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President's Message. la iMMMmUint tr cnl my fourth anntliil m e, It In witli thankfulness lu the Wver mt mil rood lbs as nntion we have Been tfcsaed fur the test ywr with pram; at home mad, in jp-ihthI prosperity Hist bus been Vouchsafed to but few people. Willi the ex emption nt (tie recent devasmtrng; fire wliicii we from cnrtli willi bsealb, ns it were, . SMMIonsof accumulated wealth in I lie city f Boston, there lisve been no ovtrsliiitlonlua calamities within the yesr to record. It Is rtliyiiiK Hi ilotB how liho tin Ir fcllow-ci.i-cros of the city of Chkt'uucr imitnr cir- t camstsnccs. yesr curlier,, the citizens of 11ns two arc rallying mrtfrr tiieip misfortunes, rikI the prosoen ta rtlnl their encriry mid persevcr ae Will overcome nil obstacles, ft ml lmw the sMe prosnerlty soon tbnt tbry would have' bad, bad no disaster bcliillcn lliem. Otherwise w bare been five In mi pestilence, wiir mul Calainlilea, which mien nvertiiku navtons, mid a far M human Judgment cmi penetrate I lie ftiturr, do cause sictns to exist to 'lircatcn our THE GENEVA ARBITRATION. When ConvnrM adjourned In June Lis, a question had been raised by Ureal ilriihiiiritiHl was then nciidiu, which lor 11 time, seriously Imperilled the scltlemcul of friendly urbiir.i lion Ot the differences existing between this Umwrnmcol and that nf 11 r liriitunic M.1J1 s- , jr, aawlby the trenly ol Wnshiiutun hud been referred l Ibo Tribunal ol' Ai libralion, which had niel at Geneva, in S iizcr!;i;il.. TIim ar bitrators, however, disposed of Hie question which had jeopnrdiZ 'd thu whole ot" the Mealy, nd threatened to Involve lh two tuition in the most unhappy relations tnwitr.ls eacli oilier, in manner entirely siili-Iiiciory to this fjov rrnmtint, and-ip accordance with thu views nd the policy which it liiul maintained. The tribunnl wluali had eouvi ncil in Geneva in December, ooncluue J lis laborious session 011 the 11th day ol' 3. plumber last, 011 which day, having availed ilscif of 1 lie discretionary pow er given to it liy the trealy to award it s.un in cross, i: made us decision, wncreby it uwnivled the sum 01 l5,5i)0,0b0 in jfold, as Hie indem nity to be paid liy Ureal Br. lain to the United Irta'.es, lor I lie suiisluclioii 01 all I lie eld. in ro JVrrcd to its consideration. Tne ileeision Happily dispose of a lon standing ilHt'-rciice betewen the two govern men is, and in coiim c . tion with another award made liy the Ocrman Emperor under a relCKcuc: to him by (he Maine treaty, leaves these two trim miliums v. iiliout Shadow upon thj friendly relalions wliieh it Is my sincere hope may lorevi r remain pjally unclouded. The report of the nijcni 1 the LuiteJ hums upiioiuied lo-attend ihe Geneva Tiibuunl, uctouipanied by the prolo Cola of the proceedings 01 Uie ArtiitritUirs, is transmilled herewiili. I have caused to lie Communicated to the heads of the llirec friend ly powers who complied with the joint re quest made to them und r the treaty, the thanks of Ibis Government for the np'poiiil tneut of Arbitrators made, by lliem respect ively, and also my thanks to thu einiiieiil personages named liy them, and my apprecia tion of tint dignity, patience, Impartiality and great ability with which they discharged their arduous und high functions. lb r Majesty's ' government has uoiiumiiilca'.i d to inn. Us ap- prestation by Her Aliilesiy of Ihe abilily and Indelaiiuhlu induslr-y displayed by Mr. Adams, the arbitrator Humid on the purl of this Gov e rnineul, during the proirac'.ed iininirii s ami llisciiHsiiins of tun 'I'liouiial, 1 cordially unite Willi ller ilnjesiy in i;di appreciation. It is due to the neiil ot I lie I'nited btates bi.lore the Tlibunal to record my lii'h appreciation ol the uiiiiked abilily, unwearied paiieuee and the prudence and iliscrelinu witli which lie bus conducted the very responsible and delicate dutiis committed to him, ns it is arlso due to the learned and emiin nl counsel who attended the tribunal on thu part ol this Government, to express my sense 01 the talent nd Wis loin which tney biouj;lil to bear in the argument of the result m happily reached, ll will be the jirovince of Congress tu provide . fur the distribution anions those who may be a titled. 10 it, of lluk reptctiye shares ol the money to lie pit id. Although iho sum awnided Is uot payable nntll ayeHr liimi the date ol thu uwmd, it is ueeiutu advisable that no time b his1. In muk Inf proper cxniuiuution of the several cases in which indemnification may lie due. 1 eon- . aequenily rceoiiinn I'd the, creatl 111 of a board of commissioners for the purpose, liy the ' thlrty-lnurth articie 01" lliu trenly of Wii.-liiu- . Ion, the respective claims of the (Jailed Stan nd Great B.-iiian, In their ConHlniction of the treaty of the Kith of June, I6li. delinin;; the bouodry linu between thcii rispbl'Mvu terri tories, were submitted lo tlio iiridiralioii mid the award of His ilnji sty, the Ktupcrur ol Uer ninny, to decide wiucti of those cluiius 1 niosuiu accordunce with the In.u l.iterpteii) lion of Uut Trealy of l4(l His Majesty, the JSinperor of Ueriiiany, hi.yiiiK lieeu pleural to undertake the iirlii.ijoi.iu, has Hie ciiruesi thanks of this Kovertiiiient und of the people oflheUuilid biMl.-s, lor the l.ilior, iains and are which he iias d. tou-d lo the eonsideiaiioii f this hmf peniliux ddl'Lieiici!. 1 hnye canseil n expression ol my thanks to be toiiiiiitini catcd 10 his Majesty. Mr. llancrofl, the repre sentative of this K"Vcriinicul 11 1 Uerlin, con ducted the case mho pn-pured thu sinti iueul 011 the pari of the United h.alia wilii llm uliiliiy ttlat his iast service Jusiitled iho pitblli: in e )M'Cllf; at his liands. Ah a member of the Cabiuet nt the dalu of the Treat v which hns given rite to llm discussion between tiie two Kovermneiits, us the MiuUli r In limit lliliiun wheu the Construction now iirouoiinccd. (in liiuuded was first advanced, nudt us thu uncut and representative of thu uoveiniui'iit to pre cut the case and to receive thu award, lie ha been cssociatcd Willi 11m ( 1. nliiui in all its phases, and iu every M Ku has inanib sled 11 kaliiuiic .yul and (iirnehtueHs in Hie iiuinle Maneol the claims ol t,.u United Sun p. lie i er.tiilvd to much credit lor thu i,u.:ess wuieh has ai tended I lie tmhniisHioii. Albra patient ilivcslljiuliuu ol the case, and ol the tateineut l l uitb parly, His M ijcsiy, the Km- rraor, on IheSlst day ol October liibl, slu'lled is award lu ttiiiine, ilccieeiiijj that the claim of the Koverniiienl ol Hie United Slates that UlO bmindiy linn lulwein the T'eirilol ics ol .Ucr IJrllluiiic Maj sly and llu Uniud Slates should he drawn lnioiih thu Jl.iro Ulinnucl, tr most In accord; 11 e wiih the true iulerpreta linu of the Trealy concluded 011 t!iu l.lili of Juue, lt0, bt lween Din ski iiis of Her Ulilun Jc Majesty and of the United Stales. Copies of li. e cum presented 011 behalf of nch Govcrnn cut, and of the siaieim uis lu reply of each, and translation of the award ar triasiuiiu (1 ikiiwiui. '1 his awnrd con Urms the L imed Siatis in tin ir claim to the important archipelago of isluuds lyiny betneiu the Conlhieiil uud Vancouvi r libiiid, w hich '.r tweniy-six years, ver since ihc ratilleniioii of the Irraiy, Grtat Hi limn let route sled, uud leaves us for me In s( tune in liu history of the ..fulled Stales as a imtlon without a (picsimu ol disputed boundary Ix t wecu our territory 