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and prevent their occupation of the amount of the debts for which certain strategic points, which they are receivable, and dues, not would have given them great ad- only to the Confederate and State vantages in the contest-a step Governments, but also to corpowhich was justified not only by rations and individuals, are paythe necessities of self-defence on able in this medium.

A large the part of the Confederate States, amount of it may be circulated at but also by a desire to aid the par. There is every reason to people of Kentucky. It was never believe that the Confederate intended by the Confederate Go- Treasury note is fast becoming vernment to conquer or coerce such a medium. The provision the people of that State, but, on that these notes shall be converthe contrary, it was declared by tible into Confederate Stock, bearour generals that they would ing 8 per cent. interest, at the withdraw their troops if the pleasure of the holder, ensures Federal Government would do them against a depreciation belikewise. Proclamation was also low the value of that stock, and made of the desire to respect the no considerable fall in that value neutrality of Kentucky, and the need be feared so long as the intention to abide by the wishes interest shall be punctually paid. of her people as soon as they The punctual payment of this were free to express their opi- interest has been secured by the nions. These declarations were Act, passed by you at the last approved by me, and I should session, imposing such a rate of regard it as one of the best effects taxation as must provide sufficient of the march of our troops into means for that purpose. Kentucky if it should end in “ If we husband our means, giving to her people liberty of and make a judicious use of our choice and a free opportunity to resources, it would be difficult to decide their own destiny accord- fix a limit to the period during ing to their own will."

which we could conduct a war The other passages of most against the adversary whom we interest were the following: now encounter. The very efforts

“ The condition of the Trea- which he makes to isolate and sury will, doubtless, be a subject invade us must exhaust his of anxious inquiry on your part. means, whilst they serve to comI am happy to say that the finan- plete and diversify the produccial system already adopted has tions of our industrial system. worked well so far, and promises The reconstruction which he good results for the future. To seeks to effect by arms becomes the extent that Treasury notes daily more and more palpably may be issued the Government is impossible. Not only do the enabled to borrow money without causes which induced us to interest, and this facilitates the separate still exist in full force, conduct of the war. This extent but they have been strengthened, is measured by the portion of the and whatever doubt may have Seld of circulation which these lingered in the minds of any notes can be made to occupy. must have been completely disThe proportion of the field thus pelled by subsequent events. occupied depends, again, upon “If, instead of being a dissolu

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tion of a league, it were indeed a private houses and property, and rebellion in which we are en- injuries of the most wanton chagaged, we might find ample vin- racter, even upon non-combatdication for the course we have ants, have marked their forays adopted in the scenes which are along their borders and upon our now being enacted in the United territory. States. Our people now look “ The distinguished gentlemen with contemptuous astonishment whom, with your approval at the on those with whom they have last session, I commissioned to been so recently associated. They represent the Confederacy at cershrink with aversion from the tain foreign Courts, have been bare idea of renewing such a recently seized by the captain of connexion.

a United States ship of war, on " When they see a President board a British steamer, on their making war without the assent voyage from the neutral port of of Congress when they behold Havannah to England. judges threatened because they “ T'he United States have thus maintain the writ of habeas corpus, claimed a general jurisdiction so sacred to freemen—when they over the high seas, and, entering see justice and law trampled a British ship, sailing under its under the armed heel of military country's flag, violated the rights authority, and upright men and of embassy, for the most part held innocent women dragged to dis- sacred, even among barbarians, tant dungeons—when they find by seizing our Ministers while all this tolerated and applauded under the protection and within by a people who had been in the the dominions of a neutral nation. full enjoyment of freedom but a “ These gentlemen were few months ago, they believe that much under the jurisdiction of there must be some radical in- the British Government, upon compatibility between such a that ship and beneath its flag, as people and themselves. With if they had been on its soil; and such a people we may be content a claim on the part of the United to live at peace, but the separa- States to seize them in the streets tion is final, and for the inde- of London would have been as pendence we have asserted we well founded as that to apprehend will accept no alternative. them where they were taken.

The nature of the hostilities Had they been malefactors, and which they have waged against citizens even of the United States, us must be characterized as bar- they could not have been arrested barous whenever it is under on a British ship or on British stood. They have bombarded soil, unless under the express undefended villages, without provisions of a treaty, and accordgiving notice to women and ing to the forms therein provided children to enable them to for the extradition of criminals. escape, and in one instance se- But rights the most sacred seem lected the night as the period to have lost all respect in their when they might surprise them eyes. most effectually while asleep and In conducting this war we unsuspicious of danger. Arson have sought no aid, and proffered and rapine, the destruction of no alliances offensive and defenVOL. CIII.




sive abroad. We have asked for proves completely the utter ina recognized place in the family efficiency of the proclaimed of nations; but, in doing so, we blockade of our coast, and shall have demanded nothing for which direct it to be laid before such we did not offer a fair equivalent. Governments as shall afford us The advantages of intercourse the means of being heard. are mutual among nations, and, “But although we should be in seeking to establish diplomatic benefited by the enforcement of relations, we were only endea- this law, so solemnly declared by vouring to place that intercourse the great Powers of Europe, we under the regulation of public are not dependent on that enlaw.

forcement for the successful “ Perhaps we had the right, prosecution of the war.

As long if we had chosen to exercise it, as hostilities continue, the Conto ask to know whether the prin- federate States will exhibit ciple that blockades to be binding steadily-increasing capacity to must be effectual, so solemnly furnish their troops with food, announced by the great Powers clothing, and arms.

