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President[ Abraham Lincoln

         Date[ December 3, 1861


Fellow-Citizens of the Senate and House of Representatives:


In the midst of unprecedented political troubles we have cause of great

gratitude to God for unusual good health and most abundant harvests.


You will not be surprised to learn that in the peculiar exigencies of

the times our intercourse with foreign nations has been attended with

profound solicitude, chiefly turning upon our own domestic affairs.


A disloyal portion of the American people have during the whole year

been engaged in an attempt to divide and destroy the Union. A nation

which endures factious domestic division is exposed to disrespect

abroad, and one party, if not both, is sure sooner or later to invoke

foreign intervention.


Nations thus tempted to interfere are not always able to resist the

counsels of seeming expediency and ungenerous ambition, although

measures adopted under such influences seldom fail to be unfortunate

and injurious to those adopting them.


The disloyal citizens of the United States who have offered the ruin of

our country in return for the aid and comfort which they have invoked

abroad have received less patronage and encouragement than they

probably expected. If it were just to suppose, as the insurgents have

seemed to assume, that foreign nations in this case, discarding all

moral, social, and treaty obligations, would act solely and selfishly

for the most speedy restoration of commerce, including especially the

acquisition of cotton, those nations appear as yet not to have seen

their way to their object more directly or clearly through the

destruction than through the preservation of the Union. If we could

dare to believe that foreign nations are actuated by no higher

principle than this, I am quite sure a sound argument could be made to

show them that they can reach their aim more readily and easily by

aiding to crush this rebellion than by giving encouragement to it.


The principal lever relied on by the insurgents for exciting foreign

nations to hostility against us, as already intimated, is the

embarrassment of commerce. Those nations, however, not improbably saw

from the first that it was the Union which made as well our foreign as

our domestic commerce. They can scarcely have failed to perceive that

the effort for disunion produces the existing difficulty, and that one

strong nation promises more durable peace and a more extensive,

valuable, and reliable commerce than can the same nation broken into

hostile fragments.


It is not my purpose to review our discussions with foreign states,

because, whatever might be their wishes or dispositions, the integrity

of our country and the stability of our Government mainly depend not

upon them, but on the loyalty, virtue, patriotism, and intelligence of

the American people. The correspondence itself, with the usual

reservations, is herewith submitted.


I venture to hope it will appear that we have practiced prudence and

liberality toward foreign powers, averting causes of irritation and

with firmness maintaining our own rights and honor.


Since, however, it is apparent that here, as in every other state,

foreign dangers necessarily attend domestic difficulties, I recommend

that adequate and ample measures be adopted for maintaining the public

defenses on every side. While under this general recommendation

provision for defending our seacoast line readily occurs to the mind, I

also in the same connection ask the attention of Congress to our great

lakes and rivers. It is believed that some fortifications and depots of

arms and munitions, with harbor and navigation improvements, all at

well-selected points upon these, would be of great importance to the

national defense and preservation. I ask attention to the views of the

Secretary of War, expressed in his report, upon the same general

subject.  I deem it of importance that the loyal regions of east

Tennessee and western North Carolina should be connected with Kentucky

and other faithful parts of the Union by railroad. I therefore

recommend, as a military measure, that Congress provide for the

construction of such road as speedily as possible. Kentucky no doubt

will cooperate, and through her legislature make the most judicious

selection of a line. The northern terminus must connect with some

existing railroad, and whether the route shall be from Lexington or

Nicholasville to the Cumberland Gap, or from Lebanon to the Tennessee

line, in the direction of Knoxville, or on some still different line,

can easily be determined. Kentucky and the General Government

cooperating, the work can be completed in a very short time, and when

done it will be not only of vast present usefulness, but also a

valuable permanent improvement, worth its cost in all the future.


Some treaties, designed chiefly for the interests of commerce, and

having no grave political importance, have been negotiated, and will be

submitted to the Senate for their consideration.


