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PUBLISHED THURSDAY! -AT— Worthington, Nobles County, Minn. *•*»»•J-Two Collora a year. In id On* dot* larforsismontha: whycentotortta^ months. The Old Established Paper. Official Paper of the County. A. P. I O Gdltort THE ASSASSIN'S TRIAL. The Great Question ot (iu!tc»u's Sanity Now Undti Consideration by the Court at Washington. Guitean Is Playing tlie Insanity Dodge for All it I) Worth. Teattmony Shoiviug tliat tie ITas Uewu a HarJ Citizen, Lunallp or Otherwise. MONDAY, DEC. 3 Guiteau was late in arriving at the court bonce. An immense crowd lined the sidewalks and npon alighting from the van the assassin evinced unusual irepidatiou, and begged the officers to take him around to the back entrance He was assured hid escort was ample, and with trembling steps he quietly shufliod through the angry crowd. Dr. Ksnnon, managing editor of the Chicago Medical Review, gave hia opinion that Guiteau was insane. The witness baeed his judgement ofGuiteau'a insanity upon hereditary taiut, npon impartial judgement, excitable emotions, and upon inspirations, which also include a motive. The witness admitted that when a man committed a crime while acting under a delusion of divine inspiration and then conduct ed himself precisely as a criminal would do it would be presumptive against his insanity. Guiteau (angrily)—You are going too fast in this matter. Wo want facts, not vonr jud^e men*. The wituees had stated the'thiog right The lord injects in'o the spirit and then tells a man to use his own judgement to work it it out That's just in my eaeo. That's the way I cot my inspiration. The Lord don't employ fools to do his work. Ho gets tho best material Guiteau suddenly interrupted the examina tion, Mid despite Scoville's efforts to restrain mm, broke out in severe renunciation of his wife, saying he had ist noticed a discourse from tier which was full of mis-statements and if she camo into court to testify against him he would show her up. Richard J. Hmton, editor of the Washington Gazette, had eeen the prisoner at the republi can headquarters in Now York, and formed the opinion that he was exceedingly ill balanced and egotistic. Tho witness resumed by saying that the prisoner Beemed to be a per fect nuisance about the rooms, but was inter rupted by Guiteau, who rotortcd: "You wore a nuisance yourself. I'd rather be hung as a mau than acquitted as a fool, and I won't have anymore of this kind of evidence.'* Dr. Chas. A. Nicholas, of fcloomdale asylum replied to a hypothetical question proposed by Scoville: "If tho evidonce to which I have lis tened is correct, 1 should say the prisoner is insane." Vr. Foleom, of Boston, thought if the hvpo thetmal proposition put by Scoville wes correct In all particulars, tho prisoner was insauewhen he shot Pit sfdent Ga fluid. Dr. Samuel Worcester, of Salem, declined to express an opinion until couustf rxplaiued what ho meant by the term "inspira'ional Guiteau, impatiently—"When isauirspira tion by tho Deity on my mind of a thought and power foreign to my own will and mind That what meant. I've told you a dozen tunes Wituees was finally told by Scoville to stand astda Dr. Wm. W. Godding, of the government f? nm .. roi he a a a" toubtedl,yeifiitsanoseet Washington, thought that at th time forth in tho hypothetical uestion it wer true, the prisoner was un- Dr. James H. McBride, of Milwaukee, and Dr. Chatting of Brookline, Mass., also thought taking all the hypothetical propositions to be true, that tho prisoner was insane. Dr. W. Fisher, of Boston, would dislike to be conunedto the statement of facte contained the hypothetical questions, but if compelled to answer he would say he should judge the prisoner was insane. W itness was informed by the prosecution they would want him as a witness. 8coville announced that he had no more witnesses present and would introduce but two or three more before closing the case. TUESDAY, DECEMBER 6. Charles B. Farwell, member of congress from Chicago, related how Guiteau called npou him and wanted money to buy the Inter-Ocean, and told the witness if he would loan him $200,000 he would make him president of the United States. Guiteau cried out emphatically "That is false! I never made aD? such prop osition. I asked him to invest some money in the enterprise, but he eaid ho had already put $10,000 in the Iiiter-Ocean and would not put in any more." lie eaid he never thought the prisoner a esse sjan. Farwell was asked whether Guitean feoll distinguish between right and wrong, seel amidst protests from Sco ville and Guitean, ifae answered: "There were grades of insanity,«nd did not think the prisoner 80 insane but that he could distinguish between right and wrong. Scoville desired to note an exception. Guiteau cried excitedlv, "I watt this understood right here. I will put a stop to all this irrelevant nonseD so. I acted from inspiration. Judge Ccx, well that will do?" Judge Ccx replied to the prisoner, "You have said that many times, and you were not to in terrupt the court again." George Gorham, editor of Uie Republican took the stand. A discussion ensued uetween counsel upon the form of a question in which Guiteau insisted on taking a part. Turning to Scoville, he said, "You are getting a little cracked youreelf on this subject I won't have your line of defense. It's altogether too nar row." Gorham was told to step down when Guiteau shouted out, "Come baok. Gorham was relieved for the present The prisoner be came involved in an angry altercation with Scoville, in the course of waich he became very violent and denounced him as no politician and no lawyer. "You insinuated yourself uoon the defense just because you happened to be my brother-in-law." Judge Porter undertook to address the court, when Guiteau shouted im periously: "Now you Just keep quiet, Mr. Judge Porter. You are altogether too talkative this morning." Scovillo stated that he desired to have President Arthur testify in the case, and also Grant and Conkling. The rest of the time was occupied in reading Gaitcau's book "Truth." WEDNESEAY, DEC 7. The assassin was brought in as usual. lock ing very much as ho did yesterday, an odd little wretch in a dark suit, white shirt and landing collar encircled by an eminently respectable black necktie carefully tied. Above the black bow knot is a sensual face, irregular in con tour, with a rough *kin, pimpled on the fore head, and close out hair. He is eminently re pulsive in appearance at all timca. When he is angry he becomes a snarling brute. He addressed the court as soon as hia hand cuffs had been placed In the drawer of (he counsel taLle, on the old subject The ques tion, the principal question, was as to his as piration which resulted from the political com plications of last summer and yet Scoville, blundering along on another theoiy, had sum moned none of the great leaders ot the repub lican party to testify respecting it. Ho wanted the court to issue the aunpenaa he asked for yesterday. Or oourse the court again declined, and Guiteau, changing his pleading tone to one of determination, fiercely demanded au ex ception to the ruling. John Wilson Guiteau was in tears when his brother concluded the story of hia suffering and privations during his tour.. He could scarcely command his voice when ho spoke to him, but the hard hoarted assassin half sneered at him as ho snorted out: "Aud what* are you crying at now?" Gen. Sherman was called to identify the let ter written by Guiteau. As ho left the stand Guiteau said, "I thank you, general, for having ordered out tho troops that day. if mda't been for you 1 wouldn't be here to-day. I owe my life to the protection which you and Mr. Crocker g*vo me during that period when tho mob spirit was rife." At this the general ami!ol grimly. E. P. Barton, a lawyer, A. L. Green and G. W. Loade, all of Froeport, lit, testified that they knew the Guiteau family and considered them all sane. Dr. North was the most posiiivo witness in troduced by the defense, and by his showing the entire Guiteau family were more or lees in lano. THUBSDiT, DECEMBEB 8. Aa soon the criminal court opened this morning, Guiteau shouted out: "A crank in Chicago says I talked with him about this case. I don't km the man. It is false." CoL Rockwell called as the first witness of the day Mrs. J. M. Wilson of Leadville, CoL She knew L. W. Guiteau from ber earliest recollections. The witness was questioned in regard to vari ous members of the family, and stated posi tively that she never saw indications of insan ity in any of them. Speaking of the prisoner's father, L. W. Guiteau, the witness said: "My uncle, Luther, visited me frequently, and I loved him with very tender affection. Our whole family were delighted with his lovely Christian character, and snoh a thought as that ha might in any degree be of unsound mind never entered my head. All this midst con stant interruptions from the pris oner and shoutings to others. Guiteau be came enraged at Judge Porter and shouted, "Nowhold your thunder tillyou get to the Jury. Judge are doing this sort of thing too muoh.