If they of Europe at Paris, is to be gene- should be forced to forego many rally enforced or applied only to of the luxuries and some of the particular parties.

comforts of life, they will at least “When the Confederate States, have the consolation of knowing at your last session, became a that they are thus daily becoming party to the declaration reaffirm more and more independent of ing this principle of international the rest of the world. If, in law, which has been recognized so this process, labour in the Conlong by publicists and Govern- federate States should be graments, we certainly supposed that dually diverted from those great it was to be universally enforced. Southern staples which have The customary law of nations is given life to so much of the made up of their practice rather commerce of mankind into other than their declarations, and if channels, so as to make them such declarations are only to be rival producers instead of proenforced in particular instances at fitable customers, they will not be the pleasure of those who make the only or even the chief losers them, then the commerce of the by this change in the direction world, so far from being placed of their industry. under the regulation of a gene While the war which is ral law, will become subject to waged to take froin us the right the caprice of those who execute of self-government can it or suspend it at will. If such attain that end, it remains to be is to be the course of nations in seen how far it may work a reregard to this law, it is plain volution in the industrial system that it will thus become a rule of the world, which may carry for the weak and not for the suffering to other lands as well strong

as to our own. Feeling that such views must “In the meantime, we shall be taken by the neutral nations continue this struggle in humble of the earth, I have caused dependence upon Providence, the evidence to be collected which from whose searching scrutiny


we cannot conceal the secrets " The Rebel invocation of Foreign of our hearts, and to whose rule

Aid. we confidently submit. For the rest,

“The disloyal citizens of the we shall depend upon

upon United States, who have offered ourselves.

the ruin of our country in return “Liberty is always won where

for the aid and comfort which there exists the unconquerable will to be free; and we have they have invoked abroad, have

received less patronage and enreason to know the strength

couragement than they probably that is given by a conscious sense


If it were just to not only of the magnitude but of the righteousness of our

suppose, as the insurgents have

seemed to assume, that foreign cause."

nations in this case, discarding The 37th Congress of the United States met at Washington gations, would act solely and

all moral, social, and treaty oblion the 2nd of December. Presi. dent Lincoln sent his Message, storation of commerce, including

selfishly for the most speedy refrom which we extract the follow

especially the acquisition of coting as the most important pas ton, those nations appear as yet sages : In the midst of unprece- their object more directly or

not to have seen their way to dented political troubles we have cause of great gratitude to God clearly through the destruction

than through the preservation of for unusual good health and

the Union. If we could dare to most abundant harvests.

believe that foreign nations are “ You will not be surprised to

actuated by no higher principle learn that, in the peculiar exi

than this, I am quite sure a segencies of the times, our inter

cond argument could be made to course with foreign nations has

show them that they can reach been attended with profound so their aim more readily and easily licitude, chiefly turning upon our own domestic affairs. A disloyal than by giving encouragement to

by aiding to crush this rebellion portion of the American people it. have, during the whole year, been engaged in an attempt to divide The Question of International and destroy the Union. A nation

Commerce. which endures factious domestic “ The principal lever relied on divisions is exposed to disrespect by the insurgents for exciting abroad, and one party, if not both, foreign nations to hostility against is sure, sooner or later, to invoke us, as already intimated, is the foreign intervention. Nations embarrassment of commerce. thus tempted to interfere are not Those nations, however, not imalways able to resist the counsels probably saw from the first that of seeming expediency and un it was the Union which made as generous ambition, although mea well our foreign as our domestic sures adopted under such in

commerce. They can scarcely fluences seldom fail to be unfortu- have failed to perceive that the nate and injurious to those adopt. effort for disunion produces the

existing difficulty, and that one

ing them.

strong nation promises more du- The Acts of Congress to be con. rable peace, and a more exten- densed into one or two volumes. sive, valuable, and reliable commerce, than can the same nation “I am informed by some broken into hostile fragments. whose opinions I respect that all

the Acts of Congress now in " The Revenue Receipts to June force, and of a permanent and last,

general nature, might be revised “ The revenue from all sources,

and rewritten, so as to be emincluding loans, for the financial braced in one volume, or at least year ending on the 30th of June, two volumes, of ordinary and 1861, was 86,835,900 dollars convenient size, and I respect27 cents, and the expenditure fully recommend to Congress to for the same period, including consider the subject, and, if my payments on account of the suggestion be approved, to de public debt, were 84,578,034 dol- vise some plan as to their wisdom lars 47 cents, leaving a balance shall seem most proper for the in the Treasury, on the 1st of attainment of the end proposed. July, of 2,257,065 dollars 80 cents. For the first quarter of Civil Justice suppressed by the the financial year ending on the

Rebellion. 30th of September, 1861, the receipts from all sources, including “ One of the unavoidable conthe balance of July 1st, were sequences of the present insur102,532,509 dollars 27 cents, and rection is the entire suppression the expenses 98,239,733 dollars in many places of all ordinary 9 cents, leaving a balance on the means of administering civil jus1st of October, 1861, of 4,292,776 tice by the officers and in the dollars 18 cents.

forms of existing law. This is " The Estimates for the forthcoming all the insurgent States; and as

the case, in whole or in part, in

our armies advance upon and “ Estimates for the remaining take possession of parts of these three-quarters of the year, and States the practical evil becomes for the financial year 1863, to- more apparent. There are no gether with his views of the ways courts nor officers to whom the and means for meeting the de- citizens of other States may apply mands contemplated by them for the enforcement of their lawwill be submitted to Congress by ful claims against citizens of the the Secretary of the Treasury. insurgent States, and there is a It is gratifying to know that the vast amount of debt constituting expenses made necessary by the such claims. Some have estirebellion are not beyond the re- mated it as high as 200,000,000 sources of the loyal people, and dollars, due in large part from to believe that the same patriot- insurgents in open rebellion to ism which has thus far sustained loyal citizens who are even now the Government will continue to making great sacrifices in the sustain it till peace and union discharge of their patriotic duty shall again bless the land. to support the Government.

year, dc.

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