4 © 2 ) 
o-i 
INVESTMENTS. 
PRESIDENT’S MESSAGE. 
THE ROTHSCHILDS. 
The Philadelphia Xcrth American gives some 
excellent advice to those who wish to invest 
money. It will be well for all who are in funds 
to heed the counsel: 
“ Though money has been temporarily scarce, 
capital continues abundant, — and the recent 
tumble in the stock market has brought capi¬ 
talists to a realizing sense of the unreliable 
character of many of the securities dealt in. It 
is greatly to the credit of the Government, that 
ita loans, of all the securities daily dealt in on 
the market, have maintained their integrity of 
price better than almost anything else. Its Five 
T wemy Year Six Per Cent. Loan, the interest on 
which is promptly paid iu gold, ha* been sub¬ 
scribed to, all through the pressure iu the money 
market, at an average of more than two millions 
per day. And, what is not the least gratifying 
fact iu connection with the daily large subscrip¬ 
tions to this popular loau, scarcely any of it is 
returned to the market for sale. It, is taken 
for investment, and is held with unfaltering 
confldence in its reliability. And why should it 
not be? It is seen that the Government now — 
after two years of the most gigantic war that the 
world has ever known—experiences no difficulty 
in commanding the necessary means to prosecute 
it, or in paying regularly the interest in gold as 
it falls due. If this can be done while the war is 
being waged—who can anticipate any difficulty 
in readily accomplishing it. when the war shall 
be ended? What better investment, then, for 
capital, than the ‘Five-Twenty' Government, 
Loau? But if any doubt, let him refer to the 
statistics furnished by the census-tables of the 
various nations of the world. The facts which 
they present will prove the most satisfactory 
mode of dispelling the numberless gloomy ap¬ 
prehensions which are being continually con¬ 
jured up by those who are disposed to exaggerate 
the extent of the calamity occasioned by our 
rebellion. A reference to the state of most of 
the prosperous nations of the old world clearly 
disproves such a position, and shows that the 
highest conditions of national advancement have 
not been materially affected by the extended 
wars in which those nations have been immemo- 
rially engaged, and that a heavy national in¬ 
debtedness has not proved an uumlligated evil 
“For instance, Great Britain, France and the 
Netherlands, will undoubtedly bo conceded to 
represent the highest prosperity that has been 
attained by any of the European nations. And 
yet no nations have been called upon to endure 
fiercer or more prolonged wars, domestic and 
foreign, than they. The affect has been, untpiea 
tionably, to incur an enormous national indebt¬ 
edness; but neither their wars nor their indebt¬ 
edness have had the effect to destroy their 
elasticity, nor to check the progress of their 
general prosperity. The result would have been 
different, probably, if these nations had been fall¬ 
ing into decay, instead of being, as they re, dly were, 
in a state of development; and In this respect 
their case resembles our own, with enormous 
advantages in onr favor. These nations, while 
undergoing the trials of war, were oppressed by 
the evils of an immense exodus of their people, 
caused by the density of their population, the 
impossibility to provide occupation for them, the 
low price of labor and the scarcity of territory. 
Compared with our owu country, they pos¬ 
sessed slight room for future development; they 
were settled in every part, and no vast territory 
lay invitingly open to encourage enterprise and 
settlement. Their great problem has ever been 
what to do with their surplus population, which, 
in its turn, has sought new fields for adventure 
and self-support iu countries like our own, where 
an illimitable territory waits to be developed, 
and where incalculable resources invite industry 
and energy The encouragement to be derived 
from these facts aud comparisons of circum¬ 
stances is very great—and, to the mind of any 
dispassionate reasoner, is conclusive — that the 
course ot this great country is onward and up¬ 
ward—and that its credit will live, unimpaired, 
to the end.” 
