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Show I iamii,iiiTinwwMiiW" '' '"" r??.1"' invited to the necessity of a thorough' Tevlslon of oar revenue system. Our internal-- ' revenuy Jaw mo. I impost system r,Iiciiil'I be so as to bear the most heavily on ar-ticles of luxury, having the neces-saries of life as free from taxation as may be consistent with ' the real wants of Government economically Taxation woulJ not then fall unduly on the man of moderate mean0, and while none would to en-tirely exempt from assessment, nil, in proportion to their pecuniary abilities, would contribute towards tbe support of the Slate. A modification of the in-ternal revenue system, by a largo re-duction - in- the" number of articles now : subject to taxation1, would by followed by rtsidls equally udvanU-geou- s to die ati.fii and Govern-ment. It would render the law less expensive and. more certain, remove obstructions to industry, lessen tempta-tions to evnde the law, diminish viola-tions and frauds perpetrated upon its provisions,' make its operations less inquisitorial, and greatly reduce in numbers the army of tax gatherers cre-ated by tho system, who take from the mouth of honest labor the bread it has earned. lletrenchment, reform and economy should bo carried into every branch of the public ssrvice, that the. expenditures of (iovernment may-be redaced, and the people relieved from oppressive taxation. A sound currency should be restored, and the public faith in regard to the national debt, sacredly observed. The accomplishment of these 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 institu-tions, and briug to the nation pros-perity, peace and good will. The report of the Secretary of War l ;k rim, exhibits the operations of the army, and of the several Bureaus of the War Department. The aggregate 'strength of our military force, on tho 20th September last, us oj,Sl. The total estimate for military appropria-tions is 77,124,707, .including a deli-clen- cy in last year's of appropriation $13,Cyu,0ou The payments at the Treasury ou account of the service of tho war Department, from Jan. 1 to Oct., 29, ISO", a period often months, amoun-ted to $U9,h07,O')O. The expenses of tho military establishment, as well us the numbers of the arinv. aro now three mm.' jhuiiiu.h" ihmmw mmm.t.M acre of public hind wvie disposed of, and the cash receipts f:om the s.rdes ami , fees exceeded by one half million dol- - j lars the sum realized from those sources during the prccedingyear. Theamount paid to pensioners, including the ex-penses of disbursements, was SIS, CIO, 1M and :?,J,4S2uames were added to the rolls. The entire number of pensioners on the S Uh of June last, was l w.471. patents and designs' were Issued during the year ending September COth, 1S07, and at that date the balance in the Treasury to the credit of the Patent funds was $2S(,C07. j The report of the Secretary of lb Navy states that wc have teveu squad-- ' rous'activtly and judiciously employed, j under efficient and uble commanders, in protecting the persons and property of American citizens, maintaining tbe dignity and power of the Government, and promoting commerce and the busi-ness interests of our countrymen in every part of the world. Of the 23S ves-sels composing the present navy of the United States, 5G carrying oJ7 guns, are in squadron service. During the year, the number of vessels la commission has been reduced 12, aud there are. 1 less on squadron duty than there were at the date of last report. A large num-ber of vessels were commenced and in course of construction when the war terminated, aud although Congress had made the necessary appropriations for their completion, the Department has either suspended work upon them, or limited it to a slow completion of eteara vessels, so as to meet tho contracts for machinery made with private estab-lishments. The total expenditures of the Navy Department for the fiscal year ending June 80, .1807, were 31,034,011. No appropriations have been made or required since the dose of the war for the construction and repair of vessels for steam machinery, ordnance, pro-visions, clothing, fuel, hemp, &.?., the balances under these several heads hav-ing been more than sufficient for the current expenditures. It should also be stated to the credit of the Depart-ment, that besides asking no appropria-tions for the above objects for the last two years, the Secretary of the Navy, on the 30th of September last, in ac-cordance with the Act of May 1st, 1S20, requested the Secretary of the Treasury to carry to the surplus fund the sum of S'jhj,000 believing the amount rece ived from tho sales of vessels and othe r war property, and remnants of former appro- - Sn th American States rem :n un- - . . ' ' ' ,' ,'. The tender made, in conformity with a resolution of Congress-- , of the good offices of the Government with a view to an amicable adjustment of pence be-tween Brazil and her Allies on the one side, aud Paraguay on the other, and between Chili and her Allies on the one side, and Spain on the other, though kindlv received, has in neither case been tally reeepted by the belligerents. The war "iu the valley of the Parana is still vigorously mainained. On the other hand, actual hostilities between the Pacific Slates and Spain have been more than a year suspeuded. 1 shall on any proper occasion that may occur, renew' the conciliatory recommendations which have lccn made. Brazil, with enlightened ajiacity aud comprehen-sive statesmanship, has opened the great channels of the Amazon and its tributaries to universal commerce. Nothing more seems needful to assure a rapid ami cheerful progress in South America. 