Presidential Campaign of 1864?—?Fremont’s Withdrawal?—?Wade and Davis?—?Peace and War Democrats?—?Rebel Sympathizers?—?October Election?—?Result of Presidential Election?—?Speech to Pennsylvanians?—?Speech at a Serenade?—?Letter to a Soldier’s Mother?—?Opening of Congress?—?Last Annual Message.

The Presidential campaign of 1864, was, in several of its aspects, an anomaly. The amount of low blackguard and slang dealt out against the Administration, was perhaps to have been expected in a land where personal abuse seems to have become regarded as so vital an accompaniment of a National Election, that its absence in any exciting canvass would give rise to grave fears that positive Constitutional requirements had been disregarded.

Though freedom, in such instances, far too often is wrested into the vilest abuse, it was in truth passing strange that an Administration should be so violently assailed by its opponents as despotic and tyrannical, when the very fact that such strictures and comments were passed upon it, without let or hindrance, by word of mouth and on the printed page, afforded a proof that the despotism, if such there were, was either too mild or too weak to enforce even a decent treatment of itself and its acts. It is safe to say, that, within the limits of that section with which we were under any circumstances to establish harmonious and peaceful relations, according to the requirements of the opposition, not one speech in a hundred, not one editorial in a thousand, would have been permitted under precisely similar circumstances.

General Fremont withdrew his name shortly after the Chicago nominations, that he might not distract and divide the friends of the Union. In his letter of withdrawal he said:

“The policy of the Democratic party signifies either separation, or reËstablishment, with slavery. The Chicago platform is simply separation. General McClellan’s letter of acceptance, is reËstablishment with slavery.... The Republican candidate, on the contrary, is pledged to the reËstablishment of Union without slavery.”

Senator Wade and Henry Winter Davis, who had joined in a manifesto to the people, bitterly denunciatory of the President’s course in issuing his reconstruction proclamation, entered manfully into the canvass in behalf of the Baltimore nominees. The ranks of the supporters of the Government closed steadily up, and pressed on to a success, of which they could not, with their faith in manhood and republican principles, suffer themselves to doubt.

The Opposition were not entirely in accord. It was a delicate position in which the full-blooded Peace Democrat found himself, obliged as he was to endorse a man whose only claim for the nomination was the reputation which he had made as a prominent General engaged in prosecuting an “unnatural, unholy war.” Nor did it afford much alleviation to his distress to remember that this candidate had been loudly assailed in the Convention as the first mover in the matter of arbitrary arrests, against which a sturdy outcry had long been raised by himself and friends. It was unpleasant, moreover, not to be able to forget that the same candidate had been the first to suggest a draft?—?or “conscription,” as your true peace man would call it: that measure so full of horrors, against which unconstitutional act such an amount of indignation had been expended.

Nor was the situation of the War Democrat, if he were indeed honestly and sincerely such, much better. He could not shut his eyes to the fact, that his candidate’s military record, whatever else it might have established, did not evince very remarkable vigor and celerity in his movements, as compared with other Generals then and since prominently before the public. Even had he blundered energetically, in that there would have been some consolation. The thought, not unpleasant to the Pendletonian, of the possibility of the General’s death during his term of office, stirred up certain other thoughts which he would rather have avoided.

However, it must be said, that, taken as a whole, the Opposition came up to the work more vigorously than might have been supposed, and carried on their campaign in as blustering and defiant a style as if victory were sure to perch upon their banners. There was the usual amount of cheap enthusiasm, valiant betting, and an unusual amount, many thought, of cheating?—?at least, the results of investigations at Baltimore and Washington, conducted by a military tribunal, to a casual observer appeared to squint in that direction.

Richmond papers were, for a marvel, quite unanimous in the desire that Mr. Lincoln should not be reËlected. The rebel Vice-President declared that the Chicago movement was “the only ray of light which had come from the North during the war.” European sympathizers with the rebellion, likewise, were opposed to Mr. Lincoln’s reËlection, and their organs on the Continent and in the provinces did their best to abuse him shockingly.

The State elections in Ohio, Pennsylvania, and Indiana, occurring in October, created much consternation in the opposition ranks?—?that in the latter State particularly, which had been set down positively as upon their side, but insisted, upon that occasion, in common with the first two in pronouncing unequivocally in favor of the Administration candidates.

The result could no longer be doubtful. Yet the most of the supporters of McClellan kept up their talk, whatever their thoughts may have been.

