Georgia-J. W. Clift, Nelson Tift, W. P. Ed-Michigan-Fernando C. Beaman, Charles Upson,
wards, Samuel F. Gove, C. H. Prince, (vacan-
cy,) P. M. B. Young.
Alabama-Francis W. Kellogg, Charles W.
Buckley, Benjamin W. Norris, Charles W.
Pierce, John B. Callis, Thomas Haughey.
Louisiana-J. Hale Sypher, (vacancy.) Joseph
P. Newsham, Michel Vidal, W. Jasper Black-

† In place of Darwin A. Finney, deceased.

XXXVIII.

PRESIDENT JOHNSON'S LAST ANNUAL MESSAGE,

DECEMBER 7, 1868.

The following extracts relate to reconstruction | ganized condition under the various laws which and other controverted subjects:

the timely revocation of injurious and oppressive measures is the greatest good that can be conferred upon a nation. The legislator or ruler who has the wisdom and magnanimity to retrace his steps, when convinced of error, will sooner or later be rewarded with the respect and gratitude of an intelligent and patriotic people.

tion as near completion as was within the scope of its authority, and the nation was encouraged by the prospect of an early and satisfactory adjustment of all its difficulties. Congress, however, intervened, and, refusing to perfect the work so nearly consummated, declined to admit members from the unrepresented States, adopted a series of measures which arrested the progress of res. Our own history, although embracing a period toration, frustrated all that had been so successless than a century, affords abundant proof that fully accomplished, and after three years of most, if not all, of our domestic troubles are agitation and strife has left the country further directly traceable to violations of the organic from the attainment of union and fraternal law and excessive legislation. The most striking feeling than at the inception of the congressillustrations of this fact are furnished by the ional plan of reconstruction. It needs no enactments of the past three years upon the argument to show that legislation which has question of reconstruction. After a fair trial produced such baneful consequences should be they have substantially failed and proved per- abrogated, or else made to conform to the nicious in their results, and there seems to be no genuine principles of republican government good reason why they should remain longer upon Under the influence of party passion and secthe statute-book. States to which the Constitutional prejudice, other acts have been passed not tion guaranties a republican form of government warranted by the Constitution. Congress has have been reduced to military dependencies, in already been made familiar with my views res. each of which the people have been made sub-pecting the tenure-of-office bill." Experience ject to the arbitrary will of the commanding has proved that its repeal is demanded by the general. Although the Constitution requires best interests of the country, and that while it that each State shall be represented in Congress, Virginia, Mississippi, and Texas are yet excluded from the two Houses, and, contrary to the express provisions of that instrument, were denied participation in the recent election for a President and Vice President of the United States. The attempt to place the white population under the domination of persons of color The act of March 2, 1867, making appropriin the South has impaired, if not destroyed, the ations for the support of the army for the year kindly relations that had previously existed be. ending June 30, 1868, and for other purposes, tween them; and mutual distrust has engendered contains provisions which interfere with the feeling of animosity which, leading in some President's constitutional functions as Cominstances to collision and bloodshed, has pre-mander-in-Chief of the Army, and deny to vented that co-operation between the two races 30 essential to the success of industrial enterprises in the Southern States. Nor have the inhabitants of those States alone suffered from the disturbed condition of affairs growing out of these congressional enactments. The entire Union has been agitated by grave apprehensions of troubles which might again involve the peace of the nation; its interests have been injuriously affected by the derangement of business and labor, and the consequent want of prosperity throughout that portion of the country.

The Federal Constitution-the magna charta of American rights, under whose wise and salutary provisions we have successfully conducted all our domestic and foreign affairs, sustained ourselves in peace and in war, and become a great nation among the Powers of the earth-must assuredly be now adequate to the settlement of questions growing out of the civil war waged alone for its vindication. This great fact is made most manifest by the condition of the country when Congress assembled in the month of December, 1865. Civil strife had ceased; the spirit of rebellion had spent its entire force; in the Southern States the people had warmed into national life, and throughout the whole country a healthy reaction in public sentiment had taken place. By the application of the simple yet effective provisions of the Constitution the executive department, with the voluntary aid of the States, had brought the work of restora

remains in force the President cannot enjoin that rigid accountability of public officers so essential to an honest and efficient execution of the laws. Its revocation would enable the executive department to exercise the power of appointment and removal in accordance with the original design of the Federal Constitution.

