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constitutional action of the Senate. They contain stipulations for extinguishing the possessory rights of the Indians to large and valuable tracts of land. It is hoped that the effect of these Treaties will result in the establishment of permanent friendly relations with such of these tribes as bave been brought into frequent and bloody collision with our outlying settlements and emigrants. Sound policy and our imperative duty to these wards of the government demand our anxious and constant attention to their material wellbeing, to their progress in the arts of civilization, and, above all, to that moral training which, under the blessing of Divine Providence, will confer upon them the elevated and sanctifying influences, the hopes and consolations of the Christian faith.

I suggested in my last annual message the propriety of remodelling our Indian system. Subsequent events have satisfied me of its necessity. The details set forth in the report of the Secretary evince the urgent need for immediate legislative action.

I commend the benevolent institutions, established or patronized by the Government in this district, to your generous and fostering care.

The attention of Congress, during the last session, was engaged to some extent with a proposition for enlarging the water communication between the Mississippi river and the north-eastern seaboard, which proposition, however, failed for the time. Since then, upon a call of the greatest respectability, a Convention has been held at Chicago upon the same subject, a summary of whose views is contained in a memorial addressed to the President and Congress, and which I now have the honour to lay before you. That this interest is one which, ere long, will force its own way, I do not entertain a doubt, while it is submitted entirely to your wisdom as to what can be done now. Augmented interest is given to this subject by the actual commencement of work upon the Pacific railroad, under auspices so favourable to rapid progress and completion. The enlarged navigation becomes a palpable need to the great road.

I transmit the second annual report of the Commissioner of the Department of Agriculture, asking your attention to the developments in that vital interest of the nation. - When Congress assembled a year ago the war had already lasted nearly 20 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 elections, 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 commerce was

constitutional action of the Senate. They contain stipulations for extinguishing the possessory rights of the Indians to large and valuable tracts of land. It is hoped that the effect of these Treaties will result in the establishment of permanent friendly relations with such of these tribes as have been brought into frequent and bloody collision with our outlying settlements and emigrants. Sound policy and our imperative duty to these wards of the government demand our anxious and constant attention to their material well. being, to their progress in the arts of civilization, and, above all

, to that moral training which, under the blessing of Divine Proridence, will confer upon them the elevated and sanctifying influences, the hopes and consolations of the Christian faith.

I suggested in my last annual message the propriety of remodel. ling our Indian system. Subsequent events have satisfied me of its necessity. The details set forth in the report of the Secretary evince the urgent need for immediate legislative action.

I commend the benevolent institutions, established or patronized by the Government in this district, to your generous and fostering care.

The attention of Congress, during the last session, was engaged to some extent with a proposition for enlarging the water communi. cation between the Mississippi river and the north-eastern seaboard, which proposition, however, failed for the time. Since then, upon a call of the greatest respectability, a Convention has been held at Chicago upon the same subject, a summary of whose views is contained in a memorial addressed to the President and Congress, and which I now have the honour to lay before you. That this interest is one which, ere long, will force its own way, I do not entertain a doubt, while it is submitted entirely to your wisdom as to what can be done now. Augmented interest is given to this subject by the actual commencement of work upon the Pacific railroad, under auspices so favourable to rapid progress and completion. The enlarged navigation becomes a palpable need to the great road.

I transmit the second annual report of the Commissioner of the Department of Agriculture, asking your attention to the derelopments in that vital interest of the nation.

When Congress assembled a year ago the war had already lasted nearly 20 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 elections, 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 commerce was

suffering greatly by a few armed vessels built upon and from foreign shores, and we were threatened with such from the same quarter as would sweep our trade from t raise our blockade. We had failed to elicit from Europea ments anything hopeful upon this subject. The prelimin cipation proclamation, issued in September, was running it period to the beginning of the new year. A month late proclamation came, including the announcement that colo of suitable condition would be received into the war ser policy of emancipation, and of employing black soldier the future a new aspect, about which hope, and fear, and tended in uncertain conflict. According to our political a matter of civil administration, the General Governmlawful power to effect emancipation in any State, and time it had been hoped that the rebellion could be suppre out resorting to it as a military measure. It was all deemed possible that the necessity for it might come, an should, the crisis of the contest would then be presented and, as was anticipated, it was followed by dark and dous 11 months having now passed, we are permitted to ta review. The rebel borders are pressed still further ba the complete opening of the Mississippi the country do the rebellion is divided into distinct parts, with no practi nication between them. Tennessee and Arkansas hav stantially cleared of insurgent control, and influential each, owners of slaves and advocates of slavery at the of the rebellion, now declare openly for emancipatio respective States. Of those States not included in the en proclamation, Maryland and Missouri, neither of which would tolerate any restraint upon the extension of slave territories, only dispute now as to the best mode of within their own limits.

