The Lewis County Democrat. ruuusnuD KTEEY WKDKBBDATVORNIHO, BT

C . D . M A H V I L L E & C O ; EDITORS AND PROPRIETORS.

Offioe, 6 6 M a i n - s t r e e t , L o w v i l l e , K . Y

T e r m s o f S u b s c r i p t i o n . T w o Doi.f.Aus a year ifpaid in advance. II

* o t p * i d within the year, FUTTYUKNTB addition­a l will be charged.

Poor, disabled soldiers, and deoripid old men, Who cannot afford to aupport a paper in their family, upon leaving their namea at this oflice Will receive an occasional copy gratuitously.

TCerms o f A d v e r t i s i n g . Twelve Iiir.es make a Square, andwherean

4 lvBrtisementi8lessthan a square,it is charged »» one, unless a special agreement Is made in h e contrary.

~ lpau"e."~ 1 w-T^"w.jrinTj'i'ni.[»"ni.l6 m. |1 yr

1 square. | 1 . 6 0 | a . 0 U | 2 ^ f o p | 8 ^ l Q : W j l 6 : 0 1 )

1 squares \ 2.00l3.00|4.50|7.o6|9,UO|12.00ll8UO

t squares | 2.50|4.o"ol6-On|9,00112.(K)|UOO|Sl20U

j column. | 4.O()|6.0O|9.0u|ll00ll4O0|18O0|8ti0l)

4 column. | ».O0|8.0O112OO|lflO0[2OO0|25OOl46O0

J column. |10O0|140l)|18nO|22OO|80lin|5ll00|950b

LiADin SPECIAL NOTIOKS double the above l a t « i . Tranoient advertisers one-third advance 6 f the above .

Noticesinsertcd as N'ews Matter twenty cents U t t l i n e , every subsequent linefifteen cents.

No paper discontinued, exeept at the option of » h . publisher, until all arrearages are paid.

J o b P r i n t i n g . Our facilities for Job Printing are not sur­

passed in the oounty. t o this branch of our business we pay particular attention, and be-tere we can give good satisfaction to all who »,Tor us with their patronage.

(Oornelms E. Stephens,

Attorney and Counselor at Law AND NOTABY PUBLIC.

wmumtrntim «s=a •^ii-T'^r —-i fctsaafti mm^m-tam-m

f f l H attend to Proceedings i n Bankruptcy, and other Business in the United Slates Courts.

T R A S T O N E , J - L I C E N S E D A U C T I O N E E R .

Lowville, Lewis Oounty, N. Y. 12

WBNRY~ETTURN EH,

ATTeitNKY AND COUNSELOR AT LAW, Lovtville, Ltwit Onunty, N, Y.

OfBce in the Leonard block. n8

p H A R L E S D . A D A M S ,

ATTORNEY AND COUNSELOR AT LAW, Particular attention paid to ooneotions.and

Conveyancing. Office in. the Leonard block, Lowvi l le , K. Y . n l ,

T^DWARD A. BROWN, "

ATTORNEY «fc COUNSELOR AT LAW.

Agent for Pensions, Bounties, &c. Offiecin O'OonnaU'i Block, Lowville,(formerly occupied b y N. B.Sylvester, Esq.)

T-p S.ITEIIKILL,

ATTORNEY* CO UNSELOR AT LA W, a a d 3» l io i to iandCounce l lor in Equity.

Lowville, Lewis County.

Q M I T H <fc C O L L I N S ,

ATTORNEYS <£• COUNSELORS AT LA W. OSce No. 126 Genesee-st., (two doors below

canal and T. 0 . Grannis' bank) UTIOA. Will attend to cases in bankruptcy, and

•ther business of the State and United Stales Courts.

• I * . W. SMITH. , I i 0 - D- «0I,L1NS.

DU. CHARLES W. BUBDICK, Late of Jefferson County, N. Y.,

(where lie has successfully practiced his profes­sion for the past 16 years,) would respectfully announce to the citizens of Lowville and vicin­ity that he has located at Lowville for the prac­tice ol medicine, and will promptly attend pro-fesslonal calls in town or comity. Office at the • e w Drug Store of C. \V, Burdick & Oo., No. IS State stroet. Residence No. 10 Collins St.

RKFKRKSCKSI Dr. Grafton, Dr. Hannahs, Dr. Spencer, Dr.

Orawe, Dr. Bates, Watertown ; Dr. L. E. Jones Vvans Mills; Dr. Derby, Antwerp,; Dr. Oar-penter, Gouvernour; and numerous patrons in JefTerBOn oounty. " "

C. D. BUD1), M. » . P H Y S I C I A N & S U R G E O N .

PIUMAHKNT BKSinKNOK,

• U T T g t X K r . 3 ? J . "ST.

~~ I I . S I I I I A U B , FAStlONABLE HAIR DRESSER AND

SIIAMPOONER, TTill put rators in order, and keeps the best

«nality ftr sale. Perfumeries of all kinds. Shep in Winchell's block, Lowville, N. Y.

TACKMAN* HOUSET COPENHAGEN, LEWIS OOUNTY N. Y

CHARLES J. CARPENTER, Proprietor. This house has recently been put in good repair »nd the traveling public will find the best o accommodations and conveniences. 3MI

~ H U B B A R D ' S H O T E x i

mVSSIAN SETTLEMENT. CROGHAN.

LEWIS COUNTY, N. Y,

B.R HUBBARD,Proprietor. Tliebesjae.com-modatiom to be found at this hotel for the traveling public—careful attention, good stu-blinjr, &c. Passengers conveyed to mxl from the steamboat landing. Tho best facilities ior hunting and fishing parties c m be found at this house, and excellent guides provided when deiired. « _

"" J A C K M A W f l O U S K , " (Fronting on Court and Arsenal sts.)

WATERTOWN, N. Y. B t a g o leave this House for all parts, daily. j t _ l T BACON & JONES. Proprietors.

^ O R U F P H O U S E , WATERTOWN, N. Y .

0 . C. BURNETT, (formerly of American Hotel) Proprietor, 26-1 y

I i I K B ¥ H O U S E , WM. C. HANCHETT, Proprietor, Court street,

Watertown, N. Y. This houte has under­gone thorough refitting and offers the best ac­commodations for the traveling public. n26

B RANTINGUAM LAKE HOUSE

XT BRANTINGHAM LAKE GREIG, LEWIS OOUNTY.

yt. D. HUBBARD, Proprietor. This is a fine summer resort for pleasuro parties seeking recreation. %W Pleasure boatskept in rea­diness for use en the lake, and a lino hall tor

dancing parties.

f N S U K A N C E A « E W C * . - O A S f l AS-X sets over TWKNTV-SKVKN MILLION Dollars. iBTNA,n«rtford,incor.l819,asset3.$'1.83:!,M8 HOME New Y o r k . . . . 8,023,896 HARTFORD,Oonn.,incor. 1 8 1 0 . . . . 2.°2fi,220 CONTINENTAL, New York J ' ^ f ' ^ 2 SECURITY, New Y o r k . . . . . . . ; ; . . M " > ? " INS.OO.ofN.AMERlCA,Phila.l79.l 2,101,2fi6 INTERNATIONAL, Now York }>**£'J*° PHIENIX, Brooklvn.N.Y 1,658,5117 MANHATTAN, N'. Y., incor. 1821 I W J B LAMAR, New York 609,068 AGRICULTURAL, Watortown.N.Y. J M / ' ™ RPRIN(iFIRr,[),SpringgeM, Muss.. i80,n (2 ENTERPRISE, Cincinnati, Ohio 1,304,828 TRAVELERS' Life & Ac'dt, Hortford nnn.niin CHARTER OAK LIFE, Hartford.. 4,o(io,no(i

Aggregate assotts $27,472,061 MORRIS CHASE, Agent,

28 Lowville, N. Y.

LEWIS COUNTY DEMOCRAT, aaSEBXSXBB&*Z2&

Operations o f t h o trutf! or o u r m i l i t a r y force o n \i» S e p t e m b o r last w a s 4 8 , 0 0 0 fftwn is c o m p u t e d t h a t b y t l iu 1 H t& J l n e x t tliia nt tmbor will b e awircfti

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N O N O R T H , N O S O U T H , N O E A S T N O W E S T ; B U T T H E U N I O N A N D T H E C O N S T I T U T I O N , N O W A x \ D F O R E V E R ! "

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VOL. XII I . LOWVILLE, K T., W E D N E S D A Y , DEC. 16, 1868. •NO. 19 • W B

I 'RESIDENT'S M E S S i G E .