Although we have failed to induce some of the commercial powers to

adopt a desirable melioration of the rigor of maritime war, we have

removed all obstructions from the way of this humane reform except such

as are merely of temporary and accidental occurrence.


I invite your attention to the correspondence between Her Britannic

Majesty's minister accredited to this Government and the Secretary of

State relative to the detention of the British ship Perthshire in June

last by the United States steamer Massachusetts for a supposed breach

of the blockade. As this detention was occasioned by an obvious

misapprehension of the facts, and as justice requires that we should

commit no belligerent act not rounded in strict right as sanctioned by

public law, I recommend that an appropriation be made to satisfy the

reasonable demand of the owners of the vessel for her detention.


I repeat the recommendation of my predecessor in his annual message to

Congress in December last in regard to the disposition of the surplus

which will probably remain after satisfying the claims of American

citizens against China, pursuant to the awards of the commissioners

under the act of the 3d of March, 1859. If, however, it should not be

deemed advisable to carry that recommendation into effect, I would

suggest that authority be given for investing the principal, over the

proceeds of the surplus referred to, in good securities, with a view to

the satisfaction of such other just claims of our citizens against

China as are not unlikely to arise hereafter in the course of our

extensive trade with that Empire.


By the act of the 5th of August last Congress authorized the President

to instruct the commanders of suitable vessels to defend themselves

against and to capture pirates. This authority has been exercised in a

single instance only. For the more effectual protection of our

extensive and valuable commerce in the Eastern seas especially, it

seems to me that it would also be advisable to authorize the commanders

of sailing vessels to recapture any prizes which pirates may make of

United States vessels and their cargoes, and the consular courts now

established by law in Eastern countries to adjudicate the cases in the

event that this should not be objected to by the local authorities.


If any good reason exists why we should persevere longer in withholding

our recognition of the independence and sovereignty of Hayti and

Liberia, I am unable to discern it. Unwilling, however, to inaugurate a

novel policy in regard to them without the approbation of Congress, I

submit for your consideration the expediency of an appropriation for

maintaining a charge d'affaires near each of those new States. It does

not admit of doubt that important commercial advantages might be

secured by favorable treaties with them.


The operations of the Treasury during the period which has elapsed

since your adjournment have been conducted with signal success. The

patriotism of the people has placed at the disposal of the Government

the large means demanded by the public exigencies. Much of the national

loan has been taken by citizens of the industrial classes, whose

confidence in their country's faith and zeal for their country's

deliverance from present peril have induced them to contribute to the

support of the Government the whole of their limited acquisitions. This

fact imposes peculiar obligations to economy in disbursement and energy

in action.


The revenue from all sources, including loans, for the financial year

ending on the 30th of June, 1861, was $86,835,900.27, and the

expenditures for the same period, including payments on account of the

public debt, were $84,578,834.47, leaving a balance in the Treasury on

the 1st of July of 52,257,065.80. For the first quarter of the

financial year ending on the 30th of September, 1861, the receipts from

all sources, including the balance of the 1st of July, were

$102,532,509.27, and the expenses $98,239,733.09, leaving a balance on

the 1st of October, 1861, of $4,292,776.18.


Estimates for the remaining three quarters of the year and for the

financial year 1863, together with his views of ways and means for

meeting the demands contemplated by them, will be submitted to Congress

by the Secretary of the Treasury. It is gratifying to know that the

expenditures made necessary by the rebellion are not beyond the

resources of the loyal people, and to believe that the same patriotism

which has thus far sustained the Government will continue to sustain it

till peace and union shall again bless the land.


I respectfully refer to the report of the Secretary of War for

information respecting the numerical strength of the Army and for

recommendations having in view an increase of its efficiency and the

well-being of the various branches of the service intrusted to his

care. It is gratifying to know that the patriotism of the people has

proved equal to the occasion, and that the number of troops tendered

greatly exceeds the force which Congress authorized me to call into the

field.


I refer with pleasure to those portions of his report which make

allusion to the creditable degree of discipline already attained by our

troops and to the excellent sanitary condition of the entire Army.


