflicials in order to secure the efficient execution of the laws; sometimes, too, where in a mere party view undesirable political results were likely to follow for any hesitation in sustaining efficient officials against remonstrances wholly political. It may be well to mention here embarrassments possible to arise from leaving on the statute books the so-called Tenure-of-Office act, and to earnestly recommend its total repeal. It could not have been the intention of the framers of the Constitution, when providing that appointments made by the President should receive the consent of the Senate, that the latter should have the pewer to retain in office persons placed their by Federal appointments against the will of the President. The law is inconsistent with a faithful and efficient administration of the government. What faith can the Executive put in officials forced upon him, and those, too, whom he has suspended for reason? How will such officials serve an administration which they know does not trust them? For the second requisite to our growth and prosperity, time and experience will affirm; but a humane administration of existing laws, amended from time to time, as they may prove ineffective, or prove harsh and unnecessary, are probably all that are required. The third cannot be attained by special legislation, but must be regarded as fixed by the Constitution i'self. and gradually acquiesced In by force of public opinion. From the foundation of the Government to the present, th management of the original inhabitants of this continent, the Indians, has been the subject of embarrassment and expense, and has been attended with continuous robberies, murders and wars. From my own experiem c upon the frontiers and Indian countries, I do not hold either legislation or the conduct of the whites who come most in contact with Indians blameless for their hostilities. The last, however, cannot be undone, and the question must be met as we now lind it. I have adopted a new policy toward these wards of the nation they cannot be regarded in tiny other light then as wards with fair results so far as tried, and which I hope will be attended ultimately with great success. The society of Friends is well known as having succeeded in living in peace with the Indians in the early settlement of Pennsylvania, when their white neighbors of other sects in other sections were constantly embroiled. They are also known for their opposition to all strife, violence and war, and re generally noted for their strict integrity and fair dealings. These considerations induced me to give the management of a few reservations of Indians to them, and to throw the burden of the selection of agents upon the society itself, and the re8ult,hasJprov en most satisfactory. It will be found more fully set forth in the report of the Commissioner of Indian

Affairs. For Superintendents and Indian agents not on reservations, officers of the army were selected. The reasons for thisjarc numerous. When Indian'agents are sent there or near there, troops must, be sent also. The agent and the commander of the troops are independent of each other, and are subject to orders from the different departments of the government. The army officer holds a position for life, the agent one at the will of the President, The former is personally interested in living in harmony with the Indian and the establishment of permanent peace, to the end that some portion of his life may be spent within the limits of a civilized section; the latter has no such personal interest. Another reason is an economic one, and still another hold which the government has upon a life officer to secure a faithful discharge of duties in carrying out a given policy. The buildingof railroads and the access thereby given to all the agricultural and mineral regions of their country is rapidly bringing civilized settlements in contact with all tribes of Indians. No matter what ought to be the relations between such settlements and the aborigines, the fact is they do not harmonize well, and one or the other has to give way in the end. A system which looks to the extermination of a race is too horrible for a nation to adopt without entailing upon itself the wrath of all Christendom and engendering in the citizen a disregard for human life and the rights of others dangerous to society. I see no substitute for such a system except in placing all the Indians on large reservations as rapidly as can be done, an giving them absolute protection there as soon as they are fitted for it. They should be induced to take their lands iu general and to set up territorial governments for their own protection. For full details on this subject I call your special attention to the reports of the Secretary of Interior and the Commissioner of Indian Affairs. The report of the Secretary of War shows the expenditures of the War Department for the year ending the :50th of June, lNW, to be fS0,U4,042, of which f23w89ftX)i was disbursed in the payment of debts contracted during the war, and is not chargeable to the current army expenses. The estimate of $34,531,031 for the expenses of the army for the next fiscal year is as low as it is believed can be