I fully concur in the opinion expressed by the Secretary, that there is no ground for the objection that a new provision, to include those who furnished substitutes under the former call, would be a breach of contract. To accept a sub-pany with a less number than is required to stitute was to confer a privilege, not to enter into enable it to retain its organization. The diffia contract; and whenever the substitute is ren-culty of obtaining recruits from certain localities, dered liable to conscription, it would seem to follow that the principal, whose place he had taken, should respond for him, as the government had received no consideration for his exemption Where, however, the new provision of law would fail to embrace a substitute now in the ranks, there appears, if the principal should again be conscribed, to be an equitable ground for compensation to the conscript, who then would have added to the service a soldier not otherwise liable to enrolment.

to endure only until the return of the officers regularly commissioned. Where it results from permanent disability incurred in the line of their duty, it would be proper to retire them, and fill the vacancies according to established mode. I would also suggest the organization of an invalid corps, and that the retired officers be transferred to it. Such a corps, it is thought, could be made useful in various employments for which efficient officers and troops are now detached.

impressment law, but the restoration of the currency to such a basis as will enable the department to purchase necessary supplies in the open market, and thus render impressment a rare and exceptionable process.

The same remedy will effect the result, universally desired, of an augmentation of the pay of the army. The proposals made at your previous sessions to increase the pay of the soldier by additional amount of treasury notes, would have conferred little benefit on him; but a radical reform in the currency will restore the pay to a value approximating that which it originally had, and materially improve his condition.

The reports from the ordnance and mining bureaus are very gratifying, and the extension of our means of supply of arms and munitions of war from our home resources has been such as to insure our ability soon to become mainly, if not entirely, independent of supplies from for

ing of guns and projectiles, for the manufacture of small arms and of gunpowder, for the supply of nitre from artificial nitre-beds, and mining operations generally, have been so distributed through the country as to place our resources beyond the reach of partial disasters.

An organization of the general staff of the army would be highly conducive to the efficiency of that most important branch of the service. The plan adopted for the military establishment furnishes a model for the staff of the provisional army, if it be deemed advisable to retain the distinction; but I recommend to your consideration the propriety of abolishing it, and providing for the organization of the several staff corps in such number and with such rank as will meet all the wants of the service. To secure the re-eign countries. The establishments for the castquisite ability for the more important positions, it will be necessary to provide for officers of higher rank than is now authorized for these corps. To give to the officers the proper relation and cointelligence in their respective corps, and to preserve in the chief of each useful influence and control over his subordinates, there should be no gradation on the basis of the rank of the general with whom they might be serving by appointment. To the personal staff of a general it would seem proper to give a grade corresponding with his rank, and the number might be fixed to correspond with his command. To avoid the consequence of discharge upon a change of duty, the variable portion of the personal staff might be taken from the line of the army, and allowed to retain their line commissions.

The recommendations of the Secretary of War on other points are minutely detailed in his report, which is submitted to you, and extending as they do to almost every branch of the service, merit careful consideration.

EXCHANGE OF PRISONERS.

I regret to inform you that the enemy have returned to the barbarous policy with which they inaugurated the war, and that the exchange of prisoners has been for some time suspended. The correspondence of the Commissioners of ExThe disordered condition of the currency, to change is submitted to you by the Secretary of which I have already alluded, has imposed on War, and it has already been published for the government a system of supplying the wants of information of all now suffering useless imprisonthe army, which is so unequal in its operation, ment. The conduct of the authorities of the vexatious to the producer, injurious to the in- United States has been consistently perfidious dustrial interest, and productive of such discon- on this subject. An agreement for exchange, in tent among the people, as only to be justified by the incipiency of the war, had just been concludthe existence of an absolute necessity. The re-ed, when the fall of Fort Donelson reversed the port of the Secretary on this point establishes previous state of things, and gave them an excess conclusively, that the necessity which has forced of prisoners. The agreement was immediately the Bureau of Supply to provide for the army repudiated by them, and so remained till the forby impressment, has resulted from the impos- tune of war again placed us in possession of the sibility of purchase by contract, or in the open larger number. A new cartel was then made, market, except at such rapidly increased rates and under it, for many months, we restored to as would have rendered the appropriations inad- them many thousands of prisoners in excess of equate to the wants of the army. Indeed, it is those whom they held for exchange, and encampbelieved that the temptation to horde supplies ments of the surplus paroled prisoners delivered for the higher prices which could be anticipated up by us were established in the United States, with certainty, has been checked mainly by the where the men were enabled to receive the comfear of the operation of the impressment law; forts and solace of constant communication with and that commodities have been offered in the their homes and families. In July last, the formarkets, principally to escape impressment, and tune of war again favored the enemy, and they obtain higher rates than those fixed by appraise- were enabled to exchange for duty the men prement. The complaints against this vicious sys-viously delivered to them, against those captured tem have been well founded, but the true cause of the evil has been misapprehended. The remedy is to be found, not in a change of the

