The tax collected from the people has been reduced more than $80,000,000 per annum.  By steadiness in our present course there is no reason why in a few short years the national taxgatherer may not disappear from the door of the citizen almost entirely.  With the revenue stamp dispensed by postmasters in every community, a tax upon liquors of all sorts and tobacco in all its forms, and by a wise adjustment of the tariff, which will put a duty only upon those articles which we could dispense with, known as luxuries, and on those which we use more of than we produce, revenue enough may be raised after a few years of peace and consequent reduction of indebtedness to fulfill all our obligations.  A further reduction of expenses, in addition to a reduction of interest account, may be relied on to make this practicable.  Revenue reform, if it means this, has my hearty support.  If it implies a collection of all the revenue for the support of the Government, for the payment of principal and interest of the public debt, pensions, etc., by directly taxing the people, then I am against revenue reform, and confidently believe the people are with me.  If it means failure to provide the necessary means to defray all the expenses of Government, and thereby repudiation of the public debt and pensions, then I am still more opposed to such kind of revenue reform.  Revenue reform has not been defined by any of its advocates to my knowledge, but seems to be accepted as something which is to supply every man’s wants without any cost or effort on his part.

A true revenue reform can not be made in a day, but must be the work of national legislation and of time.  As soon as the revenue can be dispensed with, all duty should be removed from coffee, tea, and other articles of universal use not produced by ourselves.  The necessities of the country compel us to collect revenue from our imports.  An army of assessors and collectors is not a pleasant sight to the citizen, but that or a tariff for revenue is necessary.  Such a tariff, so far as it acts as an encouragement to home production, affords employment to labor at living wages, in contrast to the pauper labor of the Old World, and also in the development of home resources.

Under the act of Congress of the 15th day of July, 1870, the Army has gradually been reduced, so that on the 1st day of January, 1871, the number of commissioned officers and men will not exceed the number contemplated by that law.

The War Department building is an old structure, not fireproof, and entirely inadequate in dimensions to our present wants.  Many thousands of dollars are now paid annually for rent of private buildings to accommodate the various bureaus of the Department.  I recommend an appropriation for a new War Department building, suited to the present and growing wants of the nation.

The report of the Secretary of War shows a very satisfactory reduction in the expenses of the Army for the last fiscal year.  For details you are referred to his accompanying report.