632 



PUBLIC DOCUMENTS. 



States more closely to the centre, but leaving each 

 to move unobstructed in its proper constitutional 

 orbit." These are the teachings of men whose deeds 

 and services have made them illustrious, and who, 

 long since withdrawn from the scenes of life, have 

 left to their country the rich legacy of their example, 

 their wisdom, and their patriotism. Drawing fresh 

 inspiration from their lessons, let us emulate them 

 in love of country and respect for the Constitution 

 and the laws. 



The report of the Secretary of the Treasury affords 

 much information respecting the revenue and com- 

 merce of the country. His views upon the. currency, 

 and with reference to a proper adjustment of our 

 revenue system, internal as Well as impost, are com- 

 mended to the careful consideration of Congress. 

 In my last Annual Message I expressed my general 

 views upon these subjects. I need now only call 

 attention to the necessity of carrying into every de- 

 partment of the Government a system of rigid ac- 

 countability, thorough retrenchment, and wise econ- 

 omy. With no exceptional nor unusual expenditures, 

 the oppressive burdens of taxation can be lessened 

 by such a modification of our revenue laws as will 

 be consistent with the public faith, and the legiti- 

 mate a,nd necessary wants of the Government. 



The report presents a much more satisfactory con- 

 dition of our finances than one year ago the most 

 sanguine could have anticipated. During the fiscal 

 year ending the 30th June, 1865, the last year of the 

 war, the public debt was increased $941,902,537, and 

 on the 31st of October, 1865, it amounted to $2,740,- 

 854,750. On the 31st day of October, 1866, it had 

 been reduced to 2,551,310,066, the diminution, 

 during a period of fourteen months, commencing 

 September 1, 1865, and ending October 31, 1866, 

 having been $206,379,565. In the last annual report 

 on the state of the finances, it was estimated that 

 during the three-quarters of the fiscal year ending 

 the 30th June last, the debt would be increased 

 f. 12,194,947. During that period, however, it was 

 reduced $31, 196,387, the receipts of the year having 

 been $89,905,905 more, and the expenditures $200,- 

 529,235 less than the estimates. Nothing could more 

 clearly indicate than these statements the extent and 

 availability of the national resources, and the rapidity 

 and safety with which, under our form of govern- 

 ment, great military and naval establishments can 

 be disbanded, and expenses reduced from a war to a 

 peace footing. 



During the fiscal year ending the 30th of June, 

 1866, the receipts were $558,032,620, and the expen- 

 ditures 1520,750,940, leaving an available surplus of 

 $37,281,680. It is estimated that the receipts for the 

 fiscal year ending the 30th Juno, 1867, will be $475,- 

 061,386, and that the expenditures will reach the 

 sum of $316,428,078, leaving in the Treasury a sur- 

 plus of $158,633,308. For the fiscal year ending 

 June 30, 1868, it is estimated that the receipts will 

 amount to $436,000,000, and that the expenditures 

 will be $350,247,641 showing an excess of $85,752,- 

 359 in favor of the Government. These estimated 

 receipts may be diminished by a reduction of excise 

 and import duties ; but after all necessary reductions 

 shall have been made, the revenue of the present and 

 of following years will doubtless be sufiicient to cover 

 all legitimate charges upon the Treasury, and leave 

 u large annual surplus to be applied to the payment 

 of the principal of the debt. There seems now to 

 be no good reason why taxes may not be reduced as 

 the country advances in population and wealth, and 

 yet the debt be extinguished within the next quarter 

 of a century. 



The report of the Secretary of War furnishes val- 

 uable and important information in reference to the 

 operations of his Department during the past year. 

 Few volunteers now remain in the service, and they 

 are being discharged as rapidly as they can be re- 

 placed by regular troops. The aimy has been 

 promptly paid, carefully provided with medical 



treatment, well sheltered and subsisted, and is to be 

 furnished with breech-loading small-arms. The mili- 

 tary strength of the nation has been unimpaired by 

 the discharge of volunteers, the disposition of un- 

 serviceable or perishable stores, and the retrench, 

 ment of expenditure. Sufficient war material t 

 meet any emergency has been retained, and, from 

 the disbanded volunteers standing ready to respond 

 to the national call, large armies can be rapidly or- 

 ganized, equipped, and concentrated. Fortifications 

 on the coast and frontier have received, or are being 

 prepared for more powerful armaments ; lake sur- 

 veys and harbor and river improvements are in 

 course of energetic prosecution. Preparations havo 

 been made for the payment of the additional boun- 

 ties authorized during the recent session of Con- 

 gress, under such regulations as will protect tho 

 Government from fraud, and secure to the honor- 

 ably-discharged soldier the wellrearned reward of 

 his faithfulness and gallantry. More than six thou- 

 sand maimed soldiers have received artificial limbs 

 or other surgical apparatus ; and. forty-one national 

 cemeteries, containing the remains of 104,526 Union 

 soldiers, have already been established. The total 

 estimate of military appropriations is $25,205,669. 



It is stated in the report of the Secretary of the 

 Navy that the naval force at this time consists of two 

 hundred and seventy-eight vessels, armed with two 

 thousand three hundred and fifty-one guns. Of 

 these, one hundred and fifteen vessels, carrying one 

 thousand and twenty-nine guns, are in commission, 

 distributed chiefly among seven squadrons. The 

 number of men in the service is thirteen thousand 

 six hundred. Great activity and vigilance have been 

 displayed by all the squadrons, and their movements 

 have been judiciously and efficiently arranged in 

 such manner as would best promote American com- 

 merce, and protect the rights and interests of our 

 countrymen abroad. The vessels unemployed are 

 undergoing repairs, or are laid up until their ser- 

 vices may be required. Most of the iron-clad fleet 

 is at League Island, in the vicinity of Philadelphia, 

 a place which, until decisive action should be tukca 

 by Congress, was selected by the Secretary of the 

 Navy as the most eligible location for that class of 

 vessels. It is important that a suitable public sta- 

 tion should be provided for the iron-clad fleet. It is 

 intended that these vessels shall be in proper condi- 

 tion for any emergency, and it is desirable that the 

 bill accepting League Island for naval purposes, 

 which passed the House of Representatives at its 

 last session, should receive final action at an early 

 period, in order that there may be a suitable public 

 station for this class of vessels, as well as a navy- 

 yard of area sufficient for the wants of the service, 

 on the Delaware River. The naval pension fund 

 amounts to $11,750,000, having been increased 

 $2,750,000 during the year. The expenditures of the 

 Department for the fiscal year ending 30th June last 

 were $43,324,526, and the estimates for the coming 

 year amount to $23,568,436. Attention is invited to 

 the condition of our seamen, and the importance of 

 legislative measures for their relief and improve- 

 ment. The suggestions in behalf of this deserving 

 class of our fellow-citizens are earnestly recom- 

 mended to the favorable attention of Congress. 



The report of the Postmaster-General presents a 

 most satisfactory condition of the postal service, 

 and submits recommendations which deserve the 

 consideration of Congress. The revenues of the 

 Department for the year ending June 80, 1866, were 

 $14,386,986, and the expenditures $15,352,079, show- 

 ing an excess of the latter of $965,093. In antici- 

 pation of this deficiency, however, a special appro- 

 priation was made by Congress in the act approved 

 July 28, 1866. Including the standing appropriation 

 of $700,000 for free mailmatter, as a legitimate por- 

 tion of the revenues yet remaining unexpended, the 

 actual deficiency for the past year is only $265,093-^ 

 a sum within $51,141 of the amount estimated in the 



