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compared with a fraudulent currency, and the robberies committed by depreciated paper. Our own history has recorded for our instruction enough, and more than enough, of the demoralizing tendency, the injustice, and the intolerable oppression on the virtuous and well-disposed, of a degraded paper currency authorized by law, or in any way countenanced by Government." It is one of the most successful devices, in times of peace or war, of expansions or revulsions, to accomplish the transfer of all the precious metals from the great mass of the people into the hands of the few, where they are hoarded in secret #places or deposited under bolts and bars, while the people are left to endure all the inconvenience, sacrifice, and demoralization resulting from the use of depreciated and worthless paper.

The Secretary of the Interior, in his report, gives valuable information in reference to the interests confided to the supervision of his department, and reviews the operations of the Land-Office, Pension Office, Patent-Office, and the Indian Bureau.

During the fiscal year ending June 30, 1868, 6,655,700 acres of public land were disposed of. The entire cash receipts of the General Land-Office for the same period were $1,632,745, being greater by $234,883 than the amount realized from the same sources during the previous year. The entries under the homestead law cover 2,328,973 acres, nearly onefourth of which was taken under the act of June 21, 1866, which applies only to the States of Alabama, Mississippi, Louisiana, Arkansas, and Florida.

On the 30th of June, 1868, 169,643 names were borne on the pension-rolls, and during the year ending on that day the total amount paid for pensions, including the expenses of disbursement, was $24,010,982, being $5,391,025 greater than that expended for like purposes during the preceding year.

During the year ending the 30th of September last, the expenses of the Patent-Office exceeded the receipts by $171; and, including reissues and designs, 14.153 patents were issued.

Treaties with various Indian tribes have been concluded, and will be submitted to the Senate for its constitutional action. I cordially sanction the stipulations which provide for reserving lands for the various tribes, where they may be encouraged to abandon their nomadic habits, and engage in agricultural and industrial pursuits. This policy, inaugurated many years since, has met with signal success when ever it has been pursued in good faith and with becoming liberality by the United States. The necessity for extending it as far as practicable in our relations with the aboriginal population is greater now than at any preceding period. Whilst we furnish subsistence and instruction to the Indians, and guarantee the undisturbed enjoyment of their treaty rights, we should habitually insist upon the faithful observance of their agreement to remain within their respective reservations. This is the only mode by which collisions with other tribes and with the whites can be avoided, and the safety of our frontier settlements secured.

The companies constructing the railway from Omaha to Sacramento have been most energetically engaged in prosecuting the work, and it is believed that the line will be completed before the expiration of the next fiscal year. The six per cent. bonds issued to these companies amounted, on the 5th instant, to $44,337,000, and additional work had been performed to the extent of $3,200,000.

The Secretary of the Interior in August last invited my attention to the report of a Government director of the Union Pacific Railroad Company, who had been specially instructed to examine the location, construction, and equipment of their road. I submitted for the opinion of the Attorney-General certain questions in regard to the authority of the Executive which arose upon this report, and those which had from time to time been presented by the commisioners appointed to inspect each successive section

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of the work. After carefully considering the law of the case, he affirmed the right of the Executive to order, if necessary, a thorough revision of the entire road. Commissioners were thereupon appointed to examine this and other lines, and have recently submitted a statement of their investigations, of which the report of the Secretary of the Interior furnishes specific information.

The report of the Secretary of War contains information of interest and importance respecting the several bureaus of the War Department and the operations of the army. The strength of our military force on the 30th of September last, was 48,000 men, and it is computed that, by the first of January next, this number will be decreased to 43,000. It is the opinion of the Secretary of War that within the next year a considerable diminution of the infantry force may be made without detriment to the interests of the country; and in view of the great expense attending the military peace establishment, and the absolute necessity of retrenchment wherever it can be applied, it is hoped that Congress will sanction tho reduction which his report recommends. While in 1860, 16,300 men cost the nation $16,472,000, the sum of $65,682,000 is estimated as necessary for the support of the army during the fiscal year ending June 30, 1870. The estimates of the War Department for the last two fiscal years were, for 1867, $33,814,461, and for 1868, $25,205,669. The actual expenditures during the same periods were, respectively, $95,224,415 and $123,246,648. The estimate submitted in December last for the fiscal year ending June 30, 1869, was $77,124,707; the expenditures for the first quarter ending the 30th of September last, were $27,219,117, and the Secretary of the Treasury gives $66,000,000 as the amount which will probably be required during the remaining three-quarters, if there should be no reduction of the army-making its aggregate cost for the year considerably in excess of $93,000,000. The difference between the estimates and expenditures for the three fiscal years which have been named is thus shown to be $175,545,343 for this single branch of the public service.