relied on. The estimates of Bureau officers have been carefully scrutinized and reduced wherever it has been denied practicable. If, however, the condition of the country should be such by the beginning of the next fiscal year as to admit of a greater concentration of troops, the appropriation asked for will not be expended. The appropriatiou estimate for river and harbor improvements and lor fortifications, are submitted separately. Whatever amount Congress may deem proper to appropriate for these purposes will be expended. The recommendation of the General of !he Army that appropriations be made for the forts at Boston, Portland, New York, Philadelphia, New Orleans and San Francisco, if for no other, is concurred in. I also ask your special attention to the recommendation of the General commanding the military division of the Pacific for the sale of the seal islands of St. Paul and St. George, Alaska Terri tory, and suggest that it cither be com plied with, or that legislation be had for the protection of the seal fisheries, from which a revenue should be derived. Strenuous efforts have been made to place as many vessels in commission or render them fit lor service, if required, as soon as possible, and to substitute the sail for steam while cruising, thus reducing the expenses of the navy ami adding greatly to its efficiency, end looking to our future, I recommend a liberal though not an extravagant policy toward this branch of the public service. The report of the PoetaHteter General furnishes a clear and comprehensive i hibit of the operations of the postal vice, and of the financ ial condition Of flit tmrt ni I Ik J I ul ftli .. i lj.ua rt molil I I r V . f- ... . i .unary postal revenues jor we year r. . inir the Mftth of .Tune. t86(. amounted t $18,344,510, and the expenditures to $23, -

68:1,131, showing an excess of expendi- I

turcs orer receipts of $5,353,630. The excess of expenditures over receipts for the previous year amounted to $0,437,002; the increa-3 of revenues for 1889 over those of 1868 was $2,051,900, and the increase of expenditures was $987,598. The increased revenue in 18G9 exceeds the increased revenue in 1868 by $987,336, and the increase of expenditures in 1869 was $2,527,070 less than the increased expenditures in 1S67, showing by comparison this gratifving feature of improvement that while the increase of expenditures over the increase of receipts in 1868 was $2,430,535, the increase of receipts over the increase of expenditures in 1869 was $1,081,371. Your attention is respectfully celled to recomendations made by the Postmaster General for authority to change the rate of compensation to the main trunk railroad lines for their services in carrying the mails, for having post route maps executed, for re organizing and increasing the efficiency of special agents, for an increase of the mail service on the Pacific, and for establishing mail service under the flag of the Union on the Atlantic ; and most especially do I call your attention to his recommendation foi the total abolition of the franking privilege; this is an abuse from which no one receives a commensurate advantage. It reduces the receipts for postal service from twenty-five to thirty per cent, and largely increases the service to be performed. The method by which postage should be paid upon public matter is set forth fully in the report of the Postmaster General. The report of the Secretary of the Interior shows that the quantity of public lands disposed of during the year ending the 30th of June, 18(50, was 7,6(56,102 acres, exceeding that of the preceding year by 1,010,409 acres. Of this amount 2,899,514 acres were sold for cash, and 2,737,3t5 acres under the homestead laws. The remainder was granted to aid In the construction of works of internal improvement approved to the States as swamp land, and located by warrants and scrip. The caafa receipts from all sources were $4,472,886, exceeding those of the previous year, $2,840,140. During the last fiscal year, 23,106 names were added to the pension rolls, and 4,870 dropped therefrom, leaving at its close, 187,063. The amount paid to pensioners, including the compensation of disbursing agents, was, $28,422,884, an increase of $441,199 on that of the previous year. The munificence of Congress " has been conspicuously manifested in it legislation for the soldiers and sailors who suffered in the recent struggle to maintain that unity of government which makes us one people. The addition to the pension rolls of each successive year since the conclusion of hostilities result in a great degree from the repeated amendments of the act of the 14th ot .July, 18(52, which extended its provisions to cases not falling within its original scope. The large outlay which is thus occasioned is further increased by the more liberal allowance bestowed since that date upon those who, in the line of duty, where wholly or permanently disabled. Public opinion has given an emphatic sanction to these measures of Congress, and i: will be conceded that no part of out public burden is more cheerfully borne than that which is imposed by this branch of the service. It necessitates an outlay for the next fiscal year, in addition