character have been perpetrated upon her people; some of her most eminent citizens have been seized and borne away to languish in foreign prisons, without knowing who were their accusers or the specific charges made against them, while others have been forced to abandon their homes, families, and property, and seek a refuge in distant lands.
Finding that the Confederate States were about to be invaded through Kentucky, and that her people, after being deceived into a mistaken security, were unarmed and in danger of being subjugated by the Federal forces, our armies were marched into that State to repel the enemy and prevent their occupation of certain strategic points which would have given them great advantages in the contest-a step which was justified not only by the necessities of self-defense on the part of the Confederate States, but also by a desire to aid the on the part of Kentucky. It was never intended by the Confederate Government to conquer or coerce the people of that State; but, on the contrary, it was declared by our generals that they would withdraw their troops if the Federal Government would do likewise. Proclamation was also made of the desire to respect the neutrality of Kentucky and the intention to abide by the wishes of her people as soon as they were free to express their opinions. These declarations were approved by me, and I should regard it as one of the best effects of the march of our troops into Kentucky if it should end in giving to her people liberty of choice and a free opportunity to decide their own destiny according to their own will.
The Army has been chiefly instrumental in prosecuting the great contest in which we are engaged, but the Navy has also been effective in full proportion to its means. The naval officers, deprived to a great extent of an opportunity to make their professional skill available at sea, have served with commendable zeal and gallantry on shore and upon inland waters, further detail of which will be found in the reports of the Secretaries of the Navy and War. In the transportation of the mails many difficulties have arisen, which will be found fully developed in the report of the Postmaster-General. The absorption of the ordinary means of transportation for the movements of troops and military supplies; the insufficiency of the rolling-stock of railroads for the accumulation of business resulting both from military operations and the obstruction of water communication by the presence of the enemy's fleet; the failure, and even refusal, of contractors to comply with the terms of their agreements; the difficulties inherent in inaugurating so vast and complicated a system as that which requires postal facilities for every town and village in a territory so extended as ours, have all combined to impede the best-directed efforts of the Postmaster-General, whose zeal, industry, and ability have been taxed to the utmost extent. Some of these difficulties can only be overcome by time and an improved condition of the country upon the restoration of peace, but others may be remedied by legislation, and your attention is invited to the recommendations contained in the report of the head of that Department.
The condition of the Treasury will doubtless be a subject of anxious inquiry on your part. I am happy to say that the financial system already adopted has worked well so far, and premises good results for the future. To the extent that Treasury notes may be issued the Government is enabled to borrow money without interest, and thus facilitate the conduct of the war. This extent is measured by the portion of the field of circulation which these notes can be made to