HATES. OP ADVERTISING, nn tjsab j Ono'
Column, $100 j Half Column, $60 j Quarter Col
umn, $35.
Transient Advertisements per Square often lines
or lew, first insertion, $3; each subsequent Inter
tion, $1.
X. B. ABBOTT.
I
v. v. Bnowsr.
A square is one inch in space down the column,
counting cuts, display lines, blanks, 4c, as solid
OFFICE IN HANNON'S BUILDING. FIRST STREET.
matter. No advertisement to be considered
than a square, and all fractions counted $, fa
square. All advertisements inserted for ft less
T3RMS, m advakc : One year, $3; Six Months
$2; OneMonth,50 cts.; Single Copies, 12 cts.
vol. ni.
ALBANY, OREGON, SATURDAY, JANUARY 4, 1808.
NO. 21.
period tban three months to be regarded as tran
sient.
STATE RIGHTS DEMOCRAT.
PCBUSnED STBRT SATURDAY, BT
ABBOTT & BROWN.
DEiMOCBAT
Correspondents writing orer assumed signatures
or anonymously, must make known their proper
nam 33 to th Editor, or no attention will be giren
to tteir communications.
All Letters and Communications, whether on
business or for publication, should b addressed to
Abbott A Brown.
BUSINESS CARDS.
JTIS TH0R5T0S. LVL I BIMMO.
inOKXTON at SIMPSOX,
ATRORNEYS AND COUNSELORS AT LAW.
Will practice in the superior and inferior Courts
3 0 JJSSu Office up stairs in Forte Are-proof
brick, nearly opposite the post oQce.
Albany, Sot. 2. 1S67-t3o12j1
F. M. WADSWOKTH,
JSIQX, CARRIAGE AXD ORXA MEXTA L
PAI NTER.
OTer McBride's Wagon Shop, between First and
Second, on Ferry street.
First-oiass work doua on short nbticc,
v3nl9yll
JU H. CEA50B.
CRAXOR Jt HELM,
ATTORNEYS J: COUXSELLORS AT LAW
Orric In Noreross Brick Building, up stairs,
Albacy, Oregon,
E. X TANDY,
ATTORNEY AND COUNSELLOR AT LAW.
Office over the New York Store, on Mam
.twet, Albany, Oregon. T3nl5tf
W. i. H1LTAB1DEL. T. . REDriELO.
IIILTABXDEL at CO.,
DEALERS IN GROCERIES AND PROYI
sions, Wood and Willow Ware, Confection
ery, Tobacco, Cigars, Pipes, Notions, et. More
on Maine street, adjoining the Express office, Al
bany, Oregon. so2ST3a.tr
BEXJ. IIAYDEX,
Attorney and Counsellor at Law,
Will attend to all business entrusted to bim by
citizens of Polk and adjoining counties,
Eola, July 26, 1S67.
T2n51tf
. . UICK, . P. O. T. S. rLCXMBU, it. D.
DBS. RICE !: PLl'MMER.
Physicians and Surgeons,
Tender their sc price a to the citizens of Albany
and vi -initv. Office on Second street, opposite the
Lower Feny. Y-u47tf
X. B. HUMPHREY,
ATTORNEY AT LAW AND NOTARY PUBLIC,
ALBANY - - - - - OREGON.
OCIce in the Court House. tL.
mar9r2n30ly
J. C. POIVEEL,
A TTORXE Y ASD CO UXSELLOR A T LA Y
AXD SOLICITOR IX CIIAXCEIi Y,
4 LB ANY, Oregon. Collections and convey
JL neePtJl,ll.r attended to. oc20nl01y
S. SAB30Wf, I BLA1S, - TOCBC.
J. BARROWS at CO.,
GEXE3.AL fc COMMISSI OX MERCIIAXTS
DEALERS in Staple, Dry and Fancy Good-,
Groceries, Hardware. Cutlery, Crockery,
lioots and Shoes, Albany. Oregon.
Consignments solicited. ocCnStT
EUGENE SEMPLE,
ATTOUXEY AXD SOLICITOR.
Portland Oregon.
OFEICE OTer Kilbourn's Auction Rooms.
December 8, T2nl7tf
G. W. GRAY, D. D. S
SURGEON DENTIST, ALBANY, OGN.
Porfn Tia all operations in the
line of DENTISTRY in the most
I PERFECT and IMPRO LU man
pw.n desirinc artificial teeth
would do well to give bim a call. Office np-iUin
In Parruh's brick. Residence corner of Second and
Baker streets. au2o-ly
I. O. G. T.
"WESTERN STAR" LODGE No. 10, meets
at Masonie Hall eTery Tuesday ereninp.