to the amount justly chargeable to the naval pension fund, an appropriation of $30,000,000. During the year ending September 30th, I860, the Patent Ollice lamed 13,762 patents, and its receipts were $680,380, being $213,926 more than the expenditures. I would respectfully call your attention to the recommendations of the Secretary of the Interior for uniting the duties of supervising the education of freed men with the other duties devolving upon the Commissioner of Education. If it is the desire of Congress to make the census, which must be taken during the year 1870, more complete and perfect than heretofore, I would suggest early action upon any plan that may be agreed upon. As Congress, at the last session, appointed a committee to hike into consideration such measures as might be deemed proper in reference to the census, and to report a plan, I desist from saying more. I recommend to your favorable consideration the claims of the Agricultural Bureau for liberal appropriation. In a country so diversified in climate and soil as ours, and with a population so largely dependent upon agriculture, the benefits that can be conferred by property fostering this bureau are incalculable. I desire respectfully to call the attention of Congress to the inadequate salaries of a number of the most important officers of the government. In this message I will not enumerate them, but will specify only the Justices of the Supreme Court ; no change has been made in their salaries for fifteen years. Within that time the labors of the Court have largely increased, and the expenses of living have at least doubled ; during the same time Congress has twice found it necessary to increase largely the compensation of its members, and the duty which it owes to another department ot the government deserves, and will undoubtedly receive its due consideration. There are many subjects not alluded to in this message which might with propriety be introduced ; but I abstain, believing your patriotism and statesmanship will suggest the topics and legislation most conducive to the interests of the whole people. On my part, I promise a rigid adherence to the laws and their strict enforcement. (Signed) U. S. Grant. Commissioner Delano's Report. According to the report of the CommisMoner of Internal Heven, uo rveHpts rrom all ourv, exclusive of the tax u 1 oik circulation and du posits, for the fiscal year ending June ."W, IM!', wore klW,O0B.844-9a. Tim iadadaa the aaaaveftaadea' for tn.'" illegally aieK'! and collected, mnouiitlm lo ISttjNBblS, uenrly all of which wa tor laxen aaocHütfd and collet ted on pun ion years. The receipt lor the enrrent year are erftiuiated at f 17r.0OO,KK.' ; receipt for tire first nix inonthH of the flwai years tWW ami 1W are compared, and a com parative itatBiaiiat is Hiibnnttod. bowing the total raoeiptl from the aaBM general nourees of taxation lor Um lir! ix months of the fWnl year lKlis to have U'cu , 10.1.30; for the first ix months of the fiscal year 1MB, V7,iM,MR ; total gain for first six mouths or UMB, 1,18M36. Fer the last nix months of the Intal ye.tr I8M, the receipt frm the same general sources were $04,4T9,iMS; anie Hriod lsii, M.M,i.TMI ; gain, isiiii, Si,08a,KlS. Baoelpti from the aaaw aaaatal bmhom for the six mom ai eadiaa Sapteaiber 30, lW. were ( 104.37 T.'.CO ; for same period ls, 0,M3.UK. The total receipt Im the first quarter of the llscal feat S70. from June : to NrptemlH-r 30, IHfi, show an ajrereate of Ml 41&, anlast $&&JMßJt& tot the same months in the preceding year. The aggregate receipts from June 30 to Novemh.r M, lSol. ar. f 7l.MHi.7o4, against ffin,S5,l of the same tuontha in the pre ceding year. The number of gallon of spirits iu bonded ware-hou-e produced lv'ftro July 1, ISftS. was 1.51,:14. Th.- numher of gallons produced from July N, 1SCH. to. June 30, lSt. was 3. ,575,417, showing that from June 80, 1SX, to June 30. 18W, the lax waa collected on I'r2.0'.ri,4i7 gallon, which was 65,HKt,S71 more galtoai than paid tax in is7. During the eleven month endimr June 30. ist, there were produced a;sd the tax wa collected on 87,575.7X3 gallon of spirits, which, with 1H,H3,8 gallon remaining in bond, chow a total product for the eleven months of 4,23..W1 gallon, equal to uearly ui.noo. uxi for the whole year. Thi. however, the Com missioner ioe not believe include ail the spirits actuailv distilled. Hitherto, in aurveving diatilleriea, the average fermenting period was seventy -nine hours I'nder tiiis rule Si4 distilleries have been operated, having a total mashing and fermenting capacity of 150,15." bushels of !'i;.in in twenty-ioui hours, and a sptrttprodncing capacity of iT.'t.OMi gallons for the same um'. Koni-hundred und forty torn ot laese OWUl lei ics uie now iu operation, and the other art t. inpoiarlh -iHPetuled. Having become convinced '. .i i '. ent nine hours vt us too long lor , raMfettag period, and la fraudk Were perpetrated, 1 1 . idil hotit has In-en fixed us a lm -is. and, hv . ,. .in, v i be itrenenl unacitv of "4 distil,u f.77 Uli callous cvvrv tw. ntv four Man , - - im,,.H,. revenue, but I .1. n .. r.. ,.t M ... -.In. u. .11- .m s 1 count of lcakngo en 3S In bond le regarded aa a

NUMBER 14.