The report of the Secretary of the Navy exhibits the operations of that department and of the navy during the year. A considerable reduction of the force has been effected. There are 42 vessels, carrying 411 guns, in the six squadrons which are established in different parts of the world. Three of these vessels are returning to the United States, and four are used as storeships, leaving the actual cruising force 35 vessels, carrying 356 guns. The total number of vessels in the navy is 206, mounting 1,743 guns. Eightyone vessels of every description are in use, armed with 696 guns. The number of enlisted men in the service, iucluding apprentices, has been reduced to 8,500. An increase of navy-yard facilities is recommended as a measure which will, in the event of war, be promotive of economy and security. A more thorough and systematic survey of the North Pacific Ocean is advised, in view of our recent acquisitions, our expanding commerce, and the increasing intercourse between the Pacific States and Asia. The naval pension fund, which consists of a moiety of the avails of prizes captured during the war, amounts to $14,000,000. Exception is taken to the act of 23d July last, which reduces the interest on the fund loaned to the Government by the Secretary, as trustee, to three per cent., instead of six per cent., which was originally stipulated when the investment was made. amendment of the pension laws is suggested to remedy omissions and defects in existing enactments. The expenditures of the department during the last fiscal year were $20,120,394, and the estimates for the coming year amount to $20,993,414.

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The Postmaster-General's report furnishes a full and clear exhibit of the operations and condition of the postal service. The ordinary postal revenue for the fiscal year ending June 30, 1868, was $16,292,606, and the total expenditures, embracing all the service

for which special appropriations have been made by Congress, amounted to $22,780,592, showing an excess of expenditures of $6,437,991. Deducting from the expenditures the sum of $1,896,525, the amount of appropriations for ocean steamship and other special service, the excess of expenditures was 4,541,466. By using an unexpended balance in the Treasury of $3,800,000, the actual sum for which a special appropriation is required to meet the deficiency is $741,466. The causes which produced this large excess of expenditure over revenue were the restoration of service in the late insurgent States, and the putting into operation of new service established by acts of Congress, which amounted within the last two years and a half to about 48,700 miles-equal to more than one-third of the whole amount of the service at the close of the New postal conventions with Great Britain, North Germany, Belgium, the Netherlands, Switzerland, and Italy, respectively, have been carried into effect. Under their provisions important improvements have resulted in reduced rates of international postage, and enlarged mail facilities with European countries. The cost of the United States transatlantic ocean mail service since January 1, 1868, has been largely lessened under the operation of these new conventions, a reduction of over one-half having been effected under the new arrangements for ocean mail steamship service which went into effect on that date. The attention of Congress is invited to the practical suggestions and recommendations made in his report by the Postmaster-General.

war.

No important question has occurred during the last year in our accustomed cordial and friendly intercourse with Costa Rica, Guatemala, Honduras, San Salvador, France, Austria, Belgium, Switzerland, Portugal, the Netherlands, Denmark, Sweden and Norway, Rome, Greece, Turkey, Persia, Egypt, Liberia, Morocco, Tripoli, Tunis, Muscat, Siam, Borneo, and Madagascar.

Cordial relations have also been maintained with the Argentine and the Oriental Republics. The expressed wish of Congress, that our national good offices might be tendered to those republics, and also to Brazil and Paraguay, for bringing to an end the calamitous war which has so long been raging in the valley of the La Plata, has been assiduously complied with, and kindly acknowledged by all the belligerents. That important negotiation, however, has thus far been without result.