States of the Union the right to protect themselves by means of their own militia. These provisions should be at once annulled; for while the first might, in times of great emergency, seriously embarrass the Executive in efforts to employ and direct the common strength of the nation for its protection and preservation, the other is contrary to the express declaration of the Constitution, that, a well-regulated militia being necessary to the security of a free State, the right of the people to keep and bear arms shall not be infringed."

It is believed that the repeal of all such laws would be accepted by the American people as at least a partial return to the fundamental principles of the Government, and an indication that hereafter the Constitution is to be made the nation's safe and unerring guide. They can be productive of no permanent benefit to the country, and should not be permitted to stand as so many monuments of the deficient wisdom which has characterized our recent legislation.

The condition of our finances demands the early and earnest consideration of Congress Compared with the growth of our population, the public expenditures have reached an amount unprecedented in our history.

The population of the United States in 1790 was nearly four millions of people. Increasing each decade about thirty three per cent., it reached in 1860 thirty-one millions-an increase of seven hundred per cent. on the population in

/90. In 1869 it is estimated that it will reach | $372,000,000, estimated as necessary for the fiscal thirty-eight millions, or an increase of eight year ending the 30th of June, 1869, we obtain a hundred and sixty-eight per cent. in seventynine years.

The annual expenditures of the Federal Government in 1791 were $4,200,000; in 1820, $18,200,000; in 1850, $41,000,000; in 1860, $63,000,000; in 1865, nearly $1,300,000,000; and in 1869 it is estimated by the Secretary of the Treasury, in his last annual report, that they will be $372,000,000.

total expenditure of $1,600,000,000 during the four years immediately succeeding the war, or nearly as much as was expended during the seventy-two years that preceded the rebellion, and embraced the extraordinary expenditures already name.

These startling facts clearly illustrate the necessity of retrenchment in all branches of the public service. Abuses which were tolerated during the war for the preservation of the nation will not be endured by the people, now that profound peace prevails. The receipts from internal revenues and customs have during the past three years gradually diminished, and the continuance of useless and extravagant expenditures vill involve us in national bankruptcy, or else make inevitable an increase of taxes, already too onerous, and in many respects obnoxious on account of their inquisitorial character. One hundred millions annually are expended for the

By comparing the public disbursements of 1869, as estimated, with those of 1791, it will be seen that the increase of expenditure since the beginning of the Government has been eight thousand six hundred and eighteen per cent., while the increase of the population for the same period was only eighteen hundred and sixtyeight per cent. Again: the expenses of the Government in 1860, the year of peace immediately preceding the war, were only $63,000,000; while in 1869, the year of peace three years after the war, it is estimated they will be $372,000,000-military force, a large portion of which is eman increase of four hundred and eighty-nine per cent., while the increase of population was only twenty-one per cent. for the same period.

These statistics further show, that in 1791 the annual national expenses, compared with the population, were little more than $1 per capita, and in 1860 but $2 per capita; while in 1869 they will reach the extravagant sum of $9 78 per capita.

It will be observed that all of these statements refer to and exhibit the disbursements of peace periods. It may, therefore, be of interest to compare the expenditures of the three war periods-the war with Great Britain, the Mexican war, and the war of the rebellion.

ployed in the execution of laws both unnecessary and unconstitutional; $150,000,000 are required each year to pay the interest on the public debt; an army of tax-gatherers impoverishes the nation; and public agents, placed by Congress beyond the control of the Executive, divert from their legitimate purposes large sums of money which they collect from the people in the name of the Government. Judicious legislation and prudent economy can alone remedy defects and avert evils which, if suffered to exist, cannot fail to diminish confidence in the public councils, and weaken the attachment and respect of the people toward their political institutions. Without proper care the small balance which it is estimated will remain in the Treasury at the

ized, and additional millions be added to a debt which is now enumerated by billions.