^ Judge Porter, without noticing the outburst, continued in a most impressive man ner to argue his point, when Guiteau broke in again, "i'm not a criminal, and I won't be until I am convicted. I won't have that word Yon usthold your eloquence tillyou get at the Jury'* CoL Corkhill called Geo. a Mavnard, who verified on several material points the testi mony of the preceding witness. The couit was about to announce the usual recess, wnen John W. Guiteau arose and said: "Your honor, I greatly desire to make a personal ex planation. My father is dead—"Guiteau broke in, interrupting him: "Oh! shut np! and ait do*ro! You have been vindicated" Davidge here objected to any more side scenes. The prisoner had continually been allowed to in terrupt proceedings, and at this rate the trial would soon become a farce. Judge Cox settled the matter by saying: "I see no occasion Mr. Guiteau, for any explanation on your parr and the recess was then taken. Frank BarUett, of Chicago. wis called He knew Mr. anT Mia! a the Prieocer at Bcoville's summer residence in 187& "Ibis man never saw me but onoe," interruped Gui teau. The wife of Mr. Bart"ett testified in the same way. Howard Dunham, of Boston, testi fied to Guiteau's sanity. Scoville read the answer of President Arthur to the interrogatories. To the first and second questions, whether ho knew the prisoner and how often he had seen him, the president re plied that he knew him that he has seen him at least ten tunes, possibly twenty times. To the question whether he had ever conversed with him, he replied: "No, exeepUng tore turn the ordinary salutious of the day and once or twice in answer to his request to bo employed in the campaign as a speaker by the republican state committee, of which I was chairman." To the question what political service tae prisoner rendered the republican ..party during the presi dential campaign the answer was, "Nonef that I know of." The fourth question was whether or not anything in the prisoner's relations to himself, Gen. Grant Senator Conkling or anv other of tho republican party to furnish him with any ground for supposing that he would receives political position. The answer is The Prisanor-That is a matter of opinion. The last question was: "Did you ever Rive him any reason to think he could have any po litical or personal influence with you?" The answer is: "I never did." The Prisoner—He never had occasion to, Tho next witness was Kev. R. A. McArthur. pastor of Calvary Bapti3t church, New York As soon as hejwae sworn the prisoner remarked: "I know Dr. McArthur very elL He is a nice fellow very high toned in every way. I owe him f?3.» The witness began^to reUte how the prwoner introduced himself and wife tohim (the witness) at Uie close of the service one Sun day, and at the same time presented a letter ef dismissal from the First Baptist church, Chi cago. The witness told of the prisoner and wife be ing received into the fellowship of the church and of the wife later asking urgently for mon ey, handing him a promissory note °,f Prisoner for $100. About the 30th of April 1871, he was sum moned to appear before the advisory commit. tee to answer Uie charge of gross immortality There were three counts in the charge* First that he took money which his wife earned bv working in a hotel in tho country and which was remitted to him toassiatin supporting him.' and spent in dissipation with other women! The second count was that he had beencuiltv of frequent acts of violation of his marriaee vows. mu" Tho Prisoner (againbreaking in)—I on'y mar ried that womau on ten hours' notice, and that is reason enough why I should not live with her. Tho Witness—The third count was that as a result of these various acts of infideiity, be was suffering from a vile and loathsome disease The Prisoner—That's falsa The Witness—I recited these charges to the prisoner and he acknowledged the truth of every one of them. He stated that his excuse was that his wife was absent that nature's de mands had to be met and he could not resist the enticements of lewd women on the streets. The Distriot Attorney—We present this testimony because we want to show that what the defense calls insanity is nothing more than devilishness. Itwas with some difficulty that the applauso that greeted this remark could be quited. When order was restored the the witness rensnmed his testi mony, and said it never occurred to him for a moment that the prisoner was other than sane. When Uie cross-examination was closed, Uie pnsqner, looking up at the deck, announced that it was Uie cockcrow, and time to go home. 38? S1"? .""luired "How many more witnesses Itia that have you, Mr. Corkhill? I think it is an outrage on the public If you had to pay same of that money yourself, you would go Adjourned FRIDAY, DSC. 0. The testimony of to-day supported admir ably the theory of total depravity, and broke down mnch of the little left of Uie original in sanity theory. Friends of client and cred itors, whom he had swindled, ministers of the gospel, lawyers, doctors, business men, with one exception, they had the same story to tell —that ho was, so far as their observation went, a shrewd rogue rather than an insane inno cent At the opening Dr. MoArthnr, of New York, again took tho stand Guiteau broke la ex citedly, and shouted out: "It is purely in the nature of a confessional. McArthur is not an expert or a lawyer, and I object to his telling tho jury and tho American people facts which I told him years ago in regard to my history." The court ruled Uie evidence could be admitted as tending to show Uie general character of the prisoner. Corkhill—Did you ever see anything in the prisoner to indicate insanity? Answer—No sir, I never did Guiteau here broke into one of bis noisy har rangues. CoL Corkhill desired Uie court to restrain Uie pr.soner, when Guitean turned to him and said: ''You go slow Corkhill, you are spotted, and as soon as this business is over Uie president will remove you." W. S. Oadwell, the physician who treated L. W. Guiteau during bis last illness, never de tected any evidence of any mental unsoundness. George W. Plummer was then called. Guiteau immediately shouted: "I owe this man $20, but it has cost the government $21 0 to get him here Guiteau continually interrupted, and flnall the witness said to him: "It seems that your, close relations with Deity of late have corrupt ed your manners." The prisoner laughed heartily at this sally, and said: "Well, that ain't BO bad, Plummer, for a western man." "Did you ever see anything in bis conduct that indicated unsoundness of mind?" was the next question. ''No, sir," replied the witness noth ing whatever. He seemed to be a man of abil ity, vain and conceited but then he had'late from Now York city.' on his card, and we ex pected Uie rest" This convulsed the court Stephen English of New York, with whom Guitean had an office in the insurance business was aeked if he ever detected any sign of in sanity, and replied that on Uie contrary he was a remarkably clear-headed, shrewd lawyer. He completely outwitted Uie witness. Warren G. Brown, attorney at Law, of New York, was counsel for Mrs. Guiteau in obtaining a divorce from the prisoner. He has believed the latter perfectly sane. The witness was constantly interrupted by Uie prisoner. The witness con sidered Guiteau sharp, keen and rational Mr. McLean Shaw a counsellor of New York, detailed a portion of a conversation (terrible in import now, even then not lightly regarded) between the assassin and himself in 1872, wherein Guiteau announced his intentions of winning notoriety if he had to imitate Wilkes Booth and kill a public man to do is. The au dience buddered as Shaw calmly and distinctly related the incident and gave the portion of the conversation re ferred to, while Guitean grew so excited ibat he eould scarcely articulate Uie abusive epithets which he showered on Shaw. Dr. Walter Kemps tor of Uie Northern Wis consin insane hospital and one of the best known specialists on nervous and brain diseases and insanity in this country, who has been summoned as an expert, says that he fully be lieves that Guiteau is sane, and that his eeoen tricies in the court are simply acting. Mr. Henry Merely, of England, recently eaid to a New York reporter: "I have been greatly strnck by the immense size of the American stoies, especially the dry-goods shores. In this city, in Chicago end in all he large cities, there are dry-poods stores which ere simply immense. There is nothing like them in the old count y, I am impressed, too, by the great rush and ener gy of everybody. Everybody 6eems to get ahead." Mrs. William Helliwell and Mrs. Jacob Whi'sel of Winsted Lake, while crossing South lake, broke through the ice. Some boys pass ing on their way to school, seeing them strug gling in the water, eame to their assistance with a rope obtained a farmer's near by and sucoeeded in rescuing hem. CONGRESSIONAL PROCEEDINGS. MONDAY, DEO. 5. Senate.