11 m I the posieksloiii 01 (in nt llriiain 011 this conii UenL It is my graleliil duly to urkliou ledge M prompt sponliuieotik Hi-lion ol ilerMnji s ty'i Govsruuiiiit lu jjivlii illect lo thu auiiril im anlicipaiwiu ol any request Irom this Uov. t-ruimul, uiui Uhiro thu feeeptioii in the Vulted Stan s of fUe sward slijued by Ihc I'm pi ror, Uer Majesty lea" giv, insiruiti 'us for the siNmvHtol her troops wlricli had Ue.i atft thioed lliere, a(t lor tin-umuiIou ol all exer cise or claim ol Juiiadiellou, so s lo leave Iho United Blutcs iu ikclusiva piMwasiou of Hie leljr disputed territory. I sm graiitkd lo be able to announce that the orders lor the remo val of the troops have been executed, and the Military jolol occupation of Msn J una hss ccasnd. The Wands are now in lh exclusive oaaalon of tbe United tilales., Jl now Lu mtaw uecetssary lo complete Ihe'sui vey und ceisrmiasiloii of the poriiou of Hie b-.uudary nnn Ibroiiea ike llsro chain I, uimu which the couuniMsiou which determined the uiuiniiiff part ot Uut WmiWcfs uuuble to nyrcf. I -re-eoiiimend (he sppointim 11 1 of a Coiumiiou to act Jointly with one hleh msy lie iiaiued by lier Msjesty lor that puroi.se.. txperlelic! ol WUa diOiciiliies alleuunia Um dukUmUou ol oar diniiti 1 Hits of boundary, alter tbu occu pation of the territory and Its Itteii.ein by those owlnjt ulieiiiunce 10 Ihu rvspeclive gov Hiuienls, points to the Importance ofestuh rishiuir, by natural olijecls or other lliouuuienls, the actual liis between the territory acquired ljr purchas fioin Hussia and the adjoining H(sslons Of Jier Briin0 Majesty. .There kIou is mow ao tparaoly oueupied Hist 110 con O.iUdg ijilcrists of iiiUividiials or of juris.lu ripo are likely to inter!' to to the delxy ot em tWruaimeut of ttitiscia il locsiioa of the line. Jftielcrctbuulil the popu.Vdou shull cuter and winpj; (be Krjluiry ujoo in vial oouUst ot iieigliooivs -iy aaiu arMy the two jfoviru Hicntf Id antagonism. 1 therefore reeonnuend the appointment of coiuinisMontto act Jv.ady with one thflt may be appointed on the part of Great Britain, to determine tlic line between our territory of Alaska and Cha co-terminu possessions ol Great Britain THE FISHERIES QUESTION. In niv last annual messnjju 1 recommended Die leghlation uecesaaty on thu paM of the United Suites to hrhiif; Into opcrntion thu nrtl cli s of the Tnaty of W ashington, of May, 1871, rrlalinit to thu flslu rii s and to olio r mutters touching thu relations of thu United Sla'cs tow aril the British North American pus si rsiohs, to become operative so soon ns Hie legislation should be had 011 the part of Great Britain, and her possessions ; that legislation 011 the part ol'Great Britain and lis possessions had not then been hud, and durinir Ihu session of Congress a question was raised which lor Ihu lime, raised a doubt whether any action by Cmigrcus In the dlreelkin indicated would be 0 imu import iM. This question has since been disposed of, find 1 h.ivu receive d nnllcu thill the imperial Parliament and thu LckUIii lure of the Provincial Government have passed laws lo carry Ihu provisions ot thu treaty on thu matters referred lo into operation. I there fore recommend your curly adoption of the legislation in the. same direction n.cessiiry on tin: part of tliis Government. THE NORTHERN BOUNDARY COMMISSION. The Joint Commission for (h lirniliiliin the boundary linu beiween Ihu United Stales and the Briiisli l'ossi stions between the Lake ot the Woods and the Kocky Mountains has oruiii.ed and entered upon Its work. Il is desirable that Ihu lorcc be. increased iu order that the completion of the survey uud deter miiiaiion of thu linu may be the sooner nltuin ed. To this end 1 recommend Ihut u sufUelent appropriation be made. RELATIONS WITH OTHER COUNTRIES. With France, our earliest ally, Hussia, t lie constant and steady Iriend 01 the United Stales, Germany, wim whose government and people, wu liave so many caiisi s ol Irieudshiu and so tunny common svmiialliics. and thu other powirs of Europe, our relalions are muiiiluiiu d 011 thu most iriendly terms. TREATIES RATIFED. Since my last niimial inessngu the r.clmnji;o bus been made nf the miilicniions of a treaty w iih the Ausiro-ll jiim ciu Kinpire, rclaliii(r lo nai.ura:iz.iiiou ( also ol a ireaiy wiih the Ger man Empire, ri spieling Consuls and trade marks; also ol u treaty wild Swecden and Norway r Lilian lo naturalization ; nil ot w hich treutii s Imve been INTERNATIONAL STATISTICAL CONGRESS. C.mr(ss ai its laAt Mt-tiou having nuiile an nppropri.iliou to delrny Hie expense ol coiiuni imoiicrs on the pull 01 ilie L'mitd Stales to tne inti riiutioual Siatisiical Concress at Si. 1'etels liui'tr, thu persons appi-luted in Unit charnc;er projeuded to their ueslination 11 lid nllunded the seSttioiis- of thu Congress. Their report shall in duu suusou bu laid before you. This Congress meets at intervals or iiuout three years, and lias held its sessions in several ol me couutriis of Euiope. 1 submit lu your consideration thu propriety of extending un invitation to Ihu Coiiuress lo lioui lis next meeting iu iiiu U'uilcd Stales. Thu Ccnli iiniid ctlelii'iiiiou, to be held in lSTli, would ull'ord uu uppidjiriiitu occasion lor s.icli 11 inceling. THE VIENNA EXPOSITION. l'rcparalious arc nuikiiig for Ihu Internation al ExiiomiIoii to bu hcM (iiuiiiif tne next year in Vienna, on 11 scale ol very ureal hiiil; iiiiude. The tendency of these expositions is in ihu di rection of advanced civilisation, uud of the elevation ol industry uud ot labor, mid of Ihu increase ol human happimss, as well in' greater ii.lcrcourse mill good will between nations. As ibis exposition is lo bu the flrsl w hick viil huvu been held in Eastern Europe, il is lielieved Ihut American inventors und luiiuu fuciurers will Ou ready lo itvuil themselves 1 f tile opportunity lor Ilie preseiitalioii of Ibi I prodiieiioiis, il encouraged by proper aid hi d protection. At the last session ol Congress ..dihoriiy Was given lor the appoiuiineiil ol one or more ugi 111s lo represent mis govern ment ul Ihu Exposition. The aiillioriiy thus given lias been exercised, but in Ihu absence i.f "sy uppi'opriiilioii there is danger thai Ihu im portant beuelils winch the occasion oilers will in n large degree bu lost 10 the ciu.nis of I lie Ullilud Slates. I commend Ihu subjeclsiroiig ly to your consideration, mid n commend II, ul an iideqiuilu itpproprialion bu made lor ibe purpose. To liiriner uid Amuiici.n exhiliilois at lue Vienna Eximsiiion, i would recoinniei.il in iiddiliou lo an appropriation ol money, ihut the Secretary ol the Nuty bu miihurizud to til up two 1111 a I vessels lo iiMiispori beiween our Ailautic ci,l''H iiml T rieste, or ihu most coi, venienl port to Vienna und O.icx, their itrlicles for exhibition. MEXICAN AFFAIRS. Since your Inst session, ihc President of (lie Mexican Hepublic, distinguished by his high cburticlcr 11 lid by Ids services to Ins country, bus died. His temporary aucu ssor has now l.eeu elected with great iinaiiiuiity tiy the peo ple, i prool of conlbleiice on Iheir part in his pull iiHJSin and wisdom, which il is lielieved w ill be confirmed by Ihc results of his udiiiiu islrulion. il is J 'ulicular'y desirable Unit nothing sliolilil.be left undone by the govcru iiieiil oVeiihcr republics o sireugihen iht irre-' lallons us neighbors uud 11 lends. Il is 111 licit lo be regretted thai many luwusa uclscouliiiuu 10 ui.iturb the quiet of thu sell'.en'ciils on Ihu border between our territory ur.d thiii ol Mex ico, und Hull complaints of wrong to Am.ricun cili.eus in various purls of Ihu country uru made. 