MART. V. BROWN, W. C. T.
H. W. Fabher, W. S. T2n32tf
I. O. O. F.
ALBANY LODGE, NO. 4.
iSSgs The Regular Ifleet
ZL.j?ZZZ ings of Albany Lodge,
No, 4, L 0. O. F., are held at their Hall in Nor
eross Building, Albany, eTery WEDNESDAY
EVENING, at 7 o'clock. Brethren in good
standing are invited to attend.
By order of the N. G. aui-ly
E. r. RUSSELL. F. DALTOI
UlSSELL A DALTO,
ATTCRKEYS AN 9 COUNSELLORS AT LAW,
Solicitors in Chancery and Real Estate Agents,
Will practice in the Court of the Second, Third,
and Fourth Judicial Districts, and in the Supreme
Court of Oregon.
Cffice in Parrish'i Brick Building, Albany, Ore
gon.
jay SPECIAL ATTENTION eiren to the col
lection of Claims at all points in the above named
District. v2n4oyl
A NEW BARBERSHOP IN ALBANY!
On Main St., Adjoining Irving' Saddlery Shop
T1 E0JEU1E ANTEMIRE WILL BE GLAD TO
vJT holi the public by the nose and exercise his
barber out skill upon them.
He has the fittings of the tonsorial profession fn
erery detail good razors, easy chair, and all the
usual eosuetics used in first-class shops. v3n9
J. F. McCOY,
A TTORXE Y AND CO UNSELL OR AT LA W,
- AKD
NOTARY FUDLXC,
PORTLAND, - . OREGON
WILL PRACTICE IN TH3 SEVERAL
Courts of this City and State, and of Wash
ington Territory. All kinds of claims Jnd demands,
Dotes, bills, book accounts, subscriptions, etc..
collected on commission, by suit or solicitation.
Real Estate bought and sold. Taxes paid.
Buildings rented, and rents collected on commis
sion. Tittles to Real Estate searched, and abstracts
piade.
-also r
AGENT for the principal daily and weekly news
papers on the Pacific coast. Subscriptions and ad
vertisements solicited.
jZg-All collections promptly remitted.
OFFiCE-No. 95 Front street. Portland.
v2n27tj
1 T I 1 J
A 1) V E 11 T I S E J I K NTS.
HATS, HATS.
MEUSSDORFFER & BRO.,
Manufacturers and Importers of, and Wholesale
and Retail Dealers in
HATS CAPS,
AJCD
HATTERS' MATERIALS,
o. 72 Front Street, Portland,
A RE RECEIVING, IN ADDITION TO
l their extensive Stock, by CTery Steamer, all
tne LATEST STYLES of New York, Loudon aud
Parbiau taste, for
Gentlemen's and Children's wear
Which they will sell
CHEAPER THAN ANY OTHER HOUSE ON THE COAST!
DEALEIIS IN HATS
Willeonsult their own interests by examining our
Stock before purchatiug thewheru.
Hats of every style and Description
MADE TO ORDER,
ALSO
XEATLY UEIMIIUID,
AT
Meussdorflfcr
J. C.
& Bro.'s
No. 72 Frnt Street Portland. Oj n,
Cor. I and Second Sts Marysville. Cal.
No. 125 J Street Sacramento
No. 635 1 f.37 Commercial St San Franciite".
jZiJ Wholesale House at San Francweo. I a!.
No . 623 Commercial through to C3" Clay streets.
Dec I, ISCd v2alCtf
T II E
OLD STOVE DEPOT!
CIAIN STRSST
ALBANY.
JOHN BRIGGS,
(late c. c. coilet a co.)
Keeps constantly on band a general assortment of
STOVES!
Of the JXot Favorite Pattern.
Cook Stoves,
Parlor Stoves,
Box Stoves !
With a full and general aortment of
TIX, SHEET-IRON,
COPPER AND BRASS-YARE !
And all other articles usually found in a
TIN STORE!
Repairing Neatly and Promptly Eiectitfd.
TERMS Cash or Produce,
"Short Reckonings make Long- Friends."
Feh. 2, 67 v2n2otf
FURNITURE AND CABINET WARE.
O- MEALY Sc CO-
Corner ofTirst and Broad Alb in Stroets.
(First Door East of J. Xorcross' Brick)
Albany, L.Inn County, Oregon,
Keep constantly on hand
A FULL ASSORTMENT
Of everything in their line of Business,
it Lower Figures than any other House
This side of -Portland.