—The senate met at noon, Bills were Introduced for the appointment of a tariff com mission to place General Grant on Uie retired list of the army: by Mr. Sherman, a 3 per cent funding bill also a resolution regarding royalties on patents. All the senators were present except Jones of Nevada. Mr. Hill of Georgia had so far re covered from the late operation on his tongue that there does not seem to be much more inco herence his speech than usual. The senate looks lonesome with its great lights gone, and Uie facts of Conkling, Blaine and Carpenter are sadly missed Logan, Windom, Sherman, Kellogg, Anthony, Morrill and Ferry aro the oldest and most familiar figures just now. HOUSE—AU the republican caucus nominees including speaker Keifer, were elected and sworn in, as were all the members of the house except the two absentees. Mr. Keifer made a littie speech on assuming the chair, in which he suggested that the present is an auspicious time to enact laws to guard against recurrence or dangers to our institutions and insure tran quility at perilous times in Uie future. Objections were made to sev eral members taking Uie oath of office, but they were withdrawn One incident occurred which threw the house into convulsions of laughter. Mr. Moore (rep.) of Tennessee, is a new member, young, enthusiastic, deeply impressed with the pro found responsibilities of a representative in congress, and anxious to win fame and distinc tion. An old member would regard Mr. Moore as simply a fresh young man. When Chalmers, of Uie Mississippi "shoe sing" disttrrict, was called up to be sworn in, Mr. Moore objected Chalmers' seat is con tested and if the rules did not require the com mittee on elections to dispose of his case, the house would assuredly have been warranted in refusing him admittance. Mr. Moore, how ever, did not content himself with entering a simple objection which would have seived every purpose but he had to make a spread eagle speech, protesting in the name of justice, of law, and of humanity against Chalmers being administered the oath. When Mr. Moore, as to whose title to a seat no question exists, came forward to be sworn, Mr. Biagg of Wisconsin arose, and with great solemnity protested in tne name of law, of justice aud of Casey Young, Mr. Moore's democratic predecessor, against the swearing in ef Moore. The republicans and democrats alike shouted and screamed with laughter, and Mr. Moore, not at all abashed, joined in the fun. Finally, all the members against whose admission objection had been made were sworn in. This was all Uie business done on Monday. TUESDAY, DEO. 0. SENATE—Mr. Windom introduced two bills' the senate to-day at the request of Delegate Pettigrew. One was to create the state of Da kota, the other to establish Uie territory of nortbern Dakota. The bUl for the former de fines the boundaries as follows: Beginning at a point on the western boundarv line of Minnesota interseoted by the 6 de gree north latitude, thence southerly along the west boundary line of Minnesota to a point of intersection ot the Big 8ioux and Missouri rivers, thence up the Missouri and along the north boundary line if Nebraska to Uie 104tb meridian west longitude, thence north along said meridan to its intersection with Uie 46th degree of latitude, tnenoe io the place of be ginning. The rest of the present area is created into Uie territory. Mr. Ferry submitted a resolution instructing the commissioner of patents to report bv bill or otherwise such legislation as enall protect all innocent purchasers and users of anv device patented under the laws from payment of any royalty on any patented article abandoned to ™1«PU#£' '•"L8" &IA a AMiM madetwc 3 8 n« of the device. rSL I especially to drive wells, S S ™lJl JF** ot the west have suf S S S 6 through the sharp practice of dishonest agents. The same thing is being at tateJy i«» the matter orbarbed S *„5OU-8* "^Mr/. «*eH offered a resolution mS&SEL CamP,b?1,j olut,o Sto delegate elect from Utah Territory, entitled to be sworn in ona prima fame case. The resolution was under discussion, a point of order being raised against 2 & 2 0 S a message ZSSi&in ."**'t «*t th 6 m.,fl»o questionTO if delegate from CtahT was post- poned until to-morrow morning, when members proceeded to draw for seats A J? adopted for* committee to E E E S Hwaatfing.. on the death 3 untt S 9 8 *oJonrn3- until FrMay,V with Ui understanding that fur 2 0 ***e°»atU &esday,to 6 ton,ake WtteliM WEDNESAY, DEC. 7. SENATE-*-The senate members of the Joint •ommtttee to prepare a memorial on Uie late President Garfield were appointed. Bills were trodu oed for the admission of New Mexico the Union to establish Uie department of agriculture and commerce: to make trade dol lars legal tender for the allotment of lands in severalty to the Peoria and Miami Indians of Uie Indian territory granting pensions to sol diers of Uie Mexican, Creek, Seminole and Black Hawk war. Senator Sherman, speaking of David Davis' attitude in the senate organization, thinks the best course for tho republicans to pursue is to let matters staud as they are and wait a year, when they will hava a clear majority and can act without embarrassment Upon the conclusion of the morning business tho chair announced that Morrill's tariff com mission resolution was the next business in or der and awarded Uie floor to that senator, who declined to speak at this time, and Uie senate edjourned. HOUSE.—Not in session. THUBSDAY, DEO. 8. SENATE.—Mr. Morrill made along speech on his tariff commission bill, arguing from the protective stand-point Bills were introduced proviciicg that officers of the executive de- Eousmentarepresentatives art may have seats in the senate and of to make wives com petent witnesses in trials for bigamy in the ter ritories to exempt bank deposits from taxation giving 160 acres of land to tho widows or mi ner ohildren of Union soldiers who serv ed in the late war to retire United States judges at a certain age in relation to the presidential suc cession. A bill passed bestowing the franking privilege upon Mrs. Garfield The senate committees have been remodeled to some extent to give ex-Secretary Windom a place. Senator Edmunds had the chairman, ship of two committees—judiciary and foreign affairs. He givoe up the foreign affairs to Mr. Windom. There was a desire to have Mr. Windom on the finance committee, but it could not be well arranged that way, and he is satis fied to take foreign affairs, on which he has had large experience. HOUSE—Not in session EBIDAY.DBC. 9. SENAYE—Not in session. HOUSE—The speaker announced the ap pointment of the following committees: On Mileage—Messrs. Smith (Pa), Ryan, Paul, Cobb and McKenrie. On Death of President Garfield—Messrs. MoKinney, Pacheco, Belford, Wait, Forney, Dunn, Martin, Davidson (Fla.), Stephens. Can non, Ortb. Kasson, Anderson, Carlisle, Gib son, Dingley, MoLand. Harris, (Mass.), Kerr, Dunnell, Hooker, Ford Valentine, Hall, Hill (N. Y), Vance, George, O'NeiL Chase, Atkin, Petti bone, Miles, Joyce, Tucker, Wilson and Wil liams (Wis). The house then adjourned until Tuesd v, when the introduction of bills will be allowed as on Monday. ii Sharp Work of a Mammoth Monopoly. The standard oU company monopoly is having a curious and interesting contest in Columbus, Miss. Three years ago the merchants at that place asked the company to vary the prices according to the market, and, upon being refused, combined togeth er and bought oil from other quarters. The Standard company then lowered its rates, and finally got a local agent into the field to undersell the merchant's at retail, but still the latter refused to surrender, and to this day have handled none of tho company's goods. Finally Uie monopoly has put a great quantity of the groceries into the town to be sold at cost, and a small dealer who had built np a petty business in chipping dried beef lor his customers had to see the great company set up its op position sheer next door tojpunish