The recommendation of the Secretary for an organization of the militia

upon a uniform basis is a subject of vital importance to the future

safety of the country, and is commended to the serious attention of

Congress.


The large addition to the Regular Army, in connection with the

defection that has so considerably diminished the number of its

officers, gives peculiar importance to his recommendation for

increasing the corps of cadets to the greatest capacity of the Military

Academy.


By mere omission, I presume, Congress has failed to provide chaplains

for hospitals occupied by volunteers. This subject was brought to my

notice, and I was induced to draw up the form of a letter, one copy of

which, properly addressed, has been delivered to each of the persons,

and at the dates respectively named and stated in a schedule,

containing also the form of the letter marked A, and herewith

transmitted.


These gentlemen, I understand, entered upon the duties designated at

the times respectively stated in the schedule, and have labored

faithfully therein ever since. I therefore recommend that they be

compensated at the same rate as chaplains in the Army. I further

suggest that general provision be made for chaplains to serve at

hospitals, as well as with regiments.


The report of the Secretary of the Navy presents in detail the

operations of that branch of the service, the activity and energy which

have characterized its administration, and the results of measures to

increase its efficiency and power. Such have been the additions, by

construction and purchase, that it may almost be said a navy has been

created and brought into service since our difficulties commenced.


Besides blockading our extensive coast, squadrons larger than ever

before assembled under our flag have been put afloat and performed

deeds which have increased our naval renown.


I would invite special attention to the recommendation of the Secretary

for a more perfect organization of the Navy by introducing additional

grades in the service.


The present organization is defective and unsatisfactory, and the

suggestions submitted by the Department will, it is believed, if

adopted, obviate the difficulties alluded to, promote harmony, and

increase the efficiency of the Navy.


There are three vacancies on the bench of the Supreme Court--two by the

decease of Justices Daniel and McLean and one by the resignation of

Justice Campbell. I have so far forborne making nominations to fill

these vacancies for reasons which I will now state. Two of the outgoing

judges resided within the States now overrun by revolt, so that if

successors were appointed in the same localities they could not now

serve upon their circuits; and many of the most competent men there

probably would not take the personal hazard of accepting to serve, even

here, upon the Supreme bench. I have been unwilling to throw all the

appointments northward, thus disabling myself from doing justice to the

South on the return of peace; although I may remark that to transfer to

the North one which has heretofore been in the South would not, with

reference to territory and population, be unjust.


During the long and brilliant judicial career of Judge McLean his

circuit grew into an empire altogether too large for any one judge to

give the courts therein more than a nominal attendance--rising in

population from 1,470,018 in 1830 to 6,151,405 in 1860.


Besides this, the country generally has outgrown our present judicial

system. If uniformity was at all intended, the system requires that all

the States shall be accommodated with circuit courts, attended by

Supreme judges, while, in fact, Wisconsin, Minnesota, Iowa, Kansas,

Florida, Texas, California, and Oregon have never had any such courts.

Nor can this well be remedied without a change in the system, because

the adding of judges to the Supreme Court, enough for the accommodation

of all parts of the country with circuit courts, would create a court

altogether too numerous for a judicial body of any sort. And the evil,

if it be one, will increase as new States come into the Union. Circuit

courts are useful or they are not useful. If useful, no State should be

denied them; if not useful, no State should have them. Let them be

provided for all or abolished as to all.


Three modifications occur to me, either of which, I think, would be an

improvement upon our present system. Let the Supreme Court be of

convenient number in every event; then, first, let the whole country be

divided into circuits of convenient size, the Supreme judges to serve

in a number of them corresponding to their own number, and independent

circuit judges be provided for all the rest; or, secondly, let the

Supreme judges be relieved from circuit duties and circuit judges

provided for all the circuits; or, thirdly, dispense with circuit

courts altogether, leaving the judicial functions wholly to the

district courts and an independent Supreme Court.