No opportunity for talk, even, was afforded when the results of the election of November 8th became known. Abraham Lincoln and Andrew Johnson?—?whom an opposition journal, with rarest refinement and graceful courtesy, concentrating all its malignity into the intensest sentence possible, had characterized as “a rail-splitting buffoon and a boorish tailor, both from the backwoods, both growing up in uncouth ignorance”?—?these men of the people carried every loyal State, except Kentucky, New Jersey, and Delaware, the vote of soldiers in service having been almost universally given to them.

Of the four million, thirty-four thousand, seven hundred and eighty-nine votes cast, Mr. Lincoln received, according to official returns, two million, two hundred and twenty-three thousand, and thirty-five; a majority on the aggregate popular vote, of four hundred and eleven thousand, two hundred and eighty-one.

The President elect by a plurality in 1860, he was reËlected in 1864 by a majority decisive and unmistakable.

Having been serenaded early in the morning following his reËlection, by Pennsylvanians then in Washington, he thus gave utterance to his feelings:

“Friends and Fellow-Citizens:?—?Even before I had been informed by you that this compliment was paid me by loyal citizens of Pennsylvania friendly to me, I had inferred that you were of that portion of my countrymen who think that the best interests of the nation are to be subserved by the support of the present administration. I do not pretend to say that you, who think so, embrace all the patriotism and loyalty of the country; but I do believe, and I trust without personal interest, that the welfare of the country does require that such support and indorsement be given. I earnestly believe that the consequences of this day’s work if it be as you assume, and as now seems probable, will be to the lasting advantage if not to the very salvation of the country. I cannot, at this hour, say what has been the result of the election, but whatever it may be, I have no desire to modify this opinion: that all who have labored to-day in behalf of the Union organization, have wrought for the best interest of their country and the world, not only for the present, but for all future ages. I am thankful to God for this approval of the people; but while deeply grateful for this mark of their confidence in me, if I know my heart, my gratitude is free from any taint of personal triumph. I do not impugn the motives of any one opposed to me. It is no pleasure to me to triumph over any one, but I give thanks to the Almighty for this evidence of the people’s resolution to stand by free government and the rights of humanity.”

When the result was definitely known, at a serenade given in his honor on the night of November 10th, by the various Lincoln and Johnson Clubs of the District, he said:

“It has long been a grave question whether any Government, not too strong for the liberties of its people, can be strong enough to maintain its existence in great emergencies. On this point the present rebellion brought our Government to a severe test, and a Presidential election occurring in a regular course during the rebellion, added not a little to the strain.

“If the loyal people united were put to the utmost of their strength by the rebellion, must they not fail when divided and partially paralyzed by a political war among themselves? But the election was a necessity?—?we can not have free government without elections; and if the rebellion could force us to forego or postpone a national election, it must fairly claim to have already conquered and ruined us. The strife of the election is but human nature practically applied to the facts of the case. What has occurred in this case must ever recur in similar cases. Human nature will not change. In any future great national trial, compared with the men of this, we shall have as weak and as strong, as silly and as wise, as bad and as good. Let us, therefore, study the incidents of this, as philosophy to learn wisdom from; and none of them as wrongs to be revenged.

“But the election, along with its incidental and undesirable strife, has done good too. It has demonstrated that a people’s government can sustain a national election in the midst of a great civil war. Until now it has not been known to the world that this was a possibility. It shows also how sound and how strong we still are. It shows that, even among the candidates of the same party, he who is most devoted to the Union, and most opposed to treason, can receive most of the people’s votes. It shows also, to the extent yet known, that we have more men now than we had when the war began. Gold is good in its place; but living, brave, and patriotic men are better than gold.

“But the rebellion continues; and now that the election is over, may not all having a common interest reunite in a common effort to save our common country? For my own part, I have striven and shall strive to avoid placing any obstacle in the way. So long as I have been here I have not willingly planted a thorn in any man’s bosom. While I am duly sensible to the high compliment of a reËlection, and duly grateful, as I trust, to Almighty God for having directed my countrymen to a right conclusion, as I think, for their good, it adds nothing to my satisfaction that any other man may be disappointed by the result.

“May I ask those who have not differed with me to join with me in this same spirit toward those who have? And now let me close by asking three hearty cheers for our brave soldiers and seamen and their gallant and skilful commanders.”

As indicative of Mr. Lincoln’s warmth and tenderness of heart the following letter will be read with interest. It was addressed to a poor widow, in Boston, whose sixth son, then recently wounded, was lying in a hospital and bears date November 21st, 1864.