him tor refusing to sell its oil. o» Rev. Dr. Francis A. Shrop, of Jackson, Tenn., who is announced as the successor of Bishop Gallagher, is a scholar of de cided ability and culture, and stands in the firrt rank of Southern clergymen. He is a graduate of West Point Military Acad emy, and during the late war was chief of artillery, with the rank of brigadier gen eral, on the staff of General Joseph E. Johnston. The Worthington Advance FREE THOUGHT, FREE SPEECH AND kTJEE PBEH8. VOLUME X. WORTHINGTON, NOBLES COUNTY, MINNESOTA, THURSDAY, DECEMBER 15, 1881. NUMBER 16. THE PRESIDENT'S MESSAGE. First Message of President Ches ter A. Arthurto the Congress of the United States. It Opens With a reference to the National Loss and a Tri bute to Garfield. Comprehensive Review of the Operations of the Various Departments of the Government Suggestions and Recommenda tions Upon a Large Va riety of Subjects. THK IiA-TE PBESIDENT A FEELINQ TBXBUTB. To the Senate and House of Representatives of the United States: An appalling calamity has befallen tho American people c.nce there chosen representatives last met in the halls where yen are now assembled We might else recall with unallayed oontent the prosperity with which throughout the year the nation has been blessed Its harvests have been plenteous, its varied industries have thriven, the health of its people has been preserved It has maintained with foreign governments the un disturbed relations of peace. For these manifestations of his favor we owe him who holds our destiny in his hands the tribute of our grateful devotion. To that mysterious exercise of will which has taken from us the loved and illustrious citizen who was but lately the head of the nation, we bow in sorrow and submission. The memory of his exalted character, or his noble achieve ments and of bis patriotic life will be treasured forever as a sacred possession of the whele people. The announcement of his death dr«w from foreign governments and peoples tributes of sympathy and sorrow which history will re cord as signal tokens of the friendship of na tions and the federation of mankind JTOKEIUX E A I O N 8 MAINLY PEACEFUL. The feeling of good will between our own government and that of Great Britain was never more marked than at present In recog nition of this pleasing fact, I directed, on Uie occasion of the lata centennial celebration at Yorktown, that a ealuto bo given the British flag. Aside from the correspondence, to which I shall refer hereafter, in relation to the pro posed canal across the isthmus of Panama, little has occurred worth* of mention in the diplomatic relations of the country. Early in the yea? the Fortune bay claims were satisfactor ily settled by the British government paying in the full the sum of £15,000, most of which has already been distributed. As the terms of settlement included compensation for injuries suffered by our fishermen at Ashell bay. there has been retained from the gross award a sum which is deemed adequate for these claims. The participation of Americans in the exhibi tions at Melbourne and Sydney will be approv ingly mentioned in the reports of the two ex hibitions soon to be presented to congress. They will disclose the readiness of our couutry to make successful competition in distant fields of enterprise. Negotiations for an internation al copyright convention are in hopeful prog ress. The surrender of Sitting Bull and his force upon the Canadian frontier baa allayed all apprehension, although bodies of British Indians still cross the border in quest of sustenance Cnon this subject a cor respondence has been opened, which promises an adequate understanding. Ou troops have orders to avoid, Meanwhile, all collisions with these Indiana, flfca presonce at Yorktown of representatives «T the republic of France, descendants sf Istfajette and his gallant com patriots, who V33»«a* allies in the revolution, has served to strengthen the spirit of good will which has always existed between the two na tions. You wili ho tarnished with the proceed ings of THE BIMETAX.IC CONFEBEKCE, held during the summer at the city of Paria No record was reached, but a valuable inter change of views was had, and the conference will next year be renewed At the electrical exhibition and congress, also held at Paris, the country was creditably represented by eminent specialists, who, in the absence of an appro priation, generally lent their efficient aid at the instance of the state department While our exhibitions in this almost distinctively Amer can field of achievement have won several awards, I recommend that congress provide for tne repayment of the personal expenses in curred in the public interest bv the honorary commissioners and delegates. No new questions respecting Uie status of our naturalized citizens in Germany have arisen during the year, and causes of com plaint, especially in Alsace and Lorraine, have practically ceased, through the liberal action ef the Imperia government In accepting onr often expressed views en the subject The application of the treaty of 1868 to the lately acquired Rhenish province has received very earnest attention, aud a definite and lasting agreement on this point is confidently expected. The participation of the descend ants of Baron Von Steuben in the Yorktown festivities and their subsequent reception by their American kinsmen strikingly evinced the good will which unite German people and our own. Our intercourse with Spain has been friendly. An agreement concluded in Feb uary last fixes a term for the labors for the Spanish and American claims commission. The Spanish government has been requested to pay the late awards of the commission, and will, it is believed, aooedo to the request as promptly as on a former occasion.By recent leg islation onerous fines have been imposed upon American shipping in Spanish and colonial ports for slight irregularities in manifest One case of hardship is specially worthy of atten tion. The bark Mazonica, oound for Japan, entered Manilla in distress and is there sought to be confiscated under Uie Spanish revenue laws for an alleged shortage in her transhipped cargo. Though efforts for her relief have thus far proved unavailing, it is expected that the whole matter will be adjusted in a friendly manner. SYMPATHY WITH BUSSIA. The resolutions of condolence on the assas sination of the Czar Alexander were appropri ately communicated to the Russian govern ment, which in turn has expressed its sympa thy in our late bereavement It is desirable that our cordial relations with Russia should be strengthened by proper engagements assur ing to peaceable American citizens who visit the empire the consideration which is due to them as citizens of a friendly state. This is especially needful with respect to American Israelites, whose classification with the Baltic Hebrews has evoked energetio remonstrances from this government A consular agreement with Italy has been sanctioned and proclaimed, which puts at rest conflict of jurisdiction in the case of crimes on shipboard. Several im portant arrBEjiaftoirAii OOKFEBEKCES have been held in Italy during Uie year. At the geographical oongress of Venice, the Boni face congress of Milan, and at the Nice con gress of Turin, this country was represented by delegates of branches of the public service, or by private citizens duly accredited in an honorary capacity. It is hoped that congress will give euob prominence to their participa tion as they may seem to deserve. The abolition of all discriminating duties against Dutch colonial productions of Uie Dutch East Indies aa are imported there from HoUand has been already consid ered by congress. I trust that at Uie present session the matter will be favorably concluded. The insecurity of life and property in many parts of Turkey las given rise to correspond ence with the porte relating particularly to the bettor protection bf American missionaries in the empire. Thji condemned murderer of the eminent nassionary, Dr. Justin W. Parsons, has not yet been executed, although the gov ernment has repeatedly demanded that ex emplary justice |ie done. THE SWISS GOVESKMENT has solicited the1 good officos of our diplomatic and consukr agents for tho protection of its citizens in Dountries where ii is not itself rep resented This request has within proper limits beengranted. Oar agents in Switzer land have teen instructed to protest against the conduct of the authorities of certain com munes in fermittUg the emigration to this country of criminal and other objectionable per-sons. several such persons, through the co-operation or the commis sioners of emigration at New York, have been sent back by