Charles A. Washburn, late United States minister to Paraguay, having resigned, and being desirous to return to the United States, the rear-admiral commanding the South Atlantic' squadron was early directed to send a ship-of-war to Asuncion, the capital of Paraguay, to receive Mr. Washburn and his family, and remove them from a situation which was represented to be endangered by faction and foreign war. The Brazilian commander of the allied invading forces refused permission to the Wasp to pass through the blockading forces, and that vessel returned to its accustomed anchorage. Remonstrance having been made against this refusal, it was promptly overruled, and the Wasp therefore resumed her errand, received Mr. Washburn and his family, and conveyed them to a safe and convenient seaport. In the mean time an excited controversy had arisen between the President of Paraguay and the late United States minister, which, it is understood, grew out of his proceedings in giving asylum in the United States legation to alleged enemies of that republic. The question of the right to give asylum is one always difficult, and often productive of great embarrassment. In States well organized and established, foreign powers refuse either to concede or exercise that right, except as to persons actually belonging to the diplomatic service. On the other hand, all such powers insist upon exercising the right of asylum in States where the law of nations is not fully acknowledged, respected, and obeyed.

The President of Paraguay is understood to have

opposed to Mr. Washburn's proceedings the injuri ous and very improbable charge of personal erplicity in insurrection and treason. The correspondence, however, has not yet reached the United States Mr. Washburn, in connection with this controversy, represents that two United States citizens attached the legation were arbitrarily seized at his side, wi leaving the capital of Paraguay, committed to pris and there subjected to torture for the purpose of pr curing confessions of their own criminality, and testmony to support the President's allegations agar. the United States minister. Mr. McMahon, the ne appointed minister to Paraguay, having reached t La Plata, has been instructed to proceed without de lay to Asuncion, there to investigate the whole s ject. The rear admiral commanding the Un States South Atlantic squadron has been directed: attend the new minister with a proper naval for....? sustain such just demands as the occasion may ne quire, and to vindicate the rights of the United citizens referred to, and of any others who may be eposed to danger in the theatre of war. With t exceptions, friendly relations have been maintain between the United States and Brazil and Paraz Our relations during the past year with B Ecuador, Peru, and Chili, have become espec friendly and cordial. Spain and the Republies Peru, Bolivia, and Ecuador, have expressed ther ingness to accept the mediation of the United Stars for terminating the war upon the South Pacife e Chili has not finally declared upon the question. L the mean time the conflict has practically extat saitself, since no belligerent or hostile movement o been made by either party during the last two pas and there are no indications of a present purp resume hostilities on either side. Great Britan France have cordially seconded our proposition mediation, and I do not forego the hope that it soon be accepted by all the belligerents, and lad a secure establishment of peace and friendly reati is between the Spanish-American Republies cit Pacific and Spain-a result which would be atten with common benefits to the belligerents, and advantage to all commercial nations. I communio for the consideration of Congress, a correspondet, which shows that the Bolivian Republic has es lished the extremely liberal principle of recei into its citizenship any citizen of the United S or of any other of the American Republics, ups L simple condition of voluntary registry.

The correspondence herewith submitted w found painfully replete with accounts of the ruin wretchedness produced by recent earthquakes, ga —paralleled severity, in the Republies of Peru, Edor, and Bolivia. The diplomatic agents and officers of the United States who were present in the countries at the time of those disasters furnis all the relief in their power to the sufferers. were promptly rewarded with grateful and to acknowledgments by the Congress of Per di appeal to the charity of our fellow-citizens has bee answered by much liberality. In this connection submit an appeal which has been made by the Swi Republic, whose government and institutions kindred to our own, in behalf of its inhabitants, wi are suffering extreme destitution, produced by rec devastating inundations.

Our relations with Mexico during the year ha been marked by an increasing growth of mutual fidence. The Mexican Government has nx yet at.. upon the three treaties celebrated here last su for establishing the rights of naturalized ca upon a liberal and just basis, for regulating powers, and for the adjustment of mutual dis All commercial nations, as well as all friends of publican institutions, have occasion to regret th quent local disturbances which occur in some of constituent States of Colombia. Nothing bas curred, however, to affect the harmony and e friendship which have for several years existed.

own.

tween that youthful and vigorous republic and our
Negotiations are pending with a view to the survey
and construction of a ship-canal across the Isthmus
of Darien, under the auspices of the United States. I
hope to be able to submit the results of that negotia-
tion to the Senate during its present session.

The very liberal treaty which was entered into last
year by the United States and Nicaragua has been
ratified by the latter republic.

