State of the Union | Page 3

from present peril have induced them to contribute to the
support of the Government the whole of their limited acquisitions. This
fact imposes peculiar obligations to economy in disbursement and
energy in action.

The revenue from all sources, including loans, for the financial year
ending on the 30th of June, 1861, was $86,835,900.27, and the
expenditures for the same period, including payments on account of the
public debt, were $84,578,834.47, leaving a balance in the Treasury on
the 1st of July of 52,257,065.80. For the first quarter of the financial
year ending on the 30th of September, 1861, the receipts from all
sources, including the balance of the 1st of July, were $102,532,509.27,
and the expenses $98,239,733.09, leaving a balance on the 1st of
October, 1861, of $4,292,776.18.
Estimates for the remaining three quarters of the year and for the
financial year 1863, together with his views of ways and means for
meeting the demands contemplated by them, will be submitted to
Congress by the Secretary of the Treasury. It is gratifying to know that
the expenditures made necessary by the rebellion are not beyond the
resources of the loyal people, and to believe that the same patriotism
which has thus far sustained the Government will continue to sustain it
till peace and union shall again bless the land.
I respectfully refer to the report of the Secretary of War for information
respecting the numerical strength of the Army and for
recommendations having in view an increase of its efficiency and the
well-being of the various branches of the service intrusted to his care. It
is gratifying to know that the patriotism of the people has proved equal
to the occasion, and that the number of troops tendered greatly exceeds
the force which Congress authorized me to call into the field.
I refer with pleasure to those portions of his report which make allusion
to the creditable degree of discipline already attained by our troops and
to the excellent sanitary condition of the entire Army.
The recommendation of the Secretary for an organization of the militia
upon a uniform basis is a subject of vital importance to the future safety
of the country, and is commended to the serious attention of Congress.
The large addition to the Regular Army, in connection with the
defection that has so considerably diminished the number of its officers,
gives peculiar importance to his recommendation for increasing the
corps of cadets to the greatest capacity of the Military Academy.
By mere omission, I presume, Congress has failed to provide chaplains
for hospitals occupied by volunteers. This subject was brought to my
notice, and I was induced to draw up the form of a letter, one copy of

which, properly addressed, has been delivered to each of the persons,
and at the dates respectively named and stated in a schedule, containing
also the form of the letter marked A, and herewith transmitted.
These gentlemen, I understand, entered upon the duties designated at
the times respectively stated in the schedule, and have labored
faithfully therein ever since. I therefore recommend that they be
compensated at the same rate as chaplains in the Army. I further
suggest that general provision be made for chaplains to serve at
hospitals, as well as with regiments.
The report of the Secretary of the Navy presents in detail the operations
of that branch of the service, the activity and energy which have
characterized its administration, and the results of measures to increase
its efficiency and power. Such have been the additions, by construction
and purchase, that it may almost be said a navy has been created and
brought into service since our difficulties commenced.
Besides blockading our extensive coast, squadrons larger than ever
before assembled under our flag have been put afloat and performed
deeds which have increased our naval renown.
I would invite special attention to the recommendation of the Secretary
for a more perfect organization of the Navy by introducing additional
grades in the service.
The present organization is defective and unsatisfactory, and the
suggestions submitted by the Department will, it is believed, if adopted,
obviate the difficulties alluded to, promote harmony, and increase the
efficiency of the Navy.
There are three vacancies on the bench of the Supreme Court--two by
the decease of Justices Daniel and McLean and one by the resignation
of Justice Campbell. I have so far forborne making nominations to fill
these vacancies for reasons which I will now state. Two of the outgoing
judges resided within the States now overrun by revolt, so that if
successors were appointed in the same localities they could not now
serve upon their circuits; and many of the most competent men there
probably would not take the personal hazard of accepting to serve, even
here, upon the Supreme bench. I have