“Dear Madam:?—?I have been shown in the files of the War Department a statement of the Adjutant-General of Massachusetts, that you are the mother of five sons who have died gloriously on the field of battle. I feel how weak and fruitless must be any word of mine, which should attempt to beguile you from the grief of a loss so overwhelming; but I cannot refrain from tendering to you the consolation that may be found in the thanks of the Republic they died to save. I pray that our Heavenly Father may assuage the anguish of your bereavement, and leave you only the cherished memory of the loved and lost, and the solemn pride that must be yours, to have laid so costly a sacrifice upon the altar of Freedom.

“Yours very sincerely and respectfully,
“Abraham Lincoln.”

The Thirty-eighth Congress commenced its second session on the 5th of December, 1864. On the following day Mr. Lincoln transmitted what was to be his last annual message:

“Fellow-citizens of the Senate and House of Representatives:?—?Again the blessings of health and abundant harvests claim our profoundest gratitude to Almighty God.

“The condition of our foreign affairs is reasonably satisfactory.

“Mexico continues to be a theatre of civil war. While our political relations with that country have undergone no change, we have at the same time strictly maintained neutrality between the belligerents.

“At the request of the States of Costa Rica and Nicaragua, a competent engineer has been authorized to make a survey of the river San Juan and the port of San Juan. It is a source of much satisfaction that the difficulties, which for a moment excited some political apprehension, and caused a closing of the inter-oceanic transit route, have been amicably adjusted, and that there is a good prospect that the route will soon be re-opened with an increase of capacity and adaptation.

“We could not exaggerate either the commercial or the political importance of that great improvement. It would be doing injustice to an important South American State not to acknowledge the directness, frankness, and cordiality with which the United States of Columbia has entered into intimate relation with this Government. A Claim Convention has been constituted to complete the unfinished work of the one which closed its session in 1861.

“The new liberal Constitution of Venezuela having gone into effect with the universal acquiescence of the people, the Government under it has been recognised, and diplomatic intercourse with it has been opened in a cordial and friendly spirit.

“The long-deferred Avis Island claim has been satisfactorily paid and discharged. Mutual payments have been made of the claims awarded by the late Joint Commission for the settlement of claims between the United States and Peru. An earnest and candid friendship continues to exist between the two countries; and such efforts as were in my power have been used to prevent misunderstanding, and avert a threatened war between Peru and Spain.

“Our relations are of the most friendly nature with Chili, the Argentine Republic, Bolivia, Costa Rica, Paraguay, San Salvador, and Hayti. During the past year, no differences of any kind have arisen with any of these Republics. And, on the other hand, their sympathies with the United States are constantly expressed with cordiality and earnestness.

“The claims arising from the seizure of the cargo of the brig Macedonian, in 1821, have been paid in full by the Government of Chili. “Civil war continues in the Spanish port of San Domingo, apparently without prospect of an early close.

“Official correspondence has been freely opened with Liberia, and it gives us a pleasing view of social and political progress in that Republic. It may be expected to derive new vigor from American influence, improved by the rapid disappearance of slavery in the United States.

“I solicit your authority to promise to the Republic a gunboat, at a moderate cost, to be reimbursed to the United States by instalments. Such a vessel is needed for the safety of that State against the native African races, and in Liberian hands it would be more effective in arresting the African slave-trade than a squadron in our own hands.

“The possession of the least authorized naval force would stimulate a generous ambition in the Republic, and the confidence which we should manifest by furnishing it would win forbearance and favor toward the colony from all civilized nations. The proposed overland telegraph between America and Europe by the way of Behring Strait and Asiatic Russia, which was sanctioned by Congress at the last session, has been undertaken under very favorable circumstances by an association of American citizens, with the cordial good will and support as well of this Government as of those of Great Britain and Russia.

“Assurances have been received from most of the South American States of their high appreciation of the enterprise and their readiness to coÖperate in constructing lines tributary to that world-encircling communication.

“I learn with much satisfaction that the noble design of a telegraphic communication between the eastern coast of America and Great Britain has been renewed with full expectation of its early accomplishment.

“Thus it is hoped that with the return of domestic peace the country will be able to resume with energy and advantage her former high career of commerce and civilization. Our very popular and able representative in Egypt died in April last.

“An unpleasant altercation which arose between the temporary incumbent and the Government of the Pacha, resulted in a suspension of intercourse. The evil was promptly corrected on the arrival of the successor in the consulate, and our relations with Egypt as well as our relations with the Barbary Powers, are entirely satisfactory.