wholesome reform. The Commissioner e-timates the annual prodnct'on Of -pirits at 8Q,O00J3W gallons I year, which ought to produce IfitJMLOBl of revenue. II- thinks it pMble to so execute the law aa to aacare $5o.noo.ooo or tax annually. Head-yisc-s against MJfViaeBUll change iu Uw law. until ib provisions have had a furth -r practical test The number of ciuar- returned for taxation in 1809, at an average lax of ?ö per 1 1 .mm. waa99 58Q . W, against 147, Mjm la latt, wfeoa the ta- ws 10 per 1.00.1. The Comtnis-imier advise that tio change be made in the law rv-pectii.g tax on toliacco. The receipts for stamps since March. ISM, tlltnai by nearly a million of dollars the receipt for tiesame period of l.i.-t year. The Commissioner regnet his inability to recommend any satisfactory plan to pre. real frauds and evasions in the use of stamps. The receipts from bacome t.iv. for the" vear l-'.'.i are t4ti.00-l.tNKI. again-t tlMMjOOS for th- preo-d ing year. The Commis-ioner i of th opinion that, aa long as a large revenue i- seeded, the income In ought to lie continued, and as it expire by limiTa tion next year he recommends that it be "renew, d by Congress at the approaching aaaalaa He advises that the appointment of Supervisors of the Kcvetme be vested u the President, that an increase of salary be gives, aa4 that the afleeof Revenue Detect! re be changed to that of AjaMaat Snpervisor. He says that where honest and efficient officers have been placed the taxea aar beea promptly a.-se-ed and collected. The Commission. ! is of the opinion that, as w per cnt. of the entire receipt wa collected from I Tew ohjecis. all of which may be classed as hmiiee or as the accumulated and associated wealth of the country, the Revenue law i not unjust or bardeasome ft nd he thinks that, fairlv administered, ?17I.iKJO.tNKi m ty b- collected annually froai spirits, tobacco, fermented liquors, lacoaaea, salaries. st i:nps. banks, lesactea, and gat companies. 11.' is of th" opinion that the Tice meter in dis Ullertea have fail -d to accomplish the de-ir.-d end. but has appointed a commission to practically teal their sufficiency. The expense of collecting the reverie for the year was fii.78.177. a reduction of (l.WIS; from the expense of the preceding year. The number nf officers employed, reporting to the bureau, ieti.OO ). Roport of the Secretary of War. Th ' report afCteMfaJ H dkn.in. Secretary of War. open with a reference to Qea. Kawlins. of w hom it says: of Qea. Kawlins. it can with truth be eaM that the virtue of true manhood characterized hir life, as a soldier, citizen, and rlateaBBaa, while on the records of the department will ever remain the evidence of hi hiL'h honor, his patriotism, ami hisagacious judgment.- The Secretary then explains that few recommendations will be made at length, as the duties of the office were assumed but a few days prior to the date or this r port. November M He. however, r. ters to the Material matter ol Unreports presented to him. n -f.-rring to th--report of the (ieneral of the Army, he nays there are V department and districts, each under the command ol a general officer; and the s- v-ral departments are (anted into t military divisions, commanded by the four Qeaeeala aexl iu rank to ih- Geaaral of Um Annv. Th-- rcirular army eou-its of 5 r--Lrii:i'nts of artillery. 10 of cavalry, '.". ol infa.,rv. the battalion id engineers, and the corps of cadets. All the regiments ;,r,. m duty. The Secretary ludiamn :i rocont n.endntion of ii.-n. Sherman that" -ginlatiou In- had enacting the rule and articles Of War adopted by th-' hoard, convened in conformity with the act af Congress, .Inly -is. HMl Mad approving the at w regulations compiled in June, tftfat. TheSecretary the continues, still referring to C.eti. Sh.-rm in s report : ' After the coaeoUdatloa mad-- in accordance with 111- a-t of March "!. 1... there reaaataed, oa Her. I. ms. aattached oaacera. All af th--.- have beea aarijfaed to duty excepting ISCvhoare awaiting orders. It seeaai eqaitable aad ju-t. sliou Id a reduction W made, that officers awaiting ordeis by their own request RBdarefcrriDC thatlo acthe duty, should h.-ve es claim for re -teatioa than tho-e who applied Ita asaljaweal. of this cla-s there are l:j-.i oilicers. Some ot them, however, had special reasons for aajciBg to Isplaced on the awaitm-j- order Hat, which the di pit incut recognized, and which should Ik.- regarded It is certainly Tair that the consequences of a reduction of officers should bdj proportionately on cavalry, artillery, and infantry: and should Coagresi act in the matter, it is prufMr Hint thi consideration should not he overlooked. In reference g tke question of reduction. I concur witli the report in recommeuiiiiiL' mat authority !- riven to retire rreater numlx-i -t Otluvis for cause than i now allowed by law seven per cent, of the officers Of the whole army. The pr-sent maximum of the armv is ! 