UECONSTKUCnON A FAILURE.

Fe l low-c i t i zens o f t h e Senate and Hou3e of Representa t ive s : U p o n tho re-assembling o f Oongress ,

it again becomes m y fluty to call your at­tent ion t o the state o f the U n i o n and to its cont inued disorganized condit ion un­der the various laws which have been passed upon the subject of reconstruc­tion. I t may be safely assumed as an ax iom in the g o v e r n m e n t o f States, that the greatest w r o n g s inflicted upon a people are caused by unjust and arbit­rary legislation,, or by the unrelent ing degrees o f despot ic rulers, and that the t imely revocat ion o f injurious and op­pressive measures is the greatest g o o d that can b e conferred u p o n a nation. T h e legislator or ruler w h o has the wis-don and magnanimi ty to retrace his steps w h e n convinced o f error, will, sooner or later, b e rewarded with the respect and grat i tude o f an intel l igent and patriotic people. Our o w n hiHtory, a l though embracing a period less than a century, affords abundant proof that most, if not all, of our domest i c troubles are directly traceable t o violat ions o f the or­ganic law and excess ive legislation. T h e m o s t striking illustrations o f this fact are fijrnished by the enactments of t h e past three years upon t h e question o f recon­struction. After a fair trial t h e y have substantially failed, and proved perni c ious in their results, and there s e e m s to b e n o g o o d reason w h y they should longer remain upon the statute book. States t o which the Const i tut ion guar­antees a republican form of g o v e r n m e n t h a v e been reduced t o military dependen­ces in each o f whieh the people have been m a d e subject to the arbitrary will o f the C o m m a n d i n g General . A l t h o u g h the Constitut ion requires that each State shall b e represented in Congress , Vir­ginia, Mississippi and T e x a s are y e t ex­c luded from the t w o Houses , and con trary t o the express provisions o f thai instrument were denied participation in t h e recent election for a Pres ident and V i c e - P r e s i d e n t o f tho U n i t e d States T h e a t tempt to place the white popula­t ion under the dominat ions of persons of color in the South has impaired, if not destroyed, the k indly relations that had previous ly exis ted between thevn_ and mutual distrust has engendered a feel­i n g o f animosity which, leading in s o m e instances to collision and bloodshed, has prevented the co-operation b e t w e e n the t w o races so essential to the success o f industrial enterprises in the southern States . N o r have the inhabitants o f those States a lone suffered from the dis­turbed condit ion o f affairs g r o w i n g ou t o f these Congress ional enactments . T h e ent ire U n i o n has been agitated b y g r a v e apprehensions o f troubles, which m i g h t aga in involve the peace o f the nation. I t s interests have been injuriously affect­ed by the derangement of business and labor, and the consequent want o f pros­perity throughout that portion o f the country.

T h e Federal Constitution, the magna cluxrta of American rights, Qua« wUooo wi se and salutary provis ions w e have successfully conducted all our domest ic and foreign affairs, sustained ourselves in peace and in war, and become a great nation a m o n g the p o w e r s o f the earth must assuredly b e n o w adequate to the sett lement of quest ions g r o w i n g out o f the civil war w a g e d alono for its vindica­tion.

" J I Y POLICY."

security o f a free State, the right o f the people to keop and bear arms shall not be infringed. I t is bel ieved that the repeal of all sUoh laws would be accept­ed by the Amer ican people as, at least, a partial return to the fundamental prin­ciples of the Government , and an indi­cation that hereafter the Const i tut ion is to bo made the nation's safe and uner­ring guide . T h e y can be productive o f no permanent benefit to the country, and should not be permitted >to stand as so m a n y m o n u m e n t s o f the deficient w i s d o m which has characterized our re­cent legislation.

O f * I f y o u r l > m l n e « f t in d u l l . a n d you can sell cheap advertise in the Lewis Conn ly Democrat. Our rfftdors can Jeal best with adrertlwri, as thereby ilifj" know them t»b» it»» jn««bant i .

T h i s great fact is m a d e mos t manifest* b y the condition o f tho country when Congress assembled in the month of December , 18C5. Civil strife had spent its entire force in the southern States , the people had warmed into national life, and throughout the who le country a healthy reaction in public sent iment hail taken place. B y the application o f the simple, yet effective provisions o f the Constitution, the E x e c u t i v e Department with the voluntary aid of the States, had brought the work of restoration as near complet ion as w a s within the scope o f its authority, aud the nation w a s en­couraged by the prospect o f an early and satisfactory adjustment of all its dif­ficulties. Congress , however , interven­ed, and, refusing to perfect the work so nearly consummated , declined to admit members from the unrepresented States, adopted a series of measures which ar­rested the progress of restoration, frus­trated all that had been so successfully accomplished, and after three years o f agitat ion and strife, has left the country farther from the attainment of union and fraternal feeling than at the incep­t ion o f the Congress ional plan o f recon­struction. It n e e d s n o a r g u m e n t to s h o w that legislation which has produced such baneful consequences should be abroga­ted, or else be made to conform to the g e n u i n e principles, of republican g o v e r n ­ment .

TENURE OF Of FICE ACT, AC.

U n d e r the influence of party passion and sectional prejudice, other acts have been passed not warranted by the Con­stitution. C o n g r e s s has already been m a d e familiar with m y views respect ing the T e n u r e o f Office Bill. Exper i ence has proved that its repeal is demanded by the beat interestsof the country, and that wh i l e i t remains in force, t h e Pres ident ennnot enjoin that rigid accountability o f public officers so essential lo an hon-eBt and efficient execut ion o f the laws. I t s revocation w o u l d enable the E x ­ecut ive D e p a r t m e n t to exercise the pow­er of appointment and removal in accor­dance with the original d e s i g n o f the Federal Constitution.

T h e act of March 2d, 1 8 6 7 , m a k i n g appropriations for tho support o f the army, for the year ending J u n e 3 0 , 1808 , and lor other purposes, contains provi­s ions which interfere with tho P r e s i d e n t s constitutional functions as C o m m a n d e r in-Chief o f the A r m y , and d e n y t h e States of the U n i r n the right to protect themse lves by means o f their o w n mili­tia. T h e s e provis ions should be at once annulled, for whi le the first might , in t imes o f great emergency , seriously em­barrass tho Execut ive in efforts to employ and direct the c o m m o n strength o f t h e nation fur its protection and preservation, the other is contrary to iho express dec­laration, o f the Constitut ion, t h a t , a w e l rpgalatod militia being necessary to the

THE FINANCES.

