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against　the　sending　of　such　colonies　to　their　respective　territories。

Under　these　circumstances　I　have　declined　to　move　any　such　colony　to

any　state　without　first　obtaining　the　consent　of　its　government；　with

an　agreement　on　its　part　to　receive　and　protect　such　emigrants　in　all

the　rights　of　freemen；　and　I　have　at　the　same　time　offered　to　the

several　states　situated　within　the　Tropics；　or　having　colonies　there；

to　negotiate　with　them；　subject　to　the　advice　and　consent　of　the

Senate；　to　favor　the　voluntary　emigration　of　persons　of　that　class　to

their　respective　territories；　upon　conditions　which　shall　be　equal；

just；　and　humane。　　Liberia　and　Haiti　are　as　yet　the　only　countries　to

which　colonists　of　African　descent　from　here　could　go　with　certainty

of　being　received　and　adopted　as　citizens；　and　I　regret　to　say　such

persons　contemplating　colonization　do　not　seem　so　willing　to　migrate

to　those　countries　as　to　some　others；　nor　so　willing　as　I　think　their

interest　demands。　　I　believe；　however；　opinion　among　them　in　this

respect　is　improving；　and　that　ere　long　there　will　be　an　augmented

and　considerable　migration　to　both　these　countries　from　the　United

States。



The　new　commercial　treaty　between　the　United　States　and　the　Sultan　of

Turkey　has　been　carried　into　execution。



A　commercial　and　consular　treaty　has　been　negotiated；　subject　to　the

Senate's　consent；　with　Liberia；　and　a　similar　negotiation　is　now

pending　with　the　Republic　of　Haiti。　　A　considerable　improvement　of

the　national　commerce　is　expected　to　result　from　these　measures。



Our　relations　with　Great　Britain；　France；　Spain；　Portugal；　Russia；

Prussia；　Denmark；　Sweden；　Austria；　the　Netherlands；　Italy；　Rome；　and

the　other　European　states　remain　undisturbed。　　　Very　favorable

relations　also　continue　to　be　maintained　with　Turkey；　Morocco；　China；

and　Japan。



During　the　last　year　there　has　not　only　been　no　change　of　our

previous　relations　with　the　independent　states　of　our　own　continent；

but　more　friendly　sentiments　than　have　heretofore　existed　are

believed　to　be　entertained　by　these　neighbors；　whose　safety　and

progress　are　so　intimately　connected　with　our　own。　　This　statement

especially　applies　to　Mexico；　Nicaragua；　Costa　Rica；　Honduras；　Peru；

and　Chile。



The　commission　under　the　convention　with　the　Republic　of　New　Granada

closed　its　session　without　having　audited　and　passed　upon　all　the

claims　which　were　submitted　to　it。　　A　proposition　is　pending　to

revive　the　convention；　that　it　may　be　able　to　do　more　complete

justice。　　　The　joint　commission　between　the　United　States　and　the

Republic　of　Costa　Rica　has　completed　its　labors　and　submitted　its

report。



I　have　favored　the　project　for　connecting　the　United　States　with

Europe　by　an　Atlantic　telegraph；　and　a　similar　project　to　extend　the

telegraph　from　San　Francisco　to　connect　by　a　Pacific　telegraph　with

the　line　which　is　being　extended　across　the　Russian　Empire。



The　Territories　of　the　United　States；　with　unimportant　exceptions；

have　remained　undisturbed　by　the　civil　war；　and　they　are　exhibiting

such　evidence　of　prosperity　as　justifies　an　expectation　that　some　of

them　will　soon　be　in　a　condition　to　be　organized　as　States　and　be

constitutionally　admitted　into　the　Federal　Union。



The　immense　mineral　resources　of　some　of　those　Territories　ought　to

be　developed　as　rapidly　as　possible。　　Every　step　in　that　direction

would　have　a　tendency　to　improve　the　revenues　of　the　government　and

diminish　the　burdens　of　the　people。　　It　is　worthy　of　your　serious

consideration　whether　some　extraordinary　measures　to　promote　that　end

cannot　be　adopted。　　The　means　which　suggests　itself　as　most　likely　to

be　effective　is　a　scientific　exploration　of　the　mineral　regions　in

those　Territories　with　a　view　to　the　publication　of　its　results　at

home　and　in　foreign　countriesresults　which　cannot　fail　to　be

auspicious。



The　condition　of　the　finances　win　claim　your　most　diligent

consideration。　　The　vast　expenditures　incident　to　the　military　and

naval　operations　required　for　the　suppression　of　the　rebellion　have

hitherto　been　met　with　a　promptitude　and　certainty　unusual　in　similar

circumstances；　and　the　public　credit　has　been　fully　maintained。　　The

continuance　of　the　war；　however；　and　the　increased　disbursements　made

necessary　by　the　augmented　forces　now　in　the　field　demand　your　best

reflections　as　to　the　best　modes　of　providing　the　necessary　revenue