and paroled at Vicksburgh and Port Hudson. The prisoners taken at Gettysburgh, however, remained in their hands, and should have been

returned to our lines on parole, to await exchange. Instead of executing a duty imposed by the plainest dictates of justice and good faith, pretexts were instantly sought for holding them in permanent captivity. General orders rapidly succeeded each other from the bureau at Washington, placing new constructions on an agreement which had given rise to no dispute while we retained the advantage in the number of prisoners. With a disregard of honorable obligations, almost unexampled, the enemy did not hesitate, in addition to retaining the prisoners captured by them, to declare null the paroles given by the prisoners captured by us the same series of engagements, and liberated on condition of not again serving until exchanged. They have since openly insisted on treating the paroles given by their own soldiers as invalid, and those of our soldiers, given under precisely similar circumstances, as binding. A succession of similar unjust pretensions has been set up in a correspondence tediously prolonged, and every device employed to cover the disregard of an obligation which, between belligerent nations, is only to be enforced by a sense of honor.

unprepared for the cold of a Northern winter, have been conveyed, for imprisonment, during the rigors of the present season, to the most northern and exposed situation that could be selected by the enemy. There, beyond the reach of comforts, and often even of news from home and family, exposed to the piercing cold of northern lakes, they are held by men who cannot be ignorant of, even if they do not design, the probable result. How many of our unfortunate friends and comrades, who have passed unscathed through numerous battles, will perish on Johnson's Island, under the cruel trial to which they are subjected, none but the Omniscient can foretell. That they will endure this barbarous treatment with the same stern fortitude that they have ever evinced in their country's service, we cannot doubt. But who can be found to believe the assertion that it is our refusal to execute the cartel, and not the malignity of the foe, which has caused the infliction of such intolerable cruelty on our own loved and honored defenders?

TRANS-MISSISSIPPI DEPARTMENT.

Regular and punctual communication with the No farther comment is needed on this subject; | Trans-Mississippi is so obstructed as to render but it may be permitted to direct your special difficult a compliance with much of the legislaattention to the close of the correspondence sub- tion vesting authority in the executive branch of mitted to you, from which you will perceive that the government. To supply vacancies in offices; the final proposal made by the enemy, in settle- to exercise discretion on certain matters connectment of all disputes under the cartel, is, that we ed with the military organizations; to control should liberate all prisoners held by us, without the distribution of the funds collected from taxathe offer to release from captivity any of those tion or remitted from the Treasury; to carry on held by them. the operations of the Post-Office department, In the mean time a systematic and concerted and other like duties, require, under the Constieffort has been made to quiet the complaints in tution and existing laws, the action of the Presithe United States of those relatives and friends dent and heads of departments. The necessities of of the prisoners in our hands who are unable to the military service frequently forbid delay, and understand why the cartel is not executed in some legislation is required, providing for the extheir favor, by the groundless assertion that we ercise of temporary authority, until regular action are the parties who refuse compliance. Attempts can be had at the seat of government. I would are also made to shield themselves from the exe- suggest, especially in the Post-Office department, cration excited by their own odious treatment of that an assistant be provided in the States beour officers and soldiers now captive in their yond the Mississippi, with authority in the head hands, by misstatements, such as that the pris- of that department to vest in his assistant all oners held by us are deprived of food. To this such powers now exercised by the Postmasterlast accusation the conclusive answer has been General as may be requisite for provisional conmade that, in accordance with our law and the trol of the funds of the department of these general orders of the department, the rations of States, and their application to the payment of the prisoners are precisely the same, in quantity mail contractors, for superintendence of the local and quality, as those served out to our own gal-post-offices, and the contracts for carrying the lant soldiers in the field, and which have been mail; for the temporary employment of proper found sufficient to support them in their arduous persons to fulfil the duties of postmasters and campaigns, while it is not pretended by the ene- contractors in urgent cases, until appointments my that they treat prisoners by the same gener- can be made, and for other like purposes. Withous rule. By an indulgence, perhaps unprece-out some legislative provision on the subject, dented, we have even allowed the prisoners in there is serious risk of the destruction of the our hands to be supplied by their friends at home mail service by reason of the delays and hardwith comforts not enjoyed by the men who cap- ships suffered by contractors under the present tured them in battle. In contrast to this treat- system, which requires constant reference to ment, the most revolting inhumanity has char- Richmond on their accounts, as well as the reacterized the conduct of the United States to- turns of the local paymasters, before they can ward prisoners held by them. One prominent receive payment for services rendered. Like fact, which admits no denial or palliation, must provision is also necessary in the Treasury desuffice as a test. The officers of our army, na-partment; while, for military affairs, it would tives of Southern and semi-tropical climates, and seem to be sufficient to authorize the President