T h e condit ion o f our finances d e m a n d s the early and earnest consideration of Congress . Compared with t h e g r o w t h of our populat ion, the publio expend i ­tures h a v e reached an amount unprece­dented in our history. T h e population of the U n i t e d Sta les in 1 7 9 0 w a s near­ly four mil l ions o f people. Increas ing each decade about 3 3 per cent , , i t reach­e d in 18C0 thirty-one mill ions, an in ­crease o f 7 0 0 percent , on the population o f 1 7 9 0 . I n 18G9 it is est imated that it will reach 3 8 , 0 0 0 , 0 0 0 , or an increase o f 8G8 per cent, in 7 9 years, T h e an­nual expenditures o f the Federa l Gov­ernment in 1791 w e r e $ 4 , 2 0 0 , 0 0 0 ; in 1820 , $ 1 8 , 2 0 0 , 0 0 0 ; in 1 8 5 0 , $ 4 1 , 0 0 0 , -0 0 0 ; in 1 8 0 0 , $ 0 3 , 0 0 0 , 0 0 0 ; in 1 8 5 5 , nearly $ 1 , 3 0 0 , 0 0 0 , 0 0 0 , and in 1 8 0 9 it is es t imated b y the Secretary o f t h e Trea­sury in his last annual report that they will be $ 3 7 2 , 0 0 0 , 0 0 0 . B y compar ing the public d isbursement of 1859 , as esti­mated , wi th those of 1 7 9 1 , it will be seen that t h e increase of expendi tures s ince the b e g i n n i n g of the g o v e r n m e n t has been 8 , 0 1 8 per centum, whi le the increase of the population for the same period w a s only 8 0 8 per centum. A g a i n , t h e e x p e n s e s o f the g o v e r n m e n t in I 8 6 0 , the year o f peace immediate ly preceding the war, were on ly $ 6 3 , 0 0 0 , 0 0 0 , whi le in 1 8 6 9 , the year of peace, three years after t h e war, i t is est imated t h e y will b e $ 3 7 2 , 0 0 0 , 0 0 0 , an increase o f 4 8 9 per centum, whi le the increase o f population w a s on ly 2 1 per centum for the same period. T h e s e statistics further s h o w that in 1 7 9 4 , t h e annual national e x p e n s e s compared w i t h t h e population w e r e little more than $ 1 per capita, and in 1 8 6 0 but $2 per capita, whi le in 1 8 6 9 t h e y w i l l r each the extravagant sum of $ 9 . 7 8 per capita. I t will be observed that all o f these s ta tements refer t o aud exh ib t the disbursements o f peace periods. I t m a y therefore be o f interest t o compare the expendi tures o f the three war per­iods, t h e war wi th Great Britain, tho M e x i c a n war, and the war 'of the rebel­l ion. In 1 8 1 4 , the annual e x p e n s e s in­c ident t o the war o f 1 8 1 2 reached their h i g h e s t amount , about $ 3 1 , 0 0 0 , 0 0 0 , whi l e our population slightly exceeded 8 , 0 0 0 , 0 0 9 , s h o w i n g an expenditure of only $ 3 . 8 0 per capita. In 1857 , the ex­penditures g r o w i n g out of the w a r w i t h M e x i c o reached $ .55 ,000 ,000 and the population about 2 1 , 0 0 0 , 0 0 0 , g i v i n g only $ 2 . 0 0 per capita for the war e^'oerisoo »><' ihnt yoor. i n 1 0 0 0 , the expenditures called for by the rebellion reached the vast amount of $ 1 , 2 9 0 , 0 0 0 , 0 0 0 , which compared with a population o f 3 4 , 0 0 0 , -0 0 0 , g i v e s § 3 8 20 per captia.

P r o m the 4 th day o f March, 1 7 8 9 , to the 3 0 t h o f June , 1 8 0 1 , the entire expen­ditures o f the government were seven­teen hundred mil l ions o f dollars. D u ring the period w e were e n g a g e d in wars wi th Great Britain and Mexico , and w e r e involved in hostilities with power­ful Indian tribes, Louisiana was purchas­e d from France a t a cost of fifteen mil­l ions of dol lars; Florida was ceded to us b y Spain for five mil l ions; California was acquired from Mexico for fifteen mill ions, and the Territory o f N e w Mex­ico w a s obta ined from T e x a s for the sum o f t e n mill ions. Early in 1 8 6 1 , the war o f the rebellion commenced , and from the first o f Ju ly of that year, to the 3 0 t h of June , 1 8 6 5 . the public expendi­tures reached the enormous a g g r e g a t e o f thirty-three hundred millions. Three years o f peace have intervened, and, du­ring that t ime, the disbursements o f the G o v e r n m e n t have successively been five hundred and t w e n t y millions, three hun­dred and forty-six millions, and three hundred and ninety-three millions. A d ­d i n g to these amounts three hundred and seventy millions estimated as neces­sary for the fiscal year e n d i n g the 3 0 t h of June , 1 8 0 9 , w e obtain a total expen­diture o f s ixteen hundred mill ions o f dol­lars, dur ing the four years immedia te ly succeed ing tho war, or nearly as m u c h as w a s e x p e n d e d during the s e v e n t y - t w o years that preceded the rebell ion, and embraced the extraordinary expendi tures already named. T h e s e startl ing ftcts clearly elucidate the necess i ty of retrench­ment , in all branches o f the public ser­vice. A b u s e s which were tolerated dur­ing the war for the preservation o f the nation, will not be edured by tho people n o w that profound peace prevails .

REOEU'TS AND EXPENDITURES.

T h e receipts from internal revenues a n d cus toms have , during the past three years gradually diminished, and the con­t inuance o f useless and ex travagant e x ­penditures wil l involve u s in national bankruptcy, or else make inevitable an increase o f taxes—already t o o onerous, and in m a n y respects obnox ious , on ac­count o f their inquisitorial character. O n e hundred mill ions annually are ex ­pended for the military force, a large portion of which is the execut ion of l a w s both unnecessary andunconst i tut ion-al. O n e hundred and fifty mil l ions are re­quired each year t o pay tho interest on the publio debt. A n army o f tax-gath-eres imporverishes the nation, and publio a g e n t s — p l a c e d by Congress b e y o n d the control o f the E x e c u t i v e — d i v e r t from their l eg i t imate purpose large suras o f the m o n e y which they collect from the peo­ple in the n a m e o f the Government . J u ­dic ious legis lat ion and prudent e c o n o m y can alone remedy defects and avert evi ls which , i f suffered t o exist , c a n n o l fail to diminish confidence in the publio councils and weaken the attachment and respect of tho people towards the i r political in­st i tut ions. W i t h o u t proper care, the small balance, which, i t is es t imated, will remain in the Treasury at the close of the present fiscal year, will not b e re­alized, and additional mil l ions b e a d d e d to a debt wbioh is now enumerated by

billions. I t is s h o w n b y the able and comprehens ive report o f the Secretary o f the Treasury that the reoeipts for the fiscal year e n d i n g J u n e 8 0 . 1 8 6 8 , were $ 4 0 5 , 6 3 8 , 0 8 3 , and that the expendi tures for the same period were $ 3 7 7 , 3 4 0 , 2 8 4 l eav ing in the Treasury a surplus o f $ 2 ' 8 , 2 9 7 , 7 9 8 . I t is es t imated t h « t the receipts during the present fiscal year e n d i n g J u n e 3 0 t h , 1 8 0 9 , wil l be $ 3 4 1 , -3 9 2 . 8 0 9 , and the expendi tures $ 3 3 0 , -1 5 2 , 4 7 0 , s h o w i n g a small balance of $ 5 , 2 4 0 , 3 9 8 in favor o f the Government . F o r the fiscal year e n d i n g J u n e 3 0 t h , 1 8 7 0 , i t is es t imate that the receipts will a m o u n t to $ 3 2 7 , 0 0 0 , 0 0 0 , and v,he expen­ditures * o $ 3 0 3 , 0 0 0 , 0 0 0 , l eav ing an esti­mated surplus of $ 2 4 , 0 0 0 , 0 0 0 .

PUBLIC INDEBTEDNESS.

I t b e c o m e s proper in this connect ion to m a k e a brief reference to our public indebtedness , which has accumnlated With 8UCll a larming rapidity unci nssittned such colossal proportions. l u 1789 , w h e n tho G o v e r n m e n t c o m m e u c e d op-erations under tho Federal Const i tut ion, it w a s burdened with an indebtedness o f $ 7 5 , 0 0 0 , 0 0 0 created dur ing the war o f the Revo lut ion . T h i s a m o u n t had been reduced to $ 4 4 , 0 0 0 , 0 0 0 w h e n in 1 8 1 2 war w a s declared against Great Britain. T h e three years' s trugg le that fo l lowed largely increased the national ob l igat ions and in 1 8 1 7 , there had attained the sum o f $ 1 2 7 , 0 0 0 , 0 0 0 . W i s e and economical legis lat ion, however , enabled tho G o v ­e r n m e n t t o pay the entire amount with­in a period o f t w e n t y years, and t h e e x ­t ingui shment of the national d e b t filled the land w i t h rejoicing, and w a s one of the g r e a t event s o f Pres ident Jacksou's administration. After its redemption, a large fund remained in t h e treasury, w h i c h w a s d e p o s i t e d ' for safe k e e p i n g w i t h several States o n condit ion t h a t i t should b e returned w h e n required b y publio wants . In 1 8 4 9 , the year after the termination o f the e x p e n s i v e war w i t h Mexico , w e found ourselves involv­ed in a debt o f $ 0 4 , 0 0 0 , 0 0 0 , and this w a s the amount o w e d by the Govern­m e n t in 1 8 6 9 , jus t prior to the outbroke o f the rebell ion. I n the spr ing of 1 8 6 1 , our civil war c o m m e n c e d . E a c h year of its cont inuance m a d e an e n o r m o u s ad­dit ion to the debt, and w h e n in the spr ing o f 1 8 6 5 the nation successfully e m e r g e d from the conflict, the obl igat ion of the G o v e r n m e n t had reached the i m ­m e n s e sum of $ 2 , 8 7 3 , 0 9 2 , 9 0 9 . T h e Secretary of the Treasury s h o w s that o n the first day o f N o v e m b e r , 1 8 6 7 , this a m o u n t had been reduced t o $ 2 , 4 9 1 , -5 4 0 , 4 5 0 , but at the s a m e t ime his report exhib i t s an increase dur ing the past year o f $ 3 5 , 0 2 5 , 1 0 2 . for the debt on the'first day o f N o v e m b e r last is s tated t o have been $ 2 , 5 2 7 , 1 2 9 , 5 5 2 , I t is es t imated by the Secretary that the return for the past month will add to our liabilities t h e further sum of $ 1 1 , 0 0 0 , 0 0 0 , m a k i n g a total increase d u r i n g thirteen m o n t h s o f $ 4 6 , 5 0 0 , 0 0 0 .

