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The failure to pass the post office bill necessarily gives birth to serious reflections. Congress, by refusing to pass the general appropriation bills necessary to carry on the government, may not only arrest its action, but might even destroy its existence. The army, the navy, the judiciary, in short, every department of the government, can no longer perform their functions if Congress refuse the money necessary for their support. If this failure should teach the country the necessity of electing a full Congress in sufficient time to enable the President to convene them in any emergency, even immediately after the old Congress has expired, it will have been productive of great good. In a time of sudden and alarming danger, foreign or domestic, which all nations must expect to encounter in their progress, the very salvation of our institutions may be staked upon the assembling of Congress without delay. If, under such circumstances, the President should find himself in the condition in which he was placed at the close of the last Congress, with nearly half the States of the Union destitute of representatives, the consequences might be disastrous. I therefore recommend to Congress to carry into effect the provisions of the Constitution on this subject, and to pass a law appointing some day previous to the 4th March in each year of odd number for the election of représentatives throughout all the States. They have already appointed a day for the election of electors for President and Vice-President, and this measure has been approved by the country.

I would again express a most decided opinion in favor of the construction of a Pacific railroad, for the reasons stated in my two last annual messages. When I reflect upon what would be the defenceless condition of our States and Territories west of the Rocky mountains in case of a war with a naval power sufficiently strong to interrupt all intercourse with them by the routes across the Isthmus, I am still more convinced than ever of the vast importance of this railroad. I have never doubted the co: stitutional competency of Congress to provide for its construction, but this exclusively under the war-making power. Besides, the Constitution expressly requires, as an imperative duty, that "the United States shall protect each of them [the States] against invasion." I am at a loss to conceive how this protection can be afforded to California and Oregon against such a naval power by any other means. I repeat the opinion contained in my last annual message, that it would be inexpedient for the government to undertake this great work by agents of its own appointment, and under its direct and exclusive control. This would increase the patronage of the Executive to a dangerous extent, and would foster a system of jobbing and corruption which no vigilance on the part of federal officials could prevent. The construction of this road ought, therefore, to be intrusted to incorporated companies, or other agencies, who would exercise that active and vigilant supervision over it which can be inspired alone by a sense of corporate and individual interest. I venture to assert that the additional cost of transporting troops, munitions of war, and necessary supplies for the army across the vast intervening plains to our possessions on the Pacific coast would be greater in such a war than

the whole amount required to construct the road. And yet this resort would, after all, be inadequate for their defence and protection.

We have yet scarcely recovered from the habits of extravagant expenditure produced by our overflowing treasury during several years prior to the commencement of my administration. The financial reverses which we have since experienced ought to teach us all to scrutinize our expenditures with the greatest vigilance, and to reduce them to the lowest possible point. The executive departments of the government have devoted themselves to the accomplishment of this object with considerable success, as will appear from their different reports and estimates. To these I invite the scrutiny of Congress, for the purpose of reducing them still lower, if this be practicable, consistent with the great public interests of the country. In aid of the policy of retrenchment, I pledge myself to examine closely the bills appropriating lands or money, so that if any of these should inadvertently pass both houses, as must sometimes be the case, I may afford them an opportunity for reconsideration. At the same time we ought never to forget that true public economy consists, not in withholding the means necessary to accomplish important national objects confided to us by the Constitution, but in taking care that the money appropriated for these purposes shall be faithfully and frugally expended.

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It will appear from the report of the Secretary of the Treasury that it is extremely doubtful. to say the least, whether we shall be able to pass through the present and the next fiscal year without providing additional revenue. This can only be accomplished by strictly confining the appropriations within the estimates of the different departments, without making an allowance for any additional expenditures which Congress may think proper, in their discretion, to authorize, and without providing for the redemption of any portion of the $20,000,000 of treasury notes which have been already issued. the event of a deficiency, which I consider probable, this ought never to be supplied by a resort to additional loans. It would be a ruinous practice in the days of peace and prosperity to go on increasing the national debt to meet the ordinary expenses of the government. This policy would cripple our resources and impair our credit in case the existence of war should render it necessary to borrow money. Should such a deficiency occur as I apprehend, I would recommend that the necessary revenue be raised by an increase of our present duties on imports. I need not repeat the opinions expressed in my last annual message as to the best mode and manner of accomplishing this object, and shall now merely observe that these have since undergone no change.