th» steamers which brought them. A continuance of this oourse may prove a mro effective remedy than diplomats remonstrance. Trea ties of oanmerce and navigation and for the ieguktion cf consular privileges have been eoncluled with Roumania and Per via since theirjfdmission into the family of European rrt(ma.v As is natural with con tiguous sta-'es which have like institutions and like afris of advancement and develop ment, thofriendahip of the United States and Mexioo has been consistently maintained. Tho govern mont has lost no occasion of en couraging the Mexican government to a beneficial realization of the mutual ad vantajos which will "result for more intimate commercial intercourse and from tho openiug of the rich interior of Meico to railway enterprise. I deem it im- Jawleesnesstunfortunately mr.aut tha means be provided to restrain the so common, and to suppress the forays of the reservation Indians or either 6ide of tin, Rio Grande. The ceigh b)ring states of Central America have pre served internal peace, and their outward rela tions towards the United States have been those of intimate friendship. These are en couraging signs of their growing disposition to subordinate their local interests to those which are common to them by reason of their geographical relations. The boundary dispute between Guatemala and Mexico has furnished this government Uie op portunity to exercise its good offices by pre venting a rupturo between those states and for procuring a peaceful solution of the ques tion. Tho Casta Rica government lately formed an engagement with Colombia for settling by arbitration the boundary question between thoeo countries providing*that the post of ar bitrante be offered successively to the king of the Belgians, the king of Spain and the president of the Argentine confederation. The king of the Belgians has declined to act, but I am not as yet advised of the action of the king of Spain. As we have certain interests in Uie disputed territory which aro protected by treaty engagement with one of the parties, it is important that the arbitration should not with out our consent affect our rights, and this gov ernment has accordingly thought proper to make its views known to the parties to Uie agreement, as the quostions growing out of tho proposed INTER-OCEANIC WATERWAY aeofis the Isthmus of Panama aro of great na tional importance. This government has not been unmindful of Uie solemn obligations im posed upon by its compact of 1846 with Colombia as tho independent and sovereign mistress of tho territory crossed by the canal, and sought to reader them effective bv fresh engagements with the Colombian republic, looking to their practical execution. The ne gotiations to tbiB end after they had reached what appeared to be a mutually satisfactory solution here, were met in Colombia by a disavowal of the powers which its envoy had assured aad by a proposal for ne gotiation on a modified basis. Meanwhile this government learned that Colombia had pro posed to the European powers to join in a guarantee of the. neutrality of tho proposed Panama canal, a guaraMteo which wouldbe in direct contravention of our obligation as the sole guarantee of tho integrity of Columbian Territory, aud of the neutrality of tho canal itself. My lamented predecessor felt it his duty to place before the European powers the reasons which make the prior guarantee of tho United States indispensable and for which the interjection of any foreign guarantee might be regarded as a superfluous and un friendly act foreseeing the probable reliance of the British gsttrnment on the provisions of the Clayton-SsiwBr treaty of 1850, as afford ing room far A gis— in the guarantees which tho United Elate! convenanted with Colombia four years before, I have cot hesitated to sup plement the action of my predecessor by pro posing to her majesty's government the modifi cation of that instrument and the abrogation of such clauses thereof as do not conflict with obligations of tho United States toward Colom bia or with the vital needs of the two friendly parties to the compact coax AND rsuu. This government sees with great concern tho continuance of the hostilo relations be tween Chili and Peru. An early peace between these republics is much to be desired, not only that they may themselves bo spared further misery and bloodshed, but because their con tinued antagonism threatens consequences which are, in my judgment, detrimental to the interests of all the republican governments on this continent and calculated to destroy the beat elements of our free and peaoeful civiliza tion. As in the present excited condition of Eopnlar feeling in these countries there as been a serious misapprehension of the po sition of the United States, and as separate diplomatic intercouue with each through inde pendent ministers is at the same time a serious subject, owing to the want of prompt recipro cal communication, to temporary misunder standing, I have deemed it judicious at the present time to send a specfal envoy, accred ited to all and each of them, and furnished with general instructions which will enable him to bring these powers into friendly rela tions. VENEZUELA CLAIMS. The government of Venezuela maintains its attitude of warm friendship, and continues with great regularity its payment of the month ly quota of tho diplomatic debt Without sug gesting the direction in which congress should act, I ask attention to pending questions affect ing the destination of the sums thus far re ceived. The relations botween Venezuela and France, growing out of the same debt, have been for sometime past in an unsatisfactor state, and this government, as the neighbor and one of tho largest creditors of Venezuela, has interposed itself with the French govern ment, with the view of produoing a friendly and honorable adjustment COMMERCIAL INTERESTS WITH BRAZIL. I regret that the commercial interest between tbe United States and Brazil, from which great advantages were hoped a year ago, have suf fered from withdrawal of American lines of communication betweon Brazilian ports and our own. Through the efforts of our minister resident at Buenos Ayres en 1 tho United States minis tor at Santiago a treaty has been concluded be tween tbo Argentine hepublic aud Chili dispos ing of the long pending Patagonian boundary question. It is a matter of congratulation that our government has been afforded the oppor tunity of successfully exerting it* good influ ence for the prevention of disagreements be tween the republics of the American continent TBEATTES WITH CHINA. I am glad to inform yon that tho treaties lately negotiated with China have been duly ratified on both sides and the exchange made at Pokin. Legislation is necessary to call its provisions into effect The prompt and friendly manner in whioh the Chinese govern ment, at tbe request of the United States, con ceded tbe modification of the treaties should secure careful regard for the interests and susceptibilities of that government in the en actment or any laws relating to Chinese immi ration. These classes of tho treaties which orbid the participation of citizons or vessels of the United States in tbe opium trade will doubUess receive vonr approval, and they will attest the sincere interest of our people and government in tbe commendable efforts of the Chinese government to put a stop to this de moralizing and destructive traffic. In relation both to China and Japan, some changes are desirable in our present system of consular Jurisdiction. I hope, at some future time, to lay before you a scheme for its im provement in the entire east RELATIONS WITH JAPAN. The intimacy between our country and Japan, the most advanced of Uie eastern nations, con tinues to be cordial. I am advised that tbe emperor contemplates the establishment of a constitutional government, and that he has al ready gammoned a parliamentary oongress for the purpose of effecting the change. Such a remarkable sten toward complete assimilation with our western systam cannot fail to bring Japan to closer and more beneficial relation, ship with ourselves as tbe chief pacific power. A question has arisen in relation to the exor cise in that country of judicial functions car ried on by our minister and consuls. Tbe indictments, tiial and conviction in the eonsn lar court at Yokohama of John Eons, a mer- chant seaman oh board an American vessel, have made it necessary for the government to institute a careful examination of the nature and methods of this jurisdiction. It appears that Ross was regularly shipped under protection or the United State's, but was by birth a British subject My predecessor felt it his duty