I respectfully recommend to the consideration of Congress the present

condition of the statute laws, with the hope that Congress will be able

to find an easy remedy for many of the inconveniences and evils which

constantly embarrass those engaged in the practical administration of

them. Since the organization of the Government Congress has enacted

some 5,000 acts and joint resolutions, which fill more than 6,000

closely printed pages and are scattered through many volumes. Many of

these acts have been drawn in haste and without sufficient caution, so

that their provisions are often obscure in themselves or in conflict

with each other, or at least so doubtful as to render it very difficult

for even the best-informed persons to ascertain precisely what the

statute law really is.


It seems to me very important that the statute laws should be made as

plain and intelligible as possible, and be reduced to as small a

compass as may consist with the fullness and precision of the will of

the Legislature and the perspicuity of its language. This well done

would, I think, greatly facilitate the labors of those whose duty it is

to assist in the administration of the laws, and would be a lasting

benefit to the people, by placing before them in a more accessible and

intelligible form the laws which so deeply concern their interests and

their duties.


I am informed by some whose opinions I respect that all the acts of

Congress now in force and of a permanent and general nature might be

revised and rewritten so as to be embraced in one volume (or at most

two volumes) of ordinary and convenient size; and I respectfully

recommend to Congress to consider of the subject, and if my suggestion

be approved to devise such plan as to their wisdom shall seem most

proper for the attainment of the end proposed.


One of the unavoidable consequences of the present insurrection is the

entire suppression in many places of all the ordinary means of

administering civil justice by the officers and in the forms of

existing law. This is the case, in whole or in part, in all the

insurgent States; and as our armies advance upon and take possession of

parts of those States the practical evil becomes more apparent. There

are no courts nor officers to whom the citizens of other States may

apply for the enforcement of their lawful claims against citizens of

the insurgent States, and there is a vast amount of debt constituting

such claims. Some have estimated it as high as $200,000,000, due in

large part from insurgents in open rebellion to loyal citizens who are

even now making great sacrifices in the discharge of their patriotic

duty to support the Government.


Under these circumstances I have been urgently solicited to establish

by military power courts to administer summary justice in such cases I

have thus far declined to do it, not because I had any doubt that the

end proposed--the collection of the debts--was just and right in

itself, but because I have been unwilling to go beyond the pressure of

necessity in the unusual exercise of power. But the powers of Congress,

I suppose, are equal to the anomalous occasion, and therefore I refer

the whole matter to Congress, with the hope that a plan may be devised

for the administration of justice in all such parts of the insurgent

States and Territories as may be under the control of this Government,

whether by a voluntary return to allegiance and order or by the power

of our arms; this, however, not to be a permanent institution, but a

temporary substitute, and to cease as soon as the ordinary courts can

be reestablished in peace.


It is important that some more convenient means should be provided, if

possible, for the adjustment of claims against the Government,

especially in view of their increased number by reason of the war. It

is as much the duty of Government to render prompt justice against

itself in favor of citizens as it is to administer the same between

private individuals. The investigation and adjudication of claims in

their nature belong to the judicial department. Besides, it is apparent

that the attention of Congress will be more than usually engaged for

some time to come with great national questions. It was intended by the

organization of the Court of Claims mainly to remove this branch of

business from the halls of Congress: but while the court has proved to

be an effective and valuable means of investigation, it in great degree

fails to effect the object of its creation for want of power to make

its judgments final.


Fully aware of the delicacy, not to say the danger, of the subject, I

commend to your careful consideration whether this power of making

judgments final may not properly be given to the court, reserving the

right of appeal on questions of law to the Supreme Court, with such

other provisions as experience may have shown to be necessary.


I ask attention to the report of the Postmaster-General, the following

being a summary statement of the condition of the Department:


The revenue from all sources during the fiscal year ending June 30,

1861, including the annual permanent appropriation of $700,000 for the

transportation of "free mail matter," was $9,049,296.40, being about 2

per cent less than the revenue for 1860.


The expenditures were $13,606,759.11, showing a decrease of more than 8

per cent as compared with those of the previous year and leaving an

excess of expenditure over the revenue for the last fiscal year of

$4,557,462.71.


