By the act of the 13th of May last the President was authorized to accept the services of volunteers “in companies, battalions, squadrons, and regiments,” but no provision was made for filling up vacancies which might occur by death or discharges from the service on account of sickness or other casualties.  In consequence of this omission many of the corps now in service have been much reduced in numbers.  Nor was any provision made for filling vacancies of regimental or company officers who might die or resign.  Information has been received at the War Department of the resignation of more than 100 of these officers.  They were appointed by the State authorities, and no information has been received except in a few instances that their places have been filled; and the efficiency of the service has been impaired from this cause.  To remedy these defects, I recommend that authority be given to accept the services of individual volunteers to fill up the places of such as may die or become unfit for the service and be discharged, and that provision be also made for filling the places of regimental and company officers who may die or resign.  By such provisions the volunteer corps may be constantly kept full or may approximate the maximum number authorized and called into service in the first instance.

While it is deemed to be our true policy to prosecute the war in the manner indicated, and thus make the enemy feel its pressure and its evils, I shall be at all times ready, with the authority conferred on me by the Constitution and with all the means which may be placed at my command by Congress, to conclude a just and honorable peace.

Of equal importance with an energetic and vigorous prosecution of the war are the means required to defray its expenses and to uphold and maintain the public credit.

In my annual message of the 8th December last I submitted for the consideration of Congress the propriety of imposing, as a war measure, revenue duties on some of the articles now embraced in the free list.  The principal articles now exempt from duty from which any considerable revenue could be derived are tea and coffee.  A moderate revenue duty on these articles it is estimated would produce annually an amount exceeding $2,500,000.  Though in a period of peace, when ample means could be derived from duties on other articles for the support of the Government, it may have been deemed proper not to resort to a duty on these articles, yet when the country is engaged in a foreign war and all our resources are demanded to meet the unavoidable increased expenditure in maintaining our armies in the field no sound reason is perceived why we should not avail ourselves of the revenues which may be derived from this source.  The objections which have heretofore existed to the imposition of these duties were applicable to a state of peace, when they were not needed.  We are now, however, engaged in a foreign war.  We need money to prosecute