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FROM HIS MESSAGE TO CONGRESS AT ITS REGULAR

SESSION.

December 3, 1861.

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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 injurious and unfortunate to those adopting them.

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"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. . . .

"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 a more durable peace and a more extensive, valuable, and reliable commerce than can the same nation broken into hostile fragments.

"... 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 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 should not degenerate into a violent and remorseless revolutionary struggle.

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". . . The last ray of hope for preserving the Union peaceably, expired at the assault on Fort Sumter. What was painfully uncertain then is much better defined and more distinct now; and the progress of events is plainly in the right direction.

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". . . 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 docu

ments 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 laboured 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 favour 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, labour, in the structure of government. It is assumed that labour is available only in connection with capital; that nobody labours, unless somebody else, owning capital, somehow, by the use of it, induces him to labour. This assumed, it is next considered whether it is best that capital shall hire labourers, and thus induce them to work by their own consent, or buy them and drive them to it without their consent. Having proceeded

thus far, it is naturally concluded that all labourers are either hired labourers, or what we call slaves. And further, it is assumed that whoever is once a hired labourer is fixed in that condition for life.

"Now, there is no such relation between capital and labour as assumed, nor is there any such thing as a free man being fixed for life in the condition of a hired labourer. Both these assumptions are false, and all inferences from them are groundless.

"Labour is prior to and independent of capital. Capital is only the fruit of labour, and could never have existed if labour had not first existed. Labour 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 labour and capital, producing mutual benefits. The error is in assuming that the whole labour of the community exists within that relation. A few men own capital, and that few avoid labour themselves, and with their capital hire or buy another few to labour 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 colours, are neither slaves nor masters; while

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