The gross revenue for the year ending June 30, 1863, is estimated at an

increase of 4 per cent on that of 1861, making $8,683,000, to which

should be added the earnings of the Department in carrying free matter,

viz, $700,000, making $9,383,000.


The total expenditures for 1863 are estimated at $12,528,000, leaving

an estimated deficiency of $3,145,000 to be supplied from the Treasury

in addition to the permanent appropriation.


The present insurrection shows, I think, that the extension of this

District across the Potomac River at the time of establishing the

capital here was eminently wise, and consequently that the

relinquishment of that portion of it which lies within the State of

Virginia was unwise and dangerous. I submit for your consideration the

expediency of regaining that part of the District and the restoration

of the original boundaries thereof through negotiations with the State

of Virginia.


The report of the Secretary of the Interior, with the accompanying

documents, exhibits the condition of the several branches of the public

business pertaining to that Department. The depressing influences of

the insurrection have been specially felt in the operations of the

Patent and General Land Offices. The cash receipts from the sales of

public lands during the past year have exceeded the expenses of our

land system only about $200,000. The sales have been entirely suspended

in the Southern States, while the interruptions to the business of the

country and the diversion of large numbers of men from labor to

military service have obstructed settlements in the new States and

Territories of the Northwest.


The receipts of the Patent Office have declined in nine months about

$100,000, rendering a large reduction of the force employed necessary

to make it self-sustaining.


The demands upon the Pension Office will be largely increased by the

insurrection. Numerous applications for pensions, based upon the

casualties of the existing war, have already been made. There is reason

to believe that many who are now upon the pension rolls and in receipt

of the bounty of the Government are in the ranks of the insurgent army

or giving them aid and comfort. The Secretary of the Interior has

directed a suspension of the payment of the pensions of such persons

upon proof of their disloyalty. I recommend that Congress authorize

that officer to cause the names of such persons to be stricken from the

pension rolls.


The relations of the Government with the Indian tribes have been

greatly disturbed by the insurrection, especially in the southern

superintendency and in that of New Mexico. The Indian country south of

Kansas is in the possession of insurgents from Texas and Arkansas. The

agents of the United States appointed since the 4th of March for this

superintendency have been unable to reach their posts, while the most

of those who were in office before that time have espoused the

insurrectionary cause, and assume to exercise the powers of agents by

virtue of commissions from the insurrectionists. It has been stated in

the public press that a portion of those Indians have been organized as

a military force and are attached to the army of the insurgents.

Although the Government has no official information upon this subject,

letters have been written to the Commissioner of Indian Affairs by

several prominent chiefs giving assurance of their loyalty to the

United States and expressing a wish for the presence of Federal troops

to protect them. It is believed that upon the repossession of the

country by the Federal forces the Indians will readily cease all

hostile demonstrations and resume their former relations to the

Government.


Agriculture, confessedly the largest interest of the nation, has not a

department nor a bureau, but a clerkship only, assigned to it in the

Government. While it is fortunate that this great interest is so

independent in its nature as to not have demanded and extorted more

from the Government, I respectfully ask Congress to consider whether

something more can not be given voluntarily with general advantage.


Annual reports exhibiting the condition of our agriculture, commerce,

and manufactures would present a fund of information of great practical

value to the country. While I make no suggestion as to details, I

venture the opinion that an agricultural and statistical bureau might

profitably be organized.


The execution of the laws for the suppression of the African slave

trade has been confided to the Department of the Interior. It is a

subject of gratulation that the efforts which have been made for the

suppression of this inhuman traffic have been recently attended with

unusual success. Five vessels being fitted out for the slave trade have

been seized and condemned. Two mates of vessels engaged in the trade

and one person in equipping a vessel as a slaver have been convicted

and subjected to the penalty of fine and imprisonment, and one captain,

taken with a cargo of Africans on board his vessel, has been convicted

of the highest grade of offense under our laws, the punishment of which

is death.