— Our readers having money to invest will do 
well to ponder the foregoing facts and sugges¬ 
tions, aud invest in the securities of the Govern¬ 
ment. The Circular of Messrs. Fisk & Hatch, 
the well known Bankers, in another column, will 
give them useful information on the subject. 
in 
The following announcement, appeared 
the English papers recently:—“ Baron Gustavus 
Rothschild, of Naples, has retired from business 
with a fortune, it is said, of £0,000,000 sterling 
($30,000,000.) There are now in Europe but 
four houses of Rothschilds — in London, Paris, 
Vienna and Frankfort.” The Neapolitan branch 
of the great house of Rothschild waa the least 
wealthy and influential of the five branches of it; 
but assuming that the realized capital of the 
remaining four, upon which the managers could 
at any time retire, as Baron Gustavus has just 
done, is four times that of the Neapoll'an, it 
would amount to the enormous sum of $150,000,- 
0001 This is the lowest estimate — how much 
below the truth it, is we have no means of ascer¬ 
taining. Indeed, we doubt if it be exactly 
known, by the fortunate holders themselves. 
The annual interest on such a sum as this, at six 
per cent, would be $0,000,000, or $24,057 a day. 
The wealthiest nobleman in Eugland is the Mar¬ 
quis of Westminster, whose daily income has been 
estimated at $5,000, which is one-fifth less than 
that of the Individual members of the house of 
Rothschild. This famous banking firm is one of 
the great Powers of Europe. 
Fellow Citizens if the Senate and House if Representatives; 
Another year of health and of sufficiently 
abundant harvests has passed. For these, and 
especially for the improved condition of our 
national affairs, our renewed and profoundesl 
Colorado, Nevada, Idaho, New Mexico and Ari¬ 
zona are proving far richer than have been here¬ 
tofore understood. I lay Itefore you a communi¬ 
cation on this subject from the Governor of New 
Mexico. 
I again submi' to your consideration the expe¬ 
diency of establishing a system lor the encour¬ 
agement of emigration. Although this source of 
national wealth and strength Is again flowing 
gratitude is due. 
We remain in peace and friendship with for- with greater freedom than for several years be- 
ign powers The efforts of disloyal citizens of fore the insurrection occurred, there is still a 
the United States to involve ns in’foreign wars, great deficiency m every field of industry, ve¬ 
to aid an inexcusable Insurrection, have been peoiallv in agriculture, and in our mines, as well 
— - * - - - * —* /• * * _ »v. 
GEN. GILMORE'S SHELLS IN CHARLESTON. 
A REttKr, correspondent, of the Augusta (Ga.) 
Sentinel writes from Charleston. About tweuty- 
five 100 pound Parrott shells were flung into the 
city to-day. Old Gilmore scattered them 
promiscuously iu the lower part ot the city, and 
unavailing. Her Britunnic Majesty’s Govern 
ment, as was justly expected, have exercised 
their authority In prevent the departure of new 
hostile expeditions from British ports. The 
Emperor of France has, by a like proceeding, 
promptly vindicated the neutrality which he 
proclaimed at the beginning of "the contest. 
Questions of great Intricacy and importance 
have arisen out of the blockade, and Other bellig¬ 
erent, operations, between the government, and 
several of th“ maritime powers, but they have 
been discussed, anti, as tar a? we* possible, ac¬ 
commodated in a spirit of frankness, justice and 
natural good will. It i* especially gratifying 
that onr prize courts, by the impartiality of the 
adjudication, have commanded the respect anti 
confidence of maritime powers. 
The supplemental treaty between the U. B. and 
Great Britain for the suppression of the sUve 
trade, made on the 17th of February last, hft* 
been duly ratified and carried into execution. It 
is believed that so far as American ports and 
Americuu citizens are concerned, that inhumau 
and odious traffic has been brought to an end. 
1 shall submit for the consideration of the Sen¬ 
ate, a Convention for the adjustment, of the pos¬ 
sessory claims tn Washington Territory, arising 
out of the treaty of the 15th of June, 1846, be¬ 
tween the United States and Great Britain, and 
which have been the source of much disquiet 
among the citizens of that now rapidly improving 
part of tVe country. 
of iron as the precious metals. While the de¬ 
mand fur labor is tints increased here. lens, of 
thousands of persons destitute of remunerative 
occupation are thronging onr foreign consulates 
and offering to emigrate to the United States if 
essential but very cheap assurance can he 
afforded them. 