In m y message to Congress o f D e c e m ­ber 4 , 1 8 0 5 . it was sugges t ed that a pol­ios should be dev ised which wi thout b e i n g oppress ive t o the people, w o u l d at once beg in to affect a reduct ion o f the debt , and i f persisted in, d ischarge i t fully w i th in a definite number o f years . T h e Secretary o f the Treasury forcibly r e c o m m e n d s legislation o f th i s character and just ly u r g e s that the longer it is deterred the m o r e difficult m u s t b e c o m e its accompl i shments . W e should fol low the wise precedents established in 1 7 8 9 and 1 8 1 6 , and wi thout further delay make provisions for the p a y m e n t of our obl igat ions at a s early a period as m a y bo practicable. T h e fruits of their labors should be enjoyed b y our cit izens, rather than used t o build up a n d sustained m o n e y e d monopol ies , in our o w n and other lands, in our foreign debt—already computed by the Secretary of the Treas­ury at $ 8 5 0 , 0 0 0 , 0 0 0 . Cit izens of for­e i g n countries rece ive interest upon a large portion o f our securities, and Amer ican tax-payers are m a d e t o con­tribute large s u m s for their support. T h e idea that such a debt is to become permanent should b e a t all t imes discarded as i n v o l v i n g taxation too h e a v y to be borne, and p a y m e n t in e v e r y s ixteen years , a t l b e present rate o f interest, o f an a m o u n t equal t o the original sum. T h i s vast -debt, i f permitted to become permanent and increasing, must eventu­ally b e gathered into the hands of a l e w and enable them to exert a dangerous and control l ing power in the affairs o f t h e Government . T h e borrowers would b e c o m e servants to the lenders masters o f the people. W e n o w pride ourselves u p o n hav ing g i v e n freedom to four mil­l ions of the colored race. I t wi l l then b e our s h a m e that forty mil l ions o f peo­ple, by their o w n toleration of usupation and profligacy, have suffered themselve-t to b e c o m e enslaved, and merely ex ­c h a n g e d s lave-owners for n e w task-mas­ters in the shape o f bondholers and tax gatherers. B e s i d e s permanent debts pertain to monarchial g o v e r n m e n t s , and t e n d i n g to monopol ies , perpetuit ies and class legis lat ion, are totally irreconcilable w i t h free institutions. Introduced into our republican sys tem, they would grad­ually, but surely, s a p i ts foundations, eventfully subvert our governmenta l fa­bric, and erect upon its ruins a m o n e y e d aristocraey. I t i s our sacred duty to transmit unimpaired to posterity tho b less ings of l iberty w h i c h w e r e bequeath­ed t o us by our example , teach those w h o are to follow us carefully to a v o i d the dangers which threaten a free and inde­pendent people .

RATES OP INTEREST.

Var ious plans h a v e been proposed for the p a y m e n t o f tho publio dobt. H o w ­ever they may have varied as to the t ime and m o d e iu which it should b e redeemed, there s e e m s to be a general concurrence as t o the propriety and j u s t n e s s o f a reduc­tion in the present rates of interest. T h o Secretary o f the Treasury, in his report, r e c o m m e n d s five per cent . Con­gress, in a bill passed prior to adjourn­m e n t o n the 2 7 t h . o f J u l y last, agreed upon four, and four and a half per c e t i t , whi l e b y many, three per cent, has boon held to be an amply sufficient return for the investment . T h o general impres­s ion as t o Ihe exhorbi tancy o f t h e exist­ing rato of intorest, has led to an inquiry iu the publio m i n d respect ing the consid­eration wbioh t h e G o v e r n m e n t has ac­tually received for its bonds, and the

conclusion is b e c o m i n g prevalent that the a m o u n t which it obtained was, iu real m o n e y , 3 0 or 4 0 per cent, less than the obl igat ions which it rece ived in re­turn. I t can not b e den ied that wa are p a y i n g an extravagant per centage for the u s e of the m o n e y borrowed, which w a s paper currency, great ly depreciated b e l o w the value o f coin. . T h i s fact is m a d e apparent w h e n w o cons ider that tho bondholders receive from t h e Treas ury upon each dollar they o w n in gov­e r n m e n t securities s i x per cent, in gold , w h i c h is nearly or quite equal to nine per • cent, in currency; that t h e bonds arc then converted into capital for tho national banks, upon which those insti­tut ions i ssue their circulation, bearing s ix percent , interest, and that they are e x e m p t from taxat ion b y the g o v e r n ­m e n t and the States , and thereby en­hanced t w o per cent, in the hands o f the holders. W e thus h a v e an a g g r e g a t e of s e v e n t e e n pet-taint, which ^figjyjbfl re-o<sived o n each dollar b y t%™ow'nefs o f g o v e r n m e n t securities. A s y s t e m that, produces such results is just ly regarded: as favoring a f e w at the expense of the many, and has led to the further inquiry w h e t h e r our bondholders , in v i e w of the large profits which they have enjoyed, w o u l d themse lves b e averse t o a settle­m e n t o f our indebtedness upon a plan w h i e h would y ie ld them a fair remuner­at ion, and at the s a m e t ime b e jus t t o the taxpayers o f the nation. Our na­tional credit should b e sacredly observed but in m a k i n g provision for our creditors w e should not forget what is duo to the masses of the people . I t may b e assum­ed that the holders o f our securities have already rece ived u p o n their b o n d s a lar­g e r amount than their original invest­ment , measured b y a g o l d standard. U p o n this s ta tement o f facts, i t w o u l d s e e m but jus t and equitable that tho s ix per cent, interest n o w paid b y t h e g o v ­e r n m e n t should be applied to tho reduc­tion o f the principal in semi-annual in­stal lments, which, in s ixteen years and e i g h t months would liquidate the entire national debt. S i x per cent, in go ld would at present rates, be equal to nine per oent. in currency, and equivalent to the p a y m e n t o f the debt o n e and a half t imes in a fraction less than seventeen years , T h i s in connect ion with all the other advantages derived from their in­ves tment , would afford t o t h e public creditors a fair and liberal compensat ion tor the use of their capital, and with this t h e y should b e satisfied. T h e les­sons o f the past admonish the lender that i t is no t wel l t o b e over anx ious in e x a c t i n g fromJ,he borrower rigid c o m ­pliance with the letter of the bond. I f provision b e m a d e for t h e p a y m e n t of the indebtedness of the g o v e r n m e n t in the manner s u g g e s t e d , our nat ion will rapidly recover its w o n t e d prosperity. I t s interests require, that s o m e measure should be taken to release t h e large amount o f capital invested in the securi­t ies o f the g o v e r n m e n t . I t »» n o i n o w mere ly unproduct ive , but in taxation an­nual ly c o n s u m e s $ 1 5 0 , 0 0 0 , 0 0 0 which w o u l d o therwise be used by our euter-prising people in a d d i n g t o the wealth o f t h e nation. Our commerce , which at o n e t ime successfully riva'ed that o f t h e great marit ime powers , has rapidly d iminished, and our industrial interests are in a depressed and langui sh ing con­dit ion. T h e d e v e l o p m e n t of our inex-haqstile resources is checked, and tho fertile fields o f the South are b e c o m i n g w a s t e for want o f means to till them. W i t h the release o f capital, n e w life w o u l d b e infused into the paralyzed ener­g i e s o f our people , and act ivi ty and v ig ­or imparted to every branch o f our in­dustry. Our people need encourage­m e n t in their efforts to recover from the effects o f the rebell ion and o f injudicious legis lat ion, and it should b e the a im o f the G o v e r n m e n t t o stim­ulate t h e m by the prospect o f an early release from the burdens which impedo their prosperity. I f w e cannot take the burdens from their shoulders, w e should at least manifest a wi l l ingness t o help to bear them.