'I hu revolutionary coiidiiion iu which thu ncighboiiiig republic has so long been In volved has in some degree contributed lo this disturbance. It is to lie Imped thai with u iiioru settled l ulu of order through ihu it pub lic, w hieh may be expected Irom thu present govcrnmen , tun acts of w hich Just complaint is made w ill cusse. The proceedings of thu Ciiiiiniissioii, tinder the Convention with .Mexico, of thu 4lh of July, 18UM, on the subject of claims, have un lorlunatily been clu cUud by uu olstuclu fir tlm removal of w hich mcustirvg huvu bum 1 1 U by the two governments, which it is lie lieved will prove successlul. Thu Comiuis siomiis appointed puisuant to the Joiul itsolu tions ol 'Coiign hs of Ihu seventli of May last, In inquiru into d( pn ilallons on the Texns fromii r, have ilillgenily made iuvesligiillons in thai quarter. T heir n purl upon the sub ject w ill tie communicated to you. Their re searches wire necessarily lncoiiiplele, puilly on account of thu limited uppropriulloii uuide by (ou.ureis. Mexico.on the pal l of that gov ernuieiil, has appointed u similar commission lo invesligHle lliesu oiilriiges. Il Is not uu notinced idlleiully, but the press of Ihut coun try siaie that the 1 11 1 It hi investigation is dt sir en, uud Ihut the co-opcraiioii ol nil panics eouceriied is Invited lo seeuru that cud. 1 therelore recoiliiiu ud I lull a special appropria tion be made at the earliest day practicable, lo enable Ibe commissioners .011 Ilie purl of thu United Stabs lo ret 11 1 11 tu their l ibms without THE CONDITION OF CUBA. It U wiih regret Unit I have again to un noiince the coiitiiitiiince of the disturbed con dition of Hie island ol Cuba. No advance to ward thu pacification of ihu discontented part ol the population has been made, while the in sin rv clinu bus gained tin advantages, und ex hlhlis no mom of the i-leiiienls of Miwer, or of the prospect of ultimate success than were ex hibited u year ago. Spain, oil Ilia other hniid, bus not succeed' d lu lis repression, und the parties stand uppiin nlly in the sumu lelalive AitilUiie which they have occupied for a long time p.tit 'J bis ecu lest has lusted now for more lli;iu lour years. Were it seen si a dis tance trout our neighborhood we might be in different to III iisult, although litimuuliy could not bu unmoved by many of lis incidents, wlierefer they might occur. It Is, however, at outdoor. I cr.nnol doubt lhat Ihu contin ued mulnienaiice of slavery lu Cuba Is among lb strongest indueeiiielils lo I lie iDUllnuiilicu of this s;rtle. A lerriblu w rung is lh.' naturul cnusu or a lerriblu evil, 'ibe abolition of slnviry and Ihu Iniroiluctiow of other ri'l'oriiia In the administration of goveffimsnl lu Cub could not tail lo silviinco tlsw restoration of pesco and order, ll Is especially to U iiopi d ihut thu present liberal Government ol' Spain will volunluiily adopt lids view. Thu law of rmanclpalioii, w hich was p ivied more than two years since, bus remuliiud unexecuted. In thu ubscuce of reuuliitioua for its enfurccmeut It whs but leuble ateji towurd emancipation, but ft was Ihe recoguiiiou of right, and was hulled us such, uud exhibited Hpuin In harmo ny with) the seutlmenls of liiiinuuliy and of Justice and lit sympathy with the other poweri of Ihu christiau aud civilized world. - W llblu the past few weeks Hip regulation for carrying out lbs lawa of Einnoelpaliuu bv bon announced, giving evMeuc af tua siuctrily of iuleutiou of the preaeni govern lueni iwearry iuio elluct the law of tU. I have not fulled to' urge thu consideration of the wisdout, th policy, and tb Juitlc of ft nwto effective fystem for Ilia ambition of the (treat evil which oppresses race, niid conllnnea bloody and destructive eon test tloso to our border, as well as tle ex pediency mid Ihejutico of conceding n -tor 111s ol whicli the propriety la not questioned. Deply hnpn ssed with Hie convicliou that Ihu cimltnuanec of slavery Is oneol Hie most act I e causes of tk coiilhiuance of the unhappy conclliioii in Cuba, I re;ret lo believe that the cilir.ens of the United Hialeg, or Ihose claiming lo lie such, nre large holders in Cuba of what is there claim, d us properly, bin which fe for hidiVeintod denounc e, ly the law tA, the United Stales, They nru thus in di fiance of the spirit ol our own laws, contributing to the the continuance of this dislresslug and sickening contest. Iu my lust annual incssago I referred to this subject, and I again recom mend sm h legislation ns nny bu proper to dis courage American citizens from holding or dealing In slaves. THE SOUTH AMERICAN REPUBLIC. It Is gratifying to announce (hat Ihu rntifl Cation ol Ihc convention concluded under the auspices oMhis government, between Spain on the jne part and the allied Republics of the Pacific 011 the other, providing for un nrnii slice, have been exchanged. A copy of tile instrument is herewith Mi.nnitted. ll is hoped thai this may bu followed by a permanent peace beiween the same parties. The dill'crcnce which alone time threaten ed the maintenance ol peace beiween Brazil, and Ihu Argentine K. -public; il is hoped tire lu the way of satisfactory adjustment. With these states, as wiih thu republics of Cenlral and S.1111I1 America, we couiiniio lo niuiiituiu the most In. udly r. bilious. THE VENZUELA DEBT. regret, however, announce that the Government 01 Venziiula has made no ful Iher payments ou account ol Hie uwsrils under the Convention ol the 23 Hi April, 18litl. That lb public is understood lo bu now almost ll not quite iraiiquilizud. It is hoped, therelore, that it will loose no time iu providing lor the un paid balances of its debt 10 the United Stales, w hicli, having orlgiuuted in Injuries lo lis cit izens by Vcuiziiclanniilhoiitics, having been acknowledged pursuant to u trenly in ihu most Solemn form knoivii among nanoin, would s "fin lo deserve 11 p rule re nee over debts of 11 dillcriiil origin, and contracted in a different inunner. This subject is ugniu recommended lo t iu attention i.f Congress lor sucu action us may be deemed proper. JAPAN AND CHINA. Our treaty relations with Japan remain 1111 cliatigid. All imposing embassy Irom that inler. sliny und progressive iiiuiou visited Ibis country during I lie year lhat is 'passing, but being unprovided with powers lor lue signing ol a convention in (his country, uo conclu sion iu that direction wss reached, ll is hoped however, that Hie interchange of opinions which took place during their stay in this country bus led to a mutual appreciation of Hie interests wuich may bu promoted when the re vision of the existing treaty shall bu under taken. In tliis couiKction 1 renew my rccom nieiidiilioii of one year ago Hint to give im portance and lo add to thu elllclency of our diplomaiiu relalions with Japan and China, uud lo 1 11 rtli 1 r uid ii. retaining thu good opin ion of lliesu people, and to secure lo Ihu Uni ted Slates its ghur-3 of its commerce destined lo How between these n itiotis uud the baliincu ol the commercial world, 1111 appropriation bu made lo support ul least four American youths in each of lliesu countries to serve tit pari nf the ofllcial family of our Ministers. Our rep riseulatives would not even then bu placed upon equality with thernpreseiiiutivc.1 ol Great liiiiiun ana of soinu other powers. As now situated our representatives iu Japan and China have to depend for iulcipreler and triinduii a upi n unlive ot those couu triis who know our language imperlecly, or pmcr 1 for the occasion thu services 01 em- uoyes in lorelgu business houses, or the in terpreter lo other lorcigu Ministers. TRANSFER OF THE TERRITORIAL. DEPARTMENT. I renew'my recommendation matin on n pre vious occasion, of Hie transfer lo the Uepart inent of the interior, to which they seem more appropriately to la-long, of all Hie powers and duties in relation In viiu territories wlili whicli the department of Stale is uow churged by law or by custom. TRANSFER OF THE TERRITORIAL. DEPARTMENT. CONDITION OF THE TREASURY. The mouey now received and cu ricil Into the Treasury during the Ascul yenr ending Jiimi 80, 1B72 : Irom the Customs, $'21 (J,;)?!);. 