It is easy to pee that under the sharp discipline 
of civil war the nation is beginning a new life. 
This noble effort demands the aid, and ought to 
receive, the attention of the Government. Inju¬ 
ries unforseen by the Government, and unin¬ 
tended, may in some cases have been inflicted on 
the subjects or citizens of foreign countries, both 
at sen hud on land, by persons in the service of 
the United States. As the Government expects 
tfl 
are ..... 
zens of the United States, we must lie prepared 
to do justice to foreigners. If the existing judi 
clnl tribunals are inadequate to this purpose 
a special court may be authorized with power to 
hear and decide pitch claims of the character re¬ 
ferred to as may have arisen under treaties and 
I lie public law. Conventions for adjusting the 
claims by joint- com missions, bavo been pro¬ 
posed to some Governments, but no definite 
answer to the proposition has yet been received 
from any of them. In the course of the present 
session T shall probably pave occasion to request, 
you to provide indemnification to claimants 
where decrees of restitution have been rendered 
The events of the war gives an increased in¬ 
terest, and Importance to the navy, which will 
probably extend beyond the war itself. The 
armored vessels in our navy, completed aud in 
service, or which are under contract and ap¬ 
proaching completion, are believed to exceed in 
number those of any other power; but while 
these may be relied upon for harbor defence and 
coast service, others of greater strength and 
capacity will he necessary for cruising pur¬ 
poses, and to maintain our rightful position ou 
the ocean. 
The change that has taken place in naval ves¬ 
sels and naval warfare since the introduction of 
steam as a motive power tor ships of war, de¬ 
mands either a corresponding change in some of 
our existing Navy Yards, or the establish ment 
of new ones for the construction and necessary 
repair of modern naval vessels. No Inconsider¬ 
able embarrassment,-delay arid public injury 
have been experienced from the want, of such 
governmental establishments. The necessity of 
such n Navy Yard, ro furnished, at some suita¬ 
ble place oil the Atlantic seaboard, has. on re¬ 
peated occasions, been brought to the attention 
of Congress by the Navy Department, and is 
again presented In the report of the Secretary, 
which accompanieg this communication. I think 
il my il-iiy io invite your special attention to this 
•edress from other powers when similar injuries I subject, and also to that of establishing a yard 
ire inflicted by persons in their service on cit.i- abd depot for naval purposes upon one of the 
Western rivers. A naval force bus been created 
in these interior waters, and under many disad¬ 
vantages, within a little more than two years, 
exceeding in number the whole naval force or 
A novel and important question, involving the and damages awarded by Admiralty Courts, and 
extent of the maritime jurisdiction of Spain in in other Ctuo^ where this Government may be 
the waters which surround the Island or Cuba, acknowledged to bo liable in principle, ami 
has been debated without reaching an agreement, where the amount, of that liability has been ascer- 
and it is proposed, in an amicable spirit., to refer taitted by informal urbltra'ion. 
_. -- — - - . it. to the arbitrament of a friendly power. A The proper Officers of the Treasury have 
it reallv seemed, from the way in which they Convention tor that purpose will be submitted to deemed themselveB required by the law of the 
f „ . ... I, ,.j n - (n ui the Senate. United States upon the subject, to demand a tax 
were pitched axu, ^ ® " . T have thought it proper, subject to the appro- upon the incomes of foreign consuls In this 
somebody. The City Hall building had a bole va T of the Senate to coneur with the interested country. While such a demand may not, in 
nommericlal powers In an arrangement for the strictness, bn So derogation of publto law, or per- 
iiquidatlon of the Scheldt, dues, upon principles haps of any existing treaty between the United 
■ ' ■ ‘ ’ ‘ " ’ 1 l iu regard States and a foreign country, the expediency ol 
punched in one corner and some of the marble 
cornice knocked away. One struck the telegraph 
office, and the operators “cut stick.” One 
smashed through the roof of a house in Queen 
street, and several falling in this neighborhood, 
the frightened denizens “vamosed to (he tune of 
the double-quick." Several fell in the vicinity of 
the banks on Broad street and East Bay tearing 
up the streets, smashing window panes, aud 
kicking up the mischief generally. One went, 
crashing through the Mechanics' and Planters’ 
Bank, and it is evident, I think, that Gilmore 
was after making a deposit. Whether he will be 
regularly “booked" anti his currency taken “at 
par” is more than I can say. 