1 refer to those peaceful habits without which states and nations cannot in this age well expect material prosperity or soeial advancement. The Exposition of Universal Industry at Paris has passed, and seems to have fully realized the high expectations of the French Government. If due allow-ance be made for the recent political de-rangement of industry here, the part which the United States has borne in this Exhibition of invention and art may be regarded with very high satis-faction. During the Exposition a ferecce was held of delegates from sev-eral nations, the United States being one, in which the inconveniences of commerce and social intercourse, re-sulting from the diverse standards of money value, werejvery fully discussed, andiplaus were developed for establish-ing, by universal consent, a common principle for the coinage of gold. These conferences are expected to be renewed with the attendance of niany foreign slates not hitherto represented. A re-port of these interesting proceedings willl he submitted to Congress, which will no doubt justly appreciate the great object, aud be ready to adopt any measure which may tend to facilitate its ultimate accomplishment.. On the i of February, 1SG2, Con-gress declared, by law, that treasury notes without interest, authorized by that Act, should be legal tender for the payment of all debts, public and pri-vate, within tho TTiiitfl StatM. An the West Indies, whUew-- V with Tli war, the rebels and tht?r 5 blockade-breakin- g allu V Ut3 in the same ports for tuei-the- y too successfully VhH Injuring and rievnMStlnS1'6 we are now eUo..? ', .coniTnere ing. We labored f disadvantage, that KuroS". thh els, employed by our luZt. V friendly shelter, f rotcctioni ' iu West Indian whnA8" naval operations werVr?e! ried on from our 3 There was then an univeSJM an advanced naval outpost ?5 Atlantic roan and r'Vhi ofobtainingsuohan outrU rVI& and lawfully, while neither lyengaged'theatte.Uiouofth'Si tive Department before the c!oe r',Y war; and it has not been lost 5 since that time. K A not entirely dissimilar naval . revealed itself during the on the Pacihc coast. The require,' fi! hold there was fortunately secured Z our late treaty with the Fmperorof j1 sia, and it now seems imperative that th, more obvious necessities of the Atlanta coast should be as carefully provide for. A good and convenient port ami harbor, capable of casv defence m supply that want. Witii the no4ii. of Hiich a station by the United wat neither wc nor any other American r-ation need longer apprehend injury or oll'ence from any trans-atlanti- c enerm I agree with our early statement, thai the .Vest Indies naturally gravitateto and may be exacted ultimately to alsorlc(I by, the Continental' sub including our own. 1 agree L them, also, that it is wise to m the question of such absorption to the process of natural political grwi. tation. The islands of St. Thormsaai St; John's, which constitute a part tf the group called the Virgin Islaiih. seemed to offer no advantages immsd:-atel-desirable, while their ccquisltior. couid be secured in harmony, with the principles to which I have alluded. A treaty has, therefore been concluded with the King of Denmark forthecw-sio-of those islands, and will be to the Senate for consideration. It will hardl' be necessary to call tbe attention of Congress to the subjecto; providing for the payment to Eui,c! the sura stipulated in the treaty for the cession of Alaska. Possession Living been formally delivered to our comm-issioner, the Territory remains for the present in care of a military forct. awaiting such civil organization as shaJ be directed by Congress. The annexation of niaD.v small States to Prussia, and the of that country underanewu).! liU'ral Constitution, have inaumlmcto renew the to obtain a JiM st prompt set rimc-"-t of the long vcf m;ji concerning the claims of fo-reign States for military service froni their subjects naturalized iu the IniW State?.1 In connection with this sulj' the attention of Congress is respectfuUj called tea singular aud embarraM conflict of laws. The Executive i partment of this Government has biw-t-rt-uniformly held, sis it now h that naturaliziition in conformity '"'j the Constitution and laws of the H States, absolves the recipient frow giance to the British Crown, ym another theory is held that it islu-sible- , an.l that the rec ipient i' solved by. our laws of natura Hatwj-Britis- Judges cite courts and M t horities of the United States 1W .f that theory, against the P'noBrit. bv the Executive authority of tbe el States. Tliis conflict the . public mind , con eruiJig rights of naturalize.1 citizens -- (V impairs liie national abroad. I called attention tothiMJ in my last annual Message, Mw again, respectfully anpoa to w to declare tho national will nnt aldy upon this important qnwuon. The abuse of our laws, lj tine piosecution of the African fcv trade, from American por " American citizenshas altogetn ed; and under existing circuM-- i no appreheusons of its rene w part of the .world are ente" Under these circumstances, i. --a question whether we sMlnotF. to her Majesty's Government u. sion or discontinuance ofJD.ef ree for t tiens for maintaining a Washington, December 3rd., f times as great a3 they iiave ever U-ei-i ia time of peace: while discretionary power is vested iu the Eexecutive, to add mil-lions to this expenditure by our increase of the army to the maximum strength, allowctl by law. The menacing attitude of some of tho warlike bands of Indians, inhabiting the district of country between tho Arkansas and Platte liivers, and por-tio- n-of Dakota Territory, required the presence of a largo military force in that region. Instigated by real or imaginary grievances, ihe Indians have occasionally committed acts of barbarous violence on emigrants aud our frontier settlements; but a general Indian war has been providentially averted. The Commissioners, under the Act of the 2o;h July, 1S07, were in-vested with full power to adjust exist-ing difficulties, negotiate treaties with the disatleeted bauds, and select for them reservations remote from traveled routes, betweeu the Mississippi and ic. They entered with?;:' .r'-'.