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THE WAR IN AMERICA.

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THE WAR IN AMERICA. The last American mail brings the full text of the messages of President Lincoln and President Davis to their respective Congresses. President Lincoln's Message. -President Lincoln commences by expressing gratitude for the improved condition of national affairs; and then says, in allusionto Foreign Relations, We remain in peace and friendship with foreign Powers. The efforts of disloyal citizens of the United States to involve us in foreign wars to aid an inexcusable insurrection have been unavailing. Her Britannic Majesty's Government, as was justly. expected, have exercised their authority to prevent the departure of new hostile expeditions from British ports. The Emperor of France has, by a like proceed- iflg, promptly vindicated the neutrality which he proclaimed at the beginning of the contest. Questions of great intricacy and importance have arisen out of the blockade and other belligerent operations between the Government and several of the maritime Powers; but they have been dis- Cussed, and, as far as was possible, accommodated, in a spirit Qf frankness, justice, and national good- will. It is especially gratifying that our prize courts, by the impartiality of their adjudications, llave commanded the respect and confidence of maritime Powers. The supplemental treaty between the United •States and Great Britain for the suppression of the African slave trade, made on the 17th day of Feb- ruary last, has been duly ratified and carried into execution. It is believed that, so far as American ports and American citizens are concerned, that inhuman and odious traffic has been brought to wa end. I shall submit for the consideration of the Senate a convention for the adjustment of the possessory claims in Washington territory, arising out of the treaty of the 15th of June, 1846, between the United States and Great Britain, and which have been the source of some disquiet among the citi- zens of that now rapidly improving part of the country. A novel and important question, involving the extent of the maritime jurisdiction of Spain in the waters which surround the Island of Cuba, has been debated without reaching an agreement; and it is proposed, in an amicable spirit, to refer it to the arbitrament of a friendly Power. A conven- tion. for that purpose will be submitted to the -Sanate. In common with other Western Powers, eur re- lations with Japan have been brought into serious jeopardy, through the perverse opposition of the hereditary aristocracy of the empire of the en- lightened and liberal policy of the Tycoon, designed to bring the "country in the society of nations. It is hoped, although not with entire confidence, that these difficulties may be peacefully overcome. I ask your attention to the claim of the minister re- siding there, for the damages he sustained in the destruction by fire of the residence of the legation -a& Yeddo. The President next refers to the arrangement for the settlement of the Scheldt dues, to the termination of the controversy with the Chilian Government touching the seizure of a United States vessel, and, after referring to some minor questions, he then alludes to Rights of Foreigners in the United States. Incidents occurring in the progress of our civil .war have forced, upon my attention the uncertain state of international questions touching the mights of foreigners in this country, and of United States citizens abroad. In regard to some Go- vernments these rights are at least partially defined by treaties. In no instance, however, is it expressly stipulated that in the event of civil war a foreigner residing in this'country, within the lines of the insurgents, is to be exempted from the rule which classes him as a belligerent in whose behalf the Government of his country cannot expect any privileges or immunities distinct from that character. I regret to say, however, that sech claims have been put forward, and in some instances in behalf of foreigners who have lived in the United States the greater part of their lives. There is reason to believe that many persons born in foreign countries, who have declared their in- tention to become citizens, or who have been fully naturalised, have evaded the military duty re- squired Of them by denying the fact, and thereby throwing upon the Government the burthen of proof. It has been found difficult or impracticable to obtain this proof for want of guides to the proper source of information. These might be supplied by requiring clerks of courts where declarations of intention may be made, or natu- ralisations effected, to send periodically lists of the names of the persons naturalised or declaring their intention to become citizens, to the Secretary of the Interior, in whose department the names might be arranged and printed for general infor- mation. There is also reason to believe that .foreigners frequently become citizens of the United States for the sole purpose of evading duties imposed. by the laws of their native country, vifeo which, on becoming naturalised here, they at once repair, and though never returning to the United States, they still claim the interposition of 'this Government as citizens. Many altercations and great prejudices have heretofore arisen out of this abuse. It is, therefore, submitted to your serious consideration whether it might be desir- able to fix a limit beyond which no citizen of the United States, residing abroad, may claim the interposition of his Government. The right of suffrage has often been assumed and exercised by Aliens under pretence of naturalisation, which they have disavowed when drafted into the mili- tary service. I-submit the expediency of such an amendment of the law as will make the fact of .'