which have been heretofore adopted 
to the imposts on navigation iu the waters of 
Denmark. 
The c-'titroversy between this government and 
that of Chili touching the seizure at Satan a of a 
large amount of treasure belonging to citizens of 
the United States, has bpen closed 1»V the award 
of his Majesty, the King of the Belgians, to 
whom the question was referred by the parties, 
The subject wsr thoroughly examined by that 
Magistrate, and although the sum awarded to 
the claimants may not have been as large a* 
they expected, there is no reason to distrust the 
reason of Ills Majesty’s decision. It was prompt¬ 
ly complied with by’Chili, when intelligence of It 
reached that country. 
Incidents in the p’rogressof our civil war have 
forced upon my attention the uncertain state of 
FROST IN THE TROPICS. 
A correspondent of a Michigan paper, wri¬ 
ting at the ancient city of St Augustine, Florida, 
makes the following statement as to the destruc¬ 
tion of orange trees by a severe frost, nearly 
thirty years ago: 
Prior to the year 1835 this vicinity was an im¬ 
mense orange orchard. Matured thrifty trees 
sometimes produced 6,000 oranges, aud the aver¬ 
age produce per annum, of a single tree, was 
500. When the business was in its prime the 
yearly export was between two and three mil¬ 
lions of dollars from this city alone; but one 
night in the month of February, a frost cut off 
the entire species of the orange tribe. Thus one 
of the greatest resources of the city was cut off, 
many were hurled from the seat of affluence 
into poverty and distress. The city has never 
yet recovered from the blight of that stroke. 
Mauy shoots have sprung up. but have struggled 
under the pressure of disease and the ravages of 
aniraalcula which prey on the life of young 
shoots. 
How the Three-Hundred Pounder Par¬ 
rotts are Worked.— A correspondent on Mor¬ 
ris Island writes:—As there is no manual laid 
down for the three hundred-pounder Parrott, I 
subjoin that in use. The piece is on its carriage 
and “from battery.” Implements, no two to be 
in the same place and no one in its proper place. 
The instructor gives the command “load her 
upl” At this command the gunner says, “some 
of you fellers bring a shell,“ and “John, bring a 
cartridge.” Some of the “fellers” take a small 
hand-barrow and bring a shell. Gunner says, 
“Stick in that powder.” “Now. boys, hold on 
till i get out a fuse.” “Stick it in.” All hands, 
by hard heaving, get the shell to the embrasnre. It has been found i 
G'innersayB,‘‘Swablier out-’’ Sta is M EI'SCtSSS 
out. “Now, heave and haul, aud in i goes, quiring clerks of c< 
It goes in accordingly. “Now, ram it down.” 
It. is rammed down. “Now, run her in.' She 
is run in. “Screw down the recoil-bands.” 
They are screwed down. Gunner aimg. “Slew 
her round a little.” “All right.” “Where’s 
that primer?" “Now, git out of the way, every¬ 
body.” All go to windward, nnd No. 3 steps 
round a corner, so as not to be hit if the gun 
bursts. Gunner says, “Blaze away!” She 
blazes away. Remark of the gunner on return¬ 
ing to the gun:—“How' are you, Sumter?” Re¬ 
peat. 
