778 



PUBLIC DOCUMENTS. 



bilities, growing out of the war. These they have, for 

 the most part, met and discharged with zeal and effi- 

 ciency. This acknowledgment justly includes those con- 

 suls who, residing in Morocco, Egypt,, Turkey, Japan, 

 China, and other oriental countnes, are charged with 

 complex functions and extraordinary powers. 



The condition of the several organized Territories is 

 generally satisfactory, although Indian disturbances in 

 New Mexico have not been entirely suppressed. The 

 mineral resources of Colorado, Nevada, Idaho, New 

 Mexico, and Arizona are proving far richer than has 

 been heretofore understood. I lav before you a com- 

 munication on this subject from the Governor of New 

 Mexico. 



I again submit to your consideration the expediency 

 of establishing a system for the encouragement of im- 

 migration. Although this source of national wealth and 

 strength is again flowing with greater freedom than for 

 several years before the insurrection occurred, there is 

 still a great deficiency of laborers in every field of in- 

 dustry, especially in agriculture and in our mines, as 

 well of iron and coal as of the precious metals. While 

 the demand for labor is thus increased here, tens of 

 thousands of persons, destitute of remunerative occu- 

 pation, are thronging our foreign consulates, and offer- 

 ing to emigrate to the United States, if essential, but 

 very cheap, assistance can be afforded them. It is easy 

 to see that, under the sharp discipline of civil war, the 

 nation is beginning a new life. This noble effort de- 

 mands the aid, ana ought to receive the attention and 

 support of the Government. 



Injuries, unforeseen by the Government and unin- 

 tended, may, in some cases, have been inflicted upon the 

 subjects or citizens of foreign countries, both at sea and 

 on land, by persons in the service of the United States. 

 As this Government expects redress from other Pow- 

 ers when similar injuries are inflicted by persons in 

 their service upon citizens of the United States, we 

 must be prepared to do justice to foreigners. If the 

 existing judicial tribunals are inadequate to this pur- 

 pose, a speciaj court may be authorized, with power to 

 near ana decide such claims of the character referred 

 to as may have arisen under treaties and the public 

 law. Conventions for adjusting these claims by joint 

 commission have been proposedto some Governments, 

 but no definitive answer to the proposition has yet been 

 received from any. 



In the course of the session 1 shall probably have 

 occasion to request you to provide indemnification to 

 claimants where decrees of restitution have been ren- 

 dered and damages awarded by admiralty courts ; and 

 in other cases, where this Government may be acknowl- 

 edged to be liable in principle, and where the amount 

 of that liability has been ascertained by an informal 

 arbitration. 



The proper officers of the Treasury have deemed 

 themselves required, by the law of the United States 

 upon the subject, to demand a tax upon the incomes 

 of foreign consuls in this country. While such a de- 

 mand may not in strictness be in derogation of pub- 

 lic law, or perhaps of any existing treaty between the 

 United States and a foreign country, the expediency of 

 BO far modifying the act as to exempt from tax the in- 

 come of such consuls as are not citizens of the United 

 States, derived from the emoluments of their office, or 

 from property not situated in the United States, is sub- 

 mitted to your serious consideration. I make ihis 

 suggestion upon the ground that a comity which ought 

 to be reciprocated exempts our consuls, in all other 

 countries, from taxation to the extent thus indicated. 

 The United States, I think, ought not to be exception- 

 ablv illiberal to international trade and commerce. 



The operations of the Treasury during the last year 

 have been successfully conducted. The enactment by 

 Congress of a national banking law has proved a valu- 

 able support of public credit ; and the general legisla- 

 tion in relation to loans has fully answered the expec- 

 tations of its favorers. Some amendments may be 

 required to perfect existing laws ; but no change in 

 their principles or general scope is believed to be 

 needed. 



Since these measures have been in operation, all de- 

 mands on the Treasury, including the pay of the army 

 and navy, have been promptly met and fully satisfied. 

 No considerable body of troops, it is believed, were ever 

 more amply provided, and more liberally and punc- 

 tually paid ; and it may be added, that by no people 

 were the burdens incident to a great war ever more 

 cheerfully borne. 



The receipts during the year from all sources, includ- 

 ing loans and the balance in the Treasury at its com- 

 mencement, were $901,125,674.86, and the aggregate 

 disbursements $895,796,630.65, leaving a balance on 

 the 1st July, 1863, of $5,329,044.21. Of the receipts 

 there were derived from customs, $69,059,642.40 ; from 

 internal revenue, $37,640,787.95; from direct tax, 

 $1,485,103.61 ; from lands, $167,617.17 ; from miscel- 

 laneous sources, $3,046,615.35 ; and from loans, $776,- 

 682,361.57 ; making the aggregate, $901,125,674.86. 



Of the disbursements there were for tho civil ser- 

 vice, $23,253.922.08 ; pensions and Indians, $4,216,- 

 520.79 ; for interest on public debt, $24,729,846.51 ; for 

 the War Department, $599,298,600.83 ; for the Navy 

 Department, $63,211,105.27; for payment of funded 

 and temporary debt, $181,086,635.07 ; making the ag- 



fregate, $895,796,630.65 ; and leaving the balance of 

 5,329,044.21. 



But the payment of funded and temporary debt hav- 

 ing been made from moneys borrowed during the 

 year, must be regarded as merely nominal payments, 

 and the moneys borrowed to make them as" merely 

 nominal receipts; and their amount, $151,086,635.07, 

 should therefore be deducted both from receipts and 

 disbursements. This being done, there remains as 

 actual receipts, $720,039,039.79 ; and the actual dis- 

 bursements, $714,709,995.58, leaving the balance as al- 

 ready stated. 



The actual receipts and disbursements for the first 

 quarter, and the estimated receipts and disbursements 

 for the remaining three quarters of the current fiscal 

 year 1864, will be shown in detail bv the report of the 

 Secretary of the Treasury, to which 1 invite your atten- 

 tion. It is sufficient to say here that it is not believed 

 that actual results will exhibit a state of finances less 

 favorable to the country than the estimates of that 

 officer heretofore submitted ; whilst it is confidently 

 expected that at the close of the year both disburse- 

 ments and debt will be found very considerably less 

 than has been anticipated. 



The report of the Secretary of War is a document of 

 great interest. It consists of 



1. The military operations of the year, detailed in 

 the report of the General-in-Chief. 



2. The organization of colored persons into the war 

 service. 



3. The exchange of prisoners, fully set forth in the 

 letter of Gen. Hitchcock. 



4. The operations under the act for enrolling and 

 calling out the national forces, detailed in the report 

 of the Provost-Marshal General. 



5. The organization of the invalid corps; and, 



6. The operation of the several departments of the 

 Quartermaster-General, Commissary-General, Paymas- 

 ter-General, Chief of Engineers, Chief of Ordnance, and 

 Surgeon-General. 



It has appeared impossible to make a valuable sum- 

 mary of this report, except such as would be too ex- 

 tended for this place, ana hence I content mvself by 

 asking your careful attention to the report itself. 



The duties devolving on the naval branch of the 

 service during the year, and throughout the whole of 

 this unhappy con test, have been discharged with fidel- 

 ity and eminent success. The extensive blockade has 

 been constantly increasing in efficiency as the navy has 

 expanded ; yet on so long a line it has so far been im- 

 possible to entirely suppress the illicit trade. 



From returns received at the Navy Department, it 

 appears that more than one thousand vessels have 

 been captured since the blockade was instituted, and 

 that the value of prizes already sent in for adjudication 

 amounts to over thirteen millions of dollars. 



The naval force of the United States consists at this 