WE CHALLENGE COMPETITION
la the line of
UPHOLSTERY, PARLOR. SETS
Chamber Sets, Picture Frames
BUREAUS, SAFES, WARDROBES, ETC. ETC.
We hare also on band the celebrated
"ECONOMY WASHING nACIIINE,"
Which has no equal in the world. Get one anu
satisfy yourself.
Particular attention paid to all orders in our line.
UNDERTAKING PROMPTLY ATTENDED TO.
au!8-ly
A. MARSHALL.
I
PETEE 8CHL088ER.
ALBANY
LIVERY STABLE!
Opposite the Old "Pacific Hotel" Stand.
TnE UNDERSIGNED WOULD INFORM
the public that they hare on hand a good
supply of '
DOUBLE AND SINGLE BUGGIES,
Together with the best of Livery and
S-A-DDiLIB HORSES.
All of which will be let on
UEASOSAIiLE TERMS
GIVE US A CALL !
MARSHALL fc SOHLOSSER.
Albany, Jan. 14, 1867 v2n.231y
PRESIDENT'S MESSAGE,
Cvutinutnl from lat ifreJt.
THE NATIONAL FINANCES.
The present condition of our finnnco
arid circulating medium is ono to which
your early consideration U invited. Tho
proportion which tho currency of any
country should hoar to tho wholo of (he
annual product circulated hy its means in
a question upon which political cconoinUts
have not agreed, nor can it bo controlled
by legUlution. but must he left to the
irrevocable laws which everywhere regu
late commerce and trade. Tho circula
ting medium will ever irrcsistably flow to
those points where it i iu the grcitest
demand. The law of demand and supply
i as unerring m that which regulate
tho tides of cho ocean, and indeed, cur
rency, like tho tides, lias its ebbs and
flows throughout tho comrrcrcial world.
At tho beginning of the rebellion the
bank note circulation of Oic country
amounted to not much more than S2U0,
000,000; now tho circulation of the Na
tional 5ank note and the known as
legal tenders is nearly 8700,000,000.
While it is urged by some that this amount
should bo increased, others contend that
a decided reduction is absolutely essential
to the bet intercuts of tho country. In
view of thcKO diverge opinions it may be
well to ascertain the real value of our
paper issues when compared with a metal
lie or convertible currency. For this
purpose let us inquire how much gold and
hilvcr could be purchased by the ceven
hundred millions of paper money now in
circulation ; probably not more than half
tho amount of the latter, showing that
when our finr.cr currency is compared
with trold and silver its commercial value
is compressed into threo hundred and
fifty millions. This striking fact makes
it the obvic m duty of the Government,
as early as may be considered consistent
with the principles of ound political econ
omy, to take Mich measures ns will enable
th j holder of its notes, and those of the
National Hanks. Vt convert them without
!s into the specie of its equivalent. A
reduction of our paper circulation medium
need not necessarily follow. This how
ever, would depend upon the law of de
mand and supply, though it should be
borne in mind that in nuking lejxal tender
and bank notes convertible into coin or
its equivalent, their present specie value,
in the hands of their holders, would be
enhanced one hundred per cent. legis
lation for the accomplishment of a result
so desirable is demanded by the highest
public considerations. The Constitution
contemplates that the circulating medium
of the couutry i-hall be unif jrm in quality
and value. At the time of the formation
of that instrument the country had just
emerged from the war cf the revolution,
and was f-ufiVrin;; ."rom t'hc effects of a
redundant and worthless paper currency.
The saires of that period were anxious to
protect their posterity from the evils
which they themselves had experienced;
hence, in providing a circulating medium,
they conferred upon Congress the power
to coin money and regulate the '."aim;
there f. at the same time prohibiting the
States from making anything but gold
and silver a tender in payment fur debts.