Parakkine.— Paraffine possesses certain prop¬ 
erties which render it useful iu the laboratory, 
it may be advantageously substituted for oil iu 
baths, as it endures a high temperature without 
evaporating or emitting any unpleasant odor, 
Filtering paper, after being soaked in it, may be 
kept several weeks in concentrated sulphuric 
add without undergoing the slightest alteration, 
From this property of paraffine it may Ire advan¬ 
tageously applied as a coating to labels on 
bottles containing strong acids; fluoric acid, 
even, does not act upon it, except it be heated. 
Paraffine appears also to he useful in preserving 
fruits. Apples, pears, &c., coated with it retain 
all their freshness during several months. 
so far modifying the act. as to exempt from tax 
the incomes of such consuls as are not, citizens 
of the United States, derived from the etnqlti. 
ments of their office nr from property not situ¬ 
ated iu the United States, is submitted to your 
.serious consideration. I make ttiis 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 indi¬ 
cated. The United Stales. I think, ought not to 
be exeepllonably illiberal to international trade 
and commerce. ‘ 
The operations of the Treasury during the 
last year have been successfully conducted. Tim 
enactment by Congress of a National Banking 
Law has proved a valuable support of the pub¬ 
lic credit, and the general legislation In relation 
international (piestlonB touching the rights of I to loans has fully answered the expects ions of its 
foreigners iu this country and of United States framers. Some amendments may be required to 
citizens abroad. In regard to some governments perfect existing laws, 
these right* are partially defined by treaties. In principles or general scope 
no instance is it, stipulated that in the event, of needed- Since these nteasnr 
r • •• ........ * ... • i*_ .. 
Causes do not seem to produce effects. Se¬ 
quences are arbitrary. There is general law, 
but a great deal of special lawlessness. You 
lay all your plans to accomplish an object, and 
mi-s it, while the good that you never dream of 
obtaining comes to you unsought. 
Discovery op a Sand-imbedded Town in 
France.— A singular discovery, it is said, has 
been made on the French coast, near the mouth 
of the Garonne. A town has been discovered 
buried iu the sand, and a church has already 
been extracted from it. Its original plan shows 
it to have been built uear the close of the Roman 
empire. Tbe original paintings, its sculptured 
choir aud capitals, are adorned with profuse 
ornaments, which are attracting a large number 
of visitors. This is all that remains of those 
cities described by Pliny and Strabo, although 
the Gulf of Gascony abounds in ruins of ancient 
cities. 
Rapid Railroad Construction. — Gen. D. 
C. McCall urn, formerly Superintendent of the 
Erie Railroad, is now Government Engineer of 
Railways. Lately there was accomplished, un¬ 
der his direction, a feat without a parallel in 
railroad construction. The thirty miles of rail¬ 
road recently destroyed by Lee's army, wa3 re¬ 
built; and. iu doing so, the ties were prepared, 
and the main track and switches laid, COO feet of 
bridging (someof which was GO feet in height,) 
twenty culverts and ten w r ater tanks, constructed 
all within the Bpace of three weeks! 
of civil war, a foreigner residing within tbe lines 
of the insurgents i* to he exempted from the rule 
which classes turn as a belligerent, in whoso be¬ 
half Ills government cannot, expect any privileges 
distinct from that, character. I regret to say that 
such claims have been put forward in behalf of 
foreigners who have lived iu tbe United Slates 
the greater part of their lives. 