tp take the position that by his service as a regular shipped seaman on board an American merchant vessel Rosa was subject to tho laws of the service and to tbo juris diction of the United States consulate author ties. I renew the recommendation which has been heretofore urged by tbe executive upon the at tention of congress. After the reduction of such amount as may be found due to America, tbe balance of the indemnity found heretofore obtained from China and Japan, which are now to be found in the hands of the state de partment, be returned to Uie governments of those countries. HAWAIIAN ISLANDS. The king of Hawaii, in the oourse of his homeward return after a journey around the world, has lately visited this country. While onr relations with that kingdom are friendly, this government has viewed with concern the efforts to seek replenishment of the diminish ing population of the islands from outward sources to a degree which may impair Uie na tivo sovereignty and independence in whioh the United States was among Uie first to testify a lively interest UNIMPAIRED AMNESTY. Relations of unimpaired amnesty have been maintained throughout the year with tbe re spective governments of Austria, Hungary, Belgium, Denmark, Hayti, Paraguay and Uru guay, Portugal, and Sweden aud Norway, and this may also be said of Greece and Equador, although our relations with those states have for some years been severed by tbe with drawal of appropriations for diplomatic rep resentatives at Athens andQuito. It seems ex pedient to restore those missions, even on a re iuced scale, and 1 decidedly recommend such a conrso with respect to Equador, whioh is Ukely within tbe near fnture to plav an im portant part among Uie nations of the south era Pacific. TNTEBNATIONAL BED CROSS WORK. At its last extra session the senate called for the text of tbe Geneva convention for the relief of the wounded in war. 1 trnst that this action foreshadows such interest in tbe subject cs will result in the admission to that humane and commendable engagement INTERNATIONAL RULES OF THE BOAD. I invite your attention to the propriety of adopting the new code of international roles for the prevention of collisions in the high seas, and of conforming the domestic legislation ot the United States thereto, so that no confusion may arise from the application of conflicting rules in tbe case of vessels of different nationalities meeting its tidal waters. These international rules differ but slightly from our own. They have been adopted by the navv department for the gov ernance ot tbe war ships of the United States on the high seas and in foreign waters, and in disseminating the rules and in acquainting tbo shipmasters with the option of eonforming to them within Uie jurisdictional waters of the United States, they are now very goueraliy known and obeyed tNTEHKATlOKAIi. FOREIGN COMXEBCIAL REPORTS. The state department still continues to pub lien to tho country the trade and manufactur ing reports received from its officers abroad The success of this course Warrants its con tinuance and such appropriation as may be re mured to meet tho rapidly increasing demand for these publications with special reference to the Atlanta cotton exposition, tbe October number of tbe reports was devoted to a collec tion of papers on the cotton goods trade of the world. THE INTERNATIONAL CONFERENCE for which, in 1878, congress mode provision, assembled in this city in July last, and its sessions were prolonged until March, although it reached no specific corcluotona affecting the future action of the participant powers. The interchange of views proved to be most valu able. The full protocols of the sessions have been already presented to the tenata. INTERNATIONAL SANITARY REGULATIONS. As pertinent to this general subject, I will call your attention to the operations of the national board of health, established bv aet of congress, approved March 3, 1879. Its sphere of duty was enlarged by the act of June 22. in the same year. By the last named act the board was required to investigate such measures as might be deemed necessary for preventing the introduction of contagious or infectious diseases from foreign couutnes into the United States br from one State into another, The execution of the rules and regulations prepared by the board and ap proved by my predecessor has done much to arrest the progress of epidemic disease, and has thus rendered substantial service to the nation. THE INTERNATIONAL SANITARY CONFERENCE, to which I have referred, adopted the form of a bill of health to be used by all vessels seek ing to enter the ports of the countries whose represetatives participated in its deliberations. Tnis form has been preserved by the national board of health, and incorporated with its rules and regulations, which have been ap proved by main pursuance of law. The health of the people is one of supreme importance, and all measnres looking to tbeir preservation, against the spread of contagions diseases, ana to the increase of onr sanitary knowledge for such purposes, deserve Uie attention of con gress FINANCIAL. THE TREASURY. The report of the secretary of the treasury represents in detail a highly satisfactory ex hibit of the state of the finances, and the con dition of various branches of the publie ser vice administered by that department Tbe ordinary revenues from all sources for tbe fiscal year ending June 10, 1881 were: From customs $198,159,676 02 Internal revenue 135.2C4.3g5 51 From public land* 2,221,863 17 From tax on circulation and de posits of national banks 8,116,115 72 From repayment of interest by Pacific railway companies 810,633 80 From sinking fund for Pacifle railway companies 805,180 54 From castom fees, fines, penal tie?,ete 1.222.514 86 From fees on consular letter pat entsand lands 32,214,984 99 From proceeds of sales of gov ernment property 262,174 00 From profits on coinage 3,468,485 61 From revenues of tbe District of Columbia .' 2,016.199 £3 From miscellaneous sources 6,268,80134 Total ordinary receipts $360,782,297 CO Tbe ordinary expenditures for the same period were: For civil expenses $17,941,177 19 For foreign intercourse 1.093.954 92 For Indians 6,514,101 09 For prisoners 5,005,027 96 For the military establishment, including river and harbor im provement and arsenals 40,466,460 06 For the naval establishment, In cluding vessels and machinery in improvement at tbe navy yards 15,686,671 66 For miscellaneous expenditures, including publie buildings, light house, and collecting the rev enue 41.837.280 67 For expenditure* en account ot the District ot Columbia 3.543.912 OS Forlnterest on the publie debt.. 82,508,741 18 For premium on bonds purchased 1,612.263 78 Total ordinary expenditure«..$26O.712.837.50 Leaving a surplus of revenue of $100,060, 404.08, which was applied as follows: To the redemption of bonds for the Kinking fund .... $74,371 20 Fractional eurreucy for stating fund 109,001 03 Loans of February, 1661 7,418.000 00 10-408 of 1864 2,016.150 00 5-20sof 1862 183.000 00 5-20scf 1864 340,000 00 5-20sof 1865 873,000 00 Consolsof 1865 1,431,500 00 Consols of 1867 959,150 00 Consolsof 186S 387.400 00 Loan indemnity stock 10,000 00 Old demand compound Interest and other notes 18,330 00 And to this and to tbo increase of oath in the treasury 14,637.023 93 Total $100,069,404 99 The requirements ef tbe sinking fund for the vcar amounted to $90,786,064.02, which sum* includes a balance of $19,817,128.78 not provided for during the previous fiscal year. The sum of $74,480,201 was applied to this fund, which left a deficit of $16,205, 873.47. The increase of Uie revenue for 1881 over that of Uie previous year was $19, 352,901.10. It is estimated that the receipts during the present fiscal year will reach $400. 