Costa Rica, with the earnestness of a sincerely friendly neighbor, solicits a reciprocity of trade, which I commend to the consideration of Congress.

The convention created by treaty between the United States and Venezuela, in July, 1865, for the mutual adjustment of claims, has been held, and its decisions have been received at the Department of State. The heretofore recognized Government of the United States of Venezuela has been subverted. provisional government having been instituted under circumstances which promise durability, it has been formally recognized.

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I have been reluctantly obliged to ask explanation and satisfaction for national injuries committed by the President of Hayti. The political and social condition of the Republics of Hayti and St. Domingo is very unsatisfactory and painful. The abolition of slavery, which has been carried into effect throughout the island of St. Domingo and the entire West Indies, except the Spanish islands of Cuba and Porto Rico, has been followed by a profound popular conviction of the rightfulness of republican institutions, and an intense desire to secure them. The attempt, however, to establish republics there encounters many obstacles, most of which may be supposed to result from long-indulged habits of colonial supineness and dependence upon European monarchical powers. While the United States have, on all occasions, professed a decided unwillingness that any part of this continent or of its adjacent islands shall be made a theatre for a new establishment of monarchical power, too little has been done by us, on the other hand, to attach the communities by which we are surrounded to our own country, or to lend even a moral support to the efforts they are so resolutely and so constantly making to secure republican institutions for themselves. It is indeed a question of grave consideration whether our recent and present example is not calculated to check the growth and expansion of free principles, and make those communities distrust, if not dread, a' government which at will consigns to military domination States that are integral parts of our Federal Union, and, while ready to resist any attempts by other nations to extend to this hemisphere the monarchical institutions of Europe, assumes to establish over a large portion of its people a rule more absolute, harsh, and tyrannical than any known to civilized powers.

The acquisition of Alaska was made with a view of extending national jurisdiction and republican principles in the American hemisphere. Believing that a further step could be taken in the same direction, I last year entered into a treaty with the King of Denmark for the purchase of the islands of St. Thomas and St. John, on the best terms then attainable, and with the express consent of the people of those islands. This treaty still remains under consideraA new convention has been tion in the Senate. entered into with Denmark, enlarging the time fixed for final ratification of the original treaty.

Comprehensive national policy would seem to sanction the acquisition and incorporation into our Federal Union of the several adjacent continental and insular communities as speedily as it can be done peacefully, lawfully, and without any violation of national justice, faith, or honor. Foreign possession or control of those communities has hitherto hindered the growth and impaired the influence of the United States. Chronic revolution and anarchy there would Each one of them, when firmly be equally injurious.

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established as an independent republic, or when incorporated into the United States, would be a new source of strength and power. Conforming my administration to these principles, I have on no occasion lent support or toleration to unlawful expeditions set on foot upon the plea of republican propagandism, or of national extension or aggrandizement. The necessity, however, of repressing such unlawful movements clearly indicates the duty which rests upon us of adapting our legislative action to the new circumstances of a decline of European monarchical power and influence, and the increase of American republican ideas, interests, and sympathies.

It cannot be long before it will become necessary for this Government to lend some effective aid to the solution of the political and social problems which are continually kept before the world by the two republics of the island of St. Domingo, and which are now disclosing themselves more distinctly than heretofore in the island of Cuba. The subject is commended to your consideration with all the more earnestness because I am satisfied that the time has arrived when even so direct a proceeding as a proposition for an annexation of the two republics of the island of St. Domingo would not only receive the consent of the people interested, but would also give satisfaction to all other foreign nations.

I am aware that upon the question of further extending our possessions it is apprehended by some that our political system cannot successfully be applied to an area more extended than our continent; but the conviction is rapidly gaining ground in the American mind, that with the increased facilities for intercommunication between all portions of the earth, the principles of free government, as embraced in our Constitution, if faithfully maintained and carried out, would prove of sufficient strength and breadth to comprehend within their sphere and influence the civilized nations of the world.