“The rebellion which has so long been flagrant in China, has at last been suppressed with the coÖperating good offices of this Government and of the other Western Commercial States. The judicial consular establishment has become very difficult and onerous, and it will need legislative requisition to adapt it to the extension of our commerce, and to the more intimate intercourse which has been instituted with the Government and people of that vast empire.

“China seems to be accepting with hearty good-will the conventional laws which regulate commerce and social intercourse among the Western nations.

“Owing to the peculiar situation of Japan, and the anomalous form of its Government, the action of that Empire in performing treaty stipulations is inconsistent and capricious. Nevertheless good progress has been effected by the Western Powers, moving with enlightened concert. Our own pecuniary claims have been allowed, or put in course of settlement, and the Inland Sea has been reopened to Commerce.

“There is reason also to believe that these proceedings have increased rather than diminished the friendship of Japan toward the United States.

“The ports of Norfolk, Fernandino, and Pensacola have been opened by proclamation.

“It is hoped that foreign merchants will now consider whether it is not safer and more profitable to themselves as well as just to the United States, to resort to these and other open ports, than it is to pursue, through many hazards and at vast cost, a contraband trade with other ports which are closed, if not by actual military operations, at least by a lawful and effective blockade.

“For myself, I have no doubt of the power and duty of the Executive, under the laws of nations, to exclude enemies of the human race from an asylum in the United States. If Congress should think that proceedings in such cases lack the authority of law, or ought to be further regulated by it, I recommend that provision be made for effectually preventing foreign slave-traders from acquiring domicil and facilities for their criminal occupation in our country.

“It is possible that if this were a new and open question, the maritime powers, with the light they now enjoy, would not concede the privileges of a naval belligerent to the insurgents of the United States, destitute as they are and always have been, equally of ships, and of ports and harbors.

“Disloyal enemies have been neither less assiduous nor more successful during the last year than they were before that time, in their efforts, under favor of that privilege, to embroil our country in foreign wars. The desire and determination of the maritime States to defeat that design are believed to be as sincere as, and cannot be more earnest than our own.

“Nevertheless, unforseen political difficulties have arisen, especially in Brazilian and British ports, and on the Northern boundary of the United States, which have required and are likely to continue to require the practice of constant vigilance, and a just and conciliatory spirit on the part of the United States, as well as of the nations concerned and their Governments. Commissioners have been appointed under the treaty with Great Britain, in the adjustment of the claims of the Hudson’s Bay and Puget Sound Agricultural Companies in Oregon, and are now proceeding to the execution of the trust assigned to them.

“In view of the insecurity of life in the region adjacent to the Canadian border by recent assaults and depredations committed by inimical and desperate persons who are harbored there, it has been thought proper to give notice that after the expiration of six months, the period conditionally stipulated in the existing arrangements with Great Britain, the United States must hold themselves at liberty to increase their naval armament upon the lakes, if they shall find that proceeding necessary.

“The condition of the Border will necessarily come into consideration in connection with the continuing or modifying the rights of transit from Canada through the United States, as well as the regulation of imposts, which were temporarily established by the Reciprocity Treaty of the 5th of June, 1864. I desire, however, to be understood while making this statement that the Colonial authorities are not deemed to be intentionally unjust or unfriendly toward the United States; but, on the contrary, there is every reason to expect that, with the approval of the Imperial Government, they will take the necessary measures to prevent new incursions across the border.

“The act passed at the last session for the encouragement of immigration has, as far as was possible, been put into operation.

“It seems to need an amendment which will enable the officers of the Government to prevent the practice of frauds against the immigrants while on their way and on their arrival in the ports, so as to secure them here a free choice of avocations and place of settlement.

“A liberal disposition toward this great National policy is manifested by most of the European States, and ought to be reciprocated on our part by giving the immigrants effective National protection. I regard our immigrants as one of the principal replenishing streams which are appointed by Providence to repair the ravages of internal war, and its wastes of National strength and health. “All that is necessary is, to secure the flow of that stream in its present fullness, and to that end, the Government must, in every way, make it manifest that it neither needs nor designs to impose involuntary military service upon those who come from other lands to cast their lot in our country.