4SI enlisted aaen. Kelvin-; na two-thirds tor actual ervice, the numlH-r of men i- :;i.s--. Oja the plan of orgauiition submitted in the report there woaid be 44,.')Q meu. two-third tor actual service would be -2'..7.tO men below which it would not Ik- prudent to go. a the necessities of th-' Coun try and the great extent of territory to be protected win require every man ol that numis r. Section ( ot th-; act ot March. lW. providethat, until otherwise directed by mw. th'-re shall be no new appointments and no promotions in the Adjutant QeaeraTf department, in the laanrirlia . mcral's department, in the inartermat- r's depart ment, in tu-C ommi-sary department, m the Ordnance department, in the Emriu-'erV department and the Medical deimrtnvnt. 1 r--c miiii--net that thstatt" corp be retained at the standard Ixed hv tinact of July isidi. and that the clau.-e prohiiiitlHg appointments and promotions i repealed, in order that vacancies may be tilled, a wa the practice prior to the aasaage of the a t ol March :. 1800 Al though the arm;, may tv smaller than heretofore, experience has shown theee officer are aaaeceaaary for the smaller as th-; larger force." He indor-e-the recommendation Of the Adjuiant General of the Army for the repeal of o much of ncttoa of the act of March 4. 100. as prohibits further appointments or promotion, leaving the organization of the Adjutant General's depart in tit as it was fixed by section 10 of the act of July 4. lSi'si. An lerretrf of the number of A-si-tant laapectON General is recommended. With regard to the Bareaa of Military Justice, the Secretary says the Judge Advocate (ieneral reports the BBJaher of record Of military court- received, reviewed, and registered to ls is. 4-41: number of special reports made. IjML The Paieaa, in addition to ils regular duties, has Ikh-ii charged with th-' duty ol systematically arranging and in d-'xiug the important state pasera betoQcfae; to the office of the late Col. L. C. Tmn- r. Jiid--- Advocate, and lirig Gen. L C. Baker, ProToat Hhwhal, and the rark ia steadily pragreaataK. The expense of the Quartermaster's department during the fiscal year ending June .'to. IsO'.i. wen9S1,M&,484.08, a "reduction of 114,900,000 below those of tbc preceding fi-cal year. Iu February. MOO, the numher of civilian lured by this department exceeded In. 0(10. which haa alace Is en reduced to IjBOOl Nine offfeen have doae duty in the IJiiMtiermastcr's department, in addition to the officers of th-' establishment. M in iiuints-r. The report of the ljuartermaster Uetwral statethat the clerical force of this office ha b -en reduced so low by the late legislation as to - iiou-ly retard the puhiic businc-: and 10 provide tor th-- settlement of a-counts some increase in the force iueoeeMOfT. A belMiag capable of accommodating all of the bureaus of the War department, tire proof and secure, le much needed. Military records ol great value are exposed to lest ruct ion. and are so scattered as ti imped--and delay the pabttc baedaeea. The monthly rental of ImlMtam, and lots occupied by bniiddig owned by the Polled Htatea, aaaoaided to $l.'J4 IM. U-iiig a yearly rental of $30, .-. The railway ceoaaaaiea to which the military railroad material In the Quartermaster's department was sold on credit, at the end ol the war. incurred a debt originally of 7.. V.M. 400. Interest has increased this amount to fO.OOU.tmti, about one half of which has Iveupaid ; but roaae railroads beta in default, and showing no disposition to Beet their obligations, suit has been lately oid-Ted to be brooghl against th--m. But f- w veaaahi bare is-.-n earned, bv the department during the rear. The railroads of the companies. ha baX declined to adhere to the war rates ot transportation, have ls'-'n paid during th-- local year upon theta Keaeral tarifls. wilh a classification of BÜUtary supplies settled in conference at a convention of geaeral Irelghl agents. Than have been paid tat walei traiispir1ation daring the vear f 1,421. s2. tor railroad iratisporlalioii &S3M04 30. or line amount fUV .'it was paid to the Pacific railroads; one halt being: paid in caU. and me onicr nan reiuiuou in ui treasury to meet the iatereet on the bonds gaaraa teed by the I nited States. During the year HK,mJ persons. ,700 animals and tv.w n tons ot stores have beea moved by water, and isi.tum person, u. HO animals, and 40 turn tons ot tötet by railroad 7 i too inn, ot .it urea have b-eii moved bv contract -Mil IUI " on" p-"" I has occupied MOM ol the or wagon transportation, and ors. for wagon tnin-portation. Th-- Pact Be Kailroad rnu'ipaJ routes ol lormer ha- saved tne rovern meiit much money in sunnh ini; the po-t - al-iiLr t he line. By trtaaflae between the department ol War and the Interior, supplies tor the Indians are now transporti-d hv the Ouarterniaster's depart ment on routes in the Indian Territory, the actual cool under the contract- b. inu' refunded to the War de partment out of the appropriation ol fi.o 0.0011 for pacification of the Indians granted April 1( AiltlollL'U ine amount oi noiuiufc mm eiiip.