000.000, and expenditures $270,000,000, leaving a surplus of $130,000,000 SILVER. In pursuance of the policy of the govern ment to maintain silver at or near the gold standard it was made receivable for all cus toms, taxes and public duea About $00, 000,000 of standard silver dollars are now outstanding. They formed an unnecessary addition to Uie paper currency, as the current amount which, mar readily be supplied by the national banks Is shown to be sufficient In ac cordance with Uie aet of February 28, 1878, tne treashiy department has monthly caused at least $2,000,000 in value of silver bullion to be coined iuto standard dollars. One hundred and two millions of these dollars have been already coined, while only about $34, 000,000 are in circulation. For the reasons which he specifies, I concur in the secretary's recommendation that the provision for coinage of the specified amount each month be re pealed, aud that hereafter only so much be coined as shall be necessary to supply the de mand. GOLD CERTIFICATES. The secretary advises that Uie issue of gold certificates should not for the present be re sumed and enggeete that the national banks may be properly forbiddeu by law to retire their cur rency, except on reasonable notice of their in tention to do so. Such legislation would seem to be justified by the reconstruction of certain banks on the occasion referred to, in the secretary's report Of the $15,000,000 of fractional currency still outstand ing only about $80,000 has been ledeemed the past year. The suggestion that this amount may* properly be dropped from future statements of the public debt seems worthy of approval. So also does the sugges tion of the secretary as to the advisability of relieving the ealendar of the United States courts in tbe southern district of New York by the transfer to another tribunal of the numer ous suits there pending against collectors. THE REVENUE from customs for the. past fiscal year was $198,159,676.02 an Increase of $11,637, 011.42 over that of tbe preceding year $138,098,562.39 of this amount was col lected at the port of New York, leaving $50, 251,523.63 as the amount collected at all tho other ports of the country. Of this sum $47,977,137.63 was collected on sugar and molasses, sp^v.^ss,024.78 on wool and manu factures, $2,462,534.34 on iron and steel aud manufactures thereof, $19,038,605.81 on manufactures of silk, $10,825,115.21 on manufactures of cotton. $6,409, 643.04 on wines and spirits, making the total revenue from these sources $133,058,720 81. The expenses of collec tion for the past year have been $0,419,345 20, an increase over the preceding year of $387, 410.04. Notwithstanding the increase in rev enue from customs over the previous year the gross value of the imports, including free goods decreased over $25,000,000. The marked decrease was in the value of unmanu factured wool $14,023,682. and in that of eerapandpig iron$12,8l0,07l. The value of imports on sugar, on the other hand, showed an increase of $7,457,474, of steel raila $4, 345,521, of bar iron $2,154,204, and of steel in barn, etc., $020,046. Compared with the previous year, there was an increase of merchandise and a uecreoea cf $60,738,688 in the value of imports. The annual average increase of imports of mer chandise over exports thereof, for ten roars previous to June 30, 1873, was $1,488,922, but for the lost six years there has been au ex cess of exports over imports of merchandise of $1,180,668,103, an* annual aver age of $100,778,017. The specie value of Uie exports of domestic merchandise was $370,616,473 in 1870 and $883,925,947 in 1881, an increase of $307, 309,474, or 135 per cent. The value of im ports was $435,958,408 in 1870 and $042. 664.628 in 1881, an increase of $200,706, 220, or 47 per eent during each year. From 1862 to 1879. inclusive, the exports of specie exceeded tho imports. The largest ex cess of such exports over imports was reached during tbe year 1864, when it amounted to fune 92,204,929, but during the vear ending 30, 1880, tbe imports of coin and bull ion exceeded the exports by $75,891,391, and during the last fiscal vear the excess of im ports over exports was $91,168,050 REFUNDING. In tho last annual report of the secretary of Uie treasury tbe attention of congress was called to the fact that $469,651,050 in 5 per oen tum bonds and $203,573,750 in 6 per centum bonds were to become redeemable during the year, and congress was asked to authorize the refunding of these bonds at a lower rate of in terest The bill for such refunding having failed to become a law, the secretary of the treasury in April last notified the holders of tbe $195,690,400 6 per eent bonds then out standing, that the bonds would be paid at par on the first day of July follow ing, or that they might be continued at the pleasure of the government, to bear in terest at the rate of 3L, per centum per an num. Under this notice $175,055,150 of the 6 per centum bonds were continued at the lower rate, and $17,032,250 redeemed. In the month of May alike notice was given re specting the redemption or continuance of the $439,841,350 of 5 per cent, bonds then out standing of these $401,504,900 were con tinued at 3*2 per centum per annum, aud $38, 336,450 redeemed. The 6 per cent bonds of the loan of February 8, 1861 and of the -Oregon war debt amounting together to $14, 121,500 having matured duriug the year the secretary of the treasury gave notice of his in tention to redeem the same, and such as have been presented have been paid from the sur plus revenue. There have been also redeemed at par $16,179,100 of the 3 per centum continued bonds, making a total of bonds re deemed or which have ceased to bear interest during Uie year of $123,969,650 THE PUBLIC DEBX The reduction of tbe annual interest on the public debt through these transections is aa follows: By reduction of interest to SH per oent $10,473,968 27 By redemptionof bonds 6,352.340 00 Total $16,826,292 27 Th* 3*2 per centum bonds being payable at the pleasure of the government are available for investment of surplus revenue without the payment of premiums. Unless these bonds ear be ended at a much lower rate of interest that they now bear, I agree with tho secretary of the treasury that no legislation respecting them is desirable. REDUCTION OF BEVENUB It is a matter for congratulation that the busi ness of the country has been so prosperous dur ing the past year as to yield by taxation a large surplus of incoms to tbo government If the revenue laws remain unchanged, this surplus must, year by year, increase, on account of tbe reducUon of the public debt and its burden of interest and because of the rapid increase of our population. In I860, just prior to tbo in stitution of our internal revenue system, onr population but slightly exceeded 30. 000,000. By the census of 1880 i is now found to exceed 60,000,000. It is estimated that even if the annual receipts and expenditures should continue aa at present, the entire debt could be paid in ten years. In view, however, of the heavy load of taxation which onr people have already borne, we may well consider whether it is not the part of wis dom to reduoa the revenues, even if we delay a littie the payment of the debt It seems to me that the time has arrived when Uie people may justly demand some relief from their present enormous burden and that by due economy in tbe various branches of the public service this may readily be afforded 1 therefore concur with the sec retary in recommending the abolition of all in ternal revenue taxes except those upon tobac coin its various forms, and upon distilled spirits aud fermented liquors, ana except also the special tax upon the manufacturers of and dealers in such articles. The retention of the latter tax is desirable as affording the officers of the government a proper supervision of these articles for the prevention of frauds. I agree with Uie secretary of the treasury that the law Imposing a stamp tax on matches, proprietary articles, playing cards and drafts may with propriety be re pealed, and tbe law also by which backs and bankers are assessed upon tbeir capital and deposits. There seems to be a general senti ment in favor of this course, aud in Uie present condition of our revenues the tax npon deposits is especially unjust It wa* never imposed in this couutry uutil it was demanded by the necessities of war, and never exacted, I be lieve, in any other country even in its greatest exigencios. Bankers are required to secure their circulation by pledging, with Uie treasurer of the United States, bonds of tbe general government The interest on these bonds, which at the time was 6 per cent, is now in most instances 3Lj per cent, and besides, the entire circulation was originally limited by law, and no increase was allowable when the existing banks bad practically a monopoly of the busineaa There was the suggestion that for the franchise to the favoring grantees the government might very properly exact a tax on circulation. But for years the system has been free and the amount of circulation regnlated by tbo pnblia demand. The retention of this tax has beau suggested as a means of reimbursing the gov ernment for the expense of printing and fur nishing the circulating notes. If the tax should be repealed, it would certainly seem proper to require the national banks to pay tbe amount of such expense to Uie controller of the cur rency. TAX ON LIQCOB AND TOBACCO. It is perhaps doubtful whether the imme diate reduction of the scale of taxation upon liquors aud tobacco is advisable, especially