“The financial affairs of the Government have been successfully administered. During the last year the legislation of the last session of Congress has beneficially affected the revenue, although sufficient time has not yet elapsed to experience the full effect of several of the provisions of the act of Congress imposing increased taxation. The receipts during the year, from all sources, upon the basis of warrants signed by the Secretary of the Treasury, including loans and the balance in the Treasury on the first day of July, 1863, were $1,394,796,007 62, and the aggregate disbursements, upon the same basis, were $1,298,056,101 89, leaving a balance in the Treasury, as shown by warrants, of $96,739,905 73. Deduct from these amounts the amount of the principal of the public debt redeemed, and the amount of issues in substitution therefor, and the actual cash operations of the Treasury were: Receipts, $3,075,646 77; disbursements, $865,734,087 76; which leaves a cash balance in the Treasury of $18,842,558 71. Of the receipts, there were derived from customs, $102,316,152 99; from lands, $588,333 29; from direct taxes, $475,648 96; from internal revenues, $109,741,134 10; from miscellaneous sources, $47,511,448; and from loans applied to actual expenditures, including former balance, $623,443,929 13. There were disbursed for the civil service, $27,505,599 46; for pensions and Indians, $7,517,930 97; for the War Department, $60,791,842 97; for the Navy Department, $85,733,292 79; for interest of the public debts, $53,685,421 69; making an aggregate of $865,234,081 86, and leaving a balance in the Treasury of $18,842,558 71, as before stated.

“For the actual receipts and disbursements for the first quarter, and the estimated receipts and disbursements for the three remaining quarters of the current fiscal year, and the general operations of the Treasury in detail, I refer you to the report of the Secretary of the Treasury.

“I concur with him in the opinion, that the proportion of the moneys required to meet the expenses consequent upon the war derived from taxation, should be still further increased; and I earnestly invite your attention to this subject, to the end that there may be such additional legislation as shall be required to meet the just expectations of the Secretary.

“The public debt, on the first day of May last, as appears by the books of the Treasury, amounted to $1,740,690,489 49. Probably, should the war continue for another year, that amount may be increased by not far from five hundred millions. Held, as it is for the most part, by our own people, it has become a substantial branch of national, though private property.

“For obvious reasons, the more nearly this property can be distributed among all the people, the better. To forward general distribution, greater inducements to become owners, might, perhaps, with good effect and without injury, be presented to persons of limited means. With this view, I suggest whether it might not be both expedient and competent for Congress to provide that a limited amount of some future issue of public securities might be held, by any bon fide purchaser, exempt from taxation and from seizure for debt, under such restrictions and limitations as might be necessary to guard against abuse of so important a privilege. This would enable prudent persons to set aside a small annuity against a possible day of want.

“Privileges like these would render the possession of such securities, to the amount limited, most desirable to every person of small means who might be able to save enough for the purpose. The great advantage of citizens being creditors as well as debtors, is obvious. Men readily perceive that they cannot be much oppressed by a debt which they owe to themselves.

“The public debt on the first day of July last, although somewhat exceeding the estimate of the Secretary of the Treasury made to Congress at the commencement of last session, falls short of the estimate of that office made in the succeeding December as to its probable amount at the beginning of this year, by the sum of $3,995,079 33. This fact exhibits a satisfactory condition and conduct of the operations of the Treasury.

“The National banking system is proving to be acceptable to capitalists and the people. On the 25th day of November, five hundred and eighty-four National Banks had been organized, a considerable number of which were conversions from State banks. Changes from the State system to the National system are rapidly taking place, and it is hoped that very soon there will be in the United States no banks of issue not authorized by Congress, and no bank-note circulation not secured by the government. That the government and the people will derive general benefit from this change in the banking system of the country can hardly be questioned.

“The National system will create a reliable and permanent influence in support of the national credit, and protect the people against losses in the use of paper money. Whether or not any further legislation is advisable for the suppression of State bank issues, it will be for Congress to determine. It seems quite clear that the Treasury cannot be satisfactorily conducted unless the government can exercise restraining power over the bank-note circulation of the country.

“The Report of the Secretary of War, and the accompanying documents, will detail the campaigns of the armies in the field since the date of the last annual Message, and also the operations of the several administrative bureaus of the War Department during the last year.

“It will also specify the measures deemed essential for the national defence, and to keep up and supply the requisite military force.

“The Report of the Secretary of the Navy presents a comprehensive and satisfactory exhibit of the affairs of that department and of the naval service. It is a subject of congratulation and laudable pride to our countrymen, that a navy of such vast proportions has been organized in so brief a period and conducted with so much efficiency and success.

“The general exhibits of the Navy, including vessels under construction, on the first of December, 1864, shows a total of 671 vessels, carrying 4,610 guns, and 510,396 tons?—?being an actual increase during the year over and above all losses by shipwreck or in battle, of 83 vessels, 167 guns, and 42,427 tons. The total number at this time in the naval service, including officers, is about 51,000. There have been captured by the Navy during the year, 324 vessels, and the whole number of naval captures since hostilities commenced is 1,379, of which 267 are steamers. The gross proceeds arising from the sale of condemned prize property, thus far reported, amount to $14,396,250 51.