The anomalous condition of our currency
is in striking contrast with that which
was originally designed. Our circulation
now embraces first, notes of National
I'anks, which are made receivable for
all dues to the (lovcrnmcnt, excluding
imports, and by all its creditors, except
in payment of iutcrot upon its bonds,
and the securities themselves; fecond,
legal tender notes issued by the United
States, and which the law requires ha!l
be received as well in payment of all
debts between citizens as of all Govern
ment dues, excepting imports ; and, third,
gold and silver coin. By the operation
of our present system of finance, however,
the metallic currency, when collected, is
.reserved only for one class of Government
creditors, who. holding its bonds, semi
annually reccivo their interest in coin
from the National Treasury. They are
thus made to occupy an invidious posi
tion, which way bo used to strengthen
the arguments of those who would briug
into disrepute the obligations of the Gov-
eminent, which should be inviolably main
tained. But whilo it acts with fidelity
toward the bondholder, who loaned his
money that the integrity of the Union
might be preserved, it should at the same
time observe good iaitii with the groat
masses with the people, who, having res
cued the Union from tho perils of rebel
lion, now bear the burdens of taxation,
that the Government may be able to
fulfill its eugagements. I here is no rea
son which will be accepted as satisfactory
by the people why those who defend us
on land and protect us on sea the pen
sioner upon the gratitude of the nation,
bearing scars and wounds received while
in its service; the public servant in tho
various departments of the Government;
the farmer who supplies tho soldiers of
the army and the sailors of our navy ;
the artisan who toils in the nation s work
shops, aud mechanics and laborers who
build its edifices and construct its forts
and vessels of war, should in payment of
their just and hard-earned dues, receive
depreciated paper, wjiile another class of
their countrymen, no moro deserving, arc
paid in coin of gold and silver. Equal
and exact justice requires that all cred
itors of tho Government should be paid
in currency possessing uniform value.
This can only bo accomplished by restora
tion of the currency to the standard estab
lished by the Constitution, and by this
means we would remove a discrimination
which may, if it has n.ot already done so,
create a prejudice that may become deep
rooted and wide-spread and imperil the
national credit. The feasibility of making
our currency correspond with the Consti
tutional standard may be seen by reference
to a few facts derived from our commer
cial statistics. Tho nroduction of the
precious metals in the tjnited States from
1849 to 1857. . inclusive, amounted to
8579,600,000; from 1858 to i860, inclu
sive, to 127,000,000, and from 1861 to
1807, inclusive, $157,500,000 making
tho grand aggregate of products, since
181U, of $1,174,000,000. Tho amount
of specie coined from 181!) to 1857, inclu
sivo, was ei:jfJ,000,0D0 ; from 1H59 to
1800, inclusive, 8125,000,000, and from
1801 to 1807, hiclusivo, $:H0,000,O0O,
making the total coinage, sinco 1849,
8874,000,000. From 1K49, to 1857, in
clusive, tho net exports of gpecio amount
ed to $281,000,000; from 1859 to I860,
inclusive, to 8148,000,000, ami from
1801 to 1807, inclusive, to $322,000,000
making tho grand total aggregate of
net exports sinco 1819, $747,000,000.
Thcso figures show on excess of product
over net exports of $103,000,000. There
aro in tho treasury 8111,000,000 in coin,
something moro than 810,000,000 in cir
culation on the Pacific coast, and a few
millions in the National and other banks;
in all about 8 1 00,000,000. This, however,
taking into account the specie in the
country prior to 1819, leaves moro than
$.'100,000,000 which have not been accoun
ted for by exportation, and therefore may
yet remain in the country.
These are important facts, and show
how completely inferior currency will su
pcreede the better, forcing it from circu
lation among the masses, and causing it
to be exported as a mere article of trade
to add to tho money capital of foreign
lands. 1 hey show the necessity of re
tiririir our paper money, that the return
of gold and silver to the avenues of trade
may be invited, and a demand created
which will cause the retention at home
of at least so much of tho productions of
our rich and inexhaustible gold-bearing
fields as may be nifileient for the purposes
of circulation. It is unreasonable to ex
pect a return to a sound currency so long
as the Government, by continuing to is
sue irredeemable notes, fills the channels
of circulation with depreciated paper.
Notwithstanding a coinage by our mints
since 1S19 of $871,000,000, the people
are now strangers to the currency which
was designed for their use and benefit, and
specimens of precious metals bearing the
natiouul device- aro j-cldom -ecn except
when produced to gratify the interest
excited by their novelty. If depreciated
paper is to be continued as tho permanent
currency of the country and all our coin
is to laconic a mere article of traffic
and speculation, to the enhancement in
price of all that i. indispensable to the
to the comfort of the people, it would
be wise economy to abolish our Mints,
thus saving the nation the care and ex
pense incident to such establishments,
and let all our precious metals be export
ed as bullion. The time has come, how
ever, when the Government and Nation
'al Dinks should be required to take the
most ffiie'.cut ftcps and make, all necessary
arrangements for a resumption of specie
payment at the earliest practicable pe
ri, d. Specie payments having been once
resumed by the Government and banks,
all notes or bills issued by cither, of a
less denomination than twenty dollars,
should by law bo excluded from circula
tion, so that the people may havo the
benefit and convenience of a gold and
silver currency, which, in all their busi
nessj transactions, will be uniform in
value, at home and abroad. Kvcry man
cf property or industry, every man who
desires to preserve what he honestly
possesses or to obtain what he honestly can
earn, has a direct interest in maintain
ing a safe circulating medium such a
medium as shall bo real and substantial
not liable to .vibrato with opinion;
not subject to be blown up or blown
down by tho breath of ppcculation, but
to be made secure. A disordered cur
rency is ono of the greatest political evils.