280 77; irom the sales ot Public Lands. If'i, nrA.TIilO; lio n in.einiil Revenue, IJIiaO.OW 17J 72 ; irom lax 011 Nuiloual Jlaiik circulu l!on, tke., .W3,!l!l(l 119 ; irom Pucilli: it iilioud Coinpniilcs, $71U.8(ll 7; from Cudom, Fines &e., l,iail,42 H4; from Fees, Consular, Pat fiit.Limd, Jic, !4.2H4,()U.')Ua; from mlscullu neons aouie.es,t l,4lZ,2il 71 ; total ordinary ru ceipls, fatll,(l4,a-'U 111 ; from premium 011 salts of Coin, $U,412.Gy7 0j ;lolul nel nceipts, 371, 116,1137 fill ; balance In Treasury June 30th, l71. IOU,035,7l),1 51. including K)18,228 3.1 received In luuvuilbiblcj total avail. tlile cash, 48t.042.57U 1.1. Thu expenditures by warrants during the same pi riod were : for civ il expenses. I6,1MU,0uU 70 ; lor for. gn inter ests, I8.4ll!),;im 14; Indians, 7,OuS,728 82 ; pensions, 28,533,402.70 : for military establish iiienl, Including I'ortltlculious, river and harbor improvements, and itriciiuU, $J5 327,157.20 : for naval eslnblishnu nts including vessels and niaclilni ry ami improvements at Ihu navy yurds 21,249,800.1)11 ; fof mlscellanuous civil, including pub. la buildings, liu'liilmm-es, and collcctiug llm revenue 12.053.320.08; interest on the public debt 117,1157,830.73; total, ex clusive of i'incipnl and piviuiiim on public debt 2iO,55ll,u05.0l ; for premium 011 bonds purchased 4,0118 200 75 ; for redemption of the public debt 0ti,!)()0l253.S4 ; total 100,018, 52' . to 1 total net disbursement 377.4?8,210.2I: btlaucu In treasury Jumi HOlh, 1873, 18,504, 350.01; total l84,043,0i'3.15. REDUCTION OF PUBLIC DEBT. From the foregoing sbitemenls ituppeiirsthnt the m l reduction of Hie principal of iho debt diulng the fiscal yeur ciuling Junu 3D, 1873. was U0,0(I0,83IU4. Thusouicu of this reduc tion is us follows: Net ordinary receipts du ring thu year, 304,004 01. Net ordinary ex penilliiires, including Interest on public debt, 270,550,005.01 ; difference, tjU4,I34,534 00. Add amount of receipts Irom premium ou, sales ol gold in excess of premium on bonds purchased 3,454.470.80 ; add ihu amount ol the luduclioii of the cash biilluncu at the close of Ibe year, accompanied Willi Ilie same at Ihu commencement of ihu vcur, '1,081.043.05, total 00.000,252.54. This is Ihu state ment ol trials solely of thu principal of Hie public debt. By the monthly statement of the public debt w hich ndds together the prin cipal and Interest due and unpaid and inter est accrued lo datu dun, and deduct the cash in ibe treasury us according. On the day of publication the reduction was 100 544,401. 2f. Thu sum vu of this reduction is us follows: re duction in principal accounts, 1)0,000,003.54 ; reduction in unpaid litis rut uccounts, 3,830 053 00. total, 103,200,050 Bo ; reduction In cash on band, 2(740,4(1,').32 lotnl, 1)0,541,41)1.38. On the basis id' Ihu lust table, Ihu statements show a reduction of the public dubt Irom the first of March, 1801), to the present time, as fol low s ; From March 1st, 18UU, to March 1st, 18 70, 47,134,782.84 ; fiom March Is', 187o, to March 1st, 1871, 1 17,010,30 29 1 from March I, H71, to March ), 1873. 01.805,348 04 ; Irom March 1, 1872, lo Nov. 1st, 1873. eight months 04,047.237.87 ; total, 303.000.000 87. Willi iho irreat reduction of taxation by the act of Ouigresaat lu last session, the expenditures or Government In collrciinir reveune w ill be much reduced for thu next lUcal yeur. It is very doubtful, however, w hether anyjrcduclloii of so vexatious a burthen upon any people will be practicable for the present. At all events, as ii.easur of Justice lo the holders of the nation's certificates of Indebtedness, I would recommend that no more legislation be bat) on this subject, unless it be to correct errors of omission or commission In Ihu present Ihwa, Ufdll sutllcleiil time bns elapsed lo prove that ll Cu he doue and still leave sufficient revenue lo meet (lie current expenses of the Govern men I, pay iillcrcsl oil the public debt, and pro Tide lor lh sinking fund established by law. Tho preservation ol'our national credit is of ibe idghest Importance, Next In Importance to this comes a soleinu duty lo provide u national currency of fixed, unvarying value, ns com pared with gold, aud us soon as prnclicablo, liavlug duo regard for tho Inter 's of tbu debtor chisa, and tbe vicissitudes of trsdu and commerce aud controvertible (ulo gold at pur WAR DEPARTMENT. Tbe report of the Secretary nf War shows the exH)iulluirea of the War Department for the fiscal year ending J una V0, 18T1 l be $3V 700.001.HJ and lor the fiscal year ending June 80, 1873. lo bo 133.3,157.20, showing a reduo tloa lu favor of Ui last fiscal year of f illfiOi- .(12. The estimates for military aniironrbillons lor lh next fiscal year, cndiiiit June HO 1874, are 3301,878.78, The estimates of the Chief of Engineers are submitted semrately for I'ortincationa, river and harbor improvctnenls, and tor public buildings and grounds and the Washington Aqueduct. The atluiia of Hie Fruedmeu s Bureau have all been transferred to the War Department, and regulutlona liave been put Into execution lor Hie speedy pay ment of bounty, pny, etc., due colored soldiers, properly coming under that bureau. All w ar accounts lor money and property prlorlo 1871, have lieeu examined aud transmitted lo the Trensiuy for unit aelilement. Dining the fiscal year there has been paid for transporta tion ou Hiiilroiuls, J5oo,ooo, of which 80, 857 was over thu Paeillo Kailrouds; for trans portation by wnter, 02,0)17,852, and by stages 48,075.84 ; and lor the purchase of transpor tation animals, wagons, hiru of leannlers, etc., 924,050.04. About 37o,ooo huvu been col lected irom Southern railroads during the yi ar, Tunvlnif aboul 4,ooo,hio still due. The quarteiiuaslcr has examined uud transmilled to the accounting officers for settlement, fUO. 717,273 of claims ly loyal citizens lor quarter master's ston s taken during the war. Sub sistence supplies to the amount of 8,904,813 have been issued lo Indians. The annual average mean strength of the nrmy was 24, 101 white uud 3,404 colored soldiers. The loiul number of deaths lor thu year reported were 807 while and 64 colored. Thu distribu tion of the medical aud surgical history of Iho war is yul to be ordered by Congress. There exists uu ubsolule necessity for a medical corps of the full number csl'ihhsbed by net of Con gress of July 38, 1800, there being now 59 vacancies and the number of successful candi dates rurely exceeds eight or leu in any one year. Too river and harbor improvements have been curried on with energy