The first year in our history has been the most eventful in the annals of this continent. A new government has been established, and its machinery put in operation, over an area exceeding seven hundred thousand square miles. The great principles upon which we have been willing to hazard every thing that is dear to man have made conquests for us which could never have been achieved by the sword. Our Confederacy has grown from six to thirteen States; and Maryland, already united to us by hallowed memories and material interests, will, I believe, when able to speak with unstifled voice, connect her destiny with the South. Our people have rallied, with unexampled unanimity, to the support of the great principles of constitutional government, with firm resolve to perpetuate by arms the rights which they could not peacefully secure. A million of men, it is estimated, are now standing in hostile array, and waging war along a frontier of thousands of miles; battles have been fought, sieges have been conducted, and, although the contest is not ended, and the tide for the moment is against us, the final result in our favor is not doubtful.

The period is near at hand when our foes must sink under the immense load of debt which they have incurred—a debt which, in their efforts to subjugate us, has already attained such fearful dimensions as will subject them to burdens which must continue to oppress them for generations to come.

We, too, have had our trials and difficulties. That we are to escape them in the future is not to be hoped. It was to be expected, when we entered upon this war, that it would expose our people to sacrifices, and cost them much both of money and blood. But we knew the value of the object for which we struggled, and understood the nature of the war in which we were engaged. Nothing could be so bad as failure, and any sacrifice would be cheap as the price of success in such a contest.

But the picture has its lights as well as its shadows. This great strife has awakened in the people the highest emotions and qualities of the human soul. It is cultivating feelings of patriotism, virtue, and courage. Instances of self-sacrifice and of generous devotion to the noble cause for which we are contending are rife throughout the land. Never has a people evinced a more determined spirit than that now animating men, women, and children in every part of our country. Upon the first call, the men fly to arms; and wives and mothers send their husbands and sons to battle without a murmur of regret.

It was, perhaps, in the ordination of Providence that we were to be taught the value of our liberties by the price which we pay for them.

The recollections of this great contest, with all its common traditions of glory, of sacrifices, and of blood, will be the bond of harmony and enduring affection amongst the people, producing unity in policy, fraternity in sentiment, and joint effort in war.

Nor have the material sacrifices of the past year been made without some corresponding benefits. If the acquiescence of foreign nations in a pretended blockade has deprived us of our commerce with them, it is fast making us a self-supporting and an independent people. The blockade, if effectual and permanent, could only serve to divert our industry from the production of articles for export, and employ it in supplying commodities for domestic use.

It is a satisfaction that we have maintained the war by our unaided exertions. We have neither asked nor received assistance from any quarter. Yet the interest involved is not wholly our own. The world at large is concerned in opening our markets to its commerce. When the independence of the Confederate States is recognized by the nations of the earth, and we are free to follow our interests and inclinations by cultivating foreign trade, the Southern States will offer to manufacturing nations the most favorable markets which ever invited their commerce. Cotton, sugar, rice, tobacco, provisions, timber, and naval stores will furnish attractive exchanges. Nor would the constancy of these supplies be likely to be disturbed by war. Our confederate strength will be too great to attempt aggression; and never was there a people whose interests and principles committed them so fully to a peaceful policy as those of the Confederate States. By the character of their productions, they are too deeply interested in foreign commerce wantonly to disturb it. War of conquest they can not wage, because the Constitution of their Confederacy admits of no coerced association. Civil war there can not be between States held together by their volition only. This rule of voluntary association, which can not fail to be conservative, by securing just and impartial government at home, does not diminish the security of the obligations by which the Confederate States may be bound to foreign nations. In proof of this, it is to be remembered that, at the first moment of asserting their right of secession, these States proposed a settlement on the basis of a common liability for the obligations of the General Government.

Fellow-citizens, after the struggles of ages had consecrated the right of the Englishman to constitutional representative government, our colonial ancestors were forced to vindicate that birthright by an appeal to arms. Success crowned their efforts, and they provided for their posterity a peaceful remedy against future aggression.

The tyranny of an unbridled majority, the most odious and least responsible form of despotism, has denied us both the right and the remedy. Therefore we are in arms to renew such sacrifices as our fathers made to the holy cause of constitutional liberty. At the darkest hour of our struggle, the provisional gives place to the permanent government. After a series of successes and victories, which covered our arms with glory, we have recently met with serious disasters. But, in the heart of a people resolved to be free, these disasters tend but to stimulate to increased resistance.