In 1814 the annual expenses incident to the war of 1812 reached their highest amount-close of the present fiscal year will not be realabout thirty-one millions; while our population slightly exceeded eight millions, showing an expenditure of only $3 80 per capita. In 1847 the expenditures growing out of the war with Mexico reached $55,000,000, and the population about twenty one millions, giving only $2 60 per capita for the war expenses of that year. In 1865 the expenditures called for by the rebellion reached the vast amount of $1,290,000,000, which, compared with a population of thirty-year ending June 30, 1869, will be $341,392,868, four millions, gives $38 20 per capita.

From the 4th day of March, 1789, to the 30th of June, 1861, the entire expenditures of the Government were $1,700.000,000. During that period we were engaged in wars with Great Britain and Mexico, and were involved in hostilities with powerful Indian tribes; Louisiana was purchased from France at a cost of $15,000,000; Florida was ceded to us by Spain for $5,000,000; California was acquired from Mexico for $15, 000,000; and the Territory of New Mexico was obtained from Texas for the sum of $10,000,000. Early in 1861 the war of the rebellion commenced; and from the 1st of July of that year to the 30th of June, 1865, the public expenditures reached the enormous aggregate of $3,300,000,000. Three years of peace have intervened, and during that time the disbursements of the Government have successively been $520,000,000, $346,000,000, and $393,000,000. Adding to these amounts

It is shown by the able and comprehensive report of the Secretary of the Treasury that the receipts for the fiscal year ending June 30, 1868, were $405,638,083, and that the expenditures for the same period were $377,340,284, leaving in the Treasury a surplus of $28,297,793. It is estimated that the receipts during the present fiscal

and the expenditures $336,152,470, showing a small balance of $5,240,398 in favor of the Government. For the fiscal year ending June 30, 1870, it is estimated that the receip's will amount to $327,000,000, and the expenditures to $303,000,000, leaving an estimated surplus of $24,000,000.

It becomes proper, in this connection, to make a brief reference to our public indebtedness, which has accumulated with such alarming rapidity and assumed such colossal proportions.

In 1789, when the Government commenced operations under the Federal Constitution, it was burdened with an indebtedness of $75,000,000 created during the war of the Revolution. This amount had been reduced to $45,000,000 when, in 1812, war was declared against Great Britain. The three years' struggle that followed largely increased the national obligations, and in 1816 they had attained the sum of $127,000,000. Wise

and economical legislation, however, enabled | have suffered themselves to become enslaved, the Government to pay the entire amount within and merely exchanged slave-owners for new taska period of twenty years, and the extinguish- masters in the shape of bond-holders and taxment of the national debt filled the land with gatherers. Besides, permanent debts pertain to rejoicing, and was one of the great events of monarchical governments, and tending to monPresident Jackson's administration. After its opolies, perpetuities, and class legislation, are redemption a large fund remained in the Treas totally irreconcilable with free institutions. Inury, which was deposited for safe-keeping with troduced into our republican system, they would the several States, on condition that it should gradually but surely sap its foundations, eventbe returned when required by the public wants. ually subvert our governmental fabric, and erect In 1849-the year after the termination of an upon its ruins a moneyed aristocracy. It is our expensive war with Mexico-we found ourselves sacred duty to transmit unimpaired to our posinvolved in a debt of $64,000,000; and this was terity the blessings of liberty which were bethe amount owed by the Government in 1860, queathed to us by the founders of the Republic, just prior to the outbreak of the rebellion. In and by our example teach those who are to folthe spring of 1861 our civil war commenced. low us carefully to avoid the dangers which Each year of its continuance made an enormous threaten a free and independent people. addition to the debt; and when, in the spring of 1865, the nation successfully emerged from the conflict, the obligations of the Government had reached the immense sum of $2,873,992.909. The Secretary of the Treasury shows that on the 1st day of November, 1867, this amount had been reduced to $2,491,504,450; but at the same time his report exhibits an increase during the past year of $35,625,102; for the debt on the 1st day of November last is stated to have been $2,527,129,552. It is estimated by the Secretary that the returns for the past month will add to our liabilities the further sum of $11,000,000—making a total increase during thirteen months of $46.500,000.