and economy. Though many uru only partially completed, thu results have saved lo commerce 111 uny times Hie amount expended. Thu increase of com merce, Willi greater depth of channels, greater security iu nuviguttoii, and Ihu saving of time, adds millions lo thu weulth of Hie country, mid increases Ihu resources of Hie government. The bridgu ucross thu Mississippi river at Itock island bus beuu coniple.ed, aud Ihu proper situ has been determined upon at La Urosse. The utile uud exhaustive report inuilu by thu Commissioner appointed to inveslijiilu Hie Sutro Tunnel bus been transmilled to Con SIGNAL SERVICE DEPARTMENT. The observations und report of the signal olllcj huvu been continued. Suuious nave beuu maintained ut cacti of tho principal lake, seaport und river cities ; ten additional stations liave been inuiiiiuinud iu Hie United Slates, and arrangements iiavj been made for un exchunge of reports with Canada, und u similar exchunge of observations is contemplated with thu W est Itidiu islands. RECOMMENDATIONS TO CONGRESS. Tho favorable attention of Congress Is in vited lo thu following recommendations of IhuSecrctury of Wnr: A discoulinuuncu of Hie appointment of extra lictileiiuuts to serve us udjulanls uud quurlermasluis ; the udnpiion of a cudu providing a specific penalty lorn well defined offense, so that Ihu inequality ol sentences udjudgtd by court-martial may be adjusted; thu consolidations of accounts un der which expenditures uremudc,as 11 measure of economy ; a re-uppropriuliun of Ihu money for a depot ut S,m Aiilouio, the litlu to thu situ boiu now perfected; a special act placing the cemetery at the cily of Mexico on 1 lie siime basis us othur national cemeteries; authority to purchase military posts iu Texas; thu uppoiiitmciit of comtnisury sergeants from nou-couimissioiied otlicers, as u measure for securing thu belter caru and protection of snpp'ies; an appropriation of the catalogue table of ihu uiiaiomical section of thu Army M.'dical Museum ; ti rc-appmpriulion of the amount tor the inunulucture of breech loading urms, should the selection bu so delayed by thu Board of Otlicers us lo leave the loruicr up piopriutiou unexpended at thu close of the fiscal year; (he statu of such arsenals east of the Mississippi as cau be spared, nnd thu pro ceeds applied to Hie establishment of one large nrscmil ol construction and repair upon the Aluniic coast, and ihu purchase of 11 suitable silo lor a proving and experimental ground lor heavy ordinnnce ; the abroguliou of thu laws which deprive inventors in the United States service Irom deriving any beiiefit from their inventions ; ihu repeul of the law pro hibiting promotions in the stall' corps ; a con tinuance of the work upon the const defences; thu repeul of thu seventh secliou of thu act ol July 13, 1800, taking from an engineer soldier thu per diem grunted to other troops; .limi tation of time lor the preajiituiion of subsist ence supplies, under net of July 4th, 18H4, and a inodihcaliou of thu modu ol the sulecliou ol Cutlets for the Miiilury Academy, in order lo enhunce the usefulness of thu Academy, which is impaired by reason ot the large amount of lime necessarily expended iu giving new cadets a thorough knowledge ol llm mure elementary brunches of learning, w hich they should ucquiru before cntcrniii,' ihu Academy ; also un appropriation lor philosophical appa ratus, uud an increase in the number uud Ihe pay of tnu Miiilury Academy Bund. RECOMMENDATIONS TO CONGRESS. THE SUBJECT OF CHEAP TRANSPORTATION. Tho intention of Congress will bu culled during its present session to various enter prises for the more cerluin and cheaper trans portations of the consinully increasing surplus ol Hie Western and Southern products lo the Atlantic seaboard. The subject is 0110 that will force itself upon Ihu legislative brunch of the government sooner or later, und I suggest, Iherelore, that iinmedialo steps lie lakuu to gain nil uvuihiblu information to Insure un iquilablo aud Just legislation. Thu route to connect thu Mississippi valley w ith thu Aliun de at Charleston, South Curoliim, and Biuiun null, Georgia, by w uter, by the way of thu Ohio und Tennessee rivers, und canals nnd slackwuter navigation to Hie Bivannuh und uumulgeo rivers, bus been surveyed and report made by an accomplished cngiuecr, uu otllcer of thu army. The second and third new routes will be proposed for tbu consideration of Congress, namely, by an extension of the Kunuwtia aud James Kiver Cunul to tho Ohio, and by the extension of ihu Chesuoeuku und Ohio Cunul. I am uol prepared 10 recommend government aid lo these or oilier enterprises until ll is ciuarly shown Uiui they are notoulv of uullouul iulcreal but that, wbeu completed, tuey win oe 01 a yiuuu commensurate with their cost. That production increases more, rapidly luau tho means of transportation in our country bus beuu demonstrated by past experience; that tbu unprecedented growth lu population und products ot thu whole country, will require additional lucililies and cheaper means lor ihu more bulky articles of commuicu to reach tide water uud a market, will bu de manded In the near future, Is cquully demon strable. . I would therefore suggest either a couimllteu or commission lo bu authorized to consider this whole question, aud lo repurt to Congress ul soiuo fuiuru day, lor its butter guiUaiicu lu legislating on thu iinnortunl sub ject. The lailroads of tho country have been rapidly exteudud during 'tho lusl lew years to mucl iho growing deinunds of producers, aud reflect much credit upou the capitalists uud managers engaged iu Iheir cousirnullou. In udditiou to these, a project to luciliiule com merce by the building 01 a ship canal around Niugara Fulls, on tho United btalea side, which has been agibiled for many years, will uu doubt bu culled to your attention this sea sliu. Looking lo tho groal bit uru of Ihe coun try, thu increasing demands of commerce, it might be well, while ou Ibis subject, uolouly lo have examined and reported upon the vait uus practical routes for connecting ihe Missis sippi with tide water ou tho Aliunde, but thu feasibility or an almost continuous laud locked navigation front Maine to thu Gull of Mexico. Such a roulo along our coast would bo of ltroul value at uU liaies, uud of inestimable vuluo lo cuso of foreign war. Nature has provided Uie greater pull of this route, uud Iho obstacles lo he overcome are easily within the kill of the eugliieer. 