Of those who were slaves at the beginning of the re 100,000 are now in The United States military service, half of which number actually bear arms in the ranks; the double advantage of taking so much labour from th cause, and supplying the places which otherwise must be so many white men. So far as tested, it is difficult to

not as good soldiers as any. No servile insurrection, to violence or cruelty, has marked the measures of eman arming the blacks. These measures have been much foreign countries, and contemporary with such discuss of public sentiment there is much improved. At ho measures have been fully discussed, supported, criticinounced, and the annual elections following are highly

to those whose official duty it is to bear the country through this great trial. Thus we have the new reckoning. The crisis which threatened to divide the friends of the Union is past. '

Looking now to the present and future, and with reference to a resumption of the national authority within the States wherein that authority has been suspended, I have thought fit to issue a proclamation, a copy of which is herewith transmitted. On examination of this proclamation it will appear, as is believed, that nothing is attempted beyond what is amply justified by the Constitution. True, the form of an oath is given, but no man is coerced to take it. The man is only promised a pardon in case he voluntarily takes the oath. The Constitution authorizes the Executive to grant or withhold the pardon at his own absolute discretion; and this includes the power to grant on terms, as is fully established by judicial and other authorities.

It is also proffered that if, in any of the States named, a State Government shall be, in the mode prescribed, set up, such Government shall be recognized and guaranteed by The United States, and that under it the State shall, on the constitutional conditions, be protected against invasion and domestic violence. The constitutional obligation of The United States to guarantee to every State in the Union a Republican form of Government, and to protect the State, in the cases stated, is explicit and full. But why tender the benefits of this provision only to a State Government set up in this particular way ? This section of the Constitution contemplates a case wherein the element within a State, favourable to Republican Government, in the Union, may be too feeble for an opposite and hostile element external to, or even within the State; and such are precisely the cases with which we are now dealing.

An attempt to guarantee and protect a revived State Government, constructed in whole, or in preponderating part, from the very element against whose hostility and violence it is to be protected, is simply absurd. There must be a test by which to separate the opposing elements, so as to build only from the sound ; and that test is a sufficiently liberal one, which accepts as sound whoever will make a sworn recantation of his former unsoundness.

But if it be proper to require, as a test of admission to the political body, an oath of allegiance to the Constitution of The United States, and to the Union under it, why also to the laws and proclamations in regard to slavery? Those laws and proclamations 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

UNITED STATES.

UNITED STATES.

to those whose official duty it is to bear the country through this great trial. Thus we have the new reckoning. The crisis which threatened to divide the friends of the Union is past.

Looking now to the present and future, and with reference to a resumption of the national authority within the States wherein that authority has been suspended, I have thought fit to issue a procla mation, a copy of which is herewith transmitted. On examination of this proclamation it will appear, as is believed, that nothing is attempted beyond what is amply justified by the Constitution. True, the form of an oath is given, but no man is coerced to take it. The man is only promised a pardon in case he voluntarily takes the oath. The Constitution authorizes the Executive to grant or withhold the pardon at his own absolute discretion; and this includes the power to grant on terms, as is fully established by judicial and other authorities.

It is also proffered that if, in any of the States named, a State Government shall be in the mode prescribed, set up, such Govern. ment shall be recognized and guaranteed by The United States, and that under it the State shall, on the constitutional conditions, be protected against invasion and domestic violence. The constitutional obligation of The United States to guarantee to every State in the Union a Republican form of Government, and to protect the State, in the cases stated, is explicit and full. But why tender the benefits of this provision only to a State Government set up in this particular way? This section of the Constitution contemplates a case wherein the element within a State, favourable to Republican Government, in the Union, may be too feeble for an opposite and hostile element external to, or even within the State; and such are precisely the cases with which we are now dealing.