The attention of the Senate and of Congress is again respectfully invited to the treaty of the establishment of commercial reciprocity with the Hawaiian Kingdom, entered into last year, and already ratified States toward these islands is not very different from by that government. The attitude of the United that in which they stand toward the West Indies. It is known and felt by the Hawaiian Government and people that their government and institutions are fecble and precarious; that the United States, being so near a neighbor, would be unwilling to see the islands pass under foreign control. Their prosperity is continually disturbed by expectations and alarms of unfriendly political proceedings, as well from the United States as from other foreign powers. A reciprocity treaty, while it could not materially diminish the revenues of the United States, would be a guarantee of the good-will and forbearance of all nations until the people of the islands shall of themselves, at no distant day, voluntarily apply for admission into the Union.

The Emperor of Russia has acceded to the treaty negotiated here in January last, for the security of commerce. I have invited his attention to the imtrade-marks in the interest of manufacturers and portance of establishing, now while it seems easy and practicable, a fair and equal regulation of the vast fisheries belonging to the two nations in the waters of the North Pacific Ocean.

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The two treaties between the United States and Italy for the regulation of consular powers and the extradition of criminals, negotiated and ratified here during the last session of Congress, have been accepted and confirmed by the Italian Government. with Belgium will be submitted to the Senate. The liberal consular convention which has been negotiated tween the United States and North Germany and very important treaties which were negotiated beBavaria, for the regulation of the rights of naturalized citizens, have been duly ratified and exchanged, and similar treaties have been entered into with the

Kingdoms of Belgium and Wurtemberg, and with the Grand Duchies of Baden and Hesse-Darmstadt. I hope soon to be able to submit equally satisfactory conventions of the same character now in the course of negotiation with the respective Governments of Spain, Italy, and the Ottoman Empire.

Examination of claims against the United States by the Hudson's Bay Company and the Puget's Sound Agricultural Company, on account of certain possessory rights in the State of Oregon and Territory of Washington, alleged by those companies in virtue of provisions of the treaty between the United States and Great Britain, of June 15, 1846, has been diligently prosecuted, under the direction of the joint international commission to which they were submitted for adjudication by treaty between the two governments, of July 1, 1863, and will, it is expected, be concluded at an early day.

No practical regulation concerning colonial trade and the fisheries can be accomplished by treaty between the United States and Great Britain until Congress shall have expressed their judgment concerning the principles involved. Three other questions, however, between the United States and Great Britain remain open for adjustment. These are, the mutual rights of naturalized citizens, the boundary question involving the title to the island of San Juan, on the Pacific coast-and mutual claims arising since the year 1853, of the citizens and subjects of the two countries for injuries and depredations committed under the authority of their respective governments. Negotiations upon these subjects are pending, and I am not without hope of being able to lay before the Senate, for its consideration during the present session, protocols calculated to bring to an end these justly exciting and long-existing controversies.

We are not advised of the action of the Chinese Government upon the liberal and auspicious treaty which was recently celebrated with its plenipotentiaries at this capital.

Japan remains a theatre of civil war, marked by religious incidents and political severities peculiar to that long-isolated empire. The Executive has hitherto maintained strict neutrality among the belligerents, and acknowledges with pleasure that it has been frankly and fully sustained in that course by the enlightened concurrence and cooperation of the other treaty powers, namely: Great Britain, France, the Netherlands, North Germany, and Italy.

Spain having recently undergone a revolution marked by extraordinary unanimity and preservation of order, the provisional government established at Madrid has been recognized, and the friendly intercourse which has so long happily existed between the two countries remains unchanged.

I renew the recommendation contained in my communication to Congress, dated the 18th of July last a copy of which accompanies this message-that the judgment of the people should be taken on the propriety of so amending the Federal Constitution that it shall provide

1. For an election of President and Vice-President by a direct vote of the people, instead of through the agency of electors, and making them ineligible for reelection to a second term.

2. For a distinct designation of the person who shall discharge the duties of President, in the event of a vacancy in that office by death, resignation, or removal of both the President and Vice-President.

3. For the election of Senators of the United States directly by the people of the several States, instead of by the Legislatures; and

4. For the limitation to a period of years of the terms of Federal judges.

Profoundly impressed with the propriety of making these important modifications in the Constitution, respectfully submit them for the early and mature consideration of Congress. We should, as far as possible, remove all pretext for violations of the organic law, by remedying such imperfections as time and

experience may develop, ever remembering that “the Constitution which at any time exists, until changed by an explicit and authentic act of the whole people, is sacredly obligatory upon all."