It undermines tho virtues necessary for
the support of tho social system, and en
courages propensities destructive of its
happiness. It wars ogainst industry,
frugality and economy, and it fosters
the evil spirits of extravagance and specu
lation. It has been asserted by one of
our profound and most gifted statesmen
that of all contrivances for cheating tho
laboring classes of mankind, none has
been more effectual than that which dc
hides them with paper mouey. This is
tho most effectual of inventions to fer
tilize the rich man's field by tho sweat
of tho poor man s brow. Ordinary tyr
anny, oppression, excessive taxation, those
bear lightly on the happiness of the mass
of the community compared with a fraud
ulent currency and robberies committed
by depreciated paper. Our own: history
has recorded for our instruction enough
and more than enough of tho demoralizing
tendency, injustice, and intolerable op
prcssion on the virtuous and well dispos
ed, of a degraded paper currency, author
ized by law or id any way countenanced
by Government. It is tho most success
ful device in times of peace or war, expan
siou or revolution to accomplish the
transf.r of all tho precious metals from
the great mass af tho people into the
hands ot tho lew, where they aro hoard
ed in secret places, or deposited in strong
boxes under bolts and bars, while tho peo
plo are left to endure all the inconve
nience, sacrifice and demoralization re
sulting from the use of depreciated and
worthless paper money. The condition
of our finances and tho operations of our
revenuo system are set forth and fully ex
plained in the ablo and instructive report
of the Secretary of the Treasury. On
the 30th of June, 1800, the public debt
amounted to $2,783,425,879. On the
30th of Juno last it was $2,092,199,215,
showing a reduction during the fiscal
year of $91,220,064. During tho fiscal
year ending Juno 30, 1867, the receipts
wero $490,684,010, and tho expendit
ure $346,729,129, leaving an available
surplus of $143,904,880. It is estimated
that tho receipts for the fiscal year end
ing June 30, 1868, will bo 8417,161,928,
and that tho expenditures will reach the
sum of $393,269,226, leaving in the treas
ury a surplus of twenty-three million eight
hundred and ninety-two thousand seven
hundred and two dollars. For the fiscal
year ending" June 30, 1869, it is estima
ted that the receipts will amount to
$381,000,000,. and the expenditures' vfill
bo $372,000,000 showing an excess of
$9,000,000 in favor of the Government.
Tho attention of Congress is earnestly in
vited to tho necessity of a thorough re
vision of our revenue system; and our
internal rovonuo laws and impost system
should bo so adjusted as to bear most
heavily upon articles of luxury, leaving
tho necessaries of life as freo from taxa
tion as may be consistent with tho real
wants of tho GovcrnmJfJ economically
administered. Taxation would not then
fall unduly on the man of moderate means,
and whilo nono would be entirely exempt
from assessment, all, in proportion to their
pecuniary abilities, would contribute to
ward tho support of tho state. A
modification of the internal revenue lys-
tem by a reduction in tho number of
articles now subject to tax would be fol
lowed by results equally advantageous to
citizens and Government. It would ren
der the execution of the law less expen
sive and more certain, remove all obstruc
tions to industry, lessen temptation to
evade the law, diminish the violation and
frauds perpetrated upon its provisions,
make its operations less inquisitorial, and
greatly rcduco in numbers the army of
tax-gatherers created by the system, who
take from the mouth of honest labor the
bread it has tamed. Retrenchment, re
form and public economy of the public
service, that the expenditures of the
Government may be reduced and the
people relieved from oppressive taxation.
A sound currency should be restored and
the public faith in regard to tho national
debt faithfully observed. The accom
plishment of thef-o important results,
together with the restoration of the Union
of the States upon the principles of the
Constitution, would inspire confidence at
home and abroad in the stability of our
institutions, aud bring to the nation
prosperity, peace and good will.
ItKt'Or.T OF TllK KKCRKTAUY OF WAIl.