Many persons bom lit foreign countries, who 
have declared their intention to become citizens, 
or who have been naturalized, have evaded mili¬ 
tary duty by denying the fact, and thereby throw¬ 
ing upon the Government tho burden of proof, 
has been found impracticable to obtain litis 
“guides to the proper sources of 
might, be supplied by re¬ 
quiring clerks or courts, where declarations of 
intention maybe made, to give, periodically, lists 
of tho names’ of persons naturalized or declaring 
their Intention to become citizens, to the Seero¬ 
tary ol the interior, in whoso Department the 
names might be arranged and printed for gen¬ 
eral information. There is n I so reason to believe 
♦hat foreigners frequently become citizens of the 
XT. S. for the sole purpose of evading duties im¬ 
posed by the laws of their native country, to 
which, on becoming naturalized here they at 
once repair, and though never returning to the 
United States still claim the interposition of this 
Government as citizens. Many altercations and 
great, p re indices ’• ave heretofore arisen outof this 
abuse. 11»-. f.hei "ore submitted to your serious 
consideration that “ migh! bo advisable to fix ft 
limit beyond which mo citizen of the United 
States residing abroad may claim the interposi¬ 
tion of this Government. The right of tmffiago 
has often been assumed ar d exercised by aliens 
under pretence o‘ naturalization, which they 
have disavowed when drafted into the military 
service. I submit the expediency of such an 
amendment of the law as will make the fact ol 
voting an estoppel against any plea of exemp¬ 
tion from mil itarv service, or other civil obligation 
on the ground of alienage. 
Tn common with other western powers, our 
relations with Japan have been brought into 
serious jeopardy through the perverse opposition 
of the hereditary aristocracy of the Empire to 
the enlightened and liberal policy of the Tycoon, 
de-igned to bring the country into the sociely of 
nations. It Is hoped, although not with entire 
confidence, Ibat these difficuties may bo peace¬ 
fully overcome. I ask your attention to the claim 
of the minister residing there for damages he 
sustained in the destruction by fire of the resi¬ 
dence of the Legation at. Yeddo. 
Satisfactory arrangements have been made 
with the Emperor of Russia, which it is believed 
will result In effecting a continuous line of tele 
graph through that, Empire from the Pacific 
coast. T recommend to your favorable consider¬ 
ation the mihject of an international telegraph 
across the Atlantic Ocean, and also a telegraph 
between the Capital and the national forts along 
the seaboard aud the. Gulf of Mexico. Such com¬ 
munication, established with any reasonable out¬ 
lay, would tie economical as well as effective aids 
to the diplomatic, military and naval service. 
The Consular system of the United States, 
under the enactments of the last Congress, begins 
to lie self-sustaining, and there is reasoo to hope 
that it may become entirely ho with the increase 
of trade which will ensue whenever peace is re¬ 
stored. Oar Ministers abroad have been faithful 
in defending American rights. In protecting 
commercial interests our consuls havenece sarily 
had to encounter increased labors and rospon'- 
hilllies growing out of the war. These they 
have for the most part mot and discharged with 
zeal and efficiency. This ackno wledgment justly 
includes those consuls who, residing in Morocco. 
Egypt, Turkey, Japan, China and other oriental 
countries, are charged with complex functions 
and extraordinary powers. 
The condition of the several organized territo¬ 
ries is generally satisfactory, although the Indian 
disturbances la New Mexico have not been en¬ 
tirely suppressed. The mineral resources of 
no change in their 
is believed to be 
es have b< en in op¬ 
eration, all demands on the Treasury, including 
the pav of the tinny and navy, have been 
promptly mot and fully satisfied. No considera¬ 
ble body of troops, it is believed, were ever more 
amply provided and more liberally and punctu¬ 
ally paid; and it. may be added that by no peo¬ 
ple were tho burdens incidental to a great war 
more cheerfully borne. 
The receipts during the year from all sources, 
Including loans aud the balance in the Treasury 
at, its commencement, were $901125674.*6. am! 
tbp aggregate disbursements $805,796 630315, 
leaving a balance on the 1st of July, 1803, of 
$,329,544.31. Of the recei pts t here were received 
from Customs $50 059,047.40; from Internal Rev 
enue. *37 640,787 05; from direct, tax, $1,486, 
11)8.61; from lands, $167.61717; from miscella 
neons sources, $3 046 615 15, and from loans, 
$776682.31157, making an aggregate of $001,- 
125.674 86. , . f tl 
Of the disbursements there were tor the. civil 
service, $23,353,922.08: for pensions and Indians, 
$4 216 526,69; for interest, on public debt, $24,- 
720,846 51; for the War Department, $590,208. 