In the performance of a duty imposed upon me by the Constitution, I have thus communicated to Ccc gress information of the state of the Union, and reeommended for their consideration such measures as have seemed to me necessary and expedient. If carried into effect, they will hasten the accomplish ment of the great and beneficent purposes for whe the Constitution was ordained, and which it comprehensively states were, "to form a more perfect Unlo establish justice, insure domestic tranquillity, provide for the common defence, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity." In Congress are vested all legis tive powers, and upon them devolves the respert bility, as well for framing unwise and excessive laws, as for neglecting to devise and adopt measures abeolutely demanded by the wants of the country. Lt us earnestly hope that before the expiration of sur respective terms of service, now rapidly drawing w a close, an all-wise Providence will so guide our cosels as to strengthen and preserve the Federal Union. inspire reverence for the Constitution, restore pres perity and happiness to our whole people, and pr mote" on earth peace, good-will toward men."

ANDREW JOHNSON. WASHINGTON, December 9, 1868.

Correspondence between President JOHNSON and General U. S. GRANT, relative to the office of Secretary of War, etc.:

WAR DEPARTMENT, WASHINGTON CITY, February 4, 1868. SIR: In answer to the resolution of the House of Representatives of the 3d instant, I transmit here with copies furnished me by General Grant of cor spondence between him and the President relating the Secretary of War, and which he reports to be si the correspondence he has had with the President on the subject.

I have had no correspondence with the Preside since the 12th of August last. After the action of Senate on his alleged reason for my suspension f the office of Secretary of War, I resumed the date of that office as required by the act of Congress, Es have continued to discharge them without any sonal or written communication with the Preside No orders have been issued from this Departme the name of the President with my knowledge, al

have received no orders from him."

The correspondence sent herewith embraces all th correspondence known to me on the subject refer to in the resolution of the House of Representatives I have the honor to be, sir, with great respect, obedient servant,

EDWIN M. STANTON, Secretary of Wa Hon. SCHUYLER COLFAX,

Speaker of the House of Representatives. HEADQUARTERS ARMY OF THE UNITED STATES,! WASHINGTON, January 24, 1868, 1 SIR: I have the honor very respectfully to reque to have in writing the order which the Presidente me verbally on Sunday, the 19th instant, to disreg the orders of Hon. E. M. Stanton as Secretary of W until I knew from the President himself that th were his orders.

I have the honor to be, very respectfully, obedient servant, U. S. GRANT, Gener His Excellency A. JOHNSON,

President of the United States.

As requested in this communication, General Grant is instructed in writing not to obey any order from the War Department assumed to be issued by

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HEADQUARTERS ARMY OF THE UNITED STATES,

WASHINGTON, D. C., January 28, 1868.

SIR: On the 24th instant I requested you to give me in writing the instructions which you had previously given me verbally, not to obey any order from Hon. E. M. Stanton, Secretary of War, unless I knew that it came from yourself. To this written request I received a message that has left doubt in my mind of your intentions. To prevent any possible misunderstanding, therefore, I renew the request that you will give me written instructions, and till they are received will suspend action on your verbal ones.

I am compelled to ask these instructions in writing in consequence of the many and gross misrepresentations, affecting my personal honor, circulated through the press for the last fortnight, purporting to come from the President, of conversations which occurred either with the President privately in his office or in Cabinet meeting. What is written admits of no misunderstanding.

In view of the misrepresentations referred to, it will be well to state the facts in the case.

Some time after I assumed the duties of Secretary of War ad interim the President asked me my views as to the course Mr. Stanton would have to pursue, in case the Senate should not concur in his suspension, to obtain possession of his office. My reply was, in substance, that Mr. Stanton would have to appeal to the courts to reinstate him, illustrating my position by citing the ground I had taken in the case of the Baltimore police commissioners.

In that case I did not doubt the technical right of Governor Swann to remove the old commissioners and to appoint their successors. As the old commissioners refused to give up, however, I contended that no resource was left but to appeal to the courts. Finding that the President was desirous of keeping Mr. Stanton out of office, whether sustained in the suspension or not, I stated that I had not looked particularly into the "Tenure-of-Office Bill," but that what I had stated was a general principle, and if I should change my mind in this particular case I

would inform him of the fact.