Tho report of the Secretary of War
ad interim, exhibits the operations of the
army and of the f-cvcral Jiureaux of the
ar Department. I he aggregate strength
of our military force on the 30th of Sep
tember last was 50,315. The total esti
mate for military appropriations is 877,
124,77. including a deficiency in last
year's appropriation of $13,000,000.
The payments at the Treasury on account
of the service of tho War Department,
from January Ut to October 29th, 1807,
a tieriod of ten mouths, amounted tt
$1 19,807,000. The expense of the milt
tary establishment, as well as the num
bers of the army, are now three tiroes as
great n they have ever been in time of
pea.ee, www discretionary power is vest
ed in the hxccutivc to add millions to
this expenditure by an increase of the ar
my to the maximum strength allowed by
law. Tho menacing attitude of some of
tho warlike bands of Indians inhabiting
the district of country between the Ar
kanasand Platte rivers, and a portion of
Dakota Territory, required the presence
of a large military force in that region. -Instigated
by real or imaginary grievan
ces, the Indians occasionally committed
acts of barbarous violence on emigrant
and our frontier settlements; but a gen
cral Indian war has been providentially
averted. The Commissioners, under the
act of the 20th of July, 1807, were in
vested with full power to adjust existing
difficulties, negotiate treaties with tho
disaffected bands, ond select for them res
crvations remote from traveled routes, be
tween the Mississippi and the Pacific
coast. They entered without delay upon
the execution of their trust, but have
not made any official report of their pro
ceedings.
It is of vital importance that our dis
tant territories should bo exempt from
Indian outrages, and that tho construe
tiou of the Pacific Railroad, an object of
national importance, should not be inter
rupted by hostile tribos. These objects,
as well as tne material interests anu mor
al and intellectual improvement of the
Indians, can be more effectually Bubserv
ed by concentrating them upon portions
of the country set apart for their exclu
sive use, and located at points remote
from our highways, and not encroaching
upon the white settlements.
THE PACIFIC RAILROAD.
Since the commencement of the sec
ond session of tho Thirty-ninth Congress
510 miles of road have been completed
on tho main line and branches qf tho Pa
cific Railroad. The line from Omaha fs
rapidly approaching tho eastern baso of
the Rocky Mountains, whilst the termi
nus of the last section of continental road
in California accepted by tho Govern
ment on tho 24th day of October last.
was but eleven miles distant from the
summit of tho Sierra Nevada. Tho re
markablo energy evinced by tho compa
nies offers the strongest assurances that
the completion of the road from Sacra
mento to Omaha will not bo long defer
red.
LAND SALES, PENSIONS, ETC.
During the last fiscal year 7,041,114
acres of public lands wero disposed of,
and tho cash receipts from sales and fees
exceeded by one-half million of dollars
tho sum realized trom these sources dur
ing tho preceding year. .
Tho amount paid to pensioners, includ
ing expenses of disbursement, was $18,
610,956, and 26,482 names were added to
tho rolls. The entire number of pension
ers on the 30th day 01 June last was 155,-
474. ;
Eleven thousand six hundred and fifty
five patents and designs were issued dur
ing the year ending September 30. 1807.
and at that date the balance in the Treas
ury to the credit of patent fund3 was
$286,607.
THE NAVY.
The report of tho Secretary of the Na
vy states that we havo seven squadrons
actively and judioiously employed, under
efficient and able commanders, m protect
ing the persons and property of Ameri
can citizens, maintaining the dignity and
power ot the Government, and promo
ting the commercial and business inter-
the world. Of the 238 vessels compos
ing the present navy of tho United
States, fifty-sis, carrying 507 guni, are
in the squadron service. During the
year the number of vessels in commis
sion has been reduced to twelve, and
there arc thirteen Jess on squadron duty
than there wero at the date of the last
report. A largo number of vessels were
commenced and were in course of con
struction when the war terminated : and
although Congress had made the necessa
ry appropriations for their completion,
the department has either suspended
work upon them, or limited the slow con
struction of steam vessels so as to meet
contracts for machinery made with pri-
vatecHiaDiisnmcnts.
The total expenditures of the Navy De
partmcntfor the fiscal year, ending June
30, 1807, were $31,034,011. No appro
priations have been made or required
since the close of tho war for the con
struction and repair of vessels, for steam,
machinery, ordnance, provisions, cloth
ing, hemp, fuel, etc., the balances under
these heads having been more than sufii
cicnt for current expenses. It should al
so be stated, to the credit of the Depart
ment, that besides asking no anpropna
lions for the above objects for the last
two years, the Secretary of the Navy, on
the .Oth ot September last, in accord
anco with the Act of 3Iay 1, 1820, re
quested the Secretary of the Treasury to
carry to the Surplus Fund the sum of
$00,000,000, being tho amount received
from salts of vessels and other war prop
erty and remains 01 former appropna
nous.