in view of tbe drain npon the treasury, which muf attend the payment of arrears of pan- HOMES IN THE WEST. Persons looking westward for homes can procure full information concern ing the GAKDEN SPOT of IOWA and Minnesota, bj subscribing for the Wortbington ADVANCE, published at Worthington, Minnesota. Send S2 for one year, SI for six months, and 50 sents for three months, to ADVANCE. Worthington, Nobles Co.. Minnesota. wens. A comparison, nowever, or tne amount of taxes collected under the varying rates of taxation which have at different times prevailed, suggests the intimation that some reduction may soon be made without crippling the revenue. TARIFF REVISION. The tariff laws al»o need revising, but that a dne regard may bo paid to the conflict mg in terests of our citizens, important changes should be made with caution. If a carefn! re vision cannot be made at tin- session a commis sion such ii-w as la.iul.v- approved by the -:e:i ate and is now recommended by the secretary of tho treasury would doubtless liglit-'i the la bors of cougresu whenever the subject shall be brought to its consideration. ARM A N NAVY THK WAR DEPARTMENT. The accompanying report of the secretary of war will make known the operations of that department for the past year. He suggests measures for promoting the efficiency of the army by adding to tho number of officers, and recommends the legislation necessary to in crease the number of enlisted men to 30,000, to the maximum al lowed by law. This ho deems nccos°ary to preserve the peaco and suppress disorders and marauding in new settlements, to protect settlers and their property against ludians, against the encroachments of intruders and to enable immigrants to establish hemes in th.9 most remote parts of our country. Tho army is now necessarily scattered over such a vast extent of territory that whenever an outbreak occurs reinforcements must bo hurried from many quarters over a great distance and at heavy cost for transportation of men, horses, wauocs ai.d supplies. I concur in the recommendations cf the secretary for increasing tbo army to the strength of 30,000 enlisted men. It appears bv the secretary's report that In the absence of disturbances ou the frontier tiie troops Lave been actively employed in collecting in Jiaos hitherto hostile and locating them on their proper reservations that kitting "Bull and his adherents are now prieonersat Fort Randall that the Utes have been moved to their reser vation in Utah. During the rocent OUTBREAK or THE APACHES it was necossarj to reinforce the garrisons in Arizona by troops withdrawn from New Mexico. Some Apaches are now held prison era for trial, while some have escaped, and the majority of the tribe are now oa the reserva tion. There is need of legislation to prevent intrusion upon the lands est a art for the In dians. A large military force at great expense is now required to patrol the boundary liue between Kansas aud tho Indian Territory. The only punishment that can at present be inflicted is tbe forcible removal of the intruder and tho imposition of a pecuniary, fine which in most cases it is impossible to collect There should he a penalty by imprisonment in such cases. The separate organiz?.ticn of the sig nal service ie urged by the secretary of war, and a full statement of the advautsges o? such permanent organization is presented in the re port of the ebiof 6ignal officer. A de tail of the usual work performed by the signal corps and tho weather bureau is also given in that report I ask attention to the statement of the secretary of war regarding the requisitions frequently made by tho Indian bureau upon the *ubsiste3C0 department of the army, for tbe casual support of bands or tribe? of In dians for which appropriations are exhausted. The war department should not be left by rea son of inadequate provisions, for tho Indian bureau to contribute for the main tenance of tho Indians. The report of tbe chief of engineers furnishes a detailed account of the operations for the im provement of rivers and harbors. I rccom- Coutinued ou fourth page. The Railroads and the Farmers. Col. W. F. Vilas, the famous Wisconsin orator, delivered the Annual a dress before the Minnesota State Fair, and choie for his theme the "Railroads and the Farmers," and tried to point out Ihtir reciprocity of interest. A few extracts fr?iu his admira ble speech will interest the reader: "Before railroads were devised, there was no extensive freight communication but by wafer. And tb.it ras valueless un lena conveniently accessible. From this the agriculture of past rg-s gathered around the seas and lakes, or lined the river's margin. It girt the Med iterranean, and irnde famous the valley of the Nile. The unwatered world of the in terior was left to the wnndering nw.oT.id or the foreet barbarian. It was the unknown region full of msterious terrors. The great Hcrcynian wood was the home of beasts, brute and human, the litter the ever impending peril, and finally the des troyer of the civilization of the world. The reserve corps of barbarism by baok on the plains of Ru«sia and Tartary, which nourished the fierce savages who could live ou equine flesh and oarouf* ou the mUk of mares. So, too, water communication was slow and tedions, even when accessib'e.' That is tree, especially of inland naviga tion. It is weeks by water from St. Paul to New York, though the aid of steam be invoked and northern climes of-navigation is available for but half the y-ar. Tour magnificent wheat fields wonld mo'-tiy be unbroken, fanners of Minnesota, had not the invention and enterprise of other men, stimulated by your demands, laid the dou ble-lined highway by which the freight ear bears your precious berry to the sea. and tbe Indian would still be master of the Territories of the West. Tour lands derive their value, your in dustry its reward, your homes the luxuries and many of the comforts they exhibit, from Uie well-abused railroads of the conti nent. But while we do them justice, let us not forget there are doubtless many faults to be corrected and abuses to be reformed in tne administration of these highways. Cor porate powers and corporate values have advanced with a more rapid step than the invention of our statesmen and law-makers. Tbe agency of the corporation is compara tively modern, and, like the np.n'-y of steam, is a mighty power. Unless subdued by the proper applianoes of law sufficient tc control it, we are liable to disasters as ru inous to our welfare aa the accidents which sometimes befall the train arc destructive of life. But I must not protract this weary' hour to discuss this problem foreign to my ecb jcet. Important as it is, we need not e..r it. The railroad, rightiy used, is the friend of the farmer and Uie whole people. It is the paramount interest of its owners thut it should so remain. They dare not make it an enemy, and when we reflect that a single invention—the steel rail—has reduced the freight tariff forty per centum, we may trust somewhat to time and genius to re lieve the inconveniences, and continue to enjoy its blessings with composure." A stalker Celt Way for Magic. From the la* Francis?* Post. Eeverybody BRS read the marvelous stories of traveling magieiau6 mystifying the people by exhibiting their skill in pub lic places. Yesterday Baron Seeman wtis riding en a California street dummy, and biking in his fellow-passengers with the usual blandly unconscious eye cf the pren tidigitateur, when he suddenly turned and said to a rough-looking vonag man on the same aide: 'Pardon, my friend, bat 3 on will loss ytrar watch—Uie ehain is bang ieg-" "Hain't got no watch," gro-vltd the youth. "Excuse n.e, but you are uui.-tavicn. Look there!" The hoodlum, who unfor tunately had been at the Uie theatre the eveniag befoie and who had just recognized the magician's face, took hold the chain, putted 4 wateh oat of bis pocket, stared at it a moment, and then said: "Why. to to be sure how d—d carelet-a of me! 'Bliged to you, baron," and stepv-in^' briskly from the dummy ran np a neurhhoring al ley, leaving the baron staring after his (•tern-winder with a paraljzed expression. No arrests. —i Work will soon bo eomnvneed on a mag niGeant htei on Crystal bay, LAVC Sik:neUnka which will be tbe finefetinthfl ronntty for Us size. It will cost in the u6igbborb*o-J $'J50,030, and viJl eccommedeU 2,00** por rnaceut ests. It will be fiil^1 wKb every conveniiLce that cen bo oceired by tl.- most exacting demands of tbe public. The b. at night will be lighted by e-cctiK-itv in the vtciu ity of the ho'el. As Mr. J. J. Bill it the PTS ter spirit of the enterprise, its anoceas can b» I termed an assured fact