- 1 upon the execution o' rit 'iat our dli'ant Territories iAUd be exempt from. Indian out-breaks, aud that the construction of the Paoillc Uailroad, an object or national importance, should not be Interrupted by hostile tribes. These objects, as well as the material interests, and the moral and intellectual improvement f the In-dian, can be most effectually secured by concentrating them upon a portion of country set apart for their exclusive u-- e, and located at points remote from our highways aud encroaching white settlements. Since the commencement of the L'd Session of the Cuth Congress, old miles of roii l have been constructed on the main line aud branches of tiie Pacilic Railway. The line from Omaha is rapidly approaching the eastern base of the liocky Mountains; whilst the terminus of the last section of construct-e- l road in California, accepted by Gov-ernment onthe2ithdayot October last, was but 11 miles distant from the sum-mit of the Sierra Nevada. The remark-able energy evinced by the companies offers the strongest assurance that the completion of the road from Sacramento to Omaha will not be long deferred. During tho last fiscal year 7,011,111 priations. The report of the P. M. general shows the business of the lVwtOflice department and the condition of the postal service in a very favorable light; and the atten-tion of Congress is called to its prac-tical recommendations. The receipts of the Department for tho year ending June .'(), 1S07, including all special appropria-tions for sea and land service,and for free mail matter were $19,078,(y;J. The ex-penditures for all purpose were $19,2o., leaving an unexpended balance in favor of the-- Department, of 74:5,210, which can bo applied towards the expenses of tho Dpt. for the current year. The increase of postal revenue, independent of specific appropriations, for the year 1SU7, over that of lSGtj, w The increase of rev - l4m tho sale of stamp - -- sniped en-velopieisi, iwwas :rT;- - r!ie,ilncrw!t,hoef , - J.lous year, was owing chielly to the extension of the land and oceau mail service. During the past year new-posta-l conventions have been ratified and exchanged with the United King- dom of Great Britain aud Ireland, Bel-gium, the Netherlands, Switzerland, the North German Union, Italy, and the Colonial Government at llongkon", reducing very largely the rates of ocean and laud postages to and from and within those countries. The report of the Acting Commission-er of Agriculture concisely present the condition, wants aud progress of an in- terest eminently worthy of the fostering care of Congress, aud exhibits a large measure of useful results achieved dur-ing the year to which it refers. The of peace at home, and the resumption of interrupt- ed trade, travel and commerce abroad, have served to increase the number and variety of questions in the Department for Foreign Aflnlrs. None of t!,0 oues-tlon- s, however, have seriously disturbed our relations with other States The Itepublic of Mexico, having been re- lieved from foreign intervention, is ear-nestly engaged in efforts for the of her constitutional sys- tem of government. A good under-sotuarnding contiuues to xist between Government and the Republics of Havti and San Domingo, and our cor- dial relations with the Central and annual remittance of sJ0,(OJ, less btipu-lale- d expenses, accrues to claimants under the convention with Spain in 134. These remittances, since the pas-sage of that Act, have been paid iusuch notes. The claimants insist that the Government ought to require payment in coin. The subject may be deemed worthy of your attention. No arrangement has as yet been reached for the settlementof ourclaims for British depredations upon the com-merce of the United States. I have feij it my duty to decline the propo8" of arbitration made by her jesty's Go-vernment, becau" hitherto been accompao'"' "i' reservations and limi-taM- - o incompatible with the rights, interest and honor of our country. It is not to be apprehended that Jreat Britain will persist In her refusal to satisfy these just and reasonable claims, which involve the sacred principle of n, a principle hence-forth not more important to the United States than to all other commercial na-tions. The West India Islauds were settled and colonized by Kuropean States, simultaneously with the settlement and colonization of the American Conti- nent. Most of the colonies planted here became independent nations iu the close of the last and the beginning of the present century. Our ow n country embraces communities which at one period were colonies of Great Britain, France, Spain, Holland, Sweden and .Bussia. The people in the West Indies, with the exception of those of th? Island of llayti. have neither attained nor aspired to indepen- dence, nor have they become prepared for self-defens- e. Although possessing considerable commercial val-ue, they have been held by the several European States which colonized or at sometime conquered them, chiefly for pinurposes of military and naval strategy, carrying out European policy and desigua in regard to this Continent. Iu our revolutionary war ports and harbors n the Wet India Islands were used by our enemy to the great injury and embarassmentof theUnited states. V e had the same experience In our second war with Great Britain, liie same European policy for a long tune excluded us even from trade with The oldest couple in Ohio ; J. and Mrs. Boyd, at Ironton. and she 107. |