I'OHT OFFICE DEPARTMENT.
The report of the Postmaster General
fchows the business of the Postofficc De
partment and the condition of the postal
service in a very favorable light; and
the attention of Congress is called to its
practical recommendations. The receipts
ot the department for the year ending
Juno 30, 1807, including all special ap
propriations for sea and land services,
and for free mail matter, were $19,978,
UJu. I he expenditures for all purposes
were $19,23483, leaving an unexpend
ed balance in favor of the Department of
$743,210, which can he applied toward
the expenses of the Department for the
current year. The increase of postal
revenue, independent of special appropri
ations, for the year 1807 over that of
18CG, was $850,010. The increase of
revenue from the sale of stamps and
stamped envelopes was $702,404. The
increase of expenditures for 1867 over
those of the previous year was chiefly
owing to the extension of the land and
ocean mail service. During the past year
new postal connections have been ratified
and exchanged with the United Kingdom
of Great Britain, and Ireland, Belgium,
the .Netherlands, Switzerland, tho North
German Union, Italy and the colonia
Government of Hongkong, reducing very
largely the rates ot ocean and land post
age to and from within those countries.
AGRICULTURAL MATTERS. ,
The report cf the acting Commissioner
of Agriculture concisely presents the con
dition, wants and progress of an interest
eminently worthy of the fostering care of
Congress, and exhibits a large measure of
useful results achieved during the year to
which it refers.
FOREIGN AFFAIRS.
The re-establishment of peace at home,
and the resumption of trade, travel and
commerce abroad, have served to increase
tho number and variety of questions in
tho department of foreign affairs. None
of the questions, however, have serious
ly disturbed our relations with other
States. The Republic of Mexico, hav
ing been relieved from foreign interven
tion, is earnestly engaged in efforts to re-
cstaohsh her constitutional system of gov
ernment. A good understanding contin
ues to exist between our Government and
the Republics of Hayti and San Domin
go ; and our cordial relations with the-
Ccntral and South American States re
main unchanged. Tho tender made in
conformity with the resolution of Con
gress of tho good offices of tho Govern
ment, with a view to an amicabb adjusi
mcnt of peace between Brazil and her al
lies on one side and Paraguay on the oth
er, and between Chile and her allies on
one side and Spain on the other, though
kindly received, has in neither caso been
fully accepted by the belligerents.
The war in the Valley of the Parana
I . t y-v ..
is sun vigorously maintained, un the
other hand, actual hostilities between
tho Pacific States and Spain have been
moro than a year snspended. I shall,
on any proper occasion that may occur,
renew the conciliatory recommenda
tions which have already been made.
Drazil, with its enlightened sagacity
and comprehensive statesmanship, has
opened the great channels of the Am
azon and its tributaries to universal
commerce. Nothing more seems need
ful to secure rapid and cheering pro
gress in South America. I refer to
those peaceful habits without which
States and nations cannot, in this age,
well expect material prosperity or so
cial advancement. The Exposition of
universal inuusiry x'aris nas pass
ed, and it seems to have fully realized
the high expectations of the French
Government. If duo allowance be
made for recent political derangement
of its industry, the part which the
TJnited States has borne in the exhibi
tion and art, may be regarded with
verv hirrh Rit.ifae.tinn Tlnrinrr tho
Exhibition a conference was held of
delegates from several nations- -the
United States being ones in which
the inconvenience of commercial and
social intercourse, resulting from
from the different standards of motley
value, were fully discussed, and plans
were developed for establishing, by
universal consent, a common principle
for coinage of gold. The conference
is expected to be renewed, with the
attendance of many foreign States not
hitherto represented' A report of
these interesting proceedings will be
submitted to Congress, which will nb
doubt justly appreciate the great ob
ject, and be ready to adopt any meas
ure which may tend to lacilitate its
ultimate accomplishment.
On the 25th of February. 1862, Con
gress declared by law the treasury
4 . n 4 eV ft fc44 m e - sV'w j-. s-f ft--
that act should be legal tender in pay
ment of all debts, ttublic and private.
... . ' .
wiiiiiii viiu uniiL'u oiuirs, ah annual
iam!finnn ftf feTfi ffC Inoa f!
IViilllVUIIVV W . yV,VW, .VC7 K . . S A
expenses, accrues to claimants under
the convention with Spain, in 1834.