▼oting an estoppel against any plea of exemption .for military service, or other civil obligation, on "the ground of alienage. 'Mr. Lincoln next refers to the advancement of science, saying that arrangements have been made 'for a continuous line of telegraph through the Russian empire, and a word is said in favour of the. Atlantic telegraph. The President next praises the consuls for the manner in which they have discharged their duties speaks of the con- dition of the territories as satisfactory; recom- mends a scheme for the encouragement of emigration; acknowledges that injuries may have 'been inflicted upon foreigners, which he says 1 Should be redressed; alludes to the proposal he intends to make to tax foreign consuls in the United States; and then gives a summary of the State of the Finances. '.The operations of the treasury during the last ,year have been successfully conducted. The eaactment by Congress of a national banking law •has (proved a valuable support of the public credit, amd the general legislation in relation to loans has -fully answered the expectation of its favourers. Some amendments may be required to perfect ex- isting laws,but no change in the principles or general scope is believed to be needed. Since these measures have been in operation, all demands on the treasury, including the pay of the army and navy, have been promptly met and fully satisfied. • Jfo considerable body of troops, it is believed, were ever more amply provided and more liberally and punctually paid, and it may be added that by no people were the burdens incidental to a great war more cheerfully borne. The receipts during the -year from all sources, including loans, and the balance in the treasury at its commencement, were 901,125,674 dols. 86c., and the aggregate disbursements, 895,796,630 dols. 65c., leaving a balance on the 1st of July, 1863, 5,329,044 dols. 21c. Of the receipts there were received from customs, 69,059,642 dols. 40c. from internal revenue, 37,640,787 dols. 95c.; from direct tax, 1,485,103 dols. 61c.; from lands, 167,617 dols. 17c. from miscellaneous sources, 3,046,615 dols. 35c.; and from loans, 776,682,361 dols. 57c.; making the aggregate, 901,125,674 dols. 86c. Of the disburse- ments, there were for civil service, 23,253,922 dols. 08c.; for pensions and Indians, 4,216,526 dols. 59c.; for interest on public debt, 24,729,846 dols. 51c.; for the war department, 599,298,600 dols. 83c.; for the navy department, 63,211,105 dols. 27c.; for payment of funded and temporary debt, 181,086,635 dols. 07c.; making the aggregate 895,796,630 dols. 65c., and leaving the balance of 5,329,044 dols. 21c. But the payments of the funded and temporary debt, having been made from moneys borrowed during the year, must be regarded as merely nominal payments, and the money borrowed to make them as merely nominal receipts; and their amount, 181,086,635 dols. 07c. should therefore be deducted both from receipts and disbursements. This being done, there remains as actual receipts, 720,039,039 dols. 79c., and the actual disbursements, 714,709,995 dols.58c., leaving the balance as already stated. The annual receipts and disbursements for the first quarter, and the estimated receipts and disbursements for the re- maining three-quarters of the current fiscal year, 1864, will be shown in detail by the report of the Secretary of the Treasury, to which I invite your attention. It is sufficient to say here that it is not believed that actual results will exhibit a state of the finances less favourable to the country than the estimates of that officer heretofore submitted, whilst it is confidently expected that at the close of the year both disbursements and debt will be found very considerably less than has been anticipated. The Navy. After referring largely to the present position of the Navy and the improvements that still might be made, the President, however, states that the armoured vessels completed and in the service of the Federals, or which are under contract and approaching completion, are believed to exceed in number any other Power; he then points to the superior resources of the country for the construc- tion of a navy compared with those of other coun- tries and after alluding to the prosperity of the postal department during the past year, says it may become self-sustaining in a few years. The sale of public lands, he says, is largely on the increase, and he commends the policy of the government in granting homesteads to actual settlers. Treaties which have been made with the Indians under the arrangement for the removal of certain Indian tribes, are to be submitted to Con- gress, the effect of which it is hoped, will be the establishment of friendly relations between the Indian tribes and the outlying settlements of emigrants. After allusion to some proposals of little importance, the President comes to what may be considered as the most important part of his message. The following passages will pro- bably be read with interest. State of Affairs a Year Ago. When Congress assembled a year ago, the war had already lasted nearly twenty months, and there had been many conflicts on both land and sea, with varying results; the rebellion had been pressed back into reduced limits, yet the tone of public feeling and opinion at home and abroad was not satisfactory. With other signs, the popular elec- tions, then just past, indicated uneasiness among ourselves