The report of the Secretary of the Treasury will explain in detail the operations of that department of the government.

The receipts into the treasury from all sources during the fiscal year ending June 30, 1859, including the loan authorized by the act of June 14. 1858, and the issues of treasury notes authorized by existing laws, were eighty-one million six hundred and ninety-two thousand four hundred and seventy-one dollars and one cent, ($81,692,471 01,) which sum, with the balance of six million three hundred and ninety

eight thousand three hundred and sixteen dollars and ten cents ($6,398,316 10) remaining in the treasury at the commencement of that fiscal year, made an aggregate for the service of the year of eightyeight million ninety thousand seven hundred and eighty-seven dollars and eleven cents, ($88,090,787 11.)

The public expenditures during the fiscal year ending June 30, 1859, amounted to eighty-three million seven hundred and fifty-one thousand five hundred and eleven dollars and fifty-seven cents, ($83,751,511 57.) Of this sum seventeen million four hundred and five thousand two hundred and eighty five dollars and forty-four cents ($17,405, 285 44) were applied to the payment of interest on the public debt and the redemption of the issues of treasury notes. The expenditures for all other branches of the public service during that fiscal year were therefore sixty-six million three hundred and forty-six thousand two hundred and twenty-six dollars and thirteen cents, ($66,346, 226 13.)

The balance remaining in the treasury on the 1st July, 1859, being the commencement of the present fiscal year, was four million three hundred and thirty-nine thousand two hundred and seventy-five dollars and fifty-four cents, ($4,339,275 54.)

The receipts into the treasury during the first quarter of the present fiscal year, commencing July 1, 1859, were twenty million six hundred and eighteen thousand eight hundred and sixty-five dollars and eightyfive cents, ($20,618,865 85.) Of this amount three million eight hundred and twenty-one thousand three hundred dollars ($3,821,300) was received on account of the loan and the issue of treasury notes-the amount of sixteen million seven hundred and ninety-seven thousand five hundred and sixty-five dollars and eighty-five cents ($16,797,565 85) having been received during the quarter from the ordinary sources of public revenue. The estimated receipts for the remaining three-quarters of the present fiscal year to June 30, 1860, are fifty million four hundred and twenty-six thousand four hundred dollars, ($50,426,400.) Of this amount it is estimated that five million seven hundred and fifty-six thousand four hundred dollars ($5,756,400) will be received for treasury notes which may be re-issued under the fifth section of the act of 3d March last, and one million one hundred and seventy thousand dollars ($1,170,000) on account of the loan authorized by the act of June 14, 1858-making six million nine hundred and twenty-six thousand four hundred dollars ($6,926,400) from these extraordinary sources, and forty-three million five hundred thousand dollars ($43,500,000) from the ordinary sources of the public revenue-making an aggregate, with the balance in the treasury on the 1st of July, 1859, of seventy-five million three hundred and eighty-four thousand five hundred and forty-one dollars and eighty-nine cents ($75,384,541 89) for the estimated means of the present fiscal year ending June 30, 1860.

The expenditures during the first quarter of the present fiscal year were twenty million seven thousand one hundred and seventy-four dollars and seventy-six cents, ($20,007,174 76.) Four million six hundred and sixty-four thousand three hundred and sixty-six dollars and seventy-six cents ($4,664,366 76) of this sum were applied to the payment of interest on the public debt and the redemption of the

issues of treasury notes, and the remainder, being fifteen million three hundred and forty-two thousand eight hundred and eight dollars, ($15,342,808,) were applied to ordinary expenditures during the quarter. The estimated expenditures during the remaining three quarters, to June 30, 1860, are forty million nine hundred and ninetyfive thousand five hundred and fifty-eight dollars and twenty-three cents, ($40,995,558 23.) Of which sum two million eight hundred and eighty-six thousand six hundred and twenty-one dollars and thirty-four cents ($2,886,621 34) are estimated for the interest on the public debt. The ascertained and estimated expenditures for the fiscal year ending June 30, 1860, on account of the public debt, are accordingly seven million five hundred and fifty thousand nine hundred and eighty-eight dollars and ten cents, ($7,550,988 10;) and for the ordinary expenditures of the government fifty-three million four hundred and fifty-one thousand seven hundred and forty-four dollars and eighty-nine cents, ($53,451,744 89,) making an aggregate of sixty-one million two thousand seven hundred and thirty-two dollars and ninty-nine cents, ($61,002,732 99;) leaving an estimated balance in the treasury on June 30, 1860, of fourteen million three hundred and eighty-one thousand eight hundred and eight dollars and forty cents, ($14,381,808 40.)