These remittances, since the passage
. . f , 1 1 f t r t
01 trial act, nave oeen paia in suca
notes. The claimants insist that the
Government ought to require payment
in coin. The subject may be deemed
worthy of your attention.
r o arrangement nas yet oeen reacnea
for the settlement of our claims, for
Ilritish depredations upon the com
merce of the United States. I havo
felt it my duty to decline the proposi
tion of arbitration made by Her Maj
esty's Government, because it has ei
ther been accompanied by reservations
or limitations incompatible with tho
rights, interests and honor of the coun
try. It is not to be apprehended that
Great Britain will persist in her refu
sal to satisfy these just and reasonablo
claims, which involve the sacred prin
ciple of non-intervention a principle
henceforth not more important to tho
United States than to other commer
cial nations,
Steps have been taken toward tho
acquisition of foreign territory in
Alaska, and the Danish West Indies,
The " est India Islands were settled
and colonized by European States sim
ultaneously with the settlement of tho
American continent. Most of the col
onies planted here became independ
ent nations at the close of the last and
beginning of the present century. Our
own country embraced communities
which at one period were colonies of
Great Britain, France, Spain, Holland,
Sweden and Russia, The people of tho
West Indies, with the exception of tho
Island of Hayti, have neither obtained
nor aspired to independence, nor havo
thev become prepared for self-defence.
Altliough possessing considerable com
mercial value, they have been held by
the several European States which
colonized or at some time conquered
them, chiefly for purposes of military
and naval strategy in carrying oufc
European policy and designs m regard
to this continent. In our Revolution
ary War, ports and harbors in tho
est India Islands were used by our
enemy to the great injury and embar
rassment of the United States. "We
had the same experience in our second,
war with Great Britain. The same Eu
ropean policy for a long time excluded
us even from trade with the West In
dies, while we were at peace with all
nations. In our recent civil war the
rebels and their blockade-breaking al
lies found facilities in the same ports
for the work, which they too success
fully accomplished, in injuring and de-.
vastating the commerce which we are
now engaged in rebuilding. We labor
ed especially under this disadvantage,
that European steam vessels employed
by our enemies found friendly snelter,
protection and supplies in West Indian
ports, while our own naval operations
were necessarily carried on from our
own distant shores. There was then
an universal feeling of the want of an
advanced naval outpost between the
Atlantic coast and Europe. The duty
of obtaining such an outpost peacefully
and lawfully, while neither doing nor
meaning injury to other States, earn
estly engaged the attention of the Ex
ecutive Department before the close
of the war; and it has not been lost
sight of since that time. A not entirely
dissimilar naval want revealed itself
during the same period on the Pacific
coast. Tho required foothold there
waR fortunately secured by our lato
treaty with the Emperor of Russia ;
and it now seems imperative that the
more obvious necessities of the Atlan-.
tic coast should be as carefully provi
ded for. A good and convenient har
bor, capable of easy defense, will sup-,
ply that want. With the possession
of such a station by the United States,
neither wo nor any other American na-.
tion need longer apprehend injury or
offense from any trans-Atlantic enemy.
I agree with our early statesmen tha$
the West Indies gravitate to, and may
be expected ultimately to be absorbed
by the continental States including
our own. I agree with them, also, that
it is wise to leave the question of such
absorption to this process of national
political gravitation. The islands cf
St. Thomas and St, Johns, which con
stitute a part of the group called the
Virgin Islands, seem to oner us advan
tages immediately desirable, : wh,i$
their acquisition could bo secured in
harmony with the principles to which
I have alluded. A treaty has therefore
Via ATI rfsTstlri J? A3 V a Ti t r vPT"ati
UVVU WUVIUUVU n IVU V -V JLSvf, VI iVUT
mark for the cession of these Islands
and will be submitted to the Senate
for consideration.
It will hardly bo necessary to call
the attention of Congress to the sub
ject of providing for the payment to
Russia of the sum stipulated in, the
treaty for the cession of Alaska, post
session having been formally delivered
to our Commissioner, The territory
remains for the present in, care of $
military force awaitinsr such civil or
ganization, as shall be directed by Coni
gress, . V ' .
THE RIGHTS OP NATRAXI CITIZENS,
The annexation of many small German
States to Prussia, and the reorganization
of that country under a new aud liberal
the effort to obtain a just and prompt Eat-
cerning the claims of foreign States ta
military service from their subjects naturt
aliz.ed in the United States. ' In coacec
Concluded on Fourth JV?e. ;