and Secretary of War to delegate to the commanding general so much of the discretionary power vested in them by law as the exigencies of the service shall require.

THE NAVY.

The report of the Secretary of the Navy gives in detail the operations of that department since January last, embracing information of the disposition and employment of the vessels, officers, and men, and the construction of vessels at Richmond, Wilmington, Charleston, Savannah, Mobile, Selma, and on the rivers Roanoke, Neuse, Pedee, Chattahoochee, and Tombigbee; the accumulation of ship-timber and supplies; and the manufacture of ordnance, ordnance stores, and equipments. The foundries and workshops have been greatly improved, and their capacity to supply all demands for heavy ordnance for coast and harbor defences is only limited by our deficiency in the requisite skilled labor. The want of such labor and of seamen seriously affects the operations of the department.

The skill, courage, and activity of our cruisers at sea cannot be too highly commended. They have inflicted heavy losses on the enemy, without suffering a single disaster, and have seriously damaged the shipping interests of the United States by compelling their foreign commerce to seek the protection of neutral flags.

Your attention is invited to the suggestions of the report on the subject of supplying seamen for the service, and of the provisions of the law in relation to the volunteer navy.

THE POST-OFFICE.

now imposed on him by law. The accounts of the departments of State, of the Treasury, of the Navy, and of Justice, are all supervised by that officer, and more than suffice to occupy his whole time. The necessity for a Third Auditor, to examine and settle the accounts of a department so extensive as that of the Post Office, appears urgent, and his recommendation on that subject meets my concurrence.

CONDUCT OF THE ENEMY.

I cannot close this message without again adverting to the savage ferocity which still marks the conduct of the enemy in the prosecution of the war. After their repulse from the defences before Charleston, they first sought revenge by an abortive attempt to destroy the city with an incendiary composition, thrown by improved artillery from a distance of four miles. Failing in this, they changed their missiles, but fortunately have thus far succeeded only in killing two women in the city. Their commanders, Butler, McNeil, and Turchin, whose horrible barbarities have made their names widely notorious and everywhere execrable, are still honored and cherished by the authorities at Washington. The first-named, after having been withdrawn from the scenes of his cruelties against women and prisoners of war, (in reluctant concession to the demands of outraged humanity in Europe,) has just been put in a new command at Norfolk, where helpless women and children are again placed at his mercy.

Nor has less unrelenting warfare been waged by these pretended friends of human rights and liberties against the unfortunate negroes. WherThe Postmaster-General reports the receipts ever the enemy have been able to gain access, of that department for the fiscal year ending the they have forced into the ranks of their army thirtieth June last, to have been three million every able-bodied man that they could seize, three hundred and thirty-seven thousand eight and have either left the aged, the women, and hundred and fifty-three dollars and one cent, the children to perish by starvation, or have and the expenditures for the same period two gathered them into camps, where they have million six hundred and sixty-two thousand been wasted by a frightful mortality. Without eight hundred and four dollars and sixty-seven clothing or shelter, often without food, incapable, cents. The statement thus exhibits an excess without supervision, of taking the most ordinary of receipts amounting to six hundred and seven- precaution against disease, these helpless dety-five thousand forty-eight dollars and forty-four pendents, accustomed to have their wants supcents, instead of a deficiency of more than a mil- plied by the foresight of their masters, are being lion of dollars, as was the case in the preceding rapidly exterminated wherever brought in confiscal year. It is gratifying to perceive that the tact with the invaders. By the Northern man, department has thus been made self-sustaining, on whose deep-rooted prejudices no kindly rein accordance with sound principle, and with the straining influence is exercised, they are treated express requirements of the Constitution, that with aversion and neglect. There is little hazard its expenses should be paid out of its own reve-in predicting that, in all localities where the ennues after the first March, 1863.

The report gives a full and satisfactory account of the operations of the Post-Office department for the last year, and explains the measures adopted for giving more certainty and regularity to the service in the States beyond the Mississippi, and on which reliance is placed for obviating the difficulties heretofore encountered in that

service.

