ent is proceeding rapidly in the work of further
reduction. The war estimates are reduced from $516,240,131 to
$33,814,461, which amount, in the opinion of the Department, is adequate
for a peace establishment. The measures of retrenchment in each bureau
and branch of the service exhibit a diligent economy worthy of
commendation. Reference is also made in the report to the necessity of
providing for a uniform militia system and to the propriety of making
suitable provision for wounded and disabled officers and soldiers.

The revenue system of the country is a subject of vital interest to its
honor and prosperity, and should command the earnest consideration of
Congress. The Secretary of the Treasury will lay before you a full and
detailed report of the receipts and disbursements of the last fiscal
year, of the first quarter of the present fiscal year, of the probable
receipts and expenditures for the other three quarters, and the
estimates for the year following the 30th of June, 1866. I might content
myself with a reference to that report, in which you will find all the
information required for your deliberations and decision, but the
paramount importance of the subject so presses itself on my own mind
that I can not but lay before you my views of the measures which are
required for the good character, and I might almost say for the
existence, of this people. The life of a republic lies certainly in the
energy, virtue, and intelligence of its citizens; but it is equally true
that a good revenue system is the life of an organized government. I
meet you at a time when the nation has voluntarily burdened itself with
a debt unprecedented in our annals. Vast as is its amount, it fades away
into nothing when compared with the countless blessings that will be
conferred upon our country and upon man by the preservation of the
nation's life. Now, on the first occasion of the meeting of Congress
since the return of peace, it is of the utmost importance to inaugurate
a just policy, which shall at once be put in motion, and which shall
commend itself to those who come after us for its continuance. We must
aim at nothing less than the complete effacement of the financial evils
that necessarily followed a state of civil war. We must endeavor to
apply the earliest remedy to the deranged state of the currency, and not
shrink from devising a policy which, without being oppressive to the
people, shall immediately begin to effect a reduct