“A large amount of such proceeds is still under adjudication and yet to be reported. The total expenditures of the Navy Department, of every description, including the cost of the immense squadrons that have been called into existence, from the 4th of March, 1861, to the 1st of November, 1864, are $238,647,262 35. Your favorable consideration is invited to the various recommendations of the Secretary of the Navy, especially in regard to a navy yard and suitable establishment for the construction and repair of iron vessels, and the machinery and armature for our ships, to which reference was made in my last annual message.

“Your attention is also invited to the views expressed in the report in relation to the legislation of Congress at its last session in respect to prizes on our inland waters.

“I cordially concur in the recommendation of the Secretary as to the propriety of creating the new rank of Vice-admiral in our naval service.

“Your attention is invited to the report of the Postmaster-General, for a detailed account of the operations and financial condition of the Post-Office Department. The postal revenues for the year ending June 30, 1864, amounted to $12,438,253 78, and the expenditures to $12,644,786 20; the excess of expenditures over receipts being $206,532 42.

“The views presented by the Postmaster-General on the subject of special grants by the Government in aid of the establishment of new lines of ocean mail steamships, and the policy he recommends for the development of increased commercial intercourse with adjacent and neighboring countries, should receive the careful consideration of Congress.

“It is of noteworthy interest that the steady expansion of population, improvement and governmental institutions over the new and unoccupied portions of our country have scarcely been checked, much less impeded or destroyed by our great civil war, which, at first glance, would seem to have absorbed almost the entire energies of the Nation.

“The organization and admission of the State of Nevada has been completed in conformity with law, and thus our excellent system is firmly established in the mountains which once seemed a barren and uninhabitable waste between the Atlantic States and those which have grown up on the coast of the Pacific Ocean.

“The Territories of the Union are generally in a condition of prosperity and growth. Idaho and Montana, by reason of their great distance and the interruption of communication with them by Indian hostilities, have been only partially organized; but it is understood that those difficulties are about to disappear, which will permit their governments, like those of the others, to go into speedy and full operation.

“As intimately connected with and promotive of this material growth of the Nation, I ask the attention of Congress to the valuable information and important recommendation relating to the public lands, Indian affairs, the Pacific Railroad, and mineral discoveries contained in the report of the Secretary of the Interior, which is herewith transmitted, and which report also embraces the subjects of the patents, pensions, and other topics of public interest pertaining to his Department.

“The quantity of public land disposed of during the five quarters ending on the 30th of September last, was 4,221,342 acres, of which 1,538,614 acres were entered under the Homestead law. The remainder was located with military land warrants, agricultural script certified to States for railroads, and sold for cash. The cash received from sales and location fees was $1,019,446. The income from sales during the fiscal year ending June 30, 1864, was $678,007 21, against $136,077 95, received during the preceding year. The aggregate number of acres surveyed during the year has been equal to the quantity disposed of, and there are open to settlement about 133,000,000 acres of surveyed land.

“The great enterprise of connecting the Atlantic with the Pacific States by railways and telegraph lines has been entered upon with a vigor that gives assurance of success, notwithstanding the embarrassments arising from the prevailing high prices of materials and labor. The route of the main line of the road has been definitely located for one hundred miles westward from the initial point at Omaha City, Nebraska, and a preliminary location of the Pacific Railroad of California has been made from Sacramento eastward to the great bend of Mucker river, in Nevada. Numerous discoveries of gold, silver and cinnabar mines have been added to the many heretofore known, and the country occupied by the Sierra Nevada and Rocky Mountains and the subordinate ranges now teems with enterprising labor which is richly remunerative. It is believed that the products of the mines of precious metals in that region have, during the year reached, if not exceeded, $100,000,000 in value.

“It was recommended in my last annual message, that our Indian system be remodeled. Congress, at its last session, acting upon the recommendation, did provide for reorganizing the system in California, and it is believed that under the present organization the management of the Indians there will be attended with reasonable success. Much yet remains to be done to provide for the proper government of the Indians in other parts of the country, to render it secure for the advancing settler and to provide for the welfare of the Indian. The Secretary reiterates his recommendations, and to them the attention of Congress is invited.

“The liberal provisions made by Congress for paying pensions to invalid soldiers and sailors of the Republic, and to the widows, orphans and dependent mothers of those who have fallen in battle, or died of disease contracted, or of wounds received in the service of their country, have been diligently administered.