Various plans have been proposed for the payment of the public debt. However they may have varied as to the time and mode in which it should be redeemed, there seems to be a general concurrence as to the propriety and justness of a reduction in the present rate of interest. The Secretary of the Treasury, in his report, recommends five per cent.; Congress. in a bill passed prior to adjournment, on the 27th of July last, agreed upon four and four and a half per cent.; while by many three per cent. has been held to be an amply sufficient return for the investment. The general impression as to the exorbitancy of the existing rate of interest has led to an inquiry in the public mind respecting the consideration which the Government has actually received for its bonds, and the conclusion is becoming prevalent that the amount which it obtained was in real money three or four hundred per cent. less than the obligations which it issued in return. It cannot be denied that we are paying an extravagant percentage for the use of the money borrowed, which was paper currency, greatly depreciated below the value of coin. This fact is made apparent, when we consider that bondholders receive from the Treasury, upon each dollar they own in Government securities, six per cent. in gold, which is nearly or quite equal to nine per cent. in currency; that the bonds are then converted into capital for the national banks, upon which those institutions issue their circulation, bearing six per cent. interest; and that they are exempt from taxation by the Government and the States, and thereby enhanced two per cent. in the hands of the holders. We have thus an aggregate of seventeen per cent. which may be received upon each dollar by the owners of Government securities.

In my message to Congress of December 4, 1865, it was suggested that a policy should be devised, which, without being oppressive to the people, would at once begin to effect a reduction of the debt, and if persisted in discharge it fully within a definite number of years. The Secretary of the Treasury forcibly recommends legislation of this character, and justly urges that the longer it is deferred the more difficult must become its accomplishment. We should follow the wise precedents established in 1789 and 1816, and without further delay make provision for the payment of our obligations at as early a period as may be practicable The fruits of their labor should be enjoyed by our citizens, rather than used to build up and sustain moneyed monopolies in our own and other lands. Our foreign debt is already computed by the Secretary of the Treasury at $850,000,000; citizens of foreign countries receive interest upon a large portion of our securities, and American tax-payers are made to contribute large sums for their support. The idea that such a debt is to become permanent should be at all times discarded, as in- A system that produces such results is justly volving taxation too heavy to be borne and regarded as favoring a few at the expense of the payment once in every sixteen years at the many, and has led to the further inquiry, whether present rate of interest of an amount equal to our bondholders, in view of the large profits the original sum. This vast debt, if permitted which they have enjoyed, would themselves be to become permanent and increasing, must event-averse to a settlement of our indebtedness ually be gathered into the hands of a few, and enable them to exert a dangerous and control ling power in the affairs of the Government. The borrowers would become servants to the lenders -the lenders the masters of the people. We now pride ourselves upon having given freedom to four millions of the colored race; it will then be our shame that forty million people, by their own toleration of usurpation and profligacy.

upon a plan which would yield them a fair remuneration and at the same time be just to the tax-payers of the nation. Our national credit should be sacredly observed; but in making provision for our creditors we should not forget what is due to the masses of the people. It may be assumed that the holders of our securities have already received upon their bonds a larger amount than their original investment.

measured by a gold standard. Upon this statement of facts it would seem but just and equita ble that the six per cent. interest now paid by the Government should be applied to the reduction of the principal in semi-annual installments, which in sixteen years and eight months would liquidate the entire national debt. Six per cent. in gold would at present rates be equal to nine per cent. in currency, and equivalent to the pay-value of our paper issues, when compared with ment of the debt one and a half time in a fraction less than seventeen years. This, in connection with all the other advantages derived from their investment, would afford to the public creditors a fair and liberal compensation for the use of their capital, and with this they should be satisfied The lessons of the past admonish the lender that it is not well to be over anxious in exacting from the borrower rigid compliance with the letter of the bond.*