THE CURRENCY AND ITS LAWS.

I n referring t o the condi t ion o f the circulating m e d i u m , I shall merely reit­erate substantially that portion o f m y last annual m e s s a g e w h i c h relates to that subject.

T h e proportion, w h i c h the currency o f any country should bear to t h e who le value o f the annual produce circulated by its means , is a quest ion upon which political economis t s have no t agreed. N o r can it be controlled by legis lat ion, but must b e left to the irrevocable l a w s which e v e r y w h e r e regulate c o m m e r c e and trade. T h e circulating m e d i u m will ever irresistibly f low l o those points w h e r e it is iu t b e greatest d e m a n d . T h e law of d e m a n d and supply is as unerring as that which regulates the t ides o f the ocean, and indeed currency, like the tides, has its ebbs and flows throughout the commercial world. A t the b e g i n ­n i n g o f the rebellion, the bank note cir­culat ion o f the country amounted to no t much more than t w o hundred mill ions of dollars. N o w the circulation of N a ­tional B a n k n o t e s and those k n o w n as legal tenders is nearly s e v e n hundred mill ions. W h i l e i t is urged by s o m e that this amount should be increased, others contend that a dec ided reduction i s absolutely essential t o the best inter­ests of the country. In v i e w of these diverse opinions , i t m a y b e well t o as­certain the real value o f our paper issues w h e n compared with a metall ic or con­vertible currency. F o r this purpose le t us inquire h o w much go ld and silver could b e purchased b y t h e s e v e n hundred mil l ions o f paper n o w in circulation. Probably not more than haM the amount o f the latter; s h o w i n g that w h e n our paper currency is compared with go ld a n d si lver its commerc ia l va lue i s com­pressed into three hundred and fifty mil­l ions. T h i s s tr iking fact m a k e s it the obv ious duty o f the G o v e r n m e n t as early as may be consistent with the principles o f sound political economy, to take such measures as will enable the holder of its notes , and those o f the national banks, t o conver t t h e m w i t h o u t loss into speoie or its equivalent. A reduct ion o f our paper oiroulating m e d i u m n e e d n o t nec­essarily follow. T h i s , however , w o u l d depend upon tho law of demand and supply, though it should be borne in mind tbat by making legal tender ind

bank n o t e s convert ible in co in or its equivalent , their present specie value in the hands o f their holders w o n l d be e n -chanced one hundred por cent . L e g i s ­lation for the accompl i shment o f a result so desirable is d e m a n d e d by tbe h ighes t publio considerations. T h e Const i tut ion contemplates that the circulating m e d i u m of t h e country shall be uniform in quality a n d value. A t t h e t i m e o f the formation o f that instrument, the country had jus t e m e r g e d from the war o f tho revolut ion, a n d w a s suffering from t h e effects o f a redundant and worth le s s paper currency. T h e s a g e s of that period w e r e anx ious to protect their poster i ty from the evi ls w h i c h t h e y themse lves had experienced. H e n c e , in prov id ing a circulating medi­u m , they conferred upon C o n g r e s s the p o w e r to coin m o n e y and regulate tho value thereof, at t h e s a m e t i m e prohibit­i n g t h e States from m a k i n g a n y t h i n g but g o l d and silver a tender in p a y m e n t of debts, _. T h e anomalous condit ion of, our currency is in s tr ik ing contrast wi th that which w a s originally des igned . Our circulation n o w embrdoes—first, notes o f the national banks, w h i c h aro m a d e receivable for all dues t o the g o v ­ernment , e x c l u d i n g imports , and b y all its creditors, e x c e p t i n g in p a y m e n t o f in­terest u p o n its b o n d s and t h e securities t h e m s e l v e s ; second , legal tender notes issued by the U n i t e d S lates , and which t h e l a w requires shall bo rece ived as well in p a y m e n t o f all debts b e t w e e n cit izens as of all g o v e r n m e n t dues , e x c e p t i n g im­posts ; and third, g o l d and si lver coin. B y the operations o f o u : present sys tem of finance, however , the metallic curren­cy , w h e n col lected, is reserved o n l y for o n e class of g o v e r n m e n t creditors, w h o ho ld ing i ts bonds , semi-annually rece ive their interest in co in from tbe Nat iona l Treasury. T h e r e is no reason w h i c h will b e accepted as satisfactory b y tho people , w b y t h o s e w h o defend us o n the land and protect us on the sea, tho pensioner upon t h e grati tude o l the nation bearing tho scars and w o u n d s received whi le in its service, the publio servants in t h e various depar tments o f the g o v ­ernment , the farmer w h o supplies the soldiers o f the a r m y and the sailors o f the navy , the artisan w h o toils in the na­tion's work shops; or the mechanics and laborers w h o build its* edifices and con­struct its forts and vessels o f war, should in p a y m e n t o f jus t and hard earned dues , receive depreciated paper, whi l e another olass o f their countrymen, n o m o r e d e ­serving, are paid in co in o f g o l d and sil ver. Equa l a n d exact just ice requires that all t h e creditors o f t h e G o v e r n m e n t should be paid in a currency possess ing a uniform value. T h i s can o n l y b e ac­compl i shed by the restoration o f the cur­rency t o the standard establ ished b y the constitution, and b y this m e a n s w e w o u l d remove a discrimination w h i c h may, if it has n o t already d o n e so , create a prej­udice that may b e c o m e deep-rooted and wide-spread, and impair the national

nvm-V.t- T i m fpiisibility o f mol-t"£j nm-currency correspond with the const i tu­tional standard m a y b e seen b y reference to a f ew facts der ived from our comrner cial statistics.

T h e a g g r e g a t e product o f precious metals in the U n i t e d States , from 1 8 4 9 t o 1 8 6 7 , a m o u n t e d t o $ 1 , 1 0 4 , 0 0 0 , 0 0 0 , whi l e for the s a m e period the ne t e x ­ports o f specie were $ 7 4 1 , 0 0 0 , 0 0 0 T h i s s h o w s an e x c e s s o f product over net exports of $ 4 3 3 , 0 0 0 , 0 0 0 . T h e r e are in t h e Treasury, $ 1 0 3 , 4 0 7 , 9 8 5 in c o i n ; in circulation in t h e States o n the Pac i ­fic coast about $ 4 0 , 0 0 0 , 0 0 0 , and a f e w mill ione in the national and other banks; in all less than $ 1 6 0 , 0 0 0 , 0 0 0 . T a k i n g in to cons iderat ion the specie in t h e coun­try prior to 1 8 4 9 , and that produced since 1 8 6 7 , and w e h a v e more than £ 3 0 0 , 0 0 0 , 0 0 0 n o t accounted for b y ex­portation or by the returns o f the Treas ­ury, and therefore mos t probably remain­i n g in the country.

T h e s e are important faels, and show h o w complete ly the inferior currency wil l supersede the better, forcing it from circulation a m o n g the masses, and caus­i n g i t t o be exported as a mere article of trade, t o add t o the m o n e y capital o f foreign lands. T h e y s h o w the necess i ty o f retiring our paper m o n e y , that the return o f g o l d and si lver to the a v e n u e of trade may be invi ted , and a d e m a n d cre­ated w h i c h will cause the retention at h o m e o f at least s o much of the produc­t i o n s o f our rich and inexhaust ible gold-bear ing fields as m a y b e sulficient for purposes o f circulation. It is unreason­able to expect a return o f a sound cur­rency s o l o n g a s the G o v e r n m e n t and banks , by cont inu ing to issue irredeem­able note- , fill t h e channels o f circulation with depreciated paper.