-t-c on hand at the end of the war has been redu 1 bv sales and is-n-'s. there st'll remains a stis k valued at over 1000,000. The general depots have beea reduced to four, and at only two ort hem ia then any large collection of material, viz : At thJL lk.111 .hi tli 1 lclot .ire .tu. i al Jaftaa Mill mill ni ii.ii . -it i . M ...... , ... ii, - sott Tille, on the Ohio. TIm latter t being drawn upon constantly, but it still contains over fllJaJO, 000 worth of war material. There are 74 natiiuial cemeteries, and '113 local. post, or private cemeteries in which aoMHN H buried. The titles of 71 of the h.'Mional cclo ten. have lieen approved a- perfect, by the Attorne Oeneral. There are -fcK.HoT interments reported. which 71.HIC. bare been Id- ntifled The expenditure on the work has lieeu nearly a.t.000.000. Darias the rear S.856 animals were purchaed. and :t.t were sold. These latter produced the sum ot '2-21. VtS 2S. Subsistence siiiinlie for the armv have l'en mainlv procured in 10 large market cities The aver see nst ol the ration at these maiket ha. ts-. n bom -iJIreiit Salt meats on I he Pacific coast for troons stationed there, have been obtained at lavora ble pn.-e. Tobacco, at an average monthly value of IlKinOO. has been furnished to troops at cot prices and the Freedmen's Bureau has Iwn sup piled with store to the value or nearly f4Mi.ii to moot of which ha already been paid for. and tin remainder i In prce nf refunding at the treasury. 'I he issue to the Hull -hi al lie various point hav amounted to more than f I.Vi.lion, and at the renne! of the Interior deiiartitient store valued at f-'n.r-Oo wen- issued to l--titute Osage and others to prevent starvation during the winter. I'nder an arrangement between the War department and tin tiepartnieut of the Interior, the Indian department i being furnished with food for the Indians on th several reservations on lie- Misnmu i:- r.andin the Indian Territory The rationa faraoahed i pre Berthed, or apiiroved, bv the Interior department audits value is to be n paid fi-nn appropriation made bv section 4. ot the ml ol Apiu hi. u-w There have been iMtid f -27 it'll 75 a commutation ol rations to I nion soldiers, whik- prisoner of war ( laiin for -upplies runiished th' army during thwar, amounting toüt,Mo.Hüti.l&. have been received of which f3W,03o.H7 have been allowed, and ft.

.''lOiii 13 hare Von rejected. Darin the nVe year H.W07 account and return have been received from various officers, of which 11.787 have been ftamined and referred to the Third Auditor for final t tie menu A change in the army ration, by extending the variety of articles, and also In the manner of disposing f the savings of soldiers" mess--and bakeries, would b-- of advantage. A chanfe ia the law is recommended, so a- to allow officer of the line, when afline a aaitant commissioners of subsistence, to receive an per month in addition to their pay. instead of the -um of fin less one ration perdav. now allowed The current expenditure of the Medical denartl.ent during the fleal vear cuding June 30. IHM. PI MSlSHt 41. The total eris-nditures of that

department, including war debts and refundment. were f70.'vil.r3i;. and the available balance at tnclose of the vear was f lT9.2o 073. The health of the troop- has been good. The total nnmrw-r ol a- on the ick li-t during the yeir wa l"4.Ri. The overage number constantly sick since last report was -2.SH5. or abnnt rH per cent. The number of denth was or discharge tor nisanimv i.iz. Th-number of commission-'d nvdiral officer for dntv on June 30. !. wa t!1. being an average ot one medical officer to 2ol men. The numtR-r of iots was tv id- deMchm-'nt and outtot - There an now two vacancies of surgeons, and 44 of sistant surgeon in the medical corn. The expe rience of the pat three year h shown that thi present onrant mtion of the mdical staff i satis factory : hut even wen all the vacancies in it (I lied, it would still be barely adequate to the demand made- unon it. The Paymaster General presents the following seminary : Balance m hand off MPMMter M the becoming of the fiscal war. July 1, im MUWM Received from the treasury during th-- fiscal vear 3;.2ir..(if 00 Heeeived by paymasters 'rom other sources exciuive o: -urns transferred among them-'.;- I'W.IWO Total to be accounted for f4-i.44W.7702 Acconnted for as follow" : Disbursement to the regular armv. f 13.67ft.250 fit Disbereanente to the military acad emy Iv3.2fe 7S Dishnrcmcnt to volunteer, back pay. and bounties 1.4.1 8.635 13 Total riisb fement ff.iS 72 141 Amount refunded to the treasurv. . . 