The estimated receipts during the next fiscal year ending June 30, 1861, are sixty-six million two hundred and twenty-five thousand dollars, ($66,225,000,) which, with the balance estimated, as before stated, as remaining in the treasury on the 30th June, 1860, will make an aggregate for the service of the next fiscal year of eighty million six hundred and six thousand eight hundred and eight dollars and forty cents, ($80,606, 808 40.)

The estimated expenditures during the next fiscal year ending 30th June, 1861, are sixty-six million seven hundred and fourteen thousand nine hundred and twenty-eight dollars and seventy-nine cents, ($66,714,928 79.) Of this amount three million three hundred and eighty-six thousand six hundred and twenty-one dollars and thirtyfour cents ($3,386,621 34) will be required to pay the interest on the public debt, leaving the sum of sixty-three million three hundred and twenty-eight thousand three hundred and seven dollars and fortyfive cents ($63,328,307 45) for the estimated ordinary expenditures during the fiscal year ending 30th June, 1861. Upon these estimates a balance will be left in the treasury on the 30th June, 1861, of thirteen million eight hundred and ninety-one thousand eight hundred and seventy-nine dollars and sixty-one cents, ($13,891,879 61.)

But this balance, as well as that estimated to remain in the treasury. on the 1st July, 1860, will be reduced by such appropriations as shall be made by law to carry into effect certain Indian treaties during the present fiscal year, asked for by the Secretary of the Interior, to the amount of five hundred and thirty-nine thousand three hundred and fifty dollars, ($539,350;) and upon the estimates of the Postmaster General for the service of his department the last fiscal year ending 30th June, 1859, amounting to four million two hundred and ninetysix thousand and nine dollars, ($4,296,009,) together with the further

estimate of that officer for the service of the present fiscal year ending 30th June, 1860, being five million five hundred and twenty-six thousand three hundred and twenty-four dollars, ($5,526,324;) making an aggregate or ten million three hundred and sixty-one thousand six hundred and eighty-three dollars. ($10,361,683.)

Should these appropriations be made as requested by the proper departments, the balance in the treasury on the 30th June, 1861, will not, it is estimated, exceed three million five hundred and thirty thousand, one hundred and ninety-six dollars and sixty-one cents, ($3,530,196 61.)

I transmit herewith the reports of the Secretaries of War, of the Navy, of the Interior, and of the Postmaster General. They each contain valuable information and important recommendations well worthy of the serious consideration of Congress.

It will appear from the report of the Secretary of War that the army expenditures have been materially reduced by a system of rigid economy, which, in his opinion, offers every guarantee that the reduction will be permanent. The estimates of the department for the next have been reduced nearly two millions of dollars below the estimates for the present fiscal year, and half a million of dollars below the amount granted for this year at the last session of Congress.

The expenditures of the Post Office Department during the past fiscal year, ending on the 30th of June, 1859, exclusive of payments for mail service specially provided for by Congress out of the general treasury, amounted to $14,964,493 33, and its receipts to $7,968,484 07, showing a deficiency to be supplied from the treasury of $6,996,009 26, against $5,235,677 15 for the year ending 30th June, 1858. The increased cost of transportation, growing out of the expansion of the service required by Congress, explains this rapid augmentation of the expenditures. It is gratifying, however, to observe an increase of receipts for the year ending on the 30th of June, 1859, equal to $481,691 21, compared with those in the year ending on the 30th June, 1858.

It is estimated that the deficiency for the current fiscal year will be $5,988,424 04, but that for the year ending 30th June, 1861, it will not exceed $1,342,473 90, should Congress adopt the measures of reform proposed and urged by the Postmaster General. Since the month of March retrenchments have been made in the expenditures amounting to $1,826,471 annually, which, however, did not take effect until after the commencement of the present fiscal year. The period seems to have arrived for determining the question whether this department shall become a permanent and ever increasing charge upon the treasury, or shall be permitted to resume the self-sustaining policy which had so long controlled its administration. The course of legislation recommended by the Postmaster General for the relief of the department from its present embarrassments, and for restoring it to its original independence, is deserving of your early and earnest consideration.

In conclusion, I would again commend to the just liberality of Congress the local interests of the District of Columbia. Surely the city

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