600-83; for the Navy Department, $03,311,165 27; 
for payment of funded and temporary debt $181,- 
086.635 07, making the aggregate $805 796 630.05, 
and leaving a balance of $5,320,014 21. But the 
nay merits of the funded and temporary debt 
having been made from moneys borrowed during 
the year must be regarded as merely nominal 
payments, aud tlio moneys borrowed to make 
them us merely nominal receipts, and their 
amount, $181,086,635.07. should therefore be de¬ 
ducted both from receipts and disbursements. 
This being done, there remains as actual receipts 
$820 089.739.70, and actual disbursements $71 U 
700,005 58, leaving thu balance as already stated 
The actual receipts and disbursements for Un- 
first quarter, nnd estimated receipts and disburse 
ments for the remaining three quarters ol the 
current fiscal year 18(14, will he shown in detail 
bv the report of tho Secretary ot the Treasury, to 
which I invite your attention. It la sufficient to 
sav here that it is not believed that actual results 
will exhibit a state of tbe finances lees favorable 
to tbe country than tbe estimates of that officer 
heretofore submitted, while it is confidently ex¬ 
pected that, at- tho close of the year both disburse¬ 
ments and debt will be found very considerably 
less than bus been anticipated. 
The report of the Secretary of War is a docu¬ 
ment. of great interest. It consists, first of the 
in ill I ary operations of the year detailed in the 
report of the General in Chief; 2d. the organi¬ 
zation of colored persons into the I nlon service; 
3 d, the exchange of prisoners as fully set forth 
in the letter of Gen. Hitchcock; 4th, ttm opera¬ 
tions under the act of enrolling and calling out 
tho national forces. 
Provost Marshal 
of the Invalid cor 
the country at the commencement of Uio present 
administration. 
Satisfactory and important uh have bcon‘the 
performances of the heroic men of (lie navy at 
this Interesting period, they are scarcely more 
wonderful than the success of our mechanics 
and artisans in the construction of our vessels, 
which has created a new form of naval power. 
Our country lias advantages superior to any 
other nation in resources of iron and timber, 
with inexhaustible quantities of fuel in llio im¬ 
mediate vicinity of both, and ail available and 
in close proximity to navigable waters. With¬ 
out the advantage of public works, the resources 
of the nation have been developed, and its 
power displayed, in the construction of a navy 
of such magnitude, which has, at the very period 
of Its Creation, rendered signal service to the 
Union. 
The increase of the number of seamen in the 
public service, from 7,500 men in tbe spring of 
1861 to about 34,000 at the present time, has been 
accomplished without special legislation or ex¬ 
traordinary bounties to promote that increase. 
It has been found, however, that t,he operation 
of the draft, with the high bounties paid for army 
recruits, is beginning to affect injuriously the 
naval service, and will, If not corrected, be 
likely to impair its efficiency, by detaching sea¬ 
men from their proper vocation, and inducing 
them to enter tbe army. J, therefore, respects 
fully suggest, that, Congress might aid both the 
arrnv and naval service by a definite provision 
on this subject, which would,at the same time be 
equitable to the communities more especially 
interested, f commend to your consideration 
the suggestions of the Secretary of the Navy in 
•eganl to the pulley of fostering and training 
seameu, and also the education of officers and 
engineers for the naval service. 
The Naval Academy is rendering signal ser¬ 
vice in preparing midshipmen for the highly 
responsible duties which to after life they will 
be required to perform. In order that the coun¬ 
try should not be deprived of the proper quota 
of educated officers, lor which legal provision 
has been made at the NftVftl School, the vacan¬ 
cies caused by the neglect or omission to make 
nominations from (he States in insurrection, have 
been filled by the Secretary of the Navy. The 
school is now more full and Complete than at 
any former period, and iu every respect entitled 
lo the favorable consideration of Congress. 