4.tM..4S7 ciO Balance in hands of paymaster -Tune on . .i. ri o MM 111 f i, J j; ij.w "ill "l Total f 42 4'.t 770 20 There remain now in service onlv th ! regular paymasters authorized he the reorganization of the irmv. pased Julv 2 9f,", The di-bnr-emeiii for reconstruction pnrpos are T.13.Tffl.4i. ano tne bataaee in the hands of the pavmaterCK-t Vjg sfi. f 110.0t:j 79. The total amount m-nurseri i.v the l.-iVTMater' depi-tni -nt for additional bout tie. Includlng those eettled by the Second Auditor and paid by th Treasury department on treasury certificate, from the la-ginning to the 3"th of -lune, is r7.-sn.f50. The river and ha'bor works have progressed na rapidly a the mean- appropriated for their excu tion ällow-'d. The appropriation in April last of 2.nno.0fn for thee work- was distributed in ac cordance withfthe law. so as host toVnhserve thefintereat- of commerce. The nrver of the northern and northwestern tak- in progrescd rommenstirat.'lv with the amount appropriated for conluciins it. The Ijike Suis-rioT urvcv i drawing to com pletion. It has devecpe(i many new haroors of ref-it'j-e. and ado know.i danger to navigation hicblv important to the commercial in'--r--sts of the Sta'c depenent on this wate-line of communication for the transportation of cereal and ore. hja noisanees and ireotoical exploration and nrvey have Ix-.-n continued during the year in the ter ritory west of the Misfi"ippf river, and the information that has 1--n obtained i supplied 'to the troops oceupyine that section of th-' conntry. The survey of the Colorado of the V---t ha not. for pedal renons. been resumed Collateral survey now in propre- may furnish evidence of theneceetty or the nrvey ot tie- upper portions ot tne river, anil tlv improvement ol the lower portion as a line of militarv upplv. and of travel and tranixirtntion from the mine- of Son thera Nevada. The reolocieal tirvT i-t-t completed, frcm he Sierra Nevada to the Rocky Mommru is fruitful in valuable result, especially in relation to the mining reirions. and ihe extent of the coal formation. It alo furni-bes other scientific data of great interest. Lils-n v arsenal. Missouri. Ins been sold during the year under authority of the act of July 25. l-ft, and realized the 'im of fR.012.50. The St. Louis irsenal will Is' sold under the same act. as oon a it can be spared, -hould lie reserved ral armv purposes. but certain buildings thereat from ale and donated to gene. Banao nrmMk Beer York; Vermont : Mt Vert-on arsenal. t'hamplaln arsenal. Alabama: Appalachi. la arsenal. Honda, and Norlh Carolina atvenal. North Carolina, are reec-m-mended to he sold It is advi-able that thi should be done, and that the captured land in Shrev-'port, L-i . and Marsh-dl and JeJfcfMn. T- t . and in Marion and Dav's counties. Texas, -hould be similarly disneeed of. A principal nnWMl of construction and depsit mid a powder depot ;ir-- recommended to be esttb-!ish'-l on the Atlantic and I'acifi.- coa-t-. and in the valley of the Mi-s'i sjppi. The sale of wm- of the ment Eastern arsenals is suggested a a m sn to raise funds wherewith to e-tannso trie principal arsenal for the Atlantic coast. Rock Island is the point for th-' principal arsenal tor in-- vaiiej to iuM -siippi. powder depots should lie eta':hed on the Atlantic and Pacific coa-t . Some more halMban arc reqnired at the .l.-fferoti barrack. tud are recommended to be paid for out of the poc Is of the sale of the St ltii areenal. The expenses ol the Trcedmen s Bureau were met the fir-t vear with th- v-x !- ol rent, sal--of crops, rhool tax. and tuition, and sale of tonderate State- prop-'ity. 'I n amount receive from all the miscellaneous sources wa- $1. ' 045 ga, and from appropriation" by Con gress since .lulv. 18Ü, fll.te-i.7rst. making l total of ?12..i0. . Si received ,ron " source. The expenditures, including tu-- v -units of the Department of necrro affair." from .tune 1, Irtfgi. to An?. 31. 1WJ. have been ll.l'.M.tr. pi The total expenses of the bureau have been f 13,52 1.s;- s-. I 'tic division commanded hy I.ieut. i.en. Sheridan embraces the departments of iiakota. the Platte, and Missouri, commanded respectively- bv Maj e-n. V. II Hancock. Ibt. Mai Oen. Angnt. P.vt. Mat lien. S-hofi'-ld. Thee three department cover a terri toy of great extent. . . - . ' . . r ... a -ii I j in which mo-t oi t nc cmaiDB, ma-emut. im wild Indian abide, and include the States f Illinois. Iowa. Mi-sonrt, KntMM. Kehtaoha.nni Mhanasot.i. and the Territories of ol-mido V v M-'xi o, Wvom'mr. I'tah. Dakota. Montana, and the Indian The administration ot the-e departments ha- p-cu ably and economically conducted : but the number of troops now on dut'v in them is deemed in-ufh cient. with the present Minced -TremMh of companies, to meet the want- of th-- sen ice. Although Ii.