N o t w i t h s t a n d i n g a _ c o i n a g e b y our mints, s ince 1 8 4 9 , o f e i g h t hundred and seventy-four mil l ions of dollars, the peo­ple are n o w strangers t o the currency which w a s d e s i g n e d for their use and benefit, and spec imens o f the precious metals, bear ing t h e national device , are seldom seen, e x c e p t when purchased! to gratify th'e interest exc i t ed b y their n o v ­elty. I f depreciated paper is t o be Con­tinued as the p e r m a n e n t currency o f the country, and all our coin i s to b e c o m e a mere article o f traffic and speculat ion, to tho e n h a n c e m e n t in price o f all that is indispensible to the comfort o f the peo­ple, i t would b e wise e c o n o m y to abolish our mint, thus s a v i n g the nat ion the care and e x p e n s e incident to such estab­l ishments, and let all our precious metals be exported in bullion.

T h e t i m e has c o m e , h o w e v e r , w h e n tbe G o v e r n m e n t and na t iona l b a n k s s h o u l d b e r e q u i r e d t o tako t h e m o s t efficient s t e p s a n d m a k e all n e c e s s a r y a r r a n g e m e n t s for a r e s u m p t i o n o f pre-cie p a y m e n t s . L e t speoie p a y m e n t s o n c e b e i n a u g u r a t e d b y t h e G o v e r n ­m e n t an1 , b a n k s , and the v a l u e o f the paper c i rcu la t ion w o u l d d i r e c t l y ap­p r o x i m a t e a s p e o i e s t a n d a r d . S p e c i e p a y m e n t s h a v i n g b e e n r e s u m e d b y t h e G o v e r n m e r ' a n d b a n k s , all n o t e s or bi l l s o f pn| , r i s s u e d b y e i t h e r o f « l e s s d e n o m i n a t i o n than t w e n t y do l lars shou ld by l a w bo e x c l u d e d from c i r c u l a t i o n , s o t h a t the p e o p l e m a y h a v e t h o b e n e ­fit and c o n v e n i e n c e o f a g o l d a n d sil­v e r c u r r e n c y , w h i c h in all the ir busi­n e s s t r a n s a c t i o n s w i l l b o u n i f o r m in va lue a t h o m e and Abroad, E v e r y mnn of p r o p e r t y o r i n d t n t r y , e v e r y man w h o d e s i r e s t o p r e w r v e w h a t h e hori« o s t l y p o s e s s e s , or t o o b t a i n w h i t b

can h o n e s t l y earn , lias a*direct i n t e r e s t in m a i n t a i n i n g a safe c i r c u l a t i n g m e ­d i u m — s u c h m e d i u m BB shall bo rual and s u b s t a n t i a l , n o t l iable t o v i b r a t e w i t h op in ions , n o t subjac t l o be b l o w n up or b l o w n d o w n b y the breath of s p e c u l a t i o n , b u t t o be m a d e s t a p l e -and s e c u r e . A d i sordered c u r r e n c y is o n e of t h e g r e a t e s t pol ical ev i l s . It under-minoB t h e v i r tues neces sary for t b e s u p ­port o f tho social s y s t e m , anil encoura­g e s p r o p e n s i t i e s d e s t r u c t i v e o f i t s hap-pine . - s j i t Wars a g a i n s t i n d u s t r y , fru­g a l i t y and e o o n o n i y , and it fos ters t h e evi l sp ir i t s of p x i r a v a g n n o j nnd s p e c u ­l a t i o n . I t has been as ser ted b y o n e of o u r profoundest , a n d m o s t g i l t e d saatas-men t h a t i " O f all other c o n t r i v a n c e s lor c h e a t i n g the l a b o r i n g chiMea of m a n k i n d , n o t h i n g has been d o n e m o r e effectual than t h a t w h i c h d e l u d e s t h e m with p a p e r m o n e y . " T h i s M the m o s t effectual of i n v e n t i o n s t o l'eriiltae t h e r ich m a n ' s fields b y t h e s w e a t o f the p o o r man's b r o w . O r d i n a r y t y a n n i u s '•ear l i g h t l y on the h:ippines« uf the m a s s of t h e c o i n m u n i i y , w m | « i w , l with a fraudulent curri-nuy and the robber ie s c o m m i t t e d b y d e p r e c i a t e d paper . O u r o w n h i s t o r y lias r e c o r d e d , tor our in­s t r u c t i o n , e n o u g h and m o r e than e n o u g h ot tho d e m o r a l i z i n g t e n d e n c y , t h e in jus t i ce and t h e to l erab le oppres ­s i o n on t h e v i r t u o u s and we l l d i s p o n e d , o f a d e g r a d e d p a p e r currency author­ized b y l a w or in any w a y c o u n t e n a n c ­ed b y g o v e r n m e n t . I t is o n e o f the m o s t success fu l d e v i c e s in limed ol p e n c e or w a r ; o f e x p a n s i o n * or revo lu­tion-!, t o a c c o m p l i s h the transfer ol nil t h e p r e c i o u s m e t a l s from tho g r e a t m a s s of t h e peop le i n t o t h e h a n d s of the f e w , w h e r e t h e y are. hoar l e d in s e c r e t p l a c e s or d e p o s i t e d n n d e r b o l t s and bars , w h i l e tho p e o p l e are left to en­d u r e all t h e i n c o n v e n i e n c e , sacr i f ice and demora l i za t ion r e s u l t i n g from t h e u s e o f d o p i c u i a t e d and w o r t h l e s s paper .

DEPABTIIE.XT REPOUTS.

T h e Secretary o f the Inter ior , in his r e p o r t , g i v e s vnltrihlu in format ion in reference to t h e i n t e r e s t s conf ided to t h e s u p e r v i s i o n o f h is D e p a r t m e n t , and r e v i e w s t h o o p e r a t i o n s o f t h e Land of tice, P e n s i o n office, P a t e n t offiee, and tho Indian B u r e a u . D u r i n g t h e fiscal y e a r e n d i n g J u n e 30 , 1 8 0 8 , 6 , 0 5 5 , 7 0 0 a c r e s o f publ ic land were d i s p o s e d of.

T h e ent i re ci ish rece ip t s o f t h e G e n ­eral L a n d office for the s a m e period were ^1,032,74-3 , bid ' g g r e a t e r by $ 2 8 4 , 8 9 2 than tho a m o u n t real ized from the s a m e period d u r i n g the p r e v i o u s year . T h e entr ies u n d e r the. h nnestead law c o v e r t w o mi l l i ons t h r e e h u n d r e d and t w e n t y - e i g h t t h o u s a n d n ine h u n ­dred and t w e n t y - t h r o e a c r e s , n u s ' l y one- fourth o f w h i c h w a s taken under the a c t o f J u n e 2 1 s t , 1 8 0 8 , w h i c h ap­pl ies o n l y t o t h e S t a t e s o l A l a b a m a , Miss i s s ippi , L o u i s i a n a , A i k a n s a s and F l o r i d a .

On the 3 0 t h of J u n e , 1 8 S 8 , cno hun'-dren and s i x t y n i n e thousand s ix hun-divil a im torty-Uiroe nairn'S w o r e on pension rolls , and duriiiiT the y e a r e n d ­ing oh t h a t d a y , tho total a m o u n t paid for p e n s i o n s , i n c l u d i n g t h e e x p e n s e s o f d i s b u r s e m e n t s , w e e $ 2 4 , 0 1 0 , 9 8 2 , b e i n g § 5 , 3 0 1 , 0 6 5 g r e a t e r than that e x p e n d e d for tho s a m e p u r p o s e d u r i n g t h e pie-c e d i n g y e a r .

D u r i n g the y e a r 6'nding On t h e 30th of S e p t e m b e r lust , the e x p e n s e * of the P a t e n t office cxeeiU'd t h e rece ip t s b y f l . 2 0 0 , 0 0 0 , and inc luding r e i s s u e s and d e s i g n s , fourteen tl ousat id, o n e hun­d r e d and fifty-three p a t e n t s w e r e is­sue.! .

ISDIAN AFFAtns.