“There have been added to the pension rolls during the year ending the thirtieth day of June last, the names of 16,770 invalid soldiers, and of 271 disabled seamen, making the present number of army invalid pensioners 22,767, and of navy invalid pensioners 712. Of widows, orphans and mothers, 22,198 have been placed on the army pension rolls, and 248 on the navy rolls.

“The present number of Army pensioners of this class is 25,433, and of Navy pensioners 793. At the beginning of the year, the number of revolutionary pensioners was 1,430. Only twelve of them were soldiers, of whom seven have since died. The remainder are those who, under the law, receive pensions because of relationship to revolutionary soldiers.

“During the year ending the thirtieth of June, 1864, $4,504,616 92 have been paid to pensioners of all classes.

“I cheerfully commend to your continued patronage the benevolent institutions of the District of Columbia, which have hitherto been established or fostered by Congress, and respectfully refer for information concerning them, and in relation to the Washington Aqueduct, the Capitol, and other matters of local interest to the report of the Secretary.

“The Agricultural Department, under the supervision of its present energetic and faithful head, is rapidly commending itself to the great and vital interest it was intended to advance. It is peculiarly the People’s Department, in which they feel more directly concerned than in any other, I commend it to the continued attention and fostering care of Congress.

“The war continues. Since the last annual message, all the important lines and positions then occupied by our forces have been maintained, and our armies have steadily advanced, thus liberating the regions left in the rear, so that Missouri, Kentucky, Tennessee, and parts of other States have again produced reasonably fair crops.

“The most remarkable feature in the military operations of the year, is General Sherman’s attempted march of three hundred miles directly through insurgent regions. It tends to show a great increase of our relative strength, that our General-in-chief should feel able to confront and hold in check every active force of the enemy, and yet to detach a well-appointed, large army to move on such an expedition. The result not being yet known, conjecture in regard to it is not here indulged.

“Important movements have also occurred during the year to the effect of moulding society for ductility in the Union. Although short of complete success, it is much in the right direction that twelve thousand citizens in each of the States of Arkansas and Louisiana, have organized loyal State governments with free Constitutions, and are earnestly struggling to maintain and administer them.

“The movement in the same direction, more extensive, though less definite, in Missouri, Kentucky, and Tennessee, should not be overlooked.

“But Maryland presents the example of complete success. Maryland is secure to liberty and union for all the future. The genius of rebellion will no more claim Maryland. Like another foul spirit, being driven out, it may seek to tear her but it will rule her no more.

“At the last Session of Congress, a proposed amendment of the Constitution abolishing slavery throughout the United States, passed the Senate, but failed, for lack of the requisite two-thirds vote in the House of Representatives. Although the present is the same Congress, and nearly the same members, and without question on the patriotism of those who stood in opposition, I venture to recommend the consideration and passage of the measure at the present session.

“Of course the abstract question is not changed, but an intervening election shows almost certainly that the next Congress will pass the measure, if this does not. Hence there is only a question of time as to when the proposed amendment will go to the States for their action; and as it is to go at all events, may we not agree that the sooner the better? It is not claimed that the election has imposed a duty on members to change their views or their votes any further than as an additional element to be considered. Their judgment may be affected by it.

“It is the voice of the people, now for the first time heard upon the question. In a great national crisis like ours, unanimity of action among those seeking a common end is very desirable, almost indispensable, and yet an approach to such unanimity is attainable, only as some deference shall be paid to the will of the majority, simply because it is the will of the majority.

“In this case, the common end is the maintenance of the Union, and among the means to secure that end, such will, through the election, is most clearly declared in favor of such Constitutional Amendment. The most reliable indication of public purpose in this country is derived through our popular election. Judging by the recent canvass and its result, the purpose of the people within the loyal States to maintain the integrity of the Union was never more firm nor more nearly unanimous than now.

“The extraordinary calmness and good order with which the millions of voters met and mingled at the polls, give strong assurance of this. Not only those who supported the ‘Union Ticket,’ so called, but a great majority of the opposing party also, may be fairly claimed to entertain and to be actuated by the same purpose. It is an unanswerable argument to this effect that no candidate to any office whatever, high or low, has ventured to seek votes on the avowal that he was for giving up the Union.

“There has been much impugning of motives, and heated controversy as to the proper means and best mode of advancing the Union cause, but in the distinct issue of Union or no Union, the politicians have shown their distinctive knowledge that there is no diversity among the people. In affording the people a fair opportunity of showing one to another and to the world this firmness and unanimity of purpose, the election has been of vast value to the National cause.