1 have uot yet ulluddu lo this subject with the view of having auy lurlher expuudiluro of publio mouey at this lime thau may be necessary to orouuia aud tiluco all thu necessary information beloro Jongress In un autheulio form, to enable it bureultcr, 11 deemed praclicablu and worthy, to leglalalu ou Ihu subject without delay. , NAVY DEPARTMENT. report Secretary Navy, berewilh accouipuny ing, explains fully the condllou of lhat bruucli of thu publio service, its wauls aud deficiencies, expenses luourrud liurliu tho past year, and appropriations lor llm same. Ii also glvrs complete history of the servloes oi the navy for the past year, in addition to lis regular services. . It is evident lhat u a I ess steps are lakuu to preserve our butt, tbiil In few years the Culled Stales will ba tbe weakest nation upon the ocean of Ui iu (igat powers. Tlii u cucrgoipt, pro grrsstve business people like ours, penetrating and lormiiig business relations w ith every part 01 ine Known worm, a navy strong enough lo command tbu respect of our flag aliroud Is necessary for the lull protection of Iheir rights. I recommend careful consideration by Con gress of Hie recommendations uiadu by the Secrelury of the Navy. POSTOFFICE DEPARTMENT. The accompanying report of tho ro1mrtT General furnishes a lull and salisiuclory ex hibit of the operations of Hie Postofllce De partment during Hie year. The ordinary rv enuo ot the department lor thu fiscal year end ing June 80th, 1873. amounted lo 21,015,4J6, 87, aud the expenditures, (20,058, lWi.81. Com pared with the previous fiscal yeur thu in crease of revenue was 1,878,280.05, or 037 per cent., and the iucrensu ol expenditures J,2U8, 088.23, or U29 per 0 nl. Adding to thu ordin ary revenue the annual appreciation ol'7oo,- 000 lor free matter, and luu amounts paid lo the subsidies oil itvuil steamship lines IV0111 sptciul appropriations, Ihe detlcleucy paid out 01 Ine general Treasury was 3,817,705.04, an excess ol 3,807,007.88 over thu deficiency for the year 1871. Other interesting statistical in forinutiou relating to our rapidly extending postal service l lurnisbed In this report. The lotul length of railroad mud routes on the 80th of June, 1873, was 67,011 miles, 8,077 addition al miles 01 such service having been put into operation during ihu year. Eight iuw lines ol railway postolbces have been established, with uu aggregate length of 2.U0SI milcn. Thu number 01 letters exchungid in the mails witli foreign countries was 24,302,aoo, 1111 increase of 4,000,502, or twenty pur cent, over the nunvbvr in 1871, and the poslsge thereon amounts, to 187,125,725. Thu total weight oi Ihu malls exchanged with European countries exceeded 820 lous. Tho cosl 01 thu United Slates truns Atluutie mail steamship service w is -$)2J,30i,-70. The total cosl of lUu United States oceun sieamsbip service, including the amounts paid to the suusidized lines of mail steamers, was 1,027,020.07. Tho following uru the only soj'aiusbip lines now receiving subsidies tor mail service, uuder special uct of Congress : The Paciliu M.il Steamship Company receive 5oo,ooo per milium, for currying u montly mail between S.tn Francisco, Jap .11 aud China, wuich will be increased to 1, 000,000 oer 1111- IMiiim for a semi-nionihly mail, on and after October 1st, 1873. Tne Uuiled States and Bra zil Mail Bleainsiiip Company receive ISo.ooo per annum for carrying a- monthly mail be uvetn Nuw York and liio do Janerio, Brazil, uud Ihu California, Oregon and Mexico Steam ship Company rcceivu if ?5,00d per annum for cairyiug am uilhly mail Oct ween San Francis co und Honolulu, Hawaiian Islands, making Hie total Hinouut of mail steamship sutistdiesul present 725,001) per annum. Our poslul cmu inunicalious witli ul-iarts of the civir'tzed world have been placed unon a most advuula- geous footing by the improved postal conven tions, unu iuu urrangumeiils recently conclud ed with Ihu leading commercial countries of Europe uud America. The gratifying state ineul is made Hint, witli tho couc.usiun of a satisfactory convention with France, Hie de tails of winch have been deliuitely agreed to by Ihu head of Hie French postal dcmtruiient. sub ject to the approval ol the Minister of Fiuunce, nine remains 10 uu uccompltsiied by Hie treaty for some iimu to come, in respect to Ihu reduc tion ot rules or improved facilities for postal intercourse. Vour luvorublu consideration is respectfully invited to thu reconinieiululions made by thu Postinastur-Ouneral for 1111 iu crensu oi'survicu from monthly lo semi-mouth- ly trips 011 iuu mail sluamshlp route to Brazil ; lor n subsidy for the establishment oi uu American linu of mail stuum rs b tween Suu Francisco, New Zeuhtnd und Australia; for ihu establishment of post-ofllce saving; bunks, aud lor Ihe incruasuot thusalerics of luu heads of bureaus. 1 havu heretofore recommended the abolition of Ihu franking privilege, and sue unreason now for changing my views on Hint subject. Ii not having beuu luvnrubly remin d ed uy Congress, however, I now suggest a modiliulion of that privilege, to c.irrect its glaring uud costly abuses. 1 would recom mend, also thu uppoiiitmciit of a commillue on commission lo l ike into consideration ihu best muthud, equitable lo priyulu corporations who have i-ivested their liniu uud Capital in the es tablishment of telegraph lines now iu opera tion, und ol couuuciiug this service with thu postal service ol Iho lniilon. It is not probablu Uiui this subject could receive thu proper con siduruliou during Ihu limits of u short session of Congress, bill il may bo initialed so thai lurlher aclion muy bu lair to tho goreriiiuuul und to private, parlies concerned. There nre but Ibree lines ol ocean steamers, namely, the Pacitte Mail Stuuiusliip Company, beiween Sm Francisco, China and Japan, with pro vision uindu for suiiil-iuouthly service 'idler October, 1st, 1873; the United 'Slates and Bra zil line, monthly, und the Cabtoruiu, New Zealand und Australian line, monthly, plying between Hie United Stales and foreign porls, uud ow ned uud, operated under our flag. 1 earnestly recommend that such lilierul con iracis lor carrying tho mails bu authorized with these lines as will insure their cuitiuu unce. If Hie expediency of extending Ihu uid ol the government to hues of aieiimeis which hitherto huvu uot received il, should be deem ed worthy of Hie consideration of Congress, political nnd commercial objects niako il ad visable to buslow such uid 011 a line under our ting belwcuu Panama aud Ihe Western South American pons. By this means much trade uow diverted lo other couulries might bu br jughl to us, to thu mutual advantage 'of this country and those lyiug in that quarter of Ihu cuntineut of America. THE CARRYING TRADE. Tho report of thu Secretary ol' ilia Treasury will show an ularmiiig filling olf in iki r car rying trade for tiie la.-l leu or twelve years, und even for thu past year.. I do not bwlievu that the public treasure c.iu bu butter expend ed in Hie Intel esis of Ihu whole people, than in trying 10 recover tills trudo. An expenditure, ol 5,000,000 peranum for thu next live years, il il'wotild restore to ns our prop irtlon of the carrying trudo of Ihu world would be profi table expanded. Tne prico ol labor id Europu has s) much enhanced within thu lust lew years that tho cost of building and operating ocean sletuiers In thu United Slates is. not so much greater than in liuropj lhat I believe thu timer has arrived for Congress to lake this subject into serious consideration. KU KLUX. Detailed statements of the disbursement through the Department of Justice, will be fur nished by thu report ol the Attorney General and though these have been some what incas ed by Ihe recent acts of Cougruss to enforee thu rights 01 citizens ol Hie United Stales to vole in Iho several Stales of thu Uniou and lo force. tho provisions nlibu 1'ourletnlli amend ment to the Constitution ot the Uuiled btutes. uud llm amendments thereto. I cannot ques tion thu necessity and salutary elleti of Ihcse enactmeuts. lteckless and lawless men, I regret lo stiy, huvu associated themselves to gether iu some louulities, to deprive other citi zens ol the righs gurrunteed in them uy the Constitution or of Iho United Slates, and is Hint eud have com niltud deeds of violence, but the proscciitiuu uud puuishment of many of lliesu persons bavo leuded greatly lo tho repression ol such disorders, 1 do uot doubt that a great majority of iho people, in nil parts of ihe country, favor to Iho full enjoy ment by. nil clussus of persons of llic-su rights to w bich they are entitled uuder the Constitu tion and the laws, aud 1 Invoke Iho aid aud iu tiuencu of all good cilizeus to prevent organ izations whoso objects are by unlawful means lo iuterfuro with those rights. I look with conudciico to Ihe time, not far distant, when the obvious advautages ol good ' order . and peso will induce an abandonment ol' all com binations prohibited by tho acts refer rod 10, uud when il will be unnecessary to curry on prosocutious or Inflict punlshmeut to protect oitisuus Irom lite lawless doings of such com binations. Applications havu beuu mado to mo to pardon persons convicted of violation of said acta, upon tho ground thai clemency lu such cases would lend lo tranquilUo the miblio mind 1 aud.