T r . at ies w i t h v n r i o m Indian t r ibes h i v e been c o n c l u d e d , and will bo s u b ­m i t t e d to t h e S e n a t e for i t s cons idera­t ion and a c t i o n . 1 cord ia l ly sanc t ion the s t ipu la t ion w h i c h p r o v i d e s for re­s e r v i n g l a n d s for t h o v a r i o u s t r ibes , w h e r e t h e y m a y b e e n c o u r a g e d t o a b a n d o n the ir n o m a d i c hab i t s , and en­g a g e in agr icu l tura l and industr ia l pur­s u i t s . T h e p o l i c y , I n a u g u r a t e d m a n y y e a r s s ince , has m e t w i t h s igna l s u c ­cess , w h e n e v e r i t has been p u r s u e d in g o o d faith and w i t h b e c o m i n g liberal­i t y by the U n i t e d S ta te s . T h e n e c e s ­s i ty for e x t e n d i n g it as far a s practica­ble in our r e l a t i o n s w i t h t h e abor ig ina l populat ion is g r e a t e r n o w than at any p r e c e d i n g p e r i o d . W h i l s t w e furnish s u b s i s t e n c e and ins t ruc t ion t o t h e In­dians , and g u a r a n t e e t h e u n d i s t u r b e d e n j o y m e n t o f t h e i r trca'ty r i g h t s , w e s h o u l d hab i tua l ly rn*?st t'i'p'on lh6'fai th­ful obscrvai ico of the ir a g r e e m e n t t o remain wi th in the ir respect ive reserva­t ions . Thi s is tho on ly m o d e b y w h i c h co l l i s ions wi th other t i i b o s and w i t h tho w h i l e s can bo a v o i d e d , and the s a f e t y o f our frontier s e t t l e m e n t s se­cured.

TI1K NATIO'NAT, ftlomYAY.

T h o c o m p a n i e s c o n s t r u c t i n g t h e rail­w a y from O m a h a to S a c r a m e n t o , hnvo been m o s t e n e r g e t i c a l l y e n g a g e d in p r o s e c u t i n g the w o r k , and ft i s be l i ev­ed t h a t the lino will be c o m p l e t e d be­fore t h e e x p i r a t i o n o f tho n e x t fiscal year . T h e s i s per cent , b o n d s i s sued to these cornftnnU'S n i n n u n ' e d , on t h e fifth inst . , t o $ 4 4 , 8 3 7 , 0 0 0 , and addi t ion­al w o r k lmd b e e n performed, t o t h e e x t e n t o f fc3,2'00,000. T h e S e c r e t a r y of t h e I n t e r i o r , in A u g u s t l a s t , i n v i t e d m y a t t e n t i o n t o tho r e p o r t o f a g o v e r n ­m e n t d i r e c t o r o f t l .o U n i o n Pacif ic Rai l road C o m p a n y , w h o had boon spe­c ia l ly i n s t r u c t e d t o e x a m i n e tho loca­t ion , cons truct ion and e q u i p m e n t o f the ir road . I submi t t ed , tor tho opin­ion o f the A t t o r n e y G e n e r a l , certa in ques t ions in r e g a r d t o t h e author i ty o f tho E x e c u t i v e , w h i c h a r o s e u p o n "this r e p o r t and t h o s e w h i c h had from t i m e t o t i m e b e e n p r e s e n t e d b y t h o c o m m i s ­s i o n e r s a p p o i n t e d t o i n s p e c t each sue-cess lvn session o f t h e w o r k . A f t e r carefu l ly c o n s i d e r i n g t h e law o f t h e oase , ho affirmed the r i g h t Of t h e E x e c ­u t i v e to o r d e r , i f n e c e s s a r y , a t h o r o u g h rev i s ion o f t h o en t i re road . C o m m i s ­s ioners w o r e t h e r e u p o n a p p o i n t e d . t o e x a m i n o t h i s nnd other l i n e s , nm? h a v e recontly s u b m i t t e d a s t a t e m e n t o f the ir i n v e s t i g a t i o n s o f w h i c h t h e r e p o r t o f t h o S e c r e t a r y o f the Interior furn i shes speaif io in format ion .

TUB ARMT. ,

T h e report o f t h e S e o r o t a r y o f W a r c o n t a i n s Informat ion of intermit uud lmfjortnnoe r e s p o q t l n g -(.he f a v u r a l b n . m u » <6f t h e W a r D e p i r t m e t i t and t b e

4 8 , 0 0 0 ^ f l t is the o p i n i o n o f t b * l t a r y o f w s r t h a t w i t h i n t h e n« idN»»M a c o n s i d e r a b l e d i m i n u t i o n o f t b e infant­ry force may b e i n n d e w i t h o u t de tr i ­m e n t to the" interes t s o f t h o c o u n t r y a n d in v i e w of t h e g r e a t e t p e n a e a a t ­t e n d i n g t b e m i l i t a r y p e a o « e s t a b l i s h ­ment and t h e a b s o l u t e n e c e s s i t y o f r«. t r e n c h m e n t w h e r e v e r i t c a n b o a p p l i e d , i t is h o p e d t h a t C o n g r e s s wi l l Banotionl t h e r e d u c t i o n w h i c h his r e p o r t r e c o m ­m e n d s . W h i l a in 1 8 8 0 W , 8 0 Q m e n o o s t the n a t i o n $lf l ,472,OOQ; t h e tttm o f $ 6 6 , 0 8 2 , 0 0 0 i s e x l i m a t e d M o e o w s a -ry for t h e s u p p o r t o f t h < w r m y - , d u r j n g the fiscal y e a r ending; J u n o 8 0 , )Ql0i T h e e s t i m a t e s o f t h e W a r D e p a r t m e n t for t h e t w o fiUcal yoara w e r e — f o r I |j(W, ^ 3 3 , 8 1 4 , 4 6 1 , and for 1 3 6 8 , #95,9O&,00O; T h e actual e x p e n d i t u r e s d i n i n g , the s a m e per iod* w e r e , r e s p e c t i v e l y , ( 9 5 t -22.4 ,415 and $ 1 5 3 , 2 4 6 , 0 4 8 . T.ho e e i i ' m a t e s u b m i t t e d i n D e c e m b e r l a s t f o * t h o fiscal y e a r e n d i n g J u n o J u n o 1 0 , 1 9 6 0 , was * 7 7 , l i i 4 , 7 0 7 . T h e ©xpaodU l u r e s for the f l ist q u a r t e r , e n d i n g 8Qlh o f S e p t e m b e r I U M , w e r e t 2 , 7 , ? > 9 , l l t •» nnd the S e c r e t a r y o f the T r e a s u r y giyoB* 1 6 6 , 0 0 0 , 0 0 0 a s t h e a m o u n t w h i c h wj l l probab ly be requ ired d u r i n g t h o re , manning, three-quarters , i f t h e r e a b o u l d b V i i o - reduct ion o f the a r m y , m a k i n g i t s rtggreguo c o s t for t h e visar conaja-' erstbly in e x c e s s — $ 0 3 , 0 0 0 , 0 0 0 . T h e dif ference b e t w e e n t h e esliuvaic-s a n d e x p e n d i t u r e s far the' throe fiscal years* w h i c h h a v e boon n a m e d , i s t h u s s h o w * t o b e $ 1 7 5 , 5 4 5 , 3 4 8 fer-4liw s i n g l e b r a n c h of tho p u b l i c s e r v i c e .

THE NA.VT. .'