while, amid much that was cold and menacing, the kindest words coming from Europe were uttered in accents of pity that we were too blind to surrender a hopeless cause. Our com- merce was suffering greatly by a few armed vessels, built upon and furnished from foreign shores, and we were threatened with such addi- tions from the same quarters as would sweep our trade from the sea and raise our blockade. We had failed to elicit from European governments anything hopeful upon this subject. The Emancipation Policy. r The preliminary emancipation proclamation issued in September was running its assigned period to the beginning of the new year. A month later the final proclamation came, including the announcement that coloured men, of suitable con- dition, would be received in the war service. The policy of emancipation and of employing black soldiers gave to the future a new aspect, about which hope, and fear, and doubt contended in un- certain conflict. According to OUT political sys- tem, as a matter of civil administration, the Government had no lawful power to effect emanci- pation in any State, and for a long time it had been hoped that the rebellion could be suppressed without resorting to it as a military measure. It was all the while deemed possible that the neces- sity for it might come, and that if it should, the crisis of the contest would then be presented. It came, and, as was anticipated, was, followed by dark and doubtful days. Eleven months having now passed, we are permitted to take another review. The rebel borders are pressed still further back, and by the complete opening of the Missis- sippi, the country dominated by the rebellion is divided into distinct parts, with no practical com- munication between them. Tennessee and Arkan- sas have been substantially cleared of insurgents' control, and influential citizens in each-owners of slaves and advocates of slavery at the beginning of the rebellion—now declare openly for emanci- pation in their respective States. Of these States, not included in the emancipation proclamation, Maryland and Missouri, neither of which, three years ago, would tolerate any restraint upon the extension of slavery into new territories, only dis- pute as to the best mpde of removing it within their own limits. Of those who were slaves at the beginning of the rebellion, full 100,000 are now in the United States' military service, about one- half of which number actually bear arms in the ranks, thus giving the double advantage of taking so much labour from the insurgents, and supply- ing the places which otherwise must be filled with so many white men. So far as tested, it is difficult to say that they are not as good soldiers as any. No servile insurrection, or tendency to violence, or cruelty has marked the measures of emancipation and arming the blacks. Those mea- sures have been much discussed in foreign coun- tries, and contemporary with such discussion, the tone of public sentiment there is much improved. At home the same measures have been fully dis- cussed, supported, criticised, and denounced, and the annual elections following are highly encou- raging to those whose official duty it is to bear the country through this trial. Thus we have the new reckoning. The crisis which threatened to divide the friends of the Union is past. Oath of Allegiance. Mr. Lincoln next refers to his proclamation, which is a separate article, and which, he contends, is quite justified by the constitution. He also thinks that it is quite proper to require, as a test of loyalty, or in return of re-admission to the rights of citizenship, and a pardon of past misdeeds, an oath of allegiance and a recantation of further movements, and con- tinues :—But if it be proper to require as a test of admission to the political body an oath of alle- giance to the United States and to the Union under it, why not also to the laws and proclama- tions in regard to slavery ? Those laws and procla- mations were enacted and put forth for the purpose of aiding in the suppression of the rebellion. To give them their fullest effect there had to be a pledge for their maintenance. In my judgment, they have aided and will further aid the cause for which they were intended. To now abandon them would be not only to relinquish a lever of power, but would also be a cruel and astounding breach of faith. I may add, at this point, while I remain in my present position I shall not attempt to re- tract or modify the emancipation proclamation, nor shall I return to slavery any person who is free by the terms of that proclamation, or by any of the Acts of Congress. For these and other reasons it is thought best that ..support of these measures shall be included in the oath, and it is believed that the executive may lawfully claim it in return for pardon and restoration of forfeited rights, which he has a clear constitutional power to withhold altogether, or grant upon the terms he shall deem wisest for the public interest. It should be observed, also, that this part of the oath is subject to the modifying and abrogating power of legislation and supreme judicial decision. The proposed acquiescence of the national executive in any reasonable temporary state arrangement for the freed people, is made with the view of peace- ably modifying the confusion and destitution which must at best attend all classes by a total revolution of labour throughout the whole states. It is hoped that the already deeply afflicted people in those states may be somewhat more ready to give up the cause of their affliction-if to this extent this vital matter be left to themselves — while no power of