IdeemitofimportancethattheloyalregionsofeastTennesseeandwesternNorthCarolinashouldbeconnectedwithKentuckyandotherfaithfulpartsoftheUnionbyrail—road。Ithereforerecommend，asamilitarymeasure，thatCongressprovidefortheconstructionofsuchrail—roadasspeedilyaspossible。Kentuckywillnodoubtco—operate，andthroughherLegislaturemakethemostjudiciousselectionofaline。Thenorthernterminusmustconnectwithsomeexistingrailroad，andwhethertherouteshallbefromLexingtonorNicholasvilletotheCumberlandGap，orfromLebanontotheTennesseeline，inthedirectionofKnoxville，oronsomestilldifferentline，caneasilybedetermined。KentuckyandtheGeneralGovernmentco—operating，theworkcanbecompletedinaveryshorttime，andwhendoneitwillbenotonlyofvastpresentusefulnessbutalsoavaluablepermanentimprovement，worthitscostinallthefuture。
Sometreaties，designedchieflyfortheinterestsofcommerce，andhavingnogravepoliticalimportance，havebeennegotiated，andwillbesubmittedtotheSenatefortheirconsideration。
Althoughwehavefailedtoinducesomeofthecommercialpowerstoadoptadesirablemeliorationoftherigorofmaritimewar，wehaveremovedallobstructionsfromthewayofthishumanereformexceptsuchasaremerelyoftemporaryandaccidentaloccurrence。
IinviteyourattentiontothecorrespondencebetweenherBritannicMajesty’sministeraccreditedtothisgovernmentandtheSecretaryofStaterelativetothedetentionoftheBritishshipPerthshireinJunelastbytheUnitedStatessteamerMassachusettsforasupposedbreachoftheblockade。Asthisdetentionwasoccasionedbyanobviousmisapprehensionofthefacts，andasjusticerequiresthatweshouldcommitnobelligerentactnotfoundedinstrictrightassanctionedbypubliclaw，Irecommendthatanappropriationbemadetosatisfythereasonabledemandoftheownersofthevesselforherdetention。
IrepeattherecommendationofmypredecessorinhisannualmessagetoCongressinDecemberlastinregardtothedispositionofthesurpluswhichwillprobablyremainaftersatisfyingtheclaimsofAmericancitizensagainstChina，pursuanttotheawardsofthecommissionersundertheactofthe3dofMarch，1859。If，however，itshouldnotbedeemedadvisabletocarrythatrecommendationintoeffect，Iwouldsuggestthatauthoritybegivenforinvestingtheprincipal，ortheproceedsofthesurplusreferredto，ingoodsecurities，withaviewtothesatisfactionofsuchotherjustclaimsofourcitizensagainstChinaasarenotunlikelytoarisehereafterinthecourseofourextensivetradewiththatempire。