T h e report o f t h e S e c r e t a r y o f t h e N a v y e x h i b i t s t h e o p e r a t i o n s o f - t h u t d e p a r t m e n t and of t h o n a v y duri irg t h e year . C o n s i d e r a b l e r e d u c t i o n o f t h » force has been ef fected. T h e r e are for­t y - t w o v e s s e l s c a r r y i n g four h u n d r e d a n d e l even g u n s in tho s i x s q u a d r o n s which are e s t a b l i s h e d in different parte o f tho w o r l d . T l u v ? o f th'ese v e s s e l * are re turn ing t o t h e U n i t e d S t a t e s , n n d four are used for utore s h i p s , l e a v i n g t h e actual c r u i s i n g force t h i r t y fivo v e s ­s e l s , c a r r y i n g t i m e hundroi t and fifty-s i x g u n s . Tlid to ia l nttmbor d( vcsftel* in t h e navy is t w o h u n d r e d and nt, m o u n t i n g s e v e n t e e n h u n d r e d and th ir ­t y - s i x g u n s . E i g h t y - > n u vessel.s of ev ­ery descr ip t ion are in the and Hi'ined w i t h s i x h u n d r e d a n d t h i r t y s i x gmiP; T h e n u m b e r of enl i s ted m e n in tho ser­v i ce , i n c l u d i n g a p p r e n t i c e s , h a s b e e n reduced t o 8 , 5 0 0 . An i n c r e a s e o f na­v y yard facilities i* r e c o m m e n d e d «f» a measure which wil l , in tl iu e v e n t o t war, b e p r o m o t i v e of e c o n o m y and se ­c u r i t y . A m o i e t h o r o u g h and s y s t e m * a l io s u r v e y o f the N o r t h Pncif io o c e a n is n d \ i ? e d , in v i e w of o u r r e c e n t acqui ­s i t ions , our (.•xpanditig c o m m e r c e and tho i n c r e a s i n g i n t e r c o u r s e b e t w e e n t h e Paci f ic State* .

T h e naval pon>ion fund, w h i c h c o n ­s i s t s of a n i o i t y ol tho p r o c e e d s ' o t p r i z e s , c a p t u r e d d u r i n g the wai1, a m o u n t s t o 8 1 4 , 0 0 0 , 0 0 0 . E x c e p t i o n is tjiken t o t h o net o f tho 2 8 d of J u l y last, which reduced the i n t e r e s t on t h e fund l o a n e d t o the g o v e r n m e n t b y t h e Secre tary as t r u s t e e s to 3 p e r cent . , in­s t e a d o f 0 pfer cent . , w h i c h w a s or ig i -na l ly s t i p u l a t e d , w h e n the i n v e s t m e n t w a s made . A n a m e n d m e n t o f t h e pen­s i o n l a w s is s u g g e s t e d to r e m e d y o m i s ­s i o n s and pffrcts in e x i s t i n g enaclin>ii)ts. T h e e x p e n d i t u r e s of* t h o d e p a r t m e n t , d u r i n g t h e la s t fiscal y e a r , w e r e $ 2 0 , - ' 1 2 0 , 3 9 1 , ami vhu e s t i m a t e s tor tho c o m ­i n g year a m o u n t t o $ 2 0 , 9 9 3 , 4 1 1 .

POST OFFICE AFFAIB9.

T h o P o s t m a s t e r G e n e r a l ' s r e p o r l furnishes a full and c lear e x h i b i t o f t h e oporat ion and c o n d i t i o n o f t h o p o s t n l s e r v i c e . T h o ordinary pos ta l r e v e n u e e n d i n g J u n e 3 0 , 1868 , w a s 1 1 6 , 2 9 2 , 6 0 0 , and the total e x p e n d i t u r e * , e m b r a c i n g all tho serv ice for w h i c h spec ia l a p p r o ­pr ia t ions have b e e n m a d e b y C o n g r e s s , a m o u n t e d to $ 2 2 7 , 7 3 0 , 5 9 2 , s h o w i n g an e x c e s s o f e x p e n d i t u r e s o f $ 6 , 4 3 7 , 0 * 1 . D e d u c t i n g from' t h o e x p e n d i t u r e s t h e s u m of $ 1 , 8 9 6 , 6 2 5 , t h o a m o u n t o f ap-1

propr ia t ions for o c e a u s t e a m s h i p s a n d o ther specia l serv ice , t h e e x c e s s uf e x ­p e n d i t u r e s w a s §4 ,541 ,5 f f0 , B y u s i n g an u n e x p e n d e d b a l a n c e in the T/ieasitrV of § 3 , 8 0 0 , 0 0 0 , the actual s u m for w h i c h a special apropr ia t ion i s required t o m o o t t h e deficiency, is 8 7 4 1 , 4 0 « . T h e c a u s e s w h i c h p r o d u c e d t h i s l a r g e e x ­c e s s of e x p e n d i t u r e over r e v e n u e , w e r e t h e res torat ion o f s e r v i c e in tho lato in­s u r g e n t S t a t e s , and t h e p u t t i n g i n t o t h e o p e r a t i o n of n e w s e r v i c e , e s t a b l i s h e d b y ac t s o f Congres-s , w h i c h a m o u n t e d , w i th in t h e las t t w o y e a r s nnd a half, t o about. 4 8 , 7 0 9 m i l e s — e q u a l t o m o r e t h a n one-third of the w h o l e a m o u n t o f t h o s e r v i c e at tho c l o s e o f t h e w a r .

N o w posta l c o n v e n t i o n s w i t h G r e a t B r i t a i n , F o r t h G e i m a n y , B e l g i u m , t h e N e t h e r l a n d s , S w i t z e r l a n d a n d I ta ly re­s p e c t i v e l y h a v e been c a r r i e d i n t o ef­fect t inder t h e prov i s ions . I m p o r t a n t i m p r o v e m e n t s h a v e r e s u l t e d in r e d u c e d rates of in ternat iona l p o s t a g e , a n d e n ­l a r g e d mai l faci l i t ies w i t h E u r o p e a n countr ies . T h e c o s t o f t h e U n i t e d S t a t e s t r a n s At lant io O c e a n mai l ser -vice.simae J a n u a r y 1st , 1 8 6 8 , h a s b e e n l arge ly l e s s e n e d u n d e r t h e o p e r a t i o n s o f t h e s e n e w c o n v e n t i o n s , a r e d u c t i o n o f o v e r one-ha l f h a v i n g been ef fected under the n e w a r r a n g e m e n t s for o c e a n mail s t e a m s h i p service, ' w h i c h w e n t i n t o effect on t h a t d a t e . T h o a t t e n t i o n o f C o n g r e s s is i n v i t e d t o t h e pract ica l s u g ­g e s t i o n s and r e c o m m e n d a t i o n s m a d e in h i s report b y t h o P o s t m a s t e r G e n e r a l .

FOREIGN- RKtATIONS.

N o i m p o r t a n t q u e s t i o n h a s o c c u r r e d d u r i n g the last year in o u r a c c u s t o m e d cordial and fr iendly i n t e r c o u r s e with C o s t a R i c a , G n a t a m a l a , H o n d u r a s , 8 a n S a l v a d o r , F r a n c o , A u s t r i a , B e l g i u m , S w i t z e r l a n d , P o r t u g a l , t h e "Netherlands , D e n m a r k , S w e f d e n , N o r w a y , f i o m e , Greece , T u r k e y , P e r s i a , E g y p t , S iber ia , M o r o c c o , Tr ipo l i , T u n i s , M u s c a t , S i a m , B o r n e o , and M a d a g a s c a r . C o r d i a l re­la t ions h a v e a l so b e e n m a i n t a i n e d w i t h the A r g e n t i n e and Orienta l R e p u b ­l ics .

FAnAGUAYAN AND BRAZILIAN AFTAIIW.

T h e e x p r e s s e d wi sh o f C o n g r e s s t h a t our nat iona l g o o d offices m i g h t bo tori... derod t o t h o s e R e p u b l i c s , and a l so id ' Brazi l and P a r a g u a y , for b r i n g i n g t o an e n d t h e c a l a m i t o u s w a r w h i c h Ira* s o I o n ? been r a g i n g in t h e val'le^ o f t h e •La P l a t a , h?<« b e e n ass idivonJly c o m ­p l i ed w i t h and k i n d l y a c k n o w l e d g e d b y nil tho b e l i g c r o n l s . T h a t i m p o r t a n t n e g o t i a t i o n , h o w e v e r , h a s t h u s far b e e n • w i t h o u t r e s u l t . Char le s A . W a s h , b u r n e , late U n i t e d S t a t e e Minister t o P a r a g u a y , h a v i n g roKigned, and b e i n g d e s i r o u s t o return t o tho U n i t e d S t o l e n , t h e I ioar A d m i r a l c o m m a n d i n g t h e Sout l i • A t l a n t i c S q e a d r o n , w a s ear ly d i -.Taoted t o s e n d a sh ip o f -wnr t o A s u n c ­i o n , t h e o a p i t a l o f P a r a g u a y , t o r e c e i v e