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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 2；257；065。80。 For the first quarter
of the financial year ending on the 3oth 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；239733。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 Courttwo 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 been unwilling to
throw all the appointments north…ward； thus disabling myself from
doing justice to the South on the return of peace； although I may
remark that to transfer to the North one which has heretofore been in
the South would not； with reference to territory and population； be
unjust。
During the long and brilliant judicial career of Judge McLean his
circuit grew into an empire…altogether too large for any one judge to
give the courts therein more than a nominal attendancerising in
population from 1；470；018 in 1830 to 6；151；405 in 1860。
Besides this； the country generally has outgrown our present judicial
system。 If uniformity was at all intended； the system requires that
all the States shall be accommodated with circuit courts； attended by
Supreme judges； while； in fact； Wisconsin； Minnesota； Iowa； Kansas；
Florida； Texas； California； and Oregon have never had any such
courts。 Nor can this well be remedied without a change in the
system； because the adding of judges to the Supreme Court； enough for
the accommodation of all parts of the country with circuit courts；
would create a court altogether too numerous for a judicial body of
any sort。 And the evil； if it be one； will increase as new States
come into the Union。 Circuit courts are useful or they are not
useful。 If useful； no State should be denied them； if not useful； no
State should have them。 Let them be provided for all or abolished as
to all。
Three modifications occur to me； either of which； I think； would be
an improvement upon our present system。 Let the Supreme Court be of
convenient number in every event； then； first； let the whole country
be divided into circuits of convenient size； the Supreme judges to
serve in a number of them corresponding to their own number； and
independent circuit judges be provided for all the rest； or；
secondly； let the Supreme judges be relieved from circuit duties and
circuit judges provided for all the circuits； or； thirdly； dispense
with circuit courts altogether； leaving the judicial function