688 



PUBLIC DOCUMENTS. 



successful during the last year than they were before 

 that time in their efforts, under favor of that privi- 

 lege, to embroil our country in foreign wars. The 

 desire and determination of the Governments of the 

 maritime States to defeat that design are believed to 

 be as sincere as and cannot be more earnest than our 

 own. Nevertheless, unforeseen political difficulties 

 have arisen, especially in Brazilian and British ports, 

 and on the northern boundary of the United States, 

 which have required, and are likely to continue to 

 require, the practice of constant vigilance, and a 

 just and conciliatory spirit on the part of the United 

 States as well as of the nations concerned and their 

 governments. 



Commissioners have been appointed under the 

 treaty with Great Britain on the adjustment of the 

 claims of the Hudson's Bay and Puget's Sound Agri- 

 cultural Companies, in Oregon, and are now proceed- 

 ing to the execution of the trust assigned them. 



In view of the insecurity of life and property in 

 the region adjacent to the Canadian border, by rea- 

 son of recent assaults and depredations committed 

 by inimical and desperate persons, who are harbored 

 there, it has been thought proper to give notice that 

 after the expiration of six months, the period condi- 

 tionally stipulated in the existing arrangement with 

 Great "Britain, the United States must hold them- 

 selves at liberty to increase their naval armament 

 upon the lakes, if they shall find that proceeding 

 necessary. The condition of the border wHl neces- 

 sarily come into consideration in connection with the 

 question of continuing or modifying the rights of 

 transit from Canada through the United States, as 

 well as the regulation of imports, which were tem- 

 porarily established by the reciprocity treaty of the 

 5th June, 1854. 



I desire, however, to be understood, while making 

 this statement, that the colonial axithorities of Canada 

 are not deemed to be intentionally unjust or unfriend- 

 ly toward the United States ; but, on the contrary, 

 there is every reason to expect that, with the ap- 

 proval of the Imperial Government, they will make 

 the necessary measures to prevent new incursions 

 across the border. 



The act passed at the last session for the encour- 

 agement of emigration has, so far as was possible, 

 been put into operation. It seems to need amend- 

 ment which will enable the officers of the Government 

 to prevent the practice of frauds against the immi- 

 grants while on their way, and on their arrival in the 

 ports, so as to secure them here a free choice of avo- 

 cations and places of settlement. A liberal dispo- 

 sition toward this great national policy is manifested 

 by most of the European States, and ought to be 

 reciprocated on our part by giving the immigrants 

 effective protection. I regard our emigrants as one 

 of the principal replenishing streams which are ap- 

 pointed by Providence to repair the ravages of inter- 

 nal war, and its wastes of national strength and 

 health. All that is necessary is to secure the flow 

 of that stream in its present fulness, and to that end 

 the Government must, in every way, make it mani- 

 fest that it neither needs nor designs to impose in- 

 voluntary military service upon those who come from 

 other lands to cast their lot in our country. 



The financial affairs of the Government have been 

 successfully administered during the past year. The 

 legislation of the last session of Congress has bene- 

 ficially affected the revenues, although sufficient 

 time has not yet elapsed to experience the full effect 

 of several of the provisions of the acts of Congress 

 imposing increased taxation. 



The receipts during the year, from all sources, 

 upon the basis of warrants signed by the Secretary 

 of the Treasury, including loans and the balance in 

 the Treasury, on the first day of July, 1863, were 

 $1,394,796,007.62; and the aggregate disbursements, 

 ujjon the same basis, were $1,298,056,101.89, leaving 

 a oalance in the Treasury, as shown by warrants, of 

 $96,746,905.73. 



Deduct from these amounts the amount of the 

 principal of the public debt redeemed, and the 

 amount of issues in substitution therefor, and the 

 actual cash operations of the Treasury were : re- 

 ceipts, $884,076,646.57 ; disbursements, $865,234,- 

 087.86; which leaves a cash balance in the Treasury 

 of $18,842,558.71. 



Of the receipts, there were derived from customs 

 $102,316,152.99; from lands, $588,333.29; from direct 

 taxes, $475,648.96; from internal revenue, $109,741,. 

 134.10; from miscellaneous sources, $47,511,448.10; 

 and from loans applied to actual expenditures, in- 

 cluding former balance, $623,443,929.13. 



There were disbursed, for the civil service, $27,- 

 505,599.46; for pensions and Indians, 87,517,930.97; 

 for the War Department, $690,791,842.97; for the 

 Navy Department, $85,733,292.77; for interest of the 

 public debt, $53,685,421.69 making an aggregate of 

 $865,234,087.86, and leaving a balance in the Treas- 

 ury of $18,882,558.71, as before stated. 



For the actual receipts and disbursements for the 

 first quarter, and the estimated receipts and disburse- 

 ments for the three remaining quarters of the current 

 fiscal year, and the general operations of the Treas- 

 ury in detail, I refer you to the report of the Secre- 

 tary of the Treasury. I concur with him in the 

 opinion that the proportion of moneys required to 

 meet the expenses consequent upon the war derived 

 from taxation should be still further increased ; and 

 I earnestly invite your attention to this subject, to 

 the end that there may be such additional legislation 

 as shall be required to meet the just expectations of 

 the Secretary. 



The public debt on the 1st day of July last, as ap- 

 pears fey the books of the Treasury, amounted to 

 $1,740,690,489.49. Probably, should the war con- 

 tinue for another year, that amount may be increased 

 by not far from five hundred millions. Held as it is, 

 for the most part, by our own people, it has become 

 a substantial branch of national, though privats 

 property. For obvious reasons, the more nearly 

 this property can be distributed among all the peo- 

 ple the better. To favor such general distribution, 

 greater inducements to become owners might, per- 

 haps, with good effect, and without injury, be pre- 

 sented to persons of limited means. With this view, 

 I suggest whether it might not be both competent 

 and expedient for Congress to provide that a limited 

 amount of some future issue of public securities 

 might be held by any lona fide purchaser exempt 

 from taxation, and from seizure for debt, under such 

 restrictions and limitations as might be necessary to 

 guard against abuse of so important a privilege. 

 This would enable every prudent person to set aside 

 a small annuity against a possible day of want. 



Privileges like these would render the possession 

 of such securities to the amount limited, most de- 

 sirable to every person of small means who might 

 be able to save enough for the purpose. The great 

 advantage of citizens being creditors as well as 

 debtors, with relation to the public debt, is obvious. 

 Men readily perceive that they cannot be much op- 

 pressed by a debt which they owe to themselves. 



The public debt on the first day of July last, al- 

 though somewhat exceeding the estimate of the Sec- 

 retary of the Treasury made to Congress at the com- 

 mencement of the last session, falls short of the esti- 

 mate of that officer made in the preceding December, 

 as to its probable amount at the beginning of this 

 year, by the sum of $3,995,097.31. This fact exhibits 

 a satisfactory condition and conduct of the operations 

 of the Treasury. 



The national banking system is proving to be ac- 

 ceptable to capitalists and to the people. On the 

 25th day of November 584 national banks had been 

 organized, a considerable number of which were 

 conversions from State banks. Changes from State 

 systems to the national systems are rapidly taking 

 place, and it is hoped that, very soon, there will be 

 in the United States no bauks of issue nat authorized 