The settlement of the accounts of the department is greatly delayed by reason of the inability of the First Auditor to perform all the duties

emy have gained a temporary foothold, the negroes, who under our care increased six fold in number since their importation into the colonies of Great Britain, will have been reduced by mortality during the war to not more than one half their previous number.

Information on this subject is derived not only from our own observation and from the reports of the negroes who succeeded in escaping from the enemy, but full confirmation is afforded by statements published in the Northern journals, by humane persons engaged in making appeals

to the charitable for aid in preventing the rav-served right to modify their own government in ages of disease, exposure, and starvation among such manner as would best secure their own the negro women and children who are crowded happiness. But these considerations have been into encampments. powerless to allay the unchristian hate of those The frontier of our country bears witness to who, accustomed to draw large profits from a the alacrity and efficiency with which the gen-union with us, cannot control the rage excited by eral orders of the enemy have been executed in the conviction that they have, by their own folly, the devastation of the farms, the destruction of destroyed the richest source of their prosperity. the agricultural implements, the burning of the They refuse even to listen to proposals for the houses, and the plunder of every thing movable. only peace possible between us-a peace which, Its whole aspect is a comment on the ethics of recognizing the impassable, and which divides us, the general order issued by the United States on may leave the two people separately to recover the twenty-fourth of April, 1863, comprising from the injuries inflicted on both by the cause"instructions for the government of armies of less war now waged against us. Having begun the United States in the field," and of which the the war in direct violation of their Constitution, following is an example: which forbade the attempt to coërce a State, they have been hardened by crime, until they no longer attempt to veil their purpose to destroy the institutions and subvert the sovereignty and independence of these States. We now know that the only hope for peace is in the vigor of our resistance, as the cessation of their hostility is only to be expected from the pressure of their necessities.

"Military necessity admits of all direct destruction of life or limb of armed enemies, and of other persons whose destruction is incidentally unavoidable in the armed contests of the war; it allows of the capturing of every armed enemy, and of every enemy of importance to the hostile government, or of peculiar danger to the captor; it allows of all destruction of property and obstructions of the ways and channels of traffic, travel, or communication, and of all withholding of sustenance or means of life from the enemy; of the appropriation of whatever an enemy's country affords necessary for the subsistence and safety of the army, and of such deception as does not involve the breaking of good faith, either positively pledged regarding agreements entered into during the war, or supposed by the modern law of war to exist. Men who take up arms against one another in public war do not cease on this account to be moral beings, responsible to one another and to God."

The striking contrast to these teachings and practices, presented by our army when invading Pennsylvania, illustrates the moral character of our people. Though their forbearance may have been unmerited and unappreciated by the enemy, it was imposed by their own self-respect, which forbade their degenerating from Christian warriors into plundering ruffians, assailing the property, lives, and honor of helpless non-combatants. If their conduct, when thus contrasted with the inhuman practices of our foe, fail to command the respect and sympathy of civilized nations in our day, it cannot fail to be recognized by their less deceived posterity.

The hope last year entertained of an early termination of the war has not been realized. Could carnage have satisfied the appetite of our enemy for the destruction of human life, or grief have appeased their wanton desire to inflict human suffering, there has been bloodshed enough on both sides, and two lands have been sufficiently darkened by the weeds of mourning to induce a disposition for peace.

If unanimity in a people could dispel delusion, it has been displayed too unmistakably not to have silenced the pretence that the Southern States were merely disturbed by a factious insurrection, and it must long since have been admitted that they were but exercising their re

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NEGRO TROOPS AT FORT WAGNER. REPORT OF MAJOR T. B. BROOKS. HEADQUARTERS DEPARTMENT OF THE SOUTH, ENGINEER'S OFFICE, FOLLY ISLAND, S. C., Dec. 10, 1863. GENERAL: In accordance with your instructions, I have the honor to submit the following statement, relating to the amount and nature of the fatigue-duty performed by the colored troops of this command, as compared with the white, in those portions of our recent operations against the defences of Charleston harbor, which were under my direction, namely, the defensive line across Morris Island, the approaches against Fort Wagner, and part of the breaching batteries against Fort Sumter.

In the engineering operations, thirty-three thousand five hundred days' work, of seven hours each, were expended, of which five thousand five hundred were by engineer troops, and six thousand by infantry; nine thousand five hundred days' work, being more than half of that performed by the infantry, and two fifths of the whole, were by blacks, all being volunteer troops.

The whole of this work was done under a fire of artillery or sharp-shooters, or both, and the greater part of it in the night.