the national executive to prevent an abuse is abridged by the proposition. The War Power Supreme. In conclusion President Lincoln urges that Government should consider the safety of the country under all aspects, but he says:—In the midst of other cares, however important, we must rot lose sight of the fact that the war power is still our main reliance. To that power alone can we look for a time to give confidence to the people in the contested regions that the insurgent power will not again overrun them. Until that confidence shall be established, little can be done anywhere for what is called reconstruction. Hence our chiefest care must still be directed to the army and navy; which have thus far borne their harder part so nobly and well; and it may be esteemed fortunate that in giving the greatest efficiency to these indispensable arms, we do honourably recog- nise the gallant men, from commander to sentinel, who compose them, and to whom more than to others, the world must stand indebted for the home of freedom disenthralled, regenerated, en- larged, and perpetuated. The Confederate States-Message of Presi- dent Davis. President Davis delivered his annual message to the Confederate Congress on Tuesday, December 8th, and like all other Presidents' speeches it is very lengthy. We will, however, endeavour to con- dense it in such a form as may enable our readers to comprehend its character. After a long ¡ review of military affairs he refers to ¡ Foreign Relations. "I regret to inform you," he says, "that there has been no improvement in the state of our rela- tions with foreign countries since my message in January last. On the contrary, there has been a still greater divergence in the conduct of European nations from that practical impartiality which alone deserves the name of neutrality, and their action in some cases has assumed a character positively unfriendly." England and the Confederacy. The unsuccessful steps taken to induce the British Government to withold its sanction from the violation of law by Federals are then detailed, and it is said that if "any doubt remained of the motives by which the British Ministry have been actuated in their con- duct, it would be completely dissipated by the dis- tinct avowals and explanations contained in the published speech recently made by her Majesty's Secretary for Foreign Affairs." He quotes the statement of Earl Russell, that, in his opinion, England would have been for ever infamous if, for the sake of their own interest, they had vio- lated the law of nations, and made war, in con- junction with the slaveholding States of America, against the Federal States; and says:- "The intimation that relations with these States would be discreditable, because they are slaveholding, would probably have been omitted if the official personage who has published it to the world had remembered that these States were, when colonies, made slaveholding by the direct exercise of the power of Great Britain, whose de- pendencies they were, and whose interests in the slave-trade were then supposed to require that her colonies should be made slaveholding." He further continues:—" Her Majesty's Foreign Secretary takes care to leave no doubt of the fur- ther purpose of the British Government to prevent our purchase of vessels in Great Britain, while supplying our enemies with rifles and other muni- tions of war, and states the intention to apply to Parliament for the furtherance of this design, He gives to the United States the assurance that he will do in their favour not only 'everything that the law of nations requires, everything that the present Foreign Enlistment Act requires,' but that he will ask the sanction of Parliament to further measures that her Majesty's ministers may still add.' This language is so unmistakably an official exposition of the policy adopted by the British Government in relation to our affairs, that the duty imposed on me by the Constitution, of givino- you, from time to time, 'information of the state of the Confederacy,' would not have been performed if I had failed to place it distinctly before you." The Finance s. President Davis goes at great length into the subject of the finances, and says, I need hardly say that a prompt and efficacious remedy for the present condition of the currency is -necessary to the successful performance of the functions of government. Fortunately, the resources of our country are so ample, and the spirit of our people so devoted to its cause, that they are ready to make any necessary contribution. Relief is thus entirely within our reach if we have the wisdom to legislate in such manner as render available the means at our disposal." And in another part he says, In addition to the difficulty presented to the necessary operations of the Government, and the efficient conduct of the war, the most deplorable of all its results has been its corrupting influence on the morals of the people. The possession of large amounts of treasury notes has naturally led t@ a desire for in- vestment; and,, with a constantly increasing volume of currency, there has been an equally constant increase of price in all objects of invest- ment. This effect has stimulated purchase by the apparent certainty of profit; and a spirit of speculation has been fostered, which has so de- basing an influence and such ruinous conse- quences, that it is our highest duty to remove the cause, and no measure directed to that end can be too prompt or too stringent." He then goes into the measures adopted to in- duce voluntary funding, in order to avoid an in- crease in the Volume of notes in circulation. These