The Territories of Colorado, Dakota, and Nevada, created by the last

Congress, have been organized, and civil administration has been

inaugurated therein under auspices especially gratifying when it is

considered that the leaven of treason was found existing in some of

these new countries when the Federal officers arrived there.


The abundant natural resources of these Territories, with the security

and protection afforded by organized government, will doubtless invite

to them a large immigration when peace shall restore the business of

the country to its accustomed channels. I submit the resolutions of the

legislature of Colorado, which evidence the patriotic spirit of the

people of the Territory. So far the authority of the United States has

been upheld in all the Territories, as it is hoped it will be in the

future. I commend their interests and defense to the enlightened and

generous care of Congress.


I recommend to the favorable consideration of Congress the interests of

the District of Columbia. The insurrection has been the cause of much

suffering and sacrifice to its inhabitants, and as they have no

representative in Congress that body should not overlook their just

claims upon the Government.


At your late session a joint resolution was adopted authorizing the

President to take measures for facilitating a proper representation of

the industrial interests of the United States at the exhibition of the

industry of all nations to be holden at London in the year 1862. I

regret to say I have been unable to give personal attention to this

subject--a subject at once so interesting in itself and so extensively

and intimately connected with the material prosperity of the world.

Through the Secretaries of State and of the Interior a plan or system

has been devised and partly matured, and which will be laid before you.


Under and by virtue of the act of Congress entitled "An act to

confiscate property used for insurrectionary purposes," approved August

6, 1861, the legal claims of certain persons to the labor and service

of certain other persons have become forfeited, and numbers of the

latter thus liberated are already dependent on the United States and

must be provided for in some way. Besides this, it is not impossible

that some of the States will pass similar enactments for their own

benefit respectively, and by operation of which persons of the same

class will be thrown upon them for disposal. In such case I recommend

that Congress provide for accepting such persons from such States,

according to some mode of valuation, in lieu, pro tanto, of direct

taxes, or upon some other plan to be agreed on with such States

respectively; that such persons, on such acceptance by the General

Government, be at once deemed free, and that in any event steps be

taken for colonizing both classes (or the one first mentioned if the

other shall not be brought into existence) at some place or places in a

climate congenial to them. It might be well to consider, too, whether

the free colored people already in the United States could not, so far

as individuals may desire, be included in such colonization.


To carry out the plan of colonization may involve the acquiring of

territory, and also the appropriation of money beyond that to be

expended in the territorial acquisition. Having practiced the

acquisition of territory for nearly sixty years, the question of

constitutional power to do so is no longer an open one with us. The

power was questioned at first by Mr. Jefferson, who, however, in the

purchase of Louisiana, yielded his scruples on the plea of great

expediency. If it be said that the only legitimate object of acquiring

territory is to furnish homes for white men, this measure effects that

object, for the emigration of colored men leaves additional room for

white men remaining or coming here. Mr. Jefferson, however, placed the

importance of procuring Louisiana more on political and commercial

grounds than on providing room for population.


On this whole proposition, including the appropriation of money with

the acquisition of territory, does not the expediency amount to

absolute necessity--that without which the Government itself can not be

perpetuated?


The war continues. In considering the policy to be adopted for

suppressing the insurrection I have been anxious and careful that the

inevitable conflict for this purpose shall not degenerate into a

violent and remorseless revolutionary struggle. I have therefore in

every case thought it proper to keep the integrity of the Union

prominent as the primary object of the contest on our pan, leaving all

questions which are not of vital military importance to the more

deliberate action of the Legislature.


In the exercise of my best discretion I have adhered to the blockade of

the ports held by the insurgents, instead of putting in force by

proclamation the law of Congress enacted .at the late session for

closing those ports.


So also, obeying the dictates of prudence, as well as the obligations

of law, instead of transcending I have adhered to the act of Congress

to confiscate property used for insurrectionary purposes. If a new law

upon the same subject shall be proposed, its propriety will be duly

considered. The Union must be preserved, and hence all indispensable

means must be employed. We should not be in haste to determine that

radical and extreme measures, which may reach the loyal as well as the

disloyal, are indispensable.