An attempt to guarantee and protect a revived State Gorernment, constructed in whole, or in preponderating part, from the very element against whose bostility and violence it is to be protected, is simply absurd. There must be a test by which to separate the opposing elements, so as to build only from the sound; and that test is a sufficiently liberal one, which accepts as sound whoever will make a sworn recantation of his former unsound.

abandon them would be not only to relinquish a lever of p would also be a cruel and an astounding breach of faith add at this point, that while I remain in my present positi not attempt to retract or modify the Emancipation Proc nor shall I return to slavery any person who is free by the that proclamation, or by any of the Acts of Congress. and other reasons it is thought best that support of these shall be included in the oath; and it is believed the Exec lawfully claim it in return for pardon and restoration orights, which he has clear constitutional power to with gether, or grant upon the terms which he shall deem wise public interest. It should be observed, also, that this p oath is subject to the modifying and abrogating power of and supreme judicial decision.

The proposed acquiescence of the national Executi reasonable temporary State arrangement for the freed made with the view of possibly modifying the confusion tution which must, at best, attend all classes by a total of labour throughout whole States. It is hoped that t deeply afflicted people in those States may be somewhat to give up the cause of their affliction, if, to this extent matter be left to themselves; while no power of the natio tive to prevent an abuse is abridged by the proposition.

The suggestion in the proclamation as to maintaining t framework of the State on what is called reconstruction, the hope that it may do good without danger of harm. labour, and avoid great confusion.

But why any proclamation now upon this subject ? tion is beset with the conflicting views that the step delayed too long, or be taken too soon. In some Statest for resumption seem ready for action, but remain ina rently for want of a rallying point-a plan of action. A adopt the plan of B, rather than B that of A? Ar B should agree, how can they know but that the Gener ment here will reject their plan? By the proclamati presented which may be accepted by them as a rallying

ness.

But if it be proper to require, as a test of admission to the political body, an oath of allegiance to the Constitution of The United States, and to the Union under it, why also to the laws and proclamations in regard to slavery ? Those laws and proclamations 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

which they are assured in advance will not be rejected may bring them to act sooner than they otherwise would

The objections to a premature presentation of a national Executive consists in the danger of committa which could be more safely left to further development been taken to so shape the document as to avoid emb from this source. Saying that, on certain terans, certain be pardoned, with rights restored, it is not said that or other terms, will never be included. Saying that ree

will be accepted if presented in a specified way, it is not said it will never be accepted in any other way.

The movements, by State action, for emancipation in several of the States, not included in the Emancipation Proclamation, are matters of profound gratulation. And while I do not repeat in detail what I have heretofore so earnestly urged upon this subject, my general views and feelings remain unchanged; and I trust that Congress will omit no fair opportunity of aiding these important steps to a great consummation.

In the midst of other cares, however important, we must not lose sight of the fact that the war power is still our main reliance. To that power alone can we look, yet 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, who have thus far borne their barder part so nobly and well. And it may be esteemed fortunate that in giving the greatest efficiency to these indispensable arms, we do also honourably recognize 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, enbarged, and perpetuated.

ABRAHAM LINCOLN.

CORRESPONDENCE between Great Britain, France, Spain,

8c., relating to the Affairs of Mexico ;the Occupation of St. Juan d'Ulloa and Vera Cruz by Spanish Troops ; the proposed Offer of the Crown of Mexico to the Archduke Maximilian of Austria; the Demands made by Great Britain, France, and Spain on Mexico; and the Withdrawal of British and Spanish Governments from further Intervention, in the Affairs of Mexico, &c.; also Conferences between the Allied

Commissioners on the Affairs of Mexico.-1862. No. 1.—The Sec". to the Admiralty to Mr. Hammond.(Rec. Feb. 4.) SIR,

Admiralty, January 30, 1862. I am commanded by my Lords Commissioners of the Admiralty to transmit herewith, for the information of Earl Russell, a copy of a letter, dated the 1st instant, from Commodore Dunlop, with its inclosure from Captain Von Donop, of the Jason, reporting the occupation of the Castle of San Juan d'Ulloa and town of Vera Cruz by Spanish troops on the 17th December last.

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