without　injury　to　business　and　with　the　least　possible　burdens　upon

labor。



The　suspension　of　specie　payments　by　the　banks　soon　after　the

commencement　of　your　last　session　made　large　issues　of　United　States

notes　unavoidable。　　In　no　other　way　could　the　payment　of　troops　and

the　satisfaction　of　other　just　demands　be　so　economically　or　so　well

provided　for。　　The　judicious　legislation　of　Congress；　securing　the

receivability　of　these　notes　for　loans　and　internal　duties　and　making

them　a　legal　tender　for　other　debts；　has　made　them　an　universal

currency；　and　has　satisfied；　partially　at　least；　and　for　the　time；

the　long…felt　want　of　an　uniform　circulating　medium；　saving　thereby

to　the　people　immense　sums　in　discounts　and　exchanges。



A　return　to　specie　payments；　however；　at　the　earliest　period

compatible　with　due　regard　to　all　interests　concerned　should　ever　be

kept　in　view。　　Fluctuations　in　the　value　of　currency　are　always

injurious；　and　to　reduce　these　fluctuations　to　the　lowest　possible

point　will　always　be　a　leading　purpose　in　wise　legislation。

Convertibility；　prompt　and　certain　convertibility；　into　coin　is

generally　acknowledged　to　be　the　best　and　surest　safeguard　against

them；　and　it　is　extremely　doubtful　whether　a　circulation　of　United

States　notes　payable　in　coin　and　sufficiently　large　for　the　wants　of

the　people　can　be　permanently；　usefully；　and　safely　maintained。



Is　there；　then；　any　other　mode　in　which　the　necessary　provision　for

the　public　wants　can　be　made　and　the　great　advantages　of　a　safe　and

uniform　currency　secured？



I　know　of　none　which　promises　so　certain　results　and　is　at　the　same

time　so　unobjectionable　as　the　organization　of　banking　associations；

under　a　general　act　of　Congress；　well　guarded　in　its　provisions。　　To

such　associations　the　government　might　furnish　circulating　notes；　on

the　security　of　United　States　bonds　deposited　in　the　treasury。

These　notes；　prepared　under　the　supervision　of　proper　officers；　being

uniform　in　appearance　and　security　and　convertible　always　into　coin；

would　at　once　protect　labor　against　the　evils　of　a　vicious　currency

and　facilitate　commerce　by　cheap　and　safe　exchanges。



A　moderate　reservation　from　the　interest　on　the　bonds　would

compensate　the　United　States　for　the　preparation　and　distribution　of

the　notes　and　a　general　supervision　of　the　system；　and　would　lighten

the　burden　of　that　part　of　the　public　debt　employed　as　securities。

The　public　credit；　moreover；　would　be　greatly　improved　and　the

negotiation　of　new　loans　greatly　facilitated　by　the　steady　market

demand　for　government　bonds　which　the　adoption　of　the　proposed　system

would　create。



It　is　an　additional　recommendation　of　the　measure；　of　considerable

weight；　in　my　judgment；　that　it　would　reconcile　as　far　as　possible

all　existing　interests　by　the　opportunity　offered　to　existing

institutions　to　reorganize　under　the　act；　substituting　only　the

secured　uniform　national　circulation　for　the　local　and　various

circulation；　secured　and　unsecured；　now　issued　by　them。



The　receipts　into　the　treasury　from　all　sources；　including　loans　and

balance　from　the　preceding　year；　for　the　fiscal　year　ending　on　the

30th　June；　1862；　were　583；885；247。06；　of　which　sum　49；056；397。62

were　derived　from　customs；　1；795；331。73　from　the　direct　tax；　from

public　lands；　152；203。77；　from　miscellaneous　sources；　931；787。64；

from　loans　in　all　forms；　529；692；460。50。　　　The　remainder；

2；257；065。80；　was　the　balance　from　last　year。



The　disbursements　during　the　same　period　were：　　For　congressional；

executive；　and　judicial　purposes；　5；939；009。29；　for　foreign

intercourse；　1；339；710。35；　for　miscellaneous　expenses；　including　the

mints；　loans；　post…office　deficiencies；　collection　of　revenue；　and

other　like　charges；　14；129；771。50；　for　expenses　under　the　Interior

Department；　3；102；985。52；　under　the　War　Department；　394；368；407。36；

under　the　Navy　Department；　42；674；569。69；　for　interest　on　public

debt；　13；190；324。45；　and　for　payment　of　public　debt；　including

reimbursement　of　temporary　loan　and　redemptions；　96；096；922。09；

making　an　aggregate　of　570；841；700。25；　and　leaving　a　balance　in　the

treasury　on　the　1st　day　of　July；　1862；　of　13；043；546。81。



It　should　be　observed　that　the　sum　of　96；096；922。09；　expended　for

reimbursements　and　redemption　of　public　debt；　being　included　also　in

the　loans　made；　may　be　properly　deducted　both　from　receipts　and

expenditures；　leaving　the　actual　receipts　for　the　year

487；788；324。97；　and　the　e