- ' b ve been numerous depredation in Ihi division, the condition of Indian aflairs :-v, rv mm h better than last year. The policy ot reservation adopted by the Indian department i-. in the judgement of (Jen. Sheridan, the policy that will pnt aii end to Indian murders and depredations. Kverv effort 1 made io avoid the necessity of pun ishing the aaaajee, with the tToatfj hope that Ihejr may settle down on their r-servation and adopt a more peaceful and civilized, life. The sy-tem of supplying the wild band under the preent Indian management is working well Tin- Indian receive all that the Government intend In should, and can have no plea of bad faith to urge a an excuse for a return to hi former habit. (ten. Sherman's K ; ort. In his report a General o; the Army. ien. 8her man oppo-tfs any further reduction of tin- army. He savs th-' entire army is on duty, and he ha con stant calls for more troop, which cannot b- granted. He calls the President's earnet attention to thin. -it t er. so lhat Congress may be api-eu I to t oto diminish the militaryestablishment becati-- ol th-greatf-xt-'iit of country : the unsettled character of a far-'e region, rm asnred north, south. eat and - -by thousands or miles: the act or Indian who in habit thi region, and the gro int' necessities of af lording greater protection to the roada that traverse this region, and the mining and agricultural Interests therein. While the nation at ArTr j- at peace, a st it of qnasi war continue to exist over one-half it extent, and troop therein are eznoeei to labor, marches, fleh's. and danger that amount to war: withdrawing or largely diminishing the trooj in Texa. ihe Indian country Ari.ona.New Mexico. Montana; Idaho, or .Alaska, as well a in MHO part ol the Southern States, would, he believes, result in a condition of tblMJl amounting to anarchy. He refers to the lalntr and exposures it officer and men. and hopes that th y will receive th-' assurance, to which they an- fairlv entitled, that their labors are appreciated. Jmeer hare been required to perform the dime of Indian a-'ents. governor. shcrifK Ac . hMflffh to their military 1 raining, and have done thi di.ty without a murmur and with marked iutelli-rence. Never, he avs has he known the army officers so poor, hut I hey hope that by the appreciation of cum ttf their compensation will soon become more satilaetory. Any diminution of their pay would result in a loss of the services of every good officer, to Ihe extreme damage rf Ihe atmr itself te-n. Shermau advies the adoption by Congress of the new army reirii'atioiis, a prepared by the MCtal Hoard of Officer. In relerring to araiy consolidation, he sav: There are unattached officers, of whom I.V. are awaiting orders: the number of retired officers is 177. He uryssthat cavalry and artillerv regiments be officered alike in reci mental and companv organization, and asks for an extra lieutenant for cavalry companle. He argue that It is unjust that a reduction of the army should fall excln-lvelv upon the infantry arm of service, and recommend that, after t'omrre- has enacted theneceary laws the President a-cmrde abaid of disinterested general officers, to whom stall he committed the whole matter of redu. tl n and tc organisation. Gen. Sherman comment upon what he calls the absurdity or the staff ot the army making their reports to the Sc. retatv '1 Uar : if this is continued, he sav. we have the ahsnrdity ot the General commanding the rinv. uh hi htel staff offirer reporting t- somcb -dy else. Il- hop. for legislation that will allow officers of the army tocall upon Ihe liencral l- r troop- in'-ad ol tinPresident. He adv. ate- an inciea--- ol pav f -..Idlers. He recommend lhat forts cove ring the citie-or Portland, llostou. New lork. Philadelphia. Italttmore. New Orleans, and San Franc t -co ! completed as soon a ,M-slble He calls alien. ion to the earnest recommendation of t.en. Thorns,. he Uaod-oi . k a 8L Paul and St orge; be sokl to the hiebe? hiddc lie is informed that parties in San Fraoci-co are ready to hid several million dollars, which, he a.s. would go far toward 'demnifying the viovcriimcni for u otherwiis; poor and costly country. Tub King; of Prussia has rcpriovitl a murderer svi'ti iio d t iliath. TluToupon the Pill Mall Gaziits inritilpiil in omipleasant sarcasm : " It would 1. difficult o imagine a case ;n which the myal preropativc of mt rcy couM be ciewtaed w ith greater propriety. Mr. Wittman had nnrdtred hit four wives, one ita th.other, una his twochihlren; ami the pain ful position in which he was placed, ow ing to these acts of indiscretion bring brought home to him, naturally culled forth thwarmest sympathies ot all who value tin Bacredness of human life " In Waltham, Vt., recently, a girl 8 year of age, finding her dress in names wfw remarkable pri senoe ot mind smothered tlie hn , and cut off her burning apron with a pair of scissors, while h- r little hands wens being burned to blisters, and not only saved her own life, but that ol tire baby also, by keeping away from it until the fire was put out