ure
should always be made with economy and only upon public necessity.
Wastefulness, profligacy, or favoritism in public expenditures is
criminal. But there is nothing in the condition of our country or of
our people to suggest that anything presently necessary to the public
prosperity, security, or honor should be unduly postponed.

It will be the duty of Congress wisely to forecast and estimate
these extraordinary demands, and, having added them to our ordinary
expenditures, to so adjust our revenue laws that no considerable
annual surplus will remain. We will fortunately be able to apply to
the redemption of the public debt any small and unforeseen excess of
revenue. This is better than to reduce our income below our necessary
expenditures, with the resulting choice between another change of our
revenue laws and an increase of the public debt. It is quite possible,
I am sure, to effect the necessary reduction in our revenues without
breaking down our protective tariff or seriously injuring any domestic
industry.

The construction of a sufficient number of modern war ships and of their
necessary armament should progress as rapidly as is consistent with care
and perfection in plans and workmanship. The spirit, courage, and skill
of our naval officers and seamen have many times in our history given
to weak ships and inefficient guns a rating greatly beyond that of the
naval list. That they will again do so upon occasion I do not doubt; but
they ought not, by premeditation or neglect, to be left to the risks and
exigencies of an unequal combat. We should encourage the establishment
of American steamship lines. The exchanges of commerce demand stated,
reliable, and rapid means of communication, and until these are provided
the development of our trade with the States lying south of us is
impossible.

Our pension laws should give more adequate and discriminating relief
to the Union soldiers and sailors and to their widows and orphans. Such
occasions as this should remind us that we owe everything to their valor
and sacrifice.

It is a subject of congratulation that there is a near prospect of
the admission into the Union of the Dakotas and Montana and Washington
Territories. This act of justice has been unreasonably delayed in the
case of some of them. The people who have settled these Territories are
intelligent, enterprising, and patriotic, and the accession these new
States will add strength to the nation. It is du