“The election has exhibited another fact not less valuable to be known in the fact that we do not approach exhaustion in the most important branch of the national resources, that of living men. While it is melancholy to reflect that the war has filled so many graves, and carried mourning to so many hearts, it is some relief to know that, compared with the surviving, the fallen have been so few. While corps, and divisions, and brigades, and regiments have formed, and fought and dwindled, and gone out of existence, a great majority of the men who composed them are still living. The same is true of the naval service. The election returns prove this. So many votes could not else be found. The States regularly holding elections, both now and four years ago, to wit California, Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, West Virginia, and Wisconsin, cast 3,982,011 votes now against 3,870,222 then, to which are to be added 33,762 cast now in the new States of Kansas and Nevada, which States did not vote in 1860; thus swelling the aggregate to 4,075,773, and the net increase during the three years and a half of war to 145,751.

“To this, again, should be added the number of all soldiers in the field from Massachusetts, Rhode Island, New Jersey, Delaware, Indiana, Illinois, and California, who, by the laws of those States, could not vote away from their homes, and which number cannot be less than ninety thousand. Nor yet is this all. The number in organized territories is triple now what it was four years ago, while thousands, white and black, join us as the National army forces back the insurgent lines. So much is shown, affirmatively and negatively, by the election.

“It is not natural to inquire how the increase has been produced, or to show that it would have been greater but for the war, which is partially true; the important fact remaining demonstrated, that we have more men now than we had when the war began; that we are not exhausted, nor in process of exhaustion; that we are gaining strength, and may, if need be, maintain the contest indefinitely. This as to men.

“National resources are now more complete and abundant than ever; the National resources, then, are unexhausted, and, as we believe, inexhaustible. The public purpose to reËstablish and maintain the National authority is unchanged, and, as we believe, unchangeable. The manner of continuing the effort remains to choose. On careful consideration of all the evidence accessible, it seems to me that no attempts at negotiation with the insurgent leader could result in any good.

“He would accept of nothing short of the severance of the Union. His declarations to this effect are explicit and oft-repeated. He does not attempt to deceive us. He affords us no excuse to deceive ourselves. We cannot voluntarily yield it. Between him and us the issue is distinct, simple, and inflexible. It is an issue which can only be tried by war, and decided by victory.

“If we yield, we are beaten; if the Southern people fail him, he is beaten?—?either way, it would be the victory and defeat following war. What is true, however, of him who heads the insurgent cause, is not necessarily true of those who follow. Although he cannot reaccept the Union, they can. Some of them, we know, already desire peace and reunion. The number of such may increase.

“They can at any moment have peace simply by laying down their arms and submitting to the National authority under the Constitution. After so much, the Government could not, if it would, maintain war against them. The loyal people would not sustain, or allow it. If questions should remain, we would adjust them by the peaceful means of legislation, conference, courts, and votes.

“Operating only in constitutional and lawful channels, some certain and other possible questions are and would be beyond the Executive power to adjust; for instance, the admission of members into Congress, and whatever might require the appropriation of money.

“The Executive power itself would be really diminished by the cessation of actual war. Pardons and remissions of forfeiture, however, would still be within Executive control. In what spirit and temper this control would be exercised, can be fairly judged of by the past. A year ago general pardon and amnesty upon specified terms were offered to all except certain designated classes, and it was at this same time made known that the excepted classes were still within contemplation of special clemency.

“During the year many availed themselves of the general provision, and many more would, only that the sign of bad faith in some led to such precautionary measures as rendered the practical power less easy and certain. During the same time, also, special pardons have been granted to individuals of excepted classes, and no voluntary individual application has been denied.

“Thus, practically, the door has been for a full year open to all, except such as were not in condition to make free choice; that is, such as were in custody or under constraint. It is still so open to all; but the time may come, probably will come, when public duty shall demand that it be closed, and that, in lieu, more vigorous measures than heretofore shall be adopted.

“In presenting the abandonment of armed resistance to the National authority, on the part of the insurgents, as the only indispensable condition to ending the war on the part of the Government, I retract nothing heretofore said as to slavery. I repeat the declaration made a year ago, that while I remain in my present position I shall not attempt to retract 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.

“If the people should, by whatever mode, or means, make it an Executive duty to re-enslave such persons, another, and not I, must be their instrument to perform it.

“In stating a single condition of peace, I mean simply to say that the war will cease on the part of the Government whenever it shall have ceased on the part of those who began it.

“Abraham Lincoln.”