The inaugural address at the beginning of the Administration and the

message to Congress at the late special session were both mainly

devoted to the domestic controversy out of which the insurrection and

consequent war have sprung. Nothing now occurs to add or subtract to or

from the principles or general purposes stated and expressed in those

documents.


The last ray of hope for preserving the Union peaceably expired at the

assault upon Fort Sumter, and a general review of what has occurred

since may not be unprofitable. What was painfully uncertain then is

much better defined and more distinct now, and the progress of events

is plainly in the right direction. The insurgents confidently claimed a

strong support from north of Mason and Dixon's line, and the friends of

the Union were not free from apprehension on the point. This, however,

was soon settled definitely, and on the right side. South of the line

noble little Delaware led off right from the first. Maryland was made

to seem against the Union. Our soldiers were assaulted, bridges were

burned, and railroads torn up within her limits, and we were many days

at one time without the ability to bring a single regiment over her

soil to the capital. Now her bridges and railroads are repaired and

open to the Government; she already gives seven regiments to the cause

of the Union, and none to the enemy; and her people, at a regular

election, have sustained the Union by a larger majority and a larger

aggregate vote than they ever before gave to any candidate or any

question. Kentucky, too, for some time in doubt, is now decidedly and,

I think, unchangeably ranged on the side of the Union. Missouri is

comparatively quiet, and, I believe, can not again be overrun by the

insurrectionists. These three States of Maryland, Kentucky, and

Missouri, neither of which would promise a single soldier at first,

have now an aggregate of not less than 40,000 in the field for the

Union, while of their citizens certainly not more than a third of that

number, and they of doubtful whereabouts and doubtful existence, are in

arms against us. After a somewhat bloody struggle of months, winter

closes on the Union people of western Virginia, leaving them masters of

their own country.


An insurgent force of about 1,500, for months dominating the narrow

peninsular region constituting the counties of Accomac and Northampton,

and known as Eastern Shore of Virginia, together with some contiguous

parts of Maryland, have laid down their arms, and the people there have

renewed their allegiance to and accepted the protection of the old

flag. This leaves no armed insurrectionist north of the Potomac or east

of the Chesapeake.


Also we have obtained a footing at each of the isolated points on the

southern coast of Hatteras, Port Royal, Tybee Island (near Savannah),

and Ship Island; and we likewise have some general accounts of popular

movements in behalf of the Union in North Carolina and Tennessee.


These things demonstrate that the cause of the Union is advancing

steadily and certainly southward.


Since your last adjournment Lieutenant-General Scott has retired from

the head of the Army. During his long life the nation has not been

unmindful of his merit; yet on calling to mind how faithfully, ably,

and brilliantly he has served the country, from a time far back in our

history, when few of the now living had been born, and thenceforward

continually, I can not but think we are still his debtors. I submit,

therefore, for your consideration what further mark of recognition is

due to him, and to ourselves as a grateful people.


With the retirement of General Scott came the Executive duty of

appointing in his stead a General in Chief of the Army. It is a

fortunate circumstance that neither in council nor country was there,

so far as I know, any difference of opinion as to the proper person to

be selected. The retiring chief repeatedly expressed his judgment in

favor of General McClellan for the position, and in this the nation

seemed to give a unanimous concurrence. The designation of General

McClellan is therefore in considerable degree the selection of the

country as well as of the Executive, and hence there is better reason

to hope there will be given him the confidence and cordial support thus

by fair implication promised, and without which he can not with so full

efficiency serve the country.


It has been said that one bad general is better than two good ones, and

the saying is true if taken to mean no more than that an army is better

directed by a single mind, though inferior, than by two superior ones

at variance and cross-purposes with each other.


And the same is true in all joint operations wherein those engaged can

have none but a common end in view and can differ only as to the choice

of means. In a storm at sea no one on board can wish the ship to sink,

and yet not unfrequently all go down together because too many will

direct and no single mind can be allowed to control.