Subsequently, on reading the "Tenure-of-Office Bill" closely, I found that I could not, without violation of the law, refuse to vacate the office of Secretary of War the moment Mr. Stanton was reinstated by the Senate, even though the President should order me to retain it, which he never did.

Taking this view of the subject, and learning on Saturday, the 11th instant, that the Senate had taken up the subject of Mr. Stanton's suspension, after some conversation with Lieutenant-General Sherman and some members of my staff, in which I stated that the law left me no discretion as to my action should Mr. Stanton he reinstated, and that I intended to inform the President, I went to the President for the sole purpose of making this decision known, and did so make it known. In doing this I fulfilled the promise made in our last preceding conversation on the subject.

The President, however, instead of accepting my view of the requirements of the "Tenure-of-Office Bill," contended that he had suspended Mr. Stanton under the authority given by the Constitution, and that the same authority did not preclude him from reporting, as an act of courtesy, his reasons for the suspension to the Senate; that, having appointed me under the authority given by the Constitution, and not under any act of Congress, I could not be governed by the act. I stated that the law was binding on me, constitutional or not, until set aside by the proper tribunal,

An hour or more was consumed, each reiterating

his views on this subject, until, getting late, the President said he would see me again.

I did not agree to call again on Monday nor at any other definite time, nor was sent for by the President until the following Tuesday.

From the 11th to the Cabinet meeting on the 14th instant, a doubt never entered my mind about the President's fully understanding my position, namely, that, if the Senate refused to concur in the suspension of Mr. Stanton, my powers as Secretary of War ad interim would cease, and Mr. Stanton's right to resume at once the functions of his office would under the law be indisputable; and I acted accordingly. With Mr. Stanton I had no communication, direct or indirect, on the subject of his reinstatement, during his suspension. I knew it had been recommended to the President to send in the name of Governor Cox, of Ohio, for Secretary of War, and thus save all embarrassmenttain favorably-General Sherman seeing the Presia proposition that I sincerely hoped he would enterdent, at my particular request, to urge this, on the

13th instant.

On Tuesday (the day Mr. Stanton reentered the office of the Secretary of War) General Coinstock, who had carried my official letter announcing that with Mr. Stanton's reinstatement by the Senate I had ceased to be Secretary of War ad interim, and who saw the President open and read the communication, brought back to me from the President a message that he wanted to see me that day at the Cabinet meeting, after I had made known the fact that I was no longer Secretary of War ad interim.

At this meeting, after opening it as though I were fication already given him that I was no longer Secrea member of the Cabinet, when reminded of the notitary of War ad interim, the President gave a version of the conversations alluded to already. In this statement it was asserted that in both conversations I had agreed to hold on to the office of Secretary of War until displaced by the courts, or resign, so as to place the President where he would have been had I never accepted the office. After hearing the President through, I stated our conversations substantially as given in this letter. I will add that my conversation nent here, and is therefore left out. before the Cabinet embraced other matter not perti

I in nowise admitted the correctness of the Presi

dent's statement of our conversations, though, to soften the evident contradiction my statement gave, I said (alluding to our first conversation on the subject) the President might have understood me the if I did not resist the reinstatement. I made no such way he said, namely, that I had promised to resign I have the honor to be, etc., etc., promise. U. S. GRANT, General. President of the United States.

His Excellency A. JOHNSON,

HEADQUARTERS ARMY OF THE UNITED STATES,

WASHINGTON, January 30, 1868.

SIR: I have the honor to acknowledge the return of my note of the 24th instant, with your indorsement thereon that I am not to obey any order from the War Department, assumed to be issued by the direction of the President, unless such order is known by me to have been authorized by the Executive; and in reply thereto to say that I am informed by the Secretary of War that he has not received from the Executive any order or instructions limiting or impairing his authority to issue orders to the Army as has heretofore been his practice under the law and the customs of the Department. While this authority to the War Department is not countermanded, it will be satisfactory evidence to me that any orders issued from the War Department by direction of the President are authorized by the Executive. I have the honor to be, very respectfully, your obedient servant, U. S. GRANT, General. His Excellency A. JOHNSON, President of the United States.

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