PUBLIC DOCUMENTS. 



727 



rights of freemen : and I have, at the same time, offer- 

 ed to the several states situated within the tropics, or 

 baring colonies there, to negotiate with them, subject 

 to the advice and consent of the Senate, to favor the 

 voluntary emigration of persons of that class to their 

 respective territories, upon conditions which shall be 

 equal, just, and humane. Liberia and Hayti are, as 

 yet, the only countries to which colonists of African 

 descent from here could go with certainty of being re- 

 ceived and adopted as citizens ; and I regret to say 

 such persons, contemplating colonization, do not seem 

 so willing to migrate to those countries as to some 

 others, nor so willing as I think their interest demands. 

 I believe, however, opinion among them in this respect 

 is improving ; and that ere long there will be an aug- 

 mented and considerable migration to both these coun- 

 tries from the United States. 



The new commercial treaty between the United 

 States and the Sultan of Turkey has been carried into 

 execution. 



A commercial and consular treaty has been negoti- 

 ated, subject to the Senate's consent, with Liberia; 

 and a similar negotiation is now pending with the 

 Republic of Hayti. A considerable improvement of 

 the national commerce is expected to result from these 

 measures. 



Our relations with Great Britain, France, Spain, Por- 

 tugal, Russia, Prussia, Denmark, Sweden, Austria, the 

 Netherlands, Italy, Rome, and the other European 

 states remain undisturbed. Very favorable relations 

 also continue to be maintained with Turkey, Morocco, 

 China, and Japan. 



During the last year there has not only been no 

 change of our previous relations with the Independent 

 States of our own continent, but more friendly senti- 

 ments than have heretofore existed are believed to be 

 entertained by these neighbors, whose safety and prog- 

 ress are so intimately connected with our own. This 

 statement especially applies to Mexico, Nicaragua, 

 Costa Rica, Honduras, Peru, and Chili. 



The commission under the convention with the Re- 

 public of New Granada closed its session without hav- 

 ing audited and passed upon all the claims which were 

 submitted to it. A proposition is pending to revive 

 the convention, that it may be able to do more complete 

 justice. The joint commission between the United 

 tetates and the Republic of Costa Rica has completed 

 its labors and submitted its report. 



I have favored the project for connecting the United 

 States with Europe by an Atlantic telegraph, and a 

 similar project to extend the telegraph from San Fran- 

 cisco to connect by a Pacific telegraph with the line 

 which is being extended across the Russian Empire. 



The Territories of the United States, with unimpor- 

 tant exceptions, have remained undisturbed by the 

 civil war ; a.nd they are exhibiting such evidence of 

 prosperity as justifies an expectation that some of them 

 will soon be in a condition to be organized as States, 

 and be constitutionally admitted into the Federal 

 Union. 



The immense mineral resources of some of those 

 Territories ought to be developed as rapidly as possible. 

 Every step in that direction would have a tendency to 

 improve the revenues of the Government and diminish 

 the burdens of the people. It is worthy of your seri- 

 ous consideration whether some extraordinary meas- 

 ures to promote that end cannot be adopted. The 

 means which suggests itself as most likely to be effect- 

 ive, is a scientific exploration of the mineral regions 

 in those Territories, with a view to the publication of 

 its results at home and in foreign countries results 

 which cannot fail to be auspicious. 



The condition of the finances will claim your most 

 diligent consideration. The vast expenditures incident 

 to the military and naval operations required for the 

 suppression of the rebellion have been hitherto met 

 with a promptitude and certainty unusual in similar 

 circumstances; and the public credit has been fully 

 maintained. The continuance of the war, however, 

 and the increased disbursements made necessary by 

 the augmented forces now in the field, demand your 



best reflections as to the best modes of providing the 

 necessary revenue, without injury to business, and 

 with the least possible burdens upon labor. 



The suspension of specific payments by the Banks, 

 soon after the commencement of your last session, made 

 large issues of United States notes unavoidable. In 

 no other way could the payment of the troops, and the 

 satisfaction of other just demands, be so economically 

 or so well provided for. The judicious legislation o'f 

 Congress, securing the receivability of these notes for 

 loans and internal duties, and making them a legal ten- 

 der for other debts, has made them a universal curren- 

 cy, and has satisfied partially at least, and for the time, 

 the long felt want of an uniform circulating medium, 

 saving thereby to the people immense sums in dis- 

 counts and exchanges. 



A return to specie payments, however, at the 

 earliest period compatible with due regard to all inter- 

 ests concerned, should ever be kept in view. Fluctua- 

 tions in the value of currency are always injurious, and 

 to reduce these fluctuations to the lowest possible 

 point will always be a leading purpose in wise legisla- 

 tion. Convertibility, prompt and certain convertibil- 

 ity into coin, is generally acknowledged to be ths best 

 and surest safeguard against them ; and it is extreme- 

 ly doubtful whether a circulation of United States 

 notes, payable in coin, and sufficientlv large for the 

 wants of the people, can be permanently, usefully, and 

 safely maintained. 



Is there, then, any other mode in which the neces- 

 sary provision for the public wants can be made, and 

 the'great advantages of a safe and uniform currency 

 secured ? 



I know of none which promises so certain results, 

 and is, at the same time, so unobjectionable as the or- 

 ganization of banking associations, under a general act 

 of Congress, well guarded in its provisions. To such 

 associations the Government might furnish circulating 

 notes, on the security of United States bonds deposited 

 in the Treasury. These notes, prepared under the 

 supervision of proper officers, being uniform in ap- 

 pearance and security, and convertible always into 

 coin, would at once protect labor against the evils of a 

 vicious currency, and facilitate commerce by cheap 

 and safe exchanges. 



A moderate reservation from the interest on the 

 bonds would compensate the United States for the 

 preparation and distribution of the notes, and a gen- 

 eral supervision of the system, and would lighten the 

 burden of that part of the public debt employed as se- 

 curities. The public credit, moreover, would be great- 

 ly improved, and the negotiation of new loans greatly 

 facilitated by the steady market demand for Govern- 

 ment bonds "which the adoption of the proposed sys- 

 tem would create. 



It is an additional recommendation of the measure, 

 of considerable weight, in my judgment, that it would 

 reconcile- as far as possible all existing interests, by 

 the opportunity offered to existing institutions to re- 

 organize under the act, substituting only the secured 

 uniform national circulation for the local and various 

 circulation, secured and unsecured, now issued by 

 them. 



The receipts into the Treasury, from all sources, in- 

 cluding loans, and balance from the preceding year, 

 for the fiscal year ending on the SOth June, l->J-2, were 

 $583,885,247 06, of which sum $49,056,3v7 62 were 

 derived from customs; $1,795,331 73 from the direct 

 tax ; from public lands, $152,203 77 ; from miscella- 

 neous sources, $931,737 64 ; from loans in all forms, 

 $529,692,460 50. The remainder, $2,257,065 SO, WM 

 the balance from last year. 



The disbursements during the same period were for 

 Congressional, Executive, and Judicial purposes, $5,- 

 939,009 29 ; for foreign intercourse. $1,339,7 K 

 miscellaneous expenses, including the mints, loans, 

 post office deficiencies, collection of revenue, and other 

 like charges, $14,129.771 SO; for expenses under 

 !he Interior Department, $.".: under the 



War Department, $894,868,407 36 ; under the 

 Department, $42,674,569 69 ; for interest on public 