he declares to .have been but partially suc- cessful and the evil, he confesses, has reached such a magnitude, as to permit of no other remedy than the compulsory reduction of the currency to the amount required by the business of the country. Th e Army and Exchange of Prisoners. President Davis next refers, at great length, to the condition of the army, and to the means pro- posed by the Secretary of War for its organisation. He then turns to the interruption of the arrange- ments for th3 exchange of prisoners. "I regret to inform you," he says, "that the enemy have returned to the barbarous policy with which they inaugurated the war, and that the exchange of prisoners has been for some time I suspended. The correspondence of the Com- missioners of Exchange is submitted to you by the Secretary at War, and it has already been published for the information of all now suffering useless imprisonment. The conduct of the autho- rities of the United States has been consistently perfidious on this subject. Systematic and concerted effort," he adds, "has been made to quiet the complaints in the United States of those relatives and friends of the prisoners in our hands who are unable to under- stand why the cartel is not executed in their favour, 'by the groundless assertion that we are the parties who refuse compliance. Attempts are also made to shield themselves from the execra- tion excited by their own odious treatment of our officers and soldiers now captive in their hands, by misstatements, such as that the prisoners held by us are deprived of food. To this last accusation the conclusive answer has been made, that, in ac- cordance with our law and the general orders of the department, the rations of the prisoners are precisely the same, in quantity and quality, as these served out to our own gallant soldiers in the field, and which have been found sufficient to support them in their arduous campaign, while it is not pretended by the enemy that they treat prisoners by the same generous rule." Mexico and the Confederacy. On this subject Mr. Davis says they cannot deny to others the right of self-government which they claim for themselves. "If the Mexican people," he says, "prefer a monarchy to a republic, it is our plain duty cheerfully to acquiesce in their decision, and to evince a sincere and friendly interest in their prosperity. If, however, the Mexicans prefer maintaining their former institutions, we have no reason to apprehend any obstacle to the free exer- cise of their choice. The Emperor of the French has solemnly disclaimed any purpose to impose on Mexico a form of government not acceptable to the nation; and the eminent personage to whom the throne has been tendered declines its accept- ance, unless the offer be sanctioned by the suf- frages of the people. In either event, therefore, we 0 may confidently expect the continuance of those peaceful relations which have been main- tained on the frontier, and even a largede velop- ment of the commerce already existing to the mutual advantage of the two countries." Conclusion of the Message. After mentioning the reports of the Secretary of the Navy, and the Postmaster-General, and again condemning the savage ferocity" with which the Federals are carrying on the war, President Davis concludes as follows :— The hope last year.entertained of an early ter- mination of the war has not been realised. Could carnage have satisfied the appetite of our enemy for the destruction of human life, or grief have appeased their wantom desire to inflict human suffering, there has been bloodshed enough on both sides, and two lands have been sufficiently darkened by the weeds of mourning, to induce a disposition for peace. If unanimity in a people could dispel delusion, it has been displayed too unmistakably not to have silenced the pretence that the Southern States were merely disturbed u by a factious insurrection, and must long since have been admitted that they were but exercising their reserved right to modify their own Govern- ment in such manner as would best secure their own happiness. But these considerations have been powerless to allay the unchristian hate of those who, long accustomed to draw large profits from a union with us, cannot control the rage ex- cited by the Conviction that they have, by their own folly, destroyed the richest sources of their prosperity. They refuse even to listen to pro- posals for the only peace possible between us-a peace-which, recognising the impassable gulf which divides us, may leave the two people sepa- rately to recover from the injuries inflicted on both by the causeless war now waged against us. Having begun the war in direct violation of their constitution, which forbade the attempt to coerce a state, they have been hardened by crime, until they no longer attempt to veil their purpose to destroy the institutions and subvert the sove- reignty and independence of these states. We now know that the only reliable hope for peace is in the vigour of our resistance, as the cessation of their hostility is only to be expected from the pressure of their necessities. The patriotism of the people has proved equal to every sacrifice de- manded by their country's good. We have now been united as a people never were united under like circumstances before. God has blessed us with success disproportionate to our means, and, under His Divine favour, our labours must at last be crowned with the reward due to men who have given all they possessed to the righteous defence of their inalienable rights, their homes, and their altars. +-r"T 1.1'

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