During the past fiscal year the financial condi¬ 
tion of tho Post-Office Department has been one 
of increasing prosperity, and I am gratified in 
being able to stale that the actual postal revenue 
lias nearly equaled the entire expenditure, tho 
tatter amounting to $11,314,8(10.84, and the for¬ 
mer Iu $11 163.789 59, leaving a deficiency of but 
$150,515.25. In I860, the year immediately pre¬ 
ceding the rebellion, tho deficiency amounted to 
$5.656.705 49, the postal receipts being $2,643,- 
722.19 tees than those of 1863. Tho decrease 
since I860 in tho annual amount of transporta- 
tion has been about, 25 per cent., but t he annual 
expenditure on account of the same has been 
reduced 35 per cent. It is manifest, therefore, 
that tho Post-Office Department may become 
self-sustaining in a few years, even with the 
restoration ot the whole service. 
The international conference of postal dele¬ 
gates from the principal countries of Europe 
and America, which was called at the suggestion 
nf the Poet-Master General, met at Paris on the 
11th of May last, and concluded Us deliberations 
on tbo 8th of June. The principle established 
by the conference, us best adapted to facilitate 
postal Intercourse between nations, and as the 
basis of future Postal Conventions, inaugurates 
a general system of charges at reduced rates of 
postage, and cannot fail to produce beneficial 
results. 
1 refer you to tho report of the Secretary of 
the Interior, for useful aud varied information in 
relation to Public Lands, Indian Affairs, Patents, 
Pensions, and other matters of public concern 
pertaining to his Department. The quantity of 
lands disposed of during the last aud the first, 
quarter of tbe present fiscal year, was 3,841 549 
acres, of which 171,911 acres were sold for cash, 
1 156 514 acres were taken up under the home¬ 
stead law, and the residue disposed of under 
laws granting lands for military bounties, for 
railroads, and for other purposes. It also ap¬ 
pears that the sale of the public lands is largely 
on the increase. It has long been a cherished 
Opinion of some of our wisest statesmen, that 
the people ol' tho United States had a higher 
and more enduring interest in the early settle¬ 
ment and substantial coltivatiuu of the public 
lands, than in the amount of direct revenue to 
be derived From the sale of them. This opinion 
has been a controllinginttucnceln shaping legis- 
and 
the Rrttrrtra) dpnartments ot the Quartermaster me gram to me ou»ea«J me uvnuv^;. lands 
General Gommissarv General, Paymaster Gen- within their limits, in order to secure their being 
oral Chief of Eitirfioeers, Chief of Ordnance, reclaimed and rendered lb for cultivation, and 
andSurgeon General. It has appeared impos- thogrants C ^h^ n com°nloh'(S I, wiU 
sidle to make a valuable summary ol this sections of lands, wlitcn, when tornple! , w 
| sw “ j» *■» "v saw 
The duties devolving upon the naval branch Since the tort day of 
the service during the year, and also through- up under its provisions. This 
of tbe service during the year, and also through' 
out the whole of thiB unhappy contest, have 
been discharged with fidelity and eminent suc¬ 
cess. The extensive blockade has been com 
stantly increasing iu efficiency. If the navy bus 
expanded, yet on so long a line ii was so far 
impossible to entirely suppress illicit trade. 
From returns received at tbe Navy Department, 
it. appears that more than 1 000 vessels have been 
captured since the blockade was instituted, and 
that the value of prizes already sent, In for ad¬ 
judication, amounts to oyer $13,000,000. Thy 
naval force of the United States consists at this 
time of 588 vessels completed and in the course 
of completion, and of these 75 are iron-clad or 
armored steamers. 
and the amount, of sales furnish gratifying evi 
deuce of increasing settlements upon t he public 
lands, notwithstanding the great, struggle iu 
which the energies of ibe nation have been en¬ 
gaged. and which fi ts required so large a with¬ 
drawal of our citizen* from their accustomed 
pursuits. I cordially concur in the recommenda- 
iion of the Secretary of the Interior, suggesting 
a modification of the act in favor of those en- 
aagt-d in the military and naval service of the 
United States. I doubt not that Congress will 
cheerfully adopt such measures as will, without 
essentially changing the general features of the 
system, secure to the greatest practical extent its 