It continues to develop that the insurrection is largely, if not

exclusively, a war upon the first principle of popular government--the

rights of the people. Conclusive evidence of this is found in the most

grave and maturely considered public documents, as well as in the

general tone of the insurgents. In those documents we find the

abridgment of the existing right of suffrage and the denial to the

people of all right to participate in the selection of public officers

except the legislative boldly advocated, with labored arguments to

prove that large control of the people in government is the source of

all political evil. Monarchy itself is sometimes hinted at as a

possible refuge from the power of the people.


In my present position I could scarcely be justified were I to omit

raising a warning voice against this approach of returning despotism.


It is not needed nor fitting here that a general argument should be

made in favor of popular institutions, but there is one point, with its

connections, not so hackneyed as most others, to which I ask a brief

attention. It is the effort to place capital on an equal footing with,

if not above, labor in the structure of government. It is assumed that

labor is available only in connection with capital; that nobody labors

unless somebody else, owning capital, somehow by the use of it induces

him to labor. This assumed, it is next considered whether it is best

that capital shall hire laborers, and thus induce them to work by their

own consent, or buy them and drive them to it without their consent.

Having proceeded so far, it is naturally concluded that all laborers

are either hired laborers or what we call slaves. And further, it is

assumed that whoever is once a hired laborer is fixed in that condition

for life.


Now there is no such relation between capital and labor as assumed, nor

is there any such thing as a free man being fixed for life in the

condition of a hired laborer. Both these assumptions are false, and all

inferences from them are groundless.


Labor is prior to and independent of capital. Capital is only the fruit

of labor, and could never have existed if labor had not first existed.

Labor is the superior of capital, and deserves much the higher

consideration. Capital has its rights, which are as worthy of

protection as any other rights. Nor is it denied that there is, and

probably always will be, a relation between labor and capital producing

mutual benefits. The error is in assuming that the whole labor of

community exists within that relation. A few men own capital, and that

few avoid labor themselves, and with their capital hire or buy another

few to labor for them. A large majority belong to neither

class--neither work for others nor have others working for them. In

most of the Southern States a majority of the whole people of all

colors are neither slaves nor masters, while in the Northern a large

majority are neither hirers nor hired. Men, with their families--wives,

sons, and daughters--work for themselves on their farms, in their

houses, and in their shops, taking the whole product to themselves, and

asking no favors of capital on the one hand nor of hired laborers or

slaves on the other. It is not forgotten that a considerable number of

persons mingle their own labor with capital; that is, they labor with

their own hands and also buy or hire others to labor for them; but this

is only a mixed and not a distinct class. No principle stated is

disturbed by the existence of this mixed class.


Again, as has already been said, there is not of necessity any such

thing as the free hired laborer being fixed to that condition for life.

Many independent men everywhere in these States a few years back in

their lives were hired laborers. The prudent, penniless beginner in the

world labors for wages awhile, saves a surplus with which to buy tools

or land for himself, then labors on his own account another while, and

at length hires another new beginner to help him. This is the just and

generous and prosperous system which opens the way to all, gives hope

to all, and consequent energy and progress and improvement of condition

to all. No men living are more worthy to be trusted than those who toil

up from poverty; none less inclined to take or touch aught which they

have not honestly earned. Let them beware of surrendering a political

power which they already possess, and which if surrendered will surely

be used to close the door of advancement against such as they and to

fix new disabilities and burdens upon them till all of liberty shall be

lost.


From the first taking of our national census to the last are seventy

years, and we find our population at the end of the period eight times

as great as it was at the beginning. The increase of those other things

which men deem desirable has been even greater. We thus have at one

view what the popular principle, applied to Government through the

machinery, of the States and the Union, has produced in a given time,

and also what if firmly maintained it promises for the future. There

are already among us those who if the Union be preserved will live to

see it contain 250,000,000. The struggle of to-day is not altogether

for to-day; it is for a vast future also. With a reliance on Providence

all the more firm and earnest, let us proceed in the great task which

events have devolved upon us.


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