- In test the virtue of thai policy 1 am disposed, as fur as my sense of Justice will permit, to give lo these applica tions favorable cousidcratiou : but any uction thereon is uol to be construed as indicating any change iu my determination lo enforce with rigor snch acts, so long as Ilia conspira cies and combinations Ihoruin nauiod disturb the puace of the counliy. Il Is much to bo regretted, and Is regretted by uo oue more than myself, that a necessity has ever existed to execulu tho enforcement act. No one can do sire more than 1 thai the necessity of applying never bo demuuduii. DEPARTMENT OF THS INTERIOR. The Secretary of the Interior reports satis factory improvement aud progression In each of the several bureaus under tbe control ot tho Interior Dooartiueut. They uru all - In excel lent coudiliou. The work whivb lu soma of them tor some years has hnon In irrmn k.. been brought down to a recent date, and In nil the current business baa been promptly dispatched. THE INDIANS. The policy wlricli was adopted t tiro brginnliig ot tlw ndnrirristfation with re gurJ to the ManngciiMint ot Indians lias been as nuccessltil m ns most ardent friends anticipated. Within m ahort a titno it has reduced thu expense of their management, decreased their tbragts tip no thu white settlement, tended to give the largest opportunity to tiro extension of the great railways through tho pub lic domain, and tho pushing (A settlo ments into, wore rumote districts ot lh country, and at tho same timo improve Ihu condition c-f the IiidiiiDS. Tho poli cy will bo maintained without any change, excepting suclr as fiitihur experi ence may show to bo necessary to render it more efficient. Tho siihject of con veitlng tho so-called Indian Territoiyl south of Kansas, into a home lor the In dians, nnd erecting thereon a territorial form ol Government, is one oi great ini jwi lance ns a complement ot tbe exist ing Indian policy. The question ot re moval to the territory has within the past year been presented to many of the tribes resident upon other and less desir able portions of iho public domain, and has generally been received by them with favor. As a preliminary step to the organization ot such a territory, it will be necessary to confine the In dians . now resident therein to farms ot proper size, whicli should be secured to lliem in fee ; the residue to boused for tho settlement of other triendly In dians. Ellbrts will he made in the im mediate lntuie to induce tho removal ot as many peaceably disposed Indians only to the Indian Territory as can bo settltd properly without disturbing the harmo ny of those already there. There is no oilier location now available where a people who are endeavoring to acquire a knowledge of pastoral and agricultural pursuits can as well e accomodated as upon the unoccupied lands iu the Indian Territory. A territorial goTernment should, bow- ever, protect the Indians from the in roads of whites for a term of years, until they become sufficiently advanced in the arts and civilization to guard their own rights, anil irom the disposal of lands held by them for the same period. SALE OF PUBLIC LANDS. During the List fiscal year tlrerc were disposed of out ot the public lauds 11 804,975 acres, a quantity greater by 1,099,270 acre than was disposed f the previous year. Of this amoniit 1,370,320 acres were sold for cash, 389,400 acres located with military wanwils, 4,071 332 acres taken for homesteads, 093,013 acres located with college strip, 3,654, 887 acres granted to railroads, 465,347 acres granted to wagon roiids, 714,255 acres given to Stales as swamp laud, 5, 700 located by Indian scrip. Tho cash receipts from all sotirccs in the laud office amounted to $3,218,100. Luring the same period 22,010,508 acres of the publio land were vtirveyed, which atlded 10 the quantity before surveyed, amounts to 583,304,780 acres, leaving 1,257,033,023 acres of tho public lands still iinsurveyed. The reports Irom the subordinates ot the Laud Office contain interesting information in regard to their respective districts. They uniform ly mention the fruit fulness of the soil during the piiBt season, and the increas ed yield ol all kinds ot produce evince, in those States aud Territories where mining is the principle business, tho ag ricultural product to have exceeded the local demand, and liberal shipments have been mado to distant points. PATENTS. year 1872, lliere were issued irom the patent urt'ileu 3,020 patents, 233 extensions, and 550 curtiticairs and registers ot trade marks. During the same time 19,587 ap plications for patents, including reissues and designs have been received, and 3,100 caveats tiled. Tho lees received during the same period amounted to (70,095,980, and the total expenditures to 1(02,355,390, making the net receipts over ihe expendi tures 7,740,050. Since 1830, two hun dred thousand applications for patents havo been tiled, and about 134,000 pat ents issued.tho offices being conducted under tlvi same laws and general organi- z.ittonas were adopted; at their original inauguration, when only irom one hun dred lo tivo hundred applications were made per annum. .Tho Commissioner shows that the office lias outgrown the original plan, and that a now organiza tion has become necessary. This subject was presented to Congress iu a special communication in February last which met my approvl and the appoval of the Secratary of the Iuterior,and the suggest ions contained in said communication were embraced in a bill that was report ed to tho House by the Committee on Patents nt the last sessiem. The subject of tho reorganization ot the Patent Office, as contemplated by the bill reiered to, is one of such inpoi'taiice to tho industrial interests of the country that I commend it to the attention of Congress. The Commissioner also treats the subject of the separaton of the Patent Office trom the Department of the Interior. This subject is also embraced in the bill here tofore referred to. The Commissioner complains of the want of room for the model gallery and tor the working force and necessary files of the office. It is impossible to transact the business of the office properly without more room in which to arrange ntes aim arawings mat must be consulted hourly in the transact ion of business. The whole ol the Patent Office building will soon bo needed, if it it is not already, for the accommodation ot the business ot the Patent Office. PENSIONS. amount paid pensions last tlsoal year was 130,109,340, a'n mount larger by $3,708,434, thau was paid duiiug the proceeding year. Of this amount $2,813,409 were paid under tho act ot Congress of Feb, 17, 1871, to survivors of the war ol 1812. The annu al increase of pensions by the legislation ot Congress has more than kept pace with the natural yearly losses trom the rolls. The act ot Congress of Juue 8, 1872, has added au estimated ouiout of $750,000 per annum to the rolls, without increasing the number of pensioners. We cannot, therelore, look for any substan tial decrease iu tho expenditures of this Department for some time to come, or so long as Congress continues to so change the rates of pension. The whole number of soldiers enlisted iu the war of the Rebellion was 2,088,523. The total number ot claims for invalid pension is 170,000, being but six per otnt of the whole number of enlisted men. The to. ial number of claims On baud at the be. W-s V' . ginning of thtf year was 11,090;. tho number receives) during tlx year was 2, 174 $ tho numb disjiosed Was 9,17 making a net gain of 1,204, The whole number of claims now OTf Alo is 79.08.1. On llm unit. i T there were on the rolls the Names H" 95-- A rt I I! 1 ll . . r iiivBiiii military pensioner, 118,519 widows, orphans and dependent relative making an aggregate of 208,928 arm pensioners. At the same time trWrtr were 011 the rolls, the names pi 1,449' navy pensioners, and 1,730 widows, ' or phans nnd dependent relatives, making ihe w bole number of naval tA-nsioifers 3,170. Thero have Wen received since tho passaire of tire act to movide ten sions for the survivors of the warfrt J812, ou,ooi applications prior to June 80, 1872. Of these lliere were allowed dur ing tho last fiscal year 20,120 claims; 4,845 were rejected daring the year, leav ing 11,580 claims pending nt that date, Tho number of pensions ot all classes', irraillml flitrimr tim In! flir.nl r u. -. ...... v ... ...... . aiEw .. v, .. 1 ghi nun . 23,838 ; during that period tjiere were dropped from the rolls for various cause 9,104 names, leaving a grand total of 232,239 pensioners 011 the rolls tn the 30th of Juue, 1872. It is thonght that tho claims on account of the war of 1812 wilt bo disposed of by the 1st of Msy 1873. It is estimated that $30,480,000 will bo required for the pmisiow service during the neit fiscal year, THE CENSUS. Iho ninth census is about completed". Its completion is a subject of congratu lation, mat much as the Mo te lie made of the statistics therein contained de pends very greatly on the promptitude of publication. The Secretary ot the in terior recommends that a census be taken in 1875, which leeommt-nddtibn should receive the ready attention of Congress. The interval at present estab lished between the Federal census is so long that llwt information obtained . at the decenial periods as to the material condition, wants and resources of the natron is ot liulo practical value alter the expiration ot the first half of that period. It would probably obviate lh constitutional provision regarding the decennial census, if a census taken in. 1875 should be divested of all political character and no reapportionment of Congressional representation be made under it. Snch a census, eoming as it would in the last year ot the first, centu ry of our national existence, would fur nish a noble monument ot the progress of the United Slates during that cuuttv- ry- TERRITORIAL AFFAIRS. Affairs iu the territories nre generally satisfactory. Tho energy and business capacity of the pioneeis who are set tling up tire vast domains not yet incor porated into lates, are keeping pace its internal improvements and civil govern ment with tho older communities. Iu but one of them, Utah, is the condition of affairs unsatisfactory Except so far as the quiet of the cilizen may be dis turbed by real or imaginary danger of Indian hostilities, it has seemed lo be the policy of tbe Legislature of Utah-.te evade all responsibility to the Govern ment of the united States, and even to hold a position in hostility to it. I re commend a careful revision of the pres ent laws ot the Territory by Congress, aud the enactment ot such a law, as the one proposed in Congress at its last ses sion, for instance, or something similar to it, as will secure peace, the equality of all citizens bclore the law, aud the utter extinguishment of polygamy. Since the establishment ot a territori al government for the District of Co lumbia, the improvement of the condi-' lion ot the city of Washington and sur roundings, and the- increased prosperity ot the citizens, is observable to tbe most casual visitor. Tho nation being a larger owner of properly in this city; slioufd bear with 1 he cilizeus of the District A just share ot the expense ot these im provements. 1 recommend, therefore an appropriation to reimburse tbe citi zens lor the work done by them, along and in front ot publio grounds during the past year, and liberal appropriation in order lhat the improvement aud em bellishment of the publio buildings and grounds may keep pace wiih the' im provements made by the territorial au AGRICULTURE. . The Report of the Commissioner of Agriculture gives a very lull and inter esting account ot the several divisions of that department the horticultural, agri cultural, statistical, entomological, and chemical, aud ihe benefits conferred by each upon agricultural interests of the country. The whole report is a com plete history in detail of tile workinga of that department iu all Its branches, showing the manner in which the farm er, merchant, and miner is informed, and the extent to which he is aided in his pursuits. The Commissioner makes on recommendation, that measures be taken by Congress to protect and induoo the planting of forests, and suggests that no part of the public lauds should be dis posed of without the condition that pns lenlh of it be reserved in timber, where it exists, and, where it does not exist, iuduuemeuls should be offered for plant ing it. CENTENNIAL CELEBRATION. act of Congress, approved March' 3d, 1871, providing for the celebration of tho one hundredth anniversary ot Ameri can independence, a commission has been rgauized, consisting of two inembera from each of the States and Territories. The commission has bold two sessions and has made satisfactory progress in the organization and in the initiatory steps ueceseary tor carrying out the pro visions cf the act and executing the pro visions ot the act of June 1, 1871, creat ing a Centennial Board of Fiuauce. A preliminary report of progress has' been received lioiu the President ot the com mission, and is herewith transmitted.-nit will be the duty ot the Commission; at your coming session to transmit a re port ot the progress made, and ii- lay before you the . details relating to , Uf exhibition of American and foreign arts, products and manufactures, which; by the terms ot the act is to be bold under the auspices of the Government ' ef" Um Uuiled States, in the-city of Philadel phia, in the year 1870. '1 his celebration will be looked forward to by American citizens with great interest ai marking a. century of greater progress anf prosper Uy than is recorded in the history of auy other nation, and proving a, further good purpose in bringing togettvtr ou, our soil people of all the ci wnercial tia tions of tbe earth in a matter 'oakm'ateq to secure international good fgeli ig.',',:' ' CIVIL SERVICE BF FORM. Au earnest desire lias bvvQ full'l''viV